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 2025 was higher compared to the same periods of 2024 due to favorable overall persistency and prior period sales. Net investment income increased during the third quarter and first nine 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, excluding the impacts of the reserve assumption updates, was less favorable in the third quarter of 2025 relative to the same period of 2024 primarily due to unfavorable benefit experience in the cancer and critical illness product line. The benefit ratio, excluding the impacts of the reserve assumption updates, was generally consistent in the first nine months of 2025 relative to the same period of 2024 with unfavorable benefit experience in the cancer and critical illness product line, mostly offset by favorable benefit experience in the life product line.

Commissions were higher in the third quarter and first nine months of 2025 relative to the same periods of 2024 due to prior period sales. The deferral of acquisition costs washigher in the third quarter andthe first nine 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 third quarter and the first nine 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 third quarter and first nine months of 2025 relative to the same periods of 2024 due primarily to an increase in employee-related costs and operational investments in our business.

Sales

Commercial sector sales increased in the third quarter and first nine months of 2025 compared to the same periods of 2024 due primarily to higher sales to new and existing customers in the core market, which we define as accounts with less than 1,000 employees. Partially offsetting the comparison for the third quarter of 2025 compared to the same period of 2024 was lower sales to new customers in the large case market. Public sector sales decreased in the third quarter of 2025 compared to the same period of 2024 due to lower sales to new customers, partially offset by higher sales to existing customers. Public sector sales increased in the first nine months of 2025 compared to the same period of 2024 due to higher sales to existing customers, partially offset by lower 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.