Unum Group (UNM)
SIC breadcrumb: Finance, Insurance, And Real Estate > Insurance Carriers > SIC 6321 Accident & Health Insurance
SEC company page: https://www.sec.gov/edgar/browse/?CIK=5513. Latest filing source: 0000005513-26-000008.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 13,075,500,000 USD verified
- Net income
- 738,500,000 USD verified
- Assets
- 63,519,400,000 USD verified
- Free cash flow
- 555,400,000 USD computed
- Net margin
- 5.65% computed
- Revenue YoY
- +1.46% computed
- ROE
- 6.64% computed
Peer & cluster context
Peer percentile fingerprint
Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 63 Insurance Carriers, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 13,075,500,000 | USD | 2025 | 2026-02-17 |
| Net income | 738,500,000 | USD | 2025 | 2026-02-17 |
| Assets | 63,519,400,000 | USD | 2025 | 2026-02-17 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000005513.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 11,046,500,000 | 11,286,800,000 | 11,598,500,000 | 11,998,900,000 | 13,162,100,000 | 12,007,800,000 | 11,984,100,000 | 12,385,900,000 | 12,887,300,000 | 13,075,500,000 |
| Net income | 931,400,000 | 994,200,000 | 523,400,000 | 1,100,300,000 | 793,000,000 | 981,000,000 | 1,407,200,000 | 1,283,800,000 | 1,779,100,000 | 738,500,000 |
| Diluted EPS | 3.95 | 4.37 | 2.38 | 5.24 | 3.89 | 4.79 | 6.96 | 6.50 | 9.46 | 4.27 |
| Operating cash flow | 1,121,600,000 | 1,164,100,000 | 1,536,500,000 | 1,606,600,000 | 469,300,000 | 1,387,500,000 | 1,418,700,000 | 1,202,800,000 | 1,513,200,000 | 687,700,000 |
| Capital expenditures | 85,000,000 | 105,300,000 | 144,100,000 | 150,900,000 | 119,100,000 | 110,300,000 | 102,200,000 | 134,800,000 | 125,700,000 | 132,300,000 |
| Dividends paid | 182,600,000 | 196,000,000 | 215,600,000 | 229,200,000 | 231,900,000 | 239,400,000 | 254,200,000 | 277,100,000 | 296,500,000 | 306,200,000 |
| Share buybacks | 405,200,000 | 401,800,000 | 356,200,000 | 400,300,000 | 0.00 | 50,000,000 | 200,100,000 | 250,100,000 | 972,900,000 | 1,010,300,000 |
| Assets | 61,941,500,000 | 64,013,100,000 | 61,875,600,000 | 67,013,400,000 | 70,625,800,000 | 70,115,600,000 | 61,148,500,000 | 63,255,200,000 | 61,959,300,000 | 63,519,400,000 |
| Liabilities | 52,973,500,000 | 54,438,200,000 | 53,253,800,000 | 57,048,400,000 | 59,754,800,000 | 58,699,200,000 | 52,413,500,000 | 53,603,800,000 | 50,998,200,000 | 52,400,300,000 |
| Stockholders' equity | 8,968,000,000 | 9,574,900,000 | 8,621,800,000 | 9,965,000,000 | 10,871,000,000 | 6,033,900,000 | 8,735,000,000 | 9,651,400,000 | 10,961,100,000 | 11,119,100,000 |
| Free cash flow | 1,036,600,000 | 1,058,800,000 | 1,392,400,000 | 1,455,700,000 | 350,200,000 | 1,277,200,000 | 1,316,500,000 | 1,068,000,000 | 1,387,500,000 | 555,400,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 8.43% | 8.81% | 4.51% | 9.17% | 6.02% | 8.17% | 11.74% | 10.37% | 13.81% | 5.65% |
| Return on equity | 10.39% | 10.38% | 6.07% | 11.04% | 7.29% | 16.26% | 16.11% | 13.30% | 16.23% | 6.64% |
| Return on assets | 1.50% | 1.55% | 0.85% | 1.64% | 1.12% | 1.40% | 2.30% | 2.03% | 2.87% | 1.16% |
| Liabilities / equity | 5.91 | 5.69 | 6.18 | 5.72 | 5.50 | 9.73 | 6.00 | 5.55 | 4.65 | 4.71 |
Industry Peer Context
Net margin peer context
ROE peer context
ROA peer context
Financial Bridges
Free cash flow = operating cash flow - capital expenditures
Figure provenance: SEC companyfacts FY 2025. Operating cash flow: accession 0000005513-26-000008; concept NetCashProvidedByUsedInOperatingActivities; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities | Capital expenditures: accession 0000005513-26-000008; concept PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | Free cash flow: accession 0000005513-26-000008; concept NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: PaymentsOfDividends. Source concepts: us-gaap:PaymentsOfDividends.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: PaymentsForRepurchaseOfCommonStock. Source concepts: us-gaap:PaymentsForRepurchaseOfCommonStock.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: Liabilities. Source concepts: us-gaap:Liabilities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000005513-26-000008; filed 2026-02-17. Concept: NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
As-reported value updates
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000005513.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q3 | 2022-09-30 | 2.04 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 1.80 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 1.98 | reported discrete quarter | ||
| 2023-Q3 | 2023-09-30 | 3,092,500,000 | 202,000,000 | 1.02 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 3,145,100,000 | 330,600,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 3,200,300,000 | 395,200,000 | 2.04 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 3,233,400,000 | 389,500,000 | 2.05 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 3,217,000,000 | 645,700,000 | 3.46 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 3,236,600,000 | 348,700,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 3,091,600,000 | 189,100,000 | 1.06 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 3,361,400,000 | 335,600,000 | 1.92 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 3,378,400,000 | 39,700,000 | 0.23 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 3,244,100,000 | 174,100,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 3,355,200,000 | 232,000,000 | 1.41 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 3,370,000,000 | 256,900,000 | 1.61 | reported discrete quarter |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0000005513-26-000075; filed 2026-07-29. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0000005513-26-000075; filed 2026-07-29. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0000005513-26-000075; filed 2026-07-29. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read UNM's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read UNM's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0000005513-26-000075.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
TABLE OF CONTENTS
| Page | |
|---|---|
| Executive Summary | 90 |
| Reconciliation of Non-GAAP and Other Financial Measures | 94 |
| Critical Accounting Estimates | 96 |
| Accounting Developments | 96 |
| Consolidated Operating Results | 97 |
| Segment Results | 99 |
| Unum US Segment | 99 |
| Unum International Segment | 106 |
| Colonial Life Segment | 110 |
| Closed Block Segment | 112 |
| Corporate Segment | 114 |
| Investments | 114 |
| Liquidity and Capital Resources | 120 |
89
Table of Contents
Executive Summary
Unum Group, a Delaware general business corporation, and its insurance and non-insurance subsidiaries, which collectively with Unum Group we refer to as the Company, operate in the United States, the United Kingdom, Poland, and, to a limited extent, in certain other countries. The principal operating subsidiaries in the United States are Unum Life Insurance Company of America (Unum America), Provident Life and Accident Insurance Company (Provident), The Paul Revere Life Insurance Company, Colonial Life & Accident Insurance Company (Colonial Life & Accident), Unum Insurance Company, Starmount Life Insurance Company, in the United Kingdom, Unum Limited, and in Poland, Unum Zycie TUiR S.A. (Unum Poland). We are a leading provider of financial protection benefits in the United States and the United Kingdom. Our products include disability, life, accident, critical illness, dental and vision, and other related services. We market our products primarily through the workplace.
We have three principal operating segments: Unum US, Unum International, and Colonial Life. Our other operating segments are the Closed Block and Corporate segments. These segments are discussed more fully under "Segment Results" included herein in this Item 2.
The benefits we provide help the working world thrive throughout life's moments and protect people from the financial hardship of illness, injury, or loss of life. As a leading provider of employee benefits, we offer a broad portfolio of products and services through the workplace that provide support when it is needed most.
Specifically, we offer disability, life and voluntary products, on both individual and group bases, as well as provide certain fee-based services. These products and services, which can be sold stand-alone or combined with other coverages, help employers of all sizes attract and retain the talented and capable workforce they need to succeed while protecting the incomes and livelihood of their employees. We believe employer-sponsored benefits are the most effective way to provide workers with access to information and options to protect their financial stability. Working people and their families, particularly those at lower and middle incomes, are perhaps the most vulnerable in today's economy yet are often overlooked by many providers of financial products and services. For many of these workers and families, employer-sponsored benefits are the primary defense against the potentially catastrophic financial impact of death, illness, or injury.
We have established a corporate culture consistent with the social value of our products and services. We see important links between the obligations we have to all of our stakeholders, and we place a strong emphasis on operating with integrity and contributing to positive change in our communities. Accordingly, we are committed not only to meeting the needs of our customers who depend on us, but also to being accountable for our actions through sound and consistent business practices, a strong internal compliance program, a comprehensive risk management strategy, and an engaged employee workforce.
This discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto in Part I, Item 1 contained in this Form 10-Q and with the "Cautionary Statement Regarding Forward-Looking Statements" included below the Table of Contents, as well as the discussion, analysis, and consolidated financial statements and notes thereto in Part I, Items 1 and 1A, and Part II, Items 7, 7A, and 8 of our annual report on Form 10-K for the year ended December 31, 2025.
Certain prior period financial information has been adjusted to conform to current year presentation. See "Reconciliation of Non-GAAP and Other Financial Measures" contained herein in this Item 2 for more information regarding these adjustments.
Operating Performance and Capital Management
For the second quarter of 2026, we reported net income of $256.9 million, or $1.61 per diluted common share, compared to net income of $335.6 million, or $1.92 per diluted common share, in the second quarter of 2025. For the first six months of 2026, we reported net income of $488.9 million, or $3.01 per diluted common share, compared to net income of $524.7 million, or $2.97 per diluted common share in the same period of 2025.
Included in our results for the second quarter of 2026 are:
•A net investment loss of $5.2 million before tax;
•Closed Block segment before-tax adjusted operating loss of $75.4 million; and,
•A strategic actions impact of $30.7 million before tax.
The tax benefit on the items above was $22.2 million.
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Table of Contents
Included in our results for the first six months of 2026 are:
•A net investment loss of $10.2 million before tax;
•Closed Block segment before-tax adjusted operating loss of $220.7 million; and,
•A strategic actions impact of $30.7 million before tax.
The tax benefit on the items above was $52.0 million.
Included in our results for the second quarter of 2025 are the following reconciling items:
•A net investment loss of $17.7 million before tax; and,
•Closed Block segment before-tax adjusted operating loss of $10.8 million.
The tax benefit on the items above was $3.9 million.
Included in our results for the first six months of 2025 are:
•A net investment loss of $224.5 million before tax; and,
•Closed Block segment before-tax adjusted operating loss of $2.8 million.
The tax benefit on the items above was $43.0 million.
Excluding these items, after-tax adjusted operating income for the second quarter of 2026 was $346.0 million, or $2.16 per diluted common share compared to $360.2 million, or $2.06 per diluted common share, for the same period of 2025. After-tax adjusted operating income was $698.5 million, or $4.31 per diluted common share, in the first six months of 2026, compared to $709.0 million, or $4.01 per diluted common share, in the first six months of 2025. See "Reconciliation of Non-GAAP and Other Financial Measures" contained herein in this Item 2 for further discussion and a reconciliation of these items.
Unum US reported segment adjusted operating income of $329.6 million and $667.5 million in the second quarter and first six months of 2026, respectively, compared to $318.2 million and $647.3 million in the same periods of 2025, due primarily to higher premium income. Also impacting the comparison of the first six months of 2026, compared to the same period of 2025, was higher net investment income. The benefit ratio for our Unum US segment was 61.1 percent and 60.3 percent in the second quarter and first six months of 2026, respectively, compared to 60.7 percent and 60.2 percent in the same periods of 2025. Unum US sales increased 7.4 percent and 14.3 percent in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025.
Unum International reported segment adjusted operating income of $24.3 million and $55.2 million in the second quarter and first six months of 2026, respectively, compared to $41.6 million and $80.3 million in the same periods of 2025. Our Unum UK line of business reported segment adjusted operating income of £15.3 million and £35.7 million in the second quarter and first six months of 2026, respectively, compared to £29.4 million and £58.9 million in the same periods of 2025, primarily due to benefits experience. The benefit ratio for our Unum UK line of business was 82.2 percent and 77.6 percent in the second quarter and first six months of 2026, respectively, compared to 75.0 percent and 71.1 percent in the same periods of 2025. Unum International sales, as measured in U.S. dollars, decreased 19.4 percent and 7.3 percent in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025. Unum UK sales, as measured in local currency, decreased 14.9 percent and 4.2 percent in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025.
Colonial Life reported segment adjusted operating income of $131.4 million and $259.2 million in the second quarter and first six months of 2026, respectively, compared to $117.4 million and $233.1 million in the same periods of 2025, primarily due to benefits experience, higher net investment income and higher premium income. The benefit ratio for Colonial Life was 46.7 percent and 46.3 percent in the second quarter and first six months of 2026, respectively, compared to 48.3 percent and 48.0 percent in the same periods of 2025. Colonial Life sales increased 6.0 percent and 3.7 percent in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025.
Closed Block reported segment adjusted operating loss of $75.4 million and $220.7 million in the second quarter and first six months of 2026, respectively, compared to $10.8 million and $2.8 million in the same periods of 2025. The net premium ratio for long-term care increased to 97.8 percent at June 30, 2026 from 94.9 percent at June 30, 2025.
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A rising interest rate environment could positively impact our yields on new investments, but could also increase unrealized losses in our current holdings. Alternatively, a declining interest rate environment could negatively impact our yields on new investments, but could also reduce unrealized losses in our current holdings. As of June 30, 2026, we do not hold any securities with a decline in fair value below amortized cost which we intend to sell nor any securities for which it is more likely than not that we will be required to sell before recovery in amortized cost for which an impairment loss was not recorded. The net unrealized loss on our fixed maturity securities was $2.1 billion at June 30, 2026, compared to $1.7 billion at December 31, 2025, with the increase due primarily to an increase in U.S. Treasury rates. The earned book yield on our investment portfolio was 4.23 percent for the first six months of 2026 compared to a yield of 4.35 percent for the full year ended December 31, 2025.
Additionally, a rising interest rate environment could result in reserve decreases while a declining interest rate environment could result in reserve increases, specific to our liability for future policy benefits, as the reserve discount rate assumptions used in the calculation of our liability are updated at each reporting date using a yield that is reflective of an upper-medium grade fixed income instrument, which is generally equivalent to a single-A interest rate matched to the duration of certain of our insurance liabilities. The change in discount rate assumptions on the liability for future policy benefits, net of reinsurance, due primarily to the increase in U.S. Treasury rates during the first six months of 2026, resulted in a decrease to the liability for future policy benefits, net of reinsurance, of approximately $0.3 billion.
We believe our capital and financial positions are strong. At June 30, 2026, the risk-based capital (RBC) ratio for our traditional U.S. insurance subsidiaries, calculated on a weighted average basis using the NAIC Company Action Level formula, was approximately 480 percent, which is above our long-term expectation. We repurchased 7.9 million
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A (excerpt)
Latest 10-K Item 7 source: 0000005513-26-000008. The complete FY 2025 MD&A is published at /company/UNM/mda/fy2025/.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The discussion and analysis presented in this section should be read in conjunction with the "Cautionary Statement Regarding Forward-Looking Statements" included below the Table of Contents, "Risk Factors" included herein Item 1A, and the Consolidated Financial Statements and notes thereto included in Item 8.
TABLE OF CONTENTS
| Page | |||
|---|---|---|---|
| Executive Summary | 38 | ||
| Reconciliation of Non-GAAP and Other Financial Measures | 42 | ||
| Critical Accounting Estimates | 45 | ||
| Consolidated Operating Results | 54 | ||
| Segment Results | 56 | ||
| Unum US Segment | 57 | ||
| Unum International Segment | 66 | ||
| Colonial Life Segment | 72 | ||
| Closed Block Segment | 75 | ||
| Corporate Segment | 79 | ||
| Investments | 80 | ||
| Liquidity and Capital Resources | 86 |
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Table of Contents
Executive Summary
2025 Operating Performance and Capital Management
For 2025, we reported net income of $738.5 million, or $4.27 per diluted common share, compared to net income of $1,779.1 million, or $9.46 per diluted common share, in 2024.
Included in our results for 2025 are:
•A net investment loss of $106.6 million before tax and $83.5 million after tax, or $0.49 per diluted common share;
•Amortization of the cost of reinsurance of $116.7 million before tax and $92.2 million after tax, or $0.53 per diluted common share;
•Amortization of the deferred gain on reinsurance of $9.0 million before tax and $7.1 after tax, or $0.04 per diluted common share;
•Non-contemporaneous reinsurance of $29.6 million before tax and $23.3 million after tax, or $0.14 per diluted common share;
•A net reserve increase related to assumption updates of $478.5 million before tax and $377.8 million after tax, or $2.18 per diluted common share;
•A settlement loss on the U.S. pension plan annuity purchase of $103.8 million before tax and $82.0 million after tax, or $0.47 per diluted common share; and
•An accelerated charitable contribution of $20.0 million before tax and $15.8 million after tax, or $0.09 per diluted common share.
Included in our results for 2024 are:
•A net investment loss of $34.6 million before tax and $27.0 million after tax, or $0.14 per diluted common share;
•Amortization of the cost of reinsurance of $41.4 million before tax and $32.7 million after tax, or $0.17 per diluted common share;
•Non-contemporaneous reinsurance of $25.1 million before tax and $19.9 million after tax, or $0.11 per diluted common share;
•A net reserve decrease related to assumption updates of $357.4 million before tax and $282.6 million after tax, or $1.50 per diluted common share; and
•A loss resulting from a legal settlement of $15.3 million before tax and $12.1 million after tax, or $0.06 per diluted common share.
Excluding these items, after-tax adjusted operating income for 2025 was $1,406.0 million, or $8.13 per diluted common share compared to $1,588.2 million, or $8.44 per diluted common share for 2024. See "Closed Block Long-Term Care and Unum US Individual Disability Reinsurance Transaction", "Settlement Loss on the U.S. Pension Plan Annuity Purchase", "Accelerated Charitable Contribution", "Loss on Legal Settlement" and "Reconciliation of Non-GAAP and Other Financial Measures" contained herein in this Item 7 and Notes 3, 11, 14 and 15 contained herein Item 8 for a reconciliation of these items.
Our Unum US segment reported income before income tax and net investment gains and losses of $1,427.6 million in 2025 compared to $1,582.8 million in 2024, which include the reserve assumption updates that occurred during the third quarters of 2025 and 2024. Also included in our Unum US segment results for 2025, are the amortization of the deferred gain on reinsurance and the impact of non-contemporaneous reinsurance both of which resulted from the Closed Block long-term care and Unum US individual disability reinsurance transaction (Fortitude Re reinsurance transaction). Excluding these items, our Unum US segment reported lower adjusted operating income of $1,271.9 million in 2025 compared to $1,439.2 million in 2024, primarily due to less favorable benefits experience, partially offset by higher premiums. The benefit ratio, excluding the reserve assumption updates and the impact of non-contemporaneous reinsurance, for our Unum US segment for 2025 was 60.2 percent, compared to 58.2 percent in 2024. Unum US sales decreased 0.6 percent in 2025 compared to 2024. See "Closed Block Long-Term Care and Unum US Individual Disability Reinsurance Transaction" contained herein for further discussion of the Fortitude Re reinsurance transaction.
Our Unum International segment reported income before income tax and net investment gains and losses of $157.7 million in 2025 compared to $150.3 million in 2024, which include the reserve assumption updates during the third quarters of 2025 and 2024. Excluding these items, our Unum International segment reported adjusted operating income of $152.3 million in 2025
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Table of Contents
compared to $157.8 million in 2024. As measured in local currency, our Unum UK line of business reported lower adjusted operating income, which excludes the reserve assumption updates, of £107.5 million in 2025 compared to £117.8 million in 2024, primarily due to unfavorable benefits experience in the group long-term disability product line, partially offset by higher premium income and higher net investment income. The benefit ratio for our Unum UK line of business, excluding the reserve assumption updates, was 73.5 percent in 2025 compared to 69.8 percent in 2024. Unum International sales, as measured in U.S. dollars, increased 5.5 percent in 2025 compared to 2024. Unum UK sales, as measured in local currency, decreased 3.1 percent in 2025 compared to 2024.
Our Colonial Life segment reported income before income tax and net investment gains and losses of $472.5 million in 2025 compared to $512.7 million in 2024, which include the reserve assumption updates during the third quarters of 2025 and 2024. Excluding these items, our Colonial Life segment reported adjusted operating income of $463.6 million in 2025 compared to $466.7 million in 2024, primarily due to less favorable benefits experience as well as higher operating expenses, partially offset by higher premium income. The benefit ratio, excluding the reserve assumption updates, for Colonial Life was 48.1 percent in 2025 compared to 47.7 percent in 2024. Colonial Life sales increased 5.3 percent in 2025 compared to 2024.
Our Closed Block segment reported a loss before income tax and net investment gains and losses of $722.3 million in 2025 compared to income before income tax and net investment gains and losses of $246.6 million in 2024, which includes the reserve assumption updates that occurred during the third quarters of 2025 and 2024, the amortization of the cost of reinsurance, and the impact of non-contemporaneous reinsurance. Excluding these items, our Closed Block segment reported lower adjusted operating income of $63.5 million in 2025 compared to $137.8 million in 2024, primarily due to lower net investment income driven by a decrease in the level of invested assets. The net premium ratio for long-term care increased to 97.5 percent at December 31, 2025 from 94.6 percent at December 31, 2024.
A rising interest rate environment could positively impact our yields on new investments, but could also increase unrealized losses in our current holdings. Alternatively, a declining interest rate environment could negatively impact our yields on new investments, but could also reduce unrealized losses in our current holdings. As of December 31, 2025, we do not hold any securities with a decline in fair value below amortized cost which we intend to sell nor any securities for which it is more likely than not that we will be required to sell before recovery in amortized cost for which an impairment loss was not recorded. The net unrealized loss on our fixed maturity securities was $1.7 billion and $2.6 billion at December 31, 2025 and 2024, respectively, with the decrease due primarily to a decrease in U.S. Treasury rates. The earned book yield on our investment portfolio decreased to 4.35 percent for 2025 compared to a yield of 4.44 percent for 2024.
Additionally, a rising interest rate environment could result in reserve decreases while a declining interest rate environment could result in reserve increases, specific to our liability for future policy benefits, as the reserve discount rate assumptions used in the calculation of our liability are updated at each reporting date using a yield that is reflective of an upper-medium grade fixed income instrument, which is generally equivalent to a single-A interest rate matched to the duration of certain of our insurance liabilities. The change in discount rate assumptions on the liability for future policy benefits, net of reinsurance, due primarily to the decrease in U.S Treasury rates during 2025, resulted in an increase to the liability for future policy benefits, net of reinsurance, of approximately $0.3 billion.
We believe our capital and financial positions are strong. At December 31, 2025, the RBC ratio for our traditional U.S. insurance subsidiaries, calculated on a weighted average basis using the NAIC Company Action Level formula, was approximately 440 percent, which is in line with our expectations. We repurchased 13.6 million shares of Unum Group common stock under our share repurchase program, at a cost of $1,011.7 million, which includes commissions and excise tax. Our weighted average common shares outstanding, assuming dilution, equaled 172.9 million and 188.1 million for 2025 and 2024, respectively. As of December 31, 2025, Unum Group and our intermediate holding companies had available holding company liquidity of $2,344.1 million that was held primarily in bank deposits, commercial paper, money market funds, corporate bonds, municipal bonds, and asset backed securities.
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Closed Block Long-Term Care and Unum US Individual Disability Reinsurance Transaction
In February 2025, Unum Life Insurance Company of America (Unum America) entered into a master transaction agreement with Fortitude Reinsurance Company Ltd. (Fortitude Re) which resulted in the execution of a coinsurance agreement (reinsurance agreement) during July 2025. This reinsurance agreement reinsures a portion of our Closed Block long-term care business and a portion of our Unum US individual disability business on a coinsurance basis to Fortitude Re effective January 2025. The reinsurance agreement represents approximately 21 percent of total Closed Block long-term care future policy benefits and approximately 15 percent of Unum US individual disability future policy benefits as of December 31, 2024.
Upon closing the transaction in July 2025, we transferred to Fortitude Re $953.5 million of cash as well as fixed maturity securities with a fair value totaling $3,230.1 million and accrued investment income of $47.1 million. After consideration of the final settlement, the final ceding commission related to this transaction was $442.3 million. Fortitude Re established and will maintain a collateralized trust account for the benefit of Unum America to secure its obligations under the reinsurance agreement.
As a result of this reinsurance agreement, we recognized the following:
•Net realized investment loss totaling $46.8 million during the year ended 2025.
•Reinsurance recoverable of $3,620.5 million comprised of ceded reserves of $3,315.2 million related to the Closed Block long-term care product line and $305.3 million related to the Unum US individual disability product line.
•Cost of reinsurance of $848.2 million related to the Closed Block long-term care product line and a deferred gain on reinsurance related to the Unum US individual disability product
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MD&A history
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