0000005513-17-000069.txt : 20170727 0000005513-17-000069.hdr.sgml : 20170727 20170727163638 ACCESSION NUMBER: 0000005513-17-000069 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20170727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170727 DATE AS OF CHANGE: 20170727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Unum Group CENTRAL INDEX KEY: 0000005513 STANDARD INDUSTRIAL CLASSIFICATION: ACCIDENT & HEALTH INSURANCE [6321] IRS NUMBER: 621598430 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11294 FILM NUMBER: 17986742 BUSINESS ADDRESS: STREET 1: 1 FOUNTAIN SQUARE CITY: CHATTANOOGA STATE: TN ZIP: 37402 BUSINESS PHONE: 423-294-1011 MAIL ADDRESS: STREET 1: 1 FOUNTAIN SQUARE CITY: CHATTANOOGA STATE: TN ZIP: 37402 FORMER COMPANY: FORMER CONFORMED NAME: UNUMPROVIDENT CORP DATE OF NAME CHANGE: 19990702 FORMER COMPANY: FORMER CONFORMED NAME: PROVIDENT COMPANIES INC /DE/ DATE OF NAME CHANGE: 19961204 FORMER COMPANY: FORMER CONFORMED NAME: PROVIDENT LIFE & ACCIDENT INSURANCE CO OF AMERICA DATE OF NAME CHANGE: 19950407 8-K 1 unm063020178-kcover.htm 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K


Current Report
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): July 27, 2017
 
 
 
 
 
 
 
 
 
 
UNUM GROUP
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
 
 
Delaware
 
001-11294
 
62-1598430 
(State or other jurisdiction of incorporation)
 
 (Commission File Number)
 
(IRS Employer Identification No.)


1 Fountain Square
Chattanooga, Tennessee 37402
(Address of principal executive offices) (Zip Code)


(423) 294-1011
(Registrant's telephone number, including area code)


Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))









Item 2.02
Results of Operations and Financial Condition.
On July 27, 2017, Unum Group issued a news release reporting its results for the second quarter of 2017, a copy of which is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Also on July 27, 2017, Unum Group posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the second quarter of 2017. A copy of the Statistical Supplement is furnished herewith as Exhibit 99.2 and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any of Unum Group's filings under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are furnished (but not filed) with this report:
 
 
99.1
News release of Unum Group dated July 27, 2017, concerning earnings for the second quarter of 2017.
 
 
99.2
Statistical Supplement of Unum Group for the second quarter of 2017.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Unum Group
 
(Registrant)
 
 
 
 
 
 
July 27, 2017
By:
 /s/ J. Paul Jullienne
 
 
Name:
J. Paul Jullienne
 
 
Title:
Vice President, Managing Counsel, and
 
 
 
Corporate Secretary
 
 
 
 







INDEX TO EXHIBITS

Exhibit No.
Description
 
 
99.1
News release of Unum Group dated July 27, 2017, concerning earnings for the second quarter of 2017.
 
 
99.2
Statistical Supplement of Unum Group for the second quarter of 2017.



EX-99.1 2 unm06302017exhibit991.htm EXHIBIT 99.1 Exhibit
imagea2q17.jpg
 
Exhibit 99.1
 
1 Fountain Square
 
Chattanooga, TN 37402
 
www.unum.com

 
FOR IMMEDIATE RELEASE
 
 
 
 
news
Contacts
 
 
INVESTORS
Tom White
423 294 8996
 
Matt Barnett
423 294 7498
 
 
 
MEDIA
Jim Sabourin
423 294 6300
 
 
 
 

Unum Group Reports Second Quarter 2017 Results

CHATTANOOGA, Tenn. (July 27, 2017) - Unum Group (NYSE: UNM) today reported net income of $245.1 million ($1.07 per diluted common share) for the second quarter of 2017, compared to net income of $236.8 million ($1.00 per diluted common share) for the second quarter of 2016.
After-tax operating income, which excludes net after-tax realized investment gains and losses on the Company’s investment portfolio, was $240.4 million ($1.05 per diluted common share) in the second quarter of 2017, compared to $233.0 million ($0.98 per diluted common share) in the second quarter of 2016. Net after-tax realized investment gains were $4.7 million ($0.02 per diluted common share) in the second quarter of 2017, compared to $3.8 million ($0.02 per diluted common share) in the second quarter of 2016.
“Our second quarter results were very strong, with a good balance of top line growth, solid earnings growth, and return of capital to shareholders,” said Richard P. McKenney, president and chief executive officer.  “The disciplined execution of our strategy in serving our customers continues to drive strong and consistent operating trends, highlighted by good sales and premium growth, stable benefits experience, and well-managed expenses.”

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
 


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RESULTS BY SEGMENT
We measure and analyze our segment performance on the basis of "operating income" or "operating loss", which differ from income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for income before income tax or net income.
Unum US Segment    
Unum US reported operating income of $247.8 million in the second quarter of 2017, an increase of 9.1 percent from $227.2 million in the second quarter of 2016. Premium income for the segment increased 4.5 percent to $1,357.7 million in the second quarter of 2017, compared to premium income of $1,299.4 million in the second quarter of 2016. Net investment income for the segment was $205.6 million in the second quarter of 2017, compared to $207.7 million in the second quarter of 2016.
Within the Unum US operating segment, the group disability line of business reported a 24.2 percent increase in operating income to $92.4 million in the second quarter of 2017, compared to $74.4 million in the second quarter of 2016. Premium income in group disability increased 1.2 percent to $596.0 million in the second quarter of 2017, compared to $589.1 million in the second quarter of 2016, primarily due to prior period sales growth, partially offset by a decline in persistency. Net investment income declined by 1.4 percent to $118.1 million in the second quarter of 2017, compared to $119.8 million in the second quarter of 2016, due to a decrease in the level of invested assets and a decline in portfolio yield, partially offset by higher miscellaneous income. The benefit ratio for the second quarter of 2017 was 76.5 percent, compared to 80.0 percent in the second quarter of 2016, reflecting lower claim incidence rates in our group long-term disability product line, lower prevalence rates in our group short-term disability product line, and the impact of rate increases on the in-force block for our group long-term disability product line. Partially offsetting these positive trends was the 50 basis point reduction in the discount rate used for new claim incurrals for the group long-term disability line of business implemented in the fourth quarter of 2016. Group long-term disability sales were $47.5 million in the second quarter of 2017, compared to $48.3 million in the second quarter of 2016. Group short-term disability sales were $27.4 million in the second quarter of 2017, compared to $24.9 million in the second quarter of 2016. Persistency in the group long-term disability line of business was 89.3 percent for the first half of 2017, compared to 90.3 percent for the first half of 2016. Persistency in the group short-term disability line of business was 85.7 percent for the first half of 2017, compared to 87.0 percent for the first half of 2016.
The group life and accidental death and dismemberment line of business reported operating income of $60.9 million in the second quarter of 2017, an increase of 7.0 percent from $56.9 million in the second quarter of 2016. Premium income for this line of business increased 4.4 percent to $400.6 million in the second quarter of 2017, compared to $383.6 million in the second quarter of 2016, primarily due to prior period sales growth, partially offset by a decline in persistency. Net investment income declined 3.8 percent to $27.8 million in the second quarter of 2017, compared to $28.9 million in the second quarter of 2016, primarily due to a decline in

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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yield and a decline in the level of invested assets supporting this line of business, partially offset by an increase in miscellaneous income. The benefit ratio in the second quarter of 2017 was 70.6 percent, compared to 71.5 percent in the second quarter of 2016, reflecting a lower average claim size in the group life product line. Sales of group life and accidental death and dismemberment products increased 7.6 percent in the second quarter of 2017 to $59.5 million, compared to $55.3 million in the second quarter of 2016. Persistency in the group life line of business was 87.7 percent for the first half of 2017, compared to 90.0 percent for the first half of 2016.
The supplemental and voluntary line of business reported a decline of 1.5 percent in operating income to $94.5 million in the second quarter of 2017, compared to $95.9 million in the second quarter of 2016. Premium income for supplemental and voluntary increased 10.5 percent to $361.1 million in the second quarter of 2017, compared to $326.7 million in the second quarter of 2016. This increase was driven by the addition of the dental and vision product offering resulting from an acquisition in August 2016, as well as growth in the in-force block of individual disability and voluntary benefits products due to sales growth. Somewhat offsetting this growth was the impact of a reinsurance transaction executed in the fourth quarter of 2016 to cede a portion of the individual disability product line. Net investment income increased slightly to $59.7 million in the second quarter of 2017, compared to $59.0 million in the second quarter of 2016, due to an increase in the level of invested assets and miscellaneous income, partially offset by a decline in yield. The benefit ratio for the individual disability product line was 51.2 percent for the second quarter of 2017, compared to 53.8 percent for the second quarter of 2016, reflecting lower new claims in the current quarter, partially offset by the impact of the reinsurance agreement. The benefit ratio for voluntary benefits was 43.4 percent in the second quarter of 2017, compared to 42.4 percent in the second quarter of 2016, primarily driven by less favorable benefits experience in the life product line. The benefit ratio for dental and vision was 72.3 percent for the second quarter of 2017. Relative to the second quarter of 2016, sales in the individual disability line of business declined 6.8 percent in the second quarter of 2017 to $13.6 million. Sales in the voluntary benefits line of business increased 10.7 percent in the second quarter of 2017 to $49.6 million. Sales in the dental and vision line totaled $10.4 million for the second quarter of 2017. Persistency in the individual disability product line was 91.0 percent for the first half of 2017, compared to 91.3 percent for the first half of 2016. Persistency in the voluntary benefits product line was 76.2 percent for the first half of 2017, compared to 76.7 percent for the first half of 2016. Persistency in the dental and vision product line was 82.0 percent in the first half of 2017.
Unum UK Segment
Unum UK reported operating income of $28.9 million in the second quarter of 2017, a decline of 21.7 percent from $36.9 million in the second quarter of 2016. In local currency, operating income declined by 12.1 percent to £22.6 million in the second quarter of 2017, compared to £25.7 million in the second quarter of 2016.
Premium income declined by 9.9 percent to $126.8 million in the second quarter of 2017, compared to $140.8 million in the second quarter of 2016. In local currency, premium income was £99.1 million in the second quarter of 2017, an increase of 1.0 percent from £98.1 million in the second quarter of 2016, primarily driven by growth in the group life and supplemental lines of business due to favorable persistency and sales

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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growth, partially offset by lower persistency in the long-term disability product line. Net investment income was $33.2 million in the second quarter of 2017, compared to $34.0 million in the second quarter of 2016. In local currency, net investment income increased 9.7 percent to £26.0 million in the second quarter of 2017, compared to £23.7 million in the second quarter of 2016, primarily due to higher income from inflation index-linked bonds which support the claim reserves associated with certain group policies that provide inflation-linked increases in benefits and growth in the level of invested assets, partially offset by a decline in yield on fixed-rate bonds. The benefit ratio in the second quarter of 2017 was 75.6 percent, compared to 70.1 percent in the second quarter of 2016, reflecting the impact from inflation-linked increases in benefits and unfavorable claim resolutions, partially offset by favorable claims activity in the group life product line. Also contributing to the less favorable benefits experience was a reduction of 80 basis points in the discount rate implemented in the first quarter of 2017 across several of our products.
Sales increased by 9.6 percent to $25.2 million in the second quarter of 2017, compared to $23.0 million in the second quarter of 2016. In local currency, sales for the second quarter of 2017 increased by 23.8 percent to £19.8 million. Persistency in the group long-term disability line of business was 86.4 percent for the first half of 2017, compared to 87.8 percent for the first half of 2016. Persistency in the group life line of business was 80.8 percent for the first half of 2017, compared to 78.8 percent for the first half of 2016. Persistency in the supplemental line of business was 91.3 percent for the first half of 2017 compared to 89.4 percent for the first half of 2016.
Colonial Life Segment
Colonial Life reported a 5.0 percent increase in operating income to $81.8 million in the second quarter of 2017, compared to $77.9 million in the second quarter of 2016.
Premium income for the second quarter of 2017 increased 7.1 percent to $376.3 million, compared to $351.4 million in the second quarter of 2016, driven by sales growth in recent quarters and stable persistency. Net investment income increased 3.1 percent to $36.7 million in the second quarter of 2017, compared to $35.6 million in the second quarter of 2016. The benefit ratio in the second quarter of 2017 was 51.3 percent, compared to 51.1 percent in the second quarter of 2016, reflecting favorable benefits experience in the life and cancer and critical illness lines of business, which offset slightly less favorable experience in the accident, sickness, and disability line of business.
Sales increased 7.5 percent to $116.6 million in the second quarter of 2017 from $108.5 million in the second quarter of 2016, driven by strong sales trends in the core commercial market segment. Persistency in Colonial Life was 78.7 percent for the first half of 2017 compared to 78.5 percent for the first half of 2016.
Closed Block Segment
The Closed Block segment reported operating income of $32.6 million in both the second quarters of 2017 and 2016.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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Premium income for this segment declined 3.0 percent in the second quarter of 2017 compared to the second quarter of 2016, primarily due to expected policy terminations and maturities for the individual disability line of business which was partially offset by an increase in premium income for the long-term care line of business resulting from premium rate increases on certain in-force policies. Net investment income declined 0.3 percent to $340.0 million in the second quarter of 2017, compared to $341.1 million in the second quarter of 2016, due to a decline in yield and lower miscellaneous income, which was partially offset by an increase in the level of invested assets. The interest adjusted loss ratio for the individual disability line of business declined to 82.3 percent in the second quarter of 2017, compared to 84.3 percent in the second quarter of 2016, due to a prior period reduction in the claim reserve discount rate to recognize the impact on future portfolio yields from increased levels of bond tenders and calls. The interest adjusted loss ratio for the long-term care line of business was 89.4 percent in the second quarter of 2017 compared to 92.6 percent in the second quarter of 2016, primarily driven by lower claims incidence.
Corporate Segment
The Corporate segment reported an operating loss of $37.6 million for the second quarter of 2017, compared to an operating loss of $39.7 million in the second quarter of 2016.
The Company previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for the Company’s pension and other postretirement benefit plans, from the results of the Corporate segment. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in the Corporate segment and amounts for prior periods have been adjusted to conform to current year reporting.
OTHER INFORMATION
Shares Outstanding
The Company’s weighted average number of shares outstanding, assuming dilution, was 228.2 million for the second quarter of 2017, compared to 237.3 million for the second quarter of 2016. Shares outstanding totaled 226.1 million at June 30, 2017. During the second quarter of 2017, the Company repurchased approximately 2.2 million shares at a cost of approximately $100 million.
Capital Management
At June 30, 2017, the weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies was in excess of 395 percent and cash and marketable securities in the holding companies equaled $757 million, excluding amounts committed for subsidiary contributions.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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Book Value
Book value per common share as of June 30, 2017 was $41.21, compared to $38.96 at June 30, 2016.
Outlook
The Company’s expectation for after-tax operating income growth per share for full-year 2017 is increased to be within a range of five percent to eight percent, from the previous range of three percent to six percent.
NON-GAAP FINANCIAL MEASURES
We analyze our performance using non-GAAP financial measures.  A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.  The non-GAAP financial measure of "after-tax operating income" differs from net income as presented in our consolidated operating results and income statements prepared in accordance with GAAP due to the exclusion of net realized investment gains and losses as specified in the reconciliations in the Financial Highlights section below.  We believe operating income is a better performance measure and better indicator of the profitability and underlying trends in our business. 
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.
We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now included in "after-tax operating income" in the Financial Highlights section below. Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting. 
We may at other times 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 net income or net loss as a measure of our overall profitability.
Information reconciling the Company’s outlook on after-tax operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax operating income are those described in the preceding paragraphs. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects,

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio.
CONFERENCE CALL INFORMATION
Members of Unum Group senior management will host a conference call on Friday, July 28, at 8:00 a.m. (Eastern Time) to discuss the results of operations for the second quarter. Topics may include forward-looking information, such as the Company’s outlook on future results, trends in operations, and other material information.
The dial-in number for the conference call is (888) 203-7337 for U.S. and Canada (pass code 6920872). For international, the dial-in number is (719) 457-2619 (pass code 6920872). A live webcast of the call will also be available at www.investors.unum.com in a listen-only mode. It is recommended that webcast viewers access the “Investors” section of the Company’s website and opt-in to the webcast approximately 5-10 minutes prior to the start of the call. The Company will maintain a replay of the call on its website through Friday, August 4. A replay of the call will also be available by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International) - pass code 6920872.
In conjunction with today’s earnings announcement, the Company’s Statistical Supplement for the second quarter of 2017 is available on the “Investors” section of the Company’s website.
# # #
ABOUT UNUM GROUP
Unum (www.unum.com) is one of the leading providers of employee benefits products and services and the largest provider of disability insurance products in the United States and the United Kingdom.
SAFE HARBOR STATEMENT
Certain information in this press release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those not based on historical information, but rather relate to our outlook, future operations, strategies, financial results, or other developments and speak only as of the date made. These forward-looking statements, including statements about anticipated growth in after-tax operating income per share, are subject to numerous assumptions, risks, and uncertainties, many of which are beyond our control. The following factors, in addition to other factors mentioned from time to time, may cause actual results to differ materially from those contemplated by the forward-looking statements: (1) sustained periods of low interest rates; (2) fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets due to, among other factors, the rate of unemployment and consumer confidence, the emergence of new diseases, epidemics, or pandemics, new trends and developments in medical treatments, the effectiveness of our claims operational processes, and changes in government programs; (3) unfavorable economic or business conditions, both domestic and foreign; (4) legislative, regulatory, or tax changes, both domestic and foreign, including the effect of potential legislation and increased regulation in the current political environment; (5) investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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liabilities; (6) a cyber attack or other security breach could result in the unauthorized acquisition of confidential data; (7) the failure of our business recovery and incident management processes to resume our business operations in the event of a natural catastrophe, cyber attack, or other event; (8) increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors; (9) execution risk related to our technology needs; (10) changes in our financial strength and credit ratings; (11) damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures; (12) actual experience that deviates from our assumptions used in pricing, underwriting, and reserving; (13) actual persistency and/or sales growth that is higher or lower than projected; (14) changes in demand for our products due to, among other factors, changes in societal attitudes, the rate of unemployment, consumer confidence, and/or legislative and regulatory changes, including healthcare reform; (15) effectiveness of our risk management program; (16) contingencies and the level and results of litigation; (17) availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us; (18) ineffectiveness of our derivatives hedging programs due to changes in the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation; (19) changes in accounting standards, practices, or policies; (20) fluctuation in foreign currency exchange rates; (21) ability to generate sufficient internal liquidity and/or obtain external financing; (22) recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets; and (23) terrorism, both within the U.S. and abroad, ongoing military actions, and heightened security measures in response to these types of threats.
For further discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Part 1, Item 1A “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2016, and, to the extent applicable, our subsequent quarterly reports on Form 10-Q. The forward-looking statements in this press release are being made as of the date of this press release, and the Company expressly disclaims any obligation to update or revise any forward-looking statement contained herein, even if made available on our website or otherwise.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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Unum Group
FINANCIAL HIGHLIGHTS
(Unaudited)

($ in millions, except share data)
 
 
 
 
 
 
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2017
 
2016
 
2017
 
2016
Revenue
 
 
 
 
 
 
 
Premium Income
$
2,142.2

 
$
2,081.6

 
$
4,285.1

 
$
4,169.1

Net Investment Income
620.5

 
623.3

 
1,222.9

 
1,229.7

Net Realized Investment Gain (Loss)
8.1

 
5.3

 
19.1

 
(15.2
)
Other Income
51.2

 
51.1

 
101.4

 
103.1

Total Revenue
2,822.0

 
2,761.3

 
5,628.5

 
5,486.7

 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
1,752.0

 
1,733.5

 
3,501.0

 
3,463.3

Commissions
261.3

 
255.0

 
531.5

 
514.9

Interest and Debt Expense
39.9

 
42.4

 
79.7

 
81.0

Deferral of Acquisition Costs
(153.2
)
 
(146.7
)
 
(315.3
)
 
(299.2
)
Amortization of Deferred Acquisition Costs
138.3

 
126.2

 
279.8

 
258.4

Other Expenses
422.1

 
410.7

 
859.9

 
823.9

Total Benefits and Expenses
2,460.4

 
2,421.1

 
4,936.6

 
4,842.3

 
 
 
 
 
 
 
 
Income Before Income Tax
361.6

 
340.2

 
691.9

 
644.4

Income Tax
116.5

 
103.4

 
216.9

 
197.0

 
 
 
 
 
 
 
 
Net Income
$
245.1

 
$
236.8

 
$
475.0

 
$
447.4

 
 
 
 
 
 
 
 
PER SHARE INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income Per Common Share
 
 
 
 
 
 
 
Basic
$
1.08

 
$
1.00

 
$
2.08

 
$
1.88

Assuming Dilution
$
1.07

 
$
1.00

 
$
2.07

 
$
1.87

 
 
 
 
 
 
 
 
Weighted Average Common Shares - Basic (000s)
227,454.4

 
236,892.8

 
228,437.0

 
238,254.3

Weighted Average Common Shares - Assuming Dilution (000s)
228,178.7

 
237,318.8

 
229,273.8

 
238,622.8

Outstanding Shares - (000s)
 
 
 
 
226,102.1

 
235,011.3


UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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Reconciliation of Non-GAAP Financial Measures
 
Three Months Ended June 30
 
2017
 
2016
 
(in millions)
 
per share *
 
(in millions)
 
per share *
Net Income
$
245.1

 
$
1.07

 
$
236.8

 
$
1.00

Excluding:
 
 
 
 
 
 
 
Net Realized Investment Gain (net of tax expense of $3.4; $1.5)
4.7

 
0.02

 
3.8

 
0.02

After-tax Operating Income
$
240.4

 
$
1.05

 
$
233.0

 
$
0.98

 
 
 
 
 
 
 
 
* Assuming Dilution
 
 
 
 
 
 
 

 
June 30
 
2017
 
2016
 
(in millions)
 
per share
 
(in millions)
 
per share
Total Stockholders' Equity (Book Value)
$
9,316.6

 
$
41.21

 
$
9,157.0

 
$
38.96

Excluding:
 
 
 
 
 
 
 
Net Unrealized Gain on Securities
558.2

 
2.47

 
661.1

 
2.81

Net Gain on Cash Flow Hedges
304.5

 
1.35

 
343.6

 
1.46

Subtotal
8,453.9

 
37.39

 
8,152.3

 
34.69

Excluding:
 
 
 
 
 
 
 
Foreign Currency Translation Adjustment
(297.1
)
 
(1.31
)
 
(279.4
)
 
(1.19
)
Subtotal
8,751.0

 
38.70

 
8,431.7

 
35.88

Excluding:
 
 
 
 
 
 
 
Unrecognized Pension and Postretirement Benefit Costs
(460.7
)
 
(2.04
)
 
(385.5
)
 
(1.64
)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income
$
9,211.7

 
$
40.74

 
$
8,817.2

 
$
37.52


UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
10
EX-99.2 3 unm06302017exhibit992.htm EXHIBIT 99.2 Exhibit


cover2q17.jpg




Unum Group
Statistical Supplement Second Quarter 2017

 TABLE OF CONTENTS
(in millions of dollars, except share data and where noted)
Interim Results are Unaudited

 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.1 for a reconciliation of our non-GAAP financial measures.
 
 
 
 
N.M. = not a meaningful percentage




Unum Group Financial Highlights
 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Consolidated U.S. GAAP Results1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
$
2,142.2

 
$
2,081.6

 
$
4,285.1

 
$
4,169.1

 
$
8,357.7

 
$
8,082.4

 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenue
$
2,813.9

 
$
2,756.0

 
$
5,609.4

 
$
5,501.9

 
$
11,022.3

 
$
10,775.1

Net Realized Investment Gain (Loss)
8.1

 
5.3

 
19.1

 
(15.2
)
 
24.2

 
(43.8
)
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
2,822.0

 
$
2,761.3

 
$
5,628.5

 
$
5,486.7

 
$
11,046.5

 
$
10,731.3

 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
245.1

 
$
236.8

 
$
475.0

 
$
447.4

 
$
931.4

 
$
867.1

Net Income Per Common Share:
 
 
 
 
 
 
 
 
 
 
 
Basic
$
1.08

 
$
1.00

 
$
2.08

 
$
1.88

 
$
3.96

 
$
3.51

Assuming Dilution
$
1.07

 
$
1.00

 
$
2.07

 
$
1.87

 
$
3.95

 
$
3.50

 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 

 
$
63,381.6

 
$
63,853.1

 
$
61,941.5

 
$
60,563.6

Stockholders' Equity
 
 
 
 
$
9,316.6

 
$
9,157.0

 
$
8,968.0

 
$
8,663.9

 
 
 
 
 
 
 
 
 
 
 
 
Operating Return on Equity2
 
 
 
 
 
 
 
 
 
 
 
Unum US
15.9
%
 
15.1
%
 
15.6
%
 
14.7
%
 
15.0
%
 
13.3
%
Unum UK
15.5
%
 
20.9
%
 
15.5
%
 
19.6
%
 
18.6
%
 
18.0
%
Colonial Life
17.3
%
 
17.4
%
 
17.4
%
 
17.6
%
 
17.4
%
 
16.6
%
Core Operating Segments
16.1
%
 
16.2
%
 
16.0
%
 
15.8
%
 
15.9
%
 
14.5
%
Consolidated
11.5
%
 
11.5
%
 
11.4
%
 
11.3
%
 
11.2
%
 
11.2
%

Traditional U.S. Life Insurance Companies' Statutory Results3
 
 
 
 
 
 
 
 
 
 
 
Net Gain from Operations, After Tax
$
225.2

 
$
228.4

 
$
405.3

 
$
412.5

 
$
884.6

 
$
689.2

Net Realized Investment Gain (Loss), After Tax
(1.0
)
 
3.8

 
(0.6
)
 
(13.7
)
 
(29.5
)
 
(35.5
)
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
224.2

 
$
232.2

 
$
404.7

 
$
398.8

 
$
855.1

 
$
653.7

 
 
 
 
 
 
 
 
 
 
 
 
Capital and Surplus
 
 


 
$
3,609.5

 
$
3,495.0

 
$
3,626.9

 
$
3,470.3

 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Risk-based Capital Ratio


 
 
 
>395%

 
~390%

 
~ 400%

 
~ 400%


1 Generally Accepted Accounting Principles
2 We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in our Corporate segment.  Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting. See page 13.
3 Our traditional U.S. life insurance companies are Provident Life and Accident Insurance Company, Unum Life Insurance Company of America, The Paul Revere Life Insurance Company, Colonial Life & Accident Insurance Company, Provident Life and Casualty Insurance Company, First Unum Life Insurance Company, Unum Insurance Company, and Starmount Life Insurance Company.

1



Unum Group Capital Metrics

 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
 
(in millions)
 
per share
 
(in millions)
 
per share
 
(in millions)
 
per share
 
(in millions)
 
per share
Total Stockholders' Equity (Book Value)
$
9,316.6

 
$
41.21

 
$
9,157.0

 
$
38.96

 
$
8,968.0

 
$
39.02

 
$
8,663.9

 
$
35.96

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Unrealized Gain on Securities
558.2

 
2.47

 
661.1

 
2.81

 
440.6

 
1.92

 
204.3

 
0.84

Net Gain on Cash Flow Hedges
304.5

 
1.35

 
343.6

 
1.46

 
327.5

 
1.42

 
378.0

 
1.57

Subtotal
8,453.9

 
37.39

 
8,152.3

 
34.69

 
8,199.9

 
35.68

 
8,081.6

 
33.55

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Translation Adjustment
(297.1
)
 
(1.31
)
 
(279.4
)
 
(1.19
)
 
(354.0
)
 
(1.54
)
 
(173.6
)
 
(0.72
)
Subtotal
8,751.0

 
38.70

 
8,431.7

 
35.88

 
8,553.9

 
37.22

 
8,255.2

 
34.27

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized Pension and Postretirement Benefit Costs
(460.7
)
 
(2.04
)
 
(385.5
)
 
(1.64
)
 
(465.1
)
 
(2.02
)
 
(392.6
)
 
(1.63
)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)
$
9,211.7

 
$
40.74

 
$
8,817.2

 
$
37.52

 
$
9,019.0

 
$
39.24

 
$
8,647.8

 
$
35.90

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Paid
$
92.3

 
$
0.40

 
$
89.4

 
$
0.37

 
$
182.6

 
$
0.77

 
$
174.2

 
$
0.70


 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Shares Repurchased (millions)
2.2

 
2.8

 
4.3

 
6.5

 
11.9

 
12.3

Cost of Shares Repurchased (millions)(1)
$
100.1

 
$
100.1

 
$
200.1

 
$
200.1

 
$
403.3

 
$
426.7

Price (UNM closing price on last trading day of period)


 


 
$
46.57

 
$
31.79

 
$
43.93

 
$
33.29

 
 
 
 
 
 
 
 
 
 
 
 
Leverage Ratio


 


 
26.6
%
 
29.8
%
 
27.2
%
 
25.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Holding Company Cash and Marketable Securities(2)


 


 
$
757

 
$
600

 
$
594

 
$
475


(1) Includes commissions of $0.1 million for the three and six month periods ended June 30, 2017 and 2016, and $0.2 million and $0.3 million for the years ended December 31, 2016 and 2015, respectively.
(2) Excludes amounts committed for subsidiary contributions.

2



Unum Group Ratings


 
AM Best
 
Fitch
 
Moody's
 
S&P
Outlook
Stable
 
Stable
 
Stable
 
Stable
 
 
 
 
 
 
 
 
Issuer Credit Ratings
bbb
 
BBB
 
Baa2
 
BBB
 
 
 
 
 
 
 
 
Financial Strength Ratings
 
 
 
 
 
 
 
    Provident Life and Accident Insurance Company
A
 
A
 
A2
 
A
    Unum Life Insurance Company of America
A
 
A
 
A2
 
A
    Colonial Life & Accident Insurance Company
A
 
A
 
A2
 
A
    The Paul Revere Life Insurance Company
A
 
A
 
A2
 
A
    Starmount Life Insurance Company
A-
 
NR
 
NR
 
NR
    Unum Insurance Company
A-
 
A
 
A2
 
NR
    Unum Limited
NR
 
NR
 
NR
 
A-

NR = not rated

3



Unum Group Consolidated Statements of Income

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
$
2,142.2

 
$
2,081.6

 
$
4,285.1

 
$
4,169.1

 
$
8,357.7

 
$
8,082.4

Net Investment Income
620.5

 
623.3

 
1,222.9

 
1,229.7

 
2,459.0

 
2,481.2

Net Realized Investment Gain (Loss)
8.1

 
5.3

 
19.1

 
(15.2
)
 
24.2

 
(43.8
)
Other Income
51.2

 
51.1

 
101.4

 
103.1

 
205.6

 
211.5

Total Revenue
2,822.0

 
2,761.3


5,628.5

 
5,486.7

 
11,046.5

 
10,731.3

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
1,752.0

 
1,733.5

 
3,501.0

 
3,463.3

 
6,941.8

 
6,782.8

Commissions
261.3

 
255.0

 
531.5

 
514.9

 
1,026.7

 
996.3

Interest and Debt Expense - Non-recourse Debt
1.7

 
1.7

 
3.4

 
3.4

 
6.9

 
6.6

Interest and Debt Expense - All Other Debt
38.2

 
40.7

 
76.3

 
77.6

 
159.1

 
146.2

Deferral of Acquisition Costs
(153.2
)
 
(146.7
)
 
(315.3
)
 
(299.2
)
 
(592.4
)
 
(569.7
)
Amortization of Deferred Acquisition Costs
138.3

 
126.2

 
279.8

 
258.4

 
493.0

 
482.3

Other Expenses
422.1

 
410.7

 
859.9

 
823.9

 
1,663.7

 
1,648.5

Total Benefits and Expenses
2,460.4

 
2,421.1


4,936.6

 
4,842.3

 
9,698.8

 
9,493.0

 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Tax
361.6

 
340.2


691.9

 
644.4

 
1,347.7

 
1,238.3

Income Tax Expense
116.5

 
103.4

 
216.9

 
197.0

 
416.3

 
371.2

 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
245.1

 
$
236.8


$
475.0

 
$
447.4

 
$
931.4

 
$
867.1

 
 

 
 
 
 
 
 
 
 
 
Average Weighted Shares Outstanding
 
 
 
 
 
 
 
 
 
 
 
Basic
227.5

 
236.9

 
228.4

 
238.3

 
235.4

 
247.0

Assuming Dilution
228.2

 
237.3

 
229.3

 
238.6

 
236.0

 
247.9

 
 
 
 
 
 
 
 
 
 
 
 
Actual Number of Shares Outstanding


 


 
226.1

 
235.0

 
229.8

 
240.9


4



Unum Group Sales Data for Unum US Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
% Change
 
6/30/2017
 
6/30/2016
 
% Change
 
12/31/2016
 
12/31/2015
Sales by Product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Disability and Group Life and AD&D
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
47.5

 
$
48.3

 
(1.7
)%
 
$
83.5

 
$
85.8

 
(2.7
)%
 
$
217.8

 
$
239.7

Group Short-term Disability
27.4

 
24.9

 
10.0

 
44.3

 
41.1

 
7.8

 
114.6

 
119.7

Group Life and AD&D
59.5

 
55.3

 
7.6

 
96.7

 
96.1

 
0.6

 
270.1

 
250.1

Subtotal
134.4

 
128.5

 
4.6

 
224.5

 
223.0

 
0.7

 
602.5

 
609.5

Supplemental and Voluntary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
13.6

 
14.6

 
(6.8
)
 
29.8

 
31.3

 
(4.8
)
 
65.1

 
67.5

Voluntary Benefits
49.6

 
44.8

 
10.7

 
196.9

 
170.7

 
15.3

 
261.7

 
262.6

Dental and Vision
10.4

 

 

 
20.3

 

 

 
14.5

 

Subtotal
73.6

 
59.4

 
23.9

 
247.0

 
202.0

 
22.3

 
341.3

 
330.1

Total Sales
$
208.0

 
$
187.9

 
10.7

 
$
471.5

 
$
425.0

 
10.9

 
$
943.8

 
$
939.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Disability and Group Life and AD&D
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Market (< 2,000 employees)
$
90.3

 
$
85.4

 
5.7
 %
 
$
146.6

 
$
143.6

 
2.1
 %
 
$
378.1

 
$
405.4

Large Case Market
44.1

 
43.1

 
2.3

 
77.9

 
79.4

 
(1.9
)
 
224.4

 
204.1

Subtotal
134.4

 
128.5

 
4.6

 
224.5

 
223.0

 
0.7

 
602.5

 
609.5

Supplemental and Voluntary
73.6

 
59.4

 
23.9

 
247.0

 
202.0

 
22.3

 
341.3

 
330.1

Total Sales
$
208.0

 
$
187.9

 
10.7

 
$
471.5

 
$
425.0

 
10.9

 
$
943.8

 
$
939.6


5



Unum Group Sales Data for Unum UK Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
(in millions of dollars)
6/30/2017
 
6/30/2016
 
% Change
 
6/30/2017
 
6/30/2016
 
% Change
 
12/31/2016
 
12/31/2015
Sales by Product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
11.5

 
$
14.6

 
(21.2
)%
 
$
25.0

 
$
24.8

 
0.8
 %
 
$
50.2

 
$
53.4

Group Life
6.0

 
5.4

 
11.1

 
9.9

 
10.1

 
(2.0
)
 
23.8

 
25.7

Supplemental
7.7

 
3.0

 
156.7

 
10.0

 
6.5

 
53.8

 
10.5

 
5.0

Total Sales
$
25.2

 
$
23.0

 
9.6

 
$
44.9

 
$
41.4

 
8.5

 
$
84.5

 
$
84.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability and Group Life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Market (< 500 employees)
$
9.1

 
$
11.3

 
(19.5
)%
 
$
15.5

 
$
19.7

 
(21.3
)%
 
$
42.0

 
$
44.3

Large Case Market
8.4

 
8.7

 
(3.4
)
 
19.4

 
15.2

 
27.6

 
32.0

 
34.8

Subtotal
17.5

 
20.0

 
(12.5
)
 
34.9

 
34.9

 

 
74.0

 
79.1

Supplemental
7.7

 
3.0

 
156.7

 
10.0

 
6.5

 
53.8

 
10.5

 
5.0

Total Sales
$
25.2

 
$
23.0

 
9.6

 
$
44.9

 
$
41.4

 
8.5

 
$
84.5

 
$
84.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions of pounds)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales by Product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
£
9.0

 
£
10.2

 
(11.8
)%
 
£
19.9

 
£
17.3

 
15.0
 %
 
£
37.2

 
£
35.0

Group Life
4.7

 
3.8

 
23.7

 
7.8

 
7.0

 
11.4

 
17.8

 
16.8

Supplemental
6.1

 
2.0

 
N.M.

 
8.0

 
4.5

 
77.8

 
7.7

 
3.3

Total Sales
£
19.8

 
£
16.0

 
23.8

 
£
35.7

 
£
28.8

 
24.0

 
£
62.7

 
£
55.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability and Group Life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Market (< 500 employees)
£
7.0

 
£
7.8

 
(10.3
)%
 
£
12.2

 
£
13.7

 
(10.9
)%
 
£
31.2

 
£
29.0

Large Case Market
6.7

 
6.2

 
8.1

 
15.5

 
10.6

 
46.2

 
23.8

 
22.8

Subtotal
13.7

 
14.0

 
(2.1
)
 
27.7

 
24.3

 
14.0

 
55.0

 
51.8

Supplemental
6.1

 
2.0

 
N.M.

 
8.0

 
4.5

 
77.8

 
7.7

 
3.3

Total Sales
£
19.8

 
£
16.0

 
23.8

 
£
35.7

 
£
28.8

 
24.0

 
£
62.7

 
£
55.1


5. 1



Unum Group Sales Data for Colonial Life Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
% Change
 
6/30/2017
 
6/30/2016
 
% Change
 
12/31/2016
 
12/31/2015
Sales by Product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accident, Sickness, and Disability
$
73.6

 
$
70.1

 
5.0
 %
 
$
135.1

 
$
128.4

 
5.2
 %
 
$
310.6

 
$
276.1

Life
24.9

 
21.7

 
14.7

 
45.8

 
38.7

 
18.3

 
94.0

 
85.6

Cancer and Critical Illness
18.1

 
16.7

 
8.4

 
32.1

 
31.3

 
2.6

 
79.0

 
76.8

Total Sales
$
116.6

 
$
108.5

 
7.5

 
$
213.0

 
$
198.4

 
7.4

 
$
483.6

 
$
438.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Market (< 1,000 employees)
$
80.6

 
$
71.3

 
13.0
 %
 
$
150.8

 
$
133.3

 
13.1
 %
 
$
309.0

 
$
290.8

Large Case Market
11.5

 
12.1

 
(5.0
)
 
19.7

 
22.3

 
(11.7
)
 
59.8

 
54.2

Subtotal
92.1

 
83.4

 
10.4

 
170.5

 
155.6

 
9.6

 
368.8

 
345.0

Public Sector
24.5

 
25.1

 
(2.4
)
 
42.5

 
42.8

 
(0.7
)
 
114.8

 
93.5

Total Sales
$
116.6

 
$
108.5

 
7.5

 
$
213.0

 
$
198.4

 
7.4

 
$
483.6

 
$
438.5


5. 2



Unum Group Consolidated Balance Sheets
 
June 30
 
December 31
 
2017
 
2016
Assets
 
 
 
Investments
 
 
 
Fixed Maturity Securities
$
45,118.6

 
$
44,217.3

Mortgage Loans
2,081.2

 
2,038.9

Policy Loans
3,409.8

 
3,463.2

Other Long-term Investments
661.3

 
631.5

Short-term Investments
1,120.8

 
780.0

Total Investments
52,391.7

 
51,130.9

 
 
 
 
Other Assets
 
 
 
Cash and Bank Deposits
117.0

 
100.4

Accounts and Premiums Receivable
1,629.1

 
1,610.8

Reinsurance Recoverable
4,850.6

 
4,858.9

Accrued Investment Income
808.6

 
693.3

Deferred Acquisition Costs
2,123.9

 
2,094.2

Goodwill
337.1

 
335.1

Property and Equipment
497.1

 
500.6

Other Assets
626.5

 
617.3

Total Assets
$
63,381.6

 
$
61,941.5

 
 
 
 
Liabilities
 
 
 
Policy and Contract Benefits
$
1,552.5

 
$
1,507.9

Reserves for Future Policy and Contract Benefits
45,136.1

 
44,245.9

Unearned Premiums
456.9

 
363.7

Other Policyholders’ Funds
1,627.5

 
1,623.8

Income Tax Payable
3.5

 
20.6

Deferred Income Tax
247.3

 
130.3

Long-term Debt - Non-recourse
225.5

 
255.0

Long-term Debt - All Other
2,742.9

 
2,744.4

Payables for Collateral on Investments
404.8

 
406.0

Other Liabilities
1,668.0

 
1,675.9

Total Liabilities
54,065.0

 
52,973.5

 
 
 
 
Stockholders’ Equity
 
 
 
Common Stock
30.4

 
30.4

Additional Paid-in Capital
2,282.9

 
2,272.8

Accumulated Other Comprehensive Income (Loss)
104.9

 
(51.0
)
Retained Earnings
9,126.7

 
8,744.0

Treasury Stock
(2,228.3
)
 
(2,028.2
)
Total Stockholders’ Equity
9,316.6

 
8,968.0

Total Liabilities and Stockholders’ Equity
$
63,381.6

 
$
61,941.5


6



Unum Group Deferred Acquisition Costs by Segment

 
Unum US
 
Unum UK
 
Colonial Life
 
Consolidated
Balances at December 31, 2015
$
1,136.4

 
$
27.1

 
$
845.0

 
$
2,008.5

Capitalization
314.1

 
8.2

 
270.1

 
592.4

Amortization
(275.2
)
 
(9.7
)
 
(208.1
)
 
(493.0
)
Adjustment Related to Unrealized Investment Gains and Losses
1.2

 

 
(10.7
)
 
(9.5
)
Foreign Currency

 
(4.2
)
 

 
(4.2
)
Balances at December 31, 2016
1,176.5

 
21.4

 
896.3

 
2,094.2

Capitalization
165.8

 
3.8

 
145.7

 
315.3

Amortization
(163.1
)
 
(4.5
)
 
(112.2
)
 
(279.8
)
Adjustment Related to Unrealized Investment Gains and Losses
(0.3
)
 

 
(6.7
)
 
(7.0
)
   Foreign Currency

 
1.2

 

 
1.2

Balances at June 30, 2017
$
1,178.9

 
$
21.9

 
$
923.1

 
$
2,123.9


6. 1



Unum Group Balance Sheets by Segment - June 30, 2017

 
Unum US
 
 
 
 
 
 
 
 
 
 
 
Group Disability
 
Group Life and Accidental Death & Dismemberment
 
Supplemental and Voluntary
 
Total Unum US
 
Unum UK
 
Colonial Life
 
Closed Block
 
Corporate
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
8,713.3

 
$
2,305.8

 
$
4,614.7

 
$
15,633.8

 
$
3,041.2

 
$
2,879.5

 
$
28,521.7

 
$
2,315.5

 
$
52,391.7

Deferred Acquisition Costs
93.3

 
75.5

 
1,010.1

 
1,178.9

 
21.9

 
923.1

 

 

 
2,123.9

Goodwill

 

 
271.1

 
271.1

 
38.3

 
27.7

 

 

 
337.1

All Other
528.6

 
190.0

 
430.4

 
1,149.0

 
256.7

 
209.5

 
5,944.9

 
968.8

 
8,528.9

Total Assets
$
9,335.2

 
$
2,571.3

 
$
6,326.3

 
$
18,232.8

 
$
3,358.1

 
$
4,039.8

 
$
34,466.6

 
$
3,284.3

 
$
63,381.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserves and Policyholder Benefits
$
7,511.1

 
$
1,718.1

 
$
3,974.5

 
$
13,203.7

 
$
2,579.8

 
$
2,407.4

 
$
30,582.1

 
$

 
$
48,773.0

Debt

 

 

 

 

 

 
225.5

 
2,742.9

 
2,968.4

All Other
280.2

 
52.4

 
438.0

 
770.6

 
88.5

 
291.6

 
(22.9
)
 
1,195.8

 
2,323.6

Total Liabilities
7,791.3

 
1,770.5

 
4,412.5

 
13,974.3

 
2,668.3

 
2,699.0

 
30,784.7

 
3,938.7

 
54,065.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocated Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Allocated Stockholders' Equity
1,529.9

 
771.8

 
1,786.1

 
4,087.8

 
606.1

 
1,239.4

 
3,217.4

 
(696.8
)
 
8,453.9

Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges
14.0

 
29.0

 
127.7

 
170.7

 
83.7

 
101.4

 
464.5

 
42.4

 
862.7

Total Allocated Stockholders' Equity
1,543.9

 
800.8

 
1,913.8

 
4,258.5

 
689.8

 
1,340.8

 
3,681.9

 
(654.4
)
 
9,316.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Allocated Stockholders' Equity
$
9,335.2

 
$
2,571.3

 
$
6,326.3

 
$
18,232.8

 
$
3,358.1

 
$
4,039.8

 
$
34,466.6

 
$
3,284.3

 
$
63,381.6


Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with our target capital levels for regulatory and rating agency purposes. We modify this formula periodically to recognize changes in the views of capital requirements.

6. 2



Unum Group Balance Sheets by Segment - December 31, 2016

 
Unum US
 
 
 
 
 
 
 
 
 
 
 
Group Disability
 
Group Life and Accidental Death & Dismemberment
 
Supplemental and Voluntary
 
Total Unum US
 
Unum UK
 
Colonial Life
 
Closed Block
 
Corporate
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
8,763.7

 
$
2,327.1

 
$
4,488.9

 
$
15,579.7

 
$
2,856.9

 
$
2,787.4

 
$
27,894.5

 
$
2,012.4

 
$
51,130.9

Deferred Acquisition Costs
89.8

 
73.4

 
1,013.3

 
1,176.5

 
21.4

 
896.3

 

 

 
2,094.2

Goodwill

 

 
271.1

 
271.1

 
36.3

 
27.7

 

 

 
335.1

All Other
445.4

 
144.0

 
419.9

 
1,009.3

 
186.8

 
211.8

 
5,839.8

 
1,133.6

 
8,381.3

Total Assets
$
9,298.9

 
$
2,544.5

 
$
6,193.2

 
$
18,036.6

 
$
3,101.4

 
$
3,923.2

 
$
33,734.3

 
$
3,146.0

 
$
61,941.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserves and Policyholder Benefits
$
7,495.6

 
$
1,690.4

 
$
3,872.2

 
$
13,058.2

 
$
2,365.4

 
$
2,341.7

 
$
29,976.0

 
$

 
$
47,741.3

Debt

 

 

 

 

 

 
255.0

 
2,744.4

 
2,999.4

All Other
272.7

 
58.1

 
429.5

 
760.3

 
72.0

 
270.8

 
(105.5
)
 
1,235.2

 
2,232.8

Total Liabilities
7,768.3

 
1,748.5

 
4,301.7

 
13,818.5

 
2,437.4

 
2,612.5

 
30,125.5

 
3,979.6

 
52,973.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocated Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Allocated Stockholders' Equity
1,511.1

 
766.9

 
1,790.2

 
4,068.2

 
571.3

 
1,227.0

 
3,173.9

 
(840.5
)
 
8,199.9

Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges
19.5

 
29.1

 
101.3

 
149.9

 
92.7

 
83.7

 
434.9

 
6.9

 
768.1

Total Allocated Stockholders' Equity
1,530.6

 
796.0

 
1,891.5

 
4,218.1

 
664.0

 
1,310.7

 
3,608.8

 
(833.6
)
 
8,968.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Allocated Stockholders' Equity
$
9,298.9

 
$
2,544.5

 
$
6,193.2

 
$
18,036.6

 
$
3,101.4

 
$
3,923.2

 
$
33,734.3

 
$
3,146.0

 
$
61,941.5


6. 3



Unum Group Financial Results by Segment

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 certain other items as specified in the following pages. 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.  We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in our Corporate segment as a component of "benefits and expenses" and the tax thereon is reported in "income tax" in the following charts.  Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting.

 
Three Months Ended
 
Six Months Ended
 
6/30/2017
 
6/30/2016
 
% Change
 
6/30/2017
 
6/30/2016
 
% Change
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Unum US
$
1,357.7

 
$
1,299.4

 
4.5
 %
 
$
2,718.1

 
$
2,600.7

 
4.5
 %
Unum UK
126.8

 
140.8

 
(9.9
)
 
248.1

 
280.1

 
(11.4
)
Colonial Life
376.3

 
351.4

 
7.1

 
750.6

 
702.6

 
6.8

Closed Block
281.4

 
290.0

 
(3.0
)
 
568.3

 
585.7

 
(3.0
)
 
2,142.2

 
2,081.6

 
2.9

 
4,285.1

 
4,169.1

 
2.8

Net Investment Income
 
 
 
 
 
 
 
 
 
 
 
Unum US
205.6

 
207.7

 
(1.0
)
 
408.1

 
415.1

 
(1.7
)
Unum UK
33.2

 
34.0

 
(2.4
)
 
59.8

 
60.8

 
(1.6
)
Colonial Life
36.7

 
35.6

 
3.1

 
71.8

 
69.6

 
3.2

Closed Block
340.0

 
341.1

 
(0.3
)
 
675.3

 
674.5

 
0.1

Corporate
5.0

 
4.9

 
2.0

 
7.9

 
9.7

 
(18.6
)
 
620.5

 
623.3

 
(0.4
)
 
1,222.9

 
1,229.7

 
(0.6
)
Other Income
 
 
 
 
 
 
 
 
 
 
 
Unum US
30.1

 
27.9

 
7.9

 
58.8

 
56.9

 
3.3

Unum UK

 
0.2

 
(100.0
)
 

 
0.2

 
(100.0
)
Colonial Life
0.2

 
0.3

 
(33.3
)
 
0.5

 
0.6

 
(16.7
)
Closed Block
20.2

 
21.4

 
(5.6
)
 
41.0

 
43.8

 
(6.4
)
Corporate
0.7

 
1.3

 
(46.2
)
 
1.1

 
1.6

 
(31.3
)
 
51.2

 
51.1

 
0.2

 
101.4

 
103.1

 
(1.6
)
Total Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Unum US
1,593.4

 
1,535.0

 
3.8

 
3,185.0

 
3,072.7

 
3.7

Unum UK
160.0

 
175.0

 
(8.6
)
 
307.9

 
341.1

 
(9.7
)
Colonial Life
413.2

 
387.3

 
6.7

 
822.9

 
772.8

 
6.5

Closed Block
641.6

 
652.5

 
(1.7
)
 
1,284.6

 
1,304.0

 
(1.5
)
Corporate
5.7

 
6.2

 
(8.1
)
 
9.0

 
11.3

 
(20.4
)
 
$
2,813.9

 
$
2,756.0

 
2.1

 
$
5,609.4

 
$
5,501.9

 
2.0


7



Unum Group Financial Results by Segment - Continued

 
Three Months Ended
 
Six Months Ended
 
6/30/2017
 
6/30/2016
 
% Change
 
6/30/2017
 
6/30/2016
 
% Change
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Unum US
$
1,345.6

 
$
1,307.8

 
2.9
 %
 
$
2,698.1

 
$
2,629.6

 
2.6
 %
Unum UK
131.1

 
138.1

 
(5.1
)
 
252.4

 
270.6

 
(6.7
)
Colonial Life
331.4

 
309.4

 
7.1

 
658.7

 
617.5

 
6.7

Closed Block
609.0

 
619.9

 
(1.8
)
 
1,220.4

 
1,237.7

 
(1.4
)
Corporate
43.3

 
45.9

 
(5.7
)
 
107.0

 
86.9

 
23.1

 
2,460.4

 
2,421.1

 
1.6

 
4,936.6

 
4,842.3

 
1.9

Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss), and Loss from Guaranty Fund Assessment
 
 
 
 
 
 
 
 
 
 
 
Unum US
247.8

 
227.2

 
9.1

 
486.9

 
443.1

 
9.9

Unum UK
28.9

 
36.9

 
(21.7
)
 
55.5

 
70.5

 
(21.3
)
Colonial Life
81.8

 
77.9

 
5.0

 
164.2

 
155.3

 
5.7

Closed Block
32.6

 
32.6

 

 
64.2

 
66.3

 
(3.2
)
Corporate
(37.6
)
 
(39.7
)
 
5.3

 
(77.4
)
 
(75.6
)
 
2.4

 
353.5

 
334.9

 
5.6

 
693.4

 
659.6

 
5.1

Income Tax Expense
113.1

 
101.9

 
11.0

 
216.9

 
202.4

 
7.2

 
 
 
 
 
 
 
 
 
 
 
 
Income Before Net Realized Investment Gain (Loss) and Loss from Guaranty Fund Assessment, Net of Tax
240.4

 
233.0

 
3.2

 
476.5

 
457.2

 
4.2

 


 
 
 
 
 
 
 
 
 
 
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $3.4; $1.5; $7.2; $(5.4))
4.7

 
3.8

 
(23.7
)
 
11.9

 
(9.8
)
 
N.M.

Loss from Guaranty Fund Assessment (net of tax benefit of $-; $-; $7.2; $-)

 

 

 
(13.4
)
 

 
N.M.

 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
245.1

 
$
236.8

 
3.5

 
$
475.0

 
$
447.4

 
6.2


7. 1



Unum Group Quarterly Historical Financial Results by Segment

 
6/30/17
 
3/31/17
 
12/31/16
 
9/30/16
 
6/30/16
 
3/31/16
 
12/31/15
 
9/30/15
 
6/30/15
Premium Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unum US
$
1,357.7

 
$
1,360.4

 
$
1,325.2

 
$
1,315.0

 
$
1,299.4

 
$
1,301.3

 
$
1,251.6

 
$
1,241.8

 
$
1,236.4

Unum UK
126.8

 
121.3

 
121.9

 
127.3

 
140.8

 
139.3

 
150.4

 
144.6

 
142.2

Colonial Life
376.3

 
374.3

 
360.4

 
354.1

 
351.4

 
351.2

 
337.4

 
333.1

 
335.9

Closed Block
281.4

 
286.9

 
291.7

 
293.0

 
290.0

 
295.7

 
298.4

 
301.3

 
303.0

 
2,142.2

 
2,142.9

 
2,099.2

 
2,089.4

 
2,081.6

 
2,087.5

 
2,037.8

 
2,020.8

 
2,017.5

Net Investment Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unum US
205.6

 
202.5

 
206.3

 
207.3

 
207.7

 
207.4

 
220.3

 
214.3

 
215.7

Unum UK
33.2

 
26.6

 
28.8

 
28.5

 
34.0

 
26.8

 
34.8

 
28.0

 
38.6

Colonial Life
36.7

 
35.1

 
35.8

 
36.1

 
35.6

 
34.0

 
35.6

 
35.9

 
36.9

Closed Block
340.0

 
335.3

 
343.6

 
334.1

 
341.1

 
333.4

 
340.4

 
327.5

 
331.7

Corporate
5.0

 
2.9

 
3.4

 
5.4

 
4.9

 
4.8

 
5.3

 
6.4

 
7.8

 
620.5

 
602.4

 
617.9

 
611.4

 
623.3

 
606.4

 
636.4

 
612.1

 
630.7

Other Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unum US
30.1

 
28.7

 
27.7

 
28.7

 
27.9

 
29.0

 
28.8

 
28.1

 
31.4

Unum UK

 

 

 

 
0.2

 

 

 

 

Colonial Life
0.2

 
0.3

 
0.2

 
0.4

 
0.3

 
0.3

 

 
0.1

 

Closed Block
20.2

 
20.8

 
20.7

 
21.5

 
21.4

 
22.4

 
21.8

 
21.5

 
22.8

Corporate
0.7

 
0.4

 
2.4

 
0.9

 
1.3

 
0.3

 
0.3

 
1.8

 
0.5

 
51.2

 
50.2

 
51.0

 
51.5

 
51.1

 
52.0

 
50.9

 
51.5

 
54.7

Total Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unum US
1,593.4

 
1,591.6

 
1,559.2

 
1,551.0

 
1,535.0

 
1,537.7

 
1,500.7

 
1,484.2

 
1,483.5

Unum UK
160.0

 
147.9

 
150.7

 
155.8

 
175.0

 
166.1

 
185.2

 
172.6

 
180.8

Colonial Life
413.2

 
409.7

 
396.4

 
390.6

 
387.3

 
385.5

 
373.0

 
369.1

 
372.8

Closed Block
641.6

 
643.0

 
656.0

 
648.6

 
652.5

 
651.5

 
660.6

 
650.3

 
657.5

Corporate
5.7

 
3.3

 
5.8

 
6.3

 
6.2

 
5.1

 
5.6

 
8.2

 
8.3

 
$
2,813.9

 
$
2,795.5

 
$
2,768.1

 
$
2,752.3

 
$
2,756.0

 
$
2,745.9

 
$
2,725.1

 
$
2,684.4

 
$
2,702.9


8



Unum Group Quarterly Historical Financial Results by Segment - Continued
 
6/30/17
 
3/31/17
 
12/31/16
 
9/30/16
 
6/30/16
 
3/31/16
 
12/31/15
 
9/30/15
 
6/30/15
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unum US
$
1,345.6

 
$
1,352.5

 
$
1,319.1

 
$
1,320.0

 
$
1,307.8

 
$
1,321.8

 
$
1,286.5

 
$
1,265.5

 
$
1,280.7

Unum UK
131.1

 
121.3

 
120.8

 
127.6

 
138.1

 
132.5

 
148.2

 
139.9

 
142.5

Colonial Life
331.4

 
327.3

 
316.5

 
311.6

 
309.4

 
308.1

 
295.4

 
292.8

 
295.2

Closed Block
609.0

 
611.4

 
621.4

 
620.0

 
619.9

 
617.8

 
632.5

 
622.6

 
620.9

Corporate
43.3

 
63.7

 
47.5

 
52.0

 
45.9

 
41.0

 
43.2

 
38.1

 
44.6

 
2,460.4

 
2,476.2

 
2,425.3

 
2,431.2

 
2,421.1

 
2,421.2

 
2,405.8

 
2,358.9

 
2,383.9

Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss), and Loss from Guaranty Fund Assessment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unum US
247.8

 
239.1

 
240.1

 
231.0

 
227.2

 
215.9

 
214.2

 
218.7

 
202.8

Unum UK
28.9

 
26.6

 
29.9

 
28.2

 
36.9

 
33.6

 
37.0

 
32.7

 
38.3

Colonial Life
81.8

 
82.4

 
79.9

 
79.0

 
77.9

 
77.4

 
77.6

 
76.3

 
77.6

Closed Block
32.6

 
31.6

 
34.6

 
28.6

 
32.6

 
33.7

 
28.1

 
27.7

 
36.6

Corporate
(37.6
)
 
(39.8
)
 
(41.7
)
 
(45.7
)
 
(39.7
)
 
(35.9
)
 
(37.6
)
 
(29.9
)
 
(36.3
)
 
353.5

 
339.9

 
342.8

 
321.1

 
334.9

 
324.7

 
319.3

 
325.5

 
319.0

Income Tax Expense
113.1

 
103.8

 
113.1

 
92.4

 
101.9

 
100.5

 
90.7

 
104.4

 
98.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Net Realized Investment Gain (Loss) and Loss from Guaranty Fund Assessment, Net of Tax
240.4

 
236.1

 
229.7

 
228.7

 
233.0

 
224.2

 
228.6

 
221.1

 
220.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Realized Investment Gain (Loss)
8.1

 
11.0

 
28.4

 
11.0

 
5.3

 
(20.5
)
 
(2.7
)
 
(26.6
)
 
0.8

Tax Expense (Benefit) on Net Realized Investment Gain (Loss)
3.4

 
3.8

 
10.1

 
3.7

 
1.5

 
(6.9
)
 
(0.2
)
 
(9.3
)
 
(2.9
)
Loss from Guaranty Fund Assessment

 
(20.6
)
 

 

 

 

 

 

 

Tax Benefit on Loss from Guaranty Fund Assessment

 
(7.2
)
 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
245.1

 
$
229.9


$
248.0

 
$
236.0

 
$
236.8

 
$
210.6

 
$
226.1

 
$
203.8

 
$
224.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income Per Common Share - Assuming Dilution
$
1.07

 
$
1.00

 
$
1.07

 
$
1.01

 
$
1.00

 
$
0.88

 
$
0.93

 
$
0.83

 
$
0.90


8. 1



Unum Group Financial Results for Unum US Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
$
1,357.7

 
$
1,299.4

 
$
2,718.1

 
$
2,600.7

 
$
5,240.9

 
$
4,960.0

Net Investment Income
205.6

 
207.7

 
408.1

 
415.1

 
828.7

 
865.3

Other Income
30.1

 
27.9

 
58.8

 
56.9

 
113.3

 
119.2

Total
1,593.4

 
1,535.0

 
3,185.0

 
3,072.7

 
6,182.9

 
5,944.5

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
915.7

 
898.4

 
1,839.1

 
1,800.6

 
3,624.3

 
3,476.7

Commissions
144.7

 
145.4

 
297.9

 
294.4

 
580.4

 
562.2

Deferral of Acquisition Costs
(78.5
)
 
(78.7
)
 
(165.8
)
 
(163.6
)
 
(314.1
)
 
(307.3
)
Amortization of Deferred Acquisition Costs
79.6

 
71.2

 
163.1

 
149.7

 
275.2

 
272.3

Other Expenses
284.1

 
271.5

 
563.8

 
548.5

 
1,102.9

 
1,090.6

Total
1,345.6

 
1,307.8

 
2,698.1

 
2,629.6

 
5,268.7

 
5,094.5

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
247.8

 
$
227.2

 
$
486.9

 
$
443.1

 
$
914.2

 
$
850.0

 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
Benefit Ratio
67.4
%
 
69.1
%
 
67.7
%
 
69.2
%
 
69.2
%
 
70.1
%
Other Expense Ratio
20.9
%
 
20.9
%
 
20.7
%
 
21.1
%
 
21.0
%
 
22.0
%
Operating Income Ratio
18.3
%
 
17.5
%
 
17.9
%
 
17.0
%
 
17.4
%
 
17.1
%

9



Unum Group Financial Results for Unum US Group Disability

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
437.7

 
$
432.9

 
$
872.1

 
$
863.5

 
$
1,726.6

 
$
1,644.7

Group Short-term Disability
158.3

 
156.2

 
316.2

 
313.7

 
626.1

 
607.4

Total Premium Income
596.0

 
589.1

 
1,188.3

 
1,177.2

 
2,352.7

 
2,252.1

Net Investment Income
118.1

 
119.8

 
233.6

 
240.6

 
479.5

 
496.5

Other Income
25.6

 
22.5

 
49.6

 
45.4

 
91.1

 
92.9

Total
739.7

 
731.4

 
1,471.5

 
1,463.2

 
2,923.3

 
2,841.5

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
455.9

 
471.2

 
909.7

 
945.5

 
1,863.8

 
1,834.0

Commissions
44.9

 
44.9

 
91.3

 
90.1

 
178.2

 
172.2

Deferral of Acquisition Costs
(11.4
)
 
(11.3
)
 
(23.4
)
 
(23.7
)
 
(46.4
)
 
(43.2
)
Amortization of Deferred Acquisition Costs
9.9

 
8.9

 
19.9

 
18.0

 
35.9

 
33.7

Other Expenses
148.0

 
143.3

 
292.9

 
288.5

 
572.1

 
572.4

Total
647.3

 
657.0

 
1,290.4

 
1,318.4

 
2,603.6

 
2,569.1

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
92.4

 
$
74.4

 
$
181.1

 
$
144.8

 
$
319.7

 
$
272.4

 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
Benefit Ratio
76.5
%
 
80.0
%
 
76.6
%
 
80.3
%
 
79.2
%
 
81.4
%
Other Expense Ratio
24.8
%
 
24.3
%
 
24.6
%
 
24.5
%
 
24.3
%
 
25.4
%
Operating Income Ratio
15.5
%
 
12.6
%
 
15.2
%
 
12.3
%
 
13.6
%
 
12.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Persistency:
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
 
 
 
 
89.3
%
 
90.3
%
 
91.0
%
 
92.1
%
Group Short-term Disability
 
 
 
 
85.7
%
 
87.0
%
 
87.7
%
 
88.1
%

9. 1



Unum Group Financial Results for Unum US Group Life and Accidental Death & Dismemberment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Group Life
$
363.9

 
$
348.7

 
$
731.7

 
$
700.2

 
$
1,410.0

 
$
1,347.4

Accidental Death & Dismemberment
36.7

 
34.9

 
73.3

 
69.5

 
140.3

 
131.7

Total Premium Income
400.6

 
383.6

 
805.0

 
769.7

 
1,550.3

 
1,479.1

Net Investment Income
27.8

 
28.9

 
55.4

 
57.4

 
113.4

 
135.1

Other Income
1.2

 
1.2

 
2.2

 
2.2

 
4.5

 
2.1

Total
429.6

 
413.7

 
862.6

 
829.3

 
1,668.2

 
1,616.3

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
282.8

 
274.4

 
573.5

 
550.3

 
1,112.6

 
1,061.6

Commissions
32.1

 
31.0

 
64.7

 
63.3

 
126.8

 
121.2

Deferral of Acquisition Costs
(8.8
)
 
(8.7
)
 
(18.1
)
 
(18.5
)
 
(35.7
)
 
(33.3
)
Amortization of Deferred Acquisition Costs
8.0

 
7.2

 
16.0

 
14.7

 
29.2

 
26.2

Other Expenses
54.6

 
52.9

 
109.6

 
107.2

 
213.5

 
215.7

Total
368.7

 
356.8

 
745.7

 
717.0

 
1,446.4

 
1,391.4

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
60.9

 
$
56.9

 
$
116.9

 
$
112.3

 
$
221.8

 
$
224.9

 
 
 
 
 


 


 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 


 


 
 
 
 
Benefit Ratio
70.6
%
 
71.5
%
 
71.2
%
 
71.5
%
 
71.8
%
 
71.8
%
Other Expense Ratio
13.6
%
 
13.8
%
 
13.6
%
 
13.9
%
 
13.8
%
 
14.6
%
Operating Income Ratio
15.2
%
 
14.8
%
 
14.5
%
 
14.6
%
 
14.3
%
 
15.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Persistency:
 
 
 
 
 
 
 
 
 
 
 
Group Life
 
 
 
 
87.7
%
 
90.0
%
 
90.7
%
 
89.2
%
Accidental Death & Dismemberment
 
 
 
 
87.3
%
 
89.4
%
 
90.3
%
 
89.8
%

9. 2



Unum Group Financial Results for Unum US Supplemental and Voluntary

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
$
106.7

 
$
124.9

 
$
213.7

 
$
248.8

 
$
480.3

 
$
478.9

Voluntary Benefits
213.2

 
201.8

 
428.4

 
405.0

 
796.5

 
749.9

Dental and Vision
41.2

 

 
82.7

 

 
61.1

 

Total Premium Income
361.1

 
326.7

 
724.8

 
653.8

 
1,337.9

 
1,228.8

Net Investment Income
59.7

 
59.0

 
119.1

 
117.1

 
235.8

 
233.7

Other Income
3.3

 
4.2

 
7.0

 
9.3

 
17.7

 
24.2

Total
424.1

 
389.9

 
850.9

 
780.2

 
1,591.4

 
1,486.7


 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
177.0

 
152.8

 
355.9

 
304.8

 
647.9

 
581.1

Commissions
67.7

 
69.5

 
141.9

 
141.0

 
275.4

 
268.8

Deferral of Acquisition Costs
(58.3
)
 
(58.7
)
 
(124.3
)
 
(121.4
)
 
(232.0
)
 
(230.8
)
Amortization of Deferred Acquisition Costs
61.7

 
55.1

 
127.2

 
117.0

 
210.1

 
212.4

Other Expenses
81.5

 
75.3

 
161.3

 
152.8

 
317.3

 
302.5

Total
329.6

 
294.0

 
662.0

 
594.2

 
1,218.7

 
1,134.0

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
94.5

 
$
95.9

 
$
188.9

 
$
186.0

 
$
372.7

 
$
352.7

 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
Benefit Ratios:
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
51.2
%
 
53.8
%
 
52.9
%
 
52.4
%
 
52.9
%
 
51.8
%
Voluntary Benefits
43.4
%
 
42.4
%
 
42.8
%
 
43.1
%
 
44.3
%
 
44.4
%
Dental and Vision
72.3
%
 
%
 
71.9
%
 
%
 
66.6
%
 
%
Other Expense Ratio
22.6
%
 
23.0
%
 
22.3
%
 
23.4
%
 
23.7
%
 
24.6
%
Operating Income Ratio
26.2
%
 
29.4
%
 
26.1
%
 
28.4
%
 
27.9
%
 
28.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Persistency:
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
 
 
 
 
91.0
%
 
91.3
%
 
91.1
%
 
90.3
%
Voluntary Benefits
 
 
 
 
76.2
%
 
76.7
%
 
76.9
%
 
75.9
%
Dental and Vision
 
 
 
 
82.0
%
 
%
 
84.6
%
 
%

9. 3



Unum Group Financial Results for Unum UK Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
83.8

 
$
95.5

 
$
164.6

 
$
188.6

 
$
355.2

 
$
397.4

Group Life
25.4

 
27.3

 
50.2

 
56.0

 
105.7

 
121.5

Supplemental
17.6

 
18.0

 
33.3

 
35.5

 
68.4

 
57.3

Total Premium Income
126.8

 
140.8

 
248.1

 
280.1

 
529.3

 
576.2

Net Investment Income
33.2

 
34.0

 
59.8

 
60.8

 
118.1

 
124.9

Other Income

 
0.2

 

 
0.2

 
0.2

 

Total
160.0

 
175.0

 
307.9

 
341.1

 
647.6

 
701.1

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
95.8

 
98.8

 
182.5

 
193.5

 
367.4

 
394.8

Commissions
9.0

 
9.7

 
17.8

 
18.7

 
38.9

 
41.8

Deferral of Acquisition Costs
(2.0
)
 
(2.0
)
 
(3.8
)
 
(4.0
)
 
(8.2
)
 
(9.6
)
Amortization of Deferred Acquisition Costs
2.3

 
2.4

 
4.5

 
5.1

 
9.7

 
11.3

Other Expenses
26.0

 
29.2

 
51.4

 
57.3

 
111.2

 
122.2

Total
131.1

 
138.1

 
252.4

 
270.6

 
519.0

 
560.5

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
28.9

 
$
36.9

 
$
55.5

 
$
70.5

 
$
128.6

 
$
140.6

 
 
 
 
 
 
 
 
 
 
 
 

10



Unum Group Financial Results for Unum UK Segment - Continued

 
Three Months Ended
 
Six Months Ended
 
Year Ended
(in millions of pounds, except exchange rate)
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
£
65.5

 
£
66.6

 
£
130.7

 
£
131.6

 
£
262.0

 
£
259.9

Group Life
19.9

 
18.9

 
39.9

 
39.0

 
78.0

 
79.5

Supplemental
13.7

 
12.6

 
26.4

 
24.8

 
50.5

 
37.5

Total Premium Income
99.1

 
98.1

 
197.0

 
195.4

 
390.5

 
376.9

Net Investment Income
26.0

 
23.7

 
47.4

 
42.4

 
87.3

 
81.6

Other Income

 
0.1

 

 
0.1

 
0.1

 

Total
125.1

 
121.9

 
244.4

 
237.9

 
477.9

 
458.5

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
74.9

 
68.8

 
144.8

 
134.9

 
270.9

 
258.1

Commissions
7.1

 
6.8

 
14.2

 
13.0

 
28.9

 
27.4

Deferral of Acquisition Costs
(1.6
)
 
(1.4
)
 
(3.0
)
 
(2.8
)
 
(6.1
)
 
(6.3
)
Amortization of Deferred Acquisition Costs
1.8

 
1.7

 
3.5

 
3.6

 
7.2

 
7.4

Other Expenses
20.3

 
20.3

 
40.9

 
40.0

 
82.2

 
79.9

Total
102.5

 
96.2

 
200.4

 
188.7

 
383.1

 
366.5

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
£
22.6

 
£
25.7

 
£
44.0

 
£
49.2

 
£
94.8

 
£
92.0

 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Pound/Dollar Exchange Rate
1.279

 
1.436

 
1.261

 
1.433

 
1.357

 
1.528

 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
Benefit Ratio
75.6
%
 
70.1
%
 
73.5
%
 
69.0
%
 
69.4
%
 
68.5
%
Other Expense Ratio
20.5
%
 
20.7
%
 
20.8
%
 
20.5
%
 
21.0
%
 
21.2
%
Operating Income Ratio
22.8
%
 
26.2
%
 
22.3
%
 
25.2
%
 
24.3
%
 
24.4
%
 
 
 
 
 
 
 
 
 
 
 
 
Persistency:
 
 
 
 
 
 
 
 
 
 
 
Group Long-term Disability
 
 
 
 
86.4
%
 
87.8
%
 
89.5
%
 
89.2
%
Group Life
 
 
 
 
80.8
%
 
78.8
%
 
81.3
%
 
80.0
%
Supplemental
 
 
 
 
91.3
%
 
89.4
%
 
89.9
%
 
87.7
%

10. 1



Unum Group Financial Results for Colonial Life Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Accident, Sickness, and Disability
$
220.1

 
$
205.9

 
$
439.2

 
$
411.5

 
$
830.0

 
$
789.0

Life
75.0

 
67.7

 
149.2

 
135.4

 
273.8

 
252.4

Cancer and Critical Illness
81.2

 
77.8

 
162.2

 
155.7

 
313.3

 
297.2

Total Premium Income
376.3

 
351.4

 
750.6

 
702.6

 
1,417.1

 
1,338.6

Net Investment Income
36.7

 
35.6

 
71.8

 
69.6

 
141.5

 
145.4

Other Income
0.2

 
0.3

 
0.5

 
0.6

 
1.2

 
0.1

Total
413.2

 
387.3

 
822.9

 
772.8

 
1,559.8

 
1,484.1

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
192.9

 
179.7

 
383.1

 
358.6

 
726.4

 
683.0

Commissions
85.2

 
76.8

 
170.4

 
154.6

 
313.6

 
293.5

Deferral of Acquisition Costs
(72.7
)
 
(66.0
)
 
(145.7
)
 
(131.6
)
 
(270.1
)
 
(252.8
)
Amortization of Deferred Acquisition Costs
56.4

 
52.6

 
112.2

 
103.6

 
208.1

 
198.7

Other Expenses
69.6

 
66.3

 
138.7

 
132.3

 
267.6

 
252.6

Total
331.4

 
309.4

 
658.7

 
617.5

 
1,245.6

 
1,175.0

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
81.8

 
$
77.9

 
$
164.2

 
$
155.3

 
$
314.2

 
$
309.1

 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
Benefit Ratio
51.3
%
 
51.1
%
 
51.0
%
 
51.0
%
 
51.3
%
 
51.0
%
Other Expense Ratio
18.5
%
 
18.9
%
 
18.5
%
 
18.8
%
 
18.9
%
 
18.9
%
Operating Income Ratio
21.7
%
 
22.2
%
 
21.9
%
 
22.1
%
 
22.2
%
 
23.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Persistency:
 
 
 
 
 
 
 
 
 
 
 
Accident, Sickness, and Disability
 
 
 
 
74.9
%
 
74.7
%
 
75.6
%
 
74.8
%
Life
 
 
 
 
84.5
%
 
84.5
%
 
85.0
%
 
84.9
%
Cancer and Critical Illness
 
 
 
 
82.2
%
 
81.8
%
 
82.9
%
 
81.2
%

11



Unum Group Financial Results for Closed Block Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Premium Income
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
$
118.5

 
$
130.5

 
$
239.8

 
$
264.1

 
$
521.9

 
$
572.4

Long-term Care
160.9

 
158.9

 
324.0

 
320.6

 
643.9

 
633.5

All Other
2.0

 
0.6

 
4.5

 
1.0

 
4.6

 
1.7

Total Premium Income
281.4

 
290.0

 
568.3

 
585.7

 
1,170.4

 
1,207.6

Net Investment Income
340.0

 
341.1

 
675.3

 
674.5

 
1,352.2

 
1,320.0

Other Income
20.2

 
21.4

 
41.0

 
43.8

 
86.0

 
89.3

Total
641.6

 
652.5

 
1,284.6

 
1,304.0

 
2,608.6

 
2,616.9

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
547.6

 
556.6

 
1,096.3

 
1,110.6

 
2,223.7

 
2,228.3

Commissions
22.4

 
23.1

 
45.4

 
47.2

 
93.8

 
98.8

Interest and Debt Expense
1.7

 
1.7

 
3.4

 
3.4

 
6.9

 
6.6

Other Expenses
37.3

 
38.5

 
75.3

 
76.5

 
154.7

 
164.1

Total
609.0

 
619.9

 
1,220.4

 
1,237.7

 
2,479.1

 
2,497.8

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
32.6

 
$
32.6


$
64.2

 
$
66.3

 
$
129.5


$
119.1

 
 
 
 
 
 
 
 
 
 
 
 
Interest Adjusted Loss Ratios:
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
82.3
%
 
84.3
%
 
83.0
%
 
84.1
%
 
83.6
%
 
82.8
%
Long-term Care
89.4
%
 
92.6
%
 
89.0
%
 
90.7
%
 
91.1
%
 
87.6
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating Ratios (% of Premium Income):
 
 
 
 
 
 
 
 
 
 
 
Other Expense Ratio
13.3
%
 
13.3
%
 
13.3
%
 
13.1
%
 
13.2
%
 
13.6
%
Operating Income Ratio
11.6
%
 
11.2
%
 
11.3
%
 
11.3
%
 
11.1
%
 
9.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Persistency:
 
 
 
 
 
 
 
 
 
 
 
Individual Disability
 
 
 
 
90.0
%
 
90.9
%
 
90.9
%
 
90.9
%
Long-term Care
 
 
 
 
95.3
%
 
94.8
%
 
94.8
%
 
95.7
%

12



Unum Group Financial Results for Corporate Segment

 
Three Months Ended
 
Six Months Ended
 
Year Ended
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
12/31/2016
 
12/31/2015
Operating Revenue
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income
$
5.0

 
$
4.9

 
$
7.9

 
$
9.7

 
$
18.5

 
$
25.6

Other Income
0.7

 
1.3

 
1.1

 
1.6

 
4.9

 
2.9

Total
5.7

 
6.2

 
9.0

 
11.3

 
23.4

 
28.5

 
 
 
 
 
 
 
 
 
 
 
 
Interest and Other Expenses*
43.3

 
45.9

 
107.0

 
86.9

 
186.4

 
165.2

 
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Including Loss from Guaranty Fund Assessment
(37.6
)
 
(39.7
)
 
(98.0
)
 
(75.6
)
 
(163.0
)
 
(136.7
)
Loss from Guaranty Fund Assessment

 

 
20.6

 

 

 

Operating Loss
$
(37.6
)
 
$
(39.7
)
 
$
(77.4
)
 
$
(75.6
)
 
$
(163.0
)
 
$
(136.7
)

* We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans, from the results of our Corporate segment. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in our Corporate segment as a component of "interest and other expenses" in the above chart. Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting.

13



Unum Group Reserves

 
June 30, 2017
 
Gross

Total


 
Policy




Claim Reserves





Reinsurance

Total
 
Reserves

%

Incurred

IBNR

%

Total

Ceded

Net
Group Disability
$




$
6,091.5


$
632.4


29.0
%

$
6,723.9


$
73.1


$
6,650.8

Group Life and Accidental Death & Dismemberment
64.1


0.3


711.9


195.4


3.9


971.4


4.9


966.5

Individual Disability
539.7


2.9


1,317.1


135.2


6.2


1,992.0


201.5


1,790.5

Voluntary Benefits
1,522.5


8.2


46.3


54.5


0.4


1,623.3


27.4


1,595.9

Dental and Vision

 

 
2.6

 
9.6

 
0.1

 
12.2

 
0.2

 
12.0

Unum US Segment
2,126.3


11.4


8,169.4


1,027.1


39.6


11,322.8


307.1


11,015.7



















Unum UK Segment
18.6


0.1


1,836.1


106.6


8.4


1,961.3


85.9


1,875.4



















Colonial Life Segment
1,923.9


10.4


281.0


130.3


1.8


2,335.2


8.4


2,326.8


















Individual Disability
461.1


2.5


9,546.5


233.9


42.1


10,241.5


1,603.9


8,637.6

Long-term Care
8,148.5


44.0


1,430.2


143.0


6.8


9,721.7


41.0


9,680.7

Other
5,852.4


31.6


178.7


126.8


1.3


6,157.9


5,024.6


1,133.3

Closed Block Segment
14,462.0


78.1


11,155.4


503.7


50.2


26,121.1


6,669.5


19,451.6





















Subtotal
$
18,530.8


100.0
%

$
21,441.9


$
1,767.7


100.0
%

41,740.4


7,070.9


34,669.5




















Adjustment Related to Unrealized Investment Gains and Losses










4,948.2


360.7


4,587.5




















Consolidated










$
46,688.6


$
7,431.6


$
39,257.0


The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are primarily due to movements in the U.S. Treasury rates and credit spreads.

14



Unum Group Reserves


December 31, 2016

Gross

Total Reinsurance Ceded



Policy Reserves




Claim Reserves






Total Net


%

Incurred

IBNR

%

Total


Group Disability
$


%

$
6,201.0


$
608.6


29.3
%

$
6,809.6


$
74.3


$
6,735.3

Group Life and Accidental Death & Dismemberment
65.4


0.3


704.8


192.6


3.9


962.8


4.1


958.7

Individual Disability
544.6


3.0


1,298.5


130.6


6.1


1,973.7


201.0


1,772.7

Voluntary Benefits
1,492.7


8.2


45.5


50.6


0.4


1,588.8


27.7


1,561.1

Dental and Vision

 

 
3.9

 
8.1

 
0.1

 
12.0

 
0.2

 
11.8

Unum US Segment
2,102.7


11.5
%

8,253.7


990.5


39.8
%

11,346.9


307.3


11,039.6



















Unum UK Segment
18.2


0.1


1,714.2


113.3


7.9


1,845.7


81.8


1,763.9



















Colonial Life Segment
1,871.0


10.3


277.8


132.0


1.8


2,280.8


7.9


2,272.9


















Individual Disability
513.6


2.8


9,696.4


251.6


42.8


10,461.6


1,601.2


8,860.4

Long-term Care
7,898.4


43.3


1,360.4


136.6


6.4


9,395.4


41.8


9,353.6

Other
5,848.3


32.0


189.8


132.1


1.3


6,170.2


5,030.6


1,139.6

Closed Block Segment
14,260.3


78.1


11,246.6


520.3


50.5


26,027.2


6,673.6


19,353.6





















Subtotal
$
18,252.2


100.0
%

$
21,492.3


$
1,756.1


100.0
%

41,500.6


7,070.6


34,430.0




















Adjustment Related to Unrealized Investment Gains and Losses










4,253.2


321.3


3,931.9




















Consolidated










$
45,753.8


$
7,391.9


$
38,361.9


14. 1



Unum Group Investments

 
 
6/30/2017
 
 
 
6/30/2017
 
12/31/2016
Fixed Maturity Securities (Fair Value)
 
 
 
 
 
 
 
 
 
 
Public
 
$
29,631.6

 
65.6
%
 
Selected Statistics
 
 
 
 
Asset-Backed Securities
 
83.7

 
0.2

 
Earned Book Yield
 
5.24
%
 
5.30
%
Residential Mortgage-Backed Securities (1)
 
1,890.1

 
4.2

 
Average Duration (in years)
 
7.63

 
7.59

Commercial Mortgage-Backed Securities
 
128.7

 
0.3

 
 
 
 
 
 
Private Placements
 
5,379.6

 
11.9

 
 
 
 
 
 
High Yield
 
3,340.4

 
7.4

 
 
 
 
 
 
Government Securities
 
2,370.0

 
5.3

 
 
 
 
 
 
Municipal Securities (2)
 
2,252.4

 
5.0

 
 
 
 
 
 
Redeemable Preferred Stocks
 
42.1

 
0.1

 
 
 
 
 
 
Total
 
$
45,118.6

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized Cost
 
Fair Value
 
 
 
 
 
 
Quality Ratings of Fixed Maturity Securities
 
 
 
 
 
Schedule BA and Non-Current
 
 
 
 
Aaa
 
8.4
%
 
8.1
%
 
Total Non-Current Investments
 
$
42.1

 
$
41.9

Aa
 
7.8

 
8.3

 
Total Schedule BA Assets
 
$
543.3

 
$
510.3

A
 
28.1

 
29.3

 
 
 
 
 
 
Baa
 
47.5

 
46.9

 
 
 
 
 
 
Below Baa
 
8.2

 
7.4

 
 
 
 
 
 
Total
 
100.0
%
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes $12.2 million of high yield mortgage-backed securities.
(2) Includes $1.5 million of high yield taxable municipal securities.

15



Unum Group Investments at June 30, 2017

Fixed Maturity Securities - By Industry Classification - Unrealized Gain
Classification
 
Fair Value
 
Net Unrealized Gain
 
Fair Value of Fixed Maturity Securities with Gross Unrealized Loss
 
Gross Unrealized Loss
 
Fair Value of Fixed Maturity Securities with Gross Unrealized Gain
 
Gross Unrealized Gain
Basic Industry
 
$
2,590.4

 
$
265.8

 
$
238.9

 
$
5.2

 
$
2,351.5

 
$
271.0

Capital Goods
 
4,316.8

 
527.8

 
199.0

 
4.5

 
4,117.8

 
532.3

Communications
 
3,130.8

 
427.9

 
182.6

 
23.0

 
2,948.2

 
450.9

Consumer Cyclical
 
1,373.4

 
144.6

 
55.8

 
2.2

 
1,317.6

 
146.8

Consumer Non-Cyclical
 
6,799.0

 
766.8

 
554.4

 
21.4

 
6,244.6

 
788.2

Energy
 
4,968.2

 
560.3

 
495.1

 
38.4

 
4,473.1

 
598.7

Financial Institutions
 
3,352.9

 
326.6

 
200.5

 
2.2

 
3,152.4

 
328.8

Mortgage/Asset-Backed
 
2,102.5

 
117.6

 
459.1

 
6.2

 
1,643.4

 
123.8

Sovereigns
 
934.0

 
193.6

 

 

 
934.0

 
193.6

Technology
 
1,717.3

 
121.1

 
69.4

 
1.1

 
1,647.9

 
122.2

Transportation
 
1,932.5

 
268.4

 
130.6

 
1.7

 
1,801.9

 
270.1

U.S. Government Agencies and Municipalities
 
3,688.4

 
535.7

 
225.3

 
4.5

 
3,463.1

 
540.2

Public Utilities
 
8,212.4

 
1,236.0

 
252.1

 
9.3

 
7,960.3

 
1,245.3

Total
 
$
45,118.6

 
$
5,492.2

 
$
3,062.8

 
$
119.7

 
$
42,055.8

 
$
5,611.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Unrealized Loss on Fixed Maturity Securities By Length of Time in Unrealized Loss Position
 
 
Investment-Grade
 
 
 
Below-Investment-Grade
 
 
Category
 
Fair Value
 
Gross Unrealized Loss
 
 
 
Fair Value
 
Gross Unrealized Loss
 
 
Less than 91 days
 
$
511.2

 
$
4.5

 
 
 
$
98.2

 
$
1.1

 
 
91 through 180 days
 
55.9

 
1.3

 
 
 
107.7

 
3.5

 
 
181 through 270 days
 
1,435.1

 
31.7

 
 
 
52.2

 
1.9

 
 
271 days to 1 year
 
127.9

 
5.9

 
 
 
0.3

 

 
 
Greater than 1 year
 
191.9

 
7.8

 
 
 
482.4

 
62.0

 
 
Total
 
$
2,322.0

 
$
51.2

 
 
 
$
740.8

 
$
68.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

15. 1



Appendix to Statistical Supplement

2017 Significant Item

First quarter of 2017 loss from a guaranty fund assessment of $20.6 million before tax and $13.4 million after tax.

2016 Significant Item

In August 2016, we acquired 100 percent of the shares and voting interests in H&J Capital, L.L.C., parent of Starmount Life Insurance Company and AlwaysCare Benefits (which collectively we refer to as Starmount) for a total cash purchase price of $140.3 million, plus contingent cash consideration of $10.0 million. Starmount Life Insurance Company is an independent provider of dental and vision insurance in the U.S. workplace, and AlwaysCare Benefits is a nationally licensed, third-party administrator. Starmount's dental and vision products and new dental and vision products to be marketed by Unum US are reported in our Unum US segment within our supplemental and voluntary product lines. Colonial Life dental and vision products are expected to be introduced in 2018. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue, operating results, or sales during 2016.

2015 Significant Item

In September 2015, we acquired 100 percent of the common shares and voting interests in National Dental Plan Limited and associated companies (National Dental) for a total cash purchase price of £35.9 million or $54.3 million. National Dental, a provider of dental insurance in the U.K. workplace, is reported in our Unum UK segment as part of our supplemental product line. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue or results of operations during 2015.

 
16
 



Appendix to Statistical Supplement - Continued

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:

Consolidated operating revenue, which excludes realized investment gains or losses;
After-tax operating income or loss, which excludes realized investment gains or losses and certain other items, as applicable;
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 Northwind Holdings, LLC;
Book value per common share, which is calculated excluding accumulated other comprehensive income (AOCI); and
Premium income from our core operating segments, adjusted for the foreign exchange rate variability and premium income ceded in the individual disability reinsurance agreement entered into in the fourth quarter of 2016.

Realized investment gains or losses and 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.

Information reconciling the Company’s outlook on after-tax operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax operating income are those described in this Appendix to Statistical Supplement. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio. For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 16.2, other than book value per common share, which is presented on page 2.

16. 1



Reconciliation of Non-GAAP Financial Measures

 
Three Months Ended
 
June 30
 
March 31
 
December 31
 
September 30
 
June 30
 
March 31
 
December 31
 
September 30
 
June 30
 
2017
 
2016
 
2015
Total Revenue
$
2,822.0

 
$
2,806.5

 
$
2,796.5

 
$
2,763.3

 
$
2,761.3

 
$
2,725.4

 
$
2,722.4

 
$
2,657.8

 
$
2,703.7

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Realized Investment Gain (Loss)
8.1

 
11.0

 
28.4

 
11.0

 
5.3

 
(20.5
)
 
(2.7
)
 
(26.6
)
 
0.8

Operating Revenue
$
2,813.9

 
$
2,795.5

 
$
2,768.1

 
$
2,752.3

 
$
2,756.0

 
$
2,745.9

 
$
2,725.1

 
$
2,684.4

 
$
2,702.9

 
 
 
 
 
 
Annualized
 
 
After-Tax
 
 Average
 
Operating
 
 
Operating
 
 Allocated
 
Return
 
 
Income (Loss)
 
 Equity(1)
 
On Equity
Three Months Ended June 30, 2017
 
 
 
 
 
 
Unum US
 
$
161.9

 
$
4,075.9

 
15.9
%
Unum UK
 
23.0

 
592.8

 
15.5
%
Colonial Life
 
53.4

 
1,237.6

 
17.3
%
Core Operating Segments
 
238.3

 
5,906.3

 
16.1
%
Closed Block
 
22.0

 
3,183.0

 
 
Corporate
 
(19.9
)
 
(708.5
)
 
 
Total
 
$
240.4

 
$
8,380.8

 
11.5
%
 
 
 
 
 
 
 
Three Months Ended June 30, 2016
 
 
 
 
 
 
Unum US
 
$
148.5

 
$
3,945.8

 
15.1
%
Unum UK
 
32.3

 
616.8

 
20.9
%
Colonial Life
 
50.9

 
1,167.2

 
17.4
%
Core Operating Segments
 
231.7

 
5,729.8

 
16.2
%
Closed Block
 
21.8

 
2,998.2

 
 
Corporate
 
(20.5
)
 
(586.8
)
 
 
Total
 
$
233.0

 
$
8,141.2

 
11.5
%

(1) Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented on page 16.4.



 
16. 2
 



Reconciliation of Non-GAAP Financial Measures - Continued

 
 
 
 
 
 
Annualized
 
 
After-Tax
 
 Average
 
Operating
 
 
Operating
 
 Allocated
 
Return
 
 
Income (Loss)
 
 Equity(1)
 
On Equity
Six Months Ended June 30, 2017
 
 
 
 
 
 
Unum US
 
$
318.1

 
$
4,078.0

 
15.6
%
Unum UK
 
45.7

 
588.7

 
15.5
%
Colonial Life
 
107.1

 
1,233.2

 
17.4
%
Core Operating Segments
 
470.9

 
5,899.9

 
16.0
%
Closed Block
 
43.3

 
3,195.7

 
 
Corporate
 
(37.7
)
 
(768.7
)
 
 
Total
 
$
476.5

 
$
8,326.9

 
11.4
%
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 
 
 
 
 
 
Unum US
 
$
289.7

 
$
3,937.9

 
14.7
%
Unum UK
 
60.8

 
621.5

 
19.6
%
Colonial Life
 
101.3

 
1,148.5

 
17.6
%
Core Operating Segments
 
451.8

 
5,707.9

 
15.8
%
Closed Block
 
44.4

 
2,992.3

 
 
Corporate
 
(39.0
)
 
(583.2
)
 
 
Total
 
$
457.2

 
$
8,117.0

 
11.3
%

(1) Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented on page 16.4.

16. 3



Reconciliation of Non-GAAP Financial Measures - Continued

 
 
After-Tax
 
 Average
 
Operating
 
 
Operating
 
 Allocated
 
Return
 
 
Income (Loss)
 
 Equity(2)
 
On Equity
Year Ended December 31, 2016
 
 
 
 
 
 
Unum US
 
$
598.3

 
$
3,992.2

 
15.0
%
Unum UK
 
113.8

 
610.6

 
18.6
%
Colonial Life
 
204.9

 
1,173.9

 
17.4
%
Core Operating Segments
 
917.0

 
5,776.7

 
15.9
%
Closed Block
 
87.0

 
3,055.1

 
 
Corporate
 
(88.4
)
 
(691.0
)
 
 
Total
 
$
915.6

 
$
8,140.8

 
11.2
%
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
Unum US
 
$
557.5

 
$
4,197.8

 
13.3
%
Unum UK
 
116.9

 
650.6

 
18.0
%
Colonial Life
 
201.1

 
1,209.4

 
16.6
%
Core Operating Segments
 
875.5

 
6,057.8

 
14.5
%
Closed Block
 
79.0

 
2,989.2

 
 
Corporate
 
(61.3
)
 
(1,085.9
)
 
 
Total
 
$
893.2

 
$
7,961.1

 
11.2
%

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

Average allocated equity is computed as follows:
 
6/30/2017
 
3/31/2017
 
12/31/2016
 
6/30/2016
 
3/31/2016
 
12/31/2015
 
12/31/2014
Total Stockholders' Equity, As Reported
$
9,316.6

 
$
9,107.4

 
$
8,968.0

 
$
9,157.0

 
$
8,920.3

 
$
8,663.9

 
$
8,521.9

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Unrealized Gain on Securities
558.2

 
483.0

 
440.6

 
661.1

 
438.4

 
204.3

 
290.3

Net Gain on Cash Flow Hedges
304.5

 
316.8

 
327.5

 
343.6

 
351.8

 
378.0

 
391.0

Total Stockholders' Equity, as Adjusted
$
8,453.9

 
$
8,307.6

 
$
8,199.9

 
$
8,152.3

 
$
8,130.1

 
$
8,081.6

 
$
7,840.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
Twelve Months Ended
 
Three Months Ended
 
Six Months Ended
 
Twelve Months Ended
 
 
 
6/30/2017
 
12/31/2016
 
6/30/2016
 
12/31/2015
 
 
Average Stockholders' Equity Excluding Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges
$
8,380.8

 
$
8,326.9

 
$
8,140.8

 
$
8,141.2

 
$
8,117.0

 
$
7,961.1

 
 

16. 4



Reconciliation of Non-GAAP Financial Measures - Continued

 
Three Months Ended June 30
 
Six Months Ended June 30
 
2017
 
2016
 
2017
 
2016
 
(in millions)
 
per share *
 
(in millions)
 
per share *
 
(in millions)
 
per share *
 
(in millions)
 
per share *
Net Income
$
245.1

 
$
1.07

 
$
236.8

 
$
1.00

 
$
475.0

 
$
2.07

 
$
447.4

 
$
1.87

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $3.4; $1.5; $7.2; $(5.4))
4.7

 
0.02

 
3.8

 
0.02

 
11.9

 
0.05

 
(9.8
)
 
(0.05
)
Loss from Guaranty Fund Assessment (net of tax benefit of $-; $-; $7.2; $-)

 

 

 

 
(13.4
)
 
(0.06
)
 

 

After-tax Operating Income
$
240.4

 
$
1.05

 
$
233.0

 
$
0.98

 
$
476.5

 
$
2.08

 
$
457.2

 
$
1.92

 
Year Ended December 31
 
2016
 
2015
 
(in millions)
 
per share *
 
(in millions)
 
per share *
Net Income
$
931.4

 
$
3.95

 
$
867.1

 
$
3.50

Excluding:
 
 
 
 
 
 
 
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $8.4; $(17.7))
15.8

 
0.07

 
(26.1
)
 
(0.11
)
After-tax Operating Income
$
915.6

 
$
3.88

 
$
893.2

 
$
3.61

 
 
 
 
 
 
 
 
* Assuming Dilution
 
 
 
 
 
 
 
 
June 30
 
December 31
 
2017
 
2016
 
2016
 
2015
Debt, As Reported
$
2,968.4

 
$
3,393.3

 
$
2,999.4

 
$
2,801.4

Excluding:
 
 
 
 
 
 
 
Non-recourse Debt
225.5

 
294.5

 
255.0

 
324.0

Debt, As Adjusted
$
2,742.9

 
$
3,098.8

 
$
2,744.4

 
$
2,477.4

 
 
 
 
 
 
 
 
Total Stockholders' Equity, As Reported
$
9,316.6

 
$
9,157.0

 
$
8,968.0

 
$
8,663.9

Excluding:
 
 
 
 
 
 
 
Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges
862.7

 
1,004.7

 
768.1

 
582.3

Northwind Capital
870.3

 
859.2

 
862.6

 
844.6

Equity, As Adjusted
7,583.6

 
7,293.1

 
7,337.3

 
7,237.0

Debt, As Adjusted
2,742.9

 
3,098.8

 
2,744.4

 
2,477.4

Total Capital, As Adjusted
$
10,326.5

 
$
10,391.9

 
$
10,081.7

 
$
9,714.4

 
 
 
 
 
 
 
 
Leverage Ratio
26.6
%
 
29.8
%
 
27.2
%
 
25.5
%

16. 5



Reconciliation of Non-GAAP Financial Measures - Continued

 
 
 
Three months ended June 30
 
2017
 
2016
 
% Change
Premium Income
 
 
 
 
 
Unum US
$
1,357.7

 
$
1,299.4

 
4.5
 %
Unum UK
126.8

 
140.8

 
(9.9
)
Colonial Life
376.3

 
351.4

 
7.1

Premium Income from Core Operating Segments, As Reported
1,860.8

 
1,791.6

 
3.9

Excluding:
 
 
 
 
 
Translation of Unum UK Premium Income at Prior Period Weighted Average Pound/Dollar Exchange Rate of 1.436
15.5

 

 

Premium Income Ceded in Individual Disability Reinsurance Agreement
23.7

 

 

Premium Income from Core Operating Segments, As Adjusted
$
1,900.0

 
$
1,791.6

 
6.1
 %

16. 6
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