Unum Group
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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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, 2026 · Filed Apr 29, 2026
Contents
Unum US Segment
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 disability, short-term disability and our fee-based service products. Long-term disability includes medical stop-loss products, and short-term disability includes paid family and medical leave 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 is 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.
| (in millions of dollars, except ratios) | ||||
|---|---|---|---|---|
| Three Months Ended March 31 | ||||
| 2026 · % Change · 2025 | ||||
| Segment Adjusted Operating Revenue | ||||
| Premium Income | $1,840.5 | 3.3% | $1,780.9 | |
| Net Investment Income | 158.3 | 6.3 | 148.9 | |
| Other Income | 66.8 | (7.1) | 71.9 | |
| Total | 2,065.6 | 3.2 | 2,001.7 | |
| Benefits and Expenses | ||||
| Policy Benefits | 1,127.1 | (1.0) | 1,138.6 | |
| Policy Benefits - Remeasurement Gain | (31.8) | (57.8) | (75.4) | |
| Commissions | 219.4 | 6.7 | 205.6 | |
| Deferral of Acquisition Costs | (91.6) | 8.1 | (84.7) | |
| Amortization of Deferred Acquisition Costs | 68.7 | 5.4 | 65.2 | |
| Other Expenses | 435.9 | 3.0 | 423.3 | |
| Total | 1,727.7 | 3.3 | 1,672.6 | |
| Segment Adjusted Operating Income | $337.9 | 2.7 | $329.1 | |
| Segment Operating Ratios (% of Premium Income): | ||||
| Benefit Ratio | 59.5% | 59.7% | ||
| Other Expense Ratio1 | 22.9% | 23.0% | ||
| Segment Adjusted Operating Income Ratio | 18.4% | 18.5% | ||
| 1Ratio of Other Expenses to Premium Income plus Unum US Group Disability Other Income, which is primarily related to fee-based services. | ||||
Unum US Group Disability Operating Results
Shown below are financial results and key performance indicators for Unum US group disability.
| (in millions of dollars, except ratios) | ||||
|---|---|---|---|---|
| Three Months Ended March 31 | ||||
| 2026 · % Change · 2025 | ||||
| Segment Adjusted Operating Revenue | ||||
| Premium Income | ||||
| Group Long-term Disability | $498.8 | (1.1)% | $504.5 | |
| Group Short-term Disability | 310.7 | 11.6 | 278.3 | |
| Total Premium Income | 809.5 | 3.4 | 782.8 | |
| Net Investment Income | 76.0 | 2.7 | 74.0 | |
| Other Income | 60.9 | 8.8 | 56.0 | |
| Total | 946.4 | 3.7 | 912.8 | |
| Benefits and Expenses | ||||
| Policy Benefits | 531.6 | 0.5 | 528.9 | |
| Policy Benefits - Remeasurement Gain | (15.9) | (64.8) | (45.2) | |
| Commissions | 69.8 | 7.4 | 65.0 | |
| Deferral of Acquisition Costs | (16.3) | 1.2 | (16.1) | |
| Amortization of Deferred Acquisition Costs | 13.9 | 33.7 | 10.4 | |
| Other Expenses | 256.7 | 2.4 | 250.6 | |
| Total | 839.8 | 5.8 | 793.6 | |
| Segment Adjusted Operating Income | $106.6 | (10.6) | $119.2 | |
| Operating Ratios (% of Premium Income): | ||||
| Benefit Ratio | 63.7% | 61.8% | ||
| Other Expense Ratio1 | 29.5% | 29.9% | ||
| Segment Adjusted Operating Income Ratio | 13.2% | 15.2% | ||
| Persistency: | ||||
| Group Long-term Disability | 92.2% | 90.7% | ||
| Group Short-term Disability | 90.7% | 87.5% | ||
| 1Ratio of Other Expenses to Premium Income plus Other Income, which is primarily related to fee-based services. | ||||
Premium income was higher in the first quarter of 2026 compared to the same period of 2025 due primarily to favorable persistency and prior period sales, partially offset by the expected run off in medical stop-loss premium. Net investment income was generally consistent in the first quarter of 2026 relative to the same period of 2025. Other income was higher in the first quarter of 2026 compared to the same period of 2025 due to growth in our fee-based service products.
The benefit ratio was less favorable in the first quarter of 2026 compared to the same period of 2025 due to pricing actions as well as higher paid family and medical leave incidence.
Commissions were higher in the first quarter of 2026 compared to the same period of 2025 due primarily to sales. The deferral of acquisition costs was generally consistent in the first quarter of 2026 compared to the same period of 2025. The amortization of deferred acquisition costs increased in the first quarter of 2026 compared to the same period of 2025 primarily due to composition of lapses across cohorts. The other expense ratio, which includes other income that is primarily related to fee-based service products, decreased in the first quarter of 2026 compared to the same period of 2025 due primarily to our focus on expense management and operating efficiencies.
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.
| (in millions of dollars, except ratios) | ||||
|---|---|---|---|---|
| Three Months Ended March 31 | ||||
| 2026 · % Change · 2025 | ||||
| Segment Adjusted Operating Revenue | ||||
| Premium Income | ||||
| Group Life | $495.4 | 6.3% | $466.2 | |
| Accidental Death & Dismemberment | 53.0 | 10.0 | 48.2 | |
| Total Premium Income | 548.4 | 6.6 | 514.4 | |
| Net Investment Income | 23.5 | 29.1 | 18.2 | |
| Other Income | 0.7 | N.M. | 0.1 | |
| Total | 572.6 | 7.5 | 532.7 | |
| Benefits and Expenses | ||||
| Policy Benefits | 360.6 | (4.5) | 377.6 | |
| Policy Benefits - Remeasurement Gain | (21.9) | 4.8 | (20.9) | |
| Commissions | 51.1 | 8.7 | 47.0 | |
| Deferral of Acquisition Costs | (12.3) | 6.0 | (11.6) | |
| Amortization of Deferred Acquisition Costs | 8.7 | 42.6 | 6.1 | |
| Other Expenses | 71.3 | 9.2 | 65.3 | |
| Total | 457.5 | (1.3) | 463.5 | |
| Segment Adjusted Operating Income | $115.1 | 66.3 | $69.2 | |
| Operating Ratios (% of Premium Income): | ||||
| Benefit Ratio | 61.8% | 69.3% | ||
| Other Expense Ratio | 13.0% | 12.7% | ||
| Segment Adjusted Operating Income Ratio | 21.0% | 13.5% | ||
| Persistency: | ||||
| Group Life | 92.6% | 89.2% | ||
| Accidental Death & Dismemberment | 92.2% | 87.9% | ||
Premium income was higher in the first quarter of 2026 compared to the same period of 2025 due to favorable persistency and prior period sales. Net investment income was higher in the first quarter of 2026 relative to the same period of 2025 due to an increase in the allocation of net investment income on corporate owned excess assets as well as an increase in the yield on invested assets.
The benefit ratio in the first quarter of 2026 was favorable compared to the same period of 2025 due to lower claim incidence in the group life and accidental death and dismemberment product lines.
Commissions and deferral of acquisition costs were higher in the first quarter of 2026 compared to the same period of 2025 due to sales. The amortization of deferred acquisition costs in the first quarter of 2026 increased compared to the same period of 2025 due to growth in the level of the deferred asset as well as the composition of lapses across cohorts. The other expense ratio was unfavorable in the first quarter of 2026 compared to the same period of 2025 due to an increase in operational investments in our business.
Unum US Supplemental and Voluntary Operating Results
Shown below are financial results and key performance indicators for Unum US supplemental and voluntary product lines.
| (in millions of dollars, except ratios) | ||||
|---|---|---|---|---|
| Three Months Ended March 31 | ||||
| 2026 · % Change · 2025 | ||||
| Segment Adjusted Operating Revenue | ||||
| Premium Income | ||||
| Voluntary Benefits | $253.8 | 8.4% | $234.1 | |
| Individual Disability | 146.5 | (13.2) | 168.7 | |
| Dental and Vision | 82.3 | 1.7 | 80.9 | |
| Total Premium Income | 482.6 | (0.2) | 483.7 | |
| Net Investment Income | 58.8 | 3.7 | 56.7 | |
| Other Income | 5.2 | (67.1) | 15.8 | |
| Total | 546.6 | (1.7) | 556.2 | |
| Benefits and Expenses | ||||
| Policy Benefits | 234.9 | 1.2 | 232.1 | |
| Policy Benefits - Remeasurement Loss (Gain) | 6.0 | 164.5 | (9.3) | |
| Commissions | 98.5 | 5.2 | 93.6 | |
| Deferral of Acquisition Costs | (63.0) | 10.5 | (57.0) | |
| Amortization of Deferred Acquisition Costs | 46.1 | (5.3) | 48.7 | |
| Other Expenses | 107.9 | 0.5 | 107.4 | |
| Total | 430.4 | 3.6 | 415.5 | |
| Segment Adjusted Operating Income | $116.2 | (17.4) | $140.7 | |
| Operating Ratios (% of Premium Income): | ||||
| Benefit Ratio | 49.9% | 46.1% | ||
| Other Expense Ratio | 22.4% | 22.2% | ||
| Segment Adjusted Operating Income Ratio | 24.1% | 29.1% | ||
| Persistency: | ||||
| Voluntary Benefits | 75.8% | 76.8% | ||
| Individual Disability | 87.9% | 88.2% | ||
| Dental and Vision | 79.9% | 82.2% | ||
Premium income was slightly lower in the first quarter of 2026 compared to the same period of 2025 due to the impact of ceding a portion of the individual disability product line as a part of the Fortitude Re reinsurance transaction and lower persistency across all product lines, mostly offset by sales in the voluntary benefits and individual disability product lines. Net investment income was generally consistent in the first quarter of 2026 compared to the same period of 2025. Other income was lower in the first quarter of 2026 compared to the same period of 2025 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. Other income for the first quarter of 2026 includes the amortization of the deferred gain on reinsurance related to the Fortitude Re reinsurance transaction.
The benefit ratio was less favorable in the first quarter of 2026 compared to the same period of 2025 primarily driven by higher average claim size in the individual disability product line and higher claim incidence within the individual disability and voluntary benefits product lines.
Commissions and the deferral of acquisition costs were higher for the first quarter of 2026 compared to the same periods of 2025 due primarily to sales. The amortization of deferred acquisition costs was lower in the first quarter of 2026 compared to the same period of 2025 due to a decrease in the level of the deferred asset as a result of the Fortitude Re reinsurance transaction. The other expense ratio was generally consistent in the first quarter of 2026 relative to the same period of 2025.
Sales
| (in millions of dollars) | |||
|---|---|---|---|
| Three Months Ended March 31 | |||
| 2026 | % Change | 2025 | |
| Sales by Market Sector | |||
| Group Disability and Group Life and AD&D | |||
| Core Market (< 2,000 employees) | $93.5 | 31.9% | $70.9 |
| Large Case Market | 52.3 | 7.8 | 48.5 |
| Subtotal | 145.8 | 22.1 | 119.4 |
| Supplemental and Voluntary | 189.3 | 19.7 | 158.1 |
| Total Sales | $335.1 | 20.8 | $277.5 |
Group sales increased during the first quarter of 2026 compared to the same period of 2025 due primarily to higher sales to new customers in the core market, which we define as employee groups with less than 2,000 employees, and higher sales to new customers in the large case market. The sales mix in the group disability and group life and accidental death and dismemberment product lines for the first three months of 2026 was approximately 64 percent in the core market and 36 percent in the large case market.
Supplemental and voluntary sales increased during the first quarter of 2026 compared to the same period of 2025 due primarily to higher sales to new customers in the large case market for the voluntary benefits product line.
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 segment 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 generally consistent with prior year, 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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.