Says employee benefits play major role in addressing growing need for
financial protection
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
In his comments to shareholders at the company’s annual meeting here
today, Unum (NYSE:UNM) CEO Thomas R. Watjen touted the company’s record
of delivering on its commitments and creating value for shareholders,
noting these results were made possible because Unum continues to follow
the “playbook” established a number of years ago.
“While singularly focused on employee benefits in the workplace, we have
continued to develop both geographic and product diversity, which has
significantly reduced the risk in our business and contributed to our
overall success,” he said. In spite of the challenging environment,
Watjen sees solid long-term growth opportunities for the leading
benefits provider, if the company continues to execute well.
“The good news is that the opportunities exceed the challenges,” he
said. “It’s rewarding to be in a position where there is a compelling
need for what we do, where we have strong positions from which to
operate, and where, when we execute well, our business generates solid
margins and excess capital.”
Unum’s operating earnings per share have grown at a compound rate of 11
percent since 2006 while it has continued to generate solid returns for
its shareholders. The company’s one-, three- and five-year shareholder
returns have outperformed the industry, the S&P 500 and the broader
stock market.
“We have every reason to believe this performance is sustainable,” said
Watjen, noting that Unum continues to be a market leader in making
disability, life and voluntary benefits accessible in the workplace, and
that the company has maintained a strong brand with high levels of
customer satisfaction and a culture of responsibility.
He also told shareholders that Unum is well positioned to be part of the
solution to a growing set of issues impacting individuals, businesses
and governments in both the U.S. and U.K.
“The unfortunate reality is that most people are in a precarious
financial position today, and they lack the basic insurance to protect
themselves and their families should something unexpected occur,” said
Watjen, citing near-historic lows in personal savings rates and life and
disability insurance coverage. “At the same time, governments in both
the U.S. and the U.K. are facing budget challenges and record deficits,
leaving them reconsidering their roles in providing ‘social safety nets’
for people.”
Fortunately, said Watjen, people understand the need to accept more
responsibility for their overall financial security, even though they
don’t always know where to turn.
“The workplace is the most effective way to fulfill the need for
financial protection because the workplace provides access to and
education about benefits for the majority of people,” added Watjen,
saying that lower- and middle-income families in particular depend on
the workplace for benefits due to their accessibility and affordability.
“Employer-sponsored benefits can also have a positive impact on the
public sector,” he said. Soon-to-be-released research sponsored by Unum
shows that disability insurance provided through the workplace, for
instance, currently keeps hundreds of thousands of families off of
public assistance, saving the government billions of dollars annually.
“The more effective our industry is in meeting this need, the less
dependent we will be on our already strained public programs, which
could help with this country’s deficit reduction initiatives.”
Executive Vice President and CFO Rick McKenney also addressed
shareholders at today’s meeting, pointing to the company’s significant
earnings growth since 2005 and its current capital position as evidence
that the focus on profitability and financial flexibility is working.
“The consistency of our operating performance, the quality of our
investment portfolio and the strength of our capital position have
enabled us to increase dividends and announce $1.5 billion in share
repurchases over the last two years,” he said. “Our performance has been
consistent throughout the economic downturn due to our philosophy of
taking responsible investment and underwriting risks, managing expenses
wisely, and maintaining the capital to withstand market downturns. We
intend to stick with this strategy, which has served us and our
shareholders well.”
On a related note, Unum’s Board of Directors today authorized an
increase of approximately 13.5 percent in the quarterly dividend paid on
its common stock, marking the third consecutive year in which the
company has raised its quarterly dividend.
Also at today’s meeting, Unum shareholders elected four directors to
terms expiring in 2014. They are: Jon S. Fossel, chairman of the board
of Unum Group and retired chairman and CEO of the OppenheimerFunds;
Gloria C. Larson, president of Bentley University; William J. Ryan,
retired chairman of the board of TD Banknorth, Inc.; and Watjen.
ABOUT UNUM GROUP
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
income protection insurance in the United States and the United Kingdom.
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
866-759-8686