Unum 8K Reports Third Quarter 2013 Results | UNM 4 Nov 13

Unum Group

Statistical Supplement Third Quarter 2013

TABLE OF CONTENTS

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

Interim 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
	9/30/2013			9/30/2012		9/30/2013			9/30/2012		12/31/2012		12/31/2011			12/31/2010
Premium Income	$	1,897.3		$	1,929.4	$	5,734.0		$	5,778.9	$	7,716.1	$	7,514.2		$	7,431.4

Segment Operating Revenue	$	2,567.0		$	2,606.7	$	7,770.1		$	7,825.6	$	10,459.2	$	10,282.9		$	10,168.5
Net Realized Investment Gain (Loss)	(26.1		)	21.3		(2.5		)	31.6		56.2		(4.9		)	24.7

Revenue	$	2,540.9		$	2,628.0	$	7,767.6		$	7,857.2	$	10,515.4	$	10,278.0		$	10,193.2

Net Income	$	205.7		$	230.2	$	636.9		$	660.5	$	894.4	$	284.2		$	878.7

Assets						$	59,585.8		$	62,119.6	$	62,236.1	$	59,555.2		$	56,602.7

Stockholders' Equity						$	8,669.9		$	8,673.3	$	8,612.6	$	8,169.7		$	8,484.9

2013

In June and September 2013, we adopted plan amendments which freeze participation and benefit accruals in our defined benefit pension plans in the U.S. and U.K., respectively, effective December 31, 2013 for the U.S. plans and June 30, 2014 for the U.K. plan. Because the amendments eliminate all future service accruals subsequent to the effective dates of the amendments, we were also required to remeasure the benefit obligations of our pension plans, which decreased our net pension liability approximately $330 million as of September 30, 2013, with a corresponding increase in other comprehensive income, less applicable income tax of approximately $115 million.

2011

Year ended December 31, 2011 results included 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 due to a final settlement with the Internal Revenue Service with respect to our appeal of audit adjustments for the tax years 1996 to 2004.


•	An income tax charge of $18.6 million related to the repatriation of £150.0 million of dividends from our U.K. subsidiaries.

2010

Year ended December 31, 2010 results included a tax charge of $10.2 million to reflect the impact of a tax law change.



	1

Unum Group Per Common Share Information



	Three Months Ended				Nine Months Ended				Year Ended
	9/30/2013		9/30/2012		9/30/2013		9/30/2012		12/31/2012		12/31/2011		12/31/2010
Net Income
Basic	$	0.78	$	0.83	$	2.39	$	2.33	$	3.18	$	0.94	$	2.70
Assuming Dilution	$	0.78	$	0.83	$	2.38	$	2.32	$	3.17	$	0.94	$	2.69

Dividends Paid	$	0.145	$	0.130	$	0.405	$	0.340	$	0.470	$	0.395	$	0.350

Price (UNM closing price on last trading day of period)					$	30.44	$	19.22	$	20.82	$	21.07	$	24.22



	9/30/2013						9/30/2012						12/31/2012						12/31/2011						12/31/2010
	(in millions)			per share			(in millions)			per share			(in millions)			per share			(in millions)			per share			(in millions)			per share
Book Value
Total Stockholders' Equity, As Reported	$	8,669.9		$	33.20		$	8,673.3		$	31.53		$	8,612.6		$	31.87		$	8,169.7		$	27.91		$	8,484.9		$	26.80
Net Unrealized Gain on Securities	427.4			1.64			892.2			3.24			873.5			3.23			614.8			2.11			416.1			1.31
Net Gain on Cash Flow Hedges	397.2			1.52			400.3			1.46			401.6			1.48			408.7			1.39			361.0			1.14
Subtotal	7,845.3			30.04			7,380.8			26.83			7,337.5			27.16			7,146.2			24.41			7,707.8			24.35
Foreign Currency Translation Adjustment	(73.4		)	(0.28		)	(78.6		)	(0.29		)	(72.6		)	(0.26		)	(117.6		)	(0.41		)	(107.1		)	(0.34		)
Subtotal	7,918.7			30.32			7,459.4			27.12			7,410.1			27.42			7,263.8			24.82			7,814.9			24.69
Unrecognized Pension and Postretirement Benefit Costs	(341.6		)	(1.31		)	(423.6		)	(1.54		)	(574.5		)	(2.13		)	(444.1		)	(1.51		)	(318.6		)	(1.00		)
Total Stockholders' Equity, Excluding AOCI	$	8,260.3		$	31.63		$	7,883.0		$	28.66		$	7,984.6		$	29.55		$	7,707.9		$	26.33		$	8,133.5		$	25.69



	1. 1

Unum Group Consolidated Statements of Income



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Revenue
Premium Income	$	1,897.3		$	1,929.4		$	5,734.0		$	5,778.9		$	7,716.1		$	7,514.2		$	7,431.4
Net Investment Income	615.5			619.2			1,862.7			1,872.2			2,515.2			2,519.6			2,495.5
Net Realized Investment Gain (Loss)	(26.1		)	21.3			(2.5		)	31.6			56.2			(4.9		)	24.7
Other Income	54.2			58.1			173.4			174.5			227.9			249.1			241.6
Total Revenue	2,540.9			2,628.0			7,767.6			7,857.2			10,515.4			10,278.0			10,193.2

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,641.6			1,686.9			4,951.9			5,033.0			6,722.2			7,209.5			6,354.1
Commissions	222.6			227.7			681.6			690.8			917.2			879.2			855.4
Interest and Debt Expense - Non-recourse Debt	2.1			2.7			6.5			8.7			11.5			11.5			12.9
Interest and Debt Expense - All Other Debt	35.3			33.9			105.3			98.6			133.9			131.8			128.9
Deferral of Acquisition Costs	(117.8		)	(111.0		)	(349.3		)	(347.6		)	(467.3		)	(442.5		)	(422.5		)
Amortization of Deferred Acquisition Costs	98.6			87.0			323.7			285.6			378.7			365.7			373.3
Impairment of Deferred Acquisition Costs	—			—			—			—			—			196.0			—
Other Expenses	374.4			380.4			1,148.5			1,161.3			1,569.7			1,593.5			1,571.2
Total Benefits and Expenses	2,256.8			2,307.6			6,868.2			6,930.4			9,265.9			9,944.7			8,873.3

Income Before Income Tax	284.1			320.4			899.4			926.8			1,249.5			333.3			1,319.9
Income Tax Expense	78.4			90.2			262.5			266.3			355.1			49.1			441.2

Net Income	$	205.7		$	230.2		$	636.9		$	660.5		$	894.4		$	284.2		$	878.7

Average Weighted Shares Outstanding
Basic	262,945,934			278,354,416			265,932,608			284,012,762			281,355,942			302,399,783			325,839,020
Dilutive Securities:
Options and Other Nonvested Stock Awards	1,314,111			156,623			1,161,089			478,402			400,901			1,171,250			1,382,036
Assuming Dilution	264,260,045			278,511,039			267,093,697			284,491,164			281,756,843			303,571,033			327,221,056

Actual Number of Shares Outstanding							261,139,638			275,085,287			270,205,185			292,715,954			316,573,452



	2

Unum Group Sales Data by Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013		9/30/2012		% Change		9/30/2013		9/30/2012		% Change		12/31/2012		12/31/2011		12/31/2010

Unum US	$	121.8	$	122.8	(0.8	)%	$	450.7	$	479.3	(6.0	)%	$	760.5	$	707.3	$	643.4

Unum UK	£	11.1	£	10.7	3.7	%	£	35.8	£	45.6	(21.5	)%	£	59.5	£	62.7	£	77.2

Colonial Life	$	76.1	$	78.4	(2.9	)%	$	227.8	$	235.3	(3.2	)%	$	361.9	$	365.9	$	358.8



	3

Unum Group Sales Data for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013		9/30/2012		% Change		9/30/2013		9/30/2012		% Change		12/31/2012		12/31/2011		12/31/2010
Sales by Product
Group Disability, Group Life, and AD&D
Group Long-term Disability	$	25.7	$	23.6	8.9	%	$	89.6	$	95.4	(6.1	)%	$	182.2	$	165.0	$	148.2
Group Short-term Disability	12.8		14.1		(9.2	)	47.3		51.1		(7.4	)	97.4		84.9		80.3
Group Life	23.3		24.5		(4.9	)	90.6		102.7		(11.8	)	188.0		185.3		166.9
AD&D	2.2		2.2		—		8.2		10.0		(18.0	)	19.5		17.6		18.1
Subtotal	64.0		64.4		(0.6	)	235.7		259.2		(9.1	)	487.1		452.8		413.5
Supplemental and Voluntary
Individual Disability - Recently Issued	11.2		14.6		(23.3	)	36.6		44.8		(18.3	)	57.0		55.6		42.7
Voluntary Benefits	46.6		43.8		6.4		178.4		175.3		1.8		216.4		198.9		187.2
Subtotal	57.8		58.4		(1.0	)	215.0		220.1		(2.3	)	273.4		254.5		229.9
Total Sales	$	121.8	$	122.8	(0.8	)	$	450.7	$	479.3	(6.0	)	$	760.5	$	707.3	$	643.4

Sales by Market Sector
Group Disability, Group Life, and AD&D
Core Market (< 2,000 lives)	$	53.3	$	52.3	1.9	%	$	170.0	$	193.8	(12.3	)%	$	334.9	$	322.1	$	294.0
Large Case Market	10.7		12.1		(11.6	)	65.7		65.4		0.5		152.2		130.7		119.5
Subtotal	64.0		64.4		(0.6	)	235.7		259.2		(9.1	)	487.1		452.8		413.5
Supplemental and Voluntary	57.8		58.4		(1.0	)	215.0		220.1		(2.3	)	273.4		254.5		229.9
Total Sales	$	121.8	$	122.8	(0.8	)	$	450.7	$	479.3	(6.0	)	$	760.5	$	707.3	$	643.4



	3. 1

Unum Group Sales Data for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
(in millions of dollars)	9/30/2013		9/30/2012		% Change		9/30/2013		9/30/2012		% Change		12/31/2012		12/31/2011		12/31/2010
Sales by Product
Group Long-term Disability	$	10.3	$	10.4	(1.0	)%	$	35.0	$	35.1	(0.3	)%	$	51.2	$	47.8	$	53.1
Group Life	6.1		5.6		8.9		17.4		32.7		(46.8	)	38.0		43.8		57.3
Supplemental and Voluntary	0.9		1.0		(10.0	)	3.0		4.0		(25.0	)	4.9		8.6		8.8
Total Sales	$	17.3	$	17.0	1.8		$	55.4	$	71.8	(22.8	)	$	94.1	$	100.2	$	119.2

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 lives)	$	8.7	$	9.8	(11.2	)%	$	27.8	$	30.8	(9.7	)%	$	38.7	$	37.5	$	51.6
Large Case Market	7.7		6.2		24.2		24.6		37.0		(33.5	)	50.5		54.1		58.8
Subtotal	16.4		16.0		2.5		52.4		67.8		(22.7	)	89.2		91.6		110.4
Supplemental and Voluntary	0.9		1.0		(10.0	)	3.0		4.0		(25.0	)	4.9		8.6		8.8
Total Sales	$	17.3	$	17.0	1.8		$	55.4	$	71.8	(22.8	)	$	94.1	$	100.2	$	119.2

(in millions of pounds)
Sales by Product
Group Long-term Disability	£	6.6	£	6.5	1.5	%	£	22.6	£	22.2	1.8	%	£	32.3	£	29.8	£	34.4
Group Life	3.8		3.5		8.6		11.2		20.8		(46.2	)	24.1		27.5		37.1
Supplemental and Voluntary	0.7		0.7		—		2.0		2.6		(23.1	)	3.1		5.4		5.7
Total Sales	£	11.1	£	10.7	3.7		£	35.8	£	45.6	(21.5	)	£	59.5	£	62.7	£	77.2

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 lives)	£	5.5	£	6.0	(8.3	)%	£	17.9	£	19.4	(7.7	)%	£	24.4	£	23.4	£	33.5
Large Case Market	4.9		4.0		22.5		15.9		23.6		(32.6	)	32.0		33.9		38.0
Subtotal	10.4		10.0		4.0		33.8		43.0		(21.4	)	56.4		57.3		71.5
Supplemental and Voluntary	0.7		0.7		—		2.0		2.6		(23.1	)	3.1		5.4		5.7
Total Sales	£	11.1	£	10.7	3.7		£	35.8	£	45.6	(21.5	)	£	59.5	£	62.7	£	77.2



	3. 2

Unum Group Sales Data for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013		9/30/2012		% Change		9/30/2013		9/30/2012		% Change		12/31/2012		12/31/2011		12/31/2010
Sales by Product
Accident, Sickness, and Disability	$	50.2	$	51.6	(2.7	)%	$	148.6	$	154.8	(4.0	)%	$	233.0	$	242.9	$	237.4
Life	13.7		14.4		(4.9	)	43.0		44.2		(2.7	)	67.3		65.5		65.7
Cancer and Critical Illness	12.2		12.4		(1.6	)	36.2		36.3		(0.3	)	61.6		57.5		55.7
Total Sales	$	76.1	$	78.4	(2.9	)	$	227.8	$	235.3	(3.2	)	$	361.9	$	365.9	$	358.8

Sales by Market Sector
Commercial
Core Market (<1,000 lives)	$	52.5	$	56.1	(6.4	)%	$	161.9	$	168.6	(4.0	)%	$	248.3	$	248.0	$	237.4
Large Case Market	6.8		5.8		17.2		22.1		21.8		1.4		40.9		43.9		47.4
Subtotal	59.3		61.9		(4.2	)	184.0		190.4		(3.4	)	289.2		291.9		284.8
Public Sector	16.8		16.5		1.8		43.8		44.9		(2.4	)	72.7		74.0		74.0
Total Sales	$	76.1	$	78.4	(2.9	)	$	227.8	$	235.3	(3.2	)	$	361.9	$	365.9	$	358.8



	3. 3

Unum Group Consolidated Balance Sheets



	September 30			December 31
	2013			2012			2011
Assets
Investments
Fixed Maturity Securities	$	42,597.6		$	44,973.0		$	42,486.7
Mortgage Loans	1,776.1			1,712.7			1,612.3
Policy Loans	3,242.5			3,133.8			3,051.4
Other Long-term Investments	564.5			625.0			639.2
Short-term Investments	941.0			1,460.3			1,423.5
Total Investments	49,121.7			51,904.8			49,213.1

Other Assets
Cash and Bank Deposits	63.0			77.3			116.6
Accounts and Premiums Receivable	1,650.9			1,632.6			1,672.2
Reinsurance Recoverable	4,870.7			4,842.6			4,854.6
Accrued Investment Income	700.8			694.6			681.8
Deferred Acquisition Costs	1,804.9			1,755.5			1,677.1
Goodwill	201.7			201.7			201.2
Property and Equipment	508.8			501.6			493.3
Income Tax Receivable	31.1			—			—
Other Assets	632.2			625.4			645.3
Total Assets	$	59,585.8		$	62,236.1		$	59,555.2

Liabilities
Policy and Contract Benefits	$	1,515.1		$	1,484.6		$	1,494.0
Reserves for Future Policy and Contract Benefits	42,836.8			44,694.4			43,051.9
Unearned Premiums	483.2			426.7			433.2
Other Policyholders’ Funds	1,636.0			1,644.9			1,625.9
Income Tax Payable	—			54.2			38.2
Deferred Income Tax	186.3			269.4			44.7
Short-term Debt	140.5			455.8			312.3
Long-term Debt - Non-recourse	455.0			562.5			632.5
Long-term Debt - All Other	2,176.3			2,192.9			1,937.7
Other Liabilities	1,486.7			1,838.1			1,815.1
Total Liabilities	50,915.9			53,623.5			51,385.5

Stockholders’ Equity
Common Stock	36.0			36.0			35.9
Additional Paid-in Capital	2,623.8			2,607.7			2,591.1
Accumulated Other Comprehensive Income	409.6			628.0			461.8
Retained Earnings	7,899.7			7,371.6			6,611.0
Treasury Stock	(2,299.2		)	(2,030.7		)	(1,530.1		)
Total Stockholders’ Equity	8,669.9			8,612.6			8,169.7
Total Liabilities and Stockholders’ Equity	$	59,585.8		$	62,236.1		$	59,555.2



	4

Unum Group Deferred Acquisition Costs by Segment



	Unum US			Unum UK			Colonial Life			Closed Block			Consolidated
Balances at December 31, 2010	$	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	971.8			40.9			664.4			—			1,677.1
Capitalized	249.2			11.8			206.3			—			467.3
Amortized	(196.5		)	(15.7		)	(166.5		)	—			(378.7		)
Adjustment Related to Unrealized Investment Gains/Losses	(0.2		)	—			(11.8		)	—			(12.0		)
Foreign Currency	—			1.8			—			—			1.8
Balances at December 31, 2012	1,024.3			38.8			692.4			—			1,755.5
Capitalized	189.5			7.1			152.7			—			349.3
Amortized	(181.2		)	(11.2		)	(131.3		)	—			(323.7		)
Adjustment Related to Unrealized Investment Gains/Losses	5.6			—			18.6			—			24.2
Foreign Currency	—			(0.4		)	—			—			(0.4		)
Balances at September 30, 2013	$	1,038.2		$	34.3		$	732.4		$	—		$	1,804.9



	4. 1

Unum Group Balance Sheets by Segment - September 30, 2013



	Unum US
	Group Disability		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Consolidated
Assets
Investments	$	9,436.2	$	2,512.2	$	4,009.4	$	15,957.8	$	3,377.6	$	2,463.2	$	25,574.6	$	1,748.5		$	49,121.7
Deferred Acquisition Costs	53.8		47.8		936.6		1,038.2		34.3		732.4		—		—			1,804.9
Goodwill	2.5		—		187.5		190.0		11.7		—		—		—			201.7
All Other	682.2		178.8		522.7		1,383.7		266.5		239.8		6,076.6		490.9			8,457.5
Total Assets	$	10,174.7	$	2,738.8	$	5,656.2	$	18,569.7	$	3,690.1	$	3,435.4	$	31,651.2	$	2,239.4		$	59,585.8

Liabilities
Reserves and Policyholder Benefits	$	8,301.1	$	1,731.6	$	3,470.5	$	13,503.2	$	2,971.4	$	1,989.3	$	28,007.2	$	—		$	46,471.1
Debt	4.5		—		—		4.5		—		—		478.4		2,288.9			2,771.8
All Other	312.5		75.8		382.3		770.6		77.6		239.1		86.0		499.7			1,673.0
Total Liabilities	8,618.1		1,807.4		3,852.8		14,278.3		3,049.0		2,228.4		28,571.6		2,788.6			50,915.9

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,556.5		900.6		1,700.3		4,157.4		608.5		1,127.3		2,633.9		(681.8		)	7,845.3
Net Unrealized Gain/Loss on Securities and Net Gain on Cash Flow Hedges	0.1		30.8		103.1		134.0		32.6		79.7		445.7		132.6			824.6
Total Allocated Stockholders' Equity	1,556.6		931.4		1,803.4		4,291.4		641.1		1,207.0		3,079.6		(549.2		)	8,669.9

Total Liabilities and Allocated Stockholders' Equity	$	10,174.7	$	2,738.8	$	5,656.2	$	18,569.7	$	3,690.1	$	3,435.4	$	31,651.2	$	2,239.4		$	59,585.8

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, 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	$	10,088.7		$	2,646.6	$	4,202.5	$	16,937.8	$	3,675.2	$	2,521.4	$	27,498.4	$	1,272.0		$	51,904.8
Deferred Acquisition Costs	47.4			40.8		936.1		1,024.3		38.8		692.4		—		—			1,755.5
Goodwill	2.5			—		187.5		190.0		11.7		—		—		—			201.7
All Other	646.3			149.4		443.4		1,239.1		250.1		221.1		5,570.8		1,093.0			8,374.1
Total Assets	$	10,784.9		$	2,836.8	$	5,769.5	$	19,391.2	$	3,975.8	$	3,434.9	$	33,069.2	$	2,365.0		$	62,236.1

Liabilities
Reserves and Policyholder Benefits	$	8,847.6		$	1,749.1	$	3,456.7	$	14,053.4	$	2,821.9	$	1,878.2	$	29,497.1	$	—		$	48,250.6
Debt	63.1			—		—		63.1		—		—		564.3		2,583.8			3,211.2
All Other	362.1			123.2		451.3		936.6		112.7		305.9		124.4		682.1			2,161.7
Total Liabilities	9,272.8			1,872.3		3,908.0		15,053.1		2,934.6		2,184.1		30,185.8		3,265.9			53,623.5

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,513.3			913.9		1,688.0		4,115.2		866.4		1,097.7		2,462.6		(1,204.4		)	7,337.5
Net Unrealized Gain/Loss on Securities and Net Gain on Cash Flow Hedges	(1.2		)	50.6		173.5		222.9		174.8		153.1		420.8		303.5			1,275.1
Total Allocated Stockholders' Equity	1,512.1			964.5		1,861.5		4,338.1		1,041.2		1,250.8		2,883.4		(900.9		)	8,612.6

Total Liabilities and Allocated Stockholders' Equity	$	10,784.9		$	2,836.8	$	5,769.5	$	19,391.2	$	3,975.8	$	3,434.9	$	33,069.2	$	2,365.0		$	62,236.1



	4. 3

Unum Group Financial Results by Segment



	Three Months Ended						Nine Months Ended
	9/30/2013		9/30/2012		% Change		9/30/2013		9/30/2012		% Change
Premium Income
Unum US	$	1,124.6	$	1,111.9	1.1	%	$	3,395.8	$	3,338.9	1.7	%
Unum UK	137.3		175.2		(21.6	)	418.7		519.1		(19.3	)
Colonial Life	309.1		299.4		3.2		924.1		892.6		3.5
Closed Block	326.3		342.9		(4.8	)	995.4		1,028.3		(3.2	)
	1,897.3		1,929.4		(1.7	)	5,734.0		5,778.9		(0.8	)
Net Investment Income
Unum US	233.1		236.3		(1.4	)	699.9		711.8		(1.7	)
Unum UK	30.3		34.8		(12.9	)	106.5		120.5		(11.6	)
Colonial Life	36.3		33.9		7.1		110.3		103.5		6.6
Closed Block	315.4		307.3		2.6		944.6		913.4		3.4
Corporate	0.4		6.9		(94.2	)	1.4		23.0		(93.9	)
	615.5		619.2		(0.6	)	1,862.7		1,872.2		(0.5	)
Other Income
Unum US	30.2		31.3		(3.5	)	99.0		93.1		6.3
Unum UK	0.1		—		—		0.1		0.1		—
Colonial Life	—		—		—		0.1		0.2		(50.0	)
Closed Block	23.6		26.4		(10.6	)	71.5		78.9		(9.4	)
Corporate	0.3		0.4		(25.0	)	2.7		2.2		22.7
	54.2		58.1		(6.7	)	173.4		174.5		(0.6	)
Total Operating Revenue
Unum US	1,387.9		1,379.5		0.6		4,194.7		4,143.8		1.2
Unum UK	167.7		210.0		(20.1	)	525.3		639.7		(17.9	)
Colonial Life	345.4		333.3		3.6		1,034.5		996.3		3.8
Closed Block	665.3		676.6		(1.7	)	2,011.5		2,020.6		(0.5	)
Corporate	0.7		7.3		(90.4	)	4.1		25.2		(83.7	)
	$	2,567.0	$	2,606.7	(1.5	)	$	7,770.1	$	7,825.6	(0.7	)



	5

Unum Group Financial Results by Segment



	Three Months Ended								Nine Months Ended
	9/30/2013			9/30/2012			% Change		9/30/2013			9/30/2012			% Change
Benefits and Expenses
Unum US	$	1,168.1		$	1,163.2		0.4	%	$	3,552.8		$	3,508.9		1.3	%
Unum UK	136.4			182.5			(25.3	)	429.2			543.4			(21.0	)
Colonial Life	276.4			264.6			4.5		819.0			790.3			3.6
Closed Block	639.6			651.0			(1.8	)	1,928.9			1,953.9			(1.3	)
Corporate	33.6			34.7			(3.2	)	107.8			99.1			8.8
	2,254.1			2,296.0			(1.8	)	6,837.7			6,895.6			(0.8	)
Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss) and Non-operating Retirement-related Loss
Unum US	219.8			216.3			1.6		641.9			634.9			1.1
Unum UK	31.3			27.5			13.8		96.1			96.3			(0.2	)
Colonial Life	69.0			68.7			0.4		215.5			206.0			4.6
Closed Block	25.7			25.6			0.4		82.6			66.7			23.8
Corporate	(32.9		)	(27.4		)	(20.1	)	(103.7		)	(73.9		)	(40.3	)
	312.9			310.7			0.7		932.4			930.0			0.3
Income Tax Expense	88.3			86.7			1.8		273.7			267.5			2.3

Income Before Net Realized Investment Gain (Loss) and Non-operating Retirement-related Loss	224.6			224.0			0.3		658.7			662.5			(0.6	)

Net Realized Investment Gain (Loss), Net of Tax	(17.2		)	13.8			N.M.		(1.9		)	20.7			(109.2	)

Non-operating Retirement-related Loss, Net of Tax	(1.7		)	(7.6		)	77.6		(19.9		)	(22.7		)	12.3

Net Income	$	205.7		$	230.2		(10.6	)	$	636.9		$	660.5		(3.6	)



	5. 1

Unum Group Quarterly Historical Financial Results by Segment



	9/30/13		6/30/13			3/31/13		12/31/12		9/30/12		6/30/12		3/31/12		12/31/11		9/30/11
Premium Income
Unum US	$	1,124.6	$	1,131.5		$	1,139.7	$	1,117.6	$	1,111.9	$	1,115.0	$	1,112.0	$	1,083.0	$	1,074.4
Unum UK	137.3		137.6			143.8		175.5		175.2		173.2		170.7		169.2		175.5
Colonial Life	309.1		307.9			307.1		301.9		299.4		296.9		296.3		289.2		283.7
Closed Block	326.3		328.8			340.3		342.2		342.9		342.5		342.9		347.1		347.6
	1,897.3		1,905.8			1,930.9		1,937.2		1,929.4		1,927.6		1,921.9		1,888.5		1,881.2
Net Investment Income
Unum US	233.1		231.1			235.7		240.5		236.3		236.9		238.6		238.8		240.0
Unum UK	30.3		45.4			30.8		50.3		34.8		49.2		36.5		50.6		43.3
Colonial Life	36.3		34.3			39.7		35.1		33.9		34.0		35.6		32.8		32.5
Closed Block	315.4		316.1			313.1		317.1		307.3		304.5		301.6		300.8		300.1
Corporate	0.4		(0.8		)	1.8		—		6.9		8.9		7.2		11.6		13.3
	615.5		626.1			621.1		643.0		619.2		633.5		619.5		634.6		629.2
Other Income
Unum US	30.2		32.1			36.7		31.5		31.3		30.7		31.1		30.7		30.4
Unum UK	0.1		(0.1		)	0.1		—		—		—		0.1		0.2		—
Colonial Life	—		0.1			—		0.1		—		0.1		0.1		0.1		0.1
Closed Block	23.6		23.8			24.1		21.2		26.4		26.6		25.9		25.5		26.4
Corporate	0.3		0.8			1.6		0.6		0.4		1.5		0.3		17.8		2.2
	54.2		56.7			62.5		53.4		58.1		58.9		57.5		74.3		59.1
Total Operating Revenue
Unum US	1,387.9		1,394.7			1,412.1		1,389.6		1,379.5		1,382.6		1,381.7		1,352.5		1,344.8
Unum UK	167.7		182.9			174.7		225.8		210.0		222.4		207.3		220.0		218.8
Colonial Life	345.4		342.3			346.8		337.1		333.3		331.0		332.0		322.1		316.3
Closed Block	665.3		668.7			677.5		680.5		676.6		673.6		670.4		673.4		674.1
Corporate	0.7		—			3.4		0.6		7.3		10.4		7.5		29.4		15.5
	$	2,567.0	$	2,588.6		$	2,614.5	$	2,633.6	$	2,606.7	$	2,620.0	$	2,598.9	$	2,597.4	$	2,569.5



	6

Unum Group Quarterly Historical Financial Results by Segment



	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			12/31/11			9/30/11
Benefits and Expenses
Unum US	$	1,168.1		$	1,180.7		$	1,204.0		$	1,177.4		$	1,163.2		$	1,169.9		$	1,175.8		$	1,145.1		$	1,135.6
Unum UK	136.4			149.4			143.4			190.8			182.5			192.4			168.5			168.1			184.1
Colonial Life	276.4			271.2			271.4			268.8			264.6			263.4			262.3			257.1			249.6
Closed Block	639.6			639.1			650.2			651.7			651.0			647.9			655.0			1,595.7			643.3
Corporate	33.6			37.1			37.1			35.2			34.7			36.3			28.1			48.2			36.3
	2,254.1			2,277.5			2,306.1			2,323.9			2,296.0			2,309.9			2,289.7			3,214.2			2,248.9
Income (Loss) Before Income Tax, Net Realized Investment Gain (Loss) and Non-operating Retirement-related Loss
Unum US	219.8			214.0			208.1			212.2			216.3			212.7			205.9			207.4			209.2
Unum UK	31.3			33.5			31.3			35.0			27.5			30.0			38.8			51.9			34.7
Colonial Life	69.0			71.1			75.4			68.3			68.7			67.6			69.7			65.0			66.7
Closed Block	25.7			29.6			27.3			28.8			25.6			25.7			15.4			(922.3		)	30.8
Corporate	(32.9		)	(37.1		)	(33.7		)	(34.6		)	(27.4		)	(25.9		)	(20.6		)	(18.8		)	(20.8		)
	312.9			311.1			308.4			309.7			310.7			310.1			309.2			(616.8		)	320.6
Income Tax Expense (Benefit)	88.3			92.6			92.8			84.7			86.7			84.8			96.0			(248.1		)	97.5

Income (Loss) Before Net Realized Investment Gain (Loss) and Non-operating Retirement-related Loss	224.6			218.5			215.6			225.0			224.0			225.3			213.2			(368.7		)	223.1

Net Realized Investment Gain (Loss), Net of Tax	(17.2		)	8.6			6.7			16.4			13.8			(1.4		)	8.3			4.8			(15.9		)

Non-operating Retirement-related Loss, Net of Tax	(1.7		)	(8.5		)	(9.7		)	(7.5		)	(7.6		)	(7.5		)	(7.6		)	(5.1		)	(5.2		)

Net Income (Loss)	$	205.7		$	218.6		$	212.6		$	233.9		$	230.2		$	216.4		$	213.9		$	(369.0	)	$	202.0

Net Income (Loss) Per Common Share - Assuming Dilution	$	0.78		$	0.82		$	0.79		$	0.85		$	0.83		$	0.76		$	0.73		$	(1.26	)	$	0.68



	6. 1

Unum Group Financial Results for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income	$	1,124.6		$	1,111.9		$	3,395.8		$	3,338.9		$	4,456.5		$	4,296.0		$	4,255.4
Net Investment Income	233.1			236.3			699.9			711.8			952.3			951.4			941.5
Other Income	30.2			31.3			99.0			93.1			124.6			121.6			122.8
Total	1,387.9			1,379.5			4,194.7			4,143.8			5,533.4			5,369.0			5,319.7

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	810.0			811.7			2,432.6			2,422.3			3,238.6			3,113.5			3,124.4
Commissions	124.3			124.4			382.9			383.4			507.5			474.0			460.6
Interest and Debt Expense	—			0.2			0.1			0.8			1.1			1.0			1.2
Deferral of Acquisition Costs	(65.3		)	(56.6		)	(189.5		)	(182.8		)	(249.2		)	(220.3		)	(207.8		)
Amortization of Deferred Acquisition Costs	49.7			42.3			181.2			149.1			196.5			188.1			192.6
Other Expenses	249.4			241.2			745.5			736.1			991.8			995.8			979.7
Total	1,168.1			1,163.2			3,552.8			3,508.9			4,686.3			4,552.1			4,550.7

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	219.8		$	216.3		$	641.9		$	634.9		$	847.1		$	816.9		$	769.0

Operating Ratios (% of Premium Income):
Benefit Ratio	72.0		%	73.0		%	71.6		%	72.5		%	72.7		%	72.5		%	73.4		%
Other Expense Ratio	22.2		%	21.7		%	22.0		%	22.0		%	22.3		%	23.2		%	23.0		%
Before-tax Operating Income Ratio	19.5		%	19.5		%	18.9		%	19.0		%	19.0		%	19.0		%	18.1		%



	7

Unum Group Financial Results for Unum US Group Disability



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income
Group Long-term Disability	$	385.0		$	392.4		$	1,172.5		$	1,185.7		$	1,578.8		$	1,580.2		$	1,639.4
Group Short-term Disability	129.5			120.1			389.6			356.0			476.7			455.2			430.9
Total Premium Income	514.5			512.5			1,562.1			1,541.7			2,055.5			2,035.4			2,070.3
Net Investment Income	137.0			142.9			416.2			432.3			576.9			605.0			614.6
Other Income	23.1			23.4			73.6			70.0			93.7			89.4			86.7
Total	674.6			678.8			2,051.9			2,044.0			2,726.1			2,729.8			2,771.6

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	426.3			435.1			1,307.3			1,307.6			1,741.6			1,722.1			1,747.8
Commissions	40.3			39.4			124.6			120.1			159.3			159.5			159.7
Interest and Debt Expense	—			0.2			0.1			0.8			1.1			1.0			1.2
Deferral of Acquisition Costs	(8.6		)	(5.6		)	(22.2		)	(17.5		)	(26.3		)	(21.9		)	(18.2		)
Amortization of Deferred Acquisition Costs	5.4			4.6			15.8			13.3			18.3			19.8			20.5
Other Expenses	132.6			130.6			396.8			400.1			539.0			547.0			543.7
Total	596.0			604.3			1,822.4			1,824.4			2,433.0			2,427.5			2,454.7

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	78.6		$	74.5		$	229.5		$	219.6		$	293.1		$	302.3		$	316.9

Operating Ratios (% of Premium Income):
Benefit Ratio	82.9		%	84.9		%	83.7		%	84.8		%	84.7		%	84.6		%	84.4		%
Other Expense Ratio	25.8		%	25.5		%	25.4		%	26.0		%	26.2		%	26.9		%	26.3		%
Before-tax Operating Income Ratio	15.3		%	14.5		%	14.7		%	14.2		%	14.3		%	14.9		%	15.3		%

Premium Persistency:
Group Long-term Disability							87.4		%	90.7		%	90.7		%	90.2		%	89.4		%
Group Short-term Disability							88.4		%	88.5		%	88.0		%	89.9		%	88.6		%

Case Persistency:
Group Long-term Disability							88.5		%	88.3		%	88.8		%	89.0		%	88.4		%
Group Short-term Disability							87.7		%	88.1		%	88.2		%	88.0		%	87.3		%



	7. 1

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



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income
Group Life	$	305.2		$	297.3		$	911.0		$	885.1		$	1,182.1		$	1,106.7		$	1,090.3
Accidental Death & Dismemberment	30.5			29.2			91.6			86.2			115.3			109.2			106.1
Total Premium Income	335.7			326.5			1,002.6			971.3			1,297.4			1,215.9			1,196.4
Net Investment Income	36.5			35.9			107.3			109.0			146.9			135.5			129.6
Other Income	0.6			0.6			1.5			1.5			1.9			2.2			2.4
Total	372.8			363.0			1,111.4			1,081.8			1,446.2			1,353.6			1,328.4

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	240.3			236.0			712.9			699.9			936.4			854.6			839.9
Commissions	27.4			26.1			83.0			78.2			104.6			95.5			89.3
Deferral of Acquisition Costs	(7.3		)	(4.9		)	(18.7		)	(15.0		)	(22.4		)	(18.5		)	(15.4		)
Amortization of Deferred Acquisition Costs	4.0			3.3			11.7			10.0			13.6			14.2			14.1
Other Expenses	49.9			46.4			148.8			142.9			193.1			199.3			196.5
Total	314.3			306.9			937.7			916.0			1,225.3			1,145.1			1,124.4

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	58.5		$	56.1		$	173.7		$	165.8		$	220.9		$	208.5		$	204.0

Operating Ratios (% of Premium Income):
Benefit Ratio	71.6		%	72.3		%	71.1		%	72.1		%	72.2		%	70.3		%	70.2		%
Other Expense Ratio	14.9		%	14.2		%	14.8		%	14.7		%	14.9		%	16.4		%	16.4		%
Before-tax Operating Income Ratio	17.4		%	17.2		%	17.3		%	17.1		%	17.0		%	17.1		%	17.1		%

Premium Persistency:
Group Life							88.9		%	91.1		%	90.6		%	88.0		%	91.5		%
Accidental Death & Dismemberment							89.3		%	90.8		%	90.0		%	88.2		%	90.7		%

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



	7. 2

Unum Group Financial Results for Unum US Supplemental and Voluntary



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income
Individual Disability - Recently Issued	$	114.9		$	119.9		$	349.3		$	357.0		$	477.6		$	464.7		$	457.9
Voluntary Benefits	159.5			153.0			481.8			468.9			626.0			580.0			530.8
Total Premium Income	274.4			272.9			831.1			825.9			1,103.6			1,044.7			988.7
Net Investment Income	59.6			57.5			176.4			170.5			228.5			210.9			197.3
Other Income	6.5			7.3			23.9			21.6			29.0			30.0			33.7
Total	340.5			337.7			1,031.4			1,018.0			1,361.1			1,285.6			1,219.7

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	143.4			140.6			412.4			414.8			560.6			536.8			536.7
Commissions	56.6			58.9			175.3			185.1			243.6			219.0			211.6
Deferral of Acquisition Costs	(49.4		)	(46.1		)	(148.6		)	(150.3		)	(200.5		)	(179.9		)	(174.2		)
Amortization of Deferred Acquisition Costs	40.3			34.4			153.7			125.8			164.6			154.1			158.0
Other Expenses	66.9			64.2			199.9			193.1			259.7			249.5			239.5
Total	257.8			252.0			792.7			768.5			1,028.0			979.5			971.6

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	82.7		$	85.7		$	238.7		$	249.5		$	333.1		$	306.1		$	248.1

Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability - Recently Issued	53.4		%	53.0		%	50.9		%	52.2		%	52.4		%	52.2		%	53.3		%
Voluntary Benefits	51.4		%	50.4		%	48.7		%	48.7		%	49.5		%	50.7		%	55.1		%
Other Expense Ratio	24.4		%	23.5		%	24.1		%	23.4		%	23.5		%	23.9		%	24.2		%
Before-tax Operating Income Ratio	30.1		%	31.4		%	28.7		%	30.2		%	30.2		%	29.3		%	25.1		%

Interest Adjusted Loss Ratio:
Individual Disability - Recently Issued	31.6		%	31.7		%	29.3		%	30.9		%	31.2		%	30.8		%	32.5		%

Premium Persistency:
Individual Disability - Recently Issued							90.6		%	90.8		%	91.4		%	89.3		%	90.7		%
Voluntary Benefits							77.0		%	79.2		%	78.9		%	80.5		%	80.1		%



	7. 3

Unum Group Financial Results for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income
Group Long-term Disability	$	96.5		$	102.9		$	290.7		$	306.5		$	409.7		$	419.6		$	421.2
Group Life	25.6			56.4			83.1			164.6			221.3			203.6			171.6
Supplemental and Voluntary	15.2			15.9			44.9			48.0			63.6			64.4			57.8
Total Premium Income	137.3			175.2			418.7			519.1			694.6			687.6			650.6
Net Investment Income	30.3			34.8			106.5			120.5			170.8			189.9			170.5
Other Income	0.1			—			0.1			0.1			0.1			0.3			1.2
Total	167.7			210.0			525.3			639.7			865.5			877.8			822.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	96.9			136.2			312.7			407.7			541.4			493.8			435.8
Commissions	9.6			11.1			28.4			31.7			42.6			45.7			44.1
Deferral of Acquisition Costs	(2.4		)	(2.8		)	(7.1		)	(9.9		)	(11.8		)	(15.4		)	(15.1		)
Amortization of Deferred Acquisition Costs	3.6			3.8			11.2			11.8			15.7			15.3			13.6
Other Expenses	28.7			34.2			84.0			102.1			146.3			147.7			134.9
Total	136.4			182.5			429.2			543.4			734.2			687.1			613.3

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	31.3		$	27.5		$	96.1		$	96.3		$	131.3		$	190.7		$	209.0

Operating Ratios (% of Premium Income):
Benefit Ratio	70.6		%	77.7		%	74.7		%	78.5		%	77.9		%	71.8		%	67.0		%
Other Expense Ratio	20.9		%	19.5		%	20.1		%	19.7		%	21.1		%	21.5		%	20.7		%
Before-tax Operating Income Ratio	22.8		%	15.7		%	23.0		%	18.6		%	18.9		%	27.7		%	32.1		%

Premium Persistency:
Group Long-term Disability							81.9		%	82.9		%	84.0		%	86.6		%	91.3		%
Group Life							64.8		%	80.3		%	82.5		%	89.3		%	92.7		%
Supplemental and Voluntary							78.6		%	87.0		%	84.6		%	87.3		%	88.9		%



	8

Unum Group Financial Results for Unum UK Segment - Continued



(in millions of pounds, except exchange rate)	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income
Group Long-term Disability	£	62.2		£	65.0		£	188.0		£	194.1		£	258.4		£	261.6		£	272.3
Group Life	16.5			35.7			53.8			104.3			139.6			127.0			110.9
Supplemental and Voluntary	9.7			10.1			29.0			30.4			40.1			40.1			37.4
Total Premium Income	88.4			110.8			270.8			328.8			438.1			428.7			420.6
Net Investment Income	19.5			22.1			68.9			76.4			107.7			118.4			110.2
Other Income	0.1			(0.1		)	0.1			—			—			0.1			0.9
Total	108.0			132.8			339.8			405.2			545.8			547.2			531.7

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	62.4			86.2			202.3			258.1			341.4			307.7			281.4
Commissions	6.1			7.0			18.3			20.1			26.9			28.5			28.5
Deferral of Acquisition Costs	(1.5		)	(1.8		)	(4.6		)	(6.3		)	(7.5		)	(9.5		)	(9.6		)
Amortization of Deferred Acquisition Costs	2.3			2.5			7.3			7.5			9.9			9.4			8.6
Other Expenses	18.6			21.6			54.4			64.7			92.2			92.1			87.4
Total	87.9			115.5			277.7			344.1			462.9			428.2			396.3

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	£	20.1		£	17.3		£	62.1		£	61.1		£	82.9		£	119.0		£	135.4

Weighted Average Pound/Dollar Exchange Rate	1.557			1.590			1.548			1.576			1.584			1.603			1.543



	8. 1

Unum Group Financial Results for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	185.0		$	181.8		$	554.5		$	541.8		$	724.5		$	695.3		$	661.0
Life	55.6			52.2			165.7			156.3			209.7			190.7			176.5
Cancer and Critical Illness	68.5			65.4			203.9			194.5			260.3			249.3			238.2
Total Premium Income	309.1			299.4			924.1			892.6			1,194.5			1,135.3			1,075.7
Net Investment Income	36.3			33.9			110.3			103.5			138.6			132.4			122.5
Other Income	—			—			0.1			0.2			0.3			0.5			0.7
Total	345.4			333.3			1,034.5			996.3			1,333.4			1,268.2			1,198.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	164.0			158.5			485.6			468.7			627.3			589.4			534.7
Commissions	61.9			64.0			188.4			191.2			254.5			245.9			232.6
Deferral of Acquisition Costs	(50.1		)	(51.6		)	(152.7		)	(154.9		)	(206.3		)	(203.1		)	(196.8		)
Amortization of Deferred Acquisition Costs	45.3			40.9			131.3			124.7			166.5			151.2			150.1
Other Expenses	55.3			52.8			166.4			160.6			217.1			214.7			208.6
Total	276.4			264.6			819.0			790.3			1,059.1			998.1			929.2

Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	69.0		$	68.7		$	215.5		$	206.0		$	274.3		$	270.1		$	269.7

Operating Ratios (% of Premium Income):
Benefit Ratio	53.1		%	52.9		%	52.5		%	52.5		%	52.5		%	51.9		%	49.7		%
Other Expense Ratio	17.9		%	17.6		%	18.0		%	18.0		%	18.2		%	18.9		%	19.4		%
Before-tax Operating Income Ratio	22.3		%	22.9		%	23.3		%	23.1		%	23.0		%	23.8		%	25.1		%

Persistency:
Accident, Sickness, and Disability							75.5		%	75.3		%	75.7		%	73.8		%	75.9		%
Life							85.3		%	85.2		%	85.7		%	85.0		%	86.0		%
Cancer and Critical Illness							83.5		%	84.3		%	84.5		%	84.0		%	84.9		%



	9

Unum Group Financial Results for Closed Block Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Premium Income
Individual Disability	$	169.3		$	183.1		$	521.7		$	554.9		$	736.4		$	787.0		$	847.0
Long-term Care	157.0			159.4			473.6			471.5			631.9			608.1			599.2
All Other	—			0.4			0.1			1.9			2.2			0.2			3.5
Total Premium Income	326.3			342.9			995.4			1,028.3			1,370.5			1,395.3			1,449.7
Net Investment Income	315.4			307.3			944.6			913.4			1,230.5			1,189.7			1,166.4
Other Income	23.6			26.4			71.5			78.9			100.1			106.1			113.6
Total	665.3			676.6			2,011.5			2,020.6			2,701.1			2,691.1			2,729.7

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	570.7			580.5			1,721.0			1,734.3			2,314.9			3,012.8			2,259.2
Commissions	26.8			28.2			81.9			84.5			112.6			113.6			118.1
Interest and Debt Expense	2.1			2.5			6.4			7.9			10.4			10.5			11.7
Deferral of Acquisition Costs	—			—			—			—			—			(3.7		)	(2.8		)
Amortization of Deferred Acquisition Costs	—			—			—			—			—			11.1			17.0
Impairment of Long-term Care Deferred Acquisition Costs	—			—			—			—			—			196.0			—
Other Expenses	40.0			39.8			119.6			127.2			167.7			180.0			207.9
Total	639.6			651.0			1,928.9			1,953.9			2,605.6			3,520.3			2,611.1

Operating Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses, as reported	$	25.7		$	25.6		$	82.6		$	66.7		$	95.5		$	(829.2	)	$	118.6

Interest Adjusted Loss Ratios, as reported:
Individual Disability	80.6		%	82.5		%	81.6		%	82.7		%	83.0		%	108.0		%	85.0		%
Long-term Care	89.6		%	91.3		%	89.7		%	90.1		%	90.1		%	179.3		%	80.8		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	12.3		%	11.6		%	12.0		%	12.4		%	12.2		%	12.9		%	14.3		%
Before-tax Operating Income (Loss) Ratio, as reported	7.9		%	7.5		%	8.3		%	6.5		%	7.0		%	(59.4		)%	8.2		%

Premium Persistency:
Individual Disability							92.0		%	92.6		%	92.5		%	92.9		%	93.0		%
Long-term Care							95.4		%	95.7		%	95.8		%	96.0		%	95.8		%



	10

Unum Group Financial Results for Closed Block Segment - Continued



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses, as reported	$	25.7		$	25.6		$	82.6		$	66.7		$	95.5		$	(829.2	)	$	118.6
Individual Disability Reserve Charge	—			—			—			—			—			183.5			—
Long-term Care Reserve Charge	—			—			—			—			—			573.6			—
Impairment of Long-term Care Deferred Acquisition Costs	—			—			—			—			—			196.0			—

Operating Income Before Income Tax and Net Realized Investment Gains and Losses, as adjusted	$	25.7		$	25.6		$	82.6		$	66.7		$	95.5		$	123.9		$	118.6

Interest Adjusted Loss Ratios, as adjusted:
Individual Disability	80.6		%	82.5		%	81.6		%	82.7		%	83.0		%	84.7		%	85.0		%
Long-term Care	89.6		%	91.3		%	89.7		%	90.1		%	90.1		%	84.9		%	80.8		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	12.3		%	11.6		%	12.0		%	12.4		%	12.2		%	12.9		%	14.3		%
Before-tax Operating Income Ratio, as adjusted	7.9		%	7.5		%	8.3		%	6.5		%	7.0		%	8.9		%	8.2		%



	10. 1

Unum Group Financial Results for Corporate Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2013			9/30/2012			9/30/2013			9/30/2012			12/31/2012			12/31/2011			12/31/2010
Operating Revenue
Net Investment Income	$	0.4		$	6.9		$	1.4		$	23.0		$	23.0		$	56.2		$	94.6
Other Income	0.3			0.4			2.7			2.2			2.8			20.6			3.3
Total	0.7			7.3			4.1			25.2			25.8			76.8			97.9

Interest and Other Expenses	33.6			34.7			107.8			99.1			134.3			155.2			136.8

Operating Loss Before Non-operating Retirement-related Loss, Income Tax, and Net Realized Investment Gains and Losses	$	(32.9	)	$	(27.4	)	$	(103.7	)	$	(73.9	)	$	(108.5	)	$	(78.4	)	$	(38.9	)



	11

Unum Group Reserves



	September 30, 2013
	Gross												Total
	Policy				Claim Reserves								Reinsurance		Total
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	6,859.9	$	579.1	30.3	%	$	7,439.0	$	66.6	$	7,372.4
Group Life and Accidental Death & Dismemberment	73.0		0.5		790.6		163.6		3.9		1,027.2		2.9		1,024.3
Individual Disability - Recently Issued	556.5		3.5		1,144.2		124.1		5.2		1,824.8		101.3		1,723.5
Voluntary Benefits	1,278.4		8.1		42.3		51.8		0.4		1,372.5		29.3		1,343.2
Unum US Segment	1,907.9		12.1		8,837.0		918.6		39.8		11,663.5		200.1		11,463.4

Unum UK Segment	24.6		0.2		2,247.2		157.5		9.8		2,429.3		126.9		2,302.4

Colonial Life Segment	1,554.8		9.8		263.2		109.5		1.5		1,927.5		9.1		1,918.4

Individual Disability	889.2		5.6		10,371.8		289.7		43.5		11,550.7		1,542.3		10,008.4
Long-term Care	5,669.3		35.9		837.2		83.1		3.8		6,589.6		42.2		6,547.4
Other	5,756.9		36.4		238.7		158.1		1.6		6,153.7		4,889.2		1,264.5
Closed Block Segment	12,315.4		77.9		11,447.7		530.9		48.9		24,294.0		6,473.7		17,820.3

Subtotal, Excluding Unrealized Adjustment	$	15,802.7	100.0	%	$	22,795.1	$	1,716.5	100.0	%	40,314.3		6,809.8		33,504.5

Unrealized Adjustment to Reserves for Unrealized Gain on Securities											4,037.6		275.0		3,762.6

Consolidated											$	44,351.9	$	7,084.8	$	37,267.1

Compared to the December 31, 2012 balance, the decline in the unrealized adjustment to reserves for unrealized gain on securities was due primarily to an increase in U.S. Treasury rates, partially offset by a decrease in credit spreads. This unrealized adjustment is consistent with a similar adjustment to our invested assets.



	12

Unum Group Reserves



	December 31, 2012
	Gross												Total
	Policy				Claim Reserves								Reinsurance		Total
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	7,000.8	$	596.0	30.9	%	$	7,596.8	$	61.3	$	7,535.5
Group Life and Accidental Death & Dismemberment	73.8		0.5		790.1		168.1		3.9		1,032.0		1.0		1,031.0
Individual Disability - Recently Issued	557.8		3.6		1,093.2		126.0		5.0		1,777.0		91.2		1,685.8
Voluntary Benefits	1,224.3		8.0		42.4		49.4		0.4		1,316.1		28.6		1,287.5
Unum US Segment	1,855.9		12.1		8,926.5		939.5		40.2		11,721.9		182.1		11,539.8

Unum UK Segment	25.6		0.2		2,251.7		142.2		9.7		2,419.5		108.3		2,311.2

Colonial Life Segment	1,490.3		9.7		251.4		99.4		1.4		1,841.1		9.4		1,831.7

Individual Disability	985.7		6.4		10,406.2		297.3		43.6		11,689.2		1,492.7		10,196.5
Long-term Care	5,272.5		34.4		747.0		81.3		3.4		6,100.8		47.0		6,053.8
Other	5,704.5		37.2		258.8		165.7		1.7		6,129.0		4,829.9		1,299.1
Closed Block Segment	11,962.7		78.0		11,412.0		544.3		48.7		23,919.0		6,369.6		17,549.4

Subtotal, Excluding Unrealized Adjustment	$	15,334.5	100.0	%	$	22,841.6	$	1,725.4	100.0	%	39,901.5		6,669.4		33,232.1

Unrealized Adjustment to Reserves for Unrealized Gain on Securities											6,277.5		351.5		5,926.0

Consolidated											$	46,179.0	$	7,020.9	$	39,158.1



	12. 1

Unum Group Investment Fact Sheet at September 30, 2013



	9/30/2013						9/30/2013			6/30/2013
Fixed Maturity Securities (Fair Value)						Selected Statistics
Public	$	27,716.7		65.1	%	Duration Weighted Book Yield	6.32		%	6.35		%
Asset-Backed Securities (1)	71.3			0.2		Average Duration (in years)	7.51			7.62
Residential Mortgage-Backed Securities (2)	1,966.0			4.6			.
Commercial Mortgage-Backed Securities	124.3			0.3
Private Placements	5,230.0			12.3
High Yield	3,082.8			7.2
Government Securities	2,598.5			6.1
Municipal Securities (3)	1,769.8			4.1
Redeemable Preferred Stocks	38.2			0.1
Total	$	42,597.6		100.0	%

	Amortized Cost			Fair Value
Quality Ratings of Fixed Maturity Securities						Schedule BA and Non-Current
Aaa	8.3		%	8.4	%	Total Non-Current Investments	$	39.9		$	53.5
Aa	9.7			9.8		Total Schedule BA Assets	$	465.4		$	460.1
A	30.0			30.9
Baa	43.9			43.5
Below Baa	8.1			7.4
Total	100.0		%	100.0	%

(1) Includes $0.5 million of high yield asset-backed securities.
(2) Includes $42.1 million of high yield mortgage-backed securities.
(3) Includes $16.2 million of high yield taxable municipal securities.



	13

Unum Group Investment Fact Sheet at September 30, 2013



Fixed Maturity Securities - By Industry Classification - Unrealized Gain (Loss)
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	$	2,423.1	$	160.5	$	516.8	$	39.1	$	1,906.3	$	199.6
Capital Goods	3,693.4		359.3		454.6		17.3		3,238.8		376.6
Communications	2,828.2		313.3		339.8		23.9		2,488.4		337.2
Consumer Cyclical	1,163.9		116.8		144.8		8.8		1,019.1		125.6
Consumer Non-Cyclical	5,668.4		597.3		844.2		50.1		4,824.2		647.4
Energy (Oil & Gas)	3,696.5		461.8		344.1		19.2		3,352.4		481.0
Financial Institutions	3,455.2		277.4		215.6		8.6		3,239.6		286.0
Mortgage/Asset-Backed	2,161.6		214.6		51.0		1.4		2,110.6		216.0
Sovereigns	1,375.3		172.2		32.4		2.0		1,342.9		174.2
Technology	1,125.0		77.7		356.7		21.0		768.3		98.7
Transportation	1,419.1		173.0		117.0		5.9		1,302.1		178.9
U.S. Government Agencies and Municipalities	2,993.0		296.7		420.9		41.2		2,572.1		337.9
Public Utilities	10,556.7		1,184.6		807.5		49.1		9,749.2		1,233.7
Redeemable Preferred Stocks	38.2		5.2		—		—		38.2		5.2
Total	$	42,597.6	$	4,410.4	$	4,645.4	$	287.6	$	37,952.2	$	4,698.0

Fixed Maturity Securities - Financial Institutions Classification - Unrealized Gain (Loss)
Associations	$	12.7	$	0.8	$	—	$	—	$	12.7	$	0.8
Banking	2,003.5		153.9		155.9		5.7		1,847.6		159.6
Finance Captive	239.1		17.6		—		—		239.1		17.6
Insurance	829.6		77.8		38.4		2.2		791.2		80.0
Other Financial Institutions	34.8		1.4		—		—		34.8		1.4
Real Estate Management Services	335.5		25.9		21.3		0.7		314.2		26.6
Total	$	3,455.2	$	277.4	$	215.6	$	8.6	$	3,239.6	$	286.0

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	$	583.9	$	12.3			$	214.2	$	4.3
91 through 180 days	2,697.2		175.7				656.3		38.1
181 through 270 days	96.3		12.3				27.7		2.0
271 days to 1 year	83.9		9.5				—		—
Greater than 1 year	149.3		11.3				136.6		22.1
Total	$	3,610.6	$	221.1			$	1,034.8	$	66.5



	13. 1

Unum Group Investment Fact Sheet at September 30, 2013



Asset and Mortgage-Backed Securities Portfolio
	Amortized Cost		Fair Value				% of Total Fixed Maturity Securities		Average Rating
Asset-Backed Securities
Credit Cards	$	59.5	$	59.8	2.8	%	0.2	%	Aaa
Auto Loans	11.0		11.0		0.5		—		Aaa
Home Equity	0.8		0.5		—		—		Caa2
Total	71.3		71.3		3.3		0.2		Aaa

Residential Mortgage-Backed Securities
Agency CMOs	1,257.9		1,448.1		67.0		3.4		Aaa
Agency Pass-throughs	463.5		475.8		22.0		1.1		Aaa
Non-agency CMOs - Prime	40.3		42.1		1.9		0.1		B1
Total	1,761.7		1,966.0		90.9		4.6		Aaa

Commercial Mortgage-Backed Securities
Agency CMBS	114.0		124.3		5.8		0.3		A3

Total	$	1,947.0	$	2,161.6	100.0	%	5.1	%	Aa1



	13. 2

Unum Group Statutory Capital and Surplus



	As of September 30, 2013						As of December 31, 2012
	Capital and Surplus		AVR		Capital and Surplus + AVR		Capital and Surplus + AVR
Traditional U.S. Life Insurance Companies

Provident Life and Accident	$	653.7	$	84.2	$	737.9	$	726.2

Unum Life of America	1,578.4		198.1		1,776.5		1,764.2

Paul Revere Life (1)	369.1		34.4		403.5		406.0

Colonial Life & Accident	552.1		32.5		584.6		566.0

Provident Life and Casualty	162.2		9.2		171.4		154.8

First Unum Life	241.9		20.3		262.2		267.8

Paul Revere Variable (1)	39.8		0.5		40.3		39.1

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

Special Purpose Reinsurance Vehicles

Tailwind Reinsurance Company	$	52.6	$	0.2	$	52.8	$	58.4

Northwind Reinsurance Company	1,096.7		4.2		1,100.9		1,134.4

UnumProvident International Ltd.	575.2		—		575.2		576.8
Amounts shown are preliminary estimates and may change prior to the regulatory filing of each subsidiary's financial information.



	14

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	2013			2012			2013			2012			2013			2012
Provident Life and Accident	$	137.5		$	116.3		$	(3.9	)	$	(1.0	)	$	133.6		$	115.3
Unum Life of America	200.9			158.7			(15.3		)	(14.4		)	185.6			144.3
Paul Revere Life	56.0			63.5			(5.3		)	(1.0		)	50.7			62.5
Colonial Life & Accident	107.6			100.6			(1.2		)	0.1			106.4			100.7
Provident Life and Casualty	18.5			12.3			—			—			18.5			12.3
First Unum Life	21.5			0.1			(0.6		)	—			20.9			0.1
Paul Revere Variable	2.0			1.7			(0.2		)	0.1			1.8			1.8
Total, as reported	544.0			453.2			(26.5		)	(16.2		)	517.5			437.0
Intercompany Dividends	(17.0		)	(18.3		)	—			—			(17.0		)	(18.3		)
Total, as adjusted	$	527.0		$	434.9		$	(26.5	)	$	(16.2	)	$	500.5		$	418.7

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	4.2		$	6.8		$	0.2		$	—		$	4.4		$	6.8
Northwind Reinsurance Company	13.0			49.1			(0.3		)	0.5			12.7			49.6
UnumProvident International Ltd.	(33.7		)	(30.5		)	0.1			4.5			(33.6		)	(26.0		)
Total	$	(16.5	)	$	25.4		$	—		$	5.0		$	(16.5	)	$	30.4

	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	2013			2012			2013			2012			2013			2012
Provident Life and Accident	$	30.1		$	36.4		$	0.9		$	(1.5	)	$	31.0		$	34.9
Unum Life of America	63.6			58.3			(2.3		)	(6.0		)	61.3			52.3
Paul Revere Life	13.8			21.2			0.2			0.1			14.0			21.3
Colonial Life & Accident	39.6			32.8			(0.1		)	—			39.5			32.8
Provident Life and Casualty	8.9			4.3			—			—			8.9			4.3
First Unum Life	3.1			(8.4		)	(0.1		)	0.1			3.0			(8.3		)
Paul Revere Variable	0.7			0.6			—			—			0.7			0.6
Total, as reported	159.8			145.2			(1.4		)	(7.3		)	158.4			137.9
Intercompany Dividends	(5.7		)	(5.6		)	—			—			(5.7		)	(5.6		)
Total, as adjusted	$	154.1		$	139.6		$	(1.4	)	$	(7.3	)	$	152.7		$	132.3

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	1.2		$	0.2		$	0.1		$	—		$	1.3		$	0.2
Northwind Reinsurance Company	(7.0		)	38.6			(0.1		)	(0.1		)	(7.1		)	38.5
UnumProvident International Ltd.	(21.5		)	(18.5		)	0.5			3.8			(21.0		)	(14.7		)
Total	$	(27.3	)	$	20.3		$	0.5		$	3.7		$	(26.8	)	$	24.0

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



	2013			2012			2011
Reserve Balance from Prior Year End	$	6,682.4		$	6,755.9		$	6,829.4
Other Adjustments to Beginning Balance (see Schedule H)	—			(3.7		)	(3.9		)
Reserve Balance January 1 (a)	6,682.4			6,752.2			6,825.5
Paid on Prior Year Claims	(390.0		)	(391.2		)	(390.5		)
Interest Earned on Reserves	96.7			104.6			110.7
Incurred on Prior Year Claims	(123.3		)	(109.9		)	(122.3		)
Reserve Balance March 31	$	6,265.8		$	6,355.7		$	6,423.4

Reserve Balance March 31	$	6,265.8		$	6,355.7		$	6,423.4
Paid on Prior Year Claims	(324.2		)	(335.8		)	(339.9		)
Interest Earned on Reserves	91.6			96.6			104.0
Incurred on Prior Year Claims	(87.1		)	(130.3		)	(107.5		)
Reserve Balance June 30	$	5,946.1		$	5,986.2		$	6,080.0

Reserve Balance June 30	$	5,946.1		$	5,986.2		$	6,080.0
Paid on Prior Year Claims	(308.7		)	(315.1		)	(316.4		)
Interest Earned on Reserves	86.7			89.5			98.9
Incurred on Prior Year Claims	(78.6		)	(77.6		)	(49.4		)
Reserve Balance September 30	$	5,645.5		$	5,683.0		$	5,813.1

Reserve Balance September 30				$	5,683.0		$	5,813.1
Paid on Prior Year Claims				(273.2		)	(291.7		)
Interest Earned on Reserves				85.3			92.5
Incurred on Prior Year Claims				(93.5		)	(111.4		)
Reserve Balance December 31 on Prior Year Claims				5,401.6			5,502.5
Reserve Balance December 31 on Current Year Claims				1,280.8			1,253.4
Reserve Balance December 31 on Total Claims Incurred (b)				$	6,682.4		$	6,755.9

(a) 2012 and 2011 balances agree to Schedule H Part 3 Line 3.2 Column 2
(b) Agrees 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



	2012			2011			2010
Paid on Prior Year Existing Claims - Full Year	$	1,315.3		$	1,338.5		$	1,285.4
(Agrees to Schedule H Part 3 Line 1.1 Column 2)

Incurred on Prior Year Claims - Full Year	$	(411.3	)	$	(390.6	)	$	(382.6	)
Interest Earned on Reserves - Full Year	375.9			406.1			423.3
Incurred on Prior Year Claims - Full Year, Excluding Interest Earned	$	(35.4	)	$	15.5		$	40.7
(Agrees 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.

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



	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 revenue, which excludes realized investment gains or losses, and operating income or loss, which excludes realized investment gains or losses and non-operating retirement-related gains or losses, both of which are recurring, are better performance measures and better indicators 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 revenue and net income or net loss as measures 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, is an important measure.

2013 Significant Transactions and Events

Financing

In January 2013, we purchased and retired the outstanding principal of $62.5 million on our senior secured non-recourse notes issued by Tailwind Holdings, LLC, resulting in a before-tax gain of $4.0 million.

In August 2013, we entered into a five-year, $400.0 million unsecured revolving credit facility. Borrowings under the facility are for general corporate uses and are subject to financial covenants, negative covenants, and events of default that are customary. The facility provides for interest rates based on either the prime rate or LIBOR. At September 30, 2013, no amount was outstanding on the facility.

Share Repurchase Program

During the first nine months of 2013, we repurchased 9.8 million shares at a cost of $268.5 million, including commissions, under the July 2012 share repurchase program. The dollar value of shares remaining under the repurchase program was $281.6 million at September 30, 2013.

Employee Benefit Plan Changes

In June and September 2013, we adopted plan amendments which freeze participation and benefit accruals in our defined benefit pension plans in the U.S. and U.K., respectively, effective December 31, 2013 for the U.S. plans and June 30, 2014 for the U.K. plan. As a result of these plan amendments, we recognized a net before-tax curtailment gain of $3.7 million and $3.0 million in the third quarter and first nine months of 2013, respectively. Because the amendments eliminate all future service

accruals subsequent to the effective dates of the amendments, we were also required to remeasure the benefit obligations of our pension plans, which decreased our net pension liability approximately $330 million as of September 30, 2013, with a corresponding increase in other comprehensive income, less applicable income tax of approximately $115 million. Concurrent with our amendments to our defined benefit pension plans, we adopted amendments to increase the benefits under our defined

contribution plans commensurate with the effective dates of the pension plan amendments.

In addition, because all participants in the U.S. and U.K. pension plans are considered inactive as a result of these amendments, we are required to amortize the net actuarial loss for these plans over the average remaining life expectancy of the plan participants, which is approximately 30 years for U.S. participants and 35 years for U.K. participants. The net actuarial loss was previously amortized over the average future working life of pension plan participants, or approximately 11 years.

The unrecognized net actuarial loss and prior service credit included in accumulated other comprehensive income and expected to be amortized and included in net periodic benefit cost during 2013 is approximately $28.1 million before tax and $18.5 million after tax.



(continued on next page)	15

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.

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.

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. During 2012, we repurchased 23.6 million shares on the open market at a cost of $500.6 million, including commissions of $0.6 million.

2011 Significant Transactions and Events

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 considered closed blocks of business, effective 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 Board'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 assumption 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 increase 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



(continued on next page)	15. 1

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 deferred acquisition costs of $196.0 million, as adjusted for the January 1, 2012 retrospective adoption of the accounting standards update related to deferred acquisition costs, 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 that remained 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.

During February 2011, we repurchased 7.1 million shares, at a cost of $200.0 million, using an accelerated repurchase agreement with a financial counterparty. Under the terms of the repurchase agreement, we received a price adjustment based on the volume weighted average price of our common stock during the term of the agreement. The price adjustment resulted in the delivery to us of 0.6 million additional shares. In total, we repurchased 7.7 million shares of our common stock under this 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 for a total repurchase of 25.4 million shares. Pursuant to these repurchase programs, we retired 7.7 million shares during 2011. All other repurchased shares were classified as treasury stock and accounted for using the cost method.

Income Tax

Our income tax for 2011 includes a reduction in federal income taxes of $41.3 million 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.



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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. We also purchased and retired $10.0 million of our 7.08% medium-term notes due 2024.

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 reduced 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 included a non-cash tax charge of $10.2 million to reflect the impact of the tax law change.



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Unum (UNM) 8-KUnum Group Reports Third Quarter 2013 Results