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39
Unum 2015 Annual Report
Contingent Liabilities
On a quarterly basis, we review relevant information with respect to litigation and contingencies to be reflected in our consolidated
financial statements. An estimated loss is accrued when it is probable that a liability has been incurred and the amount of the loss can be
reasonably estimated. It is possible that our results of operations or cash flows in a particular period could be materially affected by an
ultimate unfavorable outcome of pending litigation or regulatory matters depending, in part, on our results of operations or cash flows for
the particular period. See Note 14 of the “Notes to Consolidated Financial Statements” contained herein.
Accounting Developments
For information on new accounting standards and the impact, if any, on our financial position or results of operations, see Note 1 of
the “Notes to Consolidated Financial Statements” contained herein.
Consolidated Operating Results
Year Ended December 31
(in millions of dollars) 2015 % Change 2014 % Change 2013
Revenue
Premium Income $ 8,082.4 3.7% $ 7,797.2 2.3% $ 7,624.7
Net Investment Income 2,481.2 (0.4) 2,492.2 (0.6) 2,506.9
Net Realized Investment Gain (Loss) (43.8) N.M. 16.1 136.8 6.8
Other Income 211.5 (3.4) 219.0 (4.9) 230.2
Total Revenue 10,731.3 2.0 10,524.5 1.5 10,368.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 6,782.8 (7.2) 7,310.8 10.8 6,595.7
Commissions 996.3 6.5 935.3 2.8 909.5
Interest and Debt Expense 152.8 (8.8) 167.5 12.1 149.4
Deferral of Acquisition Costs (569.7) 8.7 (524.0) 12.3 (466.8)
Amortization of Deferred Acquisition Costs 482.3 9.4 440.8 5.2 418.9
Compensation Expense 835.1 1.7 820.9 3.9 790.4
Other Expenses 813.4 (2.1) 831.2 10.6 751.5
Total Benefits and Expenses 9,493.0 (4.9) 9,982.5 9.1 9,148.6
Income Before Income Tax 1,238.3 128.5 542.0 (55.6) 1,220.0
Income Tax 371.2 165.3 139.9 (62.5) 373.0
Net Income $ 867.1 115.6 $ 402.1 (52.5) $ 847.0
N.M. = not a meaningful percentage