Amid an overall market decline, Unum's stock rose Friday to its highest level in more than three years after reporting better than expected first-quarter results.
Shares of Unum jumped Friday by nearly 13.8% to close at $36.31 a share in trading on the New York Stock Exchange even as the overall stock market continued its slide following Thursday's big selloff. Among the S&P500 index of the 500 largest stock-traded companies, Unum had the third-highest gain of any company on Friday.
As a major benefits providers and the world's biggest disability insurer, Unum expects to benefit this year from rising interest rates for the return on its investments, from lower Covid-19 infections and deaths for its disability and life insurance claims and from higher employment and pay to sell more of its employee benefits.
"Our first quarter results were an outstanding start to the year," Unum CEO Rick McKenney told industry analysts during a conference call on Friday. "We saw dramatic shifts in the environment throughout the quarter which have been very favorable to our business."
With the rates on 10-year Treasury notes up 140 basis points since the start of the year, McKenney said the market "helped our recovery accelerate faster than we anticipated."
Unum reported first quarter after-tax operating earnings at $1.36 per share, which was up 31% over the previous year.
"We now look to an expected operating (earnings per share) growth rate for the year of 15% to 20%, up from the 4% to 7% previously expected," McKenney said.
The announcement propelled Unum's stock price to close the week up more than 50% since the start of 2022.