Unum Group · NYSE:UNM
Unum — Investor Day (December 2019)
96 slides from Unum's investor day presentation, Dec 17, 2019
Slide 1: 2020 Outlook Meeting
2020 Outlook Meeting December 17, 2019 | New York 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain information in this presentation constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those not based on historical information, but rather relate to our outlook, future opera
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial m
Slide 4: Today's Participants
Today’s Participants Rick McKenney President and Chief Executive Officer Steve Zabel Executive Vice President and Chief Financial Officer Tom White Senior Vice President, Investor Relations BUSINESS SEGMENT LEADERS OTHER CORPORATE OFFICERS Mike Simonds Marylou Murphy President and Chief Executive Of
Slide 5: Agenda
Agenda • Corporate Overview • Financial Performance • 2020 Outlook • State of the Business • Unum US • Colonial Life • Unum International • Closed Block • Closing Comments • Questions and Answers • Appendix 5
Slide 6: Corporate Overview
Corporate Overview UunUMGROUP
Slide 7: Business Snapshot
Corporate Overview BUSINESS SNAPSHOT Employee benefits leader Distribution of After-Tax Adjusted Operating Earnings* • Top market positions • History of disability expertise • Consistent growth and margins • Strong capital generation * Excludes Corporate; Last Twelve Months Ending September 30, 2019
Slide 8: Our Advantages
Corporate Overview OUR ADVANTAGES Helping the working world thrive throughout life’s moments OUR FRANCHISES HOW WE WIN • Superior and consistent distribution • Leading-edge employee benefits know-how • Excellent reputation with decision makers • Disciplined risk management approach to pricing and cl
Slide 9: Helping the working world thrive throughout life's moments
Corporate Overview Helping the working world thrive throughout life’s moments 9
Slide 10: We make a real difference
Corporate Overview We make a real difference Our products and services help people from all walks of life 10
Slide 11: 2020 Execution Strategy
Corporate Overview 2020 EXECUTION STRATEGY Growth and investment to address the strong need for our products and services Grow Existing Business Expand Our Reach Invest in Operations Continuing to enhance our Investing in our operations Expanding into new areas value proposition and to anticipate an
Slide 12: Advancing Our Strategic Plan
Corporate Overview ADVANCING OUR STRATEGIC PLAN Grow Existing Business Expand Our Reach Invest in Operations • Dental US & UK • Unum Poland • Advancing digital • Medical Stop Loss Acquisition capabilities • Leave Management • Colonial Life • HR Connect Services territory expansion • Benni platform (
Slide 13: Recent Financial Performance
Corporate Overview RECENT FINANCIAL PERFORMANCE Core Segment Premium Growth After-Tax Operating Earnings Per Share ($ millions) 5% 13% CAGR* CAGR* $5.20 $7,909 +4-6% +4-7% growth growth $7,468 $4.29 $7,187 $3.88 $6,875 $3.61 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Outlook Outlook * Three Y
Slide 14: 2020 Environment
Corporate Overview 2020 ENVIRONMENT POSITIVES HEADWINDS Continued strong labor market • Interest rates Consumer confidence remains high • Competitive environment Recession risk receding • Political uncertainty Fed easing on hold • Long-term care 14
Slide 15: 2020 Outlook Summary
Corporate Overview 2020 OUTLOOK SUMMARY Outlook • Core premium growth up 4% to 6% • After-tax adjusted operating earnings per share growth for 2020 of 4% to 7% • Continuation of positive operating trends in our core businesses • Capital deployment consistent with recent years 15
Slide 16: 2020 Outlook
Corporate Overview 2020 OUTLOOK * Consolidated After-Tax Adjusted Operating Earnings including Corporate Segment 16
Slide 17: Closing Comments
Corporate Overview CLOSING COMMENTS History of consistent value Book Value Per Share creation (Ex. AOCI) • Market leader in the growing benefits space $47.45 $50 • Core operations are resilient and $45 8% continue strong performance $40 $35 • Growing and investing to address $30 the strong need for
Slide 18: Financial Performance
Financial Performance UunUMGROUP
Slide 19: Messages from the CFO
Financial Performance MESSAGES FROM THE CFO • Our core businesses continue to deliver industry-leading margins and ROE • Challenging interest rate environment persists • Additional challenges from increasing competition in Voluntary Benefits market and Brexit-driven stagnation in UK • Recent LTC per
Slide 20: Performance Drivers in 2019
Financial Performance PERFORMANCE DRIVERS IN 2019 Maintaining Operating Performance within Our 2019 Outlook 4-7% $5.20 20
Slide 21: Unum US
Financial Performance Unum US 18.4% 17.9% 5.0% $5,943 ¹ 70.1% CAGR $5,736 15.9% 69.2% 15.0% $5,444 67.4% 67.2% 66.7% 13.3% $5,241 $4,960 2015 2016 2017 2018 T12M 2015 2016 2017 † 2018 YTD 2015 2016 2017 2018 YTD 2019² 2019³ 2019³ PREMIUM GROWTH BENEFIT RATIO ADJUSTED OPERATING RETURN ON EQUITY In mi
Slide 22: Colonial Life
Financial Performance Colonial Life 6.2% $1,670 CAGR¹ $1,604 18.0% 51.4% 51.4% $1,511 51.0% 51.3% 51.3% 17.4% 17.5% $1,417 16.6% $1,339 16.2% 2015 2016 2017 2018 T12M 2015 2016 2017† 2018 YTD 2015 2016 2017 2018 YTD 2019² 2019³ 2019³ PREMIUM GROWTH BENEFIT RATIO ADJUSTED OPERATING RETURN ON EQUITY I
Slide 23: Unum International
Financial Performance Unum International (Data for Unum UK unless otherwise noted) 3.1% CAGR¹ £429 18.6% 18.0% £413 £398 76.5% £391 74.4% 74.4% £377 68.5% 69.4% 15.2% 13.4% 13.3% 2015 2016 2017 2018 T12M 2015 2016 2017 2018 YTD 2015 2016 2017 2018 YTD 2019² 2019³ 2019³ PREMIUM GROWTH BENEFIT RATIO A
Slide 24: Financial Performance Topics
Financial Performance Topics • Interest Rate Management • Capital Management • Investment Portfolio 24
Slide 25: Interest Rate Management
Financial Performance INTEREST RATE MANAGEMENT We have successfully managed the pressure from continued low interest rates, though levers differ across our product portfolio UNUM US UNUM INTERNATIONAL COLONIAL LIFE CLOSED BLOCK Long Term Disability Long Term Disability Universal Life Long Term Care
Slide 26: Capital Management
Financial Performance CAPITAL MANAGEMENT Our targets for capital metrics remain constant and are established to support an “A” financial strength rating: • Maintain risk-based capital ratio greater than 350% • Maintain holding company cash above 1x fixed costs Year-end 2019 expected to exceed target
Slide 27: Capital Management: Statutory Results
Financial Performance CAPITAL MANAGEMENT The primary sources of our Traditional U.S. Life Insurance Companies’ holding company cash are Statutory Results† dividends from our U.S. ($ millions) traditional insurance companies Our statutory earnings provide for $959.8 $976.8 • $884.6 strong dividend ca
Slide 28: Capital Management: 2020 Expectations for Cash Use
Financial Performance CAPITAL MANAGEMENT 2020 Expectations for Cash Use • Shareholder dividend and interest expense of approximately $400 million • Share repurchases consistent with 2019 • Pay-off $400 million maturity (September 2020) from proceeds of June 2019 issue • Capital deployment for LTC hi
Slide 29: Capital Management: 2019 Debt Issuance Activity
Financial Performance CAPITAL MANAGEMENT 2019 Debt Issuance Activity • June - $400 million 4.00% 10-year senior note • Sept. - $450 million 4.50% 30-year senior note Results of Accomplishments • $400 million of cash earmarked for 2020 maturity • 2021 maturity ($350 million) tendered and purchased •
Slide 30: Capital Management
Financial Performance CAPITAL MANAGEMENT * Net of prefunded 2020 maturity 30
Slide 31: Returning Capital to Shareholders
Corporate Overview RETURNING CAPITAL TO SHAREHOLDERS Cumulative Repurchase History* Cumulative Dividend History* $5,000 ~$4.7 B $2,000 ~$1.8 B $4,500 $1,800 Retired $4,000 $1,600 46% of $3,500 S/O $1,400 $3,000 $1,200 $2,500 $1,000 $2,000 $800 $1,500 $600 $1,000 $400 $500 $200 $0 $0 2008 2009 2010 2
Slide 32: Investment Portfolio
Financial Performance INVESTMENT PORTFOLIO Portfolio Management Strategy Unum Investment Portfolio* • Our liability mix drives our long-duration, U.S. Gov't & Agencies Cash & Other 5.4% 5.2% fixed-income focus MBS/ABS/CMBS • The portfolio is built and managed to 3.1% perform over the long term throu
Slide 33: Investment Portfolio: Credit Losses
Financial Performance INVESTMENT PORTFOLIO • Better-than-average default Credit Losses Relative to 2.75%2 experience over long term Moody’s Index1 including 2009-2010 recession • Active management of High Yield exposure provides generally equal downgrades and upgrades • Overweight sectors: • Utiliti
Slide 34: Active Management of High Yield and Alternatives
Financial Performance INVESTMENT PORTFOLIO Active Management of High Yield and Alternatives 10% 8% 6% 4% 2% 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 9/30/2019 Alternatives High Yield 34
Slide 35: Miscellaneous Investment Income
Financial Performance INVESTMENT PORTFOLIO Miscellaneous Investment Income ($ millions) $35 $30 $25 Average ~$20 $20 $15 $10 $5 $0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Traditional Miscellaneous Investment Income Alternative Investment Income 35
Slide 36: Management of the BBB Portfolio
Financial Performance INVESTMENT PORTFOLIO • Strong credit expertise Management of the “BBB” Portfolio • Active management of positions deemed vulnerable to downgrade • BBB- consistently lowest sub-rating • As BBB’s now represent ~50% of BBB+ credit indices; Unum remains in 34.2% line with the marke
Slide 37: 2020 Outlook
2020 Outlook UunUMGROUP
Slide 38: Key Messages
2020 Outlook KEY MESSAGES • Expect 4% to 7% adjusted operating earnings per share growth in 2020 • Expect continued solid performance from core segments ⁃ Growth balanced with investments • Unum International ⁃ Brexit impacts ⁃ Poland contribution • Continued interest rate pressures ⁃ Discount rate
Slide 39: Outlook for 4% to 7% Growth
2020 Outlook OUTLOOK FOR 4% TO 7% GROWTH Performance Drivers in 2020 4-6% 4-7% 4-6% (2-4)% (1-2)% (0-1)% 39
Slide 40: 2020 Outlook
Corporate Overview 2020 OUTLOOK * Consolidated After-Tax Adjusted Operating Earnings including Corporate Segment 40
Slide 41: State of the Business
State of the Business UunUMGROUP
Slide 42: Unum US
Unum US UunUMGROUP
Slide 43: Unum US Business Snapshot
Unum US BUSINESS SNAPSHOT Sales Distribution¹ (YoY Growth) • Employee benefits distributed through brokers, consultants and platforms • Broad set of ancillary products; top 5 market share in each of the following: ⁃ Group Long-Term and Short-Term Disability ⁃ Group Life and AD&D ⁃ Voluntary Benefits
Slide 44: Unum US Business Strategy Overview
Unum US BUSINESS STRATEGY OVERVIEW GOALS & ASPIRATIONS Deliver the #1 customer experience in employee benefits CUSTOMER PRODUCT & RISK MANAGEMENT EXPERIENCES SERVICES & DISTRIBUTION • Re-oriented around • New Voluntary Products • Strengthening risk STRATEGIC customer journeys • Significant investmen
Slide 45: Unum US Key Messages
Unum US KEY MESSAGES • We continue to generate consistent, market-leading returns • Interest rate and competitive dynamics in select markets will moderate near-term growth • Our strategies are showing clear evidence of success and provide a path for longer-term revenue and earnings expansion: ⁃ Larg
Slide 46: Disciplined Player Amid Marketplace Pressures
Unum US WE REMAIN A DISCIPLINED PLAYER IN THE CONTEXT OF MARKETPLACE PRESSURES LTD Discount Rate and Benefit Ratio Low interest rate environment 88% • We have dealt successfully with interest rates over time 84% • Our interest reserve margins remain in our target range 80% • Recent interest rate dev
Slide 47: Focus on Customer Experience
Unum US We are RANKED #1 in FOCUS ON CUSTOMER EXPERIENCE comparison to competitors* across ease of business, employer trust and meeting the Strong investment in digital transformation needs of our customers aligned with our brand promise of simplicity, expertise and empathy % of Sales from Existing
Slide 48: Product & Service Growth
Unum US PRODUCT & SERVICE GROWTH Group Dental & Vision Sales ($ millions) • Fastest-growing commercial dental provider 91 network in the U.S.* 9 65 • Dental/Vision sales and premium increases 44 6 expected to contribute to further growth: 6 82 59 • ~1% to our 2019 Unum US sales growth 38 • ~1% to 20
Slide 49: Large & Mid-Sized Employer Solutions: Leave
Unum US LARGE & MID-SIZED EMPLOYER SOLUTIONS • Rapid growth in demand for leave services, Leave Service Annual natural connect to disability Growth Rate • 9 states currently implemented/passed comprehensive (Covered Lives) paid leave legislation; 31 states considered new/expanded programs in 2019 29
Slide 50: Large & Mid-Sized Employer Solutions: HRConnect
Unum US LARGE & MID-SIZED EMPLOYER SOLUTIONS • HRConnect is providing a better client experience with expanded distribution Workday is growing at ~30% annually • Human Capital Management cloud market is growing with several clear leaders 2,800 2,200 • We continue to invest in capabilities 1,800 that
Slide 51: Small Employer Solutions
Unum US SMALL EMPLOYER SOLUTIONS • Significant opportunity for growth in the small employer market (<500 employees) • Continue to build out the strength of a bundled product set • Consumer focused voluntary • Dental (PPO/DHMO) and Vision • Enhancing our distribution model A Better Benefits Experienc
Slide 52: Short & Mid-Term Earnings Growth
Unum US SHORT & MID-TERM EARNINGS GROWTH Unum US Net Investment Income • Interest rate pressures will moderate ($ millions) near term BTOE growth through: • Reduced NII on reserve balances • Reduced NII on capital (2-3%) • Discount rate changes • Asset levels rise only modestly reflecting growth in
Slide 53: Unum US 2020 Financial Outlook
Unum US 2020 FINANCIAL OUTLOOK 53
Slide 54: Colonial Life
Colonial Life UunUMGROUP
Slide 55: Colonial Life Business Snapshot
Colonial Life 2 BUSINESS SNAPSHOT Sales Distribution (YoY Growth) • Market Share1 • #2 in STD, Accident and Cancer • #3 Universal, Whole Life and Hospital Indemnity • #5 in Critical Illness • Significant growth in Dental & Vision • Size and Scale • Over 95,000 clients served • Over 4.5 million polic
Slide 56: 2020 Strategy
Colonial Life 2020 STRATEGY • Protect 5 million of America’s workers and their families by 2020 GOALS & ASPIRATIONS • Be known as the company that provides simple, modern, personal benefit experiences • Grow and leverage our unique distribution to reach more employers and individuals GROWTH/ CUSTOME
Slide 57: Colonial Life Key Messages
Colonial Life KEY MESSAGES • Strategic business decisions within our distribution system and headwinds from lapses in the large case block pressured growth in 2019 • Despite growth results, earnings remain strong driven by outstanding margins and continued focus on operational efficiency • We remain
Slide 58: 2020 Key Priorities
Colonial Life 2020 KEY PRIORITIES Expand our reach to serve more customers • Growth and development of agency sales force • Effective broker partnerships • Increase focus on public sector • New and enhanced products and offerings • Drive adoption and utilization of digital capabilities Drive efficie
Slide 59: VB Market
Colonial Life VB MARKET Market Growth Potential Existing Client Growth Opportunity (in millions of lives) U.S. working population: 173.9M Total client Colonial Life current policy holders: 4.5M 95,414 customers Average EEs Self 190 per client Employed 24.8 Large Average client 60.1 Public Sector pen
Slide 60: Territory Expansion Update
Colonial Life TERRITORY EXPANSION UPDATE Footprint prior to territory expansion 60
Slide 61: Territory Expansion Update
Colonial Life TERRITORY EXPANSION UPDATE Footprint of new territories 61
Slide 62: Territory Expansion Update
Colonial Life TERRITORY EXPANSION UPDATE Territory footprint as of 1/1/2019 34.2% more EMPLOYERS are within a 75 mile radius of a territory office than in 2015 33.8% more PEOPLE are within a 75 mile radius of a territory office than in 2015 62
Slide 63: VB Broker Market
Colonial Life VB BROKER MARKET • Broker consolidation is reducing capacity for brokers to effectively serve the small employer market • More than 90% of our competitors can only serve the market through broker relationships • Survey of Colonial Life brokers 3Q2019¹ • Agents/distribution considered a
Slide 64: Changing Benefits Landscape
Colonial Life CHANGING BENEFITS LANDSCAPE • Increasing importance of technology’s role in benefits administration: • Nearly half of employers utilize technology to support HR functions • Explosive growth in benefits and enrollment technology in the last decade • More competitors in the benefits spac
Slide 65: Customer Experience & Digital Progress
Colonial Life CUSTOMER EXPERIENCE & DIGITAL PROGRESS Quote to Claim Capabilities • Agent assist application • Dispatch • Employee online scheduler • Digital postcard • Customized customer websites • Digital benefit booklets • Colonial Life benefits app • Claims Automation 65
Slide 66: Workforce Talent
Colonial Life WORKFORCE TALENT The Changing Face of the Workforce 2019 Colonial Life Percent of the U.S. Labor Force Workforce 2% 3% 21% 15% 25% 30% 50% 33% 50% 35% 29% 5% 4% 1994 2017 2019 Gen Z Millenials Gen X Baby Boomers Silent Source: Millennials are the largest generations in the U.S. labor f
Slide 67: Distribution Talent
Colonial Life DISTRIBUTION TALENT The Changing Face of the Workforce 2019 Colonial Life Percent of the U.S. Labor Force Distribution 2% 3% 21% 25% 23% 34% 50% 33% 35% 36% 29% 5% 4% 1994 2017 2019 Gen Z Millenials Gen X Baby Boomers Silent Source: Millennials are the largest generations in the U.S. l
Slide 68: Colonial Life Summary
Colonial Life SUMMARY • Colonial Life continues to deliver consistent results with strong margins in spite of unexpected challenges in 2019 • We continue to invest in our future growth: • New, or enhanced, products and offerings • Expanding our footprint • Digital transformation • Improved customer
Slide 69: Colonial Life 2020 Financial Outlook
Colonial Life 2020 FINANCIAL OUTLOOK 69
Slide 70: Unum International
Unum International UunUMGROUP
Slide 71: Unum International Business Snapshot
Unum International 1 BUSINESS SNAPSHOT Sales Distribution (YoY Growth) • Primary Products • Group Income Protection • Group Life • Supplementary and Voluntary products (Group Critical Illness, Dental, Individual Life) • Market Share • Unum UK: #1 Group Income Protection • Unum UK: #6 Group Life • Un
Slide 72: Unum International Business Strategy Overview
Unum International BUSINESS STRATEGY OVERVIEW • Be recognized as a broad employee benefits and services provider outside of the U.S. GOALS & ASPIRATIONS • Be #1 partner of choice for distribution • Be the place that people aspire to work GROW UK INCOME GROW OUR EXPAND INTO PROTECTION BLOCK OTHER PRO
Slide 73: Unum International Key Messages
Unum International KEY MESSAGES • UK political landscape continues to generate economic uncertainty; baseline projection for an orderly Brexit with economic conditions similar to this year • Challenging market conditions continue to pressure UK margins and growth • Poland is ahead of expectations fo
Slide 74: Operating Environment
Unum International OPERATING ENVIRONMENT U.K. GDP POLAND GDP 2.5 6.0 2.0 5.5 5.0 1.5 4.5 1.0 4.0 0.5 3.5 0.0 3.0 Jun-17 Jun-18 Jun-19 Jun-17 Jun-18 Jun-19 Sep-17 Sep-18 Sep-19 Sep-17 Sep-18 Sep-19 Dec-17 Dec-18 Dec-17 Dec-18 Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19 $/£ EXCHANGE RATE UK 10-YEAR GILT
Slide 75: Strategic Initiatives
Unum International STRATEGIC INITIATIVES c. 700 employers and c. Benni brand and award winning platform 200,000 employees migrated launched, driving employee awareness and to new Acturis platform providing access to easy and efficient enrollment c. 9,000 employers and c. Help@Hand health support app
Slide 76: 2020 Key Priorities
Unum International 2020 KEY PRIORITIES UK Poland • Remain agile to respond to dynamic UK environment • Continue to expand the Life Protection Advisors model with circa 20% additional Planners to be • Focus on being easy to do business with by improving recruited in 2020 our service, simplifying our
Slide 77: Unum International 2020 Financial Outlook
Unum International 2020 FINANCIAL OUTLOOK $:£ assumed at 1.30 for 2020 Plan (Nov YTD 2019 avg. rate = 1.27) Operating earnings and ROE are impacted by the amortization of the acquisition cost for Poland 77
Slide 78: Closed Block
Closed Block UunUMGROUP
Slide 79: Closed Block Business Snapshot
Closed Block 1 BUSINESS SNAPSHOT Premium Distribution (YoY Growth) Legacy Discontinued Blocks • Closed Disability Block • Mature block with sales discontinued in mid-1990s • Block largely in claim status • Average attained age of ALR is 57 • Closed Long Term Care (LTC) Block • Discontinued ILTC sale
Slide 80: Closed Block Strategy
Closed Block STRATEGY FINANCIAL ANALYSIS LTC RATE INCREASES CAPITAL MANAGEMENT Use new experience analysis tools • Continue pursuit of justified • Continue to implement to manage the blocks rate increases structural changes to enhance financial flexibility • Continue to build out LTC and • Stratify
Slide 81: 2020 Key Priorities
Closed Block 2020 KEY PRIORITIES Our strategy for the Closed Block remains unchanged and we are making strong progress in our focus areas • We will continue to leverage the enhanced financial analysis that we have implemented and invest in technological improvements • Executing on our LTC rate incre
Slide 82: Long Term Care Demographics
Closed Block LONG TERM CARE DEMOGRAPHICS • Our LTC block is predominantly group-sponsored plans • These group policies generally have higher lapse rates and less rich benefits (less lifetime benefits, lower avg. daily benefits and less inflation protection) 82
Slide 83: Long Term Care 2018 Rate Increase Strategy Update
Closed Block LONG TERM CARE - 2018 RATE INCREASE STRATEGY UPDATE • We continue to actively engage Present Value of Rate Increase Approvals with regulators to pursue Achieved through 3Q19 actuarially justified rate increases and rate increase alternatives for policyholders • We have also met with reg
Slide 84: Long Term Care Interest Adjusted Loss Ratio
Closed Block LONG TERM CARE INTEREST ADJUSTED LOSS RATIO LTC GAAP IALR 100% 95% 89.8% 90% 88.5% 87.5% 87.4% 85% 83.2% 87.2% Cumulative loss ratio over past 80% four quarters 75% 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 84
Slide 85: Long Term Care Interest Rates
Closed Block LONG TERM CARE INTEREST RATES LTC New Money Yields 6.5% 6.3% 6.1% 5.9% 5.7% 5.5% 5.3% 5.1% 4.9% 4.7% 4.5% 2018 2019 2020 2021 2022 2023 2024 2025 • Since updating reserve assumptions in the third quarter of 2018, our yield on new purchases for our LTC reserve portfolio has exceeded the
Slide 86: Closed Individual Disability Block
Closed Block CLOSED INDIVIDUAL DISABILITY BLOCK Closed Disability Block Interest Adjusted Loss Ratio 83.6% 83.6% 82.8% 82.4% 80.4% 80.1% 2014 2015 2016 2017 2018 YTD 2019 Northwind Securitization • The Northwind securitization continues to perform as expected • Non-recourse debt currently $80 millio
Slide 87: Closed Block Summary
Closed Block SUMMARY • Earnings for the Closed Block for 2020 are expected to be generally in line with 2019 • Net investment income will likely be volatile for this business segment, driven in part by miscellaneous investment income • Our Long Term Care block has generally performed in line with th
Slide 88: Closed Block 2020 Financial Outlook
Closed Block 2020 FINANCIAL OUTLOOK 88
Slide 89: Closing Comments
Closing Comments UunUMGROUP
Slide 90: Key Takeaways
Closing Comments KEY TAKEAWAYS • Uniquely focused on employee benefits in the workplace • We will continue to invest in our core businesses to support growth and further enhance the customer experience • We continue to actively manage the Closed Block • 2020 outlook: 4% - 7% after-tax adjusted opera
Slide 91: Questions and Answers
Questions and Answers UunUMGROUP
Slide 92: Reconciliation of Non-GAAP Financial Measures
Appendix Reconciliation of Non-GAAP Financial Measures 92
Slide 93: Reconciliation of Non-GAAP Financial Measures
Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Last Twelve Months Ending September 30, 2019 Year Ended December 31, 2018 (in millions) per share* (in millions) per share* Net Income $ 1,053.2 $ 4.96 $ 523.4 $ 2.38 Excluding: Net Realized Investment Loss (net of tax benefit of $15.3; $11.0) (
Slide 94: Reconciliation of Non-GAAP Financial Measures
Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Annualized After-tax Adjusted Average Adjusted Operating Operating Income (Loss) Allocated Equity(1) Return (in millions) on Equity Nine Months Ended September 30, 2019 Unum US $ 608.0 $ 4,531.4 Unum International 73.0 733.5 Colonial Life 203.3
Slide 95: Reconciliation of Non-GAAP Financial Measures
Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions of dollars, except ratios) September 30, 2019 Debt $ 3,437.3 Including: Lease Liability 112.4 Excluding: Non-Recourse Debt 92.7 Expected Maturity of the 5.625% senior notes due 2020 400.0 Early Retirement of the 3.000% senior notes
Slide 96: Reconciliation of Non-GAAP Financial Measures
Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES September 30 December 31 2019 2018 2017 2016 2015 2014 (in millions) (per share) (in millions) (per share) (in millions) (per share) (in millions) (per share) (in millions) (per share) (in millions) (per share) Total Stockholders' Equity, As Rep