Core Insights - Unum Group (UNM) shares are trading at a discount compared to the Zacks Accident and Health Insurance industry, with a forward price-to-book value of 1.23X, lower than the industry average of 1.82X, the Finance sector's 4.16X, and the Zacks S&P 500 Composite's 8.1X [1] - The company has a market capitalization of $13.93 billion and an average trading volume of 1.4 million shares over the last three months [1] Performance Comparison - Unum Group shares have surged 63.5% in the past year, outperforming the industry growth of 27.1%, the Finance sector's 20.4%, and the Zacks S&P 500 composite's 10.8% [3] Technical Analysis - Shares closed at $79.25, near a 52-week high of $84.48, indicating strong investor confidence and potential for further price appreciation [5] - The stock is trading above the 50-day and 200-day simple moving averages of $78.88 and $72.31, respectively, suggesting solid upward momentum [5] Growth Projections - For 2025, Unum U.S. expects sales growth of 5-10% and an adjusted operating return on equity (ROE) of 23-25% [8] - The Zacks Consensus Estimate for Unum Group's 2025 revenues is $13.24 billion, reflecting a year-over-year improvement of 2.7% [10] - Long-term earnings growth is expected at 7.2%, outperforming the industry average of 6% [11] Analyst Sentiment - The average price target for UNM is $92.43 per share, suggesting a potential upside of 17.5% from the last closing price [12] - Recent analyst sentiment has shown some bearish trends, with three of eight analysts lowering estimates for 2025 and two for 2026 [16] Revenue and Premium Growth - Premiums are expected to grow due to healthy in-force block growth and higher sales, with projected sales growth of 5-10% and premium growth of 4-7% in 2025 [17][19] - Unum Group's operational excellence in its two largest segments, Unum U.S. and Colonial Life, is expected to drive growth [18] Dividend History - Unum Group has consistently increased shareholder value through dividend hikes, with a 15% increase effective in Q3 2024, marking the 15th hike in the last 14 years [20] - The dividend yield stands at 2.12%, making it attractive for yield-seeking investors [20] Conclusion - Favorable sales trends, strong persistency, and a solid capital position are expected to benefit Unum Group in the long term, making it a wise investment choice [21]

Core Viewpoint - Unum Group has approved a 10% increase in its dividend, making it an attractive option for yield-seeking investors due to its higher dividend yield compared to the industry average [1][2]. Group 1: Dividend and Capital Deployment - The recent dividend hike marks the 16th increase in the last 15 years, with a 10-year CAGR of 10.8% [2]. - The company estimates a dividend payout of $300-$330 million in 2025 [2]. - Unum Group has a strong capital and liquidity position, supported by cash flow generation, which instills confidence in its capital deployment strategy [2][4]. Group 2: Share Buybacks - Unum Group has been actively buying back shares, with a $200 million repurchase in Q1 2025 and plans for at least the same amount in Q2 [3]. - A $1 billion buyback program was approved, starting on April 1, 2025, with expectations to buy back $0.5-$1 billion in shares throughout 2025 [3]. Group 3: Operational Performance - Unum Group is the leading disability income writer and the second-largest writer of voluntary business in the U.S., demonstrating strong operating performance across key insurance segments [5]. - The two primary divisions, Unum U.S. and Colonial Life, have shown ongoing growth in operating income, driven by disciplined sales efforts and increasing premium income [6]. Group 4: Growth Projections - The company forecasts high-single-digit sales growth and 4% to 7% premium growth over the long term, with earnings growth expected between 6% and 10% for 2025 [7]. - Unum Group maintains a robust capital position, with a return on equity of 14.2%, although it lags behind the industry average of 15.5% [7]. Group 5: Stock Performance and Valuation - Shares of Unum Group have gained 6.5%, outperforming the industry growth of 2% and the sector's return of 3.9% [8]. - The current price-to-book multiple is 1.24, above its five-year median of 0.87, indicating that the shares are relatively expensive [9]. - Compared to other insurers like Prudential Financial Inc and Lincoln National Corporation, Unum Group shares are also considered expensive [10]. Group 6: Analyst Sentiment - The Zacks average price target for Unum Group is $92.36 per share, suggesting a potential 16% upside from the last closing price [12]. - However, the consensus estimates for 2025 and 2026 earnings have seen slight declines of 0.7% and 0.6%, reflecting analysts' muted sentiment [12].

Core Insights - Unum Group (NYSE: UNM) has shown strong performance, trading near 52-week highs and outperforming most large-cap financials since the previous analysis in November 2024 [1] Financial Performance - The company has made significant strides in de-risking efforts and has delivered impressive shareholder returns [1] Market Position - Unum Group's stock has been positively received in the market, indicating strong investor confidence and interest [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-11294 Unum Group (Exact name of registrant as specified in its charter) Delaware 62-1598430 (State or other jurisdiction of incorp ...

Unum Group’s (UNM) first-quarter 2025 operating net income of $2.04 per share missed the Zacks Consensus Estimate by 6.8%. The bottom line decreased 3.8% year over year.The quarterly results reflected higher premiums and solid performances across Unum International, Colonial Life and Closed Block segments, partially offset by weakness in the Unum U.S and Corporate segments. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Unum Group’s Operational Update         Total operating revenu ...

Financial Data and Key Metrics Changes - The company achieved a return on equity (ROE) of over 20% and premium growth exceeding 4% in the first quarter [5][16] - Earnings per share (EPS) was reported at $2.4, reflecting a 3.8% decrease from the previous year due to higher disability claims [5][15] - Statutory earnings were strong at nearly $500 million, bolstered by one-time benefits from restructuring [12][16] Business Line Data and Key Metrics Changes - Unum US saw adjusted operating income decrease by 14.6% to $329.1 million, with premium growth of 4.3% [17][19] - Group disability adjusted operating income fell to $119.2 million, driven by higher incidence rates, with a benefit ratio of 61.8% [18][19] - Colonial Life's operating income increased to $115.7 million, with premium income growing at 2.3% [22][23] Market Data and Key Metrics Changes - The international segment's adjusted operating income rose to $38.7 million, with premium income increasing by 7% year-over-year [20][21] - Unum Poland experienced 18% growth, while the UK business saw a 15% increase in its sub-500 lives core business [21][90] Company Strategy and Development Direction - The company aims to maintain industry-leading margins and grow its top line at mid-single-digit levels, with a full-year growth outlook of 6% to 10% [4][5] - Continued investment in digital capabilities is seen as crucial for enhancing customer interactions and improving persistency [6][9] - The company is actively managing its long-term care block and has executed transactions to reduce risk and release capital [12][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment remains favorable, with healthy employment levels and rising wages contributing to business stability [5][6] - The company expects to see a normalization in disability claims and a return to historical levels of incidence rates as the year progresses [35][66] - There is confidence in achieving annual expectations for statutory earnings and maintaining robust capital flexibility [16][30] Other Important Information - The company ended the quarter with record holding company liquidity of $2.2 billion and a risk-based capital (RBC) ratio of 460% [12][30] - Share repurchases in the first quarter amounted to approximately $200 million, with plans to continue this in the second quarter [13][31] Q&A Session Summary Question: Can you provide more details on disability incidents? - Management observed elevated incidents in both short-term and long-term disability early in the quarter, with a normalization expected as the year progresses [34][35] Question: How do you view the economic sensitivity of disability claims? - Management indicated that while submitted claims may rise during economic downturns, this does not necessarily translate to higher paid incidents [37][39] Question: What are the drivers for the reaffirmed growth guidance? - Management highlighted expectations for improved group disability loss ratios, anticipated yield increases, and organic growth as key drivers for the reaffirmed guidance [42][48] Question: Can you elaborate on the impact of technology on persistency? - Management noted that technology investments are expected to enhance persistency, with a significant portion of new business tied to these capabilities [50][51] Question: What are the dynamics around capital deployment and share buybacks? - Management emphasized a dynamic approach to capital deployment, with plans to increase share repurchases while maintaining flexibility for growth investments [70][76]

Financial Data and Key Metrics Changes - The company achieved a return on equity (ROE) of over 20% and premium growth exceeding 4% in the first quarter [7][17] - Earnings per share (EPS) was reported at $2.4, reflecting a 3.8% decrease from the previous year due to higher disability claims [18][19] - Statutory earnings reached nearly $500 million, bolstered by one-time benefits from restructuring [16][19] Business Line Data and Key Metrics Changes - Unum U.S. adjusted operating income decreased by 14.6% to $329.1 million, with premium growth of 4.3% [20][21] - Group disability adjusted operating income fell to $119.2 million, with a benefit ratio of 61.8%, up from 57.5% a year ago [21][22] - Colonial Life segment saw adjusted operating income increase to $115.7 million, with premium income growing at 2.3% [25] Market Data and Key Metrics Changes - Unum International's adjusted operating income increased to $38.7 million, with premium income rising by 7% year-over-year [24] - The UK business reported earnings in the higher £20 million range, while Unum Poland experienced 18% growth [24][89] - The overall persistency rate for Unum U.S. was reported at 89.3%, indicating stable customer retention [20] Company Strategy and Development Direction - The company aims for full-year growth of 6% to 10%, supported by a healthy sales pipeline and digital capabilities [6][11] - Focus on enhancing digital interactions and leave administration services to improve customer engagement and retention [8][11] - Continued active management of the long-term care block, including premium rate increases and reinsurance strategies [14][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment remains favorable, with healthy employment levels and rising wages [8][12] - The company expects to see a normalization in disability claims and a return to historical levels of incidence rates [38][67] - Confidence in achieving annual statutory earnings expectations of $1.3 billion to $1.6 billion from traditional insurance subsidiaries [19] Other Important Information - The company ended the quarter with record holding company liquidity of $2.2 billion and a risk-based capital (RBC) ratio of 460% [15][32] - Share repurchases in the first quarter amounted to approximately $200 million, with plans to increase this in the second quarter [16][33] - The company is committed to consistent dividend increases, with announcements expected during the annual shareholder meeting [16] Q&A Session Summary Question: Can you provide more details on disability incidents? - Management observed elevated incidents in both short-term and long-term disability early in the quarter, with a normalization expected as the year progresses [36][38] Question: How do you view the economic sensitivity of disability claims? - Management indicated that while submitted claims may rise during economic downturns, this does not necessarily translate to higher paid claims [40][42] Question: What are the drivers for the reaffirmed growth outlook? - Management highlighted expectations for improved group disability loss ratios, anticipated yield increases, and organic growth as key drivers for the growth outlook [45][51] Question: Can you elaborate on the impact of technology on persistency? - Management noted that technology investments are expected to enhance persistency, with a significant portion of new business tied to these capabilities [53][61] Question: What are the expectations for sales growth throughout the year? - Management anticipates stronger sales momentum in the latter part of the year, particularly in the group segment, driven by a healthy pipeline [78][80]

Group 1: Earnings Performance - Unum reported quarterly earnings of $2.04 per share, missing the Zacks Consensus Estimate of $2.19 per share, and down from $2.12 per share a year ago, representing an earnings surprise of -6.85% [1] - The company posted revenues of $3.3 billion for the quarter, missing the Zacks Consensus Estimate by 1.05%, compared to $3.2 billion in the same quarter last year [2] - Over the last four quarters, Unum has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - Unum shares have increased by approximately 8.2% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the coming quarter is $2.26 on revenues of $3.35 billion, and for the current fiscal year, it is $9 on revenues of $13.35 billion [7] Group 3: Industry Context - The Insurance - Accident and Health industry, to which Unum belongs, is currently in the top 34% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Unum's stock performance [5][6]

Unum Group Statistical Supplement First Quarter 2025 TABLE OF CONTENTS (in millions of dollars, except share data and where noted) Interim Results are Unaudited Generally Accepted Accounting Principles 1 Our traditional U.S. life insurance companies are Provident Life and Accident Insurance Company, Unum Life Insurance Company of America, First Unum Life Insurance Company, Colonial Life & Accident Insurance Company, The Paul Revere Life Insurance Company, Unum Insurance Company, Provident Life and Casualty ...

Core Viewpoint - Unum Group (UNM) is expected to report improved earnings and revenue for the first quarter of 2025, with a consensus estimate of $3.3 billion in revenues and $2.19 per share in earnings, indicating year-over-year growth [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for UNM's first-quarter revenues is $3.3 billion, reflecting a 4.1% increase from the previous year [1]. - The consensus estimate for earnings is $2.19 per share, which represents a year-over-year increase of 3.3% [2]. Earnings Prediction Model - UNM has an Earnings ESP of -0.58%, as the Most Accurate Estimate of $2.17 per share is lower than the Zacks Consensus Estimate [3]. - UNM currently holds a Zacks Rank of 4 (Sell), indicating a lower likelihood of an earnings beat this quarter [3]. Premium Income and Investment Income - The Zacks Consensus Estimate for premium income is $2.7 billion, suggesting a 5.3% increase from the year-ago quarter [4]. - Net investment income is estimated at $500.5 million, with the Zacks Consensus Estimate at $532 million, indicating potential growth in investment performance [5]. Segment Performance - Unum U.S. and Colonial Life are expected to show strong performance driven by higher premium income and improved benefit experiences across various product lines [6]. - Estimated operating revenues for Unum U.S. are $2 billion, while Colonial Life is projected at $499.6 million [7]. Expense Considerations - Total benefits and expenses are expected to reach $2.8 billion, influenced by increased policy benefits and other operational costs [8]. - Continued share buybacks are anticipated to positively impact the bottom line [8].