Unum 2012 Annual Report Download - page 12

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10 UNUM 2012 ANNUAL REPORT
In many ways, we are in the business of trust. Our policyholders trust that we’ll provide
the financial protection they need when illness, injury or the death of a loved one occurs.
And our shareholders trust that we’ll deliver attractive returns on their investment.
That’s why we work so hard to maintain a solid financial foundation.
At the heart of our efforts is an unwavering commitment
to effective risk management. Here at Unum, we believe
that risk management is everyone’s responsibility. After all,
we’re in the business of managing risk for others and we
apply the same rigorous standards to our own operations.
Although we constantly refine our plans to meet changing
business needs and financial market realities, what doesn’t
change is our long-term perspective. We’ve been around
for 165 years, and we know that policyholders count on us
to be there for them 20, 30 and 40 years from now, so we
must manage our resources well.
Managing our resources starts with maintaining a strong
investment portfolio, balance sheet and capital position.
With more than $50 billion under active management,
our investment portfolio is designed to match the long-term
nature of our business, and has enabled us to continue
Strong Credit Quality — Defaults by Year
(in percent)
2007 2008 2009 2010 2011 2012
0.00 0.12
2.12
2.63
0.30 0.30 0.30
0.45 0.64
0.02 0.05 0.05
Unum
Industry Average