Unum well-positioned to capitalize on opportunities, CEO McKenney tells shareholders at annual meeting

By a News Reporter-Staff News Editor at Investment Weekly News -- At his first annual meeting as Unum's CEO, Richard P. McKenney told shareholders that he sees increasing demand for the company's products and services, and that the company is well-positioned to capitalize on these opportunities and expand its reach.

"We look to the future with optimism because the need for what we do has never been greater and we see a tremendous opportunity to continue to grow the market," said McKenney.

"We approach it from a position of strength," he added. "Last year we generated strong financial results, consistent operating performance and significant growth across our businesses. As a result, we continue to be well-positioned both financially and strategically to capitalize on the opportunities ahead."

A key competitive advantage for Unum, said McKenney, is the depth and breadth of its experience in employee benefits, as well as its track record of consistently meeting its commitments to stakeholders.

In 2015, Unum paid $6.8 billion in benefits and helped some 327,000 people return to work following a disability. Sales and premium each rose 5 percent, while operating earnings per share grew for the 10th consecutive year.

The company also increased its dividend for the seventh consecutive year and repurchased more than $425 million of its stock in 2015, bringing the amount repurchased since 2007 to $3.3 billion, or 36 percent of shares outstanding.

"I truly believe we are not only stronger today than ever before, but that we are uniquely positioned for growth and continued financial success," he added.

McKenney was named CEO at last year's annual meeting upon the retirement of Thomas Watjen, who served as CEO for 12 years and is now non-executive chairman of the board. Concluding his first full year as CEO, McKenney says he sees a tremendous opportunity to continue to grow the market by helping people plan for unforeseen circumstances rather than hope against them.

"Many workers in the U.S. and U.K. lack access to benefits that can preserve their financial stability in the face of an unexpected event. We believe we are uniquely positioned to address this pressing societal issue."

Unum made a key acquisition last year with the purchase of National Dental Plan in the U.K. Earlier this year, Unum announced plans to acquire Starmount Life Insurance Company, a leading dental and vision benefits provider, as it seeks to capitalize on the recent growth in those markets and expand its already-broad portfolio of employee benefits.

For 2016, McKenney says the company aims to further the momentum it has built over the last decade. He anticipates continued top-line growth while maintaining solid operating margins and significant financial flexibility to support the needs of its businesses.

"We are in good operating businesses with strong market positions, and we've built a solid financial foundation," he said. "By continuing to anticipate the needs of our customers, and by remaining disciplined in everything we do, we'll be well-positioned to deliver even greater value to our shareholders in the future."

Also at today's meeting, Unum shareholders voted to re-elect 13 directors for terms expiring in 2017: Theodore H. Bunting, Jr.; E. Michael Caulfield; Joseph J. Echevarria; Cynthia L. Egan; Pamela H. Godwin; Kevin T. Kabat; Timothy F. Keaney; Gloria C. Larson; Richard P. McKenney; Edward J. Muhl; Ronald P. O'Hanley; Francis J. Shammo; and Thomas R. Watjen.

A.S. (Pat) MacMillan, Jr., and William J. Ryan, lead independent director, retired from the board today after having reached mandatory retirement age. Kevin T. Kabat became the new lead independent director.

Separately today, the company's board of directors authorized an increase of 8 percent in the quarterly dividend paid on its common stock. The new rate of 20 cents per common share, or 80 cents per share on an annual basis, will be effective with the dividend expected to be paid in the third quarter of 2016. The board also authorized the repurchase of up to $750 million of the company's outstanding stock through Nov. 26, 2017, replacing the previous authorization of $750 million that was scheduled to expire later this year. ABOUT UNUM GROUP Unum Group is a leading provider of financial protection benefits in the United States and the United Kingdom. Its primary businesses are Unum US, Colonial Life and Unum UK. Unum's portfolio includes disability, life, accident and critical illness coverage, which help protect millions of working people and their families in the event of an illness or injury. The company reported revenues of $10.7 billion in 2015, and provided $6.8 billion in benefits last year.

Keywords for this news article include: Dentistry, Unum Group, Banking and Finance.

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