Unum Group · NYSE:UNM
Unum — Merger or Acquisition (February 2025)
13 slides from Unum's merger presentation, Feb 27, 2025
Slide 1: Long-Term Care Transaction & Restructuring
Long-Term Care Transaction & Restructuring February 27, 2025
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain information in this presentation constitutes "forward-looking statements" (10) ineffectiveness of our derivatives hedging programs due to changes in within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- forecasted cash flows, the economic
Slide 3: Key Messages
KEY MESSAGES • Executing on strategy with internal and external actions • Meaningful reduction of LTC footprint at attractive pricing validating underlying assumptions • Improved risk profile and positive overall capital benefit • Internal restructuring further improves capital position and reduces
Slide 4: Executing on Our Closed Block Strategy
EXECUTING ON OUR CLOSED BLOCK STRATEGY Improve Value Reduce the Increase Predictability Creation Footprint of Outcomes Actively managing the block to reduce the footprint and the capital demands of the closed MILESTONE ACHIEVEMENTS IN 2025: block • External Transaction - Full risk transfer with high
Slide 5: External Transaction Summary
EXTERNAL TRANSACTION SUMMARY External reinsurance removes 19% of LTC reserves along with 20% of in-force multi-life IDI premium, resulting in approximately $100M capital benefit LONG-TERM CARE INDIVIDUAL DISABILITY • $3.4B of statutory reserves representing 19% of • 20% quota-share of in-force multi
Slide 6: Increased Level of LTC Protections, Reduced Risk on Remaining Position
INCREASED LEVEL OF LTC PROTECTIONS, REDUCED RISK ON REMAINING POSITION $2.6 BILLION OF PROTECTION MOST SENSITIVITIES REDUCED • Level of protection available to retained block Key Assumption Stress Prior Post Change increases; absolute amount remains Premium Rate Increases Remove $0.86B $0.78B (9)% c
Slide 7: Growth Profile Remains Intact Following IDI Cede
GROWTH PROFILE REMAINS INTACT FOLLOWING IDI CEDE CORE OPERATIONS GROWTH PROFILE • One-time impact of ceded premium drives Core Operations premium growth rate of 3-6%1 in 2025; underlying and long-term growth profile of 4-7% 1-time Premium Impact remains intact Earned Premium • Retention of new busin
Slide 8: Internal Restructuring Combined with External Action Reduces LTC Exposure
INTERNAL RESTRUCTURING COMBINED WITH EXTERNAL ACTION REDUCES LTC EXPOSURE INTERNAL RESTRUCTURING LTC RESERVE REDUCTION OF $4 BILLION EXTERNAL TRANSACTION • Funds withheld reinsurance from First Unum (FUNM) to Provident Life and Accident (PLA) provides Unum 100% Coinsurance Fortitude Insurance Risk G
Slide 9: Closing Comments
CLOSING COMMENTS • Strength across employee benefits franchise • Multiyear active management of our closed block • Actions taken reduce risk and increase available capital • Underlying and long-term growth profile intact 9
Slide 10: Questions and Answers
Questions and Answers see UNUMGROUP 10
Slide 11: Appendix
Appendix: • Term Sheet • LTC Block Demographic Profile 11
Slide 12: Summary of Key Terms
SUMMARY OF KEY TERMS FEATURE • 19% of long-term care exposure, equating to 30% of our ILTC block Business in Scope • Quota share of multi-life individual disability, representing 20% of in-force premium Reinsurance Type • 100% coinsurance; single treaty for LTC and IDI Treaty Effective Date • Januar
Slide 13: LTC Block Demographic Profile
LTC BLOCK DEMOGRAPHIC PROFILE Retained Block Ceded Block Demographics Profile (as of 9/30/2024) ILTC GLTC Total LTC ILTC Average issue date 2002 2004 2004 2000 Number of insureds (approx.) 85,000 773,000 858,000 31,000 Overview Number of claims incurred1 44,545 21,953 66,498 5,121 Persistency 96.1%