Unum Group 2026 Conference Call Summary Company Overview - **Company**: Unum Group (NYSE: UNM) - **Date**: February 09, 2026 - **Speakers**: Rick McKenney (CEO), Steve Zabel (CFO) Key Points 2026 Outlook - Unum expects top-line growth in premium between **4%-7%** off a **$10 billion** base, leading to an **earnings per share (EPS)** growth of **8%-12%** [2][3] - The company plans to return approximately **100%** of its earnings to shareholders through dividends and share repurchases [3][4] Group Disability Business - The group disability market is competitive but rational in pricing, with Unum's strong positioning due to investments in employer HRIS systems [6][7] - The benefit ratio for group disability was **62.5%** in 2025, with expectations to adjust prices leading to a target range of **62%-64%** for 2026 [9][10] - Historical benefit ratios were in the low **70s** pre-pandemic, with normalization expected around **65%** over the next **2-3 years** [11][12] Closed Block Strategy - Unum has fully closed its Closed Block, which will now be reported below the line as a special item, isolating core business performance [15][20] - The company maintains a **$2.2 billion** protection behind the Closed Block, with no additional capital planned for this segment [22][24] Leave Management - Unum has invested in leave management platforms, managing over **2 million** people on its leave platform, which integrates well with short-term and long-term disability offerings [35][36] - The proliferation of new leave types has created a demand for effective leave management solutions, positioning Unum favorably in the market [33][34] Technology and AI Integration - Unum has developed various technologies, including HR Connect and Agent Assist, to enhance customer experience and operational efficiency [39][40] - AI is being utilized to improve customer interactions and internal efficiencies, with ongoing investments in AI solutions [50][51] Capital Deployment - In 2025, Unum repurchased **$1 billion** in shares and paid **$300 million** in dividends, with plans for similar capital deployment in 2026 [71][72] - The company ended 2025 with a **440 RBC** and **$2.2 billion** in cash, indicating a strong capital position [73][78] Market Sentiment and Economic Outlook - Unum's growth is expected to continue despite potential economic headwinds, with a focus on maintaining a strong benefits package for employees [62][63] - The company anticipates a **4%-7%** top-line growth rate, driven by wage inflation and payroll growth [57][58] Competitive Dynamics - The competitive landscape in group life and AD&D remains stable, with Unum focusing on delivering comprehensive packages that include leave management and voluntary benefits [91][92] Future Growth Opportunities - Unum is exploring inorganic growth opportunities, particularly in the UK and Poland, to expand its scale and capabilities [90][87] - The company aims to leverage technology and services to enhance customer experience and drive growth [88][89] Conclusion Unum Group is positioned for steady growth in 2026, with a strong focus on capital return to shareholders, strategic investments in technology, and a commitment to enhancing its core business offerings. The company remains optimistic about its market position and growth potential despite economic uncertainties.