Financial Data and Key Metrics Changes - For the full year 2025, adjusted EPS was $8.13, down year-over-year and below expectations [6] - Adjusted operating income for Unum US was $289.7 million in Q4, a decrease of 13.1% year-over-year, and full-year adjusted operating income decreased 11.6% to $1.3 billion [20] - After-tax adjusted operating earnings for Q4 were $322.3 million, or $1.92 per share, and for the full year, it was $1.4 billion, or $8.83 per share [18] Business Line Data and Key Metrics Changes - Core operations premium grew nearly 4.5% for the year, with Colonial Life growing 3.1% and International growing 10% [8] - Group Disability reported a Benefit Ratio of 64.2% in Q4 and 62.4% for the full year, reflecting a normalization from a historically low Benefit Ratio of 59% in 2024 [20] - Colonial Life's adjusted operating income decreased 7.2% in Q4 to $113.9 million, while full-year adjusted operating income declined 0.7% to $463.6 million [24] Market Data and Key Metrics Changes - Persistency in US Group was reported at 90.2%, indicating strong customer retention [16] - International segment saw double-digit premium growth, with Q4 premiums growing 11.5% to $283.9 million and full-year premium increasing 10% to $1.1 billion [24] Company Strategy and Development Direction - The company is focused on digital capabilities to enhance customer experience and operational efficiency, with over one-third of core premium associated with digital tools [9] - The strategy includes organic growth and small acquisitions, with a commitment to return value to shareholders through dividends and share buybacks [11] - The company aims for top-line growth in the range of 4%-7% for 2026, supported by strong persistency and new sales [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting adjusted EPS growth of 8%-12% and a stable Benefit Ratio of 62%-64% for Group Disability [35] - The company is positioned to capitalize on opportunities with strong capital levels and a focus on reducing legacy exposures [13] - Management highlighted the importance of maintaining a disciplined approach to pricing and risk management in a competitive market [50] Other Important Information - The company completed a significant reinsurance transaction that ceded roughly 20% of long-term care reserves, reducing potential capital volatility [12] - The company plans to exclude Closed Block earnings from Adjusted Operating Earnings starting in Q1 2026, aiming for clearer financial reporting [29] Q&A Session Summary Question: Drivers of Group's Disability loss ratio and outlook for 2026 - Management discussed the favorable market conditions and pricing discipline that support confidence in maintaining strong loss ratios [50][51] Question: 2026 EPS outlook on an apples-to-apples basis - Management indicated expectations for higher top-line growth and consistent Benefit Ratio levels, leading to an 8%-12% EPS growth rate [60][61] Question: Competition in the market and pricing dynamics - Management acknowledged competitive pressures but emphasized their pricing discipline and strong market position [87]