Unum(UNM) ZACKS·2025-03-07 14:45Core Viewpoint - Unum Group (UNM) is trading at a discount compared to its industry peers, with a forward price-to-book value of 1.32X, lower than the industry average of 1.89X, indicating potential investment opportunity [1] Financial Performance - Unum Group has a market capitalization of 79.46, near its 52-week high of 75.22 and 13.44 billion, reflecting a year-over-year improvement of 4.3% [10] - For 2026, the consensus estimates indicate an increase of 8.7% in earnings per share and 4.2% in revenues compared to 2024 estimates [10] - Earnings have grown by 12.9% over the past five years, outperforming the industry average of 3.6% [10] Business Drivers - 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 [11] - Unum Group anticipates adjusted operating return on equity (ROE) between 21% and 23% from core business in 2025, with long-term sales growth expected in the range of 8-12% [11] Operational Strength - Unum Group is positioned for growth through operational excellence in its largest segments, Unum U.S. and Colonial Life, supported by strong sales trends and new product line growth [12] - Management estimates sales growth of 5-10% and premium growth of 3.6% for Unum U.S. in 2025, and similar growth expectations for Colonial Life [13] Dividend Policy - Unum Group has a strong history of enhancing shareholder value through consistent dividend increases, with a 15% hike effective in Q3 2024, marking the 15th increase in the last 14 years [14] - The current dividend yield stands at 2.1%, making it attractive for yield-seeking investors [14] 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 hold for investors [15]