AM Best Affirms Credit Ratings of Unum Group and Its Core U.S. Life/Health Subsidiaries

AM Best affirms Unum’s core insurance and debt ratings with stable outlooks, citing strong capitalization, earnings and investment performance.

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OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of Unum Insurance Group. These companies are the core U.S. life/health (L/H) insurance subsidiaries of Unum Group (Unum) (headquartered in Chattanooga, TN) [NYSE: UNM]. In addition, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the Long-Term Issue Credit Ratings (Long-Term IR) of Unum. The outlook of these Credit Ratings (ratings) is stable. (See below for a complete listing of the L/H subsidiaries and the Long-Term IRs.)

The ratings reflect Unum’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Despite capital growth being partially constrained by dividend payments, Unum Insurance Group maintains the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment is further supported by strong liquidity metrics and positive quality of capital. The group’s conservatively managed and well diversified investment portfolio historically performs with higher yields than industry benchmarks and is in line with industry peers.

Unum has increasingly used reinsurance to manage its balance sheet risk strategically and its reinsurance program utilizes high-quality reinsurers to de-risk its balance sheet and protect capital. Additionally, through a series of both internal actions taken by management and external reinsurance transactions, Unum has substantially reduced its individual long-term care exposure and capital demands for its closed block. However, Unum does maintain an exposure to group long-term care, which has a lower risk profile.

The group has continued to report strong operating performance metrics with diversified earnings across all lines of business. Its profitability ratios are comparatively favorable year over year. Investment income has more than offset any underwriting volatility and continues to be a large contributor to the group’s net income. Furthermore, Unum’s business profile is assessed as favorable through its strong market position across products in the U.S. domestic market and an international geographic reach. AM Best will continue to monitor Unum’s reserve adequacy on its closed block of long-term care business.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with stable outlooks for the following life/health subsidiaries of Unum Group:

• Unum Life Insurance Company of America
• Unum Insurance Company
• Provident Life and Accident Insurance Company
• The Paul Revere Life Insurance Company
• Colonial Life & Accident Insurance Company
• First Unum Life Insurance Company
• Provident Life and Casualty Insurance Company
• Starmount Life Insurance Company

The following Long-Term IRs have been affirmed with stable outlooks:

Unum Group—
- “bbb+” (Good) on $250 million 6.75% senior unsecured notes, due 2028
- “bbb+” (Good) on $200 million 7.25% senior unsecured notes, due 2028
- “bbb+” (Good) on $400 million 4.00% senior unsecured notes, due 2029
- “bbb+” (Good) on $250 million 7.375% senior unsecured notes, due 2032
- “bbb+” (Good) on $300 million 5.25% senior unsecured notes, due 2035
- “bbb+” (Good) on $250 million 5.75% senior unsecured notes, due 2042
- “bbb+” (Good) on $250 million 5.75% senior unsecured notes, due 2042
- “bbb+” (Good) on $450 million 4.50% senior unsecured notes, due 2049
- “bbb+” (Good) on $600 million 4.125% senior unsecured bonds, due 2051
- “bbb+” (Good) on $400 million 6.0% senior unsecured notes, due 2054
- “bbb-” (Good) on $300 million 6.25% junior subordinated notes, due 2058

Provident Financing Trust I—
- “bbb-” (Good) on $300 million 7.405% capital securities, due 2038

The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:

Unum Group—
- “bbb+” (Good) on senior unsecured
- “bbb” (Good) on subordinated
- “bbb-” (Good) on preferred stock

Unum Group Financing Trust I and II—
- “bbb-” (Good) on preferred securities

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260916252175/en/

Paul Frost
Senior Financial Analyst
+1 908 882 1768
paul.frost@ambest.com

Wayne Kaminski
Associate Director
+1 908 882 1916
wayne.kaminski@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

Source: AM Best

Key Terms

financial strength rating (fsr) financial

A financial strength rating (FSR) is an assessment of a company's ability to meet its financial commitments, such as paying debts or funding operations. Think of it as a report card indicating how solid and reliable a company is financially. Investors use this rating to gauge the level of risk involved in investing or doing business with that company.

enterprise risk management (erm) financial

Enterprise risk management (ERM) is a structured approach organizations use to identify, assess, and address potential problems that could disrupt their operations or goals. It’s like a safety system that helps a company prepare for uncertainties, ensuring it can navigate challenges smoothly. For investors, ERM matters because it signals how well a company manages risks that could impact its stability and long-term success.

senior unsecured notes financial

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

shelf registration regulatory

Shelf registration is when a company gets permission ahead of time to sell new stocks or bonds over a period of time instead of all at once. It matters to investors because it lets a company raise money quickly when needed, but it can also change the value of existing shares if many new ones are sold.

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