UBS Lowers Unum Group (UNM) Forecast While Maintaining Neutral Rating

Unum Group (NYSE:UNM) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds.

On February 20, UBS lowered its price recommendation on Unum Group (NYSE:UNM) to $81 from $85. The firm reiterated a Neutral rating on the shares. The adjustment reflected a more cautious outlook following recent performance and updated expectations.

Earlier, on February 6, Evercore ISI also reduced its price goal on Unum, lowering it to $103 from $105. The firm kept an Outperform rating. The analyst described the recent period as a “rough disability quarter” and said that, on an “apples to apples” basis, the company’s 2026 guidance came in about 1% to 2% lower than expected.

During the company’s Q4 2025 earnings call, CEO Richard McKenney said Unum delivered disciplined execution across its core businesses. He also highlighted continued investment in digital capabilities, which he said helps set the company apart in the market. McKenney noted progress in the Closed Block segment, saying these improvements strengthened the company’s overall risk profile.

For the full year, adjusted EPS came in at $8.13. This result declined from the prior year and fell short of expectations. McKenney said higher-than-expected benefit costs were the main reason for the shortfall. Even so, premium growth in core operations remained steady. Total premium growth reached about 4.5%. Colonial Life posted 3.1% growth, while international operations delivered stronger growth of 10%.

Looking ahead, McKenney said he remains confident in Unum’s position. He pointed to the company’s financial strength and $2.3 billion in cash at the holding company level. He also noted that Unum returned significant capital to shareholders, including a 10% increase in its dividend and $1 billion in share repurchases.

Unum Group (NYSE:UNM) operates as an international provider of workplace benefits and services. Through its Unum and Colonial Life brands, the company offers disability, life, accident, critical illness, dental, and vision insurance. It also provides leave management and behavioral health services.

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