Unum (UNM) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $645.7 million ($3.46 per diluted share), up from $202.0 million ($1.02 per share) in Q3 2023, driven by reserve assumption updates and strong core operations.

• After-tax adjusted operating income for Q3 2024 was $398.0 million ($2.13 per share), up from $381.7 million ($1.94 per share) in Q3 2023.

• Book value per share grew 20.4% year-over-year to $59.36; excluding AOCI, book value per share rose 13.3% to $74.15.

• EPS growth expectations for 2024 raised to 10%-15%, above original outlook, driven by broad-based performance and robust cash flow.

• Persistency remains high across segments, with sales down in Q3 but expected to rebound in Q4, the largest sales quarter.

Financial highlights

• Total revenue for Q3 2024 was $3.22 billion, up 4.0% year-over-year; premium income grew 4.1% in Q3 and 5.0% for the nine months.

• Net investment income for Q3 2024 was $527.8 million, slightly up from $526.0 million in Q3 2023.

• Consolidated ROE was 12.5%, with core operations exceeding top-end outlook ranges.

• Group Life and AD&D segment adjusted operating earnings rose 80% year-over-year, driven by lower incidents.

• Colonial Life premium income grew 2.5% in Q3, with year-to-date growth of 3.4%.

Outlook and guidance

• Full-year 2024 outlook projects after-tax adjusted operating income per share to increase 10% to 15% over 2023.

• On track to achieve 5%-7% premium growth for 2024, with strong persistency and operational investments supporting sales.

• Unum US expected to meet full-year sales growth target of 5%-10%, with Q4 as the largest sales quarter.

• Colonial Life sales expected to be flat year-over-year; international segment to sustain strong growth.

• Share repurchases for 2024 projected at ~$1 billion, up from $250 million in 2023 and above the $500 million initial outlook.