Unum 2014 Annual Report Download - page 49
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UNUM • 2014 ANNUAL REPORT 47
Year Ended December 31, 2014 Compared with Year Ended December 31, 2013
Premium income increased in 2014 compared to 2013 primarily due to continued growth in the block of business resulting from
sales and favorable persistency. Net investment income was lower in 2014 relative to the prior year due to a decrease in the yield on
invested assets and lower miscellaneous income, partially offset by an increase in the level of invested assets.
Risk results were unfavorable in 2014 compared to the prior year due to the net favorable impact of the 2013 reserve adjustments
for group life waiver of premium benefits and unclaimed death benefits. Excluding these two reserve adjustments, risk results were slightly
favorable in 2014 compared to 2013 due to lower claim incidence rates, partially offset by a higher average claim size.
The deferral of acquisition costs was higher in 2014 relative to the prior year due to sales growth. The amortization of acquisition costs
increased in 2014 compared to 2013 due to growth in the level of the deferred asset. The other expense ratio in 2014 was consistent with
the prior year as the increase in premium income more than offset expense increases driven by technology and other growth-related
investments, a higher level of allocated retirement-related costs, and higher acquisition-related expenses resulting from the increased level
of sales.
Year Ended December 31, 2013 Compared with Year Ended December 31, 2012
Premium income increased in 2013 compared to 2012 primarily due to growth in the block of business which resulted from sales
and premium rate increases, partially offset by a decline in persistency. Net investment income was lower in 2013 compared to 2012
primarily due to a decrease in the yield on invested assets, partially offset by an increase in the level of invested assets.
Risk results were favorable in 2013 compared to 2012 as a result of the 2013 reserve reduction for group life waiver of premium
benefits, partially offset by the reserve increase for unclaimed death benefits. Excluding these two reserve adjustments, risk results were
favorable in 2013 compared to 2012 due primarily to more favorable experience related to the group life waiver of premium benefits.
The deferral and amortization of acquisition costs were both higher in 2013 relative to the prior year due to an increase in deferrable
expenses and the resulting continued growth in the level of the deferred asset. The other expense ratio in 2013 was consistent with 2012.