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Unum 2011 Annual Report 7
ARE CURRENT MARKET AND
ECONOMIC CONDITIONS IMPACTING
UNUM’S LONG-TERM
GROWTH PROSPECTS?
Kevin: While the economy is
undoubtedly impacting our ability
to grow revenue, one result of the
downturn is that, more than ever,
people are talking about the need
for a financial safety net. Our goal
is to create long-term relationships
with employers and become a true
partner in developing a compelling
benefits program for their employees,
while providing access to critical
financial protection products they
might otherwise not be able to
acquire on their own.
Rick: We’re fortunate to be in a
position where our business continues
to generate solid margins and excess
capital, which has served both the
company and its shareholders well.
Over the long term, we believe our
disciplined approach to the business
and our sustainable capital manage-
ment strategy will lead to growth in
any environment.
HOW IS UNUM PREPARING ITSELF
TO TAKE ADVANTAGE OF MARKET
OPPORTUNITIES WHEN THEY ARISE?
Kevin: The truth is there are many
more similarities between our three
businesses than there are differences.
With that idea as a foundation, we’re
in the process of eliminating redun-
dancies and building on capabilities
within each of our operations to create
a consistent and shared support structure
across the company. Not only will that
help us enhance the experience for
our customers, it frees up resources
in each business to develop new
solutions for the marketplace.
WHAT IS UNUM DOING TO
MAXIMIZE SHAREHOLDER VALUE,
ESPECIALLY IN A WEAK ECONOMY?
Rick: We continue to focus on profitable
growth which means a disciplined
approach to the business, prudent
management of resources and sound
investment choices. This has provided
us with consistent returns and capital
generation through a difficult economic
period. As a result, since 2008 we have
repurchased approximately $1.7 billion
of shares and increased our dividend
payout three different times. Through
these actions, we continue to deliver
very good returns for our shareholders
despite the difficult environment. We
also actively look for opportunities
to grow through market expansion
and acquisition.
WHAT ARE THE COMPANY’S
PRIORITIES GOING FORWARD?
Kevin: To begin with, we must
continue to operate our businesses
well, focusing on meeting the needs of
our customers and managing inherent
risks. Just as important, though, is our
role as advocates for financial protection.
In partnership with respected think
tanks in both the U.S. and U.K. last year,
we sponsored research that made a
compelling case for the economic value
of workplace benefits. Throughout 2012,
we’ll continue our efforts to educate
policymakers in both countries about
the critical role our products play in
financial security for working people,
in hopes that we can partner with the
public sector in developing a solution
to these economic issues.
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