Unum Group

The Colonial Life segment includes insurance for accident, sickness, and disability products, which includes dental and vision products, life products, and cancer and critical illness products. These products are marketed to employees, on both a group and an individual basis, at the workplace through an independent contractor agent sales force and brokers.

Shown below are financial results and key performance indicators for the Colonial Life segment.

Premium income in the third quarter and first nine months of 2024 was favorable compared to the same periods of 2023 due to higher prior period sales and generally stable persistency. Net investment income was generally consistent in the third quarter of 2024 relative to the same period of 2023. Net investment income increased during the first nine months of 2024 relative to the same period of 2023 due primarily to an increase in the yield on invested assets.

The benefit ratio, excluding the impacts of the reserve assumption updates, was favorable in the third quarter and first nine months of 2024 relative to the same periods of 2023 primarily due to favorable benefit experience in the cancer and critical illness and life product lines. Also impacting the comparison for the first nine months of 2024 compared to 2023 was favorable benefit experience in the accident, sickness, and disability product line.

Commissions and the deferral of acquisition costs were higher in the third quarter and first nine months of 2024 relative to the same periods of 2023 due to higher sales in prior periods. The amortization of deferred acquisition costs was generally consistent in the third quarter of 2024 relative to the same period of 2023. The amortization of deferred acquisition costs was higher during the first nine months of 2024 relative to the same period of 2023 primarily due to growth in the level of the deferred asset. The other expense ratio was generally consistent in the third quarter and first nine months of 2024 relative to the same periods of 2023.

Sales

Commercial sector sales decreased in the third quarter and first nine months of 2024 compared to the same periods of 2023 due primarily to lower sales to new and existing customers in the core market, which we define as accounts with less than 1,000 employees, partially offset by higher sales to new customers in the large case market. Public sector sales increased in the third quarter and first nine months of 2024 compared to the same periods of 2023 due to higher sales to new customers.

We remain committed to providing employees and their families with simple, modern, and personal benefit solutions. During 2024, we will continue to utilize our strong distribution system of independent agents, benefit counselors and broker partnerships. We will also continue to invest in solutions and digital capabilities to expand our reach and effectiveness, driving growth and improving productivity while enhancing the customer experience. In 2024, we will continue to bring an enhanced engagement and enrollment platform to market, enabling deeper connections with employees through the enrollment process as well as maintaining stronger relationships throughout the customer lifecycle. We believe our distribution system, customer service capabilities, digital and virtual tools, and ability to serve all market sizes position us well for future growth.

In 2024, we expect strong growth in adjusted operating income for the full year with premium growth increasing from the prior year. We expect improved claim experience in 2024 but could continue to experience some level of claims volatility. While we believe our underlying profitability will remain strong, current economic conditions and increasing competition in the voluntary workplace market are risks to achievement of our business plans. We continuously monitor key indicators to assess our risks and adjust our business plans accordingly.