NYSE$UNM

Unum Group · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Unum Group reported first quarter 2021 results, reflecting continued elevated mortality and encouraging trends in premium growth.

Unum Group reported a net income of $153.0 million for Q1 2021, with an after-tax adjusted operating income of $212.0 million. The results were influenced by elevated mortality and positive trends in premium growth and macroeconomic conditions.

  • Net income for Q1 2021 was $153.0 million ($0.75 per diluted common share); after-tax adjusted operating income was $212.0 million ($1.04 per diluted common share).
  • Results reflect continued elevated mortality, which improved through the quarter, as well as encouraging trends in premium growth, persistency, and macro-economic conditions.
  • Strong balance sheet and liquidity with holding company cash of $1.7 billion and weighted average risk-based capital ratio of approximately 370 percent; successful completion of the second phase of the Closed Block individual disability reinsurance transaction.
  • Book value per common share of $51.77 grew 7.4 percent over the year-ago quarter.

Headline financials

Total Revenue

$3.07B

Previous: $2.87B+7.0%
EPS (adj)

$1.04

Previous: $1.35-23.0%
Shares Outstanding

204.2M

No prior period
Book Value / Share

$51.77

No prior period
RBC Ratio

370.0%

Previous: 365.0%+1.4%
Capital Expenditures

-$30.9M

Previous: -$39.1M+21.0%
Free Cash Flow

$122M

Previous: $122M+0.2%
Net Income

$153M

Previous: $161M-5.0%
Operating Income

$350M

Previous: $323M+8.3%
Gross Profit

$854M

Previous: $838M+2.0%
Cash & Equivalents

$562M

Previous: $337M+66.6%
Total Assets

$69.3B

Previous: $65.3B+6.0%

Revenue & EPS history

Unum · Revenue · Quarterly

$3.07B

Q1 2021+7%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Unum · $2.38B total across 4 segments · Q1 2021

  • Unum US
    $1.53B-0.1%
  • Colonial Life
    $426M-1.9%
  • Closed Block
    $252M
  • Unum International
    $174M+6.0%

Forward guidance

The Company expects a modest decline in after-tax adjusted operating income per share for full-year 2021 compared to full-year 2020. The Company also anticipates a strong recovery in after-tax adjusted operating income per share in the second half of 2021 as the expected impacts of the COVID-19 pandemic subside.

Tailwinds

  • Strong recovery in after-tax adjusted operating income per share in the second half of 2021
  • Expected impacts of the COVID-19 pandemic subside
  • Market leadership
  • Financial underpinnings
  • Drive growth as the recovery builds in the second half of the year

Headwinds

  • Modest decline in after-tax adjusted operating income per share for full-year 2021 compared to full-year 2020.
  • Impact of the COVID-19 pandemic
  • Sustained periods of low interest rates
  • Fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets
  • Unfavorable economic or business conditions, both domestic and foreign, that may result in decreases in sales, premiums, or persistency, as well as unfavorable claims activity

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.0%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+2.1%

Avg return

30 days after

53%

38 / 72 earnings

Positive

+12.6%

Q2 2022

Best reaction

-17.8%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%+3.0%+7.0%
Q4 2025-1.5%-5.6%-2.8%
Q3 2025+7.3%+7.2%+0.6%
Q1 2025-2.0%-0.7%+3.1%
Q4 2024+2.3%+0.8%+4.1%
Q3 2024+4.1%+3.7%+24.6%
Q2 2024+7.5%+0.7%+3.3%
Q1 2024+1.7%+1.2%+3.9%
Q4 2023+2.9%+0.7%+5.2%
Q3 2023-12.9%-10.6%-11.8%
Q2 2023+1.2%+3.5%+1.2%
Q1 2023+4.9%+5.6%+3.9%
Q4 2022+5.4%+1.1%+9.4%
Q3 2022-1.5%-1.0%-8.0%
Q2 2022+12.6%+12.5%+18.8%
Q1 2022+12.2%+9.0%+12.1%
Q4 2021+1.5%+6.9%+12.6%
Q3 2021-0.0%+0.4%-12.3%
Q2 2021-8.7%-2.1%-2.5%
Q1 2021+4.4%+5.4%+9.2%
Q4 2020-3.0%-0.8%+19.7%
Q3 2020-13.9%-8.2%+20.5%
Q2 2020+0.5%-4.8%+4.1%
Q1 2020-8.0%-5.9%+2.2%
Q4 2019+11.8%+9.0%-20.3%
Q3 2019-4.0%+0.1%+7.2%
Q2 2019-1.7%-8.6%-21.8%
Q1 2019-1.7%-0.4%-11.8%
Q4 2018+5.1%+0.9%+3.8%
Q3 2018-3.7%-3.8%-2.1%
Q2 2018+2.4%-6.1%-6.4%
Q1 2018-17.8%-17.6%-19.8%
Q4 2017-0.7%-6.0%-8.4%
Q3 2017+0.2%-0.8%+2.4%
Q2 2017+3.3%+4.3%+0.7%
Q1 2017-0.6%-1.1%-4.4%
Q4 2016+1.0%+3.4%+8.0%
Q3 2016+2.6%+0.3%+21.6%
Q2 2016+2.7%+1.0%+6.3%
Q1 2016+1.0%
Q4 2015-5.7%
Q3 2015+5.0%
Q2 2015-2.0%
Q1 2015+1.1%
Q4 2014+1.4%
Q3 2014-3.3%
Q2 2014-0.8%
Q1 2014+2.8%
Q4 2013+3.6%
Q3 2013+3.4%
Q2 2013-5.0%
Q1 2013-1.3%
Q4 2011-1.1%
Q4 2009-1.1%
Q4 2010-1.1%
Q4 2012+4.0%
Q3 2012+0.5%
Q2 2012-1.0%
Q1 2012-3.6%
Q3 2011-3.9%
Q2 2011-2.1%
Q1 2011-0.1%
Q3 2010+0.4%
Q2 2010-3.7%
Q1 2009-3.9%
Q1 2010+1.8%
Q4 2007+2.6%
Q3 2009-4.9%
Q3 2008-4.9%
Q2 2008+0.9%
Q4 2008+0.9%
Q2 2009+0.9%

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