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Unum Group (UNM)
NYSE:UNM
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Unum Group (UNM) AI Stock Analysis

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UNM

Unum Group

(NYSE:UNM)

Rating:74Outperform
Price Target:
$90.00
â–²(11.83%Upside)
Unum Group demonstrates strong financial stability and a solid valuation, making it attractive for investors. The company's strategic initiatives and positive corporate events further enhance its prospects, despite some operational challenges highlighted in the earnings call.
Positive Factors
Capital Management
The company left the door open to raising the buyback guide when the LTC deal closes, which would be beneficial to the stock price.
De-risking 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.
Financial Performance
Unum Group sees 2025 EPS growth of 8-12%, which is above analyst and consensus estimates.
Negative Factors
Earnings Forecast
Lower premium income reduces EPS forecasts, with EPS falling 2.3% in 2025 while FY26E-27 virtually unchanged.
Earnings Performance
UNM shares traded down owing to the earnings miss and weaker disability results in the quarter.
Premium Growth
UNM lowered its 2025 EPS growth outlook to 6-10% and lowered its core premium growth expectation to 3-6%.

Unum Group (UNM) vs. SPDR S&P 500 ETF (SPY)

Unum Group Business Overview & Revenue Model

Company DescriptionUnum 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 MoneyUnum Group generates revenue primarily through the sale of insurance policies and related services. The company's key revenue streams include premiums collected from policyholders for various types of insurance coverage, such as disability, life, and supplemental health insurance. Unum also earns income from investments made with the premiums collected, which contributes to its overall profitability. Significant partnerships with employers and brokers help drive sales by offering Unum's products as part of employee benefits packages. The company focuses on maintaining a strong underwriting discipline and efficient claims management to ensure profitability and sustainability in its operations.

Unum Group Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 1.56%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a well-balanced performance with strong capital positioning, significant achievements in long-term care risk reduction, and robust sales in key segments. However, increased disability claims and lower persistency in some areas posed challenges. Despite these, the company remains confident in meeting its full-year growth outlook.
Q1-2025 Updates
Positive Updates
Strong Capital Position
Unum ended the quarter with record levels of holding company liquidity at $2.2 billion and an RBC position of 460%, providing high levels of optionality for capital deployment.
Long-Term Care Reinsurance Transactions
Successfully announced two long-term care transactions removing 20% of the risk of the block at favorable economic terms, releasing significant capital.
Positive Premium Growth
Core operations achieved a premium growth rate of over 4%, with sales in the Unum U.S. segment slightly increasing by approximately 1% year-over-year.
Voluntary Benefits Sales Surge
Strong voluntary benefits sales growth reported, contributing to achieving sales goals for 2025, with significant increases across all segments.
Robust International Performance
Premium income for Unum International increased by 7% year-over-year, including 18% growth in Unum Poland.
Negative Updates
Increased Disability Claims
Earnings per share were impacted by a higher level of disability claims, particularly in the group disability line, with an increased benefit ratio.
Decline in International Segment Sales
The international segment saw a large decline, particularly affected by a lack of large case sales.
Lower Persistency in Some Product Lines
Persistency in some product lines was lower than last year's high, impacting overall sales.
Alternative Asset Portfolio Challenges
Lower returns in the alternative asset portfolio backing the long-term care block affected headline results.
Company Guidance
During Unum Group's Q1 2025 earnings call, the company reaffirmed its full-year growth outlook of 6% to 10%, citing strong performance across its core operations. Key metrics highlighted include a return on equity (ROE) of over 20%, over 4% premium growth, and $350 million in underlying statutory earnings. Additionally, the company reported an elevated group disability benefit ratio of 61.8% due to higher disability claims, but remains confident in achieving an annual benefit ratio expectation in the low 60s. The first quarter earnings per share (EPS) was $2.04, slightly below expectations due to these claims. Unum also noted robust capital metrics, with record holding company liquidity at $2.2 billion and a risk-based capital (RBC) ratio of 460%. The company executed $200 million in share repurchases during the quarter and plans to increase this in the second quarter. Despite some variability in international sales, Unum U.S. and Colonial Life segments showed growth, with voluntary benefits sales particularly strong. The company continues to focus on digital interactions to strengthen client relationships and anticipates further sales growth, aided by a healthy sales pipeline and strategic investments in technology.

Unum Group Financial Statement Overview

Summary
Unum Group exhibits solid financial performance with consistent revenue growth and strong profitability margins. The balance sheet is stable, with manageable debt levels, although return on equity has room for improvement. Cash flow generation remains healthy, supporting operational needs, but there is a slowdown in free cash flow growth.
Income Statement
75
Positive
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.
Balance Sheet
68
Positive
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.
Cash Flow
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.87B12.79B12.39B11.99B12.01B13.16B
Gross Profit8.98B6.01B11.93B11.52B11.80B13.16B
EBITDA2.21B2.45B1.94B2.05B1.57B1.27B
Net Income1.57B1.78B1.28B1.41B981.00M793.00M
Balance Sheet
Total Assets62.46B61.96B63.26B61.43B70.12B70.63B
Cash, Cash Equivalents and Short-Term Investments237.70M1.40B146.00M1.51B1.46B1.67B
Total Debt3.74B3.74B3.43B3.43B3.44B3.35B
Total Liabilities51.25B51.00B53.60B52.24B3.90B3.76B
Stockholders Equity10.19B10.96B9.65B9.20B11.42B10.87B
Cash Flow
Free Cash Flow1.44B1.39B1.07B1.32B1.28B478.40M
Operating Cash Flow1.57B1.51B1.20B1.42B1.39B597.50M
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

Technical Analysis Sentiment
Positive
Last Price80.48
Price Trends
50DMA
80.40
Positive
100DMA
79.42
Positive
200DMA
74.98
Positive
Market Momentum
MACD
0.12
Positive
RSI
50.68
Neutral
STOCH
51.37
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 80.48 is above the 20-day moving average (MA) of 80.47, above the 50-day MA of 80.40, and above the 200-day MA of 74.98, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.37 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 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$8.75B17.9723.90%1.46%10.18%-9.75%
74
Outperform
$10.14B9.9920.47%0.83%5.41%16.60%
74
Outperform
$14.14B9.5714.68%2.09%1.69%25.54%
67
Neutral
$4.18B8.3912.72%2.79%-1.72%95.91%
65
Neutral
$5.89B4.9016.91%6.52%8.31%-2.30%
58
Neutral
HK$91.42B5.42-3.21%4.84%7.36%-55.21%
58
Neutral
$3.73B13.1412.47%1.73%-0.78%-16.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UNM
Unum Group
80.48
28.25
54.09%
CNO
CNO Financial
37.62
7.82
26.24%
LNC
Lincoln National
34.50
4.30
14.24%
PRI
Primerica
266.35
21.58
8.82%
GL
Globe Life
122.83
35.32
40.36%
FG
F&G Annuities & Life Inc
31.21
-10.75
-25.62%

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.Date of analysis: Jul 17, 2025