Unum posts strong fourth quarter earnings results

Unum reported fourth quarter earnings today which showed solid earnings per share growth and a continuation of positive trends seen throughout the year. This is the seventh consecutive year that Unum has shown EPS growth.

The company reported after-tax operating income of $225 million, or 82 cents per share, compared to $228.2 million, or 78 cents per share, in the fourth quarter of 2011.

Net income was $233.9 million, or 85 cents per share, compared to a net loss of $369 million, or $1.26 per share a year ago, due mainly to charges the company took in its Closed Block business which created a one quarter loss.

Earnings in the U.S. business segment rose 2.3%, as premium income grew 3.2%. The benefit ratio--a measure of claim payouts versus premiums--improved to 84.5% from 84.7%, due in part to fewer claims for group long-term disability

During the earnings announcement, CEO Tom Watjen highlighted the strong performance of the company’s investment portfolio and how that has helped Unum through recent economic challenges, including a continued low interest rate environment.

Results reported from the fourth quarter include:

• Operating income for Unum US increased 2 percent to $212.2 million, with premium income rising by more than 3 percent. The company continued to enjoy solid profitability and margins across most product lines this quarter.

The results continue the company’s “formula” of staying disciplined, delivering on commitments and maintaining a solid financial foundation to both support the business and return capital to shareholders. During the quarter, Unum repurchased another $100 million of stock, bringing the company to $500 million for the full year and more than $2 billion since 2007.