Unum 2009 Annual Report Download - page 7

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5
“ ...we enter 2010 with a strong connection
to our markets and well-designed business
plans, as well as a continued focus on
consistent, disciplined execution of these
plans, a solid financial foundation and
significant financial flexibility.”
308%
2005
299%
2006
344%
2007
332%
2008
382%
2009
Risk-Based Capital*
*Combined RBC for Traditional
U.S. Insurance Subsidiaries
helped earn us a place on Newsweek magazine’s inaugural
list of the top 100 “Greenest Companies in America.”
Today it’s essential that all companies take a more active role
in the political process, and we have certainly risen to the call.
Our commitment has taken many forms but has been especially
targeted toward educating policymakers in both the U.S. and U.K.
on the role our industry plays in protecting people’s financial
well-being. Working people today face dangerous gaps in their
financial security, and we at Unum are advocates for continued
cooperation between the public and private sectors to address
this critical need. Many individuals who have protection against
financial uncertainty acquire that protection through the workplace,
and we commend employers for the critical role they play in
providing this access to benefits. We are proud to be in this
business and will continue to work closely with policymakers
to help them recognize its importance. Decisions in Congress
and Parliament can have a significant impact on our markets
and our customers, and I can assure you we are engaged in
the process.
LOOKING AHEAD
This remains an unforgiving environment particularly for
financial services companies. Many will not only struggle to
regain their financial foothold, they will continue to battle
to restore trust and confidence on the part of many of their
stakeholders. Unfortunately, often there isn’t a simple or
immediate fix, and confidence is restored gradually over time
through performance — performance achieved by getting
back to the basics, focusing on customers, and developing
a sustainable business plan — something that has served us
well since 2003.
Because of these actions, we enter 2010 with a strong
connection to our markets and sound business plans, as well as
a continued focus on consistent, disciplined execution of these
plans, a solid financial foundation and significant financial
flexibility. We intend to stay with what has served us well
throughout this challenging environment, including staying
close to our customers and capitalizing on opportunities as
they emerge. While there are some clear signs of an economic
recovery, unemployment in both the U.S. and the U.K. remains
high — which will certainly impact our ability to grow — yet I have
never been more confident in our future.
We have delivered strong performance in some of the most
uncertain times any of us have ever experienced, which gives
me great confidence in our ability to capitalize on our position
in the marketplace. To do so, though, we will need to continue
to focus on the basics, a strategy that has served our customers,
employees, and shareholders well, and includes:
• A commitment to maintaining a strategy focused on meeting
the ever-changing needs of customers, regulators, and all
of our stakeholders;
• A focus on discipline and risk management — something
that has served us well and, when absent, has proven to
be the downfall of many in this environment;
• Maintaining a “fortress” balance sheet able to support our
business needs and a source of value to our shareholders; and
• Continuing to be a company noted for its commitment to
do the right things — for customers, the communities in
which we operate, our employees, and all those who put
their faith in our company.
I want to close by thanking all of our employees for their
continued dedication to delivering on our commitments to our
stakeholders, to our board of directors for their wise counsel
and support, and to our shareholders for continuing to show
your support of the company. For our part, I’m confident that if
we continue to execute on our business plans, we can build on
the progress we’ve made over the last few years and continue
to create long-term value for our stakeholders.
On behalf of all of us at Unum, I’d like to thank you for your
continued support of our company.
Regards,
Thomas R. Watjen
President and Chief Executive Officer