Unum Group - FORM 8-K - EX-99.2

Attached files

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8-K - Unum Group	unm6302012cover8-k.htm
EX-99.1 - Unum Group	unm6302012exhibit9911.htm

Exhibit 99.2

Unum Group

Statistical Supplement Second Quarter 2012

TABLE OF CONTENTS

(dollars in millions, except share data and where noted)

Results are Unaudited



		Page
	Financial Highlights	1
	Consolidated Statements of Income	2
	Sales Data by Segment	3
	Consolidated Balance Sheets	4
	Financial Results by Segment	5
	Quarterly Historical Financial Results by Segment	6
	Financial Results and Selected Statistics by Segment
	Unum US	7
	Unum UK	8
	Colonial Life	9
	Closed Block	10
	Corporate	11
	Reserves	12
	Investment Fact Sheets	13
	Statutory-Basis Financial Information	14
	Notes to Statistical Supplement	15

	Segment operating results exclude net realized investment gains or losses, non-operating retirement-related gains or losses, and income tax.

	See "Notes to Statistical Supplement" on page 15 for a discussion of non-GAAP financial measures and significant transactions and events.

	N.M. = not a meaningful percentage

Unum Group Financial Highlights



	Three Months Ended						Six Months Ended				Year Ended
	6/30/2012			6/30/2011			6/30/2012		6/30/2011		12/31/2011			12/31/2010		12/31/2009
				As Adjusted					As Adjusted		As Adjusted
Financial Results

Premium Income	$	1,927.6		$	1,875.0		$	3,849.5	$	3,744.5	$	7,514.2		$	7,431.4	$	7,475.5

Segment Operating Revenue	$	2,620.0		$	2,568.1		$	5,218.9	$	5,116.0	$	10,282.9		$	10,168.5	$	10,079.3
Net Realized Investment Gain (Loss)	(2.1		)	(3.6		)	10.3		11.6		(4.9		)	24.7		11.7

Total Revenue	$	2,617.9		$	2,564.5		$	5,229.2	$	5,127.6	$	10,278.0		$	10,193.2	$	10,091.0

Net Income	$	216.4		$	227.6		$	430.3	$	451.2	$	284.2		$	878.7	$	847.3

Assets							$	60,678.7	$	57,305.3	$	59,555.2		$	56,602.7	$	53,778.8

Stockholders' Equity							$	8,385.9	$	8,619.8	$	8,169.7		$	8,484.9	$	8,045.0

Effective January 1, 2012 we adopted an accounting standards update regarding the capitalization of costs associated with the acquisition of insurance contracts (ASU 2010-26) and applied the amendments retrospectively, adjusting all prior period information presented in this statistical supplement, as applicable.

Our reporting segments are comprised of Unum US, Unum UK, Colonial Life, Closed Block, and Corporate. Effective with the fourth quarter of 2011 we modified our reporting segments to reclassify our long-term care products from the Unum US segment to the Closed Block segment. We also reclassified our other insurance products not actively marketed which were previously reported in the Corporate and Other segment to the Closed Block segment. Also, we previously allocated the amortization of prior period actuarial gains or losses, a component of the net periodic benefit costs for our pensions and other postretirement benefit plans, to our Corporate segment. During the first quarter of 2012, we determined that we would modify our segment reporting, effective January 1, 2012, to exclude the amortization of prior period actuarial gains or losses from operating income or operating loss by segment. Prior period segment results have been adjusted to conform to these changes.

2011

Year ended 12/31/2011 results include the following:


•	A deferred acquisition costs impairment charge of $196.0 million before tax and $127.5 million after tax related to our long-term care closed block business.


•	A reserve charge of $573.6 million before tax and $372.8 million after tax related to our long-term care closed block business.


•	A reserve charge of $183.5 million before tax and $119.3 million after tax related to our individual disability closed block business.


•	An income tax benefit of $41.3 million resulting from the settlement of our appeal to the Internal Revenue Service related to tax years 1996 to 2004.


•	An income tax charge of $18.6 million resulting from the repatriation of dividends from our U.K. subsidiaries.

2010

Year ended 12/31/2010 results include a tax charge of $10.2 million to reflect the impact of a tax law change.

Unum Group Financial Highlights



	Three Months Ended				Six Months Ended				Year Ended
	6/30/2012		6/30/2011		6/30/2012		6/30/2011		12/31/2011		12/31/2010		12/31/2009
			As Adjusted				As Adjusted		As Adjusted
Per Common Share Information

Net Income
Assuming Dilution	$	0.76	$	0.74	$	1.50	$	1.45	$	0.94	$	2.69	$	2.55
Basic	$	0.76	$	0.74	$	1.50	$	1.46	$	0.94	$	2.70	$	2.56

Dividends Paid	$	0.1050	$	0.0925	$	0.210	$	0.185	$	0.395	$	0.350	$	0.315

Book Value per Share:
As Reported					$	29.94	$	28.41	$	27.91	$	26.80	$	24.25

Excluding Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges					$	25.88	$	25.66	$	24.41	$	24.35	$	21.97

Excluding Foreign Currency Translation Adjustment					$	26.26	$	25.92	$	24.82	$	24.69	$	22.20

Excluding Accumulated Other Comprehensive Income					$	27.80	$	26.94	$	26.33	$	25.69	$	23.20

Price (UNM closing price on last trading day of period)					$	19.13	$	25.48	$	21.07	$	24.22	$	19.52

See "Consolidated Balance Sheets" on page 4 of this statistical supplement for detail on the components of Accumulated Other Comprehensive Income (Loss) excluded from Total Stockholders' Equity in computing the book value per share measures listed above.

At June 30, 2011 and December 31, 2009, As Adjusted Total Stockholders' Equity, Net Unrealized Gain on Securities, Net Gain on Cash Flow Hedges, Foreign Currency Translation Adjustment, and Unrecognized Pension and Postretirement Benefit Costs were $8,619.8 million and $8,045.0 million; $478.2 million and $382.7 million; $355.9 million and $370.8 million; $(79.3) million and $(75.3) million; and $(308.8) million and $(330.7) million, respectively.

1.1

Unum Group Consolidated Statements of Income



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Revenue
Premium Income	$	1,927.6		$	1,875.0		$	3,849.5		$	3,744.5		$	7,514.2		$	7,431.4		$	7,475.5
Net Investment Income	633.5			637.1			1,253.0			1,255.8			2,519.6			2,495.5			2,346.6
Net Realized Investment Gain (Loss)	(2.1		)	(3.6		)	10.3			11.6			(4.9		)	24.7			11.7
Other Income	58.9			56.0			116.4			115.7			249.1			241.6			257.2
Total Revenue	2,617.9			2,564.5			5,229.2			5,127.6			10,278.0			10,193.2			10,091.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,683.2			1,599.4			3,346.1			3,192.4			7,209.5			6,354.1			6,291.6
Commissions	230.8			217.9			463.1			442.2			879.2			855.4			837.1
Interest and Debt Expense - Non-recourse Debt	3.0			2.8			6.0			5.8			11.5			12.9			18.6
Interest and Debt Expense - All Other Debt	32.2			32.3			64.7			67.2			131.8			128.9			106.8
Deferral of Acquisition Costs	(119.2		)	(112.4		)	(236.6		)	(224.6		)	(442.5		)	(422.5		)	(410.9		)
Amortization of Deferred Acquisition Costs	99.2			94.6			198.6			189.6			365.7			373.3			351.9
Impairment of Deferred Acquisition Costs	—			—			—			—			196.0			—			—
Other Expenses	392.3			395.4			780.9			793.1			1,593.5			1,571.2			1,612.0
Total Benefits and Expenses	2,321.5			2,230.0			4,622.8			4,465.7			9,944.7			8,873.3			8,807.1

Income Before Income Tax	296.4			334.5			606.4			661.9			333.3			1,319.9			1,283.9
Income Tax Expense	80.0			106.9			176.1			210.7			49.1			441.2			436.6

Net Income	$	216.4		$	227.6		$	430.3		$	451.2		$	284.2		$	878.7		$	847.3

Average Weighted Shares Outstanding
Basic	283,316,596			306,316,215			286,874,477			309,512,996			302,399,783			325,839,020			331,266,247
Dilutive Securities:
Options and Other Nonvested Stock Awards	424,036			1,094,749			639,293			1,342,396			1,171,250			1,382,036			869,934
Assuming Dilution	283,740,632			307,410,964			287,513,770			310,855,392			303,571,033			327,221,056			332,136,181

Actual Number of Shares Outstanding							280,046,813			303,386,914			292,715,954			316,573,452			331,809,247

Unum Group Sales Data by Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012		6/30/2011		% Change		6/30/2012		6/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009

Unum US	$	161.6	$	148.1	9.1	%	$	356.5	$	321.1	11.0	%	$	707.3	$	643.4	$	683.1

Unum UK	£	15.3	£	14.5	5.5		£	34.9	£	25.5	36.9		£	62.7	£	77.2	£	77.9

Colonial Life	$	85.8	$	85.7	0.1		$	156.9	$	156.3	0.4		$	365.9	$	358.8	$	343.8

Unum Group Sales Data for Unum US Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012		6/30/2011		% Change		6/30/2012		6/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009
Sales by Product
Group Disability, Group Life, and AD&D
Group Long-term Disability	$	36.0	$	38.3	(6.0	)%	$	71.8	$	67.8	5.9	%	$	165.0	$	148.2	$	182.1
Group Short-term Disability	23.6		17.7		33.3		37.0		31.7		16.7		84.9		80.3		83.9
Group Life	45.2		40.9		10.5		78.2		71.7		9.1		185.3		166.9		184.9
AD&D	4.9		3.8		28.9		7.8		6.3		23.8		17.6		18.1		18.7
Subtotal	109.7		100.7		8.9		194.8		177.5		9.7		452.8		413.5		469.6
Supplemental and Voluntary
Individual Disability - Recently Issued	15.3		13.5		13.3		30.2		27.7		9.0		55.6		42.7		51.6
Voluntary Benefits	36.6		33.9		8.0		131.5		115.9		13.5		198.9		187.2		161.9
Subtotal	51.9		47.4		9.5		161.7		143.6		12.6		254.5		229.9		213.5

Total Sales	$	161.6	$	148.1	9.1		$	356.5	$	321.1	11.0		$	707.3	$	643.4	$	683.1

Sales by Market Sector
Group Disability, Group Life, and AD&D
Core Market (< 2,000 lives)	$	83.1	$	74.9	10.9		$	141.5	$	127.3	11.2		$	322.1	$	294.0	$	320.6
Large Case Market	26.6		25.8		3.1		53.3		50.2		6.2		130.7		119.5		149.0
Subtotal	109.7		100.7		8.9		194.8		177.5		9.7		452.8		413.5		469.6

Supplemental and Voluntary	51.9		47.4		9.5		161.7		143.6		12.6		254.5		229.9		213.5

Total Sales	$	161.6	$	148.1	9.1		$	356.5	$	321.1	11.0		$	707.3	$	643.4	$	683.1

3.1

Unum Group Sales Data for Unum UK Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012		6/30/2011		% Change		6/30/2012		6/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009
Group Long-term Disability	$	13.5	$	12.6	7.1	%	$	24.7	$	20.8	18.8	%	$	47.8	$	53.1	$	56.8
Group Life	9.1		9.7		(6.2	)	27.1		16.5		64.2		43.8		57.3		53.8
Supplemental and Voluntary	1.4		1.4		—		3.0		4.0		(25.0	)	8.6		8.8		12.6
Total Sales	$	24.0	$	23.7	1.3		$	54.8	$	41.3	32.7		$	100.2	$	119.2	$	123.2

(in millions of pounds)
Group Long-term Disability	£	8.6	£	7.8	10.3	%	£	15.7	£	12.9	21.7	%	£	29.8	£	34.4	£	36.5
Group Life	5.8		5.8		—		17.3		10.1		71.3		27.5		37.1		33.4
Supplemental and Voluntary	0.9		0.9		—		1.9		2.5		(24.0	)	5.4		5.7		8.0
Total Sales	£	15.3	£	14.5	5.5		£	34.9	£	25.5	36.9		£	62.7	£	77.2	£	77.9

Unum Group Sales Data for Colonial Life Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012		6/30/2011		% Change		6/30/2012		6/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009
Accident, Sickness, and Disability	$	56.7	$	58.4	(2.9	)%	$	103.2	$	105.6	(2.3	)%	$	242.9	$	237.4	$	221.1
Life	16.0		15.0		6.7		29.8		28.3		5.3		65.5		65.7		68.3
Cancer and Critical Illness	13.1		12.3		6.5		23.9		22.4		6.7		57.5		55.7		54.4
Total Sales	$	85.8	$	85.7	0.1		$	156.9	$	156.3	0.4		$	365.9	$	358.8	$	343.8

3.2

Unum Group Consolidated Balance Sheets



	June 30,			December 31,
	2012			2011			2010
Assets				As Adjusted
Investments
Fixed Maturity Securities	$	43,516.9		$	42,486.7		$	40,035.6
Mortgage Loans	1,652.5			1,612.3			1,516.8
Policy Loans	3,048.1			3,051.4			2,996.1
Other Long-term Investments	655.0			639.2			529.3
Short-term Investments	1,441.6			1,423.5			1,163.1
Total Investments	50,314.1			49,213.1			46,240.9

Cash and Bank Deposits	38.0			116.6			53.6
Accounts and Premiums Receivable	1,692.2			1,672.2			1,665.8
Reinsurance Recoverable	4,808.4			4,854.6			4,827.9
Accrued Investment Income	779.5			681.8			669.8
Deferred Acquisition Costs	1,711.2			1,677.1			1,816.1
Goodwill	201.3			201.2			201.2
Property and Equipment	492.2			493.3			476.8
Other Assets	641.8			645.3			650.6
Total Assets	$	60,678.7		$	59,555.2		$	56,602.7

Liabilities
Policy and Contract Benefits	$	1,460.9		$	1,494.0		$	1,565.0
Reserves for Future Policy and Contract Benefits	43,720.8			43,051.9			39,715.0
Unearned Premiums	535.0			433.2			436.7
Other Policyholders' Funds	1,621.0			1,625.9			1,669.7
Income Tax Payable	31.4			38.2			135.7
Deferred Income Tax	256.2			44.7			171.7
Short-term Debt	467.1			312.3			225.1
Long-term Debt - Non-recourse	598.3			632.5			716.9
Long-term Debt - All Other	1,942.0			1,937.7			1,914.4
Other Liabilities	1,660.1			1,815.1			1,567.6
Total Liabilities	52,292.8			51,385.5			48,117.8

Stockholders’ Equity
Common Stock	36.0			35.9			36.5
Additional Paid-in Capital	2,600.1			2,591.1			2,615.4
Accumulated Other Comprehensive Income (Loss)
Net Unrealized Gain on Securities	728.1			614.8			416.1
Net Gain on Cash Flow Hedges	410.6			408.7			361.0
Foreign Currency Translation Adjustment	(108.0		)	(117.6		)	(107.1		)
Unrecognized Pension and Postretirement Benefit Costs	(430.2		)	(444.1		)	(318.6		)
Retained Earnings	6,979.7			6,611.0			6,591.8
Treasury Stock	(1,830.4		)	(1,530.1		)	(1,110.2		)
Total Stockholders’ Equity	8,385.9			8,169.7			8,484.9
Total Liabilities and Stockholders’ Equity	$	60,678.7		$	59,555.2		$	56,602.7

Unum Group Deferred Acquisition Costs by Segment



	Unum US			Unum UK			Colonial Life			Closed Block			Consolidated
Balances at December 31, 2009, as adjusted	$	932.4		$	40.8		$	593.5		$	217.6		$	1,784.3
Capitalized	207.8			15.1			196.8			2.8			422.5
Amortized	(192.6		)	(13.6		)	(150.1		)	(17.0		)	(373.3		)
Adjustment Related to Unrealized Investment Gains/Losses	(3.9		)	—			(12.2		)	—			(16.1		)
Foreign Currency	—			(1.3		)	—			—			(1.3		)
Balances at December 31, 2010, as adjusted	943.7			41.0			628.0			203.4			1,816.1
Capitalized	220.3			15.4			203.1			3.7			442.5
Amortized	(188.1		)	(15.3		)	(151.2		)	(11.1		)	(365.7		)
Impairment of Deferred Acquisition Costs	—			—			—			(196.0		)	(196.0		)
Adjustment Related to Unrealized Investment Gains/Losses	(4.1		)	—			(15.5		)	—			(19.6		)
Foreign Currency	—			(0.2		)	—			—			(0.2		)
Balances at December 31, 2011, as adjusted	971.8			40.9			664.4			—			1,677.1
Capitalized	126.2			7.1			103.3			—			236.6
Amortized	(106.8		)	(8.0		)	(83.8		)	—			(198.6		)
Adjustment Related to Unrealized Investment Gains/Losses	0.2			—			(4.6		)	—			(4.4		)
Foreign Currency	—			0.5			—			—			0.5
Balances at June 30, 2012	$	991.4		$	40.5		$	679.3		$	—		$	1,711.2

4.1

Unum Group Balance Sheets by Segment - June 30, 2012



	Unum US
	Group Disability			Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Consolidated
Assets
Investments	$	9,945.6		$	2,506.6	$	3,956.1	$	16,408.3	$	3,525.1	$	2,402.9	$	26,403.8	$	1,574.0		$	50,314.1
Deferred Acquisition Costs	42.5			35.4		913.5		991.4		40.5		679.3		—		—			1,711.2
Goodwill	2.5			—		187.5		190.0		11.3		—		—		—			201.3
All Other	644.8			134.7		439.1		1,218.6		194.3		198.0		5,694.3		1,146.9			8,452.1
Total Assets	$	10,635.4		$	2,676.7	$	5,496.2	$	18,808.3	$	3,771.2	$	3,280.2	$	32,098.1	$	2,720.9		$	60,678.7

Liabilities
Reserves and Policyholder Benefits	$	8,834.0		$	1,684.4	$	3,354.9	$	13,873.3	$	2,653.3	$	1,823.5	$	28,987.6	$	—		$	47,337.7
Debt	70.7			—		—		70.7		—		—		575.1		2,361.6			3,007.4
All Other	223.4			32.2		364.5		620.1		130.4		265.8		44.1		887.3			1,947.7
Total Liabilities	9,128.1			1,716.6		3,719.4		14,564.1		2,783.7		2,089.3		29,606.8		3,248.9			52,292.8

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,509.7			914.1		1,623.0		4,046.8		800.5		1,060.5		2,149.5		(810.1		)	7,247.2
Net Unrealized Gain/Loss on Securities and Net Gain on Cash Flow Hedges	(2.4		)	46.0		153.8		197.4		187.0		130.4		341.8		282.1			1,138.7
Total Allocated Stockholders' Equity	1,507.3			960.1		1,776.8		4,244.2		987.5		1,190.9		2,491.3		(528.0		)	8,385.9

Total Liabilities and Allocated Stockholders' Equity	$	10,635.4		$	2,676.7	$	5,496.2	$	18,808.3	$	3,771.2	$	3,280.2	$	32,098.1	$	2,720.9		$	60,678.7

Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with the Company's target capital levels for regulatory and rating agency purposes. This formula is modified periodically to recognize changes in the views of capital requirements.

4.2

Unum Group Balance Sheets by Segment - December 31, 2011 - As Adjusted



	Unum US
	Group Disability			Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Consolidated
Assets
Investments	$	10,017.5		$	2,424.6	$	3,735.4	$	16,177.5	$	3,293.6	$	2,294.8	$	25,615.9	$	1,831.3		$	49,213.1
Deferred Acquisition Costs	39.4			32.0		900.4		971.8		40.9		664.4		—		—			1,677.1
Goodwill	2.5			—		187.5		190.0		11.2		—		—		—			201.2
All Other	616.1			124.7		503.5		1,244.3		203.8		208.6		5,823.6		983.5			8,463.8
Total Assets	$	10,675.5		$	2,581.3	$	5,326.8	$	18,583.6	$	3,549.5	$	3,167.8	$	31,439.5	$	2,814.8		$	59,555.2

Liabilities
Reserves and Policyholder Benefits	$	8,913.9		$	1,661.9	$	3,270.3	$	13,846.1	$	2,491.8	$	1,768.3	$	28,498.8	$	—		$	46,605.0
Debt	79.0			—		—		79.0		—		—		597.6		2,205.9			2,882.5
All Other	207.1			12.5		341.2		560.8		114.0		248.8		38.8		935.6			1,898.0
Total Liabilities	9,200.0			1,674.4		3,611.5		14,485.9		2,605.8		2,017.1		29,135.2		3,141.5			51,385.5

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,477.7			867.4		1,587.8		3,932.9		756.1		1,030.9		2,006.0		(579.7		)	7,146.2
Net Unrealized Gain/Loss on Securities and Net Gain on Cash Flow Hedges	(2.2		)	39.5		127.5		164.8		187.6		119.8		298.3		253.0			1,023.5
Total Allocated Stockholders' Equity	1,475.5			906.9		1,715.3		4,097.7		943.7		1,150.7		2,304.3		(326.7		)	8,169.7

Total Liabilities and Allocated Stockholders' Equity	$	10,675.5		$	2,581.3	$	5,326.8	$	18,583.6	$	3,549.5	$	3,167.8	$	31,439.5	$	2,814.8		$	59,555.2

4.3

Unum Group Financial Results by Segment



	Three Months Ended							Six Months Ended
	6/30/2012		6/30/2011			% Change		6/30/2012		6/30/2011		% Change
			As Adjusted							As Adjusted
Premium Income
Unum US	$	1,115.0	$	1,069.8		4.2	%	$	2,227.0	$	2,138.6	4.1	%
Unum UK	173.2		175.8			(1.5	)	343.9		342.9		0.3
Colonial Life	296.9		282.0			5.3		593.2		562.4		5.5
Closed Block	342.5		347.4			(1.4	)	685.4		700.6		(2.2	)
	1,927.6		1,875.0			2.8		3,849.5		3,744.5		2.8
Net Investment Income
Unum US	236.9		238.9			(0.8	)	475.5		472.6		0.6
Unum UK	49.2		51.1			(3.7	)	85.7		96.0		(10.7	)
Colonial Life	34.0		35.8			(5.0	)	69.6		67.1		3.7
Closed Block	304.5		294.5			3.4		606.1		588.8		2.9
Corporate	8.9		16.8			(47.0	)	16.1		31.3		(48.6	)
	633.5		637.1			(0.6	)	1,253.0		1,255.8		(0.2	)
Other Income
Unum US	30.7		29.5			4.1		61.8		60.5		2.1
Unum UK	—		—			—		0.1		0.1		—
Colonial Life	0.1		0.2			(50.0	)	0.2		0.3		(33.3	)
Closed Block	26.6		26.7			(0.4	)	52.5		54.2		(3.1	)
Corporate	1.5		(0.4		)	N.M.		1.8		0.6		200.0
	58.9		56.0			5.2		116.4		115.7		0.6
Total Operating Revenue
Unum US	1,382.6		1,338.2			3.3		2,764.3		2,671.7		3.5
Unum UK	222.4		226.9			(2.0	)	429.7		439.0		(2.1	)
Colonial Life	331.0		318.0			4.1		663.0		629.8		5.3
Closed Block	673.6		668.6			0.7		1,344.0		1,343.6		—
Corporate	10.4		16.4			(36.6	)	17.9		31.9		(43.9	)
	2,620.0		2,568.1			2.0		5,218.9		5,116.0		2.0

Unum Group Financial Results by Segment



	Three Months Ended								Six Months Ended
	6/30/2012			6/30/2011			% Change		6/30/2012			6/30/2011			% Change
				As Adjusted								As Adjusted
Benefits and Expenses
Unum US	$	1,169.9		$	1,132.6		3.3	%	$	2,345.7		$	2,271.4		3.3	%
Unum UK	192.4			171.7			12.1		360.9			334.9			7.8
Colonial Life	263.4			246.1			7.0		525.7			491.4			7.0
Closed Block	647.9			638.2			1.5		1,302.9			1,281.3			1.7
Corporate	36.3			33.4			8.7		64.4			70.7			(8.9	)
	2,309.9			2,222.0			4.0		4,599.6			4,449.7			3.4
Income (Loss) Before Income Tax, Net Realized Investment Gains and Losses, and Non-operating Retirement-related Loss
Unum US	212.7			205.6			3.5		418.6			400.3			4.6
Unum UK	30.0			55.2			(45.7	)	68.8			104.1			(33.9	)
Colonial Life	67.6			71.9			(6.0	)	137.3			138.4			(0.8	)
Closed Block	25.7			30.4			(15.5	)	41.1			62.3			(34.0	)
Corporate	(25.9		)	(17.0		)	(52.4	)	(46.5		)	(38.8		)	(19.8	)
	310.1			346.1			(10.4	)	619.3			666.3			(7.1	)
Income Tax Expense	84.8			111.1			(23.7	)	180.8			212.2			(14.8	)

Income Before Net Realized Investment Gains and Losses and Non-operating Retirement-related Loss	225.3			235.0			(4.1	)	438.5			454.1			(3.4	)

Net Realized Investment Gain (Loss)	(2.1		)	(3.6		)	41.7		10.3			11.6			(11.2	)

Tax (Expense) Benefit on Net Realized Investment Gain (Loss)	0.7			1.4			(50.0	)	(3.4		)	(4.1		)	17.1

Non-operating Retirement-related Loss	(11.6		)	(8.0		)	(45.0	)	(23.2		)	(16.0		)	(45.0	)

Tax Benefit on Non-operating Retirement-related Loss	4.1			2.8			46.4		8.1			5.6			44.6

Net Income	$	216.4		$	227.6		(4.9	)	$	430.3		$	451.2		(4.6	)

5.1

Unum Group Quarterly Historical Financial Results by Segment



	6/30/2012		3/31/2012		12/31/2011		9/30/2011		6/30/2011			3/31/2011		12/31/2010		9/30/2010		6/30/2010
					As Adjusted
Premium Income
Unum US	$	1,115.0	$	1,112.0	$	1,083.0	$	1,074.4	$	1,069.8		$	1,068.8	$	1,060.3	$	1,061.2	$	1,067.0
Unum UK	173.2		170.7		169.2		175.5		175.8			167.1		170.5		161.4		152.9
Colonial Life	296.9		296.3		289.2		283.7		282.0			280.4		273.6		269.3		267.7
Closed Block	342.5		342.9		347.1		347.6		347.4			353.2		363.8		358.3		362.2
	1,927.6		1,921.9		1,888.5		1,881.2		1,875.0			1,869.5		1,868.2		1,850.2		1,849.8
Net Investment Income
Unum US	236.9		238.6		238.8		240.0		238.9			233.7		242.3		232.1		237.8
Unum UK	49.2		36.5		50.6		43.3		51.1			44.9		48.6		39.0		43.1
Colonial Life	34.0		35.6		32.8		32.5		35.8			31.3		31.4		31.9		29.3
Closed Block	304.5		301.6		300.8		300.1		294.5			294.3		291.8		290.8		293.0
Corporate	8.9		7.2		11.6		13.3		16.8			14.5		20.2		24.6		26.6
	633.5		619.5		634.6		629.2		637.1			618.7		634.3		618.4		629.8
Other Income
Unum US	30.7		31.1		30.7		30.4		29.5			31.0		32.6		29.6		30.6
Unum UK	—		0.1		0.2		—		—			0.1		0.1		0.2		0.4
Colonial Life	0.1		0.1		0.1		0.1		0.2			0.1		0.2		0.2		0.1
Closed Block	26.6		25.9		25.5		26.4		26.7			27.5		28.6		27.8		28.6
Corporate	1.5		0.3		17.8		2.2		(0.4		)	1.0		1.6		0.4		0.8
	58.9		57.5		74.3		59.1		56.0			59.7		63.1		58.2		60.5
Total Operating Revenue
Unum US	1,382.6		1,381.7		1,352.5		1,344.8		1,338.2			1,333.5		1,335.2		1,322.9		1,335.4
Unum UK	222.4		207.3		220.0		218.8		226.9			212.1		219.2		200.6		196.4
Colonial Life	331.0		332.0		322.1		316.3		318.0			311.8		305.2		301.4		297.1
Closed Block	673.6		670.4		673.4		674.1		668.6			675.0		684.2		676.9		683.8
Corporate	10.4		7.5		29.4		15.5		16.4			15.5		21.8		25.0		27.4
	2,620.0		2,598.9		2,597.4		2,569.5		2,568.1			2,547.9		2,565.6		2,526.8		2,540.1

Unum Group Quarterly Historical Financial Results by Segment



	6/30/2012			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
							As Adjusted
Benefits and Expenses
Unum US	$	1,169.9		$	1,175.8		$	1,145.1		$	1,135.6		$	1,132.6		$	1,138.8		$	1,140.5		$	1,131.9		$	1,134.6
Unum UK	192.4			168.5			168.1			184.1			171.7			163.2			171.4			152.8			143.6
Colonial Life	263.4			262.3			257.1			249.6			246.1			245.3			247.8			230.4			226.0
Closed Block	647.9			655.0			1,595.7			643.3			638.2			643.1			655.0			647.2			660.0
Corporate	36.3			28.1			48.2			36.3			33.4			37.3			37.6			34.1			32.3
	2,309.9			2,289.7			3,214.2			2,248.9			2,222.0			2,227.7			2,252.3			2,196.4			2,196.5
Income (Loss) Before Income Tax, Net Realized Investment Gains and Losses, and Non-operating Retirement-related Loss
Unum US	212.7			205.9			207.4			209.2			205.6			194.7			194.7			191.0			200.8
Unum UK	30.0			38.8			51.9			34.7			55.2			48.9			47.8			47.8			52.8
Colonial Life	67.6			69.7			65.0			66.7			71.9			66.5			57.4			71.0			71.1
Closed Block	25.7			15.4			(922.3		)	30.8			30.4			31.9			29.2			29.7			23.8
Corporate	(25.9		)	(20.6		)	(18.8		)	(20.8		)	(17.0		)	(21.8		)	(15.8		)	(9.1		)	(4.9		)
	310.1			309.2			(616.8		)	320.6			346.1			320.2			313.3			330.4			343.6
Income Tax Expense (Benefit)	84.8			96.0			(248.1		)	97.5			111.1			101.1			101.3			107.1			111.1

Income (Loss) Before Net Realized Investment Gain and Loss and Non-operating Retirement-related Loss	225.3			213.2			(368.7		)	223.1			235.0			219.1			212.0			223.3			232.5

Net Realized Investment Gain (Loss)	(2.1		)	12.4			7.4			(23.9		)	(3.6		)	15.2			27.5			1.1			(29.5		)

Tax (Expense) Benefit on Net Realized Investment Gain (Loss)	0.7			(4.1		)	(2.6		)	8.0			1.4			(5.5		)	(10.3		)	(0.2		)	10.6

Non-operating Retirement-related Loss	(11.6		)	(11.6		)	(7.9		)	(8.0		)	(8.0		)	(8.0		)	(8.1		)	(8.0		)	(8.1		)

Tax Benefit on Non-operating Retirement-related Loss	4.1			4.0			2.8			2.8			2.8			2.8			2.8			2.7			2.8

Net Income (Loss)	$	216.4		$	213.9		$	(369.0	)	$	202.0		$	227.6		$	223.6		$	223.9		$	218.9		$	208.3

Net Income (Loss) Per Common Share - Assuming Dilution	$	0.76		$	0.73		$	(1.26	)	$	0.68		$	0.74		$	0.71		$	0.70		$	0.67		$	0.63

6.1

Unum Group Financial Results for Unum US Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income	$	1,115.0		$	1,069.8		$	2,227.0		$	2,138.6		$	4,296.0		$	4,255.4		$	4,278.4
Net Investment Income	236.9			238.9			475.5			472.6			951.4			941.5			934.3
Other Income	30.7			29.5			61.8			60.5			121.6			122.8			118.8
Total	1,382.6			1,338.2			2,764.3			2,671.7			5,369.0			5,319.7			5,331.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	804.4			773.1			1,610.6			1,543.5			3,113.5			3,124.4			3,192.1
Commissions	129.7			118.2			259.0			241.2			474.0			460.6			448.3
Interest and Debt Expense	0.3			0.2			0.6			0.5			1.0			1.2			2.0
Deferral of Acquisition Costs	(64.3		)	(56.6		)	(126.2		)	(113.2		)	(220.3		)	(207.8		)	(209.3		)
Amortization of Deferred Acquisition Costs	53.2			49.4			106.8			99.0			188.1			192.6			180.1
Other Expenses	246.6			248.3			494.9			500.4			995.8			979.7			999.3
Total	1,169.9			1,132.6			2,345.7			2,271.4			4,552.1			4,550.7			4,612.5

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	212.7		$	205.6		$	418.6		$	400.3		$	816.9		$	769.0		$	719.0

Operating Ratios (% of Premium Income):
Benefit Ratio	72.1		%	72.3		%	72.3		%	72.2		%	72.5		%	73.4		%	74.6		%
Other Expense Ratio	22.1		%	23.2		%	22.2		%	23.4		%	23.2		%	23.0		%	23.4		%
Before-tax Operating Income Ratio	19.1		%	19.2		%	18.8		%	18.7		%	19.0		%	18.1		%	16.8		%

Unum Group Financial Results for Unum US Group Disability



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Long-term Disability	$	397.8		$	394.6		$	793.3		$	791.6		$	1,580.2		$	1,639.4		$	1,726.9
Group Short-term Disability	118.2			112.8			235.9			223.8			455.2			430.9			432.8
Total Premium Income	516.0			507.4			1,029.2			1,015.4			2,035.4			2,070.3			2,159.7
Net Investment Income	142.0			153.5			289.4			301.2			605.0			614.6			629.4
Other Income	23.1			21.8			46.6			44.0			89.4			86.7			88.9
Total	681.1			682.7			1,365.2			1,360.6			2,729.8			2,771.6			2,878.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	436.8			428.1			872.5			854.4			1,722.1			1,747.8			1,862.8
Commissions	40.3			39.5			80.7			80.3			159.5			159.7			162.2
Interest and Debt Expense	0.3			0.2			0.6			0.5			1.0			1.2			2.0
Deferral of Acquisition Costs	(5.8		)	(5.3		)	(11.9		)	(10.7		)	(21.9		)	(18.2		)	(24.1		)
Amortization of Deferred Acquisition Costs	4.5			4.9			8.7			9.9			19.8			20.5			24.2
Other Expenses	134.6			136.6			269.5			273.7			547.0			543.7			572.6
Total	610.7			604.0			1,220.1			1,208.1			2,427.5			2,454.7			2,599.7

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	70.4		$	78.7		$	145.1		$	152.5		$	302.3		$	316.9		$	278.3

Operating Ratios (% of Premium Income):
Benefit Ratio	84.7		%	84.4		%	84.8		%	84.1		%	84.6		%	84.4		%	86.3		%
Other Expense Ratio	26.1		%	26.9		%	26.2		%	27.0		%	26.9		%	26.3		%	26.5		%
Before-tax Operating Income Ratio	13.6		%	15.5		%	14.1		%	15.0		%	14.9		%	15.3		%	12.9		%

Premium Persistency:
Group Long-term Disability							91.7		%	89.8		%	90.2		%	89.4		%	86.9		%
Group Short-term Disability							89.8		%	90.7		%	89.9		%	88.6		%	86.8		%

Case Persistency:
Group Long-term Disability							88.3		%	89.1		%	89.0		%	88.4		%	87.4		%
Group Short-term Disability							87.8		%	88.1		%	88.0		%	87.3		%	86.5		%

7.1

Unum Group Financial Results for Unum US Group Life and Accidental Death & Dismemberment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Life	$	294.2		$	274.3		$	587.8		$	547.7		$	1,106.7		$	1,090.3		$	1,057.7
Accidental Death & Dismemberment	28.7			26.8			57.0			53.9			109.2			106.1			104.9
Total Premium Income	322.9			301.1			644.8			601.6			1,215.9			1,196.4			1,162.6
Net Investment Income	38.2			33.7			73.1			67.9			135.5			129.6			126.5
Other Income	0.4			0.7			0.9			1.2			2.2			2.4			1.9
Total	361.5			335.5			718.8			670.7			1,353.6			1,328.4			1,291.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	232.2			211.6			463.9			421.8			854.6			839.9			815.5
Commissions	25.9			23.4			52.1			46.9			95.5			89.3			85.4
Deferral of Acquisition Costs	(5.0		)	(4.7		)	(10.1		)	(9.4		)	(18.5		)	(15.4		)	(16.4		)
Amortization of Deferred Acquisition Costs	3.3			3.6			6.7			7.2			14.2			14.1			15.3
Other Expenses	47.8			49.6			96.5			100.6			199.3			196.5			197.6
Total	304.2			283.5			609.1			567.1			1,145.1			1,124.4			1,097.4

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	57.3		$	52.0		$	109.7		$	103.6		$	208.5		$	204.0		$	193.6

Operating Ratios (% of Premium Income):
Benefit Ratio	71.9		%	70.3		%	71.9		%	70.1		%	70.3		%	70.2		%	70.1		%
Other Expense Ratio	14.8		%	16.5		%	15.0		%	16.7		%	16.4		%	16.4		%	17.0		%
Before-tax Operating Income Ratio	17.7		%	17.3		%	17.0		%	17.2		%	17.1		%	17.1		%	16.7		%

Premium Persistency:
Group Life							91.6		%	87.3		%	88.0		%	91.5		%	86.9		%
Accidental Death & Dismemberment							91.3		%	87.8		%	88.2		%	90.7		%	88.1		%

Case Persistency:
Group Life							88.1		%	88.6		%	88.6		%	88.3		%	87.2		%
Accidental Death & Dismemberment							88.0		%	88.5		%	88.6		%	88.4		%	87.2		%

7.2

Unum Group Financial Results for Unum US Supplemental and Voluntary



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Individual Disability - Recently Issued	$	118.7		$	116.6		$	237.1		$	231.7		$	464.7		$	457.9		$	463.7
Voluntary Benefits	157.4			144.7			315.9			289.9			580.0			530.8			492.4
Total Premium Income	276.1			261.3			553.0			521.6			1,044.7			988.7			956.1
Net Investment Income	56.7			51.7			113.0			103.5			210.9			197.3			178.4
Other Income	7.2			7.0			14.3			15.3			30.0			33.7			28.0
Total	340.0			320.0			680.3			640.4			1,285.6			1,219.7			1,162.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	135.4			133.4			274.2			267.3			536.8			536.7			513.8
Commissions	63.5			55.3			126.2			114.0			219.0			211.6			200.7
Deferral of Acquisition Costs	(53.5		)	(46.6		)	(104.2		)	(93.1		)	(179.9		)	(174.2		)	(168.8		)
Amortization of Deferred Acquisition Costs	45.4			40.9			91.4			81.9			154.1			158.0			140.6
Other Expenses	64.2			62.1			128.9			126.1			249.5			239.5			229.1
Total	255.0			245.1			516.5			496.2			979.5			971.6			915.4

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	85.0		$	74.9		$	163.8		$	144.2		$	306.1		$	248.1		$	247.1

Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability - Recently Issued	52.1		%	52.0		%	51.8		%	52.1		%	52.2		%	53.3		%	51.4		%
Voluntary Benefits	46.8		%	50.3		%	47.9		%	50.6		%	50.7		%	55.1		%	56.0		%
Other Expense Ratio	23.3		%	23.8		%	23.3		%	24.2		%	23.9		%	24.2		%	24.0		%
Before-tax Operating Income Ratio	30.8		%	28.7		%	29.6		%	27.6		%	29.3		%	25.1		%	25.8		%

Interest Adjusted Loss Ratio:
Individual Disability - Recently Issued	30.8		%	30.7		%	30.6		%	30.8		%	30.8		%	32.5		%	32.5		%

Premium Persistency:
Individual Disability - Recently Issued							90.3		%	90.1		%	89.3		%	90.7		%	89.6		%
Voluntary Benefits							79.4		%	79.1		%	80.5		%	80.1		%	79.9		%

7.3

Unum Group Financial Results for Unum UK Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Long-term Disability	$	101.7		$	107.6		$	203.6		$	211.0		$	419.6		$	421.2		$	482.4
Group Life	55.5			51.9			108.2			99.5			203.6			171.6			147.8
Supplemental and Voluntary	16.0			16.3			32.1			32.4			64.4			57.8			55.9
Total Premium Income	173.2			175.8			343.9			342.9			687.6			650.6			686.1
Net Investment Income	49.2			51.1			85.7			96.0			189.9			170.5			124.5
Other Income	—			—			0.1			0.1			0.3			1.2			2.4
Total	222.4			226.9			429.7			439.0			877.8			822.3			813.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	147.9			122.7			271.5			238.5			493.8			435.8			373.6
Commissions	10.0			11.4			20.6			22.3			45.7			44.1			46.7
Deferral of Acquisition Costs	(3.5		)	(4.1		)	(7.1		)	(7.6		)	(15.4		)	(15.1		)	(13.7		)
Amortization of Deferred Acquisition Costs	4.1			3.8			8.0			7.6			15.3			13.6			12.7
Other Expenses	33.9			37.9			67.9			74.1			147.7			134.9			141.7
Total	192.4			171.7			360.9			334.9			687.1			613.3			561.0

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	30.0		$	55.2		$	68.8		$	104.1		$	190.7		$	209.0		$	252.0

Operating Ratios (% of Premium Income):
Benefit Ratio	85.4		%	69.8		%	78.9		%	69.6		%	71.8		%	67.0		%	54.5		%
Other Expense Ratio	19.6		%	21.6		%	19.7		%	21.6		%	21.5		%	20.7		%	20.7		%
Before-tax Operating Income Ratio	17.3		%	31.4		%	20.0		%	30.4		%	27.7		%	32.1		%	36.7		%

Premium Persistency:
Group Long-term Disability							84.1		%	85.0		%	86.6		%	91.3		%	88.5		%
Group Life							82.4		%	87.4		%	89.3		%	92.7		%	80.1		%
Supplemental and Voluntary							87.0		%	86.6		%	87.3		%	88.9		%	88.2		%

Unum Group Financial Results for Unum UK Segment - Continued



(in millions of pounds, except exchange rate)	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Long-term Disability	£	64.3		£	66.0		£	129.1		£	130.5		£	261.6		£	272.3		£	309.0
Group Life	35.1			31.8			68.6			61.5			127.0			110.9			94.1
Supplemental and Voluntary	10.0			10.0			20.3			20.0			40.1			37.4			35.6
Total Premium Income	109.4			107.8			218.0			212.0			428.7			420.6			438.7
Net Investment Income	31.0			31.3			54.3			59.3			118.4			110.2			79.6
Other Income	0.1			—			0.1			0.1			0.1			0.9			1.6
Total	140.5			139.1			272.4			271.4			547.2			531.7			519.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	93.3			75.2			171.9			147.5			307.7			281.4			238.3
Commissions	6.4			7.0			13.1			13.8			28.5			28.5			29.8
Deferral of Acquisition Costs	(2.2		)	(2.5		)	(4.5		)	(4.7		)	(9.5		)	(9.6		)	(8.7		)
Amortization of Deferred Acquisition Costs	2.5			2.3			5.0			4.7			9.4			8.6			8.2
Other Expenses	21.4			23.1			43.1			45.7			92.1			87.4			90.2
Total	121.4			105.1			228.6			207.0			428.2			396.3			357.8

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	£	19.1		£	34.0		£	43.8		£	64.4		£	119.0		£	135.4		£	162.1

Weighted Average Pound/Dollar Exchange Rate	1.571			1.628			1.571			1.618			1.603			1.543			1.554

8.1

Unum Group Financial Results for Colonial Life Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	179.8		$	173.1		$	360.0		$	345.4		$	695.3		$	661.0		$	625.8
Life	52.4			46.8			104.1			93.0			190.7			176.5			165.6
Cancer and Critical Illness	64.7			62.1			129.1			124.0			249.3			238.2			223.7
Total Premium Income	296.9			282.0			593.2			562.4			1,135.3			1,075.7			1,015.1
Net Investment Income	34.0			35.8			69.6			67.1			132.4			122.5			114.3
Other Income	0.1			0.2			0.2			0.3			0.5			0.7			0.5
Total	331.0			318.0			663.0			629.8			1,268.2			1,198.9			1,129.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	155.8			144.3			310.2			288.4			589.4			534.7			480.6
Commissions	63.3			60.5			127.2			121.7			245.9			232.6			215.3
Deferral of Acquisition Costs	(51.4		)	(50.8		)	(103.3		)	(102.1		)	(203.1		)	(196.8		)	(182.3		)
Amortization of Deferred Acquisition Costs	41.9			37.7			83.8			75.8			151.2			150.1			143.6
Other Expenses	53.8			54.4			107.8			107.6			214.7			208.6			203.6
Total	263.4			246.1			525.7			491.4			998.1			929.2			860.8

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	67.6		$	71.9		$	137.3		$	138.4		$	270.1		$	269.7		$	269.1

Operating Ratios (% of Premium Income):
Benefit Ratio	52.5		%	51.2		%	52.3		%	51.3		%	51.9		%	49.7		%	47.3		%
Other Expense Ratio	18.1		%	19.3		%	18.2		%	19.1		%	18.9		%	19.4		%	20.1		%
Before-tax Operating Income Ratio	22.8		%	25.5		%	23.1		%	24.6		%	23.8		%	25.1		%	26.5		%

Persistency:
Accident, Sickness, and Disability							74.6		%	74.1		%	73.8		%	75.9		%	74.4		%
Life							84.9		%	85.6		%	85.0		%	86.0		%	84.7		%
Cancer and Critical Illness							84.0		%	84.2		%	84.0		%	84.9		%	83.8		%

Unum Group Financial Results for Closed Block Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Individual Disability	$	184.6		$	196.3		$	371.8		$	398.6		$	787.0		$	847.0		$	898.5
Long-term Care	156.9			150.8			312.1			301.4			608.1			599.2			594.7
All Other	1.0			0.3			1.5			0.6			0.2			3.5			2.7
Total Premium Income	342.5			347.4			685.4			700.6			1,395.3			1,449.7			1,495.9
Net Investment Income	304.5			294.5			606.1			588.8			1,189.7			1,166.4			1,106.8
Other Income	26.6			26.7			52.5			54.2			106.1			113.6			131.1
Total	673.6			668.6			1,344.0			1,343.6			2,691.1			2,729.7			2,733.8

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	575.1			559.3			1,153.8			1,122.0			3,012.8			2,259.2			2,245.3
Commissions	27.8			27.8			56.3			57.0			113.6			118.1			126.8
Interest and Debt Expense	2.7			2.6			5.4			5.3			10.5			11.7			16.6
Deferral of Acquisition Costs	—			(0.9		)	—			(1.7		)	(3.7		)	(2.8		)	(5.6		)
Amortization of Deferred Acquisition Costs	—			3.7			—			7.2			11.1			17.0			15.5
Impairment of Long-term Care Deferred Acquisition Costs	—			—			—			—			196.0			—			—
Other Expenses	42.3			45.7			87.4			91.5			180.0			207.9			211.2
Total	647.9			638.2			1,302.9			1,281.3			3,520.3			2,611.1			2,609.8

Operating Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses, as reported	$	25.7		$	30.4		$	41.1		$	62.3		$	(829.2	)	$	118.6		$	124.0

Interest Adjusted Loss Ratios, as reported:
Individual Disability	82.7		%	84.3		%	82.9		%	84.5		%	108.0		%	85.0		%	81.6		%
Long-term Care	87.8		%	84.3		%	89.5		%	83.7		%	179.3		%	80.8		%	76.5		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	12.4		%	13.2		%	12.8		%	13.1		%	12.9		%	14.3		%	14.1		%
Before-tax Operating Income (Loss) Ratio, as reported	7.5		%	8.8		%	6.0		%	8.9		%	(59.4		)%	8.2		%	8.3		%

Premium Persistency:
Individual Disability							92.9		%	92.6		%	92.9		%	93.0		%	93.2		%
Long-term Care							95.8		%	95.6		%	96.0		%	95.8		%	95.1		%

Unum Group Financial Results for Closed Block Segment - Continued



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses, as reported	$	25.7		$	30.4		$	41.1		$	62.3		$	(829.2	)	$	118.6		$	124.0
Individual Disability Reserve Charge	—			—			—			—			183.5			—			—
Long-term Care Reserve Charge	—			—			—			—			573.6			—			—
Impairment of Long-term Care Deferred Acquisition Costs	—			—			—			—			196.0			—			—

Operating Income Before Income Tax and Net Realized Investment Gains and Losses, as adjusted	$	25.7		$	30.4		$	41.1		$	62.3		$	123.9		$	118.6		$	124.0

Interest Adjusted Loss Ratios, as adjusted:
Individual Disability	82.7		%	84.3		%	82.9		%	84.5		%	84.7		%	85.0		%	81.6		%
Long-term Care	87.8		%	84.3		%	89.5		%	83.7		%	84.9		%	80.8		%	76.5		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	12.4		%	13.2		%	12.8		%	13.1		%	12.9		%	14.3		%	14.1		%
Before-tax Operating Income Ratio, as adjusted	7.5		%	8.8		%	6.0		%	8.9		%	8.9		%	8.2		%	8.3		%

10.1

Unum Group Financial Results for Corporate Segment



	Three Months Ended						Six Months Ended						Year Ended
	6/30/2012			6/30/2011			6/30/2012			6/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Net Investment Income	$	8.9		$	16.8		$	16.1		$	31.3		$	56.2		$	94.6		$	66.7
Other Income	1.5			(0.4		)	1.8			0.6			20.6			3.3			4.4
Total	10.4			16.4			17.9			31.9			76.8			97.9			71.1

Expenses
Interest and Debt Expense	32.2			32.3			64.7			67.2			131.8			128.9			106.8
Other Expenses	4.1			1.1			(0.3		)	3.5			23.4			7.9			12.7
Total	36.3			33.4			64.4			70.7			155.2			136.8			119.5

Operating Loss Before Non-operating Retirement-related Loss, Income Tax, and Net Realized Investment Gains and Losses	$	(25.9	)	$	(17.0	)	$	(46.5	)	$	(38.8	)	$	(78.4	)	$	(38.9	)	$	(48.4	)

Unum Group Reserves



	June 30, 2012
	Gross												Total
	Policy				Claim Reserves								Reinsurance		Total
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	7,093.5	$	616.5	31.5	%	$	7,710.0	$	62.9	$	7,647.1
Group Life and Accidental Death & Dismemberment	74.4		0.5		772.7		158.0		3.8		1,005.1		2.3		1,002.8
Individual Disability - Recently Issued	552.1		3.7		1,067.0		123.0		4.9		1,742.1		89.8		1,652.3
Voluntary Benefits	1,177.1		7.8		39.9		48.2		0.3		1,265.2		27.1		1,238.1
Unum US Segment	1,803.6		12.0		8,973.1		945.7		40.5		11,722.4		182.1		11,540.3

Unum UK Segment	25.0		0.2		2,154.0		132.5		9.3		2,311.5		105.9		2,205.6

Colonial Life Segment	1,443.1		9.6		246.7		93.8		1.4		1,783.6		10.8		1,772.8

Individual Disability	1,046.2		7.0		10,436.6		303.4		43.8		11,786.2		1,488.8		10,297.4
Long-term Care	4,995.7		33.2		723.9		51.1		3.2		5,770.7		47.4		5,723.3
Other	5,716.8		38.0		267.0		179.2		1.8		6,163.0		4,839.8		1,323.2
Closed Block Segment	11,758.7		78.2		11,427.5		533.7		48.8		23,719.9		6,376.0		17,343.9

Subtotal, Excluding Unrealized Adjustment	$	15,030.4	100.0	%	$	22,801.3	$	1,705.7	100.0	%	39,537.4		6,674.8		32,862.6

Unrealized Adjustment to Reserves for Unrealized Gain on Securities											5,644.3		312.3		5,332.0

Consolidated											$	45,181.7	$	6,987.1	$	38,194.6

Unum Group Reserves



	December 31, 2011
	Gross												Total
	Policy				Claim Reserves								Reinsurance		Total
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	7,230.0	$	595.7	31.8	%	$	7,825.7	$	63.8	$	7,761.9
Group Life and Accidental Death & Dismemberment	74.3		0.5		780.5		146.2		3.8		1,001.0		1.0		1,000.0
Individual Disability - Recently Issued	546.7		3.7		1,063.9		104.5		4.8		1,715.1		91.0		1,624.1
Voluntary Benefits	1,138.6		7.7		42.1		45.8		0.3		1,226.5		26.5		1,200.0
Unum US Segment	1,759.6		11.9		9,116.5		892.2		40.7		11,768.3		182.3		11,586.0

Unum UK Segment	26.2		0.2		2,118.7		121.4		9.1		2,266.3		108.1		2,158.2

Colonial Life Segment	1,399.5		9.5		243.2		90.1		1.4		1,732.8		12.2		1,720.6

Individual Disability	1,112.3		7.6		10,494.0		299.1		43.9		11,905.4		1,477.2		10,428.2
Long-term Care	4,728.3		32.1		667.8		50.3		2.9		5,446.4		48.2		5,398.2
Other	5,687.9		38.7		306.5		186.7		2.0		6,181.1		4,824.6		1,356.5
Closed Block Segment	11,528.5		78.4		11,468.3		536.1		48.8		23,532.9		6,350.0		17,182.9

Subtotal, Excluding Unrealized Adjustment	$	14,713.8	100.0	%	$	22,946.7	$	1,639.8	100.0	%	39,300.3		6,652.6		32,647.7

Unrealized Adjustment to Reserves for Unrealized Gain on Securities											5,245.6		293.2		4,952.4

Consolidated											$	44,545.9	$	6,945.8	$	37,600.1

12.1

Unum Group Investment Fact Sheet at June 30, 2012



	6/30/2012						6/30/2012			3/31/2012
Fixed Maturity Securities (Fair Value)						Selected Statistics
Public	$	28,588.4		65.7	%	Duration Weighted Book Yield	6.59		%	6.62		%
Asset-Backed Securities (1)	70.8			0.2		Average Duration (in years)	7.88			7.73
Residential Mortgage-Backed Securities (2)	2,411.9			5.5
Commercial Mortgage-Backed Securities	122.0			0.3
Private Placements	4,869.6			11.2
High Yield	2,974.8			6.8
Government Securities	2,765.8			6.4
Municipal Securities	1,669.5			3.8
Redeemable Preferred Stocks (3)	44.1			0.1
Total	$	43,516.9		100.0	%

	Amortized Cost			Fair Value
Quality Ratings of Fixed Maturity Securities						Schedule BA and Non-Current
Aaa	11.4		%	11.5	%	Total Non-Current Investments	$	55.7		$	54.8
Aa	8.0			8.5		Total Schedule BA Assets	$	455.3		$	452.8
A	30.8			31.9
Baa	41.8			41.1
Below Baa	8.0			7.0
Total	100.0		%	100.0	%

(1) Includes $0.6 million of high yield asset-backed securities.
(2) Includes $39.9 million of high yield mortgage-backed securities.
(3) Includes $7.5 million of high yield preferred stock.

Unum Group Investment Fact Sheet at June 30, 2012



Fixed Maturity Securities - By Industry Classification
Classification	Fair Value		Net Unrealized Gain		Fair Value of Fixed Maturity Securities with Gross Unrealized Loss		Gross Unrealized Loss		Fair Value of Fixed Maturity Securities with Gross Unrealized Gain		Gross Unrealized Gain
Basic Industry	$	2,438.2	$	244.7	$	238.8	$	20.9	$	2,199.4	$	265.6
Capital Goods	3,856.6		510.0		252.8		12.8		3,603.8		522.8
Communications	2,905.2		429.2		233.5		25.3		2,671.7		454.5
Consumer Cyclical	1,232.4		159.3		89.0		9.8		1,143.4		169.1
Consumer Non-Cyclical	5,578.9		942.1		174.8		5.0		5,404.1		947.1
Energy (Oil & Gas)	3,776.3		648.7		133.2		2.6		3,643.1		651.3
Financial Institutions	3,580.1		243.9		471.0		36.2		3,109.1		280.1
Mortgage/Asset-Backed	2,604.7		318.9		13.3		0.5		2,591.4		319.4
Sovereigns	1,411.6		229.1		—		—		1,411.6		229.1
Technology	938.4		140.9		73.0		1.8		865.4		142.7
Transportation	1,363.8		239.7		36.7		1.6		1,327.1		241.3
U.S. Government Agencies and Municipalities	3,023.7		603.9		116.5		10.4		2,907.2		614.3
Utilities	10,762.9		1,690.9		405.7		40.9		10,357.2		1,731.8
Redeemable Preferred Stocks	44.1		3.6		—		—		44.1		3.6
Total	$	43,516.9	$	6,404.9	$	2,238.3	$	167.8	$	41,278.6	$	6,572.7

Fixed Maturity Securities - Financial Institutions Classification
Associations	$	14.0	$	2.1	$	—	$	—	$	14.0	$	2.1
Banking	2,191.6		96.8		430.8		34.8		1,760.8		131.6
Finance Captive	264.5		19.2		17.1		0.1		247.4		19.3
Insurance	749.5		90.6		23.1		1.3		726.4		91.9
Other Financial Institutions	43.4		2.2		—		—		43.4		2.2
Real Estate Management Services	317.1		33.0		—		—		317.1		33.0
Total	$	3,580.1	$	243.9	$	471.0	$	36.2	$	3,109.1	$	280.1

Gross Unrealized Loss on Fixed Maturity Securities By Length of Time in Unrealized Loss Position
			Investment-Grade						Below-Investment-Grade
Category			Fair Value		Gross Unrealized Loss				Fair Value		Gross Unrealized Loss
Less than 91 days			$	570.1	$	11.2			$	186.6	$	7.6
91 through 180 days			136.4		4.1				71.7		6.2
181 through 270 days			52.4		0.7				57.7		4.4
271 days to 1 year			249.4		7.8				94.9		3.0
Greater than 1 year			432.0		60.9				387.1		61.9
Total			$	1,440.3	$	84.7			$	798.0	$	83.1

13.1

Unum Group Investment Fact Sheet at June 30, 2012



Asset and Mortgage-Backed Securities Portfolio
	Amortized Cost		Fair Value				% of Total Fixed Maturity Securities		Average Rating
Asset-Backed Securities
Credit Cards	$	69.5	$	70.2	2.7	%	0.2	%	Aaa
Rate Reduction Bonds	—		—		—		—		—
Home Equity	0.9		0.6		—		—		Caa2
Collateralized Debt Obligations	—		—		—		—		—
Total	70.4		70.8		2.7		0.2		Aaa

Residential Mortgage-Backed Securities
Agency CMOs	1,939.7		2,238.4		85.9		5.1		Aaa
Agency Pass-throughs	107.5		117.1		4.5		0.3		Aaa
Non-agency CMOs - Prime	55.4		56.4		2.2		0.1		Ba1
Alt-A	—		—		—		—		—
Subprime	—		—		—		—		—
Collateralized Debt Obligations	—		—		—		—		—
Total	2,102.6		2,411.9		92.6		5.5		Aaa

Commercial Mortgage-Backed Securities
Agency CMBS	112.8		122.0		4.7		0.3		A3

Total	$	2,285.8	$	2,604.7	100.0	%	6.0	%	Aa1

13.2

Unum Group Statutory Capital and Surplus



	As of June 30, 2012						As of December 31, 2011
	Capital and Surplus		AVR		Capital and Surplus + AVR		Capital and Surplus + AVR
Traditional U.S. Life Insurance Companies

Provident Life and Accident	$	632.0	$	81.9	$	713.9	$	734.0

Unum Life of America	1,550.4		199.8		1,750.2		1,748.3

Paul Revere Life (1)	416.4		39.4		455.8		448.2

Colonial Life & Accident	553.4		29.0		582.4		559.1

Provident Life and Casualty	147.8		8.3		156.1		150.2

First Unum Life	277.2		13.1		290.3		280.4

Paul Revere Variable (1)	37.7		0.6		38.3		37.5

(1) Capital and Surplus of Paul Revere Variable is included in Paul Revere Life

Special Purpose Reinsurance Vehicles

Tailwind Reinsurance Company	$	62.6	$	0.1	$	62.7	$	67.4

Northwind Reinsurance Company	1,136.2		3.9		1,140.1		1,162.9

UnumProvident International Ltd.	571.6		—		571.6		555.0

Unum Group Statutory Operating Results



	Six Months Ended June 30
	Net Gain (Loss) from Operations After Tax						Net Realized Investment Gains (Losses) After Tax and Transfer to IMR						Net Income (Loss)
Traditional U.S. Life Insurance Companies	2012			2011			2012			2011			2012			2011
Provident Life and Accident	$	79.9		$	88.4		$	0.6		$	(2.9	)	$	80.5		$	85.5
Unum Life of America	100.4			115.3			(8.3		)	(18.8		)	92.1			96.5
Paul Revere Life	42.3			35.1			(1.1		)	8.2			41.2			43.3
Colonial Life & Accident	67.8			67.9			0.1			(1.8		)	67.9			66.1
Provident Life and Casualty	8.0			9.4			—			(0.6		)	8.0			8.8
First Unum Life	8.4			20.1			—			0.8			8.4			20.9
Paul Revere Variable	1.1			1.3			0.1			—			1.2			1.3
Total, as reported	307.9			337.5			(8.6		)	(15.1		)	299.3			322.4
Intercompany Dividends	(12.7		)	(9.9		)	—			—			(12.7		)	(9.9		)
Total, as adjusted	$	295.2		$	327.6		$	(8.6	)	$	(15.1	)	$	286.6		$	312.5

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	6.6		$	5.0		$	—		$	—		$	6.6		$	5.0
Northwind Reinsurance Company	10.5			51.7			0.6			(0.2		)	11.1			51.5
UnumProvident International Ltd.	(12.0		)	(8.2		)	0.7			4.7			(11.3		)	(3.5		)
Total	$	5.1		$	48.5		$	1.3		$	4.5		$	6.4		$	53.0

	Three Months Ended June 30
	Net Gain (Loss) from Operations After Tax						Net Realized Investment Gains (Losses) After Tax and Transfer to IMR						Net Income (Loss)
Traditional U.S. Life Insurance Companies	2012			2011			2012			2011			2012			2011
Provident Life and Accident	$	33.2		$	36.1		$	1.6		$	(0.2	)	$	34.8		$	35.9
Unum Life of America	67.6			72.0			(4.9		)	(10.0		)	62.7			62.0
Paul Revere Life	19.3			22.9			(1.2		)	—			18.1			22.9
Colonial Life & Accident	40.4			42.2			0.1			(1.5		)	40.5			40.7
Provident Life and Casualty	1.0			5.4			—			(0.6		)	1.0			4.8
First Unum Life	6.8			8.2			—			0.7			6.8			8.9
Paul Revere Variable	0.5			0.6			—			(0.1		)	0.5			0.5
Total, as reported	168.8			187.4			(4.4		)	(11.7		)	164.4			175.7
Intercompany Dividends	(6.4		)	(5.0		)	—			—			(6.4		)	(5.0		)
Total, as adjusted	$	162.4		$	182.4		$	(4.4	)	$	(11.7	)	$	158.0		$	170.7

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	1.6		$	1.8		$	—		$	—		$	1.6		$	1.8
Northwind Reinsurance Company	2.1			20.1			0.4			(0.2		)	2.5			19.9
UnumProvident International Ltd.	3.8			(9.9		)	(0.4		)	2.9			3.4			(7.0		)
Total	$	7.5		$	12.0		$	—		$	2.7		$	7.5		$	14.7

Note: Statutory results for our domestic insurers are reported in conformity with statutory accounting principles as prescribed by the National Association of Insurance Commissioners and adopted by the applicable state laws. For UnumProvident International Ltd., results are reported in conformity with accounting principles as prescribed by applicable Bermuda laws.

14.1

Unum Life Insurance Company of America - Statutory Basis

Group Accident and Health Statutory Claim Reserves and Liabilities, Net of Ceded

On Claims Incurred Prior to January 1



	2012			2011			2010
Reserve Balance from Prior Year End	$	6,755.9		$	6,829.4		$	6,880.9
Other Adjustments to Beginning Balance (see Schedule H)	—			(3.9		)	(4.5		)
Reserve Balance January 1 (a)	6,755.9			6,825.5			6,876.4
Paid on Prior Year Claims	(391.2		)	(390.5		)	(374.3		)
Interest Earned on Reserves	104.5			110.7			113.0
Incurred on Prior Year Claims	(109.9		)	(122.3		)	(113.1		)
Reserve Balance March 31	$	6,359.3		$	6,423.4		$	6,502.0

Reserve Balance March 31	$	6,359.3		$	6,423.4		$	6,502.0
Paid on Prior Year Claims	(335.8		)	(339.9		)	(324.2		)
Interest Earned on Reserves	96.6			104.0			108.2
Incurred on Prior Year Claims	(130.3		)	(107.5		)	(117.5		)
Reserve Balance June 30	$	5,989.8		$	6,080.0		$	6,168.5

Reserve Balance June 30				$	6,080.0		$	6,168.5
Paid on Prior Year Claims				(316.4		)	(304.0		)
Interest Earned on Reserves				98.9			103.1
Incurred on Prior Year Claims				(49.4		)	(75.1		)
Reserve Balance September 30				$	5,813.1		$	5,892.5

Reserve Balance September 30				$	5,813.1		$	5,892.5
Paid on Prior Year Claims				(291.7		)	(282.9		)
Interest Earned on Reserves				92.5			99.0
Incurred on Prior Year Claims				(111.4		)	(76.9		)
Reserve Balance December 31 on Prior Year Claims				5,502.5			5,631.7
Reserve Balance December 31 on Current Year Claims				1,253.4			1,197.7
Reserve Balance December 31 on Total Claims Incurred (b)				$	6,755.9		$	6,829.4

(a) balances to Schedule H Part 3 Line 3.2 Column 2
(b) balances to Schedule H Part 2 Line C.1 Column 2

14.2

Reconciliation to Unum Life Insurance Company of America - Statutory Basis

Schedule H Part 3 for Group Accident and Health



	2011			2010			2009
Paid on Prior Year Existing Claims - Full Year	$	1,338.5		$	1,285.4		$	1,301.2
(balances to Schedule H Part 3 Line 1.1 Column 2)

Incurred on Prior Year Claims - Full Year	$	(390.6	)	$	(382.6	)	$	(360.2	)
Interest Earned on Reserves - Full Year	406.1			423.3			427.1
Incurred on Prior Year Claims - Full Year, Excluding Interest Earned	$	15.5		$	40.7		$	66.9
(balances to Schedule H Part 3 Line 3.3 Column 2)

Note: Group A&H for Unum Life Insurance Company of America includes group long- and short-term disability, group accidental death & dismemberment, and group voluntary disability, cancer, and critical illness products reported in our Unum US segment as well as the reinsurance pools reported in our Closed Block segment.

14.3

Notes to Statistical Supplement

Non-GAAP Financial Measures

We analyze our Company's performance using non-GAAP financial measures which exclude certain items and the related tax thereon from net income. We believe operating income or loss excluding realized investment gains or losses and non-operating retirement-related gains or losses, both of which are recurring, is a better performance measure and a better indicator of the profitability and underlying trends in our business. Both realized investment gains or losses and non-operating retirement-related gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. The exclusion of these items from our performance does not replace net income or net loss as a measure of our overall profitability. We also believe book value per common share excluding the components of Accumulated Other Comprehensive Income, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures.

2012 Significant Transactions and Events

Accounting Standards Codification (ASC) 944 "Financial Services - Insurance”

In October 2010, the Financial Accounting Standards Board (FASB) issued an update to address the diversity in practice regarding the interpretation of which costs relating to the acquisition of new or renewal insurance contracts qualify as deferred acquisition costs. The amendments in the update require that only incremental direct costs associated with the successful acquisition of a new or renewal insurance contract can be capitalized. All other costs are to be expensed as incurred. We adopted this update effective January 1, 2012 and applied the amendments retrospectively, adjusting all prior periods.

Financing

At June 30, 2012, short-term debt consisted of $467.1 million of securities lending agreements. We also made principal payments of $29.2 million and $5.0 million on our senior secured non-recourse floating rate notes issued by Northwind Holdings, LLC (Northwind) and Tailwind Holdings, LLC (Tailwind), respectively, during the six months ended June 30, 2012.

Share Repurchase Program

For the three and six month periods ended June 30, 2012, we repurchased 6.0 million and 13.5 million shares on the open market at a cost of $125.1 million and $300.3 million, respectively, including commissions of $0.1 million and $0.3 million, respectively, under our February 2011 $1.0 billion stock repurchase program. The dollar value of shares remaining under the $1.0 billion repurchase program was $224.7 million at June 30, 2012.

In July 2012, our board of directors authorized a $750.0 million share repurchase program with an expiration date of January 2014. This program superseded and replaced the February 2011 $1.0 billion share repurchase program.

2011 Significant Transactions and Events

Conclusion of Long-term Care Strategic Review

Following a comprehensive and strategic review of our long-term care business, in February 2012 we announced that we would discontinue selling group long-term care. We discontinued selling individual long-term care during 2009. Because both group and individual long-term care are now considered closed blocks of business, effective



(continued on next page)	15

December 31, 2011, we reclassified our long-term care products from the Unum US segment to the Closed Block segment. We also reclassified our other insurance

products not actively marketed, including individual life and corporate-owned life insurance, reinsurance pools and management operations, group pension, health insurance, and individual annuities, which were previously reported in the Corporate and Other segment to the Closed Block segment. The inclusion of all closed blocks of business into one operating segment aligns with our reporting and monitoring of our closed blocks of business within a discrete segment and is consistent with our separation of these blocks of business from the lines of business which actively market new products. Prior period segment results have been restated to reflect these changes in our reporting classifications.

As part of the strategic review, and as is typical in the fourth quarter of each year, we analyzed our reserve assumptions for long-term care in conjunction with our annual loss recognition testing. We generally perform loss recognition tests on our deferred acquisition costs and policy reserves in the fourth quarter of each year, but more frequently if appropriate, using best estimate assumptions as of the date of the test. Included in the analysis was a review of our reserve discount rate assumptions and mortality and morbidity assumptions. Our analysis of reserve discount rate assumptions considered the significant decline in long-term interest rates which occurred late in the third quarter of 2011 due to the European Union debt crisis and the Federal Reserve's actions, including the announcement of "Operation Twist." We also considered an updated industry study for long-term care experience which was made available mid-year 2011 from the Society of Actuaries. Our analysis of this study, which was completed during the fourth quarter of 2011, showed that lower termination rates than we had previously assumed were beginning to emerge in industry and in our own company experience. Based on our analysis, as of December 31, 2011 we lowered the discount rate to reflect the low interest rate environment and our expectation of future investment portfolio yield rates. We also changed our mortality assumptions to reflect emerging experience due to an improvement in life expectancies which increases the ultimate number of people who will utilize long-term care benefits and also lengthens the amount of time a claimant receives long-term care benefits. We changed our morbidity assumptions to reflect emerging industry experience as well as our own company experience. While our morbidity experience is still emerging and is not fully credible, we modified our assumptions to align more closely with the recently published industry study. Using our revised best estimate assumptions, as of December 31, 2011 we determined that our deferred acquisition costs of $196.0 million were not recoverable and that our policy and claim reserves should be increased by $573.6 million to reflect our current estimate of future benefit obligations. These charges decreased our 2011 net income by $500.3 million. The increase in reserves represented a 10.5 percent increase in long-term care policy and claim reserves as of December 31, 2011, which equaled $5.4 billion subsequent to the charge.

Claim Reserve Increase for Individual Disability Closed Block Business

Claim reserves supporting our individual disability closed block of business are calculated using assumptions based on actual experience believed to be currently appropriate. Claim reserves are subject to revision as current claim experience emerges and alters our view of future expectations. Claim resolution rates, which measure the resolution of claims from recovery, deaths, settlements, and benefit expirations, are very sensitive to operational and environmental changes and can be volatile. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the life of the block of business. We are now able, with a higher degree of confidence, to assess our own experience for older ages in our long duration lifetime claim block as our data has become credible. There is very little industry experience for lifetime disability benefits, as our insurance companies were the primary disability companies in the insurance industry at the time lifetime disability benefits were offered. These benefits were offered during the 1980s and 1990s, recent enough such that claimants are just reaching the older ages and providing us with data to build our claim experience base. Emerging experience indicates a longer life expectancy for our older age, longer duration disabled claimants, which lengthens the time a claimant receives disability benefits. As a result of this experience, as of December 31, 2011 we adjusted our mortality assumption within our claim resolution rate assumption and, as a result, increased our claim reserves for our individual disability closed block of business by $183.5 million and decreased net income by $119.3 million. The increase in reserves represented a 1.5 percent increase in individual disability policy and claim reserves as of December 31, 2011, which equaled $11.9 billion subsequent to the charge.

Share Repurchase Program

In February 2011, our board of directors authorized the repurchase of up to $1.0 billion of Unum Group's common stock, in addition to the amount remaining to be repurchased under the May 2010 $500.0 million authorization. The $1.0 billion share repurchase program had an expiration date of August 2012.



(continued on next page)	15.1

In February 2011, we repurchased 7.1 million shares, at a cost of $200.0 million, using an accelerated repurchase agreement with a financial counterparty. As part of this transaction, we simultaneously entered into a forward contract indexed to the price of Unum Group common stock, which subjected the transaction to a future price adjustment. Under the terms of the repurchase agreement, we were to receive, or be required to pay, a price adjustment based on the volume weighted average price of Unum Group common stock during the term of the agreement, less a discount. Any price adjustment payable to us was to be settled in shares of Unum Group common stock. Any price adjustment we would have been required to pay would have been settled in either cash or common stock at our option. The final price adjustment settlement occurred in March 2011, resulting in the delivery to us of 0.6 million additional shares. In total, we repurchased and retired 7.7 million shares pursuant to the accelerated repurchase agreement, which completed the May 2010 $500.0 million repurchase authorization and initiated the $1.0 billion repurchase program.

In addition to these repurchases, during 2011, we repurchased an additional 17.7 million shares on the open market at a cost of $419.9 million, including commissions of $0.3 million. The dollar value of shares remaining under the $1.0 billion repurchase program at December 31, 2011 was $524.7 million.

Pursuant to these repurchase programs, we retired 7.7 million shares during 2011. All other repurchased shares are classified as treasury stock and accounted for using the cost method.

Income Tax

Our income tax for 2011 includes $41.3 million of tax benefits recognized due to a final settlement with the IRS with respect to our appeal of audit adjustments for the tax years 1996 to 2004. Our income tax for 2011 was unfavorably impacted by an $18.6 million tax charge related to the repatriation of £150.0 million of dividends from our U.K. subsidiaries.

Financing

During 2011, the remaining $225.1 million of our 7.625% senior notes due March 2011 matured. We also made principal payments of $74.4 million and $10.0 million on our senior secured non-recourse floating rate notes issued by Northwind and Tailwind, respectively, during 2011. At December 31, 2011, short-term debt consisted of $312.3 million of securities lending agreements.

2010 Significant Transactions and Events

Share Repurchase Program

In May 2010, our board of directors authorized the repurchase of up to $500.0 million of Unum Group's common stock. During 2010, we repurchased 16.4 million shares, at a cost of $356.0 million under this share repurchase program.

Financing

In 2010, we issued $400.0 million of unsecured senior notes in a public offering. These notes, due in 2020, bear interest at a fixed rate of 5.625% and are payable semi-annually.

During 2010, we made principal payments of $58.3 million and $10.0 million on our senior secured non-recourse floating rate notes issued by Northwind and Tailwind, respectively. We also purchased and retired $10.0 million of our 7.08% medium-term notes due 2024.



(continued on next page)	15.2

Tax Law Change

In March 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 were signed into law. Among other things, the new legislation reduces the tax benefits available to an employer that receives a postretirement prescription drug coverage subsidy from the federal government under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Under the new legislation, to the extent our future postretirement prescription drug coverage expenses are reimbursed under the subsidy program, the expenses covered by the subsidy will no longer be tax deductible after 2012. Employers that receive the subsidy must recognize the deferred tax effects relating to the future postretirement prescription drug coverage in the period the legislation was enacted. Our income tax expense for 2010 includes a non-cash tax charge of $10.2 million to reflect the impact of the tax law change.

2009 Significant Transactions and Events

Financing

In September 2009, we issued $350.0 million of unsecured senior notes in a public offering. These notes, due in 2016, bear interest at a fixed rate of 7.125% and are payable semi-annually.

During 2009, we made principal payments of $48.0 million and $10.0 million on our senior secured non-recourse variable rate notes issued by Northwind and Tailwind, respectively. We also purchased and retired the remaining $132.2 million of our 5.859% senior notes due May 2009, $1.2 million aggregate principal of our 7.19% medium-term notes due 2028, and $0.6 million aggregate principal of our 6.75% notes due 2028.

ASC 320 “Investments - Debt and Equity Securities”

In April 2009, the FASB issued a new accounting standard, now included in ASC 320, which amended the other-than-temporary impairment guidance for debt securities and expands and increases the frequency of previously existing disclosures for other-than-temporary impairments. The measure of impairment remains fair value. Under the standard, an other-than-temporary impairment must be recognized in earnings for a debt security in an unrealized loss position when an entity either (a) has the intent to sell the debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery. We adopted this standard effective April 1, 2009. The cumulative effect of applying the provisions of this standard increased the April 1, 2009 opening balance of retained earnings $14.3 million, net of tax of $7.7 million, with a corresponding adjustment to accumulated other comprehensive income (loss).



	15.3

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