UnumProvident

Statistical Supplement Third Quarter 2006

TABLE OF CONTENTS

(dollars in millions, except share data)

Interim Results are Unaudited

	Page
Financial Highlights	1
Consolidated Statements of Operations	2
Financial 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
U.S. Brokerage	7
Unum Limited	8
Colonial	9
Individual Income Protection - Closed Block	10
Other	11
Corporate	12
Reserves and Policyholder Benefits	13
Investment Fact Sheets	14
Statutory-Basis Financial Information	15
Notes to Statistical Supplement	16

Throughout this supplement, segment operating results exclude income taxes and realized investment gains and losses.

See “Notes to Statistical Supplement” on page 16 for a discussion of non-GAAP financial measures.

N.M. = not a meaningful percentage

UnumProvident Financial Highlights

	Three Months Ended						Nine Months Ended					Year Ended
	9/30/2006			9/30/2005			9/30/2006		9/30/2005			12/31/2005			12/31/2004			12/31/2003
Financial Results
Premium Income	$	1,969.0		$	1,952.2		$	5,926.2	$	5,827.2		$	7,815.6		$	7,839.6		$	7,615.7
Segment Operating Revenue	$	2,658.2		$	2,615.3		$	7,975.4	$	7,781.6		$	10,443.9		$	10,435.7		$	10,165.4
Net Realized Investment Gain (Loss)		4.8			(71.4	)		1.5		(9.1	)		(6.7	)		29.2			(173.8	)
Revenue	$	2,663.0		$	2,543.9		$	7,976.9	$	7,772.5		$	10,437.2		$	10,464.9		$	9,991.6
Income (Loss) from Continuing Operations Before Cumulative
Effect of Accounting Principle Change	$	(63.7	)	$	52.6		$	134.9	$	376.1		$	513.6		$	(192.2	)	$	(264.6	)
Loss from Discontinued Operations, net of tax		—			—			—		—			—			(60.8	)		(161.7	)
Cumulative Effect of Accounting Principle Change, net of tax		—			—			—		—			—			—			39.9
Net Income (Loss)	$	(63.7	)	$	52.6		$	134.9	$	376.1		$	513.6		$	(253.0	)	$	(386.4	)
Assets							$	52,171.5	$	51,146.9		$	51,866.8		$	50,832.3		$	49,718.3
Stockholders’ Equity							$	7,594.4	$	7,237.7		$	7,363.9		$	7,224.1		$	7,271.0

2006

• Three months ended September 30, 2006 net loss includes a claim reassessment charge of $325.4 million before tax, or $211.5 million after tax, and nine months ended September 30, 2006 net income includes claim reassessment charges of $411.4 million before tax, or $267.4 million after tax.

• Three months and nine months ended September 30, 2006 net income (loss) includes broker compensation settlement expenses of $18.5 million before tax, or $12.7 million after tax.

• Nine months ended September 30, 2006 net income includes costs related to early retirement of debt of $23.1 million before tax and $15.0 million after tax.

2005

• Three months and nine months ended September 30, 2005 and full year 2005 net income includes a charge of $75.0 million before tax, or $51.6 million after tax, related to the settlement agreement with the California Department of Insurance and related matters.

• Three months and nine months ended September 30, 2005 and full year 2005 net income includes a gain on the sale of the U.K. Netherlands branch of $5.7 million before tax and $4.0 million after tax.

• Three months ended September 30, 2005 net income includes a $10.8 million income tax benefit. Nine months ended September 30, 2005 and full year 2005 net income includes an income tax benefit of $42.8 million related to the reduction of income tax liabilities.

2004

• Full year 2004 net loss includes a charge of $127.0 million before tax, or $87.8 million after tax, related to the settlement of the multistate market conduct examination.

• Full year 2004 net loss includes a charge of $967.0 million before tax, or $701.0 million after tax, related to the restructuring of the individual income protection—closed block business.

2003

• Full year 2003 net loss includes a charge of $894.0 million before tax, or $581.1 million after tax, related to the U.S. Brokerage group income protection reserve strengthening.

See “Notes to Statistical Supplement” on page 16 for additional information.

1

UnumProvident Financial Highlights

	Three Months Ended					Nine Months Ended				Year Ended
	9/30/2006			9/30/2005		9/30/2006		9/30/2005		12/31/2005		12/31/2004			12/31/2003
Per Common Share Information
Assuming Dilution:
Income (Loss) from Continuing Operations Before Cumulative Effect of Accounting Principle Change	$	(0.19	)	$	0.17	$	0.41	$	1.21	$	1.64	$	(0.65	)	$	(0.96	)
Loss from Discontinued Operations, net of tax		—			—		—		—		—		(0.21	)		(0.58	)
Cumulative Effect of Accounting Principle Change, net of tax		—			—		—		—		—		—			0.14
Net Income (Loss)	$	(0.19	)	$	0.17	$	0.41	$	1.21	$	1.64	$	(0.86	)	$	(1.40	)
Basic:
Income (Loss) from Continuing Operations Before Cumulative Effect of Accounting Principle Change	$	(0.19	)	$	0.18	$	0.42	$	1.27	$	1.74	$	(0.65	)	$	(0.96	)
Loss from Discontinued Operations, net of tax		—			—		—		—		—		(0.21	)		(0.58	)
Cumulative Effect of Accounting Principle Change, net of tax		—			—		—		—		—		—			0.14
Net Income (Loss)	$	(0.19	)	$	0.18	$	0.42	$	1.27	$	1.74	$	(0.86	)	$	(1.40	)
Dividends Paid	$	0.0750		$	0.0750	$	0.2250	$	0.2250	$	0.3000	$	0.3000		$	0.3725
Book Value						$	22.17	$	24.29	$	24.66	$	24.36		$	24.55
Price (UNM closing price on last trading day of period)						$	19.39	$	20.50	$	22.75	$	17.94		$	15.77

1.1

UnumProvident Consolidated Statements of Operations

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Revenue
Premium Income	$	1,969.0		$	1,952.2		$	5,926.2		$	5,827.2		$	7,815.6		$	7,839.6		$	7,615.7
Net Investment Income		578.8			547.2			1,719.2			1,623.4			2,188.3			2,158.7			2,158.4
Net Realized Investment Gain (Loss)		4.8			(71.4	)		1.5			(9.1	)		(6.7	)		29.2			(173.8	)
Other Income		110.4			115.9			330.0			331.0			440.0			437.4			391.3
Total Revenue		2,663.0			2,543.9			7,976.9			7,772.5			10,437.2			10,464.9			9,991.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		2,088.9			1,812.1			5,764.3			5,280.6			7,083.2			7,248.4			7,868.1
Commissions		198.9			191.5			613.5			609.4			804.7			842.3			844.1
Interest and Debt Expense		44.2			49.8			146.0			155.5			208.0			207.1			187.2
Cost Related to Early Retirement of Debt		—			—			23.1			—			—			—			—
Deferral of Policy Acquisition Costs		(127.5	)		(119.5	)		(392.8	)		(402.1	)		(519.4	)		(557.3	)		(665.9	)
Amortization of Deferred Policy Acquisition Costs		115.9			112.5			353.7			349.4			463.7			436.7			458.6
Amortization of Value of Business Acquired		2.1			3.9			6.0			11.9			15.1			15.8			37.5
Impairment of Intangible Assets		—			—			—			—			—			856.4			—
Other Operating Expenses		435.1			425.3			1,253.8			1,252.1			1,672.3			1,675.0			1,697.2
Total Benefits and Expenses		2,757.6			2,475.6			7,767.6			7,256.8			9,727.6			10,724.4			10,426.8
Income (Loss) from Continuing Operations Before Income Taxes and Cumulative Effect of Accounting Principle Change		(94.6	)		68.3			209.3			515.7			709.6			(259.5	)		(435.2	)
Income Taxes (Benefit)		(30.9	)		15.7			74.4			139.6			196.0			(67.3	)		(170.6	)
Income (Loss) from Continuing Operations Before Cumulative Effect of Accounting Principle Change		(63.7	)		52.6			134.9			376.1			513.6			(192.2	)		(264.6	)
Loss from Discontinued Operations, net of tax		—			—			—			—			—			(60.8	)		(161.7	)
Cumulative Effect of Accounting Principle Change, net of tax		—			—			—			—			—			—			39.9
Net Income (Loss)	$	(63.7	)	$	52.6		$	134.9		$	376.1		$	513.6		$	(253.0	)	$	(386.4	)
Average Number of Shares Outstanding
Basic		340,727,665			295,767,170			319,209,356			295,628,573			295,776,405			295,224,305			276,132,176
Dilutive Securities:
Purchase Contracts		—			16,156,382			9,868,520			12,432,463			14,297,834			—			—
Options and Other Dilutive Securities		—			2,724,576			2,234,637			2,398,406			2,438,404			—			—
Assuming Dilution		340,727,665			314,648,128			331,312,513			310,459,442			312,512,643			295,224,305			276,132,176
Actual Number of Shares Outstanding								342,541,722			298,019,247			298,557,764			296,545,913			296,143,422

2

UnumProvident Financial Sales Data

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006		9/30/2005		% Change		9/30/2006		9/30/2005		% Change		12/31/2005		12/31/2004		12/31/2003
U.S. Brokerage Segment
Fully Insured Products
Group Long-term Income Protection	$	25.4	$	27.6	(8.0	)%	$	119.4	$	112.3	6.3	%	$	180.4	$	180.4	$	299.1
Group Short-term Income Protection		9.8		11.5	(14.8	)		40.6		42.2	(3.8	)		74.8		79.5		127.2
Group Life		17.7		23.4	(24.4	)		94.4		93.6	0.9			157.8		166.5		241.6
Accidental Death & Dismemberment		1.8		1.7	5.9			7.7		8.4	(8.3	)		14.7		12.8		26.6
Individual Income Protection - Recently Issued		14.1		13.4	5.2			39.0		38.7	0.8			53.8		61.6		72.9
Group Long-term Care		5.5		4.3	27.9			13.8		14.7	(6.1	)		21.1		18.7		27.0
Individual Long-term Care		2.9		3.5	(17.1	)		8.4		9.9	(15.2	)		13.0		19.5		43.9
Voluntary Workplace Benefits		28.2		27.5	2.5			108.7		102.7	5.8			130.2		114.1		105.8
Total Fully Insured Products		105.4		112.9	(6.6	)		432.0		422.5	2.2			645.8		653.1		944.1
Administrative Services Only (ASO) Products
Group Long-term Income Protection		—		0.9	(100.0	)		0.5		1.5	(66.7	)		1.8		1.1		6.5
Group Short-term Income Protection		0.4		0.8	(50.0	)		3.6		2.2	63.6			5.8		7.3		14.4
Total ASO Products		0.4		1.7	(76.5	)		4.1		3.7	10.8			7.6		8.4		20.9
U.S. Brokerage Segment		105.8		114.6	(7.7	)		436.1		426.2	2.3			653.4		661.5		965.0
Unum Limited Segment
Group Long-term Income Protection		18.0		17.1	5.3			39.3		73.7	(46.7	)		91.2		103.3		81.5
Group Life		6.0		6.4	(6.3	)		13.7		27.2	(49.6	)		33.0		68.1		27.7
Individual Income Protection		1.4		1.2	16.7			4.1		6.5	(36.9	)		8.1		11.1		19.4
Unum Limited Segment		25.4		24.7	2.8			57.1		107.4	(46.8	)		132.3		182.5		128.6
Colonial Segment
Income Protection		46.1		38.8	18.8			134.4		116.8	15.1			176.8		172.5		182.7
Life		15.3		13.0	17.7			44.5		41.1	8.3			60.6		58.6		57.2
Cancer and Critical Illness		11.5		10.1	13.9			34.3		31.2	9.9			49.0		47.4		45.3
Colonial Segment		72.9		61.9	17.8			213.2		189.1	12.7			286.4		278.5		285.2
Individual Income Protection - Closed Block Segment		1.1		1.6	(31.3	)		3.5		4.8	(27.1	)		6.5		7.8		12.1
Total Sales from Continuing Operations		205.2		202.8	1.2			709.9		727.5	(2.4	)		1,078.6		1,130.3		1,390.9
Sales from Discontinued Operations		—		—	—			—		—	—			—		10.1		36.6
Total	$	205.2	$	202.8	1.2		$	709.9	$	727.5	(2.4	)	$	1,078.6	$	1,140.4	$	1,427.5

3

UnumProvident Consolidated Balance Sheets

	September 30, 2006			December 31,
				2005			2004
Assets
Investments
Fixed Maturity Securities	$	34,721.3		$	34,856.8		$	32,488.4
Mortgage Loans		893.2			739.4			498.2
Real Estate		18.0			18.2			27.4
Policy Loans		3,319.6			3,201.4			3,073.6
Other Long-term Investments		118.5			122.8			89.9
Short-term Investments		489.3			417.9			410.2
Total Investments		39,559.9			39,356.5			36,587.7
Cash and Bank Deposits		32.2			69.4			130.7
Accounts and Premiums Receivable		2,041.4			1,979.2			2,033.1
Reinsurance Receivable		5,573.3			5,609.2			6,969.2
Accrued Investment Income		675.1			618.7			588.3
Deferred Policy Acquisition Costs		2,965.0			2,913.3			2,882.5
Value of Business Acquired		77.6			78.5			101.5
Goodwill		274.3			273.0			271.1
Income Tax Asset		18.4			—			—
Other Assets		926.3			939.4			1,236.5
Separate Account Assets		28.0			29.6			31.7
Total Assets	$	52,171.5		$	51,866.8		$	50,832.3
Liabilities
Policy and Contract Benefits	$	2,193.7		$	2,063.4		$	1,841.6
Reserves for Future Policy and Contract Benefits		35,109.5			34,041.5			33,224.8
Unearned Premiums		560.7			481.8			500.8
Other Policyholders’ Funds		2,060.4			2,235.5			2,425.3
Income Tax Liability		730.8			1,008.0			1,060.9
Short-term Debt		—			—			227.0
Long-term Debt		2,561.6			3,261.6			2,862.0
Other Liabilities		1,332.4			1,381.5			1,434.1
Separate Account Liabilities		28.0			29.6			31.7
Total Liabilities		44,577.1			44,502.9			43,608.2
Stockholders’ Equity
Common Stock		34.4			30.1			29.8
Additional Paid-in Capital		2,195.5			1,627.9			1,588.4
Accumulated Other Comprehensive Income		743.5			1,163.5			1,481.1
Retained Earnings		4,675.2			4,610.4			4,185.5
Treasury Stock		(54.2	)		(54.2	)		(54.2	)
Deferred Compensation		—			(13.8	)		(6.5	)
Total Stockholders’ Equity		7,594.4			7,363.9			7,224.1
Total Liabilities and Stockholders’ Equity	$	52,171.5		$	51,866.8		$	50,832.3

4

UnumProvident Segment Deferred Policy Acquisition Costs

	U.S. Brokerage			Unum Limited			Colonial			Individual Income Protection - Closed Block			Corporate and Other			Consolidated
Balances at December 31, 2003	$	2,142.1		$	138.3		$	488.4		$	282.2		$	0.9		$	3,051.9
Capitalized		346.0			37.7			173.7			—			(0.1	)		557.3
Amortized		(286.3	)		(19.2	)		(131.2	)		—			—			(436.7	)
Impairment		—			—			—			(282.2	)		—			(282.2	)
Foreign Currency and Other		(5.6	)		(1.9	)		—			—			(0.3	)		(7.8	)
Balances at December 31, 2004		2,196.2			154.9			530.9			—			0.5			2,882.5
Capitalized		311.9			34.1			173.4			—			—			519.4
Amortized		(306.9	)		(21.6	)		(134.7	)		—			(0.5	)		(463.7	)
Foreign Currency and Other		—			(24.9	)		—			—			—			(24.9	)
Balances at December 31, 2005		2,201.2			142.5			569.6			—			—			2,913.3
Capitalized		228.2			25.6			139.0			—			—			392.8
Amortized		(230.3	)		(17.0	)		(106.4	)		—			—			(353.7	)
Foreign Currency and Other		—			12.6			—			—			—			12.6
Balances at September 30, 2006	$	2,199.1		$	163.7		$	602.2		$	—		$	—		$	2,965.0

4.1

UnumProvident Segment Balance Sheets - September 30, 2006

	U.S. Brokerage								Unum Limited		Colonial		Individual Income Protection - Closed Block		Corporate and Other			Consolidated
	Group Income Protection		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total U.S. Brokerage
Assets
Investments	$	9,495.8	$	2,307.6	$	4,907.8	$	16,711.2	$	3,156.4	$	1,511.0	$	12,331.5	$	5,849.8		$	39,559.9
Deferred Policy Acquisition Costs		576.6		280.3		1,342.2		2,199.1		163.7		602.2		—		—			2,965.0
Value of Business Acquired		—		—		2.5		2.5		59.9		15.2		—		—			77.6
Goodwill		2.5		—		187.5		190.0		13.5		—		—		70.8			274.3
All Other		1,100.1		125.1		427.1		1,652.3		426.1		182.7		3,299.1		3,734.5			9,294.7
Total Assets	$	11,175.0	$	2,713.0	$	6,867.1	$	20,755.1	$	3,819.6	$	2,311.1	$	15,630.6	$	9,655.1		$	52,171.5
Liabilities
Reserves and Policyholder Benefits	$	8,600.6	$	1,563.9	$	4,393.9	$	14,558.4	$	2,646.4	$	1,354.8	$	12,666.8	$	8,697.9		$	39,924.3
Debt		—		—		—		—		—		—		—		2,561.6			2,561.6
All Other		435.3		101.7		403.7		940.7		261.9		146.8		74.5		667.3			2,091.2
Total Liabilities		9,035.9		1,665.6		4,797.6		15,499.1		2,908.3		1,501.6		12,741.3		11,926.8			44,577.1
Other Allocated Stockholders’ Equity		2,004.6		1,017.8		1,752.8		4,775.2		824.8		774.4		2,614.4		(2,263.4	)		6,725.4
Unrealized Gain/Loss on Securities		134.5		29.6		316.7		480.8		86.5		35.1		274.9		(8.3	)		869.0
Total Allocated Stockholders’ Equity		2,139.1		1,047.4		2,069.5		5,256.0		911.3		809.5		2,889.3		(2,271.7	)		7,594.4
Total Liabilities and Allocated Stockholders’ Equity	$	11,175.0	$	2,713.0	$	6,867.1	$	20,755.1	$	3,819.6	$	2,311.1	$	15,630.6	$	9,655.1		$	52,171.5

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

UnumProvident Segment Balance Sheets - December 31, 2005

	U.S. Brokerage								Unum Limited		Colonial		Individual Income Protection - Closed Block		Corporate and Other			Consolidated
	Group Income Protection		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total U.S. Brokerage
Assets
Investments	$	9,498.2	$	2,342.0	$	4,477.8	$	16,318.0	$	2,789.8	$	1,552.3	$	12,535.3	$	6,161.1		$	39,356.5
Deferred Policy Acquisition Costs		593.8		300.4		1,307.0		2,201.2		142.5		569.6		—		—			2,913.3
Value of Business Acquired		—		—		2.7		2.7		59.8		16.0		—		—			78.5
Goodwill		2.5		—		187.5		190.0		12.4		—		—		70.6			273.0
All Other		843.6		211.3		419.3		1,474.2		330.8		93.7		3,256.8		4,090.0			9,245.5
Total Assets	$	10,938.1	$	2,853.7	$	6,394.3	$	20,186.1	$	3,335.3	$	2,231.6	$	15,792.1	$	10,321.7		$	51,866.8
Liabilities
Reserves and Policyholder Benefits	$	8,298.7	$	1,624.3	$	3,930.5	$	13,853.5	$	2,343.0	$	1,288.0	$	12,631.8	$	8,705.9		$	38,822.2
Debt		—		—		—		—		—		—		—		3,261.6			3,261.6
All Other		437.3		118.7		448.8		1,004.8		253.2		138.6		171.1		851.4			2,419.1
Total Liabilities		8,736.0		1,743.0		4,379.3		14,858.3		2,596.2		1,426.6		12,802.9		12,818.9			44,502.9
Other Allocated Stockholders’ Equity		2,018.9		1,065.3		1,608.3		4,692.5		650.7		753.6		2,540.0		(2,586.9	)		6,049.9
Unrealized Gain/Loss on Securities		183.2		45.4		406.7		635.3		88.4		51.4		449.2		89.7			1,314.0
Total Allocated Stockholders’ Equity		2,202.1		1,110.7		2,015.0		5,327.8		739.1		805.0		2,989.2		(2,497.2	)		7,363.9
Total Liabilities and Allocated Stockholders’ Equity	$	10,938.1	$	2,853.7	$	6,394.3	$	20,186.1	$	3,335.3	$	2,231.6	$	15,792.1	$	10,321.7		$	51,866.8

4.3

UnumProvident Financial Results by Segment

	Three Months Ended							Nine Months Ended
	9/30/2006		9/30/2005			% Change		9/30/2006		9/30/2005		% Change
Premium Income
U.S. Brokerage	$	1,278.6	$	1,293.5		(1.2	)%	$	3,894.0	$	3,920.0	(0.7	)%
Unum Limited		219.7		204.0		7.7			611.8		587.1	4.2
Colonial		212.8		197.4		7.8			624.9		586.5	6.5
Individual Income Protection - Closed Block		257.8		257.6		0.1			793.0		732.4	8.3
Other		0.1		(0.3	)	(133.3	)		2.5		1.2	108.3
		1,969.0		1,952.2		0.9			5,926.2		5,827.2	1.7
Net Investment Income
U.S. Brokerage		261.9		248.4		5.4			778.5		742.8	4.8
Unum Limited		45.8		39.2		16.8			123.7		116.5	6.2
Colonial		23.6		23.4		0.9			69.6		71.7	(2.9	)
Individual Income Protection - Closed Block		207.0		192.9		7.3			623.2		562.5	10.8
Other		28.0		29.5		(5.1	)		85.1		91.4	(6.9	)
Corporate		12.5		13.8		(9.4	)		39.1		38.5	1.6
		578.8		547.2		5.8			1,719.2		1,623.4	5.9
Other Income
U.S. Brokerage		27.3		27.8		(1.8	)		80.8		80.0	1.0
Unum Limited		—		5.7		(100.0	)		—		6.1	(100.0	)
Colonial		0.2		1.3		(84.6	)		0.9		3.5	(74.3	)
Individual Income Protection - Closed Block		25.5		25.7		(0.8	)		75.7		70.2	7.8
Other		53.9		52.3		3.1			162.7		158.8	2.5
Corporate		3.5		3.1		12.9			9.9		12.4	(20.2	)
		110.4		115.9		(4.7	)		330.0		331.0	(0.3	)
Total Operating Revenue
U.S. Brokerage		1,567.8		1,569.7		(0.1	)		4,753.3		4,742.8	0.2
Unum Limited		265.5		248.9		6.7			735.5		709.7	3.6
Colonial		236.6		222.1		6.5			695.4		661.7	5.1
Individual Income Protection - Closed Block		490.3		476.2		3.0			1,491.9		1,365.1	9.3
Other		82.0		81.5		0.6			250.3		251.4	(0.4	)
Corporate		16.0		16.9		(5.3	)		49.0		50.9	(3.7	)
		2,658.2		2,615.3		1.6			7,975.4		7,781.6	2.5

5

UnumProvident Financial Results by Segment

	Three Months Ended								Nine Months Ended
	9/30/2006			9/30/2005			% Change		9/30/2006			9/30/2005			% Change
Benefits and Expenses
U.S. Brokerage	$	1,741.0		$	1,497.8		16.2	%	$	4,793.5		$	4,459.0		7.5	%
Unum Limited		200.0			199.1		0.5			559.5			571.3		(2.1	)
Colonial		184.5			180.1		2.4			547.2			532.3		2.8
Individual Income Protection - Closed Block		495.6			480.8		3.1			1,449.3			1,318.9		9.9
Other		71.4			67.9		5.2			222.8			214.6		3.8
Corporate		65.1			49.9		(30.5	)		195.3			160.7		21.5
		2,757.6			2,475.6		11.4			7,767.6			7,256.8		7.0
Income (Loss) Before Income Taxes and Net Realized Investment Gain (Loss)
U.S. Brokerage		(173.2	)		71.9		N.M.			(40.2	)		283.8		(114.2	)
Unum Limited		65.5			49.8		31.5			176.0			138.4		27.2
Colonial		52.1			42.0		24.0			148.2			129.4		14.5
Individual Income Protection - Closed Block		(5.3	)		(4.6	)	(15.2	)		42.6			46.2		(7.8	)
Other		10.6			13.6		(22.1	)		27.5			36.8		(25.3	)
Corporate		(49.1	)		(33.0	)	(48.8	)		(146.3	)		(109.8	)	(33.2	)
		(99.4	)		139.7		(171.2	)		207.8			524.8		(60.4	)
Income Taxes (Benefit)		(32.6	)		40.8		(179.9	)		73.9			142.9		(48.3	)
Income (Loss) Before Net Realized Investment
Gain (Loss)		(66.8	)		98.9		(167.5	)		133.9			381.9		(64.9	)
Net Realized Investment Gain (Loss)		4.8			(71.4	)	106.7			1.5			(9.1	)	116.5
Tax Expense (Benefit) on Net Realized
Investment Gain (Loss)		1.7			(25.1	)	106.8			0.5			(3.3	)	115.2
Net Income (Loss)	$	(63.7	)	$	52.6		(221.1	)	$	134.9		$	376.1		(64.1	)

5.1

UnumProvident Quarterly Historical Financial Results by Segment

	9/30/06		6/30/06			3/31/06		12/31/05			9/30/05			6/30/05			3/31/05		12/31/04		9/30/04
Premium Income
U.S. Brokerage	$	1,278.6	$	1,311.6		$	1,303.8	$	1,309.0		$	1,293.5		$	1,317.3		$	1,309.2	$	1,349.3	$	1,348.4
Unum Limited		219.7		200.7			191.4		198.2			204.0			193.1			190.0		177.0		170.1
Colonial		212.8		209.5			202.6		200.5			197.4			195.6			193.5		189.5		186.4
Individual Income Protection - Closed Block		257.8		264.2			271.0		279.3			257.6			232.8			242.0		239.3		246.8
Other		0.1		1.2			1.2		1.4			(0.3	)		1.2			0.3		9.2		10.6
		1,969.0		1,987.2			1,970.0		1,988.4			1,952.2			1,940.0			1,935.0		1,964.3		1,962.3
Net Investment Income
U.S. Brokerage		261.9		258.9			257.7		255.4			248.4			250.4			244.0		260.9		237.1
Unum Limited		45.8		39.9			38.0		37.7			39.2			39.6			37.7		37.4		35.3
Colonial		23.6		23.4			22.6		24.3			23.4			23.3			25.0		24.5		23.5
Individual Income Protection - Closed Block		207.0		214.0			202.2		207.5			192.9			189.7			179.9		203.6		192.6
Other		28.0		28.4			28.7		29.1			29.5			32.8			29.1		31.0		32.1
Corporate		12.5		12.0			14.6		10.9			13.8			12.4			12.3		7.1		6.6
		578.8		576.6			563.8		564.9			547.2			548.2			528.0		564.5		527.2
Other Income
U.S. Brokerage		27.3		28.1			25.4		28.6			27.8			25.2			27.0		23.2		22.8
Unum Limited		—		(0.1	)		0.1		—			5.7			(0.1	)		0.5		0.5		0.5
Colonial		0.2		0.4			0.3		0.9			1.3			1.0			1.2		0.6		0.7
Individual Income Protection - Closed Block		25.5		23.9			26.3		25.0			25.7			19.8			24.7		31.2		21.1
Other		53.9		54.7			54.1		55.1			52.3			52.9			53.6		47.2		52.4
Corporate		3.5		3.0			3.4		(0.6	)		3.1			4.2			5.1		19.3		3.8
		110.4		110.0			109.6		109.0			115.9			103.0			112.1		122.0		101.3
Total Operating Revenue
U.S. Brokerage		1,567.8		1,598.6			1,586.9		1,593.0			1,569.7			1,592.9			1,580.2		1,633.4		1,608.3
Unum Limited		265.5		240.5			229.5		235.9			248.9			232.6			228.2		214.9		205.9
Colonial		236.6		233.3			225.5		225.7			222.1			219.9			219.7		214.6		210.6
Individual Income Protection - Closed Block		490.3		502.1			499.5		511.8			476.2			442.3			446.6		474.1		460.5
Other		82.0		84.3			84.0		85.6			81.5			86.9			83.0		87.4		95.1
Corporate		16.0		15.0			18.0		10.3			16.9			16.6			17.4		26.4		10.4
		2,658.2		2,673.8			2,643.4		2,662.3			2,615.3			2,591.2			2,575.1		2,650.8		2,590.8

6

UnumProvident Quarterly Historical Financial Results by Segment

	9/30/06			6/30/06			3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			12/31/04			9/30/04
Benefits and Expenses
U.S. Brokerage	$	1,741.0		$	1,494.1		$	1,558.4		$	1,489.1		$	1,497.8		$	1,481.5		$	1,479.7		$	1,617.7		$	1,494.8
Unum Limited		200.0			184.4			175.1			186.6			199.1			191.3			180.9			168.2			167.8
Colonial		184.5			183.4			179.3			187.0			180.1			176.3			175.9			174.6			171.0
Individual Income Protection - Closed Block		495.6			468.9			484.8			478.1			480.8			414.6			423.5			436.3			427.3
Other		71.4			75.6			75.8			76.7			67.9			73.0			73.7			79.1			83.4
Corporate		65.1			68.7			61.5			53.3			49.9			54.2			56.6			57.9			55.2
		2,757.6			2,475.1			2,534.9			2,470.8			2,475.6			2,390.9			2,390.3			2,533.8			2,399.5
Income (Loss) Before Income Taxes and Net Realized Investment Gain (Loss)
U.S. Brokerage		(173.2	)		104.5			28.5			103.9			71.9			111.4			100.5			15.7			113.5
Unum Limited		65.5			56.1			54.4			49.3			49.8			41.3			47.3			46.7			38.1
Colonial		52.1			49.9			46.2			38.7			42.0			43.6			43.8			40.0			39.6
Individual Income Protection - Closed Block		(5.3	)		33.2			14.7			33.7			(4.6	)		27.7			23.1			37.8			33.2
Other		10.6			8.7			8.2			8.9			13.6			13.9			9.3			8.3			11.7
Corporate		(49.1	)		(53.7	)		(43.5	)		(43.0	)		(33.0	)		(37.6	)		(39.2	)		(31.5	)		(44.8	)
		(99.4	)		198.7			108.5			191.5			139.7			200.3			184.8			117.0			191.3
Income Taxes (Benefit)		(32.6	)		69.9			36.6			55.5			40.8			71.6			30.5			(0.7	)		65.5
Income (Loss) Before Net Realized Investment Gain (Loss)		(66.8	)		128.8			71.9			136.0			98.9			128.7			154.3			117.7			125.8
Net Realized Investment Gain (Loss)		4.8			(5.8	)		2.5			2.4			(71.4	)		65.5			(3.2	)		25.8			64.5
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)		1.7			(2.2	)		1.0			0.9			(25.1	)		22.9			(1.1	)		9.0			22.7
Net Income (Loss)	$	(63.7	)	$	125.2		$	73.4		$	137.5		$	52.6		$	171.3		$	152.2		$	134.5		$	167.6
Per Common Share - Assuming Dilution
Net Income (Loss)	$	(0.19	)	$	0.38		$	0.23		$	0.43		$	0.17		$	0.55		$	0.49		$	0.45		$	0.55

Note: See “Notes to Statistical Supplement” on page 16 for additional information.

6.1

UnumProvident Financial Results for U.S. Brokerage Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Premium Income	$	1,278.6		$	1,293.5		$	3,894.0		$	3,920.0		$	5,229.0		$	5,421.6		$	5,382.4
Net Investment Income		261.9			248.4			778.5			742.8			998.2			965.8			974.0
Other Income		27.3			27.8			80.8			80.0			108.6			89.8			70.6
Total Operating Revenue		1,567.8			1,569.7			4,753.3			4,742.8			6,335.8			6,477.2			6,427.0
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		1,359.4			1,114.3			3,644.6			3,313.6			4,419.3			4,614.4			5,437.5
Commissions		121.4			115.2			380.0			385.8			501.6			538.3			548.8
Deferral of Policy Acquisition Costs		(71.8	)		(69.7	)		(228.2	)		(244.2	)		(311.9	)		(346.0	)		(458.8	)
Amortization of Deferred Policy Acquisition Costs		73.4			75.7			230.3			233.2			306.9			286.3			282.0
Amortization of Value of Business Acquired		0.1			0.1			0.2			0.2			0.3			0.2			0.3
Operating Expenses		258.5			262.2			766.6			770.4			1,031.9			1,048.5			1,048.4
Total Benefits and Expenses		1,741.0			1,497.8			4,793.5			4,459.0			5,948.1			6,141.7			6,858.2
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses	$	(173.2	)	$	71.9		$	(40.2	)	$	283.8		$	387.7		$	335.5		$	(431.2	)
Operating Ratios
Benefit Ratio		106.3	%		86.1	%		93.6	%		84.5	%		84.5	%		85.1	%		101.0	%
Operating Expense Ratio		20.2	%		20.3	%		19.7	%		19.7	%		19.7	%		19.3	%		19.5	%
Before-tax Profit (Loss) Margin		(13.5	)%		5.6	%		(1.0	)%		7.2	%		7.4	%		6.2	%		(8.0	)%
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	(173.2	)	$	71.9		$	(40.2	)	$	283.8		$	387.7		$	335.5		$	(431.2	)
Settlement Agreements Claim Reassessment - Reserve Charge		(276.4	)		—			(349.2	)		—			—			—			—
Settlement Agreements Claim Reassessment - Operating Expense Charge		(15.0	)		—			(15.0	)		—			—			—			—
California Settlement Agreement and Related Matters - Reserve Charge		—			(29.6	)		—			(29.6	)		(29.6	)		—			—
California Settlement Agreement and Related Matters - Operating Expense Charge		—			(11.1	)		—			(11.1	)		(11.1	)		—			—
Multistate Market Conduct Examination Settlement Agreements - Reserve Charge		—			—			—			—			—			(80.8	)		—
Multistate Market Conduct Examination Settlement Agreements - Operating Expense Charge		—			—			—			—			—			(37.6	)		—
Reserve Strengthening		—			—			—			—			—			—			(894.0	)
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	118.2		$	112.6		$	324.0		$	324.5		$	428.4		$	453.9		$	462.8
Operating Ratios, as Adjusted
Benefit Ratio		84.7	%		83.9	%		84.6	%		83.8	%		83.9	%		83.6	%		84.4	%
Operating Expense Ratio		19.0	%		19.4	%		19.3	%		19.4	%		19.5	%		18.6	%		19.5	%
Before-tax Profit Margin		9.2	%		8.7	%		8.3	%		8.3	%		8.2	%		8.4	%		8.6	%

See “Notes to Statistical Supplement” on page 16 for additional information.

7

UnumProvident Financial Results for U.S. Brokerage Group Income Protection

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Premium Income
Group Long-term Income Protection	$	484.4		$	486.0		$	1,459.5		$	1,468.4		$	1,961.6		$	2,028.6		$	2,031.7
Group Short-term Income Protection		131.3			140.0			398.9			429.8			566.3			616.1			630.9
Total Premium Income		615.7			626.0			1,858.4			1,898.2			2,527.9			2,644.7			2,662.6
Net Investment Income		149.6			151.9			453.5			453.4			605.7			595.8			609.7
Other Income		20.7			20.2			61.7			59.0			80.3			69.6			56.4
Total Operating Revenue		786.0			798.1			2,373.6			2,410.6			3,213.9			3,310.1			3,328.7
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		858.4			606.0			2,114.9			1,806.6			2,397.7			2,533.1			3,412.1
Commissions		42.1			39.0			132.8			135.0			175.1			199.0			200.1
Deferral of Policy Acquisition Costs		(15.4	)		(13.1	)		(48.4	)		(51.8	)		(64.6	)		(77.1	)		(125.1	)
Amortization of Deferred Policy Acquisition Costs		21.8			22.6			65.6			68.7			92.2			93.5			96.1
Operating Expenses		154.1			149.8			444.9			434.7			582.5			619.6			615.5
Total Benefits and Expenses		1,061.0			804.3			2,709.8			2,393.2			3,182.9			3,368.1			4,198.7
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses	$	(275.0	)	$	(6.2	)	$	(336.2	)	$	17.4		$	31.0		$	(58.0	)	$	(870.0	)
Operating Ratios
Benefit Ratio		139.4	%		96.8	%		113.8	%		95.2	%		94.8	%		95.8	%		128.1	%
Operating Expense Ratio		25.0	%		23.9	%		23.9	%		22.9	%		23.0	%		23.4	%		23.1	%
Before-tax Profit (Loss) Margin		(44.7	)%		(1.0	)%		(18.1	)%		0.9	%		1.2	%		(2.2	)%		(32.7	)%
Persistency - Group Long-term Income Protection								87.5	%		84.4	%		84.8	%		84.8	%		87.2	%
Persistency - Group Short-term Income Protection								85.3	%		79.3	%		79.6	%		80.6	%		84.5	%

7.1

UnumProvident Financial Results for U.S. Brokerage Group Income Protection - Continued

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	(275.0	)	$	(6.2	)	$	(336.2	)	$	17.4		$	31.0		$	(58.0	)	$	(870.0	)
Settlement Agreements Claim Reassessment - Reserve Charge		(276.4	)		—			(349.2	)		—			—			—			—
Settlement Agreements Claim Reassessment - Operating Expense Charge		(15.0	)		—			(15.0	)		—			—			—			—
California Settlement Agreement and Related Matters - Reserve Charge		—			(27.3	)		—			(27.3	)		(27.3	)		—			—
California Settlement Agreement and Related Matters - Operating Expense Charge		—			(10.1	)		—			(10.1	)		(10.1	)		—			—
Multistate Market Conduct Examination Settlement Agreements - Reserve Charge		—			—			—			—			—			(80.2	)		—
Multistate Market Conduct Examination Settlement Agreements - Operating Expense Charge		—			—			—			—			—			(36.5	)		—
Reserve Strengthening		—			—			—			—			—			—			(894.0	)
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	16.4		$	31.2		$	28.0		$	54.8		$	68.4		$	58.7		$	24.0
Operating Ratios, as Adjusted
Benefit Ratio		94.5	%		92.4	%		95.0	%		93.7	%		93.8	%		92.7	%		94.6	%
Operating Expense Ratio		22.6	%		22.3	%		23.1	%		22.4	%		22.6	%		22.0	%		23.1	%
Before-tax Profit Margin		2.7	%		5.0	%		1.5	%		2.9	%		2.7	%		2.2	%		0.9	%

See “Notes to Statistical Supplement” on page 16 for additional information.

7.2

UnumProvident Financial Results for U.S. Brokerage Group Life and Accidental Death and Dismemberment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Premium Income
Group Life	$	294.5		$	318.3		$	937.1		$	980.5		$	1,306.8		$	1,441.0		$	1,463.8
Accidental Death & Dismemberment		36.1			37.6			113.8			116.6			156.4			182.4			198.6
Total Premium Income		330.6			355.9			1,050.9			1,097.1			1,463.2			1,623.4			1,662.4
Net Investment Income		35.4			36.2			105.7			114.2			151.9			147.9			145.0
Other Income (Loss)		0.1			1.4			—			1.7			2.0			(0.6	)		0.5
Total Operating Revenue		366.1			393.5			1,156.6			1,213.0			1,617.1			1,770.7			1,807.9
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		251.6			272.6			802.4			832.1			1,111.9			1,244.3			1,280.0
Commissions		21.0			20.7			67.1			76.9			97.8			106.2			113.2
Deferral of Policy Acquisition Costs		(9.0	)		(7.1	)		(28.7	)		(36.6	)		(42.7	)		(47.0	)		(80.0	)
Amortization of Deferred Policy Acquisition Costs		16.1			18.5			48.8			54.9			73.0			67.0			71.9
Operating Expenses		43.4			46.9			135.3			140.4			188.3			186.8			200.1
Total Benefits and Expenses		323.1			351.6			1,024.9			1,067.7			1,428.3			1,557.3			1,585.2
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	43.0		$	41.9		$	131.7		$	145.3		$	188.8		$	213.4		$	222.7
Operating Ratios
Benefit Ratio		76.1	%		76.6	%		76.4	%		75.8	%		76.0	%		76.6	%		77.0	%
Operating Expense Ratio		13.1	%		13.2	%		12.9	%		12.8	%		12.9	%		11.5	%		12.0	%
Before-tax Profit Margin		13.0	%		11.8	%		12.5	%		13.2	%		12.9	%		13.1	%		13.4	%
Persistency - Group Life								80.3	%		77.3	%		78.3	%		84.0	%		83.2	%
Persistency - Accidental Death & Dismemberment								82.5	%		76.3	%		76.9	%		80.3	%		84.2	%

7.3

UnumProvident Financial Results for U.S. Brokerage Supplemental and Voluntary

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Premium Income
Individual Income Protection - Recently Issued	$	111.2		$	106.8		$	332.6		$	321.5		$	425.1		$	415.6		$	392.8
Long-term Care		124.1			119.1			365.9			351.0			473.2			444.5			404.6
Voluntary Workplace Benefits		97.0			85.7			286.2			252.2			339.6			293.4			260.0
Total Premium Income		332.3			311.6			984.7			924.7			1,237.9			1,153.5			1,057.4
Net Investment Income		76.9			60.3			219.3			175.2			240.6			222.1			219.3
Other Income		6.5			6.2			19.1			19.3			26.3			20.8			13.7
Total Operating Revenue		415.7			378.1			1,223.1			1,119.2			1,504.8			1,396.4			1,290.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		249.4			235.7			727.3			674.9			909.7			837.0			745.4
Commissions		58.3			55.5			180.1			173.9			228.7			233.1			235.5
Deferral of Policy Acquisition Costs		(47.4	)		(49.5	)		(151.1	)		(155.8	)		(204.6	)		(221.9	)		(253.7	)
Amortization of Deferred Policy Acquisition Costs		35.5			34.6			115.9			109.6			141.7			125.8			114.0
Amortization of Value of Business Acquired		0.1			0.1			0.2			0.2			0.3			0.2			0.3
Operating Expenses		61.0			65.5			186.4			195.3			261.1			242.1			232.8
Total Benefits and Expenses		356.9			341.9			1,058.8			998.1			1,336.9			1,216.3			1,074.3
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	58.8		$	36.2		$	164.3		$	121.1		$	167.9		$	180.1		$	216.1
Operating Ratios
Benefit Ratios
Individual Income Protection - Recently Issued		57.6	%		60.2	%		56.9	%		57.3	%		57.5	%		57.7	%		54.6	%
Long-term Care		101.4	%		95.3	%		98.4	%		92.3	%		93.0	%		88.8	%		84.7	%
Voluntary Workplace Benefits		61.4	%		67.6	%		62.2	%		66.1	%		66.3	%		69.0	%		72.5	%
Operating Expense Ratio		18.4	%		21.0	%		18.9	%		21.1	%		21.1	%		21.0	%		22.0	%
Before-tax Profit Margin		17.7	%		11.6	%		16.7	%		13.1	%		13.6	%		15.6	%		20.4	%
Interest Adjusted Loss Ratio
Individual Income Protection - Recently Issued		43.1	%		47.0	%		42.8	%		44.5	%		44.4	%		46.1	%		41.5	%

7.4

UnumProvident Financial Results for U.S. Brokerage Supplemental and Voluntary - Continued

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Persistency - Individual Income Protection - Recently Issued								90.4	%		89.4	%		89.6	%		90.7	%		89.6	%
Persistency - Long-term Care								95.4	%		95.6	%		95.8	%		95.5	%		95.0	%
Persistency - Voluntary Workplace Benefits								81.1	%		80.7	%		81.1	%		81.0	%		82.1	%
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	58.8		$	36.2		$	164.3		$	121.1		$	167.9		$	180.1		$	216.1
California Settlement Agreement and Related Matters - Reserve Charge		—			(2.3	)		—			(2.3	)		(2.3	)		—			—
California Settlement Agreement and Related Matters - Operating Expense Charge		—			(1.0	)		—			(1.0	)		(1.0	)		—			—
Multistate Market Conduct Examination Settlement Agreements - Reserve Charge		—			—			—			—			—			(0.6	)		—
Multistate Market Conduct Examination Settlement Agreements - Operating Expense Charge		—			—			—			—			—			(1.1	)		—
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	58.8		$	39.5		$	164.3		$	124.4		$	171.2		$	181.8		$	216.1
Operating Ratios, as Adjusted
Benefit Ratios
Individual Income Protection - Recently Issued		57.6	%		58.1	%		56.9	%		56.6	%		57.0	%		57.6	%		54.6	%
Long-term Care		101.4	%		95.3	%		98.4	%		92.3	%		93.0	%		88.8	%		84.7	%
Voluntary Workplace Benefits		61.4	%		67.6	%		62.2	%		66.1	%		66.3	%		69.0	%		72.5	%
Operating Expense Ratio		18.4	%		20.7	%		18.9	%		21.0	%		21.0	%		20.9	%		22.0	%
Before-tax Profit Margin		17.7	%		12.7	%		16.7	%		13.5	%		13.8	%		15.8	%		20.4	%
Interest Adjusted Loss Ratio, as Adjusted
Individual Income Protection - Recently Issued		43.1	%		44.8	%		42.8	%		43.8	%		43.8	%		46.0	%		41.5	%

See “Notes to Statistical Supplement” on page 16 for additional information.

7.5

UnumProvident Financial Results for Unum Limited Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Premium Income
Group Long-term Income Protection	$	169.5		$	152.4		$	467.2		$	433.4		$	582.9		$	501.8		$	371.2
Group Life		41.9			43.9			120.6			123.0			164.1			117.9			60.8
Individual Income Protection		8.3			7.7			24.0			30.7			38.3			39.4			45.0
Total Premium Income		219.7			204.0			611.8			587.1			785.3			659.1			477.0
Net Investment Income		45.8			39.2			123.7			116.5			154.2			139.6			106.5
Other Income		—			5.7			—			6.1			6.1			3.1			9.9
Total Operating Revenue		265.5			248.9			735.5			709.7			945.6			801.8			593.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		147.6			146.1			414.5			415.9			545.8			464.5			344.5
Commissions		13.8			14.5			36.9			41.0			56.4			48.9			34.1
Deferral of Policy Acquisition Costs		(8.4	)		(8.0	)		(25.6	)		(26.8	)		(34.1	)		(37.7	)		(33.6	)
Amortization of Deferred Policy Acquisition Costs		6.0			5.2			17.0			16.0			21.6			19.2			17.0
Amortization of Value of Business Acquired		1.7			3.5			5.0			10.8			14.2			14.4			5.4
Operating Expenses		39.3			37.8			111.7			114.4			154.0			141.2			114.0
Total Benefits and Expenses		200.0			199.1			559.5			571.3			757.9			650.5			481.4
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	65.5		$	49.8		$	176.0		$	138.4		$	187.7		$	151.3		$	112.0
Operating Ratios
Benefit Ratio		67.2	%		71.6	%		67.8	%		70.8	%		69.5	%		70.5	%		72.2	%
Operating Expense Ratio		17.9	%		18.5	%		18.3	%		19.5	%		19.6	%		21.4	%		23.9	%
Before-tax Profit Margin		29.8	%		24.4	%		28.8	%		23.6	%		23.9	%		23.0	%		23.5	%
Persistency - Group Long-term Income Protection								90.4	%		94.7	%		94.2	%		92.1	%		92.9	%
Persistency - Group Life								69.0	%		90.0	%		86.3	%		83.0	%		87.7	%
Persistency - Individual Income Protection								88.1	%		94.3	%		88.4	%		86.7	%		87.2	%
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	65.5		$	49.8		$	176.0		$	138.4		$	187.7		$	151.3		$	112.0
Gain on Sale of Netherlands Branch		—			5.7			—			5.7			5.7			—			—
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	65.5		$	44.1		$	176.0		$	132.7		$	182.0		$	151.3		$	112.0
Operating Ratio, as Adjusted
Before-tax Profit Margin		29.8	%		21.6	%		28.8	%		22.6	%		23.2	%		23.0	%		23.5	%

See “Notes to Statistical Supplement” on page 16 for additional information.

8

UnumProvident Financial Results for Colonial Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Premium Income
Income Protection	$	134.3		$	127.7		$	396.9		$	379.8		$	508.9		$	486.2		$	464.9
Life		33.2			28.5			95.7			84.8			114.0			106.9			96.7
Cancer and Critical Illness		45.3			41.2			132.3			121.9			164.1			147.9			131.9
Total Premium Income		212.8			197.4			624.9			586.5			787.0			741.0			693.5
Net Investment Income		23.6			23.4			69.6			71.7			96.0			94.5			90.0
Other Income		0.2			1.3			0.9			3.5			4.4			2.3			2.5
Total Operating Revenue		236.6			222.1			695.4			661.7			887.4			837.8			786.0
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		112.0			110.4			327.9			319.7			433.2			408.3			395.4
Commissions		45.0			42.8			137.8			127.7			170.7			173.9			164.9
Deferral of Policy Acquisition Costs		(47.3	)		(41.9	)		(139.0	)		(131.1	)		(173.4	)		(173.7	)		(166.1	)
Amortization of Deferred Policy Acquisition Costs		36.5			31.8			106.4			100.2			134.7			131.2			118.3
Amortization of Value of Business Acquired		0.3			0.3			0.8			0.9			0.6			1.2			(0.9	)
Operating Expenses		38.0			36.7			113.3			114.9			153.5			141.3			127.7
Total Benefits and Expenses		184.5			180.1			547.2			532.3			719.3			682.2			639.3
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	52.1		$	42.0		$	148.2		$	129.4		$	168.1		$	155.6		$	146.7
Operating Ratios
Benefit Ratio		52.6	%		55.9	%		52.5	%		54.5	%		55.0	%		55.1	%		57.0	%
Operating Expense Ratio		17.9	%		18.6	%		18.1	%		19.6	%		19.5	%		19.1	%		18.4	%
Before-tax Profit Margin		24.5	%		21.3	%		23.7	%		22.1	%		21.4	%		21.0	%		21.2	%
Persistency - Income Protection								75.0	%		75.2	%		75.3	%		75.6	%		72.0	%
Persistency - Life								85.0	%		84.1	%		84.1	%		84.1	%		87.2	%
Persistency - Cancer and Critical Illness								82.5	%		82.9	%		83.2	%		82.6	%		82.0	%

9

UnumProvident Financial Results for Individual Income Protection - Closed Block Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Premium Income	$	257.8		$	257.6		$	793.0		$	732.4		$	1,011.7		$	986.6		$	1,028.5
Net Investment Income		207.0			192.9			623.2			562.5			770.0			799.1			824.2
Other Income		25.5			25.7			75.7			70.2			95.2			100.3			95.9
Total Operating Revenue		490.3			476.2			1,491.9			1,365.1			1,876.9			1,886.0			1,948.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		442.6			414.6			1,288.0			1,142.3			1,562.7			1,618.9			1,533.6
Commissions		18.3			19.0			57.7			54.6			74.9			76.3			85.5
Deferral of Policy Acquisition Costs		—			—			—			—			—			—			(7.5	)
Amortization of Deferred Policy Acquisition Costs		—			—			—			—			—			—			41.3
Amortization of Value of Business Acquired		—			—			—			—			—			—			32.7
Intangible Assets Write-down		—			—			—			—			—			856.4			—
Operating Expenses		34.7			47.2			103.6			122.0			159.4			157.2			200.5
Total Benefits and Expenses		495.6			480.8			1,449.3			1,318.9			1,797.0			2,708.8			1,886.1
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses	$	(5.3	)	$	(4.6	)	$	42.6		$	46.2		$	79.9		$	(822.8	)	$	62.5
Operating Ratios
Interest Adjusted Loss Ratio		106.2	%		93.2	%		98.5	%		89.4	%		89.3	%		93.4	%		82.7	%
Persistency								94.3	%		94.5	%		94.5	%		94.5	%		94.2	%

10

UnumProvident Financial Results for Individual Income Protection - Closed Block Segment - Continued

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	(5.3	)	$	(4.6	)	$	42.6		$	46.2		$	79.9		$	(822.8	)	$	62.5
Settlement Agreements Claim Reassessment - Reserve Charge		(34.0	)		—			(47.2	)		—			—			—			—
California Settlement Agreement and Related Matters - Reserve Charge		—			(23.1	)		—			(23.1	)		(23.1	)		—			—
California Settlement Agreement and Related Matters - Operating Expense Charge		—			(11.2	)		—			(11.2	)		(11.2	)		—			—
Multistate Market Conduct Examination Settlement Agreements - Reserve Charge		—			—			—			—			—			(3.7	)		—
Multistate Market Conduct Examination Settlement Agreements - Operating Expense Charge		—			—			—			—			—			(4.9	)		—
Individual Income Protection - Closed Block Restructuring - Reserve Charge		—			—			—			—			—			(110.6	)		—
Individual Income Protection - Closed Block Restructuring - Intangible Asset Impairment Charge		—			—			—			—			—			(856.4	)		—
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	28.7		$	29.7		$	89.8		$	80.5		$	114.2		$	152.8		$	62.5
Interest Adjusted Loss Ratio, as Adjusted		93.0	%		84.9	%		92.5	%		86.4	%		87.3	%		87.5	%		82.7	%

See “Notes to Statistical Supplement” on page 16 for additional information.

10.1

UnumProvident Financial Results for Other Segment

	Three Months Ended					Nine Months Ended				Year Ended
	9/30/2006		9/30/2005			9/30/2006		9/30/2005		12/31/2005		12/31/2004		12/31/2003
Operating Revenue
Premium Income	$	0.1	$	(0.3	)	$	2.5	$	1.2	$	2.6	$	31.3	$	34.3
Net Investment Income		28.0		29.5			85.1		91.4		120.5		127.3		140.1
Other Income		53.9		52.3			162.7		158.8		213.9		208.3		204.4
Total Operating Revenue		82.0		81.5			250.3		251.4		337.0		366.9		378.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		27.3		26.7			89.3		89.1		122.2		142.3		157.1
Commissions		0.4		—			1.1		0.3		1.1		4.9		10.8
Deferral of Policy Acquisition Costs		—		0.1			—		—		—		0.1		0.1
Amortization of Deferred Policy Acquisition Costs		—		(0.2	)		—		—		0.5		—		—
Operating Expenses		43.7		41.3			132.4		125.2		167.5		174.2		168.7
Total Benefits and Expenses		71.4		67.9			222.8		214.6		291.3		321.5		336.7
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	10.6	$	13.6		$	27.5	$	36.8	$	45.7	$	45.4	$	42.1

11

UnumProvident Financial Results for Corporate Segment

	Three Months Ended						Nine Months Ended						Year Ended
	9/30/2006			9/30/2005			9/30/2006			9/30/2005			12/31/2005			12/31/2004			12/31/2003
Operating Revenue
Net Investment Income	$	12.5		$	13.8		$	39.1		$	38.5		$	49.4		$	32.4		$	23.6
Other Income		3.5			3.1			9.9			12.4			11.8			33.6			8.0
Total Operating Revenue		16.0			16.9			49.0			50.9			61.2			66.0			31.6
Benefits and Expenses
Interest and Debt Expense		44.2			49.8			146.0			155.5			208.0			207.1			187.2
Cost Related to Early Retirement of Debt		—			—			23.1			—			—			—			—
Unallocated Operating Expenses		20.9			0.1			26.2			5.2			6.0			12.6			37.9
Total Benefits and Expenses		65.1			49.9			195.3			160.7			214.0			219.7			225.1
Operating Loss Before Income Taxes and Net Realized Investment Gains and Losses	$	(49.1	)	$	(33.0	)	$	(146.3	)	$	(109.8	)	$	(152.8	)	$	(153.7	)	$	(193.5	)
Operating Loss Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	(49.1	)	$	(33.0	)	$	(146.3	)	$	(109.8	)	$	(152.8	)	$	(153.7	)	$	(193.5	)
Broker Compensation Settlement		(18.5	)		—			(18.5	)		—			—			—			—
Cost Related to Early Retirement of Debt		—			—			(23.1	)		—			—			—			—
Operating Loss Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	(30.6	)	$	(33.0	)	$	(104.7	)	$	(109.8	)	$	(152.8	)	$	(153.7	)	$	(193.5	)

See “Notes to Statistical Supplement” on page 16 for additional information.

12

Reserves and Policyholder Benefits

	September 30, 2006						December 31, 2005
	IBNR (1)		All Other		Total		IBNR (1)		All Other		Total
Group Income Protection	$	856.8	$	7,529.1	$	8,385.9	$	698.6	$	7,270.1	$	7,968.7
Group Life and Accidental Death & Dismemberment		206.4		1,357.5		1,563.9		237.6		1,386.7		1,624.3
Individual Income Protection - Recently Issued		78.8		1,135.5		1,214.3		77.8		1,030.9		1,108.7
Long-term Care		31.4		2,265.6		2,297.0		32.1		1,959.0		1,991.1
Voluntary Workplace Benefits		35.0		814.2		849.2		32.3		764.5		796.8
U.S. Brokerage Segment		1,208.4		13,101.9		14,310.3		1,078.4		12,411.2		13,489.6
Unum Limited Segment		266.8		2,426.0		2,692.8		242.9		2,074.9		2,317.8
Colonial Segment		98.6		1,256.2		1,354.8		83.7		1,204.3		1,288.0
Individual Income Protection - Closed Block Segment		463.1		11,692.0		12,155.1		428.9		11,641.3		12,070.2
Other Segment		231.6		8,321.3		8,552.9		239.6		8,295.7		8,535.3
Unrealized Adjustment to Reserves for Future Policy and Contract Benefits		—		858.4		858.4		—		1,121.3		1,121.3
Consolidated	$	2,268.5	$	37,655.8	$	39,924.3	$	2,073.5	$	36,748.7	$	38,822.2

(1) IBNR for income protection includes “reopen reserves.” These two categories of reserves are developed and maintained in aggregate based on historical monitoring that has only been on a combined basis.

The increase in the U.S. Brokerage segment and Individual Income Protection - Closed Block Segment IBNR from December 31, 2005 is due to the reserve charge related to the reassessment of claims under the multistate market conduct examination settlement agreements and California settlement agreement.

The increase in U.S. Brokerage IBNR is offset in part due to a slight decline in insured lives in the group income protection, group life, and accidental death and dismemberment lines of business.

The increase in the U.S. Brokerage All Other reserves from December 31, 2005 is due to growth in the disabled life reserves in the group income protection line of business and growth in the active life reserves for the long-term care and individual income protection - recently issued lines of business.

The increase in All Other reserves from December 31, 2005 for the Unum Limited segment is due primarily to growth in insured lives and fluctuation in the foreign exchange rate.

Because of the increase in interest rates and the corresponding decline in unrealized investment gains in our available-for-sale securities, the unrealized adjustment to reserves to reflect the changes that would be necessary to policyholder liabilities if the unrealized gains and losses related to our available-for-sale securities had been realized decreased All Other reserves approximately $262.9 million during the first nine months of 2006, primarily in U.S. Brokerage group income protection and the Individual Income Protection - Closed Block segment.

13

UnumProvident Investment Fact Sheet at September 30, 2006

	9/30/06
Bonds (Fair Value)
Public	$	21,258.2			61.7	%
Mortgage-backed Securities		4,023.4			11.7
Private Placements		3,773.2			10.9
High Yield		2,019.9			5.9
Government Securities		3,380.3			9.8
Municipal Securities		65.3			0.2
Open Derivatives		(63.9	)		(0.2	)
Total	$	34,456.4			100.0	%
	Book Value			Fair Value
Quality Ratings of Bonds
Aaa		23.6	%		23.2	%
Aa		7.0			7.0
A		26.7			27.0
Baa		36.5			36.9
Below Baa		6.2			5.9
Total		100.0	%		100.0	%
	9/30/06			6/30/06
Selected Statistics
Portfolio Yield*		6.74	%		6.76	%
Average Duration		9.08			9.06
Average Credit Quality		A			A
*  Bond equivalent yield is a book value and duration weighted average of the yield on the fixed income securities in the portfolio.
Schedule BA and Non-Current
Total Non-Current Investments	$	11.1		$	12.0
Total Schedule BA Assets	$	105.6		$	106.1

14

UnumProvident Investment Fact Sheet at September 30, 2006

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	$	2,307.8		$	84.4		$	855.7		$	41.6	$	1,452.1	$	126.0
Canadian		277.6			61.5			—			—		277.6		61.5
Capital Goods		2,573.1			171.4			668.3			26.9		1,904.8		198.3
Communications		2,671.1			131.2			925.4			53.3		1,745.7		184.5
Consumer Cyclical		1,455.0			34.5			510.5			31.7		944.5		66.2
Consumer Non-Cyclical		4,025.6			146.1			1,687.2			66.5		2,338.4		212.6
Derivative Instruments		(63.9	)		(56.8	)		(186.8	)		186.8		122.9		130.0
Energy (Oil & Gas)		2,326.2			257.0			308.7			9.6		2,017.5		266.6
Financial Institutions		3,582.3			47.4			1,650.0			72.3		1,932.3		119.7
Mortgage/Asset Backed		4,023.4			219.4			753.1			17.2		3,270.3		236.6
Sovereigns		854.8			50.7			417.1			5.7		437.7		56.4
Technology		442.1			22.4			131.2			6.5		310.9		28.9
Transportation		1,015.2			108.0			102.1			2.5		913.1		110.5
U.S. Government Agencies		2,621.6			70.0			1,304.3			66.6		1,317.3		136.6
Utilities		6,344.5			327.1			2,182.7			81.6		4,161.8		408.7
Total	$	34,456.4		$	1,674.3		$	11,309.5		$	668.8	$	23,146.9	$	2,343.1

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	$	254.3	$	0.4	$	16.3	$	0.5
91 through 180 days		690.0		5.6		133.5		4.1
181 through 270 days		4,261.2		128.3		117.1		4.1
271 days to 1 year		1,425.1		44.0		41.5		3.2
Greater than 1 year		3,799.1		412.2		571.4		66.4
Total	$	10,429.7	$	590.5	$	879.8	$	78.3

14.1

UnumProvident Statutory Capital and Surplus

	As of September 30, 2006						As of December 31, 2005 Capital and Surplus + AVR
	Capital and Surplus		AVR		Capital and Surplus + AVR
Provident Life and Accident	$	1,272.2	$	65.6	$	1,337.8	$	1,398.6
Unum Life of America		1,247.6		95.0		1,342.6		1,453.5
Paul Revere Life (1)		1,044.6		35.4		1,080.0		1,162.3
Colonial Life & Accident		368.3		11.4		379.7		360.8
Provident Life and Casualty		95.8		1.3		97.1		92.5
First Unum Life		165.8		5.7		171.5		164.1
Paul Revere Variable (1)		119.0		1.1		120.1		115.5

(1) Capital and Surplus of Paul Revere Variable is included in Paul Revere Life

15

UnumProvident Statutory Operating Results - September 30, 2006

	Nine Months Ended
	Net Gain (Loss) from Operations After Tax
	Before Infrequent or Unusual Items		Claim Reassessment Charge			Total			Net Realized Capital Gains (Losses) After Tax and Transfers to IMR			Net Income (Loss)
Provident Life and Accident	$	71.0	$	(11.2	)	$	59.8		$	(12.2	)	$	47.6
Unum Life of America		229.8		(273.8	)		(44.0	)		(29.8	)		(73.8	)
Paul Revere Life		87.2		(11.6	)		75.6			(13.3	)		62.3
Colonial Life & Accident		74.3		—			74.3			0.7			75.0
Provident Life and Casualty		8.7		(1.8	)		6.9			(1.2	)		5.7
First Unum Life		20.6		(19.5	)		1.1			(0.1	)		1.0
Paul Revere Variable		6.0		—			6.0			0.5			6.5
Total	$	497.6	$	(317.9	)	$	179.7		$	(55.4	)	$	124.3
	Three Months Ended
	Net Gain (Loss) from Operations After Tax
	Before Infrequent or Unusual Items		Claim Reassessment Charge			Total			Net Realized Capital Gains (Losses) After Tax and Transfers to IMR			Net Income (Loss)
Provident Life and Accident	$	14.1	$	(9.1	)	$	5.0		$	(0.7	)	$	4.3
Unum Life of America		78.2		(213.5	)		(135.3	)		1.1			(134.2	)
Paul Revere Life		29.7		(8.4	)		21.3			0.6			21.9
Colonial Life & Accident		28.5		—			28.5			(0.1	)		28.4
Provident Life and Casualty		4.9		(1.8	)		3.1			—			3.1
First Unum Life		7.5		(17.4	)		(9.9	)		(0.2	)		(10.1	)
Paul Revere Variable		1.8		—			1.8			0.3			2.1
Total	$	164.7	$	(250.2	)	$	(85.5	)	$	1.0		$	(84.5	)

Note: Statutory results are reported in conformity with statutory accounting principles as prescribed by the National Association of Insurance Commissioners and adopted by the applicable state laws.

15.1

UnumProvident Statutory Operating Results - September 30, 2005

	Nine Months Ended
	Net Gain from Operations After Tax
	Before Infrequent or Unusual Items		Reinsurance Recapture		California Settlement Agreement			Total		Net Realized Capital Gains (Losses) After Tax and Transfers to IMR			Net Income
Provident Life and Accident	$	106.7	$	—	$	(14.3	)	$	92.4	$	8.7		$	101.1
Unum Life of America		113.1		129.7		(27.6	)		215.2		(5.6	)		209.6
Paul Revere Life		103.1		—		(11.8	)		91.3		(10.3	)		81.0
Colonial Life & Accident		67.6		—		—			67.6		4.9			72.5
Provident Life and Casualty		10.1		—		—			10.1		0.2			10.3
First Unum Life		14.8		—		—			14.8		(0.5	)		14.3
Paul Revere Variable		6.5		—		—			6.5		—			6.5
Total	$	421.9	$	129.7	$	(53.7	)	$	497.9	$	(2.6	)	$	495.3
	Three Months Ended
	Net Gain from Operations After Tax
	Before Infrequent or Unusual Items		Reinsurance Recapture		California Settlement Agreement			Total		Net Realized Capital Gains (Losses) After Tax and Transfers to IMR			Net Income
Provident Life and Accident	$	38.2	$	—	$	(14.3	)	$	23.9	$	4.4		$	28.3
Unum Life of America		64.4		129.7		(27.6	)		166.5		(2.4	)		164.1
Paul Revere Life		35.1		—		(11.8	)		23.3		(5.3	)		18.0
Colonial Life & Accident		20.8		—		—			20.8		3.0			23.8
Provident Life and Casualty		4.0		—		—			4.0		(0.3	)		3.7
First Unum Life		4.0		—		—			4.0		(1.1	)		2.9
Paul Revere Variable		2.6		—		—			2.6		—			2.6
Total	$	169.1	$	129.7	$	(53.7	)	$	245.1	$	(1.7	)	$	243.4

Note: Statutory results are reported in conformity with statutory accounting principles as prescribed by the National Association of Insurance Commissioners and adopted by the applicable state laws.

15.2

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

	2006			2005			2004
Reserve Balance from Prior Year End	$	5,192.8		$	5,146.1		$	4,983.5
Reserves Ceded Each January 1 for Prior Year Incurrals		(605.5	)		(453.4	)		(429.0	)
Other Adjustments to Beginning Balance (see Schedule H)		—			(5.7	)		17.6
Reserve Balance January 1 (a)		4,587.3			4,687.0			4,572.1
Paid on Prior Year Claims		(316.4	)		(356.0	)		(362.4	)
Interest Earned on Reserves		76.9			78.7			77.7
Incurred on Prior Year Claims		39.5			49.8			(16.2	)
Reserve Charges Incurred for Settlement Agreements		45.3			—			—
Reserve Balance March 31	$	4,432.6		$	4,459.5		$	4,271.2
Reserve Balance March 31	$	4,432.6		$	4,459.5		$	4,271.2
Paid on Prior Year Claims		(268.8	)		(298.7	)		(291.5	)
Interest Earned on Reserves		73.4			74.6			73.3
Incurred on Prior Year Claims		29.6			1.0			(24.0	)
Reserve Balance June 30	$	4,266.8		$	4,236.4		$	4,029.0
Reserve Balance June 30	$	4,266.8		$	4,236.4		$	4,029.0
Paid on Prior Year Claims		(283.8	)		(261.5	)		(260.7	)
Interest Earned on Reserves		69.8			71.5			69.4
Incurred on Prior Year Claims		(17.1	)		(17.1	)		(32.7	)
Reserve Charges Incurred for Settlement Agreements		246.0			13.7			—
Reserve Balance September 30	$	4,281.7		$	4,043.0		$	3,805.0
Reserve Balance September 30				$	4,043.0		$	3,805.0
Paid on Prior Year Claims					(229.8	)		(223.2	)
Interest Earned on Reserves					68.9			68.9
Incurred on Prior Year Claims					0.3			(31.3	)
Reserve Charges Incurred for Settlement Agreements					—			71.1
Reserve Balance December 31 on Prior Year Claims					3,882.4			3,690.5
Reserve Balance December 31 on Current Year Claims					1,310.4			1,455.6
Reserve Balance December 31 on Total Claims Incurred (b)				$	5,192.8		$	5,146.1

(a) (balances to Schedule H Part 3 Line 3.2 Column 2)

(b) (balances to Schedule H Part 2 Line C.1 Column 2)

15.3

Reconciliation to Unum Life Insurance Company of America - Statutory Basis

Schedule H Part 3 for Group Accident and Health

	2005		2004
Paid on Prior Year Claims - Full Year	$	1,146.0	$	1,137.8
(balances to Schedule H Part 3 Line 1.1 Column 2)
Incurred on Prior Year Claims - Full Year	$	47.7	$	(33.1	)
Interest Earned on Reserves - Full Year		293.7		289.3
Incurred on Prior Year Claims - Full Year, Excluding Interest Earned	$	341.4	$	256.2
(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 income protection, group accidental death & dismemberment, and group voluntary income protection, cancer, and critical illness products reported in our U.S. Brokerage segment as well as the reinsurance pools reported in our Other segment.

15.4

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 (loss). 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.

2006 Significant Transactions and Events

Revised Claim Reassessment Reserve Estimate

Each quarter we review our emerging experience to ensure that the reserves we established for our claim reassessment process are appropriate. This claim reassessment process was implemented as a result of the settlement agreements we entered into with state insurance regulators in the fourth quarter of 2004 and the settlement agreement we entered into with the California Department of Insurance (DOI) in the third quarter of 2005. The fourth quarter of 2004 agreements were entered into on conclusion of a multistate market conduct examination led by Maine, Massachusetts, and Tennessee relating to our disability claims handling practices. The settlement agreement we entered into with the California DOI concluded a market conduct examination and investigation of our disability claims handling practices.

Our quarterly review of our claim reassessment reserve adequacy includes an analysis of our assumptions related to (1) the number of claimants who will ultimately choose to participate in the process, (2) the number of claimants for whom payments will be made and then closed because the claimant is no longer disabled, (3) the number of claimants for whom payments will continue because the claimant remains eligible for disability payments, and (4) the average incurred cost per claimant.

When we performed our analysis at the end of the first quarter of 2006, our analysis was based on data available as of the end of that time period. At that time we believed that the actual results were credible enough to enable us to update our estimate of the ultimate cost related to the reassessment process and the reserves established at the time of the settlement agreements. At the end of the first quarter, we concluded that a change in our initial assumptions was warranted. The change in assumptions was primarily related to the number of claimants for whom payments will continue because the claimant remains eligible for disability payments. We therefore recorded a charge, in the first quarter of 2006, of $86.0 million before tax, or $55.9 million after tax, to reflect our then current best estimate of the ultimate cost of benefits for claims reopened in the reassessment process. The first quarter charge decreased before-tax operating results for our U.S. Brokerage segment group income protection line of business $72.8 million and our Individual Income Protection – Closed Block segment $13.2 million.

(continued on next page) 16

During our third quarter of 2006 review, we concluded that some of our assumptions needed to be modified to reflect emerging experience and that a charge should be recorded. By the end of the third quarter we had either completed the reassessment or had analyzed the pending inventory for approximately 55 percent of the total number of claims expected to be reassessed during the reassessment process. The most recent months’ experience indicated that the assumption used to estimate the number of claimants for whom payments will be made needed to be revised, as did the assumption for the average cost. That is, significantly more claims were qualifying for benefit payment, and the average cost per claimant was slightly higher than previously assumed.

Our third quarter review also indicated that we needed to adjust the amount previously recorded for the incremental direct operating expenses to conduct the reassessment process because of the additional time now estimated to complete the process. Our review indicated that no adjustment was needed for the amount previously recorded for the additional benefit costs and reserves for claims that were already incurred and in inventory that were anticipated to increase as a result of the claim process changes being implemented.

Based on our analysis, in the third quarter of 2006 we recorded an additional charge of $325.4 million before tax, or $211.5 million after tax. The 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 operating expenses to conduct the reassessment process. The third quarter charge decreased before-tax operating results for our U.S. Brokerage segment group income protection line of business $291.4 million and our Individual Income Protection – Closed Block segment $34.0 million.

Broker Compensation Settlement

On October 31, 2006, we reached a settlement agreement on broker compensation with the Office of the New York Attorney General (NYAG) that directly resolves all issues raised by the NYAG in its review of our broker compensation practices. The review was part of a larger investigation of broker compensation practices in the insurance industry. We also resolved litigation filed by the California Insurance Commissioner against our Company and other insurers regarding disclosure practices in broker compensation. We have agreed to eliminate all contingent compensation programs for our group product lines. Additionally, we are expanding our disclosure of broker compensation programs. We had previously taken a number of steps to enhance transparency by establishing, in March 2005, disclosure policies that provided customers with a means of obtaining information about the compensation paid to their brokers. As part of the settlement, we agreed to a fine of $1.9 million, the establishment of a fund of $15.5 million to provide restitution for any customer determined to be harmed by past practices, and certain other expenses approximating $1.1 million.

Financing

In June 2006, pursuant to a cash tender offer, we purchased $50.0 million of our outstanding 7.405% capital 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 and first nine months 2006 income by $17.8 million before tax, or $11.6 million after tax.

Upon settlement of the common stock purchase contract in May 2006, we received proceeds of approximately $575.0 million and issued 43.3 million shares of common stock.

The scheduled remarketing of the senior note element of the adjustable conversion-rate equity security units (units) 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 2006 income by $5.3 million before tax, or $3.4 million after tax.

(continued on next page) 16.1

Accounting Principle Change

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.

2005 Significant Transactions and Events

California Settlement Agreement and Amendment of the Multistate Market Conduct Examination Settlement Agreements

In the third quarter of 2005, certain of our U.S. insurance subsidiaries entered into a settlement agreement with the California DOI, concluding a market conduct examination and investigation of the subsidiaries’ disability claims handling practices. The California DOI had chosen not to join the 2004 multistate settlement agreements. As part of the settlement with the California DOI, we paid a civil penalty of $8.0 million and agreed to change certain practices and policy provisions related to our California business. The settlement also incorporates claims handling practices previously covered by the multistate settlement agreements and includes certain additional claim handling changes.

Based on the settlement agreement and related matters, in the third quarter of 2005 we recorded a charge of $75.0 million before tax, or $51.6 million after tax, comprised of four elements: $14.3 million of incremental direct operating expenses to conduct the reassessment process; $37.3 million for benefit costs and reserves from claims reopened from the reassessment; $15.4 million for additional benefit costs and reserves for claims already incurred and currently in inventory that are anticipated as a result of the claim process changes being implemented; and the $8.0 million civil penalty. The charge decreased before-tax operating results for the U.S. Brokerage segment group income protection line of business and supplemental and voluntary lines of business $37.4 million and $3.3 million, respectively, and the Individual Income Protection – Closed Block segment $34.3 million.

Income Tax

In the third quarter of 2005, we recognized an income tax benefit of approximately $10.8 million related to the finalization of income tax reviews of our U.K. subsidiaries.

During the first quarter of 2005, the Internal Revenue Service completed its examination of tax years 1999 through 2001 and issued its revenue agent’s report (RAR) in April 2005. Income tax liabilities of approximately $32.0 million that related primarily to interest on the timing of expense deductions were released in the first quarter of 2005, all of which was reflected as a reduction to income tax expense.

Disposition

During the third quarter of 2005, our wholly-owned subsidiary, Unum Limited, completed the sale of its Netherlands branch. The gain on the sale was approximately $5.7 million before tax and $4.0 million after tax and is included in operating results for the three and nine month periods ended September 30, 2005.

Financing

During 2005, we repaid $227.0 million of maturing debt. In November 2005, we completed a long-term debt offering, issuing $400.0 million of 6.85% senior notes due November 15, 2015.

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Closed Block Reinsurance Recapture

During the third quarter of 2005, we recaptured a closed block of individual income protection business originally ceded to Centre Life Reinsurance Ltd. in 1996. The recaptured business includes approximately $1.6 billion in invested assets and $185.0 million of annual premium. The effective date of the recapture was August 8, 2005. The underlying operating results of the reinsurance contract, prior to recapture, were reflected in other income. The recapture therefore did not have a material impact on operating income for our Individual Income Protection – Closed Block segment.

2004 Significant Transactions and Events

Settlement of Multistate Market Conduct Examination

During 2004, certain of our U.S. insurance subsidiaries entered into settlement agreements with state insurance regulators upon conclusion of a multistate market conduct examination led by Maine, Massachusetts, and Tennessee relating to our disability claims handling practices. A total of 48 states and the District of Columbia are parties to the settlement agreements. In addition, the U.S. Department of Labor, which had been conducting an inquiry relating to certain ERISA plans, is a party to the settlement agreements, and the NYAG, which had engaged in its own investigation of our claims handling practices, notified us that it was in support of the settlement and was, therefore, closing its investigation on this issue. The examination report did not make any findings of violations of law or market conduct regulations. However, the examination report did identify areas of concern. These became the focus of specific changes and enhancements to our disability claims handling operations which are designed to assure each claim decision is made in a consistently high quality manner.

The primary components of the settlement agreements include enhancements to our claims handling procedures; a reassessment process for claimants of certain previously denied or closed claims who elect to participate; additional corporate and board governance to support the oversight of the reassessment process and general claims handling practices; and payment of a fine in the amount of $15.0 million that was allocated among the states and jurisdictions that joined the agreements and a potential fine of $145.0 million in the future if certain standards are not met in examinations at the end of approximately two years.

In the fourth quarter of 2004, we recorded a charge of $127.0 million before tax, or $87.8 million after tax, comprised of four elements: $27.5 million of incremental direct operating expenses to conduct the two-year reassessment process; $44.0 million for benefit costs and reserves from claims reopened from the reassessment; $40.5 million for additional benefit costs and reserves for claims already incurred and currently in inventory that are anticipated as a result of the claim process changes being implemented; and the $15.0 million fine. The charge decreased before-tax operating results for the U.S. Brokerage segment group income protection and individual income protection – recently issued lines of business $116.7 million and $1.7 million, respectively, and the Individual Income Protection – Closed Block segment $8.6 million.

Disposition

During the second quarter of 2004, we closed the sale of our Canadian operations. Financial results for the Canadian branch are reported as discontinued operations. The losses recognized during 2004 and 2003 were $60.8 million and $161.7 million after tax, respectively.

Restructuring of Individual Income Protection – Closed Block Business

In the first quarter of 2004, we restructured our individual income protection – closed block business and entered into reinsurance agreements which effectively provide approximately 60 percent reinsurance coverage for our overall consolidated risk above a specified retention limit. We have not yet reached the retention limit and do not currently anticipate that once reached, our losses would exceed the maximum risk limit for the reinsurer and revert back to us. The reinsurance receivable for this contract, as reported in our consolidated statements of financial condition, was approximately $592.1 million at September 30, 2006.

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In conjunction with the restructuring of the individual income protection – closed block business, effective January 1, 2004, we modified our reporting segments to include a separate segment for this business. The reporting, monitoring, and management of the closed block of individual income protection business as a discrete segment is consistent with the Company’s financial restructuring and separation of this business from the lines of business which actively market new products. In the past, this business had been reported in combination with the individual income protection – recently issued line of business. Prior to 2004, detailed separate financial metrics and models were unavailable to appropriately manage this block of business separately from the recently issued individual income protection block of business.

The separation of the closed block business into a separate reporting segment required us to perform, separately for the individual income protection – closed block business and individual income protection – recently issued business, impairment testing for goodwill and loss recognition testing for the recoverability of deferred policy acquisition costs and value of business acquired. As required under GAAP, prior to the change in reporting segments, these tests were performed for the individual income protection line of business on a combined basis. The testing indicated impairment of the individual income protection – closed block deferred policy acquisition costs, value of business acquired, and goodwill balances of $282.2 million, $367.1 million, and $207.1 million, respectively. These impairment charges, $856.4 million before tax and $629.1 million after tax, were recorded in the first quarter of 2004.

Also as part of the restructuring, we analyzed our reserve assumptions related to our individual income protection – closed block reserves as a stand-alone segment. Previously these reserves were analyzed for the individual income protection line of business on a combined basis. Included in the analysis was a review of morbidity assumptions, primarily claim resolution rates and claim reserve discount rate assumptions. Based upon this analysis, we lowered our claim reserve discount rate to reflect the segmentation of assets between the individual income protection – recently issued business and the individual income protection – closed block business, the change in our investment portfolio yield rates during the first quarter of 2004, our expectation of future investment portfolio yield rates, and our desire to maintain the relationship between our claim reserve discount rate and our investment portfolio yield rate for the individual income protection – closed block at our long-term objective. The segmentation of the investment portfolio was necessary to ensure appropriate matching of the duration of the assets and the related policy liabilities. Based on this analysis, in the first quarter of 2004 we increased our individual income protection – closed block claim reserves by $110.6 million before tax, or $71.9 million after tax, to reflect our current estimate of future benefit obligations. The first quarter 2004 change represented a 1.2 percent increase in total net Individual Income Protection – Closed Block segment reserves as of March 31, 2004, which equaled $9.530 billion prior to this increase.

2003 Significant Transactions and Events

Reserve Strengthening

In the fourth quarter of 2003 we recognized an after tax increase in U.S. Brokerage group income protection reserves of $286.0 million, or $440.0 million before tax. In January 2004, we completed our annual review of claim reserves to ensure that our claim reserves make adequate and reasonable provision for future benefits and expenses. Approximately $300.0 million of the reserve strengthening reflected implementation of a lower discount rate for our U.S. Brokerage group income protection claim reserves. The discount rate was lowered to reflect our expectation of future investment portfolio yield rates and our new discount rate management approach of maintaining a wider spread between our group income protection portfolio investment yield rate and our average discount rate. Approximately $140.0 million of the reserve increase related to a strengthening of the morbidity assumptions to reflect the impact of the continuing weak economic cycle on claim incidence and severity. Claim incidence in the second half of 2003 was 8.4 percent higher than the first half of the year and 5.8 percent above the second half of 2002. The reserve increase represents a 6.6 percent increase in total net U.S. Brokerage group income protection reserves as of December 31, 2003, which were $6.674 billion prior to this increase.

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In the first quarter of 2003 we recognized an after tax increase in our U.S. Brokerage group long-term income protection GAAP reserves of $454.0 million before tax, or $295.1 million after tax. In April of 2003, we completed an analysis of our assumptions related to our group long-term income protection claim reserves. This analysis was initiated based on a trend in lower net claim recovery rates observed during the first quarter of 2003. The claim recovery rates during the first quarter were below expected levels and were lower than those experienced in the past three years. The analysis of emerging net claim recovery rates and the reasons driving the changes resulted in a reduction in our long-term expectations. Based on the analysis noted above, we increased our U.S. Brokerage group long-term income protection claim reserves as of March 31, 2003 to reflect our current estimate of future benefit obligations. The analysis indicated not only a decrease in overall claim recovery rates, but a change in claim recovery rates by claim duration.

Accounting Principle Change

Effective October 1, 2003, we adopted the provisions of Statement of Financial Accounting Standards No. 133 Implementation Issue B36 (DIG Issue B36), Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposure That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor Under Those Instruments. DIG Issue B36 addresses financial accounting and reporting for embedded derivatives in modified coinsurance contracts that incorporate credit risk exposure unrelated to the credit risk of the counterparty to the reinsurance contract and requires the bifurcation of any such derivative from the host reinsurance contract. At the date of adoption, we had two reinsurance contracts for which DIG Issue B36 was applicable, one of which was recaptured in 2005. The adoption of DIG Issue B36 in 2003 resulted in a $39.9 million cumulative effect of accounting principle change, net of $21.4 million in tax.

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