Form 8-K Unum Group For: Oct 24

October 24, 2018 4:39 PM

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): October 24, 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))

	Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

o	Emerging growth company

o	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02	Results of Operations and Financial Condition.

On October 24, 2018, Unum Group issued a news release reporting its results for the third 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 October 24, 2018, Unum Group posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the third 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 October 24, 2018, concerning earnings for the third quarter of 2018.

99.2	Statistical Supplement of Unum Group for the third 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)


October 24, 2018	By:	/s/ J. Paul Jullienne
		Name:	J. Paul Jullienne
		Title:	Vice President, Managing Counsel, and
			Corporate Secretary



		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 Third Quarter 2018 Results

CHATTANOOGA, Tenn. (October 24, 2018) - Unum Group (NYSE: UNM) today reported a net loss of $284.7 million ($1.30 per diluted common share) for the third quarter of 2018, compared to net income of $252.3 million ($1.12 per diluted common share) for the third quarter of 2017.

Included in the net loss for the third quarter of 2018 is an after-tax reserve increase of $593.1 million ($2.71 per diluted common share) in the long-term care product line of our Closed Block segment, as well as a net after-tax realized investment gain on the Company's investment portfolio. Included in net income for the third quarter of 2017 is a net after-tax realized investment gain on the Company's investment portfolio. Excluding the items above, after-tax adjusted operating income was $300.6 million ($1.37 per diluted common share) in the third quarter of 2018, compared to $246.1 million ($1.09 per diluted common share) in the third quarter of 2017.

“Overall, we are pleased with the third quarter and particularly the performance of our core businesses," said Richard P. McKenney, president and chief executive officer. “Looking beyond the impact of the long-term care reserve strengthening, we continue to see solid premium growth and stable benefits experience, which drive strong overall performance and significant financial flexibility for our company. This success is a reflection of our track record of taking care of our customers and the consistent execution of our plans.”



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

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 (loss) before income tax as presented in our consolidated statements of operations 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 (loss) before income tax or net income (loss).

Unum US Segment

Unum US reported adjusted operating income of $270.9 million in the third quarter of 2018, an increase of 4.8 percent from $258.4 million in the third quarter of 2017. Premium income for the segment increased 6.3 percent to $1,446.2 million in the third quarter of 2018, compared to premium income of $1,360.9 million in the third quarter of 2017. Net investment income for the segment declined 0.3 percent to $200.3 million in the third quarter of 2018, compared to $201.0 million in the third quarter of 2017.

Within the Unum US operating segment, the group disability line of business reported a 3.3 percent increase in adjusted operating income to $93.0 million in the third quarter of 2018, compared to $90.0 million in the third quarter of 2017. Premium income in group disability increased 4.7 percent to $624.5 million in the third quarter of 2018, compared to $596.3 million in the third quarter of 2017, with growth in the in-force block resulting from improved persistency and prior period sales growth. Net investment income declined by 0.7 percent to $112.9 million in the third quarter of 2018, compared to $113.7 million in the third quarter of 2017, due to a decrease in the level of invested assets and a decline in portfolio yield, partially offset by higher miscellaneous investment income. The benefit ratio for the third quarter of 2018 was 76.3 percent, compared to 76.7 percent in the third quarter of 2017, due primarily to lower claims incidence and favorable claim recovery experience in the group long-term disability product line, partially offset by higher claims incidence in certain of our group short-term disability products. Group long-term disability sales were $25.4 million in the third quarter of 2018, a decline of 18.3 percent from $31.1 million in the third quarter of 2017. Group short-term disability sales were $17.9 million in the third quarter of 2018, a decline of 13.5 percent from $20.7 million in the third quarter of 2017. Persistency in the group long-term disability line of business was 91.0 percent for the first nine months of 2018, compared to 89.5 percent for the first nine months of 2017. Persistency in the group short-term disability line of business was 88.2 percent for the first nine months of 2018, compared to 86.3 percent for the first nine months of 2017.

The group life and accidental death and dismemberment line of business reported adjusted operating income of $64.0 million in the third quarter of 2018, an increase of 6.5 percent from $60.1 million in the third quarter of 2017. Premium income for this line of business increased 7.8 percent to $438.9 million in the third quarter of 2018, compared to $407.2 million in the third quarter of 2017, primarily due to prior period sales growth and favorable persistency. Net investment income declined 3.3 percent to $26.4 million in the third quarter of 2018, compared to $27.3 million in the third quarter of 2017, primarily due to a decline in yield on invested assets, partially offset by an increase in the level of invested assets and higher miscellaneous



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

investment income. The benefit ratio in the third quarter of 2018 was 71.8 percent, compared to 71.4 percent in the third quarter of 2017, driven primarily by higher claims incidence in the group life product line and unfavorable benefits experience in the accidental death and dismemberment product line. Sales of group life and accidental death and dismemberment products declined 16.2 percent in the third quarter of 2018 to $29.4 million, compared to $35.1 million in the third quarter of 2017. Persistency in the group life line of business was 91.2 percent for the first nine months of 2018, compared to 87.7 percent for the first nine months of 2017.

The supplemental and voluntary line of business reported an increase of 5.2 percent in adjusted operating income to $113.9 million in the third quarter of 2018, compared to $108.3 million in the third quarter of 2017. Premium income for supplemental and voluntary increased 7.1 percent to $382.8 million in the third quarter of 2018, compared to $357.4 million in the third quarter of 2017. This increase was primarily driven by higher sales, including growth in the dental and vision product line where we continue to expand its distribution. Net investment income increased 1.7 percent to $61.0 million in the third quarter of 2018, compared to $60.0 million in the third quarter of 2017, due to an increase in the level of invested assets and higher miscellaneous investment income, which was partially offset by a lower portfolio yield. The benefit ratio for the individual disability product line was 50.4 percent for the third quarter of 2018, compared to 48.3 percent for the third quarter of 2017, due primarily to higher claims incidence and higher average size of new claims. The benefit ratio for voluntary benefits was 42.2 percent in the third quarter of 2018, compared to 44.1 percent for the third quarter of 2017, with favorable experience across all of our product lines. The benefit ratio for dental and vision was 68.8 percent for the third quarter of 2018, compared to 70.1 percent for the third quarter of 2017, and was within our expectations. Relative to the third quarter of 2017, sales in the individual disability line of business declined 1.5 percent in the third quarter of 2018 to $20.1 million. Sales in the voluntary benefits line of business increased 6.3 percent in the third quarter of 2018 to $47.6 million. Sales in the dental and vision product line totaled $12.3 million for the third quarter of 2018, an increase of 26.8 percent compared to the third quarter of 2017. Persistency in the individual disability product line was 90.3 percent for the first nine months of 2018, compared to 91.1 percent for the first nine months of 2017. Persistency in the voluntary benefits product line was 76.5 percent for the first nine months of 2018, compared to 76.8 percent for the first nine months of 2017. Persistency in the dental and vision product line was 84.5 percent for the first nine months of 2018, compared to 84.2 percent for the first nine months of 2017.

Unum UK Segment

Unum UK reported adjusted operating income of $26.1 million in the third quarter of 2018, a decline of 1.5 percent from $26.5 million in the third quarter of 2017. In local currency, adjusted operating income totaled £20.0 million in the third quarter of 2018, compared to £20.2 million in the third quarter of 2017.

Premium income increased by 4.9 percent to $138.0 million in the third quarter of 2018, compared to $131.5 million in the third quarter of 2017. In local currency, premium income was £106.0 million in the third quarter of 2018, an increase of 5.6 percent from £100.4 million in the third quarter of 2017, primarily driven by higher persistency, rate increases in the group long-term disability product line, and growth in the in-force



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

block. Net investment income was $26.4 million in the third quarter of 2018, a decline of 7.4 percent from $28.5 million in the third quarter of 2017. In local currency, net investment income was £20.2 million in the third quarter of 2018, a decline of 7.3 percent from £21.8 million in the third quarter of 2017, due primarily to lower yield on fixed-rate bonds and lower investment income from inflation-linked bonds, partially offset by growth in the level of invested assets. The benefit ratio in the third quarter of 2018 was 74.2 percent, compared to 74.9 percent in the third quarter of 2017, due primarily to favorable claim resolutions in the group long-term disability product line and the impact of lower inflation-linked increases in benefits, partially offset by unfavorable claims activity in our group life and supplemental product lines.

Sales increased by 2.4 percent to $16.9 million in the third quarter of 2018, compared to $16.5 million in the third quarter of 2017. In local currency, sales for the third quarter of 2018 increased by 2.4 percent to £13.0 million, compared to £12.7 million in the third quarter of 2017. Persistency in the group long-term disability line of business was 87.5 percent for the first nine months of 2018, compared to 87.1 percent for the first nine months of 2017. Persistency in the group life line of business was 85.5 percent for the first nine months of 2018, compared to 83.5 percent for the first nine months of 2017. Persistency in the supplemental line of business was 92.9 percent for the first nine months of 2018, compared to 89.5 percent for the first nine months of 2017.

Colonial Life Segment

Colonial Life reported a 3.1 percent increase in adjusted operating income to $84.2 million in the third quarter of 2018, compared to $81.7 million in the third quarter of 2017. Premium income for the third quarter of 2018 increased 5.6 percent to $400.0 million, compared to $378.7 million in the third quarter of 2017, primarily driven by sales growth. Net investment income totaled $36.7 million the third quarter of 2018, compared to $36.0 million in the third quarter of 2017, primarily driven by an increase in the level of invested assets and higher miscellaneous investment income, partially offset by a decline in portfolio yield on invested assets. The benefit ratio in the third quarter of 2018 was 51.5 percent, compared to 51.8 percent in the third quarter of 2017, due primarily to favorable experience in the life line of business.

Sales increased 13.0 percent to $120.8 million in the third quarter of 2018 from $106.9 million in the third quarter of 2017, driven by the expansion of the new dental product and increased sales in most products and market segments. Persistency in Colonial Life was 77.8 percent for the first nine months of 2018, compared to 79.0 percent for the first nine months of 2017.

Closed Block Segment

The Closed Block segment reported a loss before income taxes and net realized investment gains and losses of $718.6 million in the third quarter of 2018, compared to income before income taxes and net realized investment gains and losses of $26.6 million in the third quarter of 2017. Excluding the before-tax reserve increase of $750.8 million for the long-term care business, the Closed Block segment reported adjusted operating income of $32.2 million in the third quarter of 2018.



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

Premium income for this segment declined 5.3 percent in the third quarter of 2018 compared to the third quarter of 2017, primarily due to policy terminations and maturities for the individual disability line of business. Premium income for long-term care was generally consistent with the year ago quarter due primarily to rate increases on in-force business offsetting policy terminations. Net investment income increased 3.2 percent to $348.0 million in the third quarter of 2018, compared to $337.2 million in the third quarter of 2017, primarily driven by an increase in the level of invested assets and higher miscellaneous investment income, which was partially offset by a lower portfolio yield on invested assets. The interest adjusted loss ratio for the individual disability line of business was 80.5 percent in the third quarter of 2018, compared to 82.4 percent in the third quarter of 2017, due primarily to improved mortality experience.

During the third quarter of 2018, we completed our annual review of policy reserve adequacy for the long-term care line of business, which incorporated our most recent experience and included a review of all assumptions, including active policy terminations, claims incidence, claim terminations, morbidity, premium rate increases, and new money yield rates. Based on our analysis, during the third quarter of 2018, we updated our reserve assumptions and determined that our policy and claim reserves should be increased by $750.8 million, to reflect our current estimate of future benefit obligations. Excluding the reserve increase, the interest adjusted loss ratio for the long-term care line of business was 87.5 percent in the third quarter of 2018, and was not comparable to the same period of 2017 due to the update in our assumptions.

Corporate Segment

The Corporate segment reported an adjusted operating loss of $47.1 million for the third quarter of 2018, compared to an adjusted operating loss of $36.2 million for the third quarter of 2017.

OTHER INFORMATION

Shares Outstanding

The Company’s weighted average number of shares outstanding, assuming dilution, was 218.9 million for the third quarter of 2018, compared to 226.0 million for the third quarter of 2017. Shares outstanding totaled 218.7 million at September 30, 2018. During the third quarter of 2018, the Company did not repurchase any shares.

Capital Management

At September 30, 2018, the weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies was approximately 385 percent, and cash and marketable securities in the holding companies equaled $973 million.

Book Value

Book value per common share as of September 30, 2018 was $38.95, compared to $42.11 at September 30, 2017.



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

Outlook

The Company continues to expect after-tax adjusted operating income growth per share, excluding the impact from the increase in long-term care reserves, 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 (loss) 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 after-tax 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.		6

CONFERENCE CALL INFORMATION

Members of Unum Group senior management will host a conference call on Thursday, October 25, at 8:00 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 (800) 458-4121 for U.S. and Canada (pass code 3215801). For international, the dial-in number is (323) 794-2597 (pass code 3215801). 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 webcast on its website. A replay of the call will also be available through November 1 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International) - pass code 3215801.

In conjunction with today’s earnings announcement, the Company’s Statistical Supplement for the third 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) changes in or interpretations of laws and regulations, including tax laws and regulations; (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) the failure of our business recovery and incident management processes to resume our business



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

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 and our subsequently filed quarterly reports on Form 10-Q. The forward-looking statements in this news release are being made as of the date of this news release, and we expressly disclaim 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.		8

Unum Group

FINANCIAL HIGHLIGHTS

(Unaudited)



($ in millions, except share data)
	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Revenue
Premium Income	$	2,251.8		$	2,153.6		$	6,722.8		$	6,438.7
Net Investment Income	619.2			609.0			1,845.1			1,831.9
Net Realized Investment Gain	6.7			9.8			1.9			28.9
Other Income	50.1			46.7			147.9			148.1
Total Revenue	2,927.8			2,819.1			8,717.7			8,447.6

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	2,578.9			1,765.6			6,190.9			5,266.6
Commissions	276.8			262.4			832.6			793.9
Interest and Debt Expense	42.7			40.1			125.3			119.8
Deferral of Acquisition Costs	(166.8		)	(154.8		)	(501.8		)	(470.1		)
Amortization of Deferred Acquisition Costs	136.9			123.7			428.6			403.5
Other Expenses	437.1			415.3			1,324.0			1,275.2
Total Benefits and Expenses	3,305.6			2,452.3			8,399.6			7,388.9

Income (Loss) Before Income Tax Expense (Benefit)	(377.8		)	366.8			318.1			1,058.7
Income Tax (Benefit)	(93.1		)	114.5			43.8			331.4

Net Income (Loss)	$	(284.7	)	$	252.3		$	274.3		$	727.3

PER SHARE INFORMATION

Net Income (Loss) Per Common Share
Basic	$	(1.30	)	$	1.12		$	1.24		$	3.20
Assuming Dilution	$	(1.30	)	$	1.12		$	1.24		$	3.19

Weighted Average Common Shares - Basic (000s)	218,892.8			225,288.1			220,513.1			227,375.5
Weighted Average Common Shares - Assuming Dilution (000s)	218,892.8			226,029.8			220,946.3			228,180.5
Outstanding Shares - (000s)							218,722.7			224,366.6



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

Reconciliation of Non-GAAP Financial Measures



	Three Months Ended September 30
	2018						2017
	(in millions)			per share *			(in millions)		per share *
Net Income (Loss)	$	(284.7	)	$	(1.30	)	$	252.3	$	1.12
Excluding:
Net Realized Investment Gain (net of tax expense (benefit) of $(1.1); $3.6)	7.8			0.04			6.2		0.03
Long-term Care Reserve Increase (net of tax benefit of $157.7; $-)	(593.1		)	(2.71		)	—		—
After-tax Adjusted Operating Income	$	300.6		$	1.37		$	246.1	$	1.09

* Assuming Dilution



	September 30
	2018						2017
	(in millions)			per share			(in millions)			per share
Total Stockholders' Equity (Book Value)	$	8,518.2		$	38.95		$	9,448.6		$	42.11
Excluding:
Net Unrealized Gain (Loss) on Securities	(340.7		)	(1.56		)	557.4			2.48
Net Gain on Hedges	250.0			1.15			290.7			1.30
Subtotal	8,608.9			39.36			8,600.5			38.33
Excluding:
Foreign Currency Translation Adjustment	(284.0		)	(1.30		)	(265.3		)	(1.18		)
Subtotal	8,892.9			40.66			8,865.8			39.51
Excluding:
Unrecognized Pension and Postretirement Benefit Costs	(493.8		)	(2.26		)	(458.5		)	(2.05		)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)	$	9,386.7		$	42.92		$	9,324.3		$	41.56



UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.		10

Unum Group

Statistical Supplement Third Quarter 2018

TABLE OF CONTENTS

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

Interim Results are Unaudited



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

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

N.M. = not a meaningful percentage

Unum Group Financial Highlights



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Consolidated U.S. GAAP Results¹

Premium Income	$	2,251.8		$	2,153.6		$	6,722.8		$	6,438.7		$	8,597.1		$	8,357.7

Adjusted Operating Revenue	$	2,921.1		$	2,809.3		$	8,715.8		$	8,418.7		$	11,246.5		$	11,022.3
Net Realized Investment Gain	6.7			9.8			1.9			28.9			40.3			24.2

Revenue	$	2,927.8		$	2,819.1		$	8,717.7		$	8,447.6		$	11,286.8		$	11,046.5

Net Income (Loss)	$	(284.7	)	$	252.3		$	274.3		$	727.3		$	994.2		$	931.4
Net Income (Loss) Per Common Share:
Basic	$	(1.30	)	$	1.12		$	1.24		$	3.20		$	4.39		$	3.96
Assuming Dilution	$	(1.30	)	$	1.12		$	1.24		$	3.19		$	4.37		$	3.95

Assets							$	62,249.8		$	63,805.7		$	64,013.1		$	61,941.5
Stockholders' Equity							$	8,518.2		$	9,448.6		$	9,574.9		$	8,968.0

Adjusted Operating Return on Equity
Unum US	19.9		%	16.6		%	19.0		%	16.1		%	15.9		%	15.0		%
Unum UK	13.8		%	14.1		%	14.3		%	15.0		%	15.2		%	18.6		%
Colonial Life	17.7		%	17.1		%	18.2		%	17.2		%	16.2		%	17.4		%
Core Operating Segments	18.8		%	16.5		%	18.4		%	16.2		%	15.9		%	15.9		%
Consolidated	13.7		%	11.5		%	13.3		%	11.5		%	11.6		%	11.2		%



Traditional U.S. Life Insurance Companies' Statutory Results²
Net Gain from Operations, After Tax	$	253.2	$	187.2	$	744.6	$	592.5	$	812.4		$	884.6
Net Realized Investment Gain (Loss), After Tax	7.6		3.1		8.7		2.5		(5.0		)	(29.5		)

Net Income	$	260.8	$	190.3	$	753.3	$	595.0	$	807.4		$	855.1

Capital and Surplus					$	3,569.1	$	3,683.6	$	3,448.3		$	3,626.9

Weighted Average Risk-based Capital Ratio					~ 385%		~ 410%		~ 390%			~ 400%

¹Generally Accepted Accounting Principles

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

Unum Group Capital Metrics



	9/30/2018						9/30/2017						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)	$	8,518.2		$	38.95		$	9,448.6		$	42.11		$	9,574.9		$	43.02		$	8,968.0		$	39.02
Excluding:
Net Unrealized Gain (Loss) on Securities	(340.7		)	(1.56		)	557.4			2.48			607.8			2.73			440.6			1.92
Net Gain on Hedges	250.0			1.15			290.7			1.30			282.3			1.27			327.5			1.42
Subtotal	8,608.9			39.36			8,600.5			38.33			8,684.8			39.02			8,199.9			35.68
Excluding:
Foreign Currency Translation Adjustment	(284.0		)	(1.30		)	(265.3		)	(1.18		)	(254.5		)	(1.15		)	(354.0		)	(1.54		)
Subtotal	8,892.9			40.66			8,865.8			39.51			8,939.3			40.17			8,553.9			37.22
Excluding:
Unrecognized Pension and Postretirement Benefit Costs	(493.8		)	(2.26		)	(458.5		)	(2.05		)	(508.1		)	(2.28		)	(465.1		)	(2.02		)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)	$	9,386.7		$	42.92		$	9,324.3		$	41.56		$	9,447.4		$	42.45		$	9,019.0		$	39.24

Dividends Paid	$	160.2		$	0.72		$	144.1		$	0.63		$	196.0		$	0.86		$	182.6		$	0.77



	Three Months Ended				Nine Months Ended						Year Ended
	9/30/2018		9/30/2017		9/30/2018			9/30/2017			12/31/2017			12/31/2016
Shares Repurchased (millions)	—		2.0		4.4			6.3			8.2			11.9
Cost of Shares Repurchased (millions)⁽¹⁾	$	—	$	100.2	$	200.3		$	300.3		$	400.4		$	403.3
Price (UNM closing price on last trading day of period)					$	39.07		$	51.13		$	54.89		$	43.93

Leverage Ratio					27.0		%	26.2		%	26.1		%	27.2		%

Holding Company Cash and Marketable Securities					$	973		$	771		$	864		$	594

⁽¹⁾Includes commissions of $0.1 million for three months ended September 30, 2017, and $0.2 million for the nine months ended September 30, 2018 and 2017. For the years ended December 31, 2017 and 2016, these amounts included commissions of $0.3 million and $0.2 million, respectively.

Unum Group Ratings



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

Issuer Credit Ratings	bbb	BBB	Baa2	BBB

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

NR = not rated

Unum Group Consolidated Statements of Operations



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Revenue
Premium Income	$	2,251.8		$	2,153.6		$	6,722.8		$	6,438.7		$	8,597.1		$	8,357.7
Net Investment Income	619.2			609.0			1,845.1			1,831.9			2,451.7			2,459.0
Net Realized Investment Gain	6.7			9.8			1.9			28.9			40.3			24.2
Other Income	50.1			46.7			147.9			148.1			197.7			205.6
Total Revenue	2,927.8			2,819.1			8,717.7			8,447.6			11,286.8			11,046.5

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	2,578.9			1,765.6			6,190.9			5,266.6			7,055.7			6,941.8
Commissions	276.8			262.4			832.6			793.9			1,060.8			1,026.7
Interest and Debt Expense - Non-recourse Debt	1.8			1.7			5.2			5.1			6.7			6.9
Interest and Debt Expense - All Other Debt	40.9			38.4			120.1			114.7			153.2			159.1
Deferral of Acquisition Costs	(166.8		)	(154.8		)	(501.8		)	(470.1		)	(628.0		)	(592.4		)
Amortization of Deferred Acquisition Costs	136.9			123.7			428.6			403.5			527.1			493.0
Other Expenses	437.1			415.3			1,324.0			1,275.2			1,707.3			1,663.7
Total Benefits and Expenses	3,305.6			2,452.3			8,399.6			7,388.9			9,882.8			9,698.8

Income (Loss) Before Income Tax Expense (Benefit)	(377.8		)	366.8			318.1			1,058.7			1,404.0			1,347.7
Income Tax Expense (Benefit)	(93.1		)	114.5			43.8			331.4			409.8			416.3

Net Income (Loss)	$	(284.7	)	$	252.3		$	274.3		$	727.3		$	994.2		$	931.4

Weighted Average Shares Outstanding
Basic	218.9			225.3			220.5			227.4			226.5			235.4
Assuming Dilution	218.9			226.0			220.9			228.2			227.3			236.0

Actual Number of Shares Outstanding							218.7			224.4			222.5			229.8

Unum Group Sales Data for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018		9/30/2017		% Change		9/30/2018		9/30/2017		% Change		12/31/2017		12/31/2016
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability	$	25.4	$	31.1	(18.3	)%	$	96.5	$	114.6	(15.8	)%	$	240.8	$	217.8
Group Short-term Disability	17.9		20.7		(13.5	)	57.8		65.0		(11.1	)	162.5		114.6
Group Life and AD&D	29.4		35.1		(16.2	)	128.5		131.8		(2.5	)	310.5		270.1
Subtotal	72.7		86.9		(16.3	)	282.8		311.4		(9.2	)	713.8		602.5
Supplemental and Voluntary
Individual Disability	20.1		20.4		(1.5	)	56.9		50.2		13.3		67.9		65.1
Voluntary Benefits	47.6		44.8		6.3		249.0		241.7		3.0		292.5		261.7
Dental and Vision	12.3		9.7		26.8		36.3		30.0		21.0		54.8		14.5
Subtotal	80.0		74.9		6.8		342.2		321.9		6.3		415.2		341.3
Total Sales	$	152.7	$	161.8	(5.6	)	$	625.0	$	633.3	(1.3	)	$	1,129.0	$	943.8

Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees)	$	55.9	$	65.5	(14.7	)%	$	191.7	$	212.1	(9.6	)%	$	416.9	$	378.1
Large Case Market	16.8		21.4		(21.5	)	91.1		99.3		(8.3	)	296.9		224.4
Subtotal	72.7		86.9		(16.3	)	282.8		311.4		(9.2	)	713.8		602.5
Supplemental and Voluntary	80.0		74.9		6.8		342.2		321.9		6.3		415.2		341.3
Total Sales	$	152.7	$	161.8	(5.6	)	$	625.0	$	633.3	(1.3	)	$	1,129.0	$	943.8

Unum Group Sales Data for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
(in millions of dollars)	9/30/2018		9/30/2017		% Change		9/30/2018		9/30/2017		% Change		12/31/2017		12/31/2016
Sales by Product
Group Long-term Disability	$	9.1	$	6.5	40.0	%	$	32.5	$	31.5	3.2	%	$	47.1	$	50.2
Group Life	5.6		7.8		(28.2	)	15.8		17.7		(10.7	)	24.4		23.8
Supplemental	2.2		2.2		—		14.0		12.2		14.8		14.4		10.5
Total Sales	$	16.9	$	16.5	2.4		$	62.3	$	61.4	1.5		$	85.9	$	84.5

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	$	7.8	$	6.1	27.9	%	$	26.3	$	21.6	21.8	%	$	30.4	$	42.0
Large Case Market	6.9		8.2		(15.9	)	22.0		27.6		(20.3	)	41.1		32.0
Subtotal	14.7		14.3		2.8		48.3		49.2		(1.8	)	71.5		74.0
Supplemental	2.2		2.2		—		14.0		12.2		14.8		14.4		10.5
Total Sales	$	16.9	$	16.5	2.4		$	62.3	$	61.4	1.5		$	85.9	$	84.5

(in millions of pounds)
Sales by Product
Group Long-term Disability	£	7.0	£	5.0	40.0	%	£	24.0	£	24.9	(3.6	)%	£	36.6	£	37.2
Group Life	4.3		6.1		(29.5	)	11.7		13.9		(15.8	)	18.9		17.8
Supplemental	1.7		1.6		6.3		10.2		9.6		6.3		11.3		7.7
Total Sales	£	13.0	£	12.7	2.4		£	45.9	£	48.4	(5.2	)	£	66.8	£	62.7

Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)	£	6.1	£	4.8	27.1	%	£	19.5	£	17.0	14.7	%	£	23.6	£	31.2
Large Case Market	5.2		6.3		(17.5	)	16.2		21.8		(25.7	)	31.9		23.8
Subtotal	11.3		11.1		1.8		35.7		38.8		(8.0	)	55.5		55.0
Supplemental	1.7		1.6		6.3		10.2		9.6		6.3		11.3		7.7
Total Sales	£	13.0	£	12.7	2.4		£	45.9	£	48.4	(5.2	)	£	66.8	£	62.7

5. 1

Unum Group Sales Data for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018		9/30/2017		% Change		9/30/2018		9/30/2017		% Change		12/31/2017		12/31/2016
Sales by Product
Accident, Sickness, and Disability	$	77.3	$	66.5	16.2	%	$	227.3	$	201.6	12.7	%	$	323.2	$	310.6
Life	24.2		22.6		7.1		73.1		68.4		6.9		107.7		94.0
Cancer and Critical Illness	19.3		17.8		8.4		56.5		49.9		13.2		88.8		79.0
Total Sales	$	120.8	$	106.9	13.0		$	356.9	$	319.9	11.6		$	519.7	$	483.6

Sales by Market Sector
Commercial
Core Market (< 1,000 employees)	$	76.2	$	64.5	18.1	%	$	230.0	$	201.2	14.3	%	$	313.5	$	291.3
Large Case Market	16.7		12.2		36.9		52.6		46.2		13.9		90.9		77.4
Subtotal	92.9		76.7		21.1		282.6		247.4		14.2		404.4		368.7
Public Sector	27.9		30.2		(7.6	)	74.3		72.5		2.5		115.3		114.9
Total Sales	$	120.8	$	106.9	13.0		$	356.9	$	319.9	11.6		$	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



	September 30		December 31
	2018		2017
Assets

Investments
Fixed Maturity Securities	$	43,071.3	$	45,457.8
Mortgage Loans	2,222.0		2,213.2
Policy Loans	3,720.2		3,571.1
Other Long-term Investments	694.2		646.8
Short-term Investments	1,238.2		1,155.1
Total Investments	50,945.9		53,044.0

Other Assets
Cash and Bank Deposits	214.2		77.4
Accounts and Premiums Receivable	1,693.0		1,665.7
Reinsurance Recoverable	4,684.0		4,879.2
Accrued Investment Income	683.0		690.1
Deferred Acquisition Costs	2,276.9		2,184.6
Goodwill	346.0		338.6
Property and Equipment	521.0		504.8
Income Tax Receivable	19.0		—
Deferred Income Tax	157.4		—
Other Assets	709.4		628.7

Total Assets	$	62,249.8	$	64,013.1

Unum Group Consolidated Balance Sheets - Continued



	September 30			December 31
	2018			2017
Liabilities and Stockholders' Equity

Liabilities
Policy and Contract Benefits	$	1,674.1		$	1,605.2
Reserves for Future Policy and Contract Benefits	45,092.7			45,601.6
Unearned Premiums	428.0			373.1
Other Policyholders’ Funds	1,551.4			1,595.0
Income Tax Payable	—			2.9
Deferred Income Tax	—			199.0
Short-term Debt	—			199.9
Long-term Debt - Non-recourse	151.8			196.0
Long-term Debt - All Other	2,831.7			2,542.4
Payables for Collateral on Investments	238.2			396.2
Other Liabilities	1,763.7			1,726.9

Total Liabilities	53,731.6			54,438.2

Stockholders’ Equity
Common Stock	30.5			30.5
Additional Paid-in Capital	2,314.3			2,303.3
Accumulated Other Comprehensive Income (Loss)	(868.5		)	127.5
Retained Earnings	9,670.8			9,542.2
Treasury Stock	(2,628.9		)	(2,428.6		)

Total Stockholders’ Equity	8,518.2			9,574.9

Total Liabilities and Stockholders’ Equity	$	62,249.8		$	64,013.1

6. 1

Unum Group Deferred Acquisition Costs by Segment



	Unum US			Unum UK			Colonial Life			Consolidated
Balances at December 31, 2016	$	1,176.5		$	21.4		$	896.3		$	2,094.2
Capitalization	325.5			7.0			295.5			628.0
Amortization	(293.6		)	(9.1		)	(224.4		)	(527.1		)
Adjustment Related to Unrealized Investment 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	259.1			5.3			237.4			501.8
Amortization	(241.4		)	(6.2		)	(181.0		)	(428.6		)
Adjustment Related to Unrealized Investment Gains	4.7			—			15.2			19.9
Foreign Currency	—			(0.8		)	—			(0.8		)
Balances at September 30, 2018	$	1,227.8		$	19.6		$	1,029.5		$	2,276.9

6. 2

Unum Group Balance Sheets by Segment - September 30, 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	$	8,104.1	$	2,192.6		$	4,583.6	$	14,880.3	$	2,918.3	$	2,953.2	$	28,432.9		$	1,761.2		$	50,945.9
Deferred Acquisition Costs	100.0		80.1			1,047.7		1,227.8		19.6		1,029.5		—			—			2,276.9
Goodwill	8.8		—			271.1		279.9		38.4		27.7		—			—			346.0
All Other	284.3		256.6			368.2		909.1		235.0		134.8		5,927.6			1,474.5			8,681.0
Total Assets	$	8,497.2	$	2,529.3		$	6,270.6	$	17,297.1	$	3,211.3	$	4,145.2	$	34,360.5		$	3,235.7		$	62,249.8

Liabilities
Reserves and Policyholder Benefits	$	7,024.4	$	1,703.2		$	4,000.3	$	12,727.9	$	2,537.2	$	2,545.0	$	30,936.1		$	—		$	48,746.2
Debt	—		—			—		—		—		—		151.8			2,831.7			2,983.5
All Other	25.8		14.2			192.1		232.1		34.1		59.1		201.5			1,475.1			2,001.9
Total Liabilities	7,050.2		1,717.4			4,192.4		12,960.0		2,571.3		2,604.1		31,289.4			4,306.8			53,731.6

Allocated Stockholders' Equity
Other Allocated Stockholders' Equity	1,447.0		825.8			2,035.5		4,308.3		622.1		1,498.9		3,128.5			(948.9		)	8,608.9
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges	—		(13.9		)	42.7		28.8		17.9		42.2		(57.4		)	(122.2		)	(90.7		)
Total Allocated Stockholders' Equity	1,447.0		811.9			2,078.2		4,337.1		640.0		1,541.1		3,071.1			(1,071.1		)	8,518.2

Total Liabilities and Allocated Stockholders' Equity	$	8,497.2	$	2,529.3		$	6,270.6	$	17,297.1	$	3,211.3	$	4,145.2	$	34,360.5		$	3,235.7		$	62,249.8

Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with 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. 3

Unum Group Balance Sheets by Segment - December 31, 2017



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

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

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

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

6. 4

Unum Group Financial Results by Segment

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



	Three Months Ended						Nine Months Ended
	9/30/2018		9/30/2017		% Change		9/30/2018		9/30/2017		% Change
Premium Income
Unum US	$	1,446.2	$	1,360.9	6.3	%	$	4,301.3	$	4,079.0	5.4	%
Unum UK	138.0		131.5		4.9		416.5		379.6		9.7
Colonial Life	400.0		378.7		5.6		1,193.7		1,129.3		5.7
Closed Block	267.6		282.5		(5.3	)	811.3		850.8		(4.6	)
	2,251.8		2,153.6		4.6		6,722.8		6,438.7		4.4
Net Investment Income
Unum US	200.3		201.0		(0.3	)	591.0		609.1		(3.0	)
Unum UK	26.4		28.5		(7.4	)	86.1		88.3		(2.5	)
Colonial Life	36.7		36.0		1.9		114.2		107.8		5.9
Closed Block	348.0		337.2		3.2		1,031.3		1,012.5		1.9
Corporate	7.8		6.3		23.8		22.5		14.2		58.5
	619.2		609.0		1.7		1,845.1		1,831.9		0.7
Other Income
Unum US	30.7		26.5		15.8		88.5		85.3		3.8
Unum UK	—		0.6		N.M.		—		0.6		N.M.
Colonial Life	0.4		0.3		33.3		1.0		0.8		25.0
Closed Block	18.9		18.9		—		56.8		59.9		(5.2	)
Corporate	0.1		0.4		(75.0	)	1.6		1.5		6.7
	50.1		46.7		7.3		147.9		148.1		(0.1	)
Total Adjusted Operating Revenue
Unum US	1,677.2		1,588.4		5.6		4,980.8		4,773.4		4.3
Unum UK	164.4		160.6		2.4		502.6		468.5		7.3
Colonial Life	437.1		415.0		5.3		1,308.9		1,237.9		5.7
Closed Block	634.5		638.6		(0.6	)	1,899.4		1,923.2		(1.2	)
Corporate	7.9		6.7		17.9		24.1		15.7		53.5
	$	2,921.1	$	2,809.3	4.0		$	8,715.8	$	8,418.7	3.5

Unum Group Financial Results by Segment - Continued



	Three Months Ended								Nine Months Ended
	9/30/2018			9/30/2017			% Change		9/30/2018			9/30/2017			% Change
Benefits and Expenses
Unum US	$	1,406.3		$	1,330.0		5.7	%	$	4,214.9		$	4,028.1		4.6	%
Unum UK	138.3			134.1			3.1		419.1			386.5			8.4
Colonial Life	352.9			333.3			5.9		1,059.1			992.0			6.8
Closed Block	1,353.1			612.0			121.1		2,559.5			1,832.4			39.7
Corporate	55.0			42.9			28.2		147.0			149.9			(1.9	)
	3,305.6			2,452.3			34.8		8,399.6			7,388.9			13.7
Income (Loss) Before Income Tax Expense (Benefit) and Net Realized Investment Gain
Unum US	270.9			258.4			4.8		765.9			745.3			2.8
Unum UK	26.1			26.5			(1.5	)	83.5			82.0			1.8
Colonial Life	84.2			81.7			3.1		249.8			245.9			1.6
Closed Block	(718.6		)	26.6			N.M.		(660.1		)	90.8			N.M.
Corporate	(47.1		)	(36.2		)	30.1		(122.9		)	(134.2		)	(8.4	)
	(384.5		)	357.0			N.M.		316.2			1,029.8			(69.3	)

Income Tax Expense (Benefit)	(92.0		)	110.9			(183.0	)	46.0			320.6			(85.7	)

Income (Loss) Before Net Realized Investment Gain	(292.5		)	246.1			N.M.		270.2			709.2			(61.9	)

Net Realized Investment Gain (net of tax expense (benefit) of $(1.1); $3.6; $(2.2); $10.8)	7.8			6.2			25.8		4.1			18.1			(77.3	)

Net Income (Loss)	$	(284.7	)	$	252.3		N.M.		$	274.3		$	727.3		(62.3	)

7. 1

Unum Group Quarterly Historical Financial Results by Segment



	9/30/18		6/30/18		3/31/18		12/31/17		9/30/17		6/30/17		3/31/17		12/31/16		9/30/16
Premium Income
Unum US	$	1,446.2	$	1,416.3	$	1,438.8	$	1,364.5	$	1,360.9	$	1,357.7	$	1,360.4	$	1,325.2	$	1,315.0
Unum UK	138.0		138.9		139.6		133.4		131.5		126.8		121.3		121.9		127.3
Colonial Life	400.0		395.4		398.3		382.1		378.7		376.3		374.3		360.4		354.1
Closed Block	267.6		270.4		273.3		278.4		282.5		281.4		286.9		291.7		293.0
	2,251.8		2,221.0		2,250.0		2,158.4		2,153.6		2,142.2		2,142.9		2,099.2		2,089.4
Net Investment Income
Unum US	200.3		196.5		194.2		202.1		201.0		205.6		202.5		206.3		207.3
Unum UK	26.4		32.1		27.6		31.9		28.5		33.2		26.6		28.8		28.5
Colonial Life	36.7		40.2		37.3		37.1		36.0		36.7		35.1		35.8		36.1
Closed Block	348.0		345.6		337.7		341.5		337.2		340.0		335.3		343.6		334.1
Corporate	7.8		9.2		5.5		7.2		6.3		5.0		2.9		3.4		5.4
	619.2		623.6		602.3		619.8		609.0		620.5		602.4		617.9		611.4
Other Income
Unum US	30.7		28.8		29.0		27.9		26.5		30.1		28.7		27.7		28.7
Unum UK	—		—		—		0.1		0.6		—		—		—		—
Colonial Life	0.4		0.3		0.3		0.3		0.3		0.2		0.3		0.2		0.4
Closed Block	18.9		18.9		19.0		19.9		18.9		20.2		20.8		20.7		21.5
Corporate	0.1		0.3		1.2		1.4		0.4		0.7		0.4		2.4		0.9
	50.1		48.3		49.5		49.6		46.7		51.2		50.2		51.0		51.5
Total Adjusted Operating Revenue
Unum US	1,677.2		1,641.6		1,662.0		1,594.5		1,588.4		1,593.4		1,591.6		1,559.2		1,551.0
Unum UK	164.4		171.0		167.2		165.4		160.6		160.0		147.9		150.7		155.8
Colonial Life	437.1		435.9		435.9		419.5		415.0		413.2		409.7		396.4		390.6
Closed Block	634.5		634.9		630.0		639.8		638.6		641.6		643.0		656.0		648.6
Corporate	7.9		9.5		6.7		8.6		6.7		5.7		3.3		5.8		6.3
	2,921.1		2,892.9		2,901.8		2,827.8		2,809.3		2,813.9		2,795.5		2,768.1		2,752.3

Unum Group Quarterly Historical Financial Results by Segment - Continued



	9/30/18			6/30/18			3/31/18			12/31/17			9/30/17			6/30/17			3/31/17			12/31/16			9/30/16
Benefits and Expenses
Unum US	1,406.3			1,390.5			1,418.1			1,356.9			1,330.0			1,345.6			1,352.5			1,319.1			1,320.0
Unum UK	138.3			143.4			137.4			135.7			134.1			131.1			121.3			120.8			127.6
Colonial Life	352.9			351.3			354.9			352.8			333.3			331.4			327.3			316.5			311.6
Closed Block	1,353.1			605.3			601.1			606.7			612.0			609.0			611.4			621.4			620.0
Corporate	55.0			45.0			47.0			41.8			42.9			43.3			63.7			47.5			52.0
	3,305.6			2,535.5			2,558.5			2,493.9			2,452.3			2,460.4			2,476.2			2,425.3			2,431.2
Income (Loss) Before Income Tax Expense (Benefit) and Net Realized Investment Gain (Loss)
Unum US	270.9			251.1			243.9			237.6			258.4			247.8			239.1			240.1			231.0
Unum UK	26.1			27.6			29.8			29.7			26.5			28.9			26.6			29.9			28.2
Colonial Life	84.2			84.6			81.0			66.7			81.7			81.8			82.4			79.9			79.0
Closed Block	(718.6		)	29.6			28.9			33.1			26.6			32.6			31.6			34.6			28.6
Corporate	(47.1		)	(35.5		)	(40.3		)	(33.2		)	(36.2		)	(37.6		)	(60.4		)	(41.7		)	(45.7		)
	(384.5		)	357.4			343.3			333.9			357.0			353.5			319.3			342.8			321.1

Income Tax Expense (Benefit)	(92.0		)	69.8			68.2			74.2			110.9			113.1			96.6			113.1			92.4

Income (Loss) Before Net Realized Investment Gain (Loss)	(292.5		)	287.6			275.1			259.7			246.1			240.4			222.7			229.7			228.7

Net Realized Investment Gain (Loss)	6.7			(2.6		)	(2.2		)	11.4			9.8			8.1			11.0			28.4			11.0
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)	(1.1		)	(0.5		)	(0.6		)	4.2			3.6			3.4			3.8			10.1			3.7
Net Income (Loss)	$	(284.7	)	$	285.5		$	273.5		$	266.9		$	252.3		$	245.1		$	229.9		$	248.0		$	236.0

Net Income (Loss) Per Common Share - Assuming Dilution	$	(1.30	)	$	1.29		$	1.23		$	1.19		$	1.12		$	1.07		$	1.00		$	1.07		$	1.01

8. 1

Unum Group Financial Results for Unum US Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income	$	1,446.2		$	1,360.9		$	4,301.3		$	4,079.0		$	5,443.5		$	5,240.9
Net Investment Income	200.3			201.0			591.0			609.1			811.2			828.7
Other Income	30.7			26.5			88.5			85.3			113.2			113.3
Total	1,677.2			1,588.4			4,980.8			4,773.4			6,367.9			6,182.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	975.7			920.7			2,885.9			2,759.8			3,693.4			3,624.3
Commissions	154.4			144.1			467.5			442.0			590.8			580.4
Deferral of Acquisition Costs	(84.6		)	(78.2		)	(259.1		)	(244.0		)	(325.5		)	(314.1		)
Amortization of Deferred Acquisition Costs	73.7			65.2			241.4			228.3			293.6			275.2
Other Expenses	287.1			278.2			879.2			842.0			1,132.7			1,102.9
Total	1,406.3			1,330.0			4,214.9			4,028.1			5,385.0			5,268.7

Income Before Income Tax and Net Realized Investment Gains and Losses	270.9			258.4			765.9			745.3			982.9			914.2
Unclaimed Death Benefits (UDB) Reserve Increase	—			—			—			—			26.6			—
Adjusted Operating Income	$	270.9		$	258.4		$	765.9		$	745.3		$	1,009.5		$	914.2

Operating Ratios (% of Premium Income):
Benefit Ratio	67.5		%	67.7		%	67.1		%	67.7		%	67.8		%	69.2		%
Benefit Ratio Excluding UDB Reserve Increase													67.4		%
Other Expense Ratio	19.9		%	20.4		%	20.4		%	20.6		%	20.8		%	21.0		%
Income Ratio	18.7		%	19.0		%	17.8		%	18.3		%	18.1		%	17.4		%
Adjusted Operating Income Ratio													18.5		%

Unum Group Financial Results for Unum US Group Disability



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Long-term Disability	$	444.1		$	435.2		$	1,322.7		$	1,307.3		$	1,749.6		$	1,726.6
Group Short-term Disability	180.4			161.1			527.7			477.3			639.8			626.1
Total Premium Income	624.5			596.3			1,850.4			1,784.6			2,389.4			2,352.7
Net Investment Income	112.9			113.7			330.0			347.3			460.5			479.5
Other Income	28.0			23.8			80.9			73.4			98.3			91.1
Total	765.4			733.8			2,261.3			2,205.3			2,948.2			2,923.3

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	476.2			457.1			1,406.8			1,366.8			1,828.5			1,863.8
Commissions	46.7			45.8			141.0			137.1			181.9			178.2
Deferral of Acquisition Costs	(12.1		)	(12.4		)	(36.8		)	(35.8		)	(46.9		)	(46.4		)
Amortization of Deferred Acquisition Costs	11.2			10.0			33.6			29.9			39.9			35.9
Other Expenses	150.4			143.3			459.1			436.2			587.0			572.1
Total	672.4			643.8			2,003.7			1,934.2			2,590.4			2,603.6

Adjusted Operating Income	$	93.0		$	90.0		$	257.6		$	271.1		$	357.8		$	319.7

Operating Ratios (% of Premium Income):
Benefit Ratio	76.3		%	76.7		%	76.0		%	76.6		%	76.5		%	79.2		%
Other Expense Ratio	24.1		%	24.0		%	24.8		%	24.4		%	24.6		%	24.3		%
Adjusted Operating Income Ratio	14.9		%	15.1		%	13.9		%	15.2		%	15.0		%	13.6		%

Persistency:
Group Long-term Disability							91.0		%	89.5		%	89.9		%	91.0		%
Group Short-term Disability							88.2		%	86.3		%	86.6		%	87.7		%

9. 1

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



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Life	$	399.3		$	370.0		$	1,189.6		$	1,101.7		$	1,467.5		$	1,410.0
Accidental Death & Dismemberment	39.6			37.2			116.9			110.5			147.5			140.3
Total Premium Income	438.9			407.2			1,306.5			1,212.2			1,615.0			1,550.3
Net Investment Income	26.4			27.3			80.4			82.7			109.9			113.4
Other Income	1.2			1.4			3.4			3.6			4.8			4.5
Total	466.5			435.9			1,390.3			1,298.5			1,729.7			1,668.2

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	315.3			290.6			927.1			864.1			1,169.8			1,112.6
Commissions	34.9			33.3			106.5			98.0			131.3			126.8
Deferral of Acquisition Costs	(9.5		)	(9.5		)	(29.4		)	(27.6		)	(36.2		)	(35.7		)
Amortization of Deferred Acquisition Costs	9.0			7.9			27.0			23.9			31.9			29.2
Other Expenses	52.8			53.5			163.3			163.1			217.4			213.5
Total	402.5			375.8			1,194.5			1,121.5			1,514.2			1,446.4

Income Before Income Tax and Net Realized Investment Gains and Losses	64.0			60.1			195.8			177.0			215.5			221.8
UDB Reserve Increase	—			—			—			—			18.5			—
Adjusted Operating Income	$	64.0		$	60.1		$	195.8		$	177.0		$	234.0		$	221.8

Operating Ratios (% of Premium Income):
Benefit Ratio	71.8		%	71.4		%	71.0		%	71.3		%	72.4		%	71.8		%
Benefit Ratio Excluding UDB Reserve Increase													71.3		%
Other Expense Ratio	12.0		%	13.1		%	12.5		%	13.5		%	13.5		%	13.8		%
Income Ratio	14.6		%	14.8		%	15.0		%	14.6		%	13.3		%	14.3		%
Adjusted Operating Income Ratio													14.5		%

Persistency:
Group Life							91.2		%	87.7		%	88.0		%	90.7		%
Accidental Death & Dismemberment							90.0		%	86.8		%	87.2		%	90.3		%

9. 2

Unum Group Financial Results for Unum US Supplemental and Voluntary



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Individual Disability	$	109.5		$	104.4		$	319.1		$	318.1		$	420.2		$	480.3
Voluntary Benefits	222.3			210.8			676.0			639.2			849.4			796.5
Dental and Vision	51.0			42.2			149.3			124.9			169.5			61.1
Total Premium Income	382.8			357.4			1,144.4			1,082.2			1,439.1			1,337.9
Net Investment Income	61.0			60.0			180.6			179.1			240.8			235.8
Other Income	1.5			1.3			4.2			8.3			10.1			17.7
Total	445.3			418.7			1,329.2			1,269.6			1,690.0			1,591.4

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	184.2			173.0			552.0			528.9			695.1			647.9
Commissions	72.8			65.0			220.0			206.9			277.6			275.4
Deferral of Acquisition Costs	(63.0		)	(56.3		)	(192.9		)	(180.6		)	(242.4		)	(232.0		)
Amortization of Deferred Acquisition Costs	53.5			47.3			180.8			174.5			221.8			210.1
Other Expenses	83.9			81.4			256.8			242.7			328.3			317.3
Total	331.4			310.4			1,016.7			972.4			1,280.4			1,218.7

Income Before Income Tax and Net Realized Investment Gains and Losses	113.9			108.3			312.5			297.2			409.6			372.7
UDB Reserve Increase	—			—			—			—			8.1			—
Adjusted Operating Income	$	113.9		$	108.3		$	312.5		$	297.2		$	417.7		$	372.7

Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability	50.4		%	48.3		%	50.5		%	51.4		%	47.2		%	52.9		%
Voluntary Benefits	42.2		%	44.1		%	42.6		%	43.2		%	44.6		%	44.3		%
Voluntary Benefits Excluding UDB Reserve Increase													43.6		%
Dental and Vision	68.8		%	70.1		%	68.9		%	71.3		%	69.6		%	66.6		%
Other Expense Ratio	21.9		%	22.8		%	22.4		%	22.4		%	22.8		%	23.7		%
Income Ratio	29.8		%	30.3		%	27.3		%	27.5		%	28.5		%	27.9		%
Adjusted Operating Income Ratio													29.0		%

Persistency:
Individual Disability							90.3		%	91.1		%	91.0		%	91.1		%
Voluntary Benefits							76.5		%	76.8		%	77.5		%	76.9		%
Dental and Vision							84.5		%	84.2		%	85.4		%	84.6		%

9. 3

Unum Group Financial Results for Unum UK Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Long-term Disability	$	91.3		$	87.0		$	271.8		$	251.6		$	340.3		$	355.2
Group Life	27.1			26.7			83.6			76.9			103.1			105.7
Supplemental	19.6			17.8			61.1			51.1			69.6			68.4
Total Premium Income	138.0			131.5			416.5			379.6			513.0			529.3
Net Investment Income	26.4			28.5			86.1			88.3			120.2			118.1
Other Income	—			0.6			—			0.6			0.7			0.2
Total	164.4			160.6			502.6			468.5			633.9			647.6

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	102.6			98.4			309.5			280.9			381.9			367.4
Commissions	9.1			9.2			28.1			27.0			35.5			38.9
Deferral of Acquisition Costs	(1.4		)	(1.6		)	(5.3		)	(5.4		)	(7.0		)	(8.2		)
Amortization of Deferred Acquisition Costs	2.0			2.3			6.2			6.8			9.1			9.7
Other Expenses	26.0			25.8			80.6			77.2			102.7			111.2
Total	138.3			134.1			419.1			386.5			522.2			519.0

Adjusted Operating Income	$	26.1		$	26.5		$	83.5		$	82.0		$	111.7		$	128.6

Unum Group Financial Results for Unum UK Segment - Continued



	Three Months Ended						Nine Months Ended						Year Ended
(in millions of pounds, except exchange rate)	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Group Long-term Disability	£	70.0		£	66.4		£	201.2		£	197.1		£	264.0		£	262.0
Group Life	20.8			20.3			61.9			60.2			80.0			78.0
Supplemental	15.2			13.7			45.3			40.1			53.9			50.5
Total Premium Income	106.0			100.4			308.4			297.4			397.9			390.5
Net Investment Income	20.2			21.8			63.6			69.2			93.3			87.3
Other Income	—			0.5			—			0.5			0.5			0.1
Total	126.2			122.7			372.0			367.1			491.7			477.9

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	78.7			75.2			229.1			220.0			296.2			270.9
Commissions	7.0			6.9			20.8			21.1			27.6			28.9
Deferral of Acquisition Costs	(1.0		)	(1.2		)	(3.9		)	(4.2		)	(5.4		)	(6.1		)
Amortization of Deferred Acquisition Costs	1.5			1.8			4.6			5.3			7.0			7.2
Other Expenses	20.0			19.8			59.6			60.7			79.7			82.2
Total	106.2			102.5			310.2			302.9			405.1			383.1

Adjusted Operating Income	£	20.0		£	20.2		£	61.8		£	64.2		£	86.6		£	94.8

Weighted Average Pound/Dollar Exchange Rate	1.305			1.312			1.351			1.277			1.290			1.357

Operating Ratios (% of Premium Income):
Benefit Ratio	74.2		%	74.9		%	74.3		%	74.0		%	74.4		%	69.4		%
Other Expense Ratio	18.9		%	19.7		%	19.3		%	20.4		%	20.0		%	21.0		%
Adjusted Operating Income Ratio	18.9		%	20.1		%	20.0		%	21.6		%	21.8		%	24.3		%

Persistency:
Group Long-term Disability							87.5		%	87.1		%	87.4		%	89.5		%
Group Life							85.5		%	83.5		%	84.1		%	81.3		%
Supplemental							92.9		%	89.5		%	91.0		%	89.9		%

10. 1

Unum Group Financial Results for Colonial Life Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	231.9		$	222.3		$	691.8		$	661.5		$	884.2		$	830.0
Life	81.4			74.6			243.9			223.8			300.4			273.8
Cancer and Critical Illness	86.7			81.8			258.0			244.0			326.8			313.3
Total Premium Income	400.0			378.7			1,193.7			1,129.3			1,511.4			1,417.1
Net Investment Income	36.7			36.0			114.2			107.8			144.9			141.5
Other Income	0.4			0.3			1.0			0.8			1.1			1.2
Total	437.1			415.0			1,308.9			1,237.9			1,657.4			1,559.8

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	206.1			196.1			613.4			579.2			788.6			726.4
Commissions	92.4			86.4			273.7			256.8			344.5			313.6
Deferral of Acquisition Costs	(80.8		)	(75.0		)	(237.4		)	(220.7		)	(295.5		)	(270.1		)
Amortization of Deferred Acquisition Costs	61.2			56.2			181.0			168.4			224.4			208.1
Other Expenses	74.0			69.6			228.4			208.3			282.8			267.6
Total	352.9			333.3			1,059.1			992.0			1,344.8			1,245.6

Income Before Income Tax and Net Realized Investment Gains and Losses	84.2			81.7			249.8			245.9			312.6			314.2
UDB Reserve Increase	—			—			—			—			12.4			—
Adjusted Operating Income	$	84.2		$	81.7		$	249.8		$	245.9		$	325.0		$	314.2

Operating Ratios (% of Premium Income):
Benefit Ratio	51.5		%	51.8		%	51.4		%	51.3		%	52.2		%	51.3		%
Benefit Ratio Excluding UDB Reserve Increase													51.4		%
Other Expense Ratio	18.5		%	18.4		%	19.1		%	18.4		%	18.7		%	18.9		%
Income Ratio	21.1		%	21.6		%	20.9		%	21.8		%	20.7		%	22.2		%
Adjusted Operating Income Ratio													21.5		%

Persistency:
Accident, Sickness, and Disability							73.8		%	75.4		%	75.1		%	75.6		%
Life							83.7		%	84.5		%	84.4		%	85.0		%
Cancer and Critical Illness							82.4		%	82.6		%	82.7		%	82.9		%

Unum Group Financial Results for Closed Block Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Premium Income
Individual Disability	$	102.7		$	117.9		$	319.0		$	357.7		$	471.8		$	521.9
Long-term Care	163.0			162.4			485.8			486.4			648.7			643.9
All Other	1.9			2.2			6.5			6.7			8.7			4.6
Total Premium Income	267.6			282.5			811.3			850.8			1,129.2			1,170.4
Net Investment Income	348.0			337.2			1,031.3			1,012.5			1,354.0			1,352.2
Other Income	18.9			18.9			56.8			59.9			79.8			86.0
Total	634.5			638.6			1,899.4			1,923.2			2,563.0			2,608.6

Benefits and Expenses
Benefits and Change in Reserves for Future Benefits	1,294.5			550.4			2,382.1			1,646.7			2,191.8			2,223.7
Commissions	20.9			22.7			63.3			68.1			90.0			93.8
Interest and Debt Expense	1.8			1.7			5.2			5.1			6.7			6.9
Other Expenses	35.9			37.2			108.9			112.5			150.6			154.7
Total	1,353.1			612.0			2,559.5			1,832.4			2,439.1			2,479.1

Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses	(718.6		)	26.6			(660.1		)	90.8			123.9			129.5
Long-term Care Reserve Increase	750.8			—			750.8			—			—			—
Adjusted Operating Income	$	32.2		$	26.6		$	90.7		$	90.8		$	123.9		$	129.5

Interest Adjusted Loss Ratios:
Individual Disability	80.5		%	82.4		%	80.1		%	82.8		%	82.4		%	83.6		%
Long-term Care	548.2		%	93.3		%	248.2		%	90.5		%	91.1		%	91.1		%
Long-term Care Excluding the Reserve Increase	87.5		%				93.7		%

Operating Ratios (% of Premium Income):
Other Expense Ratio	13.4		%	13.2		%	13.4		%	13.2		%	13.3		%	13.2		%
Income (Loss) Ratio	(268.5		)%	9.4		%	(81.4		)%	10.7		%	11.0		%	11.1		%
Adjusted Operating Income Ratio	12.0		%				11.2		%

Persistency:
Individual Disability							88.7		%	89.8		%	89.6		%	90.9		%
Long-term Care							95.6		%	95.5		%	95.9		%	94.8		%

Unum Group Financial Results for Corporate Segment



	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017			12/31/2017			12/31/2016
Adjusted Operating Revenue
Net Investment Income	$	7.8		$	6.3		$	22.5		$	14.2		$	21.4		$	18.5
Other Income	0.1			0.4			1.6			1.5			2.9			4.9
Total	7.9			6.7			24.1			15.7			24.3			23.4

Interest and Other Expenses	55.0			42.9			147.0			149.9			191.7			186.4

Loss Before Income Tax and Net Realized Investment Gains and Losses	(47.1		)	(36.2		)	(122.9		)	(134.2		)	(167.4		)	(163.0		)
Loss from Guaranty Fund Assessment	—			—			—			20.6			20.6			—
Adjusted Operating Loss	$	(47.1	)	$	(36.2	)	$	(122.9	)	$	(113.6	)	$	(146.8	)	$	(163.0	)

Unum Group Reserves



	September 30, 2018
	Gross													Total
	Policy				Claim Reserves									Reinsurance		Total
	Reserves		%		Incurred			IBNR		%		Total		Ceded		Net
Group Disability	$	—	—	%	$	5,919.9		$	668.9	28.3	%	$	6,588.8	$	71.4	$	6,517.4
Group Life and Accidental Death & Dismemberment	53.7		0.3		737.7			223.8		4.1		1,015.2		5.7		1,009.5
Individual Disability	520.8		2.6		1,349.1			135.6		6.4		2,005.5		213.8		1,791.7
Voluntary Benefits	1,622.7		8.1		47.1			62.7		0.5		1,732.5		26.9		1,705.6
Dental and Vision	—		—		(1.0		)	11.4		0.1		10.4		0.2		10.2
Unum US Segment	2,197.2		11.0		8,052.8			1,102.4		39.4		11,352.4		318.0		11,034.4

Unum UK Segment	17.1		0.1		1,919.4			63.6		8.5		2,000.1		85.9		1,914.2

Colonial Life Segment	2,076.0		10.5		290.9			135.0		1.8		2,501.9		8.2		2,493.7

Individual Disability	351.6		1.8		9,161.9			207.3		40.3		9,720.8		1,634.4		8,086.4
Long-term Care	9,308.1		47.0		1,805.9			212.5		8.7		11,326.5		40.3		11,286.2
Other	5,874.9		29.6		178.0			127.3		1.3		6,180.2		5,108.8		1,071.4
Closed Block Segment	15,534.6		78.4		11,145.8			547.1		50.3		27,227.5		6,783.5		20,444.0

Subtotal	$	19,824.9	100.0	%	$	21,408.9		$	1,848.1	100.0	%	43,081.9		7,195.6		35,886.3

Adjustment Related to Unrealized Investment Gains and Losses												3,684.9		273.3		3,411.6

Consolidated												$	46,766.8	$	7,468.9	$	39,297.9

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

Unum Group Reserves



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

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

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

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

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

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

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

14. 1

Unum Group Investments



	9/30/2018						9/30/2018			12/31/2017
Fixed Maturity Securities (Fair Value)
Public	$	27,921.6		64.8	%	Selected Statistics
Asset-Backed Securities	65.8			0.2		Earned Book Yield	5.17		%	5.23		%
Residential Mortgage-Backed Securities (1)	1,479.2			3.4		Average Duration (in years)	7.58			7.70
Commercial Mortgage-Backed Securities	82.0			0.2
Private Placements	5,363.3			12.4
High Yield	3,221.1			7.5
Government Securities	2,577.9			6.0
Municipal Securities (2)	2,320.0			5.4
Redeemable Preferred Stocks	40.4			0.1
Total	$	43,071.3		100.0	%

	Amortized Cost			Fair Value
Quality Ratings of Fixed Maturity Securities						Schedule BA and Non-Current
Aaa	8.5		%	8.3	%	Total Non-Current Investments	$	35.8		$	32.9
Aa	7.4			7.9		Total Schedule BA Assets	$	567.3		$	535.4
A	26.5			27.6
Baa	49.5			48.7
Below Baa	8.1			7.5
Total	100.0		%	100.0	%

(1) Includes $8.8 million of high yield mortgage-backed securities.
(2) Includes $1.5 million of high yield taxable municipal securities.

Unum Group Investments at September 30, 2018



Fixed Maturity Securities - By Industry Classification - Unrealized Gains and Losses
Classification	Fair Value		Net Unrealized Gain		Fair Value of Fixed Maturity Securities with Gross Unrealized Loss		Gross Unrealized Loss		Fair Value of Fixed Maturity Securities with Gross Unrealized Gain		Gross Unrealized Gain
Basic Industry	$	2,852.3	$	131.9	$	1,070.2	$	43.7	$	1,782.1	$	175.6
Capital Goods	4,073.7		267.2		1,091.4		55.8		2,982.3		323.0
Communications	2,854.1		263.6		713.1		32.3		2,141.0		295.9
Consumer Cyclical	1,355.6		70.0		467.7		12.3		887.9		82.3
Consumer Non-Cyclical	6,596.8		338.3		2,498.8		132.7		4,098.0		471.0
Energy	4,661.8		410.4		930.2		37.3		3,731.6		447.7
Financial Institutions	3,227.6		141.5		1,069.2		34.2		2,158.4		175.7
Mortgage/Asset-Backed	1,627.0		36.0		728.3		21.1		898.7		57.1
Sovereigns	798.4		154.3		46.7		1.7		751.7		156.0
Technology	1,541.5		37.2		548.7		14.8		992.8		52.0
Transportation	1,993.1		151.4		625.3		22.0		1,367.8		173.4
U.S. Government Agencies and Municipalities	4,099.5		358.6		965.3		35.3		3,134.2		393.9
Public Utilities	7,389.9		797.7		861.8		53.4		6,528.1		851.1
Total	$	43,071.3	$	3,158.1	$	11,616.7	$	496.6	$	31,454.6	$	3,654.7

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	$	2,269.5	$	25.9			$	230.0	$	2.3
91 through 180 days	2,246.0		61.7				200.6		6.9
181 through 270 days	3,526.9		158.2				501.5		19.5
271 days to 1 year	651.3		58.1				158.1		11.5
Greater than 1 year	1,456.7		107.3				376.1		45.2
Total	$	10,150.4	$	411.2			$	1,466.3	$	85.4

15. 1

Appendix to Statistical Supplement

2018 Significant Items

•

In October of 2018, we completed our purchase of Pramerica Zycie TUiR SA ("Pramerica"), a financial protection benefits provider in Poland. The acquisition of Pramerica will expand our European presence, which we believe to be an attractive market for financial protection benefits. This acquisition is not expected to materially impact our results of operations or financial position for 2018 or alter our share repurchase and common stock dividend strategy.


•	Third quarter of 2018 reserve increase of $750.8 million before tax and $593.1 million after tax related to long-term care.

•

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

2017 Significant Items


•	Fourth quarter of 2017 unclaimed death benefit reserve increase of $18.5 million for Unum US group life, $8.1 million for Unum US voluntary life and $12.4 million for Colonial Life voluntary life, for a total reserve increase of $39.0 million before tax and $25.4 million after tax.

•

Fourth quarter of 2017 net tax benefit of $31.5 million resulting from H.R.1, An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, more commonly known as the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. This is comprised of a tax benefit of $97.9 million related to the revaluation of our net deferred tax liabilities associated with our U.S. operations to the newly enacted U.S. corporate tax rate and a tax expense of $66.4 million resulting from the tax on undistributed and previously untaxed foreign earnings and profits.


•	Fourth quarter of 2017 results for the Unum US individual disability product line reflects a reserve release of $19.5 million before tax and $12.7 million after tax, resulting from our annual review of reserve adequacy which reflects the recognition of updated morbidity assumptions in our disabled life reserves.


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

2016 Significant Item

•

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



	16

Appendix to Statistical Supplement - Continued

Non-GAAP Financial Measures

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


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


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


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


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


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


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

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

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

16. 1

Reconciliation of Non-GAAP Financial Measures



	Three Months Ended
	September 30		June 30			March 31			December 31		September 30		June 30		March 31		December 31		September 30
	2018								2017								2016
Total Revenue	$	2,927.8	$	2,890.3		$	2,899.6		$	2,839.2	$	2,819.1	$	2,822.0	$	2,806.5	$	2,796.5	$	2,763.3
Excluding:
Net Realized Investment Gain (Loss)	6.7		(2.6		)	(2.2		)	11.4		9.8		8.1		11.0		28.4		11.0
Adjusted Operating Revenue	$	2,921.1	$	2,892.9		$	2,901.8		$	2,827.8	$	2,809.3	$	2,813.9	$	2,795.5	$	2,768.1	$	2,752.3



							Annualized
	After-Tax Adjusted			Average			Adjusted Operating
	Operating			Allocated			Return
	Income (Loss)			Equity⁽¹⁾			On Equity
Three Months Ended September 30, 2018
Unum US	$	214.0		$	4,292.3		19.9	%
Unum UK	21.4			623.2			13.8	%
Colonial Life	66.4			1,498.3			17.7	%
Core Operating Segments	301.8			6,413.8			18.8	%
Closed Block	41.5			3,403.9
Corporate	(42.7		)	(1,035.7		)
Total	$	300.6		$	8,782.0		13.7	%

Three Months Ended September 30, 2017
Unum US	$	167.3		$	4,024.4		16.6	%
Unum UK	21.8			618.4			14.1	%
Colonial Life	53.2			1,247.8			17.1	%
Core Operating Segments	242.3			5,890.6			16.5	%
Closed Block	19.7			3,258.1
Corporate	(15.9		)	(621.5		)
Total	$	246.1		$	8,527.2		11.5	%

⁽¹⁾Excludes net unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.5.



	16. 2

Reconciliation of Non-GAAP Financial Measures - Continued



							Annualized
	After-Tax Adjusted			Average			Adjusted Operating
	Operating			Allocated			Return
	Income (Loss)			Equity⁽¹⁾			On Equity
Nine Months Ended September 30, 2018
Unum US	$	606.1		$	4,251.9		19.0	%
Unum UK	67.6			632.5			14.3	%
Colonial Life	197.5			1,444.1			18.2	%
Core Operating Segments	871.2			6,328.5			18.4	%
Closed Block	88.9			3,269.1
Corporate	(96.8		)	(943.5		)
Total	$	863.3		$	8,654.1		13.3	%

Nine Months Ended September 30, 2017
Unum US	$	485.4		$	4,014.6		16.1	%
Unum UK	67.5			601.0			15.0	%
Colonial Life	160.3			1,241.7			17.2	%
Core Operating Segments	713.2			5,857.3			16.2	%
Closed Block	63.0			3,236.3
Corporate	(53.6		)	(693.4		)
Total	$	722.6		$	8,400.2		11.5	%

⁽¹⁾Excludes net unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.5. Due to the implementation of a Financial Accounting Standards Board update for which the beginning balance of 2018 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2018 using internally allocated equity that reflects the adjusted beginning balance at January 1, 2018. As a result, average equity for the nine months ended September 30, 2018 for certain of our segments will not compute using the historical allocated equity at December 31, 2017.

16. 3

Reconciliation of Non-GAAP Financial Measures - Continued



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

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

⁽²⁾Excludes net unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.5.

16. 4

Reconciliation of Non-GAAP Financial Measures - Continued

Average allocated equity is computed as follows:



	9/30/2018			6/30/2018		12/31/2017		9/30/2017		6/30/2017		12/31/2016		12/31/2015
Total Stockholders' Equity	$	8,518.2		$	9,446.4	$	9,574.9	$	9,448.6	$	9,316.6	$	8,968.0	$	8,663.9
Excluding:
Net Unrealized Gain (Loss) on Securities	(340.7		)	224.5		607.8		557.4		558.2		440.6		204.3
Net Gain on Hedges	250.0			266.8		282.3		290.7		304.5		327.5		378.0
Total Adjusted Stockholders' Equity	$	8,608.9		$	8,955.1	$	8,684.8	$	8,600.5	$	8,453.9	$	8,199.9	$	8,081.6

	Three Months Ended			Nine Months Ended		Twelve Months Ended		Three Months Ended		Nine Months Ended		Twelve Months Ended
	9/30/2018					12/31/2017		9/30/2017				12/31/2016
Average Stockholders' Equity Excluding Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges	$	8,782.0		$	8,654.1	$	8,442.4	$	8,527.2	$	8,400.2	$	8,140.8

16. 5

Reconciliation of Non-GAAP Financial Measures - Continued



	Three Months Ended September 30										Nine Months Ended September 30
	2018						2017				2018						2017
	(in millions)			per share *			(in millions)		per share *		(in millions)			per share *			(in millions)			per share *
Net Income (Loss)	$	(284.7	)	$	(1.30	)	$	252.3	$	1.12	$	274.3		$	1.24		$	727.3		$	3.19
Excluding:
Net Realized Investment Gain (net of tax expense (benefit) of $(1.1); $3.6; $(2.2); $10.8)	7.8			0.04			6.2		0.03		4.1			0.01			18.1			0.08
Loss from Guaranty Fund Assessment (net of tax benefit of $-; $-; $-; $7.2)	—			—			—		—		—			—			(13.4		)	(0.06		)
Long-term Care Reserve Increase (net of tax benefit of $157.7; $-; $157.7; $-)	(593.1		)	(2.71		)	—		—		(593.1		)	(2.68		)	—			—
After-tax Adjusted Operating Income	$	300.6		$	1.37		$	246.1	$	1.09	$	863.3		$	3.91		$	722.6		$	3.17



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

* Assuming Dilution

16. 6

Reconciliation of Non-GAAP Financial Measures - Continued



	September 30						December 31
	2018			2017			2017			2016
Debt	$	2,983.5		$	2,954.0		$	2,938.3		$	2,999.4
Excluding:
Non-recourse Debt	151.8			210.8			196.0			255.0
Adjusted Debt	$	2,831.7		$	2,743.2		$	2,742.3		$	2,744.4

Total Stockholders' Equity	$	8,518.2		$	9,448.6		$	9,574.9		$	8,968.0
Excluding:
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges	(90.7		)	848.1			890.1			768.1
Northwind Capital	954.9			872.2			912.2			862.6
Equity, As Adjusted	7,654.0			7,728.3			7,772.6			7,337.3
Debt, As Adjusted	2,831.7			2,743.2			2,742.3			2,744.4
Total Adjusted Capital	$	10,485.7		$	10,471.5		$	10,514.9		$	10,081.7

Leverage Ratio	27.0		%	26.2		%	26.1		%	27.2		%

16. 7

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Form 8-K Unum Group For: Oct 24

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