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 reported adjusted operating income of $38.8 million, with premium growth of 9.5% and sales growth of 24.9% [21] Market Data and Key Metrics Changes - Persistency for total group was 89.8%, down from 92.5% a year ago, but still above expectations [18] - Sales growth across core segments was robust, with Group Disability and Group Life showing favorable earnings power [7][8] - The investment portfolio maintained an A-average rating with historically low exposure to below investment-grade securities [10][30] Company Strategy and Development Direction - The company is focused on strategic actions to manage the closed block and reduce associated risks, including a successful long-term care reinsurance transaction [9][10] - Capital priorities include investing in strategic initiatives, pursuing selective M&A opportunities, and returning capital to shareholders through dividends and share repurchases [11][29] - The company aims to enhance its market position through technology initiatives and integrated benefit solutions [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustainable results and maintain strong capital positions, with no future capital contributions expected for long-term care reserves [28][30] - The operating environment is viewed as constructive, with ongoing discussions for potential future risk transfer deals [66] - The company remains focused on driving innovation and operational excellence while preparing for continued growth into 2026 [31][32] 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 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 flowing through to protections without significantly impacting statutory reserving levels [36][38] Question: What is the rationale for keeping capital in Fairwind? - Management indicated that leaving capital in Fairwind is prudent given the strong protections in place [39][40] Question: How do the recent assumption changes impact the premium rate increases? - Management confirmed that the changes are linked to the removal of morbidity and mortality improvement assumptions, which will flow through to the rate increase program [44][45] Question: What is the outlook for group disability recoveries? - Management expressed confidence in the stability of recoveries, noting that the process for managing group disability remains effective [58][89] Question: Will share buybacks potentially ramp up next year? - Management stated that while share repurchases have been increasing, the focus will remain on growing core operations and pursuing selective M&A opportunities [93][94]