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.


FSG Bank Ends Successful ‘Pay It Forward’ Campaign With $2,500 Donation To Habitat For Humanity

First Security Group, Inc., the holding company for FSG Bank, announced the bank has ended its “Pay It Forward” campaign and will officially make a $2,500 donation to the Habitat for Humanity of Cleveland after receiving an incredible response from the community to its unique GO Money campaign.   FSG Bank launched the GO Money campaign last month as part of its grand opening ... (click for more)

Fleet Feet Sports To Open New Chattanooga Store In Mid-October

Fleet Feet Sports   announces the mid-October opening of a new store in Chattanooga. The store will be the brand’s first location in the Chattanooga market and will open in the NorthShore neighborhood at 313 Manufacturers Road.   Running store veteran Steve Carter will operate and manage the store, stepping into the leadership role after serving as general manager ... (click for more)

Grill Fire Causes Damage To Signal Mountain Home

A grill fire caused damage to a Signal Mountain home on Friday evening. At  7:23 pm , a 911 call was made reporting a house fire at 306 Dawn Street on Signal Mountain. The Signal Mountain Fire Department responded reported heavy fire coming from the back porch and eaves of the home. Signal Mountain FD requested a mutual aid response for additional manpower. The ... (click for more)

Civic, Political Leader Mai Bell Hurley Dies At 87

Civic and political leader Mai Bell Hurley has died at age 87. She was the first woman to serve on the Chattanooga City Council. Ms. Hurley was also a longtime advocate for the arts and a leader in United Way. She was a leader in Chattanooga Venture that led to the redevelopment of downtown and the riverfront.  She most recently served on the Library Board. ... (click for more)

Senator Corker: Americans Deserve To Know Where Their Elected Leaders Stand On The Iran Deal

As I traveled across the Volunteer State during August, I spoke with many Tennesseans about the nuclear agreement between Iran, the United States, and other world powers. While opinions of the agreement vary, there is perhaps no greater geopolitical issue facing the world today than preventing a nuclear-armed Iran.  A strong agreement that would stop Iran from obtaining ... (click for more)

Roy Exum: We Ain’t A Whirlygust

I have lived in and around the State of Tennessee my entire life and I have spent that last 50 years writing words in stories every day. I love clever words, words that fit perfectly in a sentence. I also like funny words, clever phrases and all sorts of “slang” words. This week the Slate website came out with “The United Slang of America” and, naturally, I was eager to see what ... (click for more)