UNM NYSE Russell 1000 Earnings call
Unum (UNM) · Q2 2026 results and valuation
Share price: $81.37 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026
Net income up 10.7% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+10.7%
Net income vs Q1 2026
Outlook given
Net income 256.9M vs 232.0M
Revenue +0.4%
Against the same quarter last year (Q2 2025) it is −23.5%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Restrained
Less upbeat than 70% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Figure
The company agreed to reinsure an additional $3.8 billion of long-term care reserves, representing a meaningful step in its credit and capital…
Valuation
Is Unum undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.9% growth a year (3-year revenue growth), the model's fair value is $65.86 a share — the stock trades 24% above it. Today's price assumes 5.8% growth a year.
Current price
$81.37
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+5.8% for 10 yrs
Fair value / share
$65.86
Buy below
$49.40
Price vs fair value
Overvalued 24%
Price vs buy-below price
Overvalued 65%
Read between the lines
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Key theme
Well reserved for group long-term care business, but those reserves cannot be easily used elsewhere.
Source quote
“So that makes you feel really good that we're well reserved for that group LTC business. If you go to post transaction, pretty much all those protections are in the margin of the reserves. But it does make it less fungible.”
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Guidance
Excluding these items, Unum expects Closed Block GAAP earnings to continue tracking to its expectations with some quarter-to-quarter volatility as it executes actions within the block.
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Guidance
Fairwind protection is expected to reach approximately $1.9 billion after the Fortitude Re deal closes.
Source quote
“Following the close of the Fortitude Re transaction, we expect Fairwind protection to be approximately $1.9 billion.”
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Fading
New growth in the mid customer segment provided a tailwind for PFML, though the impact of this growth is less pronounced compared to the previous quarter.
Source quote
“That there's a little bit of tailwind in PFML in that space, but even when you strip that out, new...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Colonial Life had another very strong quarter with 6% sales growth leading to solid premium growth and attractive returns of nearly 20%.”
“Getting to new customers has also been successful Sales growth has been solid, which was highlighted by U.S.”
“As a result, in addition to sales growth, we have seen solid persistency and favorable benefits experience maintaining its important position in the worksite market.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.37B | 3.36B | +0.4% | 3.36B | +0.3% |
| Operating income | 329.5M | 302.7M | +8.9% | 417.0M | −21.0% |
| Net income | 256.9M | 232.0M | +10.7% | 335.6M | −23.5% |
| EPS | 1.61 | 1.41 | +14.2% | 1.92 | −16.1% |
| P/E today 20.9 | 20.7 | 15.8 | +4.9 | 9.7 | +11.0 |
Topics
Most discussed now
- This brings its year-to-date deployment to approximately $750 million, and Unum remains committed to its plans deploying approximately $1.3…
- Group persistency remained strong at 91.5%, up nearly 2 percentage points from the prior year.
- Results reflected favorable earnings in Group Life and AD&D and supplemental and voluntary, partially offset by pressure in group…
- Turning to Unum's quarterly operating results, the Unum US segment produced adjusted operating income of $329.6 million in the second...
- Core earned premium grew 3.6%, with a 3.7% increase year-to-date.
Faded since Q1 2026
- Fading One I had is on the paid family medical leave.
- Fading It's just a point in time where they evaluate their entire employee benefits package and how the LTC plans might...
- Dropped There is a lot of demographic information about the split between individual and group in Unum's annual investor packet that...
- Fading The good thing about PFML is, it is high-frequency type coverage like short-term disability.
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Articles or bylaws amended · SEC 8-K