Mike Ward's questions to Unum (UNM) leadership • Q2 2025
Question
Asked for details on the drivers of elevated claims and revised guidance in group disability, whether the lower claimant mortality in long-term care (LTC) is a one-off event, and how the company's stock appreciation affects the accretion from share buybacks.
Answer
The group disability benefit ratio is stable at around 62%, driven by lower recoveries and higher claim sizes, which is considered a good anchor for the year. The lower LTC claimant mortality is viewed as quarterly volatility or an anomaly, not a new trend. The impact of the higher stock price on buyback accretion was already factored into the revised EPS guidance and is not a significant headwind.