Overview of Unum Group’s Financial Performance

Unum Group, a leading provider of financial protection benefits in the United States and the United Kingdom, has reported its financial results for the first quarter of 2026. The company operates in three principal segments: Unum US, Unum International, and Colonial Life.

For the first quarter of 2026, Unum Group reported net income of $232.0 million, or $1.41 per diluted common share, compared to net income of $189.1 million, or $1.06 per diluted common share, in the first quarter of 2025. Excluding certain items, the company’s after-tax adjusted operating income was $352.5 million, or $2.14 per diluted common share, compared to $348.8 million, or $1.95 per diluted common share, in the same period of 2025.

Segment Performance

The Unum US segment reported segment adjusted operating income of $337.9 million in the first quarter of 2026, compared to $329.1 million in the same period of 2025. This increase was primarily due to favorable benefits experience and higher net investment income, partially offset by the gain on the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025.

The Unum International segment reported segment adjusted operating income of $30.9 million in the first quarter of 2026, compared to $38.7 million in the same period of 2025. This decrease was primarily due to unfavorable benefits experience in the Unum UK line of business.

The Colonial Life segment reported segment adjusted operating income of $127.8 million in the first quarter of 2026, compared to $115.7 million in the same period of 2025. This increase was primarily due to favorable benefits experience and higher net investment income.

The Closed Block segment reported a segment adjusted operating loss of $145.3 million in the first quarter of 2026, compared to $8.0 million of segment adjusted operating income in the same period of 2025. This decrease was primarily due to higher policy benefits, including a remeasurement loss, in the long-term care product line.

Investment Performance and Interest Rate Environment

Unum Group’s investment portfolio is well diversified and the company has established an investment strategy to provide adequate cash flows from operations. However, the company’s investment results can be impacted by changes in interest rates.

A rising interest rate environment could positively impact the company’s yields on new investments, but could also increase unrealized losses in its current holdings. Alternatively, a declining interest rate environment could negatively impact yields on new investments, but could also reduce unrealized losses in the company’s current holdings.

As of March 31, 2026, the net unrealized loss on Unum Group’s fixed maturity securities was $2.2 billion, compared to $1.7 billion at December 31, 2025, with the increase due primarily to an increase in U.S. Treasury rates and credit spreads. The company’s earned book yield on its investment portfolio was 4.29% for the first three months of 2026, compared to a yield of 4.35% for the full year of 2025.

Reinsurance Transaction

In July 2025, Unum Life Insurance Company of America (Unum America) entered into a reinsurance agreement with Fortitude Reinsurance Company Ltd. (Fortitude Re) to reinsure a portion of its Closed Block long-term care business and a portion of its Unum US individual disability business. As a result of this transaction, Unum Group recognized a net realized investment loss of $46.8 million during the year ended December 31, 2025, and a reinsurance recoverable of $3,620.5 million as of March 31, 2026.

Capital and Liquidity

Unum Group believes its capital and financial positions are strong. At March 31, 2026, the risk-based capital (RBC) ratio for the company’s traditional U.S. insurance subsidiaries was approximately 460%, which is in line with its expectations.

The company repurchased 5.4 million shares of Unum Group common stock under its share repurchase program during the first quarter of 2026 at a cost of $402.4 million, including commissions and excise tax. As of March 31, 2026, Unum Group and its intermediate holding companies had available holding company liquidity of $1,726.1 million.

Unum Group’s liquidity requirements are primarily met by cash flows provided from operations, principally in its insurance subsidiaries. The company has established an investment strategy that it believes will provide for adequate cash flows from operations to meet its funding requirements.

Outlook

Unum Group remains committed to its strategy of providing financial protection products at the workplace, which it believes puts the company in a strong position. The company expects earnings growth in its core operations in 2026, driven by premium growth in its key business segments.

The company will continue to monitor the interest rate environment and may utilize derivative financial instruments to manage interest rate risk. Unum Group will also continue to take appropriate pricing actions on new business and renewals that are reflective of the current environment.

Overall, Unum Group believes its diversified business, strong risk management, and effective deployment of capital will allow the company to meet its financial objectives and continue to serve its customers and shareholders.