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Unum Group revenue rose 8.5% to $3.4B, driven by premium growth and strong sales.
UNM expenses climbed 7.2% on higher benefits, while international profit fell 20.2%.
Unum Group’s (UNM - Free Report) first-quarter 2026 operating net income of $2.14 per share missed the Zacks Consensus Estimate by 3.4%. The bottom line decreased 9.7% year over year.
The quarterly results were adversely impacted by higher benefit costs and weaker international profitability. However, premium growth and strong sales momentum partly offset the decline.
Total operating revenues of Unum Group were $3.4 billion, up 8.5% year over year. The top line surpassed the Zacks Consensus Estimate by 14.4%.
Premium increased 3.4% from the prior-year quarter to $2.8 billion, which is higher than our estimate of $2.5 billion. The Zacks Consensus Estimate was pegged at $2.7 billion.
Total benefits and expenses increased 7.2% year over year to $3.1 billion, largely attributable to higher policy benefits, commissions and other expenses. The figure was higher than our estimate of $2.5 billion.
Quarterly Segment Update
Unum U.S.: Premium income was $1.8 billion, up 3.3% year over year.
Adjusted operating income increased 2.7% year over year to $338 million. It excludes the amortization of the deferred gain on reinsurance of $4.4 million and the impact of non-contemporaneous reinsurance of $0.6 million. The Zacks Consensus Estimate was pegged at $328 million, while our estimate was $341 million.
The group disability line of business reported a 10.6% decrease in adjusted operating income while the group life and accidental death and dismemberment line of business reported a 66.3% increase. The supplemental and voluntary line of business reported a decrease of 17.4%.
Unum International: Premium income of $286.7 million increased 16.2% year over year.
Adjusted operating income was $30.9 million, down 20.2% year over year. The Zacks Consensus Estimate was pegged at $41 million, while our estimate was $47.5 million.
The Unum U.K. line of business premium income totaled £172.1 million, up 6.6% from the year-ago quarter, primarily due to in-force block growth, sales, and favorable persistency. Adjusted operating income, in local currency, was £20.4million was down 30.8% year over year.
The benefit ratio, excluding the reserve assumption updates, was 72.9%, which deteriorated 580 basis points (bps), primarily due to higher average claim size and increased claim incidence in the group long-term disability business.
Sales increased 15% to £24.5 million.
Persistency increased in the supplemental product line, but decreased in the group long-term disability and the group life product line.
Colonial Life: Premium income increased 3.4% from the prior-year figure to $472.2 million, driven by stable overall persistency and prior period sales.
Sales increased 0.9% from the year-ago figure to $106.3 million.
Adjusted operating income increased 10.5% from the prior-year period to $127.8 million. Our estimate was $115.9 million, while the Zacks Consensus Estimate was pegged at $120.8 million.
Persistency was 78.1% for the first three months of 2026, remained same year over year. The benefit ratio, excluding the reserve assumption updates, improved 170 bps year over year to 46.7%.
Closed Block: Premium income decreased 11.1% to $194.4 million. Adjusted operating loss was $145.3 million compared to income of $8 million a year ago, primarily due to group policy terminations, higher claim incidence in long-term care, and lower net investment income. The Zacks Consensus Estimate was pegged at $13.8 million.
Corporate: The segment incurred an adjusted operating loss of $43.6 million, wider than the year-ago quarter’s loss of $41.1 million, primarily due to decreased net investment income. Our estimate for loss was $49 million, while the Zacks Consensus Estimate was pegged at a loss of $45.2 million.
Capital Management
As of March. 31, 2026, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 460%.
Unum Group exited the first quarter with holding company liquidity worth $1.7 billion.
Book value per share grew 6.2% year over year to $67.76 as of March 31, 2026.
UNM bought back shares worth $402.4 million
2026 Guidance
UNM expects that after-tax adjusted operating income per share will increase to 22.2% from 21.2% in the year-ago period.
Management expects 2026 EPS of $8.60-$8.90, implying 8-12% growth.
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.
Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%. Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate was $2 billion.
Arch Capital Group Ltd. (ACGL - Free Report) reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
Operating revenues of $4.3 billion decreased 3.8% year over year, due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% year over year to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.
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Unum Group Q1 Earnings Miss Estimates, Revenues Rise Y/Y
Key Takeaways
Unum Group’s (UNM - Free Report) first-quarter 2026 operating net income of $2.14 per share missed the Zacks Consensus Estimate by 3.4%. The bottom line decreased 9.7% year over year.
The quarterly results were adversely impacted by higher benefit costs and weaker international profitability. However, premium growth and strong sales momentum partly offset the decline.
Unum Group Price, Consensus and EPS Surprise
Unum Group price-consensus-eps-surprise-chart | Unum Group Quote
Operational Update
Total operating revenues of Unum Group were $3.4 billion, up 8.5% year over year. The top line surpassed the Zacks Consensus Estimate by 14.4%.
Premium increased 3.4% from the prior-year quarter to $2.8 billion, which is higher than our estimate of $2.5 billion. The Zacks Consensus Estimate was pegged at $2.7 billion.
Total benefits and expenses increased 7.2% year over year to $3.1 billion, largely attributable to higher policy benefits, commissions and other expenses. The figure was higher than our estimate of $2.5 billion.
Quarterly Segment Update
Unum U.S.: Premium income was $1.8 billion, up 3.3% year over year.
Adjusted operating income increased 2.7% year over year to $338 million. It excludes the amortization of the deferred gain on reinsurance of $4.4 million and the impact of non-contemporaneous reinsurance of $0.6 million. The Zacks Consensus Estimate was pegged at $328 million, while our estimate was $341 million.
The group disability line of business reported a 10.6% decrease in adjusted operating income while the group life and accidental death and dismemberment line of business reported a 66.3% increase. The supplemental and voluntary line of business reported a decrease of 17.4%.
Unum International: Premium income of $286.7 million increased 16.2% year over year.
Adjusted operating income was $30.9 million, down 20.2% year over year. The Zacks Consensus Estimate was pegged at $41 million, while our estimate was $47.5 million.
The Unum U.K. line of business premium income totaled £172.1 million, up 6.6% from the year-ago quarter, primarily due to in-force block growth, sales, and favorable persistency. Adjusted operating income, in local currency, was £20.4million was down 30.8% year over year.
The benefit ratio, excluding the reserve assumption updates, was 72.9%, which deteriorated 580 basis points (bps), primarily due to higher average claim size and increased claim incidence in the group long-term disability business.
Sales increased 15% to £24.5 million.
Persistency increased in the supplemental product line, but decreased in the group long-term disability and the group life product line.
Colonial Life: Premium income increased 3.4% from the prior-year figure to $472.2 million, driven by stable overall persistency and prior period sales.
Sales increased 0.9% from the year-ago figure to $106.3 million.
Adjusted operating income increased 10.5% from the prior-year period to $127.8 million. Our estimate was $115.9 million, while the Zacks Consensus Estimate was pegged at $120.8 million.
Persistency was 78.1% for the first three months of 2026, remained same year over year. The benefit ratio, excluding the reserve assumption updates, improved 170 bps year over year to 46.7%.
Closed Block: Premium income decreased 11.1% to $194.4 million. Adjusted operating loss was $145.3 million compared to income of $8 million a year ago, primarily due to group policy terminations, higher claim incidence in long-term care, and lower net investment income. The Zacks Consensus Estimate was pegged at $13.8 million.
Corporate: The segment incurred an adjusted operating loss of $43.6 million, wider than the year-ago quarter’s loss of $41.1 million, primarily due to decreased net investment income. Our estimate for loss was $49 million, while the Zacks Consensus Estimate was pegged at a loss of $45.2 million.
Capital Management
As of March. 31, 2026, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 460%.
Unum Group exited the first quarter with holding company liquidity worth $1.7 billion.
Book value per share grew 6.2% year over year to $67.76 as of March 31, 2026.
UNM bought back shares worth $402.4 million
2026 Guidance
UNM expects that after-tax adjusted operating income per share will increase to 22.2% from 21.2% in the year-ago period.
Management expects 2026 EPS of $8.60-$8.90, implying 8-12% growth.
Zacks Rank
UNM currently has 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
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.
Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%. Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate was $2 billion.
Arch Capital Group Ltd. (ACGL - Free Report) reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
Operating revenues of $4.3 billion decreased 3.8% year over year, due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% year over year to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.