Unum Group on Tuesday continued its earnings surge as the Chattanooga-based insurer posted a profit for its 13th consecutive quarter.
Fourth-quarter earnings rose over a year ago on better results in its core insurance businesses, Unum said after the stock market’s close.
“The company had another solid quarter and we closed the year well positioned for the year ahead,” said Thomas R. Watjen, Unum’s chief executive officer.
Unum posted operating earnings of $218.3 million, or 66 cents per share, in the quarter. That’s up from $209.4 million, or 63 cents per share, a year ago.
Fourth-quarter earnings beat the consensus analyst estimate by 2 cents a share. It’s the 15th straight quarter in which it has met or exceeded Wall Street estimates, according to the company.
Also, the insurer that employs almost 3,000 people in Chattanooga reported fourth-quarter net income of $199.4 million, or 60 cents a share, compared to $41.8 million, or 13 cents a share a year ago.
Quarterly results include after-tax investment losses of $18.9 million, or 6 cents a share, versus losses of $167.6 million, or 50 cents a share, in 2008.
For all of 2009, Unum earned $2.57 a share, up from $2.51 in 2008.
Analyst Bruce Cox of Fitch Ratings said he doesn’t believe the company’s earnings will face new obstacles in the economy with which it hasn’t already grappled.
He said steps Unum took several years ago when it was under fire from regulators and others is now helping the business.
“They’ve tightened down the hatches on the ship,” Mr. Cox said. “The timing was good.”
Unum maintained its 2010 outlook and anticipates earnings growth in the 4 percent to 6 percent range.
Unum’s shares rose 57 cents Tuesday to close at $20.67, up 2.84 percent.
Mr. Watjen said the profitability of the company’s core business segments have held up, benefiting from the insurer’s disciplined pricing, underwriting and expense management.
He said the soft economy continues to hurt premium growth, but he is encouraged by the insurer’s ability to attract customers while retaining existing ones.