Q1 2026 Unum Group Earnings Call Transcript
Key Points
- Unum Group (UNM) reported a strong start to 2026 with after-tax adjusted operating earnings of $353 million and EPS of $2.14, up nearly 10% from the previous year.
- The US group business had a standout quarter with sales up 22% and persistency at 92%, driving premiums up approximately 5%.
- Colonial Life delivered a record earnings quarter, supported by premium growth, attractive returns, and strong relationships in the worksite market.
- Unum International saw strong performance in Poland, with exceptional growth offsetting some pressure in the UK.
- The company maintained a robust capital position with an RBC ratio of 460% and holding company liquidity of approximately $1.7 billion, supporting capital deployment plans including share repurchases and dividends.
- Unum International's earnings were below expectations, with the UK business experiencing a higher benefit ratio due to larger average claim sizes.
- The supplemental and voluntary lines saw a decrease in earnings, partly due to unfavorable underlying experience and the impact of last year's long-term care transaction.
- The group disability segment faced higher incidents in the short-term disability product line, particularly in newer paid family and medical leave (PFML) states.
- The closed block experienced GAAP accounting volatility due to employer decisions to cease coverage, impacting current period earnings.
- The alternative investment portfolio, supporting the closed block, yielded below the long-term expectation, reflecting seasonality in first-quarter marks.
Hello, everyone. Thank you for joining us, and welcome to Unum first-quarter 2026 earnings. After today's prepared remarks, we will host a question-and-answer session. (Operator Instructions) I will now hand the conference over to Matt Royal, Investor Relations. So Matt, please go ahead.
Thank you, and good morning to everyone. Welcome to Unum Group's first-quarter 2026 earnings call. Please note today's call may include forward-looking statements, and actual results 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 of factors that could cause actual results to differ from expected results.
Yesterday afternoon, Unum released our earnings results and financial supplement for the first quarter of 2026. Materials are also available on the Investors section of our website. Also, please note references made today to core operations sales and premium, including Unum
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