Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

We have three principal operating business segments: Unum US, Unum UK, and Colonial Life. Our other segments are Closed Block and Corporate.

Segment information is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2016		2015		2016		2015
	(in millions of dollars)
Premium Income
Unum US
Group Disability
Group Long-term Disability	$	432.9	$	409.4	$	863.5	$	814.7
Group Short-term Disability	156.2		151.6		313.7		299.3
Group Life and Accidental Death & Dismemberment
Group Life	348.7		336.0		700.2		671.0
Accidental Death & Dismemberment	34.9		33.3		69.5		65.9
Supplemental and Voluntary
Individual Disability	124.9		118.4		248.8		236.3
Voluntary Benefits	201.8		187.7		405.0		379.4
	1,299.4		1,236.4		2,600.7		2,466.6
Unum UK
Group Long-term Disability	95.5		99.4		188.6		195.9
Group Life	27.3		30.4		56.0		60.9
Supplemental	18.0		12.4		35.5		24.4
	140.8		142.2		280.1		281.2
Colonial Life
Accident, Sickness, and Disability	205.9		198.1		411.5		394.6
Life	67.7		63.3		135.4		125.6
Cancer and Critical Illness	77.8		74.5		155.7		147.9
	351.4		335.9		702.6		668.1
Closed Block
Individual Disability	130.5		144.3		264.1		290.8
Long-term Care	158.9		158.2		320.6		316.4
All Other	0.6		0.5		1.0		0.7
	290.0		303.0		585.7		607.9
Total Premium Income	$	2,081.6	$	2,017.5	$	4,169.1	$	4,023.8

	Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Total
	(in millions of dollars)
Three Months Ended June 30, 2016
Premium Income	$	1,299.4	$	140.8	$	351.4	$	290.0	$	—		$	2,081.6
Net Investment Income	207.7		34.0		35.6		341.1		4.9			623.3
Other Income	27.9		0.2		0.3		21.4		1.3			51.1
Operating Revenue	$	1,535.0	$	175.0	$	387.3	$	652.5	$	6.2		$	2,756.0
Operating Income (Loss)	$	227.2	$	36.9	$	77.9	$	32.6	$	(35.7	)	$	338.9
Three Months Ended June 30, 2015
Premium Income	$	1,236.4	$	142.2	$	335.9	$	303.0	$	—		$	2,017.5
Net Investment Income	215.7		38.6		36.9		331.7		7.8			630.7
Other Income	31.4		—		—		22.8		0.5			54.7
Operating Revenue	$	1,483.5	$	180.8	$	372.8	$	657.5	$	8.3		$	2,702.9
Operating Income (Loss)	$	202.8	$	38.3	$	77.6	$	36.6	$	(33.4	)	$	321.9

	Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Total
	(in millions of dollars)
Six Months Ended June 30, 2016
Premium Income	$	2,600.7	$	280.1	$	702.6	$	585.7	$	—		$	4,169.1
Net Investment Income	415.1		60.8		69.6		674.5		9.7			1,229.7
Other Income	56.9		0.2		0.6		43.8		1.6			103.1
Operating Revenue	$	3,072.7	$	341.1	$	772.8	$	1,304.0	$	11.3		$	5,501.9
Operating Income (Loss)	$	443.1	$	70.5	$	155.3	$	66.3	$	(67.5	)	$	667.7
Six Months Ended June 30, 2015
Premium Income	$	2,466.6	$	281.2	$	668.1	$	607.9	$	—		$	4,023.8
Net Investment Income	430.7		62.1		73.9		652.1		13.9			1,232.7
Other Income	62.3		—		—		46.0		0.8			109.1
Operating Revenue	$	2,959.6	$	343.3	$	742.0	$	1,306.0	$	14.7		$	5,365.6
Operating Income (Loss)	$	417.1	$	70.9	$	155.2	$	63.3	$	(63.3	)	$	643.2

	June 30		December 31
	2016		2015
	(in millions of dollars)
Assets
Unum US	$	18,310.8	$	18,242.4
Unum UK	3,325.2		3,432.4
Colonial Life	3,874.2		3,776.8
Closed Block	34,559.8		33,000.9
Corporate	3,783.1		2,111.1
Total Assets	$	63,853.1	$	60,563.6

We measure and analyze our segment performance on the basis of "operating revenue" and "operating income" or "operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and non-operating retirement-related gains or losses as specified in the reconciliations below. We believe operating revenue and operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income. 

Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses. Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities.

The amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pensions and other postretirement benefit plans, is driven by market performance as well as plan amendments and is not indicative of the operational results of our businesses. We believe that excluding the amortization of prior period gains or losses from operating income or loss provides investors with additional information for comparison and analysis of our operating results. Although we manage our non-operating retirement-related gains or losses separately from the operational performance of our business, these gains or losses impact the overall profitability of our company and have historically increased or decreased over time, depending on plan amendments and market conditions and the resulting impact on the actuarial gains or losses in our pensions and other postretirement benefit plans.

A reconciliation of total revenue to "operating revenue" and income before income tax to "operating income" is as follows:

	Three Months Ended June 30						Six Months Ended June 30
	2016			2015			2016			2015
	(in millions of dollars)
Total Revenue	$	2,761.3		$	2,703.7		$	5,486.7		$	5,351.1
Excluding:
Net Realized Investment Gain (Loss)	5.3			0.8			(15.2		)	(14.5		)
Operating Revenue	$	2,756.0		$	2,702.9		$	5,501.9		$	5,365.6
Income Before Income Tax	$	340.2		$	319.8		$	644.4		$	622.8
Excluding:
Net Realized Investment Gain (Loss)	5.3			0.8			(15.2		)	(14.5		)
Non-operating Retirement-related Loss	(4.0		)	(2.9		)	(8.1		)	(5.9		)
Operating Income	$	338.9		$	321.9		$	667.7		$	643.2