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) Q4 Earnings Miss Estimates, Revenues Beat
Read MoreHide Full Article
Unum Group’s (UNM - Free Report) fourth-quarter 2023 operating net income of $1.79 per share missed the Zacks Consensus Estimate by 3.8%. The bottom line, however, increased 25.1% year over year.
The quarterly results reflected a continued strong operating performance.
Operational Update
Total operating revenues of Unum Group were $3.2 billion, up 5% year over year, driven by higher premium income, other income and improved net investment income. The top line beat the Zacks Consensus Estimate by 0.8%.
Premiums increased 5.9% from the prior-year quarter to $2.6 billion. Our estimate and the Zacks Consensus Estimate were both pegged at $2.5 billion.
Total benefits and expenses increased 3.3% year over year to $2.7 billion, attributable primarily to higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses. Our estimate for the same was also $2.7 billion.
Quarterly Segment Update
Unum U.S.: Premium income was $1.7 billion, up 5.7% year over year.
Adjusted operating income rose 47.7% year over year to $342.1 million. The Zacks Consensus Estimate was pegged at $320 million.
Unum International: Premium income of $218.1 million decreased 22.3% year over year. Adjusted operating income was $39.4 million, down 28.5% year over year. The Zacks Consensus Estimate was pegged at $33.4 million.
The Unum U.K. line of business premium income was £149.1 million, up 12.9% from the year-ago quarter, primarily due to in-force block growth and higher premium as a result of a reinsurance transaction. Adjusted operating income, in local currency, of £30.9 million was down 32.2% from a year ago.
Sales increased 45.3% year over year.
Persistency increased in the group long-term disability but decreased in the group life business and supplemental product line of business.
Colonial Life: Premium income increased 3.4% from the prior-year figure to $434.8 million, driven by higher sales in prior periods and favorable persistency.
Sales increased 11.5% from the year-ago figure to $189.5 million. Adjusted operating income decreased 8.1% from the prior-year period to $87.8 million. The Zacks Consensus Estimate was pegged at $111 million.
The benefit ratio deteriorated 180 bps year over year to 53.2%, primarily due to an increase in reserves on model refinements in the life product line, partially offset by lower claim costs in the cancer and critical illness product line.
Closed Block: Adjusted operating income was $21.3 million, which decreased 52% year over year. Our estimate was $33.8 million, while the Zacks Consensus Estimate was $33.3 million.
Corporate: The segment incurred an adjusted operating loss of $36.5 million, narrower than the year-ago quarter’s loss of $37.5 million. The narrower loss was attributable primarily to an increase in net investment income. Our estimate for loss was $411 million, while the Zacks Consensus Estimate was pegged at a loss of $39.5 million.
Full-Year Highlights
For 2023, the company reported operating net income of $7.66 per share, up 19.7% year over year.
Total operating revenues of Unum Group were $3.2 billion, up 3.5% year over year. Premiums increased 4.5% to $10 billion, in line with our estimate.
Capital Management
As of Dec 31, 2023, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 415%.
Unum Group exited the fourth quarter with holding company liquidity worth $1.7 billion.
Book value per share grew 13% year over year to $49.91 as of Dec 31, 2023.
UNM bought back 1.8 shares for $76.6 million. Unum Group has $500 million worth of buyback authorization remaining.
2024 Guidance
UNM expects after-tax adjusted operating income per share to increase 7% to 9% in 2024.
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2023 core income of $7.01 per share, which beat the Zacks Consensus Estimate of $5.04. The bottom line more than doubled year over year, driven by higher underlying underwriting gain, lower catastrophe losses and higher net investment income. Travelers’ total revenues increased 13.5% from the year-ago quarter to $10.9 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 13% year over year to about $10 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.7 billion. TRV witnessed an underwriting gain of $1.4 billion, up more than three-fold year over year, driven by higher business volumes. The combined ratio improved 870 bps year over year to 85.8, driven by a lower underlying combined ratio and lower catastrophe losses.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
Net premiums written were $15.1 billion in the quarter, up 21% from $12.5 billion a year ago. PGR’s premiums beat our estimate of $14 billion. Net premiums earned grew 22% to $15.8 billion and beat our estimate of $14.8 billion.
Progressive’s combined ratio improved 520 bps from the prior-year quarter’s level to 88.7.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2023 operating income of $1.45 per share beat the Zacks Consensus Estimate of $1.35 by 7.4%. The bottom line improved 25% year over year. Operating revenues came in at $3.2 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income. The top line beat the consensus estimate by 1.3%
W.R. Berkley’s net premiums written were $2.7 billion, up 12% year over year. The figure was lower than our estimate of $2.8 billion. Pre-tax underwriting income increased 8.2% to $315.9 million. The consolidated combined ratio remained flat year over year at 88.4.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Unum Group (UNM) Q4 Earnings Miss Estimates, Revenues Beat
Unum Group’s (UNM - Free Report) fourth-quarter 2023 operating net income of $1.79 per share missed the Zacks Consensus Estimate by 3.8%. The bottom line, however, increased 25.1% year over year.
The quarterly results reflected a continued strong operating performance.
Operational Update
Total operating revenues of Unum Group were $3.2 billion, up 5% year over year, driven by higher premium income, other income and improved net investment income. The top line beat the Zacks Consensus Estimate by 0.8%.
Unum Group Price, Consensus and EPS Surprise
Unum Group price-consensus-eps-surprise-chart | Unum Group Quote
Premiums increased 5.9% from the prior-year quarter to $2.6 billion. Our estimate and the Zacks Consensus Estimate were both pegged at $2.5 billion.
Total benefits and expenses increased 3.3% year over year to $2.7 billion, attributable primarily to higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses. Our estimate for the same was also $2.7 billion.
Quarterly Segment Update
Unum U.S.: Premium income was $1.7 billion, up 5.7% year over year.
Adjusted operating income rose 47.7% year over year to $342.1 million. The Zacks Consensus Estimate was pegged at $320 million.
Unum International: Premium income of $218.1 million decreased 22.3% year over year. Adjusted operating income was $39.4 million, down 28.5% year over year. The Zacks Consensus Estimate was pegged at $33.4 million.
The Unum U.K. line of business premium income was £149.1 million, up 12.9% from the year-ago quarter, primarily due to in-force block growth and higher premium as a result of a reinsurance transaction. Adjusted operating income, in local currency, of £30.9 million was down 32.2% from a year ago.
Sales increased 45.3% year over year.
Persistency increased in the group long-term disability but decreased in the group life business and supplemental product line of business.
Colonial Life: Premium income increased 3.4% from the prior-year figure to $434.8 million, driven by higher sales in prior periods and favorable persistency.
Sales increased 11.5% from the year-ago figure to $189.5 million. Adjusted operating income decreased 8.1% from the prior-year period to $87.8 million. The Zacks Consensus Estimate was pegged at $111 million.
The benefit ratio deteriorated 180 bps year over year to 53.2%, primarily due to an increase in reserves on model refinements in the life product line, partially offset by lower claim costs in the cancer and critical illness product line.
Closed Block: Adjusted operating income was $21.3 million, which decreased 52% year over year. Our estimate was $33.8 million, while the Zacks Consensus Estimate was $33.3 million.
Corporate: The segment incurred an adjusted operating loss of $36.5 million, narrower than the year-ago quarter’s loss of $37.5 million. The narrower loss was attributable primarily to an increase in net investment income. Our estimate for loss was $411 million, while the Zacks Consensus Estimate was pegged at a loss of $39.5 million.
Full-Year Highlights
For 2023, the company reported operating net income of $7.66 per share, up 19.7% year over year.
Total operating revenues of Unum Group were $3.2 billion, up 3.5% year over year. Premiums increased 4.5% to $10 billion, in line with our estimate.
Capital Management
As of Dec 31, 2023, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 415%.
Unum Group exited the fourth quarter with holding company liquidity worth $1.7 billion.
Book value per share grew 13% year over year to $49.91 as of Dec 31, 2023.
UNM bought back 1.8 shares for $76.6 million. Unum Group has $500 million worth of buyback authorization remaining.
2024 Guidance
UNM expects after-tax adjusted operating income per share to increase 7% to 9% in 2024.
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 Some Other Insurers
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2023 core income of $7.01 per share, which beat the Zacks Consensus Estimate of $5.04. The bottom line more than doubled year over year, driven by higher underlying underwriting gain, lower catastrophe losses and higher net investment income. Travelers’ total revenues increased 13.5% from the year-ago quarter to $10.9 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 13% year over year to about $10 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.7 billion. TRV witnessed an underwriting gain of $1.4 billion, up more than three-fold year over year, driven by higher business volumes. The combined ratio improved 870 bps year over year to 85.8, driven by a lower underlying combined ratio and lower catastrophe losses.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
Net premiums written were $15.1 billion in the quarter, up 21% from $12.5 billion a year ago. PGR’s premiums beat our estimate of $14 billion. Net premiums earned grew 22% to $15.8 billion and beat our estimate of $14.8 billion.
Progressive’s combined ratio improved 520 bps from the prior-year quarter’s level to 88.7.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2023 operating income of $1.45 per share beat the Zacks Consensus Estimate of $1.35 by 7.4%. The bottom line improved 25% year over year. Operating revenues came in at $3.2 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income. The top line beat the consensus estimate by 1.3%
W.R. Berkley’s net premiums written were $2.7 billion, up 12% year over year. The figure was lower than our estimate of $2.8 billion. Pre-tax underwriting income increased 8.2% to $315.9 million. The consolidated combined ratio remained flat year over year at 88.4.