
Unum (UNM) Stock Forecast & Price Target
Unum (UNM) Analyst Ratings
Bulls say
Unum Group is positioned favorably due to higher interest rates enhancing the outlook for its long-term care (LTC) business and free cash flow (FCF) generation. The company has successfully executed an internal reinsurance transaction that has liberated approximately $630 million in capital, thereby improving its financial flexibility and stability, as demonstrated by its strong capitalization and diversified product offerings. Additionally, the robust employment market is expected to bolster growth and margins for Unum's group benefits operations, further solidifying its competitive position in the insurance sector.
Bears say
Unum Group faces a negative outlook primarily due to anticipated pressures on its growth and margin profiles stemming from potential economic downturns and rising unemployment, which could adversely affect demand for its insurance products. Additionally, higher mortality and morbidity rates could depress core business margins and earnings power, further challenging the company's financial standing. Moreover, the impact of ceded individual disability insurance (IDI) business is expected to result in significant earnings reductions, alongside lower long-term interest rates, which may hinder the firm's capital levels and overall earnings capacity.
This aggregate rating is based on analysts' research of Unum and is not a guaranteed prediction by Public.com or investment advice.
Unum (UNM) Analyst Forecast & Price Prediction
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