Unum 2006 Annual Report Download - page 144
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
Unum Group and Subsidiaries
126
Note 6 - Acquisitions and Dispositions
Acquisitions
During 2005 and 2004 GENEX acquired Independent Review Services, Inc., a provider of medical diagnostic
networks and independent medical examinations, at a price of $3.5 million and Integrated Benefits Management, a
provider of case management services, at a price of $0.7 million, respectively. These companies will be included
with the disposition of GENEX.
During 2004, we became responsible for the ongoing administration and management of the United Kingdom
portion of the group income protection claims portfolio of Swiss Life (UK) plc (Swiss Life), and Swiss Life
reinsured this portfolio to us. We also became a multi-national pooling partner for Swiss Life Insurance & Pension
Company with respect to business written in the United Kingdom. The amount attributable to value of business
acquired in conjunction with this transaction was $15.4 million.
A reconciliation of value of business acquired is as follows:
2006 2005 2004
$ 78.5 $ 101.5 $ 463.5
Ac
q
uisition of Business - - 15.4
Interest Accrued 4.6 5.2 6.3
Amortization (12.6) (20.3) (22.1)
Im
p
airment - - (367.1)
Forei
g
n Currenc
y
7.7 (7.9) 5.5
$ 78.2 $ 78.5 $ 101.5 Balance at December 31
(in millions of dollars)
Balance at January 1
During 2004, we recognized an impairment of $367.1 million for the remaining balance of the individual income
protection – closed block value of business acquired. The impairment related to the restructuring of this business and
the resulting modification of our reporting segments. See Note 14 for further discussion.
The estimated net amortization of value of business acquired for each of the next five years is $8.2 million in each of
the years 2007 and 2008, $9.2 million in 2009, and $9.4 million in each of the years 2010 and 2011.
Dispositions
In January 2007, we entered into a definitive agreement for the sale of GENEX. See Note 2 for further discussion.
During 2005, we completed the sale of Unum UK’s Netherlands branch. The gain on the sale was $5.7 million
before tax and $4.0 million after tax.
During 2004, we completed the sale of our Canadian branch. See Note 2 for further discussion.