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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
We have three principal operating segments: Unum US, Unum International, and Colonial Life. Our other operating segments are Closed Block and Corporate.

The Unum US segment is comprised of group disability, group life and accidental death and dismemberment, and supplemental and voluntary lines of business. The group disability line of business includes long-term and short-term disability, medical stop-loss, and fee-based service products. The supplemental and voluntary line of business includes voluntary benefits, individual disability, and dental and vision products. These products, excluding medical stop-loss which is no longer actively marketed as of the third quarter of 2024, are marketed through our field sales personnel who work in conjunction with independent brokers and consultants.

The Unum International segment is comprised of our operations in both the United Kingdom and Poland. Our Unum UK products include insurance for group long-term disability, group life, and supplemental lines of business which include dental, critical illness, and individual disability products. Our Unum Poland products include insurance for individual and group life with accident and health riders. Unum International's products are sold primarily through field sales personnel and independent brokers and consultants.

The Colonial Life segment includes insurance for accident, sickness, and disability products, which includes dental and vision products, life products, and cancer and critical illness. These products are marketed to employees, on both a group and an individual basis, at the workplace through an independent contractor agent sales force and brokers.

The Closed Block segment consists of group and individual long-term care, and other insurance products no longer actively marketed. We discontinued offering individual long-term care in 2009 and group long-term care in 2012. Other insurance products include individual disability, group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous product lines.

The Corporate segment includes investment income on corporate assets not specifically allocated to a line of business, interest expense on corporate debt, and certain other corporate income and expenses not allocated to a line of business.

Premium income is primarily derived from sources in the United States, the United Kingdom, and Poland. There are no material revenues or assets attributable to foreign operations other than those reported in our Unum International segment.

Our Chief Executive Officer is the Chief Operating Decision Maker (CODM). Our CODM evaluates the performance of our segments on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss". The significant expense categories and amounts included within "adjusted operating income" or "adjusted operating loss" align with the segment level information that is regularly provided to the CODM. We believe adjusted operating revenue and adjusted operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. As such, the CODM uses these performance measures to evaluate profitability, assist in resourcing decisions, and monitor budgeted versus actual results. These performance measures are in accordance with GAAP guidance for
segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, net income, or net loss.
Segment information is shown below.

Year Ended December 31
202420232022
(in millions of dollars)
Premium Income
Unum US
Group Disability
Group Long-term Disability$2,086.1 $2,057.2 $1,911.7 
Group Short-term Disability1,084.0 1,012.3 926.3 
Group Life and Accidental Death & Dismemberment
Group Life1,784.7 1,679.0 1,669.1 
Accidental Death & Dismemberment186.1 175.5 173.7 
Supplemental and Voluntary
Voluntary Benefits879.2 850.1 833.7 
Individual Disability566.0 527.0 461.1 
Dental and Vision297.1 278.1 275.8 
6,883.2 6,579.2 6,251.4 
Unum International
Unum UK
Group Long-term Disability418.0 396.1 376.9 
Group Life211.3 169.3 138.2 
Supplemental165.6 141.5 114.0 
Unum Poland154.6 118.3 89.7 
949.5 825.2 718.8 
Colonial Life
Accident, Sickness, and Disability969.5 946.1 948.9 
Life458.0 426.5 401.1 
Cancer and Critical Illness356.4 353.5 352.0 
1,783.9 1,726.1 1,702.0 
Closed Block
Long-term Care696.1 696.0 697.4 
All Other184.7 219.5 246.9 
880.8 915.5 944.3 
Total Premium Income$10,497.4 $10,046.0 $9,616.5 
Year Ended December 31, 2024
Unum USUnum InternationalColonial LifeClosed BlockCorporateTotal
(in millions of dollars)
Premium Income$6,883.2 $949.5 $1,783.9 $880.8 $— $10,497.4 
Net Investment Income632.2 128.8 161.5 1,148.9 58.6 2,130.0 
Other Income235.9 1.6 4.0 51.7 1.3 294.5 
Adjusted Operating Revenue$7,751.3 $1,079.9 $1,949.4 $2,081.4 $59.9 $12,921.9 
Adjusted Policy Benefits1
$4,246.5 $693.6 $885.4 $1,629.6 $— $7,455.1 
Adjusted Policy Benefits - Remeasurement Loss (Gain)2
(238.2)(44.4)(34.7)112.4 — (204.9)
Commissions729.3 82.5 378.4 68.4 — 1,258.6 
Interest and Debt Expense— — — — 201.1 201.1 
Deferral of Acquisition Costs
(320.9)(17.8)(312.8)— — (651.5)
Amortization of Deferred Acquisition Costs292.5 9.5 219.0 — — 521.0 
Other Segment Items3
1,602.9 198.7 347.4 133.2 50.0 2,332.2 
Adjusted Benefits and Expenses
$6,312.1 $922.1 $1,482.7 $1,943.6 $251.1 $10,911.6 
Adjusted Operating Income (Loss)$1,439.2 $157.8 $466.7 $137.8 $(191.2)$2,010.3 
1Excludes the impact of non-contemporaneous reinsurance in the Closed Block segment.
2Excludes the reserve assumption updates for each reportable segment, except for the Corporate segment, that occurred during the third quarter.
3Excludes the amortization of the cost of reinsurance in the Closed Block segment and the loss on legal settlement in the Corporate segment. For each reportable segment, other segment items includes compensation, other personnel expenses, taxes, licenses and fees, depreciation, intangible asset amortization and other expenses. Depreciation and intangible asset amortization during 2024 was $85.0 million, $17.9 million, $15.1 million, $5.4 million, and $0.1 million for our Unum US, Unum International, Colonial Life, Closed Block and Corporate segments, respectively.
Year Ended December 31, 2023
Unum USUnum InternationalColonial LifeClosed BlockCorporateTotal
(in millions of dollars)
Premium Income$6,579.2 $825.2 $1,726.1 $915.5 $— $10,046.0 
Net Investment Income639.9 137.2 153.5 1,066.3 99.8 2,096.7 
Other Income220.5 1.6 1.2 52.6 3.3 279.2 
Adjusted Operating Revenue$7,439.6 $964.0 $1,880.8 $2,034.4 $103.1 $12,421.9 
Adjusted Policy Benefits1
$4,221.2 $581.4 $877.1 $1,597.4 $— $7,277.1 
Adjusted Policy Benefits - Remeasurement Loss (Gain)2
(283.9)(19.5)1.7 69.7 — (232.0)
Commissions664.4 72.5 359.4 73.8 — 1,170.1 
Interest and Debt Expense— — — — 194.8 194.8 
Deferral of Acquisition Costs(314.7)(14.6)(302.9)— — (632.2)
Amortization of Deferred Acquisition Costs267.6 8.4 205.4 — — 481.4 
Other Segment Items3
1,529.5 177.7 340.0 128.6 54.7 2,230.5 
Adjusted Benefits and Expenses
$6,084.1 $805.9 $1,480.7 $1,869.5 $249.5 $10,489.7 
Adjusted Operating Income (Loss)$1,355.5 $158.1 $400.1 $164.9 $(146.4)$1,932.2 
1Excludes the impact of non-contemporaneous reinsurance in the Closed Block segment.
2Excludes the reserve assumption updates for each reportable segment, except for the Corporate segment, that occurred during the third quarter.
3Excludes the amortization of the cost of reinsurance in the Closed Block segment. For each reportable segment, other segment items includes compensation, other personnel expenses, taxes, licenses and fees, depreciation, intangible asset amortization and other expenses. Depreciation and intangible asset amortization during 2023 was $76.3 million, $14.6 million, $13.6 million, $5.2 million and $0.6 million for our Unum US, Unum International, Colonial Life, Closed Block and Corporate segments, respectively.
Year Ended December 31, 2022
Unum USUnum InternationalColonial LifeClosed BlockCorporateTotal
(in millions of dollars)
Premium Income$6,251.4 $718.8 $1,702.0 $944.3 $— $9,616.5 
Net Investment Income676.3 170.1 152.7 1,070.6 52.5 2,122.2 
Other Income196.3 0.9 1.1 58.0 4.8 261.1 
Adjusted Operating Revenue$7,124.0 $889.8 $1,855.8 $2,072.9 $57.3 $11,999.8 
Adjusted Policy Benefits1
$4,429.6 $521.6 $926.6 $1,620.5 $— $7,498.3 
Adjusted Policy Benefits - Remeasurement Loss (Gain)2
(287.9)35.6 (45.3)2.8 — (294.8)
Commissions614.4 56.3 340.0 75.7 — 1,086.4 
Interest and Debt Expense— — — — 192.7 192.7 
Deferral of Acquisition Costs(273.1)(12.0)(271.8)— — (556.9)
Amortization of Deferred Acquisition Costs240.9 8.2 172.0 — — 421.1 
Other Segment Items3
1,427.5 146.1 321.4 122.0 28.9 2,045.9 
Adjusted Benefits and Expenses
$6,151.4 $755.8 $1,442.9 $1,821.0 $221.6 $10,392.7 
Adjusted Operating Income (Loss)
$972.6 $134.0 $412.9 $251.9 $(164.3)$1,607.1 
1Excludes the impact of non-contemporaneous reinsurance in the Closed Block segment.
2Excludes the reserve assumption updates for each reportable segment, except for the Corporate segment, that occurred during the third quarter and the impact of non-contemporaneous reinsurance in the Closed Block segment.
3Excludes the amortization of the cost of reinsurance in the Closed Block segment. For each reportable segment, other segment items includes compensation, other personnel expenses, taxes, licenses and fees, depreciation, intangible asset amortization and other expenses. Depreciation and intangible asset amortization during 2022 was $75.7 million, $14.4 million, $15.0 million, $4.7 million, and $0.6 million for our Unum US, Unum International, Colonial Life, Closed Block and Corporate segments, respectively.

December 31
20242023
(in millions of dollars)
Assets
Unum US$14,981.6 $15,561.1 
Unum International3,291.3 3,372.9 
Colonial Life4,964.2 4,830.4 
Closed Block33,376.0 35,272.8 
Corporate5,346.2 4,218.0 
Total Assets$61,959.3 $63,255.2 

We report goodwill in our Unum US, Unum International, and Colonial Life segments, which are the segments expected to benefit from the originating business combinations. At December 31, 2024 and 2023 goodwill was $349.1 million and $349.9 million, respectively, with $280.0 million attributable to Unum US in each year, $41.4 million and $42.2 million, respectively, attributable to Unum International, and $27.7 million attributable to Colonial Life in each year.
We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of investment gains or losses, the amortization of the cost of reinsurance, the impact of non-contemporaneous reinsurance, and reserve assumption updates as well as certain other items as specified in the reconciliations below. We believe adjusted operating revenue and adjusted operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, net income, or net loss.

Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. Investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of investment gains or losses. Although we may experience investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities.

We exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that we recognized upon the exit of the business related to the policies on claim status as well as the impact of non-contemporaneous reinsurance that resulted from the adoption of ASU 2018-12. We believe that the exclusion of these items provides a better view of our results from our ongoing businesses.

During the third quarter of 2024, we incurred a loss of $15.3 million within our Corporate segment for the settlement of an employment-related matter. $4.9 million of the loss is recorded within compensation expense and $10.4 million of the loss is recorded within other expenses within the consolidated statements of income.

Cash flow assumptions used to calculate our liability for future policy benefits are reviewed at least annually and updated, as needed, with the resulting impact reflected in net income. While the effects of these assumption updates are recorded in the reporting period in which the review is completed, these updates reflect experience emergence and changes to expectations spanning multiple periods. We believe that by excluding the impact of reserve assumption updates we are providing a more comparable and consistent view of our quarterly results.

We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability.

See above and Notes 3, 6, and 14 for further discussion regarding the items specified in the reconciliation below.
A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows:
Year Ended December 31
202420232022
(in millions of dollars)
Total Revenue$12,887.3 $12,385.9 $11,984.1 
Excluding:
Net Investment Loss(34.6)(36.0)(15.7)
Adjusted Operating Revenue$12,921.9 $12,421.9 $11,999.8 
Income Before Income Tax$2,251.3 $1,640.1 $1,750.0 
Excluding:
Net Investment Loss(34.6)(36.0)(15.7)
Amortization of the Cost of Reinsurance(41.4)(44.1)(50.3)
Non-Contemporaneous Reinsurance
(25.1)(34.8)(34.4)
Reserve Assumption Updates357.4 (177.2)243.3 
Loss on Legal Settlement(15.3)— — 
Adjusted Operating Income$2,010.3 $1,932.2 $1,607.1