Unum(UNM) - 2021 Q4 - Annual Report

Regulation and Compliance - The company is subject to extensive regulation in the U.S., U.K., and Poland, impacting its operations and compliance requirements[113] - The company’s U.S. insurance subsidiaries are regulated under risk-based capital (RBC) standards, which assess the adequacy of statutory capital based on various risk factors[119] - The NAIC has adopted a new RBC structure that increased required capital levels, which have been incorporated into the company's capital plans[120] - The company is monitoring developments related to international insurance regulatory reforms that may influence its capital management strategies[121] - The company is subject to various cybersecurity regulations, including the NAIC's Insurance Data Security Model Law, which requires the establishment of cybersecurity programs[134] - The California Consumer Privacy Act (CCPA) grants Californians rights regarding their personally identifiable information, with significant portions of the Company's business currently exempt from these requirements[135] - The Company continuously monitors federal, state, and foreign legislative and regulatory developments to understand their potential impact on profitability and resources[138] Competition and Market Position - The company faces significant competition in the insurance market, with both traditional and non-traditional competitors affecting pricing and customer retention[108] - The company must attract and retain independent agents and brokers, with strong competition affecting its ability to market products effectively[111] - The company’s financial strength ratings are evaluated by agencies such as AM Best, Fitch, Moody's, and S&P, reflecting its capacity to meet obligations[104] Financial Performance and Assets - As of December 31, 2021, the total assets of the Unum International segment equaled approximately 6% of consolidated assets, and total liabilities also equaled approximately 6% of consolidated liabilities[145] Workforce and Employee Engagement - The Company employed approximately 10,300 employees as of December 31, 2021, with about 88% located in the United States[146] - The voluntary turnover rate increased from 9.4% in 2020 to 15.6% in 2021, remaining below the U.S. finance and insurance industry benchmark of 15.9%[147] - Approximately 80% of employees indicated favorable engagement in the 2021 survey, with 9,784 employees responding[157] - The company has implemented a flex work approach across U.S. locations in early 2022 to support a diverse workforce and employee wellbeing[148] Diversity and Inclusion Initiatives - 66% of the Company's employees identify as female, and 18% (excluding Poland) identify as members of a minority group[150] - The company has a dedicated Office of Inclusion & Diversity to enhance workforce culture and operationalize inclusion through various resources and policies[152] - The company emphasizes customized recruiting experiences and has initiatives to drive diverse hiring, partnering with national diverse organizations[154] - The Accelerated Leadership Program aims to prepare high-potential employees for promotion or strategic lateral movement within 12-18 months[158] - The Multicultural Leadership Development Program focuses on preparing racially diverse employees for higher leadership roles[158] - Continuous coaching sessions between managers and employees are conducted to align activities with company goals[155] - Employee Networks, such as UNITEd and enABLE, play a critical role in advising on inclusion and diversity strategies[152] - The company has embedded inclusion and diversity into performance goals for all people leaders[153] - The Actuarial Development Program and Accounting and Finance Development Program are multi-year rotational programs aimed at developing future leaders[158] - The company regularly conducts confidential employee surveys to gain insights and improve employee engagement[157] Economic and Technological Factors - The company is exposed to risks from economic conditions, including the impact of COVID-19 and fluctuations in interest rates[14] - The company’s ability to develop digital capabilities and execute technology upgrades is critical for maintaining competitive advantage[14] Taxation - The U.K. corporate tax rate is set to increase to 25% effective April 1, 2023, from the previous rate of 19%[141] Reserve Requirements - The company has implemented a staged approach to new reserve requirements, with no material impact on statutory reserves reported[123]