Unum Group

The Unum US segment is comprised of the group disability, group life and accidental death and dismemberment, and supplemental and voluntary lines of business. The group disability line of business includes long-term and short-term disability, medical stop-loss, and fee-based service products. The supplemental and voluntary line of business includes voluntary benefits, individual disability, and dental and vision products. These products, excluding medical stop-loss which was no longer actively marketed as of the third quarter of 2024, are marketed through our field sales personnel who work in conjunction with independent brokers and consultants.

Unum US Operating Results

Shown below are financial results for the Unum US segment. In the sections following, financial results and key ratios are also presented for the major lines of business within the segment.

Unum US Group Disability Operating Results

Shown below are financial results and key performance indicators for Unum US group disability.

Premium income was lower compared to 2024, driven by expected run-off in medical stop-loss premium and lower overall persistency, partially offset by an increase in premium due to sales. Net investment income was lower compared to 2024 due to a decrease in the level of invested assets. Other income, which primarily relates to fee-based service products, was generally consistent to 2024.

The benefit ratio, excluding the impacts of the reserve assumption updates, was less favorable compared to 2024 due to lower recoveries in our group long-term disability product line and higher average claim size in our group short-term disability product line.

Commissions were higher compared to 2024 due primarily to sales. The deferral of acquisition costs compared to 2024 were generally consistent. The amortization of deferred acquisition costs was lower compared to 2024 due to the change in composition of lapses across cohorts. The other expense ratio, which includes other income that is primarily related to fee-based service products, increased compared to 2024 due primarily to operational investments in our business.

Premium income was higher compared to 2023, driven primarily by favorable persistency and higher sales, excluding medical stop-loss. Net investment income was lower compared to 2023 due to a decrease in the level of invested assets and lower miscellaneous investment income, partially offset by an increase in the yield on invested assets. Other income increased relative to 2023 due to growth in our fee-based service products.

The benefit ratio, excluding the impacts of the reserve assumption updates, was generally consistent compared to 2023 with favorable medical stop-loss benefits experience and favorable recoveries in the group long-term disability product line, mostly offset by higher incidence in our group long-term and group short-term disability product lines.

Commissions and the deferral of acquisition costs were higher compared to 2023 due to higher sales, excluding medical stop-loss. The amortization of deferred acquisition costs was higher compared to 2023 due to growth in the level of the deferred asset. The other expense ratio, which includes other income that is primarily related to fee-based service products, was generally consistent compared to 2023.

Unum US Group Life and Accidental Death and Dismemberment Operating Results

Shown below are financial results and key performance indicators for Unum US group life and accidental death and dismemberment.

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

The benefit ratio, excluding the impacts of the reserve assumption updates, was less favorable compared to 2024 due to higher average claim size in our group life product line, partially offset by favorable incidence in the group life and accidental death and dismemberment product lines.

Commissions and the deferral of acquisition costs were higher compared to 2024 due primarily to sales. The amortization of deferred acquisition costs was generally consistent compared to 2024. The other expense ratio was also generally consistent compared to 2024.

Premium income was higher compared to 2023 driven primarily by favorable persistency and higher sales. Net investment income was lower compared to 2023 due to a decrease in the level of invested assets partially offset by an increase in the yield on invested assets.

The benefit ratio, excluding the impact of the reserve assumption update in 2024, was favorable compared to 2023 due to lower mortality across all product lines.

Commissions and the deferral of acquisition costs were higher compared to 2023 due primarily to higher sales. The amortization of deferred acquisition costs was generally consistent compared to 2023. The other expense ratio was consistent compared to 2023.

Unum US Supplemental and Voluntary Operating Results

Shown below are financial results and key performance indicators for Unum US supplemental and voluntary product lines.

Premium income was higher compared to 2024 due to the continued impacts from the recapture of a previously ceded block of business in the individual disability product line, higher prior period sales in the voluntary benefits product line, and favorable persistency in the voluntary benefits and dental and vision product lines, partially offset by the impact of ceding a portion of the individual disability product line as a part of the Fortitude Re reinsurance transaction. Net investment income was lower compared to 2024 primarily due to a decrease in the level of invested assets. Other income, excluding the impact of the amortization of the deferred gain on reinsurance, was higher compared to 2024, due primarily to a gain on the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025.

The benefit ratio for voluntary benefits, excluding the impacts of the reserve assumption updates was unfavorable compared to 2024 due primarily to unfavorable benefit experience in the critical illness, hospital indemnity, and accident products. The benefit ratio for the individual disability product line, excluding the impacts of non-contemporaneous reinsurance and the reserve assumption updates, was favorable compared to 2024 due to higher claim resolutions driven by mortality, partially offset by higher claim incidence. The benefit ratio for the dental and vision product line was unfavorable compared to 2024 due primarily to higher claim incidence and higher average claim size.

Commissions were higher compared to 2024 due primarily to the continued impacts from the recapture of a previously ceded block of business in the individual disability product line and higher prior period sales in the voluntary benefits product line, partially offset by the impacts from the Fortitude Re reinsurance transaction. The deferral of acquisition costs were higher compared to 2024 due primarily to higher sales in the individual disability product line. The amortization of deferred acquisition costs was lower compared to 2024 due primarily to a reduction in the level of the deferred asset as a result of the Fortitude Re reinsurance transaction. The other expense ratio was generally consistent compared to 2024.

Premium income was higher compared to 2023 due primarily to favorable persistency and higher sales in the voluntary benefits and dental and vision product lines. Also impacting the comparison was the impacts from the partial recapture of a previously ceded block of business in the individual disability product line in the third quarter of 2023. Net investment income was higher compared to 2023 primarily due to an increase in the yield on invested assets. Other income was lower compared to 2023 due primarily to a prior year net gain on the partial recapture of a previously ceded block of business in the individual disability product line in the third quarter of 2023.

The benefit ratio for voluntary benefits, excluding the impacts of the reserve assumption updates, was unfavorable compared to 2023 due primarily to unfavorable benefit experience in the accident, critical illness, and hospital indemnity products. The benefit ratio for the individual disability product line, excluding the impacts of the reserve assumption updates, was favorable compared to 2023 due primarily to favorable recoveries, partially offset by higher claim size. The benefit ratio for the dental and vision product line was unfavorable compared to 2023 due primarily to higher claims incidence and higher average claim size.

Commissions and the deferral of acquisition costs were higher compared to 2023 due primarily to higher sales in the voluntary benefits product line. Commissions were also higher compared to 2023 due to the continued impacts from the partial recapture of a previously ceded block of business in the individual disability product line in the third quarter of 2023. The amortization of deferred acquisition costs was higher compared to 2023 due to the increased lapses in certain older voluntary benefits products and growth in the level of the deferred asset in all product lines. The other expense ratio was generally consistent compared to 2023.

Sales

Group sales increased slightly compared to 2024 primarily due to higher sales to new customers in both the core market, which we define as employee groups with fewer than 2,000 employees, and the large case market, partially offset by lower sales to existing customers in the large case and core markets, as well as the impact of no sales of our medical stop-loss product, which was no longer actively marketed as of the third quarter of 2024. The sales mix in the group market sector for 2025 was approximately 60 percent core market and 40 percent large case market.

Voluntary benefits sales decreased compared to 2024 primarily due to lower sales to new and existing customers in the large case market, partially offset by higher sales to existing customers in the core market. Individual disability sales, which are primarily concentrated in the multi-life market, increased compared to 2024 due to higher sales to both new and existing customers. Dental and vision sales decreased compared to 2024 due to lower sales to new customers.

Group sales increased compared to 2023 primarily due to higher sales to new customers in both the large case market and the core market, partially offset by the decline in sales of our medical stop-loss product. The sales mix in the group market sector for 2024 was approximately 58 percent core market and 42 percent large case market.

Voluntary benefits sales increased compared to 2023 primarily due to higher sales to new customers in both the large case and

the core market. Individual disability sales decreased compared to 2023 due to lower sales to new customers, partially offset by higher sales to existing customers. Dental and vision sales increased compared to 2023 driven by higher sales to new and existing customers.

We had total goodwill of $281.2 million for the Unum US segment at December 31, 2025, none of which is currently believed to be at risk for future impairment.

We remain committed to offering consumers a broad set of financial protection benefit products at the worksite. During 2026, we will continue to invest in a unique customer experience defined by simplicity, empathy, and deep industry expertise through the increased utilization of digital capabilities and technology to enhance enrollment, underwriting, the client administration experience, and claims processing. In addition, we will focus on strategically driven sales by enhancing the connectivity, alignment, and support for brokers and technology partners, including integration with human capital management systems. We will continue to provide a comprehensive set of consumer-focused products, enhance our distribution model, and utilize our digital tools to bring industry leading enrollment capabilities and a fully integrated customer experience. We believe our differentiated offerings and market leading leave management services provide substantial growth opportunities and stronger persistency. We believe our active client management, integrated customer experience across our product lines, and strong risk management, will enable us to continue to grow our market over the long-term.

We expect strong adjusted operating income in 2026 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 2026, driven by operational performance. We also expect group life claim experience to be mostly stable, but may experience some quarterly claims volatility. We expect growth in our supplemental and voluntary line of business adjusted operating income. We expect to maintain expense discipline with a slight decrease in our other expense ratio.

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 yields on new investments, but could also reduce unrealized losses in our current holdings. Our net investment income may continue to be impacted by volatility in miscellaneous investment income.

As part of our discipline in pricing and reserving, we continuously monitor emerging claim trends and interest rates. We will continue to take appropriate pricing actions on new business and renewals that are reflective of the current environment.

We continuously monitor key indicators to assess our risks and adjust our business plans accordingly.