Unum Group reported net income of $335.6 million, or $1.92 per diluted common share, for the second quarter of 2025, a decrease from $389.5 million, or $2.05 per diluted common share, in the second quarter of 2024. After-tax adjusted operating income also declined to $361.1 million, or $2.07 per diluted common share, compared to $411.4 million, or $2.16 per diluted common share, in the prior year's quarter. CEO Richard P. McKenney acknowledged that earnings results did not meet expectations.
The Unum US segment's adjusted operating income decreased 11.0 percent to $318.2 million, with Group Disability adjusted operating income falling 18.5 percent due to lower recoveries and higher average claims size. Group Life and Accidental Death and Dismemberment (AD&D) also saw a 21.2 percent decrease in adjusted operating income. Most notably, the Closed Block segment reported a sharp decline in adjusted operating income to $3.9 million, down from $51.6 million in the second quarter of 2024, driven by lower claimant mortality and higher average new claim size.
Despite these challenges, premium income increased across most core segments, with Unum US premium income up 3.9 percent to $1,798.6 million and Unum International premium income rising 18.5 percent to $271.1 million. Management reiterated confidence in the company's resilient business model and strong capital position, emphasizing continued execution on growth strategy and capital deployment, including substantial returns to shareholders through dividends and share repurchases.
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