Unum Group Q4 Income Misses by 9% as Expenses Jump 8%
Unum Group’s Q4 operating net income fell 5.4% year over year to $1.92 per share and missed consensus by 9%, while revenues held at $3.2 billion, just 1.1% below estimates. Premiums rose 2% to $2.7 billion, but benefits and expenses climbed 8% to $3 billion, and the company repurchased $1 billion of shares.
1. Q4 Financial Results
Unum Group reported operating net income of $1.92 per share for Q4, down 5.4% year over year and missing estimates by 9%. Total operating revenues were $3.2 billion, flat year over year and 1.1% below consensus, while premium income rose 2% to $2.7 billion.
2. Segment Performance
In Unum U.S., adjusted operating income fell 13.1% to $289.7 million on modest premium growth. International premiums jumped 17.1% to $283.9 million but income dropped 11.7%. Colonial Life saw premiums up 3.2% and sales up 10%, yet operating income declined 7.2%. Closed Block premium income fell 10.1%, driving a 23.8% income decline.
3. Capital Management and Share Repurchase
As of December 31, Unum held $2.3 billion in liquidity and a 440% risk-based capital ratio. Book value per share rose 9.3% to $67.11, and the company executed $1 billion in share buybacks during the quarter.
4. 2026 Outlook
Unum projects 4%–7% premium growth and adjusted operating income per share of $8.60–$8.90, representing 8%–12% growth over 2025 levels.