- Net income of $202.0 million
($1.02 per diluted common share) for
the third quarter of 2023; after-tax adjusted operating income was
$381.7 million ($1.94 per diluted common share).
- Results reflect continued strong execution, positive underlying
trends, and a favorable environment highlighted by robust
disability margins, and core operations premium growth of 6.1
percent on a constant currency basis.
- Strong balance sheet with holding company liquidity of
$1.2 billion and weighted average
risk-based capital ratio of approximately 470 percent, well in
excess of targets.
- Contributed capital at levels expected to fully recognize the
long-term care premium deficiency reserve by year-end; new share
repurchase authorization of $500
million beginning January 1,
2024.
- Book value per common share of $49.32 grew 16.9 percent over the year-ago
quarter; book value per common share excluding accumulated other
comprehensive income
(AOCI) of $65.47 grew 8.5 percent over the
year-ago quarter.
- Completed our first annual GAAP reserve assumption updates to
be filed under new accounting guidance resulting in a modest net
after-tax reserve increase of $139.3
million.
CHATTANOOGA, Tenn.,
Oct. 31,
2023 /PRNewswire/ --
Unum Group (NYSE: UNM) today reported net income of
$202.0 million ($1.02 per diluted common share) for the third
quarter of 2023, compared to net income of $510.3 million ($2.53 per diluted common share) for the third
quarter of 2022.
Included in net income for the third quarter of 2023 are the
after-tax amortization of the cost of reinsurance of $8.7 million ($0.04
per diluted common share), the after-tax impact of
non-contemporaneous reinsurance of $7.3
million ($0.04 per diluted
common share), an after-tax net reserve increase related to
assumption updates of $139.3 million
($0.71 per diluted common
share) driven by long-term
care, partially offset by releases in Unum
US group long-term disability and Colonial Life, and a net
after-tax investment loss on the Company's investment portfolio of
$24.4 million ($0.13 per diluted common share). Included in net
income for the third quarter of 2022 are the after-tax amortization
of the cost of reinsurance of $9.3
million ($0.04 per diluted
common share), the after-tax impact of non-contemporaneous
reinsurance of $1.4 million
($0.01 per diluted common share), an
after-tax net reserve decrease related to assumption updates of
$192.1 million ($0.95 per diluted common share), and a net
after-tax investment loss on the Company's investment portfolio of
$3.4 million ($0.02 per diluted common share). Excluding
the items above, after-tax adjusted operating income was
$381.7 million ($1.94 per diluted common share) in the third
quarter of 2023, compared to $332.3
million ($1.65 per diluted
common share) in the third quarter of 2022.
Effective January 1, 2023, the
Company adopted Accounting Standards Update 2018-12 (ASU 2018-12)
which amended the accounting and disclosure requirements for
long-duration insurance contracts, with changes applied as of
January 1, 2021. All prior period
operating results and related metrics throughout this document have
been adjusted for the impacts of the adoption.
"Our strong performance reflected excellent execution
across the enterprise, with very strong
top-line growth and profitability," said
Richard P. McKenney, president and
chief executive officer. "Our technology initiatives continue
to differentiate Unum and amplify our growth by providing customers
what they want, high-quality, digital-first experiences. We are
operating from a position of financial strength and making progress
on de-risking our balance sheet while also increasing capital
returns to shareholders. As we approach the end of 2023, our
capital deployment plans are on track and will accelerate in 2024,
market conditions remain favorable, and we believe we are well
positioned to achieve our earnings growth objectives and maintain
capital metrics well in excess of our targets."
RESULTS BY SEGMENT
We measure and analyze our segment performance on the basis of
"adjusted operating income" or "adjusted operating loss", which
differ from income before income tax as presented in our
consolidated statements of income due to the exclusion of
investment gains and losses, amortization of cost of reinsurance,
the impact of non-contemporaneous reinsurance, and reserve
assumption updates. Investment gains or losses primarily include
realized investment gains or losses, expected investment credit
losses, and gains or losses on derivatives. Reserve assumption
updates may result in increases or decreases to earnings. These
performance measures are in accordance with GAAP guidance for
segment reporting, but they should not be viewed as a substitute
for income before income tax, net income or net loss.
Unum US Segment
Unum US reported adjusted operating income of
$357.8 million in the third quarter
of 2023, an increase of 27.4 percent from $280.8 million in the third quarter of 2022,
which exclude the reserve assumption updates during each period.
Premium income increased 6.5 percent to $1,657.7 million in the third quarter of 2023,
compared to $1,556.8 million in the
third quarter of 2022. Net investment income decreased 2.6 percent
to $166.2 million in the third
quarter of 2023, compared to $170.6
million in the third quarter of 2022.
Within the Unum US operating segment, the group
disability line of business reported a 30.1 percent increase in
adjusted operating income to $170.1
million in the third quarter of 2023, compared to
$130.7 million in the third quarter
of 2022, which excludes the reserve decreases related to the
reserve assumption updates of $121.0
million during both the third quarters of 2023 and 2022.
Premium income for the group disability line of business increased
8.7 percent to $775.0 million in the
third quarter of 2023, compared to $713.1
million in the third quarter of 2022, driven by in-force
block growth and higher sales. Net investment income was
$84.2 million in the third quarter of
2023, which was generally consistent with the $84.8 million in the third quarter of 2022.
Excluding the reserve assumption updates, the benefit ratio for the
third quarter of 2023 was 57.5 percent, compared to 62.4 percent in
the third quarter of 2022, due primarily to favorable recoveries as
well as lower claim incidence in our group long-term disability
product line and favorable discount rate impacts on new claims.
Group long-term disability sales were $36.6
million in the third quarter of 2023, an increase of 3.4
percent from $35.4 million in the
third quarter of 2022. Group short-term disability sales were
$30.5 million in the third quarter of
2023, an increase of 66.7 percent from $18.3
million in the third quarter of 2022. Persistency in the
group long-term disability product line was 90.8 percent for the
first nine months of 2023, compared to 90.7 percent for the first
nine months of 2022. Persistency in the group short-term disability
product line was 89.1 percent for the first nine months of 2023,
compared to 89.2 percent for the first nine months of 2022.
The group life and accidental death and
dismemberment line of business reported an 84.4 percent increase in
adjusted operating income to $52.0
million in the third quarter of 2023, compared to
$28.2 million in the third quarter of
2022, which excludes the reserve decrease related to the reserve
assumption update of $34.0 million
for the third quarter of 2022. Premium income for this line of
business increased 1.2 percent to $467.1
million in the third quarter of 2023, compared to the
$461.5 million in the third quarter
of 2022 due primarily to higher sales. Net investment income
decreased 6.3 percent to $23.7
million in the third quarter of 2023, compared to
$25.3 million in the third quarter of
2022, due primarily to a decrease in the level of invested assets
and lower miscellaneous investment income, partially offset by an
increase in the yield on invested assets. The benefit ratio in the
third quarter of 2023 was 73.3 percent, compared to 78.0 percent in
the third quarter of 2022, which excludes the reserve assumption
update, due primarily to lower mortality, resulting primarily from
lessening impacts of COVID-19 on our insured population, and a
lower average claim size in the group life product line. Sales of
group life and accidental death and dismemberment
products decreased 6.3 percent in the third quarter of 2023 to
$25.2 million, compared to
$26.9 million in the third quarter of
2022. Persistency in the group life product line was 89.3 percent
for the first nine months of 2023, compared to 89.2 percent for the
first nine months of 2022. Persistency in the accidental death and
dismemberment product line was
88.2 percent for the first nine months of 2023, compared
to 88.1 percent
for the first nine months of 2022.
The supplemental and voluntary line of business
reported an increase of 11.3 percent in adjusted operating income
to $135.7 million in the third quarter of 2023, compared to
$121.9 million in the third quarter
of 2022, which excludes the net reserve decreases related to the
assumption updates of $7.8 million
and $15.8 million during the third
quarters of 2023 and 2022, respectively. Premium income for the
supplemental and voluntary line of business increased 8.7 percent
to $415.6 million in the third
quarter of 2023, compared to $382.2
million in the third quarter of 2022, due primarily to the
partial recapture of a block of business in the individual
disability product line and higher persistency in the voluntary
benefits product line. Net investment income decreased 3.6 percent
to $58.3 million in the third quarter
of 2023, compared to $60.5 million in
the third quarter of 2022, due primarily to a decline in yield on
invested assets and lower miscellaneous investment income,
partially offset by an increase in the level of invested assets.
The benefit ratio for the voluntary benefits product line, which
exclude the reserve decreases related to the assumption updates of
$10.4 million and $17.0 million during the third quarters of 2023
and 2022, respectively, was 39.1 percent in the third quarter of
2023, compared to 43.7 percent in the third quarter of 2022, due
primarily to favorable experience in the disability and life
product lines. The benefit ratio for the individual disability
product line, which exclude the reserve increases related to the
assumption updates of $2.6 million
and $1.2 million during the third
quarters of 2023 and 2022, respectively, was 45.4 percent for the
third quarter of 2023, compared to 44.0 percent in the third
quarter of 2022, due primarily to higher average size of submitted
claims. The benefit ratio for the dental and vision product line
was 67.4 percent for the third quarter of 2023, compared to 74.5
percent in the third quarter of 2022, due primarily to lower claim
incidence. Relative to the third quarter of 2022, sales in the
voluntary benefits product line decreased 3.7 percent in the third
quarter of 2023 to $39.0 million.
Sales in the individual disability product line of $25.6 million were generally consistent in the
third quarter of 2023 compared to the same period of 2022. Sales in
the dental and vision product line increased 33.3 percent in the
third quarter of 2023 to $14.0
million. Persistency in the voluntary benefits product line
was 75.5 percent for the first nine months of 2023, compared to
75.1 percent for the first nine months of 2022. Persistency in the
individual disability product line was 89.3 percent for the first
nine months of 2023, compared to 89.2 percent for the first nine
months of 2022. Persistency in the dental and vision product line
was 76.2 percent for the first nine months of 2023, compared to
81.4 percent for the first nine months of 2022.
Unum International Segment
The Unum International segment reported
adjusted operating income of $36.8
million in the third quarter of 2023, an increase of 47.8
percent from $24.9 million in the
third quarter of 2022, which excludes the reserve increase of
$17.9 million and the reserve
decrease $7.6 million related to the
assumption updates during the third quarters of 2023 and 2022,
respectively. Premium income increased 21.5 percent to $210.6 million in the third quarter of 2023,
compared to $173.3 million in the
third quarter of 2022. Net investment income decreased 26.2 percent
to $27.3 million in the third quarter
of 2023, compared to $37.0 million in
the third quarter of 2022. Sales decreased 24.7 percent
to $30.2 million in the third quarter
of 2023, compared to $40.1 million
in the third quarter of 2022.
The Unum UK line of business reported adjusted
operating income, in local currency, of £28.4 million in the third
quarter of 2023, an increase of 21.9 percent from £23.3 million in
the third quarter of 2022, which excludes the reserve increase of
£16.3 million and the reserve decrease of £5.3 million related to
the assumption updates during the third quarters of 2023 and 2022,
respectively. Premium income was £142.2 million in the third
quarter of 2023, an increase of 9.9 percent from £129.4 million in
the third quarter of 2022, due primarily to in-force block growth.
Net investment income was £19.5 million in the third quarter of
2023, a decrease of 34.8 percent from £29.9 million in the third
quarter of 2022, due primarily to lower investment income from
inflation index-linked bonds. The benefit ratio, excluding the
reserve assumption updates, was 67.4 percent in the third quarter
of 2023, compared to 78.7 percent in the third quarter of 2022, due
to favorable claim incidence, favorable claim resolutions, and
higher discount rates on new claims in the group long-term
disability product line, and lower inflation-linked experience in
benefits, partially offset by higher incidence in the supplemental
product line. Sales decreased 41.1 percent to £18.2 million in the
third quarter of 2023, compared to £30.9 million in the third
quarter of 2022. Persistency in the group long-term
disability product line was 92.4 percent for the first nine
months of 2023, compared to 84.9 percent for the first nine months
of 2022. Persistency in the group life product line was 83.6
percent for the first nine months of 2023, compared to 88.2 percent
for the first nine months of 2022. Persistency in the supplemental
product line was 91.0 percent for the first nine months of 2023,
compared to 92.3 percent for the first nine months of 2022.
Colonial Life Segment
Colonial Life reported adjusted operating income
of $102.9 million in the third
quarter of 2023, a 12.7 percent decrease compared to $117.9 million in the third quarter of 2022,
which excludes the reserve decreases related to the assumption
updates of $80.7 million and
$55.2 million during the third
quarters of 2023 and 2022, respectively. Premium income increased
to $431.2 million in the third
quarter of 2023, compared to $423.3
million in the third quarter of 2022, due to higher sales in
prior periods, partially offset by lower persistency. Net
investment income increased to $39.3
million in the third quarter of 2023, compared to
$38.6 million in the third quarter of
2022, due primarily to an increase in the yield on invested assets
and an increase in the level of invested assets. The benefit ratio,
excluding the reserve assumption updates, was 49.1 percent in the
third quarter of 2023, compared to 48.7 percent in the third
quarter of 2022, primarily due to higher incidence in the life
product line. Sales increased 4.7 percent to $121.3 million in the third quarter of 2023,
compared to $115.9 million in the
third quarter of 2022. Persistency in the Colonial Life segment was
77.9 percent for the first nine months of 2023, compared to 78.3
percent for the first nine months of 2022.
Closed Block Segment
The Closed Block segment reported adjusted
operating income of $34.2 million in
the third quarter of 2023, which excludes the amortization of cost
of reinsurance of $11.1 million and
the impact of non-contemporaneous reinsurance of $9.2 million related to the Closed Block
individual disability reinsurance transaction as well as the net
reserve increase related to the assumption updates of $368.8 million, compared to $42.1 million in the third quarter of 2022, which
excludes the amortization of cost of reinsurance of $11.8 million and the impact of
non-contemporaneous reinsurance of $1.7
million related to the Closed Block individual disability
reinsurance transaction and the net reserve decrease related to the
assumption updates of $9.7 million.
Premium income for this segment is largely driven by our long-term
care product line, and in the third quarter of 2023, premium income
for long-term care was generally consistent with the same period of
2022. Net investment income increased 9.3 percent to $274.9 million in the third quarter of 2023,
compared to $251.4 million in the
third quarter of 2022, due to an increase in the level of invested
assets and higher miscellaneous investment income, primarily
related to increases in the net asset values on our private equity
partnerships.
The interest adjusted loss ratio for the
long-term care product line, which excludes the reserve increase
related to assumption update of $368.1
million was 105.3 percent in the third quarter of 2023,
compared to an interest adjusted loss ratio of 83.6 percent in the
third quarter of 2022, which excludes the reserve decrease related
to the assumption update of $2.9 million, driven primarily by
higher claim incidence as well as impacts from the change in the
net premium ratio resulting from the reserve assumption update.
Underlying claims experience was lower in the third quarter of 2023
compared to the second quarter of 2023.
Corporate Segment
The Corporate segment reported
an adjusted operating loss of $41.5
million in the third quarter
of 2023, compared to an adjusted operating loss of
$49.5 million in the third quarter of
2022, due primarily to increased net investment income, which was
driven by an increase in yield on invested assets, partially offset
by higher pension expenses.
OTHER INFORMATION
Shares Outstanding
The Company's weighted average number of shares
outstanding, assuming dilution, was 197.1 million for the third
quarter of 2023, compared to 201.7 million for the third quarter of
2022. Shares outstanding totaled 195.0 million at September 30, 2023. During the third quarter of
2023, the Company repurchased 1.5 million shares at a total cost
of $74.8 million.
Capital Management
At September 30,
2023, the weighted average risk-based capital ratio for the
Company's traditional U.S. insurance companies was approximately
470 percent, and the holding companies had available holding
company liquidity of $1,182.0
million.
Book Value
Book value per common
share as of September 30, 2023 was $49.32, compared
to $42.20 at September 30, 2022. Book
value per common share excluding AOCI as of September 30, 2023 was $65.47, compared to $60.33 at September 30,
2022.
Effective Tax Rate
The effective tax rate on adjusted
operating earnings was 22.1 percent
in the third quarter of 2023.
Outlook
Full-year 2023 outlook of an increase in
after-tax adjusted operating income per share of 20 percent to 25
percent when comparing to historically reported 2022 results.
NON-GAAP FINANCIAL MEASURES
We analyze our performance using non-GAAP financial measures. A
non-GAAP financial measure is a numerical measure of a company's
performance, financial position, or cash flows that excludes or
includes amounts that are not normally excluded or included in the
most directly comparable measure calculated and presented in
accordance with GAAP. The non-GAAP financial measure of "after-tax
adjusted operating income" differs from net income as presented in
our consolidated operating results and income statements prepared
in accordance with GAAP due to the exclusion of investment gains or
losses, the amortization of the cost of reinsurance, the impact of
non-contemporaneous reinsurance, and reserve assumption updates as
specified in the reconciliations in the
Financial Highlights section below. Investment gains
or losses primarily include realized investment gains or losses,
expected investment credit losses, and gains or losses on
derivatives. We believe after-tax adjusted operating income is
a better performance measure and better indicator of the
profitability and underlying trends in our business.
Investment gains or losses depend on market conditions and do
not necessarily relate to decisions regarding the underlying
business of our segments. Our investment focus is on investment
income to support our insurance liabilities as opposed to the
generation of investment gains or losses. Although we may
experience investment gains or losses which will affect future
earnings levels, a long-term focus is necessary to maintain
profitability over the life of the business since our underlying
business is long-term in nature, and we need to earn the interest
rates assumed in calculating our liabilities.
Cash flow assumptions used to calculate our liability for future policy
benefits are reviewed at least annually
and updated, as needed, with the resulting impact
reflected in net income. While the effects of these assumption
updates are recorded in the reporting period in which the review is
completed, these updates reflect experience emergence and changes
to expectations spanning multiple periods. We believe that by
excluding the impact of reserve assumption updates we are providing
a more comparable and consistent view of our quarterly results.
We exited a substantial portion of our Closed Block individual
disability product line through the two phases of the reinsurance
transaction that were executed in December 2020 and March 2021. As
a result, we exclude the amortization of the cost of
reinsurance that we recognized upon the exit of the business
related to the policies on claim status as well as the impact of
non-contemporaneous reinsurance that resulted from the adoption of
ASU 2018-12. Due to the execution of the second phase of the
reinsurance transaction occurring after January 1, 2021, the transition date of ASU
2018-12, in accordance with the provisions of the ASU related to non-contemporaneous reinsurance, we were required
to
establish the ceded reserves using an upper-medium grade fixed-income instrument as of the reinsurance transaction date
in March 2021, which resulted in
higher ceded reserves compared to that which was reported
historically. However, the direct reserves for the block
reinsured in the second phase were calculated using the original
discount rate utilized as of the transition date. Both the
direct and ceded reserves are then remeasured at each reporting
period using a current discount rate reflective of an upper-medium
grade fixed-income instrument, with the changes recognized in other
comprehensive income (loss). While the total equity impact is
neutral, the different original discount rates utilized for direct
and ceded reserves result in disproportionate earnings impacts. The
impact of non-contemporaneous reinsurance will fluctuate depending
on the magnitude of reserve changes during the period. We
believe that the exclusion of these items provides a better view of
our results from our ongoing businesses.
We may at other times exclude certain other items from our
discussion of financial ratios and metrics in order to enhance the
understanding and comparability of our operational performance and
the underlying fundamentals, but this exclusion is not an
indication that similar items may not recur and does not replace
net income or net loss as a measure of our overall
profitability.
CONFERENCE CALL INFORMATION
Members of Unum Group senior management will host a conference call on Wednesday, November 1, 2023, at 8:00 am
(Eastern Time) to discuss the results of operations for the third
quarter of 2023. Topics may include forward-looking
information, such as the Company's outlook on future results,
trends in operations, and other material information.
The dial-in number for the conference call is 1-888-210-4821 for U.S. (access
code: 5666159). For U.K. callers, the dial-in number
is 44-800-358-0970 (access code: 5666159). For all other callers,
the dial-in number is 1-646-960-0323 (access code:
5666159). A live webcast of the call will also be
available at www.investors.unum.com in a listen-only mode. It is
recommended that webcast viewers access the "Investors" section of
the Company's website and opt-in to the webcast approximately 5-10
minutes prior to the start of the call. A replay of the webcast
will be available on the Company's website. A replay of the call
will also be available through Wednesday,
November 8 by dialing 1-800-770-2030 (U.S.) or
1-647-362-9199 (all other locations) - access code 5666159.
In conjunction with today's earnings
announcement, the Company's
Statistical Supplement for the third quarter of 2023
is available on the "Investors" section of the Company's
website.
ABOUT UNUM GROUP
Unum Group (NYSE: UNM), an international provider of workplace benefits and services, has been helping
workers and their families for 175 years. Through its
Unum and Colonial Life brands, the company offers disability, life,
accident, critical illness, dental, vision and stop-loss insurance;
leave and absence management support and behavioral health
services. In 2022, Unum reported revenues of about
$12 billion and paid $8 billion in benefits. The Fortune 500
company is one of the 2023 World's Most Ethical Companies,
recognized by Ethisphere®.
For more information, connect
with us on Facebook (www.facebook.com/unumbenefits) and LinkedIn
(www.linkedin.com/company/unum).
SAFE HARBOR STATEMENT
Certain information in this news release constitutes
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are those not based on historical information, but
rather relate to our outlook, future operations, strategies,
financial results, or other developments and speak only as of the
date made. These forward-looking statements, including statements
about anticipated growth in after-tax adjusted operating income per
share, are subject to numerous assumptions, risks, and
uncertainties, many of which are beyond our control. The following
factors, in addition to other factors mentioned from time to time,
may cause actual results to differ materially from those
contemplated by the forward-looking statements: (1) fluctuation in
insurance reserve liabilities and claim payments due to changes in
claim incidence, recovery rates, mortality and morbidity rates, and
policy benefit offsets due to, among other factors, the rate of
unemployment and consumer confidence, the emergence of new
diseases, epidemics, or pandemics, new trends and developments in
medical treatments, the effectiveness of our claims operational
processes, and changes in governmental programs; (2) sustained
periods of low interest rates; (3) unfavorable economic or business
conditions, both domestic and foreign, that may result in decreases
in sales, premiums, or persistency, as well as unfavorable claims
activity or unfavorable returns on our investment portfolio; (4)
the impact of pandemics and other public health issues, including
COVID-19, on our business, financial position, results of
operations, liquidity and capital resources, and overall business
operations; (5) changes in, or interpretations or enforcement of,
laws and regulations; (6) our ability to hire and retain qualified
employees; (7) a cyber attack or other security breach resulting in
the unauthorized acquisition of confidential data; (8) the failure
of our business recovery and incident management processes to
resume our business operations in the event of a natural
catastrophe, cyber attack, or other event; (9) investment results,
including, but not limited to, changes in interest rates, defaults,
changes in credit spreads, impairments, and the lack of appropriate
investments in the market which can be acquired to match our
liabilities; (10) increased competition from other insurers and
financial services companies due to industry consolidation, new
entrants to our markets, or other factors; (11) changes in our
financial strength and credit ratings; (12) our ability to develop
digital capabilities or execute on our technology systems upgrades
or replacements; (13) actual experience in the broad array of our
products that deviates from our assumptions used in pricing,
underwriting, and reserving; (14) ineffectiveness of our
derivatives hedging programs due to changes in forecasted cash
flows, the economic environment, counterparty risk, ratings
downgrades, capital market volatility, changes in interest rates,
and/or regulation; (15) availability of reinsurance in the market
and the ability of our reinsurers to meet their obligations to us;
(16) ability to generate sufficient internal liquidity and/or
obtain external financing; (17) damage to our reputation due to,
among other factors, regulatory investigations, legal proceedings,
external events, and/or inadequate or failed internal controls and
procedures; (18) disruptions to our business or our ability to
leverage data caused by the use and reliance on third-party
vendors, including vendors providing web and cloud-based
applications; (19) recoverability and/or realization of the
carrying value of our intangible assets, long-lived assets, and
deferred tax assets; (20) effectiveness of our risk management
program; (21) contingencies and the level and results of
litigation; (22) fluctuation in foreign currency exchange rates;
and (23) our ability to meet environmental, social, and governance
standards and expectations of investors, regulators, customers, and
other stakeholders
For further discussion of risks and uncertainties which could
cause actual results to differ from those contained in the
forward-looking statements, see Part 1, Item 1A "Risk Factors" of our annual
report on Form 10-K for the year ended
December 31, 2022. The
forward-looking statements in this news release are being made as
of the date of this news
release, and we expressly disclaim
any obligation to update or revise any forward-looking statement contained herein,
even if made available on our website or otherwise.
Unum Group
FINANCIAL HIGHLIGHTS
(Unaudited)
|
($ in millions, except share
data)
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
2023
|
2022
|
|
2023
|
2022
|
Revenue
|
|
|
|
|
|
Premium
Income
|
$
2,525.9
|
$
2,388.9
|
|
$
7,494.3
|
$
7,206.3
|
Net Investment
Income
|
526.0
|
511.6
|
|
1,565.9
|
1,597.8
|
Net Investment
Loss
|
(31.0)
|
(4.4)
|
|
(30.0)
|
(22.3)
|
Other Income
|
71.6
|
63.0
|
|
210.6
|
197.5
|
Total Revenue
|
3,092.5
|
2,959.1
|
|
9,240.8
|
8,979.3
|
|
|
|
|
|
|
Benefits and Expenses
|
|
|
|
|
|
Policy Benefits
Including Remeasurement Loss or
|
|
|
|
|
|
Gain
|
1,947.0
|
1,501.5
|
|
5,437.0
|
5,215.8
|
Commissions
|
289.7
|
271.5
|
|
869.7
|
819.1
|
Interest and Debt
Expense
|
48.6
|
47.0
|
|
145.6
|
141.3
|
Cost Related to Early
Retirement of Debt
|
—
|
4.2
|
|
—
|
4.2
|
Deferral of Acquisition
Costs
|
(153.3)
|
(139.4)
|
|
(467.5)
|
(419.1)
|
Amortization of
Deferred Acquisition Costs
|
129.1
|
102.9
|
|
358.7
|
313.0
|
Other
Expenses
|
569.7
|
529.8
|
|
1,685.9
|
1,528.5
|
Total Benefits and Expenses
|
2,830.8
|
2,317.5
|
|
8,029.4
|
7,602.8
|
|
|
|
|
|
|
Income Before Income Tax
|
261.7
|
641.6
|
|
1,211.4
|
1,376.5
|
Income Tax
Expense
|
59.7
|
131.3
|
|
258.2
|
258.5
|
|
|
|
|
|
|
Net Income
|
$
202.0
|
$
510.3
|
|
$
953.2
|
$
1,118.0
|
|
|
|
|
|
|
PER SHARE INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Common
Share
|
|
|
|
|
|
Basic
|
$
1.03
|
$
2.55
|
|
$
4.83
|
$
5.55
|
Assuming
Dilution
|
$
1.02
|
$
2.53
|
|
$
4.81
|
$
5.52
|
|
|
|
|
|
|
Weighted Average Common
Shares - Basic
|
|
|
|
|
|
(000s)
|
196,083.2
|
200,035.3
|
|
197,289.5
|
201,262.3
|
Weighted Average Common
Shares - Assuming
|
|
|
|
|
|
Dilution
(000s)
|
197,131.8
|
201,650.2
|
198,295.1
|
202,519.0
|
Outstanding Shares -
(000s)
|
|
|
195,017.0
|
199,125.3
|
Reconciliation of Non-GAAP Financial
Measures
|
|
|
Three Months Ended
September 30
|
|
2023
|
2022
|
|
(in
millions)
|
per share *
|
(in
millions)
|
per share *
|
Net Income
|
$
202.0
|
$
1.02
|
$
510.3
|
$
2.53
|
Excluding:
|
|
|
|
|
Net Investment Loss
(net of tax benefit of $6.6; $1.0)
|
(24.4)
|
(0.13)
|
(3.4)
|
(0.02)
|
Amortization of the
Cost of Reinsurance (net of tax benefit of $2.4; $2.5)
|
(8.7)
|
(0.04)
|
(9.3)
|
(0.04)
|
Non-Contemporaneous
Reinsurance (net of tax benefit of $1.9; $0.3)
|
(7.3)
|
(0.04)
|
(1.4)
|
(0.01)
|
Reserve Assumption
Updates (net of tax expense (benefit) of $(37.9); $51.2)
|
(139.3)
|
(0.71)
|
192.1
|
0.95
|
After-tax Adjusted Operating
Income
|
$
381.7
|
$
1.94
|
$
332.3
|
$
1.65
|
|
* Assuming
Dilution
|
|
September 30
|
|
2023
|
2022
|
|
(in
millions)
|
per share
|
(in
millions)
|
per share
|
Total Stockholders' Equity (Book
Value)
|
$
9,618.1
|
$
49.32
|
$
8,402.8
|
$
42.20
|
Excluding:
|
|
|
|
|
Net Unrealized Loss on
Securities
|
(3,948.4)
|
(20.25)
|
(3,486.3)
|
(17.51)
|
Effect of
Change in Discount Rate Assumptions on the
Liability for Future Policy Benefits
|
1,688.5
|
8.66
|
681.7
|
3.42
|
Net Unrealized Gain
(Loss) on Hedges
|
(177.7)
|
(0.91)
|
13.5
|
0.07
|
Subtotal
|
12,055.7
|
61.82
|
11,193.9
|
56.22
|
Excluding:
|
Foreign Currency
Translation Adjustment
|
|
(382.2)
|
|
(1.95)
|
|
(439.0)
|
|
(2.20)
|
Subtotal
|
|
12,437.9
|
|
63.77
|
|
11,632.9
|
|
58.42
|
Excluding:
|
|
|
|
|
|
|
|
|
Unrecognized Pension and Postretirement Benefit
Costs
|
|
(330.8)
|
|
(1.70)
|
|
(380.9)
|
|
(1.91)
|
Total Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss
|
$
|
12,768.7
|
$
|
65.47
|
$
|
12,013.8
|
$
|
60.33
|
|
Three Months
Ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
Premium
Income
|
|
Premium Income
in Local
Currency1
|
Weighted
Average
Exchange Rate2
|
Premium Income
in Constant
Currency
|
Unum
International
|
|
|
|
|
|
Unum UK
|
$
179.9
|
£
|
129.4
|
1.265
|
$
163.7
|
Unum Poland
|
30.7
|
zł
|
99.7
|
0.242
|
24.1
|
Total
|
210.6
|
|
|
|
187.8
|
Unum US
|
1,657.7
|
$
|
1,556.8
|
|
1,556.8
|
Colonial
Life
|
431.2
|
$
|
423.3
|
|
423.3
|
Core
Operations
|
$
2,299.5
|
|
|
|
$
2,167.9
|
|
1Premium
income shown in millions of pounds for Unum UK, millions of zlotys
for Unum Poland, and millions of U.S. dollars for Unum US and
Colonial Life.
|
2Exchange
rate is calculated using the average foreign currency exchange
rates for the most recent period, applied to the comparable prior
period.
|
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SOURCE Unum Group