Unum Group Reports $738.5 Million Net Income for Fiscal Year 2025

**Unum Group Reports Fiscal Year 2025 Results**

Unum Group (NYSE: UNM) reported net income of $738.5 million, or $4.27 per diluted common share, for the fiscal year ending December 31, 2025. This represents a significant decrease compared to the $1.78 billion, or $9.46 per diluted common share, reported in 2024. The company's financial performance was impacted by several key items, including a net investment loss of $83.5 million after tax, amortization of the cost of reinsurance of $92.2 million after tax, and a net reserve increase related to assumption updates of $377.8 million after tax. Additionally, a settlement loss on the U.S. pension plan annuity purchase of $82.0 million after tax and an accelerated charitable contribution of $15.8 million after tax also contributed to the year's results.

Excluding these specific items, Unum Group's after-tax adjusted operating income for 2025 was $1.41 billion, or $8.13 per diluted common share, compared to $1.59 billion, or $8.44 per diluted common share, in the previous year. The company's Unum US segment experienced a decrease in adjusted operating income, primarily due to less favorable benefits experience, partially offset by higher premiums. The Unum International segment also saw a decrease in adjusted operating income, mainly due to unfavorable benefits experience in the Unum UK business. Colonial Life's adjusted operating income decreased slightly due to less favorable benefits experience and higher operating expenses, while the Closed Block segment's adjusted operating income decreased due to lower net investment income.

Operationally, Unum US sales decreased by 0.6 percent, while Colonial Life sales increased by 5.3 percent. Unum International sales, measured in U.S. dollars, increased by 5.5 percent, although Unum UK sales, measured in local currency, decreased by 3.1 percent. The company continued to manage its capital effectively, repurchasing 13.6 million shares of its common stock at a cost of $1.01 billion, including commissions and excise tax. As of December 31, 2025, the company's traditional U.S. insurance subsidiaries maintained a weighted average RBC ratio of approximately 440 percent.

Looking ahead to 2026, Unum Group anticipates a return to earnings growth in its core operations, driven by strong premium growth. The company expects to continue investing in its operations and expanding into adjacent markets. While acknowledging potential volatility in investment income, Unum Group remains focused on disciplined pricing and reserving practices, as well as the use of derivative financial instruments to manage interest rate risk. The company's strategy remains centered on growing its core businesses, investing and transforming its operations and technology to anticipate and respond to the changing needs of its customers, expanding into new adjacent markets through meaningful partnerships and effective deployment of its capital across its portfolio.