Unum(US:UNM)2021-02-17 18:16Regulation and Compliance - The company is subject to extensive regulation in the U.S., U.K., and Poland, which may impact operations due to changes in laws and regulations [111]. - The company’s U.S. insurance subsidiaries are regulated by state authorities, which have broad powers over licensing, sales practices, and financial reporting [112]. - The company’s U.K. subsidiary is regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), focusing on financial health and consumer protection [113]. - The company’s Polish subsidiary is regulated by the Financial Supervision Authority (FSA), ensuring the stability of financial services firms [115]. - The NAIC is reviewing solvency regulation frameworks, which may lead to changes in capital requirements for the company’s U.S. insurance subsidiaries [117]. - The company received approval from the PRA to use its own internal model for calculating regulatory capital under Solvency II [122]. - The NAIC has adopted the Corporate Governance Annual Disclosure Model Act, requiring U.S. insurers to disclose detailed governance practices [126]. - The NAIC's Insurance Data Security Model Law mandates cybersecurity programs to protect consumer data, currently effective only in South Carolina among the states where the company operates [127]. Competition and Market Dynamics - The company faces significant competition in the insurance market, with both traditional and non-traditional competitors affecting pricing and customer retention [105]. - The company has to attract and retain independent agents and brokers, facing competition for their services which could impact product sales [109]. Financial Performance and Capital Management - The company’s capital requirements are governed by risk-based capital (RBC) standards, which assess the adequacy of statutory capital based on various risk factors [116]. - The company’s financial strength ratings are assessed by agencies like AM Best and S&P, reflecting its capacity to meet obligations to policyholders [101]. - The company’s operations may experience volatility due to fluctuations in foreign currency exchange rates, particularly the British pound sterling [114]. - As of December 31, 2020, total assets for the Unum International segment were approximately 6% of consolidated assets, while total liabilities were about 5% of consolidated liabilities [135]. Workforce and Employee Engagement - The company employed approximately 10,700 employees as of December 31, 2020, with a voluntary employee turnover rate of 9.4%, a decrease from the previous year [136]. - Approximately 89% of employees are based in the United States, with the remaining 11% located internationally [136]. - The company emphasizes training and professional development, ensuring all employees have access to coaching and career development resources [145]. - In 2019, approximately 31% of employees who participated in career development workshops received a promotion or lateral move either later in 2019 or during 2020 [147]. - The company provides all employees access to the LinkedIn Learning platform, which offers training options in various skills, including technical and leadership [147]. - The company regularly conducts confidential employee surveys to gain insights and improve employee engagement and satisfaction [148]. - In the 2020 employee survey, 9,910 employees responded, with approximately 84% indicating favorable engagement and recommending the company as a great place to work [148]. Diversity and Inclusion Initiatives - The company has established a dedicated Office of Inclusion & Diversity to enhance workplace culture and drive inclusivity [141]. - The company emphasizes creating an inclusive workplace, free of discrimination and bias, to support diverse employees [146]. - The company is committed to increasing women in leadership positions through professional and career development initiatives [146]. - The Multicultural Leadership Development Program aims to prepare racially diverse employees for higher leadership roles, promoting equity and opportunity [147]. - The Actuarial Development Program and Accounting and Finance Development Program are multi-year rotational programs designed to develop future leaders with both leadership and technical skills [147]. - The Leader Academy is an online program available to managers and employees interested in management roles, focusing on strategic decision-making and leading change [147]. Leadership and Governance - The executive team includes Richard P. McKenney as President and CEO, and Steven A. Zabel as CFO, with a focus on strategic leadership and operational excellence [151][152].