Unum(UNM) - 2025 Q4 - Annual Report

Risks and Compliance - The company is subject to numerous risks that could cause actual results to differ materially from forward-looking statements, including fluctuations in insurance reserve liabilities and claim payments [14]. - The company faces significant competition in the insurance market, impacting its ability to retain customers and agents, with a risk of adverse effects on product persistency [105]. - The company is exposed to risks from cybersecurity attacks, which could compromise data and affect business operations [14]. - The company must comply with extensive regulations in the U.S., U.K., and Poland, which can change and impact operations [108]. - The company is subject to regulatory oversight by various authorities, including the U.S. Department of Labor and state insurance regulators, affecting its operational practices [110]. - The company is subject to various federal, state, and foreign laws and regulations, including those related to cybersecurity and data protection, which may increase compliance costs [126][128]. - The company continues to monitor legislative and regulatory developments that could impact profitability, capital, and resources [139]. Financial Performance - Adjusted operating revenue for Unum International segment was approximately 9% of consolidated adjusted operating revenue in 2025, compared to 8% in both 2024 and 2023 [141]. - As of December 31, 2025, total assets for Unum International segment equaled approximately 6% of consolidated assets, while total liabilities equaled approximately 5% of consolidated liabilities [141]. - The company recorded a Corporate Alternative Minimum Tax (CAMT) liability as of December 31, 2025, due to the Inflation Reduction Act, which imposed a 15% CAMT on corporations with average adjusted financial statement income over $1 billion [130]. - The U.K. corporate tax rate increased to 25% effective April 1, 2023, impacting the company's financial position and results of operations [131]. - The company’s financial strength ratings reflect its capital levels, earnings, growth, and market position, which are essential for maintaining customer trust [99]. Workforce and Diversity - The company employed 10,910 employees as of December 31, 2025, with approximately 84% based in the United States [142]. - Approximately 65% of the company's employees identify as female, and 20% identify as members of an ethnic or racially diverse group [146]. - The company has a hybrid office schedule for employees, increasing in-office days during 2025 to enhance customer focus and workplace inclusivity [143]. - The company is committed to supporting employee growth through various development programs, including operational training and career development resources [148]. Leadership Appointments - Ms. Ahmed appointed as Executive Vice President, People and Communications in October 2018, previously served at AmTrust Financial Services from May 2015 to October 2018 [154]. - Ms. Anderson joined as Executive Vice President, Chief Information and Digital Officer in April 2025, previously held similar roles at Aflac and Liberty Mutual Group [155]. - Mr. Arnold became Executive Vice President, Voluntary Benefits and President, Colonial Life in February 2020, previously served as CEO of Colonial Life from January 2015 [156]. - Ms. Iglesias appointed as Executive Vice President, General Counsel in January 2015, previously served at WellCare Health Plans from February 2012 to December 2014 [157]. - Mr. Pyne named Executive Vice President, Group Benefits in February 2020, previously held senior roles in Growth Operations and Distribution [158]. - Mr. Till appointed as Executive Vice President and CEO, Unum International in April 2021, previously served as Managing Director at Aegon UK [159].