Unum 2006 Annual Report Download - page 21

3
PART I
ITEM 1. BUSINESS
General
Unum Group, a Delaware general business corporation, and its insurance and non-insurance companies, which
collectively with Unum Group we refer to as the Company, operate in the United States, the United Kingdom, and,
to a limited extent, in certain other countries around the world. As part of our corporate branding initiative
announced in the first quarter of 2007, we changed our name from UnumProvident Corporation to Unum Group.
The principal operating subsidiaries in the United States are Unum Life Insurance Company of America (Unum
America), Provident Life and Accident Insurance Company (Provident), The Paul Revere Life Insurance Company
(Paul Revere Life), and Colonial Life & Accident Insurance Company (Colonial), and in the United Kingdom,
Unum Limited. We are the largest provider of group and individual income protection insurance products in the
United States and the United Kingdom. We also provide a complementary portfolio of other insurance products,
including long-term care insurance, life insurance, employer- and employee-paid group benefits, and other related
services.
We have three major business segments: Unum US, Unum UK, and Colonial. Our other segments are the Individual
Income Protection – Closed Block segment, the Other segment, and the Corporate segment. Unum US and Unum
UK were previously referred to as U.S. Brokerage and Unum Limited. The names were changed in conjunction with
our corporate branding initiative. These segments are discussed more fully under “Reporting Segments” included
herein in Item 1.
Business Strategies
As one of the leading providers of employee benefits, we offer a comprehensive portfolio of income protection
products and services to meet the diverse needs of the marketplace. We try to achieve a competitive advantage by
offering group, individual, and voluntary workplace products that can be offered as stand alone products or that can
be combined with other coverages to provide integrated and individualized product solutions for customers. We
offer businesses of all sizes competitive benefit plans to protect the incomes and lifestyles of employees and their
families. Through a variety of technological tools and trained professionals, we offer services, including
comprehensive claims management services, which are designed to meet the evolving needs of our customers. We
strive to be responsive and timely, and we are committed to service excellence.
We believe that we are a well positioned and competitive force in our sector. However, due to the nature of our
business, we are sensitive to economic and financial market movements, including consumer confidence,
employment levels, and the level of interest rates.
In order to maintain our competitive business position, during the last few years our strategy has been:
• Operating improvement, particularly in our Unum US group income protection line of business;
• Capital management and financial strength;
• Improvement of the perception of our Company with regulators and the media;
• Continued reduction in our business volatility;
• Improvement of our risk profile through the development of a more balanced business mix, the reduction of
our below-investment grade fixed maturity securities holdings, and the maintenance of adequate claim
reserve discount rates and investment portfolio yield rates;
• Positioning service as a differentiator;
• Strengthening our corporate governance; and
• Responding to the changing regulatory and compliance environment.