v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
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.

Segment information is shown below.
Three Months Ended March 31
20252024
(in millions of dollars)
Premium Income
Unum US
Group Disability
Group Long-term Disability$504.5 $516.7 
Group Short-term Disability278.3 263.1 
Group Life and Accidental Death & Dismemberment
Group Life466.2 442.6 
Accidental Death & Dismemberment48.2 45.8 
Supplemental and Voluntary
Voluntary Benefits234.1 222.9 
Individual Disability168.7 142.0 
Dental and Vision80.9 74.3 
1,780.9 1,707.4 
Unum International
Unum UK
Group Long-term Disability100.2 103.5 
Group Life61.6 48.7 
Supplemental41.9 43.1 
Unum Poland43.0 36.4 
246.7 231.7 
Colonial Life
Accident, Sickness, and Disability247.1 243.2 
Life119.9 114.3 
Cancer and Critical Illness90.3 89.4 
457.3 446.9 
Closed Block
Long-term Care176.2 174.5 
All Other41.8 49.8 
218.0 224.3 
Total Premium Income$2,702.9 $2,610.3 
Three Months Ended March 31, 2025
Unum USUnum InternationalColonial LifeClosed BlockCorporateTotal
(in millions of dollars)
Premium Income$1,780.9 $246.7 $457.3 $218.0 $— $2,702.9 
Net Investment Income148.9 28.5 42.2 269.7 23.9 513.2 
Other Income71.9 0.1 0.4 9.9 — 82.3 
Adjusted Operating Revenue$2,001.7 $275.3 $499.9 $497.6 $23.9 $3,298.4 
Adjusted Policy Benefits1
$1,138.6 $172.9 $226.6 $415.4 $— $1,953.5 
Adjusted Policy Benefits - Remeasurement Loss (Gain)
(75.4)(8.8)(8.5)3.4 — (89.3)
Commissions205.6 22.4 97.3 17.9 — 343.2 
Interest and Debt Expense— — — — 52.0 52.0 
Deferral of Acquisition Costs(84.7)(5.3)(82.6)— — (172.6)
Amortization of Deferred Acquisition Costs65.2 2.5 57.7 — — 125.4 
Other Segment Items2
423.3 52.9 93.7 36.5 13.0 619.4 
Adjusted Benefits and Expenses$1,672.6 $236.6 $384.2 $473.2 $65.0 $2,831.6 
Adjusted Operating Income (Loss)$329.1 $38.7 $115.7 $24.4 $(41.1)$466.8 
1Excludes the impact of non-contemporaneous reinsurance in the Closed Block segment.
2Excludes 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 the three months ended March 31, 2025 was $21.3 million, $4.7 million, $4.2 million, $1.5 million, and $0.1 million for our Unum US, Unum International, Colonial Life, Closed Block and Corporate segments, respectively.
Three Months Ended March 31, 2024
Unum USUnum InternationalColonial LifeClosed BlockCorporateTotal
(in millions of dollars)
Premium Income$1,707.4 $231.7 $446.9 $224.3 $— $2,610.3 
Net Investment Income157.0 26.1 39.3 273.1 18.0 513.5 
Other Income60.6 0.3 3.0 13.1 0.7 77.7 
Adjusted Operating Revenue$1,925.0 $258.1 $489.2 $510.5 $18.7 $3,201.5 
Adjusted Policy Benefits1
$1,081.7 $163.9 $226.7 $413.5 $— $1,885.8 
Adjusted Policy Benefits - Remeasurement Loss (Gain)
(112.4)(8.0)(9.6)22.3 — (107.7)
Commissions182.2 19.6 95.2 16.6 — 313.6 
Interest and Debt Expense— — — — 49.5 49.5 
Deferral of Acquisition Costs(83.3)(4.3)(79.3)— — (166.9)
Amortization of Deferred Acquisition Costs69.8 2.4 54.0 — — 126.2 
Other Segment Items2
401.8 47.1 88.5 33.8 15.3 586.5 
Adjusted Benefits and Expenses$1,539.8 $220.7 $375.5 $486.2 $64.8 $2,687.0 
Adjusted Operating Income (Loss)$385.2 $37.4 $113.7 $24.3 $(46.1)$514.5 
1Excludes the impact of non-contemporaneous reinsurance in the Closed Block segment.
2Excludes 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 the three months ended March 31, 2024 was $21.3 million, $4.3 million, $3.8 million, $1.3 million, and $0.1 million for our Unum US, Unum International, Colonial Life, Closed Block and Corporate segments, respectively.
March 31December 31
20252024
(in millions of dollars)
Assets
Unum US$14,839.3 $14,981.6 
Unum International3,388.3 3,291.3 
Colonial Life5,056.9 4,964.2 
Closed Block33,235.6 33,376.0 
Corporate5,939.7 5,346.2 
Total Assets$62,459.8 $61,959.3 

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 March 31, 2025 and December 31, 2024 goodwill was $350.6 million and $349.1 million, respectively, with $280.0 million attributable to Unum US in both periods, $42.9 million and $41.4 million, respectively, attributable to Unum International, and $27.7 million attributable to Colonial Life in both periods.

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 and losses, the amortization of the cost of reinsurance, the impact of non-contemporaneous reinsurance, and reserve assumption updates 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, or net income. 

Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, impairment 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.

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.

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.
A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows:

Three Months Ended March 31
20252024
(in millions of dollars)
Total Revenue$3,091.6 $3,200.3 
Excluding:
Net Investment Loss(206.8)(1.2)
Adjusted Operating Revenue$3,298.4 $3,201.5 
Income Before Income Tax$243.6 $495.7 
Excluding:
Net Investment Loss
Net Investment Loss Related to the Anticipated Reinsurance Agreement(175.9)— 
Net Investment Loss, Other(30.9)(1.2)
Total Net Investment Loss(206.8)(1.2)
Amortization of the Cost of Reinsurance(9.6)(10.4)
Non-Contemporaneous Reinsurance(6.8)(7.2)
Adjusted Operating Income$466.8 $514.5