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Unum Group (UNM) to Report Q1 Earnings: What's in Store?
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Unum Group (UNM - Free Report) is slated to report first-quarter 2022 earnings on May 5, after market close. The company delivered an earnings surprise of 8.5% in the last-reported quarter.
Factors to Note
The Unum U.S. segment is likely to have benefited from higher premium levels in the short-term disability product line, higher natural growth in the in-force block and favorable persistency, growth in the dental and vision product line. The upside is likely to have been offset by declines in the voluntary benefits and individual disability product lines. The Zacks Consensus Estimate for first-quarter premium income at the Unum U.S. segment is pegged at $1.6 billion, suggesting an improvement of 2.3% from the prior-year reported figure.
Colonial Life is likely to have been aided by higher overall persistency, higher current year sales and favorable incidence in all the product lines. The Zacks Consensus Estimate for first-quarter premium income at the Colonial Life segment stands at $436 million, indicating an increase of 2.3% from the prior-year level.
Unum International is likely to have been aided by growth in the in-force block, resulting from the impact of rate increases in the group long-term disability product line and higher overall persistency. The Zacks Consensus Estimate for first-quarter premium income at the Unum International segment stands at $178 million.
A decline in the level of invested assets supporting the Closed Block individual disability product line and a decrease in the yield on invested assets are likely to have weighed on net investment income. This downside may have been partially offset by higher miscellaneous investment income, related to private equity partnerships. The Zacks Consensus Estimate for the same is pegged at $540 million, indicating a 1.6% decline from the prior-year quarter.
Expenses are likely to have decreased due to lower benefits and change in reserves for future benefits, partially offset by higher interest and debt expense, amortization of deferred acquisition costs and other expenses. Continued share buyback is likely to have provided a boost to the bottom line.
For the LTC and closed disability lines, Unum Group estimates quarterly adjusted operating income within the range of $45 million to $55 million assuming more normal trends for investment income and claim results in the to-be-reported quarter.
The Zacks Consensus Estimate for earnings per share is pegged at 81 cents, indicating a decline of 22.1% from the year-ago reported figure.
Quantitative Model Prediction
Our proven model does not conclusively predict an earnings beat for Unum Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case as you can see below.
Earnings ESP: It has an Earnings ESP of -2.83%. This is because the Most Accurate Estimate is pegged at 78 cents, lower than the Zacks Consensus Estimate of 81 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some stocks from the insurance space that have the perfect mix of elements to surpass earnings estimates in the upcoming quarterly releases are as follows:
Horace Mann Educators Corporation (HMN - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 94 cents, indicating a decrease of 14.5% from the year-ago reported figure.
HMN’s earnings beat estimates in each of the four trailing quarters of 2021.
Lemonade, Inc. (LMND - Free Report) has an Earnings ESP of +2.66% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at a loss $1.43, indicating a decrease of 76.5% from the year-ago reported figure.
LMND delivered a negative surprise in the last-reported quarter.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four trailing quarters of 2021.
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Unum Group (UNM) to Report Q1 Earnings: What's in Store?
Unum Group (UNM - Free Report) is slated to report first-quarter 2022 earnings on May 5, after market close. The company delivered an earnings surprise of 8.5% in the last-reported quarter.
Factors to Note
The Unum U.S. segment is likely to have benefited from higher premium levels in the short-term disability product line, higher natural growth in the in-force block and favorable persistency, growth in the dental and vision product line. The upside is likely to have been offset by declines in the voluntary benefits and individual disability product lines. The Zacks Consensus Estimate for first-quarter premium income at the Unum U.S. segment is pegged at $1.6 billion, suggesting an improvement of 2.3% from the prior-year reported figure.
Colonial Life is likely to have been aided by higher overall persistency, higher current year sales and favorable incidence in all the product lines. The Zacks Consensus Estimate for first-quarter premium income at the Colonial Life segment stands at $436 million, indicating an increase of 2.3% from the prior-year level.
Unum International is likely to have been aided by growth in the in-force block, resulting from the impact of rate increases in the group long-term disability product line and higher overall persistency. The Zacks Consensus Estimate for first-quarter premium income at the Unum International segment stands at $178 million.
A decline in the level of invested assets supporting the Closed Block individual disability product line and a decrease in the yield on invested assets are likely to have weighed on net investment income. This downside may have been partially offset by higher miscellaneous investment income, related to private equity partnerships. The Zacks Consensus Estimate for the same is pegged at $540 million, indicating a 1.6% decline from the prior-year quarter.
Expenses are likely to have decreased due to lower benefits and change in reserves for future benefits, partially offset by higher interest and debt expense, amortization of deferred acquisition costs and other expenses.
Continued share buyback is likely to have provided a boost to the bottom line.
For the LTC and closed disability lines, Unum Group estimates quarterly adjusted operating income within the range of $45 million to $55 million assuming more normal trends for investment income and claim results in the to-be-reported quarter.
The Zacks Consensus Estimate for earnings per share is pegged at 81 cents, indicating a decline of 22.1% from the year-ago reported figure.
Quantitative Model Prediction
Our proven model does not conclusively predict an earnings beat for Unum Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case as you can see below.
Earnings ESP: It has an Earnings ESP of -2.83%. This is because the Most Accurate Estimate is pegged at 78 cents, lower than the Zacks Consensus Estimate of 81 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Unum Group Price and EPS Surprise
Unum Group price-eps-surprise | Unum Group Quote
Zacks Rank: Unum Group currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks from the insurance space that have the perfect mix of elements to surpass earnings estimates in the upcoming quarterly releases are as follows:
Horace Mann Educators Corporation (HMN - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 94 cents, indicating a decrease of 14.5% from the year-ago reported figure.
HMN’s earnings beat estimates in each of the four trailing quarters of 2021.
Lemonade, Inc. (LMND - Free Report) has an Earnings ESP of +2.66% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at a loss $1.43, indicating a decrease of 76.5% from the year-ago reported figure.
LMND delivered a negative surprise in the last-reported quarter.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four trailing quarters of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.