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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.
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
- 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