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.”

Chattanooga Chamber Business Calendar Oct. 3-10

MON/3 Bubbly vs. Brews (A Startup Week Event) 5:30-7:30 p.m. Chattanooga Chamber Alley: 811 Broad St. The purpose of this event is corporate matchmaking with local startups. If you’re a startup, click here to register.   MON/3 – NEWtrepreneur? 10 Bookkeeping Mistakes to Avoid from the Start (StartUp Week) Noon – 1:30 p.m. TN Small Business ... (click for more)

Supreme Court Abolishes Mutuality Element Of Collateral Estoppel

In a unanimous opinion, the Tennessee Supreme Court has modified the state’s approach to collateral estoppel – a legal principle governing the relationships and issues between parties that are involved in successive legal proceedings. The decision will prevent a person who has been convicted of a criminal offense from contesting guilt in a subsequent civil lawsuit brought by the ... (click for more)

Boyd Questions Effectiveness Of Read 20 Program; Coppinger Defends It

County Commissioner Tim Boyd said he questions the effectiveness of the Read 20 pre-K literacy program and wants the director to come before the County Commission to answer questions.   County Mayor Jim Coppinger defended the program, noting that it was the creation of former County Mayor Claude Ramsey.   Commissioner Boyd said the low literacy level hearing ... (click for more)

Corker Says Without Budget Reform, Washington Is “Laying A Huge Burden On Future Generations”

In remarks on the Senate floor  on Wednesday , Senator Bob Corker joined a number of colleagues to discuss the broken federal budget process.   “The processes that we have in place make it impossible for us to really deal with our country’s fiscal issues,” said Senator Corker. “Today is the perfect example of that: we pass a continuing resolution ... (click for more)

Jimmy Templeton Will Be Missed At The City Yards

If only we had known about the Chattanooga City Council's planned retirement send off for Jimmy Templeton of Public Works, the room would have been filled to overflowing with his friends and admirers - including me.   I have had the honor of knowing and working with Jimmy since the 1970's (and also knew his father "Big Jim").  Jimmy was a strong right hand for whoever ... (click for more)

Roy Exum: Vin Scully’s Last Time

It is said that the opening paragraph of my favorite ode to baseball should be the centerpiece for the canon of sports literature. It was written by former commissioner Bart Giamatti in "The Green Fields of the Mind,” a most marvelous essay to the last day of the regular season in the major leagues. “It breaks your heart. It is designed to break your heart. The game begins in ... (click for more)