Unum (UNM) Q4 2025 earnings summary

Executive summary

• 2025 saw disciplined operational performance, digital investment, and risk profile improvement in the Closed Block, but adjusted EPS of $8.13 was down year-over-year and below expectations due to higher-than-expected benefits experience.

• Core operations delivered a 20% ROE, with premium growth of 4.5% overall, 3.1% at Colonial Life, and 10% in International, supported by strong persistency and digital adoption.

• Reported Q4 2025 net income of $174.1M ($1.04 per diluted share), down from $348.7M ($1.92 per share) in Q4 2024; after-tax adjusted operating income was $322.3M ($1.92 per share).

• Two small acquisitions were completed, the dividend was increased by 10%, and $1 billion in shares were repurchased, returning all generated capital to shareholders.

• Book value per share rose 9.3% to $67.11; excluding AOCI, book value per share increased 3.3% to $78.02.

Financial highlights

• Full-year adjusted EPS was $8.13, down year-over-year; after-tax adjusted operating earnings were $1.4 billion ($8.83 per share).

• Q4 2025 total revenue was $3.24B, with full-year revenue at $13.08B.

• Core operations premium grew 3.7% for the year, 2.9% in Q4; adjusted for runoff and reinsurance, premium growth was 4.5%.

• Adjusted ROE for core operations was approximately 20% for both the quarter and full year.

• Statutory earnings for the year were $1.1 billion, below the $1.3–$1.6 billion expectation.

Outlook and guidance

• 2026 guidance: top-line growth of 4%-7%, EPS growth of 8%-12% (to $8.60–$8.90), and continued 10% dividend growth and $1 billion in share repurchases.

• After-tax adjusted operating income per share for 2026 is projected at $8.60–$8.90, representing 8%–12% growth over the redefined 2025 result of $7.93 per share.

• Group Disability Benefit Ratio expected to stabilize at 62%-64% in 2026, supporting ROE >25%.

• Capital generation expected at $1.4–$1.6 billion, with free cash flow of $1.2–$1.4 billion; capital deployment to shareholders targeted at 100% of free cash flow.

• Beginning in 2026, after-tax adjusted operating income will exclude Closed Block segment results.