Unum Earnings Rise, Beating Analysts’ Expectations
Oct. 26--Unum Group boosted its third quarter earnings by nearly 22 percent over a year ago and beat analysts' expectations for the three-month period.
The Chattanooga-based insurance giant said Wednesday it earned $236 million, or $1.01 per share, on revenues of $2.76 billion during the third quarter. The results were up from the $203.8 million, or 83 cents per share, earned on revenues of $2.66 billion a year earlier.
Unum's after tax profits were 99 cents per share, 6 cents per share better than the average forecast of industry analysts, who predicted Unum would earn 95 cents per share in the quarter, according to Yahoo Finance news.
"Our third quarter results were very strong, driven in large part by solid premium growth in our core business operations," Unum CEO Richard P. McKenney said in an earnings announcement after the market closed. "We continued to grow the top line and deliver value to our customers, as evidenced by our steady customer retention trends, while further cementing our position as a leader in the employee benefits marketplace. We also continued to generate excess capital, allowing us to invest in our business, such as our acquisition in the dental and vision market, while also directly returning value to shareholders."
In August, Unum completed its purchase of H&J Capital LLC, the parent company of Starmount Life Insurance Co. and AlwaysCare Benefits, leading dental and vision benefits company. Unum also repurchased $100 million of its shares during the quarter.
The Unum US and Colonial Life businesses delivered record operating income during the past three months and all three major Unum business lines reported an increase in premiums over a year ago.
Unum US, the largest business subsidiary, reported operating income of $231 million in the third quarter of 2016, an increase of 5.6 percent from $218.7 million in the third quarter of 2015. Premium income for the segment increased 5.9 percent to more than $1.3 billion.
The gains in earnings came despite lower investment returns on Unum's portfolio, primarily due to lower interest rates and investment yields.
Unum said it expects after-tax operating income for all of 2017 to be up 3 to 6 percent over last year.
Contact Dave Flessner at [email protected] or at 423-757-6340.
------
Updated at 11:15 p.m. with additional information.
___
(c)2016 the Chattanooga Times/Free Press (Chattanooga, Tenn.)
Visit the Chattanooga Times/Free Press (Chattanooga, Tenn.) at www.timesfreepress.com
Distributed by Tribune Content Agency, LLC.
Health-insurance premiums rise in Washington, but not as much as elsewhere
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News