Unum 2007 Annual Report Download - page 63

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Unum 2007 Annual Report 61
Sales
Year Ended December 31
(in millions of dollars) 2007 % Change 2006 % Change 2005
Accident, Sickness, and Disability $ 211.3 8.7% $ 194.4 10.0% $ 176.8
Life 66.7 0.2 66.6 9.9 60.6
Cancer and Critical Illness 56.9 5.2 54.1 10.4 49.0
Total Sales $ 334.9 6.3 $ 315.1 10.0 $ 286.4
Colonial Life’s sales in 2007 increased in comparison to the prior year primarily due to sales increases in the public sector market for
educators and in the commercial market segment for employee groups with less than 100 lives. Also contributing to the sales increase
was an increase in the number of new accounts over the prior year, offset partially by a decrease in the average new case size, which
resulted in lower annualized premium per case sold.
Colonial Life’s sales increased in 2006 compared to 2005 due to increases in both public sector and commercial market segments.
In addition, the 2005 hurricanes in the United States gulf coast region resulted in lower sales in the second half of 2005.
Segment Outlook
During 2008, we intend to focus on sales and distribution growth by accelerating recruiting and development, capitalizing on sales
opportunities where we have less market share, and assessing emerging distribution opportunities. We anticipate that high levels of
profitability in this segment will continue, but with margins decreasing modestly as the benefit ratio returns to more historic levels
of approximately 50 percent.
We will continue the investment in brand, product promotion, and marketing programs that we initiated during 2007. Our 2008
initiatives also include enhancement of our product development and enrollment capabilities. We intend to further enhance our continuous
improvement program and focus on training and leadership development of our sales organization. We believe that the changes we have
made and continue to make in our sales organization through recruiting, development, and training will continue to drive accelerated
growth through improved productivity.