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Unum
🇺🇸 NYSE:UNM
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•
Dec 31, 2020

Unum Q4 2020 Earnings Report

Unum Group reported fourth quarter results with net income of $135.4 million and after-tax adjusted operating income of $235.3 million.

Key Takeaways

Unum Group reported a net income of $135.4 million for the fourth quarter of 2020. After-tax adjusted operating income was $235.3 million, in line with the prior outlook, despite elevated December COVID-19 related mortality levels. The company signed a Closed Block individual disability reinsurance transaction expected to free $650 million of capital, with $400 million realized in the fourth quarter.

Net income for the fourth quarter of 2020 was $135.4 million ($0.66 per diluted common share).

After-tax adjusted operating income was $235.3 million ($1.15 per diluted common share), in-line with prior outlook.

Closed Block individual disability reinsurance transaction expected to free $650 million of capital; $400 million realized in the fourth quarter.

Holding company cash of $1.5 billion; weighted average risk-based capital ratio of approximately 365 percent.

Total Revenue
$4.27B
Previous year: $3.04B
+40.8%
EPS
$1.15
Previous year: $1.41
-18.4%
Gross Profit
$13.1B
Previous year: $11.7B
+11.9%
Cash and Equivalents
$1.51B
Previous year: $84.1M
+1697.9%
Free Cash Flow
-$701M
Previous year: $441M
-258.8%
Total Assets
$70.6B
Previous year: $67B
+5.4%

Unum

Unum

Unum Revenue by Segment

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
  • Strong balance sheet and liquidity
  • Weighted average risk-based capital ratio of approximately 365 percent
  • Leader in employee benefits

Challenges Ahead

  • Modest decline in after-tax adjusted operating income per share for full-year 2021 compared to full-year 2020
  • Based on the year-end 2020 resurgence in COVID-19 related mortality and infection rates
  • Expectation for higher mortality rates in the first half of 2021
  • Elevated mortality rates from COVID-19
  • Challenging employment picture to persist in the near term

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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