Unum Group Corp. (NYSE:UNM) made a profit during the second quarter, but a smaller profit than it earned during the second quarter of 2011.
Other insurers in the U.S. disability insurance market have been reporting a wide range of results today and Wednesday.
Operating income at Unum’s U.S. group disability insurance business was down, but group disability premium revenue was up slightly.
Unum, Chattanooga, Tenn., is reporting $216 million in net income for all operations for the latest quarter on $2.6 billion in revenue, compared with $228 million in net income on $2.6 billion in revenue for the second quarter of 2011.
Unum US is reporting $213 million in operating income for the latest quarter on $1.1 billion in premium revenue, up from $206 million in operating income on $1.1 billion in premium revenue for the comparable quarter in 2011.
The group disability business is reporting $70 million in operating income on $516 million in premium revenue, compared with $79 million in operating income on $507 million in premium revenue for the comparable quarter in 2011.
Group long-term disability (LTD) sales fell 6%, to $36 million, but group short-term disability sales increased 33%, to $24 million, and persistency — the likelihood that LTD business on the books would stay on the books — increased to about 92%, from about 90%, Unum says.
The Rest of the Pack
Hartford Financial Group Inc., Hartford (NYSE:HIG), says sales of fully insured group disability plans fell 27%, for example, to $27 million. Group disability premium revenue fell 6%, to $423 million.
But group disability sales at Lincoln National Corp., Radnor, Pa. (NYSE:LNC), increased 23%, to $38 million.
Prudential Financial Inc., Newark, N.J. (NYSE:PRU) — a company that combines results for group long-term disability insurance with results for group long-term care insurance — group disability sales increased to $41 million, from $30 million, and group disability gross premiums, policy charges and fee income increased to $362 million, from $304 million.
Analysts say low yields on bond holdings continue to hold down the insurers’ earnings on long-term disability business as well as on other products with results that depend partly on general account investment performance, such as long-term care insurance and kinds of annuities.
The Federal Reserve Board continues to do what it can to hold interest rates to unusually low levels in an effort to encourage home buyers, companies and others to borrow money and to help lower the costs of borrowers who have taken out variable-rate loans.