Unum US delivered strong results for the third quarter, with positive sales momentum (up 9 percent thus far this year) and strong persistency across our major product lines. Operating income increased more than 3 percent to $216.3 million, one of our highest levels ever.
“We are in a very strong position and should be proud of the results we delivered this quarter,” said Mike Simonds, senior vice president and chief operating officer. “Our unwavering discipline and focus have helped us deliver these good short term results and make progress on our longer term priorities.”
Among the highlights:
“We have good momentum as we head into the home stretch,” Chris said. “We have a good mix of new sales and new business on old cases (NBOC) in pipeline and this positions us well for a strong finish.”
The entire industry continues to struggle against strong economic headwinds, including the impact of historically low interest rates. Unum is analyzing these economic factors carefully and taking the necessary steps to mitigate the impact to our business.
“The interest rate environment is certainly impacting us, from returns we see on investments to pricing plans we’re developing for the future,” Mike said. “But we should be proud of our results and our outlook. We are clearly energized and in a good position to carry this momentum through the end of the year.”
“We are in a very strong position and should be proud of the results we delivered this quarter,” said Mike Simonds, senior vice president and chief operating officer. “Our unwavering discipline and focus have helped us deliver these good short term results and make progress on our longer term priorities.”
Among the highlights:
- Unum US sales ended the third quarter at nearly 98 percent of plan and 4 percent over the third quarter of last year.
- Group disability sales were at 103 percent of plan, core group at 104 percent of plan and IDI business continued a very strong year at 111 percent of plan. VB sales were up 2 percent, but short of plan.
- Group premium persistency of 90.5 percent remains well above the annual plan of 87.9 percent.
- As in the second quarter, expenses were favorable, but remain a critical area of focus as we continually look for efficiencies and opportunities to improve.
- Service metrics across customer touch points continued to be strong and remain above target.
- The August implementation of the second wave of the Growth Operations strategy went well. More than 40,000 clients are now doing business with us under this new sales and client management model.
“We have good momentum as we head into the home stretch,” Chris said. “We have a good mix of new sales and new business on old cases (NBOC) in pipeline and this positions us well for a strong finish.”
The entire industry continues to struggle against strong economic headwinds, including the impact of historically low interest rates. Unum is analyzing these economic factors carefully and taking the necessary steps to mitigate the impact to our business.
“The interest rate environment is certainly impacting us, from returns we see on investments to pricing plans we’re developing for the future,” Mike said. “But we should be proud of our results and our outlook. We are clearly energized and in a good position to carry this momentum through the end of the year.”
