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Segment Information | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Information | We have three principal operating business segments: Unum US, Unum International, and Colonial Life. Our other segments are Closed Block and Corporate. Segment information is shown below.
| Three Months Ended June 30 |  | Six Months Ended June 30
| 2024 |  | 2023 |  | 2024 |  | 2023
| (in millions of dollars)
Premium Income |  |  |  |  |  |  |
Unum US |  |  |  |  |  |  |
Group Disability |  |  |  |  |  |  |
Group Long-term Disability | $ | 521.5 |  |  | $ | 516.1 |  |  | $ | 1,038.2 |  |  | $ | 1,020.8 |
Group Short-term Disability | 276.3 |  |  | 256.2 |  |  | 539.4 |  |  | 496.5 |
Group Life and Accidental Death & Dismemberment |  |  |  |  |  |  |
Group Life | 447.5 |  |  | 418.2 |  |  | 890.1 |  |  | 831.3 |
Accidental Death & Dismemberment | 46.4 |  |  | 43.6 |  |  | 92.2 |  |  | 87.1 |
Supplemental and Voluntary |  |  |  |  |  |  |
Voluntary Benefits | 222.9 |  |  | 213.4 |  |  | 445.8 |  |  | 427.9 |
Individual Disability | 142.2 |  |  | 125.8 |  |  | 284.2 |  |  | 250.0 |
Dental and Vision | 74.1 |  |  | 68.1 |  |  | 148.4 |  |  | 137.4 |
| 1,730.9 |  |  | 1,641.4 |  |  | 3,438.3 |  |  | 3,251.0 |
Unum International |  |  |  |  |  |  |
Unum UK |  |  |  |  |  |  |
Group Long-term Disability | 102.3 |  |  | 104.7 |  |  | 205.8 |  |  | 196.4 |
Group Life | 48.8 |  |  | 41.1 |  |  | 97.5 |  |  | 80.3 |
Supplemental | 40.6 |  |  | 33.5 |  |  | 83.7 |  |  | 65.3 |
Unum Poland | 37.1 |  |  | 28.6 |  |  | 73.5 |  |  | 54.5 |
| 228.8 |  |  | 207.9 |  |  | 460.5 |  |  | 396.5 |
Colonial Life |  |  |  |  |  |  |
Accident, Sickness, and Disability | 241.7 |  |  | 235.6 |  |  | 484.9 |  |  | 471.3 |
Life | 115.2 |  |  | 106.6 |  |  | 229.5 |  |  | 211.9 |
Cancer and Critical Illness | 89.3 |  |  | 88.4 |  |  | 178.7 |  |  | 176.9 |
| 446.2 |  |  | 430.6 |  |  | 893.1 |  |  | 860.1 |
Closed Block |  |  |  |  |  |  |
Long-term Care | 173.3 |  |  | 174.0 |  |  | 347.8 |  |  | 349.1 |
All Other | 48.0 |  |  | 55.2 |  |  | 97.8 |  |  | 111.7 |
| 221.3 |  |  | 229.2 |  |  | 445.6 |  |  | 460.8 |
Total Premium Income | $ | 2,627.2 |  |  | $ | 2,509.1 |  |  | $ | 5,237.5 |  |  | $ | 4,968.4 |
| Unum US |  | Unum International |  | Colonial Life |  | Closed Block |  | Corporate |  | Total
| (in millions of dollars)
Three Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Premium Income | $ | 1,730.9 |  |  | $ | 228.8 |  |  | $ | 446.2 |  |  | $ | 221.3 |  |  | $ | — |  |  | $ | 2,627.2 |
Net Investment Income | 158.1 |  |  | 38.0 |  |  | 40.5 |  |  | 294.2 |  |  | 14.3 |  |  | 545.1 |
Other Income | 58.2 |  |  | 0.5 |  |  | 0.2 |  |  | 12.2 |  |  | 0.4 |  |  | 71.5 |
Adjusted Operating Revenue | $ | 1,947.2 |  |  | $ | 267.3 |  |  | $ | 486.9 |  |  | $ | 527.7 |  |  | $ | 14.7 |  |  | $ | 3,243.8 |
Adjusted Operating Income (Loss) | $ | 357.5 |  |  | $ | 42.5 |  |  | $ | 116.9 |  |  | $ | 51.6 |  |  | $ | (45.3) |  |  | $ | 523.2 |
Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |
Premium Income | $ | 1,641.4 |  |  | $ | 207.9 |  |  | $ | 430.6 |  |  | $ | 229.2 |  |  | $ | — |  |  | $ | 2,509.1 |
Net Investment Income | 158.0 |  |  | 45.8 |  |  | 38.0 |  |  | 263.9 |  |  | 25.4 |  |  | 531.1 |
Other Income | 54.5 |  |  | 0.1 |  |  | 0.4 |  |  | 13.8 |  |  | 2.3 |  |  | 71.1 |
Adjusted Operating Revenue | $ | 1,853.9 |  |  | $ | 253.8 |  |  | $ | 469.0 |  |  | $ | 506.9 |  |  | $ | 27.7 |  |  | $ | 3,111.3 |
Adjusted Operating Income (Loss) | $ | 343.1 |  |  | $ | 43.5 |  |  | $ | 115.5 |  |  | $ | 51.2 |  |  | $ | (34.9) |  |  | $ | 518.4 |
| Unum US |  | Unum International |  | Colonial Life |  | Closed Block |  | Corporate |  | Total
| (in millions of dollars)
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Premium Income | $ | 3,438.3 |  |  | $ | 460.5 |  |  | $ | 893.1 |  |  | $ | 445.6 |  |  | $ | — |  |  | $ | 5,237.5 |
Net Investment Income | 315.1 |  |  | 64.1 |  |  | 79.8 |  |  | 567.3 |  |  | 32.3 |  |  | 1,058.6 |
Other Income | 118.8 |  |  | 0.8 |  |  | 3.2 |  |  | 25.3 |  |  | 1.1 |  |  | 149.2 |
Adjusted Operating Revenue | $ | 3,872.2 |  |  | $ | 525.4 |  |  | $ | 976.1 |  |  | $ | 1,038.2 |  |  | $ | 33.4 |  |  | $ | 6,445.3 |
Adjusted Operating Income (Loss) | $ | 742.7 |  |  | $ | 79.9 |  |  | $ | 230.6 |  |  | $ | 75.9 |  |  | $ | (91.4) |  |  | $ | 1,037.7 |
Six Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |
Premium Income | $ | 3,251.0 |  |  | $ | 396.5 |  |  | $ | 860.1 |  |  | $ | 460.8 |  |  | $ | — |  |  | $ | 4,968.4 |
Net Investment Income | 315.3 |  |  | 76.7 |  |  | 75.3 |  |  | 521.1 |  |  | 51.5 |  |  | 1,039.9 |
Other Income | 108.1 |  |  | 0.5 |  |  | 0.6 |  |  | 27.3 |  |  | 2.5 |  |  | 139.0 |
Adjusted Operating Revenue | $ | 3,674.4 |  |  | $ | 473.7 |  |  | $ | 936.0 |  |  | $ | 1,009.2 |  |  | $ | 54.0 |  |  | $ | 6,147.3 |
Adjusted Operating Income (Loss) | $ | 655.6 |  |  | $ | 81.9 |  |  | $ | 209.4 |  |  | $ | 109.4 |  |  | $ | (68.4) |  |  | $ | 987.9 |
| June 30 |  | December 31
| 2024 |  | 2023
| (in millions of dollars)
Assets |  |  |
Unum US | $ | 15,100.2 |  |  | $ | 15,561.1 |
Unum International | 3,375.8 |  |  | 3,372.9 |
Colonial Life | 4,856.1 |  |  | 4,830.4 |
Closed Block | 34,308.5 |  |  | 35,272.8 |
Corporate | 4,403.8 |  |  | 4,218.0 |
Total Assets | $ | 62,044.4 |  |  | $ | 63,255.2 |
We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of investment gains or losses, the amortization of the cost of reinsurance, the impact of non-contemporaneous reinsurance, and reserve assumption updates as specified in the reconciliations below. We believe adjusted operating revenue and adjusted operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, net income, or net loss. Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. Investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of investment gains or losses. Although we may experience investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities. Cash flow assumptions used to calculate our liability for future policy benefits are reviewed at least annually and updated, as needed, with the resulting impact reflected in net income. While the effects of these assumption updates are recorded in the reporting period in which the review is completed, these updates reflect experience emergence and changes to expectations spanning multiple periods. We believe that by excluding the impact of reserve assumption updates we are providing a more comparable and consistent view of our quarterly results. We exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that we recognized upon the exit of the business related to the policies on claim status as well as the impact of non-contemporaneous reinsurance that resulted from the adoption of ASU 2018-12. Due to the execution of the second phase of the reinsurance transaction occurring after January 1, 2021, the transition date of ASU 2018-12, in accordance with the provisions of the ASU related to non-contemporaneous reinsurance, we were required to establish the ceded reserves using an upper-medium grade fixed-income instrument as of the reinsurance transaction date in March 2021 which resulted in higher ceded reserves compared to that which was reported historically. However, the direct reserves for the block reinsured in the second phase were calculated using the original discount rate utilized as of the transition date. Both the direct and ceded reserves are then remeasured at each reporting period using a current discount rate reflective of an upper-medium grade fixed-income instrument, with the changes recognized in OCI. While the total equity impact is neutral, the different original discount rates utilized for direct and ceded reserves result in disproportionate earnings impacts. The impact of non-contemporaneous reinsurance will fluctuate depending on the magnitude of reserve changes during the period. We believe that the exclusion of these items provides a better view of our results from our ongoing businesses. We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability. A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows:
| Three Months Ended June 30 |  | Six Months Ended June 30
| 2024 |  | 2023 |  | 2024 |  | 2023
| (in millions of dollars)
Total Revenue | $ | 3,233.4 |  |  | $ | 3,112.2 |  |  | $ | 6,433.7 |  |  | $ | 6,148.3 |
Excluding: |  |  |  |  |  |  |
Net Investment Gain (Loss) | (10.4) |  |  | 0.9 |  |  | (11.6) |  |  | 1.0 |
Adjusted Operating Revenue | $ | 3,243.8 |  |  | $ | 3,111.3 |  |  | $ | 6,445.3 |  |  | $ | 6,147.3 |
Income Before Income Tax | $ | 495.5 |  |  | $ | 498.4 |  |  | $ | 991.2 |  |  | $ | 949.7 |
Excluding: |  |  |  |  |  |  |
Net Investment Gain (Loss) | (10.4) |  |  | 0.9 |  |  | (11.6) |  |  | 1.0 |
Amortization of the Cost of Reinsurance | (10.3) |  |  | (11.0) |  |  | (20.7) |  |  | (22.0) |
Non-Contemporaneous Reinsurance | (7.0) |  |  | (9.9) |  |  | (14.2) |  |  | (17.2) |
Adjusted Operating Income | $ | 523.2 |  |  | $ | 518.4 |  |  | $ | 1,037.7 |  |  | $ | 987.9 |

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- Definition The entire disclosure for reporting segments including data and tables. 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