Other

9 Months Ended

Sep. 30, 2023

Debt and Other Disclosures [Abstract]

Income Tax Disclosure

Income Tax

In August 2022, the Inflation Reduction Act (IRA) was signed into law in the U.S. and includes certain corporate tax provisions effective January 1, 2023. The IRA imposes a new 15 percent corporate alternative minimum tax (CAMT) on adjusted financial statement income (AFSI) on corporations that have average AFSI over $1.0 billion in any prior three-year period, starting with years 2020 to 2022. We anticipate that our company will be an applicable corporation. We have not recorded any CAMT as of September 30, 2023. We do not expect that any CAMT incurred would impact earnings since it would be offset with a credit toward regular income tax in subsequent years.

Allowance for Expected Credit Losses on Premiums Receivable

Allowance for Expected Credit Losses on Premiums Receivable

At September 30, 2023, June 30, 2023, and December 31, 2022, the allowance for expected credit losses on premiums receivable was $29.7 million, $28.7 million, and $32.5 million, respectively, on gross premiums receivable of $626.6 million, $660.3 million, and $557.6 million, respectively. The increase in the allowance of $1.0 million during the three months ended September 30, 2023, was driven primarily by an increase in premium due to be collected in the Unum US and Colonial segments. The decrease of $2.8 million during the nine months ended September 30, 2023, was driven primarily by improvements in the age of premiums receivable.

At September 30, 2022, June 30, 2022, and December 31, 2021, the allowance for expected credit losses on premiums receivable was $31.4 million, $34.3 million, and $34.2 million, respectively, on gross premiums receivable of $561.1 million, $593.4 million, and $530.7 million, respectively. The decrease in the allowance of $2.9 million and $2.8 million during the three and nine months ended September 30, 2022, respectively, was driven primarily by an improvement in the age of premiums due to be collected. Also contributing to the decline in the allowance during the three months ended September 30, 2022 was a decline in the gross receivable balance.