Unum 2014 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2014 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 172

  • 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
  • 169
  • 170
  • 171
  • 172

48 UNUM • 2014 ANNUAL REPORT
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Unum US Supplemental and Voluntary Operating Results
Shown below are financial results and key performance indicators for Unum US supplemental and voluntary product lines.
Year Ended December 31
(in millions of dollars, except ratios) 2014 % Change 2013 % Change 2012
Operating Revenue
Premium Income
Individual Disability $ 466.1 0.2% $ 465.3 (2.6)% $ 477.6
Voluntary Benefits 693.8 7.9 642.8 2.7 626.0
Total Premium Income 1,159.9 4.7 1,108.1 0.4 1,103.6
Net Investment Income 232.0 (2.1) 236.9 3.7 228.5
Other Income 29.7 (3.9) 30.9 6.6 29.0
Total 1,421.6 3.3 1,375.9 1.1 1,361.1
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 565.9 (2.4) 579.6 3.4 560.6
Commissions 254.2 9.4 232.3 (4.6) 243.6
Deferral of Acquisition Costs (221.2) 11.9 (197.7) (1.4) (200.5)
Amortization of Deferred Acquisition Costs 200.4 3.7 193.3 17.4 164.6
Other Expenses 288.4 6.7 270.2 4.0 259.7
Total 1,087.7 0.9 1,077.7 4.8 1,028.0
Income Before Income Tax and Net Realized
Investment Gains and Losses 333.9 12.0 298.2 (10.5) 333.1
Unclaimed Death Benefits (UDB) Reserve Increase — — 26.3 — —
Operating Income $ 333.9 2.9 $ 324.5 (2.6) $ 333.1
Interest Adjusted Loss Ratio:
Individual Disability 30.0% 29.6% 31.2%
Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability 51.6% 51.3% 52.4%
Voluntary Benefits 46.9% 53.0% 49.5%
Benefit Ratio Excluding the UDB Reserve Increase
Voluntary Benefits 48.9%
Other Expense Ratio 24.9% 24.4% 23.5%
Income Ratio 28.8% 26.9% 30.2%
Operating Income Ratio 28.8% 29.3% 30.2%
Persistency:
Individual Disability 90.0% 90.5% 91.4%
Voluntary Benefits 77.6% 77.0% 78.9%