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Mar 31

Unum Q1 2025 Earnings Report

Unum reported a decline in net income but posted strong adjusted earnings and maintained a robust capital position in Q1 2025.

Key Takeaways

Unum Group delivered solid adjusted operating results in Q1 2025 with $365.5 million in adjusted income, despite a drop in GAAP net income driven by investment losses. The company showed steady revenue growth and strengthened its balance sheet.

Adjusted operating income was $365.5 million, supported by premium growth and favorable persistency trends.

GAAP net income declined to $189.1 million, impacted by a $163.4 million after-tax investment loss.

Book value per share excluding AOCI rose 10.8% YoY to $76.17.

The risk-based capital ratio remained strong at approximately 460% with $2.2 billion in holding company liquidity.

Total Revenue
$3.09B
Previous year: $3.2B
-3.4%
EPS
$2.04
Previous year: $2.12
-3.8%
Shares Outstanding
175.83M
Previous year: 191.45M
-8.2%
Book Value Per Share
$63.8
Previous year: $53.4
+19.5%
Book Value Ex AOCI
$76.2
Previous year: $68.7
+10.8%
Free Cash Flow
$318M
Previous year: $270M
+17.7%
Total Assets
$54.3B
Previous year: $53.6B
+1.3%

Unum

Unum

Unum Revenue by Segment

Unum Revenue by Geographic Location

Forward Guidance

Unum expects full-year 2025 adjusted operating income per share to grow 6% to 10% over 2024.

Positive Outlook

  • Premium growth across core operations.
  • Strong liquidity position supports strategic flexibility.
  • Improved book value metrics.
  • Solid capital buffer with 460% RBC ratio.
  • Favorable claims and persistency trends in several product lines.

Challenges Ahead

  • Decrease in net income due to investment losses.
  • Persistency declines in several group product lines.
  • Sales drop in group disability and Unum International segments.
  • Net investment income slightly declined in key areas.
  • Increased benefit ratios in some products due to higher claims incidence.