10 Best Performing Insurance Stocks to Buy Now

8. Unum Group (NYSE:UNM)

1-Year Returns: 57.78%

No. of Hedge Fund Holders: 43

Unum Group (NYSE:UNM) is an American insurance provider of workplace benefits and services. The company offers financial protection benefits in the U.S. and the U.K. Unum’s products include disability, life, accident, critical illness, dental and vision, and other related services.

Unum Group (NYSE:UNM) missed the analysts’ earnings estimates in Q4 2024, but managed to report 10% earnings growth for the full year, surpassing initial expectations of 7% to 9%. The company achieved strong sales in the U.S., with approximately a 20% increase in Q4, marking it as the largest sales quarter of the year. The company recorded a ROE of more than 20% in 2024, reflecting strong financial performance. After repurchasing almost $1 billion of shares in 2024, the company has announced to repurchase another $1 billion of its common stock during 2025 beginning on April 1.

The company has also raised its dividend by 15% and expects to generate between $1.3 billion and $1.6 billion of FCF in 2025, indicating the continuous progress and strong financial flexibility. On February 7, Truist raised UNM’s price target from $75 to $90, keeping a Buy rating on the shares. Even though UNM missed Q4 earnings, Truist is positive on the company’s sustained topline growth and profitability along with its excess capital generation.