Unum Group Reports Third Quarter 2026 Results
Unum Group (UNM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 1 Fountain Square Chattanooga, TN 37402 www.unum.com FOR IMMEDIATE RELEASE Contacts MEDIA Emily Downing-Baer edowning@unum.com INVESTORS Matt Royal investorrelations@unum.com Unum Group Reports Third Quarter 2026 Results • Net loss of $419.7 million ($2.65 per dilute
How this was made
The 30-second read
Why it matters
The earnings miss may trigger short‑term sell pressure, but the company's strong balance sheet and capital returns provide a cushion.
Market read
The earnings release is a primary corporate event with material financial figures, likely influencing UNM stock and the broader insurance sector.
What to watch
Strong premium growth and solid capital returns could support a rebound once the loss items are resolved.
Unum Group Reports Third Quarter 2026 Results
Premium income grew and Colonial Life earnings improved, but GAAP results turned to a net loss on a $853.0 million net investment loss and adjusted operating income declined as group disability claims and reserve impacts pressured core earnings.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $2.55B | – | – |
| Premium income, three months ended September 30, 2026GAAP | $2.80B | – | – |
| Net investment income, three months ended September 30, 2026GAAP | $522.4M | – | – |
| Net investment gain (loss), three months ended September 30, 2026GAAP | −$853M | – | – |
| Other income, three months ended September 30, 2026GAAP | $77.4M | – | – |
| Policy benefits including remeasurement loss, three months ended September 30, 2026GAAP | $2.07B | – | – |
| Commissions, three months ended September 30, 2026GAAP | $365M | – | – |
| Interest and debt expense, three months ended September 30, 2026GAAP | $54M | – | – |
| Deferral of acquisition costs, three months ended September 30, 2026GAAP | −$188.3M | – | – |
| Amortization of deferred acquisition costs, three months ended September 30, 2026GAAP | $144.3M | – | – |
| Other expenses, three months ended September 30, 2026GAAP | $647.2M | – | – |
| Total benefits and expenses, three months ended September 30, 2026GAAP | $3.10B | – | – |
| Income (loss) before income tax, three months ended September 30, 2026GAAP | −$549.4M | – | – |
| Income tax expense (benefit), three months ended September 30, 2026GAAP | −$129.7M | – | – |
| Net income (loss), three months ended September 30, 2026GAAP | −$419.7M | – | – |
| Net income (loss) per common share, assuming dilution, three months ended September 30, 2026GAAP | $(2.65) | – | – |
| After-tax adjusted operating income, three months ended September 30, 2026non-GAAP | $349M | – | – |
| After-tax adjusted operating income per share, three months ended September 30, 2026non-GAAP | $2.20 | – | – |
| Weighted average common shares, assuming dilution, three months ended September 30, 2026GAAP | 158.6M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $9.27B | – | – |
| Premium income, nine months ended September 30, 2026GAAP | $8.41B | – | – |
| Net investment income, nine months ended September 30, 2026GAAP | $1.48B | – | – |
| Net investment gain (loss), nine months ended September 30, 2026GAAP | −$863.2M | – | – |
| Other income, nine months ended September 30, 2026GAAP | $239.2M | – | – |
| Total benefits and expenses, nine months ended September 30, 2026GAAP | $9.19B | – | – |
| Net income, nine months ended September 30, 2026GAAP | $69.2M | – | – |
| Net income per common share, assuming dilution, nine months ended September 30, 2026GAAP | $0.43 | – | – |
| After-tax adjusted operating income, nine months ended September 30, 2026non-GAAP | $1.05B | – | – |
| After-tax adjusted operating income per share, nine months ended September 30, 2026non-GAAP | $6.56 | – | – |
| Adjusted operating return on equity, three months ended September 30, 2026non-GAAP | 21.3 % | – | – |
| Effective income tax rate used to determine after-tax adjusted operating income, third quarter of 2026non-GAAP | 20.5 percent | – | – |
| Book value per common share, September 30, 2026GAAP | $68.90 | – | 6.7 percent |
| Book value per common share excluding AOCI, September 30, 2026non-GAAP | $76.73 | – | 0.9 percent decrease |
| Net premium ratio, September 30, 2026other | 98.1 percent | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Unum USPremium growth reflected sales and higher persistency in group disability, higher persistency and sales in group life and AD&D, and prior-period sales in voluntary benefits and dental and vision. | Premium income of $1,846.6 million | – | increased 5.2 percent |
| Unum InternationalUnum UK premium income increased due primarily to in-force block growth in group life and supplemental product lines. | Premium income of $291.6 million | – | increased 3.7 percent |
| Colonial LifePremium growth was due to prior period sales. | Premium income of $470.0 million | – | increased 3.0 percent |
| CorporateThe segment reported a segment adjusted operating loss of $45.7 million, driven by higher net investment income from a higher level of invested assets, partially offset by lower yield on invested assets. | – | – | |
| Closed BlockThe segment adjusted operating loss was $135.6 million, driven primarily by less unfavorable reserve assumption updates. | – | – |
full-year 2026 outlook
- NoteAfter-tax adjusted operating income per share of $8.30 to $8.50, which includes approximately $0.33 from the notable item.
Capital returns
- During the third quarter of 2026, the Company repurchased 2.1 million shares at a total cost of $202.0 million.
- $80.1 million of common stock dividends.
- Year-to-date capital return of $1,038.5 million.
What drove it
- Core operations premium income in constant currency was $2,608.2 million, compared to $2,490.6 million, and the release described premium growth of 4.7 percent on a constant currency basis.
- Unum US segment adjusted operating income decreased 35.2 percent to $315.3 million; group disability income fell 60.4 percent to $94.8 million amid higher incidence, prior-period pricing actions and higher average long-term disability claim size.
- Colonial Life segment adjusted operating income increased 35.0 percent to $169.4 million, supported by more favorable reserve assumption updates and favorable cancer, critical illness and life claims experience.
- The $853.0 million before-tax net investment loss was primarily related to impairment losses from the intent to transfer assets supporting the 2026 Fortitude Re long-term care reinsurance transaction.
- Annual GAAP reserve assumption updates increased net income by $23.5 million, while the core operating segments had an after-tax net reserve decrease of $53.2 million included in adjusted operating income.
Concerns
- Unum International segment adjusted operating income was $0.2 million, down 99.5 percent from $44.2 million, as Unum UK reported a £1.4 million segment adjusted operating loss and a 91.0 percent benefit ratio.
- Unum US group disability benefit ratio was 67.1 percent versus 47.8 percent, and group life and AD&D benefit ratio was 68.8 percent versus 65.4 percent.
- Unum International sales decreased 41.6 percent to $29.0 million, while Unum UK sales decreased 45.9 percent to £15.9 million.
- Unum US supplemental and voluntary persistency was lower across the voluntary benefits, individual disability, and dental and vision product lines.
- The company revised its definition of after-tax adjusted operating income, and prior-period financial information was adjusted to conform to the updated presentation.
What to watch
- Fourth-quarter core-segment performance underlying full-year 2026 after-tax adjusted operating income per share guidance of $8.30 to $8.50.
- Group disability incidence, claim size, benefit ratio and the effects of prior-period pricing actions.
- Unum UK disability incidence, reserve assumption updates, sales and persistency.
- The anticipated closing of the 2026 Fortitude Re long-term care reinsurance transaction and related asset-transfer impacts.
- Progress toward the current premium rate approval program, which was approximately 25 percent achieved.
Balance sheet and cash flow
- Holding company liquidity of $1,383.4 million at September 30, 2026.
- Weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies of approximately 485 percent at September 30, 2026.
- Total stockholders' equity of $10,761.6 million at September 30, 2026.
- Total stockholders' equity, excluding accumulated other comprehensive loss, of $11,985.6 million at September 30, 2026.
- Shares outstanding totaled 156.2 million at September 30, 2026.
- No operating cash flow, free cash flow, cash balance, or debt balance was reported in the filing text.
Analysis
Unum reported a third-quarter GAAP net loss of $419.7 million, or $2.65 per diluted common share, compared with net income of $39.7 million, or $0.23 per diluted common share, a year earlier. The principal reported factor was an $853.0 million before-tax net investment loss, primarily related to impairment losses associated with assets intended to support the 2026 Fortitude Re long-term care reinsurance transaction. After-tax adjusted operating income was $349.0 million, or $2.20 per diluted common share, versus $479.4 million, or $2.81 per diluted common share. The company also changed the definition of after-tax adjusted operating income and revised prior-period information to conform to the updated presentation.
Top-line premium trends remained positive. Premium income was $2,800.7 million versus $2,688.0 million, while core operations premium income in constant currency was $2,608.2 million compared with $2,490.6 million. Unum US premium income increased 5.2 percent to $1,846.6 million, and Colonial Life premium income increased 3.0 percent to $470.0 million. Unum International premium income increased 3.7 percent to $291.6 million, but sales declined 41.6 percent to $29.0 million. The release attributes Unum UK premium growth to in-force group life and supplemental block growth.
Profitability was uneven across the core businesses. Unum US segment adjusted operating income declined 35.2 percent to $315.3 million, led by a 60.4 percent reduction in group disability income to $94.8 million. Group disability's benefit ratio reached 67.1 percent versus 47.8 percent, with higher incidence, prior-period pricing actions and higher average long-term disability claim size among the cited factors. In contrast, Colonial Life segment adjusted operating income increased 35.0 percent to $169.4 million and its benefit ratio declined to 38.0 percent from 46.3 percent, reflecting more favorable reserve assumption updates and favorable claims experience. Unum International segment adjusted operating income declined to $0.2 million from $44.2 million.
Capital deployment continued through $202.0 million of share repurchases and $80.1 million of common stock dividends during the quarter, contributing to year-to-date capital return of $1,038.5 million. The company reported $1,383.4 million of available holding company liquidity and an approximately 485 percent weighted average risk-based capital ratio for its traditional U.S. insurance companies. Book value per common share was $68.90 versus $64.56, while book value per common share excluding AOCI was $76.73 versus $77.39.
For full-year 2026, Unum expects after-tax adjusted operating income per share of $8.30 to $8.50, including approximately $0.33 from the notable item. The outlook incorporates annual assumption review and refinements, results through the first three quarters, and fourth-quarter expectations for the core segments. The key operating focus is whether core premium growth, capital strength and Colonial Life performance can offset group disability claims pressure and weak Unum International earnings.
Management, verbatim
The third quarter reflected continued good premium growth and strong customer retention across our employee benefits portfolio. Our underlying earnings results did fall short of our expectations with very good performance in our voluntary benefits businesses being offset by elevated claim submissions in group disability.
Richard P. McKenney, president and chief executive officer
Our diversified business model and deep expertise give us confidence to address these trends for our franchise, which continues to see high returns. When combined with our strong capital position, consistent capital deployment, and management of our closed block, we will drive long-term growth and value for shareholders as we execute against our strategic priorities.
Richard P. McKenney, president and chief executive officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported in the filing text.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash balance was not reported.
- Debt balance was not reported.
- A total company sales metric was not reported.
- Prior-quarter comparisons for most reported income-statement metrics were not reported.
- Revenue, gross margin, operating expenses, and tax-rate guidance were not reported.
- Prior outlook was not provided, so no comparison to prior guidance is available.
- Corporate and Closed Block segment revenue was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Unum Group filed a Form 8‑K reporting its third‑quarter 2026 results, including a net loss and revised operating metrics.
Ticker impact
Unum Group reported a Q3 2026 net loss of $419.7M and adjusted operating income of $349.0M, a material earnings surprise.
likely downward pressure as investors digest the loss
Earnings miss on a large-cap insurer typically triggers sell‑offs, especially with a sizable net loss and no offsetting guidance.
Market effects
Insurance sector may see broader scrutiny as Unum's loss highlights disability claim pressures.
U.S. market sentiment could dip slightly in the insurance subsector.
Limited global impact; primarily U.S. insurers.
Counterpoint
If the loss is driven by one-time investment impairments, the core business may still be resilient.
Key entities
- companyUnum Group
U.S. insurer providing disability, life, and other employee benefits.
