Starmount to expand Unum and Colonial Life dental products and operations in CA
BATON ROUGE, La. – November 5, 2018 – Starmount Life Insurance Company is at the center of efforts to build out the Unum (NYSE: UNM) dental portfolio to include dental health maintenance organization (DHMO) products in California.
Unum, through a wholly-owned subsidiary, acquired Jaimini Health, Inc., the California DHMO doing business as PrimeCare Dental Plan (PrimeCare), with efforts led by Starmount.
In 2016, Unum acquired Starmount to expand its presence in the U.S. dental market, making the Baton Rouge headquarters its dental and vision benefits hub in the U.S. Within the last two years, Starmount has supported both Unum and Colonial Life in their respective launches of preferred provider organization dental and vision plans across the country.
PrimeCare will join the Unum family as an extension of the Starmount operation, serving as a DHMO satellite office. DHMO plans will be marketed under the Unum brand, and a product launch is estimated for the third quarter of 2019. Details of a product launch under the Colonial Life brand will be announced once plans are finalized.
“The market response to Unum and Colonial Life’s dental and vision launches exceeded our expectations,” said Starmount President and CEO Erich Sternberg. “We want that momentum to continue with a proprietary DHMO solution in California. Through the PrimeCare acquisition, we will be able to offer our California clients more competitive benefit choices and our best-in-class service.”
Terms of the sale were not disclosed. The transaction will not alter Unum’s earnings or capital management outlook for 2018, nor does it change Unum’s overall capital management strategy of investing in its business while also returning capital to shareholders through share repurchases and dividends. It is expected to be neutral to accretive to Unum’s earnings per share in 2018.
Unum Group (www.unum.com) is a leading provider of financial protection benefits in the United States and the United Kingdom. Its primary businesses are Unum US, Colonial Life and Unum UK. Unum’s portfolio includes disability, life, dental, vision, accident and critical illness coverage, which help protect millions of working people and their families. Unum also provides stop-loss coverage to help self-insured employers protect against unanticipated medical costs. Unum acquired dental and vision carrier Starmount in 2016, and launched its new Unum Dental and Vision products in the U.S. during the first quarter of 2017. The company reported revenues of $11.3 billion in 2017 and provided nearly $7 billion in benefits.
Safe Harbor Statement
Certain information in this news release constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those not based on historical information, but rather relate to a company’s future operations, strategies, financial results, or other developments, may include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions, and speak only as of the date made. These forward-looking statements, including statements regarding the potential timing for introducing newly branded DHMO products, are not guarantees of future results and are subject to numerous assumptions, risks, and uncertainties, many of which are beyond Unum Group’s control. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those projected or contemplated in the forward-looking statements.
These risks and uncertainties include, but are not limited to, Unum Group’s ability to effectively manage growth and integrate acquisitions. Given the risks and uncertainties inherent in forward-looking statements, any of the forward-looking statements in this news release could be incorrect and investors are cautioned not to place undue reliance on them.
For further discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A. “Risk Factors” of Unum Group’s annual report on Form 10-K for the year ended December 31, 2017 and its subsequently filed quarterly reports on Form 10-Q. The forward-looking statements in this news release are being made as of the date of this news release, and the company expressly disclaims any obligation to update or revise any forward-looking statement contained herein, even if made available on its website or otherwise.
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