UNM - Earnings call transcript Q2 2024

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Operator

Thank you for standing by. My name is Mandeep, and I'll be your operator today. At this time, I'd like to welcome everyone to the Unum Group Second Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Matt Royal, Senior Vice President, Investor Relations.

You may begin.

J. Royal

Great. good everybody. and Mandeep, you, morning to Thank Welcome Group's Second Earnings Call. Quarter XXXX to Unum today's include uncertainties, call actual that note Please may are to materially. results, forward-looking subject risks differ and may which and statements we not these to any update And of are statements. obligated earnings from our periodic and expected a results. to SEC cause actual filings that of factors refer could the results for release Please with description to differ

reconciliations any Investors and includes section operation, Unum and sales Yesterday measures our a International, most found second measures GAAP core financial References which premiums, release supplement. on our of press basis. be Unum the Those released with included presentation. afternoon, in currency on along earnings today's and the of website, to of a are financial may materials quarter today presentation made presented comparable directly non-GAAP constant

conference Benefits President Financial heads Participating are Unum Voluntary and Officer, in Pyne Till, International. and CEO Zabel; of Mark CEO, Chief our Tim Steve call this Arnold, who for Group lines; Rick Life McKenney; Benefits; morning's Unum's Chris Colonial and

it me to for his turn let Now comments. Rick

Richard McKenney

second of XXXX. you, results, in everyone, into Good see thank our you Matt. into of the joining today. the half We're the to discuss the we Thank robust us first year and performance us and carrying half and XXXX excited for morning, quarter trends back

and our appreciative the done has most team efforts. over an excellent the job market purpose-driven environment change several Our we their the years, navigating last of are and in

outlook performance, our and areas saw some trends improvements notable in earnings for leading continuation to of of us we quarter, XXXX. increase the per share This multiple favorable

is benefits growth evidence far we the thus approach orientation the in markets, employee paying way Our off. XXXX and really results

while actively engaging margins. healthy industry-leading maintaining line growing existing are top in with We our customers and new

move growth year. the in we second poised a to on trajectory we continue half As are forward, the of

in confident we sustain momentum. a have our strong this foundation, initiatives are strategic set and diligent execution ability Our and to

the excited continued the for our reflecting opportunities for prospects to and building see success. for We're outlook next year,

team technologies by every our distinctive stand we remains clients here committed today, our delivering As fully is for each and day. to supported and

our on $X.XX saw earnings performance. another share, million record marking and statutory share $XXX surpassing sustained reflects per We quarter, broad-based earnings Focusing per for company. earnings level it second reaching yet the of

increase Our growth, operations X.X% and was our with metrics exceeded a in significantly top premium line healthy capital targets. core

Given XX%. growth adjusting X% from our growth robust earnings to outlook our previous results per of we're the XX% double-digit outlook, to X% and share positive full-year to

to focus exclusive consider client a bolstered This group growth are continues observed markets by over past further from positioned such factors natural stemming Consequently, base the and expansion. enhance covered increasing inherent through growth what offer we an benefits as business, we Our a wage in this cycles, on we decade. to our promising trend well growth tailwinds top various line for the our levels. employee have is landscape consistently and

more than with contributed job outlook where increases client see our our existing norm. sustained continuing view the the for consistent to the was trajectory. economy, quarter that and growth in with second The witnessed We growth reflected natural this this wage we and base,

rates Current new invest to those are to rate similar our with addition market, we to to the continue levels money and at call. portfolio our above as happy continue XX-year beneficial labor levels In be the are we where treasury for during yields. XX- prior

XX across we for movements delivering While Altogether, program the Block, in take in on to steadily able based derisk which all businesses strong exposure continue solid us rates, and on done businesses. consistently foundation we've of and hedging were the and longer-term to returns consecutive our core both our through adjust Closed our macro building we growth aids within quarters asset last our to repositioning. backdrop steps and profitable our the now

results in highlighted nature the our X.X% persistency drove the were group lighter large-case headline across products. sales of Looking strong result Unum The by premium U.S. franchise, levels. a opportunistic growth top and for line

results, However, remain XX% we were in sales group pleased full-year employee than our from achieving our with a expectations less the in segment, including margin underlying nearly X,XXX and growth confident growth perspective.

segment the recoveries Group trends disability similar experienced quarter. to another well and we persist. low as and levels, standout expect The with historical line life premium both quarter, as experience benefits strong experienced strong AD&D drove in quarter, had where another group top benefit favorable

to X% through continued to year franchise, ROE compared months Premiums sales, margins first of X [ ] an In and with of the Colonial persistency XX%. our nicely strong the quarter. be excellent first which with nearly Life rebounded grew the

our X% with another XX core U.K. out segments, International business premium strength of operating nearly and Rounding quarter earnings full growth our had robust in excess GBP at million. of underlying

U.K. and growth business the experience, the relationship management a to excellent is see setting our Unum in a enhancing growing -- Poland our in We broker momentum model. standard that and distinctively continue market-leading redefine seeing continue market-leading to

commitment management and From returns an innovation, unwavering. prudent overall shareholder remains return capital to perspective, our

As position. anticipated, is our long-term healthy in care's buffer capital a

to flexibility. capital and So strength cash generation substantial core deployment flow straight position businesses of our free a flows of

reach cash half $XXX range pace for outlook to our first ample the the is adds with million, year end of levels through capital year balance RBC of over XXX%. at a of the putting that to totaled This strong generation. sheet us top and the on earnings Statutory for

for it results. in have share these we're we level of the new with Board confidence of sustainability our Considering factors, business as the $X our pleased illustrates of authorization repurchase billion

to remain and investing organically through inorganically then priorities capital intact, our is returning shareholders businesses and and repurchases. that capital share dividends in Our

authorization, half pace will year. we which back increase but pace the such, As the the the plan be prudent to at our we in of exhaust with

is a the robust the doubling is of book the immense excluding a represents in see we authorization value which the $XXX per share, the year, This business XXXX. significant in to with entering of repurchased the as stock, to million amount testament $XX repurchase crossing our as as we position mark. AOCI, shares, well we This increased value plan of

we're positive macro the summary, the pleased supportive In operations our and environment. trends by across

The as marked positioned for per our execute and and earnings our an important period the of of achieve remain second growth. outlook quarter to well strength year. served ensuring milestone for are company to We the XX% share another XX% forward-looking, we strategy revised

for again and details. joining some me turn to it Steve Thank the let you once of for over us,

Steven Zabel

Great. Thank you, Rick, and everyone. good morning,

$X.XX from across strong per was for our quarter another As operating we good Rick company, after-tax share with as businesses. quarter benefited performance of the the adjusted very described, operating second income

per this in of on achieved that through performance, and to the compared expectations will outlook as Based to I adjusted XX% X% presented to context first share the margins improved half XX%. the continue, results. financial growth we year the the will view after-tax are additional our our segment get X% see operating to to from January we where we into margins increasing performance XXXX we've of earnings that provide our sustainability the

well the X% premium operations has seeing, premium margins our growing putting on achieve X% to the of us the range. pace into growth outlook continued also momentum great full-year quarter, core to our second in In to we're with growth X.X%, addition

Aiding benefits continued in-line and this from new natural levels sales. growth growth were a persistency, combination of of strong

we'll our we muted half goals XXXX. year the was optimistic enter growth sales this quarter, we into remain receive growth of for that the Although as second

market reason mentioned a in in industry-leading we why As the are the levels today. technology margins teams seeing high-performing Rick for differentiator his market our of healthy and and us opening, strong and are growth a are

While across quarter. we these and the invest ratios company this increased to expense continue we see to ratios decline over reflected areas expect that through expense continue heavily time, to in

happy confident in provide, are payoff with driving profitability. our future are We and they investments the will growth and

across to the let's XXXX, primarily income dive Adjusted to experience X.X% So second Unum US beginning of to million in benefits the segments, multiple quarter million US. lines. quarter Results operating above in due the $XXX.X into in operating XXXX. second finished quarterly increased year, favorable compared prior with the our segment across now of Unum $XXX.X results

disability group million. ratio $XXX.X operating of The with reported of XX.X%, line benefit quarter robust a income another adjusted driving

of lower the claim we Although the as continue million the very this has to pleased do this be than performance result strong XXXX's due $XXX.X expenses, with higher second to result of recovery quarter business sustained was continued. margins in

life. million in the second was US levels period in compared XX.X% improvement ago. to of quarter to of life for second Results $XX.X for the compared of Unum $XX.X adjusted group million decreased This second XX% ratio of operating and to The increased XXXX. compared incidence driven with group to a AD&D lower significantly the XXXX year the last year income in by quarter quarter benefit same

experience supplemental expenses The voluntary several driven XXXX. believe we $XXX.X decrease quarter underlying second We is the the a $XXX.X were lines benefits this the Adjusted and the for the segment now the voluntary a are remainder decrease favorable operating higher for quarters. second year. continue of segment. therefore, million, XX% experience the for ratio earnings And quarter and and benefit will in expecting US of million in in Unum by in from range benefits the around next

the hospital partially year's by ratio less The prior in offset This favorable indemnity disability lines. a XX% benefit by disability, recoveries. due in compared higher favorable an XX.X% primarily XX.X%, voluntary of experience was individual was of to to driven to and ago, benefit illness year the benefits XX.X% improvement than result critical ratio product

persistency. a XX.X% the trends quarterly million XX.X%, strong support growth So sales Total line year-ago $XXX.X drivers. of quarter million premium then second in more significantly of to group grew XXXX. same period sequentially in X.X% of turning were is level with of natural level historical a and from US to premium Unum norms. was maintained Unum US result $XXX.X with and which persistency compared above strong a and the

the of International, operating the operating results. year-ago was U.K. of GBP have million for quarter did in income pandemic. XXXX. Moving Unum the inflation in compared for benefits income from second the $XX.X decline million the million as second million quarter the exceptional of was in down XX.X $XX.X XX.X the second approximately to segment Adjusted second period compared quarter to million quarter Adjusted levels experienced GBP we lowest XXXX seen the $XX to in Unum since the business to UK and the

an inflationary increased million. GBP of benefits When underlying ago. performance, These including the reflect XX.X% income excess year in a XX.X% referred results nearly strong earlier, ratio strong adjusted to was to XX% removing and benefit of compared improved XX operating

X.X%, up show second XX.X%. a Unum to our Poland while year-over-year X.X%. primarily grew sales to supported continued by basis of premium driven generated international quarter, operation increasing growth, trends X.X% the UK strong of continue generate growth businesses year-over-year solid Unum growth premiums and International growth persistency. by on UK sales in The

Next, of XX.X% income the and the year-ago improved with adjusted million and was the benefits Colonial segment in by to second second favorable of within from ratio period growth driven operating benefit for XXXX, in the experience. quarter premium increase in our quarter Life compared the was The $XXX.X XX.X% million expectations. $XXX.X

sales. premium and driven seen the of growing of X% to driven X% quarter in just $XXX.X by of compared the from X.X% Premium XXXX, quarter communicated primarily X.X% growth of million the the levels the momentum. grew Colonial by account we trends of to prior first in year, Sales we've to January. sales second half persistency of increased favorably $XXX.X which in new higher in income under income XXXX growth outlook million compares for million $XXX.X second full-year of X%,

within Closed alternative of due million result Block quarter's XX% from primarily was last to alternative than of $XX.X Annualized top the $XX.X was end was improved returns. expectation yield income of at the other asset X.X% operating earnings In of our segment, portfolio products million. income Closed the on higher Block. adjusted and long-term The of to the increase asset higher X%

decreased XX.X% which NPR impacts premium period the higher to ratio to same the of The of quarter in primarily at XX.X% Sequentially, year-ago the than XXXX, of quarter reported driven XXXX. the LTC by basis is the non-capped cohorts. points of compared experience was due the second net assumption of the XXXX, quarter in XX third the in favorable update first end

provide Let on update underlying LTC also experience. the me an claims

to As of return patterns a LTC have the as is continue on block. normalization prior in to inventory in we calls, claim we claim this period pre-pandemic discussed

as to elevated expectations trends last still to of support in compared second quarter, recent Similar quarter our the XXXX. quarter, continue these to incidents the expectations, long-term first to improved while experienced compared

of our hedging such block. of predictability actions and the to footprint rate increases and for Finally, to through This the active strategy advance goals value, Closed contributes program. increasing Block we our as continue our expanding outcomes pursuing reducing creating management

actions in these goals. the highlight the we progress to now specific second I'll took quarter

the increase we in First, quarter achieved our the our target and execution to rate we continue assumption. in best of continue refresh the rate confident success of program in have see program. of increase approximately third Since estimate XXXX, to our achieving feel XX%

the took line interest interest rate which to risk of our to program, by LTC the in come. we reduces expansion product locking this Next, rate for in favorable environment macro years opportunity continue the hedging

forwards. of we the into approximately the quarter. second notional And During entered treasury $X.X the the open value end million hedges quarter, of was at $XXX of billion

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

losses quarter, relatively year. in remainder segment the million Corporate consistent As stay will the the expect range discussed of last mid-$XX in for we the

now Moving investments. to

to environment once continue levels portfolio our again good We at the yield. earned above yields for in a purchases with quarter made see money new

bond $XX.X alternative million invested investment investment assets as alternative year traditional million the income and, to from $XX.X call Income our increased to Overall, lesser million income to a miscellaneous in a increased. $XX.X was both premiums quarter. compared ago extent,

with We the pleased continue benefit portfolio. to the be composition of and from

in that the can partnerships assets equity over partnerships. real the construction volatility quarter, with of Year-to-date second and XX% private our in that our As concentration. expectations. invested asset billion, long-term diversified in returns valued total acute meet asset XX% our private This at of class inception, since just experienced alternative partnerships, credit in manage diversified alternative XX% portfolios were be helps $X.X has with and portfolio achieved end

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

for of targets insurance our average $X.X at U.S. approximately offering capital operational XXX%, capital companies is company risk-based levels protection and our expected, in excess As liquidity remain needs, robust tremendous billion. ratio and weighted our The well flexibility. holding and traditional remains

dividends get are into from are We previously holding add year our with the end quarter. or LTC, I weighted cash quarter, contributions on capital also which will no geography towards at that as excess track from will risk-based change communicated. as expected fourth above capital to our fourth company to subsidiaries to traditionally the capital we the levels of insurance we the

put results benefited the million the near does with laid This on quarter quarter which second pace billion, year. this first year. ] range generate out income end earlier for of the metrics million in strong to after-tax statutory statutory of Capital $X.X $X.X billion $XXX.X to of top us the from operating half capital second our we for $XXX.X and [ the of

and paid capital model generation the drives ability stock to common Our million to strong in in shareholders. return dividends quarter, cash second we our And shares. repurchased million $XX of $XXX.X

capital deployment we repurchase the $X authorization. option $XXX will billion. we of remain of first million new effective repurchase, be is as that of to returned and priorities. the our we capital a through the Board us this and This to of half in tomorrow, year. authorization authorization now committed greater utilize flexibility half As August has amount additional deployment dynamically expect replace up of our the share second to In XXXX, This share new current X approved Rick referenced, provides Directors to

which we're growth throughout second So strong sales, half our will core expect XXXX encouraged premium the trends we operating and to have persist close, earnings in that similar across businesses. built to drive and momentum first of the by the half,

higher Coupled outlook past a now focal to disability group sustain EPS earnings been for the full-year and expectation this our in power, improved point foreseeable driving expect our XX%. is results have the for months, with we future. to XX% group XX For life, growth for

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

Richard McKenney

to this reiterate, and Steve, you, joining thank Thank for everybody like Great. I'd morning. we us

great through growth to in halfway our created momentum a strategy. the execute and are position as we year on We look the

questions. your here to are respond We to

it up the to I'd our Mandeep? call and open to So Mandeep, like operator. turn over

Operator

line [Operator KBW. from question the Instructions] Krueger first Ryan of Our comes with

Ryan Krueger

you question market as, is today you the Can at distinguish as Unum in first US. guess, you My point? see and environment I large on core discuss environment maybe anything competitive well the between the [ ] space how this

Richard McKenney

It's a over in Great. environment-wise, Thanks, competitive question. a Chris. to Ryan. we good competitive going We're broad I would business. it say are turn to

forward mentioned look where But we that. Chris? me let some you see details, -- we get so segments, across And different especially Chris different to competitors. give

Christopher Pyne

exciting for real thanks continue in investments, what I'd it's space. that be very we're question. problems. where customer competitive the capabilities show an Ryan, a technological to in with in really is up environment making market make different Certainly, important, That us time start solving Yes, does our our a way.

are respect talk to a of lead strategy. Connect having platforms things connecting our like HR while broker up to management, lot markets and to reason about their other competitors platforms So things traditional doing our management customers good work, show for help with broker through we that capital their who connect through their serve human like

would important, inventory. through it's good X/X only the and not really market we working thing, factor it feel the right point price the and fact negotiations, we're around that core does but versus large, the your change that is couple where And game to in that about is a that. market with large I really now

the customers of gives what a an at mid-market feel of of happened winning. to kind the strong we we're that in of year, there's little still going really sales we're actually good very it's where in do putting end of them. the year. Mid-market bit of feel is we to to our the the earlier working work front of be like We're we're are But good new the to start. in sales buyers, in us through. terms premium view believe indicator capabilities arrive both We a a quarter. who place And quite the strong are in terms off sophisticated the of first And and good of what choosing through number half really a about that

showing market with selling, a And We've for thing team is a doing who question. Thanks it's what would all in really of up add the very strategy. coordinated last got team. part in they're it strong and we're of folks the I believe a really well, we're

Ryan Krueger

My think how and now follow-up of outperformance the is pricing in US been know those I this asked life just when the in group just has loss you about think ratios well, how kind the about thinking and you -- in Unum the but years? past, benefit disability environment, as about next of a times number are few group sustainable

Christopher Pyne

levels people approach, give business also Yes. basis. continue right work transparent tying good what we capabilities for them partnership. that predictable we a terms Chris, in of levels think, We returns need And do on and the that fair case-by-case allows Thanks, it kind can pricing the stability. that with We when are long-term of very again, our we in of you're Ryan, about to are again. with that it we and do feel book pricing the to a pricing gets level upmarket,

serves but well approaching we're feel in market a price us the we terms capability-based that really of of are is part combination that competition of it, result. good the Again, very how negotiations approach real, with

Operator

of with comes Our Kamath question from next Suneet the Jefferies. line

Suneet Kamath

perhaps of strong. like XX I but to the I the Is the little lead services as story? It going what you and seems not this that of bit your want to additional in US a provide, just ], it X on like, quoted just persistency. should part was, were maybe of was management? very and seems relative to on outcome of level continues be follow big And that those those Ryan's focusing forward number we up Unum strategies a [ think just number past line you questioning of higher some of just a Connect HR when expect persistency

Christopher Pyne

in-force a thanks the we renewing persistency a comes for And that's that's are more lot thing. total, I and if to And expanding there's good the part back were step that what Chris, capabilities, about with block, Yes. that persistency, just question. to story, think but obviously Suneet, right now, block, in of block. keeping enjoying and a exceptional our

a the for And that that of the a investing the were a say we're seeing fewer capabilities we're it's of a probably part, become few historic story. right in bigger will be in from exceptional obviously, now now, part past. more results would some came right complex bigger And But as I RFPs that maybe persistency. that -- future

the a That's standpoint, the And starting end to see activity also sales level now it in some a new block from we're forward. in quote but on market. pretty of prospect creates going robust the good activity of in-force larger

a it's body capabilities, dynamic story. So not whole work. that the Part but is of it's

Suneet Kamath

And confidence guess gave on group Got around I were going it. your things some on structural think back just then I I recoveries think and there benefit ratio, that the life. the you Okay. disability group in confidence. to If

really what life, and have But around don't group I quite and just control don't it you in confidence much I is that. gives over it of so guess given you bounces mortality understand

you're remain of AD&D benefit the in in now? ratio it at neighborhood it is can what that So is that, looking group that that where suggests right kind life,

Steven Zabel

Suneet, can this fill Steve. is I one. that

of back, of is Just business, block a first $XXX about this step of premium. relatively small quarterly all, million

us, really X to can pretty seeing claims for also pick where We're experience. it pricing what be that a stable. able So basis. I that favorable have going be confidence number a now, on tough quarters is would market is exact we're tremendous to we've pretty it and quarter-to-quarter of hit is just volatile, seen right say number and to a

over just the seen targeted expectation ratio as the the now. last kind X for XX% we've loss of quarters it an We've remainder of So year. the

can maybe confidence those remainder quarter-to-quarter. But of some kind change the over we it tremendously, But year and expectation. can change it of that change. as good it margins for usually time, doesn't for use so planning the that to gives feel us And us a

Operator

the Our line Joel comes Dowling Partners. next from with & of question Hurwitz

Joel Hurwitz

So are question, that guess, this at incidence you from get trends? I the far just long-term to some guys on given you point, seeing, can provide how the trend you're would you first And the Steve, expect expectation? color long-term more care off assumption? to that

Steven Zabel

I'm above metrics, predict Yes. when we're continue improve to it. see I'll back elevated at we our is, in going look incidence We internal expectations in for sequentially, in to going operating quarter. get longer-term claims not say incidents, when levels to did the our the it second quarter. What second did aggregate claims

basis cohorts It how we've the past, played discussed the in see that about in how our against was points, that is feel reserve about the ratio. cohorts. so the XX did was you within net what It experience reduced we have actually impacted good our reduction would premium through earnings And as the interesting, that long-term expectations premium net ratio. favorable though, And that. uncapped is drove and in what

that earnings in did have reflected there some the and be continue would unfavorable cohorts, been But in capped the just experience during period. the to current

that believe are need plays see how of obviously, year. in year just seeing. the half we back just the because half the do will to the trends back out dissipate in that incidents continue the to of We that of But we

is. say kind that I quarter, and basis what the just what against I've talked in trends long-term for to the on inventory. that long-term flatten of expectation for again our would saw back really the how would we be the absolute that past And an just inventory overall expectation about claim

So just it out. see we'll gives plays the have how us year some confidence, to but

Joel Hurwitz

touch to and line on appear sales quarter-over-quarter, shifting strong persistency. on And Life, the pretty improve I helpful. That's persistency? Okay. So sales you But think, just bit Colonial then will was still still little solid, both a can challenged. top

are what two just those from fronts? you So seeing

Richard McKenney

Tim?

Timothy Arnold

Tim. Yes. This Thanks for is the question.

sales So bright with from over spots. of sales slightly There lot perspective, first X% were a growth year-over-year. a quarter almost improved

up profitability ] sector, our And were best we target the sales including X.X%. quarter. up up in Public New other sector, case XX.X% public were markets, X.X%. sector, our not was [

did existing on evidence effect The as of on beginning finally they quarter, we that the first consumers. -- there's that's headwinds we're the to think some came the primarily, And inflation in book. see finally

just possible, ensure double pressure we've that down our capabilities so so to seeing. we're reaching the many that's as to we're on so say. got And enrollment to consumers But

We You the persistency which feel service about that. Colonial all levels the quarter. where and levels, contributing to our in we have, side ended overall persistency really record think we is mentioned are great the strong. We Life on near with that are that capabilities

it persistency about good feel we earned on and So impact the had premium.

to We're agents which Life to initiatives. that also continuing leverage that Colonial pleased the with product see Life and capability. and continue Group Colonial Colonial sales were cross-brand sales Life in we're significantly Assist reported see are Unum strong quarter, success our Agent Gather, line, from not to agents, very in the

BB Unum ask sales XX%. sales up a didn't the new quarter, ] really You on on that the strong [ side Unum side, of XX%,

the So BB Unum ] strong [ well. results on really as side

Operator

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

Elyse Greenspan

you Should is My of year this second think the than on guys greater -- of being guided half we the return. first half. to question capital first

above [ at into $XXX million. going Is like for you capital XXXX? that expectation So that ] return puts the 'XX think baseline when about

Richard McKenney

the Elyse. for Thanks Yes. question,

capital step deployment. little back and bit me the bit little Let about talk a a

end the expect with generation of higher our strong that us I generation our I we up would statutory coming capital of to the start that I'll see the range generation. taking entities seen we've this mean year. to very First, out of reiterate

looking faster. also grow referenced continue core table all are take basis. deploy back that capabilities as a we've to talk M&A out we into bit is to a to so grow on little on that And there want And the along, business, into competing straight Chris account the certainly as as about and think said deployment, business our about the we we to

us. we have was And And what there, year. increase putting talking our of the things, so in our at think the as earlier saw about to about all very year, were then to $XXX this year double previous about we of the out those use, we important happy pace good million dividend beginning we repurchase, talked share capital we

And so good. all that's

seen But second quarter, the when the make decisions the these be what going you about a beginning at quite dynamic to often. we've in think we're accelerate us of have we is bit. actually What share repurchase. year We would seen we little said

to it half. specifically in your to $XXX then the expect And more that be million, did second say we question, higher we

going continuing way be to baseline, repurchase So our a share to when that think think you as capital to it's our a reasonable probably about through be use putting plan. dynamic we to about talked But are and about that.

remind you billion. that $X did Board just I'd authorize our up And to

we put So to work flexibility to back the our capital buying have stock. do by

Elyse Greenspan

going of second about then mid-XXs? to this the guys low should the to to 'XX, like back life guess, ratio XX% think be where said year think going benefit And I in and for guys should about you kind the we kind around of that for the When my remainder group of question, AD&D, guided back, we year. you had

Steven Zabel

This is Steve.

talk probably I at a XXXX. little think it's premature about point to this

like. year, bit what And get we the margins we through of XXXX the plays see low historically, of kind of half out, visibility are XX%. right, looks back that You we'll we'll in then start little to of how say, a sustainability the benefit think the into remainder as are. I the can see the how year ratio we would give was more

would an it's back XX we like wouldn't something that that nothing that what until be safe to XXs of see predict year. low say, the the that now to just Elyse, say expectation, half look in to think of that know I hard right we but it's kind might there's

Operator

line of the from John comes Sandler. Barnidge question Piper next with Our

John Barnidge

talk pricing versus And much that count? in is of you growth offerings how from new about the employee coming the Can U.S.? expanded and

Christopher Pyne

Yes. to John. back Chris. premium we we Thanks, of has of growth to past several ways. a normal. where our normal. cases growth get also in growth the we growth, increase. to need come wage And the we different that saw back is The price Employee kind This seeing kind up work are But

you're then obviously, the fell and optimistic we we'll sales things through, if Based the new balanced, But mix to adjust setting need future. on that that And of business contribute for what price good very come levels, for experience, that's it's seeing. down we we're a to. sustainable

Steven Zabel

growth, I'd a nice X% that, quarter. thing really about the us. the ] tailwind that talk heavier was only for natural provide in growth [ a weighted wage quantifying in It employment growth, John, continue to around to say second script, than didn't to probably I'd bit was the add it. but we little

John Barnidge

my then And question. follow-up

over extend premium higher several on that in the years, With view ] secularly the the to back growth? last seems of that do duration be opportunity the the board strong base how force higher [ to you persistency of EPS

Steven Zabel

repeat that? can last of you John, the part

John Barnidge

higher the to opportunity Yes. do the expecting? that that view of you duration now extend How we're growth EPS

Steven Zabel

expectations back of what we say to would I Yes. go would our kind longer-term be.

business. As for support we we're future comfortable with that back given that, the guidance a in provides and nice type pretty about years, long-term talking have would that we're think January the of

operate market to expectations, forward. that able we be and and going to pretty way tended environmental well feel through We've different

that expectation year. So of that to talk update market X% little would probably get into bit be we'll going but a we the next in XX% range. long-term about January into next year, as to But early

Richard McKenney

key too, -- the thing, the it's growth. think I driving if premium think about about you John,

that, this about, especially to share that And us job that XX% in that with that line And year so really range. to getting count, with if in team top XX% reducing a with XX% but margins in to discipline we that happy good our happy as we you talked combine X% We're our get growing, then business. leads the good we're growth. does growing

Operator

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

Jamminder Bhullar

it your improved on at fairly sequentially, little first bit If premium ratio, a like a as still look question long-term a the just net it I care. but running first, seems it's So whole, half high. for

are if trending initial do reserves comments what versus just [ you're are any watching you to those raise ]? you So expectations? And on key need the that metrics to wondering, how your see as review

Steven Zabel

the Jimmy. cohorts see come that we quarter, in kind our did Yes. although in Thanks second It the for still internal quarter, of see it down operational comes back just did all in. to We question, the we metrics. see first go the down which elevated. I'd elevation to that

in cohorts I would against first uncapped. had say, in those that expectations quarter, unfavorable experience the we were

bit would second go that we So the a you where And favorable reversed have in cohorts. those then quarter, seen up. little had experience the NPR in

just forward. that's see play so we'll And a dynamic that

for go part early reserve that. the third of all our this to Specifically And on the will it's our product able review, on LDTI do results about that assumption a be about our and on GAAP, quarter out and of quarter, about that we conclusions. the we'll But third of and the call. we in then comprehensive just to through lines version through we fourth year quarter really statutory to of any talk able talk as in to be report go that review remind,

But looking assumptions. when we're experience these sets we of obviously, longer-term at at all look

that no seen the but in years. think earnings. we for And several when through only year you quarter again, new But how we so we'll that about yet, assumptions. account, seen we've will take get not update conclusions what the And last we've third reserve and last we'll factor into

Jamminder Bhullar

I then some first benefits that more look commentary. sales the your group And competition And peers been if your half haven't your overall just good in cautious results, on the the sales, in than year. at been on commentary of of your they has from

just So or of the is it competition whether of how in because cases? case larger much you're some of it's volatility the sort weaker otherwise? see seeing, sales you of normal Or is large

Richard McKenney

Thanks, Jimmy.

to sales where talk see we go you beyond off what U.S.? do of and in going. see I just us Chris, story sales we our the to start and each business want do that competition, think we'll about the are

Christopher Pyne

the for again question. Thanks

year, first we through plan. half of ahead our So come of really, frankly, the the

We good and prospective So feel in with We that to where lots in capabilities mid-market. the us conversations getting about we winning feel talked finalist see sit we of midyear. ] customers, [ market. really about very mostly meetings good the that I've about driving

volatility on and first little mid-market the you from a dates, a effective based dates effective smaller pronounced. half basis it's year. that comparative fall just most large in Again, US from of bit What more is the see Unum year-over-year, normal the in to see

on group in for ], X/X effective little [ bit happened ] more Last second largest [ Normally, centered even a based year. sale be would our of that's year, -- X/X sale last by insurance we abnormal disability the date. and happened and individual that on quarter had just our largest

no So with, when put And pleased dynamic really team [ look X/X and ], we full-year the deliver we're of strong with And we've bringing things when stand. can environment, again, new I message. kind that cap premium, isn't a year-over-year position and very a forward confident it the strong new a I question. on we're that with we're in But competitive sales again, mid-market coverages sales, where a got compare to, result.

Richard McKenney

Great. Mark? go U.K., to the We'll

Mark Till

Rick. much, very Thanks

that us. I quarter on think we're was record for really in look quarter I local the U.K. that pleased improved much with generated It International in X sales, growth currency in the growth quarter X.X% If in X. a X. we at was first,

pretty of we've overall, U.K. at the we'll creates perspective, investing Poland, see intensity as has about is good the X% been the we strongly XX% I the very actually, beyond the with And competitive start And say market ourselves which acquired. consistent. in one in very been year. second a of And to in story think the the price. that line business gave from proposition, feeling our leave would being we're a I outlook that half of competitors year,

Richard McKenney

And sales. Mark. about a you'd add to little Tim, you I question? Anything, the talked know bit Thanks,

Timothy Arnold

Yes.

Just to reiterate of points. a couple

year-over-year. New our X.X%. places the competitive sales markets see Those think from in are you would pressure Sales up up significantly the environment. I target

our clients, inflationary with competitive. the and pressure that's benefits the is we But marketplace competitive. So voluntary we're versus believe existing seeing is

Richard McKenney

the appreciate Jimmy. question, So

competitive, I environment. on I wrapping That the is live all a to think not that new. in hit operating we've used We in We're up competitive it. think environment.

see the just that's And from the a out see for so irrationally, thrive competitor that's we in. rogue we We out in our don't world look aggressive perspective, competition, there We good and market. pricing that.

Operator

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

Thomas Gallagher

another beat a here, benefits to question Sorry group dead horse about competition.

competitors new heard group on that mutual the well some we space. week, So aggressively. insurers that company's as call last companies about into were but up appear be ramping as to growing another and entering big players, They earnings benefit aren't fairly public flagging

a growth And Can terms of you're competition? comment new how that? seeing affecting from pricing perspective? from bumping into in things is Are on a what you that you also or

Christopher Pyne

point. some market. into a can Yes, Tom, certainly the good it's entrants We name new

generally are end on they're them of smaller -- of market. Some the the

newer in dismiss a subset of are states, in up different a show basis We part don't reiterated. get about, openings maybe more sense they price well to to to of market a talked Some products to starting of that's that we've that want on where competitive rick up show dynamic there. to factor, show just as them My the certainly they're up getting be don't likely really compete approved would all I attention. that entrants in the places. I kind the want of see --

the complicated deeper see a things is a lead portals less you of for year. part is and bit that probably self-service little a thing as entrant, the not say, why And and start think you market, sort platforms drive headwind little on sales biggest to of real of digitized the connected going to which as yes, I getting any true it's maybe new when but management, would the results we our

Thomas Gallagher

just helpful. or some you expect been that should And Would you on helpful. both you. are disability broadly, renewals guys stable? as That's into Got I some the described rate rational. has I thinking say, commentary Rick, Price I have directional getting fairly market group pressure be think, on being it guess, pricing? you're What you for Just Is 'XX? life. would and stable still competition

Richard McKenney

in how rationality you think you with market. see capitalize We actually the -- Tom, the agree I Yes, I it.

outliers. range, a in seen to have years, that go that were irrational that back I so that's Now we've the were we previous clear years, people be real X-plus very

on capabilities And the so a in in can today. aggressiveness front. bring there is that and win but market and range compete forward that's that we our

on add that? Maybe, Chris, you could to

Christopher Pyne

persistency level year's question, this exceptional. bit, is There's a no little that about Just Rick.

plan. back pricing our the ahead persistency, this we desire plan but for get with this for do adjust maybe work and and discipline We high their stability meaningful the how So customers fact to to do we on reflects, as year future. and is price of our not use as long-term try that just

be it running When does that pendulum a you're well, some your cases is right then adjustment again, or ours down very deserve years that like the that customers long be. up are X priced work that we're with. But price make there whatever they're of in might they block mean well it need for is, and don't of and comfortable that's increase term, process a a sure up still again rate a dynamically to And swing, down. where want moving to sort will we kind

to package that focus we're discipline, go and their I back put solve customer and meaningful return on for a I factors, things So able sale other back management working term. and long to important, that of to a lead the are is fair is bundled really in and stable nice and together go the gets problems terms to the technology hard in ecosystem

Operator

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

Wesley Carmichael

bit ] again to frequency? any is down little [ offer And a just maybe if quarter's current bit in wondering ], where just of could this a normalization what you more color And favorability, of you still a the experience, terms would group or be saw cost if in little saw specific just you drill could unpack you And post-pandemic? maybe incidents life. just I that mortality wanted great. in [ in terms

Steven Zabel

I levels. think segment life. it's really again, kind definitely X over group pretty around we've And Yes, Wes, can seeing. group consistent say seen focused depth combination it's It's as in really is that. on life as in call in That There's that would It's performance the both of traditional incidence we excellent we're what traditional I the cover would a nothing I around dismemberment. severity incidents Steve. count of quarters. really just and last well out.

a had we least short I our had term. has and But to of think and I endemic would mortality here do in in the say some comment that the there sure whether something really I'm should still think will can't we on connect good that. pandemic. that, the two. I block, that that predicted at just pretty not that still continue it I with run some we've is

Wesley Carmichael

Steve. update anything helpful, changed view? And transfer in just market? That's in the care the risk past couple over maybe Has months your any long-term of

Richard McKenney

Not to exactly back to happen Wes. pieces price. of how I'll look it lot. in take another it in parse you and a being that Yes. at our block I It's just to transaction different at mean, as terms Thanks, the been the and happy market. see buyer were say right right able talking we well find the we've about in

can done, the what I But buyer the us think that certainly a again, through we've right going be this the raised which tension opened detailed have up once is pretty and little work, levels. market process. a doing bit. People finding

ago, probably up opening ebbs I front. announce do. we focused very year we bit, we'll it over little happens. a want right buyer, wouldn't the of It until say But that new it and the I'd that did as is a it same. But the But we something but market last are about So say that still years. actually that to that on on, several still is something kind flows, that talked anything we've when find

Operator

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

Mark Hughes

is in voluntary? the target What benefit supplemental and good ratio

Steven Zabel

voluntary I is And and business . mean little consistent around dental business that business those marketing, a and vision. ratios. a tend bounce we're That our individual bit. fairly we've of our line benefits think of to Yes. combination benefit I disability currently our had income

that good probably If some back in it's were when say, margins that January a last you around pretty gave we we that, something at would I'd seen we forward a go expect XX%. going looking pretty guidance, business. assumption good I But expectation. to planning against of experience at ranged were We've that's looking think the -- we what that favorable

Mark Hughes

XX%. XXX next curve premature, starts to year? rate-cutting a your cut, should And rate growth XXX that Or go them? then do I cycle, be guidance Very this to that about to earnings about material have You X% mean interest for impact? what good. thinking we is think of forward referred that mean, to the how long-term but may a as we worth through does Fed points? If does basis the

Richard McKenney

Yes.

I day on rates question will it's the know but cuts, is going a in are, the happen one. because curve what's your don't that take. of the is the Fed we that good the rate about a action premature terms they long as of to result think and and any market of the it end where I in know think

a when of different it And talked a we environment, we've environment handle than I'd -- this cash flows hedging, for anywhere about talked year. will it next be think we'll good see impact and goes a with say I that, that this about of the longer XX-year the XX-year and ] kind us. on for that's environment. term operating say them, actually And will We've we if well. new so be as locked up [ bunch that

are them. Mark, [ really when the more ] in talk XX-year might to have and we premature, We've to And once don't difficult that -- XX-year we're a And operated it's again, on I go know for that And handle things about be. either. where impact are think so happy environments. going what

Operator

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

Wilma Jackson Burdis

program add you sense the Or there you hedges rate doesn't continue make Is are hedging going just will anymore? the LTC forward? How stopping thinking to until natural environment about point? a

Steven Zabel

Steve. that one. is I'll This take

it have how years. provided over in there it regulatory to of and So that. as about -- good a kind feel that of relates happy it We kind methodology we it's love minimizes program, our now it. good it a basis. second we've we've at did quarter, We're of We been with expanded for grown couple of hedging the capital on book sensitivities reserving risk all, really first LTC management, and our the

the horizon. back years next to what we've And protection targeted to for X then is XX% investable We cash over on. program go up X, year we've are. just target those a of put X over to and and flows I'll XX%. time targets how flows the cash what at we're set And our targeting look

And and accounting those securities able really and mentioned the just the we and can of, I going in before, on that's making deliver just market buy being and out hedge as methodology them. to sure that because execute

expansion. nice So

X.XX At price $X.X business. strike second our of about book on of on billion. billion the is -- put $X.X our end we ] had quarter, of we cumulatively, notional And [

I'd we're quarter. have ones note question, be. is going a new then got thing targets. getting close to on your will laddered to want mature Specific we pretty we maturing, cash we're This pretty quarter, as enter another to kind those continue The our to into last basis, expansion program us where only much to of placing we're the and we they're every really in because the we're quarterly out, those where extending securities, that

now. where about are right we will good So But say would I notional, continue the the cumulative we build. number pretty feel to absolute

Wilma Jackson Burdis

Okay. there ]? a this little some acquiring is capital Is And bit changed reevaluating then all? of of about [ Or you your capabilities. opportunities talked there just are attractive more there? kind at possibility market -- Has the any the usage out

Richard McKenney

Yes. Thanks, Wilma.

opportunities we've clear There about actually we of want I talk our that out business been when It at. where we areas we is are think we have, there look M&A, can think about growth. that. to enhance about to capabilities

deals deals. careful a those smaller are size of I where size, type and to be got that be these Now of would I

terms And talked available we are But It's those that changing we've these where not in can consideration capital think of markets to our that our will think year-end. a about of about there in active out us enhance dynamics that to growth trajectory. very areas the and be. enable stay we they're deployment at

not it's the capital that generation be But we've once again, to going a consumer seen. of large great

deployment very So capital good plans. we feel about our

Operator

question line Michael Ward from Citigroup. next comes with of Our the

Michael Ward

there's was year? that wondering -- for there's of back any unpack have alternative and drove Closed uptick outlook half specific you in income if that I you if just could the if this the Block, quarter anything the if

Steven Zabel

Mike, that. Steve. handle I is can this

alternative income was second the quarter the for increase $XX.X That last yes, of from quarter million. So year. was an

annualized the And was to for was XX% year about quarter. close last X.X% yield. yield it Our annualized X.X%, yield

expectation XX% be X% range. longer-term that to Our would in

That's value the we pick expectation. would billion about that what we that would So when right use planning be would the our for use. build midpoint. we $X.X that assumption now asset in And in outlook, our It's portfolio.

you're I'd just kind kind the going that's diversification. we've that really performance trying We somewhat the that stable since But in inception we've think X% really say portfolio. like We we yields year. it. the would us just peg XX% be helped happy that and had with this if of we're that that plan to is forward, seen definitely of range And to where in

how pretty to is I It going over assumption. you think volatile be I these good know time, work. quarter-to-quarter. classes asset that's But a mean

Michael Ward

just one, I headline underwriting on a guess, study I or feels early the level or that Okay. it's like showing I yesterday, maybe little of it's a think Alzheimer's. of maybe progression drugs, -- sort And that saw for potential another policyholders But delaying then seriously maybe on, this. long-term higher is maybe care the on guess one I last from benefits GLP-X a preventing it

point might really where So that we it is think need actually there to any something that be you think guys about?

Steven Zabel

this Steve. I'll one is as that take well. Mike,

take at I'll a level. high it So

really that these seeing wonderful. it's very which closely in accelerating, society, like are It development of feel is drugs the the how are trials they're For these We that. results track great. does going,

very with obviously, that. So happy

then back kind just and a a things how of the of general way and across think be other specifically time Net-net, being around to should types business, it take step advancements we are lines the the it work When evolving, its are many positive our into should drugs positive. Alzheimer's. population. population of our will it for developed, product these And be into for about not those that insured

our insured again, until something expectations for way wouldn't in changes we of see we're actually trends really society. we our great our the and But its population. block So into see optimistic, work change

Operator

session. Q&A over now will turn closing back for McKenney our Rick concludes That remarks. to I the call

Richard McKenney

couple and your interest. Thanks, staying do of Mandeep. extra support appreciate on a minutes. continued joining We Thanks, everybody, here us for and for

we Our results outlook. exceptionally in and are new and were second quarter revised that our strong, reflected

either to you in Thank next it, as dug very that to look these see we out look of well as the that we so And maintain confident all back I to strength ability you as to us. market as see well. call half hope the our quarter. in on our We're or call Thank talking into you've our the levels end joining you year. Operator, forward for We'll will now quarterly today. you. the

Operator

This today's call. concludes

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Unum (UNM) 31 Jul 242024 Q2 Earnings call transcript