Unum Group on Tuesday posted higher after-tax adjusted operating income for the second quarter that was driven by growth in premium income across its core business segments and an improving trend in coronavirus-related mortality impacts.
The Chattanooga-based insurer reported operating income of $386.6 million, or $1.91 per common share, in the quarter, compared to $286.2 million, or $1.39 per common share, in the second quarter of 2021.
Richard P. McKenney, Unum’s president and chief executive officer, said in a statement after the close of the stock markets that the results were helped by premium income growth and a positive benefits experience.
“The current business environment remains favorable, and our capital strength provides continued financial flexibility,” he said. “These factors, combined with our team’s consistent execution, enable us to increase our outlook for growth in 2022.”
The provider of disability insurance and other volunteer benefits reported that full-year 2022 after-tax adjusted operating income per share is now expected to grow 40% to 45% relative to full-year 2021. That’s compared to the previous outlook of an increase of 15% to 20%.
Unum’s earnings of $1.91 per share beat the consensus estimate of $1.22 per share, according to Yahoo Finance.
The company’s stock closed at $31.36 per share, down 56 cents, or 1.75%, on the New York Stock Exchange on Tuesday.
The company that employs nearly 3,000 people in Chattanooga reported second quarter net income of $370.4 million, or $1.83 per common share, versus $182.9 million, or 89 cents per common share for the year-ago quarter.
The insurer’s Unum US segment reported adjusted operating income of $295.4 million in the second quarter, an increase of 64.8% from $179.3 million in the second quarter of 2021. Premium income increased 3.3% in the second quarter of 2022, according to the company.
Unum’s International segment posted adjusted operating income of $24.9 million in the second quarter, up 0.4% from $24.8 million in the same quarter a year ago. Premium income decreased 2.2% to $179.4 million in the second quarter, compared to $183.5 million in the second quarter of 2021, the company reported.
— Compiled by Mike Pare
.
