Unum 2007 Annual Report Download - page 49

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Unum 2007 Annual Report 47
Unum US Sales
Year Ended December 31
(in millions of dollars) 2007 % Change 2006 % Change 2005
Fully Insured Products
Group Long-term Disability $ 177.7 (14.8)% $ 208.5 15.6)% $ 180.4
Group Short-term Disability 64.7 (12.7) 74.1 (0.9) 74.8
Group Life 134.0 (10.5) 149.8 (5.1) 157.8
Accidental Death & Dismemberment 13.8 0.7 13.7 (6.8) 14.7
Individual Disability — Recently Issued 59.7 7.8 55.4 3.0 53.8
Group Long-term Care 32.8 30.7 25.1 19.0 21.1
Individual Long-term Care 9.9 (10.0) 11.0 (15.4) 13.0
Voluntary Benefits 138.4 3.1 134.2 3.1 130.2
Total Fully Insured Products 631.0 (6.1) 671.8 4.0 645.8
Administrative Services Only (ASO) Products 7.2 (47.4) 13.7 80.3 7.6
Total Sales $ 638.2 (6.9) $ 685.5 4.9 $ 653.4
Year Ended December 31, 2007 Compared with Year Ended December 31, 2006
While overall sales for Unum US declined in 2007 relative to 2006, we maintained our disciplined pricing and our sales mix was generally
in line with our target mix. In 2007, we had a sales mix of approximately 61 percent core market and 39 percent large case market, in line
with our targeted 60 percent core/40 percent large case market distribution mix. Although sales on an annualized premium basis declined
year over year in our group core market segment, the number of new accounts in this segment increased over the prior year. Sales growth
gained momentum during the second half of the year, with an increase of 14.5 percent in group core market sales during the last six
months of 2007 compared to the same period of 2006.
Sales for our individual disability line of business increased over the prior year. We continue to focus on the multi-life individual
disability business, with almost 94 percent of total 2007 sales for this line of business occurring in the multi-life market. Long-term care
sales were generally in line with our strategy for this product line, with growth in the group product and a decline in sales for individual
long-term care. Our voluntary benefits sales increased in 2007 relative to the prior year, consistent with our focus on sales growth in our
voluntary product lines.
We anticipate that sales for our group core market segment and our voluntary products will increase during 2008. Because our focus
for our 2007 renewal program was aimed primarily at improving the profitability of our large case group business, sales and persistency
for the large case market segment declined during 2007, as expected. As previously noted, during the third quarter of 2007, we introduced
Simply Unum, a new product offering and administrative platform designed to better meet the needs of our group core market segment
and our voluntary market. The initial market rollout was limited to four pilot sales offices, with the full rollout expected to occur during
the first and second quarters of 2008.