Unum Group Q3 revenue misses estimates

By Reuters News


Overview

  • US workplace benefits insurer's Q3 revenue declined and missed analyst expectations

  • After-tax adjusted operating income fell yr/yr, reflecting weaker group disability results

  • Company repurchased $202 mln in shares during the quarter


Outlook

  • Unum Group expects full-year 2026 after-tax adjusted operating income per share of $8.30-$8.50

  • Company revised its definition of after-tax adjusted operating income to include annual reserve assumption updates


Result Drivers

  • GROUP DISABILITY CLAIMS - Co said elevated claim submissions in group disability offset strong performance in voluntary benefits, per CEO Richard P. McKenney

  • RESERVE ASSUMPTION UPDATES - Less favorable reserve assumption updates and refinements contributed to higher benefit ratios in several lines, including group disability and supplemental/voluntary

  • INVESTMENT PORTFOLIO LOSSES - Net investment loss of $853 mln, mainly due to impairment losses related to asset transfers for the Fortitude Re reinsurance transaction


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$2.55 bln

$2.96 bln (4 Analysts)

Q3 Net Loss

$419.70 mln

Q3 Adjusted Operating Income

$349 mln

Q3 Pretax Loss

$549.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "hold."

  • Wall Street's median 12-month price target for Unum Group is $99.00, about 8.8% above its November 2 closing price of $91.02

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 2 - CNA Financial Q3 net income falls, catastrophe losses rise

  • Nov 3 - United Fire Group Q3 profit falls 10% as combined ratio worsens

  • Nov 3 - Bowhead Q3 profit beats estimates on divisional premium growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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