|
UNUMPROVIDENT CEO WATJEN SAYS COMPANY POISED TO CAPITALIZE ON
EMERGING TRENDS IN EMPLOYEE BENEFITS
PORTLAND, Maine (May 17, 2006) — In his comments to
stockholders at the company's annual meeting today, Thomas R. Watjen,
UnumProvident Corporation (UNM) president and chief executive officer, outlined
the progress the company has made over the past two years and said that, while
challenges lie ahead, the future holds great promise.
"Although clearly more work remains, we can't lose sight of how far we've come.
We have maintained leadership positions in our key markets and continued to
invest in product and service innovation to assure we protect and build from
our strong base. We have also successfully positioned many areas of our company
to deliver customer value and solid results. And the attitude and commitment of
our people have never been better, which speaks volumes for our future."
Additionally, Watjen talked about a number of opportunities for UnumProvident
that are being driven largely by changing trends in the employee benefits
arena.
"In the U.S., employers face significant challenges with their benefits
programs," he said. "The rising cost of medical insurance, growing concerns
around pension plans, an aging workforce and an increasingly competitive market
are leading employers to reevaluate many aspects of their benefit programs.
While some view this change as a threat, we see it as a significant
opportunity. UnumProvident is well-positioned to help employers and their
employees during this period of unprecedented change."
Ultimately, said Watjen, the changes taking place in the benefits industry will
drive industry consolidation within the U.S. "The need on the part of employers
for a broader set of product and service choices will require a greater
investment in the business than I think many are prepared to make, which, when
combined with other challenges in this specialized business, could force
consolidation. UnumProvident has the size and scale to compete and is
well-positioned to maintain and even expand on its leadership position in an
environment of accelerated consolidation."
Watjen added that the company is also poised to capitalize on opportunities in
the United Kingdom, where UnumProvident is the largest provider of group
disability insurance. "The U.K. market is still in many respects
underdeveloped, with less than 10 percent of employers offering group
disability coverage. As the market leader, UnumProvident is in a unique
position to help educate buyers to the need for this coverage."
Also at today's meeting, UnumProvident stockholders elected four directors to
terms expiring in 2009. They were: Pamela Godwin, president of Change Partners,
Inc.; Thomas Kinser, former president and chief executive officer of BlueCross
BlueShield of Tennessee; A.S. (Pat) MacMillan, Jr., chief executive officer of
Triaxia Partners; and Edward J. Muhl, retired national leader of
PricewaterhouseCoopers' Insurance Regulatory Practice. All are currently
serving on the board.
# # #
|