Unum Group - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - Unum Group	unm06302017exhibit991.htm
8-K - 8-K - Unum Group	unm063020178-kcover.htm

Unum Group

Statistical Supplement Second Quarter 2017

TABLE OF CONTENTS

(in millions of dollars, except share data and where noted)

Interim Results are Unaudited



		Page
	Financial Highlights	1
	Capital Metrics	2
	Ratings	3
	Consolidated Statements of Income	4
	Sales Data by Segment	5
	Consolidated Balance Sheets	6
	Financial Results by Segment	7
	Quarterly Historical Financial Results by Segment	8
	Financial Results and Selected Statistics by Segment
	Unum US	9
	Unum UK	10
	Colonial Life	11
	Closed Block	12
	Corporate	13
	Reserves	14
	Investments	15
	Appendix to Statistical Supplement	16

See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.1 for a reconciliation of our non-GAAP financial measures.

N.M. = not a meaningful percentage

Unum Group Financial Highlights



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2017			6/30/2016			6/30/2017			6/30/2016			12/31/2016			12/31/2015
Consolidated U.S. GAAP Results¹

Premium Income	$	2,142.2		$	2,081.6		$	4,285.1		$	4,169.1		$	8,357.7		$	8,082.4

Operating Revenue	$	2,813.9		$	2,756.0		$	5,609.4		$	5,501.9		$	11,022.3		$	10,775.1
Net Realized Investment Gain (Loss)	8.1			5.3			19.1			(15.2		)	24.2			(43.8		)

Revenue	$	2,822.0		$	2,761.3		$	5,628.5		$	5,486.7		$	11,046.5		$	10,731.3

Net Income	$	245.1		$	236.8		$	475.0		$	447.4		$	931.4		$	867.1
Net Income Per Common Share:
Basic	$	1.08		$	1.00		$	2.08		$	1.88		$	3.96		$	3.51
Assuming Dilution	$	1.07		$	1.00		$	2.07		$	1.87		$	3.95		$	3.50

Assets							$	63,381.6		$	63,853.1		$	61,941.5		$	60,563.6
Stockholders' Equity							$	9,316.6		$	9,157.0		$	8,968.0		$	8,663.9

Operating Return on Equity²
Unum US	15.9		%	15.1		%	15.6		%	14.7		%	15.0		%	13.3		%
Unum UK	15.5		%	20.9		%	15.5		%	19.6		%	18.6		%	18.0		%
Colonial Life	17.3		%	17.4		%	17.4		%	17.6		%	17.4		%	16.6		%
Core Operating Segments	16.1		%	16.2		%	16.0		%	15.8		%	15.9		%	14.5		%
Consolidated	11.5		%	11.5		%	11.4		%	11.3		%	11.2		%	11.2		%



Traditional U.S. Life Insurance Companies' Statutory Results³
Net Gain from Operations, After Tax	$	225.2		$	228.4	$	405.3		$	412.5		$	884.6		$	689.2
Net Realized Investment Gain (Loss), After Tax	(1.0		)	3.8		(0.6		)	(13.7		)	(29.5		)	(35.5		)

Net Income	$	224.2		$	232.2	$	404.7		$	398.8		$	855.1		$	653.7

Capital and Surplus						$	3,609.5		$	3,495.0		$	3,626.9		$	3,470.3

Weighted Average Risk-based Capital Ratio						>395%			~390%			~ 400%			~ 400%

¹Generally Accepted Accounting Principles

²We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in our Corporate segment. Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting. See page 13.

³ 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.

Unum Group Capital Metrics



	6/30/2017						6/30/2016						12/31/2016						12/31/2015
	(in millions)			per share			(in millions)			per share			(in millions)			per share			(in millions)			per share
Total Stockholders' Equity (Book Value)	$	9,316.6		$	41.21		$	9,157.0		$	38.96		$	8,968.0		$	39.02		$	8,663.9		$	35.96
Excluding:
Net Unrealized Gain on Securities	558.2			2.47			661.1			2.81			440.6			1.92			204.3			0.84
Net Gain on Cash Flow Hedges	304.5			1.35			343.6			1.46			327.5			1.42			378.0			1.57
Subtotal	8,453.9			37.39			8,152.3			34.69			8,199.9			35.68			8,081.6			33.55
Excluding:
Foreign Currency Translation Adjustment	(297.1		)	(1.31		)	(279.4		)	(1.19		)	(354.0		)	(1.54		)	(173.6		)	(0.72		)
Subtotal	8,751.0			38.70			8,431.7			35.88			8,553.9			37.22			8,255.2			34.27
Excluding:
Unrecognized Pension and Postretirement Benefit Costs	(460.7		)	(2.04		)	(385.5		)	(1.64		)	(465.1		)	(2.02		)	(392.6		)	(1.63		)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)	$	9,211.7		$	40.74		$	8,817.2		$	37.52		$	9,019.0		$	39.24		$	8,647.8		$	35.90

Dividends Paid	$	92.3		$	0.40		$	89.4		$	0.37		$	182.6		$	0.77		$	174.2		$	0.70



	Three Months Ended				Six Months Ended						Year Ended
	6/30/2017		6/30/2016		6/30/2017			6/30/2016			12/31/2016			12/31/2015
Shares Repurchased (millions)	2.2		2.8		4.3			6.5			11.9			12.3
Cost of Shares Repurchased (millions)⁽¹⁾	$	100.1	$	100.1	$	200.1		$	200.1		$	403.3		$	426.7
Price (UNM closing price on last trading day of period)					$	46.57		$	31.79		$	43.93		$	33.29

Leverage Ratio					26.6		%	29.8		%	27.2		%	25.5		%

Holding Company Cash and Marketable Securities⁽²⁾					$	757		$	600		$	594		$	475

⁽¹⁾Includes commissions of $0.1 million for the three and six month periods ended June 30, 2017 and 2016, and $0.2 million and $0.3 million for the years ended December 31, 2016 and 2015, respectively.

⁽²⁾Excludes amounts committed for subsidiary contributions.

Unum Group Ratings



	AM Best	Fitch	Moody's	S&P
Outlook	Stable	Stable	Stable	Stable

Issuer Credit Ratings	bbb	BBB	Baa2	BBB

Financial Strength Ratings
Provident Life and Accident Insurance Company	A	A	A2	A
Unum Life Insurance Company of America	A	A	A2	A
Colonial Life & Accident Insurance Company	A	A	A2	A
The Paul Revere Life Insurance Company	A	A	A2	A
Starmount Life Insurance Company	A-	NR	NR	NR
Unum Insurance Company	A-	A	A2	NR
Unum Limited	NR	NR	NR	A-

NR = not rated

Unum Group Consolidated Statements of Income



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2017			6/30/2016			6/30/2017			6/30/2016			12/31/2016			12/31/2015
Revenue
Premium Income	$	2,142.2		$	2,081.6		$	4,285.1		$	4,169.1		$	8,357.7		$	8,082.4
Net Investment Income	620.5			623.3			1,222.9			1,229.7			2,459.0			2,481.2
Net Realized Investment Gain (Loss)	8.1			5.3			19.1			(15.2		)	24.2			(43.8		)
Other Income	51.2			51.1			101.4			103.1			205.6			211.5
Total Revenue	2,822.0			2,761.3			5,628.5			5,486.7			11,046.5			10,731.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,752.0			1,733.5			3,501.0			3,463.3			6,941.8			6,782.8
Commissions	261.3			255.0			531.5			514.9			1,026.7			996.3
Interest and Debt Expense - Non-recourse Debt	1.7			1.7			3.4			3.4			6.9			6.6
Interest and Debt Expense - All Other Debt	38.2			40.7			76.3			77.6			159.1			146.2
Deferral of Acquisition Costs	(153.2		)	(146.7		)	(315.3		)	(299.2		)	(592.4		)	(569.7		)
Amortization of Deferred Acquisition Costs	138.3			126.2			279.8			258.4			493.0			482.3
Other Expenses	422.1			410.7			859.9			823.9			1,663.7			1,648.5
Total Benefits and Expenses	2,460.4			2,421.1			4,936.6			4,842.3			9,698.8			9,493.0

Income Before Income Tax	361.6			340.2			691.9			644.4			1,347.7			1,238.3
Income Tax Expense	116.5			103.4			216.9			197.0			416.3			371.2

Net Income	$	245.1		$	236.8		$	475.0		$	447.4		$	931.4		$	867.1

Average Weighted Shares Outstanding
Basic	227.5			236.9			228.4			238.3			235.4			247.0
Assuming Dilution	228.2			237.3			229.3			238.6			236.0			247.9

Actual Number of Shares Outstanding							226.1			235.0			229.8			240.9

Unum Group Sales Data for Unum US Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2017		6/30/2016		% Change		6/30/2017		6/30/2016		% Change		12/31/2016		12/31/2015
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability	$	47.5	$	48.3	(1.7	)%	$	83.5	$	85.8	(2.7	)%	$	217.8	$	239.7
Group Short-term Disability	27.4		24.9		10.0		44.3		41.1		7.8		114.6		119.7
Group Life and AD&D	59.5		55.3		7.6		96.7		96.1		0.6		270.1		250.1
Subtotal	134.4		128.5		4.6		224.5		223.0		0.7		602.5		609.5
Supplemental and Voluntary
Individual Disability	13.6		14.6		(6.8	)	29.8		31.3		(4.8	)	65.1		67.5
Voluntary Benefits	49.6		44.8		10.7		196.9		170.7		15.3		261.7		262.6
Dental and Vision	10.4		—		—		20.3		—		—		14.5		—
Subtotal	73.6		59.4		23.9		247.0		202.0		22.3		341.3		330.1
Total Sales	$	208.0	$	187.9	10.7		$	471.5	$	425.0	10.9		$	943.8	$	939.6

Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees)	$	90.3	$	85.4	5.7	%	$	146.6	$	143.6	2.1	%	$	378.1	$	405.4
Large Case Market	44.1		43.1		2.3		77.9		79.4		(1.9	)	224.4		204.1
Subtotal	134.4		128.5		4.6		224.5		223.0		0.7		602.5		609.5
Supplemental and Voluntary	73.6		59.4		23.9		247.0		202.0		22.3		341.3		330.1
Total Sales	$	208.0	$	187.9	10.7		$	471.5	$	425.0	10.9		$	943.8	$	939.6

Unum Group Sales Data for Unum UK Segment



	Three Months Ended						Six Months Ended						Year Ended
(in millions of dollars)	6/30/2017		6/30/2016		% Change		6/30/2017		6/30/2016		% Change		12/31/2016		12/31/2015
Sales by Product
Group Long-term Disability	$	11.5	$	14.6	(21.2	)%	$	25.0	$	24.8	0.8	%	$	50.2	$	53.4
Group Life	6.0		5.4		11.1		9.9		10.1		(2.0	)	23.8		25.7
Supplemental	7.7		3.0		156.7		10.0		6.5		53.8		10.5		5.0
Total Sales	$	25.2	$	23.0	9.6		$	44.9	$	41.4	8.5		$	84.5	$	84.1

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	$	9.1	$	11.3	(19.5	)%	$	15.5	$	19.7	(21.3	)%	$	42.0	$	44.3
Large Case Market	8.4		8.7		(3.4	)	19.4		15.2		27.6		32.0		34.8
Subtotal	17.5		20.0		(12.5	)	34.9		34.9		—		74.0		79.1
Supplemental	7.7		3.0		156.7		10.0		6.5		53.8		10.5		5.0
Total Sales	$	25.2	$	23.0	9.6		$	44.9	$	41.4	8.5		$	84.5	$	84.1

(in millions of pounds)
Sales by Product
Group Long-term Disability	£	9.0	£	10.2	(11.8	)%	£	19.9	£	17.3	15.0	%	£	37.2	£	35.0
Group Life	4.7		3.8		23.7		7.8		7.0		11.4		17.8		16.8
Supplemental	6.1		2.0		N.M.		8.0		4.5		77.8		7.7		3.3
Total Sales	£	19.8	£	16.0	23.8		£	35.7	£	28.8	24.0		£	62.7	£	55.1

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	£	7.0	£	7.8	(10.3	)%	£	12.2	£	13.7	(10.9	)%	£	31.2	£	29.0
Large Case Market	6.7		6.2		8.1		15.5		10.6		46.2		23.8		22.8
Subtotal	13.7		14.0		(2.1	)	27.7		24.3		14.0		55.0		51.8
Supplemental	6.1		2.0		N.M.		8.0		4.5		77.8		7.7		3.3
Total Sales	£	19.8	£	16.0	23.8		£	35.7	£	28.8	24.0		£	62.7	£	55.1

5. 1

Unum Group Sales Data for Colonial Life Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2017		6/30/2016		% Change		6/30/2017		6/30/2016		% Change		12/31/2016		12/31/2015
Sales by Product
Accident, Sickness, and Disability	$	73.6	$	70.1	5.0	%	$	135.1	$	128.4	5.2	%	$	310.6	$	276.1
Life	24.9		21.7		14.7		45.8		38.7		18.3		94.0		85.6
Cancer and Critical Illness	18.1		16.7		8.4		32.1		31.3		2.6		79.0		76.8
Total Sales	$	116.6	$	108.5	7.5		$	213.0	$	198.4	7.4		$	483.6	$	438.5

Sales by Market Sector
Commercial
Core Market (< 1,000 employees)	$	80.6	$	71.3	13.0	%	$	150.8	$	133.3	13.1	%	$	309.0	$	290.8
Large Case Market	11.5		12.1		(5.0	)	19.7		22.3		(11.7	)	59.8		54.2
Subtotal	92.1		83.4		10.4		170.5		155.6		9.6		368.8		345.0
Public Sector	24.5		25.1		(2.4	)	42.5		42.8		(0.7	)	114.8		93.5
Total Sales	$	116.6	$	108.5	7.5		$	213.0	$	198.4	7.4		$	483.6	$	438.5

5. 2

Unum Group Consolidated Balance Sheets



	June 30			December 31
	2017			2016
Assets
Investments
Fixed Maturity Securities	$	45,118.6		$	44,217.3
Mortgage Loans	2,081.2			2,038.9
Policy Loans	3,409.8			3,463.2
Other Long-term Investments	661.3			631.5
Short-term Investments	1,120.8			780.0
Total Investments	52,391.7			51,130.9

Other Assets
Cash and Bank Deposits	117.0			100.4
Accounts and Premiums Receivable	1,629.1			1,610.8
Reinsurance Recoverable	4,850.6			4,858.9
Accrued Investment Income	808.6			693.3
Deferred Acquisition Costs	2,123.9			2,094.2
Goodwill	337.1			335.1
Property and Equipment	497.1			500.6
Other Assets	626.5			617.3
Total Assets	$	63,381.6		$	61,941.5

Liabilities
Policy and Contract Benefits	$	1,552.5		$	1,507.9
Reserves for Future Policy and Contract Benefits	45,136.1			44,245.9
Unearned Premiums	456.9			363.7
Other Policyholders’ Funds	1,627.5			1,623.8
Income Tax Payable	3.5			20.6
Deferred Income Tax	247.3			130.3
Long-term Debt - Non-recourse	225.5			255.0
Long-term Debt - All Other	2,742.9			2,744.4
Payables for Collateral on Investments	404.8			406.0
Other Liabilities	1,668.0			1,675.9
Total Liabilities	54,065.0			52,973.5

Stockholders’ Equity
Common Stock	30.4			30.4
Additional Paid-in Capital	2,282.9			2,272.8
Accumulated Other Comprehensive Income (Loss)	104.9			(51.0		)
Retained Earnings	9,126.7			8,744.0
Treasury Stock	(2,228.3		)	(2,028.2		)
Total Stockholders’ Equity	9,316.6			8,968.0
Total Liabilities and Stockholders’ Equity	$	63,381.6		$	61,941.5

Unum Group Deferred Acquisition Costs by Segment



	Unum US			Unum UK			Colonial Life			Consolidated
Balances at December 31, 2015	$	1,136.4		$	27.1		$	845.0		$	2,008.5
Capitalization	314.1			8.2			270.1			592.4
Amortization	(275.2		)	(9.7		)	(208.1		)	(493.0		)
Adjustment Related to Unrealized Investment Gains and Losses	1.2			—			(10.7		)	(9.5		)
Foreign Currency	—			(4.2		)	—			(4.2		)
Balances at December 31, 2016	1,176.5			21.4			896.3			2,094.2
Capitalization	165.8			3.8			145.7			315.3
Amortization	(163.1		)	(4.5		)	(112.2		)	(279.8		)
Adjustment Related to Unrealized Investment Gains and Losses	(0.3		)	—			(6.7		)	(7.0		)
Foreign Currency	—			1.2			—			1.2
Balances at June 30, 2017	$	1,178.9		$	21.9		$	923.1		$	2,123.9

6. 1

Unum Group Balance Sheets by Segment - June 30, 2017



	Unum US
	Group Disability		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Closed Block			Corporate			Consolidated
Assets
Investments	$	8,713.3	$	2,305.8	$	4,614.7	$	15,633.8	$	3,041.2	$	2,879.5	$	28,521.7		$	2,315.5		$	52,391.7
Deferred Acquisition Costs	93.3		75.5		1,010.1		1,178.9		21.9		923.1		—			—			2,123.9
Goodwill	—		—		271.1		271.1		38.3		27.7		—			—			337.1
All Other	528.6		190.0		430.4		1,149.0		256.7		209.5		5,944.9			968.8			8,528.9
Total Assets	$	9,335.2	$	2,571.3	$	6,326.3	$	18,232.8	$	3,358.1	$	4,039.8	$	34,466.6		$	3,284.3		$	63,381.6

Liabilities
Reserves and Policyholder Benefits	$	7,511.1	$	1,718.1	$	3,974.5	$	13,203.7	$	2,579.8	$	2,407.4	$	30,582.1		$	—		$	48,773.0
Debt	—		—		—		—		—		—		225.5			2,742.9			2,968.4
All Other	280.2		52.4		438.0		770.6		88.5		291.6		(22.9		)	1,195.8			2,323.6
Total Liabilities	7,791.3		1,770.5		4,412.5		13,974.3		2,668.3		2,699.0		30,784.7			3,938.7			54,065.0

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,529.9		771.8		1,786.1		4,087.8		606.1		1,239.4		3,217.4			(696.8		)	8,453.9
Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges	14.0		29.0		127.7		170.7		83.7		101.4		464.5			42.4			862.7
Total Allocated Stockholders' Equity	1,543.9		800.8		1,913.8		4,258.5		689.8		1,340.8		3,681.9			(654.4		)	9,316.6

Total Liabilities and Allocated Stockholders' Equity	$	9,335.2	$	2,571.3	$	6,326.3	$	18,232.8	$	3,358.1	$	4,039.8	$	34,466.6		$	3,284.3		$	63,381.6

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. 2

Unum Group Balance Sheets by Segment - December 31, 2016



	Unum US
	Group Disability		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Closed Block		Corporate		Consolidated
Assets
Investments	$	8,763.7	$	2,327.1	$	4,488.9	$	15,579.7	$	2,856.9	$	2,787.4	$	27,894.5	$	2,012.4	$	51,130.9
Deferred Acquisition Costs	89.8		73.4		1,013.3		1,176.5		21.4		896.3		—		—		2,094.2
Goodwill	—		—		271.1		271.1		36.3		27.7		—		—		335.1
All Other	445.4		144.0		419.9		1,009.3		186.8		211.8		5,839.8		1,133.6		8,381.3
Total Assets	$	9,298.9

Unum Group - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 27, 2017

Attached files