Unum Group (NYSE:UNM) Q3 2022 Earnings Conference Call November 2, 2022 8:00 AM ET

Company Participants

Matthew Royal - Chief Risk Officer & SVP, IR

Richard McKenney - President, CEO & Director

Steven Zabel - EVP & CFO

Mark Till - EVP & CEO, Unum International

Michael Simonds - EVP & COO

Timothy Arnold - EVP, Voluntary Benefits & President, Colonial Life

Conference Call Participants

Erik Bass - Bernstein Autonomous

Ryan Krueger - KBW

Alexander Scott - Goldman Sachs

Suneet Kamath - Jefferies

Tracy Benguigui - Barclays Bank

Thomas Gallagher - Evercore ISI

Jamminder Bhullar - JPMorgan Chase & Co.

Operator

Hello, everyone, and welcome to the Unum Group Third Quarter 2022 Earning Results Conference Call. My name is Alex. I'll be coordinating the call today. [Operator Instructions].

I will now hand over to your host, Matt Royal, Senior Vice President of Investor Relations. Matt, please go ahead.

Matthew Royal

Thank you, Alex. Good morning, and welcome, everyone. I'm excited to be hosting my first call, where we will be discussing the third quarter 2022 earnings for Unum Group. Our remarks today will include forward-looking statements, which are statements that are not of current or historical fact. As a result, actual results may differ materially from results suggested by these forward-looking statements. Information concerning factors that could cause results to differ appears in our filings with the Securities and Exchange Commission, and are also located in the sections titled Cautionary Statement regarding Forward-Looking Statements and Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2021, and our subsequent quarterly reports on Form 10-Q. Our SEC filings can be found in the Investors section of our website at www.unum.com.

I remind you that the statements in today's call speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements. A presentation of the most directly comparable GAAP measures and reconciliations of any non-GAAP financial measures included in today's presentation can be found in our statistical supplement on our website in the Investors section.

Yesterday afternoon, Unum reported third quarter 2022 net income of $410.7 million or $2.04 per diluted common share, an increase of $328.6 million or $1.60 per diluted common share in the third quarter of 2021. Net income for the third quarter of 2022 included the after-tax amortization of the cost of reinsurance of $12.1 million or $0.06 per diluted common share, a net after-tax investment loss on the company's investment portfolio of $3.4 million or $0.02 per diluted common share and the reserve decrease related to reserve assumption updates of $122.5 million or $0.61 per diluted common share. Net income in the third quarter of 2021 included the after-tax impairment loss on internal-use software of $9.6 million or $0.05 per diluted common share, the after-tax amortization of the cost of reinsurance of $15.5 million or $0.08 per diluted common share.