Q3 2025 Unum Group Earnings Call Transcript
Key Points
- Unum Group (UNM) reported solid premium growth of 4% year-to-date, driven by strong persistency and sales growth.
- The company successfully closed a long-term care reinsurance transaction with Fortitude Re, ceding 20% of LTC reserves, showcasing its ability to execute in the market.
- Core business profitability trends exceeded expectations, with group disability and group life showing favorable earnings power.
- Unum Group (UNM) returned nearly $1 billion to shareholders through share repurchases and dividends in the first nine months of 2025.
- The investment portfolio performed well, maintaining a high credit quality and low exposure to below investment grade securities.
- Earnings per share of $2.09 fell below expectations due to volatility in the closed block.
- The closed block required an increase in reserves of $640.5 million, primarily due to long-term care adjustments.
- The removal of morbidity and mortality improvement assumptions added approximately $850 million to reserves, reflecting modeling uncertainty.
- The closed block's adjusted operating income decreased to $14.1 million from $34.2 million a year ago, impacted by lower alternative investment income.
- Persistency for total group was 89.8%, a decrease from 92.5% a year ago, though still above expectations.
Hello and thank you for standing by. My name is Bella, and I will be a conference operator today. At this time, I would like to welcome everyone to Union Group 33Q 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. We do request for today's session that you please limit to one question and one follow-up. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press 1 again.
I would now like to turn the conference over to Matt Royal, head of investor relations. You may begin.
Thank you, Bella, and good morning to everyone. Welcome to Union Group's 3rd quarter 2025 earnings call, which will include discussion of our annual reserve assumption review.
Please note that today's call may include forward-looking statements and actual results which are subject to risks and
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