Unum 2006 Annual Report Download - page 7

5
The new Unum. While our
company has changed in
many ways, one thing that
has remained constant is the
leading positions we have
in our key businesses.
Unum US remains the leading group
and individual income protection provider,
as well as one of the leaders in group
life, group long-term care and voluntary
benefi ts. Unum UK continues to be
the clear leader in an under-penetrated
income protection market, and Colonial has
maintained its position as the number two
provider of voluntary benefi ts in the U.S.
One of our goals for 2007 is to further
capitalize on this market leadership
by leveraging our strong brands more
effectively. The fi rst step in this process
was to simplify the name of the company.
After an extensive brand review, we chose
earlier this year to shorten our name to
Unum — a name that refl ects the direction
we have set for the company and lever-
ages the tremendous brand equity built up in
the marketplace. Simplicity is a theme you’ll
be hearing more about from us in the future.
Going forward, we intend to capitalize on our
market leadership in all of our businesses.
Whether in the United States or the United
Kingdom, the needs of our customers and
the environment in which we operate are
changing. The products and services we
provide are well suited for today’s complex
work environment.
LOOKING AHEAD
As it has been for the past three years,
our overarching goal for 2007 is to build
further momentum by focusing on our
strengths and serving our customers well.
Our four primary objectives are as follows:
our board of directors for the leadership
they have given this company during a
challenging three-year period. I want to
also extend my sincere appreciation to
Bill Pollard, who retired as chairman in late
2006, and to Hugh Maclellan, Jr., who after
32 years on our board has decided not to
stand for re-election and will retire when
his term expires this year. These two indi-
viduals have worked tirelessly on behalf
of our stockholders for many years,
and their contributions will be missed.
We have added seven new directors,
though, to the board since 2004, and
I am confi dent that with their support
and leadership we will continue to create
value for all of our stakeholders.
While there are undoubtedly challenges
that will arise, I am optimistic about our
future. Our business and fi nancial platform
is the strongest it’s been in years, and we
have generated momentum in a number
of key areas — 2007 is a year to build from
these successes.
Consistent, precise execution of our plan is
critical, but I believe all of our employees
know what needs to be done and are up
to the task.
On behalf of our board of directors and
the entire Unum team, thank you for your
support of our company.
Sincerely,
Thomas R. Watjen
President and Chief Executive Offi cer
° Continue to improve the profi tability of
our Unum US group income protection
line of business, the one line of business
not presently meeting our profi tability
targets. We are very encouraged by the
favorable trends in this line of business.
I am confi dent that the management
and operational changes we made last
year will lead to continued improvement
in 2007, moving us closer to our longer
term goals for this product line. This remains
our number one priority.
° Ensure that all of our other product lines
and businesses that are performing well
continue to do so. While we are proud of
the progress we’ve made over the last
few years, we recognize that achieving
our long-term goals and delivering value
to stockholders requires that we strive
for continuous improvement in every area
of the company — including those that
are already meeting expectations.
° Continue to execute our capital manage-
ment strategy. For the fi rst time in several
years, we are now generating excess
capital, and later this year we will be
assessing how to best put this capital to
use to create value for our stockholders.
We will also continue to explore the
options, such as securitization, available
to generate capital from our individual
income protection closed block.
° Successful completion of the claims
reassessment process. While again the
costs have been higher than we originally
anticipated, we remain on track to
complete this process by the end of 2007.
Most importantly, I am very pleased with
the signifi cantly improved relationships
we are building with our regulators.
I want to thank all of our stakeholders for
their support this past year. I’d especially
like to thank our employees for all they
did to make 2006 a success, as well as