Chattanooga-based disability insurer Unum Group on Wednesday reported higher third quarter operating income over a year ago as the company continued a trend of solid profits in 2017.
After-tax operating income, which excludes net after-tax realized investment gains and losses on the Unum’s investment portfolio, was $246.1 million, or $1.09 per diluted common share in the latest quarter, compared to $228.7 million, or 98 cents per diluted common share a year ago.
Earnings in the quarter were 5 cents per share above the average estimate of analysts.
Unum reported net income of $252.3 million, or $1.12 per diluted common share, for the third quarter compared to $236 million, or $1.01 per diluted common share a year ago.
Unum Chief Executive Richard P. McKenney said the company’s “consistent performance has been driven by solid top-line growth, overall stable benefits experience, and good expense management.”
“Our disciplined approach is yielding steady growth, strong financial performance, and value creation for our shareholders,” he said in a statement after the close of the markets.
Unum stock closed Wednesday on the New York Stock Exchange at $52.21 per share, down 61 cents, or 1.15 percent.
The company’s expectation for after-tax operating income growth per share for full-year 2017 is at-to slightly above the upper end of its range of 5-8 percent established in the second quarter.
Unum US reported operating income of $258.4 million in the third quarter, an increase of 11.9 percent from $231 million a year ago as premium income grew 3.5 percent.
Net investment income for the segment declined 3 percent to $201 million in the third quarter from a year ago.
Within the Unum US operating segment, the group disability line of business reported a 5.4 percent increase in operating income to $90 million in the third quarter.
The company’s Unum UK segment posted operating income of $26.5 million in the third quarter, down 6 percent from a year ago. Premium income rose 3.3 percent to $131.5 million in the third quarter.
Unum’s Colonial Life division reported a 3.4 percent increase in operating income to $81.7 million in the third quarter. Premium income for the quarter jumped 6.9 percent to $378.7 million, the company reported.
The Closed Block segment reported operating income of $26.6 million in the third quarter, down from $28.6 million a year ago.
The Corporate segment reported an operating loss of $36.2 million for the quarter compared to an operating loss of $45.7 million a year ago, primarily driven by lower operating expenses and interest expense.