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Unum 2011 Annual Report6
Kevin McCarthy, chief operating
officer, and Rick McKenney, chief
financial officer, discuss how
Unum’s operational approach and
capital management help the
company navigate the uncertain
economy and prepare it for
the future.
HOW HAS UNUM CONTINUED TO
TURN IN SOLID FINANCIAL AND
OPERATIONAL RESULTS DESPITE
THE ECONOMIC DOWNTURN?
Kevin: It all starts with strong
execution of our business plan.
Our employees aren’t distracted by
the external environment and other
factors they can’t control – but instead
have a singular focus on meeting the
needs of our customers. You can see
the results of this philosophy in our
outstanding customer satisfaction
scores, market leadership positions
and industry reputation.
Rick: This focused approach is also
evident in our capital management
philosophy. At its foundation are two
areas. First we have a disciplined
approach to running our businesses
where data-driven decisions keep us
focused on our return on capital.
Additionally, we have maintained a
prudent investment strategy that steers
clear of risky investments and focuses
on supporting the products we write.
Although we’re not immune to the
environment of low interest rates and
high unemployment, our strategy has
served us well during this time as we
have established a track record of
delivering on our commitments and
seen upgrades from every major
rating agency.
HOW IMPORTANT A PART DOES
RISK MANAGEMENT PLAY IN
DECIDING UNUM’S DIRECTION
FOR THE FUTURE?
Rick: Risk management is inherent
in everything we do. It ranges from
the detailed decisions we make
underwriting our products to the
strategic decisions that shape our
business profile. We’ve made conscious
efforts to diversify our earnings sources
and product lines, while also exiting
markets that don’t meet our risk
profile. These actions are part of an
enterprise-wide risk management
framework that involves employees
at all levels, and the oversight of our
Board of Directors, in managing risk
for our company.
Kevin McCarthy
Rick McKenney
QQ
AA
Strength and Flexibility to Target Solutions