Unum Group (UNM) Still Favorable After Two Harbors Merger - Citizens

Citizens analyst Mikhail Goberman reiterated a Market Perform rating on Unum Group (NYSE: UNM).

The analyst commented, "Before market open today, UWM Holdings Corporation (UWMC), the parent company of the wholesale mortgage giant United Wholesale Mortgage, announced that it had entered into a merger agreement to acquire the MSR-focused Agency MREIT Two Harbors Investment Corp. (TWO); we reiterate our Market Perform rating. This deal is an all-stock transaction at a fixed share exchange ratio of 2.3328x, which implies a price of $11.94 per share of TWO common stock, or roughly $1.27 billion in total equity value. The price paid equates to 1.13x TWO’s fully-diluted tangible book value of $10.57 per share (this figure excludes preferred stock liquidation preference and goodwill from tangible equity and adds roughly 2.0M RSU and PSU shares to the 106.1M share count as of 9/30/25) and also represents an ~20% market premium to TWO’s last closing price. With UWMC shares currently trading at 12.8x our 2026 adjusted EPS estimate of $0.40 versus a peer group median of 10.2x, we continue to view the shares as reasonably fairly valued and reiterate our Market Perform rating."

For an analyst ratings summary and ratings history on Unum Group click here. For more ratings news on Unum Group click here.

Shares of Unum Group closed at $77.91 yesterday.

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