Unum Group (UNM – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Suneet Kamath from Jefferies maintained a Buy rating on the stock and has a $100.00 price target.
Suneet Kamath has given his Buy rating due to a combination of factors that highlight Unum Group’s strategic and financial positioning. The company recently announced a significant reinsurance transaction with Fortitude Re, which involves $3.4 billion of long-term care (LTC) reserves and 20% of its individual disability insurance (IDI) in-force. This deal is expected to provide a net capital benefit of $100 million and demonstrates Unum’s ability to effectively manage and reduce LTC risk, which has been a drag on its valuation.
Additionally, the internal transfer of its remaining LTC block to Provident Life and Accident resulted in a $630 million increase in holding company cash, further strengthening its financial position. Despite a slight reduction in its 2025 earnings per share growth outlook due to the IDI reinsurance deal, Unum maintains a strong core business with potential for future buybacks and growth. The company’s strategic moves to reduce LTC exposure and enhance capital flexibility are seen as positive steps that could lead to a more favorable market valuation.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $97.00 price target.
UNM’s price has also changed dramatically for the past six months – from $54.790 to $81.720, which is a 49.15% increase.
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