Unum 2008 Annual Report Download - page 9

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benefits are one of the primary backstops against financial
catastrophe for these people. For many of them, the only
protection they receive is through the workplace.
The growing gap in financial security can place even further
pressure on government resources already facing funding and
budgetary pressures, which is why we at Unum are advocates
for continued cooperation between the public and private sectors
to address this critical problem. Employers can help create an
environment where working individuals can better understand
the need for benefits and provide a convenient and inexpensive
venue to offer them. Private industry can work with government
agencies to raise the visibility of these issues and identify the
steps that can be taken to address the growing financial security
problem in our markets. Governments can continue to offer
incentives for employers to provide affordable and easily accessible
coverage through the workplace and hopefully expand those
incentives to encourage individuals to take greater responsibility
for their individual and family welfare.
In 2008, we began, along with our industry trade groups and
other benefits providers, to raise awareness of our industry’s role
in the broader economy. This year, you’ll see and hear more from
us as we take an even more active role in enhancing awareness
of the issues, as well as the role our industry can play today and
in the future.
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In closing, in spite of our solid operating performance it’s hard to
feel good about things when our stock value has suffered. While
it is some consolation that our stock has performed better than
the market and our peers, we recognize that we must work even
harder in 2009 to create value for our stockholders. I’m convinced
that we are well-positioned to navigate these challenging times –
a confidence that is grounded in a strong foundation, including:
• Leadership positions in businesses that fulll a very
important need and that, in fact, may well play an
even more vital role in the future;
• Solid operating plans for each of our businesses, plans
that in the past have positioned us to produce solid
financial results;
• A strong and exible balance sheet, with a well-positioned
investment portfolio and excess capital that provides us
a cushion in these uncertain times; and
• A stable organization, one that has been tested before
and doesn’t lose focus on serving customers and building
value for our stockholders.
By no means should this suggest that we are complacent –
this environment is still too challenging for that. While we have
not yet seen any material impact on our operating results from
the economy or from aggressive competitive actions, we are not
immune to feeling the effects of both. Still, I feel confident that
we have the business plan, determination and resources to
successfully maneuver through this environment, and I want to
thank our management team and the 10,000 people in our
company who helped make this past year’s accomplishments
possible and who have positioned us well for the future.
I’d also like to especially recognize our chief financial officer
Bob Greving, who has announced his intention to retire later
this year, for his outstanding contribution to the company. Bob
has been an integral part of our senior leadership team for more
than a decade, and he has been instrumental in helping us
build the strong financial foundation we enjoy today. We thank
Bob for his many contributions and wish him a happy and
healthy retirement.
As I said, I’m confident that by continuing to execute on our
business plan, we can successfully meet the challenges that lie
ahead. We know it won’t be easy, but our vision is clear, our focus
is unwavering and our employees are committed to doing what it
takes to keep us on the right track.
On behalf of all of us at Unum, I want to thank you for your
continued support of our company.
Regards,
Thomas R. Watjen
President and Chief Executive Officer
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