Exhibit 99.2
| Unum Group | |
| Statistical Supplement First Quarter 2011 | |
| 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 | 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 |
| Individual Disability - Closed Block | 10 |
| Corporate and Other | 11 |
| Reserves | 12 |
| Investment Fact Sheets | 13 |
| Statutory-Basis Financial Information | 14 |
| Notes to Statistical Supplement | 15 |
| Throughout this supplement, segment operating results exclude income taxes and realized investment gains and losses. | |
| See "Notes to Statistical Supplement" on page 15 for a discussion of non-GAAP financial measures and significant transactions and events. | |
| Unum Group Financial Highlights | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Financial Results | ||||||||||||||||||||
| Premium Income | $ | 1,869.5 | $ | 1,863.2 | $ | 7,431.4 | $ | 7,475.5 | $ | 7,783.3 | ||||||||||
| Segment Operating Revenue | $ | 2,547.9 | $ | 2,536.0 | $ | 10,168.5 | $ | 10,079.3 | $ | 10,448.2 | ||||||||||
| Net Realized Investment Gain (Loss) | 15.2 | 25.6 | 24.7 | 11.7 | (465.9 | ) | ||||||||||||||
| Revenue | $ | 2,563.1 | $ | 2,561.6 | $ | 10,193.2 | $ | 10,091.0 | $ | 9,982.3 | ||||||||||
| Net Income | $ | 225.4 | $ | 229.8 | $ | 886.1 | $ | 852.6 | $ | 553.2 | ||||||||||
| Assets | $ | 57,116.8 | $ | 54,997.2 | $ | 57,307.7 | $ | 54,477.0 | $ | 49,417.4 | ||||||||||
| Stockholders' Equity | $ | 8,983.8 | $ | 8,780.2 | $ | 8,944.4 | $ | 8,500.1 | $ | 6,397.9 | ||||||||||
| 2010 | ||||||||||||||||||||
● Full year 2010 results include a non-cash tax charge of $10.2 million to reflect the impact of a tax law change. | ||||||||||||||||||||
1
| Unum Group Financial Highlights | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Per Common Share Information | ||||||||||||||||||||
| Net Income | ||||||||||||||||||||
| Assuming Dilution | $ | 0.72 | $ | 0.69 | $ | 2.71 | $ | 2.57 | $ | 1.62 | ||||||||||
| Basic | $ | 0.72 | $ | 0.69 | $ | 2.72 | $ | 2.57 | $ | 1.62 | ||||||||||
| Dividends Paid | $ | 0.0925 | $ | 0.0825 | $ | 0.350 | $ | 0.315 | $ | 0.300 | ||||||||||
| Book Value per Share: | ||||||||||||||||||||
| As Reported | $ | 29.08 | $ | 26.38 | $ | 28.25 | $ | 25.62 | $ | 19.32 | ||||||||||
| Excluding Net Unrealized Gain (Loss) on Securities | ||||||||||||||||||||
| and Net Gain on Cash Flow Hedges | $ | 26.50 | $ | 23.81 | $ | 25.82 | $ | 23.36 | $ | 20.45 | ||||||||||
| Excluding Foreign Currency Translation Adjustment | $ | 26.78 | $ | 24.23 | $ | 26.17 | $ | 23.60 | $ | 20.99 | ||||||||||
| Excluding Unrecognized Pension and Postretirement | ||||||||||||||||||||
| Benefit Costs | $ | 27.79 | $ | 25.17 | $ | 27.17 | $ | 24.59 | $ | 22.22 | ||||||||||
| Price (UNM closing price on last trading day of period) | $ | 26.25 | $ | 24.77 | $ | 24.22 | $ | 19.52 | $ | 18.60 | ||||||||||
| See page 4 of this statistical supplement for detail on the components of AOCI excluded from Total Stockholders' Equity in computing the book value per share measures listed above. | ||||||||||||||||||||
| Total Stockholders' Equity, Net Unrealized Gain on Securities, Net Gain on Cash Flow Hedges, Foreign Currency Translation Adjustment, and Unrecognized Pension and Postretirement Benefit Costs at March 31, 2010 are $8,780.2 million, $499.2 million, $356.8 million, $(141.0) million, and $(312.1) million, respectively. | ||||||||||||||||||||
| Total Stockholders' Equity, Net Unrealized Loss on Securities, Net Gain on Cash Flow Hedges, Foreign Currency Translation Adjustment, and Unrecognized Pension and Postretirement Benefit Costs at December 31, 2008 are $6,397.9 million, $(832.6) million, $458.5 million, $(177.6) million, and $(406.5) million, respectively. | ||||||||||||||||||||
1.1
| Unum Group Consolidated Statements of Income | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Premium Income | $ | 1,869.5 | $ | 1,863.2 | $ | 7,431.4 | $ | 7,475.5 | $ | 7,783.3 | ||||||||||
| Net Investment Income | 618.7 | 613.0 | 2,495.5 | 2,346.6 | 2,389.0 | |||||||||||||||
| Net Realized Investment Gain (Loss) | 15.2 | 25.6 | 24.7 | 11.7 | (465.9 | ) | ||||||||||||||
| Other Income | 59.7 | 59.8 | 241.6 | 257.2 | 275.9 | |||||||||||||||
| Total Revenue | 2,563.1 | 2,561.6 | 10,193.2 | 10,091.0 | 9,982.3 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 1,593.0 | 1,568.9 | 6,354.1 | 6,291.6 | 6,626.4 | |||||||||||||||
| Commissions | 224.3 | 218.3 | 855.4 | 837.1 | 853.3 | |||||||||||||||
| Interest and Debt Expense - Non-recourse Debt | 3.0 | 3.1 | 12.9 | 18.6 | 39.3 | |||||||||||||||
| Interest and Debt Expense - All Other Debt | 34.9 | 30.3 | 128.9 | 106.8 | 117.4 | |||||||||||||||
| Deferral of Acquisition Costs | (158.3 | ) | (154.9 | ) | (607.7 | ) | (593.6 | ) | (590.9 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 138.3 | 141.2 | 547.1 | 526.2 | 519.1 | |||||||||||||||
| Other Expenses | 397.7 | 393.5 | 1,571.2 | 1,612.0 | 1,593.7 | |||||||||||||||
| Total Benefits and Expenses | 2,232.9 | 2,200.4 | 8,861.9 | 8,798.7 | 9,158.3 | |||||||||||||||
| Income from Continuing Operations Before | ||||||||||||||||||||
| Income Taxes | 330.2 | 361.2 | 1,331.3 | 1,292.3 | 824.0 | |||||||||||||||
| Income Taxes | 104.8 | 131.4 | 445.2 | 439.7 | 270.8 | |||||||||||||||
| Net Income | $ | 225.4 | $ | 229.8 | $ | 886.1 | $ | 852.6 | $ | 553.2 | ||||||||||
| Average Number of Shares Outstanding | ||||||||||||||||||||
| Basic | 312,742,274 | 332,270,218 | 325,839,020 | 331,266,247 | 341,022,792 | |||||||||||||||
| Dilutive Securities: | ||||||||||||||||||||
| Options and Other Nonvested Stock Awards | 1,590,043 | 1,254,490 | 1,382,036 | 869,934 | 537,505 | |||||||||||||||
| Assuming Dilution | 314,332,317 | 333,524,708 | 327,221,056 | 332,136,181 | 341,560,297 | |||||||||||||||
| Actual Number of Shares Outstanding | 308,966,237 | 332,775,452 | 316,573,452 | 331,809,247 | 331,120,345 | |||||||||||||||
2
| Unum Group Sales Data | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| 3/31/2011 | 3/31/2010 | % Change | 12/31/2010 | 12/31/2009 | 12/31/2008 | |||||||||||||||||||
| Unum US Segment | ||||||||||||||||||||||||
| Fully Insured Products | $ | 180.0 | $ | 163.7 | 10.0 | % | $ | 669.4 | $ | 709.2 | $ | 701.5 | ||||||||||||
| Administrative Services | ||||||||||||||||||||||||
| Only (ASO) Products | 1.4 | 0.6 | 133.3 | 6.3 | 7.7 | 7.2 | ||||||||||||||||||
| Total Unum US Segment | 181.4 | 164.3 | 10.4 | 675.7 | 716.9 | 708.7 | ||||||||||||||||||
| Unum UK Segment | 17.6 | 24.2 | (27.3 | ) | 119.2 | 123.2 | 99.5 | |||||||||||||||||
| Colonial Life Segment | 70.6 | 73.3 | (3.7 | ) | 358.8 | 343.8 | 340.2 | |||||||||||||||||
| Individual Disability - | ||||||||||||||||||||||||
| Closed Block Segment | 0.1 | 0.2 | (50.0 | ) | 0.8 | 1.5 | 2.4 | |||||||||||||||||
| Total Sales | $ | 269.7 | $ | 262.0 | 2.9 | $ | 1,154.5 | $ | 1,185.4 | $ | 1,150.8 | |||||||||||||
3
| Unum Group Sales Data for Unum US Segment | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| 3/31/2011 | 3/31/2010 | % Change | 12/31/2010 | 12/31/2009 | 12/31/2008 | |||||||||||||||||||
| Sales by Product | ||||||||||||||||||||||||
| Fully Insured Products | ||||||||||||||||||||||||
| Group Disability, Group Life, and AD&D | ||||||||||||||||||||||||
| Group Long-term Disability | $ | 29.5 | $ | 27.6 | 6.9 | % | $ | 148.2 | $ | 182.1 | $ | 190.3 | ||||||||||||
| Group Short-term Disability | 14.0 | 14.3 | (2.1 | ) | 80.3 | 83.9 | 71.5 | |||||||||||||||||
| Group Life | 30.8 | 28.5 | 8.1 | 166.9 | 184.9 | 165.4 | ||||||||||||||||||
| AD&D | 2.5 | 3.5 | (28.6 | ) | 18.1 | 18.7 | 17.2 | |||||||||||||||||
| Subtotal | 76.8 | 73.9 | 3.9 | 413.5 | 469.6 | 444.4 | ||||||||||||||||||
| Supplemental and Voluntary | ||||||||||||||||||||||||
| Individual Disability - Recently Issued | 14.2 | 9.6 | 47.9 | 42.7 | 51.6 | 57.9 | ||||||||||||||||||
| Group Long-term Care | 7.0 | 5.4 | 29.6 | 25.8 | 22.4 | 32.2 | ||||||||||||||||||
| Individual Long-term Care | - | - | - | 0.2 | 3.7 | 8.4 | ||||||||||||||||||
| Voluntary Benefits | 82.0 | 74.8 | 9.6 | 187.2 | 161.9 | 158.6 | ||||||||||||||||||
| Subtotal | 103.2 | 89.8 | 14.9 | 255.9 | 239.6 | 257.1 | ||||||||||||||||||
| Total Fully Insured Products | 180.0 | 163.7 | 10.0 | 669.4 | 709.2 | 701.5 | ||||||||||||||||||
| ASO Products | 1.4 | 0.6 | 133.3 | 6.3 | 7.7 | 7.2 | ||||||||||||||||||
| Total Sales | $ | 181.4 | $ | 164.3 | 10.4 | $ | 675.7 | $ | 716.9 | $ | 708.7 | |||||||||||||
| Sales by Market Sector | ||||||||||||||||||||||||
| Group Disability, Group Life, and AD&D | ||||||||||||||||||||||||
| Core Market (< 2,000 lives) | $ | 52.4 | $ | 53.1 | (1.3 | )% | $ | 294.0 | $ | 320.6 | $ | 297.2 | ||||||||||||
| Large Case Market | 24.4 | 20.8 | 17.3 | 119.5 | 149.0 | 147.2 | ||||||||||||||||||
| Subtotal | 76.8 | 73.9 | 3.9 | 413.5 | 469.6 | 444.4 | ||||||||||||||||||
| Supplemental and Voluntary | 103.2 | 89.8 | 14.9 | 255.9 | 239.6 | 257.1 | ||||||||||||||||||
| Total Fully Insured Products | 180.0 | 163.7 | 10.0 | 669.4 | 709.2 | 701.5 | ||||||||||||||||||
| ASO Products | 1.4 | 0.6 | 133.3 | 6.3 | 7.7 | 7.2 | ||||||||||||||||||
| Total Sales | $ | 181.4 | $ | 164.3 | 10.4 | $ | 675.7 | $ | 716.9 | $ | 708.7 | |||||||||||||
3.1
| Unum Group Sales Data for Unum UK Segment | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| 3/31/2011 | 3/31/2010 | % Change | 12/31/2010 | 12/31/2009 | 12/31/2008 | |||||||||||||||||||
| Group Long-term Disability | $ | 8.2 | $ | 11.7 | (29.9 | )% | $ | 53.1 | $ | 56.8 | $ | 68.8 | ||||||||||||
| Group Life | 6.8 | 10.9 | (37.6 | ) | 57.3 | 53.8 | 19.6 | |||||||||||||||||
| Supplemental and Voluntary | 2.6 | 1.6 | 62.5 | 8.8 | 12.6 | 11.1 | ||||||||||||||||||
| Total Sales | $ | 17.6 | $ | 24.2 | (27.3 | ) | $ | 119.2 | $ | 123.2 | $ | 99.5 | ||||||||||||
| (in millions of pounds) | ||||||||||||||||||||||||
| Group Long-term Disability | £ | 5.1 | £ | 7.5 | (32.0 | )% | £ | 34.4 | £ | 36.5 | £ | 37.6 | ||||||||||||
| Group Life | 4.3 | 6.9 | (37.7 | ) | 37.1 | 33.4 | 10.9 | |||||||||||||||||
| Supplemental and Voluntary | 1.6 | 1.0 | 60.0 | 5.7 | 8.0 | 6.0 | ||||||||||||||||||
| Total Sales | £ | 11.0 | £ | 15.4 | (28.6 | ) | £ | 77.2 | £ | 77.9 | £ | 54.5 | ||||||||||||
| Unum Group Sales Data for Colonial Life Segment | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| 3/31/2011 | 3/31/2010 | % Change | 12/31/2010 | 12/31/2009 | 12/31/2008 | |||||||||||||||||||
| Accident, Sickness, and Disability | $ | 47.2 | $ | 48.7 | (3.1 | )% | $ | 237.4 | $ | 221.1 | $ | 222.1 | ||||||||||||
| Life | 13.3 | 14.3 | (7.0 | ) | 65.7 | 68.3 | 64.0 | |||||||||||||||||
| Cancer and Critical Illness | 10.1 | 10.3 | (1.9 | ) | 55.7 | 54.4 | 54.1 | |||||||||||||||||
| Total Sales | $ | 70.6 | $ | 73.3 | (3.7 | ) | $ | 358.8 | $ | 343.8 | $ | 340.2 | ||||||||||||
3.2
| Unum Group Consolidated Balance Sheets | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| Assets | ||||||||||||
| Investments | ||||||||||||
| Fixed Maturity Securities | $ | 40,315.1 | $ | 40,035.6 | $ | 37,914.4 | ||||||
| Mortgage Loans | 1,556.7 | 1,516.8 | 1,404.0 | |||||||||
| Policy Loans | 2,977.6 | 2,996.1 | 2,878.0 | |||||||||
| Other Long-term Investments | 540.1 | 529.3 | 233.5 | |||||||||
| Short-term Investments | 600.9 | 1,163.1 | 865.5 | |||||||||
| Total Investments | 45,990.4 | 46,240.9 | 43,295.4 | |||||||||
| Cash and Bank Deposits | 56.6 | 53.6 | 71.6 | |||||||||
| Accounts and Premiums Receivable | 1,673.8 | 1,665.8 | 1,732.4 | |||||||||
| Reinsurance Recoverable | 4,787.6 | 4,827.9 | 4,996.9 | |||||||||
| Accrued Investment Income | 730.7 | 669.8 | 642.5 | |||||||||
| Deferred Acquisition Costs | 2,542.9 | 2,521.1 | 2,482.5 | |||||||||
| Goodwill | 201.5 | 201.2 | 201.6 | |||||||||
| Property and Equipment | 482.7 | 476.8 | 443.5 | |||||||||
| Other Assets | 650.6 | 650.6 | 610.6 | |||||||||
| Total Assets | $ | 57,116.8 | $ | 57,307.7 | $ | 54,477.0 | ||||||
| Liabilities | ||||||||||||
| Policy and Contract Benefits | $ | 1,528.7 | $ | 1,565.0 | $ | 1,736.9 | ||||||
| Reserves for Future Policy and Contract Benefits | 39,685.2 | 39,715.0 | 37,740.8 | |||||||||
| Unearned Premiums | 474.4 | 436.7 | 452.0 | |||||||||
| Other Policyholders' Funds | 1,674.6 | 1,669.7 | 1,662.3 | |||||||||
| Income Tax Payable | 181.4 | 135.7 | 114.5 | |||||||||
| Deferred Income Tax | 471.2 | 417.2 | 273.2 | |||||||||
| Short-term Debt | - | 225.1 | - | |||||||||
| Long-term Debt - Non-recourse | 692.7 | 716.9 | 785.2 | |||||||||
| Long-term Debt - All Other | 1,912.3 | 1,914.4 | 1,764.4 | |||||||||
| Other Liabilities | 1,512.5 | 1,567.6 | 1,447.6 | |||||||||
| Total Liabilities | 48,133.0 | 48,363.3 | 45,976.9 | |||||||||
| Stockholders' Equity | ||||||||||||
| Common Stock | 35.8 | 36.5 | 36.4 | |||||||||
| Additional Paid-in Capital | 2,572.4 | 2,615.4 | 2,587.4 | |||||||||
| Accumulated Other Comprehensive Income (Loss) | ||||||||||||
| Net Unrealized Gain on Securities | 443.6 | 410.4 | 379.6 | |||||||||
| Net Gain on Cash Flow Hedges | 351.1 | 361.0 | 370.8 | |||||||||
| Foreign Currency Translation Adjustment | (84.1 | ) | (110.9 | ) | (78.7 | ) | ||||||
| Unrecognized Pension and Postretirement Benefit Costs | (313.5 | ) | (318.6 | ) | (330.7 | ) | ||||||
| Retained Earnings | 7,112.3 | 7,060.8 | 6,289.5 | |||||||||
| Treasury Stock | (1,133.8 | ) | (1,110.2 | ) | (754.2 | ) | ||||||
| Total Stockholders' Equity | 8,983.8 | 8,944.4 | 8,500.1 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 57,116.8 | $ | 57,307.7 | $ | 54,477.0 | ||||||
4
| Unum Group Deferred Acquisition Costs by Segment | ||||||||||||||||
| Unum US | Unum UK | Colonial Life | Consolidated | |||||||||||||
| Balances at December 31, 2008 | $ | 1,661.8 | $ | 54.7 | $ | 755.9 | $ | 2,472.4 | ||||||||
| Capitalized | 335.5 | 29.1 | 229.0 | 593.6 | ||||||||||||
| Amortized | (317.2 | ) | (30.5 | ) | (178.5 | ) | (526.2 | ) | ||||||||
| Adjustment Related to Unrealized Investment Gains/Losses | (17.7 | ) | - | (45.2 | ) | (62.9 | ) | |||||||||
| Foreign Currency | - | 5.6 | - | 5.6 | ||||||||||||
| Balances at December 31, 2009 | 1,662.4 | 58.9 | 761.2 | 2,482.5 | ||||||||||||
| Capitalized | 333.0 | 28.3 | 246.4 | 607.7 | ||||||||||||
| Amortized | (332.9 | ) | (27.0 | ) | (187.2 | ) | (547.1 | ) | ||||||||
| Adjustment Related to Unrealized Investment Gains/Losses | (4.6 | ) | - | (15.4 | ) | (20.0 | ) | |||||||||
| Foreign Currency | - | (2.0 | ) | - | (2.0 | ) | ||||||||||
| Balances at December 31, 2010 | 1,657.9 | 58.2 | 805.0 | 2,521.1 | ||||||||||||
| Capitalized | 88.1 | 6.7 | 63.5 | 158.3 | ||||||||||||
| Amortized | (83.3 | ) | (7.2 | ) | (47.8 | ) | (138.3 | ) | ||||||||
| Adjustment Related to Unrealized Investment Gains/Losses | 0.2 | - | - | 0.2 | ||||||||||||
| Foreign Currency | - | 1.6 | - | 1.6 | ||||||||||||
| Balances at March 31, 2011 | $ | 1,662.9 | $ | 59.3 | $ | 820.7 | $ | 2,542.9 | ||||||||
4.1
| Unum Group Balance Sheets by Segment - March 31, 2011 | ||||||||||||||||||||||||||||||||||||
| Unum US | ||||||||||||||||||||||||||||||||||||
| Group Life | ||||||||||||||||||||||||||||||||||||
| and Accidental | Supplemental | Individual | ||||||||||||||||||||||||||||||||||
| Group | Death & | and | Total | Colonial | Disability - | Corporate | ||||||||||||||||||||||||||||||
| Disability | Dismemberment | Voluntary | Unum US | Unum UK | Life | Closed Block | and Other | Consolidated | ||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||
| Investments | $ | 9,892.5 | $ | 2,379.8 | $ | 9,807.3 | $ | 22,079.6 | $ | 3,149.5 | $ | 2,072.2 | $ | 12,369.6 | $ | 6,319.5 | $ | 45,990.4 | ||||||||||||||||||
| Deferred Acquisition Costs | 119.1 | 96.1 | 1,447.7 | 1,662.9 | 59.3 | 820.7 | - | - | 2,542.9 | |||||||||||||||||||||||||||
| Goodwill | 2.5 | - | 187.5 | 190.0 | 11.5 | - | - | - | 201.5 | |||||||||||||||||||||||||||
| All Other | 742.3 | 147.3 | 192.4 | 1,082.0 | 261.9 | 230.0 | 3,043.3 | 3,764.8 | 8,382.0 | |||||||||||||||||||||||||||
| Total Assets | $ | 10,756.4 | $ | 2,623.2 | $ | 11,634.9 | $ | 25,014.5 | $ | 3,482.2 | $ | 3,122.9 | $ | 15,412.9 | $ | 10,084.3 | $ | 57,116.8 | ||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||
| Reserves and Policyholder Benefits | $ | 8,732.9 | $ | 1,640.2 | $ | 8,383.9 | $ | 18,757.0 | $ | 2,455.6 | $ | 1,690.5 | $ | 13,113.9 | $ | 7,345.9 | $ | 43,362.9 | ||||||||||||||||||
| Debt | 80.0 | - | - | 80.0 | - | - | 612.7 | 1,912.3 | 2,605.0 | |||||||||||||||||||||||||||
| All Other | 309.6 | 66.8 | 459.7 | 836.1 | 131.2 | 261.2 | 185.5 | 751.1 | 2,165.1 | |||||||||||||||||||||||||||
| Total Liabilities | 9,122.5 | 1,707.0 | 8,843.6 | 19,673.1 | 2,586.8 | 1,951.7 | 13,912.1 | 10,009.3 | 48,133.0 | |||||||||||||||||||||||||||
| Other Allocated Stockholders' Equity | 1,548.1 | 883.7 | 2,681.7 | 5,113.5 | 764.5 | 1,097.4 | 1,323.0 | (109.3 | ) | 8,189.1 | ||||||||||||||||||||||||||
| Net Unrealized Gain/Loss on Securities and | ||||||||||||||||||||||||||||||||||||
| Net Gain on Cash Flow Hedges | 85.8 | 32.5 | 109.6 | 227.9 | 130.9 | 73.8 | 177.8 | 184.3 | 794.7 | |||||||||||||||||||||||||||
| Total Allocated Stockholders' Equity | 1,633.9 | 916.2 | 2,791.3 | 5,341.4 | 895.4 | 1,171.2 | 1,500.8 | 75.0 | 8,983.8 | |||||||||||||||||||||||||||
| Total Liabilities and Allocated | ||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | $ | 10,756.4 | $ | 2,623.2 | $ | 11,634.9 | $ | 25,014.5 | $ | 3,482.2 | $ | 3,122.9 | $ | 15,412.9 | $ | 10,084.3 | $ | 57,116.8 | ||||||||||||||||||
| 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, 2010 | ||||||||||||||||||||||||||||||||||||
| Unum US | ||||||||||||||||||||||||||||||||||||
| Group Life | ||||||||||||||||||||||||||||||||||||
| and Accidental | Supplemental | Individual | ||||||||||||||||||||||||||||||||||
| Group | Death & | and | Total | Colonial | Disability - | Corporate | ||||||||||||||||||||||||||||||
| Disability | Dismemberment | Voluntary | Unum US | Unum UK | Life | Closed Block | and Other | Consolidated | ||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||
| Investments | $ | 9,965.9 | $ | 2,326.0 | $ | 9,694.1 | $ | 21,986.0 | $ | 3,042.0 | $ | 2,007.8 | $ | 12,470.0 | $ | 6,735.1 | $ | 46,240.9 | ||||||||||||||||||
| Deferred Acquisition Costs | 119.0 | 93.8 | 1,445.1 | 1,657.9 | 58.2 | 805.0 | - | - | 2,521.1 | |||||||||||||||||||||||||||
| Goodwill | 2.5 | - | 187.5 | 190.0 | 11.2 | - | - | - | 201.2 | |||||||||||||||||||||||||||
| All Other | 718.9 | 186.2 | 137.9 | 1,043.0 | 274.9 | 234.5 | 3,039.1 | 3,753.0 | 8,344.5 | |||||||||||||||||||||||||||
| Total Assets | $ | 10,806.3 | $ | 2,606.0 | $ | 11,464.6 | $ | 24,876.9 | $ | 3,386.3 | $ | 3,047.3 | $ | 15,509.1 | $ | 10,488.1 | $ | 57,307.7 | ||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||
| Reserves and Policyholder Benefits | $ | 8,793.9 | $ | 1,647.9 | $ | 8,326.6 | $ | 18,768.4 | $ | 2,391.2 | $ | 1,660.8 | $ | 13,168.5 | $ | 7,397.5 | $ | 43,386.4 | ||||||||||||||||||
| Debt | 82.5 | - | - | 82.5 | - | - | 634.4 | 2,139.5 | 2,856.4 | |||||||||||||||||||||||||||
| All Other | 302.9 | 53.5 | 451.2 | 807.6 | 109.4 | 242.1 | 200.3 | 761.1 | 2,120.5 | |||||||||||||||||||||||||||
| Total Liabilities | 9,179.3 | 1,701.4 | 8,777.8 | 19,658.5 | 2,500.6 | 1,902.9 | 14,003.2 | 10,298.1 | 48,363.3 | |||||||||||||||||||||||||||
| Other Allocated Stockholders' Equity | 1,535.8 | 867.0 | 2,624.2 | 5,027.0 | 757.7 | 1,071.0 | 1,310.2 | 7.1 | 8,173.0 | |||||||||||||||||||||||||||
| Net Unrealized Gain/Loss on Securities and | ||||||||||||||||||||||||||||||||||||
| Net Gain on Cash Flow Hedges | 91.2 | 37.6 | 62.6 | 191.4 | 128.0 | 73.4 | 195.7 | 182.9 | 771.4 | |||||||||||||||||||||||||||
| Total Allocated Stockholders' Equity | 1,627.0 | 904.6 | 2,686.8 | 5,218.4 | 885.7 | 1,144.4 | 1,505.9 | 190.0 | 8,944.4 | |||||||||||||||||||||||||||
| Total Liabilities and Allocated | ||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | $ | 10,806.3 | $ | 2,606.0 | $ | 11,464.6 | $ | 24,876.9 | $ | 3,386.3 | $ | 3,047.3 | $ | 15,509.1 | $ | 10,488.1 | $ | 57,307.7 | ||||||||||||||||||
| Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with the Company's target capital levels for regulatory and rating agency purposes. This formula is modified periodically to recognize changes in the views of capital requirements. | ||||||||||||||||||||||||||||||||||||
4.3
| Unum Group Financial Results by Segment | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| 3/31/2011 | 3/31/2010 | % Change | 12/31/2010 | 12/31/2009 | % Change | |||||||||||||||||||
| Premium Income | ||||||||||||||||||||||||
| Unum US | $ | 1,219.4 | $ | 1,216.1 | 0.3 | % | $ | 4,854.6 | $ | 4,873.1 | (0.4 | )% | ||||||||||||
| Unum UK | 167.1 | 165.8 | 0.8 | 650.6 | 686.1 | (5.2 | ) | |||||||||||||||||
| Colonial Life | 280.4 | 265.1 | 5.8 | 1,075.7 | 1,015.1 | 6.0 | ||||||||||||||||||
| Individual Disability - Closed Block | 202.3 | 214.0 | (5.5 | ) | 847.0 | 898.5 | (5.7 | ) | ||||||||||||||||
| Corporate and Other | 0.3 | 2.2 | (86.4 | ) | 3.5 | 2.7 | 29.6 | |||||||||||||||||
| 1,869.5 | 1,863.2 | 0.3 | 7,431.4 | 7,475.5 | (0.6 | ) | ||||||||||||||||||
| Net Investment Income | ||||||||||||||||||||||||
| Unum US | 321.6 | 304.6 | 5.6 | 1,263.8 | 1,200.5 | 5.3 | ||||||||||||||||||
| Unum UK | 44.9 | 39.8 | 12.8 | 170.5 | 124.5 | 36.9 | ||||||||||||||||||
| Colonial Life | 31.3 | 29.9 | 4.7 | 122.5 | 114.3 | 7.2 | ||||||||||||||||||
| Individual Disability - Closed Block | 182.0 | 190.7 | (4.6 | ) | 746.4 | 740.6 | 0.8 | |||||||||||||||||
| Corporate and Other | 38.9 | 48.0 | (19.0 | ) | 192.3 | 166.7 | 15.4 | |||||||||||||||||
| 618.7 | 613.0 | 0.9 | 2,495.5 | 2,346.6 | 6.3 | |||||||||||||||||||
| Other Income | ||||||||||||||||||||||||
| Unum US | 31.0 | 30.5 | 1.6 | 123.3 | 118.7 | 3.9 | ||||||||||||||||||
| Unum UK | 0.1 | 0.5 | (80.0 | ) | 1.2 | 2.4 | (50.0 | ) | ||||||||||||||||
| Colonial Life | 0.1 | 0.2 | (50.0 | ) | 0.7 | 0.5 | 40.0 | |||||||||||||||||
| Individual Disability - Closed Block | 22.6 | 21.5 | 5.1 | 90.7 | 100.8 | (10.0 | ) | |||||||||||||||||
| Corporate and Other | 5.9 | 7.1 | (16.9 | ) | 25.7 | 34.8 | (26.1 | ) | ||||||||||||||||
| 59.7 | 59.8 | (0.2 | ) | 241.6 | 257.2 | (6.1 | ) | |||||||||||||||||
| Total Operating Revenue | ||||||||||||||||||||||||
| Unum US | 1,572.0 | 1,551.2 | 1.3 | 6,241.7 | 6,192.3 | 0.8 | ||||||||||||||||||
| Unum UK | 212.1 | 206.1 | 2.9 | 822.3 | 813.0 | 1.1 | ||||||||||||||||||
| Colonial Life | 311.8 | 295.2 | 5.6 | 1,198.9 | 1,129.9 | 6.1 | ||||||||||||||||||
| Individual Disability - Closed Block | 406.9 | 426.2 | (4.5 | ) | 1,684.1 | 1,739.9 | (3.2 | ) | ||||||||||||||||
| Corporate and Other | 45.1 | 57.3 | (21.3 | ) | 221.5 | 204.2 | 8.5 | |||||||||||||||||
| 2,547.9 | 2,536.0 | 0.5 | 10,168.5 | 10,079.3 | 0.9 | |||||||||||||||||||
5
| Unum Group Financial Results by Segment | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| 3/31/2011 | 3/31/2010 | % Change | 12/31/2010 | 12/31/2009 | % Change | |||||||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||||||
| Unum US | $ | 1,362.9 | $ | 1,352.0 | 0.8 | % | $ | 5,415.7 | $ | 5,417.3 | - | % | ||||||||||||
| Unum UK | 163.4 | 145.5 | 12.3 | 613.5 | 563.4 | 8.9 | ||||||||||||||||||
| Colonial Life | 242.8 | 222.2 | 9.3 | 916.7 | 849.0 | 8.0 | ||||||||||||||||||
| Individual Disability - Closed Block | 397.0 | 414.5 | (4.2 | ) | 1,639.9 | 1,705.6 | (3.9 | ) | ||||||||||||||||
| Corporate and Other | 66.8 | 66.2 | 0.9 | 276.1 | 263.4 | 4.8 | ||||||||||||||||||
| 2,232.9 | 2,200.4 | 1.5 | 8,861.9 | 8,798.7 | 0.7 | |||||||||||||||||||
| Income (Loss) Before Income Taxes and | ||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) | ||||||||||||||||||||||||
| Unum US | 209.1 | 199.2 | 5.0 | 826.0 | 775.0 | 6.6 | ||||||||||||||||||
| Unum UK | 48.7 | 60.6 | (19.6 | ) | 208.8 | 249.6 | (16.3 | ) | ||||||||||||||||
| Colonial Life | 69.0 | 73.0 | (5.5 | ) | 282.2 | 280.9 | 0.5 | |||||||||||||||||
| Individual Disability - Closed Block | 9.9 | 11.7 | (15.4 | ) | 44.2 | 34.3 | 28.9 | |||||||||||||||||
| Corporate and Other | (21.7 | ) | (8.9 | ) | (143.8 | ) | (54.6 | ) | (59.2 | ) | 7.8 | |||||||||||||
| 315.0 | 335.6 | (6.1 | ) | 1,306.6 | 1,280.6 | 2.0 | ||||||||||||||||||
| Income Taxes | 99.3 | 122.3 | (18.8 | ) | 436.2 | 428.2 | 1.9 | |||||||||||||||||
| Income Before Net Realized Investment Gain (Loss) | 215.7 | 213.3 | 1.1 | 870.4 | 852.4 | 2.1 | ||||||||||||||||||
| Net Realized Investment Gain (Loss) | 15.2 | 25.6 | 40.6 | 24.7 | 11.7 | 111.1 | ||||||||||||||||||
| Tax Expense (Benefit) on Net Realized Investment | ||||||||||||||||||||||||
| Gain (Loss) | 5.5 | 9.1 | (39.6 | ) | 9.0 | 11.5 | (21.7 | ) | ||||||||||||||||
| Net Income | $ | 225.4 | $ | 229.8 | (1.9 | ) | $ | 886.1 | $ | 852.6 | 3.9 | |||||||||||||
5.1
| Unum Group Quarterly Historical Financial Results by Segment | ||||||||||||||||||||||||||||||||||||
| 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | 9/30/09 | 6/30/09 | 3/31/09 | ||||||||||||||||||||||||||||
| Premium Income | ||||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,219.4 | $ | 1,211.4 | $ | 1,210.6 | $ | 1,216.5 | $ | 1,216.1 | $ | 1,207.9 | $ | 1,215.2 | $ | 1,223.7 | $ | 1,226.3 | ||||||||||||||||||
| Unum UK | 167.1 | 170.5 | 161.4 | 152.9 | 165.8 | 180.0 | 169.7 | 173.4 | 163.0 | |||||||||||||||||||||||||||
| Colonial Life | 280.4 | 273.6 | 269.3 | 267.7 | 265.1 | 257.4 | 253.5 | 250.8 | 253.4 | |||||||||||||||||||||||||||
| Individual Disability - Closed Block | 202.3 | 212.0 | 208.5 | 212.5 | 214.0 | 219.4 | 221.5 | 228.0 | 229.6 | |||||||||||||||||||||||||||
| Corporate and Other | 0.3 | 0.7 | 0.4 | 0.2 | 2.2 | 1.0 | 1.2 | - | 0.5 | |||||||||||||||||||||||||||
| 1,869.5 | 1,868.2 | 1,850.2 | 1,849.8 | 1,863.2 | 1,865.7 | 1,861.1 | 1,875.9 | 1,872.8 | ||||||||||||||||||||||||||||
| Net Investment Income | ||||||||||||||||||||||||||||||||||||
| Unum US | 321.6 | 327.6 | 312.9 | 318.7 | 304.6 | 302.3 | 302.8 | 304.1 | 291.3 | |||||||||||||||||||||||||||
| Unum UK | 44.9 | 48.6 | 39.0 | 43.1 | 39.8 | 40.8 | 22.5 | 34.3 | 26.9 | |||||||||||||||||||||||||||
| Colonial Life | 31.3 | 31.4 | 31.9 | 29.3 | 29.9 | 28.9 | 29.4 | 28.4 | 27.6 | |||||||||||||||||||||||||||
| Individual Disability - Closed Block | 182.0 | 182.9 | 185.5 | 187.3 | 190.7 | 182.4 | 184.4 | 187.4 | 186.4 | |||||||||||||||||||||||||||
| Corporate and Other | 38.9 | 43.8 | 49.1 | 51.4 | 48.0 | 41.3 | 40.5 | 43.4 | 41.5 | |||||||||||||||||||||||||||
| 618.7 | 634.3 | 618.4 | 629.8 | 613.0 | 595.7 | 579.6 | 597.6 | 573.7 | ||||||||||||||||||||||||||||
| Other Income | ||||||||||||||||||||||||||||||||||||
| Unum US | 31.0 | 32.7 | 29.7 | 30.4 | 30.5 | 28.3 | 28.8 | 30.0 | 31.6 | |||||||||||||||||||||||||||
| Unum UK | 0.1 | 0.1 | 0.2 | 0.4 | 0.5 | 0.6 | 0.6 | 0.6 | 0.6 | |||||||||||||||||||||||||||
| Colonial Life | 0.1 | 0.2 | 0.2 | 0.1 | 0.2 | 0.1 | 0.1 | 0.2 | 0.1 | |||||||||||||||||||||||||||
| Individual Disability - Closed Block | 22.6 | 23.4 | 22.7 | 23.1 | 21.5 | 23.8 | 24.3 | 25.8 | 26.9 | |||||||||||||||||||||||||||
| Corporate and Other | 5.9 | 6.7 | 5.4 | 6.5 | 7.1 | 8.3 | 8.1 | 10.6 | 7.8 | |||||||||||||||||||||||||||
| 59.7 | 63.1 | 58.2 | 60.5 | 59.8 | 61.1 | 61.9 | 67.2 | 67.0 | ||||||||||||||||||||||||||||
| Total Operating Revenue | ||||||||||||||||||||||||||||||||||||
| Unum US | 1,572.0 | 1,571.7 | 1,553.2 | 1,565.6 | 1,551.2 | 1,538.5 | 1,546.8 | 1,557.8 | 1,549.2 | |||||||||||||||||||||||||||
| Unum UK | 212.1 | 219.2 | 200.6 | 196.4 | 206.1 | 221.4 | 192.8 | 208.3 | 190.5 | |||||||||||||||||||||||||||
| Colonial Life | 311.8 | 305.2 | 301.4 | 297.1 | 295.2 | 286.4 | 283.0 | 279.4 | 281.1 | |||||||||||||||||||||||||||
| Individual Disability - Closed Block | 406.9 | 418.3 | 416.7 | 422.9 | 426.2 | 425.6 | 430.2 | 441.2 | 442.9 | |||||||||||||||||||||||||||
| Corporate and Other | 45.1 | 51.2 | 54.9 | 58.1 | 57.3 | 50.6 | 49.8 | 54.0 | 49.8 | |||||||||||||||||||||||||||
| 2,547.9 | 2,565.6 | 2,526.8 | 2,540.1 | 2,536.0 | 2,522.5 | 2,502.6 | 2,540.7 | 2,513.5 | ||||||||||||||||||||||||||||
6
| Unum Group Quarterly Historical Financial Results by Segment | ||||||||||||||||||||||||||||||||||||
| 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | 9/30/09 | 6/30/09 | 3/31/09 | ||||||||||||||||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||||||||||||||||||
| Unum US | $ | 1,362.9 | $ | 1,365.6 | $ | 1,348.5 | $ | 1,349.6 | $ | 1,352.0 | $ | 1,335.5 | $ | 1,349.7 | $ | 1,366.5 | $ | 1,365.6 | ||||||||||||||||||
| Unum UK | 163.4 | 171.1 | 153.4 | 143.5 | 145.5 | 160.1 | 134.1 | 141.0 | 128.2 | |||||||||||||||||||||||||||
| Colonial Life | 242.8 | 244.4 | 226.9 | 223.2 | 222.2 | 218.1 | 212.6 | 208.1 | 210.2 | |||||||||||||||||||||||||||
| Individual Disability - Closed Block | 397.0 | 408.0 | 406.9 | 410.5 | 414.5 | 419.8 | 423.0 | 431.2 | 431.6 | |||||||||||||||||||||||||||
| Corporate and Other | 66.8 | 68.5 | 65.7 | 75.7 | 66.2 | 67.2 | 63.5 | 70.0 | 62.7 | |||||||||||||||||||||||||||
| 2,232.9 | 2,257.6 | 2,201.4 | 2,202.5 | 2,200.4 | 2,200.7 | 2,182.9 | 2,216.8 | 2,198.3 | ||||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes and | ||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) | ||||||||||||||||||||||||||||||||||||
| Unum US | 209.1 | 206.1 | 204.7 | 216.0 | 199.2 | 203.0 | 197.1 | 191.3 | 183.6 | |||||||||||||||||||||||||||
| Unum UK | 48.7 | 48.1 | 47.2 | 52.9 | 60.6 | 61.3 | 58.7 | 67.3 | 62.3 | |||||||||||||||||||||||||||
| Colonial Life | 69.0 | 60.8 | 74.5 | 73.9 | 73.0 | 68.3 | 70.4 | 71.3 | 70.9 | |||||||||||||||||||||||||||
| Individual Disability - Closed Block | 9.9 | 10.3 | 9.8 | 12.4 | 11.7 | 5.8 | 7.2 | 10.0 | 11.3 | |||||||||||||||||||||||||||
| Corporate and Other | (21.7 | ) | (17.3 | ) | (10.8 | ) | (17.6 | ) | (8.9 | ) | (16.6 | ) | (13.7 | ) | (16.0 | ) | (12.9 | ) | ||||||||||||||||||
| 315.0 | 308.0 | 325.4 | 337.6 | 335.6 | 321.8 | 319.7 | 323.9 | 315.2 | ||||||||||||||||||||||||||||
| Income Taxes | 99.3 | 99.4 | 105.5 | 109.0 | 122.3 | 103.5 | 108.1 | 108.1 | 108.5 | |||||||||||||||||||||||||||
| Income Before Net Realized | ||||||||||||||||||||||||||||||||||||
| Investment Gain (Loss) | 215.7 | 208.6 | 219.9 | 228.6 | 213.3 | 218.3 | 211.6 | 215.8 | 206.7 | |||||||||||||||||||||||||||
| Net Realized Investment Gain (Loss) | 15.2 | 27.5 | 1.1 | (29.5 | ) | 25.6 | (25.9 | ) | 14.9 | 87.3 | (64.6 | ) | ||||||||||||||||||||||||
| Tax Expense (Benefit) on Net Realized | ||||||||||||||||||||||||||||||||||||
| Investment Gain (Loss) | 5.5 | 10.3 | 0.2 | (10.6 | ) | 9.1 | (7.0 | ) | 5.4 | 35.9 | (22.8 | ) | ||||||||||||||||||||||||
| Net Income | $ | 225.4 | $ | 225.8 | $ | 220.8 | $ | 209.7 | $ | 229.8 | $ | 199.4 | $ | 221.1 | $ | 267.2 | $ | 164.9 | ||||||||||||||||||
| Net Income Per Common Share - | ||||||||||||||||||||||||||||||||||||
| Assuming Dilution | $ | 0.72 | $ | 0.71 | $ | 0.68 | $ | 0.63 | $ | 0.69 | $ | 0.60 | $ | 0.66 | $ | 0.80 | $ | 0.50 | ||||||||||||||||||
6.1
| Unum Group Financial Results for Unum US Segment | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | $ | 1,219.4 | $ | 1,216.1 | $ | 4,854.6 | $ | 4,873.1 | $ | 4,963.0 | ||||||||||
| Net Investment Income | 321.6 | 304.6 | 1,263.8 | 1,200.5 | 1,136.4 | |||||||||||||||
| Other Income | 31.0 | 30.5 | 123.3 | 118.7 | 132.7 | |||||||||||||||
| Total Operating Revenue | 1,572.0 | 1,551.2 | 6,241.7 | 6,192.3 | 6,232.1 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 960.7 | 952.6 | 3,849.4 | 3,855.9 | 3,998.4 | |||||||||||||||
| Commissions | 139.3 | 136.2 | 525.6 | 516.6 | 518.6 | |||||||||||||||
| Interest and Debt Expense | 0.3 | 0.3 | 1.2 | 2.0 | 4.2 | |||||||||||||||
| Deferral of Acquisition Costs | (88.1 | ) | (87.9 | ) | (333.0 | ) | (335.5 | ) | (329.7 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 83.3 | 86.6 | 332.9 | 317.2 | 320.3 | |||||||||||||||
| Other Expenses | 267.4 | 264.2 | 1,039.6 | 1,061.1 | 1,036.2 | |||||||||||||||
| Total Benefits and Expenses | 1,362.9 | 1,352.0 | 5,415.7 | 5,417.3 | 5,548.0 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | 209.1 | $ | 199.2 | $ | 826.0 | $ | 775.0 | $ | 684.1 | ||||||||||
| Operating Ratios | ||||||||||||||||||||
| Benefit Ratio | 78.8 | % | 78.3 | % | 79.3 | % | 79.1 | % | 80.6 | % | ||||||||||
| Other Expense Ratio | 21.9 | % | 21.7 | % | 21.4 | % | 21.8 | % | 20.9 | % | ||||||||||
| Before-tax Profit Margin | 17.1 | % | 16.4 | % | 17.0 | % | 15.9 | % | 13.8 | % | ||||||||||
7
| Unum Group Financial Results for Unum US Group Disability | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | ||||||||||||||||||||
| Group Long-term Disability | $ | 397.0 | $ | 415.6 | $ | 1,639.4 | $ | 1,726.9 | $ | 1,838.5 | ||||||||||
| Group Short-term Disability | 111.0 | 106.2 | 430.9 | 432.8 | 435.1 | |||||||||||||||
| Total Premium Income | 508.0 | 521.8 | 2,070.3 | 2,159.7 | 2,273.6 | |||||||||||||||
| Net Investment Income | 147.7 | 151.3 | 614.6 | 629.4 | 631.3 | |||||||||||||||
| Other Income | 22.2 | 21.7 | 86.7 | 88.9 | 100.2 | |||||||||||||||
| Total Operating Revenue | 677.9 | 694.8 | 2,771.6 | 2,878.0 | 3,005.1 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 426.3 | 439.3 | 1,747.8 | 1,862.8 | 2,043.9 | |||||||||||||||
| Commissions | 40.8 | 41.1 | 159.7 | 162.2 | 165.9 | |||||||||||||||
| Interest and Debt Expense | 0.3 | 0.3 | 1.2 | 2.0 | 4.2 | |||||||||||||||
| Deferral of Acquisition Costs | (15.2 | ) | (16.0 | ) | (59.0 | ) | (62.5 | ) | (59.4 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 15.1 | 16.4 | 63.5 | 67.3 | 76.7 | |||||||||||||||
| Other Expenses | 137.1 | 137.9 | 543.7 | 572.6 | 572.4 | |||||||||||||||
| Total Benefits and Expenses | 604.4 | 619.0 | 2,456.9 | 2,604.4 | 2,803.7 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | 73.5 | $ | 75.8 | $ | 314.7 | $ | 273.6 | $ | 201.4 | ||||||||||
| Operating Ratios | ||||||||||||||||||||
| Benefit Ratio | 83.9 | % | 84.2 | % | 84.4 | % | 86.3 | % | 89.9 | % | ||||||||||
| Other Expense Ratio | 27.0 | % | 26.4 | % | 26.3 | % | 26.5 | % | 25.2 | % | ||||||||||
| Before-tax Profit Margin | 14.5 | % | 14.5 | % | 15.2 | % | 12.7 | % | 8.9 | % | ||||||||||
| Premium Persistency: | ||||||||||||||||||||
| Group Long-term Disability | 89.7 | % | 90.0 | % | 89.4 | % | 86.9 | % | 87.8 | % | ||||||||||
| Group Short-term Disability | 90.7 | % | 89.4 | % | 88.6 | % | 86.8 | % | 82.1 | % | ||||||||||
| Case Persistency: | ||||||||||||||||||||
| Group Long-term Disability | 89.2 | % | 88.6 | % | 88.4 | % | 87.4 | % | 89.2 | % | ||||||||||
| Group Short-term Disability | 87.7 | % | 87.6 | % | 87.3 | % | 86.5 | % | 88.2 | % | ||||||||||
7.1
| Unum Group Financial Results for Unum US Group Life and Accidental Death and Dismemberment | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | ||||||||||||||||||||
| Group Life | $ | 273.4 | $ | 270.1 | $ | 1,090.3 | $ | 1,057.7 | $ | 1,062.8 | ||||||||||
| Accidental Death & Dismemberment | 27.1 | 26.0 | 106.1 | 104.9 | 127.6 | |||||||||||||||
| Total Premium Income | 300.5 | 296.1 | 1,196.4 | 1,162.6 | 1,190.4 | |||||||||||||||
| Net Investment Income | 34.2 | 31.8 | 129.6 | 126.5 | 126.0 | |||||||||||||||
| Other Income | 0.5 | 0.6 | 2.4 | 1.9 | 2.3 | |||||||||||||||
| Total Operating Revenue | 335.2 | 328.5 | 1,328.4 | 1,291.0 | 1,318.7 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 210.2 | 206.5 | 839.9 | 815.5 | 827.6 | |||||||||||||||
| Commissions | 23.5 | 22.3 | 89.3 | 85.4 | 85.4 | |||||||||||||||
| Deferral of Acquisition Costs | (13.1 | ) | (12.8 | ) | (49.3 | ) | (48.1 | ) | (40.3 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 10.8 | 12.0 | 43.3 | 45.9 | 55.0 | |||||||||||||||
| Other Expenses | 51.0 | 49.3 | 196.5 | 197.6 | 180.1 | |||||||||||||||
| Total Benefits and Expenses | 282.4 | 277.3 | 1,119.7 | 1,096.3 | 1,107.8 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | 52.8 | $ | 51.2 | $ | 208.7 | $ | 194.7 | $ | 210.9 | ||||||||||
| Operating Ratios | ||||||||||||||||||||
| Benefit Ratio | 70.0 | % | 69.7 | % | 70.2 | % | 70.1 | % | 69.5 | % | ||||||||||
| Other Expense Ratio | 17.0 | % | 16.6 | % | 16.4 | % | 17.0 | % | 15.1 | % | ||||||||||
| Before-tax Profit Margin | 17.6 | % | 17.3 | % | 17.4 | % | 16.7 | % | 17.7 | % | ||||||||||
| Premium Persistency: | ||||||||||||||||||||
| Group Life | 86.4 | % | 92.3 | % | 91.5 | % | 86.9 | % | 83.8 | % | ||||||||||
| Accidental Death & Dismemberment | 86.1 | % | 90.9 | % | 90.7 | % | 88.1 | % | 86.4 | % | ||||||||||
| Case Persistency: | ||||||||||||||||||||
| Group Life | 88.3 | % | 88.3 | % | 88.3 | % | 87.2 | % | 89.1 | % | ||||||||||
| Accidental Death & Dismemberment | 88.5 | % | 88.6 | % | 88.4 | % | 87.2 | % | 89.2 | % | ||||||||||
7.2
| Unum Group Financial Results for Unum US Supplemental and Voluntary | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | ||||||||||||||||||||
| Individual Disability - Recently Issued | $ | 115.1 | $ | 118.4 | $ | 457.9 | $ | 463.7 | $ | 471.5 | ||||||||||
| Long-term Care | 150.6 | 149.2 | 599.2 | 594.7 | 580.7 | |||||||||||||||
| Voluntary Benefits | 145.2 | 130.6 | 530.8 | 492.4 | 446.8 | |||||||||||||||
| Total Premium Income | 410.9 | 398.2 | 1,587.9 | 1,550.8 | 1,499.0 | |||||||||||||||
| Net Investment Income | 139.7 | 121.5 | 519.6 | 444.6 | 379.1 | |||||||||||||||
| Other Income | 8.3 | 8.2 | 34.2 | 27.9 | 30.2 | |||||||||||||||
| Total Operating Revenue | 558.9 | 527.9 | 2,141.7 | 2,023.3 | 1,908.3 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 324.2 | 306.8 | 1,261.7 | 1,177.6 | 1,126.9 | |||||||||||||||
| Commissions | 75.0 | 72.8 | 276.6 | 269.0 | 267.3 | |||||||||||||||
| Deferral of Acquisition Costs | (59.8 | ) | (59.1 | ) | (224.7 | ) | (224.9 | ) | (230.0 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 57.4 | 58.2 | 226.1 | 204.0 | 188.6 | |||||||||||||||
| Other Expenses | 79.3 | 77.0 | 299.4 | 290.9 | 283.7 | |||||||||||||||
| Total Benefits and Expenses | 476.1 | 455.7 | 1,839.1 | 1,716.6 | 1,636.5 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | 82.8 | $ | 72.2 | $ | 302.6 | $ | 306.7 | $ | 271.8 | ||||||||||
| Operating Ratios | ||||||||||||||||||||
| Benefit Ratios | ||||||||||||||||||||
| Individual Disability - Recently Issued | 52.2 | % | 50.5 | % | 53.3 | % | 51.4 | % | 53.3 | % | ||||||||||
| Long-term Care | 126.4 | % | 116.8 | % | 121.0 | % | 111.6 | % | 106.1 | % | ||||||||||
| Voluntary Benefits | 50.8 | % | 55.7 | % | 55.1 | % | 56.0 | % | 58.0 | % | ||||||||||
| Other Expense Ratio | 19.3 | % | 19.3 | % | 18.9 | % | 18.8 | % | 18.9 | % | ||||||||||
| Before-tax Profit Margin | 20.2 | % | 18.1 | % | 19.1 | % | 19.8 | % | 18.1 | % | ||||||||||
| Interest Adjusted Loss Ratios | ||||||||||||||||||||
| Individual Disability - Recently Issued | 30.9 | % | 30.7 | % | 32.5 | % | 32.5 | % | 35.9 | % | ||||||||||
| Long-term Care | 83.0 | % | 78.5 | % | 80.8 | % | 76.5 | % | 75.5 | % | ||||||||||
| Premium Persistency: | ||||||||||||||||||||
| Individual Disability - Recently Issued | 89.8 | % | 89.8 | % | 90.7 | % | 89.6 | % | 90.7 | % | ||||||||||
| Long-term Care | 95.6 | % | 95.4 | % | 95.8 | % | 95.1 | % | 95.5 | % | ||||||||||
| Voluntary Benefits | 79.5 | % | 80.0 | % | 80.1 | % | 79.9 | % | 80.4 | % | ||||||||||
7.3
| Unum Group Financial Results for Unum UK Segment | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | ||||||||||||||||||||
| Group Long-term Disability | $ | 103.4 | $ | 109.3 | $ | 421.2 | $ | 482.4 | $ | 656.3 | ||||||||||
| Group Life | 47.6 | 42.8 | 171.6 | 147.8 | 174.6 | |||||||||||||||
| Supplemental and Voluntary | 16.1 | 13.7 | 57.8 | 55.9 | 58.4 | |||||||||||||||
| Total Premium Income | 167.1 | 165.8 | 650.6 | 686.1 | 889.3 | |||||||||||||||
| Net Investment Income | 44.9 | 39.8 | 170.5 | 124.5 | 181.9 | |||||||||||||||
| Other Income | 0.1 | 0.5 | 1.2 | 2.4 | 2.0 | |||||||||||||||
| Total Operating Revenue | 212.1 | 206.1 | 822.3 | 813.0 | 1,073.2 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 115.8 | 104.6 | 435.8 | 373.6 | 511.4 | |||||||||||||||
| Commissions | 10.9 | 10.3 | 44.1 | 46.7 | 59.0 | |||||||||||||||
| Deferral of Acquisition Costs | (6.7 | ) | (6.6 | ) | (28.3 | ) | (29.1 | ) | (37.4 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 7.2 | 6.8 | 27.0 | 30.5 | 32.4 | |||||||||||||||
| Other Expenses | 36.2 | 30.4 | 134.9 | 141.7 | 183.8 | |||||||||||||||
| Total Benefits and Expenses | 163.4 | 145.5 | 613.5 | 563.4 | 749.2 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | 48.7 | $ | 60.6 | $ | 208.8 | $ | 249.6 | $ | 324.0 | ||||||||||
| Operating Ratios | ||||||||||||||||||||
| Benefit Ratio | 69.3 | % | 63.1 | % | 67.0 | % | 54.5 | % | 57.5 | % | ||||||||||
| Other Expense Ratio | 21.7 | % | 18.3 | % | 20.7 | % | 20.7 | % | 20.7 | % | ||||||||||
| Before-tax Profit Margin | 29.1 | % | 36.6 | % | 32.1 | % | 36.4 | % | 36.4 | % | ||||||||||
| Persistency: | ||||||||||||||||||||
| Group Long-term Disability | 83.5 | % | 90.5 | % | 91.3 | % | 88.5 | % | 87.4 | % | ||||||||||
| Group Life | 85.7 | % | 94.7 | % | 92.7 | % | 80.1 | % | 74.9 | % | ||||||||||
| Supplemental and Voluntary | 89.3 | % | 90.1 | % | 88.9 | % | 88.2 | % | 87.7 | % | ||||||||||
8
| Unum Group Financial Results for Unum UK Segment - Continued | ||||||||||||||||||||
| (in millions of pounds, except exchange rate) | Three Months Ended | Year Ended | ||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | ||||||||||||||||||||
| Group Long-term Disability | £ | 64.5 | £ | 70.0 | £ | 272.3 | £ | 309.0 | £ | 353.7 | ||||||||||
| Group Life | 29.7 | 27.4 | 110.9 | 94.1 | 93.3 | |||||||||||||||
| Supplemental and Voluntary | 10.0 | 8.7 | 37.4 | 35.6 | 31.6 | |||||||||||||||
| Total Premium Income | 104.2 | 106.1 | 420.6 | 438.7 | 478.6 | |||||||||||||||
| Net Investment Income | 28.0 | 25.4 | 110.2 | 79.6 | 98.5 | |||||||||||||||
| Other Income | 0.1 | 0.4 | 0.9 | 1.6 | 1.2 | |||||||||||||||
| Total Operating Revenue | 132.3 | 131.9 | 531.7 | 519.9 | 578.3 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 72.3 | 66.9 | 281.4 | 238.3 | 275.8 | |||||||||||||||
| Commissions | 6.8 | 6.6 | 28.5 | 29.8 | 31.9 | |||||||||||||||
| Deferral of Acquisition Costs | (4.2 | ) | (4.2 | ) | (18.3 | ) | (18.5 | ) | (20.1 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 4.5 | 4.3 | 17.4 | 19.5 | 17.9 | |||||||||||||||
| Other Expenses | 22.6 | 19.5 | 87.4 | 90.2 | 99.6 | |||||||||||||||
| Total Benefits and Expenses | 102.0 | 93.1 | 396.4 | 359.3 | 405.1 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | £ | 30.3 | £ | 38.8 | £ | 135.3 | £ | 160.6 | £ | 173.2 | ||||||||||
| Weighted Average Pound/Dollar Exchange Rate | 1.607 | 1.562 | 1.543 | 1.554 | 1.871 | |||||||||||||||
8.1
| Unum Group Financial Results for Colonial Life Segment | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | ||||||||||||||||||||
| Accident, Sickness, and Disability | $ | 172.3 | $ | 162.8 | $ | 661.0 | $ | 625.8 | $ | 606.9 | ||||||||||
| Life | 46.2 | 43.5 | 176.5 | 165.6 | 157.4 | |||||||||||||||
| Cancer and Critical Illness | 61.9 | 58.8 | 238.2 | 223.7 | 213.0 | |||||||||||||||
| Total Premium Income | 280.4 | 265.1 | 1,075.7 | 1,015.1 | 977.3 | |||||||||||||||
| Net Investment Income | 31.3 | 29.9 | 122.5 | 114.3 | 105.7 | |||||||||||||||
| Other Income | 0.1 | 0.2 | 0.7 | 0.5 | 0.4 | |||||||||||||||
| Total Operating Revenue | 311.8 | 295.2 | 1,198.9 | 1,129.9 | 1,083.4 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 144.1 | 124.8 | 534.7 | 480.6 | 464.0 | |||||||||||||||
| Commissions | 61.2 | 57.7 | 232.6 | 215.3 | 211.8 | |||||||||||||||
| Deferral of Acquisition Costs | (63.5 | ) | (60.4 | ) | (246.4 | ) | (229.0 | ) | (223.8 | ) | ||||||||||
| Amortization of Deferred Acquisition Costs | 47.8 | 47.8 | 187.2 | 178.5 | 166.4 | |||||||||||||||
| Other Expenses | 53.2 | 52.3 | 208.6 | 203.6 | 196.9 | |||||||||||||||
| Total Benefits and Expenses | 242.8 | 222.2 | 916.7 | 849.0 | 815.3 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | 69.0 | $ | 73.0 | $ | 282.2 | $ | 280.9 | $ | 268.1 | ||||||||||
| Operating Ratios | ||||||||||||||||||||
| Benefit Ratio | 51.4 | % | 47.1 | % | 49.7 | % | 47.3 | % | 47.5 | % | ||||||||||
| Other Expense Ratio | 19.0 | % | 19.7 | % | 19.4 | % | 20.1 | % | 20.1 | % | ||||||||||
| Before-tax Profit Margin | 24.6 | % | 27.5 | % | 26.2 | % | 27.7 | % | 27.4 | % | ||||||||||
| Persistency: | ||||||||||||||||||||
| Accident, Sickness, and Disability | 75.0 | % | 76.2 | % | 75.9 | % | 74.4 | % | 75.8 | % | ||||||||||
| Life | 86.0 | % | 85.0 | % | 86.0 | % | 84.7 | % | 84.7 | % | ||||||||||
| Cancer and Critical Illness | 84.6 | % | 84.6 | % | 84.9 | % | 83.8 | % | 84.0 | % | ||||||||||
9
| Unum Group Financial Results for Individual Disability - Closed Block Segment | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | $ | 202.3 | $ | 214.0 | $ | 847.0 | $ | 898.5 | $ | 952.3 | ||||||||||
| Net Investment Income | 182.0 | 190.7 | 746.4 | 740.6 | 767.5 | |||||||||||||||
| Other Income | 22.6 | 21.5 | 90.7 | 100.8 | 98.6 | |||||||||||||||
| Total Operating Revenue | 406.9 | 426.2 | 1,684.1 | 1,739.9 | 1,818.4 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 352.3 | 364.6 | 1,451.3 | 1,489.6 | 1,544.8 | |||||||||||||||
| Commissions | 12.6 | 13.7 | 52.0 | 58.1 | 62.7 | |||||||||||||||
| Interest and Debt Expense | 2.7 | 2.8 | 11.7 | 16.6 | 35.1 | |||||||||||||||
| Other Expenses | 29.4 | 33.4 | 124.9 | 141.3 | 148.1 | |||||||||||||||
| Total Benefits and Expenses | 397.0 | 414.5 | 1,639.9 | 1,705.6 | 1,790.7 | |||||||||||||||
| Operating Income Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | 9.9 | $ | 11.7 | $ | 44.2 | $ | 34.3 | $ | 27.7 | ||||||||||
| Operating Ratios | ||||||||||||||||||||
| Interest Adjusted Loss Ratio | 84.7 | % | 84.5 | % | 85.0 | % | 81.6 | % | 82.2 | % | ||||||||||
| Other Expense Ratio | 14.5 | % | 15.6 | % | 14.7 | % | 15.7 | % | 15.6 | % | ||||||||||
| Before-tax Profit Margin | 4.9 | % | 5.5 | % | 5.2 | % | 3.8 | % | 2.9 | % | ||||||||||
| Premium Persistency | 92.8 | % | 93.3 | % | 93.0 | % | 93.2 | % | 93.8 | % | ||||||||||
10
| Unum Group Financial Results for Corporate and Other Segment | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 3/31/2011 | 3/31/2010 | 12/31/2010 | 12/31/2009 | 12/31/2008 | ||||||||||||||||
| Operating Revenue | ||||||||||||||||||||
| Premium Income | $ | 0.3 | $ | 2.2 | $ | 3.5 | $ | 2.7 | $ | 1.4 | ||||||||||
| Net Investment Income | 38.9 | 48.0 | 192.3 | 166.7 | 197.5 | |||||||||||||||
| Other Income | 5.9 | 7.1 | 25.7 | 34.8 | 42.2 | |||||||||||||||
| Total Operating Revenue | 45.1 | 57.3 | 221.5 | 204.2 | 241.1 | |||||||||||||||
| Benefits and Expenses | ||||||||||||||||||||
| Benefits and Change in Reserves for Future Benefits | 20.1 | 22.3 | 82.9 | 91.9 | 107.8 | |||||||||||||||
| Commissions | 0.3 | 0.4 | 1.1 | 0.4 | 1.2 | |||||||||||||||
| Interest and Debt Expense | 34.9 | 30.3 | 128.9 | 106.8 | 117.4 | |||||||||||||||
| Other Expenses | 11.5 | 13.2 | 63.2 | 64.3 | 28.7 | |||||||||||||||
| Total Benefits and Expenses | 66.8 | 66.2 | 276.1 | 263.4 | 255.1 | |||||||||||||||
| Operating Loss Before Income Taxes and | ||||||||||||||||||||
| Net Realized Investment Gains and Losses | $ | (21.7 | ) | $ | (8.9 | ) | $ | (54.6 | ) | $ | (59.2 | ) | $ | (14.0 | ) | |||||
11
| Unum Group Reserves | ||||||||||||||||||||||||||||||||
| March 31, 2011 | ||||||||||||||||||||||||||||||||
| Gross | Total | |||||||||||||||||||||||||||||||
| Policy | Claim Reserves | Reinsurance | Total | |||||||||||||||||||||||||||||
| Reserves | % | Incurred | IBNR | % | Total | Ceded | Net | |||||||||||||||||||||||||
| Group Disability | $ | - | - | % | $ | 7,402.3 | $ | 604.4 | 32.9 | % | $ | 8,006.7 | $ | 67.1 | $ | 7,939.6 | ||||||||||||||||
| Group Life and Accidental Death & Dismemberment | 71.8 | 0.5 | 763.3 | 149.5 | 3.7 | 984.6 | 2.6 | 982.0 | ||||||||||||||||||||||||
| Individual Disability - Recently Issued | 537.4 | 3.9 | 1,021.4 | 98.9 | 4.6 | 1,657.7 | 88.5 | 1,569.2 | ||||||||||||||||||||||||
| Long-term Care | 3,992.1 | 28.6 | 404.9 | 39.3 | 1.8 | 4,436.3 | 48.8 | 4,387.5 | ||||||||||||||||||||||||
| Voluntary Benefits | 1,077.6 | 7.7 | 24.0 | 59.8 | 0.4 | 1,161.4 | 25.2 | 1,136.2 | ||||||||||||||||||||||||
| Unum US Segment | 5,678.9 | 40.7 | 9,615.9 | 951.9 | 43.4 | 16,246.7 | 232.2 | 16,014.5 | ||||||||||||||||||||||||
| Unum UK Segment | 27.1 | 0.2 | 2,107.5 | 148.5 | 9.3 | 2,283.1 | 108.1 | 2,175.0 | ||||||||||||||||||||||||
| Colonial Life Segment | 1,336.6 | 9.6 | 235.4 | 81.6 | 1.3 | 1,653.6 | 15.8 | 1,637.8 | ||||||||||||||||||||||||
| Individual Disability - Closed Block Segment | 1,214.3 | 8.7 | 10,349.0 | 304.5 | 43.8 | 11,867.8 | 1,471.0 | 10,396.8 | ||||||||||||||||||||||||
| Corporate and Other Segment | 5,695.9 | 40.8 | 336.5 | 196.7 | 2.2 | 6,229.1 | 4,836.5 | 1,392.6 | ||||||||||||||||||||||||
| Subtotal, Excluding Unrealized Adjustment | $ | 13,952.8 | 100.0 | % | $ | 22,644.3 | $ | 1,683.2 | 100.0 | % | 38,280.3 | 6,663.6 | 31,616.7 | |||||||||||||||||||
| Unrealized Adjustment to Reserves for | ||||||||||||||||||||||||||||||||
| Unrealized Gain on Securities | 2,933.6 | 157.1 | 2,776.5 | |||||||||||||||||||||||||||||
| Consolidated | $ | 41,213.9 | $ | 6,820.7 | $ | 34,393.2 | ||||||||||||||||||||||||||
12
| Unum Group Reserves | ||||||||||||||||||||||||||||||||
| December 31, 2010 | ||||||||||||||||||||||||||||||||
| Gross | Total | |||||||||||||||||||||||||||||||
| Policy | Claim Reserves | Reinsurance | Total | |||||||||||||||||||||||||||||
| Reserves | % | Incurred | IBNR | % | Total | Ceded | Net | |||||||||||||||||||||||||
| Group Disability | $ | - | - | % | $ | 7,480.2 | $ | 590.2 | 33.2 | % | $ | 8,070.4 | $ | 69.4 | $ | 8,001.0 | ||||||||||||||||
| Group Life and Accidental Death & Dismemberment | 72.9 | 0.5 | 783.7 | 152.8 | 3.8 | 1,009.4 | 1.5 | 1,007.9 | ||||||||||||||||||||||||
| Individual Disability - Recently Issued | 534.5 | 3.9 | 1,005.1 | 99.9 | 4.5 | 1,639.5 | 88.3 | 1,551.2 | ||||||||||||||||||||||||
| Long-term Care | 3,867.1 | 27.9 | 391.6 | 38.5 | 1.8 | 4,297.2 | 47.8 | 4,249.4 | ||||||||||||||||||||||||
| Voluntary Benefits | 1,060.3 | 7.7 | 24.1 | 59.0 | 0.4 | 1,143.4 | 24.8 | 1,118.6 | ||||||||||||||||||||||||
| Unum US Segment | 5,534.8 | 40.0 | 9,684.7 | 940.4 | 43.7 | 16,159.9 | 231.8 | 15,928.1 | ||||||||||||||||||||||||
| Unum UK Segment | 26.6 | 0.2 | 2,057.6 | 142.7 | 9.0 | 2,226.9 | 105.6 | 2,121.3 | ||||||||||||||||||||||||
| Colonial Life Segment | 1,318.0 | 9.5 | 228.9 | 78.6 | 1.3 | 1,625.5 | 17.8 | 1,607.7 | ||||||||||||||||||||||||
| Individual Disability - Closed Block Segment | 1,249.1 | 9.0 | 10,335.3 | 309.6 | 43.7 | 11,894.0 | 1,457.4 | 10,436.6 | ||||||||||||||||||||||||
| Corporate and Other Segment | 5,703.8 | 41.3 | 364.7 | 196.9 | 2.3 | 6,265.4 | 4,860.1 | 1,405.3 | ||||||||||||||||||||||||
| Subtotal, Excluding Unrealized Adjustment | $ | 13,832.3 | 100.0 | % | $ | 22,671.2 | $ | 1,668.2 | 100.0 | % | 38,171.7 | 6,672.7 | 31,499.0 | |||||||||||||||||||
| Unrealized Adjustment to Reserves for | ||||||||||||||||||||||||||||||||
| Unrealized Gain on Securities | 3,108.3 | 159.0 | 2,949.3 | |||||||||||||||||||||||||||||
| Consolidated | $ | 41,280.0 | $ | 6,831.7 | $ | 34,448.3 | ||||||||||||||||||||||||||
12.1
| Unum Group Investment Fact Sheet at March 31, 2011 | |||||||||||||||||||
| Fixed Maturity Securities (Fair Value) | 3/31/2011 | Selected Statistics | 3/31/11 | 12/31/10 | |||||||||||||||
| Public | $ | 25,912.1 | 64.3 | % | Duration Weighted Book Yield | 6.69 | % | 6.72 | % | ||||||||||
| Asset-Backed Securities (1) | 308.9 | 0.8 | Average Duration (in years) | 7.52 | 7.55 | ||||||||||||||
| Residential Mortgage-Backed Securities (2) | 3,039.9 | 7.5 | Average Credit Quality | A | A | ||||||||||||||
| Private Placements | 4,321.2 | 10.7 | |||||||||||||||||
| High Yield | 2,866.5 | 7.1 | |||||||||||||||||
| Government Securities | 2,542.0 | 6.4 | |||||||||||||||||
| Municipal Securities | 1,267.6 | 3.1 | |||||||||||||||||
| Redeemable Preferred Stocks (3) | 56.9 | 0.1 | |||||||||||||||||
| Total | $ | 40,315.1 | 100.0 | % | |||||||||||||||
| Quality Ratings of Fixed Maturity Securities | Amortized Cost | Fair Value | Schedule BA and Non-Current | ||||||||||||||||
| Aaa | 14.1 | % | 14.2 | % | Total Non-Current Investments | $ | 59.9 | $ | 56.2 | ||||||||||
| Aa | 9.9 | 9.8 | Total Schedule BA Assets | $ | 397.3 | $ | 379.3 | ||||||||||||
| A | 28.5 | 28.9 | |||||||||||||||||
| Baa | 40.0 | 40.0 | |||||||||||||||||
| Below Baa | 7.5 | 7.1 | |||||||||||||||||
| Total | 100.0 | % | 100.0 | % | |||||||||||||||
| (1) Includes $0.7 million of high yield asset-backed securities. | |||||||||||||||||||
| (2) Includes $0.1 million of high yield mortgage-backed securities. | |||||||||||||||||||
| (3) Includes $7.2 million of high yield preferred stock. | |||||||||||||||||||
13
| Unum Group Investment Fact Sheet at March 31, 2011 | ||||||||||||||||||||||||
| 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 | $ | 2,175.3 | $ | 152.7 | $ | 281.4 | $ | 11.1 | $ | 1,893.9 | $ | 163.8 | ||||||||||||
| Capital Goods | 3,491.9 | 328.1 | 336.9 | 11.1 | 3,155.0 | 339.2 | ||||||||||||||||||
| Communications | 2,728.0 | 291.8 | 294.1 | 10.3 | 2,433.9 | 302.1 | ||||||||||||||||||
| Consumer Cyclical | 1,298.2 | 72.5 | 298.2 | 22.3 | 1,000.0 | 94.8 | ||||||||||||||||||
| Consumer Non-Cyclical | 5,063.8 | 466.6 | 323.8 | 19.2 | 4,740.0 | 485.8 | ||||||||||||||||||
| Energy (Oil & Gas) | 3,303.3 | 396.9 | 129.9 | 1.7 | 3,173.4 | 398.6 | ||||||||||||||||||
| Financial Institutions | 3,473.6 | 126.4 | 870.1 | 31.0 | 2,603.5 | 157.4 | ||||||||||||||||||
| Mortgage/Asset-Backed | 3,348.8 | 310.5 | 27.3 | 0.9 | 3,321.5 | 311.4 | ||||||||||||||||||
| Sovereigns | 1,439.0 | 151.6 | - | - | 1,439.0 | 151.6 | ||||||||||||||||||
| Technology | 788.1 | 92.7 | 28.5 | 0.2 | 759.6 | 92.9 | ||||||||||||||||||
| Transportation | 1,040.1 | 119.9 | 59.2 | 2.2 | 980.9 | 122.1 | ||||||||||||||||||
| U.S. Government Agencies | ||||||||||||||||||||||||
| and Municipalities | 2,370.6 | 89.4 | 811.8 | 60.7 | 1,558.8 | 150.1 | ||||||||||||||||||
| Utilities | 9,737.5 | 745.8 | 1,178.4 | 46.6 | 8,559.1 | 792.4 | ||||||||||||||||||
| Redeemable Preferred Stocks | 56.9 | 1.1 | 30.0 | 0.8 | 26.9 | 1.9 | ||||||||||||||||||
| Total | $ | 40,315.1 | $ | 3,346.0 | $ | 4,669.6 | $ | 218.1 | $ | 35,645.5 | $ | 3,564.1 | ||||||||||||
| Fixed Maturity Securities - Financial Institutions Classification - Unrealized Gain (Loss) | ||||||||||||||||||||||||
| Associations | $ | 13.1 | $ | 1.0 | $ | - | $ | - | $ | 13.1 | $ | 1.0 | ||||||||||||
| Banking | 2,056.4 | 56.6 | 541.4 | 24.6 | 1,515.0 | 81.2 | ||||||||||||||||||
| Brokerage | 155.5 | 9.9 | 10.6 | 0.8 | 144.9 | 10.7 | ||||||||||||||||||
| Finance Non-Captive | 34.7 | 0.7 | - | - | 34.7 | 0.7 | ||||||||||||||||||
| Finance Captive | 201.1 | 5.3 | 19.7 | 1.1 | 181.4 | 6.4 | ||||||||||||||||||
| Insurance | 739.1 | 47.6 | 207.4 | 2.6 | 531.7 | 50.2 | ||||||||||||||||||
| Other Financial Institutions | 76.6 | 1.1 | 40.5 | 0.9 | 36.1 | 2.0 | ||||||||||||||||||
| Real Estate Management Services | 197.1 | 4.2 | 50.5 | 1.0 | 146.6 | 5.2 | ||||||||||||||||||
| Total | $ | 3,473.6 | $ | 126.4 | $ | 870.1 | $ | 31.0 | $ | 2,603.5 | $ | 157.4 | ||||||||||||
| 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 | $ | 1,023.0 | $ | 14.8 | $ | 77.0 | $ | 5.2 | ||||||||||||||||
| 91 through 180 days | 2,031.5 | 82.4 | 151.4 | 4.0 | ||||||||||||||||||||
| 181 through 270 days | 131.7 | 14.5 | 7.9 | 0.1 | ||||||||||||||||||||
| 271 days to 1 year | 22.0 | 1.6 | 42.5 | 3.1 | ||||||||||||||||||||
| Greater than 1 year | 773.6 | 63.6 | 409.0 | 28.8 | ||||||||||||||||||||
| Total | $ | 3,981.8 | $ | 176.9 | $ | 687.8 | $ | 41.2 | ||||||||||||||||
13.1
| Unum Group Investment Fact Sheet at March 31, 2011 | |||||||||||||||||||
| Asset and Mortgage-Backed Securities Portfolio | |||||||||||||||||||
Amortized Cost | Fair Value | % of Total Fixed Maturity Securities | Average Rating | ||||||||||||||||
| Asset-Backed Securities | |||||||||||||||||||
| Credit Cards | $ | 287.2 | $ | 288.8 | 8.6 | % | 0.8 | % | AAA | ||||||||||
| Rate Reduction Bonds | 19.0 | 19.5 | 0.6 | - | AAA | ||||||||||||||
| Home Equity | 1.0 | 0.6 | - | - | B | ||||||||||||||
| Collateralized Debt Obligations | - | - | - | - | - | ||||||||||||||
| Total | 307.2 | 308.9 | 9.2 | 0.8 | AAA | ||||||||||||||
| Residential Mortgage-Backed Securities | |||||||||||||||||||
| Agency CMOs | 2,510.8 | 2,813.3 | 84.0 | 7.0 | AAA | ||||||||||||||
| Agency Pass-throughs | 159.2 | 163.8 | 4.9 | 0.4 | AAA | ||||||||||||||
| Non-agency CMOs - Prime | 61.1 | 62.8 | 1.9 | 0.1 | Aa2 | ||||||||||||||
| Alt-A | - | - | - | - | - | ||||||||||||||
| Subprime | - | - | - | - | - | ||||||||||||||
| Collateralized Debt Obligations | - | - | - | - | - | ||||||||||||||
| Total | 2,731.1 | 3,039.9 | 90.8 | 7.5 | AAA | ||||||||||||||
| Commercial Mortgage-Backed Securities | - | - | - | - | - | ||||||||||||||
| Total | $ | 3,038.3 | $ | 3,348.8 | 100.0 | % | 8.3 | % | AAA | ||||||||||
13.2
| Unum Group Statutory Capital and Surplus | ||||||||||||||||
| As of | ||||||||||||||||
| As of March 31, 2011 | December 31, 2010 | |||||||||||||||
| Capital and | Capital and | Capital and | ||||||||||||||
| Surplus | AVR | Surplus + AVR | Surplus + AVR | |||||||||||||
| Traditional U.S. Life Insurance Companies | ||||||||||||||||
| Provident Life and Accident | $ | 664.1 | $ | 79.3 | $ | 743.4 | $ | 732.0 | ||||||||
| Unum Life of America | 1,498.2 | 211.0 | 1,709.2 | 1,741.1 | ||||||||||||
| Paul Revere Life (1) | 423.5 | 38.4 | 461.9 | 451.6 | ||||||||||||
| Colonial Life & Accident | 490.8 | 23.5 | 514.3 | 514.2 | ||||||||||||
| Provident Life and Casualty | 146.3 | 7.3 | 153.6 | 149.5 | ||||||||||||
| First Unum Life | 251.4 | 9.6 | 261.0 | 248.2 | ||||||||||||
| Paul Revere Variable (1) | 35.6 | 0.5 | 36.1 | 35.6 | ||||||||||||
(1) Capital and Surplus of Paul Revere Variable is included in Paul Revere Life | ||||||||||||||||
| Special Purpose Reinsurance Vehicles | ||||||||||||||||
| Tailwind Reinsurance Company | $ | 76.5 | $ | 0.1 | $ | 76.6 | $ | 81.5 | ||||||||
| Northwind Reinsurance Company | 1,202.5 | 3.3 | 1,205.8 | 1,198.6 | ||||||||||||
| UnumProvident International Ltd. | 533.8 | - | 533.8 | 530.4 | ||||||||||||
14
| Unum Group Statutory Operating Results | ||||||||||||||||||||||||
| Three Months Ended March 31 | ||||||||||||||||||||||||
| Net Gain (Loss) from | Net Realized Investment Gains (Losses) | |||||||||||||||||||||||
| Operations After Tax | After Tax and Transfers to IMR | Net Income (Loss) | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| Traditional U.S. Life Insurance Companies | ||||||||||||||||||||||||
| Provident Life and Accident | $ | 52.3 | $ | 46.8 | $ | (2.7 | ) | $ | (1.7 | ) | $ | 49.6 | $ | 45.1 | ||||||||||
| Unum Life of America | 43.3 | 51.7 | (8.8 | ) | (6.9 | ) | 34.5 | 44.8 | ||||||||||||||||
| Paul Revere Life | 12.2 | 14.9 | 8.2 | (0.6 | ) | 20.4 | 14.3 | |||||||||||||||||
| Colonial Life & Accident | 25.7 | 30.6 | (0.3 | ) | - | 25.4 | 30.6 | |||||||||||||||||
| Provident Life and Casualty | 4.0 | 2.2 | - | - | 4.0 | 2.2 | ||||||||||||||||||
| First Unum Life | 11.9 | 8.0 | 0.1 | 0.1 | 12.0 | 8.1 | ||||||||||||||||||
| Paul Revere Variable | 0.7 | 0.6 | 0.1 | - | 0.8 | 0.6 | ||||||||||||||||||
| Total, as reported | 150.1 | 154.8 | (3.4 | ) | (9.1 | ) | 146.7 | 145.7 | ||||||||||||||||
| Intercompany Dividends | (4.9 | ) | - | - | - | (4.9 | ) | - | ||||||||||||||||
| Total, as adjusted | $ | 145.2 | $ | 154.8 | $ | (3.4 | ) | $ | (9.1 | ) | $ | 141.8 | $ | 145.7 | ||||||||||
| Special Purpose Reinsurance Vehicles | ||||||||||||||||||||||||
| Tailwind Reinsurance Company | $ | 3.2 | $ | (0.5 | ) | $ | - | $ | - | $ | 3.2 | $ | (0.5 | ) | ||||||||||
| Northwind Reinsurance Company | 31.6 | 23.6 | - | - | 31.6 | 23.6 | ||||||||||||||||||
| UnumProvident International Ltd. | 1.7 | (4.6 | ) | 1.8 | 1.7 | 3.5 | (2.9 | ) | ||||||||||||||||
| Total | $ | 36.5 | $ | 18.5 | $ | 1.8 | $ | 1.7 | $ | 38.3 | $ | 20.2 | ||||||||||||
| Note: Statutory results for our domestic insurers are reported in conformity with statutory accounting principles as prescribed by the National Association of Insurance Commissioners and adopted by the applicable state laws. For UnumProvident International Ltd., results are reported in conformity with accounting principles as prescribed by applicable Bermuda laws. | ||||||||||||||||||||||||
14.1
| Unum Life Insurance Company of America - Statutory Basis | ||||||||||||
| Group Accident and Health Statutory Claim Reserves and Liabilities, Net of Ceded | ||||||||||||
| On Claims Incurred Prior to January 1 | ||||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| Reserve Balance from Prior Year End | $ | 6,829.4 | $ | 6,880.9 | $ | 6,982.6 | ||||||
| Other Adjustments to Beginning Balance (see Schedule H) | - | (4.5 | ) | (5.2 | ) | |||||||
| Reserve Balance January 1 (a) | 6,829.4 | 6,876.4 | 6,977.4 | |||||||||
| Paid on Prior Year Claims | (390.5 | ) | (374.3 | ) | (386.4 | ) | ||||||
| Interest Earned on Reserves | 110.7 | 113.0 | 113.0 | |||||||||
| Incurred on Prior Year Claims | (122.3 | ) | (113.1 | ) | (103.0 | ) | ||||||
| Reserve Balance March 31 | $ | 6,427.3 | $ | 6,502.0 | $ | 6,601.0 | ||||||
| Reserve Balance March 31 | $ | 6,502.0 | $ | 6,601.0 | ||||||||
| Paid on Prior Year Claims | (324.2 | ) | (335.6 | ) | ||||||||
| Interest Earned on Reserves | 108.2 | 108.3 | ||||||||||
| Incurred on Prior Year Claims | (117.5 | ) | (104.3 | ) | ||||||||
| Reserve Balance June 30 | $ | 6,168.5 | $ | 6,269.4 | ||||||||
| Reserve Balance June 30 | $ | 6,168.5 | $ | 6,269.4 | ||||||||
| Paid on Prior Year Claims | (304.0 | ) | (307.6 | ) | ||||||||
| Interest Earned on Reserves | 103.1 | 103.9 | ||||||||||
| Incurred on Prior Year Claims | (75.1 | ) | (69.2 | ) | ||||||||
| Reserve Balance September 30 | $ | 5,892.5 | $ | 5,996.5 | ||||||||
| Reserve Balance September 30 | $ | 5,892.5 | $ | 5,996.5 | ||||||||
| Paid on Prior Year Claims | (282.9 | ) | (271.6 | ) | ||||||||
| Interest Earned on Reserves | 99.0 | 101.9 | ||||||||||
| Incurred on Prior Year Claims | (76.9 | ) | (83.7 | ) | ||||||||
| Reserve Balance December 31 on Prior Year Claims | 5,631.7 | 5,743.1 | ||||||||||
| Reserve Balance December 31 on Current Year Claims | 1,197.7 | 1,137.8 | ||||||||||
| Reserve Balance December 31 on Total Claims Incurred (b) | $ | 6,829.4 | $ | 6,880.9 | ||||||||
| (a) balances to Schedule H Part 3 Line 3.2 Column 2 | ||||||||||||
| (b) balances to Schedule H Part 2 Line C.1 Column 2 | ||||||||||||
14.2
| Reconciliation to Unum Life Insurance Company of America - Statutory Basis | ||||||||||||
| Schedule H Part 3 for Group Accident and Health | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| Paid on Prior Year Existing Claims - Full Year | $ | 1,285.4 | $ | 1,301.2 | $ | 1,347.1 | ||||||
| (balances to Schedule H Part 3 Line 1.1 Column 2) | ||||||||||||
| Incurred on Prior Year Claims - Full Year | $ | (382.6 | ) | $ | (360.2 | ) | $ | (230.8 | ) | |||
| Interest Earned on Reserves - Full Year | 423.3 | 427.1 | 418.5 | |||||||||
| Incurred on Prior Year Claims - Full Year, Excluding Interest Earned | $ | 40.7 | $ | 66.9 | $ | 187.7 | ||||||
| (balances to Schedule H Part 3 Line 3.3 Column 2) | ||||||||||||
| Note: Group A&H for Unum Life Insurance Company of America includes group long- and short-term disability, group accidental death & dismemberment, and group voluntary disability, cancer, and critical illness products reported in our Unum US segment as well as the reinsurance pools reported in our Corporate and Other segment. | ||||||||||||
14.3
Notes to Statistical Supplement
Non-GAAP Financial Measures
We analyze our Company’s performance using non-GAAP financial measures which exclude certain items and the related tax thereon from net income. We believe operating income or loss excluding realized investment gains and losses, which are recurring, is a better performance measure and a better indicator of the profitability and underlying trends in our business. Realized investment gains and losses are dependent on market conditions and general economic events and are not necessarily related to decisions regarding our Company’s underlying business. We believe book value per common share excluding the components of Accumulated Other Comprehensive Income, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures.
2011 Significant Transactions and Events
Share Repurchase Program
On February 2, 2011, our board of directors authorized the repurchase of up to $1.0 billion of Unum Group’s common stock, in addition to the amount remaining to be repurchased under the May 2010 $500.0 million authorization (see 2010 Significant Transactions and Events on page 15.1 for further discussion of the 2010 authorization). The $1.0 billion share repurchase program has an expiration date of August 2012.
On February 4, 2011, we repurchased 7.1 million shares, at a cost of $200.0 million, using an accelerated repurchase agreement with a financial counterparty. As part of this transaction, we simultaneously entered into a forward contract indexed to the price of Unum Group common stock, which subjected the transaction to a future price adjustment. Under the terms of the repurchase agreement, we were to receive, or be required to pay, a price adjustment based on the volume weighted average price of Unum Group common stock during the term of the agreement, less a discount. Any price adjustment payable to us was to be settled in shares of Unum Group common stock. Any price adjustment we would have been required to pay would have been settled in either cash or common stock. The final price adjustment settlement occurred on March 18, 2011 resulting in the delivery to us of 0.6 million additional shares. In total, we repurchased 7.7 million shares pursuant to the accelerated repurchase agreement, which completed the $500.0 million repurchase authorization and initiated the $1.0 billion repurchase program.
In addition to these repurchases, we repurchased an additional 0.9 million shares on the open market at a cost of $23.6 million, for a total repurchase of 8.6 million shares at a cost of $223.6 million during the three months ended March 31, 2011. The dollar value of shares remaining under the $1.0 billion repurchase program at March 31, 2011 is $920.7 million.
Pursuant to these repurchase programs, we retired 7.7 million shares during the first three months of 2011. All other repurchased shares have been classified as treasury stock and accounted for using the cost method.
(continued on next page)
15
Financing
During the first three months of 2011, the remaining $225.1 million of our 7.625% senior notes due March 2011 matured. We also made principal payments of $21.7 million and $2.5 million on our senior secured non-recourse floating rate notes issued by Northwind Holdings, LLC (Northwind) and Tailwind Holdings, LLC (Tailwind), respectively during the three months ended March 31, 2011.
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. The share repurchase program has an expiration date of May 2011. During 2010, we repurchased 16.4 million shares, at a cost of $356.0 million, including commissions of $0.3 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. The notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt. In addition, these notes are effectively subordinated to any indebtedness of our subsidiaries.
During 2010, we made principal payments of $58.3 million and $10.0 million on our senior secured non-recourse floating rate notes issued by Northwind and Tailwind, respectively. We also purchased and retired $10.0 million of our 7.08% medium-term notes due 2024.
Tax Law Change
In March 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 were signed into law. Among other things, the new legislation reduces the tax benefits available to an employer that receives a postretirement prescription drug coverage subsidy from the federal government under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Under the new legislation, to the extent our future postretirement prescription drug coverage expenses are reimbursed under the subsidy program, the expenses covered by the subsidy will no longer be tax deductible after 2012. Employers that receive the subsidy must recognize the deferred tax effects relating to the future postretirement prescription drug coverage in the period the legislation was enacted. Our income tax expense for 2010 includes a non-cash tax charge of $10.2 million which was recorded in the first quarter of 2010 to reflect the impact of the tax law change.
(continued on next page)
15.1
2009 Significant Transactions and Events
Financing
In September 2009, we issued $350.0 million of unsecured senior notes in a public offering. These notes, due in 2016, bear interest at a fixed rate of 7.125% and are payable semi-annually. The notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt.
During 2009, we made principal payments of $48.0 million and $10.0 million on our senior secured non-recourse variable rate notes issued by Northwind and Tailwind, respectively. We also purchased and retired the remaining $132.2 million of our 5.859% senior notes due May 2009, $1.2 million aggregate principal of our 7.19% medium-term notes due 2028, and $0.6 million aggregate principal of our 6.75% notes due 2028 and repaid $58.3 million of reverse repurchase agreements outstanding at December 31, 2008.
Accounting Developments
Accounting Standards Codification (ASC) 105 “Generally Accepted Accounting Principles”
In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards Codification (Codification) as the source of authoritative accounting principles to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Securities and Exchange Commission (SEC) rules and interpretive releases, which may not be included in their entirety within the Codification, will remain as authoritative GAAP for SEC registrants. We adopted Codification effective July 1, 2009. This adoption of Codification had no effect on our financial position or results of operations.
ASC 320 “Investments - Debt and Equity Securities”
In April 2009, the FASB issued a new accounting standard, now included in ASC 320, which amends the other-than-temporary impairment guidance for debt securities and expands and increases the frequency of previously existing disclosures for other-than-temporary impairments. The measure of impairment remains fair value. Under the standard, an other-than-temporaryimpairment must be recognized in earnings for a debt security in an unrealized loss position when an entity either (a) has the intent to sell the debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery. We adopted this standard effective April 1, 2009. The cumulative effect of applying the provisions of this standard increased the April 1, 2009 opening balance of retained earnings $14.3 million, net of tax of $7.7 million, with a corresponding adjustment to accumulated other comprehensive income (loss).
(continued on next page)
15.2
2008 Significant Transactions and Events
Stock Repurchase Agreement
During 2007, our board of directors authorized the repurchase of up to $700.0 million of Unum Group’s common stock. During 2008, we repurchased $700.0 million or 29.9 million shares of common stock under this share repurchase program.
Financing
During 2008, we purchased and retired $17.8 million of our outstanding 5.859% notes due May 2009 and $175.0 million of our 5.997% senior notes due May 2008. We made principal payments of $59.3 million and $10.0 million on our senior secured non-recourse variable rate notes issued by Northwind and Tailwind, respectively. We also purchased and retired $36.6 million of our 6.85% senior debentures due 2015. The costs associated with this debt reduction decreased our 2008 income approximately $0.4 million before tax, or $0.3 million after tax.
15.3