Unum Group UNM is slated to report fourth-quarter 2022 earnings on Jan 31, after market shut. The insurer delivered an earnings shock in every of the final 4 quarters, the common being 34.9%.
Elements to Observe
The Unum U.S. section is prone to have benefited from favorable advantages expertise in group product strains and better premium earnings, partially offset by larger working bills and decrease internet funding earnings. The Zacks Consensus Estimate for fourth-quarter premium earnings on the Unum U.S. section is pegged at $1.6 billion, implying an enchancment of three.5% from the prior-year reported determine.
Favorable advantages expertise, larger premium earnings, in-force block progress and better gross sales are prone to have favored efficiency at Colonial Life. The upside is prone to be partially offset by larger working bills and decrease internet funding earnings. The Zacks Consensus Estimate for fourth-quarter premium earnings on the Colonial Life section stands at $434 million, indicating a rise of two.6% from the prior-year degree.
Development within the in-force block, ensuing from the influence of fee will increase within the group long-term incapacity product line and better persistency are prone to have benefited Unum Worldwide within the to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter premium earnings on the Unum Worldwide section stands at $173 million.
Decline within the yield on invested belongings and decrease miscellaneous funding earnings are prone to have weighed on internet funding earnings. This draw back might have been partially offset by larger degree of invested belongings and better funding earnings from inflation index-linked bonds held by Unum UK. The Zacks Consensus Estimate for a similar is pegged at $517 million, indicating a 6.2% decline from the prior-year quarter. We count on internet funding earnings to be $519.6 million.
Bills are prone to have elevated due to larger commissions, curiosity and debt expense, amortization of deferred acquisition prices and compensation expense. We count on whole advantages and bills to be $2.6 billion.
A continued share buyback is prone to have offered a lift to the underside line.
The Zacks Consensus Estimate for earnings per share is pegged at $1.46, indicating a rise of 64% from the year-ago reported determine. Our estimate for fourth-quarter EPS is $1.43.
Quantitative Mannequin Prediction
Our confirmed mannequin doesn’t conclusively predict an earnings beat for Unum Group this time round. The mixture of a constructive Earnings ESP and a Zacks Rank #1 (Sturdy Purchase), 2 (Purchase), or 3 (Maintain) will increase the possibilities of an earnings beat. This isn’t the case as you’ll be able to see beneath.
Earnings ESP: It has an Earnings ESP of -0.06%. You possibly can uncover the very best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Unum Group Value and EPS Shock
Unum Group price-eps-surprise | Unum Group Quote
Zacks Rank: Unum Group at the moment carries a Zacks Rank #2. You possibly can see the complete list of today’s Zacks #1 Rank stocks here.
Shares to Think about
Some insurance coverage shares with the suitable mixture of components to ship an earnings beat this time round are:
Arch Capital Group Ltd. ACGL has an Earnings ESP of +5.42% and a Zacks Rank of three. The Zacks Consensus Estimate for Arch Capital’s fourth-quarter 2022 earnings is pegged at $1.34 per share, indicating a rise of 5.5% from the year-ago reported determine.
ACGL’s earnings beat estimates in three of the final 4 quarters and missed within the different one.
NMI Holdings Inc. NMIH has an Earnings ESP of +2.33% and a Zacks Rank of three. The Zacks Consensus Estimate for NMI Holdings’ fourth-quarter 2022 earnings is pegged at 86 cents per share, indicating a rise of 17.8% from the year-ago reported determine.
NMIH’s earnings beat estimates in every of the 4 trailing quarters.
Everest Re Group, Ltd. RE has an Earnings ESP of +5.61% and a Zacks Rank of three. The Zacks Consensus Estimate for Everest Re’s fourth-quarter 2022 earnings is pegged at $9.29 per share, indicating a rise of 1.9% from the year-ago reported determine.
RE’s earnings beat estimates in three of the final 4 quarters and missed within the different one.
Keep on high of upcoming earnings bulletins with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
