Unum Group

Unum Group is committed to helping the working world thrive throughout life’s moments. Through businesses in the United States, United Kingdom and Poland, we protect nearly 47 million individuals and their families against financial hardships resulting from illness, injury or loss of life. We connect with these people and their families through the workplace by partnering with 178,000 employer clients – businesses we help to strengthen workplace wellbeing and navigate regulatory challenges.

In 2024, we continued to deliver growth and significant shareholder value, reporting after-tax adjusted operating income(1) of $1.59 billion. This performance was driven by steady growth in sales and earned premium compared to 2023, thanks to ongoing demand for our products and services. Rollout of our digital capabilities continued to drive customer satisfaction among both policyholders and employer clients. Our strong financial results were also aided by favorable claims trends across several product lines and high yields across our investment portfolio. Macroeconomic trends such as strong employment, wage inflation, and favorable interest rates remained tailwinds for our business.

Our consistent results and ability to generate strong cash flow from our businesses allowed us to continue investing in growth and seize strategic opportunities as they arise. At the same time, we remain committed to returning capital to shareholders, including $971.0 million in 2024 from share repurchases alone. Overall, Unum's strategic initiatives and financial performance underscore its dedication to providing valuable financial protection and support to individuals, families, and employer clients.

Below are key financial performance measures from 2024. Additional measures, including those we use for annual and long-term incentive decisions, can be found beginning on page 63.

(1)After-tax adjusted operating results and book value per share, excluding AOCI, are non-GAAP financial measures. Information about the non-GAAP financial measures used in this proxy statement is set forth in “A Note About Non-GAAP Financial Measures” on page 2. For a reconciliation of the most directly comparable GAAP financial measures to the non-GAAP financial measures, refer to Appendix B of this proxy statement.

(2)Assuming dilution.

Operating Highlights

By living our purpose, we are laser-focused on meeting the needs of our customers. In 2024, Unum paid $8.0 billion in benefits to people facing illness, injury or loss of life. Satisfaction metrics measuring our engagement with customers and partners remained high as we continued to implement new service and support capabilities across the enterprise.

We have transformed our business over the last several years through significant investments in our digital capabilities. By investing in technologies that anticipate and deliver on evolving customer expectations, we have continued to separate ourselves from the competition and seize opportunities in the marketplace. These technologies create new digital experiences for customers, automate and modernize business processes, track key metrics, deliver new products and services to market faster, and improve customer satisfaction. Through our efforts to continuously improve, we strive to enrich the experience for our customers and enhance the effectiveness of our people.

Our well-diversified portfolio delivers consistent investment income. Due to the nature of our business, we invest in long-term securities focusing on sound risk management. In 2024, our portfolio performed well in a volatile economic environment.

Long-Term Care Performance

The same discipline that allows our core franchise to be successful also benefits our long-term care (LTC) business. LTC is part of our Closed Block that consists of policies that we continue to service and support, but no longer actively market. We manage this block with a combination of rate increases, risk management, tailored investment strategy and ongoing monitoring of emerging experience to inform updates to our reserve liability assumptions and appropriate capital levels.

Over the last several years, we have established additional LTC statutory reserves, implemented rate increases, enhanced operational effectiveness, and reduced the size of the block to provide a strong foundation for this business. These steps have eliminated the need for future capital contributions under current assumptions.

We continue to take actions, such as those described above, to provide for the long-term stability of this block and promote transparency for our shareholders and customers.

We provide a critical financial safety net for millions of people, a fact that drives us to deliver for those who count on us. This focus on doing the right thing guides our approach to business, sustainability and social responsibility. Unum has a long tradition of engaging with shareholders, customers, employees, suppliers and communities in order to support our enterprise purpose, goals, strategy and values.

The Governance Committee of the Board provides oversight and guides the company's sustainability strategy and initiatives. We continue to strengthen and mature our management and disclosure of sustainability matters, and to evaluate and address emerging risks and opportunities to our business.

Our corporate sustainability strategic framework supports our corporate strategy to help create long-term value for key stakeholders by implementing business strategies that include social, environmental, governance, and economic dimensions of doing business. By implementing business strategies that align impact and sustainability issues with key economic drivers, we strive to create long-term value for investors and customers, while benefiting the communities in which we operate.

A more comprehensive discussion of our efforts and progress is published annually in our Impact and Sustainability Report, which is available at www.investors.unumgroup.com. See page 47 for more information about Impact and Sustainability.