The COVID-19 pandemic continued to take its toll on Unum Group earnings in the first quarter of 2021, but the Chattanooga-based disability insurer did outperform analysts' expectations in the first three months of 2021.
In its first quarter results released Wednesday Unum reported after-tax adjusted operating earnings of $212 million, or $1.04 per share. In the same period in 2020, Unum's after-tax adjusted operating earnings totaled $274.1 million, or $1.35 per share.
Despite the 23% drop in operating earnings from a year ago, Unum's results were 6 cents a share above the consensus analyst expectations for the period.
"Our first-quarter results reflect the dynamics of the world around us with good growth results, pressured by high, yet improving, levels of mortality," Unum CEO Richard P. McKenney said in the earnings report released after the market closed Wednesday. "With vaccines rolling out and a better economy, the current trends show continued improvement. Looking forward, our market leadership and financial underpinnings position us well to drive growth as the recovery builds in the second half of the year."
The pandemic has hurt Unum sales with fewer workers employed and a bigger share claiming disabilities. The historically low-interest-rate environment also has limited Unum's investment income.
McKenney reaffirmed that Unum "expects a modest decline in after-tax adjusted operating income per share for full-year 2021 compared to full-year 2020."
Despite an increase in international business in the first quarter, Unum US reported adjusted operating income of $115.7 million in the first quarter of 2021, a decrease of 55.8% from a year ago.
Unum shares are up 31.3% so far in 2021 and the company's stock price has more than doubled in the past year.
- Compiled by Dave Flessner