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

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8-K - 8-K - Unum Group	unm033120188-kcover.htm
EX-99.1 - EXHIBIT 99.1 - Unum Group	unm03312018exhibit991.htm

Unum Group

Statistical Supplement First Quarter 2018

TABLE OF CONTENTS

(in millions of dollars, except share data and where noted)

Interim Results are Unaudited



		Page
	Financial Highlights	1
	Capital Metrics	2
	Ratings	3
	Consolidated Statements of Income	4
	Sales Data by Segment	5
	Consolidated Balance Sheets	6
	Financial Results by Segment	7
	Quarterly Historical Financial Results by Segment	8
	Financial Results and Selected Statistics by Segment
	Unum US	9
	Unum UK	10
	Colonial Life	11
	Closed Block	12
	Corporate	13
	Reserves	14
	Investments	15
	Appendix to Statistical Supplement	16

See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.1 for a reconciliation of our non-GAAP financial measures.

N.M. = not a meaningful percentage

Unum Group Financial Highlights



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Consolidated U.S. GAAP Results¹

Premium Income	$	2,250.0		$	2,142.9		$	8,597.1		$	8,357.7

Adjusted Operating Revenue	$	2,901.8		$	2,795.5		$	11,246.5		$	11,022.3
Net Realized Investment Gain (Loss)	(2.2		)	11.0			40.3			24.2

Revenue	$	2,899.6		$	2,806.5		$	11,286.8		$	11,046.5

Net Income	$	273.5		$	229.9		$	994.2		$	931.4
Net Income Per Common Share:
Basic	$	1.23		$	1.00		$	4.39		$	3.96
Assuming Dilution	$	1.23		$	1.00		$	4.37		$	3.95

Assets	$	63,012.3		$	62,524.7		$	64,013.1		$	61,941.5
Stockholders' Equity	$	9,499.5		$	9,107.4		$	9,574.9		$	8,698.0

Adjusted Operating Return on Equity
Unum US	17.9		%	15.4		%	15.9		%	15.0		%
Unum UK	14.4		%	15.8		%	15.2		%	18.6		%
Colonial Life	17.6		%	17.4		%	16.2		%	17.4		%
Core Operating Segments	17.5		%	15.8		%	15.9		%	15.9		%
Consolidated	12.5		%	11.4		%	11.6		%	11.2		%



Traditional U.S. Life Insurance Companies' Statutory Results²
Net Gain from Operations, After Tax	$	242.0		$	180.1	$	812.4		$	884.6
Net Realized Investment Gain (Loss), After Tax	(1.5		)	0.4		(5.0		)	(29.5		)

Net Income	$	240.5		$	180.5	$	807.4		$	855.1

Capital and Surplus	$	3,427.3		$	3,548.3	$	3,448.3		$	3,626.9

Weighted Average Risk-based Capital Ratio	~ 380%			>390%		~ 390%			~ 400%

¹Generally Accepted Accounting Principles

² Our traditional U.S. life insurance companies are Provident Life and Accident Insurance Company, Unum Life Insurance Company of America, The Paul Revere Life Insurance Company, Colonial Life & Accident Insurance Company, Provident Life and Casualty Insurance Company, First Unum Life Insurance Company, Unum Insurance Company and Starmount Life Insurance Company.

Unum Group Capital Metrics



	3/31/2018						3/31/2017						12/31/2017						12/31/2016
	(in millions)			per share			(in millions)			per share			(in millions)			per share			(in millions)			per share
Total Stockholders' Equity (Book Value)	$	9,499.5		$	42.95		$	9,107.4		$	39.91		$	9,574.9		$	43.02		$	8,968.0		$	39.02
Excluding:
Net Unrealized Gain on Securities	356.1			1.61			483.0			2.12			607.8			2.73			440.6			1.92
Net Gain on Hedges	273.5			1.24			316.8			1.38			282.3			1.27			327.5			1.42
Subtotal	8,869.9			40.10			8,307.6			36.41			8,684.8			39.02			8,199.9			35.68
Excluding:
Foreign Currency Translation Adjustment	(207.0		)	(0.94		)	(336.9		)	(1.47		)	(254.5		)	(1.15		)	(354.0		)	(1.54		)
Subtotal	9,076.9			41.04			8,644.5			37.88			8,939.3			40.17			8,553.9			37.22
Excluding:
Unrecognized Pension and Postretirement Benefit Costs	(505.0		)	(2.28		)	(462.5		)	(2.03		)	(508.1		)	(2.28		)	(465.1		)	(2.02		)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)	$	9,581.9		$	43.32		$	9,107.0		$	39.91		$	9,447.4		$	42.45		$	9,019.0		$	39.24

Dividends Paid	$	52.4		$	0.23		$	46.5		$	0.20		$	196.0		$	0.86		$	182.6		$	0.77



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Shares Repurchased (millions)	1.9			2.1			8.2			11.9
Cost of Shares Repurchased (millions)⁽¹⁾	$	100.2		$	100.0		$	400.4		$	403.3
Price (UNM closing price on last trading day of period)	$	47.61		$	46.89		$	54.89		$	43.93

Leverage Ratio	25.7		%	26.9		%	26.1		%	27.2		%

Holding Company Cash and Marketable Securities	$	887		$	648		$	864		$	594

⁽¹⁾Includes commissions of $0.2 million for the three months ended March 31, 2018, a de minimis amount for the three months ended March 31, 2017, and $0.3 million and $0.2 million for the years ended December 31, 2017 and 2016, respectively.

Unum Group Ratings



	AM Best	Fitch	Moody's	S&P
Outlook	Stable	Stable	Stable	Stable

Issuer Credit Ratings	bbb	BBB	Baa2	BBB

Financial Strength Ratings
Provident Life and Accident Insurance Company	A	A	A2	A
Unum Life Insurance Company of America	A	A	A2	A
Colonial Life & Accident Insurance Company	A	A	A2	A
The Paul Revere Life Insurance Company	A	A	A2	A
Starmount Life Insurance Company	A-	NR	NR	NR
Unum Insurance Company	A-	A	A2	NR
Unum Limited	NR	NR	NR	A-

NR = not rated

Unum Group Consolidated Statements of Income



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Revenue
Premium Income	$	2,250.0		$	2,142.9		$	8,597.1		$	8,357.7
Net Investment Income	602.3			602.4			2,451.7			2,459.0
Net Realized Investment Gain (Loss)	(2.2		)	11.0			40.3			24.2
Other Income	49.5			50.2			197.7			205.6
Total Revenue	2,899.6			2,806.5			11,286.8			11,046.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,807.9			1,749.0			7,055.7			6,941.8
Commissions	282.3			270.2			1,060.8			1,026.7
Interest and Debt Expense - Non-recourse Debt	1.7			1.7			6.7			6.9
Interest and Debt Expense - All Other Debt	38.5			38.1			153.2			159.1
Deferral of Acquisition Costs	(169.3		)	(162.1		)	(628.0		)	(592.4		)
Amortization of Deferred Acquisition Costs	151.5			141.5			527.1			493.0
Other Expenses	445.9			437.8			1,707.3			1,663.7
Total Benefits and Expenses	2,558.5			2,476.2			9,882.8			9,698.8

Income Before Income Tax	341.1			330.3			1,404.0			1,347.7
Income Tax	67.6			100.4			409.8			416.3

Net Income	$	273.5		$	229.9		$	994.2		$	931.4

Weighted Average Shares Outstanding
Basic	221.9			229.4			226.5			235.4
Assuming Dilution	222.6			230.4			227.3			236.0

Actual Number of Shares Outstanding	221.2			228.2			222.5			229.8

Unum Group Sales Data for Unum US Segment



	Three Months Ended						Year Ended
	3/31/2018		3/31/2017		% Change		12/31/2017		12/31/2016
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability	$	30.1	$	36.0	(16.4	)%	$	240.8	$	217.8
Group Short-term Disability	16.3		16.9		(3.6	)	162.5		114.6
Group Life and AD&D	44.6		37.2		19.9		310.5		270.1
Subtotal	91.0		90.1		1.0		713.8		602.5
Supplemental and Voluntary
Individual Disability	17.9		16.2		10.5		67.9		65.1
Voluntary Benefits	153.5		147.3		4.2		292.5		261.7
Dental and Vision	12.2		9.9		23.2		54.8		14.5
Subtotal	183.6		173.4		5.9		415.2		341.3
Total Sales	$	274.6	$	263.5	4.2		$	1,129.0	$	943.8

Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees)	$	54.9	$	56.3	(2.5	)%	$	416.9	$	378.1
Large Case Market	36.1		33.8		6.8		296.9		224.4
Subtotal	91.0		90.1		1.0		713.8		602.5
Supplemental and Voluntary	183.6		173.4		5.9		415.2		341.3
Total Sales	$	274.6	$	263.5	4.2		$	1,129.0	$	943.8

Unum Group Sales Data for Unum UK Segment



	Three Months Ended						Year Ended
(in millions of dollars)	3/31/2018		3/31/2017		% Change		12/31/2017		12/31/2016
Sales by Product
Group Long-term Disability	$	7.8	$	13.5	(42.2	)%	$	47.1	$	50.2
Group Life	4.5		3.9		15.4		24.4		23.8
Supplemental	4.8		2.3		108.7		14.4		10.5
Total Sales	$	17.1	$	19.7	(13.2	)	$	85.9	$	84.5

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	$	7.6	$	6.4	18.8	%	$	30.4	$	42.0
Large Case Market	4.7		11.0		(57.3	)	41.1		32.0
Subtotal	12.3		17.4		(29.3	)	71.5		74.0
Supplemental	4.8		2.3		108.7		14.4		10.5
Total Sales	$	17.1	$	19.7	(13.2	)	$	85.9	$	84.5

(in millions of pounds)
Sales by Product
Group Long-term Disability	£	5.6	£	10.9	(48.6	)%	£	36.6	£	37.2
Group Life	3.3		3.1		6.5		18.9		17.8
Supplemental	3.4		1.9		78.9		11.3		7.7
Total Sales	£	12.3	£	15.9	(22.6	)	£	66.8	£	62.7

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	£	5.4	£	5.2	3.8	%	£	23.6	£	31.2
Large Case Market	3.5		8.8		(60.2	)	31.9		23.8
Subtotal	8.9		14.0		(36.4	)	55.5		55.0
Supplemental	3.4		1.9		78.9		11.3		7.7
Total Sales	£	12.3	£	15.9	(22.6	)	£	66.8	£	62.7

5. 1

Unum Group Sales Data for Colonial Life Segment



	Three Months Ended						Year Ended
	3/31/2018		3/31/2017		% Change		12/31/2017		12/31/2016
Sales by Product
Accident, Sickness, and Disability	$	66.4	$	61.5	8.0	%	$	323.2	$	310.6
Life	21.3		20.9		1.9		107.7		94.0
Cancer and Critical Illness	16.0		14.0		14.3		88.8		79.0
Total Sales	$	103.7	$	96.4	7.6		$	519.7	$	483.6

Sales by Market Sector
Commercial
Core Market (< 1,000 employees)	$	67.9	$	63.0	7.8	%	$	313.5	$	291.3
Large Case Market	15.7		15.4		1.9		90.9		77.4
Subtotal	83.6		78.4		6.6		404.4		368.7
Public Sector	20.1		18.0		11.7		115.3		114.9
Total Sales	$	103.7	$	96.4	7.6		$	519.7	$	483.6

Certain prior year and prior period amounts in the table above were reclassified to conform to current year presentation.

5. 2

Unum Group Consolidated Balance Sheets



	March 31			December 31
	2018			2017
Assets
Investments
Fixed Maturity Securities	$	44,500.1		$	45,457.8
Mortgage Loans	2,200.8			2,213.2
Policy Loans	3,573.3			3,571.1
Other Long-term Investments	706.5			646.8
Short-term Investments	712.6			1,155.1
Total Investments	51,693.3			53,044.0

Other Assets
Cash and Bank Deposits	308.9			77.4
Accounts and Premiums Receivable	1,736.7			1,665.7
Reinsurance Recoverable	4,815.5			4,879.2
Accrued Investment Income	745.8			690.1
Deferred Acquisition Costs	2,213.4			2,184.6
Goodwill	348.9			338.6
Property and Equipment	508.4			504.8
Other Assets	641.4			628.7
Total Assets	$	63,012.3		$	64,013.1

Liabilities
Policy and Contract Benefits	$	1,623.1		$	1,605.2
Reserves for Future Policy and Contract Benefits	44,668.5			45,601.6
Unearned Premiums	432.8			373.1
Other Policyholders’ Funds	1,635.6			1,595.0
Income Tax Payable	61.3			2.9
Deferred Income Tax	128.9			199.0
Short-term Debt	200.0			199.9
Long-term Debt - Non-recourse	181.3			196.0
Long-term Debt - All Other	2,540.6			2,542.4
Payables for Collateral on Investments	382.2			396.2
Other Liabilities	1,658.5			1,726.9
Total Liabilities	53,512.8			54,438.2

Stockholders’ Equity
Common Stock	30.5			30.5
Additional Paid-in Capital	2,302.4			2,303.3
Accumulated Other Comprehensive Income (Loss)	(82.4		)	127.5
Retained Earnings	9,777.8			9,542.2
Treasury Stock	(2,528.8		)	(2,428.6		)
Total Stockholders’ Equity	9,499.5			9,574.9
Total Liabilities and Stockholders’ Equity	$	63,012.3		$	64,013.1

Unum Group Deferred Acquisition Costs by Segment



	Unum US			Unum UK			Colonial Life			Consolidated
Balances at December 31, 2016	$	1,176.5		$	21.4		$	896.3		$	2,094.2
Capitalization	325.5			7.0			295.5			628.0
Amortization	(293.6		)	(9.1		)	(224.4		)	(527.1		)
Adjustment Related to Unrealized Investment Gains and Losses	(3.0		)	—			(9.5		)	(12.5		)
Foreign Currency	—			2.0			—			2.0
Balances at December 31, 2017	1,205.4			21.3			957.9			2,184.6
Capitalization	89.5			1.5			78.3			169.3
Amortization	(89.2		)	(2.1		)	(60.2		)	(151.5		)
Adjustment Related to Unrealized Investment Gains and Losses	2.4			—			7.8			10.2
Foreign Currency	—			0.8			—			0.8
Balances at March 31, 2018	$	1,208.1		$	21.5		$	983.8		$	2,213.4

6. 1

Unum Group Balance Sheets by Segment - March 31, 2018



	Unum US
	Group Disability		Group Life and Accidental Death & Dismemberment			Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Consolidated
Assets
Investments	$	8,465.8	$	2,305.3		$	4,703.4	$	15,474.5	$	2,789.8	$	2,992.2	$	28,790.1	$	1,646.7		$	51,693.3
Deferred Acquisition Costs	97.9		78.8			1,031.4		1,208.1		21.5		983.8		—		—			2,213.4
Goodwill	8.8		—			271.1		279.9		41.3		27.7		—		—			348.9
All Other	349.6		235.0			489.2		1,073.8		645.0		289.2		5,813.7		935.0			8,756.7
Total Assets	$	8,922.1	$	2,619.1		$	6,495.1	$	18,036.3	$	3,497.6	$	4,292.9	$	34,603.8	$	2,581.7		$	63,012.3

Liabilities
Reserves and Policyholder Benefits	$	7,225.9	$	1,752.2		$	4,010.3	$	12,988.4	$	2,707.6	$	2,498.7	$	30,165.3	$	—		$	48,360.0
Debt	—		—			—		—		—		—		181.3		2,740.6			2,921.9
All Other	133.4		26.1			345.3		504.8		79.6		200.7		96.1		1,349.7			2,230.9
Total Liabilities	7,359.3		1,778.3			4,355.6		13,493.2		2,787.2		2,699.4		30,442.7		4,090.3			53,512.8

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,551.5		852.0			2,052.0		4,455.5		663.6		1,520.7		3,679.2		(1,449.1		)	8,869.9
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges	11.3		(11.2		)	87.5		87.6		46.8		72.8		481.9		(59.5		)	629.6
Total Allocated Stockholders' Equity	1,562.8		840.8			2,139.5		4,543.1		710.4		1,593.5		4,161.1		(1,508.6		)	9,499.5

Total Liabilities and Allocated Stockholders' Equity	$	8,922.1	$	2,619.1		$	6,495.1	$	18,036.3	$	3,497.6	$	4,292.9	$	34,603.8	$	2,581.7		$	63,012.3

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 our target capital levels for regulatory and rating agency purposes. We modify this formula periodically to recognize changes in the views of capital requirements.

6. 2

Unum Group Balance Sheets by Segment - December 31, 2017



	Unum US
	Group Disability		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Closed Block		Corporate			Consolidated
Assets
Investments	$	8,630.4	$	2,315.2	$	4,645.5	$	15,591.1	$	3,075.6	$	2,939.9	$	29,027.5	$	2,409.9		$	53,044.0
Deferred Acquisition Costs	96.7		77.7		1,031.0		1,205.4		21.3		957.9		—		—			2,184.6
Goodwill	—		—		271.1		271.1		39.8		27.7		—		—			338.6
All Other	364.2		174.6		502.7		1,041.5		291.4		258.6		6,023.7		830.7			8,445.9
Total Assets	$	9,091.3	$	2,567.5	$	6,450.3	$	18,109.1	$	3,428.1	$	4,184.1	$	35,051.2	$	3,240.6		$	64,013.1

Liabilities
Reserves and Policyholder Benefits	$	7,426.5	$	1,742.2	$	4,035.6	$	13,204.3	$	2,627.7	$	2,478.3	$	30,864.6	$	—		$	49,174.9
Debt	—		—		—		—		—		—		196.0		2,742.3			2,938.3
All Other	146.1		29.7		366.9		542.7		86.9		207.7		69.2		1,418.5			2,325.0
Total Liabilities	7,572.6		1,771.9		4,402.5		13,747.0		2,714.6		2,686.0		31,129.8		4,160.8			54,438.2

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,501.1		775.3		1,915.9		4,192.3		643.2		1,389.2		3,406.3		(946.2		)	8,684.8
Net Unrealized Gain on Securities and Net Gain on Hedges	17.6		20.3		131.9		169.8		70.3		108.9		515.1		26.0			890.1
Total Allocated Stockholders' Equity	1,518.7		795.6		2,047.8		4,362.1		713.5		1,498.1		3,921.4		(920.2		)	9,574.9

Total Liabilities and Allocated Stockholders' Equity	$	9,091.3	$	2,567.5	$	6,450.3	$	18,109.1	$	3,428.1	$	4,184.1	$	35,051.2	$	3,240.6		$	64,013.1

6. 3

Unum Group Financial Results by Segment

We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items as specified in the following pages. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income.



	Three Months Ended						Year Ended
	3/31/2018		3/31/2017		% Change		12/31/2017		12/31/2016		% Change
Premium Income
Unum US	$	1,438.8	$	1,360.4	5.8	%	$	5,443.5	$	5,240.9	3.9	%
Unum UK	139.6		121.3		15.1		513.0		529.3		(3.1	)
Colonial Life	398.3		374.3		6.4		1,511.4		1,417.1		6.7
Closed Block	273.3		286.9		(4.7	)	1,129.2		1,170.4		(3.5	)
	2,250.0		2,142.9		5.0		8,597.1		8,357.7		2.9
Net Investment Income
Unum US	194.2		202.5		(4.1	)	811.2		828.7		(2.1	)
Unum UK	27.6		26.6		3.8		120.2		118.1		1.8
Colonial Life	37.3		35.1		6.3		144.9		141.5		2.4
Closed Block	337.7		335.3		0.7		1,354.0		1,352.2		0.1
Corporate	5.5		2.9		89.7		21.4		18.5		15.7
	602.3		602.4		—		2,451.7		2,459.0		(0.3	)
Other Income
Unum US	29.0		28.7		1.0		113.2		113.3		(0.1	)
Unum UK	—		—		—		0.7		0.2		N.M.
Colonial Life	0.3		0.3		—		1.1		1.2		(8.3	)
Closed Block	19.0		20.8		(8.7	)	79.8		86.0		(7.2	)
Corporate	1.2		0.4		200.0		2.9		4.9		(40.8	)
	49.5		50.2		(1.4	)	197.7		205.6		(3.8	)
Total Adjusted Operating Revenue
Unum US	1,662.0		1,591.6		4.4		6,367.9		6,182.9		3.0
Unum UK	167.2		147.9		13.0		633.9		647.6		(2.1	)
Colonial Life	435.9		409.7		6.4		1,657.4		1,559.8		6.3
Closed Block	630.0		643.0		(2.0	)	2,563.0		2,608.6		(1.7	)
Corporate	6.7		3.3		103.0		24.3		23.4		3.8
	$	2,901.8	$	2,795.5	3.8		$	11,246.5	$	11,022.3	2.0

Unum Group Financial Results by Segment - Continued



	Three Months Ended								Year Ended
	3/31/2018			3/31/2017			% Change		12/31/2017			12/31/2016			% Change
Benefits and Expenses
Unum US	$	1,418.1		$	1,352.5		4.9	%	$	5,385.0		$	5,268.7		2.2	%
Unum UK	137.4			121.3			13.3		522.2			519.0			0.6
Colonial Life	354.9			327.3			8.4		1,344.8			1,245.6			8.0
Closed Block	601.1			611.4			(1.7	)	2,439.1			2,479.1			(1.6	)
Corporate	47.0			63.7			(26.2	)	191.7			186.4			2.8
	2,558.5			2,476.2			3.3		9,882.8			9,698.8			1.9
Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss)
Unum US	243.9			239.1			2.0		982.9			914.2			7.5
Unum UK	29.8			26.6			12.0		111.7			128.6			(13.1	)
Colonial Life	81.0			82.4			(1.7	)	312.6			314.2			(0.5	)
Closed Block	28.9			31.6			(8.5	)	123.9			129.5			(4.3	)
Corporate	(40.3		)	(60.4		)	33.3		(167.4		)	(163.0		)	2.7
	343.3			319.3			7.5		1,363.7			1,323.5			3.0
Income Tax	68.2			96.6			(29.4	)	394.8			407.9			(3.2	)

Income Before Net Realized Investment Gain (Loss)	275.1			222.7			23.5		968.9			915.6			5.8

Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $(0.6); $3.8; $15.0; $8.4)	(1.6		)	7.2			(122.2	)	25.3			15.8			60.1
Net Income	$	273.5		$	229.9		19.0		$	994.2		$	931.4		6.7

7. 1

Unum Group Quarterly Historical Financial Results by Segment



	3/31/18		12/31/17		9/30/17		6/30/17		3/31/17		12/31/16		9/30/16		6/30/16		3/31/16
Premium Income
Unum US	$	1,438.8	$	1,364.5	$	1,360.9	$	1,357.7	$	1,360.4	$	1,325.2	$	1,315.0	$	1,299.4	$	1,301.3
Unum UK	139.6		133.4		131.5		126.8		121.3		121.9		127.3		140.8		139.3
Colonial Life	398.3		382.1		378.7		376.3		374.3		360.4		354.1		351.4		351.2
Closed Block	273.3		278.4		282.5		281.4		286.9		291.7		293.0		290.0		295.7
	2,250.0		2,158.4		2,153.6		2,142.2		2,142.9		2,099.2		2,089.4		2,081.6		2,087.5
Net Investment Income
Unum US	194.2		202.1		201.0		205.6		202.5		206.3		207.3		207.7		207.4
Unum UK	27.6		31.9		28.5		33.2		26.6		28.8		28.5		34.0		26.8
Colonial Life	37.3		37.1		36.0		36.7		35.1		35.8		36.1		35.6		34.0
Closed Block	337.7		341.5		337.2		340.0		335.3		343.6		334.1		341.1		333.4
Corporate	5.5		7.2		6.3		5.0		2.9		3.4		5.4		4.9		4.8
	602.3		619.8		609.0		620.5		602.4		617.9		611.4		623.3		606.4
Other Income
Unum US	29.0		27.9		26.5		30.1		28.7		27.7		28.7		27.9		29.0
Unum UK	—		0.1		0.6		—		—		—		—		0.2		—
Colonial Life	0.3		0.3		0.3		0.2		0.3		0.2		0.4		0.3		0.3
Closed Block	19.0		19.9		18.9		20.2		20.8		20.7		21.5		21.4		22.4
Corporate	1.2		1.4		0.4		0.7		0.4		2.4		0.9		1.3		0.3
	49.5		49.6		46.7		51.2		50.2		51.0		51.5		51.1		52.0
Total Adjusted Operating Revenue
Unum US	1,662.0		1,594.5		1,588.4		1,593.4		1,591.6		1,559.2		1,551.0		1,535.0		1,537.7
Unum UK	167.2		165.4		160.6		160.0		147.9		150.7		155.8		175.0		166.1
Colonial Life	435.9		419.5		415.0		413.2		409.7		396.4		390.6		387.3		385.5
Closed Block	630.0		639.8		638.6		641.6		643.0		656.0		648.6		652.5		651.5
Corporate	6.7		8.6		6.7		5.7		3.3		5.8		6.3		6.2		5.1
	$	2,901.8	$	2,827.8	$	2,809.3	$	2,813.9	$	2,795.5	$	2,768.1	$	2,752.3	$	2,756.0	$	2,745.9

Unum Group Quarterly Historical Financial Results by Segment - Continued



	3/31/18			12/31/17			9/30/17			6/30/17			3/31/17			12/31/16			9/30/16			6/30/16			3/31/16
Benefits and Expenses
Unum US	$	1,418.1		$	1,356.9		$	1,330.0		$	1,345.6		$	1,352.5		$	1,319.1		$	1,320.0		$	1,307.8		$	1,321.8
Unum UK	137.4			135.7			134.1			131.1			121.3			120.8			127.6			138.1			132.5
Colonial Life	354.9			352.8			333.3			331.4			327.3			316.5			311.6			309.4			308.1
Closed Block	601.1			606.7			612.0			609.0			611.4			621.4			620.0			619.9			617.8
Corporate	47.0			41.8			42.9			43.3			63.7			47.5			52.0			45.9			41.0
	2,558.5			2,493.9			2,452.3			2,460.4			2,476.2			2,425.3			2,431.2			2,421.1			2,421.2
Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss)
Unum US	243.9			237.6			258.4			247.8			239.1			240.1			231.0			227.2			215.9
Unum UK	29.8			29.7			26.5			28.9			26.6			29.9			28.2			36.9			33.6
Colonial Life	81.0			66.7			81.7			81.8			82.4			79.9			79.0			77.9			77.4
Closed Block	28.9			33.1			26.6			32.6			31.6			34.6			28.6			32.6			33.7
Corporate	(40.3		)	(33.2		)	(36.2		)	(37.6		)	(60.4		)	(41.7		)	(45.7		)	(39.7		)	(35.9		)
	343.3			333.9			357.0			353.5			319.3			342.8			321.1			334.9			324.7
Income Tax	68.2			74.2			110.9			113.1			96.6			113.1			92.4			101.9			100.5

Income Before Net Realized Investment Gain (Loss)	275.1			259.7			246.1			240.4			222.7			229.7			228.7			233.0			224.2

Net Realized Investment Gain (Loss)	(2.2		)	11.4			9.8			8.1			11.0			28.4			11.0			5.3			(20.5		)
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)	(0.6		)	4.2			3.6			3.4			3.8			10.1			3.7			1.5			(6.9		)
Net Income	$	273.5		$	266.9		$	252.3		$	245.1		$	229.9		$	248.0		$	236.0		$	236.8		$	210.6

Net Income Per Common Share - Assuming Dilution	$	1.23		$	1.19		$	1.12		$	1.07		$	1.00		$	1.07		$	1.01		$	1.00		$	0.88

8. 1

Unum Group Financial Results for Unum US Segment



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income	$	1,438.8		$	1,360.4		$	5,443.5		$	5,240.9
Net Investment Income	194.2			202.5			811.2			828.7
Other Income	29.0			28.7			113.2			113.3
Total	1,662.0			1,591.6			6,367.9			6,182.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	960.9			923.4			3,693.4			3,624.3
Commissions	161.4			153.2			590.8			580.4
Deferral of Acquisition Costs	(89.5		)	(87.3		)	(325.5		)	(314.1		)
Amortization of Deferred Acquisition Costs	89.2			83.5			293.6			275.2
Other Expenses	296.1			279.7			1,132.7			1,102.9
Total	1,418.1			1,352.5			5,385.0			5,268.7

Income Before Income Tax and Net Realized Investment Gains and Losses	243.9			239.1			982.9			914.2
Unclaimed Death Benefits (UDB) Reserve Increase	—			—			26.6			—
Adjusted Operating Income	$	243.9		$	239.1		$	1,009.5		$	914.2

Operating Ratios (% of Premium Income):
Benefit Ratio	66.8		%	67.9		%	67.8		%	69.2		%
Benefit Ratio Excluding UDB Reserve Increase							67.4		%
Other Expense Ratio	20.6		%	20.6		%	20.8		%	21.0		%
Income Ratio	17.0		%	17.6		%	18.1		%	17.4		%
Adjusted Operating Income Ratio							18.5		%

Unum Group Financial Results for Unum US Group Disability



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Long-term Disability	$	441.2		$	434.4		$	1,749.6		$	1,726.6
Group Short-term Disability	176.3			157.9			639.8			626.1
Total Premium Income	617.5			592.3			2,389.4			2,352.7
Net Investment Income	108.2			115.5			460.5			479.5
Other Income	26.3			24.0			98.3			91.1
Total	752.0			731.8			2,948.2			2,923.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	466.9			453.8			1,828.5			1,863.8
Commissions	48.9			46.4			181.9			178.2
Deferral of Acquisition Costs	(12.3		)	(12.0		)	(46.9		)	(46.4		)
Amortization of Deferred Acquisition Costs	11.2			10.0			39.9			35.9
Other Expenses	154.3			144.9			587.0			572.1
Total	669.0			643.1			2,590.4			2,603.6

Adjusted Operating Income	$	83.0		$	88.7		$	357.8		$	319.7

Operating Ratios (% of Premium Income):
Benefit Ratio	75.6		%	76.6		%	76.5		%	79.2		%
Other Expense Ratio	25.0		%	24.5		%	24.6		%	24.3		%
Adjusted Operating Income Ratio	13.4		%	15.0		%	15.0		%	13.6		%

Persistency:
Group Long-term Disability	90.8		%	88.1		%	89.9		%	91.0		%
Group Short-term Disability	86.6		%	85.2		%	86.6		%	87.7		%

9. 1

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



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Life	$	399.2		$	367.8		$	1,467.5		$	1,410.0
Accidental Death & Dismemberment	38.7			36.6			147.5			140.3
Total Premium Income	437.9			404.4			1,615.0			1,550.3
Net Investment Income	26.8			27.6			109.9			113.4
Other Income	1.1			1.0			4.8			4.5
Total	465.8			433.0			1,729.7			1,668.2

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	309.8			290.7			1,169.8			1,112.6
Commissions	36.7			32.6			131.3			126.8
Deferral of Acquisition Costs	(10.2		)	(9.3		)	(36.2		)	(35.7		)
Amortization of Deferred Acquisition Costs	9.1			8.0			31.9			29.2
Other Expenses	55.8			55.0			217.4			213.5
Total	401.2			377.0			1,514.2			1,446.4

Income Before Income Tax and Net Realized Investment Gains and Losses	64.6			56.0			215.5			221.8
UDB Reserve Increase	—			—			18.5			—
Adjusted Operating Income	$	64.6		$	56.0		$	234.0		$	221.8

Operating Ratios (% of Premium Income):
Benefit Ratio	70.7		%	71.9		%	72.4		%	71.8		%
Benefit Ratio Excluding UDB Reserve Increase							71.3		%
Other Expense Ratio	12.7		%	13.6		%	13.5		%	13.8		%
Income Ratio	14.8		%	13.8		%	13.3		%	14.3		%
Adjusted Operating Income Ratio							14.5		%

Persistency:
Group Life	89.3		%	87.4		%	88.0		%	90.7		%
Accidental Death & Dismemberment	86.2		%	87.1		%	87.2		%	90.3		%

9. 2

Unum Group Financial Results for Unum US Supplemental and Voluntary



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Individual Disability	$	104.9		$	107.0		$	420.2		$	480.3
Voluntary Benefits	229.8			215.2			849.4			796.5
Dental and Vision	48.7			41.5			169.5			61.1
Total Premium Income	383.4			363.7			1,439.1			1,337.9
Net Investment Income	59.2			59.4			240.8			235.8
Other Income	1.6			3.7			10.1			17.7
Total	444.2			426.8			1,690.0			1,591.4

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	184.2			178.9			695.1			647.9
Commissions	75.8			74.2			277.6			275.4
Deferral of Acquisition Costs	(67.0		)	(66.0		)	(242.4		)	(232.0		)
Amortization of Deferred Acquisition Costs	68.9			65.5			221.8			210.1
Other Expenses	86.0			79.8			328.3			317.3
Total	347.9			332.4			1,280.4			1,218.7

Income Before Income Tax and Net Realized Investment Gains and Losses	96.3			94.4			409.6			372.7
UDB Reserve Increase	—			—			8.1			—
Adjusted Operating Income	$	96.3		$	94.4		$	417.7		$	372.7

Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability	51.0		%	54.6		%	47.2		%	52.9		%
Voluntary Benefits	42.3		%	42.2		%	44.6		%	44.3		%
Voluntary Benefits Excluding UDB Reserve Increase							43.6		%
Dental and Vision	68.6		%	71.6		%	69.6		%	66.6		%
Other Expense Ratio	22.4		%	21.9		%	22.8		%	23.7		%
Income Ratio	25.1		%	26.0		%	28.5		%	27.9		%
Adjusted Operating Income Ratio							29.0		%

Persistency:
Individual Disability	90.7		%	91.1		%	91.0		%	91.1		%
Voluntary Benefits	76.9		%	75.9		%	77.5		%	76.9		%
Dental and Vision	85.0		%	83.4		%	85.4		%	84.6		%

9. 3

Unum Group Financial Results for Unum UK Segment



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Long-term Disability	$	90.8		$	80.8		$	340.3		$	355.2
Group Life	28.6			24.8			103.1			105.7
Supplemental	20.2			15.7			69.6			68.4
Total Premium Income	139.6			121.3			513.0			529.3
Net Investment Income	27.6			26.6			120.2			118.1
Other Income	—			—			0.7			0.2
Total	167.2			147.9			633.9			647.6

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	100.3			86.7			381.9			367.4
Commissions	9.4			8.8			35.5			38.9
Deferral of Acquisition Costs	(1.5		)	(1.8		)	(7.0		)	(8.2		)
Amortization of Deferred Acquisition Costs	2.1			2.2			9.1			9.7
Other Expenses	27.1			25.4			102.7			111.2
Total	137.4			121.3			522.2			519.0

Adjusted Operating Income	$	29.8		$	26.6		$	111.7		$	128.6

Unum Group Financial Results for Unum UK Segment - Continued



	Three Months Ended						Year Ended
(in millions of pounds, except exchange rate)	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Long-term Disability	£	65.2		£	65.2		£	264.0		£	262.0
Group Life	20.6			20.0			80.0			78.0
Supplemental	14.5			12.7			53.9			50.5
Total Premium Income	100.3			97.9			397.9			390.5
Net Investment Income	19.9			21.4			93.3			87.3
Other Income	—			—			0.5			0.1
Total	120.2			119.3			491.7			477.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	72.1			69.9			296.2			270.9
Commissions	6.8			7.1			27.6			28.9
Deferral of Acquisition Costs	(1.1		)	(1.4		)	(5.4		)	(6.1		)
Amortization of Deferred Acquisition Costs	1.5			1.7			7.0			7.2
Other Expenses	19.5			20.6			79.7			82.2
Total	98.8			97.9			405.1			383.1

Adjusted Operating Income	£	21.4		£	21.4		£	86.6		£	94.8

Weighted Average Pound/Dollar Exchange Rate	1.393			1.243			1.290			1.357

Operating Ratios (% of Premium Income):
Benefit Ratio	71.9		%	71.4		%	74.4		%	69.4		%
Other Expense Ratio	19.4		%	21.0		%	20.0		%	21.0		%
Adjusted Operating Income Ratio	21.3		%	21.9		%	21.8		%	24.3		%

Persistency:
Group Long-term Disability	86.7		%	84.2		%	87.4		%	89.5		%
Group Life	85.5		%	82.0		%	84.1		%	81.3		%
Supplemental	91.5		%	91.5		%	91.0		%	89.9		%

10. 1

Unum Group Financial Results for Colonial Life Segment



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	231.3		$	219.1		$	884.2		$	830.0
Life	81.0			74.2			300.4			273.8
Cancer and Critical Illness	86.0			81.0			326.8			313.3
Total Premium Income	398.3			374.3			1,511.4			1,417.1
Net Investment Income	37.3			35.1			144.9			141.5
Other Income	0.3			0.3			1.1			1.2
Total	435.9			409.7			1,657.4			1,559.8

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	205.7			190.2			788.6			726.4
Commissions	90.2			85.2			344.5			313.6
Deferral of Acquisition Costs	(78.3		)	(73.0		)	(295.5		)	(270.1		)
Amortization of Deferred Acquisition Costs	60.2			55.8			224.4			208.1
Other Expenses	77.1			69.1			282.8			267.6
Total	354.9			327.3			1,344.8			1,245.6

Income Before Income Tax and Net Realized Investment Gains and Losses	81.0			82.4			312.6			314.2
UDB Reserve Increase	—			—			12.4			—
Adjusted Operating Income	$	81.0		$	82.4		$	325.0		$	314.2

Operating Ratios (% of Premium Income):
Benefit Ratio	51.6		%	50.8		%	52.2		%	51.3		%
Benefit Ratio Excluding UDB Reserve Increase							51.4		%
Other Expense Ratio	19.4		%	18.5		%	18.7		%	18.9		%
Income Ratio	20.3		%	22.0		%	20.7		%	22.2		%
Adjusted Operating Income Ratio							21.5		%

Persistency:
Accident, Sickness, and Disability	75.3		%	74.6		%	75.1		%	75.6		%
Life	84.2		%	84.5		%	84.4		%	85.0		%
Cancer and Critical Illness	83.1		%	81.9		%	82.7		%	82.9		%

Unum Group Financial Results for Closed Block Segment



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Individual Disability	$	109.4		$	121.3		$	471.8		$	521.9
Long-term Care	161.3			163.1			648.7			643.9
All Other	2.6			2.5			8.7			4.6
Total Premium Income	273.3			286.9			1,129.2			1,170.4
Net Investment Income	337.7			335.3			1,354.0			1,352.2
Other Income	19.0			20.8			79.8			86.0
Total	630.0			643.0			2,563.0			2,608.6

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	541.0			548.7			2,191.8			2,223.7
Commissions	21.3			23.0			90.0			93.8
Interest and Debt Expense	1.7			1.7			6.7			6.9
Other Expenses	37.1			38.0			150.6			154.7
Total	601.1			611.4			2,439.1			2,479.1

Adjusted Operating Income	$	28.9		$	31.6		$	123.9		$	129.5

Interest Adjusted Loss Ratios:
Individual Disability	77.1		%	83.6		%	82.4		%	83.6		%
Long-term Care	96.6		%	88.6		%	91.1		%	91.1		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	13.6		%	13.2		%	13.3		%	13.2		%
Adjusted Operating Income Ratio	10.6		%	11.0		%	11.0		%	11.1		%

Persistency:
Individual Disability	89.3		%	90.4		%	89.6		%	90.9		%
Long-term Care	95.7		%	95.1		%	95.9		%	94.8		%

Unum Group Financial Results for Corporate Segment



	Three Months Ended						Year Ended
	3/31/2018			3/31/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Net Investment Income	$	5.5		$	2.9		$	21.4		$	18.5
Other Income	1.2			0.4			2.9			4.9
Total	6.7			3.3			24.3			23.4

Interest and Other Expenses	47.0			63.7			191.7			186.4

Loss Before Income Tax and Net Realized Investment Gains and Losses	(40.3		)	(60.4		)	(167.4		)	(163.0		)
Loss from Guaranty Fund Assessment	—			20.6			20.6			—
Adjusted Operating Loss	$	(40.3	)	$	(39.8	)	$	(146.8	)	$	(163.0	)

Unum Group Reserves



	March 31, 2018
	Gross													Total
	Policy				Claim Reserves									Reinsurance		Total
	Reserves		%		Incurred			IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	5,973.2		$	656.6	28.6	%	$	6,629.8	$	72.6	$	6,557.2
Group Life and Accidental Death & Dismemberment	54.5		0.3		717.1			217.7		4.0		989.3		5.0		984.3
Individual Disability	529.4		2.8		1,333.0			133.5		6.3		1,995.9		210.3		1,785.6
Voluntary Benefits	1,579.2		8.2		48.9			64.0		0.5		1,692.1		27.3		1,664.8
Dental and Vision	—		—		(0.8		)	11.2		—		10.4		0.2		10.2
Unum US Segment	2,163.1		11.3		8,071.4			1,083.0		39.4		11,317.5		315.4		11,002.1

Unum UK Segment	18.7		0.1		2,002.6			100.3		9.1		2,121.6		87.7		2,033.9

Colonial Life Segment	2,014.1		10.6		292.2			137.1		1.9		2,443.4		8.5		2,434.9

Individual Disability	393.6		2.1		9,313.7			221.9		41.1		9,929.2		1,618.7		8,310.5
Long-term Care	8,550.4		44.9		1,526.4			154.7		7.2		10,231.5		39.2		10,192.3
Other	5,913.0		31.0		185.6			119.7		1.3		6,218.3		5,118.0		1,100.3
Closed Block Segment	14,857.0		78.0		11,025.7			496.3		49.6		26,379.0		6,775.9		19,603.1

Subtotal	$	19,052.9	100.0	%	$	21,391.9		$	1,816.7	100.0	%	42,261.5		7,187.5		35,074.0

Adjustment Related to Unrealized Investment Gains and Losses												4,030.1		321.0		3,709.1

Consolidated												$	46,291.6	$	7,508.5	$	38,783.1

The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are primarily due to movements in the U.S. Treasury rates and credit spreads.

Unum Group Reserves



	December 31, 2017
	Gross												Total Reinsurance Ceded
	Policy Reserves				Claim Reserves										Total Net
	Policy Reserves		%		Incurred		IBNR		%		Total				Total Net
Group Disability	$	—	—	%	$	6,047.0	$	624.2	28.7	%	$	6,671.2	$	73.8	$	6,597.4
Group Life and Accidental Death & Dismemberment	54.9		0.3		735.5		208.0		4.1		998.4		5.2		993.2
Individual Disability	533.4		2.8		1,318.0		137.6		6.3		1,989.0		207.5		1,781.5
Voluntary Benefits	1,566.7		8.3		46.7		61.0		0.5		1,674.4		27.3		1,647.1
Dental and Vision	—		—		0.7		11.3		0.1		12.0		0.3		11.7
Unum US Segment	2,155.0		11.4		8,147.9		1,042.1		39.7		11,345.0		314.1		11,030.9

Unum UK Segment	18.1		0.1		1,918.3		108.3		8.7		2,044.7		87.0		1,957.7

Colonial Life Segment	1,989.4		10.5		288.3		137.2		1.8		2,414.9		8.5		2,406.4

Individual Disability	418.5		2.2		9,407.4		219.1		41.5		10,045.0		1,619.8		8,425.2
Long-term Care	8,414.3		44.5		1,494.8		150.9		7.1		10,060.0		40.3		10,019.7
Other	5,894.8		31.3		187.3		120.4		1.2		6,202.5		5,090.6		1,111.9
Closed Block Segment	14,727.6		78.0		11,089.5		490.4		49.8		26,307.5		6,750.7		19,556.8

Subtotal	$	18,890.1	100.0	%	$	21,444.0	$	1,778.0	100.0	%	42,112.1		7,160.3		34,951.8

Adjustment Related to Unrealized Investment Gains and Losses											5,094.7		375.8		4,718.9

Consolidated											$	47,206.8	$	7,536.1	$	39,670.7

14. 1

Unum Group Investments



	3/31/2018						3/31/2018			12/31/2017
Fixed Maturity Securities (Fair Value)
Public	$	29,149.9		65.6	%	Selected Statistics
Asset-Backed Securities	83.5			0.2		Earned Book Yield	5.09		%	5.23		%
Residential Mortgage-Backed Securities (1)	1,653.9			3.7		Average Duration (in years)	7.66			7.70
Commercial Mortgage-Backed Securities	105.4			0.2
Private Placements	5,433.6			12.2
High Yield	3,255.2			7.3
Government Securities	2,420.0			5.4
Municipal Securities (2)	2,357.3			5.3
Redeemable Preferred Stocks	41.3			0.1
Total	$	44,500.1		100.0	%

	Amortized Cost			Fair Value
Quality Ratings of Fixed Maturity Securities						Schedule BA and Non-Current
Aaa	8.2		%	8.0	%	Total Non-Current Investments	$	36.2		$	32.9
Aa	7.4			7.9		Total Schedule BA Assets	$	532.4		$	535.4
A	28.4			29.6
Baa	48.0			47.2
Below Baa	8.0			7.3
Total	100.0		%	100.0	%

(1) Includes $9.7 million of high yield mortgage-backed securities.
(2) Includes $1.4 million of high yield taxable municipal securities.

Unum Group Investments at March 31, 2018



Fixed Maturity Securities - By Industry Classification - Unrealized Gains and Losses
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	$	2,835.1	$	209.5	$	578.9	$	18.7	$	2,256.2	$	228.2
Capital Goods	4,210.2		378.4		801.2		26.5		3,409.0		404.9
Communications	2,956.2		338.5		535.4		26.8		2,420.8		365.3
Consumer Cyclical	1,399.0		104.3		224.9		5.7		1,174.1		110.0
Consumer Non-Cyclical	6,737.4		520.2		1,870.7		81.8		4,866.7		602.0
Energy	4,857.2		520.1		704.2		40.5		4,153.0		560.6
Financial Institutions	3,394.8		218.6		762.7		17.0		2,632.1		235.6
Mortgage/Asset-Backed	1,842.8		66.4		480.4		14.7		1,362.4		81.1
Sovereigns	873.7		181.1		38.8		0.8		834.9		181.9
Technology	1,529.9		61.1		341.0		9.2		1,188.9		70.3
Transportation	1,978.5		211.9		303.0		10.2		1,675.5		222.1
U.S. Government Agencies and Municipalities	3,903.6		476.0		394.4		13.6		3,509.2		489.6
Public Utilities	7,981.7		1,062.1		552.9		27.6		7,428.8		1,089.7
Total	$	44,500.1	$	4,348.2	$	7,588.5	$	293.1	$	36,911.6	$	4,641.3

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	$	3,993.0	$	79.8			$	704.2	$	19.8
91 through 180 days	681.4		40.5				227.3		13.6
181 through 270 days	827.2		30.5				62.0		2.9
271 days to 1 year	0.2		—				—		—
Greater than 1 year	779.0		47.9				314.2		58.1
Total	$	6,280.8	$	198.7			$	1,307.7	$	94.4

15. 1

Appendix to Statistical Supplement

2018 Significant Items

•

In January of 2018, we entered into a definitive agreement to acquire Pramerica Zycie TUiR SA ("Pramerica"), a financial protection benefits provider in Poland. The acquisition of Pramerica will expand our European presence, which we believe to be an attractive market for financial protection benefits. The transaction, which we anticipate will close by the end of 2018 subject to customary approvals and closing conditions, is not expected to materially impact our results of operations or financial position for 2018 or alter our share repurchase and common stock dividend strategy.

•

In January 2016, the Financial Accounting Standards Board (FASB) issued an update that changed the accounting and disclosure requirements for certain financial instruments. These changes include a requirement to measure equity investments, other than those that result in consolidation or are accounted for under the equity method, at fair value through net income unless the investment qualifies for certain practicability exceptions. In addition, the update clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. We adopted this update effective January 1, 2018 using a modified retrospective approach through a cumulative-effect adjustment as of January 1, 2018 which resulted in a decrease to accumulated other comprehensive income (AOCI) of $17.5 million, an increase to retained earnings of $14.5 million, a decrease to other long-term investments of $3.8 million, and a decrease to deferred income tax liability of $0.8 million.

2017 Significant Items


•	Fourth quarter of 2017 unclaimed death benefit reserve increase of $18.5 million for Unum US group life, $8.1 million for Unum US voluntary life and $12.4

million for Colonial Life voluntary life, for a total reserve increase of $39.0 million before tax and $25.4 million after tax.


•	Fourth quarter of 2017 net tax benefit of $31.5 million resulting from H.R.1, An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent

Resolution on the Budget for Fiscal Year 2018, more commonly known as the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. This is comprised of

a tax benefit of $97.9 million related to the revaluation of our net deferred tax liabilities associated with our U.S. operations to the newly enacted U.S. corporate tax

rate and a tax expense of $66.4 million resulting from the tax on undistributed and previously untaxed foreign earnings and profits.


•	Fourth quarter of 2017 results for the Unum US individual disability product line reflects a reserve release of $19.5 million before tax and $12.7 million after tax,

resulting from our annual review of reserve adequacy which reflects the recognition of updated morbidity assumptions in our disabled life reserves.


•	First quarter of 2017 loss from a guaranty fund assessment of $20.6 million before tax and $13.4 million after tax.

2016 Significant Item

•

In August 2016, we acquired 100 percent of the shares and voting interests in H&J Capital, L.L.C., parent of Starmount Life Insurance Company and AlwaysCare Benefits (which collectively we refer to as Starmount) for a total cash purchase price of $140.3 million, plus contingent cash consideration of $10.0 million. Starmount Life Insurance Company is an independent provider of dental and vision insurance in the U.S. workplace, and AlwaysCare Benefits is a nationally licensed, third-party administrator. Starmount's dental and vision products and new dental and vision products marketed by Unum US are reported in our Unum US segment within our supplemental and voluntary product lines. Colonial Life dental and vision products were introduced in 2018 and are reported in our Accident, Sickness and Disability product line. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue, operating results, or sales during 2016.



	16

Appendix to Statistical Supplement - Continued

Non-GAAP Financial Measures

We analyze our performance using non-GAAP financial measures which exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We believe the following non-GAAP financial measures are better performance measures and better indicators of the revenue and profitability and underlying trends in our business:


•	Consolidated adjusted operating revenue, which excludes realized investment gains or losses;


•	After-tax adjusted operating income or loss, which excludes realized investment gains or losses and certain other items, as applicable;


•	Adjusted operating return on equity, which is calculated using after-tax adjusted operating income or loss and excludes from equity the unrealized gain or loss on securities and net gain on hedges;


•	Leverage ratio, which excludes the unrealized gain or loss on securities and net gain on hedges, and the non-recourse debt and associated capital of Northwind Holdings, LLC;


•	Book value per common share, which is calculated excluding AOCI; and


•	Benefit ratio for our Unum US individual disability product, adjusted for the reserve release in the fourth quarter of 2017.

Realized investment gains or losses and unrealized gains or losses on securities and net gains on hedges depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. Leverage ratio and book value per common share excluding certain components of AOCI, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures. We also exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace the comparable GAAP measures in the determination of overall profitability.

Information reconciling the Company’s outlook on after-tax adjusted operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax adjusted operating income are those described in this Appendix to Statistical Supplement. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio. For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 16.2, other than book value per common share, which is presented on page 2.

16. 1

Reconciliation of Non-GAAP Financial Measures



	Three Months Ended
	March 31			December 31		September 30		June 30		March 31		December 31		September 30		June 30		March 31
	2018			2017								2016
Total Revenue	$	2,899.6		$	2,839.2	$	2,819.1	$	2,822.0	$	2,806.5	$	2,796.5	$	2,763.3	$	2,761.3	$	2,725.4
Excluding:
Net Realized Investment Gain (Loss)	(2.2		)	11.4		9.8		8.1		11.0		28.4		11.0		5.3		(20.5		)
Adjusted Operating Revenue	$	2,901.8		$	2,827.8	$	2,809.3	$	2,813.9	$	2,795.5	$	2,768.1	$	2,752.3	$	2,756.0	$	2,745.9



							Annualized
	After-Tax Adjusted			Average			Adjusted Operating
	Operating			Allocated			Return
	Income (Loss)			Equity⁽¹⁾			On Equity
Three Months Ended March 31, 2018
Unum US	$	193.2		$	4,325.4		17.9	%
Unum UK	23.5			653.4			14.4	%
Colonial Life	64.2			1,455.0			17.6	%
Core Operating Segments	280.9			6,433.8			17.5	%
Closed Block	23.4			3,544.5
Corporate	(29.2		)	(1,193.7		)
Total	$	275.1		$	8,784.6		12.5	%

Three Months Ended March 31, 2017
Unum US	$	156.2		$	4,066.1		15.4	%
Unum UK	22.7			575.4			15.8	%
Colonial Life	53.7			1,231.4			17.4	%
Core Operating Segments	232.6			5,872.9			15.8	%
Closed Block	21.3			3,161.3
Corporate	(17.8		)	(780.4		)
Total	$	236.1		$	8,253.8		11.4	%

⁽¹⁾Excludes net unrealized gain on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.3. Due to the implementation of a Financial Accounting Standards Board update for which the beginning balance of 2018 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2018 using internally allocated equity that reflects the adjusted beginning balance at January 1, 2018. As a result, average equity for the three months ended March 31, 2018 for certain of our segments will not compute using the historical allocated equity at December 31, 2017.



	16. 2

Reconciliation of Non-GAAP Financial Measures - Continued



	After-Tax Adjusted			Average			Adjusted Operating
	Operating			Allocated			Return
	Income (Loss)			Equity⁽²⁾			On Equity
Year Ended December 31, 2017
Unum US	$	656.2		$	4,130.2		15.9	%
Unum UK	92.1			607.3			15.2	%
Colonial Life	211.2			1,308.1			16.2	%
Core Operating Segments	959.5			6,045.6			15.9	%
Closed Block	86.4			3,290.1
Corporate	(69.7		)	(893.3		)
Total	$	976.2		$	8,442.4		11.6	%

Year Ended December 31, 2016
Unum US	$	598.3		$	3,992.2		15.0	%
Unum UK	113.8			610.6			18.6	%
Colonial Life	204.9			1,173.9			17.4	%
Core Operating Segments	917.0			5,776.7			15.9	%
Closed Block	87.0			3,055.1
Corporate	(88.4		)	(691.0		)
Total	$	915.6		$	8,140.8		11.2	%

⁽²⁾Excludes net unrealized gain on securities and net gain on hedges and is calculated using the stockholders' equity balances presented below.

Average allocated equity is computed as follows:



	3/31/2018		12/31/2017		3/31/2017		12/31/2016		12/31/2015
Total Stockholders' Equity	$	9,499.5	$	9,574.9	$	9,107.4	$	8,968.0	$	8,663.9
Excluding:
Net Unrealized Gain on Securities	356.1		607.8		483.0		440.6		204.3
Net Gain on Hedges	273.5		282.3		316.8		327.5		378.0
Total Adjusted Stockholders' Equity	$	8,869.9	$	8,684.8	$	8,307.6	$	8,199.9	$	8,081.6

	Three Months Ended		Twelve Months Ended		Three Months Ended		Twelve Months Ended
	3/31/2018		12/31/2017		3/31/2017		12/31/2016
Average Stockholders' Equity Excluding Net Unrealized Gain on Securities and Net Gain on Hedges	$	8,784.6	$	8,442.4	$	8,253.8	$	8,140.8

16. 3

Reconciliation of Non-GAAP Financial Measures - Continued



	Three Months Ended March 31
	2018						2017
	(in millions)			per share *			(in millions)			per share *
Net Income	$	273.5		$	1.23		$	229.9		$	1.00
Excluding:
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of ($0.6); $3.8)	(1.6		)	(0.01		)	7.2			0.04
Loss from Guaranty Fund Assessment (net of tax benefit of $-; $7.2)	—			—			(13.4		)	(0.06		)
After-tax Adjusted Operating Income	$	275.1		$	1.24		$	236.1		$	1.02



	Year Ended December 31
	2017						2016
	(in millions)			per share *			(in millions)		per share *
Net Income	$	994.2		$	4.37		$	931.4	$	3.95
Excluding:
Net Realized Investment Gain (Loss) (net of tax expense of $15.0; $8.4)	25.3			0.11			15.8		0.07
Loss from Guaranty Fund Assessment (net of tax benefit of $7.2; $-)	(13.4		)	(0.06		)	—		—
Unclaimed Death Benefits Reserve Increase (net of tax benefit of $13.6; $-)	(25.4		)	(0.11		)	—		—
Net Tax Benefit for Impacts of TCJA	31.5			0.14			—		—
After-tax Adjusted Operating Income	976.2			4.29			915.6		3.88
Excluding:
Unum US Individual Disability Reserve Release (net of tax expense of $6.8; $-)	12.7			0.05			—		—
After-tax Adjusted Operating Income, Excluding Unum US Individual Disability Reserve Release	$	963.5		$	4.24		$	915.6	$	3.88

* Assuming Dilution

16. 4

Reconciliation of Non-GAAP Financial Measures - Continued



	March 31						December 31
	2018			2017			2017			2016
Debt	$	2,921.9		$	2,984.6		$	2,938.3		$	2,999.4
Excluding:
Non-recourse Debt	181.3			240.2			196.0			255.0
Adjusted Debt	$	2,740.6		$	2,744.4		$	2,742.3		$	2,744.4

Total Stockholders' Equity	$	9,499.5		$	9,107.4		$	9,574.9		$	8,968.0
Excluding:
Net Unrealized Gain on Securities and Net Gain on Hedges	629.6			799.8			890.1			768.1
Northwind Capital	928.3			860.5			912.2			862.6
Equity, As Adjusted	7,941.6			7,447.1			7,772.6			7,337.3
Debt, As Adjusted	2,740.6			2,744.4			2,742.3			2,744.4
Total Adjusted Capital	$	10,682.2		$	10,191.5		$	10,514.9		$	10,081.7

Leverage Ratio	25.7		%	26.9		%	26.1		%	27.2		%

16. 5

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