Unum Group, together with its subsidiaries, provides group and individual disability insurance products and services primarily in the United States and the United Kingdom. It operates through Unum US, Unum UK, Colonial Life, and Closed Block segments. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other products. The company sells its products primarily to employers for the benefit of employees. Unum Group sells its products through field sales personnel, independent brokers, and consultants, as well as independent contractor agency sales force. The company was founded in 1848 and is based in Chattanooga, Tennessee.
Business Analysis of Unum Group
The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Unum Group compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Unum Group to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Unum Group with an interactive chart.
- Revenue Growth: Unum Group reported a revenue growth of 2.9% year-on-year during 2016. Diversified Insurance Industry grew at 0.6% in the same period
- COGS share of Revenues: As a percentage of revenue, Unum Group spent 62.8% of its total revenues on COGS. Diversified Insurance industry average (COGS share of revenue) in the same period was 54.2%
- R&D share of Revenues: Unum Group R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Unum Group spent 9.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Diversified Insurance industry average SG&A spending in the same period was 21.6%
- Inventory share of Revenues: Unum Group Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, Unum Group invested 3.7% of its total revenues on Accounts Payable (A/P) Diversified Insurance industry average Accounts Payable investment in the same period was 12.0%
- Accounts Receivable share of Revenues: As a percentage of revenue, Unum Group invested 58.6% of its total revenues on Accounts Receivable (A/R). Diversified Insurance industry average Accounts Receivable investment in the same period was 37.0%
- PP&E share of Revenues: As a percentage of revenue, Unum Group invested 4.5% of its total revenues on Property, Plants, and Equipments (PP&E). Diversified Insurance industry average PPE investment in the same period was 3.4%
- Intangibles share of Revenues: As a percentage of revenue, Unum Group invested 3.0% of its total revenues on Intangibles. Diversified Insurance industry average Intangibles investment in the same period was 6.9%
- Net Margins: Unum Group Net Margins in the year 2016 were 8.4%. Diversified Insurance industry average Net Margins in the same period were 10.2%
Sector and Industry Association of Unum Group
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Unum Group is associated with Financials Sector Group, Insurance Sector, and Diversified Insurance Industry.
Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:
- Life Insurance industry includes companies engaged principally in life insurance.
- Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
- Surety & Title Insurance industry includes companies providing title & surety insurance.
- Insurance Brokerage industry includes insurance brokers and agencies.
- Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.
Industry Ranking of Unum Group
With $11 billion revenues, Unum Group ranked number 3 of all the companies in the US Diversified Insurance industry. There were a total of 7 public companies in the US Diversified Insurance industry that had revenues greater than $50 million during 2016.
The top companies in the US Diversified Insurance industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.