Other

9 Months Ended

Sep. 30, 2026

Debt and Other Disclosures [Abstract]

Debt

Credit Facilities

In November 2026, Provident Life and Accident Insurance Company (Provident), one of our traditional U.S. life insurance subsidiaries, entered into a five-year senior standby letter of credit facility to support potential funding obligations under the experience volatility cover related to the 2026 Fortitude Re reinsurance transaction with an initial commitment of $139.1 million, and annual increases up to a maximum of $172.4 million. The facility has an initial maturity date in November 2031 and is automatically extended annually for an additional twelve-month period, unless terminated. If the letter of credit is drawn, reimbursement would have interest based on the prime rate. As of the date of this filing, a letter of credit totaling $139.1 million had been issued.

In July 2026, we terminated our five-year, £75.0 million senior unsecured standby letter of credit facility, which was originally set to expire in December 2028. Also, our additional five-year, £75.0 million senior unsecured standby letter of credit facility expired, as scheduled, in July 2026. There were no borrowed amounts outstanding at the time of termination or expiration of these facilities.

Also in July 2026, we entered into a new five-year, £75.0 million senior standby letter of credit facility pursuant to which a £75.0 million letter of credit was issued in favor of Unum Limited (as beneficiary), our U.K. insurance subsidiary, and is available for borrowings up to £75.0 million until its scheduled expiration in July 2031. The credit facility provides for borrowings at an interest rate based on the Sterling Overnight Index Average rate. The credit facility may be collateralized by cash and eligible securities, including asset-backed securities, agency securities, corporate bonds and U.S. Treasury securities. As of September 30, 2026, the credit facility has not been collateralized. As of September 30, 2026, there were no borrowed amounts outstanding under the credit facility.

In April 2026, we entered into a senior letter of credit facility pursuant to which a £50.0 million letter of credit was issued in favor of Unum Limited (as beneficiary). The facility provides for drawings up to £50.0 million until its scheduled expiration five years after issuance of the letter of credit and no later than July 2031. The credit facility provides for borrowings at an interest rate based on the Sterling Overnight Index Average Rate. The credit facility may be collateralized by cash and eligible securities, including U.S. Treasury securities. As of September 30, 2026, the credit facility was fully collateralized. As of September 30, 2026, there were no borrowed amounts outstanding under the credit facility.

In April 2025, we and certain of our traditional U.S. life insurance subsidiaries, Unum Life Insurance Company of America (Unum America), Provident, and Colonial Life & Accident Insurance Company, amended and restated the terms of our existing credit agreement providing for a five-year $500.0 million senior unsecured revolving credit facility with a syndicate of lenders. The revolving credit facility, which was previously set to expire in 2027, was extended through April 2030. We may request that the lenders’ aggregate commitments of $500.0 million under the facility be increased by up to an additional $200.0 million. Other of our domestic wholly-owned subsidiaries are permitted to join the credit facility as borrowers, subject to certain conditions. Any obligation of a subsidiary under the credit facility is subject to an unconditional guarantee by Unum Group. At September 30, 2026, there were no borrowed amounts outstanding under the revolving credit facility and letters of credit totaling $1.3 million had been issued.

Borrowings under the credit facilities are subject to financial covenants, negative covenants, and events of default that are customary. The credit facilities include financial covenants based on our leverage ratio and consolidated net worth as well as covenants that limit subsidiary indebtedness and require minimum capital levels.

Junior Subordinated Debt Securities

During the first quarter of 2026, we purchased and retired $7.7 million aggregate principal amount of our 6.250% junior subordinated debt securities issued in 2018 and due 2058.

Income Tax Disclosure

Income Tax

During the third quarter of 2026, we recognized a tax benefit of $188.2 million from the release of unrecognized tax benefits related to a policyholder reserves position taken on our 2017 return following the completion of an Internal Revenue Service exam. The benefit reflects the release of the related unrecognized tax benefit liability of $112.9 million and accrued interest of $75.3 million.

During the third quarter of 2026, we established a valuation allowance that increased income tax expense by $176.2 million related to our deferred tax assets on capital losses, reflecting a change in our assessment of the realizability of these deferred tax assets. Based on expected capital losses associated with the 2026 Fortitude Re reinsurance transaction, we believe it is more likely than not that we will not be able to realize the benefit of these capital losses against future capital gains within the statutory carryforward period.

Allowance for Expected Credit Losses on Premiums Receivable

Allowance for Expected Credit Losses on Premiums Receivable

At September 30, 2026, June 30, 2026, and December 31, 2025, the allowance for expected credit losses on premiums receivable was $26.7 million, $26.9 million, and $26.1 million, respectively, on gross premiums receivable of $737.6 million, $746.7 million, and $579.5 million, respectively. The allowance for expected credit losses was generally consistent during these periods.

At September 30, 2025, June 30, 2025, and December 31, 2024, the allowance for expected credit losses on premiums receivable was $28.0 million, $27.6 million, and $26.8 million, respectively, on gross premiums receivable of $598.9 million, $691.7 million, and $584.1 million, respectively. The allowance for expected credit losses was generally consistent at September 30, 2025 compared to June 30, 2025. The increase in the allowance of $1.2 million during the nine months ended September 30, 2025 was driven by an increase in the age of premium receivable and an increase in gross premiums receivable.

Reinsurance

2026 Closed Block Long-Term Care Reinsurance Transaction

In July 2026, Unum America entered into a master transaction agreement with Fortitude Reinsurance Company Ltd. (Fortitude Re) which resulted in the execution of a coinsurance agreement in November 2026.

This reinsurance agreement reinsures a portion of our Closed Block individual long-term care policies on a coinsurance basis to Fortitude Re effective April 2026. The reinsurance agreement represents approximately 28 percent of total Closed Block long-term care future policy benefits as of March 31, 2026. Upon closing the transaction in November 2026, we transferred fixed maturity securities and cash with a fair value of $5,500.7 million. A final settlement is expected prior to the end of the first quarter of 2027. Fortitude Re intends to retrocede biometric risk on the reinsured block to a highly rated global reinsurer (the Retrocessionaire).

Additionally, at the closing of the transaction, Provident entered into an agreement with the Retrocessionaire whereby Provident provides an experience volatility cover for the difference between actual and expected claim experience, subject to a maximum payment of $125.0 million (in net present value terms). Payment obligations will be settled every five years and are secured by a trust account to be funded at all times with the remaining possible payment by Provident. Provident provided the experience volatility cover in exchange for a payment from the Retrocessionaire of $5.0 million at the closing of the reinsurance transaction. The experience volatility cover is accounted for under the deposit method.

Immediately prior to entering into the reinsurance agreement with Fortitude Re, Unum America recaptured the Closed Block individual long-term care business from Fairwind Insurance Company (Fairwind), an affiliated captive reinsurer.

2025 Closed Block Long-Term Care and Unum US Individual Disability Reinsurance Transaction

In February 2025, Unum America entered into a master transaction agreement with Fortitude Re which resulted in the execution of a coinsurance agreement during July 2025. This reinsurance agreement reinsures a portion of our Closed Block long-term care business and a portion of our Unum US individual disability business on a coinsurance basis to Fortitude Re effective January 2025.

Upon closing the transaction in July 2025, we transferred to Fortitude Re $953.5 million of cash as well as fixed maturity securities with a fair value totaling $3,230.1 million and accrued investment income of $47.1 million. After consideration of the final settlement, the final ceding commission related to this transaction was $442.3 million.

As a result of this reinsurance agreement, we recognized the following:

•Net realized investment loss totaling $46.8 million during the year ended December 31, 2025.

•Reinsurance recoverable of $3,620.5 million comprised of ceded reserves of $3,315.2 million related to the Closed Block long-term care product line and $305.3 million related to the Unum US individual disability product line.

•Cost of reinsurance of $848.2 million related to the Closed Block long-term care product line and a deferred gain on reinsurance related to the Unum US individual disability product line of $145.9 million.

•Write-off of deferred acquisition costs related to the Unum US individual disability product line of $100.3 million which is included as a component of deferred gain on reinsurance.

In July 2025, immediately prior to entering into the reinsurance agreement with Fortitude Re, Unum America recaptured the aforementioned Closed Block long-term care business from Fairwind and assumed the aforementioned Unum US individual disability business from Provident.