Unum 2012 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2012 Unum annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 168

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

UNUM 2012 ANNUAL REPORT 55
Year Ended December 31, 2011 Compared with Year Ended December 31, 2010
Premium income was higher in 2011 compared to 2010, although premium growth was pressured by pricing actions that resulted
from the competitive U.K. market. The 2011 growth in group life premium income was due primarily to an increase in the inforce block of
business from prior year sales. Persistency, although below the level of 2010, was strong. Net investment income was higher in 2011
compared to 2010 due primarily to an increase in the level of invested assets, an increase in bond calls, and higher returns from inflation
index-linked bonds.
The benefit ratio was higher in 2011 compared to 2010, driven primarily by unfavorable group long-term disability risk results due to
the impact of higher inflation on claim reserves associated with disability policies containing an inflation-linked benefit increase feature,
and a lower level of claim recoveries during 2011 compared to 2010, partially offset by improved claim incidence levels during 2011. Group
life risk results were favorable in 2011 compared to 2010 due primarily to improved mortality experience.
Commissions and the deferral and amortization of acquisition costs were generally consistent in 2011 compared to 2010. Other
expenses in 2011 were higher than 2010 due to elevated development and marketing expenditures related to Unum UK’s growth plans.
The other expense ratio for 2011 was favorably impacted by higher premium income relative to 2010.
Sales
Shown below are sales results in dollars and in pounds for the Unum UK segment.
Year Ended December 31
(in millions) 2012 % Change 2011 % Change 2010
Sales by Product
Group Long-term Disability $51.2 7.1% $ 47.8 (10.0)% $ 53.1
Group Life 38.0 (13.2) 43.8 (23.6) 57.3
Supplemental and Voluntary 4.9 (43.0) 8.6 (2.3) 8.8
Total Sales $94.1 (6.1) $100.2 (15.9) $119.2
Sales by Market Sector
Group Disability and Group Life
Core Market (< 500 lives) $38.7 3.2 $ 37.5 (27.3) $ 51.6
Large Case Market 50.5 (6.7) 54.1 (8.0) 58.8
Subtotal 89.2 (2.6) 91.6 (17.0) 110.4
Supplemental and Voluntary 4.9 (43.0) 8.6 (2.3) 8.8
Total Sales $94.1 (6.1) $100.2 (15.9) $119.2
Sales by Product
Group Long-term Disability £32.3 8.4% £ 29.8 (13.4)% £ 34.4
Group Life 24.1 (12.4) 27.5 (25.9) 37.1
Supplemental and Voluntary 3.1 (42.6) 5.4 (5.3) 5.7
Total Sales £59.5 (5.1) £ 62.7 (18.8) £ 77.2
Sales by Market Sector
Group Disability and Group Life
Core Market (< 500 lives) £24.4 4.3 £ 23.4 (30.1) £ 33.5
Large Case Market 32.0 (5.6) 33.9 (10.8) 38.0
Subtotal 56.4 (1.6) 57.3 (19.9) 71.5
Supplemental and Voluntary 3.1 (42.6) 5.4 (5.3) 5.7
Total Sales £59.5 (5.1) £ 62.7 (18.8) £ 77.2