Unum Falls the Most Since April on Lower Sales: Atlanta Mover

Unum Group (UNM), the largest U.S. disability insurer, fell the most since April after reporting a decline in second-quarter sales.

Unum dropped 4.8 percent to $30.79 at 11:35 a.m. in New York, the worst performer in the 81-company Standard & Poor’s 500 Financials Index. Revenue for the period ending June 30, including investments, slid 0.6 percent to $2.6 billion from a year earlier, Chattanooga, Tennessee-based Unum said in a statement yesterday, missing the $2.61 billion average estimate of eight analysts surveyed by Bloomberg.

“Against a backdrop where most group insurance peers demonstrated year-over-year sales growth, UNM’s second-quarter 2013 results clearly bucked that trend,” John Nadel, an analyst at Sterne Agee & Leach Inc., said today in a note using the company’s ticker symbol.

Annualized premium income on new sales in the quarter fell 19 percent for Unum’s main U.S. unit and 7.2 percent in the U.K. from a year earlier, acccording to a regulatory filing today. Net income rose 1 percent to $218.6 million, or 82 cents a share, from a year earlier.

Chief Executive Officer Thomas Watjen has said he’s prepared to limit sales rather than offer products at unattractive prices.

“While sales growth continues to be a challenge in the U.S., we remain committed to maintaining the pricing and underwriting discipline that has served us so well,” Watjen, 59, said in the statement.

To contact the reporter on this story: Megan Hickey in New York at Mhickey18@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

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