Pomerantz LLP is investigating claims on behalf of investors of Unum Group ("Unum" or the "Company"). The investigation concerns whether Unum and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 1, 2018, after the market closed, Unum issued a press release entitled "Unum Group Reports First Quarter 2018 Results," reporting in part that its first quarter 2018 loss ratio for its long-term care business was 96.6%, compared to only 88.6% for the first-quarter of 2017. On May 2, 2018, during a conference call discussing Unum's quarterly results, Unum's Chief Financial Officer John F. McGarry stated, in relevant part, that "[b]enefits experience this quarter was driven by new claim incidence that ran much higher than expected" and that "the higher loss ratio this quarter was negatively impacted by a lower level of policy terminations." McGarry further advised investors that "[w]e continue to experience a high level of volatility in this line and expect it will continue in the future."
Following these disclosures, Unum's share price fell $8.12, or 16.95%, to close at $39.78 on May 2, 2018.