Unum (UNM) Q4 2024 earnings summary

Executive summary

• Delivered strong 2024 results with after-tax adjusted operating EPS growth of 10.2%, exceeding initial expectations, and core operations ROE over 20%.

• Maintained a robust balance sheet with $2 billion in holding company liquidity and a 430% risk-based capital ratio at year-end.

• Raised dividend by 15% and repurchased approximately $1 billion in shares, returning over $1.3 billion to shareholders.

• No capital contributions required for LTC in 2024, reflecting successful prior actions and a strong capital buffer.

• Strategy emphasizes customer-centric innovation, digital leadership, and disciplined capital allocation for long-term value.

Financial highlights

• After-tax adjusted operating income reached $1.6 billion, with adjusted operating EPS of $8.44, up from $7.66 in 2023.

• Book value per share (excluding AOCI) at year-end 2024 was $75.51, up 12.7% from 2023.

• Premium income for Q4 2024 was $2.63 billion, with net investment income of $543.6 million.

• Returned $1.3 billion to shareholders via dividends and share repurchases, more than double the prior year.

• Effective tax rate on adjusted operating earnings was 21.0% for full year 2024.

Outlook and guidance

• 2025 EPS growth expected in the 8%-12% range, building on 10% growth in 2024.

• Free cash flow from core businesses projected at $1.3-$1.6 billion in 2025.

• Premium growth guidance for 2025 is 4%-7%, with consolidated sales growth in high single digits.

• Share repurchases planned between $500 million and $1 billion, with continued dividend increases.

• Capital levels expected to remain strong, with RBC between 425%-450% and holding company liquidity above $2 billion.