What You Need to Know
U.S. group life and AD&D premium revenue fell a little.
Benefit spending at the unit increased by $126 million.
The unit’s benefit spending was 39% higher than in the first quarter of 2020.
Unum Group executives spent their company’s latest earnings call giving securities analysts a sobering look at what COVID-19 did to the people of the United States in the first quarter.
Unum is a major provider of group life insurance, group disability insurance and worker-paid insurance products in the United States and the United Kingdom.
Unum turned a profit in the first quarter, and company executives said they expect vaccines to help reduce the number of pandemic-related U.S. deaths to fewer than 60,000 in the second quarter, from about 200,000 in the first quarter.
The company measures performance by segment.
The Unum U.S. segment reported adjusted operating income of $115.7 million in the first quarter of 2021, a decrease of 55.8% from $261.8 million in the first quarter of 2020.
The Unum International segment reported adjusted operating income of $26.4 million in the first quarter of 2021, an increase of 36.1% from $19.4 million in the first quarter of 2020.
The Colonial life segment reported a 9.6% decrease in adjusted operating income to $73.3 million in the first quarter of 2021, compared to $81.1 million in the first quarter of 2020.
The closed block segment reported adjusted operating income of $97 million in the first quarter of 2021, which excludes the impacts from the second phase of the closed block individual disability reinsurance transaction of $139.3 million and the amortization of cost of reinsurance related to the closed block individual disability reinsurance transaction of $20 million, compared to $29.7 mill
Mayor Kelly Backs Chamber s Pledge For Racial Equity Thursday, May 6, 2021 - by Joseph Dycus - photo by Joseph Dycus - photo by Joseph Dycus Mayor Tim Kelly, the Chamber of Commerce, and a variety of local CEO s announced their new CEO Pledge for Racial Equity at a press conference on Thursday. The mayor and other business leaders present pledged they will make a commitment to increasing diversity both in the workplace and in the community as a whole. Although some of us are new to this work, the work is not new at all, Mayor Kelly said. We stand on the foundation of civil rights leaders whose determination, hope, and sacrifices allow us to be here today to carry that commitment forward.
The global pandemic made 2020 a very tough one for
Unum Group (NYSE:UNM). The life insurer struggled from increased deaths from the coronavirus combined with high levels of unemployment, which hurt its sales of employee benefits. The company s earnings suffered as a result, leading to the insurer s stock price becoming heavily discounted.
Unum s management sees short-term pain continuing in the months ahead as it continues to deal with the effects of the pandemic. However, with the employment situation improving and vaccine distributions underway, management has good reason to be optimistic about the second half of this year and beyond.
With that being said, is Unum Group a good value stock to add to your portfolio?