Unum Group Q2 revenue eases past estimates on premium growth

Overview

• US workplace benefits provider's Q2 revenue beat analyst expectations

• Premium growth was 3.6% on constant currency basis

• Company repurchased about $200 mln of shares in Q2

Outlook

• Unum Group sees full-year 2026 after-tax adjusted operating income per share of $8.60-$8.90

• Company expects to close long-term care reinsurance transaction in second half of 2026

Result Drivers

• PREMIUM GROWTH - Premium income rose 3.6% on a constant currency basis, supported by increased sales and higher persistency in core operations

• SEGMENT VARIATION - Unum US and Colonial Life segments saw higher operating income, while Unum International and Closed Block segments reported declines due to higher benefit ratios and lower investment income

Company press release: ID:nBw4vgZ4ma

Key Details

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 "buy"

• Wall Street's median 12-month price target for Unum Group is $100.00, about 15.7% above its July 27 closing price of $86.42

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 27 - Principal Financial profit rises on higher premiums, strength in retirement business

• July 28 - Arch Capital Q2 net income falls as premiums decline

• July 27 - Cincinnati Financial's quarterly profit falls on higher catastrophe losses

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.)