Unum signals $8.50 EPS outlook amid premium growth and capital deployment focus

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Jul 30 2025

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UNMA+0.26%

UNM-1.45%

Should l Buy UNMA?

Source: SeekingAlpha

Management Insights: Unum Group's Q2 2025 earnings fell short of expectations due to higher claims, but premium growth remained solid at nearly 5%. The company is focusing on strategic initiatives, including reducing exposure to Long-Term Care (LTC) and enhancing digital capabilities, while also increasing dividends and share repurchases.
Financial Outlook: Full-year EPS guidance has been revised down to approximately $8.50, reflecting challenges in disability margins and LTC volatility. Despite these pressures, management remains committed to disciplined capital deployment and sustaining premium growth, with a focus on maintaining shareholder value through ongoing strategic investments.

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Analyst Views on UNMA

Wall Street analysts forecast UNMA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNMA is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

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About UNMA

Unum Group is a provider of workplace benefits and services. The Company provides financial protection benefits in the United States and the United Kingdom (UK). Its products include disability, life, accident, critical illness, dental and vision, and other related services. The Company has three segments: Unum US, Unum International, and Colonial Life. Its Unum US segment comprises group disability, group life and accidental death and dismemberment, and supplemental and voluntary lines of business. Its Unum International segment includes its operations in the UK and Poland. Unum UK's business includes insurance for group long-term disability, group life, and supplemental lines of business which include dental, individual disability, and others. Unum Poland's business includes insurance for individual and group life with accident and health riders. Its Colonial Life segment includes accident, sickness, and disability products, life products, and cancer and critical illness products.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Unum Group Q4 2025 Earnings Call Insights

15 hours agoseekingalpha

Financial Performance Overview: Unum Group reported an adjusted EPS of $8.13 for 2025, down year-over-year primarily due to higher-than-expected benefits experience, although core operations premium grew nearly 4.5%, indicating resilience and growth potential in the market.
Shareholder Return Plans: The company announced a 10% increase in dividends and plans to repurchase $1 billion in stock, reflecting a strong capital position and management's confidence in future growth, with EPS expected to grow by 8% to 12% in 2026.
International Business Growth: The international segment achieved a premium growth of 11.5% in Q4, reaching $283.9 million, with a full-year increase of 10% to $1.1 billion, although overall earnings declined due to unfavorable claims experience, highlighting market complexities and challenges.
Future Outlook: Unum expects revenue growth in the range of 4% to 7% for 2026, with management focusing on core business and digital investments to enhance profitability, aiming to bolster investor confidence through ongoing risk management and capital return strategies.