Unum 2008 Annual Report Download - page 54
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50
Year Ended December 31, 2008 Compared with Year Ended December 31, 2007
Unum US sales increased 11.0 percent in 2008 compared to 2007. Our group core market segment, which we define for Unum US as
employee groups with less than 2,000 lives, had a sales increase of 23.7 percent over the prior year, and the number of new accounts increased
16.4 percent. We had a sales mix of approximately 67 percent core market and 33 percent large case market in 2008, in line with our targeted
60 percent core/40 percent large case market distribution mix. Our supplemental and voluntary sales increased 6.8 percent in 2008 compared
to last year, with a 14.6 percent increase in voluntary sales offsetting the expected decrease in sales of individual long-term care.
Sales in the group large case market segment declined 1.8 percent compared to the prior year. Sales for our individual disability line of
business, of which approximately 91.0 percent are in the multi-life market, decreased slightly during 2008 compared to 2007.
During 2009 we will continue to focus on our group core market segment, group long-term care, and voluntary products market,
as well as disciplined growth in our group large case and individual disability markets. In order to focus more completely on the group
long-term care market, we have decided to discontinue selling individual long-term care insurance on an active basis effective in 2009.
Year Ended December 31, 2007 Compared with Year Ended December 31, 2006
While overall sales for Unum US declined in 2007 relative to 2006, we maintained our disciplined pricing and our sales mix was
generally in line with our target mix. In 2007, we had a sales mix of approximately 62 percent core market and 38 percent large case
market. Although sales on an annualized premium basis declined year over year in our group core market segment, the number of new
accounts in this segment increased over 2006.
Sales for our individual disability line of business increased over 2006. 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. Our voluntary benefits sales
increased in 2007 relative to 2006, consistent with our focus on sales growth in our voluntary product lines.
Because our focus for our 2007 renewal program was aimed primarily at improving the profitability of our large case group business,
sales and persistency for the large case market segment declined during 2007, as expected.