Exhibit 99.2

Unum Group
Statistical Supplement Fourth Quarter 2008
TABLE OF CONTENTS
(dollars in millions, except share data and where noted)
Interim Results are Unaudited
	Page
Financial Highlights	1
Consolidated Statements of Income	2
Sales Data	3
Consolidated Balance Sheets	4
Financial Results by Segment	5
Quarterly Historical Financial Results by Segment	6
Financial Results and Selected Statistics by Segment
Unum US	7
Unum UK	8
Colonial Life	9
Individual Disability - Closed Block	10
Corporate and Other	11
Reserves	12
Investment Fact Sheets	13
Statutory-Basis Financial Information	14
Notes to Statistical Supplement	15
Throughout this supplement, segment operating results exclude income taxes and realized investment gains and losses.
Effective with fourth quarter of 2008, we made slight modifications to our reporting segments.  Previously reported segment information has been revised to reflect the reclassifications. See page 15.
See "Notes to Statistical Supplement" on page 15 for a discussion of non-GAAP financial measures and significant transactions and events.
N.M. = not a meaningful percentage

Unum Group Financial Highlights
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Financial Results
Premium Income	$	1,917.7		$	1,983.9		$	7,783.3		$	7,901.1		$	7,948.2
Segment Operating Revenue	$	2,581.4		$	2,669.3		$	10,448.2		$	10,585.1		$	10,533.1
Net Realized Investment Gain (Loss)		(257.7	)		(25.8	)		(465.9	)		(65.2	)		2.2
Revenue	$	2,323.7		$	2,643.5		$	9,982.3		$	10,519.9		$	10,535.3
Income from Continuing Operations	$	41.8		$	160.5		$	553.2		$	672.4		$	403.6
Income from Discontinued Operations, net of tax		-			-			-			6.9			7.4
Net Income	$	41.8		$	160.5		$	553.2		$	679.3		$	411.0
Assets							$	49,417.4		$	52,701.9		$	52,977.8
Stockholders' Equity							$	6,397.9		$	8,039.9		$	7,718.8

2007
	•	Full year 2007 results include a claim reassessment charge of $53.0 million before tax, or $34.5 million after tax.
	•	Fourth quarter 2007 results include costs related to early retirement of debt of $55.6 million before tax, or $36.1 million after tax, and full
		year 2007 results include $58.8 million before tax, or $38.3 million after tax.
2006
	•	Full year 2006 results include claim reassessment charges of $411.4 million before tax, or $267.4 million after tax.
	•	Full year 2006 results include costs related to early retirement of debt of $25.8 million before tax, or $16.9 million after tax.
	•	Full year 2006 results include broker compensation settlement expenses of $18.5 million before tax, or $12.7 million after tax.
	•	Full year 2006 results include income of $2.6 million before tax, or $3.9 million after tax, attributable to the receipt of interest and tax
		refunds on prior year tax items in excess of what was previously provided.
	•	Full year 2006 results include an income tax benefit of approximately $91.9 million primarily as the result of group relief benefits obtained
		from the use of net operating losses in a foreign jurisdiction in which our businesses operate.

1

Unum Group Financial Highlights
	Three Months Ended				Year Ended
	12/31/2008		12/31/2007		12/31/2008		12/31/2007		12/31/2006
Per Common Share Information
Assuming Dilution:
Income from Continuing Operations	$	0.13	$	0.44	$	1.62	$	1.89	$	1.21
Income from Discontinued Operations, net of tax		-		-		-		0.02		0.02
Net Income	$	0.13	$	0.44	$	1.62	$	1.91	$	1.23
Basic:
Income from Continuing Operations	$	0.13	$	0.45	$	1.62	$	1.90	$	1.25
Income from Discontinued Operations, net of tax		-		-		-		0.02		0.02
Net Income	$	0.13	$	0.45	$	1.62	$	1.92	$	1.27
Dividends Paid	$	0.075	$	0.075	$	0.300	$	0.300	$	0.300
Book Value					$	19.32	$	22.28	$	22.53
Price (UNM closing price on last trading day of period)					$	18.60	$	23.79	$	20.78

1.1

Unum Group Consolidated Statements of Income
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Revenue
Premium Income	$	1,917.7		$	1,983.9		$	7,783.3		$	7,901.1		$	7,948.2
Net Investment Income		589.8			619.4			2,389.0			2,409.9			2,320.6
Net Realized Investment Gain (Loss)		(257.7	)		(25.8	)		(465.9	)		(65.2	)		2.2
Other Income		73.9			66.0			275.9			274.1			264.3
Total Revenue		2,323.7			2,643.5			9,982.3			10,519.9			10,535.3
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		1,648.5			1,715.7			6,626.4			6,988.2			7,577.2
Commissions		208.5			210.6			853.3			841.1			819.0
Interest and Debt Expense - Non-recourse Debt		7.9			10.1			39.3			15.8			1.3
Interest and Debt Expense - All Other Debt		26.9			38.7			117.0			167.3			190.5
Cost Related to Early Retirement of Debt		-			55.6			0.4			58.8			25.8
Deferral of Acquisition Costs		(146.3	)		(142.7	)		(590.9	)		(556.3	)		(528.2	)
Amortization of Deferred Acquisition Costs		132.5			120.3			519.1			480.4			478.6
Other Expenses		393.2			409.8			1,593.7			1,527.4			1,505.7
Total Benefits and Expenses		2,271.2			2,418.1			9,158.3			9,522.7			10,069.9
Income from Continuing Operations Before
Income Taxes		52.5			225.4			824.0			997.2			465.4
Income Taxes		10.7			64.9			270.8			324.8			61.8
Income from Continuing Operations		41.8			160.5			553.2			672.4			403.6
Income from Discontinued
Operations, net of tax		-			-			-			6.9			7.4
Net Income	$	41.8		$	160.5		$	553.2		$	679.3		$	411.0
Average Number of Shares Outstanding
Basic		330,845,996			359,809,213			341,022,792			352,969,131			324,654,923
Dilutive Securities:
Purchase Contracts		-			-			-			1,672,949			8,153,001
Options and Other Nonvested Stock Awards		135,475			898,404			537,505			1,134,373			1,553,820
Assuming Dilution		330,981,471			360,707,617			341,560,297			355,776,453			334,361,744
Actual Number of Shares Outstanding								331,120,345			360,893,475			342,627,521

2

Unum Group Sales Data
	Three Months Ended							Year Ended
	12/31/2008		12/31/2007		% Change			12/31/2008		12/31/2007		12/31/2006
Unum US Segment
Fully Insured Products	$	254.9	$	226.9		12.3	%	$	701.5	$	631.0	$	671.8
Administrative Services Only (ASO) Products		3.7		2.6		42.3			7.2		7.2		13.7
Total Unum US Segment		258.6		229.5		12.7			708.7		638.2		685.5
Unum UK Segment		27.0		34.6		(22.0	)		99.5		105.4		101.1
Colonial Life Segment		115.4		114.2		1.1			340.2		334.9		315.1
Individual Disability - Closed Block Segment		0.7		0.7		-			2.4		3.0		4.4
Total Sales	$	401.7	$	379.0		6.0		$	1,150.8	$	1,081.5	$	1,106.1

3

Unum Group Sales Data for Unum US Segment
	Three Months Ended							Year Ended
	12/31/2008		12/31/2007		% Change			12/31/2008		12/31/2007		12/31/2006
Sales by Product
Fully Insured Products
Group Disability, Group Life, and AD&D
Group Long-term Disability	$	77.4	$	75.3		2.8	%	$	190.3	$	177.7	$	208.5
Group Short-term Disability		31.0		24.8		25.0			71.5		64.7		74.1
Group Life		82.6		61.3		34.7			165.4		134.0		149.8
AD&D		9.2		6.2		48.4			17.2		13.8		13.7
Subtotal		200.2		167.6		19.5			444.4		390.2		446.1
Supplemental and Voluntary
Individual Disability - Recently Issued		13.5		15.5		(12.9	)		57.9		59.7		55.4
Group Long-term Care		10.0		11.4		(12.3	)		32.2		32.8		25.1
Individual Long-term Care		1.9		3.3		(42.4	)		8.4		9.9		11.0
Voluntary Benefits		29.3		29.1		0.7			158.6		138.4		134.2
Subtotal		54.7		59.3		(7.8	)		257.1		240.8		225.7
Total Fully Insured Products		254.9		226.9		12.3			701.5		631.0		671.8
Administrative Services Only (ASO) Products		3.7		2.6		42.3			7.2		7.2		13.7
Total Sales	$	258.6	$	229.5		12.7		$	708.7	$	638.2	$	685.5
Sales by Market Sector
Group Disability, Group Life, and AD&D
Core Market (< 2,000 lives)	$	140.6	$	108.5		29.6		$	297.2	$	240.3	$	238.9
Large Case Market		59.6		59.1		0.8			147.2		149.9		207.2
Subtotal		200.2		167.6		19.5			444.4		390.2		446.1
Supplemental and Voluntary		54.7		59.3		(7.8	)		257.1		240.8		225.7
Total Fully Insured Products		254.9		226.9		12.3			701.5		631.0		671.8
Administrative Services Only (ASO) Products		3.7		2.6		42.3			7.2		7.2		13.7
Total Sales	$	258.6	$	229.5		12.7		$	708.7	$	638.2	$	685.5

3.1

Unum Group Sales Data for Unum UK Segment
	Three Months Ended							Year Ended
	12/31/2008		12/31/2007		% Change			12/31/2008		12/31/2007		12/31/2006
Group Long-term Disability	$	18.5	$	29.3		(36.9	)%	$	72.7	$	84.4	$	79.1
Group Life		6.9		3.0		130.0			19.6		13.2		16.5
Individual Disability		1.6		2.3		(30.4	)		7.2		7.8		5.5
Total Sales	$	27.0	$	34.6		(22.0	)	$	99.5	$	105.4	$	101.1
(in millions of pounds)
Group Long-term Disability	£	12.0	£	14.4		(16.7	)%	£	39.7	£	42.1	£	42.1
Group Life		4.3		1.5		186.7			10.9		6.6		9.0
Individual Disability		1.1		1.1		-			3.9		3.9		3.0
Total Sales	£	17.4	£	17.0		2.4		£	54.5	£	52.6	£	54.1

Unum Group Sales Data for Colonial Life Segment
	Three Months Ended							Year Ended
	12/31/2008		12/31/2007		% Change			12/31/2008		12/31/2007		12/31/2006
Accident, Sickness, and Disability	$	75.0	$	71.9		4.3	%	$	222.1	$	211.3	$	194.4
Life		20.4		22.0		(7.3	)		64.0		66.7		66.6
Cancer and Critical Illness		20.0		20.3		(1.5	)		54.1		56.9		54.1
Total Sales	$	115.4	$	114.2		1.1		$	340.2	$	334.9	$	315.1

3.2

Unum Group Consolidated Balance Sheets
	December 31,
	2008			2007
Assets
Investments
Fixed Maturity Securities	$	32,134.1		$	35,814.7
Mortgage Loans		1,274.8			1,068.9
Policy Loans		2,753.8			2,617.7
Other Long-term Investments		520.1			232.1
Short-term Investments		1,183.1			1,486.8
Total Investments		37,865.9			41,220.2
Cash and Bank Deposits		49.9			199.1
Accounts and Premiums Receivable		1,784.8			1,914.7
Reinsurance Recoverable		4,974.2			5,160.0
Accrued Investment Income		605.6			592.3
Deferred Acquisition Costs		2,472.4			2,381.9
Goodwill		200.5			204.3
Deferred Income Tax		438.8			-
Other Assets		1,014.8			1,009.2
Separate Account Assets		10.5			20.2
Total Assets	$	49,417.4		$	52,701.9
Liabilities
Policy and Contract Benefits	$	1,769.5		$	1,979.7
Reserves for Future Policy and Contract Benefits		34,581.5			35,828.0
Unearned Premiums		463.9			523.1
Other Policyholders' Funds		1,675.6			1,821.2
Income Tax Payable		115.5			400.3
Short-term Debt		190.5			175.0
Long-term Debt - Non-recourse		843.2			912.5
Long-term Debt - All Other		1,416.2			1,602.7
Other Liabilities		1,953.1			1,399.3
Separate Account Liabilities		10.5			20.2
Total Liabilities		43,019.5			44,662.0
Stockholders' Equity
Common Stock		36.3			36.3
Additional Paid-in Capital		2,546.9			2,516.9
Accumulated Other Comprehensive Income (Loss)		(958.2	)		463.5
Retained Earnings		5,527.1			5,077.4
Treasury Stock		(754.2	)		(54.2	)
Total Stockholders' Equity		6,397.9			8,039.9
Total Liabilities and Stockholders' Equity	$	49,417.4		$	52,701.9

4

Unum Group Deferred Acquisition Costs by Segment
	Unum US			Unum UK			Colonial			Consolidated
Balances at December 31, 2005	$	2,201.2		$	142.5		$	569.6		$	2,913.3
Capitalized		306.2			34.4			187.6			528.2
Amortized		(302.2	)		(32.0	)		(144.4	)		(478.6	)
Foreign Currency and Other		-			20.2			-			20.2
Balances at December 31, 2006		2,205.2			165.1			612.8			2,983.1
Cumulative Effect of SOP 05-1		(589.8	)		(88.3	)		-			(678.1	)
Capitalized		304.2			41.2			210.9			556.3
Amortized		(277.1	)		(49.4	)		(153.9	)		(480.4	)
Foreign Currency and Other		-			1.0			-			1.0
Balances at December 31, 2007		1,642.5			69.6			669.8			2,381.9
Capitalized		329.7			37.4			223.8			590.9
Amortized		(320.3	)		(32.4	)		(166.4	)		(519.1	)
Foreign Currency and Other		9.9			(19.9	)		28.7			18.7
Balances at December 31, 2008	$	1,661.8		$	54.7		$	755.9		$	2,472.4

4.1

Unum Group Balance Sheets by Segment - December 31, 2008
	Unum US
				Group Life and Accidental			Supplemental											Individual
	Group			Death &			and			Total					Colonial			Disability -			Corporate
	Disability			Dismemberment			Voluntary			Unum US			Unum UK		Life			Closed Block			and Other			Consolidated
Assets
Investments	$	9,227.2		$	2,011.9		$	6,782.6		$	18,021.7		$	2,568.5	$	1,570.5		$	11,112.4		$	4,592.8		$	37,865.9
Deferred Acquisition Costs		128.3			85.7			1,447.8			1,661.8			54.7		755.9			-			-			2,472.4
Goodwill		2.5			-			187.5			190.0			10.5		-			-			-			200.5
All Other		460.5			120.6			(13.7	)		567.4			231.7		120.5			3,240.6			4,718.4			8,878.6
Total Assets	$	9,818.5		$	2,218.2		$	8,404.2		$	20,440.9		$	2,865.4	$	2,446.9		$	14,353.0		$	9,311.2		$	49,417.4
Liabilities
Reserves and Policyholder Benefits	$	8,013.4		$	1,435.8		$	5,851.4		$	15,300.6		$	2,052.0	$	1,537.2		$	12,179.5		$	7,421.2		$	38,490.5
Debt		102.5			-			-			102.5			-		-			799.1			1,548.3			2,449.9
All Other		31.7			9.8			284.4			325.9			77.6		35.7			387.3			1,252.6			2,079.1
Total Liabilities		8,147.6			1,445.6			6,135.8			15,729.0			2,129.6		1,572.9			13,365.9			10,222.1			43,019.5
Other Allocated Stockholders' Equity		1,785.7			806.1			2,174.9			4,766.7			668.0		937.7			1,205.4			(805.8	)		6,772.0
Unrealized Gain/Loss on Securities		(114.8	)		(33.5	)		93.5			(54.8	)		67.8		(63.7	)		(218.3	)		(105.1	)		(374.1	)
Total Allocated Stockholders' Equity		1,670.9			772.6			2,268.4			4,711.9			735.8		874.0			987.1			(910.9	)		6,397.9
Total Liabilities and Allocated
Stockholders' Equity	$	9,818.5		$	2,218.2		$	8,404.2		$	20,440.9		$	2,865.4	$	2,446.9		$	14,353.0		$	9,311.2		$	49,417.4
Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with the Company's target capital levels for regulatory and rating agency purposes. This formula is modified periodically to recognize changes in the views of capital requirements.

4.2

Unum Group Balance Sheets by Segment - December 31, 2007
	Unum US
				Group Life
				and Accidental		Supplemental								Individual
	Group			Death &		and		Total				Colonial		Disability -		Corporate
	Disability			Dismemberment		Voluntary		Unum US		Unum UK		Life		Closed Block		and Other			Consolidated
Assets
Investments	$	10,052.7		$	2,144.9	$	5,911.9	$	18,109.5	$	3,289.5	$	1,658.0	$	12,191.0	$	5,972.2		$	41,220.2
Deferred Acquisition Costs		145.6			100.4		1,396.5		1,642.5		69.6		669.8		-		-			2,381.9
Goodwill		2.5			-		187.5		190.0		14.3		-		-		-			204.3
All Other		728.3			102.1		378.0		1,208.4		509.0		190.7		3,111.3		3,876.1			8,895.5
Total Assets	$	10,929.1		$	2,347.4	$	7,873.9	$	21,150.4	$	3,882.4	$	2,518.5	$	15,302.3	$	9,848.3		$	52,701.9
Liabilities
Reserves and Policyholder Benefits	$	8,836.9		$	1,514.0	$	5,171.1	$	15,522.0	$	2,867.1	$	1,464.5	$	12,679.9	$	7,618.5		$	40,152.0
Debt		112.5			-		-		112.5		-		-		800.0		1,777.7			2,690.2
All Other		212.5			10.7		472.1		695.3		162.9		162.3		77.4		721.9			1,819.8
Total Liabilities		9,161.9			1,524.7		5,643.2		16,329.8		3,030.0		1,626.8		13,557.3		10,118.1			44,662.0
Other Allocated Stockholders' Equity		1,835.5			799.0		1,945.9		4,580.4		780.6		868.1		1,579.5		(307.3	)		7,501.3
Unrealized Gain/Loss on Securities		(68.3	)		23.7		284.8		240.2		71.8		23.6		165.5		37.5			538.6
Total Allocated Stockholders' Equity		1,767.2			822.7		2,230.7		4,820.6		852.4		891.7		1,745.0		(269.8	)		8,039.9
Total Liabilities and Allocated
Stockholders' Equity	$	10,929.1		$	2,347.4	$	7,873.9	$	21,150.4	$	3,882.4	$	2,518.5	$	15,302.3	$	9,848.3		$	52,701.9
Allocated stockholders' equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with the
Company's target capital levels for regulatory and rating agency purposes. This formula is modified periodically to recognize changes in the views of capital requirements.

4.3

Unum Group Financial Results by Segment
	Three Months Ended							Year Ended
	12/31/2008		12/31/2007		% Change			12/31/2008		12/31/2007		% Change
Premium Income
Unum US	$	1,246.6	$	1,248.1		(0.1	)%	$	4,963.0	$	5,014.0		(1.0	)%
Unum UK		182.3		251.4		(27.5	)		889.3		968.3		(8.2	)
Colonial Life		249.1		232.0		7.4			977.3		907.2		7.7
Individual Disability - Closed Block		239.2		252.2		(5.2	)		952.3		1,009.9		(5.7	)
Corporate and Other		0.5		0.2		150.0			1.4		1.7		(17.6	)
		1,917.7		1,983.9		(3.3	)		7,783.3		7,901.1		(1.5	)
Net Investment Income
Unum US		289.6		279.1		3.8			1,136.4		1,114.0		2.0
Unum UK		42.1		54.0		(22.0	)		181.9		187.4		(2.9	)
Colonial Life		26.9		25.6		5.1			105.7		99.9		5.8
Individual Disability - Closed Block		188.9		206.0		(8.3	)		767.5		827.6		(7.3	)
Corporate and Other		42.3		54.7		(22.7	)		197.5		181.0		9.1
		589.8		619.4		(4.8	)		2,389.0		2,409.9		(0.9	)
Other Income
Unum US		33.2		33.6		(1.2	)		132.7		135.6		(2.1	)
Unum UK		0.7		0.4		75.0			2.0		3.1		(35.5	)
Colonial Life		0.1		-	N.M.				0.4		0.9		(55.6	)
Individual Disability - Closed Block		25.3		25.1		0.8			98.6		103.7		(4.9	)
Corporate and Other		14.6		6.9		111.6			42.2		30.8		37.0
		73.9		66.0		12.0			275.9		274.1		0.7
Total Operating Revenue
Unum US		1,569.4		1,560.8		0.6			6,232.1		6,263.6		(0.5	)
Unum UK		225.1		305.8		(26.4	)		1,073.2		1,158.8		(7.4	)
Colonial Life		276.1		257.6		7.2			1,083.4		1,008.0		7.5
Individual Disability - Closed Block		453.4		483.3		(6.2	)		1,818.4		1,941.2		(6.3	)
Corporate and Other		57.4		61.8		(7.1	)		241.1		213.5		12.9
		2,581.4		2,669.3		(3.3	)		10,448.2		10,585.1		(1.3	)

5

Unum Group Financial Results by Segment
	Three Months Ended									Year Ended
	12/31/2008			12/31/2007			% Change			12/31/2008			12/31/2007			% Change
Benefits and Expenses
Unum US	$	1,386.8		$	1,399.9			(0.9	)%	$	5,548.0		$	5,721.5			(3.0	)%
Unum UK		170.5			224.1			(23.9	)		749.2			833.0			(10.1	)
Colonial Life		209.8			198.8			5.5			815.3			762.2			7.0
Individual Disability - Closed Block		446.3			468.3			(4.7	)		1,790.7			1,831.7			(2.2	)
Corporate and Other		57.8			127.0			(54.5	)		255.1			374.3			(31.8	)
		2,271.2			2,418.1			(6.1	)		9,158.3			9,522.7			(3.8	)
Income (Loss) from Continuing Operations
Before Income Taxes and Net Realized
Investment Gain (Loss)
Unum US		182.6			160.9			13.5			684.1			542.1			26.2
Unum UK		54.6			81.7			(33.2	)		324.0			325.8			(0.6	)
Colonial Life		66.3			58.8			12.8			268.1			245.8			9.1
Individual Disability - Closed Block		7.1			15.0			(52.7	)		27.7			109.5			(74.7	)
Corporate and Other		(0.4	)		(65.2	)		99.4			(14.0	)		(160.8	)		91.3
		310.2			251.2			23.5			1,289.9			1,062.4			21.4
Income Taxes		100.8			74.2			35.8			432.6			346.8			24.7
Income from Continuing Operations
Before Net Realized Investment Loss		209.4			177.0			18.3			857.3			715.6			19.8
Net Realized Investment Loss		(257.7	)		(25.8	)	N.M.				(465.9	)		(65.2	)	N.M.
Tax Benefit on Net Realized
Investment Loss		(90.1	)		(9.3	)	N.M.				(161.8	)		(22.0	)	N.M.
Income from Discontinued
Operations, net of tax		-			-		N.M.				-			6.9			(100.0	)
Net Income	$	41.8		$	160.5			(74.0	)	$	553.2		$	679.3			(18.6	)

5.1

Unum Group Quarterly Historical Financial Results by Segment
	12/31/08		9/30/08		6/30/08		3/31/08		12/31/07		9/30/07		6/30/07			3/31/07		12/31/06
Premium Income
Unum US	$	1,246.6	$	1,239.1	$	1,246.9	$	1,230.4	$	1,248.1	$	1,255.3	$	1,265.7		$	1,244.9	$	1,302.0
Unum UK		182.3		224.7		241.7		240.6		251.4		247.6		247.0			222.3		231.0
Colonial Life		249.1		245.2		242.6		240.4		232.0		227.0		224.8			223.4		217.2
Individual Disability - Closed Block		239.2		237.5		237.2		238.4		252.2		256.0		249.4			252.3		269.8
Corporate and Other		0.5		-		0.2		0.7		0.2		0.6		(0.2	)		1.1		2.0
		1,917.7		1,946.5		1,968.6		1,950.5		1,983.9		1,986.5		1,986.7			1,944.0		2,022.0
Net Investment Income
Unum US		289.6		284.3		286.5		276.0		279.1		278.5		282.7			273.7		283.3
Unum UK		42.1		45.8		51.5		42.5		54.0		44.0		46.3			43.1		49.3
Colonial Life		26.9		26.5		26.4		25.9		25.6		25.0		24.9			24.4		24.0
Individual Disability - Closed Block		188.9		189.3		198.4		190.9		206.0		213.6		203.4			204.6		205.5
Corporate and Other		42.3		48.8		50.3		56.1		54.7		42.1		40.5			43.7		39.3
		589.8		594.7		613.1		591.4		619.4		603.2		597.8			589.5		601.4
Other Income
Unum US		33.2		33.5		33.4		32.6		33.6		32.8		34.6			34.6		27.7
Unum UK		0.7		0.9		0.2		0.2		0.4		0.7		0.3			1.7		0.1
Colonial Life		0.1		0.1		0.1		0.1		-		0.3		0.3			0.3		0.2
Individual Disability - Closed Block		25.3		23.8		25.4		24.1		25.1		27.5		25.8			25.3		29.4
Corporate and Other		14.6		9.0		8.4		10.2		6.9		5.3		9.7			8.9		14.6
		73.9		67.3		67.5		67.2		66.0		66.6		70.7			70.8		72.0
Total Operating Revenue
Unum US		1,569.4		1,556.9		1,566.8		1,539.0		1,560.8		1,566.6		1,583.0			1,553.2		1,613.0
Unum UK		225.1		271.4		293.4		283.3		305.8		292.3		293.6			267.1		280.4
Colonial Life		276.1		271.8		269.1		266.4		257.6		252.3		250.0			248.1		241.4
Individual Disability - Closed Block		453.4		450.6		461.0		453.4		483.3		497.1		478.6			482.2		504.7
Corporate and Other		57.4		57.8		58.9		67.0		61.8		48.0		50.0			53.7		55.9
		2,581.4		2,608.5		2,649.2		2,609.1		2,669.3		2,656.3		2,655.2			2,604.3		2,695.4

6

Unum Group Quarterly Historical Financial Results by Segment
	12/31/08			9/30/08			6/30/08			3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Benefits and Expenses
Unum US	$	1,386.8		$	1,385.3		$	1,395.2		$	1,380.7		$	1,399.9		$	1,408.8		$	1,496.5		$	1,416.3		$	1,479.8
Unum UK		170.5			178.9			200.8			199.0			224.1			194.7			219.5			194.7			200.2
Colonial Life		209.8			205.6			200.9			199.0			198.8			189.8			185.1			188.5			190.9
Individual Disability - Closed Block		446.3			448.1			445.8			450.5			468.3			467.7			436.0			459.7			476.0
Corporate and Other		57.8			65.0			65.6			66.7			127.0			70.2			95.6			81.5			83.6
		2,271.2			2,282.9			2,308.3			2,295.9			2,418.1			2,331.2			2,432.7			2,340.7			2,430.5
Income (Loss) from Continuing Operations
Before Income Taxes and Net Realized
Investment Gain (Loss)
Unum US		182.6			171.6			171.6			158.3			160.9			157.8			86.5			136.9			133.2
Unum UK		54.6			92.5			92.6			84.3			81.7			97.6			74.1			72.4			80.2
Colonial Life		66.3			66.2			68.2			67.4			58.8			62.5			64.9			59.6			50.5
Individual Disability - Closed Block		7.1			2.5			15.2			2.9			15.0			29.4			42.6			22.5			28.7
Corporate and Other		(0.4	)		(7.2	)		(6.7	)		0.3			(65.2	)		(22.2	)		(45.6	)		(27.8	)		(27.7	)
		310.2			325.6			340.9			313.2			251.2			325.1			222.5			263.6			264.9
Income Taxes (Benefit)		100.8			108.7			117.7			105.4			74.2			108.1			75.5			89.0			(8.8	)
Income from Continuing Operations
Before Net Realized Investment Gain (Loss)		209.4			216.9			223.2			207.8			177.0			217.0			147.0			174.6			273.7
Net Realized Investment Gain (Loss)		(257.7	)		(165.8	)		26.1			(68.5	)		(25.8	)		(46.1	)		10.4			(3.7	)		0.7
Tax Expense (Benefit) on Net Realized
Investment Gain (Loss)		(90.1	)		(56.9	)		9.0			(23.8	)		(9.3	)		(16.1	)		3.9			(0.5	)		0.2
Income from Discontinued
Operations, net of tax		-			-			-			-			-			-			-			6.9			1.9
Net Income	$	41.8		$	108.0		$	240.3		$	163.1		$	160.5		$	187.0		$	153.5		$	178.3		$	276.1
Per Common Share - Assuming Dilution
Income from Continuing Operations	$	0.13		$	0.32		$	0.69		$	0.46		$	0.44		$	0.52		$	0.43		$	0.49		$	0.79
Income from Discontinued Operations,
net of tax		-			-			-			-			-			-			-			0.02			0.01
Net Income	$	0.13		$	0.32		$	0.69		$	0.46		$	0.44		$	0.52		$	0.43		$	0.51		$	0.80

6.1

Unum Group Financial Results for Unum US Segment
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income	$	1,246.6		$	1,248.1		$	4,963.0		$	5,014.0		$	5,196.0
Net Investment Income		289.6			279.1			1,136.4			1,114.0			1,057.5
Other Income		33.2			33.6			132.7			135.6			108.5
Total Operating Revenue		1,569.4			1,560.8			6,232.1			6,263.6			6,362.0
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		1,001.0			1,019.0			3,998.4			4,246.4			4,752.1
Commissions		127.5			124.1			518.6			501.5			505.2
Interest and Debt Expense - Non-recourse Debt		0.9			1.8			4.2			7.5			1.3
Deferral of Acquisition Costs		(82.8	)		(78.2	)		(329.7	)		(304.2	)		(306.2	)
Amortization of Deferred Acquisition Costs		81.3			68.8			320.3			277.1			302.2
Other Expenses		258.9			264.4			1,036.2			993.2			1,018.7
Total Benefits and Expenses		1,386.8			1,399.9			5,548.0			5,721.5			6,273.3
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	182.6		$	160.9		$	684.1		$	542.1		$	88.7
Operating Ratios
Benefit Ratio		80.3	%		81.6	%		80.6	%		84.7	%		91.5	%
Other Expense Ratio		20.8	%		21.2	%		20.9	%		19.8	%		19.6	%
Before-tax Profit Margin		14.6	%		12.9	%		13.8	%		10.8	%		1.7	%
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses,
as Reported	$	182.6		$	160.9		$	684.1		$	542.1		$	88.7
Settlement Agreements Claim Reassessment -
Reserve Charge		-			-			-			(76.5	)		(349.2	)
Settlement Agreements Claim Reassessment -
Other Expense Charge		-			-			-			10.3			(15.0	)
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses, as Adjusted	$	182.6		$	160.9		$	684.1		$	608.3		$	452.9
Operating Ratios, as Adjusted
Benefit Ratio		80.3	%		81.6	%		80.6	%		83.2	%		84.7	%
Other Expense Ratio		20.8	%		21.2	%		20.9	%		20.0	%		19.3	%
Before-tax Profit Margin		14.6	%		12.9	%		13.8	%		12.1	%		8.7	%

7

Unum Group Financial Results for Unum US Group Disability
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income
Group Long-term Disability	$	459.2		$	473.3		$	1,838.5		$	1,895.7		$	1,953.3
Group Short-term Disability		110.0			115.3			435.1			485.6			530.2
Total Premium Income		569.2			588.6			2,273.6			2,381.3			2,483.5
Net Investment Income		156.6			158.6			631.3			648.7			638.5
Other Income		24.9			26.4			100.2			100.1			82.3
Total Operating Revenue		750.7			773.6			3,005.1			3,130.1			3,204.3
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		504.9			538.7			2,043.9			2,277.4			2,702.5
Commissions		39.8			40.3			165.9			167.7			175.8
Interest and Debt Expense - Non-recourse Debt		0.9			1.8			4.2			7.5			1.3
Deferral of Acquisition Costs		(15.3	)		(15.2	)		(59.4	)		(60.4	)		(64.5	)
Amortization of Deferred Acquisition Costs		19.1			16.6			76.7			66.2			86.4
Other Expenses		141.6			148.2			572.4			561.6			588.7
Total Benefits and Expenses		691.0			730.4			2,803.7			3,020.0			3,490.2
Operating Income (Loss) Before Income Taxes
and Net Realized Investment Gains and Losses	$	59.7		$	43.2		$	201.4		$	110.1		$	(285.9	)
Operating Ratios
Benefit Ratio		88.7	%		91.5	%		89.9	%		95.6	%		108.8	%
Other Expense Ratio		24.9	%		25.2	%		25.2	%		23.6	%		23.7	%
Before-tax Profit (Loss) Margin		10.5	%		7.3	%		8.9	%		4.6	%		(11.5	)%
Premium Persistency:
Group Long-term Disability								87.8	%		85.1	%		87.8	%
Group Short-term Disability								82.1	%		74.0	%		85.6	%
Case Persistency:
Group Long-term Disability								89.2	%		88.4	%		87.4	%
Group Short-term Disability								88.2	%		87.4	%		86.2	%

7.1

Unum Group Financial Results for Unum US Group Disability - Continued
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Income (Loss) Before Income Taxes
and Net Realized Investment Gains and Losses,
as Reported	$	59.7		$	43.2		$	201.4		$	110.1		$	(285.9	)
Settlement Agreements Claim Reassessment -
Reserve Charge		-			-			-			(76.5	)		(349.2	)
Settlement Agreements Claim Reassessment -
Other Expense Charge		-			-			-			10.3			(15.0	)
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses,
as Adjusted	$	59.7		$	43.2		$	201.4		$	176.3		$	78.3
Operating Ratios, as Adjusted
Benefit Ratio		88.7	%		91.5	%		89.9	%		92.4	%		94.8	%
Other Expense Ratio		24.9	%		25.2	%		25.2	%		24.0	%		23.1	%
Before-tax Profit Margin		10.5	%		7.3	%		8.9	%		7.4	%		3.2	%

7.2

Unum Group Financial Results for Unum US Group Life and Accidental Death and Dismemberment
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income
Group Life	$	266.2		$	273.1		$	1,062.8		$	1,107.4		$	1,248.1
Accidental Death & Dismemberment		30.9			33.3			127.6			131.0			151.6
Total Premium Income		297.1			306.4			1,190.4			1,238.4			1,399.7
Net Investment Income		31.9			32.5			126.0			134.9			141.3
Other Income		0.6			0.5			2.3			2.4			-
Total Operating Revenue		329.6			339.4			1,318.7			1,375.7			1,541.0
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		207.9			212.9			827.6			901.6			1,067.3
Commissions		21.8			22.4			85.4			88.7			90.1
Deferral of Acquisition Costs		(10.4	)		(9.8	)		(40.3	)		(36.1	)		(37.7	)
Amortization of Deferred Acquisition Costs		13.9			10.3			55.0			39.4			65.0
Other Expenses		46.1			43.5			180.1			164.9			178.3
Total Benefits and Expenses		279.3			279.3			1,107.8			1,158.5			1,363.0
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	50.3		$	60.1		$	210.9		$	217.2		$	178.0
Operating Ratios
Benefit Ratio		70.0	%		69.5	%		69.5	%		72.8	%		76.3	%
Other Expense Ratio		15.5	%		14.2	%		15.1	%		13.3	%		12.7	%
Before-tax Profit Margin		16.9	%		19.6	%		17.7	%		17.5	%		12.7	%
Premium Persistency:
Group Life								83.8	%		78.8	%		81.2	%
Accidental Death & Dismemberment								86.4	%		80.8	%		82.8	%
Case Persistency:
Group Life								89.1	%		87.7	%		86.9	%
Accidental Death & Dismemberment								89.2	%		88.0	%		87.0	%

7.3

Unum Group Financial Results for Unum US Supplemental and Voluntary
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income
Individual Disability - Recently Issued	$	118.6		$	113.2		$	471.5		$	456.7		$	438.5
Long-term Care		149.2			137.1			580.7			532.9			492.4
Voluntary Benefits		112.5			102.8			446.8			404.7			381.9
Total Premium Income		380.3			353.1			1,499.0			1,394.3			1,312.8
Net Investment Income		101.1			88.0			379.1			330.4			277.7
Other Income		7.7			6.7			30.2			33.1			26.2
Total Operating Revenue		489.1			447.8			1,908.3			1,757.8			1,616.7
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		288.2			267.4			1,126.9			1,067.4			982.3
Commissions		65.9			61.4			267.3			245.1			239.3
Deferral of Acquisition Costs		(57.1	)		(53.2	)		(230.0	)		(207.7	)		(204.0	)
Amortization of Deferred Acquisition Costs		48.3			41.9			188.6			171.5			150.8
Other Expenses		71.2			72.7			283.7			266.7			251.7
Total Benefits and Expenses		416.5			390.2			1,636.5			1,543.0			1,420.1
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	72.6		$	57.6		$	271.8		$	214.8		$	196.6
Operating Ratios
Benefit Ratios
Individual Disability - Recently Issued		53.9	%		53.1	%		53.3	%		56.7	%		58.0	%
Long-term Care		107.2	%		104.7	%		106.1	%		106.0	%		99.2	%
Voluntary Benefits		57.2	%		62.1	%		58.0	%		60.1	%		62.7	%
Other Expense Ratio		18.7	%		20.6	%		18.9	%		19.1	%		19.2	%
Before-tax Profit Margin		19.1	%		16.3	%		18.1	%		15.4	%		15.0	%
Interest Adjusted Loss Ratios
Individual Disability - Recently Issued		36.2	%		34.9	%		35.9	%		40.0	%		42.8	%
Long-term Care		75.6	%		75.5	%		75.5	%		77.7	%		73.1	%
Premium Persistency:
Individual Disability - Recently Issued								90.7	%		90.6	%		90.5	%
Long-term Care								95.5	%		95.4	%		95.3	%
Voluntary Benefits								80.4	%		79.4	%		80.9	%

7.4

Unum Group Financial Results for Unum UK Segment
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income
Group Long-term Disability	$	144.4		$	191.0		$	675.9		$	752.6		$	638.9
Group Life		29.5			50.4			174.6			177.4			171.0
Individual Disability		8.4			10.0			38.8			38.3			32.9
Total Premium Income		182.3			251.4			889.3			968.3			842.8
Net Investment Income		42.1			54.0			181.9			187.4			170.1
Other Income		0.7			0.4			2.0			3.1			0.1
Total Operating Revenue		225.1			305.8			1,073.2			1,158.8			1,013.0
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		114.8			152.9			511.4			574.3			553.5
Commissions		12.3			17.7			59.0			67.0			49.7
Deferral of Acquisition Costs		(8.0	)		(11.0	)		(37.4	)		(41.2	)		(34.4	)
Amortization of Deferred Acquisition Costs		9.3			12.8			32.4			49.4			32.0
Other Expenses		42.1			51.7			183.8			183.5			158.9
Total Benefits and Expenses		170.5			224.1			749.2			833.0			759.7
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	54.6		$	81.7		$	324.0		$	325.8		$	253.3
Operating Ratios
Benefit Ratio		63.0	%		60.8	%		57.5	%		59.3	%		65.7	%
Other Expense Ratio		23.1	%		20.6	%		20.7	%		19.0	%		18.9	%
Before-tax Profit Margin		30.0	%		32.5	%		36.4	%		33.6	%		30.1	%
Premium Persistency:
Group Long-term Disability								87.4	%		88.0	%		90.4	%
Group Life								74.9	%		70.5	%		69.1	%
Individual Disability								87.6	%		89.4	%		88.2	%

8

Unum Group Financial Results for Unum UK Segment
(in millions of pounds)	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income
Group Long-term Disability	£	91.7		£	93.5		£	364.4		£	375.9		£	346.3
Group Life		18.8			24.6			93.3			88.5			92.4
Individual Disability		5.3			4.9			20.9			19.1			17.8
Total Premium Income		115.8			123.0			478.6			483.5			456.5
Net Investment Income		26.7			26.4			98.5			93.5			92.1
Other Income		0.5			0.2			1.2			1.6			-
Total Operating Revenue		143.0			149.6			578.3			578.6			548.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		72.8			74.7			275.8			286.8			300.2
Commissions		7.9			8.7			31.9			33.5			27.0
Deferral of Acquisition Costs		(5.1	)		(5.4	)		(20.1	)		(20.6	)		(18.7	)
Amortization of Deferred Acquisition Costs		6.0			6.3			17.9			24.7			17.1
Other Expenses		26.8			25.3			99.6			91.6			86.1
Total Benefits and Expenses		108.4			109.6			405.1			416.0			411.7
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	£	34.6		£	40.0		£	173.2		£	162.6		£	136.9
Weighted Average Pound/Dollar Exchange Rate		1.578			2.043			1.871			2.004			1.851

8.1

Unum Group Financial Results for Colonial Life Segment
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income
Accident, Sickness, and Disability	$	154.2		$	144.7		$	606.9		$	566.6		$	533.3
Life		40.8			37.0			157.4			143.5			130.5
Cancer and Critical Illness		54.1			50.3			213.0			197.1			178.3
Total Premium Income		249.1			232.0			977.3			907.2			842.1
Net Investment Income		26.9			25.6			105.7			99.9			93.6
Other Income		0.1			-			0.4			0.9			1.1
Total Operating Revenue		276.1			257.6			1,083.4			1,008.0			936.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		120.2			111.4			464.0			437.8			441.4
Commissions		52.7			51.8			211.8			201.6			184.9
Deferral of Acquisition Costs		(55.5	)		(53.5	)		(223.8	)		(210.9	)		(187.6	)
Amortization of Deferred Acquisition Costs		41.9			38.7			166.4			153.9			144.4
Other Expenses		50.5			50.4			196.9			179.8			155.0
Total Benefits and Expenses		209.8			198.8			815.3			762.2			738.1
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses	$	66.3		$	58.8		$	268.1		$	245.8		$	198.7
Operating Ratios
Benefit Ratio		48.3	%		48.0	%		47.5	%		48.3	%		52.4	%
Other Expense Ratio		20.3	%		21.7	%		20.1	%		19.8	%		18.4	%
Before-tax Profit Margin		26.6	%		25.3	%		27.4	%		27.1	%		23.6	%
Premium Persistency:
Accident, Sickness, and Disability								75.8	%		75.9	%		74.9	%
Life								84.7	%		83.8	%		84.2	%
Cancer and Critical Illness								84.0	%		84.1	%		82.3	%

9

Unum Group Financial Results for Individual Disability - Closed Block Segment
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income	$	239.2		$	252.2		$	952.3		$	1,009.9		$	1,062.8
Net Investment Income		188.9			206.0			767.5			827.6			828.7
Other Income		25.3			25.1			98.6			103.7			105.1
Total Operating Revenue		453.4			483.3			1,818.4			1,941.2			1,996.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		388.0			404.9			1,544.8			1,614.5			1,709.7
Commissions		15.8			16.6			62.7			69.1			76.2
Interest and Debt Expense - Non-recourse Debt		7.0			8.3			35.1			8.3			-
Other Expenses		35.5			38.5			148.1			139.8			139.4
Total Benefits and Expenses		446.3			468.3			1,790.7			1,831.7			1,925.3
Operating Income Before Income Taxes
and Net Realized Investment Gains and Losses	$	7.1		$	15.0		$	27.7		$	109.5		$	71.3
Operating Ratios
Interest Adjusted Loss Ratio		82.6	%		83.8	%		82.2	%		84.1	%		90.5	%
Premium Persistency								93.8	%		94.3	%		94.4	%
Operating Income Before Income Taxes
and Net Realized Investment Gains and Losses,
as Reported	$	7.1		$	15.0		$	27.7		$	109.5		$	71.3
Settlement Agreements Claim Reassessment -
Reserve Charge		-			-			-			10.7			(47.2	)
Settlement Agreements Claim Reassessment -
Other Expense Charge		-			-			-			2.5			-
Operating Income Before Income Taxes and
Net Realized Investment Gains and Losses,
as Adjusted	$	7.1		$	15.0		$	27.7		$	96.3		$	118.5
Interest Adjusted Loss Ratio, as Adjusted		82.6	%		83.8	%		82.2	%		85.2	%		86.1	%

10

Unum Group Financial Results for Corporate and Other Segment
	Three Months Ended						Year Ended
	12/31/2008			12/31/2007			12/31/2008			12/31/2007			12/31/2006
Operating Revenue
Premium Income	$	0.5		$	0.2		$	1.4		$	1.7		$	4.5
Net Investment Income		42.3			54.7			197.5			181.0			170.7
Other Income		14.6			6.9			42.2			30.8			49.5
Total Operating Revenue		57.4			61.8			241.1			213.5			224.7
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		24.5			27.5			107.8			115.2			120.5
Commissions		0.2			0.4			1.2			1.9			3.0
Interest and Debt Expense		26.9			38.7			117.0			167.3			190.5
Cost Related to Early Retirement of Debt		-			55.6			0.4			58.8			25.8
Other Expenses		6.2			4.8			28.7			31.1			33.7
Total Benefits and Expenses		57.8			127.0			255.1			374.3			373.5
Operating Loss Before Income Taxes and
Net Realized Investment Gains and Losses	$	(0.4	)	$	(65.2	)	$	(14.0	)	$	(160.8	)	$	(148.8	)
Operating Loss Before Income Taxes and
Net Realized Investment Gains and Losses,
as Reported	$	(0.4	)	$	(65.2	)	$	(14.0	)	$	(160.8	)	$	(148.8	)
Broker Compensation Settlement		-			-			-			-			(18.5	)
Interest on Federal Income Tax Refund		-			-			-			-			2.6
Cost Related to Early Retirement of Debt		-			(55.6	)		-			(58.8	)		(25.8	)
Operating Loss Before Income Taxes and
Net Realized Investment Gains and Losses,
as Adjusted	$	(0.4	)	$	(9.6	)	$	(14.0	)	$	(102.0	)	$	(107.1	)

11

Unum Group Reserves
	December 31, 2008
	Gross															Total
	Policy					Claim Reserves										Reinsurance			Total
	Reserves		%			Incurred		IBNR		%			Total			Ceded			Net
Group Disability	$	-		-	%	$	7,799.1	$	583.1		34.3	%	$	8,382.2		$	81.1		$	8,301.1
Group Life and Accidental Death & Dismemberment		72.9		0.6			750.1		170.3		3.8			993.3			0.9			992.4
Individual Disability - Recently Issued		493.6		3.9			882.5		90.3		4.0			1,466.4			84.1			1,382.3
Long-term Care		2,915.3		22.9			295.9		35.2		1.3			3,246.4			48.9			3,197.5
Voluntary Benefits		925.5		7.2			21.1		37.0		0.2			983.6			19.1			964.5
Unum US Segment		4,407.3		34.6			9,748.7		915.9		43.6			15,071.9			234.1			14,837.8
Unum UK Segment		22.6		0.2			1,887.6		181.5		8.5			2,091.7			102.7			1,989.0
Colonial Life Segment		1,172.2		9.2			237.0		97.3		1.4			1,506.5			31.1			1,475.4
Individual Disability - Closed Block Segment		1,527.6		12.0			10,239.9		350.3		43.4			12,117.8			1,456.6			10,661.2
Corporate and Other Segment		5,605.4		44.0			490.7		270.1		3.1			6,366.2			4,853.8			1,512.4
Subtotal, Excluding Unrealized Adjustment	$	12,735.1		100.0	%	$	22,603.9	$	1,815.1		100.0	%		37,154.1			6,678.3			30,475.8
Unrealized Adjustment to Reserves for Unrealized
Investment Losses														(803.1	)		(31.9	)		(771.2	)
Consolidated													$	36,351.0		$	6,646.4		$	29,704.6

The decrease in the Unum US Segment IBNR from December 31, 2007 is due to a slight decline in insured lives in the group disability and group life and accidental death and dismemberment lines of business.

The increase in Unum US Segment Policy and Claim Reserves Incurred from December 31, 2007 is due primarily to growth in the active life reserves for the Unum US long-term care line of business.

The decrease in the Unum UK Segment amounts from December 31, 2007 is due primarily to the decline in the foreign exchange rate.

Unum Group implemented a new reserve valuation system for its US individual disability reserves, for generally accepted accounting principles (GAAP) reporting, during 2008.  The new system establishes claim reserves and incurred but not reported and in course of settlement claim liabilities using revised assumptions based on current experience and specified valuation methodologies.  The implementation did not have a material effect on our results of operations as reported under GAAP.  December 31, 2007 reserve categories have been reclassified to conform to current year presentation.  This change was implemented for statutory reporting in 2007 (see page 14.1).

12

Unum Group Reserves
	December 31, 2007
	Gross														Total
	Policy					Claim Reserves									Reinsurance		Total
	Reserves		%			Incurred		IBNR		%			Total		Ceded		Net
Group Disability	$	-		-	%	$	7,770.4	$	596.9		33.8	%	$	8,367.3	$	92.9	$	8,274.4
Group Life and Accidental Death & Dismemberment		73.9		0.6			772.4		178.5		3.8			1,024.8		3.4		1,021.4
Individual Disability - Recently Issued		458.4		3.8			808.3		86.6		3.6			1,353.3		79.4		1,273.9
Long-term Care		2,478.2		20.4			244.3		32.6		1.1			2,755.1		52.6		2,702.5
Voluntary Benefits		853.1		7.0			19.1		35.0		0.2			907.2		14.6		892.6
Unum US Segment		3,863.6		31.8			9,614.5		929.6		42.5			14,407.7		242.9		14,164.8
Unum UK Segment		30.7		0.2			2,420.4		268.8		10.8			2,719.9		149.3		2,570.6
Colonial Life Segment		1,091.7		9.0			239.9		104.1		1.4			1,435.7		33.4		1,402.3
Individual Disability - Closed Block Segment		1,657.2		13.6			10,043.5		362.0		42.0			12,062.7		1,374.4		10,688.3
Corporate and Other Segment		5,515.2		45.4			518.3		288.9		3.3			6,322.4		4,770.8		1,551.6
Subtotal, Excluding Unrealized Adjustment	$	12,158.4		100.0	%	$	22,836.6	$	1,953.4		100.0	%		36,948.4		6,570.8		30,377.6
Adjustment to Reserves for Unrealized
Investment Gains														859.3		-		859.3
Consolidated													$	37,807.7	$	6,570.8	$	31,236.9

12.1

Unum Group Investment Fact Sheet at December 31, 2008
Bonds (Fair Value)	12/31/08						Selected Statistics	12/31/08			9/30/08
Public (1)	$	20,479.3			64.1	%	Portfolio Yield (2)		6.72	%		6.70%
Asset-Backed Securities		281.9			0.9		Average Duration		7.47			7.62
Residential Mortgage-Backed Securities		3,659.6			11.5		Average Credit Quality		A			A
Commercial Mortgage-Backed Securities		4.0			-
Private Placements		3,307.0			10.4
High Yield		1,627.8			5.1
Government Securities		2,441.7			7.6
Municipal Securities		124.7			0.4
Total	$	31,926.0			100.0	%
Quality Ratings of Bonds	Book Value			Fair Value			Schedule BA and Non-Current
Aaa		19.4	%		22.0	%	Total Non-Current Investments	$	11.8		$	11.5
Aa		6.6			7.1		Total Schedule BA Assets	$	88.3		$	88.5
A		28.1			29.2
Baa		39.2			36.6
Below Baa		6.7			5.1
Total		100.0	%		100.0	%
(1) Includes $20.4 million of collateralized debt obligations.
(2) Bond equivalent yield is a book value and duration weighted average of the yield on the fixed income securities in the portfolio.

13

Unum Group Investment Fact Sheet at December 31, 2008
Fixed Maturity Bonds - By Industry Classification - Unrealized Gain/Loss
Classification	Fair Value		Net Unrealized Gain (Loss)			Fair Value of Bonds with Gross Unrealized Loss		Gross Unrealized Loss		Fair Value of Bonds with Gross Unrealized Gain		Gross Unrealized Gain
Basic Industry	$	1,789.3	$	(345.0	)	$	1,423.7	$	360.6	$	365.6	$	15.6
Canadian		254.2		57.5			-		-		254.2		57.5
Capital Goods		2,538.4		(327.3	)		1,719.1		418.6		819.3		91.3
Communications		1,945.6		(207.4	)		1,095.6		285.8		850.0		78.4
Consumer Cyclical		1,210.7		(298.7	)		907.8		315.9		302.9		17.2
Consumer Non-Cyclical		4,192.2		(168.7	)		2,445.4		303.6		1,746.8		134.9
Energy (Oil & Gas)		2,245.2		(170.1	)		1,347.1		252.0		898.1		81.9
Financial Institutions		2,577.8		(327.1	)		2,185.6		340.8		392.2		13.7
Mortgage/Asset-Backed		3,945.5		253.8			346.1		55.1		3,599.4		308.9
Sovereigns		947.2		56.3			357.6		12.6		589.6		68.9
Technology		633.3		(87.9	)		456.5		105.7		176.8		17.8
Transportation		888.0		(15.0	)		413.0		56.0		475.0		41.0
U.S. Government Agencies
and Municipalities		1,875.3		166.2			731.8		68.3		1,143.5		234.5
Utilities		6,883.3		(682.5	)		4,995.8		799.1		1,887.5		116.6
Total	$	31,926.0	$	(2,095.9	)	$	18,425.1	$	3,374.1	$	13,500.9	$	1,278.2

Fixed Maturity Bonds - Financial Institutions Classification - Unrealized Gain/Loss
Associations	$	12.1	$	-		$	12.1	$	-	$	-	$	-
Banking		1,463.4		(184.2	)		1,203.4		191.7		260.0		7.5
Bond Funds		20.4		(0.2	)		16.8		0.3		3.6		0.1
Brokerage		138.8		(14.7	)		136.0		14.7		2.8		-
Finance Non-Captive		58.2		(8.0	)		55.2		8.0		3.0		-
Finance Captive		155.9		(4.8	)		116.0		5.0		39.9		0.2
Insurance		619.0		(101.2	)		559.0		105.4		60.0		4.2
Other Financial Institutions		55.5		(0.3	)		32.6		2.0		22.9		1.7
Real Estate Management Services		54.5		(13.7	)		54.5		13.7		-		-
Total	$	2,577.8	$	(327.1	)	$	2,185.6	$	340.8	$	392.2	$	13.7

Gross Unrealized Loss on Fixed Maturity Bonds 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	$	2,226.2	$	171.3	$	153.4	$	25.6
91 through 180 days		3,260.8		336.7		294.3		66.2
181 through 270 days		2,463.4		307.5		319.7		80.7
271 days to 1 year		2,080.8		368.1		96.5		50.0
Greater than 1 year		6,855.5		1,535.4		674.5		432.6
Total	$	16,886.7	$	2,719.0	$	1,538.4	$	655.1

13.1

Unum Group Investment Fact Sheet at December 31, 2008
Asset and Mortgage-Backed Securities Portfolio
	Book Value		Fair Value				% of Total Bond Fair Value			Average Rating
Asset-Backed Securities
Credit Cards	$	324.8	$	277.0	7.0	%		0.9	%	AAA
Rate Reduction Bonds		4.7		4.4	0.1			-		AAA
Home Equity		1.3		0.5	-			-		A3
Collateralized Debt Obligations		-		-	-			-		-
Total		330.8		281.9	7.1			0.9		AAA
Residential Mortgage-Backed Securities
Agency CMOs		3,332.0		3,640.6	92.3			11.4		AAA
Whole Loans		24.7		19.0	0.5			0.1		AAA
Alt-A		-		-	-			-		-
Subprime		-		-	-			-		-
Collateralized Debt Obligations		-		-	-			-		-
Total		3,356.7		3,659.6	92.8			11.5		AAA
Commercial Mortgage-Backed Securities		4.2		4.0	0.1			-		AA1
Total	$	3,691.7	$	3,945.5	100.0	%		12.4	%	AAA

13.2

Unum Group Statutory Capital and Surplus
							As of
	As of December 31, 2008						December 31, 2007
	Capital and				Capital and		Capital and
	Surplus		AVR		Surplus + AVR		Surplus + AVR
Traditional U.S. Life Insurance Companies
Provident Life and Accident	$	428.4	$	67.6	$	496.0	$	503.2
Unum Life of America		1,353.3		131.2		1,484.5		1,622.3
Paul Revere Life (1)		340.3		27.0		367.3		496.6
Colonial Life & Accident		379.6		18.4		398.0		388.9
Provident Life and Casualty		121.1		4.2		125.3		101.9
First Unum Life		193.8		12.5		206.3		193.8
Paul Revere Variable (1)		94.7		0.2		94.9		115.1
(1) Capital and Surplus of Paul Revere Variable is included in Paul Revere Life
Special Purpose Reinsurance Vehicles
Tailwind Reinsurance Company	$	111.8	$	-	$	111.8	$	125.2
Northwind Reinsurance Company		1,188.7		1.7		1,190.4		1,254.5
UnumProvident International Ltd.		512.9		-		512.9		343.4

14

Unum Group Statutory Operating Results
	Twelve Months Ended December 31
															Net Realized Investment Gains (Losses) After Tax
	Net Gain (Loss) from Operations After Tax														and Transfers to IMR						Net Income (Loss)
	2008			2007																	2008			2007
				Before Infrequent or		Northwind Ceding			Claim Reassessment															Before Infrequent or			Northwind Ceding			Claim Reassessment
	Total			Unusual Items		Commissions			Charge			Total			2008			2007			Total			Unusual Items			Commissions			Charge			Total
Provident Life and Accident	$	125.2		$	210.5	$	(218.9	)	$	2.5		$	(5.9	)	$	(7.0	)	$	(11.9	)	$	118.2		$	198.6		$	(218.9	)	$	2.5		$	(17.8	)
Unum Life of America		268.8			299.9		-			(50.5	)		249.4			(77.9	)		(54.4	)		190.9			245.5			-			(50.5	)		195.0
Paul Revere Life		110.9			185.9		-			5.2			191.1			(32.3	)		3.1			78.6			189.0			-			5.2			194.2
Colonial Life & Accident		124.1			114.4		-			-			114.4			(14.8	)		2.0			109.3			116.4			-			-			116.4
Provident Life and Casualty		22.6			15.8		-			0.6			16.4			-			-			22.6			15.8			-			0.6			16.4
First Unum Life		24.8			17.9		-			(0.1	)		17.8			(5.3	)		2.9			19.5			20.8			-			(0.1	)		20.7
Paul Revere Variable		5.6			5.9		-			-			5.9			(3.9	)		-			1.7			5.9			-			-			5.9
Total - Traditional U.S. Life
Insurance Companies	$	682.0		$	850.3	$	(218.9	)	$	(42.3	)	$	589.1		$	(141.2	)	$	(58.3	)	$	540.8		$	792.0		$	(218.9	)	$	(42.3	)	$	530.8
Tailwind Reinsurance Company	$	13.9		$	24.9	$	-		$	-		$	24.9		$	(1.2	)	$	0.1		$	12.7		$	25.0		$	-		$	-		$	25.0
Northwind Reinsurance Company		67.3			131.1		(267.9	)		-			(136.8	)		(0.2	)		0.3			67.1			131.4			(267.9	)		-			(136.5	)
UnumProvident International Ltd.		(6.5	)		90.6		-			-			90.6			(0.4	)		(0.8	)		(6.9	)		89.8			-			-			89.8
Total - Special Purpose
Reinsurance Vehicles	$	74.7		$	246.6	$	(267.9	)	$	-		$	(21.3	)	$	(1.8	)	$	(0.4	)	$	72.9		$	246.2		$	(267.9	)	$	-		$	(21.7	)
	Three Months Ended December 31
												Net Realized Investment
												Gains (Losses) After Tax
	Net Gain (Loss) from Operations After Tax											and Transfers to IMR						Net Income (Loss)
	2008			2007														2008			2007
				Before		Northwind															Before			Northwind
				Infrequent or		Ceding															Infrequent or			Ceding
	Total			Unusual Items		Commissions			Total			2008			2007			Total			Unusual Items			Commissions			Total
Provident Life and Accident	$	55.2		$	47.7	$	(218.9	)	$	(171.2	)	$	(9.9	)	$	2.5		$	45.3		$	50.2		$	(218.9	)	$	(168.7	)
Unum Life of America		71.2			78.3		-			78.3			(36.4	)		(4.1	)		34.8			74.2			-			74.2
Paul Revere Life		51.4			70.1		-			70.1			(30.9	)		11.5			20.5			81.6			-			81.6
Colonial Life & Accident		36.3			29.0		-			29.0			(4.0	)		2.1			32.3			31.1			-			31.1
Provident Life and Casualty		6.6			-		-			-			-			-			6.6			-			-			-
First Unum Life		5.4			1.7		-			1.7			(2.7	)		3.2			2.7			4.9			-			4.9
Paul Revere Variable		1.3			0.5		-			0.5			0.4			-			1.7			0.5			-			0.5
Total - Traditional U.S. Life
Insurance Companies	$	227.4		$	227.3	$	(218.9	)	$	8.4		$	(83.5	)	$	15.2		$	143.9		$	242.5		$	(218.9	)	$	23.6
Tailwind Reinsurance Company	$	2.5		$	3.6	$	-		$	3.6		$	(0.1	)	$	-		$	2.4		$	3.6		$	-		$	3.6
Northwind Reinsurance Company		(9.7	)		131.1		(267.9	)		(136.8	)		(0.2	)		0.3			(9.9	)		131.4			(267.9	)		(136.5	)
UnumProvident International Ltd.		16.4			4.5		-			4.5			(0.4	)		(0.1	)		16.0			4.4			-			4.4
Total - Special Purpose
Reinsurance Vehicles	$	9.2		$	139.2	$	(267.9	)	$	(128.7	)	$	(0.7	)	$	0.2		$	8.5		$	139.4		$	(267.9	)	$	(128.5	)

Note: Statutory results for our domestic insurers are reported in conformity with statutory accounting principles as prescribed by the National Association of Insurance Commissioners and adopted by the applicable state laws. For UnumProvident International Ltd., results are reported in conformity with accounting principles as prescribed by applicable Bermuda laws. Unum Group implemented a new reserve valuation system for its individual disability reserves during 2007, effective January 1, 2007. The new system establishes active life and claim reserves and incurred but not reported (IBNR) and in course of settlement (ICOS) claim liabilities using revised assumptions based on current experience, minimum reserving requirements, and specified valuation methodologies. The change in the active life and claim reserves was reported as a change in valuation basis and was recorded directly to statutory surplus rather than as a part of the reserve change recognized in the summary of operations. The change in the IBNR and ICOS claim liabilities was recognized as a reserve change in the summary of operations. The implementation increased the 2007 net gain from operations after tax and net income $114.9 million in the third quarter and $79.6 million in the fourth quarter, respectively.

14.1

Unum Life Insurance Company of America - Statutory Basis
Group Accident and Health Statutory Claim Reserves and Liabilities, Net of Ceded
On Claims Incurred Prior to January 1
	2008			2007			2006
Reserve Balance from Prior Year End	$	6,904.6		$	6,686.6		$	5,192.8
Reinsurance Recapture		-			-			891.4
Other Adjustments to Beginning Balance (see Schedule H)		-			46.4			15.9
Reserve Balance January 1 (a)		6,904.6			6,733.0			6,100.1
Paid on Prior Year Claims		(397.2	)		(437.4	)		(395.9	)
Interest Earned on Reserves		111.0			108.3			102.1
Incurred on Prior Year Claims		(33.7	)		8.7			45.6
Reserve Charges Incurred for Settlement Agreements		-			-			68.4
Reserve Balance March 31	$	6,584.7		$	6,412.6		$	5,920.3
Reserve Balance March 31	$	6,584.7		$	6,412.6		$	5,920.3
Paid on Prior Year Claims		(347.2	)		(398.4	)		(348.3	)
Interest Earned on Reserves		105.8			104.5			99.3
Incurred on Prior Year Claims		(74.6	)		2.1			51.4
Reserve Charges Incurred for Settlement Agreements		-			77.3			-
Reserve Balance June 30	$	6,268.7		$	6,198.1		$	5,722.7
Reserve Balance June 30	$	6,268.7		$	6,198.1		$	5,722.7
Paid on Prior Year Claims		(315.3	)		(355.9	)		(350.6	)
Interest Earned on Reserves		102.6			94.6			97.6
Incurred on Prior Year Claims		(51.5	)		(18.3	)		(11.9	)
Reserve Charges Incurred for Settlement Agreements		-			-			246.0
Reserve Balance September 30	$	6,004.5		$	5,918.5		$	5,703.8
Reserve Balance September 30	$	6,004.5		$	5,918.5		$	5,703.8
Paid on Prior Year Claims		(287.2	)		(296.2	)		(314.5	)
Interest Earned on Reserves		99.1			89.5			94.5
Incurred on Prior Year Claims		(71.2	)		4.9			2.7
Reserve Balance December 31 on Prior Year Claims		5,745.2			5,716.7			5,486.5
Reserve Balance December 31 on Current Year Claims		1,237.4			1,187.9			1,200.1
Reserve Balance December 31 on Total Claims Incurred (b)	$	6,982.6		$	6,904.6		$	6,686.6
(a) balances to Schedule H Part 3 Line 3.2 Column 2
(b) balances to Schedule H Part 2 Line C.1 Column 2

14.2

Reconciliation to Unum Life Insurance Company of America - Statutory Basis
Schedule H Part 3 for Group Accident and Health
	2008			2007		2006
Paid on Prior Year Existing Claims - Full Year	$	1,346.9		$	1,487.9	$	1,409.2
(balances to Schedule H Part 3 Line 1.1 Column 2)
Incurred on Prior Year Claims - Full Year	$	(231.0	)	$	74.7	$	402.1
Interest Earned on Reserves - Full Year		418.5			396.9		393.5
Incurred on Prior Year Claims - Full Year, Excluding Interest Earned	$	187.5		$	471.6	$	795.6
(balances to Schedule H Part 3 Line 3.3 Column 2)
Note: Group A&H for Unum Life Insurance Company of America includes group long- and short-term disability, group accidental death & dismemberment, and group voluntary disability, cancer, and critical illness products reported in our Unum US segment as well as the reinsurance pools reported in our Corporate and Other segment.

14.3

Notes to Statistical Supplement

Non-GAAP Financial Measures

We analyze our Company’s performance using non-GAAP financial measures which exclude certain items and the related tax thereon from net income.  We believe operating income or loss excluding realized investment gains and losses, which are recurring, is a better performance measure and a better indicator of the profitability and underlying trends in our business.  Realized investment gains and losses are dependent on market conditions and general economic events and are not necessarily related to decisions regarding our Company’s underlying business.  We also believe that the exclusion of certain other items specified and presented in the reconciliations on the segment financial results pages throughout this supplement enhances the understanding and comparability of our Company’s performance and the underlying fundamentals in our operations, but this exclusion is not an indication that similar items may not recur.

2008 Significant Transactions and Events

Reporting Segment Changes

Effective with the fourth quarter of 2008, we made slight modifications to our reporting segments to better align the debt of our securitizations with the business segments and to align the allocation of capital for Unum UK similar to that of Unum US and Colonial Life.  Specifically, we moved the assets, non-recourse debt, and associated capital of Tailwind Holdings, LLC (Tailwind Holdings) and Northwind Holdings, LLC (Northwind Holdings) from our former Corporate segment to Unum US group disability and Individual Disability – Closed Block, respectively.  We transferred excess assets, capital in excess of target, and the associated investment income from Unum UK to our Corporate and Other segment.  We also modified the investment income allocation on capital supporting certain of our group disability and long-term care product lines within Unum US and have also aggregated our former Other segment and Corporate segment into one reporting segment.  Financial results previously reported have been revised to reflect these reclassifications.

Stock Repurchase Agreement

During 2007, our board of directors authorized the repurchase of up to $700.0 million of Unum Group’s common stock.  In January 2008, we repurchased approximately 14.0 million shares for $350.0 million, using an accelerated share repurchase agreement.  Under the terms of the repurchase agreement, we were to receive, or be required to pay, a price adjustment based on the volume weighted average price of our common stock during the term of the agreement.  Any price adjustment payable to us was to be settled in shares of our common stock.  Any price adjustment we would have been required to pay was to be settled, at our option, in either cash or common stock.  The final settlement occurred during the second quarter of 2008, and in total, we repurchased 15.4 million shares of our common stock under this agreement. 

During August 2008, we repurchased approximately 12.5 million shares for $350.0 million, using an accelerated share repurchase agreement with terms similar to the earlier agreement.  The final settlement occurred during October 2008, with the price adjustment resulting in the delivery to us of approximately 2.0 million additional shares of our common stock, for a total repurchase of 14.5 million shares.

(continued on next page)

15

Financing

During 2008, we purchased and retired $17.8 million of our outstanding 5.859% notes and $175.0 million of our 5.997% senior notes.  We made principal payments of $59.3 million and $10.0 million on our senior secured non-recourse variable rate notes issued by Northwind Holdings and Tailwind Holdings, respectively.  We also purchased and retired $36.6 million of our 6.85% senior debentures due 2015.  The costs associated with this debt reduction decreased our 2008 income approximately $0.4 million before tax, or $0.3 million after tax.

2007 Significant Transactions and Events

Revised Claim Reassessment Reserve Estimate

In the second quarter of 2007, we increased our provision for the estimated cost of the claim reassessment process $53.0 million before tax and $34.5 million after tax based on changes in our emerging experience for the number of decisions being overturned and the average cost per reassessed claim.  The claim reassessment process was implemented as a result of the settlement agreements we entered into with various state insurance regulators in 2004 and 2005.

Disposition

During the first quarter of 2007, we closed the sale of our wholly-owned subsidiary GENEX Services, Inc. (GENEX).  Financial results for GENEX are reported as discontinued operations.  The after-tax gain recognized on the sale was $6.2 million.

Financing

The scheduled remarketing of the senior note element of the adjustable conversion-rate equity security units (units) issued in May 2004 occurred in February 2007, as stipulated by the terms of the original offering, and we reset the interest rate on $300.0 million of senior notes due May 15, 2009 to 5.859%.  We purchased $150.0 million of the senior notes in the remarketing which were subsequently retired.  The associated write-off of deferred debt costs decreased first quarter of 2007 income by $2.4 million before tax, or $1.6 million after tax.  In May 2007, we settled the purchase contract element of the units by issuing 17.7 million shares of common stock.  We received proceeds of approximately $300.0 million from the transaction.

During the second quarter of 2007, we purchased $34.5 million aggregate principal amount of our outstanding 6.85% notes due 2015.  The costs associated with this debt reduction decreased our second quarter 2007 income approximately $0.8 million before tax, or $0.6 million after tax.

In the fourth quarter of 2007, we purchased and retired $17.5 million of our outstanding 6.75% notes scheduled to mature in 2028.  Pursuant to a cash tender offer, we tendered $23.5 million aggregate principal amount of the 7.405% junior subordinated debt securities due 2038; $99.9 million aggregate principal amount of the 7.625% notes due 2011; $210.5 million aggregate principal amount of the 7.375% notes due 2032; and $66.1 million aggregate principal amount of the 6.75% notes due 2028.  We also called and retired all $150.0 million principal amount of our outstanding 7.25% notes scheduled to mature in 2032.  The costs associated with this debt reduction decreased our fourth quarter 2007 income approximately $55.6 million before tax, or $36.1 million after tax.

(continued on next page)

15.1

In October 2007, Northwind Holdings issued $800.0 million of senior secured notes in a private placement.  Interest on the notes is variable based upon the three month London Interbank Offered Rate (LIBOR) plus a margin.  None of Unum Group or any other affiliate of Northwind Holdings is an obligor or guarantor on the notes.

During 2007, we made principal payments of $17.5 million on our senior secured notes due 2036 which were issued by Tailwind Holdings. 

Accounting Principle Changes

Effective January 1, 2007, we adopted Statement of Position 05-1 (SOP 05-1), Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts.  SOP 05-1 provides guidance on accounting by insurance enterprises for deferred acquisition costs on internal replacements of insurance and investment contracts other than those specifically described in Statement of Financial Accounting Standards No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments.  The cumulative effect of applying the provisions of SOP 05-1 decreased our 2007 opening balance of retained earnings $445.2 million.

Effective January 1, 2007, we adopted Financial Accounting Standards Board Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109 (SFAS 109).  FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with SFAS 109.  Additionally, FIN 48 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.  The cumulative effect of applying the provisions of FIN 48 increased our 2007 opening balance of retained earnings $22.7 million.

2006 Significant Transactions and Events

Revised Claim Reassessment Reserve Estimate

In the first quarter of 2006, we completed an analysis of our assumptions related to the reserves we established for the claim reassessment process.  Our analysis was based on preliminary data as of the end of the first quarter of 2006, when actual results to date were considered credible enough to enable us to update our initial expectations of costs related to the reassessment process.  We concluded that a change in our initial assumptions, primarily related to the number of claimants for whom payments will continue because the claimant remains eligible for disability payments, was warranted.  We based our conclusion and our revised estimate on the information that existed at that time, which was the actual cost related to approximately 20 percent of the projected ultimate total number of claims expected to be reassessed.  The characteristics, profile, and cost of those initial 20 percent of claims were more statistically credible than the information on which we based the initial charges in 2004 and 2005.  Based on our analysis, in the first quarter of 2006 we recorded a charge of $86.0 million before tax, or $55.9 million after tax, to reflect our then current estimate of future obligations for benefit costs for claims reopened in the reassessment.The first quarter charge decreased before-tax operating results for our Unum US group disability line of business $72.8 million and our Individual Disability – Closed Block segment $13.2 million.

(continued on next page)

15.2

In the third quarter of 2006 we increased our provision for the cost of the reassessment process $325.4 million before tax and $211.5 million after tax based on changes in our emerging experience for the number of decisions being overturned by the reassessment process and the average cost per reassessed claim.  The revised third quarter estimate was based on the cost of approximately 55 percent of the projected ultimate total number of claims expected to be reassessed.  The third quarter charge was comprised of $310.4 million to reflect our revised estimate of future obligations for benefit costs for claims reopened in the reassessment and $15.0 million for additional incremental direct claim reassessment operating expenses because of the additional time then estimated to complete the process. Our best estimate of $310.4 million for the reopened claims assumed that the nature and characteristics of the approximately 45 percent remaining claims estimated to be reassessed at that time would be similar to the average profile of the 55 percent already reviewed at that time.  The third quarter charge decreased before-tax operating results for our Unum US group disability line of business $291.4 million and our Individual Disability – Closed Block segment $34.0 million. 

Broker Compensation Settlement

In June 2004, we received a subpoena from the Office of the New York Attorney General (NYAG) requesting documents and information relating to compensation arrangements between insurance brokers or intermediaries and our subsidiaries.  In November 2006, we entered into a settlement agreement with the NYAG in the form of an assurance of discontinuance that provided for a national restitution fund of $15.5 million, a fine of $1.9 million, and certain other expenses approximating $1.1 million.

Income Tax

In the fourth quarter of 2006, we recorded income of $2.6 million before tax and approximately $3.9 million after tax attributable to the receipt of interest and tax refunds on prior year tax items in excess of what was previously provided.  Additionally, in the fourth quarter of 2006 we recognized an income tax benefit of approximately $91.9 million as the result of the reversal of tax liabilities related primarily to group relief benefits recognized from the use of net operating losses in a foreign jurisdiction in which our businesses operate.

Financing

In the second quarter of 2006, pursuant to a cash tender offer, we purchased $50.0 million of our outstanding 7.405% junior subordinated debt securities due 2038 and $250.0 million aggregate principal amount of our outstanding 7.625% notes due 2011.  The cost of the cash tender offer decreased second quarter 2006 income by $17.8 million before tax, or $11.6 million after tax.  In the fourth quarter of 2006, we purchased $32.0 million of our outstanding 6.850% notes due 2015 on the open market.  The cost of the debt purchase decreased fourth quarter 2006 income by $2.7 million before tax, or $1.9 million after tax.

(continued on next page)

15.3

The scheduled remarketing of the senior note element of the units issued in May 2003 occurred in February 2006, as stipulated by the terms of the original offering, and we reset the interest rate on $575.0 million of senior notes due May 15, 2008 to 5.997%.  We purchased $400.0 million of the senior notes in the remarketing which were subsequently retired.  The associated write-off of deferred debt costs decreased first quarter of 2006 income by $5.3 million before tax, or $3.4 million after tax.  In May 2006, we settled the purchase contract element of the units by issuing 43.3 million shares of common stock.  We received proceeds of approximately $575.0 million from the transaction.

In November 2006, Tailwind Holdings issued $130.0 million of senior, secured notes in a private placement.  Interest on the notes is variable based upon LIBOR plus a margin.  None of Unum Group or any other affiliate of Tailwind Holdings is an obligor or guarantor on the notes.

Accounting Principle Changes

Effective January 1, 2006, we adopted Statement of Financial Accounting Standards No. 123 (revised 2004) (SFAS 123(R)), Share-Based Payment.  SFAS 123(R) focuses primarily on accounting for transactions in which an entity obtains employee service in exchange for share-based payments.  The adoption of SFAS 123(R) did not have a material effect on our financial position or results of operations.

Effective December 31, 2006, we adopted the provisions of Statement of Financial Accounting Standards No. 158 (SFAS 158), Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans.  SFAS 158 requires an employer to recognize the overfunded or underfunded status of a defined benefit pension and other postretirement plans as an asset or liability in its balance sheet and to recognize changes in that funded status through comprehensive income.  Also, under SFAS 158, defined benefit pension and other postretirement plan assets and obligations are to be measured as of the date of the employer’s fiscal year-end.  The adoption of SFAS 158, which resulted in an $84.1 million decrease in accumulated other comprehensive income in stockholders’ equity, had no effect on our results of operations.

15.4