Unum (UNM) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $39.7 million ($0.23 per diluted share), down from $645.7 million ($3.46 per share) in Q3 2024, mainly due to a significant after-tax net reserve increase from annual GAAP reserve assumption updates and reinsurance impacts.

• After-tax adjusted operating income for Q3 2025 was $357.1 million ($2.09 per share), compared to $398.0 million ($2.13 per share) in Q3 2024.

• Core businesses delivered consistent performance in 2025, with year-to-date premium growth of 4% and strong capital generation.

• Technology initiatives and high persistency rates are driving growth and retention across segments.

• Approximately $980 million was returned to shareholders year-to-date, including $250 million in share repurchases and $78.3 million in dividends during the quarter.

Financial highlights

• Total revenue for Q3 2025 was $3.38 billion, up 5% year-over-year; premium income rose to $2.69 billion from $2.63 billion.

• Adjusted after-tax operating income per share was $2.09, down from $2.13 year-over-year, mainly due to closed block volatility.

• Net investment income declined 9.7% in Q3 and 2.3% for the nine months, mainly due to lower invested assets post-reinsurance transaction.

• Book value per share grew 8.8% to $64.56; excluding AOCI, it rose 4.4% to $77.39.

• Nearly $1 billion returned to shareholders in nine months: $750 million in share repurchases, $230 million in dividends.

Outlook and guidance

• Confident in ending the year with RBC above 425% and holding company liquidity above $2 billion.

• On track to return approximately $1.3 billion to shareholders in 2025.

• Management expects continued positive operating trends in core businesses for 2025, with premium growth and stable claim experience.

• Group Disability benefit ratio expected to remain around 62% in Q4 and into 2026.

• Lower alternative investment income and assumption review reduced Q3 after-tax adjusted operating earnings by ~$0.10 per share, with a similar effect expected in Q4.