NU Online News Service, April 25, 2003, 12:33 p.m. EDT – UnumProvident Corp., Chattanooga, Tenn., is reporting a $246 million net loss for the first quarter on $2.5 billion in revenue, compared with $88 million in net income for the first quarter of 2002.
Net results for the latest quarter include a $454 million increase in reserves for group long-term disability insurance, UnumProvident says.
UnumProvident says it is increasing the group long-term disability reserves 6.2%, to $7.3 billion, because it has having a harder time making recoveries on group LTD claims.
Excluding the effects of the reserve increase and other unusual gains and charges, operating income would have fallen to $106 million, from $151 million for the first quarter of 2002, UnumProvident says.
UnumProvident sells disability insurance and group life and accident insurance. It also sells individual insurance products at the worksite through its Colonial Life & Accident Insurance Company subsidiary.
Disability insurance: The disability insurance unit generated a $354 million operating loss for the latest quarter on $1.3 billion in premium revenue, compared with $163 million in operating income on $1.2 billion in revenue for the first quarter of 2002.