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.”

FirstBank Names Gordon Chief Financial Officer

Financial services veteran James R. Gordon has been named chief financial officer of FirstBank, effective Jan. 1, 2016, the company announced Tuesday.  Winnie Bunch, CFO for the past 20 years, is moving into a newly created position as chief financial officer for FirstBank Ventures, which operates FirstBank Mortgage, FirstBank Investments and FirstBank Insurance.  ... (click for more)

Clint Mosley Joins MomSource Network Leadership Team

MomSource Network, with offices located in Knoxville, Chattanooga and Nashville, announced that Clint St. Mosley will be joining the organization’s leadership team as vice president of Sales and Operations.  “Since we were established in 2013 as the only company nationally to bring both an employer and a potential employee solution-oriented alternative to the flexible workplace ... (click for more)

City Council Votes To Allow 7-Story Apartment Complex By Southside Historic District, But Ground Floor Must Be Commercial

The City Council voted in favor of the seven-story building on Cowart Street at Tuesday night’s council meeting. However, Councilman Chris Anderson passed an amendment for the ground floor of the building to be used as commercial space rather than residential, as originally intended by Belle Investment Company. A full house gathered at the meeting to hear the verdict for ... (click for more)

Flood Warning Issued For Some Area Creeks; TVA Dams Spilling High Volumes Of Water

A flood warning has been issued for some area creeks, including South Chickamauga Creek in Hamilton County, West Chickamauga Creek near Fort Oglethorpe and Lookout Creek that runs from Trenton, Ga., to Lookout Valley. TVA dams are spilling high volumes of water with the Tennessee River Valley receiving 3-5 inches of rain over the last few days and up to two more inches are ... (click for more)

City Council Travesty

  City Council just voted for a seven-story downtown building in a district zoned for 48' height limit. Setback to the building behind will be 6'. This is to allow the current building owner access to their property to maintain it. What I do not understand is how in the fire district this proposed building is in can a parking deck seven stories tall not have alley access ... (click for more)

Roy Exum: Heard About Henley?

Within minutes after a woman posing as “Katie Brown” posted a picture of her dog with its mouth taped shut on Facebook last Friday morning, hundreds of thousands of people became part of a global witch-hunt. Her Facebook page listed her location in South Daytona Beach and Avon, Conn. But police officers at both locations found out her real name is Katharine F. Lemansky and on Monday ... (click for more)