UNM - Earnings call transcript Q1 2024

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Operator

Thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Unum Group First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Matt Royal, Head of Investor Relations. Matt, you may begin your conference.

J. Royal

good everyone. and Christa, you, morning to Thank Welcome Group's First Earnings Call. Quarter XXXX to Unum

to today's cause include our SEC uncertainties of call actual that statements. with obligated note Please may the of any and actual are and are results. that differ these to factors our to materially, filings update results, refer from forward-looking description subject risks release expected differ for and to results a may Please we could not earnings which and statements periodic

afternoon, released non-GAAP and directly most section a may measures financial on Yesterday Unum earnings with our press today's any the Investors financial be comparable included first in release GAAP the of quarter along of materials our measures website, supplement. and presentation. Those presentation of found reconciliations

core Financial Steve to for Participating currency constant sales and Unum's President Group Rick operations, on Unum Colonial Chris our including Mark CEO International. and conference are Benefits; voluntary and of Arnold, basis. presented are Life benefit Unum Till, Pyne call Officer, today lines; CEO, made Zabel; Chief References Tim International, who a heads in and morning's this premium, McKenney;

Now over call turn Rick. to I'll the

Richard McKenney

Good today. you, our morning, the years. achieved thank Thank you, and continuation strong year to a several reflect joining exceptional over past us of start success and Matt. a for We're first you which quarter everyone, the with discuss excited results to the

eliminating our further higher laid in our build maintain out grow momentum plans we industry-leading Block. expectations capital and to a flexibility, for meeting XXXX, rate line continue outlook ability Closed through January, at top our our At our our needs to including including and margins,

targets. earnings plans in increase XX.X% and the our company. capital well million quarter of excess on statutory operations metrics our execute in to with of $XXX level premium in a results EPS first to ability per share, $X.XX of core earnings, growth Our for X.X% a record growth show these

Coupled continues our and and team's economic environment our with market business. the favorable backdrop be of to strong performance, supportive

concluded job steady note quarter in base, evident role an growth more typical expectations a our with first positive levels. sustained a was wages. in and in observe our in played we This natural the client for existing economy rise ongoing success, although that as on surpassing The growth March at

an Our offerings, part important have which the talent protections employment in of critical are retaining providing a attracting holistic of and package employer's their role employees. for also

is clients them. these leave our our with including Our employers interactions with quality unparalleled services, through administration, digital playing connection which amplified has important and an role to provide been for ability

In longer consensus addition are points money for so above to With our long-term the our also beneficial continue of both labor our the and we in care. far market, current to yield, invest been scenario. higher towards shifted portfolio rate for approximately up XX interest yields lines to business rates core year, treasury but as have levels basis this has favor new

us X businesses. in, all derisk solid utilized continue profitable and the first across quarter. of through consistently, aids macro our this in on and find hedging repositioning, Together, the we steadily returns strong foundation to ways and strategy further We our to our backdrop growth levers and building block delivering

quarter. franchise, spots highlight numerous there to in first the across were Looking bright the

of First, our continue Leave group products and improve deeply HR to in clients. such Total our Unum Connect employer US, integrated operations solutions our as the

work. our across our of see attractive consistency margins product and helping based employees get pricing the back to on sets to discipline goals continue of We aligned our

value the for expectations performed than the meet Group we are expectations and our we our expected over our are our resonating services services. quarter, competition as employees and sales product XX haven't in to families find XX%, see customers, exceeding results where group shown in and the by disability price years. persistency better with at total year. employers, products and level products XX% in long-term underscore most Our with their a seen the These

and Also strong individual growth of and within to our dental multi-life U.S. X.X% produce continue business, at our supplementary line vision levels XX.X%, and voluntary both including top voluntary very bottom respectively. and disability lines, line and benefits,

these levels attract receive well less a of and highly their attention, in employers our talent look retain While to group offerings as lines competitive cash they business market. complement and expand and high generate of offering benefit

an Since And Life. been impacted in XX%. has Shifting the to X%. which increase for to this saw ROE main quarter, we by of Colonial segment. model, over the growth pandemic, just premiums with be continue Margins Colonial's the excellent distribution nearly focus

While first we're the meet encouraged not did expectations. by the in quarter premium our growth, sales

XX%, like Despite our year. out last outlook meeting. year our in Rounding our services Gathr of well an at growth underlying XX coming core nearly segments, ongoing range strength sales our our agents. is International as plans And regarding to reach this, to premium growth excellent optimism the with of business These full productivity the we XX% X% the earnings at mid- factors through as to off robust range. support sales upper differentiation our operating million-pound maintain U.K.

market-leading innovation, see growth Poland Unum, and in relationship and to standard our that management management the company, momentum capital to our continue excellent remains prudent shareholder we Across business. redefine the to experience, growing commitment U.K., unwavering. broker the setting enhancing returns is our continue And We in model. a distinctly

our we With in expected as generation the to is the year long-term be model at care. first strength not this contribute that Closed Block years to fully capital full many do is capital funded,

that going meeting. In strong GAAP long-term capital to $X.X Let at million. me statutory of the to billion care of $XXX the we mentioned our disability outlook and highlighted I translated you that we directly earnings the first and earlier, remind plan our do outlined protection approximately quarter, not block life margins, to by assumptions forward, given contribute support

as focused supported sole generation focus our deployment flow cash supports on have benefits. for This rate at employee and a well than is This by long-term we available flow consistent run as approach before. seen our disciplined cash greater underwriting

good we grow provides as and explore we $X.X company of Block quarter core Closed these to businesses the results, With with flexibility RBC XXX%. of reduce exposure. additional opportunities and liquidity ended holding billion our This our

At same the at pace capital we the shareholders. steadily return time, we which to increased have

This quarter, per to approximately double $XXX from pace repurchases share the of a million increased we ago. year, year

increasing addition, and third announce by XX%. ratio In position capital we're of important XXXX, placing shareholder increases our XX%, we to dividend our and consistent in annual strong starting will payout our are part with another pleased recognition dividend payment quarter of dividend management. capital And dividend in be around a our projections, right that

thanks attention. Steve to Many as again outlook was each insights very work now and reach strong for macro hard Closed we over trends the as All provide to to as our first positions into teams seeing throughout operations aspirations hand our quarter you us receiving All financial and our Block. encouraged by serve the it environment. company. start beyond. XXXX into our well our are customers day. I'd We're to well once provide our your to support Thank the from a in well we're be all, as financial our to strategy to and the for this that insight further like able execute and in every the strategy on

it Let me turn to over Steve.

Steven Zabel

Great. morning, Thanks, Rick, and good everyone.

a to the quarter the first strong described, Rick start very year. was As

would the I trends across few businesses. details, the into the are impressive like that key to our driving getting highlight of a results Before

in growth First, group levels bolstered growth we're International. lines record high the core premium of by seeing Unum growth our perspective, from X.X%, operations persistency of line top levels nearly in with premium and XX% our of for

continue our XXXX. group levels robust growth, to In the exceptional to with benefit disability, maintaining addition margins produced be ratio in

continuing as trends care Putting us power all expected. AD&D Group and at normalize together, allow and since earnings pre-pandemic, grow to not to Life and company's further seen these financial levels our the it earnings long-term flexibility. benefits

operating adjusted adjusted grew to representing X.X% earnings share growth earnings we XX.X%. quarter, leading operating the after-tax million, $X.XX, to $XXX.X of per of In

$XXX.X side, the RBC up holding operating to capital with was liquidity our driving targets. strength excess On well further a in and after-tax company million, of statutory XX.X% income

backdrop, quarter X Adjusted our of year, million first $XXX.X XXXX, increased quarter in segment to quarter income the factors first the financial the targets of executing in reinforce into XXXX. US. the results. that all in operating with now to against of are we Considering these million XX.X% I'll Starting While our for Unum XXXX. compared only $XXX.X confidence move to

US. growth for X.X% with leading product and of improved supported all our levels greatest lines mortality and XX.X% Results more ratio. premium normal of returned lives favorable of the seeing X%, wages of total benefit in year-over-year lines XX.X%, group persistency Group by growth with and approximately along improvement Natural Unum to a AD&D Life to trends, driven

XXXX, approximately not or our and the US Unum quarter X%. the in sales while Overall, supplemental to sales by quarter voluntary million first meet year-over-year. and compared increased down sales first XXXX did were lines lower of of and $X.X Group were expectations X.X% X%

As another favorable the reported XXXX, to $XXX.X sales driven first by of meet quarter robust with better Rick million, expected $XXX.X the the line expectations in million in mentioned, to quarter than of operating and disability incidents. our group are paid The adjusted expectations increase year. income quarter with group performed the for compared

million US $XX.X Along and benefit for disability XXXX. year the was quarter with a the first to adjusted in the quarter ago. for with compared AD&D ratio consistently XX% $XX.X compared first of also the ago improved group year Unum to first in quarter, the recoveries, the to million income of compared strong of XXXX, Life performance in XX.X% operating same Results Group period in period

operating the XX% As incidents. benefits US increase does of by mentioned, to supplemental an of and increased experienced XX.X%. in quarter in few mid-XX% million, the of quarters. all improved The ratios the to favorability quarter XXXX coming XX.X%, The $XXX.X change the million voluntary first driven benefit by from quarter driven experienced the in lines across Adjusted expectations in year-over-year first increase low earnings of our is lines. underlying benefit decreased $XXX.X for compared the not to ratio XXXX, to lower Unum

International. quarter to in million $XX.X business to XX.X the Adjusted benefit to XX first inflation. lower in quarter the the first operating operating XXXX million GBP in income Unum first million compared Unum XXXX. the $XX.X to moving quarter GBP to Adjusted for the first decreased from income due of Then in of UK from quarter decreased million

removing XX expect underlying as has positive but inflationary strength still upper to the we earn XXXX, after subsides. million now mid- year-over-year. continued Unum earnings the direct quarter per XX% U.K. benefits, significantly grew range the GBP and to in of lower business to were grow, which first inflation the over quarter earnings Unum UK's in

offset our segments, strong decreased other sales both XX% including quarter. excess by to Unum segment for International XX% and income increased UK. growth to the persistency Unum XX.X% Similar in in Unum year-over-year, Poland Premium in business UK in helped of

Next, XXXX. to adjusted the Colonial $XXX.X operating million quarter to quarter increased segment for $XX.X in first the million the in Life of income compared first

at ago than was our LTC in due of on a the Earnings in alternative income results healthy quarter to an to points was with and Premium achieved the X.X%, from a projections, Block decreased $XX.X annualized were of period. inception, expectations to our X.X% XXX million driven Since compared than XXXX greater persistency has that year quarter long-term long-term grew portfolio be our quarter's of period of experience. growth basis the full relatively alternative growth X.X%. or yielding XX.X% $XX.X rate Closed volatile claims compared last first can prior million of X% higher our assets year million Premium to rate year. basis, period of first In diversified higher $XXX XX%. of segment, million below returns consistent period. but sales of by adjusted expectations match to X.X% Sales prior the income operating $XXX.X

As we inventory remain as elevated LTC January, XXXX incidents claim expect the we discussed to in in normalizes.

in in incidents continues LTC pattern to primarily quarter our of expectations, year XXXX. elevated first XXXX, than believe of result inventory to The XX.X% assumption same first in the third update XX.X% compared ratio the the of quarter the was net ago indicate we the period, premium the the While to trend was returning recent quarter due experienced normal a higher levels. in LTC long-term to

of first quarter a NPR the to fourth the impact the case due of increased points the in primarily Sequentially, XX basis to quarter. compared large termination XXXX,

our and strategy, of the footprint to continue Closed focusing creating execute on value, outcomes. on Block we increasing predictability reducing Finally,

As includes we January, increases. justified discussed actuarially this seeking in rate

in of refresh the XXXX, XXXX. we program our XX% of have the first Since including the third approximately target, X% approximately quarter quarter in achieved of

to the retirement results, So quarter then my allocated million, primarily loss net plan expenses. the wrapping a the was adjusted income first of in investment compared by lower operating $XX.X on driven and segment's higher $XX.X XXXX, million up Corporate in commentary financial segment the loss

remainder segment million the driven of year expectation then in is the consistent the expectation the that losses Our rate of quarter amended of stay year mid-$XX tax Corporate XX%, to for the our relatively of will favorable in effective first returns. XX.X% onetime And in filings by the lastly, range. prior XX.X% to was

now Moving investments. to

good see and environment in higher net to quarter first at prior and asset risk levels in $XXX.X primarily Total management. for income. our money the which quarter. Purchases miscellaneous yield, portfolio in was made again year, compared to X.XX% a continue first yields We investment were levels million the quarter, $XXX.X by million income investment higher driven the new above in earned was the

to a with $XX.X first in increased compared alternative $XX.X income from investment income quarter assets our million million totaling to ago, $XX.X year million. Miscellaneous the

interest to first last our the expanding hedge $X.X $XXX repositioning addition, entered continued rate assets, of inception million million, of of and repositioned million quarter we've respectively, program in In Since XXXX. billion forwards our programs. risk including and of $XXX by $XX the into we year, manage and treasury

my our on with capital position. commentary update an this I'll end morning

year laid company. generation flow to in outlook As of this cash call, profile our out the the in an point project inflection we free be

strong financial is earnings in LTC statutory strength Our no outlook for capital drive contributions significant XXXX. expected with to to flexibility and

a first to quarter, start. off the Through we're great

to quarter our repositioning income $XXX.X for year. GAAP -- strong positioning leading statutory and the of the $X.X and margins our With to for billion discussed well expectation $X.X in the operating billion million us after-tax in results,

earnings, our to statutory billion. capital liquidity strong further these ratio traditional risk-based approximately and holding With the robust average strengthened weighted at for company insurance U.S. XXX% remained companies $X.X

This company expect expected capital XXX% throughout XXXX over quarter. shareholder our of rate do increase $X effective XX% providing share our optionality metrics greater While both year-end liquidity run we levels $XXX the to considers to increasing to optionality. the shareholder by already by excess fluctuate our RBC of XXX% billion, of return both long-term of doubling plans in to targets, year, and holding our with these in capital than are million dividend and third us repurchase well

of So to targets. very pleased first will with the our us we and then we throughout deliver we The capital to progress in line the best looking results. to excess priorities. ahead, as our up year our continue our year, quarter the start Overall, sets financial are execute evaluate use strategy strong with well on our against

Now I'll the Rick questions. your his turn I for to comments, closing and to forward back call look

Richard McKenney

you, Thank Steve. Great.

combined There hear our the You business ahead. we strength promising discuss for our as quarter, certainly capital to trajectory today. to comments the set the of wrap in on year us can performance, with are excitement topics plenty first a robust

the So questions over over with facilitate to session. the to the me that, call and Christa, you, to it let turn turn

Operator

with KBW. Ryan from comes question first Krueger Your Instructions] [Operator

Ryan Krueger

question group. on of favorable within And seems for at My there's kind point. in like debate is really competitive saw guess the first environment you a specifically, industry this It persistency. environment on some maybe the you the I pricing

level So of competition. debate it like need in just to the indicate, I back less is guess, the seems environment hoping the of But group get kind would give competitive what some on like disability. I more some that and perspective to the on outperformance guess,

Richard McKenney

enter it's into We're debate. Rick. that to Ryan, happy

competitive the I there, think out when competitive you always think is it of environment market. a

I start with so And that. I'd think

decisions what competition, a to and been at going and we at we've around very basis, looks make pricing And case-by-case our we look fundamentals think consistent when on it like. our of look front. expect it the on about So that we're

we has that been consistent. discipline show The

think I unwavering. that's

side you a our I mix. pretty coming we on pricing look with results persistency happy think that as very our when overall, at powerful that group you well and profitability, it's in levels, the we're with bring the as have results together and sales the

But Chris that about competitive let on more details we're what some over seeing to me to it talk in maybe space. turn

Christopher Pyne

to stay. for marketplace We're here lot and Competitive Thanks, for regard. Yes. No of respect is have in environment used question. Thanks the to that that Rick. the Ryan. question, a

challenges continue conversation move the we customers away we things the address of facing, big Price employer important. price. to does serious One that that as is are our is see from always

ways the But our for direction, that like very talk to we HR the as talk enhance leaves platform able connecting heard to addressing capabilities we're These of their business. about to and ecosystem and in conversation is move business. help we from HR choice, price, the Total market take good about which That's could our And you happening. continues topics mentioned, Connect. Leave into away pure Rick again,

that with we of do DNA will that continue. that of new strong the organization through how have and had so claims to kind deepened both perform company. out about continues our in that disciplined give conversations put we've in will just tradition strong Couple us reacquisition That's business that to renewals. our have exceptionally I our on than can pure call a their rather price. enhance position underwriting. business with to this we And returns, them well, That to And help customers

Ryan Krueger

there's you path care, seeing I -- on long-term suggests you on you're give in the a normal there? -- that then towards you're there's some the mentioned to color returning trend incidents guess, more incidents. Can on And that Steve, what

Steven Zabel

elevated we levels. Yes, We incidents the been did half plus. the over last still the just last where we've of at latter Yes, have although elevated I year that that messages reiterate see given abate been Ryan, really few last Steve. it's seeing year, to quarters would start really the for

a we thought then XXXX. as you'll quarter, see that continue And we bit way claim to underwriting little abate XXXX And what expected. higher first work bit message mortality Normally we our than an in a really margin what through and other is maybe down we netted get the really would to That saw. saw. is that into would Those instance, little us -- the we higher have we much pretty quarters. that

little trended Ryan, inventory this concept regression the inventory over our that talked what prior that overall consistent I've trended line the has COVID to about bit lower fact time and back incidents continues. is that we a really seen I we've also of saw in during claim that regression say trend our with how during would claim claim that line below as The and time. quarters. pretty

message our the same. much pretty So is

We stay have I would XXXX. time it think plays it trends kind remainder with of that we will still some first But just the of to how see happy through for the quarter. we'll Again, year. elevated out are in in we the saw say the

Operator

Your question next Elyse of the Greenspan Wells comes with Fargo. line from

Elyse Greenspan

are one X maybe Closed expectations normal to My first year on question, quick you your business, for income that full investment When Block. the back earnings for quarters a year? get assuming the will affirm of guys the the target you alternative other

Steven Zabel

our Steve. to to X% it have in Good we kind that our are year. answer yes, at simplest for is but And guidance yield that the into we question. set Yes, XX% the quarter, that the the portfolio, X.X% right we when do we Elyse, around set expectations, around planning incorporated alternative first it's thinking of asset that

Elyse Greenspan

you voluntary when expectations hit meet you sales quarter, over the look target? the point did then how growth to the to there the full balance and affirm And sales guys see trending supplementary sales Unum X% quarters that in target. the And out didn't year you do you X of XX% US first

Richard McKenney

Yes.

a little little talk we business just our than a of about, And we about areas out coming in have of although talk the what would expected did our bit the some expectations. bit gates. are slower Let me were

up We to the that year. over are course make of looking the

still we to where so feel It's some And get are. targets about there. take work good our sales going to

actually around wouldn't highlight But particular voluntary side. benefits underlying I that the anything in

back work target that is quarter-by-quarter of one to and getting that's kind to really think on important I we us.

Operator

Kamath Suneet Jefferies. comes question with from next Your

Suneet Kamath

path you I saw continuation a beat about wanted it over And have talk last year? ratio Or benefit drivers I group that what expectations. ratio bit better-than-expected of changed year? Can the start normal. benefit continues to in ratio. little the underlying to disability you kind past a to the with of it sort is the of glide the of mean

Steven Zabel

it with pricing the this answer start in to Steve. environment. Yes, I'll to and bit over is a Chris the little turn there talk then about

whether disability So recovery. how or the addressed really -- it's One performance drivers. X just group is incidence we've around is there's underlying claims claims claims

piece performance. potential other possible and you the reflect to the down or take pricing line then pricing And is that what actions

really objective company. do start recovery performance. good working well continued That's of as We've employers see claims with back So what to customers both department patterns. work. That's I'll the to as as our with the really to people a well really our shared get we

little So XXs We I'll in the been pretty have the trends that incidence first in have consistent have year. say benefit the been our what guided the first recovery would low to quarter. from favorable a a in been the for was expectations quarter. might ratio

that. This below I that was favorable incidents. of say a was claims little would bit quarter because And

think the disability around year. So block performance the I see We areas. seeing do feel trends of would for of and the We're in that's disability can of comfortable with long-term short-term we those kind we both of backlogs sustained remainder say sustainable? do.

sticking performance good low So XXs. just in would from feel that with the operating be guidance perspective, an the about

pricing would a how the to other pricing. just maybe of incorporate that think of pricing. about And talk disability piece little Then about that is with do we And performance? we equation, group anything level though, Chris, bit

Christopher Pyne

a lot have is that disability can employer our Suneet, a Steve, extend part does disability Again, the and for coverage, as phenomenal, back the us bundle, short-term insurance it we're strong able Thanks, get our of capabilities long-term -- to first, flexibility. question. talk gives and where to customers about to portfolio, of Yes. we we

we're giving that partner those conversations almost employees, enables employer to great that being starting Couple that long for solve us always the while with their and go solution critical employees -- about term to leave about to have this the Leave cover. and to you're start how a to you topic really talk and part going of be their together, challenging

Pricing-wise, like their in stability price. people long-term

you experience seems claim a in of excellent about you how keeps renewal start that management over through check resonate So to this That to very well. can kind time. and talk effective strategy maintain prices

So it's combination leave fits a stability portfolio of bundled long-term that with well very our pricing DNA. in management with underwriting and

Suneet Kamath

sense. makes for I That care. Okay. then second long-term And Rick on the one guess

One observed of transfer of things combination of the side in have types we the that risk the asset-intensive market is different order particularly just get risks, done. in on to the insurance

IDI your of think wouldn't that you would post to And business, were you couple about sort combining that curious ton read years if blocks stuff, of asset-intensive but have I how individual right if the risk that's a a or of solution of just transfer something? you ago, different think do

Richard McKenney

Yes.

So in blocks of you business. talked about our of terms asset intensity

asset-intensive and We're transaction. go that is care some comments why one had was through business, current to happy IDI good that. of our the the rate about the Long-term that's other being us. environment that for clearly So made we

is to job doing business. block behind team putting great a Our money work of of that

then little although course the bit side, group voluntary on benefits business terms inventory kind claim shrunk of then lines the our well. the the of on And portfolio as asset intensity. asset goes a disability, in group down of you think And has has little very throughout the shrunk there really business. And intensity about that as the of

it think -- that is mix. our risks, in then asset question at want look Steve, and making and it and kind getting sure your trying doing about if what -- today our how what the where to have that we is insurance to think between add that we're the I do asset today that? where about to overall mix do when So we there we're long-term hedging But care at of we we're we're happy looks you overall.

Steven Zabel

businesses and I maybe have think transaction. you potential bit -- been Yes. in bucket I to pair might different long-term up care around put with just businesses a a is I that transactions I that And could mean, go getting with just you that. wouldn't asset-intensive little just wouldn't at that

at are diversification just generally. I risk think counterparties looking

we counterparties. do would different criteria so that, think, And match have with I that blocks

Operator

ISI. Your of with comes the Tom question line Evercore next Gallagher from

Thomas Gallagher

remain A few have is, do so year, the care. Steve, GAAP elevated somewhat heard, the long-term is follow-ups claim on long-term guess If I to course your care you'd trends. of it I about strengthen one GAAP. reserves throughout not something likely again first pretty comment adjusted they that my question. depend just the third long-term was in even necessarily? be assume or a quarter on bulletproof I there if should review And though, really assumption? That's statutory first Does for

Steven Zabel

perspective, count required on LDTI, an we quarter the assumption Yes. and We normally do about are think there Yes, annual will our one. under in you're basis questions I'll X think we that that's set in I Tom, GAAP there, as a of like but from I it all thinking it third do. right. look at

more term set a assumptions at and long long about experience set pretty look when We those think we them.

all account the the the review take we GAAP we've over into experience last seen recent but did in pretty through last we've do on account basis. we'll experience also will quarter So we a but into year, seen, And the elevated a that third we'll that go comprehensive year. that take claims process

of best of along view for set best the some recorded behind the do reserves our the the the of economic or part like statutory difference LTC a we just buffer that estimate side, quite a on feel margin about basis, had on the to our really excess estimate statutory deviation have where in bit and between is talked we our outlook kind we refer $X.X then adverse we a that of meeting we of I have assumption back capital billion of discussion line. would which as protection, our And with

as pretty for of best sensitivities to feel of part just in we in any you good estimate. January. that gave buffers even any that I'd our our there to refer continue or got the deviation we in experience we the back presentation right back So some that deviation actual

Thomas Gallagher

just then disability a Did you group group case quarter that LTC life with And the large the care along that? the that lose you. long-term coverage? the in for you and just follow-up. discontinue had The Got benefit ratio. the lapse for Or did employer impacted

Steven Zabel

That impacted group the just have LTC was terminated one itself. margin the did coverage. benefit LTC net into was it. a large was other and that premium that lose ratio in our margin It We We coverages. it And the did that not basically, ratio Yes. case specific buffered released clarification. to

Thomas Gallagher

I of there mean, LTC an coverage, of to you out kind positive than curiosity, the do at -- voluntary? -- considered. probably lapsing to is group effort that employers that Or there all things at me, is just more Is Unum? that if was have Is level, negative that just

Steven Zabel

I is I about positive various I our them voluntary a always comment risk mean products We're a not. services. or think would groups which the is value always through it's our thing. on whether and talking to it's Yes. wouldn't of book, LTC say providing What I to in reduction

Operator

Joel from & comes Dowling with Hurwitz Partners. question next Your

Joel Hurwitz

business. with now HR earlier capability I can Total -- on a of you I question the just like about on those persistency with Chris, follow I is wanted or Ryan's business to major persistency. though driver Leave of talk up product? or commentary getting retaining new your business on the heard capabilities Connect guess some your

Christopher Pyne

of over question, also time. with engaging the capabilities, Joel. changes an employer. the No conversation Yes. prospect question Thanks again, stage relationship changes it in for the the It

we talking for So customers up price down. need appropriate what we're about to consistently or

drive there's management lead the in, long-term of context we're a to Connect, toward in done ecosystem or that participating just partnerships. you when can tell HR But lean

mature Connect, increase HR this that's a when to at a persistency offering point. like So capability tied does you're

We've terms platforms other customers and in. X over been choose of Workforce who Workday multiple platform, with that years years for partnering in like Now,

So are favorable other And we bundle to get add about discussion long-term on can stability. we as as focuses retention. the what products well that that price seeing we that excited again,

much is your on detail getting I the without of on specific spot So think too theme question numbers. into

Richard McKenney

multifaceted. I It's would getting. Joel, that, it's is I think Chris add just

where with come seen, come the that the those it's to into that all persistency was, So pricing, those back management. it levels that really you highest play. We're like does in but relationship relationship said, the management, happy we've all pieces, things ongoing relationship connections,

Joel Hurwitz

And switching year? technology more color from about recruit and you provide to the And the that you X% can Can gives this productivity and target achieve seeing you're Makes Life. Colonial sense. you what on then maybe growth sales talk Okay. to confidence Gathr a XX% over some what that standpoint?

Timothy Arnold

Joel. Thanks, question. Tim is This appreciate I Yes. Arnold. the

to quarter growth So in this, premium like overall X.X% reiterate versus Rick year. the but last mentioned X.X% that was just I'd

pleased we're So that. with

of to it's can is, at aware for may no available mentioned You management cost capital the administration benefits market, of an that it what the and be we platform a employer. not just Gathr, small make human especially those who in end

third-party employees a fewer with we've seen of independent that than benefits XX% And do data technology employers XXX suggests not that platform. have about enabled

So administration -- benefits or technology-enabled platform.

in saw great So that growth XXXX. quarter, very we're there. saw rates Gathr the offering excited the first about We in adoption we continuing growth strong our proprietary of in

solutions. marketplace Another capability cross-brand currently that's that in we the have is our resonating

So in products Unum we're to XX%, and a are increase those the products now. Colonial agents peers Life US at our who saw those grow access quarter, employer Group group saw partnering XX% selling paid with and to Unum products. at Colonial we the we at agents premium In have from Life

lower So range of that's that sort the think we where and end on reenrollments our And that to that that -- into will enable us the was softness Investor get existing gave at addressed in we quarter that's be clients. the can back of saw of we something Day. the

Operator

line of question the Bhullar Your comes JPMorgan. with Jimmy next from

Jamminder Bhullar

just the on lines But you to your now if long-term you that, reserves had incidents, enough assumed is mentioned are along charge elevated around been in levels? well. previously right on as the what's the care but asked even question not variability recent it stays predicated an incidents? cause and of first, incidents in a So improvement Or

Steven Zabel

over the the through I'd made our at all our Jimmy, third back statements Yes. and process our that quarter. in normal just We'll I look term. at the sets of annual go to We'll assumption we'll long look before. process, go

of comment wouldn't trends kind quarter. a that I individual on we're certain So in any seeing

pretty did of the in We'll take through, review a that we back when third last go and go of comprehensive just a through view year. quarter long-term we

I recently, we'll it's think but into we've So take really to seeing what been more premature account that. discuss

Jamminder Bhullar

amount -- realize a you've And this decent the on amount increased buybacks, Okay. year. then I

generation, suggests the doing. if your You're you're liquidity stat well. flexibility it RBC look raising income levels, But holdco dividend we to have the than as then at and that you what do more

it's it of if there year? and in later this to you results the might the that set you'll on you'll that is Or sort the is review upside year, So a stone continue your of do next possibility that that sort number year? million $XXX surprise revisit and this

Richard McKenney

a good Jimmy. It's question, Yes.

reiterated, you generation, with when generation I year, And so we a both very think happy from both how the the overall think I perspective. Steve about and started capital

important long-term it's that there's I years care. And previous different been is will going a think towards in than use not be

see I now, is what in So in put so as we about and a going we're there. quarter, we cash, our company grow, particularly be out using. we're terms that holding us for to the outlook that's talked first saw we Right to generate meeting, trend of in seeing, the capital levels

the increased we're redeployment happy shareholders, million. capital of the We've about to so and pace of $XXX

that You in is locked stone. asked,

managed that on to I a capital daily something is needs be think basis.

happy to keep so have plans. back in obviously And our what those to go plans we looking I'd quarter grow. with uses, execution and very towards the at we place want like looks But the that. first the we'll still that on we're

organic have, of at we growing at terms and in both returns the the perspective. we business from have, So that's rates the foremost, an first

side, business. we'd of that to grow M&A continue bring about And to on like capabilities the that we've the talked types core on to then

had We're sense. in a we some can had of but than what first you gives of message in it tracking its lot quarter, probably frequently terms about that uses be. capital, as different So we think the we not think we about

today. with in are So where stone. very nothing happy We're locked we

Jamminder Bhullar

that for earnings forward for a going Okay. is slight the headwind of And LTC then to case lapse the fair assume that division?

Steven Zabel

Yes. for a impact large material It's really immaterial period, ongoing but for earnings. It not earnings. the was of in kind

Operator

the line comes question James. next Wilma of Your with Burdis Raymond from

Wilma Jackson Burdis

the RBC for capital year? about trajectory strong quarter. remainder generation earnings Could and the talk deployment the were just the you stat of in

Steven Zabel

really given can Steve. not with Wilma, I ranges at take would I that. that that one. say consistent we changing Investor is Day. the of this We're view Yes, our would have very

happy that expectations are strong, little results above a started our been. were bit first would we We off have and I say would what quarter

But guidance or or trajectories don't the need trajectories metrics. GAAP earnings to at earnings relevant the any the change of statutory capital for this really feel point, either like

Wilma Jackson Burdis

benefits you're Okay. in good $XX figure of much about inflation And there. a run little million seeing earnings is talk by how that And International U.K. a and what rate? bit boosted was

Richard McKenney

do want that? to about you Mark, talk

Mark Till

mean that now continue disappeared. Yes, that we currency, in sort we've it's we of terms impact, inflation or range. the I'll of GBP a at and million we year $X that. we local about earnings of the million to in largely And $X the this million put can in XX a I if reduction then to million produce take us GBP and range the in seen quarter, of produced for quarter, think look XX

largely, year, amount there's a the but of it's of continue now. the will out inflation So that way through small

Steven Zabel

is something inflation probably other the that, minimal. think that's way quarter was about current sustainable the pretty the of Probably is performance for the impact to Wilma, because

Operator

comes line next Mike of Citi. Your Ward the question with from

Michael Ward

any product across of about think for between what pricing more Maybe Chris, the key to lines? if but benefits employer seeing you're just different Trying sense you curious sizes. have

Christopher Pyne

Good question. Mike. Thanks, Yes.

a angles of to Everybody price sensitive. less think make on probably plays. a on decision. a is bit end you all market eye into get the sharp is feel the and That across it I When mid trying little a probably we of good market. little price large, said, more do small how that there's the

It to that and strategy at segments, a We to consistent the gets large. offering price. That's we renew get get small, conversation, there price. it specific When ways. a view different us and us market helps fair helps for just across. bring medium a back It fair in

again, you're market, talking about So HR management, leave talking Connect. about heavily up you're heavily

different end of about And Unum less couple gets or because My ways little a Down of terms market, the a choice it's in group that problem. insurance offering bit ben of that in Gathr different do connecting of a market. Tim with where admins we that of Gathr price our some up, solving shows sensitive that the can a in talked type our with you're platform, small things

Michael Ward

think it is Or was it management you you But maybe unique. Closed thought suggests bit risk could as really we that And that? then of sort one -- that little if LTC? on Steve, tool just about your a one last just But we the because before of Block confirm hadn't guess it a I termination should for tone one-off. like

Steven Zabel

to Yes, to in we way. I our always would conversations, value they all one-off. And lines to want decides some provide a Mike, consider we're move product customer different across those just about the it them. customers Again, talking can the of

what this so with And happened group. that's

Operator

question Your Autonomous from Wes with the comes Research. next of line Carmichael

Wesley Carmichael

LTC the quarter, group follow it the was premium profitable Just correctly, it overall on reducing sure driver I It the block. positive, that in want in make thinking up was net is case that is thing exposure? the in increase I bit that think overall but this block it off thing? guess to Steve, which wanted it lots. the Or of risk your to sounds little is like ratio commentary overall? relative the just a I a about is this good to Is a I'm worse bad implies

Steven Zabel

our a to impact it's basis points. I just not that's I drove would Yes. positive in right. so it on risk earnings. go-forward why There the MPR up you're the was feel say XX a would does one-off It's And perspective. we margin material have It and case, say reduction like for thing.

lot of X/X dates. A group are effective these cases

share. their reassessing of wallet are So HR departments kind

I'd And so consider just a thing. one-off it

Wesley Carmichael

doubling more after increase away and there's protection going on going rate contributing forward, some to talked just you rate individual the going Block looks here. with Closed it take about XXXX? but year, the of LTC, But one what's LTC square And know but previewed for to you billion not Unum basically And like $X.X I'm All right. you're filings this capital you trying I disclosed last more new America. were increases, in rate premium for policyholders that to

of need to is the did square you comments that the that state for redundant. year with idea driving experience significantly I'm said regulators away additional statutory your the trying this reserves So kind And just to are review increase. that that last rate

Steven Zabel

say, I'd What Yes. increase rate it's those different, calculated. how a as as I are construct guess, requests far totally

different That's benefit the quite has amount ratio reserve much really to lifetime bit it. ask for. our construct, in can actuarial get margin that the You of a you statutory than look to which at justified current

filing, not individual The the we've really part program. doubling is got mostly that now there. set. of incorporate those we're on the I rate able the really of current be to the say where rates specific right your what look not would same best levels It into at most on now opportunity assumption you of focus the comment right margin business you're to group is would as of I'm block increases, When estimate. not going more

comment So that I specific won't on filing.

Operator

Your Hughes next question of Truist with from comes Securities. Mark the line

Mark Hughes

multi-quarter it or this Any better. like in trend quarter? just Life It was that the Is mention mortality. Group a theme sounds to

Steven Zabel

is It No. the couple the Life AD&D, of XX%. we've fourth is below in year, last what seen ratio quarters our in last quarter and and Group interesting over Yes. loss just

just little was a it This above bit quarter, XX%.

XXs. would good very expectation my quite be. I below what the reiterated and both be our quarters continues to low in expectation comments, our in bit a So

premium our we business. the where What the that and the was in premium volatility. saw consider waiver just fourth more one-off fourth part performance more thing last of quarter expectations. at first that saw the a of played year out right performance that kind in of of quarter favorable in in we quarter waiver that around And was We

was of first say say, when close been. expectations, pretty would favorable our to the expectations I have our to if the look I'll kind core would you it mortality, then, got it and just mortality of in fourth at the quarter, we quarter, very into incidence what then was actual

why XX.X% driving we're quarter. will for be again, the it. XXXX, giving in the for think how benefit up low and price that's guidance look ratio volatility that's back And first the ratio just so mortality, then of we We, the the that's loss XXs. think what's that's And remainder in really around we if you

Mark Hughes

Was an flu easier looked data. this that Yes. at I hadn't season?

Steven Zabel

It's interesting.

look mortality of think age probably say claimants, kind saw age a in to we what it categories. season, have across just LTC fairly the older mortality. I'd was the more probably flu what we You we Life there, saw was the group is just that well. of saw book block It's but Group in kind working lower there age was as relatively and the a small regular

of volatility there. have can you a So bit

Operator

Your from with Bank question America. next of comes line the of Joshua Shanker

Joshua Shanker

periods history question and few long-term out for what full there inflation macro wage we of after Is about A employment. notable an look years? volumes happens and price as outlook a backdrop this to and in

Richard McKenney

to good a appreciate that one, that's up. Josh. I So wrap

think numbers, couple in we're employment we been good that here period years last of have I of of inflation which the that abating, seen. wage not think discussion of over and a there's lot I

think I looking a good. that. time It's long seen are very X since been actually those we've still

history go when back and we so can you different. very of period be come out And that how in

in good seen inflationary structured side, for we've would are wage at -- we that example think that that picture actually latest we've probably seen. But employment looks time. that benefits decade type on are a the the some the least think of How I it over be today good. people

And an add that. Chris, if interesting I It's don't question. anything to know you'd

term terms But we're it's think hypothetical. of nearer a looks little in focused a the probably what bit like environment good I today.

Christopher Pyne

we of attract we need talent. continued kind topic and good talent see to the packages think good retain interest And where Yes. whole benefits in I

as good utilize long we of forward. that can persists, to the employers we our as how and and how creative for we that's to And what employee terms our we bring, in it as enable be population present us ability it, look

Rick topic. still attract we saying, fact what and to major a addition like in the is retain So that was

Joshua Shanker

about what more. seen period point, have to you've post on the anything offer whatnot of there what had I be disability period or but that that that a Is your significant the might [indiscernible] local to level learn learned of growth? a boom to just happens to a or geographies trying be don't mean opportunity in happens different

Christopher Pyne

would in at good of bringing think that it's which of back a I management -- thing kind through a And play I our back say terms is claims employers are. work team terms can to of flow different attract needs and people bit with everyone. having kind are where it offering about retain is economic who the little of superior then cycles end, their the there and we for think manage factors and what will what in on

as we important. experts we add We phenomenal do as that a operationally leave space, in more job become management,

partner ability with So I to them we're our and have cycles. kind of to through to type business different help right enhance the going think of their continue customers to find

Richard McKenney

we've to go just at Josh. back you within the mean -- add what I'd last years, that, look seen. I if XX

So that we have in short-lived pretty thing. wage been inflation. That's a type

of just before we our the that, happened with held that the you pandemic, opposite of where up If a business what time. go as exact through back period model very to saw result well

last and seen in That's much where very well coming we've that sit able levels, difficult of And about a very one situations you higher XX which I through economic off through claims into where been pandemic, so then see and see is time, more times, out you where difficult we've a different we terms what today. inflationary get asking And the when premium grow worst a is you coming both, period. the good thinking years, growth. good of think to the you're very a of

where a in is are in think we strong sit really I place. And processes today position. The

good is really the as well. overall of Our is product company set structure good. The

very I'd what leave remain so And future, the in on we optimistic to of terms very we look optimistic. you that point

Operator

conclude I call closing session. our will McKenney now back question-and-answer Rick for This turn the does over comments. to

Richard McKenney

everybody to question you. that, Unum. appreciate continued in was joining wrap on. to a Thank Josh. I That your thank for and Great. morning great us We want interest this

XXXX first We optimistic beyond. are for and about and very delighted results the quarter with our outlook

to forward that, call. connecting have with a the with let's all again in very wonderful day. you conclude future. We'll near look today's so Please And

Operator

your call. This you may Thank and for concludes conference disconnect. today's participation, now you

Unum (UNM) 1 May 242024 Q1 Earnings call transcript