Unum Group announced that its board of directors has authorized the repurchase of up to $750 million of the company’s outstanding common stock through Nov. 25, 2018.
This new authorization replaces the previous authorization of $750 million that was scheduled to expire on Nov. 26, 2017.
“This action reflects the board’s confidence in the consistent execution of our strategy, as well as in our ability to generate capital,” said Richard P. McKenney, president and chief executive officer. “With our strong capital position, we can continue to invest in our businesses while also deploying capital to further bolster shareholder value.”
The timing and amount of any share repurchases under the new authorization, which may be made in the open market or in privately negotiated transactions, including accelerated share repurchase transactions, will be determined by management based on market conditions and other considerations. The program can be modified, extended, or terminated by the board at any time.
Also, Unum Group announced that its board of directors has authorized an increase of 15 percent in the quarterly dividend paid on its common stock. The new rate of 23 cents per common share, or 92 cents per share on an annual basis, will be effective with the dividend expected to be paid in the third quarter of 2017.
Mr. McKenney said, “We are pleased to again increase our dividend payout, which is indicative not only of our consistent performance and financial strength but also of our commitment to returning value to shareholders.”
The new quarterly dividend represents a 207 percent increase from the 7.5 cents per share the company was paying in 2007 and marks the ninth consecutive year in which Unum has raised its dividend.
Unum has also repurchased approximately $3.7 billion of its stock, reducing its outstanding share count by 37 percent, since the fourth quarter of 2007..