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

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8-K - UNUM GROUP 8-K - Unum Group	a6809456.htm
EX-99.1 - EXHIBIT 99.1 - Unum Group	a6809456ex99_1.htm

Exhibit 99.2

Unum Group
Statistical Supplement Second Quarter 2011

TABLE OF CONTENTS

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

	Page

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

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

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

N.M. = not a meaningful percentage

Unum Group Financial Highlights

	Three Months Ended						Six Months Ended					Year Ended
	6/30/2011			6/30/2010			6/30/2011		6/30/2010			12/31/2010		12/31/2009		12/31/2008
Financial Results

Premium Income	$	1,875.0		$	1,849.8		$	3,744.5	$	3,713.0		$	7,431.4	$	7,475.5	$	7,783.3

Segment Operating Revenue	$	2,568.1		$	2,540.1		$	5,116.0	$	5,076.1		$	10,168.5	$	10,079.3	$	10,448.2
Net Realized Investment Gain (Loss)		(3.6	)		(29.5	)		11.6		(3.9	)		24.7		11.7		(465.9	)

Revenue	$	2,564.5		$	2,510.6		$	5,127.6	$	5,072.2		$	10,193.2	$	10,091.0	$	9,982.3

Net Income	$	229.8		$	209.7		$	455.2	$	439.5		$	886.1	$	852.6	$	553.2

Assets							$	58,015.8	$	56,792.2		$	57,307.7	$	54,477.0	$	49,417.4

Stockholders' Equity							$	9,082.8	$	8,871.7		$	8,944.4	$	8,500.1	$	6,397.9

2010
● Six months ended June 30, 2010 and year ended December 31, 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				Six Months Ended				Year Ended
	6/30/2011		6/30/2010		6/30/2011		6/30/2010		12/31/2010		12/31/2009		12/31/2008
Per Common Share Information

Net Income
Assuming Dilution	$	0.75	$	0.63	$	1.46	$	1.32	$	2.71	$	2.57	$	1.62
Basic	$	0.75	$	0.63	$	1.47	$	1.32	$	2.72	$	2.57	$	1.62

Dividends Paid	$	0.0925	$	0.0825	$	0.1850	$	0.1650	$	0.350	$	0.315	$	0.300

Book Value per Share:
As Reported					$	29.94	$	27.12	$	28.25	$	25.62	$	19.32

Excluding Net Unrealized Gain (Loss) on Securities
and Net Gain on Cash Flow Hedges					$	27.21	$	24.36	$	25.82	$	23.36	$	20.45

Excluding Foreign Currency Translation Adjustment					$	27.48	$	24.84	$	26.17	$	23.60	$	20.99

Excluding Unrecognized Pension and Postretirement
Benefit Costs					$	28.50	$	25.78	$	27.17	$	24.59	$	22.22

Price (UNM closing price on last trading day of period)					$	25.48	$	21.70	$	24.22	$	19.52	$	18.60

See page 4 of this statistical supplement for detail on the components of AOCI excluded from Total Stockholders' Equity in computing the book value per share measures listed above.

Total Stockholders' Equity, Net Unrealized Gain on Securities, Net Gain on Cash Flow Hedges, Foreign Currency Translation Adjustment, and Unrecognized Pension and Postretirement Benefit Costs at June 30, 2010 are $8,871.7 million, $476.4 million, $424.7 million, $(156.7) million, and $(306.5) million, respectively.

Total Stockholders' Equity, Net Unrealized Loss on Securities, Net Gain on Cash Flow Hedges, Foreign Currency Translation Adjustment, and Unrecognized Pension and Postretirement Benefit Costs at December 31, 2008 are $6,397.9 million, $(832.6) million, $458.5 million, $(177.6) million, and $(406.5) million, respectively.

1.1

Unum Group Consolidated Statements of Income

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Revenue
Premium Income	$	1,875.0		$	1,849.8		$	3,744.5		$	3,713.0		$	7,431.4		$	7,475.5		$	7,783.3
Net Investment Income		637.1			629.8			1,255.8			1,242.8			2,495.5			2,346.6			2,389.0
Net Realized Investment Gain (Loss)		(3.6	)		(29.5	)		11.6			(3.9	)		24.7			11.7			(465.9	)
Other Income		56.0			60.5			115.7			120.3			241.6			257.2			275.9
Total Revenue		2,564.5			2,510.6			5,127.6			5,072.2			10,193.2			10,091.0			9,982.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		1,599.4			1,579.6			3,192.4			3,148.5			6,354.1			6,291.6			6,626.4
Commissions		217.9			207.8			442.2			426.1			855.4			837.1			853.3
Interest and Debt Expense - Non-recourse Debt		2.8			3.3			5.8			6.4			12.9			18.6			39.3
Interest and Debt Expense - All Other Debt		32.3			30.8			67.2			61.1			128.9			106.8			117.4
Deferral of Acquisition Costs		(158.2	)		(149.7	)		(316.5	)		(304.6	)		(607.7	)		(593.6	)		(590.9	)
Amortization of Deferred Acquisition Costs		136.9			135.9			275.2			277.1			547.1			526.2			519.1
Other Expenses		395.4			394.8			793.1			788.3			1,571.2			1,612.0			1,593.7
Total Benefits and Expenses		2,226.5			2,202.5			4,459.4			4,402.9			8,861.9			8,798.7			9,158.3

Income Before Income Taxes		338.0			308.1			668.2			669.3			1,331.3			1,292.3			824.0

Income Taxes		108.2			98.4			213.0			229.8			445.2			439.7			270.8

Net Income	$	229.8		$	209.7		$	455.2		$	439.5		$	886.1		$	852.6		$	553.2

Average Number of Shares Outstanding
Basic		306,316,215			331,236,773			309,512,996			331,752,553			325,839,020			331,266,247			341,022,792
Dilutive Securities:
Options and Other Nonvested Stock Awards		1,094,749			1,395,384			1,342,396			1,324,937			1,382,036			869,934			537,505
Assuming Dilution		307,410,964			332,632,157			310,855,392			333,077,490			327,221,056			332,136,181			341,560,297

Actual Number of Shares Outstanding								303,386,914			327,141,993			316,573,452			331,809,247			331,120,345

Unum Group Sales Data By Segment

	Three Months Ended							Six Months Ended							Year Ended
	6/30/2011		6/30/2010		% Change			6/30/2011		6/30/2010		% Change			12/31/2010		12/31/2009		12/31/2008

Unum US
Fully Insured Products	$	156.5	$	144.1		8.6	%	$	336.5	$	307.8		9.3	%	$	669.4	$	709.2	$	701.5
Administrative Services Only (ASO) Products		1.2		1.1		9.1			2.6		1.7		52.9			6.3		7.7		7.2
Total Unum US Segment		157.7		145.2		8.6			339.1		309.5		9.6			675.7		716.9		708.7

Unum UK		23.7		32.8		(27.7	)		41.3		57.0		(27.5	)		119.2		123.2		99.5

Colonial Life		85.7		83.9		2.1			156.3		157.2		(0.6	)		358.8		343.8		340.2

Individual Disability - Closed Block		0.2		0.2		-			0.3		0.4		(25.0	)		0.8		1.5		2.4

Total Sales	$	267.3	$	262.1		2.0		$	537.0	$	524.1		2.5		$	1,154.5	$	1,185.4	$	1,150.8

Unum Group Sales Data for Unum US Segment

	Three Months Ended							Six Months Ended							Year Ended
	6/30/2011		6/30/2010		% Change			6/30/2011		6/30/2010		% Change			12/31/2010		12/31/2009		12/31/2008
Sales by Product

Fully Insured Products
Group Disability, Group Life, and AD&D
Group Long-term Disability	$	38.3	$	32.2		18.9	%	$	67.8	$	59.8		13.4	%	$	148.2	$	182.1	$	190.3
Group Short-term Disability		17.7		17.1		3.5			31.7		31.4		1.0			80.3		83.9		71.5
Group Life		40.9		36.3		12.7			71.7		64.8		10.6			166.9		184.9		165.4
AD&D		3.8		3.7		2.7			6.3		7.2		(12.5	)		18.1		18.7		17.2
Subtotal		100.7		89.3		12.8			177.5		163.2		8.8			413.5		469.6		444.4
Supplemental and Voluntary
Individual Disability - Recently Issued		13.5		10.3		31.1			27.7		19.9		39.2			42.7		51.6		57.9
Group Long-term Care		8.4		5.2		61.5			15.4		10.6		45.3			25.8		22.4		32.2
Individual Long-term Care		-		0.1		-			-		0.1		-			0.2		3.7		8.4
Voluntary Benefits		33.9		39.2		(13.5	)		115.9		114.0		1.7			187.2		161.9		158.6
Subtotal		55.8		54.8		1.8			159.0		144.6		10.0			255.9		239.6		257.1

Total Fully Insured Products		156.5		144.1		8.6			336.5		307.8		9.3			669.4		709.2		701.5

ASO Products		1.2		1.1		9.1			2.6		1.7		52.9			6.3		7.7		7.2

Total Sales	$	157.7	$	145.2		8.6		$	339.1	$	309.5		9.6		$	675.7	$	716.9	$	708.7

Sales by Market Sector

Group Disability, Group Life, and AD&D
Core Market (< 2,000 lives)	$	74.9	$	64.6		15.9	%	$	127.3	$	117.7		8.2	%	$	294.0	$	320.6	$	297.2
Large Case Market		25.8		24.7		4.5			50.2		45.5		10.3			119.5		149.0		147.2
Subtotal		100.7		89.3		12.8			177.5		163.2		8.8			413.5		469.6		444.4

Supplemental and Voluntary		55.8		54.8		1.8			159.0		144.6		10.0			255.9		239.6		257.1

Total Fully Insured Products		156.5		144.1		8.6			336.5		307.8		9.3			669.4		709.2		701.5

ASO Products		1.2		1.1		9.1			2.6		1.7		52.9			6.3		7.7		7.2

Total Sales	$	157.7	$	145.2		8.6		$	339.1	$	309.5		9.6		$	675.7	$	716.9	$	708.7

3.1

Unum Group Sales Data for Unum UK Segment

	Three Months Ended							Six Months Ended							Year Ended
	6/30/2011		6/30/2010		% Change			6/30/2011		6/30/2010		% Change			12/31/2010		12/31/2009		12/31/2008

Group Long-term Disability	$	12.6	$	13.7		(8.0	)%	$	20.8	$	25.4		(18.1	)%	$	53.1	$	56.8	$	68.8
Group Life		9.7		16.1		(39.8	)		16.5		27.0		(38.9	)		57.3		53.8		19.6
Supplemental and Voluntary		1.4		3.0		(53.3	)		4.0		4.6		(13.0	)		8.8		12.6		11.1

Total Sales	$	23.7	$	32.8		(27.7	)	$	41.3	$	57.0		(27.5	)	$	119.2	$	123.2	$	99.5

(in millions of pounds)

Group Long-term Disability	£	7.8	£	9.2		(15.2	)%	£	12.9	£	16.7		(22.8	)%	£	34.4	£	36.5	£	37.6
Group Life		5.8		10.8		(46.3	)		10.1		17.7		(42.9	)		37.1		33.4		10.9
Supplemental and Voluntary		0.9		2.0		(55.0	)		2.5		3.0		(16.7	)		5.7		8.0		6.0

Total Sales	£	14.5	£	22.0		(34.1	)	£	25.5	£	37.4		(31.8	)	£	77.2	£	77.9	£	54.5

Unum Group Sales Data for Colonial Life Segment

	Three Months Ended							Six Months Ended							Year Ended
	6/30/2011		6/30/2010		% Change			6/30/2011		6/30/2010		% Change			12/31/2010		12/31/2009		12/31/2008

Accident, Sickness, and Disability	$	58.4	$	56.1		4.1	%	$	105.6	$	104.8		0.8	%	$	237.4	$	221.1	$	222.1
Life		15.0		15.8		(5.1	)		28.3		30.1		(6.0	)		65.7		68.3		64.0
Cancer and Critical Illness		12.3		12.0		2.5			22.4		22.3		0.4			55.7		54.4		54.1

Total Sales	$	85.7	$	83.9		2.1		$	156.3	$	157.2		(0.6	)	$	358.8	$	343.8	$	340.2

3.2

Unum Group Consolidated Balance Sheets

	June 30,			December 31,
	2011			2010			2009
Assets
Investments
Fixed Maturity Securities	$	40,768.4		$	40,035.6		$	37,914.4
Mortgage Loans		1,576.3			1,516.8			1,404.0
Policy Loans		2,948.8			2,996.1			2,878.0
Other Long-term Investments		573.9			529.3			233.5
Short-term Investments		928.6			1,163.1			865.5
Total Investments		46,796.0			46,240.9			43,295.4

Cash and Bank Deposits		71.2			53.6			71.6
Accounts and Premiums Receivable		1,690.4			1,665.8			1,732.4
Reinsurance Recoverable		4,785.8			4,827.9			4,996.9
Accrued Investment Income		766.5			669.8			642.5
Deferred Acquisition Costs		2,557.6			2,521.1			2,482.5
Goodwill		201.6			201.2			201.6
Property and Equipment		487.2			476.8			443.5
Other Assets		659.5			650.6			610.6

Total Assets	$	58,015.8		$	57,307.7		$	54,477.0

Liabilities
Policy and Contract Benefits	$	1,527.4		$	1,565.0		$	1,736.9
Reserves for Future Policy and Contract Benefits		40,325.9			39,715.0			37,740.8
Unearned Premiums		533.1			436.7			452.0
Other Policyholders' Funds		1,639.2			1,669.7			1,662.3
Income Tax Payable		124.4			135.7			114.5
Deferred Income Tax		507.6			417.2			273.2
Short-term Debt		140.4			225.1			-
Long-term Debt - Non-recourse		667.5			716.9			785.2
Long-term Debt - All Other		1,921.6			1,914.4			1,764.4
Other Liabilities		1,545.9			1,567.6			1,447.6

Total Liabilities		48,933.0			48,363.3			45,976.9

Stockholders' Equity
Common Stock		35.8			36.5			36.4
Additional Paid-in Capital		2,577.2			2,615.4			2,587.4
Accumulated Other Comprehensive Income (Loss)
Net Unrealized Gain on Securities		471.7			410.4			379.6
Net Gain on Cash Flow Hedges		355.9			361.0			370.8
Foreign Currency Translation Adjustment		(82.8	)		(110.9	)		(78.7	)
Unrecognized Pension and Postretirement Benefit Costs		(308.8	)		(318.6	)		(330.7	)
Retained Earnings		7,313.7			7,060.8			6,289.5
Treasury Stock		(1,279.9	)		(1,110.2	)		(754.2	)

Total Stockholders' Equity		9,082.8			8,944.4			8,500.1

Total Liabilities and Stockholders' Equity	$	58,015.8		$	57,307.7		$	54,477.0

Unum Group Deferred Acquisition Costs by Segment

	Unum US			Unum UK			Colonial Life			Consolidated

Balances at December 31, 2008	$	1,661.8		$	54.7		$	755.9		$	2,472.4
Capitalized		335.5			29.1			229.0			593.6
Amortized		(317.2	)		(30.5	)		(178.5	)		(526.2	)
Adjustment Related to Unrealized Investment Gains/Losses		(17.7	)		-			(45.2	)		(62.9	)
Foreign Currency		-			5.6			-			5.6
Balances at December 31, 2009		1,662.4			58.9			761.2			2,482.5
Capitalized		333.0			28.3			246.4			607.7
Amortized		(332.9	)		(27.0	)		(187.2	)		(547.1	)
Adjustment Related to Unrealized Investment Gains/Losses		(4.6	)		-			(15.4	)		(20.0	)
Foreign Currency		-			(2.0	)		-			(2.0	)
Balances at December 31, 2010		1,657.9			58.2			805.0			2,521.1
Capitalized		175.6			13.9			127.0			316.5
Amortized		(165.7	)		(14.6	)		(94.9	)		(275.2	)
Adjustment Related to Unrealized Investment Gains/Losses		(1.9	)		-			(4.6	)		(6.5	)
Foreign Currency		-			1.7			-			1.7
Balances at June 30, 2011	$	1,665.9		$	59.2		$	832.5		$	2,557.6

4.1

Unum Group Balance Sheets by Segment - June 30, 2011

	Unum US
			Group Life
			and Accidental		Supplemental								Individual
	Group		Death &		and		Total				Colonial		Disability -		Corporate
	Disability		Dismemberment		Voluntary		Unum US		Unum UK		Life		Closed Block		and Other			Consolidated
Assets
Investments	$	9,971.7	$	2,344.5	$	10,262.3	$	22,578.5	$	3,284.6	$	2,134.4	$	12,411.4	$	6,387.1		$	46,796.0
Deferred Acquisition Costs		119.3		98.4		1,448.2		1,665.9		59.2		832.5		-		-			2,557.6
Goodwill		2.5		-		187.5		190.0		11.6		-		-		-			201.6
All Other		664.0		151.1		177.3		992.4		228.3		223.3		3,061.3		3,955.3			8,460.6
Total Assets	$	10,757.5	$	2,594.0	$	12,075.3	$	25,426.8	$	3,583.7	$	3,190.2	$	15,472.7	$	10,342.4		$	58,015.8

Liabilities
Reserves and Policyholder Benefits	$	8,725.2	$	1,638.6	$	8,858.5	$	19,222.3	$	2,552.6	$	1,716.6	$	13,192.3	$	7,341.8		$	44,025.6
Debt		80.1		-		31.6		111.7		-		-		590.0		2,027.8			2,729.5
All Other		276.9		26.7		388.8		692.4		122.4		273.8		166.5		922.8			2,177.9
Total Liabilities		9,082.2		1,665.3		9,278.9		20,026.4		2,675.0		1,990.4		13,948.8		10,292.4			48,933.0

Other Allocated Stockholders' Equity		1,560.9		891.0		2,759.4		5,211.3		772.6		1,114.7		1,317.3		(160.7	)		8,255.2
Net Unrealized Gain/Loss on Securities and
Net Gain on Cash Flow Hedges		114.4		37.7		37.0		189.1		136.1		85.1		206.6		210.7			827.6
Total Allocated Stockholders' Equity		1,675.3		928.7		2,796.4		5,400.4		908.7		1,199.8		1,523.9		50.0			9,082.8
Total Liabilities and Allocated
Stockholders' Equity	$	10,757.5	$	2,594.0	$	12,075.3	$	25,426.8	$	3,583.7	$	3,190.2	$	15,472.7	$	10,342.4		$	58,015.8

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

4.2

Unum Group Balance Sheets by Segment - December 31, 2010

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

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

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

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

4.3

Unum Group Financial Results by Segment

	Three Months Ended							Six Months Ended
	6/30/2011		6/30/2010		% Change			6/30/2011		6/30/2010		% Change
Premium Income
Unum US	$	1,220.6	$	1,216.5		0.3	%	$	2,440.0	$	2,432.6		0.3	%
Unum UK		175.8		152.9		15.0			342.9		318.7		7.6
Colonial Life		282.0		267.7		5.3			562.4		532.8		5.6
Individual Disability - Closed Block		196.3		212.5		(7.6	)		398.6		426.5		(6.5	)
Corporate and Other		0.3		0.2		50.0			0.6		2.4		(75.0	)
		1,875.0		1,849.8		1.4			3,744.5		3,713.0		0.8
Net Investment Income
Unum US		329.1		318.7		3.3			650.7		623.3		4.4
Unum UK		51.1		43.1		18.6			96.0		82.9		15.8
Colonial Life		35.8		29.3		22.2			67.1		59.2		13.3
Individual Disability - Closed Block		180.3		187.3		(3.7	)		362.3		378.0		(4.2	)
Corporate and Other		40.8		51.4		(20.6	)		79.7		99.4		(19.8	)
		637.1		629.8		1.2			1,255.8		1,242.8		1.0
Other Income
Unum US		29.7		30.4		(2.3	)		60.7		60.9		(0.3	)
Unum UK		-		0.4		(100.0	)		0.1		0.9		(88.9	)
Colonial Life		0.2		0.1		100.0			0.3		0.3		-
Individual Disability - Closed Block		21.7		23.1		(6.1	)		44.3		44.6		(0.7	)
Corporate and Other		4.4		6.5		(32.3	)		10.3		13.6		(24.3	)
		56.0		60.5		(7.4	)		115.7		120.3		(3.8	)
Total Operating Revenue
Unum US		1,579.4		1,565.6		0.9			3,151.4		3,116.8		1.1
Unum UK		226.9		196.4		15.5			439.0		402.5		9.1
Colonial Life		318.0		297.1		7.0			629.8		592.3		6.3
Individual Disability - Closed Block		398.3		422.9		(5.8	)		805.2		849.1		(5.2	)
Corporate and Other		45.5		58.1		(21.7	)		90.6		115.4		(21.5	)
		2,568.1		2,540.1		1.1			5,116.0		5,076.1		0.8

Unum Group Financial Results by Segment

	Three Months Ended									Six Months Ended
	6/30/2011			6/30/2010			% Change			6/30/2011			6/30/2010			% Change
Benefits and Expenses
Unum US	$	1,361.3		$	1,349.6			0.9	%	$	2,724.2		$	2,701.6			0.8	%
Unum UK		172.2			143.5			20.0			335.6			289.0			16.1
Colonial Life		242.8			223.2			8.8			485.6			445.4			9.0
Individual Disability - Closed Block		387.9			410.5			(5.5	)		784.9			825.0			(4.9	)
Corporate and Other		62.3			75.7			(17.7	)		129.1			141.9			(9.0	)
		2,226.5			2,202.5			1.1			4,459.4			4,402.9			1.3
Income (Loss) Before Income Taxes and
Net Realized Investment Gain (Loss)
Unum US		218.1			216.0			1.0			427.2			415.2			2.9
Unum UK		54.7			52.9			3.4			103.4			113.5			(8.9	)
Colonial Life		75.2			73.9			1.8			144.2			146.9			(1.8	)
Individual Disability - Closed Block		10.4			12.4			(16.1	)		20.3			24.1			(15.8	)
Corporate and Other		(16.8	)		(17.6	)		4.5			(38.5	)		(26.5	)		(45.3	)
		341.6			337.6			1.2			656.6			673.2			(2.5	)
Income Taxes		109.6			109.0			0.6			208.9			231.3			(9.7	)

Income Before Net Realized Investment Gain (Loss)		232.0			228.6			1.5			447.7			441.9			1.3

Net Realized Investment Gain (Loss)		(3.6	)		(29.5	)		87.8			11.6			(3.9	)	N.M.

Tax Expense (Benefit) on Net Realized Investment
Gain (Loss)		(1.4	)		(10.6	)		(86.8	)		4.1			(1.5	)	N.M.

Net Income	$	229.8		$	209.7			9.6		$	455.2		$	439.5			3.6

5.1

Unum Group Quarterly Historical Financial Results by Segment

	6/30/11		3/31/11		12/31/10		9/30/10		6/30/10		3/31/10		12/31/09		9/30/09		6/30/09
Premium Income
Unum US	$	1,220.6	$	1,219.4	$	1,211.4	$	1,210.6	$	1,216.5	$	1,216.1	$	1,207.9	$	1,215.2	$	1,223.7
Unum UK		175.8		167.1		170.5		161.4		152.9		165.8		180.0		169.7		173.4
Colonial Life		282.0		280.4		273.6		269.3		267.7		265.1		257.4		253.5		250.8
Individual Disability - Closed Block		196.3		202.3		212.0		208.5		212.5		214.0		219.4		221.5		228.0
Corporate and Other		0.3		0.3		0.7		0.4		0.2		2.2		1.0		1.2		-
		1,875.0		1,869.5		1,868.2		1,850.2		1,849.8		1,863.2		1,865.7		1,861.1		1,875.9
Net Investment Income
Unum US		329.1		321.6		327.6		312.9		318.7		304.6		302.3		302.8		304.1
Unum UK		51.1		44.9		48.6		39.0		43.1		39.8		40.8		22.5		34.3
Colonial Life		35.8		31.3		31.4		31.9		29.3		29.9		28.9		29.4		28.4
Individual Disability - Closed Block		180.3		182.0		182.9		185.5		187.3		190.7		182.4		184.4		187.4
Corporate and Other		40.8		38.9		43.8		49.1		51.4		48.0		41.3		40.5		43.4
		637.1		618.7		634.3		618.4		629.8		613.0		595.7		579.6		597.6
Other Income
Unum US		29.7		31.0		32.7		29.7		30.4		30.5		28.3		28.8		30.0
Unum UK		-		0.1		0.1		0.2		0.4		0.5		0.6		0.6		0.6
Colonial Life		0.2		0.1		0.2		0.2		0.1		0.2		0.1		0.1		0.2
Individual Disability - Closed Block		21.7		22.6		23.4		22.7		23.1		21.5		23.8		24.3		25.8
Corporate and Other		4.4		5.9		6.7		5.4		6.5		7.1		8.3		8.1		10.6
		56.0		59.7		63.1		58.2		60.5		59.8		61.1		61.9		67.2
Total Operating Revenue
Unum US		1,579.4		1,572.0		1,571.7		1,553.2		1,565.6		1,551.2		1,538.5		1,546.8		1,557.8
Unum UK		226.9		212.1		219.2		200.6		196.4		206.1		221.4		192.8		208.3
Colonial Life		318.0		311.8		305.2		301.4		297.1		295.2		286.4		283.0		279.4
Individual Disability - Closed Block		398.3		406.9		418.3		416.7		422.9		426.2		425.6		430.2		441.2
Corporate and Other		45.5		45.1		51.2		54.9		58.1		57.3		50.6		49.8		54.0
		2,568.1		2,547.9		2,565.6		2,526.8		2,540.1		2,536.0		2,522.5		2,502.6		2,540.7

Unum Group Quarterly Historical Financial Results by Segment

	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			12/31/09			9/30/09			6/30/09
Benefits and Expenses
Unum US	$	1,361.3		$	1,362.9		$	1,365.6		$	1,348.5		$	1,349.6		$	1,352.0		$	1,335.5		$	1,349.7		$	1,366.5
Unum UK		172.2			163.4			171.1			153.4			143.5			145.5			160.1			134.1			141.0
Colonial Life		242.8			242.8			244.4			226.9			223.2			222.2			218.1			212.6			208.1
Individual Disability - Closed Block		387.9			397.0			408.0			406.9			410.5			414.5			419.8			423.0			431.2
Corporate and Other		62.3			66.8			68.5			65.7			75.7			66.2			67.2			63.5			70.0
		2,226.5			2,232.9			2,257.6			2,201.4			2,202.5			2,200.4			2,200.7			2,182.9			2,216.8
Income (Loss) Before Income Taxes and
Net Realized Investment Gain (Loss)
Unum US		218.1			209.1			206.1			204.7			216.0			199.2			203.0			197.1			191.3
Unum UK		54.7			48.7			48.1			47.2			52.9			60.6			61.3			58.7			67.3
Colonial Life		75.2			69.0			60.8			74.5			73.9			73.0			68.3			70.4			71.3
Individual Disability - Closed Block		10.4			9.9			10.3			9.8			12.4			11.7			5.8			7.2			10.0
Corporate and Other		(16.8	)		(21.7	)		(17.3	)		(10.8	)		(17.6	)		(8.9	)		(16.6	)		(13.7	)		(16.0	)
		341.6			315.0			308.0			325.4			337.6			335.6			321.8			319.7			323.9
Income Taxes		109.6			99.3			99.4			105.5			109.0			122.3			103.5			108.1			108.1

Income Before Net Realized
Investment Gain (Loss)		232.0			215.7			208.6			219.9			228.6			213.3			218.3			211.6			215.8

Net Realized Investment Gain (Loss)		(3.6	)		15.2			27.5			1.1			(29.5	)		25.6			(25.9	)		14.9			87.3

Tax Expense (Benefit) on Net Realized
Investment Gain (Loss)		(1.4	)		5.5			10.3			0.2			(10.6	)		9.1			(7.0	)		5.4			35.9

Net Income	$	229.8		$	225.4		$	225.8		$	220.8		$	209.7		$	229.8		$	199.4		$	221.1		$	267.2

Net Income Per Common Share -
Assuming Dilution	$	0.75		$	0.72		$	0.71		$	0.68		$	0.63		$	0.69		$	0.60		$	0.66		$	0.80

6.1

Unum Group Financial Results for Unum US Segment

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	1,220.6		$	1,216.5		$	2,440.0		$	2,432.6		$	4,854.6		$	4,873.1		$	4,963.0
Net Investment Income		329.1			318.7			650.7			623.3			1,263.8			1,200.5			1,136.4
Other Income		29.7			30.4			60.7			60.9			123.3			118.7			132.7
Total Operating Revenue		1,579.4			1,565.6			3,151.4			3,116.8			6,241.7			6,192.3			6,232.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		967.7			966.7			1,928.4			1,919.3			3,849.4			3,855.9			3,998.4
Commissions		134.4			130.6			273.7			266.8			525.6			516.6			518.6
Interest and Debt Expense		0.2			0.3			0.5			0.6			1.2			2.0			4.2
Deferral of Acquisition Costs		(87.5	)		(83.3	)		(175.6	)		(171.2	)		(333.0	)		(335.5	)		(329.7	)
Amortization of Deferred Acquisition Costs		82.4			82.7			165.7			169.3			332.9			317.2			320.3
Other Expenses		264.1			252.6			531.5			516.8			1,039.6			1,061.1			1,036.2
Total Benefits and Expenses		1,361.3			1,349.6			2,724.2			2,701.6			5,415.7			5,417.3			5,548.0

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	218.1		$	216.0		$	427.2		$	415.2		$	826.0		$	775.0		$	684.1

Operating Ratios
Benefit Ratio		79.3	%		79.5	%		79.0	%		78.9	%		79.3	%		79.1	%		80.6	%
Other Expense Ratio		21.6	%		20.8	%		21.8	%		21.2	%		21.4	%		21.8	%		20.9	%
Before-tax Profit Margin		17.9	%		17.8	%		17.5	%		17.1	%		17.0	%		15.9	%		13.8	%

Unum Group Financial Results for Unum US Group Disability

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	$	394.6		$	413.1		$	791.6		$	828.7		$	1,639.4		$	1,726.9		$	1,838.5
Group Short-term Disability		112.8			107.6			223.8			213.8			430.9			432.8			435.1
Total Premium Income		507.4			520.7			1,015.4			1,042.5			2,070.3			2,159.7			2,273.6
Net Investment Income		153.5			155.9			301.2			307.2			614.6			629.4			631.3
Other Income		21.8			21.6			44.0			43.3			86.7			88.9			100.2
Total Operating Revenue		682.7			698.2			1,360.6			1,393.0			2,771.6			2,878.0			3,005.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		428.1			440.6			854.4			879.9			1,747.8			1,862.8			2,043.9
Commissions		39.5			39.6			80.3			80.7			159.7			162.2			165.9
Interest and Debt Expense		0.2			0.3			0.5			0.6			1.2			2.0			4.2
Deferral of Acquisition Costs		(15.0	)		(15.0	)		(30.2	)		(31.0	)		(59.0	)		(62.5	)		(59.4	)
Amortization of Deferred Acquisition Costs		14.8			16.3			29.9			32.7			63.5			67.3			76.7
Other Expenses		136.6			132.3			273.7			270.2			543.7			572.6			572.4
Total Benefits and Expenses		604.2			614.1			1,208.6			1,233.1			2,456.9			2,604.4			2,803.7

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	78.5		$	84.1		$	152.0		$	159.9		$	314.7		$	273.6		$	201.4

Operating Ratios
Benefit Ratio		84.4	%		84.6	%		84.1	%		84.4	%		84.4	%		86.3	%		89.9	%
Other Expense Ratio		26.9	%		25.4	%		27.0	%		25.9	%		26.3	%		26.5	%		25.2	%
Before-tax Profit Margin		15.5	%		16.2	%		15.0	%		15.3	%		15.2	%		12.7	%		8.9	%

Premium Persistency:
Group Long-term Disability								89.8	%		90.2	%		89.4	%		86.9	%		87.8	%
Group Short-term Disability								90.7	%		89.2	%		88.6	%		86.8	%		82.1	%

Case Persistency:
Group Long-term Disability								89.1	%		88.3	%		88.4	%		87.4	%		89.2	%
Group Short-term Disability								88.1	%		87.4	%		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						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Life	$	274.3		$	271.4		$	547.7		$	541.5		$	1,090.3		$	1,057.7		$	1,062.8
Accidental Death & Dismemberment		26.8			26.3			53.9			52.3			106.1			104.9			127.6
Total Premium Income		301.1			297.7			601.6			593.8			1,196.4			1,162.6			1,190.4
Net Investment Income		33.7			31.5			67.9			63.3			129.6			126.5			126.0
Other Income		0.7			0.6			1.2			1.2			2.4			1.9			2.3
Total Operating Revenue		335.5			329.8			670.7			658.3			1,328.4			1,291.0			1,318.7

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		211.6			209.4			421.8			415.9			839.9			815.5			827.6
Commissions		23.4			21.4			46.9			43.7			89.3			85.4			85.4
Deferral of Acquisition Costs		(13.0	)		(12.4	)		(26.1	)		(25.2	)		(49.3	)		(48.1	)		(40.3	)
Amortization of Deferred Acquisition Costs		10.7			11.0			21.5			23.0			43.3			45.9			55.0
Other Expenses		49.6			48.9			100.6			98.2			196.5			197.6			180.1
Total Benefits and Expenses		282.3			278.3			564.7			555.6			1,119.7			1,096.3			1,107.8

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	53.2		$	51.5		$	106.0		$	102.7		$	208.7		$	194.7		$	210.9

Operating Ratios
Benefit Ratio		70.3	%		70.3	%		70.1	%		70.0	%		70.2	%		70.1	%		69.5	%
Other Expense Ratio		16.5	%		16.4	%		16.7	%		16.5	%		16.4	%		17.0	%		15.1	%
Before-tax Profit Margin		17.7	%		17.3	%		17.6	%		17.3	%		17.4	%		16.7	%		17.7	%

Premium Persistency:
Group Life								87.3	%		92.1	%		91.5	%		86.9	%		83.8	%
Accidental Death & Dismemberment								87.8	%		90.7	%		90.7	%		88.1	%		86.4	%

Case Persistency:
Group Life								88.6	%		88.3	%		88.3	%		87.2	%		89.1	%
Accidental Death & Dismemberment								88.5	%		88.3	%		88.4	%		87.2	%		89.2	%

7.2

Unum Group Financial Results for Unum US Supplemental and Voluntary

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Individual Disability - Recently Issued	$	116.6		$	114.4		$	231.7		$	232.8		$	457.9		$	463.7		$	471.5
Long-term Care		150.8			149.5			301.4			298.7			599.2			594.7			580.7
Voluntary Benefits		144.7			134.2			289.9			264.8			530.8			492.4			446.8
Total Premium Income		412.1			398.1			823.0			796.3			1,587.9			1,550.8			1,499.0
Net Investment Income		141.9			131.3			281.6			252.8			519.6			444.6			379.1
Other Income		7.2			8.2			15.5			16.4			34.2			27.9			30.2
Total Operating Revenue		561.2			537.6			1,120.1			1,065.5			2,141.7			2,023.3			1,908.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		328.0			316.7			652.2			623.5			1,261.7			1,177.6			1,126.9
Commissions		71.5			69.6			146.5			142.4			276.6			269.0			267.3
Deferral of Acquisition Costs		(59.5	)		(55.9	)		(119.3	)		(115.0	)		(224.7	)		(224.9	)		(230.0	)
Amortization of Deferred Acquisition Costs		56.9			55.4			114.3			113.6			226.1			204.0			188.6
Other Expenses		77.9			71.4			157.2			148.4			299.4			290.9			283.7
Total Benefits and Expenses		474.8			457.2			950.9			912.9			1,839.1			1,716.6			1,636.5

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	86.4		$	80.4		$	169.2		$	152.6		$	302.6		$	306.7		$	271.8

Operating Ratios
Benefit Ratios
Individual Disability - Recently Issued		52.0	%		53.5	%		52.1	%		52.0	%		53.3	%		51.4	%		53.3	%
Long-term Care		129.0	%		120.3	%		127.7	%		118.5	%		121.0	%		111.6	%		106.1	%
Voluntary Benefits		50.3	%		56.3	%		50.6	%		56.0	%		55.1	%		56.0	%		58.0	%
Other Expense Ratio		18.9	%		17.9	%		19.1	%		18.6	%		18.9	%		18.8	%		18.9	%
Before-tax Profit Margin		21.0	%		20.2	%		20.6	%		19.2	%		19.1	%		19.8	%		18.1	%

Interest Adjusted Loss Ratios
Individual Disability - Recently Issued		30.7	%		32.8	%		30.8	%		31.7	%		32.5	%		32.5	%		35.9	%
Long-term Care		84.3	%		80.8	%		83.7	%		79.6	%		80.8	%		76.5	%		75.5	%

Premium Persistency:
Individual Disability - Recently Issued								90.1	%		89.8	%		90.7	%		89.6	%		90.7	%
Long-term Care								95.6	%		95.5	%		95.8	%		95.1	%		95.5	%
Voluntary Benefits								79.1	%		80.9	%		80.1	%		79.9	%		80.4	%

7.3

Unum Group Financial Results for Unum UK Segment

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	$	107.6		$	99.6		$	211.0		$	208.9		$	421.2		$	482.4		$	656.3
Group Life		51.9			39.5			99.5			82.3			171.6			147.8			174.6
Supplemental and Voluntary		16.3			13.8			32.4			27.5			57.8			55.9			58.4
Total Premium Income		175.8			152.9			342.9			318.7			650.6			686.1			889.3
Net Investment Income		51.1			43.1			96.0			82.9			170.5			124.5			181.9
Other Income		-			0.4			0.1			0.9			1.2			2.4			2.0
Total Operating Revenue		226.9			196.4			439.0			402.5			822.3			813.0			1,073.2

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		122.7			100.9			238.5			205.5			435.8			373.6			511.4
Commissions		11.4			9.9			22.3			20.2			44.1			46.7			59.0
Deferral of Acquisition Costs		(7.2	)		(7.2	)		(13.9	)		(13.8	)		(28.3	)		(29.1	)		(37.4	)
Amortization of Deferred Acquisition Costs		7.4			6.6			14.6			13.4			27.0			30.5			32.4
Other Expenses		37.9			33.3			74.1			63.7			134.9			141.7			183.8
Total Benefits and Expenses		172.2			143.5			335.6			289.0			613.5			563.4			749.2

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	54.7		$	52.9		$	103.4		$	113.5		$	208.8		$	249.6		$	324.0

Operating Ratios
Benefit Ratio		69.8	%		66.0	%		69.6	%		64.5	%		67.0	%		54.5	%		57.5	%
Other Expense Ratio		21.6	%		21.8	%		21.6	%		20.0	%		20.7	%		20.7	%		20.7	%
Before-tax Profit Margin		31.1	%		34.6	%		30.2	%		35.6	%		32.1	%		36.4	%		36.4	%

Persistency:
Group Long-term Disability								85.0	%		90.8	%		91.3	%		88.5	%		87.4	%
Group Life								87.4	%		92.0	%		92.7	%		80.1	%		74.9	%
Supplemental and Voluntary								86.6	%		88.5	%		88.9	%		88.2	%		87.7	%

Unum Group Financial Results for Unum UK Segment - Continued

(in millions of pounds, except exchange rate)	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	£	66.0		£	66.7		£	130.5		£	136.7		£	272.3		£	309.0		£	353.7
Group Life		31.8			26.5			61.5			53.9			110.9			94.1			93.3
Supplemental and Voluntary		10.0			9.3			20.0			18.0			37.4			35.6			31.6
Total Premium Income		107.8			102.5			212.0			208.6			420.6			438.7			478.6
Net Investment Income		31.3			28.9			59.3			54.3			110.2			79.6			98.5
Other Income		-			0.3			0.1			0.7			0.9			1.6			1.2
Total Operating Revenue		139.1			131.7			271.4			263.6			531.7			519.9			578.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		75.2			67.5			147.5			134.4			281.4			238.3			275.8
Commissions		7.0			6.6			13.8			13.2			28.5			29.8			31.9
Deferral of Acquisition Costs		(4.4	)		(4.9	)		(8.6	)		(9.1	)		(18.3	)		(18.5	)		(20.1	)
Amortization of Deferred Acquisition Costs		4.6			4.5			9.1			8.8			17.4			19.5			17.9
Other Expenses		23.1			22.4			45.7			41.9			87.4			90.2			99.6
Total Benefits and Expenses		105.5			96.1			207.5			189.2			396.4			359.3			405.1

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	£	33.6		£	35.6		£	63.9		£	74.4		£	135.3		£	160.6		£	173.2

Weighted Average Pound/Dollar Exchange Rate		1.628			1.486			1.618			1.526			1.543			1.554			1.871

8.1

Unum Group Financial Results for Colonial Life Segment

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	173.1		$	164.2		$	345.4		$	327.0		$	661.0		$	625.8		$	606.9
Life		46.8			44.1			93.0			87.6			176.5			165.6			157.4
Cancer and Critical Illness		62.1			59.4			124.0			118.2			238.2			223.7			213.0
Total Premium Income		282.0			267.7			562.4			532.8			1,075.7			1,015.1			977.3
Net Investment Income		35.8			29.3			67.1			59.2			122.5			114.3			105.7
Other Income		0.2			0.1			0.3			0.3			0.7			0.5			0.4
Total Operating Revenue		318.0			297.1			629.8			592.3			1,198.9			1,129.9			1,083.4

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		144.3			129.4			288.4			254.2			534.7			480.6			464.0
Commissions		60.5			54.5			121.7			112.2			232.6			215.3			211.8
Deferral of Acquisition Costs		(63.5	)		(59.2	)		(127.0	)		(119.6	)		(246.4	)		(229.0	)		(223.8	)
Amortization of Deferred Acquisition Costs		47.1			46.6			94.9			94.4			187.2			178.5			166.4
Other Expenses		54.4			51.9			107.6			104.2			208.6			203.6			196.9
Total Benefits and Expenses		242.8			223.2			485.6			445.4			916.7			849.0			815.3

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	75.2		$	73.9		$	144.2		$	146.9		$	282.2		$	280.9		$	268.1

Operating Ratios
Benefit Ratio		51.2	%		48.3	%		51.3	%		47.7	%		49.7	%		47.3	%		47.5	%
Other Expense Ratio		19.3	%		19.4	%		19.1	%		19.6	%		19.4	%		20.1	%		20.1	%
Before-tax Profit Margin		26.7	%		27.6	%		25.6	%		27.6	%		26.2	%		27.7	%		27.4	%

Persistency:
Accident, Sickness, and Disability								74.1	%		76.5	%		75.9	%		74.4	%		75.8	%
Life								85.6	%		85.5	%		86.0	%		84.7	%		84.7	%
Cancer and Critical Illness								84.2	%		84.9	%		84.9	%		83.8	%		84.0	%

Unum Group Financial Results for Individual Disability - Closed Block Segment

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	196.3		$	212.5		$	398.6		$	426.5		$	847.0		$	898.5		$	952.3
Net Investment Income		180.3			187.3			362.3			378.0			746.4			740.6			767.5
Other Income		21.7			23.1			44.3			44.6			90.7			100.8			98.6
Total Operating Revenue		398.3			422.9			805.2			849.1			1,684.1			1,739.9			1,818.4

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		345.5			364.6			697.8			729.2			1,451.3			1,489.6			1,544.8
Commissions		11.4			12.8			24.0			26.5			52.0			58.1			62.7
Interest and Debt Expense		2.6			3.0			5.3			5.8			11.7			16.6			35.1
Other Expenses		28.4			30.1			57.8			63.5			124.9			141.3			148.1
Total Benefits and Expenses		387.9			410.5			784.9			825.0			1,639.9			1,705.6			1,790.7

Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	10.4		$	12.4		$	20.3		$	24.1		$	44.2		$	34.3		$	27.7

Operating Ratios
Interest Adjusted Loss Ratio		84.3	%		85.4	%		84.5	%		85.0	%		85.0	%		81.6	%		82.2	%
Other Expense Ratio		14.5	%		14.2	%		14.5	%		14.9	%		14.7	%		15.7	%		15.6	%
Before-tax Profit Margin		5.3	%		5.8	%		5.1	%		5.7	%		5.2	%		3.8	%		2.9	%
Premium Persistency								92.6	%		93.4	%		93.0	%		93.2	%		93.8	%

Unum Group Financial Results for Corporate and Other Segment

	Three Months Ended						Six Months Ended						Year Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	0.3		$	0.2		$	0.6		$	2.4		$	3.5		$	2.7		$	1.4
Net Investment Income		40.8			51.4			79.7			99.4			192.3			166.7			197.5
Other Income		4.4			6.5			10.3			13.6			25.7			34.8			42.2
Total Operating Revenue		45.5			58.1			90.6			115.4			221.5			204.2			241.1

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		19.2			18.0			39.3			40.3			82.9			91.9			107.8
Commissions		0.2			-			0.5			0.4			1.1			0.4			1.2
Interest and Debt Expense		32.3			30.8			67.2			61.1			128.9			106.8			117.4
Other Expenses		10.6			26.9			22.1			40.1			63.2			64.3			28.7
Total Benefits and Expenses		62.3			75.7			129.1			141.9			276.1			263.4			255.1

Operating Loss Before Income Taxes and
Net Realized Investment Gains and Losses	$	(16.8	)	$	(17.6	)	$	(38.5	)	$	(26.5	)	$	(54.6	)	$	(59.2	)	$	(14.0	)

Unum Group Reserves

	June 30, 2011
	Gross														Total
	Policy					Claim Reserves									Reinsurance		Total
	Reserves		%			Incurred		IBNR		%			Total		Ceded		Net

Group Disability	$	-		-	%	$	7,332.3	$	611.0		32.7	%	$	7,943.3	$	66.1	$	7,877.2
Group Life and Accidental Death & Dismemberment		71.1		0.5			774.7		143.9		3.8			989.7		1.1		988.6
Individual Disability - Recently Issued		541.0		3.8			1,036.5		99.9		4.7			1,677.4		89.4		1,588.0
Long-term Care		4,125.9		29.3			410.6		39.5		1.9			4,576.0		47.5		4,528.5
Voluntary Benefits		1,098.2		7.8			40.5		44.8		0.3			1,183.5		25.7		1,157.8
Unum US Segment		5,836.2		41.4			9,594.6		939.1		43.4			16,369.9		229.8		16,140.1

Unum UK Segment		27.1		0.2			2,144.4		128.7		9.4			2,300.2		108.3		2,191.9

Colonial Life Segment		1,359.0		9.6			234.6		84.5		1.3			1,678.1		14.3		1,663.8

Individual Disability - Closed Block Segment		1,184.8		8.4			10,318.8		303.1		43.7			11,806.7		1,472.5		10,334.2

Corporate and Other Segment		5,685.2		40.4			330.8		196.8		2.2			6,212.8		4,835.9		1,376.9

Subtotal, Excluding Unrealized Adjustment	$	14,092.3		100.0	%	$	22,623.2	$	1,652.2		100.0	%		38,367.7		6,660.8		31,706.9

Unrealized Adjustment to Reserves for
Unrealized Gain on Securities														3,485.6		192.3		3,293.3

Consolidated													$	41,853.3	$	6,853.1	$	35,000.2

Unum Group Reserves

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

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

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

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

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

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

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

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

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

12.1

Unum Group Investment Fact Sheet at June 30, 2011


Fixed Maturity Securities (Fair Value)	6/30/2011						Selected Statistics	6/30/11			3/31/11

Public	$	26,337.2			64.6	%	Duration Weighted Book Yield		6.68	%		6.69	%
Asset-Backed Securities (1)		199.5			0.5		Average Duration (in years)		7.61			7.52
Residential Mortgage-Backed Securities (2)		3,011.8			7.4
Commercial Mortgage-Backed Securities		27.9			0.1
Private Placements		4,405.8			10.8
High Yield		2,778.9			6.8
Government Securities		2,580.7			6.3
Municipal Securities		1,369.1			3.4
Redeemable Preferred Stocks (3)		57.5			0.1
Total	$	40,768.4			100.0	%


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

Aaa		13.7	%		13.8	%	Total Non-Current Investments	$	62.9		$	59.9
Aa		9.9			9.8		Total Schedule BA Assets	$	425.5		$	397.3
A		29.2			29.7
Baa		39.8			39.8
Below Baa		7.4			6.9
Total		100.0	%		100.0	%

(1) Includes $0.6 million of high yield asset-backed securities.
(2) Includes $36.1 million of high yield mortgage-backed securities.
(3) Includes $7.0 million of high yield preferred stock.

Unum Group Investment Fact Sheet at June 30, 2011

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

Classification	Fair Value		Net Unrealized Gain		Fair Value of Fixed Maturity Securities with Gross Unrealized Loss		Gross Unrealized Loss		Fair Value of Fixed Maturity Securities with Gross Unrealized Gain		Gross Unrealized Gain
Basic Industry	$	2,260.5	$	179.5	$	263.3	$	10.5	$	1,997.2	$	190.0
Capital Goods		3,521.8		354.8		318.1		13.1		3,203.7		367.9
Communications		2,765.5		325.2		237.7		11.7		2,527.8		336.9
Consumer Cyclical		1,267.6		83.8		208.1		19.0		1,059.5		102.8
Consumer Non-Cyclical		5,104.5		534.5		289.2		14.8		4,815.3		549.3
Energy (Oil & Gas)		3,395.6		439.9		42.9		0.9		3,352.7		440.8
Financial Institutions		3,379.9		147.4		633.1		29.4		2,746.8		176.8
Mortgage/Asset-Backed		3,239.2		357.2		89.3		2.5		3,149.9		359.7
Sovereigns		1,450.2		169.8		7.6		0.1		1,442.6		169.9
Technology		791.0		95.9		43.8		0.8		747.2		96.7
Transportation		1,149.1		135.9		59.2		0.7		1,089.9		136.6
U.S. Government Agencies
and Municipalities		2,499.6		170.2		487.3		36.8		2,012.3		207.0
Utilities		9,886.4		920.1		712.7		30.8		9,173.7		950.9
Redeemable Preferred Stocks		57.5		1.7		29.7		1.1		27.8		2.8
Total	$	40,768.4	$	3,915.9	$	3,422.0	$	172.2	$	37,346.4	$	4,088.1

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

Associations	$	13.3	$	1.2	$	-	$	-	$	13.3	$	1.2
Banking		2,032.9		68.2		429.1		23.9		1,603.8		92.1
Brokerage		170.6		10.0		25.4		1.0		145.2		11.0
Finance Non-Captive		10.6		0.7		-		-		10.6		0.7
Finance Captive		202.3		7.9		19.9		0.6		182.4		8.5
Insurance		667.3		51.4		84.2		1.8		583.1		53.2
Other Financial Institutions		60.7		1.5		24.1		0.9		36.6		2.4
Real Estate Management Services		222.2		6.5		50.4		1.2		171.8		7.7
Total	$	3,379.9	$	147.4	$	633.1	$	29.4	$	2,746.8	$	176.8

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	$	1,214.0	$	16.7			$	256.4	$	3.9
91 through 180 days		79.7		2.9				16.9		0.7
181 through 270 days		727.0		39.7				82.4		4.6
271 days to 1 year		105.2		14.8				11.1		0.1
Greater than 1 year		602.4		61.6				326.9		27.2
Total	$	2,728.3	$	135.7			$	693.7	$	36.5

13.1

Unum Group Investment Fact Sheet at June 30, 2011

Asset and Mortgage-Backed Securities Portfolio

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

Asset-Backed Securities
Credit Cards	$	182.9	$	184.3	5.7	%		0.5	%	AAA
Rate Reduction Bonds		14.4		14.6	0.5			-		AAA
Home Equity		1.0		0.6	-			-		B
Collateralized Debt Obligations		-		-	-			-		-
Total		198.3		199.5	6.2			0.5		AAA

Residential Mortgage-Backed Securities
Agency CMOs		2,439.2		2,789.1	86.1			6.8		AAA
Agency Pass-throughs		154.5		161.4	5.0			0.4		AAA
Non-agency CMOs - Prime		61.6		61.3	1.9			0.2		BAA1
Alt-A		-		-	-			-		-
Subprime		-		-	-			-		-
Collateralized Debt Obligations		-		-	-			-		-
Total		2,655.3		3,011.8	93.0			7.4		AAA

Commercial Mortgage-Backed Securities		28.4		27.9	0.8			0.1		A2

Total	$	2,882.0	$	3,239.2	100.0	%		8.0	%	AAA

13.2

Unum Group Statutory Capital and Surplus

							As of
	As of June 30, 2011						December 31, 2010
	Capital and				Capital and		Capital and
	Surplus		AVR		Surplus + AVR		Surplus + AVR
Traditional U.S. Life Insurance Companies

Provident Life and Accident	$	656.9	$	79.9	$	736.8	$	732.0

Unum Life of America		1,493.0		216.9		1,709.9		1,741.1

Paul Revere Life (1)		423.8		39.7		463.5		451.6

Colonial Life & Accident		496.3		24.9		521.2		514.2

Provident Life and Casualty		150.8		7.6		158.4		149.5

First Unum Life		258.8		9.9		268.7		248.2

Paul Revere Variable (1)		36.0		0.5		36.5		35.6

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

Special Purpose Reinsurance Vehicles

Tailwind Reinsurance Company	$	72.2	$	0.1	$	72.3	$	81.5

Northwind Reinsurance Company		1,178.7		3.4		1,182.1		1,198.6

UnumProvident International Ltd.		526.9		-		526.9		530.4

Unum Group Statutory Operating Results

	Six Months Ended June 30
	Net Gain (Loss) from						Net Realized Investment Gains (Losses)
	Operations After Tax						After Tax and Transfers to IMR						Net Income (Loss)
	2011			2010			2011			2010			2011			2010
Traditional U.S. Life Insurance Companies
Provident Life and Accident	$	88.4		$	65.5		$	(2.9	)	$	(6.7	)	$	85.5		$	58.8
Unum Life of America		115.3			136.3			(18.8	)		(7.4	)		96.5			128.9
Paul Revere Life		35.1			34.9			8.2			(3.1	)		43.3			31.8
Colonial Life & Accident		67.9			71.8			(1.8	)		4.3			66.1			76.1
Provident Life and Casualty		9.4			10.2			(0.6	)		-			8.8			10.2
First Unum Life		20.1			10.7			0.8			2.3			20.9			13.0
Paul Revere Variable		1.3			1.3			-			1.8			1.3			3.1
Total, as reported		337.5			330.7			(15.1	)		(8.8	)		322.4			321.9
Intercompany Dividends		(9.9	)		-			-			-			(9.9	)		-
Total, as adjusted	$	327.6		$	330.7		$	(15.1	)	$	(8.8	)	$	312.5		$	321.9

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	5.0		$	1.9		$	-		$	-		$	5.0		$	1.9
Northwind Reinsurance Company		51.7			32.5			(0.2	)		(0.1	)		51.5			32.4
UnumProvident International Ltd.		(8.2	)		(0.5	)		4.7			2.0			(3.5	)		1.5
Total	$	48.5		$	33.9		$	4.5		$	1.9		$	53.0		$	35.8

	Three Months Ended June 30
	Net Gain (Loss) from						Net Realized Investment Gains (Losses)
	Operations After Tax						After Tax and Transfers to IMR						Net Income (Loss)
	2011			2010			2011			2010			2011			2010
Traditional U.S. Life Insurance Companies
Provident Life and Accident	$	36.1		$	18.7		$	(0.2	)	$	(5.0	)	$	35.9		$	13.7
Unum Life of America		72.0			84.6			(10.0	)		(0.5	)		62.0			84.1
Paul Revere Life		22.9			20.0			-			(2.5	)		22.9			17.5
Colonial Life & Accident		42.2			41.2			(1.5	)		4.3			40.7			45.5
Provident Life and Casualty		5.4			8.0			(0.6	)		-			4.8			8.0
First Unum Life		8.2			2.7			0.7			2.2			8.9			4.9
Paul Revere Variable		0.6			0.7			(0.1	)		1.8			0.5			2.5
Total, as reported		187.4			175.9			(11.7	)		0.3			175.7			176.2
Intercompany Dividends		(5.0	)		-			-			-			(5.0	)		-
Total, as adjusted	$	182.4		$	175.9		$	(11.7	)	$	0.3		$	170.7		$	176.2

Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	1.8		$	2.4		$	-		$	-		$	1.8		$	2.4
Northwind Reinsurance Company		20.1			8.9			(0.2	)		(0.1	)		19.9			8.8
UnumProvident International Ltd.		(9.9	)		4.1			2.9			0.3			(7.0	)		4.4
Total	$	12.0		$	15.4		$	2.7		$	0.2		$	14.7		$	15.6

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

14.1

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

	2011			2010			2009

Reserve Balance from Prior Year End	$	6,829.4		$	6,880.9		$	6,982.6
Other Adjustments to Beginning Balance (see Schedule H)		-			(4.5	)		(5.2	)
Reserve Balance January 1 (a)		6,829.4			6,876.4			6,977.4
Paid on Prior Year Claims		(390.5	)		(374.3	)		(386.4	)
Interest Earned on Reserves		110.7			113.0			113.0
Incurred on Prior Year Claims		(122.3	)		(113.1	)		(103.0	)
Reserve Balance March 31	$	6,427.3		$	6,502.0		$	6,601.0

Reserve Balance March 31	$	6,427.3		$	6,502.0		$	6,601.0
Paid on Prior Year Claims		(339.9	)		(324.2	)		(335.6	)
Interest Earned on Reserves		104.0			108.2			108.3
Incurred on Prior Year Claims		(107.5	)		(117.5	)		(104.3	)
Reserve Balance June 30	$	6,083.9		$	6,168.5		$	6,269.4

Reserve Balance June 30				$	6,168.5		$	6,269.4
Paid on Prior Year Claims					(304.0	)		(307.6	)
Interest Earned on Reserves					103.1			103.9
Incurred on Prior Year Claims					(75.1	)		(69.2	)
Reserve Balance September 30				$	5,892.5		$	5,996.5

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

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

14.2

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

	2010			2009			2008

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

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

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

14.3

Notes to Statistical Supplement

Non-GAAP Financial Measures

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

2011 Significant Transactions and Events

Share Repurchase Program

On February 2, 2011, our board of directors authorized the repurchase of up to $1.0 billion of Unum Group’s common stock, in addition to the amount remaining to be repurchased under the May 2010 $500.0 million authorization (See 2010 Significant Transactions and Events on page 15.1 for further discussion of the 2010 authorization). The $1.0 billion share repurchase program has an expiration date of August 2012.

On February 4, 2011, we repurchased 7.1 million shares, at a cost of $200.0 million, using an accelerated repurchase agreement with a financial counterparty. As part of this transaction, we simultaneously entered into a forward contract indexed to the price of Unum Group common stock, which subjected the transaction to a future price adjustment. Under the terms of the repurchase agreement, we were to receive, or be required to pay, a price adjustment based on the volume weighted average price of Unum Group common stock during the term of the agreement, less a discount. Any price adjustment payable to us was to be settled in shares of Unum Group common stock. Any price adjustment we would have been required to pay would have been settled in either cash or common stock. The final price adjustment settlement occurred on March 18, 2011 resulting in the delivery to us of 0.6 million additional shares. In total, we repurchased 7.7 million shares pursuant to the accelerated repurchase agreement, which completed the May 2010 $500.0 million repurchase authorization and initiated the $1.0 billion repurchase program.

In addition to these repurchases, for the three and six month periods ended June 30, 2011, we repurchased an additional 5.7 million and 6.6 million shares on the open market at a cost of $146.1 million and $169.7 million, respectively. The dollar value of shares remaining under the $1.0 billion repurchase program at June 30, 2011 is $774.8 million.

Pursuant to these repurchase programs, we retired 7.7 million shares during the first quarter of 2011. All other repurchased shares have been classified as treasury stock and accounted for using the cost method.

(continued on next page)

Financing

During the first quarter of 2011, the remaining $225.1 million of our 7.625% senior notes due March 2011 matured. We also made principal payments of $44.4 million and $5.0 million on our senior secured non-recourse floating rate notes issued by Northwind Holdings, LLC (Northwind) and Tailwind Holdings, LLC (Tailwind), respectively, during the six months ended June 30, 2011. As of June 30, 2011, short-term debt consisted of $140.4 million of securities lending transactions.

Accounting Developments

Accounting Standards Codification (ASC) 944 “Financial Services - Insurance”

In October 2010, the Financial Accounting Standards Board (FASB) issued an update which is intended to address the diversity in practice regarding the interpretation of which costs relating to the acquisition of new or renewal insurance contracts qualify as deferred acquisition costs. The amendments in the update modify the existing guidance and require that only incremental direct costs associated with the successful acquisition of a new or renewal insurance contract can be capitalized. All other costs are to be expensed as incurred. The amendments in the update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011 and permit retrospective application.

Our expected retrospective adoption of this update will result in a reduction in our deferred acquisition cost asset as well as a decrease in the amortization associated with those previously deferred costs. There will also be a reduction in the level of costs we defer subsequent to adoption.

We are evaluating the full effects of implementing this update, but we currently estimate that our retrospective adoption will result in a cumulative effect adjustment to the opening balance of retained earnings of between $400.0 million and $600.0 million in the year of adoption. We currently estimate the adoption of this update will result in an immaterial decrease in net income in 2012 and in the years preceding to which the retrospective adoption will be applied.

2010 Significant Transactions and Events

Share Repurchase Program

In May 2010, our board of directors authorized the repurchase of up to $500.0 million of Unum Group’s common stock. During 2010, we repurchased 16.4 million shares, at a cost of $356.0 million under this share repurchase program.

(continued on next page)

15.1

Financing

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

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

Tax Law Change

In March 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 were signed into law. Among other things, the new legislation reduces the tax benefits available to an employer that receives a postretirement prescription drug coverage subsidy from the federal government under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Under the new legislation, to the extent our future postretirement prescription drug coverage expenses are reimbursed under the subsidy program, the expenses covered by the subsidy will no longer be tax deductible after 2012. Employers that receive the subsidy must recognize the deferred tax effects relating to the future postretirement prescription drug coverage in the period the legislation was enacted. Our income tax expense for 2010 includes a non-cash tax charge of $10.2 million which was recorded in the first quarter of 2010 to reflect the impact of the tax law change.

2009 Significant Transactions and Events

Financing

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

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

(continued on next page)

15.2

Accounting Developments

ASC 105 “Generally Accepted Accounting Principles”

In June 2009, the 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-temporary impairment 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).

2008 Significant Transactions and Events

Stock Repurchase Agreement

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

Financing

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

15.3

Attached files

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Unum Group Reports