Unum begins year in solid financial position

First quarter earnings show a strong start to the year for Unum US. With sales of $212 million, the business finished the quarter 7 percent above first quarter of last year, driven in large part by voluntary benefit sales. Group sales finished the quarter 11 percent higher than this time last year, mainly from growth in new sales.

The notably consistent performance of Unum US has been driven by commitment to client relationships, strong customer service and a collective focus on business goals. The results have enabled investments in products, service, technology, and communication that deliver what benefits partners, clients and consumers need in today’s changing marketplace.

Results for Unum Group
Unum Group reported net income of $228.9 million, or 88 cents a share, compared $212.6 million, or 79 cents per share, in the first quarter of 2013.

"By continuing to build very strong customer relationships, our persistency has been better than expected," said Unum Group President and CEO Tom Watjen. "That, along with maintaining the sales momentum we began building last year, has allowed us to profitably grow our business."

In addition to Unum US results above, here are business segment highlights from the quarter:

Unum UK: Operating income increased 9 percent to £22 million ($36.5 million) as we continue to make good progress in the re-pricing and repositioning of our group life business. While total sales were down slightly due to the pricing actions we are taking in our group life business, group disability sales increased 5.7 percent.
Colonial Life: Our Columbia-based business generated one of its strongest quarters with operating income increasing 5.3 percent to $79.4 million. Led by strong commercial market activity, sales increased 6.5 percent with solid momentum in this business as well.
Closed Block: Our performance was again in line with our expectations, with operating income of $29.1 million.
Investment portfolio: The portfolio remains in excellent shape and we are maintaining very solid credit quality. Because of the difficult interest rate environment, we are holding on to more cash than normal and taking the necessary actions, including pricing adjustments in some of our products.
Capital position: Our position remains quite strong and continues to give us significant financial flexibility. We bought back another $100 million of our stock during the quarter and have now repurchased shares in 15 of the last 16 quarters.

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