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50 UNUM • 2014 ANNUAL REPORT
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Sales
Year Ended December 31
(in millions of dollars) 2014 % Change 2013 % Change 2012
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability $223.6 29.0% $173.3 (4.9)% $182.2
Group Short-term Disability 118.8 16.6 101.9 4.6 97.4
Group Life and AD&D 264.8 32.8 199.4 (3.9) 207.5
Subtotal 607.2 27.9 474.6 (2.6) 487.1
Supplemental and Voluntary
Individual Disability 56.8 8.8 52.2 (8.4) 57.0
Voluntary Benefits 238.1 8.8 218.8 1.1 216.4
Subtotal 294.9 8.8 271.0 (0.9) 273.4
Total Sales $902.1 21.0 $745.6 (2.0) $760.5
Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 lives) $401.7 23.8% $324.4 (3.1)% $334.9
Large Case Market 205.5 36.8 150.2 (1.3) 152.2
Subtotal 607.2 27.9 474.6 (2.6) 487.1
Supplemental and Voluntary 294.9 8.8 271.0 (0.9) 273.4
Total Sales $902.1 21.0 $745.6 (2.0) $760.5
Year Ended December 31, 2014 Compared with Year Ended December 31, 2013
Sales of our group products increased in 2014 relative to 2013 in both the core and large case market segments for new and existing
customer accounts. The sales mix in the group market sector for 2014 was approximately 66 percent core market and 34 percent large case
market, generally consistent with the level of 2013.
Sales in our individual disability line of business, which are primarily concentrated in the multi-life market, increased in 2014 due
to a favorable mix of sales in the core and large case market segments. Sales of voluntary benefits were higher in 2014 compared to 2013,
with increases in both core and large case market sales.
We attribute a portion of our 2014 sales growth relative to 2013 to the distraction which occurred in the marketplace during 2013
as a result of healthcare reform implementation, which we believe negatively impacted our core market sales for our group and voluntary
benefits products throughout 2013.
Year Ended December 31, 2013 Compared with Year Ended December 31, 2012
Sales in our group core and large case market segments declined in 2013 relative to 2012. In both markets, sales to existing accounts
increased in 2013 but this increase was more than offset by a decrease in new account sales. The decline in new sales in our group core
market was driven by fewer sales opportunities in the small-size employer market segment during 2013, which we believe may have been
temporarily attributable to healthcare reform as well as the uncertain economic and political environment. We believe the decline in new
sales in our large case market was partially due to our disciplined and opportunistic approach to sales growth. The sales mix in our group
market sector in 2013 was approximately 68 percent core market and 32 percent large case market, generally consistent with the prior year.
Sales in our individual disability line of business were lower in 2013 compared to 2012 due to lower sales growth from existing
customers. Sales of voluntary benefits were higher in 2013 compared to 2012, with an increase in core market sales partially offset by
a decrease in large case market sales.