How Solid Underwriters in Unum Group Lead to Satisfied Shareholders
Unum Group, listed on the New York Stock Exchange as UNM, provides in the sphere of workplace life and disability insurance, offering a range of related products. The organization operates through different reporting segments such as Unum US, Unum International, Colonial Life, and Closed Block, marketed and sold through field sales personnel and a network of independent brokers and consultants. The US segment forms the bulk of the revenue, deriving its earnings primarily from workplace benefits such as disability and life insurance. International operations mainly focus on markets like the UK and Poland. Colonial Life offers a similar product range, with extra coverage for critical illnesses like cancer, primarily targeting private-sector employers with fewer than 1000 employees.
The balance sheet of Unum Group is robust, with a healthy investment portfolio and $3.4B in long-term debt. Over the past decade, the company has returned approximately $4.9B to their shareholders through buybacks and dividends, and even during the challenging COVID period, the company’s risk models proved robust due to sound pricing that ensured profitability. Looking ahead, Unum’s leadership believes it can continue to raise prices and increase sales, relying on digital platforms to ease insurance sales.
In terms of potential risks, if the market appreciates and the price of shares increases, a continued repurchase program could negatively affect the long-term value for shareholders. A recession could impact employee capabilities to afford these optional benefits or lead to layoffs, resulting in a lower pool of potential policyholders. Therefore, a slowdown in the earnings growth rate during a recession could affect valuation. However, overall, Unum Group presents a solid investment opportunity in the insurance space with its consistent profitability, investment returns, and the improving operating efficiency.
For further assistance relating to Unum Group’s insurance services, customers can reach out to them directly. Similarly, for matters concerning unemployment or disability benefits, individuals can reach out to the appropriate department in their state. In California, for example, one may want to learn how to get a hold of edd or how to contact a live person at edd California. Websites such as eddcaller.com provide valuable resources to help guide those who need to reach EDD or another state’s equivalent department for support and information.