Unum Group (UNM) AI Stock Analysis

• Market Cap: $13.63B
• Dividend Yield: 2.1%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.35
• Revenue Growth: 4.03%
• EPS Growth: 45.42%
• Country: US
• Employees: 10,833
• Sector: Financial
• Sector Strength: 85
• Industry: Insurance - Life
• EPS (TTM): 9.47
• Shares Outstanding: 176,221,880
• 10 Day Avg. Volume: 2,039,754
• 30 Day Avg. Volume: 1,953,378
• PEG Ratio: 0.18
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.12
• Price to Cash Flow (P/CF): 7.40
• P/FCF Ratio: 6.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $94.45
• Price Target Upside: 24.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Unum Group demonstrates strong financial performance with solid revenue growth and profitability. While technical indicators show positive momentum, potential overvaluation risk is suggested by a high RSI. The favorable valuation and optimistic earnings outlook bolster the stock's attractiveness, though asset management concerns and segment-specific challenges warrant attention.

Positive Factors

Capital Position

Unum's 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.

Sales Performance

Aggregate new sales advanced 14% year over year to $850 million, which compared to our model at up 11% and the 3Q actual of down 3%.

Negative Factors

Earnings Performance

Unum Group's 4Q:24 operating EPS was below both analyst and consensus expectations.

Premium Income

Lower premium income reduces EPS forecasts, with EPS falling 2.3% in 2025 while FY26E-27 virtually unchanged.

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. 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 Money

Unum Group generates revenue primarily through the sale of insurance products and the collection of insurance premiums. The company's key revenue streams include individual disability insurance, group disability insurance, life insurance, and supplemental health products. Unum also earns money through investment income from managing and investing policyholder premiums. Significant partnerships with employers and brokers help expand their distribution network, facilitating access to a larger customer base and enhancing premium collections. Additionally, Unum's financial performance is influenced by its underwriting practices, claims management, and risk assessment strategies, which ensure profitability by balancing premium income with potential payouts.

Unum Group Financial Statement Overview

Summary

Unum Group's financial health reflects strong revenue growth and improved profitability, supported by a robust cash flow position. The company's leverage situation is favorable, though asset management requires attention. Overall, Unum exhibits a solid financial foundation with promising operational efficiency.

Income Statement

Unum Group has demonstrated consistent revenue growth, with a notable increase from $12.39 billion in 2023 to $12.89 billion in 2024. The net profit margin improved significantly, reflecting strong operational efficiency. However, the absence of EBIT and EBITDA figures for 2024 limits a complete profitability assessment.

Balance Sheet

The company's debt-to-equity ratio improved, indicating a favorable leverage position with a decrease in total debt relative to equity. The equity ratio remains strong, ensuring stability. Nonetheless, a substantial drop in total assets from 2023 to 2024 raises some concerns about asset management.

Cash Flow

The cash flow position is robust, with a significant increase in free cash flow from $1.07 billion in 2023 to $1.39 billion in 2024. This growth underscores strong operational cash generation capabilities. The operating cash flow to net income ratio remains healthy, indicating efficient conversion of earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.89B	12.39B	11.99B	12.01B	13.16B
	Gross Profit
12.89B	11.93B	11.52B	11.80B	13.16B
	EBIT
0.00	1.93B	1.82B	820.10M	739.80M
	EBITDA
0.00	1.94B	2.05B	1.57B	1.27B
	Net Income Common Stockholders
1.78B	1.28B	1.41B	981.00M	793.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	146.00M	1.51B	1.46B	1.67B
	Total Assets
15.65B	63.26B	61.43B	70.12B	70.63B
	Total Debt
3.74B	3.43B	3.43B	3.44B	3.35B
	Net Debt
3.74B	3.28B	3.31B	3.37B	3.15B
	Total Liabilities
4.69B	53.60B	52.24B	3.90B	3.76B
	Stockholders Equity
10.96B	9.65B	9.20B	11.42B	10.87B
Cash Flow		Free Cash Flow
1.39B	1.07B	1.32B	1.28B	478.40M
	Operating Cash Flow
1.51B	1.20B	1.42B	1.39B	597.50M
	Investing Cash Flow
-344.40M	-725.90M	-955.90M	-1.34B	-267.70M
	Financing Cash Flow
-1.15B	-450.10M	-418.60M	-168.90M	-216.90M

Unum Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 75.87 is below the 20-day moving average (MA) of 78.34, below the 50-day MA of 77.95, and above the 200-day MA of 66.69, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 71.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNM.

Unum Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRI	78 Outperform	$8.54B	18.90	23.10%	1.39%	10.06%	-13.72%
GL	77 Outperform	$9.95B	10.01	21.87%	0.78%	6.07%	17.69%
UNM	75 Outperform	$13.63B	8.18	17.26%	2.10%	4.03%	45.42%
FG	70 Outperform	$4.64B	7.25	18.12%	2.50%	27.35%	―
LNC	68 Neutral	$5.16B	1.64	43.24%	5.99%	47.95%	―
CNO	66 Neutral	$3.83B	10.21	17.14%	1.68%	7.83%	55.84%
Sector *	63 Neutral	$12.75B	9.36	8.64%	84.32%	13.82%	-3.89%

Unum Group Corporate Events

Unum Group Enters Agreement with Fortitude Reinsurance

On February 26, 2025, Unum Life Insurance Company of America, a subsidiary of Unum Group, entered into a Master Transaction Agreement with Fortitude Reinsurance Company Ltd. to reinsure a portion of its closed block individual long-term care business and individual disability business. This transaction, effective January 1, 2025, involves ceding $3.4 billion of long-term care reserves and $120 million of in-force premium to Fortitude Re, with an expected capital benefit of $100 million for Unum. The move is part of Unum’s strategy to reduce exposure to legacy long-term care business and focus on higher-returning core businesses, while continuing to provide service and administration for the reinsured business. The transaction is anticipated to close in 2025, subject to regulatory approvals and customary conditions.

Unum Group Reports Strong Q4 2024 Financial Results

Unum Group reported strong financial results for the fourth quarter of 2024, with net income of $348.7 million, reflecting an increase from the previous year. The company demonstrated robust growth across its core operations, with a solid balance sheet and liquidity, as well as a positive outlook for 2025, anticipating continued premium and earnings growth.