CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
Unum Group (NYSE:UNM) is announcing today that it has substantially
completed its reserve review for its long-term care block of business,
previously referenced in the company’s second quarter 2018 earnings
release. Based on its analysis, the company expects to increase its
long-term care GAAP reserves in the third quarter of 2018 by
approximately $590 million after-tax, or approximately $750 million
before-tax. Third quarter 2018 results are expected to be announced on
October 24, 2018.
The company estimates the impact to its statutory reserves will be
approximately $200 million on a before-tax basis, covering both its
active life and claim reserves for long-term care for all its legal
entities.
The company’s capital deployment plan remains unchanged and Unum intends
to resume share repurchase activity following the release of its third
quarter 2018 results.
The above amounts are subject to the company’s final close procedures
for the third quarter and may change when the company closes the quarter
in amounts it believes immaterial.
A presentation outlining the company’s reserve assumptions as well as
sensitivities of these assumptions can be found in the Investors section
of its website at www.unum.com,
which can be directly accessed at www.investors.unum.com.
Members of Unum Group senior management will conduct a conference call
for shareholders and analysts this morning, September 18, 2018, at 8:00
a.m. Eastern time, to discuss the reserve review. Interested parties are
invited to listen to the call by dialing the appropriate number.
For callers in the U.S. and Canada: 888-254-3590
For international
callers: 323-994-2093
Conference ID 7938612
A live webcast of the call will also be available at www.investors.unum.com
in a listen-only mode. It is recommended that interested parties access
the webcast approximately 5-10 minutes prior to the start of the call.
The company will maintain a replay of the webcast on its website.
Interested parties may also access a replay of the call through Tuesday,
September 25, 2018, by dialing the appropriate number.
For callers in the U.S. toll free: 888-203-1112
For callers in the
U.S. toll:719-457-0820
Conference ID 7938612
ABOUT UNUM GROUP
Unum Group (www.unum.com)
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, dental and vision coverage, which help
protect millions of working people and their families in the event of an
illness or injury. Unum also provides stop-loss coverage to help
self-insured employers protect against unanticipated medical costs. The
company reported revenues of $11.3 billion in 2017 and provided $6.9
billion in benefits.
For more information, connect with us on Facebook,
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and LinkedIn.
SAFE HARBOR STATEMENT
Certain information in this news 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 potential capital plans, are not guarantees
of future results and 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 governmental programs; (3) unfavorable economic or business
conditions, both domestic and foreign, that may result in decreases in
sales, premiums, or persistency, as well as unfavorable claims activity;
(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
acquisition 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) execution risk related to our technology needs; (9) increased
competition from other insurers and financial services companies due to
industry consolidation, new entrants to our markets, or other factors;
(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 in the
broad array of our products that deviates from our assumptions used in
pricing, underwriting, and reserving; (13) changes in accounting
standards, practices, or policies; (14) effectiveness of our risk
management program; (15) contingencies and the level and results of
litigation; (16) availability of reinsurance in the market and the
ability of our reinsurers to meet their obligations to us; (17)
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; (18)
fluctuation in foreign currency exchange rates; (19) ability to generate
sufficient internal liquidity and/or obtain external financing; (20)
recoverability and/or realization of the carrying value of our
intangible assets, long-lived assets, and deferred tax assets; and (21)
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 Unum Group’s annual
report on Form 10-K for the year ended December 31, 2017, and our
subsequently filed quarterly reports on Form 10-Q. The forward-looking
statements in this news release are being made as of the date of this
news 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: https://www.businesswire.com/news/home/20180918005461/en/
Unum Group
Investor Relations:
Tom White, 423-294-8996
or
Media
Relations:
Jim Sabourin, 423-294-6043
Source: Unum Group