UNM - Earnings call transcript Q3 2024

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Operator

Good morning. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the Unum Group 3Q '24 earnings. [Operator Instructions]

I will now turn the call over to Matt Royal, Senior Vice President, Head of Investor Relations and Treasury. ahead. go please Matt,

J. Royal

Mark, Third morning Quarter you, to everyone. Unum Group's XXXX and Thank to good Welcome Great. Earnings Call.

expected today, session. may to said, by materially, and actual Mark we'll not prepared differ with As obligated periodic factors these SEC from are for the remarks results a of to that may any Q&A forward-looking to with cause results. Please update results our Also, earnings description include of call we filings refer today's statements. statements, release could and actual and our a begin followed differ

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

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

his it to turn me let Now Rick comments. McKenney over for

Richard McKenney

fourth Good the third quarter excited you and quarter toward morning, everyone, to we for our to and begin We're to results as discuss thank joining us. look and XXXX. trends look

mind has as quarters. year of entered been through growth top For XXXX, X we and the

higher the million original Results to per strong was EPS generation. for full flow XX% statutory surpassed XX% reflect statutory EPS on We earnings the year. our billion of broad-based growth achieve bringing over us path outlook. performance is for quarter, earnings the and expectations which $X.XX share for and $X a cash are of to Adjusted our $XXX solid to continue year, to than

in updates far XX% note overall led per was ex that over to growth in assumption book year. our value higher significantly reduction to so reserves EPS You'll this and reported an share as of additionally, contributed OCI our

remained top core quarter, little healthy in increase we up X.X%. bit premium line and X.X% is Our growth, with a lower were this but this a year-to-date, operations

over but high, sales year. prior were remains down Persistency

sales concerned. is quarter it XX% saw and about smallest difficult our last so not full quarter comparisons of at have Third we the to overly us does some year, year,

thing optimistic for important the quarter, we The quarter. sales that are our is which fourth is largest

continue Further, to build our trajectory far achieved expect We growth Life be momentum the for to sustain will in effort outlook. our a while changes busy year year, job year. sales environment a full an U.S. quarter, expect U.K. so this the Unum navigating we most be in They've within the will the and last and in flat of years. likely the market It we resilience full takes team over the are excellent of fourth done our team. and several appreciative the Colonial

an Our solely our gives focus benefits concentrating on efforts. us advantage is in employee

productive improvements solidify experience into sales and to sooner. leading delivering work from allowing leave to life more This employees spans our to teams for Specifically, employees and we've our for highly processes helping get on investments differentiated smooth made a tell. fulfilling clients the productive our back technologies helped the to ensuring a story have enrollment we're our a

the picture While are to all atmosphere, continues credit business customer our employment a benign we higher interest unwavering have macro positives. strong rates, model, support an resilient environment and focus, the

strong highlighted were results by the Looking Insurance across U.S. in the very Unum business. Group in results franchise,

continuing and a in see disability line this we multiyear strong term. another benefit Group near strong This experienced where quarter levels. the drove been low performer, recoveries has

a with benefit life ratios been in performer strong has group XX%. very Our insurance under XXXX business

quarter. lines both across persist to trends the experience fourth similar we into expect We as head

and grow to Life continues faster, grew a line initiatives quarter remain with to see X.X% the on and with strong we Life in the like to an within XX%. that. top persistency focused strategic We our to continuing nearly third close franchise be key do with Premiums be to ROE margins sales valuable of excellent, just flat. Colonial would Colonial

translated to Gather the The enrollment to XXX% sold implementing and administration benefits year-to-date. transforms which platform, XX% This on momentum sales to Gather up close of of platform continued with over gain new premium year-over-year. has to

of strength with quarter business last international XX% consistent operating quarter XX underlying million. another around Our growth over U.K. and robust had full to at at premium earnings GBP

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

business get pleased doesn't are how much size, always given its we the U.K. Our but with as attention is relative team in our very executing.

see in in customer very combined to Across we to equity and execution, the enterprise, engagement, on XX.X%, equity recent our solid our earnings our attractive Consolidated return end outlook our pricing across return of was before-tax core well as operations most were top margins and discipline our lines. the continue with and product returns a on healthy consistent translates operating ranges. above

year. strength cash adjusted positive true the for sheet. STAT flows total, and balance flow after-tax the GAAP $XXX In of this generation from and into X.X% million the of results earnings same last both increased The operating time are

care is and couple actively overshadow behind taking and is core active where quality and of very people continue and we increased franchise, in risk of are transfer. care credit of to our been late respect their everything business we need to insurance cycles, times in bolstering different of working true is care, care to years in care board. Long-term capital. With pursue its for strength the positioned long-term have long-term strategy our the whereas balance we've customers well at sheet we is investment life, expect have our do for don't market where long-term more It profile from capital our over else very also our purpose We of reserves across increased portfolio, future can the years. the we last

and time was very over the holding $X.X right targets. our Owing at the this with ended is removing a price approximately well why statutory company billion, together our and our picture million, The XXX%. is RBC liquidity objective. of $XXX north strategic It at at capital over earnings much both levels

and With been free business the our of balance substantial last to capital flexibility. our of adding position sheet building year, the flow core actions taken cash strength has deployment generation our

balance to also capital continually capital repurchase. our business structure. organically investing through strength, examine dividends our and returning and remain Our When sheet share priorities we intact, our then deployment look at capital overall shareholders and in inorganically we

of As result, facility capital This given end of dissolve following to the have we a decided our longer quarter. a trust tranche third was deem necessary our no we sources contingent multiple of pre-capitalized the capital.

when for into of for additional above quarter bring million million decided share approximately share the $X repurchase up $XXX and amount from normal use one-time pace proceeds year. in the We've to with purchases, XXXX, we'll billion $XXX to outlook coming our a repurchase fourth and combined our the in the total of XXXX

pleased environment. our across the fourth we When restarting factoring expanded share our are operations by trends in repurchase, and quarter XX% many Overall, over the we since in will program float have positive supportive reduced by macro our XXXX. repurchase of this the

XXXX. We as into sets to growth, important an of to forward-looking, another marked are up milestone for continued period XX% which of year. ensuring served company well our on to our progress deliver the and quarter remain XX% the strategy strength on execute for Third we positioned outlook EPS

more Once and appreciate Steve details turn again, we you perspectives. me to us Steve? morning, this for and joining let it over

Steven Zabel

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

The a operations. levels persistency support across earnings performance, saw at with very our margins and above the growth for remaining premium our and helping historically good third first expectations, of year-over-year half and strong we quarter quarter the strong as core was company operating continuation

underwriting improved and trends quarter quarter, increasing increased quarter segment and favorable by strong in our we in our benefit mortality pronounced most in highlighted these for on Last was Unum outlook group in operating over XX.X% the continued adjusted Life quarter. saw were with XX% individual year the earnings down third last XX.X% with AD&D were U.S. disability Disability of and trends, U.S. ratios Unum to disability. group XX.X% Unum This third for expectations. Sales U.S. all driven U.K., incidence. based by results performance in for lower the disability, Unum Group continue we

the a new strong for quarter year to this As achieve our Rick for to full sales with believe mentioned, we sales, X% of annual fourth results and on sales. will is the of of Unum growth quarter historically largest sales target XX% date pipeline U.S. XX% our over we Based segment

with meet last sales International Across is our also Life Colonial sales its while line Unum to is target, levels. tracking other track in segments, on year's

confident outlook of growth. of Given persistency, future for levels the we long-term mix sales remain the premium and in

discussion As results adjusted by the product impacts assumption income provide following and $XXX.X XXXX quarter I segment by pretax results updates I GAAP will from both driven in the our long-term reserve including XXXX. The review resulted reserve million annual the our benefit operating results. our I third describe process the update of segment, in number and of update release a of lines, ratios, assumption will a XXXX of different XXXX additional the care. excluding details

finished by million The quarter in to claim while our the were So or operating $XXX.X to third the life. group income starting adjusted to increased third operating income of reported group ratio compared line XXXX. Results XXXX increased primarily of to in results Unum driven in year-over-year, primarily benefit million to favorable favorable above ratio to benefit disability reflecting year-ago prior $XXX.X third due compared year, benefits favorable million million continued $XXX.X outlook, adjusted quarter U.S., the the XX.X% quarter of in with X.X% in period, XXXX of XX.X% $XXX.X recoveries. the compared of a experienced

$XXX.X million the for Unum the million lines compared decreased AD&D to U.S. third quarter results year norms operating compared $XX of we income to third operating Unum in below quarter XX.X% compared million the the out $XXX.X in as income of was to Adjusted benefit $XX quarter and XXXX last historical supplemental ago. and quarter million The close third in for third the in period the to with and XXXX. for improved year. This around lower Group and voluntary still As due range third Life incidents. We expected I benefits quarter of predominantly XXXX significantly a XX.X% of of the was experience. to in quarter XX% was the The to XX%. to decrease adjusted the loss third mentioned, XX.X% same by plan compared to XX% for compared benefit ratio of be ratio in U.S. the to of ratio year driven voluntary XXXX our benefits XX%

included results steady of The expectation X%. premium in our third and dental of XX.X% of benefit of remains business growth quarter above with vision XX% of year-over-year group and U.S. supplemental total stable slightly voluntary XX.X% the also lines. XX%. to for our results in ratio was Persistency most strong stable Unum

segment The with income International. in the from million Unum XXXX. third quarter, improved its the continued to $XX.X of XXXX. increasing to adjusted U.K. the million in third strong GBP the show to power quarter $XX.X Moving for GBP operating quarter income XX.X operating quarter for million of in earnings trends business very to third underlying the million compared to third in Unum Adjusted XX.X

enhance dissipated ratio benefit year same inherent in and high third the the benefit Unum quarter XX.X% of not levels quarter to in XX.X% for have the as And ago. to did expected, increased compared XXXX The results. of a period third inflation U.K.

experienced earnings the quarter U.K. approximately fact, of year. inflationary benefit when in XX% In excluding the last third grew

and grew while a XX.X% XXXX, quarter quarter, on compared basis our growth while premiums U.K. U.K. premium in to year-over-year third third operation to the grew XX.X%. of up continue sales generated X.X%. were sales International strong growth. Sales the in Unum of Poland Poland show the XX.X%

year the adjusted million premium XXXX. Life, period year-ago down for Life segment period. which third was the X.X% $XXX.X $XXX.X premium The Colonial to by than sales income finished in XX.X%, was Colonial increase of of the ratio XX.X% from the quarter in driven to driven benefit higher persistency. $XXX.X moving that third and primarily quarter So strong income compared million prior by the of in was operating a

of Sales full for growth $XXX.X from the outlook Top to million, line $XXX.X year-to-date our meet of year. decreased the of the we're segment prior growth growth to continues X.X% positioned million premium build, and third in in the with quarter slightly for year. X.X%,

Life sales Colonial in the now As I are previously, to approximately mentioned $XXX XXXX sales full be XXXX with year line million. for of expected

normalized, net rate. offset of incidence Closed quarter third Block remained a at LTC ratio inventories slower the income third adjusted In by long-term million dissipate XX.X% XXXX compared of of in net care. elevated $XX.X The was experience quarter XX.X% to investment the segment, the income to premium premium was lower the as in XXXX. for quarter. continues claim consistent albeit prior operating Higher as at income

The the impacts the I'll in increase my assumption was primarily later due discuss talking of which to annual points. update,

So lower quarter's allocated was tax net quarter the XX.X% adjusted $XX.X XX.X% by driven tax onetime investment prior loss was wrapping primarily the compared favorability was financial operating up of third income. Then on XXXX, our compared the expectation by in segment to to rate quarter mainly return lastly, $XX.X to the the year in driven adjustments. in XX%. of The million loss results, my commentary the corporate million

that -- the The of in approximately review tax. we net million with of after So resulted review decrease moving quarter's a operating financial third quarter. positive annual the impact results assumption I'll in on a reserves million results. completed or outcome on $XXX.X the the in GAAP outcomes our discuss from $XXX.X now

While excluded in earnings, was lines changes, this $X.XX adjustments disability, saw by disability our group to businesses. Colonial which $XX.XX. Most our from per individual impact share, AOCI at and book the favorable excluding adjusted stands product it now value added highlighted Life operating

claim was improvement the years disability's care long-term to will continued and representative our addition, results, assumption and momentarily. strong our specifics detail by in Getting which the reserve discuss In as various more the million had of of pretax. totaled decrease, recovery $XX a few into past similar continued operating releases, reserve I is update group driven in

trends to that premium continue. decrease. LTC, And million persistency trends drove $XX IDI, $XX.X for incidents $XXX.X termination Colonial lastly, cases. resulted of offset premium was the a reflecting we assumption partially driven experience, by Then in and pretax expected a claim rate million reserves on before favorable favorable For million reserve Life's release claims increase updates expect in tax of lower incorporation group decrease by

the approvals reserves, margin by changes to have through update assumption an reporting purposes. year, nor the increase for rate decrease such interest premium last XX% reserve this a over drives changes in not Similar ratio. currently LDTI financial net they outpaced updates. in cohorting quarter's past LDTI assumption our adopting offset in offset reflected do the year, assumptions following we since partially program assumptions are in liability Premium are are and dynamics that a

indicate In of described. additional margins today's we short, consideration as previously would rates long-term

see interest compared discount reserve best yields of is when the our consider life over margins our no block. While of earnings the the margin portfolio interest longer in rates reflected evaluating benefit earned GAAP the locked-in analysis, this we We reserves. dynamic to as will estimate still in higher

capital of approximately position will at for contributions LTC. assumption GAAP our levels the a reserves the additional updates, meaningful Fairwind adverse estimate protection remains against and best necessary no excess buffer supporting our capital level between at consistent of Following our statutory that and billion plus events providing $X.X be

moving investments. to now So

are money relatively to ago. $XX.X investment portfolio owned the levels was million where above million. Income X.XX%. Miscellaneous flat yield quarter alternative income $XX.X assets We of to third new our see million was invested an at in at yields $XX continue year a environment compared from our

returns. alternative generated has or investment the approximately $XX.X X.X% annualized portfolio in Year-to-date, million

average capital. risk-based XXX% So capital robust approximately traditional is turning company to insurance then holding by our companies is U.S. back at commentary for weighted up $X.X our I'll liquidity The wrap billion. my ratio and

$X income This statutory after-tax in statutory after-tax of billion. to Capital operating over brings third now income $XXX.X again quarter with statutory metrics the strong results million. from benefited operating year-to-date

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

repurchased X a the we million. For of total over shares have quarters of $XXX just at million XXXX, X.X cost

was pandemic. our As the million Drawing dissolve approximately our onto ratio Rick invested during brought the $XXX settled balance assets pre-capitalized slightly sheet. we earlier, and week of described decided raised this our established facility trust facility leverage to

considering share repurchases $XXX quarter. quarter in onetime repurchases around approximately We fourth plan special fourth expect use share to When million incremental the in deployment, or capital total we $X billion for for proceeds these to XXXX. this the

the of the on incredibly months then X results, aspects strategy. have So many our execute business, strong our of first our been reflecting our different to ability year across demonstrating against

exceptional reach fourth robust Our levels year. by and disability premium top X% outlook for businesses our bolsters trajectory the life upward to for sustainability of line our results. and continue the are quarter persistence target ability continues its as exhibit Earnings to X% of high as historically margins growth our of our core sales highlighted to

we XX% raised this, of outlook our on growth last to track for are of Because we XX% achieve that quarter. EPS to

are statutory earnings generate already months cash $X.X $X.X over out into year-to-date which of year, at well X the addition, $X we company our on In billion to billion us laid putting meeting. generation, holding outlook billion to pace

performance an $XXX robust points. RBC target repurchase enhances our significantly to around of fundamentally our XXX anticipation capacity million. goal surpasses ratio also exceeds our this by $X worth contributes It outcomes, original stock our long-term year, capital for This which deployment to of capital featuring billion our that including

positive our of then reflecting is that needed for lastly, are latest contributions update, our further our LTC strong, capital that the no balance block. developments and And including continued sheet results in assumption expectation

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

Richard McKenney

Steve. you, Great. Thank

You was dimensions company. can how third across that customer-focused disciplined take on positive we're balanced, a multiple running the from our quarter comments

fourth which year, Our look sets excellent and done an first months for teams the up X the we XXXX. all-important an as of have quarter through into job

to here your is respond to team questions. The

the ask Q&A operator I'll session. the to So begin

Operator

Scott from first your Barclays. comes And Alex with the of Instructions] line question [Operator

Taylor Scott

I actuarial question just way about statutory had And is could into premium results help to you assumption your find may on way think fourth the increases us these their First review. quarter? the just the relative in

Steven Zabel

Steve. Yes. LTC, around And there to into just let it's dynamics me the specific LTDI, the of of Alex, review and I'll recap so, just statutory are some actuarial kind dynamics. get some then

So and our treated X differently changes they GAAP. we had were made for assumptions, that to basically, very we

success place our on and that kind increase the discussions based first The the increases, had submissions increases was with had expectation are the program for be X on really in what ultimate we last those then, we've reset rate the and program those we just to expectation at that We itself. that fall. And since we we've our had But of approvals regulators didn't going book. -- increased. of have looked around the on

adjustments some those just Then group And that's in margin. in premiums. of they the pretty also reflected value Those of made have of are impacted. to were a and much all mostly cohorts in of kind just persistency period, cohorts quite of are bit the the present our we roughly value Those LTC million that $XXX that earnings of of and those business. that's because uncapped

through So NPR. And period. see for we the in those the NPR increased you basically, would margin, flow the slight which had a reduction

through. the up to just also So those how flow size kind and geography of of those get

those about And of and so we feel how they're good both reflected.

that we on we of we From many best PDR reserves. statutory change in my our the rate statutory more hit, those had or a other of doesn't excess our view have the for analysis, we whether the asset I of on the and massively consider the with plus where we are reserves I between some buffers that comments. our have it's kind impact in may reserves margin, bit did basis, kind based increases mentioned and of that say our little estimate statutory but a and It where adequacy would it create of already the margin, LTC

I think wouldn't how as margins. a view we So reserve change it major statutory to about

Taylor Scott

liquidity cash year. for flow it. like And this a one. and Got pretty stat second strong holding seems company helpful. On earnings That's been have maybe

there. company guys you already at up a a of XQ. bigger built There's think I the the in holding liquidity in dividend buffer you terms have take substantial

guys help and think capital want appreciating that I'd about year just priorities? end the towards just the just could of that more in And provide amount the be but broadly we you and So like deployment. cash of to come up should the have already buyback the interested you think any how about will stepped a up deployment bit,

Richard McKenney

Yes.

bolster about fourth talk to from it I'll a into see to we've the you are the over we the we'll strong over by flow it's just the been cash deployment, mentioned, years, flip last very quarters, quarter, Let's sheet, talk do operating but of about Alex, company deployment that's us Steve now which seen dynamics It's most I to perspective, as get allowed But generated also that's right, fourth specific and accruing. the balance and couple our to we'll accruing to the metrics. in that. see

statutory That and lot what generation strong we us see of a gives flexibility.

first So growth, doing. in. what investing in that core like into putting the businesses foremost, We we're and really we're the

an organic we pace accelerate capabilities, do And buy we'll capital to as on something put like to that the we'd that's well. see to ability bring something basis. And that towards so to if

And share terms that increasing increased is shareholders focused we've done growth, year something relative that increase look over year, we of to then we've on. we and to capital in to both that And always last this of year. repurchase returning and that seen the course the the by dividend and XX%, our front, we're on earlier pace focused on then also the after dividend the

multiple repurchase, so times we pace capital our that reflecting strong And share very we've the about increase a -- share position. talked very at will strong which about

year, that. in deployment. quarter certainly of and we than is deployment, than what fourth that be had of year steady pace the consistent first projecting third into you we'll pretty what in last of when really a the half pace on And about quarter so going happened And the think more we're the a but higher steady

going we PCAPs this that our securities repurchase. a about around bit. a that But that's see think event or pace onetime share enhance to as pre-capitalized steady dissolution redeployment We little of a trust did through of have

of kind we of that's how deployment. So the see picture terms in

maybe you a talk bit the in move fourth could about Steve, those metrics quarter. how little will

Steven Zabel

think it, at at of quarter. the operating operating were Yes. about that And still our for our think by track bit year-end, companies that company dividends Alex, Day. targets way a cash probably I set And Investor that increase. we quite we of lot the would out to is on We will the holding a indicate pull of year-end, in fourth the

So bolster good the RBC year-end probably company set of quite that down would I will Day. are go holding Investor some back those at But bit. cash. a We'll say indicators, for XXXX pretty targets we

Operator

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

Wesley Carmichael

group Could think pool some of a continuing see like turn you tailwind? favorable just that a looking understand if at the be could you that's On to that recovery longer-term point, quarters? to Do more like people over getting if expecting to talked recoveries is about an even continue. forward few disability, likely I'm And trying smaller.

Steven Zabel

Steve, The take really group is and people to operating one. current Yes, the we work, say of performance think within sustainable. disability level back comment get was meant our to that ability to I'll

and benefit recoveries level was based a just achievable XX%. And going of south reversion really ratio on seen we've so that. XX% this of see the of We is quarter, our think don't forward

benefit right expectation the going XX% pricing the about think But into go and in market As might pricing dynamics the remainder we talked as now, we adjust that forward. still around how question the is we year. just the a in ratios the good and of past, becomes

Wesley Carmichael

around that at experience quarter. could the That's LTC, sounds you're helpful. And you seeing by down what trends? the any slowed help you But in with just in terms your period. like pace partially it of think Yes. recent large imagine if and least informed cohorts. I between don't on that I was incidents us differs this assumption And unlocked It any

Steven Zabel

other Yes. of And adjust that -- No, kind didn't assumptions. I we any that's good. by really I validated omission,

our lapse at generally the looked what experience, experience material. mortality felt we we've any not So would incidence that longer-term in experience, seen clearly with last way we assumptions adjust comfortable year over

So over the we did last incidents look year. at

years really was it to right, X close You're now. back elevated going

and just see inventories down this to closer saw types third economic of we that continued have I'd slow to our kind little of incidents continue dissipate whereby to trend in diverge year, bit, of expectation slowed continue the is. We our quarter performance long-term to saw we say a the continue that what but down. it

it comes differently Obviously, and so a has the cohorts of through continuing. quarter-to-quarter, trends good bit bit a little those feel the little but trends that impact about and

So longer-term our incidents. good with assumption based claims that, we on felt around

Operator

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

Thomas Gallagher

have in Steve, in you looks you're few you disability and I you're go your seeing group for what particularly about, good, going guess, I group the thinking quarters. renewals? like? landscape results competitive are your really Is on and were life been margins referencing business. there pressure pricing, think, to on depending emergence the when rate, Clearly, what the where Can last about talk

Christopher Pyne

standpoint. customers to been our It by there, persistency Tom, in of have we've And question. is capabilities are execution the renewing about has that talked it's the we're expect from Chris. what we like good. and out obviously, for Thanks as business We're that competitive case an engaged thrilled nice doing case. combination with fair past, pricing,

active discipline when increases still if appropriate. and appropriate rate around our with reduction rate We're

stability. long-term like customers Our

like we way. more and a feel can that continue long of you good to that term. triangulate pricing have, return we We fair can here the do get do the for the are kind capabilities So here is around

So a of task sure hard new at that is a of is making that bit the team renewal combination and business comes a pricing our commentary, and together.

Thomas Gallagher

you've are to been you Can a saying hear very a and in provide you've this how risk potentially is review, and done do willing for you buybacks, more to at color so don't bit process access drive long-term Maybe But sources higher what little terms Or guys for what you to a that's been a added because on capital? up it And the now, confident sheet additional change. further of dissolution behind -- I you. going you balance a going Got for scenes after guess a and marks in then you the what's now, and thorough get driving until think and I about know, is you've not the buyback. confidence? here? of of XQ measured maybe little going care I PCAPs Is this are what's decision? to you're just it of just need away look color more thought bit transfer

Richard McKenney

in Yes. Tom, maybe kick ask to well. Steve as I'll start and

is One what you cash flow is time, things going up just in I seen. we've the a see confidence built generation that what lot X we've over of think on.

look and very so pace. I this been share we've do to say at And we're at we think repurchase, going to consistent

so seen pace we've that And increase.

you optimize in at expect continuing repurchase a share million of of the job so balance different you in did PCAPs third And really can the similar as done The good underlying $XXX the the sheet. quarter, to the third we quarter, looking fourth in and a has team quarter and saw then a amount evaluation. really

out the with can look debt over can go structure back several and like recently, dissolution we've last the years, I to done I the the most done things they've to actually work lengthen what PCAPs, that. the overall but

done. a of Don't terms lot will what that or won't into in do we've elsewhere. much we've very we of positive too things So read -- it what

a just much perspective, business. that it ongoing strength have in on. a little the outlook the the been this of the dialing we we've is very and the strength just bit course from repurchase that seen we've given share that up think I We're

Steven Zabel

in that of different is is with Yes. We clearly, helpful. from the XXXX. we history on just the back And much thing bit a issued a in I only Tom, say were environment other an I'd PCAP, uncertainty that little think, pandemic.

at strengthening looking were through also sheet We of PDR. LTC the things and kind balance the like working

issue we just environment smart get able in capital, so to And point at to we the that at was in contingent some time, thought that it pretty benign a time. were and

and just made acute the most use for would happened. kind capital and of And I that company. would the debt, and about and use thinking ahead and go shares progression and say efficient equity our the efficient wasn't capital capital structure just strength And is the so capital back that be capital lower. most balance decision to probably on buy we bring the cost go of structure really our the be of generate going which efficient this there the sheet, has of what's of from to kind those thought we ahead to nothing most It's shift cash

just move. we smart thought a it So was

Operator

Your Ryan Krueger question line of KBW. the from next with comes

Ryan Krueger

to improve growth going talk sales Colonial you into growth bit little the causing the some what's Can of potential the challenges a XXXX? at and about

Richard McKenney

Tim?

Timothy Arnold

This Yes, Ryan. Thanks. Tim. is

our sales sales when look in details growth existing the at X%. down been you sales, the the headwinds for the year, Colonial for the So existing quarter in Life, have third clients really and in from

X/X those our represent reminder, of a about sales annual As sales.

challenges have persisted So those all year.

priorities and at I executing our who one believe, President a search. execution our largely, an identified growth. strong internal led issue. national really named outstanding regions candidate after We Sales -- new of strategic has of is recently to it's a X-month Vice the Senior We an

so And that have the she excited her team going on that about impact will forward. and we're

the encouraged value by prop overall. remain We

New sales group large and with portfolio. product X.X%. market strong quarter case in growth the the our had were commercial We extremely up in

So we're really happen in team that sales right will from new our the getting and that SVP direction sales again, and it's the existing clients 'XX. moving the the confident make about in and Ashley

Ryan Krueger

benefit talk you then I you I what point? last X and Can of elevated supplemental what had a earnings business at And voluntary the you're good in And -- do for of you've voluntary seeing somewhat the ratios about as quarters. last this run think X rate guess, view there?

Steven Zabel

got voluntary kind when and business there. embedded business, within in at there's actually of benefits. individual even benefits voluntary our supplemental Yes, you Steve. income is benefits, businesses voluntary our look We've dental this our and embedded Yes, business our and disability

went time lines business, bounce little There's our back there. quite in X, kind quarters of and the looked we specifically to over tend a dental to period-to-period And those tend last what of in few X all and bit. and in they voluntary benefits lines. product in is see around We volatility a

of a we've of are of I seen. results the probably And just historically of rate the that those range end into this much both had of read quarter, it. good that I the of think were the it pretty the at that happens lower And wouldn't indicator we've so business. kind too kind run

with, million good maybe a like number probably range $XXX think volatility. is pretty quarter of period-to-period So per said, kind like I

Operator

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

Joel Hurwitz

I Unum sales. wanted to U.S. on start

provide mid-teens sounds achieve you're on just I more X% QX because So think you you Can like you're of XX% confident low that growth. your imply like it growth to year the the what color that to seeing just end need achieving sales full something for would in target.

Christopher Pyne

thanks for is Joel, This question. Yes, Chris. the Yes.

and So quarter. we're the volatile coming small off again,

the the also course, in you number really We nice both quality uptick, of particularly been, year. the end in RFPs, of of a when also And terms watching the RFPs, we're of market upper at through the look pipeline course but have encouraged. of of

year, So on leave around capabilities we're more are up and with our and connectivity to that throughout the important customers platforms management HCM building the and working our that we've course been of and other match cases capabilities more brokers. the around

gives that a we're seeing through. and ratio, for chance This high close us better play

biggest of do year. the lot We quarter about you is work a the fourth know small. a obviously, the of do. of you to business large more The end And have than lot the the

the putting capabilities the still the well executing way and work, very finishing we in market, but we about. So on plan we're are together strong are hard and that range prospects teams that you in at resonating is and talked confident

Joel Hurwitz

over been several you just U.S. seen And it's renewals, similar Great. Okay. what are With expecting to the persistency, strong also you've seeing very past on the quarters? maybe in Chris, persistency or then,

Christopher Pyne

been lot thrilled Yes. of I appreciate and persistency fact time. we think the that that us Obviously, a long with do do in loyal we're has a for remain customers good, the cases, 'XX. saw kind or we fewer increase an that There little demand 'XX of been post-pandemic activity have of marketings in of terms in a in in might pent-up bit some that time.

some story through. there pressure than the together. work going price. our sales different It's some on overall testing to out companies again, there a a 'XX going It good, and So be We're in is though, capabilities, book. in the of new hanging And that think, a does put are perspective. testing I from market are That's little that to good feel 'XX, 'XX. bit it year

Operator

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

Suneet Kamath

My quarter. come is out on in the understanding there's the that industry quarter long-term is that has out fourth in care fourth coming study an either

that And takeaways you've there how fourth your if if if review? seen any it curious at that? that Just assumption does come from out, are impact and all would quarter

Steven Zabel

fourth I not We industry my To there additional third hasn't quarter were GAAP say If use data data our that through quarter going into Yes. set in been the assumption review. our knowledge, quarter did we review. when come fourth something using any we'll going we same we over vast has added good for be really of anything of have we to and that review, would that that the out. the feel does come statutory data bit our book assumption and used our the that on understand next sure more make had. implications year, the and just about confirmed But year, we'd any set. our may really our want majority data business. experience process little we just set last assumptions it We've that a out utilizing to

out. fourth when our see it sort I don't driving So quarter that if of and any of in comes view change

Suneet Kamath

it. Got

I I you're Okay. And of with risk then still in you guess, LTC. terms transfer. mean at it mentioned sticking

-- in blocks the deep you're that any how market And counterparties these give of interested business? if of then if curious is conversations the the change in are sort sort having? of could you there's of maybe in of that any terms on just like that Just commentary types

Richard McKenney

Risk transfer, sense for in interested we much to and very still pursue were clear very were we makes continue *Sure, as on, it. to us Suneet.

the looking we between a a That they be about deal dialogue. be there the multiple counterparties very really continues and how of change. counterparties. talked We've seen change, think terms ways the be haven't multiple active X to dramatic to a may to In done at business

parties interested with in clearly associated the over I and there long-term the horizon. interested care also you think out have what they see assets

at stay to So we're going it.

think we continue in been terms I something. consistent also to very as difficult how we've the deals of see we've and to these do. do to said, approached market ability are we've and there But what out the

still very the have buyers meet making and sellers sure price that makes to is we're active we way a on. and sense do so us And can structure so in something

Operator

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

John Barnidge

for to transfer, it to not the about maybe risk how can run pursue were a take you would you If policy talk long off?

Richard McKenney

Yes.

be clear, the the pursuing about can just But very block -- are dynamics risk we are talk transfer. you to So of duration... maybe we Steve,

Steven Zabel

we've for multi-decade I we Yes. I that to LTC book don't say disclosed this a suffice the I mean know -- publicly a duration like book. our runoff this that mean, around LTC. business type of of is of

point looking So deal. that at I probably salient a is transfer when the we're risk here think

as Rick feel book said, this We else we managing ourselves. do. good about ourselves. feel about strategically with running But this book it's everything good We just aligned not

we impacts to things that equal being know risk, like would so it the right valuation. transfer our price, all And for we

able understanding being we and But also and about projections feel our want to to very it. so And our it. we be good book about smart manage

still look and sense. it and think a to that So were price to be we able but if doing at through, made when that something, has we just price contemplate definitely discovery would at

John Barnidge

quarter positioning leaves the HR the helpful. in view winning maybe platforms. business Very Connect case question, tech are be large for follow-up as market following others to And their how you suit you Can connectivity systems and seem own how my fourth the and and and management winning well? you're talk building

Christopher Pyne

when Chris, real platform decision, people human cornerstone they that management John. the run one lot decisions company of they becomes focus from that how that a want make their our ecosystem And around make the again. on got of you've capital big Yes. that prospects a it. choose. Yes, larger perspective. There's Thanks, customers they it's to and company where

investments, intentional that's quite Our I some for are been which think at We've important. multiyear, and this time.

robust ecosystem investments very in way. Our feed that into a

leave element. elements the not benefits, kind administrative but of You the attach also only of

HR our and very there. into build to designed Connect been has initiative connect well leave total Our

a really the a solves as robust problem the, employers for that punch said, ecosystem they that plays want. So X-two and it's into I big

of offering. is still products on continue well. And approach we've what continue protection We proposition bigger a our sales to on runway want and wonderful to it's At services the that capabilities bigger and to it's insurance core, enhance financial we got that fit a and and we've the though, a got that really part long, winning been add So each that add. can bundled quarter. we and can designs where execute,

Operator

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

Mark Hughes

change How growth? Does overall U.S. in XQ. that perhaps about deceleration any through of kind growth? the you see natural the was quarter? reasonably did steady Any trajectory And in influence the that

Steven Zabel

Yes, in reasonably this is Steve. Yes, just X%. quarter. I would steady say over third it was It the was

had back, of post-pandemic up were bit periods go growth X%, a that If time you little the or maybe more. gotten when during to there pandemic

would very wage So I lot it's kind inflation, also strong were it more. A of but tailwind. during was creating quite of a a bit seeing of of was periods that say employment. we normalized

Our X% impact expectation been and would growth X% of every going have that our between might kind year. and historically, forward that

Mark Hughes

next positioning of year anything is should kind rate those your you up how to or this markets see that the competitive growth, of allow keep has Or and in international the period, growth? structural a been Then Yes. goes. good we'll

Richard McKenney

I going to over I'm question. Mark, appreciate Till. to Mark it turn the

Mark Till

operating business very the market Competitive writing. and proposition, that's been the the about different brokers, we've with is which at strengthen that the very fundamentally position similar. We've quality new investing had of moment. in in hard nothing relationships in There's we've the reflected the been been that we're in the

it feel that remaining market been is attractive. at I and making we've the choices moment, confident the the So, still is

Operator

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

Jamminder Bhullar

been on average results And it have seems So been have the the like just years, pretty well. most answered. than strong better expecting margins last couple were But disability obviously, business, your term. of competitors my as the remain in you're over questions to near your of

revert that But year out, we the be in or the market years you to X to what the where are used before? pre-pandemic, be might like eventually that won't gives a what maybe versus margins confidence dynamics now different

Steven Zabel

variables say benefit of in itself. this to I And is sustainable. to group are would Jimmy, would that claims confidence about lot we experience comes work just fundamentally, of levels ratios. the a there's One we of of Steve. productive back those disability getting performance I it when have Yes, is the recovery back think a way kind people say that

know We happened. what we've business done operations that's those why our know within We to drive results.

question So are lot I of sustainable. we've know of becomes pricing a And kind I confidence a that market think those And have Chris, what the then kind reiterate. of covered this, we from will the but perspective. do to just

Christopher Pyne

gets Jimmy, and HR again, connectivity from them. to that. and that's the customers, relationship having ecosystem to When back other an it fit add, we important broader Happy a to with platform we're and challenges you're the Connect our management, solving around leave

it's a still a can opposed hey, price, experience the but you to can lowest market commodity conversation you That of this important, as more is very long-term level. much theme to, stability around drive it's price and type

towards moved current slowly. challenging slowly. I times, down So you when more you've we're recovering price more in the up in you think balance And of kind move more good you're and when times,

good So work prop for a balanced long-term time the for will see we the do value future. approach that

Jamminder Bhullar

price getting a had you seems on increases, maybe long-term ratio care, but gotten last year. obviously like that's has then it charge the worse. been the then, And Okay. And since premium net positive, you've so

reserves the someone nearing to business a the what again? to sort it potential raise or from that monitor So in assess can of outside not whether need is you're

Steven Zabel

thing $XX say And points would up our that, to about just but XX get didn't context, go and of adjustment there, we the into of basis points. of of million kind to up, that did this did About into that made it by about XX put and that that the the details persistency. GPV. was basis kind group to think I I of go NPR period Yes. the represents

pretty about in reserve So pretty how small adequacy we drive changes moves that can NPR. think big in some

increasing impacts the the So in NPR. have or year last seen of so the increasing or the the over you -- definitely higher claims GPV incidents

monitor So a that. good kind I just the movement think thing to of that's of still

generally say, Closed just the I'd business the within also expectations earnings periods. the the And is, gone or that has well flows depends just it experience in at the of forth Block say how speaking, NPR either it I'd what is on that that really down NPR. absolute and the the beginning financials year. through set range cohorts the hits of which also we

absolute of What's on Are the I So comes by NPR the and period? earnings doing increase? the rate executing things. it we business back what for our to during large, and think those the line

Operator

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

Unknown Analyst

the come been It's keep of but Group just that Nick we robust And from touch confidence us on dynamic? results? well, that Or answered the to on have purely this Most just as into should expectation be for wanted should Elyse. driving just there 'XX Life 'XX? and see see what's a seeing we mine should this is

Steven Zabel

Yes, a Steve. of And have life block. relatively this nature block, that. of tough is to small just actually predict because group the it's cover a the one we and the I'll product,

What So over volatility there on is can see block. seen several the we've really that quarters you just good last incidents period-over-period. some

quarter planning Investor time. look fourth fourth in we're seeing, kind is over What feel decent playing into like the We'll can kind give be as get the we look we how Day volatile that we the And into as we guidance ratio that benefit of XX% XXXX. still metric a for at quarter. of through is

So I any guidance of that there. get don't really want and to ahead give

that probably it bit. to we least term, again, the use. But is at bounce can XX% little in a think, estimate short a But good around

to sometimes predict. harder it's So

Operator

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

Richard McKenney

us Great. -- in your to interest everyone this appreciate for Thank much appreciation continued morning want and for I Unum. you. joining

good. results, Third quarter very

We are up XXXX. very as looking focused the year on the wrap we into and fourth quarter

be will around. We

quarter. course our a Looking you. fourth of forward quarter with connecting the And call. number to of will you this once conclude XXXX the over Thank again, third

Operator

for gentlemen, concludes today's Thank Ladies all that and you call. joining.

now may disconnect. You

Unum (UNM) 30 Oct 242024 Q3 Earnings call transcript