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 2026 was higher compared to the same periods of 2025 due to prior period sales. Net investment income was higher in the third quarter and first nine months of 2026 relative to the same periods of 2025 due to an increase in the level of invested assets, an increase in the allocation of net investment income from our corporate owned excess assets, and an increase in the yield on invested assets.

The benefit ratio was lower in the third quarter and first nine months of 2026 relative to the same periods of 2025 primarily due to more favorable reserve assumption updates in the third quarter of 2026 as well as favorable claims experience in the cancer and critical illness and life product lines.

Commissions and the deferral of acquisition costs were higher in the third quarter and first nine months of 2026 relative to the same periods of 2025 due to prior period sales. The amortization of deferred acquisition costs was higher during the third quarter and the first nine months of 2026 relative to the same periods of 2025 primarily due to growth in the level of the deferred asset. The other expense ratio was lower in the third quarter of 2026 compared to the same period of 2025 primarily due to our focus on expense management and operating efficiencies. The other expense ratio was generally consistent in the first nine months of 2026 compared to the same period of 2025.

Sales

Commercial sector sales increased in the third quarter and first nine months of 2026 compared to the same periods of 2025 due primarily to higher sales to new and existing customers in the large case market, which we define as accounts with more than 1,000 employees, as well as in the core market. Public sector sales increased in the third quarter and first nine months of 2026 compared to the same periods of 2025 due to higher sales to new and existing customers.

We remain committed to providing employees and their families with simple, modern, and personal benefit solutions. By continuing to utilize our extensive distribution system of independent agents, benefit counselors and broker partnerships during 2026, we believe we will deliver business growth. We will also continue to invest in solutions and digital capabilities to expand our reach and effectiveness, which we believe will drive growth and improve productivity while enhancing the customer experience. In 2026, we will continue to bring an enhanced engagement and enrollment platform to market, which we believe will enable deeper connections with employees through the enrollment process and help us maintain stronger relationships throughout the customer lifecycle. We believe our distribution system, customer service capabilities, digital tools, and ability to serve all market sizes position us well for future growth.

In 2026, we expect growth in segment adjusted operating income for the full year with continued premium growth and stable claim experience. We continuously monitor key indicators to assess our risks and adjust our business plans accordingly.