0000005513FALSE00000055132024-07-302024-07-300000005513us-gaap:CommonClassAMemberexch:XNYS2024-07-302024-07-300000005513exch:XNYSunm:A6250JuniorSubordinatedNotesDue2058Member2024-07-302024-07-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2024 | | | | | | | | | | | | | | |
| | | | |
UNUM GROUP |
(Exact name of registrant as specified in its charter) |
| | | | |
Delaware | | 001-11294 | | 62-1598430 |
(State or other jurisdiction of incorporation) | | (Commission File Number) | | (IRS Employer Identification No.) |
1 Fountain Square
Chattanooga, Tennessee 37402
(Address of principal executive offices) (Zip Code)
(423) 294-1011
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
Common stock, $0.10 par value | | UNM | | New York Stock Exchange |
6.250% Junior Subordinated Notes due 2058 | | UNMA | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2024, Unum Group (the "Company") issued a news release reporting its results for the second quarter of 2024, a copy of which is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
Also on July 30, 2024, the Company posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the second quarter of 2024. A copy of the Statistical Supplement is furnished herewith as Exhibit 99.2 and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any of the Company's filings under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
On July 30, 2024, the Company issued a news release announcing that its Board of Directors has authorized the repurchase of up to $1 billion of its outstanding shares of common stock from time to time beginning on August 1, 2024. A copy of the news release concerning the share repurchase authorization is filed herewith as Exhibit 99.3 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| | | | | | | | |
Exhibit No. | | Description |
| | |
99.1 | | |
| | |
99.2 | | |
| | |
99.3 | | |
| | |
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
| | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | | | | |
| Unum Group |
| (Registrant) |
| | |
| | |
Date: July 30, 2024 | By: | /s/ J. Paul Jullienne |
| | Name: | J. Paul Jullienne |
| | Title: | Vice President, Managing Counsel, and |
| | | Corporate Secretary |
| | | |
| | | | | | | | | | | | | | |
| | | | Exhibit 99.1 |
| | | | |
| | | | 1 Fountain Square Chattanooga, TN 37402 www.unum.com |
| | | | |
| | FOR IMMEDIATE RELEASE |
| | Contacts | | |
| | MEDIA | | Dottie McCallen dmccallen@unum.com |
| INVESTORS | | Matt Royal Investorrelations@unum.com |
Unum Group Reports Second Quarter 2024 Results
•Net income of $389.5 million ($2.05 per diluted common share) for the second quarter of 2024; after-tax adjusted operating income was $411.4 million ($2.16 per diluted common share).
•Growing top-line with core operations premium growth of 5.4 percent on a constant currency basis, and robust margins across our businesses.
•Full-year 2024 outlook for after-tax adjusted operating earnings per share increased to 10 percent to 15 percent.
•Strong balance sheet with holding company liquidity of $1.3 billion and weighted average risk-based capital ratio of approximately 470 percent, well in excess of targets; statutory operating earnings of $366.1 million.
•New share repurchase authorization of $1.0 billion effective August 1, 2024, supports dynamic approach to capital deployment; second quarter capital deployment to shareholders totaled $248.8 million, including $179.8 million of shares repurchased, and $69.0 million of common stock dividends.
•Book value per common share of $55.63 grew 18.2 percent over the year-ago quarter; book value per common share excluding accumulated other comprehensive income (AOCI) of $70.76 grew 9.4 percent over the year-ago quarter.
CHATTANOOGA, Tenn. (July 30, 2024) - Unum Group (NYSE: UNM) today reported net income of $389.5 million ($2.05 per diluted common share) for the second quarter of 2024, compared to net income of $392.9 million ($1.98 per diluted common share) for the second quarter of 2023.
Included in net income for the second quarter of 2024 are the after-tax amortization of the cost of reinsurance of $8.2 million ($0.04 per diluted common share), the after-tax impact of non-contemporaneous reinsurance of $5.5 million ($0.03 per diluted common share), and a net after-tax investment loss on the Company’s investment portfolio of $8.2 million ($0.04 per diluted common share). Included in net income for the second quarter of 2023 are the after-tax amortization of the cost of reinsurance of $8.7 million ($0.04 per diluted common share), the after-tax impact of non-contemporaneous reinsurance of $7.9 million ($0.04 per diluted common share), and a net after-tax investment gain on the Company’s investment portfolio of $0.7 million (de minimis amount per diluted common share). Excluding the items above, after-tax adjusted operating income was $411.4 million ($2.16 per diluted common share) in the second quarter of 2024, compared to $408.8 million ($2.06 per diluted common share) in the second quarter of 2023.
“Our team delivered another strong quarter as we continued to execute against our growth strategy, with contributions from across the company and particularly strong results in our Group Life business. As a result of our better performance in the first half of 2024 and positive trends, we are increasing our full year after-tax adjusted operating earnings per share outlook to double digit growth,” said Richard P. McKenney, president and chief executive officer. “Reflecting on our strong performance, we have continued to invest in growth to help ensure we remain the preferred choice for our customers while consistently returning capital to our shareholders. In line with that, today, we announced a new $1 billion share repurchase program. As we enter the second half of the year, the environment for our business remains favorable, and we have the capabilities and solutions to expand our customer base, and build shareholder value.”
RESULTS BY SEGMENT
We measure and analyze our segment performance on the basis of "adjusted operating income" or "adjusted operating loss", which differ from income before income tax as presented in our consolidated statements of income due to the exclusion of investment gains and losses, amortization of cost of reinsurance, the impact of non-contemporaneous reinsurance, and reserve assumption updates. Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. Reserve assumption updates may result in increases or decreases to earnings. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for income before income tax, net income or net loss.
Unum US Segment
Unum US reported adjusted operating income of $357.5 million in the second quarter of 2024, an increase of 4.2 percent from $343.1 million in the second quarter of 2023. Premium income increased 5.5 percent to $1,730.9 million in the second quarter of 2024, compared to $1,641.4 million in the second quarter of 2023. Net investment income was $158.1 million in the second quarter of 2024, which was generally consistent to the $158.0 million in the second quarter of 2023.
Within the Unum US operating segment, the group disability line of business reported a 4.1 percent decrease in adjusted operating income to $153.2 million in the second quarter of 2024, compared to $159.8 million in the second quarter of 2023. Premium income for the group disability line of business increased 3.3 percent to $797.8 million in the second quarter of 2024, compared to $772.3 million in the second quarter of 2023, driven by favorable persistency and higher prior period sales. Net investment income decreased 3.5 percent to $78.3 million in the second quarter of 2024, compared to $81.1 million in the second quarter of 2023, due to a decrease in the level of invested assets, partially offset by an increase in the yield on invested assets. The benefit ratio for the second quarter of 2024 was 59.1 percent, compared to 59.4 percent in the second quarter of 2023, due primarily to favorable recoveries in our group long-term disability product line and favorable stop loss experience, partially offset by higher average new claim size in our group long-term disability product line. Group long-term disability sales were $64.8 million in the second quarter of 2024, a decrease of 1.2 percent from $65.6 million in the second quarter of 2023. Group short-term disability sales were $42.3 million in the second quarter of 2024, a decrease of 14.7 percent from $49.6 million in the second quarter of 2023. Persistency in the group long-term disability product line was 93.1 percent for the first half of 2024, compared to 91.0 percent for the first half of 2023. Persistency in the group short-term disability product line was 91.8 percent for the first half of 2024, compared to 88.6 percent for the first half of 2023.
The group life and accidental death and dismemberment line of business reported a 72.7 percent increase in adjusted operating income to $89.1 million in the second quarter of 2024, compared to $51.6 million in the second quarter of 2023. Premium income for this line of business increased 7.0 percent to $493.9 million in the second quarter of 2024, compared to the $461.8 million in the second quarter of 2023 due primarily to favorable persistency and higher prior period sales. Net investment income was $22.5 million in the second quarter of 2024, which was generally consistent with $21.9 million in the second quarter of 2023. The benefit ratio in the second quarter of 2024 was 65.4 percent, compared to 73.0 percent in the second quarter of 2023 due primarily to favorable incidence in the group life product line, partially offset by higher average claim size across all product lines. Group life and accidental death and dismemberment sales were $81.9 million in the second quarter of 2024, a decrease of 7.6 percent from $88.6 million in the second quarter of 2023. Persistency in the group life product line was 92.1 percent for the first half of 2024, compared to 89.3 percent for the first half of 2023. Persistency in the accidental death and dismemberment product line was 91.6 percent for the first half of 2024, compared to 88.1 percent for the first half of 2023.
The supplemental and voluntary line of business reported a decrease of 12.5 percent in adjusted operating income to $115.2 million in the second quarter of 2024, compared to $131.7 million in the second quarter of 2023. Premium income for the supplemental and voluntary line of business increased 7.8 percent to $439.2 million in the second quarter of 2024, compared to $407.3 million in the second quarter of 2023, due to continued impacts from the partial recapture of a previously ceded block of business in the individual disability product line as well as favorable persistency and higher prior period sales in the voluntary benefits and dental and vision product lines. Net investment income increased 4.2 percent to $57.3 million in the second quarter of 2024, compared to $55.0 million in the second
quarter of 2023, due primarily to an increase in the yield on invested assets. The benefit ratio for the voluntary benefits product line was 45.1 percent in the second quarter of 2024, compared to 39.2 percent in the second quarter of 2023, due primarily to less favorable experience in the disability, critical illness, and hospital indemnity product lines. The benefit ratio for the individual disability product line was 39.0 percent for the second quarter of 2024, compared to 42.1 percent in the second quarter of 2023, due primarily to favorable recoveries. The benefit ratio for the dental and vision product line was 75.3 percent for the second quarter of 2024, compared to 76.2 percent in the second quarter of 2023, due primarily to lower average claim size and claims incidence. Relative to the second quarter of 2023, sales in the voluntary benefits product line increased 27.0 percent in the second quarter of 2024 to $79.5 million. Sales in the individual disability product line decreased 11.1 percent to $25.5 million in the second quarter of 2024. Sales in the dental and vision product line decreased 1.5 percent in the second quarter of 2024 to $19.2 million. Persistency in the voluntary benefits product line was 76.3 percent for the first half of 2024, compared to 74.4 percent for the first half of 2023. Persistency in the individual disability product line was 89.0 percent for the first half of 2024, compared to 89.3 percent for the first half of 2023. Persistency in the dental and vision product line was 81.1 percent for the first half of 2024, compared to 76.1 percent for the first half of 2023.
Unum International Segment
The Unum International segment reported adjusted operating income of $42.5 million in the second quarter of 2024, a decrease of 2.3 percent from $43.5 million in the second quarter of 2023. Premium income increased 10.1 percent to $228.8 million in the second quarter of 2024, compared to $207.9 million in the second quarter of 2023. Net investment income decreased 17.0 percent to $38.0 million in the second quarter of 2024, compared to $45.8 million in the second quarter of 2023. Sales increased 6.1 percent to $64.3 million in the second quarter of 2024, compared to $60.6 million in the second quarter of 2023.
The Unum UK line of business reported adjusted operating income, in local currency, of £32.5 million in the second quarter of 2024, a decrease of 5.2 percent from £34.3 million in the second quarter of 2023. Premium income was £151.8 million in the second quarter of 2024, an increase of 6.1 percent from £143.1 million in the second quarter of 2023, due primarily to in-force block growth. Net investment income was £27.9 million in the second quarter of 2024, a decrease of 19.1 percent from £34.5 million in the second quarter of 2023, due primarily to lower investment income from inflation index-linked bonds. The benefit ratio was 69.5 percent in the second quarter of 2024, compared to 72.3 percent in the second quarter of 2023, due primarily to favorable recoveries in the group long-term disability product line. Sales increased 5.7 percent to £44.3 million in the second quarter of 2024, compared to £41.9 million in the second quarter of 2023. Persistency in the group long-term disability product line was 92.7 percent for the first half of 2024, compared to 90.9 percent for the first half of 2023. Persistency in the group life product line was 88.2 percent for the first half of 2024, compared to 82.6 percent for the first half of 2023. Persistency in the supplemental product line was 89.4 percent for the first half of 2024, compared to 90.0 percent for the first half of 2023.
Colonial Life Segment
Colonial Life reported adjusted operating income of $116.9 million in the second quarter of 2024, a 1.2 percent increase compared to $115.5 million in the second quarter of 2023. Premium income increased 3.6 percent to $446.2 million in the second quarter of 2024, compared to $430.6 million in the second quarter of 2023, due to higher prior period sales and favorable persistency. Net investment income increased to $40.5 million in the second quarter of 2024, compared to $38.0 million in the second quarter of 2023, due primarily to an increase in the yield on invested assets and the level of invested assets. The benefit ratio was 47.8 percent in the second quarter of 2024, compared to 48.3 percent in the second quarter of 2023, primarily due to favorable benefit experience in the life and accident, sickness, and disability product lines. Sales increased 0.7 percent to $122.9 million in the second quarter of 2024, compared to $122.0 million in the second quarter of 2023. Persistency in the Colonial Life segment was 78.2 percent for the first half of 2024, compared to 77.5 percent for the first half of 2023.
Closed Block Segment
The Closed Block segment reported adjusted operating income of $51.6 million in the second quarter of 2024, which excludes the amortization of cost of reinsurance of $10.3 million and the impact of non-contemporaneous reinsurance of $7.0 million related to the Closed Block individual disability reinsurance transaction, compared to $51.2 million in the second quarter of 2023, which excludes the amortization of cost of reinsurance of $11.0 million and the impact of non-contemporaneous reinsurance of $9.9 million related to the Closed Block individual disability reinsurance transaction. Premium income for this segment is largely driven by our long-term care product line, and in the second quarter of 2024, premium income for long-term care was generally consistent with the same period of 2023. Net investment income increased 11.5 percent to $294.2 million in the second quarter of 2024, compared to $263.9 million in the second quarter of 2023, primarily due to an increase in the level of invested assets and higher miscellaneous investment income, primarily related to larger increases in the net asset value on our private equity partnerships.
The net premium ratio for the long-term care product line increased to 93.7 percent at June 30, 2024 from 86.1 percent at June 30, 2023, due primarily to the impacts of the reserve assumption updates in the third quarter of 2023. Benefits were unfavorable during the second quarter of 2024 relative to the same period of 2023 driven primarily by the increase in current period benefit expense resulting from the higher net premium ratio and the impact of capped cohorts. Compared to March 31, 2024, the net premium ratio decreased from 93.8 percent to 93.7 percent due to the impacts of favorable experience in uncapped cohorts. Overall claim experience improved sequentially and was relatively in line with our communicated guidance of short-term elevated experience.
Corporate Segment
The Corporate segment reported an adjusted operating loss of $45.3 million in the second quarter of 2024, compared to an adjusted operating loss of $34.9 million in the second quarter of 2023, due primarily to a decrease in net investment income, driven by increased allocation to our lines of business.
OTHER INFORMATION
Shares Outstanding
The Company’s weighted average number of shares outstanding, assuming dilution, was 190.3 million for the second quarter of 2024, compared to 198.1 million for the second quarter of 2023. Shares outstanding totaled 188.1 million at June 30, 2024. During the second quarter of 2024, the Company repurchased 3.5 million shares at a total cost of $179.8 million.
Capital Management
At June 30, 2024, the weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies was approximately 470 percent, and the holding companies had available holding company liquidity of $1,281.0 million.
Book Value
Book value per common share as of June 30, 2024 was $55.63, compared to $47.06 at June 30, 2023. Book value per common share excluding AOCI as of June 30, 2024 was $70.76, compared to $64.66 at June 30, 2023.
Effective Tax Rate
The effective tax rate on adjusted operating earnings was 21.4 percent in the second quarter of 2024.
Outlook
Full-year 2024 outlook increased due to the strong first half of the year, and the expectations that trends will continue for the second half of 2024. Previous outlook of an increase in after-tax adjusted operating income per share of 7 percent to 9 percent increased to 10 percent to 15 percent.
NON-GAAP FINANCIAL MEASURES
We analyze our performance using non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial measures are better performance measures and better indicators of the revenue and profitability and underlying trends in our business:
•After-tax adjusted operating income or loss, which excludes investment gains or losses, amortization of the cost of reinsurance, non-contemporaneous reinsurance, and reserve assumption updates;
•Book value per common share, which is calculated excluding AOCI.
Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. We believe after-tax adjusted operating income is a better performance measure and better indicator of the profitability and underlying trends in our business. Book value per common share excluding AOCI provides a more comparable and consistent view of our results, as AOCI tends to fluctuate depending on market conditions and general economic trends.
Cash flow assumptions used to calculate our liability for future policy benefits are reviewed at least annually and updated, as needed, with the resulting impact reflected in net income. While the effects of these assumption updates are recorded in the reporting period in which the review is completed, these updates reflect experience emergence and changes to expectations spanning multiple periods. We believe that by excluding the impact of reserve assumption updates we are providing a more comparable and consistent view of our quarterly results.
We exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that we recognized upon the exit of the business related to the policies on claim status as well as the impact of non-contemporaneous reinsurance that resulted from the adoption of Accounting Standards Update 2018-12 (ASU 2018-12). Due to the execution of the second phase of the reinsurance transaction occurring after January 1, 2021, the transition date of ASU 2018-12, in accordance with the provisions of the ASU related to non-contemporaneous reinsurance, we were required to establish the ceded reserves using an upper-medium grade fixed-income instrument as of the reinsurance transaction date in March 2021, which resulted in higher ceded reserves compared to that which was reported historically. However, the direct reserves for the block reinsured in the second phase were calculated using the original discount rate utilized as of the transition date. Both the direct and ceded reserves are then remeasured at each reporting period using a current discount rate reflective of an upper-medium grade fixed-income instrument, with the changes recognized in other comprehensive income (loss). While the total equity impact is neutral, the different original discount rates utilized for direct and ceded reserves result in disproportionate earnings impacts. The impact of non-contemporaneous reinsurance will fluctuate depending on the magnitude of reserve changes during the period. We believe that the exclusion of these items provides a better view of our results from our ongoing businesses.
We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability.
CONFERENCE CALL INFORMATION
Members of Unum Group senior management will host a conference call on Wednesday, July 31, 2024, at 8:00 am (Eastern Time) to discuss the results of operations for the second quarter of 2024. Topics may include forward-looking information, such as the Company’s outlook on future results, trends in operations, and other material information.
To receive dial in information for the call, please register in advance by using the following URL:
https://registrations.events/direct/Q4I330796246. Upon registration you will receive a dial-in number to use to access the event. It is recommended that you register at least 10 minutes before the start of the event. In addition, a live webcast of the call will also be available at www.investors.unum.com in a listen-only mode. It is recommended that webcast viewers access the “Investors” section of the Company’s website and opt-in to the webcast approximately 5-10 minutes prior to the start of the call. A replay of the webcast will be available on the Company's website. A replay of the call will also be available through Wednesday, August 7 by dialing 1-800-770-2030 (U.S.) or 1-609-800-9909 (all other locations) - access code 33079.
In conjunction with today’s earnings announcement, the Company’s Statistical Supplement for the second quarter of 2024 is available on the “Investors” section of the Company’s website.
# # #
ABOUT UNUM GROUP
Unum Group (NYSE: UNM), a leading international provider of workplace benefits and services, has been helping workers and their families thrive for more than 175 years. Through its Unum and Colonial Life brands, the company offers disability, life, accident, critical illness, dental, vision and stop-loss insurance; leave and absence management support; and behavioral health services. In 2023, Unum Group reported revenues of more than $12 billion and paid approximately $8 billion in benefits. The Fortune 500 company is recognized as one of the World’s Most Ethical Companies by Ethisphere®.
Visit the Unum Group newsroom (https://www.unumgroup.com/newsroom) for more information, and connect with us on LinkedIn (https://www.linkedin.com/company/unum), Facebook (https://www.facebook.com/unumbenefits/), and Instagram (https://www.instagram.com/unumbenefits/).
SAFE HARBOR STATEMENT
Certain information in this news release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those not based on historical information, but rather relate to our outlook, future operations, strategies, financial results, or other developments and speak only as of the date made. These forward-looking statements, including statements about anticipated growth in after-tax adjusted operating income per share, are subject to numerous assumptions, risks, and uncertainties, many of which are beyond our control. The following factors, in addition to other factors mentioned from time to time, may cause actual results to differ materially from those contemplated by the forward-looking statements: (1) fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets due to, among other factors, the rate of unemployment and consumer confidence, the emergence of new diseases, epidemics, or pandemics, new trends and developments in medical treatments, the effectiveness of our claims operational processes, and changes in governmental programs; (2) sustained periods of low interest rates; (3) unfavorable economic or business conditions, both domestic and foreign, that may result in decreases in sales, premiums, or persistency, as well as unfavorable claims activity or unfavorable returns on our investment portfolio; (4) the impact of pandemics and other public health issues on our business, financial position, results of operations, liquidity and capital resources, and overall business operations; (5) changes in, or interpretations or enforcement of, laws and regulations; (6) a cybersecurity attack or other security breach resulting in compromised data or the unauthorized acquisition of confidential data; (7) the failure of our business recovery and incident management processes to resume our business operations in the event of a natural catastrophe, cybersecurity attack, or other event; (8) investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our liabilities; (9) increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors; (10) ineffectiveness of our derivatives hedging programs due to changes in forecasted cash flows, the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation; (11) changes in our financial strength and credit ratings; (12) actual experience in the broad array of our products that deviates from our assumptions used in pricing, underwriting, and reserving; (13) Our ability to hire and retain qualified employees; (14) our ability to develop digital capabilities or execute on our technology systems upgrades or replacements; (15) availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us; (16) ability to generate sufficient internal liquidity and/or obtain external financing; (17) damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures; (18) disruptions to our business or our ability to leverage data caused by the use and reliance on third-party vendors, including vendors providing web and cloud-based applications; (19) recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets; (20) effectiveness of our risk management program; (21) contingencies and the level and results of litigation; (22) fluctuation in foreign currency exchange rates; and (23) our ability to meet environmental, social, and governance standards and expectations of investors, regulators, customers, and other stakeholders.
For further discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Part 1, Item 1A “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2023. The forward-looking statements in this news release are being made as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statement contained herein, even if made available on our website or otherwise.
Unum Group
FINANCIAL HIGHLIGHTS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
($ in millions, except share data) | | | | | | | |
| Three Months Ended June 30 | | Six Months Ended June 30 |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | |
Revenue | | | | | | | |
Premium Income | $ | 2,627.2 | | | $ | 2,509.1 | | | $ | 5,237.5 | | | $ | 4,968.4 | |
Net Investment Income | 545.1 | | | 531.1 | | | 1,058.6 | | | 1,039.9 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Net Investment Gain (Loss) | (10.4) | | | 0.9 | | | (11.6) | | | 1.0 | |
Other Income | 71.5 | | | 71.1 | | | 149.2 | | | 139.0 | |
Total Revenue | 3,233.4 | | | 3,112.2 | | | 6,433.7 | | | 6,148.3 | |
| | | | | | | |
Benefits and Expenses | | | | | | | |
| | | | | | | |
| | | | | | | |
Policy Benefits Including Remeasurement Gain | 1,809.5 | | | 1,753.6 | | | 3,594.8 | | | 3,490.0 | |
Commissions | 319.1 | | | 286.1 | | | 632.7 | | | 580.0 | |
Interest and Debt Expense | 49.9 | | | 48.9 | | | 99.4 | | | 97.0 | |
| | | | | | | |
Deferral of Acquisition Costs | (165.1) | | | (156.5) | | | (332.0) | | | (314.2) | |
Amortization of Deferred Acquisition Costs | 127.9 | | | 113.7 | | | 254.1 | | | 229.6 | |
Other Expenses | 596.6 | | | 568.0 | | | 1,193.5 | | | 1,116.2 | |
Total Benefits and Expenses | 2,737.9 | | | 2,613.8 | | | 5,442.5 | | | 5,198.6 | |
| | | | | | | |
Income Before Income Tax | 495.5 | | | 498.4 | | | 991.2 | | | 949.7 | |
Income Tax Expense | 106.0 | | | 105.5 | | | 206.5 | | | 198.5 | |
| | | | | | | |
Net Income | $ | 389.5 | | | $ | 392.9 | | | $ | 784.7 | | | $ | 751.2 | |
| | | | | | | |
PER SHARE INFORMATION | | | | | | | |
| | | | | | | |
Net Income Per Common Share | | | | | | | |
Basic | $ | 2.05 | | | $ | 1.99 | | | $ | 4.10 | | | $ | 3.80 | |
Assuming Dilution | $ | 2.05 | | | $ | 1.98 | | | $ | 4.09 | | | $ | 3.78 | |
| | | | | | | |
Weighted Average Common Shares - Basic (000s) | 189,894.1 | | | 197,180.4 | | | 191,302.5 | | | 197,641.3 | |
Weighted Average Common Shares - Assuming Dilution (000s) | 190,329.3 | | | 198,136.5 | | | 191,878.5 | | | 198,823.8 | |
Outstanding Shares - (000s) | | | | | 188,114.9 | | | 196,459.0 | |
| | | | | | | |
Reconciliation of Non-GAAP Financial Measures
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30 |
| 2024 | | 2023 |
| (in millions) | | per share * | | (in millions) | | per share * |
Net Income | $ | 389.5 | | | $ | 2.05 | | | $ | 392.9 | | | $ | 1.98 | |
Excluding: | | | | | | | |
| | | | | | | |
| | | | | | | |
Net Investment Gain (Loss) (net of tax expense (benefit) of $(2.2); $0.2) | (8.2) | | | (0.04) | | | 0.7 | | | — | |
| | | | | | | |
Amortization of the Cost of Reinsurance (net of tax benefit of $2.1; $2.3) | (8.2) | | | (0.04) | | | (8.7) | | | (0.04) | |
Non-Contemporaneous Reinsurance (net of tax benefit of $1.5; $2.0) | (5.5) | | | (0.03) | | | (7.9) | | | (0.04) | |
| | | | | | | |
After-tax Adjusted Operating Income | $ | 411.4 | | | $ | 2.16 | | | $ | 408.8 | | | $ | 2.06 | |
| | | | | | | |
* Assuming Dilution | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30 |
| 2024 | | 2023 |
| (in millions) | | per share | | (in millions) | | per share |
Total Stockholders' Equity (Book Value) | $ | 10,464.6 | | | $ | 55.63 | | | $ | 9,245.9 | | | $ | 47.06 | |
Excluding: | | | | | | | |
Net Unrealized Loss on Securities | (2,723.8) | | | (14.48) | | | (2,762.6) | | | (14.06) | |
Effect of Change in Discount Rate Assumptions on the Liability for Future Policy Benefits | 712.3 | | | 3.79 | | | 0.1 | | | — | |
Net Loss on Derivatives | (164.6) | | | (0.87) | | | (33.3) | | | (0.17) | |
Subtotal | 12,640.7 | | | 67.19 | | | 12,041.7 | | | 61.29 | |
Excluding: | | | | | | | |
Foreign Currency Translation Adjustment | (328.4) | | | (1.75) | | | (327.1) | | | (1.67) | |
Subtotal | 12,969.1 | | | 68.94 | | | 12,368.8 | | | 62.96 | |
Excluding: | | | | | | | |
Unrecognized Pension and Postretirement Benefit Costs | (341.7) | | | (1.82) | | | (334.7) | | | (1.70) | |
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss | $ | 13,310.8 | | | $ | 70.76 | | | $ | 12,703.5 | | | $ | 64.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Three Months Ended |
| | | | | | June 30, 2024 | | June 30, 2023 |
| | | | | | Premium Income | | Premium Income in Local Currency1 | | Weighted Average Exchange Rate2 | | Premium Income in Constant Currency |
| | | | | | |
| | | | | | |
Unum International | | | | | | | | | | | | |
Unum UK | | | | | | $ | 191.7 | | | £ | 143.1 | | | 1.263 | | | $ | 180.7 | |
Unum Poland | | | | | | 37.1 | | | zł | 119.1 | | | 0.250 | | | 29.8 | |
Total | | | | | | 228.8 | | | | | | | 210.5 | |
Unum US | | | | | | 1,730.9 | | | $ | 1,641.4 | | | | | 1,641.4 | |
Colonial Life | | | | | | 446.2 | | | $ | 430.6 | | | | | 430.6 | |
Core Operations | | | | | | $ | 2,405.9 | | | | | | | $ | 2,282.5 | |
1Premium income shown in millions of pounds for Unum UK, millions of zlotys for Unum Poland, and millions of U.S. dollars for Unum US and Colonial Life.
2Exchange rate is calculated using the average foreign currency exchange rates for the most recent period, applied to the comparable prior period.
Unum Group
Statistical Supplement Second Quarter 2024
TABLE OF CONTENTS
(in millions of dollars, except share data and where noted)
Interim Results are Unaudited
| | | | | | | | | | | |
| | Page | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | |
| See "Appendix to Statistical Supplement" on page 15 for a summary of significant items and page 15.3 for a reconciliation of our non-GAAP financial measures. | |
| | | |
| N.M. = not a meaningful percentage | | |
| | | |
Unum Group Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Consolidated U.S. GAAP Results¹ | | | | | | | | | | | |
Premium Income | $ | 2,627.2 | | | $ | 2,509.1 | | | $ | 5,237.5 | | | $ | 4,968.4 | | | $ | 10,046.0 | | | $ | 9,616.5 | |
| | | | | | | | | | | |
Adjusted Operating Revenue | $ | 3,243.8 | | | $ | 3,111.3 | | | $ | 6,445.3 | | | $ | 6,147.3 | | | $ | 12,421.9 | | | $ | 11,999.8 | |
Net Investment Gain (Loss) | (10.4) | | | 0.9 | | | (11.6) | | | 1.0 | | | (36.0) | | | (15.7) | |
Total Revenue | $ | 3,233.4 | | | $ | 3,112.2 | | | $ | 6,433.7 | | | $ | 6,148.3 | | | $ | 12,385.9 | | | $ | 11,984.1 | |
| | | | | | | | | | | |
Net Income | $ | 389.5 | | | $ | 392.9 | | | $ | 784.7 | | | $ | 751.2 | | | $ | 1,283.8 | | | $ | 1,407.2 | |
Net Income Per Common Share: | | | | | | | | | | | |
Basic | $ | 2.05 | | | $ | 1.99 | | | $ | 4.10 | | | $ | 3.80 | | | $ | 6.53 | | | $ | 7.01 | |
Assuming Dilution | $ | 2.05 | | | $ | 1.98 | | | $ | 4.09 | | | $ | 3.78 | | | $ | 6.50 | | | $ | 6.96 | |
| | | | | | | | | | | |
Assets | | | | | $ | 62,044.4 | | | $ | 61,904.4 | | | $ | 63,255.2 | | | $ | 61,148.5 | |
Liabilities | | | | | $ | 51,579.8 | | | $ | 52,658.5 | | | $ | 53,603.8 | | | $ | 52,413.5 | |
Stockholders' Equity | | | | | $ | 10,464.6 | | | $ | 9,245.9 | | | $ | 9,651.4 | | | $ | 8,735.0 | |
Adjusted Stockholders' Equity | | | | | $ | 12,640.7 | | | $ | 12,041.7 | | | $ | 12,292.6 | | | $ | 11,459.1 | |
| | | | | | | | | | | |
Adjusted Operating Return on Equity | | | | | | | | | | | |
Unum US | 25.5 | % | | 24.3 | % | | 26.3 | % | | 22.3 | % | | 23.1 | % | | 16.4 | % |
Unum International | 17.6 | % | | 18.2 | % | | 16.0 | % | | 17.5 | % | | 16.5 | % | | 20.7 | % |
Colonial Life | 20.1 | % | | 21.5 | % | | 20.0 | % | | 19.5 | % | | 18.1 | % | | 19.9 | % |
Core Operating Segments | 23.2 | % | | 22.9 | % | | 23.6 | % | | 21.1 | % | | 21.2 | % | | 17.7 | % |
Consolidated | 13.1 | % | | 13.8 | % | | 13.2 | % | | 13.3 | % | | 12.7 | % | | 11.8 | % |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Traditional U.S. Life Insurance Companies' Statutory Results2 | | | | | | | | | | | |
Net Gain from Operations, After Tax | $ | 366.1 | | | $ | 313.7 | | | $ | 716.6 | | | $ | 589.9 | | | $ | 1,351.5 | | | $ | 965.4 | |
Net Realized Capital Loss, After Tax | (12.4) | | | (0.5) | | | (4.6) | | | (0.5) | | | (21.6) | | | — | |
| | | | | | | | | | | |
Net Income | $ | 353.7 | | | $ | 313.2 | | | $ | 712.0 | | | $ | 589.4 | | | $ | 1,329.9 | | | $ | 965.4 | |
| | | | | | | | | | | |
Capital and Surplus | | | | | $ | 4,403.9 | | | $ | 4,201.5 | | | $ | 3,751.3 | | | $ | 3,816.3 | |
| | | | | | | | | | | |
Weighted Average Risk-based Capital Ratio | | | | | ~ 470% | | ~ 450% | | ~ 415% | | ~ 420% |
1 Generally Accepted Accounting Principles
2 Our traditional U.S. life insurance companies are Provident Life and Accident Insurance Company, Unum Life Insurance Company of America, The Paul Revere Life Insurance Company, Colonial Life & Accident Insurance Company, Provident Life and Casualty Insurance Company, First Unum Life Insurance Company, Unum Insurance Company, and Starmount Life Insurance Company.
Unum Group Capital Metrics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| (in millions) | | per share | | (in millions) | | per share | | (in millions) | | per share | | (in millions) | | per share |
| | | | | |
Total Stockholders' Equity (Book Value) | $ | 10,464.6 | | | $ | 55.63 | | | $ | 9,245.9 | | | $ | 47.06 | | | $ | 9,651.4 | | | $ | 49.91 | | | $ | 8,735.0 | | | $ | 44.17 | |
Excluding: | | | | | | | | | | | | | | | |
Net Unrealized Loss on Securities | (2,723.8) | | | (14.48) | | | (2,762.6) | | | (14.06) | | | (1,919.1) | | | (9.92) | | | (3,028.4) | | | (15.31) | |
Effect of Change in Discount Rate Assumptions on the Liability for Future Policy Benefits | 712.3 | | | 3.79 | | | 0.1 | | | — | | | (648.4) | | | (3.35) | | | 313.9 | | | 1.59 | |
Net Loss on Derivatives | (164.6) | | | (0.87) | | | (33.3) | | | (0.17) | | | (73.7) | | | (0.39) | | | (9.6) | | | (0.05) | |
Subtotal | 12,640.7 | | | 67.19 | | | 12,041.7 | | | 61.29 | | | 12,292.6 | | | 63.57 | | | 11,459.1 | | | 57.94 | |
Excluding: | | | | | | | | | | | | | | | |
Foreign Currency Translation Adjustment | (328.4) | | | (1.75) | | | (327.1) | | | (1.67) | | | (321.1) | | | (1.66) | | | (390.1) | | | (1.98) | |
Subtotal | 12,969.1 | | | 68.94 | | | 12,368.8 | | | 62.96 | | | 12,613.7 | | | 65.23 | | | 11,849.2 | | | 59.92 | |
Excluding: | | | | | | | | | | | | | | | |
Unrecognized Pension and Postretirement Benefit Costs | (341.7) | | | (1.82) | | | (334.7) | | | (1.70) | | | (345.7) | | | (1.79) | | | (334.1) | | | (1.69) | |
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss | $ | 13,310.8 | | | $ | 70.76 | | | $ | 12,703.5 | | | $ | 64.66 | | | $ | 12,959.4 | | | $ | 67.02 | | | $ | 12,183.3 | | | $ | 61.61 | |
| | | | | | | | | | | | | | | |
Dividends Paid | $ | 141.6 | | | $ | 0.73 | | | $ | 134.4 | | | $ | 0.66 | | | $ | 277.1 | | | $ | 1.39 | | | $ | 255.3 | | | $ | 1.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
Shares Repurchased (millions) | 3.5 | | | 1.1 | | | 6.0 | | | 2.4 | | | 5.7 | | | 5.7 | |
Cost of Shares Repurchased (millions)1 | $ | 179.8 | | | $ | 47.0 | | | $ | 302.8 | | | $ | 100.6 | | | $ | 252.0 | | | $ | 200.1 | |
Price (UNM closing price on last trading day of period) | | | | | $ | 51.11 | | | $ | 47.70 | | | $ | 45.22 | | | $ | 41.03 | |
| | | | | | | | | | | |
Leverage Ratio | | | | | 21.8 | % | | 22.5 | % | | 22.1 | % | | 23.4 | % |
| | | | | | | | | | | |
Holding Company Liquidity (millions) | | | | | $ | 1,281 | | | $ | 1,072 | | | $ | 1,650 | | | $ | 1,571 | |
1Includes commissions of a de minimis amount for the three and six months ended June 30, 2024, $0.1 million for the three and six months ended June 30, 2023, and $0.1 million for the years ended December 31, 2023 and 2022. There was excise tax of $1.7 million and $2.8 million for the three and six months ended June 30, 2024, respectively, $0.4 million and $0.5 million for the three and six months ended June 30, 2023, respectively, $1.9 million for the year ended December 31, 2023, and no excise tax for the year ended December 31, 2022.
Unum Group Ratings
| | | | | | | | | | | | | | | | | | | | | | | |
| AM Best | | Fitch | | Moody's | | S&P |
| | | | | | | |
| | | | | | | |
Outlooks | Stable | | Stable | | Stable | | Stable |
| | | | | | | |
Senior Unsecured Debt Ratings | bbb+ | | BBB | | Baa2 | | BBB |
| | | | | | | |
Financial Strength Ratings | | | | | | | |
Provident Life and Accident Insurance Company | A | | A | | A2 | | A |
Unum Life Insurance Company of America | A | | A | | A2 | | A |
First Unum Life Insurance Company | A | | A | | A2 | | A |
Colonial Life & Accident Insurance Company | A | | A | | A2 | | A |
The Paul Revere Life Insurance Company | A | | A | | A2 | | A |
Unum Insurance Company | A | | A | | A2 | | NR |
Provident Life and Casualty Insurance Company | A | | A | | NR | | NR |
Starmount Life Insurance Company | A | | NR | | NR | | NR |
Unum Limited | NR | | NR | | NR | | A- |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
NR = not rated
Unum Group Consolidated Statements of Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Revenue | | | | | | | | | | | |
Premium Income | $ | 2,627.2 | | | $ | 2,509.1 | | | $ | 5,237.5 | | | $ | 4,968.4 | | | $ | 10,046.0 | | | $ | 9,616.5 | |
Net Investment Income | 545.1 | | | 531.1 | | | 1,058.6 | | | 1,039.9 | | | 2,096.7 | | | 2,122.2 | |
Net Investment Gain (Loss) | (10.4) | | | 0.9 | | | (11.6) | | | 1.0 | | | (36.0) | | | (15.7) | |
Other Income | 71.5 | | | 71.1 | | | 149.2 | | | 139.0 | | | 279.2 | | | 261.1 | |
Total Revenue | 3,233.4 | | | 3,112.2 | | | 6,433.7 | | | 6,148.3 | | | 12,385.9 | | | 11,984.1 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 1,809.5 | | | 1,753.6 | | | 3,594.8 | | | 3,490.0 | | | 7,257.1 | | | 6,994.6 | |
Commissions | 319.1 | | | 286.1 | | | 632.7 | | | 580.0 | | | 1,170.1 | | | 1,086.4 | |
| | | | | | | | | | | |
Interest and Debt Expense | 49.9 | | | 48.9 | | | 99.4 | | | 97.0 | | | 194.8 | | | 188.5 | |
Cost Related to Early Retirement of Debt | — | | | — | | | — | | | — | | | — | | | 4.2 | |
Deferral of Acquisition Costs | (165.1) | | | (156.5) | | | (332.0) | | | (314.2) | | | (632.2) | | | (556.9) | |
Amortization of Deferred Acquisition Costs | 127.9 | | | 113.7 | | | 254.1 | | | 229.6 | | | 481.4 | | | 421.1 | |
| | | | | | | | | | | |
Other Expenses | 596.6 | | | 568.0 | | | 1,193.5 | | | 1,116.2 | | | 2,274.6 | | | 2,096.2 | |
Total Benefits and Expenses | 2,737.9 | | | 2,613.8 | | | 5,442.5 | | | 5,198.6 | | | 10,745.8 | | | 10,234.1 | |
| | | | | | | | | | | |
Income Before Income Tax | 495.5 | | | 498.4 | | | 991.2 | | | 949.7 | | | 1,640.1 | | | 1,750.0 | |
Income Tax Expense | 106.0 | | | 105.5 | | | 206.5 | | | 198.5 | | | 356.3 | | | 342.8 | |
| | | | | | | | | | | |
Net Income | $ | 389.5 | | | $ | 392.9 | | | $ | 784.7 | | | $ | 751.2 | | | $ | 1,283.8 | | | $ | 1,407.2 | |
| | | | | | | | | | | |
Weighted Average Shares Outstanding | | | | | | | | | | | |
Basic | 189.9 | | | 197.2 | | | 191.3 | | | 197.6 | | | 196.7 | | | 200.6 | |
Assuming Dilution | 190.3 | | | 198.1 | | | 191.9 | | | 198.8 | | | 197.6 | | | 202.1 | |
| | | | | | | | | | | |
Actual Number of Shares Outstanding | | | | | 188.1 | | | 196.5 | | | 193.4 | | | 197.8 | |
Unum Group Sales Data for Unum US Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | % Change | | 6/30/2024 | | 6/30/2023 | | % Change | | 12/31/2023 | | 12/31/2022 |
Sales by Product | | | | | | | | | | | | | | | |
Group Disability and Group Life and AD&D | | | | | | | | | | | | | | | |
Group Long-term Disability | $ | 64.8 | | | $ | 65.6 | | | (1.2) | % | | $ | 119.4 | | | $ | 119.5 | | | (0.1) | % | | $ | 292.7 | | | $ | 295.3 | |
Group Short-term Disability | 42.3 | | | 49.6 | | | (14.7) | | | 78.2 | | | 86.6 | | | (9.7) | | | 229.5 | | | 184.3 | |
Group Life and AD&D | 81.9 | | | 88.6 | | | (7.6) | | | 124.7 | | | 127.7 | | | (2.3) | | | 305.4 | | | 232.4 | |
Subtotal | 189.0 | | | 203.8 | | | (7.3) | | | 322.3 | | | 333.8 | | | (3.4) | | | 827.6 | | | 712.0 | |
Supplemental and Voluntary | | | | | | | | | | | | | | | |
Voluntary Benefits | 79.5 | | | 62.6 | | | 27.0 | | | 187.4 | | | 173.5 | | | 8.0 | | | 263.2 | | | 238.7 | |
Individual Disability | 25.5 | | | 28.7 | | | (11.1) | | | 46.7 | | | 55.4 | | | (15.7) | | | 108.9 | | | 90.8 | |
Dental and Vision | 19.2 | | | 19.5 | | | (1.5) | | | 30.9 | | | 28.5 | | | 8.4 | | | 84.1 | | | 73.8 | |
Subtotal | 124.2 | | | 110.8 | | | 12.1 | | | 265.0 | | | 257.4 | | | 3.0 | | | 456.2 | | | 403.3 | |
Total Sales | $ | 313.2 | | | $ | 314.6 | | | (0.4) | | | $ | 587.3 | | | $ | 591.2 | | | (0.7) | | | $ | 1,283.8 | | | $ | 1,115.3 | |
| | | | | | | | | | | | | | | |
Sales by Market Sector | | | | | | | | | | | | | | | |
Group Disability and Group Life and AD&D | | | | | | | | | | | | | | | |
Core Market (< 2,000 employees) | $ | 117.7 | | | $ | 105.3 | | | 11.8 | % | | $ | 195.0 | | | $ | 189.3 | | | 3.0 | % | | $ | 521.3 | | | $ | 457.5 | |
Large Case Market | 71.3 | | | 98.5 | | | (27.6) | | | 127.3 | | | 144.5 | | | (11.9) | | | 306.3 | | | 254.5 | |
Subtotal | 189.0 | | | 203.8 | | | (7.3) | | | 322.3 | | | 333.8 | | | (3.4) | | | 827.6 | | | 712.0 | |
Supplemental and Voluntary | 124.2 | | | 110.8 | | | 12.1 | | | 265.0 | | | 257.4 | | | 3.0 | | | 456.2 | | | 403.3 | |
Total Sales | $ | 313.2 | | | $ | 314.6 | | | (0.4) | | | $ | 587.3 | | | $ | 591.2 | | | (0.7) | | | $ | 1,283.8 | | | $ | 1,115.3 | |
Unum Group Sales Data for Unum International Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
(in millions of dollars) | 6/30/2024 | | 6/30/2023 | | % Change | | 6/30/2024 | | 6/30/2023 | | % Change | | 12/31/2023 | | 12/31/2022 |
Sales by Product | | | | | | | | | | | | | | | |
Unum UK | | | | | | | | | | | | | | | |
Group Long-term Disability | $ | 16.8 | | | $ | 20.9 | | | (19.6) | % | | $ | 31.9 | | | $ | 30.1 | | | 6.0 | % | | $ | 48.3 | | | $ | 43.3 | |
Group Life | 26.2 | | | 23.1 | | | 13.4 | | | 36.1 | | | 39.3 | | | (8.1) | | | 61.4 | | | 55.5 | |
Supplemental | 12.7 | | | 8.3 | | | 53.0 | | | 25.3 | | | 20.2 | | | 25.2 | | | 28.0 | | | 17.1 | |
Unum Poland | 8.6 | | | 8.3 | | | 3.6 | | | 16.6 | | | 16.8 | | | (1.2) | | | 33.2 | | | 17.8 | |
Total Sales | $ | 64.3 | | | $ | 60.6 | | | 6.1 | | | $ | 109.9 | | | $ | 106.4 | | | 3.3 | | | $ | 170.9 | | | $ | 133.7 | |
| | | | | | | | | | | | | | | |
Sales by Market Sector | | | | | | | | | | | | | | | |
Unum UK | | | | | | | | | | | | | | | |
Group Long-term Disability and Group Life | | | | | | | | | | | | | | | |
Core Market (< 500 employees) | $ | 11.4 | | | $ | 16.0 | | | (28.8) | % | | $ | 20.7 | | | $ | 28.5 | | | (27.4) | % | | $ | 51.2 | | | $ | 42.7 | |
Large Case Market | 31.6 | | | 28.0 | | | 12.9 | | | 47.3 | | | 40.9 | | | 15.6 | | | 58.5 | | | 56.1 | |
Subtotal | 43.0 | | | 44.0 | | | (2.3) | | | 68.0 | | | 69.4 | | | (2.0) | | | 109.7 | | | 98.8 | |
Supplemental | 12.7 | | | 8.3 | | | 53.0 | | | 25.3 | | | 20.2 | | | 25.2 | | | 28.0 | | | 17.1 | |
Unum Poland | 8.6 | | | 8.3 | | | 3.6 | | | 16.6 | | | 16.8 | | | (1.2) | | | 33.2 | | | 17.8 | |
Total Sales | $ | 64.3 | | | $ | 60.6 | | | 6.1 | | | $ | 109.9 | | | $ | 106.4 | | | 3.3 | | | $ | 170.9 | | | $ | 133.7 | |
| | | | | | | | | | | | | | | |
(in millions of pounds) | | | | | | | | | | | | | | | |
Unum UK Sales by Product | | | | | | | | | | | | | | | |
Group Long-term Disability | £ | 13.4 | | | £ | 16.8 | | | (20.2) | % | | £ | 25.3 | | | £ | 24.3 | | | 4.1 | % | | £ | 38.8 | | | £ | 34.5 | |
Group Life | 20.8 | | | 18.5 | | | 12.4 | | | 28.6 | | | 31.8 | | | (10.1) | | | 49.4 | | | 45.4 | |
Supplemental | 10.1 | | | 6.6 | | | 53.0 | | | 20.0 | | | 16.4 | | | 22.0 | | | 22.6 | | | 13.5 | |
Total Sales | £ | 44.3 | | | £ | 41.9 | | | 5.7 | | | £ | 73.9 | | | £ | 72.5 | | | 1.9 | | | £ | 110.8 | | | £ | 93.4 | |
| | | | | | | | | | | | | | | |
Unum UK Sales by Market Sector | | | | | | | | | | | | | | | |
Group Long-term Disability and Group Life | | | | | | | | | | | | | | | |
Core Market (< 500 employees) | £ | 9.0 | | | £ | 12.9 | | | (30.2) | % | | £ | 16.4 | | | £ | 23.1 | | | (29.0) | % | | £ | 41.2 | | | £ | 34.4 | |
Large Case Market | 25.2 | | | 22.4 | | | 12.5 | | | 37.5 | | | 33.0 | | | 13.6 | | | 47.0 | | | 45.5 | |
Subtotal | 34.2 | | | 35.3 | | | (3.1) | | | 53.9 | | | 56.1 | | | (3.9) | | | 88.2 | | | 79.9 | |
Supplemental | 10.1 | | | 6.6 | | | 53.0 | | | 20.0 | | | 16.4 | | | 22.0 | | | 22.6 | | | 13.5 | |
Total Sales | £ | 44.3 | | | £ | 41.9 | | | 5.7 | | | £ | 73.9 | | | £ | 72.5 | | | 1.9 | | | £ | 110.8 | | | £ | 93.4 | |
Unum Group Sales Data for Colonial Life Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | % Change | | 6/30/2024 | | 6/30/2023 | | % Change | | 12/31/2023 | | 12/31/2022 |
Sales by Product | | | | | | | | | | | | | | | |
Accident, Sickness, and Disability | $ | 75.8 | | | $ | 74.9 | | | 1.2 | % | | $ | 140.4 | | | $ | 141.4 | | | (0.7) | % | | $ | 329.5 | | | $ | 310.6 | |
Life | 29.8 | | | 30.2 | | | (1.3) | | | 54.6 | | | 56.4 | | | (3.2) | | | 132.1 | | | 121.5 | |
Cancer and Critical Illness | 17.3 | | | 16.9 | | | 2.4 | | | 30.9 | | | 31.0 | | | (0.3) | | | 78.0 | | | 76.0 | |
Total Sales | $ | 122.9 | | | $ | 122.0 | | | 0.7 | | | $ | 225.9 | | | $ | 228.8 | | | (1.3) | | | $ | 539.6 | | | $ | 508.1 | |
| | | | | | | | | | | | | | | |
Sales by Market Sector | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | |
Core Market (< 1,000 employees) | $ | 78.8 | | | $ | 81.0 | | | (2.7) | % | | $ | 150.5 | | | $ | 154.4 | | | (2.5) | % | | $ | 347.4 | | | $ | 332.4 | |
Large Case Market | 12.1 | | | 11.7 | | | 3.4 | | | 21.3 | | | 21.8 | | | (2.3) | | | 62.3 | | | 58.1 | |
Subtotal | 90.9 | | | 92.7 | | | (1.9) | | | 171.8 | | | 176.2 | | | (2.5) | | | 409.7 | | | 390.5 | |
Public Sector | 32.0 | | | 29.3 | | | 9.2 | | | 54.1 | | | 52.6 | | | 2.9 | | | 129.9 | | | 117.6 | |
Total Sales | $ | 122.9 | | | $ | 122.0 | | | 0.7 | | | $ | 225.9 | | | $ | 228.8 | | | (1.3) | | | $ | 539.6 | | | $ | 508.1 | |
Unum Group Consolidated Balance Sheets | | | | | | | | | | | |
| June 30 | | December 31 |
| 2024 | | 2023 |
Assets | | | |
| | | |
Investments | | | |
Fixed Maturity Securities - at fair value | $ | 35,952.8 | | | $ | 36,833.9 | |
Mortgage Loans | 2,261.1 | | | 2,318.2 | |
Policy Loans | 3,535.2 | | | 3,620.2 | |
Other Long-term Investments | 1,646.3 | | | 1,579.4 | |
Short-term Investments | 1,793.5 | | | 1,610.7 | |
Total Investments | 45,188.9 | | | 45,962.4 | |
| | | |
Other Assets | | | |
Cash and Bank Deposits | 132.7 | | | 146.0 | |
Accounts and Premiums Receivable | 1,578.5 | | | 1,543.7 | |
Reinsurance Recoverable | 8,658.9 | | | 9,108.4 | |
Accrued Investment Income | 713.9 | | | 633.9 | |
Deferred Acquisition Costs | 2,791.5 | | | 2,714.5 | |
Goodwill | 349.6 | | | 349.9 | |
Property and Equipment | 483.4 | | | 485.3 | |
Deferred Income Tax | 516.0 | | | 649.4 | |
| | | |
Other Assets | 1,631.0 | | | 1,661.7 | |
| | | |
Total Assets | $ | 62,044.4 | | | $ | 63,255.2 | |
Unum Group Consolidated Balance Sheets - Continued | | | | | | | | | | | |
| June 30 | | December 31 |
| 2024 | | 2023 |
Liabilities and Stockholders' Equity | | | |
| | | |
Liabilities | | | |
Future Policy Benefits | $ | 37,899.4 | | | $ | 40,009.4 | |
Policyholders' Account Balances | 5,660.3 | | | 5,667.7 | |
Unearned Premiums | 502.8 | | | 380.2 | |
Other Policyholders’ Funds | 1,567.2 | | | 1,615.7 | |
Income Tax Payable | 156.4 | | | 190.0 | |
Deferred Income Tax | 27.2 | | | 27.0 | |
| | | |
| | | |
Long-term Debt | 3,470.3 | | | 3,430.4 | |
| | | |
Other Liabilities | 2,296.2 | | | 2,283.4 | |
| | | |
Total Liabilities | 51,579.8 | | | 53,603.8 | |
| | | |
Stockholders’ Equity | | | |
Common Stock | 19.5 | | | 19.4 | |
Additional Paid-in Capital | 1,558.8 | | | 1,547.8 | |
Accumulated Other Comprehensive Loss | (2,846.2) | | | (3,308.0) | |
Retained Earnings | 12,074.6 | | | 11,431.5 | |
Treasury Stock - at cost | (342.1) | | | (39.3) | |
| | | |
Total Stockholders’ Equity | 10,464.6 | | | 9,651.4 | |
| | | |
Total Liabilities and Stockholders’ Equity | $ | 62,044.4 | | | $ | 63,255.2 | |
| | | |
Unum Group Balance Sheets by Segment - June 30, 2024
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unum US | | | | | | | | | | |
| Group Disability | | Group Life and Accidental Death & Dismemberment | | Supplemental and Voluntary | | Total Unum US | | Unum International | | Colonial Life | | Closed Block | | Corporate | | Consolidated |
Assets | | | | | | | | | | | | | | | | | |
Investments | $ | 6,267.3 | | | $ | 1,987.8 | | | $ | 4,590.8 | | | $ | 12,845.9 | | | $ | 3,067.5 | | | $ | 3,182.5 | | | $ | 23,672.4 | | | $ | 2,420.6 | | | $ | 45,188.9 | |
Deferred Acquisition Costs | 67.7 | | | 52.8 | | | 1,136.5 | | | 1,257.0 | | | 49.8 | | | 1,484.7 | | | — | | | — | | | 2,791.5 | |
Goodwill | 8.9 | | | — | | | 271.1 | | | 280.0 | | | 41.9 | | | 27.7 | | | — | | | — | | | 349.6 | |
Reinsurance Recoverable | 35.6 | | | 12.3 | | | 170.1 | | | 218.0 | | | 118.3 | | | 5.5 | | | 8,317.1 | | | — | | | 8,658.9 | |
All Other | 215.2 | | | 190.1 | | | 94.0 | | | 499.3 | | | 98.3 | | | 155.7 | | | 2,319.0 | | | 1,983.2 | | | 5,055.5 | |
Total Assets | $ | 6,594.7 | | | $ | 2,243.0 | | | $ | 6,262.5 | | | $ | 15,100.2 | | | $ | 3,375.8 | | | $ | 4,856.1 | | | $ | 34,308.5 | | | $ | 4,403.8 | | | $ | 62,044.4 | |
| | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | |
Future Policy Benefits | $ | 4,964.3 | | | $ | 865.3 | | | $ | 3,142.8 | | | $ | 8,972.4 | | | $ | 2,185.0 | | | $ | 1,943.6 | | | $ | 24,798.4 | | | $ | — | | | $ | 37,899.4 | |
Policyholders' Account Balances | — | | | — | | | 674.5 | | | 674.5 | | | — | | | 864.4 | | | 4,121.4 | | | — | | | 5,660.3 | |
Unearned Premiums | 3.1 | | | 6.7 | | | 55.7 | | | 65.5 | | | 259.0 | | | 46.2 | | | 132.1 | | | — | | | 502.8 | |
Other Policyholders' Funds | 34.3 | | | 804.1 | | | 27.2 | | | 865.6 | | | 55.5 | | | 11.9 | | | 634.2 | | | — | | | 1,567.2 | |
Debt | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,470.3 | | | 3,470.3 | |
All Other | 34.4 | | | 22.3 | | | 135.8 | | | 192.5 | | | 124.2 | | | 58.9 | | | 526.3 | | | 1,577.9 | | | 2,479.8 | |
Total Liabilities | 5,036.1 | | | 1,698.4 | | | 4,036.0 | | | 10,770.5 | | | 2,623.7 | | | 2,925.0 | | | 30,212.4 | | | 5,048.2 | | | 51,579.8 | |
| | | | | | | | | | | | | | | | | |
Allocated Stockholders' Equity | | | | | | | | | | | | | | | | | |
Other Allocated Stockholders' Equity | 1,524.6 | | | 643.5 | | | 2,279.2 | | | 4,447.3 | | | 757.6 | | | 1,831.9 | | | 5,608.2 | | | (4.3) | | | 12,640.7 | |
| | | | | | | | | | | | | | | | | |
Net Unrealized Loss on Securities and Net Loss on Derivatives | (215.3) | | | (126.4) | | | (213.2) | | | (554.9) | | | (154.1) | | | (146.0) | | | (1,393.3) | | | (640.1) | | | (2,888.4) | |
Effect of Change in Discount Rate Assumptions on the Liability for Future Policy Benefits | 249.3 | | | 27.5 | | | 160.5 | | | 437.3 | | | 148.6 | | | 245.2 | | | (118.8) | | | — | | | 712.3 | |
Total Allocated Stockholders' Equity | 1,558.6 | | | 544.6 | | | 2,226.5 | | | 4,329.7 | | | 752.1 | | | 1,931.1 | | | 4,096.1 | | | (644.4) | | | 10,464.6 | |
| | | | | | | | | | | | | | | | | |
Total Liabilities and Allocated Stockholders' Equity | $ | 6,594.7 | | | $ | 2,243.0 | | | $ | 6,262.5 | | | $ | 15,100.2 | | | $ | 3,375.8 | | | $ | 4,856.1 | | | $ | 34,308.5 | | | $ | 4,403.8 | | | $ | 62,044.4 | |
Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with our target capital levels for regulatory and rating agency purposes. We modify this formula periodically to recognize changes in the views of capital requirements.
Unum Group Balance Sheets by Segment - December 31, 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unum US | | | | | | | | | | |
| Group Disability | | Group Life and Accidental Death & Dismemberment | | Supplemental and Voluntary | | Total Unum US | | Unum International | | Colonial Life | | Closed Block | | Corporate | | Consolidated |
Assets | | | | | | | | | | | | | | | | | |
Investments | $ | 6,621.9 | | | $ | 2,076.6 | | | $ | 4,608.4 | | | $ | 13,306.9 | | | $ | 2,806.7 | | | $ | 3,144.3 | | | $ | 24,067.0 | | | $ | 2,637.5 | | | $ | 45,962.4 | |
Deferred Acquisition Costs | 63.6 | | | 48.9 | | | 1,119.7 | | | 1,232.2 | | | 46.9 | | | 1,435.4 | | | — | | | — | | | 2,714.5 | |
Goodwill | 8.9 | | | — | | | 271.1 | | | 280.0 | | | 42.2 | | | 27.7 | | | — | | | — | | | 349.9 | |
Reinsurance Recoverable | 42.9 | | | 9.0 | | | 174.9 | | | 226.8 | | | 107.2 | | | 5.5 | | | 8,768.9 | | | — | | | 9,108.4 | |
All Other | 124.8 | | | 211.7 | | | 178.7 | | | 515.2 | | | 369.9 | | | 217.5 | | | 2,436.9 | | | 1,580.5 | | | 5,120.0 | |
Total Assets | $ | 6,862.1 | | | $ | 2,346.2 | | | $ | 6,352.8 | | | $ | 15,561.1 | | | $ | 3,372.9 | | | $ | 4,830.4 | | | $ | 35,272.8 | | | $ | 4,218.0 | | | $ | 63,255.2 | |
| | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | |
Future Policy Benefits | $ | 5,200.8 | | | $ | 923.0 | | | $ | 3,295.3 | | | $ | 9,419.1 | | | $ | 2,305.3 | | | $ | 1,997.8 | | | $ | 26,287.2 | | | $ | — | | | $ | 40,009.4 | |
Policyholders' Account Balances | — | | | — | | | 678.1 | | | 678.1 | | | — | | | 869.8 | | | 4,119.8 | | | — | | | 5,667.7 | |
Unearned Premiums | 1.7 | | | 6.3 | | | 46.6 | | | 54.6 | | | 151.4 | | | 44.5 | | | 129.7 | | | — | | | 380.2 | |
Other Policyholders' Funds | 32.3 | | | 813.0 | | | 28.6 | | | 873.9 | | | 66.0 | | | 8.0 | | | 667.8 | | | — | | | 1,615.7 | |
Debt | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,430.4 | | | 3,430.4 | |
All Other | 32.1 | | | 51.2 | | | 152.6 | | | 235.9 | | | 84.4 | | | 60.1 | | | 505.8 | | | 1,614.2 | | | 2,500.4 | |
Total Liabilities | 5,266.9 | | | 1,793.5 | | | 4,201.2 | | | 11,261.6 | | | 2,607.1 | | | 2,980.2 | | | 31,710.3 | | | 5,044.6 | | | 53,603.8 | |
| | | | | | | | | | | | | | | | | |
Allocated Stockholders' Equity | | | | | | | | | | | | | | | | | |
Other Allocated Stockholders' Equity | 1,549.7 | | | 645.1 | | | 2,274.4 | | | 4,469.2 | | | 778.0 | | | 1,799.5 | | | 5,483.5 | | | (237.6) | | | 12,292.6 | |
Net Unrealized Loss on Securities and Net Gain (Loss) on Derivatives | (152.0) | | | (114.2) | | | (159.2) | | | (425.4) | | | (95.5) | | | (108.0) | | | (774.9) | | | (589.0) | | | (1,992.8) | |
Effect of Change in Discount Rate Assumptions on the Liability for Future Policy Benefits | 197.5 | | | 21.8 | | | 36.4 | | | 255.7 | | | 83.3 | | | 158.7 | | | (1,146.1) | | | — | | | (648.4) | |
Total Allocated Stockholders' Equity | 1,595.2 | | | 552.7 | | | 2,151.6 | | | 4,299.5 | | | 765.8 | | | 1,850.2 | | | 3,562.5 | | | (826.6) | | | 9,651.4 | |
| | | | | | | | | | | | | | | | | |
Total Liabilities and Allocated Stockholders' Equity | $ | 6,862.1 | | | $ | 2,346.2 | | | $ | 6,352.8 | | | $ | 15,561.1 | | | $ | 3,372.9 | | | $ | 4,830.4 | | | $ | 35,272.8 | | | $ | 4,218.0 | | | $ | 63,255.2 | |
Unum Group Financial Results by Segment
We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of investment gains or losses, amortization of the cost of reinsurance, the impact of non-contemporaneous reinsurance, and reserve assumption updates as specified in the following pages. Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| 6/30/2024 | | 6/30/2023 | | % Change | | 6/30/2024 | | 6/30/2023 | | % Change |
| | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Unum US | $ | 1,730.9 | | | $ | 1,641.4 | | | 5.5 | % | | $ | 3,438.3 | | | $ | 3,251.0 | | | 5.8 | % |
Unum International | 228.8 | | | 207.9 | | | 10.1 | | | 460.5 | | | 396.5 | | | 16.1 | |
Colonial Life | 446.2 | | | 430.6 | | | 3.6 | | | 893.1 | | | 860.1 | | | 3.8 | |
Closed Block | 221.3 | | | 229.2 | | | (3.4) | | | 445.6 | | | 460.8 | | | (3.3) | |
| 2,627.2 | | | 2,509.1 | | | 4.7 | | | 5,237.5 | | | 4,968.4 | | | 5.4 | |
Net Investment Income | | | | | | | | | | | |
Unum US | 158.1 | | | 158.0 | | | 0.1 | | | 315.1 | | | 315.3 | | | (0.1) | |
Unum International | 38.0 | | | 45.8 | | | (17.0) | | | 64.1 | | | 76.7 | | | (16.4) | |
Colonial Life | 40.5 | | | 38.0 | | | 6.6 | | | 79.8 | | | 75.3 | | | 6.0 | |
Closed Block | 294.2 | | | 263.9 | | | 11.5 | | | 567.3 | | | 521.1 | | | 8.9 | |
Corporate | 14.3 | | | 25.4 | | | (43.7) | | | 32.3 | | | 51.5 | | | (37.3) | |
| 545.1 | | | 531.1 | | | 2.6 | | | 1,058.6 | | | 1,039.9 | | | 1.8 | |
Other Income | | | | | | | | | | | |
Unum US | 58.2 | | | 54.5 | | | 6.8 | | | 118.8 | | | 108.1 | | | 9.9 | |
Unum International | 0.5 | | | 0.1 | | | N.M. | | 0.8 | | | 0.5 | | | 60.0 | |
Colonial Life | 0.2 | | | 0.4 | | | (50.0) | | | 3.2 | | | 0.6 | | | N.M. |
Closed Block | 12.2 | | | 13.8 | | | (11.6) | | | 25.3 | | | 27.3 | | | (7.3) | |
Corporate | 0.4 | | | 2.3 | | | (82.6) | | | 1.1 | | | 2.5 | | | (56.0) | |
| 71.5 | | | 71.1 | | | 0.6 | | | 149.2 | | | 139.0 | | | 7.3 | |
Total Adjusted Operating Revenue | | | | | | | | | | | |
Unum US | 1,947.2 | | | 1,853.9 | | | 5.0 | | | 3,872.2 | | | 3,674.4 | | | 5.4 | |
Unum International | 267.3 | | | 253.8 | | | 5.3 | | | 525.4 | | | 473.7 | | | 10.9 | |
Colonial Life | 486.9 | | | 469.0 | | | 3.8 | | | 976.1 | | | 936.0 | | | 4.3 | |
Closed Block | 527.7 | | | 506.9 | | | 4.1 | | | 1,038.2 | | | 1,009.2 | | | 2.9 | |
Corporate | 14.7 | | | 27.7 | | | (46.9) | | | 33.4 | | | 54.0 | | | (38.1) | |
| $ | 3,243.8 | | | $ | 3,111.3 | | | 4.3 | | | $ | 6,445.3 | | | $ | 6,147.3 | | | 4.8 | |
Unum Group Financial Results by Segment - Continued
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| 6/30/2024 | | 6/30/2023 | | % Change | | 6/30/2024 | | 6/30/2023 | | % Change |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
Unum US | $ | 1,589.7 | | | $ | 1,510.8 | | | 5.2 | % | | $ | 3,129.5 | | | $ | 3,018.8 | | | 3.7 | % |
Unum International | 224.8 | | | 210.3 | | | 6.9 | | | 445.5 | | | 391.8 | | | 13.7 | |
Colonial Life | 370.0 | | | 353.5 | | | 4.7 | | | 745.5 | | | 726.6 | | | 2.6 | |
Closed Block | 493.4 | | | 476.6 | | | 3.5 | | | 997.2 | | | 939.0 | | | 6.2 | |
Corporate | 60.0 | | | 62.6 | | | (4.2) | | | 124.8 | | | 122.4 | | | 2.0 | |
| 2,737.9 | | | 2,613.8 | | | 4.7 | | | 5,442.5 | | | 5,198.6 | | | 4.7 | |
| | | | | | | | | | | |
Income (Loss) Before Income Tax and Net Investment Gain (Loss) | | | | | | | | | | | |
Unum US | 357.5 | | | 343.1 | | | 4.2 | | | 742.7 | | | 655.6 | | | 13.3 | |
Unum International | 42.5 | | | 43.5 | | | (2.3) | | | 79.9 | | | 81.9 | | | (2.4) | |
Colonial Life | 116.9 | | | 115.5 | | | 1.2 | | | 230.6 | | | 209.4 | | | 10.1 | |
Closed Block | 34.3 | | | 30.3 | | | 13.2 | | | 41.0 | | | 70.2 | | | (41.6) | |
Corporate | (45.3) | | | (34.9) | | | 29.8 | | | (91.4) | | | (68.4) | | | 33.6 | |
| 505.9 | | | 497.5 | | | 1.7 | | | 1,002.8 | | | 948.7 | | | 5.7 | |
| | | | | | | | | | | |
Income Tax Expense | 108.2 | | | 105.3 | | | 2.8 | | | 209.1 | | | 198.3 | | | 5.4 | |
| | | | | | | | | | | |
Income Before Net Investment Gain (Loss) | 397.7 | | | 392.2 | | | 1.4 | | | 793.7 | | | 750.4 | | | 5.8 | |
| | | | | | | | | | | |
Net Investment Gain (Loss) (net of tax expense (benefit) of $(2.2); $0.2; $(2.6); $0.2) | (8.2) | | | 0.7 | | | N.M. | | (9.0) | | | 0.8 | | | N.M. |
| | | | | | | | | | | |
Net Income | $ | 389.5 | | | $ | 392.9 | | | (0.9) | | | $ | 784.7 | | | $ | 751.2 | | | 4.5 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Unum Group Quarterly Historical Financial Results by Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | | | | | | | |
| | | | | | | | | | | | | |
Premium Income | | | | | | | | | | | | | | | | | | | |
Unum US | $ | 1,730.9 | | | $ | 1,707.4 | | | $ | 1,670.5 | | | $ | 1,657.7 | | | $ | 1,641.4 | | | $ | 1,609.6 | | | | | | | | | |
Unum International | 228.8 | | | 231.7 | | | 218.1 | | | 210.6 | | | 207.9 | | | 188.6 | | | | | | | | | |
Colonial Life | 446.2 | | | 446.9 | | | 434.8 | | | 431.2 | | | 430.6 | | | 429.5 | | | | | | | | | |
Closed Block | 221.3 | | | 224.3 | | | 228.3 | | | 226.4 | | | 229.2 | | | 231.6 | | | | | | | | | |
| 2,627.2 | | | 2,610.3 | | | 2,551.7 | | | 2,525.9 | | | 2,509.1 | | | 2,459.3 | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | |
Unum US | 158.1 | | | 157.0 | | | 158.4 | | | 166.2 | | | 158.0 | | | 157.3 | | | | | | | | | |
Unum International | 38.0 | | | 26.1 | | | 33.2 | | | 27.3 | | | 45.8 | | | 30.9 | | | | | | | | | |
Colonial Life | 40.5 | | | 39.3 | | | 38.9 | | | 39.3 | | | 38.0 | | | 37.3 | | | | | | | | | |
Closed Block | 294.2 | | | 273.1 | | | 270.3 | | | 274.9 | | | 263.9 | | | 257.2 | | | | | | | | | |
Corporate | 14.3 | | | 18.0 | | | 30.0 | | | 18.3 | | | 25.4 | | | 26.1 | | | | | | | | | |
| 545.1 | | | 513.5 | | | 530.8 | | | 526.0 | | | 531.1 | | | 508.8 | | | | | | | | | |
Other Income | | | | | | | | | | | | | | | | | | | |
Unum US | 58.2 | | | 60.6 | | | 54.4 | | | 58.0 | | | 54.5 | | | 53.6 | | | | | | | | | |
Unum International | 0.5 | | | 0.3 | | | 0.6 | | | 0.5 | | | 0.1 | | | 0.4 | | | | | | | | | |
Colonial Life | 0.2 | | | 3.0 | | | 0.3 | | | 0.3 | | | 0.4 | | | 0.2 | | | | | | | | | |
Closed Block | 12.2 | | | 13.1 | | | 12.5 | | | 12.8 | | | 13.8 | | | 13.5 | | | | | | | | | |
Corporate | 0.4 | | | 0.7 | | | 0.8 | | | — | | | 2.3 | | | 0.2 | | | | | | | | | |
| 71.5 | | | 77.7 | | | 68.6 | | | 71.6 | | | 71.1 | | | 67.9 | | | | | | | | | |
Total Adjusted Operating Revenue | | | | | | | | | | | | | | | | | | | |
Unum US | 1,947.2 | | | 1,925.0 | | | 1,883.3 | | | 1,881.9 | | | 1,853.9 | | | 1,820.5 | | | | | | | | | |
Unum International | 267.3 | | | 258.1 | | | 251.9 | | | 238.4 | | | 253.8 | | | 219.9 | | | | | | | | | |
Colonial Life | 486.9 | | | 489.2 | | | 474.0 | | | 470.8 | | | 469.0 | | | 467.0 | | | | | | | | | |
Closed Block | 527.7 | | | 510.5 | | | 511.1 | | | 514.1 | | | 506.9 | | | 502.3 | | | | | | | | | |
Corporate | 14.7 | | | 18.7 | | | 30.8 | | | 18.3 | | | 27.7 | | | 26.3 | | | | | | | | | |
| $ | 3,243.8 | | | $ | 3,201.5 | | | $ | 3,151.1 | | | $ | 3,123.5 | | | $ | 3,111.3 | | | $ | 3,036.0 | | | | | | | | | |
Unum Group Quarterly Historical Financial Results by Segment - Continued
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | | | | | | | |
| | | | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | | | | | | | | | |
Unum US | $ | 1,589.7 | | | $ | 1,539.8 | | | $ | 1,541.2 | | | $ | 1,395.3 | | | $ | 1,510.8 | | | $ | 1,508.0 | | | | | | | | | |
Unum International | 224.8 | | | 220.7 | | | 212.5 | | | 219.5 | | | 210.3 | | | 181.5 | | | | | | | | | |
Colonial Life | 370.0 | | | 375.5 | | | 386.2 | | | 287.2 | | | 353.5 | | | 373.1 | | | | | | | | | |
Closed Block | 493.4 | | | 503.8 | | | 509.2 | | | 869.0 | | | 476.6 | | | 462.4 | | | | | | | | | |
Corporate | 60.0 | | | 64.8 | | | 67.3 | | | 59.8 | | | 62.6 | | | 59.8 | | | | | | | | | |
| 2,737.9 | | | 2,704.6 | | | 2,716.4 | | | 2,830.8 | | | 2,613.8 | | | 2,584.8 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Income (Loss) Before Income Tax and Net Investment Gain (Loss) | | | | | | | | | | | | | | | | | | |
Unum US | 357.5 | | | 385.2 | | | 342.1 | | | 486.6 | | | 343.1 | | | 312.5 | | | | | | | | | |
Unum International | 42.5 | | | 37.4 | | | 39.4 | | | 18.9 | | | 43.5 | | | 38.4 | | | | | | | | | |
Colonial Life | 116.9 | | | 113.7 | | | 87.8 | | | 183.6 | | | 115.5 | | | 93.9 | | | | | | | | | |
Closed Block | 34.3 | | | 6.7 | | | 1.9 | | | (354.9) | | | 30.3 | | | 39.9 | | | | | | | | | |
Corporate | (45.3) | | | (46.1) | | | (36.5) | | | (41.5) | | | (34.9) | | | (33.5) | | | | | | | | | |
| 505.9 | | | 496.9 | | | 434.7 | | | 292.7 | | | 497.5 | | | 451.2 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Income Tax Expense | 108.2 | | | 100.9 | | | 99.5 | | | 66.3 | | | 105.3 | | | 93.0 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Income Before Net Investment Gain (Loss) | 397.7 | | | 396.0 | | | 335.2 | | | 226.4 | | | 392.2 | | | 358.2 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Net Investment Gain (Loss) | (10.4) | | | (1.2) | | | (6.0) | | | (31.0) | | | 0.9 | | | 0.1 | | | | | | | | | |
Tax Expense (Benefit) on Net Investment Gain (Loss) | (2.2) | | | (0.4) | | | (1.4) | | | (6.6) | | | 0.2 | | | — | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Net Income | $ | 389.5 | | | $ | 395.2 | | | $ | 330.6 | | | $ | 202.0 | | | $ | 392.9 | | | $ | 358.3 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Net Income Per Common Share - Assuming Dilution | $ | 2.05 | | | $ | 2.04 | | | $ | 1.69 | | | $ | 1.02 | | | $ | 1.98 | | | $ | 1.80 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Unum Group Financial Results for Unum US Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | $ | 1,730.9 | | | $ | 1,641.4 | | | $ | 3,438.3 | | | $ | 3,251.0 | | | $ | 6,579.2 | | | $ | 6,251.4 | |
Net Investment Income | 158.1 | | | 158.0 | | | 315.1 | | | 315.3 | | | 639.9 | | | 676.3 | |
Other Income | 58.2 | | | 54.5 | | | 118.8 | | | 108.1 | | | 220.5 | | | 196.3 | |
Total | 1,947.2 | | | 1,853.9 | | | 3,872.2 | | | 3,674.4 | | | 7,439.6 | | | 7,124.0 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 1,006.6 | | | 983.9 | | | 1,975.9 | | | 1,962.3 | | | 3,808.5 | | | 3,970.9 | |
Commissions | 187.1 | | | 160.5 | | | 369.3 | | | 329.4 | | | 664.4 | | | 614.4 | |
Deferral of Acquisition Costs | (82.5) | | | (77.1) | | | (165.8) | | | (156.1) | | | (314.7) | | | (273.1) | |
Amortization of Deferred Acquisition Costs | 71.2 | | | 63.4 | | | 141.0 | | | 129.2 | | | 267.6 | | | 240.9 | |
Other Expenses | 407.3 | | | 380.1 | | | 809.1 | | | 754.0 | | | 1,529.5 | | | 1,427.5 | |
Total | 1,589.7 | | | 1,510.8 | | | 3,129.5 | | | 3,018.8 | | | 5,955.3 | | | 5,980.6 | |
| | | | | | | | | | | |
Income Before Income Tax and Net Investment Gains and Losses | 357.5 | | | 343.1 | | | 742.7 | | | 655.6 | | | 1,484.3 | | | 1,143.4 | |
Reserve Assumption Updates | — | | | — | | | — | | | — | | | (128.8) | | | (170.8) | |
Adjusted Operating Income | $ | 357.5 | | | $ | 343.1 | | | $ | 742.7 | | | $ | 655.6 | | | $ | 1,355.5 | | | $ | 972.6 | |
| | | | | | | | | | | |
Operating Ratios (% of Premium Income): | | | | | | | | | | | |
Benefit Ratio1 | 58.2 | % | | 59.9 | % | | 57.5 | % | | 60.4 | % | | 59.8 | % | | 66.3 | % |
| | | | | | | | | | | |
Other Expense Ratio2 | 22.8 | % | | 22.4 | % | | 22.8 | % | | 22.5 | % | | 22.5 | % | | 22.2 | % |
Income Ratio | | | | | | | | | 22.6 | % | | 18.3 | % |
Adjusted Operating Income Ratio | 20.7 | % | | 20.9 | % | | 21.6 | % | | 20.2 | % | | 20.6 | % | | 15.6 | % |
| | | | | | | | | | | |
1Excludes the reserve assumption updates that occurred during the third quarters of 2023 and 2022. |
2Ratio of Other Expenses to Premium Income plus Unum US Group Disability Other Income, which is primarily related to fee-based services. |
Unum Group Financial Results for Unum US Group Disability
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Group Long-term Disability | $ | 521.5 | | | $ | 516.1 | | | $ | 1,038.2 | | | $ | 1,020.8 | | | $ | 2,057.2 | | | $ | 1,911.7 | |
Group Short-term Disability | 276.3 | | | 256.2 | | | 539.4 | | | 496.5 | | | 1,012.3 | | | 926.3 | |
Total Premium Income | 797.8 | | | 772.3 | | | 1,577.6 | | | 1,517.3 | | | 3,069.5 | | | 2,838.0 | |
Net Investment Income | 78.3 | | | 81.1 | | | 156.1 | | | 162.2 | | | 324.8 | | | 349.1 | |
Other Income | 57.5 | | | 53.8 | | | 116.2 | | | 106.4 | | | 211.6 | | | 191.8 | |
Total | 933.6 | | | 907.2 | | | 1,849.9 | | | 1,785.9 | | | 3,605.9 | | | 3,378.9 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 471.7 | | | 458.6 | | | 920.3 | | | 905.6 | | | 1,693.2 | | | 1,782.4 | |
Commissions | 62.3 | | | 57.0 | | | 124.1 | | | 115.4 | | | 230.5 | | | 211.3 | |
Deferral of Acquisition Costs | (16.2) | | | (15.8) | | | (32.7) | | | (30.4) | | | (60.2) | | | (53.1) | |
Amortization of Deferred Acquisition Costs | 14.2 | | | 12.8 | | | 28.6 | | | 25.9 | | | 57.6 | | | 53.0 | |
Other Expenses | 248.4 | | | 234.8 | | | 491.6 | | | 463.9 | | | 936.1 | | | 862.3 | |
Total | 780.4 | | | 747.4 | | | 1,531.9 | | | 1,480.4 | | | 2,857.2 | | | 2,855.9 | |
| | | | | | | | | | | |
Income Before Income Tax and Net Investment Gains and Losses | 153.2 | | | 159.8 | | | 318.0 | | | 305.5 | | | 748.7 | | | 523.0 | |
Reserve Assumption Updates | — | | | — | | | — | | | — | | | (121.0) | | | (121.0) | |
Adjusted Operating Income | $ | 153.2 | | | $ | 159.8 | | | $ | 318.0 | | | $ | 305.5 | | | $ | 627.7 | | | $ | 402.0 | |
| | | | | | | | | | | |
Operating Ratios (% of Premium Income): | | | | | | | | | | | |
Benefit Ratio1 | 59.1 | % | | 59.4 | % | | 58.3 | % | | 59.7 | % | | 59.1 | % | | 67.1 | % |
Other Expense Ratio2 | 29.0 | % | | 28.4 | % | | 29.0 | % | | 28.6 | % | | 28.5 | % | | 28.5 | % |
Income Ratio | | | | | | | | | 24.4 | % | | 18.4 | % |
Adjusted Operating Income Ratio | 19.2 | % | | 20.7 | % | | 20.2 | % | | 20.1 | % | | 20.4 | % | | 14.2 | % |
| | | | | | | | | | | |
Persistency: | | | | | | | | | | | |
Group Long-term Disability | | | | | 93.1 | % | | 91.0 | % | | 90.8 | % | | 90.7 | % |
Group Short-term Disability | | | | | 91.8 | % | | 88.6 | % | | 88.9 | % | | 88.9 | % |
| | | | | | | | | | | |
1Excludes the reserve assumption updates that occurred during the third quarters of 2023 and 2022. |
2Ratio of Other Expenses to Premium Income plus Other Income, which is primarily related to fee-based services. |
Unum Group Financial Results for Unum US Group Life and Accidental Death & Dismemberment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Group Life | $ | 447.5 | | | $ | 418.2 | | | $ | 890.1 | | | $ | 831.3 | | | $ | 1,679.0 | | | $ | 1,669.1 | |
Accidental Death & Dismemberment | 46.4 | | | 43.6 | | | 92.2 | | | 87.1 | | | 175.5 | | | 173.7 | |
Total Premium Income | 493.9 | | | 461.8 | | | 982.3 | | | 918.4 | | | 1,854.5 | | | 1,842.8 | |
Net Investment Income | 22.5 | | | 21.9 | | | 44.5 | | | 44.5 | | | 90.1 | | | 100.3 | |
Other Income | 0.1 | | | 0.1 | | | 1.1 | | | 0.5 | | | 1.0 | | | 1.6 | |
Total | 516.5 | | | 483.8 | | | 1,027.9 | | | 963.4 | | | 1,945.6 | | | 1,944.7 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 323.1 | | | 336.9 | | | 656.3 | | | 679.2 | | | 1,347.7 | | | 1,415.9 | |
Commissions | 42.7 | | | 38.3 | | | 84.4 | | | 78.0 | | | 155.9 | | | 150.4 | |
Deferral of Acquisition Costs | (10.5) | | | (10.1) | | | (21.0) | | | (19.9) | | | (38.6) | | | (37.3) | |
Amortization of Deferred Acquisition Costs | 10.2 | | | 9.5 | | | 17.1 | | | 19.3 | | | 39.0 | | | 41.9 | |
Other Expenses | 61.9 | | | 57.6 | | | 123.2 | | | 115.1 | | | 229.9 | | | 231.1 | |
Total | 427.4 | | | 432.2 | | | 860.0 | | | 871.7 | | | 1,733.9 | | | 1,802.0 | |
| | | | | | | | | | | |
Income Before Income Tax and Net Investment Gains and Losses | 89.1 | | | 51.6 | | | 167.9 | | | 91.7 | | | 211.7 | | | 142.7 | |
Reserve Assumption Update | — | | | — | | | — | | | — | | | — | | | (34.0) | |
Adjusted Operating Income | $ | 89.1 | | | $ | 51.6 | | | $ | 167.9 | | | $ | 91.7 | | | $ | 211.7 | | | $ | 108.7 | |
| | | | | | | | | | | |
Operating Ratios (% of Premium Income): | | | | | | | | | | | |
Benefit Ratio1 | 65.4 | % | | 73.0 | % | | 66.8 | % | | 74.0 | % | | 72.7 | % | | 78.7 | % |
Other Expense Ratio | 12.5 | % | | 12.5 | % | | 12.5 | % | | 12.5 | % | | 12.4 | % | | 12.5 | % |
Income Ratio | | | | | | | | | | | 7.7 | % |
Adjusted Operating Income Ratio | 18.0 | % | | 11.2 | % | | 17.1 | % | | 10.0 | % | | 11.4 | % | | 5.9 | % |
| | | | | | | | | | | |
Persistency: | | | | | | | | | | | |
Group Life | | | | | 92.1 | % | | 89.3 | % | | 89.6 | % | | 88.9 | % |
Accidental Death & Dismemberment | | | | | 91.6 | % | | 88.1 | % | | 88.7 | % | | 87.9 | % |
| | | | | | | | | | | |
1Excludes the reserve assumption update that occurred during the third quarter of 2022. |
Unum Group Financial Results for Unum US Supplemental and Voluntary
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Voluntary Benefits | $ | 222.9 | | | $ | 213.4 | | | $ | 445.8 | | | $ | 427.9 | | | $ | 850.1 | | | $ | 833.7 | |
Individual Disability | 142.2 | | | 125.8 | | | 284.2 | | | 250.0 | | | 527.0 | | | 461.1 | |
Dental and Vision | 74.1 | | | 68.1 | | | 148.4 | | | 137.4 | | | 278.1 | | | 275.8 | |
Total Premium Income | 439.2 | | | 407.3 | | | 878.4 | | | 815.3 | | | 1,655.2 | | | 1,570.6 | |
Net Investment Income | 57.3 | | | 55.0 | | | 114.5 | | | 108.6 | | | 225.0 | | | 226.9 | |
Other Income | 0.6 | | | 0.6 | | | 1.5 | | | 1.2 | | | 7.9 | | | 2.9 | |
Total | 497.1 | | | 462.9 | | | 994.4 | | | 925.1 | | | 1,888.1 | | | 1,800.4 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 211.8 | | | 188.4 | | | 399.3 | | | 377.5 | | | 767.6 | | | 772.6 | |
Commissions | 82.1 | | | 65.2 | | | 160.8 | | | 136.0 | | | 278.0 | | | 252.7 | |
Deferral of Acquisition Costs | (55.8) | | | (51.2) | | | (112.1) | | | (105.8) | | | (215.9) | | | (182.7) | |
Amortization of Deferred Acquisition Costs | 46.8 | | | 41.1 | | | 95.3 | | | 84.0 | | | 171.0 | | | 146.0 | |
Other Expenses | 97.0 | | | 87.7 | | | 194.3 | | | 175.0 | | | 363.5 | | | 334.1 | |
Total | 381.9 | | | 331.2 | | | 737.6 | | | 666.7 | | | 1,364.2 | | | 1,322.7 | |
| | | | | | | | | | | |
Income Before Income Tax and Net Investment Gains and Losses | 115.2 | | | 131.7 | | | 256.8 | | | 258.4 | | | 523.9 | | | 477.7 | |
Reserve Assumption Updates - Voluntary Benefits | — | | | — | | | — | | | — | | | (10.4) | | | (17.0) | |
Reserve Assumption Updates - Individual Disability | — | | | — | | | — | | | — | | | 2.6 | | | 1.2 | |
Adjusted Operating Income | $ | 115.2 | | | $ | 131.7 | | | $ | 256.8 | | | $ | 258.4 | | | $ | 516.1 | | | $ | 461.9 | |
| | | | | | | | | | | |
Operating Ratios (% of Premium Income): | | | | | | | | | | | |
Benefit Ratios: | | | | | | | | | | | |
Voluntary Benefits1 | 45.1 | % | | 39.2 | % | | 39.5 | % | | 37.6 | % | | 39.8 | % | | 43.6 | % |
Individual Disability1 | 39.0 | % | | 42.1 | % | | 40.0 | % | | 43.7 | % | | 44.3 | % | | 49.3 | % |
| | | | | | | | | | | |
Dental and Vision | 75.3 | % | | 76.2 | % | | 73.9 | % | | 78.2 | % | | 73.1 | % | | 71.6 | % |
Other Expense Ratio | 22.1 | % | | 21.5 | % | | 22.1 | % | | 21.5 | % | | 22.0 | % | | 21.3 | % |
Income Ratio | | | | | | | | | 31.7 | % | | 30.4 | % |
Adjusted Operating Income Ratio | 26.2 | % | | 32.3 | % | | 29.2 | % | | 31.7 | % | | 31.2 | % | | 29.4 | % |
| | | | | | | | | | | |
Persistency: | | | | | | | | | | | |
Voluntary Benefits | | | | | 76.3 | % | | 74.4 | % | | 75.5 | % | | 75.8 | % |
Individual Disability | | | | | 89.0 | % | | 89.3 | % | | 89.0 | % | | 89.5 | % |
Dental and Vision | | | | | 81.1 | % | | 76.1 | % | | 77.1 | % | | 79.9 | % |
| | | | | | | | | | | |
1Excludes the reserve assumption updates that occurred during the third quarters of 2023 and 2022. |
Unum Group Financial Results for Unum International Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Unum UK | | | | | | | | | | | |
Group Long-term Disability | $ | 102.3 | | | $ | 104.7 | | | $ | 205.8 | | | $ | 196.4 | | | $ | 396.1 | | | $ | 376.9 | |
Group Life | 48.8 | | | 41.1 | | | 97.5 | | | 80.3 | | | 169.3 | | | 138.2 | |
Supplemental | 40.6 | | | 33.5 | | | 83.7 | | | 65.3 | | | 141.5 | | | 114.0 | |
Unum Poland | 37.1 | | | 28.6 | | | 73.5 | | | 54.5 | | | 118.3 | | | 89.7 | |
Total Premium Income | 228.8 | | | 207.9 | | | 460.5 | | | 396.5 | | | 825.2 | | | 718.8 | |
Net Investment Income | 38.0 | | | 45.8 | | | 64.1 | | | 76.7 | | | 137.2 | | | 170.1 | |
Other Income | 0.5 | | | 0.1 | | | 0.8 | | | 0.5 | | | 1.6 | | | 0.9 | |
Total | 267.3 | | | 253.8 | | | 525.4 | | | 473.7 | | | 964.0 | | | 889.8 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 156.2 | | | 147.3 | | | 312.1 | | | 274.8 | | | 579.8 | | | 549.6 | |
Commissions | 20.4 | | | 18.9 | | | 40.0 | | | 35.5 | | | 72.5 | | | 56.3 | |
Deferral of Acquisition Costs | (4.3) | | | (3.5) | | | (8.6) | | | (7.0) | | | (14.6) | | | (12.0) | |
Amortization of Deferred Acquisition Costs | 2.4 | | | 1.9 | | | 4.8 | | | 3.7 | | | 8.4 | | | 8.2 | |
Other Expenses | 50.1 | | | 45.7 | | | 97.2 | | | 84.8 | | | 177.7 | | | 146.1 | |
Total | 224.8 | | | 210.3 | | | 445.5 | | | 391.8 | | | 823.8 | | | 748.2 | |
| | | | | | | | | | | |
Income Before Income Tax and Net Investment Gains and Losses | 42.5 | | | 43.5 | | | 79.9 | | | 81.9 | | | 140.2 | | | 141.6 | |
Reserve Assumption Updates | — | | | — | | | — | | | — | | | 17.9 | | | (7.6) | |
Adjusted Operating Income | $ | 42.5 | | | $ | 43.5 | | | $ | 79.9 | | | $ | 81.9 | | | $ | 158.1 | | | $ | 134.0 | |
Unum Group Financial Results for Unum UK
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
(in millions of pounds) | 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Group Long-term Disability | £ | 81.0 | | | £ | 83.6 | | | £ | 162.6 | | | £ | 159.1 | | | £ | 318.5 | | | £ | 304.6 | |
Group Life | 38.7 | | | 32.8 | | | 77.1 | | | 65.1 | | | 136.1 | | | 112.3 | |
Supplemental | 32.1 | | | 26.7 | | | 66.1 | | | 52.8 | | | 113.7 | | | 92.3 | |
Total Premium Income | 151.8 | | | 143.1 | | | 305.8 | | | 277.0 | | | 568.3 | | | 509.2 | |
Net Investment Income | 27.9 | | | 34.5 | | | 46.3 | | | 58.2 | | | 102.4 | | | 131.9 | |
Other Income | — | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.2 | | | 0.1 | |
Total | 179.7 | | | 177.7 | | | 352.2 | | | 335.3 | | | 670.9 | | | 641.2 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 105.5 | | | 103.5 | | | 210.3 | | | 195.2 | | | 408.5 | | | 398.4 | |
Commissions | 9.7 | | | 10.1 | | | 19.1 | | | 19.0 | | | 37.4 | | | 31.8 | |
Deferral of Acquisition Costs | (0.9) | | | (1.1) | | | (2.0) | | | (2.1) | | | (3.9) | | | (4.2) | |
Amortization of Deferred Acquisition Costs | 1.4 | | | 1.4 | | | 2.8 | | | 2.5 | | | 5.2 | | | 5.3 | |
Other Expenses | 31.5 | | | 29.5 | | | 61.3 | | | 55.4 | | | 115.4 | | | 95.6 | |
Total | 147.2 | | | 143.4 | | | 291.5 | | | 270.0 | | | 562.6 | | | 526.9 | |
| | | | | | | | | | | |
Income Before Income Tax and Net Investment Gains and Losses | 32.5 | | | 34.3 | | | 60.7 | | | 65.3 | | | 108.3 | | | 114.3 | |
Reserve Assumption Updates | — | | | — | | | — | | | — | | | 16.3 | | | (5.3) | |
Adjusted Operating Income | £ | 32.5 | | | £ | 34.3 | | | £ | 60.7 | | | £ | 65.3 | | | £ | 124.6 | | | £ | 109.0 | |
| | | | | | | | | | | |
Weighted Average Pound/Dollar Exchange Rate | 1.265 | | | 1.257 | | | 1.265 | | | 1.236 | | | 1.243 | | | 1.221 | |
| | | | | | | | | | | |
Operating Ratios (% of Premium Income): | | | | | | | | | | | |
Benefit Ratio1 | 69.5 | % | | 72.3 | % | | 68.8 | % | | 70.5 | % | | 69.0 | % | | 79.3 | % |
Other Expense Ratio | 20.8 | % | | 20.6 | % | | 20.0 | % | | 20.0 | % | | 20.3 | % | | 18.8 | % |
Income Ratio | | | | | | | | | 19.1 | % | | 22.4 | % |
Adjusted Operating Income Ratio | 21.4 | % | | 24.0 | % | | 19.8 | % | | 23.6 | % | | 21.9 | % | | 21.4 | % |
| | | | | | | | | | | |
Persistency: | | | | | | | | | | | |
Group Long-term Disability | | | | | 92.7 | % | | 90.9 | % | | 92.5 | % | | 85.1 | % |
Group Life | | | | | 88.2 | % | | 82.6 | % | | 83.0 | % | | 87.9 | % |
Supplemental | | | | | 89.4 | % | | 90.0 | % | | 91.7 | % | | 92.8 | % |
| | | | | | | | | | | |
1Excludes the reserve assumption updates that occurred during the third quarters of 2023 and 2022. |
Unum Group Financial Results for Colonial Life Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Accident, Sickness, and Disability | $ | 241.7 | | | $ | 235.6 | | | $ | 484.9 | | | $ | 471.3 | | | $ | 946.1 | | | $ | 948.9 | |
Life | 115.2 | | | 106.6 | | | 229.5 | | | 211.9 | | | 426.5 | | | 401.1 | |
Cancer and Critical Illness | 89.3 | | | 88.4 | | | 178.7 | | | 176.9 | | | 353.5 | | | 352.0 | |
Total Premium Income | 446.2 | | | 430.6 | | | 893.1 | | | 860.1 | | | 1,726.1 | | | 1,702.0 | |
Net Investment Income | 40.5 | | | 38.0 | | | 79.8 | | | 75.3 | | | 153.5 | | | 152.7 | |
Other Income | 0.2 | | | 0.4 | | | 3.2 | | | 0.6 | | | 1.2 | | | 1.1 | |
Total | 486.9 | | | 469.0 | | | 976.1 | | | 936.0 | | | 1,880.8 | | | 1,855.8 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 213.4 | | | 208.0 | | | 430.5 | | | 435.7 | | | 798.1 | | | 826.1 | |
Commissions | 94.0 | | | 88.6 | | | 189.2 | | | 177.9 | | | 359.4 | | | 340.0 | |
Deferral of Acquisition Costs | (78.3) | | | (75.9) | | | (157.6) | | | (151.1) | | | (302.9) | | | (271.8) | |
Amortization of Deferred Acquisition Costs | 54.3 | | | 48.4 | | | 108.3 | | | 96.7 | | | 205.4 | | | 172.0 | |
Other Expenses | 86.6 | | | 84.4 | | | 175.1 | | | 167.4 | | | 340.0 | | | 321.4 | |
Total | 370.0 | | | 353.5 | | | 745.5 | | | 726.6 | | | 1,400.0 | | | 1,387.7 | |
| | | | | | | | | | | |
Income Before Income Tax and Net Investment Gains and Losses | 116.9 | | | 115.5 | | | 230.6 | | | 209.4 | | | 480.8 | | | 468.1 | |
Reserve Assumption Updates | — | | | — | | | — | | | — | | | (80.7) | | | (55.2) | |
Adjusted Operating Income | $ | 116.9 | | | $ | 115.5 | | | $ | 230.6 | | | $ | 209.4 | | | $ | 400.1 | | | $ | 412.9 | |
| | | | | | | | | | | |
Operating Ratios (% of Premium Income): | | | | | | | | | | | |
Benefit Ratio1 | 47.8 | % | | 48.3 | % | | 48.2 | % | | 50.7 | % | | 50.9 | % | | 51.8 | % |
| | | | | | | | | | | |
Other Expense Ratio | 19.4 | % | | 19.6 | % | | 19.6 | % | | 19.5 | % | | 19.7 | % | | 18.9 | % |
Income Ratio | | | | | | | | | 27.9 | % | | 27.5 | % |
Adjusted Operating Income Ratio | 26.2 | % | | 26.8 | % | | 25.8 | % | | 24.3 | % | | 23.2 | % | | 24.3 | % |
| | | | | | | | | | | |
Persistency: | | | | | | | | | | | |
Accident, Sickness, and Disability | | | | | 73.4 | % | | 72.7 | % | | 73.6 | % | | 73.3 | % |
Life | | | | | 84.8 | % | | 84.2 | % | | 85.1 | % | | 84.5 | % |
Cancer and Critical Illness | | | | | 82.0 | % | | 82.0 | % | | 82.4 | % | | 82.3 | % |
| | | | | | | | | | | |
1Excludes the reserve assumption updates that occurred during the third quarters of 2023 and 2022. |
Unum Group Financial Results for Closed Block Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
| | | | | | | | | |
Adjusted Operating Revenue | | | | | | | | | | | |
Premium Income | | | | | | | | | | | |
Long-term Care | $ | 173.3 | | | $ | 174.0 | | | $ | 347.8 | | | $ | 349.1 | | | $ | 696.0 | | | $ | 697.4 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
All Other | 48.0 | | | 55.2 | | | 97.8 | | | 111.7 | | | 219.5 | | | 246.9 | |
Total Premium Income | 221.3 | | | 229.2 | | | 445.6 | | | 460.8 | | | 915.5 | | | 944.3 | |
Net Investment Income | 294.2 | | | 263.9 | | | 567.3 | | | 521.1 | | | 1,066.3 | | | 1,070.6 | |
Other Income | 12.2 | | | 13.8 | | | 25.3 | | | 27.3 | | | 52.6 | | | 58.0 | |
Total | 527.7 | | | 506.9 | | | 1,038.2 | | | 1,009.2 | | | 2,034.4 | | | 2,072.9 | |
| | | | | | | | | | | |
Benefits and Expenses | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Policy Benefits Including Remeasurement Loss or Gain | 433.3 | | | 414.4 | | | 876.3 | | | 817.2 | | | 2,070.7 | | | 1,648.0 | |
Commissions | 17.6 | | | 18.1 | | | 34.2 | | | 37.2 | | | 73.8 | | | 75.7 | |
| | | | | | | | | | | |
Other Expenses | 42.5 | | | 44.1 | | | 86.7 | | | 84.6 | | | 172.7 | | | 172.3 | |
Total | 493.4 | | | 476.6 | | | 997.2 | | | 939.0 | | | 2,317.2 | | | 1,896.0 | |
| | | | | | | | | | | |
Income (Loss) Before Income Tax and Net Investment Gain and Losses | 34.3 | | | 30.3 | | | 41.0 | | | 70.2 | | | (282.8) | | | 176.9 | |
Amortization of the Cost of Reinsurance | 10.3 | | | 11.0 | | | 20.7 | | | 22.0 | | | 44.1 | | | 50.3 | |
Non-Contemporaneous Reinsurance | 7.0 | | | 9.9 | | | 14.2 | | | 17.2 | | | 34.8 | | | 34.4 | |
| | | | | | | | | | | |
Reserve Assumption Updates - Long-term Care | — | | | — | | | — | | | — | | | 368.1 | | | (2.9) | |
Reserve Assumption Updates - All Other | — | | | — | | | — | | | — | | | 0.7 | | | (6.8) | |
Adjusted Operating Income | $ | 51.6 | | | $ | 51.2 | | | $ | 75.9 | | | $ | 109.4 | | | $ | 164.9 | | | $ | 251.9 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Long-term Care Net Premium Ratio | | | | | 93.7 | % | | 86.1 | % | | 93.5 | % | | 85.1 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Operating Ratios (% of Premium Income): | | | | | | | | | | | |
Other Expense Ratio1 | 14.6 | % | | 14.4 | % | | 14.8 | % | | 13.6 | % | | 14.0 | % | | 12.9 | % |
| | | | | | | | | | | |
Income (Loss) Ratio | 15.5 | % | | 13.2 | % | | 9.2 | % | | 15.2 | % | | (30.9) | % | | 18.7 | % |
Adjusted Operating Income Ratio | 23.3 | % | | 22.3 | % | | 17.0 | % | | 23.7 | % | | 18.0 | % | | 26.7 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
Long-term Care Persistency | | | | | 95.3 | % | | 95.4 | % | | 95.6 | % | | 95.7 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
1Excludes amortization of the cost of reinsurance. |
|
Unum Group Financial Results for Corporate Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | | Year Ended |
| 6/30/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 | | 12/31/2023 | | 12/31/2022 |
Adjusted Operating Revenue | | | | | | | | | | | |
Net Investment Income | $ | 14.3 | | | $ | 25.4 | | | $ | 32.3 | | | $ | 51.5 | | | $ | 99.8 | | | $ | 52.5 | |
Other Income | 0.4 | | | 2.3 | | | 1.1 | | | 2.5 | | | 3.3 | | | 4.8 | |
Total | 14.7 | | | 27.7 | | | 33.4 | | | 54.0 | | | 103.1 | | | 57.3 | |
| | | | | | | | | | | |
Interest, Debt, and Other Expenses | 60.0 | | | 62.6 | | | 124.8 | | | 122.4 | | | 249.5 | | | 221.6 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Adjusted Operating Loss | $ | (45.3) | | | $ | (34.9) | | | $ | (91.4) | | | $ | (68.4) | | | $ | (146.4) | | | $ | (164.3) | |
Unum Group Investments
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 6/30/2024 | | | | 6/30/2024 | | 12/31/2023 |
Fixed Maturity Securities (Fair Value) | | | | | | Selected Statistics | | | | |
Public | | $ | 23,360.3 | | | 65.0 | % | | Earned Book Yield | | 4.44 | % | | 4.45 | % |
Mortgage-Backed/Asset-Backed Securities | | 752.5 | | | 2.1 | | | Average Duration (in years) | | 8.39 | | 8.41 |
| | | | | | | | | | |
| | | | | | | | | | |
Private Placements | | 5,560.4 | | | 15.5 | | | | | | | |
High Yield | | 1,437.8 | | | 4.0 | | | | | | | |
Government Securities | | 1,388.9 | | | 3.9 | | | | | | | |
Municipal Securities | | 3,449.3 | | | 9.5 | | | | | | | |
Redeemable Preferred Stocks | | 3.6 | | | — | | | | | | | |
Total | | $ | 35,952.8 | | | 100.0 | % | | | | | | |
| | | | | | | | | | |
| | Amortized Cost | | Fair Value | | | | | | |
Quality Ratings of Fixed Maturity Securities | | | | | | Private Equity Partnerships | | 6/30/2024 | | 12/31/2023 |
Aaa | | 2.6 | % | | 2.5 | % | | Private Credit Partnerships | | $ | 312.4 | | | $ | 283.6 | |
Aa | | 15.7 | | | 15.2 | | | Private Equity Partnerships | | 589.2 | | | 571.9 | |
A | | 30.3 | | | 30.8 | | | Real Asset Partnerships | | 505.3 | | | 470.7 | |
Baa | | 47.5 | | | 47.5 | | | Total | | $ | 1,406.9 | | | $ | 1,326.2 | |
Below Baa | | 3.9 | | | 4.0 | | | | | | | |
Total | | 100.0 | % | | 100.0 | % | | | | | | |
| | | | | | Non-Current Investments | | $ | — | | | $ | — | |
|
|
Unum Group Investments at June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Maturity Securities - By Industry Classification - Unrealized Gain (Loss) |
| | | | | | | | | | | | |
|
Classification | | Fair Value | | Net Unrealized Gain (Loss) | | Fair Value with Gross Unrealized Loss | | Gross Unrealized Loss | | Fair Value with Gross Unrealized Gain | | Gross Unrealized Gain |
Basic Industry | | $ | 2,489.7 | | | $ | (156.4) | | | $ | 1,740.2 | | | $ | 191.9 | | | $ | 749.5 | | | $ | 35.5 | |
Capital Goods | | 3,264.0 | | | (161.5) | | | 2,026.9 | | | 234.2 | | | 1,237.1 | | | 72.7 | |
Communications | | 2,201.4 | | | (110.1) | | | 1,163.6 | | | 196.1 | | | 1,037.8 | | | 86.0 | |
Consumer Cyclical | | 1,404.4 | | | (109.6) | | | 1,018.8 | | | 130.9 | | | 385.6 | | | 21.3 | |
Consumer Non-Cyclical | | 6,307.6 | | | (501.5) | | | 4,400.6 | | | 619.6 | | | 1,907.0 | | | 118.1 | |
Energy | | 2,519.3 | | | (17.9) | | | 1,077.6 | | | 112.7 | | | 1,441.7 | | | 94.8 | |
Financial Institutions | | 3,779.8 | | | (381.8) | | | 3,262.2 | | | 404.4 | | | 517.6 | | | 22.6 | |
Mortgage/Asset-Backed | | 752.5 | | | (32.9) | | | 536.7 | | | 37.2 | | | 215.8 | | | 4.3 | |
Sovereigns | | 829.9 | | | (123.0) | | | 436.5 | | | 137.6 | | | 393.4 | | | 14.6 | |
Technology | | 1,460.1 | | | (140.3) | | | 1,259.2 | | | 149.0 | | | 200.9 | | | 8.7 | |
Transportation | | 1,636.4 | | | (137.9) | | | 1,190.1 | | | 160.0 | | | 446.3 | | | 22.1 | |
U.S. Government Agencies and Municipalities | | 4,008.3 | | | (479.8) | | | 2,675.4 | | | 573.4 | | | 1,332.9 | | | 93.6 | |
Public Utilities | | 5,299.4 | | | (243.7) | | | 2,984.1 | | | 372.8 | | | 2,315.3 | | | 129.1 | |
Total | | $ | 35,952.8 | | | $ | (2,596.4) | | | $ | 23,771.9 | | | $ | 3,319.8 | | | $ | 12,180.9 | | | $ | 723.4 | |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Gross Unrealized Loss on Fixed Maturity Securities by Length of Time in Unrealized Loss Position |
| | | | | | | | | | | | |
| | Investment-Grade | | | | Below-Investment-Grade |
Category | | Fair Value | | Gross Unrealized Loss | | | | | | Fair Value | | Gross Unrealized Loss |
Less than 91 days | | $ | 2,180.9 | | | $ | (31.5) | | | | | | | $ | 57.1 | | | $ | (0.4) | |
91 through 180 days | | 1,976.1 | | | (74.6) | | | | | | | 30.9 | | | (0.7) | |
181 through 270 days | | 459.1 | | | (28.6) | | | | | | | 54.8 | | | (0.9) | |
271 days to 1 year | | 78.0 | | | (6.4) | | | | | | | 2.6 | | | — | |
Greater than 1 year | | 18,151.9 | | | (3,085.9) | | | | | | | 780.5 | | | (90.8) | |
Total | | $ | 22,846.0 | | | $ | (3,227.0) | | | | | | | $ | 925.9 | | | $ | (92.8) | |
Appendix to Statistical Supplement
2024 Significant Items:
•None.
2023 Significant Items:
•Third quarter of 2023 reserve assumption updates resulting in a net reserve increase of $177.2 million before tax, or $139.3 million after tax.
•In 2018, the Financial Accounting Standards Board issued ASU 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts”. This update significantly amended the accounting and disclosure requirements for long-duration insurance contracts. The update was effective for periods beginning January 1, 2023. We adopted this guidance effective January 1, 2023 using the modified retrospective approach with changes applied as of January 1, 2021, also referred to as the transition date.
2022 Significant Items
•Third quarter of 2022 reserve assumption updates resulting in a net reserve reduction of $243.3 million before tax, or $192.1 million after tax.
Appendix to Statistical Supplement - Continued
Non-GAAP Financial Measures
We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial measures are better performance measures and better indicators of the revenue and profitability and underlying trends in our business:
•Consolidated adjusted operating revenue, which excludes investment gains or losses;
•After-tax adjusted operating income or loss, which excludes investment gains or losses, amortization of the cost of reinsurance, non-contemporaneous reinsurance, and reserve assumption updates, as well as certain other items, as applicable;
•Adjusted operating return on equity, which is calculated using after-tax adjusted operating income or loss and excludes from equity the unrealized gain or loss on securities, the effect of change in discount rate assumptions on the liability for future policy benefits, and net gain or loss on derivatives;
•Leverage ratio, which excludes the unrealized gain or loss on securities, the effect of change in discount rate assumptions on the liability for future policy benefits, and net gain or loss on derivatives; and
•Book value per common share, which is calculated excluding accumulated other comprehensive income (loss) (AOCI).
Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. Investment gains or losses and unrealized gains or losses on securities depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. Leverage ratio and book value per common share excluding certain components of AOCI, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures.
Cash flow assumptions used to calculate our liability for future policy benefits are reviewed at least annually and updated, as needed, with the resulting impact reflected in net income. While the effects of these assumption updates are recorded in the reporting period in which the review is completed, these updates reflect experience emergence and changes to expectations spanning multiple periods. We believe that by excluding the impact of reserve assumption updates we are providing a more comparable and consistent view of our quarterly results.
We exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that we recognized upon the exit of the business related to the policies on claim status as well as the impact of non-contemporaneous reinsurance that resulted from the adoption of ASU 2018-12. Due to the execution of the second phase of the reinsurance transaction occurring after January 1, 2021, the transition date of ASU 2018-12, in accordance with the provisions of the ASU related to non-contemporaneous reinsurance, we were required to establish the ceded reserves using an upper-medium grade fixed-income instrument as of the reinsurance transaction date in March 2021 which resulted in higher ceded reserves compared to that which was reported historically. However, the direct reserves for the block reinsured in the second phase were calculated using the original discount rate utilized as of the transition date. Both the direct and ceded reserves are then remeasured at each reporting period using a current discount rate reflective of an upper-medium grade fixed-income instrument, with the changes recognized in other comprehensive income (loss). While the total equity impact is neutral, the different original discount rates utilized for direct and ceded reserves result in disproportionate earnings impacts. The impact of non-contemporaneous reinsurance will fluctuate depending on the magnitude of reserve changes during the period. We believe that the exclusion of these items provides a better view of our results from our ongoing businesses.
Appendix to Statistical Supplement - Continued
We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability.
For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 15.3, other than book value per common share, which is presented on page 2.
Reconciliation of Non-GAAP Financial Measures
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | June 30 | | March 31 | | December 31 | | September 30 | | June 30 | | March 31 | | | | | | |
| | | 2024 | | 2023 | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total Revenue | | | $ | 3,233.4 | | | $ | 3,200.3 | | | $ | 3,145.1 | | | $ | 3,092.5 | | | $ | 3,112.2 | | | $ | 3,036.1 | | | | | | | |
Excluding: | | | | | | | | | | | | | | | | | | | |
Net Investment Gain (Loss) | | | (10.4) | | | (1.2) | | | (6.0) | | | (31.0) | | | 0.9 | | | 0.1 | | | | | | | |
Adjusted Operating Revenue | | | $ | 3,243.8 | | | $ | 3,201.5 | | | $ | 3,151.1 | | | $ | 3,123.5 | | | $ | 3,111.3 | | | $ | 3,036.0 | | | | | | | |
Reconciliation of Non-GAAP Financial Measures - Continued
| | | | | | | | | | | | | | | | | | | | |
| | After-Tax Adjusted Operating Income (Loss) | | Average Allocated Equity1 | | Annualized Adjusted Operating Return on Equity |
| | | |
| | | |
Three Months Ended June 30, 2024 | | | | | | |
Unum US | | $ | 282.4 | | | $ | 4,432.9 | | | 25.5 | % |
Unum International | | 33.3 | | | 755.6 | | | 17.6 | % |
Colonial Life | | 92.3 | | | 1,832.5 | | | 20.1 | % |
Core Operating Segments | | 408.0 | | | 7,021.0 | | | 23.2 | % |
Closed Block | | 38.0 | | | 5,573.5 | | | |
Corporate | | (34.6) | | | (33.1) | | | |
Total | | $ | 411.4 | | | $ | 12,561.4 | | | 13.1 | % |
| | | | | | |
Three Months Ended June 30, 2023 | | | | | | |
Unum US | | $ | 271.0 | | | $ | 4,469.3 | | | 24.3 | % |
Unum International | | 35.9 | | | 787.9 | | | 18.2 | % |
Colonial Life | | 91.2 | | | 1,696.2 | | | 21.5 | % |
Core Operating Segments | | 398.1 | | | 6,953.4 | | | 22.9 | % |
Closed Block | | 38.3 | | | 5,309.8 | | | |
Corporate | | (27.6) | | | (389.9) | | | |
Total | | $ | 408.8 | | | $ | 11,873.3 | | | 13.8 | % |
| | | | | | |
1 Excludes unrealized gain (loss) on securities, the effect of change in discount rate assumptions on the liability for future policy benefits, and net gain (loss) on derivatives and is calculated using the stockholders' equity balances presented on page 15.7.
Reconciliation of Non-GAAP Financial Measures - Continued
| | | | | | | | | | | | | | | | | | | | |
| | After-Tax Adjusted Operating Income (Loss) | | Average Allocated Equity1 | | Annualized Adjusted Operating Return on Equity |
| | | |
| | | |
Six Months Ended June 30, 2024 | | | | | | |
Unum US | | $ | 586.8 | | | $ | 4,458.3 | | | 26.3 | % |
Unum International | | 61.3 | | | 767.8 | | | 16.0 | % |
Colonial Life | | 182.0 | | | 1,815.7 | | | 20.0 | % |
Core Operating Segments | | 830.1 | | | 7,041.8 | | | 23.6 | % |
Closed Block | | 54.7 | | | 5,545.9 | | | |
Corporate | | (63.5) | | | (121.0) | | | |
Total | | $ | 821.3 | | | $ | 12,466.7 | | | 13.2 | % |
| | | | | | |
Six Months Ended June 30, 2023 | | | | | | |
Unum US | | $ | 517.9 | | | $ | 4,642.0 | | | 22.3 | % |
Unum International | | 69.1 | | | 787.6 | | | 17.5 | % |
Colonial Life | | 165.2 | | | 1,693.7 | | | 19.5 | % |
Core Operating Segments | | 752.2 | | | 7,123.3 | | | 21.1 | % |
Closed Block | | 82.1 | | | 5,276.2 | | | |
Corporate | | (52.9) | | | (649.1) | | | |
Total | | $ | 781.4 | | | $ | 11,750.4 | | | 13.3 | % |
| | | | | | |
1 Excludes unrealized gain (loss) on securities, the effect of change in discount rate assumptions on the liability for future policy benefits, and net gain (loss) on derivatives and is calculated using the stockholders' equity balances presented on page 15.7.
Reconciliation of Non-GAAP Financial Measures - Continued
| | | | | | | | | | | | | | | | | | | | |
| | After-Tax Adjusted Operating Income (Loss) | | Average Allocated Equity1 | | Adjusted Operating Return on Equity |
| | | |
| | | |
Year Ended December 31, 2023 | | | | | | |
Unum US | | $ | 1,071.0 | | | $ | 4,635.7 | | | 23.1 | % |
Unum International | | 127.9 | | | 774.3 | | | 16.5 | % |
Colonial Life | | 315.6 | | | 1,744.5 | | | 18.1 | % |
Core Operating Segments | | 1,514.5 | | | 7,154.5 | | | 21.2 | % |
Closed Block | | 120.8 | | | 5,295.1 | | | |
Corporate | | (121.7) | | | (573.7) | | | |
Total | | $ | 1,513.6 | | | $ | 11,875.9 | | | 12.7 | % |
| | | | | | |
Year Ended December 31, 2022 | | | | | | |
Unum US | | $ | 768.6 | | | $ | 4,675.8 | | | 16.4 | % |
Unum International | | 161.8 | | | 781.6 | | | 20.7 | % |
Colonial Life | | 325.9 | | | 1,642.5 | | | 19.9 | % |
Core Operating Segments | | 1,256.3 | | | 7,099.9 | | | 17.7 | % |
Closed Block | | 194.1 | | | 4,873.7 | | | |
Corporate | | (156.2) | | | (979.8) | | | |
Total | | $ | 1,294.2 | | | $ | 10,993.8 | | | 11.8 | % |
1 Excludes unrealized gain (loss) on securities, the effect of change in discount rate assumptions on the liability for future policy benefits, and net gain (loss) on derivatives and is calculated using the stockholders' equity balances presented on page 15.7.
Reconciliation of Non-GAAP Financial Measures - Continued
Average allocated equity is computed as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 6/30/2024 | | 3/31/2024 | | | | 12/31/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 12/31/2021 |
Total Stockholders' Equity | | $ | 10,464.6 | | | $ | 10,219.5 | | | | | $ | 9,651.4 | | | $ | 9,245.9 | | | $ | 9,247.4 | | | $ | 8,735.0 | | | $ | 6,033.9 | |
Excluding: | | | | | | | | | | | | | | | | |
Net Unrealized Gain (Loss) on Securities | | (2,723.8) | | | (2,360.8) | | | | | (1,919.1) | | | (2,762.6) | | | (2,205.2) | | | (3,028.4) | | | 4,014.4 | |
Effect of Change in Discount Rate Assumptions on the Liability for Future Policy Benefits | | 712.3 | | | 225.3 | | | | | (648.4) | | | 0.1 | | | (260.0) | | | 313.9 | | | (8,570.7) | |
Net Gain (Loss) on Derivatives | | (164.6) | | | (127.0) | | | | | (73.7) | | | (33.3) | | | 7.8 | | | (9.6) | | | 61.8 | |
Total Adjusted Stockholders' Equity | | $ | 12,640.7 | | | $ | 12,482.0 | | | | | $ | 12,292.6 | | | $ | 12,041.7 | | | $ | 11,704.8 | | | $ | 11,459.1 | | | $ | 10,528.4 | |
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | | | | Twelve Months Ended | | Three Months Ended | | Six Months Ended | | Twelve Months Ended | | |
| | 6/30/2024 | | | | 12/31/2023 | | 6/30/2023 | | 12/31/2022 | | |
Average Adjusted Stockholders' Equity | | $ | 12,561.4 | | | $ | 12,466.7 | | | | | $ | 11,875.9 | | | $ | 11,873.3 | | | $ | 11,750.4 | | | $ | 10,993.8 | | | |
Reconciliation of Non-GAAP Financial Measures - Continued
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30 | | Six Months Ended June 30 |
| | 2024 | | 2023 | | 2024 | | 2023 |
| | (in millions) | | per share* | | (in millions) | | per share* | | (in millions) | | per share* | | (in millions) | | per share* |
Net Income | | $ | 389.5 | | | $ | 2.05 | | | $ | 392.9 | | | $ | 1.98 | | | $ | 784.7 | | | $ | 4.09 | | | $ | 751.2 | | | $ | 3.78 | |
Excluding: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net Investment Gain (Loss) (net of tax expense (benefit) of $(2.2); $0.2; $(2.6); $0.2) | | (8.2) | | | (0.04) | | | 0.7 | | | — | | | (9.0) | | | (0.05) | | | 0.8 | | | 0.01 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Amortization of the Cost of Reinsurance (net of tax benefit of $2.1; $2.3; $4.3; $4.6) | | (8.2) | | | (0.04) | | | (8.7) | | | (0.04) | | | (16.4) | | | (0.08) | | | (17.4) | | | (0.09) | |
| | | | | | | | | | | | | | | | |
Non-Contemporaneous Reinsurance (net of tax benefit of $1.5; $2.0; $3.0; $3.6) | | (5.5) | | | (0.03) | | | (7.9) | | | (0.04) | | | (11.2) | | | (0.06) | | | (13.6) | | | (0.07) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
After-tax Adjusted Operating Income | | $ | 411.4 | | | $ | 2.16 | | | $ | 408.8 | | | $ | 2.06 | | | $ | 821.3 | | | $ | 4.28 | | | $ | 781.4 | | | $ | 3.93 | |
*Assuming Dilution.
Reconciliation of Non-GAAP Financial Measures - Continued
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31 |
| | 2023 | | 2022 |
| | (in millions) | | per share * | | (in millions) | | per share * |
Net Income | | $ | 1,283.8 | | | $ | 6.50 | | | $ | 1,407.2 | | | $ | 6.96 | |
Excluding: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Net Investment Loss (net of tax benefit of $7.8; $3.5) | | (28.2) | | | (0.14) | | | (12.2) | | | (0.07) | |
| | | | | | | | |
| | | | | | | | |
Amortization of the Cost of Reinsurance (net of tax benefit of $9.3; $10.6) | | (34.8) | | | (0.18) | | | (39.7) | | | (0.20) | |
Non-Contemporaneous Reinsurance (net of tax benefit of $7.3; $7.2) | | (27.5) | | | (0.14) | | | (27.2) | | | (0.13) | |
| | | | | | | | |
| | | | | | | | |
Reserve Assumption Updates (net of tax expense (benefit) of $(37.9); $51.2) | | (139.3) | | | (0.70) | | | 192.1 | | | 0.96 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
After-tax Adjusted Operating Income | | $ | 1,513.6 | | | $ | 7.66 | | | $ | 1,294.2 | | | $ | 6.40 | |
| | | | | | | | |
| | | | | | | | |
*Assuming Dilution.
Reconciliation of Non-GAAP Financial Measures - Continued
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | June 30 | | December 31 |
| | 2024 | | 2023 | | 2023 | | 2022 |
| | | | |
Debt | | $ | 3,470.3 | | | $ | 3,431.1 | | | $ | 3,430.4 | | | $ | 3,429.8 | |
Including: | | | | | | | | |
Lease Liability | | 58.2 | | | 65.0 | | | 62.6 | | | 67.9 | |
| | | | | | | | |
| | | | | | | | |
Adjusted Debt and Lease Liability | | $ | 3,528.5 | | | $ | 3,496.1 | | | $ | 3,493.0 | | | $ | 3,497.7 | |
| | | | | | | | |
Total Stockholders' Equity | | $ | 10,464.6 | | | $ | 9,245.9 | | | $ | 9,651.4 | | | $ | 8,735.0 | |
Excluding: | | | | | | | | |
Net Unrealized Loss on Securities | | (2,723.8) | | | (2,762.6) | | | (1,919.1) | | | (3,028.4) | |
Effect of Change in Discount Rate Assumptions on the Liability for Future Policy Benefits | | 712.3 | | | 0.1 | | | (648.4) | | | 313.9 | |
Net Loss on Derivatives | | (164.6) | | | (33.3) | | | (73.7) | | | (9.6) | |
Equity, As Adjusted | | 12,640.7 | | | 12,041.7 | | | 12,292.6 | | | 11,459.1 | |
Debt, As Adjusted and Lease Liability | | 3,528.5 | | | 3,496.1 | | | 3,493.0 | | | 3,497.7 | |
Total Adjusted Capital | | $ | 16,169.2 | | | $ | 15,537.8 | | | $ | 15,785.6 | | | $ | 14,956.8 | |
| | | | | | | | |
Leverage Ratio | | 21.8 | % | | 22.5 | % | | 22.1 | % | | 23.4 | % |
Reconciliation of Non-GAAP Financial Measures - Continued
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Three Months Ended |
| | | | | | June 30, 2024 | | June 30, 2023 |
| | | | | | Premium Income | | Premium Income, local currency1 | | Weighted Average Exchange Rate2 | | Premium Income in Constant Currency |
| | | | | | |
| | | | | | |
Unum International | | | | | | | | | | | | |
Unum UK | | | | | | $ | 191.7 | | | £ | 143.1 | | | 1.263 | | | $ | 180.7 | |
Unum Poland | | | | | | 37.1 | | | zł | 119.1 | | | 0.250 | | | 29.8 | |
Total | | | | | | 228.8 | | | | | | | 210.5 | |
Unum US | | | | | | 1,730.9 | | | $ | 1,641.4 | | | | | 1,641.4 | |
Colonial Life | | | | | | 446.2 | | | $ | 430.6 | | | | | 430.6 | |
Core Operations | | | | | | $ | 2,405.9 | | | | | | | $ | 2,282.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months Ended |
| | | | | | June 30, 2024 | | June 30, 2023 |
| | | | | | Premium Income | | Premium Income, local currency1 | | Weighted Average Exchange Rate2 | | Premium Income in Constant Currency |
| | | | | | |
| | | | | | |
Unum International | | | | | | | | | | | | |
Unum UK | | | | | | $ | 387.0 | | | £ | 277.0 | | | 1.266 | | | $ | 350.7 | |
Unum Poland | | | | | | 73.5 | | | zł | 232.9 | | | 0.251 | | | 58.5 | |
Total | | | | | | 460.5 | | | | | | | 409.2 | |
Unum US | | | | | | 3,438.3 | | | $ | 3,251.0 | | | | | 3,251.0 | |
Colonial Life | | | | | | 893.1 | | | $ | 860.1 | | | | | 860.1 | |
Core Operations | | | | | | $ | 4,791.9 | | | | | | | $ | 4,520.3 | |
1Premium income shown in millions of pounds for Unum UK, millions of zlotys for Unum Poland, and millions of U.S. dollars for Unum US and Colonial Life.
2Exchange rate is calculated using the average foreign currency exchange rates for the most recent period, applied to the comparable prior period.
| | | | | | | | | | | | | | |
| | | | Exhibit 99.3 |
| | | | |
| | | | 1 Fountain Square Chattanooga, TN 37402 www.unum.com |
| | | | |
| | FOR IMMEDIATE RELEASE |
| | Contacts | | |
| | MEDIA | | Dottie McCallen dmccallen@unum.com |
| INVESTORS | | Matt Royal Investorrelations@unum.com |
Unum Group’s board of directors authorizes
$1 billion share repurchase program
CHATTANOOGA, Tenn., July 30, 2024 – Unum Group (NYSE: UNM) announced today that its board of directors has approved a share repurchase program authorizing the company to repurchase up to $1 billion of its common stock from time to time beginning on August 1, 2024. The board of directors also authorized the termination of the company’s current share repurchase program as of July 31, 2024.
The timing and amount of share repurchases will be determined by management based on its evaluation of market conditions and other considerations. Repurchases may be made in open market transactions at prevailing prices, in privately negotiated transactions (including accelerated share repurchase programs), pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, or by other means in accordance with federal securities laws. The program may be suspended, modified, or terminated by the board at any time.
# # #
Forward-Looking Statements
Certain statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Unum Group and its subsidiaries. Unum Group’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in Part 1, Item 1A (Risk Factors) of Unum Group’s Annual Report on Form 10-K for the year ended December 31, 2023. The forward-looking statements in this release speak only as of the date of this release, and Unum Group does not undertake to update any particular forward-looking statement included in this release.
About Unum Group
Unum Group (NYSE: UNM), a leading international provider of workplace benefits and services, has been helping workers and their families thrive for more than 175 years. Through its Unum and Colonial Life brands, the company offers disability, life, accident, critical illness, dental, vision and stop-loss insurance; leave and absence management support; and behavioral health services. In 2023, Unum Group reported revenues of more than $12 billion and paid approximately $8 billion in benefits. The Fortune 500 company is recognized as one of the World’s Most Ethical Companies by Ethisphere®.
Visit the Unum Group newsroom (https://www.unumgroup.com/newsroom) for more information, and connect with us on LinkedIn (https://www.linkedin.com/company/unum), Facebook (https://www.facebook.com/unumbenefits/), and Instagram (https://www.instagram.com/unumbenefits/).
v3.24.2
Cover
|
Jul. 30, 2024 |
Entity Information |
|
Document Type |
8-K
|
Document Period End Date |
Jul. 30, 2024
|
Entity Registrant Name |
UNUM GROUP
|
Entity Incorporation, State or Country Code |
DE
|
Entity File Number |
001-11294
|
Entity Tax Identification Number |
62-1598430
|
Entity Address, Address Line One |
1 Fountain Square
|
Entity Address, City or Town |
Chattanooga,
|
Entity Address, State or Province |
TN
|
Entity Address, Postal Zip Code |
37402
|
City Area Code |
423
|
Local Phone Number |
294-1011
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Entity Central Index Key |
0000005513
|
Amendment Flag |
false
|
Common Class A | NEW YORK STOCK EXCHANGE, INC. |
|
Entity Information |
|
Title of 12(b) Security |
Common stock, $0.10 par value
|
Trading Symbol |
UNM
|
Security Exchange Name |
NYSE
|
6.250% Junior Subordinated Notes due 2058 | NEW YORK STOCK EXCHANGE, INC. |
|
Entity Information |
|
Title of 12(b) Security |
6.250% Junior Subordinated Notes due 2058
|
Trading Symbol |
UNMA
|
Security Exchange Name |
NYSE
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14a -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassAMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
dei_EntityListingsExchangeAxis=exch_XNYS |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=unm_A6250JuniorSubordinatedNotesDue2058Member |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
Unum (NYSE:UNM)
Historical Stock Chart
From Nov 2024 to Dec 2024
Unum (NYSE:UNM)
Historical Stock Chart
From Dec 2023 to Dec 2024