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 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.

Unum US Group Disability Operating Results

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

Premium income increased in the second quarter and first six months of 2026 compared to the same periods of 2025 due to sales and higher persistency, partially offset by the expected run off in medical stop-loss premium. Net investment income was generally consistent in the second quarter and the first six months of 2026 relative to the same periods of 2025.

Other income was higher in the second quarter and first six months of 2026 compared to the same periods of 2025 due to growth in our fee-based service products.

The benefit ratio was higher in the second quarter and first six months of 2026 compared to the same periods of 2025 due to higher incidence in the short-term disability product line, primarily related to our paid family and medical leave products. Also contributing to the higher benefit ratio in both the second quarter and first six months of 2026 compared to the same periods of 2025 were prior period pricing actions.

Commissions and the deferral of acquisition costs were higher in the second quarter and first six months of 2026 compared to the same periods of 2025 due primarily to sales. The amortization of deferred acquisition costs changed in the second quarter and first six months of 2026 compared to the same periods of 2025 driven by composition of lapses across cohorts. The other expense ratio was lower in the second quarter and first six months of 2026 compared to the same periods 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.

Premium income increased in the second quarter and first six months of 2026 compared to the same periods of 2025 due to sales and higher persistency. Net investment income was higher in the second quarter and first six months of 2026 compared to the same periods of 2025 due to an increase in the allocation of net investment income on corporate owned excess assets. Also impacting the increase in net investment income in first six months of 2026 compared to the same period of 2025 is an increase in the yield on invested assets.

The benefit ratio was lower in the second quarter and first six months of 2026 compared to the same periods of 2025 due to lower claim incidence in the group life and accidental death and dismemberment product lines. Partially offsetting the comparison in the second quarter of 2026 compared to 2025 is higher average claim size in the accidental death and dismemberment product line.

Commissions and the deferral of acquisition costs were higher in the second quarter and first six months of 2026 compared to the same periods of 2025 due to sales. The amortization of deferred acquisition costs was higher in the second quarter and first six months of 2026 compared to the same periods 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 higher in the second quarter and first six months of 2026 compared to the same periods of 2025 due primarily 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.

Premium income was lower in the second quarter and first six months of 2026 compared to the same periods of 2025 due to the impact of ceding a portion of the individual disability product line as a part of the 2025 Fortitude Re reinsurance transaction and lower persistency across all product lines, partially offset by sales in all product lines. Net investment income was generally consistent in the second quarter and first six months of 2026 compared to the same periods of 2025.

Other income was higher in the second quarter of 2026 compared to the same period of 2025 due to the amortization of the deferred gain on reinsurance related to the 2025 Fortitude Re reinsurance transaction. Other income was lower in the first six months of 2026 compared to the same period of 2025 due to a gain on recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025, partially offset by the amortization of the deferred gain on reinsurance related to the 2025 Fortitude Re reinsurance transaction in the first six months of 2026.

The benefit ratio was lower in the second quarter of 2026 compared to the same period of 2025 due primarily to lower incidence in the individual disability product line, partially offset by higher incidence in the voluntary benefits product line. The benefit ratio was higher in the first six months of 2026 compared to the same period of 2025 due to higher average new claim size in the individual disability product line and higher incidence in the voluntary benefits product line.

Commissions and deferral of acquisition costs were higher in the second quarter and first six months of 2026 compared to the same periods of 2025 due primarily to sales. The amortization of deferred acquisition costs was lower in the second quarter and first six months of 2026 compared to the same periods of 2025 due primarily to a reduction in the level of the deferred asset as a result of the 2025 Fortitude Re reinsurance transaction. The other expense ratio was lower in the second quarter of 2026 compared to the same period of 2025 due to our focus on expense management and operating efficiencies. The other expense ratio was generally consistent in the first six months of 2026 compared to the same period of 2025.

Sales

Group sales increased during the second quarter and the first six months of 2026 compared to the same periods 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 existing customers in the large case market, partially offset by lower sales to new customers in the large case market. The sales mix in the group market sector for the first six months of 2026 was approximately 62 percent core market and 38 percent large case market.

Supplemental and voluntary sales increased during the second quarter and the first six months of 2026 compared to the same periods 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, but may experience elevated experience related to our paid family and medical leave products. 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.