In Annual Meeting Remarks, Says Company is Well-Positioned for the
Future
COLUMBIA, S.C.--(BUSINESS WIRE)--
Unum Group (NYSE:UNM) CEO Thomas R. Watjen told shareholders at the
company’s annual meeting here today that the company is well-positioned
operationally and financially, and that it remains a strong franchise
poised to serve the changing needs of its customers.
“We’ve delivered solid results over the last several years in what has
been a challenging business and economic environment, and our market
leadership positions remain intact, our financial position strong, and
our company’s commitment to excellence continues to be recognized by our
key stakeholders,” said Watjen. “The foundational principles that we
laid out more than six years ago have served us well and also provide a
roadmap for continued success in the future.”
He pointed to the company’s significant operating earnings growth since
2005 and its current capital position as evidence that its focus on
profitability and financial flexibility is producing results. Pre-tax
operating income for the company’s three primary businesses rose to a
record $1.3 billion in 2009.
He added that Unum continues to be a market leader in making disability,
life, accident and critical illness benefits accessible in the workplace
throughout the U.S. and the U.K. The Fortune 250 employee benefits
provider paid nearly $6 billion in benefits last year to individuals and
families impacted by life-changing events.
Watjen said that employer-sponsored benefits represent the single most
effective way to provide workers with access to the information and
options they need for their financial security, and that benefits
providers should continue to work together to educate policymakers on
the role the industry plays in protecting people’s financial well-being.
“Middle and lower income workers face dangerous gaps in their financial
safety net, which can place further pressure on government resources
already facing funding and budgetary pressures,” he stated.
“Employer-sponsored benefits are one of the primary backstops against
financial catastrophe for many of these workers, and we at Unum are
advocates for continued cooperation between the public and private
sectors to address this critical need.”
Watjen praised the company’s employees throughout the U.S. and the U.K.
for their role in Unum’s success. “The improvements we’ve made haven’t
come easily, and they would not have been possible without the hard work
and support of our 10,000 dedicated employees,” he said. “I’m extremely
thankful for what they have done – and continue to do – to position us
for a bright future.”
Separately, the company announced that its Board of Directors authorized
an increase of 12.1 percent in the quarterly dividend paid on its common
stock and approved a total of up to $500 million to repurchase the
company’s outstanding common stock over the next 12 months.
“These actions represent a balanced approach to deploying our excess
capital in a way that creates value for our shareholders, yet also
allows us to continue to invest in our businesses and capitalize on
market opportunities as they arise,” said Watjen.
Also at today’s meeting, Unum shareholders elected four directors to
terms expiring in 2013. They are: E. Michael Caulfield, retired
president of Mercer Human Resource Consulting; Ronald E. Goldsberry,
independent contractor with Deloitte Consulting and retired chairman of
OnStation Corporation; Kevin T. Kabat, president, chief executive
officer and chairman of Fifth Third Bancorp; and Michael J. Passarella,
retired audit partner with PricewaterhouseCoopers LLP.
ABOUT UNUM
Unum (www.unum.com)
is one of the leading providers of employee benefits products and
services and the largest provider of group and individual disability
insurance in the United States and the United Kingdom.
SAFE HARBOR STATEMENT
Certain information in this press release constitutes "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are those not based on
historical information, but rather relate to future operations,
strategies, financial results, or other developments and speak only as
of the date made. Examples of such forward-looking statements include,
but are not limited to, references to the amount and timing of a
dividend increase and/or share repurchases. These forward-looking
statements are subject to numerous assumptions, risks, and
uncertainties, many of which are beyond our control. The following
factors, in addition to other factors mentioned from time to time, may
cause actual results to differ materially from those contemplated by the
forward-looking statements: (1) unfavorable economic or business
conditions, both domestic and foreign, including the continued financial
market disruption; (2) legislative, regulatory, or tax changes, both
domestic and foreign, including the effect of potential legislation and
increased regulation in the current political environment; (3) sustained
periods of low interest rates; (4) changes in claim incidence and
recovery rates due to, among other factors, the rate of unemployment and
consumer confidence, the emergence of new diseases, epidemics, or
pandemics, new trends and developments in medical treatments, and the
effectiveness of claims management operations; (5) fluctuation in
insurance reserve liabilities; (6) investment results, including but not
limited to, realized investment losses resulting from impairments that
differ from our assumptions and historical experience; (7) changes in
interest rates, credit spreads, and securities prices; (8) increased
competition from other insurers and financial services companies due to
industry consolidation or other factors; (9) changes in our financial
strength and credit ratings; (10) rating agency actions, state insurance
department market conduct examinations and other inquiries, other
governmental investigations and actions, and negative media attention;
(11) effectiveness in supporting new product offerings and providing
customer service; (12) actual experience in pricing, underwriting, and
reserving that deviates from our assumptions; (13) lower than projected
persistency and lower sales growth; (14) changes in accounting
standards, practices, or policies; (15) effectiveness of our risk
management program; (16) the level and results of litigation; (17)
currency exchange rates; (18) ability of our subsidiaries to pay
dividends as a result of regulatory restrictions; (19) ability and
willingness of reinsurers to meet their obligations; (20) changes in
assumptions related to intangible assets such as deferred acquisition
costs, value of business acquired, and goodwill; (21) events or
consequences relating to terrorism and acts of war, both domestic and
foreign; (22) ability to recover our systems and information in the
event of a disaster or unanticipated event; (23) a change in the market
for our stock so that repurchases are no longer in our best interests;
and (24) an unexpected need for capital that requires us to divert funds
from share repurchases or prevents us from increasing the dividend.
For further information about risks and uncertainties which could cause
actual results to differ from those contained in the forward-looking
statements, see Part I, Item 1A of our annual report on Form 10-K for
the year ended December 31, 2009 and any subsequently filed Forms 10-Q.
The forward-looking statements in this press release are being made as
of the date of this press release, and the Company expressly disclaims
any obligation to update or revise any forward-looking statement
contained herein, even if made available on our website or otherwise.
Source: Unum Group
Contact:
Unum Group
INVESTORS:
Thomas A. H. White, 423-294-8996
or
MEDIA:
Jim
Sabourin, 866-750-8686 or 423-294-6300