Unum Group Q3 2024 Earnings Call Overview

In the third quarter earnings call of 2024, Unum Group (NYSE: UNM) highlighted its strong financial performance, led by Senior VP Matt Royal and President and CEO Rick McKenney. The company reported adjusted earnings per share (EPS) of $2.13, and statutory earnings exceeded $300 million this quarter, totaling over $1 billion year-to-date.

Key Highlights

• Adjusted EPS: $2.13, statutory earnings surpassing $300 million for the quarter.
• EPS Growth: Targeted growth of 10% to 15% for 2024.
• Premium Growth: Core operations premium growth of 4.6%.
• Group Disability and Life: Strong, with benefit ratios under 70%.
• Colonial Life Premium: Increased by 2.5% with international segment growth exceeding 10%.
• Liquidity and ROI: Strong balance sheet with $1.4 billion liquidity and 12.5% return on equity.
• Share Repurchase: Plan set at approximately $1 billion for 2024, up from $250 million in 2023.

Company Outlook

• Premium Growth: Anticipated 5% to 7% premium growth and 10% to 15% EPS growth for the year.
• Focus Areas: Organic growth and potential acquisitions; recently raised dividend by 15%.

Bearish Concerns

• Sales Decline: Notable decreases in Group Disability sales.
• Operating Income: Decline in supplemental and voluntary lines.

Bullish Insights

• Group Life Income: Increased due to lower benefit ratios.
• International Income: Improved performance in the U.K. and Poland.
• Colonial Life: Benefiting from a lower benefit ratio.

Q&A Session Highlights

• Long-Term Care (LTC): Management confident in LTC operations with possible risk transfer at favorable rates.
• Technology Adoption: Growing market traction for HR Connect and leave management systems.
• Future Guidance: Positive third-quarter results support planning for 2025.

Executives expressed optimism regarding operational strategies and business trajectories despite current challenges. Their commitment highlighted aims for pricing stability and customer relationship enhancements leading into 2025. The strong Q3 results set a positive tone for the remainder of 2024.

InvestingPro Insights

InvestingPro noted Unum Group’s adjusted P/E ratio of 6.76, suggesting it's trading at a low earnings multiple. Revenue growth of 4.43% aligns with premium growth. Additionally, Unum's 16 consecutive years of dividend increases, highlighted by a 2.73% yield, reinforces its commitment to shareholder returns.