Unum headquarters in downtown Chattanooga.Chattanooga-based Unum Group reported after-tax operating income of $221.5 million for the third quarter, or 74 cents per share, missing Wall Street estimates by a penny.
A 26 percent drop in revenue at Unum’s UK division, a decrease of $12.3 million from the third quarter of 2010, left the insurer with results that were “slightly below expectations,” said Tom Watjen, president and CEO of Unum.
Investment losses dragged down net income $15.2 million to $205.6 million, posing a challenge that has been magnified by high unemployment and low interest rates, he said.
“While there is no cause for alarm, it’s something we need to address – through profitable growth, through continued emphasis on expense management and generally just working smarter,” Watjen said. “And as I’ve said before, I don’t see these headwinds lessening in the foreseeable future.”
On the whole, Unum grew third-quarter 2010 operating income by $1.6 million, and the company’s share buyback program boosted per-share earnings by six cents, the company reported.