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UNUM 2013 ANNUAL REPORT / 57
Colonial Life Segment
The Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical
illness products issued primarily by Colonial Life & Accident Insurance Company and marketed to employees at the workplace through
an independent contractor agency sales force and brokers.
Operating Results
Shown below are financial results and key performance indicators for the Colonial Life segment.
Year Ended December 31
(in millions of dollars, except ratios) 2013 % Change 2012 % Change 2011
Operating Revenue
Premium Income
Accident, Sickness, and Disability $ 738.7 2.0% $ 724.5 4.2% $ 695.3
Life 221.1 5.4 209.7 10.0 190.7
Cancer and Critical Illness 272.4 4.6 260.3 4.4 249.3
Total Premium Income 1,232.2 3.2 1,194.5 5.2 1,135.3
Net Investment Income 145.4 4.9 138.6 4.7 132.4
Other Income 0.2 (33.3) 0.3 (40.0) 0.5
Total 1,377.8 3.3 1,333.4 5.1 1,268.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 667.0 6.3 627.3 6.4 589.4
Commissions 252.5 (0.8) 254.5 3.5 245.9
Deferral of Acquisition Costs (205.0) (0.6) (206.3) 1.6 (203.1)
Amortization of Deferred Acquisition Costs 174.2 4.6 166.5 10.1 151.2
Other Expenses 224.3 3.3 217.1 1.1 214.7
Total 1,113.0 5.1 1,059.1 6.1 998.1
Income Before Income Tax and Net Realized
Investment Gains and Losses 264.8 (3.5) 274.3 1.6 270.1
Unclaimed Death Benefits (UDB) Reserve Increase 20.1 — — — —
Operating Income $ 284.9 3.9 $ 274.3 1.6 $ 270.1
Operating Ratios (% of Premium Income):
Benefit Ratio 54.1% 52.5% 51.9%
Benefit Ratio Excluding the UDB Reserve Increase 52.5%
Other Expense Ratio 18.2% 18.2% 18.9%
Income Ratio 21.5% 23.0% 23.8%
Operating Income Ratio 23.1% 23.0% 23.8%
Persistency:
Accident, Sickness, and Disability 75.2% 75.7% 73.8%
Life 85.2% 85.7% 85.0%
Cancer and Critical Illness 83.1% 84.5% 84.0%