Unum Group (UNM) AI Stock Analysis

• Market Cap: $11.88B
• Dividend Yield: 2.22%
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.67
• Revenue Growth: 1.80%
• EPS Growth: -44.44%
• Country: US
• Employees: 10,833
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 1.92
• Shares Outstanding: 163,753,810
• 10 Day Avg. Volume: 2,790,238
• 30 Day Avg. Volume: 1,955,714
• PEG Ratio: -0.33
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 24.07
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 12.55
• 1Y Price Target: $94.86
• Price Target Upside: 30.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 8.75
• Revenue Forecast (FY): $12.58B

• Rating: 65 Neutral
• Price Target: $80.00 ▲(10.31% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

UNM scores mid-range primarily due to 2025 earnings and cash-flow weakening despite a resilient balance sheet, partially offset by a cautiously positive 2026 outlook and strong capital/return-of-capital plans. Technicals are not providing strong confirmation, and valuation is reasonable but not compelling enough to outweigh the recent profitability volatility.

Positive Factors

Very strong regulatory capital and holding-company liquidity

Unum’s very strong RBC (~440%) and multi-billion dollar holdco cash provide durable financial flexibility to absorb underwriting volatility, fund de‑risking, and sustain buybacks/dividends. High capital and liquidity materially reduce solvency and refinancing risk over the medium term.

High returns on core operations and targeted ROE improvement

Sustained mid‑teens to mid‑20s ROE on core operations indicates a structurally profitable franchise and disciplined underwriting. High core ROE supports internal capital generation and shareholder returns, improving resilience versus peers and enabling reinvestment in products and distribution.

Durable distribution, high persistency, and rising digital engagement

Strong broker/employer distribution, high ~90% persistency and digital adoption underpin recurring premium streams and lower lapse-driven volatility. Better retention from digital channels enhances lifetime customer value and reduces acquisition expense, supporting stable top-line and margins long-term.

Negative Factors

2025 profitability and cash‑flow reset

A marked drop in net margin and a large fall in operating and free cash flow in 2025 reduce earnings predictability and constrain capital deployment if sustained. This volatility highlights sensitivity to claims and investment income and increases the risk that future FCF targets may be missed.

Elevated and volatile group disability benefit ratios

Group disability is a core, high‑margin line; persistent upward pressure and quarter‑to‑quarter swings in benefit ratios materially amplify underwriting volatility. Higher or unpredictable disability costs directly compress margins and can erode ROE even with strong capital cushions.

Remaining Closed‑Block/LTC legacy exposure despite de‑risking

Although reinsurance reduced LTC reserves, the block still generates volatile results and now sits below the line, which can mask operational impact and leave residual reserve and morbidity risk. Legacy LTC runoff and disclosure changes maintain a structural earnings uncertainty over the medium term.

Unum Group Business Overview & Revenue Model

Company Description

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, and Poland. It operates through Unum US, Unum International, Colonial Life, and Closed Block segments. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other products. The company sells its products primarily to employers for the benefit of employees. Unum Group sells its products through field sales personnel, independent brokers, consultants, and independent contractor agency sales force. The company was founded in 1848 and is based in Chattanooga, Tennessee.

How the Company Makes Money

Unum Group generates revenue primarily through the underwriting of insurance products. The company earns money by collecting premiums from policyholders in exchange for coverage. Key revenue streams include group long-term disability insurance, group life insurance, and supplemental health products. Unum also invests the premiums collected in various financial instruments, generating investment income. Additionally, the company benefits from partnerships with employers, providing tailored employee benefits packages that enhance employee retention and satisfaction. Factors such as the growth of the workforce, increasing awareness of the importance of disability and life insurance, and strong relationships with brokers and employers contribute to Unum's earnings.

Unum Group Financial Statement Overview

Summary

Balance sheet strength is solid (moderate leverage and sizable equity), but 2025 showed a sharp profitability reset (net margin down to 5.8% and net income down materially) alongside a notable step-down in operating cash flow and free cash flow versus 2024—highlighting earnings and cash-generation volatility.

Income Statement

Revenue has been broadly stable over the last several years (low-single-digit growth most years), but 2025 showed a slight decline (-1.7%) and a sharp profitability pullback. Net margin fell from 13.9% (2024) to 5.8% (2025) and net income dropped from $1.78B to $0.74B, signaling weaker underwriting/claims experience or higher expenses. Positively, 2020–2024 showed generally improving profitability versus earlier years, but the 2025 reset raises earnings volatility concerns.

Balance Sheet

Leverage looks contained for the period shown, with debt-to-equity staying in a fairly tight band (~0.31–0.39) and 2025 at 0.37. Equity remains sizable ($10.19B in 2025) relative to debt ($3.77B), supporting balance-sheet resilience. The main watch-out is the variability in returns on equity (from ~7% in 2020/2025 to ~16% in 2022/2024), which suggests profitability can swing even if leverage is stable.

Cash Flow

Cash generation was strong and well-aligned with earnings through 2024 (free cash flow ran at ~89%–93% of net income in 2022–2024, with operating cash flow comfortably above net income). In 2025, cash flow weakened materially: operating cash flow fell to $0.69B (from $1.51B) and free cash flow declined to $0.56B (from $1.39B), with free cash flow down ~19% year over year. While free cash flow still covered net income in 2025 (~81%), the step-down in cash generation is a key near-term risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.05B	12.79B	12.31B	11.88B	11.84B
Gross Profit	4.99B	4.74B	4.03B	3.93B	3.32B
EBITDA	1.27B	2.57B	1.94B	2.05B	1.57B
Net Income	738.50M	1.78B	1.28B	1.41B	981.00M
Balance Sheet
Total Assets	64.09B	62.35B	63.61B	61.53B	71.23B
Cash, Cash Equivalents and Short-Term Investments	158.20M	162.80M	146.00M	119.20M	75.00M
Total Debt	3.90B	3.86B	3.54B	3.43B	3.58B
Total Liabilities	52.98B	51.39B	53.96B	52.79B	59.81B
Stockholders Equity	11.12B	10.96B	9.65B	8.73B	11.42B
Cash Flow
Free Cash Flow	555.40M	1.39B	1.07B	1.32B	1.28B
Operating Cash Flow	687.70M	1.51B	1.20B	1.42B	1.39B
Investing Cash Flow	548.90M	-344.40M	-725.90M	-955.90M	-1.34B
Financing Cash Flow	-1.24B	-1.15B	-450.10M	-418.60M	-168.90M

Unum Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNM, the sentiment is Negative. The current price of 72.52 is below the 20-day moving average (MA) of 72.76, below the 50-day MA of 74.37, and below the 200-day MA of 75.11, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 51.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNM.

Unum Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GL	78 Outperform	$10.76B	9.74	20.64%	0.74%	3.73%	17.47%
PRI	74 Outperform	$7.77B	10.48	32.29%	1.59%	5.63%	67.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNM	65 Neutral	$11.88B	18.10	6.63%	2.22%	1.80%	-44.44%
FG	64 Neutral	$3.20B	15.25	5.75%	2.91%	-4.58%	―
LNC	63 Neutral	$6.43B	6.91	12.03%	3.93%	35.76%	636.97%
JXN	53 Neutral	$7.28B	276.83	0.26%	2.98%	24.94%	―

Unum Group Corporate Events

Unum Group Updates Bylaws to Modernize Corporate Governance

On March 4, 2026, Unum Group’s board approved a wide-ranging update of its bylaws, including modernized terminology such as replacing “Chairman” with “Chair” and clarifying that remote shareholder participation counts as in-person for voting purposes. The company also refined how votes are counted by limiting the denominator to shares present and entitled to vote on a specific matter, and added precise definitions for “business day” and “close of business.”

The revisions strengthen the board’s ability to manage shareholder proposals and director nominations by allowing pre-meeting determinations that proposals were not properly brought and by clarifying that supplemental information does not automatically cure deficient notices. Unum further streamlined governance by adjusting rules on director nominations, indemnification, uncertificated shares, obsolete technology references, and interested director transactions, signaling an effort to align its corporate governance framework with current practice and regulatory expectations.

The most recent analyst rating on (UNM) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.

Unum Group Reports Q4 2025 Results and 2026 Outlook

On February 5, 2026, Unum Group reported fourth-quarter 2025 net income of $174.1 million, down from $348.7 million a year earlier, while after-tax adjusted operating income reached $322.3 million, reflecting higher benefits expenses and several one-time items, including pension-related settlement losses and reinsurance amortization. For full-year 2025, the company delivered 3.7% core operations premium growth on a constant-currency basis and a 20.5% adjusted operating return on equity, supported by a strong balance sheet with $2.3 billion in holding company liquidity and a risk-based capital ratio of about 440%, enabling $1.3 billion in capital returns to shareholders and book value per share growth. Segment results were mixed, with Unum US adjusted operating income falling 13.1% as group disability earnings were pressured by higher benefit ratios and lower investment income, while group life and AD&D posted higher operating income on premium growth and improved claims experience, underscoring both the earnings sensitivity to claims trends and the resilience of the broader franchise. The company also published a 2026 outlook slide deck alongside these results and indicated that positive business trends are expected to continue, guiding to 4–7% core premium growth and higher adjusted operating earnings per share in 2026, signaling confidence in ongoing growth and value creation despite recent claims cost headwinds.

The most recent analyst rating on (UNM) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.