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.


Discover Italy In 2015 With The Chamber

The Chattanooga Area Chamber of Commerce will host Destination Italy, a trip to Tuscany and Rome, Aug .  18-26, 2015.   Destination Italy will explore Rome, Florence, Montecatini, Portofino and Pisa, visiting sites including the Colosseum, the Leaning Tower of Pisa and Florence’s Gallery of Fine Arts where Michelangelo’s David statue is housed. Leisure time is also ... (click for more)

Chamber Holds Second Annual Construction Seminar

The Chamber’s Second Annual Construction Seminar took place today and provided training and networking opportunities for construction-related businesses and anyone interested in forging business connections with minority, women and veteran owned businesses, small businesses and HUBZone businesses.  Major employers and prime contractors such as Rentenbach Constructors Incorporated ... (click for more)

Jo Ann Cronan Receives 6-Count Indictment For Bribing Voters In Polk County

The Tennessee Bureau of Investigation began an investigation on July 24, into allegations of illegal activities related to the August general election in Polk County. This investigation was commenced at the request of District Attorney General Stephen Crump. The Tennessee Bureau of Investigation, along with Calvin Rockholt, criminal investigator for the Office of the District Attorney ... (click for more)

Shooting At Woodlawn Apartments Claims Life Of 20-Year-Old Male; Victim Shot Multiple Times

A shooting late Monday night at the Woodlawn Apartments has claimed the life of a 20-year-old male. At approximately 10:57 p.m.. the Chattanooga Police Department responded to a gunshot wound call at 2300 Wilson St. Hamilton County EMS transported the victim to a local hospital, where he later succumbed to multiple life-threatening gunshot wounds. The victim has been transported ... (click for more)

Chattanooga Has Lost Its Most Popular Citizen - Luther Masingill

Chattanooga has lost its most popular citizen – Luther Masingill. Although we are saddened we cherish the memories.  All of us have a Luther story.  Mine is the first time I met Luther.  This was before TV and all of Chattanooga listened to Luther on the radio.  I was 12-years-old.  Some of my buddies and I had gone to the State Theater in downtown ... (click for more)

Roy Exum: An Election Day Fable

Every day I am peppered with emails that friends send to me from across the country so I am unsure of where the fable you are about to read originated. But with early voting for the November general election now in full swing, I think everyone who will -- or will not -- take part in freedom’s greatest privilege should read this story because I believe there is a great lesson contained ... (click for more)