Published on 25 Apr 2024 on Zacks via Yahoo Finance

Is a Beat in Store for Unum Group (UNM) This Earnings Season?

Unum Group UNM is slated to report first-quarter 2024 earnings on Apr 30, after market close. The insurer’s earnings beat estimates in three of the last four reported quarters and missed in one.

Factors to Note

Strong persistency in the in-force business, better pricing and solid sales in most of the business segments are likely to have benefited UNM’s premiums in the to-be-reported quarter. The Zacks Consensus Estimate is pegged at $2.6 billion, indicating an increase of 5.4% from the year-ago reported quarter. Our estimate is pegged at $2.5 billion.An improving rate environment is likely to have supported higher net investment income. Our estimate is pegged at $500.3 million.Improved premiums and an increase in net investment income are likely to have aided top-line growth. The Zacks Consensus Estimate is pegged at $3.2 billion, suggesting an increase of 5.1% from the year-ago number.Favorable benefits experience in group product lines, disciplined sales trends, strong persistency in group lines and growth of new product lines are likely to have favored Unum U.S. as well as Colonial Life segments. Our estimate for Unum US premiums is pegged at $1.7 billion and at $240.8 million for Colonial Life.Growth in the in-force block, resulting from the impact of rate increases in the group long-term disability product line, and higher persistency are likely to have benefited Unum International in the to-be-reported quarter. Our estimate is pegged at $203.7 million.Expenses are likely to have increased because of higher commissions, interest and debt expenses, amortization of deferred acquisition costs and compensation expenses. We expect total benefits and expenses to be $2.7 billion.Continued share buybacks are likely to have provided a boost to the bottom line.The Zacks Consensus Estimate for earnings per share is pegged at $1.97, indicating an increase of 5.4% from the year-ago reported figure.