Unum Encouraged by Current Economic Trends and Company Prospects CEO McKenney Tells Shareholders at Annual Meeting

Rhea-AI Summary

Unum Group's CEO, Rick McKenney, expressed optimism during the annual shareholder meeting held on May 27, 2021, highlighting confidence in the company's future as the U.S. economy recovers from the pandemic. The board approved a 5.3% increase in the quarterly dividend to 30.0 cents per share, effective Q3 2021. Unum paid $7.6 billion in benefits in 2020 and aims to resume share repurchases in the latter half of 2021. The company re-elected 11 directors and expects to publish final voting results soon.

Positive

• Authorized a 5.3% increase in quarterly dividend to 30.0 cents per share.
• Paid $7.6 billion in benefits in 2020, demonstrating strong financial performance.
• Plans to gradually resume share repurchases in the second half of 2021.

Negative

• None.

CHATTANOOGA, Tenn., May 27, 2021 /PRNewswire/ -- At the annual shareholder's meeting today, Unum Group (NYSE:UNM) President and CEO Rick McKenney expressed growing confidence in Unum's future as the US recovers from the pandemic and the economy strengthens.

As announced earlier this morning, Unum's board of directors authorized an increase of 5.3% in the quarterly dividend paid on its common stock. The new rate of 30.0 cents per common share, or $1.20 per share on an annual basis, will be effective with the dividend expected to be paid in the third quarter of 2021.

"Today's decision by the board to increase our quarterly dividend demonstrates the confidence we feel in our capital position and performance outlook for the year," McKenney said. "As the economic backdrop continues to improve, we expect to be in a position to gradually resume repurchasing shares in the second half of 2021."

Despite unprecedented circumstances in 2020, the company's 10,700 employees demonstrated an unwavering commitment to serving customers, ensuring Unum continued to deliver on its purpose of helping the working world thrive throughout life's moments. In 2020, Unum paid $7.6 billion in benefits across a broad range of financial protection products while investing in capabilities to enhance the employee experience and solutions to help employers navigate the complex leave and benefits administration environment.

"As we look back, 2020 was a year of extraordinary disruption. Yet through a prudent business approach and unyielding commitment to serving our customers, we maintained our strong market presence and profitability," McKenney said. "We're here today because of our outstanding people, and I am confident in their ability to deliver for our customers, help protect more workers and their families, and realize our full potential."

Based on preliminary voting results, Unum shareholders re-elected 11 directors for terms expiring in 2022: Theodore Bunting, Jr., Susan Cross, Susan DeVore, Joseph Echevarria, Cynthia Egan, Kevin Kabat, Timothy Keaney, Gloria Larson, Rick McKenney, Ronald O'Hanley and Francis Shammo; approved, on an advisory basis, the compensation of Unum's named executive officers; and ratified the appointment of the company's auditors. Unum expects to publish the final voting results in a Form 8-K filing with the SEC within the next four business days.

FORWARD-LOOKING STATEMENTS
Certain statements in this release, including statements regarding expectations for share repurchases, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Unum Group and its subsidiaries. Unum Group's actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in Part 1, Item 1A (Risk Factors) of Unum Group's Annual Report on Form 10-K for the year ended December 31, 2020. The forward-looking statements in this release speak only as of the date of this release, and Unum Group does not undertake to update any particular forward-looking statement included in this release.

ABOUT UNUM
Unum Group (www.unum.com) provides a broad portfolio of financial protection benefits and services through the workplace, and is a leading provider of disability income protection worldwide. Through its Unum US, Unum UK, Unum Poland, and Colonial Life businesses, the company provides disability, life, accident, critical illness, dental and vision benefits that protect millions of working people and their families. Unum also provides leave and absence management services that streamline the leave experience for employers and employees and stop-loss coverage to help self-insured employers protect against medical costs. Unum reported revenues of $13.2 billion in 2020 and provided $7.6 billion in benefits.

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SOURCE Unum Group

FAQ

What was the dividend increase announced by Unum Group (UNM) in May 2021?

Unum Group announced a 5.3% increase in its quarterly dividend, raising it to 30.0 cents per share.

How much did Unum Group (UNM) pay in benefits in 2020?

In 2020, Unum Group paid $7.6 billion in benefits.

When does Unum Group (UNM) expect to resume share repurchases?

Unum Group expects to gradually resume share repurchases in the second half of 2021.

What did Unum Group (UNM) report about its financial outlook during the annual meeting?

During the annual meeting, Unum Group's CEO expressed confidence in the company's future due to the improving economic backdrop.

When will Unum Group (UNM) publish the final voting results from the shareholder meeting?

Unum Group expects to publish the final voting results in a Form 8-K filing with the SEC within the next four business days.