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.”

New Hamilton County Businesses

Here are the new business licenses from the County Clerk's office: 309 MEDIA 100 CHEROKEE BLVD SUITE 2112 CHATTANOOGA, TN 37405 A TOTAL EDGE 8916 BRAMLETT ROAD HARRISON, TN 37341 A-1 TAXI AND TRANSPORTATION LLC 8908 DRAKE PARKWAY ROAD CHATTANOOGA, TN 37416 ADVANCED COMMERCIAL GROUP, INC VARIOUS LOCATIONS CHATTANOOGA, TN 37400 ADVENTUREITUS ... (click for more)

TVA Clears Next Hurdle For Small Modular Reactors

The potential for Small Modular Reactors in the TVA’s operating fleet reached another milestone this month. The Nuclear Regulatory Commission has accepted and docketed the utility’s early site permit application for the potential construction and operation of multiple SMR units at the Clinch River Site in Oak Ridge. This action means that the NRC staff may now begin its technical ... (click for more)

Walker Charged With Sunday Night Murder Of Girlfriend In LaFayette

A 29-year-old Walker County man has been charged with murdering his girlfriend, also 29. Sheriff Steve Wilson said David Ryan Walker was charged in the slaying of Candace Ann Hankins. He said she was killed inside a house on Wheeler Road in LaFayette and her body was found in woods behind the house. The sheriff said Walker called relatives to express remorse about the killing. ... (click for more)

Man With Gun Runs From Police At Hamilton Place Mall; Pushes Shoppers Out Of The Way

A man who was found to be armed with a handgun was chased by police early Saturday afternoon. He pushed shoppers out of the way during the pursuit, which included racing down an escalator.   Erwin J. Rogers, 22, of 6111 Nottingham Dr., is facing multiple charges.    Around 1:50 p.m., Chattanooga Police officers working at the Hamilton Place Mall ... (click for more)

Beyond Freedom Of Speech

Yes, most people know about the First Amendment to our Constitution, "The right, guaranteed by the First Amendment to the U.S. Constitution, to express beliefs and ideas without unwarranted government restriction."  I being a "deplorable" draw the line when people block traffic, try to disrupt, and even stop an activity through malice and disregard for others. Case being ... (click for more)

Roy Exum: What Else $3 Can Mean

Orchard Knob Middle School, located on North Highland Park Avenue in Chattanooga, led every other secondary school in the state of Tennessee last year with 6.8 percent of its students expelled. So as people are working feverishly to keep the school from being taken over by the state’s Department of Education, allow me to pose a question. Last Friday during the last period of ... (click for more)