Unum CEO expects COVID-19 earnings impact to persist

The impact of COVID-19 on Unum Group's financial results is "clear" and will "linger" into 2022, according to the life insurer's top executive.

In terms of benefits, the company's results were "significantly impacted" by COVID-19 claims, with Unum logging continued elevated mortality in the group life business, CEO Rick McKenney said on an earnings call. COVID-19-related mortality remained elevated at the national level, with working-aged individuals accounting for a significant number of deaths. The benefit ratio for the group life and accidental death and dismemberment line of business in the fourth quarter of 2021 was 98.3%, compared to 90.4% in the fourth quarter of 2020, due to higher incidence in the group life product line and higher average claim size.

Unum also continues to see pressure on its short-term disability results from high infection rates and hospitalizations, which has led to an increase in lead request volumes, McKenney said. Still, the CEO expects improvements in mortality and in the severity of COVID-19 infections, although it may take "several quarters" for those trends to emerge.

Unum posted fourth-quarter 2021 net income of $159.7 million, or 78 cents per share, compared with $135.4 million, or 66 cents per share, in the prior-year period. For full year 2021, the company's net income rose year over year to $824.2 million, or $4.02 per share, from $793.0 million, or $3.89 per share.