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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on UNM

Unum Group's recent performance was driven by growing premium income, solid segment performance, and steady investment income growth. The company's Q3 results reflected higher premium income, strong performance at Colonial Life, and favorable persistency in the Unum U.K. Despite escalating expenses, Unum's pricing power and focus on workplace benefits drive robust profits. The company's capital allocation strategy, including share buybacks and dividend payments, supports long-term value. Management guides for 8-12% EPS growth, and recent reinsurance deals reduce future risk.

1.c. Company Highlights

2. Unum Group's Q3 2025 Earnings: A Strong Performance

Unum Group reported a solid financial performance in Q3 2025, with revenues growing 2.9% to $1.13 billion, slightly below analyst estimates. The company's EPS came in at $2.09, missing the consensus estimate of $2.15. The core operations segment continued to drive growth, with premium income rising 4% year-to-date, and disciplined execution maintaining industry-leading margins. The return on equity for core operations remained near 20%, a testament to the company's profitability.

Publication Date: Nov -05

📋 Highlights
  • Core Premium Growth:: Excluding transactions, core operations saw 4.5% premium growth (Unum US +4%, Colonial Life +3%, International +10%).
  • Return on Equity:: Core operations maintained near 20% ROE, driven by disciplined pricing and risk selection.
  • Capital Returns:: Unum returned $1.3 billion to shareholders in 2025 ($750M share buybacks, $230M dividends, $300M projected Q4 dividends).
  • Reserve Adjustments:: LTC reserve updates increased reserves by $200M but reduced future risk, with $525M reserve reduction from rate increase plans.
  • International Momentum:: Poland and UK delivered double-digit sales growth, contributing to strong international premium gains.

Segment Performance

The Unum US and Colonial Life segments delivered strong sales and premium growth, with Unum US growing nearly 4% and Colonial Life up over 3%. The International segment also reported 10% growth. The company's technology initiatives, such as HR Connect and Total Leave, continue to differentiate it in the market, driving stronger engagement and retention.

Closed Block and LTC Reinsurance

The Closed Block produced adjusted operating income of $14.1 million, below the $34.2 million in the year-ago period. The long-term care (LTC) reinsurance transaction had a significant impact on the results. The company has taken decisive actions to manage the Closed Block, including discontinuing new employee coverage on existing group LTC cases effective February 1, 2026, and adjusting its assumptions to derisk its assumption set. As Steven Zabel noted, "We've put LTC in Closed Block status and focus on cash generation or deployment for the long-term care block."

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 1.22, the stock appears to be reasonably valued. The Dividend Yield is 2.25%, providing a relatively stable source of return. Unum's core business continues to deliver robust margins and top-line growth, fueling strong earnings and capital generation. The company's guidance for 2026 is awaited with anticipation, but the current momentum is expected to continue, with analysts estimating revenue growth at 2.9% next year.

Management's Focus

Management is focused on delivering on its purpose, growing the number of people it protects, and prioritizing profitability and long-term growth. The company is well-positioned, with a strong statutory earnings power and a robust capital position, enabling it to deploy capital effectively. Unum's disciplined approach to building franchise value and delivering long-term returns is evident in its strategic initiatives and shareholder-friendly actions.

3. NewsRoom

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Unum Group's Board of Directors Authorizes $1 Billion Share Repurchase Program

Dec -04

Source: businesswire.com

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4 Accident & Health Insurers to Watch Amid Rising Medical Costs

Dec -02

Source: zacks.com

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Boston Partners Grows Position in Unum Group $UNM

Nov -29

Source: defenseworld.net

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Unum Group $UNM Shares Acquired by Allworth Financial LP

Nov -17

Source: defenseworld.net

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Unum Group Completes Senior Notes Offering

Nov -14

Source: businesswire.com

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6,281 Shares in Unum Group $UNM Acquired by Aviva PLC

Nov -14

Source: defenseworld.net

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Unum Group $UNM Shares Sold by AE Wealth Management LLC

Nov -14

Source: defenseworld.net

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ABN Amro Investment Solutions Purchases Shares of 46,690 Unum Group $UNM

Nov -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.31%)

6. Segments

Unum US

Expected Growth: 4.5%

Unum US, a subsidiary of Unum Group, achieves 4.5% growth driven by increasing demand for employee benefits, expansion of voluntary benefits offerings, and strategic partnerships. Additionally, a strong brand reputation, effective underwriting, and efficient claims processing contribute to the segment's growth.

Closed Block

Expected Growth: 3.5%

Unum Group's Closed Block segment growth of 3.5% is driven by disciplined risk management, favorable mortality experience, and effective asset liability management. Additionally, the company's focus on expense management and strategic capital allocation have contributed to the segment's growth. Furthermore, the Closed Block's stable cash flows and low volatility have enabled Unum Group to invest in growth initiatives, driving the segment's expansion.

Colonial Life

Expected Growth: 4.2%

Colonial Life's 4.2% growth is driven by increasing demand for voluntary benefits, expansion into new markets, and strategic partnerships. Additionally, Unum Group's strong brand reputation, diversified product portfolio, and effective distribution channels contribute to the segment's growth. Furthermore, the rising need for employee benefits and a growing middle class also support Colonial Life's growth momentum.

Unum International

Expected Growth: 4.8%

Unum International's 4.8% growth is driven by increasing demand for employee benefits in the UK and Ireland, expansion into new markets, and strategic partnerships. Additionally, the segment benefits from Unum Group's strong brand reputation, diversified product offerings, and effective risk management practices, enabling it to capitalize on growth opportunities in the international insurance market.

Corporate Segment

Expected Growth: 3.8%

Unum Group's Corporate Segment growth of 3.8% is driven by increased sales of employee benefits, expansion into new markets, and strategic partnerships. Additionally, the segment has benefited from favorable pricing trends, improved underwriting margins, and effective cost management. These factors have contributed to the segment's strong performance and positioned it for continued growth.

Reconciling Items

Expected Growth: 4.1%

Unum Group's 4.1% growth driven by increasing demand for employee benefits, expansion in the voluntary benefits market, and strategic acquisitions. Additionally, favorable underwriting results, improved risk management, and effective cost management contribute to the growth. Furthermore, the company's focus on digital transformation and enhanced customer experience also support its growth momentum.

7. Detailed Products

Group Life Insurance

Provides financial protection to employees' families in the event of their death, with a lump-sum payment to help cover funeral expenses, outstanding debts, and ongoing living expenses.

Group Disability Insurance

Provides income replacement to employees who become too sick or injured to work, helping them to maintain their standard of living.

Group Voluntary Benefits

Offers employees a range of voluntary benefits, including accident, critical illness, and hospital indemnity insurance, which can be paid for through payroll deductions.

Supplemental Health Insurance

Provides additional financial protection to employees who are experiencing a serious illness or injury, helping to cover out-of-pocket medical expenses.

Long-Term Care Insurance

Helps employees prepare for the potential need for long-term care, such as assisted living or home health care, due to age, disability, or illness.

Retirement Plans

Offers a range of retirement plan options, including 401(k), 403(b), and pension plans, to help employees save for retirement.

8. Unum Group's Porter Forces

Forces Ranking

Threat Of Substitutes

Unum Group operates in the insurance industry, which has a moderate threat of substitutes. While there are alternative insurance providers, Unum Group's products and services are differentiated, reducing the threat of substitutes.

Bargaining Power Of Customers

Unum Group's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings, making it difficult for customers to negotiate prices or terms.

Bargaining Power Of Suppliers

Unum Group has a diversified supply chain, and its suppliers have limited bargaining power due to the company's large scale and negotiating power.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory requirements and capital requirements, making it difficult for new entrants to enter the market and compete with Unum Group.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. Unum Group faces intense rivalry from competitors, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.33%
Debt Cost 7.25%
Equity Weight 73.67%
Equity Cost 8.18%
WACC 7.94%
Leverage 35.74%

11. Quality Control: Unum Group passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Unum

A-Score: 6.8/10

Value: 7.4

Growth: 5.7

Quality: 6.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
CNO Financial Group

A-Score: 6.3/10

Value: 6.7

Growth: 6.4

Quality: 5.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Primerica

A-Score: 6.2/10

Value: 5.6

Growth: 7.3

Quality: 7.4

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
F&G Annuities & Life

A-Score: 5.9/10

Value: 8.4

Growth: 8.4

Quality: 6.2

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Jackson Financial

A-Score: 5.9/10

Value: 5.3

Growth: 4.3

Quality: 7.1

Yield: 8.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
American Equity

A-Score: 5.4/10

Value: 9.6

Growth: 7.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.34$

Current Price

73.34$

Potential

-0.00%

Expected Cash-Flows