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: ACE TREE EXPERTS 10203 NISSI WAY SODDY DAISY, TN 37379 BURNING BUSH ENTERPRISES 9840 AUTUMN GLEN DRIVE SODDY DAISY, TN 37379 CAMERON COKER PHOTOGRAPHY 200 HANEY DR CHATTANOOGA, TN 37411 CONCRETE PUMP PARTNERS 375 WAUHATCHIE PIKE CHATTANOOGA, TN 37419 COOL SPRINGS 3808 GRACE ... (click for more)

Obedience Club Of Chattanooga Has New Session Starting Jan. 5

The Obedience Club of Chattanooga will begin its next six-week session of obedience, rally, and agility classes for puppies and dogs on Monday, Jan. 5,  at its training facility four miles south of Chattanooga on Highway 193 in Flintstone. Registration will be held on Sunday, Jan. 4, from 1-3 p.m. at the training facility.  During registration, various OCC dog/handler ... (click for more)

Police Looking For Scruggs In Stabbing Of Man, Woman

 Police are looking for 30-year-old Sean Michael Scruggs in the stabbing of a man and a woman. The victims were listed as Charde N. Joseph, 27, and Kameron Sales, 18. They s uffered non-life threatening injuries.   W arrants are on file for Scruggs for especially aggravated burglary, attempted murder, aggravated assault (domestic) and vandalism. The incident ... (click for more)

Bobby Dodd Lawsuit Against City Moved To Federal Court

A lawsuit brought by former Chattanooga Police Chief Bobby Dodd against the city of Chattanooga and the Chattanooga Fire and Police Pension Fund over his pension has been moved to Federal Court. The lawsuit was earlier filed in Chancery Court by attorneys Jerry Tidwell and Adam Izell. The suit says former Chief Dodd opted for a plan that would have half of his pension go to ... (click for more)

Please Don't Close The Piccadilly Cafeteria At Hamilton Place - And Response

Oh, no. The Piccadilly Cafeteria at Hamilton Place is closing.  Its last day is Christmas Eve.  I will miss the great food they have there but most of all I will miss their servers, cashiers and waitresses.  They are all so friendly and accommodating.  They make it like it’s a home-style restaurant. I sure wish there was some way that Hamilton Place and ... (click for more)

Roy Exum: 10 Tasks For This Week

In 1993 a 95-year-old man named William Snell created a list called “Life’s Little Instructions.” His list has swirled around in the Internet ever since and it is, indeed, a delightful checklist to keep us focused in the right direction. Curiously, when I read over it this past weekend, it dawned on me that if each of us would try to accomplish just 10 items on Mr. Snell’s list ... (click for more)