Earnings Review and Free Research Report: Unum’s After-Tax Operating Income Advanced 11.2%; Revenue Added 2.2%

Research Desk Line-up: Triple-S Management Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Unum Group (NYSE: UNM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=UNM, following the Company’s disclosure of its third quarter fiscal 2017 operating results on October 25, 2017. The insurance Company topped earnings estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Accident & Health Insurance industry. Pro-TD has currently selected Triple-S Management Corporation (NYSE: GTS) for due-diligence and potential coverage as the Company announced on November 09, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Triple-S Management when we publish it.

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Earnings Reviewed

For the quarter ended September 30, 2017, Unum generated revenue of $2.82 billion compared to revenue of $2.76 billion in Q3 2016. The Company’s revenue was in-line with analysts’ expectations of $2.82 billion.

Unum Group reported net income of $252.3 million, or $1.12 per diluted common share, for Q3 2017 compared to net income of $236.0 million, or $1.01 per diluted common share, for Q3 2016.

Unum’s after-tax operating income, which excluded net after-tax realized investment gains and losses on the Company’s investment portfolio, was $246.1 million, or $1.09 per diluted common share, in the reported quarter compared to $228.7 million, or $0.98 per diluted common share, in the year-ago corresponding period. The Company’s reported numbers beat Wall Street’s estimates of $1.04 per share.

Unum’s Segment Results

During Q3 2017, the US reported operating income of $258.4 million, up 11.9% from $231.0 million in Q3 2016. Premium income for the segment grew 3.5% to $1.36 billion in the reported quarter compared to premium income of $1.32 billion in the year-ago same period. Net investment income for the segment declined 3.0% to $201.0 million in Q3 2017 compared to $207.3 million in Q3 2016.

For Q3 201, the UK reported operating income of $26.5 million, down 6% from $28.2 million in Q3 2016. The segment’s premium income grew 3.3% to $131.5 million on a y-o-y basis, while net investment income was $28.5 million in both Q3 2017 and 2016. Unum UK’s benefit ratio in the reported quarter was 74.9% versus 71.8% in the year-ago comparable period, reflecting higher claim incidence and unfavorable claim resolutions in the group long-term disability product line and the impact from inflation-linked increases in benefits.

The Company’s Colonial Life division reported a 3.4% growth in operating income to $81.7 million in Q3 2017 compared to $79.0 million in Q3 2016. The segment’s premium income jumped 6.9% to $378.7 million on a y-o-y basis for the reported quarter, driven by sales growth in recent quarters and stable persistency. Colonial Life’s net investment income totaled $36.0 million in Q3 2017 compared to $36.1 million in Q3 2016, primarily driven by a decline in portfolio yield and lower miscellaneous income, partially offset by an increase in the level of invested assets. The segment’s benefit ratio in the reported quarter was 51.8% compared to 51.6% in the year-earlier quarter, reflecting less favorable benefits experience in the cancer and critical illness lines of business.

During Q3 2017, the Closed Block segment reported operating income of $26.6 million compared to $28.6 million in Q3 2016. Premium income for this segment declined 3.6 % on a y-o-y basis, primarily due to expected policy terminations and maturities for the individual disability line of business. The segment’s net investment income edged up 0.9% to $337.2 million in Q3 2017 compared to $334.1 million in Q3 2016, due to an increase in the level of invested assets. The Closed Block segment’s interest adjusted loss ratio for the individual disability line of business increased to 82.4% in Q3 2017 compared to 81.5% in Q3 2016, due to unfavorable mortality experience. The segment’s interest adjusted loss ratio for the long-term care line of business came in at 93.3% in the reported quarter compared to 93.8% in the year-ago corresponding period, due to the impact of a large group case moving to an individual policy ported status in 2016.

Financial Position

During Q3 2017, Unum repurchased approximately 2.0 million shares at a cost of approximately $100 million. At September 30, 2017, the weighted average risk-based capital ratio for the Company’s traditional US insurance companies was approximately 410% and cash and marketable securities in the holding companies equaled $771 million.

Unum’s book value per common share as of September 30, 2017 was $42.11 compared to $40.33 at September 30, 2016.

Outlook

For FY17, Unum is expecting after-tax operating income growth per share to be slightly above the upper-end of its range of 5% to 8% established in Q2 2017.

Stock Performance

Unum Group’s share price finished yesterday’s trading session at $52.81, marginally declining 0.02%. A total volume of 1.50 million shares have exchanged hands, which was higher than the 3-month average volume of 1.08 million shares. The Company’s stock price soared 6.69% in the last three months, 17.59% in the past six months, and 27.47% in the previous twelve months. Additionally, the stock rallied 20.21% since the start of the year. Shares of the Company have a PE ratio of 12.41 and have a dividend yield of 1.74%. The stock currently has a market cap of $11.87 billion.

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