Unum 2007 Annual Report Download - page 48

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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
46 Unum 2007 Annual Report
Unum US Segment
The Unum US segment includes group long-term and short-term disability 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 disability insurance, group and individual long-term care insurance, and voluntary benefits products.
Unum US Operating Results
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.
Year Ended December 31
(in millions of dollars) 2007 % Change 2006 % Change 2005
Operating Revenue
Premium Income $ 5,014.0 (3.5)% $ 5,196.0 (0.6)% $ 5,229.0
Net Investment Income 1,129.9 6.3 1,063.1 6.5 998.2
Other Income 135.7 25.1 108.5 (0.1) 108.6
Total 6,279.6 (1.4) 6,367.6 0.5 6,335.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 4,246.4 (10.6) 4,752.1 7.5 4,419.3
Commissions 501.5 (0.7) 505.2 0.7 501.6
Deferral of Acquisition Costs (304.2) (0.7) (306.2) (1.8) (311.9)
Amortization of Deferred Acquisition Costs 277.1 (8.3) 302.2 (1.5) 306.9
Other Expenses 993.2 (2.5) 1,018.6 (1.3) 1,032.2
Total 5,714.0 (8.9) 6,271.9 5.4 5,948.1
Operating Income Before Income Tax
and Net Realized Investment Gains and Losses $ 565.6 N.M. $ 95.7 (75.3) $ 387.7
N.M. = not a meaningful percentage
Included in the operating income reported above for Unum US are before-tax charges of $66.2 million, $364.2 million, and
$40.7 million in 2007, 2006, and 2005, respectively, related to the claim reassessment process.