Unum 2007 Annual Report Download - page 55

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Unum 2007 Annual Report 53
Unum US Supplemental and Voluntary Operating Results
Shown below are financial results and key performance indicators for Unum US supplemental and voluntary product lines.
Year Ended December 31
(in millions of dollars, except ratios) 2007 % Change 2006 % Change 2005
Operating Revenue
Premium Income
Individual Disability — Recently Issued $ 456.7 4.2% $ 438.5 3.2)% $ 425.1
Long-term Care 532.9 8.2 492.4 4.1 473.2
Voluntary Benefits 404.7 6.0 381.9 12.5 339.6
Total Premium Income 1,394.3 6.2 1,312.8 6.1 1,237.9
Net Investment Income 359.0 19.7 299.9 24.6 240.6
Other Income 33.1 26.3 26.2 (0.4) 26.3
Total 1,786.4 9.0 1,638.9 8.9 1,504.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,067.4 8.7 982.3 8.0 909.7
Commissions 245.1 2.4 239.3 4.6 228.7
Deferral of Acquisition Costs (207.7) 1.8 (204.0) (0.3) (204.6)
Amortization of Deferred Acquisition Costs 171.5 13.7 150.8 6.4 141.7
Other Expenses 266.7 6.0 251.7 (3.7) 261.4
Total 1,543.0 8.7 1,420.1 6.2 1,336.9
Operating Income Before Income Tax
and Net Realized Investment Gains and Losses $ 243.4 11.2 $ 218.8 30.3 $ 167.9
Operating Ratios (% of Premium Income):
Benefit Ratios
Individual Disability — Recently Issued (1) 56.7% 58.0% 57.5%
Long-term Care 106.0% 99.2% 93.0%
Voluntary Benefits 60.1% 62.7% 66.3%
Other Expense Ratio (2)
19.1% 19.2% 21.1%
Before-tax Operating Income Ratio (3) 17.5% 16.7% 13.6%
Interest Adjusted Loss Ratios:
Individual Disability — Recently Issued 40.8% 43.5% 44.4%
Long-term Care 77.7% 73.1% 70.9%
Premium Persistency:
Individual Disability — Recently Issued 90.6% 90.5% 89.6%
Long-term Care 95.4% 95.3% 95.8%
Voluntary Benefits 79.4% 80.9% 81.1%
(1) Included in these ratios is a charge of $2.3 million in 2005 related to the claim reassessment process. Excluding this charge, the benefit ratio for 2005 would have been 57.0%.
(2) Included in these ratios is a charge of $1.0 million in 2005 related to the claim reassessment process. Excluding this charge, the operating expense ratio for 2005 would
have been 21.0%.
(3) Included in these ratios is a charge of $3.3 million in 2005 related to the claim reassessment process. Excluding this charge, the before-tax operating income ratio for 2005
would have been 13.8%.