CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
Unum Group (NYSE: UNM) announced today that it entered into an
accelerated share repurchase agreement with Goldman, Sachs & Co. to
repurchase $200 million of its outstanding common stock. The repurchase
follows the recently announced authorization by Unum Group’s Board of
Directors to repurchase up to an additional $1 billion of the company’s
common stock and is a component of Unum Group’s overall capital
management strategy, as outlined in November 2010.
The total number of shares ultimately repurchased under the agreement
will be determined at the settlement of the transaction. Under the terms
of the repurchase agreement, Unum Group may receive, or be required to
deliver, an additional number of shares of common stock based on the
volume weighted average price of Unum Group common stock during the term
of the agreement. Any adjustment with respect to the Goldman, Sachs &
Co.’s obligation to deliver additional shares will be settled in shares
of Unum Group common stock. Any adjustment payable to Goldman, Sachs &
Co. will be settled either in cash or common stock. Unum Group expects
the settlement of the transaction to occur on or before the termination
date of the agreement, scheduled for April 5, 2011.
ABOUT UNUM GROUP
Unum (www.unum.com)
is one of the leading providers of employee benefits products and
services and the largest provider of disability insurance products 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. These forward-looking statements, including statements
about the timing and amount of the Company’s share repurchases, 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 managing our operating risks and the
implementation of operational improvements and strategic growth
initiatives; (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; and (22) ability to recover our systems and information in the
event of a disaster or unanticipated event.
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:
Tom White, 423-294-8996
or
Rob
Lockerman, 423-294-7498
or
Media:
Jim Sabourin,
423-294-6300 or 866-759-8686