We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Unum Group (UNM) to Report Q2 Earnings: What's in Store?
Read MoreHide Full Article
Unum Group (UNM - Free Report) is slated to report second-quarter 2021 results on Aug 3, after market close. The company delivered an earnings surprise of 6.12% in the last reported quarter.
Factors to Note
The Unum U.S. segment is likely to have been affected by unfavorable benefits experience, particularly in life product lines, and lower sales in Unum US voluntary benefits product line. The downside is likely to have been offset by higher persistency. The Zacks Consensus Estimate for second-quarter premium income at the Unum U.S. segment is pegged at $1.5 billion, suggesting an increase of 0.06% from the prior-year reported figure.
Colonial Life is also likely to have been impacted by lower sales, unfavorable benefits experience, particularly in life product line, and lower premium income. The downside was likely to have been offset by a favorable persistency trends and lower operating expenses. The Zacks Consensus Estimate for second-quarter premium income at the Colonial Life segment is pegged at $433 million, indicating a decline of 1.4% from the prior-year level.
The company expects the interest-adjusted loss ratio for long-term care line to trend back to long-term range with the regularization of mortality and incidence trends from COVID-19 impacts.
The company expects improved results in life insurance lines in the second quarter of 2021.
The company estimates of U.S. COVID-related mortality in the range of 50,000 to 60,000 in the second quarter.
The company expect Group Life earnings to improve approximately $60 million sequentially to nearly breakeven in the second quarter.
Decline in yield on invested assets and a decrease in the level of invested assets are likely to have weighed on net investment income. This downside is likely to have been partially offset by higher miscellaneous investment income and higher level of invested assets in other product lines. The Zacks Consensus Estimate for the same is pegged at $541 million, indicating a 4.9% decline from the prior-year quarter.
Expenses are likely to have increased due to higher benefits and change in reserves for future benefits and other expenses.
The Zacks Consensus Estimate for earnings per share is pegged at $1.13, indicating a decline of 8.13% from the year-ago reported figure.
Quantitative Model Prediction
Our proven model predicts an earnings beat for Unum Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: It has an Earnings ESP of +0.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Unum Group currently carries a Zacks Rank #3.
Other Stocks to Consider
Some stocks from the insurance space that also have the perfect mix of elements to surpass earnings estimates in the upcoming quarterly releases are as follows:
Image: Bigstock
Unum Group (UNM) to Report Q2 Earnings: What's in Store?
Unum Group (UNM - Free Report) is slated to report second-quarter 2021 results on Aug 3, after market close. The company delivered an earnings surprise of 6.12% in the last reported quarter.
Factors to Note
The Unum U.S. segment is likely to have been affected by unfavorable benefits experience, particularly in life product lines, and lower sales in Unum US voluntary benefits product line. The downside is likely to have been offset by higher persistency. The Zacks Consensus Estimate for second-quarter premium income at the Unum U.S. segment is pegged at $1.5 billion, suggesting an increase of 0.06% from the prior-year reported figure.
Colonial Life is also likely to have been impacted by lower sales, unfavorable benefits experience, particularly in life product line, and lower premium income. The downside was likely to have been offset by a favorable persistency trends and lower operating expenses. The Zacks Consensus Estimate for second-quarter premium income at the Colonial Life segment is pegged at $433 million, indicating a decline of 1.4% from the prior-year level.
The company expects the interest-adjusted loss ratio for long-term care line to trend back to long-term range with the regularization of mortality and incidence trends from COVID-19 impacts.
The company expects improved results in life insurance lines in the second quarter of 2021.
The company estimates of U.S. COVID-related mortality in the range of 50,000 to 60,000 in the second quarter.
The company expect Group Life earnings to improve approximately $60 million sequentially to nearly breakeven in the second quarter.
Decline in yield on invested assets and a decrease in the level of invested assets are likely to have weighed on net investment income. This downside is likely to have been partially offset by higher miscellaneous investment income and higher level of invested assets in other product lines. The Zacks Consensus Estimate for the same is pegged at $541 million, indicating a 4.9% decline from the prior-year quarter.
Expenses are likely to have increased due to higher benefits and change in reserves for future benefits and other expenses.
The Zacks Consensus Estimate for earnings per share is pegged at $1.13, indicating a decline of 8.13% from the year-ago reported figure.
Quantitative Model Prediction
Our proven model predicts an earnings beat for Unum Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: It has an Earnings ESP of +0.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Unum Group Price and EPS Surprise
Unum Group price-eps-surprise | Unum Group Quote
Zacks Rank: Unum Group currently carries a Zacks Rank #3.
Other Stocks to Consider
Some stocks from the insurance space that also have the perfect mix of elements to surpass earnings estimates in the upcoming quarterly releases are as follows:
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +1.35% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
NMI Holdings Inc (NMIH - Free Report) has an Earnings ESP of +3.56% and a Zacks Rank of 3, at present.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +7.56% and a Zacks Rank #2.