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Section 1: 8-K (8-K)

Document


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): May 1, 2018
 
 
 
 
 
 
 
 
 
 
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):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))









Item 2.02
Results of Operations and Financial Condition.
On May 1, 2018, Unum Group issued a news release reporting its results for the first quarter of 2018, 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 May 1, 2018, Unum Group posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the first quarter of 2018. 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 in this report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any of Unum Group's filings under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are furnished (but not filed) with this report:
 
 
99.1
News release of Unum Group dated May 1, 2018, concerning earnings for the first quarter of 2018.
 
 
99.2
Statistical Supplement of Unum Group for the first quarter of 2018.


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)
 
 
 
 
 
 
May 1, 2018
By:
 /s/ J. Paul Jullienne
 
 
Name:
J. Paul Jullienne
 
 
Title:
Vice President, Managing Counsel, and
 
 
 
Corporate Secretary
 
 
 
 







INDEX TO EXHIBITS

Exhibit No.
Description
 
 
 
 



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
393285255_imagea04.jpg
 
Exhibit 99.1
 
1 Fountain Square
 
Chattanooga, TN 37402
 
www.unum.com

 
FOR IMMEDIATE RELEASE
 
 
 
 
news
Contacts
 
 
INVESTORS
Tom White
423 294 8996
 
 
 
 
 
 
MEDIA
Jim Sabourin
423 294 6300
 
 
 
 

Unum Group Reports First Quarter 2018 Results

CHATTANOOGA, Tenn. (May 1, 2018) - Unum Group (NYSE: UNM) today reported net income of $273.5 million ($1.23 per diluted common share) for the first quarter of 2018, compared to net income of $229.9 million ($1.00 per diluted common share) for the first quarter of 2017.
Included in net income are net after-tax realized investment gains and losses on the Company’s investment portfolio. Excluding net after-tax realized investment gains and losses, after-tax adjusted operating income was $275.1 million ($1.24 per diluted common share) in the first quarter of 2018. Net income, for the first quarter of 2017, also included a loss from a guaranty fund assessment related to an unaffiliated insurer that was declared insolvent of $20.6 million before tax and $13.4 million after tax ($0.06 per diluted common share). Excluding net after-tax realized investment gains and losses and the loss from the guaranty fund assessment, after-tax adjusted operating income was $236.1 million ($1.02 per diluted common share) in the first quarter of 2017.
“The first quarter was a solid start to the year, reflecting both a lower tax rate and a corresponding earnings per share growth rate of more than 20 percent. The fundamentals of our business remained strong and our overall performance largely aligned with our expectations, with good premium growth and overall stable benefits experience,” said Richard P. McKenney, president and chief executive officer.  “We continue to look for ways to grow our business both organically and through targeted, strategic acquisitions.”

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


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RESULTS BY SEGMENT
We measure and analyze our segment performance on the basis of "adjusted operating income" or "adjusted operating loss", which differ from income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for income before income tax or net income. 
Unum US Segment    
Unum US reported adjusted operating income of $243.9 million in the first quarter of 2018, an increase of 2.0 percent from $239.1 million in the first quarter of 2017. Premium income for the segment increased 5.8 percent to $1,438.8 million in the first quarter of 2018, compared to premium income of $1,360.4 million in the first quarter of 2017. Net investment income for the segment declined 4.1 percent to $194.2 million in the first quarter of 2018, compared to $202.5 million in the first quarter of 2017.
Within the Unum US operating segment, the group disability line of business reported a 6.4 percent decline in adjusted operating income to $83.0 million in the first quarter of 2018, compared to $88.7 million in the first quarter of 2017. Premium income in group disability increased 4.3 percent to $617.5 million in the first quarter of 2018, compared to $592.3 million in the first quarter of 2017, with growth in the in-force block resulting from prior period sales growth and improved persistency. Net investment income declined by 6.3 percent to $108.2 million in the first quarter of 2018, compared to $115.5 million in the first quarter of 2017, due to a decrease in the level of invested assets, a decline in portfolio yield, and slightly lower miscellaneous investment income. The benefit ratio for the first quarter of 2018 was 75.6 percent, compared to 76.6 percent in the first quarter of 2017, due primarily to favorable claim recovery experience in the group long-term disability product line, partially offset by higher claims incidence in the group short-term disability product line. Group long-term disability sales were $30.1 million in the first quarter of 2018, a decline of 16.4 percent from $36.0 million in the first quarter of 2017. Group short-term disability sales were $16.3 million in the first quarter of 2018, a decline of 3.6 percent from $16.9 million in the first quarter of 2017. Persistency in the group long-term disability line of business was 90.8 percent for the first quarter of 2018, compared to 88.1 percent for the first quarter of 2017. Persistency in the group short-term disability line of business was 86.6 percent for the first quarter of 2018, compared to 85.2 percent for the first quarter of 2017.
The group life and accidental death and dismemberment line of business reported adjusted operating income of $64.6 million in the first quarter of 2018, an increase of 15.4 percent from $56.0 million in the first quarter of 2017. Premium income for this line of business increased 8.3 percent to $437.9 million in the first quarter of 2018, compared to $404.4 million in the first quarter of 2017, primarily due to sales growth and overall favorable persistency. Net investment income declined 2.9 percent to $26.8 million in the first quarter of 2018, compared to $27.6 million in the first quarter of 2017, primarily due to a decline in yield, partially offset by an increase in the level of invested assets and higher miscellaneous investment income. The benefit ratio in the first quarter of 2018 was 70.7 percent, compared to 71.9 percent in the first quarter of 2017, driven primarily

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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by favorable waiver of premium experience in the group life product line. Sales of group life and accidental death and dismemberment products increased 19.9 percent in the first quarter of 2018 to $44.6 million, compared to $37.2 million in the first quarter of 2017. Persistency in the group life line of business was 89.3 percent for the first quarter of 2018, compared to 87.4 percent for the first quarter of 2017.
The supplemental and voluntary line of business reported an increase of 2.0 percent in adjusted operating income to $96.3 million in the first quarter of 2018, compared to $94.4 million in the first quarter of 2017. Premium income for supplemental and voluntary increased 5.4 percent to $383.4 million in the first quarter of 2018, compared to $363.7 million in the first quarter of 2017. This increase was primarily driven by growth in the voluntary benefits product line from higher sales and continued growth in the dental and vision product line from expanded distribution, offsetting a decline in premium income in the individual disability line. Net investment income declined 0.3 percent to $59.2 million in the first quarter of 2018, compared to $59.4 million in the first quarter of 2017, due to a decline in yield and lower miscellaneous investment income, which was partially offset by an increase in the level of invested assets. The benefit ratio for the individual disability product line was 51.0 percent for the first quarter of 2018, compared to 54.6 percent for the first quarter of 2017, due to the favorable impact from the reinsurance agreement entered during the fourth quarter of 2016 whereby we ceded additional business in the first quarter of 2018 compared to the prior year period. Excluding the impact of this agreement, benefits experience for the individual disability product line was generally consistent with the first quarter of 2017. The benefit ratio for voluntary benefits was 42.3 percent in the first quarter of 2018, compared to 42.2 percent for the first quarter of 2017, reflecting generally consistent claims experience between the two periods. The benefit ratio for dental and vision was 68.6 percent for the first quarter of 2018, compared to 71.6 percent for the first quarter of 2017, primarily driven by lower average claim size. Relative to the first quarter of 2017, sales in the individual disability line of business increased 10.5 percent in the first quarter of 2018 to $17.9 million. Sales in the voluntary benefits line of business increased 4.2 percent in the first quarter of 2018 to $153.5 million. Sales in the dental and vision product line totaled $12.2 million for the first quarter of 2018, an increase of 23.2 percent compared to the first quarter of 2017. Persistency in the individual disability product line was 90.7 percent for the first quarter of 2018, compared to 91.1 percent for the first quarter of 2017. Persistency in the voluntary benefits product line was 76.9 percent for the first quarter of 2018, compared to 75.9 percent for the first quarter of 2017. Persistency in the dental and vision product line was 85.0 percent for the first quarter of 2018, compared to 83.4 percent for the first quarter of 2017.
Unum UK Segment
Unum UK reported adjusted operating income of $29.8 million in the first quarter of 2018, an increase of 12.0 percent from $26.6 million in the first quarter of 2017. In local currency, adjusted operating income totaled £21.4 million in the first quarter of both 2018 and 2017.
Premium income increased by 15.1 percent to $139.6 million in the first quarter of 2018, compared to $121.3 million in the first quarter of 2017. In local currency, premium income was £100.3 million in the first quarter of 2018, an increase of 2.5 percent from £97.9 million in the first quarter of 2017, primarily driven by

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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overall improved persistency and sales growth in the group critical illness and dental product lines. Net investment income was $27.6 million in the first quarter of 2018, an increase of 3.8 percent from $26.6 million in the first quarter of 2017. In local currency, net investment income was £19.9 million in the first quarter of 2018, a decline of 7.0 percent from £21.4 million in the first quarter of 2017, due primarily to lower yield on fixed-rate bonds, partially offset by the increase in the level of invested assets. The benefit ratio in the first quarter of 2018 was 71.9 percent, compared to 71.4 percent in the first quarter of 2017, due primarily to unfavorable claims experience in the group life and critical illness product lines, partially offset by favorable claim resolutions in the group long-term disability product line.
Sales declined by 13.2 percent to $17.1 million in the first quarter of 2018, compared to $19.7 million in the first quarter of 2017. In local currency, sales for the first quarter of 2018 declined by 22.6 percent to £12.3 million, compared to £15.9 million in the first quarter of 2017. Persistency in the group long-term disability line of business was 86.7 percent for the first quarter of 2018, compared to 84.2 percent for the first quarter of 2017. Persistency in the group life line of business was 85.5 percent for the first quarter of 2018, compared to 82.0 percent for the first quarter of 2017. Persistency in the supplemental line of business was 91.5 percent for the first quarter of both 2018 and 2017.
Colonial Life Segment
Colonial Life reported a 1.7 percent decline in adjusted operating income to $81.0 million in the first quarter of 2018, compared to $82.4 million in the first quarter of 2017. Premium income for the first quarter of 2018 increased 6.4 percent to $398.3 million, compared to $374.3 million in the first quarter of 2017, driven by sales growth and solid persistency. Net investment income totaled $37.3 million in the first quarter of 2018, compared to $35.1 million in the first quarter of 2017, primarily driven by an increase in the level of invested assets and higher miscellaneous investment income, which were partially offset by a decline in portfolio yield. The benefit ratio in the first quarter of 2018 was 51.6 percent, compared to 50.8 percent in the first quarter of 2017, due primarily to higher claims incidence and a higher average claim size in the life line of business, partially offset by favorable claims experience in the accident, sickness and disability line of business.
Sales increased 7.6 percent to $103.7 million in the first quarter of 2018 from $96.4 million in the first quarter of 2017, driven by increased sales in all products and market segments. Persistency in Colonial Life was 79.0 percent for the first quarter of 2018, compared to 78.5 percent for the first quarter of 2017.
Closed Block Segment
The Closed Block segment reported adjusted operating income of $28.9 million in the first quarter of 2018, compared to $31.6 million in the first quarter of 2017.
Premium income for this segment declined 4.7 percent in the first quarter of 2018 compared to the first quarter of 2017, primarily due to policy terminations and maturities for the individual disability line of business. Premium income for long-term care decreased slightly due primarily to policy terminations, partially offset by rate increases. Net investment income increased 0.7 percent to $337.7 million in the first quarter of 2018,

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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compared to $335.3 million in the first quarter of 2017, primarily driven by an increase in the level of invested assets, which was partially offset by a lower portfolio yield. The interest adjusted loss ratio for the individual disability line of business declined to 77.1 percent in the first quarter of 2018, compared to 83.6 percent in the first quarter of 2017, due primarily to a lower average size of new claims. The interest adjusted loss ratio for the long-term care line of business was 96.6 percent in the first quarter of 2018, compared to 88.6 percent in the first quarter of 2017, due primarily to higher claims incidence which was partially offset by favorable claim resolutions related to mortality experience. Also contributing to the higher interest adjusted loss ratio was less favorable policy terminations.
Corporate Segment
The Corporate segment reported an adjusted operating loss of $40.3 million for the first quarter of 2018, compared to an adjusted operating loss, including the loss from a guaranty fund assessment, of $60.4 million for the first quarter of 2017. The adjusted operating loss in the year ago first quarter, excluding the loss from the assessment, was $39.8 million.
OTHER INFORMATION
Shares Outstanding
The Company’s weighted average number of shares outstanding, assuming dilution, was 222.6 million for the first quarter of 2018, compared to 230.4 million for the first quarter of 2017. Shares outstanding totaled 221.2 million at March 31, 2018. During the first quarter of 2018, the Company repurchased approximately 1.9 million shares at a cost of approximately $100 million.
Capital Management
At March 31, 2018, the weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies was approximately 380 percent, and cash and marketable securities in the holding companies equaled $887 million.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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Book Value
Book value per common share as of March 31, 2018 was $42.95, compared to $39.91 at March 31, 2017.
Outlook
The Company continues to expect after-tax adjusted operating income growth per share for full-year 2018 to be within the range of 17 percent to 23 percent.
NON-GAAP FINANCIAL MEASURES
We analyze our performance using non-GAAP financial measures.  A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.  The non-GAAP financial measure of "after-tax adjusted operating income" differs from net income as presented in our consolidated operating results and income statements prepared in accordance with GAAP due to the exclusion of net realized investment gains and losses and certain other items as specified in the reconciliations in the Financial Highlights section below.  We believe adjusted operating income is a better performance measure and better indicator of the profitability and underlying trends in our business. 
Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments.  Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses.  Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities.
We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability.
Information reconciling the Company’s outlook on after-tax adjusted operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax adjusted operating income are those described in the preceding paragraphs. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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CONFERENCE CALL INFORMATION
Members of Unum Group senior management will host a conference call on Wednesday, May 2, at 9:00 a.m. (Eastern Time) to discuss the results of operations for the first 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 (800) 239-9838 for U.S. and Canada (pass code 3476122). For international, the dial-in number is (323) 794-2551 (pass code 3476122). 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, May 9. 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 3476122.
In conjunction with today’s earnings announcement, the Company’s Statistical Supplement for the first quarter of 2018 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 news 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 our outlook, 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 adjusted operating income per share, 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) sustained periods of low interest rates; (2) fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit 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 our claims operational processes, and changes in governmental programs; (3) unfavorable economic or business conditions, both domestic and foreign, that may result in decreases in sales, premiums, or persistency, as well as unfavorable claims activity; (4) legislative, regulatory, or tax changes, both domestic and foreign, including the effect of potential legislation and increased regulation in the current political environment; (5) investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our liabilities; (6) a cyber attack or other security breach could result in the unauthorized acquisition of confidential data; (7)

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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the failure of our business recovery and incident management processes to resume our business operations in the event of a natural catastrophe, cyber attack, or other event; (8) execution risk related to our technology needs; (9) increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors; (10) changes in our financial strength and credit ratings; (11) damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures; (12) actual experience in the broad array of our products that deviates from our assumptions used in pricing, underwriting, and reserving; (13) changes in accounting standards, practices, or policies; (14) effectiveness of our risk management program; (15) contingencies and the level and results of litigation; (16) availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us; (17) ineffectiveness of our derivatives hedging programs due to changes in the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation; (18) fluctuation in foreign currency exchange rates; (19) ability to generate sufficient internal liquidity and/or obtain external financing; (20) recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets; and (21) terrorism, both within the U.S. and abroad, ongoing military actions, and heightened security measures in response to these types of threats.
For further discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Part 1, Item 1A “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2017. The forward-looking statements in this news release are being made as of the date of this news 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.
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Unum Group
FINANCIAL HIGHLIGHTS
(Unaudited)

($ in millions, except share data)
 
 
 
 
Three Months Ended March 31
 
2018
 
2017
Revenue
 
 
 
Premium Income
$
2,250.0

 
$
2,142.9

Net Investment Income
602.3

 
602.4

Net Realized Investment Gain (Loss)
(2.2
)
 
11.0

Other Income
49.5

 
50.2

Total Revenue
2,899.6

 
2,806.5

 
 
 
 
Benefits and Expenses
 
 
 
Benefits and Change in Reserves for Future Benefits
1,807.9

 
1,749.0

Commissions
282.3

 
270.2

Interest and Debt Expense
40.2

 
39.8

Deferral of Acquisition Costs
(169.3
)
 
(162.1
)
Amortization of Deferred Acquisition Costs
151.5

 
141.5

Other Expenses
445.9

 
437.8

Total Benefits and Expenses
2,558.5

 
2,476.2

 
 
 
 
Income Before Income Tax
341.1

 
330.3

Income Tax
67.6

 
100.4

 
 
 
 
Net Income
$
273.5

 
$
229.9

 
 
 
 
PER SHARE INFORMATION
 
 
 
 
 
 
 
Net Income Per Common Share
 
 
 
Basic
$
1.23

 
$
1.00

Assuming Dilution
$
1.23

 
$
1.00

 
 
 
 
Weighted Average Common Shares - Basic (000s)
221,894.0

 
229,429.6

Weighted Average Common Shares - Assuming Dilution (000s)
222,577.0

 
230,378.8

Outstanding Shares - (000s)
221,168.7

 
228,194.5



UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
9


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Reconciliation of Non-GAAP Financial Measures
 
Three Months Ended March 31
 
2018
 
2017
 
(in millions)
 
per share *
 
(in millions)
 
per share *
Net Income
$
273.5

 
$
1.23

 
$
229.9

 
$
1.00

Excluding:
 
 
 
 
 
 
 
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of ($0.6); $3.8)
(1.6
)
 
(0.01
)
 
7.2

 
0.04

Loss from Guaranty Fund Assessment (net of tax benefit of $-; $7.2)

 

 
(13.4
)
 
(0.06
)
After-tax Adjusted Operating Income
$
275.1

 
$
1.24

 
$
236.1

 
$
1.02

 
 
 
 
 
 
 
 
* Assuming Dilution
 
 
 
 
 
 
 

 
March 31
 
2018
 
2017
 
(in millions)
 
per share
 
(in millions)
 
per share
Total Stockholders' Equity (Book Value)
$
9,499.5

 
$
42.95

 
$
9,107.4

 
$
39.91

Excluding:
 
 
 
 
 
 
 
Net Unrealized Gain on Securities
356.1

 
1.61

 
483.0

 
2.12

Net Gain on Hedges
273.5

 
1.24

 
316.8

 
1.38

Subtotal
8,869.9

 
40.10

 
8,307.6

 
36.41

Excluding:
 
 
 
 
 
 
 
Foreign Currency Translation Adjustment
(207.0
)
 
(0.94
)
 
(336.9
)
 
(1.47
)
Subtotal
9,076.9

 
41.04

 
8,644.5

 
37.88

Excluding:
 
 
 
 
 
 
 
Unrecognized Pension and Postretirement Benefit Costs
(505.0
)
 
(2.28
)
 
(462.5
)
 
(2.03
)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)
$
9,581.9

 
$
43.32

 
$
9,107.0

 
$
39.91




UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
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Section 3: EX-99.2 (EXHIBIT 99.2)

Exhibit


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Unum Group
Statistical Supplement First Quarter 2018

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

 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.1 for a reconciliation of our non-GAAP financial measures.
 
 
 
 
N.M. = not a meaningful percentage




Unum Group Financial Highlights
 
Three Months Ended
 
Year Ended
 
3/31/2018
 
3/31/2017
 
12/31/2017
 
12/31/2016
Consolidated U.S. GAAP Results1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium Income
$
2,250.0

 
$
2,142.9

 
$
8,597.1

 
$
8,357.7

 
 
 
 
 
 
 
 
Adjusted Operating Revenue
$
2,901.8

 
$
2,795.5

 
$
11,246.5

 
$
11,022.3

Net Realized Investment Gain (Loss)
(2.2
)
 
11.0

 
40.3

 
24.2

 
 
 
 
 
 
 
 
Revenue
$
2,899.6

 
$
2,806.5

 
$
11,286.8

 
$
11,046.5

 
 
 
 
 
 
 
 
Net Income
$
273.5

 
$
229.9

 
$
994.2

 
$
931.4

Net Income Per Common Share:
 
 
 
 
 
 
 
Basic
$
1.23

 
$
1.00

 
$
4.39

 
$
3.96

Assuming Dilution
$
1.23

 
$
1.00

 
$
4.37

 
$
3.95

 
 
 
 
 
 
 
 
Assets
$
63,012.3

 
$
62,524.7

 
$
64,013.1

 
$
61,941.5

Stockholders' Equity
$
9,499.5

 
$
9,107.4

 
$
9,574.9

 
$
8,698.0

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

Traditional U.S. Life Insurance Companies' Statutory Results2
 
 
 
 
 
 
 
Net Gain from Operations, After Tax
$
242.0

 
$
180.1

 
$
812.4

 
$
884.6

Net Realized Investment Gain (Loss), After Tax
(1.5
)
 
0.4

 
(5.0
)
 
(29.5
)
 
 
 
 
 
 
 
 
Net Income
$
240.5

 
$
180.5

 
$
807.4

 
$
855.1

 
 
 
 
 
 
 
 
Capital and Surplus
$
3,427.3

 
$
3,548.3

 
$
3,448.3

 
$
3,626.9

 
 
 
 
 
 
 
 
Weighted Average Risk-based Capital Ratio
~ 380%

 
>390%

 
~ 390%

 
~ 400%


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


1



Unum Group Capital Metrics

 
3/31/2018
 
3/31/2017
 
12/31/2017
 
12/31/2016
 
(in millions)
 
per share
 
(in millions)
 
per share
 
(in millions)
 
per share
 
(in millions)
 
per share
Total Stockholders' Equity (Book Value)
$
9,499.5

 
$
42.95

 
$
9,107.4

 
$
39.91

 
$
9,574.9

 
$
43.02

 
$
8,968.0

 
$
39.02

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Unrealized Gain on Securities
356.1

 
1.61

 
483.0

 
2.12

 
607.8

 
2.73

 
440.6

 
1.92

Net Gain on Hedges
273.5

 
1.24

 
316.8

 
1.38

 
282.3

 
1.27

 
327.5

 
1.42

Subtotal
8,869.9

 
40.10

 
8,307.6

 
36.41

 
8,684.8

 
39.02

 
8,199.9

 
35.68

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Translation Adjustment
(207.0
)
 
(0.94
)
 
(336.9
)
 
(1.47
)
 
(254.5
)
 
(1.15
)
 
(354.0
)
 
(1.54
)
Subtotal
9,076.9

 
41.04

 
8,644.5

 
37.88

 
8,939.3

 
40.17

 
8,553.9

 
37.22

Excluding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized Pension and Postretirement Benefit Costs
(505.0
)
 
(2.28
)
 
(462.5
)
 
(2.03
)
 
(508.1
)
 
(2.28
)
 
(465.1
)
 
(2.02
)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)
$
9,581.9

 
$
43.32

 
$
9,107.0

 
$
39.91

 
$
9,447.4

 
$
42.45

 
$
9,019.0

 
$
39.24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Paid
$
52.4

 
$
0.23

 
$
46.5

 
$
0.20

 
$
196.0

 
$
0.86

 
$
182.6

 
$
0.77


 
Three Months Ended
 
Year Ended
 
3/31/2018
 
3/31/2017
 
12/31/2017
 
12/31/2016
Shares Repurchased (millions)
1.9

 
2.1

 
8.2

 
11.9

Cost of Shares Repurchased (millions)(1)
$
100.2

 
$
100.0

 
$
400.4

 
$
403.3

Price (UNM closing price on last trading day of period)
$
47.61

 
$
46.89

 
$
54.89

 
$
43.93

 
 
 
 
 
 
 
 
Leverage Ratio
25.7
%
 
26.9
%
 
26.1
%
 
27.2
%
 
 
 
 
 
 
 
 
Holding Company Cash and Marketable Securities
$
887

 
$
648

 
$
864

 
$
594


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




2



Unum Group Ratings


 
AM Best
 
Fitch
 
Moody's
 
S&P
Outlook
Stable
 
Stable
 
Stable
 
Stable
 
 
 
 
 
 
 
 
Issuer Credit Ratings
bbb
 
BBB
 
Baa2
 
BBB
 
 
 
 
 
 
 
 
Financial Strength Ratings
 
 
 
 
 
 
 
    Provident Life and Accident Insurance Company
A
 
A
 
A2
 
A
    Unum Life Insurance Company of America
A
 
A
 
A2
 
A
    Colonial Life & Accident Insurance Company
A
 
A
 
A2
 
A
    The Paul Revere Life Insurance Company
A
 
A
 
A2
 
A
    Starmount Life Insurance Company
A-
 
NR
 
NR
 
NR
    Unum Insurance Company
A-
 
A
 
A2
 
NR
    Unum Limited
NR
 
NR
 
NR
 
A-

NR = not rated

3



Unum Group Consolidated Statements of Income

 
Three Months Ended
 
Year Ended
 
3/31/2018
 
3/31/2017
 
12/31/2017
 
12/31/2016
Revenue
 
 
 
 
 
 
 
Premium Income
$
2,250.0

 
$
2,142.9

 
$
8,597.1

 
$
8,357.7

Net Investment Income
602.3

 
602.4

 
2,451.7

 
2,459.0

Net Realized Investment Gain (Loss)
(2.2
)
 
11.0

 
40.3

 
24.2

Other Income
49.5

 
50.2

 
197.7

 
205.6

Total Revenue
2,899.6

 
2,806.5

 
11,286.8

 
11,046.5

 
 
 
 
 
 
 
 
Benefits and Expenses
 
 
 
 
 
 
 
Benefits and Change in Reserves for Future Benefits
1,807.9

 
1,749.0

 
7,055.7

 
6,941.8

Commissions
282.3

 
270.2

 
1,060.8

 
1,026.7

Interest and Debt Expense - Non-recourse Debt
1.7

 
1.7

 
6.7

 
6.9

Interest and Debt Expense - All Other Debt
38.5

 
38.1

 
153.2

 
159.1

Deferral of Acquisition Costs
(169.3
)
 
(162.1
)
 
(628.0
)
 
(592.4
)
Amortization of Deferred Acquisition Costs
151.5

 
141.5

 
527.1

 
493.0

Other Expenses
445.9

 
437.8

 
1,707.3

 
1,663.7

Total Benefits and Expenses
2,558.5

 
2,476.2

 
9,882.8

 
9,698.8

 
 
 
 
 
 
 
 
Income Before Income Tax
341.1

 
330.3

 
1,404.0

 
1,347.7

Income Tax
67.6

 
100.4

 
409.8

 
416.3

 
 
 
 
 
 
 
 
Net Income
$
273.5

 
$
229.9

 
$
994.2

 
$
931.4

 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding
 
 
 
 
 
 
 
Basic
221.9

 
229.4

 
226.5

 
235.4

Assuming Dilution
222.6

 
230.4

 
227.3

 
236.0

 
 
 
 
 
 
 
 
Actual Number of Shares Outstanding
221.2

 
228.2

 
222.5

 
229.8




4



Unum Group Sales Data for Unum US Segment

 
Three Months Ended
 
Year Ended
 
3/31/2018
 
3/31/2017
 
% Change
 
12/31/2017
 
12/31/2016
Sales by Product
 
 
 
 
 
 
 
 
 
Group Disability and Group Life and AD&D
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
30.1

 
$
36.0

 
(16.4
)%
 
$
240.8

 
$
217.8

Group Short-term Disability
16.3

 
16.9

 
(3.6
)
 
162.5

 
114.6

Group Life and AD&D
44.6

 
37.2

 
19.9

 
310.5

 
270.1

Subtotal
91.0

 
90.1

 
1.0

 
713.8

 
602.5

Supplemental and Voluntary
 
 
 
 
 
 
 
 
 
Individual Disability
17.9

 
16.2

 
10.5

 
67.9

 
65.1

Voluntary Benefits
153.5

 
147.3

 
4.2

 
292.5

 
261.7

Dental and Vision
12.2

 
9.9

 
23.2

 
54.8

 
14.5

Subtotal
183.6

 
173.4

 
5.9

 
415.2

 
341.3

Total Sales
$
274.6

 
$
263.5

 
4.2

 
$
1,129.0

 
$
943.8

 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
Group Disability and Group Life and AD&D
 
 
 
 
 
 
 
 
 
Core Market (< 2,000 employees)
$
54.9

 
$
56.3

 
(2.5
)%
 
$
416.9

 
$
378.1

Large Case Market
36.1

 
33.8

 
6.8

 
296.9

 
224.4

Subtotal
91.0

 
90.1

 
1.0

 
713.8

 
602.5

Supplemental and Voluntary
183.6

 
173.4

 
5.9

 
415.2

 
341.3

Total Sales
$
274.6

 
$
263.5

 
4.2

 
$
1,129.0

 
$
943.8




5



Unum Group Sales Data for Unum UK Segment

 
Three Months Ended
 
Year Ended
(in millions of dollars)
3/31/2018
 
3/31/2017
 
% Change
 
12/31/2017
 
12/31/2016
Sales by Product
 
 
 
 
 
 
 
 
 
Group Long-term Disability
$
7.8

 
$
13.5

 
(42.2
)%
 
$
47.1

 
$
50.2

Group Life
4.5

 
3.9

 
15.4

 
24.4

 
23.8

Supplemental
4.8

 
2.3

 
108.7

 
14.4

 
10.5

Total Sales
$
17.1

 
$
19.7

 
(13.2
)
 
$
85.9

 
$
84.5

 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
Group Long-term Disability and Group Life
 
 
 
 
 
 
 
 
 
Core Market (< 500 employees)
$
7.6

 
$
6.4

 
18.8
 %
 
$
30.4

 
$
42.0

Large Case Market
4.7

 
11.0

 
(57.3
)
 
41.1

 
32.0

Subtotal
12.3

 
17.4

 
(29.3
)
 
71.5

 
74.0

Supplemental
4.8

 
2.3

 
108.7

 
14.4

 
10.5

Total Sales
$
17.1

 
$
19.7

 
(13.2
)
 
$
85.9

 
$
84.5

 
 
 
 
 
 
 
 
 
 
(in millions of pounds)
 
 
 
 
 
 
 
 
 
Sales by Product
 
 
 
 
 
 
 
 
 
Group Long-term Disability
£
5.6

 
£
10.9

 
(48.6
)%
 
£
36.6

 
£
37.2

Group Life
3.3

 
3.1

 
6.5

 
18.9

 
17.8

Supplemental
3.4

 
1.9

 
78.9

 
11.3

 
7.7

Total Sales
£
12.3

 
£
15.9

 
(22.6
)
 
£
66.8

 
£
62.7

 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
Group Long-term Disability and Group Life
 
 
 
 
 
 
 
 
 
Core Market (< 500 employees)
£
5.4

 
£
5.2

 
3.8
 %
 
£
23.6

 
£
31.2

Large Case Market
3.5

 
8.8

 
(60.2
)
 
31.9

 
23.8

Subtotal
8.9

 
14.0

 
(36.4
)
 
55.5

 
55.0

Supplemental
3.4

 
1.9

 
78.9

 
11.3

 
7.7

Total Sales
£
12.3

 
£
15.9

 
(22.6
)
 
£
66.8

 
£
62.7







5. 1



Unum Group Sales Data for Colonial Life Segment

 
Three Months Ended
 
Year Ended
 
3/31/2018
 
3/31/2017
 
% Change
 
12/31/2017
 
12/31/2016
Sales by Product
 
 
 
 
 
 
 
 
 
Accident, Sickness, and Disability
$
66.4

 
$
61.5

 
8.0
%
 
$
323.2

 
$
310.6

Life
21.3

 
20.9

 
1.9

 
107.7

 
94.0

Cancer and Critical Illness
16.0

 
14.0

 
14.3

 
88.8

 
79.0

Total Sales
$
103.7

 
$
96.4

 
7.6

 
$
519.7

 
$
483.6

 
 
 
 
 
 
 
 
 
 
Sales by Market Sector
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
Core Market (< 1,000 employees)
$
67.9

 
$
63.0

 
7.8
%
 
$
313.5

 
$
291.3

Large Case Market
15.7

 
15.4

 
1.9

 
90.9

 
77.4

Subtotal
83.6

 
78.4

 
6.6

 
404.4

 
368.7

Public Sector
20.1

 
18.0

 
11.7

 
115.3

 
114.9

Total Sales
$
103.7

 
$
96.4

 
7.6

 
$
519.7

 
$
483.6


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

5. 2



Unum Group Consolidated Balance Sheets
 
March 31
 
December 31
 
2018
 
2017
Assets
 
 
 
Investments
 
 
 
Fixed Maturity Securities
$
44,500.1

 
$
45,457.8

Mortgage Loans
2,200.8

 
2,213.2

Policy Loans
3,573.3

 
3,571.1

Other Long-term Investments
706.5

 
646.8

Short-term Investments
712.6

 
1,155.1

Total Investments
51,693.3

 
53,044.0

 
 
 
 
Other Assets
 
 
 
Cash and Bank Deposits
308.9

 
77.4

Accounts and Premiums Receivable
1,736.7

 
1,665.7

Reinsurance Recoverable
4,815.5

 
4,879.2

Accrued Investment Income
745.8

 
690.1

Deferred Acquisition Costs
2,213.4

 
2,184.6

Goodwill
348.9

 
338.6

Property and Equipment
508.4

 
504.8

Other Assets
641.4

 
628.7

Total Assets
$
63,012.3

 
$
64,013.1

 
 
 
 
Liabilities
 
 
 
Policy and Contract Benefits
$
1,623.1

 
$
1,605.2

Reserves for Future Policy and Contract Benefits
44,668.5

 
45,601.6

Unearned Premiums
432.8

 
373.1

Other Policyholders’ Funds
1,635.6

 
1,595.0

Income Tax Payable
61.3

 
2.9

Deferred Income Tax
128.9

 
199.0

Short-term Debt
200.0

 
199.9

Long-term Debt - Non-recourse
181.3

 
196.0

Long-term Debt - All Other
2,540.6

 
2,542.4

Payables for Collateral on Investments
382.2

 
396.2

Other Liabilities
1,658.5

 
1,726.9

Total Liabilities
53,512.8

 
54,438.2

 
 
 
 
Stockholders’ Equity
 
 
 
Common Stock
30.5

 
30.5

Additional Paid-in Capital
2,302.4

 
2,303.3

Accumulated Other Comprehensive Income (Loss)
(82.4
)
 
127.5

Retained Earnings
9,777.8

 
9,542.2

Treasury Stock
(2,528.8
)
 
(2,428.6
)
Total Stockholders’ Equity
9,499.5

 
9,574.9

Total Liabilities and Stockholders’ Equity
$
63,012.3

 
$
64,013.1


6



Unum Group Deferred Acquisition Costs by Segment

 
Unum US
 
Unum UK
 
Colonial Life
 
Consolidated
Balances at December 31, 2016
$
1,176.5

 
$
21.4

 
$
896.3

 
$
2,094.2

Capitalization
325.5

 
7.0

 
295.5

 
628.0

Amortization
(293.6
)
 
(9.1
)
 
(224.4
)
 
(527.1
)
Adjustment Related to Unrealized Investment Gains and Losses
(3.0
)
 

 
(9.5
)
 
(12.5
)
Foreign Currency

 
2.0

 

 
2.0

Balances at December 31, 2017
1,205.4

 
21.3

 
957.9

 
2,184.6

Capitalization
89.5

 
1.5

 
78.3

 
169.3

Amortization
(89.2
)
 
(2.1
)
 
(60.2
)
 
(151.5
)
Adjustment Related to Unrealized Investment Gains and Losses
2.4

 

 
7.8

 
10.2

Foreign Currency

 
0.8

 

 
0.8

Balances at March 31, 2018
$
1,208.1

 
$
21.5

 
$
983.8

 
$
2,213.4



6. 1



Unum Group Balance Sheets by Segment - March 31, 2018

 
Unum US
 
 
 
 
 
 
 
 
 
 
 
Group Disability
 
Group Life and Accidental Death & Dismemberment
 
Supplemental and Voluntary
 
Total Unum US
 
Unum UK
 
Colonial Life
 
Closed Block
 
Corporate
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
8,465.8

 
$
2,305.3

 
$
4,703.4

 
$
15,474.5

 
$
2,789.8

 
$
2,992.2

 
$
28,790.1

 
$
1,646.7

 
$
51,693.3

Deferred Acquisition Costs
97.9

 
78.8

 
1,031.4

 
1,208.1

 
21.5

 
983.8

 

 

 
2,213.4

Goodwill
8.8

 

 
271.1

 
279.9

 
41.3

 
27.7

 

 

 
348.9

All Other
349.6

 
235.0

 
489.2

 
1,073.8

 
645.0

 
289.2

 
5,813.7

 
935.0

 
8,756.7

Total Assets
$
8,922.1

 
$
2,619.1

 
$
6,495.1

 
$
18,036.3

 
$
3,497.6

 
$
4,292.9

 
$
34,603.8

 
$
2,581.7

 
$
63,012.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserves and Policyholder Benefits
$
7,225.9

 
$
1,752.2

 
$
4,010.3

 
$
12,988.4

 
$
2,707.6

 
$
2,498.7

 
$
30,165.3

 
$

 
$
48,360.0

Debt

 

 

 

 

 

 
181.3

 
2,740.6

 
2,921.9

All Other
133.4

 
26.1

 
345.3

 
504.8

 
79.6

 
200.7

 
96.1

 
1,349.7

 
2,230.9

Total Liabilities
7,359.3

 
1,778.3

 
4,355.6

 
13,493.2

 
2,787.2

 
2,699.4

 
30,442.7

 
4,090.3

 
53,512.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocated Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Allocated Stockholders' Equity
1,551.5

 
852.0

 
2,052.0

 
4,455.5

 
663.6

 
1,520.7

 
3,679.2

 
(1,449.1
)
 
8,869.9

Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges
11.3

 
(11.2
)
 
87.5

 
87.6

 
46.8

 
72.8

 
481.9

 
(59.5
)
 
629.6

Total Allocated Stockholders' Equity
1,562.8

 
840.8

 
2,139.5

 
4,543.1

 
710.4

 
1,593.5

 
4,161.1

 
(1,508.6
)
 
9,499.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Allocated Stockholders' Equity
$
8,922.1

 
$
2,619.1

 
$
6,495.1

 
$
18,036.3

 
$
3,497.6

 
$
4,292.9

 
$
34,603.8

 
$
2,581.7

 
$
63,012.3


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




6. 2



Unum Group Balance Sheets by Segment - December 31, 2017

 
Unum US
 
 
 
 
 
 
 
 
 
 
 
Group Disability
 
Group Life and Accidental Death & Dismemberment
 
Supplemental and Voluntary
 
Total Unum US
 
Unum UK
 
Colonial Life
 
Closed Block
 
Corporate
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
8,630.4

 
$
2,315.2

 
$
4,645.5

 
$
15,591.1

 
$
3,075.6

 
$
2,939.9

 
$
29,027.5

 
$
2,409.9

 
$
53,044.0

Deferred Acquisition Costs
96.7

 
77.7

 
1,031.0

 
1,205.4

 
21.3

 
957.9

 

 

 
2,184.6

Goodwill

 

 
271.1

 
271.1

 
39.8

 
27.7

 

 

 
338.6

All Other
364.2

 
174.6

 
502.7

 
1,041.5

 
291.4

 
258.6

 
6,023.7

 
830.7

 
8,445.9

Total Assets
$
9,091.3

 
$
2,567.5

 
$
6,450.3

 
$
18,109.1

 
$
3,428.1

 
$
4,184.1

 
$
35,051.2

 
$
3,240.6

 
$
64,013.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserves and Policyholder Benefits
$
7,426.5

 
$
1,742.2

 
$
4,035.6

 
$
13,204.3

 
$
2,627.7

 
$
2,478.3

 
$
30,864.6

 
$

 
$
49,174.9

Debt

 

 

 

 

 

 
196.0

 
2,742.3

 
2,938.3

All Other
146.1

 
29.7

 
366.9

 
542.7

 
86.9

 
207.7

 
69.2

 
1,418.5