Unum Group Q4 Earnings and Revenues Miss Estimates, Premiums Rise Y/Y

Unum Group’s UNM fourth-quarter 2025 operating net income of $1.92 per share missed the Zacks Consensus Estimate by 9%. The bottom line decreased 5.4% year over year.

The quarterly results were soft across all its segments.

Operational Update         

Total operating revenues of Unum Group were $3.2 billion, almost flat year over year. The top line missed the Zacks Consensus Estimate by 1.1%.

Premium increased 2% from the prior-year quarter to $2.7 billion, which matched our estimate. The Zacks Consensus Estimate was $2.8 billion. 

Total benefits and expenses increased 8% year over year to $3 billion, largely attributable to higher policy benefits, commissions and other expenses. Our estimate for the same was $2.9 billion.

Quarterly Segment Update

Unum U.S.: Premium income was $1.7 billion, up 1.6% year over year. 

Adjusted operating income declined 13.1% year over year to $289.7 million. It excludes the amortization of the deferred gain on reinsurance of $4.4 million and the impact of non-contemporaneous reinsurance of $0.6 million. The Zacks Consensus Estimate was pegged at $330.8 million. Our estimate was $307.9 million.

Unum International: Premium income of $283.9 million increased 17.1% year over year.  

Adjusted operating income was $37.6 million, down 11.7% year over year. The Zacks Consensus Estimate was pegged at $40.7 million. Our estimate was $53.5 million.

The Unum U.K. line of business premium income was £173 million, up 10.3% from the year-ago quarter due primarily to in-force block growth, sales, and favorable persistency. Adjusted operating income, in local currency, of £22.3 million was down 19.2% year over year.

The benefit ratio, excluding the reserve assumption updates, was 77.9%, which deteriorated 580 basis points (bps), due primarily to unfavorable benefit experience in the group long-term disability product line and higher inflation-linked experience in benefits. It was partially offset by favorable incidence in the group life product line. 

Sales increased 20.4% to £25.4 million. 

Persistency in 2025 in the group long-term disability, group life product, as well as the supplemental product line, increased year over year.

Colonial Life: Premium income increased 3.2% from the prior-year figure to $463.2 million, driven by stable overall persistency and prior period sales.   

Sales increased 10% from the year-ago figure to $203.9 million. 

Adjusted operating income decreased 7.2% from the prior-year period to $113.9 million. Our estimate was $121 million, while the Zacks Consensus Estimate was pegged at $124.4 million. 

Persistency was 78.4% in 2025, which expanded 10 bps year over year. The benefit ratio, excluding the reserve assumption updates, deteriorated 150 bps year over year to 48.3%.

Closed Block: Premium income decreased 10.1% to $196.4 million due to the impact of the Fortitude Re reinsurance transaction. Adjusted operating income was $21.1 million, which declined 23.8% year over year. The Zacks Consensus Estimate was pegged at $12.8 million.

Corporate: The segment incurred an adjusted operating loss of $51.1 million, wider than the year-ago quarter’s loss of $50.4 million, primarily due to higher operating expenses, mostly offset by an increase in net investment income resulting from an increase in the level of invested assets. Our estimate for loss was $43 million, while the Zacks Consensus Estimate was pegged at a loss of $45.1 million.

Full-Year Highlights

Operating net income of $8.13 per share missed the Zacks Consensus Estimate of $8.31. The bottom line increased 3.7% year over year. Revenues increased 2% to $13.2 billion, in line with the consensus estimate.

Premium increased 3.2% year over year.

Capital Management

As of Dec. 31, 2025, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 440%. 

Unum Group exited the fourth quarter with holding company liquidity worth $2.3 billion.
 
Book value per share grew 9.3% year over year to $67.11 as of Dec. 31, 2025.

UNM bought back shares worth $1 billion.

2026 Outlook

Premium growth is expected between 4% and 7%.

Adjusted operating income per share is expected to be between $8.60 and $8.90, indicating growth of about 8% to 12%.

Zacks Rank

UNM currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Aflac Incorporated AFL reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.57, which missed the Zacks Consensus Estimate by 8.2%. The bottom line improved 0.6% year over year. Adjusted revenues totaled $4.9 billion, which declined 9.9% year over year. The top line beat the consensus mark by 8.7%.

Pre-tax earnings decreased 26.4% year over year to $1.6 billion.

Aflac currently anticipates a benefit ratio of 60-63% for the Aflac Japan unit in 2026. The metric for the Aflac U.S. unit is projected to be in the 48-52% range. The expense ratio for Aflac Japan is estimated to be 20-23%. The same for Aflac U.S. is reiterated to be in the band of 36-39%.

Underlying earned premiums are likely to witness a year-over-year decline of 1-2% for the Japan unit in 2026. Net earned premiums for the U.S. unit are likely to be in the lower end of the 3-6% range. The pretax profit margin for Aflac Japan is estimated to be between 33% and 36%, and the same for Aflac U.S. is projected to be in the range of 17-20% for 2026.

AXIS Capital Holdings Limited AXS reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.

Total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment and growth of 5% in the Reinsurance segment.

Chubb Limited CB reported fourth-quarter 2025 core operating income of $7.52 per share, which beat the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.9% year over year.

Total operating revenues also improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%. Chubb’s strong performance was driven by solid underwriting profit, robust premium growth and record investment income.

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