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42 UNUM • 2014 ANNUAL REPORT
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Consolidated Sales Results
Shown below are sales results for our three principal operating business segments.
Year Ended December 31
(in millions) 2014 % Change 2013 % Change 2012
Unum US $902.1 21.0% $745.6 (2.0)% $760.5
Unum UK £ 51.9 7.2% £ 48.4 (18.7)% £ 59.5
Colonial Life $410.1 11.6% $367.6 1.6% $361.9
Sales shown in the preceding chart generally represent the annualized premium income on new sales which we expect to receive and
report as premium income during the next 12 months following or beginning in the initial quarter in which the sale is reported, depending
on the effective date of the new sale. Sales do not correspond to premium income reported as revenue in accordance with GAAP. This is
because new annualized sales premiums reflect current sales performance and what we expect to recognize as premium income over a
12 month period, while premium income reported in our financial statements is reported on an “as earned” basis rather than an annualized
basis and also includes renewals and persistency of in-force policies written in prior years as well as current new sales.
Sales, persistency of the existing block of business, employment and salary growth, and the effectiveness of a renewal program are
indicators of growth in premium income. Trends in new sales, as well as existing market share, also indicate the potential for growth in our
respective markets and the level of market acceptance of price changes and new product offerings. Sales results may fluctuate significantly
due to case size and timing of sales submissions.
See “Segment Results” as follows for a discussion of sales by segment.
Segment Results
Our reporting segments are comprised of the following: Unum US, Unum UK, Colonial Life, Closed Block, and Corporate. Financial
information for each of our reporting segments is as follows.
Unum US Segment
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.