Unum Group Q4 Profit Tops Estimates; Announces Leadership Transition

(RTTNews) - Unum Group (UNM) reported a net loss of $279.1 million or $1.11 per share for the fourth quarter of 2014, compared to net income of $221.2 million or $0.84 per share for the fourth quarter of 2013. Included in the net loss for the fourth quarter of 2014 is an after-tax reserve charge of $453.8 million in the long-term care closed block, as well as the amortization of prior period actuarial losses on the pension plans, a settlement loss from a pension plan amendment, and a net realized investment loss, the combined impact of which resulted in an after-tax loss of $54.1 million. Adjusting for the items, operating income on an after-tax basis was $228.8 million or $0.90 per share in the fourth quarter of 2014.

On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.88 for the quarter. Analysts' estimates typically exclude special items.

Revenue increased to $2.64 billion from $2.59 billion last year. Analysts expected revenue of $2.70 billion for the quarter.

The company anticipates growth in after-tax operating earnings per share for full-year 2015 to be in the outlook range announced in December 2014 of two percent to five percent.

Unum Group announced that CFO Richard McKenney has been named the next Chief Executive Officer, succeeding Thomas Watjen, who has informed the Board of his decision to retire from his executive position at Unum's 2015 Annual Meeting after 12 years as CEO. Effective April 1, 2015, McKenney will become President and be appointed to the Unum Board. Effective at the 2015 Annual Meeting, McKenney will succeed Watjen as Chief Executive Officer. Jack McGarry, currently President and CEO of Closed Block Operations, will succeed McKenney as CFO on April 1.