Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - Unum Group | unm03312021exhibit991.htm |
| 8-K - 8-K - Unum Group | unm-20210505.htm |
Unum Group
Statistical Supplement First Quarter 2021
TABLE OF CONTENTS
(in millions of dollars, except share data and where noted)
Interim Results are Unaudited
| Page | |||||||||||
| See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.3 for a reconciliation of our non-GAAP financial measures. | |||||||||||
| N.M. = not a meaningful percentage | |||||||||||
Unum Group Financial Highlights
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Consolidated U.S. GAAP Results¹ | |||||||||||||||||||||||
| Premium Income | $ | 2,378.3 | $ | 2,371.4 | $ | 9,378.1 | $ | 9,365.6 | |||||||||||||||
| Adjusted Operating Revenue | $ | 2,987.4 | $ | 3,015.1 | $ | 11,963.0 | $ | 12,022.1 | |||||||||||||||
| Net Realized Investment Gain (Loss) | 84.6 | (144.0) | 1,199.1 | (23.2) | |||||||||||||||||||
| Revenue | $ | 3,072.0 | $ | 2,871.1 | $ | 13,162.1 | $ | 11,998.9 | |||||||||||||||
| Net Income | $ | 153.0 | $ | 161.0 | $ | 793.0 | $ | 1,100.3 | |||||||||||||||
| Net Income Per Common Share: | |||||||||||||||||||||||
| Basic | $ | 0.75 | $ | 0.79 | $ | 3.89 | $ | 5.25 | |||||||||||||||
| Assuming Dilution | $ | 0.75 | $ | 0.79 | $ | 3.89 | $ | 5.24 | |||||||||||||||
| Assets | $ | 69,256.6 | $ | 65,335.9 | $ | 70,625.8 | $ | 67,013.4 | |||||||||||||||
| Stockholders' Equity | $ | 10,570.1 | $ | 9,803.1 | $ | 10,871.0 | $ | 9,965.0 | |||||||||||||||
| Adjusted Operating Return on Equity | |||||||||||||||||||||||
| Unum US | 8.3 | % | 18.4 | % | 14.6 | % | 18.0 | % | |||||||||||||||
| Unum International | 10.3 | % | 8.5 | % | 6.5 | % | 11.7 | % | |||||||||||||||
| Colonial Life | 14.5 | % | 16.5 | % | 16.7 | % | 17.5 | % | |||||||||||||||
| Core Operating Segments | 10.0 | % | 16.9 | % | 14.1 | % | 17.2 | % | |||||||||||||||
| Consolidated | 8.7 | % | 12.0 | % | 10.7 | % | 12.8 | % | |||||||||||||||
Traditional U.S. Life Insurance Companies' Statutory Results2 | |||||||||||||||||||||||
| Net Gain from Operations, After Tax | $ | 136.7 | $ | 326.1 | $ | 726.2 | $ | 1,027.2 | |||||||||||||||
| Net Realized Investment Gain (Loss), After Tax | 6.7 | (63.5) | (79.4) | (45.1) | |||||||||||||||||||
| Net Income | $ | 143.4 | $ | 262.6 | $ | 646.8 | $ | 982.1 | |||||||||||||||
| Capital and Surplus | $ | 3,729.2 | $ | 3,549.5 | $ | 3,875.0 | $ | 3,644.4 | |||||||||||||||
| Weighted Average Risk-based Capital Ratio | ~ 370% | ~ 365% | ~ 365% | ~ 365% | |||||||||||||||||||
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
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | per share | (in millions) | per share | (in millions) | per share | (in millions) | per share | ||||||||||||||||||||||||||||||||||||||||
| Total Stockholders' Equity (Book Value) | $ | 10,570.1 | $ | 51.77 | $ | 9,803.1 | $ | 48.21 | $ | 10,871.0 | $ | 53.37 | $ | 9,965.0 | $ | 49.10 | |||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net Unrealized Gain on Securities | 678.2 | 3.32 | 395.3 | 1.94 | 1,067.7 | 5.24 | 615.9 | 3.03 | |||||||||||||||||||||||||||||||||||||||
| Net Gain on Hedges | 77.1 | 0.38 | 210.6 | 1.04 | 97.8 | 0.48 | 187.8 | 0.93 | |||||||||||||||||||||||||||||||||||||||
| Subtotal | 9,814.8 | 48.07 | 9,197.2 | 45.23 | 9,705.5 | 47.65 | 9,161.3 | 45.14 | |||||||||||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | (254.0) | (1.24) | (345.2) | (1.70) | (261.3) | (1.28) | (281.6) | (1.39) | |||||||||||||||||||||||||||||||||||||||
| Subtotal | 10,068.8 | 49.31 | 9,542.4 | 46.93 | 9,966.8 | 48.93 | 9,442.9 | 46.53 | |||||||||||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Unrecognized Pension and Postretirement Benefit Costs | (526.2) | (2.58) | (477.8) | (2.35) | (530.0) | (2.61) | (484.8) | (2.39) | |||||||||||||||||||||||||||||||||||||||
| Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss) | $ | 10,595.0 | $ | 51.89 | $ | 10,020.2 | $ | 49.28 | $ | 10,496.8 | $ | 51.54 | $ | 9,927.7 | $ | 48.92 | |||||||||||||||||||||||||||||||
| Dividends Paid | $ | 59.4 | $ | 0.29 | $ | 58.8 | $ | 0.29 | $ | 233.2 | $ | 1.14 | $ | 231.3 | $ | 1.09 | |||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Shares Repurchased (millions) | — | — | — | 12.3 | |||||||||||||||||||
Cost of Shares Repurchased (millions)1 | $ | — | $ | — | $ | — | $ | 400.4 | |||||||||||||||
| Price (UNM closing price on last trading day of period) | $ | 27.83 | $ | 15.01 | $ | 22.94 | $ | 29.16 | |||||||||||||||
| Leverage Ratio | 26.0 | % | 29.1 | % | 26.2 | % | 29.1 | % | |||||||||||||||
| Holding Company Cash and Marketable Securities | $ | 1,664 | $ | 1,025 | $ | 1,512 | $ | 863 | |||||||||||||||
1 Includes commissions of $0.4 million for the year ended December 31, 2019.
2
Unum Group Ratings
| AM Best | Fitch | Moody's | S&P | ||||||||||||||||||||
| Outlook | Negative | Stable | Negative | Stable | |||||||||||||||||||
| Issuer Credit Ratings | bbb | BBB- | Baa3 | BBB | |||||||||||||||||||
| Financial Strength Ratings | |||||||||||||||||||||||
| Provident Life and Accident Insurance Company | A | A- | A3 | A | |||||||||||||||||||
| Unum Life Insurance Company of America | A | A- | A3 | A | |||||||||||||||||||
| Colonial Life & Accident Insurance Company | A | A- | A3 | A | |||||||||||||||||||
| The Paul Revere Life Insurance Company | A | A- | A3 | A | |||||||||||||||||||
| Starmount Life Insurance Company | A- | NR | NR | NR | |||||||||||||||||||
| Unum Insurance Company | A- | A- | A3 | NR | |||||||||||||||||||
| Unum Limited | NR | NR | NR | A- | |||||||||||||||||||
NR = not rated
3
Unum Group Consolidated Statements of Income
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Premium Income | $ | 2,378.3 | $ | 2,371.4 | $ | 9,378.1 | $ | 9,365.6 | |||||||||||||||
| Net Investment Income | 548.7 | 585.0 | 2,360.7 | 2,435.3 | |||||||||||||||||||
| Net Realized Investment Gain (Loss) | 84.6 | (144.0) | 1,199.1 | (23.2) | |||||||||||||||||||
| Other Income | 60.4 | 58.7 | 224.2 | 221.2 | |||||||||||||||||||
| Total Revenue | 3,072.0 | 2,871.1 | 13,162.1 | 11,998.9 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 2,051.2 | 1,854.8 | 8,972.9 | 7,496.2 | |||||||||||||||||||
| Commissions | 259.9 | 279.2 | 1,057.3 | 1,122.7 | |||||||||||||||||||
| Interest and Debt Expense - Non-recourse Debt | — | 0.8 | 3.1 | 5.3 | |||||||||||||||||||
| Interest and Debt Expense - All Other Debt | 44.4 | 44.9 | 185.1 | 172.1 | |||||||||||||||||||
| Cost Related to Early Retirement of Debt | — | — | — | 27.3 | |||||||||||||||||||
| Deferral of Acquisition Costs | (130.6) | (162.0) | (576.2) | (658.6) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 166.4 | 176.2 | 606.1 | 609.9 | |||||||||||||||||||
| Other Expenses | 481.9 | 475.1 | 1,949.8 | 1,841.9 | |||||||||||||||||||
| Total Benefits and Expenses | 2,873.2 | 2,669.0 | 12,198.1 | 10,616.8 | |||||||||||||||||||
| Income Before Income Tax | 198.8 | 202.1 | 964.0 | 1,382.1 | |||||||||||||||||||
| Income Tax | 45.8 | 41.1 | 171.0 | 281.8 | |||||||||||||||||||
| Net Income | $ | 153.0 | $ | 161.0 | $ | 793.0 | $ | 1,100.3 | |||||||||||||||
| Weighted Average Shares Outstanding | |||||||||||||||||||||||
| Basic | 204.1 | 203.3 | 203.6 | 209.7 | |||||||||||||||||||
| Assuming Dilution | 204.7 | 203.4 | 203.8 | 209.9 | |||||||||||||||||||
| Actual Number of Shares Outstanding | 204.2 | 203.3 | 203.7 | 202.9 | |||||||||||||||||||
4
Unum Group Sales Data for Unum US Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | % Change | 12/31/2020 | 12/31/2019 | |||||||||||||||||||||||||
| Sales by Product | |||||||||||||||||||||||||||||
| Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||
| Group Long-term Disability | $ | 31.1 | $ | 31.4 | (1.0) | % | $ | 239.7 | $ | 241.5 | |||||||||||||||||||
| Group Short-term Disability | 24.1 | 14.2 | 69.7 | 158.7 | 159.2 | ||||||||||||||||||||||||
| Group Life and AD&D | 30.2 | 28.1 | 7.5 | 224.3 | 258.3 | ||||||||||||||||||||||||
| Subtotal | 85.4 | 73.7 | 15.9 | 622.7 | 659.0 | ||||||||||||||||||||||||
| Supplemental and Voluntary | |||||||||||||||||||||||||||||
| Individual Disability | 17.0 | 22.7 | (25.1) | 71.4 | 75.9 | ||||||||||||||||||||||||
| Voluntary Benefits | 101.0 | 128.6 | (21.5) | 241.6 | 300.6 | ||||||||||||||||||||||||
| Dental and Vision | 8.0 | 10.8 | (25.9) | 63.9 | 74.6 | ||||||||||||||||||||||||
| Subtotal | 126.0 | 162.1 | (22.3) | 376.9 | 451.1 | ||||||||||||||||||||||||
| Total Sales | $ | 211.4 | $ | 235.8 | (10.3) | $ | 999.6 | $ | 1,110.1 | ||||||||||||||||||||
| Sales by Market Sector | |||||||||||||||||||||||||||||
| Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||
| Core Market (< 2,000 employees) | $ | 58.2 | $ | 51.2 | 13.7 | % | $ | 377.0 | $ | 370.8 | |||||||||||||||||||
| Large Case Market | 27.2 | 22.5 | 20.9 | 245.7 | 288.2 | ||||||||||||||||||||||||
| Subtotal | 85.4 | 73.7 | 15.9 | 622.7 | 659.0 | ||||||||||||||||||||||||
| Supplemental and Voluntary | 126.0 | 162.1 | (22.3) | 376.9 | 451.1 | ||||||||||||||||||||||||
| Total Sales | $ | 211.4 | $ | 235.8 | (10.3) | $ | 999.6 | $ | 1,110.1 | ||||||||||||||||||||
5
Unum Group Sales Data for Unum International Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
| (in millions of dollars) | 3/31/2021 | 3/31/2020 | % Change | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||||||
| Sales by Product | |||||||||||||||||||||||||||||
| Unum UK | |||||||||||||||||||||||||||||
| Group Long-term Disability | $ | 8.1 | $ | 8.6 | (5.8) | % | $ | 37.7 | $ | 43.2 | |||||||||||||||||||
| Group Life | 6.5 | 5.6 | 16.1 | 20.6 | 24.3 | ||||||||||||||||||||||||
| Supplemental | 5.1 | 7.1 | (28.2) | 18.9 | 19.5 | ||||||||||||||||||||||||
| Unum Poland | 3.5 | 2.6 | 34.6 | 13.3 | 13.0 | ||||||||||||||||||||||||
| Total Sales | $ | 23.2 | $ | 23.9 | (2.9) | $ | 90.5 | $ | 100.0 | ||||||||||||||||||||
| Sales by Market Sector | |||||||||||||||||||||||||||||
| Unum UK | |||||||||||||||||||||||||||||
| Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||
| Core Market (< 500 employees) | $ | 8.2 | $ | 9.1 | (9.9) | % | $ | 36.2 | $ | 38.2 | |||||||||||||||||||
| Large Case Market | 6.4 | 5.1 | 25.5 | 22.1 | 29.3 | ||||||||||||||||||||||||
| Subtotal | 14.6 | 14.2 | 2.8 | 58.3 | 67.5 | ||||||||||||||||||||||||
| Supplemental | 5.1 | 7.1 | (28.2) | 18.9 | 19.5 | ||||||||||||||||||||||||
| Unum Poland | 3.5 | 2.6 | 34.6 | 13.3 | 13.0 | ||||||||||||||||||||||||
| Total Sales | $ | 23.2 | $ | 23.9 | (2.9) | $ | 90.5 | $ | 100.0 | ||||||||||||||||||||
| (in millions of pounds) | |||||||||||||||||||||||||||||
| Unum UK Sales by Product | |||||||||||||||||||||||||||||
| Group Long-term Disability | £ | 5.9 | £ | 6.7 | (11.9) | % | £ | 29.5 | £ | 33.7 | |||||||||||||||||||
| Group Life | 4.7 | 4.4 | 6.8 | 16.1 | 19.0 | ||||||||||||||||||||||||
| Supplemental | 3.7 | 5.4 | (31.5) | 14.9 | 15.1 | ||||||||||||||||||||||||
| Total Sales | £ | 14.3 | £ | 16.5 | (13.3) | £ | 60.5 | £ | 67.8 | ||||||||||||||||||||
| Unum UK Sales by Market Sector | |||||||||||||||||||||||||||||
| Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||
| Core Market (< 500 employees) | £ | 6.0 | £ | 7.2 | (16.7) | % | £ | 28.3 | £ | 29.9 | |||||||||||||||||||
| Large Case Market | 4.6 | 3.9 | 17.9 | 17.3 | 22.8 | ||||||||||||||||||||||||
| Subtotal | 10.6 | 11.1 | (4.5) | 45.6 | 52.7 | ||||||||||||||||||||||||
| Supplemental | 3.7 | 5.4 | (31.5) | 14.9 | 15.1 | ||||||||||||||||||||||||
| Total Sales | £ | 14.3 | £ | 16.5 | (13.3) | £ | 60.5 | £ | 67.8 | ||||||||||||||||||||
5. 1
Unum Group Sales Data for Colonial Life Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | % Change | 12/31/2020 | 12/31/2019 | |||||||||||||||||||||||||
| Sales by Product | |||||||||||||||||||||||||||||
| Accident, Sickness, and Disability | $ | 57.4 | $ | 64.6 | (11.1) | % | $ | 261.5 | $ | 354.4 | |||||||||||||||||||
| Life | 20.6 | 20.7 | (0.5) | 88.8 | 122.7 | ||||||||||||||||||||||||
| Cancer and Critical Illness | 12.2 | 14.0 | (12.9) | 62.8 | 88.9 | ||||||||||||||||||||||||
| Total Sales | $ | 90.2 | $ | 99.3 | (9.2) | $ | 413.1 | $ | 566.0 | ||||||||||||||||||||
| Sales by Market Sector | |||||||||||||||||||||||||||||
| Commercial | |||||||||||||||||||||||||||||
| Core Market (< 1,000 employees) | $ | 62.3 | $ | 67.6 | (7.8) | % | $ | 266.2 | $ | 345.7 | |||||||||||||||||||
| Large Case Market | 11.5 | 11.9 | (3.4) | 57.4 | 81.4 | ||||||||||||||||||||||||
| Subtotal | 73.8 | 79.5 | (7.2) | 323.6 | 427.1 | ||||||||||||||||||||||||
| Public Sector | 16.4 | 19.8 | (17.2) | 89.5 | 138.9 | ||||||||||||||||||||||||
| Total Sales | $ | 90.2 | $ | 99.3 | (9.2) | $ | 413.1 | $ | 566.0 | ||||||||||||||||||||
5. 2
Unum Group Consolidated Balance Sheets
| March 31 | December 31 | ||||||||||
| 2021 | 2020 | ||||||||||
| Assets | |||||||||||
| Investments | |||||||||||
| Fixed Maturity Securities | $ | 42,076.0 | $ | 44,137.3 | |||||||
| Mortgage Loans | 2,402.2 | 2,432.1 | |||||||||
| Policy Loans | 3,628.8 | 3,683.9 | |||||||||
| Other Long-term Investments | 995.3 | 960.2 | |||||||||
| Short-term Investments | 756.1 | 1,470.0 | |||||||||
| Total Investments | 49,858.4 | 52,683.5 | |||||||||
| Other Assets | |||||||||||
| Cash and Bank Deposits | 561.8 | 197.0 | |||||||||
| Accounts and Premiums Receivable | 1,656.1 | 1,519.3 | |||||||||
| Reinsurance Recoverable | 11,550.2 | 10,666.0 | |||||||||
| Accrued Investment Income | 668.7 | 611.4 | |||||||||
| Deferred Acquisition Costs | 2,254.8 | 2,272.6 | |||||||||
| Goodwill | 353.0 | 353.0 | |||||||||
| Property and Equipment | 500.6 | 498.0 | |||||||||
| Income Tax Receivable | 43.3 | 72.7 | |||||||||
| Other Assets | 1,809.7 | 1,752.3 | |||||||||
| Total Assets | $ | 69,256.6 | $ | 70,625.8 | |||||||
6
Unum Group Consolidated Balance Sheets - Continued
| March 31 | December 31 | ||||||||||
| 2021 | 2020 | ||||||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities | |||||||||||
| Policy and Contract Benefits | $ | 1,899.3 | $ | 1,855.4 | |||||||
| Reserves for Future Policy and Contract Benefits | 48,112.3 | 49,653.0 | |||||||||
| Unearned Premiums | 425.0 | 349.3 | |||||||||
| Other Policyholders’ Funds | 1,736.1 | 1,663.9 | |||||||||
| Deferred Income Tax | 319.2 | 416.1 | |||||||||
| Long-term Debt | 3,346.8 | 3,345.7 | |||||||||
| Other Liabilities | 2,847.8 | 2,471.4 | |||||||||
| Total Liabilities | 58,686.5 | 59,754.8 | |||||||||
| Stockholders’ Equity | |||||||||||
| Common Stock | 30.7 | 30.7 | |||||||||
| Additional Paid-in Capital | 2,380.8 | 2,376.2 | |||||||||
| Accumulated Other Comprehensive Income (Loss) | (24.9) | 374.2 | |||||||||
| Retained Earnings | 11,363.2 | 11,269.6 | |||||||||
| Treasury Stock | (3,179.7) | (3,179.7) | |||||||||
| Total Stockholders’ Equity | 10,570.1 | 10,871.0 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 69,256.6 | $ | 70,625.8 | |||||||
6. 1
Unum Group Deferred Acquisition Costs by Segment
| Unum US | Unum International | Colonial Life | Consolidated | ||||||||||||||||||||
| Balance at December 31, 2019 | $ | 1,223.0 | $ | 26.4 | $ | 1,074.6 | $ | 2,324.0 | |||||||||||||||
| Capitalization | 291.5 | 12.1 | 272.6 | 576.2 | |||||||||||||||||||
| Amortization | (341.0) | (7.4) | (257.7) | (606.1) | |||||||||||||||||||
| Adjustment Related to Unrealized Investment Gains and Losses | (4.8) | — | (17.6) | (22.4) | |||||||||||||||||||
| Foreign Currency | — | 0.9 | — | 0.9 | |||||||||||||||||||
| Balance at December 31, 2020 | 1,168.7 | 32.0 | 1,071.9 | 2,272.6 | |||||||||||||||||||
| Capitalization | 66.9 | 2.9 | 60.8 | 130.6 | |||||||||||||||||||
| Amortization | (98.7) | (2.1) | (65.6) | (166.4) | |||||||||||||||||||
| Adjustment Related to Unrealized Investment Gains and Losses | 4.1 | — | 14.4 | 18.5 | |||||||||||||||||||
| Foreign Currency | — | (0.5) | — | (0.5) | |||||||||||||||||||
| Balance at March 31, 2021 | $ | 1,141.0 | $ | 32.3 | $ | 1,081.5 | $ | 2,254.8 | |||||||||||||||
6. 2
Unum Group Balance Sheets by Segment - March 31, 2021
| Unum US | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Group Disability | Group Life and Accidental Death & Dismemberment | Supplemental and Voluntary | Total Unum US | Unum International | Colonial Life | Closed Block | Corporate | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | $ | 8,134.0 | $ | 2,426.7 | $ | 5,345.6 | $ | 15,906.3 | $ | 3,652.0 | $ | 3,543.1 | $ | 24,668.7 | $ | 2,088.3 | $ | 49,858.4 | |||||||||||||||||||||||||||||||||||
| Deferred Acquisition Costs | 95.0 | 76.2 | 969.8 | 1,141.0 | 32.3 | 1,081.5 | — | — | 2,254.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 8.9 | — | 271.1 | 280.0 | 45.3 | 27.7 | — | — | 353.0 | ||||||||||||||||||||||||||||||||||||||||||||
| All Other | 514.8 | 415.9 | 305.1 | 1,235.8 | 434.0 | 165.0 | 13,176.4 | 1,779.2 | 16,790.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 8,752.7 | $ | 2,918.8 | $ | 6,891.6 | $ | 18,563.1 | $ | 4,163.6 | $ | 4,817.3 | $ | 37,845.1 | $ | 3,867.5 | $ | 69,256.6 | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reserves and Policyholder Benefits | $ | 7,210.8 | $ | 1,913.3 | $ | 4,260.9 | $ | 13,385.0 | $ | 3,141.4 | $ | 2,906.0 | $ | 32,740.3 | $ | — | $ | 52,172.7 | |||||||||||||||||||||||||||||||||||
| Debt | — | — | — | — | — | — | — | 3,346.8 | 3,346.8 | ||||||||||||||||||||||||||||||||||||||||||||
| All Other | 118.7 | 79.3 | 345.3 | 543.3 | 155.6 | 177.6 | 659.2 | 1,631.3 | 3,167.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 7,329.5 | 1,992.6 | 4,606.2 | 13,928.3 | 3,297.0 | 3,083.6 | 33,399.5 | 4,978.1 | 58,686.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Allocated Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Allocated Stockholders' Equity | 1,403.4 | 892.1 | 2,082.7 | 4,378.2 | 821.2 | 1,573.9 | 4,324.6 | (1,283.1) | 9,814.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges | 19.8 | 34.1 | 202.7 | 256.6 | 45.4 | 159.8 | 121.0 | 172.5 | 755.3 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Allocated Stockholders' Equity | 1,423.2 | 926.2 | 2,285.4 | 4,634.8 | 866.6 | 1,733.7 | 4,445.6 | (1,110.6) | 10,570.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Allocated Stockholders' Equity | $ | 8,752.7 | $ | 2,918.8 | $ | 6,891.6 | $ | 18,563.1 | $ | 4,163.6 | $ | 4,817.3 | $ | 37,845.1 | $ | 3,867.5 | $ | 69,256.6 | |||||||||||||||||||||||||||||||||||
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. 3
Unum Group Balance Sheets by Segment - December 31, 2020
| Unum US | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Group Disability | Group Life and Accidental Death & Dismemberment | Supplemental and Voluntary | Total Unum US | Unum International | Colonial Life | Closed Block | Corporate | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | $ | 8,388.5 | $ | 2,425.8 | $ | 5,401.5 | $ | 16,215.8 | $ | 3,749.0 | $ | 3,511.2 | $ | 26,543.7 | $ | 2,663.8 | $ | 52,683.5 | |||||||||||||||||||||||||||||||||||
| Deferred Acquisition Costs | 95.3 | 76.4 | 997.0 | 1,168.7 | 32.0 | 1,071.9 | — | — | 2,272.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 8.9 | — | 271.1 | 280.0 | 45.3 | 27.7 | — | — | 353.0 | ||||||||||||||||||||||||||||||||||||||||||||
| All Other | 486.0 | 408.5 | 475.2 | 1,369.7 | 379.9 | 253.5 | 11,624.0 | 1,689.6 | 15,316.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 8,978.7 | $ | 2,910.7 | $ | 7,144.8 | $ | 19,034.2 | $ | 4,206.2 | $ | 4,864.3 | $ | 38,167.7 | $ | 4,353.4 | $ | 70,625.8 | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reserves and Policyholder Benefits | $ | 7,442.2 | $ | 1,878.3 | $ | 4,401.1 | $ | 13,721.6 | $ | 3,144.9 | $ | 2,892.8 | $ | 33,762.3 | $ | — | $ | 53,521.6 | |||||||||||||||||||||||||||||||||||
| Debt | — | — | — | — | — | — | — | 3,345.7 | 3,345.7 | ||||||||||||||||||||||||||||||||||||||||||||
| All Other | 106.1 | 62.2 | 366.2 | 534.5 | 128.2 | 135.6 | 290.8 | 1,798.4 | 2,887.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 7,548.3 | 1,940.5 | 4,767.3 | 14,256.1 | 3,273.1 | 3,028.4 | 34,053.1 | 5,144.1 | 59,754.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Allocated Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Allocated Stockholders' Equity | 1,404.7 | 903.8 | 2,103.9 | 4,412.4 | 823.5 | 1,621.7 | 3,890.5 | (1,042.6) | 9,705.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Net Unrealized Gain on Securities and Net Gain on Hedges | 25.7 | 66.4 | 273.6 | 365.7 | 109.6 | 214.2 | 224.1 | 251.9 | 1,165.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Allocated Stockholders' Equity | 1,430.4 | 970.2 | 2,377.5 | 4,778.1 | 933.1 | 1,835.9 | 4,114.6 | (790.7) | 10,871.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Allocated Stockholders' Equity | $ | 8,978.7 | $ | 2,910.7 | $ | 7,144.8 | $ | 19,034.2 | $ | 4,206.2 | $ | 4,864.3 | $ | 38,167.7 | $ | 4,353.4 | $ | 70,625.8 | |||||||||||||||||||||||||||||||||||
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 the amortization of the cost of reinsurance as well as 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 Ended | Year Ended | ||||||||||||||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | % Change | 12/31/2020 | 12/31/2019 | % Change | ||||||||||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,525.8 | $ | 1,527.7 | (0.1) | % | $ | 6,018.9 | $ | 6,016.6 | — | % | |||||||||||||||||||||||
| Unum International | 174.4 | 164.6 | 6.0 | 652.8 | 630.5 | 3.5 | |||||||||||||||||||||||||||||
| Colonial Life | 426.4 | 434.7 | (1.9) | 1,712.0 | 1,685.0 | 1.6 | |||||||||||||||||||||||||||||
| Closed Block | 251.7 | 244.4 | 3.0 | 994.4 | 1,033.5 | (3.8) | |||||||||||||||||||||||||||||
| 2,378.3 | 2,371.4 | 0.3 | 9,378.1 | 9,365.6 | 0.1 | ||||||||||||||||||||||||||||||
| Net Investment Income | |||||||||||||||||||||||||||||||||||
| Unum US | 179.7 | 179.6 | 0.1 | 720.3 | 739.4 | (2.6) | |||||||||||||||||||||||||||||
| Unum International | 26.0 | 26.5 | (1.9) | 104.6 | 122.5 | (14.6) | |||||||||||||||||||||||||||||
| Colonial Life | 37.7 | 37.7 | — | 155.7 | 148.0 | 5.2 | |||||||||||||||||||||||||||||
| Closed Block | 297.2 | 336.1 | (11.6) | 1,370.3 | 1,404.9 | (2.5) | |||||||||||||||||||||||||||||
| Corporate | 8.1 | 5.1 | 58.8 | 9.8 | 20.5 | (52.2) | |||||||||||||||||||||||||||||
| 548.7 | 585.0 | (6.2) | 2,360.7 | 2,435.3 | (3.1) | ||||||||||||||||||||||||||||||
| Other Income | |||||||||||||||||||||||||||||||||||
| Unum US | 40.4 | 40.2 | 0.5 | 154.9 | 142.8 | 8.5 | |||||||||||||||||||||||||||||
| Unum International | 0.1 | — | — | 0.5 | 0.6 | (16.7) | |||||||||||||||||||||||||||||
| Colonial Life | 0.2 | 0.3 | (33.3) | 1.1 | 3.4 | (67.6) | |||||||||||||||||||||||||||||
| Closed Block | 18.4 | 18.2 | 1.1 | 66.6 | 71.3 | (6.6) | |||||||||||||||||||||||||||||
| Corporate | 1.3 | — | — | 1.1 | 3.1 | (64.5) | |||||||||||||||||||||||||||||
| 60.4 | 58.7 | 2.9 | 224.2 | 221.2 | 1.4 | ||||||||||||||||||||||||||||||
| Total Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
| Unum US | 1,745.9 | 1,747.5 | (0.1) | 6,894.1 | 6,898.8 | (0.1) | |||||||||||||||||||||||||||||
| Unum International | 200.5 | 191.1 | 4.9 | 757.9 | 753.6 | 0.6 | |||||||||||||||||||||||||||||
| Colonial Life | 464.3 | 472.7 | (1.8) | 1,868.8 | 1,836.4 | 1.8 | |||||||||||||||||||||||||||||
| Closed Block | 567.3 | 598.7 | (5.2) | 2,431.3 | 2,509.7 | (3.1) | |||||||||||||||||||||||||||||
| Corporate | 9.4 | 5.1 | 84.3 | 10.9 | 23.6 | (53.8) | |||||||||||||||||||||||||||||
| $ | 2,987.4 | $ | 3,015.1 | (0.9) | $ | 11,963.0 | $ | 12,022.1 | (0.5) | ||||||||||||||||||||||||||
7
Unum Group Financial Results by Segment - Continued
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | % Change | 12/31/2020 | 12/31/2019 | % Change | ||||||||||||||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,630.2 | $ | 1,485.7 | 9.7 | % | $ | 6,068.7 | $ | 5,867.7 | 3.4 | % | |||||||||||||||||||||||
| Unum International | 174.1 | 171.7 | 1.4 | 681.3 | 645.7 | 5.5 | |||||||||||||||||||||||||||||
| Colonial Life | 391.0 | 391.6 | (0.2) | 1,533.4 | 1,491.9 | 2.8 | |||||||||||||||||||||||||||||
| Closed Block | 629.6 | 569.0 | 10.7 | 3,667.0 | 2,372.0 | 54.6 | |||||||||||||||||||||||||||||
| Corporate | 48.3 | 51.0 | (5.3) | 247.7 | 239.5 | 3.4 | |||||||||||||||||||||||||||||
| 2,873.2 | 2,669.0 | 7.7 | 12,198.1 | 10,616.8 | 14.9 | ||||||||||||||||||||||||||||||
| Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss) | |||||||||||||||||||||||||||||||||||
| Unum US | 115.7 | 261.8 | (55.8) | 825.4 | 1,031.1 | (19.9) | |||||||||||||||||||||||||||||
| Unum International | 26.4 | 19.4 | 36.1 | 76.6 | 107.9 | (29.0) | |||||||||||||||||||||||||||||
| Colonial Life | 73.3 | 81.1 | (9.6) | 335.4 | 344.5 | (2.6) | |||||||||||||||||||||||||||||
| Closed Block | (62.3) | 29.7 | (309.8) | (1,235.7) | 137.7 | N.M. | |||||||||||||||||||||||||||||
| Corporate | (38.9) | (45.9) | 15.3 | (236.8) | (215.9) | (9.7) | |||||||||||||||||||||||||||||
| 114.2 | 346.1 | (67.0) | (235.1) | 1,405.3 | (116.7) | ||||||||||||||||||||||||||||||
| Income Tax | 28.1 | 72.0 | (61.0) | (81.6) | 286.3 | (128.5) | |||||||||||||||||||||||||||||
| Income Before Net Realized Investment Gain (Loss) | 86.1 | 274.1 | (68.6) | (153.5) | 1,119.0 | (113.7) | |||||||||||||||||||||||||||||
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $17.7; $(30.9); $252.6; $(4.5)) | 66.9 | (113.1) | (159.2) | 946.5 | (18.7) | N.M. | |||||||||||||||||||||||||||||
| Net Income | $ | 153.0 | $ | 161.0 | (5.0) | $ | 793.0 | $ | 1,100.3 | (27.9) | |||||||||||||||||||||||||
7. 1
Unum Group Quarterly Historical Financial Results by Segment
| 3/31/21 | 12/31/20 | 9/30/20 | 6/30/20 | 3/31/20 | 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | |||||||||||||||||||||||||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,525.8 | $ | 1,485.1 | $ | 1,483.4 | $ | 1,522.7 | $ | 1,527.7 | $ | 1,508.3 | $ | 1,501.9 | $ | 1,504.5 | $ | 1,501.9 | |||||||||||||||||||||||||||||||||||
| Unum International | 174.4 | 165.7 | 165.4 | 157.1 | 164.6 | 165.6 | 152.3 | 158.6 | 154.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Colonial Life | 426.4 | 418.8 | 419.9 | 438.6 | 434.7 | 424.9 | 419.9 | 420.9 | 419.3 | ||||||||||||||||||||||||||||||||||||||||||||
| Closed Block | 251.7 | 250.3 | 249.4 | 250.3 | 244.4 | 253.8 | 257.1 | 259.1 | 263.5 | ||||||||||||||||||||||||||||||||||||||||||||
| 2,378.3 | 2,319.9 | 2,318.1 | 2,368.7 | 2,371.4 | 2,352.6 | 2,331.2 | 2,343.1 | 2,338.7 | |||||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unum US | 179.7 | 173.1 | 190.7 | 176.9 | 179.6 | 189.0 | 184.2 | 184.1 | 182.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Unum International | 26.0 | 25.5 | 26.3 | 26.3 | 26.5 | 28.6 | 24.3 | 44.8 | 24.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Colonial Life | 37.7 | 37.5 | 43.7 | 36.8 | 37.7 | 37.0 | 36.9 | 37.2 | 36.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Closed Block | 297.2 | 356.7 | 351.2 | 326.3 | 336.1 | 356.6 | 347.3 | 354.5 | 346.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 8.1 | 0.7 | 1.3 | 2.7 | 5.1 | 5.1 | 6.7 | 4.3 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||||
| 548.7 | 593.5 | 613.2 | 569.0 | 585.0 | 616.3 | 599.4 | 624.9 | 594.7 | |||||||||||||||||||||||||||||||||||||||||||||
| Other Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unum US | 40.4 | 37.4 | 42.0 | 35.3 | 40.2 | 36.7 | 34.8 | 36.8 | 34.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Unum International | 0.1 | 0.1 | 0.2 | 0.2 | — | 0.3 | — | 0.3 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Colonial Life | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 1.2 | 0.9 | 0.7 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Closed Block | 18.4 | 16.9 | 17.8 | 13.7 | 18.2 | 17.8 | 18.9 | 16.5 | 18.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 1.3 | 0.6 | 0.3 | 0.2 | — | 0.5 | 1.0 | 1.7 | — | ||||||||||||||||||||||||||||||||||||||||||||
| 60.4 | 55.2 | 60.6 | 49.7 | 58.7 | 56.5 | 55.6 | 56.0 | 53.1 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unum US | 1,745.9 | 1,695.6 | 1,716.1 | 1,734.9 | 1,747.5 | 1,734.0 | 1,720.9 | 1,725.4 | 1,718.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Unum International | 200.5 | 191.3 | 191.9 | 183.6 | 191.1 | 194.5 | 176.6 | 203.7 | 178.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Colonial Life | 464.3 | 456.5 | 463.9 | 475.7 | 472.7 | 463.1 | 457.7 | 458.8 | 456.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Closed Block | 567.3 | 623.9 | 618.4 | 590.3 | 598.7 | 628.2 | 623.3 | 630.1 | 628.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 9.4 | 1.3 | 1.6 | 2.9 | 5.1 | 5.6 | 7.7 | 6.0 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 2,987.4 | $ | 2,968.6 | $ | 2,991.9 | $ | 2,987.4 | $ | 3,015.1 | $ | 3,025.4 | $ | 2,986.2 | $ | 3,024.0 | $ | 2,986.5 | ||||||||||||||||||||||||||||||||||||
8
Unum Group Quarterly Historical Financial Results by Segment - Continued
| 3/31/21 | 12/31/20 | 9/30/20 | 6/30/20 | 3/31/20 | 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | |||||||||||||||||||||||||||||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,630.2 | $ | 1,552.1 | $ | 1,527.9 | $ | 1,503.0 | $ | 1,485.7 | $ | 1,470.9 | $ | 1,459.5 | $ | 1,471.1 | $ | 1,466.2 | |||||||||||||||||||||||||||||||||||
| Unum International | 174.1 | 170.6 | 170.5 | 168.5 | 171.7 | 170.6 | 152.4 | 173.0 | 149.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Colonial Life | 391.0 | 385.3 | 371.7 | 384.8 | 391.6 | 375.4 | 370.5 | 374.4 | 371.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Closed Block | 629.6 | 1,996.8 | 547.6 | 553.6 | 569.0 | 582.1 | 596.4 | 596.4 | 597.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 48.3 | 44.0 | 79.0 | 73.7 | 51.0 | 58.2 | 81.8 | 49.8 | 49.7 | ||||||||||||||||||||||||||||||||||||||||||||
| 2,873.2 | 4,148.8 | 2,696.7 | 2,683.6 | 2,669.0 | 2,657.2 | 2,660.6 | 2,664.7 | 2,634.3 | |||||||||||||||||||||||||||||||||||||||||||||
| Income Before Income Tax Expense (Benefit) and Net Realized Investment Gain (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unum US | 115.7 | 143.5 | 188.2 | 231.9 | 261.8 | 263.1 | 261.4 | 254.3 | 252.3 | ||||||||||||||||||||||||||||||||||||||||||||
| Unum International | 26.4 | 20.7 | 21.4 | 15.1 | 19.4 | 23.9 | 24.2 | 30.7 | 29.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Colonial Life | 73.3 | 71.2 | 92.2 | 90.9 | 81.1 | 87.7 | 87.2 | 84.4 | 85.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Closed Block | (62.3) | (1,372.9) | 70.8 | 36.7 | 29.7 | 46.1 | 26.9 | 33.7 | 31.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | (38.9) | (42.7) | (77.4) | (70.8) | (45.9) | (52.6) | (74.1) | (43.8) | (45.4) | ||||||||||||||||||||||||||||||||||||||||||||
| 114.2 | (1,180.2) | 295.2 | 303.8 | 346.1 | 368.2 | 325.6 | 359.3 | 352.2 | |||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | 28.1 | (285.2) | 67.9 | 63.7 | 72.0 | 79.2 | 62.8 | 72.4 | 71.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Income Before Net Realized Investment Gain (Loss) | 86.1 | (895.0) | 227.3 | 240.1 | 274.1 | 289.0 | 262.8 | 286.9 | 280.3 | ||||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) | 84.6 | 1,304.9 | 4.4 | 33.8 | (144.0) | 9.2 | (26.2) | (7.3) | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Tax Expense (Benefit) on Net Realized Investment Gain (Loss) | 17.7 | 274.5 | 0.6 | 8.4 | (30.9) | 2.0 | (5.4) | (1.6) | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Net Income | $ | 153.0 | $ | 135.4 | $ | 231.1 | $ | 265.5 | $ | 161.0 | $ | 296.2 | $ | 242.0 | $ | 281.2 | $ | 280.9 | |||||||||||||||||||||||||||||||||||
| Net Income Per Common Share - Assuming Dilution | $ | 0.75 | $ | 0.66 | $ | 1.13 | $ | 1.30 | $ | 0.79 | $ | 1.44 | $ | 1.16 | $ | 1.33 | $ | 1.31 | |||||||||||||||||||||||||||||||||||
8. 1
Unum Group Financial Results for Unum US Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | $ | 1,525.8 | $ | 1,527.7 | $ | 6,018.9 | $ | 6,016.6 | |||||||||||||||
| Net Investment Income | 179.7 | 179.6 | 720.3 | 739.4 | |||||||||||||||||||
| Other Income | 40.4 | 40.2 | 154.9 | 142.8 | |||||||||||||||||||
| Total | 1,745.9 | 1,747.5 | 6,894.1 | 6,898.8 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 1,133.3 | 984.6 | 4,138.7 | 4,022.1 | |||||||||||||||||||
| Commissions | 147.9 | 154.3 | 594.9 | 628.5 | |||||||||||||||||||
| Deferral of Acquisition Costs | (66.9) | (79.6) | (291.5) | (334.5) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 98.7 | 107.7 | 341.0 | 344.0 | |||||||||||||||||||
| Other Expenses | 317.2 | 318.7 | 1,285.6 | 1,207.6 | |||||||||||||||||||
| Total | 1,630.2 | 1,485.7 | 6,068.7 | 5,867.7 | |||||||||||||||||||
| Adjusted Operating Income | $ | 115.7 | $ | 261.8 | $ | 825.4 | $ | 1,031.1 | |||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 74.3 | % | 64.4 | % | 68.8 | % | 66.9 | % | |||||||||||||||
| Other Expense Ratio | 20.8 | % | 20.9 | % | 21.4 | % | 20.1 | % | |||||||||||||||
| Adjusted Operating Income Ratio | 7.6 | % | 17.1 | % | 13.7 | % | 17.1 | % | |||||||||||||||
9
Unum Group Financial Results for Unum US Group Disability
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Group Long-term Disability | $ | 457.7 | $ | 463.0 | $ | 1,828.5 | $ | 1,823.1 | |||||||||||||||
| Group Short-term Disability | 215.2 | 203.2 | 799.2 | 768.8 | |||||||||||||||||||
| Total Premium Income | 672.9 | 666.2 | 2,627.7 | 2,591.9 | |||||||||||||||||||
| Net Investment Income | 97.4 | 93.4 | 388.8 | 401.5 | |||||||||||||||||||
| Other Income | 39.5 | 38.4 | 147.6 | 133.8 | |||||||||||||||||||
| Total | 809.8 | 798.0 | 3,164.1 | 3,127.2 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 503.3 | 487.4 | 1,921.9 | 1,927.9 | |||||||||||||||||||
| Commissions | 51.3 | 49.9 | 191.8 | 193.8 | |||||||||||||||||||
| Deferral of Acquisition Costs | (12.6) | (12.8) | (49.3) | (49.5) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 12.9 | 13.3 | 53.1 | 50.7 | |||||||||||||||||||
| Other Expenses | 190.8 | 183.9 | 756.6 | 672.1 | |||||||||||||||||||
| Total | 745.7 | 721.7 | 2,874.1 | 2,795.0 | |||||||||||||||||||
| Adjusted Operating Income | $ | 64.1 | $ | 76.3 | $ | 290.0 | $ | 332.2 | |||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 74.8 | % | 73.2 | % | 73.1 | % | 74.4 | % | |||||||||||||||
| Other Expense Ratio | 28.4 | % | 27.6 | % | 28.8 | % | 25.9 | % | |||||||||||||||
| Adjusted Operating Income Ratio | 9.5 | % | 11.5 | % | 11.0 | % | 12.8 | % | |||||||||||||||
| Persistency: | |||||||||||||||||||||||
| Group Long-term Disability | 90.7 | % | 90.6 | % | 90.8 | % | 90.7 | % | |||||||||||||||
| Group Short-term Disability | 86.1 | % | 86.1 | % | 88.7 | % | 89.8 | % | |||||||||||||||
9. 1
Unum Group Financial Results for Unum US Group Life and Accidental Death & Dismemberment
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Group Life | $ | 410.0 | $ | 414.5 | $ | 1,640.5 | $ | 1,662.0 | |||||||||||||||
| Accidental Death & Dismemberment | 41.4 | 41.7 | 163.9 | 165.7 | |||||||||||||||||||
| Total Premium Income | 451.4 | 456.2 | 1,804.4 | 1,827.7 | |||||||||||||||||||
| Net Investment Income | 24.9 | 25.7 | 97.2 | 107.4 | |||||||||||||||||||
| Other Income | 0.3 | 0.5 | 2.4 | 2.7 | |||||||||||||||||||
| Total | 476.6 | 482.4 | 1,904.0 | 1,937.8 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 445.8 | 322.1 | 1,470.4 | 1,314.1 | |||||||||||||||||||
| Commissions | 36.8 | 36.4 | 143.2 | 147.7 | |||||||||||||||||||
| Deferral of Acquisition Costs | (9.4) | (9.5) | (36.0) | (37.8) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 9.6 | 9.9 | 39.3 | 38.1 | |||||||||||||||||||
| Other Expenses | 52.1 | 53.1 | 205.3 | 209.0 | |||||||||||||||||||
| Total | 534.9 | 412.0 | 1,822.2 | 1,671.1 | |||||||||||||||||||
| Adjusted Operating Income (Loss) | $ | (58.3) | $ | 70.4 | $ | 81.8 | $ | 266.7 | |||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 98.8 | % | 70.6 | % | 81.5 | % | 71.9 | % | |||||||||||||||
| Other Expense Ratio | 11.5 | % | 11.6 | % | 11.4 | % | 11.4 | % | |||||||||||||||
| Adjusted Operating Income Ratio | (12.9) | % | 15.4 | % | 4.5 | % | 14.6 | % | |||||||||||||||
| Persistency: | |||||||||||||||||||||||
| Group Life | 90.1 | % | 88.4 | % | 88.8 | % | 90.6 | % | |||||||||||||||
| Accidental Death & Dismemberment | 89.7 | % | 87.9 | % | 88.2 | % | 89.9 | % | |||||||||||||||
9. 2
Unum Group Financial Results for Unum US Supplemental and Voluntary
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Individual Disability | $ | 115.7 | $ | 109.5 | $ | 456.0 | $ | 440.7 | |||||||||||||||
| Voluntary Benefits | 218.7 | 230.4 | 875.2 | 910.2 | |||||||||||||||||||
| Dental and Vision | 67.1 | 65.4 | 255.6 | 246.1 | |||||||||||||||||||
| Total Premium Income | 401.5 | 405.3 | 1,586.8 | 1,597.0 | |||||||||||||||||||
| Net Investment Income | 57.4 | 60.5 | 234.3 | 230.5 | |||||||||||||||||||
| Other Income | 0.6 | 1.3 | 4.9 | 6.3 | |||||||||||||||||||
| Total | 459.5 | 467.1 | 1,826.0 | 1,833.8 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 184.2 | 175.1 | 746.4 | 780.1 | |||||||||||||||||||
| Commissions | 59.8 | 68.0 | 259.9 | 287.0 | |||||||||||||||||||
| Deferral of Acquisition Costs | (44.9) | (57.3) | (206.2) | (247.2) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 76.2 | 84.5 | 248.6 | 255.2 | |||||||||||||||||||
| Other Expenses | 74.3 | 81.7 | 323.7 | 326.5 | |||||||||||||||||||
| Total | 349.6 | 352.0 | 1,372.4 | 1,401.6 | |||||||||||||||||||
| Adjusted Operating Income | $ | 109.9 | $ | 115.1 | $ | 453.6 | $ | 432.2 | |||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratios: | |||||||||||||||||||||||
| Individual Disability | 42.4 | % | 52.1 | % | 48.8 | % | 50.9 | % | |||||||||||||||
| Voluntary Benefits | 39.3 | % | 32.7 | % | 42.2 | % | 41.8 | % | |||||||||||||||
| Dental and Vision | 73.2 | % | 65.1 | % | 60.6 | % | 71.1 | % | |||||||||||||||
| Other Expense Ratio | 18.5 | % | 20.2 | % | 20.4 | % | 20.4 | % | |||||||||||||||
| Adjusted Operating Income Ratio | 27.4 | % | 28.4 | % | 28.6 | % | 27.1 | % | |||||||||||||||
| Persistency: | |||||||||||||||||||||||
| Individual Disability | 90.2 | % | 88.9 | % | 89.5 | % | 89.8 | % | |||||||||||||||
| Voluntary Benefits | 74.3 | % | 72.4 | % | 72.7 | % | 73.2 | % | |||||||||||||||
| Dental and Vision | 87.4 | % | 81.9 | % | 85.0 | % | 82.6 | % | |||||||||||||||
9. 3
Unum Group Financial Results for Unum International Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Unum UK | |||||||||||||||||||||||
| Group Long-term Disability | $ | 97.1 | $ | 90.8 | $ | 364.9 | $ | 353.4 | |||||||||||||||
| Group Life | 27.3 | 30.9 | 108.5 | 115.7 | |||||||||||||||||||
| Supplemental | 28.0 | 23.9 | 99.8 | 89.5 | |||||||||||||||||||
| Unum Poland | 22.0 | 19.0 | 79.6 | 71.9 | |||||||||||||||||||
| Total Premium Income | 174.4 | 164.6 | 652.8 | 630.5 | |||||||||||||||||||
| Net Investment Income | 26.0 | 26.5 | 104.6 | 122.5 | |||||||||||||||||||
| Other Income | 0.1 | — | 0.5 | 0.6 | |||||||||||||||||||
| Total | 200.5 | 191.1 | 757.9 | 753.6 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 129.5 | 128.6 | 500.9 | 469.8 | |||||||||||||||||||
| Commissions | 12.9 | 12.3 | 49.7 | 48.7 | |||||||||||||||||||
| Deferral of Acquisition Costs | (2.9) | (3.0) | (12.1) | (12.8) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 2.1 | 1.8 | 7.4 | 7.1 | |||||||||||||||||||
| Other Expenses | 32.5 | 32.0 | 135.4 | 132.9 | |||||||||||||||||||
| Total | 174.1 | 171.7 | 681.3 | 645.7 | |||||||||||||||||||
| Adjusted Operating Income | $ | 26.4 | $ | 19.4 | $ | 76.6 | $ | 107.9 | |||||||||||||||
10
Unum Group Financial Results for Unum UK
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| (in millions of pounds, except exchange rate) | 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | |||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Group Long-term Disability | £ | 70.4 | £ | 71.0 | £ | 284.2 | £ | 276.8 | |||||||||||||||
| Group Life | 19.8 | 24.2 | 84.6 | 90.7 | |||||||||||||||||||
| Supplemental | 20.3 | 18.6 | 77.7 | 70.0 | |||||||||||||||||||
| Total Premium Income | 110.5 | 113.8 | 446.5 | 437.5 | |||||||||||||||||||
| Net Investment Income | 17.4 | 19.3 | 76.0 | 90.5 | |||||||||||||||||||
| Other Income | — | — | 0.1 | 0.2 | |||||||||||||||||||
| Total | 127.9 | 133.1 | 522.6 | 528.2 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 83.2 | 91.6 | 352.5 | 335.5 | |||||||||||||||||||
| Commissions | 6.7 | 7.1 | 28.1 | 28.6 | |||||||||||||||||||
| Deferral of Acquisition Costs | (0.8) | (1.2) | (4.2) | (5.4) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 1.3 | 1.4 | 5.3 | 5.4 | |||||||||||||||||||
| Other Expenses | 18.9 | 20.5 | 86.5 | 83.7 | |||||||||||||||||||
| Total | 109.3 | 119.4 | 468.2 | 447.8 | |||||||||||||||||||
| Adjusted Operating Income | £ | 18.6 | £ | 13.7 | £ | 54.4 | £ | 80.4 | |||||||||||||||
| Weighted Average Pound/Dollar Exchange Rate | 1.382 | 1.277 | 1.287 | 1.279 | |||||||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 75.3 | % | 80.5 | % | 78.9 | % | 76.7 | % | |||||||||||||||
| Other Expense Ratio | 17.1 | % | 18.0 | % | 19.4 | % | 19.1 | % | |||||||||||||||
| Adjusted Operating Income Ratio | 16.8 | % | 12.0 | % | 12.2 | % | 18.4 | % | |||||||||||||||
| Persistency: | |||||||||||||||||||||||
| Group Long-term Disability | 87.0 | % | 90.1 | % | 88.2 | % | 89.9 | % | |||||||||||||||
| Group Life | 87.2 | % | 86.3 | % | 81.8 | % | 89.0 | % | |||||||||||||||
| Supplemental | 88.2 | % | 91.2 | % | 90.7 | % | 89.9 | % | |||||||||||||||
10. 1
Unum Group Financial Results for Colonial Life Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Accident, Sickness, and Disability | $ | 240.7 | $ | 249.3 | $ | 975.1 | $ | 973.4 | |||||||||||||||
| Life | 96.6 | 93.8 | 376.4 | 351.6 | |||||||||||||||||||
| Cancer and Critical Illness | 89.1 | 91.6 | 360.5 | 360.0 | |||||||||||||||||||
| Total Premium Income | 426.4 | 434.7 | 1,712.0 | 1,685.0 | |||||||||||||||||||
| Net Investment Income | 37.7 | 37.7 | 155.7 | 148.0 | |||||||||||||||||||
| Other Income | 0.2 | 0.3 | 1.1 | 3.4 | |||||||||||||||||||
| Total | 464.3 | 472.7 | 1,868.8 | 1,836.4 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 236.2 | 228.0 | 906.5 | 865.0 | |||||||||||||||||||
| Commissions | 78.3 | 93.0 | 334.3 | 364.5 | |||||||||||||||||||
| Deferral of Acquisition Costs | (60.8) | (79.4) | (272.6) | (311.3) | |||||||||||||||||||
| Amortization of Deferred Acquisition Costs | 65.6 | 66.7 | 257.7 | 258.8 | |||||||||||||||||||
| Other Expenses | 71.7 | 83.3 | 307.5 | 314.9 | |||||||||||||||||||
| Total | 391.0 | 391.6 | 1,533.4 | 1,491.9 | |||||||||||||||||||
| Adjusted Operating Income | $ | 73.3 | $ | 81.1 | $ | 335.4 | $ | 344.5 | |||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
| Benefit Ratio | 55.4 | % | 52.4 | % | 52.9 | % | 51.3 | % | |||||||||||||||
| Other Expense Ratio | 16.7 | % | 19.2 | % | 18.0 | % | 18.7 | % | |||||||||||||||
| Adjusted Operating Income Ratio | 17.2 | % | 18.7 | % | 19.6 | % | 20.4 | % | |||||||||||||||
| Persistency: | |||||||||||||||||||||||
| Accident, Sickness, and Disability | 75.0 | % | 73.0 | % | 74.3 | % | 73.2 | % | |||||||||||||||
| Life | 84.1 | % | 83.0 | % | 83.7 | % | 83.4 | % | |||||||||||||||
| Cancer and Critical Illness | 82.3 | % | 80.9 | % | 81.8 | % | 80.6 | % | |||||||||||||||
11
Unum Group Financial Results for Closed Block Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Premium Income | |||||||||||||||||||||||
| Long-term Care | $ | 177.4 | $ | 164.8 | $ | 666.9 | $ | 651.6 | |||||||||||||||
| Individual Disability | 72.1 | 77.0 | 319.6 | 374.3 | |||||||||||||||||||
| All Other | 2.2 | 2.6 | 7.9 | 7.6 | |||||||||||||||||||
| Total Premium Income | 251.7 | 244.4 | 994.4 | 1,033.5 | |||||||||||||||||||
| Net Investment Income | 297.2 | 336.1 | 1,370.3 | 1,404.9 | |||||||||||||||||||
| Other Income | 18.4 | 18.2 | 66.6 | 71.3 | |||||||||||||||||||
| Total | 567.3 | 598.7 | 2,431.3 | 2,509.7 | |||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 552.2 | 513.6 | 3,426.8 | 2,139.3 | |||||||||||||||||||
| Commissions | 20.8 | 19.6 | 78.4 | 81.0 | |||||||||||||||||||
| Interest and Debt Expense | — | 0.8 | 3.1 | 5.3 | |||||||||||||||||||
| Other Expenses | 56.6 | 35.0 | 158.7 | 146.4 | |||||||||||||||||||
| Total | 629.6 | 569.0 | 3,667.0 | 2,372.0 | |||||||||||||||||||
| Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses | (62.3) | 29.7 | (1,235.7) | 137.7 | |||||||||||||||||||
| Long-term Care Reserve Increase | — | — | 151.5 | — | |||||||||||||||||||
| Group Pension Reserve Increase | — | — | 17.5 | — | |||||||||||||||||||
| Impacts from Closed Block Individual Disability Reinsurance Transaction | 139.3 | — | 1,305.5 | — | |||||||||||||||||||
| Amortization of the Cost of Reinsurance | 20.0 | — | 2.6 | — | |||||||||||||||||||
| Adjusted Operating Income | $ | 97.0 | $ | 29.7 | $ | 241.4 | $ | 137.7 | |||||||||||||||
| Interest Adjusted Loss Ratios: | |||||||||||||||||||||||
Long-term Care1 | 77.7 | % | 81.0 | % | 91.9 | % | 88.1 | % | |||||||||||||||
| Long-term Care Excluding Reserve Increase | 68.9 | % | |||||||||||||||||||||
Individual Disability2 | 68.9 | % | 84.5 | % | 85.1 | % | 78.8 | % | |||||||||||||||
| Operating Ratios (% of Premium Income): | |||||||||||||||||||||||
Other Expense Ratio3 | 12.1 | % | 14.3 | % | 13.6 | % | 14.2 | % | |||||||||||||||
| Income (Loss) Ratio | (24.8) | % | (124.3) | % | |||||||||||||||||||
| Adjusted Operating Income Ratio | 38.5 | % | 12.2 | % | 24.3 | % | 13.3 | % | |||||||||||||||
| Persistency: | |||||||||||||||||||||||
| Long-term Care | 93.3 | % | 95.6 | % | 94.8 | % | 95.7 | % | |||||||||||||||
| Individual Disability | 87.7 | % | 88.9 | % | 88.0 | % | 88.1 | % | |||||||||||||||
1The interest-adjusted loss ratio for the rolling twelve months ended March 31, 2021 excluding the fourth quarter of 2020 reserve increase, and March 31, 2020 was 68.1 percent and 86.2 percent, respectively.
2The interest-adjusted loss ratio for the quarter ended March 31, 2021 and year ended December 31, 2020 excludes the reserve recognition of $133.1 million and $1,284.5 million, respectively, related to the first and second phase of the reinsurance transaction.
3The other expense ratio for the quarter ended March 31, 2021 and year ended December 31, 2020 excludes the amortization of the cost of reinsurance of $20.0 million and $2.6 million, respectively, and transaction costs of $6.2 million and $21.0 million, respectively, related to the first and second phase of the reinsurance transaction.
12
Unum Group Financial Results for Corporate Segment
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 3/31/2021 | 3/31/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||||||||||
| Adjusted Operating Revenue | |||||||||||||||||||||||
| Net Investment Income | $ | 8.1 | $ | 5.1 | $ | 9.8 | $ | 20.5 | |||||||||||||||
| Other Income | 1.3 | — | 1.1 | 3.1 | |||||||||||||||||||
| Total | 9.4 | 5.1 | 10.9 | 23.6 | |||||||||||||||||||
| Interest, Debt, and Other Expenses | 48.3 | 51.0 | 247.7 | 239.5 | |||||||||||||||||||
| Loss Before Income Tax and Net Realized Investment Gains and Losses | (38.9) | (45.9) | (236.8) | (215.9) | |||||||||||||||||||
| Costs Related to Organizational Design Update | — | — | 23.3 | — | |||||||||||||||||||
| Impairment Loss on ROU Asset | — | — | 12.7 | — | |||||||||||||||||||
| Cost Related to Early Retirement of Debt | — | — | — | 27.3 | |||||||||||||||||||
| Adjusted Operating Loss | $ | (38.9) | $ | (45.9) | $ | (200.8) | $ | (188.6) | |||||||||||||||
13
Unum Group Reserves
| March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross | Total Reinsurance Ceded | ||||||||||||||||||||||||||||||||||||||||||||||
| Policy Reserves | Claim Reserves | Total Net | |||||||||||||||||||||||||||||||||||||||||||||
| % | Incurred | IBNR | % | Total | |||||||||||||||||||||||||||||||||||||||||||
| Group Disability | $ | — | — | % | $ | 5,609.9 | $ | 755.2 | 26.3 | % | $ | 6,365.1 | $ | 55.9 | $ | 6,309.2 | |||||||||||||||||||||||||||||||
| Group Life and Accidental Death & Dismemberment | 58.6 | 0.3 | 689.6 | 274.5 | 4.0 | 1,022.7 | 4.3 | 1,018.4 | |||||||||||||||||||||||||||||||||||||||
| Individual Disability | 470.9 | 2.2 | 1,416.9 | 146.7 | 6.5 | 2,034.5 | 212.6 | 1,821.9 | |||||||||||||||||||||||||||||||||||||||
| Voluntary Benefits | 1,716.3 | 8.1 | 50.4 | 56.3 | 0.4 | 1,823.0 | 24.9 | 1,798.1 | |||||||||||||||||||||||||||||||||||||||
| Dental and Vision | — | — | 0.3 | 12.6 | — | 12.9 | 0.1 | 12.8 | |||||||||||||||||||||||||||||||||||||||
| Unum US Segment | 2,245.8 | 10.6 | 7,767.1 | 1,245.3 | 37.2 | 11,258.2 | 297.8 | 10,960.4 | |||||||||||||||||||||||||||||||||||||||
| Unum International Segment | 202.4 | 1.0 | 2,083.7 | 159.7 | 9.3 | 2,445.8 | 94.0 | 2,351.8 | |||||||||||||||||||||||||||||||||||||||
| Colonial Life Segment | 2,378.0 | 11.2 | 328.4 | 121.0 | 1.8 | 2,827.4 | 3.5 | 2,823.9 | |||||||||||||||||||||||||||||||||||||||
| Individual Disability | 181.4 | 0.8 | 9,643.7 | 140.2 | 40.4 | 9,965.3 | 8,653.6 | 1,311.7 | |||||||||||||||||||||||||||||||||||||||
| Long-term Care | 10,516.5 | 49.6 | 2,195.1 | 261.3 | 10.1 | 12,972.9 | 44.8 | 12,928.1 | |||||||||||||||||||||||||||||||||||||||
| Other | 5,671.1 | 26.8 | 159.4 | 122.6 | 1.2 | 5,953.1 | 4,974.8 | 978.3 | |||||||||||||||||||||||||||||||||||||||
| Closed Block Segment | 16,369.0 | 77.2 | 11,998.2 | 524.1 | 51.7 | 28,891.3 | 13,673.2 | 15,218.1 | |||||||||||||||||||||||||||||||||||||||
| Subtotal | $ | 21,195.2 | 100.0 | % | $ | 22,177.4 | $ | 2,050.1 | 100.0 | % | 45,422.7 | 14,068.5 | 31,354.2 | ||||||||||||||||||||||||||||||||||
| Adjustment Related to Unrealized Investment Gains and Losses | 4,588.9 | 133.3 | 4,455.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 50,011.6 | $ | 14,201.8 | $ | 35,809.8 | |||||||||||||||||||||||||||||||||||||||||
The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are primarily due to movements in credit spreads and U.S. Treasury rates. The decline in total net reserves within the Closed Block Individual Disability product line compared to December 31, 2020 was driven by the second phase of the reinsurance transaction that closed on March 31, 2021 whereby we ceded $990.0 million of disabled life reserves that were on claim status as of January 1, 2021.
14
Unum Group Reserves
| December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross | Total Reinsurance Ceded | ||||||||||||||||||||||||||||||||||||||||||||||
| Policy Reserves | Claim Reserves | Total Net | |||||||||||||||||||||||||||||||||||||||||||||
| % | Incurred | IBNR | % | Total | |||||||||||||||||||||||||||||||||||||||||||
| Group Disability | $ | — | — | % | $ | 5,663.4 | $ | 720.4 | 26.5 | % | $ | 6,383.8 | $ | 58.3 | $ | 6,325.5 | |||||||||||||||||||||||||||||||
| Group Life and Accidental Death & Dismemberment | 58.8 | 0.3 | 715.4 | 261.3 | 4.0 | 1,035.5 | 3.0 | 1,032.5 | |||||||||||||||||||||||||||||||||||||||
| Individual Disability | 475.9 | 2.2 | 1,417.4 | 146.0 | 6.5 | 2,039.3 | 216.3 | 1,823.0 | |||||||||||||||||||||||||||||||||||||||
| Voluntary Benefits | 1,731.3 | 8.2 | 46.3 | 55.3 | 0.4 | 1,832.9 | 25.3 | 1,807.6 | |||||||||||||||||||||||||||||||||||||||
| Dental and Vision | — | — | 0.2 | 11.3 | — | 11.5 | 0.1 | 11.4 | |||||||||||||||||||||||||||||||||||||||
| Unum US Segment | 2,266.0 | 10.7 | 7,842.7 | 1,194.3 | 37.4 | 11,303.0 | 303.0 | 11,000.0 | |||||||||||||||||||||||||||||||||||||||
| Unum International Segment | 208.4 | 1.0 | 2,077.0 | 138.6 | 9.2 | 2,424.0 | 89.9 | 2,334.1 | |||||||||||||||||||||||||||||||||||||||
| Colonial Life Segment | 2,354.8 | 11.2 | 329.0 | 117.4 | 1.8 | 2,801.2 | 4.5 | 2,796.7 | |||||||||||||||||||||||||||||||||||||||
| Individual Disability | 196.3 | 0.9 | 9,641.9 | 144.2 | 40.5 | 9,982.4 | 7,810.1 | 2,172.3 | |||||||||||||||||||||||||||||||||||||||
| Long-term Care | 10,402.1 | 49.3 | 2,147.4 | 268.5 | 10.0 | 12,818.0 | 44.4 | 12,773.6 | |||||||||||||||||||||||||||||||||||||||
| Other | 5,675.0 | 26.9 | 166.1 | 113.1 | 1.1 | 5,954.2 | 4,966.3 | 987.9 | |||||||||||||||||||||||||||||||||||||||
| Closed Block Segment | 16,273.4 | 77.1 | 11,955.4 | 525.8 | 51.6 | 28,754.6 | 12,820.8 | 15,933.8 | |||||||||||||||||||||||||||||||||||||||
| Subtotal | $ | 21,102.6 | 100.0 | % | $ | 22,204.1 | $ | 1,976.1 | 100.0 | % | 45,282.8 | 13,218.2 | 32,064.6 | ||||||||||||||||||||||||||||||||||
| Adjustment Related to Unrealized Investment Gains and Losses | 6,225.6 | 200.2 | 6,025.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 51,508.4 | $ | 13,418.4 | $ | 38,090.0 | |||||||||||||||||||||||||||||||||||||||||
14. 1
Unum Group Investments
| 3/31/2021 | 3/31/2021 | 12/31/2020 | ||||||||||||||||||||||||||||||
| Fixed Maturity Securities (Fair Value) | Selected Statistics | |||||||||||||||||||||||||||||||
| Public | $ | 25,754.4 | 61.2 | % | Earned Book Yield | 4.91 | % | 4.75 | % | |||||||||||||||||||||||
| Mortgage-Backed/Asset-Backed Securities | 925.1 | 2.2 | Average Duration (in years) | 8.28 | 8.31 | |||||||||||||||||||||||||||
| Private Placements | 6,261.6 | 14.9 | ||||||||||||||||||||||||||||||
| High Yield | 3,229.7 | 7.7 | ||||||||||||||||||||||||||||||
| Government Securities | 1,697.2 | 4.0 | ||||||||||||||||||||||||||||||
| Municipal Securities | 4,203.9 | 10.0 | ||||||||||||||||||||||||||||||
| Redeemable Preferred Stocks | 4.1 | — | ||||||||||||||||||||||||||||||
| Total | $ | 42,076.0 | 100.0 | % | ||||||||||||||||||||||||||||
| Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
| Quality Ratings of Fixed Maturity Securities | Schedule BA and Non-Current | |||||||||||||||||||||||||||||||
| Aaa | 5.4 | % | 5.3 | % | Total Non-Current Investments | $ | 20.8 | $ | 20.8 | |||||||||||||||||||||||
| Aa | 10.7 | 10.9 | Total Schedule BA Assets | $ | 816.8 | $ | 776.8 | |||||||||||||||||||||||||
| A | 26.1 | 26.8 | ||||||||||||||||||||||||||||||
| Baa | 49.6 | 49.3 | ||||||||||||||||||||||||||||||
| Below Baa | 8.2 | 7.7 | ||||||||||||||||||||||||||||||
| Total | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||
15
Unum Group Investments at March 31, 2021
| Fixed Maturity Securities - By Industry Classification - Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||||||||||
| Classification | Fair Value | Net Unrealized Gain | Fair Value of Fixed Maturity Securities with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Fixed Maturity Securities with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||||||||||||||||
| Basic Industry | $ | 3,108.1 | $ | 343.7 | $ | 226.9 | $ | 7.2 | $ | 2,881.2 | $ | 350.9 | ||||||||||||||||||||||||||
| Capital Goods | 3,829.2 | 494.0 | 192.6 | 8.6 | 3,636.6 | 502.6 | ||||||||||||||||||||||||||||||||
| Communications | 2,625.5 | 425.8 | 153.1 | 8.3 | 2,472.4 | 434.1 | ||||||||||||||||||||||||||||||||
| Consumer Cyclical | 1,583.9 | 168.5 | 182.0 | 10.1 | 1,401.9 | 178.6 | ||||||||||||||||||||||||||||||||
| Consumer Non-Cyclical | 6,795.8 | 930.6 | 567.2 | 28.4 | 6,228.6 | 959.0 | ||||||||||||||||||||||||||||||||
| Energy | 3,549.5 | 497.0 | 186.8 | 11.2 | 3,362.7 | 508.2 | ||||||||||||||||||||||||||||||||
| Financial Institutions | 3,621.8 | 353.9 | 383.9 | 18.9 | 3,237.9 | 372.8 | ||||||||||||||||||||||||||||||||
| Mortgage/Asset-Backed | 925.1 | 73.5 | 3.7 | 0.1 | 921.4 | 73.6 | ||||||||||||||||||||||||||||||||
| Sovereigns | 1,120.6 | 221.6 | 61.8 | 2.7 | 1,058.8 | 224.3 | ||||||||||||||||||||||||||||||||
| Technology | 1,732.9 | 146.0 | 140.6 | 12.5 | 1,592.3 | 158.5 | ||||||||||||||||||||||||||||||||
| Transportation | 1,958.6 | 228.9 | 96.3 | 4.8 | 1,862.3 | 233.7 | ||||||||||||||||||||||||||||||||
| U.S. Government Agencies and Municipalities | 4,780.5 | 580.0 | 894.6 | 38.8 | 3,885.9 | 618.8 | ||||||||||||||||||||||||||||||||
| Public Utilities | 6,444.5 | 1,053.9 | 360.0 | 26.1 | 6,084.5 | 1,080.0 | ||||||||||||||||||||||||||||||||
| Total | $ | 42,076.0 | $ | 5,517.4 | $ | 3,449.5 | $ | 177.7 | $ | 38,626.5 | $ | 5,695.1 | ||||||||||||||||||||||||||
| Gross Unrealized Loss on Fixed Maturity Securities by Length of Time in Unrealized Loss Position | ||||||||||||||||||||||||||||||||||||||
| Investment-Grade | Below-Investment-Grade | |||||||||||||||||||||||||||||||||||||
| Category | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||||||||||||||||
| Less than 91 days | $ | 2,790.9 | $ | 122.1 | $ | 100.3 | $ | 3.9 | ||||||||||||||||||||||||||||||
| 91 through 180 days | 80.7 | 6.1 | 76.8 | 3.8 | ||||||||||||||||||||||||||||||||||
| 181 through 270 days | 83.1 | 10.4 | — | — | ||||||||||||||||||||||||||||||||||
| 271 days to 1 year | 29.4 | 2.1 | — | — | ||||||||||||||||||||||||||||||||||
| Greater than 1 year | 134.6 | 9.2 | 153.7 | 20.1 | ||||||||||||||||||||||||||||||||||
| Total | $ | 3,118.7 | $ | 149.9 | $ | 330.8 | $ | 27.8 | ||||||||||||||||||||||||||||||
15.1
Appendix to Statistical Supplement
2021 Significant Items
•In December 2020, we completed the first phase of a reinsurance transaction, pursuant to which Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company, and Unum Life Insurance Company of America, wholly-owned domestic insurance subsidiaries of Unum Group, and collectively referred to as "the ceding companies", each entered into separate reinsurance agreements with Commonwealth Annuity and Life Insurance Company (Commonwealth), to reinsure on a coinsurance basis effective as of July 1, 2020, approximately 75 percent of the Closed Block individual disability business, primarily direct business written by the ceding companies. On March 31, 2021, we completed the second phase of the reinsurance transaction, pursuant to which the ceding companies and Commonwealth amended and restated their respective reinsurance agreements to reinsure on a coinsurance and modified coinsurance basis effective as of January 1, 2021, a substantial portion of the remaining Closed Block individual disability business that was not ceded in December 2020, primarily business previously assumed by the ceding companies.
In December 2020, Provident Life and Casualty Insurance Company (PLC), also a wholly-owned domestic insurance subsidiary of Unum Group, entered into an agreement with Commonwealth whereby PLC will provide a 12-year volatility cover to Commonwealth for the active life cohort (ALR cohort). On March 31, 2021, PLC and Commonwealth amended and restated this agreement to incorporate the ALR cohort related to the additional business that was reinsured between the ceding companies and Commonwealth as part of the second phase of the transaction. As part of the amended and restated volatility cover, PLC received a payment from Commonwealth of approximately $18 million.
In connection with the second phase of the reinsurance transaction, Commonwealth paid a total ceding commission to the ceding companies of $18.2 million. The ceding companies transferred assets of $767.0 million, which consisted primarily of cash and fixed maturity securities. In addition, we recognized the following in the first quarter of 2021 related to the second phase:
•Net realized investment gains totaling $67.6 million, or $53.4 million after tax, related to the transfer of investments.
•Increase in benefits and change in reserves for future benefits of $133.1 million, or $105.1 million after tax, resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income.
•Transaction costs totaling $6.2 million, or $5.0 million after tax.
•Reinsurance recoverable of $990.0 million related to the policies on claim status (DLR cohort).
•Payable of $307.2 million related to the portfolio of invested assets associated with the business ceded on a modified coinsurance basis.
•Cost of reinsurance, or prepaid reinsurance premium, of $43.1 million related to the DLR cohort. The total cost of reinsurance recognized on a combined basis for the first and second phases was $854.8 million for which we amortized $20.0 million, or $15.8 million after tax, during the first three months of 2021.
•Deposit asset of $5.0 million related to the ALR cohort. The total deposit asset recognized on a combined basis for the first and second phases was $91.8 million.
2020 Significant Items
•In connection with the first phase of the previously-mentioned reinsurance transaction, the ceding companies paid a total cash ceding commission to Commonwealth of approximately $438 million and transferred additional assets consisting primarily of fixed maturity securities and cash totaling $6,669.8 million. PLC received a payment of $62 million from Commonwealth related to the 12-year volatility cover for the business reinsured during the first phase of the transaction. In addition, we recognized the following in the fourth quarter of 2020 related to the first phase:
◦Net realized investment gain of $1,302.3 million before tax, or $1,028.8 million after tax, related to the transfer of investments.
◦Increase in benefits and change in reserves for future benefits of $1,284.5 million, or $1,014.7 million after tax, resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income.
16
Appendix to Statistical Supplement - Continued
◦Transaction costs totaling $21.0 million, or $16.6 million after tax.
◦Net tax benefit of $36.5 million.
◦Reinsurance recoverable of $6,141.5 million representing the ceded reserves related to the DLR cohort.
◦Cost of reinsurance, or prepaid reinsurance premium, of $815.7 million related to the DLR cohort, of which we recognized amortization expense of $2.6 million, or $2.0 million after tax.
◦Deposit asset of $88.2 million related to the ALR cohort.
•Fourth quarter of 2020 reserve increases of $151.5 million and $17.5 million before tax, or $119.7 million and $13.8 million after tax, related to long-term care and group pension, respectively.
•In December 2020, Northwind Holdings redeemed the remaining $35.0 million of principal on the Northwind notes, and was released of any contractual collateral requirements.
•Third quarter of 2020 costs related to organizational design update of $23.3 million before tax and $18.6 million after tax.
•Second quarter of 2020 impairment loss of $12.7 million, or $10.0 million after tax, on a right of use (ROU) asset related to an operating lease for office space that we do not plan to continue using to support our general operations.
•In June 2016, the Financial Accounting Standards Board (FASB) issued an update that amended the guidance on the impairment of financial instruments. This update added an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses, and will generally result in earlier recognition of allowances for losses. This new model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. This update also prospectively modified the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. We adopted this update effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment as of January 1, 2020 which resulted in a decrease to retained earnings of $18.9 million, a decrease to mortgage loans of $8.3 million, a decrease in reinsurance recoverable of $1.8 million, a decrease in accounts and premiums receivable of $13.5 million, a decrease in deferred income tax liability of $5.0 million, and an increase to other liabilities of $0.3 million.
2019 Significant Items
•2019 cost related to the early retirement of debt of $27.3 million before tax and $21.6 million after tax.
•In February 2016, the FASB issued an update that changed the accounting and disclosure requirements for leases. These changes include the requirement for lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments and a corresponding asset, adjusted for certain items, is also recorded. The expense recognition for lessees remained similar to previous accounting requirements for capital and operating leases. We adopted this update effective January 1, 2019 using a modified retrospective approach through a cumulative-effect adjustment as of January 1, 2019 which resulted in a decrease to retained earnings of $3.4 million, an increase to other assets of $117.7 million, a decrease in deferred income tax of $0.4 million, an increase to other liabilities of $122.0 million, and a decrease to income tax payable of $1.3 million.
16.1
Appendix to Statistical Supplement - Continued
Non-GAAP Financial Measures
We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial measures are better performance measures and better indicators of the revenue and profitability and underlying trends in our business:
•Consolidated adjusted operating revenue, which excludes realized investment gains or losses;
•After-tax adjusted operating income or loss, which excludes realized investment gains or losses and amortization of the cost of reinsurance as well as certain other items, as applicable;
•Adjusted operating return on equity, which is calculated using after-tax adjusted operating income or loss and excludes from equity the unrealized gain or loss on securities and net gain on hedges;
•Leverage ratio, which excludes the unrealized gain or loss on securities and net gain on hedges, and the non-recourse debt and associated capital of Northwind Holdings, LLC prior to pay off in December 2020; and
•Book value per common share, which is calculated excluding AOCI.
Realized investment gains or losses and unrealized gains or losses on securities and net gains on hedges depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. Leverage ratio and book value per common share excluding certain components of AOCI, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures.
As previously discussed, we have 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, respectively. As a result, we exclude the amortization of the cost of reinsurance that was recognized upon the exit of the business related to the DLR cohort of policies. We believe that the exclusion of the amortization of the cost of reinsurance 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.
Information reconciling the Company’s outlook on after-tax adjusted operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax adjusted operating income are those described in this Appendix to Statistical Supplement. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio. For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 16.3, other than book value per common share, which is presented on page 2.
16.2
Reconciliation of Non-GAAP Financial Measures
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31 | December 31 | September 30 | June 30 | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | 3,072.0 | $ | 4,273.5 | $ | 2,996.3 | $ | 3,021.2 | $ | 2,871.1 | $ | 3,034.6 | $ | 2,960.0 | $ | 3,016.7 | $ | 2,987.6 | ||||||||||||||||||||||||||||||||||||||
| Excluding: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) | 84.6 | 1,304.9 | 4.4 | 33.8 | (144.0) | 9.2 | (26.2) | (7.3) | 1.1 | |||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Revenue | $ | 2,987.4 | $ | 2,968.6 | $ | 2,991.9 | $ | 2,987.4 | $ | 3,015.1 | $ | 3,025.4 | $ | 2,986.2 | $ | 3,024.0 | $ | 2,986.5 | ||||||||||||||||||||||||||||||||||||||
16.3
Reconciliation of Non-GAAP Financial Measures - Continued
| After-Tax Adjusted Operating Income (Loss) | Average Allocated Equity1 | Annualized Adjusted Operating Return on Equity | ||||||||||||||||||
| Three Months Ended March 31, 2021 | ||||||||||||||||||||
| Unum US | $ | 91.6 | $ | 4,395.3 | 8.3 | % | ||||||||||||||
| Unum International | 21.2 | 822.4 | 10.3 | % | ||||||||||||||||
| Colonial Life | 57.8 | 1,597.8 | 14.5 | % | ||||||||||||||||
| Core Operating Segments | 170.6 | 6,815.5 | 10.0 | % | ||||||||||||||||
| Closed Block | 75.9 | 4,107.6 | ||||||||||||||||||
| Corporate | (34.5) | (1,162.7) | ||||||||||||||||||
| Total | $ | 212.0 | $ | 9,760.4 | 8.7 | % | ||||||||||||||
| Three Months Ended March 31, 2020 | ||||||||||||||||||||
| Unum US | $ | 206.9 | $ | 4,503.1 | 18.4 | % | ||||||||||||||
| Unum International | 15.8 | 749.6 | 8.5 | % | ||||||||||||||||
| Colonial Life | 63.9 | 1,549.2 | 16.5 | % | ||||||||||||||||
| Core Operating Segments | 286.6 | 6,801.9 | 16.9 | % | ||||||||||||||||
| Closed Block | 21.3 | 4,084.0 | ||||||||||||||||||
| Corporate | (33.8) | (1,716.1) | ||||||||||||||||||
| Total | $ | 274.1 | $ | 9,169.8 | 12.0 | % | ||||||||||||||
1 Excludes unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.6. Due to the implementation of a FASB update for which the beginning balance of 2020 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2020 using internally allocated equity that reflects the adjusted beginning balance at January 1, 2020. As a result, average equity for the three months ended March 31, 2020 for certain of our segments will not compute using the historical allocated equity at December 31, 2019.
16.4
Reconciliation of Non-GAAP Financial Measures - Continued
| After-Tax Adjusted Operating Income (Loss) | Average Allocated Equity2 | Adjusted Operating Return on Equity | ||||||||||||||||||
| Year Ended December 31, 2020 | ||||||||||||||||||||
| Unum US | $ | 651.4 | $ | 4,458.2 | 14.6 | % | ||||||||||||||
| Unum International | 51.9 | 797.7 | 6.5 | % | ||||||||||||||||
| Colonial Life | 264.5 | 1,584.1 | 16.7 | % | ||||||||||||||||
| Core Operating Segments | 967.8 | 6,840.0 | 14.1 | % | ||||||||||||||||
| Closed Block | 183.8 | 3,979.2 | ||||||||||||||||||
| Corporate | (146.2) | (1,395.2) | ||||||||||||||||||
| Total | $ | 1,005.4 | $ | 9,424.0 | 10.7 | % | ||||||||||||||
| Year Ended December 31, 2019 | ||||||||||||||||||||
| Unum US | $ | 816.3 | $ | 4,526.6 | 18.0 | % | ||||||||||||||
| Unum International | 88.4 | 757.9 | 11.7 | % | ||||||||||||||||
| Colonial Life | 272.7 | 1,558.6 | 17.5 | % | ||||||||||||||||
| Core Operating Segments | 1,177.4 | 6,843.1 | 17.2 | % | ||||||||||||||||
| Closed Block | 104.4 | 3,842.2 | ||||||||||||||||||
| Corporate | (141.2) | (1,764.5) | ||||||||||||||||||
| Total | $ | 1,140.6 | $ | 8,920.8 | 12.8 | % | ||||||||||||||
2 Excludes unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.6. Due to the implementation of a FASB update for which the beginning balances of 2020 and 2019 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2020 and 2019 using internally allocated equity that reflects the adjusted beginning balances at January 1, 2020 and 2019, respectively. As a result, average equity for the years ended December 31, 2020 and 2019 for certain of our segments will not compute using the historical allocated equity at December 31, 2019 and 2018, respectively.
16.5
Reconciliation of Non-GAAP Financial Measures - Continued
Average allocated equity is computed as follows:
| 3/31/2021 | 12/31/2020 | 3/31/2020 | 12/31/2019 | 12/31/2018 | ||||||||||||||||||||||||||||
| Total Stockholders' Equity | $ | 10,570.1 | $ | 10,871.0 | $ | 9,803.1 | $ | 9,965.0 | $ | 8,621.8 | ||||||||||||||||||||||
| Excluding: | ||||||||||||||||||||||||||||||||
| Net Unrealized Gain (Loss) on Securities | 678.2 | 1,067.7 | 395.3 | 615.9 | (312.4) | |||||||||||||||||||||||||||
| Net Gain on Hedges | 77.1 | 97.8 | 210.6 | 187.8 | 250.6 | |||||||||||||||||||||||||||
| Total Adjusted Stockholders' Equity | $ | 9,814.8 | $ | 9,705.5 | $ | 9,197.2 | $ | 9,161.3 | $ | 8,683.6 | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
| 3/31/2021 | 12/31/2020 | 3/31/2020 | 12/31/2019 | |||||||||||||||||||||||||||||
| Average Adjusted Stockholders' Equity | $ | 9,760.4 | $ | 9,424.0 | $ | 9,169.8 | $ | 8,920.8 | ||||||||||||||||||||||||
16.6
Reconciliation of Non-GAAP Financial Measures - Continued
| Three Months Ended March 31 | ||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||
| (in millions) | per share* | (in millions) | per share* | |||||||||||||||||||||||
| Net Income | $ | 153.0 | $ | 0.75 | $ | 161.0 | $ | 0.79 | ||||||||||||||||||
| Excluding: | ||||||||||||||||||||||||||
| Net Realized Investment Gains and Losses | ||||||||||||||||||||||||||
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $14.2; $—) | 53.4 | 0.26 | — | — | ||||||||||||||||||||||
Net Realized Investment Gain (Loss), Other (net of tax expense (benefit) of $3.5; $(30.9)) | 13.5 | 0.06 | (113.1) | (0.56) | ||||||||||||||||||||||
| Total Net Realized Investment Gain (Loss) | 66.9 | 0.32 | (113.1) | (0.56) | ||||||||||||||||||||||
| Items Related to Closed Block Individual Disability Reinsurance Transaction | ||||||||||||||||||||||||||
Change in Benefit Reserves and Transaction Costs (net of tax benefit of $29.2; $—) | (110.1) | (0.53) | — | — | ||||||||||||||||||||||
Amortization of the Cost of Reinsurance (net of tax benefit of $4.2; $—) | (15.8) | (0.08) | — | — | ||||||||||||||||||||||
| Total Items Related to Closed Block Individual Disability Reinsurance Transaction | (125.9) | (0.61) | — | — | ||||||||||||||||||||||
| After-tax Adjusted Operating Income | $ | 212.0 | $ | 1.04 | $ | 274.1 | $ | 1.35 | ||||||||||||||||||
| *Assuming Dilution. | ||||||||||||||||||||||||||
16.7
Reconciliation of Non-GAAP Financial Measures - Continued
| Year Ended December 31 | ||||||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||||||
| (in millions) | per share * | (in millions) | per share * | |||||||||||||||||||||||
| Net Income | $ | 793.0 | $ | 3.89 | $ | 1,100.3 | $ | 5.24 | ||||||||||||||||||
| Excluding: | ||||||||||||||||||||||||||
| Net Realized Investment Gains and Losses | ||||||||||||||||||||||||||
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $273.5; $—) | 1,028.8 | 5.05 | — | — | ||||||||||||||||||||||
Net Realized Investment Loss, Other (net of tax benefit of $20.9; $4.5) | (82.3) | (0.40) | (18.7) | (0.09) | ||||||||||||||||||||||
| Total Net Realized Investment Gain (Loss) | 946.5 | 4.65 | (18.7) | (0.09) | ||||||||||||||||||||||
| Items Related to Closed Block Individual Disability Reinsurance Transaction | ||||||||||||||||||||||||||
Change in Benefit Reserves and Transaction Costs (net of tax benefit of $274.2; $—) | (1,031.3) | (5.06) | — | — | ||||||||||||||||||||||
Amortization of the Cost of Reinsurance (net of tax benefit of $0.6; $—) | (2.0) | (0.01) | — | — | ||||||||||||||||||||||
| Net Tax Benefits of Reinsurance Transaction | 36.5 | 0.18 | — | — | ||||||||||||||||||||||
| Total Items Related to Closed Block Individual Disability Reinsurance Transaction | (996.8) | (4.89) | — | — | ||||||||||||||||||||||
Long-term Care Reserve Increase (net of tax benefit of $31.8; $—) | (119.7) | (0.59) | — | — | ||||||||||||||||||||||
Group Pension Reserve Increase (net of tax benefit of $3.7; $—) | (13.8) | (0.07) | — | — | ||||||||||||||||||||||
Costs Related to Organizational Design Update (net of tax benefit of $4.7; $—) | (18.6) | (0.09) | — | — | ||||||||||||||||||||||
Impairment Loss on ROU Asset (net of tax benefit of $2.7; $—) | (10.0) | (0.05) | — | — | ||||||||||||||||||||||
Costs Related to Early Retirement of Debt (net of tax benefit of $—; $5.7) | — | — | (21.6) | (0.11) | ||||||||||||||||||||||
| After-tax Adjusted Operating Income | $ | 1,005.4 | $ | 4.93 | $ | 1,140.6 | $ | 5.44 | ||||||||||||||||||
| *Assuming Dilution. | ||||||||||||||||||||||||||
16.8
Reconciliation of Non-GAAP Financial Measures - Continued
| March 31 | December 31 | |||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2019 | |||||||||||||||||||||||
| Debt | $ | 3,346.8 | $ | 3,314.1 | $ | 3,345.7 | $ | 3,326.6 | ||||||||||||||||||
| Including: | ||||||||||||||||||||||||||
| Lease Liability | 99.7 | 116.8 | 105.9 | 114.7 | ||||||||||||||||||||||
| Excluding: | ||||||||||||||||||||||||||
| Non-recourse Debt | — | 63.4 | — | 78.1 | ||||||||||||||||||||||
| Adjusted Debt and Lease Liability | $ | 3,446.5 | $ | 3,367.5 | $ | 3,451.6 | $ | 3,363.2 | ||||||||||||||||||
| Total Stockholders' Equity | $ | 10,570.1 | $ | 9,803.1 | $ | 10,871.0 | $ | 9,965.0 | ||||||||||||||||||
| Excluding: | ||||||||||||||||||||||||||
| Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges | 755.3 | 605.9 | 1,165.5 | 803.7 | ||||||||||||||||||||||
| Northwind Capital | — | 986.3 | — | 984.6 | ||||||||||||||||||||||
| Equity, As Adjusted | 9,814.8 | 8,210.9 | 9,705.5 | 8,176.7 | ||||||||||||||||||||||
| Debt, As Adjusted and Lease Liability | 3,446.5 | 3,367.5 | 3,451.6 | 3,363.2 | ||||||||||||||||||||||
| Total Adjusted Capital | $ | 13,261.3 | $ | 11,578.4 | $ | 13,157.1 | $ | 11,539.9 | ||||||||||||||||||
| Leverage Ratio | 26.0 | % | 29.1 | % | 26.2 | % | 29.1 | % | ||||||||||||||||||
16.9