Unum Group (NYSE: UNM) reported second-quarter after-tax adjusted operating earnings per share of $2.16, a 4.9% increase from the previous year. Year-to-date adjusted operating EPS rose 7.5%. The company maintains its full-year adjusted operating EPS outlook of $8.60 to $8.90, despite challenges in its paid family and medical leave (PFML) business in the U.S. and group income protection in the UK.
In the U.S., adjusted operating income was $329.6 million, up from $318.2 million last year. However, the group disability benefit ratio reached 65.8%, exceeding the company’s 62% to 64% expectation, driven by increased short-term disability claims, particularly in PFML. Colonial Life saw record quarterly adjusted operating income of $131.4 million, while Unum International’s adjusted operating income declined to $24.3 million amid pressures in the UK group income protection market.
Unum plans to reinsure $3.8 billion in long-term care statutory reserves from its Fairwind closed-block business, expected to close in Q4. The current holding-company liquidity is $1.5 billion, with traditional risk-based capital estimated at 480% at the quarter’s end. The company aims to return approximately $1.3 billion to shareholders in 2026.
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