Unum Group (UNM, Financial) filed Quarterly Report for the period ended 2010-09-30.
Unum Group has a market cap of $7.48 billion; its shares were traded at around $22.82 with a P/E ratio of 8.7 and P/S ratio of 0.7. The dividend yield of Unum Group stocks is 1.6%. Unum Group had an annual average earning growth of 16.1% over the past 5 years.UNM is in the portfolios of NWQ Managers of NWQ Investment Management Co, Jeff Auxier of Auxier Focus Fund, Pioneer Investments, Richard Snow of Snow Capital Management, L.P., John Buckingham of Al Frank Asset Management, Inc., HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Steven Cohen of SAC Capital Advisors, David Dreman of Dreman Value Management, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jeremy Grantham of GMO LLC, Kenneth Fisher of Fisher Asset Management, LLC.
We believe our capital and financial position are very strong. At the end of the third quarter of 2010, the risk-based capital ratio for our traditional U.S. insurance subsidiaries, calculated on a weighted average basis using the NAIC Company Action Level formula, was approximately 410 percent, compared to 382 percent at the end of 2009. Our leverage ratio, when calculated using consolidated debt to total consolidated capital, was 26.5 percent at September 30, 2010 compared to 24.8 percent at December 31, 2009, reflecting the issuance of $400.0 million of senior notes during the third quarter of 2010. Our leverage ratio, when calculated excluding the non-recourse debt and associated capital of Tailwind Holdings, LLC (Tailwind Holdings) and Northwind Holdings, LLC (Northwind Holdings), was 23.3 percent at September 30, 2010 compared to 20.5 percent at December 31, 2009. The cash and marketable securities at our holding companies equaled approximately $1.027 billion at the end of the third quarter of 2010, compared to $915 million at the end of 2009. During the third quarter and first nine months of 2010, we repurchased 9.5 million and 15.2 million shares of Unum Groups common stock under our $500.0 million share repurchase program, at a year-to-date cost of approximately $327.5 million.
Net investment income was higher in the third quarter and first nine months of 2010 relative to the same periods last year due primarily to continued growth in the level of invested assets and higher bond call premiums. We recognized in earnings a net realized investment gain of $1.1 million and a loss of $2.8 million in the third quarter and first nine months of 2010 compared to gains of $14.9 million and $37.6 million in the third quarter and first nine months of 2009. Included in these amounts were other-than-temporary impairment losses on fixed maturity securities of $10.4 million in the first nine months of 2010, compared to losses of $31.5 million and $160.1 million in the third quarter and first nine months of last year. Of these amounts, all were recognized in earnings other than a gain of $2.1 million and a loss of $4.8 million in the third quarter and first nine months of 2009, which were recognized in other comprehensive income.
Also recognized in earnings through realized investment gains and losses was the change in the fair value of an embedded derivative in a modified coinsurance arrangement. During the third quarter and first nine months of 2010, changes in the fair value of this embedded derivative resulted in a realized gain of $1.6 million and a realized loss of $3.7 million, compared to gains of $44.4 million and $208.1 million in the third quarter and first nine months of 2009. Gains and losses on this embedded derivative result primarily from changes in credit spreads in the overall investment market.
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Unum Group has a market cap of $7.48 billion; its shares were traded at around $22.82 with a P/E ratio of 8.7 and P/S ratio of 0.7. The dividend yield of Unum Group stocks is 1.6%. Unum Group had an annual average earning growth of 16.1% over the past 5 years.UNM is in the portfolios of NWQ Managers of NWQ Investment Management Co, Jeff Auxier of Auxier Focus Fund, Pioneer Investments, Richard Snow of Snow Capital Management, L.P., John Buckingham of Al Frank Asset Management, Inc., HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Steven Cohen of SAC Capital Advisors, David Dreman of Dreman Value Management, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jeremy Grantham of GMO LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:
Our investment portfolio continues to perform well, with an increase of 6.7 percent and 6.3 percent in net investment income relative to the third quarter and first nine months of 2009. The net unrealized gain on our fixed maturity securities was $5.1 billion at the end of the third quarter of 2010, compared to a gain of $2.0 billion at year end 2009 and $2.2 billion at the end of the third quarter of 2009.We believe our capital and financial position are very strong. At the end of the third quarter of 2010, the risk-based capital ratio for our traditional U.S. insurance subsidiaries, calculated on a weighted average basis using the NAIC Company Action Level formula, was approximately 410 percent, compared to 382 percent at the end of 2009. Our leverage ratio, when calculated using consolidated debt to total consolidated capital, was 26.5 percent at September 30, 2010 compared to 24.8 percent at December 31, 2009, reflecting the issuance of $400.0 million of senior notes during the third quarter of 2010. Our leverage ratio, when calculated excluding the non-recourse debt and associated capital of Tailwind Holdings, LLC (Tailwind Holdings) and Northwind Holdings, LLC (Northwind Holdings), was 23.3 percent at September 30, 2010 compared to 20.5 percent at December 31, 2009. The cash and marketable securities at our holding companies equaled approximately $1.027 billion at the end of the third quarter of 2010, compared to $915 million at the end of 2009. During the third quarter and first nine months of 2010, we repurchased 9.5 million and 15.2 million shares of Unum Groups common stock under our $500.0 million share repurchase program, at a year-to-date cost of approximately $327.5 million.
Net investment income was higher in the third quarter and first nine months of 2010 relative to the same periods last year due primarily to continued growth in the level of invested assets and higher bond call premiums. We recognized in earnings a net realized investment gain of $1.1 million and a loss of $2.8 million in the third quarter and first nine months of 2010 compared to gains of $14.9 million and $37.6 million in the third quarter and first nine months of 2009. Included in these amounts were other-than-temporary impairment losses on fixed maturity securities of $10.4 million in the first nine months of 2010, compared to losses of $31.5 million and $160.1 million in the third quarter and first nine months of last year. Of these amounts, all were recognized in earnings other than a gain of $2.1 million and a loss of $4.8 million in the third quarter and first nine months of 2009, which were recognized in other comprehensive income.
Also recognized in earnings through realized investment gains and losses was the change in the fair value of an embedded derivative in a modified coinsurance arrangement. During the third quarter and first nine months of 2010, changes in the fair value of this embedded derivative resulted in a realized gain of $1.6 million and a realized loss of $3.7 million, compared to gains of $44.4 million and $208.1 million in the third quarter and first nine months of 2009. Gains and losses on this embedded derivative result primarily from changes in credit spreads in the overall investment market.
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