Unum Group beat Wall Street expectations for the fourth quarter of 2014, continuing a long string of earnings growth, as its outgoing CEO noted that he was pleased with the Chattanooga-based company’s performance for the year.
“The growth that we have seen this past year hasn’t come from any meaningful economic recovery, but instead is the result of adding new customers and expanding our relationships with existing customers,” Unum CEO Tom Watjen wrote in a letter to employees on Tuesday.
Unum’s increased profits come despite a tough go dealing with the trend of low interest rates. The company, which is one of the world’s leading providers of workplace financial-protection benefits, gets about one-quarter of its revenue from investment income.
“Our top-line growth was driven by a balance of strong sales results, solid persistency and continued success with our ongoing renewal and re-pricing actions,” Watjen said. “Today’s low interest rate environment, though, creates significant challenges for us and for our industry, and we are taking the steps within our core businesses to maintain the solid margins and financial flexibility we’ve worked so hard to attain.”
Despite its strong showing in profits, Unum booked a net loss of $279.1 million, or $1.11 per share, for the fourth quarter, compared to net income of $221.2 million, or 84 cents per share for the fourth quarter of 2013. That net loss was due in large part to an after-tax reserve charge of $453.8 million due to the company’s closed-block segment, which reflects policies the company no longer sells.