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.



Get A Grip Resurfacing Franchise Has New Owner

Get A Grip Chattanooga has a new owner. Nick DelPapa has joined the nationwide network of Get A Grip Franchising, taking over the existing franchise that has been transforming the resurfacing industry in the greater Chattanooga area. Get A Grip Resurfacing repairs and resurfaces cracked fiberglass bathtubs, scratched or stained porcelain tile and even Formica, laminate or cultured ... (click for more)

Shaw Expands Resilient Manufacturing Capabilities, Adding USFloors Product Lines

Shaw Industries Group, Inc. has completed a $30 million investment to manufacture composite core LVT flooring in its resilient manufacturing facility in Ringgold, known as Plant RP. Shaw started manufacturing LVT in this state-of-the-art plant in 2016. This latest installation will manufacture Shaw and USFloors WPC and rigid core products by the end of third quarter this year. ... (click for more)

TVA Budget Remains Flat For FY 2018; Includes 1.5 Percent Retail Rate Increase

The Tennessee Valley Authority Board of Directors on Wednesday approved a $10.37 billion budget that will keep TVA on track to achieving its long-range goals of improving financial and operational performance and reducing debt. The FY 2018 budget keeps operating and maintenance spending flat, maintains low energy costs and invests in TVA’s generation and transmission systems.  ... (click for more)

Mae Beavers Resigns From State Senate To Focus On Governor Race

Tennessee State Senator and conservative Republican candidate for Governor Mae Beavers has announced that she will resign her seat in the legislature effective Friday , Sept. 1,  at noon to focus on her race for governor .   She also disclosed key additions to her gubernatorial campaign team. “It is with mixed emotions that I am announcing that ... (click for more)

Is This Really About Slavery?

The greatest thing that came out of the American Civil War came after the cessation of hostilities. After four years of deadly, devastating, agonizing war and over 600,000 Americans had died, the armies came to a halt. The killing ended, but the suffering continued for many of the wounded and those whose homes and fortunes had gone up in smoke and been left as rubble. ... (click for more)

Roy Exum: Ordinary To Extraordinary

A handsome black guy, from the looks of it still in high school, appeared in a video during the A Celebration of Valor luncheon at the Chattanooga Convention Center Tuesday afternoon and described a Medal of Honor winner. Easily over 500 were there, including our famed Charles Coolidge, and all heard this young achiever say, “A Medal recipient is an ordinary person who performs ... (click for more)