UNM

Unum Group's UNM Colonial Life could remain an important growth and earnings engine, though the pace of growth will likely depend on sustained sales momentum, persistency and favorable claims experience. In the second quarter of 2026, Colonial Life's adjusted operating income rose 11.9%, while premium income increased 3.3% to $477.4 million. Sales grew 6%, providing a healthy pipeline for future premium growth. The segment also benefited from a lower 46.7% benefit ratio, down from 48.3% a year earlier, due to favorable claims experience in life, cancer and critical illness products. Another positive is investment income. Colonial Life's net investment income jumped 17.6% to $50.1 million, helped by higher yields and increased allocation of investment income. Adjusted operating ROE reached 19.4%, highlighting the segment's strong profitability. Technology and distribution could provide additional support. Management said more than 70% of Colonial Life's 12,000-plus agents use Agent Assist, its proprietary agent productivity platform. Greater adoption could improve agent productivity and help support sales growth. However, investors should watch persistency, which was 78.2% in the first half of 2026 versus 78.5% a year earlier. The relatively modest premium growth also suggests that stronger sales will need to translate into sustained in-force growth to keep Colonial Life's earnings trajectory intact. Colonial Life currently has several favorable ingredients—solid sales growth, strong claims experience, higher investment income, stable persistency and high ROE. If UNM can maintain these trends, Colonial Life can remain a key contributor to earnings growth and help offset pressure from weaker International results and the Closed Block. Aflac Incorporated's AFL U.S. benefits business has the potential to become a more important growth contributor, supported by expanding demand for group voluntary benefits, dental and vision products. In the second quarter of 2026, earned premiums from group products, including group life, absence and disability, dental and vision, and group voluntary benefits, increased 13%, highlighting solid demand. Management expects U.S. net earned premiums to witness a 3-6% CAGR from 2025 to 2027, although 2026 growth is expected to come in slightly below that range. With employers increasingly using voluntary benefits to enhance employee offerings while controlling benefit costs, Aflac's broad distribution network and supplemental products could support steady organic growth. MetLife, Inc.'s MET Group Benefits business is emerging as a key growth and earnings contributor, supported by solid premium growth, favorable underwriting trends and improving business volumes. In the second quarter of 2026, Group Benefits adjusted earnings increased strongly, aided by higher premiums and improved underwriting performance. Continued demand for employer-sponsored life, disability and dental benefits, along with higher enrollment and strong customer retention, could support further growth. Investors, however, will want to assess whether favorable claims experience can be sustained as pricing conditions evolve and whether premium growth can translate into durable earnings expansion. Shares of UNM have gained 18.6% in the year-to-date period, outperforming the industry. Image Source: Zacks Investment Research The stock is undervalued compared with its industry. Its forward price-to-book value of 1.37X is lower than the industry average of 1.66X. It carries a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for UNM's third-quarter and fourth-quarter 2026 EPS has both moved down 0.9% in the past 60 days. The same for the full-year 2026 and 2027 EPS has moved up 0.2% and down 0.9%, respectively, in the past 60 days. Image Source: Zacks Investment Research The consensus estimate for UNM's 2026 and 2027 EPS and revenues indicates year-over-year increases. UNM stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Unum Group currently trades at $96.56 and has been a dream stock for shareholders. It’s returned 268% since September 2021, blowing past the S&P 500’s 69.5% gain. The company has also beaten the index over the past six months as its stock price is up 31.6%. Is there a buying opportunity in Unum Group, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free. We’re happy investors have made money, but we’re sitting this one out for now. Here are two reasons why UNM doesn’t excite us, plus one stock we’d rather own. Insurers sell policies then use reinsurance (insurance for insurance companies) to protect themselves from large losses. Net premiums earned are therefore what's collected from selling policies less what’s paid to reinsurers as a risk mitigation tool. Unum Group’s net premiums earned has grown at a 3.2% annualized rate over the last five years, worse than the broader insurance industry. While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business. Unum Group’s EPS grew at a weak 1.9% compounded annual growth rate over the last two years. On the bright side, this performance was higher than its 1.3% annualized revenue declines and tells us management adapted its cost structure in response to a challenging demand environment. We see the value of companies helping consumers, but in the case of Unum Group, we’re out. With its shares outperforming the market lately, the stock trades at 1.3× forward P/B (or $96.56 per share). This multiple tells us a lot of good news is priced in - we think other companies feature superior fundamentals at the moment. We’d suggest looking at the most entrenched endpoint security platform on the market. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

A month has gone by since the last earnings report for Unum (UNM). Shares have added about 9.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Unum due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. UNM Q2 Earnings and Revenues Beat Estimates on Solid Premium GrowthUnum Group’s second-quarter 2026 operating net income of $2.16 per share surpassed the Zacks Consensus Estimate by 1%. The bottom line increased 4.4% year over year. The quarterly results benefited from premium growth across core businesses, improved performance in Unum U.S. and Colonial Life, and strong sales momentum. However, lower net investment income, higher total costs and weaker Closed Block results partly offset these gains. Total operating revenues of Unum Group were $3.4 billion, down 0.1% year over year. The top line surpassed the Zacks Consensus Estimate by 14.3%.Premium increased 2.5% from the prior-year quarter to $2.8 billion, which was higher than our estimate of $2.5 billion. The Zacks Consensus Estimate was pegged at $2.6 billion. Net investment income declined 14.7% year over year to $478.4 million, primarily due to lower returns from alternative investments. Total benefits and expenses increased 3.3% year over year to $3 billion, largely attributable to higher policy benefits, commissions and other expenses. The figurewas higher than our estimate of $2.5 billion. Unum U.S.: Premium income was $1.86 billion, up 3.3% year over year.Adjusted operating income decreased 22.8% year over year to $261 million, primarily due to less favorable disability experience and higher benefit costs. It excluded the amortization of the deferred gain on reinsurance of $4.4 million and the impact of non-contemporaneous reinsurance of $0.7 million. Our estimate was $314 million. The group disability line of business reported a 17.4% decrease in adjusted operating income while the group life and accidental death and dismemberment line of business reported a 32.8% increase. The supplemental and voluntary line of business reported an increase of 8.2%.Unum International: Premium income of $289.3 million increased 6.7% year over year.  Adjusted operating income was $24.3 million, down 41.6% year over year. Our estimate was $51.7 million.The Unum U.K. line of business premium income totaled £175.5 million, up 5.2% from the year-ago quarter, primarily due to in-force block growth, sales and favorable persistency. Adjusted operating income, in local currency, was £15.3 million, down 48% year over year. The benefit ratio, excluding the reserve assumption updates, was 82.2%, which deteriorated 720 basis points (bps), primarily due to higher average claim size and increased claim incidence in the group long-term disability business. Sales decreased 14.9% to £32.6 million. Persistency decreased in the supplemental product line, the group long-term disability and the group life product line.Colonial Life: Premium income increased 3.3% from the prior-year figure to $477.4 million, driven by stable overall persistency and prior period sales. Sales increased 0.9% from the year-ago figure to $106.3 million. Adjusted operating income increased 11.9% from the prior-year period to $131.4 million. Our estimate was $113.4 million. Persistency was 78.2% for the first half of 2026, improved 30 bps year over year. The benefit ratio, excluding the reserve assumption updates, improved 300 bps year over year to 46.7%.Closed Block: Premium income decreased 10.8% to $192.9 million. The segment reported an adjusted operating loss of $61.2 million, compared with a loss of $10.8 million in the year-ago quarter. The decrease was primarily due to lower net investment income and the amortization of the cost of reinsurance. Our estimate for loss was $55 million.Corporate: The segment incurred an adjusted operating loss of $44.5 million, wider than the year-ago quarter’s loss of $31.7 million, primarily due to decreased net investment income. Our estimate for loss was $45.1 million. As of June 30, 2026, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 480%.Unum Group exited the second quarter with holding company liquidity worth $1.5 billion. Book value per share grew 3.8% year over year to $68.28 as of June 30, 2026. UNM repurchased approximately $200 million of common shares and paid $73.5 million in common stock dividends during the second quarter. UNM expects that after-tax adjusted operating income per share will increase to 22.2% from 21.2% in the year-ago period. Management expects 2026 EPS of $8.60-$8.90, implying 8-12% growth. Since the earnings release, investors have witnessed a downward trend in estimates revision. At this time, Unum has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Unum has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the life insurance industry, including Unum Group (NYSE:UNM) and its peers. Life insurance companies collect premiums from policyholders in exchange for providing a future death benefit or retirement income stream. Interest rates matter for the sector (and make it cyclical), with higher rates allowing insurers to reinvest their fixed-income portfolios at more attractive yields and vice versa. Additionally, favorable demographic shifts, such as an aging population, are driving strong demand for retirement products while AI and data analytics offer significant opportunities to improve underwriting accuracy and operational efficiency. Conversely, the industry faces headwinds from persistent competition from agile insurtechs that threaten traditional distribution models. The 12 life insurance stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 8.2%. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Tracing its roots back to 1848 when financial security for workers was virtually non-existent, Unum Group (NYSE:UNM) provides workplace financial protection benefits including disability, life, accident, critical illness, dental and vision insurance primarily through employers. Unum Group reported revenues of $2.96 billion, down 12.3% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a slower quarter for the company with a significant miss of analysts’ book value per share estimates and EPS in line with analysts’ estimates. “We delivered another solid performance in the second quarter across multiple dimensions,” said Richard P. McKenney, president and chief executive officer. Unum Group delivered the slowest revenue growth among its peers. Interestingly, the stock is up 4.1% since reporting and currently trades at $91.51. Read our full report on Unum Group here, it’s free. Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees. Horace Mann Educators reported revenues of $443.5 million, up 7.7% year on year, in line with analysts’ expectations. The business had a very strong quarter with a beat of analysts’ EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.7% since reporting. It currently trades at $51.21. Is now the time to buy Horace Mann Educators? Access our full analysis of the earnings results here, it’s free. Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ:BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets. Brighthouse Financial reported revenues of $2.10 billion, down 2.4% year on year, falling short of analysts’ expectations by 2%. It was a softer quarter as it posted a significant miss of analysts’ book value per share estimates and a significant miss of analysts’ EPS estimates. As expected, the stock is down 9.7% since the results and currently trades at $55.88. Read our full analysis of Brighthouse Financial’s results here. Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE:MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide. MetLife reported revenues of $19.08 billion, up 6.4% year on year. This print lagged analysts’ expectations by 2.2%. It was a slower quarter as it also logged a significant miss of analysts’ book value per share estimates. The stock is flat since reporting and currently trades at $96.21. Read our full, actionable report on MetLife here, it’s free. With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE:PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada. Primerica reported revenues of $863.4 million, up 8.5% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ book value per share estimates but a significant miss of analysts’ net premiums earned estimates. The stock is down 3.3% since reporting and currently trades at $309.93. Read our full, actionable report on Primerica here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Interested in Unum Group? Here are five stocks we like better. Unum reaffirmed its full-year outlook for adjusted operating EPS of $8.60–$8.90 after second-quarter adjusted operating EPS rose 4.9% to $2.16. Core premium growth remained on track for the company’s 4%–7% target, while return on equity reached 15.9%. Strong results from Colonial Life, group life and AD&D offset pressure in disability operations. U.S. group disability benefit ratios rose to 65.8% because of elevated short-term disability and PFML claims, prompting double-digit pricing increases; U.K. income-protection results also weakened. Unum plans to close a fourth-quarter reinsurance transaction covering $3.8 billion of long-term-care reserves and remains on track to return about $1.3 billion to shareholders in 2026. The company repurchased $200 million of stock and paid $275 million to shareholders during the quarter. The “Duck Stock” Keeps Quietly Making Money for Shareholders Unum Group (NYSE:UNM) reported second-quarter after-tax adjusted operating earnings per share of $2.16, up 4.9% from a year earlier, while year-to-date adjusted operating EPS rose 7.5%. The insurer reaffirmed its full-year adjusted operating EPS outlook of $8.60 to $8.90 despite pressure in paid family and medical leave business in the United States and group income protection in the United Kingdom. President and CEO Rick McKenney said the quarter reflected “continued attractive returns, generally stable persistency, and favorable performance across several of our core businesses.” He said underlying premium growth was roughly 5% after adjusting for the runoff of the stop-loss business and prior transactions, while U.S. sales under the Unum brand increased 7.4% in the quarter and 14% year to date. → Microsoft Just Flipped the AI Spending Narrative Overnight These 3 Insurance Stocks Made New 52-Week Highs: Still Time to Buy? Chief Financial Officer Steven Zabel said consolidated adjusted operating return on equity was 15.9% for the quarter and 16% year to date, within the company’s outlook range. Core earned premium grew 3.6% in the second quarter, or just over 5% after the specified adjustments. Unum said it expects to achieve its full-year core premium growth target of 4% to 7%. Unum U.S. produced adjusted operating income of $329.6 million, compared with $318.2 million a year earlier. Earnings were helped by group life and accidental death and dismemberment, as well as supplemental and voluntary products, but were partially offset by higher benefit costs in group disability. → 2 Unique Space ETFs That Could Upend the Industry 3 Dividend Stocks Defying the Market Downturn Amid the Iran Conflict The group disability benefit ratio was 65.8%, above Unum’s 62% to 64% expectation. Zabel said elevated short-term disability claims represented about two percentage points of the benefit-ratio pressure, with paid family and medical leave, or PFML, accounting for an estimated 60% to 70% of that impact. The company said newer PFML states have experienced higher claims activity. Management said it has started implementing double-digit pricing increases for new business and renewals, noting that its initial PFML pricing generally does not include multiyear rate guarantees. → MarketBeat Week in Review – 07/27- 07/31 McKenney said PFML remains strategically important because it is connected to Unum’s leave-management offering. About half of the Unum U.S. in-force block, excluding individual disability insurance, is tied to HR Connect, Total Leave or Broker Connect. Premium and fees associated with those capabilities have increased nearly 70% since the end of 2023, according to McKenney. Management expects group disability benefit ratios to remain elevated near recent-quarter levels until revised PFML rates are fully incorporated into the block. Still, Zabel said the company continues to view a 65% group disability benefit ratio as sustainable over the longer term, as higher PFML pricing takes effect and other pricing adjustments are made. Group life and AD&D results were favorable, with adjusted operating income of $93.2 million, up from $70.2 million in the prior-year quarter. The benefit ratio improved to 66% from 69.7%, driven by lower claim incidence. Zabel said the company expects the favorable mortality pattern to continue through the second half. Colonial Life reported record quarterly adjusted operating income of $131.4 million, up from $117.4 million a year earlier. Its benefit ratio was 46.7%, better than both the prior-year result of 48.3% and the company’s expected 48% to 50% range. Premium income increased to $477.4 million, and sales rose 6% to $134.1 million. Steve Jones, president of Colonial Life, said the business saw growth from both new and existing clients. Sales from new clients increased 10%, while sales to clients with more than 500 employees grew 15%. He also said the company was recruiting agents at a pace 6% ahead of last year’s level. Unum International adjusted operating income declined to $24.3 million from $41.6 million a year earlier. The segment benefit ratio rose to 78.4% from 72.4%, largely due to unfavorable experience in the U.K. group income protection business. U.K. adjusted operating income was £15.3 million, down from £29.4 million a year earlier, as elevated average claim values continued. Zabel said the higher costs were associated with a greater proportion of claims from higher-income employees. The company expects U.K. pressure to moderate in the second half from current elevated levels, though broader pricing actions will take time to affect results because two- to three-year rate guarantees are common in that market. U.K. premium grew 5.2%, while Poland premium increased 8.8%. Mark Till, who leads Unum International, said U.K. sales were down about 14% in the second quarter as the company made pricing decisions that made it more selective on new business. Unum also discussed its planned reinsurance of $3.8 billion in long-term care statutory reserves from its Fairwind closed-block business. The transaction, expected to close in the fourth quarter, represents about 26% of the company’s total long-term care block and 52% of its individual long-term care business. Following the transaction, Fairwind is expected to retain about $7.1 billion of group long-term care statutory reserves, supported by approximately $1.9 billion of protections. Zabel said sensitivities across key Fairwind assumptions would decline by 28% to 42% after the deal closes. The company expects the amortization of upfront transaction costs and non-contemporaneous reinsurance impacts from the deal to total approximately $30 million to $40 million per quarter. Including prior closed-block reinsurance transactions, those items are expected to initially total about $90 million to $100 million per quarter and decline over time. Unum said group long-term care case terminations continued to reduce exposure. About 3% of cases closed during the second quarter, reducing long-term exposure by more than 20,000 lives. Since the end of 2025, about 10% of group long-term care cases have closed, representing more than 50,000 lives. Holding-company liquidity stood at $1.5 billion and traditional risk-based capital was 480% at quarter-end. Unum expects to finish the year within its targets of 400% to 425% RBC and $1.5 billion to $2 billion in holding-company liquidity. The company repurchased approximately $200 million of stock during the quarter. Including dividends, Unum returned about $275 million to shareholders in the quarter and approximately $750 million year to date. Management said it remains on track to deploy about $1.3 billion to shareholders during 2026. 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. 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]. The article "Unum Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

In the past quarter, Unum Group reported Q2 2026 revenue of US$3,370.0 million versus US$3,361.4 million a year earlier, while net income declined to US$256.9 million from US$335.6 million, and the company continued returning capital through buybacks and dividends. Unum also completed a US$600.68 million repurchase of 7,885,258 shares and highlighted a pending long-term care reinsurance deal aimed at improving the risk profile of its Closed Block segment, giving investors a clearer view of how management is balancing earnings pressure with balance sheet and capital management actions. Next, we’ll examine how Unum’s earnings softness alongside substantial share repurchases and planned long-term care reinsurance affect its investment narrative. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own Unum Group, you need to be comfortable with a story centered on steady employee benefits demand, disciplined underwriting, and careful balance sheet management. The latest quarter showed modest revenue growth but weaker net income, while capital returns through buybacks and dividends continued, so the near term earnings softness does not appear to materially change the key catalyst around de-risking the long-term care block or the main risk of elevated benefit ratios and long-term care volatility. The most relevant development here is Unum’s agreement to reinsure a large long-term care block to Fortitude Re, which management expects to close later in 2026. Together with ongoing buybacks and higher dividends, this helps frame how Unum is reshaping its risk profile while still returning cash, even as investors weigh the trade off between lower long-term care exposure and potential earnings volatility from claims trends in the core businesses. Yet investors should still pay attention to how any renewed pressure on benefit ratios could... Read the full narrative on Unum Group (it's free!) Unum Group's narrative projects $13.3 billion revenue and $1.5 billion earnings by 2029. This implies fairly flat yearly revenue growth and roughly a $700 million earnings increase from $781.4 million today. Uncover how Unum Group's forecasts yield a $102.23 fair value, a 22% upside to its current price. Three Simply Wall St Community fair value estimates for Unum range from US$102.15 to US$177.66 per share, underscoring how far apart individual views can be. You can weigh these against the recent earnings softness and long term care reinsurance plans, which together may influence how you think about Unum’s future resilience and return potential. Explore 3 other fair value estimates on Unum Group - why the stock might be worth just $102.15! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Unum Group research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Unum Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Unum Group's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Uncover the next big thing with 20 elite penny stocks that balance risk and reward. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UNM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed solid second quarter performance to the breadth of the diversified employee benefits franchise, where strong results in Group Life and Colonial Life balanced elevated claims in specific disability segments. The company reported underlying premium growth of approximately 5%, supported by stable persistency and successful digital connectivity investments like HR Connect and Total Leave. U.S. Group Disability results were pressured by elevated short-term disability experience, primarily driven by higher claims activity in newer Paid Family and Medical Leave (PFML) markets. Management characterized PFML as a developing market where they chose to participate early to support broader leave management capabilities, despite maturing claim data. International performance was impacted by elevated average claim values in the U.K. Group Income Protection business, specifically among high-income employees. The recently announced reinsurance transaction for $3.8 billion of long-term care (LTC) reserves was framed as a critical step in simplifying the Closed Block and reducing overall corporate risk volatility. Operational efficiency improved through technology investments, with over 70% of Colonial Life agents now utilizing the Agent Assist productivity platform. Full-year after-tax adjusted operating EPS guidance was reaffirmed at $8.60 to $8.90, assuming continued strength in Group Life and Colonial Life to offset disability headwinds. Management is implementing double-digit rate adjustments for PFML new business and renewals, expecting these actions to gradually improve the benefit ratio over time. The U.K. segment is expected to see continued pressure in the second half of 2026, though at a lower level as pricing and underwriting actions begin to take effect. The LTC reinsurance transaction is expected to close in the fourth quarter, resulting in ongoing GAAP earnings impacts of approximately $90 million to $100 million per quarter from amortization and reinsurance accounting. Capital deployment plans remain on track to return approximately $1.3 billion to shareholders in 2026 through dividends and share repurchases, funded by robust free cash flow. The Closed Block experienced approximately 3% of group LTC case terminations in the quarter, reducing long-term exposure by more than 20,000 lives as employers reassess benefit programs. A $31 million charge for strategic actions was recorded, reflecting real estate valuation adjustments and employee-related costs from operating model changes. The effective tax rate is expected to be approximately 22% for the remainder of 2026, influenced by the impact of U.K. results on the international tax profile. Alternative investment yields for the LTC portfolio were 6.1% in the quarter, falling below the long-term expectation of 8% to 10%. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that PFML pricing generally lacks multiyear rate guarantees, allowing for faster adjustments as experience emerges. Significant pricing actions are targeted for the January 1, 2027, renewal cycle, which is a major volume period for the block. The 66% benefit ratio in Group Life is considered sustainable for the back half of the year due to consistently lower incidence rates. Management does not intend to aggressively lower prices in this segment, preferring to maintain margins within the bundled product strategy. Terminations are driven by management's decision to stop allowing new entrants into certain group plans and implementing rate increases. These actions force employers to evaluate the role of LTC in their benefit packages, effectively reducing Unum's long-term risk through natural runoff. Management remains open to further risk transfer but noted that the Group LTC block has different dynamics than individual LTC, including younger ages and longer durations. The recent 10% lapse in the group block changes the valuation and must be factored into any future discussions with reinsurers.

For the quarter ended June 2026, Unum (UNM) reported revenue of $3.38 billion, down 0.1% over the same period last year. EPS came in at $2.16, compared to $2.07 in the year-ago quarter. The reported revenue represents a surprise of +14.26% over the Zacks Consensus Estimate of $2.95 billion. With the consensus EPS estimate being $2.14, the EPS surprise was +0.94%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Unum performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Other Expense Ratio - Unum US Group Life and Accidental Death & Dismemberment: 12.6% compared to the 12.4% average estimate based on three analysts. Other Expense Ratio - Colonial Life Segment: 20% versus 20.1% estimated by three analysts on average. Benefit Ratio - Colonial Life Segment: 46.7% versus the three-analyst average estimate of 49%. Other Expense Ratio - Unum US Supplemental and Voluntary: 21.1% versus the three-analyst average estimate of 22.4%. Revenue- Premium Income: $2.82 billion versus the four-analyst average estimate of $2.62 billion. The reported number represents a year-over-year change of +2.5%. Revenue- Net investment income: $478.4 million compared to the $268.51 million average estimate based on four analysts. The reported number represents a change of -14.7% year over year. Revenue- Other income: $79 million versus $66.4 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change. Adjusted Operating Revenue- Unum US Group Disability- Total: $962.1 million versus the three-analyst average estimate of $951.59 million. The reported number represents a year-over-year change of +3.7%. Adjusted Operating Revenue- Unum US Group Life and Accidental Death & Dismemberment- Total Premium Income: $553.5 million versus the three-analyst average estimate of $543.77 million. The reported number represents a year-over-year change of +6.6%. Adjusted Operating Revenue- Unum US Group Life and Accidental Death & Dismemberment- Net Investment Income: $23.3 million compared to the $23.36 million average estimate based on three analysts. The reported number represents a change of +10.4% year over year. Adjusted Operating Revenue- Unum US Group Life and Accidental Death & Dismemberment- Other Income: $0.3 million versus $0.57 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -25% change. Adjusted Operating Revenue- Unum US Group Life and Accidental Death & Dismemberment- Total: $577.1 million compared to the $567.69 million average estimate based on three analysts. The reported number represents a change of +6.7% year over year. View all Key Company Metrics for Unum here>>> Shares of Unum have returned -3.6% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Unum Group (UNM) is back in focus after its latest quarterly report and buyback update. The company posted second quarter 2026 earnings and also completed a sizeable share repurchase program. See our latest analysis for Unum Group. Unum Group’s latest earnings and buyback activity come after a steady run for the stock, with the share price up 13.85% year to date and a 5 year total shareholder return of 275.26%. The recent 8.17% 3 month share price return suggests momentum has been building again around the US$87.93 level as investors react to ongoing capital returns and updates on its long term care risk profile. If Unum Group’s recent move has you thinking about where else capital might work hard, it could be worth scanning 18 top founder-led companies After a strong multi year run and a recent bump around US$87.93, Unum Group now prompts a simple question: Do the current earnings profile and buybacks still leave enough upside for buyers once the risks are priced in? At a last close of $87.93 against a narrative fair value of $102.23, Unum Group is framed as undervalued, with that gap resting heavily on a few key long term assumptions. Read the complete narrative. Want to see what sits underneath that LTC derisking story? The narrative refers to stable revenue growth, improved margins, rising earnings and ongoing share repurchases to describe its fair value path. Result: Fair Value of $102.23 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Unum Group’s story can quickly change if long term care reserves behave worse than expected or if benefit ratios remain elevated and begin to pressure capital. Find out about the key risks to this Unum Group narrative. The analyst narrative frames Unum Group as undervalued relative to a fair value of $102.23, yet the current P/E of 18x tells a different story. That multiple sits above both peers at 17.5x and the US insurance industry at 12.4x, and also above a fair ratio of 14.4x. Put simply, the share price already bakes in richer earnings expectations than both sector averages and the modelled fair ratio. For investors, that raises a practical question: Is the extra price tag a reasonable trade off for Unum Group’s current earnings and buyback profile, or is it time to demand a wider margin of safety? See what the numbers say about this price — find out in our valuation breakdown. Does the mixed tone on Unum Group’s valuation and LTC risk leave you on the fence? Take a closer look at the balance of concerns and potential upsides by reviewing the 3 key rewards and 2 important warning signs. If Unum Group has sharpened your focus on quality opportunities, do not stop here. Put your watchlist to work by testing fresh ideas with targeted stock lists. Target dependable income by reviewing high yielding companies in the 8 dividend fortresses that prioritise regular cash returns to shareholders. Spot potential value opportunities by scanning the screener containing 20 high quality undiscovered gems that many investors may not be watching yet. Reduce portfolio stress by assessing companies in the 83 resilient stocks with low risk scores that score well on resilience and financial strength. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UNM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Unum Group’s UNM second-quarter 2026 operating net income of $2.16 per share surpassed the Zacks Consensus Estimate by 1%. The bottom line increased 4.4% year over year. The quarterly results benefited from premium growth across core businesses, improved performance in Unum U.S. and Colonial Life, and strong sales momentum. However, lower net investment income, higher total costs and weaker Closed Block results partly offset these gains. Unum Group price-consensus-eps-surprise-chart | Unum Group Quote Total operating revenues of Unum Group were $3.4 billion, down 0.1% year over year. The top line surpassed the Zacks Consensus Estimate by 14.3%. Premium increased 2.5% from the prior-year quarter to $2.8 billion, which was higher than our estimate of $2.5 billion. The Zacks Consensus Estimate was pegged at $2.6 billion. Net investment income declined 14.7% year over year to $478.4 million, primarily due to lower returns from alternative investments. Total benefits and expenses increased 3.3% year over year to $3 billion, largely attributable to higher policy benefits, commissions and other expenses. The figurewas higher than our estimate of $2.5 billion. Unum U.S.: Premium income was $1.86 billion, up 3.3% year over year. Adjusted operating income decreased 22.8% year over year to $261 million, primarily due to less favorable disability experience and higher benefit costs. It excluded the amortization of the deferred gain on reinsurance of $4.4 million and the impact of non-contemporaneous reinsurance of $0.7 million. Our estimate was $314 million. The group disability line of business reported a 17.4% decrease in adjusted operating income while the group life and accidental death and dismemberment line of business reported a 32.8% increase. The supplemental and voluntary line of business reported an increase of 8.2%. Unum International: Premium income of $289.3 million increased 6.7% year over year. Adjusted operating income was $24.3 million, down 41.6% year over year. Our estimate was $51.7 million. The Unum U.K. line of business premium income totaled £175.5 million, up 5.2% from the year-ago quarter, primarily due to in-force block growth, sales and favorable persistency. Adjusted operating income, in local currency, was £15.3 million, down 48% year over year. The benefit ratio, excluding the reserve assumption updates, was 82.2%, which deteriorated 720 basis points (bps), primarily due to higher average claim size and increased claim incidence in the group long-term disability business. Sales decreased 14.9% to £32.6 million. Persistency decreased in the supplemental product line, the group long-term disability and the group life product line. Colonial Life: Premium income increased 3.3% from the prior-year figure to $477.4 million, driven by stable overall persistency and prior period sales. Sales increased 0.9% from the year-ago figure to $106.3 million. Adjusted operating income increased 11.9% from the prior-year period to $131.4 million. Our estimate was $113.4 million. Persistency was 78.2% for the first half of 2026, improved 30 bps year over year. The benefit ratio, excluding the reserve assumption updates, improved 300 bps year over year to 46.7%. Closed Block: Premium income decreased 10.8% to $192.9 million. The segment reported an adjusted operating loss of $61.2 million, compared with a loss of $10.8 million in the year-ago quarter. The decrease was primarily due to lower net investment income and the amortization of the cost of reinsurance. Our estimate for loss was $55 million. Corporate: The segment incurred an adjusted operating loss of $44.5 million, wider than the year-ago quarter’s loss of $31.7 million, primarily due to decreased net investment income. Our estimate for loss was $45.1 million. As of June 30, 2026, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 480%. Unum Group exited the second quarter with holding company liquidity worth $1.5 billion. Book value per share grew 3.8% year over year to $68.28 as of June 30, 2026. UNM repurchased approximately $200 million of common shares and paid $73.5 million in common stock dividends during the second quarter. UNM expects that after-tax adjusted operating income per share will increase to 22.2% from 21.2% in the year-ago period. Management expects 2026 EPS of $8.60-$8.90, implying 8-12% growth. UNM currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter. Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results. Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion. Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research