Unum 2014 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2014 Unum annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

60 UNUM • 2014 ANNUAL REPORT
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Operating Results
Shown below are financial results and key performance indicators for the Closed Block segment.
Year Ended December 31
(in millions of dollars, except ratios) 2014 % Change 2013 % Change 2012
Operating Revenue
Premium Income
Individual Disability $ 624.8 (9.1)% $ 687.5 (6.6)% $ 736.4
Long-term Care 630.9 — 630.6 (0.2) 631.9
All Other 0.9 28.6 0.7 (68.2) 2.2
Total Premium Income 1,256.6 (4.7) 1,318.8 (3.8) 1,370.5
Net Investment Income 1,284.1 0.9 1,272.3 3.4 1,230.5
Other Income 91.8 (2.2) 93.9 (6.2) 100.1
Total 2,632.5 (2.0) 2,685.0 (0.6) 2,701.1
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 2,931.1 27.8 2,293.0 (0.9) 2,314.9
Commissions 101.5 (10.8) 113.8 1.1 112.6
Interest and Debt Expense 7.3 (13.1) 8.4 (19.2) 10.4
Other Expenses 168.2 4.9 160.4 (4.4) 167.7
Total 3,208.1 24.6 2,575.6 (1.2) 2,605.6
Income (Loss) Before Income Tax and Net Realized
Investment Gains and Losses (575.6) (626.1) 109.4 14.6 95.5
Long-term Care Reserve Increase 698.2 — — — —
Operating Income $ 122.6 12.1 $ 109.4 14.6 $ 95.5
Interest Adjusted Loss Ratios:
Individual Disability 83.6% 82.6% 83.0%
Long-term Care 196.6% 89.6% 90.1%
Long-term Care Excluding the Reserve Increase 85.9%
Operating Ratios (% of Premium Income):
Other Expense Ratio 13.4% 12.2% 12.2%
Income (Loss) Ratio (45.8)% 8.3% 7.0%
Operating Income Ratio 9.8% 8.3% 7.0%
Persistency:
Individual Disability 91.3% 91.8% 92.5%
Long-term Care 95.4% 95.5% 95.8%