Unum 2010 Annual Report Download - page 44

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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
Unum
2010
42
Year Ended December 31, 2010 Compared with Year Ended December 31, 2009
Unum US sales continued to be negatively impacted by the current economic conditions and the competitive environment, as sales
declined 5.7 percent in 2010 relative to 2009. Sales in our group core market segment, which we define for Unum US as employee groups
with fewer than 2,000 lives, decreased 8.3 percent in 2010 compared to 2009, with lower group long-term and short-term disability sales
and lower group life and accidental death and dismemberment sales. The number of new accounts added in our group core market
segment during 2010 was 3.0 percent lower than the number of new accounts added during 2009. Sales in the group large case market
segment decreased 19.8 percent in 2010 compared to 2009, due in part to one large case sold in the second quarter of 2009. Our 2010
sales mix was approximately 71 percent core market and 29 percent large case market, in line with our targeted market distribution mix.
Sales of voluntary benefits increased 15.6 percent in 2010 relative to 2009, and the number of new accounts increased 13.3 percent.
Sales in our individual disability line of business, which are primarily concentrated in the multi-life market, decreased 17.2 percent in 2010
compared to 2009. Sales of group long-term care increased 15.2 percent in 2010 compared to 2009.
We continue to believe that the group core market and voluntary benefits market, which combined together are approximately
70 percent of our Unum US sales, represent significant growth opportunities. We will also seek disciplined and opportunistic growth,
generally at the market growth rate, in the group large case, group long-term care, and individual disability markets. While in the short-
term we expect economic trends to continue to pressure sales growth, we believe we are well-positioned for economic recovery.
Year Ended December 31, 2009 Compared with Year Ended December 31, 2008
Total sales for Unum US increased 1.2 percent in 2009 compared to 2008. Sales in our group core market segment increased 7.9 percent
over 2008, with higher group short-term disability and group life core market sales partially offset by a decline in group long-term disability
core market sales. The number of new accounts in our core market segment increased 6.5 percent in 2009 relative to 2008. Sales in the
group large case market segment increased 1.2 percent compared to 2008. Our sales mix was approximately 68 percent core market and
32 percent large case market.
Sales of voluntary benefits increased by 2.1 percent, and the number of new accounts increased by 19.5 percent compared to 2008.
Sales in our individual disability line of business decreased 10.9 percent compared to 2008, and sales of group long-term care decreased
30.4 percent. We discontinued selling individual long-term care during 2009.