Unum profit doubles as investment results improve

Unum 3Q profit doubles, as year-ago qtr included $109M investment loss; company backs outlook

• On 5:27 pm EST, Tuesday November 3, 2009

CHATTANOOGA, Tenn. (AP) -- Employee benefits and disability insurance provider Unum Group said Tuesday its third-quarter profit more than doubled because its investments performed better than they did a year ago.

Unum reported a profit of $221.1 million, or 66 cents per share, compared with $108 million, or 32 cents per share a year ago. The company gained $9.5 million, or 2 cents per share, from investments this year, and lost $108.9 million, or 32 cents per share, from investments in the third quarter of 2008.

Thomson Reuters says analysts were expecting a profit of 64 cents per share.

Unum said its revenue edged up 3 percent, to $2.52 billion from $2.44 billion. That fell short of the $2.56 billion analysts were expecting.

The company said Unum U.S. premium revenue fell 2 percent to $1.22 billion. Unum U.K. results were hurt by volatile exchange rates, and premium revenue fell 25 percent to $169.7 million. Premium revenue for the Colonial Life business rose 3 percent to $253.5 million.

For the full year, Unum backed its profit forecast of $2.50 to $2.60 per share for the year. Analysts expect $2.56 per share. In aftermarket trading, Unum stock dipped 5 cents to $20.14.