Company expects to increase its long-term care GAAP reserves in the third quarter of 2018
September 18, 2018 — CHATTANOOGA, Tenn.–(BUSINESS WIRE)–Unum Group (NYSE:UNM) is announcing today that it has substantially completed its reserve review for its long-term care block of business, previously referenced in the company’s second quarter 2018 earnings release. Based on its analysis, the company expects to increase its long-term care GAAP reserves in the third quarter of 2018 by approximately $590 million after-tax, or approximately $750 million before-tax. Third quarter 2018 results are expected to be announced on October 24, 2018.
The company estimates the impact to its statutory reserves will be approximately $200 million on a before-tax basis, covering both its active life and claim reserves for long-term care for all its legal entities.
The company’s capital deployment plan remains unchanged and Unum intends to resume share repurchase activity following the release of its third quarter 2018 results.
The above amounts are subject to the company’s final close procedures for the third quarter and may change when the company closes the quarter in amounts it believes immaterial.
A presentation outlining the company’s reserve assumptions as well as sensitivities of these assumptions can be found in the Investors section of its website at www.unum.com, which can be directly accessed at www.investors.unum.com.
Conference Call Scheduled
Members of Unum Group senior management will conduct a conference call for shareholders and analysts this morning, September 18, 2018, at 8:00 a.m. Eastern time, to discuss the reserve review. Interested parties are invited to listen to the call by dialing the appropriate number.
For callers in the U.S. and Canada: 888-254-3590
For international callers: 323-994-2093
Conference ID 7938612
A live webcast of the call will also be available at www.investors.unum.com in a listen-only mode. It is recommended that interested parties access the webcast approximately 5-10 minutes prior to the start of the call. The company will maintain a replay of the webcast on its website. Interested parties may also access a replay of the call through Tuesday, September 25, 2018, by dialing the appropriate number.
For callers in the U.S. toll free: 888-203-1112
For callers in the U.S. toll:719-457-0820
Conference ID 7938612
ABOUT UNUM GROUP
Unum Group (www.unum.com) is a leading provider of financial protection benefits in the United States and the United Kingdom. Its primary businesses are Unum US, Colonial Life, and Unum UK. Unum’s portfolio includes disability, life, accident and critical illness, dental and vision coverage, which help protect millions of working people and their families in the event of an illness or injury. Unum also provides stop-loss coverage to help self-insured employers protect against unanticipated medical costs. The company reported revenues of $11.3 billion in 2017 and provided $6.9 billion in benefits.
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