EX-99.1 2 unm12312014exhibit991suppl.htm EXHIBIT 99.1 UNM.12.31.2014 Exhibit 99.1 Supplement






Unum Group
Supplemental Exhibit for ASU 2014-01

 TABLE OF CONTENTS
(Dollars in millions, except share data and where noted)
Unaudited

 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N.M. = not a meaningful percentage





Unum Group Consolidated Balance Sheets - Adjusted for ASU 2014-01

 
December 31
 
2014
 
2013
Assets
 
 
 
Investments
 
 
 
Fixed Maturity Securities
$
45,064.9

 
$
42,344.4

Mortgage Loans
1,856.6

 
1,815.1

Policy Loans
3,306.6

 
3,276.0

Other Long-term Investments
545.0

 
536.5

Short-term Investments
974.3

 
913.4

Total Investments
51,747.4

 
48,885.4

 
 
 
 
Other Assets
 
 
 
Cash and Bank Deposits
102.5

 
94.1

Accounts and Premiums Receivable
1,634.7

 
1,647.8

Reinsurance Recoverable
4,906.4

 
4,806.5

Accrued Investment Income
696.1

 
700.2

Deferred Acquisition Costs
1,901.3

 
1,829.2

Goodwill
198.7

 
200.9

Property and Equipment
531.7

 
511.9

Income Tax Receivable
69.5

 
50.3

Other Assets
661.9

 
647.8

Total Assets
$
62,450.2

 
$
59,374.1

 
 
 
 
Liabilities
 
 
 
Policy and Contract Benefits
$
1,529.3

 
$
1,511.0

Reserves for Future Policy and Contract Benefits
45,929.4

 
43,099.1

Unearned Premiums
396.6

 
413.8

Other Policyholders' Funds
1,657.8

 
1,658.4

Deferred Income Tax
62.0

 
134.0

Short-term Debt
151.9

 

Long-term Debt - Non-recourse
398.4

 
440.0

Long-term Debt - All Other
2,230.3

 
2,172.0

Other Liabilities
1,572.6

 
1,305.9

Total Liabilities
53,928.3

 
50,734.2

 
 
 
 
Stockholders’ Equity
 
 
 
Common Stock
30.2

 
36.1

Additional Paid-in Capital
2,221.2

 
2,634.1

Accumulated Other Comprehensive Income
166.4

 
255.0

Retained Earnings
7,302.3

 
8,064.0

Treasury Stock
(1,198.2
)
 
(2,349.3
)
Total Stockholders’ Equity
8,521.9

 
8,639.9

Total Liabilities and Stockholders’ Equity
$
62,450.2

 
$
59,374.1


1



Unum Group Metrics - Adjusted for ASU 2014-01

 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage Ratio
25.3
%
 
25.2
%
 
24.2
%
 
23.8
%
 
23.0
%
 
25.5
%
 
24.1
%
 
24.0
%
 
25.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book Value (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity, As Reported
$
8,604.6

 
$
8,547.0

 
$
8,367.0

 
$
8,653.5

 
$
8,639.9

 
$
8,933.4

 
$
9,218.3

 
$
9,216.6

 
$
8,521.9

Net Unrealized Gain on Securities
873.5

 
792.4

 
295.6

 
427.4

 
135.7

 
325.3

 
501.2

 
462.0

 
290.3

Net Gain on Cash Flow Hedges
401.6

 
399.6

 
405.5

 
397.2

 
396.3

 
398.0

 
369.5

 
383.5

 
391.0

Total Stockholders' Equity, As Adjusted
7,329.5

 
7,355.0

 
7,665.9

 
7,828.9

 
8,107.9

 
8,210.1

 
8,347.6

 
8,371.1

 
7,840.6

Foreign Currency Translation Adjustment
(72.6
)
 
(142.5
)
 
(141.6
)
 
(73.4
)
 
(47.1
)
 
(39.5
)
 
(9.3
)
 
(69.5
)
 
(113.4
)
Subtotal
7,402.1

 
7,497.5

 
7,807.5

 
7,902.3

 
8,155.0

 
8,249.6

 
8,356.9

 
8,440.6

 
7,954.0

Unrecognized Pension and Postretirement Benefit Costs
(574.5
)
 
(563.8
)
 
(342.8
)
 
(341.6
)
 
(229.9
)
 
(229.4
)
 
(229.5
)
 
(227.4
)
 
(401.5
)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income
$
7,976.6

 
$
8,061.3

 
$
8,150.3

 
$
8,243.9

 
$
8,384.9

 
$
8,479.0

 
$
8,586.4

 
$
8,668.0

 
$
8,355.5

 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
Book Value (per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity, As Reported
$
31.84

 
$
32.02

 
$
31.75

 
$
33.14

 
$
33.23

 
$
34.68

 
$
36.19

 
$
36.58

 
$
33.78

Net Unrealized Gain on Securities
3.23

 
2.97

 
1.12

 
1.64

 
0.52

 
1.26

 
1.97

 
1.83

 
1.15

Net Gain on Cash Flow Hedges
1.48

 
1.50

 
1.54

 
1.52

 
1.52

 
1.55

 
1.44

 
1.52

 
1.55

Total Stockholders' Equity, As Adjusted
27.13

 
27.55

 
29.09

 
29.98

 
31.19

 
31.87

 
32.78

 
33.23

 
31.08

Foreign Currency Translation Adjustment
(0.26
)
 
(0.53
)
 
(0.53
)
 
(0.28
)
 
(0.18
)
 
(0.16
)
 
(0.03
)
 
(0.27
)
 
(0.45
)
Subtotal
27.39

 
28.08

 
29.62

 
30.26

 
31.37

 
32.03

 
32.81

 
33.50

 
31.53

Unrecognized Pension and Postretirement Benefit Costs
(2.13
)
 
(2.12
)
 
(1.30
)
 
(1.31
)
 
(0.88
)
 
(0.89
)
 
(0.90
)
 
(0.91
)
 
(1.59
)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income
$
29.52

 
$
30.20

 
$
30.92

 
$
31.57

 
$
32.25

 
$
32.92

 
$
33.71

 
$
34.41

 
$
33.12






2



Unum Group Metrics - Adjusted for ASU 2014-01 - Continued
 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
After-tax Operating Earnings per Share*
$
3.13

 
$
0.79

 
$
0.81

 
$
0.84

 
$
0.84

 
$
3.28

 
$
0.85

 
$
0.90

 
$
0.86

 
$
0.89

 
$
3.51


*Assuming Dilution

 
Year Ended
 
12/31/2012
 
12/31/2013
 
12/31/2014
Operating Return on Equity
 
 
 
 
 
Unum US
13.7
%
 
13.4
%
 
13.3
%
Unum UK
12.2
%
 
14.0
%
 
18.3
%
Colonial Life
16.7
%
 
16.4
%
 
16.7
%
Core Operating Segments
14.1
%
 
14.1
%
 
14.5
%
Consolidated
12.2
%
 
11.3
%
 
11.3
%


2. 1



Unum Group Consolidated Statements of Operations - Adjusted for ASU 2014-01
 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
$
7,716.1

 
$
1,930.9

 
$
1,905.8

 
$
1,897.3

 
$
1,890.7

 
$
7,624.7

 
$
1,938.5

 
$
1,943.6

 
$
1,947.2

 
$
1,967.9

 
$
7,797.2

Net Investment Income
2,531.3

 
624.7

 
629.9

 
619.0

 
633.3

 
2,506.9

 
615.8

 
632.4

 
611.3

 
632.7

 
2,492.2

Net Realized Investment Gain (Loss)
56.2

 
10.3

 
13.3

 
(26.1
)
 
9.3

 
6.8

 
6.3

 
25.9

 
1.2

 
(17.3
)
 
16.1

Other Income
227.9

 
62.5

 
56.7

 
54.2

 
56.8

 
230.2

 
53.8

 
54.9

 
54.6

 
55.7

 
219.0

Total Revenue
10,531.5

 
2,628.4

 
2,605.7

 
2,544.4

 
2,590.1

 
10,368.6

 
2,614.4

 
2,656.8

 
2,614.3

 
2,639.0

 
10,524.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
6,722.2

 
1,648.5

 
1,661.8

 
1,641.6

 
1,643.8

 
6,595.7

 
1,631.3

 
1,653.4

 
1,653.6

 
2,372.5

 
7,310.8

Commissions
917.2

 
238.2

 
220.8

 
222.6

 
227.9

 
909.5

 
236.0

 
229.2

 
232.0

 
238.1

 
935.3

Interest and Debt Expense - Non-recourse Debt
11.5

 
2.3

 
2.1

 
2.1

 
2.0

 
8.5

 
1.9

 
1.8

 
1.8

 
1.8

 
7.3

Interest and Debt Expense - All Other Debt
133.9

 
34.8

 
35.2

 
35.3

 
35.6

 
140.9

 
36.0

 
50.9

 
36.6

 
36.7

 
160.2

Deferral of Acquisition Costs
(467.3
)
 
(118.2
)
 
(113.3
)
 
(117.8
)
 
(117.5
)
 
(466.8
)
 
(129.0
)
 
(124.8
)
 
(127.8
)
 
(142.4
)
 
(524.0
)
Amortization of Deferred Acquisition Costs
378.7

 
123.8

 
101.3

 
98.6

 
95.2

 
418.9

 
118.6

 
106.4

 
107.9

 
107.9

 
440.8

Other Expenses
1,569.7

 
391.6

 
382.5

 
374.4

 
393.4

 
1,541.9

 
389.8

 
390.1

 
393.2

 
479.0

 
1,652.1

Total Benefits and Expenses
9,265.9

 
2,321.0

 
2,290.4

 
2,256.8

 
2,280.4

 
9,148.6

 
2,284.6

 
2,307.0

 
2,297.3

 
3,093.6

 
9,982.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Tax
1,265.6

 
307.4

 
315.3

 
287.6

 
309.7

 
1,220.0

 
329.8

 
349.8

 
317.0

 
(454.6
)
 
542.0

Income Tax Expense
377.5

 
97.7

 
99.3

 
84.9

 
91.1

 
373.0

 
104.0

 
110.4

 
97.9

 
(172.4
)
 
139.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
888.1

 
$
209.7

 
$
216.0

 
$
202.7

 
$
218.6

 
$
847.0

 
$
225.8

 
$
239.4

 
$
219.1

 
$
(282.2
)
 
$
402.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
3.16

 
$
0.78

 
$
0.81

 
$
0.77

 
$
0.84

 
$
3.20

 
$
0.87

 
$
0.93

 
$
0.86

 
$
(1.12
)
 
$
1.57

Assuming Dilution
$
3.15

 
$
0.78

 
$
0.81

 
$
0.77

 
$
0.83

 
$
3.19

 
$
0.86

 
$
0.93

 
$
0.86

 
$
(1.12
)
 
$
1.57





3



Unum Group Financial Results for Unum US Segment - Adjusted for ASU 2014-01

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
$
4,456.5

 
$
1,139.7

 
$
1,131.5

 
$
1,124.6

 
$
1,121.3

 
$
4,517.1

 
$
1,152.5

 
$
1,157.7

 
$
1,162.7

 
$
1,186.8

 
$
4,659.7

Net Investment Income
948.0

 
232.8

 
228.2

 
230.2

 
228.2

 
919.4

 
223.1

 
218.2

 
214.4

 
223.2

 
878.9

Other Income
124.6

 
36.7

 
32.1

 
30.2

 
29.3

 
128.3

 
30.9

 
30.3

 
30.2

 
30.7

 
122.1

Total
5,529.1

 
1,409.2

 
1,391.8

 
1,385.0

 
1,378.8

 
5,564.8

 
1,406.5

 
1,406.2

 
1,407.3

 
1,440.7

 
5,660.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
3,238.6

 
807.9

 
814.7

 
810.0

 
789.8

 
3,222.4

 
809.5

 
814.8

 
818.0

 
845.8

 
3,288.1

Commissions
507.5

 
135.9

 
122.7

 
124.3

 
122.3

 
505.2

 
136.5

 
129.7

 
130.3

 
132.2

 
528.7

Deferral of Acquisition Costs
(249.2
)
 
(64.0
)
 
(60.2
)
 
(65.3
)
 
(62.5
)
 
(252.0
)
 
(74.3
)
 
(69.6
)
 
(70.6
)
 
(78.2
)
 
(292.7
)
Amortization of Deferred Acquisition Costs
196.5

 
76.7

 
54.8

 
49.7

 
48.8

 
230.0

 
70.9

 
59.4

 
58.5

 
59.3

 
248.1

Other Expenses
992.9

 
247.5

 
248.7

 
249.4

 
255.2

 
1,000.8

 
256.4

 
256.1

 
259.0

 
272.1

 
1,043.6

Total
4,686.3

 
1,204.0

 
1,180.7

 
1,168.1

 
1,153.6

 
4,706.4

 
1,199.0

 
1,190.4

 
1,195.2

 
1,231.2

 
4,815.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Tax and Net Realized Investment Gains and Losses
842.8

 
205.2

 
211.1

 
216.9

 
225.2

 
858.4

 
207.5

 
215.8

 
212.1

 
209.5

 
844.9

Unclaimed Death Benefits (UDB) Reserve Increase

 

 

 

 
75.4

 
75.4

 

 

 

 

 

Group Life Waiver of Premium Benefit (Waiver) Reserve Reduction

 

 

 

 
(85.0
)
 
(85.0
)
 

 

 

 

 

Operating Income
$
842.8

 
$
205.2

 
$
211.1

 
$
216.9

 
$
215.6

 
$
848.8

 
$
207.5

 
$
215.8

 
$
212.1

 
$
209.5

 
$
844.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Ratio
18.9
%
 
18.0
%
 
18.7
%
 
19.3
%
 
20.1
%
 
19.0
%
 
18.0
%
 
18.6
%
 
18.2
%
 
17.7
%
 
18.1
%
Operating Income Ratio
18.9
%
 
18.0
%
 
18.7
%
 
19.3
%
 
19.2
%
 
18.8
%
 
18.0
%
 
18.6
%
 
18.2
%
 
17.7
%
 
18.1
%




4



Unum Group Financial Results for Unum US Group Disability - Adjusted for ASU 2014-01

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
1,578.8

 
$
392.7

 
$
394.8

 
$
385.0

 
$
381.4

 
$
1,553.9

 
$
383.5

 
$
386.2

 
$
387.7

 
$
396.1

 
$
1,553.5

Group Short-term Disability
476.7

 
131.0

 
129.1

 
129.5

 
130.0

 
519.6

 
137.3

 
137.8

 
138.3

 
144.7

 
558.1

Total Premium Income
2,055.5

 
523.7

 
523.9

 
514.5

 
511.4

 
2,073.5

 
520.8

 
524.0

 
526.0

 
540.8

 
2,111.6

Net Investment Income
575.6

 
140.8

 
136.7

 
136.3

 
133.6

 
547.4

 
131.5

 
127.5

 
124.8

 
132.1

 
515.9

Other Income
93.7

 
27.8

 
22.7

 
23.1

 
22.0

 
95.6

 
21.8

 
22.9

 
22.9

 
23.4

 
91.0

Total
2,724.8

 
692.3

 
683.3

 
673.9

 
667.0

 
2,716.5

 
674.1

 
674.4

 
673.7

 
696.3

 
2,718.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
1,741.6

 
441.4

 
439.6

 
426.3

 
425.6

 
1,732.9

 
432.5

 
429.1

 
431.9

 
452.9

 
1,746.4

Commissions
159.3

 
43.6

 
40.7

 
40.3

 
39.4

 
164.0

 
41.4

 
39.8

 
39.7

 
40.3

 
161.2

Deferral of Acquisition Costs
(26.3
)
 
(6.7
)
 
(6.9
)
 
(8.6
)
 
(7.4
)
 
(29.6
)
 
(9.9
)
 
(9.1
)
 
(9.3
)
 
(11.9
)
 
(40.2
)
Amortization of Deferred Acquisition Costs
18.3

 
5.2

 
5.2

 
5.4

 
5.3

 
21.1

 
6.5

 
6.5

 
6.5

 
6.8

 
26.3

Other Expenses
540.1

 
131.6

 
132.7

 
132.6

 
135.5

 
532.4

 
136.0

 
135.4

 
136.3

 
142.3

 
550.0

Total
2,433.0

 
615.1

 
611.3

 
596.0

 
598.4

 
2,420.8

 
606.5

 
601.7

 
605.1

 
630.4

 
2,443.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
291.8

 
$
77.2

 
$
72.0

 
$
77.9

 
$
68.6

 
$
295.7

 
$
67.6

 
$
72.7

 
$
68.6

 
$
65.9

 
$
274.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income Ratio (% of Premium Income)
14.2
%
 
14.7
%
 
13.7
%
 
15.1
%
 
13.4
%
 
14.3
%
 
13.0
%
 
13.9
%
 
13.0
%
 
12.2
%
 
13.0
%





4. 1



Unum Group Financial Results for Unum US Group Life and Accidental Death & Dismemberment - Adjusted for ASU 2014-01

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Life
$
1,182.1

 
$
302.2

 
$
303.6

 
$
305.2

 
$
302.9

 
$
1,213.9

 
$
309.9

 
$
313.2

 
$
316.1

 
$
323.1

 
$
1,262.3

Accidental Death & Dismemberment
115.3

 
30.9

 
30.2

 
30.5

 
30.0

 
121.6

 
30.6

 
31.1

 
32.2

 
32.0

 
125.9

Total Premium Income
1,297.4

 
333.1

 
333.8

 
335.7

 
332.9

 
1,335.5

 
340.5

 
344.3

 
348.3

 
355.1

 
1,388.2

Net Investment Income
145.4

 
34.8

 
33.9

 
35.7

 
34.7

 
139.1

 
34.1

 
33.2

 
33.8

 
34.1

 
135.2

Other Income
1.9

 
0.5

 
0.4

 
0.6

 
0.3

 
1.8

 
0.4

 
0.4

 
0.4

 
0.2

 
1.4

Total
1,444.7

 
368.4

 
368.1

 
372.0

 
367.9

 
1,476.4

 
375.0

 
377.9

 
382.5

 
389.4

 
1,524.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
936.4

 
235.3

 
237.3

 
240.3

 
197.0

 
909.9

 
239.3

 
241.5

 
243.7

 
251.3

 
975.8

Commissions
104.6

 
28.4

 
27.2

 
27.4

 
25.9

 
108.9

 
28.5

 
28.0

 
28.3

 
28.5

 
113.3

Deferral of Acquisition Costs
(22.4
)
 
(5.7
)
 
(5.7
)
 
(7.3
)
 
(6.0
)
 
(24.7
)
 
(7.2
)
 
(7.5
)
 
(7.3
)
 
(9.3
)
 
(31.3
)
Amortization of Deferred Acquisition Costs
13.6

 
4.1

 
3.6

 
4.0

 
3.9

 
15.6

 
5.3

 
5.3

 
5.2

 
5.6

 
21.4

Other Expenses
193.1

 
49.3

 
49.6

 
49.9

 
49.4

 
198.2

 
50.4

 
50.0

 
50.8

 
54.0

 
205.2

Total
1,225.3

 
311.4

 
312.0

 
314.3

 
270.2

 
1,207.9

 
316.3

 
317.3

 
320.7

 
330.1

 
1,284.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Tax and Net Realized Investment Gains and Losses
219.4

 
57.0

 
56.1

 
57.7

 
97.7

 
268.5

 
58.7

 
60.6

 
61.8

 
59.3

 
240.4

UDB Reserve Increase

 

 

 

 
49.1

 
49.1

 

 

 

 

 

Group Life Waiver Reserve Reduction

 

 

 

 
(85.0
)
 
(85.0
)
 

 

 

 

 

Operating Income
$
219.4

 
$
57.0

 
$
56.1

 
$
57.7

 
$
61.8

 
$
232.6

 
$
58.7

 
$
60.6

 
$
61.8

 
$
59.3

 
$
240.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Ratio
16.9
%
 
17.1
%
 
16.8
%
 
17.2
%
 
29.3
%
 
20.1
%
 
17.2
%
 
17.6
%
 
17.7
%
 
16.7
%
 
17.3
%
Operating Income Ratio
16.9
%
 
17.1
%
 
16.8
%
 
17.2
%
 
18.6
%
 
17.4
%
 
17.2
%
 
17.6
%
 
17.7
%
 
16.7
%
 
17.3
%





4. 2



Unum Group Financial Results for Unum US Supplemental and Voluntary - Adjusted for ASU 2014-01

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
$
477.6

 
$
120.1

 
$
114.3

 
$
114.9

 
$
116.0

 
$
465.3

 
$
115.9

 
$
116.0

 
$
116.9

 
$
117.3

 
$
466.1

Voluntary Benefits
626.0

 
162.8

 
159.5

 
159.5

 
161.0

 
642.8

 
175.3

 
173.4

 
171.5

 
173.6

 
693.8

Total Premium Income
1,103.6

 
282.9

 
273.8

 
274.4

 
277.0

 
1,108.1

 
291.2

 
289.4

 
288.4

 
290.9

 
1,159.9

Net Investment Income
227.0

 
57.2

 
57.6

 
58.2

 
59.9

 
232.9

 
57.5

 
57.5

 
55.8

 
57.0

 
227.8

Other Income
29.0

 
8.4

 
9.0

 
6.5

 
7.0

 
30.9

 
8.7

 
7.0

 
6.9

 
7.1

 
29.7

Total
1,359.6

 
348.5

 
340.4

 
339.1

 
343.9

 
1,371.9

 
357.4

 
353.9

 
351.1

 
355.0

 
1,417.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
560.6

 
131.2

 
137.8

 
143.4

 
167.2

 
579.6

 
137.7

 
144.2

 
142.4

 
141.6

 
565.9

Commissions
243.6

 
63.9

 
54.8

 
56.6

 
57.0

 
232.3

 
66.6

 
61.9

 
62.3

 
63.4

 
254.2

Deferral of Acquisition Costs
(200.5
)
 
(51.6
)
 
(47.6
)
 
(49.4
)
 
(49.1
)
 
(197.7
)
 
(57.2
)
 
(53.0
)
 
(54.0
)
 
(57.0
)
 
(221.2
)
Amortization of Deferred Acquisition Costs
164.6

 
67.4

 
46.0

 
40.3

 
39.6

 
193.3

 
59.1

 
47.6

 
46.8

 
46.9

 
200.4

Other Expenses
259.7

 
66.6

 
66.4

 
66.9

 
70.3

 
270.2

 
70.0

 
70.7

 
71.9

 
75.8

 
288.4

Total
1,028.0

 
277.5

 
257.4

 
257.8

 
285.0

 
1,077.7

 
276.2

 
271.4

 
269.4

 
270.7

 
1,087.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Tax and Net Realized Investment Gains and Losses
331.6

 
71.0

 
83.0

 
81.3

 
58.9

 
294.2

 
81.2

 
82.5

 
81.7

 
84.3

 
329.7

UDB Reserve Increase

 

 

 

 
26.3

 
26.3

 

 

 

 

 

Operating Income
$
331.6

 
$
71.0

 
$
83.0

 
$
81.3

 
$
85.2

 
$
320.5

 
$
81.2

 
$
82.5

 
$
81.7

 
$
84.3

 
$
329.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Ratio
30.0
%
 
25.1
%
 
30.3
%
 
29.6
%
 
21.3
%
 
26.5
%
 
27.9
%
 
28.5
%
 
28.3
%
 
29.0
%
 
28.4
%
Operating Income Ratio
30.0
%
 
25.1
%
 
30.3
%
 
29.6
%
 
30.8
%
 
28.9
%
 
27.9
%
 
28.5
%
 
28.3
%
 
29.0
%
 
28.4
%

4. 3



Unum Group Financial Results for Unum UK Segment

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
409.7

 
$
97.9

 
$
96.3

 
$
96.5

 
$
99.2

 
$
389.9

 
$
103.0

 
$
105.9

 
$
104.5

 
$
105.5

 
$
418.9

Group Life
221.3

 
31.0

 
26.5

 
25.6

 
23.3

 
106.4

 
34.8

 
33.7

 
34.1

 
30.6

 
133.2

Supplemental
63.6

 
14.9

 
14.8

 
15.2

 
15.4

 
60.3

 
13.9

 
14.4

 
14.0

 
12.8

 
55.1

Total Premium Income
694.6

 
143.8

 
137.6

 
137.3

 
137.9

 
556.6

 
151.7

 
154.0

 
152.6

 
148.9

 
607.2

Net Investment Income
170.8

 
30.8

 
45.4

 
30.3

 
42.0

 
148.5

 
33.6

 
44.3

 
34.4

 
38.7

 
151.0

Other Income (Loss)
0.1

 
0.1

 
(0.1
)
 
0.1

 

 
0.1

 
(0.1
)
 
0.2

 

 
(0.1
)
 

Total
865.5

 
174.7

 
182.9

 
167.7

 
179.9

 
705.2

 
185.2

 
198.5

 
187.0

 
187.5

 
758.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
541.4

 
100.0

 
115.8

 
96.9

 
100.6

 
413.3

 
106.4

 
114.0

 
108.0

 
102.6

 
431.0

Commissions
42.6

 
10.3

 
8.5

 
9.6

 
9.6

 
38.0

 
9.9

 
10.6

 
11.5

 
10.8

 
42.8

Deferral of Acquisition Costs
(11.8
)
 
(2.3
)
 
(2.4
)
 
(2.4
)
 
(2.7
)
 
(9.8
)
 
(2.2
)
 
(2.5
)
 
(2.9
)
 
(2.9
)
 
(10.5
)
Amortization of Deferred Acquisition Costs
15.7

 
4.1

 
3.5

 
3.6

 
3.5

 
14.7

 
3.2

 
3.2

 
3.2

 
2.9

 
12.5

Other Expenses
146.3

 
31.3

 
24.0

 
28.7

 
33.0

 
117.0

 
31.4

 
33.6

 
33.7

 
35.9

 
134.6

Total
734.2

 
143.4

 
149.4

 
136.4

 
144.0

 
573.2

 
148.7

 
158.9

 
153.5

 
149.3

 
610.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
131.3

 
$
31.3

 
$
33.5

 
$
31.3

 
$
35.9

 
$
132.0

 
$
36.5

 
$
39.6

 
$
33.5

 
$
38.2

 
$
147.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income Ratio (% of Premium Income)
18.9
%
 
21.8
%
 
24.3
%
 
22.8
%
 
26.0
%
 
23.7
%
 
24.1
%
 
25.7
%
 
22.0
%
 
25.7
%
 
24.3
%




5



Unum Group Financial Results for Unum UK Segment - Continued
(in millions of pounds, except exchange rate)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
£
258.4

 
£
63.1

 
£
62.7

 
£
62.2

 
£
61.2

 
£
249.2

 
£
62.2

 
£
62.9

 
£
62.7

 
£
66.6

 
£
254.4

Group Life
139.6

 
20.0

 
17.3

 
16.5

 
14.4

 
68.2

 
21.0

 
20.0

 
20.5

 
19.3

 
80.8

Supplemental
40.1

 
9.7

 
9.6

 
9.7

 
9.5

 
38.5

 
8.4

 
8.6

 
8.3

 
8.1

 
33.4

Total Premium Income
438.1

 
92.8

 
89.6

 
88.4

 
85.1

 
355.9

 
91.6

 
91.5

 
91.5

 
94.0

 
368.6

Net Investment Income
107.7

 
19.8

 
29.6

 
19.5

 
26.0

 
94.9

 
20.3

 
26.3

 
20.6

 
24.4

 
91.6

Other Income (Loss)

 

 

 
0.1

 

 
0.1

 

 
0.1

 
(0.1
)
 
0.1

 
0.1

Total
545.8

 
112.6

 
119.2

 
108.0

 
111.1

 
450.9

 
111.9

 
117.9

 
112.0

 
118.5

 
460.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
341.4

 
64.5

 
75.4

 
62.4

 
62.2

 
264.5

 
64.3

 
67.7

 
64.7

 
64.7

 
261.4

Commissions
26.9

 
6.6

 
5.6

 
6.1

 
6.0

 
24.3

 
6.0

 
6.3

 
6.9

 
6.8

 
26.0

Deferral of Acquisition Costs
(7.5
)
 
(1.5
)
 
(1.6
)
 
(1.5
)
 
(1.6
)
 
(6.2
)
 
(1.3
)
 
(1.5
)
 
(1.7
)
 
(1.9
)
 
(6.4
)
Amortization of Deferred Acquisition Costs
9.9

 
2.7

 
2.3

 
2.3

 
2.0

 
9.3

 
1.9

 
1.9

 
1.9

 
1.9

 
7.6

Other Expenses
92.2

 
20.1

 
15.7

 
18.6

 
20.3

 
74.7

 
19.0

 
19.9

 
20.1

 
22.9

 
81.9

Total
462.9

 
92.4

 
97.4

 
87.9

 
88.9

 
366.6

 
89.9

 
94.3

 
91.9

 
94.4

 
370.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
£
82.9

 
£
20.2

 
£
21.8

 
£
20.1

 
£
22.2

 
£
84.3

 
£
22.0

 
£
23.6

 
£
20.1

 
£
24.1

 
£
89.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Pound/Dollar Exchange Rate
1.584

 
1.550

 
1.537

 
1.557

 
1.617

 
1.566

 
1.659

 
1.678

 
1.667

 
1.585

 
1.646





5. 1



Unum Group Financial Results for Colonial Life Segment - Adjusted for ASU 2014-01

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accident, Sickness, and Disability
$
724.5

 
$
184.8

 
$
184.7

 
$
185.0

 
$
184.2

 
$
738.7

 
$
189.1

 
$
189.2

 
$
190.7

 
$
190.8

 
$
759.8

Life
209.7

 
54.8

 
55.3

 
55.6

 
55.4

 
221.1

 
57.4

 
57.5

 
57.9

 
59.0

 
231.8

Cancer and Critical Illness
260.3

 
67.5

 
67.9

 
68.5

 
68.5

 
272.4

 
69.9

 
70.1

 
70.8

 
71.3

 
282.1

Total Premium Income
1,194.5

 
307.1

 
307.9

 
309.1

 
308.1

 
1,232.2

 
316.4

 
316.8

 
319.4

 
321.1

 
1,273.7

Net Investment Income
137.7

 
39.4

 
34.0

 
35.9

 
34.8

 
144.1

 
36.6

 
35.8

 
35.5

 
37.6

 
145.5

Other Income (Loss)
0.3

 

 
0.1

 

 
0.1

 
0.2

 
(0.1
)
 
0.1

 
0.1

 

 
0.1

Total
1,332.5

 
346.5

 
342.0

 
345.0

 
343.0

 
1,376.5

 
352.9

 
352.7

 
355.0

 
358.7

 
1,419.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
627.3

 
161.3

 
160.3

 
164.0

 
181.4

 
667.0

 
159.8

 
164.6

 
168.3

 
167.9

 
660.6

Commissions
254.5

 
64.0

 
62.5

 
61.9

 
64.1

 
252.5

 
63.5

 
63.5

 
64.6

 
70.7

 
262.3

Deferral of Acquisition Costs
(206.3
)
 
(51.9
)
 
(50.7
)
 
(50.1
)
 
(52.3
)
 
(205.0
)
 
(52.5
)
 
(52.7
)
 
(54.3
)
 
(61.3
)
 
(220.8
)
Amortization of Deferred Acquisition Costs
166.5

 
43.0

 
43.0

 
45.3

 
42.9

 
174.2

 
44.5

 
43.8

 
46.2

 
45.7

 
180.2

Other Expenses
217.1

 
55.0

 
56.1

 
55.3

 
57.9

 
224.3

 
58.5

 
58.6

 
59.2

 
61.7

 
238.0

Total
1,059.1

 
271.4

 
271.2

 
276.4

 
294.0

 
1,113.0

 
273.8

 
277.8

 
284.0

 
284.7

 
1,120.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Tax and Net Realized Investment Gains and Losses
273.4

 
75.1

 
70.8

 
68.6

 
49.0

 
263.5

 
79.1

 
74.9

 
71.0

 
74.0

 
299.0

UDB Reserve Increase

 

 

 

 
20.1

 
20.1

 

 

 

 

 

Operating Income
$
273.4

 
$
75.1

 
$
70.8

 
$
68.6

 
$
69.1

 
$
283.6

 
$
79.1

 
$
74.9

 
$
71.0

 
$
74.0

 
$
299.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Ratio
22.9
%
 
24.5
%
 
23.0
%
 
22.2
%
 
15.9
%
 
21.4
%
 
25.0
%
 
23.6
%
 
22.2
%
 
23.0
%
 
23.5
%
Operating Income Ratio
22.9
%
 
24.5
%
 
23.0
%
 
22.2
%
 
22.4
%
 
23.0
%
 
25.0
%
 
23.6
%
 
22.2
%
 
23.0
%
 
23.5
%




6



Unum Group Financial Results for Closed Block Segment - Adjusted for ASU 2014-01

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
$
736.4

 
$
181.8

 
$
170.6

 
$
169.3

 
$
165.8

 
$
687.5

 
$
161.1

 
$
157.8

 
$
154.0

 
$
151.9

 
$
624.8

Long-term Care (LTC)
631.9

 
158.8

 
157.8

 
157.0

 
157.0

 
630.6

 
156.5

 
157.1

 
158.3

 
159.0

 
630.9

All Other
2.2

 
(0.3
)
 
0.4

 

 
0.6

 
0.7

 
0.3

 
0.2

 
0.2

 
0.2

 
0.9

Total Premium Income
1,370.5

 
340.3

 
328.8

 
326.3

 
323.4

 
1,318.8

 
317.9

 
315.1

 
312.5

 
311.1

 
1,256.6

Net Investment Income
1,229.7

 
312.4

 
315.6

 
314.7

 
327.5

 
1,270.2

 
315.5

 
325.8

 
317.2

 
323.0

 
1,281.5

Other Income
100.1

 
24.1

 
23.8

 
23.6

 
22.4

 
93.9

 
21.6

 
24.5

 
23.4

 
22.3

 
91.8

Total
2,700.3

 
676.8

 
668.2

 
664.6

 
673.3

 
2,682.9

 
655.0

 
665.4

 
653.1

 
656.4

 
2,629.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
2,314.9

 
579.3

 
571.0

 
570.7

 
572.0

 
2,293.0

 
555.6

 
560.0

 
559.3

 
1,256.2

 
2,931.1

Commissions
112.6

 
28.0

 
27.1

 
26.8

 
31.9

 
113.8

 
26.1

 
25.4

 
25.6

 
24.4

 
101.5

Interest and Debt Expense
10.4

 
2.2

 
2.1

 
2.1

 
2.0

 
8.4

 
1.9

 
1.8

 
1.8

 
1.8

 
7.3

Other Expenses
167.7

 
40.7

 
38.9

 
40.0

 
40.8

 
160.4

 
43.1

 
41.6

 
40.7

 
42.8

 
168.2

Total
2,605.6

 
650.2

 
639.1

 
639.6

 
646.7

 
2,575.6

 
626.7

 
628.8

 
627.4

 
1,325.2

 
3,208.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses
94.7

 
26.6

 
29.1

 
25.0

 
26.6

 
107.3

 
28.3

 
36.6

 
25.7

 
(668.8
)
 
(578.2
)
LTC Reserve Increase

 

 

 

 

 

 

 

 

 
698.2

 
698.2

Operating Income
$
94.7

 
$
26.6

 
$
29.1

 
$
25.0

 
$
26.6

 
$
107.3

 
$
28.3

 
$
36.6

 
$
25.7

 
$
29.4

 
$
120.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Ratio
6.9
%
 
7.8
%
 
8.9
%
 
7.7
%
 
8.2
%
 
8.1
%
 
8.9
%
 
11.6
%
 
8.2
%
 
(215.0
)%
 
(46.0
)%
Operating Income Ratio
6.9
%
 
7.8
%
 
8.9
%
 
7.7
%
 
8.2
%
 
8.1
%
 
8.9
%
 
11.6
%
 
8.2
%
 
9.5
 %
 
9.5
 %




7



Unum Group Financial Results for Corporate Segment - Adjusted for ASU 2014-01

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income
$
45.1

 
$
9.3

 
$
6.7

 
$
7.9

 
$
0.8

 
$
24.7

 
$
7.0

 
$
8.3

 
$
9.8

 
$
10.2

 
$
35.3

Other Income (Loss)
2.8

 
1.6

 
0.8

 
0.3

 
5.0

 
7.7

 
1.5

 
(0.2
)
 
0.9

 
2.8

 
5.0

Total
47.9

 
10.9

 
7.5

 
8.2

 
5.8

 
32.4

 
8.5

 
8.1

 
10.7

 
13.0

 
40.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and Other Expenses
134.3

 
37.1

 
37.1

 
33.6

 
39.7

 
147.5

 
35.0

 
49.7

 
35.8

 
37.4

 
157.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Including Costs Related to Early Retirement of Debt
(86.4
)
 
(26.2
)
 
(29.6
)
 
(25.4
)
 
(33.9
)
 
(115.1
)
 
(26.5
)
 
(41.6
)
 
(25.1
)
 
(24.4
)
 
(117.6
)
Costs Related to Early Retirement of Debt

 

 

 

 

 

 

 
13.2

 

 

 
13.2

Operating Loss
$
(86.4
)
 
$
(26.2
)
 
$
(29.6
)
 
$
(25.4
)
 
$
(33.9
)
 
$
(115.1
)
 
$
(26.5
)
 
$
(28.4
)
 
$
(25.1
)
 
$
(24.4
)
 
$
(104.4
)





8



Unum Group Non-GAAP Financial Measures

We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial measures are better performance measures and better indicators of the revenue and profitability and underlying trends in our business:
Operating revenue, which excludes realized investment gains or losses;
Before-tax operating income or loss, which excludes realized investment gains or losses, non-operating retirement-related gains or losses, income tax, and certain other items, as applicable, and after-tax operating income or loss which includes income tax;
Operating return on equity, which is calculated using after-tax operating income or loss and excludes from equity the unrealized gain or loss on securities and net gain on cash flow hedges;
Leverage ratio, which excludes the unrealized gain or loss on securities and net gain on cash flow hedges, and the non-recourse debt and associated capital of Tailwind Holdings, LLC and Northwind Holdings, LLC; and
Book value per common share, which is calculated excluding AOCI.

Realized investment gains or losses, non-operating retirement-related gains or losses, unrealized gains or losses on securities and net gains on cash flow hedges depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. Leverage ratio and book value per common share excluding certain components of AOCI, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures. We also exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace the comparable GAAP measures in the determination of overall profitability. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 9.1.





9



Unum Group Reconciliation of Non-GAAP Financial Measures

 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
Debt, As Reported
$
2,755.4

 
$
2,673.9

 
$
2,644.0

 
$
2,631.3

 
$
2,612.0

 
$
2,948.2

 
$
2,792.0

 
$
2,783.3

 
$
2,780.6

Excluding Non-recourse Debt
562.5

 
485.0

 
470.0

 
455.0

 
440.0

 
425.0

 
410.0

 
404.8

 
398.4

Debt, As Adjusted
$
2,192.9

 
$
2,188.9

 
$
2,174.0

 
$
2,176.3

 
$
2,172.0

 
$
2,523.2

 
$
2,382.0

 
$
2,378.5

 
$
2,382.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity, As Reported
$
8,604.6

 
$
8,547.0

 
$
8,367.0

 
$
8,653.5

 
$
8,639.9

 
$
8,933.4

 
$
9,218.3

 
$
9,216.6

 
$
8,521.9

Excluding Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges
1,275.1

 
1,192.0

 
701.1

 
824.6

 
532.0

 
723.3

 
870.7

 
845.5

 
681.3

Excluding Northwind and Tailwind Capital
870.6

 
850.1

 
848.0

 
843.0

 
846.4

 
848.5

 
840.0

 
842.0

 
849.9

 
6,458.9

 
6,504.9

 
6,817.9

 
6,985.9

 
7,261.5

 
7,361.6

 
7,507.6

 
7,529.1

 
6,990.7

Debt, As Adjusted
2,192.9

 
2,188.9

 
2,174.0

 
2,176.3

 
2,172.0

 
2,523.2

 
2,382.0

 
2,378.5

 
2,382.2

Total Capital, As Adjusted
$
8,651.8

 
$
8,693.8

 
$
8,991.9

 
$
9,162.2

 
$
9,433.5

 
$
9,884.8

 
$
9,889.6

 
$
9,907.6

 
$
9,372.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage Ratio
25.3
%
 
25.2
%
 
24.2
%
 
23.8
%
 
23.0
%
 
25.5
%
 
24.1
%
 
24.0
%
 
25.4
%

 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Per Share*:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After-tax Operating Income
$
3.13

 
$
0.79

 
$
0.81

 
$
0.84

 
$
0.84

 
$
3.28

 
$
0.85

 
$
0.90

 
$
0.86

 
$
0.89

 
$
3.51

Net Realized Investment Gain (Loss), Net of Tax
0.13

 
0.03

 
0.03

 
(0.06
)
 
0.02

 
0.02

 
0.01

 
0.07

 

 
(0.04
)
 
0.05

Non-operating Retirement-related Loss, Net of Tax
(0.11
)
 
(0.04
)
 
(0.03
)
 
(0.01
)
 

 
(0.08
)
 

 

 

 
(0.17
)
 
(0.18
)
Costs Related to Early Retirement of Debt, Net of Tax

 

 

 

 

 

 

 
(0.04
)
 

 

 
(0.04
)
LTC Reserve Increase, Net of Tax

 

 

 

 

 

 

 

 

 
(1.80
)
 
(1.77
)
UDB Reserve Increase, Net of Tax

 

 

 

 
(0.24
)
 
(0.24
)
 

 

 

 

 

Group Life Waiver Reserve Reduction, Net of Tax

 

 

 

 
0.21

 
0.21

 

 

 

 

 

Net Income (Loss)
$
3.15

 
$
0.78

 
$
0.81

 
$
0.77

 
$
0.83

 
$
3.19

 
$
0.86

 
$
0.93

 
$
0.86

 
$
(1.12
)
 
$
1.57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Assuming Dilution
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


9. 1



Unum Group Reconciliation of Non-GAAP Financial Measures - Continued

 
 
After-Tax Operating Income (Loss)
 
Average Allocated Equity(1)
 
Operating Return on Equity
 
 
 
 
 
 
 
 
Year Ended December 31, 2012
 
 
 
 
 
 
Unum US
 
$
552.6

 
$
4,024.0

 
13.7
%
Unum UK
 
99.2

 
811.2

 
12.2
%
Colonial Life
 
177.7

 
1,064.4

 
16.7
%
Core Operating Segments
 
829.5

 
5,899.6

 
14.1
%
Closed Block
 
61.8

 
2,234.2

 
 
Corporate
 
(10.1
)
 
(896.9
)
 
 
Total
 
$
881.2

 
$
7,236.9

 
12.2
%
 
 
 
 
 
 
 
Year Ended December 31, 2013
 
 
 
 
 
 
Unum US
 
$
556.5

 
$
4,141.8

 
13.4
%
Unum UK
 
104.5

 
744.3

 
14.0
%
Colonial Life
 
184.4

 
1,122.6

 
16.4
%
Core Operating Segments
 
845.4

 
6,008.7

 
14.1
%
Closed Block
 
70.0

 
2,580.4

 
 
Corporate
 
(44.0
)
 
(870.4
)
 
 
Total
 
$
871.4

 
$
7,718.7

 
11.3
%
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
Unum US
 
$
554.9

 
$
4,157.4

 
13.3
%
Unum UK
 
116.4

 
635.3

 
18.3
%
Colonial Life
 
194.4

 
1,163.1

 
16.7
%
Core Operating Segments
 
865.7

 
5,955.8

 
14.5
%
Closed Block
 
79.2

 
2,756.3

 
 
Corporate
 
(45.8
)
 
(737.8
)
 
 
Total
 
$
899.1

 
$
7,974.3

 
11.3
%

(1)Excludes unrealized gain on securities and net gain on cash flow hedges and is calculated using the adjusted stockholders' equity balances presented on page 2 and 9.4.

9. 2



Unum Group Reconciliation of Non-GAAP Financial Measures - Continued

 
Year Ended
 
12/31/2012
 
12/31/2013
 
12/31/2014
After-tax Operating Income
$
881.2

 
$
871.4

 
$
899.1

Net Realized Investment Gain, Net of Tax
37.1

 
3.9

 
12.8

Non-operating Retirement-related Loss, Net of Tax
(30.2
)
 
(21.4
)
 
(45.6
)
Costs Related to Early Retirement of Debt

 

 
(10.4
)
LTC Reserve Increase, Net of Tax

 

 
(453.8
)
UDB Reserve Increase, Net of Tax

 
(62.1
)
 

Waiver Reserve Reduction, Net of Tax

 
55.2

 

Net Income
$
888.1

 
$
847.0

 
$
402.1


 
Year Ended
 
Three Months Ended
 
Year Ended
 
Three Months Ended
 
Year Ended
 
12/31/2012
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
12/31/2013
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
12/31/2014
Operating Revenue
$
10,475.3

 
$
2,618.1

 
$
2,592.4

 
$
2,570.5

 
$
2,580.8

 
$
10,361.8

 
$
2,608.1

 
$
2,630.9

 
$
2,613.1

 
$
2,656.3

 
$
10,508.4

Net Realized Investment Gain (Loss)
56.2

 
10.3

 
13.3

 
(26.1
)
 
9.3

 
6.8

 
6.3

 
25.9

 
1.2

 
(17.3
)
 
16.1

Revenue
$
10,531.5

 
$
2,628.4

 
$
2,605.7

 
$
2,544.4

 
$
2,590.1

 
$
10,368.6

 
$
2,614.4

 
$
2,656.8

 
$
2,614.3

 
$
2,639.0

 
$
10,524.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
1,255.8

 
$
312.0

 
$
314.9

 
$
316.4

 
$
313.3

 
$
1,256.6

 
$
324.9

 
$
338.5

 
$
317.2

 
$
326.7

 
$
1,307.3

Net Realized Investment Gain (Loss)
56.2

 
10.3

 
13.3

 
(26.1
)
 
9.3

 
6.8

 
6.3

 
25.9

 
1.2

 
(17.3
)
 
16.1

Non-operating Retirement-related Loss
(46.4
)
 
(14.9
)
 
(12.9
)
 
(2.7
)
 
(2.4
)
 
(32.9
)
 
(1.4
)
 
(1.4
)
 
(1.4
)
 
(65.8
)
 
(70.0
)
Costs Related to Early Retirement of Debt

 

 

 

 

 

 

 
(13.2
)
 

 

 
(13.2
)
LTC Reserve Increase

 

 

 

 

 

 

 

 

 
(698.2
)
 
(698.2
)
UDB Reserve Increase

 

 

 

 
(95.5
)
 
(95.5
)
 

 

 

 

 

Group Life Waiver Reserve Reduction

 

 

 

 
85.0

 
85.0

 

 

 

 

 

Income (Loss) Before Income Tax
$
1,265.6

 
$
307.4

 
$
315.3

 
$
287.6

 
$
309.7

 
$
1,220.0

 
$
329.8

 
$
349.8

 
$
317.0

 
$
(454.6
)
 
$
542.0





9. 3



Unum Group Reconciliation of Non-GAAP Financial Measures - Continued

(in millions)
12/31/2011
Total Stockholders' Equity, As Reported
$
8,168.0

Net Unrealized Gain on Securities
614.8

Net Gain on Cash Flow Hedges
408.7

Total Stockholders' Equity, As Adjusted
$
7,144.5





9. 4