Unum Group Earnings
Unum Group (NYSE: UNM), a prominent provider of workplace benefits, reported its third-quarter earnings for 2025. The company navigated a challenging economic landscape, resulting in a net income of $39.7 million, or $0.23 per diluted common share. After-tax adjusted operating income stood strong at $357.1 million, translating to $2.09 per diluted common share. This marks a noticeable decline from the net income of $645.7 million ($3.46 per share) reported in the same quarter a year earlier, largely due to adjustments in reserves related to long-term care reinsurance.
Unum Group Results
The table below summarizes the key financial metrics for Unum Group's third-quarter performance in 2025, compared to the same period in 2024:
| Financial Metric | Q3 2025 | Q3 2024 | Year-over-Year Change |
|---|---|---|---|
| Net Income (million $) | 39.7 | 645.7 | -93.9% |
| Net Income per Share ($) | 0.23 | 3.46 | -93.4% |
| Adjusted Operating Income (million $) | 357.1 | 398.0 | -10.3% |
| Adjusted Operating Income per Share ($) | 2.09 | 2.13 | -1.9% |
The company's net income dropped significantly year-over-year, primarily due to strategic reserve adjustments. These actions, however, ensured robust statutory operating earnings in core business lines.
Revenue Breakdown
Below is the revenue breakdown for Unum Group's major segments in the third quarter of 2025:
| Segment | Q3 2025 Revenue (million $) | Q3 2024 Revenue (million $) | Year-over-Year Change |
|---|---|---|---|
| Unum US | 1,755.4 | 1,723.5 | +1.9% |
| Unum International | 281.1 | 246.6 | +14.0% |
| Colonial Life | 456.5 | 441.9 | +3.3% |
| Closed Block | 158.6 | 173.7 | -8.7% |
In-depth Analysis
Unum US Segment
The Unum US segment faced a 7.8% decrease in adjusted operating income to $334.9 million. Within this segment, the group disability line saw a notable decline of 14.8%, reflecting a decrease in premium income and net investment income. Despite these challenges, premium income for the Unum US segment increased by 1.9%, driven by robust sales, even as persistency levels saw a decline.
Unum International Segment
This segment reported a 3.7% decrease in adjusted operating income to $38.8 million. However, it experienced a strong premium income growth of 14.0%, driven by favorable persistency and strong sales performance, especially in the group life and supplemental product lines.
Colonial Life Segment
The Colonial Life segment showed resilience with an adjusted operating income increase of 2.8%. Premium income rose by 3.3%, accompanied by a substantial 11.9% increase in net investment income. This was driven by an increase in the level and yield of invested assets.
Closed Block Segment
The Closed Block segment saw significant challenges, with an adjusted operating income drop to $14.1 million, primarily impacted by a strategic reinsurance transaction (Fortitude Re). Premium income decreased by 8.7%, and net investment income fell sharply by 21.0%, reflecting the company's ongoing efforts to manage risks related to long-term contracts.
Key Developments
During the third quarter of 2025, Unum Group completed its annual GAAP reserve assumption updates, leading to an after-tax net reserve increase of $377.8 million. This strategic action was necessary to align with updated experience trends in long-term care, which was partially offset by favorable trends in core business lines.
The company also managed to maintain a strong balance sheet with holding company liquidity of $2.0 billion and a risk-based capital ratio of approximately 455%. These measures positioned Unum Group well to achieve its full-year outlook, despite the challenging environment.
Comments from Company Officers
Richard P. McKenney, president and CEO of Unum Group, stated, "We delivered solid top and bottom-line performance across our core businesses in the third quarter. Our premium and sales growth reflect sustained demand and customer retention for our market-leading offerings. We continue to return capital to shareholders through dividends and share repurchases, while actively managing and reducing exposure in the closed block."
Dividends and Share Repurchases
Unum Group returned approximately $980 million to shareholders year-to-date, including $250 million through share repurchases and $78.3 million in common stock dividends during the third quarter. The company's disciplined approach to capital management underscores its commitment to enhancing shareholder value.
Unum Group Stock Forecast
Given Unum Group's strategic initiatives and financial performance, the stock forecast suggests potential fluctuations within a defined range. With a robust capital structure, strong fundamentals, and its commitment to long-term growth, Unum's stock price is anticipated to remain resilient. Based on current trends and market conditions, the high projection for Unum's stock price could reach $55, while a more conservative estimate would place it around $45. This outlook accounts for the company's solid performance in its core business segments, ongoing capital return initiatives, and the effective management of its risk profile.
