Unum Reports Strong Third Quarter

Monday, November 4, 2013

Unum’s third quarter earnings reflect another strong quarter for the company, officials said. Solid risk results across the company’s core operating businesses, along with the results of its Closed Block continuing to track with expectations, resulted in operating earnings per share increasing approximately 6 percent over the third quarter of last year.

After-tax operating income for the quarter was $224.6 million, or 85 cents per share, compared to $224 million, or 80 cents a share, in the third quarter of last year. Net income, which includes certain non-operating items, was $205.7 million, or 78 cents a share, compared to $230.2 million, or 83 cents per share, in the third quarter of 2012. 

Here are some highlights from the quarter:

Operating income for Unum US rose 1.6 percent to $219.8 million, led by favorable results in its group disability and group life businesses. While sales levels were relatively flat from last year, this business had good growth in several of its target markets. For example, sales of group long term disability increased 9 percent in the quarter.   

Unum UK saw solid improvement as the pricing and repositioning actions within the group life business are beginning to have an impact on results. Operating income was $31.3 million (£20.1 million), up more than 13 percent from $27.5 million (£17.3 million) in the third quarter of 2012. 

Colonial Life continued to perform well, with solid risk results and sound expense management driving another good quarter for this business. Operating income rose slightly to $69 million, and, while total sales were slightly below last year’s levels, there was growth in a number of markets. 

Operating income for the Closed Block, which includes business lines the company no longer sells but still services, was consistent with both last year’s quarter and company expectations. 

The company continues to benefit from a quality investment portfolio and strong capital position. During the quarter, it repurchased $75 million of stock, bringing total year-to-date in the buy-back program to $269 million.  

On a separate note, the company also announced the addition of Theo Bunting, group president of Utility Operations for Entergy Corporation, to its board of directors. At Entergy, Mr. Bunting is responsible for the utility’s financial results, as well as regulatory support and regulated retail activities.

 “We are very fortunate to have Theo join our board,” said William J. Ryan, chairman of the board of Unum Group.  “He brings a wealth of financial and regulatory expertise to our board, and I am confident his contributions will be a tremendous asset to Unum.”

Nominations Now Open For The 2015 Latino Leadership Awards

The 2015 Latino Leadership Awards will be held on September 21 at the Downtown Chattanooga Mariott.The La Paz Chattanooga Latino Leadership Awards banquet is an annual celebration that honors the contributions area Latino leaders are making across the Chattanooga community. At the event, attendees will recognize 10 extraordinary local leaders for their work and service throughout ... (click for more)

Nine Chattanooga Area Allstate Agency Owners Earn Prestigious Designations

As business leaders and involved citizens in the Chattanooga area, nine Allstate agents earned the Allstate Premier Agency Designation for 2015. The Premier Agency designation is awarded to Allstate agency owners who have demonstrated excellence in delivering an accessible, knowledgeable and personal customer experience while achieving outstanding business results. The designation ... (click for more)

Bradley County Commission Rejects 10-Cent Tax Rise For Lake Forest MS; Firefighters Get $3,000 Raise

With a small crowd of demonstrators sitting in the back of the room with signs that read, “Vote no on property tax increase,” the Bradley County Commission on Monday night finally rejected a proposed 10-cent property tax increase that would have added funds to the construction of a new academic building at Lake Forest Middle School.   Funding for renovations at ... (click for more)

11 Attorneys Apply In 2nd Round For Replacing Judge Stern

Eleven attorneys have applied in the second round of applications to replace Rebecca Stern as judge of Criminal Court's Division II. The applicants are: Christian J. Coder Chattanooga Tracy Cox Signal Mountain Amanda B. Dunn Chattanooga Ardena Juanita Garth Chattanooga Thomas Clifton Greenholtz Ooltewah Andrea DeFay Hayduk ... (click for more)

Why Chattanooga Should Stop Granting Apartment Complex PILOTs

A new report indicates why Chattanooga and Hamilton County officials do not need to extend PILOTs to apartment complex developers. Demand is high, therefore developers will continue to build to meet the demand without PILOTs. What is truly needed in the Chattanooga metroplex is low-income affordable housing. “Homeownership Drops to Lowest Level in Decades” ... (click for more)

Roy Exum: Gun Control? Accuracy!

When President Barack Obama responded to the tragic killing of nine people who were worshiping at their beloved Emanuel AME Church in Charleston, S.C., last month, he immediately blamed the gun, saying, “We don't have all the facts, but we do know that once again, innocent people were killed in part because someone who wanted to inflict harm had no trouble getting their hand on ... (click for more)