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Unum Group Gears Up to Report Q4 Earnings: Here's What to Expect
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Key Takeaways
UNM is expected to post higher Q4 revenues and earnings, with sales expected to rise 1.4% year over year.
Premium income is projected to grow 1.7%, supported by favorable persistency and better sales trends.
Stronger results at Unum U.S., Colonial Life and International may offset lower net investment income.
Unum Group (UNM - Free Report) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 5, after the closing bell.
The Zacks Consensus Estimate for UNM’s fourth-quarter revenues is pegged at $3.3 billion, indicating 1.4% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.11 per share. The estimate suggests a year-over-year increase of 3.9%.
What the Zacks Model Unveils for UNM
Our proven model does not conclusively predict an earnings beat for Unum Group this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. However, this is not the case here, as you can see below:
Earnings ESP: UNM has an Earnings ESP of -0.26% at present. This is because the Most Accurate Estimate of $2.10 is pegged lower than the Zacks Consensus Estimate of $2.11. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: UNM currently carries a Zacks Rank #4 (Sell).
Factors Likely to Shape Q4 Results of UNM
Favorable persistency and better sales in the operating segments are likely to have favored premiums in the fourth quarter. The Zacks Consensus Estimate for premium income is pegged at $2.7 billion. We expect premium income to be $2.7 billion, suggesting a 1.7% increase from the year-ago quarter.
Net investment income is likely to have declined due to lower income from fixed maturity investments. Our estimate for investment income is pegged at $492.7 million, suggesting a 9.4% decrease from the year-ago quarter. The Zacks Consensus Estimate is pegged at $493 million.
The performance of Unum U.S. and Colonial Life — two of the largest operating segments — is likely to have been driven by higher premium income, favorable persistency, improved benefit experience across life, accident, sickness and disability product lines, favorable recoveries in the long-term disability product line, and enhanced stop loss experience. Each business line is expected to have delivered better performance in the to-be-reported quarter.
Better performance in life and group disability is likely to aid Unum U.S. results.
Our estimate for Unum U.S. operating revenues is pegged at $2 billion, while the same for Colonial Life is $488.8 million.
Favorable results at group long-term disability, Group Life and Supplemental are likely to favor Unum UK. This, combined with better performance at Unum Poland, is likely to have benefited Unum International. Our estimate for Unum International’s operating revenues is pegged at $299 million.
Expenses are likely to have increased because of higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs, and other expenses.
Continued share buybacks are likely to have contributed to the bottom line.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $13.36, indicating a year-over-year increase of 172.6%.
EG’s earnings beat estimates in one of the last four reported quarters, while missing in the other three.
RenaissanceRe (RNR - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $10.59, indicating a year-over-year increase of 31.4%.
RNR’s earnings beat estimates in three of the last four reported quarters, while missing in one.
The Hanover Insurance (THG - Free Report) has an Earnings ESP of +11.15% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $5.08, indicating a year-over-year decrease of 4.5%.
THG’s earnings beat estimates in each of the last four reported quarters.
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Unum Group Gears Up to Report Q4 Earnings: Here's What to Expect
Key Takeaways
Unum Group (UNM - Free Report) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 5, after the closing bell.
The Zacks Consensus Estimate for UNM’s fourth-quarter revenues is pegged at $3.3 billion, indicating 1.4% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.11 per share. The estimate suggests a year-over-year increase of 3.9%.
What the Zacks Model Unveils for UNM
Our proven model does not conclusively predict an earnings beat for Unum Group this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. However, this is not the case here, as you can see below:
Earnings ESP: UNM has an Earnings ESP of -0.26% at present. This is because the Most Accurate Estimate of $2.10 is pegged lower than the Zacks Consensus Estimate of $2.11. 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: UNM currently carries a Zacks Rank #4 (Sell).
Factors Likely to Shape Q4 Results of UNM
Favorable persistency and better sales in the operating segments are likely to have favored premiums in the fourth quarter. The Zacks Consensus Estimate for premium income is pegged at $2.7 billion. We expect premium income to be $2.7 billion, suggesting a 1.7% increase from the year-ago quarter.
Net investment income is likely to have declined due to lower income from fixed maturity investments. Our estimate for investment income is pegged at $492.7 million, suggesting a 9.4% decrease from the year-ago quarter. The Zacks Consensus Estimate is pegged at $493 million.
The performance of Unum U.S. and Colonial Life — two of the largest operating segments — is likely to have been driven by higher premium income, favorable persistency, improved benefit experience across life, accident, sickness and disability product lines, favorable recoveries in the long-term disability product line, and enhanced stop loss experience. Each business line is expected to have delivered better performance in the to-be-reported quarter.
Better performance in life and group disability is likely to aid Unum U.S. results.
Our estimate for Unum U.S. operating revenues is pegged at $2 billion, while the same for Colonial Life is $488.8 million.
Favorable results at group long-term disability, Group Life and Supplemental are likely to favor Unum UK. This, combined with better performance at Unum Poland, is likely to have benefited Unum International. Our estimate for Unum International’s operating revenues is pegged at $299 million.
Expenses are likely to have increased because of higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs, and other expenses.
Continued share buybacks are likely to have contributed to the bottom line.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Everest Group, Ltd. (EG - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $13.36, indicating a year-over-year increase of 172.6%.
EG’s earnings beat estimates in one of the last four reported quarters, while missing in the other three.
RenaissanceRe (RNR - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $10.59, indicating a year-over-year increase of 31.4%.
RNR’s earnings beat estimates in three of the last four reported quarters, while missing in one.
The Hanover Insurance (THG - Free Report) has an Earnings ESP of +11.15% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $5.08, indicating a year-over-year decrease of 4.5%.
THG’s earnings beat estimates in each of the last four reported quarters.