Unum 2006 Annual Report Download - page 75

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A reconciliation of total operating revenue by segment to total consolidated revenue and total operating income
(loss) by segment to consolidated net income (loss) is as follows.
(in millions of dollars)
2004
Operating Revenue by Segment $ 10,533.1 $ 10,266.0 $ 10,258.6
Net Realized Investment Gain (Loss) 2.2 (6.7) 29.2
Revenue $ 10,535.3 $ 10,259.3 $ 10,287.8
Operating Income (Loss) by Segment $ 463.2 $ 700.6 $ (304.9)
Net Realized Investment Gain (Loss) 2.2 (6.7) 29.2
Income Tax (Benefit) 61.8 189.9 (74.3)
Income (Loss) from Discontinued Operations 7.4 9.6 (51.6)
Net Income (Loss) $ 411.0 $ 513.6 $ (253.0)
2006 2005
Year Ended December 31
As previously noted, included in before-tax “Operating Income (Loss) by Segment” shown above are before-tax
charges of $429.9 million related to our revised claim reassessment estimates and the broker compensation
settlements in 2006; $75.0 million related to the settlement of the market conduct examination with the California
DOI and related matters in 2005; $127.0 million related to the settlement of the multistate market conduct
examination in 2004; and $967.0 million related to the first quarter of 2004 restructuring of the individual income
protection – closed block of business.
Unum US Segment Operating Results
The Unum US segment includes group long-term and short-term income protection insurance, group life and
accidental death and dismemberment products, and supplemental and voluntary lines of business. The supplemental
and voluntary lines of business are comprised of recently issued individual income protection insurance, group and
individual long-term care insurance, and voluntary workplace benefits products. Shown below are financial results
for the Unum US segment. In the sections following, financial results and key ratios are also presented for the major
lines of business within the segment.
(in millions of dollars)
2006 % Change 2005 % Change 2004
Operating Revenue
Premium Income $ 5,196.0 (0.6) % $ 5,229.0 (3.6) % $ 5,421.6
Net Investment Income 1,063.1 6.5 998.2 3.4 965.8
Other Income 108.5 (0.1) 108.6 20.9 89.8
Total 6,367.6 0.5 6,335.8 (2.2) 6,477.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 4,752.1 7.5 4,419.3 (4.2) 4,614.4
Commissions 505.2 0.7 501.6 (6.8) 538.3
Deferral of Policy Acquisition Costs (306.2) (1.8) (311.9) (9.9) (346.0)
Amortization of Deferred Policy Acquisition Costs 302.2 (1.5) 306.9 7.2 286.3
Amortization of Value of Business Acquired 0.3 - 0.3 50.0 0.2
Operating Expenses 1,018.3 (1.3) 1,031.9 (1.6) 1,048.5
Total 6,271.9 5.4 5,948.1 (3.2) 6,141.7
Operating Income Before Income Tax and Net
Realized Investment Gains and Losses $ 95.7 (75.3) $ 387.7 15.6 $ 335.5
Year Ended December 31