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Unum increases group disability sales

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Unum Group Corp. pulled U.S. employers away from health benefits seminars long enough in the second quarter to sell them some group disability insurance.

Group long-term disability (LTD) insurance sales increased 43 percent, to $47 million, and group short-term disability (STD) insurance sales increased 25 percent, to $23 million.

Unum (NYSE:UNM) published those figures Wednesday in an earnings announcement. The company is best known for U.S. disability insurance sales but also owns Colonial Life, a large voluntary benefits insurer, and a disability insurance business in the United Kingdom.

The company is reporting $242 million in net income for the latest quarter on $2.7 billion in revenue, compared with $219 million in net income on $2.6 billion in revenue for the second quarter of 2013.

The U.S. disability business generated $74 million in operating income for the quarter on $524 million in revenue, compared with $73 million in net income on $524 million in revenue for the comparable quarter in 2013. Claim incidence rates were stable, and the benefit ratio fell to 81.9 percent, from 83.9 percent.

Colonial Life sales increased 7.7 percent, to $91 million. Operating income increased 5.9 percent, to $75 million.

The performance of the company’s long-term care insurance (LTCI) business also improved. The company no longer sells LTCI coverage, but it collected $157 million in LTCI premium revenue from holders of in-force policies in the latest quarter, down from $158 million.

The interest-adjusted LTCI loss ratio fell sharply — to 80.8 percent, from 89.4 percent.

See also: LTCI claims hit Genworth earnings