Chattanooga-based disability insurer Unum Group on reported Tuesday that fourth quarter after-tax adjusted operating income was up from a year ago on positive trends in its core business.
“These trends continue to produce solid margins and strong cash flow,” said Richard P. McKenney, Unum’s president and chief executive officer, in a statement.
After-tax adjusted operating income was $281.7 million in the latest quarter, or $1.30 per diluted common share, up from $253.6 million, or $1.13 per diluted common share, a year ago, the company reported after the close of the markets.
The average estimate by analysts was that Unum would earn $1.31 per share in the quarter.
McKenney said the company’s operating performance “reflects the disciplined execution of our plans and the strategic positioning we enjoy in our markets.”
Net income of $249.1 million, or $1.15 per diluted common share, in the quarter fell from net income of $266.9 million, or $1.19 per diluted common share, for the fourth quarter of 2017, according to Unum.
Included in net income for the fourth quarter of 2018 is a net after-tax realized investment loss of $32.6 million, or 15 cents per diluted common share, on the company’s investment portfolio.
Unum’s stock closed Tuesday on the New York Stock Exchange at $34.69 per share, down 6 cents, or 0.17 percent.
Concerning the company’s outlook, Unum expects after-tax adjusted operating income growth per share for full-year 2019 to be within the range of 4 percent to 7 percent.
The company’s Unum U.S. segment reported adjusted operating income of $248.7 million in the fourth quarter of 2018, a drop of 5.9 percent compared to a year ago.
Unum’s group life and accidental death and dismemberment line of business posted adjusted operating income of $64.3 million in the fourth quarter, an increase of 12.8 percent compared to $57 million a year ago, according to the company.
The supplemental and voluntary line of business reported a drop of 13.9 percent in adjusted operating income to $103.7 million in the fourth quarter of 2018.
In connection with Unum’s acquisition of Pramerica Zycie TUiR S.A., referred to as Unum Poland, in the fourth quarter of 2018, the company has changed the name of its Unum UK segment to Unum International.
The International segment reported adjusted operating income of $30.4 million in the fourth quarter, an increase of 2.4 percent from a year ago.
Colonial Life posted an 8 percent increase in adjusted operating income to $85.4 million in the fourth quarter. That’s compared to adjusted operating income of $79.1 million in the same quarter of 2017.