Unum(US:UNM) ZACKS·2025-12-15 16:31Core 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 1.2X, lower than the industry average of 1.75X, the Finance sector's 4.28X, and the Zacks S&P 500 Composite's 8.49X [1] - The company has a market capitalization of $13.13 billion and an average trading volume of 1.3 million shares over the last three months [1] Price Performance - Unum Group shares have increased by 4.8% over the past year, while the industry has grown by 6.3% [3] - The stock closed at $77.12, near its 52-week high of $84.48, indicating strong investor confidence and upward momentum as it trades above the 50-day and 200-day simple moving averages of $75.95 and $77.10, respectively [4] Growth Projections - The Zacks Consensus Estimate for Unum Group's 2025 revenues is $13.19 billion, reflecting a year-over-year improvement of 2.3% [5] - The company anticipates premium growth of 3-6% in 2025, with an operating return on equity (ROE) of 21-23% and earnings per share (EPS) of approximately $8.50 [8][13] Analyst Sentiment - The average price target from 15 analysts for UNM is $93.93 per share, suggesting a potential upside of 22.7% from the last closing price [10] - However, three of the seven analysts have lowered their estimates for 2025, and the Zacks Consensus Estimate for 2025 earnings has decreased by 0.7% over the past 30 days [12] Operational Strength - Unum Group is expected to benefit from strong sales trends, particularly in its Unum U.S. and Colonial Life segments, with a healthy pipeline for group sales and expectations of 5-10% growth for 2025 [14] - The Colonial Life segment has seen rising operating income due to improving premium income and favorable risk results, with management focusing on a mix of higher growth and stable margin businesses [15] Dividend and Capital Return - Unum Group has a strong history of enhancing shareholder value, with a 10% dividend increase effective in Q2 2025, marking the 17th dividend hike in the last 16 years, and a dividend yield of 2.12% [17] - The company plans to repurchase shares within a range of $500 million to $1 billion and return approximately $300 million to shareholders through dividends, aiming for a total capital return of about $1.3 billion in 2025 [18] Conclusion - Favorable sales trends, strong persistency, an improving rate environment, and effective capital deployment are expected to support Unum Group's long-term growth [19]