Insurer's Unum Group's shares could rise: Barron's
NEW YORK |
NEW YORK May 6 (Reuters) - U.S. disability insurer Unum Group's shares, which now trade in the low $20s, could rise 20 percent over the next 12 months, Barron's said.
The insurer, which pays benefits in the event of policyholders becoming incapable of working, is now focusing on profitability rather than market share, and that approach could pay off in the long run, despite its lackluster first-quarter results, the financial weekly said.
Quarterly earnings from the 164-year-old insurer, which was formerly known as Union Mutual, missed analysts' estimates for the third quarter in a row, as it was hurt by the poor performance of its British arm.
"Unum seems to have... forsworn its onetime strategy of building market share by aggressively undercutting rivals' prices," Barron's said. (Reporting By Dhanya Skariachan; Editing by Marguerita Choy)
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