Profile: Unum Group (UNM)
25 Jul 2016
Unum Group, incorporated on March 22, 1995, is a provider of disability insurance products in the United States and the United Kingdom. The Company also provides a portfolio of other insurance products, including employer and employee paid group benefits, life insurance and other related services. The Company's segments are Unum US, Unum UK, Colonial Life, Closed Block and Corporate.
The Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. The Unum UK segment includes insurance for group long-term disability, group life, and supplemental lines of business, which include dental, individual disability, and critical illness products. The Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products. The Closed Block segment consists of individual disability, group and individual long-term care, and other insurance products. The Corporate segment includes investment income on corporate assets not specifically allocated to a line of business, interest expense on corporate debt other than non-recourse debt, and certain other corporate income and expense not allocated to a line of business.
Unum US Segment
Unum US products are issued primarily by Unum America and Provident. The supplemental and voluntary lines of business consists of individual disability and voluntary benefits products. The Company sells group long-term and short-term disability products to employers for the benefit of employees. Group long-term disability provides employees with insurance coverage for loss of income in the event of extended work absences due to sickness and injury. The Company offers services to employers and insured to encourage and facilitate rehabilitation, retraining and re-employment. Group short-term disability insurance provides coverage from loss of income due to injury or sickness, immediately for accidents and after one week for sickness, for approximately 26 weeks, limited to specified maximums as a percentage of income. The Company also offers fee-based administrative services only (ASO) products, where the responsibility for funding claim payments remains with the customer, and fee-based family medical leave products. Group life and accidental death and dismemberment products are sold to employers as employee benefit products. Group life consists primarily of renewable term life insurance with the coverage's frequently linked to employees' wages and includes a provision for waiver of premium, if disabled. Accidental death and dismemberment consists primarily of an additional benefit amount payable if death or severe injury is attributable to an accident.
Individual disability is offered primarily to multi-life employer groups to supplement their group disability plans and funded by the employer, but the policy is owned by the employee and is portable. Individual disability insurance provides the insured with a portion of earned income lost as a result of sickness or injury. The Company provides options with respect to length of benefit periods, product features, and waiting periods before payments begin, which permits tailoring of the multi-life plan to a specific employer's needs. It also markets individual disability policies, which include payments for the transfer of business ownership between partners and payments for business overhead expenses, also on a multi-life basis. Voluntary benefits products are primarily sold to groups of employees through payroll deduction at the workplace and include life, disability, accident, hospital indemnity, cancer and critical illness offered on both a group and individual basis. Premium rates for voluntary benefits products are based on assumptions concerning morbidity, mortality, persistency, administrative expenses, investment income and profit.
Unum UK Segment
The Company's Unum UK segment products are issued primarily by Unum Limited and are sold in the United Kingdom through field sales personnel and independent brokers and consultants. Group long-term disability products are sold to employers for the benefit of employees. Group long-term disability provides employees with insurance coverage for loss of income in the event of extended work absences due to sickness or injury. Services are offered to employers and insureds to encourage and facilitate rehabilitation, retraining and re-employment. Group life products are sold to employers as employee benefit products.
Supplemental products are sold to individual retail customers, as well as groups of employees and include individual disability, group and individual critical illness, and group dental. Individual disability products provide the insured with a portion of earned income lost as a result of sickness or injury. Critical illness products provide a lump-sum benefit on the occurrence of a covered critical illness event. Group dental products generally provide fixed benefits based on specified treatments or a portion of the cost of the treatment.
The Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products issued primarily by Colonial Life & Accident Insurance Company and marketed to employees, on a group and an individual basis, at the workplace through an independent contractor agency sales force and brokers. The accident, sickness and disability product line consists of short-term disability plans, as well as accident-only plans providing benefits for injuries on a specified loss basis. It also includes accident and health plans covering hospital admissions, confinement and surgeries on an indemnity basis. Premiums for accident, sickness and disability products are generally based on assumptions for morbidity, mortality, persistency, administrative expenses, investment income and profit.
Life products consists of universal life, whole life and term life policies. Premium rates vary by age and are based on assumptions concerning mortality, persistency, administrative expenses, investment income and profit. Cancer policies provide various benefits for the treatment of cancer, including hospitalization, surgery, radiation and chemotherapy. Critical illness policies provide a lump-sum benefit and fixed payments on the occurrence of a covered critical illness event.
Closed Block Segment
The Company's Closed Block segment consists of individual disability, group and individual long-term care and other insurance products. Long-term care insurance pays a benefit upon the loss of two or more activities of daily living and the insured's requirement of standby assistance or cognitive impairment. Payment is generally made on an indemnity basis, regardless of expenses incurred, up to a lifetime maximum. Its long-term care insurance was sold on a guaranteed renewable basis, which allows to re-price in-force policies. The Company's other insurance products, which are not actively marketed include group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous product lines.
1 Fountain Sq
CHATTANOOGA TN 37402-1307