CHATTANOOGA, Tenn. - Unum Group (NYSE: NYSE:UNM) has reported a robust first quarter in 2024, with earnings surpassing analyst expectations and the company raising its full-year outlook. The insurer announced adjusted earnings per share (EPS) of $2.12, which was $0.15 higher than the consensus estimate of $1.97. Revenue for the quarter was in line with expectations, coming in at $3.2 billion.
The company's performance reflects a strong start to the year, with a 6.6% increase in core operations premium growth on a constant currency basis. Unum Group's group disability, group life, and accidental death & dismemberment (AD&D), as well as supplemental and voluntary lines, showed robust margins.
The company's balance sheet remains strong, with holding company liquidity of $1.4 billion and a weighted average risk-based capital ratio of approximately 440 percent, surpassing target levels.
Unum Group's capital deployment strategy has been aggressive, with an accelerated pace of share repurchases and a 15% increase in the common stock dividend slated for the third quarter of 2024. The book value per common share grew by 13.9% from the same quarter last year, indicating a solid increase in shareholder equity.
"We are very pleased with our first quarter performance, which represents a very strong start to the year," said Richard P. McKenney, president and chief executive officer. He highlighted the company's healthy core premium growth and strong performance in Group Disability and Group Life businesses.
McKenney also emphasized the company's favorable market conditions and demand for digital capabilities, which position Unum Group well for continued growth and value creation for shareholders.
Looking ahead, Unum Group has raised its full-year 2024 outlook, expecting an increase in after-tax adjusted operating income per share of 7% to 9% compared to the full-year 2023. This optimistic guidance reflects the company's confidence in its ability to sustain growth and profitability.
The company's Unum US segment reported a 23.3% increase in adjusted operating income, while premium income grew by 6.1%. The group disability line of business saw a 13.1% increase in adjusted operating income, with premium income for this line growing by 4.7%.
The group life and AD&D line of business nearly doubled its adjusted operating income with a 96.5% increase, and premium income in this line grew by 7.0%.
Unum International segment's adjusted operating income saw a slight decrease of 2.6%, despite a 22.9% increase in premium income. The Colonial Life segment reported a 21.1% increase in adjusted operating income, with a 4.1% rise in premium income.
The company's strong quarterly performance and optimistic outlook for the full year underscore its strategic positioning and operational effectiveness in a competitive insurance market.
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