Unum Group reported a strong start to 2026 with solid top and bottom-line performance driven by positive customer demand, increased sales, and good retention rates. The company highlighted robust capital return and a strong balance sheet, while also noting continued improvements in the risk profile of its Closed Block segment.
After-tax adjusted operating income was $352.5 million ($2.14 per diluted common share), an increase from $348.8 million ($1.95 per diluted common share) in Q1 2025.
positiveTotal Revenue increased to $3,355.2 million in Q1 2026, up from $3,091.6 million in Q1 2025.
positiveRobust capital return with approximately $400 million of shares repurchased and $78.4 million of common stock dividends.
positiveStrong balance sheet with holding company liquidity of $1.7 billion and a weighted average risk-based capital ratio of approximately 460 percent.
positiveBook value per common share grew 6.2 percent over the year-ago quarter to $67.76.
positiveThe Closed Block segment reported an after-tax adjusted operating loss of $145.3 million in Q1 2026, a significant decrease from an operating income of $8.0 million in Q1 2025, driven by policy terminations and claim incidence in the long-term care product line.
negativeUnum International segment adjusted operating income decreased by 20.2% to $30.9 million in Q1 2026 from $38.7 million in Q1 2025, primarily due to higher claim incidence and average claim size in the UK long-term disability product line.
attentionGroup disability line of business within Unum US reported a 10.6% decrease in segment adjusted operating income to $106.6 million in Q1 2026, compared to $119.2 million in Q1 2025, due to higher incidence in the short-term disability product line.
attentionThe effective income tax rate for after-tax adjusted operating income increased to 22.2% in Q1 2026 from 21.2% in Q1 2025, driven by lower excess tax benefit on equity compensation.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Unum US | N/A | — | — | — |
Unum International | N/A | — | — | — |
Colonial Life | N/A | — | — | — |
Corporate | N/A | — | — | — |
Closed Block | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | 4% to 7% | FY2026 | tight_range | New |
| eps | 8% to 12% | FY2026 | tight_range | New |
| revenue | 4% to 7% | FY2026 | tight_range | New |
| holding_company_liquidity | $2 to $2.5 billion | FY2026 | tight_range | New |
| rbc | 400 to 425% | FY2026 | tight_range | New |
| capital_generation | $1.4 to $1.6 billion | FY2026 | tight_range | New |
| share_repurchases | $1 billion | FY2026 | point | New |
| corporate_loss | mid 40s | FY2026 | directional | New |
$400 million · During the first quarter · funded by free cash flow
$78 million · first quarter
$1 billion · this year · funded by free cash flow
$400 million · first quarter · funded by excess capital
3% of our shares · in the quarter
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
The first quarter marked a strong start to the year, with solid top and bottom line performance across our businesses.
Customer demand remained positive, as a strong increase in sales coupled with good retention rates drove overall premium growth.
Actions taken in the Closed Block in 2025 continue to result in an improving risk profile including some employers’ decisions to discontinue their long-term care plans.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.