CHATTANOOGA, Tenn. (AP) — Unum Group, a provider of disability, life and accidental death insurance, said profit in the second quarter increased nearly 10 percent mostly due to lower investment losses than a year ago.
The Chattanooga, Tenn.-based company posted net income of $229.8 million, or 75 cents per share, compared with $209.7 million, or 63 cents per share, a year ago.
Operating revenue edged up to $2.57 billion from $2.54 billion a year ago.
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Analysts surveyed by FactSet expected 72 cents per share on revenue of $2.56 billion, on average.
The results included investment losses of $2.2 million, compared with $18.9 million a year ago. The investment losses included $3.1 million from changes in the value of derivatives in an insurance contract, compared with a loss of $15.3 million a year earlier.
Excluding the investment losses, the company earned $232 million, or 75 cents per share, compared with $228.6 million or 69 cents per share.
Earnings per share benefited from a lower number of shares outstanding — down nearly 8 percent year over year — as Unum bought back its stock. During the second quarter, the company repurchased about 5.7 million shares for $146.1 million.
The company's U.S. business segment posted operating income of $218.1 million, up 1 percent from the year-ago quarter. Premium income was essentially flat, at $1.22 billion.
Unum U.K.'s operating income rose 3.4 percent to $54.7 million. Premium income rose nearly 15 percent to $175.8 million, and sales fell 27.7 percent.
The company's Colonial Life division reported a 1.8 percent increase in operating income to $75.2 million, as premium income increased 5.3 percent and sales increased 2.1 percent.
Meanwhile, the corporate and other segment reported an operating loss of $16.8 million, compared with a loss of $17.6 million in the year-ago quarter.
Shares of the company fell 63 cents, or 2.6 percent, to close at $23.59, then added 16 cents to $23.75 in after-hours trading.
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