Key Takeaways Unum is expected to benefit from favorable persistency and stronger sales across its insurance businesses. UNM's key operating segments are likely to see growth from voluntary benefits, life and disability products. Unum is expected to face higher expenses, while continued share buybacks may support earnings. Unum Group (UNM - Free Report) is expected to register an improvement in its bottom line but a decline in the top line when it reports second-quarter 2026 results on July 28, after the closing bell.
The Zacks Consensus Estimate for UNM’s second-quarter revenues is pegged at $2.95 billion, indicating a 12.6% decline from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.14 per share. The Zacks Consensus Estimate for UNM’s second-quarter earnings has moved south by 0.4% in the past 30 days. The estimate suggests a year-over-year increase of 3.3%.
What the Zacks Model Unveils for UNMOur proven model does not conclusively predict an earnings beat for Unum Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: Unum Group has an Earnings ESP of -0.89%. This is because the Most Accurate Estimate of $2.13 is pegged lower than the Zacks Consensus Estimate of $2.14. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Unum Group currently carries a Zacks Rank #3.
Factors Likely to Shape Q2 Results of UNMFavorable persistency and better sales in the operating segments are likely to have favored premiums in the second quarter. Our estimate and the Zacks Consensus Estimate for premium income are both pegged at $2.6 billion.
Net investment income is likely to have increased due to higher invested assets and higher miscellaneous investment income. Our estimate for investment income is pegged at $297.3 million, suggesting a 47% decrease from the year-ago quarter. The Zacks Consensus Estimate is pegged at $269 million.
The performance of Unum U.S. and Colonial Life — two of the largest operating segments — is likely to have been driven by stable overall persistency in the voluntary benefits and dental and vision product lines, and higher prior period sales in the voluntary benefits product line, improved benefit experience across life, accident, sickness, and disability product lines, and in-force block growth.
Better performance in life and group disability is likely to aid Unum U.S. results.
Our estimate for Unum U.S. operating revenues is pegged at $2 billion, while the same for Colonial Life is pinned at $516.5 million.
Favorable results at group long-term disability, Group Life and Supplemental are likely to have favored Unum UK. This, combined with in-force block growth, sales and favorable overall persistency at Unum Poland, is likely to have benefited Unum International. Our estimate for Unum International’s operating revenues is pegged at $336.1 million.
Expenses are likely to have increased because of higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses.
Continued share buybacks are likely to have contributed to the bottom line.
Stocks to ConsiderSome insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Aflac Incorporated (AFL - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.77, indicating a year-over-year decrease of 0.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AFL’s earnings beat estimates in two of the last four reported quarters and missed in the other two.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.59% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $5.61, indicating a year-over-year decrease of 5.5%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.23, indicating a year-over-year decrease of 1.8%.
AXS’s earnings beat estimates in each of the last four reported quarters.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Chattanooga, Unum (UNM - Free Report) is a Finance stock that has seen a price change of 13.28% so far this year. The insurance company is paying out a dividend of $0.46 per share at the moment, with a dividend yield of 2.1% compared to the Insurance - Accident and Health industry's yield of 1.34% and the S&P 500's yield of 1.34%.
Looking at dividend growth, the company's current annualized dividend of $1.84 is up 4.5% from last year. Over the last 5 years, Unum has increased its dividend 4 times on a year-over-year basis for an average annual increase of 9.80%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Unum's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
UNM is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $8.75 per share, with earnings expected to increase 7.63% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, UNM is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
California Public Employees Retirement System reduced its stake in shares of Unum Group (NYSE:UNM – Free Report) by 8.8% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 420,646 shares of the financial services provider’s stock after selling 40,515 shares during the quarter. California Public Employees Retirement System owned about 0.26% of Unum Group worth $30,720,000 at the end of the most recent quarter.
Several other large investors have also recently added to or reduced their stakes in UNM. Norges Bank acquired a new position in shares of Unum Group during the fourth quarter valued at $1,108,919,000. Zurich Insurance Group Ltd FI bought a new position in shares of Unum Group during the fourth quarter worth about $58,860,000. Alyeska Investment Group L.P. increased its holdings in shares of Unum Group by 365.3% in the 4th quarter. Alyeska Investment Group L.P. now owns 930,534 shares of the financial services provider’s stock worth $72,116,000 after acquiring an additional 730,534 shares during the period. AQR Capital Management LLC increased its holdings in shares of Unum Group by 35.1% in the 3rd quarter. AQR Capital Management LLC now owns 2,339,289 shares of the financial services provider’s stock worth $181,622,000 after acquiring an additional 607,684 shares during the period. Finally, Two Sigma Investments LP lifted its position in Unum Group by 127.3% in the 3rd quarter. Two Sigma Investments LP now owns 864,485 shares of the financial services provider’s stock valued at $67,240,000 after purchasing an additional 484,107 shares during the last quarter. 86.57% of the stock is owned by institutional investors and hedge funds.
Unum Group Price Performance Shares of NYSE UNM opened at $88.40 on Wednesday. The stock has a market cap of $14.12 billion, a P/E ratio of 19.22, a P/E/G ratio of 0.89 and a beta of 0.25. The firm’s 50-day simple moving average is $87.53 and its 200 day simple moving average is $79.89. Unum Group has a fifty-two week low of $68.28 and a fifty-two week high of $93.21. The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of 0.35.
Unum Group (NYSE:UNM – Get Free Report) last announced its earnings results on Tuesday, April 28th. The financial services provider reported $2.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.07 by $0.07. The firm had revenue of $3.36 billion during the quarter, compared to analyst estimates of $2.91 billion. Unum Group had a net margin of 5.86% and a return on equity of 12.60%. Unum Group’s revenue was up 8.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.04 EPS. Unum Group has set its FY 2026 guidance at 8.600-8.90 EPS. Equities analysts expect that Unum Group will post 8.75 EPS for the current year.
Unum Group Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 24th will be issued a $0.505 dividend. This represents a $2.02 annualized dividend and a dividend yield of 2.3%. This is a boost from Unum Group’s previous quarterly dividend of $0.46. The ex-dividend date is Friday, July 24th. Unum Group’s payout ratio is 40.00%.
Analysts Set New Price Targets A number of research analysts have issued reports on the stock. Zacks Research raised shares of Unum Group from a “strong sell” rating to a “hold” rating in a research note on Monday, April 6th. Evercore reaffirmed an “outperform” rating and set a $106.00 price target on shares of Unum Group in a report on Tuesday, July 7th. Wells Fargo & Company boosted their price objective on Unum Group from $100.00 to $101.00 and gave the stock an “overweight” rating in a research report on Thursday, July 9th. JPMorgan Chase & Co. boosted their price objective on Unum Group from $90.00 to $101.00 and gave the stock a “neutral” rating in a research report on Tuesday. Finally, Wolfe Research decreased their price objective on Unum Group from $102.00 to $100.00 and set an “outperform” rating for the company in a report on Monday, July 6th. Eight investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $98.17.
View Our Latest Research Report on UNM
Insider Activity at Unum Group In related news, EVP Elizabeth Claire Ahmed sold 12,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $80.14, for a total transaction of $961,680.00. Following the transaction, the executive vice president owned 42,587 shares in the company, valued at $3,412,922.18. This trade represents a 21.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.00% of the stock is owned by corporate insiders.
About Unum Group (Free Report)
Unum Group (NYSE: UNM) is a leading provider of employee benefits in the United States and selected international markets, specializing in disability, life, accident and critical illness insurance. Through both fully insured and self-funded arrangements, the company offers group coverage designed to protect income and mitigate financial hardship for employees and their families. Its portfolio includes short-term and long-term disability plans, group life and accidental death & dismemberment (AD&D) policies, as well as critical illness and hospital indemnity products.
In addition to its core product lines, Unum Group markets voluntary benefits under its Colonial Life brand, allowing employees to purchase supplemental insurance such as accident, cancer, and dental coverage directly through payroll deductions.
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The market expects Unum (UNM - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis insurance company is expected to post quarterly earnings of $2.14 per share in its upcoming report, which represents a year-over-year change of +3.4%.
Revenues are expected to be $2.95 billion, down 12.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Unum?For Unum, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.89%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Unum will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Unum would post earnings of $2.07 per share when it actually produced earnings of $2.14, delivering a surprise of +3.38%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Unum doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Unum Group's premium growth, technology investments and capital returns support long-term growth, though pricing pressure and higher expenses remain risks.
Unum Group (NYSE: UNM) will release its second quarter 2026 results on July 28, 2026, at approximately 4:15 p.m. ET. The earnings release and financial suppleme
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group (NYSE: UNM) will release its second quarter 2026 results on July 28, 2026, at approximately 4:15 p.m. ET. The earnings release and financial supplement will be available in the investors section of the company's website, which can be directly accessed at https://investors.unum.com.Members of Unum Group's senior management will host a conference call on July 29, 2026, at 8:00 a.m. ET to discuss second quarter results. Topics may include forward-look.
The “Duck Stock” Keeps Quietly Making Money for ShareholdersUnum Group NYSE: UNM said it has agreed to reinsure an additional portion of its long-term care insurance liabilities, marking the company’s third major external reinsurance transaction and its second involving long-term care.
On a conference call with analysts, President and CEO Rick McKenney said the agreement will cede $3.8 billion of long-term care statutory reserves, bringing total long-term care reserves reinsured to $7 billion. He said the transactions have reduced Unum’s exposure by 40% compared with the beginning of last year.
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These 3 Insurance Stocks Made New 52-Week Highs: Still Time to Buy?The transaction is effective April 1, 2026, and is expected to close during 2026, subject to regulatory approvals and other customary closing conditions, according to Matt Royal, senior vice president of investor relations and treasury.
Deal Removes Remaining Individual LTC in Fairwind McKenney said the transaction removes all of Unum’s individual long-term care business that was originally written by Unum America and subsequently reinsured to Fairwind. The remaining liabilities in Fairwind will be group long-term care, which management said has a different risk profile.
3 Dividend Stocks Defying the Market Downturn Amid the Iran ConflictChief Financial Officer Steve Zabel said the company is reinsuring $3.8 billion of long-term care statutory reserves to Fortitude Re. Similar to Unum’s prior long-term care reinsurance deal, the biometric risk ceded to Fortitude Re will be retroceded to a highly rated global reinsurer, he said.
Zabel said the reinsured block represents 26% of Unum’s total long-term care block and 52% of its individual long-term care business. It includes about 50,000 policies with an average attained age of 76 years, compared with 86 years for the block reinsured in last year’s transaction.
The block is concentrated in active life reserves, which account for about 75% of reinsured reserves. Zabel said it also has a “materially richer benefit profile” than the business Unum will retain, with 83% of policies carrying inflation protection and 43% offering lifetime benefits.
Capital Cost and Pricing McKenney said the transaction will cost Unum $650 million of holding company excess capital, which he described as balanced against the risk reduction achieved. He also said Unum’s plan to return $1.3 billion to shareholders through dividends and share repurchases remains intact.
Zabel said management believes the most appropriate way to evaluate the transaction is relative to best estimate reserves, because that measure reflects the exposure being transferred. On that basis, he said the cost of the transaction is about 12% of best estimate reserves, compared with 10% for the 2025 transaction. The combined cost across both transactions is about 11%.
Zabel said the absolute cost relative to statutory reserves is higher because the 2026 block has a more adverse reserve profile. He said the block carries best estimate reserves nearly $700 million higher than statutory reserves, including a negative reserve margin of about $660 million.
Management said economic benefits from the deal include required capital release and tax benefits, which offset a significant portion of the gross cost. Zabel also said Unum is using temporary financing tied to future tax benefits that are expected to be realized over the next several years.
Remaining Long-Term Care Block Following the transaction, Unum’s total long-term care statutory reserves will decline from $14.8 billion to approximately $11 billion, according to Zabel. Group long-term care will represent about 70% of remaining long-term care reserves and 95% of insured lives.
Zabel said the shift toward group long-term care is “structurally important” because the group business carries less rich benefit designs, younger attained ages and lower ultimate risk than individual long-term care. He said the average daily benefit on group long-term care is about one-third of individual long-term care. He also said 77% of group long-term care policies have no inflation protection and only 7% have lifetime benefits.
Management said the transaction reduces sensitivities across key Fairwind assumptions, including premium rate increases, lapses and mortality, claim incidence, claim resolutions and interest rates. Zabel said those sensitivities decrease by 28% to 42%.
After the transaction, Fairwind will retain approximately $7.1 billion of group long-term care reserves, supported by about $2.1 billion of reserve margin and total protection of about $1.9 billion, Zabel said. Provident Life will continue to hold the remaining long-term care exposure, supported by diversification from a broader and growing product portfolio.
Capital Deployment Plans Unchanged Zabel said Unum expects year-end 2026 capital metrics to remain robust, including risk-based capital in the range of 400% to 425%, holding company liquidity of $1.5 billion to $2 billion and leverage of about 25%.
He said Unum’s 2026 capital sources and uses are unchanged, including expected capital generation of $1.4 billion to $1.6 billion and expected uses of about $1.5 billion, inclusive of roughly $1.3 billion of share repurchases and dividends.
“There is no change to our priorities, no change to our planned actions, and no change to our expected return of capital to shareholders this year as a result of the transaction,” Zabel said.
Analysts Ask About Future LTC Actions During the question-and-answer session, analysts asked whether Unum could pursue additional long-term care reinsurance transactions, including for group long-term care. McKenney said the company continues to talk to counterparties about different parts of the block but emphasized that future deals would depend on market conditions and shareholder value.
“We would like to remove that risk from our balance sheet overall,” McKenney said of long-term care. “At the same time, we’ve also been very clear to say we’ll only do so if it makes sense from a shareholder perspective.”
McKenney said Unum remains focused on its core employee benefits franchises in the U.S., U.K. and Poland while continuing to manage the closed long-term care block. He described the new agreement as “another meaningful step” in the company’s closed block strategy.
About Unum Group NYSE: UNMUnum Group NYSE: UNM is a leading provider of employee benefits in the United States and selected international markets, specializing in disability, life, accident and critical illness insurance. Through both fully insured and self-funded arrangements, the company offers group coverage designed to protect income and mitigate financial hardship for employees and their families. Its portfolio includes short-term and long-term disability plans, group life and accidental death & dismemberment (AD&D) policies, as well as critical illness and hospital indemnity products.
In addition to its core product lines, Unum Group markets voluntary benefits under its Colonial Life brand, allowing employees to purchase supplemental insurance such as accident, cancer, and dental coverage directly through payroll deductions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Effective July 9, 2026, the Unum Group (NYSE: UNM) Board of Directors declared a quarterly dividend of $0.505 per share on its common stock to be paid August 1
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Effective July 9, 2026, the Unum Group (NYSE: UNM) Board of Directors declared a quarterly dividend of $0.505 per share on its common stock to be paid August 14, 2026, to stockholders of record as of July 24, 2026. About Unum Group Unum Group (NYSE: UNM), a leading international provider of workplace benefits and services, has been helping workers and their families thrive for more than 175 years. Through its Unum and Colonial Life brands, the company offers.
Key Takeaways Unum US is UNM's largest segment, generating the majority of premium revenue, earnings and cash flow. Strong employer relationships, recurring premiums, and a diversified benefits portfolio aid profitability. Rising demand for workplace benefits, disciplined pricing and technology investments boost long-term growth. Unum Group's (UNM - Free Report) Unum US segment is its largest and most important operating business, serving as the primary driver of the company's premium revenue, earnings and cash flow. The segment provides a broad portfolio of employer-sponsored financial protection products, including group long-term and short-term disability insurance, group life and accidental death & dismemberment, voluntary benefits, individual disability, and dental and vision insurance. Products are distributed primarily through employers, independent brokers and consultants, with a strategic focus on both small and mid-sized businesses and large employer groups.
Unum US benefits from recurring premium income, strong customer retention and long-standing employer relationships, making it the cornerstone of Unum Group's financial performance. The business is also a market leader in disability insurance, leveraging underwriting expertise, claims management capabilities and integrated employee benefit solutions to generate consistent profitability. Its diversified product portfolio enables cross-selling opportunities while reducing dependence on any single product line, supporting resilient earnings across economic cycles.
The segment remains a key growth engine as employers continue to expand workplace benefits to attract and retain employees. Rising demand for income protection, voluntary benefits, leave management services, and comprehensive employee benefit solutions positions Unum US to benefit from favorable long-term workplace trends. Combined with disciplined pricing, technology investments and efficient claims administration, Unum US continues to strengthen Unum Group's competitive position and supports sustainable earnings and capital generation.
Unum US serves as Unum Group's primary earnings engine, contributing the majority of premium revenue while generating stable underwriting profits, recurring cash flows and investment income.
What About Its Peers?Selective Insurance Group, Inc. (SIGI - Free Report) has a strong presence in the standard commercial lines market, focusing primarily on small and middle-market businesses. Selective Insurance continues to expand its Standard Commercial Lines footprint with the goal of a near national presence, while maintaining an agent-driven distribution model. Standard Commercial Lines is the core revenue driver for Selective Insurance Group, making it the company's primary earnings engine. It generates the majority of the company's premium revenues and serves as the foundation of the long-term growth strategy.
Kinsale Capital Group, Inc. (KNSL - Free Report) focuses exclusively on the excess and surplus lines (E&S) market in the United States. Kinsale Capital's Excess and Surplus Lines Insurance segment is the company's sole operating business and core growth engine. Its specialization in hard-to-place commercial risks, combined with disciplined underwriting and technology-driven efficiency, has enabled the company to generate industry-leading underwriting profitability consistently. The E&S Lines Insurance segment is the foundation of Kinsale Capital's business model. It aids the company by providing pricing flexibility, higher underwriting margins, premium growth opportunities, operational efficiency and a defensible competitive niche.
UNM’s Price PerformanceShares of UNM have gained 15.1% in the year-to-date period, outperforming the industry.
Image Source: Zacks Investment Research
UNM’s UndervaluationThe stock is undervalued compared with its industry. Its forward price-to-book value of 1.31X is lower than the industry average of 1.78X. It carries a Value Score of B.
Image Source: Zacks Investment Research
Estimate Movement for UNMThe Zacks Consensus Estimate for UNM’s second-quarter 2026 EPS has moved down 0.4% in the past 60 days. The same for the full-year 2026 and 2027 EPS has moved up 0.4% and moved down 0.6%, respectively, in the past 60 days.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Chattanooga, Unum (UNM - Free Report) is a Finance stock that has seen a price change of 15.5% so far this year. The insurance company is paying out a dividend of $0.46 per share at the moment, with a dividend yield of 2.06% compared to the Insurance - Accident and Health industry's yield of 1.36% and the S&P 500's yield of 1.34%.
Looking at dividend growth, the company's current annualized dividend of $1.84 is up 4.5% from last year. Over the last 5 years, Unum has increased its dividend 4 times on a year-over-year basis for an average annual increase of 9.80%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Unum's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UNM for this fiscal year. The Zacks Consensus Estimate for 2026 is $8.77 per share, representing a year-over-year earnings growth rate of 7.87%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, UNM is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Unum Group (UNM) M&A Call July 6, 2026 8:00 AM EDT
Company Participants
J. Royal - Senior Vice President of Investor Relations & Treasury
Richard McKenney - President, CEO & Director
Steven Zabel - Executive VP & CFO
Conference Call Participants
Joel Hurwitz - Dowling & Partners Securities, LLC
Wesley Carmichael - Wells Fargo Securities, LLC, Research Division
Taylor Scott - Barclays Bank PLC, Research Division
Thomas Gallagher - Evercore ISI Institutional Equities, Research Division
Tracy Benguigui - Wolfe Research, LLC
Nathan Satterfield - Jefferies LLC, Research Division
Michael Ward - UBS Investment Bank, Research Division
Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division
Presentation
Operator
Thank you for standing by, and welcome to the Unum Closed Block Update Conference Call. [Operator Instructions]
I'd now like to turn the call over to Matt Royal, Investor Relations. You may begin.
J. Royal
Senior Vice President of Investor Relations & Treasury
Thank you, and good morning. I hope everyone had a good holiday weekend. Earlier today, Unum announced we have entered into an agreement to cede a portion of Long-Term Care policies effective April 1, 2026. The transaction is expected to close during 2026, subject to receipt of required regulatory approvals and satisfaction or waiver of other customary closing conditions. The press release announcing the transaction and supporting materials for today's call have been made available on the Investors section of our website at www.unum.com.
Let me briefly take care of the safe harbor statement before we jump in. Today's call may include forward-looking statements, and actual results may differ materially, and we are not obligated to update any of these statements. Please refer to our earnings release and our periodic filings with the SEC for a description of factors that could cause actual results to differ from expected results.
Participating in this morning's conference call are
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group (NYSE: UNM) announced today that its Unum Life Insurance Company of America subsidiary (“Unum America”) has entered into an agreement to cede to Fortitude Reinsurance Company Ltd. (“Fortitude Re”), on a coinsurance basis, certain individual long-term care (“LTC”) insurance policies representing $3.8 billion of statutory reserves in Fairwind Insurance Company, a wholly owned subsidiary of Unum (“Fairwind”). At closing, Unum America will recapture t.
HAMILTON, Bermuda--(BUSINESS WIRE)--Fortitude Re announced today the signing of a $3.8 billion reinsurance transaction between its subsidiary, Fortitude Reinsurance Company Ltd. (“FRL”) and Unum Life Insurance Company of America (“Unum”), a subsidiary of Unum Group (NYSE: UNM). Upon receipt of regulatory approvals and subject to satisfaction or waiver of certain other customary closing conditions, Unum will recapture from Fairwind Insurance Company ("Fairwind"), a wholly-owned subsidiary of Unu.
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group (NYSE: UNM) has promoted Andrew Walker to Executive Vice President, Chief Customer Operations Officer. In this role, Walker will continue to lead the company's Customer Operations organization, overseeing the teams, capabilities and transformation efforts that support how Unum Group shows up for customers, partners and the businesses it serves. “Andrew has quickly made an impact by strengthening the way we serve customers and run our operations,”.
Key Takeaways UNM expects 2026 premium growth of 4-7% and adjusted operating EPS of $8.60-$8.90.Unum is investing in digital capabilities and operational transformation to support growth.UNM repurchased $402.4M of shares in Q1 despite pressure from rising expenses and weaker segments. Shares of Unum Group (UNM - Free Report) have gained 16.8% in the past year, outperforming the industry’s growth of 15.4%. The company’s share price closed at $91.62 on Wednesday and it is trading near its 52-week high of $93.22. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
Strong premium growth, favorable disability claims experience, robust sales momentum and aggressive capital returns to shareholders through buybacks and dividends are driving the UNM stock performance. Earnings have grown 10.6% in the past five years, outperforming the industry average of 0.6%.
Shares of other insurers include AMERISAFE, Inc. (AMSF - Free Report) , which has lost 28.8%, while Globe Life Inc. (GL - Free Report) and Aflac Incorporated (AFL - Free Report) have gained 43% and 13.2%, respectively, in the past year.
1-Year Performance: UNM, AMSF, GL, AFL & Industry
Image Source: Zacks Investment Research
UNM’s Average Target Price Suggests UpsideBased on short-term price targets offered by 13 analysts, the Zacks average price target is $96.77 per share. The average suggests a potential 5.6% upside from the last closing price.
Image Source: Zacks Investment Research
UNM’s Attractive ValuationUnum Group’s shares are trading at a discount compared to the industry. Its price-to-book value of 1.34X is lower than the industry average of 1.73X, the Finance sector’s 4.53X and the Zacks S&P 500 Composite’s 8.02X.
Image Source: Zacks Investment Research
Zack Consensus Estimates of UNMThe Zacks Consensus Estimate for Unum Group’s 2026 revenues is pegged at $11.9 billion, implying a year-over-year decline of 10.3%, while 2026 EPS indicates a year-over-year increase of 7.8%.
The consensus estimate for 2027 earnings per share (EPS) and revenues indicates an increase of 10.4% and 4.1%, respectively, from the corresponding 2026 estimates.
The expected long-term earnings growth rate is 11.3%, better than the industry average of 9.7%.
Mixed Analyst Sentiment for UNMTwo of the three analysts have raised estimates for 2026, while one analyst has decreased estimates for 2027, with no upward movement over the past 30 days. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings has moved north 0.3% and south 0.3%, respectively, over the same period.
What Drives UNM?Premiums, the primary component of UNM’s top line, continue to benefit from its healthy in-force block growth and higher sales. In 2026, Unum Group anticipates total premium growth of 4-7%, driven by persistency, new sales, employment and salary growth, and the effectiveness of a renewal program. UNM expects adjusted operating income per share to be between $8.60 and $8.90, indicating growth of about 8-12%.
Unum Group remains focused on expanding its core businesses through continued investments in technology and operational transformation. The company is enhancing digital capabilities, customer engagement and broker experience to better address evolving customer needs. Management expects these initiatives to support robust premium growth and earnings expansion in 2026.
Unum Group is poised to grow on the operational excellence of Unum U.S. and Colonial Life. Unum U.S. continues to benefit from disciplined sales trends, strong persistency in group lines, strong large-case sales and favorable disability claims experience. Growth in voluntary benefits also supported results, while sales momentum was fueled by new customers in the large-case market and continued strength among existing core-market clients.
Operating income in the Colonial Life Segment has risen over the last few years, banking on improving premium income and favorable risk results. The company's conservative pricing and reserving practices have contributed to its overall profitability. Premium income should continue to increase due to prior period sales across all product lines. Management remains focused on moving toward a mix of businesses with higher growth and stable margins.
Unum Group enjoys a solid capital position and substantial statutory earnings and capital, leading to financial flexibility. The company has consistently enhanced shareholders’ value through dividend hikes and share buybacks.
Risks for UNMCompetitive pricing in the group disability market remains a key risk, as intense competition could pressure premium rates and constrain underwriting margins.
Unum Group has been witnessing a rise in total benefits and expenses over the past few years, inducing margin contraction. UNM expects the adjusted operating expense ratio to be 22%.
Performance at the Closed Block and Corporate segments has also been disappointing over the past few quarters.
End NoteFavorable sales trends, strong persistency, solid capital position and effective capital deployment should continue to favour UNM over the long term. However, competitive pricing in the group disability market, weak performance at the Closed Block and Corporate segments, and a rise in total benefits and expenses over the past few years remain concerns.
The company has an impressive dividend track record, having increased dividends 19 times in the last 17 years and yielding better than the industry average, making it an attractive pick for yield-seeking investors.
The insurer should continue to gain from premium growth, dividend history and the attractive valuation of the stock. It is, therefore, wise to retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of Unum Group (NYSE: UNM) in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 24,491 shares of the financial services provider's stock, valued at approximately $1,898,000. Several other hedge funds
Mirae Asset Global Investments Co. Ltd. decreased its stake in shares of Unum Group (NYSE: UNM) by 7.5% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 139,175 shares of the financial services provider's stock after selling 11,316 shares during the period. Mirae
Unum (UNM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Unum Group is rated Hold with a $52/share price target due to limited upside at current valuation. UNM's 9-10x P/E and 2.38% yield offer little premium over risk-free rates, requiring substantial growth or premiumization to justify higher multiples. Persistent LTC block risks, high disability claim incidence, and diversification into lower-margin lines constrain valuation expansion.
Cwm LLC cut its position in Unum Group (NYSE: UNM) by 29.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 30,257 shares of the financial services provider's stock after selling 12,621 shares during the period. Cwm LLC's holdings
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group (NYSE: UNM) today reported net income of $232.0 million ($1.41 per diluted common share) for the first quarter of 2026, compared to net income of $189.1 million ($1.06 per diluted common share) for the first quarter of 2025. Included in net income for the first quarter of 2026 is a net after-tax investment loss on the Company's investment portfolio of $4.0 million ($0.03 per diluted common share) and the Closed Block segment after-tax adjusted ope.
Unum (UNM) came out with quarterly earnings of $2.14 per share, beating the Zacks Consensus Estimate of $2.07 per share. This compares to earnings of $2.04 per share a year ago.
While the top- and bottom-line numbers for Unum (UNM) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group has appointed Steve Jones as president of Colonial Life, effective June 8. In this role, Jones will lead Colonial Life's business performance and long-term strategy and report to Rick McKenney, president and chief executive officer at Unum Group. As part of a planned transition, Jones will succeed Tim Arnold, who will retire in July after a 41-year career with Unum Group, including the last 11 years as president of Colonial Life. “Colonial Life is.
Accident and Health Insurance stocks like AFL, UNM, GL, TRUP and EIG are set to gain from rising underwriting exposure and accelerated digitalization. However, pricing pressure is a concern given rising medical costs and inflation.
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group (NYSE: UNM) announced today that its board of directors has authorized an increase of approximately 10 percent in the quarterly dividend paid on its common stock. The new rate of 50.5 cents per common share, or $2.02 per share on an annual basis, will be effective with the dividend expected to be paid in the third quarter of 2026. # # # Forward-Looking Statements Certain statements in this release constitute “forward-looking statements” within the.
Unum Group (NYSE: UNM) announced today that its board of directors has authorized an increase of approximately 10 percent in the quarterly dividend paid on its
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group (NYSE: UNM) today announced that Kristi Matus was elected to its board of directors last week at the company's 2026 annual meeting of shareholders. In addition, she was appointed to serve on the audit committee and the risk and finance committee of the board. Matus brings more than 30 years of leadership and board experience across financial services, healthcare, and technology. Her background includes leading enterprise finance organizations, ove.
Unum Group (NYSE: UNM) today announced that Kristi Matus was elected to its board of directors last week at the company's 2026 annual meeting of shareholders.
Despite a whiplash-inducing correction following the start of the Iran war, the S&P 500 is now up around 10% year-to-date (YTD). But the rally has been narrow, and the market has become sharply divided between stocks with AI connections and those without, which puts the insurance sector in perilous territory.
