Financial Data and Key Metrics Changes - Year-to-date premium growth increased by 4%, with earnings per share at $2.09, slightly below expectations due to volatility in the closed block [6][7][15] - Core business profitability trends remain strong, with return on equity for core operations near 20% and overall return on equity at 11.3% [9][11] - Adjusted after-tax operating income per share decreased from $2.13 to $2.09 year-over-year, reflecting strong core business returns that normalized from historic highs [15] Business Line Data and Key Metrics Changes - Unum US segment produced adjusted operating income of $334.9 million, down from $363.3 million a year ago, with premium growth adjusted for ceded business exceeding 4% [16][18] - Colonial Life adjusted operating income increased to $116.6 million, driven by 3.3% premium growth and 3.1% sales growth [19] - International segment adjusted operating income totaled $38.8 million, with premium growth of 9.5% and sales growth of 24.9% [21] Market Data and Key Metrics Changes - Group Disability produced adjusted operating earnings of $133.5 million, with a benefit ratio of 61.3%, aligning with low 60s guidance [16][17] - Persistency for total group was 89.8%, slightly down from 92.5% a year ago, but above expectations [18] - The closed block produced adjusted operating income of $14.1 million, down from $34.2 million in the prior year, impacted by lower alternative investment income [21][22] Company Strategy and Development Direction - The company is focused on managing the closed block strategy and reducing associated risks, with no future capital contributions expected [10][28] - Strategic actions include the successful closing of a long-term care reinsurance transaction and ongoing management of the block to strengthen long-term stability [9][10] - The company aims to invest in strategic initiatives, pursue selective M&A opportunities, and return capital to shareholders through dividends and share repurchases [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business's ability to deliver sustainable results and maintain strong margins [31][32] - The company anticipates continued growth into 2026, supported by a disciplined approach to pricing and risk selection [12][31] - Management highlighted the importance of technology initiatives in driving engagement and retention among employers and employees [8][12] Other Important Information - The annual reserve assumption review resulted in a net increase in reserves of $478.5 million pre-tax, with strategic actions taken to de-risk the long-term care block [15][23] - The investment portfolio maintains an A-average rating with historically low exposure to below investment-grade securities [10][30] - The company returned nearly $1 billion to shareholders through share repurchases and dividends in the first nine months of the year [11][29] Q&A Session Summary Question: Can you provide more color on the statutory side of the LTC assumption review? - Management explained that the reserve charge impacted the entire block of business, with adjustments made that did not significantly affect statutory reserving levels [36][38] Question: What is the rationale for keeping capital in FairWind? - Management indicated that it is prudent to leave capital in FairWind due to strong protections in place [39][40] Question: How do the recent assumption changes impact the rate increase program? - Management confirmed that the changes in assumptions will flow through to the rate increase program, which is expected to be manageable and consistent with historical practices [44][85] Question: What are the expectations for group disability recoveries? - Management expressed confidence in the stability of recoveries, noting that the team effectively manages the group disability block [58][89] Question: What is the outlook for share buybacks and other uses of cash? - Management stated that capital deployment plans remain consistent, with a focus on growing core operations and pursuing selective M&A opportunities [93][94]