Q1 2025 Unum Group Earnings Call Transcript
Key Points
- Unum Group (UNM) achieved a return on equity (ROE) of over 20% in the first quarter.
- Premium growth exceeded 4%, supported by strong sales in voluntary benefits.
- The company ended the quarter with record levels of holding company liquidity at $2.2 billion and a high RBC position of 460%.
- Unum Group (UNM) successfully executed long-term care reinsurance transactions, removing 20% of the risk from this block.
- The company repurchased approximately $200 million in shares during the first quarter, indicating strong capital deployment.
- Earnings per share fell short of expectations at $2.04 due to a higher level of disability claims.
- The Group Disability benefit ratio increased to 61.8%, higher than the previous year's 57.5%, driven by elevated incidents.
- Unum International experienced a large decline in sales, particularly impacted by a lack of large case sales.
- Persistency in some product lines was lower than last year's high point, aligning more with historical levels.
- The Closed Block segment saw lower earnings due to reduced income from alternative assets, yielding only 5.1% compared to the long-term expectation of 8.10%.
Thank you for standing by. My name is Kayla, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Unum Group first-quarter 2025 earnings call. (Operator Instructions)
I would now like to turn the call over to Matt Royal, Investor Relations. You may begin.
Great, Kayla. Thank you, and good morning. Yesterday afternoon, Unum released our first-quarter 2025 earnings press release and financial supplement. Those materials may be found on the Investors section of our website, along with a presentation of the most directly comparable GAAP measures and reconciliations of any non-GAAP financial measures included in today's presentation.
Please note that today's call may include forward-looking statements and actual results, which are subject to risks and uncertainties may differ materially, and we are not obligated to update any of these statements. Please refer to our earnings release and our periodic filings with the SEC for a description
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