Unum Group on Tuesday reported net income of $265.5 million ($1.30 per diluted common share) for the second quarter of 2020, compared to net income of $281.2 million ($1.33 per diluted common share) for the second quarter of 2019.
Included in net income for the second quarter of 2020 is an after-tax impairment loss on the right-of-use (ROU) asset related to one of our operating leases for office space that we are no longer using to support our general operations of $10 million ($0.05 per diluted common share), as well as a net after-tax realized investment gain on the company’s investment portfolio of $25.4 million ($0.12 per diluted common share). Included in net income for the second quarter of 2019 is a net after-tax realized investment loss on the company's investment portfolio of $5.7 million ($0.03 per diluted common share). Excluding the items above, after-tax adjusted operating income was $250.1 million ($1.23 per diluted common share) in the second quarter of 2020, compared to $286.9 million ($1.36 per diluted common share) in the second quarter of 2019.
“In the middle of a very challenging environment our team executed well and we are proud of our responsiveness to our customers in this time of need. We also produced solid second quarter financial results, with good operating profits and continued financial strength." said Richard P. McKenney, president and chief executive officer. "As we look to the second half of the year there is still uncertainty to the path of the pandemic and its corresponding effects. We will continue to adapt to the changing landscape as we serve the needs of our customers."
Unum measures and analyzes segment performance on the basis of "adjusted operating income" or "adjusted operating loss", which differ from income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for income before income tax or net income, it was stated.
Unum US reported adjusted operating income of $231.9 million in the second quarter of 2020, a decrease of 8.8 percent from $254.3 million in the second quarter of 2019. Premium income for the segment increased 1.2 percent to $1,522.7 million in the second quarter of 2020, compared to premium income of $1,504.5 million in the second quarter of 2019. Net investment income for the segment decreased 3.9 percent to $176.9 million in the second quarter of 2020, compared to $184.1 million in the second quarter of 2019.
Within the Unum US operating segment, the group disability line of business reported a 9.1 percent decrease in adjusted operating income to $76.0 million in the second quarter of 2020, compared to $83.6 million in the second quarter of 2019. Premium income for the group disability line of business increased 3.1 percent to $664.6 million in the second quarter of 2020, compared to $644.8 million in the second quarter of 2019, driven by growth in the in-force block resulting from higher prior period sales, partially offset by lower persistency. Net investment income decreased 2.4 percent to $96.5 million in the second quarter of 2020, compared to $98.9 million in the second quarter of 2019, driven by a decline in the yield and level of invested assets. The benefit ratio for the second quarter of 2020 was 72.8 percent, compared to 74.7 percent in the second quarter of 2019, due primarily to higher claim recoveries in our group long-term disability product line, partially offset by higher claims incidence. Group long-term disability sales were $55.2 million in the second quarter of 2020, an increase of 13.3 percent from $48.7 million in the second quarter of 2019. Group short-term disability sales were $29.6 million in the second quarter of 2020, a decrease of 19.1 percent from $36.6 million in the second quarter of 2019. Persistency in the group long-term disability product line was 89.4 percent for the first half of 2020, compared to 90.5 percent for the first half of 2019. Persistency in the group short-term disability product line was 86.9 percent for the first half of 2020, compared to 90.3 percent for the first half of 2019.
The group life and accidental death and dismemberment line of business reported adjusted operating income of $19.4 million in the second quarter of 2020, a decrease of 69.1 percent from $62.7 million in the second quarter of 2019. Premium income for this line of business decreased 1.2 percent to $456.3 million in the second quarter of 2020, compared to $461.7 million in the second quarter of 2019, driven primarily by lower sales and persistency. Net investment income decreased 13.7 percent to $23.3 million in the second quarter of 2020, compared to $27.0 million in the second quarter of 2019, due primarily to a decline in the yield on invested assets and lower miscellaneous investment income. The benefit ratio in the second quarter of 2020 was 81.8 percent, compared to 72.9 percent in the second quarter of 2019, due primarily to higher claims incidence in the group life product line resulting from the impacts of COVID-19. Sales of group life and accidental death and dismemberment products increased 5.2 percent in the second quarter of 2020 to $56.6 million, compared to $53.8 million in the second quarter of 2019. Persistency in the group life product line was 88.6 percent for the first half of 2020, compared to 91.2 percent for the first half of 2019. Persistency in the accidental death and dismemberment product line was 87.8 percent for the first half of 2020, compared to 90.1 percent for the first half of 2019.
The supplemental and voluntary line of business reported an increase of 26.4 percent in adjusted operating income to $136.5 million in the second quarter of 2020, compared to $108.0 million in the second quarter of 2019. Premium income for the supplemental and voluntary line of business increased 1.0 percent to $401.8 million in the second quarter of 2020, compared to $398.0 million in the second quarter of 2019, with growth in the individual disability and dental and vision product lines, mostly offset by a decline in the voluntary benefits product line. Net investment income decreased 1.9 percent to $57.1 million in the second quarter of 2020, compared to $58.2 million in the second quarter of 2019, due to a decline in the yield on invested assets, partially offset by an increase in the level of invested assets. The benefit ratio for the individual disability product line was 52.8 percent for the second quarter of 2020, compared to 53.5 percent for the second quarter of 2019, due to favorable claim recoveries and higher mortality experience. The benefit ratio for the voluntary benefits product line was 43.1 percent in the second quarter of 2020, compared to 42.5 percent for the second quarter of 2019, due to lower policy terminations, partially offset by lower claim incidence. The benefit ratio for the dental and vision product line was 36.0 percent for the second quarter of 2020, compared to 71.6 percent for the second quarter of 2019, driven by lower claims incidence due to the impacts of COVID-19. Relative to the second quarter of 2019, sales in the individual disability product line were generally consistent in the second quarter of 2020 at $14.2 million. Sales in the voluntary benefits product line declined 13.0 percent in the second quarter of 2020 to $47.0 million. Sales in the dental and vision product line totaled $12.7 million for the second quarter of 2020, a decrease of 10.6 percent compared to the second quarter of 2019. Persistency in the individual disability product line was 90.1 percent for the first half of 2020, compared to 90.3 percent for the first half of 2019. Persistency in the voluntary benefits product line was 73.0 percent for the first half of 2020, compared to 72.7 percent for the first half of 2019. Persistency in the dental and vision product line was 81.7 percent for the first half of 2020, compared to 84.7 percent for the first half of 2019.
The Unum International segment reported adjusted operating income of $15.1 million in the second quarter of 2020, a decrease of 50.8 percent from $30.7 million in the second quarter of 2019. Premium income decreased 0.9 percent to $157.1 million in the second quarter of 2020, compared to $158.6 million in the second quarter of 2019. Net investment income decreased 41.3 percent to $26.3 million in the second quarter of 2020, compared to $44.8 million in the second quarter of 2019. Sales increased 1.3 percent to $30.1 million in the second quarter of 2020, compared to $29.7 million in the second quarter of 2019.
The Unum UK line of business reported adjusted operating income, in local currency, of £10.1 million in the second quarter of 2020, a decrease of 55.5 percent from £22.7 million in the second quarter of 2019. Premium income was £111.7 million in the second quarter of 2020, an increase of 1.9 percent from £109.6 million in the second quarter of 2019, driven by sales growth and the impact of rate increases in the group long-term disability product line. Net investment income was £19.9 million in the second quarter of 2020, a decrease of 40.6 percent from £33.5 million in the second quarter of 2019, due to lower miscellaneous investment income resulting from a higher than normal level of bonds calls in the second quarter of 2019, lower investment income from inflation index-linked bonds which we invest in to support the claim reserves associated with certain group policies that provide for inflation-linked increases in benefits, and a decline in the yield on fixed-rate bonds. The benefit ratio in the second quarter of 2020 was 82.5 percent, compared to 85.6 percent in the second quarter of 2019, due to lower inflation-linked experience in benefits related to our group products and the reduction in the claim reserve discount rate to recognize the impact on future portfolio yields from the higher than normal level of bond calls experienced during the second quarter of 2019, partially offset by lower claim resolutions due to disruption in our claims processes and higher claims incidence in the group life product line, both resulting from the impacts of COVID-19. Sales increased 5.8 percent to £21.9 million in the second quarter of 2020, compared to £20.7 million in the second quarter of 2019. Persistency in the group long-term disability product line was 87.7 percent for the first half of 2020, compared to 89.5 percent for the first half of 2019. Persistency in the group life product line was 83.0 percent for the first half of 2020, compared to 88.4 percent for the first half of 2019. Persistency in the supplemental product line was 90.5 percent for the first half of 2020, compared to 92.2 percent for the first half of 2019.
Colonial Life reported a 7.7 percent increase in adjusted operating income to $90.9 million in the second quarter of 2020, compared to $84.4 million in the second quarter of 2019. Premium income increased 4.2 percent to $438.6 million in the second quarter of 2020, compared to $420.9 million in the second quarter of 2019, driven primarily by growth in the in-force block resulting from prior period sales growth and stable persistency. Net investment income was $36.8 million in the second quarter of 2020, which was generally consistent with the $37.2 million in the second quarter of 2019. The benefit ratio was 50.7 percent in the second quarter of 2020, compared to 51.4 percent in the second quarter of 2019, with favorable experience in the accident, sickness, and disability and cancer and critical illness lines of business, partially offset by unfavorable experience in the life product line.
Sales decreased 43.0 percent to $72.3 million in the second quarter of 2020, compared to $126.9 million in the second quarter of 2019. Persistency in Colonial Life was 77.5 percent for the first half of 2020, compared to 77.1 percent for the first half of 2019.
The Closed Block segment reported adjusted operating income of $36.7 million in the second quarter of 2020, an increase of 8.9 percent from $33.7 million in the second quarter of 2019. Premium income for this segment declined 3.4 percent in the second quarter of 2020, compared to the second quarter of 2019, due to continued policy terminations and maturities in the individual disability line of business, partially offset by premium rate increases on certain in-force business in the long-term care line of business. Net investment income decreased 8.0 percent to $326.3 million in the second quarter of 2020, compared to $354.5 million in the second quarter of 2019, due primarily to a decline in the net asset values on our private equity partnerships, which are booked on a one-quarter lag and reflect the impact of COVID-19 on economic conditions during the first quarter of 2020, partially offset by an increase in the level of invested assets.
The interest adjusted loss ratio for the long-term care line of business was 67.0 percent in the second quarter of 2020, compared to an interest adjusted loss ratio of 87.4 percent in the second quarter of 2019, driven primarily by higher claimant mortality and lower submitted claims. The interest adjusted loss ratio for long-term care for the rolling twelve months ended June 30, 2020 was 81.1 percent which is below our expected range. The interest adjusted loss ratio for the individual disability line of business was 89.5 percent in the second quarter of 2020, compared to 81.3 percent in the second quarter of 2019, driven primarily by higher submitted claims.
The Corporate segment reported an adjusted operating loss of $58.1 million in the second quarter of 2020, which excludes the impairment loss on the ROU asset of $12.7 million, compared to an adjusted operating loss of $43.8 million in the second quarter of 2019.