Unum Posts Record Net Income In 2016

Feb. 01--Insurer Unum Group on Wednesday reported record net income in 2016, helped by a strong fourth quarter.

For the year, the Chattanooga -based provider of disability insurance and other employee benefits posted net income of $931.4 million compared to $867.1 million in 2015.

Revenue rose in 2016 to $11.04 billion versus $10.73 billion in 2015, the company reported after the close of financial markets.

In the fourth quarter, Unum said higher operating income and revenues over a year ago were driven by premium growth in its core businesses.

Fourth quarter revenue came in at $2.79 billion, up 2.2 percent over the same period a year ago, the company said.

After-tax operating income was $232.4 million, or $1 per diluted common share, in the quarter compared to $230.6 million, or 95 cents per diluted common share, in the fourth quarter of 2015.

The results beat the average estimate of analysts by 2 cents per share.

Richard P. McKenney, Unum's chief executive officer and president, said the year saw the company deliver a combination of growth, disciplined execution, and return of capital to shareholders.

"We achieved record net income in 2016, ending the year with very strong fourth quarter results," he said in a statement. "We are well positioned strategically and financially to carry this momentum into 2017."

The company's Unum U.S. segment reported operating income of $240.1 million in the fourth quarter, up 12.1 percent from $214.2 million a year ago.

Premium income for the segment grew 5.9 percent, the company said. Net investment income for Unum U.S. was $206.3 million in the most recent quarter compared to $220.3 million in the fourth quarter of 2015.

But Unum UK reported a 19.2 percent drop in operating income to $29.9 million in the quarter. Premium income fell by 18.9 percent.

The company's Colonial Life segment posted a 3 percent increase in operating income to $79.9 million in the fourth quarter. Premium income in the quarter rose 6.8 percent, the company reported.

During the fourth quarter, the company reported it repurchased about 2.5 million shares for $103 million.

For 2017, the company said it expects after-tax operating income growth per share for the full year to be within the range of 3 percent to 6 percent.

Unum's stock on Wednesday closed at $45.77 on the New York Stock Exchange, up 34 cents, or 0.75 percent.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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