Unum profit falls in 4th quarter due to $167.6 Million in investment losses
NEW YORK, Feb 3, 2009— Unum Group said on Tuesday that net income fell sharply in the fourth quarter, hurt by investment losses, but operating earnings beat Wall Street expectations by a penny.
Unum, the largest long-term disability benefit insurer in the United States and Britain, said net earnings fell 74 percent to $41.8 million, or 13 cents a share, from $160.5 million, or 44 cents a share, in the year-earlier quarter.
Chattanooga, Tennessee-based Unum said it had $167.6 million in net realized investment losses, largely the result of writing down impaired investments.
Earnings from continuing operations, which analysts use to measure performance, were $209.4 million, or 63 cents a share, compared with $213.1 million, or 59 cents a share a year earlier.
Analysts, on average, had expected earnings of 62 cents a share, according to Reuters Estimates.
The company expects its earnings from continuing operations to be between $2.45 and $2.55 a share in 2009, shy of analysts’ average expectation of $2.63 a share.
The company said it is looking for a new chief financial officer to replace Robert Greving, who is retiring later this year, according to a separate statement.
Gregory Dell, a disability income attorney with Attorneys Dell & Schaefer stated, “despite Unum’s recent financial performance they have been actively pursuing lump-sum buyouts from individuals that are currently collecting long-term disability benefits.”
About the author: Gregory Michael Dell is an attorney and managing partner of the disability income division of Attorneys Dell & Schaefer. Mr. Dell and his team of disability lawyers have assisted thousands of long-term disability claimants with their claims against every major disability insurance company. Attorney Gregory Dell is a nationally recognized disability insurance attorney and the author of a long-term disability insurance law book published by Thomson Reuters, which is a legal reference for attorneys and judges. For a free consultation, please call 800-828-7583 or use our contact page.
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