Unum 2013 Annual Report Download - page 5

UNUM 2013 ANNUAL REPORT / 3
ALIGNING FOR THE FUTURE
As I mentioned earlier, one of the
greatest challenges for all financial
services companies is finding profitable
long-term growth opportunities. We
can always find revenue growth, but
it often comes with a price we’re not
prepared to pay: sacrificing our risk
and financial objectives. I’m extremely
pleased with the way we have balanced
our growth and profitability goals, and
I’m also encouraged that despite a
challenging first few months of the
year, our sales gained momentum,
our premium grew in the U.S., and
we added more than 20,000 new
employer customers in 2013.
But we’re driven by an even bigger
prize — expanding the market for the
essential financial protection products
and services we provide. Consider that:
• Nearly 70 percent of Americans
and 90 percent of British workers
lack adequate disability and financial
protection benefits, yet many of
those same individuals live paycheck-
to-paycheck and are unable to support
themselves and their families if the
unexpected occurs.
• Unfortunately, life-changing events
happen more frequently than we’d
like to expect — research shows that
one out of four 20-year-olds will be
out of work due to a disability over
the course of their working years.
• For many people, the only avenue
when they find themselves in this
situation is government assistance,
but most public programs aren’t
equipped to address this challenge
and won’t even allow an individual
to maintain a reasonable standard
of living.
For the vast majority of consumers,
the workplace is the best place to be
educated about these risks and get
access to affordable financial protection.
In fact, 90 percent of disability and more
than 60 percent of all life insurance
coverage is obtained in the workplace
and, despite the challenges faced by
businesses today, 70 percent of all
employers say they still want to take
an active role in helping protect their
employees’ well-being. Unfortunately,
if workers don’t obtain basic financial
protection through their employer, all
too often they won’t get it at all.
While I believe the need for basic
financial protection has never been
greater, our industry has historically
been unable to reach many of those
who need it most. We are convinced,
though, that this is the time for us to
seize the moment, and we are taking
steps to capitalize on this opportunity.
What history often does is present a pretty
clear road map for the future. Companies
come and go in our industry, at times
aggressively seeking to grow their business
while at other times withdrawing or
retrenching as other corporate priorities
overshadow this segment of their business —
or they’ve tried to grow too quickly without
the right resources or long-term strategy.
There should be no doubt about Unum’s
commitment to the business of providing
financial protection to individuals in the
workplace — we staked our claim to it
more than a century and a half ago and
have never wavered in our commitment
to being a leader in it. After all, it’s our
only business.
Admittedly, over those 165 years we’ve
made some mistakes, but we’ve learned
from them and have become a stronger
company as result. One that won’t make
the same mistakes twice and will strive
to maintain its leadership position in its
business. One that will continue to deliver
on its commitments, not by resting on its
laurels but by quietly reinventing itself to
“ There should be no doubt
about Unum’s commitment
to the business of providing
financial protection to individ-
uals — we staked our claim
to it more than a century and
a half ago and have never
wavered in our commitment
to being a leader in it.”
2009 2013
11.4%
12.3%
12.2%
11.9%
12.9%
CONSOLIDATED OPERATING
RETURN ON EQUITY
“ At Unum, we believe two attributes stand above all
others in driving the long-term success of our business:
remaining disciplined in all that we do and consistently
executing on our plans.”