Unum 2010 Annual Report Download - page 47

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Unum 2010 Annual Report
45
The other expense ratio increased in 2009 compared to 2008 due primarily to the decline in premium income and an increase in
policy maintenance expenses associated with the change in the mix of in-force policies from the large case market to the core market
segment. Included in 2008 other expenses was $4.4 million related to a 2008 broker compensation settlement agreement.
Unum US Group Life and Accidental Death and Dismemberment Operating Results
Shown below are financial results and key performance indicators for Unum US group life and accidental death and dismemberment.
Year Ended December 31
(in millions of dollars, except ratios) 2010 % Change 2009 % Change 2008
Operating Revenue
Premium Income
Group Life $1,090.3 3.1% $1,057.7 (0.5)% $1,062.8
Accidental Death & Dismemberment 106.1 1.1 104.9 (17.8) 127.6
Total Premium Income 1,196.4 2.9 1,162.6 (2.3) 1,190.4
Net Investment Income 129.6 2.5 126.5 0.4 126.0
Other Income 2.4 26.3 1.9 (17.4) 2.3
Total 1,328.4 2.9 1,291.0 (2.1) 1,318.7
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 839.9 3.0 815.5 (1.5) 827.6
Commissions 89.3 4.6 85.4 — 85.4
Deferral of Acquisition Costs (49.3) 2.5 (48.1) 19.4 (40.3)
Amortization of Deferred Acquisition Costs 43.3 (5.7) 45.9 (16.5) 55.0
Other Expenses 196.5 (0.6) 197.6 9.7 180.1
Total 1,119.7 2.1 1,096.3 (1.0) 1,107.8
Operating Income Before Income Tax and Net
Realized Investment Gains and Losses $ 208.7 7.2 $ 194.7 (7.7) $ 210.9
Operating Ratios (% of Premium Income):
Benefit Ratio 70.2% 70.1% 69.5%
Other Expense Ratio 16.4% 17.0% 15.1%
Before-tax Operating Income Ratio 17.4% 16.7% 17.7%
Premium Persistency:
Group Life 91.5% 86.9% 83.8%
Accidental Death & Dismemberment 90.7% 88.1% 86.4%
Case Persistency:
Group Life 88.3% 87.2% 89.1%
Accidental Death & Dismemberment 88.4% 87.2% 89.2%