Unum Group shares fall as Q1 earnings miss estimates

Published 29/04/2025, 22:12
Unum Group shares fall as Q1 earnings miss estimates

Investing.com -- Unum Group (NYSE:UNM) reported first-quarter 2025 earnings that fell short of analyst expectations, sending shares down 8.8% in after-hours trading.

The insurance provider posted adjusted earnings per share of $2.04, missing the consensus estimate of $2.18. Revenue came in at $3.09 billion, below analysts’ projections of $3.34 billion.

Despite the earnings miss, Unum saw solid premium growth of 4.2% on a constant currency basis in its core operations. The company’s net income declined to $189.1 million, or $1.06 per diluted share, compared to $395.2 million, or $2.04 per share, in the same quarter last year.

"With solid earned premium growth, enhanced capital strength, and our previously announced long-term care reinsurance transaction, we continued to execute against our strategy during the first quarter of 2025," said Richard P. McKenney, president and CEO of Unum Group.

The Unum US segment, the company’s largest, reported a 14.6% decrease in adjusted operating income to $329.1 million. This decline was primarily driven by higher benefit ratios in the group disability and voluntary benefits product lines.

Unum International saw a 3.5% increase in adjusted operating income to $38.7 million, while Colonial Life’s adjusted operating income rose 1.8% to $115.7 million.

The company maintained its full-year 2025 outlook, projecting a 6% to 10% increase in after-tax adjusted operating income per share compared to 2024.

Unum ended the quarter with a strong balance sheet, reporting holding company liquidity of $2.2 billion and a weighted average risk-based capital ratio of approximately 460%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.