Unum (UNM) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $389.5 million ($2.05 per diluted share); after-tax adjusted operating income was $411.4 million ($2.16 per diluted share), up from $408.8 million ($2.06 per share) year-over-year.

• Core operations premium growth was 5.4% year-over-year, with robust margins and strong persistency, prompting an increase in full-year EPS growth outlook to 10%-15% from 7%-9%.

• Book value per share, excluding AOCI, exceeded $70, up 9.4% year-over-year.

• The company remains focused on disciplined execution, innovation, and prudent capital management, supported by a favorable macroeconomic environment and strong team performance.

• New $1 billion share repurchase authorization effective August 1, 2024.

Financial highlights

• Total Q2 2024 revenue was $3.23 billion, up 3.9% year-over-year; premium income rose to $2.63 billion, up 4.7%.

• Adjusted after-tax operating income per share reached $2.16, a record level, with strong operating performance across all businesses.

• Statutory after-tax operating income was $366.1 million for Q2 and $716.6 million for the first half of 2024.

• Net investment income increased to $545.1 million from $531.1 million year-over-year.

• Consolidated benefit ratio improved to 68.9% in Q2 2024 from 69.9% in Q2 2023.

Outlook and guidance

• Full-year 2024 EPS growth outlook raised to 10%-15%, reflecting confidence in margin sustainability and continued strong performance.

• Premium growth for core operations expected in the 5%-7% range for the year.

• Long-term EPS growth guidance remains at 8%-10% beyond 2024.

• Management expects positive operating trends in core businesses to continue, with premium and sales growth supported by strong demand for workplace financial protection products.