May 2, 2023 at 9:00 p.m.
by Staff report
Chattanooga-based insurer Unum on Tuesday reported higher after-tax adjusted operating income in the first quarter of 2023 over the same period in 2022 on sales and premium growth, and the company boosted its full-year outlook.
The company that offers voluntary benefits at the workplace such as disability, life, dental and vision insurance posted after-tax adjusted operating income of $372.6 million, or $1.87 per diluted common share, in the first quarter of 2023 compared to $271.4 million, or $1.33 per diluted common share, a year ago.
That beat analysts’ expectations of $1.66 per share on Yahoo Finance.
Richard P. McKenney, Unum’s president and CEO, said in a statement after the close of the markets that momentum from 2022 carried into the delivery of strong results in the first quarter, with increases in sales and premium across its core operations and performance of its group disability business.
“Our investments in digital capabilities continue to enable greater reach across employers and drive sustainable growth,” he said. “Our business thrives in today’s environment, and given the strength of our balance sheet, we have flexibility to execute on our strategy of growth and return capital to shareholders.”
Unum’s stock closed Tuesday at $40.96 per share, down 87 cents, or 2.08%.
Unum reported net income of $358.3 million, or $1.80 per diluted common share, for the first quarter compared to net income of $240.4 million, or $1.18 per diluted common share, for the same quarter a year ago.
By segment, Unum US posted adjusted operating income of $312.5 million in the first quarter, an increase of 85.7% from $168.3 million in the first quarter of 2022. Premium income grew 4.3%, the company reported.
Within the segment, the group disability line of business reported a 132% increase in adjusted operating income to $145.7 million in the first quarter compared to $62.8 million a year ago. Premium income for the group disability line of business increased 8.7% to $745 million, according to Unum.
The Unum International segment reported adjusted operating income of $38.4 million in the quarter, up 48.3% from $25.9 million in the first quarter of 2022. Premium income rose slightly to $188.6 million in the quarter compared to $187.8 million a year ago.
The Colonial Life segment reported adjusted operating income of $93.9 million in the first quarter, an 8.7% decrease compared to $102.9 million in the first quarter of 2022. Premium income dropped slightly to $429.5 million in the first quarter of 2023, compared to $430.7 million in the first quarter of 2022, due to lower persistency, partially offset by higher prior-period sales, the company reported.
The full-year 2023 outlook was increased following first-quarter results and underlying trends, according to the company that employs about 2,800 people in Chattanooga.
— Compiled by Mike Pare
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May 2, 2023 at 9:00 p.m.