Unum Group reported a net loss of $419.7 million ($2.65 per diluted common share) for the third quarter of 2026, together with after-tax adjusted operating income of $349.0 million ($2.20 per diluted common share). The release also covers segment results, management commentary on group disability claims and a revised definition of adjusted operating income.
Headline Results
Unum’s earnings release gives the prior-year comparison for adjusted operating income: after-tax adjusted operating income was $349.0 million ($2.20 per diluted common share) in the third quarter of 2026, compared to $479.4 million ($2.81 per diluted common share) in the third quarter of 2025.
On premiums, the release states: “Core operations top-line trends remained strong with premium growth of 4.7 percent on a constant currency basis.”
On book value, the release states: “Book value per common share of $68.90 grew 6.7 percent over the year-ago quarter; book value per common share excluding accumulated other comprehensive income (AOCI) of $76.73 fell 0.9 percent from the year-ago quarter.”
Investment Losses and the Fortitude Re Transaction
The release states: “Included in net loss for the third quarter of 2026 is a before-tax net investment loss on the Company’s investment portfolio of $853.0 million, primarily related to impairment losses recognized as a result of our intent to transfer assets supporting the 2026 Fortitude Re long-term care reinsurance transaction, and the Closed Block segment before-tax adjusted operating loss of $135.6 million.”
On reserves, the release states that the annual GAAP reserve assumption updates increased net income by $23.5 million, reflecting a decrease in reserves driven primarily by favorable trends in Unum US and Colonial Life.
Group Disability and the Unum US Segment
For the Unum US segment, the release reports a decrease of 35.2 percent in segment adjusted operating income to $315.3 million in the third quarter of 2026, compared to $486.8 million in the third quarter of 2025. Within that segment, the release states: “Premium income increased 5.2 percent to $1,846.6 million in the third quarter of 2026, compared to $1,755.4 million in the third quarter of 2025.”
Within the Unum US operating segment, the group disability line of business reported a 60.4 percent decrease in segment adjusted operating income to $94.8 million in the third quarter of 2026, compared to $239.3 million in the third quarter of 2025. For group disability, the benefit ratio for the third quarter of 2026 was 67.1 percent, compared to 47.8 percent in the third quarter of 2025, due to less favorable reserve assumption updates and refinements in the third quarter of 2026 compared to prior year, higher incidence, prior period pricing actions, and higher average claim size in the long-term disability product line.
Richard P. McKenney, president and chief executive officer, is quoted in the release:
“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…”
Results of the Other Segments
Among the other segments, Colonial Life reported segment adjusted operating income of $169.4 million in the third quarter of 2026, a 35.0 percent increase compared to $125.5 million in the third quarter of 2025. The Unum International segment reported segment adjusted operating income of $0.2 million in the third quarter of 2026, a decrease of 99.5 percent from $44.2 million in the third quarter of 2025.
The Corporate segment reported a segment adjusted operating loss of $45.7 million in the third quarter of 2026, a decrease compared to segment adjusted operating loss of $47.7 million in the third quarter of 2025. InsuraBeat has separate coverage of Hartford’s quarterly earnings.
Closed Block and Long-Term Care Reinsurance
The SEC exhibit reports that the Closed Block segment reported a segment adjusted operating loss of $135.6 million in the third quarter of 2026, a decrease compared to segment adjusted operating loss of $682.3 million in the third quarter of 2025, driven primarily by less unfavorable reserve assumption updates.
The release also states: “Results also reflect robust protections at our Fairwind entity, measured by statutory reserves and excess capital above our best estimate reserves, estimated to be approximately $2 billion following the anticipated closing of the 2026 Fortitude Re reinsurance transaction.” On rate actions, it says “we continued risk management actions including approximately 25 percent achievement of our current premium rate approval program.” InsuraBeat has separate coverage of Hartford’s employee benefits acquisition.
Capital Return, Balance Sheet and Outlook
On capital return, the release says: “Capital return continued at a consistent pace, with approximately $200 million of shares repurchased and $80.1 million of common stock dividends, bringing year-to-date capital return to $1,038.5 million.”
On outlook, Unum now expects full-year 2026 after-tax adjusted operating income per share of $8.30 to $8.50, which includes approximately $0.33 from the notable item. InsuraBeat has separate coverage of a court ruling on an ERISA disability claim.
Revised Definition of Adjusted Operating Income
The release describes the change in its reporting: “Beginning with the third quarter, we have revised our definition of after-tax adjusted operating income based on discussions with the staff of the Securities and Exchange Commission regarding our use of non-GAAP financial measures during an ongoing comment letter process.” Elsewhere, the non-GAAP section of the release states: “We no longer exclude reserve assumption updates from our adjusted operating results, and prior period financial information has been adjusted to conform to this updated presentation.”
