A Letter from our
President and CEO,
Rick McKenney

To our shareholders, customers and colleagues

At Unum, our purpose drives us every day to grow our business. We know that a relentless focus on helping the working world thrive throughout life’s moments is what unifies the efforts of nearly 11,000 Unum employees across the globe, who are there when it matters most for our customers and their families.

Our results in 2022 reflect the company’s proven ability to meet the growing demand for our products and services. It was a historic year for us, with record levels of after-tax operating earnings and capital. A cadence of strong execution, strategic investments and meaningful innovation fueled this performance, and favorably positions Unum for continued growth as a market leader.

Since our founding in 1848, we have consistently delivered on our promise to provide financial protection to those who put their trust in us. As we celebrate our 175th anniversary, it’s not only a time to reflect but an opportunity to look ahead toward our bright future. With a clear purpose, growing market demand for what we do and strong momentum, we are enthusiastic about the opportunities ahead for us.

Review of 2022 Performance

The events of the last few years shined a bright light on the importance of financial protection benefits, leave management, and other workplace solutions. Unum entered 2022 well-positioned to meet these needs for companies and their workers. The positive momentum that began in 2021 accelerated last year as strong employment levels and wage growth combined with higher demand of our offerings to deliver record results. Strong sales performance in our group and voluntary lines further aided top line growth, while retention remained healthy across all products as customers continued to value our offerings. As a result, premium income returned to pre-pandemic levels across our core businesses.

Being there in times of need is why we exist and reinforces the critical importance of providing benefits through the workplace. In 2022, we delivered on our purpose by paying nearly $8 billion in benefits to individuals and their families. Building on our long-standing foundation of disability leadership, we helped approximately 350,000 people return to work through robust vocational support and empathetic partnerships between people, medical professionals and employers. This same commitment to customers also drives us to manage our operations well. Our business model remains strong as prudent underwriting and customer-oriented management of our claims process have resulted in solid margins. In addition, significant investments in our business enabled us to deliver new products and services that enhanced the experiences for both our individual and employer customers.

2022 Performance by the Numbers1

Our strong execution resulted in an accelerated recovery of our business and we are well-positioned for continued growth and value creation.


  • Premium income of $9.6 billion, up 1.5% from 2021
  • After-tax adjusted operating earnings per share growth of 43% over 2021
  • Adjusted operating return on equity of 11.6%
  • Book value per share, excluding accumulated other comprehensive income, of $60.45, up 10.7% from 2021


  • Holding company liquidity of $1.6 billion, amongst the highest levels we’ve seen
  • Risk-based capital of approximately 420%, in excess of our targeted level of over 350%
  • Leverage of 23.7%, which has declined steadily over the last several years
  • Increased the quarterly dividend 10% to $0.33 per share, while paying $255 million in dividends for the year
  • Repurchased $200 million of shares

  1. In 2018, the Financial Accounting Standards Board issued Accounting Standard Update 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts.” This update significantly amends the accounting and disclosure requirements for long-duration insurance contracts. We adopted this guidance effective January 1, 2023 with changes applied as of January 1, 2021. The discussion included herein does not include consideration of the impacts of this new accounting standard.

Guided by Our Purpose and Culture

Our purpose of helping the working world thrive is not just something we say, but a calling that guides everything we do. With nearly 2 out of 3 people living paycheck to paycheck, and 1 in 4 workers being disabled at some point in their career, the need for financial protection is greater than ever. At the same time, companies are searching for ways to better support employee wellbeing through efficient and transparent leave management, smart benefits for life’s unexpected moments, and access to mental health resources.

What we do — and the people we help — converge at the workplace. While employees overwhelmingly look to their employer to curate their benefits, companies look to us to provide innovative workplace solutions. With more than 180,000 businesses relying on our industry-leading employee benefits and services, we protect nearly 45 million workers through these trusted relationships.

Surrounding our purpose is a clear set of values that ensure our people put customers first. It starts with doing the right thing for those who count on us. We’re proud that Ethisphere named us one of the World’s Most Ethical Companies for the third year in a row, a designation that speaks to our commitment to doing business the right way. We also operate with a caring spirit, a principle that guides our people to engage with compassion, whether it’s a customer on claim, a community partner in need or a coworker reaching out for support.

Our passion for helping others informs our advocacy for positive change in our communities.

Through strong and lasting partnerships with community organizations, we direct financial assistance to promote equitable access and resources to education, health and wellbeing. Our matching gifts program and company volunteer events amplify the impact of our people. A nimble approach to these efforts allows us to quickly respond to emerging needs. For instance, we marked the tenth year of our Education Leaders Experience, a program that connects educators with community, business and policy leaders to promote greater awareness of workforce challenges. We also provided financial and volunteer support of humanitarian efforts to aid Ukrainian refugees through our Unum Poland business. Across our geographic footprint, Unum donated $12 million in 2022 to enhance educational opportunities, promote wellbeing and help our communities grow stronger.

At our own workplace, we’ve leaned into helping employees become their best selves. Our commitment to inclusion means greater diversity of thought and backgrounds that provide a richer experience for our people and help us better serve those around us. By listening to what our people have to say — through regular virtual CEO-led check-ins, town halls, annual engagement surveys and ongoing conversations between employees and their managers — we foster genuine connection.

We are gratified that our commitment to employees and the workplace has been recognized by leading organizations for excellence across a wide range of categories, including diversity, disability and LGBTQ equality, health and wellbeing, and community engagement.

Modernizing the Benefits Experience

With the market dynamics of workplace benefits continuously evolving, remaining an industry leader requires a deep understanding of both today’s and tomorrow’s challenges. People want ready access to benefits when they’re needed, while businesses need information at their fingertips and intuitive processes. Leveraging the deep expertise of our people, we meet employees and employers where they are, reimagining every interaction to modernize and simplify the benefits and administration process.

Employees look to Unum to provide innovative and streamlined experiences that make their lives easier and we have many examples of how we are meeting that need. Unum Total Leave, for instance, employs a transformational digital platform to better manage all aspects of employee leave. Launched nationwide in 2022, this comprehensive approach to leave management demystifies a benefit of growing importance to employees and employers alike. In our Unum and Colonial Life voluntary benefit brands, we help individuals build their own financial protection plan that provides benefits in the event of a critical illness diagnosis, personal injury, expensive hospital stays and more. Additionally, in the U.K., Help@hand is our award-winning app offering employees access to a wide range of health and wellness support services they need for today’s busy life. These solutions not only address the needs of a multigenerational workforce, they also enable employers to strengthen their overall benefit package in a cost-effective way — a key part of retaining top talent in today’s competitive talent market.

At the same time, employers look to us as a partner that leverages technology to create a frictionless approach to managing employee benefits. One example is MyUnum, our in-house digital environment with always-on self-service and support, digital enrollment and a simple claims experience. Companies with existing benefits administration platforms can leverage Unum HR Connect to put the data businesses need at their fingertips. HR Connect gives valuable time back to HR professionals by integrating employee benefits with a customer’s existing back-end systems and automating tasks like billing and benefits eligibility. And this year, we are rolling out Gathr from Colonial Life. It is our proprietary enrollment and benefits administration platform enabling smaller companies to have a modern experience for employees. Robust back-end capabilities also bring efficiency and transparency to benefits administration.

Accelerating Long-Term Growth

The strength of our team and consistency in our strategic focus allows us to chart our course in 2023 and beyond. Unum operates in very attractive markets with sustained and growing demand for our products and services. We know that cloud-based HR technology is driving rapid change for our customers, representing an opportunity for us. How we connect with and serve our customers is critical in bolstering our marketleading positions, which is aided by our scale and deep expertise. Coupled with a favorable operating environment, strong capital position and prudent risk management, we are in position to continue advancing the momentum we gained in 2022.

We have a proven ability to transform our business, coupled with capitalizing on the economic and competitive environment to fuel our growth in an efficient way. After seeing the investments we’ve made over the last several years come to fruition, we are on track this year to increase our annual funding of innovation and accelerate our transformation as a digital-first benefits company. The current market has played to our advantage as a focused employee benefits provider that has made significant investments in talent and in technology to grow through economic cycles.

Looking Ahead

Unum has emerged from the pandemic in a stronger position than when we entered. Across the enterprise, we have healthy franchises that are well positioned to continue to deliver attractive returns. Our business model is resilient, with a primary focus on growth, underpinned with effective risk management and operating discipline.

For 175 years, we have helped the working world thrive. We entered 2023 with ample financial flexibility to chart our course. The Unum team is excited about the growth trajectory we have in the coming years as we diligently serve our customers.

Rick McKenney
President and CEO, Unum Group