Unum Operating Earnings Rise In Second Quarter

Wednesday, July 30, 2014

Unum, a provider of financial protection benefits in the U.S. and U.K., released its second quarter earnings report Wednesday with results that reflect a strong quarter. The company’s core businesses – Unum US, Unum UK and Colonial Life - produced higher year-over-year operating earnings with some very encouraging sales trends, said officials. Overall, operating earnings per share rose 11 percent, which keeps the company at the upper end of its outlook for the year.

After-tax operating income for the quarter was $234.8 million, or 91? per share, compared to $218.5 million, or 82? per share, in the second quarter of 2013. Net income was $242.5 million, or 94? per share, compared to $218.6 million, or 82? a share, a year ago.

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

•Operating income for Unum US rose slightly to $218.8 million, an increase of 2.2 percent over the second quarter of last year. In addition, sales for Unum US increased 40 percent, a sharp jump from last year when market activity was much slower, in large part due to the implementation of healthcare reform. 

•Unum UK continued to deliver solid year-over-year margin improvement and earnings growth, with an 8.3 percent increase in operating income (in local currency). While sales were down about 11 percent, persistency is trending higher relative to the first quarter of this year and premium income rose.

•Colonial Life also delivered strong results, with operating income increasing 5.9 percent to $75.3 million. These solid results were driven by stable risk results and solid premium growth. Sales increased again this past quarter, with a 7.7 percent increase over last year’s results.

•The overall results of our Closed Block, which consists of individual disability and long-term care products which Unum no longer sell but still service, were strong this quarter.  Long-term care continues to be a difficult business to manage, especially in this low interest rate environment.

•The company’s investment portfolio remains in excellent shape, but it, too, is challenged by today’s low interest rates.

•Finally, the company’s capital position is strong, giving Unum significant financial flexibility. The company bought back another $100 million of its stock during the quarter.

“It was another very good quarter for us, rounding out a strong first half of the year,” said President and CEO Tom Watjen. “We are well-positioned to capitalize on the opportunities ahead to profitably grow our business by continuing to focus on the things that have contributed to our past success – solid plans, disciplined execution of these plans, and our employees doing their part to support our customers and business.”

Burlington Opens New Location In Hixson At Northgate Mall

Burlington, a leading national off-price retailer, is opening a brand new location in Hixson at the Northgate Mall located at 345 Northgate Mall on Friday at 9:30 a.m. The retailer will host a ribbon cutting ceremony to celebrate jobs, community, and of course, shopping.  Along with the ceremony, Burlington will host its premier philanthropic program, Burlington Gives ... (click for more)

Supreme Court Determines Inmates Are Not Required To Sue Private Prison Operators In County Where Correctional Facility Located

In a unanimous opinion, the Tennessee Supreme Court has determined that a statute requiring lawsuits by inmates to be brought in the county where they were incarcerated does not apply to inmates housed in a privately operated correctional facility. Sandy Eugene Womack is serving sentences for armed robbery and robbery at the Hardeman County Correctional Facility in Whiteville, ... (click for more)

Erlanger Finishes Fiscal Year With $18 Million Profit

After a major loss the year before, Erlanger Health System finished the fiscal year with an $18 million profit, officials announced Monday night. It was well ahead of the $2 million gain that Erlanger had budgeted for, and far better than last year's $8 million loss. The profit was boosted by a first-time $19,587,000 from a Public Hospital Supplemental payment and essential ... (click for more)

Chancellor Rules That IDB Must Reimburse Attorney Fees, Other Legal Costs For Helen Burns Sharp On TIF Lawsuit

Chancellor Pam Fleenor has ruled that Helen Burns Sharp, who sued over the validity of a $9 million Tax Increment Financing (TIF) for a planned major development on Aetna Mountain, should be reimbursed her discretionary costs as well as her attorney fees. Ms. Sharp said in a recent court filing that her legal bills to attorney John Konvalinka were $74,427 at the time. The ... (click for more)

ChattaData Is A Real Advance For The City

This past Tuesday, the city of Chattanooga's new performance management tool called ChattaData was unveiled. As the chairman of the City Council’s Budget & Finance Committee, I am excited to witness the city putting this important information online in a way that is accessible and transparent to all taxpayers. This approach shines light on how we as a city prioritize our ... (click for more)

Roy Exum: It’s ‘Hate The SEC’ Day

The boo birds came out on the fly on the ESPN website Sunday afternoon, this moments after the latest AP College Football “Top 25” included eight teams from the Southeastern Conference.   What set naysayers aglow was Mississippi State, after upsetting LSU 34-29 Saturday night, debuted on the list at No. 14 while Clemson, playing Florida State in an overtime thriller, got tossed ... (click for more)