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Mar 31, 2021
Unum Q1 2021 Earnings Report
Unum Group reported first quarter 2021 results, reflecting continued elevated mortality and encouraging trends in premium growth.
Key Takeaways
Unum Group reported a net income of $153.0 million for Q1 2021, with an after-tax adjusted operating income of $212.0 million. The results were influenced by elevated mortality and positive trends in premium growth and macroeconomic conditions.
Net income for Q1 2021 was $153.0 million ($0.75 per diluted common share); after-tax adjusted operating income was $212.0 million ($1.04 per diluted common share).
Results reflect continued elevated mortality, which improved through the quarter, as well as encouraging trends in premium growth, persistency, and macro-economic conditions.
Strong balance sheet and liquidity with holding company cash of $1.7 billion and weighted average risk-based capital ratio of approximately 370 percent; successful completion of the second phase of the Closed Block individual disability reinsurance transaction.
Book value per common share of $51.77 grew 7.4 percent over the year-ago quarter.
Unum
Unum
Unum Revenue by Segment
Revenue by Segment
Unum US Revenue
CapyFin.comUnum International Revenue
CapyFin.comColonial Life Revenue
CapyFin.com Forward Guidance
The Company expects a modest decline in after-tax adjusted operating income per share for full-year 2021 compared to full-year 2020. The Company also anticipates a strong recovery in after-tax adjusted operating income per share in the second half of 2021 as the expected impacts of the COVID-19 pandemic subside.
Positive Outlook
- Strong recovery in after-tax adjusted operating income per share in the second half of 2021
- Expected impacts of the COVID-19 pandemic subside
- Market leadership
- Financial underpinnings
- Drive growth as the recovery builds in the second half of the year
Challenges Ahead
- Modest decline in after-tax adjusted operating income per share for full-year 2021 compared to full-year 2020.
- Impact of the COVID-19 pandemic
- Sustained periods of low interest rates
- Fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income