Unum Group (UNM) investor relations material

Executive summary

• Q2 2026 delivered strong core operations with diversified employee benefits, robust sales, and persistency, but net income fell to $256.9 million ($1.61 per share) from $335.6 million due to investment losses and higher Closed Block segment losses.

• After-tax adjusted operating income was $346.0 million ($2.16 per share), up from $2.06 per share in Q2 2025, reflecting premium growth and healthy margins.

• Premium growth reached 5% underlying and 3.6% on a constant currency basis, with year-to-date sales up 14% and strong capital returns totaling $750 million.

• Continued investments in digital connectivity and leave management, with premium and fees tied to these capabilities up nearly 70% since year-end 2023.

• Strategic actions in Q2 included $31 million in costs, mainly from real estate and employee-related expenses, excluded from adjusted earnings.

Financial highlights

• Total revenue for Q2 2026 was $3.37 billion, up 0.3% year-over-year; premium income grew 2.5% in Q2 and 3.0% for the six months.

• After-tax adjusted operating income per share was $2.16, up 4.9% year-over-year; YTD EPS growth was 7.5%.

• Consolidated adjusted operating ROE was 15.9% for Q2 and 16% YTD; core segment ROE reached 21.4%.

• Net investment income declined 14.7% in Q2, mainly due to lower invested assets and inflation-linked bond income.

• Colonial Life achieved record adjusted operating income of $131.4 million, with a benefit ratio of 46.7%.

Outlook and guidance

• Reaffirmed full-year after-tax adjusted operating income per share guidance of $8.60–$8.90, representing 8–12% growth over 2025.

• Expect full-year core premium growth of 4%–7%, with growth rate to improve in H2 as prior transaction impacts fade.

• Management expects to close a long-term care reinsurance transaction in the second half of 2026, further improving risk profile.

• Effective tax rate expected to be ~22% for the remainder of 2026.