Fundamentals snapshot
UNM · NYQ · Financial Services · Insurance - Life
Current price
$91.14
52-week range
$69.02 - $96.77
Market cap
$14.43B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $1.91B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Unum Group sells insurance policies that protect people if they get sick, injured, or pass away, mostly to employers who then offer these as benefits to their employees. Their main money comes from the premiums (the payments customers make) for these insurance plans, and this matters because it shows how many people and companies rely on Unum for financial security when the unexpected happens.
Unum Group's story began way back in 1848, long before most people even thought about things like disability insurance. It started as a small company focused on providing a safety net for people. Over many decades, it grew and evolved, eventually becoming UnumProvident Corporation. In 2007, it rebranded to Unum Group, reflecting its broader reach and services. This long history has allowed Unum to build deep expertise in the financial protection business, navigating various economic cycles and changes in the insurance landscape.
Think of Unum Group as a company that helps people and businesses prepare for the unexpected. They offer various types of insurance that provide financial support if someone can't work due to illness or injury, or if they pass away. Their main customers are employers, who then offer these benefits to their employees as part of their compensation package. It's like a financial safety net, ensuring that if something bad happens, people still have some income to cover their living expenses.
This is Unum's largest business, primarily focused on providing group insurance products to employers in the United States. They offer benefits like group long-term and short-term disability insurance, which helps replace a portion of an employee's income if they become unable to work due to a disability. They also provide group life insurance, paying a benefit to the employee's beneficiaries if they die, and accidental death and dismemberment insurance, which pays out if an accident results in death or loss of limbs or sight. This segment is the core engine of Unum's revenue, making up a significant portion of its overall business.
Colonial Life operates as a distinct brand within Unum Group, specializing in supplemental and voluntary benefits. These are insurance products that employees can choose to purchase, often with their employer's endorsement, to add extra layers of financial protection. This includes things like individual disability insurance, dental and vision coverage, and critical illness insurance, which pays a lump sum if an employee is diagnosed with a serious illness like cancer. While part of the larger Unum family, Colonial Life focuses on these more personalized, employee-elected benefit options.
This segment represents Unum's operations outside of the United States, with a significant presence in the United Kingdom and Poland. Similar to its US business, Unum International offers financial protection products, including group disability, life, and accident insurance. They tailor their offerings to meet the specific needs and regulations of the international markets they serve. This part of the business allows Unum to diversify its geographic footprint and tap into growth opportunities beyond its domestic market.
The Closed Block segment primarily deals with policies that are no longer being actively sold to new customers. This includes certain long-term care insurance policies and other older products. Unum manages these policies to ensure claims are paid and the business winds down in an orderly fashion. While not a growth engine, it's an important part of Unum's overall financial management, ensuring that all obligations to policyholders are met.
Unum's leadership is focused on growing its core insurance businesses by making it easier for employers to offer and employees to understand their benefits. They are investing in technology to streamline operations and improve the customer experience, aiming to make the process of enrolling in and using insurance benefits smoother. A key priority is also expanding their voluntary benefits offerings, as these are often popular with employees seeking personalized financial protection. Management believes that by focusing on these areas, they can continue to provide essential financial security while driving profitable growth for the company.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $1.9B. Interest coverage 5.5x.
Unum Group's profit covers its interest bill about 5.5 times over.
Total debt $3.99B Interest coverage 5.47x This is the baseline the peer rows are being compared against.
Total debt $16.18B Interest coverage 21.60x +295% vs UNM Carries about 3.9x more debt cushion than UNM.
Total debt $7.24B Interest coverage 6.89x +26% vs UNM Carries about 1.3x more debt cushion than UNM.
Total debt $4.58B Interest coverage 4.39x -20% vs UNM Carries about 1.2x less debt cushion than UNM.
Total debt $3.43B Interest coverage 11.17x +104% vs UNM Carries about 2.0x more debt cushion than UNM.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know