The Path Forward for UNM

Research evidence excerpt

The Path Forward for UNM

Financials | Global Insurance - Life

July 20, 2026

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

UNM | $89.00 Thomas.Gallagher@EvercoreISI.com David.Motemaden@evercoreisi.com

Outperform | Target Price/Base Case: $111.00 Nicolas Lu Peter Knudsen

Company Update 212-497-0812 212-708-8497

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

Company Statistics Following UNM's recent LTC risk transfer deal and muted stock price

52-Week Range $68.28 - $93.21 reaction, we consider how expensive future deals might be, when those

Market Capitalization (M) $14,131 deals might happen, and how to think about valuation for its pure play

Shares Outstanding (M) 205 group benefits and voluntary benefits focused businesses after LTC is

Dividend Yield 3.5%

Upside/Downside 29.0% gone.

Price/Earnings 11.2 Our bottom line is we think an optimistic scenario could have more risk

Forward P/E 11.2

transfer deals announced around YE26 or early 2027 for the next deal Price/Book Value 1.12

Fiscal Year End Dec (likely remaining ILTC) and then by mid to late 2027 for the second

(likely it's GLTC in Fairwind).

On pricing, we suspect the next ILTC deal will consume most of the

1 Year Price History $500mm of excess capital sitting in PLA as part of its net negative cede

expense. A final GLTC transaction could be the bigger value unlocking

event. This block has 40% reserving margin over best estimate, much

more limited tail risk in the product features but also is less mature,

which creates some offsetting uncertainty discount. We think this final

GLTC deal could free up, rather than consume capital in the $500mm

range, as we think the 'cost' should come in below the 40% sufficiency

margin.