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Sep 30, 2025
Unum Q3 2025 Earnings Report
Unum Group reported its third quarter 2025 earnings, with net income significantly lower than the prior year, while adjusted operating income also saw a decrease.
Key Takeaways
Unum Group reported a substantial decrease in net income for the third quarter of 2025, primarily due to a significant after-tax net reserve increase related to assumption updates. Despite this, core operations showed strength with premium growth and a robust adjusted operating return on equity. The company maintained a strong balance sheet and continued to return capital to shareholders.
Net income for Q3 2025 was $39.7 million ($0.23 per diluted common share), a significant decrease from $645.7 million in Q3 2024.
After-tax adjusted operating income was $357.1 million ($2.09 per diluted common share), down from $398.0 million in Q3 2024.
The company completed its annual GAAP reserve assumption updates, resulting in an after-tax net reserve increase of $377.8 million.
Unum maintained a strong balance sheet with holding company liquidity of $2.0 billion and a weighted average risk-based capital ratio of approximately 455 percent.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Unum Group expects lower alternative investment income and ongoing impacts from the annual assumption review to continue affecting after-tax adjusted operating earnings in the fourth quarter, similar to the third quarter's impact.
Positive Outlook
- Core businesses are performing in line with expectations.
- Strategic actions and experience updates in long-term care are being managed.
- Fairwind protections remain robust at around $2.0 billion post-assumption update.
- Ability to manage updates and take strategic actions without capital contributions due to Fairwind protections.
- Protection level is well-positioned against fewer sensitivities following the removal of morbidity and mortality improvement.
Challenges Ahead
- Lower alternative investment income is expected to reduce after-tax adjusted operating earnings.
- Ongoing impacts from the annual assumption review are expected to reduce after-tax adjusted operating earnings.
- Expected comparable effect of approximately $0.10 per share reduction in after-tax adjusted operating earnings in the fourth quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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