UNM - Earnings call transcript Q2 2018

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Operator

Good day and welcome to the Unum Second Quarter 2018 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Tom White. Please go ahead, sir.

Tom White

Great. Bettina. you, Thank and conference everyone, the quarter second Good for welcome Unum. earnings call XXXX morning, to

Our will fact. are not remarks statements of are today current include forward-looking or historical which statements, that

materially Form As actual Exchange forward-looking Information Forward-looking XX-K filings differ factors in a concerning XX-Q. Commission, with to the the suggested subsequently annual could sections results in results differ Statements and statements. cause Regarding result, that and appears by located from Statement might our and Risk the also ended these results our are and report year Cautionary on for fiscal XXXX December in Factors titled XX, Form filed Securities

turn McKenney; and are Simonds over Unum our call President Participating Life; in call in update the in included of Our publicly Investors Tim and Zabel the reconciliations the are any in to Steve the of US; measures financial most his now, the obligation section. Investors presentation in we Colonial comparable for statements. of statements section as at for Mike the of made, call and GAAP for statistical for you morning's I'll directly segments: Block. SEC be no or our only McGarry; measures conference CEO, of speak Peter UK; our and O'Donnell Unum date to can that be filings today's in found Arnold for they A non-GAAP as supplement presentation found comments. this Closed as the revise Unum.com. undertake can website, today's I remind Rick And any forward-looking Jack our business website, in and Rick well CEOs CFO, Unum's the

Richard McKenney

good Thank morning, you, Tom, and everyone.

very second good the was quarter a quarter company. The for

per net income which $XXX share. is $X.XX totaled million, Our

per earnings the in the share to operating earnings of increase months year, per first six of XX%, second is an the XX%. over $X.XX Through share $X.XX of our adjusted of has quarter grown Our compared XXXX.

Our experience operating continuation from quarter our of favorable overall benefits solid result and growth lines. benefitted in positive this business the premium trends, including core

also are rate. We from benefitting lower tax a

pace finally, Our $XXX increased to And have the share with XX% our an capital marking up repurchases also a this $XXX dividend has quarter, year this of we million. bringing XXth increase. dividend quarter, management million kept of additional in

Looking closer core income premium led quarter, strong XX% premium increase by are and margins, good are growth, at our initiatives at core for sales our X% focus businesses, we businesses. a this almost while up maintaining sales off, for Colonial our paying Life. were Overall seeing as grew

a from saw overall Importantly, margin lines. perspective, across we favorable our of generally experience benefits many

steady the efforts for us Margins our U.S. are expense cash future. our keep as XX% acquired healthy producing, allow also while adjusted in are a and results capital to we us expense operating of first business in grow franchise Strategic The insurance XXXX in an dental ROE Our core half to allowed businesses our foothold again core of invest solid deployment very management recently very the with stable, that performance of strong and consistent plan. lines. flows also produced ratio have UK. continue combined their the investments

U.S. doing both employees more in a job and of people great are Our XX,XXX protecting the nearly UK.

appropriate decade have monitoring care After doing been ago, increases Block sales almost price we've many shareholders of We've taken Closed line in of overshadowed in care and a our managing for business our our a insurance by been loss there something also Block care have stopping LTC efforts business. XXXX record higher been For these been saw LTC individual the Managing we ratio however, customers our from trends long-term on insurance. deviated serving first of great over line has of where years. long-term levels brings but at long-term Closed our was This we to of accordingly, earnings, our was them business a the challenge was quarter the We us we've when had in the significant updated when industry. LTC which time one in the year. throughout assumptions that our market have quarter and focus this time.

While trends were our we reaction results, not disappointed too in drivers. reserve in our with incidence the was our with we thought alignment underlying

our of the I'll provider have reserve time, during in that at It is third has feel to us XXXX. capital Jack execute But business Jack? end, on is important current workplace. as the To quarter's turn cover progress. our view this our much very has give core franchise momentum. to more It be as up analysis. you the shareholders. same the give completed and still benefits to continue that return quarter. executing now anticipate is the XXXX therefore beyond. allowed work throughout and employee is we will quarter our wrap end, strategy and annual accelerated well the quarter second to it continued Jack analysis details and and significant clarity generate to significant committed financial grow And the in We detail of flexibility reserve We to call us strength we Block, Closed one is a of Overall, to will the in of look a undertaking trends the strategy our the we to our we're of quarter. and at that leading to to will the now, build possible. the third that To being work over on The manage

Jack McGarry

our and primarily low investment the level on the for everyone. The year. due these results to disability Rick, Within yield. US, good benefit the and The that this this operating portfolio our trends and of on quarter with lower group declined backing resulting Beginning by backing income major the lines. business our in disability along very with good ROE XX.X% to second reserve current the quarter group update the deployment provide the across operating has on it US, portfolio ratio line update a premium quarter, net reserve on amount for this stable for generate for and assets the morning, steady its persistency the reserves statutory third expectations puts earnings, plan. work reduced our this to favorable XXXX quarter care, to capital first of to quarter IBNR second Unum in the adjusted line. and trends $XX.X progress million capital update on levels and lower Unum you impact lower are investment long-term our from important positive are yields income, good of a commentary income. another what was continued business I'll for you, Thank income, our been review continue in with pressure net capital, capital on pressure we expect reduced with With adjusted accretive in and

results lines lower product favorable primarily declined in quarter. line, an had quarter. second overall products. AD&D of increase lines. benefits strong growth lines. the the trends X.X% in in to group for due sales continue driven generate in average in the income ratio sales the the generated lines. of the $XX.X product driven Premium XX.X% X.X% with the income in year-ago risks in benefit accidental the quarter the in income XX.X% in to experienced some business Sales for increased short-term and offset quarter, claims with million, by incidence the trends. X%, being life supplemental higher We lower group's income second The to adjusted quarter product by the primarily vision across in the the disability long-term benefit improving disability primarily incidence XX.X% quarter to line by major to and rapid partially in The million second second by by driven disability in Unum of see the the in to positive a line, improved voluntary our did in the group increasing disability disability experience a second with quarter Premium due and claim slightly rollout Risk ongoing increased claims to product the to which year-ago recent second the life experience and the year-ago in some group quarter benefits adjusted voluntary was voluntary slightly $XXX.X group very dental XX.X% favorable persistency from XX.X% for product The areas operating operating compared X.X% lines. quarter, size lower individual by the the in of was dismemberment continue from group of vision death our strength see US growth ratio in quarter, line. for core strong by in line second in and the We and improved market dental life segment

to persistency We the be continue pleased US Unum business lines. in with our

For to environment. continues the from group of operate persistency and for in first Unum to UK in the combined our XX.X% XXXX XX% half improved of first half lines XXXX. difficult uncertain the

increased second of backdrop, Premium a by the volumes, higher sales second X% saw earnings to Given also experience to disability, operating slower second by to ratio sales income the rate million, income adjusted quarter and in £XX.X adjusted increases quarter the by slight increase this X.X% an declined in Life XXXX. in half improved, Colonial increased benefit generated at expense Premium quarter. ratio year-ago block. which favorable the line expansion £XX.X the group year-over-year the XX% in - in higher of of territory local the Unum the dental on benefits for first of with from increased result experience lines. a introduction the investments year-over-year, driven quarter, helped higher the basis business quarter. comparison, sales growth. disability rollout for first first XX.X% XX.X% in on for by of in group the XXXX million. the this growth quarter. Life the sales primarily sales of XXXX, XX.X% XX.X% the strong in which quarter. quarter. as currency ratio by that in improvement million The million paying implementation compared active the second quarter our encouraging a compared off year, cost group from The quarter. XX.X% The life disability a by related increasing claim we life Colonial in quarter new UK to partially persistency showed product given Colonial in sales for of primarily for to in Unum with at compared growth by quarter long-term offset year-ago Life second products These the prior period offset compared to Colonial well, Life X% $XX.X improvement the XX.X% of of of half The the in increasing Persistency operating UK in trending certainly was was our quarter XXXX has the year-ago benefit this improved particularly up driven with due X.X% distribution benefits second to supplemental is half system. the produced our $X.X last with initiative, investments was are dental the year-ago quarter operating group the in largely in slightly the and Overall

strong exhibited and Sales for categories rollout, product all existing increased dental our sales accounts. In the accounts addition also other from new growth. both year-over-year to

quarter in was product to XXXX adjusted interest interest year-ago quarter. line, income XXXX. to line care as XX.X% from and of the to this favorable, million impacts Moving income increased yield $XX.X of $XX.X the was from adjusted life the while the and Underlying Closed in quarter adjusted as levels. quarter second by improved again the a experienced claim XX.X% in to levels second XX.X% the reflects second claim quarter to individual recognize ratio in the year, XX.X% In second be quarter adjusted miscellaneous this the in bond driven the to second were benefit loss in the Benefits active the normal on reduction not results XX.X% The loss incidence higher investment calls first was Mortality ratio the challenged that the future disability risk of as new interest the compared quarter in tenders. this discount Block than to compared from favorable of expected. quarter. operating business continue million terminations the higher increased to rate first the impact block performance ran in year-ago reserve ratio quarter long-term more quarter higher and portfolio resulting year-ago in for the declined

loss premium increase As care the has timing in this past rate long-term by has assumptions impacted effect on approvals first had GAAP benefit with the recent in X%. effect of our ratio for we to the quarter, the reserve unlock will to and currently that ratio of to the our the eliminated. the continue analysis we adversely be our described impact reserve reported increasing This by If underway, results X% be line. income this

as said will review review Rick data, benchmarking. be utilize and as of on all annual consulting quality We industry completed, now the opening as assumptions our you accelerated in the of in that our focus actuarial earnings outside and and As XXXX. analysis. will on in the third quarter internal anticipate performance, firm completed our for in analysis read recent include will long-term care reserve business external well work his of assurance comments The light a incorporate care work we most an recent Once also release, our long-term experience. and market this reserve

thinking, of current subject closing Our that process. we as third is to to increase may reserves our our the of quarter our part work need completion

expect execute exceed repurchase will not on reserves have work to is do expectation ability a that GAAP are share including care after current we our still assessing We will not predominantly Although, plans, our we capital and event to $XXX deployment potential of our any that and our increase assumptions, strategy. likely reserve will be increase likely still complete our impact tax. long-term million any our

past of beginning the windows, we quarter, results per with share not anticipate quarter into trading currently repurchase practices of XXXX will fourth of we approximately resuming reserve share until analysis. regarding announce our repurchases on consistent XXXX. the We in $XXX and program execute million However, continuing our

early foregoing inclined We for rate the XXXX or that shares are to quarter. buybacks historical late additional repurchase in to XXXX third run presently above in compensate

the you to analyze However, and practices evaluate fourth update management our our quarter. The we past consistent XXXX reflect share we this We'll reserve will with plan at as this undertaken about assumptions capital our at with closer details Meeting. Investor we've get block. to December more and is active process our

trends assumptions reflect affecting to evolving block. are reserve We our updating the and the claims experience

care keep long-term relatively Our is to therefore, with and we want our experience. block pace young, assumptions emerging

as is effective appropriate, pursued successfully manage the increases on also the have to We rate imports and aggressively business most which way block.

anticipate cash support made in long-term We block contributions our have the these plans. routinely we each capital year care contributions and to deployment

capital to also from to to with return and help increases. that manage the long-term and of It to a do effective capital to strong Importantly, shareholders, care this company, minimize we the very will are dividend managing block result positioned are can block within of the disruption We well generation successful repurchases Unum its volatility. leaves and us leader share with believe benefits our is by the path reform. consistent flow tax scope flexibility a that this growth an enhanced market broader cash and sufficient capabilities fund

exceed Interest expectations long-term trends we also they spreads was on this in are and assumptions. money for current portfolios. to portfolio beneficial quarter new were which care, to product as rates for our embedded realizing favorable was quarter, from us all our in have of the favorable second bond we back it yield quarter's a continue a perspective long-term our in Moving care

traditional produce U.S. Moving the on, of from statutory insurance company levels earnings healthy continues to our companies.

to statutory the million earnings For quarter. the year-ago $XXX after-tax in second million, operating quarter, totaled adjusted compared $XXX

for U.S. totaled quarter. $XXX approximately company's reduced $X.XX holding very position. was risk-based adjusted of that subordinated of remained the position during shape. million For our a billion. our of includes at half issuance capital After insurance position million cash capital life The totaled statutory of cash ratio paid second quarter, the end second the after-tax second which subsequently our notes the our note, million. At companies traditional cash $XXX quarter, good XXX%, we $XXX end junior of the operating the the while first off maturing XXXX, The earnings company from the

business. as another Our XX% to by stock wrap in in approved million the adjusted reserve a earnings our repurchased on the common for in I'll board shareholders care of increase expectation of this long-term of May, increase XXX a adjusted path, range dividend, XX% XXXX our capital Back to quarter. share consistent XXth XX% excludes reiterating is share, annual the the up growth The operating per consecutive per in $X.XX our we potential base of remains earnings any return increase. from stock our projection in and for year. operating

his I'll call for closing to Now, Rick comments. the turn back

Richard McKenney

I'd Jack. for a just it's all, quarter all Thank company. you, reiterate, the Great. in solid

by any businesses. encouraged trends can working operating we And as that aggressively we are LTC quarter analysis, complete then. core can reserve the of are so and our third be more produced impact provide our said, potential part also We in detail to Jack our reporting,

We to will question. take be happy your

I'd the session, Bettina? Bettina question-and-answer to So ask begin

Operator

[Operator Hughes today Instructions] Please Mark of question from you. ahead. Our SunTrust. Thank comes first go

Mark Hughes

Good Yeah, thank evaluating… In morning. you.

Richard McKenney

Good morning.

Mark Hughes

Good morning, in jump care the of had when that incidence claims long-term for the do you you block, block? your out last What this evaluating or give over much How credibility some rate quarters. a yes. of life review give how can obviously In incorporate parameters you the current the in couple how about frequency? would you thinking us - this forecast jump the the

Jack McGarry

we've our to the credible look tend very long-term very claims lines. Long-term certainly line. analysis. to We incorporated those reserve a at isn't periods. into quarters is experience so product Yeah, relative recent multiyear Two over care trend long-term

outcome. the does it But a impact some outcome. of and driver major influences have not the certainly, So it's

Mark Hughes

or a to as that? a as the Is just variation far tell there? visibility incidence you there anything something bit, read up into you short-term emerging can that is in Then, claims saw

Richard McKenney

you Simonds, to do that? answer want Mike Mark. Thanks,

Michael Simonds

Good where is, saw Sure, from given wouldn't as is that incidence how short-term we're happy good also line positioned in of Mark. I answer to. for view we're disability, to line. We the the too renewal read about nature well. pickup a new move in into of And product a experience it. general a that's little a morning, point is, credible the quickly able claim anything Short product feel in of pretty bit much but

this bit So very we the really a contributor little good while segment. did issue group that's uptick to long-term - disability a I see pretty there. an wouldn't healthy of And expect quarter,

Mark Hughes

you. Thank

Richard McKenney

Thanks, Mark.

Operator

Randy of Riley B. take will a from question Binner We FBR. now

Randy Binner

one I care that stayed the benefit of level morning, that at thanks. first Back Good relative to again the high the the was into ratio to the reflect how wanted in thought on a to ask maybe the not ratio of first quarter, benefit second just long-term flu mentioned the appear and that. on pushed to they some This saw effectively situation, to and kind be we continues just in in XX%s, activity And favorable. does think the where on I support quarter, population that less mortality claim. you went some quarter. that

is interest or ongoing Closed level of this going benefit adjusted potentially for net in the XX%s LTC Block higher my the the should So and on forward? we plan question ratio high in

Richard McKenney

say quarter, first and first active would in our block, high lapses So in claim so and compared I deaths start we did unfavorable would quarter, terminations quarter the this the looking very have also quarter. incidence. high levels mortality incidence active had claim we In at block. claims I continued. But we had very the the to

mortality more kind long-term life back the at well. time expectations. toward as - the closer to active a of Still it. norm terminations same bit long-term the towards But much long-term but However, expectations, the above little to reverted reverted our more

the a loss and offset And two first of incidence. quarter ratio so, with things of to level left those in very related each we similar in the quarter claims were other kind

very six long-term terms or turned been periods of of actually is care. periods. incidence, quarters either in seen around claims In incidence at two that does low quarters looking other elevated in incidence very where four trend not make there've and We've

incorporate not current it's said is our though, we the the assumptions look and it So our quarter forever. first we too that that quarter, this read we're wouldn't wouldn't I assumptions, With as - experience reserve will at much have and into the second work expectation update we our seeing.

would high post so, not ratios loss expect the XX%s review, And to assumption in I continue.

Randy Binner

If up guess, review with question that understood. consistent Mark's expect picking the it mean, is, review. Yeah, just keep guess, that's of ratio a answer that XX%s, we I the over seeing reflective on high because time, probably bit. lower historic the the little is question benefit is I in little develop to a fair? I more is trend, bit would the

Richard McKenney

Yes.

Randy Binner

All lot. right, great. Thanks a

Operator

Please now Bhullar will Jimmy go of J.P. question We Morgan. ahead. from take a

Jimmy Bhullar

Hi.

result you maybe that how at year. give - quarter up were incidences in And on think So roughly much idea of similar on to first will the could of assume if that is on amount guidance the incorporating your review, because expected the assumptions million have long-term but incidence elevated of first the this just in I end $XXX interest for uptick amount care not an you these rate before, level you've incidence seen? you half higher the being? would year, first you the how you've versus us assume much that in changes than But mentioned seen higher this the

Richard McKenney

Yeah.

we haven't So, assumption haven't still completed our finalized and Jimmy, our set. work yet we

all position provide when parse are. those not individual we in to we what we're do and this finish specific anticipate that assumptions looking at guidance actually of changes the note a and more We results review talk assumptions. the it's a a really do different announced important is the will the review. of about to So comprehensive that work But work. we the that It's

in long-term going will same that limit thinking a care We work the in taking. on results put change. what forward. good assumptions opposed very feel impact have we But aggregate, stays that is the about progress about think out good assumption the it about we an find of as to hard it's think meaningful I we feel to marketplace. the the And

Jimmy Bhullar

one environment then and the in just and And that's competitive trending on your weak what then, sales more ask how that? drove disability if also discuss quarter, really market, the this could pricing maybe I

Richard McKenney

about do turn that. Mike, you want environment, we'll UK bit little a as about the talk after to maybe over O'Donnell Peter to the it and well, to talk

Michael Simonds

Good then sales. say the pricing first in too. on Happy and the Jimmy. Yeah, second morning, question Sure. is market would I about competitive

So think, first very customers. competition, us foremost and I to a renew to continues and the the first on for ability one. is story good there And keep be

on in I think, it mentioned Jack the year is a year-to-date last basis result a up quarter persistency just and bit from strong a XX%. over

really two business So alternatives prop new we and seen the to the sales definitely value about to delivering market. the a the a benefit in experience relative say, I pricing are aggressive would the been mix. market, that so in as frothier of we feel good first have claim particular, we have quarters, more would in what

up in second are quarter, down the bit segment We a here Unum in quarter. the in X% US the first

In forward the end to spur book. of the sales growth. a in about look around say, We encouraged flat of to as here about a to about mid. were And also taken where of started have in feeling looked do few we - we the additional mid-year We've upper we have case of in some turn, half, sight the year-over-year. marketing programs. general, kind at yet large So pipeline, second line our I'd market, actions XX% the

allowed we're to of estimate grow the about how being I'd probably think about I'll of Longer-term, able best business accelerated sort the and are prospects maintaining some or I spot, underwriting year and but full-year that get guidance, ROEs sales the to to to That's margins Peter. growth X% our that maybe for us. see market, the year-over-year feel the I talked that's U.S. over to say every we very in heading kind it X% discipline continue in and us good So the targeting. still into case turn

Richard McKenney

you're just little in with Peter, the but want sales what environment to of UK results, you good pretty on also the seeing you're take overall. a bit seeing

Peter O'Donnell

to I do Yeah, happy that.

is, their they that from businesses distracted So it's U.S. dampening I opportunities. the UK. a I a and sort see it Brexit around moment the dampening core over would of try growth franchises, think, the the media bit our the and There through of sure as you say headlines what investing in is perspective, business sort work of break from I at I is might and hype sort am growth mean, describe heading to Brexit, and a

as But some of of the liberty, over rate on government years past UK, we but However, - the I those low see would U.S. the And rates managed of very is with a are bit. say, first while Thursday, the out persistency as dislocations. dealing still seen has sort rate performing in two we keeping haven't rates, we well we're increase thing, particularly, might recovered lot we the interest like increases customers, that are the to marketplace. kept results low look Mike, we the the is interest a

a getting for future with lot are bit, of maintaining a book happy that's so that persistency really We our a of of us. and really rate sort and indicator growing prospects good it through and

in medium were with good up we sales good, in the year-on-year, As it's so and that, X% core said, size pretty with particular happy were sales are Rick businesses. quarter, small particularly and

Brexit So that of get ratio there for about the the happy as the in we forward was just and very, with good like again, line. did worry and see very Mike, XXXX. I through there We to little a look raised, on nothing volatility that. life dislocations slightly And really benefit bit

the positive about economy also the but Unum area marketplace, feel employers in with we're I will think future. for within generation, an of that, what be the so UK doing significant for growth we

Jimmy Bhullar

you. Thank

Richard McKenney

we also a doing Tim still but we'd about quarter great be is competitive that, appreciate excellent that any had? remiss comments I Colonial job. Peter. that, which team through and would I of here an had you think, to in Life, good as environment, go I Tim, not - talk terms quarter, a the

Timothy Arnold

Yeah, thanks, Rick.

that the wouldn't X% system, toward range competitively competitive, The range. end the from XX% continues Day pushing has grow. certainly employee Colonial in Investor last lower of distribution Life the to year, we end - the market market. advantageous I especially pay an benefits to in heard entirely unique the of is the but think I market upper say of

two-thirds is segment we is very sector very segment. in segment. we competitive relationships our large small growing feel really Public also But in So market. continue through a up for growth business we capabilities brokers, great to about that rapidly with the brokers in even growing competitive rapidly the feel our great a and about the About mid-market in good us and business our be segment. and of

position, the feeling at good value about our are competitive prop we prospects. growth and our our moment, very So

Jimmy Bhullar

Tim. Thanks, Great.

Richard McKenney

Thanks for Jimmy. the question,

Operator

will now Sachs. Please Alex from a take question go We of ahead. Goldman Scott

Alex Scott

peak past? deeper to have I following we Hi, question the begins getting be point, will than that deeper had that first rates ratio in seen particular, at duration are when to a frequently? the up. about you've just good guess the I And the you the tick like think where reviews more incidence on the and where got think And we're a of the you to do I I you should about lower on this book you relatively like will ratio. individual the I morning. more And like in claims. benefit was do benefit increase again, guess, recently How block, in reviews review, you get range if

Richard McKenney

going et year. be where everything the are than this consistent to really although, we going This to Jack, of assumptions, in people have about that, different. incidence and done every of a and do and analyzing up, every else. time, that then a that and through be quarter, going reviews I also the maybe And think what a resources here part about is, talking We lot as reviews. key, so think we we the And data, the block Alex, I do process. talk deeper in depth external bit about every that Yeah, review just is year the we're want talk different is I cetera. are certainly the that's you incorporates reviews, This now all start deep is we probably I'll different to deep before, more think,

Jack McGarry

And expenses. range you so set recognition ratios the benefits expect. to plus reserves your we and premiums that definition, you and in we're equal to talked that so loss future loss remind be your recognition, Yeah, of loss your by I'd in need would about

so, to And ratio would us, the taking expenses the to premium. loss rest the imply that continue XX% in of long-term a for growth with XX% up

loss would outlook. we expect that loss - your that, of improves kind say long-term that ratio recognition I'd So still to be in

long you very go around because block a - You're it's kind still to block. have a going the to have that volatility little relative a it's reserve of still that, with way a premium that margin, to big very in

to kind where so and the at take results but the aren't a gauge are updates as that's of I'd by timing we the credible And And enough reiterate action we be that you. quarter-to-quarter, need update driven And experience. Rick said, emerging driven we again The volatile assumptions by the we of experience all it. have on look when feel, of the clock. timing what I'd can time. The

Alex Scott

statutory question entity. guys that is first know, the New long-term on down put my actually cash is I sort care the into and as of of from flow, And GAAP well it. just is as amount Unum, captive impact Got cash you impact separate then, the second separate York

us And care be long-term buyback? for the be this catch terms view of holdco can of what's that you cash put up kind you is, around in access down M&A does may maybe a change anything your and bit or review, amount contingent for and that a could capital? the guess, cash What's what balance dimension I of just So used for earmarked contributions?

Jack McGarry

my on as comments, we to do, inclined where in are buybacks. so, prepared we up look catching at mentioned our we Yeah,

We position having are cash maturing in off after and note. that cash a at of very billion strong ended the paid $X over we now, quarter even

the We our high-end are still of range. cash at

resolve would the smaller that, of As a it related mostly be might predominately to - do. maybe work a that see do charge. we remains we We take and events to said life if to charge we would statutory be some reserve potential for a that disabled there's lot updates that GAAP

based reserves But As current life know, disabled assumptions. are the reserves locked on life active are in. you

change capital a position, see as in of wouldn't our this. a result we So material

Those both contributions and first capital changed our Fairwind We to have have as we expectations outlook. not very plan still Unum in well dramatically, for our contributions our built capital comfortable as feel into with flexibility.

Alex Scott

thanks. Okay,

Richard McKenney

Thank you, Alex.

Operator

Humphrey Dowling a now of question ahead. take go will Lee from We & Partners. Please

Humphrey Lee

Good thank for you morning, and taking my questions.

Just incidence. more the on to drill down little a

year, seen comparing much if XX XXXX, of XXXX to So in that your month new what claims. how to claims like so or I So about average kind you roughly more assume you've in if XX to worse of kind using talking expectation? X,XXX of I claims in are you had relative XXXX, per back We're were number. look the claims XXX seeing more

the adverse the that just do you've in impact seen size Let's past quarters? two you how

Richard McKenney

Yeah, Steve Humphrey, Zabel have to going answer. will I'm

Steven Zabel

for Yeah, the question, great. Thanks Humphrey.

of Just a probably more setting. one kind level the just X,XXX annual year, claim volume out thing, the I'd with start in claims of so is range for

at subset of You legal But entities margins levels. block. in just information what between reserves around relationship premium of of the block that the our said I'll kind or go the on one reserve a the our may looking our Jack and be back only this covers to

about of have on $XXX premium this quarterly We block. million

to of that equate a ratio you about point loss if that's for ratio. million so loss $X.X And every

$XXX Our average per claim - million claim. size I'm sorry, around $XXX,XXX is

count lot drive you see of doesn't math So ratio. do that a take can in variance kind to whole loss it of and our from the change a

it's somewhere little a hopefully the range in quarter. XXX So a you based probably gives bit XXX perspective of that of on claims to

Humphrey Lee

incidence? the rate quarters the entire that correlation like when the incidence? there the the some implementing is for so Got you driving factors is drivers of Or driving about between increases selection? with seen you two it. then, other think any kind Have past And

Steven Zabel

Yeah. is location it, coverage, looked We've of it Yeah, it this state those by at a as say are in there looked a state. show to kind analytics anything And factors. is month, by by of at we've we And from And historically. trend at looked you'd we've differing a if quarter sales quarter seen as a lot haven't Steve, week, month by statistically basis. sales done just obviously we've on any by of than it of other on certain this benefit care again. credible at We look frankly, week just that seen what well we've there. a

So not but again, we that's take that all driving reserve into that look and account the thing there's one as of our you kind that we're going say volatility. at, analysis, through

Humphrey Lee

I logistic a can of sort All in one question. more If sneak right.

to it the expect were anticipate you be completed of able - you preannounce it it your time than your if release the would complete to earlier quarter. announced by third the findings? for you choose So the review, earnings release? complete Do it will be would by you to Or

Steven Zabel

possibly that a keep the resources complete provide earlier. as to certainly would it understand we we ton do of to we is can. we it And important to soon if and an Yeah, can are we're option, as where about to markets how this work, open clarity that we as to applying look we going are,

Humphrey Lee

you. Thank right. All

Operator

Bass from to move of Please Autonomous go ahead. will now Erik a We question Research.

Erik Bass

you. thank Hi,

on you guess, they impact on haven't color changes review. this and finalized. on gives what throughout maximum party with you process can you're assumptions? one you the the you assumption of overall And consultant been But input more in point has that been care talk Just kind given engaged are at that the sizing provide just the what you can't providing finalized third appreciate a given And they assumptions? lot comfort of the haven't making the that I long-term about

Jack McGarry

so finalized though, work still of we Yeah, lot even our a haven't to do. there's assumption,

enough, some kind of far analysis, it. built We haven't experience of really around framework done gone the of we've we've kind our

of sets range at. that are a looking point to we that us given - this enough cause that you. us we drive at are I there we've far would lot the aren't of assumption think outside There see sets think, assumption along and we're we cause that

below the so then we're at range, and looking within that And ones, and even actually actually fall considering that.

respect work, So it. that don't range. with see assumption the they've at do we're looking be With to a actuarial that to But we party saying to third we We're need of got is there consulting every the us may we strengthen step. to finalize at outside been reserves. going need sets firm,

So they they're benchmarking lot of outside we of we other of the because things, making very us. set in of important we work. them, eyes, have made been the that very, provide along suggestions helpful where been still And sure industry validation in have provided ways have going ahead of data them consistent engaged very and assumptions. can look the terms that be otherwise. to for independent of a are and picking assumptions way wouldn't to an They They've review they've are in and at quality access been we're industry. necessarily with in deeply involved people the have assurance They've in work the

been we're with helpful and the be So and we at to done. looking very board keeping lot have work pay to our work been doing, what more them they've

Erik Bass

you maybe of changing, to at the that How point? the assumptions when changes on? And to and for Thank assumption complete disclosures the you kind are assumptions even review, - in any future incremental color. the sensitivities is provide your intention individual those

Jack McGarry

we at for the a completing heads haven't really given work, Yeah, we point on completed marketplace to our additional a event. we and we work finalize and are look so that desire the where conclusion disclosure come the assumptions We Erik, I'd driving at this say there's the of this do work, in down as to are. recognize

what turn disclosure, will our We attention to level we'll of determining have.

until I details will can't tell marketplace be the detail to of the more there you we get where will be try they will We and just work. kind through what be is, exactly consistent of with level

Erik Bass

rating Got be that accompanied could additional it. just And or your we if future last, experience requests assumptions make that. just increase as Thank that rate assume appreciate if you. the that, I quickly, changes to by you well?

Jack McGarry

Yeah, point Erik. make, to I that's an think, important

piece piece at missing as only of reserve we're of a be look the you'd you the being If of assumption, what charge big doing. strengthening

the because investment we first of And years. current reserves assumptions, so margin in under peak when our four last the three of assumptions you our had there's underlying we've really that strengthening over is, components reserves that the at look had the

absorb And that so go assumption to strengthening that the margin. first that thing any would to is

second that underlying that, the strengthen assumptions also refresh our rate we will The piece as is increase strategy. we

logically in of underlying that position terms increases having had a in completed XXXX assumption. the are rate We good we our

increases of piece, future So the once two charge. lot that then into those build rate assumption we room actual reserve the third a gone is through And our set. on have you've

we're about a So assumption strengthening if underlying set. talking three take together, you of really components those the robust

Erik Bass

Great. Thank you.

Richard McKenney

Erik. Thanks,

Operator

Gallagher from Evercore. question will Please of Tom take now a We go ahead.

Thomas Gallagher

morning. Good

First, circle just a care back the to process the long-term on bit little understand review. on just

another and adjustments would guys be in to XXXX, think that Jack, but any describe to at say will you So you caveats same process have standpoint a as case? there's reasonable three from make expectation? high probably least after took you this for the charge years. true unlikely the I at and still some still a Is procedure a in here, Based level. that realizing Would

Jack McGarry

more rate related we when that the the in we charge was as environment. interest a you took say, was adverse I Yeah, it rate that remember path interest would pretty XXXX, and statement to had,

going play are over time. is our of out this that, how best to is guess hope Our things

they experience longer putting together I those. we to that, lot also robust mean, as would monitor life really best have something it hold. feeling That we're assumptions the last to will that period. set, hopeful certainly really like last we're we're we're least what estimate than continue shelf expect hopeful of of for future a that emerges is it at So that. dramatic longer a a they But to that. likely We'll happening than without related that

Thomas Gallagher

the interest in most So say based now longer in discount to your forecast rate, be you're it the would on term information of is adjustment adjustment rate is then, - the case model? fair that that the

Jack McGarry

but Again, is a deep this in assumptions. work, comprehensive all No. of we're the review

the for that that staying to going would as views would over out those to I same play I put and earlier, would best an We're time. exception. We're the assumption we be to experience. at views our going think, expect everything. it - emerging look going update together stated We're it's

Thomas Gallagher

that to? versus you the Got statutory adverse versus been it. have experience by highlighting, guys X And that adverse first just points? X to then is half your adverse that Or GAAP assumptions the is

Jack McGarry

best And you a things view reserves you that at are assumptions That's when a GAAP estimate generally develop as that's an play don't look your good you question. your statutory you - of to on run look really reserves, were statutory going GAAP, you how you When at versus by where when out. basis, statutory assumption assumption.

and You that's of your then higher are that is, future best the whether your figure GAAP out estimate. you estimate, reserve what estimate reserves your test than statutory

position margin that assumption higher assumptions. do would than reserves. a a statutory a in were reserves the right you strengthen on the and based don't a reserves anything And by we review our same to our seeing on GAAP be statutory you needing still basis have as your basis. remind I'd underlying you year-end, stat you So reserve of update that do between $X.X we're wouldn't GAAP When billion GAAP our on of statutory reserves. reasonable now, we assumptions

reserves. You wouldn't was statutory GAAP unless unwelcome your your best estimate above reserve

Thomas Gallagher

here really ask, matters is - GAAP. deterioration that's Yeah, I affect it's why because going to showing what I get it that versus But ultimately, the capital.

just just, isolate guess, adversely, margin statutory, developing more just is you is question enough isolate trend have if in experience? or the is not I so, And I that my we the adversely recent embedded that that's developing recent if where like

Jack McGarry

reserves Yeah, steeper GAAP are so statutory recent on even than reserves more trajectory our are. a our experience, the

remember, we stat at a process. example, after million XXXX $XXX GAAP billion. several now back - reserves. said $X.X that difference And We had so We're strengthened GAAP you XXXX, for in we

plans built don't are a that into basis, ongoing that really capital not subsidiaries been haul. so statutory result and our steeper are trajectory into strengthening is our - We an as - to on than those a the have long capital a capital reserves excess but on it's of our change. We put regular And strengthening, contributions part plans GAAP. the expect over our capital

still GAAP We expect than faster statutory reserves reserves. to grow

built our for our expectations continue deployment. of expect to capital fund out We that to plans. capital into And that's

Thomas Gallagher

can. Okay, if thanks. just one I And final one

just amount appreciate can some inputs, I commentary your from good puts the of pretty that trending pretty give capital cash holdco clear generated you you output. the the flow value buyback on the the you've addition you'd the leverage delevered the you ballpark range the between, planned statutory to reduce the potential the the you - this of given the been your good? impairment? - of at us now resuming And business because and on, it's you Just But return give at what just GAAP hit are need if some contributions and how year of you about you all, Do you do given with of get a talk pretty assumingly end has book of you take us you have have core need all? to in can out to probably Thanks. Can deleveraging? high cash, takes to have that

Jack McGarry

perspective, Yeah, we that that so off we XX.X%. quarter ended brought when maturity from a $XXX down paid XX.X% the leverage, the to at leverage million

leverage. look at on top If end hybrids notes. into the that's took even get that debt, unsecured within you favorable we range, leverage in We issued quarter senior the higher to but to than we X% X.X% reserve at the consideration, of treatment end our comfortably impact it. for the more example, still of charge our when first We'd issued be the at leverage range, of the

have we a So comfortable margin.

year, a growth charge, pretty good our result The do steadily we of be at a they'll is book in of, is, thing little but delevering take as other in X% if that book that up we're at pretty a and value hick growing X% a the itself.

Thomas Gallagher

thanks. Okay,

Operator

of question John UBS. go Please ahead. We take Nadel a will now from

John Nadel

Hi, everybody. I long-term on could. care, thank if A more you. morning, couple Good of

cushion couple reserves grow just how fast looked again? does the we like hundred is it reserve that this looks stat cushion down and Jack, that if charge What if think look over GAAP million. about the of and we a to pretax next to between potential couple GAAP at that $XXX And years, upper your Is end point? So like million of forma $XXX on a I think of million? basis, pro

Jack McGarry

mentioned little to as difference. event, and has many that a a we say, hundred the at to that would we charge, a - been would a on over that grown GAAP past years, stat of It's will grow. probably of A stat bit reserves year, of it's I that stat the higher GAAP Yeah, couple a north disabled to continue the But be it impact reduces little of in the GAAP dollars life that would that difference both a we to end future. the million so expect charge. and continue piece related expect small

John Nadel

But million, okay. least this $XXX charge portion some the charge, reasonable? forma at that at immediate would the pro in Okay, impacts we're at small charge post of the cushion million, million, what, that being looking assuming $XXX something for be $XXX I'm cushion range

Jack McGarry

reasonable guess. be we're mean, finalize work, our but Yeah, assumptions, we a and haven't I still completing that would our

John Nadel

ages more incidence, I about see incidence the blocks into other maybe before incidence as claims But higher fact your doesn't here coming be is credible example, just and Jack, it assumptions? experience, wrong, quarters the thinking then, new out as it to but appreciate your I fully recent far is the I I'm and And as So that? your somewhat younger let's the here or you've year seen today, is that likely some surprised guess, there. other block Okay. over to your that incidence more hear that that intuition last for guess - to you past year the than far discounting relative two and through block matures, than be experience wouldn't say my three employing to that

Jack McGarry

long care haul. a Yeah, is slow I mean, long-term

year, getting so, the And older. die they're year, - fast older a older the But people are because out. the as not is And not of like a block actual thing. as long-term would aging result, block it's getting a things as ages every you

the you're a precipitously experience block, things past. aging one the of make two of looking would underlying more in of again, happening than either or - credibility that quarters claims around the quarters have And significantly claims of or the at credible the against happened nothing experience that the two decade trend. there's block, So

a be go our look if off I it at wouldn't And back jumping So experience, to point. you again, it.

It's business them the care. there over but done get are decade. of volatile. had the that four have has line. our And four it this long experience - effective two, by you been aren't things managing haul, been If significantly well quarter, our long job it three, It's to the to past to over It's we've very be periods that business. think the been two, going a pretty been of There experience. over almost three, quarters, allows rates nature below where coming. not elevated to a time, good that There's of And part trend where volatile. you have you quarters haul. is going manage the that's that we've - plot it of long-term emerge cliff be incidence at emerge in They events periods see I because

John Nadel

I appreciate real last ones. all those maybe comments. quick got And I've then, two

how would margin several excess generated the in that your your you since changes think some past already years, terms the I the think quarter the block. reserve in on the of incorporate investment that, assumption mentioned through fourth the you've worth today? of block strengths about update, of over XXXX If and the charge you income much is

Richard McKenney

It's earnings rock loss what I wouldn't have do, had been mean, our ratio the the I meaningful despite increasing to, a that amount. that is fact actually we've fact I And what point an I would that what's that period, steady. worth. pinpoint over exactly you

And the on the pressure has loss margin so, absorbed that really ratio.

I I'd we the way, number think pointing. so, think And that don't but it specific have about

John Nadel

actuarial you outside are actually firm just Okay. And then, which using? lastly,

Richard McKenney

can't talk about we Yeah, that.

John Nadel

Okay, thank you.

Operator

go now question will Citi. Kamath from Please of a We to ahead. Suneet move

Suneet Laxman Kamath

much two you've just or Thanks, on than that XXXX seem And where increases. to bigger stuff charge reconcile charges despite trying I to it's pre-tax, some want taken like of $XXX gotten prior based and at charge the the so been $XXX I good the incidence the saying, to saying, that it, because so that doesn't sources causing past these to what you're understand here, before are seen try you've what much too have morning. that's in fact you the is if that million of than I'm bigger be think XXXX. really we've I pressure charges, it look rate million scaring and

Richard McKenney

than necessarily think don't much I bigger that so before. Yeah, it's

the XXXs. our think high I charge XXXX was in

growth the to smaller again, charge, I'd the work relative this is XXXX to million the reserve thing yet. the charge you we and So senses, in haven't that And in point actually around than was is completed pre-tax. $XXX

number our assumptions where are. we given reserve finalized not haven't a We've are likely We that to you exceed.

haven't yet. you We a given number

I'd we're make your is. charge see to done do us And to possible, our And, allow us where quality off, to where going we the patience validated allow to for those sure finalize that as but assumptions so, I'd are, all work, quickly our as ask assurance. assumptions wait and mean, the I hold

Suneet Laxman Kamath

a get Understood. how… sense I'm of just to trying

Richard McKenney

a is charge. If there

Suneet Laxman Kamath

Okay.

I in have relatedly, in a that for filed you to then, then So for - B? time? be of to similar you - and not scorekeeping been GAAP built Is here, just think approach this going to, not that in reserves. are actions that had that sort your past approach wanted approach right, the future I Is is rate A going take

Steven Zabel

Yeah, planned of of think rate question. Great, into increases There issued recently makes requirement reserve at always approach. that future that go Steve, Actuarial at for that had is adequacy. actually least for XX before that Suneet. rate Yeah. best a any methodology, was This statutory Guideline to been how our an that best It our makes a a the be about how thanks requirement would strategy That kind we you of is least estimate estimate. estimate. put of in have place, action you our

Suneet Laxman Kamath

was thought then, way And it call, years. this on was or was I I the the I lastly would it just last to couple bump maybe it. guess. in rate point from of X got approvals, X that - wrong Okay, reverse the had I described, but over on you're thought had that getting the delay a

And because of seem making make or is off that away. that understanding on –or that regulators agreed is a so, would were had that essentially made it kind they something you take my right this assumption - that to hold was want sure just maybe too, the implementing. that's it if I But like go the charge

Richard McKenney

yeah, to just the but to up reverse catch level a rate it delayed, because They've the in we increases. couple we years Yeah, of so to expected been wasn't expect get still them. over premium

we And and approved course get the difference, actually couple over its years would But matter of not so, as had economic increases a a the fact it's taken for those is difference. timing nature reverse that rate of an them. implement

assumptions, our things be so, it'd And able we'd up. clean we the as one to of be update that

Suneet Laxman Kamath

Okay, got Thanks. it.

Richard McKenney

Thanks, Suneet.

Operator

We now take of from go question Deutsche Bank. Shanker Josh a Please ahead.

Joshua Shanker

Yeah, thanks. I appreciate take question. to my late you extending call the

are the this the thinking charge are preannounce the size method now everything especially what charge, and the ones I the the what XQ. from in inducing one here a size into whose from facts the a is are. most assumptions you Am up and in claims than risk experience backing they few saying. the here charge I a used, up? probably you incident going that be if a recent that is of not that have or So as that, the charge, to is going things different hopefully, wrong the are the I chose together. saying that rather Is is of in there ground you're you really mean, are you've there rates that ground of risk is am on recently right might to what be to starting Why the determine assumptions pull there experienced?

Jack McGarry

we're bring all do. looking to little let at a this. back feels like the bit driving is assumptions. And not the that's me the there process one everything to we through it It Yeah. We're you're assuming That's assumption do case. going

analysis, experience in our do experience to first to a that exhaustive The process and underlying relative assumptions. step at emerging looking thorough is

made made of as But box. which kind we've wide the progress pretty playing, understand we've work the enough box yet. so, not progress We've completed still work. a we're on And to that is

estimate So underlying our that's assumptions the choices It's That the of drives step. analysis. analysis will be. experience best experience what first around

choices, through make we As models. our results run we projection the those

understand analyze the how what to are, different experience but what results, You and the those after drivers not of likely scenarios. incidence emerges, that iterative it's analyzed And need process. those an that understand function to results, will produce only sets you've underlying also step that's the that as generates, understand reserve and of earnings under back reserve

identify to you some So tweak you'll process. will analysis go of that want back things and in that the may

So we're working right through that now.

that assumption not a last it's we're So there. an what assumption engineering assumptions making in around the an X of that portents analysis piece for set. But covers the set over really here's what the that experienced to have there's years, It's single we've sure think engineering a result get we and we future, not XX robust that.

Richard McKenney

you up-to-date things assumptions think it make said, there determination. of the include which important. are I through point will the are Josh, And two One when we

assumption, absolutely second to top-down Jack down every a process as The you it's talked talked dataflow. is about, bottoms-up about a - being

to we've you XX% I so, think think team that third done. process And now, process work up this to is, more look process. that with the all the But faster the that in enough can there's the we've forward Jack And the call. where And a reasonable bringing said, it's team they the we'll still close and numbers see people in. Jack come in the in with from where we it appreciate the And bottom to to important, rolls do. make what certainly seen as they're I quarter. But work, and quality, that's the going

Joshua Shanker

pricing you that pricing reform the be should And tax be having where thought the weigh today, on trends so completely given you disability in now, front? right they'd can unrelated, impact

Richard McKenney

Simonds. Mike ahead, Go

Michael Simonds

it. take can I Yeah,

and about that is, do a you talked a talked we bit relatively still - of a when margin of of saw tax like really us about very of better. give normal disability, off we sort we in that margin X gravitation. group But pricing then market. just to reform which X we as about - few magnitude I points take back the that of business at it would only when went A see still what And of a business. it's talking to the point through, low industry, when and in as on we the general, look the the for of logic holds, tax we generated a So a premium, percentage translate reduction it's percentage think you're kind tend to a

then, certainly half, first directly I'd I tie seeing bit say in we I'm I to in underwriting But experienced actually are so. through us, abnormal. again, of it, discipline. good the the look a is optimistic we many having increase, growth going what cut. are XX%. very Renewals it times, do back most I able wouldn't important call tracking place And a in sticking tax a second general, this to persistency ahead clients the XXXX. rate story. the It's is look at been not I are here But half, abandon renewals, to with placed about us cycle it when terms it we're And So competitive we in not segment. to of are the than would more we in to as for pipeline plan at need over bit where

Joshua Shanker

you Thank for answers. the

Operator

Montgomery question comes next Glasspiegel Janney from Bob Our of Scott.

Robert Glasspiegel

Unum. morning, Good

operating question. a it million the is down went income months, drive dropping, is sort seems your since is a and when to economic and statement, X ask But investment This in normally, $XX public, earnings. ratios like is through you're income - group the the Sorry your disability your underlying you income down adjusted Unum where improving rate unemployment benefit point million. cycle, followed of having $XX adjusted and

than what like So just back more be? comparisons, it income, that sounds would investment there's something holding

Richard McKenney

Rick appreciate let to all to disability - question. your I'd of that Mike. over And it's Well, Bob, turn like we very group - first much say me

Michael Simonds

the claim less very couple. the importantly, on steady equity. which total return million of capital a of stepping means as highlighted a - basis. from being kind us to think magnitude a I when one about think from when I of if had over the stronger shrinking group business you on line hit And quarter, second on to where is think and behind it changes, it is generate done appreciate of patterns, for the decline efficient. the at when based just the look maybe it that to a pure you've certainly, a primary experienced work disability. some Bob, quarter yield, operating assumptions just modestly on have and we efficient that equal over allowing the going bit the we've pressure a But finding yeah, I take I And at headwinds money, a portfolio And about in Yeah, a before-tax question. around those prior new more look - I reserves the we year assets slow back incidents. updated you of else being invested leading one next is bit. looking the That few sum thanks. strong said, headwind you And do spots dollars all we've that's pure income recovery quarter persist, Jack even think mean, pure got and more earnings capital you order out block. And think favorable you kind on of

solutions. just seeing management, The So a of we're technology And ratio added business disability. some a It's plan capabilities, disability. contrib where it around around forward. grow going the the now we think highlighted in we've of the business, in the some with find compliance to group right look group forecasted going helping profitably. group I Investor of be in Day. the be think certainly and ways to look in it, regulatory grow growth with in individual will stability And outcome business. when healthy We've trends growth offset in our And particularly in leaves. we really for at absence a as The across corporate to leave, then, true those I around headwind is, some line at tick as in bullish the we're group employee pay, mean, mid where at and then, over employees all business. I more contributing to stickiness that quarter teens high disability retention XX% client loss would the we the here in we're leave I And of growth to are

general one say So that's I'd picture on group of the disability.

Jack McGarry

relationship past the rates and the gone are from is that. X rates significantly pretty and Yeah, I would discount that have treasury McGarry. Bob, and improved rates just to have sad between this Spreads relative money benefited have we Jack over our new months. as widened our yearend well, underlying up

Robert Glasspiegel

me I for And sneak long-term if this could your what remind block? care Okay. you one undiscounted can is question, reserve

Jack McGarry

that sure question. not I'm Undiscount, understand mean… I you

Robert Glasspiegel

When - ahead. reserves you up put go

Jack McGarry

don't less the benefits we even You sum mean look don't - at that. future premiums. like of We

Robert Glasspiegel

the trying if ultimate off just see, discount you're analysis? what of magnitude of those years, before you sensitivity sort the all it in could to be X% order on I'm back by claim,

Jack McGarry

non-discounted care, of we important be a haven't really Yeah, element to look continue basis, the long-term rates analysis. a you and can't length Interest it tried. will that at given from of

Robert Glasspiegel

I got you. Thank you.

Richard McKenney

Bob. Thanks,

Operator

take ahead. & Woods. question go Keefe, from a now Krueger of Bruyette, We Please Ryan

Richard McKenney

Good morning, Ryan.

Ryan Krueger

Hi, good morning.

for other factors? RBC do Just an tax reform estimate ones, yearend have contemplating ratio, and two your quick you

Richard McKenney

factors, as tax of impact disability, has Yeah. it Actually, as of the long-term out, played have some care and reform risk changed - changes we not insurance been to was. have the as factors related once thought the dramatic particularly

And end of to the in year range. so, kind expect XXX we XXX, that would

Ryan Krueger

long-term And Thanks. do what cash typically to assume when capital care? plans, annual you then, contribution you your derive for

Jack McGarry

$XXX So tended annual it $XXX to cash be range. contributions million is have in - to that million

Ryan Krueger

Thank great. you. Okay,

Richard McKenney

Thanks, Ryan.

Operator

As - ahead. a RBC Mark question, Dwelle reminder we will to Capital of now move will Markets. our go which Please next from come

Mark Dwelle

Thanks Hey, for the open. good morning. questions keeping

that Just something to of kind as the the reserve should the to mean, different I - really to the questions. response said we a point see or number? an you had contemplated adjustments confidence range as kind think meant level XX% there, there we we is $XXX of high-end of actuarial expressed are million contemplate there range, of of the is so way in normally when a of one guidance prior of actuarial clarification,

Richard McKenney

Yeah, so recognition. loss in we're again,

best So anything we to going with are estimate. reflect assumptions our reserve do

the We that there, what be just XX-XX of we know The of we put emergence we could doing either it's on expect. the right is go which to between high-end that. as call we But set. that, side haven't information $XXX would X like somewhere you now, $XXX that. an and to can't finalized would and saying Actual It's get that work we still assumption range. give isn't So that as now. fall kind going finalize you of after-tax, working hard out number possible. a million number can actuarial we And we're to when in actually believe are that as as possibly we we soon the

Mark Dwelle

considerably number at starting just a that's automatically point. and million needle in assume So is that the We lower $XXX theoretically it's fair goes shouldn't to least that play. still the

Richard McKenney

ask indulge I earlier, I it top. again, would wouldn't assume said your But, me just that the to I As patience. to goes with you

Mark Dwelle

Okay, thank helpful. That's you.

Richard McKenney

Thanks, Mark.

Operator

questions, further any today over there would closing are turn or to no the host currently I back As additional call like remarks. for your to

Richard McKenney

did of we're And the thank questions bit. time Bettina. working got for a the a a on. dimensions Yeah, little good the hopefully, thanks, out think just talking of what you and actually everybody I about extending Jack of would I and nice sense still job taking

that do we get we'll so, And through the year. as

weeks. Thanks, over our a to all And to our second quarter the the through then of you be will next process. quarter working call. We in we look we all at number and seeing everyone. of insurance talking you conferences, That out forward have meetings, several third market, there for That's earnings investor today. completes

Operator

conference you Thank gentlemen, and for that participation. will Ladies conclude call. today's your

disconnect. now may You

Unum (UNM) 31 Jul 182018 Q2 Earnings call transcript