Unum Group Reports Strong Q4 2024 Results and 2025 Outlook

Unum Group announces a solid performance in Q4 2024, showcasing a 10% EPS growth, exceeding expectations, and expects continued momentum into 2025. This positions the company favorably in the market amidst supportive economic conditions.

Date: 05-02-2025

AI Rating: 7

Key Financial Metrics
Unum Group has reported a 10% increase in earnings per share (EPS) for 2024, surpassing initial expectations of 7% to 9%. This growth in EPS indicates a strong performance, reflecting the company's resilience and operational efficiency. Additionally, the company has achieved a return on equity (ROE) exceeding 20%. The focus on shareholder returns is evident as the company raised dividends by 15% and executed share repurchases totaling approximately $1 billion in 2024.

Revenue Growth and Profitability
The company reported a consolidated sales growth of high single digits and premium growth expected in the range of 4% to 7%, maintaining a solid top-line growth trajectory. Unum's strong operational execution is evident as it also reported robust margins and a sustainable benefit ratio within expected ranges.

Outlook for 2025
Looking forward, Unum Group anticipates free cash flow between $1.3 billion to $1.6 billion, indicating strong operational cash generation capabilities. Management expressed confidence in maintaining disciplined pricing strategies while adapting to competitive pressures in the marketplace. The company expects earnings per share growth of 8% to 12% in 2025, bolstered by continuous investment in product innovation and customer engagement.

Overall, the indicators of solid growth in earnings, a strong return on equity, stable profitability, and positive cash flow generation create a favorable outlook for Unum Group. This strong performance is likely to have a positive impact on its stock prices as investor confidence grows and shareholder returns are prioritized.

Stocks: UNM