Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

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

Segment information is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
	(in millions of dollars)
Premium Income
Unum US
Group Disability
Group Long-term Disability	$	474.4	$	458.6	$	938.3	$	916.3
Group Short-term Disability	232.1		213.6		453.7		428.8
Group Life and Accidental Death & Dismemberment
Group Life	419.6		414.6		832.2		824.6
Accidental Death & Dismemberment	43.8		42.0		85.9		83.4
Supplemental and Voluntary
Voluntary Benefits	215.7		212.1		436.2		430.8
Individual Disability	117.8		113.6		231.4		229.3
Dental and Vision	68.9		67.6		139.5		134.7
	1,572.3		1,522.1		3,117.2		3,047.9
Unum International
Unum UK
Group Long-term Disability	94.3		105.1		197.7		202.2
Group Life	33.3		28.0		65.5		55.3
Supplemental	29.4		27.9		58.4		55.9
Unum Poland	22.4		22.5		45.6		44.5
	179.4		183.5		367.2		357.9
Colonial Life
Accident, Sickness, and Disability	238.2		236.4		477.9		477.1
Life	101.3		96.1		203.0		192.7
Cancer and Critical Illness	88.1		87.2		177.4		176.3
	427.6		419.7		858.3		846.1
Closed Block
Long-term Care	173.7		174.9		348.5		352.3
Individual Disability	62.4		72.4		125.8		144.5
All Other	1.9		1.8		3.6		4.0
	238.0		249.1		477.9		500.8
Total Premium Income	$	2,417.3	$	2,374.4	$	4,820.6	$	4,752.7

	Unum US		Unum International		Colonial Life		Closed Block		Corporate		Total
	(in millions of dollars)
Three Months Ended June 30, 2022
Premium Income	$	1,572.3	$	179.4	$	427.6	$	238.0	$	—	$	2,417.3
Net Investment Income	167.8		50.8		38.7		291.5		10.2		559.0
Other Income	50.7		0.3		0.2		16.5		1.0		68.7
Adjusted Operating Revenue	$	1,790.8	$	230.5	$	466.5	$	546.0	$	11.2	$	3,045.0
Adjusted Operating Income (Loss)	$	295.4	$	24.9	$	101.1	$	79.3	$	(36.9)	$	463.8
Three Months Ended June 30, 2021
Premium Income	$	1,522.1	$	183.5	$	419.7	$	249.1	$	—	$	2,374.4
Net Investment Income	183.6		35.7		41.6		294.7		7.9		563.5
Other Income	41.3		0.1		0.3		12.1		0.4		54.2
Adjusted Operating Revenue	$	1,747.0	$	219.3	$	461.6	$	555.9	$	8.3	$	2,992.1
Adjusted Operating Income (Loss)	$	179.3	$	24.8	$	95.8	$	111.2	$	(48.5)	$	362.6

	Unum US		Unum International		Colonial Life		Closed Block		Corporate		Total
	(in millions of dollars)
Six Months Ended June 30, 2022
Premium Income	$	3,117.2	$	367.2	$	858.3	$	477.9	$	—	$	4,820.6
Net Investment Income	338.8		85.3		76.8		566.3		19.0		1,086.2
Other Income	97.8		0.5		0.5		32.5		3.2		134.5
Adjusted Operating Revenue	$	3,553.8	$	453.0	$	935.6	$	1,076.7	$	22.2	$	6,041.3
Adjusted Operating Income (Loss)	$	467.0	$	52.1	$	191.2	$	173.4	$	(77.3)	$	806.4
Six Months Ended June 30, 2021
Premium Income	$	3,047.9	$	357.9	$	846.1	$	500.8	$	—	$	4,752.7
Net Investment Income	363.3		61.7		79.3		591.9		16.0		1,112.2
Other Income	81.7		0.2		0.5		30.5		1.7		114.6
Adjusted Operating Revenue	$	3,492.9	$	419.8	$	925.9	$	1,123.2	$	17.7	$	5,979.5
Adjusted Operating Income (Loss)	$	295.0	$	51.2	$	169.1	$	208.2	$	(87.4)	$	636.1

	June 30		December 31
	2022		2021
	(in millions of dollars)
Assets
Unum US	$	16,743.8	$	18,696.3
Unum International	3,386.8		4,086.5
Colonial Life	4,594.7		4,895.9
Closed Block	34,439.3		38,287.9
Corporate	3,956.5		4,149.0
Total Assets	$	63,121.1	$	70,115.6

We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted 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 investment gains and losses and the amortization of the cost of reinsurance as well as certain other items as specified in the reconciliations below. We believe adjusted operating revenue and adjusted operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income. 

Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. 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 investment gains or losses. Although we may experience 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 have exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that was recognized as a result of the exit of the business related to the DLR cohort of policies. We believe that the exclusion of the amortization of the cost of reinsurance provides a better view of our results from our ongoing businesses. See Note 12 for further discussion regarding the total impacts of the Closed Block individual disability reinsurance transaction and the amortization of the cost of reinsurance.

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.

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

	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
	(in millions of dollars)
Total Revenue	$	3,040.9	$	2,993.0	$	6,023.4	$	6,065.0
Excluding:
Net Investment Gain (Loss)	(4.1)		0.9		(17.9)		85.5
Adjusted Operating Revenue	$	3,045.0	$	2,992.1	$	6,041.3	$	5,979.5
Income Before Income Tax	$	443.1	$	262.6	$	755.2	$	461.4
Excluding:
Net Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance Transaction	—		—		—		67.6
Net Investment Gain (Loss), Other	(4.1)		0.9		(17.9)		17.9
Total Net Investment Gain (Loss)	(4.1)		0.9		(17.9)		85.5
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs	—		—		—		(139.3)
Amortization of the Cost of Reinsurance	(16.6)		(19.7)		(33.3)		(39.7)
Total Items Related to Closed Block Individual Disability Reinsurance Transaction	(16.6)		(19.7)		(33.3)		(179.0)
Cost Related to Early Retirement of Debt	—		(67.3)		—		(67.3)
Impairment Loss on ROU Asset	—		(13.9)		—		(13.9)
Adjusted Operating Income	$	463.8	$	362.6	$	806.4	$	636.1