Unum 2015 Annual Report Download - page 52

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Management’s Discussion and Analysis
of Financial Condition and Results of Operations
50 Unum 2015 Annual Report
Sales
Year Ended December 31
(in millions of dollars) 2015 % Change 2014 % Change 2013
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability $239.7 7.2% $223.6 29.0% $173.3
Group Short-term Disability 119.7 0.8 118.8 16.6 101.9
Group Life and AD&D 250.1 (5.6) 264.8 32.8 199.4
Subtotal 609.5 0.4 607.2 27.9 474.6
Supplemental and Voluntary
Individual Disability 67.5 18.8 56.8 8.8 52.2
Voluntary Benefits 262.6 10.3 238.1 8.8 218.8
Subtotal 330.1 11.9 294.9 8.8 271.0
Total Sales $939.6 4.2 $902.1 21.0 $745.6
Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 lives) $405.4 0.9% $401.7 23.8% $324.4
Large Case Market 204.1 (0.7) 205.5 36.8 150.2
Subtotal 609.5 0.4 607.2 27.9 474.6
Supplemental and Voluntary 330.1 11.9 294.9 8.8 271.0
Total Sales $939.6 4.2 $902.1 21.0 $745.6
Year Ended December 31, 2015 Compared with Year Ended December 31, 2014
Group disability sales increased in 2015 compared to 2014 due to higher sales to existing customers in both the core market,
which we define as employee groups with fewer than 2,000 lives, and in the large case market. Sales for group life and accidental death
and dismemberment declined during 2015 compared to 2014 due to lower sales to new customers, partially offset by higher sales to
existing customers in the core market. The sales mix in the group market sector for 2015 was approximately 67 percent core market and
33 percent large case market, generally consistent with the level of 2014.
Individual disability sales, which are primarily concentrated in the multi-life market, increased in 2015 due primarily to sales to new
customers. Sales of voluntary benefits were higher in 2015 compared to 2014, with increases in both core and large case market sales.
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 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.