Unum Group
For the period ended Jun 30, 2025. Filed Jul 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.
Jun 30, 2025 · Filed Jul 30, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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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 June 30 · Six Months Ended June 30 | ||||||||||
| 2025 · % Change · 2024 · 2025 · % Change · 2024 | ||||||||||
| Adjusted Operating Revenue | ||||||||||
| Premium Income | ||||||||||
| Accident, Sickness, and Disability | $249.1 | 3.1% | $241.7 | $496.2 | 2.3% | $484.9 | ||||
| Life | 122.1 | 6.0 | 115.2 | 242.0 | 5.4 | 229.5 | ||||
| Cancer and Critical Illness | 90.9 | 1.8 | 89.3 | 181.2 | 1.4 | 178.7 | ||||
| Total Premium Income | 462.1 | 3.6 | 446.2 | 919.4 | 2.9 | 893.1 | ||||
| Net Investment Income | 42.6 | 5.2 | 40.5 | 84.8 | 6.3 | 79.8 | ||||
| Other Income | 0.3 | 50.0 | 0.2 | 0.7 | (78.1) | 3.2 | ||||
| Total | 505.0 | 3.7 | 486.9 | 1,004.9 | 3.0 | 976.1 | ||||
| Benefits and Expenses | ||||||||||
| Policy Benefits | 226.0 | 1.4 | 222.9 | 452.6 | 0.7 | 449.6 | ||||
| Policy Benefits - Remeasurement Gain | (2.8) | (70.5) | (9.5) | (11.3) | (40.8) | (19.1) | ||||
| Commissions | 98.6 | 4.9 | 94.0 | 195.9 | 3.5 | 189.2 | ||||
| Deferral of Acquisition Costs | (83.6) | 6.8 | (78.3) | (166.2) | 5.5 | (157.6) | ||||
| Amortization of Deferred Acquisition Costs | 58.0 | 6.8 | 54.3 | 115.7 | 6.8 | 108.3 | ||||
| Other Expenses | 91.4 | 5.5 | 86.6 | 185.1 | 5.7 | 175.1 | ||||
| Total | 387.6 | 4.8 | 370.0 | 771.8 | 3.5 | 745.5 | ||||
| Adjusted Operating Income | $117.4 | 0.4 | $116.9 | $233.1 | 1.1 | $230.6 | ||||
| Operating Ratios (% of Premium Income): | ||||||||||
| Benefit Ratio | 48.3% | 47.8% | 48.0% | 48.2% | ||||||
| Other Expense Ratio | 19.8% | 19.4% | 20.1% | 19.6% | ||||||
| Adjusted Operating Income Ratio | 25.4% | 26.2% | 25.4% | 25.8% | ||||||
| Persistency: | ||||||||||
| Accident, Sickness, and Disability | 74.2% | 73.4% | ||||||||
| Life | 84.1% | 84.8% | ||||||||
| Cancer and Critical Illness | 82.5% | 82.0% | ||||||||
Premium income in the second quarter and first six months of 2025 was higher compared to the same periods of 2024 due to prior period sales and favorable overall persistency. Net investment income increased during the second quarter and first six months of 2025 relative to the same periods of 2024 due to an increase in the level of invested assets and an increase in the yield on invested assets.
The benefit ratio was unfavorable in the second quarter of 2025 relative to the same period of 2024 primarily due to unfavorable benefit experience in the accident, sickness, and disability product line. The benefit ratio was favorable in the first six months of 2025 relative to the same period of 2024 primarily due to favorable benefit experience in the life product line, partially offset by unfavorable benefit experience in the accident, sickness and disability product line.
Commissions were higher in the second quarter and first six months of 2025 relative to the same periods of 2024 due to prior period sales. The deferral of acquisition costs was higher in the second quarter andthe firstsix months of 2025 relative to the same periods of 2024 due to the increase in commissions and other sales-related costs. The amortization of deferred acquisition costs was higher during the second quarter and thefirst six months of 2025 relative to the same periods of 2024 primarily due to growth in the level of the deferred asset. The other expense ratio increased in the second quarter and first six months of 2025 relative to the same periods 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 June 30 | Six Months Ended June 30 | |||||
| 2025 | % Change | 2024 | 2025 | % Change | 2024 | |
| Sales by Product | ||||||
| Accident, Sickness, and Disability | $78.0 | 2.9% | $75.8 | $144.2 | 2.7% | $140.4 |
| Life | 30.5 | 2.3 | 29.8 | 55.5 | 1.6 | 54.6 |
| Cancer and Critical Illness | 18.0 | 4.0 | 17.3 | 32.1 | 3.9 | 30.9 |
| Total Sales | $126.5 | 2.9 | $122.9 | $231.8 | 2.6 | $225.9 |
| Sales by Market Sector | ||||||
| Commercial Sector | ||||||
| Core Market (< 1,000 employees) | $79.3 | 0.6% | $78.8 | $149.1 | (0.9)% | $150.5 |
| Large Case Market | 14.3 | 18.2 | 12.1 | 23.6 | 10.8 | 21.3 |
| Subtotal | 93.6 | 3.0 | 90.9 | 172.7 | 0.5 | 171.8 |
| Public Sector | 32.9 | 2.8 | 32.0 | 59.1 | 9.2 | 54.1 |
| Total Sales | $126.5 | 2.9 | $122.9 | $231.8 | 2.6 | $225.9 |
Commercial sector sales increased in the second quarter of 2025 compared to the same period of 2024 due primarily to higher sales to new customers in the core market, which we define as accounts with less than 1,000 employees, and higher sales to new and existing customers in the large case market, partially offset by lower sales to existing customers in the core market. Commercial sector sales increased in the first six months of 2025 compared to the same period of 2024 due primarily to higher sales to new customers in the large case market, partially offset by lower sales to existing customers in the core market. Public sector sales increased in the second quarter and first six months of 2025 compared to the same periods of 2024 due to higher sales to existing customers. Public sector sales for the first six months of 2025 compared to the same period of 2024 also increased due to higher sales to new 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.