Unum Group
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
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Colonial Life Segment
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.
| (in millions of dollars, except ratios) | ||||
|---|---|---|---|---|
| Three Months Ended March 31 | ||||
| 2025 · % Change · 2024 | ||||
| Adjusted Operating Revenue | ||||
| Premium Income | ||||
| Accident, Sickness, and Disability | $247.1 | 1.6% | $243.2 | |
| Life | 119.9 | 4.9 | 114.3 | |
| Cancer and Critical Illness | 90.3 | 1.0 | 89.4 | |
| Total Premium Income | 457.3 | 2.3 | 446.9 | |
| Net Investment Income | 42.2 | 7.4 | 39.3 | |
| Other Income | 0.4 | (86.7) | 3.0 | |
| Total | 499.9 | 2.2 | 489.2 | |
| Benefits and Expenses | ||||
| Policy Benefits | 226.6 | — | 226.7 | |
| Policy Benefits - Remeasurement Gain | (8.5) | (11.5) | (9.6) | |
| Commissions | 97.3 | 2.2 | 95.2 | |
| Deferral of Acquisition Costs | (82.6) | 4.2 | (79.3) | |
| Amortization of Deferred Acquisition Costs | 57.7 | 6.9 | 54.0 | |
| Other Expenses | 93.7 | 5.9 | 88.5 | |
| Total | 384.2 | 2.3 | 375.5 | |
| Adjusted Operating Income | $115.7 | 1.8 | $113.7 | |
| Operating Ratios (% of Premium Income): | ||||
| Benefit Ratio | 47.7% | 48.6% | ||
| Other Expense Ratio | 20.5% | 19.8% | ||
| Adjusted Operating Income Ratio | 25.3% | 25.4% | ||
| Persistency: | ||||
| Accident, Sickness, and Disability | 73.6% | 73.7% | ||
| Life | 83.8% | 85.1% | ||
| Cancer and Critical Illness | 82.2% | 82.2% | ||
Premium income increased in the first quarter of 2025 compared to the same period of 2024 due to prior period sales for all product lines. Net investment income was higher in the first quarter of 2025 compared to the same period of 2024 due to an increase in the level of invested assets and an increase in the yield on invested assets.
The benefit ratio in the first quarter of 2025 was favorable relative to the same period of 2024 primarily due to favorable benefit experience in the life and cancer and critical illness product lines.
Commissions were higher in the first quarter of 2025 relative to the same period of 2024 due to prior period sales. The deferral of acquisition costs was higher in the first quarter of 2025 relative to the same period of 2024 due to the increase in commissions and other sales-related costs. The amortization of deferred acquisition costs in the first quarter of 2025 was higher relative to the same period of 2024 due to growth in the level of the deferred asset. The other expense ratio increased in the first quarter of 2025 relative to the same period of 2024 due primarily to an increase in employee-related costs and an increase in operational investments in our business.
Sales
| (in millions of dollars) | |||
|---|---|---|---|
| Three Months Ended March 31 | |||
| 2025 | % Change | 2024 | |
| Sales by Product | |||
| Accident, Sickness, and Disability | $66.2 | 2.5% | $64.6 |
| Life | 25.0 | 0.8 | 24.8 |
| Cancer and Critical Illness | 14.1 | 3.7 | 13.6 |
| Total Sales | $105.3 | 2.2 | $103.0 |
| Sales by Market Sector | |||
| Commercial Sector | |||
| Core Market (< 1,000 employees) | $69.8 | (2.6)% | $71.7 |
| Large Case Market | 9.3 | 1.1 | 9.2 |
| Subtotal | 79.1 | (2.2) | 80.9 |
| Public Sector | 26.2 | 18.6 | 22.1 |
| Total Sales | $105.3 | 2.2 | $103.0 |
Commercial sector sales decreased during the first quarter of 2025 compared to the same period of 2024 due to lower sales to new customers in the core market and lower sales to existing customers in the large case market, which we define as accounts with more than 1,000 employees, partially offset by higher sales to new customers in the large case market. Public sector sales increased in the first quarter of 2025 compared to the same period of 2024 due to higher sales to new and existing customers.
We remain committed to providing employees and their families with simple, modern, and personal benefit solutions. During 2025, 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 2025, 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 2025, we expect growth in adjusted operating income for the full year with strong sales growth, continued premium growth and stable claim experience. We continuously monitor key indicators to assess our risks and adjust our business plans accordingly.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.