- Net income of $645.7 million ($3.46 per diluted common share)
for the third quarter of 2024; after-tax adjusted operating income
was $398.0 million ($2.13 per diluted common share).
- Growing top-line with core operations premium growth of 4.6
percent on a constant currency basis, and continued strong margins
across our businesses.
- Strong balance sheet with holding company liquidity of $1.4
billion and weighted average risk-based capital ratio of
approximately 470 percent, well in excess of targets; statutory
operating earnings of $315.6 million.
- Book value per common share of $59.36 grew 20.4 percent over
the year-ago quarter; book value per common share excluding
accumulated other comprehensive income (AOCI) of $74.15 grew 13.3
percent over the year-ago quarter.
- Completed our annual GAAP reserve assumption updates; positive
trends in long-term care and other product lines drove a before-tax
net reserve decrease of $357.4 million.
Unum Group (NYSE: UNM) today reported net income of $645.7
million ($3.46 per diluted common share) for the third quarter of
2024, compared to net income of $202.0 million ($1.02 per diluted
common share) for the third quarter of 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20241029887090/en/
Unum Group (Photo: Business Wire)
Included in net income for the third quarter of 2024 are the
after-tax amortization of the cost of reinsurance of $8.2 million
($0.04 per diluted common share), the after-tax impact of
non-contemporaneous reinsurance of $4.8 million ($0.03 per diluted
common share), an after-tax net reserve decrease related to
assumption updates of $282.6 million ($1.51 per diluted common
share), an after-tax loss resulting from a legal settlement of
$12.1 million ($0.06 per diluted common share), and a net after-tax
investment loss on the Company’s investment portfolio of $9.8
million ($0.05 per diluted common share). 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), and a net after-tax investment
loss on the Company’s investment portfolio of $24.4 million ($0.13
per diluted common share). Excluding the items above, after-tax
adjusted operating income was $398.0 million ($2.13 per diluted
common share) in the third quarter of 2024, compared to $381.7
million ($1.94 per diluted common share) in the third quarter of
2023.
“Our third quarter results demonstrated the broad-based solid
performance that we have shown throughout 2024. We continued to
execute on our strategy, resulting in growth in premiums and
operating income, with particularly strong performance within Group
Life,” said Richard P. McKenney, president and chief executive
officer. “As we enter the fourth quarter, we are well positioned.
The market environment remains favorable, and we continue to invest
in the growth of our business while returning capital to our
shareholders. We remain confident in our ability to achieve our
full year 2024 earnings outlook.”
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, reserve assumption
updates, and certain other items as specified in the
reconciliations below. 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
$363.3 million in the third quarter of 2024, an increase of 1.5
percent from $357.8 million in the third quarter of 2023, which
excludes the reserve assumption updates during each period. Premium
income increased 4.0 percent to $1,723.5 million in the third
quarter of 2024, compared to $1,657.7 million in the third quarter
of 2023. Net investment income declined 3.1 percent to $161.0
million in the third quarter of 2024, compared to the $166.2
million in the third quarter of 2023.
Within the Unum US operating segment, the
group disability line of business reported a 7.9 percent decrease
in adjusted operating income to $156.7 million in the third quarter
of 2024, compared to $170.1 million in the third quarter of 2023,
which excludes the reserve decrease of $90.0 million and $121.0
million related to the assumption updates during the third quarters
of 2024 and 2023, respectively. Premium income for the group
disability line of business increased 2.4 percent to $793.4 million
in the third quarter of 2024, compared to $775.0 million in the
third quarter of 2023, driven by favorable persistency and prior
period sales. Net investment income decreased 6.5 percent to $78.7
million in the third quarter of 2024, compared to $84.2 million in
the third quarter of 2023, due to a decrease in the level of
invested assets, partially offset by an increase in the yield on
invested assets. Excluding the reserve assumption updates, the
benefit ratio for the third quarter of 2024 was 59.1 percent,
compared to 57.5 percent in the third quarter of 2023, due to
higher incidence in our long-term disability and short-term
disability product lines and higher average claim size in the
long-term disability product line, partially offset by favorable
recoveries in the long-term disability product line. Group
long-term disability sales were $24.4 million in the third quarter
of 2024, a decrease of 33.3 percent from $36.6 million in the third
quarter of 2023. Group short-term disability sales were $15.9
million in the third quarter of 2024, a decrease of 47.9 percent
from $30.5 million in the third quarter of 2023. Persistency in the
group long-term disability product line was 93.5 percent for the
first nine months of 2024, compared to 90.8 percent for the first
nine months of 2023. Persistency in the group short-term disability
product line was 91.9 percent for the first nine months of 2024,
compared to 89.1 percent for the first nine months of 2023.
The group life and accidental death and
dismemberment line of business reported a 80.8 percent increase in
adjusted operating income to $94.0 million in the third quarter of
2024, which excludes the reserve decrease of $13.0 million related
to the assumption update in the third quarter of 2024, compared to
$52.0 million in the third quarter of 2023. Premium income for this
line of business increased 6.0 percent to $494.9 million in the
third quarter of 2024, compared to the $467.1 million in the third
quarter of 2023 due primarily to favorable persistency and prior
period sales. Net investment income decreased 6.8 percent to $22.1
million in the third quarter of 2024, compared to $23.7 million in
the third quarter of 2023 due to a decrease in the level of
invested assets, partially offset by an increase in the yield on
invested assets. Excluding the reserve assumption update, the
benefit ratio in the third quarter of 2024 was 65.0 percent,
compared to 73.3 percent in the third quarter of 2023, due
primarily to favorable incidence in the group life product line.
Group life and accidental death and dismemberment sales were $26.5
million in the third quarter of 2024, an increase of 5.2 percent
from $25.2 million in the third quarter of 2023. Persistency in the
group life product line was 92.0 percent for the first nine months
of 2024, compared to 89.3 percent for the first nine months of
2023. Persistency in the accidental death and dismemberment product
line was 91.2 percent for the first nine months of 2024, compared
to 88.2 percent for the first nine months of 2023.
The supplemental and voluntary line of
business reported a decrease of 17.0 percent in adjusted operating
income to $112.6 million in the third quarter of 2024, compared to
$135.7 million in the third quarter of 2023, which excludes the net
reserve decrease of $40.6 million and $7.8 million during the third
quarters of 2024 and 2023, respectively. Premium income for the
supplemental and voluntary line of business increased 4.7 percent
to $435.2 million in the third quarter of 2024, compared to $415.6
million in the third quarter of 2023, due to favorable persistency
in the voluntary benefits and dental and vision product lines and
higher prior period sales in the voluntary benefits and individual
disability product lines. Net investment income increased 3.3
percent to $60.2 million in the third quarter of 2024, compared to
$58.3 million in the third quarter of 2023, due primarily to an
increase in the yield on invested assets. The benefit ratio for the
voluntary benefits product line, which excludes the reserve
increase of $12.2 million and the reserve decrease of $10.4 million
related to the assumption updates during the third quarters of 2024
and 2023, respectively, was 45.8 percent in the third quarter of
2024, compared to 39.1 percent in the third quarter of 2023, due to
less favorable experience in the critical illness and life product
lines. The benefit ratio for the individual disability product
line, which excludes the reserve decrease of $52.8 million and the
reserve increase of $2.6 million during the third quarters of 2024
and 2023, respectively, was 42.8 percent for the third quarter of
2024, compared to 45.4 percent in the third quarter of 2023, due
primarily to favorable recoveries, partially offset by higher claim
size. The benefit ratio for the dental and vision product line was
74.6 percent for the third quarter of 2024, compared to 67.4
percent in the third quarter of 2023, due primarily to higher
claims incidence and higher average claim size. Relative to the
third quarter of 2023, sales in the voluntary benefits product line
increased 16.9 percent in the third quarter of 2024 to $45.6
million. Sales in the individual disability product line increased
14.8 percent to $29.4 million in the third quarter of 2024. Sales
in the dental and vision product line decreased 10.7 percent in the
third quarter of 2024 to $12.5 million. Persistency in the
voluntary benefits product line was 76.4 percent for the first nine
months of 2024, compared to 75.5 percent for the first nine months
of 2023. Persistency in the individual disability product line was
89.0 percent for the first nine months of 2024, compared to 89.3
percent for the first nine months of 2023. Persistency in the
dental and vision product line was 81.4 percent for the first nine
months of 2024, compared to 76.2 percent for the first nine months
of 2023.
Unum International
Segment
The Unum International segment reported
adjusted operating income of $40.3 million in the third quarter of
2024, an increase of 9.5 percent from $36.8 million in the third
quarter of 2023, which excludes the reserve increase related to
assumption updates of $7.5 million and $17.9 million during the
third quarters of 2024 and 2023, respectively. Premium income
increased 17.1 percent to $246.6 million in the third quarter of
2024, compared to $210.6 million in the third quarter of 2023. Net
investment income increased 11.4 percent to $30.4 million in the
third quarter of 2024, compared to $27.3 million in the third
quarter of 2023. Sales increased 26.5 percent to $38.2 million in
the third quarter of 2024, compared to $30.2 million in the third
quarter of 2023.
The Unum UK line of business reported
adjusted operating income, in local currency, of £29.5 million in
the third quarter of 2024, an increase of 3.9 percent from £28.4
million in the third quarter of 2023, which excludes the reserve
increase related to the assumption updates of $6.4 million and
$16.3 million during the third quarters of 2024 and 2023,
respectively. Premium income was £158.9 million in the third
quarter of 2024, an increase of 11.7 percent from £142.2 million in
the third quarter of 2023, due primarily to in-force block growth.
Net investment income was £21.2 million in the third quarter of
2024, an increase of 8.7 percent from £19.5 million in the third
quarter of 2023, primarily due to higher yield on invested assets,
partially offset by lower investment income from inflation-indexed
linked bonds. The benefit ratio, excluding the reserve assumption
updates, was 69.5 percent in the third quarter of 2024, compared to
67.4 percent in the third quarter of 2023, due primarily to higher
incidence in the group long-term disability and group life product
lines, partially offset by favorable incidence in the supplemental
product line and favorable recoveries in the group long-term
disability product line. Sales increased 26.9 percent to £23.1
million in the third quarter of 2024, compared to £18.2 million in
the third quarter of 2023. Persistency in the group long-term
disability product line was 92.3 percent for the first nine months
of 2024, compared to 92.4 percent for the first nine months of
2023. Persistency in the group life product line was 88.6 percent
for the first nine months of 2024, compared to 83.6 percent for the
first nine months of 2023. Persistency in the supplemental product
line was 90.4 percent for the first nine months of 2024, compared
to 91.0 percent for the first nine months of 2023.
Colonial Life
Segment
Colonial Life reported adjusted operating
income of $113.4 million in the third quarter of 2024, a 10.2
percent increase compared to $102.9 million in the third quarter of
2023, which excludes the reserve decrease related to the assumption
updates of $46.0 million and $80.7 million, during the third
quarter of 2024 and 2023, respectively. Premium income increased
2.5 percent to $441.9 million in the third quarter of 2024,
compared to $431.2 million in the third quarter of 2023, due to
higher prior period sales and generally stable persistency. Net
investment income was $39.6 million in the third quarter of 2024,
which was generally consistent with the $39.3 million in the third
quarter of 2023. The benefit ratio, excluding the reserve
assumption updates, was 47.6 percent in the third quarter of 2024,
compared to 49.1 percent in the third quarter of 2023, primarily
due to favorable benefit experience in the cancer and critical
illness and life product lines. Sales decreased 0.3 percent to
$120.9 million in the third quarter of 2024, compared to $121.3
million in the third quarter of 2023. Persistency in the Colonial
Life segment was 78.0 percent for the first nine months of 2024,
compared to 77.9 percent for the first nine months of 2023.
Closed Block
Segment
The Closed Block segment reported adjusted
operating income of $34.2 million in the third quarter of 2024,
which excludes the amortization of cost of reinsurance of $10.4
million and the impact of non-contemporaneous reinsurance of $6.0
million related to the Closed Block individual disability
reinsurance transaction as well as the net reserve decrease related
to the assumption updates of $175.3 million, compared to $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 and the
net reserve increase related to the assumption updates of $368.8
million. Premium income for this segment is largely driven by our
long-term care product line, and in the third quarter of 2024,
premium income for long-term care was generally consistent with the
same period of 2023. Net investment income increased 3.4 percent to
$284.3 million in the third quarter of 2024, compared to $274.9
million in the third quarter of 2023, primarily due to an increase
in the level of invested assets.
Policy benefits including remeasurement loss
(gain), excluding the impacts of non-contemporaneous reinsurance
and the reserve assumption updates, for the Closed Block segment
were generally consistent during the third quarter of 2024 relative
to the same period of 2023. The net premium ratio for the long-term
care product line increased to 94.5 percent at September 30, 2024
from 93.4 percent at September 30, 2023, due primarily to
policyholder terminations and the assumption updates in the third
quarter of 2024. Compared to June 30, 2024, the net premium ratio
increased from 93.7 percent to 94.5 percent due to the assumption
updates in the third quarter of 2024. Overall claim experience for
long-term care continued to improve sequentially, as expected.
Corporate
Segment
The Corporate segment reported an adjusted
operating loss of $49.4 million in the third quarter of 2024, which
excludes the loss on legal settlement of $15.3 million, compared to
an adjusted operating loss of $41.5 million in the third quarter of
2023, due primarily to a decrease in net investment income, driven
by increased allocations to our lines of business.
OTHER INFORMATION
Shares
Outstanding
The Company’s weighted average number of
shares outstanding, assuming dilution, was 186.9 million for the
third quarter of 2024, compared to 197.1 million for the third
quarter of 2023. Shares outstanding totaled 184.5 million at
September 30, 2024. During the third quarter of 2024, the Company
repurchased 3.7 million shares at a total cost of $202.0
million.
Capital
Management
At September 30, 2024, 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 $1,393.0
million.
Book
Value
Book value per common share as of September
30, 2024 was $59.36, compared to $49.32 at September 30, 2023. Book
value per common share excluding AOCI as of September 30, 2024 was
$74.15, compared to $65.47 at September 30, 2023.
Effective Tax
Rate
The effective tax rate on adjusted operating
earnings was 20.7 percent in the third quarter of 2024.
Outlook
Full-year 2024 outlook of an increase in
after-tax adjusted operating income per share of 10 percent to 15
percent when comparing to full-year 2023.
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. We believe the following non-GAAP financial
measures are better performance measures and better indicators of
the revenue and profitability and underlying trends in our
business:
- After-tax adjusted operating income or loss, which excludes
investment gains or losses, amortization of the cost of
reinsurance, non-contemporaneous reinsurance, reserve assumption
updates, as well as certain other items, as applicable;
- Book value per common share, which is calculated excluding
AOCI.
Investment gains or losses primarily include realized investment
gains or losses, expected investment credit losses, and gains or
losses on derivatives. Investment gains or losses and unrealized
gains or losses on securities depend on market conditions and do
not necessarily relate to decisions regarding the underlying
business of our Company. We believe after-tax adjusted operating
income is a better performance measure and better indicator of the
profitability and underlying trends in our business. Book value per
common share excluding AOCI provides a more comparable and
consistent view of our results, as AOCI tends to fluctuate
depending on market conditions and general economic trends.
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
Accounting Standards Update 2018-12 (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, October 30, 2024, at 8:00 am (Eastern Time) to
discuss the results of operations for the third quarter of 2024.
Topics may include forward-looking information, such as the
Company’s outlook on future results, trends in operations, and
other material information.
To receive dial in information for the call, please register in
advance by using the following URL:
https://registrations.events/direct/Q4I3307929. Upon registration
you will receive a dial-in number to use to access the event. It is
recommended that you register at least 10 minutes before the start
of the event. In addition, 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 6 by using the
registration URL noted above.
In conjunction with today’s earnings announcement, the Company’s
Statistical Supplement for the third quarter of 2024 is available
on the “Investors” section of the Company’s website.
ABOUT UNUM GROUP
Unum Group (NYSE: UNM), a leading international provider of
workplace benefits and services, has been helping workers and their
families thrive for more than 175 years. Through its Unum and
Colonial Life brands, the company offers disability, life,
accident, critical illness, dental, and vision insurance; leave and
absence management support; and behavioral health services. In
2023, Unum Group reported revenues of more than $12 billion and
paid approximately $8 billion in benefits. The Fortune 500 company
is recognized as one of the World’s Most Ethical Companies by
Ethisphere®.
Visit the Unum Group newsroom
(https://www.unumgroup.com/newsroom) for more information, and
connect with us on LinkedIn
(https://www.linkedin.com/company/unum), Facebook
(https://www.facebook.com/unumbenefits/), and Instagram
(https://www.instagram.com/unumbenefits/).
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 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) a
cybersecurity attack or other security breach resulting in
compromised data or the unauthorized acquisition of confidential
data; (7) the failure of our business recovery and incident
management processes to resume our business operations in the event
of a natural catastrophe, cybersecurity attack, or other event; (8)
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; (9) increased competition from
other insurers and financial services companies due to industry
consolidation, new entrants to our markets, or other factors; (10)
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; (11) changes in our financial
strength and credit ratings; (12) actual experience in the broad
array of our products that deviates from our assumptions used in
pricing, underwriting, and reserving; (13) Our ability to hire and
retain qualified employees; (14) our ability to develop digital
capabilities or execute on our technology systems upgrades or
replacements; (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,
2023. 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
2024
2023
2024
2023
Revenue
Premium Income
$
2,628.8
$
2,525.9
$
7,866.3
$
7,494.3
Net Investment Income
527.8
526.0
1,586.4
1,565.9
Net Investment Loss
(12.9
)
(31.0
)
(24.5
)
(30.0
)
Other Income
73.3
71.6
222.5
210.6
Total Revenue
3,217.0
3,092.5
9,650.7
9,240.8
Benefits and Expenses
Policy Benefits Including Remeasurement
Loss or Gain
1,461.9
1,947.0
5,056.7
5,437.0
Commissions
315.1
289.7
947.8
869.7
Interest and Debt Expense
49.2
48.6
148.6
145.6
Deferral of Acquisition Costs
(163.3
)
(153.3
)
(495.3
)
(467.5
)
Amortization of Deferred Acquisition
Costs
133.8
129.1
387.9
358.7
Other Expenses
605.7
569.7
1,799.2
1,685.9
Total Benefits and Expenses
2,402.4
2,830.8
7,844.9
8,029.4
Income Before Income Tax
814.6
261.7
1,805.8
1,211.4
Income Tax Expense
168.9
59.7
375.4
258.2
Net Income
$
645.7
$
202.0
$
1,430.4
$
953.2
PER SHARE INFORMATION
Net Income Per Common Share
Basic
$
3.46
$
1.03
$
7.54
$
4.83
Assuming Dilution
$
3.46
$
1.02
$
7.52
$
4.81
Weighted Average Common Shares - Basic
(000s)
186,400.7
196,083.2
189,665.1
197,289.5
Weighted Average Common Shares - Assuming
Dilution (000s)
186,882.4
197,131.8
190,209.7
198,295.1
Outstanding Shares - (000s)
184,501.2
195,017.0
Reconciliation of Non-GAAP
Financial Measures
Three Months Ended September
30
2024
2023
(in millions)
per share *
(in millions)
per share *
Net Income
$
645.7
$
3.46
$
202.0
$
1.02
Excluding:
Net Investment Loss (net of tax benefit of
$3.1; $6.6)
(9.8
)
(0.05
)
(24.4
)
(0.13
)
Amortization of the Cost of Reinsurance
(net of tax benefit of $2.2; $2.4)
(8.2
)
(0.04
)
(8.7
)
(0.04
)
Non-Contemporaneous Reinsurance (net of
tax benefit of $1.2; $1.9)
(4.8
)
(0.03
)
(7.3
)
(0.04
)
Reserve Assumption Updates (net of tax
expense (benefit) of $74.8; $(37.9))
282.6
1.51
(139.3
)
(0.71
)
Loss on Legal Settlement (net of tax
benefit $3.2; $—)
(12.1
)
(0.06
)
—
—
After-tax Adjusted Operating
Income
$
398.0
$
2.13
$
381.7
$
1.94
* Assuming Dilution
September 30
2024
2023
(in millions)
per share
(in millions)
per share
Total Stockholders' Equity (Book
Value)
$
10,951.4
$
59.36
$
9,618.1
$
49.32
Excluding:
Net Unrealized Loss on Securities
(1,491.2
)
(8.08
)
(3,948.4
)
(20.25
)
Effect of Change in Discount Rate
Assumptions on the Liability for Future Policy Benefits
(527.0
)
(2.86
)
1,688.5
8.66
Net Loss on Derivatives
(108.9
)
(0.59
)
(177.7
)
(0.91
)
Subtotal
13,078.5
70.89
12,055.7
61.82
Excluding:
Foreign Currency Translation
Adjustment
(259.9
)
(1.40
)
(382.2
)
(1.95
)
Subtotal
13,338.4
72.29
12,437.9
63.77
Excluding:
Unrecognized Pension and Postretirement
Benefit Costs
(342.7
)
(1.86
)
(330.8
)
(1.70
)
Total Stockholders' Equity, Excluding
Accumulated Other Comprehensive Loss
$
13,681.1
$
74.15
$
12,768.7
$
65.47
Three Months Ended
September 30, 2024
September 30, 2023
Premium Income
Premium Income in Local
Currency1
Weighted Average Exchange
Rate2
Premium Income in Constant
Currency
Unum International
Unum UK
$
206.8
£
142.2
1.301
$
185.0
Unum Poland
39.8
zł
126.9
0.257
32.6
Total
246.6
217.6
Unum US
1,723.5
$
1,657.7
1,657.7
Colonial Life
441.9
$
431.2
431.2
Core Operations
$
2,412.0
$
2,306.5
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241029887090/en/
Media Contact: Emily Downing edowning@unum.com
Investor Relations Matt Royal
investorrelations@unum.com
Unum (NYSE:UNM)
Historical Stock Chart
From Nov 2024 to Dec 2024
Unum (NYSE:UNM)
Historical Stock Chart
From Dec 2023 to Dec 2024
