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

Attached files

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8-K - UNUM GROUP 8-K - Unum Group	a6589506.htm
EX-99.3 - EXHIBIT 99.3 - Unum Group	a6589506ex99_3.htm
EX-99.1 - EXHIBIT 99.1 - Unum Group	a6589506ex99_1.htm

Exhibit 99.2

Unum Group
Statistical Supplement Fourth Quarter 2010

TABLE OF CONTENTS

(dollars in millions, except share data and where noted)
Interim Results are Unaudited

	Page

Financial Highlights	1
Consolidated Statements of Income	2
Sales Data	3
Consolidated Balance Sheets	4
Financial Results by Segment	5
Quarterly Historical Financial Results by Segment	6
Financial Results and Selected Statistics by Segment
Unum US	7
Unum UK	8
Colonial Life	9
Individual Disability - Closed Block	10
Corporate and Other	11
Reserves	12
Investment Fact Sheets	13
Statutory-Basis Financial Information	14
Notes to Statistical Supplement	15

Throughout this supplement, segment operating results exclude income taxes and realized investment gains and losses.

See "Notes to Statistical Supplement" on page 15 for a discussion of non-GAAP financial measures and significant transactions and events.

Unum Group Financial Highlights

	Three Months Ended					Year Ended
	12/31/2010		12/31/2009			12/31/2010		12/31/2009		12/31/2008
Financial Results

Premium Income	$	1,868.2	$	1,865.7		$	7,431.4	$	7,475.5	$	7,783.3

Segment Operating Revenue	$	2,565.6	$	2,522.5		$	10,168.5	$	10,079.3	$	10,448.2
Net Realized Investment Gain (Loss)		27.5		(25.9	)		24.7		11.7		(465.9	)

Revenue	$	2,593.1	$	2,496.6		$	10,193.2	$	10,091.0	$	9,982.3

Net Income	$	225.8	$	199.4		$	886.1	$	852.6	$	553.2

Assets						$	57,307.7	$	54,477.0	$	49,417.4

Stockholders' Equity						$	8,944.4	$	8,500.1	$	6,397.9

2010

● Full year 2010 results include a non-cash tax charge of $10.2 million to reflect the impact of a tax law change.

Unum Group Financial Highlights

	Three Months Ended				Year Ended
	12/31/2010		12/31/2009		12/31/2010		12/31/2009		12/31/2008
Per Common Share Information

Net Income
Assuming Dilution	$	0.71	$	0.60	$	2.71	$	2.57	$	1.62
Basic	$	0.71	$	0.60	$	2.72	$	2.57	$	1.62

Dividends Paid	$	0.0925	$	0.0825	$	0.350	$	0.315	$	0.300

Book Value per Share:
As Reported					$	28.25	$	25.62	$	19.32

Excluding Net Unrealized Gain (Loss) on Securities
and Net Gain on Cash Flow Hedges					$	25.82	$	23.36	$	20.45

Excluding Foreign Currency Translation Adjustment					$	26.17	$	23.60	$	20.99

Excluding Unrecognized Pension and Postretirement
Benefit Costs					$	27.17	$	24.59	$	22.22

Price (UNM closing price on last trading day of period)					$	24.22	$	19.52	$	18.60

See page 4 of this statistical supplement for detail on the components of AOCI excluded from Total Stockholders' Equity in computing the book value per share measures listed above. Total Stockholders' Equity, AOCI, Foreign Currency Translation Adjustment, Unrecognized Pension and Postretirement Benefit Costs, Net Unrealized Loss on Securities and Net Gain on Cash Flow Hedges at December 31, 2008 are $6,397.9 million, $(958.2) million, $(177.6) million, $(406.5) million, $(832.6) million, and $458.5 million, respectively.

1.1

Unum Group Consolidated Statements of Income

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Revenue
Premium Income	$	1,868.2		$	1,865.7		$	7,431.4		$	7,475.5		$	7,783.3
Net Investment Income		634.3			595.7			2,495.5			2,346.6			2,389.0
Net Realized Investment Gain (Loss)		27.5			(25.9	)		24.7			11.7			(465.9	)
Other Income		63.1			61.1			241.6			257.2			275.9
Total Revenue		2,593.1			2,496.6			10,193.2			10,091.0			9,982.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		1,618.1			1,566.6			6,354.1			6,291.6			6,626.4
Commissions		215.3			204.9			855.4			837.1			853.3
Interest and Debt Expense - Non-recourse Debt		3.1			3.4			12.9			18.6			39.3
Interest and Debt Expense - All Other Debt		36.0			31.1			128.9			106.8			117.4
Deferral of Acquisition Costs		(152.2	)		(147.8	)		(607.7	)		(593.6	)		(590.9	)
Amortization of Deferred Acquisition Costs		139.4			131.2			547.1			526.2			519.1
Other Expenses		397.9			411.3			1,571.2			1,612.0			1,593.7
Total Benefits and Expenses		2,257.6			2,200.7			8,861.9			8,798.7			9,158.3

Income from Continuing Operations Before
Income Taxes		335.5			295.9			1,331.3			1,292.3			824.0

Income Taxes		109.7			96.5			445.2			439.7			270.8

Net Income	$	225.8		$	199.4		$	886.1		$	852.6		$	553.2

Average Number of Shares Outstanding
Basic		316,968,173			331,672,760			325,839,020			331,266,247			341,022,792
Dilutive Securities:
Options and Other Nonvested Stock Awards		1,494,767			1,325,720			1,382,036			869,934			537,505
Assuming Dilution		318,462,940			332,998,480			327,221,056			332,136,181			341,560,297

Actual Number of Shares Outstanding								316,573,452			331,809,247			331,120,345

Unum Group Sales Data

	Three Months Ended							Year Ended
	12/31/2010		12/31/2009		% Change			12/31/2010		12/31/2009		12/31/2008

Unum US Segment
Fully Insured Products	$	247.7	$	247.8		-	%	$	669.4	$	709.2	$	701.5
Administrative Services
Only (ASO) Products		4.5		4.5		-			6.3		7.7		7.2
Total Unum US Segment		252.2		252.3		-			675.7		716.9		708.7

Unum UK Segment		32.6		42.0		(22.4	)		119.2		123.2		99.5

Colonial Life Segment		121.3		119.7		1.3			358.8		343.8		340.2

Individual Disability -
Closed Block Segment		0.2		0.3		(33.3	)		0.8		1.5		2.4

Total Sales	$	406.3	$	414.3		(1.9	)	$	1,154.5	$	1,185.4	$	1,150.8

Unum Group Sales Data for Unum US Segment

	Three Months Ended							Year Ended
	12/31/2010		12/31/2009		% Change			12/31/2010		12/31/2009		12/31/2008
Sales by Product

Fully Insured Products
Group Disability, Group Life, and AD&D
Group Long-term Disability	$	67.3	$	75.4		(10.7	)%	$	148.2	$	182.1	$	190.3
Group Short-term Disability		37.4		34.8		7.5			80.3		83.9		71.5
Group Life		77.6		76.5		1.4			166.9		184.9		165.4
AD&D		8.3		7.8		6.4			18.1		18.7		17.2
Subtotal		190.6		194.5		(2.0	)		413.5		469.6		444.4
Supplemental and Voluntary
Individual Disability - Recently Issued		11.2		12.1		(7.4	)		42.7		51.6		57.9
Group Long-term Care		9.5		7.2		31.9			25.8		22.4		32.2
Individual Long-term Care		0.1		1.0		(90.0	)		0.2		3.7		8.4
Voluntary Benefits		36.3		33.0		10.0			187.2		161.9		158.6
Subtotal		57.1		53.3		7.1			255.9		239.6		257.1

Total Fully Insured Products		247.7		247.8		-			669.4		709.2		701.5

ASO Products		4.5		4.5		-			6.3		7.7		7.2

Total Sales	$	252.2	$	252.3		-		$	675.7	$	716.9	$	708.7

Sales by Market Sector

Group Disability, Group Life, and AD&D
Core Market (< 2,000 lives)	$	131.8	$	139.5		(5.5	)%	$	294.0	$	320.6	$	297.2
Large Case Market		58.8		55.0		6.9			119.5		149.0		147.2
Subtotal		190.6		194.5		(2.0	)		413.5		469.6		444.4

Supplemental and Voluntary		57.1		53.3		7.1			255.9		239.6		257.1

Total Fully Insured Products		247.7		247.8		-			669.4		709.2		701.5

ASO Products		4.5		4.5		-			6.3		7.7		7.2

Total Sales	$	252.2	$	252.3		-		$	675.7	$	716.9	$	708.7

3.1

Unum Group Sales Data for Unum UK Segment

	Three Months Ended							Year Ended
	12/31/2010		12/31/2009		% Change			12/31/2010		12/31/2009		12/31/2008

Long-term Disability	$	14.1	$	15.2		(7.2	)%	$	53.1	$	56.8	$	68.8
Group Life		16.3		22.0		(25.9	)		57.3		53.8		19.6
Supplemental and Voluntary		2.2		4.8		(54.2	)		8.8		12.6		11.1

Total Sales	$	32.6	$	42.0		(22.4	)	$	119.2	$	123.2	$	99.5

(in millions of pounds)

Long-term Disability	£	9.0	£	9.4		(4.3	)%	£	34.4	£	36.5	£	37.6
Group Life		10.4		13.4		(22.4	)		37.1		33.4		10.9
Supplemental and Voluntary		1.3		2.9		(55.2	)		5.7		8.0		6.0

Total Sales	£	20.7	£	25.7		(19.5	)	£	77.2	£	77.9	£	54.5


Unum Group Sales Data for Colonial Life Segment

	Three Months Ended							Year Ended
	12/31/2010		12/31/2009		% Change			12/31/2010		12/31/2009		12/31/2008

Accident, Sickness, and Disability	$	79.0	$	75.5		4.6	%	$	237.4	$	221.1	$	222.1
Life		20.9		23.6		(11.4	)		65.7		68.3		64.0
Cancer and Critical Illness		21.4		20.6		3.9			55.7		54.4		54.1

Total Sales	$	121.3	$	119.7		1.3		$	358.8	$	343.8	$	340.2

3.2

Unum Group Consolidated Balance Sheets

	December 31,
	2010			2009
Assets
Investments
Fixed Maturity Securities	$	40,035.6		$	37,914.4
Mortgage Loans		1,516.8			1,404.0
Policy Loans		2,996.1			2,878.0
Other Long-term Investments		529.3			233.5
Short-term Investments		1,163.1			865.5
Total Investments		46,240.9			43,295.4

Cash and Bank Deposits		53.6			71.6
Accounts and Premiums Receivable		1,665.8			1,732.4
Reinsurance Recoverable		4,827.9			4,996.9
Accrued Investment Income		669.8			642.5
Deferred Acquisition Costs		2,521.1			2,482.5
Goodwill		201.2			201.6
Property and Equipment		476.8			443.5
Other Assets		650.6			610.6

Total Assets	$	57,307.7		$	54,477.0

Liabilities
Policy and Contract Benefits	$	1,565.0		$	1,736.9
Reserves for Future Policy and Contract Benefits		39,715.0			37,740.8
Unearned Premiums		436.7			452.0
Other Policyholders' Funds		1,669.7			1,662.3
Income Tax Payable		135.7			114.5
Deferred Income Tax		417.2			273.2
Short-term Debt		225.1			-
Long-term Debt - Non-recourse		716.9			785.2
Long-term Debt - All Other		1,914.4			1,764.4
Other Liabilities		1,567.6			1,447.6

Total Liabilities		48,363.3			45,976.9

Stockholders' Equity
Common Stock		36.5			36.4
Additional Paid-in Capital		2,615.4			2,587.4
Accumulated Other Comprehensive Income (Loss)
Net Unrealized Gain on Securities		410.4			379.6
Net Gain on Cash Flow Hedges		361.0			370.8
Foreign Currency Translation Adjustment		(110.9	)		(78.7	)
Unrecognized Pension and Postretirement Benefit Costs		(318.6	)		(330.7	)
Retained Earnings		7,060.8			6,289.5
Treasury Stock		(1,110.2	)		(754.2	)

Total Stockholders' Equity		8,944.4			8,500.1

Total Liabilities and Stockholders' Equity	$	57,307.7		$	54,477.0

Unum Group Deferred Acquisition Costs by Segment

	Unum US			Unum UK			Colonial Life			Consolidated

Balances at December 31, 2007	$	1,642.5		$	69.6		$	669.8		$	2,381.9
Capitalized		329.7			37.4			223.8			590.9
Amortized		(320.3	)		(32.4	)		(166.4	)		(519.1	)
Adjustment Related to Unrealized Investment Gains/Losses		9.9			-			28.7			38.6
Foreign Currency		-			(19.9	)		-			(19.9	)
Balances at December 31, 2008		1,661.8			54.7			755.9			2,472.4
Capitalized		335.5			29.1			229.0			593.6
Amortized		(317.2	)		(30.5	)		(178.5	)		(526.2	)
Adjustment Related to Unrealized Investment Gains/Losses		(17.7	)		-			(45.2	)		(62.9	)
Foreign Currency		-			5.6			-			5.6
Balances at December 31, 2009		1,662.4			58.9			761.2			2,482.5
Capitalized		333.0			28.3			246.4			607.7
Amortized		(332.9	)		(27.0	)		(187.2	)		(547.1	)
Adjustment Related to Unrealized Investment Gains/Losses		(4.6	)		-			(15.4	)		(20.0	)
Foreign Currency		-			(2.0	)		-			(2.0	)
Balances at December 31, 2010	$	1,657.9		$	58.2		$	805.0		$	2,521.1

4.1

Unum Group Balance Sheets by Segment - December 31, 2010

	Unum US
			Group Life
			and Accidental		Supplemental								Individual
	Group		Death &		and		Total				Colonial		Disability -		Corporate
	Disability		Dismemberment		Voluntary		Unum US		Unum UK		Life		Closed Block		and Other		Consolidated
Assets
Investments	$	9,965.9	$	2,326.0	$	9,694.1	$	21,986.0	$	3,042.0	$	2,007.8	$	12,470.0	$	6,735.1	$	46,240.9
Deferred Acquisition Costs		119.0		93.8		1,445.1		1,657.9		58.2		805.0		-		-		2,521.1
Goodwill		2.5		-		187.5		190.0		11.2		-		-		-		201.2
All Other		718.9		186.2		137.9		1,043.0		274.9		234.5		3,039.1		3,753.0		8,344.5
Total Assets	$	10,806.3	$	2,606.0	$	11,464.6	$	24,876.9	$	3,386.3	$	3,047.3	$	15,509.1	$	10,488.1	$	57,307.7

Liabilities
Reserves and Policyholder Benefits	$	8,793.9	$	1,647.9	$	8,326.6	$	18,768.4	$	2,391.2	$	1,660.8	$	13,168.5	$	7,397.5	$	43,386.4
Debt		82.5		-		-		82.5		-		-		634.4		2,139.5		2,856.4
All Other		302.9		53.5		451.2		807.6		109.4		242.1		200.3		761.1		2,120.5
Total Liabilities		9,179.3		1,701.4		8,777.8		19,658.5		2,500.6		1,902.9		14,003.2		10,298.1		48,363.3

Other Allocated Stockholders' Equity		1,535.8		867.0		2,624.2		5,027.0		757.7		1,071.0		1,310.2		7.1		8,173.0
Net Unrealized Gain/Loss on Securities and
Net Gain on Cash Flow Hedges		91.2		37.6		62.6		191.4		128.0		73.4		195.7		182.9		771.4
Total Allocated Stockholders' Equity		1,627.0		904.6		2,686.8		5,218.4		885.7		1,144.4		1,505.9		190.0		8,944.4
Total Liabilities and Allocated
Stockholders' Equity	$	10,806.3	$	2,606.0	$	11,464.6	$	24,876.9	$	3,386.3	$	3,047.3	$	15,509.1	$	10,488.1	$	57,307.7

Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with the Company's target capital levels for regulatory and rating agency purposes. This formula is modified periodically to recognize changes in the views of capital requirements.

4.2

Unum Group Balance Sheets by Segment - December 31, 2009

	Unum US
			Group Life
			and Accidental		Supplemental								Individual
	Group		Death &		and		Total				Colonial		Disability -		Corporate
	Disability		Dismemberment		Voluntary		Unum US		Unum UK		Life		Closed Block		and Other			Consolidated
Assets
Investments	$	10,072.4	$	2,186.4	$	8,289.1	$	20,547.9	$	3,006.1	$	1,838.4	$	12,186.6	$	5,716.4		$	43,295.4
Deferred Acquisition Costs		123.5		87.8		1,451.1		1,662.4		58.9		761.2		-		-			2,482.5
Goodwill		2.5		-		187.5		190.0		11.6		-		-		-			201.6
All Other		593.7		142.2		203.7		939.6		204.1		206.1		3,052.2		4,095.5			8,497.5
Total Assets	$	10,792.1	$	2,416.4	$	10,131.4	$	23,339.9	$	3,280.7	$	2,805.7	$	15,238.8	$	9,811.9		$	54,477.0

Liabilities
Reserves and Policyholder Benefits	$	8,726.4	$	1,536.0	$	6,957.1	$	17,219.5	$	2,352.0	$	1,587.5	$	12,952.7	$	7,480.3		$	41,592.0
Debt		92.5		-		-		92.5		-		-		692.7		1,764.4			2,549.6
All Other		186.4		12.3		469.3		668.0		210.7		183.1		153.7		619.8			1,835.3
Total Liabilities		9,005.3		1,548.3		7,426.4		17,980.0		2,562.7		1,770.6		13,799.1		9,864.5			45,976.9

Other Allocated Stockholders' Equity		1,715.0		842.9		2,439.9		4,997.8		639.8		993.0		1,318.5		(199.4	)		7,749.7
Net Unrealized Gain/Loss on Securities and
Net Gain on Cash Flow Hedges		71.8		25.2		265.1		362.1		78.2		42.1		121.2		146.8			750.4
Total Allocated Stockholders' Equity		1,786.8		868.1		2,705.0		5,359.9		718.0		1,035.1		1,439.7		(52.6	)		8,500.1
Total Liabilities and Allocated
Stockholders' Equity	$	10,792.1	$	2,416.4	$	10,131.4	$	23,339.9	$	3,280.7	$	2,805.7	$	15,238.8	$	9,811.9		$	54,477.0

4.3

Unum Group Financial Results by Segment

	Three Months Ended							Year Ended
	12/31/2010		12/31/2009		% Change			12/31/2010		12/31/2009		% Change
Premium Income
Unum US	$	1,211.4	$	1,207.9		0.3	%	$	4,854.6	$	4,873.1		(0.4	)%
Unum UK		170.5		180.0		(5.3	)		650.6		686.1		(5.2	)
Colonial Life		273.6		257.4		6.3			1,075.7		1,015.1		6.0
Individual Disability - Closed Block		212.0		219.4		(3.4	)		847.0		898.5		(5.7	)
Corporate and Other		0.7		1.0		(30.0	)		3.5		2.7		29.6
		1,868.2		1,865.7		0.1			7,431.4		7,475.5		(0.6	)
Net Investment Income
Unum US		327.6		302.3		8.4			1,263.8		1,200.5		5.3
Unum UK		48.6		40.8		19.1			170.5		124.5		36.9
Colonial Life		31.4		28.9		8.7			122.5		114.3		7.2
Individual Disability - Closed Block		182.9		182.4		0.3			746.4		740.6		0.8
Corporate and Other		43.8		41.3		6.1			192.3		166.7		15.4
		634.3		595.7		6.5			2,495.5		2,346.6		6.3
Other Income
Unum US		32.7		28.3		15.5			123.3		118.7		3.9
Unum UK		0.1		0.6		(83.3	)		1.2		2.4		(50.0	)
Colonial Life		0.2		0.1		100.0			0.7		0.5		40.0
Individual Disability - Closed Block		23.4		23.8		(1.7	)		90.7		100.8		(10.0	)
Corporate and Other		6.7		8.3		(19.3	)		25.7		34.8		(26.1	)
		63.1		61.1		3.3			241.6		257.2		(6.1	)
Total Operating Revenue
Unum US		1,571.7		1,538.5		2.2			6,241.7		6,192.3		0.8
Unum UK		219.2		221.4		(1.0	)		822.3		813.0		1.1
Colonial Life		305.2		286.4		6.6			1,198.9		1,129.9		6.1
Individual Disability - Closed Block		418.3		425.6		(1.7	)		1,684.1		1,739.9		(3.2	)
Corporate and Other		51.2		50.6		1.2			221.5		204.2		8.5
		2,565.6		2,522.5		1.7			10,168.5		10,079.3		0.9

Unum Group Financial Results by Segment

	Three Months Ended									Year Ended
	12/31/2010			12/31/2009			% Change			12/31/2010			12/31/2009			% Change
Benefits and Expenses
Unum US	$	1,365.6		$	1,335.5			2.3	%	$	5,415.7		$	5,417.3			-	%
Unum UK		171.1			160.1			6.9			613.5			563.4			8.9
Colonial Life		244.4			218.1			12.1			916.7			849.0			8.0
Individual Disability - Closed Block		408.0			419.8			(2.8	)		1,639.9			1,705.6			(3.9	)
Corporate and Other		68.5			67.2			1.9			276.1			263.4			4.8
		2,257.6			2,200.7			2.6			8,861.9			8,798.7			0.7
Income (Loss) Before Income Taxes and
Net Realized Investment Gain (Loss)
Unum US		206.1			203.0			1.5			826.0			775.0			6.6
Unum UK		48.1			61.3			(21.5	)		208.8			249.6			(16.3	)
Colonial Life		60.8			68.3			(11.0	)		282.2			280.9			0.5
Individual Disability - Closed Block		10.3			5.8			77.6			44.2			34.3			28.9
Corporate and Other		(17.3	)		(16.6	)		(4.2	)		(54.6	)		(59.2	)		7.8
		308.0			321.8			(4.3	)		1,306.6			1,280.6			2.0
Income Taxes		99.4			103.5			(4.0	)		436.2			428.2			1.9

Income Before Net Realized Investment Gain (Loss)		208.6			218.3			(4.4	)		870.4			852.4			2.1

Net Realized Investment Gain (Loss)		27.5			(25.9	)		206.2			24.7			11.7			111.1

Tax Expense (Benefit) on Net Realized Investment
Gain (Loss)		10.3			(7.0	)		(247.1	)		9.0			11.5			(21.7	)

Net Income	$	225.8		$	199.4			13.2		$	886.1		$	852.6			3.9

5.1

Unum Group Quarterly Historical Financial Results by Segment

	12/31/10		9/30/10		6/30/10		3/31/10		12/31/09		9/30/09		6/30/09		3/31/09		12/31/08
Premium Income
Unum US	$	1,211.4	$	1,210.6	$	1,216.5	$	1,216.1	$	1,207.9	$	1,215.2	$	1,223.7	$	1,226.3	$	1,246.6
Unum UK		170.5		161.4		152.9		165.8		180.0		169.7		173.4		163.0		182.3
Colonial Life		273.6		269.3		267.7		265.1		257.4		253.5		250.8		253.4		249.1
Individual Disability - Closed Block		212.0		208.5		212.5		214.0		219.4		221.5		228.0		229.6		239.2
Corporate and Other		0.7		0.4		0.2		2.2		1.0		1.2		-		0.5		0.5
		1,868.2		1,850.2		1,849.8		1,863.2		1,865.7		1,861.1		1,875.9		1,872.8		1,917.7
Net Investment Income
Unum US		327.6		312.9		318.7		304.6		302.3		302.8		304.1		291.3		289.6
Unum UK		48.6		39.0		43.1		39.8		40.8		22.5		34.3		26.9		42.1
Colonial Life		31.4		31.9		29.3		29.9		28.9		29.4		28.4		27.6		26.9
Individual Disability - Closed Block		182.9		185.5		187.3		190.7		182.4		184.4		187.4		186.4		188.9
Corporate and Other		43.8		49.1		51.4		48.0		41.3		40.5		43.4		41.5		42.3
		634.3		618.4		629.8		613.0		595.7		579.6		597.6		573.7		589.8
Other Income
Unum US		32.7		29.7		30.4		30.5		28.3		28.8		30.0		31.6		33.2
Unum UK		0.1		0.2		0.4		0.5		0.6		0.6		0.6		0.6		0.7
Colonial Life		0.2		0.2		0.1		0.2		0.1		0.1		0.2		0.1		0.1
Individual Disability - Closed Block		23.4		22.7		23.1		21.5		23.8		24.3		25.8		26.9		25.3
Corporate and Other		6.7		5.4		6.5		7.1		8.3		8.1		10.6		7.8		14.6
		63.1		58.2		60.5		59.8		61.1		61.9		67.2		67.0		73.9
Total Operating Revenue
Unum US		1,571.7		1,553.2		1,565.6		1,551.2		1,538.5		1,546.8		1,557.8		1,549.2		1,569.4
Unum UK		219.2		200.6		196.4		206.1		221.4		192.8		208.3		190.5		225.1
Colonial Life		305.2		301.4		297.1		295.2		286.4		283.0		279.4		281.1		276.1
Individual Disability - Closed Block		418.3		416.7		422.9		426.2		425.6		430.2		441.2		442.9		453.4
Corporate and Other		51.2		54.9		58.1		57.3		50.6		49.8		54.0		49.8		57.4
		2,565.6		2,526.8		2,540.1		2,536.0		2,522.5		2,502.6		2,540.7		2,513.5		2,581.4

Unum Group Quarterly Historical Financial Results by Segment

	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Benefits and Expenses
Unum US	$	1,365.6		$	1,348.5		$	1,349.6		$	1,352.0		$	1,335.5		$	1,349.7		$	1,366.5		$	1,365.6		$	1,386.8
Unum UK		171.1			153.4			143.5			145.5			160.1			134.1			141.0			128.2			170.5
Colonial Life		244.4			226.9			223.2			222.2			218.1			212.6			208.1			210.2			209.8
Individual Disability - Closed Block		408.0			406.9			410.5			414.5			419.8			423.0			431.2			431.6			446.3
Corporate and Other		68.5			65.7			75.7			66.2			67.2			63.5			70.0			62.7			57.8
		2,257.6			2,201.4			2,202.5			2,200.4			2,200.7			2,182.9			2,216.8			2,198.3			2,271.2
Income (Loss) Before Income Taxes and
Net Realized Investment Gain (Loss)
Unum US		206.1			204.7			216.0			199.2			203.0			197.1			191.3			183.6			182.6
Unum UK		48.1			47.2			52.9			60.6			61.3			58.7			67.3			62.3			54.6
Colonial Life		60.8			74.5			73.9			73.0			68.3			70.4			71.3			70.9			66.3
Individual Disability - Closed Block		10.3			9.8			12.4			11.7			5.8			7.2			10.0			11.3			7.1
Corporate and Other		(17.3	)		(10.8	)		(17.6	)		(8.9	)		(16.6	)		(13.7	)		(16.0	)		(12.9	)		(0.4	)
		308.0			325.4			337.6			335.6			321.8			319.7			323.9			315.2			310.2
Income Taxes		99.4			105.5			109.0			122.3			103.5			108.1			108.1			108.5			100.8

Income Before Net Realized
Investment Gain (Loss)		208.6			219.9			228.6			213.3			218.3			211.6			215.8			206.7			209.4

Net Realized Investment Gain (Loss)		27.5			1.1			(29.5	)		25.6			(25.9	)		14.9			87.3			(64.6	)		(257.7	)

Tax Expense (Benefit) on Net Realized
Investment Gain (Loss)		10.3			0.2			(10.6	)		9.1			(7.0	)		5.4			35.9			(22.8	)		(90.1	)

Net Income	$	225.8		$	220.8		$	209.7		$	229.8		$	199.4		$	221.1		$	267.2		$	164.9		$	41.8

Net Income Per Common Share -
Assuming Dilution	$	0.71		$	0.68		$	0.63		$	0.69		$	0.60		$	0.66		$	0.80		$	0.50		$	0.13

6.1

Unum Group Financial Results for Unum US Segment

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	1,211.4		$	1,207.9		$	4,854.6		$	4,873.1		$	4,963.0
Net Investment Income		327.6			302.3			1,263.8			1,200.5			1,136.4
Other Income		32.7			28.3			123.3			118.7			132.7
Total Operating Revenue		1,571.7			1,538.5			6,241.7			6,192.3			6,232.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		967.2			945.1			3,849.4			3,855.9			3,998.4
Commissions		129.2			123.3			525.6			516.6			518.6
Interest and Debt Expense		0.3			0.3			1.2			2.0			4.2
Deferral of Acquisition Costs		(80.1	)		(81.7	)		(333.0	)		(335.5	)		(329.7	)
Amortization of Deferred Acquisition Costs		83.4			78.7			332.9			317.2			320.3
Other Expenses		265.6			269.8			1,039.6			1,061.1			1,036.2
Total Benefits and Expenses		1,365.6			1,335.5			5,415.7			5,417.3			5,548.0

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	206.1		$	203.0		$	826.0		$	775.0		$	684.1

Operating Ratios
Benefit Ratio		79.8	%		78.2	%		79.3	%		79.1	%		80.6	%
Other Expense Ratio		21.9	%		22.3	%		21.4	%		21.8	%		20.9	%
Before-tax Profit Margin		17.0	%		16.8	%		17.0	%		15.9	%		13.8	%

Unum Group Financial Results for Unum US Group Disability

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	$	405.8		$	428.0		$	1,639.4		$	1,726.9		$	1,838.5
Group Short-term Disability		108.4			107.6			430.9			432.8			435.1
Total Premium Income		514.2			535.6			2,070.3			2,159.7			2,273.6
Net Investment Income		157.2			154.0			614.6			629.4			631.3
Other Income		21.9			21.8			86.7			88.9			100.2
Total Operating Revenue		693.3			711.4			2,771.6			2,878.0			3,005.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		433.2			453.1			1,747.8			1,862.8			2,043.9
Commissions		40.5			38.7			159.7			162.2			165.9
Interest and Debt Expense		0.3			0.3			1.2			2.0			4.2
Deferral of Acquisition Costs		(13.8	)		(15.2	)		(59.0	)		(62.5	)		(59.4	)
Amortization of Deferred Acquisition Costs		15.3			16.3			63.5			67.3			76.7
Other Expenses		140.8			145.6			543.7			572.6			572.4
Total Benefits and Expenses		616.3			638.8			2,456.9			2,604.4			2,803.7

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	77.0		$	72.6		$	314.7		$	273.6		$	201.4

Operating Ratios
Benefit Ratio		84.2	%		84.6	%		84.4	%		86.3	%		89.9	%
Other Expense Ratio		27.4	%		27.2	%		26.3	%		26.5	%		25.2	%
Before-tax Profit Margin		15.0	%		13.6	%		15.2	%		12.7	%		8.9	%

Premium Persistency:
Group Long-term Disability								89.4	%		86.9	%		87.8	%
Group Short-term Disability								88.6	%		86.8	%		82.1	%

Case Persistency:
Group Long-term Disability								88.4	%		87.4	%		89.2	%
Group Short-term Disability								87.3	%		86.5	%		88.2	%

7.1

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

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Life	$	275.8		$	264.1		$	1,090.3		$	1,057.7		$	1,062.8
Accidental Death & Dismemberment		26.8			25.3			106.1			104.9			127.6
Total Premium Income		302.6			289.4			1,196.4			1,162.6			1,190.4
Net Investment Income		33.8			31.4			129.6			126.5			126.0
Other Income		0.6			0.3			2.4			1.9			2.3
Total Operating Revenue		337.0			321.1			1,328.4			1,291.0			1,318.7

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		212.7			202.3			839.9			815.5			827.6
Commissions		23.4			21.0			89.3			85.4			85.4
Deferral of Acquisition Costs		(11.7	)		(12.1	)		(49.3	)		(48.1	)		(40.3	)
Amortization of Deferred Acquisition Costs		10.2			11.2			43.3			45.9			55.0
Other Expenses		49.2			51.0			196.5			197.6			180.1
Total Benefits and Expenses		283.8			273.4			1,119.7			1,096.3			1,107.8

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	53.2		$	47.7		$	208.7		$	194.7		$	210.9

Operating Ratios
Benefit Ratio		70.3	%		69.9	%		70.2	%		70.1	%		69.5	%
Other Expense Ratio		16.3	%		17.6	%		16.4	%		17.0	%		15.1	%
Before-tax Profit Margin		17.6	%		16.5	%		17.4	%		16.7	%		17.7	%

Premium Persistency:
Group Life								91.5	%		86.9	%		83.8	%
Accidental Death & Dismemberment								90.7	%		88.1	%		86.4	%

Case Persistency:
Group Life								88.3	%		87.2	%		89.1	%
Accidental Death & Dismemberment								88.4	%		87.2	%		89.2	%

7.2

Unum Group Financial Results for Unum US Supplemental and Voluntary

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Individual Disability - Recently Issued	$	108.4		$	107.1		$	457.9		$	463.7		$	471.5
Long-term Care		151.1			149.9			599.2			594.7			580.7
Voluntary Benefits		135.1			125.9			530.8			492.4			446.8
Total Premium Income		394.6			382.9			1,587.9			1,550.8			1,499.0
Net Investment Income		136.6			116.9			519.6			444.6			379.1
Other Income		10.2			6.2			34.2			27.9			30.2
Total Operating Revenue		541.4			506.0			2,141.7			2,023.3			1,908.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		321.3			289.7			1,261.7			1,177.6			1,126.9
Commissions		65.3			63.6			276.6			269.0			267.3
Deferral of Acquisition Costs		(54.6	)		(54.4	)		(224.7	)		(224.9	)		(230.0	)
Amortization of Deferred Acquisition Costs		57.9			51.2			226.1			204.0			188.6
Other Expenses		75.6			73.2			299.4			290.9			283.7
Total Benefits and Expenses		465.5			423.3			1,839.1			1,716.6			1,636.5

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	75.9		$	82.7		$	302.6		$	306.7		$	271.8

Operating Ratios
Benefit Ratios
Individual Disability - Recently Issued		55.1	%		48.9	%		53.3	%		51.4	%		53.3	%
Long-term Care		125.0	%		113.8	%		121.0	%		111.6	%		106.1	%
Voluntary Benefits		53.8	%		53.0	%		55.1	%		56.0	%		58.0	%
Other Expense Ratio		19.2	%		19.1	%		18.9	%		18.8	%		18.9	%
Before-tax Profit Margin		19.2	%		21.6	%		19.1	%		19.8	%		18.1	%

Interest Adjusted Loss Ratios
Individual Disability - Recently Issued		32.8	%		28.2	%		32.5	%		32.5	%		35.9	%
Long-term Care		83.1	%		77.0	%		80.8	%		76.5	%		75.5	%

Premium Persistency:
Individual Disability - Recently Issued								90.7	%		89.6	%		90.7	%
Long-term Care								95.8	%		95.1	%		95.5	%
Voluntary Benefits								80.1	%		79.9	%		80.4	%

7.3

Unum Group Financial Results for Unum UK Segment

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	$	110.5		$	121.0		$	421.2		$	482.4		$	656.3
Group Life		44.8			43.6			171.6			147.8			174.6
Supplemental and Voluntary		15.2			15.4			57.8			55.9			58.4
Total Premium Income		170.5			180.0			650.6			686.1			889.3
Net Investment Income		48.6			40.8			170.5			124.5			181.9
Other Income		0.1			0.6			1.2			2.4			2.0
Total Operating Revenue		219.2			221.4			822.3			813.0			1,073.2

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		122.3			107.3			435.8			373.6			511.4
Commissions		12.2			13.4			44.1			46.7			59.0
Deferral of Acquisition Costs		(7.8	)		(8.1	)		(28.3	)		(29.1	)		(37.4	)
Amortization of Deferred Acquisition Costs		6.7			8.0			27.0			30.5			32.4
Other Expenses		37.7			39.5			134.9			141.7			183.8
Total Benefits and Expenses		171.1			160.1			613.5			563.4			749.2

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	48.1		$	61.3		$	208.8		$	249.6		$	324.0

Operating Ratios
Benefit Ratio		71.7	%		59.6	%		67.0	%		54.5	%		57.5	%
Other Expense Ratio		22.1	%		21.9	%		20.7	%		20.7	%		20.7	%
Before-tax Profit Margin		28.2	%		34.1	%		32.1	%		36.4	%		36.4	%

Persistency:
Group Long-term Disability								91.3	%		88.5	%		87.4	%
Group Life								92.7	%		80.1	%		74.9	%
Supplemental and Voluntary								88.9	%		88.2	%		87.7	%

Unum Group Financial Results for Unum UK Segment - Continued

(in millions of pounds)	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	£	69.9		£	74.1		£	272.3		£	309.0		£	353.7
Group Life		28.3			26.7			110.9			94.1			93.3
Supplemental and Voluntary		9.7			9.4			37.4			35.6			31.6
Total Premium Income		107.9			110.2			420.6			438.7			478.6
Net Investment Income		30.7			25.0			110.2			79.6			98.5
Other Income		0.2			0.4			0.9			1.6			1.2
Total Operating Revenue		138.8			135.6			531.7			519.9			578.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		77.3			65.7			281.4			238.3			275.8
Commissions		7.7			8.2			28.5			29.8			31.9
Deferral of Acquisition Costs		(4.9	)		(4.9	)		(18.3	)		(18.5	)		(20.1	)
Amortization of Deferred Acquisition Costs		4.2			4.9			17.4			19.5			17.9
Other Expenses		24.0			24.1			87.4			90.2			99.6
Total Benefits and Expenses		108.3			98.0			396.4			359.3			405.1

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	£	30.5		£	37.6		£	135.3		£	160.6		£	173.2

Weighted Average Pound/Dollar Exchange Rate		1.577			1.630			1.543			1.554			1.871

8.1

Unum Group Financial Results for Colonial Life Segment

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	167.9		$	158.0		$	661.0		$	625.8		$	606.9
Life		45.5			42.5			176.5			165.6			157.4
Cancer and Critical Illness		60.2			56.9			238.2			223.7			213.0
Total Premium Income		273.6			257.4			1,075.7			1,015.1			977.3
Net Investment Income		31.4			28.9			122.5			114.3			105.7
Other Income		0.2			0.1			0.7			0.5			0.4
Total Operating Revenue		305.2			286.4			1,198.9			1,129.9			1,083.4

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		146.2			124.8			534.7			480.6			464.0
Commissions		60.9			54.5			232.6			215.3			211.8
Deferral of Acquisition Costs		(64.3	)		(58.0	)		(246.4	)		(229.0	)		(223.8	)
Amortization of Deferred Acquisition Costs		49.3			44.5			187.2			178.5			166.4
Other Expenses		52.3			52.3			208.6			203.6			196.9
Total Benefits and Expenses		244.4			218.1			916.7			849.0			815.3

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	60.8		$	68.3		$	282.2		$	280.9		$	268.1

Operating Ratios
Benefit Ratio		53.4	%		48.5	%		49.7	%		47.3	%		47.5	%
Other Expense Ratio		19.1	%		20.3	%		19.4	%		20.1	%		20.1	%
Before-tax Profit Margin		22.2	%		26.5	%		26.2	%		27.7	%		27.4	%

Persistency:
Accident, Sickness, and Disability								75.9	%		74.4	%		75.8	%
Life								86.0	%		84.7	%		84.7	%
Cancer and Critical Illness								84.9	%		83.8	%		84.0	%

Unum Group Financial Results for Individual Disability - Closed Block Segment

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	212.0		$	219.4		$	847.0		$	898.5		$	952.3
Net Investment Income		182.9			182.4			746.4			740.6			767.5
Other Income		23.4			23.8			90.7			100.8			98.6
Total Operating Revenue		418.3			425.6			1,684.1			1,739.9			1,818.4

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		361.3			367.4			1,451.3			1,489.6			1,544.8
Commissions		12.7			13.8			52.0			58.1			62.7
Interest and Debt Expense		2.8			3.1			11.7			16.6			35.1
Other Expenses		31.2			35.5			124.9			141.3			148.1
Total Benefits and Expenses		408.0			419.8			1,639.9			1,705.6			1,790.7

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	10.3		$	5.8		$	44.2		$	34.3		$	27.7

Operating Ratios
Interest Adjusted Loss Ratio		84.7	%		81.6	%		85.0	%		81.6	%		82.2	%
Premium Persistency								93.0	%		93.2	%		93.8	%

Unum Group Financial Results for Corporate and Other Segment

	Three Months Ended						Year Ended
	12/31/2010			12/31/2009			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	0.7		$	1.0		$	3.5		$	2.7		$	1.4
Net Investment Income		43.8			41.3			192.3			166.7			197.5
Other Income		6.7			8.3			25.7			34.8			42.2
Total Operating Revenue		51.2			50.6			221.5			204.2			241.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		21.1			22.0			82.9			91.9			107.8
Commissions		0.3			(0.1	)		1.1			0.4			1.2
Interest and Debt Expense		36.0			31.1			128.9			106.8			117.4
Other Expenses		11.1			14.2			63.2			64.3			28.7
Total Benefits and Expenses		68.5			67.2			276.1			263.4			255.1

Operating Loss Before Income Taxes and
Net Realized Investment Gains and Losses	$	(17.3	)	$	(16.6	)	$	(54.6	)	$	(59.2	)	$	(14.0	)

Unum Group Reserves

	December 31, 2010
	Gross														Total
	Policy					Claim Reserves									Reinsurance		Total
	Reserves		%			Incurred		IBNR		%			Total		Ceded		Net

Group Disability	$	-		-	%	$	7,480.2	$	590.2		33.2	%	$	8,070.4	$	69.4	$	8,001.0
Group Life and Accidental Death & Dismemberment		72.9		0.5			783.7		152.8		3.8			1,009.4		1.5		1,007.9
Individual Disability - Recently Issued		534.5		3.9			1,005.1		99.9		4.5			1,639.5		88.3		1,551.2
Long-term Care		3,867.1		27.9			391.6		38.5		1.8			4,297.2		47.8		4,249.4
Voluntary Benefits		1,060.3		7.7			24.1		59.0		0.4			1,143.4		24.8		1,118.6
Unum US Segment		5,534.8		40.0			9,684.7		940.4		43.7			16,159.9		231.8		15,928.1

Unum UK Segment		26.6		0.2			2,057.6		142.7		9.0			2,226.9		105.6		2,121.3

Colonial Life Segment		1,318.0		9.5			228.9		78.6		1.3			1,625.5		17.8		1,607.7

Individual Disability - Closed Block Segment		1,249.1		9.0			10,335.3		309.6		43.7			11,894.0		1,457.4		10,436.6

Corporate and Other Segment		5,703.8		41.3			364.7		196.9		2.3			6,265.4		4,860.1		1,405.3

Subtotal, Excluding Unrealized Adjustment	$	13,832.3		100.0	%	$	22,671.2	$	1,668.2		100.0	%		38,171.7		6,672.7		31,499.0

Unrealized Adjustment to Reserves for
Unrealized Gain on Securities														3,108.3		159.0		2,949.3

Consolidated													$	41,280.0	$	6,831.7	$	34,448.3

The increase in Unum US Segment Policy Reserves Incurred from December 31, 2009 is due primarily to normal growth in the active life reserves for the Unum US long-term care line of business.

Unum Group Reserves

	December 31, 2009
	Gross														Total
	Policy					Claim Reserves									Reinsurance		Total
	Reserves		%			Incurred		IBNR		%			Total		Ceded		Net

Group Disability	$	-		-	%	$	7,685.3	$	586.1		33.6	%	$	8,271.4	$	73.7	$	8,197.7
Group Life and Accidental Death & Dismemberment		70.2		0.5			748.4		163.3		3.7			981.9		1.8		980.1
Individual Disability - Recently Issued		516.5		3.9			949.5		91.2		4.2			1,557.2		87.5		1,469.7
Long-term Care		3,376.8		25.5			350.1		36.7		1.6			3,763.6		50.2		3,713.4
Voluntary Benefits		996.5		7.5			21.6		44.2		0.3			1,062.3		21.2		1,041.1
Unum US Segment		4,960.0		37.4			9,754.9		921.5		43.4			15,636.4		234.4		15,402.0

Unum UK Segment		26.8		0.2			2,096.8		161.5		9.2			2,285.1		113.1		2,172.0

Colonial Life Segment		1,234.2		9.3			232.9		87.7		1.3			1,554.8		24.7		1,530.1

Individual Disability - Closed Block Segment		1,376.8		10.4			10,290.9		330.5		43.2			11,998.2		1,438.2		10,560.0

Corporate and Other Segment		5,649.5		42.7			455.7		253.3		2.9			6,358.5		4,902.0		1,456.5

Subtotal, Excluding Unrealized Adjustment	$	13,247.3		100.0	%	$	22,831.2	$	1,754.5		100.0	%		37,833.0		6,712.4		31,120.6

Unrealized Adjustment to Reserves for
Unrealized Gain on Securities														1,644.7		127.2		1,517.5

Consolidated													$	39,477.7	$	6,839.6	$	32,638.1

12.1

Unum Group Investment Fact Sheet at December 31, 2010


Fixed Maturity Securities (Fair Value)	12/31/2010						Selected Statistics	12/31/10			9/30/10

Public	$	25,785.5			64.4	%	Duration Weighted Book Yield		6.72	%		6.73	%
Asset-Backed Securities (1)		323.2			0.8		Average Duration (in years)		7.55			7.75
Residential Mortgage-Backed Securities		3,062.3			7.6		Average Credit Quality			A			A
Private Placements		4,305.3			10.8
High Yield		2,748.1			6.9
Government Securities		2,511.0			6.3
Municipal Securities		1,245.2			3.1
Redeemable Preferred Stocks (2)		55.0			0.1
Total	$	40,035.6			100.0	%


Quality Ratings of Fixed Maturity Securities	Amortized Cost			Fair Value			Schedule BA and Non-Current

Aaa		14.3	%		14.4	%	Total Non-Current Investments	$	56.2		$	47.1
Aa		9.7			9.6		Total Schedule BA Assets	$	379.3		$	326.8
A		29.1			29.5
Baa		39.6			39.6
Below Baa		7.3			6.9
Total		100.0	%		100.0	%

(1) Includes $0.6 million of high yield asset-backed securities.

(2) Includes $6.3 million of high yield preferred stock.

Unum Group Investment Fact Sheet at December 31, 2010

Fixed Maturity Securities - By Industry Classification - Unrealized Gain (Loss)

Classification	Fair Value		Net Unrealized Gain			Fair Value of Fixed Maturity Securities with Gross Unrealized Loss		Gross Unrealized Loss		Fair Value of Fixed Maturity Securities with Gross Unrealized Gain		Gross Unrealized Gain
Basic Industry	$	2,154.0	$	140.4		$	325.4	$	16.8	$	1,828.6	$	157.2
Capital Goods		3,511.3		323.9			389.3		14.6		3,122.0		338.5
Communications		2,678.0		303.0			245.3		14.5		2,432.7		317.5
Consumer Cyclical		1,305.4		72.2			275.5		22.4		1,029.9		94.6
Consumer Non-Cyclical		5,067.8		507.2			341.7		17.6		4,726.1		524.8
Energy (Oil & Gas)		3,212.3		407.9			47.7		3.7		3,164.6		411.6
Financial Institutions		3,330.1		113.7			960.5		39.1		2,369.6		152.8
Mortgage/Asset-Backed		3,385.5		337.7			80.0		0.6		3,305.5		338.3
Sovereigns		1,409.3		160.7			-		-		1,409.3		160.7
Technology		857.7		92.3			90.8		3.0		766.9		95.3
Transportation		1,038.1		126.6			62.7		2.4		975.4		129.0
U.S. Government Agencies
and Municipalities		2,346.9		94.2			795.7		55.9		1,551.2		150.1
Utilities		9,684.2		810.0			1,114.8		44.3		8,569.4		854.3
Redeemable Preferred Stocks		55.0		(0.8	)		28.3		2.5		26.7		1.7
Total	$	40,035.6	$	3,489.0		$	4,757.7	$	237.4	$	35,277.9	$	3,726.4

Fixed Maturity Securities - Financial Institutions Classification - Unrealized Gain (Loss)

Associations	$	13.3	$	1.2		$	-	$	-	$	13.3	$	1.2
Banking		1,926.7		35.0			714.9		33.0		1,211.8		68.0
Brokerage		170.9		8.7			25.8		1.2		145.1		9.9
Finance Non-Captive		37.7		0.8			3.0		-		34.7		0.8
Finance Captive		200.4		9.6			11.7		0.9		188.7		10.5
Insurance		745.1		54.3			131.3		1.8		613.8		56.1
Other Financial Institutions		54.1		0.9			24.2		0.8		29.9		1.7
Real Estate Management Services		181.9		3.2			49.6		1.4		132.3		4.6
Total	$	3,330.1	$	113.7		$	960.5	$	39.1	$	2,369.6	$	152.8

Gross Unrealized Loss on Fixed Maturity Securities By Length of Time in Unrealized Loss Position

	Investment-Grade							Below-Investment-Grade
Category	Fair Value		Gross Unrealized Loss					Fair Value		Gross Unrealized Loss
Less than 91 days	$	2,931.9	$	93.2				$	234.1	$	5.1
91 through 180 days		187.7		16.9					7.7		0.1
181 through 270 days		41.6		1.9					41.4		4.1
271 days to 1 year		23.2		-					-		-
Greater than 1 year		859.7		72.9					430.4		43.2
Total	$	4,044.1	$	184.9				$	713.6	$	52.5

13.1

Unum Group Investment Fact Sheet at December 31, 2010

Asset and Mortgage-Backed Securities Portfolio

	Amortized Cost		Fair Value				% of Total Fixed Maturity Securities			Average Rating

Asset-Backed Securities
Credit Cards	$	299.4	$	301.0	8.9	%		0.7	%	AAA
Rate Reduction Bonds		21.0		21.5	0.6			0.1		AAA
Home Equity		1.1		0.7	-			-		B
Collateralized Debt Obligations		-		-	-			-		-
Total		321.5		323.2	9.5			0.8		AAA

Residential Mortgage-Backed Securities
Agency CMOs		2,609.1		2,938.2	86.8			7.3		AAA
Agency Pass-throughs		56.7		61.0	1.8			0.1		AAA
Non-agency CMOs - Prime		60.5		63.1	1.9			0.2		Aa2
Alt-A		-		-	-			-		-
Subprime		-		-	-			-		-
Collateralized Debt Obligations		-		-	-			-		-
Total		2,726.3		3,062.3	90.5			7.6		AAA

Commercial Mortgage-Backed Securities		-		-	-			-		-

Total	$	3,047.8	$	3,385.5	100.0	%		8.4	%	AAA

13.2

Unum Group Statutory Capital and Surplus

							As of
	As of December 31, 2010						December 31, 2009
	Capital and				Capital and		Capital and
	Surplus		AVR		Surplus + AVR		Surplus + AVR
Traditional U.S. Life Insurance Companies

Provident Life and Accident	$	654.6	$	77.4	$	732.0	$	633.2

Unum Life of America		1,539.6		201.5		1,741.1		1,696.9

Paul Revere Life (1)		419.5		32.1		451.6		474.8

Colonial Life & Accident		491.7		22.5		514.2		474.2

Provident Life and Casualty		142.6		6.9		149.5		135.6

First Unum Life		239.4		8.8		248.2		224.2

Paul Revere Variable (1)		35.1		0.5		35.6		32.2

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

Special Purpose Reinsurance Vehicles

Tailwind Reinsurance Company	$	81.4	$	0.1	$	81.5	$	93.9

Northwind Reinsurance Company		1,195.5		3.1		1,198.6		1,208.7

UnumProvident International Ltd.		530.4		-		530.4		524.8

Unum Group Statutory Operating Results

	Twelve Months Ended December 31
	Net Gain (Loss) from						Net Realized Investment Gains (Losses)
	Operations After Tax						After Tax and Transfers to IMR						Net Income (Loss)
	2010			2009			2010			2009			2010			2009
Traditional U.S. Life Insurance Companies
Provident Life and Accident	$	141.5		$	127.1		$	(11.2	)	$	(13.8	)	$	130.3		$	113.3
Unum Life of America		256.8			302.5			(10.5	)		(53.1	)		246.3			249.4
Paul Revere Life		67.7			141.2			(2.8	)		(9.8	)		64.9			131.4
Colonial Life & Accident		138.1			132.0			4.2			(7.6	)		142.3			124.4
Provident Life and Casualty		13.3			6.5			-			(0.4	)		13.3			6.1
First Unum Life		25.6			26.0			1.6			(18.5	)		27.2			7.5
Paul Revere Variable		2.7			5.9			1.8			1.2			4.5			7.1
Total, as reported		645.7			741.2			(16.9	)		(102.0	)		628.8			639.2
Intercompany Dividends		(4.2	)		(70.0	)		-			-			(4.2	)		(70.0	)
Total, as adjusted	$	641.5		$	671.2		$	(16.9	)	$	(102.0	)	$	624.6		$	569.2

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	6.7		$	(2.6	)	$	-		$	-		$	6.7		$	(2.6	)
Northwind Reinsurance Company		72.5			89.8			(0.1	)		-			72.4			89.8
UnumProvident International Ltd.		(4.7	)		16.2			11.9			(11.1	)		7.2			5.1
Total	$	74.5		$	103.4		$	11.8		$	(11.1	)	$	86.3		$	92.3

	Three Months Ended December 31
	Net Gain (Loss) from						Net Realized Investment Gains (Losses)
	Operations After Tax						After Tax and Transfers to IMR						Net Income (Loss)
	2010			2009			2010			2009			2010			2009
Traditional U.S. Life Insurance Companies
Provident Life and Accident	$	40.2		$	36.2		$	(2.4	)	$	(2.3	)	$	37.8		$	33.9
Unum Life of America		58.6			82.3			3.1			(5.9	)		61.7			76.4
Paul Revere Life		16.5			83.9			0.2			(0.2	)		16.7			83.7
Colonial Life & Accident		31.0			36.9			0.1			(0.7	)		31.1			36.2
Provident Life and Casualty		1.6			1.6			-			-			1.6			1.6
First Unum Life		9.6			4.4			(0.8	)		(3.8	)		8.8			0.6
Paul Revere Variable		0.7			1.3			0.1			1.3			0.8			2.6
Total, as reported		158.2			246.6			0.3			(11.6	)		158.5			235.0
Intercompany Dividends		(4.2	)		(70.0	)		-			-			(4.2	)		(70.0	)
Total, as adjusted	$	154.0		$	176.6		$	0.3		$	(11.6	)	$	154.3		$	165.0

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	3.2		$	2.4		$	-		$	-		$	3.2		$	2.4
Northwind Reinsurance Company		25.3			23.7			-			-			25.3			23.7
UnumProvident International Ltd.		4.7			5.6			3.5			2.7			8.2			8.3
Total	$	33.2		$	31.7		$	3.5		$	2.7		$	36.7		$	34.4

Note: Statutory results for our domestic insurers are reported in conformity with statutory accounting principles as prescribed by the National Association of Insurance Commissioners and adopted by the applicable state laws. For UnumProvident International Ltd., results are reported in conformity with accounting principles as prescribed by applicable Bermuda laws.

14.1

Unum Life Insurance Company of America - Statutory Basis
Group Accident and Health Statutory Claim Reserves and Liabilities, Net of Ceded
On Claims Incurred Prior to January 1

	2010			2009			2008

Reserve Balance from Prior Year End	$	6,880.9		$	6,982.6		$	6,904.6
Other Adjustments to Beginning Balance (see Schedule H)		-			(5.2	)		-
Reserve Balance January 1 (a)		6,880.9			6,977.4			6,904.6
Paid on Prior Year Claims		(374.3	)		(386.4	)		(397.2	)
Interest Earned on Reserves		113.0			113.0			111.0
Incurred on Prior Year Claims		(113.1	)		(103.0	)		(33.7	)
Reserve Balance March 31	$	6,506.5		$	6,601.0		$	6,584.7

Reserve Balance March 31	$	6,506.5		$	6,601.0		$	6,584.7
Paid on Prior Year Claims		(324.2	)		(335.6	)		(347.2	)
Interest Earned on Reserves		108.2			108.3			105.8
Incurred on Prior Year Claims		(117.5	)		(104.3	)		(74.6	)
Reserve Charges Incurred for Settlement Agreements		-			-			-
Reserve Balance June 30	$	6,173.0		$	6,269.4		$	6,268.7

Reserve Balance June 30	$	6,173.0		$	6,269.4		$	6,268.7
Reserves Ceded September 1 for Prior Year Incurrals		(4.5	)		-			-
Paid on Prior Year Claims		(304.0	)		(307.6	)		(315.3	)
Interest Earned on Reserves		103.1			103.9			102.6
Incurred on Prior Year Claims		(75.1	)		(69.2	)		(51.5	)
Reserve Balance September 30	$	5,892.5		$	5,996.5		$	6,004.5

Reserve Balance September 30	$	5,892.5		$	5,996.5		$	6,004.5
Paid on Prior Year Claims		(282.9	)		(271.6	)		(287.4	)
Interest Earned on Reserves		99.0			101.9			99.1
Incurred on Prior Year Claims		(76.9	)		(83.7	)		(71.0	)
Reserve Balance December 31 on Prior Year Claims		5,631.7			5,743.1			5,745.2
Reserve Balance December 31 on Current Year Claims		1,197.7			1,137.8			1,237.4
Reserve Balance December 31 on Total Claims Incurred (b)	$	6,829.4		$	6,880.9		$	6,982.6

(a) balances to Schedule H Part 3 Line 3.2 Column 2
(b) balances to Schedule H Part 2 Line C.1 Column 2

14.2

Reconciliation to Unum Life Insurance Company of America - Statutory Basis
Schedule H Part 3 for Group Accident and Health

	2010			2009			2008

Paid on Prior Year Existing Claims - Full Year	$	1,285.4		$	1,301.2		$	1,347.1
(balances to Schedule H Part 3 Line 1.1 Column 2)

Incurred on Prior Year Claims - Full Year	$	(382.6	)	$	(360.2	)	$	(230.8	)
Interest Earned on Reserves - Full Year		423.3			427.1			418.5
Incurred on Prior Year Claims - Full Year, Excluding Interest Earned	$	40.7		$	66.9		$	187.7
(balances to Schedule H Part 3 Line 3.3 Column 2)

Note: Group A&H for Unum Life Insurance Company of America includes group long- and short-term disability, group accidental death & dismemberment, and group voluntary disability, cancer, and critical illness products reported in our Unum US segment as well as the reinsurance pools reported in our Corporate and Other segment.

14.3

Notes to Statistical Supplement

Non-GAAP Financial Measures

We analyze our Company’s performance using non-GAAP financial measures which exclude certain items and the related tax thereon from net income. We believe operating income or loss excluding realized investment gains and losses, which are recurring, is a better performance measure and a better indicator of the profitability and underlying trends in our business. Realized investment gains and losses are dependent on market conditions and general economic events and are not necessarily related to decisions regarding our Company’s underlying business. We believe book value per common share excluding the components of Accumulated Other Comprehensive Income, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures.

2010 Significant Transactions and Events

Share Repurchase Program

In May 2010, our board of directors authorized the repurchase of up to $500.0 million of Unum Group’s common stock. The share repurchase program has an expiration date of May 2011. During 2010, we repurchased 16.4 million shares, at a cost of $356.0 million, including commissions of $0.3 million, under this share repurchase program. The dollar value of shares that may yet be purchased under this program was $144.3 million at December 31, 2010. Stock repurchases are reflected as treasury stock in our consolidated balance sheets.

Financing

In 2010, we issued $400.0 million of unsecured senior notes in a public offering. These notes, due in 2020, bear interest at a fixed rate of 5.625% and are payable semi-annually. The notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt. In addition, these notes are effectively subordinated to any indebtedness of our subsidiaries.

During 2010, we made principal payments of $58.3 million and $10.0 million on our senior secured non-recourse floating rate notes issued by Northwind Holdings, LLC and Tailwind Holdings, LLC, respectively. We also purchased and retired $10.0 million of our 7.08% medium-term notes due 2024.

Tax Law Change

In March 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 were signed into law. Among other things, the new legislation reduces the tax benefits available to an employer that receives a postretirement prescription drug coverage subsidy from the federal government under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Under the new legislation, to the extent our future postretirement prescription drug coverage expenses are reimbursed under the subsidy program, the expenses covered by the subsidy will no longer be tax

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deductible after 2012. Employers that receive the subsidy must recognize the deferred tax effects relating to the future postretirement prescription drug coverage in the period the legislation was enacted. Our income tax expense for 2010 includes a non-cash tax charge of $10.2 million which was recorded in the first quarter of 2010 to reflect the impact of the tax law change.

2009 Significant Transactions and Events

Financing

In September 2009, we issued $350.0 million of unsecured senior notes in a public offering. These notes, due in 2016, bear interest at a fixed rate of 7.125% and are payable semi-annually. The notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt.

During 2009, we made principal payments of $48.0 million and $10.0 million on our senior secured non-recourse variable rate notes issued by Northwind Holdings and Tailwind Holdings, respectively. We also purchased and retired the remaining $132.2 million of our 5.859% senior notes due May 2009, $1.2 million aggregate principal of our 7.19% medium-term notes due 2028, and $0.6 million aggregate principal of our 6.75% notes due 2028 and repaid $58.3 million of reverse repurchase agreements outstanding at December 31, 2008.

Accounting Developments

Accounting Standards Codification (ASC) 105 “Generally Accepted Accounting Principles”

In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards Codification (Codification) as the source of authoritative accounting principles to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Securities and Exchange Commission (SEC) rules and interpretive releases, which may not be included in their entirety within the Codification, will remain as authoritative GAAP for SEC registrants. We adopted Codification effective July 1, 2009. This adoption of Codification had no effect on our financial position or results of operations.

ASC 320 “Investments - Debt and Equity Securities”

In April 2009, the FASB issued a new accounting standard, now included in ASC 320, which amends the other-than-temporary impairment guidance for debt securities and expands and increases the frequency of previously existing disclosures for other-than-temporary impairments. The measure of impairment remains fair value. Under the standard, an other-than-temporaryimpairment must be recognized in earnings for a debt security in an unrealized loss position when an entity either (a) has the intent to sell the debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery. We adopted this standard effective April 1, 2009. The cumulative effect of applying the provisions of this standard increased the April 1, 2009 opening balance of retained earnings $14.3 million, net of tax of $7.7 million, with a corresponding adjustment to accumulated other comprehensive income (loss).

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15.1

2008 Significant Transactions and Events

Stock Repurchase Agreement

During 2007, our board of directors authorized the repurchase of up to $700.0 million of Unum Group’s common stock. During 2008, we repurchased $700.0 million or 29.9 million shares of common stock under this share repurchase program.

Financing

During 2008, we purchased and retired $17.8 million of our outstanding 5.859% notes due May 2009 and $175.0 million of our 5.997% senior notes due May 2008. We made principal payments of $59.3 million and $10.0 million on our senior secured non-recourse variable rate notes issued by Northwind Holdings and Tailwind Holdings, respectively. We also purchased and retired $36.6 million of our 6.85% senior debentures due 2015. The costs associated with this debt reduction decreased our 2008 income approximately $0.4 million before tax, or $0.3 million after tax.

15.2

Attached files

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