Unum Has Rise In Operating Income

Wednesday, May 07, 2014

Unum released its first quarter earnings report today, including a rise in operating income.

After-tax operating income was $225.7 million, or 87 cents per share, a 4.7 percent improvement over the $215.6 million, or 80 cents per share, Unum earned in the first quarter of 2013. Net income was $228.9 million, or 88 cents per share, compared to net income of $212.6 million, or 79 cents per share, for the first quarter of 2013.

Details are in the attached earnings announcement, including a reconciliation of non-GAAP financial measures, but here are some highlights from the quarter:

  • Operating income for Unum US rose slightly to $210.
    8 million. Results this quarter were driven by favorable performance in the group life and voluntary lines of business. Sales increased by 7.2 percent in the quarter, with the pipeline looking into the second quarter encouraging as well.
  • Unum UK operating income increased 9 percent to £22 million ($36.5 million) as the business continues to make good progress in the re-pricing and repositioning of its group life business. While total sales were down slightly due to the pricing actions in the group life business, group disability sales increased 5.7 percent.
  • Colonial Life generated one of its strongest quarters with operating income increasing 5.3 percent to $79.4 million. These solid results were driven by strong risk results and premium growth. Led by strong commercial market activity, sales increased 6.5 percent with solid momentum in this business as well.
  • The performance of the Closed Block was again in line with expectations, with operating income of $29.1 million.
  • The company’s investment portfolio "remains in excellent shape and maintains very solid credit quality. The company is facing a very difficult interest rate environment, however, and holding on to more cash than normal as it looks for better opportunities to invest its capital."

Lastly, the company’s capital position remains quite strong and continues to give Unum significant financial flexibility. The company bought back another $100 million of its stock during the quarter and has now repurchased shares in 15 of the last 16 quarters – a record few in this industry can match.


Scam Phone Calls Continue; IRS Identifies Five Easy Ways To Spot Suspicious Calls

The Internal Revenue Service issued a consumer alert today providing taxpayers with additional tips to protect themselves from telephone scam artists calling and pretending to be with the IRS.   These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They ... (click for more)

Tennessee Electric Cooperative Association Names Alex Perkerson Government Affairs Specialist

The Tennessee Electric Cooperative Association, a trade group representing the interests of electric cooperative members across the state, announced that Alex Perkerson joins the association as government affairs specialist. In this role, Ms. Perkerson will assist with the association’s legislative and grassroots efforts. “Tennessee’s electric cooperatives work to inform ... (click for more)

16-Year-Old Shot Near Emma Wheeler Homes

A 16-year-old was shot near Emma Wheeler Homes on Sunday night. At approximately 7:40 p.m., Chattanooga Police received a call of a person shot from a local hospital. Officers spoke to the victim, a 16-year-old black male, who was transported to a local hospital in a personal vehicle. The victim’s injury is minor and non-life threatening. Investigators spoke to the victim ... (click for more)

Helen Burns Sharp Asks Recovery Of Legal Fees In Successful Black Creek TIF Lawsuit

Helen Burns Sharp, citizen activist who sued to try to stop a $9 million Black Creek Tax Increment Financing (TIF) and won, is seeking to have her legal expenses paid by the city and the developers. Ms. Sharp said in a court filing that her legal bills to attorney John Konvalinka are $74,427 thus far. Chancellor Frank Brown ruled in favor of Ms. Sharp, saying the Sunshine ... (click for more)

Decimating The Chattanooga Public Library

Corinne Hill claims that the library is just undergoing a normal weeding process for eliminating books.  She has bragged that she's responsible for the elimination of over 100,000 books - with more to go. "Normal" weeding is not rampant throwing away.  Yes, books go to the Friends for their sale - where they get $2 for a $75 book and thousands wind up being recycled ... (click for more)

The Many Lessons I Learned From Helen McDonald Exum

Helen McDonald Exum was my friend and mentor. As I think of her passing I can only imagine the celebration that is happening in heaven as the news of her arrival is being told. I am sure that there is a party that not only has she organized but that there is not a detail that has been left to chance. I am sure that it is the grandest of events, for you see, she has been planing ... (click for more)