Hartford Insurance Vs. Unum Group: One's Cheaper With Superior Returns

May 02, 2025 9:19 PM ETUnum Group (UNM) Stock, HIG Stock, , , 11 Comments
Joseph E. Jones
664 Followers
(12min)

Summary

  • Unum and Hartford share a focus on employer-based group benefits, but differ in underwriting risk, earnings drivers, and valuation.
  • Hartford continues to deliver stable underwriting results and double-digit book value growth, but catastrophe exposure remains a structural headwind.
  • Unum is executing well on capital redeployment following its LTC reinsurance deal, offering higher ROE and a more attractive total shareholder yield.
  • Both have held up well amid rate volatility, but Unum's valuation and return profile present the stronger setup for dividend growth investors.

Outsider concept. Beating competitors and dominate the market.

Olivier Le Moal

My earlier piece on Unum Group (NYSE:UNM) from November 2024 focused on the company's balance sheet, de-risking efforts, and impressive shareholder returns. Since then, the stock has outperformed most large-cap financials and is trading near 52-week highs. I haven’t

This article was written by

664 Followers
Joseph Jones, professor at The University of Southern Mississippi, has over fifteen years of experience studying the market. He focuses on portfolio construction from a dividend growth investor's perspective. The insights expressed in his research are solely his own; they do not represent the views or financial interests of his employer.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of UNM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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