UNM · Unum Group

Unum Group delivered a strong Q1 2026 with net income of $232.0 million, up from $189.1 million year-over-year, driven by favorable core operations despite a $116.5 million after-tax loss in the Closed Block segment and minor investment losses. Adjusted operating income rose slightly to $352.5 million, reflecting robust top-line growth of 14.4% in sales and 3.9% in premiums on a constant currency basis, with core operations margins at 21.7% adjusted operating return on equity. CEO Richard P. McKenney highlighted positive customer demand, strong sales increases, good retention, and an improving Closed Block risk profile from 2025 actions like employer discontinuations of long-term care plans. Segment performance varied: Unum US grew adjusted operating income 2.7% to $337.9 million, fueled by 20.8% sales growth to $335.1 million, 3.3% premium growth, and improved persistency, though group disability benefit ratio rose to 63.7%. Group life & AD&D saw 66.3% income growth with lower benefit ratio; supplemental/voluntary dipped 17.4% on reinsurance impacts. Unum International declined 20.2% to $30.9 million amid higher UK benefit ratios, while Colonial Life rose 10.5% to $127.8 million on favorable benefits experience. Corporate loss widened slightly, and Closed Block deteriorated sharply due to policy terminations and claims. Capital returns were aggressive with $402.4 million share repurchases (5.4 million shares) and $78.4 million dividends, supported by $1.7 billion holding company liquidity and 460% RBC ratio. Book value per share excluding AOCI grew 3.6% to $78.93, signaling balance sheet strength amid disciplined deployment.