Unum Group (UNM, Financial) filed Quarterly Report for the period ended 2010-03-31.
Unum Group has a market cap of $7.83 billion; its shares were traded at around $23.57 with a P/E ratio of 9.2 and P/S ratio of 0.8. The dividend yield of Unum Group stocks is 1.4%.UNM is in the portfolios of Richard Snow of Snow Capital Management, L.P., John Buckingham of Al Frank Asset Management, Inc., HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, NWQ Managers of NWQ Investment Management Co, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC, Kenneth Fisher of Fisher Asset Management, LLC, Dodge & Cox.
We believe our capital and financial position are very strong. At the end of the first 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 397 percent, compared to 382 percent at the end of 2009. 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 20.0 percent at March 31, 2010 compared to 20.5 percent at December 31, 2009. Our leverage ratio, when calculated using consolidated debt to total consolidated capital, was 24.1 percent at March 31, 2010 compared to 24.8 percent at December 31, 2009. The cash and marketable securities at our holding companies equaled approximately $775 million at the end of the first quarter of 2010, compared to $915 million at the end of 2009.
Net investment income was higher in the first quarter of 2010 relative to the prior year first quarter due to continued growth in the level of invested assets, higher bond call premiums, an increase in our earned yield, and a favorable foreign exchange rate. We recognized in earnings a net realized investment gain of $25.6 million in the first quarter of 2010 compared to a loss of $64.6 million in the first quarter of 2009. During the first quarter of 2010 and 2009, we recognized other-than-temporary impairment losses of $0.2 million and $73.6 million, respectively, related to fixed maturity securities, all of which were recognized in earnings.
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 first quarter of 2010, changes in the fair value of this embedded derivative resulted in a realized gain of $18.3 million compared to a gain of $23.6 million in the first quarter 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 $7.83 billion; its shares were traded at around $23.57 with a P/E ratio of 9.2 and P/S ratio of 0.8. The dividend yield of Unum Group stocks is 1.4%.UNM is in the portfolios of Richard Snow of Snow Capital Management, L.P., John Buckingham of Al Frank Asset Management, Inc., HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, NWQ Managers of NWQ Investment Management Co, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC, Kenneth Fisher of Fisher Asset Management, LLC, Dodge & Cox.
Highlight of Business Operations:
Our investment portfolio continues to perform well, with a 6.9 percent increase in net investment income relative to the first quarter of 2009. The net unrealized gain on our fixed maturity securities was $2.5 billion at the end of the first quarter of 2010, compared to a gain of $2.0 billion at year end 2009 and a loss of $2.5 billion at the end of the first quarter of 2009.We believe our capital and financial position are very strong. At the end of the first 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 397 percent, compared to 382 percent at the end of 2009. 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 20.0 percent at March 31, 2010 compared to 20.5 percent at December 31, 2009. Our leverage ratio, when calculated using consolidated debt to total consolidated capital, was 24.1 percent at March 31, 2010 compared to 24.8 percent at December 31, 2009. The cash and marketable securities at our holding companies equaled approximately $775 million at the end of the first quarter of 2010, compared to $915 million at the end of 2009.
Net investment income was higher in the first quarter of 2010 relative to the prior year first quarter due to continued growth in the level of invested assets, higher bond call premiums, an increase in our earned yield, and a favorable foreign exchange rate. We recognized in earnings a net realized investment gain of $25.6 million in the first quarter of 2010 compared to a loss of $64.6 million in the first quarter of 2009. During the first quarter of 2010 and 2009, we recognized other-than-temporary impairment losses of $0.2 million and $73.6 million, respectively, related to fixed maturity securities, all of which were recognized in earnings.
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 first quarter of 2010, changes in the fair value of this embedded derivative resulted in a realized gain of $18.3 million compared to a gain of $23.6 million in the first quarter 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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