Unum (UNM) shares plunged 7.41% in pre-market trading on Wednesday, as investors reacted to the company's disappointing first-quarter 2025 earnings report. The insurance provider's financial results, released prior to the market open, fell short of analysts' expectations, triggering a significant sell-off.

The earnings report revealed a mixed performance for Unum, with both revenue and earnings per share (EPS) missing estimates. The company reported revenue of $3.3 billion for the quarter ended March 2025, representing a 3% year-over-year increase but falling short of the Zacks Consensus Estimate of $3.33 billion. More critically, Unum's EPS of $2.04 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 decline.

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 analyst estimates. Additionally, the Colonial Life segment's benefit ratio of 47.7% outperformed expectations. 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 the market digests these mixed results, the pre-market stock plunge suggests a cautious outlook on Unum's near-term performance and growth prospects.