-0.38%
5.45%
19.99%
33.86%
59.31%
203.43%
188.54%
AI Spotlight on UNM
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.
Market Data
| Last Price | 77.01 |
| Change Percentage | -0.38% |
| Open | 77.56 |
| Previous Close | 77.3 |
| Market Cap ( Millions) | 14063 |
| Volume | 750036 |
| Year High | 77.69 |
| Year Low | 46.39 |
| M A 50 | 74.01 |
| M A 200 | 60.03 |
Financial Ratios
| FCF Yield | 8.76% |
| Dividend Yield | 2.11% |
| ROE | 17.06% |
| Debt / Equity | 31.69% |
| Net Debt / EBIDTA | 135.46% |
| Price To Book | 1.31 |
| Price Earnings Ratio | 8.15 |
| Price To FCF | 11.42 |
| Price To sales | 1.1 |
| EV / EBITDA | 7.12 |
News
- Jan -30 - Unum Group to Report Q4 Earnings: Is a Beat in the Cards?
- Jan -16 - Unum Group: Strong Market Presence, Improving Economy And Undervalued, Buy
- Jan -14 - Unum Group Stock Seems To Be Undervalued
- Jan -09 - Unum Group Declares Quarterly Dividend of $0.420 Per Share of its Common Stock
- Jan -07 - Unum Group Rallies 46% in 6 Months: Here's How to Play the Stock
- Jan -06 - Unum Group to Release Fourth Quarter 2024 Results, Provide 2025 Outlook and Host Conference Call
- Dec -29 - The Zen Ten - My Top Picks For 2025
- Dec -27 - Buy These 5 Insurance Stocks That Zoomed Past S&P 500 in 2024
- Dec -26 - 4 Accident & Health Insurance Stocks to Watch as Exposure Increases
- Dec -20 - 3 Insurers Set to Continue Their Winning Streak in 2025
- Dec -19 - 5 Dividend-Paying Insurers Worth Watching for Steady Income in 2025
- Dec -18 - 4 Insurance Stocks to Secure Your Investments in the New Year
- Dec -12 - Unum (UNM) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now
- Dec -10 - Unum (UNM) Moves to Buy: Rationale Behind the Upgrade
- Dec -03 - UNM Stock Gains 68.9% YTD: What Should Be Investors' Approach Now?
- Dec -03 - Unum Group joins The Council for Disability Income Awareness
- Nov -01 - Unum Group: Revisiting Quant's Strong-Buy Insurer
- Oct -30 - Unum Group (UNM) Q3 2024 Earnings Call Transcript
- Oct -30 - Unum Group Q3 Earnings Top Estimates, Revenues & Premium Rise Y/Y
- Oct -30 - Unum (UNM) Reports Q3 Earnings: What Key Metrics Have to Say
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Unum US
Expected Growth : 4.5 %
What the company do ?
Unum US is a leading provider of employee benefits, offering a range of insurance products and services to employers and their employees.
Why we expect these perspectives ?
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.
Segment n°2 -> Closed Block
Expected Growth : 3.5 %
What the company do ?
The Closed Block from Unum Group refers to a block of in-force business that is no longer actively marketed or sold, but still maintained and serviced by the company.
Why we expect these perspectives ?
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.
Segment n°3 -> Colonial Life
Expected Growth : 4.2 %
What the company do ?
Colonial Life from Unum Group offers voluntary benefits, including life, accident, and disability insurance, to employees at no cost to employers.
Why we expect these perspectives ?
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.
Segment n°4 -> Unum International
Expected Growth : 4.8 %
What the company do ?
Unum International is a leading provider of employee benefits, offering life, disability, and supplemental health insurance to multinational companies and their employees.
Why we expect these perspectives ?
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.
Segment n°5 -> Corporate Segment
Expected Growth : 3.8 %
What the company do ?
Unum Group's Corporate Segment provides investment and financing services, managing the company's investment portfolio and capital structure.
Why we expect these perspectives ?
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.
Segment n°6 -> Reconciling Items
Expected Growth : 4.1 %
What the company do ?
Reconciling Items from Unum Group refers to the process of identifying and resolving discrepancies between Unum's financial records and external statements, ensuring accuracy and consistency in financial reporting.
Why we expect these perspectives ?
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.
Unum Group Products
| Product Range | What is it ? |
|---|---|
| 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. |
Unum Group's Porter Forces
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.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 26.33% |
| Debt Cost | 7.25% |
| Equity Weight | 73.67% |
| Equity Cost | 8.18% |
| WACC | 7.94% |
| Leverage | 35.74% |
Unum Group : Quality Control
Unum Group passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CNO | CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. … |
| JXN | Jackson Financial Inc., through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and … |
| PRI | Primerica, Inc., together with its subsidiaries, provides financial products to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings … |
| AEL | American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States. The company issues fixed index and rate annuities, as well as single premium … |
| FG | F&G Annuities & Life, Inc. provides fixed annuities and life insurance products. It serves retail annuity and life customers, as well as institutional clients. The company was founded in 1959 … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Unum
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Jackson Financial
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CNO Financial Group
A-Score
1-Year Total Return ->
4
Primerica
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1-Year Total Return ->
5
American Equity
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1-Year Total Return ->
6
