Unum profits up, but long-term care reserves may have to be adjusted
"During the quarter, we accelerated our reserve studies for our long-term care block of business," Unum CEO
Unum warned three months ago the company may need to boost reserves to cover potential losses in the company's long term care policies written in the past. In response to the uncertainty about such reserve changes, the company's stock fell in early May to a 2-year low and has yet to rebound due to investor concerns about the impact of long-term care costs on the company's earnings.
Unum said its adjusted earnings in the second quarter rose to
The quarterly results beat analysts forecasts by
Unum said it expects after-tax adjusted operating income per share to grow in all of 2018 by 17 to 23 percent, excluding any impact from an increase of its long-term care reserves.
The insurer said in its earnings announcement Monday that the company "accelerated the work on its long-term care annual reserve analysis, which is now anticipated to be completed in the third quarter of 2018.
Unum said the cost is not likely to exceed
Unum said it currently intends to resume share repurchases of approximately
___
(c)2018 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.
Court rulings let Honeywell dump retiree health coverage
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News