First Take 2Q26 Earnings: Largely Stable Businesses

Research evidence excerpt

First Take 2Q26 Earnings: Largely Stable Businesses

Update

July 28, 2026 10:08 PM GMT

Morgan Stanley & Co. LLCMUnum Group | North America Bob Jian Huang

Equity Analyst

First Take 2Q26 Earnings: Bob.Huang@morganstanley.comJie Cheng +1 212 761-6136

Research Associate

Jie.Cheng1@morganstanley.com +1 212 761-3878

Largely Stable Businesses

Unum Group (UNM.N, UNM UN)

Insurance - Life/Annuity | United States of America

AlphaSignals Earnings Reaction

Stock Rating Equal-weight

Unchanged Modest shortfall Modest revision lower Industry View Attractive

Impact to our thesis Financial results versus consensus Direction of next 12-month Price target $87.00

consensus EPS Shr price, close (Jul 28, 2026) $87.93

Mkt cap, curr (mm) $14,456

Source: Company data, Morgan Stanley Research 52-Week Range $93.20-68.29

Looking for the next stage of growth and earnings: Post LTC transaction, the

thesis for Unum is quickly shifting towards the ability to manage underwriting, and

maintain stable level of growth and ROE. While results were largely in line with

expectations, there were multiple moving pieces for the quarter. Group Disability

and International once again saw weaknesses. For Group Disability, elevated benefit

ratio driven by paid family and medical leave pressured results again. That said,

going forward, we expect this line item to be better understood. For International,

higher benefit ratio driven by large claims in group long-term disability in UK

weighed on performance. Overall International Segment has been facing some

pressure for several quarters, and the key investment debate going forward is how

to improve the underperforming segments, with LTC becoming less of an overhang.

While we expect the company to achieve its overall guidance, certain segment-level