Unum Group's board of directors authorizes $1 billion share repurchase program

Rhea-AI Summary

Unum Group (NYSE: UNM) has announced a significant $1 billion share repurchase program, authorized by its board of directors. The program is set to commence on August 1, 2024, replacing the current repurchase program, which will be terminated on July 31, 2024. This strategic move allows Unum to repurchase its common stock from time to time, with the timing and amount of repurchases to be determined by management based on market conditions and other factors.

The repurchases may be executed through various methods, including open market transactions, privately negotiated deals, accelerated share repurchase programs, or other means compliant with federal securities laws. Importantly, the board retains the flexibility to suspend, modify, or terminate the program at any time, ensuring adaptability to changing market dynamics.

Positive

• Authorization of a substantial $1 billion share repurchase program
• Potential to increase shareholder value and earnings per share
• Flexibility in repurchase methods, including open market and privately negotiated transactions
• Board's ability to adjust the program based on market conditions

Negative

• Reduction in cash reserves that could be used for other investments or operations
• Potential limitation on financial flexibility for future strategic initiatives

News Market Reaction

+5.99%

1 alert

+5.99% News Effect

On the day this news was published, UNM gained 5.99%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHATTANOOGA, Tenn. , July 30, 2024 /PRNewswire/ -- Unum Group (NYSE: UNM) announced today that its board of directors has approved a share repurchase program authorizing the company to repurchase up to $1 billion of its common stock from time to time beginning on August 1, 2024. The board of directors also authorized the termination of the company's current share repurchase program as of July 31, 2024.

The timing and amount of share repurchases will be determined by management based on its evaluation of market conditions and other considerations. Repurchases may be made in open market transactions at prevailing prices, in privately negotiated transactions (including accelerated share repurchase programs), pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, or by other means in accordance with federal securities laws. The program may be suspended, modified, or terminated by the board at any time.

Forward-Looking Statements
Certain statements in this release 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, 2023. 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 Group
Unum Group (NYSE: UNM), a leading international provider of workplace benefits and services, has been helping workers and their families thrive for more than 175 years. Through its Unum and Colonial Life brands, the company offers disability, life, accident, critical illness, dental, vision and stop-loss insurance; leave and absence management support; and behavioral health services. In 2023, Unum Group reported revenues of more than $12 billion and paid approximately $8 billion in benefits. The Fortune 500 company is recognized as one of the World's Most Ethical Companies by Ethisphere®.

Visit the Unum Group newsroom for more information, and connect with us on LinkedIn, Facebook, and Instagram.

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SOURCE Unum Group

FAQ

When does Unum Group's new $1 billion share repurchase program begin?

Unum Group's new $1 billion share repurchase program is set to begin on August 1, 2024.

What happens to Unum Group's current share repurchase program?

Unum Group's current share repurchase program will be terminated on July 31, 2024, just before the new program begins.

How will Unum Group (UNM) execute its share repurchases?

Unum Group may execute share repurchases through open market transactions, privately negotiated deals, accelerated share repurchase programs, or other means in accordance with federal securities laws.

Can Unum Group's board of directors modify the $1 billion share repurchase program?

Yes, Unum Group's board of directors can suspend, modify, or terminate the share repurchase program at any time based on market conditions or other factors.