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 third quarter and first nine 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 higher in the third 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 and higher miscellaneous investment income. Net investment income was higher in the first nine months 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 yield on invested assets, partially offset by a decrease in the level of invested assets.

Other income was higher in the third quarter and first nine 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 third quarter and first nine months of 2026 compared to the same periods of 2025 due to less favorable reserve assumption updates and refinements in the third quarter of 2026 compared to prior year, higher incidence, and prior period pricing actions. Also contributing to the higher benefit ratio in the third quarter of 2026 was higher average claim size in long-term disability.

Commissions and the deferral of acquisition costs were higher in the third quarter and first nine months of 2026 compared to the same periods of 2025 due primarily to sales. The amortization of deferred acquisition costs was higher in the third quarter and first nine 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 lower in the third quarter and first nine 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 third quarter and first nine months of 2026 compared to the same periods of 2025 due to higher persistency and sales. Net investment income was higher in the third quarter and first nine 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 as well as an increase in yield on invested assets.

The benefit ratio was higher in the third quarter of 2026 compared to the same period in 2025 due to unfavorable waiver of premium benefits experience in the group life product line and higher average claim size in the accidental death and dismemberment product line. The benefit ratio was lower in the first nine months of 2026 compared to the same period of 2025 due to lower claim incidence in the group life and accidental death and dismemberment product lines, partially offset by less favorable waiver of premium benefits experience in the group life product line.

Commissions and the deferral of acquisition costs were higher in the third quarter and first nine months of 2026 compared to the same periods of 2025 due to sales. The amortization of deferred acquisition costs was higher in the third quarter and first nine months of 2026 compared to the same periods of 2025 due to growth in the level of the deferred asset and the composition of lapses across cohorts. The other expense ratio in the third quarter and first nine months of 2026 was generally consistent compared to the same periods of 2025.

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 in the third quarter and first nine months of 2026 compared to the same periods of 2025 due to prior period sales in the voluntary benefits and dental and vision product lines, partially offset by lower persistency across all product lines. Also impacting the first nine months of 2026 is the impact of ceding a portion of the individual disability product line as a part of the 2025 Fortitude Re reinsurance transaction. Net investment income was higher in the third quarter and first nine months of 2026 compared to the same periods of 2025 due to an increase in yield on invested assets and higher miscellaneous income, partially offset by a decrease in the level of invested assets.

Other income for the first nine months of 2025 primarily includes a gain on the recapture of a previously ceded block of business in the individual disability product line that occurred in the first quarter of 2025. Other income also includes the amortization of the deferred gain related to the 2025 Fortitude Re reinsurance transaction that began in the third quarter of 2025.

The benefit ratio was higher in the third quarter and first nine months of 2026 compared to the same periods of 2025 due primarily to less favorable reserve assumption updates and refinements in the third quarter of 2026. Also impacting the comparison of the first nine months of 2026 compared to the same period of 2025 was 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 third quarter and first nine months of 2026 compared to the same periods of 2025 due primarily to sales. The amortization of deferred acquisition costs was higher in the third quarter of 2026 compared to the same period of 2025 due primarily to growth in the level of the deferred asset. The amortization of deferred acquisition costs was generally consistent in the first nine months of 2026 compared to the same period of 2025. The other expense ratio was lower in the third quarter and first nine months of 2026 compared to the same periods of 2025 due to our focus on expense management and operating efficiencies.

Sales

Group sales decreased during the third quarter of 2026 compared to the same period of 2025 due to lower sales to new customers in the large case market, which we define as employee groups with more than 2,000 employees, partially offset by higher sales to existing customers in the large case market. Group sales increased during the first nine months of 2026 compared to the same period of 2025 due primarily to higher sales to new customers in the core market and 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 nine months of 2026 was approximately 63 percent core market and 37 percent large case market.

Supplemental and voluntary sales decreased during the third quarter of 2026 compared to the same period of 2025 due primarily to lower sales for the individual disability and dental and vision product lines, partially offset by higher sales for the voluntary benefits product line. Supplemental and voluntary sales increased during the first nine months of 2026 compared to the same period of 2025 due to higher sales 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 Unum US segment adjusted operating income to be slightly lower in 2026 compared to 2025 due primarily to the change in reserve assumption updates. We also expect 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 elevated group disability claim experience to continue for the remainder of 2026, including pressure 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 claim experience in our supplemental and voluntary product line to be slightly elevated in 2026 compared to 2025 due primarily to the change in reserve assumption updates. 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.