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UnumProvident Reports Lower 1st Quarter Net Income

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NU Online News Service, May 8, 11:30 a.m. – UnumProvident Corp., Portland, Maine, is reporting $74 million in net income for the first quarter on $2.4 billion in operating revenue, compared with $182 million in net income on $2.3 billion in operating revenue for the first quarter of 2001.

The company’s operating income, which excludes $77 million in investment losses, a $35 million tax benefit, and other unusual items, increased to $151 million, from $148 million.

? Employee benefits: Operating income increased 0.5%, to $87 million. Group disability claims were higher and group life earnings were lower, but new group long-term disability sales increased 14%, to $20 million, new group short-term disability sales increased 34%, to $9 million, and new group life, accident and long-term care insurance sales increased 16%, to $17 million.

? Individual insurance: Operating income fell 19%, to $69 million, in part because of higher disability and long-term care insurance claims rates. New individual disability sales held steady at $7 million, and new individual LTC sales held steady at $3 million.

? Voluntary benefits: Operating income fell 2%, to $40 million, even though new sales increased 23%, to $20 million.