Unum Group reiterated at Overweight by Piper Sandler given favorable earnings

Published 15/01/2025, 14:42
Updated 15/01/2025, 16:12
Unum Group reiterated at Overweight by Piper Sandler given  favorable earnings

On Wednesday, Piper Sandler reaffirmed its optimistic stance on Unum Group (NYSE:NYSE:UNM), maintaining an Overweight rating.

The endorsement comes amid anticipations for the upcoming Presidential inauguration over the holiday weekend and its potential implications for the life insurance sector.

The firm highlighted the potential benefits of the "Make America Healthy Again" initiative for life insurance companies, particularly those specializing in underwriting.

Piper Sandler's analysis suggests that improved health outcomes could significantly impact the frequency and severity of claims, especially for Unum Group's closed long-term care (LTC) block, which has an average attained age of around 59.

The firm reiterated a price target of $82.00 for the compmany's stock.

Unum Group's favorable earnings in recent years were noted, with the majority of its business based in the U.S. The closed LTC block, in particular, stands to gain from true healthcare spending improvements. The company has also experienced improved utilization trends across various business segments, not just the closed LTC block.

The integration with HR management platforms has been pointed out as a contributing factor to the company's performance. Platforms such as ADP, Workday (NASDAQ:WDAY), and UKG have been instrumental in leading to better recoveries, although Piper Sandler does not cover ADP.

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