Chattanooga-based employee benefits provider Unum Group on Tuesday reported that fourth quarter earnings beat market estimates on healthy profit margins.
Fourth quarter after-tax adjusted operating earnings per share was $1.41, an increase of 8.5% from the year-ago quarter. The Zacks consensus estimate for earnings for Unum was $1.38 per share.
For the full year, Unum's after-tax adjusted operating earnings totaled $5.44 per share, a 4.6% gain.
Richard P. McKenney, Unum's president and chief executive officer, said Unum wrapped up 2019 on a positive note with solid results in the fourth quarter. Profit margins were driven by a mix of steady premium growth, stable benefits experience, and a focus on expense management, he said.
"Looking forward, we will remain focused on accelerating growth to meet the growing need for our products in the marketplace and to position Unum for ongoing success," McKenney said.
The company expects after-tax adjusted operating income growth per share for full-year 2020 to be within the range of 4% to 7%.
For the final quarter of 2019, Unum reported net income of $296.2 million, compared to $249.1 million a year ago.
The company reported that its Unum US segment posted adjusted operating income of $263.1 million in the fourth quarter, up 5.8% from $248.7 million in the fourth quarter of 2018. Premium income for the segment increased 5.1%.
Net investment income for the segment increased 0.7% to $189 million in the quarter, the company reported.
Within the segment, the group disability line of business reported a 2.9% increase in adjusted operating income to $83 million in the quarter.
Staff photo by Erin O. Smith / Rick McKenney, chief executive officer at Unum, poses for a photo at Unum Tuesday Oct. 1, 2019 in Chattanooga, Tennessee.The Colonial Life segment reported a 2.7% increase in adjusted operating income to $87.7 million in the fourth quarter. Premium income rose 3.6% to $424.9 million in the fourth quarter, driven primarily by prior period sales growth, which includes the continued expansion of dental and vision products partially offset by a lower level of persistency.
Sales totaled $209.7 million in the fourth quarter of 2019, compared to $204.4 million in the year-ago quarter, according to Unum.
The Unum International segment reported adjusted operating income of $23.9 million in the fourth quarter, down 21.4% from $30.4 million a year ago.
The Closed Block segment reported adjusted operating income of $46.1 million in the quarter compared to $34.8 million a year ago.
Unum reported its earnings after the market closed Tuesday. Ahead of the earnings report, Unum shares rose 2.29%, or 62 cent per share, to close at $27.65 in trading on the New York Stock Exchange.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.