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Unum Group
(NYSE:UNM)
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Rating:66Neutral
Price Target:
$90.00
▲(4.38% Upside)
Action:Downgraded
Date:07/30/26
UNM’s score is primarily supported by solid balance-sheet/cash-flow resilience and a constructive earnings call (reaffirmed EPS guidance, strong operating ROE, capital returns, and reduced LTC risk). Offsetting these positives are weaker recent financial statement trends (sharp TTM revenue and margin drop) and soft near-term technical setup (below 20/50-day averages), with valuation appearing mid-range rather than clearly discounted.
Positive Factors
Capitalization & leverage
Unum’s controlled leverage and sizable equity base provide durable balance-sheet resilience. With debt-to-equity near 0.3–0.4 and strong capital metrics, the firm is positioned to absorb underwriting volatility, maintain regulatory ratios, and fund ongoing business operations and capital returns over the intermediate term.
Negative Factors
Sharp TTM revenue and margin decline
A steep trailing‑twelve‑month revenue drop and compressed margins signal weakened near‑term earnings power and lower operating leverage. If persistent, this erosion can pressure ROE, reduce internal capital generation, and force tradeoffs between underwriting investments, pricing actions and shareholder distributions in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Capitalization & leverage
Unum’s controlled leverage and sizable equity base provide durable balance-sheet resilience. With debt-to-equity near 0.3–0.4 and strong capital metrics, the firm is positioned to absorb underwriting volatility, maintain regulatory ratios, and fund ongoing business operations and capital returns over the intermediate term.
Read all positive factors
Unum Group (UNM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.77B
Dividend Yield2.06%
Average Volume (3M)1.40M
Price to Earnings (P/E)21.3
Beta (1Y)0.72
Revenue Growth3.34%
EPS Growth-48.74%
CountryUS
Employees10,797
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)4.29
Shares Outstanding158,306,800
10 Day Avg. Volume1,203,879
30 Day Avg. Volume1,404,246
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$102.00Price Target Upside18.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)8.68
Revenue Forecast (FY)$11.81B
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:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational and financial picture: strong sales momentum (Unum U.S. sales +7.4% Q2, +14.3% YTD), record Colonial results, solid ROEs and a robust capital position with continued shareholder capital returns. Management reaffirmed full-year adjusted EPS guidance and highlighted meaningful progress on active management of the closed block (additional $3.8B LTC reinsurance). Offsetting these strengths were near-term challenges driven by elevated PFML/short-term disability experience in U.S. group disability, meaningful earnings pressure and higher claim severity in the U.K. group income protection business, closed-block volatility from group LTC terminations, and GAAP headwinds from transaction amortization and non-contemporaneous reinsurance impacts. Management has set pricing and underwriting actions underway (double-digit PFML rate increases, targeted U.K. pricing/underwriting), and expects many pressures to moderate as actions take effect.Positive Updates
Earnings Per Share Growth
Adjusted operating after-tax EPS of $2.16 in Q2 2026, up 4.9% year-over-year; year-to-date adjusted operating EPS growth of 7.5%; reaffirmed full-year adjusted operating EPS outlook of $8.60–$8.90.
Negative Updates
Paid Family & Medical Leave Pressure on Disability
Unum U.S. group disability benefit ratio 65.8% in Q2, above the 62%–64% expectation; PFML and elevated short-term disability were primary drivers, accounting for roughly 60%–70% of an approximate ~2 percentage point elevation in the benefit ratio. Management implementing double-digit price increases for new business and renewals; elevated benefit ratio expected until new pricing fully embeds.
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Q2-2026 Updates
Positive
Negative
Earnings Per Share Growth
Adjusted operating after-tax EPS of $2.16 in Q2 2026, up 4.9% year-over-year; year-to-date adjusted operating EPS growth of 7.5%; reaffirmed full-year adjusted operating EPS outlook of $8.60–$8.90.
Read all positive updates
Company Guidance
Unum reaffirmed its full‑year after‑tax adjusted operating EPS guidance of $8.60–$8.90 and said Q2 after‑tax adjusted operating EPS was $2.16 (up 4.9% Y/Y) with consolidated adjusted operating ROE of 15.9% (16.0% YTD); core earned premium grew 3.6% in Q2 (3.7% YTD; >5% on an adjusted basis) and the company remains positioned to achieve full‑year core premium growth of 4%–7%; Unum U.S. sales were $281.8M (+7.4% Q2, +14.3% YTD) with total U.S. group persistency at 91.5%, Colonial Life sales were $134.1M (+6%) with Colonial adjusted operating ROE of 19.4%, and Q2 statutory after‑tax operating income was $331M with full‑year statutory expectations of $1.2B–$1.4B (effective tax rate ~22% for the rest of 2026). Capital guidance: holding company liquidity $1.5B today (target year‑end $1.5B–$2B), traditional RBC 480% today (target year‑end 400%–425%), and planned shareholder deployment of ~$1.3B for the year ($750M YTD; ~$275M returned in Q2). On the Closed Block, the announced reinsurance covers ~$3.8B of reserves (≈26% of the LTC block, 52% of individual LTC), leaving ~ $7.1B retained reserves with ~$1.9B protections and reducing sensitivity metrics by ~28%–42%; related amortization and non‑contemporaneous reinsurance impacts are expected to be roughly $30M–$40M per quarter (≈$90M–$100M per quarter combined initially). The company noted near‑term pressure from PFML and U.K. group income protection but said pricing and underwriting actions are underway and affirmed its full‑year outlook.Unum Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.25B | 13.05B | 12.79B | 12.31B | 11.88B | 11.84B |
| Gross Profit | 4.73B | 4.99B | 4.74B | 4.03B | 3.93B | 3.32B |
| EBITDA | 1.21B | 1.27B | 2.57B | 1.94B | 2.05B | 1.57B |
| Net Income | 702.70M | 738.50M | 1.78B | 1.28B | 1.41B | 981.00M |
Balance Sheet | ||||||
| Total Assets | 63.49B | 64.09B | 62.35B | 63.61B | 61.53B | 71.23B |
| Cash, Cash Equivalents and Short-Term Investments | 199.20M | 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 | 52.68B | 52.98B | 51.39B | 53.96B | 52.79B | 59.81B |
| Stockholders Equity | 10.81B | 11.12B | 10.96B | 9.65B | 8.73B | 11.42B |
Cash Flow | ||||||
| Free Cash Flow | 693.00M | 555.40M | 1.39B | 1.07B | 1.32B | 1.28B |
| Operating Cash Flow | 830.40M | 687.70M | 1.51B | 1.20B | 1.42B | 1.39B |
| Investing Cash Flow | -828.50M | 548.90M | -344.40M | -725.90M | -955.90M | -1.34B |
| Financing Cash Flow | -997.50M | -1.24B | -1.15B | -450.10M | -418.60M | -168.90M |
Unum Group Technical Analysis
Positive
86.22
Price Trends
89.12
Positive
83.97
Positive
79.13
Positive
Market Momentum
1.19
Negative
55.84
Neutral
70.04
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 86.22 is below the 20-day moving average (MA) of 88.98, below the 50-day MA of 89.12, and above the 200-day MA of 79.13, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.04 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.65B | 12.43 | 32.55% | 1.42% | 8.23% | 23.45% | |
74 Outperform | $13.91B | 11.71 | 20.28% | 0.69% | 5.24% | 21.35% | |
73 Outperform | $3.59B | 8.83 | 8.86% | 3.27% | 13.68% | 16.86% | |
70 Outperform | $8.70B | 3.72 | 21.99% | 4.35% | 12.32% | 97.86% | |
69 Neutral | $9.17B | 166.44 | 1.04% | 2.85% | 15.09% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $14.77B | 21.33 | 6.43% | 2.19% | 3.34% | -48.74% |
* Financial Sector Average
UNM
Unum Group
89.77
22.31
33.07%
LNC
Lincoln National
45.08
6.33
16.33%
PRI
Primerica
308.21
45.05
17.12%
GL
Globe Life
178.08
42.41
31.26%
JXN
Jackson Financial Incorporation
134.86
42.26
45.64%
FG
F&G Annuities & Life Inc
25.55
-7.41
-22.47%
Unum Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Unum Group reduces long-term care exposure via reinsurance
Positive
Jul 6, 2026
On July 2, 2026, Unum Life Insurance Company of America agreed to a major coinsurance reinsurance transaction with Fortitude Reinsurance Company Ltd. to transfer a closed block of individual long-term care policies. The deal will reinsure $3.8 bil...
Business Operations and StrategyExecutive/Board Changes
Unum Elevates Andrew Walker to Customer Operations EVP
Positive
Jul 1, 2026
Unum Group has promoted Andrew Walker to Executive Vice President, Chief Customer Operations Officer, effective July 1, 2026, elevating his role while he continues to lead the company’s Customer Operations organization. Walker, who joined Un...
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...
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.