Unum 2015 Annual Report Download - page 5

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Unum 2015 Annual Report 3
Benefit payments throughout her illness helped cover medical and other
costs and eased some of the financial burden during a time when Jamie
was also caring for her newborn son.
Nora is now a thriving 7-year-old, and Jamie joined Colonial Life in 2014,
sharing her own story to help people understand the “why” behind what
we do. As both a customer and a member of our team, Jamie reflects the
value of our work and the values we practice as a company.
In addition to protecting the financial stability of individuals and families,
our benefits help rebuild careers and lives. We recently received a letter
from a Unum customer who was forced by injury to leave his 17-year
career in law enforcement. His disability benefit payments were vital,
but equally important was the support of our vocational rehabilitation
experts who helped him identify new career opportunities and prepared
him for job interviews in new fields.
The difference our people made is clear in his note: “When I called to
report that I have been re-employed . . . the first thing she did was
congratulate me and express how happy she was for me. It means a lot
when people who you do not even know are just as happy for your
advancement in life as members of your own family.”
Last year alone, we paid more than $6.8 billion in benefits and helped
some 327,000 people return to work. There are stories like these behind
each one of them. They motivate and inspire us, while providing a steady
reminder that our business delivers value that goes well beyond the
bottom line.
KEEPING PACE WITH A CHANGING ENVIRONMENT
Delivering on our strategy will require that we keep pace with the rapid
change that is happening all around us. Embracing change is a central
focus for us, because those organizations that find ways to adapt faster
and more effectively will have a clear advantage moving forward.
At Unum, we’re no strangers to change. From an organizational
perspective, we have had several well-executed transitions at the
senior leadership level, as well as on our Board of Directors, over
the last five years. The stability and continuity that are hallmarks of
our culture played a key role in not only assuring smooth transitions,
but also enabling us to continue to achieve outstanding results amid
these changes.
We also find ourselves adapting to fast-evolving consumer expectations
about service and responsiveness. No longer is “the competition”
limited to other insurers. When it comes to customer service, consumers
today are less likely to differentiate between industries. Instead
they expect a high level of service whether they are talking to their
insurance company, making an online purchase or buying a latte at
the coffee shop.
In a relatively short time, nearly everything about the ways all
of us shop, bank, even plan our vacations, has moved to an online,
on-demand, one-stop-shop approach. In response, we need to
think more broadly and remain open to new business approaches.
Our focused approach is evident in our investment
philosophy. We not only have a disciplined approach
to running our businesses, we have maintained a
prudent investment strategy that steers clear of risky
investments and focuses on supportingour broad
portfolio of products.
With more than $50 billion under active management,
our investment portfolio is designed to match the
long-term nature of our business. The high quality of
our investments means we have a significantly lower
default experience than the market average, and low
exposure to problem areas.
Although today’s stubbornly low interest rates
continue to put pressure on our investment income,
we are able to offset this impact by adjusting the
pricing of many of our products to accommodate
changing economic environments and their impact
on our profitability.
Through it all, we have a responsibility to make
investment decisions that are in the best interests of
our shareholders and customers. That means looking
for sensible opportunities that provide attractive
returns over the long term. It’s a simple but powerful
guiding principle.
Our Investment
Philosophy
“ Embracing change is a central focus for
us, because those organizations that
find ways to adapt faster and more
effectively will have a clear advantage
moving forward.”