Core Viewpoint - Unum Group's fourth-quarter 2024 operating net income of $2.03 per share fell short of the Zacks Consensus Estimate by 4.7%, although it represented a 13.4% year-over-year increase [1] Operational Update - Total operating revenues reached $3.2 billion, reflecting a 2.5% year-over-year increase, driven by higher premium income, other income, and improved net investment income, but missed the consensus estimate by 1.5% [3] - Premium income increased by 3.1% year over year to $2.6 billion, aligning with the Zacks Consensus Estimate [3] - Net investment income was $543.6 million, up 2.4%, surpassing the Zacks Consensus Estimate of $540 million [3] - Total benefits and expenses rose by 2.7% year over year to $2.8 billion, primarily due to lower policy benefits [4] Quarterly Segment Update - Unum U.S. reported premium income of $1.7 billion, a 3% year-over-year increase, but adjusted operating income decreased by 2.6% to $333.2 million, missing the Zacks Consensus Estimate of $346 million [5] - Unum International's premium income was $246.6 million, up 17.1% year over year, with adjusted operating income of $37.6 million, a 4.6% increase, but below the Zacks Consensus Estimate of $42 million [5] - Unum U.K. premium income was £156.9 million, a 5.2% increase from the previous year, with adjusted operating income of £27.6 million, up 10.7% year over year [6] Benefit Ratio and Sales - The benefit ratio, excluding reserve assumption updates, was 72.1%, deteriorating by 420 basis points due to unfavorable claims in group long-term disability and group life products, partially offset by favorable claims in supplemental products [7] - Sales increased by 5% [7] Full-Year Highlights - Adjusted operating income for the full year was $8.44 per share, a 10.1% increase from 2023, with total premium income rising by 4.5% to $10.5 billion [12] Capital Management - As of December 31, 2024, the weighted average risk-based capital ratio for Unum Group's traditional U.S. insurance companies was approximately 430%, with holding company liquidity of $2 billion [13] - Book value per share grew by 23% year over year to $61.38, and the company executed accelerated share repurchase agreements totaling $471 million in the fourth quarter [13] Guidance - Unum Group expects after-tax adjusted operating income per share to grow by 8-12% in 2025, with core operations premium growth anticipated between 4% and 7% [14]
Unum Group Q4 Earnings and Revenues Miss Estimates, Premium Rises Y/Y