Unum Group (UNM) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $39.7M ($0.23/diluted share), down from $645.7M ($3.46/share) in Q3 2024, mainly due to a significant after-tax net reserve increase from annual GAAP reserve assumption updates and reinsurance impacts.

• After-tax adjusted operating income was $357.1M ($2.09/share), compared to $398.0M ($2.13/share) in Q3 2024; core business margins and returns remained robust.

• Core businesses delivered consistent performance, with premium growth up 2.9%–4% year-to-date and strong capital generation.

• Strategic actions in the closed block, including a major LTC reinsurance transaction with Fortitude Re, increased reserves by $377.8M–$478.5M after-tax, but no additional capital contributions are expected.

• Nearly $1B returned to shareholders YTD through share repurchases and dividends; on track for $1.3B in 2025.

Financial highlights

• Total revenue for Q3 2025 was $3.38B, up 5% year-over-year; premium income grew 2.3%–2.9% in Q3 and 3.5% YTD.

• Adjusted after-tax operating income per share was $2.09, down from $2.13 year-over-year.

• Net investment income declined to $476.8M, mainly due to lower invested assets post-reinsurance transaction.

• Book value per share grew 8.8% to $64.56; excluding AOCI, it rose 4.4% to $77.39.

• Holding company liquidity at $2B and RBC ratio around 455%.

Outlook and guidance

• Management expects continued positive operating trends in core businesses for 2025, with premium growth and stable claim experience.

• Expect to end the year with RBC >425% and holding company liquidity above $2B.

• On track to deliver $1.3B in total capital return to shareholders in 2025.

• Premium growth in the 3%-6% range is expected to continue, supported by strong persistency and sales momentum.

• Lower alternative investment income and assumption review impacts reduced Q3 after-tax adjusted operating earnings by ~$0.10/share, with a similar effect expected in Q4.