Insurer Unum Group on Tuesday posted higher profits in the third quarter over a year ago, citing positive underlying trends and a favorable environment highlighted by premium growth in its core operations.
“Our strong performance reflected excellent execution across the enterprise, with very strong top-line growth and profitability,” said Richard P. McKenney, president and CEO of the Chattanooga-based company in a statement.
Unum, which sells voluntary benefits at employers’ workplaces such as disability, life, dental and vision insurance, reported after the markets’ close an after-tax adjusted operating income of $381.7 million, or $1.94 per diluted common share, in the third quarter compared to $332.3 million, or $1.65 per diluted common share a year ago.
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The quarterly results topped the consensus estimate of $1.92 per share on Yahoo Finance for Unum, which employs about 3,000 out of its Chattanooga office and 11,000 worldwide.
Unum’s stock closed Tuesday at $48.90 per share, up 13 cents, or 0.27%, on the New York Stock Exchange.
Net income came in at $202 million, or $1.02 per diluted common share, for the third quarter versus net income of $510.3 million, or $2.53 per diluted common share a year ago, the company said. Among special items Unum reported are after-tax amortization of the cost of reinsurance, the after-tax impact of non-contemporaneous reinsurance and an after-tax net reserve increase related to an assumption update driven by long-term care.
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The company’s Unum US segment reported adjusted operating income of $357.8 million in the latest quarter, up 27.4% from the same period last year. Premium income grew 6.5%, according to Unum.
Within Unum US, the group disability line of business reported a 30.1% increase in adjusted operating income to $170.1 million in the third quarter of 2023. Premium income for the group disability line rose 8.7%, the company said.
Unum’s Colonial Life segment reported adjusted operating income of $102.9 million in the third quarter of 2023, a 12.7% decrease compared the year-ago period, according to the insurer.
Colonial Life premium income increased to $431.2 million in the third quarter, compared to $423.3 million in the third quarter a year ago, the company said.
Unum’s International segment posted adjusted operating income of $36.8 million in the third quarter of 2023, an increase of 47.8% from a year ago, the company said.
International premium income rose 21.5% to $210.6 million in the third quarter of 2023, Unum said.
McKenney said as Unum approaches the end of 2023, “our capital deployment plans are on track and will accelerate in 2024, market conditions remain favorable, and we believe we are well positioned to achieve our earnings growth objectives and maintain capital metrics well in excess of our targets.”
— Compiled by Mike Pare