Key Highlights

  • The net loss was USD 419.7 million, or USD 2.65 per diluted share, versus Net Income of USD 39.7 million.
  • After-tax adjusted Operating Income was USD 349.0 million, or USD 2.20 per share, versus USD 479.4 million.
  • Before-tax net Investment loss was USD 853.0 million, including USD 833.5 million tied to Fortitude Re transactions.
  • Year-to-date Capital return was USD 1,038.5 million, and Book Value per common share was USD 68.90 at quarter end.

Net Loss and Adjusted Operating Income

Unum Group (NYSE:UNM), the Chattanooga-based employee benefits insurer, reported a third-quarter 2026 net loss of USD 419.7 million, or USD 2.65 per diluted common share, compared with net income of USD 39.7 million, or USD 0.23 per share, in the third quarter of 2025. The loss includes a before-tax net investment loss of USD 853.0 million, primarily related to Impairment losses recognized as a result of the company intent to transfer Assets supporting the 2026 Fortitude Re long-term care Reinsurance transaction. It also includes a Closed Block segment before-tax adjusted operating loss of USD 135.6 million, and a tax benefit of USD 207.9 million on these items.

The results also include a net tax-only benefit of USD 12.0 million, reflecting the release of an unrecognized tax benefit Liability of USD 188.2 million, mostly offset by a deferred tax asset valuation allowance of USD 176.2 million. After-tax adjusted operating income was USD 349.0 million, or USD 2.20 per diluted common share, compared with USD 479.4 million, or USD 2.81. The company revised its definition of after-tax adjusted operating income beginning in the third quarter, following discussions with SEC staff, so that it includes the annual reserve assumption updates and refinements.

Within adjusted operating income, an after-tax net reserve decrease in the core operating segments was USD 53.2 million, or USD 0.33 per share, compared with a decrease of USD 128.1 million, or USD 0.75, in the third quarter of 2025.

Analyst estimates were EPS of USD 2.16 against reported EPS of USD 2.20, and Revenue of USD 2.91 billion against reported revenue of USD 2.55 billion.

Segment Results

Unum US segment adjusted operating income decreased 35.2% to USD 315.3 million from USD 486.8 million. Premium income increased 5.2% to USD 1,846.6 million, net investment income increased 8.6% to USD 164.9 million, and sales decreased 8.5% to USD 163.9 million.

Group disability segment adjusted operating income decreased 60.4% to USD 94.8 million from USD 239.3 million, with premium income up 4.0% to USD 816.6 million. The benefit ratio was 67.1%, compared with 47.8%, which the company attributes to less favorable reserve assumption updates and refinements, higher incidence, prior period pricing actions and higher average claim size in long-term disability. Group life and accidental death and dismemberment adjusted operating income decreased 14.3% to USD 78.2 million, with premium income up 6.6% to USD 551.4 million and a benefit ratio of 68.8% versus 65.4%.

Capital and Management Comments

The company repurchased USD 200 million of shares and paid USD 80.1 million of common stock dividends, bringing year-to-date capital return to USD 1,038.5 million. Holding Company Liquidity was USD 1.4 billion, and the weighted average risk-based capital ratio was 485%. Book value per common share was USD 68.90, up 6.7% from the year-ago quarter, and book value per common share excluding accumulated other comprehensive income was USD 76.73, down 0.9%.

President and Chief Executive Officer Richard P. McKenney said underlying Earnings fell short of expectations, with performance in voluntary benefits businesses offset by elevated claim submissions in group disability. He said the company intends to address these trends through its diversified Business model and capital position.

Items to Follow

Items to follow are the closing of the Fortitude Re reinsurance transaction, group disability claim submissions and benefit ratios, the Closed Block segment and capital return.