Unum (UNM) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $335.6M ($1.92 per diluted share), down from $389.5M ($2.05) in Q2 2024; after-tax adjusted operating income was $361.1M ($2.07 per share), down from $411.4M ($2.16).

• Premium growth was 4.6% year-over-year, with most product lines contributing; adjusted operating ROE reached 20.9%.

• Results included a $224.5M net investment loss for H1 2025, mainly from impairment and realized losses tied to a reinsurance transaction.

• Strategic priorities included reducing long-term care exposure, enhancing digital capabilities, and disciplined capital deployment.

• Share repurchases reached $500M YTD, with full-year repurchase expectation at the top end of $500M–$1B.

Financial highlights

• Total revenue for Q2 2025 was $3.36B, up 4.0% year-over-year; premium income grew 4.6% to $2.75B.

• Adjusted after-tax operating income per share was $2.07, down from $2.16 year-over-year.

• Unum US segment adjusted operating income was $318.2M, down 11% year-over-year; Colonial Life adjusted operating income was $117.4M, up 0.4%.

• Closed Block segment adjusted operating income dropped to $3.9M from $51.6M, mainly due to unfavorable LTC experience.

• Weighted average diluted shares outstanding decreased to 174.4M from 190.3M year-over-year.

Outlook and guidance

• Full-year 2025 after-tax adjusted operating income per share outlook revised to approximately $8.50.

• Premium growth for core operations is expected to be 3-6% for the year, with sales growth flat but persistency above expectations.

• Closed block earnings are forecasted between $90M and $110M for the full year.

• Share repurchases are anticipated at the top end of the $500M-$1B range.

• Management expects positive operating trends in core businesses to continue in 2025, with premium and sales growth supported by product value and market demand.