Unum Group

Previous wording

For the first quarter of 2025, we reported net income of $189.1 million, or $1.06 per diluted common share, compared to net income of $395.2 million, or $2.04 per diluted common share, in the first quarter of 2024.

Current wording

For the second quarter of 2025, we reported net income of $335.6 million, or $1.92 per diluted common share, compared to net income of $389.5 million, or $2.05 per diluted common share, in the second quarter of 2024. For the first six months of 2025, we reported net income of $524.7 million, or $2.97 per diluted common share, compared to net income of $784.7 million, or $4.09 per diluted common share in the same period of 2024.

Previous wording

Included in our results for the first quarter of 2025 are:

Current wording

Included in our results for the second quarter of 2025 are:

Previous wording

•Amortization of the cost of reinsurance of $10.4 million before tax and $8.2 million after tax, or $0.04 per diluted common share; and,

Current wording

•Amortization of the cost of reinsurance of $10.3 million before tax and $8.2 million after tax, or $0.04 per diluted common share; and

Previous wording

•Non-contemporaneous reinsurance of $6.8 million before tax and $5.4 million after tax, or $0.03 per diluted common share.

Current wording

•Non-contemporaneous reinsurance of $7.0 million before tax and $5.5 million after tax, or $0.03 per diluted common share.

Previous wording

Excluding these items, after-tax adjusted operating income for the first quarter of 2025 was $365.5 million, or $2.04 per diluted common share compared to $409.9 million, or $2.12 per diluted common share, for the first quarter of 2024. See "Reconciliation of Non-GAAP and Other Financial Measures" contained herein in this Item 2 for further discussion and a reconciliation of these items.

Current wording

Excluding these items, after-tax adjusted operating income for the second quarter of 2025 was $361.1 million, or $2.07 per diluted common share compared to $411.4 million, or $2.16 per diluted common share, for the same period of 2024. After-tax adjusted operating income was $726.6 million, or $4.11 per diluted common share, in the first six months of 2025, compared to $821.3 million, or $4.28 per diluted common share, in the first six months of 2024. See "Reconciliation of Non-GAAP and Other Financial Measures" contained herein in this Item 2 for further discussion and a reconciliation of these items.

Previous wording

Our Unum US segment reported adjusted operating income of $329.1 million in the first quarter of 2025 compared to $385.2 million the same period of 2024, due primarily to unfavorable benefits experience, higher operating expenses, and higher commissions, partially offset by higher premium income. The benefit ratio for our Unum US segment was 59.7 percent in the first quarter of 2025, compared to 56.8 percent in first quarter of 2024. Unum US sales increased 1.2 percent in first quarter 2025 compared to the same period of 2024.

Current wording

Our Unum US segment reported adjusted operating income of $318.2 million and $647.3 million in the second quarter and first six months of 2025, respectively, compared to $357.5 million and $742.7 million in the same periods of 2024, due to unfavorable benefits experience and higher commissions, partially offset by higher premium income. The benefit ratio for our Unum US segment was 60.7 percent and 60.2 percent in the second quarter and first six months of 2025, respectively, compared to 58.2 percent and 57.5 percent in the same periods of 2024. Unum US sales decreased 16.2 percent and 8.1 percent in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024.

Previous wording

Our Unum International segment reported adjusted operating income of $38.7 million in the first quarter of 2025 compared to $37.4 million the same period of 2024. Our Unum UK line of business reported adjusted operating income of £29.5 million in the first quarter of 2025 compared to £28.2 million the same period of 2024 due to higher premium income and favorable benefits experience, partially offset by higher operating expenses. The benefit ratio for our Unum UK line of business was 67.1 percent in the first quarter of 2025, compared to 68.1 percent in the same period of 2024. Unum International sales, as measured in U.S. dollars, decreased 19.1 percent in the first quarter of 2025 compared to the same period of 2024. Unum UK sales, as measured in local currency, decreased 28.0 percent in the first quarter of 2025 compared to the same period of 2024.

Current wording

Our Unum International segment reported adjusted operating income of $41.6 million and $80.3 million in the second quarter and first six months of 2025, respectively, compared to $42.5 million and $79.9 million in the same periods of 2024. Our Unum UK line of business reported adjusted operating income of £29.4 million and £58.9 million in the second quarter and first six months of 2025, respectively, compared to £32.5 million and £60.7 million in the same periods of 2024, due to unfavorable benefits experience, partially offset by higher premium income and net investment income. The benefit ratio for our Unum UK line of business was 75.0 percent and 71.1 percent in the second quarter and first six months of 2025, respectively, compared to 69.5 percent and 68.8 percent in the same periods of 2024. Unum International sales, as measured in U.S. dollars, increased 1.1 percent and decreased 7.3 percent in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024. Unum UK sales, as measured in local currency, decreased 13.5 percent and 19.4 percent in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024.

Previous wording

Our Colonial Life segment reported adjusted operating income of $115.7 million in the first quarter of 2025 compared to $113.7 million the same period of 2024, due primarily to higher premium income and favorable benefits experience, partially offset by higher operating expenses. The benefit ratio for Colonial Life was 47.7 percent in the first quarter of 2025, compared to 48.6 percent in the same period of 2024. Colonial Life sales increased 2.2 percent in the first quarter of 2025 compared to the same period of 2024.

Current wording

Our Colonial Life segment reported adjusted operating income of $117.4 million and $233.1 million in the second quarter and first six months of 2025, compared to $116.9 million and $230.6 million in the same periods of 2024, primarily due to higher premium income and net investment income, partially offset by higher operating expenses. Also impacting the comparison of the second quarter of 2025, compared to the same period of 2024, was unfavorable benefit experience. The benefit ratio for Colonial Life was 48.3 percent and 48.0 percent in the second quarter and first six months of 2025, respectively, compared to 47.8 percent and 48.2 percent in the same periods of 2024. Colonial Life sales increased 2.9 percent and 2.6 percent in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024.

Previous wording

Our Closed Block segment reported income before income tax and net investment gains and losses of $8.0 million in the first quarter of 2025 compared to $6.7 million in the same period of 2024, which includes the amortization of the cost of reinsurance and the impact of non-contemporaneous reinsurance related to the Closed Block individual disability reinsurance transaction. Excluding these items, our Closed Block segment reported adjusted operating income of $24.4 million in the first quarter of 2025, which is generally consistent with the $24.3 million in the same period of 2024. The net premium ratio for long-term care increased to 94.7 percent at March 31, 2025 from 93.8 percent at March 31, 2024.

Current wording

Our Closed Block segment reported a loss before income tax and net investment gains and losses of $10.8 million and $2.8 million in the second quarter and first six months of 2025, respectively, compared to income before income tax and net investment gains and losses of $34.3 million and $41.0 million in the same periods of 2024, which includes the amortization of the cost of reinsurance and the impact of non-contemporaneous reinsurance related to the Closed Block individual disability reinsurance transaction. Excluding these items, our Closed Block Segment reported adjusted operating income of $3.9 million and $28.3 million in the second quarter and first six months of 2025, respectively, compared to $51.6 million and $75.9 million in the same periods of 2024, due primarily to unfavorable benefits experience and a decrease in net investment income. The net premium ratio for long-term care increased to 94.9 percent at June 30, 2025 from 93.7 percent at June 30, 2024.

Previous wording

A rising interest rate environment could positively impact our yields on new investments, but could also increase unrealized losses in our current holdings. Alternatively, a declining interest rate environment could negatively impact our yields on new investments, but could also reduce unrealized losses in our current holdings. As of March 31, 2025, we do not hold any securities with a decline in fair value below amortized cost which we intend to sell nor any securities for which it is more likely than not that we will be required to sell before recovery in amortized cost for which an impairment loss was not recorded. During the first quarter of 2025, we recognized impairment losses totaling $152.4 million as a result of our intent to transfer certain fixed maturity securities related to the anticipated reinsurance transaction with Fortitude Reinsurance Company Ltd. (Fortitude Re). During the first quarter of 2024, no impairment losses on fixed maturity securities were recorded. The net unrealized loss on our fixed maturity securities was $2.1 billion at March 31, 2025, compared to $2.6 billion at December 31, 2024, with the decrease due primarily to a decrease in U.S. Treasury rates as well as net investment losses recorded on certain fixed maturity securities related to the anticipated reinsurance transaction with Fortitude Re. The earned book yield on our investment portfolio was 4.25 percent for the first three months of 2025 compared to a yield of 4.44 percent for full year 2024.

Current wording

A rising interest rate environment could positively impact our yields on new investments, but could also increase unrealized losses in our current holdings. Alternatively, a declining interest rate environment could negatively impact our yields on new investments, but could also reduce unrealized losses in our current holdings. As of June 30, 2025, we do not hold any securities with a decline in fair value below amortized cost which we intend to sell nor any securities for which it is more likely than not that we will be required to sell before recovery in amortized cost for which an impairment loss was not recorded. During the first six months of 2025, we recognized impairment losses totaling $160.9 million as a result of our intent to transfer certain fixed maturity securities related to the reinsurance transaction with Fortitude Reinsurance Company Ltd. (Fortitude Re) which closed in July 2025. The net unrealized loss on our fixed maturity securities was $2.0 billion at June 30, 2025, compared to $2.6 billion at December 31, 2024,with the decrease due primarily to a decrease in U.S. Treasury rates. The earned book yield on our investment portfolio was 4.47 percent for the first six months of 2025 compared to a yield of 4.44 percent for full year 2024.

Previous wording

Additionally, a rising interest rate environment could result in reserve decreases while a declining interest rate environment could result in reserve increases, specific to our liability for future policy benefits, as the reserve discount rate assumptions used in the calculation of our liability are updated at each reporting date using a yield that is reflective of an upper-medium grade fixed income instrument, which is generally equivalent to a single-A interest rate matched to the duration of certain of our insurance liabilities. The change in discount rate assumptions on the liability for future policy benefits, net of reinsurance, due primarily to the decrease in U.S. Treasury rates during the first quarter of 2025, resulted in an increase to the liability for future policy benefits, net of reinsurance, of approximately $0.2 billion.

Current wording

Additionally, a rising interest rate environment could result in reserve decreases while a declining interest rate environment could result in reserve increases, specific to our liability for future policy benefits, as the reserve discount rate assumptions used in the calculation of our liability are updated at each reporting date using a yield that is reflective of an upper-medium grade fixed income instrument, which is generally equivalent to a single-A interest rate matched to the duration of certain of our insurance liabilities. The change in discount rate assumptions on the liability for future policy benefits, net of reinsurance, due primarily to the decrease in U.S. Treasury rates during the first six months of 2025, resulted in an increase to the liability for future policy benefits, net of reinsurance, of approximately $0.2 billion.

Previous wording

We believe our capital and financial positions are strong. At March 31, 2025, the risk-based capital (RBC) ratio for our traditional U.S. insurance subsidiaries, calculated on a weighted average basis using the NAIC Company Action Level formula, was approximately 460 percent, which is in line with our expectation. We repurchased 3.3 million shares and 2.5 million shares of Unum Group common stock under our share repurchase program during the first quarter of 2025 and 2024, respectively, at a cost of $202.6 million and $123.0 million, respectively, including commissions and excise tax. Our weighted average common shares outstanding, assuming dilution, equaled 178.9 million and 193.3 million for the first quarter of 2025 and 2024, respectively. As of March 31, 2025, Unum Group and our intermediate holding companies had available holding company liquidity of $2,214.5 million that was held primarily in bank deposits, commercial paper, money market funds, corporate bonds, municipal bonds, and asset backed securities. See Note 12 of the "Notes to Consolidated Financial Statements" contained herein in Item 1.

Current wording

We believe our capital and financial positions are strong. At June 30, 2025, the risk-based capital (RBC) ratio for our traditional U.S. insurance subsidiaries, calculated on a weighted average basis using the NAIC Company Action Level formula, was approximately 485 percent, which is above our long-term expectation. We repurchased 7.1 million shares and 6.0 million shares of Unum Group common stock under our share repurchase program, during the first six months of 2025 and 2024, respectively, at a cost of $505.9 million and $302.8 million, respectively, including commissions and excise tax. Our weighted average common shares outstanding, assuming dilution, equaled 174.4 million and 190.3 million for the second quarters of 2025 and 2024, respectively, and 176.6 million and 191.9 million for the first six months of 2025 and 2024, respectively. As of June 30, 2025, Unum Group and our intermediate holding companies had available holding company liquidity of $1,955.7 million that was held primarily in bank deposits, commercial paper, money market funds, corporate bonds, municipal bonds and asset backed securities. See Note 12 of the "Notes to Consolidated Financial Statements" contained herein in Item 1.

Previous wording

This anticipated reinsurance agreement is to reinsure a portion of our Closed Block long-term care business and a portion of our Unum US individual disability business on a coinsurance basis to Fortitude Re. The anticipated reinsurance agreement represents approximately 21 percent of total Closed Block long-term care future policy benefits and approximately 15 percent of Unum US individual disability future policy benefits as of December 31, 2024. Fortitude Re will establish and maintain a collateralized trust account for the benefit of Unum America to secure its obligations under the anticipated reinsurance agreement.

Current wording

In February 2025, Unum America entered into a master transaction agreement with Fortitude Re which resulted in the execution of a coinsurance agreement (reinsurance agreement) during July 2025. This reinsurance agreement reinsures a portion of our Closed Block long-term care business and a portion of our Unum US individual disability business on a coinsurance basis to Fortitude Re. The reinsurance agreement represents approximately 21 percent of total Closed Block long-term care future policy benefits and approximately 15 percent of Unum US individual disability future policy benefits as of December 31, 2024.

Previous wording

The transaction is expected to result in approximately $430 million pre-tax ceding commission paid to Fortitude Re. As part of the anticipated reinsurance transaction with Fortitude Re, we plan to transfer, upon closing the transaction, fixed maturity securities with an amortized cost of $3,159.4 million and a fair value of $3,274.8 million as of March 31, 2025. During the first quarter of 2025, we recognized impairment losses totaling $152.4 million based on our intent to transfer these assets. As of March 31, 2025, the portfolio we intend to transfer has a total unrealized gain of $115.4 million which is subject to change based on interest rate and credit spread environments at time of closing. In preparation for the anticipated transaction, fixed maturity securities with a fair value of $151.6 million and amortized cost of $175.1 million were sold during the first quarter of 2025, resulting in a $23.5 million net loss. Although we intend to transfer a significant portion of our fixed maturity securities portfolio as part of this transaction, the overall credit profile of our remaining portfolio will not change.

Current wording

Upon closing the transaction in July 2025, we transferred to Fortitude Re $953.5 million of cash, which included the ceding commission of $461.7 million, as well as fixed maturity securities which had an amortized cost of $3,096.3 million and a fair value of $3,224.5 million as of June 30, 2025. A final settlement, including the final ceding commission adjustment, is expected prior to the end of 2025. Fortitude Re established and will maintain a collateralized trust account for the benefit of Unum America to secure its obligations under the reinsurance agreement. During the first six months of 2025, we recognized impairment losses totaling $160.9 million based on our intent to transfer these fixed maturity securities. In preparation for the transaction, fixed maturity securities with a fair value of $151.6 million and amortized cost of $175.1 million were sold during the first six months of 2025, resulting in a $23.5 million net loss. Although we transferred a significant portion of our fixed maturity securities portfolio during the third quarter of 2025 as a part of this transaction, the overall credit profile of our remaining portfolio did not change.

Previous wording

Immediately prior to entering into the anticipated reinsurance agreement with Fortitude Re, Unum America will recapture the aforementioned Closed Block long-term care business from Fairwind Insurance Company (Fairwind), an affiliated captive reinsurer, and assume the aforementioned Unum US individual disability business from Provident, an affiliate.

Current wording

In July 2025, immediately prior to entering into the reinsurance agreement with Fortitude Re, Unum America recaptured the aforementioned Closed Block long-term care business from Fairwind Insurance Company (Fairwind), an affiliated captive reinsurer, and assumed the aforementioned Unum US individual disability business from Provident, an affiliate.

Previous wording

The accounting estimates deemed to be most critical to our financial position and results of operations are those related to the liability for future policy benefits, valuation of investments, pension and postretirement benefit plans, income taxes, and contingent liabilities. There have been no significant changes in our critical accounting estimates during the three months ended March 31, 2025.

Current wording

The accounting estimates deemed to be most critical to our financial position and results of operations are those related to the liability for future policy benefits, fair value of investments, pension and postretirement benefit plans, income taxes, and contingent liabilities. There have been no significant changes in our critical accounting estimates during the six months ended June 30, 2025.

Previous wording

The weighted average pound/dollar exchange rate for our Unum UK line of business was 1.264 and 1.266 for the three months ended March 31, 2025 and 2024, respectively. If the first quarter 2024 results for our U.K. operations had been translated at the lower exchange rate of 2025, our adjusted operating revenue and adjusted operating income by segment would have both been lower by approximately $1 million and a de minimis amount, respectively, in the first quarter of 2024. However, it is important to distinguish between translating and converting foreign currency. Except for a limited number of transactions, we do not actually convert pounds into dollars. As a result, we view foreign currency translation as a financial reporting item and not a reflection of operations or profitability in the U.K.

Current wording

The weighted average pound/dollar exchange rate for our Unum UK line of business was 1.333 and 1.265 for the three months ended June 30, 2025 and 2024, and 1.299 and 1.265 for the six months ended June 30, 2025 and 2024, respectively. If the 2024 results for our U.K. operations had been translated at the weighted average exchange rates of 2025, our adjusted operating revenue would have been higher by approximately $13 million and $12 million, respectively, in the second quarter and first six months of 2024 and our adjusted operating income would have been higher by approximately $2 million for both the second quarter and first six months of 2024. However, it is important to distinguish between translating and converting foreign currency. Except for a limited number of transactions, we do not actually convert pounds into dollars. As a result, we view foreign currency translation as a financial reporting item and not a reflection of operations or profitability in the U.K.

Previous wording

Premium income increased in the first quarter of 2025 relative to the same period of 2024 in each of our principal operating business segments, primarily due to prior period sales and the impacts from the recapture of a previously ceded block of business in our Unum US individual disability product line in the first quarter of 2025. Premium income continues to decline, as expected, in our Closed Block segment.

Current wording

Premium income increased in each of our principal operating segments in the second quarter and first six months of 2025 compared to the same periods of 2024, primarily due to prior period sales and the impacts from the recapture of a previously ceded block of business in our Unum US individual disability product line that occurred in the first quarter of 2025, partially offset by the expected decline in medical stop-loss in our Unum US segment. Premium income continues to decline, as expected, in our Closed Block segment.

Previous wording

Our investment gains and losses on fixed maturity securities include net losses on sales of $44.7 million and $15.8 million in the first quarter of 2025 and 2024, respectively. The net losses for the first quarter of 2025 were primarily related to a realized loss of $23.5 million on sales of fixed maturity securities relating to our anticipated reinsurance transaction with Fortitude Re as well as a $19.1 million realized loss on sales of fixed maturity securities relating to funding of a dividend from one of our subsidiaries. Credit and impairment losses on fixed maturity securities were $153.4 million during first quarter of 2025, which is primally comprised of the $152.4 million impairment loss based on the intent to transfer fixed-maturity securities in anticipation of our reinsurance agreement with Fortitude Re. We did not recognize any credit nor impairment losses on fixed maturity securities during the first quarter of 2024. See Note 4 in the "Notes to Consolidated Financial Statements" contained herein in Item 1 and "Investments" contained herein in this Item 2 for further information.

Current wording

Our investment gains and losses on fixed maturity securities include net losses on sales of $13.5 million and $5.4 million in the second quarter of 2025 and 2024, respectively, and $58.2 million and $21.2 million in the first six months of 2025 and 2024, respectively. The net losses for the first six months of 2025 were primarily related to a realized loss of $23.5 million on sales of fixed maturity securities relating to our reinsurance transaction with Fortitude Re as well as a $19.1 million realized loss on sales of fixed maturity securities relating to funding of a dividend from one of our subsidiaries. Credit and impairment losses on fixed maturity securities were $19.1 million and $172.5 million during the second quarter and first six months of 2025, respectively. Credit and impairment losses on fixed maturity securities for the first six months of 2025 is primarily comprised of the $160.9 million impairment loss based on the intent to transfer fixed-maturity securities in anticipation of our reinsurance agreement with Fortitude Re. Credit and impairment losses on fixed maturity securities were $4.1 million during the second quarter and first six months of 2024. See Note 4 in the "Notes to Consolidated Financial Statements" contained herein in Item 1 and "Investments" contained herein in this Item 2 for further information.

Previous wording

Other income is primarily comprised of fee-based service products in the Unum US segment, which include leave management services and administrative services only business, and the underlying results and associated net investment income of certain assumed blocks of reinsured business in the Closed Block segment. Also included within other income is a gain on the recapture of a previously ceded block of business in the Unum US individual disability product line.

Current wording

Other income is primarily comprised of fee-based service products in the Unum US segment, which include leave management services and administrative services only business, and the underlying results and associated net investment income of certain assumed blocks of reinsured business in the Closed Block segment. Also included within other income for the first six months of 2025 is a gain on the recapture of a previously ceded block of business in the Unum US individual disability product line.

Previous wording

Overall benefits experience in the first quarter of 2025 was unfavorable relative to the same period of 2024 with a consolidated benefit ratio, which includes the remeasurement gain, of 69.2 percent and 68.4 percent, respectively. Excluding the impact of non-contemporaneous reinsurance, the consolidated benefit ratios were 69.0 percent and 68.1 percent in the first quarter of 2025 and 2024, respectively. The benefit ratio, which includes the remeasurement gain, for each of our operating business segments is discussed more fully in "Segment Results" as follows.

Current wording

Overall benefits experience was unfavorable in the second quarter and first six months of 2025 relative to the same periods of 2024. The consolidated benefit ratio, which includes the remeasurement gain or loss, was 71.9 percent and 70.6 percent in the second quarter and first six months of 2025, respectively, compared to 68.9 percent and 68.6 percent for the same prior year periods. Excluding the impact of non-contemporaneous reinsurance, the consolidated benefit ratio was 71.7 percent and 70.4 percent in the second quarter and first six months of 2025, respectively, compared to 68.6 percent and 68.4 percent for the same prior year periods. The benefit ratio, which includes the remeasurement gain or loss, for each of our operating business segments is discussed more fully in "Segment Results" as follows.

Previous wording

Commissions were higher during the first quarter of 2025 compared to the same period of 2024 primarily due to the impacts from the recapture of a previously ceded block of business in our Unum US individual disability product line in the first quarter of 2025 as well as prior period sales in our principal operating business segments. The deferral of acquisition costs was higher during the first quarter of 2025 compared to the same period of 2024 primarily due to increase in commissions and other sales-related costs in our Colonial Life segment. The amortization of deferred acquisition costs in the first quarter of 2025 compared to the same period of 2024 was generally consistent.

Current wording

Commissions were higher during the second quarter and first six months of 2025 compared to the same periods of 2024 primarily due to the continued impacts from the recapture of a previously ceded block of business in our Unum US individual disability product line that occurred in the first quarter of 2025 as well as prior period sales in our principal operating business segments. The deferral of acquisition costs was higher during the second quarter and first six months of 2025 compared to the same periods of 2024 primarily due to increase in commissions and other sales-related costs in our Colonial Life segment. The increase in the amortization of deferred acquisition costs in the second quarter and first six months of 2025 compared to the same periods of 2024 is due primarily to growth in the level of the deferred asset in our Colonial Life segment.

Previous wording

Other expenses and compensation expense, on a combined basis, increased in the first quarter of 2025 compared to the same period of 2024 due primarily to an increase in employee-related costs, operational investments in our business, and growth in our fee-based service products.

Current wording

Other expenses and compensation expense, on a combined basis, increased in the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to an increase in operational investments in our business and impacts from the recapture of a previously ceded block of business in our Unum US individual disability product line that occurred in the first quarter of 2025.

Previous wording

Our effective income tax rate for the first quarter of 2025 was 22.4 percent, compared to 20.3 percent for the same prior year period. Our effective income tax rate differed from the U.S. statutory rate of 21 percent for the first quarter of 2025 primarily due to interest on uncertain tax positions. Our effective income tax rate differed from the U.S. statutory rate of 21 percent for the first quarter of 2024 primarily due to prior year state taxes.

Current wording

Our effective income tax rates for the second quarter and first six months of 2025 were 19.5 percent and 20.6 percent of income before income tax, respectively, compared to 21.4 percent and 20.8 percent for the same prior year periods. Our effective income tax rate differed from the U.S. statutory rate of 21 percent for the second quarter of 2025 primarily due to tax exempt income. Our effective income tax rates were generally consistent with the U.S. statutory rate of 21 percent in effect for the second quarter of 2024 and for the first six months of 2025 and 2024.

Previous wording

Premium income was higher in the first quarter of 2025 compared to the same period of 2024 due primarily to prior period sales, partially offset by lower persistency and the decline in medical stop-loss premium. Net investment income was lower in the first quarter of 2025 relative to the same period of 2024 due to a lower level of invested assets and a decrease in the yield on invested assets. Other income, which primarily relates to fee-based service products, was generally consistent in the first quarter of 2025 compared to the same period of 2024.

Current wording

Premium income was consistent in the second quarter and first six months of 2025 compared to the same periods of 2024 due to the expected decline in medical stop-loss premium and lower persistency, mostly offset by an increase in premium income due to prior period sales. Net investment income was lower in the second quarter and first six months of 2025 compared to the same periods of 2024 due to a lower level of invested assets. Other income was generally consistent in the second quarter and first six months of 2025 compared to the same periods of 2024.

Previous wording

The benefit ratio was unfavorable in the first quarter of 2025 compared to the same period of 2024 due to higher incidence in our long-term disability and short-term disability product lines.

Current wording

The benefit ratio was unfavorable in the second quarter and first six months of 2025 compared to the same periods of 2024 due to lower recoveries in our long-term disability product line and higher average claims size in our short-term disability product line. Also contributing to the unfavorable benefit ratio in the first six months of 2025 compared to the same period of 2024 was higher incidence in our long-term disability product line.

Previous wording

Commissions were higher in the first quarter of 2025 compared to the same period of 2024 due primarily to higher prior period sales. The deferral of acquisition costs was generally consistent in the first quarter of 2025 compared to the same period of 2024. The amortization of deferred acquisition costs decreased in the first quarter of 2025 compared to the same period of 2024 primarily due to favorable lapse experience in recent issue year cohorts compared to expectations. The other expense ratio, which includes other income that is primarily related to fee-based service products, increased in the first quarter of 2025 compared to the same period of 2024 due primarily to an increase in employee related costs and operational investments in our business.

Current wording

Commissions were higher in the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to prior period sales. The deferral of acquisition costs were generally consistent in the second quarter and first six months of 2025 compared to the same periods of 2024. The amortization of deferred acquisition costs changed in the second quarter and first six months of 2025 compared to the same periods of 2024 due to the composition of lapses across cohorts. The other expense ratio, which includes other income that is primarily related to fee-based service products, was favorable in the second quarter of 2025 compared to the same period of 2024 due to our focus on expense management and operating efficiencies. The other expense ratio was generally consistent for the first six months of 2025 compared to the same period of 2024.

Previous wording

Premium income was higher in the first quarter of 2025 compared to the same period of 2024 due to higher sales and in-force block growth, partially offset by lower persistency. Net investment income was lower in the first quarter of 2025 relative to the same period of 2024 due to a decrease in the yield on invested assets and a decrease in the level of invested assets.

Current wording

Premium income increased in the second quarter and first six months of 2025 compared to the same periods of 2024 due to prior period sales and in-force block growth, partially offset by lower persistency. Net investment income was lower in the second quarter and first six months of 2025 compared to the same periods of 2024 due to a lower level of invested assets. Also impacting the comparison for the second quarter of 2025 compared to the same period of 2024 is a decrease in the yield on invested assets.

Previous wording

Commissions and deferral of acquisition costs were higher in the first quarter of 2025 compared to the same period of 2024 due to higher sales. The amortization of deferred acquisition costs in the first quarter of 2025 decreased compared to the same period of 2024 due to favorable lapse experience in recent issue year cohorts compared to expectations. The other expense ratio was generally consistent in the first quarter of 2025 compared to the same period of 2024.

Current wording

Commissions and the deferral of acquisition costs were higher in the second quarter and first six months of 2025 compared to the same period of 2024 due to prior period sales. The amortization of deferred acquisition costs decreased in the second quarter and the first six months of 2025 compared to the same periods of 2024 due to the composition of lapses across cohorts. The other expense ratio was favorable in the second quarter of 2025 compared to the same period of 2024 due to our focus on expense management and operating efficiencies. The other expense ratio was generally consistent during the first six months of 2025 compared to the same period of 2024.

Previous wording

Premium income was higher in the first quarter of 2025 compared to the same period of 2024 due to the impacts from the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025. Also impacting the comparison is favorable persistency and higher prior period sales in the voluntary benefits and dental and vision product lines. Net investment income was generally consistent in the first quarter of 2025 compared to the same period of 2024. Other income was higher in the first quarter of 2025 compared to 2024 due primarily to a gain on the recapture of a previously ceded block of business in the individual disability product line.

Current wording

Premium income was higher in the second quarter and first six months of 2025 compared to the same periods of 2024 due to the continued impacts from the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025, favorable persistency in the voluntary benefits and dental and vision product lines, and higher prior period sales in the voluntary benefits and individual disability product lines. Net investment income increased in the second quarter and first six months of 2025 compared to the same periods of 2024 primarily due to an increase in the yield on invested assets and an increase in the level of invested assets. Other income was generally consistent in the second quarter of 2025 compared to the same period of 2024 and was higher in the first six months of 2025 compared to the same period of 2024 due primarily to a gain on the recapture of a previously ceded block of business in the individual disability product line.

Previous wording

The benefit ratio for voluntary benefits was unfavorable in the first quarter of 2025 compared to the same period of 2024 primarily driven by less favorable benefit experience in the critical illness, accident, and hospital indemnity products. The benefit ratio for individual disability was favorable in the first quarter of 2025 compared to the same period of 2024 due primarily to favorable recoveries. The benefit ratio for dental and vision was unfavorable in the first quarter of 2025 compared to the same period of 2024 due primarily to higher claims incidence.

Current wording

The benefit ratio for voluntary benefits was favorable in the second quarter of 2025 compared to the same period of 2024 due to favorable benefit experience in the critical illness and hospital indemnity products, partially offset by unfavorable benefit experience in the life and accident products. The benefit ratio for voluntary benefits was unfavorable in the first six months of 2025 compared to the same period of 2024 due to unfavorable benefit experience in the critical illness, accident, and hospital indemnity products. The benefit ratio for the individual disability product line was unfavorable in the second quarter of 2025 compared to the same period of 2024 due primarily to lower recoveries. The benefit ratio for the individual disability product line was favorable in the first six months of 2025 compared to the same period of 2024 due primarily to higher recoveries. The benefit ratio for the dental and vision product line was unfavorable in the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to higher claims incidence.

Previous wording

Commissions were higher for the first quarter of 2025 relative to the same period of 2024 due primarily to the impacts from the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025 and higher sales in the voluntary benefits and the individual disability product lines. The deferral of acquisition costs, the amortization of deferred acquisition costs and other expense ratio were generally consistent in the first quarter of 2025 relative to the same period of 2024.

Current wording

Commissions were higher in the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to the continued impacts from the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025. The deferral of acquisition costs and the amortization of deferred acquisition costs were generally consistent in the second quarter and first six months of 2025 compared to the same periods of 2024. The other expense ratio was favorable in the second quarter and first six months of 2025 compared to the same periods of 2024 due to our focus on expense management and operating efficiencies.

Previous wording

Group sales decreased during the first quarter of 2025 compared to the same period of 2024 due primarily to lower sales to new customers in the large case market, lower sales to existing customers in the core market, which we define as employee groups with fewer than 2,000 employees, as well as the impact of no sales of our medical stop-loss product in the first quarter of 2025, which was no longer actively marketed as of the third quarter of 2024. The sales mix in the group market sector for the first three months of 2025 was approximately 59 percent core market and 41 percent large case market.

Current wording

Group sales decreased during the second quarter and first six months of 2025 compared to the same periods of 2024 due to lower sales to existing customers in the large case market, which we define as employee groups with greater than 2,000 employees, lower sales to new customers in the core market, as well as the impact of no sales of our medical stop-loss product in the first six months of 2025 as it was no longer actively marketed as of the third quarter of 2024. Partially offsetting the comparison for the second quarter of 2025 compared to the same period of 2024 was higher sales to new customers in the large case market. The sales mix in the group market sector for the first six months of 2025 was approximately 59 percent core market and 41 percent large case market.

Previous wording

Voluntary benefits sales increased during the first quarter of 2025 compared to the same period of 2024 due primarily to higher sales to new customers in both the large case and core markets. Individual disability sales, which are primarily concentrated in the multi-life market, increased in the first quarter of 2025 compared to the same period of 2024 due primarily to higher sales to new customers. Dental and vision sales decreased slightly in the first quarter of 2025 compared to the same period of 2024 due to lower sales to new customers, mostly offset by higher sales to existing customers.

Current wording

Voluntary benefits sales decreased during the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to lower sales to new and existing customers in the large case market. Partially offsetting the comparison for the first six months of 2025 compared to the same period of 2024 is higher sales to new and existing customers in the core market. Individual disability sales, which are primarily concentrated in the multi-life market, decreased in the second quarter of 2025 compared to the same period of 2024 due to lower sales to new and existing customers. Individual disability sales increased during the first six months of 2025 compared to the same period of 2024 primarily due to higher sales to new customers. Dental and vision sales decreased during the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to lower sales to new customers.

Previous wording

We expect strong adjusted operating income in 2025 with continued sales and premium growth. We expect the group disability market to remain competitive which may impact our pricing and renewal premium levels. We expect strong group disability claim experience to continue in 2025, driven by operational performance. We also expect group life claim experience to be mostly stable but may experience some quarterly claims volatility. We expect a decline in our supplemental and voluntary line of business adjusted operating income as a result of the reinsurance transaction with Fortitude Re. We expect a slight increase in our operating expense ratio as we continue to invest in our people and capabilities.

Current wording

We expect strong adjusted operating income in 2025 with premium growth driven by new sales and persistency. We expect the group disability market to remain competitive which may impact our pricing and renewal premium levels. We expect strong group disability claim experience to continue in 2025, driven by operational performance. We also expect group life claim experience to be mostly stable, but may experience some quarterly claims volatility. We expect a decline in our supplemental and voluntary line of business adjusted operating income following the closing of the reinsurance transaction with Fortitude Re. We expect a slight increase in our operating expense ratio as we continue to invest in our people and capabilities.

Previous wording

As previously discussed, we anticipate entering into a reinsurance agreement with Fortitude Re to cede a portion of our individual disability business during 2025. For further discussion, see “Executive Summary" contained herein in Item 2 and Note 14 of the "Notes to Consolidated Financial Statements" contained herein in Item 1.

Current wording

As previously discussed, we entered into a reinsurance agreement with Fortitude Re to cede a portion of our individual disability business. For further discussion, see “Executive Summary" contained herein in Item 2 and Note 14 of the "Notes to Consolidated Financial Statements" contained herein in Item 1.

Previous wording

Premium income was higher in the first quarter of 2025 compared to the same period of 2024 due primarily to in-force block growth.

Current wording

Premium income was higher in the second quarter and first six months of 2025 compared to the same periods of 2024 primarily due to in-force block growth in the group life and supplemental product lines.

Previous wording

Net investment income was higher in the first quarter of 2025 compared to the same period of 2024 due to higher income from inflation index-linked bonds. Our investments in inflation index-linked bonds support the claim liabilities associated with certain group policies that provide for inflation-linked increases in policy benefits. The change in net investment income attributable to these index-linked bonds is partially offset by a change in policy benefits related to the inflation index-linked group long-term disability and group life policies.

Current wording

Net investment income was higher in the second quarter and first six months of 2025 compared to the same periods of 2024 primarily due to higher income from inflation index-linked bonds. Our investments in inflation index-linked bonds support the claim liabilities associated with certain group policies that provide for inflation-linked increases in policy benefits. The change in net investment income attributable to these index-linked bonds is generally correlated to a change in policy benefits related to the inflation index-linked group long-term disability and group life policies.

Previous wording

Commissions were higher in the first quarter of 2025 relative to the same period of 2024 due primarily to in-force block growth. The deferral of acquisition costs and the amortization of deferred acquisition costs were generally consistent during the first quarter of 2025 with the same prior year period.

Current wording

The deferral of acquisition costs and the amortization of deferred acquisition costs were generally consistent in the second quarter and first six months of 2025 compared to the same periods of 2024. The other expense ratio was lower in the second quarter of 2025 compared to the same period of 2024 due primarily to our focus on operating efficiencies, and was generally consistent in the first six months of 2025 compared to the same period of 2024.

Previous wording

The following discussion of sales results relates only to our Unum UK product lines and is based on functional currency.

Current wording

The following discussion of sales results relates to our Unum UK product lines based on functional currency.