Unum (UNM) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement of Financial Position

Statement of Financial Position, Unclassified - Insurance Based Operations (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Investments
Fixed Maturity Securities - at fair value (amortized cost: $35,905.4; $34,407.6)	37914.4	32134.1
Mortgage Loans	1,404	1274.8
Policy Loans	2,878	2753.8
Other Long-term Investments	233.5	520.1
Short-term Investments	865.5	1183.1
Total Investments	43295.4	37865.9
Other Assets
Cash and Bank Deposits	71.6	49.9
Accounts and Premiums Receivable	1732.4	1784.8
Reinsurance Recoverable	4996.9	4974.2
Accrued Investment Income	642.5	605.6
Deferred Acquisition Costs	2482.5	2472.4
Goodwill	201.6	200.5
Property and Equipment	443.5	409.4
Deferred Income Tax	0	438.8
Other Assets	610.6	615.9
Total Assets	54,477	49417.4
Liabilities
Policy and Contract Benefits	1736.9	1769.5
Reserves for Future Policy and Contract Benefits	37740.8	34581.5
Unearned Premiums	452	463.9
Other Policyholders' Funds	1662.3	1675.6
Income Tax Payable	114.5	115.5
Deferred Income Tax	273.2	0
Short-term Debt	0	190.5
Long-term Debt	2549.6	2259.4
Other Liabilities	1447.6	1963.6
Total Liabilities	45976.9	43019.5
Stockholders' Equity
Common Stock, $0.10 par Authorized: 725,000,000 shares Issued: 363,638,314 and 362,949,412 shares	36.4	36.3
Additional Paid-in Capital	2587.4	2546.9
Accumulated Other Comprehensive Income (Loss)
Net Unrealized Gain (Loss) on Securities Not Other-Than-Temporarily Impaired	376.6	-832.6
Net Unrealized Gain on Securities Other-Than-Temporarily Impaired	3	0
Net Gain on Cash Flow Hedges	370.8	458.5
Foreign Currency Translation Adjustment	-78.7	-177.6
Unrecognized Pension and Postretirement Benefit Costs	-330.7	-406.5
Retained Earnings	6289.5	5527.1
Treasury Stock - at cost: 31,829,067 shares	-754.2	-754.2
Total Stockholders' Equity	8500.1	6397.9
Total Liabilities and Stockholders' Equity	$54,477	49417.4

1_Statement of Financial Positi

Statement of Financial Position, Unclassified - Insurance Based Operations (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Fixed Maturity Securities, amortized cost	35905.4	34407.6
Common Stock, par	0.1	0.1
Common Stock, Authorized	725,000,000	725,000,000
Common Stock, Issued	363,638,314	362,949,412
Treasury Stock, shares	31,829,067	31,829,067

Statement Of Income Insurance B

Statement Of Income Insurance Based Revenue (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenue
Premium Income	7475.5	7783.3	7901.1
Net Investment Income	2346.6	2,389	2409.9
Realized Investment Gain (Loss)
Total Other-Than-Temporary Impairment Loss on Fixed Maturity Securities	-215.5	-151.1	-53.7
Other-Than-Temporary Impairment Loss Recognized in Other Comprehensive Income (Loss)	3.7	0	0
Net Impairment Loss Recognized in Earnings	-211.8	-151.1	-53.7
Other Net Realized Investment Gain (Loss)	223.5	-314.8	-11.5
Net Realized Investment Gain (Loss)	11.7	-465.9	-65.2
Other Income	257.2	275.9	274.1
Total Revenue	10,091	9982.3	10519.9
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	6291.6	6626.4	6988.2
Commissions	837.1	853.3	841.1
Interest and Debt Expense	125.4	156.7	241.9
Deferral of Acquisition Costs	-593.6	-590.9	-556.3
Amortization of Deferred Acquisition Costs	526.2	519.1	480.4
Compensation Expense	793.3	772.6	722.4
Other Expenses	818.7	821.1	805
Total Benefits and Expenses	8798.7	9158.3	9522.7
Income from Continuing Operations Before Income Tax	1292.3	824	997.2
Income Tax (Benefit)
Current	377.9	340.9	264.2
Deferred	61.8	-70.1	60.6
Total Income Tax	439.7	270.8	324.8
Income from Continuing Operations	852.6	553.2	672.4
Discontinued Operations - Note 2
Income Before Income Tax	0	0	17.8
Income Tax	0	0	10.9
Income from Discontinued Operations	0	0	6.9
Net Income	852.6	553.2	679.3
Basic
Income from Continuing Operations	2.57	1.62	1.9
Net Income	2.57	1.62	1.92
Assuming Dilution
Income from Continuing Operations	2.57	1.62	1.89
Net Income	2.57	1.62	1.91

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock	Total
Balance at Beginning of Year at Dec. 31, 2006	34.4	$2,200	612.8	4925.8	-54.2
Net Income				679.3		679.3
Purchases of Treasury Stock					0
Common Stock Activity	1.9	316.9
Dividends to Stockholders (per common share: $0.315; $0.30; $0.30)				-105.2
Cumulative Effect of Accounting Principle Change - Note 1			0	-422.5
All Other Changes During Year			-149.3			-149.3
Balance at End of Year at Dec. 31, 2007	36.3	2516.9	463.5	5077.4	-54.2	8039.9
Net Income				553.2		553.2
Purchases of Treasury Stock					(700)
Common Stock Activity	0	30
Dividends to Stockholders (per common share: $0.315; $0.30; $0.30)				-103.5
Cumulative Effect of Accounting Principle Change - Note 1			0	0
All Other Changes During Year			-1421.7			-1421.7
Balance at End of Year at Dec. 31, 2008	36.3	2546.9	-958.2	5527.1	-754.2	6397.9
Net Income				852.6		852.6
Purchases of Treasury Stock					0
Common Stock Activity	0.1	40.5
Dividends to Stockholders (per common share: $0.315; $0.30; $0.30)				-104.5
Cumulative Effect of Accounting Principle Change - Note 1			-14.3	14.3
All Other Changes During Year			1313.5			1313.5
Balance at End of Year at Dec. 31, 2009	36.4	2587.4	$341	6289.5	-754.2	8500.1

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (Retained Earnings, USD $)
	Total
Dividends to Stockholders, per common share	0.3
Dividends to Stockholders, per common share	0.3
Dividends to Stockholders, per common share	0.315

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Investment Based Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities
Net Income	852.6	553.2	679.3
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Change in Receivables	113.9	77.2	235.5
Change in Deferred Acquisition Costs	-67.4	-71.8	-75.9
Change in Insurance Reserves and Liabilities	441.2	717.5	887.2
Change in Income Taxes	59.2	-84.3	114.8
Change in Other Accrued Liabilities	-18.4	-93.5	-119.8
Non-cash Adjustments to Net Investment Income	-239.8	-306.7	-363.6
Net Realized Investment (Gain) Loss	-11.7	465.9	65.2
Depreciation	74.5	68.8	66.2
Cash Received from Reinsurance Recapture	0	0	211.4
Other, Net	32.9	-0.2	50
Net Cash Provided by Operating Activities	1,237	1326.1	1750.3
Cash Flows from Investing Activities
Proceeds from Sales of Available-for-Sale Securities	1427.2	2066.1	2179.3
Proceeds from Maturities of Available-for-Sale Securities	1132.5	1,288	1171.4
Proceeds from Sales and Maturities of Other Investments	250.5	205.6	312.9
Purchase of Available-for-Sale Securities	-3848.8	-4083.7	-4205.2
Purchase of Other Investments	-267.7	-291.2	-488.8
Net Sales (Purchases) of Short-term Investments	199	432.8	-836.2
Acquisition of Business	0	48.8	0
Disposition of Business	0	0	98.8
Other, Net	-106.6	-91.1	-87.2
Net Cash Used by Investing Activities	-1213.9	-424.7	(1,855)
Cash Flows from Financing Activities
Maturities and Benefit Payments from Policyholder Accounts	-1.5	-10.2	-5.7
Net Short-term Debt Repayments	-190.5	-134.5	0
Issuance of Long-term Debt	346.8	0	800
Long-term Debt Repayments	-59.8	-105.9	-769.5
Cost Related to Early Retirement of Debt	0	-0.4	-34.2
Issuance of Common Stock	8	4.4	307.8
Dividends Paid to Stockholders	-104.5	-103.5	-105.2
Purchases of Treasury Stock	0	(700)	0
Other, Net	0	0.6	(12)
Net Cash Provided (Used) by Financing Activities	-1.5	-1049.5	181.2
Effect of Foreign Exchange Rate Changes on Cash	0.1	-1.1	1.3
Net Increase (Decrease) in Cash and Bank Deposits	21.7	-149.2	77.8
Cash and Bank Deposits at Beginning of Year	49.9	199.1	121.3
Cash and Bank Deposits at End of Year	71.6	49.9	199.1

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net Income	852.6	553.2	679.3
Change in Net Unrealized Gains and Losses on Securities Before Reclassification Adjustment:
Change in Net Unrealized Gains and Losses on Securities Not Other-Than-Temporarily Impaired (net of tax expense (benefit) of $1,375.9; $(1,274.2); $(134.6))	2593.1	-2394.5	-248.8
Change in Net Unrealized Gains and Losses on Securities Other-Than-Temporarily Impaired (net of tax expense of $9.3; $ - ; $ - )	17.3	0	0
Total Change in Net Unrealized Gains and Losses on Securities Before Reclassification Adjustment (net of tax expense (benefit) of $1,385.2; $(1,274.2); $(134.6))	2610.4	-2394.5	-248.8
Reclassification Adjustment for Net Realized Investment Loss (net of tax benefit of $79.0; $59.5; $0.2)	151	114.8	0.3
Change in Net Gain on Cash Flow Hedges (net of tax expense (benefit) of $(45.3); $139.0; $(6.0))	-87.7	276	-11.7
Change in Adjustment to Reserves for Future Policy and Contract Benefits, Net of Reinsurance and Other (net of tax expense (benefit) of $(816.6); $578.1; $34.0)	-1534.9	1,091	69.8
Change in Foreign Currency Translation Adjustment	98.9	(301)	7.4
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense (benefit) of $42.0; $(112.4); $16.7)	75.8	(208)	33.7
Total Other Comprehensive Income (Loss)	1313.5	-1421.7	-149.3
Comprehensive Income (Loss)	2166.1	-868.5	$530

3_Statement Of Other Comprehens

Statement Of Other Comprehensive Income (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Change in Net Unrealized Gains and Losses on Securities Not Other-Than-Temporarily Impaired, tax expense (benefit)	1375.9	-1274.2	-134.6
Change in Net Unrealized Gains and Losses on Securities Other-Than-Temporarily Impaired, tax expense	9.3	0	0
Total Change in Net Unrealized Gains and Losses on Securities Before Reclassification Adjustment, tax expense (benefit)	1385.2	-1274.2	-134.6
Reclassification Adjustment for Net Realized Investment Loss, tax benefit	79	59.5	0.2
Change in Net Gain on Cash Flow Hedges, tax expense (benefit)	-45.3	139	(6)
Change in Adjustment to Reserves for Future Policy and Contract Benefits, Net of Reinsurance and Other, tax expense (benefit)	-816.6	578.1	34
Change in Unrecognized Pension and Postretirement Benefit Costs, tax expense (benefit)	$42	-112.4	16.7

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies	Note 1 - Significant Accounting Policies Basis of Presentation: The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Such accounting principles differ from statutory accounting principles (see Note 15). Intercompany transactions have been eliminated. In connection with our preparation of the consolidated financial statements, we evaluated events that occurred subsequent to December31, 2009, for recognition or disclosure in our financial statements and notes to our financial statements. In March 2007, we closed the sale of our wholly-owned subsidiary GENEX Services, Inc. (GENEX). The financial results of GENEX are reported as discontinued operations in the consolidated financial statements. Except where noted, the information presented in the notes to the consolidated financial statements excludes GENEX. See Note 2 for further discussion. Description of Business: We are the largest provider of group and individual disability products in the United States and the United Kingdom. We also provide a complementary portfolio of other insurance products, including long-term care insurance, life insurance, employer- and employee-paid group benefits, and other related services. We market our products primarily to employers interested in providing benefits to their employees. We have three major business segments: Unum US, Unum UK, and Colonial Life. Our other reporting segments are the Individual Disability Closed Block segment and the Corporate and Other segment. See Note 13 for further discussion of our operating segments. Use of Estimates: The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Many factors influence the assumptions upon which reserves for policy and contract benefits are based, including historical trends in our experience and expected deviations from historical experience. Considerable judgment is required to interpret actual historical experience and to assess the future factors that are likely to influence the ultimate cost of settling existing claims. Given that insurance products contain inherent risks and uncertainties, the ultimate liability may be more or less than such estimates indicate. Fixed Maturity Securities: Fixed maturity securities include bonds and redeemable preferred stocks. Fixed maturity securities not bought and held for the purpose of selling in the near term but for which we do not have the positive intent and ability to hold to maturity are classified as available-for-sale and reported at fair value. Changes in the fair value of available-for-sale fixed maturity securities, except for amounts related to other-than-temporary impairment losses recognized in earnings, are reported as a component of other comprehensive income. These amounts are net of income tax and valu

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations	Note 2 - Discontinued Operations As discussed in Note 1, the sale of GENEX closed effective March1, 2007, and we recognized an after-tax gain of $6.2 million on the sale, which is included in income from discontinued operations in our consolidated statements of income. We intend to continue to purchase certain disability management services for a period of up to five years from the effective date of the sale. The cost of the services to be purchased was negotiated in an arms-length transaction and is not significant to our results of operations. The intercompany amount paid to GENEX for these types of services was $2.3 million for the two months ended February28, 2007. The results of GENEX are reported as discontinued operations and excluded from segment results. For the year ended December31, 2007, results related to GENEX include revenue of $47.2 million and basic and diluted earnings per common share of $0.02.

Fair Values of Financial Instru

Fair Values of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Values of Financial Instruments	Note 3 - Fair Values of Financial Instruments Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, and accrued investment income approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart. December31 (in millions of dollars) 2009 2008 Carrying Amount Fair Value Carrying Amount Fair Value Assets Fixed Maturity Securities $ 37,914.4 $ 37,914.4 $ 32,134.1 $ 32,134.1 Mortgage Loans 1,404.0 1,402.5 1,274.8 1,224.4 Policy Loans 2,878.0 2,907.7 2,753.8 2,811.0 Other Long-term Investments Derivatives 81.1 81.1 381.8 381.8 Equity Securities 1.5 1.5 35.6 35.6 Miscellaneous Long-term Investments 150.9 150.9 102.7 102.7 Liabilities Policyholders Funds Deferred Annuity Products $ 684.0 $ 684.0 $ 746.4 $ 746.4 Supplementary Contracts without Life Contingencies 445.6 445.6 402.5 402.5 Short-term Debt - - 190.5 188.9 Long-term Debt 2,549.6 2,296.0 2,259.4 1,677.4 Other Liabilities Derivatives 144.6 144.6 79.4 79.4 Embedded Derivative in Modified Coinsurance Arrangement 117.4 117.4 360.5 360.5 The methods and assumptions used to estimate fair values of financial instruments are discussed as follows. Fair Value Measurements for Financial Instruments Not Carried at Fair Value Mortgage Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered for similar loans to borrowers with similar credit ratings and maturities. Loans with similar characteristics are aggregated for purposes of the calculations. Policy Loans: Fair values for policy loans, net of reinsurance ceded, are estimated using discounted cash flow analyses and interest rates currently being offered to policyholders with similar policies. The carrying amounts of ceded policy loans of $2,675.7 million and $2,555.6 million as of December31, 2009 and 2008, respectively, are reported on a gross basis in our consolidated balance sheets and approximate fair value. Miscellaneous Long-term Investments: Carrying amounts approximate fair value. Policyholders Funds: Policyholders funds are comprised primarily of deferred annuity products and supplementary contracts without life contingencies. The carrying amounts approximate fair value. Fair values for insurance contracts other than investment contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in our overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of inves

Investments

Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Investments	Note 4 - Investments Fixed Maturity Securities The amortized cost and fair values of securities by security type are shown as follows. Certain prior year amounts have been reclassified by security type to conform to current year presentation. December31, 2009 (in millions of dollars) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Other-Than- Temporary Impairments in AOCI (1) Available-for-Sale Securities United States Government and Government Agencies and Authorities $ 1,473.5 $ 64.0 $ 64.3 $ 1,473.2 $ - States, Municipalities, and Political Subdivisions 640.1 19.9 37.1 622.9 - Foreign Governments 1,357.8 135.0 1.3 1,491.5 - Public Utilities 8,359.7 531.1 109.1 8,781.7 - Mortgage/Asset-Backed Securities 3,413.6 313.1 3.6 3,723.1 - All Other Corporate Bonds 20,617.9 1,538.7 375.5 21,781.1 8.3 Redeemable Preferred Stocks 42.8 0.3 2.2 40.9 - Total Fixed Maturity Securities $ 35,905.4 $ 2,602.1 $ 593.1 $ 37,914.4 $ 8.3 (1) Accumulated Other Comprehensive Income (Loss) December31, 2008 (in millions of dollars) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Available-for-Sale Securities United States Government and Government Agencies and Authorities $ 1,594.6 $ 194.9 $ 63.1 $ 1,726.4 States, Municipalities, and Political Subdivisions 162.7 3.5 5.2 161.0 Foreign Governments 1,069.3 117.8 12.5 1,174.6 Public Utilities 7,554.5 115.8 799.1 6,871.2 Mortgage/Asset-Backed Securities 3,691.7 308.9 55.1 3,945.5 All Other Corporate Bonds 19,949.1 537.3 2,439.1 18,047.3 Redeemable Preferred Stocks 385.7 - 177.6 208.1 Total Fixed Maturity Securities $ 34,407.6 $ 1,278.2 $ 3,551.7 $ 32,134.1 The following charts indicate the length of time our fixed maturity securities had been in a gross unrealized loss position. December31, 2009 (in millions of dollars) Less Than 12 Months 12 Months or Greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Available-for-Sale Securities United States Government and Government Agencies and Authorities $ 158.9 $ 14.9 $ 476.7 $ 49.4 States, Municipalities, and Political Subdivisions 156.6 6.0 126.2 31.1 Foreign Governments 64.0 1.1 11.9 0.2 Public Utilities 914.3 22.2 984.9 86.9 Mortgage/Asset-Backed Securities 29.9 0.4 254.0 3.2 All Other Corporate Bonds 1,465.4 28.7 3,695.6 346.8 Redeemable Preferred Stocks 15.0 0.1 5.6 2.1 Total Fixed Matu

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Financial Instruments	Note 5 - Derivative Financial Instruments Purpose of Derivatives We are exposed to certain risks relating to our ongoing business operations. The primary risks managed by using derivative instruments are interest rate risk, risk related to matching duration for our assets and liabilities, and foreign currency risk. Historically, we have utilized current and forward interest rate swaps and options on forward interest rate swaps, current and forward currency swaps, interest rate forward contracts, forward treasury locks, currency forward contracts, and forward contracts on specific fixed income securities. Almost all hedging transactions are associated with our individual and group long-term care and individual and group disability products. All other product portfolios are periodically reviewed to determine if hedging strategies would be appropriate for risk management purposes. Our cash flow hedging programs are as follows: Interest rate swaps are used to hedge interest rate risks and to improve the matching of assets and liabilities. An interest rate swap is an agreement in which we agree with other parties to exchange, at specified intervals, the difference between fixed rate and variable rate interest amounts. The purpose of these swaps is to hedge the anticipated purchase of long-term bonds thereby protecting us from the potential adverse impact of declining interest rates on the associated policy reserves. We also use interest rate swaps to hedge the potential adverse impact of rising interest rates in anticipation of issuing fixed rate long-term debt. Foreign currency interest rate swaps are used to hedge the currency risk of certain foreign currency- denominated long-term bonds owned for portfolio diversification and to hedge the currency risk associated with certain of the interest payments and debt repayments of the U.S. dollar-denominated debt issued by one of our U.K. subsidiaries. For long-term bonds, we agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. For debt issued, we agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments to the counterparty in exchange for fixed rate U.S. dollar-denominated interest payment. Options on forward interest rate swaps are used to hedge the interest rate risk on certain insurance liabilities with minimum interest rate guarantees. By purchasing options on interest rate swaps, we are able to lock in the minimum investment yields needed to meet the required interest rate guarantee on the insurance liabilities. Forward treasury locks are used to minimize interest rate risk associated with the anticipated purchase or disposal of fixed maturity securities. A forward treasury lock is a derivative contract without an initial investment where we and the counterparty agree to purchase or sell a specific U.S. Treasury bond at a future date at a pre-determined price. Foreign currency forward contracts are used to minimize foreign currency risks

Liability for Unpaid Claims and

Liability for Unpaid Claims and Claim Adjustment Expenses
	12 Months Ended Dec. 31, 2009 USD / shares
Liability for Unpaid Claims and Claim Adjustment Expenses	Note 6 - Liability for Unpaid Claims and Claim Adjustment Expenses Changes in the liability for unpaid claims and claim adjustment expenses are as follows: 2009 2008 2007 (in millions of dollars) Balance at January1 $ 24,419.0 $ 24,790.0 $ 24,324.4 Less Reinsurance Recoverable 2,226.3 2,249.8 2,257.3 Net Balance at January1 22,192.7 22,540.2 22,067.1 Acquisition or Recapture of Business - Note 12 - 44.2 204.3 Incurred Related to Current Year 4,433.3 4,569.4 4,836.9 Prior Years Interest 1,285.4 1,281.2 1,199.9 Incurred for Claim Reassessment Process - - 65.8 All Other Incurred (34.7) 144.7 174.3 Foreign Currency 206.7 (697.0) 33.7 Total Incurred 5,890.7 5,298.3 6,310.6 Paid Related to Current Year (1,451.6) (1,412.8) (1,460.5) Prior Years (4,225.4) (4,277.2) (4,581.3) Total Paid (5,677.0) (5,690.0) (6,041.8) Net Balance at December31 22,406.4 22,192.7 22,540.2 Plus Reinsurance Recoverable 2,179.3 2,226.3 2,249.8 Balance at December31 $ 24,585.7 $ 24,419.0 $ 24,790.0 The majority of the net balances are related to disability claims with long-tail payouts on which interest earned on assets backing liabilities is an integral part of pricing and reserving. Interest accrued on prior year reserves has been calculated on the opening reserve balance less one-half years cash payments at our average reserve discount rate used during 2009, 2008, and 2007. Our Incurred Related to Prior Years for 2007 includes adjustments to reserves for our claim reassessment process. We entered into settlement agreements with various state insurance regulators during 2004 and 2005. In connection with these settlement agreements, we increased our disability claim reserves $65.8 million in 2007 to reflect our revised estimate for costs associated with the claim reassessment process. Paid Related to Prior Years includes $248.0 million in 2007 for these reserve charges. Incurred Related to Prior Years - All Other Incurred declined in 2009 relative to the prior two years. The decrease relates primarily to an increased rate of claim recoveries for our group long-term disability and individual disability - recently issued lines of business in Unum US and in our Individual Disability - Closed Block segment. Claim resolution rates are very sensitive to operational and environmental changes and can be volatile over short periods of time. During 2009, we continued to improve the operating effectiveness of our Unum US segment and Individual Disability - Closed Block segment claims management performance. Our claims management performance during 2009 for Unum US group long-term disability exceeded our long-term assumptions in regard to claim resolution rates. For the Unum US individual

Income Tax

Income Tax
	12 Months Ended Dec. 31, 2009 USD / shares
Income Tax	Note 7 - Income Tax Total income tax expense (benefit) is allocated as follows: Year Ended December31 2009 2008 2007 (in millions of dollars) Income from Continuing Operations $ 439.7 $ 270.8 $ 324.8 Income from Discontinued Operations - - 10.9 Stockholders Equity - Additional Paid-in Capital Stock-Based Compensation 1.5 (0.6) (5.8) Stockholders Equity - Accumulated Other Comprehensive Income (Loss) Change in Net Unrealized Gains and Losses on Securities Not Other-Than-Temporarily Impaired 1,454.9 (1,214.7) (134.4) Change in Net Unrealized Gains and Losses on Securities Other-Than-Temporarily Impaired 1.6 - - Change in Net Gain on Cash Flow Hedges (45.3) 139.0 (6.0) Change in Adjustment to Reserves for Future Policy and Contract Benefits, Net of Reinsurance and Other (816.6) 578.1 34.0 Change in Unrecognized Pension and Postretirement Benefit Costs 42.0 (112.4) 16.7 Stockholders Equity - Retained Earnings Adoption of ASC 320 Update - Note 1 7.7 - - Adoption of ASC 944 Update - Note 1 - - (232.9) Adoption of ASC 740 Update - Note 1 - - (22.7) Total $ 1,085.5 $ (339.8) $ (15.4) A reconciliation of the income tax expense (benefit) attributable to income from continuing operations before income tax, computed at U.S. federal statutory tax rates, to the income tax expense (benefit) as included in our consolidated statements of income, is as follows: YearEndedDecember31 2009 2008 2007 Statutory Income Tax 35.0 % 35.0 % 35.0 % Foreign Items (0.8) (2.0) (1.2) Other Items, Net (0.2) (0.1) (1.2) Effective Tax 34.0 % 32.9 % 32.6 % Our deferred income tax asset and liability consists of the following: December 31 2009 2008 (inmillionsofdollars) Deferred Tax Liability Deferred Acquisition Costs $ 309.5 $ 297.9 Unrealized Gains and Losses 382.5 - Other 145.0 99.5 Gross Deferred Tax Liability 837.0 397.4 Deferred Tax Asset Invested Assets 329.8 349.4 Unrealized Gains and Losses - 212.0 Employee Benefits 210.9 233.4 Other 27.3 45.5 Gross Deferred Tax Asset 568.0 840.3 Less Valuation Allowance 4.2 4.1 Net Deferred Tax Asset 563.8 836.2 Total Net Deferred Tax (Asset) Liability $ 273.2 $ (438.8) Our consolidated statements of income include amounts subject to both domestic and foreign taxation. The income and related tax expense (benefit) are as follows: Year Ended December31 2009 2008 2007 (in millions of dollars) Income Before Tax United States - Federal $ 1,065.2 $ 531.3

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt	Note 8 - Debt Long-term and short-term debt consists of the following: December31 2009 2008 (inmillionsofdollars) Senior Secured Notes, variable due 2037, callable at or above par $ 692.7 $ 740.7 Senior Secured Notes, variable due 2036, callable at or above par 92.5 102.5 Notes @ 7.375% due 2032, callable at or above par 39.5 39.5 Notes @ 6.75% due 2028, callable at or above par 165.8 166.4 Notes @ 7.25% due 2028, callable at or above par 200.0 200.0 Notes @ 7.125% due 2016, callable at or above par 350.0 - Notes @ 6.85%, due 2015, callable at or above par 296.7 296.7 Notes @ 7.625% due 2011, callable at or above par 225.1 225.1 Notes @ 7.0% due 2018, non-callable 200.0 200.0 Medium-term Notes @ 7.0% to 7.2% due 2023 to 2028, non-callable 60.8 62.0 Junior Subordinated Debt Securities @ 7.405% due 2038 226.5 226.5 Long-term Debt 2,549.6 2,259.4 Notes @ 5.859% due 2009 - 132.2 Repurchase Agreements, Weighted Average @ 2.71% due 2009 - 58.3 Short-term Debt - 190.5 Total $ 2,549.6 $ 2,449.9 Collateralized debt, which consists of the senior secured notes, ranks highest in priority, followed by unsecured notes, which consists of notes and medium-term notes, followed by junior subordinated debt securities. The junior subordinated debt securities due 2038 are callable under limited, specified circumstances. The remaining callable debt may be redeemed, in whole or in part, at any time. The aggregate contractual principal maturities are $225.1 million in 2011 and $2,324.7 million in 2015 and thereafter. Senior Secured Notes In 2007, Northwind Holdings, LLC (Northwind Holdings), a wholly-owned subsidiary of Unum Group, issued $800.0 million of insured, senior, secured notes due 2037 (the Northwind notes) in a private offering. The Northwind notes bear interest at a floating rate equal to the three-month LIBOR plus 0.78%. Northwind Holdings ability to meet its obligations to pay principal, interest, and other amounts due on the Northwind notes will be dependent principally on its receipt of dividends from Northwind Reinsurance Company (Northwind Re), the sole subsidiary of Northwind Holdings. Northwind Re reinsured the risks attributable to specified individual disability insurance policies issued by or reinsured by Provident Life and Accident Insurance Company, Unum Life Insurance Company of America (Unum America), and The Paul Revere Life Insurance Company (collectively, the ceding insurers) pursuant to separate reinsurance agreements between Northwind Re and each of the ceding insurers. The ability of Northwind Re to pay dividends to Northwind Holdings will depend on its satisfaction of applicable regulatory requirements and the performance of the reinsured policies. Recourse for the payment of principal, interest, and other amounts due on the Northwind notes is limited to the collateral for the Northwind notes and the other assets, if

Pensions and Other Postretireme

Pensions and Other Postretirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Pensions and Other Postretirement Benefits	Note 9 - Pensions and Other Postretirement Benefits We sponsor several defined benefit pension and other postretirement benefit (OPEB) plans for our employees, including non-qualified pension plans. The U.S. plans comprise the majority of our total benefit obligation and benefit cost. We maintain a separate defined benefit plan for eligible employees in our U.K. operation. The U.K. defined benefit pension plan was closed to new entrants on December31, 2002. The following tables provide the changes in the benefit obligation and fair value of plan assets and statements of the funded status of the plans. Pension Benefits U.S.Plans NonU.S.Plans OPEB 2009 2008 2009 2008 2009 2008 (in millions of dollars) Change in Benefit Obligation Benefit Obligation at Beginning of Year $ 1,009.3 $ 904.8 $ 127.0 $ 187.9 $ 192.6 $ 189.4 Service Cost 29.6 28.7 4.9 7.8 2.9 3.3 Interest Cost 64.0 58.2 8.7 10.3 11.3 11.5 Plan Participant Contributions - - - - 3.2 3.2 Actuarial (Gain) Loss 44.7 37.7 24.1 (28.8) (0.6) (0.9) Benefits and Expenses Paid (24.0) (20.1) (5.8) (3.9) (14.4) (13.9) Plan Amendments - - - - (4.4) - Prior Service Cost - - 0.2 - - - Change in Foreign Exchange Rates - - 14.4 (46.3) - - Benefit Obligation at End of Year $ 1,123.6 $ 1,009.3 $ 173.5 $ 127.0 $ 190.6 $ 192.6 Accumulated Benefit Obligation at December31 $ 1,031.6 $ 952.2 $ 163.4 $ 110.8 N/A N/A Change in Fair Value of Plan Assets Fair Value of Plan Assets at Beginning of Year $ 658.1 $ 784.3 $ 120.1 $ 186.2 $ 12.0 $ 12.0 Actual Return on Plan Assets 180.2 (239.7) 27.5 (25.2) 0.7 0.3 Employer Contributions 74.2 133.6 5.5 7.3 10.4 10.4 Plan Participant Contributions - - - - 3.2 3.2 Benefits and Expenses Paid (24.0) (20.1) (5.8) (3.9) (14.4) (13.9) Change in Foreign Exchange Rates - - 13.5 (44.3) - - Fair Value of Plan Assets at End of Year $ 888.5 $ 658.1 $ 160.8 $ 120.1 $ 11.9 $ 12.0 Unfunded Liability $ 235.1 $ 351.2 $ 12.7 $ 6.9 $ 178.7 $ 180.6 The amounts recognized in our consolidated balance sheets for our pension and OPEB plans at December31, 2009 and 2008 are as follows: Pension Benefits U.S.Plans NonU.S.Plans OPEB 2009 2008 2009 2008 2009 2008 (in millions of dollars) Current Liability $ 4.0 $ 3.5 $ - $

Stockholders' Equity and Earnin

Stockholders' Equity and Earnings Per Common Share
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity and Earnings Per Common Share	Note 10 - Stockholders Equity and Earnings Per Common Share Common Stock During 2007, Unum Groups board of directors authorized the repurchase of up to $700.0 million of Unum Group common stock. In January 2008, we repurchased approximately 14.0million shares for $350.0 million, using an accelerated share repurchase agreement. 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. 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 was to be settled, at our option, in either cash or common stock. A 30 percent partial acceleration of the agreement, 4.2million shares, occurred on March26, 2008 and settled on March28, 2008, with the price adjustment resulting in the delivery to us of approximately 0.5million additional shares of Unum Group common stock. The remaining 9.8million shares settled on May29, 2008, with the price adjustment resulting in the delivery to us of approximately 0.9million additional shares. During August 2008, we repurchased approximately 12.5million shares for $350.0 million, using an accelerated share repurchase agreement with terms similar to the earlier agreement. A 50 percent partial acceleration of the agreement, 6.25million shares, occurred on October7, 2008 and settled on October10, 2008, with the price adjustment resulting in the delivery to us of approximately 1.0million additional shares of Unum Group common stock. The remaining 6.25million shares settled on October14, 2008, with the price adjustment resulting in the delivery to us of approximately 1.0million additional shares. In total, we repurchased 29.9million shares of Unum Group common stock under the share repurchase program. These shares are reflected as treasury stock in our consolidated balance sheets. We settled the purchase contract element of the 2004 units in May 2007 by issuing 17.7million shares of common stock. See Note 8 for further discussion. Preferred Stock Unum Group has 25,000,000 shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been issued to date. Earnings Per Common Share Net income per common share is determined as follows: Year Ended December31 2009 2008 2007 (inmillionsofdollars,exceptsharedata) Numerator Net Income $ 852.6 $ 553.2 $ 679.3 Denominator (000s) Weighted Average Common Shares - Basic 331,266.2 341,022.8 352,969.1 Dilution for the Purchase Contract Element of the Adjustable Conversion-Rate Equity Security Units - - 1,673.0 Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards 870.0 537.5 1,134.4 Weighted Average Common Shares - Assuming Dilution 332,136.2 341,560.3 355,776.5 Net Income Per Common Share Basic $ 2.57 $ 1.62 $ 1.92 Assumin

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation	Note 11 - Stock-Based Compensation Description of Stock Plans Under the stock incentive plan of 2007, up to 35.00million shares of common stock are available for awards to our employees, officers, consultants, and directors. Awards may be in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, and other stock-based awards. Each full value award, defined as any award other than a stock option or stock appreciation right, is counted as 2.7 shares. The exercise price for stock options issued cannot be less than the fair market value of the underlying common stock as of the grant date. Stock options have a maximum term of ten years after the date of grant and generally vest after three years.At December31, 2009, approximately 23.44million shares were available for future grants. Under the broad-based stock plan of 2002, up to 2.39million shares of common stock were available for stock option awards to our employees, officers, consultants, and brokers, excluding certain senior officers and directors. The plan was terminated in February 2004 for purposes of any further grants. The stock options have a maximum term of ten years after the date of grant and generally vest after three years. Under the broad-based stock plan of 2001, up to 2.00million shares of common stock were available for stock option awards to our employees, officers, consultants, and brokers, excluding certain senior officers and directors. The plan was terminated in December 2007 for purposes of any further grants, other than reload grants, for which 20,000 shares were available at December31, 2009. The stock options have a maximum term of ten years after the date of grant and generally vest after three years. Under the stock plan of 1999, comprised of the Provident Companies, Inc. stock plan of 1999 and the UnumProvident Corporation stock plan of 1999, an aggregate of up to 17.50million shares of common stock were available for awards to our employees, officers, brokers, and directors. Awards could be in the form of stock options, stock appreciation rights, stock awards, dividend equivalent awards, or any other right or interest relating to stock. The plan was terminated in May 2007 for purposes of any further grants, other than reload grants, for which 250,000 shares were available at December31, 2009. Stock options have a maximum term of ten years after the date of grant and generally vest after three years. Substantially all of our employees are eligible to participate in an employee stock purchase plan (ESPP). Under the plan, up to 3.46million shares of common stock are authorized for issuance, of which approximately 1.23million remain available for issuance at December31, 2009. Stock may be purchased at the end of each financial quarter at a purchase price of 85 percent of the market price. We issue new shares of common stock for nonvested stock grants, exercise of stock options, and purchase of ESPP shares. Nonvested Stock Awards Nonvested share activity is summarized as follows: Shares (000s) WeightedAverage Grant Date Fair Value Nonvested at December 31, 2008

Reinsurance

Reinsurance
	12 Months Ended Dec. 31, 2009 USD / shares
Reinsurance	Note 12 - Reinsurance In the normal course of business, we assume reinsurance from and cede reinsurance to other insurance companies. The primary purpose of ceded reinsurance is to limit losses from large exposures. However, if the assuming reinsurer is unable to meet its obligations, we remain contingently liable. We evaluate the financial condition of reinsurers and monitor concentration of credit risk to minimize this exposure. We may also require assets in trust, letters of credit, or other acceptable collateral to support reinsurance recoverable balances. The reinsurance recoverable at December31, 2009 relates to 89 companies. Fourteen major companies account for approximately 92 percent of the reinsurance recoverable at December31, 2009, and are all companies rated A or better by A.M. Best Company (AM Best) or are fully securitized by letters of credit or investment-grade fixed maturity securities held in trust. Of the remaining reinsurance recoverable, approximately seven percent relates to business reinsured either with companies rated A- or better by AM Best, with overseas entities with equivalent ratings or backed by letters of credit or trust agreements, or through reinsurance arrangements wherein we retain the assets in our general account. Approximately one percent of the reinsurance recoverable is held by companies either rated below A- by AM Best or not rated. Reinsurance activity is accounted for on a basis consistent with the terms of the reinsurance contracts and the accounting used for the original policies issued. Premium income and benefits and change in reserves for future benefits are presented in our consolidated statements of income net of reinsurance ceded. Reinsurance data is as follows: Year Ended December31 2009 2008 2007 (in millions of dollars) Direct Premium Income $ 7,494.7 $ 7,817.1 $ 7,997.5 Reinsurance Assumed 239.5 264.4 289.6 Reinsurance Ceded (258.7) (298.2) (386.0) Net Premium Income $ 7,475.5 $ 7,783.3 $ 7,901.1 Ceded Benefits and Change in Reserves for Future Benefits $ 604.2 $ 737.2 $ 947.8 During 2008, we entered into a reinsurance arrangement for the ongoing administration and management of a closed block of group long-term disability claims in our Unum UK segment.As a result of the assumption, we received cash of 24.5million, recorded 0.4million in accrued premiums receivable, assumed reserves of 22.2million (approximately $44.2 million), and recorded a deferred gain of 2.7 million. During 2007, we recaptured a closed block of individual disability business in our Individual Disability Closed Block segment, with approximately $204.3 million in reserves and $7.0 million of annual premium. The recapture had an immaterial effect on operating results. During 2000, we reinsured substantially all of the individual life and corporate-owned life insurance blocks of business, which are now reported in our Corporate and Other segment. The gain on these reinsurance transactions was deferred and is being amortized into income. A portion of

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information	Note 13 - Segment Information Our reporting segments are comprised of the following: Unum US, Unum UK, Colonial Life, Individual Disability - Closed Block, and Corporate and Other. The Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business, comprised of individual disability - recently issued, group and individual long-term care, and brokerage voluntary benefits products. These products are marketed through our field sales personnel who work in conjunction with independent brokers and consultants. We discontinued selling individual long-term care insurance effective in 2009. The Unum UK segment includes group long-term disability insurance, group life products, and individual disability products sold primarily in the United Kingdom through field sales personnel and independent brokers and consultants. The Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products marketed primarily to employees at the workplace through an agency sales force and brokers. The Individual Disability Closed Block segment generally consists of those individual disability policies that were designed to be distributed to individuals in a non-workplace setting and which were primarily in-force prior to the substantial changes in product offerings, pricing, distribution, and underwriting which generally occurred during the period 1994 through 1998. A minimal amount of new business continued to be sold subsequent to these changes, but we stopped selling new policies in this segment at the beginning of 2004 other than update features contractually allowable on existing policies. The Corporate and Other segment includes investment income on corporate assets not specifically allocated to a line of business, interest expense on corporate debt other than non-recourse debt, and certain other corporate income and expense not allocated to a line of business.The Corporate and Other segment also includes results from certain Unum US 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. In the following segment financial data, operating revenue excludes net realized investment gains and losses. Operating income or operating loss excludes net realized investment gains and losses, income tax, and results of discontinued operations. These are considered non-GAAP financial measures. These non-GAAP financial measures of operating revenue and operating income or operating loss differ from revenue and income from continuing operations before income tax as presented in our consolidated statements of income prepared in accordance with GAAP due to the exclusion of before-tax realized investment gains and losses. We measure segment performance excluding realized investment gains and losses because we believe that this performance measure is a better indicator of the ongoing businesses and the underlying tren

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingent Liabilities	Note 14 - Commitments and Contingent Liabilities Commitments We have noncancelable lease obligations on certain office space and equipment. As of December31, 2009, the aggregate net minimum lease payments were $102.2 million payable as follows: $25.7 million in 2010, $20.2 million in 2011, $16.3 million in 2012, $11.5 million in 2013, $8.9 million in 2014, and $19.6 million thereafter. Rental expense for the years ended December31, 2009, 2008, and 2007 was $30.1 million, $34.5 million, and $35.7 million, respectively. Contingent Liabilities We are a defendant in a number of litigation matters. In some of these matters, no specified amount is sought. In others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted in the United States courts with respect to requests formonetary damages, including some courts in which no specified amount is required and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on our extensive experience and that of others in the industrywith respect to litigatingor resolving claims through settlement over an extended period of time, we believe that the monetary damages asserted ina lawsuit or claim bear little relation tothe merits of the case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated. Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the disclosures that follow about litigation, we refer to the name of the company specified in the original complaint, following the practice in the courts. Therefore, references to UnumProvident Corporation should be understood as references to Unum Group. Claims Handling Matters Multidistrict Litigation Between November22, 2002 and March11, 2003 five purported derivative actions were filed in state and federal courts in Tennessee. The defendants removed each of the actions that were filed in Tennessee state court to the U.S. District Court for the Eastern District of Tennessee, and the cases were consolidated. The plaintiffs then filed a single consolidated amended complaint, which purports to assert claims on behalf of the Company against certain current and past members of our board of directors and certain executive officers alleging breaches of fiduciary duties and other violations of law by establishing or permitting to be established an unlawful policy of denying legitimate disability claims and improper financial reporting, and that certain defendants engaged in insider trading. On August27, 2008, the parties entered into a stipulation of settlement to resolve the litigation. Under the terms of the settlement, which was subject to approval of the court, we agreed to implement or continue certain corpor

Statutory Financial Information

Statutory Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Statutory Financial Information	Note 15 - Statutory Financial Information Statutory Net Income, Capital and Surplus, and Dividends Statutory net income for U.S. life insurance companies is reported in conformity with statutory accounting principles prescribed by the NAIC and adopted by applicable domiciliary state laws. The commissioners of the states of domicile have the right to permit other specific practices that may deviate from prescribed practices. For the years ended December31, 2009, 2008 or 2007, none of the states of domicile for our U.S. insurance subsidiaries had adopted accounting practices that differed materially from statutory accounting principles prescribed by the NAIC. The statutory operating results of our traditional U.S. insurance subsidiaries, which exclude Tailwind Re and Northwind Re, as well as the statutory results for these two special purpose financial captive U.S. insurance subsidiaries, are as follows: YearEndedDecember31 2009 2008 2007 (inmillionsofdollars) Combined Net Income (Loss) U.S. Traditional Insurance Subsidiaries $ 639.2 $ 540.8 $ 530.8 Tailwind Re and Northwind Re $ 87.2 $ 79.8 $ (111.5) Combined Net Gain (Loss) from Operations U.S. Traditional Insurance Subsidiaries $ 741.2 $ 682.0 $ 589.1 Tailwind Re and Northwind Re $ 87.2 $ 81.2 $ (111.9) Statutory capital and surplus is as follows: December31 2009 2008 (inmillionsofdollars) Combined Capital and Surplus U.S. Traditional Insurance Subsidiaries $ 3,286.9 $ 2,756.0 Tailwind Re and Northwind Re $ 1,300.0 $ 1,300.5 Restrictions under applicable state insurance laws limit the amount of ordinary dividends that can be paid to a parent company from its insurance subsidiaries without prior approval by regulatory authorities. For life insurance companies domiciled in the United States, that limitation typically equals, depending on the state of domicile, either ten percent of an insurers statutory surplus with respect to policyholders as of the preceding year end or the statutory net gain from operations, excluding realized investment gains and losses, of the preceding year. The payment of ordinary dividends to a parent company from its insurance subsidiaries is further limited to the amount of statutory surplus as it relates to policyholders. Based on the restrictions under current law, $719.7 million is available for the payment of ordinary dividends from our U.S. insurance subsidiaries, excluding Tailwind Re and Northwind Re, during 2010. The ability of Tailwind Re and Northwind Re to pay dividends to their parent companies, Tailwind Holdings and Northwind Holdings, wholly-owned subsidiaries of Unum Group, will depend on their satisfaction of applicable regulatory requirements and on the performance of the business reinsured by Tailwind Re and Northwind Re. We also have the ability to draw a dividend from our United Kingdom insurance subsidiary, Unum Limited. Such dividends are limited based on insurance company legislation in the United Kingdom, which require

Quarterly Results of Operations

Quarterly Results of Operations (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Results of Operations (Unaudited)	Note 16 - Quarterly Results of Operations (Unaudited) The following is a summary of our unaudited quarterly results of operations for 2009 and 2008: 2009 4th 3rd 2nd 1st (in millions of dollars, except share data) Premium Income $ 1,865.7 $ 1,861.1 $ 1,875.9 $ 1,872.8 Net Investment Income 595.7 579.6 597.6 573.7 Net Realized Investment Gain (Loss) (25.9) 14.9 87.3 (64.6) Total Revenue 2,496.6 2,517.5 2,628.0 2,448.9 Income Before Income Tax 295.9 334.6 411.2 250.6 Net Income 199.4 221.1 267.2 164.9 Net Income Per Common Share Basic 0.60 0.67 0.81 0.50 Assuming Dilution 0.60 0.66 0.80 0.50 2008 4th 3rd 2nd 1st (in millions of dollars, except share data) Premium Income $ 1,917.7 $ 1,946.5 $ 1,968.6 $ 1,950.5 Net Investment Income 589.8 594.7 613.1 591.4 Net Realized Investment Gain (Loss) (257.7) (165.8) 26.1 (68.5) Total Revenue 2,323.7 2,442.7 2,675.3 2,540.6 Income Before Income Tax 52.5 159.8 367.0 244.7 Net Income 41.8 108.0 240.3 163.1 Net Income Per Common Share Basic 0.13 0.32 0.70 0.47 Assuming Dilution 0.13 0.32 0.69 0.46

SCHEDULE I--SUMMARY OF INVESTME

SCHEDULE I--SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE I--SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES	SCHEDULE I--SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES Unum Group and Subsidiaries Type of Investment Cost or Amortized Cost (1) Fair Value Amountatwhich shown in the balance sheet (in millions of dollars) Fixed Maturity Securities: Bonds United States Government and Government Agencies and Authorities $ 1,473.5 $ 1,473.2 $ 1,473.2 States, Municipalities, and Political Subdivisions 640.1 622.9 622.9 Foreign Governments 1,357.8 1,491.5 1,491.5 Public Utilities 8,359.7 8,781.7 8,781.7 Mortgage/Asset-Backed Securities 3,413.6 3,723.1 3,723.1 All Other Corporate Bonds 20,617.9 21,781.1 21,781.1 Redeemable Preferred Stocks 42.8 40.9 40.9 Total 35,905.4 $ 37,914.4 37,914.4 Mortgage Loans 1,404.0 1,404.0 Policy Loans 2,878.0 2,878.0 Other Long-term Investments Derivatives - 81.1 (2) Equity Securities 1.6 1.5 Miscellaneous Long-term Investments 142.1 150.9 (3) Short-term Investments 865.5 865.5 $ 41,196.6 $ 43,295.4 (1) Amortized cost for fixed maturity securities and mortgage loans represents original cost reduced by repayments, write-downs from other-than-temporary declines in fair value, amortization of premiums, and accretion of discounts. (2) Derivatives are carried at fair value. (3) Difference between cost and carrying value primarily results from changes in our ownership equity since acquisition.

SCHEDULE II--CONDENSED FINANCIA

SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT	SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT Unum Group (Parent Company) BALANCE SHEETS December31 2009 2008 (inmillionsofdollars) Assets Fixed Maturity Securities - at fair value (amortized cost: $289.4; $65.3) $ 292.0 $ 61.9 Short-term Investments 400.0 254.9 Investment in Subsidiaries 9,401.8 7,537.8 Other Assets 490.7 527.8 Total Assets $ 10,584.5 $ 8,382.4 Liabilities and Stockholders Equity Liabilities Short-term Debt $ - $ 132.2 Long-term Debt 1,467.7 1,119.5 Other Liabilities 616.7 732.8 Total Liabilities 2,084.4 1,984.5 Stockholders Equity Common Stock 36.4 36.3 Additional Paid-in Capital 2,587.4 2,546.9 Accumulated Other Comprehensive Income (Loss) 341.0 (958.2) Retained Earnings 6,289.5 5,527.1 Treasury Stock (754.2) (754.2) Total Stockholders Equity 8,500.1 6,397.9 Total Liabilities and Stockholders Equity $ 10,584.5 $ 8,382.4 See notes to condensed financial information. STATEMENTS OF INCOME Year Ended December31 2009 2008 2007 (in millions of dollars) Dividends from Subsidiaries $ 313.8 $ 684.2 $ 1,839.3 Interest from Subsidiaries 0.5 6.6 11.8 Other Income 47.8 62.5 74.6 Total Revenue 362.1 753.3 1,925.7 Interest and Debt Expense 90.2 95.6 198.2 Other Expenses 63.9 22.7 40.1 Total Expenses 154.1 118.3 238.3 Income Before Income Tax and Equity in Undistributed Earnings (Loss) of Subsidiaries 208.0 635.0 1,687.4 Income Tax (Benefit) (9.5) 24.1 (20.6) Income Before Equity in Undistributed Earnings (Loss) of Subsidiaries 217.5 610.9 1,708.0 Equity in Undistributed Earnings (Loss) of Subsidiaries 635.1 (57.7) (1,028.7) Net Income $ 852.6 $ 553.2 $ 679.3 See notes to condensed financial information. STATEMENTS OF CASH FLOWS Year Ended December31 2009 2008 2007 (in millions of dollars) Cash Provided by Operating Activities $ 324.1 $ 567.7 $ 783.0 Cash Flows from Investing Activities Proceeds from Sales of Available-for-Sale Securities 49.7 443.6 239.7 Proceeds from Maturities of Available-for-Sale Securities 24.7 2.2 15.8 Purchases of Available-for-Sale Securities (299.2) (1.7) (15.1) Net Sales (Purchases) of Short-term Investments (145.1) 106.6 (287.6) Cash Distributions to Subsidiaries (1.3) (123.7) (288.5) Short-term Notes Receivable from Subsidiaries (10.5)

SCHEDULE III--SUPPLEMENTARY INS

SCHEDULE III--SUPPLEMENTARY INSURANCE INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE III--SUPPLEMENTARY INSURANCE INFORMATION	SCHEDULE III--SUPPLEMENTARY INSURANCE INFORMATION Unum Group and Subsidiaries Segment Deferred Acquisition Costs Reservesfor FuturePolicy and Contract Benefits Unearned Premiums Policyand Contract Benefits (in millions of dollars) December31, 2009 Unum US $ 1,662.4 $ 15,546.3 $ 141.6 $ 933.8 Unum UK 58.9 1,988.1 148.1 150.7 Colonial Life 761.2 1,425.5 25.3 129.3 Individual Disability - Closed Block - 12,683.9 131.6 115.9 Corporate and Other - 6,097.0 5.4 407.2 Total $ 2,482.5 $ 37,740.8 $ 452.0 $ 1,736.9 December31, 2008 Unum US $ 1,661.8 $ 13,660.4 $ 136.7 $ 939.1 Unum UK 54.7 1,710.7 153.1 138.5 Colonial Life 755.9 1,366.7 24.4 139.8 Individual Disability - Closed Block - 11,897.4 144.1 119.8 Corporate and Other - 5,946.3 5.6 432.3 Total $ 2,472.4 $ 34,581.5 $ 463.9 $ 1,769.5 Segment Premium Income Net Investment Income (1) Benefitsand Changein Reservesfor Future Benefits Amortization ofDeferred Acquisition Costs AllOther Expenses(2) Premiums Written(3) (in millions of dollars) Year Ended December31, 2009 Unum US $ 4,873.1 $ 1,200.5 $ 3,855.9 $ 317.2 $ 1,244.2 $ 3,587.3 Unum UK 686.1 124.5 373.6 30.5 159.3 508.6 Colonial Life 1,015.1 114.3 480.6 178.5 189.9 851.5 Individual Disability - Closed Block 898.5 740.6 1,489.6 - 216.0 892.8 Corporate and Other 2.7 166.7 91.9 - 171.5 0.9 Total $ 7,475.5 $ 2,346.6 $ 6,291.6 $ 526.2 $ 1,980.9 Year Ended December31, 2008 Unum US $ 4,963.0 $ 1,136.4 $ 3,998.4 $ 320.3 $ 1,229.3 $ 3,672.8 Unum UK 889.3 181.9 511.4 32.4 205.4 714.7 Colonial Life 977.3 105.7 464.0 166.4 184.9 821.7 Individual Disability - Closed Block 952.3 767.5 1,544.8 - 245.9 950.9 Corporate and Other 1.4 197.5 107.8 - 147.3 0.6 Total $ 7,783.3 $ 2,389.0 $ 6,626.4 $ 519.1 $ 2,012.8 Year Ended December31, 2007 Unum US $ 5,014.0 $ 1,114.0 $ 4,246.4 $ 277.1 $ 1,198.0 $ 3,705.5 Unum UK 968.3 187.4 574.3 49.4 209.3 790.9 Colonial Life 907.2 99.9 437.8 153.9 170.5 766.6 Individual Disability - Closed Block 1,009.9 827.6 1,614.5 - 217.2

SCHEDULE IV--REINSURANCE

SCHEDULE IV--REINSURANCE
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE IV--REINSURANCE	SCHEDULE IV--REINSURANCE Unum Group and Subsidiaries Gross Amount Ceded toOther Companies Assumed fromOther Companies Net Amount Percentage Amount Assumed toNet (in millions of dollars) Year Ended December31, 2009 Life Insurance in Force $ 675,382.0 $ 28,027.1 $ 1,895.5 $ 649,250.4 0.3 % Premium Income: Life Insurance $ 1,757.5 $ 166.4 $ 11.8 $ 1,602.9 0.7 % Accident and Health Insurance 5,737.2 92.3 227.7 5,872.6 3.9 % Total $ 7,494.7 $ 258.7 $ 239.5 $ 7,475.5 3.2 % Year Ended December31, 2008 Life Insurance in Force $ 627,126.4 $ 38,786.9 $ 1,943.0 $ 590,282.5 0.3 % Premium Income: Life Insurance $ 1,820.1 $ 212.8 $ 12.4 $ 1,619.7 0.8 % Accident and Health Insurance 5,997.0 85.4 252.0 6,163.6 4.1 % Total $ 7,817.1 $ 298.2 $ 264.4 $ 7,783.3 3.4 % Year Ended December31, 2007 Life Insurance in Force $ 689,969.3 $ 84,861.2 $ 2,042.4 $ 607,150.5 0.3 % Premium Income: Life Insurance $ 1,919.2 $ 291.3 $ 12.6 $ 1,640.5 0.8 % Accident and Health Insurance 6,078.3 94.7 277.0 6,260.6 4.4 % Total $ 7,997.5 $ 386.0 $ 289.6 $ 7,901.1 3.7 %

SCHEDULE V--VALUATION AND QUALI

SCHEDULE V--VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE V--VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE V--VALUATION AND QUALIFYING ACCOUNTS Unum Group and Subsidiaries Description Balanceat Beginning of Period Additions Chargedto Costsand Expenses Additions Chargedto Other Accounts(1) Deductions(2) Balanceat End of Period (in millions of dollars) Year Ended December31, 2009 Mortgage loan loss reserve $ - $ 5.5 $ - $ 2.3 $ 3.2 Real estate reserve (deducted from other long-term investments) $ 0.3 $ - $ - $ - $ 0.3 Allowance for doubtful accounts (deducted from accounts and premiums receivable) $ 14.9 $ 4.6 $ 1.0 $ 10.6 $ 9.9 Year Ended December31, 2008 Real estate reserve (deducted from other long-term investments) $ 7.6 $ 0.3 $ - $ 7.6 $ 0.3 Allowance for doubtful accounts (deducted from accounts and premiums receivable) $ 16.9 $ 4.6 $ - $ 6.6 $ 14.9 Year Ended December31, 2007 Mortgage loan loss reserve $ 0.5 $ - $ - $ 0.5 $ - Real estate reserve (deducted from other long-term investments) $ 7.6 $ - $ - $ - $ 7.6 Allowance for doubtful accounts (deducted from accounts and premiums receivable) $ 21.2 $ 1.2 $ 0.2 $ 5.7 $ 16.9 (1) Additions charged to other accounts are comprised of amounts related to fluctuations in the foreign currency exchange rate. (2) Deductions include amounts deemed to reduce exposure of probable losses, amounts applied to specific loans at time of sale/foreclosure, amounts deemed uncollectible, and amounts related to fluctuations in the foreign currency exchange rate.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 24, 2010	Jun. 30, 2009
Trading Symbol	UNM
Entity Registrant Name	Unum Group
Entity Central Index Key	0000005513
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		332,375,870
Entity Public Float			$5,300,000,000