Unum 2009 Annual Report Download - page 49

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47
Unum 2009 Annual Report
Unum US Group Disability Operating Results
Shown below are financial results and key performance indicators for Unum US group disability.
Year Ended December 31
(in millions of dollars, except ratios) 2009 % Change 2008 % Change 2007
Operating Revenue
Premium Income
Group Long-term Disability $1,726.9 (6.1)% $1,838.5 (3.0)% $1,895.7
Group Short-term Disability 432.8 (0.5) 435.1 (10.4) 485.6
Total Premium Income 2,159.7 (5.0) 2,273.6 (4.5) 2,381.3
Net Investment Income 629.4 (0.3) 631.3 (2.7) 648.7
Other Income 88.9 (11.3) 100.2 0.1 100.1
Total 2,878.0 (4.2) 3,005.1 (4.0) 3,130.1
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,862.8 (8.9) 2,043.9 (10.3) 2,277.4
Commissions 162.2 (2.2) 165.9 (1.1) 167.7
Interest and Debt Expense 2.0 (52.4) 4.2 (44.0) 7.5
Deferral of Acquisition Costs (62.5) 5.2 (59.4) (1.7) (60.4)
Amortization of Deferred Acquisition Costs 67.3 (12.3) 76.7 15.9 66.2
Other Expenses 572.6 — 572.4 1.9 561.6
Total 2,604.4 (7.1) 2,803.7 (7.2) 3,020.0
Operating Income Before Income Tax and Net
Realized Investment Gains and Losses $ 273.6 35.8 $ 201.4 82.9 $ 110.1
Operating Ratios (% of Premium Income):
Benefit Ratio (1) 86.3% 89.9% 95.6%
Other Expense Ratio (2) 26.5% 25.2% 23.6%
Before-tax Operating Income Ratio (3) 12.7% 8.9% 4.6%
Premium Persistency:
Group Long-term Disability 86.9% 87.8% 85.1%
Group Short-term Disability 86.8% 82.1% 74.0%
Case Persistency:
Group Long-term Disability 87.4% 89.2% 88.4%
Group Short-term Disability 86.5% 88.2% 87.4%
(1) Included in this ratio for 2007 is a charge of $76.5 million related to the claim reassessment process. Excluding this charge, the benefit ratio for 2007 would have been 92.4%.
(2) Included in this ratio for 2007 is an expense reduction of $10.3 million related to the claim reassessment process. Excluding this item, the other expense ratio for 2007
would have been 24.0%.
(3) Included in this ratio for 2007 is a charge of $66.2 million related to the claim reassessment process. Excluding this charge, the before-tax operating income ratio for 2007
would have been 7.4%.