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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
46 / UNUM 2013 ANNUAL REPORT
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) 2013 % Change 2012 % Change 2011
Operating Revenue
Premium Income
Group Life $1,213.9 2.7% $1,182.1 6.8% $1,106.7
Accidental Death & Dismemberment 121.6 5.5 115.3 5.6 109.2
Total Premium Income 1,335.5 2.9 1,297.4 6.7 1,215.9
Net Investment Income 142.6 (2.9) 146.9 8.4 135.5
Other Income 1.8 (5.3) 1.9 (13.6) 2.2
Total 1,479.9 2.3 1,446.2 6.8 1,353.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 909.9 (2.8) 936.4 9.6 854.6
Commissions 108.9 4.1 104.6 9.5 95.5
Deferral of Acquisition Costs (24.7) 10.3 (22.4) 21.1 (18.5)
Amortization of Deferred Acquisition Costs 15.6 14.7 13.6 (4.2) 14.2
Other Expenses 198.2 2.6 193.1 (3.1) 199.3
Total 1,207.9 (1.4) 1,225.3 7.0 1,145.1
Income Before Income Tax and Net Realized
Investment Gains and Losses 272.0 23.1 220.9 5.9 208.5
Unclaimed Death Benefits (UDB) Reserve Increase 49.1 — — — —
Group Life Waiver of Premium Benefit (Waiver)
Reserve Reduction (85.0) — — — —
Operating Income $ 236.1 6.9 $ 220.9 5.9 $ 208.5
Operating Ratios (% of Premium Income):
Benefit Ratio 68.1% 72.2% 70.3%
Benefit Ratio Excluding the UDB and
Waiver Reserve Adjustments 70.8%
Other Expense Ratio 14.8% 14.9% 16.4%
Income Ratio 20.4% 17.0% 17.1%
Operating Income Ratio 17.7% 17.0% 17.1%
Persistency:
Group Life 88.1% 90.6% 88.0%
Accidental Death & Dismemberment 88.8% 90.0% 88.2%