Unum Has Rise In Operating Income

Wednesday, May 7, 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.


TVA Seeks Comment On Energy Plan During Knoxville Meeting

The Tennessee Valley Authority will host a public meeting Monday with live Internet streaming to review its newly released draft Integrated Resource Plan, a guide to TVA’s energy planning decisions for the next 20 years. The meeting, the second of seven that will be offered around the Valley, will be held at TVA headquarters’ West Tower Auditorium from 7-8:30 p.m. TVA is located ... (click for more)

Customers Can Now Post Reviews On Better Business Bureau Website

The Better Business Bureau (BBB) of Chattanooga serving Southeast Tennessee and Northwest Georgia is launching a customer review service, a new platform for customers to voice favorable or unfavorable experiences they have had with local businesses. “For so many years consumers have asked the BBB for a way to praise businesses for admirable practices and service. Now BBB Customer ... (click for more)

Chattanooga Police Detective Karl Fields Terminated On Code Of Conduct Charges

Karl Fields, former Chattanooga Police detective, was terminated on Wednesday on code of conduct charges. The Chattanooga Police Department said it received a correspondence from the Hamilton County District Attorney’s Office o n Sept. 4, 2014,  informing it of allegations of inappropriate behavior committed by a CPD investigator during the course of a rape investigation. ... (click for more)

Autopsy Says 5-Year-Old Whitwell Boy Died Of Blunt Force Trauma

An autopsy on five-year-old Lucas Dillon of Whitwell says he died of blunt force trauma. The TBI is investigating the death, which is being treated as a homicide. The child, who lived on Jewell Lane Road, was injured on Saturday and died in a hospital on Monday. Lucas was a student at Whitwell Head Start. (click for more)

Physicians Thank Their Patients On Doctor’s Day

March 30 has been set aside as National Doctors’ Day since 1933 as a time to recognize the contributions made by our physicians. While the recognition is appreciated, our greatest satisfaction comes from caring for our patients.  For 132 years, the Chattanooga-Hamilton County Medical Society has been the physicians’ voice as we worked together to improve health of our community. ... (click for more)

Roy Exum: A Tragedy And A Triumph

Two summers ago there was a 15-year-old boy at Atlanta’s Egleston children’s hospital with two big problems. Doctors had discovered the child had dilated cardiomyopathy and the left ventricle in his heart was failing to pump enough blood. Doctors predicted that without a heart transplant he would only live six to nine more months. His other problem was a court-ordered monitoring ... (click for more)