Unum Group Q2 Earnings Miss, Revenues Top, Premiums Rise Y/Y

Unum Group’s UNM second-quarter 2025 operating net income of $2.07 per share missed the Zacks Consensus Estimate by 7.2%. The bottom line decreased 4.2% year over year.The quarterly results reflected weakness in the Unum U.S, Corporate segments and Closed Block segments, partially offset by higher premiums across Unum International, Colonial Life.Operational Update        Total operating revenues of Unum Group were $3.4 billion, up 4.2% year over year, driven by higher premium income and improved net investment income. The top line beat the Zacks Consensus Estimate by 1.7%.Unum Group Price, Consensus and EPS Surprise Unum Group price-consensus-eps-surprise-chart | Unum Group QuotePremiums increased 4.6% from the prior-year quarter to $2.7 billion. The metric beat the Zacks Consensus Estimate by whiskers.Total benefits and expenses increased 7.6% year over year to $2.9 billion, largely attributable to higher policy benefits, including remeasurement gain, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses. Our estimate was 2.8 billion.Quarterly Segment UpdateUnum U.S.: Premium income was $1.8 billion, up 3.9% year over year.Adjusted operating income declined 11% year over year to $318.2 million. This was attributable to lower adjusted operating income at group disability as well as group life and accidental death and dismemberment. An increase in supplemental and voluntary line’s adjusted operating income limited the downside.The Zacks Consensus Estimate was pegged at $351 million. Our estimate was $354.4 million.Unum International: Premium income of $271.1 million increased 18.5% year over year.  Adjusted operating income was $41.6 million, down 2.1% year over year. Our estimate was $43.7 million.The Unum U.K. line of business premium income was £166.9 million, up 9.9% from the year-ago quarter due to in-force block growth. Adjusted operating income, in local currency, of £29.4 million was down 9.5% from a year ago.The benefit ratio was 75, which deteriorated 550 basis points (bps) owing to higher inflation-linked experience in benefits and higher incidence in the group long-term disability product line, partially offset by favorable incidence in the group life product line. Sales decreased 13.5% year over year to £38.3 million.Persistency increased in the group long-term disability, group life product line and the supplemental line of business.Colonial Life: Premium income rose 3.6% from the prior-year figure to $462.1 million, primarily due to prior period sales and favorable overall persistencySales increased 2.9% from the year-ago figure to $126.5 million. Adjusted operating income increased 0.4% from the prior-year period to $117.4 million. Our estimate was $115.8 million, while the Zacks Consensus Estimate was $122 million.Persistency was 78.5%, which increased 30 bps year over year.The benefit ratio deteriorated 50 bps year over year to 48.3, primarily due to unfavorable benefit experience in the accident, sickness, and disability product line.Closed Block: Adjusted operating income was $3.9 million, which declined 92.5% year over year. Our estimate was $39.7 million, while the Zacks Consensus Estimate was pegged at $33.6 million.Corporate: The segment incurred an adjusted operating loss of $31.7 million against $45.3 million earned in the year-ago quarter due to an increase in net investment income, driven by an increase in miscellaneous investment income and an increase in the level of invested assets. Our estimate for loss was $48.2 million, while the Zacks Consensus Estimate was pegged at a loss of $45.3 million.Capital ManagementAs of June 30, 2025, the weighted average risk-based capital ratio for the company’s traditional U.S. insurance companies was approximately 485%.Unum Group exited the second quarter of 2025 with liquidity worth $1.9 billion.Book value per share grew 18.2% year over year to $65.7 as of June 30, 2025.UNM bought back 3.8 million shares for $303.3 million.2025 GuidanceFor 2025, UNM expects a revised after-tax adjusted operating income per shareof approximately $8.50 compared with $8.44 in 2024. Zacks RankUnum Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersFirst American Financial FAF reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.Cincinnati Financial Corporation CINF reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year. Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. However, the top line missed the consensus mark by 0.1%.  Investment income, net of expenses, increased 17.8% year over year to $285 million. Net written premiums climbed 11.1% year over year to $2.7 billion, driven by premium growth initiatives, price increases and a higher level of insured exposures, as well as contributions to growth from Cincinnati Re and Cincinnati Global.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chubb Limited (CB): Free Stock Analysis Report Cincinnati Financial Corporation (CINF): Free Stock Analysis Report Unum Group (UNM): Free Stock Analysis Report First American Financial Corporation (FAF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks