| Long-Duration Insurance Contracts Disclosure |
Liabilities for future policy benefits represent the cost of claims that we estimate we will eventually pay to our policyholders which includes policy liabilities for claims not yet incurred and for claims that have been incurred or are estimated to have been incurred but not yet reported to us. Liabilities for future policy benefits also include the related expenses for our non interest-sensitive life and accident and health products. The liability for future policy benefits is calculated based on the present value of the estimated future policy benefits less the present value of estimated future net premiums collected. Net premiums represent the portion of the gross premium required to provide for all benefits and expenses, excluding acquisition costs or any costs that are required to be charged to expense as incurred. In calculating the liability for future policy benefits, our long-duration contracts are grouped into cohorts by product type and contract issue year.
The calculation of the liability for future policy benefits involves numerous assumptions including assumptions related to discount rate, lapses, mortality, and morbidity.
Cash flow assumptions are reviewed and updated, as needed, at least annually. Assumptions may be updated more frequently if necessary based on trending experience and future expectations. On a quarterly basis, cohort level cash flow measures are updated based on the emergence of actual experience.
The initial, also referred to as the original, discount rate assumptions established for each cohort are used to determine interest accretion. After policy issuance or policy renewal, the discount rate assumptions are updated quarterly and used to update the liability at each reporting date to the current discount rate. The weighted average current discount rate was 5.2 percent at March 31, 2025 compared to 5.3 percent at December 31, 2024, with the decrease due primarily to a decrease in U.S. Treasury rates. The weighted average current discount rate was 5.1 percent at March 31, 2024 compared to 4.8 percent at December 31, 2023 with the increase due primarily to an increase in U.S. Treasury rates.
Actual variances from expected experience during the first three months of both 2025 and 2024 were due primarily to higher than expected claim resolutions driven by recoveries in the Unum US group disability product line and lower than expected mortality in the Unum US group life and accidental death and dismemberment product line. Also impacting the actual variances from expected experience during the first three months of 2025 was higher than expected mortality experience in the Closed Block individual disability product line.
For the three months ended March 31, 2025 and 2024, there were certain cohorts within the Closed Block segment, related to our long-term care product line and within the Colonial Life segment, related to our cancer and critical illness product line, for which net premiums exceeded gross premiums which had an immaterial impact to income before income tax. There were no other product lines with cohorts for which net premiums exceeded gross premiums for the three months ended March 31, 2025 and 2024. The following table presents balances as well as the changes in the liability for future policy benefits for traditional long duration products. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consolidated | | | | | | | | | | March 31 | | | | | | | | | | 2025 | | 2024 | | | | | | | | | | (in millions of dollars) | | Present Value of Expected Net Premiums | | | | | | | | | | | | | Balance, beginning of year | | | | | | | | | $ | 13,930.6 | | $ | 14,417.8 | | Beginning balance at original discount rate | | | | | | | | | 14,266.9 | | | 14,243.2 | | | Effect of changes in cash flow assumptions | | | | | | | | | — | | | — | | | Effect of actual variances from expected experience | | | | | | | | | (183.2) | | | (110.8) | | | Adjusted beginning of year balance | | | | | | | | | 14,083.7 | | 14,132.4 | | Issuances | | | | | | | | | 502.2 | | 435.9 | | Interest accretion | | | | | | | | | 163.2 | | 163.5 | | Net premiums collected | | | | | | | | | (435.4) | | (426.7) | | | | | | | | | | | | | | Foreign currency | | | | | | | | | 21.2 | | (3.4) | | Ending balance at original discount rate | | | | | | | | | 14,334.9 | | 14,301.7 | | Effect of change in discount rate assumptions | | | | | | | | | (181.4) | | | (113.1) | | | Balance, end of period | | | | | | | | | $ | 14,153.5 | | $ | 14,188.6 | | | | | | | | | | | | | | Present Value of Expected Future Policy Benefits | | | | | | | | | | | | | Balance, beginning of year | | | | | | | | | $ | 48,920.1 | | $ | 52,423.6 | | Beginning balance at original discount rate | | | | | | | | | 50,778.2 | | | 51,305.7 | | | Effect of changes in cash flow assumptions | | | | | | | | | — | | | — | | | Effect of actual variances from expected experience | | | | | | | | | (289.0) | | | (205.9) | | | Adjusted beginning of year balance | | | | | | | | | 50,489.2 | | 51,099.8 | Issuances1 | | | | | | | | | 1,272.5 | | 1,187.8 | | Interest accretion | | | | | | | | | 572.7 | | 579.5 | | Benefit payments | | | | | | | | | (1,618.7) | | (1,598.1) | | | | | | | | | | | | | | Foreign currency | | | | | | | | | 103.6 | | (24.2) | | Ending balance at original discount rate | | | | | | | | | 50,819.3 | | 51,244.8 | | Effect of change in discount rate assumptions | | | | | | | | | (1,422.9) | | | (377.5) | | | Balance, end of period | | | | | | | | | $ | 49,396.4 | | $ | 50,867.3 | | | | | | | | | | | | | | Net liability for future policy benefits | | | | | | | | | $ | 35,242.9 | | $ | 36,678.7 | Other2 | | | | | | | | | 1,580.0 | | | 1,704.1 | | | Total liability for future policy benefits | | | | | | | | | 36,822.9 | | | 38,382.8 | | | Less: Reinsurance recoverable related to future policy benefits | | | | | | | | | 6,888.2 | | | 7,504.0 | | | Net liability for future policy benefits, after reinsurance recoverable | | | | | | | | | $ | 29,934.7 | | $ | 30,878.8 | | | | | | | | | | | | | 1Issuances include new policy issuances for most product lines. For our Unum US group disability, Unum US group life and AD&D and Closed Block - All Other product lines and certain of our Unum International product lines, this line represents new claim incurrals. | 2Other primarily relates to our Closed Block - All Other product line. |
The following tables summarize the amount of gross premiums and interest accretion reflected in the statements of income as well as the undiscounted and discounted expected gross premiums and expected future benefit payments and the weighted average interest rates for traditional long duration products presented in the rollforward activity above.
| | | | | | | | | | | | | | | | | Consolidated | | | March 31 | | | 2025 | | 2024 | | | (in millions of dollars) | | Amount recognized in the statement of income: | | | | | | Gross premiums or assessments | | $ | 2,592.1 | | $ | 2,507.8 | | Interest accretion | | $ | 409.5 | | $ | 416.0 |
| | | | | | | | | | | | | Consolidated | | March 31 | | 2025 | | 2024 | | (in millions of dollars, except weighted average data) | | Amount of undiscounted: | | | | | Expected future benefit payments | $ | 103,072.4 | | | $ | 104,905.0 | | | Expected future gross premiums | $ | 39,765.5 | | | $ | 39,072.6 | | | | | | | Amount of discounted (at interest accretion rate): | | | | | | | | | Expected future gross premiums | $ | 26,189.2 | | | $ | 25,772.6 | | | | | | | Weighted average interest rate: | | | | | Interest accretion rate | 4.9 | % | | 4.9 | % | | Current discount rate | 5.2 | % | | 5.1 | % | | | | | | Weighted average duration of the liability | 11.4 years | | 11.5 years | | | | | | | | |
Unum US Segment
The following table presents the balances and changes in the reserves for future policy benefits for traditional long duration products in the Unum US segment. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | | | Group Disability | | Group Life and AD&D | | Voluntary Benefits | | Individual Disability | | | | Total Unum US | | (in millions of dollars) | | Present Value of Expected Net Premiums | | | | | | | | | | | | | Balance, beginning of year | $ | — | | $ | — | | $ | 1,240.2 | | $ | 1,202.5 | | | | $ | 2,442.7 | | Beginning balance at original discount rate | — | | — | | 1,335.3 | | 1,230.7 | | | | 2,566.0 | | Effect of changes in cash flow assumptions | — | | — | | — | | — | | | | — | | Effect of actual variances from expected experience | — | | — | | (55.1) | | (48.0) | | | | (103.1) | | Adjusted beginning of year balance | — | | — | | 1,280.2 | | 1,182.7 | | | | 2,462.9 | | Issuances | — | | — | | 250.7 | | 93.4 | | | | 344.1 | | Interest accretion | — | | — | | 12.4 | | 13.0 | | | | 25.4 | | Net premiums collected | — | | — | | (58.2) | | (47.1) | | | | (105.3) | | | | | | | | | | | | | | Ending balance at original discount rate | — | | — | | 1,485.1 | | 1,242.0 | | | | 2,727.1 | | Effect of change in discount rate assumptions | — | | — | | (78.6) | | (14.9) | | | | (93.5) | | Balance, end of period | $ | — | | $ | — | | $ | 1,406.5 | | $ | 1,227.1 | | | | $ | 2,633.6 | | | | | | | | | | | | | | Present Value of Expected Future Policy Benefits | | | | | | | | | | | | | Balance, beginning of year | $ | 4,735.8 | | $ | 835.2 | | $ | 2,362.5 | | $ | 3,096.5 | | | | $ | 11,030.0 | | Beginning balance at original discount rate | 4,907.5 | | 852.6 | | 2,614.6 | | 3,191.1 | | | | 11,565.8 | | Effect of changes in cash flow assumptions | — | | — | | — | | — | | | | — | | Effect of actual variances from expected experience | (45.3) | | (20.9) | | (58.1) | | (54.5) | | | | (178.8) | | Adjusted beginning of year balance | 4,862.2 | | 831.7 | | 2,556.5 | | 3,136.6 | | | | 11,387.0 | Issuances1 | 410.6 | | 203.6 | | 260.8 | | 95.7 | | | | 970.7 | | Interest accretion | 42.1 | | 4.8 | | 27.7 | | 37.0 | | | | 111.6 | | Benefit payments | (452.4) | | (220.9) | | (74.2) | | (74.5) | | | | (822.0) | | | | | | | | | | | | | | Ending balance at original discount rate | 4,862.5 | | 819.2 | | 2,770.8 | | 3,194.8 | | | | 11,647.3 | | Effect of change in discount rate assumptions | (133.9) | | (13.2) | | (229.2) | | (55.9) | | | | (432.2) | | | Balance, end of period | $ | 4,728.6 | | $ | 806.0 | | $ | 2,541.6 | | $ | 3,138.9 | | | | $ | 11,215.1 | | | | | | | | | | | | | | Net liability for future policy benefits | $ | 4,728.6 | | $ | 806.0 | | $ | 1,135.1 | | $ | 1,911.8 | | | | $ | 8,581.5 | | Other | 0.2 | | 0.8 | | 2.8 | | 25.8 | | | | 29.6 | | Total liability for future policy benefits | 4,728.8 | | 806.8 | | 1,137.9 | | 1,937.6 | | | | 8,611.1 | | Less: Reinsurance recoverable related to future policy benefits | 25.5 | | 6.2 | | 13.3 | | 73.4 | | | | 118.4 | | Net liability for future policy benefits, after reinsurance recoverable | $ | 4,703.3 | | $ | 800.6 | | $ | 1,124.6 | | $ | 1,864.2 | | | | $ | 8,492.7 | | | | | | | | | | | | | 1Issuances include new policy issuances for most product lines. Issuances for Unum US group disability and Unum US group life and AD&D represents new claim incurrals. | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | | | Group Disability | | Group Life and AD&D | | Voluntary Benefits | | Individual Disability | | | | Total Unum US | | (in millions of dollars) | | Present Value of Expected Net Premiums | | | | | | | | | | | | | Balance, beginning of year | $ | — | | $ | — | | $ | 1,134.7 | | $ | 1,296.7 | | | | $ | 2,431.4 | | Beginning balance at original discount rate | — | | — | | 1,192.5 | | 1,294.4 | | | | 2,486.9 | | Effect of changes in cash flow assumptions | — | | — | | — | | — | | | | — | | Effect of actual variances from expected experience | — | | — | | (80.7) | | (17.9) | | | | (98.6) | | Adjusted beginning of year balance | — | | — | | 1,111.8 | | 1,276.5 | | | | 2,388.3 | | Issuances | — | | — | | 213.4 | | 40.8 | | | | 254.2 | | Interest accretion | — | | — | | 10.2 | | 13.9 | | | | 24.1 | | Net premiums collected | — | | — | | (50.9) | | (48.9) | | | | (99.8) | | | | | | | | | | | | | | Ending balance at original discount rate | — | | — | | 1,284.5 | | 1,282.3 | | | | 2,566.8 | | Effect of change in discount rate assumptions | — | | — | | (74.8) | | (18.2) | | | | (93.0) | | Balance, end of period | $ | — | | $ | — | | $ | 1,209.7 | | $ | 1,264.1 | | | | $ | 2,473.8 | | | | | | | | | | | | | | Present Value of Expected Future Policy Benefits | | | | | | | | | | | | | Balance, beginning of year | $ | 5,147.4 | | $ | 922.0 | | $ | 2,334.5 | | $ | 3,348.6 | | | | $ | 11,752.5 | | Beginning balance at original discount rate | 5,277.1 | | 936.5 | | 2,422.0 | | 3,313.9 | | | | 11,949.5 | | Effect of changes in cash flow assumptions | — | | — | | — | | — | | | | — | | Effect of actual variances from expected experience | (73.0) | | (19.1) | | (95.5) | | (24.0) | | | | (211.6) | | Adjusted beginning of year balance | 5,204.1 | | 917.4 | | 2,326.5 | | 3,289.9 | | | | 11,737.9 | Issuances1 | 386.6 | | 211.6 | | 219.3 | | 42.0 | | | | 859.5 | | Interest accretion | 46.8 | | 5.4 | | 24.5 | | 38.7 | | | | 115.4 | | Benefit payments | (460.7) | | (228.9) | | (61.4) | | (68.2) | | | | (819.2) | | | | | | | | | | | | | | Ending balance at original discount rate | 5,176.8 | | 905.5 | | 2,508.9 | | 3,302.4 | | | | 11,893.6 | | Effect of change in discount rate assumptions | (180.7) | | (20.0) | | (156.8) | | (38.7) | | | | (396.2) | | Balance, end of period | $ | 4,996.1 | | $ | 885.5 | | $ | 2,352.1 | | $ | 3,263.7 | | | | $ | 11,497.4 | | | | | | | | | | | | | | Net liability for future policy benefits | $ | 4,996.1 | | $ | 885.5 | | $ | 1,142.4 | | $ | 1,999.6 | | | | $ | 9,023.6 | | Other | 0.2 | | 0.9 | | 2.6 | | 26.7 | | | | 30.4 | | Total liability for future policy benefits | 4,996.3 | | 886.4 | | 1,145.0 | | 2,026.3 | | | | 9,054.0 | | Less: Reinsurance recoverable related to future policy benefits | 29.1 | | 8.7 | | 13.9 | | 154.1 | | | | 205.8 | | Net liability for future policy benefits, after reinsurance recoverable | $ | 4,967.2 | | $ | 877.7 | | $ | 1,131.1 | | $ | 1,872.2 | | | | $ | 8,848.2 | | | | | | | | | | | | | 1Issuances include new policy issuances for most product lines. Issuances for Unum US group disability and Unum US group life and AD&D represents new claim incurrals. | | | | | | | | | | | | | |
The following tables summarize the amount of gross premiums and interest accretion reflected in the statements of income as well as the undiscounted and discounted expected gross premiums and expected future benefit payments and the weighted average interest rates for traditional long duration products in the Unum US segment presented in the rollforward activity above.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | | | Group Disability | | Group Life and AD&D | | Voluntary Benefits | | Individual Disability | | Total Unum US | | (in millions of dollars) | | Amount recognized in the statement of income: | | | | | | | | | | | Gross premiums or assessments | $ | 779.6 | | $ | 520.3 | | $ | 219.9 | | $ | 170.8 | | $ | 1,690.6 | | Interest accretion | $ | 42.1 | | $ | 4.8 | | $ | 15.3 | | $ | 24.0 | | $ | 86.2 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | | | Group Disability | | Group Life and AD&D | | Voluntary Benefits | | Individual Disability | | Total Unum US | | (in millions of dollars) | | Amount recognized in the statement of income: | | | | | | | | | | | Gross premiums or assessments | $ | 754.1 | | $ | 494.4 | | $ | 207.8 | | $ | 165.4 | | $ | 1,621.7 | | Interest accretion | $ | 46.8 | | $ | 5.4 | | $ | 14.3 | | $ | 24.8 | | $ | 91.3 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | | | Group Disability | | Group Life and AD&D | | Voluntary Benefits | | Individual Disability | | Total Unum US | | (in millions of dollars, except weighted average data) | | Amount of undiscounted: | | | | | | | | | | | Expected future benefit payments | $ | 5,862.0 | | | $ | 930.0 | | | $ | 5,868.6 | | | $ | 5,138.4 | | | $ | 17,799.0 | | | Expected future gross premiums | $ | — | | | $ | — | | | $ | 6,325.6 | | | $ | 5,812.6 | | | $ | 12,138.2 | | | | | | | | | | | | | Amount of discounted (at interest accretion rate): | | | | | | | | | | | | | | | | | | | | | Expected future gross premiums | $ | — | | | $ | — | | | $ | 4,121.9 | | | $ | 4,181.3 | | | $ | 8,303.2 | | | | | | | | | | | | | Weighted average interest rate: | | | | | | | | | | | Interest accretion rate | 4.2 | % | | 2.4 | % | | 5.0 | % | | 5.1 | % | | 4.3 | % | | Current discount rate | 4.7 | % | | 2.7 | % | | 5.5 | % | | 5.1 | % | | 4.7 | % | | | | | | | | | | | | Weighted average duration of the liability | 4.1 years | | 2.5 years | | 18.4 years | | 9.5 years | | 7.1 years |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | | | Group Disability | | Group Life and AD&D | | Voluntary Benefits | | Individual Disability | | Total Unum US | | (in millions of dollars, except weighted average data) | | Amount of undiscounted: | | | | | | | | | | | Expected future benefit payments | $ | 6,251.2 | | | $ | 1,030.5 | | | $ | 5,330.0 | | | $ | 5,297.1 | | | $ | 17,908.8 | | | Expected future gross premiums | $ | — | | | $ | — | | | $ | 5,771.9 | | | $ | 5,699.9 | | | $ | 11,471.8 | | | | | | | | | | | | | Amount of discounted (at interest accretion rate): | | | | | | | | | | | | | | | | | | | | | Expected future gross premiums | $ | — | | | $ | — | | | $ | 3,896.1 | | | $ | 4,096.1 | | | $ | 7,992.2 | | | | | | | | | | | | | Weighted average interest rate: | | | | | | | | | | | Interest accretion rate | 4.0 | % | | 2.3 | % | | 5.0 | % | | 5.1 | % | | 4.2 | % | | Current discount rate | 4.9 | % | | 2.8 | % | | 5.2 | % | | 5.1 | % | | 4.7 | % | | | | | | | | | | | | Weighted average duration of the liability | 4.2 years | | 2.6 years | | 18.3 years | | 9.6 years | | 7.0 years |
Unum International Segment
The following table presents the balances and changes in the reserves for future policy benefits for traditional long duration products in the Unum International segment.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31 | | | | | | 2025 | | | | | 2024 | | | | | | (in millions of dollars) | | Present Value of Expected Net Premiums | | | | | | | | | | | | Balance, beginning of year | | | | | $ | 276.1 | | | | | $ | 270.3 | | Beginning balance at original discount rate | | | | | 314.2 | | | | | | 298.4 | | | Effect of changes in cash flow assumptions | | | | | — | | | | | | — | | | Effect of actual variances from expected experience | | | | | 1.1 | | | | | | 7.2 | | | Adjusted beginning of year balance | | | | | 315.3 | | | | | 305.6 | | Issuances | | | | | 8.3 | | | | | 8.8 | | Interest accretion | | | | | 3.0 | | | | | 3.0 | | Net premiums collected | | | | | (7.8) | | | | | (7.3) | | | | | | | | | | | | | Foreign currency | | | | | 21.2 | | | | | (3.4) | | Ending balance at original discount rate | | | | | 340.0 | | | | | 306.7 | | Effect of change in discount rate assumptions | | | | | (37.5) | | | | | | (29.9) | | | Balance, end of period | | | | | $ | 302.5 | | | | | $ | 276.8 | | | | | | | | | | | | | Present Value of Expected Future Policy Benefits | | | | | | | | | | | | Balance, beginning of year | | | | | $ | 2,391.6 | | | | | $ | 2,527.4 | | Beginning balance at original discount rate | | | | | 2,641.5 | | | | | | 2,687.1 | | | Effect of changes in cash flow assumptions | | | | | — | | | | | | — | | | Effect of actual variances from expected experience | | | | | (7.3) | | | | | | (0.5) | | | Adjusted beginning of year balance | | | | | 2,634.2 | | | | | 2,686.6 | Issuances1 | | | | | 117.6 | | | | | 113.9 | | Interest accretion | | | | | 17.5 | | | | | 16.9 | | Benefit payments | | | | | (138.9) | | | | | (132.1) | | | | | | | | | | | | | Foreign currency | | | | | 103.6 | | | | | (24.2) | | Ending balance at original discount rate | | | | | 2,734.0 | | | | | 2,661.1 | | Effect of change in discount rate assumptions | | | | | (266.5) | | | | | | (206.9) | | | Balance, end of period | | | | | $ | 2,467.5 | | | | | $ | 2,454.2 | | | | | | | | | | | | | Net liability for future policy benefits | | | | | $ | 2,165.0 | | | | | $ | 2,177.4 | | Other | | | | | 45.8 | | | | | | 35.9 | | | Total liability for future policy benefits | | | | | 2,210.8 | | | | | | 2,213.3 | | | Less: Reinsurance recoverable related to future policy benefits | | | | | 68.7 | | | | | | 69.7 | | | Net liability for future policy benefits, after reinsurance recoverable | | | | | $ | 2,142.1 | | | | | $ | 2,143.6 | | | | | | | | | | | | 1Issuances for Unum International primarily represents new claim incurrals. | | |
The following tables summarize the amount of gross premiums and interest accretion reflected in the statements of income as well as the undiscounted and discounted expected gross premiums and expected future benefit payments and the weighted average interest rates for traditional long duration products in the Unum International segment presented in the rollforward activity above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31 | | | | | | | | | | | | 2025 | | 2024 | | | | | | | | | (in millions of dollars) | | | | | | | Amount recognized in the statement of income: | | | | | | | | | | | | Gross premiums or assessments | | | $ | 241.3 | | $ | 230.5 | | | | | | | Interest accretion | | | $ | 14.5 | | $ | 13.9 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31 | | | | | | | | | 2025 | | 2024 | | | | | | | | | (in millions of dollars, except weighted average data) | | | | | Amount of undiscounted: | | | | | | | | | | | | Expected future benefit payments | | | | | $ | 4,431.6 | | | $ | 4,230.4 | | | | | | Expected future gross premiums | | | | | $ | 1,419.2 | | | $ | 1,246.6 | | | | | | | | | | | | | | | | | Amount of discounted (at interest accretion rate): | | | | | | | | | | | | | | | | | | | | | | | Expected future gross premiums | | | | | $ | 895.9 | | | $ | 807.5 | | | | | | | | | | | | | | | | | Weighted average interest rate: | | | | | | | | | | | | Interest accretion rate | | | | | 4.1 | % | | 4.1 | % | | | | | Current discount rate | | | | | 5.2 | % | | 4.9 | % | | | | | | | | | | | | | | | | Weighted average duration of the liability | | | | | 8.9 years | | 8.6 years | | | |
Colonial Life Segment
The following table presents the balances and changes in the reserves for future policy benefits for traditional long duration products in the Colonial Life segment. | | | | | | | | | | | | | | | March 31 | | 2025 | | 2024 | | (in millions of dollars) | | Present Value of Expected Net Premiums | | | | | Balance, beginning of year | $ | 3,553.3 | | $ | 3,592.6 | | Beginning balance at original discount rate | 3,793.8 | | | 3,754.3 | | | Effect of changes in cash flow assumptions | — | | | — | | | Effect of actual variances from expected experience | (11.3) | | | 3.7 | | | Adjusted beginning of year balance | 3,782.5 | | 3,758.0 | | Issuances | 149.8 | | 172.9 | | Interest accretion | 36.8 | | 35.1 | | Net premiums collected | (165.2) | | (164.4) | | | | | | | | | | Ending balance at original discount rate | 3,803.9 | | 3,801.6 | | Effect of change in discount rate assumptions | (198.8) | | | (213.7) | | | Balance, end of period | $ | 3,605.1 | | $ | 3,587.9 | | | | | | Present Value of Expected Future Policy Benefits | | | | | Balance, beginning of year | $ | 5,434.9 | | $ | 5,566.0 | | Beginning balance at original discount rate | 6,026.2 | | | 5,925.2 | | | Effect of changes in cash flow assumptions | — | | | — | | | Effect of actual variances from expected experience | (20.0) | | | (6.1) | | | Adjusted beginning of year balance | 6,006.2 | | 5,919.1 | | Issuances | 157.3 | | 181.4 | | Interest accretion | 60.5 | | 58.0 | | Benefit payments | (168.1) | | (161.2) | | | | | | | | | | Ending balance at original discount rate | 6,055.9 | | 5,997.3 | | Effect of change in discount rate assumptions | (531.4) | | | (483.1) | | | Balance, end of period | $ | 5,524.5 | | $ | 5,514.2 | | | | | | Net liability for future policy benefits | $ | 1,919.4 | | $ | 1,926.3 | | Other | 24.7 | | | 24.5 | | | Total liability for future policy benefits | 1,944.1 | | | 1,950.8 | | | Less: Reinsurance recoverable related to future policy benefits | 1.0 | | | 1.6 | | | Net liability for future policy benefits, after reinsurance recoverable | $ | 1,943.1 | | $ | 1,949.2 | | | | | | |
The following tables summarize the amount of gross premiums and interest accretion reflected in the statements of income as well as the undiscounted and discounted expected gross premiums and expected future benefit payments and the weighted average interest rates for traditional long duration products in the Colonial Life segment presented in the rollforward activity above.
| | | | | | | | | | | | | | | March 31 | | 2025 | | 2024 | | (in millions of dollars) | | Amount recognized in the statement of income: | | | | | Gross premiums or assessments | $ | 442.0 | | $ | 430.6 | | Interest accretion | $ | 23.7 | | $ | 22.9 |
| | | | | | | | | | | | | | | March 31 | | 2025 | | 2024 | | (in millions of dollars, except weighted average data) | | Amount of undiscounted: | | | | | Expected future benefit payments | $ | 10,537.5 | | | $ | 9,989.6 | | | Expected future gross premiums | $ | 12,748.0 | | | $ | 12,133.1 | | | | | | | Amount of discounted (at interest accretion rate): | | | | | | | | | Expected future gross premiums | $ | 9,110.3 | | | $ | 8,840.9 | | | | | | | Weighted average interest rate: | | | | | Interest accretion rate | 4.4 | % | | 4.3 | % | | Current discount rate | 5.3 | % | | 5.1 | % | | | | | | Weighted average duration of the liability | 17.3 years | | 17.0 years |
Closed Block Segment
The following table presents the balances and changes in the reserves for future policy benefits for traditional long duration products in the Closed Block segment. | | | | | | | | | | | | | | | | | | | March 31, 2025 | | | | Long-term Care | | All Other | | Total Closed Block | | (in millions of dollars) | | Present Value of Expected Net Premiums | | | | | | | Balance, beginning of year | $ | 7,658.5 | | $ | — | | $ | 7,658.5 | | Beginning balance at original discount rate | 7,592.9 | | — | | 7,592.9 | | Effect of changes in cash flow assumptions | — | | — | | — | | Effect of actual variances from expected experience | (69.9) | | — | | (69.9) | | Adjusted beginning of year balance | 7,523.0 | | — | | 7,523.0 | | | | | | | | Interest accretion | 98.0 | | — | | 98.0 | | Net premiums collected | (157.1) | | — | | (157.1) | | | | | | | | Ending balance at original discount rate | 7,463.9 | | — | | 7,463.9 | | Effect of change in discount rate assumptions | 148.4 | | — | | 148.4 | | Balance, end of period | $ | 7,612.3 | | $ | — | | $ | 7,612.3 | | | | | | | | Present Value of Expected Future Policy Benefits | | | | | | | Balance, beginning of year | $ | 22,925.2 | | $ | 7,138.4 | | $ | 30,063.6 | | Beginning balance at original discount rate | 22,953.7 | | 7,591.0 | | 30,544.7 | | Effect of changes in cash flow assumptions | — | | — | | — | | Effect of actual variances from expected experience | (63.0) | | (19.9) | | (82.9) | | Adjusted beginning of year balance | 22,890.7 | | 7,571.1 | | 30,461.8 | Issuances1 | — | | 26.9 | | 26.9 | | Interest accretion | 299.6 | | 83.5 | | 383.1 | | Benefit payments | (254.3) | | (235.4) | | (489.7) | | | | | | | | Ending balance at original discount rate | 22,936.0 | | 7,446.1 | | 30,382.1 | | Effect of change in discount rate assumptions | 176.9 | | (369.7) | | (192.8) | | Balance, end of period | $ | 23,112.9 | | $ | 7,076.4 | | $ | 30,189.3 | | | | | | | | Net liability for future policy benefits | $ | 15,500.6 | | $ | 7,076.4 | | $ | 22,577.0 | Other2 | 0.2 | | 1,479.7 | | 1,479.9 | | Total liability for future policy benefits | 15,500.8 | | 8,556.1 | | 24,056.9 | | Less: Reinsurance recoverable related to future policy benefits | 3.7 | | 6,696.4 | | 6,700.1 | | Net liability for future policy benefits, after reinsurance recoverable | $ | 15,497.1 | | $ | 1,859.7 | | $ | 17,356.8 | | | | | | | 1Issuances for Closed Block - All Other represents new claim incurrals. | 2Other for Closed Block - All Other primarily includes our closed block group pension products and certain of our ceded closed block individual life products. | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | | | Long-term Care | | | | All Other | | Total Closed Block | | (in millions of dollars) | | Present Value of Expected Net Premiums | | | | | | | | | Balance, beginning of year | $ | 8,123.5 | | | | $ | — | | $ | 8,123.5 | | Beginning balance at original discount rate | 7,703.6 | | | | — | | 7,703.6 | | Effect of changes in cash flow assumptions | — | | | | — | | — | | Effect of actual variances from expected experience | (23.1) | | | | — | | (23.1) | | Adjusted beginning of year balance | 7,680.5 | | | | — | | 7,680.5 | | | | | | | | | | Interest accretion | 101.3 | | | | — | | 101.3 | | Net premiums collected | (155.2) | | | | — | | (155.2) | | | | | | | | | | Ending balance at original discount rate | 7,626.6 | | | | — | | 7,626.6 | | Effect of change in discount rate assumptions | 223.5 | | | | — | | 223.5 | | Balance, end of period | $ | 7,850.1 | | | | $ | — | | $ | 7,850.1 | | | | | | | | | | Present Value of Expected Future Policy Benefits | | | | | | | | | Balance, beginning of year | $ | 24,697.7 | | | | $ | 7,880.0 | | $ | 32,577.7 | | Beginning balance at original discount rate | 22,649.3 | | | | 8,094.6 | | 30,743.9 | | Effect of changes in cash flow assumptions | — | | | | — | | — | | Effect of actual variances from expected experience | (3.3) | | | | 15.6 | | 12.3 | | Adjusted beginning of year balance | 22,646.0 | | | | 8,110.2 | | 30,756.2 | Issuances1 | — | | | | 33.0 | | 33.0 | | Interest accretion | 300.1 | | | | 89.1 | | 389.2 | | Benefit payments | (229.0) | | | | (256.6) | | (485.6) | | | | | | | | | | Ending balance at original discount rate | 22,717.1 | | | | 7,975.7 | | 30,692.8 | | Effect of change in discount rate assumptions | 1,070.5 | | | | (361.8) | | 708.7 | | Balance, end of period | $ | 23,787.6 | | | | $ | 7,613.9 | | $ | 31,401.5 | | | | | | | | | | Net liability for future policy benefits | $ | 15,937.5 | | | | $ | 7,613.9 | | $ | 23,551.4 | Other2 | 22.3 | | | | 1,591.0 | | 1,613.3 | | Total liability for future policy benefits | 15,959.8 | | | | 9,204.9 | | 25,164.7 | | Less: Reinsurance recoverable related to future policy benefits | 4.2 | | | | 7,222.6 | | 7,226.8 | | Net liability for future policy benefits, after reinsurance recoverable | $ | 15,955.6 | | | | $ | 1,982.3 | | $ | 17,937.9 | | | | | | | | | 1Issuances for Closed Block - All Other represents new claim incurrals. | 2Other for Closed Block - All Other primarily includes our closed block group pension products and certain of our ceded closed block individual life products. | | | | | | | | | |
The following tables summarize the amount of gross premiums and interest accretion reflected in the statements of income as well as the undiscounted and discounted expected gross premiums and expected future benefit payments and the weighted average interest rates for traditional long duration products in the Closed Block segment presented in the rollforward activity above.
| | | | | | | | | | | | | | | | | | | March 31, 2025 | | | | Long-term Care | | All Other | | Total Closed Block | | (in millions of dollars) | | Amount recognized in the statement of income: | | | | | | | Gross premiums or assessments | $ | 176.2 | | $ | 42.0 | | $ | 218.2 | | Interest accretion | $ | 201.6 | | $ | 83.5 | | $ | 285.1 |
| | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | | | | | | | Long-term Care | | All Other | | Total Closed Block | | | | (in millions of dollars) | | Amount recognized in the statement of income: | | | | | | | | | Gross premiums or assessments | | | $ | 174.6 | | $ | 50.4 | | $ | 225.0 | | Interest accretion | | | $ | 198.8 | | | $ | 89.1 | | $ | 287.9 |
| | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | | | | | | | Long-term Care | | All Other | | Total Closed Block | | | | (in millions of dollars, except weighted average data) | | Amount of undiscounted: | | | | | | | | | Expected future benefit payments | | | $ | 59,439.9 | | | $ | 10,864.4 | | $ | 70,304.3 | | | Expected future gross premiums | | | $ | 13,460.1 | | | $ | — | | $ | 13,460.1 | | | | | | | | | | | Amount of discounted (at interest accretion rate): | | | | | | | | | | | | | | | | | Expected future gross premiums | | | $ | 7,879.8 | | | $ | — | | $ | 7,879.8 | | | | | | | | | | | Weighted average interest rate: | | | | | | | | | Interest accretion rate | | | 5.6 | % | | 4.6 | % | | 5.3 | % | | Current discount rate | | | 5.5% | | 5.2 | % | | 5.4 | % | | | | | | | | | | Weighted average duration of the liability | | | 15.5 years | | 7.2 years | | 12.8 years |
| | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | | | | | | | Long-term Care | | All Other | | Total Closed Block | | | | (in millions of dollars, except weighted average data) | | Amount of undiscounted: | | | | | | | | | Expected future benefit payments | | | $ | 61,072.6 | | | $ | 11,703.6 | | $ | 72,776.2 | | | Expected future gross premiums | | | $ | 14,221.1 | | | $ | — | | $ | 14,221.1 | | | | | | | | | | | Amount of discounted (at interest accretion rate): | | | | | | | | | | | | | | | | | Expected future gross premiums | | | $ | 8,132.0 | | | $ | — | | $ | 8,132.0 | | | | | | | | | | | Weighted average interest rate: | | | | | | | | | Interest accretion rate | | | 5.6 | % | | 4.6 | % | | 5.2 | % | | Current discount rate | | | 5.3 | % | | 5.1 | % | | 5.2 | % | | | | | | | | | | Weighted average duration of the liability | | | 16.2 years | | 7.3 years | | 13.1 years |
Reconciliation
A reconciliation of the liability for future policy benefits reflected in the preceding rollforwards to the related liability balances in the consolidated balance sheets are as follows:
| | | | | | | | | | | | | March 31 | | 2025 | | 2024 | | (in millions of dollars) | | Liability for future policy benefits | | | | Unum US1 | $ | 8,611.1 | | | $ | 9,054.0 | | Unum International | 2,210.8 | | | 2,213.3 | | | Colonial Life | 1,944.1 | | | 1,950.8 | | Closed Block1 | 24,056.9 | | | 25,164.7 | | Other products1 | 207.8 | | | 241.7 | | | Total liability for future policy benefits | $ | 37,030.7 | | | $ | 38,624.5 | |
1Unum US excludes dental & vision and medical stop-loss product lines and Closed Block excludes our participating fund account, which represents policies issued by one of our subsidiaries prior to its 1986 conversion from a mutual stock life insurance company. The liabilities associated with these products are included within Other products. Policyholders' account balances primarily include our universal life and corporate-owned life insurance products. Policyholders' account balances reflect customer deposits and interest credited less cost of insurance, administration expenses, surrender charges, and customer withdrawals.
The following table presents the balances and changes in the policyholders' account balances:
| | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | Unum US - Voluntary Benefits | | Colonial Life | | Closed Block - All Other | | Total | | (in millions of dollars, except weighted average data) | | Balance, beginning of year | $ | 568.8 | | | $ | 849.0 | | | $ | 4,052.2 | | | $ | 5,470.0 | | | Premiums received | 12.9 | | | 19.4 | | | 7.9 | | | 40.2 | | Policy charges1 | (13.9) | | | (17.6) | | | (28.4) | | | (59.9) | | | Surrenders and withdrawals | (8.9) | | | (10.0) | | | (4.3) | | | (23.2) | | | Benefit payments | (1.6) | | | (2.2) | | | (65.4) | | | (69.2) | | | Interest credited | 5.1 | | | 8.5 | | | 82.0 | | | 95.6 | | | Other | 2.5 | | | (0.1) | | | 0.1 | | | 2.5 | | | Balance, end of period | 564.9 | | | 847.0 | | | 4,044.1 | | | 5,456.0 | | | Reserves in excess of account balance | 109.2 | | | 13.8 | | | 41.8 | | | 164.8 | | | Total policyholders' account balances | 674.1 | | | 860.8 | | | 4,085.9 | | | 5,620.8 | | | Less: Reinsurance recoverable related to policyholders' account balances | 0.8 | | | 0.1 | | 4,085.9 | | 4,086.8 | | Net policyholders' account balances, after reinsurance recoverable | $ | 673.3 | | | $ | 860.7 | | | $ | — | | | $ | 1,534.0 | | | | | | | | | | | Weighted average crediting rate | 3.7% | | 4.1% | | 8.4% | | 7.2% | Net amount at risk2 | $ | 4,040.4 | | | $ | 8,057.8 | | $ | 1,701.8 | | $ | 13,800.0 | | | Cash surrender value | $ | 554.9 | | | $ | 821.1 | | $ | 4,017.0 | | $ | 5,393.0 | | | | | | | | | | 1Contracts included in the policyholders' account balances are generally charged a premium and/or monthly assessments on the basis of the account balance. | 2For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. |
| | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | Unum US - Voluntary Benefits | | Colonial Life | | Closed Block - All Other | | Total | | (in millions of dollars, except weighted average data) | | Balance, beginning of year | $ | 578.6 | | $ | 852.9 | | | $ | 4,082.7 | | | $ | 5,514.2 | | | Premiums received | 14.0 | | 20.5 | | | 5.7 | | | 40.2 | | Policy charges1 | (14.5) | | (18.3) | | | (27.8) | | | (60.6) | | | Surrenders and withdrawals | (10.2) | | (9.7) | | | (2.9) | | | (22.8) | | | Benefit payments | (1.9) | | (2.1) | | | (75.5) | | | (79.5) | | | Interest credited | 5.3 | | 8.6 | | | 81.7 | | | 95.6 | | | Other | 2.8 | | 0.1 | | | 0.3 | | | 3.2 | | | Balance, end of period | 574.1 | | | 852.0 | | | 4,064.2 | | | 5,490.3 | | | Reserves in excess of account balance | 99.7 | | 16.2 | | 32.8 | | 148.7 | | | Total policyholders' account balances | 673.8 | | | 868.2 | | | 4,097.0 | | | 5,639.0 | | | Less: Reinsurance recoverable related to policyholders' account balances | 0.9 | | — | | 4,097.0 | | 4,097.9 | | Net policyholders' account balances, after reinsurance recoverable | $ | 672.9 | | $ | 868.2 | | $ | — | | $ | 1,541.1 | | | | | | | | | | Weighted average crediting rate | 3.7% | | 4.1% | | 8.3% | | 7.2% | Net amount at risk2 | $ | 4,393.5 | | $ | 8,621.0 | | $ | 1,814.0 | | $ | 14,828.5 | | | Cash surrender value | $ | 563.3 | | $ | 816.6 | | $ | 4,045.3 | | $ | 5,425.2 | | | | | | | | | | 1Contracts included in the policyholders' account balances are generally charged a premium and/or monthly assessments on the basis of the account balance. | 2For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. |
The balance of the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders' and the respective guaranteed minimums is as follows.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | Range of Guaranteed Minimum Crediting Rate | | At Guaranteed Minimum | | 1 Basis Point - 50 Basis Points Above | | 51 Basis Points - 150 Basis Points Above | | Greater than 150 Basis Points Above | | Total | | | (in millions of dollars) | | | | | | | | | | | | | | Unum US - Voluntary Benefits | 3.00% - 3.99% | | $ | 87.9 | | $ | — | | $ | — | | $ | — | | $ | 87.9 | 4.00% - 4.99% | | 243.6 | | 203.0 | | — | | — | | 446.6 | 5.00% - 6.00% | | 30.4 | | — | | — | | — | | 30.4 | | | 361.9 | | 203.0 | | — | | — | | 564.9 | | | | | | | | | | | | | | Colonial Life | 4.00% - 5.00% | | 840.7 | | 6.3 | | — | | — | | 847.0 | | | | | | | | | | | | | | Closed Block - All Other | 3.00% - 5.99% | | 1,448.9 | | 48.2 | | 6.9 | | — | | 1,504.0 | 6.00% - 8.99% | | 26.3 | | — | | — | | — | | 26.3 | 9.00% - 11.99% | | 2,306.7 | | — | | — | | — | | 2,306.7 | 12.00% - 15.00% | | 207.1 | | — | | — | | — | | 207.1 | | | 3,989.0 | | 48.2 | | 6.9 | | — | | 4,044.1 | | | | | | | | | | | | | Total | | $ | 5,191.6 | | $ | 257.5 | | $ | 6.9 | | $ | — | | $ | 5,456.0 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | Range of Guaranteed Minimum Crediting Rate | | At Guaranteed Minimum | | 1 Basis Point - 50 Basis Points Above | | 51 Basis Points - 150 Basis Points Above | | Greater than 150 Basis Points Above | | Total | | | (in millions of dollars) | | | | | | | | | | | | | | Unum US - Voluntary Benefits | 3.00% - 3.99% | | $ | 91.3 | | $ | — | | $ | — | | $ | — | | $ | 91.3 | 4.00% - 4.99% | | 223.8 | | 191.4 | | 36.9 | | — | | 452.1 | 5.00% - 6.00% | | 30.7 | | — | | — | | — | | 30.7 | | | | | | | | | | | | | | 345.8 | | 191.4 | | 36.9 | | — | | 574.1 | | | | | | | | | | | | | | Colonial Life | | | | | | | | | | | | 4.00% - 5.00% | | 845.8 | | 6.2 | | — | | — | | 852.0 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Closed Block - All Other | 3.00% - 5.99% | | 513.9 | | 1,060.6 | | 27.1 | | — | | | 1,601.6 | 6.00% - 8.99% | | 1.3 | | 24.9 | | — | | — | | | 26.2 | 9.00% - 11.99% | | 138.5 | | 2,107.2 | | — | | — | | | 2,245.7 | 12.00% - 15.00% | | — | | 190.7 | | — | | — | | | 190.7 | | | 653.7 | | 3,383.4 | | 27.1 | | — | | 4,064.2 | | | | | | | | | | | | | Total | | $ | 1,845.3 | | $ | 3,581.0 | | $ | 64.0 | | $ | — | | $ | 5,490.3 |
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