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UnumProvident Reports Higher Second Quarter Net Income

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NU Online News Service, July 25, 6:55 p.m. – UnumProvident Corp., Chattanooga, Tenn., is reporting $146 million in net income for the second quarter on $2.3 billion in revenue, compared with $143 million in net income on $2.4 billion in revenue for the second quarter of 2000.

Operating income, which includes taxes but excludes $200,000 in investment losses for the latest quarter, increased 2%, to $146 million.

Although the death rate among group life policyholders was higher than expected and the economy was weak, group disability earnings and employee benefits persistency levels were strong, according to UnumProvident Chairman J. Harold Chandler.

Because of the problems with group life mortality forecasts, operating income on all kinds of employee benefits fell to $120 million on $1.1 billion in premium revenue, from $121 million on $1 billion in premium revenue.

But income from group disability products increased to $90 million, from $67 millio, and premium persistency for the group LTD business increased to 85%, from 81%, UnumProvident says.

On the individual side, operating income rose to $77 million on $53 million in premium revenue, from $72 million on $441 million in premium revenue, partly because investment income was up.

Income on the long-term care insurance business increased to $4.1 million, from $2.3 million, because of strong revenue growth and a decrease in the number of new claims, UnumProvident says.