On this page of StockholderLetter.com we present the latest annual shareholder letter from Unum Group — ticker symbol UNM. Reading current and past UNM letters to shareholders can bring important insights into the investment thesis.
A Note About Non-GAAP Financial Measures
We present certain measures of our performance that are not calculated in accordance with generally accepted accounting principles in the
United States of America (GAAP). Non-GAAP nancial measures exclude or include amounts that are not normally excluded or included in the
most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP nancial measures should not be viewed as
substitutes for the most directly comparable nancial measures calculated in accordance with GAAP. This Annual Report refers to the following
non-GAAP nancial measures, which we believe are better performance measures and better indicators of the revenue and pro tability and
underlying trends in our business:
After-tax adjusted operating income or loss, which we de ne as net income adjusted to exclude after-tax investment gains or losses,
the amortization of the cost of reinsurance, non-contemporaneous reinsurance, and reserve assumption updates, as well as certain
other items, as applicable, which are discussed under Executive Summary in Part II, Item 7 of our 2024 Annual Report on Form 10-K;
Adjusted operating return on equity, which is calculated using after-tax adjusted operating income or loss and excludes from equity
the unrealized gain or loss on securities, the e ect of change in discount rate assumptions on the liability for future policy bene ts,
and net gain or loss on derivatives;
Book value per share, which is calculated excluding accumulated other comprehensive income (loss) (AOCI); and
Leverage ratio, which excludes the unrealized gain or loss on securities, the e ect of change in discount rate assumptions on the
liability for future policy bene ts, and net gain or loss on derivatives.
Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on
derivatives. Investment gains or losses and unrealized gains or losses on securities depend on market conditions and do not necessarily relate
to decisions regarding the underlying business of our company. Leverage ratio and book value per common share excluding certain components
of AOCI, certain of which tend to uctuate depending on market conditions and general economic trends, are important measures.
We exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction
that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that was recognized
upon the exit of the business related to policies on claim status as well as the impact of non-contemporaneous reinsurance that resulted from
the adoption of Accounting Standards Update 2018-12. We believe that the exclusion of these items provides a better view of our results from
our ongoing businesses.
Cash ow assumptions used to calculate our liability for future policy bene ts are reviewed at least annually and updated, as needed, with
the resulting impact re ected in net income. While the e ects of these assumption updates are recorded in the reporting period in which the
review is completed, these updates re ect experience emergence and changes to expectations spanning multiple periods. We believe that by
excluding the impact of reserve assumption updates we are providing a more comparable and consistent view of our results.
We may at other times exclude certain other items from our discussion of nancial ratios and metrics in order to enhance the understanding
and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items
may not recur and does not replace the comparable GAAP nancial measures in the determination of overall pro tability.
Reconciliations of the most directly comparable GAAP nancial measures to the non-GAAP nancial measures are as follows:
2024
2023
2022
(in millions)
per share*
(in millions)
per share*
(in millions)
per share*
$ 1,779.1
$ 9.46
$ 1,283.8
$ 6.50
$ 1,407.2
$ 6.96
Net Investment Loss (net of tax bene t of $7.6; $7.8; $3.5)
(27.0)
(0.14)
(28.2)
(0.14)
(12.2)
(0.07)
Amortization of the Cost of Reinsurance
(net of tax bene t of $8.7; $9.3; $10.6)
(32.7)
(0.17)
(34.8)
(0.18)
(39.7)
(0.20)
Non-Contemporaneous Reinsurance
(net of tax bene t of $5.2; $7.3; $7.2)
(19.9)
(0.11)
(27.5)
(0.14)
(27.2)
(0.13)
Reserve Assumption Updates (net of tax expense (bene t)
of $74.8; $(37.9); $51.2)
282.6
1.50
(139.3)
(0.70)
192.1
0.96
Loss on Legal Settlement (net of tax bene t of $3.2; $ ; $ )
(12.1)
(0.06)

$ 1,588.2
$ 8.44
$ 1,513.6
$ 7.66
$ 1,294.2
$ 6.40
Net Income
Excluding:
After-tax Adjusted Operating Income
*Assuming Dilution
2021
20201
(in millions)
per share*
(in millions)
per share*
$ 981.0
$ 4.79
$ 793.0
$ 3.89
53.4
0.26
1,028.8
5.05
7.2
0.03
(82.3)
(0.40)
60.6
0.29
946.5
4.65
Amortization of the Cost of Reinsurance (net of tax bene t of $14.7, $0.6)
(55.1)
(0.27)
(2.0)
(0.01)
Non-Contemporaneous Reinsurance (net of tax bene t of $7.0; $ )
(25.9)
(0.12)

(1,014.7)
(4.98)
(5.0)
(0.02)
(16.6)
(0.08)
Net Income
Excluding:
Net Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $14.2; $273.5)
Net Investment Gain (Loss), Other (net of tax expense (bene t) of $1.9; $(20.9))
Total Net Investment Gain
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Bene t Reserves (net of tax bene t of $ ; $269.8)
Transaction Costs (net of tax bene t of $1.2; $4.4)

36.5
0.18
(86.0)
(0.41)
(996.8)
(4.89)
185.9
0.91
(133.5)
(0.66)
Impairment Loss on Internal-Use Software (net of tax bene t of $2.5; $ )
(9.6)
(0.05)

Cost Related to Early Retirement of Debt (net of tax bene t of $14.1; $ )
(53.2)
(0.26)

Impairment Loss on ROU Asset (net of tax bene t of $2.9; $2.7)
(11.0)
(0.05)
(10.0)
(0.05)
Impact of U.K. Tax Rate Increase
(23.6)
(0.12)

(18.6)
(0.09)
$ 917.9
$ 4.48
$ 1,005.4
$ 4.93
Net Tax Bene ts of Reinsurance Transaction
Total Items Related to Closed Block Individual Disability Reinsurance Transaction
Reserve Assumption Updates (net of tax expense (bene t) of $49.1; $(35.5))
Costs Related to Organizational Design Update (net of tax bene t of $ ; $4.7)
After-tax Adjusted Operating Income
*Assuming Dilution
(1) Amounts presented are prior to the adoption of ASU No. 2018-12, Financial Services - Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)
20191
20181
20171
(in millions)
per share*
(in millions)
per share*
(in millions)
per share*
$ 1,100.3
$ 5.24
$ 523.4
$ 2.38
$ 994.2
$ 4.37
Net Investment Gain (Loss) (net of tax expense
(bene t) of $(4.5); $(11.0); $15.0)
(18.7)
(0.09)
(28.5)
(0.12)
25.3
0.11
Cost Related to Early Retirement of Debt
(net of tax bene t of $5.7, $ ; $ )
(21.6)
(0.11)

Long-term Care Reserve Increase
(net of tax bene t of $ ; $157.7; $ )

(593.1)
(2.70)

Loss from Guarantee Fund Assessment
(net of tax bene t of $ ; $ ; $7.2)

(13.4)
(0.06)
Unclaimed Death Bene ts Reserve Increase
(net of tax bene ts of $ ; $ ; $13.6)

(25.4)
(0.11)

$ 1,140.6

$ 5.44

$ 1,145.0

$ 5.20
31.5
$ 976.2
0.14
$ 4.29
Net Income
Excluding:
Net Tax Bene t from Impacts of TCJA
After-tax Adjusted Operating Income
*Assuming Dilution
(1) Amounts presented are prior to the adoption of ASU No. 2018-12, Financial Services - Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)
20161
Net Income
20151
(in millions)
per share*
(in millions)
per share*
$ 931.4
$ 3.95
$ 867.1
$ 3.50
15.8
0.07
(26.1)
(0.11)
$ 915.6
$ 3.88
$ 893.2
$ 3.61
Excluding:
Net Investment Gain (Loss)
(net of tax expense (bene t) of $8.4; $(17.7))
After-tax Adjusted Operating Income
*Assuming Dilution
(1) Amounts presented are prior to the adoption of ASU No. 2018-12, Financial Services - Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)
December 31, 2024
(in millions)
Debt
Including:
Lease Liability
Adjusted Debt and Lease Liability
Total Stockholders Equity
Excluding:
Net Unrealized Loss on Securities
E ect of Change in Discount Rate Assumptions on the Liability for Future Policy Bene ts
Net Loss on Derivatives
Equity, As Adjusted
Debt, As Adjusted and Lease Liability
Total Adjusted Capital
Leverage Ratio
$ 3,739.8
69.4
$ 3,809.2
$ 10,961.1
(2,755.2)
1,185.4
(270.7)
12,801.6
3,809.2
$ 16,610.8
22.9%
After-Tax Adjusted
Operating Income (Loss)
Average Allocated
Equity 1
(in millions)
(in millions)
Year Ended December 31, 2024
Unum US
Adjusted Operating
Return on Equity
$ 1,137.6
$ 4,523.2
25.2%
Unum International
120.9
776.8
15.6%
Colonial Life
368.2
1,869.2
19.7%
1,626.7
7,169.2
22.7%
98.6
5,324.1
(137.1)
53.8
$ 1,588.2
$ 12,547.1
Core Operating Segments
Closed Block
Corporate
Total
12.7%
(1) Excludes unrealized loss on securities, the e ect of change in discount rate assumptions on the liability for future policy bene ts, and net loss on derivatives and is calculated using the
stockholders equity balances presented below.
December 31
2024
2023
(in millions)
Total Stockholders Equity
$ 10,961.1
$ 9,651.4
(2,755.2)
(1,919.1)
1,185.4
(648.4)
Excluding:
Net Unrealized Loss on Securities
E ect of Change in Discount Rate Assumptions on the Liability for Future Policy Bene ts
Net Loss on Derivatives
Total Adjusted Stockholders Equity
(270.7)
(73.7)
$ 12,801.6
$ 12,292.6
Year Ended December 31, 2024
(in millions)
Average Adjusted Stockholders Equity
$ 12,547.1
Year Ended December 31, 2024
(in millions)
Total Stockholders Equity (Book Value)
Excluding:
Net Unrealized Loss on Securities
E ect of Change in Discount Rate Assumptions on the Liability for Future Policy Bene ts
Net Loss on Derivatives
Subtotal
Excluding:
Foreign Currency Translation Adjustment
Subtotal
Excluding:
Unrecognized Pension and Postretirement Bene t Costs
Total Stockholders Equity, Excluding Accumulated Other
Comprehensive Income (Loss)
per share
Year Ended December 31, 2023
(in millions)
per share
$ 10,961.1
$ 61.38
$ 9,651.4
$ 49.91
(2,755.2)
(15.43)
(1,919.1)
(9.92)
1,185.4
(270.7)
6.64
(1.51)
(648.4)
(73.7)
(3.35)
(0.39)
12,801.6
71.68
12,292.6
63.57
(343.0)
(1.93)
(321.1)
(1.66)
13,144.6
73.61
12,613.7
65.23
(340.2)
(1.90)
(345.7)
(1.79)
$ 13,484.8
$ 75.51
$ 12,959.4
$ 67.02
•
4/10/2025 Letter Continued (Full PDF)
•
4/13/2023 UNM Stockholder Letter
•
4/11/2024 UNM Stockholder Letter
•
More "Life & Health Insurance" Category Stockholder Letters
•
UNM Benford's Law Stock Score = 99
UNM Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2024

A Note About Non-GAAP Financial Measures
We present certain measures of our performance that are not calculated in accordance with generally accepted accounting principles in the
United States of America (GAAP). Non-GAAP    nancial measures exclude or include amounts that are not normally excluded or included in the
most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP    nancial measures should not be viewed as
substitutes for the most directly comparable    nancial measures calculated in accordance with GAAP. This Annual Report refers to the following
non-GAAP    nancial measures, which we believe are better performance measures and better indicators of the revenue and pro   tability and
underlying trends in our business:
    After-tax adjusted operating income or loss, which we de   ne as net income adjusted to exclude after-tax investment gains or losses,
the amortization of the cost of reinsurance, non-contemporaneous reinsurance, and reserve assumption updates, as well as certain
other items, as applicable, which are discussed under    Executive Summary    in Part II, Item 7 of our 2024 Annual Report on Form 10-K;
    Adjusted operating return on equity, which is calculated using after-tax adjusted operating income or loss and excludes from equity
the unrealized gain or loss on securities, the e ect of change in discount rate assumptions on the liability for future policy bene   ts,
and net gain or loss on derivatives;
    Book value per share, which is calculated excluding accumulated other comprehensive income (loss) (AOCI); and
    Leverage ratio, which excludes the unrealized gain or loss on securities, the e ect of change in discount rate assumptions on the
liability for future policy bene   ts, and net gain or loss on derivatives.
Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on
derivatives. Investment gains or losses and unrealized gains or losses on securities depend on market conditions and do not necessarily relate
to decisions regarding the underlying business of our company. Leverage ratio and book value per common share excluding certain components
of AOCI, certain of which tend to uctuate depending on market conditions and general economic trends, are important measures.
We exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction
that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that was recognized
upon the exit of the business related to policies on claim status as well as the impact of non-contemporaneous reinsurance that resulted from
the adoption of Accounting Standards Update 2018-12. We believe that the exclusion of these items provides a better view of our results from
our ongoing businesses.
Cash ow assumptions used to calculate our liability for future policy bene   ts are reviewed at least annually and updated, as needed, with
the resulting impact re ected in net income. While the e ects of these assumption updates are recorded in the reporting period in which the
review is completed, these updates re ect experience emergence and changes to expectations spanning multiple periods. We believe that by
excluding the impact of reserve assumption updates we are providing a more comparable and consistent view of our results.
We may at other times exclude certain other items from our discussion of    nancial ratios and metrics in order to enhance the understanding
and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items
may not recur and does not replace the comparable GAAP    nancial measures in the determination of overall pro   tability.

Reconciliations of the most directly comparable GAAP    nancial measures to the non-GAAP    nancial measures are as follows:
2024
2023
2022
(in millions)
per share*
(in millions)
per share*
(in millions)
per share*
$ 1,779.1
$ 9.46
$ 1,283.8
$ 6.50
$ 1,407.2
$ 6.96
Net Investment Loss (net of tax bene   t of $7.6; $7.8; $3.5)
(27.0)
(0.14)
(28.2)
(0.14)
(12.2)
(0.07)
Amortization of the Cost of Reinsurance
(net of tax bene   t of $8.7; $9.3; $10.6)
(32.7)
(0.17)
(34.8)
(0.18)
(39.7)
(0.20)
Non-Contemporaneous Reinsurance
(net of tax bene   t of $5.2; $7.3; $7.2)
(19.9)
(0.11)
(27.5)
(0.14)
(27.2)
(0.13)
Reserve Assumption Updates (net of tax expense (bene   t)
of $74.8; $(37.9); $51.2)
282.6
1.50
(139.3)
(0.70)
192.1
0.96
Loss on Legal Settlement (net of tax bene   t of $3.2; $   ; $   )
(12.1)
(0.06)




$ 1,588.2
$ 8.44
$ 1,513.6
$ 7.66
$ 1,294.2
$ 6.40
Net Income
Excluding:
After-tax Adjusted Operating Income
*Assuming Dilution
2021
20201
(in millions)
per share*
(in millions)
per share*
$ 981.0
$ 4.79
$ 793.0
$ 3.89
53.4
0.26
1,028.8
5.05
7.2
0.03
(82.3)
(0.40)
60.6
0.29
946.5
4.65
Amortization of the Cost of Reinsurance (net of tax bene   t of $14.7, $0.6)
(55.1)
(0.27)
(2.0)
(0.01)
Non-Contemporaneous Reinsurance (net of tax bene   t of $7.0; $   )
(25.9)
(0.12)




(1,014.7)
(4.98)
(5.0)
(0.02)
(16.6)
(0.08)
Net Income
Excluding:
Net Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $14.2; $273.5)
Net Investment Gain (Loss), Other (net of tax expense (bene   t) of $1.9; $(20.9))
Total Net Investment Gain
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Bene   t Reserves (net of tax bene   t of $   ; $269.8)
Transaction Costs (net of tax bene   t of $1.2; $4.4)


36.5
0.18
(86.0)
(0.41)
(996.8)
(4.89)
185.9
0.91
(133.5)
(0.66)
Impairment Loss on Internal-Use Software (net of tax bene   t of $2.5; $   )
(9.6)
(0.05)


Cost Related to Early Retirement of Debt (net of tax bene   t of $14.1; $   )
(53.2)
(0.26)


Impairment Loss on ROU Asset (net of tax bene   t of $2.9; $2.7)
(11.0)
(0.05)
(10.0)
(0.05)
Impact of U.K. Tax Rate Increase
(23.6)
(0.12)




(18.6)
(0.09)
$ 917.9
$ 4.48
$ 1,005.4
$ 4.93
Net Tax Bene   ts of Reinsurance Transaction
Total Items Related to Closed Block Individual Disability Reinsurance Transaction
Reserve Assumption Updates (net of tax expense (bene   t) of $49.1; $(35.5))
Costs Related to Organizational Design Update (net of tax bene   t of $   ; $4.7)
After-tax Adjusted Operating Income
*Assuming Dilution
(1) Amounts presented are prior to the adoption of ASU No. 2018-12, Financial Services - Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)

20191
20181
20171
(in millions)
per share*
(in millions)
per share*
(in millions)
per share*
$ 1,100.3
$ 5.24
$ 523.4
$ 2.38
$ 994.2
$ 4.37
Net Investment Gain (Loss) (net of tax expense
(bene   t) of $(4.5); $(11.0); $15.0)
(18.7)
(0.09)
(28.5)
(0.12)
25.3
0.11
Cost Related to Early Retirement of Debt
(net of tax bene   t of $5.7, $   ; $   )
(21.6)
(0.11)




Long-term Care Reserve Increase
(net of tax bene   t of $   ; $157.7; $   )


(593.1)
(2.70)


Loss from Guarantee Fund Assessment
(net of tax bene   t of $   ; $   ; $7.2)




(13.4)
(0.06)
Unclaimed Death Bene   ts Reserve Increase
(net of tax bene   ts of $   ; $   ; $13.6)




(25.4)
(0.11)

$ 1,140.6

$ 5.44

$ 1,145.0

$ 5.20
31.5
$ 976.2
0.14
$ 4.29
Net Income
Excluding:
Net Tax Bene   t from Impacts of TCJA
After-tax Adjusted Operating Income
*Assuming Dilution
(1) Amounts presented are prior to the adoption of ASU No. 2018-12, Financial Services - Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)
20161
Net Income
20151
(in millions)
per share*
(in millions)
per share*
$ 931.4
$ 3.95
$ 867.1
$ 3.50
15.8
0.07
(26.1)
(0.11)
$ 915.6
$ 3.88
$ 893.2
$ 3.61
Excluding:
Net Investment Gain (Loss)
(net of tax expense (bene   t) of $8.4; $(17.7))
After-tax Adjusted Operating Income
*Assuming Dilution
(1) Amounts presented are prior to the adoption of ASU No. 2018-12, Financial Services - Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)
December 31, 2024
(in millions)
Debt
Including:
Lease Liability
Adjusted Debt and Lease Liability
Total Stockholders    Equity
Excluding:
Net Unrealized Loss on Securities
E ect of Change in Discount Rate Assumptions on the Liability for Future Policy Bene   ts
Net Loss on Derivatives
Equity, As Adjusted
Debt, As Adjusted and Lease Liability
Total Adjusted Capital
Leverage Ratio
$ 3,739.8
69.4
$ 3,809.2
$ 10,961.1
(2,755.2)
1,185.4
(270.7)
12,801.6
3,809.2
$ 16,610.8
22.9%

After-Tax Adjusted
Operating Income (Loss)
Average Allocated
Equity 1
(in millions)
(in millions)
Year Ended December 31, 2024
Unum US
Adjusted Operating
Return on Equity
$ 1,137.6
$ 4,523.2
25.2%
Unum International
120.9
776.8
15.6%
Colonial Life
368.2
1,869.2
19.7%
1,626.7
7,169.2
22.7%
98.6
5,324.1
(137.1)
53.8
$ 1,588.2
$ 12,547.1
Core Operating Segments
Closed Block
Corporate
Total
12.7%
(1) Excludes unrealized loss on securities, the e ect of change in discount rate assumptions on the liability for future policy bene   ts, and net loss on derivatives and is calculated using the
stockholders    equity balances presented below.
December 31
2024
2023
(in millions)
Total Stockholders    Equity
$ 10,961.1
$ 9,651.4
(2,755.2)
(1,919.1)
1,185.4
(648.4)
Excluding:
Net Unrealized Loss on Securities
E ect of Change in Discount Rate Assumptions on the Liability for Future Policy Bene   ts
Net Loss on Derivatives
Total Adjusted Stockholders    Equity
(270.7)
(73.7)
$ 12,801.6
$ 12,292.6
Year Ended December 31, 2024
(in millions)
Average Adjusted Stockholders    Equity
$ 12,547.1
Year Ended December 31, 2024
(in millions)
Total Stockholders    Equity (Book Value)
Excluding:
Net Unrealized Loss on Securities
E ect of Change in Discount Rate Assumptions on the Liability for Future Policy Bene   ts
Net Loss on Derivatives
Subtotal
Excluding:
Foreign Currency Translation Adjustment
Subtotal
Excluding:
Unrecognized Pension and Postretirement Bene   t Costs
Total Stockholders    Equity, Excluding Accumulated Other
Comprehensive Income (Loss)
per share
Year Ended December 31, 2023
(in millions)
per share
$ 10,961.1
$ 61.38
$ 9,651.4
$ 49.91
(2,755.2)
(15.43)
(1,919.1)
(9.92)
1,185.4
(270.7)
6.64
(1.51)
(648.4)
(73.7)
(3.35)
(0.39)
12,801.6
71.68
12,292.6
63.57
(343.0)
(1.93)
(321.1)
(1.66)
13,144.6
73.61
12,613.7
65.23
(340.2)
(1.90)
(345.7)
(1.79)
$ 13,484.8
$ 75.51
$ 12,959.4
$ 67.02



 4/10/2025 Letter Continued (Full PDF)
UNM Shareholder/Stockholder Letter Transcript:

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