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Investing.com -- Unum Group (NYSE:UNM) shares fell 2.3% in after-hours trading Monday after the insurance provider reported third-quarter adjusted earnings that missed analyst expectations, despite revenue exceeding forecasts.
The company posted adjusted operating income of $357.1 million, or $2.09 per diluted share for the third quarter, falling short of the $2.15 per share analysts had expected. Revenue came in at $3.38 billion, surpassing the consensus estimate of $3.33 billion and growing 2.9% on a constant currency basis from the year-ago period.
Unum’s core operations remained strong with a 21.4% adjusted operating return on equity. However, the company completed its annual GAAP reserve assumption updates during the quarter, resulting in an after-tax net reserve increase of $377.8 million, primarily reflecting strategic actions and experience updates in its long-term care business.
"We delivered solid top and bottom-line performance across our core businesses in the third quarter. Our premium and sales growth reflect sustained demand and customer retention for our market leading offerings," said Richard P. McKenney, president and chief executive officer.
The company’s Unum US segment, its largest business unit, saw adjusted operating income decrease 7.8% to $334.9 million compared to the same period last year. Meanwhile, the Colonial Life segment reported a 2.8% increase in adjusted operating income to $116.6 million.
Unum maintained a strong balance sheet with holding company liquidity of $2.0 billion and a weighted average risk-based capital ratio of approximately 455%, well above target levels. The company returned approximately $980 million to shareholders year-to-date, including $250 million in share repurchases and $78.3 million in dividends during the quarter.
Book value per common share grew 8.8% YoY to $64.56, while book value excluding accumulated other comprehensive income increased 4.4% to $77.39.
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