Unum Group reported net income of $524.7 million for the first half of 2025, a decrease from $784.7 million in the same period of 2024. This decline was primarily driven by $224.5 million in net investment losses, including a $160.9 million impairment loss related to the Fortitude Re reinsurance transaction and $42.6 million in realized losses from asset sales.
Despite the investment losses, premium income increased by 4.1% to $5,450.9 million in the first half of 2025, and net investment income rose by 1.4% to $1,073.9 million. The Unum US segment saw premium growth of 4.1% but a 12.8% decline in adjusted operating income due to unfavorable benefits experience and higher commissions.
A significant development was the culmination of the reinsurance agreement with Fortitude Reinsurance Company Ltd. in July 2025. This transaction ceded approximately 21.0% of the Closed Block long-term care business and 15.0% of the Unum US individual disability future policy benefits as of December 31, 2024.
The deal involved the transfer of $953.5 million in cash, including a $461.7 million ceding commission, and fixed maturity securities with a fair value of $3,224.5 million. This strategic move aims to enhance financial flexibility and reduce exposure to long-duration liabilities, allowing Unum to focus on its core segments.
The company maintained a robust capital position with a risk-based capital (RBC) ratio of approximately 485.0% for its U.S. insurance subsidiaries as of June 30, 2025. Unum also repurchased 7.10 million common shares for $505.9 million in the first half of 2025, demonstrating its commitment to shareholder returns.
Looking ahead, management anticipates continued positive operating trends in its core businesses for the remainder of 2025, with expected premium growth and stable claim experience. However, volatility in net investment income is projected, particularly from private equity partnerships.
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