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

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - Unum Group	unm09302017exhibit991.htm
8-K - 8-K - Unum Group	unm093020178-kcover.htm

Unum Group

Statistical Supplement Third Quarter 2017

TABLE OF CONTENTS

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

Interim Results are Unaudited



		Page
	Financial Highlights	1
	Capital Metrics	2
	Ratings	3
	Consolidated Statements of Income	4
	Sales Data by Segment	5
	Consolidated Balance Sheets	6
	Financial Results by Segment	7
	Quarterly Historical Financial Results by Segment	8
	Financial Results and Selected Statistics by Segment
	Unum US	9
	Unum UK	10
	Colonial Life	11
	Closed Block	12
	Corporate	13
	Reserves	14
	Investments	15
	Appendix to Statistical Supplement	16

See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.1 for a reconciliation of our non-GAAP financial measures.

N.M. = not a meaningful percentage

Unum Group Financial Highlights



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Consolidated U.S. GAAP Results¹

Premium Income	$	2,153.6		$	2,089.4		$	6,438.7		$	6,258.5		$	8,357.7		$	8,082.4

Operating Revenue	$	2,809.3		$	2,752.3		$	8,418.7		$	8,254.2		$	11,022.3		$	10,775.1
Net Realized Investment Gain (Loss)	9.8			11.0			28.9			(4.2		)	24.2			(43.8		)

Revenue	$	2,819.1		$	2,763.3		$	8,447.6		$	8,250.0		$	11,046.5		$	10,731.3

Net Income	$	252.3		$	236.0		$	727.3		$	683.4		$	931.4		$	867.1
Net Income Per Common Share:
Basic	$	1.12		$	1.01		$	3.20		$	2.89		$	3.96		$	3.51
Assuming Dilution	$	1.12		$	1.01		$	3.19		$	2.88		$	3.95		$	3.50

Assets							$	63,805.7		$	63,905.1		$	61,941.5		$	60,563.6
Stockholders' Equity							$	9,448.6		$	9,361.2		$	8,968.0		$	8,663.9

Operating Return on Equity²
Unum US	16.6		%	15.0		%	16.1		%	14.6		%	15.0		%	13.3		%
Unum UK	14.1		%	20.7		%	15.0		%	19.5		%	18.6		%	18.0		%
Colonial Life	17.1		%	17.3		%	17.2		%	17.5		%	17.4		%	16.6		%
Core Operating Segments	16.5		%	16.0		%	16.2		%	15.7		%	15.9		%	14.5		%
Consolidated	11.5		%	11.2		%	11.5		%	11.2		%	11.2		%	11.2		%



Traditional U.S. Life Insurance Companies' Statutory Results³
Net Gain from Operations, After Tax	$	187.2	$	211.5		$	592.5	$	624.0		$	884.6		$	689.2
Net Realized Investment Gain (Loss), After Tax	3.1		(7.7		)	2.5		(21.4		)	(29.5		)	(35.5		)

Net Income	$	190.3	$	203.8		$	595.0	$	602.6		$	855.1		$	653.7

Capital and Surplus						$	3,683.6	$	3,475.7		$	3,626.9		$	3,470.3

Weighted Average Risk-based Capital Ratio						~ 410%		~ 395%			~ 400%			~ 400%

¹Generally Accepted Accounting Principles

²We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in our Corporate segment. Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting. See page 13.

³ Our traditional U.S. life insurance companies are Provident Life and Accident Insurance Company, Unum Life Insurance Company of America, The Paul Revere Life Insurance Company, Colonial Life & Accident Insurance Company, Provident Life and Casualty Insurance Company, First Unum Life Insurance Company, Unum Insurance Company, and Starmount Life Insurance Company.

Unum Group Capital Metrics



	9/30/2017						9/30/2016						12/31/2016						12/31/2015
	(in millions)			per share			(in millions)			per share			(in millions)			per share			(in millions)			per share
Total Stockholders' Equity (Book Value)	$	9,448.6		$	42.11		$	9,361.2		$	40.33		$	8,968.0		$	39.02		$	8,663.9		$	35.96
Excluding:
Net Unrealized Gain on Securities	557.4			2.48			803.2			3.47			440.6			1.92			204.3			0.84
Net Gain on Cash Flow Hedges	290.7			1.30			335.2			1.44			327.5			1.42			378.0			1.57
Subtotal	8,600.5			38.33			8,222.8			35.42			8,199.9			35.68			8,081.6			33.55
Excluding:
Foreign Currency Translation Adjustment	(265.3		)	(1.18		)	(305.2		)	(1.32		)	(354.0		)	(1.54		)	(173.6		)	(0.72		)
Subtotal	8,865.8			39.51			8,528.0			36.74			8,553.9			37.22			8,255.2			34.27
Excluding:
Unrecognized Pension and Postretirement Benefit Costs	(458.5		)	(2.05		)	(382.5		)	(1.65		)	(465.1		)	(2.02		)	(392.6		)	(1.63		)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)	$	9,324.3		$	41.56		$	8,910.5		$	38.39		$	9,019.0		$	39.24		$	8,647.8		$	35.90

Dividends Paid	$	144.1		$	0.63		$	136.2		$	0.57		$	182.6		$	0.77		$	174.2		$	0.70



	Three Months Ended				Nine Months Ended						Year Ended
	9/30/2017		9/30/2016		9/30/2017			9/30/2016			12/31/2016			12/31/2015
Shares Repurchased (millions)	2.0		2.9		6.3			9.4			11.9			12.3
Cost of Shares Repurchased (millions)⁽¹⁾	$	100.2	$	100.2	$	300.3		$	300.3		$	403.3		$	426.7
Price (UNM closing price on last trading day of period)					$	51.13		$	35.31		$	43.93		$	33.29

Leverage Ratio					26.2		%	27.2		%	27.2		%	25.5		%

Holding Company Cash and Marketable Securities⁽²⁾					$	771		$	598		$	594		$	475

⁽¹⁾Includes commissions of $0.1 million for the three month period ended September 30, 2017 and 2016, $0.2 million for the nine month period ended September 30, 2017 and 2016, and $0.2 million and $0.3 million for the years ended December 31, 2016 and 2015, respectively.

⁽²⁾Excludes amounts committed for subsidiary contributions.

Unum Group Ratings



	AM Best	Fitch	Moody's	S&P
Outlook	Stable	Stable	Stable	Stable

Issuer Credit Ratings	bbb	BBB	Baa2	BBB

Financial Strength Ratings
Provident Life and Accident Insurance Company	A	A	A2	A
Unum Life Insurance Company of America	A	A	A2	A
Colonial Life & Accident Insurance Company	A	A	A2	A
The Paul Revere Life Insurance Company	A	A	A2	A
Starmount Life Insurance Company	A-	NR	NR	NR
Unum Insurance Company	A-	A	A2	NR
Unum Limited	NR	NR	NR	A-

NR = not rated

Unum Group Consolidated Statements of Income



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Revenue
Premium Income	$	2,153.6		$	2,089.4		$	6,438.7		$	6,258.5		$	8,357.7		$	8,082.4
Net Investment Income	609.0			611.4			1,831.9			1,841.1			2,459.0			2,481.2
Net Realized Investment Gain (Loss)	9.8			11.0			28.9			(4.2		)	24.2			(43.8		)
Other Income	46.7			51.5			148.1			154.6			205.6			211.5
Total Revenue	2,819.1			2,763.3			8,447.6			8,250.0			11,046.5			10,731.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,765.6			1,742.6			5,266.6			5,205.9			6,941.8			6,782.8
Commissions	262.4			256.8			793.9			771.7			1,026.7			996.3
Interest and Debt Expense - Non-recourse Debt	1.7			1.7			5.1			5.1			6.9			6.6
Interest and Debt Expense - All Other Debt	38.4			43.5			114.7			121.1			159.1			146.2
Deferral of Acquisition Costs	(154.8		)	(147.8		)	(470.1		)	(447.0		)	(592.4		)	(569.7		)
Amortization of Deferred Acquisition Costs	123.7			118.8			403.5			377.2			493.0			482.3
Other Expenses	415.3			415.6			1,275.2			1,239.5			1,663.7			1,648.5
Total Benefits and Expenses	2,452.3			2,431.2			7,388.9			7,273.5			9,698.8			9,493.0

Income Before Income Tax	366.8			332.1			1,058.7			976.5			1,347.7			1,238.3
Income Tax Expense	114.5			96.1			331.4			293.1			416.3			371.2

Net Income	$	252.3		$	236.0		$	727.3		$	683.4		$	931.4		$	867.1

Average Weighted Shares Outstanding
Basic	225.3			233.8			227.4			236.7			235.4			247.0
Assuming Dilution	226.0			234.2			228.2			237.1			236.0			247.9

Actual Number of Shares Outstanding							224.4			232.1			229.8			240.9

Unum Group Sales Data for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017		9/30/2016		% Change		9/30/2017		9/30/2016		% Change		12/31/2016		12/31/2015
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability	$	31.1	$	24.3	28.0	%	$	114.6	$	110.1	4.1	%	$	217.8	$	239.7
Group Short-term Disability	20.7		11.7		76.9		65.0		52.8		23.1		114.6		119.7
Group Life and AD&D	35.1		31.1		12.9		131.8		127.2		3.6		270.1		250.1
Subtotal	86.9		67.1		29.5		311.4		290.1		7.3		602.5		609.5
Supplemental and Voluntary
Individual Disability	20.4		16.4		24.4		50.2		47.7		5.2		65.1		67.5
Voluntary Benefits	44.8		45.6		(1.8	)	241.7		216.3		11.7		261.7		262.6
Dental and Vision	9.7		4.5		115.6		30.0		4.5		N.M.		14.5		—
Subtotal	74.9		66.5		12.6		321.9		268.5		19.9		341.3		330.1
Total Sales	$	161.8	$	133.6	21.1		$	633.3	$	558.6	13.4		$	943.8	$	939.6

Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees)	$	65.5	$	52.8	24.1	%	$	212.1	$	196.4	8.0	%	$	378.1	$	405.4
Large Case Market	21.4		14.3		49.7		99.3		93.7		6.0		224.4		204.1
Subtotal	86.9		67.1		29.5		311.4		290.1		7.3		602.5		609.5
Supplemental and Voluntary	74.9		66.5		12.6		321.9		268.5		19.9		341.3		330.1
Total Sales	$	161.8	$	133.6	21.1		$	633.3	$	558.6	13.4		$	943.8	$	939.6

Unum Group Sales Data for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
(in millions of dollars)	9/30/2017		9/30/2016		% Change		9/30/2017		9/30/2016		% Change		12/31/2016		12/31/2015
Sales by Product
Group Long-term Disability	$	6.5	$	11.6	(44.0	)%	$	31.5	$	36.4	(13.5	)%	$	50.2	$	53.4
Group Life	7.8		6.1		27.9		17.7		16.2		9.3		23.8		25.7
Supplemental	2.2		1.7		29.4		12.2		8.2		48.8		10.5		5.0
Total Sales	$	16.5	$	19.4	(14.9	)	$	61.4	$	60.8	1.0		$	84.5	$	84.1

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	$	6.1	$	10.9	(44.0	)%	$	21.6	$	30.6	(29.4	)%	$	42.0	$	44.3
Large Case Market	8.2		6.8		20.6		27.6		22.0		25.5		32.0		34.8
Subtotal	14.3		17.7		(19.2	)	49.2		52.6		(6.5	)	74.0		79.1
Supplemental	2.2		1.7		29.4		12.2		8.2		48.8		10.5		5.0
Total Sales	$	16.5	$	19.4	(14.9	)	$	61.4	$	60.8	1.0		$	84.5	$	84.1

(in millions of pounds)
Sales by Product
Group Long-term Disability	£	5.0	£	8.8	(43.2	)%	£	24.9	£	26.1	(4.6	)%	£	37.2	£	35.0
Group Life	6.1		4.7		29.8		13.9		11.7		18.8		17.8		16.8
Supplemental	1.6		1.3		23.1		9.6		5.8		65.5		7.7		3.3
Total Sales	£	12.7	£	14.8	(14.2	)	£	48.4	£	43.6	11.0		£	62.7	£	55.1

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	£	4.8	£	8.4	(42.9	)%	£	17.0	£	22.1	(23.1	)%	£	31.2	£	29.0
Large Case Market	6.3		5.1		23.5		21.8		15.7		38.9		23.8		22.8
Subtotal	11.1		13.5		(17.8	)	38.8		37.8		2.6		55.0		51.8
Supplemental	1.6		1.3		23.1		9.6		5.8		65.5		7.7		3.3
Total Sales	£	12.7	£	14.8	(14.2	)	£	48.4	£	43.6	11.0		£	62.7	£	55.1

5. 1

Unum Group Sales Data for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017		9/30/2016		% Change		9/30/2017		9/30/2016		% Change		12/31/2016		12/31/2015
Sales by Product
Accident, Sickness, and Disability	$	66.5	$	67.0	(0.7	)%	$	201.6	$	195.4	3.2	%	$	310.6	$	276.1
Life	22.6		20.9		8.1		68.4		59.6		14.8		94.0		85.6
Cancer and Critical Illness	17.8		16.3		9.2		49.9		47.6		4.8		79.0		76.8
Total Sales	$	106.9	$	104.2	2.6		$	319.9	$	302.6	5.7		$	483.6	$	438.5

Sales by Market Sector
Commercial
Core Market (< 1,000 employees)	$	69.7	$	67.7	3.0	%	$	220.5	$	201.0	9.7	%	$	309.0	$	290.8
Large Case Market	7.0		10.6		(34.0	)	26.7		32.9		(18.8	)	59.8		54.2
Subtotal	76.7		78.3		(2.0	)	247.2		233.9		5.7		368.8		345.0
Public Sector	30.2		25.9		16.6		72.7		68.7		5.8		114.8		93.5
Total Sales	$	106.9	$	104.2	2.6		$	319.9	$	302.6	5.7		$	483.6	$	438.5

5. 2

Unum Group Consolidated Balance Sheets



	September 30			December 31
	2017			2016
Assets
Investments
Fixed Maturity Securities	$	45,422.6		$	44,217.3
Mortgage Loans	2,145.3			2,038.9
Policy Loans	3,567.5			3,463.2
Other Long-term Investments	654.5			631.5
Short-term Investments	1,046.5			780.0
Total Investments	52,836.4			51,130.9

Other Assets
Cash and Bank Deposits	70.1			100.4
Accounts and Premiums Receivable	1,697.7			1,610.8
Reinsurance Recoverable	4,893.7			4,858.9
Accrued Investment Income	692.5			693.3
Deferred Acquisition Costs	2,155.3			2,094.2
Goodwill	338.2			335.1
Property and Equipment	489.9			500.6
Other Assets	631.9			617.3
Total Assets	$	63,805.7		$	61,941.5

Liabilities
Policy and Contract Benefits	$	1,539.0		$	1,507.9
Reserves for Future Policy and Contract Benefits	45,456.9			44,245.9
Unearned Premiums	430.1			363.7
Other Policyholders’ Funds	1,606.9			1,623.8
Income Tax Payable	40.7			20.6
Deferred Income Tax	231.8			130.3
Short-term Debt	199.9			—
Long-term Debt - Non-recourse	210.8			255.0
Long-term Debt - All Other	2,543.3			2,744.4
Payables for Collateral on Investments	398.3			406.0
Other Liabilities	1,699.4			1,675.9
Total Liabilities	54,357.1			52,973.5

Stockholders’ Equity
Common Stock	30.4			30.4
Additional Paid-in Capital	2,295.2			2,272.8
Accumulated Other Comprehensive Income (Loss)	124.3			(51.0		)
Retained Earnings	9,327.2			8,744.0
Treasury Stock	(2,328.5		)	(2,028.2		)
Total Stockholders’ Equity	9,448.6			8,968.0
Total Liabilities and Stockholders’ Equity	$	63,805.7		$	61,941.5

Unum Group Deferred Acquisition Costs by Segment



	Unum US			Unum UK			Colonial Life			Consolidated
Balances at December 31, 2015	$	1,136.4		$	27.1		$	845.0		$	2,008.5
Capitalization	314.1			8.2			270.1			592.4
Amortization	(275.2		)	(9.7		)	(208.1		)	(493.0		)
Adjustment Related to Unrealized Investment Gains and Losses	1.2			—			(10.7		)	(9.5		)
Foreign Currency	—			(4.2		)	—			(4.2		)
Balances at December 31, 2016	1,176.5			21.4			896.3			2,094.2
Capitalization	244.0			5.4			220.7			470.1
Amortization	(228.3		)	(6.8		)	(168.4		)	(403.5		)
Adjustment Related to Unrealized Investment Gains and Losses	(0.5		)	—			(6.8		)	(7.3		)
Foreign Currency	—			1.8			—			1.8
Balances at September 30, 2017	$	1,191.7		$	21.8		$	941.8		$	2,155.3

6. 1

Unum Group Balance Sheets by Segment - September 30, 2017



	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	$	8,726.5	$	2,338.0	$	4,643.8	$	15,708.3	$	3,107.9	$	2,947.2	$	28,756.8		$	2,316.2		$	52,836.4
Deferred Acquisition Costs	95.7		77.1		1,018.9		1,191.7		21.8		941.8		—			—			2,155.3
Goodwill	—		—		271.1		271.1		39.4		27.7		—			—			338.2
All Other	387.9		142.7		367.5		898.1		253.8		182.7		5,960.2			1,181.0			8,475.8
Total Assets	$	9,210.1	$	2,557.8	$	6,301.3	$	18,069.2	$	3,422.9	$	4,099.4	$	34,717.0		$	3,497.2		$	63,805.7

Liabilities
Reserves and Policyholder Benefits	$	7,463.4	$	1,720.2	$	4,003.9	$	13,187.5	$	2,642.6	$	2,433.4	$	30,769.4		$	—		$	49,032.9
Debt	—		—		—		—		—		—		210.8			2,743.2			2,954.0
All Other	250.1		43.6		448.5		742.2		93.0		306.2		(24.1		)	1,252.9			2,370.2
Total Liabilities	7,713.5		1,763.8		4,452.4		13,929.7		2,735.6		2,739.6		30,956.1			3,996.1			54,357.1

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,475.1		767.4		1,718.5		3,961.0		630.6		1,256.3		3,298.7			(546.1		)	8,600.5
Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges	21.5		26.6		130.4		178.5		56.7		103.5		462.2			47.2			848.1
Total Allocated Stockholders' Equity	1,496.6		794.0		1,848.9		4,139.5		687.3		1,359.8		3,760.9			(498.9		)	9,448.6

Total Liabilities and Allocated Stockholders' Equity	$	9,210.1	$	2,557.8	$	6,301.3	$	18,069.2	$	3,422.9	$	4,099.4	$	34,717.0		$	3,497.2		$	63,805.7

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 our target capital levels for regulatory and rating agency purposes. We modify this formula periodically to recognize changes in the views of capital requirements.

6. 2

Unum Group Balance Sheets by Segment - December 31, 2016



	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	$	8,763.7	$	2,327.1	$	4,488.9	$	15,579.7	$	2,856.9	$	2,787.4	$	27,894.5		$	2,012.4		$	51,130.9
Deferred Acquisition Costs	89.8		73.4		1,013.3		1,176.5		21.4		896.3		—			—			2,094.2
Goodwill	—		—		271.1		271.1		36.3		27.7		—			—			335.1
All Other	445.4		144.0		419.9		1,009.3		186.8		211.8		5,839.8			1,133.6			8,381.3
Total Assets	$	9,298.9	$	2,544.5	$	6,193.2	$	18,036.6	$	3,101.4	$	3,923.2	$	33,734.3		$	3,146.0		$	61,941.5

Liabilities
Reserves and Policyholder Benefits	$	7,495.6	$	1,690.4	$	3,872.2	$	13,058.2	$	2,365.4	$	2,341.7	$	29,976.0		$	—		$	47,741.3
Debt	—		—		—		—		—		—		255.0			2,744.4			2,999.4
All Other	272.7		58.1		429.5		760.3		72.0		270.8		(105.5		)	1,235.2			2,232.8
Total Liabilities	7,768.3		1,748.5		4,301.7		13,818.5		2,437.4		2,612.5		30,125.5			3,979.6			52,973.5

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,511.1		766.9		1,790.2		4,068.2		571.3		1,227.0		3,173.9			(840.5		)	8,199.9
Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges	19.5		29.1		101.3		149.9		92.7		83.7		434.9			6.9			768.1
Total Allocated Stockholders' Equity	1,530.6		796.0		1,891.5		4,218.1		664.0		1,310.7		3,608.8			(833.6		)	8,968.0

Total Liabilities and Allocated Stockholders' Equity	$	9,298.9	$	2,544.5	$	6,193.2	$	18,036.6	$	3,101.4	$	3,923.2	$	33,734.3		$	3,146.0		$	61,941.5

6. 3

Unum Group Financial Results by Segment

We measure and analyze our segment performance on the basis of "operating revenue" and "operating income" or "operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items as specified in the following pages. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income. We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in our Corporate segment as a component of "benefits and expenses" and the tax thereon is reported in "income tax" in the following charts. Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting.



	Three Months Ended						Nine Months Ended
	9/30/2017		9/30/2016		% Change		9/30/2017		9/30/2016		% Change
Premium Income
Unum US	$	1,360.9	$	1,315.0	3.5	%	$	4,079.0	$	3,915.7	4.2	%
Unum UK	131.5		127.3		3.3		379.6		407.4		(6.8	)
Colonial Life	378.7		354.1		6.9		1,129.3		1,056.7		6.9
Closed Block	282.5		293.0		(3.6	)	850.8		878.7		(3.2	)
	2,153.6		2,089.4		3.1		6,438.7		6,258.5		2.9
Net Investment Income
Unum US	201.0		207.3		(3.0	)	609.1		622.4		(2.1	)
Unum UK	28.5		28.5		—		88.3		89.3		(1.1	)
Colonial Life	36.0		36.1		(0.3	)	107.8		105.7		2.0
Closed Block	337.2		334.1		0.9		1,012.5		1,008.6		0.4
Corporate	6.3		5.4		16.7		14.2		15.1		(6.0	)
	609.0		611.4		(0.4	)	1,831.9		1,841.1		(0.5	)
Other Income
Unum US	26.5		28.7		(7.7	)	85.3		85.6		(0.4	)
Unum UK	0.6		—		—		0.6		0.2		200.0
Colonial Life	0.3		0.4		(25.0	)	0.8		1.0		(20.0	)
Closed Block	18.9		21.5		(12.1	)	59.9		65.3		(8.3	)
Corporate	0.4		0.9		(55.6	)	1.5		2.5		(40.0	)
	46.7		51.5		(9.3	)	148.1		154.6		(4.2	)
Total Operating Revenue
Unum US	1,588.4		1,551.0		2.4		4,773.4		4,623.7		3.2
Unum UK	160.6		155.8		3.1		468.5		496.9		(5.7	)
Colonial Life	415.0		390.6		6.2		1,237.9		1,163.4		6.4
Closed Block	638.6		648.6		(1.5	)	1,923.2		1,952.6		(1.5	)
Corporate	6.7		6.3		6.3		15.7		17.6		(10.8	)
	$	2,809.3	$	2,752.3	2.1		$	8,418.7	$	8,254.2	2.0

Unum Group Financial Results by Segment - Continued



	Three Months Ended								Nine Months Ended
	9/30/2017			9/30/2016			% Change		9/30/2017			9/30/2016			% Change
Benefits and Expenses
Unum US	$	1,330.0		$	1,320.0		0.8	%	$	4,028.1		$	3,949.6		2.0	%
Unum UK	134.1			127.6			5.1		386.5			398.2			(2.9	)
Colonial Life	333.3			311.6			7.0		992.0			929.1			6.8
Closed Block	612.0			620.0			(1.3	)	1,832.4			1,857.7			(1.4	)
Corporate	42.9			52.0			(17.5	)	149.9			138.9			7.9
	2,452.3			2,431.2			0.9		7,388.9			7,273.5			1.6
Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss), and Loss from Guaranty Fund Assessment
Unum US	258.4			231.0			11.9		745.3			674.1			10.6
Unum UK	26.5			28.2			(6.0	)	82.0			98.7			(16.9	)
Colonial Life	81.7			79.0			3.4		245.9			234.3			5.0
Closed Block	26.6			28.6			(7.0	)	90.8			94.9			(4.3	)
Corporate	(36.2		)	(45.7		)	(20.8	)	(113.6		)	(121.3		)	(6.3	)
	357.0			321.1			11.2		1,050.4			980.7			7.1
Income Tax Expense	110.9			92.4			20.0		327.8			294.8			11.2

Income Before Net Realized Investment Gain (Loss) and Loss from Guaranty Fund Assessment, Net of Tax	246.1			228.7			7.6		722.6			685.9			5.4

Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $3.6; $3.7; $10.8; $(1.7))	6.2			7.3			15.1		18.1			(2.5		)	N.M.
Loss from Guaranty Fund Assessment (net of tax benefit of $-; $-; $7.2; $-)	—			—			—		(13.4		)	—			N.M.

Net Income	$	252.3		$	236.0		6.9		$	727.3		$	683.4		6.4

7. 1

Unum Group Quarterly Historical Financial Results by Segment



	9/30/17		6/30/17		3/31/17		12/31/16		9/30/16		6/30/16		3/31/16		12/31/15		9/30/15
Premium Income
Unum US	$	1,360.9	$	1,357.7	$	1,360.4	$	1,325.2	$	1,315.0	$	1,299.4	$	1,301.3	$	1,251.6	$	1,241.8
Unum UK	131.5		126.8		121.3		121.9		127.3		140.8		139.3		150.4		144.6
Colonial Life	378.7		376.3		374.3		360.4		354.1		351.4		351.2		337.4		333.1
Closed Block	282.5		281.4		286.9		291.7		293.0		290.0		295.7		298.4		301.3
	2,153.6		2,142.2		2,142.9		2,099.2		2,089.4		2,081.6		2,087.5		2,037.8		2,020.8
Net Investment Income
Unum US	201.0		205.6		202.5		206.3		207.3		207.7		207.4		220.3		214.3
Unum UK	28.5		33.2		26.6		28.8		28.5		34.0		26.8		34.8		28.0
Colonial Life	36.0		36.7		35.1		35.8		36.1		35.6		34.0		35.6		35.9
Closed Block	337.2		340.0		335.3		343.6		334.1		341.1		333.4		340.4		327.5
Corporate	6.3		5.0		2.9		3.4		5.4		4.9		4.8		5.3		6.4
	609.0		620.5		602.4		617.9		611.4		623.3		606.4		636.4		612.1
Other Income
Unum US	26.5		30.1		28.7		27.7		28.7		27.9		29.0		28.8		28.1
Unum UK	0.6		—		—		—		—		0.2		—		—		—
Colonial Life	0.3		0.2		0.3		0.2		0.4		0.3		0.3		—		0.1
Closed Block	18.9		20.2		20.8		20.7		21.5		21.4		22.4		21.8		21.5
Corporate	0.4		0.7		0.4		2.4		0.9		1.3		0.3		0.3		1.8
	46.7		51.2		50.2		51.0		51.5		51.1		52.0		50.9		51.5
Total Operating Revenue
Unum US	1,588.4		1,593.4		1,591.6		1,559.2		1,551.0		1,535.0		1,537.7		1,500.7		1,484.2
Unum UK	160.6		160.0		147.9		150.7		155.8		175.0		166.1		185.2		172.6
Colonial Life	415.0		413.2		409.7		396.4		390.6		387.3		385.5		373.0		369.1
Closed Block	638.6		641.6		643.0		656.0		648.6		652.5		651.5		660.6		650.3
Corporate	6.7		5.7		3.3		5.8		6.3		6.2		5.1		5.6		8.2
	$	2,809.3	$	2,813.9	$	2,795.5	$	2,768.1	$	2,752.3	$	2,756.0	$	2,745.9	$	2,725.1	$	2,684.4

Unum Group Quarterly Historical Financial Results by Segment - Continued



	9/30/17			6/30/17			3/31/17			12/31/16			9/30/16			6/30/16			3/31/16			12/31/15			9/30/15
Benefits and Expenses
Unum US	1,330.0			1,345.6			1,352.5			1,319.1			1,320.0			1,307.8			1,321.8			1,286.5			1,265.5
Unum UK	134.1			131.1			121.3			120.8			127.6			138.1			132.5			148.2			139.9
Colonial Life	333.3			331.4			327.3			316.5			311.6			309.4			308.1			295.4			292.8
Closed Block	612.0			609.0			611.4			621.4			620.0			619.9			617.8			632.5			622.6
Corporate	42.9			43.3			63.7			47.5			52.0			45.9			41.0			43.2			38.1
	2,452.3			2,460.4			2,476.2			2,425.3			2,431.2			2,421.1			2,421.2			2,405.8			2,358.9
Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss), and Loss from Guaranty Fund Assessment
Unum US	258.4			247.8			239.1			240.1			231.0			227.2			215.9			214.2			218.7
Unum UK	26.5			28.9			26.6			29.9			28.2			36.9			33.6			37.0			32.7
Colonial Life	81.7			81.8			82.4			79.9			79.0			77.9			77.4			77.6			76.3
Closed Block	26.6			32.6			31.6			34.6			28.6			32.6			33.7			28.1			27.7
Corporate	(36.2		)	(37.6		)	(39.8		)	(41.7		)	(45.7		)	(39.7		)	(35.9		)	(37.6		)	(29.9		)
	357.0			353.5			339.9			342.8			321.1			334.9			324.7			319.3			325.5
Income Tax Expense	110.9			113.1			103.8			113.1			92.4			101.9			100.5			90.7			104.4

Income Before Net Realized Investment Gain (Loss) and Loss from Guaranty Fund Assessment, Net of Tax	246.1			240.4			236.1			229.7			228.7			233.0			224.2			228.6			221.1

Net Realized Investment Gain (Loss)	9.8			8.1			11.0			28.4			11.0			5.3			(20.5		)	(2.7		)	(26.6		)
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)	3.6			3.4			3.8			10.1			3.7			1.5			(6.9		)	(0.2		)	(9.3		)
Loss from Guaranty Fund Assessment	—			—			(20.6		)	—			—			—			—			—			—
Tax Benefit on Loss from Guaranty Fund Assessment	—			—			(7.2		)	—			—			—			—			—			—

Net Income	$	252.3		$	245.1		$	229.9		$	248.0		$	236.0		$	236.8		$	210.6		$	226.1		$	203.8

Net Income Per Common Share - Assuming Dilution	$	1.12		$	1.07		$	1.00		$	1.07		$	1.01		$	1.00		$	0.88		$	0.93		$	0.83

8. 1

Unum Group Financial Results for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income	$	1,360.9		$	1,315.0		$	4,079.0		$	3,915.7		$	5,240.9		$	4,960.0
Net Investment Income	201.0			207.3			609.1			622.4			828.7			865.3
Other Income	26.5			28.7			85.3			85.6			113.3			119.2
Total	1,588.4			1,551.0			4,773.4			4,623.7			6,182.9			5,944.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	920.7			912.1			2,759.8			2,712.7			3,624.3			3,476.7
Commissions	144.1			145.4			442.0			439.8			580.4			562.2
Deferral of Acquisition Costs	(78.2		)	(76.2		)	(244.0		)	(239.8		)	(314.1		)	(307.3		)
Amortization of Deferred Acquisition Costs	65.2			64.3			228.3			214.0			275.2			272.3
Other Expenses	278.2			274.4			842.0			822.9			1,102.9			1,090.6
Total	1,330.0			1,320.0			4,028.1			3,949.6			5,268.7			5,094.5

Operating Income	$	258.4		$	231.0		$	745.3		$	674.1		$	914.2		$	850.0

Operating Ratios (% of Premium Income):
Benefit Ratio	67.7		%	69.4		%	67.7		%	69.3		%	69.2		%	70.1		%
Other Expense Ratio	20.4		%	20.9		%	20.6		%	21.0		%	21.0		%	22.0		%
Operating Income Ratio	19.0		%	17.6		%	18.3		%	17.2		%	17.4		%	17.1		%

Unum Group Financial Results for Unum US Group Disability



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income
Group Long-term Disability	$	435.2		$	428.1		$	1,307.3		$	1,291.6		$	1,726.6		$	1,644.7
Group Short-term Disability	161.1			155.5			477.3			469.2			626.1			607.4
Total Premium Income	596.3			583.6			1,784.6			1,760.8			2,352.7			2,252.1
Net Investment Income	113.7			120.1			347.3			360.7			479.5			496.5
Other Income	23.8			22.8			73.4			68.2			91.1			92.9
Total	733.8			726.5			2,205.3			2,189.7			2,923.3			2,841.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	457.1			458.5			1,366.8			1,404.0			1,863.8			1,834.0
Commissions	45.8			44.2			137.1			134.3			178.2			172.2
Deferral of Acquisition Costs	(12.4		)	(11.6		)	(35.8		)	(35.3		)	(46.4		)	(43.2		)
Amortization of Deferred Acquisition Costs	10.0			9.0			29.9			27.0			35.9			33.7
Other Expenses	143.3			141.0			436.2			429.5			572.1			572.4
Total	643.8			641.1			1,934.2			1,959.5			2,603.6			2,569.1

Operating Income	$	90.0		$	85.4		$	271.1		$	230.2		$	319.7		$	272.4

Operating Ratios (% of Premium Income):
Benefit Ratio	76.7		%	78.6		%	76.6		%	79.7		%	79.2		%	81.4		%
Other Expense Ratio	24.0		%	24.2		%	24.4		%	24.4		%	24.3		%	25.4		%
Operating Income Ratio	15.1		%	14.6		%	15.2		%	13.1		%	13.6		%	12.1		%

Persistency:
Group Long-term Disability							89.5		%	90.5		%	91.0		%	92.1		%
Group Short-term Disability							86.3		%	87.4		%	87.7		%	88.1		%

9. 1

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



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income
Group Life	$	370.0		$	353.4		$	1,101.7		$	1,053.6		$	1,410.0		$	1,347.4
Accidental Death & Dismemberment	37.2			35.3			110.5			104.8			140.3			131.7
Total Premium Income	407.2			388.7			1,212.2			1,158.4			1,550.3			1,479.1
Net Investment Income	27.3			28.1			82.7			85.5			113.4			135.1
Other Income	1.4			1.1			3.6			3.3			4.5			2.1
Total	435.9			417.9			1,298.5			1,247.2			1,668.2			1,616.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	290.6			282.2			864.1			832.5			1,112.6			1,061.6
Commissions	33.3			31.5			98.0			94.8			126.8			121.2
Deferral of Acquisition Costs	(9.5		)	(8.9		)	(27.6		)	(27.4		)	(35.7		)	(33.3		)
Amortization of Deferred Acquisition Costs	7.9			7.3			23.9			22.0			29.2			26.2
Other Expenses	53.5			52.4			163.1			159.6			213.5			215.7
Total	375.8			364.5			1,121.5			1,081.5			1,446.4			1,391.4

Operating Income	$	60.1		$	53.4		$	177.0		$	165.7		$	221.8		$	224.9

Operating Ratios (% of Premium Income):
Benefit Ratio	71.4		%	72.6		%	71.3		%	71.9		%	71.8		%	71.8		%
Other Expense Ratio	13.1		%	13.5		%	13.5		%	13.8		%	13.8		%	14.6		%
Operating Income Ratio	14.8		%	13.7		%	14.6		%	14.3		%	14.3		%	15.2		%

Persistency:
Group Life							87.7		%	90.3		%	90.7		%	89.2		%
Accidental Death & Dismemberment							86.8		%	90.4		%	90.3		%	89.8		%

9. 2

Unum Group Financial Results for Unum US Supplemental and Voluntary



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income
Individual Disability	$	104.4		$	125.6		$	318.1		$	374.4		$	480.3		$	478.9
Voluntary Benefits	210.8			197.1			639.2			602.1			796.5			749.9
Dental and Vision	42.2			20.0			124.9			20.0			61.1			—
Total Premium Income	357.4			342.7			1,082.2			996.5			1,337.9			1,228.8
Net Investment Income	60.0			59.1			179.1			176.2			235.8			233.7
Other Income	1.3			4.8			8.3			14.1			17.7			24.2
Total	418.7			406.6			1,269.6			1,186.8			1,591.4			1,486.7

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	173.0			171.4			528.9			476.2			647.9			581.1
Commissions	65.0			69.7			206.9			210.7			275.4			268.8
Deferral of Acquisition Costs	(56.3		)	(55.7		)	(180.6		)	(177.1		)	(232.0		)	(230.8		)
Amortization of Deferred Acquisition Costs	47.3			48.0			174.5			165.0			210.1			212.4
Other Expenses	81.4			81.0			242.7			233.8			317.3			302.5
Total	310.4			314.4			972.4			908.6			1,218.7			1,134.0

Operating Income	$	108.3		$	92.2		$	297.2		$	278.2		$	372.7		$	352.7

Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability	48.3		%	52.6		%	51.4		%	52.5		%	52.9		%	51.8		%
Voluntary Benefits	44.1		%	46.5		%	43.2		%	44.2		%	44.3		%	44.4		%
Dental and Vision	70.1		%	68.0		%	71.3		%	68.0		%	66.6		%	—		%
Other Expense Ratio	22.8		%	23.6		%	22.4		%	23.5		%	23.7		%	24.6		%
Operating Income Ratio	30.3		%	26.9		%	27.5		%	27.9		%	27.9		%	28.7		%

Persistency:
Individual Disability							91.1		%	91.2		%	91.1		%	90.3		%
Voluntary Benefits							76.8		%	76.8		%	76.9		%	75.9		%
Dental and Vision							84.2		%	84.5		%	84.6		%	—		%

9. 3

Unum Group Financial Results for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income
Group Long-term Disability	$	87.0		$	85.5		$	251.6		$	274.1		$	355.2		$	397.4
Group Life	26.7			24.9			76.9			80.9			105.7			121.5
Supplemental	17.8			16.9			51.1			52.4			68.4			57.3
Total Premium Income	131.5			127.3			379.6			407.4			529.3			576.2
Net Investment Income	28.5			28.5			88.3			89.3			118.1			124.9
Other Income	0.6			—			0.6			0.2			0.2			—
Total	160.6			155.8			468.5			496.9			647.6			701.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	98.4			91.3			280.9			284.8			367.4			394.8
Commissions	9.2			9.2			27.0			27.9			38.9			41.8
Deferral of Acquisition Costs	(1.6		)	(2.1		)	(5.4		)	(6.1		)	(8.2		)	(9.6		)
Amortization of Deferred Acquisition Costs	2.3			2.3			6.8			7.4			9.7			11.3
Other Expenses	25.8			26.9			77.2			84.2			111.2			122.2
Total	134.1			127.6			386.5			398.2			519.0			560.5

Operating Income	$	26.5		$	28.2		$	82.0		$	98.7		$	128.6		$	140.6

Unum Group Financial Results for Unum UK Segment - Continued



	Three Months Ended						Nine Months Ended						Year Ended
(in millions of pounds, except exchange rate)	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income
Group Long-term Disability	£	66.4		£	65.1		£	197.1		£	196.7		£	262.0		£	259.9
Group Life	20.3			19.0			60.2			58.0			78.0			79.5
Supplemental	13.7			12.8			40.1			37.6			50.5			37.5
Total Premium Income	100.4			96.9			297.4			292.3			390.5			376.9
Net Investment Income	21.8			21.7			69.2			64.1			87.3			81.6
Other Income	0.5			—			0.5			0.1			0.1			—
Total	122.7			118.6			367.1			356.5			477.9			458.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	75.2			69.6			220.0			204.5			270.9			258.1
Commissions	6.9			7.0			21.1			20.0			28.9			27.4
Deferral of Acquisition Costs	(1.2		)	(1.6		)	(4.2		)	(4.4		)	(6.1		)	(6.3		)
Amortization of Deferred Acquisition Costs	1.8			1.7			5.3			5.3			7.2			7.4
Other Expenses	19.8			20.4			60.7			60.4			82.2			79.9
Total	102.5			97.1			302.9			285.8			383.1			366.5

Operating Income	£	20.2		£	21.5		£	64.2		£	70.7		£	94.8		£	92.0

Weighted Average Pound/Dollar Exchange Rate	1.312			1.312			1.277			1.396			1.357			1.528

Operating Ratios (% of Premium Income):
Benefit Ratio	74.9		%	71.8		%	74.0		%	70.0		%	69.4		%	68.5		%
Other Expense Ratio	19.7		%	21.1		%	20.4		%	20.7		%	21.0		%	21.2		%
Operating Income Ratio	20.1		%	22.2		%	21.6		%	24.2		%	24.3		%	24.4		%

Persistency:
Group Long-term Disability							87.1		%	88.7		%	89.5		%	89.2		%
Group Life							83.5		%	80.1		%	81.3		%	80.0		%
Supplemental							89.5		%	90.5		%	89.9		%	87.7		%

10. 1

Unum Group Financial Results for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	222.3		$	207.7		$	661.5		$	619.2		$	830.0		$	789.0
Life	74.6			68.0			223.8			203.4			273.8			252.4
Cancer and Critical Illness	81.8			78.4			244.0			234.1			313.3			297.2
Total Premium Income	378.7			354.1			1,129.3			1,056.7			1,417.1			1,338.6
Net Investment Income	36.0			36.1			107.8			105.7			141.5			145.4
Other Income	0.3			0.4			0.8			1.0			1.2			0.1
Total	415.0			390.6			1,237.9			1,163.4			1,559.8			1,484.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	196.1			182.6			579.2			541.2			726.4			683.0
Commissions	86.4			78.7			256.8			233.3			313.6			293.5
Deferral of Acquisition Costs	(75.0		)	(69.5		)	(220.7		)	(201.1		)	(270.1		)	(252.8		)
Amortization of Deferred Acquisition Costs	56.2			52.2			168.4			155.8			208.1			198.7
Other Expenses	69.6			67.6			208.3			199.9			267.6			252.6
Total	333.3			311.6			992.0			929.1			1,245.6			1,175.0

Operating Income	$	81.7		$	79.0		$	245.9		$	234.3		$	314.2		$	309.1

Operating Ratios (% of Premium Income):
Benefit Ratio	51.8		%	51.6		%	51.3		%	51.2		%	51.3		%	51.0		%
Other Expense Ratio	18.4		%	19.1		%	18.4		%	18.9		%	18.9		%	18.9		%
Operating Income Ratio	21.6		%	22.3		%	21.8		%	22.2		%	22.2		%	23.1		%

Persistency:
Accident, Sickness, and Disability							75.4		%	75.2		%	75.6		%	74.8		%
Life							84.5		%	84.8		%	85.0		%	84.9		%
Cancer and Critical Illness							82.6		%	82.6		%	82.9		%	81.2		%

Unum Group Financial Results for Closed Block Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Premium Income
Individual Disability	$	117.9		$	129.9		$	357.7		$	394.0		$	521.9		$	572.4
Long-term Care	162.4			161.4			486.4			482.0			643.9			633.5
All Other	2.2			1.7			6.7			2.7			4.6			1.7
Total Premium Income	282.5			293.0			850.8			878.7			1,170.4			1,207.6
Net Investment Income	337.2			334.1			1,012.5			1,008.6			1,352.2			1,320.0
Other Income	18.9			21.5			59.9			65.3			86.0			89.3
Total	638.6			648.6			1,923.2			1,952.6			2,608.6			2,616.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	550.4			556.6			1,646.7			1,667.2			2,223.7			2,228.3
Commissions	22.7			23.5			68.1			70.7			93.8			98.8
Interest and Debt Expense	1.7			1.7			5.1			5.1			6.9			6.6
Other Expenses	37.2			38.2			112.5			114.7			154.7			164.1
Total	612.0			620.0			1,832.4			1,857.7			2,479.1			2,497.8

Operating Income	$	26.6		$	28.6		$	90.8		$	94.9		$	129.5		$	119.1

Interest Adjusted Loss Ratios:
Individual Disability	82.4		%	81.5		%	82.8		%	83.3		%	83.6		%	82.8		%
Long-term Care	93.3		%	93.8		%	90.5		%	91.8		%	91.1		%	87.6		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	13.2		%	13.0		%	13.2		%	13.1		%	13.2		%	13.6		%
Operating Income Ratio	9.4		%	9.8		%	10.7		%	10.8		%	11.1		%	9.9		%

Persistency:
Individual Disability							89.8		%	90.7		%	90.9		%	90.9		%
Long-term Care							95.5		%	94.8		%	94.8		%	95.7		%

Unum Group Financial Results for Corporate Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2017			9/30/2016			9/30/2017			9/30/2016			12/31/2016			12/31/2015
Operating Revenue
Net Investment Income	$	6.3		$	5.4		$	14.2		$	15.1		$	18.5		$	25.6
Other Income	0.4			0.9			1.5			2.5			4.9			2.9
Total	6.7			6.3			15.7			17.6			23.4			28.5

Interest and Other Expenses*	42.9			52.0			149.9			138.9			186.4			165.2

Operating Loss Including Loss from Guaranty Fund Assessment	(36.2		)	(45.7		)	(134.2		)	(121.3		)	(163.0		)	(136.7		)
Loss from Guaranty Fund Assessment	—			—			20.6			—			—			—
Operating Loss	$	(36.2	)	$	(45.7	)	$	(113.6	)	$	(121.3	)	$	(163.0	)	$	(136.7	)

* We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans, from the results of our Corporate segment. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported in our Corporate segment as a component of "interest and other expenses" in the above chart. Amounts for periods prior to January, 1, 2017 have been adjusted to conform to current year reporting.

Unum Group Reserves



	September 30, 2017
	Gross												Total
	Policy				Claim Reserves								Reinsurance		Total
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	6,063.2	$	625.2	28.8	%	$	6,688.4	$	73.6	$	6,614.8
Group Life and Accidental Death & Dismemberment	63.3		0.3		708.3		197.4		3.9		969.0		5.4		963.6
Individual Disability	536.0		2.9		1,325.5		137.2		6.3		1,998.7		203.3		1,795.4
Voluntary Benefits	1,545.4		8.2		45.2		55.1		0.4		1,645.7		27.4		1,618.3
Dental and Vision	—		—		1.6		9.3		0.1		10.9		0.2		10.7
Unum US Segment	2,144.7		11.4		8,143.8		1,024.2		39.5		11,312.7		309.9		11,002.8

Unum UK Segment	18.4		0.1		1,900.6		103.5		8.6		2,022.5		86.0		1,936.5

Colonial Life Segment	1,955.7		10.4		284.6		128.1		1.9		2,368.4		8.9		2,359.5

Individual Disability	439.9		2.4		9,480.9		226.3		41.8		10,147.1		1,614.8		8,532.3
Long-term Care	8,288.2		44.2		1,457.4		146.8		6.9		9,892.4		40.6		9,851.8
Other	5,895.1		31.5		185.8		114.5		1.3		6,195.4		5,073.9		1,121.5
Closed Block Segment	14,623.2		78.1		11,124.1		487.6		50.0		26,234.9		6,729.3		19,505.6

Subtotal	$	18,742.0	100.0	%	$	21,453.1	$	1,743.4	100.0	%	41,938.5		7,134.1		34,804.4

Adjustment Related to Unrealized Investment Gains and Losses											5,057.4		371.6		4,685.8

Consolidated											$	46,995.9	$	7,505.7	$	39,490.2

The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are primarily due to movements in the U.S. Treasury rates and credit spreads.

Unum Group Reserves



	December 31, 2016
	Gross												Total Reinsurance Ceded
	Policy Reserves				Claim Reserves										Total Net
	Policy Reserves		%		Incurred		IBNR		%		Total				Total Net
Group Disability	$	—	—	%	$	6,201.0	$	608.6	29.3	%	$	6,809.6	$	74.3	$	6,735.3
Group Life and Accidental Death & Dismemberment	65.4		0.3		704.8		192.6		3.9		962.8		4.1		958.7
Individual Disability	544.6		3.0		1,298.5		130.6		6.1		1,973.7		201.0		1,772.7
Voluntary Benefits	1,492.7		8.2		45.5		50.6		0.4		1,588.8		27.7		1,561.1
Dental and Vision	—		—		3.9		8.1		0.1		12.0		0.2		11.8
Unum US Segment	2,102.7		11.5	%	8,253.7		990.5		39.8	%	11,346.9		307.3		11,039.6

Unum UK Segment	18.2		0.1		1,714.2		113.3		7.9		1,845.7		81.8		1,763.9

Colonial Life Segment	1,871.0		10.3		277.8		132.0		1.8		2,280.8		7.9		2,272.9

Individual Disability	513.6		2.8		9,696.4		251.6		42.8		10,461.6		1,601.2		8,860.4
Long-term Care	7,898.4		43.3		1,360.4		136.6		6.4		9,395.4		41.8		9,353.6
Other	5,848.3		32.0		189.8		132.1		1.3		6,170.2		5,030.6		1,139.6
Closed Block Segment	14,260.3		78.1		11,246.6		520.3		50.5		26,027.2		6,673.6		19,353.6

Subtotal	$	18,252.2	100.0	%	$	21,492.3	$	1,756.1	100.0	%	41,500.6		7,070.6		34,430.0

Adjustment Related to Unrealized Investment Gains and Losses											4,253.2		321.3		3,931.9

Consolidated											$	45,753.8	$	7,391.9	$	38,361.9

14. 1

Unum Group Investments



	9/30/2017						9/30/2017			12/31/2016
Fixed Maturity Securities (Fair Value)
Public	$	29,793.3		65.6	%	Selected Statistics
Asset-Backed Securities	83.9			0.2		Earned Book Yield	5.21		%	5.30		%
Residential Mortgage-Backed Securities (1)	1,831.3			4.0		Average Duration (in years)	7.63			7.59
Commercial Mortgage-Backed Securities	128.0			0.3
Private Placements	5,432.9			12.0
High Yield	3,375.3			7.4
Government Securities	2,457.1			5.4
Municipal Securities (2)	2,278.6			5.0
Redeemable Preferred Stocks	42.2			0.1
Total	$	45,422.6		100.0	%

	Amortized Cost			Fair Value
Quality Ratings of Fixed Maturity Securities						Schedule BA and Non-Current
Aaa	8.2		%	8.0	%	Total Non-Current Investments	$	41.8		$	41.9
Aa	7.8			8.2		Total Schedule BA Assets	$	543.4		$	510.3
A	27.6			28.7
Baa	48.2			47.6
Below Baa	8.2			7.5
Total	100.0		%	100.0	%

(1) Includes $11.1 million of high yield mortgage-backed securities.
(2) Includes $1.5 million of high yield taxable municipal securities.

Unum Group Investments at September 30, 2017



Fixed Maturity Securities - By Industry Classification - Unrealized Gain
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	$	2,718.0	$	284.9	$	190.9	$	3.8	$	2,527.1	$	288.7
Capital Goods	4,231.4		512.8		197.1		5.0		4,034.3		517.8
Communications	3,157.9		431.0		191.7		21.3		2,966.2		452.3
Consumer Cyclical	1,414.4		146.3		53.3		1.1		1,361.1		147.4
Consumer Non-Cyclical	6,814.3		769.3		457.9		26.6		6,356.4		795.9
Energy	5,020.4		608.5		332.9		28.5		4,687.5		637.0
Financial Institutions	3,424.3		328.6		126.2		2.0		3,298.1		330.6
Mortgage/Asset-Backed	2,043.2		117.5		368.6		3.6		1,674.6		121.1
Sovereigns	955.9		187.0		12.4		1.1		943.5		188.1
Technology	1,706.0		126.6		59.3		1.0		1,646.7		127.6
Transportation	1,949.1		266.8		116.1		1.6		1,833.0		268.4
U.S. Government Agencies and Municipalities	3,779.8		549.9		286.2		5.5		3,493.6		555.4
Public Utilities	8,207.9		1,258.5		244.8		9.5		7,963.1		1,268.0
Total	$	45,422.6	$	5,587.7	$	2,637.4	$	110.6	$	42,785.2	$	5,698.3

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	$	1,017.9	$	12.4			$	83.2	$	0.7
91 through 180 days	58.8		2.1				22.7		0.3
181 through 270 days	50.7		1.8				50.0		1.2
271 days to 1 year	693.4		24.5				—		—
Greater than 1 year	241.9		11.9				418.8		55.7
Total	$	2,062.7	$	52.7			$	574.7	$	57.9

15. 1

Appendix to Statistical Supplement

2017 Significant Item


•	First quarter of 2017 loss from a guaranty fund assessment of $20.6 million before tax and $13.4 million after tax.

2016 Significant Item

•

In August 2016, we acquired 100 percent of the shares and voting interests in H&J Capital, L.L.C., parent of Starmount Life Insurance Company and AlwaysCare Benefits (which collectively we refer to as Starmount) for a total cash purchase price of $140.3 million, plus contingent cash consideration of $10.0 million. Starmount Life Insurance Company is an independent provider of dental and vision insurance in the U.S. workplace, and AlwaysCare Benefits is a nationally licensed, third-party administrator. Starmount's dental and vision products and new dental and vision products to be marketed by Unum US are reported in our Unum US segment within our supplemental and voluntary product lines. Colonial Life dental and vision products are expected to be introduced in 2018. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue, operating results, or sales during 2016.

2015 Significant Item

•

In September 2015, we acquired 100 percent of the common shares and voting interests in National Dental Plan Limited and associated companies (National Dental) for a total cash purchase price of £35.9 million or $54.3 million. National Dental, a provider of dental insurance in the U.K. workplace, is reported in our Unum UK segment as part of our supplemental product line. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue or results of operations during 2015.



	16

Appendix to Statistical Supplement - Continued

Non-GAAP Financial Measures

We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial measures are better performance measures and better indicators of the revenue and profitability and underlying trends in our business:


•	Consolidated operating revenue, which excludes realized investment gains or losses;


•	After-tax operating income or loss, which excludes realized investment gains or losses and certain other items, as applicable;


•	Operating return on equity, which is calculated using after-tax operating income or loss and excludes from equity the unrealized gain or loss on securities and net gain on cash flow hedges;


•	Leverage ratio, which excludes the unrealized gain or loss on securities and net gain on cash flow hedges, and the non-recourse debt and associated capital of Northwind Holdings, LLC;


•	Book value per common share, which is calculated excluding accumulated other comprehensive income (AOCI); and


•	Premium income from our core operating segments and individual disability product, adjusted for the premium income ceded in the individual disability reinsurance agreement entered into in the fourth quarter of 2016.

Realized investment gains or losses and unrealized gains or losses on securities and net gains on cash flow hedges depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. Leverage ratio and book value per common share excluding certain components of AOCI, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures. We also exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace the comparable GAAP measures in the determination of overall profitability.

Information reconciling the Company’s outlook on after-tax operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax operating income are those described in this Appendix to Statistical Supplement. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio. For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 16.2, other than book value per common share, which is presented on page 2.

16. 1

Reconciliation of Non-GAAP Financial Measures



	Three Months Ended
	September 30		June 30		March 31		December 31		September 30		June 30		March 31			December 31			September 30
	2017						2016									2015
Total Revenue	$	2,819.1	$	2,822.0	$	2,806.5	$	2,796.5	$	2,763.3	$	2,761.3	$	2,725.4		$	2,722.4		$	2,657.8
Excluding:
Net Realized Investment Gain (Loss)	9.8		8.1		11.0		28.4		11.0		5.3		(20.5		)	(2.7		)	(26.6		)
Operating Revenue	$	2,809.3	$	2,813.9	$	2,795.5	$	2,768.1	$	2,752.3	$	2,756.0	$	2,745.9		$	2,725.1		$	2,684.4



							Annualized
	After-Tax			Average			Operating
	Operating			Allocated			Return
	Income (Loss)			Equity⁽¹⁾			On Equity
Three Months Ended September 30, 2017
Unum US	$	167.3		$	4,024.4		16.6	%
Unum UK	21.8			618.4			14.1	%
Colonial Life	53.2			1,247.8			17.1	%
Core Operating Segments	242.3			5,890.6			16.5	%
Closed Block	19.7			3,258.1
Corporate	(15.9		)	(621.5		)
Total	$	246.1		$	8,527.2		11.5	%

Three Months Ended September 30, 2016
Unum US	$	151.0		$	4,034.1		15.0	%
Unum UK	30.8			596.6			20.7	%
Colonial Life	51.4			1,192.1			17.3	%
Core Operating Segments	233.2			5,822.8			16.0	%
Closed Block	19.5			3,091.3
Corporate	(24.0		)	(726.5		)
Total	$	228.7		$	8,187.6		11.2	%

⁽¹⁾Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented on page 16.4.



	16. 2

Reconciliation of Non-GAAP Financial Measures - Continued



							Annualized
	After-Tax			Average			Operating
	Operating			Allocated			Return
	Income (Loss)			Equity⁽¹⁾			On Equity
Nine Months Ended September 30, 2017
Unum US	$	485.4		$	4,014.6		16.1	%
Unum UK	67.5			601.0			15.0	%
Colonial Life	160.3			1,241.7			17.2	%
Core Operating Segments	713.2			5,857.3			16.2	%
Closed Block	63.0			3,236.3
Corporate	(53.6		)	(693.4		)
Total	$	722.6		$	8,400.2		11.5	%

Nine Months Ended September 30, 2016
Unum US	$	440.7		$	4,012.5		14.6	%
Unum UK	91.6			624.9			19.5	%
Colonial Life	152.7			1,164.6			17.5	%
Core Operating Segments	685.0			5,802.0			15.7	%
Closed Block	63.9			3,028.0
Corporate	(63.0		)	(677.8		)
Total	$	685.9		$	8,152.2		11.2	%

⁽¹⁾Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented on page 16.4.

16. 3

Reconciliation of Non-GAAP Financial Measures - Continued



	After-Tax			Average			Operating
	Operating			Allocated			Return
	Income (Loss)			Equity⁽²⁾			On Equity
Year Ended December 31, 2016
Unum US	$	598.3		$	3,992.2		15.0	%
Unum UK	113.8			610.6			18.6	%
Colonial Life	204.9			1,173.9			17.4	%
Core Operating Segments	917.0			5,776.7			15.9	%
Closed Block	87.0			3,055.1
Corporate	(88.4		)	(691.0		)
Total	$	915.6		$	8,140.8		11.2	%

Year Ended December 31, 2015
Unum US	$	557.5		$	4,197.8		13.3	%
Unum UK	116.9			650.6			18.0	%
Colonial Life	201.1			1,209.4			16.6	%
Core Operating Segments	875.5			6,057.8			14.5	%
Closed Block	79.0			2,989.2
Corporate	(61.3		)	(1,085.9		)
Total	$	893.2		$	7,961.1		11.2	%

⁽²⁾Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the stockholders' equity balances presented below.

Average allocated equity is computed as follows:



	9/30/2017		6/30/2017		12/31/2016		9/30/2016		6/30/2016		12/31/2015		12/31/2014
Total Stockholders' Equity, As Reported	$	9,448.6	$	9,316.6	$	8,968.0	$	9,361.2	$	9,157.0	$	8,663.9	$	8,521.9
Excluding:
Net Unrealized Gain on Securities	557.4		558.2		440.6		803.2		661.1		204.3		290.3
Net Gain on Cash Flow Hedges	290.7		304.5		327.5		335.2		343.6		378.0		391.0
Total Stockholders' Equity, as Adjusted	$	8,600.5	$	8,453.9	$	8,199.9	$	8,222.8	$	8,152.3	$	8,081.6	$	7,840.6

	Three Months Ended		Nine Months Ended		Twelve Months Ended		Three Months Ended		Nine Months Ended		Twelve Months Ended
	9/30/2017				12/31/2016		9/30/2016				12/31/2015
Average Stockholders' Equity Excluding Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges	$	8,527.2	$	8,400.2	$	8,140.8	$	8,187.6	$	8,152.2	$	7,961.1

16. 4

Reconciliation of Non-GAAP Financial Measures - Continued



	Three Months Ended September 30								Nine Months Ended September 30
	2017				2016				2017						2016
	(in millions)		per share *		(in millions)		per share *		(in millions)			per share *			(in millions)			per share *
Net Income	$	252.3	$	1.12	$	236.0	$	1.01	$	727.3		$	3.19		$	683.4		$	2.88
Excluding:
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $3.6; $3.7; $10.8; $(1.7))	6.2		0.03		7.3		0.03		18.1			0.08			(2.5		)	(0.02		)
Loss from Guaranty Fund Assessment (net of tax benefit of $-; $-; $7.2; $-)	—		—		—		—		(13.4		)	(0.06		)	—			—
After-tax Operating Income	$	246.1	$	1.09	$	228.7	$	0.98	$	722.6		$	3.17		$	685.9		$	2.90



	Year Ended December 31
	2016				2015
	(in millions)		per share *		(in millions)			per share *
Net Income	$	931.4	$	3.95	$	867.1		$	3.50
Excluding:
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $8.4; $(17.7))	15.8		0.07		(26.1		)	(0.11		)
After-tax Operating Income	$	915.6	$	3.88	$	893.2		$	3.61

* Assuming Dilution



	September 30						December 31
	2017			2016			2016			2015
Debt, As Reported	$	2,954.0		$	3,019.8		$	2,999.4		$	2,801.4
Excluding:
Non-recourse Debt	210.8			269.7			255.0			324.0
Debt, As Adjusted	$	2,743.2		$	2,750.1		$	2,744.4		$	2,477.4

Total Stockholders' Equity, As Reported	$	9,448.6		$	9,361.2		$	8,968.0		$	8,663.9
Excluding:
Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges	848.1			1,138.4			768.1			582.3
Northwind Capital	872.2			859.8			862.6			844.6
Equity, As Adjusted	7,728.3			7,363.0			7,337.3			7,237.0
Debt, As Adjusted	2,743.2			2,750.1			2,744.4			2,477.4
Total Capital, As Adjusted	$	10,471.5		$	10,113.1		$	10,081.7		$	9,714.4

Leverage Ratio	26.2		%	27.2		%	27.2		%	25.5		%

16. 5

Reconciliation of Non-GAAP Financial Measures - Continued



	Three months ended September 30
	2017		2016		% Change
Premium Income
Unum US	$	1,360.9	$	1,315.0	3.5	%
Unum UK	131.5		127.3		3.3
Colonial Life	378.7		354.1		6.9
Premium Income from Core Operating Segments, As Reported	1,871.1		1,796.4		4.2
Excluding:
Premium Income Ceded in Individual Disability Reinsurance Agreement	23.7		—		—
Premium Income from Core Operating Segments, As Adjusted	$	1,894.8	$	1,796.4	5.5	%



	Three months ended September 30
	2017		2016		% Change
Premium Income from Individual Disability, As Reported	$	104.4	$	125.6	(16.9	)%
Excluding:
Premium Income Ceded in Individual Disability Reinsurance Agreement	23.7		—		—
Premium Income from Individual Disability, As Adjusted	$	128.1	$	125.6	2.0	%

16. 6

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