Unum Group Statistical Supplement Second Quarter 2025 TABLE OF CONTENTS (in millions of dollars, except share data and where noted) Interim Results are Unaudited | | Page | | --- | --- | | Financial Highlights | 1 | | Capital Metrics | 2 | | Ratings | 3 | | Consolidated Statements of Income | 4 | | Sales Data by Segment | 5 | | Consolidated Balance Sheets | 6 | | Financial Results by Segment | 7 | | Quarterly Historical Financial Results by Segment | 8 | | Financial Results and Selected Statistics by Segmen ...

Group 1: Earnings Performance - Unum reported quarterly earnings of $2.07 per share, missing the Zacks Consensus Estimate of $2.23 per share, and down from $2.16 per share a year ago, representing an earnings surprise of -7.17% [1] - Over the last four quarters, Unum has surpassed consensus EPS estimates just once [2] - The company posted revenues of $3.38 billion for the quarter, exceeding the Zacks Consensus Estimate by 1.72%, compared to $3.24 billion in the same quarter last year [2] Group 2: Stock Performance and Outlook - Unum shares have increased approximately 9.7% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $2.30 on revenues of $3.3 billion, and for the current fiscal year, it is $8.88 on revenues of $13.23 billion [7] - The estimate revisions trend for Unum was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Insurance - Accident and Health industry, to which Unum belongs, is currently in the bottom 30% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) Q2 2025 saw premium income growth, but net income and adjusted operating return on equity declined, while the risk-based capital ratio improved Consolidated U.S. GAAP Results (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Premium Income** | $2,748.0 | $2,627.2 | $5,450.9 | $5,237.5 | | **Adjusted Operating Revenue** | $3,379.1 | $3,243.8 | $6,677.5 | $6,445.3 | | **Total Revenue** | $3,361.4 | $3,233.4 | $6,453.0 | $6,433.7 | | **Net Income** | $335.6 | $389.5 | $524.7 | $784.7 | | **Net Income Per Share (Diluted)** | $1.92 | $2.05 | $2.97 | $4.09 | - The weighted average risk-based capital ratio for traditional U.S. life insurance companies was approximately **485%** as of June 30, 2025, an increase from **~470%** a year prior[5](index=5&type=chunk) Adjusted Operating Return on Equity by Segment | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Unum US** | 22.5% | 25.5% | 22.6% | 26.3% | | **Unum International** | 17.4% | 17.6% | 16.1% | 16.0% | | **Colonial Life** | 18.6% | 20.1% | 18.7% | 20.0% | | **Consolidated** | 11.3% | 13.1% | 11.4% | 13.2% | [Capital Metrics](index=4&type=section&id=Capital%20Metrics) Book value per share increased, share repurchases were substantial, the leverage ratio rose, and holding company liquidity improved Book Value Per Share | Metric | 6/30/2025 | 6/30/2024 | | :--- | :--- | :--- | | **Total Stockholders' Equity (Book Value)** | $65.76 | $55.63 | | **Excluding AOCI** | $77.62 | $70.76 | - The company repurchased **3.8 million shares** at a cost of **$303.3 million** in Q2 2025, compared to **3.5 million shares** for **$179.8 million** in Q2 2024[6](index=6&type=chunk) - The leverage ratio stood at **23.0%** as of June 30, 2025, up from **21.8%** a year earlier. Holding company liquidity increased to **$1,956 million** from **$1,281 million** over the same period[6](index=6&type=chunk) [Ratings](index=5&type=section&id=Ratings) The company maintains stable credit and financial strength ratings from major agencies including AM Best, Fitch, Moody's, and S&P Unum Group Credit and Financial Strength Ratings | Agency | Senior Unsecured Debt | Financial Strength (Provident Life) | Outlook | | :--- | :--- | :--- | :--- | | **AM Best** | bbb+ | A | Stable | | **Fitch** | BBB | A | Positive | | **Moody's** | Baa2 | A2 | Stable | | **S&P** | BBB | A | Stable | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements provide an overview of the company's income and balance sheet performance across reporting periods [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 total revenue increased, driven by premium income, but net income declined due to significantly higher policy benefits Consolidated Income Statement Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Premium Income** | $2,748.0 | $2,627.2 | | **Total Revenue** | $3,361.4 | $3,233.4 | | **Policy Benefits** | $1,976.1 | $1,809.5 | | **Total Benefits and Expenses** | $2,944.4 | $2,737.9 | | **Net Income** | $335.6 | $389.5 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$62.8 billion** and stockholders' equity grew to **$11.3 billion** as of June 30, 2025, driven by retained earnings Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Investments** | $45,689.8 | $45,706.3 | | **Total Assets** | $62,843.8 | $61,959.3 | | **Total Liabilities** | $51,523.8 | $50,998.2 | | **Total Stockholders' Equity** | $11,320.0 | $10,961.1 | - The segment balance sheet shows Unum US and the Closed Block hold the largest portions of total assets, with **$14.8 billion** and **$33.3 billion** respectively as of June 30, 2025[24](index=24&type=chunk) [Sales Data by Segment](index=7&type=section&id=Sales%20Data%20by%20Segment) Sales performance across Unum US, Unum International, and Colonial Life segments is presented, highlighting product and regional trends [Unum US Segment Sales](index=7&type=section&id=Unum%20US%20Segment%20Sales) Unum US segment sales decreased **16.2%** to **$262.4 million** in Q2 2025, with broad declines in Group Long-term Disability and Voluntary Benefits Unum US Sales by Product (in millions) | Product | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Group Long-term Disability** | $45.1 | $64.8 | (30.4)% | | **Group Short-term Disability** | $39.3 | $42.3 | (7.1)% | | **Group Life and AD&D** | $77.2 | $81.9 | (5.7)% | | **Voluntary Benefits** | $62.2 | $79.5 | (21.8)% | | **Total Sales** | $262.4 | $313.2 | (16.2)% | [Unum International Segment Sales](index=8&type=section&id=Unum%20International%20Segment%20Sales) Unum International sales increased **1.1%** to **$65.0 million** in Q2 2025, primarily due to **64.0%** growth in Unum Poland, despite Unum UK's decline Unum International Sales (in millions) | Region | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Unum UK (USD)** | $50.9 | $55.7 | (8.6)% | | **Unum Poland (USD)** | $14.1 | $8.6 | 64.0% | | **Total Sales (USD)** | $65.0 | $64.3 | 1.1% | - In local currency, Unum UK sales decreased by **13.5%** to **£38.3 million** in Q2 2025 from **£44.3 million** in Q2 2024[14](index=14&type=chunk) [Colonial Life Segment Sales](index=9&type=section&id=Colonial%20Life%20Segment%20Sales) Colonial Life segment sales increased **2.9%** to **$126.5 million** in Q2 2025, with growth across all product lines, including **4.0%** in Cancer and Critical Illness Colonial Life Sales by Product (in millions) | Product | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Accident, Sickness, and Disability** | $78.0 | $75.8 | 2.9% | | **Life** | $30.5 | $29.8 | 2.3% | | **Cancer and Critical Illness** | $18.0 | $17.3 | 4.0% | | **Total Sales** | $126.5 | $122.9 | 2.9% | [Financial Results by Segment](index=14&type=section&id=Financial%20Results%20by%20Segment) Detailed financial performance and key metrics for each operating segment are presented in this section [Segment Overview](index=14&type=section&id=Segment%20Overview) Q2 2025 adjusted operating revenue grew **4.2%**, but income before tax and net investment loss fell **14.1%**, mainly due to Unum US and Closed Block declines Adjusted Operating Revenue by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Unum US** | $2,011.7 | $1,947.2 | 3.3% | | **Unum International** | $317.6 | $267.3 | 18.8% | | **Colonial Life** | $505.0 | $486.9 | 3.7% | | **Closed Block** | $512.8 | $527.7 | (2.8)% | | **Total** | $3,379.1 | $3,243.8 | 4.2% | Income (Loss) Before Income Tax and Net Investment Loss by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Unum US** | $318.2 | $357.5 | (11.0)% | | **Unum International** | $41.6 | $42.5 | (2.1)% | | **Colonial Life** | $117.4 | $116.9 | 0.4% | | **Closed Block** | $(10.8) | $34.3 | (131.5)% | | **Corporate** | $(31.7) | $(45.3) | (30.0)% | [Quarterly Historical Financial Results by Segment](index=16&type=section&id=Quarterly%20Historical%20Financial%20Results%20by%20Segment) Q2 2025 adjusted operating revenue increased sequentially, but income before tax and net investment loss decreased, mainly from the Closed Block segment Quarterly Income (Loss) Before Income Tax and Net Investment Loss (in millions) | Segment | Q2 2025 | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | :--- | | **Unum US** | $318.2 | $329.1 | $333.2 | | **Unum International** | $41.6 | $38.7 | $37.6 | | **Colonial Life** | $117.4 | $115.7 | $122.7 | | **Closed Block** | $(10.8) | $8.0 | $12.5 | | **Total** | $434.7 | $450.4 | $455.6 | [Unum US Segment](index=18&type=section&id=Unum%20US%20Segment) Unum US adjusted operating income declined to **$318.2 million** in Q2 2025, primarily due to a higher benefit ratio of **60.7%**, despite premium income growth Unum US Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Premium Income** | $1,798.6 | $1,730.9 | | **Adjusted Operating Income** | $318.2 | $357.5 | | **Benefit Ratio** | 60.7% | 58.2% | [Unum US Group Disability](index=19&type=section&id=Unum%20US%20Group%20Disability) Group Disability adjusted operating income declined to **$124.8 million** in Q2 2025, primarily from a benefit ratio increase to **62.2%**, with flat premium income Group Disability Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Premium Income** | $797.1 | $797.8 | | **Adjusted Operating Income** | $124.8 | $153.2 | | **Benefit Ratio** | 62.2% | 59.1% | [Unum US Group Life and Accidental Death & Dismemberment](index=20&type=section&id=Unum%20US%20Group%20Life%20and%20Accidental%20Death%20%26%20Dismemberment) Group Life and AD&D adjusted operating income declined to **$70.2 million** in Q2 2025, as the benefit ratio rose to **69.7%**, outweighing premium income growth Group Life and AD&D Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Premium Income** | $519.2 | $493.9 | | **Adjusted Operating Income** | $70.2 | $89.1 | | **Benefit Ratio** | 69.7% | 65.4% | [Unum US Supplemental and Voluntary](index=21&type=section&id=Unum%20US%20Supplemental%20and%20Voluntary) Supplemental and Voluntary adjusted operating income rose to **$123.2 million** in Q2 2025, driven by **9.8%** growth in total premium income to **$482.3 million** Supplemental and Voluntary Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Premium Income** | $482.3 | $439.2 | | **Adjusted Operating Income** | $123.2 | $115.2 | | **Adjusted Operating Income Ratio** | 25.5% | 26.2% | [Unum International Segment](index=22&type=section&id=Unum%20International%20Segment) Unum International adjusted operating income was flat at **$41.6 million** in Q2 2025, with **18.5%** premium income growth offset by increased policy benefits Unum International Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Premium Income** | $271.1 | $228.8 | | **Adjusted Operating Income** | $41.6 | $42.5 | [Unum UK](index=23&type=section&id=Unum%20UK) Unum UK's adjusted operating income (local currency) declined to **£29.4 million** in Q2 2025, as the benefit ratio rose to **75.0%**, despite **10.0%** premium income growth Unum UK Financial Summary (in millions of pounds) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Premium Income** | £166.9 | £151.8 | | **Adjusted Operating Income** | £29.4 | £32.5 | | **Benefit Ratio** | 75.0% | 69.5% | [Colonial Life Segment](index=24&type=section&id=Colonial%20Life%20Segment) Colonial Life segment maintained stable adjusted operating income of **$117.4 million** in Q2 2025, with **3.6%** premium income growth and a steady **48.3%** benefit ratio Colonial Life Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Premium Income** | $462.1 | $446.2 | | **Adjusted Operating Income** | $117.4 | $116.9 | | **Benefit Ratio** | 48.3% | 47.8% | [Closed Block Segment](index=25&type=section&id=Closed%20Block%20Segment) Closed Block segment results deteriorated significantly, with adjusted operating income falling to **$3.9 million** and a **$10.8 million** pre-tax loss in Q2 2025 due to higher policy benefits Closed Block Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Premium Income** | $216.2 | $221.3 | | **Income (Loss) Before Income Tax** | $(10.8) | $34.3 | | **Adjusted Operating Income** | $3.9 | $51.6 | [Corporate Segment](index=26&type=section&id=Corporate%20Segment) Corporate segment's adjusted operating loss improved to **$31.7 million** in Q2 2025, driven by net investment income more than doubling to **$32.3 million** Corporate Segment Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Investment Income** | $32.3 | $14.3 | | **Adjusted Operating Loss** | $(31.7) | $(45.3) | [Investments](index=27&type=section&id=Investments) The company's investment portfolio details asset allocation, yield, duration, and credit quality, highlighting fixed maturity securities - As of June 30, 2025, the investment portfolio is dominated by fixed maturity securities, which have a fair value of **$36.0 billion**. The portfolio has an earned book yield of **4.47%** and an average duration of **8.17 years**[57](index=57&type=chunk) - The quality of the fixed maturity securities portfolio remains high, with **96.0%** rated 'Baa' or better based on fair value[57](index=57&type=chunk) - The fixed maturity securities portfolio had a net unrealized loss of **$2.0 billion** as of June 30, 2025. The largest unrealized losses were in the U.S. Government & Municipalities and Consumer Non-Cyclical sectors[59](index=59&type=chunk) [Appendix to Statistical Supplement](index=29&type=section&id=Appendix%20to%20Statistical%20Supplement) The appendix details significant financial items and reconciles non-GAAP financial measures to their GAAP equivalents [Significant Items](index=29&type=section&id=Significant%20Items) Major financial events are outlined, including a **$175.9 million** net investment loss in Q1 2025 from a reinsurance transaction and 2024 reserve assumption updates - In 2025, the company recorded a net investment loss of **$175.9 million** pre-tax in Q1 and **$8.5 million** pre-tax in Q2 related to an anticipated reinsurance transaction with Fortitude Reinsurance Company Ltd[62](index=62&type=chunk) - In Q3 2024, the company had reserve assumption updates resulting in a net reserve decrease of **$357.4 million** before tax[65](index=65&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures, such as adjusted operating revenue and after-tax adjusted operating income, are used to clarify business trends, with detailed reconciliations provided - The company believes non-GAAP measures like 'after-tax adjusted operating income' are better indicators of profitability and underlying business trends by excluding volatile or non-recurring items[67](index=67&type=chunk) - Key exclusions from GAAP net income to arrive at after-tax adjusted operating income include: net investment gains/losses, amortization of the cost of reinsurance, non-contemporaneous reinsurance, and reserve assumption updates[72](index=72&type=chunk)[88](index=88&type=chunk)[91](index=91&type=chunk) - Detailed reconciliation tables are provided to bridge GAAP measures like Total Revenue and Net Income to non-GAAP measures like Adjusted Operating Revenue and After-tax Adjusted Operating Income[74](index=74&type=chunk)[76](index=76&type=chunk)[88](index=88&type=chunk)

Core Insights - Unum Group (UNM) is expected to report second-quarter 2025 earnings on July 29, with anticipated improvements in both revenue and earnings compared to the previous year [1][2] - The Zacks Consensus Estimate for UNM's first-quarter revenues is $3.32 billion, reflecting a 2.4% growth year-over-year [1] - The consensus estimate for earnings is $2.23 per share, indicating a year-over-year increase of 3.2% despite a recent downward adjustment of 8 cents in the past 30 days [2] Earnings Prediction Model - The current Earnings ESP for UNM is -0.79%, as the Most Accurate Estimate of $2.21 is lower than the Zacks Consensus Estimate of $2.23, indicating uncertainty in predicting an earnings beat [3] - UNM holds a Zacks Rank of 3, suggesting a hold position [4] Factors Influencing Q2 Results - Premium income is projected at $2.7 billion, representing a 3% increase from the previous year, driven by favorable persistency and improved sales across operating segments [5] - Net investment income is estimated at $543.7 million, supported by higher miscellaneous investment income and increased invested assets, compared to the Zacks Consensus Estimate of $524 million [6] - Performance in Unum U.S. and Colonial Life is expected to benefit from higher premium income and improved benefit experiences across various product lines [7] Segment Revenue Estimates - Unum US operating revenues are estimated at $2 billion, while Colonial Life is projected at $501 million [8] - Unum International is expected to generate $290.2 million in operating revenues, benefiting from expansion and improved performance in its product lines [8] Expense Considerations - Total benefits and expenses are anticipated to reach $2.8 billion, influenced by increased policy benefits, commissions, and other costs [10] - Continued share buybacks are likely to positively impact the bottom line [10]

Core Viewpoint - Wall Street anticipates a year-over-year increase in Unum's earnings driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Unum is expected to report quarterly earnings of $2.23 per share, reflecting a 3.2% increase year-over-year, with revenues projected at $3.32 billion, up 2.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.25% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12]. Earnings Surprise Prediction - The Zacks Earnings ESP for Unum is -0.79%, suggesting a lower Most Accurate Estimate compared to the Zacks Consensus Estimate, complicating predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Unum's expected earnings were $2.19 per share, but the actual earnings were $2.04, resulting in a surprise of -6.85%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13][14]. Investment Considerations - While Unum does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions related to the stock [17].

Core Insights - Unum Group (UNM) shares have increased by 9.6% year to date, outperforming the Finance sector and the Zacks S&P 500 Composite, which grew by 8.4% and 5.9% respectively [1] - The company's market capitalization stands at $14.07 billion, with an average trading volume of 1.25 million shares over the last three months [1] Valuation Metrics - Unum Group's shares are trading at a forward price-to-book value of 1.25X, which is lower than the industry average of 1.83X, the Finance sector's 4.26X, and the Zacks S&P 500 Composite's 8.42X [3] - The company has a Value Score of A, indicating it is considered affordable compared to its peers [3] Growth Projections - The Zacks Consensus Estimate for Unum Group's 2025 revenues is $13.2 billion, reflecting a year-over-year increase of 2.8% [8] - Expected earnings per share for 2026 indicate a growth of 9.1%, while revenues are projected to increase by 3.5% from 2025 estimates [8] - Long-term earnings growth is anticipated at 7.2%, surpassing the industry average of 6% [8] Analyst Sentiment - The average price target for UNM shares is $94.43, suggesting a potential upside of 17.4% from the last closing price [9] - However, analysts have recently lowered their earnings estimates for 2025 and 2026 by 0.3% and 0.1% respectively over the past 60 days [12] Dividend Performance - Unum Group raised its dividend by 10% in May 2025, marking the 16th increase in 15 years, with a projected payout of $300–$330 million and a payout ratio of approximately 19.4% [12] - The dividend yield stands at 2.1%, slightly above the industry average, making it attractive for income-focused investors [12] Operational Performance - Premium income rose by 3.5% year over year to $2.7 billion in Q1 2025, driven by growth in core segments and the recapture of a previously ceded individual disability block [15] - The company projects sales growth of 5–10%, premium growth of 4%-7%, and a 6–10% increase in after-tax adjusted operating EPS for 2025 [15] - Unum U.S. and Colonial Life segments have shown consistent growth in operating income, with Colonial Life's adjusted operating income up 1.8% to $115.7 million in Q1 2025 [16] Financial Stability - Unum Group maintains a solid capital position, enhancing its financial flexibility and supporting prudent capital outlay [17] - The company has faced challenges such as rising expenses, declining premiums in the Closed Block segment, and muted growth in investment income due to past low-rate investments [18]

Core Viewpoint - Unum Group's shares have increased by approximately 60% over the past year due to strong performance in its growth businesses and reduced concerns regarding its legacy insurance policies [1] Group 1: Company Performance - Unum Group closed a significant transaction on July 1st, indicating active management and strategic positioning [1] - The company's growth businesses are performing well, contributing to the overall positive stock performance [1] Group 2: Market Sentiment - Fears surrounding Unum Group's legacy, toxic insurance policies have lessened, which has positively impacted investor sentiment [1]

Core Insights - Unum Group (UNM) shares are trading at a discount compared to the Zacks Accident and Health Insurance industry, with a forward price-to-book value of 1.23X, lower than the industry average of 1.82X, the Finance sector's 4.16X, and the Zacks S&P 500 Composite's 8.1X [1] - The company has a market capitalization of $13.93 billion and an average trading volume of 1.4 million shares over the last three months [1] Performance Comparison - Unum Group shares have surged 63.5% in the past year, outperforming the industry growth of 27.1%, the Finance sector's 20.4%, and the Zacks S&P 500 composite's 10.8% [3] Technical Analysis - Shares closed at $79.25, near a 52-week high of $84.48, indicating strong investor confidence and potential for further price appreciation [5] - The stock is trading above the 50-day and 200-day simple moving averages of $78.88 and $72.31, respectively, suggesting solid upward momentum [5] Growth Projections - For 2025, Unum U.S. expects sales growth of 5-10% and an adjusted operating return on equity (ROE) of 23-25% [8] - The Zacks Consensus Estimate for Unum Group's 2025 revenues is $13.24 billion, reflecting a year-over-year improvement of 2.7% [10] - Long-term earnings growth is expected at 7.2%, outperforming the industry average of 6% [11] Analyst Sentiment - The average price target for UNM is $92.43 per share, suggesting a potential upside of 17.5% from the last closing price [12] - Recent analyst sentiment has shown some bearish trends, with three of eight analysts lowering estimates for 2025 and two for 2026 [16] Revenue and Premium Growth - Premiums are expected to grow due to healthy in-force block growth and higher sales, with projected sales growth of 5-10% and premium growth of 4-7% in 2025 [17][19] - Unum Group's operational excellence in its two largest segments, Unum U.S. and Colonial Life, is expected to drive growth [18] Dividend History - Unum Group has consistently increased shareholder value through dividend hikes, with a 15% increase effective in Q3 2024, marking the 15th hike in the last 14 years [20] - The dividend yield stands at 2.12%, making it attractive for yield-seeking investors [20] Conclusion - Favorable sales trends, strong persistency, and a solid capital position are expected to benefit Unum Group in the long term, making it a wise investment choice [21]

Core Viewpoint - Unum Group has approved a 10% increase in its dividend, making it an attractive option for yield-seeking investors due to its higher dividend yield compared to the industry average [1][2]. Group 1: Dividend and Capital Deployment - The recent dividend hike marks the 16th increase in the last 15 years, with a 10-year CAGR of 10.8% [2]. - The company estimates a dividend payout of $300-$330 million in 2025 [2]. - Unum Group has a strong capital and liquidity position, supported by cash flow generation, which instills confidence in its capital deployment strategy [2][4]. Group 2: Share Buybacks - Unum Group has been actively buying back shares, with a $200 million repurchase in Q1 2025 and plans for at least the same amount in Q2 [3]. - A $1 billion buyback program was approved, starting on April 1, 2025, with expectations to buy back $0.5-$1 billion in shares throughout 2025 [3]. Group 3: Operational Performance - Unum Group is the leading disability income writer and the second-largest writer of voluntary business in the U.S., demonstrating strong operating performance across key insurance segments [5]. - The two primary divisions, Unum U.S. and Colonial Life, have shown ongoing growth in operating income, driven by disciplined sales efforts and increasing premium income [6]. Group 4: Growth Projections - The company forecasts high-single-digit sales growth and 4% to 7% premium growth over the long term, with earnings growth expected between 6% and 10% for 2025 [7]. - Unum Group maintains a robust capital position, with a return on equity of 14.2%, although it lags behind the industry average of 15.5% [7]. Group 5: Stock Performance and Valuation - Shares of Unum Group have gained 6.5%, outperforming the industry growth of 2% and the sector's return of 3.9% [8]. - The current price-to-book multiple is 1.24, above its five-year median of 0.87, indicating that the shares are relatively expensive [9]. - Compared to other insurers like Prudential Financial Inc and Lincoln National Corporation, Unum Group shares are also considered expensive [10]. Group 6: Analyst Sentiment - The Zacks average price target for Unum Group is $92.36 per share, suggesting a potential 16% upside from the last closing price [12]. - However, the consensus estimates for 2025 and 2026 earnings have seen slight declines of 0.7% and 0.6%, reflecting analysts' muted sentiment [12].

Core Insights - Unum Group (NYSE: UNM) has shown strong performance, trading near 52-week highs and outperforming most large-cap financials since the previous analysis in November 2024 [1] Financial Performance - The company has made significant strides in de-risking efforts and has delivered impressive shareholder returns [1] Market Position - Unum Group's stock has been positively received in the market, indicating strong investor confidence and interest [1]