Colonial Life & Accident Insurance Company
| Company type | Subsidiary |
|---|---|
| Industry | Insurance |
| Founded | 1939 |
| Founder | Edwin Averyt |
| Headquarters | Columbia , United States |
Area served | 49 states in the United States |
Key people | Timothy G. Arnold (President and CEO) |
| Products | Disability, accident, life, cancer, critical illness, hospital confinement, dental insurance |
| Parent | Unum |
Colonial Life & Accident Insurance Company is a U.S.-based insurance provider located in Columbia, South Carolina. The firm offers a range of insurance products, including disability, accident, life, cancer, critical illness, and hospital confinement coverage throughout 49 states. Established in 1939 by entrepreneur Edwin Averyt, Colonial Life became a fully owned subsidiary of Unum in 1993.
Since January 2015, Timothy G. Arnold has held the roles of President and CEO, steering the company’s expansion and strategic initiatives within the insurance sector.
Independent company
The roots of Colonial Life trace back to 1929 when Edwin Averyt, then working as a bond salesman, was motivated by a colleague’s success in selling accident insurance. After moving to South Carolina to become the regional manager for United Securities Company, Averyt earned commissions that allowed him to secure $3,000 from investors and establish Mutual Accident Company in 1937. Initially, the company marketed $1,000 accident policies priced at $3 per year.
In 1939, Mutual Accident Company transitioned into a stockholder-owned firm and was renamed Colonial Life & Accident Insurance Company. Edwin Averyt led as CEO until 1970 when his son Gayle Averyt took over. By 1985, Colonial Life introduced accident and cancer insurance products payable with pre-tax dollars for employees—these offerings accounted for half of new policy sales by 1990.
In 1989, Colonial Life formed a holding company named Colonial Companies, Inc., under which it became a wholly owned subsidiary. Stephen G. Hall assumed the CEO position in 1991 after serving as president since 1986; he stepped down in early 1992 and was replaced by Frank Smith. Throughout these leadership changes, Gayle Averyt continued as chairman.
Unum subsidiary
In 1993, Unum acquired Colonial Life for $571 million. Following the merger, Unum’s CEO James Orr also took on the role of Colonial Life’s chief executive. In 2003, Colonial Life secured naming rights for the University of South Carolina’s basketball arena through a $5.5 million agreement spanning twelve years, resulting in the Colonial Life Arena. Randall Horn succeeded Jean Duke as president and CEO in 2004.
Celebrating its 75th anniversary in 2014, Colonial Life completed a Habitat for Humanity project. Timothy G. Arnold was named president in July 2014 and advanced to CEO in early 2015. The acquisition of Starmount in 2016 broadened Colonial Life’s offerings to include dental insurance. In 2017, the company inaugurated a new office serving Virginia and Washington, D.C., while also expanding operations within Georgia—demonstrating its targeted growth strategy in key regional markets.
Operations
Colonial Life focuses on voluntary employee insurance solutions such as disability, accident, life, critical illness, hospital confinement, and cancer coverage. These products are distributed via independent agents and brokers.
Based in Columbia, South Carolina, Colonial Life functions as an independent subsidiary within Unum, constituting one of its three principal business divisions. In 2012, Colonial Life accounted for 15% of Unum’s premium revenues. Under Tim Arnold’s leadership as CEO, the company continues to drive strategic growth within the voluntary insurance sector.