UUNMUnum Group

Unum insures employees against disability through employer benefit programmes.

The contract is signed with a company while its employees receive the cover: payments in case of illness, injury or disability. That channel is stable — the programme renews along with the benefits package, and the number of insured grows with employment and wages.

The legacy of the past is a book of long-term care policies sold decades ago at rates that proved too low: people live longer and care costs more. The company spent years strengthening reserves against those obligations and transferring part of the risk to reinsurers. Risks: employment, interest rates and reserve adequacy. The dividend is raised and buybacks are active.