Unum Group (UNM, Financial) released its Q3 2023 earnings report on October 31, 2023. The company reported a net income of $202.0 million ($1.02 per diluted common share), compared to a net income of $510.3 million ($2.53 per diluted common share) for the third quarter of 2022. The company's after-tax adjusted operating income was $381.7 million ($1.94 per diluted common share).
Financial Performance
Unum Group (UNM, Financial) reported strong execution, positive underlying trends, and a favorable environment highlighted by robust disability margins. The company's core operations premium growth was 6.1 percent on a constant currency basis. The company's balance sheet remained strong with holding company liquidity of $1.2 billion and a weighted average risk-based capital ratio of approximately 470 percent, well in excess of targets.
Capital and Share Repurchase
Unum Group (UNM, Financial) contributed capital at levels expected to fully recognize the long-term care premium deficiency reserve by year-end. The company also announced a new share repurchase authorization of $500 million beginning January 1, 2024.
Book Value
The company's book value per common share of $49.32 grew 16.9 percent over the year-ago quarter. The book value per common share excluding accumulated other comprehensive income (AOCI) of $65.47 grew 8.5 percent over the year-ago quarter.
Commentary
“Our strong performance reflected excellent execution across the enterprise, with very strong top-line growth and profitability,” said Richard P. McKenney, president and chief executive officer. “Our technology initiatives continue to differentiate Unum and amplify our growth by providing customers what they want, high-quality, digital-first experiences. We are operating from a position of financial strength and making progress on de-risking our balance sheet while also increasing capital returns to shareholders. As we approach the end of 2023, our capital deployment plans are on track and will accelerate in 2024, market conditions remain favorable, and we believe we are well positioned to achieve our earnings growth objectives and maintain capital metrics well in excess of our targets.”
Outlook
Unum Group (UNM, Financial) expects a full-year 2023 increase in after-tax adjusted operating income per share of 20 percent to 25 percent when comparing to historically reported 2022 results.
Explore the complete 8-K earnings release (here) from Unum Group for further details.
