Unum Group (UNM)
NYSE:UNM
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Unum Group
(NYSE:UNM)
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Rating:65Neutral
Price Target:
$80.00
▲(9.74% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Unum Group (UNM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.94B
Dividend Yield2.22%
Average Volume (3M)1.87M
Price to Earnings (P/E)18.1
Beta (1Y)0.67
Revenue Growth1.80%
EPS Growth-44.44%
CountryUS
Employees10,833
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.92
Shares Outstanding163,753,810
10 Day Avg. Volume2,535,410
30 Day Avg. Volume1,873,178
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 Cap1.34
Enterprise Value/Revenue1.22
Enterprise Value/Gross Profit3.92
Enterprise Value/Ebitda12.60
Forecast
1Y Price Target
$94.88Price Target Upside30.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)8.71
Revenue Forecast (FY)$12.23B
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. ...
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, gr...
Unum Group Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a mix of pronounced strengths — solid top-line growth across core operations (notably Colonial and International), strong capital metrics (RBC ~440%, $3.2B holdco cash), successful LTC de-risking actions and continued digital adoption — alongside near-term profitability pressure driven by higher-than-expected benefits experience and quarter-to-quarter volatility (notably in group disability and some international claims). Management provided a constructive 2026 outlook (4%–7% premium growth, 8%–12% EPS growth on a redefined basis), committed to shareholder returns, and reiterated capital flexibility. Given strong capitalization, clear progress on legacy risks, and an optimistic but realistic outlook balanced against the earnings miss and margin variability, the overall tone is cautiously positive.Positive Updates
Top-line Growth in Core Operations
Core operations premium grew ~4.5% on a constant-currency basis excluding transaction impacts; reported core premium +3.7% for full year and +2.9% in Q4. Core operations sales finished the year up 1.1% and are expected to grow 4%–7% in 2026.
Negative Updates
Earnings and Statutory Results Below Expectations
Full-year adjusted EPS was $8.13 (below management expectations), full-year after-tax adjusted operating earnings $1.4B (or $8.13/share) and full-year statutory earnings $1.1B, which missed the prior $1.3B–$1.6B expectation.
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line Growth in Core Operations
Core operations premium grew ~4.5% on a constant-currency basis excluding transaction impacts; reported core premium +3.7% for full year and +2.9% in Q4. Core operations sales finished the year up 1.1% and are expected to grow 4%–7% in 2026.
Read all positive updates
Company Guidance
Unum guided to a solid 2026 outlook: core premium growth of 4%–7% (Unum US 4%–6%) with 2025 core premium up ~3.7% (≈4.5% adjusted) and core operations premium/CAGR to ~$10B, adjusted after‑tax operating EPS of $8.60–$8.90 (≈8%–12% growth off a redefined 2025 base of $7.93; reported 2025 adjusted EPS $8.13), continued strong returns (core ROE ~20% in 2025; group disability ROE >25% at a 62%–64% benefit ratio target for 2026 and not expected >65%), U.S. Group persistency ~90.2%, Colonial premium growth ~2.2%–4% with a 48%–50% benefit ratio and high‑teens ROE (Colonial sales +10% Q4, +5.3% FY), International top‑line momentum after 10% FY growth with a 2026 benefit ratio target of 70%–72%, supplemental/voluntary quarterly earnings ~$120M–$130M with a 48%–50% benefit ratio, a company expense ratio target ~22%, corporate losses ~$50M/quarter, capital generation $1.4B–$1.6B (statutory $1.2B–$1.4B) and free cash flow $1.2B–$1.4B, ~$1B share repurchase plan plus a 10% dividend increase (~$300M) (deploying ~100% of FCF), and year‑end capital targets of 400%–425% RBC, $2.0B–$2.5B holdco liquidity and <25% leverage (company exited 2025 with 440% RBC and $3.2B holdco cash); Closed Block will be excluded from adjusted operating results beginning Q1 2026, with ~$2.2B of protection, >$4B of LTC reserve reductions completed, Q4 LTC net premium ratio ~97.5%, and alternative portfolio Q4 annualized yield 7.6% (FY 6.4%; long‑term target 8%–10%).Unum Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| 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
Negative
72.90
Price Trends
73.80
Negative
75.19
Negative
74.98
Negative
Market Momentum
0.04
Negative
47.50
Neutral
52.69
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 72.9 is below the 20-day moving average (MA) of 73.19, below the 50-day MA of 73.80, and below the 200-day MA of 74.98, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.62B | 9.74 | 20.64% | 0.74% | 3.73% | 17.47% | |
74 Outperform | $7.79B | 11.22 | 32.29% | 1.59% | 5.63% | 67.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $11.94B | 18.10 | 6.63% | 2.22% | 1.80% | -44.44% | |
64 Neutral | $3.28B | 15.25 | 5.75% | 2.91% | -4.58% | ― | |
63 Neutral | $6.50B | 6.91 | 12.03% | 3.93% | 35.76% | 636.97% | |
53 Neutral | $7.17B | 276.83 | 0.26% | 2.98% | 24.94% | ― |
* Financial Sector Average
UNM
Unum Group
72.90
-5.27
-6.74%
LNC
Lincoln National
34.18
0.19
0.56%
PRI
Primerica
246.21
-32.53
-11.67%
GL
Globe Life
135.11
6.40
4.97%
JXN
Jackson Financial Incorporation
101.40
21.09
26.26%
FG
F&G Annuities & Life Inc
24.20
-9.90
-29.03%
Unum Group Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Unum Group Reports Q4 2025 Results and 2026 Outlook
Positive
Feb 5, 2026
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 o...
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.