Unum Group
Statistical Supplement Third Quarter 2016
TABLE OF CONTENTS
(in millions of dollars, except share data and where noted)
Interim Results are Unaudited
| Page | |||
| See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and a reconciliation of our non-GAAP financial measures. | |||
| N.M. = not a meaningful percentage | |||
Unum Group Financial Highlights
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Consolidated U.S. GAAP Results¹ | |||||||||||||||||||||||
| Premium Income | $ | 2,089.4 | $ | 2,020.8 | $ | 6,258.5 | $ | 6,044.6 | $ | 8,082.4 | $ | 7,797.2 | |||||||||||
| Operating Revenue | $ | 2,752.3 | $ | 2,684.4 | $ | 8,254.2 | $ | 8,050.0 | $ | 10,775.1 | $ | 10,508.4 | |||||||||||
| Net Realized Investment Gain (Loss) | 11.0 | (26.6 | ) | (4.2 | ) | (41.1 | ) | (43.8 | ) | 16.1 | |||||||||||||
| Revenue | $ | 2,763.3 | $ | 2,657.8 | $ | 8,250.0 | $ | 8,008.9 | $ | 10,731.3 | $ | 10,524.5 | |||||||||||
| Net Income | $ | 236.0 | $ | 203.8 | $ | 683.4 | $ | 641.0 | $ | 867.1 | $ | 402.1 | |||||||||||
| Net Income Per Common Share: | |||||||||||||||||||||||
| Basic | $ | 1.01 | $ | 0.83 | $ | 2.89 | $ | 2.58 | $ | 3.51 | $ | 1.57 | |||||||||||
| Assuming Dilution | $ | 1.01 | $ | 0.83 | $ | 2.88 | $ | 2.57 | $ | 3.50 | $ | 1.57 | |||||||||||
| Assets | $ | 63,905.1 | $ | 61,478.8 | $ | 60,563.6 | $ | 62,422.5 | |||||||||||||||
| Stockholders' Equity | $ | 9,361.2 | $ | 8,581.1 | $ | 8,663.9 | $ | 8,521.9 | |||||||||||||||
| Operating Return on Equity | |||||||||||||||||||||||
| Unum US | 15.0 | % | 13.6 | % | 14.6 | % | 13.2 | % | 13.3 | % | 13.3 | % | |||||||||||
| Unum UK | 20.7 | % | 15.8 | % | 19.5 | % | 16.4 | % | 18.0 | % | 18.3 | % | |||||||||||
| Colonial Life | 17.3 | % | 16.3 | % | 17.5 | % | 16.7 | % | 16.6 | % | 16.7 | % | |||||||||||
| Core Operating Segments | 16.0 | % | 14.4 | % | 15.7 | % | 14.2 | % | 14.5 | % | 14.5 | % | |||||||||||
| Consolidated | 11.3 | % | 11.1 | % | 11.3 | % | 11.3 | % | 11.3 | % | 11.3 | % | |||||||||||
| Traditional U.S. Life Insurance Companies' Statutory Results² | |||||||||||||||||||||||
| Net Gain from Operations, After Tax | $ | 211.5 | $ | 187.9 | $ | 624.0 | $ | 506.8 | $ | 689.2 | $ | 623.9 | |||||||||||
| Net Realized Investment Gain (Loss), After Tax | (7.7 | ) | (7.5 | ) | (21.4 | ) | (8.3 | ) | (35.5 | ) | 5.0 | ||||||||||||
| Net Income | $ | 203.8 | $ | 180.4 | $ | 602.6 | $ | 498.5 | $ | 653.7 | $ | 628.9 | |||||||||||
| Capital and Surplus | $ | 3,475.7 | $ | 3,448.8 | $ | 3,470.3 | $ | 3,507.2 | |||||||||||||||
| Weighted Average Risk-based Capital Ratio | ~ 395% | ~ 400% | ~ 400% | ~ 400% | |||||||||||||||||||
1 Generally Accepted Accounting Principles
2 Our traditional U.S. life insurance companies are Provident Life and Accident Insurance Company, Unum Life Insurance Company of America , The Paul Revere Life Insurance Company, Colonial Life & Accident Insurance Company, Provident Life and Casualty Insurance Company, First Unum Life Insurance Company, Unum Insurance Company and Starmount Life Insurance Company.
1
Unum Group Capital Metrics
| 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||||||||||||
| (in millions) | per share | (in millions) | per share | (in millions) | per share | (in millions) | per share | ||||||||||||||||||||||||
| Total Stockholders' Equity (Book Value) | $ | 9,361.2 | $ | 40.33 | $ | 8,581.1 | $ | 35.25 | $ | 8,663.9 | $ | 35.96 | $ | 8,521.9 | $ | 33.78 | |||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Net Unrealized Gain on Securities | 803.2 | 3.47 | 158.6 | 0.65 | 204.3 | 0.84 | 290.3 | 1.15 | |||||||||||||||||||||||
| Net Gain on Cash Flow Hedges | 335.2 | 1.44 | 405.1 | 1.66 | 378.0 | 1.57 | 391.0 | 1.55 | |||||||||||||||||||||||
| Subtotal | 8,222.8 | 35.42 | 8,017.4 | 32.94 | 8,081.6 | 33.55 | 7,840.6 | 31.08 | |||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | (305.2 | ) | (1.32 | ) | (146.6 | ) | (0.60 | ) | (173.6 | ) | (0.72 | ) | (113.4 | ) | (0.45 | ) | |||||||||||||||
| Subtotal | 8,528.0 | 36.74 | 8,164.0 | 33.54 | 8,255.2 | 34.27 | 7,954.0 | 31.53 | |||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Unrecognized Pension and Postretirement Benefit Costs | (382.5 | ) | (1.65 | ) | (395.1 | ) | (1.62 | ) | (392.6 | ) | (1.63 | ) | (401.5 | ) | (1.59 | ) | |||||||||||||||
| Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income | $ | 8,910.5 | $ | 38.39 | $ | 8,559.1 | $ | 35.16 | $ | 8,647.8 | $ | 35.90 | $ | 8,355.5 | $ | 33.12 | |||||||||||||||
| Dividends Paid | $ | 136.2 | $ | 0.570 | $ | 129.2 | $ | 0.515 | $ | 174.2 | $ | 0.700 | $ | 159.4 | $ | 0.620 | |||||||||||||||
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Shares Repurchased (millions) | 2.9 | 3.2 | 9.4 | 9.4 | 12.3 | 8.7 | |||||||||||||||||
Cost of Shares Repurchased (millions)(1) | $ | 100.2 | $ | 115.0 | $ | 300.3 | $ | 326.2 | $ | 426.7 | $ | 300.6 | |||||||||||
| Price (UNM closing price on last trading day of period) | $ | 35.31 | $ | 32.08 | $ | 33.29 | $ | 34.88 | |||||||||||||||
| Leverage Ratio | 27.2 | % | 24.8 | % | 25.5 | % | 25.2 | % | |||||||||||||||
| Holding Company Cash and Marketable Securities | $ | 598 | $ | 484 | $ | 475 | $ | 575 | |||||||||||||||
(1) Includes commissions of $0.1 million and $0.2 million for the three and nine month period ended September 30, 2016, respectively, $0.1 million for the nine month period ended September 30, 2015, a de minimis amount for the three month period ended September 30, 2015, and $0.3 million and $0.1 million for the years ended December 31, 2015 and 2014, respectively.
2
Unum Group Ratings
| AM Best | Fitch | Moody's | S&P | ||||
| Outlook | Stable | Stable | Stable | Stable | |||
| Issuer Credit Ratings | bbb | BBB | Baa2 | BBB | |||
| Financial Strength Ratings | |||||||
| Provident Life and Accident | A | A | A2 | A | |||
| Unum Life of America | A | A | A2 | A | |||
| Colonial Life & Accident | A | A | A2 | A | |||
| Paul Revere Life | A | A | A2 | A | |||
| Starmount Life Insurance Company | A- | NR | NR | NR | |||
| Unum Limited | NR | NR | NR | A- | |||
NR = not rated
3
Unum Group Consolidated Statements of Income
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Premium Income | $ | 2,089.4 | $ | 2,020.8 | $ | 6,258.5 | $ | 6,044.6 | $ | 8,082.4 | $ | 7,797.2 | |||||||||||
| Net Investment Income | 611.4 | 612.1 | 1,841.1 | 1,844.8 | 2,481.2 | 2,492.2 | |||||||||||||||||
| Net Realized Investment Gain (Loss) | 11.0 | (26.6 | ) | (4.2 | ) | (41.1 | ) | (43.8 | ) | 16.1 | |||||||||||||
| Other Income | 51.5 | 51.5 | 154.6 | 160.6 | 211.5 | 219.0 | |||||||||||||||||
| Total Revenue | 2,763.3 | 2,657.8 | 8,250.0 | 8,008.9 | 10,731.3 | 10,524.5 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 1,742.6 | 1,690.9 | 5,205.9 | 5,047.6 | 6,782.8 | 7,310.8 | |||||||||||||||||
| Commissions | 256.8 | 246.3 | 771.7 | 747.8 | 996.3 | 935.3 | |||||||||||||||||
| Interest and Debt Expense - Non-recourse Debt | 1.7 | 1.6 | 5.1 | 5.0 | 6.6 | 7.3 | |||||||||||||||||
| Interest and Debt Expense - All Other Debt | 43.5 | 36.5 | 121.1 | 108.9 | 146.2 | 160.2 | |||||||||||||||||
| Deferral of Acquisition Costs | (147.8 | ) | (139.4 | ) | (447.0 | ) | (425.1 | ) | (569.7 | ) | (524.0 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 118.8 | 117.0 | 377.2 | 375.4 | 482.3 | 440.8 | |||||||||||||||||
| Other Expenses | 415.6 | 406.0 | 1,239.5 | 1,227.6 | 1,648.5 | 1,652.1 | |||||||||||||||||
| Total Benefits and Expenses | 2,431.2 | 2,358.9 | 7,273.5 | 7,087.2 | 9,493.0 | 9,982.5 | |||||||||||||||||
| Income Before Income Tax | 332.1 | 298.9 | 976.5 | 921.7 | 1,238.3 | 542.0 | |||||||||||||||||
| Income Tax Expense | 96.1 | 95.1 | 293.1 | 280.7 | 371.2 | 139.9 | |||||||||||||||||
| Net Income | $ | 236.0 | $ | 203.8 | $ | 683.4 | $ | 641.0 | $ | 867.1 | $ | 402.1 | |||||||||||
| Average Weighted Shares Outstanding | |||||||||||||||||||||||
| Basic | 233.8 | 245.4 | 236.7 | 248.4 | 247.0 | 255.5 | |||||||||||||||||
| Assuming Dilution | 234.2 | 246.3 | 237.1 | 249.2 | 247.9 | 256.7 | |||||||||||||||||
| Actual Number of Shares Outstanding | 232.1 | 243.4 | 240.9 | 252.3 | |||||||||||||||||||
4
Unum Group Sales Data for Unum US Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | % Change | 9/30/2016 | 9/30/2015 | % Change | 12/31/2015 | 12/31/2014 | ||||||||||||||||||||||
| Sales by Product | |||||||||||||||||||||||||||||
| Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||
| Group Long-term Disability | $ | 24.3 | $ | 34.3 | (29.2 | )% | $ | 110.1 | $ | 123.5 | (10.9 | )% | $ | 239.7 | $ | 223.6 | |||||||||||||
| Group Short-term Disability | 11.7 | 15.2 | (23.0 | ) | 52.8 | 71.6 | (26.3 | ) | 119.7 | 118.8 | |||||||||||||||||||
| Group Life and AD&D | 31.1 | 34.1 | (8.8 | ) | 127.2 | 125.7 | 1.2 | 250.1 | 264.8 | ||||||||||||||||||||
| Subtotal | 67.1 | 83.6 | (19.7 | ) | 290.1 | 320.8 | (9.6 | ) | 609.5 | 607.2 | |||||||||||||||||||
| Supplemental and Voluntary | |||||||||||||||||||||||||||||
| Individual Disability | 16.4 | 21.2 | (22.6 | ) | 47.7 | 46.5 | 2.6 | 67.5 | 56.8 | ||||||||||||||||||||
| Voluntary Benefits | 45.6 | 46.2 | (1.3 | ) | 216.3 | 217.4 | (0.5 | ) | 262.6 | 238.1 | |||||||||||||||||||
| Dental and Vision | 4.5 | — | — | 4.5 | — | — | — | — | |||||||||||||||||||||
| Subtotal | 66.5 | 67.4 | (1.3 | ) | 268.5 | 263.9 | 1.7 | 330.1 | 294.9 | ||||||||||||||||||||
| Total Sales | $ | 133.6 | $ | 151.0 | (11.5 | ) | $ | 558.6 | $ | 584.7 | (4.5 | ) | $ | 939.6 | $ | 902.1 | |||||||||||||
| Sales by Market Sector | |||||||||||||||||||||||||||||
| Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||
| Core Market (< 2,000 lives) | $ | 52.8 | $ | 61.2 | (13.7 | )% | $ | 196.4 | $ | 228.5 | (14.0 | )% | $ | 405.4 | $ | 401.7 | |||||||||||||
| Large Case Market | 14.3 | 22.4 | (36.2 | ) | 93.7 | 92.3 | 1.5 | 204.1 | 205.5 | ||||||||||||||||||||
| Subtotal | 67.1 | 83.6 | (19.7 | ) | 290.1 | 320.8 | (9.6 | ) | 609.5 | 607.2 | |||||||||||||||||||
| Supplemental and Voluntary | 66.5 | 67.4 | (1.3 | ) | 268.5 | 263.9 | 1.7 | 330.1 | 294.9 | ||||||||||||||||||||
| Total Sales | $ | 133.6 | $ | 151.0 | (11.5 | ) | $ | 558.6 | $ | 584.7 | (4.5 | ) | $ | 939.6 | $ | 902.1 | |||||||||||||
5
Unum Group Sales Data for Unum UK Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||||||||
| (in millions of dollars) | 9/30/2016 | 9/30/2015 | % Change | 9/30/2016 | 9/30/2015 | % Change | 12/31/2015 | 12/31/2014 | |||||||||||||||||||||
| Sales by Product | |||||||||||||||||||||||||||||
| Group Long-term Disability | $ | 11.6 | $ | 11.8 | (1.7 | )% | $ | 36.4 | $ | 36.8 | (1.1 | )% | $ | 53.4 | $ | 57.4 | |||||||||||||
| Group Life | 6.1 | 6.7 | (9.0 | ) | 16.2 | 16.9 | (4.1 | ) | 25.7 | 23.8 | |||||||||||||||||||
| Supplemental | 1.7 | 1.2 | 41.7 | 8.2 | 3.2 | 156.3 | 5.0 | 3.9 | |||||||||||||||||||||
| Total Sales | $ | 19.4 | $ | 19.7 | (1.5 | ) | $ | 60.8 | $ | 56.9 | 6.9 | $ | 84.1 | $ | 85.1 | ||||||||||||||
| Sales by Market Sector | |||||||||||||||||||||||||||||
| Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||
| Core Market (< 500 lives) | $ | 10.9 | $ | 12.9 | (15.5 | )% | $ | 30.6 | $ | 29.9 | 2.3 | % | $ | 44.3 | $ | 42.5 | |||||||||||||
| Large Case Market | 6.8 | 5.6 | 21.4 | 22.0 | 23.8 | (7.6 | ) | 34.8 | 38.7 | ||||||||||||||||||||
| Subtotal | 17.7 | 18.5 | (4.3 | ) | 52.6 | 53.7 | (2.0 | ) | 79.1 | 81.2 | |||||||||||||||||||
| Supplemental | 1.7 | 1.2 | 41.7 | 8.2 | 3.2 | 156.3 | 5.0 | 3.9 | |||||||||||||||||||||
| Total Sales | $ | 19.4 | $ | 19.7 | (1.5 | ) | $ | 60.8 | $ | 56.9 | 6.9 | $ | 84.1 | $ | 85.1 | ||||||||||||||
| (in millions of pounds) | |||||||||||||||||||||||||||||
| Sales by Product | |||||||||||||||||||||||||||||
| Group Long-term Disability | £ | 8.8 | £ | 7.7 | 14.3 | % | £ | 26.1 | £ | 24.1 | 8.3 | % | £ | 35.0 | £ | 35.1 | |||||||||||||
| Group Life | 4.7 | 4.3 | 9.3 | 11.7 | 11.0 | 6.4 | 16.8 | 14.4 | |||||||||||||||||||||
| Supplemental | 1.3 | 0.8 | 62.5 | 5.8 | 2.1 | 176.2 | 3.3 | 2.4 | |||||||||||||||||||||
| Total Sales | £ | 14.8 | £ | 12.8 | 15.6 | £ | 43.6 | £ | 37.2 | 17.2 | £ | 55.1 | £ | 51.9 | |||||||||||||||
| Sales by Market Sector | |||||||||||||||||||||||||||||
| Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||
| Core Market (< 500 lives) | £ | 8.4 | £ | 8.3 | 1.2 | % | £ | 22.1 | £ | 19.4 | 13.9 | % | £ | 29.0 | £ | 25.8 | |||||||||||||
| Large Case Market | 5.1 | 3.7 | 37.8 | 15.7 | 15.7 | — | 22.8 | 23.7 | |||||||||||||||||||||
| Subtotal | 13.5 | 12.0 | 12.5 | 37.8 | 35.1 | 7.7 | 51.8 | 49.5 | |||||||||||||||||||||
| Supplemental | 1.3 | 0.8 | 62.5 | 5.8 | 2.1 | 176.2 | 3.3 | 2.4 | |||||||||||||||||||||
| Total Sales | £ | 14.8 | £ | 12.8 | 15.6 | £ | 43.6 | £ | 37.2 | 17.2 | £ | 55.1 | £ | 51.9 | |||||||||||||||
5. 1
Unum Group Sales Data for Colonial Life Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | % Change | 9/30/2016 | 9/30/2015 | % Change | 12/31/2015 | 12/31/2014 | ||||||||||||||||||||||
| Sales by Product | |||||||||||||||||||||||||||||
| Accident, Sickness, and Disability | $ | 67.0 | $ | 59.9 | 11.9 | % | $ | 195.4 | $ | 169.6 | 15.2 | % | $ | 276.1 | $ | 260.7 | |||||||||||||
| Life | 20.9 | 18.6 | 12.4 | 59.6 | 53.1 | 12.2 | 85.6 | 78.8 | |||||||||||||||||||||
| Cancer and Critical Illness | 16.3 | 16.8 | (3.0 | ) | 47.6 | 45.9 | 3.7 | 76.8 | 70.6 | ||||||||||||||||||||
| Total Sales | $ | 104.2 | $ | 95.3 | 9.3 | $ | 302.6 | $ | 268.6 | 12.7 | $ | 438.5 | $ | 410.1 | |||||||||||||||
| Sales by Market Sector | |||||||||||||||||||||||||||||
| Commercial | |||||||||||||||||||||||||||||
| Core Market (< 1,000 lives) | $ | 67.7 | $ | 60.1 | 12.6 | % | $ | 201.0 | $ | 182.4 | 10.2 | % | $ | 290.8 | $ | 275.6 | |||||||||||||
| Large Case Market | 10.6 | 11.7 | (9.4 | ) | 32.9 | 28.9 | 13.8 | 54.2 | 53.2 | ||||||||||||||||||||
| Subtotal | 78.3 | 71.8 | 9.1 | 233.9 | 211.3 | 10.7 | 345.0 | 328.8 | |||||||||||||||||||||
| Public Sector | 25.9 | 23.5 | 10.2 | 68.7 | 57.3 | 19.9 | 93.5 | 81.3 | |||||||||||||||||||||
| Total Sales | $ | 104.2 | $ | 95.3 | 9.3 | $ | 302.6 | $ | 268.6 | 12.7 | $ | 438.5 | $ | 410.1 | |||||||||||||||
5. 2
Unum Group Consolidated Balance Sheets
| September 30 | December 31 | ||||||
| 2016 | 2015 | ||||||
| As Adjusted | |||||||
| Assets | |||||||
| Investments | |||||||
| Fixed Maturity Securities | $ | 46,315.5 | $ | 43,354.4 | |||
| Mortgage Loans | 1,970.4 | 1,883.6 | |||||
| Policy Loans | 3,432.8 | 3,395.4 | |||||
| Other Long-term Investments | 634.3 | 583.0 | |||||
| Short-term Investments | 755.6 | 807.3 | |||||
| Total Investments | 53,108.6 | 50,023.7 | |||||
| Other Assets | |||||||
| Cash and Bank Deposits | 87.9 | 112.9 | |||||
| Accounts and Premiums Receivable | 1,625.9 | 1,598.4 | |||||
| Reinsurance Recoverable | 4,845.6 | 4,725.1 | |||||
| Accrued Investment Income | 694.4 | 702.8 | |||||
| Deferred Acquisition Costs | 2,048.4 | 2,008.5 | |||||
| Goodwill | 336.8 | 230.9 | |||||
| Property and Equipment | 509.7 | 523.9 | |||||
| Other Assets | 647.8 | 637.4 | |||||
| Total Assets | $ | 63,905.1 | $ | 60,563.6 | |||
| Liabilities | |||||||
| Policy and Contract Benefits | $ | 1,483.5 | $ | 1,484.6 | |||
| Reserves for Future Policy and Contract Benefits | 45,745.1 | 43,540.6 | |||||
| Unearned Premiums | 427.8 | 384.2 | |||||
| Other Policyholders’ Funds | 1,619.6 | 1,674.6 | |||||
| Income Tax Payable | — | 6.0 | |||||
| Deferred Income Tax | 358.5 | 91.8 | |||||
| Short-term Debt | — | 352.0 | |||||
| Long-term Debt - Non-recourse | 269.7 | 324.0 | |||||
| Long-term Debt - All Other | 2,750.1 | 2,125.4 | |||||
| Payables for Collateral on Investments | 440.1 | 415.4 | |||||
| Other Liabilities | 1,449.5 | 1,501.1 | |||||
| Total Liabilities | 54,543.9 | 51,899.7 | |||||
| Stockholders’ Equity | |||||||
| Common Stock | 30.3 | 30.3 | |||||
| Additional Paid-in Capital | 2,263.0 | 2,247.2 | |||||
| Accumulated Other Comprehensive Income | 450.7 | 16.1 | |||||
| Retained Earnings | 8,542.4 | 7,995.2 | |||||
| Treasury Stock | (1,925.2 | ) | (1,624.9 | ) | |||
| Total Stockholders’ Equity | 9,361.2 | 8,663.9 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 63,905.1 | $ | 60,563.6 | |||
6
Unum Group Deferred Acquisition Costs by Segment
| Unum US | Unum UK | Colonial Life | Consolidated | ||||||||||||
| Balances at December 31, 2014 | $ | 1,096.5 | $ | 30.4 | $ | 774.4 | $ | 1,901.3 | |||||||
| Capitalization | 307.3 | 9.6 | 252.8 | 569.7 | |||||||||||
| Amortization | (272.3 | ) | (11.3 | ) | (198.7 | ) | (482.3 | ) | |||||||
| Adjustment Related to Unrealized Investment Gains and Losses | 4.9 | — | 16.5 | 21.4 | |||||||||||
| Foreign Currency | — | (1.6 | ) | — | (1.6 | ) | |||||||||
| Balances at December 31, 2015 | 1,136.4 | 27.1 | 845.0 | 2,008.5 | |||||||||||
| Capitalization | 239.8 | 6.1 | 201.1 | 447.0 | |||||||||||
| Amortization | (214.0 | ) | (7.4 | ) | (155.8 | ) | (377.2 | ) | |||||||
| Adjustment Related to Unrealized Investment Gains and Losses | (0.7 | ) | — | (26.0 | ) | (26.7 | ) | ||||||||
| Foreign Currency | — | (3.2 | ) | — | (3.2 | ) | |||||||||
| Balances at September 30, 2016 | $ | 1,161.5 | $ | 22.6 | $ | 864.3 | $ | 2,048.4 | |||||||
6. 1
Unum Group Balance Sheets by Segment - September 30, 2016
| Unum US | |||||||||||||||||||||||||||||||||||
| Group Disability | Group Life and Accidental Death & Dismemberment | Supplemental and Voluntary | Total Unum US | Unum UK | Colonial Life | Closed Block | Corporate | Consolidated | |||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Investments | $ | 9,117.9 | $ | 2,388.8 | $ | 4,642.3 | $ | 16,149.0 | $ | 3,099.9 | $ | 2,858.7 | $ | 28,866.0 | $ | 2,135.0 | $ | 53,108.6 | |||||||||||||||||
| Deferred Acquisition Costs | 87.6 | 72.3 | 1,001.5 | 1,161.4 | 22.7 | 864.3 | — | — | 2,048.4 | ||||||||||||||||||||||||||
| Goodwill | — | — | 271.0 | 271.0 | 38.2 | 27.6 | — | — | 336.8 | ||||||||||||||||||||||||||
| All Other | 455.4 | 155.9 | 273.1 | 884.4 | 235.2 | 189.9 | 5,955.9 | 1,145.9 | 8,411.3 | ||||||||||||||||||||||||||
| Total Assets | $ | 9,660.9 | $ | 2,617.0 | $ | 6,187.9 | $ | 18,465.8 | $ | 3,396.0 | $ | 3,940.5 | $ | 34,821.9 | $ | 3,280.9 | $ | 63,905.1 | |||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Reserves and Policyholder Benefits | $ | 7,775.2 | $ | 1,718.9 | $ | 3,904.3 | $ | 13,398.4 | $ | 2,582.0 | $ | 2,322.1 | $ | 30,973.5 | $ | — | $ | 49,276.0 | |||||||||||||||||
| Debt | — | — | — | ��� | — | — | 269.7 | 2,750.1 | 3,019.8 | ||||||||||||||||||||||||||
| All Other | 284.3 | 72.6 | 358.0 | 714.9 | 80.8 | 284.9 | (52.2 | ) | 1,219.7 | 2,248.1 | |||||||||||||||||||||||||
| Total Liabilities | 8,059.5 | 1,791.5 | 4,262.3 | 14,113.3 | 2,662.8 | 2,607.0 | 31,191.0 | 3,969.8 | 54,543.9 | ||||||||||||||||||||||||||
| Allocated Stockholders' Equity | |||||||||||||||||||||||||||||||||||
| Other Allocated Stockholders' Equity | 1,568.4 | 775.6 | 1,764.7 | 4,108.7 | 600.0 | 1,208.2 | 3,119.8 | (813.9 | ) | 8,222.8 | |||||||||||||||||||||||||
| Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges | 33.0 | 49.9 | 160.9 | 243.8 | 133.2 | 125.3 | 511.1 | 125.0 | 1,138.4 | ||||||||||||||||||||||||||
| Total Allocated Stockholders' Equity | 1,601.4 | 825.5 | 1,925.6 | 4,352.5 | 733.2 | 1,333.5 | 3,630.9 | (688.9 | ) | 9,361.2 | |||||||||||||||||||||||||
| Total Liabilities and Allocated Stockholders' Equity | $ | 9,660.9 | $ | 2,617.0 | $ | 6,187.9 | $ | 18,465.8 | $ | 3,396.0 | $ | 3,940.5 | $ | 34,821.9 | $ | 3,280.9 | $ | 63,905.1 | |||||||||||||||||
Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with our target capital levels for regulatory and rating agency purposes. We modify this formula periodically to recognize changes in the views of capital requirements.
6. 2
Unum Group Balance Sheets by Segment - December 31, 2015 - As Adjusted
| Unum US | |||||||||||||||||||||||||||||||||||
| Group Disability | Group Life and Accidental Death & Dismemberment | Supplemental and Voluntary | Total Unum US | Unum UK | Colonial Life | Closed Block | Corporate | Consolidated | |||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Investments | $ | 8,761.1 | $ | 2,724.2 | $ | 4,119.8 | $ | 15,605.1 | $ | 3,131.2 | $ | 2,650.5 | $ | 27,005.7 | $ | 1,631.2 | $ | 50,023.7 | |||||||||||||||||
| Deferred Acquisition Costs | 79.3 | 66.9 | 990.2 | 1,136.4 | 27.1 | 845.0 | — | — | 2,008.5 | ||||||||||||||||||||||||||
| Goodwill | — | — | 187.6 | 187.6 | 43.3 | — | — | — | 230.9 | ||||||||||||||||||||||||||
| All Other | 599.7 | 160.6 | 553.0 | 1,313.3 | 230.8 | 281.3 | 5,995.2 | 479.9 | 8,300.5 | ||||||||||||||||||||||||||
| Total Assets | $ | 9,440.1 | $ | 2,951.7 | $ | 5,850.6 | $ | 18,242.4 | $ | 3,432.4 | $ | 3,776.8 | $ | 33,000.9 | $ | 2,111.1 | $ | 60,563.6 | |||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Reserves and Policyholder Benefits | $ | 7,575.1 | $ | 1,735.0 | $ | 3,704.8 | $ | 13,014.9 | $ | 2,649.5 | $ | 2,221.7 | $ | 29,197.9 | $ | — | $ | 47,084.0 | |||||||||||||||||
| Debt | — | — | — | — | — | — | 332.5 | 2,468.9 | 2,801.4 | ||||||||||||||||||||||||||
| All Other | 370.0 | 131.6 | 371.4 | 873.0 | 71.2 | 258.6 | (33.7 | ) | 845.2 | 2,014.3 | |||||||||||||||||||||||||
| Total Liabilities | 7,945.1 | 1,866.6 | 4,076.2 | 13,887.9 | 2,720.7 | 2,480.3 | 29,496.7 | 3,314.1 | 51,899.7 | ||||||||||||||||||||||||||
| Allocated Stockholders' Equity | |||||||||||||||||||||||||||||||||||
| Other Allocated Stockholders' Equity | 1,488.9 | 1,070.3 | 1,689.9 | 4,249.1 | 652.9 | 1,239.9 | 3,164.0 | (1,224.3 | ) | 8,081.6 | |||||||||||||||||||||||||
| Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges | 6.1 | 14.8 | 84.5 | 105.4 | 58.8 | 56.6 | 340.2 | 21.3 | 582.3 | ||||||||||||||||||||||||||
| Total Allocated Stockholders' Equity | 1,495.0 | 1,085.1 | 1,774.4 | 4,354.5 | 711.7 | 1,296.5 | 3,504.2 | (1,203.0 | ) | 8,663.9 | |||||||||||||||||||||||||
| Total Liabilities and Allocated Stockholders' Equity | $ | 9,440.1 | $ | 2,951.7 | $ | 5,850.6 | $ | 18,242.4 | $ | 3,432.4 | $ | 3,776.8 | $ | 33,000.9 | $ | 2,111.1 | $ | 60,563.6 | |||||||||||||||||
6. 3
Unum Group Financial Results by Segment
We measure and analyze our segment performance on the basis of "operating revenue" and "operating income" or "operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and non-operating retirement-related gains or losses as specified in the following pages. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | % Change | 9/30/2016 | 9/30/2015 | % Change | ||||||||||||||||
| Premium Income | |||||||||||||||||||||
| Unum US | $ | 1,315.0 | $ | 1,241.8 | 5.9 | % | $ | 3,915.7 | $ | 3,708.4 | 5.6 | % | |||||||||
| Unum UK | 127.3 | 144.6 | (12.0 | ) | 407.4 | 425.8 | (4.3 | ) | |||||||||||||
| Colonial Life | 354.1 | 333.1 | 6.3 | 1,056.7 | 1,001.2 | 5.5 | |||||||||||||||
| Closed Block | 293.0 | 301.3 | (2.8 | ) | 878.7 | 909.2 | (3.4 | ) | |||||||||||||
| 2,089.4 | 2,020.8 | 3.4 | 6,258.5 | 6,044.6 | 3.5 | ||||||||||||||||
| Net Investment Income | |||||||||||||||||||||
| Unum US | 207.3 | 214.3 | (3.3 | ) | 622.4 | 645.0 | (3.5 | ) | |||||||||||||
| Unum UK | 28.5 | 28.0 | 1.8 | 89.3 | 90.1 | (0.9 | ) | ||||||||||||||
| Colonial Life | 36.1 | 35.9 | 0.6 | 105.7 | 109.8 | (3.7 | ) | ||||||||||||||
| Closed Block | 334.1 | 327.5 | 2.0 | 1,008.6 | 979.6 | 3.0 | |||||||||||||||
| Corporate | 5.4 | 6.4 | (15.6 | ) | 15.1 | 20.3 | (25.6 | ) | |||||||||||||
| 611.4 | 612.1 | (0.1 | ) | 1,841.1 | 1,844.8 | (0.2 | ) | ||||||||||||||
| Other Income | |||||||||||||||||||||
| Unum US | 28.7 | 28.1 | 2.1 | 85.6 | 90.4 | (5.3 | ) | ||||||||||||||
| Unum UK | — | — | — | 0.2 | — | 100.0 | |||||||||||||||
| Colonial Life | 0.4 | 0.1 | N.M. | 1.0 | 0.1 | N.M. | |||||||||||||||
| Closed Block | 21.5 | 21.5 | — | 65.3 | 67.5 | (3.3 | ) | ||||||||||||||
| Corporate | 0.9 | 1.8 | (50.0 | ) | 2.5 | 2.6 | (3.8 | ) | |||||||||||||
| 51.5 | 51.5 | — | 154.6 | 160.6 | (3.7 | ) | |||||||||||||||
| Total Operating Revenue | |||||||||||||||||||||
| Unum US | 1,551.0 | 1,484.2 | 4.5 | 4,623.7 | 4,443.8 | 4.0 | |||||||||||||||
| Unum UK | 155.8 | 172.6 | (9.7 | ) | 496.9 | 515.9 | (3.7 | ) | |||||||||||||
| Colonial Life | 390.6 | 369.1 | 5.8 | 1,163.4 | 1,111.1 | 4.7 | |||||||||||||||
| Closed Block | 648.6 | 650.3 | (0.3 | ) | 1,952.6 | 1,956.3 | (0.2 | ) | |||||||||||||
| Corporate | 6.3 | 8.2 | (23.2 | ) | 17.6 | 22.9 | (23.1 | ) | |||||||||||||
| $ | 2,752.3 | $ | 2,684.4 | 2.5 | $ | 8,254.2 | $ | 8,050.0 | 2.5 | ||||||||||||
7
Unum Group Financial Results by Segment - Continued
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | % Change | 9/30/2016 | 9/30/2015 | % Change | ||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||
| Unum US | $ | 1,320.0 | $ | 1,265.5 | 4.3 | % | $ | 3,949.6 | $ | 3,808.0 | 3.7 | % | |||||||||
| Unum UK | 127.6 | 139.9 | (8.8 | ) | 398.2 | 412.3 | (3.4 | ) | |||||||||||||
| Colonial Life | 311.6 | 292.8 | 6.4 | 929.1 | 879.6 | 5.6 | |||||||||||||||
| Closed Block | 620.0 | 622.6 | (0.4 | ) | 1,857.7 | 1,865.3 | (0.4 | ) | |||||||||||||
| Corporate | 47.9 | 35.1 | 36.5 | 126.7 | 113.1 | 12.0 | |||||||||||||||
| 2,427.1 | 2,355.9 | 3.0 | 7,261.3 | 7,078.3 | 2.6 | ||||||||||||||||
| Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss), and Non-operating Retirement-related Loss | |||||||||||||||||||||
| Unum US | 231.0 | 218.7 | 5.6 | 674.1 | 635.8 | 6.0 | |||||||||||||||
| Unum UK | 28.2 | 32.7 | (13.8 | ) | 98.7 | 103.6 | (4.7 | ) | |||||||||||||
| Colonial Life | 79.0 | 76.3 | 3.5 | 234.3 | 231.5 | 1.2 | |||||||||||||||
| Closed Block | 28.6 | 27.7 | 3.2 | 94.9 | 91.0 | 4.3 | |||||||||||||||
| Corporate | (41.6 | ) | (26.9 | ) | (54.6 | ) | (109.1 | ) | (90.2 | ) | (21.0 | ) | |||||||||
| 325.2 | 328.5 | (1.0 | ) | 992.9 | 971.7 | 2.2 | |||||||||||||||
| Income Tax Expense | 93.9 | 105.5 | (11.0 | ) | 299.1 | 301.3 | (0.7 | ) | |||||||||||||
| Income Before Net Realized Investment Gain (Loss) and Non-operating Retirement-related Loss, Net of Tax | 231.3 | 223.0 | 3.7 | 693.8 | 670.4 | 3.5 | |||||||||||||||
| Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $3.7; $(9.3); $(1.7); $(17.5)) | 7.3 | (17.3 | ) | 142.2 | (2.5 | ) | (23.6 | ) | 89.4 | ||||||||||||
| Non-operating Retirement-related Loss (net of tax benefit of ($1.5; $1.1; $4.3; $3.1) | (2.6 | ) | (1.9 | ) | (36.8 | ) | (7.9 | ) | (5.8 | ) | (36.2 | ) | |||||||||
| Net Income | $ | 236.0 | $ | 203.8 | 15.8 | $ | 683.4 | $ | 641.0 | 6.6 | |||||||||||
7. 1
Unum Group Quarterly Historical Financial Results by Segment
| 9/30/16 | 6/30/16 | 3/31/16 | 12/31/15 | 9/30/15 | 6/30/15 | 3/31/15 | 12/31/14 | 9/30/14 | |||||||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,315.0 | $ | 1,299.4 | $ | 1,301.3 | $ | 1,251.6 | $ | 1,241.8 | $ | 1,236.4 | $ | 1,230.2 | $ | 1,186.8 | $ | 1,162.7 | |||||||||||||||||
| Unum UK | 127.3 | 140.8 | 139.3 | 150.4 | 144.6 | 142.2 | 139.0 | 148.9 | 152.6 | ||||||||||||||||||||||||||
| Colonial Life | 354.1 | 351.4 | 351.2 | 337.4 | 333.1 | 335.9 | 332.2 | 321.1 | 319.4 | ||||||||||||||||||||||||||
| Closed Block | 293.0 | 290.0 | 295.7 | 298.4 | 301.3 | 303.0 | 304.9 | 311.1 | 312.5 | ||||||||||||||||||||||||||
| 2,089.4 | 2,081.6 | 2,087.5 | 2,037.8 | 2,020.8 | 2,017.5 | 2,006.3 | 1,967.9 | 1,947.2 | |||||||||||||||||||||||||||
| Net Investment Income | |||||||||||||||||||||||||||||||||||
| Unum US | 207.3 | 207.7 | 207.4 | 220.3 | 214.3 | 215.7 | 215.0 | 223.2 | 214.4 | ||||||||||||||||||||||||||
| Unum UK | 28.5 | 34.0 | 26.8 | 34.8 | 28.0 | 38.6 | 23.5 | 38.7 | 34.4 | ||||||||||||||||||||||||||
| Colonial Life | 36.1 | 35.6 | 34.0 | 35.6 | 35.9 | 36.9 | 37.0 | 37.6 | 35.5 | ||||||||||||||||||||||||||
| Closed Block | 334.1 | 341.1 | 333.4 | 340.4 | 327.5 | 331.7 | 320.4 | 323.0 | 317.2 | ||||||||||||||||||||||||||
| Corporate | 5.4 | 4.9 | 4.8 | 5.3 | 6.4 | 7.8 | 6.1 | 10.2 | 9.8 | ||||||||||||||||||||||||||
| 611.4 | 623.3 | 606.4 | 636.4 | 612.1 | 630.7 | 602.0 | 632.7 | 611.3 | |||||||||||||||||||||||||||
| Other Income | |||||||||||||||||||||||||||||||||||
| Unum US | 28.7 | 27.9 | 29.0 | 28.8 | 28.1 | 31.4 | 30.9 | 30.7 | 30.2 | ||||||||||||||||||||||||||
| Unum UK | — | 0.2 | — | — | — | — | — | (0.1 | ) | — | |||||||||||||||||||||||||
| Colonial Life | 0.4 | 0.3 | 0.3 | — | 0.1 | — | — | — | 0.1 | ||||||||||||||||||||||||||
| Closed Block | 21.5 | 21.4 | 22.4 | 21.8 | 21.5 | 22.8 | 23.2 | 22.3 | 23.4 | ||||||||||||||||||||||||||
| Corporate | 0.9 | 1.3 | 0.3 | 0.3 | 1.8 | 0.5 | 0.3 | 2.8 | 0.9 | ||||||||||||||||||||||||||
| 51.5 | 51.1 | 52.0 | 50.9 | 51.5 | 54.7 | 54.4 | 55.7 | 54.6 | |||||||||||||||||||||||||||
| Total Operating Revenue | |||||||||||||||||||||||||||||||||||
| Unum US | 1,551.0 | 1,535.0 | 1,537.7 | 1,500.7 | 1,484.2 | 1,483.5 | 1,476.1 | 1,440.7 | 1,407.3 | ||||||||||||||||||||||||||
| Unum UK | 155.8 | 175.0 | 166.1 | 185.2 | 172.6 | 180.8 | 162.5 | 187.5 | 187.0 | ||||||||||||||||||||||||||
| Colonial Life | 390.6 | 387.3 | 385.5 | 373.0 | 369.1 | 372.8 | 369.2 | 358.7 | 355.0 | ||||||||||||||||||||||||||
| Closed Block | 648.6 | 652.5 | 651.5 | 660.6 | 650.3 | 657.5 | 648.5 | 656.4 | 653.1 | ||||||||||||||||||||||||||
| Corporate | 6.3 | 6.2 | 5.1 | 5.6 | 8.2 | 8.3 | 6.4 | 13.0 | 10.7 | ||||||||||||||||||||||||||
| $ | 2,752.3 | $ | 2,756.0 | $ | 2,745.9 | $ | 2,725.1 | $ | 2,684.4 | $ | 2,702.9 | $ | 2,662.7 | $ | 2,656.3 | $ | 2,613.1 | ||||||||||||||||||
8
Unum Group Quarterly Historical Financial Results by Segment - Continued
| 9/30/16 | 6/30/16 | 3/31/16 | 12/31/15 | 9/30/15 | 6/30/15 | 3/31/15 | 12/31/14 | 9/30/14 | |||||||||||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,320.0 | $ | 1,307.8 | $ | 1,321.8 | $ | 1,286.5 | $ | 1,265.5 | $ | 1,280.7 | $ | 1,261.8 | $ | 1,231.2 | $ | 1,195.2 | |||||||||||||||||
| Unum UK | 127.6 | 138.1 | 132.5 | 148.2 | 139.9 | 142.5 | 129.9 | 149.3 | 153.5 | ||||||||||||||||||||||||||
| Colonial Life | 311.6 | 309.4 | 308.1 | 295.4 | 292.8 | 295.2 | 291.6 | 284.7 | 284.0 | ||||||||||||||||||||||||||
| Closed Block | 620.0 | 619.9 | 617.8 | 632.5 | 622.6 | 620.9 | 621.8 | 1,325.2 | 627.4 | ||||||||||||||||||||||||||
| Corporate | 47.9 | 41.9 | 36.9 | 40.2 | 35.1 | 41.7 | 36.3 | 37.4 | 35.8 | ||||||||||||||||||||||||||
| 2,427.1 | 2,417.1 | 2,417.1 | 2,402.8 | 2,355.9 | 2,381.0 | 2,341.4 | 3,027.8 | 2,295.9 | |||||||||||||||||||||||||||
| Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss), and Non-operating Retirement-related Loss | |||||||||||||||||||||||||||||||||||
| Unum US | 231.0 | 227.2 | 215.9 | 214.2 | 218.7 | 202.8 | 214.3 | 209.5 | 212.1 | ||||||||||||||||||||||||||
| Unum UK | 28.2 | 36.9 | 33.6 | 37.0 | 32.7 | 38.3 | 32.6 | 38.2 | 33.5 | ||||||||||||||||||||||||||
| Colonial Life | 79.0 | 77.9 | 77.4 | 77.6 | 76.3 | 77.6 | 77.6 | 74.0 | 71.0 | ||||||||||||||||||||||||||
| Closed Block | 28.6 | 32.6 | 33.7 | 28.1 | 27.7 | 36.6 | 26.7 | (668.8 | ) | 25.7 | |||||||||||||||||||||||||
| Corporate | (41.6 | ) | (35.7 | ) | (31.8 | ) | (34.6 | ) | (26.9 | ) | (33.4 | ) | (29.9 | ) | (24.4 | ) | (25.1 | ) | |||||||||||||||||
| 325.2 | 338.9 | 328.8 | 322.3 | 328.5 | 321.9 | 321.3 | (371.5 | ) | 317.2 | ||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | 93.9 | 103.2 | 102.0 | 91.7 | 105.5 | 99.3 | 96.5 | (143.4 | ) | 98.1 | |||||||||||||||||||||||||
| Income (Loss) Before Net Realized Investment Gain (Loss) and Non-operating Retirement-related Loss, Net of Tax | 231.3 | 235.7 | 226.8 | 230.6 | 223.0 | 222.6 | 224.8 | (228.1 | ) | 219.1 | |||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) | 11.0 | 5.3 | (20.5 | ) | (2.7 | ) | (26.6 | ) | 0.8 | (15.3 | ) | (17.3 | ) | 1.2 | |||||||||||||||||||||
| Tax Expense (Benefit) on Net Realized Investment Gain (Loss) | 3.7 | 1.5 | (6.9 | ) | (0.2 | ) | (9.3 | ) | (2.9 | ) | (5.3 | ) | (6.1 | ) | 0.3 | ||||||||||||||||||||
| Non-operating Retirement-related Loss | (4.1 | ) | (4.0 | ) | (4.1 | ) | (3.0 | ) | (3.0 | ) | (2.9 | ) | (3.0 | ) | (65.8 | ) | (1.4 | ) | |||||||||||||||||
| Tax Benefit on Non-operating Retirement-related Loss | (1.5 | ) | (1.3 | ) | (1.5 | ) | (1.0 | ) | (1.1 | ) | (0.9 | ) | (1.1 | ) | (22.9 | ) | (0.5 | ) | |||||||||||||||||
| Net Income (Loss) | $ | 236.0 | $ | 236.8 | $ | 210.6 | $ | 226.1 | $ | 203.8 | $ | 224.3 | $ | 212.9 | $ | (282.2 | ) | $ | 219.1 | ||||||||||||||||
| Net Income (Loss) Per Common Share - Assuming Dilution | $ | 1.01 | $ | 1.00 | $ | 0.88 | $ | 0.93 | $ | 0.83 | $ | 0.90 | $ | 0.84 | $ | (1.12 | ) | $ | 0.86 | ||||||||||||||||
8. 1
Unum Group Financial Results for Unum US Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | $ | 1,315.0 | $ | 1,241.8 | $ | 3,915.7 | $ | 3,708.4 | $ | 4,960.0 | $ | 4,659.7 | |||||||||||
| Net Investment Income | 207.3 | 214.3 | 622.4 | 645.0 | 865.3 | 878.9 | |||||||||||||||||
| Other Income | 28.7 | 28.1 | 85.6 | 90.4 | 119.2 | 122.1 | |||||||||||||||||
| Total | 1,551.0 | 1,484.2 | 4,623.7 | 4,443.8 | 5,944.5 | 5,660.7 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 912.1 | 866.6 | 2,712.7 | 2,586.3 | 3,476.7 | 3,288.1 | |||||||||||||||||
| Commissions | 145.4 | 137.4 | 439.8 | 421.8 | 562.2 | 528.7 | |||||||||||||||||
| Deferral of Acquisition Costs | (76.2 | ) | (74.1 | ) | (239.8 | ) | (230.7 | ) | (307.3 | ) | (292.7 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 64.3 | 65.0 | 214.0 | 216.4 | 272.3 | 248.1 | |||||||||||||||||
| Other Expenses | 274.4 | 270.6 | 822.9 | 814.2 | 1,090.6 | 1,043.6 | |||||||||||||||||
| Total | 1,320.0 | 1,265.5 | 3,949.6 | 3,808.0 | 5,094.5 | 4,815.8 | |||||||||||||||||
| Operating Income | $ | 231.0 | $ | 218.7 | $ | 674.1 | $ | 635.8 | $ | 850.0 | $ | 844.9 | |||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 69.4 | % | 69.8 | % | 69.3 | % | 69.7 | % | 70.1 | % | 70.6 | % | |||||||||||
| Other Expense Ratio | 20.9 | % | 21.8 | % | 21.0 | % | 22.0 | % | 22.0 | % | 22.4 | % | |||||||||||
| Operating Income Ratio | 17.6 | % | 17.6 | % | 17.2 | % | 17.1 | % | 17.1 | % | 18.1 | % | |||||||||||
9
Unum Group Financial Results for Unum US Group Disability
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Group Long-term Disability | $ | 428.1 | $ | 414.3 | $ | 1,291.6 | $ | 1,229.0 | $ | 1,644.7 | $ | 1,553.5 | |||||||||||
| Group Short-term Disability | 155.5 | 153.2 | 469.2 | 452.5 | 607.4 | 558.1 | |||||||||||||||||
| Total Premium Income | 583.6 | 567.5 | 1,760.8 | 1,681.5 | 2,252.1 | 2,111.6 | |||||||||||||||||
| Net Investment Income | 120.1 | 121.7 | 360.7 | 371.9 | 496.5 | 515.9 | |||||||||||||||||
| Other Income | 22.8 | 21.6 | 68.2 | 70.0 | 92.9 | 91.0 | |||||||||||||||||
| Total | 726.5 | 710.8 | 2,189.7 | 2,123.4 | 2,841.5 | 2,718.5 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 458.5 | 457.1 | 1,404.0 | 1,367.9 | 1,834.0 | 1,746.4 | |||||||||||||||||
| Commissions | 44.2 | 42.4 | 134.3 | 128.9 | 172.2 | 161.2 | |||||||||||||||||
| Deferral of Acquisition Costs | (11.6 | ) | (10.3 | ) | (35.3 | ) | (31.8 | ) | (43.2 | ) | (40.2 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 9.0 | 8.4 | 27.0 | 25.2 | 33.7 | 26.3 | |||||||||||||||||
| Other Expenses | 141.0 | 142.4 | 429.5 | 426.9 | 572.4 | 550.0 | |||||||||||||||||
| Total | 641.1 | 640.0 | 1,959.5 | 1,917.1 | 2,569.1 | 2,443.7 | |||||||||||||||||
| Operating Income | $ | 85.4 | $ | 70.8 | $ | 230.2 | $ | 206.3 | $ | 272.4 | $ | 274.8 | |||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 78.6 | % | 80.5 | % | 79.7 | % | 81.3 | % | 81.4 | % | 82.7 | % | |||||||||||
| Other Expense Ratio | 24.2 | % | 25.1 | % | 24.4 | % | 25.4 | % | 25.4 | % | 26.0 | % | |||||||||||
| Operating Income Ratio | 14.6 | % | 12.5 | % | 13.1 | % | 12.3 | % | 12.1 | % | 13.0 | % | |||||||||||
| Persistency: | |||||||||||||||||||||||
| Group Long-term Disability | 90.5 | % | 92.1 | % | 92.1 | % | 90.6 | % | |||||||||||||||
| Group Short-term Disability | 87.4 | % | 87.9 | % | 88.1 | % | 89.6 | % | |||||||||||||||
9. 1
Unum Group Financial Results for Unum US Group Life and Accidental Death & Dismemberment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Group Life | $ | 353.4 | $ | 336.5 | $ | 1,053.6 | $ | 1,007.5 | $ | 1,347.4 | $ | 1,262.3 | |||||||||||
| Accidental Death & Dismemberment | 35.3 | 32.1 | 104.8 | 98.0 | 131.7 | 125.9 | |||||||||||||||||
| Total Premium Income | 388.7 | 368.6 | 1,158.4 | 1,105.5 | 1,479.1 | 1,388.2 | |||||||||||||||||
| Net Investment Income | 28.1 | 34.7 | 85.5 | 102.0 | 135.1 | 135.2 | |||||||||||||||||
| Other Income | 1.1 | 0.5 | 3.3 | 1.5 | 2.1 | 1.4 | |||||||||||||||||
| Total | 417.9 | 403.8 | 1,247.2 | 1,209.0 | 1,616.3 | 1,524.8 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 282.2 | 261.8 | 832.5 | 792.5 | 1,061.6 | 975.8 | |||||||||||||||||
| Commissions | 31.5 | 30.0 | 94.8 | 90.5 | 121.2 | 113.3 | |||||||||||||||||
| Deferral of Acquisition Costs | (8.9 | ) | (7.9 | ) | (27.4 | ) | (24.7 | ) | (33.3 | ) | (31.3 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 7.3 | 6.5 | 22.0 | 19.6 | 26.2 | 21.4 | |||||||||||||||||
| Other Expenses | 52.4 | 53.2 | 159.6 | 160.5 | 215.7 | 205.2 | |||||||||||||||||
| Total | 364.5 | 343.6 | 1,081.5 | 1,038.4 | 1,391.4 | 1,284.4 | |||||||||||||||||
| Operating Income | $ | 53.4 | $ | 60.2 | $ | 165.7 | $ | 170.6 | $ | 224.9 | $ | 240.4 | |||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 72.6 | % | 71.0 | % | 71.9 | % | 71.7 | % | 71.8 | % | 70.3 | % | |||||||||||
| Other Expense Ratio | 13.5 | % | 14.4 | % | 13.8 | % | 14.5 | % | 14.6 | % | 14.8 | % | |||||||||||
| Operating Income Ratio | 13.7 | % | 16.3 | % | 14.3 | % | 15.4 | % | 15.2 | % | 17.3 | % | |||||||||||
| Persistency: | |||||||||||||||||||||||
| Group Life | 90.3 | % | 88.5 | % | 89.2 | % | 90.8 | % | |||||||||||||||
| Accidental Death & Dismemberment | 90.4 | % | 89.5 | % | 89.8 | % | 91.1 | % | |||||||||||||||
9. 2
Unum Group Financial Results for Unum US Supplemental and Voluntary
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Individual Disability | $ | 125.6 | $ | 119.6 | $ | 374.4 | $ | 355.9 | $ | 478.9 | $ | 466.1 | |||||||||||
| Voluntary Benefits | 197.1 | 186.1 | 602.1 | 565.5 | 749.9 | 693.8 | |||||||||||||||||
| Dental and Vision | 20.0 | — | 20.0 | — | — | — | |||||||||||||||||
| Total Premium Income | 342.7 | 305.7 | 996.5 | 921.4 | 1,228.8 | 1,159.9 | |||||||||||||||||
| Net Investment Income | 59.1 | 57.9 | 176.2 | 171.1 | 233.7 | 227.8 | |||||||||||||||||
| Other Income | 4.8 | 6.0 | 14.1 | 18.9 | 24.2 | 29.7 | |||||||||||||||||
| Total | 406.6 | 369.6 | 1,186.8 | 1,111.4 | 1,486.7 | 1,417.4 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 171.4 | 147.7 | 476.2 | 425.9 | 581.1 | 565.9 | |||||||||||||||||
| Commissions | 69.7 | 65.0 | 210.7 | 202.4 | 268.8 | 254.2 | |||||||||||||||||
| Deferral of Acquisition Costs | (55.7 | ) | (55.9 | ) | (177.1 | ) | (174.2 | ) | (230.8 | ) | (221.2 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 48.0 | 50.1 | 165.0 | 171.6 | 212.4 | 200.4 | |||||||||||||||||
| Other Expenses | 81.0 | 75.0 | 233.8 | 226.8 | 302.5 | 288.4 | |||||||||||||||||
| Total | 314.4 | 281.9 | 908.6 | 852.5 | 1,134.0 | 1,087.7 | |||||||||||||||||
| Operating Income | $ | 92.2 | $ | 87.7 | $ | 278.2 | $ | 258.9 | $ | 352.7 | $ | 329.7 | |||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratios: | |||||||||||||||||||||||
| Individual Disability | 52.6 | % | 52.3 | % | 52.5 | % | 50.9 | % | 51.8 | % | 51.6 | % | |||||||||||
| Voluntary Benefits | 46.5 | % | 45.8 | % | 44.2 | % | 43.3 | % | 44.4 | % | 46.9 | % | |||||||||||
| Dental and Vision | 68.0 | % | — | % | 68.0 | % | — | % | — | % | — | % | |||||||||||
| Other Expense Ratio | 23.6 | % | 24.5 | % | 23.5 | % | 24.6 | % | 24.6 | % | 24.9 | % | |||||||||||
| Operating Income Ratio | 26.9 | % | 28.7 | % | 27.9 | % | 28.1 | % | 28.7 | % | 28.4 | % | |||||||||||
| Persistency: | |||||||||||||||||||||||
| Individual Disability | 91.2 | % | 90.2 | % | 90.3 | % | 90.0 | % | |||||||||||||||
| Voluntary Benefits | 76.8 | % | 75.3 | % | 75.9 | % | 77.6 | % | |||||||||||||||
| Dental and Vision | 84.5 | % | — | % | — | % | — | % | |||||||||||||||
9. 3
Unum Group Financial Results for Unum UK Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Group Long-term Disability | $ | 85.5 | $ | 100.6 | $ | 274.1 | $ | 296.5 | $ | 397.4 | $ | 418.9 | |||||||||||
| Group Life | 24.9 | 29.7 | 80.9 | 90.6 | 121.5 | 133.2 | |||||||||||||||||
| Supplemental | 16.9 | 14.3 | 52.4 | 38.7 | 57.3 | 55.1 | |||||||||||||||||
| Total Premium Income | 127.3 | 144.6 | 407.4 | 425.8 | 576.2 | 607.2 | |||||||||||||||||
| Net Investment Income | 28.5 | 28.0 | 89.3 | 90.1 | 124.9 | 151.0 | |||||||||||||||||
| Other Income | — | — | 0.2 | — | — | — | |||||||||||||||||
| Total | 155.8 | 172.6 | 496.9 | 515.9 | 701.1 | 758.2 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 91.3 | 98.0 | 284.8 | 289.5 | 394.8 | 431.0 | |||||||||||||||||
| Commissions | 9.2 | 11.3 | 27.9 | 33.6 | 41.8 | 42.8 | |||||||||||||||||
| Deferral of Acquisition Costs | (2.1 | ) | (2.6 | ) | (6.1 | ) | (7.2 | ) | (9.6 | ) | (10.5 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 2.3 | 3.2 | 7.4 | 8.8 | 11.3 | 12.5 | |||||||||||||||||
| Other Expenses | 26.9 | 30.0 | 84.2 | 87.6 | 122.2 | 134.6 | |||||||||||||||||
| Total | 127.6 | 139.9 | 398.2 | 412.3 | 560.5 | 610.4 | |||||||||||||||||
| Operating Income | $ | 28.2 | $ | 32.7 | $ | 98.7 | $ | 103.6 | $ | 140.6 | $ | 147.8 | |||||||||||
10
Unum Group Financial Results for Unum UK Segment - Continued
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| (in millions of pounds, except exchange rate) | 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | |||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Group Long-term Disability | £ | 65.1 | £ | 64.9 | £ | 196.7 | £ | 193.4 | £ | 259.9 | £ | 254.4 | |||||||||||
| Group Life | 19.0 | 19.2 | 58.0 | 59.1 | 79.5 | 80.8 | |||||||||||||||||
| Supplemental | 12.8 | 9.2 | 37.6 | 25.3 | 37.5 | 33.4 | |||||||||||||||||
| Total Premium Income | 96.9 | 93.3 | 292.3 | 277.8 | 376.9 | 368.6 | |||||||||||||||||
| Net Investment Income | 21.7 | 18.1 | 64.1 | 58.7 | 81.6 | 91.6 | |||||||||||||||||
| Other Income | — | — | 0.1 | — | — | 0.1 | |||||||||||||||||
| Total | 118.6 | 111.4 | 356.5 | 336.5 | 458.5 | 460.3 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 69.6 | 63.3 | 204.5 | 188.8 | 258.1 | 261.4 | |||||||||||||||||
| Commissions | 7.0 | 7.3 | 20.0 | 22.0 | 27.4 | 26.0 | |||||||||||||||||
| Deferral of Acquisition Costs | (1.6 | ) | (1.7 | ) | (4.4 | ) | (4.7 | ) | (6.3 | ) | (6.4 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 1.7 | 2.0 | 5.3 | 5.7 | 7.4 | 7.6 | |||||||||||||||||
| Other Expenses | 20.4 | 19.4 | 60.4 | 57.1 | 79.9 | 81.9 | |||||||||||||||||
| Total | 97.1 | 90.3 | 285.8 | 268.9 | 366.5 | 370.5 | |||||||||||||||||
| Operating Income | £ | 21.5 | £ | 21.1 | £ | 70.7 | £ | 67.6 | £ | 92.0 | £ | 89.8 | |||||||||||
| Weighted Average Pound/Dollar Exchange Rate | 1.312 | 1.550 | 1.396 | 1.533 | 1.528 | 1.646 | |||||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 71.8 | % | 67.8 | % | 70.0 | % | 68.0 | % | 68.5 | % | 70.9 | % | |||||||||||
| Other Expense Ratio | 21.1 | % | 20.8 | % | 20.7 | % | 20.6 | % | 21.2 | % | 22.2 | % | |||||||||||
| Operating Income Ratio | 22.2 | % | 22.6 | % | 24.2 | % | 24.3 | % | 24.4 | % | 24.4 | % | |||||||||||
| Persistency: | |||||||||||||||||||||||
| Group Long-term Disability | 88.7 | % | 88.5 | % | 89.2 | % | 90.1 | % | |||||||||||||||
| Group Life | 80.1 | % | 80.6 | % | 80.0 | % | 76.0 | % | |||||||||||||||
| Supplemental | 90.5 | % | 88.6 | % | 87.7 | % | 86.6 | % | |||||||||||||||
10. 1
Unum Group Financial Results for Colonial Life Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Accident, Sickness, and Disability | $ | 207.7 | $ | 196.5 | $ | 619.2 | $ | 591.1 | $ | 789.0 | $ | 759.8 | |||||||||||
| Life | 68.0 | 62.5 | 203.4 | 188.1 | 252.4 | 231.8 | |||||||||||||||||
| Cancer and Critical Illness | 78.4 | 74.1 | 234.1 | 222.0 | 297.2 | 282.1 | |||||||||||||||||
| Total Premium Income | 354.1 | 333.1 | 1,056.7 | 1,001.2 | 1,338.6 | 1,273.7 | |||||||||||||||||
| Net Investment Income | 36.1 | 35.9 | 105.7 | 109.8 | 145.4 | 145.5 | |||||||||||||||||
| Other Income | 0.4 | 0.1 | 1.0 | 0.1 | 0.1 | 0.1 | |||||||||||||||||
| Total | 390.6 | 369.1 | 1,163.4 | 1,111.1 | 1,484.1 | 1,419.3 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 182.6 | 170.5 | 541.2 | 510.2 | 683.0 | 660.6 | |||||||||||||||||
| Commissions | 78.7 | 72.7 | 233.3 | 217.8 | 293.5 | 262.3 | |||||||||||||||||
| Deferral of Acquisition Costs | (69.5 | ) | (62.7 | ) | (201.1 | ) | (187.2 | ) | (252.8 | ) | (220.8 | ) | |||||||||||
| Amortization of Deferred Acquisition Costs | 52.2 | 48.8 | 155.8 | 150.2 | 198.7 | 180.2 | |||||||||||||||||
| Other Expenses | 67.6 | 63.5 | 199.9 | 188.6 | 252.6 | 238.0 | |||||||||||||||||
| Total | 311.6 | 292.8 | 929.1 | 879.6 | 1,175.0 | 1,120.3 | |||||||||||||||||
| Operating Income | $ | 79.0 | $ | 76.3 | $ | 234.3 | $ | 231.5 | $ | 309.1 | $ | 299.0 | |||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 51.6 | % | 51.2 | % | 51.2 | % | 51.0 | % | 51.0 | % | 51.9 | % | |||||||||||
| Other Expense Ratio | 19.1 | % | 19.1 | % | 18.9 | % | 18.8 | % | 18.9 | % | 18.7 | % | |||||||||||
| Operating Income Ratio | 22.3 | % | 22.9 | % | 22.2 | % | 23.1 | % | 23.1 | % | 23.5 | % | |||||||||||
| Persistency: | |||||||||||||||||||||||
| Accident, Sickness, and Disability | 75.2 | % | 74.8 | % | 74.8 | % | 75.5 | % | |||||||||||||||
| Life | 84.8 | % | 85.0 | % | 84.9 | % | 85.2 | % | |||||||||||||||
| Cancer and Critical Illness | 82.6 | % | 81.6 | % | 81.2 | % | 83.5 | % | |||||||||||||||
11
Unum Group Financial Results for Closed Block Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Individual Disability | $ | 129.9 | $ | 142.2 | $ | 394.0 | $ | 433.0 | $ | 572.4 | $ | 624.8 | |||||||||||
| Long-term Care | 161.4 | 158.6 | 482.0 | 475.0 | 633.5 | 630.9 | |||||||||||||||||
| All Other | 1.7 | 0.5 | 2.7 | 1.2 | 1.7 | 0.9 | |||||||||||||||||
| Total Premium Income | 293.0 | 301.3 | 878.7 | 909.2 | 1,207.6 | 1,256.6 | |||||||||||||||||
| Net Investment Income | 334.1 | 327.5 | 1,008.6 | 979.6 | 1,320.0 | 1,281.5 | |||||||||||||||||
| Other Income | 21.5 | 21.5 | 65.3 | 67.5 | 89.3 | 91.8 | |||||||||||||||||
| Total | 648.6 | 650.3 | 1,952.6 | 1,956.3 | 2,616.9 | 2,629.9 | |||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 556.6 | 555.8 | 1,667.2 | 1,661.6 | 2,228.3 | 2,931.1 | |||||||||||||||||
| Commissions | 23.5 | 24.9 | 70.7 | 74.6 | 98.8 | 101.5 | |||||||||||||||||
| Interest and Debt Expense | 1.7 | 1.6 | 5.1 | 5.0 | 6.6 | 7.3 | |||||||||||||||||
| Other Expenses | 38.2 | 40.3 | 114.7 | 124.1 | 164.1 | 168.2 | |||||||||||||||||
| Total | 620.0 | 622.6 | 1,857.7 | 1,865.3 | 2,497.8 | 3,208.1 | |||||||||||||||||
| Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses | 28.6 | 27.7 | 94.9 | 91.0 | 119.1 | (578.2 | ) | ||||||||||||||||
| Long-term Care Reserve Increase | — | — | — | — | — | 698.2 | |||||||||||||||||
| Operating Income | $ | 28.6 | $ | 27.7 | $ | 94.9 | $ | 91.0 | $ | 119.1 | $ | 120.0 | |||||||||||
| Interest Adjusted Loss Ratios: | |||||||||||||||||||||||
| Individual Disability | 81.5 | % | 80.8 | % | 83.3 | % | 81.4 | % | 82.8 | % | 83.6 | % | |||||||||||
| Long-term Care | 93.8 | % | 89.9 | % | 91.8 | % | 86.9 | % | 87.6 | % | 196.6 | % | |||||||||||
| Long-term Care Excluding the Reserve Increase | 85.9 | % | |||||||||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Other Expense Ratio | 13.0 | % | 13.4 | % | 13.1 | % | 13.6 | % | 13.6 | % | 13.4 | % | |||||||||||
| Income (Loss) Ratio | 9.8 | % | 9.2 | % | 10.8 | % | 10.0 | % | 9.9 | % | (46.0 | )% | |||||||||||
| Operating Income Ratio | 9.8 | % | 9.2 | % | 10.8 | % | 10.0 | % | 9.9 | % | 9.5 | % | |||||||||||
| Persistency: | |||||||||||||||||||||||
| Individual Disability | 90.7 | % | 91.0 | % | 90.9 | % | 91.3 | % | |||||||||||||||
| Long-term Care | 94.8 | % | 95.4 | % | 95.7 | % | 95.4 | % | |||||||||||||||
12
Unum Group Financial Results for Corporate Segment
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||
| 9/30/2016 | 9/30/2015 | 9/30/2016 | 9/30/2015 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||
| Net Investment Income | $ | 5.4 | $ | 6.4 | $ | 15.1 | $ | 20.3 | $ | 25.6 | $ | 35.3 | |||||||||||
| Other Income | 0.9 | 1.8 | 2.5 | 2.6 | 2.9 | 5.0 | |||||||||||||||||
| Total | 6.3 | 8.2 | 17.6 | 22.9 | 28.5 | 40.3 | |||||||||||||||||
| Interest and Other Expenses | 47.9 | 35.1 | 126.7 | 113.1 | 153.3 | 157.9 | |||||||||||||||||
| Operating Loss Including Costs Related to Early Retirement of Debt | (41.6 | ) | (26.9 | ) | (109.1 | ) | (90.2 | ) | (124.8 | ) | (117.6 | ) | |||||||||||
| Costs Related to Early Retirement of Debt | — | — | — | — | — | 13.2 | |||||||||||||||||
| Operating Loss | $ | (41.6 | ) | $ | (26.9 | ) | $ | (109.1 | ) | $ | (90.2 | ) | $ | (124.8 | ) | $ | (104.4 | ) | |||||
13
Unum Group Reserves
| September 30, 2016 | |||||||||||||||||||||||||||||
| Gross | Total | ||||||||||||||||||||||||||||
| Policy | Claim Reserves | Reinsurance | Total | ||||||||||||||||||||||||||
| Reserves | % | Incurred | IBNR | % | Total | Ceded | Net | ||||||||||||||||||||||
| Group Disability | $ | — | — | % | $ | 6,240.5 | $ | 600.4 | 29.3 | % | $ | 6,840.9 | $ | 73.0 | $ | 6,767.9 | |||||||||||||
| Group Life and Accidental Death & Dismemberment | 65.5 | 0.4 | 703.4 | 189.5 | 3.8 | 958.4 | 4.1 | 954.3 | |||||||||||||||||||||
| Individual Disability | 545.6 | 3.0 | 1,279.8 | 132.3 | 6.0 | 1,957.7 | 106.3 | 1,851.4 | |||||||||||||||||||||
| Voluntary Benefits | 1,474.9 | 8.1 | 48.2 | 54.2 | 0.5 | 1,577.3 | 28.3 | 1,549.0 | |||||||||||||||||||||
| Dental and Vision | — | — | 1.8 | 6.7 | — | 8.5 | 0.2 | 8.3 | |||||||||||||||||||||
| Unum US Segment | 2,086.0 | 11.5 | 8,273.7 | 983.1 | 39.6 | 11,342.8 | 211.9 | 11,130.9 | |||||||||||||||||||||
| Unum UK Segment | 18.3 | 0.1 | 1,809.7 | 116.8 | 8.2 | 1,944.8 | 89.6 | 1,855.2 | |||||||||||||||||||||
| Colonial Life Segment | 1,839.1 | 10.2 | 278.4 | 131.8 | 1.8 | 2,249.3 | 7.9 | 2,241.4 | |||||||||||||||||||||
| Individual Disability | 538.7 | 3.0 | 9,736.8 | 261.9 | 42.8 | 10,537.4 | 1,586.9 | 8,950.5 | |||||||||||||||||||||
| Long-term Care | 7,773.3 | 43.0 | 1,325.6 | 133.2 | 6.2 | 9,232.1 | 42.3 | 9,189.8 | |||||||||||||||||||||
| Other | 5,829.4 | 32.2 | 191.3 | 126.0 | 1.4 | 6,146.7 | 4,998.2 | 1,148.5 | |||||||||||||||||||||
| Closed Block Segment | 14,141.4 | 78.2 | 11,253.7 | 521.1 | 50.4 | 25,916.2 | 6,627.4 | 19,288.8 | |||||||||||||||||||||
| Subtotal | $ | 18,084.8 | 100.0 | % | $ | 21,615.5 | $ | 1,752.8 | 100.0 | % | 41,453.1 | 6,936.8 | 34,516.3 | ||||||||||||||||
| Adjustment Related to Unrealized Investment Gains and Losses | 5,775.5 | 379.7 | 5,395.8 | ||||||||||||||||||||||||||
| Consolidated | $ | 47,228.6 | $ | 7,316.5 | $ | 39,912.1 | |||||||||||||||||||||||
The increase in the adjustment related to unrealized investment gains and losses, relative to year-end 2015, was due to a decrease in U.S. Treasury rates and credit spreads. This adjustment is applied to our reserves and is consistent with a similar adjustment to our invested assets.
14
Unum Group Reserves
| December 31, 2015 | |||||||||||||||||||||||||||||
| Gross | Total Reinsurance Ceded | ||||||||||||||||||||||||||||
| Policy Reserves | Claim Reserves | Total Net | |||||||||||||||||||||||||||
| % | Incurred | IBNR | % | Total | |||||||||||||||||||||||||
| Group Disability | $ | — | — | % | $ | 6,347.0 | $ | 597.2 | 29.2 | % | $ | 6,944.2 | $ | 66.3 | $ | 6,877.9 | |||||||||||||
| Group Life and Accidental Death & Dismemberment | 68.3 | 0.4 | 725.9 | 186.8 | 3.8 | 981.0 | 4.8 | 976.2 | |||||||||||||||||||||
| Individual Disability | 552.9 | 3.1 | 1,238.2 | 130.8 | 5.8 | 1,921.9 | 109.9 | 1,812.0 | |||||||||||||||||||||
| Voluntary Benefits | 1,434.4 | 8.1 | 48.9 | 48.5 | 0.4 | 1,531.8 | 28.6 | 1,503.2 | |||||||||||||||||||||
| Unum US Segment | 2,055.6 | 11.6 | 8,360.0 | 963.3 | 39.2 | 11,378.9 | 209.6 | 11,169.3 | |||||||||||||||||||||
| Unum UK Segment | 21.0 | 0.1 | 2,053.6 | 135.0 | 9.2 | 2,209.6 | 101.2 | 2,108.4 | |||||||||||||||||||||
| Colonial Life Segment | 1,760.0 | 10.0 | 276.5 | 132.2 | 1.7 | 2,168.7 | 8.1 | 2,160.6 | |||||||||||||||||||||
| Individual Disability | 620.0 | 3.5 | 9,922.8 | 259.2 | 42.8 | 10,802.0 | 1,568.5 | 9,233.5 | |||||||||||||||||||||
| Long-term Care | 7,383.3 | 41.9 | 1,225.4 | 123.4 | 5.7 | 8,732.1 | 42.5 | 8,689.6 | |||||||||||||||||||||
| Other | 5,810.8 | 32.9 | 204.2 | 140.5 | 1.4 | 6,155.5 | 4,991.0 | 1,164.5 | |||||||||||||||||||||
| Closed Block Segment | 13,814.1 | 78.3 | 11,352.4 | 523.1 | 49.9 | 25,689.6 | 6,602.0 | 19,087.6 | |||||||||||||||||||||
| Subtotal | $ | 17,650.7 | 100.0 | % | $ | 22,042.5 | $ | 1,753.6 | 100.0 | % | 41,446.8 | 6,920.9 | 34,525.9 | ||||||||||||||||
| Adjustment Related to Unrealized Investment Gains and Losses | 3,578.4 | 263.2 | 3,315.2 | ||||||||||||||||||||||||||
| Consolidated | $ | 45,025.2 | $ | 7,184.1 | $ | 37,841.1 | |||||||||||||||||||||||
14. 1
Unum Group Investments
| 9/30/2016 | 9/30/2016 | 12/31/2015 | |||||||||||||||
| Fixed Maturity Securities (Fair Value) | |||||||||||||||||
| Public | $ | 30,149.7 | 65.1 | % | Selected Statistics | ||||||||||||
| Asset-Backed Securities | 91.6 | 0.2 | Earned Book Yield | 5.29 | % | 5.40 | % | ||||||||||
| Residential Mortgage-Backed Securities (1) | 2,163.1 | 4.7 | Average Duration (in years) | 7.77 | 7.54 | ||||||||||||
| Commercial Mortgage-Backed Securities | 131.5 | 0.3 | |||||||||||||||
| Private Placements | 5,407.1 | 11.7 | |||||||||||||||
| High Yield | 3,594.9 | 7.8 | |||||||||||||||
| Government Securities | 2,433.9 | 5.2 | |||||||||||||||
| Municipal Securities (2) | 2,296.7 | 4.9 | |||||||||||||||
| Redeemable Preferred Stocks | 47.0 | 0.1 | |||||||||||||||
| Total | $ | 46,315.5 | 100.0 | % | |||||||||||||
| Amortized Cost | Fair Value | ||||||||||||||||
| Quality Ratings of Fixed Maturity Securities | Schedule BA and Non-Current | ||||||||||||||||
| Aaa | 8.7 | % | 8.6 | % | Total Non-Current Investments | $ | 41.9 | $ | 36.8 | ||||||||
| Aa | 7.8 | 8.5 | Total Schedule BA Assets | $ | 508.8 | $ | 443.5 | ||||||||||
| A | 27.7 | 29.1 | |||||||||||||||
| Baa | 46.9 | 46.0 | |||||||||||||||
| Below Baa | 8.9 | 7.8 | |||||||||||||||
| Total | 100.0 | % | 100.0 | % | |||||||||||||
| (1) Includes $15.1 million of high yield mortgage-backed securities. | |||||||||||||||||
| (2) Includes $1.4 million of high yield taxable municipal securities. | |||||||||||||||||
15
Unum Group Investments at September 30, 2016
| Fixed Maturity Securities - By Industry Classification - Unrealized Gain | ||||||||||||||||||||||||
| Classification | Fair Value | Net Unrealized Gain | Fair Value of Fixed Maturity Securities with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Fixed Maturity Securities with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||
| Basic Industry | $ | 2,754.8 | $ | 295.6 | $ | 181.1 | $ | 9.9 | $ | 2,573.7 | $ | 305.5 | ||||||||||||
| Capital Goods | 4,254.5 | 596.3 | 53.5 | 3.5 | 4,201.0 | 599.8 | ||||||||||||||||||
| Communications | 3,183.0 | 517.7 | 152.2 | 7.2 | 3,030.8 | 524.9 | ||||||||||||||||||
| Consumer Cyclical | 1,557.0 | 217.0 | 8.4 | — | 1,548.6 | 217.0 | ||||||||||||||||||
| Consumer Non-Cyclical | 6,729.2 | 999.1 | 168.6 | 7.3 | 6,560.6 | 1,006.4 | ||||||||||||||||||
| Energy | 5,272.6 | 546.0 | 612.4 | 50.3 | 4,660.2 | 596.3 | ||||||||||||||||||
| Financial Institutions | 3,445.3 | 376.8 | 18.9 | 0.1 | 3,426.4 | 376.9 | ||||||||||||||||||
| Mortgage/Asset-Backed | 2,386.2 | 207.4 | 10.2 | 0.3 | 2,376.0 | 207.7 | ||||||||||||||||||
| Sovereigns | 981.7 | 232.7 | — | — | 981.7 | 232.7 | ||||||||||||||||||
| Technology | 1,649.8 | 125.2 | 71.6 | 4.0 | 1,578.2 | 129.2 | ||||||||||||||||||
| Transportation | 1,929.9 | 336.3 | 0.6 | — | 1,929.3 | 336.3 | ||||||||||||||||||
| U.S. Government Agencies and Municipalities | 3,748.9 | 721.7 | 22.1 | 0.2 | 3,726.8 | 721.9 | ||||||||||||||||||
| Public Utilities | 8,422.6 | 1,518.6 | 81.4 | 1.3 | 8,341.2 | 1,519.9 | ||||||||||||||||||
| Total | $ | 46,315.5 | $ | 6,690.4 | $ | 1,381.0 | $ | 84.1 | $ | 44,934.5 | $ | 6,774.5 | ||||||||||||
| Fixed Maturity Securities - Energy Classification - Unrealized Gain (Loss) | ||||||||||||||||||||||||
| Midstream | $ | 2,310.1 | $ | 188.9 | $ | 207.8 | $ | 6.0 | $ | 2,102.3 | $ | 194.9 | ||||||||||||
| Oil and Gas-Independent | 1,546.7 | 156.0 | 250.5 | 25.3 | 1,296.2 | 181.3 | ||||||||||||||||||
| Oil Field | 171.2 | (5.4 | ) | 109.6 | 17.4 | 61.6 | 12.0 | |||||||||||||||||
| Oil-Integrated | 891.2 | 170.9 | 13.5 | 0.4 | 877.7 | 171.3 | ||||||||||||||||||
| Oil-Refining | 301.0 | 33.2 | 21.0 | 1.2 | 280.0 | 34.4 | ||||||||||||||||||
| Other Energy | 52.4 | 2.4 | 10.0 | — | 42.4 | 2.4 | ||||||||||||||||||
| Total | $ | 5,272.6 | $ | 546.0 | $ | 612.4 | $ | 50.3 | $ | 4,660.2 | $ | 596.3 | ||||||||||||
| Gross Unrealized Loss on Fixed Maturity Securities By Length of Time in Unrealized Loss Position | ||||||||||||||||||||||||
| Investment-Grade | Below-Investment-Grade | |||||||||||||||||||||||
| Category | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||
| Less than 91 days | $ | 194.1 | $ | 2.2 | $ | 103.2 | $ | 0.4 | ||||||||||||||||
| 91 through 180 days | 13.3 | 0.3 | 5.8 | 0.3 | ||||||||||||||||||||
| 181 through 270 days | 64.9 | 4.0 | 25.7 | 1.6 | ||||||||||||||||||||
| 271 days to 1 year | — | — | 12.1 | 0.9 | ||||||||||||||||||||
| Greater than 1 year | 242.7 | 9.2 | 719.2 | 65.2 | ||||||||||||||||||||
| Total | $ | 515.0 | $ | 15.7 | $ | 866.0 | $ | 68.4 | ||||||||||||||||
15. 1
Appendix to Statistical Supplement
2016 Significant Items
| • | In August 2016, we acquired 100 percent of the shares and voting interests in H&J Capital, L.L.C., parent of Starmount Life Insurance Company and AlwaysCare Benefits (which collectively we refer to as Starmount) for an initial cash purchase price of $140.1 million, plus contingent cash consideration of $10.0 million. Starmount Life Insurance Company is an independent provider of dental and vision insurance in the U.S. workplace, and AlwaysCare Benefits is a nationally licensed, third-party administrator. Starmount's dental and vision products and new dental and vision products to be marketed by Unum US are reported in our Unum US segment within our supplemental and voluntary product lines. Colonial Life dental and vision products are expected to be introduced in 2018. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, is not expected to have a material impact on revenue or results of operations for 2016. |
| • | In January 2016, we adopted a Financial Accounting Standards Board (FASB) update that simplified the presentation of deferred debt issuance costs by requiring these costs to be presented in the balance sheet as a reduction of the carrying amount of the debt liability to which the deferred costs relate, rather than classifying the deferred costs as an asset. This classification is consistent with the treatment of debt discounts. We applied the amendments in the update retrospectively, adjusting all prior period balance sheets and related metrics throughout this document. |
2015 Significant Items
| • | In September 2015, we acquired 100 percent of the common shares and voting interests in National Dental Plan Limited and associated companies (National Dental) for a total cash purchase price of £35.9 million or $54.3 million. National Dental, a provider of dental insurance in the U.K. workplace, is reported in our Unum UK segment as part of our supplemental product line. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue or results of operations during 2015. |
| • | In January 2014, the FASB issued an update permitting entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). We adopted this update effective January 1, 2015 and applied the amendments retrospectively, adjusting all prior period operating results, balance sheets, and related metrics throughout this document. |
2014 Significant Items
| • | Fourth quarter of 2014 reserve increase of $698.2 million before tax and $453.8 million after tax related to long-term care. |
| • | Fourth quarter of 2014 settlement loss of $64.4 million before tax and $41.9 million after tax related to a pension plan amendment. |
| • | Second quarter of 2014 costs related to early retirement of debt of $13.2 million before tax and $10.4 million after tax. |
| • | In December 2014, we retired 60 million shares of our treasury stock with an average total cost of $1,451.7 million. |
| 16 | ||
Appendix to Statistical Supplement - Continued
Non-GAAP Financial Measures
We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial measures are better performance measures and better indicators of the revenue and profitability and underlying trends in our business:
| • | Consolidated operating revenue, which excludes realized investment gains or losses; |
| • | After-tax operating income or loss, which excludes realized investment gains or losses, non-operating retirement-related gains or losses, and certain other items, as applicable; |
| • | Operating return on equity, which is calculated using after-tax operating income or loss and excludes from equity the unrealized gain or loss on securities and net gain on cash flow hedges; |
| • | Leverage ratio, which excludes the unrealized gain or loss on securities and net gain on cash flow hedges, and the non-recourse debt and associated capital of Northwind Holdings, LLC; and |
| • | Book value per common share, which is calculated excluding accumulated other comprehensive income (AOCI). |
Realized investment gains or losses; non-operating retirement-related gains or losses; unrealized gains or losses on securities and net gains on cash flow hedges depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. Leverage ratio and book value per common share excluding certain components of AOCI, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures. We also exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace the comparable GAAP measures in the determination of overall profitability.
Information reconciling the Company’s outlook on after-tax operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax operating income are those described in the preceding paragraphs. While the amortization of prior period actuarial gains or losses in our net periodic benefit cost for our pensions and other postretirement benefit plans is generally consistent in a given annual period and can reasonably be predicted, the Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio. For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 16.2.
16. 1
Reconciliation of Non-GAAP Financial Measures
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| September 30 | June 30 | March 31 | December 31 | September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||||||||||||||||||
| 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||||
| Total Revenue | $ | 2,763.3 | $ | 2,761.3 | $ | 2,725.4 | $ | 2,722.4 | $ | 2,657.8 | $ | 2,703.7 | $ | 2,647.4 | $ | 2,639.0 | $ | 2,614.3 | |||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) | 11.0 | 5.3 | (20.5 | ) | (2.7 | ) | (26.6 | ) | 0.8 | (15.3 | ) | (17.3 | ) | 1.2 | |||||||||||||||||||||
| Operating Revenue | $ | 2,752.3 | $ | 2,756.0 | $ | 2,745.9 | $ | 2,725.1 | $ | 2,684.4 | $ | 2,702.9 | $ | 2,662.7 | $ | 2,656.3 | $ | 2,613.1 | |||||||||||||||||
| Annualized | |||||||||||
| After-Tax | Average | Operating | |||||||||
| Operating | Allocated | Return | |||||||||
| Income (Loss) | Equity(1) | On Equity | |||||||||
| Three Months Ended September 30, 2016 | |||||||||||
| Unum US | $ | 151.0 | $ | 4,034.1 | 15.0 | % | |||||
| Unum UK | 30.8 | 596.6 | 20.7 | % | |||||||
| Colonial Life | 51.4 | 1,192.1 | 17.3 | % | |||||||
| Core Operating Segments | 233.2 | 5,822.8 | 16.0 | % | |||||||
| Closed Block | 19.5 | 3,091.3 | |||||||||
| Corporate | (21.4 | ) | (726.5 | ) | |||||||
| Total | $ | 231.3 | $ | 8,187.6 | 11.3 | % | |||||
| Three Months Ended September 30, 2015 | |||||||||||
| Unum US | $ | 143.8 | $ | 4,237.4 | 13.6 | % | |||||
| Unum UK | 26.6 | 674.0 | 15.8 | % | |||||||
| Colonial Life | 49.7 | 1,219.4 | 16.3 | % | |||||||
| Core Operating Segments | 220.1 | 6,130.8 | 14.4 | % | |||||||
| Closed Block | 18.3 | 3,028.5 | |||||||||
| Corporate | (15.4 | ) | (1,144.6 | ) | |||||||
| Total | $ | 223.0 | $ | 8,014.7 | 11.1 | % | |||||
(1)Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented on page 16.4.
| 16. 2 | ||
Reconciliation of Non-GAAP Measures - Continued
| Annualized | |||||||||||
| After-Tax | Average | Operating | |||||||||
| Operating | Allocated | Return | |||||||||
| Income (Loss) | Equity(2) | On Equity | |||||||||
| Nine Months Ended September 30, 2016 | |||||||||||
| Unum US | $ | 440.7 | $ | 4,012.5 | 14.6 | % | |||||
| Unum UK | 91.6 | 624.9 | 19.5 | % | |||||||
| Colonial Life | 152.7 | 1,164.6 | 17.5 | % | |||||||
| Core Operating Segments | 685.0 | 5,802.0 | 15.7 | % | |||||||
| Closed Block | 63.9 | 3,028.0 | |||||||||
| Corporate | (55.1 | ) | (677.8 | ) | |||||||
| Total | $ | 693.8 | $ | 8,152.2 | 11.3 | % | |||||
| Nine Months Ended September 30, 2015 | |||||||||||
| Unum US | $ | 417.1 | $ | 4,222.1 | 13.2 | % | |||||
| Unum UK | 82.3 | 669.7 | 16.4 | % | |||||||
| Colonial Life | 150.6 | 1,200.8 | 16.7 | % | |||||||
| Core Operating Segments | 650.0 | 6,092.6 | 14.2 | % | |||||||
| Closed Block | 60.4 | 2,929.2 | |||||||||
| Corporate | (40.0 | ) | (1,092.8 | ) | |||||||
| Total | $ | 670.4 | $ | 7,929.0 | 11.3 | % | |||||
(2)Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented on page 16.4. We updated our internal allocation formula used to determine allocated stockholders' equity for certain of our product lines within our operating segments, and, as a result, we are computing the average allocated equity for 2016 using internally allocated equity which was updated effective January 1, 2016. As a result, average equity for the nine months ended September 30, 2016 for certain of our segments will not compute using the historical allocated equity at December 31, 2015. There was no impact on total allocated equity or total average allocated equity.
16. 3
Reconciliation of Non-GAAP Financial Measures - Continued
| After-Tax | Average | Operating | |||||||||
| Operating | Allocated | Return | |||||||||
| Income (Loss) | Equity(3) | On Equity | |||||||||
| Year Ended December 31, 2015 | |||||||||||
| Unum US | $ | 557.5 | $ | 4,197.8 | 13.3 | % | |||||
| Unum UK | 116.9 | 650.6 | 18.0 | % | |||||||
| Colonial Life | 201.1 | 1,209.4 | 16.6 | % | |||||||
| Core Operating Segments | 875.5 | 6,057.8 | 14.5 | % | |||||||
| Closed Block | 79.0 | 2,989.2 | |||||||||
| Corporate | (53.5 | ) | (1,085.9 | ) | |||||||
| Total | $ | 901.0 | $ | 7,961.1 | 11.3 | % | |||||
| Year Ended December 31, 2014 | |||||||||||
| Unum US | $ | 554.9 | $ | 4,157.4 | 13.3 | % | |||||
| Unum UK | 116.4 | 635.3 | 18.3 | % | |||||||
| Colonial Life | 194.4 | 1,163.1 | 16.7 | % | |||||||
| Core Operating Segments | 865.7 | 5,955.8 | 14.5 | % | |||||||
| Closed Block | 79.2 | 2,756.3 | |||||||||
| Corporate | (45.8 | ) | (737.8 | ) | |||||||
| Total | $ | 899.1 | $ | 7,974.3 | 11.3 | % | |||||
(3)Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented below.
Average allocated equity is computed as follows:
| 9/30/2016 | 6/30/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 12/31/2014 | 12/31/2013 | |||||||||||||||||||||
| Total Stockholders' Equity, As Reported | $ | 9,361.2 | $ | 9,157.0 | $ | 8,663.9 | $ | 8,581.1 | $ | 8,515.7 | $ | 8,521.9 | $ | 8,639.9 | |||||||||||||
| Excluding: | |||||||||||||||||||||||||||
| Net Unrealized Gain on Securities | 803.2 | 661.1 | 204.3 | 158.6 | 112.1 | 290.3 | 135.7 | ||||||||||||||||||||
| Net Gain on Cash Flow Hedges | 335.2 | 343.6 | 378.0 | 405.1 | 391.7 | 391.0 | 396.3 | ||||||||||||||||||||
| Total Stockholders' Equity, as Adjusted | $ | 8,222.8 | $ | 8,152.3 | $ | 8,081.6 | $ | 8,017.4 | $ | 8,011.9 | $ | 7,840.6 | $ | 8,107.9 | |||||||||||||
| Three Months Ended | Nine Months Ended | Twelve Months Ended | Three Months Ended | Nine Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| 9/30/2016 | 12/31/2015 | 9/30/2015 | 12/31/2014 | ||||||||||||||||||||||||
| Average Stockholders' Equity Excluding Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges | $ | 8,187.6 | $ | 8,152.2 | $ | 7,961.1 | $ | 8,014.7 | $ | 7,929.0 | $ | 7,974.3 | |||||||||||||||
16. 4
Reconciliation of Non-GAAP Financial Measures - Continued
| Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||
| (in millions) | per share * | (in millions) | per share * | (in millions) | per share * | (in millions) | per share * | ||||||||||||||||||||||||
| Net Income | $ | 236.0 | $ | 1.01 | $ | 203.8 | $ | 0.83 | $ | 683.4 | $ | 2.88 | $ | 641.0 | $ | 2.57 | |||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $3.7; $(9.3); $1.7; $(17.5)) | 7.3 | 0.03 | (17.3 | ) | (0.07 | ) | (2.5 | ) | (0.02 | ) | (23.6 | ) | (0.10 | ) | |||||||||||||||||
| Non-operating Retirement-related Loss (net of tax benefit of $1.5; $1.1; $4.3; $3.1) | (2.6 | ) | (0.01 | ) | (1.9 | ) | (0.01 | ) | (7.9 | ) | (0.03 | ) | (5.8 | ) | (0.02 | ) | |||||||||||||||
| After-tax Operating Income | $ | 231.3 | $ | 0.99 | $ | 223.0 | $ | 0.91 | $ | 693.8 | $ | 2.93 | $ | 670.4 | $ | 2.69 | |||||||||||||||
| Year Ended December 31 | |||||||||||||||
| 2015 | 2014 | ||||||||||||||
| (in millions) | per share * | (in millions) | per share * | ||||||||||||
| Net Income | $ | 867.1 | $ | 3.50 | $ | 402.1 | $ | 1.57 | |||||||
| Excluding: | |||||||||||||||
| Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $(17.7); $3.3) | (26.1 | ) | (0.11 | ) | 12.8 | 0.05 | |||||||||
| Non-operating Retirement-related Loss (net of tax benefit of $4.1; $24.4) | (7.8 | ) | (0.03 | ) | (45.6 | ) | (0.18 | ) | |||||||
| Costs Related to Early Retirement of Debt (net of tax benefit of $-; $2.8) | — | — | (10.4 | ) | (0.04 | ) | |||||||||
| Long-term Care Reserve Increase (net of tax benefit of $-; $244.4) | — | — | (453.8 | ) | (1.77 | ) | |||||||||
| After-tax Operating Income | $ | 901.0 | $ | 3.64 | $ | 899.1 | $ | 3.51 | |||||||
| * Assuming Dilution | |||||||||||||||
16. 5
| September 30 | December 31 | ||||||||||||||
| 2016 | 2015 | 2015 | 2014 | ||||||||||||
| As Adjusted | |||||||||||||||
| Debt, As Reported | $ | 3,019.8 | $ | 2,698.2 | $ | 2,801.4 | $ | 2,752.9 | |||||||
| Excluding: | |||||||||||||||
| Non-recourse Debt | 269.7 | 335.8 | 324.0 | 398.4 | |||||||||||
| Debt, As Adjusted | $ | 2,750.1 | $ | 2,362.4 | $ | 2,477.4 | $ | 2,354.5 | |||||||
| Total Stockholders' Equity, As Reported | $ | 9,361.2 | $ | 8,581.1 | $ | 8,663.9 | $ | 8,521.9 | |||||||
| Excluding: | |||||||||||||||
| Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges | 1,138.4 | 563.7 | 582.3 | 681.3 | |||||||||||
| Northwind Capital | 859.8 | 851.3 | 844.6 | 849.9 | |||||||||||
| Equity, As Adjusted | 7,363.0 | 7,166.1 | 7,237.0 | 6,990.7 | |||||||||||
| Debt, As Adjusted | 2,750.1 | 2,362.4 | 2,477.4 | 2,354.5 | |||||||||||
| Total Capital, As Adjusted | $ | 10,113.1 | $ | 9,528.5 | $ | 9,714.4 | $ | 9,345.2 | |||||||
| Leverage Ratio | 27.2 | % | 24.8 | % | 25.5 | % | 25.2 | % | |||||||
16. 6