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Unum (UNM) Down 2.2% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Unum (UNM - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Unum due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Unum Group Q2 Earnings Miss, Revenues Top, Premiums Rise Y/Y
Unum Group’s second-quarter 2025 operating net income of $2.07 per share missed the Zacks Consensus Estimate by 7.2%. The bottom line decreased 4.2% year over year. The quarterly results reflected weakness in the Unum U.S, Corporate segments and Closed Block segments, partially offset by higher premiums across Unum International, Colonial Life.
Operational Update
Total operating revenues of Unum Group were $3.4 billion, up 4.2% year over year, driven by higher premium income and improved net investment income. The top line beat the Zacks Consensus Estimate by 1.7%. Premiums increased 4.6% from the prior-year quarter to $2.7 billion. The metric beat the Zacks Consensus Estimate by whiskers.
Total benefits and expenses increased 7.6% year over year to $2.9 billion, largely attributable to higher policy benefits, including remeasurement gain, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses. Our estimate was 2.8 billion.
Quarterly Segment Update
Unum U.S.: Premium income was $1.8 billion, up 3.9% year over year. Adjusted operating income declined 11% year over year to $318.2 million. This was attributable to lower adjusted operating income at group disability as well as group life and accidental death and dismemberment. An increase in supplemental and voluntary line’s adjusted operating income limited the downside. The Zacks Consensus Estimate was pegged at $351 million. Our estimate was $354.4 million.
Unum International: Premium income of $271.1 million increased 18.5% year over year. Adjusted operating income was $41.6 million, down 2.1% year over year. Our estimate was $43.7 million.
The Unum U.K. line of business premium income was £166.9 million, up 9.9% from the year-ago quarter due to in-force block growth. Adjusted operating income, in local currency, of £29.4 million was down 9.5% from a year ago. The benefit ratio was 75, which deteriorated 550 basis points (bps) owing to higher inflation-linked experience in benefits and higher incidence in the group long-term disability product line, partially offset by favorable incidence in the group life product line. Sales decreased 13.5% year over year to £38.3 million. Persistency increased in the group long-term disability, group life product line and the supplemental line of business.
Colonial Life: Premium income rose 3.6% from the prior-year figure to $462.1 million, primarily due to prior period sales and favorable overall persistency. Sales increased 2.9% from the year-ago figure to $126.5 million. Adjusted operating income increased 0.4% from the prior-year period to $117.4 million. Our estimate was $115.8 million, while the Zacks Consensus Estimate was $122 million. Persistency was 78.5%, which increased 30 bps year over year. The benefit ratio deteriorated 50 bps year over year to 48.3, primarily due to unfavorable benefit experience in the accident, sickness, and disability product line.
Closed Block: Adjusted operating income was $3.9 million, which declined 92.5% year over year. Our estimate was $39.7 million, while the Zacks Consensus Estimate was pegged at $33.6 million.
Corporate: The segment incurred an adjusted operating loss of $31.7 million against $45.3 million earned in the year-ago quarter due to an increase in net investment income, driven by an increase in miscellaneous investment income and an increase in the level of invested assets. Our estimate for loss was $48.2 million, while the Zacks Consensus Estimate was pegged at a loss of $45.3 million.
Capital Management
As of June 30, 2025, the weighted average risk-based capital ratio for the company’s traditional U.S. insurance companies was approximately 485%. Unum Group exited the second quarter of 2025 with liquidity worth $1.9 billion. Book value per share grew 18.2% year over year to $65.7 as of June 30, 2025. UNM bought back 3.8 million shares for $303.3 million.
2025 Guidance
For 2025, UNM expects a revised after-tax adjusted operating income per share of approximately $8.50 compared with $8.44 in 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -5.34% due to these changes.
VGM Scores
Currently, Unum has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Unum has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Unum belongs to the Zacks Insurance - Accident and Health industry. Another stock from the same industry, Amerisafe (AMSF - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Amerisafe reported revenues of $76.14 million in the last reported quarter, representing a year-over-year change of +0.2%. EPS of $0.53 for the same period compares with $0.58 a year ago.
Amerisafe is expected to post earnings of $0.54 per share for the current quarter, representing a year-over-year change of -6.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Amerisafe has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Unum (UNM) Down 2.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Unum (UNM - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Unum due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Unum Group Q2 Earnings Miss, Revenues Top, Premiums Rise Y/Y
Unum Group’s second-quarter 2025 operating net income of $2.07 per share missed the Zacks Consensus Estimate by 7.2%. The bottom line decreased 4.2% year over year. The quarterly results reflected weakness in the Unum U.S, Corporate segments and Closed Block segments, partially offset by higher premiums across Unum International, Colonial Life.
Operational Update
Total operating revenues of Unum Group were $3.4 billion, up 4.2% year over year, driven by higher premium income and improved net investment income. The top line beat the Zacks Consensus Estimate by 1.7%. Premiums increased 4.6% from the prior-year quarter to $2.7 billion. The metric beat the Zacks Consensus Estimate by whiskers.
Total benefits and expenses increased 7.6% year over year to $2.9 billion, largely attributable to higher policy benefits, including remeasurement gain, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses. Our estimate was 2.8 billion.
Quarterly Segment Update
Unum U.S.: Premium income was $1.8 billion, up 3.9% year over year.
Adjusted operating income declined 11% year over year to $318.2 million. This was attributable to lower adjusted operating income at group disability as well as group life and accidental death and dismemberment. An increase in supplemental and voluntary line’s adjusted operating income limited the downside. The Zacks Consensus Estimate was pegged at $351 million. Our estimate was $354.4 million.
Unum International: Premium income of $271.1 million increased 18.5% year over year. Adjusted operating income was $41.6 million, down 2.1% year over year. Our estimate was $43.7 million.
The Unum U.K. line of business premium income was £166.9 million, up 9.9% from the year-ago quarter due to in-force block growth. Adjusted operating income, in local currency, of £29.4 million was down 9.5% from a year ago. The benefit ratio was 75, which deteriorated 550 basis points (bps) owing to higher inflation-linked experience in benefits and higher incidence in the group long-term disability product line, partially offset by favorable incidence in the group life product line. Sales decreased 13.5% year over year to £38.3 million. Persistency increased in the group long-term disability, group life product line and the supplemental line of business.
Colonial Life: Premium income rose 3.6% from the prior-year figure to $462.1 million, primarily due to prior period sales and favorable overall persistency. Sales increased 2.9% from the year-ago figure to $126.5 million. Adjusted operating income increased 0.4% from the prior-year period to $117.4 million. Our estimate was $115.8 million, while the Zacks Consensus Estimate was $122 million. Persistency was 78.5%, which increased 30 bps year over year.
The benefit ratio deteriorated 50 bps year over year to 48.3, primarily due to unfavorable benefit experience in the accident, sickness, and disability product line.
Closed Block: Adjusted operating income was $3.9 million, which declined 92.5% year over year. Our estimate was $39.7 million, while the Zacks Consensus Estimate was pegged at $33.6 million.
Corporate: The segment incurred an adjusted operating loss of $31.7 million against $45.3 million earned in the year-ago quarter due to an increase in net investment income, driven by an increase in miscellaneous investment income and an increase in the level of invested assets. Our estimate for loss was $48.2 million, while the Zacks Consensus Estimate was pegged at a loss of $45.3 million.
Capital Management
As of June 30, 2025, the weighted average risk-based capital ratio for the company’s traditional U.S. insurance companies was approximately 485%. Unum Group exited the second quarter of 2025 with liquidity worth $1.9 billion.
Book value per share grew 18.2% year over year to $65.7 as of June 30, 2025.
UNM bought back 3.8 million shares for $303.3 million.
2025 Guidance
For 2025, UNM expects a revised after-tax adjusted operating income per share of approximately $8.50 compared with $8.44 in 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -5.34% due to these changes.
VGM Scores
Currently, Unum has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Unum has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Unum belongs to the Zacks Insurance - Accident and Health industry. Another stock from the same industry, Amerisafe (AMSF - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Amerisafe reported revenues of $76.14 million in the last reported quarter, representing a year-over-year change of +0.2%. EPS of $0.53 for the same period compares with $0.58 a year ago.
Amerisafe is expected to post earnings of $0.54 per share for the current quarter, representing a year-over-year change of -6.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Amerisafe has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.