UNM Unum Group (UNM) Q2 FY26 earnings call
Unum Group delivered a solid Q2 FY26, showcasing strong underlying premium growth and robust sales in its core U.S. and Colonial Life segments, alongside favorable Group Life performance. However, results were tempered by elevated claims experience in newer Paid Family and Medical Leave (PFML) states within U.S. Group Disability and in the U.K. Group Income Protection business, which the company is actively addressing with pricing and underwriting actions. Management remains confident in its diversified model and reaffirmed its full-year EPS outlook, while continuing to manage Closed Block ris
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UNM operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | This call Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|
| Persistency US Group | 92%Leading the way our group -- our US group business had a standout quarter with sales up 22% and persistency is strong at 92%.Source: earnings call transcript | 91.5%Total US group persistency remained strong at 91.5%, up nearly 2 percentage points from the prior year.Source: earnings call transcript | -0.5 pt |
| Risk-based capital ratio | 460%with RBC at 460%, which is over 100 points above our target range and holding company liquidity is strong at approximately $1.7 billion.Source: earnings call transcript | 480%Holding company liquidity stood at $1.5 billion, and traditional RBC at 480%, both above our long-term targets and consistent with our expectations.Source: earnings call transcript | +20 pt |
| Benefit ratio Unum US Group Disability | 63.7%Group disability adjusted operating earnings of $106.6 million in the first quarter of 2026 reflect a benefit ratio of 63.7% compared to 61.8% in the year ago period and an improvement from 64.2% in the fourth quarter of last year.Source: earnings call transcript | 65.8%Group disability reported a second quarter benefit ratio of 65.8% compared to our 62% to 64% expectation.Source: earnings call transcript | +2.1 pt |
| Benefit ratio Unum International | 71%The International segment's benefit ratio was 71% compared to 66.5% in the year ago period driven by unfavorable experience in the UK business.Source: earnings call transcript | 78.4%Segment's benefit ratio was 78.4% compared to 72.4% in prior year quarter, driven primarily unfavorable experience in the UK Adjusted operating income for Unum UK business was GBP 15.3 million in the second quarter compared to GBP 29.4 million in the second quarter of 2025.Source: earnings call transcript | +7.4 pt |
| Benefit ratio Unum UK | 72.9%The results reflect underlying claims performance, including a benefit ratio of 72.9% compared to 76.1% a year ago.Source: earnings call transcript | 82.2%The UK benefit ratio was 82.2% compared to 75% a year ago.Source: earnings call transcript | +9.3 pt |
| Net premium ratio Closed Block Long-Term Care | 97.6%Combined with the underlying benefits experience, the NPR increased 10 basis points to 97.6% on a sequential basis.Source: earnings call transcript | 97.8%The net premium ratio increased 20 basis points sequentially to 97.8%, with most of the increase driven by group LTC case terminations.Source: earnings call transcript | +0.2 pt |
| Alternative investment portfolio annualized yield Closed Block | 6.7%Then lastly, for the closed block, our alternative investment portfolio, which mainly supports LTC and and an annualized yield of 6.7% in the quarter, below our long-term expectation of 8% to 10%.Source: earnings call transcript | 6.1%Lastly, the alternative investment portfolio that primarily supports LTC and generated an annualized yield of 6.1% in the quarter, below our long-term expectation of 8% to 10%.Source: earnings call transcript | -0.6 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.