Unum Group on Tuesday reported better earnings for the fourth quarter and the year on solid operating performance and favorable trends in its insurance business.
For the quarter, the company posted after-tax adjusted operating income of $286.7 million, or $1.43 per share, compared to $182 million, or 89 cents per share, in 2021, results show. Yahoo Finance estimated Unum would earn $1.47 in the quarter.
For the year, after-tax adjusted operating income was $1.25 billion, or $6.21 per share, versus $890 million, or $4.36 per share, in 2021, according to Unum.
Richard P. McKenney, Unum's president and chief executive officer, said the company's fourth-quarter results were driven by higher premiums across its core segments and continued favorable trends in its group disability insurance line.
"We enter 2023 with strong sales momentum and record levels of capital," he said in a statement after the close of the market. "This positions us well to execute on our strategy of growth while returning capital to our shareholders through dividends and share repurchase."
Unum's stock closed Tuesday on the New York Stock Exchange at $42.03 a share, up 93 cents, or 2.26%.
The company's Unum U.S. segment reported adjusted operating income of $228.7 million in the fourth quarter, an increase of 181% from $81.4 million in the same quarter of 2021.
Premium income for the segment grew 3.4% in the fourth quarter, the company reported.
Within the segment, the group disability line of business posted a 236.1% increase in adjusted operating income to $114.6 million in the fourth quarter. Premium income for the group disability line of business rose 7.3% to $732.9 million in the quarter, according to Unum.
The company's Colonial Life segment reported a 16.3% increase in adjusted operating income to $93 million in the fourth quarter compared to $80 million in the same quarter of 2021. Premium income dropped less than 1% to $420.4 million in the fourth quarter, the company reported.
Sales climbed 2.3% to $170 million in the fourth quarter versus $166.2 million in the same quarter of 2021, results show.
Unum's International segment reported adjusted operating income of $45 million in the fourth quarter of 2022, up 66.1% from $27.1 million in the same quarter of 2021, according to the company.
Premium income increased less than 1% to $178.3 million in the fourth quarter of 2022, compared to $177.5 million in the fourth quarter of 2021, Unum reported.
— Compiled by Mike Pare