Unum Group (NYSE: UNM) today reported a net loss of $279.1 million
($1.11 per common share) for the fourth quarter of 2014, compared to net
income of $221.2 million ($0.84 per common share) for the fourth quarter
of 2013.
Included in the net loss for the fourth quarter of 2014 is an after-tax
reserve charge of $453.8 million ($1.80 per common share) in the
long-term care closed block, as well as the amortization of prior period
actuarial losses on the Company’s pension plans, a settlement loss from
a pension plan amendment, and a net realized investment loss, the
combined impact of which resulted in an after-tax loss of $54.1 million
($0.21 per common share). The fourth quarter of 2013 included reserve
adjustments for a reserve increase related to unclaimed death benefits
($62.1 million after-tax, or $0.24 per common share) and a reserve
reduction related to group life waiver of premium benefits ($55.2
million after-tax, or $0.21 per common share), as well as a net realized
investment gain and a non-operating retirement-related loss, the
combined impact of which resulted in a net after-tax gain of $4.3
million ($0.02 per common share). Additional details regarding the
long-term care closed block reserve charge and pension plan amendment
loss are included in the Other Information section of this release.
Adjusting for the items above, operating income on an after-tax basis
was $228.8 million ($0.90 per common share) in the fourth quarter of
2014, compared to $223.8 million ($0.85 per common share) in the fourth
quarter of 2013.
“I am very pleased with the way we finished 2014, with continued solid
margins in our core businesses and one of the strongest quarterly
premium growth rates we’ve seen in many years,” said Thomas R. Watjen,
president and chief executive officer. “Our top line growth was driven
by a balance of strong sales results, solid persistency and continued
success with our ongoing renewal and re-pricing actions. Today’s low
interest rate environment, though, creates significant challenges for us
and for our industry, and we are taking the steps within our core
businesses to maintain the solid margins and financial flexibility we’ve
worked so hard to attain. In our Closed Block, we strengthened our
long-term care reserves this quarter to better position this business
for a sustained, difficult environment.”
RESULTS BY SEGMENT
Unum US Segment
Unum US reported operating income of $212.4 million in the fourth
quarter of 2014, compared to operating income of $226.7 million in the
fourth quarter of 2013. The year ago results included an adjustment to
the unclaimed death benefit reserve and a reserve reduction related to
group life waiver of premium benefits totaling $9.6 million before
taxes. Excluding these reserve adjustments, the Unum US segment reported
operating income of $217.1 million for the fourth quarter of 2013.
Premium income for the segment increased 5.8 percent to $1,186.8 million
in the fourth quarter of 2014, compared to premium income of $1,121.3
million in the fourth quarter of 2013.
Within the Unum US operating segment, the group disability line of
business reported a 3.2 percent decline in operating income, with $66.7
million in the fourth quarter of 2014 compared to $68.9 million in the
fourth quarter of 2013. Premium income in group disability increased 5.7
percent to $540.8 million in the fourth quarter of 2014, compared to
$511.4 million in the fourth quarter of 2013, primarily due to favorable
persistency, premium rate increases, and improved sales growth in recent
quarters. Net investment income declined marginally to $132.9 million in
the fourth quarter of 2014, compared to $133.9 million in the fourth
quarter of 2013, primarily due to a decrease in the level of invested
assets supporting this line of business and a decline in yields, which
were partially offset by higher miscellaneous net investment income. The
benefit ratio for the fourth quarter of 2014 was 83.7 percent, compared
to 83.2 percent in the fourth quarter of 2013, primarily reflecting the
impact of a reduction of 50 basis points to the group long-term
disability new claim discount rate. Group long-term disability sales
increased 38.7 percent to $116.1 million in the fourth quarter of 2014,
compared to $83.7 million in the fourth quarter of 2013. Group
short-term disability sales increased 10.1 percent to $60.1 million in
the fourth quarter of 2014, compared to $54.6 million in the fourth
quarter of 2013. Persistency in the group long-term disability line of
business improved to 90.6 percent for full year 2014, compared to 87.2
percent for full year 2013. Persistency in the group short-term
disability line of business was 89.6 percent for full year 2014,
compared to 88.0 percent for full year 2013.
The group life and accidental death and dismemberment line of business
reported operating income of $60.4 million in the fourth quarter of
2014, compared to $98.3 million in the fourth quarter of 2013, including
the $35.9 million net adjustment related to the unclaimed death benefits
reserve and the group life waiver reserve. Excluding these reserve
adjustments, operating income was $62.4 million for the fourth quarter
of 2013. Premium income for this line of business increased 6.7 percent
to $355.1 million in the fourth quarter of 2014, compared to $332.9
million in the fourth quarter of 2013, reflecting higher sales trends in
recent quarters and improved persistency. The benefit ratio in the
fourth quarter of 2014 was 70.8 percent, compared to 59.2 percent in the
fourth quarter of 2013. Excluding the reserve adjustments previously
noted the benefit ratio was 70.0 percent for the fourth quarter of 2013.
Sales of group life and accidental death and dismemberment products
increased 26.8 percent in the fourth quarter of 2014 to $127.6 million,
compared to $100.6 million in the fourth quarter of 2013. Persistency in
the group life line of business improved to 90.8 percent for full year
2014, compared to 88.1 percent for full year 2013.
The supplemental and voluntary line of business reported operating
income of $85.3 million in the fourth quarter of 2014, compared to $59.5
million in the fourth quarter of 2013, including an adjustment to the
unclaimed death benefit reserve of $26.3 million. Excluding this reserve
adjustment, this line of business reported operating income of $85.8
million for the fourth quarter of 2013. Premium income for supplemental
and voluntary increased 5.0 percent to $290.9 million in the fourth
quarter of 2014, compared to $277.0 million in the fourth quarter of
2013. Net investment income declined by 4.1 percent to $58.0 million in
the fourth quarter of 2014 compared to $60.5 million in the fourth
quarter of 2013 due to a decrease in yield on invested assets and lower
miscellaneous net investment income, partially offset by an increase in
the level of invested assets. The interest adjusted loss ratio for the
individual disability product line in the fourth quarter of 2014 was
30.8 percent compared to 30.7 percent in the fourth quarter of 2013,
reflecting generally stable claim experience. The benefit ratio for
voluntary benefits was 46.2 percent in the fourth quarter of 2014,
compared to 66.1 percent in the fourth quarter of 2013, or 49.8 percent
excluding the reserve adjustment previously noted, reflecting favorable
experience in the disability and life product lines. Relative to the
fourth quarter of 2013, sales in the voluntary benefits line of business
increased 20.8 percent in the fourth quarter of 2014 to $48.8 million.
Sales in the individual disability line of business increased 3.2
percent in the fourth quarter of 2014 to $16.1 million. Persistency in
the individual disability product line was 90.0 percent for full year
2014, compared to 90.5 percent for full year 2013. Persistency in the
voluntary benefits product line was 77.6 percent for full year 2014,
compared to 77.0 percent for full year 2013.
Unum UK Segment
Unum UK reported operating income of $38.2 million in the fourth quarter
of 2014, an increase of 6.4 percent from $35.9 million in the fourth
quarter of 2013. In local currency, operating income increased by 8.6
percent for the fourth quarter of 2014 to £24.1 million, compared to
£22.2 million in the fourth quarter of 2013.
Premium income increased 8.0 percent to $148.9 million in the fourth
quarter of 2014, compared to $137.9 million in the fourth quarter of
2013. In local currency, premium income increased 10.5 percent to £94.0
million in the fourth quarter of 2014, compared to £85.1 million in the
fourth quarter of 2013, reflecting an increased retention level in our
reinsurance program for certain of our group life products as well as
premium rate increases and improved persistency. The benefit ratio in
the fourth quarter of 2014 was 68.9 percent, compared to 73.0 percent in
the fourth quarter of 2013, reflecting growth in premium income and
favorable risk experience in the group long-term disability and group
life lines of business.
Persistency in the group long-term disability line of business improved
to 90.1 percent for full year 2014, compared to 82.2 percent for full
year 2013. Persistency in the group life line of business improved to
76.0 percent for full year 2014, compared to 66.7 percent for full year
2013. Sales increased 24.0 percent to $25.3 million in the fourth
quarter of 2014, compared to $20.4 million in the fourth quarter of
2013. In local currency, sales for the fourth quarter of 2014 increased
27.8 percent to £16.1 million, compared to £12.6 million in the fourth
quarter of 2013.
Colonial Life Segment
Colonial Life reported operating income of $74.3 million in the fourth
quarter of 2014, compared to $49.3 million in the fourth quarter of
2013, including an adjustment to the unclaimed death benefit reserve of
$20.1 million. Excluding this reserve adjustment, the Colonial Life
segment reported operating income of $69.4 million for the fourth
quarter of 2013.
Premium income for the fourth quarter of 2014 increased 4.2 percent to
$321.1 million, compared to $308.1 million in the fourth quarter of
2013, driven by strong sales growth and improved persistency. Net
investment income increased to $37.9 million in the fourth quarter of
2014, compared to $35.1 million in the fourth quarter of 2013,
reflecting higher miscellaneous net investment income and higher levels
of invested assets, partially offset by a decline in the portfolio
yield. The benefit ratio in the fourth quarter of 2014 was 52.3 percent,
compared to 58.9 percent in the fourth quarter of 2013, or 52.4 percent
excluding the reserve adjustment previously noted. The relatively stable
benefit ratio reflected improved claims experience in the cancer and
critical illness product line which offset less favorable experience in
the life and accident, sickness, and disability product lines.
Sales increased 15.7 percent to $161.7 million in the fourth quarter of
2014 from $139.8 million in the fourth quarter of 2013, with strong
sales trends in both the core commercial and public sector market
segments.
Closed Block Segment
The Closed Block segment reported an operating loss of $668.2 million in
the fourth quarter of 2014, compared to operating income of $26.8
million in the fourth quarter of 2013. Excluding the before-tax reserve
charge of $698.2 million for the long-term care business, the Closed
Block segment reported operating income of $30.0 million in the fourth
quarter of 2014.
Premium income for this segment declined 3.8 percent in the fourth
quarter of 2014 compared to the fourth quarter of 2013, primarily due to
expected policy terminations and maturities. Net investment income
declined by 1.3 percent to $323.6 million in the fourth quarter of 2014,
compared to $327.7 million in the fourth quarter of 2013, primarily due
to a decline in yields and lower miscellaneous net investment income
which was partially offset by an increase in the level of invested
assets supporting this segment. The interest adjusted loss ratio for the
individual disability line of business was 81.0 percent in the fourth
quarter of 2014, compared to 85.7 percent in the fourth quarter of 2013,
reflecting slightly lower new claim incidence in the fourth quarter of
2014 and a slight reduction in the claim reserve discount rate in the
fourth quarter of 2013. The interest adjusted loss ratio for the
long-term care line of business was 89.6 percent in the fourth quarter
of 2014, excluding the reserve charge, compared to 89.3 percent in the
fourth quarter of 2013.
Corporate Segment
The Corporate segment reported an operating loss of $31.5 million for
the fourth quarter of 2014 and a loss of $39.8 million for the fourth
quarter of 2013.
OTHER INFORMATION
Long-term Care Closed Block Reserve Charge
Policy reserves for the long-term care block of business are determined
using the gross premium valuation method and, prior to the fourth
quarter of 2014, were valued based on assumptions established as of
December 31, 2011, the date of the initial loss recognition. Gross
premium valuation assumptions do not change after the date of loss
recognition unless reserves are again determined to be deficient. The
Company undertakes a review of policy reserve adequacy annually during
the fourth quarter of each year, or more frequently if appropriate,
using best estimate assumptions as of the date of the review.
Included in the fourth quarter of 2014 review was an analysis of the
reserve discount rate, mortality, morbidity, persistency, and premium
rate increase assumptions. The analysis of reserve discount rate
assumptions considered the continued historic low interest rate
environment, future market expectations, and the Company’s view of
future portfolio yields. The assumptions established in 2011 were set at
a level that the Company estimated would be sustainable in a low
interest rate environment for three to five years, with improvements in
market yields beginning after the third year. Since that time, however,
interest rates have continued to hover near historic lows, and credit
spreads have tightened. The Company’s assumption update for mortality
incorporates the last three years of Company-specific experience and
emerging trends as well as industry data, where available and
appropriate, and reflects improvements in life expectancies beyond what
was initially anticipated in 2011. Morbidity assumptions were updated to
reflect trends from the Company’s own emerging experience in claim
incidence and terminations, as well as trends based on available and
appropriate industry data and studies. Premium rate increase assumptions
were updated to reflect progress-to-date and the Company’s on-going rate
increase strategy.
Based on the Company’s analysis, as of December 31, 2014 the Company
lowered the discount rate assumption to reflect the low interest rate
environment and our revised expectation of future investment portfolio
yield rates. The Company’s revised assumptions anticipate the low
interest rate environment persisting for the next three to five years,
with a return to more historical averages over the following five year
period. The Company updated its mortality assumptions to reflect
emerging experience due to an increase in life expectancies which
increases the ultimate number of people who will utilize long-term care
benefits and also lengthens the amount of time a claimant may receive
long-term care benefits. Morbidity assumptions were changed to reflect
emerging industry experience as well as the Company’s own experience,
and the projection of future premium rate increase approvals was
updated. Using revised best estimate assumptions, as of December 31,
2014 the Company determined that policy and claim reserves should be
increased $698.2 million to reflect the current estimate of future
benefit obligations. This charge decreased fourth quarter of 2014 net
income $453.8 million.
Settlement Loss from Pension Plan Amendment
In September 2014, the Company amended its U.S. qualified defined
benefit pension plan to allow a limited-time offer of benefit payouts to
eligible former employees with a vested right to a pension benefit. The
offer provided eligible former employees, regardless of age, with an
option to elect to receive a lump-sum settlement of his or her entire
accrued pension benefit in December 2014 or to elect receipt of monthly
pension benefits commencing in January 2015. The Company accounted for
the lump-sum payouts as settlements and recognized a loss of $64.4
million before tax, or $41.9 million after tax, during the fourth
quarter of 2014.
Capital Management
At December 31, 2014, the weighted average risk-based capital ratio for
the Company’s traditional U.S. insurance companies was in excess of 400
percent, and cash and marketable securities in the holding companies
equaled $575 million.
Book Value
Book value per common share as of December 31, 2014 was $33.90, compared
to $33.30 at December 31, 2013.
Outlook
The Company anticipates growth in after-tax operating earnings per share
for full-year 2015 to be in the outlook range announced in December 2014
of two percent to five 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 measures of “operating revenue,” “before-tax operating income”
or “before-tax operating loss,” “after-tax operating income,” and
“after-tax operating loss” differ from total revenue, income (loss)
before income tax, and net income (loss) as presented in our
consolidated operating results and in income statements prepared in
accordance with GAAP due to the exclusion of net realized investment
gains and losses, non-operating retirement-related gains or losses, and
certain other items as specified in the reconciliations below. We
believe operating revenue and operating income or loss are better
performance measures and better indicators of the revenue and
profitability and underlying trends in our business.
Realized investment gains or losses depend on market conditions and do
not necessarily relate to decisions regarding the underlying business of
our segments. Our investment focus is on investment income to support
our insurance liabilities as opposed to the generation of realized
investment gains or losses. Although we may experience realized
investment gains or losses which will affect future earnings levels, a
long-term focus is necessary to maintain profitability over the life of
the business since our underlying business is long-term in nature, and
we need to earn the interest rates assumed in calculating our
liabilities.
The amortization of prior period actuarial gains or losses, a component
of the net periodic benefit cost for our pensions and other
postretirement benefit plans, is driven by market performance as well as
plan amendments and is not indicative of the operational results of our
businesses. We believe that excluding the amortization of prior period
gains or losses, as well as the settlement loss from our pension plan
amendment, from operating income or loss provides investors with
additional information for comparison and analysis of our operating
results. Although we manage our non-operating retirement-related gains
or losses separately from the operational performance of our business,
these gains or losses impact the overall profitability of our company
and have historically increased or decreased over time, depending on
plan amendments and market conditions and the resulting impact on the
actuarial gains or losses in our pensions and other postretirement
benefit plans.
We believe that excluding the 2014 costs related to the early retirement
of debt is appropriate because in conjunction with the debt redemption,
we recognized in realized investment gains and losses a deferred gain
from previously terminated derivatives which were associated with the
hedge of this debt. The amount recognized as a realized investment gain,
which basically offsets the cost of the debt redemption, is also
excluded from our non-GAAP financial measures since we analyze our
performance excluding amounts reported as realized investment gains or
losses. We believe it provides investors with a more realistic view of
our overall profitability if we are consistent in excluding both the
cost of the debt retirement as well as the gain on the hedge of the debt.
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.
CONFERENCE CALL INFORMATION
Members of Unum Group senior management will host a conference call on
Wednesday, February 4 at 10:00 A.M. (Eastern Time) to discuss the
results of operations for the fourth 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 (800) 289-0463 for U.S.
and Canada (pass code 9665135). For international, the dial-in number is
(913) 312-0407 (pass code 9665135). 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 Wednesday,
February 11. 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 9665135.
In conjunction with today’s earnings announcement, the Company’s
Statistical Supplement for the fourth quarter of 2014 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) unfavorable economic or business
conditions, both domestic and foreign; (2) sustained periods of low
interest rates; (3) fluctuation in insurance reserve liabilities and
claim payments due to changes in claim incidence, recovery rates,
mortality rates, and 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; (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 liabilities; (6) the failure of cyber or
other information security systems, as well as the occurrence of events
unanticipated in our disaster recovery systems; (7) 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; (8) increased
competition from other insurers and financial services companies due to
industry consolidation, new entrants to our markets, or other factors;
(9) changes in our financial strength and credit ratings; (10) damage to
our reputation due to, among other factors, regulatory investigations,
legal proceedings, external events, and/or inadequate or failed internal
controls and procedures; (11) actual experience that deviates from our
assumptions used in pricing, underwriting, and reserving; (12) actual
persistency and/or sales growth that is higher or lower than projected;
(13) 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; (14) effectiveness of our risk management program;
(15) contingencies and the level and results of litigation; (16) changes
in accounting standards, practices, or policies; (17) fluctuation in
foreign currency exchange rates; (18) ability to generate sufficient
internal liquidity and/or obtain external financing; (19) availability
of reinsurance in the market and the ability of our reinsurers to meet
their obligations to us; (20) recoverability and/or realization of the
carrying value of our intangible assets, long-lived assets, and deferred
tax assets; and (21) 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 about risks and uncertainties which could cause
actual results to differ from those contained in the forward-looking
statements, see Part I, Item 1A of our annual report on Form 10-K for
the year ended December 31, 2013, and our subsequently filed Forms 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.
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Unum Group
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FINANCIAL HIGHLIGHTS
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(Unaudited)
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($ in millions, except share data)
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Three Months Ended December 31
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Twelve Months Ended December 31
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2014
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2013
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2014
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2013
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Operating Revenue
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$
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2,653.0
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$
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2,576.9
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$
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10,493.6
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$
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10,347.0
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Net Realized Investment Gain (Loss)
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(17.3
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)
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|
9.3
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16.1
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6.8
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Total Revenue
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$
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2,635.7
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$
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2,586.2
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$
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10,509.7
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$
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10,353.8
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Operating Income
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$
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323.4
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$
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309.4
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$
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1,292.5
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$
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1,241.8
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Net Realized Investment Gain (Loss)
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(17.3
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)
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9.3
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16.1
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6.8
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Non-operating Retirement-related Loss
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(65.8
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)
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(2.4
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)
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(70.0
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)
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(32.9
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)
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Costs Related to Early Retirement of Debt
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-
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-
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(13.2
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)
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-
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Long-term Care Reserve Increase
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(698.2
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)
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-
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(698.2
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)
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|
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-
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Unclaimed Death Benefits Reserve Increase
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|
|
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-
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|
|
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(95.5
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)
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-
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|
|
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(95.5
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)
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Group Life Waiver of Premium Benefit Reserve Reduction
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|
|
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-
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|
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85.0
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-
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85.0
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Income Tax (Benefit)
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|
|
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178.8
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(84.6
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)
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|
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(113.8
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)
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(347.1
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)
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Net Income (Loss)
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$
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(279.1
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)
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$
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221.2
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$
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413.4
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|
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$
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858.1
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PER SHARE INFORMATION
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Net Income (Loss) Per Common Share
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
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$
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(1.11
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)
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|
|
$
|
0.85
|
|
|
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$
|
1.62
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|
|
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$
|
3.24
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Assuming Dilution
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|
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$
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(1.11
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)
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|
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$
|
0.84
|
|
|
|
$
|
1.61
|
|
|
|
$
|
3.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares - Basic (000s)
|
|
|
|
252,422.6
|
|
|
|
|
261,147.6
|
|
|
|
|
255,525.9
|
|
|
|
|
264,725.8
|
|
Weighted Average Common Shares - Assuming Dilution (000s)
|
|
|
|
252,422.6
|
|
|
|
|
262,557.9
|
|
|
|
|
256,652.8
|
|
|
|
|
265,949.2
|
|
Outstanding Shares - (000s)
|
|
|
|
|
|
|
|
|
|
252,309.7
|
|
|
|
|
260,017.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
per share
|
|
|
|
|
|
per share *
|
After-tax Operating Income
|
|
|
$
|
228.8
|
|
|
|
$
|
0.90
|
|
|
|
$
|
223.8
|
|
|
|
$
|
0.85
|
|
Net Realized Investment Gain (Loss), Net of Tax
|
|
|
|
(11.2
|
)
|
|
|
|
(0.04
|
)
|
|
|
|
5.8
|
|
|
|
|
0.02
|
|
Non-operating Retirement-related Loss, Net of Tax
|
|
|
|
(42.9
|
)
|
|
|
|
(0.17
|
)
|
|
|
|
(1.5
|
)
|
|
|
|
-
|
|
Long-term Care Reserve Increase, Net of Tax
|
|
|
|
(453.8
|
)
|
|
|
|
(1.80
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Unclaimed Death Benefits Reserve Increase, Net of Tax
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(62.1
|
)
|
|
|
|
(0.24
|
)
|
Group Life Waiver of Premium Benefit Reserve Reduction, Net of Tax
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
55.2
|
|
|
|
|
0.21
|
|
Net Income (Loss)
|
|
|
$
|
(279.1
|
)
|
|
|
$
|
(1.11
|
)
|
|
|
$
|
221.2
|
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
per share *
|
|
|
|
|
|
per share *
|
After-tax Operating Income
|
|
|
$
|
910.4
|
|
|
|
$
|
3.55
|
|
|
|
$
|
882.5
|
|
|
|
$
|
3.32
|
|
Net Realized Investment Gain, Net of Tax
|
|
|
|
12.8
|
|
|
|
|
0.05
|
|
|
|
|
3.9
|
|
|
|
|
0.02
|
|
Non-operating Retirement-related Loss, Net of Tax
|
|
|
|
(45.6
|
)
|
|
|
|
(0.18
|
)
|
|
|
|
(21.4
|
)
|
|
|
|
(0.08
|
)
|
Costs Related to Early Retirement of Debt, Net of Tax
|
|
|
|
(10.4
|
)
|
|
|
|
(0.04
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Long-term Care Reserve Increase, Net of Tax
|
|
|
|
(453.8
|
)
|
|
|
|
(1.77
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Unclaimed Death Benefits Reserve Increase, Net of Tax
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(62.1
|
)
|
|
|
|
(0.24
|
)
|
Group Life Waiver of Premium Benefit Reserve Reduction, Net of Tax
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
55.2
|
|
|
|
|
0.21
|
|
Net Income
|
|
|
$
|
413.4
|
|
|
|
$
|
1.61
|
|
|
|
$
|
858.1
|
|
|
|
$
|
3.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Assuming Dilution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unum US
|
|
|
|
|
|
|
|
|
|
Group Life and Accidental
|
|
|
Unum US
|
|
|
|
Death and Dismemberment
|
|
|
Voluntary Benefits
|
|
|
|
|
|
|
benefit ratio
|
|
|
|
|
|
benefit ratio
|
Three Months Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium Income
|
|
|
$
|
332.9
|
|
|
|
|
|
|
$
|
161.0
|
|
|
|
|
Benefits and Change in Reserves for Future Benefits
|
|
|
|
197.0
|
|
|
|
|
59.2
|
%
|
|
|
|
106.4
|
|
|
|
|
66.1
|
%
|
Unclaimed Death Benefits Reserve Increase
|
|
|
|
(49.1
|
)
|
|
|
|
|
|
|
(26.3
|
)
|
|
|
|
Group Life Waiver of Premium Benefit Reserve Reduction
|
|
|
|
85.0
|
|
|
|
|
|
|
|
-
|
|
|
|
|
Benefits and Change in Reserves for Future Benefits, Excluding
Reserve Adjustments
|
|
|
|
232.9
|
|
|
|
|
70.0
|
%
|
|
|
|
80.1
|
|
|
|
|
49.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colonial Life
|
|
|
|
|
|
|
|
|
|
|
|
|
benefit ratio
|
|
|
|
|
|
|
Three Months Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium Income
|
|
|
$
|
308.1
|
|
|
|
|
|
|
|
|
|
|
Benefits and Change in Reserves for Future Benefits
|
|
|
|
181.4
|
|
|
|
|
58.9
|
%
|
|
|
|
|
|
|
Unclaimed Death Benefits Reserve Increase
|
|
|
|
(20.1
|
)
|
|
|
|
|
|
|
|
|
|
Benefits and Change in Reserves for Future Benefits, Excluding
Reserve Adjustment
|
|
|
|
161.3
|
|
|
|
|
52.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
per share
|
|
|
|
|
|
per share
|
Total Stockholders' Equity (Book Value)
|
|
|
$
|
8,552.4
|
|
|
|
$
|
33.90
|
|
|
|
$
|
8,659.1
|
|
|
|
$
|
33.30
|
|
Net Unrealized Gain on Securities
|
|
|
|
290.3
|
|
|
|
|
1.15
|
|
|
|
|
135.7
|
|
|
|
|
0.52
|
|
Net Gain on Cash Flow Hedges
|
|
|
|
391.0
|
|
|
|
|
1.55
|
|
|
|
|
396.3
|
|
|
|
|
1.52
|
|
Subtotal
|
|
|
|
7,871.1
|
|
|
|
|
31.20
|
|
|
|
|
8,127.1
|
|
|
|
|
31.26
|
|
Foreign Currency Translation Adjustment
|
|
|
|
(113.4
|
)
|
|
|
|
(0.45
|
)
|
|
|
|
(47.1
|
)
|
|
|
|
(0.18
|
)
|
Subtotal
|
|
|
|
7,984.5
|
|
|
|
|
31.65
|
|
|
|
|
8,174.2
|
|
|
|
|
31.44
|
|
Unrecognized Pension and Postretirement Benefit Costs
|
|
|
|
(401.5
|
)
|
|
|
|
(1.59
|
)
|
|
|
|
(229.9
|
)
|
|
|
|
(0.88
|
)
|
Total Stockholders' Equity, Excluding Accumulated Other
Comprehensive Income
|
|
|
$
|
8,386.0
|
|
|
|
$
|
33.24
|
|
|
|
$
|
8,404.1
|
|
|
|
$
|
32.32
|
|
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