Unum 2006 Annual Report Download - page 76

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Segment Sales
Year Ended December 31, 2006 Compared with Year Ended December 31, 2005
Sales for Unum US increased slightly compared to the prior year, but we are adhering to our strategy of disciplined
pricing and a balanced mix of business through diversification. We had a sales mix of approximately 52 percent
core market and 48 percent large case in our group products and sales growth in the supplemental and voluntary
product lines where we are targeting growth.
Group long-term income protection sales, on a fully insured basis, increased in 2006 compared to the prior year,
with an increase in the large case market driven by additional new sales to existing group policyholders. Group
long-term income protection case coverages in the core market grew relative to the prior year, but because of a
lower case size, core market sales, when measured in dollars of annualized premium income, declined relative to the
prior year. Group short-term income protection sales, on a fully insured basis, decreased in 2006 compared to the
prior year due to a decrease in the small and mid-employer core market segment partially offset by an increase in the
large case market segment.
Total group life sales decreased relative to the prior year. On a by market segment basis, core market segment sales
for group life increased in 2006 relative to the prior year, while sales in the large case market segment decreased in
2006 compared to 2005. Accidental death and dismemberment sales decreased in 2006 compared to the prior year.
Our focus for our 2007 renewal program is aimed primarily at improving the profitability of our large case group
business, and we expect sales and persistency for this market segment to decline during 2007.
We continue to focus on the multi-life individual income protection business, with approximately 90 percent of total
2006 sales for this line of business occurring in the multi-life market. Long-term care sales were generally in line
with our strategy for this product line, with growth in the group product and a decline in sales for individual long-
term care.
Voluntary workplace benefits sales increased in 2006 in comparison to the prior year as we continue to focus on the
voluntary product lines for future growth.
Year Ended December 31, 2005 Compared with Year Ended December 31, 2004
Sales for Unum US during 2005 were generally consistent with our expectations. We anticipated relatively weaker
sales for the first half of 2005 relative to the comparable period of 2004 for both group and individual income
protection products primarily as a result of the competitive pricing environment. We began to restore sales
momentum during the latter half of the year, particularly in the small and mid-employer core markets, while
maintaining our commitment to a disciplined pricing approach for new business.
Sales in 2005 for fully insured group long-term and short-term income protection and group life in the small and
mid-employer core markets increased approximately 11.6 percent in these three product lines, offset by a decline in
sales in the more competitive large case market.
Individual income protection – recently issued sales attributable to multi-life business were approximately 85
percent of this product line’s new sales in 2005 compared to 81 percent in 2004.
Voluntary workplace benefits sales increased in comparison to 2004 due to both growth in existing products along
with the introduction of new products.