Tom Gallagher's questions to Unum (UNM) leadership • Q2 2025
Question
Questioned the risk of long-term care (LTC) incidence trends being permanently revised higher in the next actuarial review and challenged the sustainability of the low 62% disability loss ratio, which is significantly better than pre-pandemic levels and peers.
Answer
Management declined to preview the LTC review results but emphasized the large statutory reserve buffer. For disability, they expressed confidence in the sustainability of the low loss ratio, attributing it to their best-in-class claims management operations and a sales approach focused on integrated solutions rather than just price, which supports fair returns.