Unum Group on Wednesday reported that first-quarter after-tax operating income was up on higher earnings from its U.S. operations.
The Chattanooga-based disability insurer posted operating income of $236.1 million, or $1.02 per diluted common share, in the first quarter compared to $224.2 million, or 94 cents per diluted common share, a year ago.
"Our first quarter financial results were a very good start to 2017, and continued many of the positive operating trends we experienced in 2016," said Richard P. McKenney, Unum's president and chief executive officer, in a statement after the market's close. "Our record earnings levels and overall consistent performance demonstrate the single minded focus on serving our customers and the disciplined execution of our strategy."
Unum shares closed Wednesday at $46.93, down 1 cent, or off 0.02 percent, on the New York Stock Exchange.
For the year, the company said it expects after-tax operating income growth per share to be within a range of 3 percent to 6 percent.
Net income for the first quarter was $229.9 million, or $1 per diluted common share, versus $210.6 million, or 88 cents per diluted common share, for the same quarter a year ago.
The average analyst estimate was that Unum would earn $1 per share in the quarter.
The company's Unum US division reported operating income of $239.1 million in the quarter, up 10.7 percent from $215.9 million a year ago. Premium income for the segment increased 4.5 percent.
Within the Unum US, the group disability line of business reported a 26 percent increase in operating income to $88.7 million in the first quarter.
Unum's Colonial Life segment reported a 6.5 percent gain in operating income to $82.4 million in the first quarter, compared to $77.4 million a year ago.
Premium income for the first quarter increased 6.6 percent to $374.3 million, compared to $351.2 million a year ago.
Unum's United Kingdom group posted income of $26.6 million in the first quarter versus $33.6 million a year ago, down 20.8 percent.
Premium income declined by 12.9 percent to $121.3 million in the first quarter, the company said.
The company reported that its closed block segment posted operating income of $31.6 million in the first quarter compared to $33.7 million a year ago.
Unum's corporate segment reported an operating loss, including the loss from a guaranty fund assessment, of $60.4 million for the quarter versus an operating loss of $35.9 million a year ago.