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About Provident Life & Accident Insurance Company

Through injury or illness, Unum works to keep employees employed. A disability insurer in the US, the UK and Poland, it offers short-term and long-term disability insurance, supplemental health coverage, and life and accidental death and dismemberment insurance to individuals and groups. Its Colonial Life unit offers expanded cancer, critical illness, vision products, and dental insurance. Additional subsidiaries include Unum Life Insurance Company of America, Provident Life and Accident, First Unum Life, Colonial Life & Accident, Paul Revere Life Insurance, Starmount Life Insurance, and Unum Poland. The company operates as Unum Limited in the UK. Unum's products are sold through field sales agents and independent brokers.

Operations

Unum reporting segments are comprised of the following: Unum US, Unum International, Colonial Life, Closed Block, and Corporate.

More than 55% of Unum's revenue come from the Unum US segment, which offers group of group long-term and short-term disability insurance, group life and accidental death and dismemberment products, as well as supplemental and voluntary lines of business , which are comprised of individual disability, voluntary benefits, and dental and vision products.Unum also generates revenue from its Closed Block segment (more than 20% of sales), which services policies in the long-term care, individual disability, and other insurance products no longer actively marketed.

The group's Colonial Life segment -- which offers accident, sickness, and disability products, which includes our dental and vision products, life products, and cancer and critical illness products. It accounts around 15% of company's total sales.

The Unum International segment produced more than 5% of revenue, operates in the United Kingdom and Poland. Unum UK's business includes insurance for group long-term disability, group life, and supplemental lines of business which include dental, individual disability, and critical illness products. Unum Poland's business primarily includes insurance for individual and group life with accident and health riders.

The company covers roughly 39 million people worldwide and counts 182,000 businesses in the US and UK among its customers (including a third of the Fortune 500).

Premium income accounts for about 80% of Unum's total revenue.

Geographic Reach

The US market contributes more than 55% of Unum's annual revenue. The company runs five primary operating centers in Tennessee, Maine, Louisiana, South Carolina, and the United Kingdom. In addition, the company has an office space in Worcester, Massachusetts and in various other locations throughout the United States, the United Kingdom, Ireland, and Poland. Its Unum Limited office in Dorking is the headquarters for the smaller Unum UK operations, which include Ireland.

Sales and Marketing

Unum uses its own sales force, as well as independent agents, consultants, and brokers, to market its products to employers.

Financial Performance

Unum's revenue has inched steadily upward for the past five years thanks to increases in net premiums written. Net income was also on the rise but took a steep dive in 2018.

Revenue rose 3% to $12 billion in 2019 because of increases in Premiums and Other incomes.

Net income increased by 110% to $1.1 billion in 2019 due to higher revenue.

The company ended 2019 with $84.1 million in net cash, about $10 million less than it had at the end of 2018. Operating activities provided $1.7 billion in cash, while investing activities used $1.4 billion and financing activities used another $358 million.

Strategy

Unum is committed not only to meeting the needs of their customers who depend on them, but also to operating with integrity and being accountable for their actions through sound and consistent business practices, a strong internal compliance program, and a comprehensive risk management strategy. Their strategy is centered on growing their existing business, expanding their reach, and investing in their operations and technology to anticipate and respond to new market demands to meet the changing needs of their customers.

Although the low interest rate environment continues to place pressure on their profit margins, the company continues to analyze and employ strategies that they believe will help them navigate this environment and allows them to maintain solid operating margins and significant financial flexibility to support the needs of their businesses, while also continuing to return capital to their shareholders and exploring merger and acquisition opportunities to enhance their business lines. The continued strong labor market in the U.S. and the high level of consumer confidence will have positive impacts on their business. Unum have substantial leverage to rising interest rates and an improving economy which generates payroll growth and wage inflation. The company believes that consistent operating results, combined with the implementation of strategic initiatives and the effective deployment of capital, will allow them to meet their long-term financial objectives.

Unum's overall investment philosophy is to invest in a portfolio of high quality assets that provide investment returns consistent with that assumed in the pricing of its insurance products. Assets are invested predominately in fixed maturity securities. Investment strategy for their portfolios is to match the effective asset cash flows and durations with related expected liability cash flows and durations to consistently meet the liability funding requirements of its businesses. The company seeks to earn investment income while assuming credit risk in a prudent and selective manner, subject to constraints of quality, liquidity, diversification, and regulatory considerations.

Company Background

Unum traces its roots back to the 1870s, when Provident Life & Accident Insurance was established to provide medical insurance to coal miners.

Provident Life & Accident Insurance Company

1 Fountain Sq Ste 1 # 1
Chattanooga, TN 37402-1303
Phone: 1 (423) 755-1011

Firm Stats

Employer Type: Privately Owned
Vice President Internet Marketing: John Barnes
Director, Media Relations: Brad Carmony
Sr. Technical Project Manager: Daryl Dunn
Employees (This Location): 1,500
Employees (All Locations): 2,000

Major Office Locations

Chattanooga, TN

Other Locations

Glendale, CA
Atlanta, GA
Oakbrook Terrace, IL
Portland, ME
Southfield, MI
Charlotte, NC
Mount Laurel, NJ
Pleasantville, NY
King Of Prussia, PA
Spring, TX
Elm Grove, WI