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Unum Group (UNM)
NYSE:UNM
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Unum Group
(NYSE:UNM)
Rating:69Neutral
Price Target:
$79.00
â–²(13.85% Upside)
Positive Factors
Capital Management
Internal long-term care reinsurance deal freed up $600M-plus of capital, offering diversification benefits and reducing volatility.
Financial Performance
Unum Group sees 2025 EPS growth of 8-12%, which is above analyst and consensus estimates.
Strategic Deals
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.
Negative Factors
Earnings
UNM shares traded down owing to the earnings miss and weaker disability results in the quarter.
Premium 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 (UNM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.82B
Dividend Yield2.48%
Average Volume (3M)1.53M
Price to Earnings (P/E)8.3
Beta (1Y)0.49
Revenue Growth1.69%
EPS Growth22.65%
CountryUS
Employees10,833
SectorFinancial
Sector Strength71
IndustryInsurance - Life
Share Statistics
EPS (TTM)2.07
Shares Outstanding170,313,230
10 Day Avg. Volume2,406,234
30 Day Avg. Volume1,534,160
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit1.99
Enterprise Value/Ebitda8.08
Forecast
1Y Price Target
$94.62Price Target Upside36.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Unum Group Business Overview & Revenue Model
Company DescriptionUnum Group (UNM) is a leading provider of financial protection benefits in the United States and the United Kingdom. The company operates primarily in the insurance sector, offering a range of products including disability insurance, life insurance, and supplemental health insurance. Unum's core services are designed to provide income protection for employees and their families during times of need, ensuring financial stability through various life events such as illness, injury, or death.
How the Company Makes MoneyUnum 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 Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: -14.30%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Unum demonstrated strong capital position, premium growth, and shareholder returns, it faced significant challenges in earnings shortfall, group disability claims, and long-term care claims pressure, leading to a revised EPS outlook.Q2-2025 Updates
Positive Updates
Strong Capital Position
Unum ended the quarter with $2 billion in holding company cash and a 485% risk-based capital ratio, indicating a robust capital position.
Premium Growth
The company experienced strong premium growth of nearly 5%, driven by growth in almost all product lines, including International premiums up 12% and Colonial Life with 3.5% growth.
Persistency Improvements
There was a modest uptick in persistency in the second quarter, ending the first half above expectations, which helps keep premium growth on track.
CapEx and Acquisitions
Unum completed acquisitions in the U.K. and U.S. to enhance digital platforms, including a small block of group business in the U.K. and Beanstalk Benefits in the U.S.
Shareholder Returns
A 10% increase in the annual common stock dividend was announced, along with $300 million in share repurchases during the second quarter, with expectations to reach the upper end of the $500 million to $1 billion range for the year.
Negative Updates
Earnings Shortfall
Second-quarter results fell short of expectations, particularly in GAAP earnings, due to higher-than-expected benefits experience in several lines of business.
Group Disability Claims
The benefit ratio for group disability was 62%, higher than anticipated due to lower recoveries and larger average claim sizes.
LTC Claims Pressure
Unfavorable long-term care (LTC) benefits experience was noted, especially in capped cohorts, with claims pressure related to higher average claim size.
Sales Performance
Sales in the first half of 2025 started slower than annual growth expectations and were lower year-over-year, with expectations for only flat sales growth for the full year.
Revised EPS Outlook
The full-year EPS expectation was revised to approximately $8.50, down from prior expectations.
Company Guidance
During the Unum Group's second quarter 2025 earnings call, several key metrics and guidance were shared. The company reported an adjusted after-tax operating income per share of $2.07, down from $2.16 in the same period last year, and adjusted its full-year EPS guidance to approximately $8.50 due to earnings pressures. Premium growth for core operations was 4.6%, with expectations to achieve the full-year premium growth outlook of 3% to 6%. The benefit ratio for group disability was reported at 62%, which, while higher than their outlook, reflects strong historical performance. The group life and AD&D benefit ratio was above 70%, consistent with prior expectations, though slightly elevated due to higher average claim sizes. Unum International and Colonial Life segments showed solid premium growth, with International up 12% on a constant currency basis, and Colonial Life experiencing a 3.5% increase. Unum also highlighted a robust capital position, ending the quarter with $2 billion in holding company cash and a 485% risk-based capital ratio, and increased its annual common stock dividend by 10%, along with $300 million in share repurchases during the quarter.Unum Group Financial Statement Overview
Summary
Unum Group's financial performance is solid, with steady revenue growth and strong profitability margins. The balance sheet is stable with manageable debt levels, but there is room for improvement in return on equity. Cash flow generation is healthy, supporting operational needs, although growth in free cash flow has decelerated.Income Statement
The company's revenue has shown consistent growth, with a TTM revenue of $12.87 billion, up from $12.79 billion in the previous year. Gross profit margin is strong at approximately 69.8%, and the EBIT margin stands at 16.2%. However, the net profit margin has slightly decreased due to lower net income in the TTM period.75
Positive
Balance Sheet
The balance sheet demonstrates moderate strength, with a debt-to-equity ratio of 0.37, indicating manageable leverage. The equity ratio is 16.3%, reflecting a reasonable equity position. However, the return on equity has declined slightly, reflecting decreased profitability relative to shareholder equity.68
Positive
Cash Flow
Operating cash flow has remained stable, supporting a strong free cash flow position with a slight upward trend. The free cash flow to net income ratio is robust, showcasing efficient cash generation relative to earnings. However, the free cash flow growth rate has slowed, indicating a need for careful cash management.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.87B | 12.79B | 12.39B | 11.99B | 12.01B | 13.16B |
| Gross Profit | 8.98B | 6.01B | 11.93B | 11.52B | 11.80B | 13.16B |
| EBITDA | 2.21B | 2.45B | 1.94B | 2.05B | 1.57B | 1.27B |
| Net Income | 1.57B | 1.78B | 1.28B | 1.41B | 981.00M | 793.00M |
Balance Sheet | ||||||
| Total Assets | 62.46B | 61.96B | 63.26B | 61.43B | 70.12B | 70.63B |
| Cash, Cash Equivalents and Short-Term Investments | 237.70M | 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 | 51.25B | 51.00B | 53.60B | 52.24B | 3.90B | 3.76B |
| Stockholders Equity | 11.21B | 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 | 1.57B | 1.51B | 1.20B | 1.42B | 1.39B | 597.50M |
| Investing Cash Flow | -374.20M | -344.40M | -725.90M | -955.90M | -1.34B | -267.70M |
| Financing Cash Flow | -1.24B | -1.15B | -450.10M | -418.60M | -168.90M | -216.90M |
Unum Group Technical Analysis
Negative
69.39
Price Trends
78.05
Negative
78.26
Negative
75.46
Negative
Market Momentum
-2.87
Positive
31.68
Neutral
9.19
Positive
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 69.39 is below the 20-day moving average (MA) of 75.55, below the 50-day MA of 78.05, and below the 200-day MA of 75.46, indicating a bearish trend. The MACD of -2.87 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 9.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNM.
Unum Group Risk Analysis
Unum Group disclosed 30 risk factors in its most recent earnings report. Unum Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Unum Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.65B | 14.09 | 8.40% | 2.52% | 1.78% | 0.77% | |
75 Outperform | $8.37B | 12.79 | 31.95% | 1.50% | 5.70% | 61.69% | |
74 Outperform | $11.26B | 11.11 | 20.02% | 0.73% | 4.02% | 13.01% | |
71 Outperform | $7.25B | 6.67 | 12.97% | 4.71% | 11.33% | -38.17% | |
69 Neutral | $11.82B | 8.30 | 13.95% | 2.48% | 1.69% | 22.65% | |
67 Neutral | $17.22B | 11.28 | 10.45% | 3.94% | 10.30% | 1.07% | |
67 Neutral | $3.54B | 13.46 | 11.35% | 1.76% | 0.82% | -29.29% |
* Financial Sector Average
Performance Comparison
UNM
Unum Group
69.39
17.01
32.47%
CNO
CNO Financial
37.03
6.09
19.68%
LNC
Lincoln National
38.22
10.38
37.28%
PRI
Primerica
258.27
8.58
3.44%
GL
Globe Life
139.05
46.68
50.54%
FG
F&G Annuities & Life Inc
34.50
-4.00
-10.39%
Unum Group Corporate Events
M&A TransactionsBusiness Operations and Strategy
Unum Group Completes Major Transaction with Fortitude Re
Neutral
Jul 2, 2025
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.
The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Unum Group Holds Annual Shareholders Meeting, Elects Directors
Positive
May 23, 2025
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.
The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.
Dividends
Unum Group Increases Quarterly Dividend by 10%
Positive
May 22, 2025
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.
The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.