CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
Unum Group (NYSE:UNM) announced today that its Board of Directors
authorized an increase of 12.1 percent in the quarterly dividend paid on
its common stock. The new quarterly dividend rate of $0.0925 per common
share will be effective with the dividend expected to be paid in the
third quarter of 2010.
“Our consistent operating performance and strong capital position have
positioned us well to again increase our common stock dividend,” said
Thomas R. Watjen, president and chief executive officer. “This action,
along with today’s decision by our Board to authorize the repurchase of
$500 million of our common stock, represents 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.”
As a result of today’s announcements, the company is adjusting its
guidance for year-end 2010 holding company cash and marketable
securities to be in excess of $500 million, but continues to expect to
close 2010 with weighted average risk-based capital levels of
approximately 375 percent to 400 percent at its traditional U.S.
insurance subsidiaries.
The company had previously raised its quarterly dividend 10 percent with
the dividend paid in the third quarter of 2009 and completed a $700
million share repurchase in 2008.
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 and expected capital levels.
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