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Sep 30, 2022

Unum Q3 2022 Earnings Report

Reported net income and strong operating performance, shifting towards endemic COVID impacts and nearing long-term growth expectations.

Key Takeaways

Unum Group reported a net income of $410.7 million for Q3 2022, compared to $328.6 million for Q3 2021. After-tax adjusted operating income was $303.7 million, compared to $210.5 million for the same period last year. The company's results reflect continued strong operating performance, the shift towards endemic COVID impacts, and core business premium trends nearing long-term growth expectations.

Net income of $410.7 million ($2.04 per diluted common share) for the third quarter of 2022; after-tax adjusted operating income was $303.7 million ($1.51 per diluted common share).

Core operations sales and premium growth on a constant currency basis of 14.1 percent and 3.9 percent, respectively.

Strong balance sheet with holding company liquidity of $1.1 billion and weighted average risk-based capital ratio of approximately 415 percent, providing significant financial flexibility.

Expanded hedging program to help mitigate interest rate risk in the long-term care block; notional amount entered into increased to $679.0 million through September 30, 2022.

Total Revenue
$2.96B
Previous year: $2.97B
-0.3%
EPS
$1.51
Previous year: $1.03
+46.6%
Gross Profit
$2.81B
Previous year: $2.92B
-4.0%
Cash and Equivalents
$143M
Previous year: $122M
+17.7%
Free Cash Flow
$251M
Previous year: $430M
-41.7%
Total Assets
$60.9B
Previous year: $70.6B
-13.8%

Unum

Unum

Unum Revenue by Segment

Forward Guidance

The Company expects positive operating trends in our core business during 2022, with solid premium growth and improving claim experience as impacts from COVID-19 lessen. The Company continues to anticipate an increase in after-tax adjusted operating income per share of 40 percent to 45 percent relative to full-year 2021.

Positive Outlook

  • Positive operating trends in core business during 2022
  • Solid premium growth
  • Improving claim experience
  • Lessening impacts from COVID-19
  • Increase in after-tax adjusted operating income per share of 40 percent to 45 percent relative to full-year 2021

Revenue & Expenses

Visualization of income flow from segment revenue to net income