 2016 Outlook Meeting December 17, 2015 | New York Exhibit 99.1 |
 2 Safe Harbor Statement and Non-GAAP Financial Measures Certain information in this presentation constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those not based on historical information, but rather relate to our outlook, future operations, strategies, financial results, or other developments and speak only as of the date made. These forward- looking statements, including statements about our 2016 outlook for sales, premium income, operating earnings, and operating return on equity, under current market conditions and in a more normalized interest rate environment, as well as about weighted average risk-based capital ratios, holding company cash and marketable securities and share repurchases are subject to numerous assumptions, risks, and uncertainties, many of which are beyond our control. The following factors, in addition to other factors mentioned from time to time, may cause actual results to differ materially from those contemplated by the forward-looking statements: (1) sustained periods of low interest rates; (2) fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets due to, among other factors, the rate of unemployment and consumer confidence, the emergence of new diseases, epidemics, or pandemics, new trends and developments in medical treatments, the effectiveness of our claims operational processes, and changes in government programs; (3) unfavorable economic or business conditions, both domestic and foreign; (4) legislative, regulatory, or tax changes, both domestic and foreign, including the effect of potential legislation and increased regulation in the current political environment; (5) investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our liabilities; (6) the failure of cyber or other information security systems, as well as the occurrence of events unanticipated in our disaster recovery systems; (7) increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors; (8) changes in our financial strength and credit ratings; (9) damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures; (10) actual experience that deviates from our assumptions used in pricing, underwriting, and reserving; (11) actual persistency and/or sales growth that is higher or lower than projected; (12) changes in demand for our products due to, among other factors, changes in societal attitudes, the rate of unemployment, consumer confidence, and/or legislative and regulatory changes, including healthcare reform; (13) effectiveness of our risk management program; (14) contingencies and the level and results of litigation; (15) availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us; (16) ineffectiveness of our derivatives hedging programs due to changes in the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation; (17) changes in accounting standards, practices, or policies; (18) fluctuation in foreign currency exchange rates; (19) ability to generate sufficient internal liquidity and/or obtain external financing; (20) recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets; and (21) terrorism, both within the U.S. and abroad, ongoing military actions, and heightened security measures in response to these types of threats. For further discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014, and, to the extent applicable, subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements in this presentation are being made as of the date of this presentation, and Unum Group (“Unum”, or the “Company”) expressly disclaims any obligation to update or revise any forward-looking statement contained herein, even if made available on our website or otherwise. In analyzing performance, Unum sometimes uses non-GAAP financial measures that differ from what is reported under GAAP. This presentation contains non-GAAP financial measures, including before and after-tax operating earnings, after-tax operating earnings per share, operating return on equity, book value per share (excluding accumulated other comprehensive income, or AOCI), and operating revenues. Refer to the Appendix for a reconciliation of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP measures. |
 3 Mike Simonds President and Chief Executive Officer, Unum US Peter O’Donnell President and Chief Executive Officer, Unum UK Tim Arnold President and Chief Executive Officer, Colonial Life Today’s Participants Business Segment Presidents Jack McGarry President and Chief Executive Officer Rick McKenney Executive Vice President and Chief Financial Officer Tom White Senior Vice President, Investor Relations Steve Zabel President, Closed Block Operations Joe Foley Senior Vice President, Corporate Marketing & Public Relations Breege Farrell Executive Vice President and Chief Investment Officer Steve Mitchell Chief Financial Officer, Unum US Other Corporate Officers |
 4 Agenda Introduction State of the Business Financial Performance Unum US Unum UK Colonial Life Closed Block Investment Performance 2016 Outlook Closing Comments Questions and Answers Appendix |
 Introduction |
 6 Introduction WHO WE ARE Leading Provider of Employee Benefits Serving Customers at Challenging Times Disciplined Operator with Consistent Performance Shareholder Friendly while Growing the Company On Track for 2015, Improving Outlook for 2016 |
 7 Trailing Four Quarters Ended September 30, 2015 First Nine Months 2015 Distribution of Operating Earnings* Financial Snapshot Introduction DIVERSIFIED EMPLOYEE BENEFITS PROVIDER * Before tax results excluding corporate segment. |
 8 Introduction STRONG MARKET POSITIONS All market positions based on inforce premiums, 2014 |
 9 Introduction WE PROTECT PEOPLE WHEN THEY NEED IT MOST We protect 25 million policyholders and families We help 178,000 companies attract and retain employees Unum paid $6.7 billion in benefits last year We helped 230,000 individuals return to work |
 10 5.8 million US small businesses are significantly underpenetrated 40 million people in small businesses lack group disability insurance, primarily in the less than 100 lives market Participation in high deductible medical plans has increased by ~10 million people in the past 3 years Existing customer penetration rates are also low for supplemental and voluntary products, and UK group income protection coverage Access to protection for the middle class is disappearing Leveraged to improving economy through payroll growth and wage inflation Introduction THE POTENTIAL TO GROW |
 11 Financial Performance 2015 CONTINUES TREND OF CONSISTENT PERFORMANCE |
 12 Financial Performance 2015 CONTINUES TREND OF CONSISTENT PERFORMANCE * December 31, 2007 common shares outstanding, through September 30, 2015 |
 13 Introduction SEASONED MANAGEMENT TEAM Represents those leaders in attendance at Investor Meeting |
 14 Closing Comments With an Environment of Low interest rates Low wage inflation Weak economic growth LTC challenges We Have Accomplished 8.1% BVPS (Excluding AOCI) growth Stable RBC ratio at ~400% Average ROE of 11-12% Consistent cash flow generation $4.1 billion of capital returned to shareholders |
 15 Closing Comments Good operating businesses Strong market positions Solid financial foundation Substantial leverage to rising interest rates Proven ability to manage through a challenging environment Franchise Positioned for the Future |
 16 Introduction AN OUTLOOK WITH BUILDING MOMENTUM * Consolidated After-Tax Operating Earnings including Corporate Segment |
 State of the Business |
 Financial Performance |
 19 Financial Performance 2015 OUTLOOK UPDATE We continue to expect 2015 full year operating earnings per share growth towards the lower end of our range of 2% to 5% (compared to $3.51 in 2014) 4Q2015 operating trends Sales and premium growth trends remain strong, with continued momentum Generally solid benefits experience Continued pressure on net investment income, partially offset by higher anticipated miscellaneous net investment income No special items or reserve charges expected Solid capital position RBC and holding company cash levels within or above our original outlook Includes First Unum (New York) reserve strengthening of $75 to $100 million Received approval for use of our internal model for Solvency II in the UK, including the Volatility Adjustment and Transitional Measures; we expect no material change to capital requirements or solvency ratios Solid capital generation and return to shareholders $400 million share repurchases year-to-date, and we remain in the market $54 million acquisition of National Dental Plan in the UK 12% dividend increase, just under 20% payout ratio and in-line with the S&P 500 dividend yield |
 20 Financial Performance 2015 CONTINUES TREND OF CONSISTENT PERFORMANCE |
 21 Financial Performance STRONG RETURN ON EQUITY Average equity excludes negative allocation of corporate deficit and will therefore not add to 100% |
 22 Financial Performance IMPROVING GROWTH TRENDS IN OUR CORE BUSINESSES IN 2015 * Total Core Business Segments Sales and premium growth are consistent with our normalized view |
 23 Financial Performance STEADY, FAVORABLE BENEFITS EXPERIENCE *Year-to-Date through September 30, 2015 † Excluding Reserve Adjustments |
 24 Financial Performance STRONG CAPITAL GENERATION * Statutory Net Income for traditional US Insurance Companies † Ending September 30, 2015 |
 25 Financial Performance A TRACK RECORD OF CONSISTENT AND PREDICTABLE CAPITAL DEPLOYMENT *Cumulative % of float based on December 31, 2007 common shares outstanding |
 26 Financial Performance STRONG CAPITAL POSITION *Weighted average risk-based capital ratio for traditional US insurance companies. |
 27 Financial Performance CONSISTENT, STEADY TRENDS IN CAPITAL MANAGEMENT *Includes interest expense and common shareholder dividends |
 28 Financial Performance INCIDENCE AND RECOVERY RATES SUPPORT BEST IN CLASS OPERATING MARGINS Source: GenRe/JHA Profit Study/Unum submission to GenRe |
 29 Financial Performance LOW INTEREST RATES REMAIN A CHALLENGE Pricing Flexibility Discount Rate Adjustments Manageable Investable Cash Flows Disciplined Asset Selection |
 30 Financial Performance STRONG INTEREST MARGINS AGAINST A DECLINING RESERVE BASE |
 31 Our 2015 operating trends have been consistent with our original expectations for the year Our focus on disciplined execution remains a primary driver of our results Premium growth is building momentum and will require additional capital for support Our core businesses continue to generate best-in-class operating margins and strong double-digit ROEs Low interest rates remain a headwind, but we have demonstrated an ability to manage through this environment Financial Performance CLOSING COMMENTS |
 Unum US |
 33 Unum US BUSINESS SNAPSHOT Primary Products Group Long-term and Short-term Disability Group Life and AD&D Voluntary Benefits Individual Disability Benefits Top 5 market share position across all major product categories Market Characteristics Employers remain committed to offering an array of benefit choices The consumer need for financial protection is increasing due to healthcare changes Technology enabling new access Interest rates remain a pressure point * 4 Quarters Ending 9/30/2015 Sales Distribution* (9 Month 2015 Growth) |
 34 Excellent client service – 93% satisfaction Unmatched claims expertise – 2,500 benefits professionals Disciplined pricing and underwriting using largest, most diverse private data set Emerging leader in digital space Strong persistency – 90% YTD 2015 Predictable benefit ratios Efficiency gains enabling investment Accelerating growth with additional opportunity in existing client base; ~2.5 products per client today vs ~7 per fully integrated client Unum US UNIQUE IN FINANCIAL PROTECTION EMPLOYEE BENEFITS Source: GenRe 2013 |
 35 Unum US GROUP BENEFITS: CHANGING MARKETPLACE Growth Drivers Growing need among consumers for financial protection Expanding voluntary protection markets Leveraged to economic expansion New digital channels emerging Pressures Interest rates remain low, necessitating continued price increases Market pricing and underwriting quality are mixed Multiple new entrants *Includes Disability, Group Life, and Supplemental and Voluntary Health Source: SNL Financial and Gen Re |
 36 Unum US GROUP BENEFITS MARKETPLACE Source: Eastbridge |
 37 Unum US STRATEGY |
 38 Unum US GROWTH THROUGH CONSUMER FOCUS Dedicated consumer marketing team with leadership from outside the industry Market tests leveraging behavioral economics yielded participation improvements of 7 points Increased use of technology to facilitate optimal counselor placement, auto- scheduling, education and post-purchase communications |
 39 Unum US GROWTH BY ENGAGING CLIENTS We are investing in new technology, service models and products to improve the client experience and facilitate cross-selling |
 40 Compliance with ACA and greater complexity driving increased demand for HR technology o Cloud-based solutions enabling a move down market o Potential disrupters combining technology and benefits advice in an emerging digital channel Unum US STRONG DIGITAL PARTNERSHIPS Market Trends Unum is well positioned with 50+ connections to digital platforms o Dedicated digital channel team o $800M inforce premium through technology connections o Unique position as the market leader across product and employer segments Unum Position |
 41 Unum US 2016 BUSINESS OUTLOOK Our strong overall results reaffirm the validity of our key strategies around consumers, clients, and collaborative partnerships We anticipate operating earnings growth of 1-3% Disciplined top line growth Consistent risk management Improving operational efficiency Sustained low interest rate environment requires on-going rate increases, which temper our short-term growth expectations We continue to leverage technology to improve consumer engagement and the customer experience while expanding our ability to connect with all technology partners We remain committed to our strategy with foundational priorities of risk management, people development and strong values |
 42 Unum US 2016 FINANCIAL OUTLOOK |
 Unum UK |
 44 Unum UK BUSINESS SNAPSHOT Primary Products Group Income Protection Group Life Supplementary and Voluntary products: Group Critical Illness, Dental, Individual Income Protection (Closed) Market Share # 1 Group Income Protection # 4 Group Life # 3 Group Critical Illness # 2 Dental Market Scope Over 10,000 employers served 1.6 million employees insured (including over 150,000 new dental customers) ** Calculated in U.S. dollars * 4 Quarters Ending 9/30/2015 *** Group Life Non-Core = Large case and segments closed to new business Premium Distribution * (9 Month 2015 Growth) |
 45 Unum UK Drive growth of Group Income Protection market while maintaining profitability and return-on-equity levels Profitably grow Group Life and Group Critical Illness, develop the UK short-term disability market and grow dental Diversify Unum UK’s products and services portfolio through M&A and partnerships Enhance the Customer Experience STRATEGIC OVERVIEW Grow Income Protection Block Grow other Employee Benefits Products Expand into Adjacent Areas Simplify our Processes and Operations Develop Talent and Leadership Optimise Capital Efficiency under new Solvency II Regime To be working Britain’s first choice for a back-up plan Vision |
 46 Grow the Income Protection Block - increase the number of ‘first-time buyers’ and broker relationships, broaden distribution capabilities (e.g. platforms), and continue to mitigate interest rate pressures through rate actions Grow other Employee Benefits Products - increase share in Group Life and Critical Illness, capitalize on the growth opportunity in Dental and expand into adjacent areas Continue to Enhance the Customer Experience - simplify our products, communications and processes, underpinned by the implementation of a new administration platform Optimize Capital Efficiency under the new Solvency II Regime - utilize our tailored, risk-based capital modeling capabilities to maximize returns Continue to Develop Talent and Leadership – help our employees grow and develop the skills needed to deal with a dynamic environment Unum UK 2016 KEY PRIORITIES |
 47 Unum UK GROWTH MOMENTUM *Quarter-to-date |
 48 NDP provides dental insurance to the employees of large and medium sized businesses in the UK and is one of only four dental providers of scale NDP offers indemnity dental insurance plans with the flexibility to use any dentist, anywhere NDP offers both strategic and financial benefits to Unum UK The dental insurance market is growing at ~7.5% CAGR (2008-2013), with strong employee demand for dental products in the workplace NDP has over 500 employer customers, who employ 1.5M employees, and insures 150,000 individuals Cross-selling Opportunity: Unum UK has ~10,000 group risk employer customers, creating a significant growth opportunity for dental NDP primarily distributes products through brokers, with a small direct channel Average customer life of 9.5 years and 93% persistency NDP offers both employer paid products and flexible employee funded options Unum UK NATIONAL DENTAL PLAN ACQUISITION |
 49 Unum UK 2016 FINANCIAL OUTLOOK |
 Colonial Life |
 51 Colonial Life BUSINESS SNAPSHOT Primary Products Accident, Sickness and Disability Life (Term, Universal, Whole) Cancer and Critical Illness Market Share 1 # 5 Voluntary Carrier with 6% market share Product Sales: o # 2 in STD and Cancer o # 3 in Accident o # 4 in Hospital Indemnity, UL and WL, and Critical Illness Size and Scale Over 80,000 clients served Over 3.5 million policies in force Over 10,000 career agents and 14,000 brokers under contract * 4 Quarters Ending 9/30/2015 1 Market share based on Eastbridge U.S. Worksite /Voluntary Carrier Sales Report for 2014 Sales Distribution * (9 Month 2015 Growth) |
 52 Colonial Life 2016 BUSINESS OUTLOOK Our 2015 sales demonstrate the success of our strategic initiatives and investments in sales leadership, distribution effectiveness and sales support. Strong sales fundamentals through third quarter 2015: o New accounts up 10% o New account sales premium up 4% and existing account sales up 10% Key drivers in our 2016 plan: Strategic growth markets Distribution expansion Products and services We will continue to leverage cross-enterprise assets and centers of excellence to successfully meet the dynamic market needs 2016 operating earnings growth is expected to be in the 2-4% range, with continued strong profit margins, operating ROEs, and strong cash generation |
 53 Colonial Life MARKET POTENTIAL AND OPPORTUNITIES The total market opportunity within the US benefits market is estimated at $25-35 billion Increase employer penetration, especially below 100 lives Increase employee penetration in offered products Cross-sell additional products to employees Part-time workers and contractors Source: Unum Employee Survey, BLS, Unum analysis |
 54 Colonial Life Grow and develop our distribution with a focus on strategic growth markets Provide simple, modern and personal benefits experiences Deliver new tools and capabilities that will allow us to achieve operational excellence Talent STRATEGIC OVERVIEW Growth Customer Experience Productivity Strengthen our talent to position the business for future success To protect 5 million people by 2020 Vision |
 55 Colonial Life DIVERSIFIED ENROLLMENT TECHNOLOGY SOLUTIONS Scheduling Telephonic Virtual counselors On-site counselors Click 2 Call Click 2 Chat On-demand counselor assignments and scheduling Live Enrollment Assistance Need a system? We have one! Already have a system? We speak your language! Connectivity |
 56 Colonial Life 2015 FINANCIAL OUTLOOK |
 Closed Block |
 58 Closed Block BUSINESS SNAPSHOT Legacy Discontinued Blocks Individual Disability (ID) Long-Term Care (LTC) Distribution ID Sales discontinued in mid-1990’s ILTC Sales discontinued in 2009 GLTC Sales discontinued in 2011 * 4 Quarters Ending 9/30/2015 GAAP Net Reserves % Incurred Claim Reserves* LTC $8,525 14% ID 9,336 92% Other 1,174 3% Total $19,035 In $MM, as of September 30, 2015 *% of Total Reserves Premium Distribution * (9 Month 2015 Growth) |
 59 As of 6/30/2015 Inforce Demographics Interest-Adjusted Loss Ratio Closed Block LTC INFORCE PREMIUM AND RISK EXPERIENCE ILTC GLTC Total In Force Premium ($,M) 309 337 646 In Force Lives (K) 158 848 1,006 In Force Policies (K) 158 8.8 167 Avg. Attained Age 70 51 54 Avg. Issue Age 56 45 46 % Lifetime (only) 36.9% 4.9% 10% Avg. Premium ($) 1,955 397 602 Avg. Daily Benefit ($) 134 82 87 Avg. Benefit Period (Yrs Excl. Lifetime) 4.5 3.5 3.6 91.2% 87.8% 91.3% 89.9% 89.5% 90.1% 89.6% 89.3% 84.7% 80.8% 88.5% 89.6% 87.3% 83.4% 89.9% 75% 80% 85% 90% 95% |
 60 Closed Block LTC BLOCK CHARACTERISTICS Performance since 2014 Reserve Update Reserve Adequacy Studies complete, and we feel comfortable with our position Interest Rates – continue to be a pressure point, but 2015 in-line with assumptions o Interest rates assumed flat for five years, then gradual rise over subsequent five years In-force rate increases progressing well, implementing “landing spot” Mortality/Morbidity – interest-adjusted loss ratio within our target of 85-90% Utilization Rates – we are not impacted by utilization rates as our policies are primarily indemnity, not reimbursement Other Considerations More than half of premiums are Group LTC, which have more favorable characteristics, and persistency is actually running better than expected We unilaterally benefit from higher interest rates as we do not benefit from the impact of low inflation on reimbursement/utilization rates Statutory reserves exceed GAAP by a comfortable margin Re-domesticated Fairwind captive in 2013; reserves are generally consistent with U.S. statutory accounting |
 61 LTC Rate Increases Continue to pursue justified rate increases Offer enhanced policyholder options Lead regulatory outreach program Operational Effectiveness High quality claims management Cost efficient customer service Effective communication and implementation of rate increases Financial Analysis Use of experience analysis tools to manage the blocks and empower decision making and action Capital Management Continue to invest in modeling and analytical capabilities Monitor capital markets developments Closed Block 2016 KEY PRIORITIES |
 62 Closed Block 2015 FINANCIAL OUTLOOK |
 Investment Performance |
 64 Asset Quality Interest Rate Management Investment Performance |
 65 Investment Performance INVESTED ASSET QUALITY Investment grade bonds remain our core holding. 1 Formerly 5.12% due to Lehman; Moody’s has subsequently removed it *Trailing 12 month default rates |
 66 Investment Performance IMPLICATIONS OF LOW INTEREST RATES |
 67 Investment Performance HIGHLY RATED PORTFOLIO Source: SNL Financial |
 68 Investment Performance ANALYSIS OF ENERGY EXPOSURE *Includes Contract Drillers Exposure as a percent of total fixed maturity securities at amortized cost |
 69 Pricing Flexibility Discount Rate Adjustments Manageable Investable Cash Flows Disciplined Asset Selection Investment Performance MANAGING LOW INTEREST RATES |
 70 Investment Performance MANAGEABLE PLANNED CASH FLOWS |
 2016 Outlook |
 72 2016 Outlook KEY MESSAGES Continued favorable premium growth trends, with strong persistency Expect generally stable benefits experience through disciplined pricing, risk selection and renewals Ongoing pressure on portfolio yields and net investment income from lower new money yields Expected tax rate range of 31-32% Completed an extensive review of our approach to allocating required capital and associated investment income, which aligns with NAIC reporting requirements No change to overall results or returns Small impacts to multiple lines: only notable change for Unum US Group Life Operating EPS growth of 4% to 7% Continued steady capital generation and deployment: Primary focus on funding the accelerating growth momentum of our business 2016 share repurchases in-line with 2015 activity Increasing dividend |
 73 2016 Outlook FACTORS IMPACTING OUR 2016 OUTLOOK |
 74 2016 Outlook CAPITAL OUTLOOK |
 75 Introduction AN OUTLOOK WITH BUILDING MOMENTUM * Consolidated After-Tax Operating Earnings including Corporate Segment |
 Closing Comments |
 77 Closing Comments Good operating businesses Strong market positions Solid financial foundation Substantial leverage to rising interest rates Proven ability to manage through a challenging environment Franchise Positioned for the Future |
 Questions and Answers |
 Appendix Reconciliation of Non-GAAP Financial Measures |
 80 Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Four Quarters Ended September 30, 2015 (in millions) After-tax Operating Earnings 896.1 $ Net Realized Investment Loss, Net of Tax (34.8) Non-operating Retirement-related Loss, Net of Tax (48.7) Long-term Care Reserve Increase, Net of Tax (453.8) Net Income 358.8 $ Four Quarters Ended September 30, 2015 (in millions) Total Operating Revenue 10,706.3 $ Net Realized Investment Loss (58.4) Total Revenue 10,647.9 $ After-tax Average Operating Allocated Operating Income (Loss) Equity (1) Return on Equity Four Quarters Ended September 30, 2015 Unum US 555.7 $ 4,223.4 $ Unum UK 111.6 670.8 Colonial Life 198.7 1,186.3 Core Operating Segments 866.0 6,080.5 Closed Block 79.8 2,953.1 Corporate (49.7) (839.3) Total 896.1 $ 8,194.3 $ 10.9% Nine Months Ended September 30, 2015 Unum US 417.1 $ 4,222.1 $ 13.2% Unum UK 82.3 669.7 16.4% Colonial Life 150.6 1,200.8 16.7% Core Operating Segments 650.0 6,092.6 14.2% Closed Block 60.4 2,929.2 2.8% Corporate (40.0) (1,092.8) Total 670.4 $ 7,929.0 $ 11.3% (1) Excludes net unrealized gain on securities and net gain on cash flow hedges and is calculated using the adjusted stockholders' equity balances presented below. (in millions) |
 81 Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Nine Months Ended September 30, 2015 (in millions) After-tax Operating Income 670.4 $ Net Realized Investment Loss, Net of Tax (23.6) Non-operating Retirement-related Loss, Net of Tax (5.8) Net Income 641.0 $ December 31 2015 2014 2014 Total Stockholders' Equity, As Reported 8,581.1 $ 9,216.6 $ 8,521.9 $ Net Unrealized Gain on Securities 158.6 462.0 290.3 Net Gain on Cash Flow Hedges 405.1 383.5 391.0 Total Stockholders' Equity, As Adjusted 8,017.4 $ 8,371.1 $ 7,840.6 $ Average Equity, As Adjusted Four Quarters Ended September 30, 2015 8,194.3 $ Nine Months Ended September 30, 2015 7,929.0 $ September 30 2015 2014 2013 2012 2011 2010 2009 2008 Total Stockholders' Equity, As Reported (Book Value) 35.25 $ 33.78 $ 33.23 $ 31.84 $ 27.91 $ 26.80 $ 24.25 $ 17.94 $ Net Unrealized Gain on Securities 0.65 1.15 0.52 3.23 2.11 1.31 1.16 (2.53) Net Gain on Cash Flow Hedges 1.66 1.55 1.52 1.48 1.39 1.14 1.12 1.38 Subtotal 32.94 31.08 31.19 27.13 24.41 24.35 21.97 19.09 Foreign Currency Translation Adjustment (0.60) (0.45) (0.18) (0.26) (0.41) (0.34) (0.23) (0.52) Subtotal 33.54 31.53 31.37 27.39 24.82 24.69 22.20 19.61 Unrecognized Pension and Postretirement Benefit Costs (1.62) (1.59) (0.88) (2.13) (1.51) (1.00) (1.00) (1.23) Total Stockholders' Equity, Excluding AOCI 35.16 $ 33.12 $ 32.25 $ 29.52 $ 26.33 $ 25.69 $ 23.20 $ 20.84 $ September 30 (in millions) December 31 (per share) |
 82 Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2015 2014 2014 2013 2012 2011 2010 2009 2008 After-tax Operating Income 2.69 $ 2.61 $ 3.51 $ 3.28 $ 3.13 $ 2.98 $ 2.73 $ 2.64 $ 2.54 $ Net Realized Investment Gain (Loss), Net of Tax (0.10) 0.10 0.05 0.02 0.13 (0.01) 0.05 - (0.89) Non-operating Retirement-related Loss, Net of Tax (0.02) (0.01) (0.18) (0.08) (0.11) (0.07) (0.06) (0.09) (0.03) Costs Related to Early Retirement of Debt, Net of Tax - (0.04) (0.04) - - - - - - Unclaimed Death Benefits Reserve Increase, Net of Tax - - - (0.24) - - - - - Group Life Waiver of Premium Benefit Reserve Reduction, Net of Tax - - - 0.21 - - - - - Deferred Acquisition Costs Impairment and Reserve Charges for Long-term Care Closed Block, Net of Tax - - (1.77) - - (1.65) - - - �� - - - - - (0.39) - - - Special Tax Items and Debt Extinguishment Costs - - - - - 0.08 (0.03) - - Net Income 2.57 $ 2.66 $ 1.57 $ 3.19 $ 3.15 $ 0.94 $ 2.69 $ 2.55 $ 1.62 $ (in millions) Benefit Ratio (in millions) Benefit Ratio Year Ended December 31, 2013 Premium Income 4,517.1 $ 1,232.2 $ Benefits and Change Reserves for Future Benefits 3,222.4 667.0 Unclaimed Death Benefits Reserve Increase (75.4) (20.1) Group Life Waiver of Premium Benefit Reserve Reduction 85.0 - Benefits and Change in Reserves for Future Benefits, Excluding Reserve Adjustments 3,232.0 71.6% 646.9 52.5% Unum US Nine Months Ended September 30 (per diluted common share) Year Ended December 31 Colonial Life Reserve Charge for Individual Disability Closed Block, Net of Tax |
 83 Appendix RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Four Quarters Ended September 30, 2015 (in millions) Operating Income (Loss) by Segment Unum US 845.3 $ Unum UK 141.8 Colonial Life 305.5 Closed Block 120.4 Corporate (114.6) Total Before Tax Operating Earnings 1,298.4 Net Realized Investment Loss (58.4) Non-operating Retirement-related Loss (74.7) Long-term Care Reserve Increase (698.2) Income Tax (108.3) Net Income 358.8 $ Nine Months Ended Percentage of September 30, 2015 Before Tax (in millions) Operating Earnings (2) Operating Income (Loss) by Segment Unum US Group Disability 206.3 $ 19% Group Life and Accidental Death and Dismemberment 170.6 16% Supplemental and Voluntary 258.9 24% Total Unum US 635.8 Unum UK 103.6 10% Colonial Life 231.5 22% Closed Block 91.0 9% Before Tax Operating Earnings, Excluding Corporate Segment 1,061.9 Corporate (90.2) Total Before Tax Operating Earnings 971.7 Net Realized Investment Loss (41.1) Non-operating Retirement-related Loss (8.9) Income Tax (280.7) Net Income 641.0 $ (2) Percentages are calculated excluding the Corporate Segment |