Unum Posts $419.7 Million Third-Quarter Net Loss Despite Adjusted Operating Profit
Key Facts
Unum Group reported a net loss of $419.7 million, or $2.65 per diluted share, in the third quarter of 2026, compared with net income of $39.7 million, or $0.23 per share, in the same period a year earlier. In contrast, the company posted adjusted after-tax operating income of $349.0 million, or $2.20 per share, versus $479.4 million and $2.81 per share a year earlier. The results highlight a divergence between the accounting loss and adjusted operating profit during the quarter. The company attributed a major part of the loss to an impairment of investment assets related to its long-term care reinsurance transaction with Fortitude Re. Chief Executive Richard McKenney said core earnings fell short of the company's expectations.
The company's portfolio recorded a net pretax investment loss of $853.0 million, most of which Unum attributed to impairment losses on assets related to its 2026 long-term care reinsurance transaction with Fortitude Re. This item separates the net income result from the adjusted operating profit the company reported for the quarter. On an adjusted after-tax operating income basis, the result fell to $349.0 million from $479.4 million in the third quarter of 2025. Per-share income on the same measure also declined to $2.20 from $2.81. Adjusted operating performance therefore weakened alongside the net loss.
McKenney said core earnings missed the company's expectations because of higher group disability insurance claims, despite strong performance in voluntary benefits. He said: "Our core earnings results came in below our expectations." Data for the Unum US segment showed similar pressure: adjusted operating income fell 35.2% to $315.3 million in the quarter, while the group disability benefit ratio rose to 67.1% from 47.8% a year earlier. The company attributed the segment's decline mainly to weakness in group disability activity. At the same time, premium growth in core operations remained positive at 4.7% on a constant currency basis, presenting a mixed picture of operating trends.
Core operations recorded premium growth of 4.7% on a constant currency basis, and adjusted operating return on equity was 21.3%. But that growth did not prevent total revenue from declining year over year, according to Investing.com. Meanwhile, adjusted operating income for the Unum International segment fell to $0.2 million, down 99.5% from $44.2 million in the third quarter of 2025. The decline shows operating pressure extending beyond group disability claims in the U.S. market. The company repurchased about $200 million of shares and paid cash dividends of $80.1 million during the quarter. Total capital returned to shareholders since the start of the year reached $1,038.5 million through the end of the third quarter.
Unum shares fell about 6% in after-hours trading on Tuesday following the results announcement, according to Investing.com. The company's stock, which trades under the ticker UNM, closed at $91.03 in the November 3, 2026 session. No reliable figures for the stock's trading range in that session were available in the verified data here. The immediate reaction followed weaker adjusted operating income and the net loss, despite premium growth in core operations. The company also announced a 2026 adjusted after-tax operating income range of $8.30 to $8.50 per share. The range includes about $0.33 per share from a notable item.
Unum scheduled a call to discuss its third-quarter results for November 4, 2026, at 8:00 a.m. Eastern time. The company is set to present and discuss the results at that time, according to its announcement. The disclosed adjusted after-tax operating income range for fiscal 2026 remains $8.30 to $8.50 per share. The guidance includes about $0.33 per share from the notable item. The call follows a quarter that combined a large net loss, a decline in adjusted operating income and premium growth in core operations. The company also recorded an adjusted operating return on equity of 21.3% during the quarter.