Near-Term Underwhelming – But Still a Positive for Tail Risk Reduction Embedded

Research evidence excerpt

Near-Term Underwhelming – But Still a Positive for Tail Risk Reduction Embedded

Financials | Global Insurance - Life

July 06, 2026

Unum Group Thomas Gallagher, CFA David Motemaden, CFA 212-446-9439 212-497-0832

UNM | $92.34 Thomas.Gallagher@EvercoreISI.com David.Motemaden@evercoreisi.com

Outperform | Target Price/Base Case: $106.00 (from Nicolas Lu Peter Knudsen

$103.00) 212-497-0812 212-708-8497

Company Update Nicolas.Lu@evercoreisi.com Peter.Knudsen@evercoreisi.com

Near-Term Underwhelming – But Still a

Company Statistics

Positive for Tail Risk Reduction Embedded 52-Week Range $68.28 - $93.21

Market Capitalization (M) $14,238 in Valuation

Shares Outstanding (M) 205 Earlier today, UNM announced an LTC risk transfer deal with Fortitude

Dividend Yield 3.5%

Upside/Downside 18.3% for $3.8bn of individual LTC reserves. This represents 26% of its total

Price/Earnings 11.7 LTC and 52% of individual LTC block, and with this deal the remaining

Forward P/E 11.7 individual LTC reserves in Fairwind have now all been reinsured.

Price/Book Value 1.17 Compared to prior LTC risk transfer deals where other liabilities were

Fiscal Year End Dec bundled as part of the transactions, the deal announced today was for

LTC only.

We believe the initial share price reaction has been negative largely 1 Year Price History

because we and investors had been hoping for a larger deal with more

favorable capital return implications – but we believe UNM was more

focused on tail risk reduction, which should set them up better down the

road, while sacrificing some near-term benefits for shareholders. By

financing most of the transaction with holding company excess capital,

UNM is leaving more of a capital / reserving buffer backing lower tail

risks, which could represent more upside down the road if UNM