Shares of Unum (UNM) tumbled 6.99% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report, which fell short of analysts' expectations. The insurance company's financial results revealed a mixed performance, with revenue slightly missing estimates and earnings per share (EPS) coming in significantly below projections.

Unum reported revenue of $3.3 billion for the quarter ended March 2025, representing a 3% year-over-year increase. However, this figure fell short of the Zacks Consensus Estimate of $3.33 billion, resulting in a negative surprise of 1.05%. More notably, the company's EPS of $2.04 for the same period was considerably lower than the consensus estimate of $2.19, marking a substantial -6.85% surprise. This earnings miss appears to be the primary driver behind the stock's pre-market plunge.

Despite the overall disappointing results, Unum did show some positive metrics in its report. The company's benefit ratio for its US Group Life and Accidental Death & Dismemberment segment came in at 69.3%, slightly better than the analyst estimate of 69.5%. Additionally, the Colonial Life segment's benefit ratio of 47.7% outperformed the expected 48.9%. However, these bright spots were overshadowed by underperformance in other areas, such as higher-than-expected expense ratios in some segments and lower net investment income in key divisions. As investors digest these mixed results, the pre-market stock plunge suggests a cautious outlook on Unum's near-term performance and growth prospects.