Unum Group completed a $300 million senior notes offering on November 14, 2025, issuing 2035‑maturity notes with a 5.25% coupon. The proceeds will be used to retire $275 million of 3.875% senior notes that matured on November 5, 2025, thereby extending the company’s debt horizon and reducing short‑term liquidity risk.
The refinancing decision follows a mixed earnings picture in the third quarter of 2025. Revenue rose to $3.38 billion, beating consensus expectations of $3.33 billion, driven by stronger demand in the Unum US and Colonial Life segments. However, adjusted after‑tax operating income per share fell to $2.09 from $2.15 expected, reflecting higher claims costs in disability and life insurance and a modest decline in sales in the Unum US segment.
By retiring the older, lower‑coupon notes, Unum preserves capital while accepting a higher coupon rate. The new 5.25% rate reflects current market conditions and the company’s strong credit profile, as evidenced by an AM Best “bbb+” long‑term issue rating. The move aligns with Unum’s strategy of maintaining robust liquidity and returning capital to shareholders through dividends and share repurchases.
Management emphasized that the refinancing supports the company’s long‑term capital structure strategy. CFO David R. Smith noted that the new notes provide a stable, long‑term funding source that reduces refinancing risk and allows the company to focus on growth initiatives in its core benefit lines. The company also highlighted its commitment to maintaining a strong RBC ratio and liquidity position.
The transaction is part of Unum’s broader effort to balance its portfolio of benefits, including disability, life, and critical‑illness products. While the company faced higher-than‑expected claims in the U.K. and U.S. markets, the refinancing helps mitigate the impact of those headwinds by extending debt maturity and preserving cash flow.
Overall, the $300 million senior notes offering strengthens Unum’s capital position, supports its liquidity strategy, and signals confidence in the company’s creditworthiness and future cash flows. The refinancing aligns with Unum’s ongoing commitment to shareholder returns and long‑term value creation.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.