Unum Group UNM has agreed to divest its Medical Stop Loss business to Amynta Group. This move will help the insurer intensify its focus on its strategic growth priorities. The divestiture is estimated to be completed in the third quarter of 2024.
Amynta Group is a leading insurance services provider. Following its acquisition, the stop-loss business will operate as a full-service managing general underwriter under Amynta Risk Solutions. The addition of Unum’s Medical Stop Loss business will enhance Amynta Group’s product portfolio and help it serve clients better with comprehensive solutions.
John Doucette, CEO of Amynta Risk Solutions, stated, “Unum has built a strong stop-loss business, bringing great expertise and capabilities to the market. We will continue to invest in the business to drive growth and innovation in the medical stop loss market.”
Unum is ranked as the leading disability income writer and the second-largest writer of voluntary business in the United States. The medical stop-loss business is part of Unum’s group disability line of business, which also includes long-term and short-term disability and fee-based service products. With this divestiture, the company intends to intensify its focus on leveraging enhanced capabilities to drive top-line growth and, in turn, achieve high single-digit bottom-line growth in 2024. Healthy in-force block growth, higher sales, strong persistency in group lines, growth of new product lines and favorable risk results should continue to drive Unum’s results.
Shares of Unum have gained 11% year to date, outperforming the industry’s increase of 6.8%. Favorable sales trends and risk experience, strong persistency, an improving rate environment and a solid capital position continue to drive this Zacks Rank #3 (Hold) insurer.
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Stocks to Consider
Some top-ranked stocks from the insurance industry are HCI Group, Inc. HCI, Palomar Holdings PLMR and ProAssurance PRA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCI Group earnings surpassed estimates in each of the last four quarters, the average beat being 139.15%. In the past year, HCI has rallied 45.1%.
The Zacks Consensus Estimate for HCI’s 2024 and 2025 earnings implies 57.6% and 4.3% year-over-year growth, respectively.
Palomar’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 15.10%. In the past year, PLMR’s stock has surged 45.5%.
The Zacks Consensus Estimate for PLMR’s 2024 and 2025 earnings indicates 26% and 18% year-over-year growth, respectively.
ProAssurance earnings surpassed estimates in two of the last four quarters and missed in the other two. In the past year, PRA’s stock has lost 28.1%.
The Zacks Consensus Estimate for PRA’s 2024 and 2025 earnings suggests 371.4% and 72.6% year-over-year growth, respectively.
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ProAssurance Corporation (PRA) : Free Stock Analysis Report
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Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report
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