Problems including lawsuits, stock losses and negative publicity have created a humbler UnumProvident Corp. that is emerging from its financial troubles as a stronger company, the company’s chief executive says.
The nation’s largest disability insurance company has been cleansed of the “arrogance” brought about by market dominance, said Tom Watjen, president and CEO.
Watjen stepped in two years ago to replaced ousted president and CEO J. Harold Chandler.
A difficult merger, unexpected financial losses and steep stock drops were compounded by accusations and probes over whether the Portland, Maine company withheld payments on valid claims.
The rebuilding process, which included the sale of some business units and restructuring of debt, is complete, he told the Portland Press Herald.
UnumProvident’s financial problems came about in part because the company became “a little too enamored of growth,” and focused on increasing the number of clients rather than on whether the policies themselves were making money, Watjen said.
Watjen said he is proud of having turned things around without mass layoffs. UnumProvident has about 12,000 employees, including 3,600 in Portland.
As for attitude, he said the company has been cleansed of the “arrogance” caused by market dominance. “It was very much a topdown, ‘don’t really care what the employees think attitude,'” he said.
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