Unum reports good third quarter earnings

The Unum US business delivered a solid third quarter for 2014, though the low interest-rate environment remains challenging.

Sales for Unum US were $138 million, up 13 percent over the third quarter of last year, and customer retention remained strong. Operating earnings of $214.3 million fell slightly below expectations and last year’s performance. The 2.5 percent dip from third quarter 2013 is due largely to lower investment income.

Over the last several years, 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.

Unum recently introduced two new products to the market — Select Disability group voluntary plans — which offer employers flexible plan designs and their employees fewer options to sort through. The simplicity of the products, along with the educational materials and enrollment process that support them, make offering and getting coverage easier all around.

In the midst of the busy fall enrollment season, the company’s enrollment solutions are providing our partners flexibility when working with our customers. With technology connections to nearly 50 third-party enrollment and benefit administration systems, Unum can serve up broad solutions unparalleled in the industry, providing options for virtually every enrollment scenario.

Results for Unum Group

Unum Group’s third quarter results reflect a continuation of a number of the positive trends that began to emerge last year, including strong sales momentum, accelerating premium growth and favorable risk results across much of the company. Operating income was $221.1 million, or 87 cents.

In addition to results from Unum US, highlights for the quarter included:

Unum UK results were largely consistent with expectations. Sales were strong at $21.4 million, a 23.7 percent increase from third quarter last year. Operating income was $33.5 million, an increase of 7 percent over the same time period.
Colonial Life sales in all market segments and product lines showed solid growth through the third quarter. Operating income rose 3.2 percent to $71.2 million over third quarter 2013 and total sales were up 12.7 percent to $85.8 million over third quarter 2013.
Operating income for the Closed Block, which includes business lines the company no longer sells but still services, rose slightly from $25.7 in third quarter 2013 to $26.2 million and was consistent with company expectations.
The company continues to benefit from a strong portfolio credit quality and capital position. During the quarter, it repurchased 2.9 million shares of stock at a cost of approximately $100 million.

How would you rate this story?

Not very helpful						Very helpful

Highlights of the quarter ›

Unum US sales, up 13 percent over 3Q13, were $138 million. Operating earnings of $214.3 million were slightly below expectations.
Unum UK sales were strong at $21.4 million, a 23.7 percent increase from 3Q13. Operating income was $33.5 million, an increase of 7 percent over the same time period.
Colonial Life sales in all market segments and product lines showed solid growth. Operating income rose 3.2 percent to $71.2 million over 3Q13 and total sales were up 12.7 percent to $85.8 million over 3Q13.
Operating income for the Closed Block rose slightly from $25.7 in 3Q13 to $26.2 million and was consistent with company expectations.
During the quarter, the company repurchased 2.9 million shares of stock at a cost of approximately $100 million.