Unum Group's third quarter results, hit by higher mortality rates and elevated joblessness during the coronavirus pandemic, fell from a year ago, the insurer reported Tuesday.
After-tax adjusted operating income in the quarter was $245.9 million, or $1.21 per diluted common share, compared to $282.7 million, or $1.36 per diluted common share, in the same period a year ago.
Earnings in the quarter were 11 cents below the average analyst estimate at Yahoo Finance of $1.32 per share.
"Our team continues to deliver solid operational performance, adapting to best serve our customers in this extraordinary time," said Richard P. McKenney, the Chattanooga-based company's president and chief executive officer, in a statement. "This environment reinforces the fundamental purpose for what we do in protecting employees and their families in time of need. We continue to be well-positioned to benefit from better business conditions as the economy improves and will continue to effectively manage through today's challenges."
Net income in the quarter was $231.1 million, or $1.13 per diluted common share, versus net income of $242 million, or $1.16 per diluted common share, a year ago, the company reported after the close of the markets.
Included in net income for the most recent quarter are after-tax costs related to an organizational design update of $18.6 million and a net after-tax realized investment gain on the company's investment portfolio of $3.8 million, the company said.
The Unum US segment posted adjusted operating income of $188.2 million in the third quarter, down 28% from $261.4 million a year ago, according to Unum.
Within the segment, the group disability line of business reported a 12% percent decrease in adjusted operating income to $73 million in the quarter.
The segment's group life and accidental death and dismemberment line of business reported adjusted operating income of $13.9 million in the third quarter, off 79.7% from a year ago.
The Unum International segment reported adjusted operating income of $21.4 million in the quarter, down 11.6% from $24.2 million a year ago.
Colonial Life reported a 5.7% increase in adjusted operating income to $92.2 million in the third quarter. Net investment income grew 18.4% to $43.7 million in the quarter, the company reported.
Unum's Closed Block segment reported adjusted operating income of $70.8 million in the third quarter, an increase of 163.2%.
As announced previously, due to the uncertain economic environment caused by the pandemic, the company has suspended financial guidance for the remainder of 2020.
Unum's stock closed Tuesday at $18.25 per share, down 99 cents, or 5.15%, in trading on the New York Stock Exchange.
- Compiled by Mike Pare