Unum Group’s Earnings Call for the Third Quarter Ending September 30, 2024, took place on October 30, 2024. The conference, moderated by Mark, the operator, featured prepared remarks followed by a Q&A session. Matt Royal, Senior Vice President and Head of Investor Relations and Treasury, initiated the call, highlighting the inclusion of forward-looking statements and cautioning that actual results may differ. He emphasized that references to core operations, sales, and premiums are presented on a constant currency basis.
Rick McKenney, President and CEO of Unum Group, expressed satisfaction with the company’s growth trajectory in 2024, aiming for an EPS growth of 10 to 15% for the year, which surpasses initial expectations. The adjusted EPS reached $2.13 per share, and statutory earnings exceeded $300 million for the quarter, accumulating over $1 billion for the year. The company reported a 4.6% increase in core operations premium growth, with persistency remaining high despite a decrease in sales compared to the previous year. McKenney conveyed optimism for the upcoming fourth quarter, the largest sales period, expecting continued growth in the U.S. and sustained sales in the UK, while Colonial Life is anticipated to remain flat. The focus on employee benefits was cited as a competitive advantage, with significant improvements in processes benefiting clients.
Steve Zabel, Chief Financial Officer, provided a detailed breakdown of financial performance, noting a 4.3% increase in after-tax adjusted operating earnings from the previous year. He attributed this to improved benefit ratios and strong return metrics across various lines. The company also undertook actions to bolster its balance sheet, including strengthening reserves for long-term care. A decision was made to dissolve the precapitalized trust facility, with proceeds allocated for additional share repurchases, boosting the total repurchase for 2024 to approximately $1 billion. Unum Group maintained a robust capital position, generating significant free cash flow and achieving a holding company liquidity of $1.4 billion.
The Q&A session addressed various topics, including actuarial reviews, cash flow and liquidity dynamics, sales challenges, and risk transfer discussions. Unum Group expressed confidence in sustaining favorable recovery trends in group disability and emphasized ongoing efforts to improve sales performance in Colonial Life. The company remained committed to strategic capital deployment, including both organic and inorganic investments, dividends, and share repurchases.
Overall, Unum Group’s third-quarter performance showcased strong financial results and strategic positioning, with a continued focus on achieving growth targets and maintaining a resilient business model.