Unum Group boosted its third quarter net income by more than 27% from a year ago with yearly growth in its international, U.S. and Colonial Life businesses.
The results beat analysts’ forecasts for earnings and the Chattanooga-based insurance giant reiterated Tuesday its full-year outlook for at least a 40% gain in yearly income this year.
“Our business is performing well as we look toward the last quarter of the year,” Unum CEO Rick McKenney said in an earnings announcement Tuesday. “Our excellent third quarter results reflect the earnings power of our business lines and our continued favorable benefits experience, positioning us well for growth heading into the next year.”
Unum reported profits in the three months ended Sept. 30 of $410.7 million, or $2.04 per share, compared to income a year ago of $328.6 million, or $1.60 per share.
The profits were ahead of Wall Street projections. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $1.40 per share.
Company revenues in the third quarter, however, were down slightly from a year ago to $2.96 billion and were short of what analysts had predicted for the period.
During the third quarter, Unum repurchased 1.2 million shares of stock for about $426 million in open market transactions. So far this year, Unum has repurchased 4.2 million shares of its outstanding stock.
McKenney said he believes Unum’s improved performance will continue. Although higher interest rates and a tight labor market are challenging many businesses, the higher rates are improving investment yields on Unum’s portfolio and the labor market is keeping demand for benefits sold by Unum up as employers compete for workers.
Unum, which is the world’s biggest disability insurer, also is doing better as the Covid-19 pandemic eases.
“The company expects positive operating trends in our core business during 2022, with solid premium growth and improving claim experience as impacts from Covid-19 lessen,” McKenney said. “The company continues to anticipate an increase in after-tax adjusted operating income per share of 40% to 45 % relative to the full year of 2021.”
— Compiled by Dave Flessner