Unum Group (UNM)
NYSE:UNM
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Unum Group
(NYSE:UNM)
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Rating:76Outperform
Price Target:
$95.00
â–²(19.30% Upside)
Action:Reiterated
Date:05/23/26
UNM scores well on solid underlying financials (moderate leverage and healthy cash generation) and a positive earnings outlook/capital return plan, supported by reasonable valuation. The main constraints are the recent TTM profitability/ROE downshift versus 2023–2024 and technically overbought momentum signals.
Positive Factors
Capital generation & returns
Sustained annual capital generation (guidance $1.4–$1.6B) and an active $1.0B buyback program demonstrate durable capacity to return capital. High repurchases in Q1 (~$400M) plus stated redeployment plans signal disciplined capital allocation that can support dividends and share count reduction over multiple quarters.
Negative Factors
Earnings/margin deterioration
A meaningful step-down in margins and trailing ROE indicates a material decline in earnings power versus 2023–2024. Persistently lower underwriting or investment profitability could limit sustainable capital generation, constrain long-term ROE recovery, and reduce the cushion for underwriting reserves and shareholder returns if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital generation & returns
Sustained annual capital generation (guidance $1.4–$1.6B) and an active $1.0B buyback program demonstrate durable capacity to return capital. High repurchases in Q1 (~$400M) plus stated redeployment plans signal disciplined capital allocation that can support dividends and share count reduction over multiple quarters.
Read all positive factors
Unum Group (UNM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.38B
Dividend Yield2.22%
Average Volume (3M)1.38M
Price to Earnings (P/E)18.9
Beta (1Y)0.69
Revenue Growth4.19%
EPS Growth-45.74%
CountryUS
Employees10,833
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)4.61
Shares Outstanding159,776,230
10 Day Avg. Volume1,952,885
30 Day Avg. Volume1,379,428
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.20
Price to Sales (P/S)1.02
P/FCF Ratio24.07
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue1.37
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda13.72
Forecast
1Y Price Target
$95.25Price Target Upside19.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)8.78
Revenue Forecast (FY)$11.67B
Unum Group Business Overview & Revenue Model
Company Description
Unum Group, along with its various subsidiaries, specializes in delivering financial protection benefits, primarily operating across the United States, the United Kingdom, and Poland. The company's operations are organized into distinct segments: ...
How the Company Makes Money
Unum primarily makes money by underwriting and administering insurance and employee benefit products, generating revenue mainly from premium income and, secondarily, from investment income on the assets backing its policy reserves.
1) Premiums fr...
Unum Group Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operating and financial picture: record and improved earnings in several core lines (Group Life, Colonial Life), strong sales growth, high persistency, solid Unum US profitability and robust capital metrics (RBC 460%, $1.7B liquidity). Management also highlighted active, methodical progress reducing long-term care (LTC) tail risk (7% of group LTC cases closed) and reiterated a clear capital deployment plan (repurchases and dividends). Offsetting items include quarterly weakness at Unum International (U.K. claim-size driven), a year-over-year decline in supplemental & voluntary earnings, GAAP volatility from closed-block LTC actions, and alternative portfolio yields below target. Overall, the highlights materially outweigh the lowlights and most of the negatives were described as manageable or transitory by management.Positive Updates
Strong adjusted operating earnings and EPS growth
After-tax adjusted operating earnings of $353 million and after-tax adjusted operating EPS of $2.14, up nearly 10% year-over-year, reflecting solid top- and bottom-line execution.
Negative Updates
Unum International earnings and benefit ratio pressure
Unum International adjusted operating income fell to $30.9 million from $38.7 million a year ago and missed the low-$40M outlook; the International benefit ratio rose to 71% from 66.5% YoY, driven by unfavorable experience in the U.K. (larger average claim sizes).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong adjusted operating earnings and EPS growth
After-tax adjusted operating earnings of $353 million and after-tax adjusted operating EPS of $2.14, up nearly 10% year-over-year, reflecting solid top- and bottom-line execution.
Read all positive updates
Company Guidance
Unum reiterated 2026 guidance of 4%–7% top‑line growth and 8%–12% EPS growth, with a focus on attractive core ROEs and continued capital deployment: it expects $1.4–$1.6B of total capital generation for the year, roughly $1.3B of redeployment (about annual generation), and a $1.0B share‑repurchase program (Q1 repurchases ≈ $400M, reducing float ~3%); Q1 supported the outlook with after‑tax adjusted operating EPS of $2.14 (up ~10% YoY), core premium growth of 3.9% (just over 5% ex‑runoff/transactions), sales growth (~14%), and group persistency of 92% (+2.7 pts YoY). Balance‑sheet targets are intact: RBC ~460% at quarter‑end (full‑year target 400%–425%), holding company liquidity ~$1.7B (target $2.0–$2.5B), closed‑block fair‑wind protection ~$2.2B, and the closed‑block alternative portfolio yielded 6.7% annualized (vs a long‑run 8%–10% expectation); the company paid ≈$78M in dividends in Q1 and indicated plans to modestly raise the dividend.Unum Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.30B | 13.05B | 12.79B | 12.31B | 11.88B | 11.84B |
| Gross Profit | 4.51B | 4.99B | 4.74B | 4.03B | 3.93B | 3.32B |
| EBITDA | 1.33B | 1.27B | 2.57B | 1.94B | 2.05B | 1.57B |
| Net Income | 781.40M | 738.50M | 1.78B | 1.28B | 1.41B | 981.00M |
Balance Sheet | ||||||
| Total Assets | 62.71B | 64.09B | 62.35B | 63.61B | 61.53B | 71.23B |
| Cash, Cash Equivalents and Short-Term Investments | 192.60M | 158.20M | 162.80M | 146.00M | 119.20M | 75.00M |
| Total Debt | 3.76B | 3.90B | 3.86B | 3.54B | 3.43B | 3.58B |
| Total Liabilities | 51.82B | 52.98B | 51.39B | 53.96B | 52.79B | 59.81B |
| Stockholders Equity | 10.89B | 11.12B | 10.96B | 9.65B | 8.73B | 11.42B |
Cash Flow | ||||||
| Free Cash Flow | 538.80M | 555.40M | 1.39B | 1.07B | 1.32B | 1.28B |
| Operating Cash Flow | 674.90M | 687.70M | 1.51B | 1.20B | 1.42B | 1.39B |
| Investing Cash Flow | 643.70M | 548.90M | -344.40M | -725.90M | -955.90M | -1.34B |
| Financing Cash Flow | -1.36B | -1.24B | -1.15B | -450.10M | -418.60M | -168.90M |
Unum Group Technical Analysis
Positive
79.63
Price Trends
82.54
Positive
77.86
Positive
76.64
Positive
Market Momentum
2.81
Negative
64.45
Neutral
74.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNM, the sentiment is Positive. The current price of 79.63 is below the 20-day moving average (MA) of 87.06, below the 50-day MA of 82.54, and above the 200-day MA of 76.64, indicating a bullish trend. The MACD of 2.81 indicates Negative momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 74.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNM.
Unum Group Risk Analysis
Unum Group disclosed 60 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.79B | 11.56 | 32.28% | 1.59% | 5.70% | 61.07% | |
76 Outperform | $14.38B | 18.89 | 7.07% | 2.22% | 4.19% | -45.74% | |
76 Outperform | $13.26B | 11.38 | 20.32% | 0.74% | 3.96% | 18.81% | |
75 Outperform | $3.64B | 6.85 | 11.42% | 2.91% | 17.32% | -0.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $7.11B | 4.11 | 16.79% | 3.93% | 8.45% | 21.80% | |
62 Neutral | $7.45B | -19.96 | -3.73% | 2.98% | -20.54% | -652.89% |
* Financial Sector Average
UNM
Unum Group
89.98
12.56
16.23%
LNC
Lincoln National
37.17
5.70
18.12%
PRI
Primerica
281.78
25.13
9.79%
GL
Globe Life
170.76
51.19
42.81%
JXN
Jackson Financial Incorporation
106.81
24.93
30.44%
FG
F&G Annuities & Life Inc
27.49
-3.09
-10.10%
Unum Group Corporate Events
Executive/Board ChangesShareholder Meetings
Unum Group Shareholders Reelect Board, Back Governance Measures
Positive
May 22, 2026
Unum Group held its Annual Meeting of Shareholders on May 21, 2026, where investors elected eleven director nominees to one-year terms expiring in 2027, reaffirming the existing leadership structure with solid support across the slate. Shareholder...
Business Operations and StrategyDividendsFinancial Disclosures
Unum Group Approves 10% Increase in Quarterly Dividend
Positive
May 21, 2026
On May 21, 2026, Unum Group announced that its board of directors approved an approximate 10 percent increase in the quarterly dividend on its common stock. The new rate of 50.5 cents per share, equivalent to $2.02 annually, is scheduled to take e...
Business Operations and StrategyRegulatory Filings and Compliance
Unum Group Updates Bylaws to Modernize Corporate Governance
Positive
Mar 6, 2026
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...
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.