UBS Cuts Unum Group Price Target to $81 from $85, Retains Neutral
UBS cut its price target on Unum Group to $81 from $85 while maintaining a Neutral rating after trimming 2026 guidance by up to 2% following a rough disability quarter. In Q4 2025, adjusted EPS fell to $8.13 due to higher benefit costs as total premium grew 4.5% and cash at holding company was $2.3 billion.
1. Analysts Reduce Price Targets
UBS lowered its price target on Unum Group to $81 from $85 and maintained a Neutral rating, reflecting cautious 2026 guidance trimmed by up to 2% after a rough disability quarter. Evercore ISI also cut its target to $103 from $105 while keeping an Outperform view.
2. Q4 2025 Results Show Cost Pressures
In Q4 2025, Unum delivered adjusted EPS of $8.13, down from the prior year as higher-than-expected benefit costs weighed on profitability. Total premium grew 4.5%, with Colonial Life up 3.1% and international operations rising 10%, supported by ongoing digital capability investments.
3. Strong Capital Base and Returns
Unum ended the period with $2.3 billion in holding company cash, bolstering its financial flexibility. Management increased the dividend by 10% and repurchased over $1 billion of shares, signaling confidence in its capital deployment strategy.