Unum Group, a Chattanooga-based life and disability insurance firm, will repurchase $500 million worth of outstanding shares over the next year while increasing its quarterly dividend 12.1 percent, CEO and President Tom Watjen announced at the company’s annual shareholders’ meeting today.
“Our consistent operating performance and strong capital position have positioned us well to initiate this share repurchase program,” Mr. Watjen said at the annual meeting in Columbia, S.C. “This action, along with today’s decision by our board to authorize an increase of 12.1 percent in the quarterly dividend paid on our common stock, represents a balanced approach to deploying our excess capital in a way that creates value for our shareholders, yet also allows us to continue to invest in our businesses and capitalize on market opportunities as they arise.” The new dividend will amount to just over nine cents per common share.
The company had previously raised its quarterly dividend 10 percent with the dividend paid in the third quarter of 2009 and completed a $700 million share repurchase in 2008.