Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reporting segments are comprised of Unum US, Unum UK, Colonial Life, Closed Block, and Corporate. Effective with the fourth quarter of 2011 we modified our reporting segments to reclassify our long-term care products from the Unum US segment to the Closed Block segment.  We also reclassified our other insurance products not actively marketed which were previously reported in the Corporate and Other segment to the Closed Block segment. Prior period segment results have been adjusted to reflect this change in our reporting classifications.

In the following segment financial data, "operating revenue" excludes net realized investment gains or losses. "Operating income" or "operating loss" excludes net realized investment gains or losses, non-operating retirement-related gains or losses, and income tax. These are considered non-GAAP financial measures. These non-GAAP financial measures of "operating revenue" and "operating income" or "operating loss" differ from revenue and income before income tax as presented in our consolidated statements of income prepared in accordance with GAAP due to the exclusion of before-tax realized investment gains or losses and non-operating retirement-related gains or losses. We previously allocated the amortization of prior period actuarial gains or losses, the component of the net periodic benefit costs for our pensions and other postretirement benefit plans which we consider to be non-operating, to our Corporate segment. During the first quarter of 2012, we determined that we would modify our segment reporting. Effective January 1, 2012, the amortization of prior period actuarial gains or losses is no longer included in operating income or operating loss by segment. Prior period segment results for our Corporate segment have been adjusted to conform to current year reporting.

We measure segment performance excluding these items because we believe this performance measure is a 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. Our non-operating retirement-related gains or losses are primarily driven by market performance and are not indicative of the operational results of our businesses. However, 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 will increase or decrease over time, depending on market conditions and the resulting impact on the actuarial gains or losses in our pensions and other postretirement benefit plans. The exclusion of these items from segment performance does not replace net income or net loss as a measure of our overall profitability.

A reconciliation of total operating revenue and operating income by segment to revenue and net income as reported in our consolidated statements of income follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2012			2011			2012			2011
	(in millions of dollars)
Operating Revenue by Segment	$	2,606.7		$	2,569.5		$	7,825.6		$	7,685.5
Net Realized Investment Gain (Loss)	21.3			(23.9		)	31.6			(12.3		)
Revenue	$	2,628.0		$	2,545.6		$	7,857.2		$	7,673.2
Operating Income by Segment	$	310.7		$	320.6		$	930.0		$	986.9
Net Realized Investment Gain (Loss)	21.3			(23.9		)	31.6			(12.3		)
Non-operating Retirement-related Loss	(11.6		)	(8.0		)	(34.8		)	(24.0		)
Income Tax	(90.2		)	(86.7		)	(266.3		)	(297.4		)
Net Income	$	230.2		$	202.0		$	660.5		$	653.2

Additionally, effective January 1, 2012, we adopted an accounting standards update regarding the capitalization of costs associated with the acquisition of insurance contracts and applied the amendments retrospectively. Operating income and assets by segment have been adjusted to reflect our retrospective adoption. See Note 2 for further information.

Premium income by major line of business within each of our segments is presented as follows:

	Three Months Ended September 30					Nine Months Ended September 30
	2012		2011			2012		2011
	(in millions of dollars)
Unum US
Group Disability
Group Long-term Disability	$	392.4	$	393.7		$	1,185.7	$	1,185.3
Group Short-term Disability	120.1		115.2			356.0		339.0
Group Life and Accidental Death & Dismemberment
Group Life	297.3		277.6			885.1		825.3
Accidental Death & Dismemberment	29.2		27.7			86.2		81.6
Supplemental and Voluntary
Individual Disability - Recently Issued	119.9		116.6			357.0		348.3
Voluntary Benefits	153.0		143.6			468.9		433.5
	1,111.9		1,074.4			3,338.9		3,213.0
Unum UK
Group Long-term Disability	102.9		107.3			306.5		318.3
Group Life	56.4		52.1			164.6		151.6
Supplemental and Voluntary	15.9		16.1			48.0		48.5
	175.2		175.5			519.1		518.4
Colonial Life
Accident, Sickness, and Disability	181.8		174.3			541.8		519.7
Life	52.2		47.0			156.3		140.0
Cancer and Critical Illness	65.4		62.4			194.5		186.4
	299.4		283.7			892.6		846.1
Closed Block
Individual Disability	183.1		196.4			554.9		595.0
Long-term Care	159.4		152.1			471.5		453.5
All Other	0.4		(0.9		)	1.9		(0.3		)
	342.9		347.6			1,028.3		1,048.2
Total	$	1,929.4	$	1,881.2		$	5,778.9	$	5,625.7

Selected operating statement data by segment is presented as follows:

	Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Total
	(in millions of dollars)
Three Months Ended September 30, 2012
Premium Income	$	1,111.9	$	175.2	$	299.4	$	342.9	$	—		$	1,929.4
Net Investment Income	236.3		34.8		33.9		307.3		6.9			619.2
Other Income	31.3		—		—		26.4		0.4			58.1
Operating Revenue	$	1,379.5	$	210.0	$	333.3	$	676.6	$	7.3		$	2,606.7
Operating Income (Loss)	$	216.3	$	27.5	$	68.7	$	25.6	$	(27.4	)	$	310.7
Three Months Ended September 30, 2011
Premium Income	$	1,074.4	$	175.5	$	283.7	$	347.6	$	—		$	1,881.2
Net Investment Income	240.0		43.3		32.5		300.1		13.3			629.2
Other Income	30.4		—		0.1		26.4		2.2			59.1
Operating Revenue	$	1,344.8	$	218.8	$	316.3	$	674.1	$	15.5		$	2,569.5
Operating Income (Loss)	$	209.2	$	34.7	$	66.7	$	30.8	$	(20.8	)	$	320.6
Nine Months Ended September 30, 2012
Premium Income	$	3,338.9	$	519.1	$	892.6	$	1,028.3	$	—		$	5,778.9
Net Investment Income	711.8		120.5		103.5		913.4		23.0			1,872.2
Other Income	93.1		0.1		0.2		78.9		2.2			174.5
Operating Revenue	$	4,143.8	$	639.7	$	996.3	$	2,020.6	$	25.2		$	7,825.6
Operating Income (Loss)	$	634.9	$	96.3	$	206.0	$	66.7	$	(73.9	)	$	930.0
Nine Months Ended September 30, 2011
Premium Income	$	3,213.0	$	518.4	$	846.1	$	1,048.2	$	—		$	5,625.7
Net Investment Income	712.6		139.3		99.6		888.9		44.6			1,885.0
Other Income	90.9		0.1		0.4		80.6		2.8			174.8
Operating Revenue	$	4,016.5	$	657.8	$	946.1	$	2,017.7	$	47.4		$	7,685.5
Operating Income (Loss)	$	609.5	$	138.8	$	205.1	$	93.1	$	(59.6	)	$	986.9

Assets by segment are as follows:

	September 30		December 31
	2012		2011
	(in millions of dollars)
Unum US	$	19,135.0	$	18,583.6
Unum UK	3,945.4		3,549.5
Colonial Life	3,357.9		3,167.8
Closed Block	32,718.9		31,439.5
Corporate	2,962.4		2,814.8
Total	$	62,119.6	$	59,555.2