Unum Group’s third quarter was marked by continued growth in its core businesses, underpinned by strong premium increases, high persistency, and disciplined risk selection. Management identified healthy group disability and group life segments, both showing solid earnings power, and highlighted robust premium growth across Unum US, Colonial Life, and International. CEO Rick McKenney attributed the company’s healthy margins to “continued discipline in pricing and risk selection.” The quarter’s non-GAAP profit was impacted by volatility in the Closed Block segment, particularly long-term care, but management emphasized that core operations delivered consistent performance and capital generation.

Is now the time to buy UNM? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Unum Group’s Q3 Earnings Call

• Ryan Krueger (KBW) asked about the statutory impacts of the LTC assumption review. CFO Steve Zabel explained the changes would have minimal effect on capital plans and that protections in Fairwind remain strong.
• Thomas Gallagher (Evercore ISI) questioned the rationale behind large reserve adjustments and rate increases. Zabel clarified that changes reflected both recent experience and prudence, aiming to derisk assumptions and maintain regulatory support.
• Elyse Greenspan (Wells Fargo) inquired about the potential for additional LTC risk transfer deals. CEO Rick McKenney said the actions taken should make future transactions simpler and noted ongoing constructive market discussions.
• Francis Matten (BMO Capital Markets) asked about capital deployment and the sustainability of premium growth. McKenney described a capital allocation strategy prioritizing core business investment, M&A for capabilities, and increased shareholder returns.
• Wilma Jackson Burdis (Raymond James) sought clarification on Closed Block reporting and the impact of assumption changes. Zabel emphasized that the recent review reduces future risk and enhances cash generation through premium rate actions.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will track (1) execution of further risk transfer initiatives for the long-term care block, (2) continued adoption and impact of digital platforms like HR Connect and Total Leave on premium growth and retention, and (3) the pace of capital deployment into core business growth and shareholder returns. Developments in regulatory approvals for premium rate increases and progress in international markets will also be closely monitored.

Unum Group currently trades at $78.15, up from $72.97 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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