Unum 2014 Annual Report Download - page 155

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UNUM • 2014 ANNUAL REPORT 153
Note 13. Segment Information
We have three principal operating business segments: Unum US, Unum UK, and Colonial Life. Our other segments are the Closed Block
and the Corporate segments.
The Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and
dismemberment products, and supplemental and voluntary lines of business, which are comprised of individual disability and voluntary
benefits products. These products are marketed through our field sales personnel who work in conjunction with independent brokers
and consultants.
The Unum UK segment includes insurance for group long-term disability, group life, and supplemental lines of business, which include
individual disability and critical illness products. Unum UK’s products are sold primarily in the United Kingdom through field sales personnel
and independent brokers and consultants.
The Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness
products marketed to employees at the workplace through an independent contractor agency sales force and brokers.
The Closed Block segment consists of individual disability, group and individual long-term care, and other insurance products no longer
actively marketed. The individual disability line of business in this segment generally consists of policies we sold prior to the mid-1990s
and entirely discontinued selling in 2004, other than update features contractually allowable on existing policies. We discontinued offering
individual long-term care in 2009 and group long-term care in 2012. Other insurance products include group pension, individual life and
corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous product lines.
The Corporate segment includes investment income on corporate assets not specifically allocated to a line of business, interest expense
on corporate debt other than non-recourse debt, and certain other corporate income and expense not allocated to a line of business.
We measure and analyze our segment performance using non-GAAP financial measures. A non-GAAP financial measure is a numerical
measure of a company’s performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or
included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP financial measures of
“operating revenue” and “operating income” or “operating loss” 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, non-operating retirement-related
gains or losses, and certain other items as specified in the reconciliations below. We believe operating revenue and operating income or
loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business.