Unum Group’s (UNM - Free Report) fourth-quarter 2021 operating net income of 89 cents per share beat the Zacks Consensus Estimate by 8.4%. The bottom line decreased 22.6% year over year.
Improved premium income and strong returns in alternative invested asset portfolio were weighed down by high COVID-related mortality and infection levels.
Unum Group Price, Consensus and EPS Surprise
Operational Update
Total operating revenues of Unum Group were nearly $3 billion, up 0.6% year over year on the back of higher premiums and other income. The top line marginally beat the Zacks Consensus Estimate.
Net investment income decreased 7.2% to $550.8 million.
Total benefits and expenses decreased 32.8% year over year to $2.8 billion, largely attributable to lower in benefits and change in reserves for future benefits.
Quarterly Segment Update
Unum U.S.: Premium income was $1.5 billion, up 3% year over year.
Adjusted operating income was down 43.3% year over year to $81.4 million, attributable to lower income at the group disability line of business, wider loss at group life and accidental death and dismemberment line of business.
Unum International: Premium income increased 1% year over year at $177.5 million. Adjusted operating income was $27.1 million, up 30.9% year over year.
Unum UK line of business’ premium income was £114.5 million, up 5.1%, driven by growth in the in-force block resulting from the impact of rate increases in the group long-term disability product line and higher overall persistency. Adjusted operating income, in local currency, of £18.7 million was up 21.4%.
Benefit ratio of 81.4 deteriorated 580 basis points (bps) due to higher inflation-linked experience in benefits related to its group products.
Colonial Life: Premium income improved 1.1% to $423.3 million attributable to higher sales and a higher level of persistency. Sales increased 7.8% to $166.2 million. Adjusted operating income increased 12.4% to $80 million.
Benefit ratio improved 410 bps year over year to 52.5 driven by favorable incidence in all the product lines.
Closed Block: Premium income decreased 2.3% year over year to $244.5 million due to policy terminations and maturities, partially offset by premium rate increases on certain in-force businesses in the long-term care line of business. Adjusted operating income was $76.7 million, down 26.4% year over year.
Corporate: The segment incurred an operating loss of $45.7 million, wider than an operating loss of $42.7 million in the year-earlier quarter, attributable to higher interest and operating expenses.
Full-Year 2021 Highlights
Adjusted earnings were $4.35 per share, down 11.8% year over year. The bottom line beat the Zacks Consensus Estimate of $4.29.
Operating revenues of about $12 billion for 2021 inched down 0.2% year over year but marginally beat the consensus estimate.
Capital Management
As of Dec 31, 2021, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 395%.
Unum Group exited the quarter with cash and marketable securities worth $1.5 billion.
Book value per share of Unum Group improved 5.6% year over year to $56.37 as of Dec 31, 2021.
Unum bought back 1.9 million shares for $50 million in the fourth quarter.
Zacks Rank
Unum Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported fourth-quarter results so far, The Travelers Companies (TRV - Free Report) , RenaissanceRe Holdings Ltd. (RNR - Free Report) and The Progressive Corporation (PGR - Free Report) beat the Zacks Consensus Estimate for earnings.
Travelers’ core income of $5.20 per share surpassed the Zacks Consensus Estimate of $3.86 and increased 6% year over year. Total revenues rose 7% to about $9 billion and beat the Zacks Consensus Estimate of $8.7 billion.
Travelers’ net written premiums increased 10% year over year to a record $8 billion. The combined ratio deteriorated 130 bps year over year to 88.
RenaissanceRe’s operating earnings per share of $4.71 surpassed the Zacks Consensus Estimate by 27% and rebounded from the year-ago loss of $1.59 per share. Total revenues of $1.39 billion dipped 0.1% year over year.
RenaissanceRe’s gross premiums written surged 40.4% year over year to $1.3 billion. The combined ratio improved 3530 bps year over year to 79.4.
Progressive’s earnings per share of $1.05 beat the Zacks Consensus Estimate of 99 cents but declined 43.2% from the year-ago quarter.
Progressive’s net premiums written were $10.7 billion in the quarter, up 13% from $9.5 billion a year ago. The combined ratio deteriorated 630 bps from the prior-year quarter to 94.7.
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Unum Group’s (UNM - Free Report) fourth-quarter 2021 operating net income of 89 cents per share beat the Zacks Consensus Estimate by 8.4%. The bottom line decreased 22.6% year over year.
Improved premium income and strong returns in alternative invested asset portfolio were weighed down by high COVID-related mortality and infection levels.
Unum Group Price, Consensus and EPS Surprise
Operational Update
Total operating revenues of Unum Group were nearly $3 billion, up 0.6% year over year on the back of higher premiums and other income. The top line marginally beat the Zacks Consensus Estimate.
Net investment income decreased 7.2% to $550.8 million.
Total benefits and expenses decreased 32.8% year over year to $2.8 billion, largely attributable to lower in benefits and change in reserves for future benefits.
Quarterly Segment Update
Unum U.S.: Premium income was $1.5 billion, up 3% year over year.
Adjusted operating income was down 43.3% year over year to $81.4 million, attributable to lower income at the group disability line of business, wider loss at group life and accidental death and dismemberment line of business.
Unum International: Premium income increased 1% year over year at $177.5 million. Adjusted operating income was $27.1 million, up 30.9% year over year.
Unum UK line of business’ premium income was £114.5 million, up 5.1%, driven by growth in the in-force block resulting from the impact of rate increases in the group long-term disability product line and higher overall persistency. Adjusted operating income, in local currency, of £18.7 million was up 21.4%.
Benefit ratio of 81.4 deteriorated 580 basis points (bps) due to higher inflation-linked experience in benefits related to its group products.
Colonial Life: Premium income improved 1.1% to $423.3 million attributable to higher sales and a higher level of persistency. Sales increased 7.8% to $166.2 million. Adjusted operating income increased 12.4% to $80 million.
Benefit ratio improved 410 bps year over year to 52.5 driven by favorable incidence in all the product lines.
Closed Block: Premium income decreased 2.3% year over year to $244.5 million due to policy terminations and maturities, partially offset by premium rate increases on certain in-force businesses in the long-term care line of business. Adjusted operating income was $76.7 million, down 26.4% year over year.
Corporate: The segment incurred an operating loss of $45.7 million, wider than an operating loss of $42.7 million in the year-earlier quarter, attributable to higher interest and operating expenses.
Full-Year 2021 Highlights
Adjusted earnings were $4.35 per share, down 11.8% year over year. The bottom line beat the Zacks Consensus Estimate of $4.29.
Operating revenues of about $12 billion for 2021 inched down 0.2% year over year but marginally beat the consensus estimate.
Capital Management
As of Dec 31, 2021, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 395%.
Unum Group exited the quarter with cash and marketable securities worth $1.5 billion.
Book value per share of Unum Group improved 5.6% year over year to $56.37 as of Dec 31, 2021.
Unum bought back 1.9 million shares for $50 million in the fourth quarter.
Zacks Rank
Unum Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported fourth-quarter results so far, The Travelers Companies (TRV - Free Report) , RenaissanceRe Holdings Ltd. (RNR - Free Report) and The Progressive Corporation (PGR - Free Report) beat the Zacks Consensus Estimate for earnings.
Travelers’ core income of $5.20 per share surpassed the Zacks Consensus Estimate of $3.86 and increased 6% year over year. Total revenues rose 7% to about $9 billion and beat the Zacks Consensus Estimate of $8.7 billion.
Travelers’ net written premiums increased 10% year over year to a record $8 billion. The combined ratio deteriorated 130 bps year over year to 88.
RenaissanceRe’s operating earnings per share of $4.71 surpassed the Zacks Consensus Estimate by 27% and rebounded from the year-ago loss of $1.59 per share. Total revenues of $1.39 billion dipped 0.1% year over year.
RenaissanceRe’s gross premiums written surged 40.4% year over year to $1.3 billion. The combined ratio improved 3530 bps year over year to 79.4.
Progressive’s earnings per share of $1.05 beat the Zacks Consensus Estimate of 99 cents but declined 43.2% from the year-ago quarter.
Progressive’s net premiums written were $10.7 billion in the quarter, up 13% from $9.5 billion a year ago. The combined ratio deteriorated 630 bps from the prior-year quarter to 94.7.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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