Says demand for employee benefits has never been greater
PORTLAND, Maine--(BUSINESS WIRE)--
At his first annual meeting as Unum’s CEO, Richard P. McKenney told
shareholders that he sees increasing demand for the company’s products
and services, and that the company is well-positioned to capitalize on
these opportunities and expand its reach.
“We look to the future with optimism because the need for what we do has
never been greater and we see a tremendous opportunity to continue to
grow the market,” said McKenney.
“We approach it from a position of strength,” he added. “Last year we
generated strong financial results, consistent operating performance and
significant growth across our businesses. As a result, we continue to be
well-positioned both financially and strategically to capitalize on the
opportunities ahead.”
A key competitive advantage for Unum, said McKenney, is the depth and
breadth of its experience in employee benefits, as well as its track
record of consistently meeting its commitments to stakeholders.
In 2015, Unum paid $6.8 billion in benefits and helped some 327,000
people return to work following a disability. Sales and premium each
rose 5 percent, while operating earnings per share grew for the 10th
consecutive year.
The company also increased its dividend for the seventh consecutive year
and repurchased more than $425 million of its stock in 2015, bringing
the amount repurchased since 2007 to $3.3 billion, or 36 percent of
shares outstanding.
“I truly believe we are not only stronger today than ever before, but
that we are uniquely positioned for growth and continued financial
success,” he added.
McKenney was named CEO at last year’s annual meeting upon the retirement
of Thomas Watjen, who served as CEO for 12 years and is now
non-executive chairman of the board. Concluding his first full year as
CEO, McKenney says he sees a tremendous opportunity to continue to grow
the market by helping people plan for unforeseen circumstances rather
than hope against them.
“Many workers in the U.S. and U.K. lack access to benefits that can
preserve their financial stability in the face of an unexpected event.
We believe we are uniquely positioned to address this pressing societal
issue.”
Unum made a key acquisition last year with the purchase of National
Dental Plan in the U.K. Earlier this year, Unum announced plans to
acquire Starmount Life Insurance Company, a leading dental and vision
benefits provider, as it seeks to capitalize on the recent growth in
those markets and expand its already-broad portfolio of employee
benefits.
For 2016, McKenney says the company aims to further the momentum it has
built over the last decade. He anticipates continued top-line growth
while maintaining solid operating margins and significant financial
flexibility to support the needs of its businesses.
“We are in good operating businesses with strong market positions, and
we’ve built a solid financial foundation,” he said. “By continuing to
anticipate the needs of our customers, and by remaining disciplined in
everything we do, we’ll be well-positioned to deliver even greater value
to our shareholders in the future.”
Also at today’s meeting, Unum shareholders voted to re-elect 13
directors for terms expiring in 2017: Theodore H. Bunting, Jr.; E.
Michael Caulfield; Joseph J. Echevarria; Cynthia L. Egan; Pamela H.
Godwin; Kevin T. Kabat; Timothy F. Keaney; Gloria C. Larson; Richard P.
McKenney; Edward J. Muhl; Ronald P. O’Hanley; Francis J. Shammo; and
Thomas R. Watjen.
A.S. (Pat) MacMillan, Jr., and William J. Ryan, lead independent
director, retired from the board today after having reached mandatory
retirement age. Kevin T. Kabat became the new lead independent director.
Separately today, the company’s board of directors authorized an
increase of 8 percent in the quarterly dividend paid on its common
stock. The new rate of 20 cents per common share, or 80 cents per share
on an annual basis, will be effective with the dividend expected to be
paid in the third quarter of 2016. The board also authorized the
repurchase of up to $750 million of the company’s outstanding stock
through Nov. 26, 2017, replacing the previous authorization of $750
million that was scheduled to expire later this year.
ABOUT UNUM GROUP
Unum
Group is a leading provider of financial protection benefits in the
United States and the United Kingdom. Its primary businesses are Unum
US, Colonial Life and Unum UK. Unum’s portfolio includes disability,
life, accident and critical illness coverage, which help protect
millions of working people and their families in the event of an illness
or injury. The company reported revenues of $10.7 billion in 2015, and
provided $6.8 billion in benefits last year.
For more information, visit us at www.unum.com
or connect with us at www.facebook.com/unumbenefits,
www.twitter.com/unumnews
and www.linkedin.com/company/unum.
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 our outlook, future
operations, strategies, financial results, or other developments and
speak only as of the date made. These forward-looking statements,
including statements about continued investment in our businesses and
return of capital, 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) sustained periods of low interest rates;
(2) fluctuation in insurance reserve liabilities and claim payments due
to changes in claim incidence, recovery rates, mortality and morbidity
rates, and policy benefit offsets 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, the effectiveness of our claims operational processes, and
changes in government programs; (3) unfavorable economic or business
conditions, both domestic and foreign; (4) legislative, regulatory, or
tax changes, both domestic and foreign, including the effect of
potential legislation and increased regulation in the current political
environment; (5) investment results, including, but not limited to,
changes in interest rates, defaults, changes in credit spreads,
impairments, and the lack of appropriate investments in the market which
can be acquired to match our liabilities; (6) a cyber attack or other
security breach could result in the unauthorized disclosure of
confidential data; (7) the failure of our business recovery and incident
management processes to resume our business operations in the event of a
natural catastrophe, cyber attack, or other event; (8) increased
competition from other insurers and financial services companies due to
industry consolidation, new entrants to our markets, or other factors;
(9) execution risk related to our technology needs; (10) changes in our
financial strength and credit ratings; (11) damage to our reputation due
to, among other factors, regulatory investigations, legal proceedings,
external events, and/or inadequate or failed internal controls and
procedures; (12) actual experience that deviates from our assumptions
used in pricing, underwriting, and reserving; (13) actual persistency
and/or sales growth that is higher or lower than projected; (14) changes
in demand for our products due to, among other factors, changes in
societal attitudes, the rate of unemployment, consumer confidence,
and/or legislative and regulatory changes, including healthcare reform;
(15) effectiveness of our risk management program; (16) contingencies
and the level and results of litigation; (17) availability of
reinsurance in the market and the ability of our reinsurers to meet
their obligations to us; (18) ineffectiveness of our derivatives hedging
programs due to changes in the economic environment, counterparty risk,
ratings downgrades, capital market volatility, changes in interest
rates, and/or regulation; (19) changes in accounting standards,
practices, or policies; (20) fluctuation in foreign currency exchange
rates; (21) ability to generate sufficient internal liquidity and/or
obtain external financing; (22) recoverability and/or realization of the
carrying value of our intangible assets, long-lived assets, and deferred
tax assets; and (23) terrorism, both within the U.S. and abroad, ongoing
military actions, and heightened security measures in response to these
types of threats.
For further discussion of risks and uncertainties which could cause
actual results to differ from those contained in the forward-looking
statements, see Part 1, Item 1A “Risk Factors” of our annual report on
Form 10-K for the year ended December 31, 2015, and, to the extent
applicable, our subsequent quarterly reports on Form 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160526005968/en/
Unum Group
Investors:
Tom White, 423-294-8996
Matt
Barnett, 423-294-7498
or
Media:
Jim Sabourin, 866-750-8686
Source: Unum Group