Unum released its third quarter results on Tuesday, reporting on another good quarter for the company -- the 14th consecutive quarter it has met or exceeded Wall Street estimates.
After-tax operating income for the quarter was $211.6 million, or 64¢ per share, in line with last year’s results and also with Wall Street estimates. Net income for the quarter, which included net realized after-tax investment gains of $9.5 million, was $221.1 million compared to $108 million last year.
Most of Unum's businesses performed well and met expectations for the quarter. The full earnings release is attached, but some of the main highlights of the quarter include:
- Operating earnings for Unum US increased nearly 15 percent to $197.1 million in the third quarter, driven primarily by the ongoing profit improvement in the group disability line of business. While sales declined seven percent due largely to economic factors (especially the high unemployment rates), core market sales for our group lines showed continued positive momentum, increasing 11 percent for the quarter.
- Operating income for Unum UK declined to $58.7 million, primarily driven by a lower exchange rate and lower premium income.
Officials said, "Just as we are seeing in the U.S., our existing customers in the U.K. are not growing, which adversely impacts our premium, or revenue. While we are naturally concerned about a decline in revenue, we are encouraged by the strong sales we experienced in the quarter."
- Colonial Life’s operating results were strong for the quarter, with operating income rising six percent to $70.4 million. Profit margins remained solid, and, despite the difficult environment, sales increased more than three percent in the quarter.