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UNM Q3 Earnings Beat Estimates on Premium Growth and Investment Income
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Key Takeaways
UNM's Q3 earnings of $2.20 per share beat estimates by 0.9% despite declining 21.7% year over year.
UNM's U.S. operating income fell 35.2%, while international income fell 99.5% amid higher disability claims.
Colonial Life's operating income rose 35%, while UNM projects 2026 earnings of $8.30-$8.50 per share.
Unum Group’s (UNM - Free Report) third-quarter 2026 adjusted operating earnings of $2.20 per share surpassed the Zacks Consensus Estimate by 0.9%. The bottom line declined 21.7% year over year.
The quarterly results benefited from premium growth across core businesses, higher net investment income and strong performance at Colonial Life. However, elevated disability claims, weaker results in Unum International and lower profitability in Unum U.S. partly offset these gains.
UNM's Operational Update
Unum Group’s total adjusted operating revenues were $3.4 billion, up 4.6% year over year. The top line outpaced the Zacks Consensus Estimate by 15%.
Premium income increased 4.2% from the prior-year quarter to $2.8 billion, supported by growth across core businesses. The figure was higher than our estimate of $2.5 billion. The Zacks Consensus Estimate was pegged at $2.6 billion.
Net investment income rose 9.6% year over year to $522.4 million, reflecting higher investment income across business segments.
Total benefits and expenses decreased 6.8% year over year to $3.1 billion, primarily reflecting lower policy benefits, partly offset by higher commissions and acquisition cost amortization. The figure was higher than our estimate of $2.5 billion.
Unum's US Business Performance
Unum U.S. premium income increased 5.2% year over year to $1.85 billion, benefiting from higher sales in prior periods and improved persistency. Adjusted operating income declined 35.2% to $315.3 million, primarily due to elevated disability claims and less favorable reserve assumption updates. Our estimate was $336 million.
The group disability business reported a 60.4% fall in adjusted operating income to $94.8 million. Adjusted operating income in group life and accidental death and dismemberment declined 14.3%, while supplemental and voluntary business income decreased 9%.
UNM's International Business Results
Unum International’s premium income increased 3.7% year over year to $291.6 million. Adjusted operating income plunged 99.5% to $0.2 million from $44.2 million in the year-ago quarter, reflecting unfavorable reserve updates and higher disability claims. Our estimate was $39 million.
The Unum U.K. business reported premium income of £176.9 million, up 3.5% year over year. However, it incurred an adjusted operating loss of £1.4 million compared to income of £27 million a year earlier.
The U.K. benefit ratio deteriorated to 91% from 73.4%, while sales declined 45.9% to £15.9 million. Total international sales decreased 41.6% to $29 million.
Unum's Colonial Life Performance
Colonial Life premium income increased 3% year over year to $470 million, benefiting from prior-period sales. Adjusted operating income rose 35% to $169.4 million, primarily driven by favorable reserve assumption updates and improved claims experience in cancer, critical illness and life products. Our estimate was $120 million.
The benefit ratio improved to 38% from 46.3% in the prior-year quarter. Sales increased 6.4% to $132.6 million, while persistency stood at 78.3% for the first nine months of 2026 compared with 78.7% a year earlier.
UNM's Closed Block and Corporate Results
Closed Block premium income declined 1.3% year over year to $192.5 million. The segment reported an adjusted operating loss of $135.6 million, narrower than the year-ago loss of $682.3 million, primarily due to less unfavorable reserve assumption updates. Our estimate for loss was $176 million.
The Corporate segment incurred an adjusted operating loss of $45.7 million, narrower than the year-ago loss of $47.7 million, primarily benefiting from higher net investment income. Our estimate for the loss was $46.3 million.
Unum's Capital Management and 2026 Guidance
As of Sept. 30, 2026, UNM's weighted average risk-based capital ratio for traditional U.S. insurance companies was approximately 485%.
Unum Group exited the third quarter with holding company liquidity totaling $1.4 billion.
UNM repurchased approximately $202 million of common shares and paid $80.1 million in common stock dividends during the quarter.
Management now expects full-year 2026 after-tax adjusted operating earnings per share between $8.30 and $8.50.
Chubb Limited (CB - Free Report) reported third-quarter 2026 core operating earnings of $7.66 per share, which beat the Zacks Consensus Estimate of $6.53 by 17.3%. The bottom line increased 0.8% year over year. Revenues of $16.81 billion surpassed the consensus mark of $16.72 billion by 0.55%.
Consolidated net premiums earned rose 3.9% year over year to $14.92 billion. P&C underwriting income declined 8.8% year over year to $2.06 billion. The combined ratio deteriorated 230 bps year over year to 84.1. The Zacks Consensus Estimate was pegged at 87.
W.R. Berkley Corporation (WRB - Free Report) reported third-quarter 2026 operating income of $1.17 per share, which beat the Zacks Consensus Estimate by 2.63%. The bottom line increased 6.4% year over year. Operating revenues of $3.76 billion rose 1.8% year over year but missed the consensus estimate by 1.19%. Net premiums earned jumped 1.8% year over year. W.R. Berkley’s net premiums written increased 1.3% year over year to $3.27 billion.
Net investment income grew 9.2% year over year to $383.5 million, supported by higher income from the core investment portfolio. Income from fixed-maturity securities increased 10.3%, while the core portfolio contributed $369.1 million, up 12% year over year. The Zacks Consensus Estimate was pegged at $398.2 million. Our estimate was pegged at $384.3 million.
The Travelers Companies, Inc. (TRV - Free Report) reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year. Net written premiums totaled $11.48 billion during the quarter. Travelers generated core income of $1.95 billion, up 4.3% year over year, while net income increased 1.5% to $1.92 billion.
Net favorable prior-year reserve development rose to $234 million pre-tax from $22 million in the year-ago quarter. Catastrophe losses widened to $538 million pre-tax from $402 million. The combined ratio improved 50 bps year over year to 86.8.
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UNM Q3 Earnings Beat Estimates on Premium Growth and Investment Income
Key Takeaways
Unum Group’s (UNM - Free Report) third-quarter 2026 adjusted operating earnings of $2.20 per share surpassed the Zacks Consensus Estimate by 0.9%. The bottom line declined 21.7% year over year.
The quarterly results benefited from premium growth across core businesses, higher net investment income and strong performance at Colonial Life. However, elevated disability claims, weaker results in Unum International and lower profitability in Unum U.S. partly offset these gains.
UNM's Operational Update
Unum Group’s total adjusted operating revenues were $3.4 billion, up 4.6% year over year. The top line outpaced the Zacks Consensus Estimate by 15%.
Unum Group Price, Consensus and EPS Surprise
Unum Group price-consensus-eps-surprise-chart | Unum Group Quote
Premium income increased 4.2% from the prior-year quarter to $2.8 billion, supported by growth across core businesses. The figure was higher than our estimate of $2.5 billion. The Zacks Consensus Estimate was pegged at $2.6 billion.
Net investment income rose 9.6% year over year to $522.4 million, reflecting higher investment income across business segments.
Total benefits and expenses decreased 6.8% year over year to $3.1 billion, primarily reflecting lower policy benefits, partly offset by higher commissions and acquisition cost amortization. The figure was higher than our estimate of $2.5 billion.
Unum's US Business Performance
Unum U.S. premium income increased 5.2% year over year to $1.85 billion, benefiting from higher sales in prior periods and improved persistency. Adjusted operating income declined 35.2% to $315.3 million, primarily due to elevated disability claims and less favorable reserve assumption updates. Our estimate was $336 million.
The group disability business reported a 60.4% fall in adjusted operating income to $94.8 million. Adjusted operating income in group life and accidental death and dismemberment declined 14.3%, while supplemental and voluntary business income decreased 9%.
UNM's International Business Results
Unum International’s premium income increased 3.7% year over year to $291.6 million. Adjusted operating income plunged 99.5% to $0.2 million from $44.2 million in the year-ago quarter, reflecting unfavorable reserve updates and higher disability claims. Our estimate was $39 million.
The Unum U.K. business reported premium income of £176.9 million, up 3.5% year over year. However, it incurred an adjusted operating loss of £1.4 million compared to income of £27 million a year earlier.
The U.K. benefit ratio deteriorated to 91% from 73.4%, while sales declined 45.9% to £15.9 million. Total international sales decreased 41.6% to $29 million.
Unum's Colonial Life Performance
Colonial Life premium income increased 3% year over year to $470 million, benefiting from prior-period sales. Adjusted operating income rose 35% to $169.4 million, primarily driven by favorable reserve assumption updates and improved claims experience in cancer, critical illness and life products. Our estimate was $120 million.
The benefit ratio improved to 38% from 46.3% in the prior-year quarter. Sales increased 6.4% to $132.6 million, while persistency stood at 78.3% for the first nine months of 2026 compared with 78.7% a year earlier.
UNM's Closed Block and Corporate Results
Closed Block premium income declined 1.3% year over year to $192.5 million. The segment reported an adjusted operating loss of $135.6 million, narrower than the year-ago loss of $682.3 million, primarily due to less unfavorable reserve assumption updates. Our estimate for loss was $176 million.
The Corporate segment incurred an adjusted operating loss of $45.7 million, narrower than the year-ago loss of $47.7 million, primarily benefiting from higher net investment income. Our estimate for the loss was $46.3 million.
Unum's Capital Management and 2026 Guidance
As of Sept. 30, 2026, UNM's weighted average risk-based capital ratio for traditional U.S. insurance companies was approximately 485%.
Unum Group exited the third quarter with holding company liquidity totaling $1.4 billion.
UNM repurchased approximately $202 million of common shares and paid $80.1 million in common stock dividends during the quarter.
Management now expects full-year 2026 after-tax adjusted operating earnings per share between $8.30 and $8.50.
UNM’s 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 third-quarter 2026 core operating earnings of $7.66 per share, which beat the Zacks Consensus Estimate of $6.53 by 17.3%. The bottom line increased 0.8% year over year. Revenues of $16.81 billion surpassed the consensus mark of $16.72 billion by 0.55%.
Consolidated net premiums earned rose 3.9% year over year to $14.92 billion. P&C underwriting income declined 8.8% year over year to $2.06 billion. The combined ratio deteriorated 230 bps year over year to 84.1. The Zacks Consensus Estimate was pegged at 87.
W.R. Berkley Corporation (WRB - Free Report) reported third-quarter 2026 operating income of $1.17 per share, which beat the Zacks Consensus Estimate by 2.63%. The bottom line increased 6.4% year over year. Operating revenues of $3.76 billion rose 1.8% year over year but missed the consensus estimate by 1.19%. Net premiums earned jumped 1.8% year over year. W.R. Berkley’s net premiums written increased 1.3% year over year to $3.27 billion.
Net investment income grew 9.2% year over year to $383.5 million, supported by higher income from the core investment portfolio. Income from fixed-maturity securities increased 10.3%, while the core portfolio contributed $369.1 million, up 12% year over year. The Zacks Consensus Estimate was pegged at $398.2 million. Our estimate was pegged at $384.3 million.
The Travelers Companies, Inc. (TRV - Free Report) reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year. Net written premiums totaled $11.48 billion during the quarter. Travelers generated core income of $1.95 billion, up 4.3% year over year, while net income increased 1.5% to $1.92 billion.
Net favorable prior-year reserve development rose to $234 million pre-tax from $22 million in the year-ago quarter. Catastrophe losses widened to $538 million pre-tax from $402 million. The combined ratio improved 50 bps year over year to 86.8.