Unum Group (UNM) AI Stock Analysis

• Market Cap: $11.90B
• Dividend Yield: 2.46%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.49
• Revenue Growth: 1.69%
• EPS Growth: 22.65%
• Country: US
• Employees: 10,833
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Life
• EPS (TTM): 2.07
• Shares Outstanding: 170,313,230
• 10 Day Avg. Volume: 977,748
• 30 Day Avg. Volume: 1,505,980
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: 8.06
• 1Y Price Target: $95.09
• Price Target Upside: 36.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: $79.00 ▲(13.08% Upside)

Unum Group's overall stock score reflects strong financial performance and attractive valuation, tempered by bearish technical indicators and mixed earnings call results. The company's robust cash flow and strategic initiatives support long-term growth, but short-term operational challenges and market momentum present risks.

Positive Factors

Capital Management

Internal long-term care reinsurance deal freed up $600M-plus of capital, offering diversification benefits and reducing volatility.

Reinsurance Strategy

Unum announced a transaction to reinsure $3.4bn of statutory long-term care reserves with Fortitude Re, which is viewed as a positive step in management’s goal to de-risk the business.

Risk Management

Unum's recent long-term care deal gives confidence that the company can further derisk its insurance block.

Negative Factors

Earnings Performance

UNM shares traded down owing to the earnings miss and weaker disability results in the quarter.

Growth Outlook

UNM lowered its 2025 EPS growth outlook to 6-10% and lowered its core premium growth expectation to 3-6%.

Sales Growth

Management attributed the poor sales growth to plans remaining with incumbent carriers and noted that premium growth will be more a function of strong persistency rather than new sales growth.

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 sale of insurance premiums from its various products, including group and individual disability insurance, life insurance, and other supplemental insurance offerings. The company collects premiums from policyholders, which constitute a significant portion of its income. Additionally, Unum earns investment income from its portfolio of invested assets, which includes stocks, bonds, and other financial instruments. The company also benefits from strategic partnerships with employers, enabling it to offer its products as part of employee benefits packages, thereby expanding its customer base. Furthermore, effective risk management practices and underwriting processes help maintain profitability by controlling claims costs.

Unum Group Financial Statement Overview

Summary

Unum Group exhibits strong financial performance with impressive revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is robust. However, operational efficiency as indicated by the negative EBIT margin in the TTM period needs attention.

Income Statement

Unum Group has demonstrated strong revenue growth with a TTM increase of 99.8%, indicating robust business expansion. The gross profit margin is high at 84.23% for TTM, showcasing effective cost management. However, the EBIT margin is negative in the TTM period, reflecting operational challenges. Net profit margin remains healthy at 11.80% for TTM, but slightly lower than the previous annual report. Overall, the income statement reflects strong revenue growth and profitability, though operational efficiency needs improvement.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.33 in the TTM period, indicating a balanced approach to leverage. Return on equity is solid at 13.67% for TTM, reflecting effective use of shareholder funds. The equity ratio stands at 18.01%, suggesting a stable capital structure. While the balance sheet shows financial stability, the equity ratio indicates potential room for strengthening equity base.

Cash Flow

Unum Group's cash flow performance is strong, with a significant free cash flow growth rate of 60.6% in the TTM period. The operating cash flow to net income ratio is robust at 2.94, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is high at 91.54%, demonstrating effective conversion of profits into cash. Overall, the cash flow statement reflects strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.88B	12.89B	12.39B	11.99B	12.01B	13.16B
Gross Profit	10.85B	12.89B	12.39B	11.52B	11.80B	13.16B
EBITDA	2.21B	2.45B	1.94B	2.05B	1.57B	1.27B
Net Income	1.52B	1.78B	1.28B	1.41B	981.00M	793.00M
Balance Sheet
Total Assets	62.84B	61.96B	63.26B	61.43B	70.12B	70.63B
Cash, Cash Equivalents and Short-Term Investments	39.45B	1.40B	146.00M	1.51B	1.46B	1.67B
Total Debt	3.74B	3.74B	3.43B	3.43B	3.44B	3.35B
Total Liabilities	51.52B	51.00B	53.60B	52.24B	58.70B	59.75B
Stockholders Equity	11.32B	10.96B	9.65B	9.20B	11.42B	10.87B
Cash Flow
Free Cash Flow	1.44B	1.39B	1.07B	1.32B	1.28B	478.40M
Operating Cash Flow	1.58B	1.51B	1.20B	1.42B	1.39B	597.50M
Investing Cash Flow	889.70M	-344.40M	-725.90M	-955.90M	-1.34B	-267.70M
Financing Cash Flow	-1.41B	-1.15B	-450.10M	-418.60M	-168.90M	-216.90M

Unum Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.86
• 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 Neutral. The current price of 69.86 is above the 20-day moving average (MA) of 69.63, below the 50-day MA of 75.31, and below the 200-day MA of 75.89, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 41.30 is Neutral, neither overbought nor oversold. The STOCH value of 51.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UNM.

Unum Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	80 Outperform	$4.65B	14.12	8.40%	2.52%	1.78%	0.77%
GL	78 Outperform	$11.34B	11.18	20.02%	0.73%	4.02%	13.01%
LNC	71 Outperform	$8.14B	7.49	12.97%	4.19%	11.33%	-38.17%
PRI	71 Outperform	$8.72B	13.34	31.95%	1.49%	5.70%	61.69%
UNM	69 Neutral	$11.90B	8.36	13.95%	2.46%	1.69%	22.65%
Sector *	68 Neutral	$17.90B	11.86	10.29%	3.72%	9.74%	1.66%
JXN	63 Neutral	$6.88B	82.50	0.30%	3.04%	27.18%	-100.02%

Unum Group Corporate Events

Unum Group Completes Major Transaction with Fortitude Re

On July 1, 2025, Unum Group announced the completion of a significant transaction with Fortitude Reinsurance Company Ltd., as outlined in their Master Transaction Agreement from February 26, 2025. This transaction involved Unum Life Insurance Company of America ceding a 100% quota share of its closed block individual long-term care business and individual disability business to Fortitude Reinsurance, impacting $3.4 billion in statutory reserves and $120 million of in-force premium respectively, effective January 1, 2025.

Unum Group Holds Annual Shareholders Meeting, Elects Directors

On May 22, 2025, Unum Group held its Annual Meeting of Shareholders, where key decisions were made. Shareholders elected eleven directors for one-year terms, approved executive compensation, ratified Ernst & Young LLP as the independent auditor for 2025, and endorsed the Unum European Holding Company Limited SAYE Share Option Scheme 2025. These decisions reflect continued shareholder support for the company’s leadership and strategic initiatives, potentially strengthening its market position and operational stability.

Unum Group Increases Quarterly Dividend by 10%

On May 22, 2025, Unum Group announced that its Board of Directors has authorized a 10% increase in the quarterly dividend on its common stock, setting the new rate at 46 cents per share, effective in the third quarter of 2025. This decision reflects the company’s strong financial performance and commitment to delivering value to its shareholders, potentially enhancing its market position and stakeholder confidence.