Unum Group · NYSE:UNM
Unum — FY2024 Earnings Presentation
25 slides from Unum's earnings presentation, Feb 4, 2025
Slide 1: 2024 Results & 2025 Outlook
2024 Results & 2025 Outlook February 5, 2025
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 2 Certain information in this presentation constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are those not based on historical information, but rather relate to our outlook, future op
Slide 3: 2024 Key Messages
2024 KEY MESSAGES 3 • Top-line continued steady, disciplined growth • Strong execution and favorable backdrop drove robust margins • Continued to invest in industry leading capabilities and offerings • Free cash flow generation providing ample flexibility • Maintained strong balance sheet with recor
Slide 4: 2025 Key Messages
4 2025 KEY MESSAGES • Continued trajectory of premium growth • Sustaining product margins with disciplined approach • Expertise and digital leadership position us to win in the market • Adjusted operating earnings per share (EPS) growth of 8-12% • Strong free cash flow supporting dynamic capital dep
Slide 5: Resilient Business Model
Book Value per Share (excluding AOCI) Core Operations Premium 5 RESILIENT BUSINESS MODEL $6.87B $7.19B $7.47B $7.91B $8.33B $8.38B $8.48B $8.67B $9.13B $9.62B 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10-yr CAGR: 4% $35.90 $39.24 $42.45 $43.98 $48.92 $51.54 $55.30 $61.61 $67.02 $75.51 2015 2
Slide 6: 2024 Results (4Q / FY)
4Q-24 FY-24 Unum US $333.2 $1,439.2 Unum International $37.6 $157.8 Colonial Life $122.7 $466.7 Core Operations $493.5 $2,063.7 Closed Block $27.7 $137.8 Corporate $(50.4) $(191.2) Unum Group $470.8 $2,010.3 $548M / $1,268M Capital Returned to Shareholders3 3.6% / 5.0% Premium Growth1 1. Core operat
Slide 7: LTC Protected Against Additional Capital Needs
7 LTC PROTECTED AGAINST ADDITIONAL CAPITAL NEEDS • Protection measured as Fairwind excess capital plus statutory reserves relative to our best estimate of the value of the liability • LTC’s excess capital and statutory reserves, combined with actions taken to de-risk, support base and stress scenari
Slide 8: Financial Outlook & Capital Plan
Financial Outlook & Capital Plan 8
Slide 9: Key Messages: Financial Outlook and Capital Plan
9 KEY MESSAGES Sustained sector-leading margins and solid top-line growth drive free cash flow generation and bolsters our capital optionality in 2025 FINANCIAL OUTLOOK • Core operations premium growth fueled by strong sales across all segments • Strong margins expected to sustain in 2025 maintainin
Slide 10: 2025 Segment Outlook
10 2025 SEGMENT OUTLOOK 1. Constant currency basis Sales Growth Premium Growth Adjusted Operating ROE Unum U.S. 5-10% 3-6% 23-25% Unum International1 8-12% 10-15% 16-18% Colonial Life 5-10% 2-4% 18-20% Core Operations1 5-10% 4-7% 21-23% Sustained margins support 8-12% EPS growth outlook in 2025
Slide 11: 2025 Expected Free Cash Flow Generation of $1.3B to $1.6B
11 2025 EXPECTED FREE CASH FLOW GENERATION OF $1.3B TO $1.6B CAPITAL GENERATION 1. Net gain from operations, after-tax | 2. Non-discretionary, subject to debt management 2025 Outlook US Statutory Earnings1 $1.3-1.6B International Dividends $100-125M Service Agreements & Other $75-100M Capital Genera
Slide 12: Continuing to Operate from a Position of Capital Strength
Our capital target metrics remain constant and support an “A” financial strength rating 1. Interest payments & common stock dividend | 2. Leverage excludes certain AOCI items 12 Longer-Term Target 2024 Year-End Position 2025 Year-End Outlook Risk-Based Capital Ratio >350% ~430% 425-450% Holding Comp
Slide 13: Closing Comments and Questions
Closing Comments and Questions 13
Slide 14: Appendix
Appendix: • LTC Key Metrics • LTC Block Demographic Profile • Non-GAAP Reconciliations 14
Slide 15: LTC Key Metrics
15 LTC KEY METRICS Measure Why it’s Important Expectation/Measure Net Premium Ratio (NPR) Expected lifetime benefit ratio. Movement in the NPR captures claim expense trends more accurately over the long-term compared to the benefit ratio due to changes in accounting 94.6% Closed Block Earnings Indic
Slide 16: LTC Block Demographic Profile
16 • Our LTC block is predominately group-sponsored plans • These group policies generally have less rich benefits (less lifetime benefits, lower avg. daily benefits and less inflation protection) • Approximately 98% of the LTC block is indemnity based (not impacted by cost of care) DEMOGRAPHICS PRO
Slide 17: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 17 We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financia
Slide 18: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 18
Slide 19: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 19
Slide 20: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 20
Slide 21: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 21
Slide 22: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 22
Slide 23: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23
Slide 24: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 24
Slide 25: Reconciliation of
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 25