- Capital returned to shareholders totaled $650 million year-to-date, including $150 million in dividends and $500 million in share repurchases, with plans to repurchase shares toward the upper end of the $500 million to $1 billion range for 2025.
- Closed Block segment earnings declined significantly to $3.9 million from $24.4 million due to unfavorable Long-Term Care (LTC) benefits experience, with the LTC net premium ratio rising to 94.9%.
- Colonial Life segment increased adjusted operating income slightly to $117.4 million from $116.9 million, with premium growth of 3.6% and a benefit ratio of 48.3%, producing an ROE of 18.6%.
- Core operations premium growth was 4.6% in the quarter, driven by strong persistency and natural growth within the in-force block, keeping the company on track for its full year premium growth outlook of 3% to 6%.
- Group disability benefit ratio was 62.2%, higher than the prior year due to lower recoveries but still within the low 60s expected range, with a robust ROE in excess of 25%.
- Group life and AD&D benefit ratio increased to 69.7% from 65.4%, driven by higher average claim size, consistent with expectations of around 70%.
- Holding company cash ended the quarter at $2 billion with a risk-based capital ratio of approximately 485%, well above targets.
- International segment showed solid premium growth of 12% on a constant currency basis, with adjusted operating income slightly down to $41.6 million from $42.5 million, impacted by inflation differences.
- Investment income from alternative assets yielded 7% annualized, slightly below the long-term target of 8% to 10%, with total alternative invested assets valued at $1.5 billion.
- Unum Group reported second quarter 2025 adjusted after-tax operating income per share of $2.07, down from $2.16 in the same period last year, reflecting earnings pressure mainly from claims experience in group products and the Closed Block.
- Unum U.S. supplemental and voluntary lines saw adjusted operating income increase to $123.2 million from $115.2 million, with a benefit ratio of 44.3%, improved from 45.1% due to favorable benefits experience.
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- Average deposits declined just over 1%, with non-interest bearing deposits stable at 38%.
- Average loans grew almost 1% for the quarter and period-end loans increased approximately 3%.
- Capitalization remained strong with an estimated CET1 ratio of 11.94%, well above the 10% strategic target.
- Net charge-offs were 22 basis points, at the low end of the normal range and flat quarter-over-quarter.
- Net interest income remained stable at $575 million for the third consecutive quarter.
- Non-interest expenses decreased $23 million due to lower litigation expenses and salaries, with some offsetting increases in advertising and outside processing.
- Non-interest income increased $20 million driven by higher loan volumes, capital markets income, and seasonal benefits.
- Reported earnings per share of $1.42, a nearly 14% increase over the prior quarter.
- Returned $193 million to shareholders through dividends and share repurchases, including $100 million in share repurchases in Q2.
- Adjusted free cash flow was $25 million, a more than tenfold increase compared to Q2 2024.
- Gross loss ratio improved significantly to 67% in Q2 2025 from 79% in Q2 2024, with a trailing 12-month gross loss ratio of 70%, the best in company history.
- Gross profit grew over 100% in Q2, with a gross margin of 39%, among the highest recorded.
- Lemonade reported strong Q2 2025 financial results with 29% year-on-year growth in in force premium (IFP), marking the seventh consecutive quarter of growth acceleration.
- Net loss narrowed to $44 million ($0.60 per share) from $57 million ($0.81 per share) in the prior year, and adjusted EBITDA loss improved slightly to $41 million from $43 million.
- Operating expenses excluding loss and loss adjustment expense increased 21% to $129 million, driven by growth spend and a $12 million one-time tax refund benefit.
- Revenue increased 35% year-over-year to $164 million, driven by gross earned premium growth, higher ceding commission rates, and a 16% increase in investment income.
- Total cash, cash equivalents, and investments ended at approximately $1.03 billion, up $11 million from year-end 2024.
Dafinchi