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- **Core growth momentum**: 4% premium growth in Unum US, 12% sales growth, and 89.8% persistency highlight strong execution.
- **Closed Block management**: $478 million reserve increase reflects strategic actions to derisk LTC, with no capital contributions needed.
- **Digital innovation**: HR Connect and Total Leave platforms drove 12% sales growth, reinforcing competitive advantage.
- **Capital discipline**: $1.3 billion capital return expected for 2025, with 455% RBC ratio and $2 billion liquidity buffer.
- **LTC reinsurance success**: Transaction reduced risk and added $101 million after-tax gain, positioning for future transactions.

**【CEO Summary Section】**
- **Core business growth**: Unum US premium grew 4% year-over-year, driven by 12% sales growth and 89.8% persistency. Group disability and life lines delivered ROE above 20%.
- **Closed Block management**: Third-quarter GAAP EPS of $2.09 was impacted by $0.10 from Closed Block reserve updates. LTC reinsurance transaction reduced risk and added $101.2 million in after-tax gains.
- **Strategic initiatives**: HR Connect and Total Leave platforms drove 12% sales growth, with digital engagement rates exceeding 80%.
- **Capital return**: $750 million in share buybacks and $230 million in dividends returned to shareholders year-to-date, with $1.3 billion total capital return expected for 2025.

**【CFO Financial Commentary】**
- **Core profitability**: Unum US adjusted operating income of $334.9 million (down 8% YoY) reflected $105.8 million group disability reserve release. Group disability benefit ratio improved to 61.3%.
- **Closed Block updates**: $478.5 million pre-tax reserve increase included $300 million for elevated LTC incidence, offset by $200 million mortality improvement removal. Future premium rate increases targeting $525 million in present value.
- **Capital strength**: $2 billion holding company liquidity and 455% RBC ratio, well above targets. No capital contributions needed for Closed Block.

**【Q&A Highlights】**
- **LTC strategy**: Reinsurance transaction reduced LTC risk, with no further capital contributions needed. $2 billion excess capital buffer maintained.
- **Group disability trends**: 62% benefit ratio sustained, with recoveries at historical highs. Pricing environment stable with 3-5% annual rate increases.
- **International growth**: Poland premium grew 19%, UK sales up 25%, and U.S. voluntary benefits expanded 10%.
- **Closed Block volatility**: NPR increase to 97.6% expected to stabilize quarterly earnings variability as cohorts mature under LDTI caps.

Unum Group (UNM) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

UNM

UNM fundamentals

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