Unum Group - FORM 8-K - EX-99.2 - EXHIBIT

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8-K - 8-K - Unum Group	unm9302012cover8-k.htm
EX-99.1 - EXHIBIT - Unum Group	unm9302012exhibit991.htm

Exhibit 99.2

Unum Group

Statistical Supplement Third 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					Nine Months Ended					Year Ended
	9/30/2012		9/30/2011			9/30/2012		9/30/2011			12/31/2011			12/31/2010		12/31/2009
			As Adjusted					As Adjusted			As Adjusted
Financial Results

Premium Income	$	1,929.4	$	1,881.2		$	5,778.9	$	5,625.7		$	7,514.2		$	7,431.4	$	7,475.5

Segment Operating Revenue	$	2,606.7	$	2,569.5		$	7,825.6	$	7,685.5		$	10,282.9		$	10,168.5	$	10,079.3
Net Realized Investment Gain (Loss)	21.3		(23.9		)	31.6		(12.3		)	(4.9		)	24.7		11.7

Total Revenue	$	2,628.0	$	2,545.6		$	7,857.2	$	7,673.2		$	10,278.0		$	10,193.2	$	10,091.0

Net Income	$	230.2	$	202.0		$	660.5	$	653.2		$	284.2		$	878.7	$	847.3

Assets						$	62,119.6	$	59,329.2		$	59,555.2		$	56,602.7	$	53,778.8

Stockholders' Equity						$	8,673.3	$	8,995.8		$	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 Per Common Share Information



	Three Months Ended				Nine Months Ended				Year Ended
	9/30/2012		9/30/2011		9/30/2012		9/30/2011		12/31/2011		12/31/2010		12/31/2009
			As Adjusted				As Adjusted		As Adjusted
Net Income
Assuming Dilution	$	0.83	$	0.68	$	2.32	$	2.13	$	0.94	$	2.69	$	2.55
Basic	$	0.83	$	0.68	$	2.33	$	2.14	$	0.94	$	2.70	$	2.56

Dividends Paid	$	0.130	$	0.105	$	0.340	$	0.290	$	0.395	$	0.350	$	0.315

Price (UNM closing price on last trading day of period)					$	19.22	$	20.96	$	21.07	$	24.22	$	19.52



	9/30/2012						9/30/2011						12/31/2011						12/31/2010						12/31/2009
	(in millions)			per share			(in millions)			per share			(in millions)			per share			(in millions)			per share			(in millions)			per share
							As Adjusted
Book Value
Total Stockholders' Equity, As Reported	$	8,673.3		$	31.53		$	8,995.8		$	30.77		$	8,169.7		$	27.91		$	8,484.9		$	26.80		$	8,045.0		$	24.25
Net Unrealized Gain on Securities	892.2			3.24			894.0			3.06			614.8			2.11			416.1			1.31			382.7			1.16
Net Gain on Cash Flow Hedges	400.3			1.46			421.1			1.44			408.7			1.39			361.0			1.14			370.8			1.12
Subtotal	7,380.8			26.83			7,680.7			26.27			7,146.2			24.41			7,707.8			24.35			7,291.5			21.97
Foreign Currency Translation Adjustment	(78.6		)	(0.29		)	(113.0		)	(0.39		)	(117.6		)	(0.41		)	(107.1		)	(0.34		)	(75.3		)	(0.23		)
Subtotal	7,459.4			27.12			7,793.7			26.66			7,263.8			24.82			7,814.9			24.69			7,366.8			22.20
Unrecognized Pension and Postretirement Benefit Costs	(423.6		)	(1.54		)	(303.6		)	(1.04		)	(444.1		)	(1.51		)	(318.6		)	(1.00		)	(330.7		)	(1.00		)
Total Stockholders' Equity, Excluding AOCI	$	7,883.0		$	28.66		$	8,097.3		$	27.70		$	7,707.9		$	26.33		$	8,133.5		$	25.69		$	7,697.5		$	23.20

1.1

Unum Group Consolidated Statements of Income



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Revenue
Premium Income	$	1,929.4		$	1,881.2		$	5,778.9		$	5,625.7		$	7,514.2		$	7,431.4		$	7,475.5
Net Investment Income	619.2			629.2			1,872.2			1,885.0			2,519.6			2,495.5			2,346.6
Net Realized Investment Gain (Loss)	21.3			(23.9		)	31.6			(12.3		)	(4.9		)	24.7			11.7
Other Income	58.1			59.1			174.5			174.8			249.1			241.6			257.2
Total Revenue	2,628.0			2,545.6			7,857.2			7,673.2			10,278.0			10,193.2			10,091.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,686.9			1,635.6			5,033.0			4,828.0			7,209.5			6,354.1			6,291.6
Commissions	227.7			220.5			690.8			662.7			879.2			855.4			837.1
Interest and Debt Expense - Non-recourse Debt	2.7			2.9			8.7			8.7			11.5			12.9			18.6
Interest and Debt Expense - All Other Debt	33.9			32.2			98.6			99.4			131.8			128.9			106.8
Deferral of Acquisition Costs	(111.0		)	(110.1		)	(347.6		)	(334.7		)	(442.5		)	(422.5		)	(410.9		)
Amortization of Deferred Acquisition Costs	87.0			84.3			285.6			273.9			365.7			373.3			351.9
Impairment of Deferred Acquisition Costs	—			—			—			—			196.0			—			—
Other Expenses	380.4			391.5			1,161.3			1,184.6			1,593.5			1,571.2			1,612.0
Total Benefits and Expenses	2,307.6			2,256.9			6,930.4			6,722.6			9,944.7			8,873.3			8,807.1

Income Before Income Tax	320.4			288.7			926.8			950.6			333.3			1,319.9			1,283.9
Income Tax Expense	90.2			86.7			266.3			297.4			49.1			441.2			436.6

Net Income	$	230.2		$	202.0		$	660.5		$	653.2		$	284.2		$	878.7		$	847.3

Average Weighted Shares Outstanding
Basic	278,354,416			298,185,758			284,012,762			305,694,451			302,399,783			325,839,020			331,266,247
Dilutive Securities:
Options and Other Nonvested Stock Awards	156,623			987,142			478,402			1,223,978			1,171,250			1,382,036			869,934
Assuming Dilution	278,511,039			299,172,900			284,491,164			306,918,429			303,571,033			327,221,056			332,136,181

Actual Number of Shares Outstanding							275,085,287			292,336,945			292,715,954			316,573,452			331,809,247

Unum Group Sales Data by Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012		9/30/2011		% Change		9/30/2012		9/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009

Unum US	$	122.8	$	117.8	4.2	%	$	479.3	$	438.9	9.2	%	$	707.3	$	643.4	$	683.1

Unum UK	£	10.7	£	13.3	(19.5	)	£	45.6	£	38.8	17.5		£	62.7	£	77.2	£	77.9

Colonial Life	$	78.4	$	83.2	(5.8	)	$	235.3	$	239.5	(1.8	)	$	365.9	$	358.8	$	343.8

Unum Group Sales Data for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012		9/30/2011		% Change		9/30/2012		9/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009
Sales by Product
Group Disability, Group Life, and AD&D
Group Long-term Disability	$	23.6	$	22.0	7.3	%	$	95.4	$	89.8	6.2	%	$	165.0	$	148.2	$	182.1
Group Short-term Disability	14.1		12.4		13.7		51.1		44.1		15.9		84.9		80.3		83.9
Group Life	24.5		25.2		(2.8	)	102.7		96.9		6.0		185.3		166.9		184.9
AD&D	2.2		2.6		(15.4	)	10.0		8.9		12.4		17.6		18.1		18.7
Subtotal	64.4		62.2		3.5		259.2		239.7		8.1		452.8		413.5		469.6
Supplemental and Voluntary
Individual Disability - Recently Issued	14.6		12.9		13.2		44.8		40.6		10.3		55.6		42.7		51.6
Voluntary Benefits	43.8		42.7		2.6		175.3		158.6		10.5		198.9		187.2		161.9
Subtotal	58.4		55.6		5.0		220.1		199.2		10.5		254.5		229.9		213.5

Total Sales	$	122.8	$	117.8	4.2		$	479.3	$	438.9	9.2		$	707.3	$	643.4	$	683.1

Sales by Market Sector
Group Disability, Group Life, and AD&D
Core Market (< 2,000 lives)	$	52.3	$	50.0	4.6		$	193.8	$	177.3	9.3		$	322.1	$	294.0	$	320.6
Large Case Market	12.1		12.2		(0.8	)	65.4		62.4		4.8		130.7		119.5		149.0
Subtotal	64.4		62.2		3.5		259.2		239.7		8.1		452.8		413.5		469.6

Supplemental and Voluntary	58.4		55.6		5.0		220.1		199.2		10.5		254.5		229.9		213.5

Total Sales	$	122.8	$	117.8	4.2		$	479.3	$	438.9	9.2		$	707.3	$	643.4	$	683.1

3.1

Unum Group Sales Data for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012		9/30/2011		% Change		9/30/2012		9/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009
Group Long-term Disability	$	10.4	$	9.9	5.1	%	$	35.1	$	30.7	14.3	%	$	47.8	$	53.1	$	56.8
Group Life	5.6		9.0		(37.8	)	32.7		25.5		28.2		43.8		57.3		53.8
Supplemental and Voluntary	1.0		2.4		(58.3	)	4.0		6.4		(37.5	)	8.6		8.8		12.6
Total Sales	$	17.0	$	21.3	(20.2	)	$	71.8	$	62.6	14.7		$	100.2	$	119.2	$	123.2

(in millions of pounds)
Group Long-term Disability	£	6.5	£	6.1	6.6	%	£	22.2	£	19.0	16.8	%	£	29.8	£	34.4	£	36.5
Group Life	3.5		5.7		(38.6	)	20.8		15.8		31.6		27.5		37.1		33.4
Supplemental and Voluntary	0.7		1.5		(53.3	)	2.6		4.0		(35.0	)	5.4		5.7		8.0
Total Sales	£	10.7	£	13.3	(19.5	)	£	45.6	£	38.8	17.5		£	62.7	£	77.2	£	77.9

Unum Group Sales Data for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012		9/30/2011		% Change		9/30/2012		9/30/2011		% Change		12/31/2011		12/31/2010		12/31/2009
Accident, Sickness, and Disability	$	51.6	$	55.9	(7.7	)%	$	154.8	$	161.5	(4.1	)%	$	242.9	$	237.4	$	221.1
Life	14.4		14.4		—		44.2		42.7		3.5		65.5		65.7		68.3
Cancer and Critical Illness	12.4		12.9		(3.9	)	36.3		35.3		2.8		57.5		55.7		54.4
Total Sales	$	78.4	$	83.2	(5.8	)	$	235.3	$	239.5	(1.8	)	$	365.9	$	358.8	$	343.8

3.2

Unum Group Consolidated Balance Sheets



	September 30,			December 31,
	2012			2011			2010
Assets				As Adjusted
Investments
Fixed Maturity Securities	$	44,744.7		$	42,486.7		$	40,035.6
Mortgage Loans	1,665.2			1,612.3			1,516.8
Policy Loans	3,117.0			3,051.4			2,996.1
Other Long-term Investments	650.9			639.2			529.3
Short-term Investments	1,590.2			1,423.5			1,163.1
Total Investments	51,768.0			49,213.1			46,240.9

Cash and Bank Deposits	53.6			116.6			53.6
Accounts and Premiums Receivable	1,704.9			1,672.2			1,665.8
Reinsurance Recoverable	4,824.7			4,854.6			4,827.9
Accrued Investment Income	696.8			681.8			669.8
Deferred Acquisition Costs	1,728.3			1,677.1			1,816.1
Goodwill	201.6			201.2			201.2
Property and Equipment	497.7			493.3			476.8
Other Assets	644.0			645.3			650.6
Total Assets	$	62,119.6		$	59,555.2		$	56,602.7

Liabilities
Policy and Contract Benefits	$	1,442.8		$	1,494.0		$	1,565.0
Reserves for Future Policy and Contract Benefits	44,537.7			43,051.9			39,715.0
Unearned Premiums	497.2			433.2			436.7
Other Policyholders' Funds	1,629.4			1,625.9			1,669.7
Income Tax Payable	47.5			38.2			135.7
Deferred Income Tax	347.2			44.7			171.7
Short-term Debt	458.3			312.3			225.1
Long-term Debt - Non-recourse	586.9			632.5			716.9
Long-term Debt - All Other	2,194.6			1,937.7			1,914.4
Other Liabilities	1,704.7			1,815.1			1,567.6
Total Liabilities	53,446.3			51,385.5			48,117.8

Stockholders’ Equity
Common Stock	36.0			35.9			36.5
Additional Paid-in Capital	2,604.2			2,591.1			2,615.4
Accumulated Other Comprehensive Income (Loss)
Net Unrealized Gain on Securities	892.2			614.8			416.1
Net Gain on Cash Flow Hedges	400.3			408.7			361.0
Foreign Currency Translation Adjustment	(78.6		)	(117.6		)	(107.1		)
Unrecognized Pension and Postretirement Benefit Costs	(423.6		)	(444.1		)	(318.6		)
Retained Earnings	7,173.4			6,611.0			6,591.8
Treasury Stock	(1,930.6		)	(1,530.1		)	(1,110.2		)
Total Stockholders’ Equity	8,673.3			8,169.7			8,484.9
Total Liabilities and Stockholders’ Equity	$	62,119.6		$	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	182.8			9.9			154.9			—			347.6
Amortized	(149.1		)	(11.8		)	(124.7		)	—			(285.6		)
Adjustment Related to Unrealized Investment Gains/Losses	(1.0		)	—			(11.3		)	—			(12.3		)
Foreign Currency	—			1.5			—			—			1.5
Balances at September 30, 2012	$	1,004.5		$	40.5		$	683.3		$	—		$	1,728.3

4.1

Unum Group Balance Sheets by Segment - September 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	$	10,112.5		$	2,577.8	$	4,117.3	$	16,807.6	$	3,686.8	$	2,461.7	$	27,123.6	$	1,688.3		$	51,768.0
Deferred Acquisition Costs	43.6			37.0		923.9		1,004.5		40.5		683.3		—		—			1,728.3
Goodwill	2.5			—		187.5		190.0		11.6		—		—		—			201.6
All Other	572.2			138.4		422.3		1,132.9		206.5		212.9		5,595.3		1,274.1			8,421.7
Total Assets	$	10,730.8		$	2,753.2	$	5,651.0	$	19,135.0	$	3,945.4	$	3,357.9	$	32,718.9	$	2,962.4		$	62,119.6

Liabilities
Reserves and Policyholder Benefits	$	8,895.7		$	1,720.1	$	3,421.6	$	14,037.4	$	2,817.8	$	1,844.9	$	29,407.0	$	—		$	48,107.1
Debt	68.0			—		—		68.0		—		—		566.0		2,605.8			3,239.8
All Other	243.4			49.7		404.0		697.1		121.1		289.2		107.4		884.6			2,099.4
Total Liabilities	9,207.1			1,769.8		3,825.6		14,802.5		2,938.9		2,134.1		30,080.4		3,490.4			53,446.3

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,529.1			926.7		1,649.3		4,105.1		818.8		1,071.3		2,236.9		(851.3		)	7,380.8
Net Unrealized Gain/Loss on Securities and Net Gain on Cash Flow Hedges	(5.4		)	56.7		176.1		227.4		187.7		152.5		401.6		323.3			1,292.5
Total Allocated Stockholders' Equity	1,523.7			983.4		1,825.4		4,332.5		1,006.5		1,223.8		2,638.5		(528.0		)	8,673.3

Total Liabilities and Allocated Stockholders' Equity	$	10,730.8		$	2,753.2	$	5,651.0	$	19,135.0	$	3,945.4	$	3,357.9	$	32,718.9	$	2,962.4		$	62,119.6

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						Nine Months Ended
	9/30/2012		9/30/2011		% Change		9/30/2012		9/30/2011		% Change
			As Adjusted						As Adjusted
Premium Income
Unum US	$	1,111.9	$	1,074.4	3.5	%	$	3,338.9	$	3,213.0	3.9	%
Unum UK	175.2		175.5		(0.2	)	519.1		518.4		0.1
Colonial Life	299.4		283.7		5.5		892.6		846.1		5.5
Closed Block	342.9		347.6		(1.4	)	1,028.3		1,048.2		(1.9	)
	1,929.4		1,881.2		2.6		5,778.9		5,625.7		2.7
Net Investment Income
Unum US	236.3		240.0		(1.5	)	711.8		712.6		(0.1	)
Unum UK	34.8		43.3		(19.6	)	120.5		139.3		(13.5	)
Colonial Life	33.9		32.5		4.3		103.5		99.6		3.9
Closed Block	307.3		300.1		2.4		913.4		888.9		2.8
Corporate	6.9		13.3		(48.1	)	23.0		44.6		(48.4	)
	619.2		629.2		(1.6	)	1,872.2		1,885.0		(0.7	)
Other Income
Unum US	31.3		30.4		3.0		93.1		90.9		2.4
Unum UK	—		—		—		0.1		0.1		—
Colonial Life	—		0.1		(100.0	)	0.2		0.4		(50.0	)
Closed Block	26.4		26.4		—		78.9		80.6		(2.1	)
Corporate	0.4		2.2		(81.8	)	2.2		2.8		(21.4	)
	58.1		59.1		(1.7	)	174.5		174.8		(0.2	)
Total Operating Revenue
Unum US	1,379.5		1,344.8		2.6		4,143.8		4,016.5		3.2
Unum UK	210.0		218.8		(4.0	)	639.7		657.8		(2.8	)
Colonial Life	333.3		316.3		5.4		996.3		946.1		5.3
Closed Block	676.6		674.1		0.4		2,020.6		2,017.7		0.1
Corporate	7.3		15.5		(52.9	)	25.2		47.4		(46.8	)
	2,606.7		2,569.5		1.4		7,825.6		7,685.5		1.8

Unum Group Financial Results by Segment



	Three Months Ended								Nine Months Ended
	9/30/2012			9/30/2011			% Change		9/30/2012			9/30/2011			% Change
				As Adjusted								As Adjusted
Benefits and Expenses
Unum US	$	1,163.2		$	1,135.6		2.4	%	$	3,508.9		$	3,407.0		3.0	%
Unum UK	182.5			184.1			(0.9	)	543.4			519.0			4.7
Colonial Life	264.6			249.6			6.0		790.3			741.0			6.7
Closed Block	651.0			643.3			1.2		1,953.9			1,924.6			1.5
Corporate	34.7			36.3			(4.4	)	99.1			107.0			(7.4	)
	2,296.0			2,248.9			2.1		6,895.6			6,698.6			2.9
Income (Loss) Before Income Tax, Net Realized Investment Gains and Losses, and Non-operating Retirement-related Loss
Unum US	216.3			209.2			3.4		634.9			609.5			4.2
Unum UK	27.5			34.7			(20.7	)	96.3			138.8			(30.6	)
Colonial Life	68.7			66.7			3.0		206.0			205.1			0.4
Closed Block	25.6			30.8			(16.9	)	66.7			93.1			(28.4	)
Corporate	(27.4		)	(20.8		)	(31.7	)	(73.9		)	(59.6		)	(24.0	)
	310.7			320.6			(3.1	)	930.0			986.9			(5.8	)
Income Tax Expense	86.7			97.5			(11.1	)	267.5			309.7			(13.6	)

Income Before Net Realized Investment Gains and Losses and Non-operating Retirement-related Loss	224.0			223.1			0.4		662.5			677.2			(2.2	)

Net Realized Investment Gain (Loss)	21.3			(23.9		)	189.1		31.6			(12.3		)	N.M.

Tax (Expense) Benefit on Net Realized Investment Gain (Loss)	(7.5		)	8.0			(193.8	)	(10.9		)	3.9			N.M.

Non-operating Retirement-related Loss	(11.6		)	(8.0		)	(45.0	)	(34.8		)	(24.0		)	(45.0	)

Tax Benefit on Non-operating Retirement-related Loss	4.0			2.8			42.9		12.1			8.4			44.0

Net Income	$	230.2		$	202.0		14.0		$	660.5		$	653.2		1.1

5.1

Unum Group Quarterly Historical Financial Results by Segment



	9/30/2012		6/30/2012		3/31/2012		12/31/2011		9/30/2011		6/30/2011			3/31/2011		12/31/2010		9/30/2010
							As Adjusted
Premium Income
Unum US	$	1,111.9	$	1,115.0	$	1,112.0	$	1,083.0	$	1,074.4	$	1,069.8		$	1,068.8	$	1,060.3	$	1,061.2
Unum UK	175.2		173.2		170.7		169.2		175.5		175.8			167.1		170.5		161.4
Colonial Life	299.4		296.9		296.3		289.2		283.7		282.0			280.4		273.6		269.3
Closed Block	342.9		342.5		342.9		347.1		347.6		347.4			353.2		363.8		358.3
	1,929.4		1,927.6		1,921.9		1,888.5		1,881.2		1,875.0			1,869.5		1,868.2		1,850.2
Net Investment Income
Unum US	236.3		236.9		238.6		238.8		240.0		238.9			233.7		242.3		232.1
Unum UK	34.8		49.2		36.5		50.6		43.3		51.1			44.9		48.6		39.0
Colonial Life	33.9		34.0		35.6		32.8		32.5		35.8			31.3		31.4		31.9
Closed Block	307.3		304.5		301.6		300.8		300.1		294.5			294.3		291.8		290.8
Corporate	6.9		8.9		7.2		11.6		13.3		16.8			14.5		20.2		24.6
	619.2		633.5		619.5		634.6		629.2		637.1			618.7		634.3		618.4
Other Income
Unum US	31.3		30.7		31.1		30.7		30.4		29.5			31.0		32.6		29.6
Unum UK	—		—		0.1		0.2		—		—			0.1		0.1		0.2
Colonial Life	—		0.1		0.1		0.1		0.1		0.2			0.1		0.2		0.2
Closed Block	26.4		26.6		25.9		25.5		26.4		26.7			27.5		28.6		27.8
Corporate	0.4		1.5		0.3		17.8		2.2		(0.4		)	1.0		1.6		0.4
	58.1		58.9		57.5		74.3		59.1		56.0			59.7		63.1		58.2
Total Operating Revenue
Unum US	1,379.5		1,382.6		1,381.7		1,352.5		1,344.8		1,338.2			1,333.5		1,335.2		1,322.9
Unum UK	210.0		222.4		207.3		220.0		218.8		226.9			212.1		219.2		200.6
Colonial Life	333.3		331.0		332.0		322.1		316.3		318.0			311.8		305.2		301.4
Closed Block	676.6		673.6		670.4		673.4		674.1		668.6			675.0		684.2		676.9
Corporate	7.3		10.4		7.5		29.4		15.5		16.4			15.5		21.8		25.0
	2,606.7		2,620.0		2,598.9		2,597.4		2,569.5		2,568.1			2,547.9		2,565.6		2,526.8

Unum Group Quarterly Historical Financial Results by Segment



	9/30/2012			6/30/12			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			12/31/10			9/30/10
										As Adjusted
Benefits and Expenses
Unum US	$	1,163.2		$	1,169.9		$	1,175.8		$	1,145.1		$	1,135.6		$	1,132.6		$	1,138.8		$	1,140.5		$	1,131.9
Unum UK	182.5			192.4			168.5			168.1			184.1			171.7			163.2			171.4			152.8
Colonial Life	264.6			263.4			262.3			257.1			249.6			246.1			245.3			247.8			230.4
Closed Block	651.0			647.9			655.0			1,595.7			643.3			638.2			643.1			655.0			647.2
Corporate	34.7			36.3			28.1			48.2			36.3			33.4			37.3			37.6			34.1
	2,296.0			2,309.9			2,289.7			3,214.2			2,248.9			2,222.0			2,227.7			2,252.3			2,196.4
Income (Loss) Before Income Tax, Net Realized Investment Gains and Losses, and Non-operating Retirement-related Loss
Unum US	216.3			212.7			205.9			207.4			209.2			205.6			194.7			194.7			191.0
Unum UK	27.5			30.0			38.8			51.9			34.7			55.2			48.9			47.8			47.8
Colonial Life	68.7			67.6			69.7			65.0			66.7			71.9			66.5			57.4			71.0
Closed Block	25.6			25.7			15.4			(922.3		)	30.8			30.4			31.9			29.2			29.7
Corporate	(27.4		)	(25.9		)	(20.6		)	(18.8		)	(20.8		)	(17.0		)	(21.8		)	(15.8		)	(9.1		)
	310.7			310.1			309.2			(616.8		)	320.6			346.1			320.2			313.3			330.4
Income Tax Expense (Benefit)	86.7			84.8			96.0			(248.1		)	97.5			111.1			101.1			101.3			107.1

Income (Loss) Before Net Realized Investment Gain and Loss and Non-operating Retirement-related Loss	224.0			225.3			213.2			(368.7		)	223.1			235.0			219.1			212.0			223.3

Net Realized Investment Gain (Loss)	21.3			(2.1		)	12.4			7.4			(23.9		)	(3.6		)	15.2			27.5			1.1

Tax (Expense) Benefit on Net Realized Investment Gain (Loss)	(7.5		)	0.7			(4.1		)	(2.6		)	8.0			1.4			(5.5		)	(10.3		)	(0.2		)

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

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

Net Income (Loss)	$	230.2		$	216.4		$	213.9		$	(369.0	)	$	202.0		$	227.6		$	223.6		$	223.9		$	218.9

Net Income (Loss) Per Common Share - Assuming Dilution	$	0.83		$	0.76		$	0.73		$	(1.26	)	$	0.68		$	0.74		$	0.71		$	0.70		$	0.67

6.1

Unum Group Financial Results for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income	$	1,111.9		$	1,074.4		$	3,338.9		$	3,213.0		$	4,296.0		$	4,255.4		$	4,278.4
Net Investment Income	236.3			240.0			711.8			712.6			951.4			941.5			934.3
Other Income	31.3			30.4			93.1			90.9			121.6			122.8			118.8
Total	1,379.5			1,344.8			4,143.8			4,016.5			5,369.0			5,319.7			5,331.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	811.7			782.3			2,422.3			2,325.8			3,113.5			3,124.4			3,192.1
Commissions	124.4			119.5			383.4			360.7			474.0			460.6			448.3
Interest and Debt Expense	0.2			0.3			0.8			0.8			1.0			1.2			2.0
Deferral of Acquisition Costs	(56.6		)	(55.0		)	(182.8		)	(168.2		)	(220.3		)	(207.8		)	(209.3		)
Amortization of Deferred Acquisition Costs	42.3			41.6			149.1			140.6			188.1			192.6			180.1
Other Expenses	241.2			246.9			736.1			747.3			995.8			979.7			999.3
Total	1,163.2			1,135.6			3,508.9			3,407.0			4,552.1			4,550.7			4,612.5

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	216.3		$	209.2		$	634.9		$	609.5		$	816.9		$	769.0		$	719.0

Operating Ratios (% of Premium Income):
Benefit Ratio	73.0		%	72.8		%	72.5		%	72.4		%	72.5		%	73.4		%	74.6		%
Other Expense Ratio	21.7		%	23.0		%	22.0		%	23.3		%	23.2		%	23.0		%	23.4		%
Before-tax Operating Income Ratio	19.5		%	19.5		%	19.0		%	19.0		%	19.0		%	18.1		%	16.8		%

Unum Group Financial Results for Unum US Group Disability



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Long-term Disability	$	392.4		$	393.7		$	1,185.7		$	1,185.3		$	1,580.2		$	1,639.4		$	1,726.9
Group Short-term Disability	120.1			115.2			356.0			339.0			455.2			430.9			432.8
Total Premium Income	512.5			508.9			1,541.7			1,524.3			2,035.4			2,070.3			2,159.7
Net Investment Income	142.9			153.0			432.3			454.2			605.0			614.6			629.4
Other Income	23.4			23.1			70.0			67.1			89.4			86.7			88.9
Total	678.8			685.0			2,044.0			2,045.6			2,729.8			2,771.6			2,878.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	435.1			435.0			1,307.6			1,289.4			1,722.1			1,747.8			1,862.8
Commissions	39.4			39.9			120.1			120.2			159.5			159.7			162.2
Interest and Debt Expense	0.2			0.3			0.8			0.8			1.0			1.2			2.0
Deferral of Acquisition Costs	(5.6		)	(5.3		)	(17.5		)	(16.0		)	(21.9		)	(18.2		)	(24.1		)
Amortization of Deferred Acquisition Costs	4.6			5.0			13.3			14.9			19.8			20.5			24.2
Other Expenses	130.6			137.4			400.1			411.1			547.0			543.7			572.6
Total	604.3			612.3			1,824.4			1,820.4			2,427.5			2,454.7			2,599.7

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	74.5		$	72.7		$	219.6		$	225.2		$	302.3		$	316.9		$	278.3

Operating Ratios (% of Premium Income):
Benefit Ratio	84.9		%	85.5		%	84.8		%	84.6		%	84.6		%	84.4		%	86.3		%
Other Expense Ratio	25.5		%	27.0		%	26.0		%	27.0		%	26.9		%	26.3		%	26.5		%
Before-tax Operating Income Ratio	14.5		%	14.3		%	14.2		%	14.8		%	14.9		%	15.3		%	12.9		%

Premium Persistency:
Group Long-term Disability							90.7		%	90.1		%	90.2		%	89.4		%	86.9		%
Group Short-term Disability							88.5		%	90.2		%	89.9		%	88.6		%	86.8		%

Case Persistency:
Group Long-term Disability							88.3		%	88.7		%	89.0		%	88.4		%	87.4		%
Group Short-term Disability							88.1		%	87.8		%	88.0		%	87.3		%	86.5		%

7.1

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



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Life	$	297.3		$	277.6		$	885.1		$	825.3		$	1,106.7		$	1,090.3		$	1,057.7
Accidental Death & Dismemberment	29.2			27.7			86.2			81.6			109.2			106.1			104.9
Total Premium Income	326.5			305.3			971.3			906.9			1,215.9			1,196.4			1,162.6
Net Investment Income	35.9			33.7			109.0			101.6			135.5			129.6			126.5
Other Income	0.6			0.5			1.5			1.7			2.2			2.4			1.9
Total	363.0			339.5			1,081.8			1,010.2			1,353.6			1,328.4			1,291.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	236.0			214.3			699.9			636.1			854.6			839.9			815.5
Commissions	26.1			24.2			78.2			71.1			95.5			89.3			85.4
Deferral of Acquisition Costs	(4.9		)	(4.3		)	(15.0		)	(13.7		)	(18.5		)	(15.4		)	(16.4		)
Amortization of Deferred Acquisition Costs	3.3			3.4			10.0			10.6			14.2			14.1			15.3
Other Expenses	46.4			49.6			142.9			150.2			199.3			196.5			197.6
Total	306.9			287.2			916.0			854.3			1,145.1			1,124.4			1,097.4

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	56.1		$	52.3		$	165.8		$	155.9		$	208.5		$	204.0		$	193.6

Operating Ratios (% of Premium Income):
Benefit Ratio	72.3		%	70.2		%	72.1		%	70.1		%	70.3		%	70.2		%	70.1		%
Other Expense Ratio	14.2		%	16.2		%	14.7		%	16.6		%	16.4		%	16.4		%	17.0		%
Before-tax Operating Income Ratio	17.2		%	17.1		%	17.1		%	17.2		%	17.1		%	17.1		%	16.7		%

Premium Persistency:
Group Life							91.1		%	87.7		%	88.0		%	91.5		%	86.9		%
Accidental Death & Dismemberment							90.8		%	87.8		%	88.2		%	90.7		%	88.1		%

Case Persistency:
Group Life							88.0		%	88.5		%	88.6		%	88.3		%	87.2		%
Accidental Death & Dismemberment							88.2		%	88.5		%	88.6		%	88.4		%	87.2		%

7.2

Unum Group Financial Results for Unum US Supplemental and Voluntary



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Individual Disability - Recently Issued	$	119.9		$	116.6		$	357.0		$	348.3		$	464.7		$	457.9		$	463.7
Voluntary Benefits	153.0			143.6			468.9			433.5			580.0			530.8			492.4
Total Premium Income	272.9			260.2			825.9			781.8			1,044.7			988.7			956.1
Net Investment Income	57.5			53.3			170.5			156.8			210.9			197.3			178.4
Other Income	7.3			6.8			21.6			22.1			30.0			33.7			28.0
Total	337.7			320.3			1,018.0			960.7			1,285.6			1,219.7			1,162.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	140.6			133.0			414.8			400.3			536.8			536.7			513.8
Commissions	58.9			55.4			185.1			169.4			219.0			211.6			200.7
Deferral of Acquisition Costs	(46.1		)	(45.4		)	(150.3		)	(138.5		)	(179.9		)	(174.2		)	(168.8		)
Amortization of Deferred Acquisition Costs	34.4			33.2			125.8			115.1			154.1			158.0			140.6
Other Expenses	64.2			59.9			193.1			186.0			249.5			239.5			229.1
Total	252.0			236.1			768.5			732.3			979.5			971.6			915.4

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	85.7		$	84.2		$	249.5		$	228.4		$	306.1		$	248.1		$	247.1

Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability - Recently Issued	53.0		%	52.1		%	52.2		%	52.1		%	52.2		%	53.3		%	51.4		%
Voluntary Benefits	50.4		%	50.3		%	48.7		%	50.5		%	50.7		%	55.1		%	56.0		%
Other Expense Ratio	23.5		%	23.0		%	23.4		%	23.8		%	23.9		%	24.2		%	24.0		%
Before-tax Operating Income Ratio	31.4		%	32.4		%	30.2		%	29.2		%	29.3		%	25.1		%	25.8		%

Interest Adjusted Loss Ratio:
Individual Disability - Recently Issued	31.7		%	30.7		%	30.9		%	30.8		%	30.8		%	32.5		%	32.5		%

Premium Persistency:
Individual Disability - Recently Issued							90.8		%	89.8		%	89.3		%	90.7		%	89.6		%
Voluntary Benefits							79.2		%	79.6		%	80.5		%	80.1		%	79.9		%

7.3

Unum Group Financial Results for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Long-term Disability	$	102.9		$	107.3		$	306.5		$	318.3		$	419.6		$	421.2		$	482.4
Group Life	56.4			52.1			164.6			151.6			203.6			171.6			147.8
Supplemental and Voluntary	15.9			16.1			48.0			48.5			64.4			57.8			55.9
Total Premium Income	175.2			175.5			519.1			518.4			687.6			650.6			686.1
Net Investment Income	34.8			43.3			120.5			139.3			189.9			170.5			124.5
Other Income	—			—			0.1			0.1			0.3			1.2			2.4
Total	210.0			218.8			639.7			657.8			877.8			822.3			813.0

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	136.2			138.3			407.7			376.8			493.8			435.8			373.6
Commissions	11.1			11.0			31.7			33.3			45.7			44.1			46.7
Deferral of Acquisition Costs	(2.8		)	(3.6		)	(9.9		)	(11.2		)	(15.4		)	(15.1		)	(13.7		)
Amortization of Deferred Acquisition Costs	3.8			3.9			11.8			11.5			15.3			13.6			12.7
Other Expenses	34.2			34.5			102.1			108.6			147.7			134.9			141.7
Total	182.5			184.1			543.4			519.0			687.1			613.3			561.0

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	27.5		$	34.7		$	96.3		$	138.8		$	190.7		$	209.0		$	252.0

Operating Ratios (% of Premium Income):
Benefit Ratio	77.7		%	78.8		%	78.5		%	72.7		%	71.8		%	67.0		%	54.5		%
Other Expense Ratio	19.5		%	19.7		%	19.7		%	20.9		%	21.5		%	20.7		%	20.7		%
Before-tax Operating Income Ratio	15.7		%	19.8		%	18.6		%	26.8		%	27.7		%	32.1		%	36.7		%

Premium Persistency:
Group Long-term Disability							82.9		%	87.1		%	86.6		%	91.3		%	88.5		%
Group Life							80.3		%	88.7		%	89.3		%	92.7		%	80.1		%
Supplemental and Voluntary							87.0		%	87.8		%	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						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Group Long-term Disability	£	65.0		£	66.6		£	194.1		£	197.1		£	261.6		£	272.3		£	309.0
Group Life	35.7			32.4			104.3			93.9			127.0			110.9			94.1
Supplemental and Voluntary	10.1			10.1			30.4			30.1			40.1			37.4			35.6
Total Premium Income	110.8			109.1			328.8			321.1			428.7			420.6			438.7
Net Investment Income	22.1			26.9			76.4			86.2			118.4			110.2			79.6
Other Income	(0.1		)	—			—			0.1			0.1			0.9			1.6
Total	132.8			136.0			405.2			407.4			547.2			531.7			519.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	86.2			85.8			258.1			233.3			307.7			281.4			238.3
Commissions	7.0			6.8			20.1			20.6			28.5			28.5			29.8
Deferral of Acquisition Costs	(1.8		)	(2.2		)	(6.3		)	(6.9		)	(9.5		)	(9.6		)	(8.7		)
Amortization of Deferred Acquisition Costs	2.5			2.4			7.5			7.1			9.4			8.6			8.2
Other Expenses	21.6			21.7			64.7			67.4			92.1			87.4			90.2
Total	115.5			114.5			344.1			321.5			428.2			396.3			357.8

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	£	17.3		£	21.5		£	61.1		£	85.9		£	119.0		£	135.4		£	162.1

Weighted Average Pound/Dollar Exchange Rate	1.590			1.608			1.576			1.616			1.603			1.543			1.554

8.1

Unum Group Financial Results for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	181.8		$	174.3		$	541.8		$	519.7		$	695.3		$	661.0		$	625.8
Life	52.2			47.0			156.3			140.0			190.7			176.5			165.6
Cancer and Critical Illness	65.4			62.4			194.5			186.4			249.3			238.2			223.7
Total Premium Income	299.4			283.7			892.6			846.1			1,135.3			1,075.7			1,015.1
Net Investment Income	33.9			32.5			103.5			99.6			132.4			122.5			114.3
Other Income	—			0.1			0.2			0.4			0.5			0.7			0.5
Total	333.3			316.3			996.3			946.1			1,268.2			1,198.9			1,129.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	158.5			149.1			468.7			437.5			589.4			534.7			480.6
Commissions	64.0			61.8			191.2			183.5			245.9			232.6			215.3
Deferral of Acquisition Costs	(51.6		)	(50.6		)	(154.9		)	(152.7		)	(203.1		)	(196.8		)	(182.3		)
Amortization of Deferred Acquisition Costs	40.9			35.7			124.7			111.5			151.2			150.1			143.6
Other Expenses	52.8			53.6			160.6			161.2			214.7			208.6			203.6
Total	264.6			249.6			790.3			741.0			998.1			929.2			860.8

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	68.7		$	66.7		$	206.0		$	205.1		$	270.1		$	269.7		$	269.1

Operating Ratios (% of Premium Income):
Benefit Ratio	52.9		%	52.6		%	52.5		%	51.7		%	51.9		%	49.7		%	47.3		%
Other Expense Ratio	17.6		%	18.9		%	18.0		%	19.1		%	18.9		%	19.4		%	20.1		%
Before-tax Operating Income Ratio	22.9		%	23.5		%	23.1		%	24.2		%	23.8		%	25.1		%	26.5		%

Persistency:
Accident, Sickness, and Disability							75.3		%	73.7		%	73.8		%	75.9		%	74.4		%
Life							85.2		%	85.3		%	85.0		%	86.0		%	84.7		%
Cancer and Critical Illness							84.3		%	84.0		%	84.0		%	84.9		%	83.8		%

Unum Group Financial Results for Closed Block Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Premium Income
Individual Disability	$	183.1		$	196.4		$	554.9		$	595.0		$	787.0		$	847.0		$	898.5
Long-term Care	159.4			152.1			471.5			453.5			608.1			599.2			594.7
All Other	0.4			(0.9		)	1.9			(0.3		)	0.2			3.5			2.7
Total Premium Income	342.9			347.6			1,028.3			1,048.2			1,395.3			1,449.7			1,495.9
Net Investment Income	307.3			300.1			913.4			888.9			1,189.7			1,166.4			1,106.8
Other Income	26.4			26.4			78.9			80.6			106.1			113.6			131.1
Total	676.6			674.1			2,020.6			2,017.7			2,691.1			2,729.7			2,733.8

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	580.5			565.9			1,734.3			1,687.9			3,012.8			2,259.2			2,245.3
Commissions	28.2			28.2			84.5			85.2			113.6			118.1			126.8
Interest and Debt Expense	2.5			2.6			7.9			7.9			10.5			11.7			16.6
Deferral of Acquisition Costs	—			(0.9		)	—			(2.6		)	(3.7		)	(2.8		)	(5.6		)
Amortization of Deferred Acquisition Costs	—			3.1			—			10.3			11.1			17.0			15.5
Impairment of Long-term Care Deferred Acquisition Costs	—			—			—			—			196.0			—			—
Other Expenses	39.8			44.4			127.2			135.9			180.0			207.9			211.2
Total	651.0			643.3			1,953.9			1,924.6			3,520.3			2,611.1			2,609.8

Operating Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses, as reported	$	25.6		$	30.8		$	66.7		$	93.1		$	(829.2	)	$	118.6		$	124.0

Interest Adjusted Loss Ratios, as reported:
Individual Disability	82.5		%	84.9		%	82.7		%	84.6		%	108.0		%	85.0		%	81.6		%
Long-term Care	91.3		%	86.0		%	90.1		%	84.4		%	179.3		%	80.8		%	76.5		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	11.6		%	12.8		%	12.4		%	13.0		%	12.9		%	14.3		%	14.1		%
Before-tax Operating Income (Loss) Ratio, as reported	7.5		%	8.9		%	6.5		%	8.9		%	(59.4		)%	8.2		%	8.3		%

Premium Persistency:
Individual Disability							92.6		%	92.6		%	92.9		%	93.0		%	93.2		%
Long-term Care							95.7		%	95.7		%	96.0		%	95.8		%	95.1		%

Unum Group Financial Results for Closed Block Segment - Continued



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			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	$	25.6		$	30.8		$	66.7		$	93.1		$	(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	$	25.6		$	30.8		$	66.7		$	93.1		$	123.9		$	118.6		$	124.0

Interest Adjusted Loss Ratios, as adjusted:
Individual Disability	82.5		%	84.9		%	82.7		%	84.6		%	84.7		%	85.0		%	81.6		%
Long-term Care	91.3		%	86.0		%	90.1		%	84.4		%	84.9		%	80.8		%	76.5		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	11.6		%	12.8		%	12.4		%	13.0		%	12.9		%	14.3		%	14.1		%
Before-tax Operating Income Ratio, as adjusted	7.5		%	8.9		%	6.5		%	8.9		%	8.9		%	8.2		%	8.3		%

10.1

Unum Group Financial Results for Corporate Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2012			9/30/2011			9/30/2012			9/30/2011			12/31/2011			12/31/2010			12/31/2009
				As Adjusted						As Adjusted			As Adjusted
Operating Revenue
Net Investment Income	$	6.9		$	13.3		$	23.0		$	44.6		$	56.2		$	94.6		$	66.7
Other Income	0.4			2.2			2.2			2.8			20.6			3.3			4.4
Total	7.3			15.5			25.2			47.4			76.8			97.9			71.1

Expenses
Interest and Debt Expense	33.9			32.2			98.6			99.4			131.8			128.9			106.8
Other Expenses	0.8			4.1			0.5			7.6			23.4			7.9			12.7
Total	34.7			36.3			99.1			107.0			155.2			136.8			119.5

Operating Loss Before Non-operating Retirement-related Loss, Income Tax, and Net Realized Investment Gains and Losses	$	(27.4	)	$	(20.8	)	$	(73.9	)	$	(59.6	)	$	(78.4	)	$	(38.9	)	$	(48.4	)

Unum Group Reserves



	September 30, 2012
	Gross												Total
	Policy				Claim Reserves								Reinsurance		Total
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	7,045.4	$	604.9	31.2	%	$	7,650.3	$	62.0	$	7,588.3
Group Life and Accidental Death & Dismemberment	74.2		0.5		777.0		158.4		3.8		1,009.6		1.7		1,007.9
Individual Disability - Recently Issued	554.4		3.7		1,081.7		122.9		4.9		1,759.0		90.1		1,668.9
Voluntary Benefits	1,202.5		7.9		39.0		48.2		0.3		1,289.7		27.5		1,262.2
Unum US Segment	1,831.1		12.1		8,943.1		934.4		40.2		11,708.6		181.3		11,527.3

Unum UK Segment	26.5		0.2		2,241.9		126.7		9.7		2,395.1		108.1		2,287.0

Colonial Life Segment	1,466.1		9.7		247.8		96.2		1.4		1,810.1		9.8		1,800.3

Individual Disability	1,017.2		6.7		10,414.9		303.1		43.7		11,735.2		1,490.5		10,244.7
Long-term Care	5,135.4		34.0		721.4		78.7		3.3		5,935.5		47.2		5,888.3
Other	5,646.0		37.3		261.5		167.0		1.7		6,074.5		4,763.7		1,310.8
Closed Block Segment	11,798.6		78.0		11,397.8		548.8		48.7		23,745.2		6,301.4		17,443.8

Subtotal, Excluding Unrealized Adjustment	$	15,122.3	100.0	%	$	22,830.6	$	1,706.1	100.0	%	39,659.0		6,600.6		33,058.4

Unrealized Adjustment to Reserves for Unrealized Gain on Securities											6,321.5		353.8		5,967.7

Consolidated											$	45,980.5	$	6,954.4	$	39,026.1

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 September 30, 2012



	9/30/2012						9/30/2012			6/30/2012
Fixed Maturity Securities (Fair Value)						Selected Statistics
Public	$	29,542.2		66.0	%	Duration Weighted Book Yield	6.54		%	6.59		%
Asset-Backed Securities (1)	63.4			0.1		Average Duration (in years)	7.90			7.88
Residential Mortgage-Backed Securities (2)	2,229.4			5.0
Commercial Mortgage-Backed Securities	130.8			0.3
Private Placements	5,103.4			11.4
High Yield	3,092.6			6.9
Government Securities	2,811.4			6.3
Municipal Securities (3)	1,732.6			3.9
Redeemable Preferred Stocks	38.9			0.1
Total	$	44,744.7		100.0	%

	Amortized Cost			Fair Value
Quality Ratings of Fixed Maturity Securities						Schedule BA and Non-Current
Aaa	10.9		%	10.9	%	Total Non-Current Investments	$	59.0		$	55.7
Aa	8.1			8.6		Total Schedule BA Assets	$	460.3		$	455.3
A	30.3			31.5
Baa	42.6			42.0
Below Baa	8.1			7.0
Total	100.0		%	100.0	%

(1) Includes $0.5 million of high yield asset-backed securities.
(2) Includes $41.4 million of high yield mortgage-backed securities.
(3) Includes $16.4 million of high yield municipal securities.

Unum Group Investment Fact Sheet at September 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	$	2,653.6	$	308.7	$	186.9	$	16.2	$	2,466.7	$	324.9
Capital Goods	3,843.9		561.9		135.1		7.5		3,708.8		569.4
Communications	3,080.9		548.2		106.6		8.6		2,974.3		556.8
Consumer Cyclical	1,278.1		177.0		85.5		6.5		1,192.6		183.5
Consumer Non-Cyclical	5,854.2		1,039.6		68.8		2.7		5,785.4		1,042.3
Energy (Oil & Gas)	3,916.0		765.4		44.5		1.4		3,871.5		766.8
Financial Institutions	3,644.1		378.6		208.1		17.2		3,436.0		395.8
Mortgage/Asset-Backed	2,423.6		318.3		8.3		0.5		2,415.3		318.8
Sovereigns	1,435.0		225.4		—		—		1,435.0		225.4
Technology	1,017.3		151.3		28.2		0.1		989.1		151.4
Transportation	1,396.3		272.4		—		—		1,396.3		272.4
U.S. Government Agencies and Municipalities	3,109.0		653.8		50.5		8.0		3,058.5		661.8
Utilities	11,053.8		1,880.9		269.5		22.3		10,784.3		1,903.2
Redeemable Preferred Stocks	38.9		5.9		—		—		38.9		5.9
Total	$	44,744.7	$	7,287.4	$	1,192.0	$	91.0	$	43,552.7	$	7,378.4

Fixed Maturity Securities - Financial Institutions Classification
Associations	$	13.9	$	1.9	$	—	$	—	$	13.9	$	1.9
Banking	2,192.1		185.7		208.1		17.2		1,984.0		202.9
Finance Captive	250.9		25.0		—		—		250.9		25.0
Insurance	795.9		119.1		—		—		795.9		119.1
Other Financial Institutions	45.8		4.2		—		—		45.8		4.2
Real Estate Management Services	345.5		42.7		—		—		345.5		42.7
Total	$	3,644.1	$	378.6	$	208.1	$	17.2	$	3,436.0	$	395.8

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			$	70.6	$	0.7			$	86.7	$	4.1
91 through 180 days			41.2		0.4				68.9		3.9
181 through 270 days			46.8		0.9				36.9		5.4
271 days to 1 year			—		—				52.1		3.9
Greater than 1 year			451.7		36.0				337.1		35.7
Total			$	610.3	$	38.0			$	581.7	$	53.0

13.1

Unum Group Investment Fact Sheet at September 30, 2012



Asset and Mortgage-Backed Securities Portfolio
	Amortized Cost		Fair Value				% of Total Fixed Maturity Securities		Average Rating
Asset-Backed Securities
Credit Cards	$	62.3	$	62.9	2.6	%	0.1	%	Aaa
Rate Reduction Bonds	—		—		—		—		—
Home Equity	0.9		0.5		—		—		Caa2
Collateralized Debt Obligations	—		—		—		—		—
Total	63.2		63.4		2.6		0.1		Aaa

Residential Mortgage-Backed Securities
Agency CMOs	1,774.7		2,063.2		85.1		4.6		Aaa
Agency Pass-throughs	99.1		109.1		4.5		0.3		Aaa
Non-agency CMOs - Prime	55.3		57.1		2.4		0.1		Ba1
Alt-A	—		—		—		—		—
Subprime	—		—		—		—		—
Collateralized Debt Obligations	—		—		—		—		—
Total	1,929.1		2,229.4		92.0		5.0		Aaa

Commercial Mortgage-Backed Securities
Agency CMBS	113.0		130.8		5.4		0.3		A3

Total	$	2,105.3	$	2,423.6	100.0	%	5.4	%	Aa1

13.2

Unum Group Statutory Capital and Surplus



	September 30, 2012						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	$	626.1	$	83.9	$	710.0	$	734.0

Unum Life of America	1,580.3		190.1		1,770.4		1,748.3

Paul Revere Life (1)	411.0		39.0		450.0		448.2

Colonial Life & Accident	541.1		30.3		571.4		559.1

Provident Life and Casualty	153.0		8.4		161.4		150.2

First Unum Life	265.8		14.7		280.5		280.4

Paul Revere Variable (1)	38.1		0.6		38.7		37.5

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

Special Purpose Reinsurance Vehicles

Tailwind Reinsurance Company	$	58.9	$	0.1	$	59.0	$	67.4

Northwind Reinsurance Company	1,167.6		4.1		1,171.7		1,162.9

UnumProvident International Ltd.	558.7		—		558.7		533.7

Amounts shown are preliminary estimates and may change prior to the regulatory filing of each subsidiary's financial information.

Unum Group Statutory Operating Results



	Nine Months Ended September 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	$	116.3		$	125.5		$	(1.0	)	$	(3.4	)	$	115.3		$	122.1
Unum Life of America	158.7			153.3			(14.4		)	(21.4		)	144.3			131.9
Paul Revere Life	63.5			52.0			(1.0		)	7.4			62.5			59.4
Colonial Life & Accident	100.6			101.2			0.1			(1.9		)	100.7			99.3
Provident Life and Casualty	12.3			13.7			—			(0.6		)	12.3			13.1
First Unum Life	0.1			33.6			—			(0.6		)	0.1			33.0
Paul Revere Variable	1.7			1.9			0.1			—			1.8			1.9
Total, as reported	453.2			481.2			(16.2		)	(20.5		)	437.0			460.7
Intercompany Dividends	(18.3		)	(14.8		)	—			—			(18.3		)	(14.8		)
Total, as adjusted	$	434.9		$	466.4		$	(16.2	)	$	(20.5	)	$	418.7		$	445.9

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	6.8		$	3.8		$	—		$	—		$	6.8		$	3.8
Northwind Reinsurance Company	49.1			59.5			0.5			(0.4		)	49.6			59.1
UnumProvident International Ltd.	(30.5		)	(21.2		)	4.5			9.5			(26.0		)	(11.7		)
Total	$	25.4		$	42.1		$	5.0		$	9.1		$	30.4		$	51.2

	Three Months Ended September 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	$	36.4		$	37.1		$	(1.5	)	$	(0.5	)	$	34.9		$	36.6
Unum Life of America	58.3			38.0			(6.0		)	(2.6		)	52.3			35.4
Paul Revere Life	21.2			16.9			0.1			(0.8		)	21.3			16.1
Colonial Life & Accident	32.8			33.3			—			(0.1		)	32.8			33.2
Provident Life and Casualty	4.3			4.3			—			—			4.3			4.3
First Unum Life	(8.4		)	13.5			0.1			(1.4		)	(8.3		)	12.1
Paul Revere Variable	0.6			0.6			—			—			0.6			0.6
Total, as reported	145.2			143.7			(7.3		)	(5.4		)	137.9			138.3
Intercompany Dividends	(5.6		)	(4.9		)	—			—			(5.6		)	(4.9		)
Total, as adjusted	$	139.6		$	138.8		$	(7.3	)	$	(5.4	)	$	132.3		$	133.4

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	0.2		$	(1.2	)	$	—		$	—		$	0.2		$	(1.2	)
Northwind Reinsurance Company	38.6			7.8			(0.1		)	(0.2		)	38.5			7.6
UnumProvident International Ltd.	(18.5		)	(13.0		)	3.8			4.8			(14.7		)	(8.2		)
Total	$	20.3		$	(6.4	)	$	3.7		$	4.6		$	24.0		$	(1.8	)

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.

Amounts shown are preliminary estimates and may change prior to the regulatory filing of each subsidiary's financial information.

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	$	5,989.8		$	6,080.0		$	6,168.5
Reserves Ceded September 1 for Prior Year Incurrals	(3.6		)	—			—
Paid on Prior Year Claims	(315.1		)	(316.4		)	(304.0		)
Interest Earned on Reserves	89.5			98.9			103.1
Incurred on Prior Year Claims	(77.6		)	(49.4		)	(75.1		)
Reserve Balance September 30	$	5,683.0		$	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

Amounts shown are preliminary estimates and may change prior to the regulatory filing of each subsidiary's financial information.

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

In August 2012, we issued $250.0 million of unsecured senior notes in a public offering. These notes, due in 2042, bear interest at a fixed rate of 5.75% and are payable semi-annually. The notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt. We also made principal payments of $38.1 million and $7.5 million on our senior secured non-recourse floating rate notes issued by Northwind Holdings, LLC (Northwind) and Tailwind Holdings, LLC (Tailwind), respectively, during the nine months ended September 30, 2012. At September 30, 2012, short-term debt consisted of $458.3 million of securities lending transactions.

Share Repurchase Program

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. For the three and nine month periods ended September 30, 2012, we repurchased 5.1 million and 18.6 million shares on the open market at a cost of $100.2 million and $400.5 million, respectively, including commissions of $0.1 million and $0.4 million, respectively. The dollar value of shares remaining under the $750.0 million repurchase program was approximately $650.0 million at September 30, 2012.

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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