Description

Unum Group’s LTC Strategy: Legacy Risk Reduction & Capital Deployment Under the Microscope!

Unum Group’s 2025 financial results reflected a year marked by both operational progress and some challenges in benefit experience, particularly within its group disability segment. For the full year, adjusted earnings per share (EPS) came in at $8.13, below both the prior year and company expectations, primarily due to higher-than-anticipated benefit costs. Despite this, the company’s core operations demonstrated resilience with a return on equity (ROE) near 20%, supported by disciplined underwriting, sustained premium growth, and strong persistency rates. Premium growth remained steady with core operations increasing around 4.5% on a constant currency basis, including 3.1% growth in Colonial Life and a robust 10% growth internationally. This growth was underpinned by ongoing demand from employer clients appreciating Unum’s integrated benefit offerings. Digital initiatives played a significant role, with over one-third of the core premium base associated with enhanced digital service capabilities aimed at simplifying client administration and improving engagement.