Unum Group

Closed Block Segment

The Closed Block segment reported adjusted operating income of $34.2 million in the third quarter of 2024, which excludes the amortization of cost of reinsurance of $10.4 million and the impact of non-contemporaneous reinsurance of $6.0 million related to the Closed Block individual disability reinsurance transaction as well as the net reserve decrease related to the assumption updates of $175.3 million, compared to $34.2 million in the third quarter of 2023, which excludes the amortization of cost of reinsurance of $11.1 million and the impact of non-contemporaneous reinsurance of $9.2 million related to the Closed Block individual disability reinsurance transaction and the net reserve increase related to the assumption updates of $368.8 million. Premium income for this segment is largely driven by our long-term care product line, and in the third quarter of 2024, premium income for long-term care was generally consistent with the same period of 2023. Net investment income increased 3.4 percent to $284.3 million in the third quarter of 2024, compared to $274.9 million in the third quarter of 2023, primarily due to an increase in the level of invested assets.

Policy benefits including remeasurement loss (gain), excluding the impacts of non-contemporaneous reinsurance and the reserve assumption updates, for the Closed Block segment were generally consistent during the third quarter of 2024 relative to the same period of 2023. The net premium ratio for the long-term care product line increased to 94.5 percent at September 30, 2024 from 93.4 percent at September 30, 2023, due primarily to policyholder terminations and the assumption updates in the third quarter of 2024. Compared to June 30, 2024, the net premium ratio increased from 93.7 percent to 94.5 percent due to the assumption updates in the third quarter of 2024. Overall claim experience for long-term care continued to improve sequentially, as expected.