Unum Group (UNM) investor relations material

Strategic priorities and growth outlook

• Focus remains on growth by protecting more people across the U.S., U.K., and Poland, aiming to increase the nearly 50 million lives currently covered.

• Emphasis on digital connectivity and employer engagement to drive growth and capitalize on investments made in recent years.

• Premium growth in the mid-single digits is targeted, with retention of current customers and persistency seen as key drivers.

• Investment in technology, such as HR Connect and Total Leave, enhances employer and employee experience and operational efficiency.

• Capital deployment priorities include organic growth, capability-driven M&A, and increasing returns to shareholders through dividends and share repurchases.

Business performance and market environment

• Group disability benefit ratios have normalized post-pandemic, with current ratios in the low 60% range and returns over 20%.

• Group life benefit ratios have stabilized at pre-pandemic levels, with no significant favorable mortality trends observed.

• Colonial Life is regaining momentum post-pandemic, with improved agent productivity and sales growth in the lower single digits.

• Supplemental and voluntary products continue to see growth opportunities due to rising employee needs and healthcare trends.

• The competitive environment remains rational, with a focus on comprehensive product suites and customer experience.

Risk management, capital, and asset strategy

• Long-term care experienced elevated claim incidents and higher claim severity in Q2, but these are expected to normalize, with ongoing actuarial review to conclude in Q3.

• Recent reinsurance transaction with Fortitude Re reduces long-term care risk, with ongoing efforts to further offload risk.

• Strong capital position with holding company cash expected between $2B and $2.5B by year-end and RBC ratio around 485%.

• Share repurchases are expected to reach the top end of the $500M–$1B range for the year, with a continued focus on returning capital to shareholders.

• Asset allocation strategy emphasizes credit, alternatives, and hedging to manage interest rate risk, with minimal sensitivity to short-term rate changes.