Friday, March 7, 2014
From staff and news service reports
Unum’s quarterly profit falls, but operating income rises
Insurance provider Unum Group’s third-quarter profit and revenue fell compared with a year earlier, the company reported Monday.
Still, the company’s after-tax operating income, which many investors consider the true gauge of an insurance company’s health, showed improvement compared with third-quarter 2012.
Unum, which is based in Tennessee but has a large corporate presence in Portland, reported net income of $205.7 million for the third quarter, down 11 percent from $230.2 million for the same period of 2012. That translates to earnings per share of 78 cents for the most recent quarter, compared with 83 cents per share for the same period a year earlier.
However, Unum’s after-tax operating income was 85 cents per share, up from 80 cents per share in third-quarter 2012.
The company reported revenue of $2.57 billion for the quarter, down about 2 percent from $2.61 billion for the third quarter of 2012.
Unum’s lower net income was primarily the result of investment losses and other liabilities totaling $18.9 million in the third quarter.
SAC Capital to admit fraud, pay penalty of $1.8 billion
SAC Capital Advisors will plead guilty to criminal fraud charges, stop investing money for others and pay $1.8 billion – the largest financial penalty in history for insider trading – to resolve criminal and civil claims against the hedge fund giant, the U.S. government said.
In a letter to judges presiding over Manhattan cases, the government said that the “proposed global resolution” of the criminal and civil cases against SAC Capital Advisors and related companies also includes an agreement that SAC will cease operating as an investment adviser and will not accept any additional funds from third-party investors.
Drugmaker agrees to pay $2.2 billion to settle charges
Johnson & Johnson has agreed to pay more than $2.2 billion to resolve criminal and civil allegations that the company promoted powerful psychiatric drugs for unapproved uses in children, seniors and disabled patients, the Department of Justice said Monday.
Justice Department officials alleged that J&J used illegal marketing tactics and kickbacks to persuade physicians and pharmacists to prescribe Risperdal and Invega, both antipsychotic drugs, and Natrecor, used to treat heart failure.
The agreement is the third-largest settlement with a drugmaker in U.S. history.