Unum 2014 Annual Report Download - page 6

4 UNUM • 2014 ANNUAL REPORT
steps to address the root causes of this longstanding industry
challenge, with much of the focus being on simplifying our products
and services, and creating an even better customer experience – not
just by “insurance industry standards,” but across all industries.
While in 2014 we enjoyed some of the strongest growth rates we’ve
seen in many years, we believe that there are even greater opportunities
ahead. The quality of our offering, the strength of our relationships in the
market, and the potential to grow our markets are exciting opportunities
within our grasp. But rest assured, unlike some in our industry, we will
not grow our business at the expense of future profitability. Instead,
we are committed to maintaining the disciplined approach to growth
that has so successfully guided us over my 12 years as CEO.
2015 OUTLOOK
Hoping for higher interest rates or a more robust economic environment
in 2015 is one way to plan for the future, but it’s not how we’ve gone
about doing it. We don’t believe that we will get any material help from
the environment this year, and therefore we are taking the steps needed
to operate in a setting not dissimilar from the one we are in today.
In 2015, our focus will remain on profitably growing our business,
maintaining strong margins through disciplined pricing, underwriting
and expense management, and effectively managing our capital – just
as it has been in the past. Even in this persistently low interest rate
environment, we expect to maintain solid operating margins and
significant financial flexibility to support the needs of our businesses,
while also continuing to return capital to our shareholders.
I am very confident that we will be able to achieve these objectives
because we have solid plans in place and a track record of delivering
on our commitments to our customers, to our shareholders and to all
of our stakeholders.
I mentioned earlier that for many years we have been committed to a
rigorous leadership development and succession planning process at all
levels of the organization. While we emphasize internal advancement,
we also leverage Unum’s track record and reputation to attract outside
talent for particular expertise, and to help assure that we bring fresh
perspectives and insights to our company. Looking back over the past
five or so years, this commitment has paid dividends as we have
seamlessly transitioned the responsibilities of a number of retiring
executives without impacting our performance. We are fortunate to
have such a deep and talented group of leaders ready to take on new
roles in the future.
Which brings me to my decision to retire as CEO at this year’s Annual
Meeting. I’m as healthy and energized as ever, but it’s simply time to
step away from active management. I wouldn’t do so if I didn’t believe
we were well-positioned for the future, and I step back knowing that
Unum is in very good hands and poised for even greater things ahead.
Rick McKenney, who will be succeeding me as CEO, has made significant
contributions to this company since joining as chief financial officer in
2009, and the board and I have tremendous confidence Unum will
continue to thrive under his leadership. With the work we have done
these past five years to put in place the leadership team of the future,
Rick will be flanked by a deeply talented, well-established executive
leadership team.
As I make my transition, I want to thank you for your support over
these past 12 years as CEO of this great company. We’ve enjoyed a
number of successes over that time, as well as a few challenges along
the way that tested the resolve of our organization and each of us as
individuals. We not only met each challenge but emerged a stronger,
more vibrant company. While I will miss being CEO, I am looking forward
to my new role as non-executive chairman of the board for the next
two years – and to lending my support wherever I can.
In closing, I’d like to thank our employees, who never fail to amaze me
with their commitment to our customers, and with their enthusiasm
for developing better and more efficient ways to do their jobs and
move our company forward. They are well aware of the larger purpose
of our business – to provide our customers with peace-of-mind and,
when necessary, the financial support to help them navigate through
challenging, sometimes tragic experiences. We owe our success and
the optimism we have for the future to them.
I’d like to also thank our board of directors and my management team
for the strong leadership they’ve provided, including never shying
away from making tough decisions. They’ve also had the courage to
stick with the principles that have been so important to our past
success and will most certainly guide us over the long term.
It has been a privilege to lead this great company for the last 12 years.
Unum is today well-positioned strategically and financially to capitalize
on the opportunities that lie ahead, and we believe the steps we’ve
taken to ensure management continuity and an orderly leadership
transition will enable the company to continue to generate outstanding
results well into the future.
On behalf of all of us at Unum, thank you for your continued support.
Thomas R. Watjen
Chief Executive Officer