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Unum

22,836 bytes added, 15:14, 22 October 2018
Addition of Irish office in history and corporate structure
{{other uses|Unum (disambiguation)}}
{{Infobox company
| name = Unum
| logo = Unum Group logo.svg
| type = [[Public company|Public]]
| traded_as = {{NYSE|UNM}}<br />[[S&P 500|S&P 500 Component]]
| industry = Employee benefits (disability, life and critical illness insurance)
| location_city = Chattanooga, Tennessee
| key_people = [[Rick McKenney]], [[President (corporate title)|President]] and [[CEO]] <br>Thomas Watjen, [[Chairman of the Board]];<br>Jack McGarry, [[CFO]]
| revenue = $11.047 billion (2016)<ref name=sec>{{cite web|url=https://www.sec.gov/Archives/edgar/data/5513/000000551313000007/unm12312012-10xk.htm|title=Unum Group 10-K|publisher=United States Securities & Exchange Commission|year=2013|accessdate=18 May 2014}}</ref>
| operating_income =
| net_income = $934.1 million (2016)<ref name=sec/>
| num_employees = 9,400 (2016)<ref name=sec/>
| homepage = {{url|http://www.unum.com}}
}}

'''Unum Group''' is a [[Chattanooga, Tennessee]]-based [[Fortune 500]]<ref>{{cite web|url=http://investors.unum.com/Cache/1001220386.PDF?Y=&O=PDF&D=&fid=1001220386&T=&iid=103324|title=Unum Group 10-K 2016|last=|first=|date=|website=|publisher=Unum Group|archive-url=|archive-date=|dead-url=|accessdate=December 3, 2017}}</ref> [[insurance company]] formerly known as UnumProvident.<ref name=portlandpress>{{cite news|title=Unum Provident's new name has familiar ring to it: Unum ; A relaunch of the company returns to the Maine name used before a 1999 merger|author=Edward D. Murphy|date=17 January 2007|work=Portland Press Herald}}</ref> Unum Group was created by the 1999 merger of Unum Corporation and The Provident Companies<ref name=portlandpress/> and comprises three distinct businesses{{snd}} Unum US, Unum UK, and [[Colonial Life]]. Its underwriting insurers include The Paul Revere Life Insurance Company and Provident Life and Accident Insurance Company.<ref name=sec/> Unum is the top [[disability insurance|disability insurer]] in both the United States and United Kingdom<ref>{{cite web|url=http://www.hoovers.com/company-information/cs/company-profile.Unum_Group.eb0bfbc804952094.html|title=Unum Group Company Information|publisher=Hoovers|accessdate=18 May 2014}}</ref> and also offers other insurance products including [[accidental death and dismemberment insurance|accident]], [[critical illness insurance|critical illness]] and [[life insurance]].<ref name=forbes2013>{{cite web|url=https://www.forbes.com/companies/unum-group/|title=Unum Group|publisher=Forbes|accessdate=18 May 2014}}</ref>

As of December 2016, Unum had 9,400 full-time employees and annual revenues of $11.047 billion.<ref>{{Cite web|url=http://investors.unum.com/Cache/1001220386.PDF?Y=&O=PDF&D=&fid=1001220386&T=&iid=103324|title=Unum Group 10-K 2016|last=|first=|date=February 1, 2017|website=|archive-url=|archive-date=|dead-url=|access-date=December 3, 2017}}</ref> Richard McKenney has led Unum as its [[chief executive officer|CEO]] since April 1, 2015.<ref name="pp2003">{{cite news|url=http://www.chattanoogan.com/2015/2/3/293332/Unum-Announces-Richard-McKenney-As-New.aspx|title=Unum Announces Richard McKenney As New CEO As Thomas Watjen Retires|first=|date=February 3, 2015|work=The Chattanoogan|access-date=December 3, 2017|archive-url=|archive-date=|dead-url=}}</ref>

==History==

===Founding as Unum corporation===
Union Mutual Life Insurance was incorporated in 1848 in [[Maine]].<ref name=journal>{{cite book|url=https://books.google.com/books?id=UARQAAAAYAAJ&pg=PA539&lpg=PA539&dq=%22union+mutual+life+insurance%22+AND+%22elisha+b.+pratt%22&source=bl&ots=BE9-7HxWLW&sig=U5ThBu35zlLQZ1DWAGdnGb9T1II&hl=en&sa=X&ei=CJPZUtjtNobQkQec_4GACA&ved=0CE4Q6AEwBQ#v=onepage&q=%22union%20mutual%20life%20insurance%22%20AND%20%22elisha%20b.%20pratt%22&f=false|title=Chamber of Commerce Journal of Maine|volume=17}}</ref> The company issued its first policy, which covered the life of founder and company president Elisha B. Pratt for $5000, on October 1, 1849.<ref name=journal/> Union Mutual's principal office at the time was located in [[Boston|Boston, Massachusetts]], where Pratt resided.<ref name=journal/><ref name="unum group">{{cite news|title=Unum Group|series=International Directory of Company Histories|editor=Jay P. Pederson|volume=137|work=St. James Press|year=2012|pages=495–504}}</ref> Union Mutual remained headquartered in Boston until 1881, when the state of Maine passed a law that required the principal office and headquarters of all insurance companies incorporated by the state to be located within the state.<ref name=journal/> The company relocated to [[Portland, Maine]].<ref name=journal/><ref name="unum group"/>

In 1940, the company acquired most of Massachusetts Accident Company's health and accident insurance business.<ref name="unum group"/> The acquisition was Union Mutual's first expansion beyond individual life and [[Endowment policy|endowment insurance]].<ref name="unum group"/><ref name=pp1998>{{cite news|title=Unum's First 150 Years|date=24 November 1998|work=Portland Press Herald}}</ref> In 1969, Union Mutual established the insurance industry's first downstream [[holding company]], which facilitated the company's continued expansion and diversification.<ref name=brenner>{{cite news|title=Union Mutual Likes Its Change into Publicly Held Unum Life|author=Lynn Brenner|date=31 March 1987|work=American Banker}}</ref><ref>{{cite web|url=http://www.soa.org/library/proceedings/record-of-the-society-of-actuaries/1975-79/1977/january/rsa77v3n15.aspx|title=Financial Resource Management, Mutual Companies|publisher=Record of Society of Actuaries|year=1997|volume=3|number=1|accessdate=18 May 2014}}</ref> Union Mutual also established its group [[disability insurance|disability]] business in the 1960s.<ref name="unum group"/><ref name=pp1998/> Group disability would become the company's flagship product.<ref name=pp98>{{cite news|title=Unum, Provident will merge The insurance giant will exploit the strengths of each company and their differing client niches|author=Dean Lunt|date=24 November 1998|work=Portland Press Herald}}</ref><ref>{{cite web|url=https://www.nytimes.com/1998/11/24/business/2-leading-us-disability-insurers-plan-merger.html|title=2 Leading U.S. Disability Insurers Plan Merger|author=Joseph B. Treaster|publisher=The New York Times|date=24 November 1998|accessdate=18 May 2014}}</ref>

Union Mutual became the first major [[mutual insurance]] company to demutualize in 1986.<ref name="unum group"/> Company CEO Colin Hampton had been pushing for demutualization since 1970 and the company formally began the process of converting to a publicly held company in January 1985.<ref name="unum group"/><ref>{{cite web|url=http://www.csmonitor.com/1985/0211/funion.html|title=Old-line mutual insurer shifting to shareholder-owned|author=Thomas Watterson|publisher=The Christian Science Monitor|date=11 February 1995|accessdate=18 May 2014}}</ref> Union Mutual, now renamed Unum, began trading on the [[New York Stock Exchange]] in November 1986.<ref name=brenner/>

The company also began selling off underperforming businesses during the 1980s.<ref name="unum group"/> From 1982 to 1990, Unum abandoned many insurance products, including medical insurance, individual life insurance, general investment contracts, and individual annuities and pensions.<ref name="unum group"/> Under the leadership of then-CEO James Orr, the company turned its focus to long-term group disability insurance.<ref name="unum group"/>

In March 1990, Unum acquired National Employers Life Assurance Holdings, which at the time was the [[United Kingdom|United Kingdom's]] largest disability insurer.<ref>{{cite news|title=Unum TO retain NEL Permanent Health Insurance and hive off the rest OF National Employers Life Assurance|author=Mark Downing|date=4 October 1990|work=Post Magazine}}</ref> The company later acquired Duncanson & Holt, a [[reinsurer]] and insurance [[underwriter]] for the accident and health insurance sectors.<ref>{{cite news|title=Business Briefs|date=3 August 1992|work=The Wall Street Journal}}</ref> In 1993, Unum acquired the Colonial Companies, parent company of [[Colonial Life & Accident Insurance Company]].<ref name=nyt1992>{{cite news|title=Company News; Unum to Buy Colonial in $570 Million Stock Deal|agency=Reuters|date=5 December 1992|work=The New York Times}}</ref> Colonial focused on individual insurance products, including accident, cancer and life insurance policies.<ref name=nyt1992/> Unum began offering individual disability policies under the Unum brand once again in 1995.<ref name="unum group"/>

===Growth as the Provident companies===
The Provident companies was founded in [[Chattanooga, Tennessee]] in May 1887 as Mutual Medical Aid and Accident Insurance Company. The company originally specialized in providing both medical-aid and accident insurance to employees in high-risk industries, including miners and coal workers.<ref name=tennessee>{{cite web|url=http://tennesseeencyclopedia.net/entry.php?rec=821|title=Maclellan Building|publisher=The Tennessee Encyclopedia of History and Culture|accessdate=18 May 2014}}</ref> Within a few months, the company’s founders became concerned that a single disease epidemic would bankrupt the company. Mutual Medical Aid and Accident purchased back all outstanding medical-aid policies and reincorporated as Provident Accident Insurance Company. Provident only issued accident policies.

In 1892, Thomas Maclellan and John McMaster purchased a 50% stake in the company for $1000. The two men purchased the remaining 50% equity in 1895 and Maclellan was the company's sole owner and president by 1900.<ref name=tennessee/> Maclellan reorganized the company from being mutually held to a stock company in 1910.

Thomas Maclellan served as president of Provident until he was struck by an automobile and unexpectedly died 1916.<ref name=chattanoogan>{{cite web|url=http://www.chattanoogan.com/2005/6/24/68666/Maclellans-Have-Long-Been-Associated.aspx|title=Maclellans Have Long Been Associated With Provident Insurance|publisher=The Chattanoogan|date=24 June 2005|accessdate=18 May 2014}}</ref> Robert Maclellan, the son of Thomas, assumed the presidency of Provident following his father's death.<ref name=chattanoogan/><ref name=hooverprovident>{{cite web|url=http://www.hoovers.com/company/Unum_Group/jfyjxi-1-1njhxk.html|title=History|publisher=Hoovers|accessdate=18 May 2014}}</ref> Provident began selling life insurance the following year, in 1917, and the first life insurance policy issued by the company covered Robert Maclellan's life.<ref name=hooverprovident/> The company also began offering railroad insurance.<ref name=hooverprovident/>

Provident wrote its first group policy in 1924. The company expanded its operations with its 1926 acquisition of [[Detroit|Detroit, Michigan]]-based Standard Accident Company. Provident operated in 34 states by 1928. It also acquired Southern Surety Company in 1931 and Meridian Insurance of [[West Virginia]] in 1938.<ref name=hooverprovident/> The company expanded into Canada in 1948.<ref name=hooverprovident/>

In November 1993, J. Harold Chandler became president and chief executive officer of Provident.<ref name=wsj1993>{{cite news|title=Provident Life & Accident Insurance Co.|date=11 November 1993|work=The Wall Street Journal}}</ref> Chandler had previously served as a senior executive at [[NationsBank]].<ref name=wsj1993/> Chandler initiated a company-wide restructuring at Provident, which included the 1995 sale of its health-related business to Healthsource for $231 million.<ref>{{cite news|title=Health Brief -- Healthsource Inc.: Provident Life Businesses Acquired for $231 Million|date=2 June 1995|work=The Wall Street Journal}}</ref> Provident also increased its focus on individual disability and life policies with the 1997 acquisition of the Paul Revere Corporation, a [[Worcester, Massachusetts]]-based provider of individual disability insurance, from [[Textron]] for $1.2 billion.<ref name=mbj1997>{{cite news|title=Disability insurance competitors join forces to capture nearly half of country's market|author=Kelly Russell|date=25 August 1997|work=Mississippi Business Journal}}</ref> The purchase of Paul Revere made Provident the nation's largest provider of individual disability policies.<ref name=mbj1997/>

===Unum Group (1999–present)===
Unum and Provident announced their intention to merge in November 1998.<ref name=pp98/> When the merger was completed in 1999, the new company, named UnumProvident, was the United States' largest disability insurance provider.<ref name=ctimes1999>{{cite news|title=Chattanooga, Tenn.-Based Insurer Provident to Finalize Merger with Unum|author=Mike Pare|date=30 June 1999|work=KRTBN Knight-Ridder Tribune Business News: Chattanooga Times/Free Press - Tennessee}}</ref> Then-Unum chairman and chief executive James Orr was retained in as chairman and CEO of UnumProvident, which was headquartered in [[Portland, Maine]].<ref name=ctimes1999/>

Company Chief Operating Officer J. Harold Chandler, who had served as Provident's chief executive prior to the merger, succeeded Orr as UnumProvident CEO in November 1999.<ref>{{cite news|title=UnumProvident CEO Orr exits early James F. Orr III, widely credited with building the firm, leaves in a trouble-filled time|author=Dean Lunt|date=2 November 1999|publisher=Portland Press Herald}}</ref> The company sold Provident National Assurance, a holding company for its life insurance and variable annuity business, to [[Allstate]] in 2001.<ref>{{cite news|title=Lake County Briefs|date=10 February 2001|work=Chicago Daily Herald}}</ref> In 2002, UnumProvident relocated its headquarters from Portland, Maine to [[Chattanooga, Tennessee]].<ref name=knoxville>{{cite news|title=In Brief|date=9 January 2002|work=The Knoxville News-Sentinel}}</ref> The former Provident Companies was headquartered in Chattanooga.<ref name=knoxville/>

Unum received negative attention in 2002, when California regulators fined Unum, and alleged that the company inappropriately denied long-term disability insurance claims.<ref>{{cite web |first=Peter G. |last=Gosselin |url=http://www.latimes.com/news/nationworld/washingtondc/la-fi-disability3oct03,0,3303715.story |title=State Fines Insurer, Orders Reforms in Disability Cases |date=3 October 2005 |work=Los Angeles Times |publisher=Tribune Company |accessdate=27 December 2009}}</ref> Unum stated that "only 2% of the policyholders who filed a claim with the company last year [2001] were found not to be disabled, an amount consistent with prior experience."<ref>{{cite web |url=http://phx.corporate-ir.net/phoenix.zhtml?c=112190&p=irol-newsArticle&ID=357576&highlight= |title=UnumProvident Rebuffs Recent Media Allegations; Calls Attention to Facts |date=18 November 2002 |publisher=UnumProvident |accessdate=1 February 2007}}</ref>

UnumProvident acquired Sun Life Financial's [[United Kingdom]]-based group insurance business in 2003.<ref name=brief>{{cite news|title=In Brief: Sun Life Closes Sale Of Its U.K. Group Biz|date=4 March 2003|work=American Banker}}</ref> [[Thomas Watjen]] replaced Orr as UnumProvident’s chief executive later that year.<ref name=pp2003/> The company also sold its Japanese and Argentine businesses.<ref name=brief/>

In 2004, Unum entered into a regulatory settlement agreement (RSA) with insurance regulators in over 40 states.<ref>{{cite news|title=States approve UnumProvident deal ; Forty states agree to the settlement, more than enough to put it into effect, the company says|date=22 December 2004|work=Portland Press Herald}}</ref> The settlement related to Unum's handling of disability claims and required the company "to make significant changes in corporate governance, implement revisions to claim procedures and provide for a full re-examination of both reassessed claims and disability insurance claim decisions after the January 2005 effective date of the RSA."<ref name=fednews>{{cite news|title=Division of Insurance Completes Review of Unum Group Disability Claims Payments, Returns $13 Million to Massachusetts Consumers|date=15 April 2008|work=US Fed News}}</ref> The review was completed in 2008, and resulted in a 41.7% reversal, "in whole or part", and an additional $676.2 million of benefits paid nationwide by Unum.<ref name=Maine2008>{{cite web|url=http://www.maine.gov/tools/whatsnew/index.php?topic=INS-PressReleases&id=54160 |title=UNUM Landmark Multi-State Settlement Agreement and Examinations Concluded |publisher=Department of Professional & Financial Regulation |date=April 15, 2008}}</ref> The state of Maine press release announcing the result, praised regulators for their work, and the company for coming into compliance.<ref name=Maine2008/>

In 2007, UnumProvident was renamed Unum.<ref name=poovey>{{cite news|title=Insurer UnumProvident shortening its name to Unum|author=Bill Poovey|date=16 January 2007}}</ref> The Unum moniker was last used by the Unum Corporation prior to the 1999 merger.<ref name=poovey/> In 2012 and 2013, Unum partnered with the [[Consumer Federation of America]] to release reports which examined the use of disability insurance by American workers.<ref name=bucks>{{cite web|url=http://bucks.blogs.nytimes.com/2012/05/01/most-workers-lack-disability-insurance-survey-finds/|title=Most Workers Lack Disability Insurance, Survey Finds|author=Ann Carrns|publisher=The New York Times|date=1 May 2012|accessdate=18 May 2014}}</ref><ref name=freepress>{{cite web|url=http://www.timesfreepress.com/news/2013/sep/24/study-shows-critical-need-workplace-disability-ins/|title=Study shows critical need for workplace disability insurance|author=Dave Flessner|publisher=Times Free Press|date=24 September 2013|accessdate=18 May 2014}}</ref> According to numbers released by the [[Bureau of Labor Statistics]] that were cited by the report, two-thirds of American workers do not carry disability insurance policies.<ref>{{cite web|url=http://www.bls.gov/ncs/ebs/benefits/2011/ownership/private/table12a.htm|title=Employee Benefits Survey|publisher=United States Department of Labor|accessdate=18 May 2014}}</ref> In addition, the report found that, among other things, workers know little about disability insurance, despite expecting financial hardship if they were to become unable to work.<ref name=bucks/><ref name=freepress/>

The company was involved with the UK's controversial [[Welfare Reform]] Bill in 2007 and was investigated by the BBC in England at that time.<ref>Loukas Christodoulou [http://www.corporatewatch.org.uk/?lid=2940 Welfare or Wealth Care?] [[Corporate Watch]] May 14, 2007</ref><ref>Jonathan Rutherford [http://www.compassonline.org.uk/article.asp?n=563&offset=20 New Labour and the end of welfare], Compass Online April 25, 2007</ref><ref>[http://news.bbc.co.uk/player/nol/newsid_7080000/newsid_7082100/7082194.stm "'Rogue' firm advising in UK"], ''[[BBC]]'', June 6, 2007</ref>

In 2008 Unum opened their IT centre of excellence in Carlow, Republic of Ireland.

==Corporate structure==
[[File:Unum Worcester.JPG|thumb|right|Unum Group's Worcester office at One Mercantile Place in downtown [[Worcester, Massachusetts]]]]
Unum is headquartered in Chattanooga, Tennessee.<ref name=sec/> The company has additional offices in Portland, Maine; [[Columbia, South Carolina]]; Worcester, Massachusetts; [[Glendale, California]]; [[Milton Court]], [[Dorking]], [[Surrey]], England; and at [[Carlow]], [[County Carlow|Co. Carlow]], [[Ireland]].<ref name=sec/> Thomas Watjen served as Unum president and chief executive from 2003 until his retirement in 2015. Watjen became Chairman of the Unum Board of Directors on May 21, 2015. He was succeeded as President and CEO by Richard McKenny.

Unum is divided into three business segments: Unum US, Unum UK and Colonial Life.<ref name=sec/> It provides disability insurance, as well as group benefits, life insurance and other services.<ref name=forbes2013/><ref>{{cite web|url=http://www.hoovers.com/company/Unum_Group/jfyjxi-1-1njhxf.html|title=Overview|publisher=Hoovers|accessdate=18 May 2014}}</ref>

==Awards==
*Forbes' America's 100 Most Trustworthy Companies 2013<ref name=forbes2012>{{cite web|url=https://www.forbes.com/sites/jacquelynsmith/2012/04/04/americas-most-reputable-companies/|title=America's Most Reputable Companies|author=Jacquelyn Smith|publisher=Forbes|date=4 April 2012|accessdate=18 May 2014}}</ref>
*Forbes' America's Most Reputable Companies 2012–2013<ref name=forbes2012/><ref>{{cite web|url=https://www.forbes.com/sites/jacquelynsmith/2013/04/24/americas-most-reputable-companies-2/|title=America's Most Reputable Companies|author=Jacquelyn Smith|publisher=Forbes|date=24 April 2013|accessdate=18 May 2014}}</ref>
*Newsweek's Green Companies 2012<ref>{{cite web|url=http://www.newsweek.com/2012/10/22/newsweek-green-rankings-2012-u-s-500-list.html|title=Green Rankings 2012: U.S. Companies|publisher=Newsweek|accessdate=18 May 2014}}</ref>
*Center for Political Accountability recognition 2011<ref>{{cite web|url=http://www.politicalaccountability.net/index.php?ht=a/GetDocumentAction/i/5067|title=CPA Hits Milestone as 85 Companies Adopt Political Disclosure and Accountability|publisher=Center for Political Accountability|accessdate=18 May 2014}}</ref>
*Dow Jones Sustainability North American Index 2010-2012<ref name=unum>{{cite web|url=http://www.unumgroup.com/About/Awards.aspx|title=Awards & recognition|publisher=Unum Group|accessdate=18 May 2014}}</ref>
*Human Rights Campaign Corporation Index 2009-2011<ref>{{cite news|title=Corporate Equality Index|publisher=Human Rights Campaign Foundation|date=2009}}</ref><ref>{{cite web|url=http://issuu.com/hrcworkplace/docs/hrc_corporate_equality_index_2010|title=Corporate Equality Index|publisher=Human Rights Campaign Foundation|date=2010|accessdate=18 May 2014}}</ref><ref>{{cite web|url=http://issuu.com/humanrightscampaign/docs/hrc-cei-2011-final|title=Corporate Equality Index|publisher=Human Rights Campaign Foundation|date=2011|accessdate=18 May 2014}}</ref>
*UK Corporate Adviser Awards – Best Group Risk Provider 2012–2013<ref name=unum/>
*UK Health Insurance Awards – Best Group Risk Provider 2011–2012<ref name=unum/>
*UK Cover Excellence Awards – Best Group Income Protection 2011<ref name=unum/>


==See also==
{{Portal|United States}}
* [[List of United States insurance companies]]

==References==
{{reflist|35em}}

==External links==
* [http://www.unum.com/ www.unum.com]
{{Finance links
| name = Unum
| symbol = UNM
| sec_cik = UNM
| yahoo = UNM
| google = UNM
}}
[[Category:Companies listed on the New York Stock Exchange]]
[[Category:Insurance companies of the United States]]
[[Category:Companies based in Chattanooga, Tennessee]]
[[Category:Financial services companies established in 1999]]
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