Unum Group Reports $425.4 Million Loss in Fourth Quarter

By Warren S. Hersch

February 07, 2012 at 07:00 AM

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Unum Group, Chattanooga, Tenn., reported a net loss of $425.4 million ($1.45 per diluted common share) for the fourth quarter of 2011. This compares to net income of $225.8 million ($0.71 per diluted common share) for the fourth quarter of 2010.

Unum attributed the loss in part to an after-tax charge of $561.2 million the company took following its decision to discontinue new group long-term care sales. The company also cited an after-tax reserve charge of $119.3 million in its individual disability closed block.

Adjusting for this charge and other items, operating income on an after-tax basis was $227.6 million ($0.78 per diluted common share) in the fourth quarter of 2011, compared to $208.6 million ($0.66 per diluted common share) in the fourth quarter of 2010.

Net income for the year ended December 31 was $235.4 million or $0.78 per share. This is down 73% from the $886.1 million or $2.71 per share posted in 2010.

Revenue for the fourth quarter of 2011 was $2.604 billion, up slightly from the $2.593 billion recorded for the year-ago period. Revenue for all of 2011 and 2010 was $10.278 billion and $10.193 billion, respectively.

In other financial news, Protective Life Corporation, Birmingham, Ala. (NYSE:PL), has declared a quarterly dividend of $0.16 per share. The corporation's board of directors declared the quarterly dividend to be paid February 27, 2012 to share owners of record at the close of business on February 16, 2012.

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