Unum 2015 Annual Report Download - page 48

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Management’s Discussion and Analysis
of Financial Condition and Results of Operations
46 Unum 2015 Annual Report
Unum US Group Life and Accidental Death and Dismemberment Operating Results
Shown below are financial results and key performance indicators for Unum US group life and accidental death and dismemberment.
Year Ended December 31
(in millions of dollars, except ratios) 2015 % Change 2014 % Change 2013
Operating Revenue
Premium Income
Group Life $1,347.4 6.7% $1,262.3 4.0% $1,213.9
Accidental Death & Dismemberment 131.7 4.6 125.9 3.5 121.6
Total Premium Income 1,479.1 6.5 1,388.2 3.9 1,335.5
Net Investment Income 135.1 (0.1) 135.2 (2.8) 139.1
Other Income 2.1 50.0 1.4 (22.2) 1.8
Total 1,616.3 6.0 1,524.8 3.3 1,476.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,061.6 8.8 975.8 7.2 909.9
Commissions 121.2 7.0 113.3 4.0 108.9
Deferral of Acquisition Costs (33.3) 6.4 (31.3) 26.7 (24.7)
Amortization of Deferred Acquisition Costs 26.2 22.4 21.4 37.2 15.6
Other Expenses 215.7 5.1 205.2 3.5 198.2
Total 1,391.4 8.3 1,284.4 6.3 1,207.9
Income Before Income Tax and Net Realized
Investment Gains and Losses 224.9 (6.4) 240.4 (10.5) 268.5
Unclaimed Death Benefits (UDB) Reserve Increase — — — — 49.1
Group Life Waiver of Premium Benefit (Waiver)
Reserve Reduction — — — — (85.0)
Operating Income $ 224.9 (6.4) $ 240.4 3.4 $ 232.6
Operating Ratios (% of Premium Income):
Benefit Ratio 71.8% 70.3% 68.1%
Benefit Ratio Excluding the UDB and
Waiver Reserve Adjustments 70.8%
Other Expense Ratio 14.6% 14.8% 14.8%
Income Ratio 15.2% 17.3% 20.1%
Operating Income Ratio 15.2% 17.3% 17.4%
Persistency:
Group Life 89.2% 90.8% 88.1%
Accidental Death & Dismemberment 89.8% 91.1% 88.8%