Exhibit 99.2
![](https://capedge.com/proxy/8-K/0001157523-09-000773/cover.jpg)
Unum Group | |
Statistical Supplement Fourth Quarter 2008 | |
TABLE OF CONTENTS | |
(dollars in millions, except share data and where noted) | |
Interim Results are Unaudited | |
Page | |
1 | |
2 | |
3 | |
4 | |
5 | |
6 | |
7 | |
8 | |
9 | |
10 | |
11 | |
12 | |
13 | |
14 | |
15 | |
Throughout this supplement, segment operating results exclude income taxes and realized investment gains and losses. | |
Effective with fourth quarter of 2008, we made slight modifications to our reporting segments. Previously reported segment information has been revised to reflect the reclassifications. See page 15. | |
See "Notes to Statistical Supplement" on page 15 for a discussion of non-GAAP financial measures and significant transactions and events. | |
N.M. = not a meaningful percentage |
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Financial Results | ||||||||||||||||||||
Premium Income | $ | 1,917.7 | $ | 1,983.9 | $ | 7,783.3 | $ | 7,901.1 | $ | 7,948.2 | ||||||||||
Segment Operating Revenue | $ | 2,581.4 | $ | 2,669.3 | $ | 10,448.2 | $ | 10,585.1 | $ | 10,533.1 | ||||||||||
Net Realized Investment Gain (Loss) | (257.7 | ) | (25.8 | ) | (465.9 | ) | (65.2 | ) | 2.2 | |||||||||||
Revenue | $ | 2,323.7 | $ | 2,643.5 | $ | 9,982.3 | $ | 10,519.9 | $ | 10,535.3 | ||||||||||
Income from Continuing Operations | $ | 41.8 | $ | 160.5 | $ | 553.2 | $ | 672.4 | $ | 403.6 | ||||||||||
Income from Discontinued Operations, net of tax | - | - | - | 6.9 | 7.4 | |||||||||||||||
Net Income | $ | 41.8 | $ | 160.5 | $ | 553.2 | $ | 679.3 | $ | 411.0 | ||||||||||
Assets | $ | 49,417.4 | $ | 52,701.9 | $ | 52,977.8 | ||||||||||||||
Stockholders' Equity | $ | 6,397.9 | $ | 8,039.9 | $ | 7,718.8 |
2007 | ||
• | Full year 2007 results include a claim reassessment charge of $53.0 million before tax, or $34.5 million after tax. | |
• | Fourth quarter 2007 results include costs related to early retirement of debt of $55.6 million before tax, or $36.1 million after tax, and full | |
year 2007 results include $58.8 million before tax, or $38.3 million after tax. | ||
2006 | ||
• | Full year 2006 results include claim reassessment charges of $411.4 million before tax, or $267.4 million after tax. | |
• | Full year 2006 results include costs related to early retirement of debt of $25.8 million before tax, or $16.9 million after tax. | |
• | Full year 2006 results include broker compensation settlement expenses of $18.5 million before tax, or $12.7 million after tax. | |
�� | ||
• | Full year 2006 results include income of $2.6 million before tax, or $3.9 million after tax, attributable to the receipt of interest and tax | |
refunds on prior year tax items in excess of what was previously provided. | ||
• | Full year 2006 results include an income tax benefit of approximately $91.9 million primarily as the result of group relief benefits obtained | |
from the use of net operating losses in a foreign jurisdiction in which our businesses operate. |
1
Unum Group Financial Highlights | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Per Common Share Information | ||||||||||||||||||||
Assuming Dilution: | ||||||||||||||||||||
Income from Continuing Operations | $ | 0.13 | $ | 0.44 | $ | 1.62 | $ | 1.89 | $ | 1.21 | ||||||||||
Income from Discontinued Operations, net of tax | - | - | - | 0.02 | 0.02 | |||||||||||||||
Net Income | $ | 0.13 | $ | 0.44 | $ | 1.62 | $ | 1.91 | $ | 1.23 | ||||||||||
Basic: | ||||||||||||||||||||
Income from Continuing Operations | $ | 0.13 | $ | 0.45 | $ | 1.62 | $ | 1.90 | $ | 1.25 | ||||||||||
Income from Discontinued Operations, net of tax | - | - | - | 0.02 | 0.02 | |||||||||||||||
Net Income | $ | 0.13 | $ | 0.45 | $ | 1.62 | $ | 1.92 | $ | 1.27 | ||||||||||
Dividends Paid | $ | 0.075 | $ | 0.075 | $ | 0.300 | $ | 0.300 | $ | 0.300 | ||||||||||
Book Value | $ | 19.32 | $ | 22.28 | $ | 22.53 | ||||||||||||||
Price (UNM closing price on last trading day of period) | $ | 18.60 | $ | 23.79 | $ | 20.78 |
1.1
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Revenue | ||||||||||||||||||||
Premium Income | $ | 1,917.7 | $ | 1,983.9 | $ | 7,783.3 | $ | 7,901.1 | $ | 7,948.2 | ||||||||||
Net Investment Income | 589.8 | 619.4 | 2,389.0 | 2,409.9 | 2,320.6 | |||||||||||||||
Net Realized Investment Gain (Loss) | (257.7 | ) | (25.8 | ) | (465.9 | ) | (65.2 | ) | 2.2 | |||||||||||
Other Income | 73.9 | 66.0 | 275.9 | 274.1 | 264.3 | |||||||||||||||
Total Revenue | 2,323.7 | 2,643.5 | 9,982.3 | 10,519.9 | 10,535.3 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,648.5 | 1,715.7 | 6,626.4 | 6,988.2 | 7,577.2 | |||||||||||||||
Commissions | 208.5 | 210.6 | 853.3 | 841.1 | 819.0 | |||||||||||||||
Interest and Debt Expense - Non-recourse Debt | 7.9 | 10.1 | 39.3 | 15.8 | 1.3 | |||||||||||||||
Interest and Debt Expense - All Other Debt | 26.9 | 38.7 | 117.0 | 167.3 | 190.5 | |||||||||||||||
Cost Related to Early Retirement of Debt | - | 55.6 | 0.4 | 58.8 | 25.8 | |||||||||||||||
Deferral of Acquisition Costs | (146.3 | ) | (142.7 | ) | (590.9 | ) | (556.3 | ) | (528.2 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 132.5 | 120.3 | 519.1 | 480.4 | 478.6 | |||||||||||||||
Other Expenses | 393.2 | 409.8 | 1,593.7 | 1,527.4 | 1,505.7 | |||||||||||||||
Total Benefits and Expenses | 2,271.2 | 2,418.1 | 9,158.3 | 9,522.7 | 10,069.9 | |||||||||||||||
Income from Continuing Operations Before | ||||||||||||||||||||
Income Taxes | 52.5 | 225.4 | 824.0 | 997.2 | 465.4 | |||||||||||||||
Income Taxes | 10.7 | 64.9 | 270.8 | 324.8 | 61.8 | |||||||||||||||
Income from Continuing Operations | 41.8 | 160.5 | 553.2 | 672.4 | 403.6 | |||||||||||||||
Income from Discontinued | ||||||||||||||||||||
Operations, net of tax | - | - | - | 6.9 | 7.4 | |||||||||||||||
Net Income | $ | 41.8 | $ | 160.5 | $ | 553.2 | $ | 679.3 | $ | 411.0 | ||||||||||
Average Number of Shares Outstanding | ||||||||||||||||||||
Basic | 330,845,996 | 359,809,213 | 341,022,792 | 352,969,131 | 324,654,923 | |||||||||||||||
Dilutive Securities: | ||||||||||||||||||||
Purchase Contracts | - | - | - | 1,672,949 | 8,153,001 | |||||||||||||||
Options and Other Nonvested Stock Awards | 135,475 | 898,404 | 537,505 | 1,134,373 | 1,553,820 | |||||||||||||||
Assuming Dilution | 330,981,471 | 360,707,617 | 341,560,297 | 355,776,453 | 334,361,744 | |||||||||||||||
Actual Number of Shares Outstanding | 331,120,345 | 360,893,475 | 342,627,521 |
2
Three Months Ended | Year Ended | |||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Change | 12/31/2008 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||
Unum US Segment | ||||||||||||||||||||||||
Fully Insured Products | $ | 254.9 | $ | 226.9 | 12.3 | % | $ | 701.5 | $ | 631.0 | $ | 671.8 | ||||||||||||
Administrative Services Only (ASO) Products | 3.7 | 2.6 | 42.3 | 7.2 | 7.2 | 13.7 | ||||||||||||||||||
Total Unum US Segment | 258.6 | 229.5 | 12.7 | 708.7 | 638.2 | 685.5 | ||||||||||||||||||
Unum UK Segment | 27.0 | 34.6 | (22.0 | ) | 99.5 | 105.4 | 101.1 | |||||||||||||||||
Colonial Life Segment | 115.4 | 114.2 | 1.1 | 340.2 | 334.9 | 315.1 | ||||||||||||||||||
Individual Disability - Closed Block Segment | 0.7 | 0.7 | - | 2.4 | 3.0 | 4.4 | ||||||||||||||||||
Total Sales | $ | 401.7 | $ | 379.0 | 6.0 | $ | 1,150.8 | $ | 1,081.5 | $ | 1,106.1 |
3
Unum Group Sales Data for Unum US Segment | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Change | 12/31/2008 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||
Sales by Product | ||||||||||||||||||||||||
Fully Insured Products | ||||||||||||||||||||||||
Group Disability, Group Life, and AD&D | ||||||||||||||||||||||||
Group Long-term Disability | $ | 77.4 | $ | 75.3 | 2.8 | % | $ | 190.3 | $ | 177.7 | $ | 208.5 | ||||||||||||
Group Short-term Disability | 31.0 | 24.8 | 25.0 | 71.5 | 64.7 | 74.1 | ||||||||||||||||||
Group Life | 82.6 | 61.3 | 34.7 | 165.4 | 134.0 | 149.8 | ||||||||||||||||||
AD&D | 9.2 | 6.2 | 48.4 | 17.2 | 13.8 | 13.7 | ||||||||||||||||||
Subtotal | 200.2 | 167.6 | 19.5 | 444.4 | 390.2 | 446.1 | ||||||||||||||||||
Supplemental and Voluntary | ||||||||||||||||||||||||
Individual Disability - Recently Issued | 13.5 | 15.5 | (12.9 | ) | 57.9 | 59.7 | 55.4 | |||||||||||||||||
Group Long-term Care | 10.0 | 11.4 | (12.3 | ) | 32.2 | 32.8 | 25.1 | |||||||||||||||||
Individual Long-term Care | 1.9 | 3.3 | (42.4 | ) | 8.4 | 9.9 | 11.0 | |||||||||||||||||
Voluntary Benefits | 29.3 | 29.1 | 0.7 | 158.6 | 138.4 | 134.2 | ||||||||||||||||||
Subtotal | 54.7 | 59.3 | (7.8 | ) | 257.1 | 240.8 | 225.7 | |||||||||||||||||
Total Fully Insured Products | 254.9 | 226.9 | 12.3 | 701.5 | 631.0 | 671.8 | ||||||||||||||||||
Administrative Services Only (ASO) Products | 3.7 | 2.6 | 42.3 | 7.2 | 7.2 | 13.7 | ||||||||||||||||||
Total Sales | $ | 258.6 | $ | 229.5 | 12.7 | $ | 708.7 | $ | 638.2 | $ | 685.5 | |||||||||||||
Sales by Market Sector | ||||||||||||||||||||||||
Group Disability, Group Life, and AD&D | ||||||||||||||||||||||||
Core Market (< 2,000 lives) | $ | 140.6 | $ | 108.5 | 29.6 | $ | 297.2 | $ | 240.3 | $ | 238.9 | |||||||||||||
Large Case Market | 59.6 | 59.1 | 0.8 | 147.2 | 149.9 | 207.2 | ||||||||||||||||||
Subtotal | 200.2 | 167.6 | 19.5 | 444.4 | 390.2 | 446.1 | ||||||||||||||||||
Supplemental and Voluntary | 54.7 | 59.3 | (7.8 | ) | 257.1 | 240.8 | 225.7 | |||||||||||||||||
Total Fully Insured Products | 254.9 | 226.9 | 12.3 | 701.5 | 631.0 | 671.8 | ||||||||||||||||||
Administrative Services Only (ASO) Products | 3.7 | 2.6 | 42.3 | 7.2 | 7.2 | 13.7 | ||||||||||||||||||
Total Sales | $ | 258.6 | $ | 229.5 | 12.7 | $ | 708.7 | $ | 638.2 | $ | 685.5 |
3.1
Unum Group Sales Data for Unum UK Segment | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Change | 12/31/2008 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||
Group Long-term Disability | $ | 18.5 | $ | 29.3 | (36.9 | )% | $ | 72.7 | $ | 84.4 | $ | 79.1 | ||||||||||||
Group Life | 6.9 | 3.0 | 130.0 | 19.6 | 13.2 | 16.5 | ||||||||||||||||||
Individual Disability | 1.6 | 2.3 | (30.4 | ) | 7.2 | 7.8 | 5.5 | |||||||||||||||||
Total Sales | $ | 27.0 | $ | 34.6 | (22.0 | ) | $ | 99.5 | $ | 105.4 | $ | 101.1 | ||||||||||||
(in millions of pounds) | ||||||||||||||||||||||||
Group Long-term Disability | £ | 12.0 | £ | 14.4 | (16.7 | )% | £ | 39.7 | £ | 42.1 | £ | 42.1 | ||||||||||||
Group Life | 4.3 | 1.5 | 186.7 | 10.9 | 6.6 | 9.0 | ||||||||||||||||||
Individual Disability | 1.1 | 1.1 | - | 3.9 | 3.9 | 3.0 | ||||||||||||||||||
Total Sales | £ | 17.4 | £ | 17.0 | 2.4 | £ | 54.5 | £ | 52.6 | £ | 54.1 |
Unum Group Sales Data for Colonial Life Segment | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Change | 12/31/2008 | 12/31/2007 | 12/31/2006 | |||||||||||||||||||
Accident, Sickness, and Disability | $ | 75.0 | $ | 71.9 | 4.3 | % | $ | 222.1 | $ | 211.3 | $ | 194.4 | ||||||||||||
Life | 20.4 | 22.0 | (7.3 | ) | 64.0 | 66.7 | 66.6 | |||||||||||||||||
Cancer and Critical Illness | 20.0 | 20.3 | (1.5 | ) | 54.1 | 56.9 | 54.1 | |||||||||||||||||
Total Sales | $ | 115.4 | $ | 114.2 | 1.1 | $ | 340.2 | $ | 334.9 | $ | 315.1 |
3.2
December 31, | ||||||||
2008 | 2007 | |||||||
Assets | ||||||||
Investments | ||||||||
Fixed Maturity Securities | $ | 32,134.1 | $ | 35,814.7 | ||||
Mortgage Loans | 1,274.8 | 1,068.9 | ||||||
Policy Loans | 2,753.8 | 2,617.7 | ||||||
Other Long-term Investments | 520.1 | 232.1 | ||||||
Short-term Investments | 1,183.1 | 1,486.8 | ||||||
Total Investments | 37,865.9 | 41,220.2 | ||||||
Cash and Bank Deposits | 49.9 | 199.1 | ||||||
Accounts and Premiums Receivable | 1,784.8 | 1,914.7 | ||||||
Reinsurance Recoverable | 4,974.2 | 5,160.0 | ||||||
Accrued Investment Income | 605.6 | 592.3 | ||||||
Deferred Acquisition Costs | 2,472.4 | 2,381.9 | ||||||
Goodwill | 200.5 | 204.3 | ||||||
Deferred Income Tax | 438.8 | - | ||||||
Other Assets | 1,014.8 | 1,009.2 | ||||||
Separate Account Assets | 10.5 | 20.2 | ||||||
Total Assets | $ | 49,417.4 | $ | 52,701.9 | ||||
Liabilities | ||||||||
Policy and Contract Benefits | $ | 1,769.5 | $ | 1,979.7 | ||||
Reserves for Future Policy and Contract Benefits | 34,581.5 | 35,828.0 | ||||||
Unearned Premiums | 463.9 | 523.1 | ||||||
Other Policyholders' Funds | 1,675.6 | 1,821.2 | ||||||
Income Tax Payable | 115.5 | 400.3 | ||||||
Short-term Debt | 190.5 | 175.0 | ||||||
Long-term Debt - Non-recourse | 843.2 | 912.5 | ||||||
Long-term Debt - All Other | 1,416.2 | 1,602.7 | ||||||
Other Liabilities | 1,953.1 | 1,399.3 | ||||||
Separate Account Liabilities | 10.5 | 20.2 | ||||||
Total Liabilities | 43,019.5 | 44,662.0 | ||||||
Stockholders' Equity | ||||||||
Common Stock | 36.3 | 36.3 | ||||||
Additional Paid-in Capital | 2,546.9 | 2,516.9 | ||||||
Accumulated Other Comprehensive Income (Loss) | (958.2 | ) | 463.5 | |||||
Retained Earnings | 5,527.1 | 5,077.4 | ||||||
Treasury Stock | (754.2 | ) | (54.2 | ) | ||||
Total Stockholders' Equity | 6,397.9 | 8,039.9 | ||||||
Total Liabilities and Stockholders' Equity | $ | 49,417.4 | $ | 52,701.9 |
4
Unum Group Deferred Acquisition Costs by Segment | ||||||||||||||||
Unum US | Unum UK | Colonial | Consolidated | |||||||||||||
Balances at December 31, 2005 | $ | 2,201.2 | $ | 142.5 | $ | 569.6 | $ | 2,913.3 | ||||||||
Capitalized | 306.2 | 34.4 | 187.6 | 528.2 | ||||||||||||
Amortized | (302.2 | ) | (32.0 | ) | (144.4 | ) | (478.6 | ) | ||||||||
Foreign Currency and Other | - | 20.2 | - | 20.2 | ||||||||||||
Balances at December 31, 2006 | 2,205.2 | 165.1 | 612.8 | 2,983.1 | ||||||||||||
Cumulative Effect of SOP 05-1 | (589.8 | ) | (88.3 | ) | - | (678.1 | ) | |||||||||
Capitalized | 304.2 | 41.2 | 210.9 | 556.3 | ||||||||||||
Amortized | (277.1 | ) | (49.4 | ) | (153.9 | ) | (480.4 | ) | ||||||||
Foreign Currency and Other | - | 1.0 | - | 1.0 | ||||||||||||
Balances at December 31, 2007 | 1,642.5 | 69.6 | 669.8 | 2,381.9 | ||||||||||||
Capitalized | 329.7 | 37.4 | 223.8 | 590.9 | ||||||||||||
Amortized | (320.3 | ) | (32.4 | ) | (166.4 | ) | (519.1 | ) | ||||||||
Foreign Currency and Other | 9.9 | (19.9 | ) | 28.7 | 18.7 | |||||||||||
Balances at December 31, 2008 | $ | 1,661.8 | $ | 54.7 | $ | 755.9 | $ | 2,472.4 |
4.1
Unum Group Balance Sheets by Segment - December 31, 2008 | ||||||||||||||||||||||||||||||||||||
Unum US | ||||||||||||||||||||||||||||||||||||
Group Life and Accidental | Supplemental | Individual | ||||||||||||||||||||||||||||||||||
Group | Death & | and | Total | Colonial | Disability - | Corporate | ||||||||||||||||||||||||||||||
Disability | Dismemberment | Voluntary | Unum US | Unum UK | Life | Closed Block | and Other | Consolidated | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Investments | $ | 9,227.2 | $ | 2,011.9 | $ | 6,782.6 | $ | 18,021.7 | $ | 2,568.5 | $ | 1,570.5 | $ | 11,112.4 | $ | 4,592.8 | $ | 37,865.9 | ||||||||||||||||||
Deferred Acquisition Costs | 128.3 | 85.7 | 1,447.8 | 1,661.8 | 54.7 | 755.9 | - | - | 2,472.4 | |||||||||||||||||||||||||||
Goodwill | 2.5 | - | 187.5 | 190.0 | 10.5 | - | - | - | 200.5 | |||||||||||||||||||||||||||
All Other | 460.5 | 120.6 | (13.7 | ) | 567.4 | 231.7 | 120.5 | 3,240.6 | 4,718.4 | 8,878.6 | ||||||||||||||||||||||||||
Total Assets | $ | 9,818.5 | $ | 2,218.2 | $ | 8,404.2 | $ | 20,440.9 | $ | 2,865.4 | $ | 2,446.9 | $ | 14,353.0 | $ | 9,311.2 | $ | 49,417.4 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Reserves and Policyholder Benefits | $ | 8,013.4 | $ | 1,435.8 | $ | 5,851.4 | $ | 15,300.6 | $ | 2,052.0 | $ | 1,537.2 | $ | 12,179.5 | $ | 7,421.2 | $ | 38,490.5 | ||||||||||||||||||
Debt | 102.5 | - | - | 102.5 | - | - | 799.1 | 1,548.3 | 2,449.9 | |||||||||||||||||||||||||||
All Other | 31.7 | 9.8 | 284.4 | 325.9 | 77.6 | 35.7 | 387.3 | 1,252.6 | 2,079.1 | |||||||||||||||||||||||||||
Total Liabilities | 8,147.6 | 1,445.6 | 6,135.8 | 15,729.0 | 2,129.6 | 1,572.9 | 13,365.9 | 10,222.1 | 43,019.5 | |||||||||||||||||||||||||||
Other Allocated Stockholders' Equity | 1,785.7 | 806.1 | 2,174.9 | 4,766.7 | 668.0 | 937.7 | 1,205.4 | (805.8 | ) | 6,772.0 | ||||||||||||||||||||||||||
Unrealized Gain/Loss on Securities | (114.8 | ) | (33.5 | ) | 93.5 | (54.8 | ) | 67.8 | (63.7 | ) | (218.3 | ) | (105.1 | ) | (374.1 | ) | ||||||||||||||||||||
Total Allocated Stockholders' Equity | 1,670.9 | 772.6 | 2,268.4 | 4,711.9 | 735.8 | 874.0 | 987.1 | (910.9 | ) | 6,397.9 | ||||||||||||||||||||||||||
Total Liabilities and Allocated | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | $ | 9,818.5 | $ | 2,218.2 | $ | 8,404.2 | $ | 20,440.9 | $ | 2,865.4 | $ | 2,446.9 | $ | 14,353.0 | $ | 9,311.2 | $ | 49,417.4 | ||||||||||||||||||
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 the Company's target capital levels for regulatory and rating agency purposes. This formula is modified periodically to recognize changes in the views of capital requirements. | ||||||||||||||||||||||||||||||||||||
4.2
Unum Group Balance Sheets by Segment - December 31, 2007 | ||||||||||||||||||||||||||||||||||||
Unum US | ||||||||||||||||||||||||||||||||||||
Group Life | ||||||||||||||||||||||||||||||||||||
and Accidental | Supplemental | Individual | ||||||||||||||||||||||||||||||||||
Group | Death & | and | Total | Colonial | Disability - | Corporate | ||||||||||||||||||||||||||||||
Disability | Dismemberment | Voluntary | Unum US | Unum UK | Life | Closed Block | and Other | Consolidated | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Investments | $ | 10,052.7 | $ | 2,144.9 | $ | 5,911.9 | $ | 18,109.5 | $ | 3,289.5 | $ | 1,658.0 | $ | 12,191.0 | $ | 5,972.2 | $ | 41,220.2 | ||||||||||||||||||
Deferred Acquisition Costs | 145.6 | 100.4 | 1,396.5 | 1,642.5 | 69.6 | 669.8 | - | - | 2,381.9 | |||||||||||||||||||||||||||
Goodwill | 2.5 | - | 187.5 | 190.0 | 14.3 | - | - | - | 204.3 | |||||||||||||||||||||||||||
All Other | 728.3 | 102.1 | 378.0 | 1,208.4 | 509.0 | 190.7 | 3,111.3 | 3,876.1 | 8,895.5 | |||||||||||||||||||||||||||
Total Assets | $ | 10,929.1 | $ | 2,347.4 | $ | 7,873.9 | $ | 21,150.4 | $ | 3,882.4 | $ | 2,518.5 | $ | 15,302.3 | $ | 9,848.3 | $ | 52,701.9 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Reserves and Policyholder Benefits | $ | 8,836.9 | $ | 1,514.0 | $ | 5,171.1 | $ | 15,522.0 | $ | 2,867.1 | $ | 1,464.5 | $ | 12,679.9 | $ | 7,618.5 | $ | 40,152.0 | ||||||||||||||||||
Debt | 112.5 | - | - | 112.5 | - | - | 800.0 | 1,777.7 | 2,690.2 | |||||||||||||||||||||||||||
All Other | 212.5 | 10.7 | 472.1 | 695.3 | 162.9 | 162.3 | 77.4 | 721.9 | 1,819.8 | |||||||||||||||||||||||||||
Total Liabilities | 9,161.9 | 1,524.7 | 5,643.2 | 16,329.8 | 3,030.0 | 1,626.8 | 13,557.3 | 10,118.1 | 44,662.0 | |||||||||||||||||||||||||||
Other Allocated Stockholders' Equity | 1,835.5 | 799.0 | 1,945.9 | 4,580.4 | 780.6 | 868.1 | 1,579.5 | (307.3 | ) | 7,501.3 | ||||||||||||||||||||||||||
Unrealized Gain/Loss on Securities | (68.3 | ) | 23.7 | 284.8 | 240.2 | 71.8 | 23.6 | 165.5 | 37.5 | 538.6 | ||||||||||||||||||||||||||
Total Allocated Stockholders' Equity | 1,767.2 | 822.7 | 2,230.7 | 4,820.6 | 852.4 | 891.7 | 1,745.0 | (269.8 | ) | 8,039.9 | ||||||||||||||||||||||||||
Total Liabilities and Allocated | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | $ | 10,929.1 | $ | 2,347.4 | $ | 7,873.9 | $ | 21,150.4 | $ | 3,882.4 | $ | 2,518.5 | $ | 15,302.3 | $ | 9,848.3 | $ | 52,701.9 | ||||||||||||||||||
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 the | ||||||||||||||||||||||||||||||||||||
Company's target capital levels for regulatory and rating agency purposes. This formula is modified periodically to recognize changes in the views of capital requirements. |
4.3
Three Months Ended | Year Ended | |||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Change | 12/31/2008 | 12/31/2007 | % Change | |||||||||||||||||||
Premium Income | ||||||||||||||||||||||||
Unum US | $ | 1,246.6 | $ | 1,248.1 | (0.1 | )% | $ | 4,963.0 | $ | 5,014.0 | (1.0 | )% | ||||||||||||
Unum UK | 182.3 | 251.4 | (27.5 | ) | 889.3 | 968.3 | (8.2 | ) | ||||||||||||||||
Colonial Life | 249.1 | 232.0 | 7.4 | 977.3 | 907.2 | 7.7 | ||||||||||||||||||
Individual Disability - Closed Block | 239.2 | 252.2 | (5.2 | ) | 952.3 | 1,009.9 | (5.7 | ) | ||||||||||||||||
Corporate and Other | 0.5 | 0.2 | 150.0 | 1.4 | 1.7 | (17.6 | ) | |||||||||||||||||
1,917.7 | 1,983.9 | (3.3 | ) | 7,783.3 | 7,901.1 | (1.5 | ) | |||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
Unum US | 289.6 | 279.1 | 3.8 | 1,136.4 | 1,114.0 | 2.0 | ||||||||||||||||||
Unum UK | 42.1 | 54.0 | (22.0 | ) | 181.9 | 187.4 | (2.9 | ) | ||||||||||||||||
Colonial Life | 26.9 | 25.6 | 5.1 | 105.7 | 99.9 | 5.8 | ||||||||||||||||||
Individual Disability - Closed Block | 188.9 | 206.0 | (8.3 | ) | 767.5 | 827.6 | (7.3 | ) | ||||||||||||||||
Corporate and Other | 42.3 | 54.7 | (22.7 | ) | 197.5 | 181.0 | 9.1 | |||||||||||||||||
589.8 | 619.4 | (4.8 | ) | 2,389.0 | 2,409.9 | (0.9 | ) | |||||||||||||||||
Other Income | ||||||||||||||||||||||||
Unum US | 33.2 | 33.6 | (1.2 | ) | 132.7 | 135.6 | (2.1 | ) | ||||||||||||||||
Unum UK | 0.7 | 0.4 | 75.0 | 2.0 | 3.1 | (35.5 | ) | |||||||||||||||||
Colonial Life | 0.1 | - | N.M. | 0.4 | 0.9 | (55.6 | ) | |||||||||||||||||
Individual Disability - Closed Block | 25.3 | 25.1 | 0.8 | 98.6 | 103.7 | (4.9 | ) | |||||||||||||||||
Corporate and Other | 14.6 | 6.9 | 111.6 | 42.2 | 30.8 | 37.0 | ||||||||||||||||||
73.9 | 66.0 | 12.0 | 275.9 | 274.1 | 0.7 | |||||||||||||||||||
Total Operating Revenue | ||||||||||||||||||||||||
Unum US | 1,569.4 | 1,560.8 | 0.6 | 6,232.1 | 6,263.6 | (0.5 | ) | |||||||||||||||||
Unum UK | 225.1 | 305.8 | (26.4 | ) | 1,073.2 | 1,158.8 | (7.4 | ) | ||||||||||||||||
Colonial Life | 276.1 | 257.6 | 7.2 | 1,083.4 | 1,008.0 | 7.5 | ||||||||||||||||||
Individual Disability - Closed Block | 453.4 | 483.3 | (6.2 | ) | 1,818.4 | 1,941.2 | (6.3 | ) | ||||||||||||||||
Corporate and Other | 57.4 | 61.8 | (7.1 | ) | 241.1 | 213.5 | 12.9 | |||||||||||||||||
2,581.4 | 2,669.3 | (3.3 | ) | 10,448.2 | 10,585.1 | (1.3 | ) |
5
Unum Group Financial Results by Segment | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Change | 12/31/2008 | 12/31/2007 | % Change | |||||||||||||||||||
Benefits and Expenses | ||||||||||||||||||||||||
Unum US | $ | 1,386.8 | $ | 1,399.9 | (0.9 | )% | $ | 5,548.0 | $ | 5,721.5 | (3.0 | )% | ||||||||||||
Unum UK | 170.5 | 224.1 | (23.9 | ) | 749.2 | 833.0 | (10.1 | ) | ||||||||||||||||
Colonial Life | 209.8 | 198.8 | 5.5 | 815.3 | 762.2 | 7.0 | ||||||||||||||||||
Individual Disability - Closed Block | 446.3 | 468.3 | (4.7 | ) | 1,790.7 | 1,831.7 | (2.2 | ) | ||||||||||||||||
Corporate and Other | 57.8 | 127.0 | (54.5 | ) | 255.1 | 374.3 | (31.8 | ) | ||||||||||||||||
2,271.2 | 2,418.1 | (6.1 | ) | 9,158.3 | 9,522.7 | (3.8 | ) | |||||||||||||||||
Income (Loss) from Continuing Operations | ||||||||||||||||||||||||
Before Income Taxes and Net Realized | ||||||||||||||||||||||||
Investment Gain (Loss) | ||||||||||||||||||||||||
Unum US | 182.6 | 160.9 | 13.5 | 684.1 | 542.1 | 26.2 | ||||||||||||||||||
Unum UK | 54.6 | 81.7 | (33.2 | ) | 324.0 | 325.8 | (0.6 | ) | ||||||||||||||||
Colonial Life | 66.3 | 58.8 | 12.8 | 268.1 | 245.8 | 9.1 | ||||||||||||||||||
Individual Disability - Closed Block | 7.1 | 15.0 | (52.7 | ) | 27.7 | 109.5 | (74.7 | ) | ||||||||||||||||
Corporate and Other | (0.4 | ) | (65.2 | ) | 99.4 | (14.0 | ) | (160.8 | ) | 91.3 | ||||||||||||||
310.2 | 251.2 | 23.5 | 1,289.9 | 1,062.4 | 21.4 | |||||||||||||||||||
Income Taxes | 100.8 | 74.2 | 35.8 | 432.6 | 346.8 | 24.7 | ||||||||||||||||||
Income from Continuing Operations | ||||||||||||||||||||||||
Before Net Realized Investment Loss | 209.4 | 177.0 | 18.3 | 857.3 | 715.6 | 19.8 | ||||||||||||||||||
Net Realized Investment Loss | (257.7 | ) | (25.8 | ) | N.M. | (465.9 | ) | (65.2 | ) | N.M. | ||||||||||||||
Tax Benefit on Net Realized | ||||||||||||||||||||||||
Investment Loss | (90.1 | ) | (9.3 | ) | N.M. | (161.8 | ) | (22.0 | ) | N.M. | ||||||||||||||
Income from Discontinued | ||||||||||||||||||||||||
Operations, net of tax | - | - | N.M. | - | 6.9 | (100.0 | ) | |||||||||||||||||
Net Income | $ | 41.8 | $ | 160.5 | (74.0 | ) | $ | 553.2 | $ | 679.3 | (18.6 | ) |
5.1
12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | 12/31/07 | 9/30/07 | 6/30/07 | 3/31/07 | 12/31/06 | ||||||||||||||||||||||||||||
Premium Income | ||||||||||||||||||||||||||||||||||||
Unum US | $ | 1,246.6 | $ | 1,239.1 | $ | 1,246.9 | $ | 1,230.4 | $ | 1,248.1 | $ | 1,255.3 | $ | 1,265.7 | $ | 1,244.9 | $ | 1,302.0 | ||||||||||||||||||
Unum UK | 182.3 | 224.7 | 241.7 | 240.6 | 251.4 | 247.6 | 247.0 | 222.3 | 231.0 | |||||||||||||||||||||||||||
Colonial Life | 249.1 | 245.2 | 242.6 | 240.4 | 232.0 | 227.0 | 224.8 | 223.4 | 217.2 | |||||||||||||||||||||||||||
Individual Disability - Closed Block | 239.2 | 237.5 | 237.2 | 238.4 | 252.2 | 256.0 | 249.4 | 252.3 | 269.8 | |||||||||||||||||||||||||||
Corporate and Other | 0.5 | - | 0.2 | 0.7 | 0.2 | 0.6 | (0.2 | ) | 1.1 | 2.0 | ||||||||||||||||||||||||||
1,917.7 | 1,946.5 | 1,968.6 | 1,950.5 | 1,983.9 | 1,986.5 | 1,986.7 | 1,944.0 | 2,022.0 | ||||||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||||||||||||
Unum US | 289.6 | 284.3 | 286.5 | 276.0 | 279.1 | 278.5 | 282.7 | 273.7 | 283.3 | |||||||||||||||||||||||||||
Unum UK | 42.1 | 45.8 | 51.5 | 42.5 | 54.0 | 44.0 | 46.3 | 43.1 | 49.3 | |||||||||||||||||||||||||||
Colonial Life | 26.9 | 26.5 | 26.4 | 25.9 | 25.6 | 25.0 | 24.9 | 24.4 | 24.0 | |||||||||||||||||||||||||||
Individual Disability - Closed Block | 188.9 | 189.3 | 198.4 | 190.9 | 206.0 | 213.6 | 203.4 | 204.6 | 205.5 | |||||||||||||||||||||||||||
Corporate and Other | 42.3 | 48.8 | 50.3 | 56.1 | 54.7 | 42.1 | 40.5 | 43.7 | 39.3 | |||||||||||||||||||||||||||
589.8 | 594.7 | 613.1 | 591.4 | 619.4 | 603.2 | 597.8 | 589.5 | 601.4 | ||||||||||||||||||||||||||||
Other Income | ||||||||||||||||||||||||||||||||||||
Unum US | 33.2 | 33.5 | 33.4 | 32.6 | 33.6 | 32.8 | 34.6 | 34.6 | 27.7 | |||||||||||||||||||||||||||
Unum UK | 0.7 | 0.9 | 0.2 | 0.2 | 0.4 | 0.7 | 0.3 | 1.7 | 0.1 | |||||||||||||||||||||||||||
Colonial Life | 0.1 | 0.1 | 0.1 | 0.1 | - | 0.3 | 0.3 | 0.3 | 0.2 | |||||||||||||||||||||||||||
Individual Disability - Closed Block | 25.3 | 23.8 | 25.4 | 24.1 | 25.1 | 27.5 | 25.8 | 25.3 | 29.4 | |||||||||||||||||||||||||||
Corporate and Other | 14.6 | 9.0 | 8.4 | 10.2 | 6.9 | 5.3 | 9.7 | 8.9 | 14.6 | |||||||||||||||||||||||||||
73.9 | 67.3 | 67.5 | 67.2 | 66.0 | 66.6 | 70.7 | 70.8 | 72.0 | ||||||||||||||||||||||||||||
Total Operating Revenue | ||||||||||||||||||||||||||||||||||||
Unum US | 1,569.4 | 1,556.9 | 1,566.8 | 1,539.0 | 1,560.8 | 1,566.6 | 1,583.0 | 1,553.2 | 1,613.0 | |||||||||||||||||||||||||||
Unum UK | 225.1 | 271.4 | 293.4 | 283.3 | 305.8 | 292.3 | 293.6 | 267.1 | 280.4 | |||||||||||||||||||||||||||
Colonial Life | 276.1 | 271.8 | 269.1 | 266.4 | 257.6 | 252.3 | 250.0 | 248.1 | 241.4 | |||||||||||||||||||||||||||
Individual Disability - Closed Block | 453.4 | 450.6 | 461.0 | 453.4 | 483.3 | 497.1 | 478.6 | 482.2 | 504.7 | |||||||||||||||||||||||||||
Corporate and Other | 57.4 | 57.8 | 58.9 | 67.0 | 61.8 | 48.0 | 50.0 | 53.7 | 55.9 | |||||||||||||||||||||||||||
2,581.4 | 2,608.5 | 2,649.2 | 2,609.1 | 2,669.3 | 2,656.3 | 2,655.2 | 2,604.3 | 2,695.4 |
6
Unum Group Quarterly Historical Financial Results by Segment | ||||||||||||||||||||||||||||||||||||
12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | 12/31/07 | 9/30/07 | 6/30/07 | 3/31/07 | 12/31/06 | ||||||||||||||||||||||||||||
Benefits and Expenses | ||||||||||||||||||||||||||||||||||||
Unum US | $ | 1,386.8 | $ | 1,385.3 | $ | 1,395.2 | $ | 1,380.7 | $ | 1,399.9 | $ | 1,408.8 | $ | 1,496.5 | $ | 1,416.3 | $ | 1,479.8 | ||||||||||||||||||
Unum UK | 170.5 | 178.9 | 200.8 | 199.0 | 224.1 | 194.7 | 219.5 | 194.7 | 200.2 | |||||||||||||||||||||||||||
Colonial Life | 209.8 | 205.6 | 200.9 | 199.0 | 198.8 | 189.8 | 185.1 | 188.5 | 190.9 | |||||||||||||||||||||||||||
Individual Disability - Closed Block | 446.3 | 448.1 | 445.8 | 450.5 | 468.3 | 467.7 | 436.0 | 459.7 | 476.0 | |||||||||||||||||||||||||||
Corporate and Other | 57.8 | 65.0 | 65.6 | 66.7 | 127.0 | 70.2 | 95.6 | 81.5 | 83.6 | |||||||||||||||||||||||||||
2,271.2 | 2,282.9 | 2,308.3 | 2,295.9 | 2,418.1 | 2,331.2 | 2,432.7 | 2,340.7 | 2,430.5 | ||||||||||||||||||||||||||||
Income (Loss) from Continuing Operations | ||||||||||||||||||||||||||||||||||||
Before Income Taxes and Net Realized | ||||||||||||||||||||||||||||||||||||
Investment Gain (Loss) | ||||||||||||||||||||||||||||||||||||
Unum US | 182.6 | 171.6 | 171.6 | 158.3 | 160.9 | 157.8 | 86.5 | 136.9 | 133.2 | |||||||||||||||||||||||||||
Unum UK | 54.6 | 92.5 | 92.6 | 84.3 | 81.7 | 97.6 | 74.1 | 72.4 | 80.2 | |||||||||||||||||||||||||||
Colonial Life | 66.3 | 66.2 | 68.2 | 67.4 | 58.8 | 62.5 | 64.9 | 59.6 | 50.5 | |||||||||||||||||||||||||||
Individual Disability - Closed Block | 7.1 | 2.5 | 15.2 | 2.9 | 15.0 | 29.4 | 42.6 | 22.5 | 28.7 | |||||||||||||||||||||||||||
Corporate and Other | (0.4 | ) | (7.2 | ) | (6.7 | ) | 0.3 | (65.2 | ) | (22.2 | ) | (45.6 | ) | (27.8 | ) | (27.7 | ) | |||||||||||||||||||
310.2 | 325.6 | 340.9 | 313.2 | 251.2 | 325.1 | 222.5 | 263.6 | 264.9 | ||||||||||||||||||||||||||||
Income Taxes (Benefit) | 100.8 | 108.7 | 117.7 | 105.4 | 74.2 | 108.1 | 75.5 | 89.0 | (8.8 | ) | ||||||||||||||||||||||||||
Income from Continuing Operations | ||||||||||||||||||||||||||||||||||||
Before Net Realized Investment Gain (Loss) | 209.4 | 216.9 | 223.2 | 207.8 | 177.0 | 217.0 | 147.0 | 174.6 | 273.7 | |||||||||||||||||||||||||||
Net Realized Investment Gain (Loss) | (257.7 | ) | (165.8 | ) | 26.1 | (68.5 | ) | (25.8 | ) | (46.1 | ) | 10.4 | (3.7 | ) | 0.7 | |||||||||||||||||||||
Tax Expense (Benefit) on Net Realized | ||||||||||||||||||||||||||||||||||||
Investment Gain (Loss) | (90.1 | ) | (56.9 | ) | 9.0 | (23.8 | ) | (9.3 | ) | (16.1 | ) | 3.9 | (0.5 | ) | 0.2 | |||||||||||||||||||||
Income from Discontinued | ||||||||||||||||||||||||||||||||||||
Operations, net of tax | - | - | - | - | - | - | - | 6.9 | 1.9 | |||||||||||||||||||||||||||
Net Income | $ | 41.8 | $ | 108.0 | $ | 240.3 | $ | 163.1 | $ | 160.5 | $ | 187.0 | $ | 153.5 | $ | 178.3 | $ | 276.1 | ||||||||||||||||||
Per Common Share - Assuming Dilution | ||||||||||||||||||||||||||||||||||||
Income from Continuing Operations | $ | 0.13 | $ | 0.32 | $ | 0.69 | $ | 0.46 | $ | 0.44 | $ | 0.52 | $ | 0.43 | $ | 0.49 | $ | 0.79 | ||||||||||||||||||
Income from Discontinued Operations, | ||||||||||||||||||||||||||||||||||||
net of tax | - | - | - | - | - | - | - | 0.02 | 0.01 | |||||||||||||||||||||||||||
Net Income | $ | 0.13 | $ | 0.32 | $ | 0.69 | $ | 0.46 | $ | 0.44 | $ | 0.52 | $ | 0.43 | $ | 0.51 | $ | 0.80 |
6.1
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | $ | 1,246.6 | $ | 1,248.1 | $ | 4,963.0 | $ | 5,014.0 | $ | 5,196.0 | ||||||||||
Net Investment Income | 289.6 | 279.1 | 1,136.4 | 1,114.0 | 1,057.5 | |||||||||||||||
Other Income | 33.2 | 33.6 | 132.7 | 135.6 | 108.5 | |||||||||||||||
Total Operating Revenue | 1,569.4 | 1,560.8 | 6,232.1 | 6,263.6 | 6,362.0 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,001.0 | 1,019.0 | 3,998.4 | 4,246.4 | 4,752.1 | |||||||||||||||
Commissions | 127.5 | 124.1 | 518.6 | 501.5 | 505.2 | |||||||||||||||
Interest and Debt Expense - Non-recourse Debt | 0.9 | 1.8 | 4.2 | 7.5 | 1.3 | |||||||||||||||
Deferral of Acquisition Costs | (82.8 | ) | (78.2 | ) | (329.7 | ) | (304.2 | ) | (306.2 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 81.3 | 68.8 | 320.3 | 277.1 | 302.2 | |||||||||||||||
Other Expenses | 258.9 | 264.4 | 1,036.2 | 993.2 | 1,018.7 | |||||||||||||||
Total Benefits and Expenses | 1,386.8 | 1,399.9 | 5,548.0 | 5,721.5 | 6,273.3 | |||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses | $ | 182.6 | $ | 160.9 | $ | 684.1 | $ | 542.1 | $ | 88.7 | ||||||||||
Operating Ratios | ||||||||||||||||||||
Benefit Ratio | 80.3 | % | 81.6 | % | 80.6 | % | 84.7 | % | 91.5 | % | ||||||||||
Other Expense Ratio | 20.8 | % | 21.2 | % | 20.9 | % | 19.8 | % | 19.6 | % | ||||||||||
Before-tax Profit Margin | 14.6 | % | 12.9 | % | 13.8 | % | 10.8 | % | 1.7 | % | ||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses, | ||||||||||||||||||||
as Reported | $ | 182.6 | $ | 160.9 | $ | 684.1 | $ | 542.1 | $ | 88.7 | ||||||||||
Settlement Agreements Claim Reassessment - | ||||||||||||||||||||
Reserve Charge | - | - | - | (76.5 | ) | (349.2 | ) | |||||||||||||
Settlement Agreements Claim Reassessment - | ||||||||||||||||||||
Other Expense Charge | - | - | - | 10.3 | (15.0 | ) | ||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses, as Adjusted | $ | 182.6 | $ | 160.9 | $ | 684.1 | $ | 608.3 | $ | 452.9 | ||||||||||
Operating Ratios, as Adjusted | ||||||||||||||||||||
Benefit Ratio | 80.3 | % | 81.6 | % | 80.6 | % | 83.2 | % | 84.7 | % | ||||||||||
Other Expense Ratio | 20.8 | % | 21.2 | % | 20.9 | % | 20.0 | % | 19.3 | % | ||||||||||
Before-tax Profit Margin | 14.6 | % | 12.9 | % | 13.8 | % | 12.1 | % | 8.7 | % |
7
Unum Group Financial Results for Unum US Group Disability | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | ||||||||||||||||||||
Group Long-term Disability | $ | 459.2 | $ | 473.3 | $ | 1,838.5 | $ | 1,895.7 | $ | 1,953.3 | ||||||||||
Group Short-term Disability | 110.0 | 115.3 | 435.1 | 485.6 | 530.2 | |||||||||||||||
Total Premium Income | 569.2 | 588.6 | 2,273.6 | 2,381.3 | 2,483.5 | |||||||||||||||
Net Investment Income | 156.6 | 158.6 | 631.3 | 648.7 | 638.5 | |||||||||||||||
Other Income | 24.9 | 26.4 | 100.2 | 100.1 | 82.3 | |||||||||||||||
Total Operating Revenue | 750.7 | 773.6 | 3,005.1 | 3,130.1 | 3,204.3 | |||||||||||||||
Benefits and Expenses | �� | |||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 504.9 | 538.7 | 2,043.9 | 2,277.4 | 2,702.5 | |||||||||||||||
Commissions | 39.8 | 40.3 | 165.9 | 167.7 | 175.8 | |||||||||||||||
Interest and Debt Expense - Non-recourse Debt | 0.9 | 1.8 | 4.2 | 7.5 | 1.3 | |||||||||||||||
Deferral of Acquisition Costs | (15.3 | ) | (15.2 | ) | (59.4 | ) | (60.4 | ) | (64.5 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 19.1 | 16.6 | 76.7 | 66.2 | 86.4 | |||||||||||||||
Other Expenses | 141.6 | 148.2 | 572.4 | 561.6 | 588.7 | |||||||||||||||
Total Benefits and Expenses | 691.0 | 730.4 | 2,803.7 | 3,020.0 | 3,490.2 | |||||||||||||||
Operating Income (Loss) Before Income Taxes | ||||||||||||||||||||
and Net Realized Investment Gains and Losses | $ | 59.7 | $ | 43.2 | $ | 201.4 | $ | 110.1 | $ | (285.9 | ) | |||||||||
Operating Ratios | ||||||||||||||||||||
Benefit Ratio | 88.7 | % | 91.5 | % | 89.9 | % | 95.6 | % | 108.8 | % | ||||||||||
Other Expense Ratio | 24.9 | % | 25.2 | % | 25.2 | % | 23.6 | % | 23.7 | % | ||||||||||
Before-tax Profit (Loss) Margin | 10.5 | % | 7.3 | % | 8.9 | % | 4.6 | % | (11.5 | )% | ||||||||||
Premium Persistency: | ||||||||||||||||||||
Group Long-term Disability | 87.8 | % | 85.1 | % | 87.8 | % | ||||||||||||||
Group Short-term Disability | 82.1 | % | 74.0 | % | 85.6 | % | ||||||||||||||
Case Persistency: | ||||||||||||||||||||
Group Long-term Disability | 89.2 | % | 88.4 | % | 87.4 | % | ||||||||||||||
Group Short-term Disability | 88.2 | % | 87.4 | % | 86.2 | % |
7.1
Unum Group Financial Results for Unum US Group Disability - Continued | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Income (Loss) Before Income Taxes | ||||||||||||||||||||
and Net Realized Investment Gains and Losses, | ||||||||||||||||||||
as Reported | $ | 59.7 | $ | 43.2 | $ | 201.4 | $ | 110.1 | $ | (285.9 | ) | |||||||||
Settlement Agreements Claim Reassessment - | ||||||||||||||||||||
Reserve Charge | - | - | - | (76.5 | ) | (349.2 | ) | |||||||||||||
Settlement Agreements Claim Reassessment - | ||||||||||||||||||||
Other Expense Charge | - | - | - | 10.3 | (15.0 | ) | ||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses, | ||||||||||||||||||||
as Adjusted | $ | 59.7 | $ | 43.2 | $ | 201.4 | $ | 176.3 | $ | 78.3 | ||||||||||
Operating Ratios, as Adjusted | ||||||||||||||||||||
Benefit Ratio | 88.7 | % | 91.5 | % | 89.9 | % | 92.4 | % | 94.8 | % | ||||||||||
Other Expense Ratio | 24.9 | % | 25.2 | % | 25.2 | % | 24.0 | % | 23.1 | % | ||||||||||
Before-tax Profit Margin | 10.5 | % | 7.3 | % | 8.9 | % | 7.4 | % | 3.2 | % |
7.2
Unum Group Financial Results for Unum US Group Life and Accidental Death and Dismemberment | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | ||||||||||||||||||||
Group Life | $ | 266.2 | $ | 273.1 | $ | 1,062.8 | $ | 1,107.4 | $ | 1,248.1 | ||||||||||
Accidental Death & Dismemberment | 30.9 | 33.3 | 127.6 | 131.0 | 151.6 | |||||||||||||||
Total Premium Income | 297.1 | 306.4 | 1,190.4 | 1,238.4 | 1,399.7 | |||||||||||||||
Net Investment Income | 31.9 | 32.5 | 126.0 | 134.9 | 141.3 | |||||||||||||||
Other Income | 0.6 | 0.5 | 2.3 | 2.4 | - | |||||||||||||||
Total Operating Revenue | 329.6 | 339.4 | 1,318.7 | 1,375.7 | 1,541.0 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 207.9 | 212.9 | 827.6 | 901.6 | 1,067.3 | |||||||||||||||
Commissions | 21.8 | 22.4 | 85.4 | 88.7 | 90.1 | |||||||||||||||
Deferral of Acquisition Costs | (10.4 | ) | (9.8 | ) | (40.3 | ) | (36.1 | ) | (37.7 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 13.9 | 10.3 | 55.0 | 39.4 | 65.0 | |||||||||||||||
Other Expenses | 46.1 | 43.5 | 180.1 | 164.9 | 178.3 | |||||||||||||||
Total Benefits and Expenses | 279.3 | 279.3 | 1,107.8 | 1,158.5 | 1,363.0 | |||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses | $ | 50.3 | $ | 60.1 | $ | 210.9 | $ | 217.2 | $ | 178.0 | ||||||||||
Operating Ratios | ||||||||||||||||||||
Benefit Ratio | 70.0 | % | 69.5 | % | 69.5 | % | 72.8 | % | 76.3 | % | ||||||||||
Other Expense Ratio | 15.5 | % | 14.2 | % | 15.1 | % | 13.3 | % | 12.7 | % | ||||||||||
Before-tax Profit Margin | 16.9 | % | 19.6 | % | 17.7 | % | 17.5 | % | 12.7 | % | ||||||||||
Premium Persistency: | ||||||||||||||||||||
Group Life | 83.8 | % | 78.8 | % | 81.2 | % | ||||||||||||||
Accidental Death & Dismemberment | 86.4 | % | 80.8 | % | 82.8 | % | ||||||||||||||
Case Persistency: | ||||||||||||||||||||
Group Life | 89.1 | % | 87.7 | % | 86.9 | % | ||||||||||||||
Accidental Death & Dismemberment | 89.2 | % | 88.0 | % | 87.0 | % |
7.3
Unum Group Financial Results for Unum US Supplemental and Voluntary | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | ||||||||||||||||||||
Individual Disability - Recently Issued | $ | 118.6 | $ | 113.2 | $ | 471.5 | $ | 456.7 | $ | 438.5 | ||||||||||
Long-term Care | 149.2 | 137.1 | 580.7 | 532.9 | 492.4 | |||||||||||||||
Voluntary Benefits | 112.5 | 102.8 | 446.8 | 404.7 | 381.9 | |||||||||||||||
Total Premium Income | 380.3 | 353.1 | 1,499.0 | 1,394.3 | 1,312.8 | |||||||||||||||
Net Investment Income | 101.1 | 88.0 | 379.1 | 330.4 | 277.7 | |||||||||||||||
Other Income | 7.7 | 6.7 | 30.2 | 33.1 | 26.2 | |||||||||||||||
Total Operating Revenue | 489.1 | 447.8 | 1,908.3 | 1,757.8 | 1,616.7 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 288.2 | 267.4 | 1,126.9 | 1,067.4 | 982.3 | |||||||||||||||
Commissions | 65.9 | 61.4 | 267.3 | 245.1 | 239.3 | |||||||||||||||
Deferral of Acquisition Costs | (57.1 | ) | (53.2 | ) | (230.0 | ) | (207.7 | ) | (204.0 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 48.3 | 41.9 | 188.6 | 171.5 | 150.8 | |||||||||||||||
Other Expenses | 71.2 | 72.7 | 283.7 | 266.7 | 251.7 | |||||||||||||||
Total Benefits and Expenses | 416.5 | 390.2 | 1,636.5 | 1,543.0 | 1,420.1 | |||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses | $ | 72.6 | $ | 57.6 | $ | 271.8 | $ | 214.8 | $ | 196.6 | ||||||||||
Operating Ratios | ||||||||||||||||||||
Benefit Ratios | ||||||||||||||||||||
Individual Disability - Recently Issued | 53.9 | % | 53.1 | % | 53.3 | % | 56.7 | % | 58.0 | % | ||||||||||
Long-term Care | 107.2 | % | 104.7 | % | 106.1 | % | 106.0 | % | 99.2 | % | ||||||||||
Voluntary Benefits | 57.2 | % | 62.1 | % | 58.0 | % | 60.1 | % | 62.7 | % | ||||||||||
Other Expense Ratio | 18.7 | % | 20.6 | % | 18.9 | % | 19.1 | % | 19.2 | % | ||||||||||
Before-tax Profit Margin | 19.1 | % | 16.3 | % | 18.1 | % | 15.4 | % | 15.0 | % | ||||||||||
Interest Adjusted Loss Ratios | ||||||||||||||||||||
Individual Disability - Recently Issued | 36.2 | % | 34.9 | % | 35.9 | % | 40.0 | % | 42.8 | % | ||||||||||
Long-term Care | 75.6 | % | 75.5 | % | 75.5 | % | 77.7 | % | 73.1 | % | ||||||||||
Premium Persistency: | ||||||||||||||||||||
Individual Disability - Recently Issued | 90.7 | % | 90.6 | % | 90.5 | % | ||||||||||||||
Long-term Care | 95.5 | % | 95.4 | % | 95.3 | % | ||||||||||||||
Voluntary Benefits | 80.4 | % | 79.4 | % | 80.9 | % |
7.4
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | ||||||||||||||||||||
Group Long-term Disability | $ | 144.4 | $ | 191.0 | $ | 675.9 | $ | 752.6 | $ | 638.9 | ||||||||||
Group Life | 29.5 | 50.4 | 174.6 | 177.4 | 171.0 | |||||||||||||||
Individual Disability | 8.4 | 10.0 | 38.8 | 38.3 | 32.9 | |||||||||||||||
Total Premium Income | 182.3 | 251.4 | 889.3 | 968.3 | 842.8 | |||||||||||||||
Net Investment Income | 42.1 | 54.0 | 181.9 | 187.4 | 170.1 | |||||||||||||||
Other Income | 0.7 | 0.4 | 2.0 | 3.1 | 0.1 | |||||||||||||||
Total Operating Revenue | 225.1 | 305.8 | 1,073.2 | 1,158.8 | 1,013.0 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 114.8 | 152.9 | 511.4 | 574.3 | 553.5 | |||||||||||||||
Commissions | 12.3 | 17.7 | 59.0 | 67.0 | 49.7 | |||||||||||||||
Deferral of Acquisition Costs | (8.0 | ) | (11.0 | ) | (37.4 | ) | (41.2 | ) | (34.4 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 9.3 | 12.8 | 32.4 | 49.4 | 32.0 | |||||||||||||||
Other Expenses | 42.1 | 51.7 | 183.8 | 183.5 | 158.9 | |||||||||||||||
Total Benefits and Expenses | 170.5 | 224.1 | 749.2 | 833.0 | 759.7 | |||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses | $ | 54.6 | $ | 81.7 | $ | 324.0 | $ | 325.8 | $ | 253.3 | ||||||||||
Operating Ratios | ||||||||||||||||||||
Benefit Ratio | 63.0 | % | 60.8 | % | 57.5 | % | 59.3 | % | 65.7 | % | ||||||||||
Other Expense Ratio | 23.1 | % | 20.6 | % | 20.7 | % | 19.0 | % | 18.9 | % | ||||||||||
Before-tax Profit Margin | 30.0 | % | 32.5 | % | 36.4 | % | 33.6 | % | 30.1 | % | ||||||||||
Premium Persistency: | ||||||||||||||||||||
Group Long-term Disability | 87.4 | % | 88.0 | % | 90.4 | % | ||||||||||||||
Group Life | 74.9 | % | 70.5 | % | 69.1 | % | ||||||||||||||
Individual Disability | 87.6 | % | 89.4 | % | 88.2 | % |
8
Unum Group Financial Results for Unum UK Segment | ||||||||||||||||||||
(in millions of pounds) | Three Months Ended | Year Ended | ||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | ||||||||||||||||||||
Group Long-term Disability | £ | 91.7 | £ | 93.5 | £ | 364.4 | £ | 375.9 | £ | 346.3 | ||||||||||
Group Life | 18.8 | 24.6 | 93.3 | 88.5 | 92.4 | |||||||||||||||
Individual Disability | 5.3 | 4.9 | 20.9 | 19.1 | 17.8 | |||||||||||||||
Total Premium Income | 115.8 | 123.0 | 478.6 | 483.5 | 456.5 | |||||||||||||||
Net Investment Income | 26.7 | 26.4 | 98.5 | 93.5 | 92.1 | |||||||||||||||
Other Income | 0.5 | 0.2 | 1.2 | 1.6 | - | |||||||||||||||
Total Operating Revenue | 143.0 | 149.6 | 578.3 | 578.6 | 548.6 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 72.8 | 74.7 | 275.8 | 286.8 | 300.2 | |||||||||||||||
Commissions | 7.9 | 8.7 | 31.9 | 33.5 | 27.0 | |||||||||||||||
Deferral of Acquisition Costs | (5.1 | ) | (5.4 | ) | (20.1 | ) | (20.6 | ) | (18.7 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 6.0 | 6.3 | 17.9 | 24.7 | 17.1 | |||||||||||||||
Other Expenses | 26.8 | 25.3 | 99.6 | 91.6 | 86.1 | |||||||||||||||
Total Benefits and Expenses | 108.4 | 109.6 | 405.1 | 416.0 | 411.7 | |||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses | £ | 34.6 | £ | 40.0 | £ | 173.2 | £ | 162.6 | £ | 136.9 | ||||||||||
Weighted Average Pound/Dollar Exchange Rate | 1.578 | 2.043 | 1.871 | 2.004 | 1.851 |
8.1
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | ||||||||||||||||||||
Accident, Sickness, and Disability | $ | 154.2 | $ | 144.7 | $ | 606.9 | $ | 566.6 | $ | 533.3 | ||||||||||
Life | 40.8 | 37.0 | 157.4 | 143.5 | 130.5 | |||||||||||||||
Cancer and Critical Illness | 54.1 | 50.3 | 213.0 | 197.1 | 178.3 | |||||||||||||||
Total Premium Income | 249.1 | 232.0 | 977.3 | 907.2 | 842.1 | |||||||||||||||
Net Investment Income | 26.9 | 25.6 | 105.7 | 99.9 | 93.6 | |||||||||||||||
Other Income | 0.1 | - | 0.4 | 0.9 | 1.1 | |||||||||||||||
Total Operating Revenue | 276.1 | 257.6 | 1,083.4 | 1,008.0 | 936.8 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 120.2 | 111.4 | 464.0 | 437.8 | 441.4 | |||||||||||||||
Commissions | 52.7 | 51.8 | 211.8 | 201.6 | 184.9 | |||||||||||||||
Deferral of Acquisition Costs | (55.5 | ) | (53.5 | ) | (223.8 | ) | (210.9 | ) | (187.6 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 41.9 | 38.7 | 166.4 | 153.9 | 144.4 | |||||||||||||||
Other Expenses | 50.5 | 50.4 | 196.9 | 179.8 | 155.0 | |||||||||||||||
Total Benefits and Expenses | 209.8 | 198.8 | 815.3 | 762.2 | 738.1 | |||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses | $ | 66.3 | $ | 58.8 | $ | 268.1 | $ | 245.8 | $ | 198.7 | ||||||||||
Operating Ratios | ||||||||||||||||||||
Benefit Ratio | 48.3 | % | 48.0 | % | 47.5 | % | 48.3 | % | 52.4 | % | ||||||||||
Other Expense Ratio | 20.3 | % | 21.7 | % | 20.1 | % | 19.8 | % | 18.4 | % | ||||||||||
Before-tax Profit Margin | 26.6 | % | 25.3 | % | 27.4 | % | 27.1 | % | 23.6 | % | ||||||||||
Premium Persistency: | ||||||||||||||||||||
Accident, Sickness, and Disability | 75.8 | % | 75.9 | % | 74.9 | % | ||||||||||||||
Life | 84.7 | % | 83.8 | % | 84.2 | % | ||||||||||||||
Cancer and Critical Illness | 84.0 | % | 84.1 | % | 82.3 | % |
9
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | $ | 239.2 | $ | 252.2 | $ | 952.3 | $ | 1,009.9 | $ | 1,062.8 | ||||||||||
Net Investment Income | 188.9 | 206.0 | 767.5 | 827.6 | 828.7 | |||||||||||||||
Other Income | 25.3 | 25.1 | 98.6 | 103.7 | 105.1 | |||||||||||||||
Total Operating Revenue | 453.4 | 483.3 | 1,818.4 | 1,941.2 | 1,996.6 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 388.0 | 404.9 | 1,544.8 | 1,614.5 | 1,709.7 | |||||||||||||||
Commissions | 15.8 | 16.6 | 62.7 | 69.1 | 76.2 | |||||||||||||||
Interest and Debt Expense - Non-recourse Debt | 7.0 | 8.3 | 35.1 | 8.3 | - | |||||||||||||||
Other Expenses | 35.5 | 38.5 | 148.1 | 139.8 | 139.4 | |||||||||||||||
Total Benefits and Expenses | 446.3 | 468.3 | 1,790.7 | 1,831.7 | 1,925.3 | |||||||||||||||
Operating Income Before Income Taxes | ||||||||||||||||||||
and Net Realized Investment Gains and Losses | $ | 7.1 | $ | 15.0 | $ | 27.7 | $ | 109.5 | $ | 71.3 | ||||||||||
Operating Ratios | ||||||||||||||||||||
Interest Adjusted Loss Ratio | 82.6 | % | 83.8 | % | 82.2 | % | 84.1 | % | 90.5 | % | ||||||||||
Premium Persistency | 93.8 | % | 94.3 | % | 94.4 | % | ||||||||||||||
Operating Income Before Income Taxes | ||||||||||||||||||||
and Net Realized Investment Gains and Losses, | ||||||||||||||||||||
as Reported | $ | 7.1 | $ | 15.0 | $ | 27.7 | $ | 109.5 | $ | 71.3 | ||||||||||
Settlement Agreements Claim Reassessment - | ||||||||||||||||||||
Reserve Charge | - | - | - | 10.7 | (47.2 | ) | ||||||||||||||
Settlement Agreements Claim Reassessment - | ||||||||||||||||||||
Other Expense Charge | - | - | - | 2.5 | - | |||||||||||||||
Operating Income Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses, | ||||||||||||||||||||
as Adjusted | $ | 7.1 | $ | 15.0 | $ | 27.7 | $ | 96.3 | $ | 118.5 | ||||||||||
Interest Adjusted Loss Ratio, as Adjusted | 82.6 | % | 83.8 | % | 82.2 | % | 85.2 | % | 86.1 | % |
10
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2008 | 12/31/2007 | 12/31/2008 | 12/31/2007 | 12/31/2006 | ||||||||||||||||
Operating Revenue | ||||||||||||||||||||
Premium Income | $ | 0.5 | $ | 0.2 | $ | 1.4 | $ | 1.7 | $ | 4.5 | ||||||||||
Net Investment Income | 42.3 | 54.7 | 197.5 | 181.0 | 170.7 | |||||||||||||||
Other Income | 14.6 | 6.9 | 42.2 | 30.8 | 49.5 | |||||||||||||||
Total Operating Revenue | 57.4 | 61.8 | 241.1 | 213.5 | 224.7 | |||||||||||||||
Benefits and Expenses | ||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 24.5 | 27.5 | 107.8 | 115.2 | 120.5 | |||||||||||||||
Commissions | 0.2 | 0.4 | 1.2 | 1.9 | 3.0 | |||||||||||||||
Interest and Debt Expense | 26.9 | 38.7 | 117.0 | 167.3 | 190.5 | |||||||||||||||
Cost Related to Early Retirement of Debt | - | 55.6 | 0.4 | 58.8 | 25.8 | |||||||||||||||
Other Expenses | 6.2 | 4.8 | 28.7 | 31.1 | 33.7 | |||||||||||||||
Total Benefits and Expenses | 57.8 | 127.0 | 255.1 | 374.3 | 373.5 | |||||||||||||||
Operating Loss Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses | $ | (0.4 | ) | $ | (65.2 | ) | $ | (14.0 | ) | $ | (160.8 | ) | $ | (148.8 | ) | |||||
Operating Loss Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses, | ||||||||||||||||||||
as Reported | $ | (0.4 | ) | $ | (65.2 | ) | $ | (14.0 | ) | $ | (160.8 | ) | $ | (148.8 | ) | |||||
Broker Compensation Settlement | - | - | - | - | (18.5 | ) | ||||||||||||||
Interest on Federal Income Tax Refund | - | - | - | - | 2.6 | |||||||||||||||
Cost Related to Early Retirement of Debt | - | (55.6 | ) | - | (58.8 | ) | (25.8 | ) | ||||||||||||
Operating Loss Before Income Taxes and | ||||||||||||||||||||
Net Realized Investment Gains and Losses, | ||||||||||||||||||||
as Adjusted | $ | (0.4 | ) | $ | (9.6 | ) | $ | (14.0 | ) | $ | (102.0 | ) | $ | (107.1 | ) |
11
December 31, 2008 | ||||||||||||||||||||||||||||||||
Gross | Total | |||||||||||||||||||||||||||||||
Policy | Claim Reserves | Reinsurance | Total | |||||||||||||||||||||||||||||
Reserves | % | Incurred | IBNR | % | Total | Ceded | Net | |||||||||||||||||||||||||
Group Disability | $ | - | - | % | $ | 7,799.1 | $ | 583.1 | 34.3 | % | $ | 8,382.2 | $ | 81.1 | $ | 8,301.1 | ||||||||||||||||
Group Life and Accidental Death & Dismemberment | 72.9 | 0.6 | 750.1 | 170.3 | 3.8 | 993.3 | 0.9 | 992.4 | ||||||||||||||||||||||||
Individual Disability - Recently Issued | 493.6 | 3.9 | 882.5 | 90.3 | 4.0 | 1,466.4 | 84.1 | 1,382.3 | ||||||||||||||||||||||||
Long-term Care | 2,915.3 | 22.9 | 295.9 | 35.2 | 1.3 | 3,246.4 | 48.9 | 3,197.5 | ||||||||||||||||||||||||
Voluntary Benefits | 925.5 | 7.2 | 21.1 | 37.0 | 0.2 | 983.6 | 19.1 | 964.5 | ||||||||||||||||||||||||
Unum US Segment | 4,407.3 | 34.6 | 9,748.7 | 915.9 | 43.6 | 15,071.9 | 234.1 | 14,837.8 | ||||||||||||||||||||||||
Unum UK Segment | 22.6 | 0.2 | 1,887.6 | 181.5 | 8.5 | 2,091.7 | 102.7 | 1,989.0 | ||||||||||||||||||||||||
Colonial Life Segment | 1,172.2 | 9.2 | 237.0 | 97.3 | 1.4 | 1,506.5 | 31.1 | 1,475.4 | ||||||||||||||||||||||||
Individual Disability - Closed Block Segment | 1,527.6 | 12.0 | 10,239.9 | 350.3 | 43.4 | 12,117.8 | 1,456.6 | 10,661.2 | ||||||||||||||||||||||||
Corporate and Other Segment | 5,605.4 | 44.0 | 490.7 | 270.1 | 3.1 | 6,366.2 | 4,853.8 | 1,512.4 | ||||||||||||||||||||||||
Subtotal, Excluding Unrealized Adjustment | $ | 12,735.1 | 100.0 | % | $ | 22,603.9 | $ | 1,815.1 | 100.0 | % | 37,154.1 | 6,678.3 | 30,475.8 | |||||||||||||||||||
Unrealized Adjustment to Reserves for Unrealized | ||||||||||||||||||||||||||||||||
Investment Losses | (803.1 | ) | (31.9 | ) | (771.2 | ) | ||||||||||||||||||||||||||
Consolidated | $ | 36,351.0 | $ | 6,646.4 | $ | 29,704.6 |
The decrease in the Unum US Segment IBNR from December 31, 2007 is due to a slight decline in insured lives in the group disability and group life and accidental death and dismemberment lines of business. |
The increase in Unum US Segment Policy and Claim Reserves Incurred from December 31, 2007 is due primarily to growth in the active life reserves for the Unum US long-term care line of business. |
The decrease in the Unum UK Segment amounts from December 31, 2007 is due primarily to the decline in the foreign exchange rate. |
Unum Group implemented a new reserve valuation system for its US individual disability reserves, for generally accepted accounting principles (GAAP) reporting, during 2008. The new system establishes claim reserves and incurred but not reported and in course of settlement claim liabilities using revised assumptions based on current experience and specified valuation methodologies. The implementation did not have a material effect on our results of operations as reported under GAAP. December 31, 2007 reserve categories have been reclassified to conform to current year presentation. This change was implemented for statutory reporting in 2007 (see page 14.1). |
12
Unum Group Reserves | ||||||||||||||||||||||||||||||||
December 31, 2007 | ||||||||||||||||||||||||||||||||
Gross | Total | |||||||||||||||||||||||||||||||
Policy | Claim Reserves | Reinsurance | Total | |||||||||||||||||||||||||||||
Reserves | % | Incurred | IBNR | % | Total | Ceded | Net | |||||||||||||||||||||||||
Group Disability | $ | - | - | % | $ | 7,770.4 | $ | 596.9 | 33.8 | % | $ | 8,367.3 | $ | 92.9 | $ | 8,274.4 | ||||||||||||||||
Group Life and Accidental Death & Dismemberment | 73.9 | 0.6 | 772.4 | 178.5 | 3.8 | 1,024.8 | 3.4 | 1,021.4 | ||||||||||||||||||||||||
Individual Disability - Recently Issued | 458.4 | 3.8 | 808.3 | 86.6 | 3.6 | 1,353.3 | 79.4 | 1,273.9 | ||||||||||||||||||||||||
Long-term Care | 2,478.2 | 20.4 | 244.3 | 32.6 | 1.1 | 2,755.1 | 52.6 | 2,702.5 | ||||||||||||||||||||||||
Voluntary Benefits | 853.1 | 7.0 | 19.1 | 35.0 | 0.2 | 907.2 | 14.6 | 892.6 | ||||||||||||||||||||||||
Unum US Segment | 3,863.6 | 31.8 | 9,614.5 | 929.6 | 42.5 | 14,407.7 | 242.9 | 14,164.8 | ||||||||||||||||||||||||
Unum UK Segment | 30.7 | 0.2 | 2,420.4 | 268.8 | 10.8 | 2,719.9 | 149.3 | 2,570.6 | ||||||||||||||||||||||||
Colonial Life Segment | 1,091.7 | 9.0 | 239.9 | 104.1 | 1.4 | 1,435.7 | 33.4 | 1,402.3 | ||||||||||||||||||||||||
Individual Disability - Closed Block Segment | 1,657.2 | 13.6 | 10,043.5 | 362.0 | 42.0 | 12,062.7 | 1,374.4 | 10,688.3 | ||||||||||||||||||||||||
Corporate and Other Segment | 5,515.2 | 45.4 | 518.3 | 288.9 | 3.3 | 6,322.4 | 4,770.8 | 1,551.6 | ||||||||||||||||||||||||
Subtotal, Excluding Unrealized Adjustment | $ | 12,158.4 | 100.0 | % | $ | 22,836.6 | $ | 1,953.4 | 100.0 | % | 36,948.4 | 6,570.8 | 30,377.6 | |||||||||||||||||||
Adjustment to Reserves for Unrealized | ||||||||||||||||||||||||||||||||
Investment Gains | 859.3 | - | 859.3 | |||||||||||||||||||||||||||||
Consolidated | $ | 37,807.7 | $ | 6,570.8 | $ | 31,236.9 |
12.1
Bonds (Fair Value) | 12/31/08 | Selected Statistics | 12/31/08 | 9/30/08 | |||||||||||||||
Public (1) | $ | 20,479.3 | 64.1 | % | Portfolio Yield (2) | 6.72 | % | 6.70% | |||||||||||
Asset-Backed Securities | 281.9 | 0.9 | Average Duration | 7.47 | 7.62 | ||||||||||||||
Residential Mortgage-Backed Securities | 3,659.6 | 11.5 | Average Credit Quality | A | A | ||||||||||||||
Commercial Mortgage-Backed Securities | 4.0 | - | |||||||||||||||||
Private Placements | 3,307.0 | 10.4 | |||||||||||||||||
High Yield | 1,627.8 | 5.1 | |||||||||||||||||
Government Securities | 2,441.7 | 7.6 | |||||||||||||||||
Municipal Securities | 124.7 | 0.4 | |||||||||||||||||
Total | $ | 31,926.0 | 100.0 | % | |||||||||||||||
Quality Ratings of Bonds | Book Value | Fair Value | Schedule BA and Non-Current | ||||||||||||||||
Aaa | 19.4 | % | 22.0 | % | Total Non-Current Investments | $ | 11.8 | $ | 11.5 | ||||||||||
Aa | 6.6 | 7.1 | Total Schedule BA Assets | $ | 88.3 | $ | 88.5 | ||||||||||||
A | 28.1 | 29.2 | |||||||||||||||||
Baa | 39.2 | 36.6 | |||||||||||||||||
Below Baa | 6.7 | 5.1 | |||||||||||||||||
Total | 100.0 | % | 100.0 | % | |||||||||||||||
(1) Includes $20.4 million of collateralized debt obligations. | |||||||||||||||||||
(2) Bond equivalent yield is a book value and duration weighted average of the yield on the fixed income securities in the portfolio. |
13
Unum Group Investment Fact Sheet at December 31, 2008 | ||||||||||||||||||||||||
Fixed Maturity Bonds - By Industry Classification - Unrealized Gain/Loss | ||||||||||||||||||||||||
Classification | Fair Value | Net Unrealized Gain (Loss) | Fair Value of Bonds with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Bonds with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||
Basic Industry | $ | 1,789.3 | $ | (345.0 | ) | $ | 1,423.7 | $ | 360.6 | $ | 365.6 | $ | 15.6 | |||||||||||
Canadian | 254.2 | 57.5 | - | - | 254.2 | 57.5 | ||||||||||||||||||
Capital Goods | 2,538.4 | (327.3 | ) | 1,719.1 | 418.6 | 819.3 | 91.3 | |||||||||||||||||
Communications | 1,945.6 | (207.4 | ) | 1,095.6 | 285.8 | 850.0 | 78.4 | |||||||||||||||||
Consumer Cyclical | 1,210.7 | (298.7 | ) | 907.8 | 315.9 | 302.9 | 17.2 | |||||||||||||||||
Consumer Non-Cyclical | 4,192.2 | (168.7 | ) | 2,445.4 | 303.6 | 1,746.8 | 134.9 | |||||||||||||||||
Energy (Oil & Gas) | 2,245.2 | (170.1 | ) | 1,347.1 | 252.0 | 898.1 | 81.9 | |||||||||||||||||
Financial Institutions | 2,577.8 | (327.1 | ) | 2,185.6 | 340.8 | 392.2 | 13.7 | |||||||||||||||||
Mortgage/Asset-Backed | 3,945.5 | 253.8 | 346.1 | 55.1 | 3,599.4 | 308.9 | ||||||||||||||||||
Sovereigns | 947.2 | 56.3 | 357.6 | 12.6 | 589.6 | 68.9 | ||||||||||||||||||
Technology | 633.3 | (87.9 | ) | 456.5 | 105.7 | 176.8 | 17.8 | |||||||||||||||||
Transportation | 888.0 | (15.0 | ) | 413.0 | 56.0 | 475.0 | 41.0 | |||||||||||||||||
U.S. Government Agencies | ||||||||||||||||||||||||
and Municipalities | 1,875.3 | 166.2 | 731.8 | 68.3 | 1,143.5 | 234.5 | ||||||||||||||||||
Utilities | 6,883.3 | (682.5 | ) | 4,995.8 | 799.1 | 1,887.5 | 116.6 | |||||||||||||||||
Total | $ | 31,926.0 | $ | (2,095.9 | ) | $ | 18,425.1 | $ | 3,374.1 | $ | 13,500.9 | $ | 1,278.2 |
Fixed Maturity Bonds - Financial Institutions Classification - Unrealized Gain/Loss | ||||||||||||||||||||||||
Associations | $ | 12.1 | $ | - | $ | 12.1 | $ | - | $ | - | $ | - | ||||||||||||
Banking | 1,463.4 | (184.2 | ) | 1,203.4 | 191.7 | 260.0 | 7.5 | |||||||||||||||||
Bond Funds | 20.4 | (0.2 | ) | 16.8 | 0.3 | 3.6 | 0.1 | |||||||||||||||||
Brokerage | 138.8 | (14.7 | ) | 136.0 | 14.7 | 2.8 | - | |||||||||||||||||
Finance Non-Captive | 58.2 | (8.0 | ) | 55.2 | 8.0 | 3.0 | - | |||||||||||||||||
Finance Captive | 155.9 | (4.8 | ) | 116.0 | 5.0 | 39.9 | 0.2 | |||||||||||||||||
Insurance | 619.0 | (101.2 | ) | 559.0 | 105.4 | 60.0 | 4.2 | |||||||||||||||||
Other Financial Institutions | 55.5 | (0.3 | ) | 32.6 | 2.0 | 22.9 | 1.7 | |||||||||||||||||
Real Estate Management Services | 54.5 | (13.7 | ) | 54.5 | 13.7 | - | - | |||||||||||||||||
Total | $ | 2,577.8 | $ | (327.1 | ) | $ | 2,185.6 | $ | 340.8 | $ | 392.2 | $ | 13.7 |
Gross Unrealized Loss on Fixed Maturity Bonds 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 | $ | 2,226.2 | $ | 171.3 | $ | 153.4 | $ | 25.6 | ||||||||||||||||
91 through 180 days | 3,260.8 | 336.7 | 294.3 | 66.2 | ||||||||||||||||||||
181 through 270 days | 2,463.4 | 307.5 | 319.7 | 80.7 | ||||||||||||||||||||
271 days to 1 year | 2,080.8 | 368.1 | 96.5 | 50.0 | ||||||||||||||||||||
Greater than 1 year | 6,855.5 | 1,535.4 | 674.5 | 432.6 | ||||||||||||||||||||
Total | $ | 16,886.7 | $ | 2,719.0 | $ | 1,538.4 | $ | 655.1 |
13.1
Unum Group Investment Fact Sheet at December 31, 2008 | |||||||||||||||||||
Asset and Mortgage-Backed Securities Portfolio | |||||||||||||||||||
Book Value | Fair Value | % of Total Bond Fair Value | Average Rating | ||||||||||||||||
Asset-Backed Securities | |||||||||||||||||||
Credit Cards | $ | 324.8 | $ | 277.0 | 7.0 | % | 0.9 | % | AAA | ||||||||||
Rate Reduction Bonds | 4.7 | 4.4 | 0.1 | - | AAA | ||||||||||||||
Home Equity | 1.3 | 0.5 | - | - | A3 | ||||||||||||||
Collateralized Debt Obligations | - | - | - | - | - | ||||||||||||||
Total | 330.8 | 281.9 | 7.1 | 0.9 | AAA | ||||||||||||||
Residential Mortgage-Backed Securities | |||||||||||||||||||
Agency CMOs | 3,332.0 | 3,640.6 | 92.3 | 11.4 | AAA | ||||||||||||||
Whole Loans | 24.7 | 19.0 | 0.5 | 0.1 | AAA | ||||||||||||||
Alt-A | - | - | - | - | - | ||||||||||||||
Subprime | - | - | - | - | - | ||||||||||||||
Collateralized Debt Obligations | - | - | - | - | - | ||||||||||||||
Total | 3,356.7 | 3,659.6 | 92.8 | 11.5 | AAA | ||||||||||||||
Commercial Mortgage-Backed Securities | 4.2 | 4.0 | 0.1 | - | AA1 | ||||||||||||||
Total | $ | 3,691.7 | $ | 3,945.5 | 100.0 | % | 12.4 | % | AAA |
13.2
As of | ||||||||||||||||
As of December 31, 2008 | December 31, 2007 | |||||||||||||||
Capital and | Capital and | Capital and | ||||||||||||||
Surplus | AVR | Surplus + AVR | Surplus + AVR | |||||||||||||
Traditional U.S. Life Insurance Companies | ||||||||||||||||
Provident Life and Accident | $ | 428.4 | $ | 67.6 | $ | 496.0 | $ | 503.2 | ||||||||
Unum Life of America | 1,353.3 | 131.2 | 1,484.5 | 1,622.3 | ||||||||||||
Paul Revere Life (1) | 340.3 | 27.0 | 367.3 | 496.6 | ||||||||||||
Colonial Life & Accident | 379.6 | 18.4 | 398.0 | 388.9 | ||||||||||||
Provident Life and Casualty | 121.1 | 4.2 | 125.3 | 101.9 | ||||||||||||
First Unum Life | 193.8 | 12.5 | 206.3 | 193.8 | ||||||||||||
Paul Revere Variable (1) | 94.7 | 0.2 | 94.9 | 115.1 | ||||||||||||
(1) Capital and Surplus of Paul Revere Variable is included in Paul Revere Life | ||||||||||||||||
Special Purpose Reinsurance Vehicles | ||||||||||||||||
Tailwind Reinsurance Company | $ | 111.8 | $ | - | $ | 111.8 | $ | 125.2 | ||||||||
Northwind Reinsurance Company | 1,188.7 | 1.7 | 1,190.4 | 1,254.5 | ||||||||||||
UnumProvident International Ltd. | 512.9 | - | 512.9 | 343.4 |
14