Unum Group Files 10-Q for Quarter Ended March 31, 2024

TL;DR

<b>Unum Group submitted its Q1 2024 10-Q filing on May 1, 2024.</b>

AI Summary

Unum Group (UNMA) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Unum Group filed its quarterly report (10-Q) for the period ending March 31, 2024. The company's fiscal year ends on December 31st. Unum Group is incorporated in Delaware. Its primary business is Accident & Health Insurance. The filing was made on May 1, 2024.

Why It Matters

For investors and stakeholders tracking Unum Group, this filing contains several important signals. This filing provides investors with the latest financial performance and operational details for Unum Group for the first quarter of 2024. It allows stakeholders to assess the company's financial health, risks, and strategic direction in the accident and health insurance sector.

Risk Assessment

Risk Level: medium — Unum Group shows moderate risk based on this filing. The company operates in the insurance industry, which is subject to regulatory changes, economic fluctuations, and competitive pressures that could impact financial performance.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-Q to understand Unum Group's current financial position and future outlook.

Key Numbers

• 20240331 — Period of Report (Conformed Period of Report)
• 20240501 — Filing Date (Filed as of Date)
• 95 — Public Document Count (Conformed Document Count)
• 2024 — Report Year (Report Year)

Key Players & Entities

• Unum Group (company) — Filer
• 0000005513 (company) — Central Index Key
• DE (company) — State of Incorporation
• 1231 (company) — Fiscal Year End
• 6321 (company) — Standard Industrial Classification
• 001-11294 (company) — SEC File Number
• 1 FOUNTAIN SQUARE (company) — Business Address Street 1
• CHATTANOOGA (company) — Business Address City

FAQ

Industry Context

Unum Group operates within the Accident & Health Insurance industry, a sector focused on providing financial protection against medical expenses and income loss due to accidents or illness.

Regulatory Implications

The company is subject to regulations governing the insurance industry, which vary by state and federal jurisdiction, impacting product offerings, pricing, and solvency requirements.

What Investors Should Do

1. Analyze Unum Group's revenue streams and growth trends for its insurance products.
2. Examine the company's financial health, including liquidity and solvency ratios.
3. Review any disclosed risk factors and their potential impact on future performance.

Year-Over-Year Comparison

This filing represents the first quarterly report for Unum Group in the fiscal year 2024, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.10 — ange on which registered Common stock, $0.10 par value UNM New York Stock Exchange

Filing Documents

• unm-20240331.htm (10-Q) — 4449KB
• unm03312024ex101.htm (EX-10.1) — 77KB
• unm03312024ex311.htm (EX-31.1) — 8KB
• unm03312024ex312.htm (EX-31.2) — 8KB
• unm03312024ex321.htm (EX-32.1) — 5KB
• unm03312024ex322.htm (EX-32.2) — 5KB
• 0000005513-24-000095.txt (&nbsp;) — 22561KB
• unm-20240331.xsd (EX-101.SCH) — 83KB
• unm-20240331_cal.xml (EX-101.CAL) — 92KB
• unm-20240331_def.xml (EX-101.DEF) — 600KB
• unm-20240331_lab.xml (EX-101.LAB) — 1116KB
• unm-20240331_pre.xml (EX-101.PRE) — 823KB
• unm-20240331_htm.xml (XML) — 5877KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited): 3 Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 3 Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 5 Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Note 1 - Basis of Presentation 9 Note 2 - Accounting Developments 9 Note 3 - Fair Value of Financial Instruments 11 Note 4 - Investments 26 Note 5 - Derivative Financial Instruments 41 Note 6 - Accumulated Other Comprehensive Loss 49 Note 7 - Liability for Future Policy Benefits 51 N ote 8 - Pol icyholders ' Account Balances 67 Note 9 - Deferred Acquisition Costs 71 Note 10 - Segment Information 72 Note 11 - Employee Benefit Plans 75 Note 12 - Stockholders' Equity and Earnings Per Common Share 76 Note 13 - Commitments and Contingent Liabilities 78 Note 14 - Other 79 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 80 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 117 Item 4.

Controls and Procedures

Controls and Procedures 118

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 119 Item 1A.

Risk Factors

Risk Factors 119 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 119 Item 5. Other Information 119 Item 6. Exhibits 120

Signatures

Signatures 121 Table of Contents Cautionary Statement Regarding Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 (the Act) provides a "safe harbor" to encourage companies to provide prospective information, as long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Certain information contained in this quarterly report on Form 10-Q (including certain statements in the consolidated financial statements and related notes and Management's Discussion and Analysis), or in any other written or oral statements made by us in communications with the financial community or contained in documents filed with the Securities and Exchange Commission (SEC), may be considered forward-looking statements within the meaning of the Act. Forward-looking statements are those not based on historical information, but rather relate to our outlook, future operations, strategies, financial results, or other developments. Forward-looking statements speak only as of the date made. We undertake no obligation to update these statements, even if made available on our website or otherwise. These statements may be made directly in this document or may be made part of this document by reference to other documents filed by us with the SEC, a practice which is known as "incorporation by reference." You can find many of these statements by looking for words such as "will," "may," "should," "could," "believes," "expects," "anticipates," "estimates," "plans," "assumes," "intends," "projects," "goals," "objectives," or similar expressions in this document or in documents incorporated herein. 1 Table of Contents Cautionary Statement Regarding Forward-Looking Statements - Continued These forward-looking statements are subject to numerous assumptions, risks, and uncertain

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (UNAUDITED) Unum Group and Subsidiaries March 31 December 31 2024 2023 (in millions of dollars) Assets Investments Fixed Maturity Securities - at fair value (amortized cost of $ 38,385.4 ; $ 38,410.6 ; allowance for credit losses of $ 2.2 ; $ 2.2 ) $ 36,247.8 $ 36,833.9 Mortgage Loans (net of allowance for credit losses of $ 10.7 ; $ 10.2 ) 2,298.8 2,318.2 Policy Loans 3,579.1 3,620.2 Other Long-term Investments 1,619.8 1,579.4 Short-term Investments 1,601.5 1,610.7 Total Investments 45,347.0 45,962.4 Other Assets Cash and Bank Deposits 279.1 146.0 Accounts and Premiums Receivable (net of allowance for credit losses of $ 30.0 ; $ 29.5 ) 1,594.0 1,543.7 Reinsurance Recoverable (net of allowance for credit losses of $ 1.7 ; $ 1.7 ) 8,843.6 9,108.4 Accrued Investment Income 660.9 633.9 Deferred Acquisition Costs 2,754.7 2,714.5 Goodwill 349.6 349.9 Property and Equipment 483.9 485.3 Deferred Income Tax 519.2 649.4 Other Assets 1,655.8 1,661.7 Total Assets $ 62,487.8 $ 63,255.2 See notes to consolidated financial statements. 3 Table of Contents CONSOLIDATED BALANCE SHEETS (UNAUDITED) - Continued Unum Group and Subsidiaries March 31 December 31 2024 2023 (in millions of dollars) Liabilities and Stockholders' Equity Liabilities Future Policy Benefits $ 38,624.5 $ 40,009.4 Policyholders' Account Balances 5,639.0 5,667.7 Unearned Premiums 470.4 380.2 Other Policyholders' Funds 1,582.4 1,615.7 Income Tax Payable 278.4 190.0 Deferred Income Tax 26.2 27.0 Long-term Debt 3,431.0 3,430.4 Other Liabilities 2,216.4 2,283.4 Total Liabilities 52,268.3 53,603.8 Commitments and Contingent Liabilities - Note 13 Stockholders' Equity Common Stock, $ 0.10 par Authorized: 725,000,000 shares Issued: 195,208,726 and 194,588,625 shares 19.5 19.4 Additional Paid-in Capital 1,548.2 1,547.8 Accumulated Other Comprehensive Loss ( 2,940.0 ) ( 3,308.0 ) Retained Ea

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Unum Group and Subsidiaries March 31, 2024 Note 1 - Basis of Presentation The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2023. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of full year performance. Note 2 - Accounting Developments Accounting Updates Adopted in 2023: ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The amendments in this update eliminated the troubled debt restructuring recognition and measurement guidance and instead required that an entity evaluate whether the modification represents a new loan or the continuation of an existing loan. The amendments also enhanced the disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. In addition, the amendments in this update required that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. The amendments in this update were applied prospectively in the period of adoption as of January 1, 2023. The adoption of this update modified our disclosures but did not have an impact on our financial position or results of operations. ASU 2018-12, Financial Services—Insurance

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Unum Group and Subsidiaries March 31, 2024 Note 2 - Accounting Developments - Continued practical expedients and exceptions when applying GAAP to contracts, hedging relationships, and other transactions affected either by discontinued rates as a direct result of reference rate reform or a market-wide change in interest rates used for discounting, margining or contract price alignment, if certain criteria are met. Specifically, the guidance provides certain practical expedients for contract modifications, fair value hedges, and cash flow hedges, and also provides certain exceptions related to changes in the critical terms of a hedging relationship. The guidance also allows for a one-time election to sell or transfer debt securities that were both classified as held-to-maturity prior to January 1, 2020 and reference a rate affected by the reform. The adoption of this update is permitted as of the beginning of the interim period that includes March 12, 2020 (the issuance date of the update), or any date thereafter, through December 31, 2024, at which point the guidance will sunset. We have elected practical expedients for contracts impacted by reference rate reform which did not result in a material impact on our financial position or results of operations. We will continue to monitor our contracts and hedging relationships throughout the adoption period. ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this update enhance disclosures of significant expenses for reportable segments. Specifically, the update adds a requirement to disclose significant expenses that are regularly provided to the Chief Operating Decision Maker (CODM) and are included in each reported measure of segment profit or loss. This update will require the disclosure of the title and position of the CODM as well as an explanation of how they use the reported measu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Unum Group and Subsidiaries March 31, 2024 Note 3 - Fair Value of Financial Instruments Fair Value Measurements for Financial Instruments Carried at Fair Value We report fixed maturity securities, which are classified as available-for-sale securities, derivative financial instruments, and unrestricted equity securities at fair value in our consolidated balance sheets. We report our investments in private equity partnerships at our share of the partnerships' net asset value per share or its equivalent (NAV) as a practical expedient for fair value. The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. An active market for a financial instrument is a market in which transactions for an asset or a similar asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and should be used to measure fair value whenever available. Conversely, financial instruments rarely traded or not quoted have less observability and are measured at fair value using valuation techniques that require more judgment. Pricing observability is generally impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, and overall market conditions. We classify financial instruments in accordance with a fair value hierarchy consisting of three levels based on the observability of valuation inputs: Level 1 - the highest category

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