COURTESY / UNUM GROUP
Richard McKenney
Updated: May 7, 2021
Unum reports 5% earnings dip, reflecting 'continued elevated mortality'
Courtesy / Unum Group
Unum Group, which employs 2,400 people in the Portland area, reported a 5% earning dip during the first quarter of the year.
By Staff
Unum Group (NYSE: UNM), the disability insurer and group benefits provider with a large presence in Maine, reported a 5% earnings dip for for the first quarter of 2021, compared with Q1 2020.
The Chattanooga, Tenn.-based company reported net income of $153 million, or 75 cents per diluted common share for the quarter, compared to net income of $161 million, or 79 cents, in the comparable three months a year ago.
Results reflect “continued elevated mortality” related to COVID-19 in the U.S., although that trend improved through the quarter, the company said in a news release. Unum said there were also encouraging trends in premium growth, persistency and macroeconomic conditions.
The insurer said it maintains a strong balance sheet and liquidity, with cash totaling $1.7 billion.
"Our first quarter results reflect the dynamics of the world around us with good growth results, pressured by high, yet improving, levels of mortality," said Richard McKenney, president and CEO. "With vaccines rolling out and a better economy, the current trends show continued improvement. Looking forward, our market leadership and financial underpinnings position us well to drive growth as the recovery builds in the second half of the year."
The company measures performance by segment.
The Unum U.S. segment reported adjusted operating income of $115.7 million in the first quarter of 2021, a decrease of 55.8% from $261.8 million in the first quarter of 2020.
The Unum International segment reported adjusted operating income of $26.4 million in the first quarter of 2021, an increase of 36.1% from $19.4 million in the first quarter of 2020.
The Colonial life segment reported a 9.6% decrease in adjusted operating income to $73.3 million in the first quarter of 2021, compared to $81.1 million in the first quarter of 2020.
The closed block segment reported adjusted operating income of $97 million in the first quarter of 2021, which excludes the impacts from the second phase of the closed block individual disability reinsurance transaction of $139.3 million and the amortization of cost of reinsurance related to the closed block individual disability reinsurance transaction of $20 million, compared to $29.7 million in the first quarter of 2020.
The corporate segment reported an adjusted operating loss of $38.9 million in the first quarter of 2021 compared to an adjusted operating loss of $45.9 million in the first quarter of 2020, resulting primarily from an increase in the level of invested assets and lower operating expenses.
Unum reported revenues of $13.2 billion in 2020 and provided $7.6 billion in benefits.
The company's roots date to the 1848 founding of Union Mutual Life Insurance in Portland. The company was headquartered until 2002 in Maine, and currently employs 2,400 in the Portland area.
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