The company's 2026 outlook includes premium growth of 4% to 7% off a roughly $10 billion premium base, with earnings per share growth of 8% to 12%, supported by good margins. Digital investments are positioned as a key differentiator, with more than one-third of the core premium base tied to customers using leading digital capability. The company maintains a strong capital position with plans for ~100% of free cash flow (~$1.2–$1.4 billion) to shareholder returns through ~$1 billion of buybacks plus ~10% dividend increase in 2026.
Cyborg Score Rationale
2025 earnings came in below expectations largely due to higher-than-anticipated benefits experience across parts of the portfolio, though executives struck an upbeat tone on the company's growth outlook for 2026. The company demonstrates solid operational discipline with strong capital management and shareholder returns, but faces execution risks in managing claims experience and international operations.
Top Insights
2026 guidance includes premium growth of 4-7% and EPS growth of 8-12%, with company expecting to return ~100% of cash generation to shareholders via dividends and share repurchases
Capital return priorities include dividend raised 10% and stock repurchased $1B in 2025, with plans for another ~$1B buybacks and ~10% dividend increase in 2026
In 2025 reduced LTC reserves by $4+ billion through reinsurance transaction with Fortitude Re and discontinued new employee coverage on group LTC effective February 1, moving block to full runoff
International segment shows strong sales and persistency with 10% premium growth; Colonial Life posted 10% Q4 sales increase to $203.9M, largest quarterly sales since 2019
Named Competitors
MetLife Benefits — Comprehensive group benefits and insurance solutions
Prudential Group Insurance — Disability, life and supplemental benefits
Hartford Benefits — Group disability and life insurance
Principal Financial Group Benefits — Employee benefits and workplace solutions
Recent Developments
(February 2026) Reaffirmed 2026 growth targets with 100% capital return to shareholders; shifted Closed Block reporting below the line
(February 2026) Q4 2025 earnings released with 2026 EPS guidance of $8.60-$8.90 and premium growth outlook of 4-7%
(December 2025) Board authorized $1 billion share repurchase program
(January 2025) Acquired Generali's U.K. business and Beanstalk Benefits to enhance leave management services
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