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Segment Information
 12 Months Ended
Dec. 31, 2023
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.

The Unum US segment is comprised of group disability, group life and accidental death and dismemberment, and supplemental and voluntary lines of business. The group disability line of business includes long-term and short-term disability, medical stop-loss, and fee-based service products. The supplemental and voluntary line of business includes voluntary benefits, individual disability, and dental and vision products. These products are marketed through our field sales personnel who work in conjunction with independent brokers and consultants.

The Unum International segment is comprised of our operations in both the United Kingdom and Poland. Our Unum UK products include insurance for group long-term disability, group life, and supplemental lines of business which include dental, individual disability, and critical illness products. Our Unum Poland products include insurance for individual and group life with accident and health riders. Unum International's products are sold primarily through field sales personnel and independent brokers and consultants.

The Colonial Life segment includes insurance for accident, sickness, and disability products, which includes our dental and
vision products, life products, and cancer and critical illness products marketed to employees, on both a group and an individual basis, at the workplace through an independent contractor agent sales force and brokers.

The Closed Block segment consists of group and individual long-term care, and other insurance products no longer actively marketed. We discontinued offering individual long-term care in 2009 and group long-term care in 2012. Other insurance products include individual disability, group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous product lines. In December 2020, we entered into the first phase of a reinsurance agreement to reinsure the majority of our Closed Block individual disability products to a third party. In March 2021, we completed the second phase of the reinsurance transaction to reinsure a portion of the remaining Closed Block individual disability business that was not ceded in December 2020. See Note 14 for further discussion.

The Corporate segment includes investment income on corporate assets not specifically allocated to a line of business, interest expense on corporate debt, and certain other corporate income and expenses not allocated to a line of business.

Impairment Loss on Internal-Use Software

During 2021, we recognized an impairment loss of $12.1 million for previously capitalized internal-use software that we no longer plan to utilize. We determined that this internal-use software would no longer be developed in order to focus our efforts on the development of software that better supports our long-term strategic goals. The impairment loss reduced the carrying value of the internal-use software to zero and has been recorded within other expenses in the consolidated statements of income and is included within our Corporate segment.
Segment information is shown below. Certain prior year amounts were reclassified to conform to current year presentation.
Year Ended December 31
202320222021
(in millions of dollars)
Premium Income
Unum US
Group Disability
Group Long-term Disability$2,057.2 $1,911.7 $1,827.8 
Group Short-term Disability1,012.3 926.3 864.0 
Group Life and Accidental Death & Dismemberment
Group Life1,679.0 1,669.1 1,641.9 
Accidental Death & Dismemberment175.5 173.7 165.1 
Supplemental and Voluntary
Voluntary Benefits850.1 833.7 840.7 
Individual Disability527.0 461.1 459.8 
Dental and Vision278.1 275.8 272.7 
6,579.2 6,251.4 6,072.0 
Unum International
Unum UK
Group Long-term Disability396.1 376.9 401.9 
Group Life169.3 138.2 112.3 
Supplemental141.5 114.0 112.6 
Unum Poland118.3 89.7 90.2 
825.2 718.8 717.0 
Colonial Life
Accident, Sickness, and Disability946.1 948.9 953.3 
Life426.5 401.1 384.7 
Cancer and Critical Illness353.5 352.0 352.2 
1,726.1 1,702.0 1,690.2 
Closed Block
Long-term Care696.0 697.4 704.3 
All Other219.5 246.9 291.5 
915.5 944.3 995.8 
Total Premium Income$10,046.0 $9,616.5 $9,475.0 
Unum USUnum InternationalColonial LifeClosed BlockCorporateTotal
(in millions of dollars)
Year Ended December 31, 2023
Premium Income$6,579.2 $825.2 $1,726.1 $915.5 $— $10,046.0 
Net Investment Income639.9 137.2 153.5 1,066.3 99.8 2,096.7 
Other Income220.5 1.6 1.2 52.6 3.3 279.2 
Adjusted Operating Revenue$7,439.6 $964.0 $1,880.8 $2,034.4 $103.1 $12,421.9 
Adjusted Operating Income (Loss)$1,355.5 $158.1 $400.1 $164.9 $(146.4)$1,932.2 
Interest and Debt Expense$— $— $— $— $194.8 $194.8 
DAC Amortization
$267.6 $8.4 $205.4 $— $— $481.4 
Depreciation and Intangible Amortization
$76.3 $14.6 $13.6 $5.2 $0.6 $110.3 
Year Ended December 31, 2022
Premium Income$6,251.4 $718.8 $1,702.0 $944.3 $— $9,616.5 
Net Investment Income676.3 170.1 152.7 1,070.6 52.5 2,122.2 
Other Income196.3 0.9 1.1 58.0 4.8 261.1 
Adjusted Operating Revenue$7,124.0 $889.8 $1,855.8 $2,072.9 $57.3 $11,999.8 
Adjusted Operating Income (Loss)$972.6 $134.0 $412.9 $251.9 $(164.3)$1,607.1 
Interest and Debt Expense$— $— $— $— $188.5 $188.5 
Costs Related to Early Retirement of Debt
$— $— $— $— $4.2 $4.2 
DAC Amortization
$240.9 $8.2 $172.0 $— $— $421.1 
Depreciation and Intangible Amortization
$75.7 $14.4 $15.0 $4.7 $0.6 $110.4 
Year Ended December 31, 2021
Premium Income$6,072.0 $717.0 $1,690.2 $995.8 $— $9,475.0 
Net Investment Income721.6 132.7 172.0 1,159.0 27.9 2,213.2 
Other Income170.0 0.6 1.0 65.1 6.2 242.9 
Adjusted Operating Revenue$6,963.6 $850.3 $1,863.2 $2,219.9 $34.1 $11,931.1 
Adjusted Operating Income (Loss)$398.9 $105.7 $404.3 $420.1 $(177.9)$1,151.1 
Interest and Debt Expense$— $— $— $— $185.0 $185.0 
Costs Related to Early Retirement of Debt
$— $— $— $— $67.3 $67.3 
DAC Amortization
$285.9 $7.0 $159.2 $— $— $452.1 
Depreciation and Intangible Amortization
$81.9 $13.0 $16.3 $5.1 $0.7 $117.0 
December 31
20232022
(in millions of dollars)
Assets
Unum US$15,561.1 $16,356.3 
Unum International3,372.9 3,129.4 
Colonial Life4,830.4 4,575.0 
Closed Block35,272.8 33,776.6 
Corporate4,218.0 3,311.2 
Total Assets$63,255.2 $61,148.5 

Revenue is primarily derived from sources in the United States, the United Kingdom, and Poland. There are no material revenues or assets attributable to foreign operations other than those reported in our Unum International segment.

We report goodwill in our Unum US, Unum International, and Colonial Life segments, which are the segments expected to benefit from the originating business combinations. At December 31, 2023 and 2022 goodwill was $349.9 million and $347.6 million, respectively, with $280.0 million attributable to Unum US in each year, $42.2 million and $39.9 million, respectively, attributable to Unum International, and $27.7 million attributable to Colonial Life in each year.

Stockholders' equity is allocated to the operating segments on the basis of an internal allocation formula that reflects the volume and risk components of each operating segment's business and aligns allocated equity 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.

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, the amortization of the cost of reinsurance, the impact of non-contemporaneous reinsurance, and reserve assumption updates 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, net income, or net loss. 

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.

Cash flow assumptions used to calculate our liability for future policy benefits are reviewed at least annually and updated, as needed, with the resulting impact reflected in net income. While the effects of these assumption updates are recorded in the reporting period in which the review is completed, these updates reflect experience emergence and changes to expectations spanning multiple periods. We believe that by excluding the impact of reserve assumption updates we are providing a more comparable and consistent view of our quarterly results.

We 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 we recognized upon the exit of the business related to the policies on claim status as well as the impact of non-contemporaneous reinsurance that resulted from the adoption of ASU 2018-12. Due to the execution of the second phase of the reinsurance transaction occurring after January 1, 2021, the transition date of ASU 2018-12, in accordance with the provisions of the ASU related to non-contemporaneous reinsurance, we were required to establish the ceded reserves using an upper-
medium grade fixed-income instrument as of the reinsurance transaction date in March 2021 which resulted in higher ceded reserves compared to that which was reported historically. However, the direct reserves for the block reinsured in the second phase were calculated using the original discount rate utilized as of the transition date. Both the direct and ceded reserves are then remeasured at each reporting period using a current discount rate reflective of an upper-medium grade fixed-income instrument, with the changes recognized in OCI. While the total equity impact is neutral, the different original discount rates utilized for direct and ceded reserves result in disproportionate earnings impacts. The impact of non-contemporaneous reinsurance will fluctuate depending on the magnitude of reserve changes during the period. We believe that the exclusion of these items provides a better view of our results from our ongoing businesses.

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.

See above and Notes 3, 6, 10, 14, and 17 for further discussion regarding the items specified in the reconciliation below.

A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows:
Year Ended December 31
202320222021
(in millions of dollars)
Total Revenue$12,385.9 $11,984.1 $12,007.8 
Excluding:
Net Investment Gain (Loss)(36.0)(15.7)76.7 
Adjusted Operating Revenue$12,421.9 $11,999.8 $11,931.1 
Income Before Income Tax$1,640.1 $1,750.0 $1,260.6 
Excluding:
Net Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance Transaction— — 67.6 
Net Investment Gain (Loss), Other
(36.0)(15.7)9.1 
Total Net Investment Gain (Loss)(36.0)(15.7)76.7 
Items Related to Closed Block Individual Disability Reinsurance Transaction
Amortization of the Cost of Reinsurance(44.1)(50.3)(69.8)
Non-Contemporaneous Reinsurance
(34.8)(34.4)(32.9)
Transaction Costs
— — (6.2)
Total Items Related to Closed Block Individual Disability Reinsurance Transaction(78.9)(84.7)(108.9)
Reserve Assumption Updates(177.2)243.3 235.0 
Impairment Loss on Internal-Use Software— — (12.1)
Cost Related to Early Retirement of Debt— — (67.3)
Impairment Loss on ROU Asset— — (13.9)
Adjusted Operating Income$1,932.2 $1,607.1 $1,151.1