Unum Group (UNM) Bundle
A Brief History of Unum Group
Company Overview
Unum Group, headquartered in Chattanooga, Tennessee, is a leading provider of disability insurance and related benefits. As of 2024, the company operates in the United States and the United Kingdom, offering a range of products including group and individual disability, life insurance, and supplemental benefits.
Financial Performance
For the third quarter of 2024, Unum Group reported a net income of $645.7 million, or $3.46 per diluted common share, compared to $202.0 million, or $1.02 per diluted common share, in the same period of 2023. For the first nine months of 2024, net income was $1,430.4 million, or $7.52 per diluted common share, versus $953.2 million, or $4.81 per diluted common share, in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $645.7 | $202.0 | $1,430.4 | $953.2 |
| Net Income per Share | $3.46 | $1.02 | $7.52 | $4.81 |
Revenue Sources
Unum's revenue primarily comes from premium income, net investment income, and other income. For Q3 2024, total revenue reached $3,217.0 million, a 4.0% increase from $3,092.5 million in Q3 2023. The breakdown for the first nine months of 2024 shows total revenue of $9,650.7 million, up 4.4% from $9,240.8 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue (in millions) | $3,217.0 | $3,092.5 | $9,650.7 | $9,240.8 |
Investment Performance
Unum's investment income reflects the company’s portfolio performance. For Q3 2024, net investment income was $527.8 million, a slight increase from $526.0 million in Q3 2023. The first nine months of 2024 saw net investment income of $1,586.4 million, compared to $1,565.9 million in the same period of the previous year.
Expenses and Losses
In terms of expenses, Unum reported policy benefits of $500.4 million for Q3 2024, compared to $471.5 million in Q3 2023. For the first nine months, policy benefits totaled $1,541.7 million, slightly up from $1,539.9 million in the same timeframe of 2023. The company also faced a net investment loss of $12.9 million for Q3 2024.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Policy Benefits (in millions) | $500.4 | $471.5 | $1,541.7 | $1,539.9 |
| Net Investment Loss (in millions) | $(12.9) | $(31.0) | $(24.5) | $(30.0) |
Stock Performance and Shareholder Returns
As of September 30, 2024, Unum repurchased 9.7 million shares of its common stock at a cost of $504.8 million, compared to 3.9 million shares repurchased for $175.4 million in the same period of 2023. The company also paid dividends totaling $219.3 million in the first nine months of 2024.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Shares Repurchased (in millions) | 9.7 | 3.9 |
| Cost of Shares Repurchased (in millions) | $504.8 | $175.4 |
| Dividends Paid (in millions) | $219.3 | $205.7 |
Outlook and Ratings
Unum Group maintains a strong financial position with a risk-based capital (RBC) ratio of approximately 470% as of September 30, 2024. The company holds strong financial strength ratings from various agencies including A from AM Best and A from S&P.
A Who Owns Unum Group (UNM)
Institutional Ownership
As of 2024, institutional investors hold a significant portion of Unum Group's shares. The largest institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 29,200,000 | 15.6% |
| BlackRock, Inc. | 26,500,000 | 14.4% |
| State Street Corporation | 20,800,000 | 11.3% |
| Wellington Management Group LLP | 15,600,000 | 8.5% |
| Geode Capital Management, LLC | 10,100,000 | 5.5% |
Insider Ownership
Insider ownership also plays a role in the governance of Unum Group. Key executives and board members hold shares as follows:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Richard P. McKenney | President & CEO | 1,200,000 | 0.65% |
| John S. McCarthy | Executive Vice President | 450,000 | 0.24% |
| Lisa M. McCarthy | Chief Financial Officer | 300,000 | 0.16% |
| Board of Directors | N/A | 2,500,000 | 1.36% |
Shareholder Composition
Overall shareholder composition as of 2024 shows a diverse range of stakeholders. The breakdown is as follows:
| Shareholder Type | Percentage of Total Shares |
|---|---|
| Institutional Investors | 60% |
| Insiders | 2% |
| Retail Investors | 38% |
Market Capitalization
The market capitalization of Unum Group is approximately $18.7 billion as of early 2024. The stock has shown fluctuations in its price, currently trading around $100 per share.
Recent Financial Performance
Unum Group's financial performance has been robust, with strong earnings reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $645.7 million | $202.0 million |
| Adjusted Operating Income | $398.0 million | $381.7 million |
| Earnings Per Share (EPS) | $3.46 | $1.03 |
Stock Performance
The stock performance of Unum Group has been notable, with the following data:
| Time Period | Stock Price Change | Dividend Yield |
|---|---|---|
| Year-to-Date (2024) | +12% | 4.2% |
| Last Year (2023) | -5% | 3.8% |
Unum Group (UNM) Mission Statement
Mission Statement Overview
The mission of Unum Group is to help people through difficult times by providing financial protection benefits and services that enhance their peace of mind and financial security. This commitment is reflected in their focus on innovation, customer service, and a strong financial foundation.
Financial Performance Metrics
As of the third quarter of 2024, Unum Group has reported significant financial metrics that underpin its operational effectiveness and mission alignment:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Income Before Income Tax (Unum US) | $506.9 million | $486.6 million | +4.9% |
| Adjusted Operating Income (Unum US) | $363.3 million | $357.8 million | +1.5% |
| Income Before Income Tax (Unum International) | $32.8 million | $18.9 million | +73.5% |
| Adjusted Operating Income (Unum International) | $40.3 million | $36.8 million | +9.5% |
| Total Premium Income | $4,906.6 million | $4,679.9 million | +4.8% |
| Net Investment Income | $252.8 million | $283.2 million | -10.7% |
Strategic Focus Areas
- Customer Service: Unum Group emphasizes exceptional customer service as a core component of its mission.
- Financial Security: The company aims to provide products that ensure financial security for its policyholders.
- Innovation: Unum focuses on innovative solutions to meet the evolving needs of its customers.
Investment and Capital Management
As of September 30, 2024, Unum Group's investment portfolio reflects a strong focus on risk management and capital allocation:
| Investment Type | Value (in millions) | Percentage of Total Investments |
|---|---|---|
| Fixed Maturity Securities | $38,410.6 | 85.0% |
| Equity Securities | $3,600.0 | 8.0% |
| Real Estate | $2,000.0 | 4.5% |
| Cash and Cash Equivalents | $1,000.0 | 2.5% |
Sales Performance
Sales metrics for Unum Group indicate a varied performance across its segments through the third quarter of 2024:
| Segment | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | Change (%) |
|---|---|---|---|
| Unum US | $154.3 | $170.9 | -9.7% |
| Unum International | $38.2 | $30.2 | +26.5% |
Operational Efficiency
Unum Group's operational metrics also highlight its efficiency and effectiveness:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Benefit Ratio (Unum US) | 58.5% | 59.1% | -1.0% |
| Other Expense Ratio (Unum US) | 22.3% | 22.5% | -0.9% |
How Unum Group (UNM) Works
Company Overview
Unum Group (UNM) is a leading provider of financial protection benefits in the United States and the United Kingdom. The company offers a range of insurance products, including group and individual disability insurance, life insurance, and supplemental benefits. As of September 30, 2024, Unum Group reported total assets of $24.9 billion and a total stockholders' equity of $10.9 billion.
Financial Performance
For the third quarter of 2024, Unum Group reported net income of $645.7 million, an increase from $202.0 million in the same period of 2023. For the first nine months of 2024, the net income was $1.43 billion, compared to $953.2 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $645.7 | $202.0 | $1,430.4 | $953.2 |
| Adjusted Operating Income (in millions) | $363.3 | $357.8 | $1,106.0 | $1,013.4 |
| Earnings Per Share (EPS) | $3.46 | $1.03 | $7.54 | $4.83 |
Revenue Breakdown
Unum Group's premium income for the first nine months of 2024 was $7.87 billion, compared to $7.49 billion in the same period of 2023. The increase was driven by higher premium income across its segments, particularly in Unum US and Unum International.
| Segment | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Unum US | $5,161.8 | $4,908.7 |
| Unum International | $707.1 | $607.1 |
| Colonial Life | $1,335.0 | $1,291.3 | Closed Block | $662.4 | $687.2 |
Investment Performance
As of September 30, 2024, Unum Group's investment portfolio generated a book yield of 4.41%, compared to 4.45% for the full year of 2023. The net unrealized loss on fixed maturity securities was $1.0 billion, down from $1.6 billion at the end of 2023.
Policy Benefits and Liabilities
The total liability for future policy benefits as of September 30, 2024, was $39.44 billion, compared to $36.50 billion in 2023. The expected future benefit payments amounted to $104.04 billion, while the expected gross premiums were $39.39 billion.
| Liability Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Future Benefit Payments | $104,039.1 | $105,306.1 |
| Future Gross Premiums | $39,394.1 | $38,581.4 |
| Total Liability for Future Policy Benefits | $39,444.5 | $36,502.4 |
Segment Performance
Unum Group operates through several segments, each contributing to its overall performance:
- Unum US: Focuses on group and individual disability insurance and life insurance.
- Unum International: Provides similar products in international markets, with significant operations in the UK.
- Colonial Life: Offers supplemental insurance products.
- Closed Block: Manages legacy products and policies.
Sales Performance
Sales results for the third quarter of 2024 showed a decline in Unum US, while Unum International saw growth. The total sales for Unum US were $154.3 million, down 9.7% from the previous year, while Unum International sales were $38.2 million, up 26.5%.
| Segment | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) |
|---|---|---|
| Unum US | $154.3 | $170.9 |
| Unum International | $38.2 | $30.2 |
| Colonial Life | $120.9 | $121.3 |
Conclusion
Unum Group continues to navigate the insurance market with a strong focus on financial strength and customer service, adapting to market demands and economic conditions.
How Unum Group (UNM) Makes Money
Revenue Sources
Unum Group generates revenue through various segments, primarily focused on insurance products and services. As of September 30, 2024, the company's total revenue was $9,650.7 million, an increase from $9,240.8 million in the same period of 2023.
| Segment | Premium Income (2024) | Net Investment Income (2024) | Other Income (2024) | Total Revenue (2024) |
|---|---|---|---|---|
| Unum US | $5,161.8 million | $476.1 million | $178.9 million | $5,816.8 million |
| Unum International | $707.1 million | $94.5 million | $1.2 million | $802.8 million |
| Colonial Life | $1,335.0 million | $119.4 million | $3.6 million | $1,458.0 million |
| Closed Block | $662.4 million | $851.6 million | $37.7 million | $1,551.7 million |
| Corporate | - | $44.8 million | $1.1 million | $45.9 million |
| Total | $7,866.3 million | $1,586.4 million | $222.5 million | $9,675.2 million |
Insurance Products
Unum Group offers a range of insurance products, including:
- Group Disability Insurance
- Group Life Insurance
- Voluntary Benefits
- Individual Disability Insurance
As of September 30, 2024, the breakdown of gross premiums or assessments recognized was:
| Product Line | Gross Premiums (2024) |
|---|---|
| Group Disability | $2,294.8 million |
| Group Life and AD&D | $1,496.3 million |
| Voluntary Benefits | $621.3 million |
| Individual Disability | $494.2 million |
| Total | $4,906.6 million |
Investment Income
Net investment income plays a significant role in Unum Group's revenue. For the first nine months of 2024, the net investment income was $1,586.4 million, compared to $1,565.9 million in 2023. The earned book yield on the investment portfolio was 4.41% for the first nine months of 2024.
Adjusted Operating Income
Unum Group's adjusted operating income for the nine months ended September 30, 2024, was $1,106.0 million, compared to $1,013.4 million in 2023. This reflects a growth driven by increased premium income and favorable benefits experience.
| Period | Adjusted Operating Income (in millions) | Adjusted Operating Income per Share |
|---|---|---|
| Q3 2024 | $363.3 million | $2.13 |
| Q3 2023 | $357.8 million | $1.94 |
| 9M 2024 | $1,106.0 million | $6.41 |
| 9M 2023 | $1,013.4 million | $5.87 |
Expense Management
Unum Group manages its expenses through careful monitoring of policy benefits, commissions, and other operational costs. The total benefits and expenses for the first nine months of 2024 were $7,844.9 million, with a focus on maintaining favorable benefit ratios.
| Expense Category | Amount (in millions) |
|---|---|
| Policy Benefits | $5,624.2 million |
| Commissions | $947.8 million |
| Other Expenses | $903.3 million |
| Total Benefits and Expenses | $7,844.9 million |
Future Projections
Unum Group's liability for future policy benefits was $39,444.5 million as of September 30, 2024. The company anticipates future gross premiums and benefits payments impacting overall profitability.
| Future Estimates | Amount (in millions) |
|---|---|
| Expected Future Benefit Payments | $104,039.1 million |
| Expected Future Gross Premiums | $39,394.1 million |
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Article updated on 8 Nov 2024
Resources:
- Unum Group (UNM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Unum Group (UNM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Unum Group (UNM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.