Unum(UNM) - 2025 Q3 - Quarterly Results

Financial Performance - Premium income for Q3 2025 was $2,688.0 million, an increase from $2,628.8 million in Q3 2024, representing a growth of 2.3%[5] - Adjusted operating revenue for the nine months ended September 30, 2025, reached $9,923.3 million, up from $9,675.2 million in the same period of 2024, reflecting a growth of 2.6%[5] - Net income for Q3 2025 was $39.7 million, a significant decrease from $645.7 million in Q3 2024, indicating a decline of 93.8%[5] - Total revenue for Q3 2025 was $3,378.4 million, compared to $3,217.0 million in Q3 2024, marking an increase of 5.0%[5] - Total operating revenue for Unum Group rose by 0.6% to $3,250.4 million for the three months ended September 30, 2025, from $3,229.9 million in the prior year[30] - Total operating revenue for the nine months ended September 30, 2025, was $2,760.3 million, a decrease of 0.7% from $2,780.6 million in the same period of 2024[40] Equity and Liabilities - Adjusted stockholders' equity as of September 30, 2025, was $12,494.6 million, down from $13,078.5 million a year earlier, a decrease of 4.5%[6] - The total stockholders' equity (book value) as of September 30, 2025, was $10,908.8 million, slightly down from $10,951.4 million in the previous year[6] - Total liabilities increased to $52.77 billion as of September 30, 2025, compared to $50.99 billion at the end of 2024[23] - The company’s retained earnings grew to $13.25 billion as of September 30, 2025, up from $12.91 billion at the end of 2024[23] - Total Stockholders' Equity as of September 30, 2025, is $10,908.8 million, a decrease from $11,320.0 million on June 30, 2025[88] Sales Performance - Total sales for the Unum US segment reached $179.1 million in Q3 2025, a 16.1% increase from $154.3 million in Q3 2024[13] - Group Long-term Disability sales increased by 16.4% to $28.4 million in Q3 2025, compared to $24.4 million in Q3 2024[13] - Group Short-term Disability sales surged by 56.6% to $24.9 million in Q3 2025, up from $15.9 million in Q3 2024[13] - Total sales for the Unum International segment rose to $49.7 million in Q3 2025, a 30.1% increase from $38.2 million in Q3 2024[16] - Life insurance sales increased by 11.6% to $31.8 million in Q3 2025, compared to $28.5 million in Q3 2024[18] Investment Income - Unum US reported a net investment income decrease of 5.7% to $151.9 million for the three months ended September 30, 2025, down from $161.0 million in the previous year[30] - Net investment income for the three months ended September 30, 2025, was $75.3 million, down from $78.7 million in the same period of 2024[40] - Net Investment Income for the three months ended September 30, 2025, was $224.7 million, down 20.9% from $284.3 million in the prior year[56] Benefits and Expenses - Total benefits and expenses for Q3 2025 were $3,323.9 million, a significant increase from $2,402.4 million in Q3 2024[11] - Benefits and expenses for Unum US increased by 3.4% to $1,486.0 million for the three months ended September 30, 2025, compared to $1,437.7 million in the same period of 2024[31] - The total benefits and expenses for the three months ended September 30, 2025, were $680.0 million, a decrease of 0.6% from $684.0 million in the same period of 2024[40] Ratios and Returns - The adjusted operating return on equity for Unum US was 23.9% in Q3 2025, down from 25.5% in Q3 2024[5] - The benefit ratio for Unum US was 59.4% in Q3 2025, slightly up from 58.5% in Q3 2024[37] - The benefit ratio for the three months ended September 30, 2025, was 61.3%, an increase from 59.1% in the same period of 2024[40] - The adjusted operating income ratio for the three months ended September 30, 2025, was 17.0%, down from 19.8% in the same period of 2024[42] Market Performance - The company maintained stable ratings across major agencies, with a financial strength rating of 'A' for several subsidiaries[9] - The leverage ratio for the nine months ended September 30, 2025, was 23.4%, compared to 21.3% for the same period in 2024, indicating an increase in leverage[6] - The leverage ratio and book value per common share are important measures that exclude certain components of accumulated other comprehensive income (AOCI)[70] Corporate Segment - Total Operating Revenue for the Corporate Segment was $20.0 million for the three months ended September 30, 2025, compared to $12.5 million in the same period of 2024[58] - Loss Before Income Tax and Net Investment Gains and Losses for the Corporate Segment was $(47.7) million for the three months ended September 30, 2025, compared to $(64.7) million in the same period of 2024[58] - The Adjusted Operating Loss for the Corporate Segment was $(47.7) million for the three months ended September 30, 2025, compared to $(49.4) million in the same period of 2024[58] Reinsurance and Reserves - The reinsurance agreement with Fortitude Re covers approximately 21% of total Closed Block long-term care future policy benefits and 15% of Unum US individual disability future policy benefits as of December 31, 2024[68] - The third quarter of 2025 saw a net reserve increase of $478.5 million before tax, while the third quarter of 2024 experienced a net reserve decrease of $357.4 million before tax[68]