Unum

Unum Group
Company type	Public
Industry	Insurance
Predecessor	Union Mutual, The Provident Companies, Unum Corporation
Founded	1848; 178 years ago
Founder	Elisha B. Pratt (founder of Union Mutual)
Headquarters	Chattanooga, United States
Area served	United States, United Kingdom, Poland, Ireland
Key people	Richard McKenney (CEO)
Products	Disability insurance, accident insurance, critical illness insurance, life insurance, workplace absence management, mental health support services
Revenue	$11.991 billion (2022)
Number of employees	11000 (2022)
Website	www.unum.com

Unum Group (presented as uṅu̇ṁ) is a U.S.-based insurance company with its headquarters located in Chattanooga, Tennessee. Originally established as Union Mutual in 1848 and operating under the name UnumProvident between 1999 and 2007, it is recognized as a Fortune 500 enterprise. The current Unum Group was created through the 1999 merger of Unum Corporation and The Provident Companies. Its operations are divided into four key segments: Unum US, Unum UK, Unum Poland, and Colonial Life. Among its underwriting entities are The Paul Revere Life Insurance Company and Provident Life and Accident Insurance Company.

By 2018, Unum had become the third-largest provider of disability insurance in the United States. Its range of products encompasses disability, accident, critical illness, life insurance, workplace absence management, and mental health support services. In 2022, the company covered nearly 45 million people through group insurance plans and reported revenues totaling $11.991 billion.

Origins as Unum Corporation

Incorporated in 1848 in Maine, Union Mutual Life Insurance issued its inaugural policy on October 1, 1849, insuring founder and president Elisha B. Pratt for $5,000. Initially based in Boston, Massachusetts, the firm relocated its main office to Portland, Maine in 1881 following a state mandate requiring insurance companies incorporated in Maine to maintain their principal office within the state.

Union Mutual broadened its offerings beyond individual life and endowment insurance in 1940 by acquiring the majority of Massachusetts Accident Company's health and accident insurance operations. In 1969, it pioneered the industry's first downstream holding company structure to support further growth and diversification. The company introduced its group disability insurance line during the 1960s, which eventually became its leading product.

In 1986, Union Mutual became the first prominent mutual insurer to convert into a publicly traded company. This transition was championed by CEO Colin Hampton since 1970, with the demutualization process commencing in 1985. Renamed Unum, it began trading on the New York Stock Exchange in November of that year. Throughout the 1980s under CEO James Orr’s leadership, Unum streamlined operations by divesting non-core businesses and concentrating on long-term group disability insurance.

Unum expanded internationally by acquiring National Employers Life Assurance Holdings—the largest disability insurer in the United Kingdom—in March 1990. Additional acquisitions included reinsurer Duncanson & Holt and Colonial Companies (parent firm of Colonial Life & Accident Insurance Company) in 1993, enhancing Unum’s portfolio with individual accident, cancer, and life insurance products. By 1995, Unum reintroduced individual disability insurance policies under its own brand name.

Development of The Provident Companies

Established in May 1887 in Chattanooga, Tennessee as Mutual Medical Aid and Accident Insurance Company, Provident initially focused on medical-aid and accident coverage tailored to high-risk sectors like mining. Due to concerns over epidemic-related risks, the company soon shifted exclusively to accident insurance and reincorporated as Provident Accident Insurance Company.

In 1892, Thomas Maclellan and John McMaster purchased a half interest for $1,000 and became sole proprietors by 1895. Maclellan assumed presidency by 1900 and transitioned Provident from a mutual to a stock company in 1910. After his passing in 1916, leadership passed to his son Robert Jardine Maclellan.

Provident diversified its offerings by adding life insurance in 1917—issuing its first policy on Robert Maclellan’s life—and soon after introduced railroad insurance products. The company issued its initial group policy in 1924 and expanded through acquisitions including Standard Accident Company (Detroit) in 1926, Southern Surety Company in 1931, and Meridian Insurance of West Virginia in 1938. By 1928 Provident operated across 34 states and extended its reach into Canada by 1948.

In November 1993, J. Harold Chandler took on the role of president and CEO after a career at NationsBank. Under his direction, Provident underwent restructuring that involved selling its health-related business to Healthsource for $231 million in 1995. The company sharpened its focus on individual disability and life insurance with a $1.2 billion acquisition of Paul Revere Corporation—a Worcester-based disability insurer—from Textron in 1997. This move established Provident as the largest U.S. provider of individual disability insurance policies.

Unum Group (1999–present)

In 1999, Unum combined forces with Provident of Chattanooga, Tennessee, creating UnumProvident, which became the largest disability insurance provider in the United States. James Orr, who was the chairman and CEO of Unum at the time, took charge of the newly formed company based in Portland, Maine. Later that same year, J. Harold Chandler, formerly CEO of Provident, replaced Orr as CEO. In 2001, UnumProvident divested its life insurance and variable annuity operations to Allstate and moved its headquarters to Chattanooga by 2002.

California regulators imposed fines on Unum in 2002 due to accusations regarding wrongful denial of long-term disability claims. The company asserted that only 2% of claimants were found not to be disabled, a figure consistent with their historical data. In 2003, UnumProvident expanded by acquiring Sun Life Financial’s UK group insurance division and appointed Thomas Watjen as CEO. During this period, it also exited its businesses in Japan and Argentina.

A regulatory agreement reached in 2004 with more than 40 states required substantial reforms in corporate governance and claims handling procedures. By 2008, a reassessment revealed a 41.7% reversal rate on reviewed claims and resulted in $676.2 million in additional benefits paid nationwide, demonstrating progress toward regulatory compliance. The firm was also involved in controversy surrounding the UK’s Welfare Reform Bill in 2007.

The company rebranded as Unum in 2007 and collaborated with the Consumer Federation of America between 2012 and 2013 to shed light on the widespread lack of disability insurance among American workers. Studies showed that approximately two-thirds of U.S. employees were uninsured against disability risks despite financial vulnerability.

Unum bolstered its technological infrastructure by inaugurating an IT center of excellence in Carlow, Ireland in 2008 and committed significant resources to digital transformation initiatives across its global operations over the subsequent decade.

Since April 2015, Richard McKenney has held the CEO position. Under his guidance, Unum UK entered the dental insurance sector through acquisitions of National Dental Plan and Starmount Life during 2015 and 2016. As of December 2016, Unum employed about 9,400 full-time personnel and reported annual revenues surpassing $11 billion.

From 2019 onward, Unum Group has been consistently recognized on The Civic 50 list by Points of Light for its corporate social responsibility efforts. In 2022, the company provided insurance coverage to nearly 45 million individuals worldwide, employed close to 11,000 people, and generated revenues totaling $11.991 billion.

In 2023, Colonial Life, a subsidiary of Unum, launched Gathr—a human resources technology and benefits administration platform aimed at small businesses—broadening both its product offerings and market presence.

Corporate structure and company culture

Unum Group’s headquarters are located in Chattanooga, Tennessee, with additional offices throughout the United States, United Kingdom, Poland, and Ireland. Thomas Watjen served as president and CEO from 2003 until his transition to Chairman of the Board in 2015; Richard McKenney then assumed the CEO role.

The organization is structured into five primary business units: Unum US, Unum UK, Unum Ireland, Unum Poland, and Colonial Life. It stands as a prominent global provider of employee benefits including group disability insurance, life insurance products, and associated services.

During the 2010s, Unum collaborated with Oxford Economics to conduct research on employee engagement and retention strategies that informed corporate policies designed to strengthen workforce loyalty. The company maintains ongoing efforts to promote inclusivity, ensure regulatory compliance and security standards, and advance environmental sustainability initiatives.

Unum actively engages with community programs such as the Maine Heart Walk; in 2021 COO Mike Simonds served as chair for this event. The company has earned accolades on Forbes’ lists recognizing America’s Best Large Employers and Best Employers for Diversity and has been named among Ethisphere’s World’s Most Ethical Companies each year since 2021.

Awards

Recognized by Forbes as one of America's 100 Most Trustworthy Companies in 2013
Featured in Forbes' America's Most Reputable Companies for 2012 and 2013
Included in Newsweek's Green Companies list in 2012
Honored by the Center for Political Accountability in 2011
Listed on the Dow Jones Sustainability North American Index from 2010 through 2012
Rated on the Human Rights Campaign Corporate Equality Index from 2009 to 2011 and named among the Best Places to Work for LGBTQ+ Equality in 2022
Awarded Best Group Risk Provider by UK Corporate Adviser Awards in 2012 and 2013
Received Best Group Risk Provider at the UK Health Insurance Awards for 2011 and 2012
Earned Best Group Income Protection at the UK Cover Excellence Awards in 2011

External links

www.unum.com