Unum Group (NYSE:UNM) Q4 2018 Earnings Conference Call Transcript

Feb 05, 2019 • 08:00 am ET

Previous

Unum Group (NYSE:UNM) Q4 2018 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good day, and welcome to the Unum 4Q 2018 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Tom White, Head of Investor Relations. Please, go ahead sir.

Executive
Tom White

Great. Thank you, Amanda. Good morning, everyone, and welcome to the fourth quarter 2018 earnings conference call for Unum.

Our remarks today will include forward-looking statements, which are statements that are not of current or historical fact. As a result, actual results might differ materially from results suggested by these forward-looking statements. Information concerning factors that could cause results to differ appears in our filings with the Securities and Exchange Commission and are also located in the section titled Cautionary Statement Regarding Forward-Looking Statements and Risk Factors in our Annual Report on Form 10-K, as well as our subsequently filed quarterly reports on Form 10-Q. Our SEC filings can be found in the Investor section of our website at unum.com.

I remind you that statements in today's call speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements. A presentation of the most directly comparable GAAP measures and reconciliations of any non-GAAP financial measures included in today's presentation can be found in our statistical supplement on our website also in the Investors section.

As you saw on yesterday afternoon's earnings release, for the fourth quarter of 2018 Unum reported net income of $249.1 million, or $1.15 per diluted common share. Net income included a net realized investment loss of $32.6 million, or $0.15 per diluted common share. So, after-tax adjusted operating earnings were $281.7 million, or $1.30 per diluted common share.

For full year 2018, net income was $523.4 million or $2.38 per diluted common share. Net income includes a net realized investment loss of $28.5 million or $0.12 per diluted common share and the reserve charge in the long-term care line which reduced net income by $593.1 million or $2.70 per diluted common share. So, after-tax adjusted operating income was $1.145 billion, or $5.20 per diluted common share.

As background, in the fourth quarter of 2017, net income was $266.9 million, or $1.19 per diluted common share. Included in net income were impacts related to the US tax reform bill, the reevaluation of our net deferred tax liabilities at the newly enacted rate of 21% and a one-time tax on and distributed and previously untapped foreign earnings and profits, which resulted in net tax benefit of $31.5 million, or $0.14 per diluted common share and included a net loss of $25.4 million or $0.11 per diluted common share, related to the settlement of a third-party review conducted on behalf of a number of State treasurers, concerning unclaimed death benefits.

The net after-tax realized investment gain on our investment portfolio was $7.2 million or $0.03 per diluted common share. So after-tax adjusted operating income, which excludes these items, was $253.6 million, or $1.13 per diluted common share again in the