|Bid||26.21 x 1100|
|Ask||26.22 x 1200|
|Day's Range||26.40 - 26.82|
|52 Week Range||25.69 - 40.76|
|Beta (3Y Monthly)||1.55|
|PE Ratio (TTM)||10.78|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||1.14 (4.26%)|
|1y Target Est||36.31|
Unum Group announced today that Steve Zabel, EVP & CFO, will be representing the company at the 2019 KBW Insurance Conference, Thursday, September 5, 2019, in New York City.
(Bloomberg Opinion) -- General Electric Co. is learning the price of its credibility shortcomings.Shares of the embattled industrial giant plunged more than 15% at one point on Thursday after Bernie Madoff whistle-blower Harry Markopolos published a damning critique of the company’s accounting. Markopolos is working on behalf of an unidentified hedge fund that is betting GE shares will decline. The company calls his claims “meritless,” and CEO Larry Culp deemed the report “market manipulation” in an e-mailed statement. I read the report (all 170-plus pages of it), and my first instinct was that none of the allegations — which range from GE’s need to immediately bolster its long-term care insurance reserves with $18.5 billion in cash to looming writedowns on its stake in Baker Hughes to the generally confusing way the company represents its finances — are particularly new, at least not for those who have been paying close attention. The scale of the potential problems is bigger than any others have estimated, and the person making the claims has a track record of exposing fraud, having warned the U.S. Securities and Exchange Commission about Madoff’s Ponzi scheme years before it became public. But the line from the report that stood out to me the most was this one: “Who’s being transparent — them or us?”The market is giving its verdict. A series of broken promises, presentation “errors” that later have to be corrected, a continuing tendency to micromanage Wall Street expectations to orchestrate optical “beats” and an unwillingness to do away with heavily engineered earnings adjustments have cost GE dearly in the credibility department. Regardless of the truth of Markopolos’s report — and again, there’s plenty to debate there — GE has surrendered the high ground in its defense.Just this week, Steve Winoker, GE’s head of investor relations, issued an update on the company’s power unit and sought to clarify “confusion” about the number of 7F gas turbines it has installed. GE says it has 900 units in service, which is up relative to the year-end total of 2017 and 2018. But marketing materials from those years put GE’s 7F installed base at more than 1,100 units. Winoker says those materials lumped other types of units into the 7F tally. But there was really no room for that kind of interpretation in the wording of the brochure. This disclosure follows outgoing CFO Jamie Miller’s acknowledgment in May of the “confusion” created when she referenced an industry data firm’s calculation of power-equipment orders on an earnings call in a way that made GE’s business appear more robust than it was. At the Paris Air Show in June, in response to a question from JPMorgan Chase & Co. analyst Steve Tusa, Jean Lydon-Rodgers, CEO of GE Aviation’s services arm, said the company’s CF34 and CF6 engines account for “slightly less” than half of repair shop visits, raising questions about how exposed that business may be to a drop in profitability once those older models are replaced. In a follow-up e-mail to investors, Winoker clarified the number is actually just less than a third.Maybe these are all inadvertent errors. But for a company that clearly needs to do more to bolster its transparency and credibility, it’s a troubling fact pattern and puts it on the back foot when countering Markopolos’s allegations.The primary focus of Markopolos’s analysis is GE’s long-term care insurance business, which he argues needs an immediate $18.5 billion cash influx with a $10.5 billion non-cash GAAP charge looming over the next few years because of tougher accounting rules. That’s on top of the $15 billion reserve shortfall GE disclosed in January 2018. GE’s argument that insurance reserves are “well-supported for our portfolio characteristics” runs up against the contrast between what appears to be a deeply researched, numbers-heavy analysis by Markopolos and its own opaque commentary and financial presentations.Is Markopolos’s estimate correct? He bases it off an analysis of loss ratios and reserves for comparable policies at insurers such as Prudential Financial Inc. and Unum Group. His numbers seem dire, but GE itself warned in its annual filing that a more sober outlook for investment yields and the rate at which insurance claimants get healthier could force the company to put up additional pretax GAAP reserves, with some scenarios demanding a $12 billion increase. Estimating the appropriate reserve amount is a careful dance of assumptions of various puts and takes, and you’d need a crystal ball to accurately predict what’s required here. But the underlying point is that GE isn’t being nearly as conservative as it should be with this business, especially given looming accounting rule changes. I made that argument in February.He also argues that GE shouldn’t consolidate the Baker Hughes results in its numbers and that it’s avoiding a writedown on that deal. I’m less troubled by this because GE has disclosed the size of the potential impairment once its stake in Baker Hughes drops below 50%, and it does clearly break out the earnings and cash flow contribution from the business. What could end up being most problematic for GE is Markopolos’s brief allusion to the disconnect between the aviation unit’s $4.2 billion in 2018 free cash flow and engine partner Safran SA’s disclosure that it loses money on each Leap engine produced and won’t recover cost of goods sold until the end of the decade at best. The true underlying financials of that business have been a fixation for critics who contend it’s not as solid as GE makes it out to be.Markopolos obviously has a vested interest in pushing down GE’s share price. But the company would be wise to focus less on his motivations and more on refuting the specifics of his claims with hard numbers of its own. That would go a long way toward rebuilding investors’ trust.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Over the past 10 years Unum Group (NYSE:UNM) has grown its dividend payouts from $0.30 to $1.14. With a market cap of...
Unum (UNM) delivered earnings and revenue surprises of 1.49% and 1.22%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Unum Group today reported net income of $281.2 million for the second quarter of 2019, compared to net income of $285.5 million for the second quarter of 2018.
Unum (UNM) and several local partners are bringing the CEO Action Mobile Diversity Bus, an interactive tour bus and learning experience raising awareness of unconscious bias, to Chattanooga Monday, Aug. 5. The tour bus will be parked at Unum’s headquarters and uses virtual reality, gaming technology, and other interactive activities to teach visitors about unconscious biases, or ‘blind spots,’ that can potentially influence their behavior in the workplace and community. Although Unum is the host company, several local partners and their leaders are championing inclusion in the workforce and the broader community by inviting their employees to tour the bus, including BlueCross BlueShield of Tennessee, Chattanooga Area Chamber of Commerce, City of Chattanooga, and EPB.
NEW YORK , July 26, 2019 /PRNewswire/ -- Amneal Pharmaceuticals, Inc. (AMRX) Lifshitz & Miller announces investigation into possible securities laws violations in connection with allegations that Amneal ...
Unum (UNM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that...
Bragar Eagel & Squire, P.C. is investigating potential claims against certain officers and directors of Unum Group (UNM). According to the filed complaint, Unum routinely misrepresented the expected range of its long-term care loss ratio, downplaying the likelihood that the company would experience excessive losses and need to take a charge to its reserves. After Unum took modest reserve changes in 2011 and 2014, Unum officials reassured investors that the company’s underlying assumptions were unlikely to lead to future losses.
NEW YORK, NY / ACCESSWIRE / July 18, 2019 / Purcell Julie & Lefkowitz LLP, a class action law firm dedicated to representing shareholders nationwide, is investigating a potential breach of fiduciary duty ...
Effective July 15, 2019, the Unum Group Board of Directors declared a quarterly dividend of $0.285 per share on its common stock to be paid on August 16, 2019, to stockholders of record on July 29, 2019.
Credit Suisse analyst Andrew Kilgerman estimates that Unum’s after-tax reserves linked to its existing long-term care policies are likely to fall short of what it will have to pay by $5.7 billion.
A new Colonial Life survey finds just 11% of employees depend on internet for valuable benefits information. While today’s younger employees grew up with powerful computers that can reach the world fitting into their pockets, it doesn’t mean the Internet has become a trusted source for advice on protecting their families, finances and futures. In a survey of 1,506 full-time U.S. employees, Colonial Life found just 11% of employees name the Internet as the place they turn to learn about benefits at enrollment season each year.
Unum Group NYSE:UNMView full report here! Summary * Perception of the company's creditworthiness is positive * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for UNM with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting UNM. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $3.65 billion over the last one-month into ETFs that hold UNM are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. UNM credit default swap spreads are near the lowest level of the last three years and indicate the market's continued positive perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Employee benefits leader Unum (UNM), has been recognized as one of America’s Best Employers for Women by Forbes. Unum scored particularly high for its pay equity, family support, and parental leave policies, and diversity among top executives and board members. “Our commitment to inclusion starts at the top,” said Liz Ahmed, executive vice president of People and Communications at Unum.