Unum Group Reports First Quarter 2023 Results.

CHATTANOOGA, Tenn: Unum Group (NYSE: UNM) today reported net income of $358.3 million ($1.80 per diluted common share) for the first quarter of 2023, compared to net income of $240.4 million ($1.18 per diluted common share) for the first quarter of 2022.

Included in net income for the first quarter of 2023 are the after-tax amortization of the cost of reinsurance of $8.7 million ($0.04 per diluted common share), the after-tax impact of non-contemporaneous reinsurance of $5.7 million ($0.03 per diluted common share), and a net after-tax investment gain on the Company's investment portfolio of $0.1 million (de minimis amount per diluted common share). Included in net income for the first quarter of 2022 are the after-tax amortization of the cost of reinsurance of $10.6 million ($0.05 per diluted common share), the after-tax impact of non-contemporaneous reinsurance of $9.8 million ($0.05 per diluted common share) and a net after-tax investment loss on the Company's investment portfolio of $10.6 million ($0.05 per diluted common share). Excluding the items above, after-tax adjusted operating income was $372.6 million ($1.87 per diluted common share) in the first quarter of 2023, compared to $271.4 million ($1.33 per diluted common share) in the first quarter of 2022.

Effective January 1, 2023, the Company adopted Accounting Standards Update 2018-12 (ASU 2018-12) which amended the accounting and disclosure requirements for long-duration insurance contracts, with changes applied as of January 1, 2021. All prior period operating results and related metrics throughout this document have been adjusted for the impacts of the adoption.

"Our momentum from 2022 carried into the delivery of strong results in the first quarter, with increases in sales and premium across our core operations and performance of our group disability business. Our investments in digital capabilities continue to enable greater reach across employers and drive sustainable growth," said Richard P. McKenney, president and chief executive officer. "Our business thrives in today's environment, and given the strength of our balance sheet, we have flexibility to execute on our strategy of growth and return capital to shareholders."

RESULTS BY SEGMENT

We measure and analyze our segment performance on the basis of "adjusted operating income" or "adjusted operating loss", which differ from income before income tax as presented in our consolidated statements of income due to the exclusion of investment gains and losses, amortization of cost of reinsurance, and the impact of non-contemporaneous reinsurance. Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for income before income tax or net income.

Unum US Segment

Unum US reported adjusted operating income of $312.5 million in the first quarter of 2023, an increase of 85.7 percent from $168.3 million in the first quarter of 2022. Premium income increased 4.3 percent to $1,609.6 million in the first quarter of 2023, compared to $1,543.0 million in the first quarter of 2022. Net investment income decreased 8.0 percent to $157.3 million in the first quarter of 2023, compared to $171.0 million in...