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Schedule II Condensed Finacial Information of Registrant
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Unum Group (Parent Company)

BALANCE SHEETS

 
December 31
 
2018
 
2017
 
(in millions of dollars)
Assets
 
 
 
Fixed Maturity Securities - at fair value (amortized cost: $139.0; $153.9)
$
135.9

 
$
154.1

Other Long-term Investments
38.8

 
16.8

Short-term Investments
285.2

 
477.8

Investment in Subsidiaries
11,383.6

 
12,157.1

Deferred Income Tax
116.7

 
121.5

Other Assets
446.9

 
455.4

Total Assets
$
12,407.1

 
$
13,382.7

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
Liabilities
 
 
 
Short-term Debt
$
—

 
$
199.9

Long-term Debt
2,831.3

 
2,538.4

Pension and Postretirement Benefits
594.2

 
683.3

Other Liabilities
359.8

 
386.2

Total Liabilities
3,785.3

 
3,807.8

 
 
 
 
Stockholders' Equity
 
 
 
Common Stock
30.5

 
30.5

Additional Paid-in Capital
2,321.7

 
2,303.3

Accumulated Other Comprehensive Income (Loss)
(814.2
)
 
127.5

Retained Earnings
9,863.1

 
9,542.2

Treasury Stock
(2,779.3
)
 
(2,428.6
)
Total Stockholders' Equity
8,621.8

 
9,574.9

 
 
 
 
Total Liabilities and Stockholders' Equity
$
12,407.1

 
$
13,382.7


See notes to condensed financial information.
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

STATEMENTS OF OPERATIONS

 
Year Ended December 31
 
2018
 
2017
 
2016
 
(in millions of dollars)
Cash Dividends from Subsidiaries
$
1,135.4

 
$
830.2

 
$
676.5

Other Income
66.6

 
66.6

 
58.4

Total Revenue
1,202.0

 
896.8

 
734.9

 
 
 
 
 
 
Interest and Debt Expense
161.4

 
154.2

 
160.1

Other Expenses
53.4

 
37.1

 
32.3

Total Expenses
214.8

 
191.3

 
192.4

 
 
 
 
 
 
Income of Parent Company Before Income Tax
987.2

 
705.5

 
542.5

Income Tax Expense (Benefit)
(1.7
)
 
115.3

 
(20.2
)
 
 
 
 
 
 
Income of Parent Company
988.9

 
590.2

 
562.7

Equity in Undistributed Earnings (Loss) of Subsidiaries
(465.5
)
 
404.0

 
368.7

 
 
 
 
 
 
Net Income
523.4

 
994.2

 
931.4

 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(924.2
)
 
178.5

 
(67.1
)
 
 
 
 
 
 
Comprehensive Income (Loss)
$
(400.8
)
 
$
1,172.7

 
$
864.3


See notes to condensed financial information.
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

STATEMENTS OF CASH FLOWS

 
Year Ended December 31
 
2018
 
2017
 
2016
 
(in millions of dollars)
Cash Provided by Operating Activities
$
1,052.1

 
$
740.6

 
$
685.4

 
 
 
 
 
 
Cash Flows from Investing Activities
 
 
 
 
 
Proceeds from Sales of Fixed Maturity Securities
—

 
—

 
2.6

Proceeds from Maturities of Fixed Maturity Securities
52.5

 
194.3

 
111.2

Proceeds from Sales and Maturities of Other Investments
—

 
35.2

 
0.4

Purchase of Fixed Maturity Securities
(47.9
)
 
(121.2
)
 
(56.5
)
Purchase of Other Investments
(22.3
)
 
—

 
(23.3
)
Net Sales (Purchases) of Short-term Investments
192.6

 
(99.9
)
 
(89.8
)
Cash Distributions to Subsidiaries
(530.8
)
 
(79.5
)
 
(143.6
)
Net Purchases of Property and Equipment
(73.2
)
 
(83.3
)
 
(55.5
)
Acquisition of Business
(146.1
)
 
—

 
(140.3
)
Other, Net
—

 
—

 
0.2

Cash Used by Investing Activities
(575.2
)
 
(154.4
)
 
(394.6
)
 
 
 
 
 
 
Cash Flows from Financing Activities
 
 
 
 
 
Short-term Debt Repayment
(200.0
)
 
—

 
—

Issuance of Long-term Debt
290.7

 
—

 
609.1

Long-term Debt Repayment
—

 
—

 
(350.0
)
Issuance of Common Stock
4.6

 
10.8

 
8.5

Repurchase of Common Stock
(356.2
)
 
(401.8
)
 
(405.2
)
Dividends Paid to Stockholders
(215.6
)
 
(196.0
)
 
(182.6
)
Other, Net
(9.3
)
 
0.2

 
(1.0
)
Cash Used by Financing Activities
(485.8
)
 
(586.8
)
 
(321.2
)
 
 
 
 
 
 
Decrease in Cash
$
(8.9
)
 
$
(0.6
)
 
$
(30.4
)

See notes to condensed financial information.
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

NOTES TO CONDENSED FINANCIAL INFORMATION

Note 1 - Basis of Presentation

The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Unum Group and subsidiaries.

Note 2 - Debt

Debt consists of the following:
 
 
 
 
 
December 31
 
 
 
 
 
2018
 
2017
 
Interest Rates
 
Maturities
 
(in millions of dollars)
Long-term Debt
 
 
 
 
 
 
 
Outstanding Principal
 
 
 
 
 
 
 
   Senior Notes issued 1998
6.750 - 7.250%
 
2028
 
$
365.8

 
$
365.8

   Senior Notes issued 2002
7.375%
 
2032
 
39.5

 
39.5

   Senior Notes issued 2010
5.625%
 
2020
 
400.0

 
400.0

   Senior Notes issued 2012 and 2016
5.750%
 
2042
 
500.0

 
500.0

   Senior Notes issued 2014
4.000%
 
2024
 
350.0

 
350.0

   Senior Notes issued 2015
3.875%
 
2025
 
275.0

 
275.0

   Senior Notes issued 2016
3.000%
 
2021
 
350.0

 
350.0

   Medium-term Notes issued 1990 - 1996
7.000 - 7.190%
 
2023 - 2028
 
50.8

 
50.8

   Junior Subordinated Debt Securities issued 1998
7.405%
 
2038
 
226.5

 
226.5

   Junior Subordinated Debt Securities issued 2018
6.250%
 
2058
 
300.0

 
—

Fair Value Hedge Adjustment
 
 
 
 
(5.1
)
 
(4.5
)
Less:
 
 
 
 
 
 
 
Unamortized Net Premium
 
 
 
 
9.6

 
9.7

Unamortized Debt Issuance Costs
 
 
 
 
(30.8
)
 
(24.4
)
Total Long-term Debt
 
 
 
 
2,831.3

 
2,538.4

 
 
 
 
 
 
 
 
Short-term Debt
 
 
 
 
 
 
 
Outstanding Principal
 
 
 
 
 
 
 
   Senior Notes issued 1998
7.000%
 
2018
 
—

 
200.0

Less Unamortized Debt Issuance Costs
 
 
 
 
—

 
(0.1
)
Total Short-term Debt
 
 
 
 
—

 
199.9

 
 
 
 
 
 
 
 
Total Debt
 
 
 
 
$
2,831.3

 
$
2,738.3



The medium-term notes are non-callable. The junior subordinated debt securities are callable under limited, specified circumstances. The remaining debt is callable and may be redeemed, in whole or in part, at any time. The aggregate contractual principal maturities are $400.0 million in 2020, $350.0 million in 2021, $2.0 million in 2023, and $2,105.6 million thereafter.



SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

NOTES TO CONDENSED FINANCIAL INFORMATION - CONTINUED

Unsecured Notes

In July 2018, our $200.0 million 7.00% senior unsecured notes matured.

In September 2016, our $350.0 million 7.125% senior unsecured notes matured.

In May 2016, we issued a total of $600.0 million aggregate principal amount of senior notes: (i) $350.0 million aggregate principal amount of senior notes due in 2021 with an annual coupon rate of 3.00%, and (ii) $250.0 million aggregate principal amount of senior notes due in 2042 with an annual coupon rate of 5.75%, pursuant to a reopening of the $250.0 million aggregate principal amount outstanding of our 5.75% senior notes due 2042 issued in 2012. Both issuances are callable at or above par and rank equally in the right of payment with all of our other unsecured and unsubordinated debt.

Fair Value Hedges

As of December 31, 2018 and 2017, we had $250.0 million notional amount of an interest rate swap which effectively converts certain of our unsecured senior notes into floating rate debt. Under this agreement, we receive a fixed rate of interest and pay a variable rate of interest, based off of the three-month LIBOR.

Junior Subordinated Debt Securities

In May 2018, we issued $300.0 million of 6.25% junior subordinated notes due 2058. The notes are redeemable at or above par on or after June 15, 2023 and rank equally in the right of payment with our other junior subordinated debt securities.

In 1998, Provident Financing Trust I (the trust), a 100 percent-owned finance subsidiary of Unum Group, issued $300.0 million of 7.405% capital securities in a public offering. These capital securities are fully and unconditionally guaranteed by Unum Group, have a liquidation value of $1,000 per capital security, and have a mandatory redemption feature under certain circumstances. Unum Group issued 7.405% junior subordinated deferrable interest debentures to the trust in connection with the capital securities offering. The debentures mature in 2038. The sole assets of the trust are the junior subordinated debt securities.

Interest Paid

Interest paid on debt and related securities during 2018, 2017, and 2016 was $161.4 million, $148.7 million, and $147.8 million, respectively.

Credit Facility

In 2016, we amended the terms of our five-year, $400.0 million unsecured revolving credit facility, which was previously set to expire in 2018, to extend through March 2021. Under the terms of the agreement, we may request that the credit facility be increased up to $600.0 million. Borrowings under the credit facility are for general corporate uses and are subject to financial covenants, negative covenants, and events of default that are customary. The credit facility provides for borrowing at an interest rate based either on the prime rate or LIBOR. In addition, the credit facility provides for the issuance of letters of credit subject to certain terms and limitations. At December 31, 2018 and 2017, letters of credit totaling $2.1 million had been issued from the credit facility, but there were no borrowed amounts outstanding.