- Net income of $392.9 million
($1.98 per diluted common share) for
the second quarter of 2023; after-tax adjusted operating income was
$408.8 million ($2.06 per diluted common share).
- Results reflect the continuation of positive underlying trends,
particularly in our disability products, and a favorable operating
environment.
- Strong top-line trends with core operations sales growth of
19.5 percent and premium growth of 4.6 percent on a constant
currency basis.
- Robust balance sheet and liquidity with holding company
liquidity of $1.1 billion and
weighted average risk-based capital ratio of approximately 450
percent.
- Book value per common share of $47.06 grew 21.0 percent over the year-ago
quarter; book value per common share excluding accumulated other
comprehensive income (AOCI) of $64.66
grew 11.6 percent over the year-ago quarter.
CHATTANOOGA, Tenn., Aug. 1, 2023
/PRNewswire/ -- Unum Group (NYSE: UNM) today reported net income of
$392.9 million ($1.98 per diluted common share) for the second
quarter of 2023, compared to net income of $367.3 million ($1.81 per diluted common share) for the second
quarter of 2022.
Included in net income for the second 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 $7.9 million ($0.04
per diluted common share), and a net after-tax investment gain on
the Company's investment portfolio of $0.7
million (de minimis amount per diluted common share).
Included in net income for the second quarter of 2022 are the
after-tax amortization of the cost of reinsurance of $10.5 million ($0.05 per diluted common share), the after-tax
impact of non-contemporaneous reinsurance of $7.9 million ($0.04
per diluted common share), and a net after-tax investment loss on
the Company's investment portfolio of $3.1
million ($0.02 per diluted
common share). Excluding the items above, after-tax adjusted
operating income was $408.8 million
($2.06 per diluted common share) in
the second quarter of 2023, compared to $388.8 million ($1.92 per diluted common share) in the second
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.
"We saw excellent enterprise-wide performance continue this
quarter, including exceptional results within our group disability
business and solid margins on a growing premium base," said
Richard P. McKenney, president and
chief executive officer. "The macroeconomic environment remains
favorable for our business and our strong sales performance
reflects employers' growing recognition of the differentiation of
our offerings. We are well-positioned for growth at the higher end
of our expected earnings range and continue to operate from a
robust capital position, providing the flexibility to execute our
growth strategy and return capital to shareholders."
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,
and the impact of non-contemporaneous reinsurance. Investment
gains or losses primarily include realized investment gains or
losses, expected investment credit losses, and gains or losses on
derivatives. 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 or net
income.
Unum US Segment
Unum US reported adjusted operating income of $343.1 million in the second quarter of 2023, an
increase of 17.5 percent from $291.9
million in the second quarter of 2022. Premium income
increased 4.5 percent to $1,641.4
million in the second quarter of 2023, compared to
$1,571.0 million in the second
quarter of 2022. Net investment income decreased 5.8 percent
to $158.0 million in the second
quarter of 2023, compared to $167.8
million in the second quarter of 2022.
Within the Unum US operating segment, the group disability line
of business reported a 51.5 percent increase in adjusted operating
income to $159.8 million in the
second quarter of 2023, compared to $105.5
million in the second quarter of 2022. Premium income
for the group disability line of business increased 9.3 percent to
$772.3 million in the second quarter
of 2023, compared to $706.5 million
in the second quarter of 2022, driven by in-force block growth and
higher sales, partially offset by lower persistency in the group
short-term disability product line. Net investment income
decreased 7.3 percent to $81.1
million in the second quarter of 2023, compared to
$87.5 million in the second quarter
of 2022, due to a decrease in the level of invested assets and
lower miscellaneous investment income. The benefit ratio for
the second quarter of 2023 was 59.4 percent, compared to 66.7
percent in the second quarter of 2022, due to 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 $65.6 million
in the second quarter of 2023, an increase of 3.8 percent from
$63.2 million in the second quarter
of 2022. Group short-term disability sales were $49.6 million in the second quarter of 2023, an
increase of 36.6 percent from $36.3
million in the second quarter of 2022. Persistency in
the group long-term disability product line was 91.0 percent for
the first half of 2023, compared to 90.9 percent for the first half
of 2022. Persistency in the group short-term disability
product line was 88.6 percent for the first half of 2023, compared
to 89.2 percent for the first half of 2022.
The group life and accidental death and dismemberment line of
business reported a 20.2 percent decrease in adjusted operating
income to $51.6 million in the second
quarter of 2023, compared to $64.7
million in the second quarter of 2022. Premium income
for this line of business was $461.8
million in the second quarter of 2023, which was generally
consistent to the $463.4 million in
the second quarter of 2022. Net investment income decreased
12.0 percent to $21.9 million in the
second quarter of 2023, compared to $24.9
million in the second quarter of 2022, due primarily to a
decrease in the level of invested assets and lower miscellaneous
investment income. The benefit ratio in the second quarter of
2023 was 73.0 percent, compared to 70.8 percent in the second
quarter of 2022, due primarily to higher incidence in both the
group life and accidental death and dismemberment product lines,
partially offset by lower average claim size in the group life
product line. Sales of group life and accidental death and
dismemberment products increased 15.1 percent in the second quarter
of 2023 to $88.6 million, compared to
$77.0 million in the second quarter
of 2022. Persistency in the group life product line was 89.3
percent for the first half of 2023, compared to 89.4 percent for
the first half of 2022. Persistency in the accidental death
and dismemberment product line was 88.1 percent for the first half
of 2023, compared to 88.2 percent for the first half of 2022.
The supplemental and voluntary line of business reported an
increase of 8.2 percent in adjusted operating income to
$131.7 million in the second quarter
of 2023, compared to $121.7 million
in the second quarter of 2022. Premium income for the
supplemental and voluntary line of business increased 1.5 percent
to $407.3 million in the second
quarter of 2023, compared to $401.1
million in the second quarter of 2022, with higher sales in
the individual disability product line, partially offset by lower
persistency in the voluntary benefits and dental and vision product
lines. Net investment income decreased 0.7 percent to
$55.0 million in the second quarter
of 2023, compared to $55.4 million in
the second 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 was 39.2 percent in the second quarter of 2023, compared to
42.4 percent in the second quarter of 2022, due to favorable
reserve development and increased lapses. The benefit ratio
for the individual disability product line was 42.1 percent for the
second quarter of 2023, compared to 50.3 percent in the second
quarter of 2022, due primarily to higher mortality. The
benefit ratio for the dental and vision product line was 76.2
percent for the second quarter of 2023, compared to 72.9 percent in
the second quarter of 2022, due primarily to higher average claim
size and higher claim incidence. Relative to the second
quarter of 2022, sales in the voluntary benefits product line
increased 15.9 percent in the second quarter of 2023 to
$62.6 million. Sales in the
individual disability product line increased 53.5 percent in the
second quarter of 2023 to $28.7
million. Sales in the dental and vision product line
increased 51.2 percent in the second quarter of 2023 to
$19.5 million. Persistency in
the voluntary benefits product line was 74.4 percent for the first
half of 2023, compared to 75.8 percent for the first half of
2022. Persistency in the individual disability product line
was 89.3 percent for the first half of 2023, compared to 89.4
percent for the first half of 2022. Persistency in the dental
and vision product line was 76.1 percent for the first half of
2023, compared to 82.0 percent for the first half of
2022.
Unum International Segment
The Unum International segment reported adjusted operating
income of $43.5 million in the second
quarter of 2023, an increase of 54.8 percent from $28.1 million in the second quarter of
2022. Premium income increased to $207.9 million in the second quarter of 2023,
compared to $179.4 million in the
second quarter of 2022. Net investment income decreased
9.8 percent to $45.8 million in
the second quarter of 2023, compared to $50.8 million in the second quarter of
2022. Sales increased 69.3 percent to $60.6 million in the second quarter of 2023,
compared to $35.8 million in the
second quarter of 2022.
The Unum UK line of business reported adjusted operating income,
in local currency, of £34.3 million in the second quarter of 2023,
an increase of 59.5 percent from £21.5 million in the second
quarter of 2022. Premium income was £143.1 million in the
second quarter of 2023, an increase of 14.5 percent from
£125.0 million in the second quarter of 2022, due to in-force block
growth and higher sales. Net investment income was £34.5
million in the second quarter of 2023, a decrease of 12.0 percent
from £39.2 million in the second quarter of 2022, due to lower
investment income from inflation index-linked bonds. The
benefit ratio in the second quarter of 2023 was 72.3 percent,
compared to 87.9 percent in the second quarter of 2022, due to
favorable claim resolutions primarily driven by higher mortality
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 mortality in the group life
product line. Sales increased 64.3 percent to £41.9 million
in the second quarter of 2023, compared to £25.5 million in the
second quarter of 2022. Persistency in the group long-term
disability product line was 90.9 percent for the first half of
2023, compared to 87.4 percent for the first half of 2022.
Persistency in the group life product line was 82.6 percent for the
first half of 2023, compared to 88.1 percent for the first half of
2022. Persistency in the supplemental product line was 90.0
percent for the first half of 2023, compared to 91.5 percent for
the first half of 2022.
Colonial Life Segment
Colonial Life reported adjusted operating income of $115.5 million in the second quarter of 2023, a
19.6 percent increase compared to $96.6
million in the second quarter of 2022. Premium income
increased to $430.6 million in the
second quarter of 2023, compared to $427.6
million in the second quarter of 2022, due to higher sales
in prior periods, partially offset by lower persistency. Net
investment income decreased to $38.0
million in the second quarter of 2023, compared to
$38.7 million in the second quarter
of 2022, due primarily to lower miscellaneous investment
income. The benefit ratio was 48.3 percent in the second
quarter of 2023, compared to 53.8 percent in the second quarter of
2022, and was favorable across all product lines primarily due to
lower claim costs in the accident, sickness and disability and
cancer and critical illness product lines. Sales increased
3.2 percent to $122.0 million in the
second quarter of 2023, compared to $118.2
million in the second quarter of 2022. Persistency in
the Colonial Life segment was 77.5 percent for the first half of
2023, compared to 78.6 percent for the first half of 2022.
Closed Block Segment
The Closed Block segment reported adjusted operating income of
$51.2 million in the second quarter
of 2023, which excludes the amortization of cost of reinsurance of
$11.0 million and the impact of
non-contemporaneous reinsurance of $9.9
million related to the Closed Block individual disability
reinsurance transaction, compared to $86.9
million in the second quarter of 2022, which excludes the
amortization of cost of reinsurance of $13.3
million and the impact of non-contemporaneous reinsurance of
$10.0 million related to the Closed
Block individual disability reinsurance transaction. Premium
income for this segment is largely driven by our long-term care
product line, and in the second quarter of 2023, premium income for
long-term care was generally consistent with the same period of
2022. Net investment income decreased 9.5 percent to
$263.9 million in the second quarter
of 2023, compared to $291.5 million
in the second quarter of 2022, due to lower miscellaneous
investment income, primarily related to smaller increases in the
net asset values on our private equity partnerships, partially
offset by an increase in the level of invested assets.
The interest adjusted loss ratio for the long-term care line of
business was 92.4 percent in the second quarter of 2023, compared
to an interest adjusted loss ratio of 84.9 percent in the second
quarter of 2022, driven primarily by higher claim incidence.
The interest adjusted loss ratio for long-term care for the rolling
twelve months ended June 30, 2023 was 86.6 percent.
Corporate Segment
The Corporate segment reported an adjusted operating loss of
$34.9 million in the second quarter
of 2023, compared to an adjusted operating loss of $36.9 million in the second 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 198.1 million for the second quarter of
2023, compared to 202.4 million for the second quarter of
2022. Shares outstanding totaled 196.5 million at
June 30, 2023. During the second quarter of 2023, the
Company repurchased 1.1 million shares at a total cost of
$47.0 million.
Capital Management
At June 30, 2023, the weighted average risk-based capital
ratio for the Company's traditional U.S. insurance companies was
approximately 450 percent, and the holding companies had available
holding company liquidity of $1,072.0
million.
Book Value
Book value per common share as of June 30, 2023 was
$47.06, compared to $38.89 at June 30, 2022. Book value
per common share excluding AOCI as of June 30, 2023 was
$64.66, compared to $57.92 at June 30, 2022.
Effective Tax Rate
The effective tax rate on adjusted operating earnings was 21.1
percent in the second 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 historically reported 2022 results, or an increase of 10
percent to 15 percent on a consistent basis under ASU 2018-12.
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, and the impact of non-contemporaneous
reinsurance 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.
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, August 2, 2023, at 9:00 a.m. (Eastern Time) to discuss the results
of operations for the second 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, August 9
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 second 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 June
30
|
|
Six Months Ended June
30
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
|
|
|
|
Premium
Income
|
$
2,509.1
|
|
$
2,416.0
|
|
$
4,968.4
|
|
$
4,817.4
|
Net Investment
Income
|
531.1
|
|
559.0
|
|
1,039.9
|
|
1,086.2
|
Net Investment Gain
(Loss)
|
0.9
|
|
(4.1)
|
|
1.0
|
|
(17.9)
|
Other Income
|
71.1
|
|
68.7
|
|
139.0
|
|
134.5
|
Total
Revenue
|
3,112.2
|
|
3,039.6
|
|
6,148.3
|
|
6,020.2
|
|
|
|
|
|
|
|
|
Benefits and
Expenses
|
|
|
|
|
|
|
|
Policy Benefits
Including Remeasurement Loss or
Gain
|
1,753.6
|
|
1,800.1
|
|
3,490.0
|
|
3,714.3
|
Commissions
|
286.1
|
|
274.4
|
|
580.0
|
|
547.6
|
Interest and Debt
Expense
|
48.9
|
|
47.4
|
|
97.0
|
|
94.3
|
Deferral of Acquisition
Costs
|
(156.5)
|
|
(137.9)
|
|
(314.2)
|
|
(279.7)
|
Amortization of
Deferred Acquisition Costs
|
113.7
|
|
106.5
|
|
229.6
|
|
210.1
|
Other
Expenses
|
568.0
|
|
509.9
|
|
1,116.2
|
|
998.7
|
Total Benefits and
Expenses
|
2,613.8
|
|
2,600.4
|
|
5,198.6
|
|
5,285.3
|
|
|
|
|
|
|
|
|
Income Before Income
Tax
|
498.4
|
|
439.2
|
|
949.7
|
|
734.9
|
Income Tax
Expense
|
105.5
|
|
71.9
|
|
198.5
|
|
127.2
|
|
|
|
|
|
|
|
|
Net
Income
|
$
392.9
|
|
$
367.3
|
|
$
751.2
|
|
$
607.7
|
|
|
|
|
|
|
|
|
PER SHARE
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Common
Share
|
|
|
|
|
|
|
|
Basic
|
$
1.99
|
|
$
1.83
|
|
$
3.80
|
|
$
3.01
|
Assuming
Dilution
|
$
1.98
|
|
$
1.81
|
|
$
3.78
|
|
$
2.99
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares - Basic (000s)
|
197,180.4
|
|
201,151.7
|
|
197,641.3
|
|
201,888.8
|
Weighted Average Common
Shares - Assuming
Dilution (000s)
|
198,136.5
|
|
202,431.7
|
|
198,823.8
|
|
202,966.5
|
Outstanding Shares -
(000s)
|
|
|
|
|
196,459.0
|
|
200,233.4
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
Three Months Ended June
30
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
per share *
|
|
(in
millions)
|
|
per share *
|
Net
Income
|
$
392.9
|
|
$
1.98
|
|
$
367.3
|
|
$
1.81
|
Excluding:
|
|
|
|
|
|
|
|
Net Investment Gain
(Loss), Other (net of tax
expense (benefit) of $0.2; $(1.0))
|
0.7
|
|
—
|
|
(3.1)
|
|
(0.02)
|
Amortization of the
Cost of Reinsurance (net of tax
benefit of $2.3; $2.8)
|
(8.7)
|
|
(0.04)
|
|
(10.5)
|
|
(0.05)
|
Non-Contemporaneous
Reinsurance (net of tax
benefit of $2.0; $2.1)
|
(7.9)
|
|
(0.04)
|
|
(7.9)
|
|
(0.04)
|
After-tax Adjusted
Operating Income
|
$
408.8
|
|
$
2.06
|
|
$
388.8
|
|
$
1.92
|
|
|
|
|
|
|
|
|
* Assuming
Dilution
|
|
|
|
|
|
|
|
|
June 30
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
per share
|
|
(in
millions)
|
|
per share
|
Total Stockholders'
Equity (Book Value)
|
$
9,245.9
|
|
$
47.06
|
|
$
7,787.8
|
|
$
38.89
|
Excluding:
|
|
|
|
|
|
|
|
Net Unrealized Loss on
Securities
|
(2,762.6)
|
|
(14.06)
|
|
(1,560.4)
|
|
(7.79)
|
Effect of Change in
Discount Rate Assumptions on the
Liability for Future Policy Benefits
|
0.1
|
|
—
|
|
(1,541.2)
|
|
(7.70)
|
Net Unrealized Gain
(Loss) on Hedges
|
(33.3)
|
|
(0.17)
|
|
46.4
|
|
0.23
|
Subtotal
|
12,041.7
|
|
61.29
|
|
10,843.0
|
|
54.15
|
Excluding:
|
|
|
|
|
|
|
|
Foreign Currency
Translation Adjustment
|
(327.1)
|
|
(1.67)
|
|
(367.5)
|
|
(1.84)
|
Subtotal
|
12,368.8
|
|
62.96
|
|
11,210.5
|
|
55.99
|
Excluding:
|
|
|
|
|
|
|
|
Unrecognized Pension
and Postretirement Benefit
Costs
|
(334.7)
|
|
(1.70)
|
|
(386.8)
|
|
(1.93)
|
Total Stockholders'
Equity, Excluding Accumulated
Other Comprehensive Loss
|
$
12,703.5
|
|
$
64.66
|
|
$
11,597.3
|
|
$
57.92
|
|
Three Months
Ended
|
|
June 30,
2023
|
|
June 30,
2022
|
|
Premium
Income
|
|
Premium Income
in Local
Currency1
|
|
Weighted Average
Exchange Rate2
|
|
Premium Income
in Constant
Currency
|
|
|
|
|
|
|
|
|
Unum
International
|
|
|
|
|
|
|
|
Unum UK
|
$
179.3
|
|
£
125.0
|
|
1.253
|
|
$
156.6
|
Unum Poland
|
28.6
|
|
zł
97.6
|
|
0.240
|
|
23.4
|
Total
|
207.9
|
|
|
|
|
|
180.0
|
Unum US
|
1,641.4
|
|
$
1,571.0
|
|
|
|
1,571.0
|
Colonial
Life
|
430.6
|
|
$
427.6
|
|
|
|
427.6
|
Core
Operations
|
$
2,279.9
|
|
|
|
|
|
$
2,178.6
|
|
1Premium
income shown in millions of pounds for Unum UK, millions of zlotys
for Unum Poland, and 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