EX-99.2 3 unm03312020exhibit992.htm EX-99.2 Document

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Unum Group
Statistical Supplement First Quarter 2020

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





Unum Group Financial Highlights
Three Months EndedYear Ended
3/31/20203/31/201912/31/201912/31/2018
Consolidated U.S. GAAP Results¹
Premium Income$2,371.4  $2,338.7  $9,365.6  $8,986.1  
Adjusted Operating Revenue$3,015.1  $2,986.5  $12,022.1  $11,638  
Net Realized Investment Gain (Loss) (144.0) 1.1  (23.2) (39.5) 
Revenue$2,871.1  $2,987.6  $11,998.9  $11,598.5  
Net Income$161.0  $280.9  $1,100.3  $523.4  
Net Income Per Common Share:
Basic $0.79  $1.31  $5.25  $2.38  
Assuming Dilution $0.79  $1.31  $5.24  $2.38  
Assets$65,335.9  $63,921.7  $67,013.4  $61,875.6  
Stockholders' Equity$9,803.1  $9,060.5  $9,965.0  $8,621.8  
Adjusted Operating Return on Equity
Unum US18.4 %17.6 %18.0 %18.4 %
Unum International8.5 %13.2 %11.7 %13.4 %
Colonial Life16.5 %17.4 %17.5 %18.0 %
Core Operating Segments16.9 %17.1 %17.2 %17.8 %
Consolidated12.0 %12.8 %12.8 %13.2 %

Traditional U.S. Life Insurance Companies' Statutory Results2
Net Gain from Operations, After Tax$326.1  $223.1  $1,027.2  $959.8  
Net Realized Investment Gain (Loss), After Tax(63.5) (4.7) (45.1) (6.8) 
Net Income$262.6  $218.4  $982.1  $953.0  
Capital and Surplus$3,549.5  $3,511.3  $3,644.4  $3,572.7  
Weighted Average Risk-based Capital Ratio~ 365%~ 360%~ 365%  ~ 370%  

1 Generally Accepted Accounting Principles
2 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

3/31/20203/31/201912/31/201912/31/2018
(in millions)per share(in millions)per share(in millions)per share(in millions)per share
Total Stockholders' Equity (Book Value)$9,803.1  $48.21  $9,060.5  $42.68  $9,965.0  $49.10  $8,621.8  $40.19  
Excluding:
Net Unrealized Gain (Loss) on Securities 395.3  1.94  (0.1) —  615.9  3.03  (312.4) (1.46) 
Net Gain on Hedges  210.6  1.04  230.1  1.08  187.8  0.93  250.6  1.17  
Subtotal9,197.2  45.23  8,830.5  41.60  9,161.3  45.14  8,683.6  40.48  
Excluding:
Foreign Currency Translation Adjustment(345.2) (1.70) (287.9) (1.36) (281.6) (1.39) (305.2) (1.42) 
Subtotal9,542.4  46.93  9,118.4  42.96  9,442.9  46.53  8,988.8  41.90  
Excluding:
Unrecognized Pension and Postretirement Benefit Costs(477.8) (2.35) (444.4) (2.09) (484.8) (2.39) (447.2) (2.08) 
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)$10,020.2  $49.28  $9,562.8  $45.05  $9,927.7  $48.92  $9,436.0  $43.98  
Dividends Paid$58.8  $0.29  $57.5  $0.26  $231.3  $1.09  $217.0  $0.98  

Three Months EndedYear Ended
3/31/20203/31/201912/31/201912/31/2018
Shares Repurchased (millions)—  2.7  12.3  8.7  
Cost of Shares Repurchased (millions)(1)
$—  $100.0  $400.4  $350.7  
Price (UNM closing price on last trading day of period)$15.01  $33.83  $29.16  $29.38  
Leverage Ratio29.1 %27.3 %29.1 %26.8 %
Holding Company Cash and Marketable Securities$1,025  $594  $863  $602  

(1) Includes commissions of a de minimis amount for the three months ended March 31, 2019 and $0.4 million and $0.7 million for the years ended December 31, 2019 and 2018, respectively.

2


Unum Group Ratings


AM BestFitchMoody'sS&P
OutlookStableNegativeStableStable
Issuer Credit RatingsbbbBBB-Baa2BBB
Financial Strength Ratings
Provident Life and Accident Insurance CompanyAA-A2A
Unum Life Insurance Company of AmericaAA-A2A
Colonial Life & Accident Insurance CompanyAA-A2A
The Paul Revere Life Insurance CompanyAA-A2A
Starmount Life Insurance CompanyA-NRNRNR
Unum Insurance CompanyA-A-A2NR
Unum LimitedNRNRNRA-

NR = not rated


3


Unum Group Consolidated Statements of Income

Three Months EndedYear Ended
3/31/20203/31/201912/31/201912/31/2018
Revenue
Premium Income$2,371.4  $2,338.7  $9,365.6  $8,986.1  
Net Investment Income585.0  594.7  2,435.3  2,453.7  
Net Realized Investment Gain (Loss)(144.0) 1.1  (23.2) (39.5) 
Other Income58.7  53.1  221.2  198.2  
Total Revenue2,871.1  2,987.6  11,998.9  11,598.5  
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits1,854.8  1,840.8  7,496.2  8,020.4  
Commissions279.2  290.1  1,122.7  1,108.4  
Interest and Debt Expense - Non-recourse Debt0.8  1.6  5.3  6.9  
Interest and Debt Expense - All Other Debt44.9  40.5  172.1  160.4  
Cost Related to Early Retirement of Debt—  —  27.3  —  
Deferral of Acquisition Costs(162.0) (173.7) (658.6) (668.0) 
Amortization of Deferred Acquisition Costs176.2  170.6  609.9  565.5  
Other Expenses475.1  464.4  1,841.9  1,777.1  
Total Benefits and Expenses2,669.0  2,634.3  10,616.8  10,970.7  
Income Before Income Tax202.1  353.3  1,382.1  627.8  
Income Tax41.1  72.4  281.8  104.4  
Net Income$161.0  $280.9  $1,100.3  $523.4  
Weighted Average Shares Outstanding
Basic203.3  214.3  209.7  219.6  
Assuming Dilution203.4  214.4  209.9  220.1  
Actual Number of Shares Outstanding203.3  212.3  202.9  214.6  


4


Unum Group Sales Data for Unum US Segment

Three Months EndedYear Ended
3/31/20203/31/2019% Change12/31/201912/31/2018
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability$31.4  $36.9  (14.9)%$241.5  $243.8  
Group Short-term Disability14.2  20.9  (32.1) 159.2  138.7  
Group Life and AD&D28.1  40.6  (30.8) 258.3  282.4  
Subtotal73.7  98.4  (25.1) 659.0  664.9  
Supplemental and Voluntary
Individual Disability22.7  15.1  50.3  75.9  77.2  
Voluntary Benefits128.6  152.4  (15.6) 300.6  303.1  
Dental and Vision10.8  12.5  (13.6) 74.6  69.4  
Subtotal162.1  180.0  (9.9) 451.1  449.7  
Total Sales$235.8  $278.4  (15.3) $1,110.1  $1,114.6  
Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees)$51.2  $48.7  5.1 %$370.8  $395.1  
Large Case Market22.5  49.7  (54.7) 288.2  269.8  
Subtotal73.7  98.4  (25.1) 659.0  664.9  
Supplemental and Voluntary162.1  180.0  (9.9) 451.1  449.7  
Total Sales$235.8  $278.4  (15.3) $1,110.1  $1,114.6  


5


Unum Group Sales Data for Unum International Segment

Three Months EndedYear Ended
(in millions of dollars)3/31/20203/31/2019% Change12/31/201912/31/2018
Sales by Product
Unum UK
Group Long-term Disability$8.6  $8.2  4.9 %$43.2  $44.7  
Group Life5.6  6.1  (8.2) 24.3  21.5  
Supplemental7.1  4.9  44.9  19.5  17.4  
Unum Poland2.6  3.4  (23.5) 13.0  3.4  
Total Sales$23.9  $22.6  5.8  $100.0  $87.0  
Sales by Market Sector
Unum UK
Group Long-term Disability and Group Life
Core Market (< 500 employees)$9.1  $8.5  7.1 %$38.2  $36.6  
Large Case Market5.1  5.8  (12.1) 29.3  29.6  
Subtotal14.2  14.3  (0.7) 67.5  66.2  
Supplemental7.1  4.9  44.9  19.5  17.4  
Unum Poland2.6  3.4  (23.5) 13.0  3.4  
Total Sales$23.9  $22.6  5.8  $100.0  $87.0  
(in millions of pounds)
Unum UK Sales by Product
Group Long-term Disability£6.7  £6.2  8.1 %£33.7  £33.5  
Group Life4.4  4.7  (6.4) 19.0  16.2  
Supplemental5.4  3.8  42.1  15.1  12.8  
Total Sales£16.5  £14.7  12.2  £67.8  £62.5  
Unum UK Sales by Market Sector
Group Long-term Disability and Group Life  
Core Market (< 500 employees)£7.2  £6.5  10.8 %£29.9  £27.6  
Large Case Market3.9  4.4  (11.4) 22.8  22.1  
Subtotal11.1  10.9  1.8  52.7  49.7  
Supplemental5.4  3.8  42.1  15.1  12.8  
Total Sales£16.5  £14.7  12.2  £67.8  £62.5  

Certain prior year and prior period amounts in the table above were reclassified to conform to current year presentation.
5. 1


Unum Group Sales Data for Colonial Life Segment

Three Months EndedYear Ended
3/31/20203/31/2019% Change12/31/201912/31/2018
Sales by Product
Accident, Sickness, and Disability  $64.6  $72.2  (10.5)%$354.4  $355.0  
Life  20.7  19.7  5.1  122.7  111.9  
Cancer and Critical Illness  14.0  16.9  (17.2) 88.9  94.4  
Total Sales  $99.3  $108.8  (8.7) $566.0  $561.3  
Sales by Market Sector
Commercial
Core Market (< 1,000 employees)$67.6  $71.4  (5.3)%$345.7  $349.0  
Large Case Market11.9  14.3  (16.8) 81.4  95.5  
Subtotal79.5  85.7  (7.2) 427.1  444.5  
Public Sector19.8  23.1  (14.3) 138.9  116.8  
Total Sales$99.3  $108.8  (8.7) $566.0  $561.3  



5. 2


Unum Group Consolidated Balance Sheets
March 31December 31
20202019
Assets
Investments
Fixed Maturity Securities$45,291.5  $47,443.7  
Mortgage Loans2,452.1  2,397.0  
Policy Loans3,743.5  3,779.5  
Other Long-term Investments917.5  844.2  
Short-term Investments1,384.4  1,294.5  
Total Investments53,789.0  55,758.9  
Other Assets
Cash and Bank Deposits337.2  84.1  
Accounts and Premiums Receivable1,639.6  1,602.9  
Reinsurance Recoverable4,666.2  4,780.7  
Accrued Investment Income748.5  693.0  
Deferred Acquisition Costs2,333.3  2,324.0  
Goodwill348.8  351.7  
Property and Equipment540.7  534.1  
Deferred Income Tax47.3  —  
Other Assets885.3  884.0  
Total Assets$65,335.9  $67,013.4  

6


Unum Group Consolidated Balance Sheets - Continued
March 31December 31
20202019
Liabilities and Stockholders' Equity
Liabilities
Policy and Contract Benefits$1,760.3  $1,745.5  
Reserves for Future Policy and Contract Benefits45,706.5  47,780.1  
Unearned Premiums414.1  363.9  
Other Policyholders’ Funds1,599.3  1,599.7  
Income Tax Payable268.9  256.7  
Deferred Income Tax93.7  95.4  
Short-term Debt399.8  399.7  
Long-term Debt - Non-recourse63.4  78.1  
Long-term Debt - All Other2,850.9  2,848.8  
Payables for Collateral on Investments511.4  24.0  
Other Liabilities 1,864.5  1,856.5  
Total Liabilities55,532.8  57,048.4  
Stockholders’ Equity
Common Stock30.6  30.6  
Additional Paid-in Capital2,357.3  2,348.1  
Accumulated Other Comprehensive Income (Loss)(217.1) 37.3  
Retained Earnings10,812.0  10,728.7  
Treasury Stock(3,179.7) (3,179.7) 
Total Stockholders’ Equity9,803.1  9,965.0  
Total Liabilities and Stockholders’ Equity$65,335.9  $67,013.4  

6. 1


Unum Group Deferred Acquisition Costs by Segment

Unum USUnum InternationalColonial LifeConsolidated
Balance at December 31, 2018  $1,239.4  $20.0  $1,050.0  $2,309.4  
Capitalization334.5  12.8  311.3  658.6  
Amortization(344.0) (7.1) (258.8) (609.9) 
Adjustment Related to Unrealized Investment Gains and Losses(6.9) —  (27.9) (34.8) 
Foreign Currency—  0.7  —  0.7  
Balance at December 31, 2019  1,223.0  26.4  1,074.6  2,324.0  
Capitalization79.6  3.0  79.4  162.0  
Amortization(107.7) (1.8) (66.7) (176.2) 
Adjustment Related to Unrealized Investment Gains and Losses3.6  —  21.7  25.3  
Foreign Currency—  (1.8) —  (1.8) 
Balance at March 31, 2020$1,198.5  $25.8  $1,109.0  $2,333.3  

6. 2


Unum Group Balance Sheets by Segment - March 31, 2020

Unum US
Group DisabilityGroup Life and Accidental Death & DismembermentSupplemental and VoluntaryTotal Unum USUnum InternationalColonial LifeClosed BlockCorporateConsolidated
Assets
Investments$8,010.4  $2,406.2  $5,169.6  $15,586.2  $3,216.1  $3,188.4  $29,898.2  $1,900.1  $53,789.0  
Deferred Acquisition Costs98.6  79.3  1,020.6  1,198.5  25.8  1,109.0  —  —  2,333.3  
Goodwill8.9  —  271.1  280.0  41.1  27.7  —  —  348.8  
All Other290.7  263.5  172.6  726.8  232.1  102.9  6,106.1  1,696.9  8,864.8  
Total Assets$8,408.6  $2,749.0  $6,633.9  $17,791.5  $3,515.1  $4,428.0  $36,004.3  $3,597.0  $65,335.9  
Liabilities
Reserves and Policyholder Benefits$6,965.5  $1,697.4  $4,165.7  $12,828.6  $2,707.4  $2,735.2  $31,209.0  $—  $49,480.2  
Debt—  —  —  —  —  —  63.4  3,250.7  3,314.1  
All Other34.8  20.7  238.5  294.0  112.5  57.0  339.4  1,935.6  2,738.5  
Total Liabilities7,000.3  1,718.1  4,404.2  13,122.6  2,819.9  2,792.2  31,611.8  5,186.3  55,532.8  
Allocated Stockholders' Equity
Other Allocated Stockholders' Equity1,379.2  1,030.9  2,092.1  4,502.2  727.2  1,551.8  4,100.2  (1,684.2) 9,197.2  
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges29.1  —  137.6  166.7  (32.0) 84.0  292.3  94.9  605.9  
Total Allocated Stockholders' Equity1,408.3  1,030.9  2,229.7  4,668.9  695.2  1,635.8  4,392.5  (1,589.3) 9,803.1  
Total Liabilities and Allocated Stockholders' Equity$8,408.6  $2,749.0  $6,633.9  $17,791.5  $3,515.1  $4,428.0  $36,004.3  $3,597.0  $65,335.9  

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. 3


Unum Group Balance Sheets by Segment - December 31, 2019

Unum US
Group DisabilityGroup Life and Accidental Death & DismembermentSupplemental and VoluntaryTotal Unum USUnum InternationalColonial LifeClosed BlockCorporateConsolidated
Assets  
Investments  $8,251.4  $2,522.8  $5,233.7  $16,007.9  $3,378.1  $3,281.4  $31,042.0  $2,049.5  $55,758.9  
Deferred Acquisition Costs  99.1  79.7  1,044.2  1,223.0  26.4  1,074.6  —  —  2,324.0  
Goodwill  8.9  —  271.1  280.0  44.0  27.7  —  —  351.7  
All Other  443.4  252.7  379.3  1,075.4  420.6  245.3  5,966.7  870.8  8,578.8  
Total Assets  $8,802.8  $2,855.2  $6,928.3  $18,586.3  $3,869.1  $4,629.0  $37,008.7  $2,920.3  $67,013.4  
Liabilities  
Reserves and Policyholder Benefits  $7,288.7  $1,749.8  $4,219.6  $13,258.1  $2,909.4  $2,711.2  $32,610.5  $—  $51,489.2  
Debt  —  —  —  —  —  —  78.1  3,248.5  3,326.6  
All Other  128.0  34.2  404.8  567.0  132.6  216.2  13.5  1,303.3  2,232.6  
Total Liabilities  7,416.7  1,784.0  4,624.4  13,825.1  3,042.0  2,927.4  32,702.1  4,551.8  57,048.4  
Allocated Stockholders' Equity  
Other Allocated Stockholders' Equity  1,363.9  1,033.7  2,114.7  4,512.3  771.9  1,555.2  4,069.3  (1,747.4) 9,161.3  
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges 22.2  37.5  189.2  248.9  55.2  146.4  237.3  115.9  803.7  
Total Allocated Stockholders' Equity  1,386.1  1,071.2  2,303.9  4,761.2  827.1  1,701.6  4,306.6  (1,631.5) 9,965.0  
Total Liabilities and Allocated Stockholders' Equity  $8,802.8  $2,855.2  $6,928.3  $18,586.3  $3,869.1  $4,629.0  $37,008.7  $2,920.3  $67,013.4  

6. 4


Unum Group Financial Results by Segment

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 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.
Three Months EndedYear Ended
3/31/20203/31/2019% Change12/31/201912/31/2018% Change
Premium Income
Unum US$1,527.7  $1,501.9  1.7 %$6,016.6  5,736.4  4.9 %
Unum International164.6  154.0  6.9  630.5  568.8  10.8  
Colonial Life434.7  419.3  3.7  1,685.0  1,603.8  5.1  
Closed Block244.4  263.5  (7.2) 1,033.5  1,077.1  (4.0)