Delaware
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62-1598430
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(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
1 Fountain Square
Chattanooga, Tennessee
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37402
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(Address of principal executive offices) | (Zip Code) | ||||
(423)294-1011
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(Registrant's telephone number, including area code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common stock, $0.10 par value
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UNM
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New York Stock Exchange
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6.250% Junior Subordinated Notes due 2058
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UNMA
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New York Stock Exchange
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Large Accelerated Filer
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x | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ | |||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||
Page | |||||||||||
Unum US | 64.2 | % | |||
Unum International | 7.0 | ||||
Colonial Life | 18.2 | ||||
Closed Block | 10.6 | ||||
Total | 100.0 | % |
Group Disability | 43.7 | % | |||
Group Life and Accidental Death & Dismemberment | 30.0 | ||||
Individual Disability | 7.6 | ||||
Voluntary Benefits | 14.5 | ||||
Dental and Vision | 4.2 | ||||
Total | 100.0 | % |
Unum UK | |||||
Group Long-term Disability | 55.9 | % | |||
Group Life | 16.6 | ||||
Supplemental | 15.3 | ||||
Unum Poland | 12.2 | ||||
Total | 100.0 | % |
Accident, Sickness, and Disability | 58.1 | % | |||
Life | 21.4 | ||||
Cancer and Critical Illness | 20.5 | ||||
Total | 100.0 | % |
Layer |
Coverage (in millions)
|
Percent Coverage | ||||||||||||
First | $ | 50.0 | 50.0 | % | ||||||||||
Second | 55.0 | 55.0 | ||||||||||||
Third | 90.0 | 60.0 | ||||||||||||
Fourth | 180.0 | 60.0 | ||||||||||||
Total Catastrophic Coverage | $ | 375.0 |
Name | Age | Position | ||||||
Richard P. McKenney | 52 | President and Chief Executive Officer and a Director | ||||||
Steven A. Zabel | 52 | Executive Vice President, Chief Financial Officer | ||||||
Michael Q. Simonds | 47 | Executive Vice President, Chief Operating Officer | ||||||
Elizabeth A. Ahmed | 46 | Executive Vice President, People and Communications | ||||||
Timothy G. Arnold | 58 | Executive Vice President, Voluntary Benefits and President, Colonial Life | ||||||
Puneet Bhasin | 58 | Executive Vice President, Chief Information and Digital Officer | ||||||
Lisa G. Iglesias | 55 | Executive Vice President, General Counsel | ||||||
Martha D. Leiper | 58 | Executive Vice President, Chief Investment Officer | ||||||
Peter G. O'Donnell | 54 | Executive Vice President, Unum International | ||||||
Christopher W. Pyne | 51 | Executive Vice President, Group Benefits | ||||||
Mark P. Till | 53 | Executive Vice President and CEO Designate, Unum International | ||||||
2020 | |||||
4th Quarter | $ | 0.285 | |||
3rd Quarter | 0.285 | ||||
2nd Quarter | 0.285 | ||||
1st Quarter | 0.285 | ||||
2019 | |||||
4th Quarter | $ | 0.285 | |||
3rd Quarter | 0.285 | ||||
2nd Quarter | 0.260 | ||||
1st Quarter | 0.260 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Total Revenue | $ | 13,162.1 | $ | 11,998.9 | $ | 11,598.5 | |||||||||||
Excluding: | |||||||||||||||||
Net Realized Investment Gain (Loss) | 1,199.1 | (23.2) | (39.5) | ||||||||||||||
Adjusted Operating Revenue | $ | 11,963.0 | $ | 12,022.1 | $ | 11,638.0 | |||||||||||
Income Before Income Tax | $ | 964.0 | $ | 1,382.1 | $ | 627.8 | |||||||||||
Excluding: | |||||||||||||||||
Net Realized Investment Gains and Losses | |||||||||||||||||
Net Realized Investment Gain Related to Reinsurance Transaction | 1,302.3 | — | — | ||||||||||||||
Net Realized Investment Loss, Other | (103.2) | (23.2) | (39.5) | ||||||||||||||
Total Net Realized Investment Gain (Loss) | 1,199.1 | (23.2) | (39.5) | ||||||||||||||
Items Related to Closed Block Individual Disability Reinsurance Transaction | |||||||||||||||||
Change in Benefit Reserves and Transaction Costs | (1,305.5) | — | — | ||||||||||||||
Amortization of the Cost of Reinsurance | (2.6) | — | — | ||||||||||||||
Total Items Related to Closed Block Individual Disability Reinsurance Transaction | (1,308.1) | — | — | ||||||||||||||
Long-term Care Reserve Increase | (151.5) | — | (750.8) | ||||||||||||||
Group Pension Reserve Increase | (17.5) | — | — | ||||||||||||||
Costs Related to Organizational Design Update | (23.3) | — | — | ||||||||||||||
Impairment Loss on ROU Asset | (12.7) | — | — | ||||||||||||||
Costs Related to Early Retirement of Debt | — | (27.3) | — | ||||||||||||||
Adjusted Operating Income | $ | 1,278.0 | $ | 1,432.6 | $ | 1,418.1 |
(in millions of dollars) | 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 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | Total Reinsurance Ceded | ||||||||||||||||||||||||||||||||||||||||||||||
Policy Reserves | Claim Reserves | Total Net | |||||||||||||||||||||||||||||||||||||||||||||
% | Incurred | IBNR | % | Total | |||||||||||||||||||||||||||||||||||||||||||
Group Disability | $ | — | — | % | $ | 5,814.5 | $ | 683.8 | 28.2 | % | $ | 6,498.3 | $ | 58.3 | $ | 6,440.0 | |||||||||||||||||||||||||||||||
Group Life and Accidental Death & Dismemberment | 59.9 | 0.3 | 721.1 | 234.2 | 4.1 | 1,015.2 | 6.2 | 1,009.0 | |||||||||||||||||||||||||||||||||||||||
Individual Disability | 499.0 | 2.4 | 1,391.1 | 140.3 | 6.6 | 2,030.4 | 217.2 | 1,813.2 | |||||||||||||||||||||||||||||||||||||||
Voluntary Benefits | 1,700.1 | 8.2 | 45.8 | 51.4 | 0.4 | 1,797.3 | 26.1 | 1,771.2 | |||||||||||||||||||||||||||||||||||||||
Dental and Vision | — | — | — | 15.4 | 0.1 | 15.4 | 0.2 | 15.2 | |||||||||||||||||||||||||||||||||||||||
Unum US Segment | 2,259.0 | 10.9 | 7,972.5 | 1,125.1 | 39.4 | 11,356.6 | 308.0 | 11,048.6 | |||||||||||||||||||||||||||||||||||||||
Unum International Segment | 186.5 | 0.9 | 1,986.4 | 110.0 | 9.1 | 2,282.9 | 87.6 | 2,195.3 | |||||||||||||||||||||||||||||||||||||||
Colonial Life Segment | 2,229.0 | 10.8 | 297.4 | 113.2 | 1.8 | 2,639.6 | 6.2 | 2,633.4 | |||||||||||||||||||||||||||||||||||||||
Individual Disability | 258.8 | 1.3 | 8,724.1 | 172.7 | 38.5 | 9,155.6 | 1,669.4 | 7,486.2 | |||||||||||||||||||||||||||||||||||||||
Long-term Care | 9,864.6 | 47.8 | 2,045.2 | 232.0 | 9.9 | 12,141.8 | 44.7 | 12,097.1 | |||||||||||||||||||||||||||||||||||||||
Other | 5,847.9 | 28.3 | 177.6 | 120.5 | 1.3 | 6,146.0 | 5,133.1 | 1,012.9 | |||||||||||||||||||||||||||||||||||||||
Closed Block Segment | 15,971.3 | 77.4 | 10,946.9 | 525.2 | 49.7 | 27,443.4 | 6,847.2 | 20,596.2 | |||||||||||||||||||||||||||||||||||||||
Subtotal | $ | 20,645.8 | 100.0 | % | $ | 21,203.2 | $ | 1,873.5 | 100.0 | % | 43,722.5 | 7,249.0 | 36,473.5 | ||||||||||||||||||||||||||||||||||
Adjustment Related to Unrealized Investment Gains and Losses | 5,803.1 | 424.7 | 5,378.4 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 49,525.6 | $ | 7,673.7 | $ | 41,851.9 |
Balance Remaining as a % | DAC Balances | ||||||||||||||||||||||||||||||||||
Amortization | of Year-end DAC Balance | at December 31 | |||||||||||||||||||||||||||||||||
Period | Year 3 | Year 10 | Year 15 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Unum US | |||||||||||||||||||||||||||||||||||
Group Disability | 4-6 | 25% | 0% | 0% | $ | 95.3 | $ | 99.1 | |||||||||||||||||||||||||||
Group Life and Accidental Death & Dismemberment | 4-6 | 26% | 0% | 0% | 76.4 | 79.7 | |||||||||||||||||||||||||||||
Supplemental and Voluntary: | |||||||||||||||||||||||||||||||||||
Individual Disability | 20 | 73% | 26% | 6% | 423.6 | 426.1 | |||||||||||||||||||||||||||||
Voluntary Benefits | 10-29 | 59% | 16% | 5% | 557.4 | 604.7 | |||||||||||||||||||||||||||||
Dental and Vision | 4 | 26% | 0% | 0% | 16.0 | 13.4 | |||||||||||||||||||||||||||||
Unum International | |||||||||||||||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | 3 | 0% | 0% | 0% | 2.8 | 2.7 | |||||||||||||||||||||||||||||
Group Life | 3 | 0% | 0% | 0% | 1.2 | 1.4 | |||||||||||||||||||||||||||||
Supplemental | 20 | 55% | 11% | 2% | 14.5 | 15.3 | |||||||||||||||||||||||||||||
Unum Poland | 30 | 75% | 50% | 37% | 13.5 | 7.0 | |||||||||||||||||||||||||||||
Colonial Life | |||||||||||||||||||||||||||||||||||
Accident, Sickness, and Disability | 15 | 64% | 10% | 0% | 563.2 | 553.4 | |||||||||||||||||||||||||||||
Life | 25 | 73% | 24% | 7% | 278.7 | 283.6 | |||||||||||||||||||||||||||||
Cancer and Critical Illness | 19 | 79% | 25% | 5% | 230.0 | 237.6 | |||||||||||||||||||||||||||||
Totals | $ | 2,272.6 | $ | 2,324.0 |
Pension Benefits | ||||||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | ||||||||||||||||||||||||||||||||||||
Assumption | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Discount Rate | 2.90 | % | 3.60 | % | 1.40 | % | 2.00 | % | 2.60 | % | 3.40 | % | ||||||||||||||||||||||||||
Expected Long-term Rate of Return on Plan Assets | 6.00 | % | 7.00 | % | 3.50 | % | 4.10 | % | 5.75 | % | 5.75 | % |
($ in millions) |
At or for the Year Ended December 31, 2020
|
|||||||||||||||||||||||||
Assumption | Change | Net Periodic Benefit Cost, Before Tax | Benefit Obligation | Stockholders' Equity, After Tax | ||||||||||||||||||||||
Discount Rate | + 50 bp | $ | (2.3) | $ | (201.8) | $ | 160.1 | |||||||||||||||||||
Discount Rate | - 50 bp | 0.4 | 226.4 | (179.5) | ||||||||||||||||||||||
Expected Long-term Rate of Return on Plan Assets | + 50 bp | (8.8) | N/A | N/A | ||||||||||||||||||||||
Expected Long-term Rate of Return on Plan Assets | - 50 bp | 8.8 | N/A | N/A |
(in millions of dollars) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
Premium Income | $ | 9,378.1 | 0.1 | % | $ | 9,365.6 | 4.2 | % | $ | 8,986.1 | |||||||||||||||||||
Net Investment Income | 2,360.7 | (3.1) | 2,435.3 | (0.7) | 2,453.7 | ||||||||||||||||||||||||
Net Realized Investment Gain (Loss) | 1,199.1 | N.M. | (23.2) | (41.3) | (39.5) | ||||||||||||||||||||||||
Other Income | 224.2 | 1.4 | 221.2 | 11.6 | 198.2 | ||||||||||||||||||||||||
Total Revenue | 13,162.1 | 9.7 | 11,998.9 | 3.5 | 11,598.5 | ||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 8,972.9 | 19.7 | 7,496.2 | (6.5) | 8,020.4 | ||||||||||||||||||||||||
Commissions | 1,057.3 | (5.8) | 1,122.7 | 1.3 | 1,108.4 | ||||||||||||||||||||||||
Interest and Debt Expense | 188.2 | 6.1 | 177.4 | 6.0 | 167.3 | ||||||||||||||||||||||||
Cost Related to Early Retirement of Debt | — | (100.0) | 27.3 | N.M. | — | ||||||||||||||||||||||||
Deferral of Acquisition Costs | (576.2) | (12.5) | (658.6) | (1.4) | (668.0) | ||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 606.1 | (0.6) | 609.9 | 7.9 | 565.5 | ||||||||||||||||||||||||
Compensation Expense | 953.2 | 6.1 | 898.3 | 1.4 | 885.9 | ||||||||||||||||||||||||
Other Expenses | 996.6 | 5.6 | 943.6 | 5.9 | 891.2 | ||||||||||||||||||||||||
Total Benefits and Expenses | 12,198.1 | 14.9 | 10,616.8 | (3.2) | 10,970.7 | ||||||||||||||||||||||||
Income Before Income Tax | 964.0 | (30.3) | 1,382.1 | 120.1 | 627.8 | ||||||||||||||||||||||||
Income Tax | 171.0 | (39.3) | 281.8 | 169.9 | 104.4 | ||||||||||||||||||||||||
Net Income | $ | 793.0 | (27.9) | $ | 1,100.3 | 110.2 | $ | 523.4 | |||||||||||||||||||||
N.M. = not a meaningful percentage |
(in millions) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Unum US | $ | 999.6 | (10.0) | % | $ | 1,110.1 | (0.4) | % | $ | 1,114.6 | |||||||||||||||||||
Unum International | $ | 90.5 | (9.5) | % | $ | 100.0 | 14.9 | % | $ | 87.0 | |||||||||||||||||||
Colonial Life | $ | 413.1 | (27.0) | % | $ | 566.0 | 0.8 | % | $ | 561.3 |
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||
Premium Income | $ | 6,018.9 | — | % | $ | 6,016.6 | 4.9 | % | $ | 5,736.4 | |||||||||||||||||||
Net Investment Income | 720.3 | (2.6) | 739.4 | (5.0) | 778.7 | ||||||||||||||||||||||||
Other Income | 154.9 | 8.5 | 142.8 | 20.5 | 118.5 | ||||||||||||||||||||||||
Total | 6,894.1 | (0.1) | 6,898.8 | 4.0 | 6,633.6 | ||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 4,138.7 | 2.9 | 4,022.1 | 4.3 | 3,856.5 | ||||||||||||||||||||||||
Commissions | 594.9 | (5.3) | 628.5 | 1.3 | 620.6 | ||||||||||||||||||||||||
Deferral of Acquisition Costs | (291.5) | (12.9) | (334.5) | (2.8) | (344.0) | ||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 341.0 | (0.9) | 344.0 | 9.2 | 315.1 | ||||||||||||||||||||||||
Other Expenses | 1,285.6 | 6.5 | 1,207.6 | 3.1 | 1,170.8 | ||||||||||||||||||||||||
Total | 6,068.7 | 3.4 | 5,867.7 | 4.4 | 5,619.0 | ||||||||||||||||||||||||
Adjusted Operating Income | $ | 825.4 | (19.9) | $ | 1,031.1 | 1.6 | $ | 1,014.6 | |||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||
Benefit Ratio | 68.8 | % | 66.9 | % | 67.2 | % | |||||||||||||||||||||||
Other Expense Ratio | 21.4 | % | 20.1 | % | 20.4 | % | |||||||||||||||||||||||
Adjusted Operating Income Ratio | 13.7 | % | 17.1 | % | 17.7 | % | |||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Sales by Product | |||||||||||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||
Group Long-term Disability | $ | 239.7 | (0.7) | % | $ | 241.5 | (0.9) | % | $ | 243.8 | |||||||||||||||||||
Group Short-term Disability | 158.7 | (0.3) | 159.2 | 14.8 | 138.7 | ||||||||||||||||||||||||
Group Life and AD&D | 224.3 | (13.2) | 258.3 | (8.5) | 282.4 | ||||||||||||||||||||||||
Subtotal | 622.7 | (5.5) | 659.0 | (0.9) | 664.9 | ||||||||||||||||||||||||
Supplemental and Voluntary | |||||||||||||||||||||||||||||
Individual Disability | 71.4 | (5.9) | 75.9 | (1.7) | 77.2 | ||||||||||||||||||||||||
Voluntary Benefits | 241.6 | (19.6) | 300.6 | (0.8) | 303.1 | ||||||||||||||||||||||||
Dental and Vision | 63.9 | (14.3) | 74.6 | 7.5 | 69.4 | ||||||||||||||||||||||||
Subtotal | 376.9 | (16.4) | 451.1 | 0.3 | 449.7 | ||||||||||||||||||||||||
Total Sales | $ | 999.6 | (10.0) | $ | 1,110.1 | (0.4) | $ | 1,114.6 | |||||||||||||||||||||
Sales by Market Sector | |||||||||||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||
Core Market (< 2,000 employees) | $ | 377.0 | 1.7 | % | $ | 370.8 | (6.2) | % | $ | 395.1 | |||||||||||||||||||
Large Case Market | 245.7 | (14.7) | 288.2 | 6.8 | 269.8 | ||||||||||||||||||||||||
Subtotal | 622.7 | (5.5) | 659.0 | (0.9) | 664.9 | ||||||||||||||||||||||||
Supplemental and Voluntary | 376.9 | (16.4) | 451.1 | 0.3 | 449.7 | ||||||||||||||||||||||||
Total Sales | $ | 999.6 | (10.0) | $ | 1,110.1 | (0.4) | $ | 1,114.6 | |||||||||||||||||||||
(in millions of pounds, except ratios) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||
Group Long-term Disability | £ | 284.2 | 2.7 | % | £ | 276.8 | 2.9 | % | £ | 269.0 | |||||||||||||||||||
Group Life | 84.6 | (6.7) | 90.7 | 9.3 | 83.0 | ||||||||||||||||||||||||
Supplemental | 77.7 | 11.0 | 70.0 | 14.2 | 61.3 | ||||||||||||||||||||||||
Total Premium Income | 446.5 | 2.1 | 437.5 | 5.9 | 413.3 | ||||||||||||||||||||||||
Net Investment Income | 76.0 | (16.0) | 90.5 | 4.6 | 86.5 | ||||||||||||||||||||||||
Other Income | 0.1 | (50.0) | 0.2 | N.M. | — | ||||||||||||||||||||||||
Total | 522.6 | (1.1) | 528.2 | 5.7 | 499.8 | ||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 352.5 | 5.1 | 335.5 | 9.1 | 307.4 | ||||||||||||||||||||||||
Commissions | 28.1 | (1.7) | 28.6 | 5.5 | 27.1 | ||||||||||||||||||||||||
Deferral of Acquisition Costs | (4.2) | (22.2) | (5.4) | 8.0 | (5.0) | ||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 5.3 | (1.9) | 5.4 | (11.5) | 6.1 | ||||||||||||||||||||||||
Other Expenses | 86.5 | 3.3 | 83.7 | 4.4 | 80.2 | ||||||||||||||||||||||||
Total | 468.2 | 4.6 | 447.8 | 7.7 | 415.8 | ||||||||||||||||||||||||
Adjusted Operating Income | £ | 54.4 | (32.3) | £ | 80.4 | (4.3) | £ | 84.0 | |||||||||||||||||||||
Weighted Average Pound/Dollar Exchange Rate | 1.287 | 1.279 | 1.336 | ||||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||
Benefit Ratio | 78.9 | % | 76.7 | % | 74.4 | % | |||||||||||||||||||||||
Other Expense Ratio | 19.4 | % | 19.1 | % | 19.4 | % | |||||||||||||||||||||||
Adjusted Operating Income Ratio | 12.2 | % | 18.4 | % | 20.3 | % | |||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||
Group Long-term Disability | 88.2 | % | 89.9 | % | 87.8 | % | |||||||||||||||||||||||
Group Life | 81.8 | % | 89.0 | % | 88.5 | % | |||||||||||||||||||||||
Supplemental | 90.7 | % | 89.9 | % | 93.1 | % | |||||||||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars and pounds) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Unum International Sales by Product | |||||||||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||||||||
Group Long-term Disability | $ | 37.7 | (12.7) | % | $ | 43.2 | (3.4) | % | $ | 44.7 | |||||||||||||||||||
Group Life | 20.6 | (15.2) | 24.3 | 13.0 | 21.5 | ||||||||||||||||||||||||
Supplemental | 18.9 | (3.1) | 19.5 | 12.1 | 17.4 | ||||||||||||||||||||||||
Unum Poland* | 13.3 | 2.3 | 13.0 | N.M. | 3.4 | ||||||||||||||||||||||||
Total Sales | $ | 90.5 | (9.5) | $ | 100.0 | 14.9 | $ | 87.0 | |||||||||||||||||||||
Unum International Sales by Market Sector | |||||||||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||
Core Market (< 500 employees) | $ | 36.2 | (5.2) | % | $ | 38.2 | 4.4 | % | $ | 36.6 | |||||||||||||||||||
Large Case Market | 22.1 | (24.6) | 29.3 | (1.0) | 29.6 | ||||||||||||||||||||||||
Subtotal | 58.3 | (13.6) | 67.5 | 2.0 | 66.2 | ||||||||||||||||||||||||
Supplemental | 18.9 | (3.1) | 19.5 | 12.1 | 17.4 | ||||||||||||||||||||||||
Unum Poland* | 13.3 | 2.3 | 13.0 | N.M. | 3.4 | ||||||||||||||||||||||||
Total Sales | $ | 90.5 | (9.5) | $ | 100.0 | 14.9 | $ | 87.0 | |||||||||||||||||||||
Unum UK Sales by Product | |||||||||||||||||||||||||||||
Group Long-term Disability | £ | 29.5 | (12.5) | % | £ | 33.7 | 0.6 | % | £ | 33.5 | |||||||||||||||||||
Group Life | 16.1 | (15.3) | 19.0 | 17.3 | 16.2 | ||||||||||||||||||||||||
Supplemental | 14.9 | (1.3) | 15.1 | 18.0 | 12.8 | ||||||||||||||||||||||||
Total Sales | £ | 60.5 | (10.8) | £ | 67.8 | 8.5 | £ | 62.5 | |||||||||||||||||||||
Unum UK Sales by Market Sector | |||||||||||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||
Core Market (< 500 employees) | £ | 28.3 | (5.4) | % | £ | 29.9 | 8.3 | % | £ | 27.6 | |||||||||||||||||||
Large Case Market | 17.3 | (24.1) | 22.8 | 3.2 | 22.1 | ||||||||||||||||||||||||
Subtotal | 45.6 | (13.5) | 52.7 | 6.0 | 49.7 | ||||||||||||||||||||||||
Supplemental | 14.9 | (1.3) | 15.1 | 18.0 | 12.8 | ||||||||||||||||||||||||
Total Sales | £ | 60.5 | (10.8) | £ | 67.8 | 8.5 | £ | 62.5 | |||||||||||||||||||||
* Results reflect activity subsequent to the October 1, 2018 acquisition of Unum Poland. See "2018 Acquisitions of Business" contained in "Executive Summary" herein in this Item 7 for further discussion. | |||||||||||||||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Sales by Product | |||||||||||||||||||||||||||||
Accident, Sickness, and Disability | $ | 261.5 | (26.2) | % | $ | 354.4 | (0.2) | % | $ | 355.0 | |||||||||||||||||||
Life | 88.8 | (27.6) | 122.7 | 9.7 | 111.9 | ||||||||||||||||||||||||
Cancer and Critical Illness | 62.8 | (29.4) | 88.9 | (5.8) | 94.4 | ||||||||||||||||||||||||
Total Sales | $ | 413.1 | (27.0) | $ | 566.0 | 0.8 | $ | 561.3 | |||||||||||||||||||||
Sales by Market Sector | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Core Market (< 1,000 employees) | $ | 266.2 | (23.0) | % | $ | 345.7 | (0.9) | % | $ | 349.0 | |||||||||||||||||||
Large Case Market | 57.4 | (29.5) | 81.4 | (14.8) | 95.5 | ||||||||||||||||||||||||
Subtotal | 323.6 | (24.2) | 427.1 | (3.9) | 444.5 | ||||||||||||||||||||||||
Public Sector | 89.5 | (35.6) | 138.9 | 18.9 | 116.8 | ||||||||||||||||||||||||
Total Sales | $ | 413.1 | (27.0) | $ | 566.0 | 0.8 | $ | 561.3 | |||||||||||||||||||||
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||
Long-term Care | $ | 666.9 | 2.3 | % | $ | 651.6 | 0.5 | % | $ | 648.3 | |||||||||||||||||||
Individual Disability | 319.6 | (14.6) | 374.3 | (11.1) | 420.8 | ||||||||||||||||||||||||
All Other | 7.9 | 3.9 | 7.6 | (5.0) | 8.0 | ||||||||||||||||||||||||
Total Premium Income | 994.4 | (3.8) | 1,033.5 | (4.0) | 1,077.1 | ||||||||||||||||||||||||
Net Investment Income | 1,370.3 | (2.5) | 1,404.9 | 2.0 | 1,377.1 | ||||||||||||||||||||||||
Other Income | 66.6 | (6.6) | 71.3 | (5.4) | 75.4 | ||||||||||||||||||||||||
Total | 2,431.3 | (3.1) | 2,509.7 | (0.8) | 2,529.6 | ||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 3,426.8 | 60.2 | 2,139.3 | (26.7) | 2,919.2 | ||||||||||||||||||||||||
Commissions | 78.4 | (3.2) | 81.0 | (3.7) | 84.1 | ||||||||||||||||||||||||
Interest and Debt Expense | 3.1 | (41.5) | 5.3 | (23.2) | 6.9 | ||||||||||||||||||||||||
Other Expenses | 158.7 | 8.4 | 146.4 | 1.2 | 144.7 | ||||||||||||||||||||||||
Total | 3,667.0 | 54.6 | 2,372.0 | (24.8) | 3,154.9 | ||||||||||||||||||||||||
Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses | (1,235.7) | N.M. | 137.7 | N.M. | (625.3) | ||||||||||||||||||||||||
Long-term Care Reserve Increase | 151.5 | N.M. | — | N.M. | 750.8 | ||||||||||||||||||||||||
Group Pension Reserve Increase | 17.5 | N.M. | — | — | — | ||||||||||||||||||||||||
Impacts from Closed Block Individual Disability Reinsurance Transaction | 1,305.5 | N.M. | — | — | — | ||||||||||||||||||||||||
Amortization of the Cost of Reinsurance | 2.6 | N.M. | — | — | — | ||||||||||||||||||||||||
Adjusted Operating Income | $ | 241.4 | 75.3 | $ | 137.7 | 9.7 | $ | 125.5 | |||||||||||||||||||||
Interest Adjusted Loss Ratios: | |||||||||||||||||||||||||||||
Long-term Care | 91.9 | % | 88.1 | % | 206.8 | % | |||||||||||||||||||||||
Long-term Care Excluding Reserve Increase | 68.9 | % | 91.0 | % | |||||||||||||||||||||||||
Individual Disability | N.M. | 78.8 | % | 80.4 | % | ||||||||||||||||||||||||
Individual Disability Excluding Impacts from Reinsurance Transaction | 85.1 | % | |||||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||
Other Expense Ratio | 16.0 | % | 14.2 | % | 13.4 | % | |||||||||||||||||||||||
Other Expense Ratio Excluding Impacts from Reinsurance Transaction | 13.6 | % | |||||||||||||||||||||||||||
Income (Loss) Ratio | (124.3) | % | (58.1) | % | |||||||||||||||||||||||||
Adjusted Operating Income Ratio | 24.3 | % | 13.3 | % | 11.7 | % | |||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||
Long-term Care | 94.8 | % | 95.7 | % | 95.8 | % | |||||||||||||||||||||||
Individual Disability | 88.0 | % | 88.1 | % | 88.3 | % | |||||||||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars) | |||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | % Change | 2019 | % Change | 2018 | |||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||
Net Investment Income | $ | 9.8 | (52.2) | % | $ | 20.5 | (30.5) | % | $ | 29.5 | |||||||||||||||||||
Other Income | 1.1 | (64.5) | 3.1 | 14.8 | 2.7 | ||||||||||||||||||||||||
Total | 10.9 | (53.8) | 23.6 | (26.7) | 32.2 | ||||||||||||||||||||||||
Interest, Debt, and Other Expenses | 247.7 | 3.4 | 239.5 | 17.8 | 203.3 | ||||||||||||||||||||||||
Loss Before Income Tax and Net Realized Investment Gains and Losses | (236.8) | (9.7) | (215.9) | (26.2) | (171.1) | ||||||||||||||||||||||||
Costs Related to Organizational Design Update | 23.3 | N.M. | — | — | — | ||||||||||||||||||||||||
Impairment Loss on ROU Asset | 12.7 | N.M. | — | — | — | ||||||||||||||||||||||||
Cost Related to Early Retirement of Debt | — | N.M. | 27.3 | N.M. | — | ||||||||||||||||||||||||
Adjusted Operating Loss | $ | (200.8) | (6.5) | $ | (188.6) | (10.2) | $ | (171.1) | |||||||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||
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 | $ | 3,228.2 | $ | 467.6 | $ | 69.3 | $ | 5.9 | $ | 3,158.9 | $ | 473.5 | ||||||||||||||||||||||||||
Capital Goods | 3,941.4 | 667.5 | 27.4 | 0.9 | 3,914.0 | 668.4 | ||||||||||||||||||||||||||||||||
Communications | 2,806.1 | 575.0 | 70.9 | 7.2 | 2,735.2 | 582.2 | ||||||||||||||||||||||||||||||||
Consumer Cyclical | 1,585.3 | 247.0 | 51.8 | 1.4 | 1,533.5 | 248.4 | ||||||||||||||||||||||||||||||||
Consumer Non-Cyclical | 7,110.7 | 1,345.8 | 107.5 | 5.1 | 7,003.2 | 1,350.9 | ||||||||||||||||||||||||||||||||
Energy | 3,738.5 | 591.1 | 178.4 | 13.6 | 3,560.1 | 604.7 | ||||||||||||||||||||||||||||||||
Financial Institutions | 3,645.8 | 531.4 | 74.1 | 2.5 | 3,571.7 | 533.9 | ||||||||||||||||||||||||||||||||
Mortgage/Asset-Backed | 1,107.7 | 87.8 | 6.1 | 0.2 | 1,101.6 | 88.0 | ||||||||||||||||||||||||||||||||
Sovereigns | 1,168.2 | 265.3 | 20.3 | 1.2 | 1,147.9 | 266.5 | ||||||||||||||||||||||||||||||||
Technology | 1,806.8 | 218.9 | 11.1 | 7.1 | 1,795.7 | 226.0 | ||||||||||||||||||||||||||||||||
Transportation | 2,065.3 | 322.2 | 52.9 | 3.3 | 2,012.4 | 325.5 | ||||||||||||||||||||||||||||||||
U.S. Government Agencies and Municipalities | 4,971.0 | 802.1 | 133.5 | 1.5 | 4,837.5 | 803.6 | ||||||||||||||||||||||||||||||||
Public Utilities | 6,962.3 | 1,475.9 | 101.7 | 6.0 | 6,860.6 | 1,481.9 | ||||||||||||||||||||||||||||||||
Total | $ | 44,137.3 | $ | 7,597.6 | $ | 905.0 | $ | 55.9 | $ | 43,232.3 | $ | 7,653.5 |
(in millions of dollars) | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | $ | 4.0 | $ | 13.8 | $ | 16.1 | $ | 167.0 | $ | 0.5 | |||||||||||||||||||
> 90 <= 180 days | — | 4.5 | 77.1 | 0.7 | 3.1 | ||||||||||||||||||||||||
> 180 <= 270 days | 1.6 | 40.0 | 0.4 | 0.8 | 5.1 | ||||||||||||||||||||||||
> 270 days <= 1 year | 7.8 | 0.2 | 5.5 | 4.4 | 0.9 | ||||||||||||||||||||||||
> 1 year <= 2 years | 1.9 | 6.4 | 8.1 | 0.8 | 17.5 | ||||||||||||||||||||||||
> 2 years <= 3 years | 5.0 | 4.1 | 11.7 | 12.1 | 1.3 | ||||||||||||||||||||||||
> 3 years | 7.4 | 8.1 | 7.9 | 11.5 | 13.7 | ||||||||||||||||||||||||
Sub-total | 27.7 | 77.1 | 126.8 | 197.3 | 42.1 | ||||||||||||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | — | — | — | 114.6 | — | ||||||||||||||||||||||||
> 90 <= 180 days | — | — | 5.2 | 2.7 | — | ||||||||||||||||||||||||
> 180 <= 270 days | — | 1.0 | 3.8 | 12.8 | 15.1 | ||||||||||||||||||||||||
> 270 days <= 1 year | — | 3.8 | — | 12.5 | — | ||||||||||||||||||||||||
> 1 year <= 2 years | 10.2 | 9.8 | 13.6 | 5.7 | — | ||||||||||||||||||||||||
> 2 years <= 3 years | — | 8.1 | — | 1.2 | — | ||||||||||||||||||||||||
> 3 years | — | 13.8 | 13.9 | 10.6 | 10.5 | ||||||||||||||||||||||||
Sub-total | 10.2 | 36.5 | 36.5 | 160.1 | 25.6 | ||||||||||||||||||||||||
Fair Value < 40% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | — | — | — | 9.6 | — | ||||||||||||||||||||||||
> 270 days <= 1 year | — | — | — | 15.7 | — | ||||||||||||||||||||||||
> 1 year <= 2 years | — | — | — | 8.5 | — | ||||||||||||||||||||||||
> 2 years <= 3 years | — | — | — | 9.0 | — | ||||||||||||||||||||||||
> 3 years | — | — | — | 16.8 | — | ||||||||||||||||||||||||
Sub-total | — | — | — | 59.6 | — | ||||||||||||||||||||||||
Total | $ | 37.9 | $ | 113.6 | $ | 163.3 | $ | 417.0 | $ | 67.7 |
Fixed Maturity Securities - Energy Sector
As of December 31, 2020 |
||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||
Classification by Subsector | 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 | ||||||||||||||||||||||||||||||||
Midstream | $ | 1,901.0 | $ | 263.3 | $ | 63.4 | $ | 5.0 | $ | 1,837.6 | $ | 268.3 | ||||||||||||||||||||||||||
Oil and Gas-Independent | 879.1 | 152.6 | 81.4 | 5.7 | 797.7 | 158.3 | ||||||||||||||||||||||||||||||||
Oil Field | 86.1 | 10.9 | 10.8 | 1.7 | 75.3 | 12.6 | ||||||||||||||||||||||||||||||||
Oil-Integrated | 591.0 | 124.6 | 22.8 | 1.2 | 568.2 | 125.8 | ||||||||||||||||||||||||||||||||
Oil-Refining | 245.4 | 38.8 | — | — | 245.4 | 38.8 | ||||||||||||||||||||||||||||||||
Other Energy | 35.9 | 0.9 | — | — | 35.9 | 0.9 | ||||||||||||||||||||||||||||||||
Total | $ | 3,738.5 | $ | 591.1 | $ | 178.4 | $ | 13.6 | $ | 3,560.1 | $ | 604.7 | ||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Total | In 1 Year or Less | After 1 Year up to 3 Years | After 3 Years up to 5 Years | After 5 Years | |||||||||||||||||||||||||
Payments Due | |||||||||||||||||||||||||||||
Long-term Debt | $ | 6,092.3 | $ | 173.9 | $ | 349.8 | $ | 1,428.0 | $ | 4,140.6 | |||||||||||||||||||
Policyholder Liabilities | 47,296.0 | 5,061.3 | 7,672.0 | 6,022.2 | 28,540.5 | ||||||||||||||||||||||||
Pension and OPEB | 585.4 | 19.2 | 37.1 | 41.2 | 487.9 | ||||||||||||||||||||||||
Miscellaneous Liabilities | 1,492.2 | 1,310.5 | 10.2 | 16.8 | 154.7 | ||||||||||||||||||||||||
Operating Leases | 121.6 | 25.4 | 39.3 | 22.5 | 34.4 | ||||||||||||||||||||||||
Purchase Obligations | 807.0 | 733.6 | 73.2 | 0.2 | — | ||||||||||||||||||||||||
Total | $ | 56,394.5 | $ | 7,323.9 | $ | 8,181.6 | $ | 7,530.9 | $ | 33,358.1 | |||||||||||||||||||
Receipts Due | |||||||||||||||||||||||||||||
Reinsurance Recoverable | $ | 13,922.5 | $ | 1,122.4 | $ | 2,011.1 | $ | 1,853.7 | $ | 8,935.3 |
(in millions of dollars) | ||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 597.5 | $ | 1,741.6 | $ | 1,536.5 | ||||||||||||||
Net Cash Used by Investing Activities | (267.7) | (1,393.5) | (930.1) | |||||||||||||||||
Net Cash Used by Financing Activities | (216.9) | (358.0) | (589.8) | |||||||||||||||||
Net Change in Cash and Bank Deposits | $ | 112.9 | $ | (9.9) | $ | 16.6 |
AM Best | Fitch | Moody's | S&P | ||||||||||||||||||||
Outlook | Negative | Negative | Negative | Stable | |||||||||||||||||||
Issuer Credit Ratings | bbb | BBB- | Baa3 | BBB | |||||||||||||||||||
Financial Strength Ratings | |||||||||||||||||||||||
Provident Life and Accident Insurance Company | A | A- | A3 | A | |||||||||||||||||||
Provident Life and Casualty Insurance Company | A | A- | NR | NR | |||||||||||||||||||
Unum Life Insurance Company of America | A | A- | A3 | A | |||||||||||||||||||
First Unum Life Insurance Company | 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- |
December 31, 2020 | |||||||||||||||||||||||
(in millions of dollars) | Notional Amount of Derivatives | Fair Value | Hypothetical | ||||||||||||||||||||
FV + 100 BP | Change in FV | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed Maturity Securities 1
|
$ | 44,137.3 | $ | 40,420.9 | $ | (3,716.4) | |||||||||||||||||
Mortgage Loans | 2,641.8 | 2,480.9 | (160.9) | ||||||||||||||||||||
Policy Loans, Net of Reinsurance Ceded | 460.2 | 436.7 | (23.5) | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Unrealized Adjustment to Reserves, Net of Reinsurance Ceded and Deferred Acquisition Costs 2
|
$ | (6,110.5) | $ | (3,003.6) | $ | 3,106.9 | |||||||||||||||||
Long-term Debt | (3,887.4) | (3,560.0) | 327.4 | ||||||||||||||||||||
Derivatives 1
|
|||||||||||||||||||||||
Swaps | $ | 732.5 | $ | (39.4) | $ | (97.6) | $ | (58.2) | |||||||||||||||
Forwards | 11.9 | (0.5) | (0.1) | 0.4 | |||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (39.8) | (35.0) | 4.8 |
December 31, 2019 | |||||||||||||||||||||||
(in millions of dollars) | Notional Amount of Derivatives | Fair Value | Hypothetical | ||||||||||||||||||||
FV + 100 BP | Change in FV | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed Maturity Securities 1
|
$ | 47,443.7 | $ | 43,612.8 | $ | (3,830.9) | |||||||||||||||||
Mortgage Loans | 2,556.3 | 2,391.5 | (164.8) | ||||||||||||||||||||
Policy Loans, Net of Reinsurance Ceded | 420.8 | 389.7 | (31.1) | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Unrealized Adjustment to Reserves, Net of Reinsurance Ceded and Deferred Acquisition Costs 2
|
$ | (5,441.1) | $ | (2,626.8) | $ | 2,814.3 | |||||||||||||||||
Long-term Debt | (3,239.0) | (2,940.1) | 298.9 | ||||||||||||||||||||
Derivatives 1
|
|||||||||||||||||||||||
Swaps | $ | 872.5 | $ | (7.2) | $ | (36.5) | $ | (29.3) | |||||||||||||||
Forwards | 8.9 | 0.1 | (0.1) | (0.2) | |||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (22.8) | (22.7) | 0.1 |
1st Line: Own and Manage | 2nd Line: Oversee | 3rd Line: Independent Assurance | ||||||||||||
Business processes and procedures employed throughout the Company through which management assumes and monitors significant risks | Governing bodies chartered with oversight of activities within the 1st and 2nd lines of defense, mitigation of substantial exposures, and management of emerging risks | Independent assurance on the effectiveness of governance, risk management, and internal control performed by internal audit and the board of directors | ||||||||||||
Reserves for Long Term Care Policy and Contract Benefits | ||||||||||||||
Description of the Matter | The Company’s reserves for individual and group long-term care policy and contract benefits are $12.8 billion of the $49.7 billion of Reserves for Future Policy and Contract Benefits on the consolidated balance sheet as of December 31, 2020. The two primary categories of long-term care reserves are policy reserves for claims not yet incurred and claim reserves for claims that have been incurred or are estimated to have been incurred but not yet reported. Notes 1 and 6 to the consolidated financial statements describe the accounting for these reserves. | |||||||||||||
Policy reserves are established based on a gross premium valuation method to estimate the difference between projected future policy benefits and future premiums utilizing assumptions established as of the most recent loss recognition. Claim reserves are established based on a tabular reserve methodology representing assumptions reflecting the best estimate of the present value of the liability for future claim payments and claim adjustment expenses. Management is required to evaluate its long-term care reserves each period to determine if a reserve deficiency exists. There is significant uncertainty in estimating long-term care reserves given the extended period over which claims are paid and sensitivity of the estimate to assumptions, including morbidity, mortality, claims incidence and resolutions, persistency, interest rates, and future premium rate increases. In connection with the annual review of long-term care policy and claim reserve adequacy, the Company increased its long-term care policy and claim reserves by $151.5 million as of December 31, 2020. | ||||||||||||||
Auditing the long-term care policy and contract benefits reserves was complex due to the highly judgmental nature of the significant assumptions including morbidity, mortality, claims incidence and resolutions, persistency, interest rates and future premium rate increases used in the measurement process. The significant judgment and the sensitivity of the estimate to these assumptions can have a material effect on the valuation of the liability. | ||||||||||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s internal controls over the long-term care reserves process, including controls over the review and approval of assumptions which incorporate the Company’s most recent experience. | |||||||||||||
To test long-term care policy and contract benefits liability we performed audit procedures, with the assistance of our actuarial specialists, that included, among others, an evaluation of the methodologies applied by management’s actuarial specialists with those methods used in prior periods. We evaluated the significant assumptions used by management in determining the policy and claims reserves by comparing the significant assumptions, including expected morbidity, mortality, claims incidence and resolutions, persistency, interest rates, and future premium rate increases to historical assumptions, prior actual experience, policyholder experience studies performed by management, available industry information, observable market data, or management’s estimates of prospective changes in these assumptions. In addition, we performed a review of the historical results of the development of the estimate, assessed management’s annual reserve adequacy test, evaluated the reasonableness of the additional reserves resulting from the reserve adequacy test, and performed an independent recalculation of policy and contract benefit reserves for a sample of contracts which we compared to the actuarial model used by management. | ||||||||||||||
Accounting for Reinsurance of Closed Block Individual Disability Insurance | ||||||||||||||
Description of the Matter | As discussed in Note 12 to the consolidated financial statements, in December 2020, the Company entered into a series of agreements (collectively referred to as the "reinsurance agreement") to reinsure a substantial portion of the closed block individual disability insurance business (IDI Closed Block) to Commonwealth Annuity and Life Insurance Company (Commonwealth) with a reinsurance effective date of July 1, 2020. The Company ceded $6.1 billion of disabled life reserves on a coinsurance basis along with transferring $6.7 billion of fixed maturity securities and cash supporting the reserves and payment of a $438 million ceding commission to Commonwealth. In addition, the Company provided a 12-year volatility cover for the active life reserve cohort of the IDI Closed Block in exchange for a payment of $62 million from Commonwealth. The transfer of the disabled life reserves were accounted for as reinsurance and the active life cohort was accounted for using the deposit method. The Company recorded a cost of reinsurance asset of $815.7 million for this transaction that will be amortized over the remaining life of the IDI Closed Block. | |||||||||||||
Auditing the reinsurance of the closed block individual disability insurance was complex due to multiple elements of the transaction including the assessment of risk transfer, determination of the cost of reinsurance asset, accounting for transfers of assets and liabilities and recording of the reinsurance recoverable amounts. | ||||||||||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of the controls over the reinsurance agreement process including, among others, controls related to whether the agreement passes risk transfer, the determination of the cost of reinsurance, and the accounting for transfers of assets and liabilities and recording of the reinsurance recoverable amounts. | |||||||||||||
Our audit procedures included, among others, assessing the terms of the reinsurance agreement with Commonwealth, evaluating management’s risk transfer conclusion, testing the calculation of the cost of reinsurance and the recognized investments gains and benefit expense amounts, and testing the reinsurance recoverable recorded. |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Assets | |||||||||||
Investments | |||||||||||
Fixed Maturity Securities - at fair value (amortized cost of $36,546.5; $41,079.3; allowance for credit losses of $6.8; $—)
|
$ | 44,137.3 | $ | 47,443.7 | |||||||
Mortgage Loans (net of allowance for credit losses of $13.1; $—)
|
2,432.1 | 2,397.0 | |||||||||
Policy Loans | 3,683.9 | 3,779.5 | |||||||||
Other Long-term Investments | 960.2 | 844.2 | |||||||||
Short-term Investments | 1,470.0 | 1,294.5 | |||||||||
Total Investments | 52,683.5 | 55,758.9 | |||||||||
Other Assets | |||||||||||
Cash and Bank Deposits | 197.0 | 84.1 | |||||||||
Accounts and Premiums Receivable (net of allowance for credit losses of $38.8; $10.3)
|
1,519.3 | 1,602.9 | |||||||||
Reinsurance Recoverable (net of allowance for credit losses of $11.7; $—)
|
10,666.0 | 4,780.7 | |||||||||
Accrued Investment Income | 611.4 | 693.0 | |||||||||
Deferred Acquisition Costs | 2,272.6 | 2,324.0 | |||||||||
Goodwill | 353.0 | 351.7 | |||||||||
Property and Equipment | 498.0 | 534.1 | |||||||||
Income Tax Receivable | 72.7 | — | |||||||||
Other Assets | 1,752.3 | 884.0 | |||||||||
Total Assets | $ | 70,625.8 | $ | 67,013.4 |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Policy and Contract Benefits | $ | 1,855.4 | $ | 1,745.5 | |||||||
Reserves for Future Policy and Contract Benefits | 49,653.0 | 47,780.1 | |||||||||
Unearned Premiums | 349.3 | 363.9 | |||||||||
Other Policyholders’ Funds | 1,663.9 | 1,599.7 | |||||||||
Income Tax Payable | — | 256.7 | |||||||||
Deferred Income Tax | 416.1 | 95.4 | |||||||||
Short-term Debt | — | 399.7 | |||||||||
Long-term Debt | 3,345.7 | 2,926.9 | |||||||||
Other Liabilities | 2,471.4 | 1,880.5 | |||||||||
Total Liabilities | 59,754.8 | 57,048.4 | |||||||||
Commitments and Contingent Liabilities - Note 14 | |||||||||||
Stockholders' Equity | |||||||||||
Common Stock, $0.10 par
|
|||||||||||
Authorized: 725,000,000 shares
|
|||||||||||
Issued: 306,566,572 and 305,813,326 shares
|
30.7 | 30.6 | |||||||||
Additional Paid-in Capital | 2,376.2 | 2,348.1 | |||||||||
Accumulated Other Comprehensive Income | 374.2 | 37.3 | |||||||||
Retained Earnings | 11,269.6 | 10,728.7 | |||||||||
Treasury Stock - at cost: 102,876,514 shares
|
(3,179.7) | (3,179.7) | |||||||||
Total Stockholders' Equity | 10,871.0 | 9,965.0 | |||||||||
Total Liabilities and Stockholders' Equity | $ | 70,625.8 | $ | 67,013.4 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars, except share data) | |||||||||||||||||
Revenue | |||||||||||||||||
Premium Income | $ | 9,378.1 | $ | 9,365.6 | $ | 8,986.1 | |||||||||||
Net Investment Income | 2,360.7 | 2,435.3 | 2,453.7 | ||||||||||||||
Net Realized Investment Gain (Loss) | 1,199.1 | (23.2) | (39.5) | ||||||||||||||
Other Income | 224.2 | 221.2 | 198.2 | ||||||||||||||
Total Revenue | 13,162.1 | 11,998.9 | 11,598.5 | ||||||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 8,972.9 | 7,496.2 | 8,020.4 | ||||||||||||||
Commissions | 1,057.3 | 1,122.7 | 1,108.4 | ||||||||||||||
Interest and Debt Expense | 188.2 | 177.4 | 167.3 | ||||||||||||||
Cost Related to Early Retirement of Debt | — | 27.3 | — | ||||||||||||||
Deferral of Acquisition Costs | (576.2) | (658.6) | (668.0) | ||||||||||||||
Amortization of Deferred Acquisition Costs | 606.1 | 609.9 | 565.5 | ||||||||||||||
Compensation Expense | 953.2 | 898.3 | 885.9 | ||||||||||||||
Other Expenses | 996.6 | 943.6 | 891.2 | ||||||||||||||
Total Benefits and Expenses | 12,198.1 | 10,616.8 | 10,970.7 | ||||||||||||||
Income Before Income Tax | 964.0 | 1,382.1 | 627.8 | ||||||||||||||
Income Tax Expense (Benefit) | |||||||||||||||||
Current | (116.6) | 274.8 | 227.4 | ||||||||||||||
Deferred | 287.6 | 7.0 | (123.0) | ||||||||||||||
Total Income Tax Expense | 171.0 | 281.8 | 104.4 | ||||||||||||||
Net Income | $ | 793.0 | $ | 1,100.3 | $ | 523.4 | |||||||||||
Net Income Per Common Share | |||||||||||||||||
Basic | $ | 3.89 | $ | 5.25 | $ | 2.38 | |||||||||||
Assuming Dilution | $ | 3.89 | $ | 5.24 | $ | 2.38 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Net Income | $ | 793.0 | $ | 1,100.3 | $ | 523.4 | |||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||
Change in Net Unrealized Gain on Securities Before Adjustment (net of tax expense (benefit) of $250.2; $757.0; $(614.2))
|
983.0 | 2,870.9 | (2,314.5) | ||||||||||||||
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance (net of tax expense (benefit) of $(138.2); $(511.7); $371.7)
|
(531.2) | (1,942.6) | 1,411.8 | ||||||||||||||
Change in Net Gain on Hedges (net of tax benefit of $23.8; $17.0; $8.2)
|
(90.0) | (62.8) | (31.7) | ||||||||||||||
Change in Foreign Currency Translation Adjustment (net of tax expense (benefit) of $(4.3); $0.2; $(0.6))
|
20.3 | 23.6 | (50.7) | ||||||||||||||
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense (benefit) of $(34.8); $(9.3); $17.0)
|
(45.2) | (37.6) | 60.9 | ||||||||||||||
Total Other Comprehensive Income (Loss) | 336.9 | 851.5 | (924.2) | ||||||||||||||
Comprehensive Income (Loss) | $ | 1,129.9 | $ | 1,951.8 | $ | (400.8) |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Common Stock | |||||||||||||||||
Balance at Beginning of Year | $ | 30.6 | $ | 30.5 | $ | 30.5 | |||||||||||
Common Stock Activity | 0.1 | 0.1 | — | ||||||||||||||
Balance at End of Year | 30.7 | 30.6 | 30.5 | ||||||||||||||
Additional Paid-in Capital | |||||||||||||||||
Balance at Beginning of Year | 2,348.1 | 2,321.7 | 2,303.3 | ||||||||||||||
Common Stock Activity | 28.1 | 26.4 | 18.4 | ||||||||||||||
Balance at End of Year | 2,376.2 | 2,348.1 | 2,321.7 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
Balance at Beginning of Year | 37.3 | (814.2) | 127.5 | ||||||||||||||
Adjustment to Adopt Accounting Standard Update - Note 1 | — | — | (17.5) | ||||||||||||||
Balance at Beginning of Year, as Adjusted | 37.3 | (814.2) | 110.0 | ||||||||||||||
Other Comprehensive Income (Loss) | 336.9 | 851.5 | (924.2) | ||||||||||||||
Balance at End of Year | 374.2 | 37.3 | (814.2) | ||||||||||||||
Retained Earnings | |||||||||||||||||
Balance at Beginning of Year | 10,728.7 | 9,863.1 | 9,542.2 | ||||||||||||||
Adjustment to Adopt Accounting Standard Update - Note 1 | (18.9) | (3.4) | 14.5 | ||||||||||||||
Balance at Beginning of Year, as Adjusted | 10,709.8 | 9,859.7 | 9,556.7 | ||||||||||||||
Net Income | 793.0 | 1,100.3 | 523.4 | ||||||||||||||
Dividends to Stockholders (per common share: $1.14; $1.09; $0.98)
|
(233.2) | (231.3) | (217.0) | ||||||||||||||
Balance at End of Year | 11,269.6 | 10,728.7 | 9,863.1 | ||||||||||||||
Treasury Stock | |||||||||||||||||
Balance at Beginning of Year | (3,179.7) | (2,779.3) | (2,428.6) | ||||||||||||||
Purchases of Treasury Stock | — | (400.4) | (350.7) | ||||||||||||||
Balance at End of Year | (3,179.7) | (3,179.7) | (2,779.3) | ||||||||||||||
Total Stockholders' Equity at End of Year | $ | 10,871.0 | $ | 9,965.0 | $ | 8,621.8 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||
Net Income | $ | 793.0 | $ | 1,100.3 | $ | 523.4 | |||||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||||||||||||
Change in Receivables | 242.9 | 37.5 | (4.7) | ||||||||||||||
Change in Deferred Acquisition Costs | 29.9 | (48.7) | (102.5) | ||||||||||||||
Change in Insurance Reserves and Liabilities | 1,610.0 | 376.1 | 1,193.1 | ||||||||||||||
Change in Income Taxes | (31.3) | 248.2 | (39.1) | ||||||||||||||
Change in Other Accrued Liabilities | 160.1 | 51.3 | (10.1) | ||||||||||||||
Non-cash Components of Net Investment Income | (120.5) | (237.9) | (211.1) | ||||||||||||||
Net Realized Investment (Gain) Loss | (1,199.1) | 23.2 | 39.5 | ||||||||||||||
Depreciation | 113.6 | 110.1 | 101.4 | ||||||||||||||
Cash Related to Reinsurance Agreement | (1,084.6) | — | — | ||||||||||||||
Other, Net | 83.5 | 81.5 | 46.6 | ||||||||||||||
Net Cash Provided by Operating Activities | 597.5 | 1,741.6 | 1,536.5 | ||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||
Proceeds from Sales of Fixed Maturity Securities | 990.8 | 955.2 | 642.5 | ||||||||||||||
Proceeds from Maturities of Fixed Maturity Securities | 2,052.4 | 2,401.0 | 2,815.4 | ||||||||||||||
Proceeds from Sales and Maturities of Other Investments | 237.0 | 363.5 | 454.0 | ||||||||||||||
Purchase of Fixed Maturity Securities | (3,169.6) | (4,022.4) | (3,861.7) | ||||||||||||||
Purchase of Other Investments | (440.6) | (568.5) | (623.2) | ||||||||||||||
Net Sales (Purchases) of Short-term Investments | (133.1) | (267.6) | 200.5 | ||||||||||||||
Net Increase (Decrease) in Payables for Collateral on Investments | 314.5 | (104.1) | (268.1) | ||||||||||||||
Acquisition of Business (Net of Cash Acquired) | — | — | (145.4) | ||||||||||||||
Net Purchases of Property and Equipment | (119.1) | (150.9) | (144.1) | ||||||||||||||
Other, Net | — | 0.3 | — | ||||||||||||||
Net Cash Used by Investing Activities | (267.7) | (1,393.5) | (930.1) | ||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||
Short-term Debt Repayment | (400.0) | — | (200.0) | ||||||||||||||
Issuance of Long-term Debt | 494.1 | 841.9 | 290.7 | ||||||||||||||
Long-term Debt Repayment | (80.0) | (493.1) | (60.0) | ||||||||||||||
Cost Related to Early Retirement of Debt | — | (25.9) | — | ||||||||||||||
Issuance of Common Stock | 4.4 | 6.1 | 4.6 | ||||||||||||||
Repurchase of Common Stock | — | (400.3) | (356.2) | ||||||||||||||
Dividends Paid to Stockholders | (231.9) | (229.2) | (215.6) | ||||||||||||||
Cash Received Related to Active Life Volatility Cover Agreement | 62.1 | — | — | ||||||||||||||
Other, Net | (65.6) | (57.5) | (53.3) | ||||||||||||||
Net Cash Used by Financing Activities | (216.9) | (358.0) | (589.8) | ||||||||||||||
Net Increase (Decrease) in Cash and Bank Deposits | 112.9 | (9.9) | 16.6 | ||||||||||||||
Cash and Bank Deposits at Beginning of Year | 84.1 | 94.0 | 77.4 | ||||||||||||||
Cash and Bank Deposits at End of Year | $ | 197.0 | $ | 84.1 | $ | 94.0 |
Accounting Standards Codification (ASC) | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 350 "Intangibles - Goodwill and Other" | This update eliminated the requirement to calculate the implied fair value of goodwill (the second step in the current two-step test) to measure a goodwill impairment charge. Instead, entities should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the excess of the carrying amount over the fair value, with the loss not to exceed the total amount of goodwill allocated to that reporting unit. This guidance was applied in the period of adoption. | January 1, 2020 | The adoption of this update did not have an effect on our financial position or results of operations. | |||||||||||||||||
ASC 820 "Fair Value Measurement" | This update amended the fair value measurement guidance by removing or clarifying certain existing disclosure requirements, while also adding new disclosure requirements. Specifically, this update removed certain disclosures related to Level 1 and Level 2 transfers and removed the discussion regarding valuation processes of Level 3 fair value measurements. The update modified guidance related to investments in certain entities that calculate net asset value to explicitly require disclosure regarding timing of liquidation of the investee's assets and timing of redemption restrictions. The update added disclosures around the changes in unrealized gains and losses in other comprehensive income for recurring Level 3 investments held at the end of the reporting period and adds disclosures regarding certain unobservable inputs on Level 3 fair value measurements. The guidance was applied both retrospectively and prospectively, depending on the specific requirement of the update. | December 31, 2018 for the removal and modification of certain disclosures and January 1, 2020 for the addition of certain disclosures. | The adoption of this update modified our disclosures but did not have an impact on our financial position or results of operations. | |||||||||||||||||
ASC 715 "Compensation - Retirement Benefits" | This update amends the defined benefit pension and other postretirement benefit guidance by removing or clarifying certain existing disclosure requirements, while also adding new disclosure requirements. Specifically, this update removes the requirement to disclose the effects of a one-percentage point change in the assumed healthcare cost trend and the requirement to disclose amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost of the next year. This update adds a requirement to describe the reasons for significant gains and losses related to changes in the benefit obligation for the period. The update also clarifies that the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) and fair value of plan assets are to be disclosed for plans with PBOs or ABOs in excess of plan assets. The guidance is to be applied retrospectively and early adoption is permitted. | December 31, 2020 | The adoption of this update modified our disclosures but did not have an impact on our financial position or results of operations. | |||||||||||||||||
Accounting Standards Codification (ASC) | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 326 "Financial Instruments - Credit Losses" | This update amended the guidance on the impairment of financial instruments. The 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. The current expected credit loss model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. The update also 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. The reversal of previously recognized credit losses on available-for-sale fixed maturity securities is allowed under specified circumstances. Additional disclosures are also required, including information used to develop the allowance for losses. The guidance was applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. For available-for-sale fixed maturity securities, the update was applied prospectively. Other-than-temporary impairment losses recognized on available-for-sale fixed maturity securities prior to adoption of the update cannot be reversed. This guidance was applied in the period of adoption. | January 1, 2020 | See the summary table below for the financial statement impacts of this adoption on our financial statement line items at January 1, 2020. In addition, see Note 3 of the "Notes to Consolidated Financial Statements" contained herein in this Item 1 for the additional disclosures required by the update. | |||||||||||||||||
Balance at December 31, 2019 |
Balance at
January 1, 2020 |
Effect of Change | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Adjustments due to ASC 326 | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
Assets | |||||||||||||||||
Mortgage Loans | $ | 2,397.0 | $ | 2,388.7 | $ | (8.3) | |||||||||||
Reinsurance Recoverable | 4,780.7 | 4,778.9 | (1.8) | ||||||||||||||
Accounts and Premiums Receivable | 1,602.9 | 1,589.4 | (13.5) | ||||||||||||||
Liabilities | |||||||||||||||||
Deferred Income Tax | 95.4 | 90.4 | (5.0) | ||||||||||||||
Other Liabilities | 1,856.5 | 1,856.8 | 0.3 | ||||||||||||||
Stockholders' Equity | |||||||||||||||||
Retained Earnings | 10,728.7 | 10,709.8 | (18.9) |
Accounting Standards Codification (ASC) | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 220 "Income Statement - Reporting Comprehensive Income" | This update allowed entities to make an accounting policy election to reclassify the disproportionate tax effects arising as a result of the recognition of the enactment of the tax bill, H.R.1, An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, more commonly known as TCJA, from accumulated other comprehensive income to retained earnings. Tax effects that are disproportionate in accumulated other comprehensive income for reasons other than the TCJA may not be reclassified. This update required additional disclosures on whether an entity elects to reclassify the disproportionate tax effects and its policy for releasing tax effects from accumulated other comprehensive income. | January 1, 2019 | The adoption of this update expanded certain of our disclosures but had no impact on our financial position or results of operations because we did not make the optional accounting policy election to reclassify the disproportionate tax effects resulting from the TCJA from accumulated other comprehensive income to retained earnings. | |||||||||||||||||
ASC 310 "Receivables - Nonrefundable Fees and Other Costs" | This update shortened the amortization period to the earliest call date for certain callable debt securities held at a premium. This update did not impact securities held at a discount. | January 1, 2019 | The adoption of this update did not have a material impact on our financial position or results of operations. | |||||||||||||||||
ASC 718 "Compensation - Stock Compensation" | This update generally aligned the accounting guidance for share-based payments issued to non-employees with guidance for share-based payments issued to employees. Specifically, the update required non-employee share-based payments to be measured using the grant date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered rather than being remeasured through the performance completion date. Additionally, for non-employee share-based payments that contain performance conditions, the update changed the criteria regarding the recognition of compensation cost to when achievement of a performance condition is probable rather than upon actual achievement of the performance condition. | January 1, 2019 | The adoption of this update did not have an impact on our financial position or results of operations. | |||||||||||||||||
ASC 842 "Leases" | This update changed the accounting for leases, requiring 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. Expense recognition for lessees remained similar to previous accounting requirements for capital and operating leases. For lessors, the guidance modified the classification criteria and the accounting for sales-type and direct financing leases. The guidance was applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at the beginning of the period of adoption. In addition, the package of practical expedients available to leases that commenced prior to the date of adoption was applied. | January 1, 2019 | The adoption of this update resulted in the recognition of a lease liability of $122.0 million, with a corresponding right-of-use asset of $117.7 million, less an immaterial cumulative-effect decrease to retained earnings of $3.4 million related to our operating leases. There were also immaterial impacts to deferred income tax and income tax payable. This update did not have an impact on our results of operations, but it expanded our disclosures. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 230 "Statement of Cash Flows" | This update provided clarifying guidance intended to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addressed eight specific cash flow issues that relate to various types of transactions. The guidance was applied retrospectively. | January 1, 2018 | The adoption of this update resulted in the reclassification of certain cash inflows between investing activities and operating activities within our consolidated statements of cash flows. The reclassification primarily related to cash distributions from equity method investees and the bifurcation of those distributions as either returns on investment or returns of investment which resulted in a reclassification of cash inflows from investing activities to operating activities. The remaining portion of the reclassification related to the receipt of proceeds from corporate-owned life insurance benefits which resulted in a reclassification of cash inflows from operating activities to investing activities. The adoption of this update had no effect on our financial position or results of operations. | |||||||||||||||||
ASC 606 "Revenue from Contracts with Customers" | These updates superseded virtually all existing guidance regarding the recognition of revenue from customers. Specifically excluded from the scope of these updates are insurance contracts, although our fee-based service products are included within the scope. Our fee-based service products, which are primarily sold in our Unum US segment, are reported in other income within our consolidated statements of income and represent less than one percent of our total revenue. The core principle of this guidance is that revenue recognition should depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Accordingly, we continue to recognize revenue for these fee-based service products as services are rendered. | January 1, 2018 | The adoption of these updates did not have an impact on our financial position or results of operations and did not result in expanded disclosures due to the immaterial nature of our fee-based service products relative to our overall business. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 715 "Compensation - Retirement Benefits" | This update required the service cost component of net periodic pension and postretirement benefit costs to be included as a component of compensation costs in an entity's statement of income. Other components of net periodic pension and postretirement benefit costs are required to be presented separately from the service cost along with a disclosure identifying the line items in which these costs are presented in the statement of income. The amendments in this update were applied retrospectively or prospectively depending on the specific requirement of the update. | January 1, 2018 | The adoption of this update resulted in the reclassification of service cost from the other expenses line item to the compensation expense line item on our consolidated statements of income but had no effect on our financial position or results of operations. We elected to use the practical expedient for the retrospective application of this update. | |||||||||||||||||
ASC 740 "Income Taxes" | This update eliminated the exception that required the tax effect of intra-entity asset transfers other than inventory to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. It required recognition of tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. | January 1, 2018 | The adoption of this update did not have an impact on our financial position or results of operations. | |||||||||||||||||
ASC 815 "Derivatives and Hedge Accounting" | This update provided targeted improvements to accounting for hedging activities for both nonfinancial and financial risk components, aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements, eases certain documentation and effectiveness assessment requirements, and enhances transparency through expanded disclosures. The amended presentation and disclosure guidance was adopted prospectively. Early adoption was permitted. | January 1, 2018 | We elected to early adopt this update. The adoption of this update did not have an impact on our financial position or results of operations; however, it expanded our disclosures. This update also simplified hedge documentation requirements and expanded available hedging strategies. | |||||||||||||||||
ASC 825 "Financial Instruments - Overall" | This update changed the accounting and disclosure requirements for certain financial instruments. These changes include a requirement to measure equity investments, other than those that result in consolidation or are accounted for under the equity method, at fair value through net income unless the investment qualifies for certain practicability exceptions. In addition, the update clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. Changes also included the modification of certain disclosures around the fair value of financial instruments, including the requirement for separate presentation of financial assets and liabilities by measurement category, as well as the elimination of certain disclosures around methods and significant assumptions used to estimate fair value. The guidance was applied using a modified retrospective approach through a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year of adoption. | January 1, 2018 |
The adoption of this update resulted in a cumulative-effect reduction to accumulated other comprehensive income of $17.5 million with a corresponding increase to retained earnings of $14.5 million, a decrease to other long-term investments of $3.8 million, and a decrease to deferred income tax liability of $0.8 million.
|
ASC | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 740 "Income Taxes" | The amendments in this update simplify the accounting for income taxes by removing certain exceptions in the guidance related to the following: 1. losses in continuing operations when there is income in other items, 2. foreign subsidiaries becoming equity method investments and vice versa, and 3. year-to-date interim period losses exceeding anticipated loss for the year. The amendments also simplify the accounting for income taxes related to the following: 1. franchise taxes partially based on income, 2. step up in the tax basis of goodwill, 3. allocation of tax expense to entities not subject to tax, 4. enacted changes in tax law or rates in interim periods, and 5. employee stock ownership programs and investments in qualified affordable housing projects accounted for using the equity method. | January 1, 2021 | The adoption of this update will not have a material effect on our financial position or results of operations. | |||||||||||||||||
ASC 848 "Reference Rate Reform" | The amendments in this update provide optional guidance, for a limited period of time, to ease the potential burden in accounting for and recognizing the effects of reference rate reform on financial reporting. The guidance allows for various practical expedients and exceptions when applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Specifically, the guidance provides certain practical expedients for contract modifications, fair value hedges, and cash flow hedges and also provides certain exceptions related to changes in the critical terms of a hedging relationship. The guidance also allows for a one-time election to sell or transfer debt securities that were both classified as held-to-maturity prior to January 1, 2020 and reference a rate affected by the reform. | Adoption is permitted as of the beginning of the interim period that includes March 12, 2020 (the issuance date of the update), or any date thereafter, through December 31, 2022, at which point the guidance will sunset. | We have not yet determined the impact on our financial position or results of operations if we elect to adopt this guidance. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 944 "Financial Services - Insurance" | This update significantly amends the accounting and disclosure requirements for long-duration insurance contracts. These changes include a requirement to review, and if necessary, update cash flow assumptions used to measure the liability for future policy benefits for traditional and limited-payment contracts at least annually, with changes recognized in earnings. In addition, an entity will be required to update the discount rate assumption at each reporting date using a yield that is reflective of an upper-medium grade fixed-income instrument, with changes recognized in other comprehensive income. These changes result in the elimination of the provision for risk of adverse deviation and premium deficiency (or loss recognition) testing. The update also requires that an entity measure all market risk benefits associated with deposit contracts at fair value, with changes recognized in earnings except for the portion attributable to a change in the instrument-specific credit risk, which is to be recognized in other comprehensive income. This update also simplifies the amortization of deferred acquisition costs by requiring amortization on a constant level basis over the expected term of the related contracts. Deferred acquisition costs are required to be written off for unexpected contract terminations but are no longer subject to an impairment test. Significant additional disclosures will also be required, which include disaggregated rollforwards of certain liability balances and the disclosure of qualitative and quantitative information about expected cash flows, estimates, and assumptions. The application of this guidance will vary based upon the specific requirements of the update but will generally result in either a modified retrospective or full retrospective approach with changes applied as of the beginning of the earliest period presented. Early adoption is permitted. | January 1, 2023 | We are currently evaluating the impact of the update and expect that the adoption may have a material impact on our financial position and results of operations. The update will also significantly expand our disclosures. |
Level 2 | Level 3 | ||||||||||||||||
Instrument | Observable Inputs | Unobservable Inputs | |||||||||||||||
Public Utilities - Continued | |||||||||||||||||
Non-binding broker quotes | Analysis of similar bonds, adjusted for comparability | ||||||||||||||||
Benchmark yields | Discount for size - illiquidity | ||||||||||||||||
Transactional data for new issuances and secondary trades | Volatility of credit | ||||||||||||||||
Security cash flows and structures | Lack of marketability | ||||||||||||||||
Recent issuance / supply | |||||||||||||||||
Audited financial statements | |||||||||||||||||
Security and issuer level spreads | |||||||||||||||||
Security creditor ratings/maturity/capital structure/optionality | |||||||||||||||||
Public covenants | |||||||||||||||||
Comparative bond analysis | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||
Valuation Method | Principally the market and income approaches | Principally the market approach | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||||||||||||||
Non-binding broker quotes | Prices obtained from external pricing services | ||||||||||||||||
Security cash flows and structures | |||||||||||||||||
Underlying collateral | |||||||||||||||||
Prepayment speeds/loan performance/delinquencies | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Audited financial statements | |||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||
Valuation Method | Principally the market and income approaches | Principally the market and income approaches | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Change in benchmark reference | |||||||||||||||
Non-binding broker quotes | Discount for size - illiquidity | ||||||||||||||||
Benchmark yields | Volatility of credit | ||||||||||||||||
Transactional data for new issuances and secondary trades | Lack of marketability | ||||||||||||||||
Security cash flows and structures | Prices obtained from external pricing services | ||||||||||||||||
Recent issuance / supply | |||||||||||||||||
Security and issuer level spreads | |||||||||||||||||
Security creditor ratings/maturity/capital structure/optionality | |||||||||||||||||
Level 2 | Level 3 | ||||||||||||||||
Instrument | Observable Inputs | Unobservable Inputs | |||||||||||||||
All Other Corporate Bonds - Continued | |||||||||||||||||
Public covenants | |||||||||||||||||
Comparative bond analysis | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Audited financial statements | |||||||||||||||||
Redeemable Preferred Stocks | |||||||||||||||||
Valuation Method | Principally the market approach | Principally the market approach | |||||||||||||||
Valuation Techniques / Inputs | Non-binding broker quotes | Financial statement analysis | |||||||||||||||
Benchmark yields | |||||||||||||||||
Comparative bond analysis | |||||||||||||||||
Call provisions | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Audited financial statements | |||||||||||||||||
Perpetual Preferred and Equity Securities | |||||||||||||||||
Valuation Method | Principally the market approach | Principally the market and income approaches | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Financial statement analysis | |||||||||||||||
Non-binding broker quotes |
December 31, 2020 | ||||||||||||||||||||||||||
Investment Category | Fair Value | Redemption Term / Redemption Notice | Unfunded Commitments | |||||||||||||||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||||||||||||||||
Private Credit | (a) | $ | 233.3 | Not redeemable | $ | 178.9 | ||||||||||||||||||||
40.4 | Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice | 1.3 | ||||||||||||||||||||||||
Total Private Credit | 273.7 | 180.2 | ||||||||||||||||||||||||
Private Equity | (b) | 232.6 | Not redeemable | 191.0 | ||||||||||||||||||||||
9.2 | Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice | 34.3 | ||||||||||||||||||||||||
Total Private Equity | 241.8 | 225.3 | ||||||||||||||||||||||||
Real Assets | (c) | 176.3 | Not redeemable | 185.2 | ||||||||||||||||||||||
55.7 | Quarterly / 90 days notice | — | ||||||||||||||||||||||||
Total Real Assets | 232.0 | 185.2 | ||||||||||||||||||||||||
Total Partnerships | $ | 747.5 | $ | 590.7 |
December 31, 2019 | ||||||||||||||||||||
Investment Category | Fair Value | Redemption Term / Redemption Notice | Unfunded Commitments | |||||||||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||||||||||
Private Credit | (a) | $ | 223.6 | Not redeemable | $ | 152.6 | ||||||||||||||
39.6 | Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice | 0.1 | ||||||||||||||||||
Total Private Credit | 263.2 | 152.7 | ||||||||||||||||||
Private Equity | (b) | 149.3 | Not redeemable | 166.8 | ||||||||||||||||
Real Assets | (c) | 173.8 | Not redeemable | 130.6 | ||||||||||||||||
30.4 | Quarterly / 90 days notice | 25.0 | ||||||||||||||||||
Total Real Assets | 204.2 | 155.6 | ||||||||||||||||||
Total Partnerships | $ | 616.7 | $ | 475.1 |
December 31, 2020 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | — | $ | 709.8 | $ | — | $ | — | $ | 709.8 | |||||||||||||||||||
States, Municipalities, and Political Subdivisions | — | 4,245.7 | 15.5 | — | 4,261.2 | ||||||||||||||||||||||||
Foreign Governments | — | 1,146.4 | 21.8 | — | 1,168.2 | ||||||||||||||||||||||||
Public Utilities | 131.9 | 6,644.7 | 185.7 | — | 6,962.3 | ||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | — | 1,026.4 | 81.3 | — | 1,107.7 | ||||||||||||||||||||||||
All Other Corporate Bonds | 4,089.4 | 24,886.1 | 943.1 | — | 29,918.6 | ||||||||||||||||||||||||
Redeemable Preferred Stocks | — | 9.5 | — | — | 9.5 | ||||||||||||||||||||||||
Total Fixed Maturity Securities | 4,221.3 | 38,668.6 | 1,247.4 | — | 44,137.3 | ||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | — | 19.7 | — | — | 19.7 | ||||||||||||||||||||||||
Credit Default Swaps | — | 0.1 | — | — | 0.1 | ||||||||||||||||||||||||
Total Derivatives | — | 19.8 | — | — | 19.8 | ||||||||||||||||||||||||
Perpetual Preferred Equity Securities | 8.4 | 15.2 | 4.7 | — | 28.3 | ||||||||||||||||||||||||
Private Equity Partnerships | — | — | — | 747.5 | 747.5 | ||||||||||||||||||||||||
Total Other Long-term Investments | 8.4 | 35.0 | 4.7 | 747.5 | 795.6 | ||||||||||||||||||||||||
Total Financial Instrument Assets Carried at Fair Value | $ | 4,229.7 | $ | 38,703.6 | $ | 1,252.1 | $ | 747.5 | $ | 44,932.9 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Forwards | $ | — | $ | 0.5 | $ | — | $ | — | $ | 0.5 | |||||||||||||||||||
Foreign Exchange Contracts | — | 59.2 | — | — | 59.2 | ||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 39.8 | — | 39.8 | ||||||||||||||||||||||||
Total Derivatives | — | 59.7 | 39.8 | — | 99.5 | ||||||||||||||||||||||||
Total Financial Instrument Liabilities Carried at Fair Value | $ | — | $ | 59.7 | $ | 39.8 | $ | — | $ | 99.5 |
December 31, 2019 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 412.8 | $ | 988.9 | $ | — | $ | — | $ | 1,401.7 | |||||||||||||||||||
States, Municipalities, and Political Subdivisions | — | 3,321.6 | 41.8 | — | 3,363.4 | ||||||||||||||||||||||||
Foreign Governments | — | 995.9 | 21.8 | — | 1,017.7 | ||||||||||||||||||||||||
Public Utilities | 171.1 | 7,546.5 | 14.6 | — | 7,732.2 | ||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | — | 1,444.6 | 34.1 | — | 1,478.7 | ||||||||||||||||||||||||
All Other Corporate Bonds | 4,114.4 | 27,695.5 | 600.5 | — | 32,410.4 | ||||||||||||||||||||||||
Redeemable Preferred Stocks | — | 39.6 | — | — | 39.6 | ||||||||||||||||||||||||
Total Fixed Maturity Securities | 4,698.3 | 42,032.6 | 712.8 | — | 47,443.7 | ||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | — | 27.0 | — | — | 27.0 | ||||||||||||||||||||||||
Credit Default Swaps | — | 0.5 | — | — | 0.5 | ||||||||||||||||||||||||
Total Derivatives | — | 27.5 | — | — | 27.5 | ||||||||||||||||||||||||
Perpetual Preferred Equity Securities | — | 28.0 | 4.6 | — | 32.6 | ||||||||||||||||||||||||
Private Equity Partnerships | — | — | — | 616.7 | 616.7 | ||||||||||||||||||||||||
Total Other Long-term Investments | — | 55.5 | 4.6 | 616.7 | 676.8 | ||||||||||||||||||||||||
Total Financial Instrument Assets Carried at Fair Value | $ | 4,698.3 | $ | 42,088.1 | $ | 717.4 | $ | 616.7 | $ | 48,120.5 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Interest Rate Swaps | $ | — | $ | 0.6 | $ | — | $ | — | $ | 0.6 | |||||||||||||||||||
Foreign Exchange Contracts | — | 34.0 | — | — | 34.0 | ||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 22.8 | — | 22.8 | ||||||||||||||||||||||||
Total Derivatives | — | 34.6 | 22.8 | — | 57.4 | ||||||||||||||||||||||||
Total Financial Instrument Liabilities Carried at Fair Value | $ | — | $ | 34.6 | $ | 22.8 | $ | — | $ | 57.4 |
Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Beginning
of Year |
Total Realized and
Unrealized Investment Gains (Losses) Included in |
Purchases | Sales | Level 3 Transfers |
Fair Value End of
Year |
Change in Unrealized
Gain (Loss) on Securities Held at the End of Period included in |
||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings |
OCI1
|
Into | Out of |
OCI1
|
Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 41.8 | $ | — | $ | 2.2 | $ | — | $ | — | $ | — | $ | (28.5) | $ | 15.5 | $ | 1.7 | $ | — | ||||||||||||||||||||||||||||||||||||
Foreign Governments | 21.8 | — | — | — | — | — | — | 21.8 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Public Utilities | 14.6 | — | 3.8 | — | — | 175.9 | (8.6) | 185.7 | 3.7 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | 34.1 | — | (3.0) | — | (67.9) | 118.1 | — | 81.3 | (3.5) | — | ||||||||||||||||||||||||||||||||||||||||||||||
All Other Corporate Bonds | 600.5 | — | 29.8 | 194.7 | (36.1) | 343.1 | (188.9) | 943.1 | 26.7 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total Fixed Maturity Securities | 712.8 | — | 32.8 | 194.7 | (104.0) | 637.1 | (226.0) | 1,247.4 | 28.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Perpetual Preferred Equity Securities | 4.6 | 0.1 | — | — | — | — | — | 4.7 | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (22.8) | (17.0) | — | — | — | — | — | (39.8) | — | (17.0) | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Realized and
Unrealized Investment Gains (Losses) Included in |
|||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Beginning
of Year |
Earnings |
Other
Comprehensive Income or Loss |
Purchases | Sales | Level 3 Transfers |
Fair Value End of
Year |
|||||||||||||||||||||||||||||||||||||||||
Into | Out of | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | — | $ | — | $ | 2.8 | $ | 13.3 | $ | — | $ | 25.7 | $ | — | $ | 41.8 | |||||||||||||||||||||||||||||||
Foreign Governments | 31.4 | — | 0.6 | — | (10.2) | — | — | 21.8 | |||||||||||||||||||||||||||||||||||||||
Public Utilities | 84.7 | — | 0.8 | — | — | 6.0 | (76.9) | 14.6 | |||||||||||||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | — | — | (2.7) | — | — | 36.8 | — | 34.1 | |||||||||||||||||||||||||||||||||||||||
All Other Corporate Bonds | 1,495.8 | — | (3.1) | 93.0 | (86.0) | 190.6 | (1,089.8) | 600.5 | |||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | 21.1 | — | — | — | — | — | (21.1) | — | |||||||||||||||||||||||||||||||||||||||
Total Fixed Maturity Securities | 1,633.0 | — | (1.6) | 106.3 | (96.2) | 259.1 | (1,187.8) | 712.8 | |||||||||||||||||||||||||||||||||||||||
Perpetual Preferred Equity Securities | 4.6 | — | — | — | — | — | — | 4.6 | |||||||||||||||||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (31.1) | 8.3 | — | — | — | — | — | (22.8) |
December 31, 2020 | |||||||||||||||||||||||
Fair Value | Valuation Method | Unobservable Input | Range/Weighted Average | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||
All Other Corporate Bonds - Private | $ | 45.7 | Market Approach |
Volatility of Credit
|
(b) |
0.50% - 24.90% / 3.63%
|
|||||||||||||||||
Perpetual Preferred Equity Securities | 4.7 | Market Approach |
Market Convention
|
(c) | Priced at Cost or Owner's Equity | ||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (39.8) | Discounted Cash Flows |
Projected Liability Cash Flows
Weighted Spread of Swap Curve |
(d) |
Actuarial Assumptions
1.0% |
December 31, 2019 | |||||||||||||||||||||||
Fair Value | Valuation Method | Unobservable Input | Range/Weighted Average | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||
All Other Corporate Bonds - Private | $ | 119.2 | Market Approach |
Lack of Marketability
Volatility of Credit
Market Convention
|
(a)
(b)
(c)
|
4.56% - 4.56% / 4.56%
0.35% - 17.68% / 2.2%
Priced at Par
|
|||||||||||||||||
Perpetual Preferred Equity Securities | 4.6 | Market Approach | Market Convention | (c) | Priced at Cost or Owner's Equity | ||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (22.8) | Discounted Cash Flows |
Projected Liability Cash Flows
Weighted Spread of Swap Curve |
(d) |
Actuarial Assumptions
0.8% |
December 31, 2020 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage Loans | $ | — | $ | 2,641.8 | $ | — | $ | 2,641.8 | $ | 2,432.1 | |||||||||||||||||||
Policy Loans | — | — | 3,850.8 | 3,850.8 | 3,683.9 | ||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Miscellaneous Long-term Investments | — | 28.2 | 29.3 | 57.5 | 57.5 | ||||||||||||||||||||||||
Total Financial Instrument Assets Not Carried at Fair Value | $ | — | $ | 2,670.0 | $ | 3,880.1 | $ | 6,550.1 | $ | 6,173.5 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term Debt | $ | 2,393.1 | $ | 1,494.3 | $ | — | $ | 3,887.4 | $ | 3,345.7 | |||||||||||||||||||
Payable for Collateral on FHLB Funding Agreements | — | 312.2 | — | 312.2 | 312.2 | ||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Unfunded Commitments | — | 0.9 | — | 0.9 | 0.9 | ||||||||||||||||||||||||
Total Financial Instrument Liabilities Not Carried at Fair Value | $ | 2,393.1 | $ | 1,807.4 | $ | — | $ | 4,200.5 | $ | 3,658.8 | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage Loans | $ | — | $ | 2,556.3 | $ | — | $ | 2,556.3 | $ | 2,397.0 | |||||||||||||||||||
Policy Loans | — | — | 3,911.4 | 3,911.4 | 3,779.5 | ||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Miscellaneous Long-term Investments | — | 18.5 | 58.4 | 76.9 | 76.9 | ||||||||||||||||||||||||
Total Financial Instrument Assets Not Carried at Fair Value | $ | — | $ | 2,574.8 | $ | 3,969.8 | $ | 6,544.6 | $ | 6,253.4 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term Debt | $ | 1,712.8 | $ | 1,526.2 | $ | — | $ | 3,239.0 | $ | 2,926.9 | |||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Unfunded Commitments | — | 1.9 | — | 1.9 | 1.9 | ||||||||||||||||||||||||
Total Financial Instrument Liabilities Not Carried at Fair Value | $ | 1,712.8 | $ | 1,528.1 | $ | — | $ | 3,240.9 | $ | 2,928.8 | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Amortized
Cost |
ACL1
|
Gross
Unrealized Gain |
Gross
Unrealized Loss |
Fair
Value |
|||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 559.0 | $ | — | $ | 150.8 | $ | — | $ | 709.8 | |||||||||||||||||||
States, Municipalities, and Political Subdivisions | 3,609.9 | — | 652.8 | 1.5 | 4,261.2 | ||||||||||||||||||||||||
Foreign Governments | 902.9 | — | 266.5 | 1.2 | 1,168.2 | ||||||||||||||||||||||||
Public Utilities | 5,486.4 | — | 1,481.9 | 6.0 | 6,962.3 | ||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | 1,019.9 | — | 88.0 | 0.2 | 1,107.7 | ||||||||||||||||||||||||
All Other Corporate Bonds | 24,958.8 | 6.8 | 5,013.5 | 46.9 | 29,918.6 | ||||||||||||||||||||||||
Redeemable Preferred Stocks | 9.6 | — | — | 0.1 | 9.5 | ||||||||||||||||||||||||
Total Fixed Maturity Securities | $ | 36,546.5 | $ | 6.8 | $ | 7,653.5 | $ | 55.9 | $ | 44,137.3 |
December 31, 2019 | |||||||||||||||||||||||
Amortized
Cost |
Gross
Unrealized Gain |
Gross
Unrealized Loss |
Fair
Value |
||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 1,246.1 | $ | 156.0 | $ | 0.4 | $ | 1,401.7 | |||||||||||||||
States, Municipalities, and Political Subdivisions | 2,863.1 | 507.6 | 7.3 | 3,363.4 | |||||||||||||||||||
Foreign Governments | 843.5 | 175.2 | 1.0 | 1,017.7 | |||||||||||||||||||
Public Utilities | 6,436.7 | 1,303.7 | 8.2 | 7,732.2 | |||||||||||||||||||
Mortgage/Asset-Backed Securities | 1,377.8 | 101.3 | 0.4 | 1,478.7 | |||||||||||||||||||
All Other Corporate Bonds | 28,273.1 | 4,211.2 | 73.9 | 32,410.4 | |||||||||||||||||||
Redeemable Preferred Stocks | 39.0 | 0.6 | — | 39.6 | |||||||||||||||||||
Total Fixed Maturity Securities | $ | 41,079.3 | $ | 6,455.6 | $ | 91.2 | $ | 47,443.7 |
December 31, 2020 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||||||||
Fair
Value |
Gross
Unrealized Loss |
Fair
Value |
Gross
Unrealized Loss |
||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 133.4 | $ | 1.5 | $ | 0.1 | $ | — | |||||||||||||||
Foreign Governments | 20.3 | 1.2 | — | — | |||||||||||||||||||
Public Utilities | 76.3 | 3.7 | 25.4 | 2.3 | |||||||||||||||||||
Mortgage/Asset-Backed Securities | 3.0 | 0.1 | 3.1 | 0.1 | |||||||||||||||||||
All Other Corporate Bonds | 520.4 | 22.4 | 113.5 | 24.5 | |||||||||||||||||||
Redeemable Preferred Stocks | 9.5 | 0.1 | — | — | |||||||||||||||||||
Total Fixed Maturity Securities | $ | 762.9 | $ | 29.0 | $ | 142.1 | $ | 26.9 |
December 31, 2019 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||||||||
Fair
Value |
Gross
Unrealized Loss |
Fair
Value |
Gross
Unrealized Loss |
||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 110.2 | $ | 0.4 | $ | — | $ | — | |||||||||||||||
States, Municipalities, and Political Subdivisions | 331.0 | 7.3 | 0.3 | — | |||||||||||||||||||
Foreign Governments | 69.4 | 1.0 | — | — | |||||||||||||||||||
Public Utilities | 168.3 | 2.6 | 37.0 | 5.6 | |||||||||||||||||||
Mortgage/Asset-Backed Securities | 47.0 | 0.4 | 3.1 | — | |||||||||||||||||||
All Other Corporate Bonds | 579.1 | 29.1 | 379.8 | 44.8 | |||||||||||||||||||
Total Fixed Maturity Securities | $ | 1,305.0 | $ | 40.8 | $ | 420.2 | $ | 50.4 |
December 31, 2020 | |||||||||||||||||||||||||||||
Amortized Cost, Net of ACL | Unrealized Gain Position | Unrealized Loss Position | |||||||||||||||||||||||||||
Gross Gain | Fair Value | Gross Loss | Fair Value | ||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
1 year or less | $ | 881.8 | $ | 19.5 | $ | 836.4 | $ | 2.9 | $ | 62.0 | |||||||||||||||||||
Over 1 year through 5 years | 6,162.6 | 589.9 | 6,545.7 | 22.9 | 183.9 | ||||||||||||||||||||||||
Over 5 years through 10 years | 10,886.9 | 1,914.8 | 12,659.4 | 10.7 | 131.6 | ||||||||||||||||||||||||
Over 10 years | 17,588.5 | 5,041.3 | 22,089.2 | 19.2 | 521.4 | ||||||||||||||||||||||||
35,519.8 | 7,565.5 | 42,130.7 | 55.7 | 898.9 | |||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | 1,019.9 | 88.0 | 1,101.6 | 0.2 | 6.1 | ||||||||||||||||||||||||
Total Fixed Maturity Securities | $ | 36,539.7 | $ | 7,653.5 | $ | 43,232.3 | $ | 55.9 | $ | 905.0 |
December 31, 2019 | |||||||||||||||||||||||||||||
Total
Amortized Cost |
Unrealized Gain Position | Unrealized Loss Position | |||||||||||||||||||||||||||
Gross Gain | Fair Value | Gross Loss | Fair Value | ||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
1 year or less | $ | 821.5 | $ | 14.5 | $ | 832.6 | $ | 0.2 | $ | 3.2 | |||||||||||||||||||
Over 1 year through 5 years | 6,286.2 | 456.5 | 6,423.4 | 41.7 | 277.6 | ||||||||||||||||||||||||
Over 5 years through 10 years | 13,570.8 | 1,688.3 | 14,881.3 | 14.6 | 363.2 | ||||||||||||||||||||||||
Over 10 years | 19,023.0 | 4,195.0 | 22,152.6 | 34.3 | 1,031.1 | ||||||||||||||||||||||||
39,701.5 | 6,354.3 | 44,289.9 | 90.8 | 1,675.1 | |||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | 1,377.8 | 101.3 | 1,428.6 | 0.4 | 50.1 | ||||||||||||||||||||||||
Total Fixed Maturity Securities | $ | 41,079.3 | $ | 6,455.6 | $ | 45,718.5 | $ | 91.2 | $ | 1,725.2 |
Gross Unrealized Loss | |||||||||||||||||||||||
Fair Value | Gross Unrealized Gain | Amount | Percent of Total Gross Unrealized Loss | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Investment-Grade | $ | 40,637.2 | $ | 7,371.5 | $ | 18.1 | 32.4 | % | |||||||||||||||
Below-Investment-Grade | 3,500.1 | 282.0 | 37.8 | 67.6 | |||||||||||||||||||
Total Fixed Maturity Securities | $ | 44,137.3 | $ | 7,653.5 | $ | 55.9 | 100.0 | % |
Year Ended | ||||||||
(in millions of dollars) | ||||||||
Balance, beginning of period | $ | — | ||||||
Credit losses on securities for which credit losses were not previously recorded | 44.5 | |||||||
Change in allowance due to change in intent to hold securities to maturity | (37.7) | |||||||
Change in allowance on securities with allowance recorded in previous period | — | |||||||
Balance, end of period | $ | 6.8 |
Year Ended December 31 | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Income Tax Credits | $ | 33.2 | $ | 37.8 | $ | 41.4 | |||||||||||||||||||||||
Amortization, Net of Tax | (21.9) | (25.2) | (28.1) | ||||||||||||||||||||||||||
Income Tax Benefit | $ | 11.3 | $ | 12.6 | $ | 13.3 |
December 31 | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Carrying | Percent of | Carrying | Percent of | ||||||||||||||||||||
Amount | Total | Amount | Total | ||||||||||||||||||||
Property Type | |||||||||||||||||||||||
Apartment | $ | 638.0 | 26.2 | % | $ | 608.8 | 25.4 | % | |||||||||||||||
Industrial | 654.0 | 26.9 | 623.6 | 26.0 | |||||||||||||||||||
Office | 517.8 | 21.3 | 549.3 | 22.9 | |||||||||||||||||||
Retail | 575.6 | 23.7 | 567.5 | 23.7 | |||||||||||||||||||
Other | 46.7 | 1.9 | 47.8 | 2.0 | |||||||||||||||||||
Total | $ | 2,432.1 | 100.0 | % | $ | 2,397.0 | 100.0 | % |
Region | |||||||||||||||||||||||
New England | $ | 40.0 | 1.6 | % | $ | 28.9 | 1.2 | % | |||||||||||||||
Mid-Atlantic | 202.5 | 8.2 | 184.5 | 7.7 | |||||||||||||||||||
East North Central | 330.4 | 13.6 | 329.2 | 13.7 | |||||||||||||||||||
West North Central | 196.1 | 8.1 | 215.4 | 9.0 | |||||||||||||||||||
South Atlantic | 512.0 | 21.1 | 509.2 | 21.2 | |||||||||||||||||||
East South Central | 110.0 | 4.5 | 114.3 | 4.8 | |||||||||||||||||||
West South Central | 257.4 | 10.6 | 246.6 | 10.3 | |||||||||||||||||||
Mountain | 268.8 | 11.1 | 268.2 | 11.2 | |||||||||||||||||||
Pacific | 514.9 | 21.2 | 500.7 | 20.9 | |||||||||||||||||||
Total | $ | 2,432.1 | 100.0 | % | $ | 2,397.0 | 100.0 | % |
December 31 | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in millions of dollars) | |||||||||||||||||
Carrying Amount | Percent of Total | Carrying Amount | Percent of Total | ||||||||||||||
Internal Rating | |||||||||||||||||
AA | $ | 3.5 | 0.1 | % | $ | — | — | % | |||||||||
A | 510.0 | 21.0 | % | 485.6 | 20.3 | % | |||||||||||
BBB | 1,863.0 | 76.6 | 1,911.4 | 79.7 | |||||||||||||
BB | 39.4 | 1.6 | — | — | |||||||||||||
B | 16.2 | 0.7 | — | — | |||||||||||||
Total | $ | 2,432.1 | 100.0 | % | $ | 2,397.0 | 100.0 | % |
Loan-to-Value Ratio | |||||||||||||||||
<= 65% | $ | 1,189.4 | 48.9 | % | $ | 1,215.1 | 50.7 | % | |||||||||
> 65% <= 75% | 1,000.3 | 41.1 | 1,053.0 | 43.9 | |||||||||||||
> 75% <= 85% | 155.8 | 6.4 | 91.4 | 3.8 | |||||||||||||
> 85% | 86.6 | 3.6 | 37.5 | 1.6 | |||||||||||||
Total | $ | 2,432.1 | 100.0 | % | $ | 2,397.0 | 100.0 | % |
Prior to 2016 | 2016 | 2017 | 2018 | 2019 | 2020 | Total | |||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||
Internal Rating | |||||||||||||||||||||||||||||||||||||||||
AA | $ | 3.5 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3.5 | |||||||||||||||||||||||||||
A | 240.3 | 119.5 | 56.3 | 60.2 | 16.9 | 18.0 | 511.2 | ||||||||||||||||||||||||||||||||||
BBB | 482.6 | 287.8 | 253.9 | 331.8 | 351.9 | 166.4 | 1,874.4 | ||||||||||||||||||||||||||||||||||
BB | 29.4 | — | 10.5 | — | — | — | 39.9 | ||||||||||||||||||||||||||||||||||
B | 16.2 | — | — | — | — | — | 16.2 | ||||||||||||||||||||||||||||||||||
Total Amortized Cost | 772.0 | 407.3 | 320.7 | 392.0 | 368.8 | 184.4 | 2,445.2 | ||||||||||||||||||||||||||||||||||
Allowance for credit losses | (2.4) | (2.0) | (1.9) | (2.4) | (2.9) | (1.5) | (13.1) | ||||||||||||||||||||||||||||||||||
Carrying Amount | $ | 769.6 | $ | 405.3 | $ | 318.8 | $ | 389.6 | $ | 365.9 | $ | 182.9 | $ | 2,432.1 | |||||||||||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||||||||||||||||||||
<=65% | $ | 598.5 | $ | 257.5 | $ | 139.0 | $ | 77.8 | $ | 82.8 | $ | 37.2 | $ | 1,192.8 | |||||||||||||||||||||||||||
>65<=75% | 47.2 | 122.5 | 109.9 | 294.8 | 286.0 | 147.2 | 1,007.6 | ||||||||||||||||||||||||||||||||||
>75%<=85% | 78.7 | 27.3 | 37.9 | 13.3 | — | — | 157.2 | ||||||||||||||||||||||||||||||||||
>85% | 47.6 | — | 33.9 | 6.1 | — | — | 87.6 | ||||||||||||||||||||||||||||||||||
Total Amortized Cost | 772.0 | 407.3 | 320.7 | 392.0 | 368.8 | 184.4 | 2,445.2 | ||||||||||||||||||||||||||||||||||
Allowance for credit losses | (2.4) | (2.0) | (1.9) | (2.4) | (2.9) | (1.5) | (13.1) | ||||||||||||||||||||||||||||||||||
Carrying Amount | $ | 769.6 | $ | 405.3 | $ | 318.8 | $ | 389.6 | $ | 365.9 | $ | 182.9 | $ | 2,432.1 | |||||||||||||||||||||||||||
Year Ended December 31, 2020
|
|||||||||||||||||||||||||||||
Beginning of Period | Current Period Provisions | Write-Offs | Recoveries | End of Period | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||||||||
<=65% | $ | 2.8 | $ | 0.6 | $ | — | $ | — | $ | 3.4 | |||||||||||||||||||
>65<=75% | 4.6 | 2.7 | — | — | 7.3 | ||||||||||||||||||||||||
>75%<=85% | 0.5 | 0.8 | — | — | 1.3 | ||||||||||||||||||||||||
>85% | 0.4 | 0.7 | — | — | 1.1 | ||||||||||||||||||||||||
Total | $ | 8.3 | $ | 4.8 | $ | — | $ | — | $ | 13.1 |
December 31 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Overnight and Continuous | |||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 0.1 | $ | — | |||||||||||||||||||||||||||||||
State, Municipalities, and Political Subdivisions | 0.4 | — | |||||||||||||||||||||||||||||||||
Public Utilities | 0.3 | — | |||||||||||||||||||||||||||||||||
All Other Corporate Bonds | 16.8 | — | |||||||||||||||||||||||||||||||||
Total Borrowings | $ | 17.6 | $ | — | |||||||||||||||||||||||||||||||
Gross Amount of Recognized Liability for Securities Lending Transactions | 17.6 | — | |||||||||||||||||||||||||||||||||
Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein | $ | — | $ | — |
December 31 | ||||||||||||||
2020 | 2019 | |||||||||||||
(in millions of dollars) | ||||||||||||||
Carrying Value of FHLB Common Stock | $ | 28.2 | $ | 18.5 | ||||||||||
Advances from FHLB | 312.2 | — | ||||||||||||
Carrying Value of Collateral Posted to FHLB | ||||||||||||||
Fixed Maturity Securities | $ | 944.0 | $ | 182.1 | ||||||||||
Commercial Mortgage Loans | 1,072.5 | 164.4 | ||||||||||||
Total Carrying Value of Collateral Posted to FHLB | $ | 2,016.5 | $ | 346.5 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Gross Amount | Gross Amount Not | |||||||||||||||||||||||||||||||||||||
of Recognized | Gross Amount | Net Amount | Offset in Balance Sheet | |||||||||||||||||||||||||||||||||||
Financial | Offset in | Presented in | Financial | Cash | Net | |||||||||||||||||||||||||||||||||
Instruments | Balance Sheet | Balance Sheet | Instruments | Collateral | Amount | |||||||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | 19.8 | $ | — | $ | 19.8 | $ | (10.1) | $ | (8.7) | $ | 1.0 | ||||||||||||||||||||||||||
Securities Lending | 96.6 | — | 96.6 | (79.0) | (17.6) | — | ||||||||||||||||||||||||||||||||
Total | $ | 116.4 | $ | — | $ | 116.4 | $ | (89.1) | $ | (26.3) | $ | 1.0 | ||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | 59.7 | $ | — | $ | 59.7 | $ | (59.0) | $ | — | $ | 0.7 | ||||||||||||||||||||||||||
Securities Lending | 17.6 | — | 17.6 | (17.6) | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 77.3 | $ | — | $ | 77.3 | $ | (76.6) | $ | — | $ | 0.7 |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Gross Amount | Gross Amount Not | |||||||||||||||||||||||||||||||||||||
of Recognized | Gross Amount | Net Amount | Offset in Balance Sheet | |||||||||||||||||||||||||||||||||||
Financial | Offset in | Presented in | Financial | Cash | Net | |||||||||||||||||||||||||||||||||
Instruments | Balance Sheet | Balance Sheet | Instruments | Collateral | Amount | |||||||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | 27.5 | $ | — | $ | 27.5 | $ | (4.0) | $ | (23.5) | $ | — | ||||||||||||||||||||||||||
Securities Lending | 176.4 | — | 176.4 | (176.4) | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 203.9 | $ | — | $ | 203.9 | $ | (180.4) | $ | (23.5) | $ | — | ||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | 34.6 | $ | — | $ | 34.6 | $ | (31.3) | $ | — | $ | 3.3 | ||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Fixed Maturity Securities | $ | 2,164.0 | $ | 2,213.6 | $ | 2,239.7 | |||||||||||
Derivatives | 78.7 | 73.4 | 66.1 | ||||||||||||||
Mortgage Loans | 108.9 | 103.3 | 110.1 | ||||||||||||||
Policy Loans | 20.0 | 19.9 | 18.6 | ||||||||||||||
Other Long-term Investments | |||||||||||||||||
Perpetual Preferred Securities1
|
(2.1) | 5.4 | (0.2) | ||||||||||||||
Private Equity Partnerships2
|
19.8 | 31.7 | 36.0 | ||||||||||||||
Other | 3.9 | 3.9 | 8.4 | ||||||||||||||
Short-term Investments | 10.5 | 29.0 | 23.7 | ||||||||||||||
Gross Investment Income | 2,403.7 | 2,480.2 | 2,502.4 | ||||||||||||||
Less Investment Expenses | 30.6 | 32.1 | 35.2 | ||||||||||||||
Less Investment Income on Participation Fund Account Assets | 12.4 | 12.8 | 13.5 | ||||||||||||||
Net Investment Income | $ | 2,360.7 | $ | 2,435.3 | $ | 2,453.7 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||
Gross Gains on Sales1
|
$ | 1,332.8 | $ | 22.9 | $ | 9.7 | |||||||||||
Gross Losses on Sales | (20.3) | (32.6) | (15.2) | ||||||||||||||
Credit Losses | (53.6) | (25.3) | (17.5) | ||||||||||||||
Mortgage Loans and Other Invested Assets | |||||||||||||||||
Gross Gains on Sales | 1.9 | 4.6 | 0.5 | ||||||||||||||
Gross Losses on Sales | (0.3) | (0.3) | — | ||||||||||||||
Impairment Loss | (36.6) | — | (1.4) | ||||||||||||||
Credit Losses | (4.6) | — | — | ||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (17.0) | 8.3 | (15.2) | ||||||||||||||
All Other Derivatives | (2.5) | (0.1) | 0.3 | ||||||||||||||
Foreign Currency Transactions | (0.7) | (0.7) | (0.7) | ||||||||||||||
Net Realized Investment Gain (Loss) | $ | 1,199.1 | $ | (23.2) | $ | (39.5) |
December 31 | ||||||||||||||
2020 | 2019 | |||||||||||||
(in millions of dollars) | ||||||||||||||
Carrying Value of Collateral Received from Counterparties | ||||||||||||||
Cash | $ | 8.7 | $ | 24.0 | ||||||||||
Carrying Value of Collateral Posted to Counterparties | ||||||||||||||
Fixed Maturity Securities | $ | 54.0 | $ | 28.6 | ||||||||||
Swaps | |||||||||||||||||||||||||||||||||||||||||
Receive
Variable/Pay Fixed |
Receive
Fixed/Pay Fixed |
Receive
Fixed/Pay Variable |
Credit Default | Forwards | Total | ||||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 48.0 | $ | 536.5 | $ | 250.0 | $ | 70.0 | $ | — | $ | 904.5 | |||||||||||||||||||||||||||||
Additions | — | 78.1 | — | 11.0 | 47.4 | 136.5 | |||||||||||||||||||||||||||||||||||
Terminations | 48.0 | 76.4 | — | 70.0 | 47.4 | 241.8 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | — | 538.2 | 250.0 | 11.0 | — | 799.2 | |||||||||||||||||||||||||||||||||||
Additions | — | 171.3 | — | — | 382.4 | 553.7 | |||||||||||||||||||||||||||||||||||
Terminations | — | 98.4 | — | — | 373.1 | 471.5 | |||||||||||||||||||||||||||||||||||
Foreign Currency | — | — | — | 0.4 | (0.4) | — | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | — | 611.1 | 250.0 | 11.4 | 8.9 | 881.4 | |||||||||||||||||||||||||||||||||||
Additions | — | 113.6 | — | — | 6.4 | 120.0 | |||||||||||||||||||||||||||||||||||
Terminations | — | 3.9 | 250.0 | — | 3.4 | 257.3 | |||||||||||||||||||||||||||||||||||
Foreign Currency | — | — | — | 0.3 | — | 0.3 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | — | $ | 720.8 | $ | — | $ | 11.7 | $ | 11.9 | $ | 744.4 |
Carrying Amount of Hedged Assets (Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities) | ||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Receive fixed functional currency interest, pay fixed foreign currency interest | $ | 404.5 | $ | 239.4 | $ | 24.4 | $ | 1.1 | |||||||||||||||
Long-term Debt | $ | — | $ | (249.2) | $ | — | $ | 0.6 |
December 31, 2020 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
Balance Sheet
Location |
Fair
Value |
Balance Sheet
Location |
Fair
Value |
||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Designated as Hedging Instruments | |||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | $ | 16.4 | Other Liabilities | $ | 9.4 | |||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | 3.3 | Other Liabilities | 26.0 | |||||||||||||||||||
Total Designated as Hedging Instruments | $ | 19.7 | $ | 35.4 | |||||||||||||||||||
Not Designated as Hedging Instruments | |||||||||||||||||||||||
Credit Default Swaps | Other L-T Investments | $ | 0.1 | Other Liabilities | $ | — | |||||||||||||||||
Forwards | Other L-T Investments | — | Other Liabilities | 0.5 | |||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | — | Other Liabilities | 23.8 | |||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other L-T Investments | — | Other Liabilities | 39.8 | |||||||||||||||||||
Total Not Designated as Hedging Instruments | $ | 0.1 | $ | 64.1 |
December 31, 2019 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
Balance Sheet
Location |
Fair
Value |
Balance Sheet
Location |
Fair
Value |
||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Designated as Hedging Instruments | |||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | $ | 19.4 | Other Liabilities | $ | 6.6 | |||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||
Interest Rate Swaps | Other L-T Investments | — | Other Liabilities | 0.6 | |||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | 7.6 | Other Liabilities | 5.0 | |||||||||||||||||||
Total Fair Value Hedges | 7.6 | 5.6 | |||||||||||||||||||||
Total Designated as Hedging Instruments | $ | 27.0 | $ | 12.2 | |||||||||||||||||||
Not Designated as Hedging Instruments | |||||||||||||||||||||||
Credit Default Swaps | Other L-T Investments | $ | 0.5 | Other Liabilities | $ | — | |||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | — | Other Liabilities | 22.4 | |||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other L-T Investments | — | Other Liabilities | 22.8 | |||||||||||||||||||
Total Not Designated as Hedging Instruments | $ | 0.5 | $ | 45.2 |
Year Ended December 31, 2020 | |||||||||||||||||
Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Total Income and Expense Presented in the Consolidated Statements of Income of Which Hedged Items are Recorded | $ | 2,360.7 | $ | 1,199.1 | $ | 188.2 | |||||||||||
Gain (Loss) on Cash Flow Hedging Relationships | |||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||
Hedged items | 286.1 | 397.7 | 29.2 | ||||||||||||||
Derivatives Designated as Hedging Instruments | 75.9 | 32.0 | 1.7 | ||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||
Hedged items | 12.1 | (0.1) | — | ||||||||||||||
Derivatives Designated as Hedging Instruments | 2.5 | 0.1 | — | ||||||||||||||
Gain (Loss) on Fair Value Hedging Relationships | |||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||
Hedged items | — | (0.6) | 10.1 | ||||||||||||||
Derivatives Designated as Hedging Instruments | — | 0.6 | (0.9) | ||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||
Hedged items | 7.1 | 23.3 | — | ||||||||||||||
Derivatives Designated as Hedging Instruments | 2.8 | (23.3) | — | ||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||
Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Total Income and Expense Presented in the Consolidated Statements of Income of Which Hedged Items are Recorded | $ | 2,435.3 | $ | (23.2) | $ | 177.4 | |||||||||||
Gain (Loss) on Cash Flow Hedging Relationships | |||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||
Hedged items | 294.6 | (1.6) | 30.4 | ||||||||||||||
Derivatives Designated as Hedging Instruments | 74.3 | 9.3 | 2.4 | ||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||
Hedged items | 14.8 | 1.4 | — | ||||||||||||||
Derivatives Designated as Hedging Instruments | (2.0) | (1.4) | — | ||||||||||||||
Gain (Loss) on Fair Value Hedging Relationships | |||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||
Hedged items | — | (4.5) | 14.3 | ||||||||||||||
Derivatives Designated as Hedging Instruments | — | 4.5 | 2.5 | ||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||
Hedged items | 2.9 | 3.8 | — | ||||||||||||||
Derivatives Designated as Hedging Instruments | 1.9 | (3.8) | — | ||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||
Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Total Income and Expense Presented in the Consolidated Statements of Income of Which Hedged Items are Recorded | $ | 2,453.7 | $ | (39.5) | $ | 167.3 | |||||||||||
Gain (Loss) on Cash Flow Hedging Relationships | |||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||
Hedged items | 310.3 | 0.1 | 38.4 | ||||||||||||||
Derivatives Designated as Hedging Instruments | 67.1 | (0.3) | 2.3 | ||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||
Hedged items | 18.1 | 1.5 | — | ||||||||||||||
Derivatives Designated as Hedging Instruments | (0.9) | (1.5) | — | ||||||||||||||
Gain (Loss) on Fair Value Hedging Relationships | |||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||
Hedged items | 1.0 | 0.1 | 14.3 | ||||||||||||||
Derivatives Designated as Hedging Instruments | (0.5) | (0.1) | 1.8 | ||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||
Hedged items | 0.6 | (2.7) | — | ||||||||||||||
Derivatives Designated as Hedging Instruments | 0.5 | 2.7 | — | ||||||||||||||
Year Ended December 31 | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | ||||||||||||||||||||
Interest Rate Swaps and Forwards | $ | — | $ | (0.1) | $ | (0.1) | ||||||||||||||
Foreign Exchange Contracts | (5.4) | (6.1) | 16.9 | |||||||||||||||||
Total | $ | (5.4) | $ | (6.2) | $ | 16.8 | ||||||||||||||
Year Ended December 31 | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||||||
Credit Default Swaps | $ | (0.5) | $ | (0.1) | $ | (0.3) | ||||||||||||||
Interest Rate Swaps | — | — | (0.3) | |||||||||||||||||
Foreign Exchange Contracts | (2.0) | — | 0.9 | |||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (17.0) | 8.3 | (15.2) | |||||||||||||||||
Total | $ | (19.5) | $ | 8.2 | $ | (14.9) |
Net Unrealized Gain (Loss) on Securities | Net Gain on Hedges | Foreign Currency Translation Adjustment | Unrecognized Pension and Postretirement Benefit Costs | Total | ||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||
Balances at December 31, 2017 | $ | 607.8 | $ | 282.3 | $ | (254.5) | $ | (508.1) | $ | 127.5 | ||||||||||||||||||||||
Adjustment to Adopt Accounting Standard Update - Note 1 | (17.5) | — | — | — | (17.5) | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | (920.3) | 16.8 | (50.7) | 43.6 | (910.6) | |||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 17.6 | (48.5) | — | 17.3 | (13.6) | |||||||||||||||||||||||||||
Net Other Comprehensive Income (Loss) | (902.7) | (31.7) | (50.7) | 60.9 | (924.2) | |||||||||||||||||||||||||||
Balances at December 31, 2018 | (312.4) | 250.6 | (305.2) | (447.2) | (814.2) | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 894.1 | (0.2) | 23.6 | (52.0) | 865.5 | |||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 34.2 | (62.6) | — | 14.4 | (14.0) | |||||||||||||||||||||||||||
Net Other Comprehensive Income (Loss) | 928.3 | (62.8) | 23.6 | (37.6) | 851.5 | |||||||||||||||||||||||||||
Balances at December 31, 2019 | 615.9 | 187.8 | (281.6) | (484.8) | 37.3 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 405.6 | (5.7) | 20.3 | (60.8) | 359.4 | |||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 46.2 | (84.3) | — | 15.6 | (22.5) | |||||||||||||||||||||||||||
Net Other Comprehensive Income (Loss) | 451.8 | (90.0) | 20.3 | (45.2) | 336.9 | |||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | 1,067.7 | $ | 97.8 | $ | (261.3) | $ | (530.0) | $ | 374.2 |
December 31 | January 1 | December 31 | Change for the Year Ended December 31 | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2018 | 2017 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | $ | 7,597.6 | $ | 6,364.4 | $ | 2,736.5 | $ | 5,665.2 | $ | 5,677.3 | $ | 1,233.2 | $ | 3,627.9 | $ | (2,928.7) | ||||||||||||||||||||||||||||||||||
Other Investments | — | — | — | — | 14.4 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Deferred Acquisition Costs | (85.1) | (62.7) | (27.9) | (51.4) | (51.4) | (22.4) | (34.8) | 23.5 | ||||||||||||||||||||||||||||||||||||||||||
Reserves for Future Policy and Contract Benefits | (6,225.6) | (5,803.1) | (3,220.3) | (5,094.7) | (5,094.7) | (422.5) | (2,582.8) | 1,874.4 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance Recoverable | 200.2 | 424.7 | 261.4 | 375.8 | 375.8 | (224.5) | 163.3 | (114.4) | ||||||||||||||||||||||||||||||||||||||||||
Income Tax | (419.4) | (307.4) | (62.1) | (304.6) | (313.6) | (112.0) | (245.3) | 242.5 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,067.7 | $ | 615.9 | $ | (312.4) | $ | 590.3 | $ | 607.8 | $ | 451.8 | $ | 928.3 | $ | (902.7) |
Year Ended December 31 | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Net Unrealized Gain (Loss) on Securities | ||||||||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||||||
Gain (Loss) on Sales on Securities | $ | 1,279.7 | $ | (18.0) | $ | (4.8) | ||||||||||||||
Credit Losses on Fixed Maturity Securities | (53.6) | (25.3) | (17.5) | |||||||||||||||||
Loss on Benefits and Change in Reserves for Future Benefits | (1,284.5) | — | — | |||||||||||||||||
(58.4) | (43.3) | (22.3) | ||||||||||||||||||
Income Tax Benefit | (12.2) | (9.1) | (4.7) | |||||||||||||||||
Total | $ | (46.2) | $ | (34.2) | $ | (17.6) | ||||||||||||||
Net Gain on Hedges | ||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||
Gain on Interest Rate Swaps and Forwards | $ | 74.1 | $ | 73.6 | $ | 65.9 | ||||||||||||||
Gain (Loss) on Foreign Exchange Contracts | 2.0 | 0.8 | (1.1) | |||||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||||||
Gain on Interest Rate Swaps | 32.0 | 8.8 | 0.2 | |||||||||||||||||
Gain (Loss) on Foreign Exchange Contracts | 0.1 | (1.3) | (1.5) | |||||||||||||||||
Interest and Debt Expense | ||||||||||||||||||||
Loss on Interest Rate Swaps | (1.5) | (2.1) | (2.1) | |||||||||||||||||
Loss on Forward | — | (0.5) | — | |||||||||||||||||
106.7 | 79.3 | 61.4 | ||||||||||||||||||
Income Tax Expense | 22.4 | 16.7 | 12.9 | |||||||||||||||||
Total | $ | 84.3 | $ | 62.6 | $ | 48.5 | ||||||||||||||
Unrecognized Pension and Postretirement Benefit Costs | ||||||||||||||||||||
Other Expenses | ||||||||||||||||||||
Amortization of Net Actuarial Loss | $ | (19.8) | $ | (18.6) | $ | (22.3) | ||||||||||||||
Amortization of Prior Service Credit | 0.1 | 0.2 | 0.2 | |||||||||||||||||
Curtailment Gain | (0.1) | — | — | |||||||||||||||||
(19.8) | (18.4) | (22.1) | ||||||||||||||||||
Income Tax Benefit | (4.2) | (4.0) | (4.8) | |||||||||||||||||
Total | $ | (15.6) | $ | (14.4) | $ | (17.3) |
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Balance at January 1 | $ | 23,076.7 | $ | 23,149.0 | $ | 23,222.0 | |||||||||||
Less Reinsurance Recoverable | 2,246.8 | 2,227.3 | 2,182.0 | ||||||||||||||
Net Balance at January 1 | 20,829.9 | 20,921.7 | 21,040.0 | ||||||||||||||
Incurred Related to | |||||||||||||||||
Current Year | 6,327.8 | 6,113.2 | 5,832.3 | ||||||||||||||
Prior Years | |||||||||||||||||
Interest | 997.8 | 1,036.5 | 1,049.8 | ||||||||||||||
All Other Incurred | 878.7 | (274.1) | (106.2) | ||||||||||||||
Foreign Currency | 65.9 | 76.0 | (110.7) | ||||||||||||||
Total Incurred | 8,270.2 | 6,951.6 | 6,665.2 | ||||||||||||||
Paid Related to | |||||||||||||||||
Current Year | (2,727.0) | (2,532.4) | (2,354.7) | ||||||||||||||
Prior Years | (4,430.3) | (4,511.0) | (4,428.8) | ||||||||||||||
Total Paid | (7,157.3) | (7,043.4) | (6,783.5) | ||||||||||||||
Reserves Ceded Pursuant to Reinsurance Transaction | (6,141.5) | — | — | ||||||||||||||
Net Balance at December 31 | 15,801.3 | 20,829.9 | 20,921.7 | ||||||||||||||
Plus Reinsurance Recoverable | 8,378.9 | 2,246.8 | 2,227.3 | ||||||||||||||
Balance at December 31 | $ | 24,180.2 | $ | 23,076.7 | $ | 23,149.0 |
December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Policy and Contract Benefits | $ | 1,855.4 | $ | 1,745.5 | $ | 1,695.7 | |||||||||||
Reserves for Future Policy and Contract Benefits | 49,653.0 | 47,780.1 | 44,841.9 | ||||||||||||||
Total | 51,508.4 | 49,525.6 | 46,537.6 | ||||||||||||||
Less: | |||||||||||||||||
Life Reserves for Future Policy and Contract Benefits | 8,371.7 | 8,435.7 | 8,330.9 | ||||||||||||||
Accident and Health Active Life Reserves | 12,730.9 | 12,210.1 | 11,837.4 | ||||||||||||||
Adjustment Related to Unrealized Investment Gains and Losses | 6,225.6 | 5,803.1 | 3,220.3 | ||||||||||||||
Liability for Unpaid Claims and Claim Adjustment Expenses | $ | 24,180.2 | $ | 23,076.7 | $ | 23,149.0 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Net Income | $ | 171.0 | $ | 281.8 | $ | 104.4 | |||||||||||
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
Change in Net Unrealized Gain on Securities Before Adjustment | 250.2 | 757.0 | (614.2) | ||||||||||||||
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance | (138.2) | (511.7) | 371.7 | ||||||||||||||
Change in Net Gain on Hedges | (23.8) | (17.0) | (8.2) | ||||||||||||||
Change in Foreign Currency Translation Adjustment | (4.3) | 0.2 | (0.6) | ||||||||||||||
Change in Unrecognized Pension and Postretirement Benefit Costs | (34.8) | (9.3) | 17.0 | ||||||||||||||
Total | $ | 220.1 | $ | 501.0 | $ | (129.9) |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Statutory Income Tax | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Net Operating Loss Carryback | (3.8) | — | — | ||||||||||||||
Deemed Repatriation Tax on Foreign Earnings and Profit | — | — | 1.8 | ||||||||||||||
Tax Exempt Income | (0.8) | (0.5) | (1.3) | ||||||||||||||
Tax Credits | (1.3) | (1.1) | (2.4) | ||||||||||||||
Policyholder Reserves | 0.7 | — | (2.4) | ||||||||||||||
Other Items, Net | 1.9 | 1.0 | (0.1) | ||||||||||||||
Effective Tax | 17.7 | % | 20.4 | % | 16.6 | % |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Deferred Tax Asset | |||||||||||
Reserves | $ | 1,279.6 | $ | 1,154.6 | |||||||
Employee Benefits | 218.7 | 201.6 | |||||||||
Other | 52.9 | 19.4 | |||||||||
Gross Deferred Tax Asset | 1,551.2 | 1,375.6 | |||||||||
Less: Valuation Allowance | 14.5 | 28.3 | |||||||||
Net Deferred Tax Asset | 1,536.7 | 1,347.3 | |||||||||
Deferred Tax Liability | |||||||||||
Deferred Acquisition Costs | 185.5 | 115.6 | |||||||||
Fixed Assets | 74.7 | 58.5 | |||||||||
Invested Assets | 1,443.5 | 1,213.7 | |||||||||
Cost of Reinsurance | 180.4 | 10.8 | |||||||||
Other | 68.7 | 44.1 | |||||||||
Gross Deferred Tax Liability | 1,952.8 | 1,442.7 | |||||||||
Net Deferred Tax Asset (Liability) | $ | (416.1) | $ | (95.4) |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Income Before Tax | |||||||||||||||||
Domestic | $ | 924.7 | $ | 1,289.5 | $ | 492.6 | |||||||||||
Foreign | 39.3 | 92.6 | 135.2 | ||||||||||||||
Total | $ | 964.0 | $ | 1,382.1 | $ | 627.8 | |||||||||||
Current Tax Expense (Benefit) | |||||||||||||||||
Federal | $ | (98.4) | $ | 273.6 | $ | 194.6 | |||||||||||
State and Local | 1.5 | 1.3 | (0.6) | ||||||||||||||
Foreign | (19.7) | (0.1) | 33.4 | ||||||||||||||
Total | (116.6) | 274.8 | 227.4 | ||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||
Federal | 250.5 | (9.5) | (114.6) | ||||||||||||||
State and Local | 1.0 | (0.1) | (0.2) | ||||||||||||||
Foreign | 36.1 | 16.6 | (8.2) | ||||||||||||||
Total | 287.6 | 7.0 | (123.0) | ||||||||||||||
Total Tax Expense | $ | 171.0 | $ | 281.8 | $ | 104.4 |
December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Balance at Beginning of Year | $ | 241.0 | $ | 262.2 | $ | 1.4 | |||||||||||
Increases (Decreases) for Tax Positions Related to Prior Years | (21.0) | (21.1) | 261.5 | ||||||||||||||
Lapse of the Applicable Statute of Limitations | (0.3) | (0.1) | (0.7) | ||||||||||||||
Balance at End of Year | 219.7 | 241.0 | 262.2 | ||||||||||||||
Less Tax Attributable to Temporary Items Included Above | (105.9) | (127.1) | (148.2) | ||||||||||||||
Total Unrecognized Tax Benefits That if Recognized Would Affect the Effective Tax Rate | $ | 113.8 | $ | 113.9 | $ | 114.0 |
December 31 | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Interest Rates | Maturities | (in millions of dollars) | |||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||||
Outstanding Principal | |||||||||||||||||||||||
Senior Secured Notes issued 2007 | Variable | 2037 | $ | — | $ | 80.0 | |||||||||||||||||
Senior Notes issued 1998 | 6.750 - 7.250% | 2028 | 335.8 | 335.8 | |||||||||||||||||||
Senior Notes issued 2002 | 7.375% | 2032 | 39.5 | 39.5 | |||||||||||||||||||
Senior Notes issued 2012 and 2016 | 5.750% | 2042 | 500.0 | 500.0 | |||||||||||||||||||
Senior Notes issued 2014 | 4.000% | 2024 | 350.0 | 350.0 | |||||||||||||||||||
Senior Notes issued 2015 | 3.875% | 2025 | 275.0 | 275.0 | |||||||||||||||||||
Senior Notes issued 2019 | 4.000% | 2029 | 400.0 | 400.0 | |||||||||||||||||||
Senior Notes issued 2019 | 4.500% | 2049 | 450.0 | 450.0 | |||||||||||||||||||
Senior Notes issued 2020 | 4.500% | 2025 | 500.0 | — | |||||||||||||||||||
Medium-term Notes issued 1990 - 1996 | 7.000 - 7.190% |
2023 - 2028
|
20.5 | 20.5 | |||||||||||||||||||
Junior Subordinated Debt Securities issued 1998 | 7.405% | 2038 | 203.7 | 203.7 | |||||||||||||||||||
Junior Subordinated Debt Securities issued 2018 | 6.250% | 2058 | 300.0 | 300.0 | |||||||||||||||||||
Fair Value Hedge Adjustment | — | (0.6) | |||||||||||||||||||||
Less: | |||||||||||||||||||||||
Unamortized Net Premium | 6.0 | 8.4 | |||||||||||||||||||||
Unamortized Debt Issuance Costs | (34.8) | (35.4) | |||||||||||||||||||||
Total Long-term Debt | 3,345.7 | 2,926.9 | |||||||||||||||||||||
Short-term Debt | |||||||||||||||||||||||
Outstanding Principal | |||||||||||||||||||||||
Senior Notes issued 2010 | 5.625% | 2020 | — | 400.0 | |||||||||||||||||||
Less Unamortized Debt Issuance Costs | — | (0.3) | |||||||||||||||||||||
Total Short-term Debt | — | 399.7 | |||||||||||||||||||||
Total Debt | $ | 3,345.7 | $ | 3,326.6 |
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||||||||||||||
Benefit Obligation at Beginning of Year | $ | 2,106.9 | $ | 1,933.3 | $ | 256.9 | $ | 211.0 | $ | 127.2 | $ | 125.9 | |||||||||||||||||||||||
Service Cost | 11.0 | 10.9 | — | — | — | — | |||||||||||||||||||||||||||||
Interest Cost | 73.0 | 83.3 | 4.9 | 6.1 | 4.1 | 5.3 | |||||||||||||||||||||||||||||
Plan Participant Contributions | — | — | — | — | 0.1 | 0.2 | |||||||||||||||||||||||||||||
Actuarial (Gain) Loss (1)
|
212.4 | 225.7 | 33.8 | 34.9 | (0.3) | 7.0 | |||||||||||||||||||||||||||||
Benefits and Expenses Paid | (126.1) | (146.3) | (5.1) | (4.8) | (10.6) | (11.2) | |||||||||||||||||||||||||||||
Curtailment Gain | — | — | (0.7) | — | — | — | |||||||||||||||||||||||||||||
Change in Foreign Exchange Rates | — | — | 10.2 | 9.7 | — | — | |||||||||||||||||||||||||||||
Benefit Obligation at End of Year | $ | 2,277.2 | $ | 2,106.9 | $ | 300.0 | $ | 256.9 | $ | 120.5 | $ | 127.2 | |||||||||||||||||||||||
Accumulated Benefit Obligation at December 31 | $ | 2,277.2 | $ | 2,106.9 | $ | 297.5 | $ | 253.1 | N/A | N/A | |||||||||||||||||||||||||
Change in Fair Value of Plan Assets | |||||||||||||||||||||||||||||||||||
Fair Value of Plan Assets at Beginning of Year | $ | 1,600.0 | $ | 1,454.9 | $ | 252.8 | $ | 217.0 | $ | 9.9 | $ | 10.1 | |||||||||||||||||||||||
Actual Return on Plan Assets | 227.9 | 282.7 | 36.4 | 31.0 | 0.1 | 0.2 | |||||||||||||||||||||||||||||
Employer Contributions | 9.1 | 8.7 | — | — | 9.8 | 10.6 | |||||||||||||||||||||||||||||
Plan Participant Contributions | — | — | — | — | 0.1 | 0.2 | |||||||||||||||||||||||||||||
Benefits and Expenses Paid | (126.1) | (146.3) | (5.1) | (4.8) | (10.6) | (11.2) | |||||||||||||||||||||||||||||
Change in Foreign Exchange Rates | — | — | 10.0 | 9.6 | — | — | |||||||||||||||||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 1,710.9 | $ | 1,600.0 | $ | 294.1 | $ | 252.8 | $ | 9.3 | $ | 9.9 | |||||||||||||||||||||||
Underfunded Status | $ | 566.3 | $ | 506.9 | $ | 5.9 | $ | 4.1 | $ | 111.2 | $ | 117.3 |
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Current Liability | $ | 8.0 | $ | 7.7 | $ | — | $ | — | $ | 1.5 | $ | 1.5 | |||||||||||||||||||||||
Noncurrent Liability | 558.3 | 499.2 | 5.9 | 4.1 | 109.7 | 115.8 | |||||||||||||||||||||||||||||
Noncurrent Asset | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Underfunded Status | $ | 566.3 | $ | 506.9 | $ | 5.9 | $ | 4.1 | $ | 111.2 | $ | 117.3 | |||||||||||||||||||||||
Unrecognized Pension and Postretirement Benefit Costs | |||||||||||||||||||||||||||||||||||
Net Actuarial Gain (Loss) | $ | (767.9) | $ | (695.4) | $ | (70.5) | $ | (63.1) | $ | 11.0 | $ | 11.1 | |||||||||||||||||||||||
Prior Service Credit (Cost) | (0.6) | (0.7) | (0.2) | (0.3) | 2.9 | 3.1 | |||||||||||||||||||||||||||||
(768.5) | (696.1) | (70.7) | (63.4) | 13.9 | 14.2 | ||||||||||||||||||||||||||||||
Income Tax | 273.9 | 240.7 | 16.0 | 14.5 | 5.4 | 5.3 | |||||||||||||||||||||||||||||
Total Included in Accumulated Other Comprehensive Income (Loss) | $ | (494.6) | $ | (455.4) | $ | (54.7) | $ | (48.9) | $ | 19.3 | $ | 19.5 |
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) at Beginning of Year | $ | (455.4) | $ | (437.3) | $ | (48.9) | $ | (37.3) | $ | 19.5 | $ | 27.4 | |||||||||||||||||||||||
Net Actuarial Gain (Loss) | |||||||||||||||||||||||||||||||||||
Amortization | 18.7 | 20.2 | 1.1 | 0.9 | — | (2.5) | |||||||||||||||||||||||||||||
All Other Changes | (91.2) | (43.0) | (8.5) | (15.1) | (0.1) | (7.3) | |||||||||||||||||||||||||||||
Prior Service Credit (Cost) | |||||||||||||||||||||||||||||||||||
Amortization | 0.1 | — | — | — | (0.2) | (0.2) | |||||||||||||||||||||||||||||
Curtailment Gain | — | — | 0.1 | — | — | — | |||||||||||||||||||||||||||||
Change in Income Tax | 33.2 | 4.7 | 1.5 | 2.6 | 0.1 | 2.1 | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) at End of Year | $ | (494.6) | $ | (455.4) | $ | (54.7) | $ | (48.9) | $ | 19.3 | $ | 19.5 |
Asset Class | Asset Type | Benchmark Indices | ||||||||||||
Equity Securities | Collective funds; Individual holdings | Standard & Poor's 500; Russell 2000 Value and Growth; Morgan Stanley Capital International (MSCI) Europe Australasia Far East Small Cap; MSCI Emerging Markets; MSCI World and World Minimum Volatility; FTSE RAFI All-World Low Volatility | ||||||||||||
Fixed Income | Individual holdings | Bloomberg Barclays Long Government/Corporate Index | ||||||||||||
Opportunistic Credits | Collective fund | Custom Index | ||||||||||||
Real Estate | Collective fund | National Council of Real Estate Investment Fund Open-end Diversified Core Equity Index | ||||||||||||
Alternative Investments (Hedge and Private Equity) | Fund of funds; Direct investments | Hedge Fund Research Institute Fund of Funds; Custom Index |
December 31, 2020 | |||||||||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
NAV as a Practical
Expedient |
Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Invested Assets | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
U.S. Large Cap | $ | — | $ | — | $ | — | $ | 112.6 | $ | 112.6 | |||||||||||||||||||
U.S. Small Cap | 25.8 | — | — | 33.2 | 59.0 | ||||||||||||||||||||||||
Global | — | — | — | 307.9 | 307.9 | ||||||||||||||||||||||||
International | — | — | — | 31.6 | 31.6 | ||||||||||||||||||||||||
Emerging Markets | — | — | — | 62.3 | 62.3 | ||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||
U.S. Government and Agencies | 227.8 | — | — | — | 227.8 | ||||||||||||||||||||||||
Corporate | — | 445.6 | — | — | 445.6 | ||||||||||||||||||||||||
State and Municipal Securities | — | 3.7 | — | — | 3.7 | ||||||||||||||||||||||||
Opportunistic Credits | — | — | — | 200.4 | 200.4 | ||||||||||||||||||||||||
Real Estate | — | — | — | 108.9 | 108.9 | ||||||||||||||||||||||||
Alternative Investments: | |||||||||||||||||||||||||||||
Private Equity Direct Investments | — | — | — | 62.1 | 62.1 | ||||||||||||||||||||||||
Private Equity Funds of Funds | — | — | — | 39.2 | 39.2 | ||||||||||||||||||||||||
Cash Equivalents | 46.3 | — | — | — | 46.3 | ||||||||||||||||||||||||
Total Invested Assets | $ | 299.9 | $ | 449.3 | $ | — | $ | 958.2 | $ | 1,707.4 |
December 31, 2019 | |||||||||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
NAV as a Practical
Expedient |
Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Invested Assets | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
U.S. Large Cap | $ | — | $ | — | $ | — | $ | 95.2 | $ | 95.2 | |||||||||||||||||||
U.S. Small Cap | 23.0 | — | — | 24.8 | 47.8 | ||||||||||||||||||||||||
Global | — | — | — | 299.1 | 299.1 | ||||||||||||||||||||||||
International | — | — | — | 28.3 | 28.3 | ||||||||||||||||||||||||
Emerging Markets | — | — | — | 50.4 | 50.4 | ||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||
U.S. Government and Agencies | 199.0 | — | — | — | 199.0 | ||||||||||||||||||||||||
Corporate | — | 391.1 | — | — | 391.1 | ||||||||||||||||||||||||
State and Municipal Securities | — | 2.5 | — | — | 2.5 | ||||||||||||||||||||||||
Opportunistic Credits | — | — | — | 196.5 | 196.5 | ||||||||||||||||||||||||
Real Estate | — | — | — | 108.4 | 108.4 | ||||||||||||||||||||||||
Alternative Investments: | |||||||||||||||||||||||||||||
Private Equity Direct Investments | — | — | — | 57.7 | 57.7 | ||||||||||||||||||||||||
Private Equity Funds of Funds | — | — | — | 38.4 | 38.4 | ||||||||||||||||||||||||
Cash Equivalents | 82.4 | — | — | — | 82.4 | ||||||||||||||||||||||||
Total Invested Assets | $ | 304.4 | $ | 393.6 | $ | — | $ | 898.8 | $ | 1,596.8 |
December 31, 2020 | |||||||||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
NAV as a Practical
Expedient |
Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||
Diversified Growth Assets | $ | — | $ | — | $ | — | $ | 176.0 | $ | 176.0 | |||||||||||||||||||
Fixed Interest and Index-linked Securities | 116.8 | — | — | — | 116.8 | ||||||||||||||||||||||||
Cash Equivalents | 1.3 | — | — | — | 1.3 | ||||||||||||||||||||||||
Total Plan Assets | $ | 118.1 | $ | — | $ | — | $ | 176.0 | $ | 294.1 |
December 31, 2019 | |||||||||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
NAV as a Practical
Expedient |
Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||
Diversified Growth Assets | $ | — | $ | — | $ | — | $ | 163.0 | $ | 163.0 | |||||||||||||||||||
Fixed Interest and Index-linked Securities | 89.6 | — | — | — | 89.6 | ||||||||||||||||||||||||
Cash Equivalents | 0.2 | — | — | — | 0.2 | ||||||||||||||||||||||||
Total Plan Assets | $ | 89.8 | $ | — | $ | — | $ | 163.0 | $ | 252.8 |
December 31, 2020 | |||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Total | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Life Insurance Contracts | $ | — | $ | — | $ | 9.3 | $ | 9.3 |
December 31, 2019 | |||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Total | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Life Insurance Contracts | $ | — | $ | — | $ | 9.9 | $ | 9.9 |
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
Beginning
of Year |
Actual Return on Plan Assets | Contributions | Net Benefits and Expenses Paid | End of Year | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Life Insurance Contracts | $ | 9.9 | $ | 0.1 | $ | 9.9 | $ | (10.6) | $ | 9.3 |
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
Beginning
of Year |
Actual Return on Plan Assets | Contributions | Net Benefits and Expenses Paid | End of Year | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Life Insurance Contracts | $ | 10.1 | $ | 0.2 | $ | 10.8 | $ | (11.2) | $ | 9.9 |
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Benefit Obligations | |||||||||||||||||||||||||||||||||||
Discount Rate | 2.90 | % | 3.60 | % | 1.40 | % | 2.00 | % | 2.60 | % | 3.40 | % | |||||||||||||||||||||||
Rate of Compensation Increase | N/A | N/A | 2.80 | % | 2.90 | % | N/A | N/A | |||||||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||
Discount Rate | 3.60 | % | 4.40 | % | 2.00 | % | 2.90 | % | 3.40 | % | 4.40 | % | |||||||||||||||||||||||
Expected Return on Plan Assets | 7.00 | % | 7.00 | % | 4.10 | % | 4.30 | % | 5.75 | % | 5.75 | % | |||||||||||||||||||||||
Rate of Compensation Increase | N/A | N/A | 2.90 | % | 3.70 | % | N/A | N/A |
Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Service Cost | $ | 11.0 | $ | 10.9 | $ | 9.1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
Interest Cost | 73.0 | 83.3 | 79.8 | 4.9 | 6.1 | 5.9 | 4.1 | 5.3 | 4.9 | ||||||||||||||||||||||||||||||||||||||||||||
Expected Return on Plan Assets | (106.7) | (99.4) | (104.5) | (9.5) | (8.9) | (8.9) | (0.5) | (0.6) | (0.6) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Actuarial Loss (Gain) | 18.7 | 20.2 | 21.7 | 1.1 | 0.9 | 0.6 | — | (2.5) | — | ||||||||||||||||||||||||||||||||||||||||||||
Prior Service Credit | 0.1 | — | — | — | — | — | (0.2) | (0.2) | (0.2) | ||||||||||||||||||||||||||||||||||||||||||||
Curtailment Gain | — | — | — | 0.1 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total Net Periodic Benefit Cost | $ | (3.9) | $ | 15.0 | $ | 6.1 | $ | (3.4) | $ | (1.9) | $ | (2.4) | $ | 3.4 | $ | 2.0 | $ | 4.1 |
Pension Benefits | |||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Year | Gross | Subsidy Payments | Net | ||||||||||||||||||||||||||
2021 | $ | 75.0 | $ | 6.1 | $ | 11.1 | $ | 0.1 | $ | 11.0 | |||||||||||||||||||
2022 | 78.4 | 6.1 | 10.5 | 0.1 | 10.4 | ||||||||||||||||||||||||
2023 | 82.2 | 6.5 | 10.0 | 0.1 | 9.9 | ||||||||||||||||||||||||
2024 | 86.1 | 7.0 | 9.5 | 0.1 | 9.4 | ||||||||||||||||||||||||
2025 | 90.1 | 7.2 | 9.0 | 0.1 | 8.9 | ||||||||||||||||||||||||
2026-2030 | 514.9 | 42.3 | 38.3 | 0.2 | 38.1 | ||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars, except share data) | |||||||||||||||||
Numerator | |||||||||||||||||
Net Income | $ | 793.0 | $ | 1,100.3 | $ | 523.4 | |||||||||||
Denominator (000s) | |||||||||||||||||
Weighted Average Common Shares - Basic | 203,642.0 | 209,728.9 | 219,635.6 | ||||||||||||||
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 113.3 | 125.5 | 423.0 | ||||||||||||||
Weighted Average Common Shares - Assuming Dilution | 203,755.3 | 209,854.4 | 220,058.6 | ||||||||||||||
Net Income Per Common Share | |||||||||||||||||
Basic | $ | 3.89 | $ | 5.25 | $ | 2.38 | |||||||||||
Assuming Dilution | $ | 3.89 | $ | 5.24 | $ | 2.38 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||
Shares Repurchased | — | 12.3 | 8.7 | ||||||||||||||
Cost of Shares Repurchased (1) | $ | — | $ | 400.4 | $ | 350.7 |
Weighted Average | |||||||||||
Shares | Grant Date | ||||||||||
(000s) | Fair Value | ||||||||||
Outstanding at December 31, 2019 | — | $ | — | ||||||||
Granted | 321 | 18.78 | |||||||||
Outstanding at December 31, 2020 | 321 | 18.78 |
Weighted Average | |||||||||||
Shares | Grant Date | ||||||||||
(000s) | Fair Value | ||||||||||
Outstanding at December 31, 2019 | 337 | $ | 44.11 | ||||||||
Granted | 323 | 23.49 | |||||||||
Vested | (135) | 48.20 | |||||||||
Forfeited | (8) | 35.81 | |||||||||
Outstanding at December 31, 2020 | 517 | 30.31 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Expected Volatility (based on our and our peer group historical daily stock prices) | 23 | % | 23 | % | 24 | % | |||||||||||
Expected Life (equals the performance period) | 3 years | 3 years | 3 years | ||||||||||||||
Risk Free Interest Rate (based on U.S. Treasury yields at the date of grant) | 0.85 | % | 2.53 | % | 2.32 | % |
Weighted Average | |||||||||||
Shares | Grant Date | ||||||||||
(000s) | Fair Value | ||||||||||
Outstanding at December 31, 2019 | 1,044 | $ | 41.06 | ||||||||
Granted | 1,262 | 22.71 | |||||||||
Vested | (626) | 40.11 | |||||||||
Forfeited | (87) | 28.75 | |||||||||
Outstanding at December 31, 2020 | 1,593 | 27.57 |
Weighted Average | |||||||||||
Shares | Grant Date | ||||||||||
(000s) | Fair Value | ||||||||||
Outstanding at December 31, 2019 | — | $ | — | ||||||||
Granted | 68 | 22.94 | |||||||||
Outstanding at December 31, 2020 | 68 | 22.94 |
Remaining | Intrinsic | ||||||||||||||||||||||
Shares | Weighted Average | Contractual Term | Value | ||||||||||||||||||||
(000s) | Exercise Price | (in years) | (in millions) | ||||||||||||||||||||
Outstanding at December 31, 2019 | 74 | $ | 24.09 | ||||||||||||||||||||
Exercised | (13) | 23.35 | |||||||||||||||||||||
Forfeited | (21) | 24.25 | |||||||||||||||||||||
Outstanding at December 31, 2020 | 40 | 24.25 | 0.1 | $ | — | ||||||||||||||||||
Exercisable at December 31, 2020 | 40 | $ | 24.25 | 0.1 | $ | — |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Performance Share Units | $ | 5.6 | $ | 5.0 | $ | 6.8 | |||||||||||
Restricted Stock Units and Cash-Settled Restricted Stock Units | 23.9 | 21.0 | 19.0 | ||||||||||||||
Stock Success Units | 0.4 | — | — | ||||||||||||||
Other | 0.5 | 0.6 | 0.5 | ||||||||||||||
Total Compensation Expense, Before Income Tax | $ | 30.4 | $ | 26.6 | $ | 26.3 | |||||||||||
Total Compensation Expense, Net of Income Tax | $ | 26.1 | $ | 22.7 | $ | 20.9 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Direct Premium Income | $ | 9,621.9 | $ | 9,576.3 | $ | 9,171.1 | |||||||||||
Reinsurance Assumed | 94.1 | 116.5 | 142.6 | ||||||||||||||
Reinsurance Ceded | (337.9) | (327.2) | (327.6) | ||||||||||||||
Net Premium Income | $ | 9,378.1 | $ | 9,365.6 | $ | 8,986.1 | |||||||||||
Ceded Benefits and Change in Reserves for Future Benefits | $ | 628.8 | $ | 650.1 | $ | 667.2 |
Year Ended December 31 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Unum US | |||||||||||||||||||||||||||||||||||
Group Disability | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | $ | 1,828.5 | $ | 1,823.1 | $ | 1,766.2 | |||||||||||||||||||||||||||||
Group Short-term Disability | 799.2 | 768.8 | 706.3 | ||||||||||||||||||||||||||||||||
Group Life and Accidental Death & Dismemberment | |||||||||||||||||||||||||||||||||||
Group Life | 1,640.5 | 1,662.0 | 1,583.7 | ||||||||||||||||||||||||||||||||
Accidental Death & Dismemberment | 163.9 | 165.7 | 156.3 | ||||||||||||||||||||||||||||||||
Supplemental and Voluntary | |||||||||||||||||||||||||||||||||||
Individual Disability | 456.0 | 440.7 | 425.4 | ||||||||||||||||||||||||||||||||
Voluntary Benefits | 875.2 | 910.2 | 895.7 | ||||||||||||||||||||||||||||||||
Dental and Vision | 255.6 | 246.1 | 202.8 | ||||||||||||||||||||||||||||||||
6,018.9 | 6,016.6 | 5,736.4 | |||||||||||||||||||||||||||||||||
Unum International | |||||||||||||||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | 364.9 | 353.4 | 358.9 | ||||||||||||||||||||||||||||||||
Group Life | 108.5 | 115.7 | 110.8 | ||||||||||||||||||||||||||||||||
Supplemental | 99.8 | 89.5 | 81.7 | ||||||||||||||||||||||||||||||||
Unum Poland | 79.6 | 71.9 | 17.4 | ||||||||||||||||||||||||||||||||
652.8 | 630.5 | 568.8 | |||||||||||||||||||||||||||||||||
Colonial Life | |||||||||||||||||||||||||||||||||||
Accident, Sickness, and Disability | 975.1 | 973.4 | 929.3 | ||||||||||||||||||||||||||||||||
Life | 376.4 | 351.6 | 328.4 | ||||||||||||||||||||||||||||||||
Cancer and Critical Illness | 360.5 | 360.0 | 346.1 | ||||||||||||||||||||||||||||||||
1,712.0 | 1,685.0 | 1,603.8 | |||||||||||||||||||||||||||||||||
Closed Block | |||||||||||||||||||||||||||||||||||
Long-term Care | 666.9 | 651.6 | 648.3 | ||||||||||||||||||||||||||||||||
Individual Disability | 319.6 | 374.3 | 420.8 | ||||||||||||||||||||||||||||||||
All Other | 7.9 | 7.6 | 8.0 | ||||||||||||||||||||||||||||||||
994.4 | 1,033.5 | 1,077.1 | |||||||||||||||||||||||||||||||||
Total Premium Income | $ | 9,378.1 | $ | 9,365.6 | $ | 8,986.1 |
Unum US | Unum International | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Premium Income | $ | 6,018.9 | $ | 652.8 | $ | 1,712.0 | $ | 994.4 | $ | — | $ | 9,378.1 | |||||||||||||||||||||||
Net Investment Income | 720.3 | 104.6 | 155.7 | 1,370.3 | 9.8 | 2,360.7 | |||||||||||||||||||||||||||||
Other Income | 154.9 | 0.5 | 1.1 | 66.6 | 1.1 | 224.2 | |||||||||||||||||||||||||||||
Adjusted Operating Revenue | $ | 6,894.1 | $ | 757.9 | $ | 1,868.8 | $ | 2,431.3 | $ | 10.9 | $ | 11,963.0 | |||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 825.4 | $ | 76.6 | $ | 335.4 | $ | 241.4 | $ | (200.8) | $ | 1,278.0 | |||||||||||||||||||||||
Interest and Debt Expense | $ | — | $ | — | $ | — | $ | 3.1 | $ | 185.1 | $ | 188.2 | |||||||||||||||||||||||
Depreciation and Amortization | $ | 421.7 | $ | 20.1 | $ | 273.9 | $ | 5.9 | $ | 0.7 | $ | 722.3 | |||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
Premium Income | $ | 6,016.6 | $ | 630.5 | $ | 1,685.0 | $ | 1,033.5 | $ | — | $ | 9,365.6 | |||||||||||||||||||||||
Net Investment Income | 739.4 | 122.5 | 148.0 | 1,404.9 | 20.5 | 2,435.3 | |||||||||||||||||||||||||||||
Other Income | 142.8 | 0.6 | 3.4 | 71.3 | 3.1 | 221.2 | |||||||||||||||||||||||||||||
Adjusted Operating Revenue | $ | 6,898.8 | $ | 753.6 | $ | 1,836.4 | $ | 2,509.7 | $ | 23.6 | $ | 12,022.1 | |||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 1,031.1 | $ | 107.9 | $ | 344.5 | $ | 137.7 | $ | (188.6) | $ | 1,432.6 | |||||||||||||||||||||||
Interest and Debt Expense | $ | — | $ | — | $ | — | $ | 5.3 | $ | 172.1 | $ | 177.4 | |||||||||||||||||||||||
Depreciation and Amortization | $ | 422.8 | $ | 18.7 | $ | 276.6 | $ | 7.7 | $ | 1.7 | $ | 727.5 | |||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||
Premium Income | $ | 5,736.4 | $ | 568.8 | $ | 1,603.8 | $ | 1,077.1 | $ | — | $ | 8,986.1 | |||||||||||||||||||||||
Net Investment Income | 778.7 | 117.2 | 151.2 | 1,377.1 | 29.5 | 2,453.7 | |||||||||||||||||||||||||||||
Other Income | 118.5 | 0.4 | 1.2 | 75.4 | 2.7 | 198.2 | |||||||||||||||||||||||||||||
Adjusted Operating Revenue | $ | 6,633.6 | $ | 686.4 | $ | 1,756.2 | $ | 2,529.6 | $ | 32.2 | $ | 11,638.0 | |||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 1,014.6 | $ | 113.9 | $ | 335.2 | $ | 125.5 | $ | (171.1) | $ | 1,418.1 | |||||||||||||||||||||||
Interest and Debt Expense | $ | — | $ | — | $ | — | $ | 6.9 | $ | 160.4 | $ | 167.3 | |||||||||||||||||||||||
Depreciation and Amortization | $ | 389.6 | $ | 17.6 | $ | 257.3 | $ | 8.3 | $ | 1.0 | $ | 673.8 |
Unum | Colonial | ||||||||||||||||||||||
Unum US | International | Life | Total | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Deferred Acquisition Costs | |||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Beginning of Year | $ | 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 | |||||||||||||||||||
End of Year | $ | 1,168.7 | $ | 32.0 | $ | 1,071.9 | $ | 2,272.6 | |||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
Beginning of Year | $ | 1,239.4 | $ | 20.0 | $ | 1,050.0 | $ | 2,309.4 | |||||||||||||||
Capitalization | 334.5 | 12.8 | 311.3 | 658.6 | |||||||||||||||||||
Amortization | (344.0) | (7.1) | (258.8) | (609.9) | |||||||||||||||||||
Adjustment Related to Unrealized Investment Gains and Losses | (6.9) | — | (27.9) | (34.8) | |||||||||||||||||||
Foreign Currency | — | 0.7 | — | 0.7 | |||||||||||||||||||
End of Year | $ | 1,223.0 | $ | 26.4 | $ | 1,074.6 | $ | 2,324.0 | |||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||
Beginning of Year | $ | 1,205.4 | $ | 21.3 | $ | 957.9 | $ | 2,184.6 | |||||||||||||||
Capitalization | 344.0 | 8.1 | 315.9 | 668.0 | |||||||||||||||||||
Amortization | (315.1) | (8.2) | (242.2) | (565.5) | |||||||||||||||||||
Adjustment Related to Unrealized Investment Gains and Losses | 5.1 | — | 18.4 | 23.5 | |||||||||||||||||||
Foreign Currency | — | (1.2) | — | (1.2) | |||||||||||||||||||
End of Year | $ | 1,239.4 | $ | 20.0 | $ | 1,050.0 | $ | 2,309.4 |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Assets | |||||||||||
Unum US | $ | 19,034.2 | $ | 18,586.3 | |||||||
Unum International | 4,206.2 | 3,869.1 | |||||||||
Colonial Life | 4,864.3 | 4,629.0 | |||||||||
Closed Block | 38,187.2 | 37,008.7 | |||||||||
Corporate | 4,333.9 | 2,920.3 | |||||||||
Total Assets | $ | 70,625.8 | $ | 67,013.4 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Total Revenue | $ | 13,162.1 | $ | 11,998.9 | $ | 11,598.5 | |||||||||||
Excluding: | |||||||||||||||||
Net Realized Investment Gain (Loss) | 1,199.1 | (23.2) | (39.5) | ||||||||||||||
Adjusted Operating Revenue | $ | 11,963.0 | $ | 12,022.1 | $ | 11,638.0 | |||||||||||
Income Before Income Tax | $ | 964.0 | $ | 1,382.1 | $ | 627.8 | |||||||||||
Excluding: | |||||||||||||||||
Net Realized Investment Gains and Losses | |||||||||||||||||
Net Realized Investment Gain Related to Reinsurance Transaction | 1,302.3 | — | — | ||||||||||||||
Net Realized Investment Loss, Other | (103.2) | (23.2) | (39.5) | ||||||||||||||
Total Net Realized Investment Gain (Loss) | 1,199.1 | (23.2) | (39.5) | ||||||||||||||
Items Related to Closed Block Individual Disability Reinsurance Transaction | |||||||||||||||||
Change in Benefit Reserves and Transaction Costs | (1,305.5) | — | — | ||||||||||||||
Amortization of the Cost of Reinsurance | (2.6) | — | — | ||||||||||||||
Total Items Related to Closed Block Individual Disability Reinsurance Transaction | (1,308.1) | — | — | ||||||||||||||
Long-term Care Reserve Increase | (151.5) | — | (750.8) | ||||||||||||||
Group Pension Reserve Increase | (17.5) | — | — | ||||||||||||||
Impairment Loss on ROU Asset | (12.7) | — | — | ||||||||||||||
Costs Related to Organizational Design Update | (23.3) | — | — | ||||||||||||||
Costs Related to Early Retirement of Debt | — | (27.3) | — | ||||||||||||||
Adjusted Operating Income | $ | 1,278.0 | $ | 1,432.6 | $ | 1,418.1 |
Year Ended December 31 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Lease Cost | |||||||||||
Operating Lease Cost | $ | 48.6 | $ | 29.4 | |||||||
Sublease Income | (1.3) | (1.9) | |||||||||
Total Lease Cost | $ | 47.3 | $ | 27.5 | |||||||
Other Information | |||||||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | $ | 30.8 | $ | 28.9 | |||||||
Weighted-Average Remaining Lease Term | 6 years | 7 years | |||||||||
Weighted-Average Discount Rate | 4.37 | % | 4.60 | % |
2021 | $ | 25.4 | ||||||
2022 | 22.8 | |||||||
2023 | 16.5 | |||||||
2024 | 12.7 | |||||||
2025 | 9.8 | |||||||
2026 and Thereafter | 34.4 | |||||||
Total | 121.6 | |||||||
Less Imputed Interest | 15.7 | |||||||
Lease Liability | $ | 105.9 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Combined Net Income (Loss) | |||||||||||||||||
Traditional U.S. Life Insurance Subsidiaries | $ | 646.8 | $ | 982.1 | $ | 953.0 | |||||||||||
Captive Reinsurers | $ | (201.0) | $ | (122.5) | $ | (109.6) | |||||||||||
Combined Net Gain (Loss) from Operations | |||||||||||||||||
Traditional U.S. Life Insurance Subsidiaries | $ | 726.2 | $ | 1,027.2 | $ | 959.8 | |||||||||||
Captive Reinsurers | $ | (149.4) | $ | (108.4) | $ | (110.9) |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Combined Capital and Surplus | |||||||||||
Traditional U.S. Life Insurance Subsidiaries | $ | 3,875.0 | $ | 3,644.4 | |||||||
Captive Reinsurers | $ | 2,088.0 | $ | 1,908.3 |
2020 | |||||||||||||||||||||||
4th
|
3rd
|
2nd
|
1st
|
||||||||||||||||||||
(in millions of dollars, except share data) | |||||||||||||||||||||||
Premium Income | $ | 2,319.9 | $ | 2,318.1 | $ | 2,368.7 | $ | 2,371.4 | |||||||||||||||
Net Investment Income | 593.5 | 613.2 | 569.0 | 585.0 | |||||||||||||||||||
Net Realized Investment Gain (Loss) | 1,304.9 | 4.4 | 33.8 | (144.0) | |||||||||||||||||||
Total Revenue | 4,273.5 | 2,996.3 | 3,021.2 | 2,871.1 | |||||||||||||||||||
Income Before Income Tax | 124.7 | 299.6 | 337.6 | 202.1 | |||||||||||||||||||
Net Income | 135.4 | 231.1 | 265.5 | 161.0 | |||||||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||
Basic | 0.66 | 1.13 | 1.30 | 0.79 | |||||||||||||||||||
Assuming Dilution | 0.66 | 1.13 | 1.30 | 0.79 |
2019 | |||||||||||||||||||||||
4th
|
3rd
|
2nd
|
1st
|
||||||||||||||||||||
(in millions of dollars, except share data) | |||||||||||||||||||||||
Premium Income | $ | 2,352.6 | $ | 2,331.2 | $ | 2,343.1 | $ | 2,338.7 | |||||||||||||||
Net Investment Income | 616.3 | 599.4 | 624.9 | 594.7 | |||||||||||||||||||
Net Realized Investment Gain (Loss) | 9.2 | (26.2) | (7.3) | 1.1 | |||||||||||||||||||
Total Revenue | 3,034.6 | 2,960.0 | 3,016.7 | 2,987.6 | |||||||||||||||||||
Income Before Income Tax | 377.4 | 299.4 | 352.0 | 353.3 | |||||||||||||||||||
Net Income | 296.2 | 242.0 | 281.2 | 280.9 | |||||||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||
Basic | 1.44 | 1.16 | 1.33 | 1.31 | |||||||||||||||||||
Assuming Dilution | 1.44 | 1.16 | 1.33 | 1.31 |
(a) | (b) | (c) | |||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights |
Weighted average exercise price of outstanding options, warrants and rights (5)
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||||||||
Equity Compensation Plans Approved by Shareholders (1)
|
3,392,436 (3)
|
$24.25 |
12,104,198 (6)
|
||||||||
Equity Compensation Plans Not Approved by Shareholders (2)
|
36,450 (4)
|
N/A |
11,370 (7)
|
||||||||
Total | 3,428,886 | N/A | 12,115,568 |
(a) | List of Documents filed as part of this report: | Page | ||||||||||||
(1) | Financial Statements | |||||||||||||
The following report and consolidated financial statements of Unum Group and Subsidiaries are included in Item 8. | ||||||||||||||
(2) | Financial Statement Schedules | |||||||||||||
I. | ||||||||||||||
II. | ||||||||||||||
III. | ||||||||||||||
IV. | ||||||||||||||
V. | ||||||||||||||
Schedules not referred to have been omitted as inapplicable or because they are not required by Regulation S-X. | ||||||||||||||
(3) | Exhibits | |||||||||||||
Type of Investment |
Cost or Amortized Cost (1)
|
Fair Value | Amount shown on the balance sheet | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||
Bonds | |||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 559.0 | $ | 709.8 | $ | 709.8 | |||||||||||||||||
States, Municipalities, and Political Subdivisions | 3,609.9 | 4,261.2 | 4,261.2 | ||||||||||||||||||||
Foreign Governments | 902.9 | 1,168.2 | 1,168.2 | ||||||||||||||||||||
Public Utilities | 5,486.4 | 6,962.3 | 6,962.3 | ||||||||||||||||||||
Mortgage/Asset-Backed Securities | 1,019.9 | 1,107.7 | 1,107.7 | ||||||||||||||||||||
All Other Corporate Bonds | 24,958.8 | 29,918.6 | 29,918.6 | ||||||||||||||||||||
Redeemable Preferred Stocks | 9.6 | 9.5 | 9.5 | ||||||||||||||||||||
Total Fixed Maturity Securities | 36,546.5 | 44,137.3 | 44,137.3 | ||||||||||||||||||||
Mortgage Loans | 2,445.2 | 2,432.1 | |||||||||||||||||||||
Policy Loans | 3,683.9 | 3,683.9 | |||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||
Derivatives | — | 19.8 | (2) | ||||||||||||||||||||
Perpetual Preferred Equity Securities | 32.6 | 28.3 | (3) | ||||||||||||||||||||
Private Equity Partnerships | 720.9 | 747.5 | (3) | ||||||||||||||||||||
Miscellaneous Long-term Investments | 165.2 | 164.6 | |||||||||||||||||||||
Short-term Investments | 1,470.0 | 1,470.0 | |||||||||||||||||||||
Total Investments | $ | 45,064.3 | $ | 52,683.5 |
December 31 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Assets | |||||||||||
Fixed Maturity Securities - at fair value (amortized cost: $349.5; $122.3)
|
$ | 355.1 | $ | 125.6 | |||||||
Other Long-term Investments | 10.6 | 35.2 | |||||||||
Short-term Investments | 164.5 | 604.4 | |||||||||
Investment in Subsidiaries | 14,122.6 | 12,820.9 | |||||||||
Deferred Income Tax | 158.8 | 122.7 | |||||||||
Other Assets | 496.7 | 488.9 | |||||||||
Total Assets | $ | 15,308.3 | $ | 14,197.7 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Short-term Debt | $ | — | $ | 399.7 | |||||||
Long-term Debt | 3,345.7 | 2,846.9 | |||||||||
Pension and Postretirement Benefits | 677.5 | 624.2 | |||||||||
Other Liabilities | 414.1 | 361.9 | |||||||||
Total Liabilities | 4,437.3 | 4,232.7 | |||||||||
Stockholders' Equity | |||||||||||
Common Stock | 30.7 | 30.6 | |||||||||
Additional Paid-in Capital | 2,376.2 | 2,348.1 | |||||||||
Accumulated Other Comprehensive Income | 374.2 | 37.3 | |||||||||
Retained Earnings | 11,269.6 | 10,728.7 | |||||||||
Treasury Stock | (3,179.7) | (3,179.7) | |||||||||
Total Stockholders' Equity | 10,871.0 | 9,965.0 | |||||||||
Total Liabilities and Stockholders' Equity | $ | 15,308.3 | $ | 14,197.7 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Cash Dividends from Subsidiaries | $ | 974.6 | $ | 1,089.4 | $ | 1,135.4 | |||||||||||
Other Income | 51.7 | 63.9 | 66.6 | ||||||||||||||
Total Revenue | 1,026.3 | 1,153.3 | 1,202.0 | ||||||||||||||
Interest and Debt Expense | 187.1 | 173.2 | 161.4 | ||||||||||||||
Cost Related to Early Retirement of Debt | — | 27.3 | — | ||||||||||||||
Other Expenses | 51.1 | 53.4 | 53.4 | ||||||||||||||
Total Expenses | 238.2 | 253.9 | 214.8 | ||||||||||||||
Income of Parent Company Before Income Tax | 788.1 | 899.4 | 987.2 | ||||||||||||||
Income Tax Benefit | (15.3) | (21.5) | (1.7) | ||||||||||||||
Income of Parent Company | 803.4 | 920.9 | 988.9 | ||||||||||||||
Equity in Undistributed Earnings (Loss) of Subsidiaries | (10.4) | 179.4 | (465.5) | ||||||||||||||
Net Income | 793.0 | 1,100.3 | 523.4 | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 336.9 | 851.5 | (924.2) | ||||||||||||||
Comprehensive Income (Loss) | $ | 1,129.9 | $ | 1,951.8 | $ | (400.8) |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Cash Provided by Operating Activities | $ | 964.0 | $ | 1,000.0 | $ | 1,052.1 | |||||||||||
Cash Flows from Investing Activities | |||||||||||||||||
Proceeds from Maturities of Fixed Maturity Securities | 138.8 | 16.6 | 52.5 | ||||||||||||||
Proceeds from Sales and Maturities of Other Investments | 46.6 | 5.6 | — | ||||||||||||||
Purchase of Fixed Maturity Securities | (384.7) | — | (47.9) | ||||||||||||||
Purchase of Other Investments | (22.0) | — | (22.3) | ||||||||||||||
Net Sales (Purchases) of Short-term Investments | 440.6 | (309.0) | 192.6 | ||||||||||||||
Cash Distributions to Subsidiaries | (965.5) | (389.0) | (530.8) | ||||||||||||||
Net Purchases of Property and Equipment | (81.6) | (85.9) | (73.2) | ||||||||||||||
Acquisition of Business | — | — | (146.1) | ||||||||||||||
Cash Used by Investing Activities | (827.8) | (761.7) | (575.2) | ||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||
Short-term Debt Repayment | (400.0) | — | (200.0) | ||||||||||||||
Issuance of Long-term Debt | 494.1 | 841.9 | 290.7 | ||||||||||||||
Long-term Debt Repayment | — | (433.1) | — | ||||||||||||||
Cost Related to Early Retirement of Debt | — | (25.9) | — | ||||||||||||||
Issuance of Common Stock | 4.4 | 6.1 | 4.6 | ||||||||||||||
Repurchase of Common Stock | — | (400.3) | (356.2) | ||||||||||||||
Dividends Paid to Stockholders | (231.9) | (229.2) | (215.6) | ||||||||||||||
Other, Net | (1.4) | (3.7) | (9.3) | ||||||||||||||
Cash Used by Financing Activities | (134.8) | (244.2) | (485.8) | ||||||||||||||
Increase (Decrease) in Cash | $ | 1.4 | $ | (5.9) | $ | (8.9) |
December 31 | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Interest Rates | Maturities | (in millions of dollars) | |||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||||
Outstanding Principal | |||||||||||||||||||||||
Senior Notes issued 1998 | 6.750 - 7.250% | 2028 | $ | 335.8 | $ | 335.8 | |||||||||||||||||
Senior Notes issued 2002 | 7.375% | 2032 | 39.5 | 39.5 | |||||||||||||||||||
Senior Notes issued 2012 and 2016 | 5.750% | 2042 | 500.0 | 500.0 | |||||||||||||||||||
Senior Notes issued 2014 | 4.000% | 2024 | 350.0 | 350.0 | |||||||||||||||||||
Senior Notes issued 2015 | 3.875% | 2025 | 275.0 | 275.0 | |||||||||||||||||||
Senior Notes issued 2019 | 4.000% | 2029 | 400.0 | 400.0 | |||||||||||||||||||
Senior Notes issued 2019 | 4.500% | 2049 | 450.0 | 450.0 | |||||||||||||||||||
Senior Notes issued 2020 | 4.500% | 2025 | 500.0 | — | |||||||||||||||||||
Medium-term Notes issued 1990 - 1996 | 7.000 - 7.190% | 2023 - 2028 | 20.5 | 20.5 | |||||||||||||||||||
Junior Subordinated Debt Securities issued 1998 | 7.405% | 2038 | 203.7 | 203.7 | |||||||||||||||||||
Junior Subordinated Debt Securities issued 2018 | 6.250% | 2058 | 300.0 | 300.0 | |||||||||||||||||||
Fair Value Hedge Adjustment | — | (0.6) | |||||||||||||||||||||
Less: | |||||||||||||||||||||||
Unamortized Net Premium | 6.0 | 8.4 | |||||||||||||||||||||
Unamortized Debt Issuance Costs | (34.8) | (35.4) | |||||||||||||||||||||
Total Long-term Debt | 3,345.7 | 2,846.9 | |||||||||||||||||||||
Short-term Debt | |||||||||||||||||||||||
Outstanding Principal | |||||||||||||||||||||||
Senior Notes issued 2010 | 5.625% | 2020 | — | 400.0 | |||||||||||||||||||
Less Unamortized Debt Issuance Costs | — | (0.3) | |||||||||||||||||||||
Total Short-term Debt | — | 399.7 | |||||||||||||||||||||
Total Debt | $ | 3,345.7 | $ | 3,246.6 |
Segment | Deferred Acquisition Costs | Reserves for Future Policy Contract Benefits | Unearned Premiums | Policy and Contract Benefits | ||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Unum US | $ | 1,168.7 | $ | 11,681.4 | $ | 44.0 | $ | 1,191.2 | ||||||||||||||||||
Unum International | 32.0 | 2,794.2 | 123.3 | 175.6 | ||||||||||||||||||||||
Colonial Life | 1,071.9 | 2,628.5 | 36.9 | 217.2 | ||||||||||||||||||||||
Closed Block | — | 32,548.9 | 145.1 | 271.4 | ||||||||||||||||||||||
Total | $ | 2,272.6 | $ | 49,653.0 | $ | 349.3 | $ | 1,855.4 | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Unum US | $ | 1,223.0 | $ | 11,367.8 | $ | 46.0 | $ | 1,117.5 | ||||||||||||||||||
Unum International | 26.4 | 2,566.6 | 129.9 | 157.3 | ||||||||||||||||||||||
Colonial Life | 1,074.6 | 2,477.2 | 36.8 | 189.4 | ||||||||||||||||||||||
Closed Block | — | 31,368.5 | 151.2 | 281.3 | ||||||||||||||||||||||
Total | $ | 2,324.0 | $ | 47,780.1 | $ | 363.9 | $ | 1,745.5 |
Segment | Premium Income |
Net Investment Income1
|
Benefits and Change in Reserves for Future Benefits2
|
Amortization of Deferred Acquisition Costs |
All Other Expenses3
|
Premiums Written4
|
||||||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Unum US | $ | 6,018.9 | $ | 720.3 | $ | 4,138.7 | $ | 341.0 | $ | 1,589.0 | $ | 4,088.6 | ||||||||||||||||||||||||||
Unum International | 652.8 | 104.6 | 500.9 | 7.4 | 173.0 | 456.0 | ||||||||||||||||||||||||||||||||
Colonial Life | 1,712.0 | 155.7 | 906.5 | 257.7 | 369.2 | 1,252.4 | ||||||||||||||||||||||||||||||||
Closed Block | 994.4 | 1,370.3 | 3,426.8 | — | 240.2 | 979.3 | ||||||||||||||||||||||||||||||||
Corporate | — | 9.8 | — | — | 247.7 | — | ||||||||||||||||||||||||||||||||
Total | $ | 9,378.1 | $ | 2,360.7 | $ | 8,972.9 | $ | 606.1 | $ | 2,619.1 | ||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Unum US | $ | 6,016.6 | $ | 739.4 | $ | 4,022.1 | $ | 344.0 | $ | 1,501.6 | $ | 4,073.9 | ||||||||||||||||||||||||||
Unum International | 630.5 | 122.5 | 469.8 | 7.1 | 168.8 | 443.7 | ||||||||||||||||||||||||||||||||
Colonial Life | 1,685.0 | 148.0 | 865.0 | 258.8 | 368.1 | 1,249.6 | ||||||||||||||||||||||||||||||||
Closed Block | 1,033.5 | 1,404.9 | 2,139.3 | — | 232.7 | 1,020.8 | ||||||||||||||||||||||||||||||||
Corporate | — | 20.5 | — | — | 239.5 | — | ||||||||||||||||||||||||||||||||
Total | $ | 9,365.6 | $ | 2,435.3 | $ | 7,496.2 | $ | 609.9 | $ | 2,510.7 | ||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
Unum US | $ | 5,736.4 | $ | 778.7 | $ | 3,856.5 | $ | 315.1 | $ | 1,447.4 | $ | 3,873.0 | ||||||||||||||||||||||||||
Unum International | 568.8 | 117.2 | 419.8 | 8.2 | 144.5 | 455.5 | ||||||||||||||||||||||||||||||||
Colonial Life | 1,603.8 | 151.2 | 824.9 | 242.2 | 353.9 | 1,277.3 | ||||||||||||||||||||||||||||||||
Closed Block | 1,077.1 | 1,377.1 | 2,919.2 | — | 235.7 | 1,065.7 | ||||||||||||||||||||||||||||||||
Corporate | — | 29.5 | — | — | 203.3 | — | ||||||||||||||||||||||||||||||||
Total | $ | 8,986.1 | $ | 2,453.7 | $ | 8,020.4 | $ | 565.5 | $ | 2,384.8 |
Gross Amount | Ceded to Other Companies | Assumed from Other Companies | Net Amount | Percentage Amount Assumed to Net | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
Life Insurance in Force | $ | 979,755.7 | $ | 41,550.9 | $ | 896.4 | $ | 939,101.2 | 0.1 | % | |||||||||||||||||||
Premium Income: | |||||||||||||||||||||||||||||
Life Insurance | $ | 2,536.8 | $ | 141.9 | $ | 8.0 | $ | 2,402.9 | 0.3 | % | |||||||||||||||||||
Accident, Health, and Other Insurance | 7,085.1 | 196.0 | 86.1 | 6,975.2 | 1.2 | % | |||||||||||||||||||||||
Total | $ | 9,621.9 | $ | 337.9 | $ | 94.1 | $ | 9,378.1 | 1.0 | % | |||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
Life Insurance in Force | $ | 990,371.0 | $ | 41,669.8 | $ | 1,018.4 | $ | 949,719.6 | 0.1 | % | |||||||||||||||||||
Premium Income: | |||||||||||||||||||||||||||||
Life Insurance | $ | 2,549.7 | $ | 137.2 | $ | 8.2 | $ | 2,420.7 | 0.3 | % | |||||||||||||||||||
Accident, Health, and Other Insurance | 7,026.6 | 190.0 | 108.3 | 6,944.9 | 1.6 | % | |||||||||||||||||||||||
Total | $ | 9,576.3 | $ | 327.2 | $ | 116.5 | $ | 9,365.6 | 1.2 | % | |||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||
Life Insurance in Force | $ | 937,300.8 | $ | 40,902.8 | $ | 1,089.3 | $ | 897,487.3 | 0.1 | % | |||||||||||||||||||
Premium Income: | |||||||||||||||||||||||||||||
Life Insurance | $ | 2,442.1 | $ | 138.2 | $ | 8.7 | $ | 2,312.6 | 0.4 | % | |||||||||||||||||||
Accident, Health, and Other Insurance | 6,729.0 | 189.4 | 133.9 | 6,673.5 | 2.0 | % | |||||||||||||||||||||||
Total | $ | 9,171.1 | $ | 327.6 | $ | 142.6 | $ | 8,986.1 | 1.6 | % |
Description |
Balance at Beginning of Year3
|
Additions Charged to Costs and Expenses |
Additions Charged to Other Accounts1
|
Deductions2
|
Balance at End of Year | |||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||
Real Estate reserve (deducted from other long-term investments) | $ | 0.3 | $ | — | $ | — | $ | 0.3 | $ | — | ||||||||||||||||||||||
Allowance for expected credit losses (deducted from accounts and premiums receivable) | $ | 23.8 | $ | 34.2 | $ | 0.1 | $ | 19.3 | $ | 38.8 | ||||||||||||||||||||||
Allowance for expected credit losses (deducted from reinsurance recoverable) | $ | 1.8 | $ | 10.1 | $ | — | $ | 0.2 | $ | 11.7 | ||||||||||||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Real Estate reserve (deducted from other long-term investments) | $ | 1.5 | $ | — | $ | — | $ | 1.2 | $ | 0.3 | ||||||||||||||||||||||
Allowance for doubtful accounts (deducted from accounts and premiums receivable) | $ | 9.9 | $ | 5.3 | $ | 0.1 | $ | 6.9 | $ | 8.4 | ||||||||||||||||||||||
Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Real Estate reserve (deducted from other long-term investments) | $ | 4.2 | $ | 0.6 | $ | — | $ | 3.3 | $ | 1.5 | ||||||||||||||||||||||
Allowance for doubtful accounts (deducted from accounts and premiums receivable) | $ | 6.4 | $ | 5.6 | $ | — | $ | 2.1 | $ | 9.9 |
(2.1) | |||||||||||
(2.2) | |||||||||||
(2.3) | |||||||||||
(2.4) | |||||||||||
(3.1) | |||||||||||
(3.2)
|
|||||||||||
(4.1)
|
|||||||||||
(4.2)
|
|||||||||||
(4.3)
|
|||||||||||
(4.4)
|
|||||||||||
(4.5)
|
|||||||||||
(4.6)
|
|||||||||||
(4.7)
|
|||||||||||
(4.8)
|
|||||||||||
(4.9)
|
|||||||||||
(4.10)
|
|||||||||||
(4.11) | |||||||||||
(4.12) | |||||||||||
(4.13) | |||||||||||
(10.24)
|
|||||||||||
(10.25)
|
|||||||||||
(10.26)
|
|||||||||||
(10.27)
|
|||||||||||
(10.28)
|
|||||||||||
(10.29)
|
|||||||||||
(10.30)
|
|||||||||||
(10.31)
|
|||||||||||
(10.32)
|
|||||||||||
(10.33)
|
|||||||||||
(10.34)
|
|||||||||||
(10.35)
|
|||||||||||
(10.36)
|
|||||||||||
(10.37)
|
|||||||||||
(10.38)
|
|||||||||||
(10.39)
|
|||||||||||
(10.40)
|
|||||||||||
(10.41)
|
(10.42)
|
|||||||||||
(10.43)
|
|||||||||||
(10.44)
|
|||||||||||
(10.45)
|
|||||||||||
(21)
|
|||||||||||
(23)
|
|||||||||||
(24)
|
|||||||||||
(31.1)
|
|||||||||||
(31.2)
|
|||||||||||
(32.1)
|
|||||||||||
(32.2)
|
|||||||||||
(101)
|
The following financial statements from Unum Group's Annual Report on Form 10-K for the year ended December 31, 2020, filed on February 17, 2021, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, (vi) the Notes to Consolidated Financial Statements, (vii) Financial Statement Schedules.
|
||||||||||
(104)
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||||||||
___________
|
|||||||||||
*
|
Management contract or compensatory plan required to be filed as an exhibit to this form pursuant to Item 15(c) of Form 10-K. | ||||||||||
**
|
Certain confidential information contained in this exhibit has been omitted because it (i) is not material and (ii) would likely cause competitive harm to Unum Group or its subsidiaries if it were to be publicly disclosed.
|
Unum Group | ||||||||
(Registrant) | ||||||||
By: | /s/ Richard P. McKenney | |||||||
Richard P. McKenney | ||||||||
President and Chief Executive Officer | ||||||||
Date: | February 17, 2021 |
Name | Title | Date |
/s/ Richard P. McKenney | President and Chief Executive Officer | February 17, 2021 | ||||||||||||
Richard P. McKenney | and a Director (principal executive officer) | |||||||||||||
/s/ Steven A. Zabel | Executive Vice President, Chief Financial Officer | February 17, 2021 | ||||||||||||
Steven A. Zabel | (principal financial officer) | |||||||||||||
/s/ Cherie A. Pashley | Senior Vice President, Chief Accounting Officer | February 17, 2021 | ||||||||||||
Cherie A. Pashley | (principal accounting officer) |
Name | Title | Date | ||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Theodore H. Bunting, Jr. | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Susan L. Cross | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Susan D. DeVore | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Joseph J. Echevarria | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Cynthia L. Egan | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Kevin T. Kabat | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Timothy F. Keaney | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Gloria C. Larson | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Ronald P. O'Hanley | ||||||||||||||
* | Director | February 17, 2021 | ||||||||||||
Francis J. Shammo | ||||||||||||||
* By: /s/ J. Paul Jullienne | February 17, 2021 | |||||||||||||
J. Paul Jullienne | ||||||||||||||
Attorney-in-Fact |
UNUM GROUP | ||
By /s/ Rob Hecker
|
||
Its Rob Hecker
|
UNUM GROUP | ||
By /s/ Rob Hecker
|
||
Title: VP, Global Total Rewards
|
UNUM GROUP | ||
By /s/ Rob Hecker
|
||
Title: VP, Global Total Rewards
|
Vesting Dates
(Anniversaries of Grant Date)
|
Percentage of Total Grant Vesting | ||||
First Anniversary | 33% | ||||
Second Anniversary | 33% | ||||
Third Anniversary | 34% |
Date: [Acceptance Date]
|
EMPLOYEE: [Participant Name]
|
||||||||||
[Electronic Signature] | |||||||||||
UNUM GROUP | |||||||||||
By: | |||||||||||
[Authorized Signature] | |||||||||||
[Name] | |||||||||||
[Title] |
Vesting Dates
(Anniversaries of Grant Date)
|
Percentage of Total Grant Vesting | ||||
First Anniversary | 33% | ||||
Second Anniversary | 33% | ||||
Third Anniversary | 34% |
Date: [Acceptance Date]
|
EMPLOYEE: [Participant Name]
|
||||||||||
[Electronic Signature] | |||||||||||
UNUM GROUP | |||||||||||
By: | |||||||||||
[Authorized Signature] | |||||||||||
[Name] | |||||||||||
[Title] |
Subsidiary Name | State or Jurisdiction of Incorporation | |||||||
AlwaysCare Benefits, Inc. | Louisiana | |||||||
Claims Services International Limited | England and Wales | |||||||
Colonial Life & Accident Insurance Company | South Carolina | |||||||
Duncanson & Holt Canada Ltd. | Canada | |||||||
Duncanson & Holt Europe Ltd. | England and Wales | |||||||
Duncanson & Holt, Inc. | New York | |||||||
Fairwind Insurance Company | Vermont | |||||||
First Look Vision Network, L.L.C. | Missouri | |||||||
First Unum Life Insurance Company | New York | |||||||
H&J Capital, L.L.C. | Louisiana | |||||||
LeaveLogic, Inc. | Delaware | |||||||
National Dental Plan Limited | England and Wales | |||||||
Northwind Holdings, LLC | Delaware | |||||||
Northwind Reinsurance Company | Vermont | |||||||
Provident Investment Management, LLC | Tennessee | |||||||
Provident Life and Accident Insurance Company | Tennessee | |||||||
Provident Life and Casualty Insurance Company | Tennessee | |||||||
Starmount Insurance Agency, Inc. | Louisiana | |||||||
Starmount Life Insurance Company | Maine | |||||||
Starmount Managed Dental of California, Inc. dba Unum Dental HMO Plan | California | |||||||
The Paul Revere Life Insurance Company | Massachusetts | |||||||
UDVAS, LLC | Delaware | |||||||
Unum European Holding Company Limited | England and Wales | |||||||
Unum Insurance Company | Maine | |||||||
Unum Ireland Limited | Ireland | |||||||
Unum Life Insurance Company of America | Maine | |||||||
Unum Limited | England and Wales | |||||||
Unum Select Limited | England and Wales | |||||||
Unum Zycie Towarzystwo Ubezpieczen i Reasekuracji Spolka Akcyjna | Poland | |||||||
UnumProvident Finance Company Limited | England and Wales |
/s/ Theodore H. Bunting, Jr. | /s/ Timothy F. Keaney | |||||||
Theodore H. Bunting, Jr. | Timothy F. Keaney | |||||||
/s/ Susan L. Cross | /s/ Gloria C. Larson | |||||||
Susan L. Cross | Gloria C. Larson | |||||||
/s/ Susan D. Devore | /s/ Richard P. McKenney | |||||||
Susan D. Devore | Richard P. McKenney | |||||||
/s/ Joseph J. Echevarria | /s/ Ronald P. O'Hanley | |||||||
Joseph J. Echevarria | Ronald P. O'Hanley | |||||||
/s/ Cynthia L. Egan | /s/ Francis J. Shammo | |||||||
Cynthia L. Egan | Francis J. Shammo | |||||||
/s/ Kevin T. Kabat | ||||||||
Kevin T. Kabat | ||||||||
Date: February 17, 2021 | /s/ Richard P. McKenney | ||||
Richard P. McKenney | |||||
President and Chief Executive Officer |
Date: February 17, 2021 | /s/ Steven A. Zabel | ||||
Steven A. Zabel | |||||
Executive Vice President, Chief Financial Officer |
Date: February 17, 2021 | /s/ Richard P. McKenney | ||||
Richard P. McKenney | |||||
President and Chief Executive Officer |
Date: February 17, 2021 | /s/ Steven A. Zabel | ||||
Steven A. Zabel | |||||
Executive Vice President, Chief Financial Officer |