Unum Group reported better than expected profits in the second quarter thanks to “exceptional results within our group disability business and solid margins on a growing premium base,” Unum President Richard P. McKenney said in a statement Tuesday.
The Chattanooga-based insurer said its after-tax adjusted operating income was $2.06 per share, surpassing the $1.86 average analyst estimate and up from the $1.92 per share earned in the same period a year before.
Unum’s revenue grew to $3.11 billion, also topping analysis forecasts and year-ago levels.
In its quarterly earnings report issued Tuesday, Unum also reiterated its guidance for the full year, calling for after-tax adjusted operating income per share to increase 20% to 25% over last year’s levels.
“We saw excellent enterprisewide performance continue this quarter,” McKenney said in a statement Tuesday. “The macroeconomic environment remains favorable for our business, and our strong sales performance reflects employers’ growing recognition of the differentiation of our offerings.
“We are well-positioned for growth at the higher end of our expected earnings range and continue to operate from a robust capital position, providing the flexibility to execute our growth strategy and return capital to shareholders,” he said.
Unum announced its results after the stock market closed Tuesday. Ahead of the announcement, Unum shares edged up 2 cents a share to close at $48.63 per share. Unum’s stock is up nearly 60% in the past year.
Unum US reported adjusted operating income of $343.1 million in the second quarter of 2023, an increase of 17.5% from the same period a year ago. Premium income increased 4.5% to more than $1.6 billion in the second quarter of 2023. Net investment income decreased 5.8% to $158 million in the second quarter of 2023.
The group life and accidental death and dismemberment line of business reported a 20.2% decrease in adjusted operating income to $51.6 million in the second quarter of 2023. Premium income for this line of business was $461.8 million in the second quarter of 2023, which was generally consistent to the $463.4 million in the second quarter of 2022.
The supplemental and voluntary line of business reported an increase of 8.2% in adjusted operating income to $131.7 million in the second quarter of 2023. Premium income for the supplemental and voluntary line of business increased 1.5% to $407.3 million in the second quarter of 2023
The Unum International segment reported adjusted operating income of $43.5 million in the second quarter of 2023, an increase of 54.8% percent, and premium income increased to $207.9 million in the second quarter of 2023.
Colonial Life reported adjusted operating income of $115.5 million in the second quarter of 2023, a 19.6% increase.
— Compiled by Dave Flessner