Unum 2014 Annual Report Download - page 11

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UNUM • 2014 ANNUAL REPORT 9
A Focused
Investment Strategy
For nearly a decade, we have leaned into headwinds from
a stagnant economy and low interest rates. Through it all,
our discipline has enabled us to diversify and deliver solid
results to shareholders without wavering on our commitment
to excellent service and support for our customers.
The focused approach is evident in our investment philosophy.
We not only have a disciplined approach to running our
businesses, but also, we have maintained a prudent
investment strategy that steers clear of risky investments
and focuses on supporting our broad portfolio of products.
With more than $50 billion under active management, our
investment portfolio is designed to match the long-term
nature of our business. The high quality of our investments
means we have a significantly lower default experience than
the market average, and low exposure to problem areas.
Although today’s stubbornly low interest rates continue to
put pressure on our investment income, we are able to
offset this impact by adjusting the pricing of many of our
products to accommodate changing economic environments
and their impact on our profitability.
Through it all, we have a responsibility to make investment
decisions that are in the best interest of our shareholders and
customers. That means looking for sensible opportunities
that provide attractive returns over the long term. It’s a
simple but powerful guiding principle.
“Although we constantly refine our plans
to meet changing business needs and
financial market realities, what doesn’t
change is our long-term perspective.”
Breege Farrell
Executive Vice President and
Chief Investment Officer