Unum Group Q1 FY2026 earnings call

• Core operations had solid start to 2026 with strong execution, top and bottom line growth, greater capital deployment, and progress in close block management. • U.S. group business had standout quarter with sales up 22%, persistency 92%, premiums up ~5% specific to group lines, group life had record earnings. • Colonial Life had 20% sales growth, record earnings. • Unum International had mixed results with strong Poland growth offset by UK benefits pressure. • Discontinued new employee coverage on existing group cases led to 7% of group LTC cases closing, reducing exposure. • Invested in technology-enabled solutions to help win, retain, and grow business. • Named one of the world's most ethical companies for sixth straight year.

Core operations performed well with earned premium growth over 5% adjusting for transactions. After-tax adjusted operating earnings $353 million and EPS $2.14 up nearly 10% y-o-y. U.S. group business had sales up 22% and persistency 92%, premiums up ~5% specific to group lines. Group life had record earnings, group disability showed consistent strength. Colonial Life had 20% sales growth, record earnings. Unum International had mixed results with strong Poland growth offset by UK benefits pressure. Unum U.S. supplemental and voluntary lines had adjusted operating earnings $116.2 million in Q1, down from prior year. Closed block saw 7% of group LTC cases close, fair wind protection $2.2 billion remains robust.

• Outlook calls for 4% to 7% top line growth, 8% to 12% EPS growth, attractive returns on equity in core operations, and strong capital generation and deployment. • Repurchased ~$400 million of shares in first quarter, reduced public float by ~3%. • Plan to redeploy roughly $1.3 billion, which is what generated in a year. • Look to increase dividend rate in coming month. • Confident in 2026 outlook based on supportive environment, building sales pipelines, deepening digital connections, and focused execution.

• Unum International had benefits pressure in UK. • Group LTC business had 7% of cases close due to employers ceasing coverage, causing GAAP accounting volatility. • International business may have trends in UK group LTD that could persist if not anomalies. • Volatility in supplemental and voluntary persistency, especially member lapses.

Q: On paid family medical leave, color on what's seen in product line as moving into new states.

A: Rick and Chris discussed that PFML is an important part, new states come on, there's pent-up demand, managed like new line of business, one-year rate guarantee allows reprice, can give lift in sales.

Q: On long-term care enforced management actions, 7% of policies closed, details.

A: Steve said notified employer base of no new lives on existing cases, led to 7% of cases terminating, 30,000 lives ceased coverage, ongoing communications with customers, first quarter most acute impact but future terminations possible.

Q: On guidance over balance of year, comments on businesses.

A: Steve said feel comfortable in guidance range, group life result great, possibility of being favorable to 70%, international benefit ratio higher due to one-off average size of new disability claims, colonial had great quarter, variances within range.

Q: On voluntary business and states telling insurance companies to lower premiums, A: Tim said there have been states with loss ratio requirements, seeing additional instances of states inquiring about loss ratios.

Q: On group LTC actions, incentivizing customers to terminate cases, A: Steve said no incentive, unilateral decision by group HR director.

Q: On international business UK group LTD, frequency vs severity issue, A: Steve said was average size of long-term disability business in quarter, mix of claims drive higher expected size, view as first quarter volatility.

Q: On Group LTC terminations and statutory reserve impact, A: Steve said net statutory reserve release less than $100 million, not a big capital impact.

Q: On Unum U.S. expenses and operating leverage, A: Steve said expectation for 2026 is relatively flat with possible improvement as year progresses, driving productivity and investing back commercially.

Q: On traditional group persistency improvement, A: Chris said persistency strong due to investments in capabilities like HR Connect and total leave, consistent and transparent discussions around price.

Q: On supplemental and voluntary persistency, A: Chris and Tim said volatility in first quarter on member lapses, taking deeper look to bring back persistency.

Q: On corporate outlook for balance of year and corporate loss, A: Steve said mid-40s loss probably where it'll be.

Q: On paid family medical, sizing underwriting business and type of model, A: Chris said PFML is insured component with short-term and family member events, ties in with lead management, less than 10% of overall disability book.

Q: On group LTC lapses detail, A: Steve said 7% of cases terminated was broad-based, due to HR director's value view on benefit package.

Q: On tactical buybacks, A: Steve said consistent with capital generation and deployment plan, saw opportunity in market, opportunistic in share repurchase, plan to be dynamic.