[LOGO] UNUM. NEWS
- --------------------------------------------------------------------------------
DATE CONTACT
FOR IMMEDIATE RELEASE MEDIA -
APRIL 26, 1995 ROBERT E. LIBBEY
(207) 770-4356
ANALYSTS -
KENT W. MOHNKERN
(207) 770-4392
UNUM ANNOUNCES FIRST QUARTER EARNINGS
PORTLAND, Maine... UNUM Corporation (NYSE:UNM) today announced first quarter
1995 net income of $63.4 million or $0.87 per share, compared with $77.1 million
or $1.02 per share in first quarter 1994. Revenues for first quarter 1995 were
$955.1 million versus $875.1 million for the same quarter in 1994.
"This quarter's results reflect unfavorable claims experience in our United
Kingdom operations that adversely affected overall earnings, although both our
group and individual disability businesses in the United States have shown
improvement over fourth quarter 1994 operating earnings," said James F. Orr III,
chairman and chief executive officer of UNUM Corporation. "We continue to make
progress on several initiatives we have under way to better address today's risk
environment. This quarter, annualized premium in our group long term disability
line surpassed $1 billion and we are on track with our strategy to develop new
products for the domestic individual disability market."
UNUM's Disability Insurance segment reported pretax income of $50.8 million
in first quarter 1995 versus $67.6 million in first quarter 1994. Premiums for
first quarter 1995 were $451.0 million, compared with $397.7 million in the same
quarter of 1994.
- - more -
2-2-2
For first quarter 1995, the Special Risk Insurance segment reported pretax
income of $17.0 million versus $17.7 million for first quarter 1994. Premiums
for the segment were $159.2 million versus $137.6 million for first quarter
1994.
First-quarter pretax income for the Colonial Products segment was
$17.1 million in first quarter 1995, compared with $15.8 million for the
corresponding period in 1994. First quarter 1995 premiums were $116.2 million
versus $108.3 million in first quarter 1994.
UNUM's Retirement Products segment reported pretax income of $6.7 million
in first quarter 1995 versus $13.4 million in first quarter 1994.
UNUM Corporation is a publicly held disability and special risk insurance
holding company based in Portland, Maine. UNUM's affiliates include UNUM Life
Insurance Company of America, the nation's leading provider of disability
insurance and a provider of employee benefits, long term care and retirement
products; First UNUM Life Insurance Company (New York state only); Commercial
Life Insurance Company, a leader in special risk and professional association
insurance marketing; UNUM Limited, the United Kingdom's leader in group
disability insurance; Duncanson & Holt, Inc., a leading accident and health
reinsurance underwriting manager; Colonial Life & Accident Insurance Company,
the leader in payroll-deducted, voluntary employee benefits offered to employees
at their worksites; and UNUM Japan Accident Insurance Company Limited. UNUM and
its affiliates have more than 7,000 employees and have offices in the U.S.,
Canada, the U.K. and the Pacific Rim. UNUM Corporation assets totaled
$13.4 billion at the end of first quarter 1995.
EDITOR'S NOTE: As of January 1, 1995, UNUM began reporting its operations
in four business segments to more clearly reflect the corporation's management
of its businesses and to more appropriately group its product portfolios.
###
UNUM CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited - dollars in millions, except per common share data)
Three Months Ended Twelve Months Ended
-------------------------- ---------------------------
03/31/95 03/31/94 12/31/94 12/31/93
-------- -------- -------- --------
Revenues:
Premiums & other income:
Disability Insurance $ 457.0 $ 402.9 $ 1,716.2 $ 1,547.9
Special Risk Insurance 169.7 149.6 607.1 559.4
Colonial Products 116.8 108.9 441.3 407.4
Retirement Products 8.8 10.4 31.4 42.5
Corporate - 0.3 0.8 -
------------ ----------- ------------ ------------
Total premiums & other
income 752.3 672.1 2,796.8 2,557.2
------------ ----------- ------------ ------------
Investment income:
Disability Insurance $ 94.3 $ 86.3 $ 358.2 $ 336.4
Special Risk Insurance 10.6 9.1 40.5 34.2
Colonial Products 9.5 7.0 30.9 29.8
Retirement Products 75.8 86.9 335.8 384.3
Corporate 1.7 1.8 4.8 5.7
------------ ----------- ------------ ------------
Total inv. income 191.9 191.1 770.2 790.4
------------ ----------- ------------ ------------
Realized inv. gains
(losses):
Disability Insurance $ 8.1 $ 10.5 $ 42.1 $ 33.4
Special Risk Insurance 0.2 0.1 0.2 0.6
Colonial Products 0.7 0.5 1.7 11.6
Retirement Products 1.8 0.3 2.2 3.3
Corporate 0.1 0.5 (0.6) 0.5
------------ ----------- ------------ ------------
Total realized inv.
gains(losses) 10.9 11.9 45.6 49.4
------------ ----------- ------------ ------------
Total revenues 955.1 875.1 3,612.6 3,397.0
------------ ----------- ------------ ------------
Benefits and expenses:
Disability Insurance $ 508.6 $ 432.1 $ 2,060.3 $ 1,603.6
Special Risk Insurance 163.5 141.1 581.9 555.3
Colonial Products 109.9 100.6 411.2 378.4
Retirement Products 79.7 84.2 327.4 375.8
Corporate 8.0 6.3 33.2 23.6
------------ ----------- ------------ ------------
Total ben. & exp. 869.7 764.3 3,414.0 2,936.7
------------ ----------- ------------ ------------
(continued on next page)
UNUM CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited - dollars in millions, except per common share data)
Three Months Ended Twelve Months Ended
---------------------- -------------------------
03/31/95 03/31/94 12/31/94 12/31/93
-------- -------- -------- --------
Income before inc. taxes:
Disability Insurance $ 50.8 $ 67.6 $ 56.2 $ 314.1
Special Risk Insurance 17.0 17.7 65.9 38.9
Colonial Products 17.1 15.8 62.7 70.4
Retirement Products 6.7 13.4 42.0 54.3
Corporate (6.2) (3.7) (28.2) (17.4)
------------ ----------- ------------ ------------
Total income before
income taxes 85.4 110.8 198.6 460.3
Income taxes 22.0 33.7 43.9 148.3
------------ ----------- ------------ ------------
Income before cumulative
effects of accounting
changes 63.4 77.1 154.7 312.0
Cumulative effects of
accounting changes:
Income taxes - - - 20.0
Postretirement ben.
other than pensions,
net of tax - - - (32.1)
------------ ----------- ------------ ------------
Net Income $ 63.4 $ 77.1 $ 154.7 $ 299.9
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
Per common share:
Income before cumulative
effects of accounting
changes $ 0.87 $ 1.02 $ 2.09 $ 3.96
Cumulative effects of
accounting changes:
Income taxes $ - $ - $ - $ 0.25
Postretirement ben.
other than pensions,
net of tax $ - $ - $ - $ (0.40)
Net Income $ 0.87 $ 1.02 $ 2.09 $ 3.81
Book Value $ 28.01 $ 27.90 $ 26.45 $ 27.67
Shares out. per. end. 72,583,638 75,567,762 72,412,528 75,981,142
Weighted avg. shares
outstanding 72,466,273 75,607,972 74,157,506 78,779,241