Unum Group

Unum Group (NYSE: UNM) sells workplace disability, life, accident, critical illness, dental and vision insurance, together with employee-benefit services. Its main operating segments are Unum US, Unum International and Colonial Life. Closed Block holds long-term care and other products no longer actively marketed.

September-quarter results

Three months ended September 30. USD millions, except diluted earnings per share. Adjusted results for 2025 are restated to the current definition.

The adjusted measure excludes investment gains and losses, Closed Block earnings and selected tax items. Starting in Q3, it includes annual reserve assumption updates and refinements following discussions with SEC staff. Earlier figures were recast. The current 33-cent net benefit comprises a 42-cent annual-update benefit and a 9-cent refinement expense.

The original 2025 release reported adjusted EPS of $2.09 under a different definition. The current $2.20 should be compared with the recast $2.81. Removing the separately disclosed reserve effects from those rounded figures gives approximately $1.87 versus $2.06.

Claims and premiums

Unum US group disability premiums rose to $816.6 million from $785.2 million. Its benefit ratio excluding notable reserve items increased to 70.6% from 61.3%. The reported ratio, including reserve effects, was 67.1% versus 47.8%.

The company cited higher claim incidence, prior pricing actions, larger average long-term disability claims and less favorable reserve changes. Pressure was already visible in Q2, with a benefit ratio of 65.8% versus 62.2%.

Colonial Life premiums rose to $470 million from $456.5 million. Its benefit ratio excluding notable items improved to 47.0% from 48.2%. This business helped offset the disability weakness.

The annual forecast

July's full-year adjusted EPS forecast was $8.60 to $8.90, excluding annual reserve assumption updates. The November range is $8.30 to $8.50, including the net 33-cent notable reserve benefit under the new presentation.

Management says the new outlook incorporates the annual reserve review, refinements, first-three-quarter results and fourth-quarter expectations for the core segments. It has not presented a formal restatement of the July forecast under the new definition.

Pending Fortitude Re transaction

The planned long-term care reinsurance transaction was disclosed in July. Closing is expected in November 2026. It covers about 28% of Closed Block long-term care future policy benefits measured at March 31.

Quarterly investment losses included $833.5 million recognized because Unum intends to transfer assets supporting the transaction. The planned securities and cash transfer was estimated at $5.659 billion when disclosed, subject to closing adjustments.

The planned transaction is expected to use insurance assets and funding from several sources, including Fairwind excess capital, parent liquidity and external financing. It remained pending in the latest reporting. Closed Block losses remain in GAAP results even though the headline adjusted measure excludes that segment.

Financial position and capital return

At September 30, consolidated cash and bank deposits were $279.9 million and debt was $3.766 billion. Holding and intermediate companies had $1.383 billion of liquidity. That liquidity is a separate measure from consolidated cash.

The weighted-average risk-based capital ratio for traditional U.S. life insurance companies was approximately 485%. This is an insurance regulatory capital measure.

Quarterly repurchases totaled 2.1 million shares at a cost of $202 million, including commissions and excise tax. Year-to-date repurchase cost of $806.5 million and dividends of $232 million brought capital return to $1.039 billion.

The latest available cash-flow statement covers the six months ended June 30: operating cash flow was $844.3 million, versus $701.6 million a year earlier. September balances above come from the newer earnings supplement.

Next operating milestones

The next results can test whether disability benefit costs stabilize, whether Colonial Life maintains its better claims experience and whether the Fortitude transaction closes on the announced timetable.