Unum Group (UNM) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $645.7 million ($3.46 per diluted share), up from $202.0 million ($1.02 per share) in Q3 2023, driven by reserve assumption updates and strong core operations.

• After-tax adjusted operating income for Q3 2024 was $398.0 million ($2.13 per share), up from $381.7 million ($1.94 per share) in Q3 2023.

• Book value per share grew 20.4% year-over-year to $59.36; excluding AOCI, book value per share rose 13.3% to $74.15.

• EPS growth expectations for 2024 raised to 10%-15%, above original outlook, driven by broad-based performance and robust cash flow.

• Persistency remains high, though Q3 sales were down year-over-year; Q4 expected to be the largest sales quarter.

Financial highlights

• Total revenue for Q3 2024 was $3.22 billion, up 4.0% year-over-year; premium income grew 4.1% in Q3 and 5.0% for the nine months.

• Consolidated ROE at 12.5%; core operations ROE and before-tax operating earnings above outlook ranges.

• Unum US adjusted operating income rose 1.5% to $363.3 million; Group Life and AD&D adjusted operating earnings up 80% year-over-year.

• Unum International adjusted operating income increased 9.5% to $40.3 million; premium income up 17.1%.

• Colonial Life adjusted operating income grew 10.2% to $113.4 million; premium income up 2.5%.

Outlook and guidance

• Full-year 2024 outlook projects after-tax adjusted operating income per share to increase 10% to 15% over 2023.

• Premium and sales growth supported by strong persistency and operational investments; Q4 expected to be the largest sales quarter.

• Colonial Life sales expected to be flat year-over-year; international segment to sustain strong growth.

• Share repurchases projected to reach $1 billion in 2024, up from $250 million in 2023 and above the $500 million initial outlook.