8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):		November 1, 2011
UNUM GROUP
(Exact name of registrant as specified in its charter)
Delaware	001-11294	62-1598430
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1 Fountain Square

Chattanooga, Tennessee 37402

(Address of principal executive offices)(Zip Code)

(423) 294-1011

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02Results of Operations and Financial Condition.

On November 1, 2011, Unum Group (“Unum Group” or the “Company”), a Delaware corporation, issued a news release reporting its results for the third quarter of 2011, a copy of which is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

Also on November 1, 2011, Unum Group posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the third quarter of 2011. A copy of the Statistical Supplement is furnished herewith as Exhibit 99.2 and incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information included or incorporated in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information and exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits.	The following exhibits are furnished (but not filed) with this Report:
99.1	News release of Unum Group dated November 1, 2011, concerning earnings for the third quarter of 2011.
99.2	Statistical Supplement of Unum Group for the third quarter of 2011.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Unum Group
	(Registrant)
Date: November 1, 2011	By:	/s/ Susan N. Roth
		Name:	Susan N. Roth
		Title:	Vice President, Transactions, SEC
			and Corporate Secretary

INDEX TO EXHIBITS

EXHIBIT
99.1	News release of Unum Group dated November 1, 2011, concerning earnings for the third quarter of 2011.
99.2	Statistical Supplement of Unum Group for the third quarter of 2011.

EX-99.1

	Exhibit 99.1
	1 Fountain Square
	Chattanooga, TN 37402
	www.unum.com

	FOR IMMEDIATE RELEASE
news	Contacts
	INVESTORS	Tom White	423 294 8996
		Rob Lockerman	423 294 7498
	MEDIA	Jim Sabourin	423 294 6300
			866 759 8686

Unum Group Reports Third Quarter 2011 Results

CHATTANOOGA, Tenn.(November 1, 2011) - Unum Group (NYSE: UNM) today reported net income of $205.6 million ($0.69 per diluted common share) for the third quarter of 2011, compared to net income of $220.8 million ($0.68 per diluted common share) for the third quarter of 2010.

Included in the results for the third quarter of 2011 are net realized after-tax investment losses of $15.9 million ($0.05 per diluted common share), compared to net realized after-tax investment gains of $0.9 million (less than $0.01 per diluted common share) in the third quarter of 2010. Net realized after-tax investment losses for the third quarter of 2011 include an after-tax loss of $21.8 million resulting from changes in the fair value of an embedded derivative in a modified coinsurance contract, compared to an after-tax gain of $1.1 million in the third quarter of 2010.

Adjusting for these items, income on an after-tax basis was $221.5 million ($0.74 per diluted common share) in the third quarter of 2011, compared to $219.9 million ($0.68 per diluted common share) in the third quarter of 2010.

“I am pleased that despite the pressures in our businesses, especially in the UK, our earnings per share grew by nine percent this quarter,” said Thomas R. Watjen, president and chief executive officer. “We continue to see good growth opportunities in many of our target markets, and our solid capital position has enabled us to aggressively repurchase stock at attractive prices.  Looking ahead, the combination of weak employment growth and low interest rates will continue to create challenges for us, but I'm confident we are well-positioned to continue to produce solid financial results.”

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.

RESULTS BY SEGMENT

In the following discussions of the Company's operating segment results, “operating revenue” excludes net realized investment gains and losses. “Operating income” or “operating loss” excludes income tax and net realized investment gains and losses.

Unum US Segment

Unum US reported operating income of $219.5 million in the third quarter of 2011, an increase of 7.2 percent from $204.7 million in the third quarter of 2010. Premium income for the segment increased 1.3 percent to $1,226.5 million in the third quarter of 2011; premium income in the third quarter of 2010 was $1,210.6 million.

Within the Unum US operating segment, the group disability line of business reported operating income of $72.1 million in the third quarter of 2011, compared to operating income of $77.8 million in the third quarter of 2010. The 7.3 percent decrease in operating income was driven by a decline in premium income and an increase in the benefit ratio for the third quarter of 2011 to 85.5 percent, compared to 84.6 percent in the third quarter of 2010. The higher benefit ratio resulted from a higher level of paid incidence for both long-term and short-term disability, as well as a decrease in the discount rate for group long-term disability new claim incurrals. Premium income in group disability declined 0.9 percent to $508.9 million in the third quarter of 2011, compared to $513.6 million in the third quarter of 2010. Ongoing price competition, along with challenging economic conditions which negatively impact the growth of employment levels and wages and the Company's continued commitment to disciplined pricing, renewals, and risk selection, were contributing factors to the decline in premium income. Sales of fully insured group long-term disability products in the third quarter of 2011 increased 4.3 percent to $22.0 million, compared to $21.1 million in the third quarter of 2010. Sales of fully insured group short-term disability products increased 7.8 percent to $12.4 million in the third quarter of 2011, compared to $11.5 million in the third quarter of 2010. Premium persistency in the group long-term disability line of business was 90.1 percent through the first three quarters of 2011, compared to 90.2 percent through the first three quarters of 2010. Case persistency for this line was 88.7 percent through the first three quarters of 2011, compared to 88.4 percent through the first three quarters of 2010. Premium persistency in the group short-term disability line of business was 90.2 percent through the first three quarters of 2011, compared to 89.1 percent through the first three quarters of 2010. Case persistency for the short-term disability line was 87.8 percent through the first three quarters of 2011, compared to 87.2 percent through the first three quarters of 2010.

The group life and accidental death and dismemberment line of business reported a 0.6 percent increase in operating income to $53.1 million in the third quarter of 2011, compared to $52.8 million in the third quarter of 2010. Premium income for this line of business increased 1.8 percent to $305.3 million in the third quarter of 2011, compared to $300.0 million in the third quarter of 2010, reflecting higher sales, partially offset by lower premium persistency. The benefit ratio in the third quarter of 2011 was 70.2 percent, compared to 70.4

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 2

percent in the third quarter of 2010. Sales of group life and accidental death and dismemberment products increased 2.6 percent in the third quarter of 2011 to $27.8 million from $27.1 million in the third quarter of 2010. Premium persistency in the group life line of business was 87.7 percent through the first three quarters of 2011, compared to 91.8 percent through the first three quarters of 2010. Case persistency in the group life line of business through the first three quarters of 2011, at 88.5 percent, was up slightly from 88.3 percent through the first three quarters of 2010.

The Unum US supplemental and voluntary line of business reported a 27.3 percent increase in operating income to $94.3 million in the third quarter of 2011, compared to $74.1 million in the third quarter of 2010. The increase is primarily attributable to increased operating income in the voluntary benefits and individual disability - recently issued lines of business which was partly offset by lower income in the long-term care line of business. Premium income for this line of business increased 3.9 percent to $412.3 million in the third quarter of 2011, compared to $397.0 million in the third quarter of 2010, primarily reflecting higher sales in the voluntary benefits line of business. The interest adjusted loss ratio for the individual disability - recently issued line of business in the third quarter of 2011 declined to 30.7 percent from 33.8 percent in the third quarter of 2010 due to favorable claims performance. The interest adjusted loss ratio for long-term care increased to 86.0 percent in the third quarter of 2011 from 80.9 percent in the third quarter of 2010 due primarily to an increase in active life reserves as a result of continued high persistency levels as well as an increase in claim incidence rates. The benefit ratio for voluntary benefits decreased to 50.3 percent in the third quarter of 2011 from 54.6 percent in the third quarter of 2010 due primarily to a lower average paid claim size for voluntary life and lower paid incidence and prevalence rates for voluntary disability. Relative to the third quarter of 2010, sales in the voluntary benefits line of business increased 15.7 percent in the third quarter of 2011 to $42.7 million.

Unum UK Segment

Unum UK reported operating income of $34.9 million in the third quarter of 2011, a decrease of 26.1 percent from $47.2 million in the third quarter of 2010. In local currency, operating income for the third quarter of 2011 decreased 28.6 percent, to £21.7 million from £30.4 million in the third quarter of 2010.

The benefit ratio in the third quarter of 2011 was 78.8 percent, compared to 66.9 percent in the comparable quarter in 2010. The higher benefit ratio in the third quarter of 2011 resulted from unfavorable risk experience in group long-term disability due primarily to an increase in the average size and severity of new claims in the third quarter of 2011 relative to the third quarter of 2010.

Premium income increased 8.7 percent to $175.5 million in the third quarter of 2011, compared to $161.4 million in the third quarter of 2010. In local currency, premium income increased 4.8 percent to £109.1 million in the third quarter of 2011, compared to £104.1 million in the third quarter of 2010. Persistency in the group long-term disability line of business was 87.1 percent through the first three quarters of 2011, compared to 91.2 percent through the first three quarters of 2010. Persistency in the group life line of business was 88.7 percent through the first three quarters of 2011, compared to 92.5 percent through the first three quarters of

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 3

2010. Sales decreased 28.0 percent to $21.3 million in the third quarter of 2011, compared to $29.6 million in the third quarter of 2010. In local currency, sales for the third quarter of 2011 decreased 30.4 percent to £13.3 million, compared to £19.1 million in the third quarter of 2010.

Colonial Life Segment

Colonial Life reported a 5.6 percent decrease in operating income to $70.3 million in the third quarter of 2011, compared to $74.5 million in the third quarter of 2010. Increased premium income and higher net investment income were more than offset by a higher benefit ratio in the quarter.

The benefit ratio in the third quarter of 2011 was 52.6 percent, compared to 49.9 percent for the same period in 2010. Accident, sickness, and disability risk results were less favorable compared to the same period of 2010 due to a higher level of incurred claims in the accident product line. Risk results for the cancer and critical illness line of business were less favorable due to an increased level of cancer claims coming from an older block of cancer products. These results were partly offset by favorable risk results in the life line of business.

Premium income for the third quarter of 2011 increased 5.3 percent to $283.7 million, compared to $269.3 million in the third quarter of 2010. Sales increased 3.6 percent to $83.2 million in the third quarter of 2011 from $80.3 million in the third quarter of 2010, primarily due to an increase in new account sales and sales in the core commercial market, partially offset by a decrease in public sector and large case commercial sales. The number of new accounts decreased 1.8 percent in the third quarter of 2011 compared to the third quarter of 2010, while average weekly producers increased 2.8 percent compared to the third quarter of 2010.

Individual Disability - Closed Block Segment

The Individual Disability - Closed Block segment reported operating income of $14.0 million in the third quarter of 2011, compared to $9.8 million in the third quarter of 2010, primarily reflecting lower operating expenses and a decline in the interest adjusted loss ratio, which more than offset a decline in both premium income and net investment income due to the expected run-off of this block of closed business.  Premium income declined 5.8 percent to $196.4 million in the third quarter of 2011 compared to $208.5 million in the third quarter of 2010. The interest adjusted loss ratio for the segment was 84.9 percent in the third quarter of 2011, compared to 85.5 percent in the third quarter of 2010, reflecting favorable mortality experience. 

Corporate and Other Segment

The Corporate and Other segment reported an operating loss of $21.5 million in the third quarter of 2011, compared to a loss of $10.8 million in the third quarter of 2010. The increased operating loss was driven primarily by lower net investment income resulting from lower short-term interest rates and investments in low-income housing tax credit partnerships. The negative impact on net investment income from the increased level of investments in low-income housing tax credit partnerships is offset by a lower income tax rate due to the tax benefits recognized as a result of these investments.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 4

OTHER INFORMATION

Shares Outstanding

The Company's average number of shares outstanding, assuming dilution, was 299.2 million for the third quarter of 2011, compared to 324.5 million for the third quarter of 2010. Shares outstanding totaled 292.3 million at September 30, 2011. During the third quarter of 2011, the Company repurchased approximately 11.1 million shares at a cost of $250.2 million. Through the first three quarters of 2011, the Company repurchased approximately 25.4 million shares at a cost of $619.9 million. At September 30, 2011, the Company had $524.7 million remaining under its $1.0 billion share repurchase authorization.

Capital Management

At September 30, 2011, the weighted average risk-based capital for the Company's traditional US insurance companies was approximately 396 percent; leverage was 21.2 percent; and cash and marketable securities in the holding companies equaled $647 million.

Leverage is measured as total debt to total capital, which the Company defines as debt plus stockholders' equity, excluding the net unrealized gain or loss on securities and the net gain or loss on cash flow hedges. Leverage also excludes the non-recourse debt and associated capital of Tailwind Holdings, LLC and Northwind Holdings, LLC and the short-term debt arising from securities lending agreements.

Book Value

Book value per common share as of September 30, 2011 was $32.36, compared to $28.08 at September 30, 2010.

Outlook

The Company continues to anticipate growth in after-tax operating income per share for full year 2011 to be in the range of six percent to twelve percent, including the effect of expected share repurchases.

NON-GAAP RECONCILIATION

The Company analyzes its performance using non-GAAP financial measures which exclude certain items and the related tax thereon from net income. The Company believes operating income or loss, excluding realized investment gains and losses, which may be recurring, is a better performance measure and a better indicator of the profitability and underlying trends in its business. Realized investment gains and losses are primarily dependent on market conditions and general economic events and are not necessarily related to decisions regarding the Company's underlying business. The Company believes leverage excluding the non-recourse debt of Northwind and Tailwind, the short-term debt arising from securities lending agreements, and the unrealized gains and losses on securities and the net gain or loss on cash flow hedges, which also tend to fluctuate depending on market conditions and general economic trends, is an important measure. For reconciliation to the most directly comparable GAAP measures, refer to the attached digest of earnings.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 5

CONFERENCE CALL INFORMATION

Members of Unum Group senior management will host a conference call on Wednesday, November 2, 2011 at 9:00 A.M. (Eastern Time) to discuss the results of operations for the third quarter. Topics may include forward-looking information such as the Company's outlook on future results, trends in operations, and other material information.

The dial-in number for the conference call is (888) 811-5445 for U.S. and Canada (pass code 4920554). For international, the dial-in number is (913) 312-0407 (pass code 4920554). A live webcast of the call will also be available at www.investors.unum.com in a listen-only mode. It is recommended that webcast viewers access the “Investors” section of the Company's website and opt-in to the webcast approximately 5-10 minutes prior to the start of the call. The Company will maintain a replay of the call on its website through Wednesday, November 9, 2011. A replay of the call will also be available by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International) - pass code 4920554.

In conjunction with today's earnings announcement, the Company's Statistical Supplement for the third quarter of 2011 is available on the “Investors” section of the Company's website.

ABOUT UNUM GROUP

Unum (www.unum.com) is one of the leading providers of employee benefits products and services and the largest provider of disability insurance products in the United States and the United Kingdom.

SAFE HARBOR STATEMENT

Certain information in this press release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those not based on historical information, but rather relate to future operations, strategies, financial results, or other developments and speak only as of the date made. These forward-looking statements, including statements about anticipated growth in after-tax operating income per share, and planned share repurchases, are subject to numerous assumptions, risks, and uncertainties, many of which are beyond our control. The following factors, in addition to other factors mentioned from time to time, may cause actual results to differ materially from those contemplated by the forward-looking statements: (1) unfavorable economic or business conditions, both domestic and foreign; (2) legislative, regulatory, or tax changes, both domestic and foreign, including the effect of potential legislation and increased regulation in the current political environment; (3) sustained periods of low interest rates; (4) changes in claim incidence, recovery rates, and offsets due to, among other factors, the rate of unemployment and consumer confidence, the emergence of new diseases, epidemics, or pandemics, new trends and developments in medical treatments, the effectiveness of claims management operations, and changes in government programs; (5) fluctuation in insurance reserve liabilities; (6) investment results, including but not limited to, realized investment losses resulting from defaults, contractual terms of derivative contracts, and impairments that differ from our assumptions and historical experience; (7) the lack of appropriate investments in the market which can be acquired to match our liability cash flows and duration; (8) changes in interest rates, credit spreads, and securities prices; (9) increased competition from other insurers and financial services companies due to

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 6

industry consolidation or other factors; (10) changes in demand for our products due to, among other factors, changes in societal attitudes, the rate of unemployment, and consumer confidence; (11) changes in accounting standards, practices, or policies; (12) changes in our financial strength and credit ratings; (13) rating agency actions, state insurance department market conduct examinations and other inquiries, other governmental investigations and actions, and negative media attention; (14) effectiveness in managing our operating risks and the implementation of operational improvements and strategic growth initiatives; (15) actual experience in pricing, underwriting, and reserving that deviates from our assumptions; (16) actual persistency and/or sales growth that is higher or lower than projected; (17) effectiveness of our risk management program; (18) the level and results of litigation; (19) currency exchange rates; (20) ability of our subsidiaries to pay dividends as a result of regulatory restrictions; (21) ability and willingness of reinsurers to meet their obligations; (22) changes in assumptions related to intangible assets such as deferred acquisition costs, value of business acquired, and goodwill; (23) events or consequences relating to political instability, terrorism, or acts of war, both domestic and foreign; and (24) ability to recover our systems and information in the event of a disaster or unanticipated event and to protect our systems and information from unauthorized access and deliberate attacks.

For further discussion about risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Part I, Item 1A of our annual report on Form 10-K for the year ended December 31, 2010 and our subsequently filed Forms 10-Q. The forward-looking statements in this press release are being made as of the date of this press release, and the Company expressly disclaims any obligation to update or revise any forward-looking statement contained herein, even if made available on our website or otherwise.

###

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 7

DIGEST OF EARNINGS

(Unaudited)

Unum Group (UNM:NYSE)

and Subsidiaries

($ in millions, except share data)
	Three Months Ended September 30					Nine Months Ended September 30
	2011			2010		2011			2010
Operating Revenue by Segment	$	2,569.5		$	2,526.8	$	7,685.5		$	7,602.9
Net Realized Investment Gain (Loss)	(23.9		)	1.1		(12.3		)	(2.8		)
Total Revenue	$	2,545.6		$	2,527.9	$	7,673.2		$	7,600.1
Operating Income by Segment	$	317.2		$	325.4	$	973.8		$	998.6
Net Realized Investment Gain (Loss)	(23.9		)	1.1		(12.3		)	(2.8		)
Income Tax	87.7			105.7		300.7			335.5
Net Income	$	205.6		$	220.8	$	660.8		$	660.3
PER SHARE INFORMATION
Net Income Per Common Share
Basic	$	0.69		$	0.68	$	2.16		$	2.01
Assuming Dilution	$	0.69		$	0.68	$	2.15		$	2.00
Weighted Average Common Shares - Basic (000s)	298,185.8			323,083.5		305,694.5			328,828.6
Weighted Average Common Shares - Assuming Dilution (000s)	299,172.9			324,467.0		306,918.4			330,173.1

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

	Three Months Ended September 30
	2011						2010
	(in millions)			per share *			(in millions)			per share *
After-tax Operating Income	$	221.5		$	0.74		$	219.9		$	0.68
Net Realized Investment Gain (Loss), Net of Tax	(15.9		)	(0.05		)	0.9			—
Net Income	$	205.6		$	0.69		$	220.8		$	0.68
* Assuming Dilution
	September 30
	2011
	(in millions)
Debt, As Reported	$	2,928.9
Exclude Non-recourse Debt and Securities Lending Agreements	992.4
Debt, As Adjusted	$	1,936.5
Total Stockholders' Equity, As Reported	$	9,460.1
Exclude Net Unrealized Gain on Securities and Net Gain on Cash Flow Hedges	1,306.7
Exclude Northwind and Tailwind Capital	936.4
	7,217.0
Debt, As Adjusted	1,936.5
Total Capital, As Adjusted	$	9,153.5
Debt to Capital Ratio	21.2		%
	September 30
	2011						2010
	(in millions)			per share			(in millions)			per share
Total Stockholders' Equity (Book Value)	$	9,460.1		$	32.36		$	8,924.1		$	28.08
Net Unrealized Gain on Securities	885.6			3.03			487.9			1.53
Net Gain on Cash Flow Hedges	421.1			1.44			413.0			1.30
Subtotal	8,153.4			27.89			8,023.2			25.25
Foreign Currency Translation Adjustment	(116.9		)	(0.40		)	(103.4		)	(0.32		)
Subtotal	8,270.3			28.29			8,126.6			25.57
Unrecognized Pension and Postretirement Benefit Costs	(303.6		)	(1.04		)	(303.7		)	(0.96		)
Total Stockholders' Equity, As Adjusted	$	8,573.9		$	29.33		$	8,430.3		$	26.53

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 8

EX-99.2

Exhibit 99.2

Unum Group

Statistical Supplement Third 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					Nine Months Ended						Year Ended
	9/30/2011			9/30/2010		9/30/2011			9/30/2010			12/31/2010		12/31/2009		12/31/2008
Financial Results
Premium Income	$	1,881.2		$	1,850.2	$	5,625.7		$	5,563.2		$	7,431.4	$	7,475.5	$	7,783.3
Segment Operating Revenue	$	2,569.5		$	2,526.8	$	7,685.5		$	7,602.9		$	10,168.5	$	10,079.3	$	10,448.2
Net Realized Investment Gain (Loss)	(23.9		)	1.1		(12.3		)	(2.8		)	24.7		11.7		(465.9		)
Revenue	$	2,545.6		$	2,527.9	$	7,673.2		$	7,600.1		$	10,193.2	$	10,091.0	$	9,982.3
Net Income	$	205.6		$	220.8	$	660.8		$	660.3		$	886.1	$	852.6	$	553.2
Assets						$	60,040.9		$	59,054.7		$	57,307.7	$	54,477.0	$	49,417.4
Stockholders' Equity						$	9,460.1		$	8,924.1		$	8,944.4	$	8,500.1	$	6,397.9

2010

• Nine months ended September 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.

1

Unum Group Financial Highlights

	Three Months Ended				Nine Months Ended				Year Ended
	9/30/2011		9/30/2010		9/30/2011		9/30/2010		12/31/2010		12/31/2009		12/31/2008
Per Common Share Information
Net Income
Assuming Dilution	$	0.69	$	0.68	$	2.15	$	2.00	$	2.71	$	2.57	$	1.62
Basic	$	0.69	$	0.68	$	2.16	$	2.01	$	2.72	$	2.57	$	1.62
Dividends Paid	$	0.1050	$	0.0925	$	0.2900	$	0.2575	$	0.350	$	0.315	$	0.300
Book Value per Share:
As Reported					$	32.36	$	28.08	$	28.25	$	25.62	$	19.32
Excluding Net Unrealized Gain (Loss) on Securities and Net Gain on Cash Flow Hedges					$	27.89	$	25.25	$	25.82	$	23.36	$	20.45
Excluding Foreign Currency Translation Adjustment					$	28.29	$	25.57	$	26.17	$	23.60	$	20.99
Excluding Unrecognized Pension and Postretirement Benefit Costs					$	29.33	$	26.53	$	27.17	$	24.59	$	22.22
Price (UNM closing price on last trading day of period)					$	20.96	$	22.15	$	24.22	$	19.52	$	18.60

See "Consolidated Balance Sheets" on page 4 of this statistical supplement for detail on the components of Accumulated Other Comprehensive Income (Loss) excluded from Total Stockholders' Equity in computing the book value per share measures listed above.

At nine months ended September 30, 2010, 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 were $8,924.1 million, $487.9 million, $413.0 million, $(103.4) million, and $(303.7) million, respectively.

At year ended December 31, 2008, 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 were $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						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Revenue
Premium Income	$	1,881.2		$	1,850.2		$	5,625.7		$	5,563.2		$	7,431.4		$	7,475.5		$	7,783.3
Net Investment Income	629.2			618.4			1,885.0			1,861.2			2,495.5			2,346.6			2,389.0
Net Realized Investment Gain (Loss)	(23.9		)	1.1			(12.3		)	(2.8		)	24.7			11.7			(465.9		)
Other Income	59.1			58.2			174.8			178.5			241.6			257.2			275.9
Total Revenue	2,545.6			2,527.9			7,673.2			7,600.1			10,193.2			10,091.0			9,982.3
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,635.6			1,587.5			4,828.0			4,736.0			6,354.1			6,291.6			6,626.4
Commissions	220.5			214.0			662.7			640.1			855.4			837.1			853.3
Interest and Debt Expense - Non-recourse Debt	2.9			3.4			8.7			9.8			12.9			18.6			39.3
Interest and Debt Expense - All Other Debt	32.2			31.8			99.4			92.9			128.9			106.8			117.4
Deferral of Acquisition Costs	(155.6		)	(150.9		)	(472.1		)	(455.5		)	(607.7		)	(593.6		)	(590.9		)
Amortization of Deferred Acquisition Costs	125.2			130.6			400.4			407.7			547.1			526.2			519.1
Other Expenses	391.5			385.0			1,184.6			1,173.3			1,571.2			1,612.0			1,593.7
Total Benefits and Expenses	2,252.3			2,201.4			6,711.7			6,604.3			8,861.9			8,798.7			9,158.3
Income Before Income Tax	293.3			326.5			961.5			995.8			1,331.3			1,292.3			824.0
Income Tax	87.7			105.7			300.7			335.5			445.2			439.7			270.8
Net Income	$	205.6		$	220.8		$	660.8		$	660.3		$	886.1		$	852.6		$	553.2
Average Weighted Shares Outstanding
Basic	298,185,758			323,083,476			305,694,451			328,828,615			325,839,020			331,266,247			341,022,792
Dilutive Securities:
Options and Other Nonvested Stock Awards	987,142			1,383,504			1,223,978			1,344,459			1,382,036			869,934			537,505
Assuming Dilution	299,172,900			324,466,980			306,918,429			330,173,074			327,221,056			332,136,181			341,560,297
Actual Number of Shares Outstanding							292,336,945			317,790,045			316,573,452			331,809,247			331,120,345

2

Unum Group Sales Data by Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011		9/30/2010		% Change		9/30/2011		9/30/2010		% Change		12/31/2010		12/31/2009		12/31/2008
Unum US
Fully Insured Products	$	125.2	$	113.9	9.9	%	$	461.7	$	421.7	9.5	%	$	669.4	$	709.2	$	701.5
Administrative Services Only (ASO) Products	0.4		0.1		N.M.		3.0		1.8		66.7		6.3		7.7		7.2
Total Unum US	125.6		114.0		10.2		464.7		423.5		9.7		675.7		716.9		708.7
Unum UK	21.3		29.6		(28.0	)	62.6		86.6		(27.7	)	119.2		123.2		99.5
Colonial Life	83.2		80.3		3.6		239.5		237.5		0.8		358.8		343.8		340.2
Individual Disability - Closed Block	0.2		0.2		—		0.5		0.6		(16.7	)	0.8		1.5		2.4
Consolidated	$	230.3	$	224.1	2.8		$	767.3	$	748.2	2.6		$	1,154.5	$	1,185.4	$	1,150.8

3

Unum Group Sales Data for Unum US Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011		9/30/2010		% Change		9/30/2011		9/30/2010		% 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	$	22.0	$	21.1	4.3	%	$	89.8	$	80.9	11.0	%	$	148.2	$	182.1	$	190.3
Group Short-term Disability	12.4		11.5		7.8		44.1		42.9		2.8		80.3		83.9		71.5
Group Life	25.2		24.5		2.9		96.9		89.3		8.5		166.9		184.9		165.4
AD&D	2.6		2.6		—		8.9		9.8		(9.2	)	18.1		18.7		17.2
Subtotal	62.2		59.7		4.2		239.7		222.9		7.5		413.5		469.6		444.4
Supplemental and Voluntary
Individual Disability - Recently Issued	12.9		11.6		11.2		40.6		31.5		28.9		42.7		51.6		57.9
Group Long-term Care	7.4		5.7		29.8		22.8		16.3		39.9		25.8		22.4		32.2
Individual Long-term Care	—		—		—		—		0.1		(100.0	)	0.2		3.7		8.4
Voluntary Benefits	42.7		36.9		15.7		158.6		150.9		5.1		187.2		161.9		158.6
Subtotal	63.0		54.2		16.2		222.0		198.8		11.7		255.9		239.6		257.1
Total Fully Insured Products	125.2		113.9		9.9		461.7		421.7		9.5		669.4		709.2		701.5
ASO Products	0.4		0.1		N.M.		3.0		1.8		66.7		6.3		7.7		7.2
Total Sales	$	125.6	$	114.0	10.2		$	464.7	$	423.5	9.7		$	675.7	$	716.9	$	708.7
Sales by Market Sector
Group Disability, Group Life, and AD&D
Core Market (< 2,000 lives)	$	50.0	$	44.5	12.4	%	$	177.3	$	162.2	9.3	%	$	294.0	$	320.6	$	297.2
Large Case Market	12.2		15.2		(19.7	)	62.4		60.7		2.8		119.5		149.0		147.2
Subtotal	62.2		59.7		4.2		239.7		222.9		7.5		413.5		469.6		444.4
Supplemental and Voluntary	63.0		54.2		16.2		222.0		198.8		11.7		255.9		239.6		257.1
Total Fully Insured Products	125.2		113.9		9.9		461.7		421.7		9.5		669.4		709.2		701.5
ASO Products	0.4		0.1		N.M.		3.0		1.8		66.7		6.3		7.7		7.2
Total Sales	$	125.6	$	114.0	10.2		$	464.7	$	423.5	9.7		$	675.7	$	716.9	$	708.7

3. 1

Unum Group Sales Data for Unum UK Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011		9/30/2010		% Change		9/30/2011		9/30/2010		% Change		12/31/2010		12/31/2009		12/31/2008
Group Long-term Disability	$	9.9	$	13.6	(27.2	)%	$	30.7	$	39.0	(21.3	)%	$	53.1	$	56.8	$	68.8
Group Life	9.0		14.0		(35.7	)	25.5		41.0		(37.8	)	57.3		53.8		19.6
Supplemental and Voluntary	2.4		2.0		20.0		6.4		6.6		(3.0	)	8.8		12.6		11.1
Total Sales	$	21.3	$	29.6	(28.0	)	$	62.6	$	86.6	(27.7	)	$	119.2	$	123.2	$	99.5
(in millions of pounds)
Group Long-term Disability	£	6.1	£	8.8	(30.7	)%	£	19.0	£	25.5	(25.5	)%	£	34.4	£	36.5	£	37.6
Group Life	5.7		9.0		(36.7	)	15.8		26.7		(40.8	)	37.1		33.4		10.9
Supplemental and Voluntary	1.5		1.3		15.4		4.0		4.3		(7.0	)	5.7		8.0		6.0
Total Sales	£	13.3	£	19.1	(30.4	)	£	38.8	£	56.5	(31.3	)	£	77.2	£	77.9	£	54.5

Unum Group Sales Data for Colonial Life Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011		9/30/2010		% Change		9/30/2011		9/30/2010		% Change		12/31/2010		12/31/2009		12/31/2008
Accident, Sickness, and Disability	$	55.9	$	53.6	4.3	%	$	161.5	$	158.4	2.0	%	$	237.4	$	221.1	$	222.1
Life	14.4		14.7		(2.0	)	42.7		44.8		(4.7	)	65.7		68.3		64.0
Cancer and Critical Illness	12.9		12.0		7.5		35.3		34.3		2.9		55.7		54.4		54.1
Total Sales	$	83.2	$	80.3	3.6		$	239.5	$	237.5	0.8		$	358.8	$	343.8	$	340.2

3. 2

Unum Group Consolidated Balance Sheets

	September 30,			December 31,
	2011			2010			2009
Assets
Investments
Fixed Maturity Securities - at fair value	$	42,434.7		$	40,035.6		$	37,914.4
Mortgage Loans	1,606.9			1,516.8			1,404.0
Policy Loans	3,075.1			2,996.1			2,878.0
Other Long-term Investments	611.1			529.3			233.5
Short-term Investments	1,035.9			1,163.1			865.5
Total Investments	48,763.7			46,240.9			43,295.4
Cash and Bank Deposits	52.2			53.6			71.6
Accounts and Premiums Receivable	1,680.4			1,665.8			1,732.4
Reinsurance Recoverable	4,923.1			4,827.9			4,996.9
Accrued Investment Income	695.5			669.8			642.5
Deferred Acquisition Costs	2,572.4			2,521.1			2,482.5
Goodwill	201.2			201.2			201.6
Property and Equipment	492.1			476.8			443.5
Other Assets	660.3			650.6			610.6
Total Assets	$	60,040.9		$	57,307.7		$	54,477.0
Liabilities
Policy and Contract Benefits	$	1,517.5		$	1,565.0		$	1,736.9
Reserves for Future Policy and Contract Benefits	41,633.4			39,715.0			37,740.8
Unearned Premiums	493.5			436.7			452.0
Other Policyholders’ Funds	1,603.5			1,669.7			1,662.3
Income Tax Payable	82.6			135.7			114.5
Deferred Income Tax	795.3			417.2			273.2
Short-term Debt	342.4			225.1			—
Long-term Debt - Non-recourse	650.0			716.9			785.2
Long-term Debt - All Other	1,936.5			1,914.4			1,764.4
Other Liabilities	1,526.1			1,567.6			1,447.6
Total Liabilities	50,580.8			48,363.3			45,976.9
Stockholders’ Equity
Common Stock	35.8			36.5			36.4
Additional Paid-in Capital	2,580.9			2,615.4			2,587.4
Accumulated Other Comprehensive Income (Loss)
Net Unrealized Gain on Securities	885.6			410.4			379.6
Net Gain on Cash Flow Hedges	421.1			361.0			370.8
Foreign Currency Translation Adjustment	(116.9		)	(110.9		)	(78.7		)
Unrecognized Pension and Postretirement Benefit Costs	(303.6		)	(318.6		)	(330.7		)
Retained Earnings	7,487.3			7,060.8			6,289.5
Treasury Stock	(1,530.1		)	(1,110.2		)	(754.2		)
Total Stockholders’ Equity	9,460.1			8,944.4			8,500.1
Total Liabilities and Stockholders’ Equity	$	60,040.9		$	57,307.7		$	54,477.0

4

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	261.0			21.2			189.9			472.1
Amortized	(239.1		)	(22.0		)	(139.3		)	(400.4		)
Adjustment Related to Unrealized Investment Gains/Losses	(3.9		)	—			(16.5		)	(20.4		)
Balances at September 30, 2011	$	1,675.9		$	57.4		$	839.1		$	2,572.4

4. 1

Unum Group Balance Sheets by Segment - September 30, 2011

	Unum US
	Group Disability		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Individual Disability - Closed Block		Corporate and Other			Consolidated
Assets
Investments	$	10,178.4	$	2,327.9	$	11,357.7	$	23,864.0	$	3,263.8	$	2,261.0	$	12,924.6	$	6,450.3		$	48,763.7
Deferred Acquisition Costs	119.0		100.1		1,456.8		1,675.9		57.4		839.1		—		—			2,572.4
Goodwill	2.5		—		187.5		190.0		11.2		—		—		—			201.2
All Other	585.1		190.7		196.0		971.8		235.9		194.6		3,184.8		3,916.5			8,503.6
Total Assets	$	10,885.0	$	2,618.7	$	13,198.0	$	26,701.7	$	3,568.3	$	3,294.7	$	16,109.4	$	10,366.8		$	60,040.9
Liabilities
Reserves and Policyholder Benefits	$	8,834.0	$	1,653.3	$	9,111.9	$	19,599.2	$	2,478.4	$	1,736.5	$	14,012.3	$	7,421.5		$	45,247.9
Debt	79.3		—		35.6		114.9		—		—		575.0		2,239.0			2,928.9
All Other	295.0		33.5		667.1		995.6		105.3		318.3		144.5		840.3			2,404.0
Total Liabilities	9,208.3		1,686.8		9,814.6		20,709.7		2,583.7		2,054.8		14,731.8		10,500.8			50,580.8
Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,577.8		901.5		2,834.7		5,314.0		817.4		1,130.0		1,293.9		(401.9		)	8,153.4
Net Unrealized Gain/Loss on Securities and Net Gain on Cash Flow Hedges	98.9		30.4		548.7		678.0		167.2		109.9		83.7		267.9			1,306.7
Total Allocated Stockholders' Equity	1,676.7		931.9		3,383.4		5,992.0		984.6		1,239.9		1,377.6		(134.0		)	9,460.1
Total Liabilities and Allocated Stockholders' Equity	$	10,885.0	$	2,618.7	$	13,198.0	$	26,701.7	$	3,568.3	$	3,294.7	$	16,109.4	$	10,366.8		$	60,040.9

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 Disability		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial Life		Individual Disability - Closed Block		Corporate 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
Allocated Stockholders' Equity
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

4. 3

Unum Group Financial Results by Segment

	Three Months Ended							Nine Months Ended
	9/30/2011			9/30/2010		% Change		9/30/2011			9/30/2010		% Change
Premium Income
Unum US	$	1,226.5		$	1,210.6	1.3	%	$	3,666.5		$	3,643.2	0.6	%
Unum UK	175.5			161.4		8.7		518.4			480.1		8.0
Colonial Life	283.7			269.3		5.3		846.1			802.1		5.5
Individual Disability - Closed Block	196.4			208.5		(5.8	)	595.0			635.0		(6.3	)
Corporate and Other	(0.9		)	0.4		N.M.		(0.3		)	2.8		(110.7	)
	1,881.2			1,850.2		1.7		5,625.7			5,563.2		1.1
Net Investment Income
Unum US	332.4			312.9		6.2		983.1			936.2		5.0
Unum UK	43.3			39.0		11.0		139.3			121.9		14.3
Colonial Life	32.5			31.9		1.9		99.6			91.1		9.3
Individual Disability - Closed Block	181.9			185.5		(1.9	)	544.2			563.5		(3.4	)
Corporate and Other	39.1			49.1		(20.4	)	118.8			148.5		(20.0	)
	629.2			618.4		1.7		1,885.0			1,861.2		1.3
Other Income
Unum US	30.4			29.7		2.4		91.1			90.6		0.6
Unum UK	—			0.2		(100.0	)	0.1			1.1		(90.9	)
Colonial Life	0.1			0.2		(50.0	)	0.4			0.5		(20.0	)
Individual Disability - Closed Block	23.6			22.7		4.0		67.9			67.3		0.9
Corporate and Other	5.0			5.4		(7.4	)	15.3			19.0		(19.5	)
	59.1			58.2		1.5		174.8			178.5		(2.1	)
Total Operating Revenue
Unum US	1,589.3			1,553.2		2.3		4,740.7			4,670.0		1.5
Unum UK	218.8			200.6		9.1		657.8			603.1		9.1
Colonial Life	316.3			301.4		4.9		946.1			893.7		5.9
Individual Disability - Closed Block	401.9			416.7		(3.6	)	1,207.1			1,265.8		(4.6	)
Corporate and Other	43.2			54.9		(21.3	)	133.8			170.3		(21.4	)
	2,569.5			2,526.8		1.7		7,685.5			7,602.9		1.1

5

Unum Group Financial Results by Segment

	Three Months Ended								Nine Months Ended
	9/30/2011			9/30/2010			% Change		9/30/2011			9/30/2010			% Change
Benefits and Expenses
Unum US	$	1,369.8		$	1,348.5		1.6	%	$	4,094.0		$	4,050.1		1.1	%
Unum UK	183.9			153.4			19.9		519.5			442.4			17.4
Colonial Life	246.0			226.9			8.4		731.6			672.3			8.8
Individual Disability - Closed Block	387.9			406.9			(4.7	)	1,172.8			1,231.9			(4.8	)
Corporate and Other	64.7			65.7			(1.5	)	193.8			207.6			(6.6	)
	2,252.3			2,201.4			2.3		6,711.7			6,604.3			1.6
Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss)
Unum US	219.5			204.7			7.2		646.7			619.9			4.3
Unum UK	34.9			47.2			(26.1	)	138.3			160.7			(13.9	)
Colonial Life	70.3			74.5			(5.6	)	214.5			221.4			(3.1	)
Individual Disability - Closed Block	14.0			9.8			42.9		34.3			33.9			1.2
Corporate and Other	(21.5		)	(10.8		)	(99.1	)	(60.0		)	(37.3		)	(60.9	)
	317.2			325.4			(2.5	)	973.8			998.6			(2.5	)
Income Tax	95.7			105.5			(9.3	)	304.6			336.8			(9.6	)
Income Before Net Realized Investment Gain (Loss)	221.5			219.9			0.7		669.2			661.8			1.1
Net Realized Investment Gain (Loss)	(23.9		)	1.1			N.M.		(12.3		)	(2.8		)	N.M.
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)	(8.0		)	0.2			N.M.		(3.9		)	(1.3		)	200.0
Net Income	$	205.6		$	220.8		(6.9	)	$	660.8		$	660.3		0.1

5. 1

Unum Group Quarterly Historical Financial Results by Segment

	9/30/11			6/30/11		3/31/11		12/31/10		9/30/10		6/30/10		3/31/10		12/31/09		9/30/09
Premium Income
Unum US	$	1,226.5		$	1,220.6	$	1,219.4	$	1,211.4	$	1,210.6	$	1,216.5	$	1,216.1	$	1,207.9	$	1,215.2
Unum UK	175.5			175.8		167.1		170.5		161.4		152.9		165.8		180.0		169.7
Colonial Life	283.7			282.0		280.4		273.6		269.3		267.7		265.1		257.4		253.5
Individual Disability - Closed Block	196.4			196.3		202.3		212.0		208.5		212.5		214.0		219.4		221.5
Corporate and Other	(0.9		)	0.3		0.3		0.7		0.4		0.2		2.2		1.0		1.2
	1,881.2			1,875.0		1,869.5		1,868.2		1,850.2		1,849.8		1,863.2		1,865.7		1,861.1
Net Investment Income
Unum US	332.4			329.1		321.6		327.6		312.9		318.7		304.6		302.3		302.8
Unum UK	43.3			51.1		44.9		48.6		39.0		43.1		39.8		40.8		22.5
Colonial Life	32.5			35.8		31.3		31.4		31.9		29.3		29.9		28.9		29.4
Individual Disability - Closed Block	181.9			180.3		182.0		182.9		185.5		187.3		190.7		182.4		184.4
Corporate and Other	39.1			40.8		38.9		43.8		49.1		51.4		48.0		41.3		40.5
	629.2			637.1		618.7		634.3		618.4		629.8		613.0		595.7		579.6
Other Income
Unum US	30.4			29.7		31.0		32.7		29.7		30.4		30.5		28.3		28.8
Unum UK	—			—		0.1		0.1		0.2		0.4		0.5		0.6		0.6
Colonial Life	0.1			0.2		0.1		0.2		0.2		0.1		0.2		0.1		0.1
Individual Disability - Closed Block	23.6			21.7		22.6		23.4		22.7		23.1		21.5		23.8		24.3
Corporate and Other	5.0			4.4		5.9		6.7		5.4		6.5		7.1		8.3		8.1
	59.1			56.0		59.7		63.1		58.2		60.5		59.8		61.1		61.9
Total Operating Revenue
Unum US	1,589.3			1,579.4		1,572.0		1,571.7		1,553.2		1,565.6		1,551.2		1,538.5		1,546.8
Unum UK	218.8			226.9		212.1		219.2		200.6		196.4		206.1		221.4		192.8
Colonial Life	316.3			318.0		311.8		305.2		301.4		297.1		295.2		286.4		283.0
Individual Disability - Closed Block	401.9			398.3		406.9		418.3		416.7		422.9		426.2		425.6		430.2
Corporate and Other	43.2			45.5		45.1		51.2		54.9		58.1		57.3		50.6		49.8
	2,569.5			2,568.1		2,547.9		2,565.6		2,526.8		2,540.1		2,536.0		2,522.5		2,502.6

6

Unum Group Quarterly Historical Financial Results by Segment

	9/30/11			6/30/11			3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Benefits and Expenses
Unum US	$	1,369.8		$	1,361.3		$	1,362.9		$	1,365.6		$	1,348.5		$	1,349.6		$	1,352.0		$	1,335.5		$	1,349.7
Unum UK	183.9			172.2			163.4			171.1			153.4			143.5			145.5			160.1			134.1
Colonial Life	246.0			242.8			242.8			244.4			226.9			223.2			222.2			218.1			212.6
Individual Disability - Closed Block	387.9			387.9			397.0			408.0			406.9			410.5			414.5			419.8			423.0
Corporate and Other	64.7			62.3			66.8			68.5			65.7			75.7			66.2			67.2			63.5
	2,252.3			2,226.5			2,232.9			2,257.6			2,201.4			2,202.5			2,200.4			2,200.7			2,182.9
Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss)
Unum US	219.5			218.1			209.1			206.1			204.7			216.0			199.2			203.0			197.1
Unum UK	34.9			54.7			48.7			48.1			47.2			52.9			60.6			61.3			58.7
Colonial Life	70.3			75.2			69.0			60.8			74.5			73.9			73.0			68.3			70.4
Individual Disability - Closed Block	14.0			10.4			9.9			10.3			9.8			12.4			11.7			5.8			7.2
Corporate and Other	(21.5		)	(16.8		)	(21.7		)	(17.3		)	(10.8		)	(17.6		)	(8.9		)	(16.6		)	(13.7		)
	317.2			341.6			315.0			308.0			325.4			337.6			335.6			321.8			319.7
Income Tax	95.7			109.6			99.3			99.4			105.5			109.0			122.3			103.5			108.1
Income Before Net Realized Investment Gain (Loss)	221.5			232.0			215.7			208.6			219.9			228.6			213.3			218.3			211.6
Net Realized Investment Gain (Loss)	(23.9		)	(3.6		)	15.2			27.5			1.1			(29.5		)	25.6			(25.9		)	14.9
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)	(8.0		)	(1.4		)	5.5			10.3			0.2			(10.6		)	9.1			(7.0		)	5.4
Net Income	$	205.6		$	229.8		$	225.4		$	225.8		$	220.8		$	209.7		$	229.8		$	199.4		$	221.1
Net Income Per Common Share - Assuming Dilution	$	0.69		$	0.75		$	0.72		$	0.71		$	0.68		$	0.63		$	0.69		$	0.60		$	0.66

6. 1

Unum Group Financial Results for Unum US Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	1,226.5		$	1,210.6		$	3,666.5		$	3,643.2		$	4,854.6		$	4,873.1		$	4,963.0
Net Investment Income	332.4			312.9			983.1			936.2			1,263.8			1,200.5			1,136.4
Other Income	30.4			29.7			91.1			90.6			123.3			118.7			132.7
Total	1,589.3			1,553.2			4,740.7			4,670.0			6,241.7			6,192.3			6,232.1
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	982.9			962.9			2,911.3			2,882.2			3,849.4			3,855.9			3,998.4
Commissions	136.1			129.6			409.8			396.4			525.6			516.6			518.6
Interest and Debt Expense	0.3			0.3			0.8			0.9			1.2			2.0			4.2
Deferral of Acquisition Costs	(85.4		)	(81.7		)	(261.0		)	(252.9		)	(333.0		)	(335.5		)	(329.7		)
Amortization of Deferred Acquisition Costs	73.4			80.2			239.1			249.5			332.9			317.2			320.3
Other Expenses	262.5			257.2			794.0			774.0			1,039.6			1,061.1			1,036.2
Total	1,369.8			1,348.5			4,094.0			4,050.1			5,415.7			5,417.3			5,548.0
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	219.5		$	204.7		$	646.7		$	619.9		$	826.0		$	775.0		$	684.1
Operating Ratios (% of Premium Income):
Benefit Ratio	80.1		%	79.5		%	79.4		%	79.1		%	79.3 %			79.1 %			80.6 %
Other Expense Ratio	21.4		%	21.2		%	21.7		%	21.2		%	21.4 %			21.8 %			20.9 %
Before-tax Operating Income Ratio	17.9		%	16.9		%	17.6		%	17.0		%	17.0 %			15.9 %			13.8 %

7

Unum Group Financial Results for Unum US Group Disability

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	$	393.7		$	404.9		$	1,185.3		$	1,233.6		$	1,639.4		$	1,726.9		$	1,838.5
Group Short-term Disability	115.2			108.7			339.0			322.5			430.9			432.8			435.1
Total Premium Income	508.9			513.6			1,524.3			1,556.1			2,070.3			2,159.7			2,273.6
Net Investment Income	153.0			150.2			454.2			457.4			614.6			629.4			631.3
Other Income	23.1			21.5			67.1			64.8			86.7			88.9			100.2
Total	685.0			685.3			2,045.6			2,078.3			2,771.6			2,878.0			3,005.1
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	435.0			434.7			1,289.4			1,314.6			1,747.8			1,862.8			2,043.9
Commissions	39.9			38.5			120.2			119.2			159.7			162.2			165.9
Interest and Debt Expense	0.3			0.3			0.8			0.9			1.2			2.0			4.2
Deferral of Acquisition Costs	(14.7		)	(14.2		)	(44.9		)	(45.2		)	(59.0		)	(62.5		)	(59.4		)
Amortization of Deferred Acquisition Costs	15.0			15.5			44.9			48.2			63.5			67.3			76.7
Other Expenses	137.4			132.7			411.1			402.9			543.7			572.6			572.4
Total	612.9			607.5			1,821.5			1,840.6			2,456.9			2,604.4			2,803.7
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	72.1		$	77.8		$	224.1		$	237.7		$	314.7		$	273.6		$	201.4
Operating Ratios (% of Premium Income):
Benefit Ratio	85.5		%	84.6		%	84.6		%	84.5		%	84.4 %			86.3 %			89.9 %
Other Expense Ratio	27.0		%	25.8		%	27.0		%	25.9		%	26.3 %			26.5 %			25.2 %
Before-tax Operating Income Ratio	14.2		%	15.1		%	14.7		%	15.3		%	15.2 %			12.7 %			8.9 %
Premium Persistency:
Group Long-term Disability							90.1		%	90.2		%	89.4 %			86.9 %			87.8 %
Group Short-term Disability							90.2		%	89.1		%	88.6 %			86.8 %			82.1 %
Case Persistency:
Group Long-term Disability							88.7		%	88.4		%	88.4 %			87.4 %			89.2 %
Group Short-term Disability							87.8		%	87.2		%	87.3 %			86.5 %			88.2 %

7. 1

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

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Life	$	277.6		$	273.0		$	825.3		$	814.5		$	1,090.3		$	1,057.7		$	1,062.8
Accidental Death & Dismemberment	27.7			27.0			81.6			79.3			106.1			104.9			127.6
Total Premium Income	305.3			300.0			906.9			893.8			1,196.4			1,162.6			1,190.4
Net Investment Income	33.7			32.5			101.6			95.8			129.6			126.5			126.0
Other Income	0.5			0.6			1.7			1.8			2.4			1.9			2.3
Total	339.5			333.1			1,010.2			991.4			1,328.4			1,291.0			1,318.7
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	214.3			211.3			636.1			627.2			839.9			815.5			827.6
Commissions	24.2			22.2			71.1			65.9			89.3			85.4			85.4
Deferral of Acquisition Costs	(12.5		)	(12.4		)	(38.6		)	(37.6		)	(49.3		)	(48.1		)	(40.3		)
Amortization of Deferred Acquisition Costs	10.8			10.1			32.3			33.1			43.3			45.9			55.0
Other Expenses	49.6			49.1			150.2			147.3			196.5			197.6			180.1
Total	286.4			280.3			851.1			835.9			1,119.7			1,096.3			1,107.8
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	53.1		$	52.8		$	159.1		$	155.5		$	208.7		$	194.7		$	210.9
Operating Ratios (% of Premium Income):
Benefit Ratio	70.2		%	70.4		%	70.1		%	70.2		%	70.2 %			70.1 %			69.5 %
Other Expense Ratio	16.2		%	16.4		%	16.6		%	16.5		%	16.4 %			17.0 %			15.1 %
Before-tax Operating Income Ratio	17.4		%	17.6		%	17.5		%	17.4		%	17.4 %			16.7 %			17.7 %
Premium Persistency:
Group Life							87.7		%	91.8		%	91.5 %			86.9 %			83.8 %
Accidental Death & Dismemberment							87.8		%	90.9		%	90.7 %			88.1 %			86.4 %
Case Persistency:
Group Life							88.5		%	88.3		%	88.3 %			87.2 %			89.1 %
Accidental Death & Dismemberment							88.5		%	88.4		%	88.4 %			87.2 %			89.2 %

7. 2

Unum Group Financial Results for Unum US Supplemental and Voluntary

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Individual Disability - Recently Issued	$	116.6		$	116.7		$	348.3		$	349.5		$	457.9		$	463.7		$	471.5
Long-term Care	152.1			149.4			453.5			448.1			599.2			594.7			580.7
Voluntary Benefits	143.6			130.9			433.5			395.7			530.8			492.4			446.8
Total Premium Income	412.3			397.0			1,235.3			1,193.3			1,587.9			1,550.8			1,499.0
Net Investment Income	145.7			130.2			427.3			383.0			519.6			444.6			379.1
Other Income	6.8			7.6			22.3			24.0			34.2			27.9			30.2
Total	564.8			534.8			1,684.9			1,600.3			2,141.7			2,023.3			1,908.3
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	333.6			316.9			985.8			940.4			1,261.7			1,177.6			1,126.9
Commissions	72.0			68.9			218.5			211.3			276.6			269.0			267.3
Deferral of Acquisition Costs	(58.2		)	(55.1		)	(177.5		)	(170.1		)	(224.7		)	(224.9		)	(230.0		)
Amortization of Deferred Acquisition Costs	47.6			54.6			161.9			168.2			226.1			204.0			188.6
Other Expenses	75.5			75.4			232.7			223.8			299.4			290.9			283.7
Total	470.5			460.7			1,421.4			1,373.6			1,839.1			1,716.6			1,636.5
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	94.3		$	74.1		$	263.5		$	226.7		$	302.6		$	306.7		$	271.8
Operating Ratios (% of Premium Income):
Benefit Ratios
Individual Disability - Recently Issued	52.1		%	54.3		%	52.1		%	52.8		%	53.3 %			51.4 %			53.3 %
Long-term Care	131.9		%	121.8		%	129.1		%	119.6		%	121.0 %			111.6 %			106.1 %
Voluntary Benefits	50.3		%	54.6		%	50.5		%	55.6		%	55.1 %			56.0 %			58.0 %
Other Expense Ratio	18.3		%	19.0		%	18.8		%	18.8		%	18.9 %			18.8 %			18.9 %
Before-tax Operating Income Ratio	22.9		%	18.7		%	21.3		%	19.0		%	19.1 %			19.8 %			18.1 %
Interest Adjusted Loss Ratios:
Individual Disability - Recently Issued	30.7		%	33.8		%	30.8		%	32.4		%	32.5 %			32.5 %			35.9 %
Long-term Care	86.0		%	80.9		%	84.4		%	80.1		%	80.8 %			76.5 %			75.5 %
Premium Persistency:
Individual Disability - Recently Issued							89.8		%	90.4		%	90.7 %			89.6 %			90.7 %
Long-term Care							95.7		%	95.5		%	95.8 %			95.1 %			95.5 %
Voluntary Benefits							79.6		%	80.6		%	80.1 %			79.9 %			80.4 %

7. 3

Unum Group Financial Results for Unum UK Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	$	107.3		$	101.8		$	318.3		$	310.7		$	421.2		$	482.4		$	656.3
Group Life	52.1			44.5			151.6			126.8			171.6			147.8			174.6
Supplemental and Voluntary	16.1			15.1			48.5			42.6			57.8			55.9			58.4
Total Premium Income	175.5			161.4			518.4			480.1			650.6			686.1			889.3
Net Investment Income	43.3			39.0			139.3			121.9			170.5			124.5			181.9
Other Income	—			0.2			0.1			1.1			1.2			2.4			2.0
Total	218.8			200.6			657.8			603.1			822.3			813.0			1,073.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	138.3			108.0			376.8			313.5			435.8			373.6			511.4
Commissions	11.0			11.7			33.3			31.9			44.1			46.7			59.0
Deferral of Acquisition Costs	(7.3		)	(6.7		)	(21.2		)	(20.5		)	(28.3		)	(29.1		)	(37.4		)
Amortization of Deferred Acquisition Costs	7.4			6.9			22.0			20.3			27.0			30.5			32.4
Other Expenses	34.5			33.5			108.6			97.2			134.9			141.7			183.8
Total	183.9			153.4			519.5			442.4			613.5			563.4			749.2
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	34.9		$	47.2		$	138.3		$	160.7		$	208.8		$	249.6		$	324.0
Operating Ratios (% of Premium Income):
Benefit Ratio	78.8		%	66.9		%	72.7		%	65.3		%	67.0		%	54.5		%	57.5		%
Other Expense Ratio	19.7		%	20.8		%	20.9		%	20.2		%	20.7		%	20.7		%	20.7		%
Before-tax Operating Income Ratio	19.9		%	29.2		%	26.7		%	33.5		%	32.1		%	36.4		%	36.4		%
Persistency:
Group Long-term Disability							87.1		%	91.2		%	91.3		%	88.5		%	87.4		%
Group Life							88.7		%	92.5		%	92.7		%	80.1		%	74.9		%
Supplemental and Voluntary							87.8		%	88.7		%	88.9		%	88.2		%	87.7		%

8

Unum Group Financial Results for Unum UK Segment - Continued

(in millions of pounds, except exchange rate)	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Group Long-term Disability	£	66.6		£	65.7		£	197.1		£	202.4		£	272.3		£	309.0		£	353.7
Group Life	32.4			28.7			93.9			82.6			110.9			94.1			93.3
Supplemental and Voluntary	10.1			9.7			30.1			27.7			37.4			35.6			31.6
Total Premium Income	109.1			104.1			321.1			312.7			420.6			438.7			478.6
Net Investment Income	26.9			25.2			86.2			79.5			110.2			79.6			98.5
Other Income	—			—			0.1			0.7			0.9			1.6			1.2
Total	136.0			129.3			407.4			392.9			531.7			519.9			578.3
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	85.8			69.7			233.3			204.1			281.4			238.3			275.8
Commissions	6.8			7.6			20.6			20.8			28.5			29.8			31.9
Deferral of Acquisition Costs	(4.6		)	(4.3		)	(13.2		)	(13.4		)	(18.3		)	(18.5		)	(20.1		)
Amortization of Deferred Acquisition Costs	4.6			4.4			13.7			13.2			17.4			19.5			17.9
Other Expenses	21.7			21.5			67.4			63.4			87.4			90.2			99.6
Total	114.3			98.9			321.8			288.1			396.4			359.3			405.1
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	£	21.7		£	30.4		£	85.6		£	104.8		£	135.3		£	160.6		£	173.2
Weighted Average Pound/Dollar Exchange Rate	1.608			1.553			1.616			1.533			1.543			1.554			1.871

8. 1

Unum Group Financial Results for Colonial Life Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	174.3		$	166.1		$	519.7		$	493.1		$	661.0		$	625.8		$	606.9
Life	47.0			43.4			140.0			131.0			176.5			165.6			157.4
Cancer and Critical Illness	62.4			59.8			186.4			178.0			238.2			223.7			213.0
Total Premium Income	283.7			269.3			846.1			802.1			1,075.7			1,015.1			977.3
Net Investment Income	32.5			31.9			99.6			91.1			122.5			114.3			105.7
Other Income	0.1			0.2			0.4			0.5			0.7			0.5			0.4
Total	316.3			301.4			946.1			893.7			1,198.9			1,129.9			1,083.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	149.1			134.3			437.5			388.5			534.7			480.6			464.0
Commissions	61.8			59.5			183.5			171.7			232.6			215.3			211.8
Deferral of Acquisition Costs	(62.9		)	(62.5		)	(189.9		)	(182.1		)	(246.4		)	(229.0		)	(223.8		)
Amortization of Deferred Acquisition Costs	44.4			43.5			139.3			137.9			187.2			178.5			166.4
Other Expenses	53.6			52.1			161.2			156.3			208.6			203.6			196.9
Total	246.0			226.9			731.6			672.3			916.7			849.0			815.3
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	70.3		$	74.5		$	214.5		$	221.4		$	282.2		$	280.9		$	268.1
Operating Ratios (% of Premium Income):
Benefit Ratio	52.6		%	49.9		%	51.7		%	48.4		%	49.7		%	47.3		%	47.5		%
Other Expense Ratio	18.9		%	19.3		%	19.1		%	19.5		%	19.4		%	20.1		%	20.1		%
Before-tax Operating Income Ratio	24.8		%	27.7		%	25.4		%	27.6		%	26.2		%	27.7		%	27.4		%
Persistency:
Accident, Sickness, and Disability							73.7		%	76.4		%	75.9		%	74.4		%	75.8		%
Life							85.3		%	85.8		%	86.0		%	84.7		%	84.7		%
Cancer and Critical Illness							84.0		%	85.0		%	84.9		%	83.8		%	84.0		%

9

Unum Group Financial Results for Individual Disability - Closed Block Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	196.4		$	208.5		$	595.0		$	635.0		$	847.0		$	898.5		$	952.3
Net Investment Income	181.9			185.5			544.2			563.5			746.4			740.6			767.5
Other Income	23.6			22.7			67.9			67.3			90.7			100.8			98.6
Total	401.9			416.7			1,207.1			1,265.8			1,684.1			1,739.9			1,818.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	345.7			360.8			1,043.5			1,090.0			1,451.3			1,489.6			1,544.8
Commissions	11.8			12.8			35.8			39.3			52.0			58.1			62.7
Interest and Debt Expense	2.6			3.1			7.9			8.9			11.7			16.6			35.1
Other Expenses	27.8			30.2			85.6			93.7			124.9			141.3			148.1
Total	387.9			406.9			1,172.8			1,231.9			1,639.9			1,705.6			1,790.7
Operating Income Before Income Tax and Net Realized Investment Gains and Losses	$	14.0		$	9.8		$	34.3		$	33.9		$	44.2		$	34.3		$	27.7
Operating Ratios (% of Premium Income):
Interest Adjusted Loss Ratio	84.9		%	85.5		%	84.6		%	85.1		%	85.0		%	81.6		%	82.2		%
Other Expense Ratio	14.2		%	14.5		%	14.4		%	14.8		%	14.7		%	15.7		%	15.6		%
Before-tax Operating Income Ratio	7.1		%	4.7		%	5.8		%	5.3		%	5.2		%	3.8		%	2.9		%
Premium Persistency							92.6		%	93.5		%	93.0		%	93.2		%	93.8		%

10

Unum Group Financial Results for Corporate and Other Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2011			9/30/2010			9/30/2011			9/30/2010			12/31/2010			12/31/2009			12/31/2008
Operating Revenue
Premium Income	$	(0.9	)	$	0.4		$	(0.3	)	$	2.8		$	3.5		$	2.7		$	1.4
Net Investment Income	39.1			49.1			118.8			148.5			192.3			166.7			197.5
Other Income	5.0			5.4			15.3			19.0			25.7			34.8			42.2
Total	43.2			54.9			133.8			170.3			221.5			204.2			241.1
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	19.6			21.5			58.9			61.8			82.9			91.9			107.8
Commissions	(0.2		)	0.4			0.3			0.8			1.1			0.4			1.2
Interest and Debt Expense	32.2			31.8			99.4			92.9			128.9			106.8			117.4
Other Expenses	13.1			12.0			35.2			52.1			63.2			64.3			28.7
Total	64.7			65.7			193.8			207.6			276.1			263.4			255.1
Operating Loss Before Income Tax and Net Realized Investment Gains and Losses	$	(21.5	)	$	(10.8	)	$	(60.0	)	$	(37.3	)	$	(54.6	)	$	(59.2	)	$	(14.0	)

11

Unum Group Reserves

	September 30, 2011
	Gross												Total
	Policy				Claim Reserves								Reinsurance		Total
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	7,272.1	$	608.8	32.6	%	$	7,880.9	$	64.5	$	7,816.4
Group Life and Accidental Death & Dismemberment	74.3		0.5		776.2		146.4		3.8		996.9		1.2		995.7
Individual Disability - Recently Issued	544.0		3.8		1,051.2		102.9		4.8		1,698.1		91.3		1,606.8
Long-term Care	4,263.0		29.9		419.0		39.6		1.9		4,721.6		47.8		4,673.8
Voluntary Benefits	1,119.7		7.8		40.6		44.3		0.3		1,204.6		26.2		1,178.4
Unum US Segment	6,001.0		42.0		9,559.1		942.0		43.4		16,502.1		231.0		16,271.1
Unum UK Segment	26.7		0.2		2,114.0		123.3		9.3		2,264.0		108.8		2,155.2
Colonial Life Segment	1,379.3		9.7		236.7		85.9		1.3		1,701.9		13.4		1,688.5
Individual Disability - Closed Block Segment	1,143.6		8.0		10,322.6		302.3		43.9		11,768.5		1,478.1		10,290.4
Corporate and Other Segment	5,721.9		40.1		320.3		195.7		2.1		6,237.9		4,871.4		1,366.5
Subtotal, Excluding Unrealized Adjustment	$	14,272.5	100.0	%	$	22,552.7	$	1,649.2	100.0	%	38,474.4		6,702.7		31,771.7
Unrealized Adjustment to Reserves for Unrealized Gain on Securities											4,676.5		313.4		4,363.1
Consolidated											$	43,150.9	$	7,016.1	$	36,134.8

The increase in Unum US Segment Policy Reserves from December 31, 2010 is due primarily to normal growth in the active life reserves for the Unum US Long-term Care line of business.

12

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 September 30, 2011

	9/30/2011						9/30/2011			6/30/2011
Fixed Maturity Securities (Fair Value)						Selected Statistics
Public	$	27,642.2		65.2	%	Duration Weighted Book Yield	6.68		%	6.68		%
Asset-Backed Securities (1)	142.4			0.3		Average Duration (in years)	7.95			7.61
Residential Mortgage-Backed Securities (2)	2,932.1			6.9
Commercial Mortgage-Backed Securities	72.5			0.2
Private Placements	4,575.7			10.8
High Yield	2,658.6			6.3
Government Securities	2,768.3			6.5
Municipal Securities	1,586.4			3.7
Redeemable Preferred Stocks (3)	56.5			0.1
Total	$	42,434.7		100.0	%
	Amortized Cost			Fair Value
Quality Ratings of Fixed Maturity Securities						Schedule BA and Non-Current
Aaa	13.3		%	13.4	%	Total Non-Current Investments	$	51.2		$	62.9
Aa	9.4			9.5		Total Schedule BA Assets	$	413.6		$	425.5
A	29.9			31.0
Baa	39.9			39.7
Below Baa	7.5			6.4
Total	100.0		%	100.0	%
(1) Includes $0.6 million of high yield asset-backed securities.
(2) Includes $37.0 million of high yield mortgage-backed securities.
(3) Includes $6.3 million of high yield preferred stock.

13

Unum Group Investment Fact Sheet at September 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	$	2,261.6	$	183.2		$	378.3	$	27.1	$	1,883.3	$	210.3
Capital Goods	3,679.0		465.1			442.9		48.5		3,236.1		513.6
Communications	2,806.7		372.2			273.2		24.0		2,533.5		396.2
Consumer Cyclical	1,190.0		127.1			161.3		13.3		1,028.7		140.4
Consumer Non-Cyclical	5,381.7		827.6			358.1		18.7		5,023.6		846.3
Energy (Oil & Gas)	3,616.7		596.9			112.6		5.5		3,504.1		602.4
Financial Institutions	3,314.8		84.2			1,080.5		88.7		2,234.3		172.9
Mortgage/Asset-Backed	3,147.0		382.6			116.3		3.9		3,030.7		386.5
Sovereigns	1,474.7		220.4			—		—		1,474.7		220.4
Technology	810.0		111.9			110.9		4.0		699.1		115.9
Transportation	1,315.3		230.5			37.3		1.3		1,278.0		231.8
U.S. Government Agencies and Municipalities	2,880.0		520.7			100.8		4.3		2,779.2		525.0
Utilities	10,500.7		1,564.9			286.5		28.6		10,214.2		1,593.5
Redeemable Preferred Stocks	56.5		0.7			21.1		1.7		35.4		2.4
Total	$	42,434.7	$	5,688.0		$	3,479.8	$	269.6	$	38,954.9	$	5,957.6
Fixed Maturity Securities - Financial Institutions Classification - Unrealized Gain (Loss)
Associations	$	15.6	$	3.5		$	—	$	—	$	15.6	$	3.5
Banking	1,910.6		(3.0		)	803.1		73.7		1,107.5		70.7
Brokerage	154.4		(5.1		)	109.6		7.4		44.8		2.3
Finance Non-Captive	10.5		0.5			—		—		10.5		0.5
Finance Captive	220.3		7.7			26.9		0.9		193.4		8.6
Insurance	668.7		69.1			94.9		5.2		573.8		74.3
Other Financial Institutions	58.8		0.1			16.3		1.2		42.5		1.3
Real Estate Management Services	275.9		11.4			29.7		0.3		246.2		11.7
Total	$	3,314.8	$	84.2		$	1,080.5	$	88.7	$	2,234.3	$	172.9
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	$	1,262.2	$	38.9				$	737.7	$	39.5
91 through 180 days	163.6		14.1					179.3		15.6
181 through 270 days	—		—					15.4		2.3
271 days to 1 year	183.2		24.6					86.3		6.7
Greater than 1 year	539.7		68.4					312.4		59.5
Total	$	2,148.7	$	146.0				$	1,331.1	$	123.6

13. 1

Unum Group Investment Fact Sheet at September 30, 2011

Asset and Mortgage-Backed Securities Portfolio
	Amortized Cost		Fair Value				% of Total Fixed Maturity Securities		Average Rating
Asset-Backed Securities
Credit Cards	$	140.5	$	141.8	4.5	%	0.3	%	AAA
Rate Reduction Bonds	—		—		—		—		—
Home Equity	1.0		0.6		—		—		B
Collateralized Debt Obligations	—		—		—		—		—
Total	141.5		142.4		4.5		0.3		AAA
Residential Mortgage-Backed Securities
Agency CMOs	2,356.6		2,729.6		86.8		6.4		AAA
Agency Pass-throughs	130.6		141.4		4.5		0.3		AAA
Non-agency CMOs - Prime	61.0		61.1		1.9		0.2		BAA2
Alt-A	—		—		—		—		—
Subprime	—		—		—		—		—
Collateralized Debt Obligations	—		—		—		—		—
Total	2,548.2		2,932.1		93.2		6.9		AAA
Commercial Mortgage-Backed Securities
Agency CMBS	74.7		72.5		2.3		0.2		A3
Total	$	2,764.4	$	3,147.0	100.0	%	7.4	%	AAA

13. 2

Unum Group Statutory Capital and Surplus

	As of September 30, 2011						As of December 31, 2010
	Capital and Surplus		AVR		Capital and Surplus + AVR		Capital and Surplus + AVR
Traditional U.S. Life Insurance Companies
Provident Life and Accident	$	650.6	$	80.8	$	731.4	$	732.0
Unum Life of America	1,459.5		226.3		1,685.8		1,741.1
Paul Revere Life (1)	404.0		40.8		444.8		451.6
Colonial Life & Accident	502.4		26.0		528.4		514.2
Provident Life and Casualty	154.4		7.9		162.3		149.5
First Unum Life	270.7		10.6		281.3		248.2
Paul Revere Variable (1)	36.4		0.5		36.9		35.6
(1) Capital and Surplus of Paul Revere Variable is included in Paul Revere Life
Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	66.8	$	0.1	$	66.9	$	81.5
Northwind Reinsurance Company	1,157.0		3.5		1,160.5		1,198.6
UnumProvident International Ltd.	538.7		—		538.7		530.4

14

Unum Group Statutory Operating Results

	Nine Months Ended September 30
	Net Gain (Loss) from Operations After Tax						Net Realized Investment Gains (Losses) After Tax and Transfer to IMR						Net Income (Loss)
Traditional U.S. Life Insurance Companies	2011			2010			2011			2010			2011			2010
Provident Life and Accident	$	125.5		$	101.3		$	(3.4	)	$	(8.8	)	$	122.1		$	92.5
Unum Life of America	153.3			198.2			(21.4		)	(13.6		)	131.9			184.6
Paul Revere Life	52.0			51.2			7.4			(3.0		)	59.4			48.2
Colonial Life & Accident	101.2			107.1			(1.9		)	4.1			99.3			111.2
Provident Life and Casualty	13.7			11.7			(0.6		)	—			13.1			11.7
First Unum Life	33.6			16.0			(0.6		)	2.4			33.0			18.4
Paul Revere Variable	1.9			2.0			—			1.7			1.9			3.7
Total, as reported	481.2			487.5			(20.5		)	(17.2		)	460.7			470.3
Intercompany Dividends	(14.8		)	—			—			—			(14.8		)	—
Total, as adjusted	$	466.4		$	487.5		$	(20.5	)	$	(17.2	)	$	445.9		$	470.3
Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	3.8		$	3.5		$	—		$	—		$	3.8		$	3.5
Northwind Reinsurance Company	59.5			47.2			(0.4		)	(0.1		)	59.1			47.1
UnumProvident International Ltd.	(21.2		)	(9.4		)	9.5			8.4			(11.7		)	(1.0		)
Total	$	42.1		$	41.3		$	9.1		$	8.3		$	51.2		$	49.6
	Three Months Ended September 30
	Net Gain (Loss) from Operations After Tax						Net Realized Investment Gains (Losses) After Tax and Transfer to IMR						Net Income (Loss)
Traditional U.S. Life Insurance Companies	2011			2010			2011			2010			2011			2010
Provident Life and Accident	$	37.1		$	35.8		$	(0.5	)	$	(2.1	)	$	36.6		$	33.7
Unum Life of America	38.0			61.9			(2.6		)	(6.2		)	35.4			55.7
Paul Revere Life	16.9			16.3			(0.8		)	0.1			16.1			16.4
Colonial Life & Accident	33.3			35.3			(0.1		)	(0.2		)	33.2			35.1
Provident Life and Casualty	4.3			1.5			—			—			4.3			1.5
First Unum Life	13.5			5.3			(1.4		)	0.1			12.1			5.4
Paul Revere Variable	0.6			0.7			—			(0.1		)	0.6			0.6
Total, as reported	143.7			156.8			(5.4		)	(8.4		)	138.3			148.4
Intercompany Dividends	(4.9		)	—			—			—			(4.9		)	—
Total, as adjusted	$	138.8		$	156.8		$	(5.4	)	$	(8.4	)	$	133.4		$	148.4
Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	(1.2	)	$	1.6		$	—		$	—		$	(1.2	)	$	1.6
Northwind Reinsurance Company	7.8			14.7			(0.2		)	—			7.6			14.7
UnumProvident International Ltd.	(13.0		)	(8.9		)	4.8			6.4			(8.2		)	(2.5		)
Total	$	(6.4	)	$	7.4		$	4.6		$	6.4		$	(1.8	)	$	13.8
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	$	6,083.9		$	6,168.5		$	6,269.4
Reserves Ceded September 1 for Prior Year Incurrals	(3.9		)	—			—
Paid on Prior Year Claims	(316.4		)	(304.0		)	(307.6		)
Interest Earned on Reserves	98.9			103.1			103.9
Incurred on Prior Year Claims	(49.4		)	(75.1		)	(69.2		)
Reserve Balance September 30	$	5,813.1		$	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 nine month periods ended September 30, 2011, we repurchased an additional 11.1 million and 17.7 million shares on the open market at a cost of $250.2 million and $419.9 million, respectively, including commissions of $0.2 million and $0.3 million. The dollar value of shares remaining under the $1.0 billion repurchase program at September 30, 2011 is $524.7 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.

Income Tax

The income tax rate in the U.K. is expected to be reduced annually, at least one percent per year, beginning in April 2011, with the ultimate goal of reducing the rate from 28 percent to 23 percent. An income tax rate reduction was enacted which reduced the tax rate from 28 percent to 27 percent in the third quarter of 2010, effective April 2011. In the third quarter of 2011, an income tax rate reduction was enacted which reduced the tax rate from 27 percent to 26 percent, retroactive to April 2011, and from 26 percent to 25 percent, effective April 2012.  We are required to adjust deferred tax assets and liabilities through income on the date of enactment of a rate change, and as such, we recorded a reduction of $6.8 million and $2.7 million to our income tax expense during the third quarters of 2011 and 2010, respectively.

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 $59.4 million and $7.5 million on our senior secured non-recourse floating rate notes issued by Northwind Holdings, LLC (Northwind) and Tailwind Holdings, LLC (Tailwind), respectively, during the nine months ended September 30, 2011. At September 30, 2011, short-term debt consisted of $342.4 million of securities lending transactions.

(continued on next page) 15

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

InMay 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.

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.

(continued on next page) 15. 1

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.

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. 2