Stock of the Day

October 23, 2019

Unum Group (UNM)

$89.03
-$0.54 (-0.6%)
Market Cap: $14.31B

About Unum Group

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. 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 miscellaneous products. The company sells its products primarily to employers for the benefit of employees. It sells its products through field sales personnel, independent brokers, consultants, and independent contractor agent sales force and brokers. Unum Group was founded in 1848 and is based in Chattanooga, Tennessee.

Today's Trend

Unum Group (NYSE: UNM) moved lower as investors weighed a mixed set of headlines, with the biggest focus on a large long-term care reinsurance transaction and fresh analyst commentary.

  • Barclays raised its price target on Unum Group to $110 from $105 and kept an overweight rating, signaling continued confidence in upside potential. Article Link
  • Wolfe Research reiterated an outperform rating and only trimmed its target to $100 from $102, implying the stock still has room to run. Article Link
  • Unum announced a $3.8 billion long-term care reinsurance deal with Fortitude Re, a move that cuts its LTC statutory reserve exposure and could reduce balance-sheet risk over time. Article Link
  • Several market recaps and transcript posts covered the Fortitude Re transaction, but they did not add materially new information beyond the deal announcement. Article Link
  • A Zacks piece highlighted Unum as a possible high-growth dividend stock, which is supportive for sentiment but unlikely to be a major near-term catalyst. Article Link

Overall, UNM appears to be drifting lower despite generally favorable news because the stock is digesting the reinsurance transaction, while analyst target changes and dividend coverage commentary remain supportive of the longer-term outlook.

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