Unum Group Gears Up to Report Q3 Earnings: Here's What to Expect

Unum Group UNM is expected to register an improvement in its top and bottom lines when it reports third-quarter 2025 results on Nov. 3, after the closing bell.

The Zacks Consensus Estimate for UNM’s third-quarter revenues is pegged at $3.30 billion, indicating 2.4% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.16 per share. The estimate suggests a year-over-year increase of 1.4%.

What the Zacks Model Unveils for UNM

Our proven model does not conclusively predict an earnings beat for Unum Group this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. However, this is not the case here, as you can see below:

Unum Group’s Earnings ESP: UNM has an Earnings ESP of -0.26% at present. This is because the Most Accurate Estimate of $2.15 is pegged lower than the Zacks Consensus Estimate of $2.16. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Unum Group Price and EPS Surprise

Unum Group price-eps-surprise | Unum Group Quote

Zacks Rank of Unum Group: UNM currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape Q3 Results of UNM

Favorable persistency and better sales in the operating segments are likely to have favored premiums in the third quarter. The Zacks Consensus Estimate for premium income is pegged at $2.7 billion. We expect premium income to be $2.7 billion, suggesting a 2.3% increase from the year-ago quarter.

Higher miscellaneous investment income and an increase in the level of invested assets are likely to have supported higher net investment income. Our estimate for miscellaneous investment income is pegged at $531.8 million. The Zacks Consensus Estimate is pegged at $532 million, suggesting a 0.7% increase from the year-ago quarter.

The performance of Unum U.S. and Colonial Life — two of the largest operating segments — is likely to have been driven by higher premium income, favorable persistency, improved benefit experience across life, accident, sickness and disability product lines, favorable recoveries in long-term disability product line, and enhanced stop loss experience.

Better performance in life and group disability is likely to aid Unum U.S. results.

Our estimate for Unum U.S. operating revenues is pegged at $2 billion, while the same for Colonial Life is $485.4 million.

Unum International is expected to have benefited from the expansion of its in-force block, favorable recoveries in its group long-term disability product line, higher premium income, improved benefits experience and increased sales and persistency across both Unum International and Unum U.K. Our estimate for Unum International’s operating revenues is pegged at $291 million.

Expenses are likely to have increased because of higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs, and other expenses. We expect total benefits and expenses to be $2.8 billion.

Continued share buybacks are likely to have contributed to a boost in the bottom line.

Stocks to Consider

Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:

The Allstate Corporation ALL has an Earnings ESP of +13.73% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $6.73 per share, implying an increase of 72.1% from the year-ago reported figure.

ALL’s earnings beat estimates in each of the last four quarters.

HCI Group, Inc. HCI has an Earnings ESP of +87.40% and carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.35 per share, implying an increase of 400% from the year-ago reported figure.

HCI’s earnings beat estimates in each of the last four quarters.

Berkshire Hathaway Inc. (BRK.B) has an Earnings ESP of +18.72% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.70 per share, implying an increase of 0.4% from the year-ago reported figure.

BRK.B’s earnings beat estimates in one of the last four quarters while missing in the other three.

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This article originally published on Zacks Investment Research (zacks.com).

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