Unum Group (NYSE:UNM) Q4 2022 Earnings Call Transcript

Suneet Kamath: Got it. And then maybe just one quick follow-up. As interest rates declined, you guys were taking action on that new claims discount rate by kind of lowering it. Have you started to increase that now that rates have risen? And how do you think about that vis-a-vis pricing?

Steve Zabel: Yes. I would say we did increase it, I forgot what the percent was, but we did increase it over the past year when rates go up. But what’s really interesting is when we get into the new LDTI accounting basis, those discount rates are going to be based more on the locked-in kind of market rates that you see. And so it’s going to be a little bit more prescribed. And so that will create a bit of a different dynamic going forward with how we think about discount rates. I’m not sure it’s going to really change how we philosophically think about pricing and what we want to earn on our portfolio, but there is going to be kind of that difference with how the GAAP accounting takes place.

Suneet Kamath: Got it. Okay, thanks.

Rick McKenney: Thanks, Suneet.

Steve Zabel: Thanks, Suneet.

Operator: Thank you. There are no additional questions waiting at this time. So I’d like to pass the conference back over to Rick McKenney for any closing remarks. Please go ahead.

Rick McKenney: Great. Thank you, Bailey. Thanks, everybody, for joining us today. Appreciate it. Unum had some very good results over the course of 2022. We’re very happy about the momentum we carry into 2023, and we look forward to taking you through some of the details around that as we look out over the next year and several years at our upcoming Investor Day meeting. I look forward to hearing from you then. And that ends today’s call. Thank you very much.

Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.