Unum Group on Tuesday reported higher after-tax adjusted operating profit for the second quarter, thanks to growth in premium income in its main 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 with $286.2 million, or $1.39 per share. ordinary, in the second quarter of 2021.
Richard P. McKenney, president and chief executive of Unum, said in a statement after the close of trading that results were helped by growth in premium income and a positive employee benefits experience.
“The current business environment remains supportive, and our capital strength provides continued financial flexibility,” he said. “These factors, combined with the consistent execution of our team, allow us to increase our growth prospects in 2022.”
The provider of disability insurance and other voluntary benefits has reported that adjusted after-tax operating profit per share for the full year 2022 is now expected to increase 40% to 45% from the full year 2021. This is compared to the previous outlook of a 15% to 20% increase.
Unum’s earnings of $1.91 per share beat the consensus estimate of $1.22 per share, according to Yahoo Finance.
Shares of the company closed at $31.36 per share, down 56 cents, or 1.75%, on the New York Stock Exchange on Tuesday.
The company, which 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 quarter of the previous year.
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 rose 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 fell 2.2% to $179.4 million in the second quarter from $183.5 million in the second quarter of 2021, the company said.
— Compiled by Mike Pare