Unum Group (UNM) Q4 2025 earnings summary

Executive summary

• 2025 saw disciplined operational performance, digital investment, and risk profile improvement in the Closed Block.

• Adjusted EPS for 2025 was $8.13, down year-over-year and below expectations, mainly due to higher-than-expected benefits experience.

• Core operations delivered a 20%–20.5% ROE, with premium growth of 3.7%–4.5% overall, 3.1% at Colonial Life, and 10% in International.

• Two small acquisitions were completed, dividend increased by 10%, and $1 billion in share buybacks executed.

• Book value per share rose 9.3% to $67.11; excluding AOCI, book value per share increased 3.3% to $78.02.

Financial highlights

• After-tax adjusted operating earnings were $322.3 million for Q4 ($1.92/share) and $1.41 billion for the year ($8.13/share).

• Full-year after-tax statutory earnings were $1.1 billion, below the $1.3–$1.6 billion expectation.

• Q4 2025 total revenue was $3.24 billion; full-year revenue reached $13.08 billion.

• Core operations premium grew 3.7% for the year, 2.9% in Q4; adjusted for runoff and reinsurance, growth was 4.5%.

• Risk-based capital ended at 440%, with $2.3 billion in holding company cash.

Outlook and guidance

• 2026 guidance: premium growth of 4%–7%, EPS growth of 8%–12% (to $8.60–$8.90), and continued $1 billion in share repurchases.

• Group Disability Benefit Ratio expected at 62%–64% in 2026, with ROE >25%.

• Colonial Life premium growth expected at 2%–4%, with high teens ROE.

• International segment to deliver high teens ROE, with Benefit Ratio returning to 70%–72%.

• Capital generation expected at $1.4–$1.6 billion, with 100% of free cash flow returned to shareholders.