8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 2, 2007

UNUM GROUP

(Exact name of registrant as specified in its charter)

Delaware	1-11834	62-1598430
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1 Fountain Square

Chattanooga, Tennessee 37402

(Address of principal executive offices)(Zip Code)

(423) 294-1011

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On May 2, 2007, Unum Group issued a press release reporting its results for the first quarter of 2007, a copy of which is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

Also on May 2, 2007, Unum Group posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the first quarter of 2007. A copy of the Statistical Supplement is furnished herewith as Exhibit 99.2 and incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information included or incorporated in this Item 2.02, including Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information and exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01 Regulation FD Disclosure.

On May 2, 2007, Unum Group posted on its website at www.unum.com updated information with regard to its claim reassessment process for the first quarter of 2007.

In accordance with General Instruction B.2 of Form 8-K, the information included or incorporated in this Item 7.01, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The following exhibits are filed with this Report:

99.1	Press release of Unum Group dated May 2, 2007, of earnings for the first quarter of 2007.
99.2	Statistical Supplement of Unum Group for the first quarter of 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Unum Group (Registrant)
Date: May 2, 2007	By:	/s/ Susan N. Roth
		Name: Susan N. Roth Title:   Vice President, Corporate Secretary and   Assistant General Counsel

INDEX TO EXHIBITS

EXHIBIT

99.1	Press release of Unum Group dated May 2, 2007, of earnings for the first quarter of 2007.
99.2	Statistical Supplement of Unum Group for the first quarter of 2007.

EX-99.1

EXHIBIT 99.1

1 Fountain Square Chattanooga, TN 37402 www.unum.com

news	FOR IMMEDIATE RELEASE
	Contacts
	INVESTORS  Thomas A. H. White 423 294 8996
	Madhavi Venkatesan 423 294 1630

Unum Group Reports

First Quarter 2007 Results

Strong Earnings Across all Operating Segments

Continued Improvement in Unum US Group Income Protection Line

Operating EPS Guidance Revised Upward for 2007

CHATTANOOGA, Tenn. (May 2, 2007) – Unum Group (NYSE: UNM) announced today its results for the first quarter of 2007. The Company reported net income of $178.3 million ($0.51 per diluted common share), compared to net income of $73.4 million ($0.23 per diluted common share) for the first quarter of 2006.

Included in the results for the first quarter is income from discontinued operations of $6.9 million after tax ($0.02 per diluted common share) in 2007, compared to $2.0 million after tax ($0.01 per diluted common share) in the first quarter of 2006. Also included are net realized after-tax investment losses of $3.2 million ($0.01 per diluted common share) in the first quarter of 2007 and gains of $1.5 million in the first quarter of 2006. The first quarter of 2006 also included a claim reassessment charge of $55.9 million after tax and debt extinguishment costs of $3.4 million after tax.

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

1

Adjusting for these items, income from continuing operations on an after-tax basis was $174.6 million ($0.50 per diluted common share) in the first quarter of 2007, compared to $129.2 million ($0.40 per diluted common share) in the first quarter of 2006.

Commenting on Unum’s results, Thomas R. Watjen, president and chief executive officer, said, “Overall, we had a very solid quarter and a strong start to 2007. I am particularly encouraged by the continued improvement in our Unum US group income protection line of business and am once again pleased with the excellent results from our Unum UK and Colonial subsidiaries.”

“Our focus continues to be on enhancing our long-term capital management strategy, improving profit margins in those areas not meeting our expectations, and positioning our businesses to grow in a profitable, disciplined manner. I am pleased with many of the activities currently underway that will help position us for future growth. Our focus on product and service innovation, as evidenced by our new Simply Unum offering, and our expanded marketing focus, including the successful launch of our new brand, are important elements of our growth strategy. Our confidence in our future continues to grow as evidenced by the upward revision in our guidance for 2007 operating earnings to a range of $1.91 to $1.95 per share from our previous guidance of $1.83 to $1.87.”

2

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

RESULTS BY SEGMENT

On March 2, 2007, the Company formally announced its name change from “UnumProvident Corporation” to “Unum Group,” and as of that date shares of the Company have been trading under the Unum Group name. As previously noted, the Company renamed its principle operating segments as part of its current rebranding process. The Company’s three primary operating segments are Unum US (formerly U.S. Brokerage), Unum UK (formerly Unum Limited), and Colonial.

In the following discussions of the Company’s operating segment results, “operating revenue” excludes net realized investment gains and losses. “Operating income” or “operating loss” excludes income tax and net realized investment gains and losses.

Unum US Segment

Unum US reported operating income of $142.4 million in the first quarter of 2007, compared to income of $28.5 million in the first quarter of 2006. The year ago results for this segment included the before-tax claim reassessment charge of $72.8 million. Excluding this charge, the first quarter of 2006 operating income was $101.3 million. Premium income declined 4.5 percent to $1,244.9 million in the first quarter of 2007 from $1,303.8 million in the first quarter of 2006.

Within this segment, the group income protection line of business reported operating income of $28.7 million in the first quarter of 2007, compared to a loss of $71.6 million in the first quarter of 2006. The results for the year ago quarter

3

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

include the reassessment charge of $72.8 million. The benefit ratio for the quarter was 93.4 percent compared to 95.5 percent in the first quarter 2006, excluding the impact of the reassessment charge, and 94.0 percent in the fourth quarter of 2006. The Company continued to experience improvements in its claims management and also experienced slightly lower new claim incidence in its group long-term income protection line of business during the first quarter of 2007. Premium income in group income protection declined 4.8 percent to $590.1 million in the first quarter of 2007, compared to $619.8 million in the first quarter of 2006. The decline is attributable, in part, to the Company’s disciplined approach to pricing, renewals, and risk selection. Sales of fully insured group long-term income protection products in the first quarter of 2007 declined by 40.8 percent to $25.5 million, compared to $43.1 million in the year ago quarter. Sales of fully insured group short-term income protection products in the first quarter of 2007 increased 26.7 percent to $15.2 million, compared to $12.0 million in the first quarter of 2006. Premium persistency in the group long-term income protection line of business was 84.6 percent for first quarter of 2007, compared to 86.6 percent in the first quarter of 2006, primarily reflecting lower persistency in the Company’s large case business. Case persistency for this line was 87.6 percent in the first quarter of 2007, compared to 87.5 percent in the year ago quarter. Premium persistency in the group short-term income protection line of business declined to 75.1 percent for first quarter of 2007 compared to 81.9 percent for first quarter of 2006, while case persistency was relatively stable at 85.8 percent for the first quarter of 2007 compared to 85.7 percent in the year ago quarter.

4

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

Group life and accidental death and dismemberment reported a 12.5 percent increase in operating income to $49.4 million in the first quarter of 2007, compared to $43.9 million in the first quarter of 2006, reflecting favorable mortality trends. Premium income declined 12.7 percent to $313.2 million in the first quarter of 2007, compared to $358.8 million in the first quarter of 2006, reflecting the Company’s disciplined approach to pricing, renewals, and risk selection. Sales of group life products in the first quarter of 2007 declined 39.5 percent to $20.1 million, compared to $33.2 million in the first quarter of 2006. Premium persistency in the group life line of business was 78.1 percent in the first quarter of 2007, compared to 79.1 percent in the year ago quarter. Case persistency was 85.7 percent in the first quarter of 2007, compared to 86.4 percent in the year ago quarter.

The Unum US supplemental and voluntary lines of business reported a 14.4 percent increase in operating income to $64.3 million in the first quarter of 2007, compared to $56.2 million in the first quarter of 2006. The improvement in earnings was driven by improved results in the performance of the individual income protection – recently issued and voluntary workplace benefits lines of business, which offset lower earnings in the long-term care line of business. Premium income for supplemental and voluntary lines increased 5.0 percent to $341.6 million in the first quarter of 2007, compared to $325.2 million in the first quarter of 2006. Sales in the voluntary workplace benefits line of business declined 9.7 percent in the first quarter of 2007 compared to the first quarter of 2006, while sales in the individual income protection – recently issued line increased 17.9 percent and long-term care sales increased 24.2 percent compared with the year ago quarter.

5

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

Unum UK Segment

Unum UK reported operating income of $75.1 million in the first quarter of 2007, a 38.1 percent increase, compared to $54.4 million in the first quarter of 2006. Operating income benefited from a decline in the benefit ratio to 61.1 percent in the first quarter of 2007 compared to 67.5 percent in the first quarter of 2006, resulting in large part from lower claim incidence in the group long-term income protection line. Operating income also benefited from the continued favorable year over year foreign currency exchange rate. In local currency, operating income for the first quarter of 2007 increased 23.5 percent from the first quarter of 2006. Premium income increased 16.1 percent to $222.3 million in the first quarter of 2007, compared to $191.4 million in the first quarter of 2006. In local currency, premium income increased 4.1 percent compared to the first quarter of 2006. Sales increased 77.8 percent to $20.8 million in the first quarter of 2007, compared to $11.7 million in the first quarter of 2006. In local currency, sales for the quarter increased 58.2 percent compared to the first quarter of 2006.

Colonial Segment

Colonial reported a 29.0 percent increase in operating income to $59.6 million in the first quarter of 2007, compared to $46.2 million in the first quarter of 2006. Results in the first quarter of 2007 were driven by favorable claims experience. The benefit ratio in the first quarter of 2007 was 49.2 percent,

6

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

compared to 52.1 percent for the same period in 2006. Premium income increased to $223.4 million in the first quarter of 2007, compared to $202.6 million in the first quarter of 2006. Sales increased slightly to $67.6 million in the first quarter of 2007 from $67.2 million in the first quarter of 2006. New account growth of 8.0 percent in the quarter was largely offset by a reduction in the average new case size. For the first quarter of 2007, new agent contracts increased 12.9 percent. Average weekly producers for the first quarter of 2007 declined slightly compared to the first quarter of 2006, while average weekly premium per agent increased 0.9 percent.

Individual Income Protection – Closed Block Segment

The Individual Income Protection – Closed Block segment reported operating income of $22.5 million in the first quarter of 2007, compared to $14.7 million in the first quarter of 2006. Results in the year ago quarter included the before-tax claim reassessment charge of $13.2 million. The interest adjusted loss ratio increased to 93.9 percent in the first quarter of 2007 compared to 91.6 percent in the first quarter of 2006, excluding the impact of the claim reassessment charge, due primarily to an increase in benefit payments which were partially offset by a higher rate of claim recoveries.

Other Segment

The Other segment reported operating income of $3.6 million in the first quarter of 2007, compared to $4.8 million in the first quarter of 2006, reflecting the continued wind down of product lines that are no longer actively marketed.

7

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

Corporate Segment

The Corporate segment, which includes investment earnings on corporate assets not specifically allocated to a line of business, corporate interest expense, and certain other corporate expenses, reported a loss of $39.6 million in the first quarter of 2007, compared to a loss of $43.5 million in the first quarter of 2006. Interest and debt expense in the first quarter 2007 was $45.9 million, compared to $53.1 million in the first quarter of 2006. The segment results also include debt extinguishment costs of $2.4 million and $5.3 million before tax in the first quarter of 2007 and 2006, respectively.

OTHER INFORMATION

Sale of GENEX Services, Inc.

On March 1, 2007, the Company closed the sale of its wholly-owned subsidiary, GENEX, to Trident IV, L.P., a fund managed by Stone Point Capital LLC. The sale reflects the Company’s strategy to focus on its core business areas and deploy its capital to further the growth of this business. The after-tax gain on the transaction of $6.2 million is included in the first quarter of 2007 results for discontinued operations.

Shares Outstanding

The Company’s average number of shares (000s) outstanding, assuming dilution, was 346,380.3 for the first quarter of 2007, compared to 319,636.8 for the first quarter of 2006.

8

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

Accounting Pronouncements

Effective January 1, 2007, the Company adopted the provisions of 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, which provides guidance on accounting for deferred acquisition costs on internal replacements of insurance and investment contracts, and FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, an interpretation of Statement of Financial Accounting Standard No. 109, which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. The cumulative effect of applying the provisions of SOP 05-1 and FIN 48 changed the Company’s 2007 opening balance of retained earnings by $(445.2) million and $22.7 million, respectively.

Book Value

Book value per common share as of March 31, 2007 was $21.52, compared to $21.94 at March 31, 2006. Excluding the net unrealized gain on securities and the net gain on cash flow hedges, book value per common share at March 31, 2007 was $19.56, compared to $20.40 at March 31, 2006.

OUTLOOK

The Company is revising upward its 2007 operating earnings guidance to a range of $1.91 to $1.95 per share from previous guidance of $1.83 to $1.87 per share, based on the first quarter performance and current expectations for the

9

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

remainder of the year. Incorporated in the Company’s estimates is continued improvement in the benefit ratio for the Unum US group income protection line to within its previously stated target range of 90.0 percent to 92.0 percent by the end of 2007. Additionally, the Company is revising upward its guidance for the 2007 return on equity for its three primary operating segments to a range of 13.1 percent to 13.4 percent from previous guidance of 11.9 percent, and for its total Company to a range of 9.7 percent to 9.9 percent from previous guidance of a range of 9.0 percent to 9.5 percent.

NON-GAAP RECONCILIATION

The Company analyzes its performance using non-GAAP financial measures which exclude certain items and the related tax thereon from net income. The Company believes operating income or loss, excluding realized investment gains and losses, which are recurring, and excluding certain other items specified in the non-GAAP reconciliation, is a better performance measure and a better indicator of the profitability and underlying trends in its business. Realized investment gains and losses are dependent on market conditions and general economic events and are not necessarily related to decisions regarding the Company’s underlying business. The exclusion of certain other items specified in the non-GAAP reconciliation also enhances the understanding and comparability of the Company’s performance and the underlying fundamentals in its operations, but this exclusion is not an indication that similar items may not recur. The Company believes book value per common share excluding unrealized gains and losses on securities and the net gain on cash flow hedges, which also tend to fluctuate dependent on market conditions and general economic trends, is an important measure. For a reconciliation to the most directly comparable GAAP measures, refer to the attached digest of earnings.

10

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

CONFERENCE CALL INFORMATION

Unum Group senior management will host a conference call on Thursday, May 3, 2007 at 9:00 a.m. (EST) to discuss the results of operations for the first quarter. Included in the discussion will be forward-looking information, such as guidance on future results and trends in operations, as well as other material information.

The dial-in number for the conference call is (800) 810-0924 for U.S. and Canada. For International, the dial-in number is (913) 981-4900. A live webcast of the call will also be available at www.unum.com in a listen-only mode. It is recommended that webcast viewers access the “Investors and Shareholders” section of the Company’s website and opt-in to the webcast fifteen minutes prior to the start of the call. A replay of the call will be available by telephone and on the Company’s website through Wednesday, May 9. In conjunction with the Company’s earnings announcement, the Company’s Statistical Supplement for the first quarter of 2007 has been made available on the “Investors and Shareholders” section of the Company’s website.

ABOUT UNUM GROUP

Unum (www.unum.com) is one of the leading providers of employee benefits products and services and the largest provider of group and individual disability income protection insurance in the United States and the United Kingdom.

11

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

SAFE HARBOR STATEMENT

Statements in this press release that are not historical facts, such as our earnings per share guidance and our Unum US group income protection benefit ratio guidance, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include such general matters as general economic or business conditions; events or consequences relating to terrorism, acts of war and catastrophes, including natural and man-made disasters; competitive factors, including pricing pressures; legislative, regulatory, accounting, or tax law changes; and the interest rate environment. More specifically, they include fluctuations in insurance reserve liabilities; changes in projected new sales and renewals; variations between projections and actual experience in persistency rates, incidence and recovery rates, pricing and underwriting; retained risks in our reinsurance operations; availability and cost of reinsurance; the level and results of litigation, rating agency actions, and regulatory actions and investigations; actual experience in implementing and complying with the multistate market conduct regulatory settlement agreements and the California Department of Insurance settlement agreement; negative media attention; changes in assumptions relating to deferred acquisition costs, value of business acquired, or goodwill; the level of pension benefit costs and funding; investment results, including credit deterioration of investments; the ability of our

12

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

insurance company subsidiaries to pay dividends or extend credit to us and certain of our intermediate holding company subsidiaries and/or finance subsidiaries; and effectiveness of product support and customer service. For further information of risks and uncertainties that could affect actual results, see our filings with the Securities and Exchange Commission, including information in the sections titled “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2006. The forward-looking statements in this press release are being made as of the date of this press release, and we expressly disclaim any obligation to update or revise any forward-looking statement contained herein.

# # #

13

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

DIGEST OF EARNINGS

(Unaudited)

Unum Group (UNM:NYSE)

and Subsidiaries

($ in millions, except share data)

	Three Months Ended March 31
	2007			2006
Operating Revenue by Segment	$	2,604.3		$	2,597.6
Net Realized Investment Gain (Loss)		(3.7	)		2.5
Total Revenue	$	2,600.6		$	2,600.1
Operating Income by Segment	$	263.6		$	105.1
Net Realized Investment Gain (Loss)		(3.7	)		2.5
Income Tax		88.5			36.2
Income from Continuing Operations		171.4			71.4
Income from Discontinued Operations, Net of Tax		6.9			2.0
Net Income	$	178.3		$	73.4
PER SHARE INFORMATION
Assuming Dilution:
Income from Continuing Operations	$	0.49		$	0.22
Income from Discontinued Operations, Net of Tax		0.02			0.01
Net Income	$	0.51		$	0.23
Basic:
Income from Continuing Operations	$	0.50		$	0.24
Income from Discontinued Operations, Net of Tax		0.02			0.01
Net Income	$	0.52		$	0.25
Weighted Average Common Shares – Basic (000s)		341,208.0			296,560.4
Weighted Average Common Shares – Assuming Dilution (000s)		346,380.3			319,636.8

14

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

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

	Three Months Ended March 31, 2007						Three Months Ended March 31, 2006
	(in millions)			per share *			(in millions)			per share *
Income from Continuing Operations, As Adjusted	$	174.6		$	0.50		$	129.2		$	0.40
Adjustments, Before Tax
Net Realized Investment Gain (Loss)		(3.7	)					2.5
Regulatory Reassessment Charge								(86.0	)
Debt Extinguishment Costs								(5.3	)
Tax on Adjustments		0.5						31.0
Income from Continuing Operations		171.4			0.49			71.4			0.22
Income from Discontinued Operations		6.9			0.02			2.0			0.01
Net Income	$	178.3		$	0.51		$	73.4		$	0.23
	Three Months Ended March 31, 2006
	(in millions)			benefit ratio**
Unum US Group Income Protection
Premium Income	$	619.8
Benefits and Change in Reserves for Future Benefits		664.4			107.2	%
Regulatory Reassessment Charge		(72.8	)
Benefits and Change in Reserves for Future Benefits,
Excluding Regulatory Reassessment Charge		591.6			95.5	%
	As of March 31
	2007						2006
	(in millions)			per share			(in millions)			per share
Total Stockholders’ Equity, As Adjusted	$	6,705.8		$	19.56		$	6,108.2		$	20.40
Net Unrealized Gain on Securities		490.3			1.43			256.2			0.86
Net Gain on Cash Flow Hedges		180.5			0.53			203.6			0.68
Total Stockholders’ Equity (Book Value)	$	7,376.6		$	21.52		$	6,568.0		$	21.94

 * Assuming Dilution

** Benefits and Change in Reserves for Future Benefits as a percent of Premium Income

15

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

EX-99.2

First Quarter 2007

Statistical Supplement

www.unum.com

Exhibit 99.2

Unum Group

Statistical Supplement First Quarter 2007

TABLE OF CONTENTS

(dollars in millions, except share data)

Interim Results are Unaudited

	Page
Financial Highlights	1
Consolidated Statements of Operations	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	9
Individual Income Protection - Closed Block	10
Other	11
Corporate	12
Reserves	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

Unum Group Financial Highlights

	Three Months Ended					Year Ended
	3/31/2007			3/31/2006		12/31/2006		12/31/2005			12/31/2004
Financial Results
Premium Income	$	1,944.0		$	1,970.0	$	7,948.2	$	7,815.6		$	7,839.6
Segment Operating Revenue	$	2,604.3		$	2,597.6	$	10,533.1	$	10,266.0		$	10,258.6
Net Realized Investment Gain (Loss)		(3.7	)		2.5		2.2		(6.7	)		29.2
Revenue	$	2,600.6		$	2,600.1	$	10,535.3	$	10,259.3		$	10,287.8
Income (Loss) from Continuing Operations	$	171.4		$	71.4	$	403.6	$	504.0		$	(201.4	)
Income (Loss) from Discontinued Operations, net of tax		6.9			2.0		7.4		9.6			(51.6	)
Net Income (Loss)	$	178.3		$	73.4	$	411.0	$	513.6		$	(253.0	)
Assets	$	52,324.8		$	50,471.3	$	52,823.3	$	51,866.8		$	50,832.3
Stockholders’ Equity	$	7,376.6		$	6,568.0	$	7,718.8	$	7,363.9		$	7,224.1

2006

•     First quarter results include a claim reassessment charge of $86.0 million before tax, or $55.9 million after tax, and full year 2006 results include claim reassessment charges of $411.4 million before tax, or $267.4 million after tax.

•     First quarter 2006 results include costs related to early retirement of debt of $5.3 million before tax, or $3.4 million after tax, and full year 2006 results include $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.

2005

•     Full year 2005 results include 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.

•     Full year 2005 results include a gain on the sale of the U.K. Netherlands branch of $5.7 million before tax, or $4.0 million after tax.

•     Full year 2005 results include an income tax benefit of $42.8 million related to the reduction of income tax liabilities.

2004

•     Full year 2004 results include 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 results include 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.

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

1

Unum Group Financial Highlights

	Three Months Ended				Year Ended
	3/31/2007		3/31/2006		12/31/2006		12/31/2005		12/31/2004
Per Common Share Information
Assuming Dilution:
Income (Loss) from Continuing Operations	$	0.49	$	0.22	$	1.21	$	1.61	$	(0.68	)
Income (Loss) from Discontinued Operations, net of tax		0.02		0.01		0.02		0.03		(0.18	)
Net Income (Loss)	$	0.51	$	0.23	$	1.23	$	1.64	$	(0.86	)
Basic:
Income (Loss) from Continuing Operations	$	0.50	$	0.24	$	1.25	$	1.71	$	(0.68	)
Income (Loss) from Discontinued Operations, net of tax		0.02		0.01		0.02		0.03		(0.18	)
Net Income (Loss)	$	0.52	$	0.25	$	1.27	$	1.74	$	(0.86	)
Dividends Paid	$	0.075	$	0.075	$	0.300	$	0.300	$	0.300
Book Value	$	21.52	$	21.94	$	22.53	$	24.66	$	24.36
Price (UNM closing price on last trading day of period)	$	23.03	$	20.48	$	20.78	$	22.75	$	17.94

1.1

Unum Group Consolidated Statements of Operations

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Revenue
Premium Income	$	1,944.0		$	1,970.0		$	7,948.2		$	7,815.6		$	7,839.6
Net Investment Income		589.5			563.8			2,320.6			2,188.3			2,158.7
Net Realized Investment Gain (Loss)		(3.7	)		2.5			2.2			(6.7	)		29.2
Other Income		70.8			63.8			264.3			262.1			260.3
Total Revenue		2,600.6			2,600.1			10,535.3			10,259.3			10,287.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		1,729.3			1,867.5			7,577.2			7,083.2			7,248.4
Commissions		213.0			210.9			819.0			804.7			842.3
Interest and Debt Expense - Non-recourse Debt		2.0			—			1.3			—			—
Interest and Debt Expense - All Other Debt		43.9			53.1			190.5			208.0			207.1
Cost Related to Early Retirement of Debt		2.4			5.3			25.8			—			—
Deferral of Acquisition Costs		(138.1	)		(135.9	)		(528.2	)		(519.4	)		(557.3	)
Amortization of Deferred Acquisition Costs		116.6			119.8			478.6			463.7			436.7
Impairment of Intangible Assets		—			—			—			—			856.4
Other Expenses		371.6			371.8			1,505.7			1,525.2			1,529.9
Total Benefits and Expenses		2,340.7			2,492.5			10,069.9			9,565.4			10,563.5
Income (Loss) from Continuing Operations Before
Income Taxes		259.9			107.6			465.4			693.9			(275.7	)
Income Taxes (Benefit)		88.5			36.2			61.8			189.9			(74.3	)
Income (Loss) from Continuing Operations		171.4			71.4			403.6			504.0			(201.4	)
Income (Loss) from Discontinued Operations, net of tax		6.9			2.0			7.4			9.6			(51.6	)
Net Income (Loss)	$	178.3		$	73.4		$	411.0		$	513.6		$	(253.0	)
Average Number of Shares Outstanding
Basic		341,207,999			296,560,376			324,654,923			295,776,405			295,224,305
Dilutive Securities:
Purchase Contracts		3,787,038			20,349,227			8,153,001			14,297,834			—
Options and Other Dilutive Securities		1,385,222			2,727,230			1,553,820			2,438,404			—
Assuming Dilution		346,380,259			319,636,833			334,361,744			312,512,643			295,224,305
Actual Number of Shares Outstanding		342,802,960			299,417,651			342,627,521			298,557,764			296,545,913

2

Unum Group Sales Data

	Three Months Ended						Year Ended
	3/31/2007		3/31/2006		% Change		12/31/2006		12/31/2005		12/31/2004
Unum US Segment
Fully Insured Products
Group Long-term Income Protection	$	25.5	$	43.1	(40.8	)%	$	208.5	$	180.4	$	180.4
Group Short-term Income Protection		15.2		12.0	26.7			74.1		74.8		79.5
Group Life		20.1		33.2	(39.5	)		149.8		157.8		166.5
Accidental Death & Dismemberment		2.0		2.8	(28.6	)		13.7		14.7		12.8
Individual Income Protection - Recently Issued		14.5		12.3	17.9			55.4		53.8		61.6
Group Long-term Care		6.1		3.9	56.4			25.1		21.1		18.7
Individual Long-term Care		2.1		2.7	(22.2	)		11.0		13.0		19.5
Voluntary Workplace Benefits		49.4		54.7	(9.7	)		134.2		130.2		114.1
Total Fully Insured Products		134.9		164.7	(18.1	)		671.8		645.8		653.1
Administrative Services Only (ASO) Products
Group Long-term Income Protection		—		—	—			3.7		1.8		1.1
Group Short-term Income Protection		0.7		1.3	(46.2	)		10.0		5.8		7.3
Total ASO Products		0.7		1.3	(46.2	)		13.7		7.6		8.4
Unum US Segment		135.6		166.0	(18.3	)		685.5		653.4		661.5
Unum UK Segment
Group Long-term Income Protection		16.3		7.2	126.4			79.1		91.2		103.3
Group Life		2.8		3.1	(9.7	)		16.5		33.0		68.1
Individual Income Protection		1.7		1.4	21.4			5.5		8.1		11.1
Unum UK Segment		20.8		11.7	77.8			101.1		132.3		182.5
Colonial Segment
Income Protection		42.8		42.0	1.9			194.4		176.8		172.5
Life		14.3		14.3	—			66.6		60.6		58.6
Cancer and Critical Illness		10.5		10.9	(3.7	)		54.1		49.0		47.4
Colonial Segment		67.6		67.2	0.6			315.1		286.4		278.5
Individual Income Protection - Closed Block Segment		0.9		1.4	(35.7	)		4.4		6.5		7.8
Total Sales from Continuing Operations		224.9		246.3	(8.7	)		1,106.1		1,078.6		1,130.3
Sales from Discontinued Operations		—		—	—			—		—		10.1
Total Sales	$	224.9	$	246.3	(8.7	)	$	1,106.1	$	1,078.6	$	1,140.4

3

Unum Group Consolidated Balance Sheets

	March 31, 2007			December 31,
				2006			2005
Assets
Investments
Fixed Maturity Securities	$	35,251.8		$	35,001.5		$	34,856.8
Mortgage Loans		1,006.2			944.0			739.4
Real Estate		17.9			17.9			18.2
Policy Loans		3,431.5			3,429.5			3,201.4
Other Long-term Investments		106.0			122.0			122.8
Short-term Investments		620.7			648.4			417.9
Total Investments		40,434.1			40,163.3			39,356.5
Cash and Bank Deposits		135.5			121.3			67.1
Accounts and Premiums Receivable		1,991.9			2,057.1			1,951.6
Reinsurance Receivable		5,558.1			5,512.2			5,609.2
Accrued Investment Income		660.0			646.8			618.7
Deferred Acquisition Costs		2,326.8			2,983.1			2,913.3
Goodwill		204.2			204.1			202.4
Other Assets		993.3			994.6			1,011.1
Other Assets - Discontinued Operations		—			112.3			107.3
Separate Account Assets		20.9			28.5			29.6
Total Assets	$	52,324.8		$	52,823.3		$	51,866.8
Liabilities
Policy and Contract Benefits	$	2,083.3		$	2,220.4		$	2,063.4
Reserves for Future Policy and Contract Benefits		36,040.3			35,689.4			34,041.5
Unearned Premiums		529.7			520.1			481.8
Other Policyholders’ Funds		2,004.4			2,019.1			2,235.5
Income Tax		377.9			611.7			1,002.3
Long-term Debt - Non-recourse		120.0			130.0			—
Long-term Debt - All Other		2,379.7			2,529.6			3,261.6
Other Liabilities		1,392.0			1,326.7			1,360.3
Other Liabilities - Discontinued Operations		—			29.0			26.9
Separate Account Liabilities		20.9			28.5			29.6
Total Liabilities		44,948.2			45,104.5			44,502.9
Stockholders’ Equity
Common Stock		34.5			34.4			30.1
Additional Paid-in Capital		2,196.6			2,200.0			1,627.9
Accumulated Other Comprehensive Income		543.7			612.8			1,163.5
Retained Earnings		4,656.0			4,925.8			4,610.4
Treasury Stock		(54.2	)		(54.2	)		(54.2	)
Deferred Compensation		—			—			(13.8	)
Total Stockholders’ Equity		7,376.6			7,718.8			7,363.9
Total Liabilities and Stockholders’ Equity	$	52,324.8		$	52,823.3		$	51,866.8

4

Unum Group Deferred Acquisition Costs by Segment

	Unum US			Unum UK			Colonial			Other			Consolidated
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		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
Capitalized		76.5			9.3			52.3			—			138.1
Amortized		(66.4	)		(11.9	)		(38.3	)		—			(116.6	)
Cumulative Effect of SOP 05-1		(589.8	)		(88.3	)		—			—			(678.1	)
Foreign Currency and Other		—			0.3			—			—			0.3
Balances at March 31, 2007	$	1,625.5		$	74.5		$	626.8		$	—		$	2,326.8

4.1

Unum Group Balance Sheets by Segment - March 31, 2007

	Unum US
	Group Income Protection		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial		Individual Income Protection- Closed Block		Corporate and Other			Consolidated
Assets
Investments	$	10,009.5	$	2,223.1	$	5,266.8	$	17,499.4	$	3,270.4	$	1,585.2	$	12,071.8	$	6,007.3		$	40,434.1
Deferred Acquisition Costs		150.4		103.5		1,371.6		1,625.5		74.5		626.8		—		—			2,326.8
Goodwill		2.5		—		187.5		190.0		14.2		—		—		—			204.2
All Other		525.9		154.9		406.9		1,087.7		512.0		204.0		3,553.0		4,003.0			9,359.7
Total Assets	$	10,688.3	$	2,481.5	$	7,232.8	$	20,402.6	$	3,871.1	$	2,416.0	$	15,624.8	$	10,010.3		$	52,324.8
Liabilities
Reserves and Policyholder Benefits	$	8,709.2	$	1,547.5	$	4,687.2	$	14,943.9	$	2,764.9	$	1,403.9	$	12,763.8	$	8,781.2		$	40,657.7
Debt		—		—		—		—		—		—		—		2,499.7			2,499.7
All Other		240.8		26.5		400.4		667.7		148.7		166.5		26.3		781.6			1,790.8
Total Liabilities		8,950.0		1,574.0		5,087.6		15,611.6		2,913.6		1,570.4		12,790.1		12,062.5			44,948.2
Other Allocated Stockholders’ Equity		1,688.3		875.5		1,843.1		4,406.9		890.8		811.9		2,654.4		(2,058.2	)		6,705.8
Unrealized Gain on Securities		50.0		32.0		302.1		384.1		66.7		33.7		180.3		6.0			670.8
Total Allocated Stockholders’ Equity		1,738.3		907.5		2,145.2		4,791.0		957.5		845.6		2,834.7		(2,052.2	)		7,376.6
Total Liabilities and Allocated Stockholders’ Equity	$	10,688.3	$	2,481.5	$	7,232.8	$	20,402.6	$	3,871.1	$	2,416.0	$	15,624.8	$	10,010.3		$	52,324.8
Allocated stockholders’ equity is determined on the basis of an internal allocation formula that reflects the volume and risk components of the business and aligns with 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, 2006

	Unum US
	Group Income Protection		Group Life and Accidental Death & Dismemberment		Supplemental and Voluntary		Total Unum US		Unum UK		Colonial		Individual Income Protection- Closed Block		Corporate, Other, and Discontinued Operations			Consolidated
Assets
Investments	$	9,618.2	$	2,272.1	$	5,093.6	$	16,983.9	$	3,216.9	$	1,524.8	$	12,244.8	$	6,192.9		$	40,163.3
Deferred Acquisition Costs		571.9		273.1		1,360.2		2,205.2		165.1		612.8		—		—			2,983.1
Goodwill		2.5		—		187.5		190.0		14.1		—		—		—			204.1
All Other		968.4		104.6		448.7		1,521.7		508.1		217.4		3,364.7		3,860.9			9,472.8
Total Assets	$	11,161.0	$	2,649.8	$	7,090.0	$	20,900.8	$	3,904.2	$	2,355.0	$	15,609.5	$	10,053.8		$	52,823.3
Liabilities
Reserves and Policyholder Benefits	$	8,756.5	$	1,564.8	$	4,548.5	$	14,869.8	$	2,750.9	$	1,382.5	$	12,684.3	$	8,761.5		$	40,449.0
Debt		—		—		—		—		—		—		—		2,659.6			2,659.6
All Other		365.3		82.3		398.4		846.0		179.5		147.5		26.2		796.7			1,995.9
Total Liabilities		9,121.8		1,647.1		4,946.9		15,715.8		2,930.4		1,530.0		12,710.5		12,217.8			45,104.5
Other Allocated Stockholders’ Equity		2,012.3		973.6		1,834.5		4,820.4		899.6		791.5		2,640.0		(2,161.7	)		6,989.8
Unrealized Gain on Securities		26.9		29.1		308.6		364.6		74.2		33.5		259.0		(2.3	)		729.0
Total Allocated Stockholders’ Equity		2,039.2		1,002.7		2,143.1		5,185.0		973.8		825.0		2,899.0		(2,164.0	)		7,718.8
Total Liabilities and Allocated Stockholders’ Equity	$	11,161.0	$	2,649.8	$	7,090.0	$	20,900.8	$	3,904.2	$	2,355.0	$	15,609.5	$	10,053.8		$	52,823.3

4.3

Unum Group Financial Results by Segment

	Three Months Ended						Year Ended
	3/31/2007		3/31/2006		% Change		12/31/2006		12/31/2005		% Change
Premium Income
Unum US	$	1,244.9	$	1,303.8	(4.5	)%	$	5,196.0	$	5,229.0	(0.6	)%
Unum UK		222.3		191.4	16.1			842.8		785.3	7.3
Colonial		223.4		202.6	10.3			842.1		787.0	7.0
Individual Income Protection - Closed Block		252.3		271.0	(6.9	)		1,062.8		1,011.7	5.1
Other		1.1		1.2	(8.3	)		4.5		2.6	73.1
		1,944.0		1,970.0	(1.3	)		7,948.2		7,815.6	1.7
Net Investment Income
Unum US		276.9		257.7	7.5			1,063.1		998.2	6.5
Unum UK		45.8		38.0	20.5			174.6		154.2	13.2
Colonial		24.4		22.6	8.0			93.6		96.0	(2.5	)
Individual Income Protection - Closed Block		204.6		202.2	1.2			828.7		770.0	7.6
Other		28.1		28.7	(2.1	)		113.2		120.5	(6.1	)
Corporate		9.7		14.6	(33.6	)		47.4		49.4	(4.0	)
		589.5		563.8	4.6			2,320.6		2,188.3	6.0
Other Income
Unum US		34.7		25.4	36.6			108.5		108.6	(0.1	)
Unum UK		1.7		0.1	N.M.			0.1		6.1	(98.4	)
Colonial		0.3		0.3	—			1.1		4.4	(75.0	)
Individual Income Protection - Closed Block		25.3		26.3	(3.8	)		105.1		95.2	10.4
Other		8.2		8.3	(1.2	)		33.8		36.0	(6.1	)
Corporate		0.6		3.4	(82.4	)		15.7		11.8	33.1
		70.8		63.8	11.0			264.3		262.1	0.8
Total Operating Revenue
Unum US		1,556.5		1,586.9	(1.9	)		6,367.6		6,335.8	0.5
Unum UK		269.8		229.5	17.6			1,017.5		945.6	7.6
Colonial		248.1		225.5	10.0			936.8		887.4	5.6
Individual Income Protection - Closed Block		482.2		499.5	(3.5	)		1,996.6		1,876.9	6.4
Other		37.4		38.2	(2.1	)		151.5		159.1	(4.8	)
Corporate		10.3		18.0	(42.8	)		63.1		61.2	3.1
		2,604.3		2,597.6	0.3			10,533.1		10,266.0	2.6

5

Unum Group Financial Results by Segment

	Three Months Ended								Year Ended
	3/31/2007			3/31/2006			% Change		12/31/2006			12/31/2005			% Change
Benefits and Expenses
Unum US	$	1,414.1		$	1,558.4		(9.3	)%	$	6,271.9		$	5,948.1		5.4	%
Unum UK		194.7			175.1		11.2			759.7			757.9		0.2
Colonial		188.5			179.3		5.1			738.1			719.3		2.6
Individual Income Protection - Closed Block		459.7			484.8		(5.2	)		1,925.3			1,797.0		7.1
Other		33.8			33.4		1.2			127.1			129.1		(1.5	)
Corporate		49.9			61.5		(18.9	)		247.8			214.0		15.8
		2,340.7			2,492.5		(6.1	)		10,069.9			9,565.4		5.3
Income (Loss) from Continuing Operations Before Income Taxes and Net Realized Investment Gain (Loss)
Unum US		142.4			28.5		N.M.			95.7			387.7		(75.3	)
Unum UK		75.1			54.4		38.1			257.8			187.7		37.3
Colonial		59.6			46.2		29.0			198.7			168.1		18.2
Individual Income Protection - Closed Block		22.5			14.7		53.1			71.3			79.9		(10.8	)
Other		3.6			4.8		(25.0	)		24.4			30.0		(18.7	)
Corporate		(39.6	)		(43.5	)	9.0			(184.7	)		(152.8	)	(20.9	)
		263.6			105.1		150.8			463.2			700.6		(33.9	)
Income Taxes		89.0			35.2		152.8			61.1			192.3		(68.2	)
Income from Continuing Operations Before Net Realized Investment Gain (Loss)		174.6			69.9		149.8			402.1			508.3		(20.9	)
Net Realized Investment Gain (Loss)		(3.7	)		2.5		(248.0	)		2.2			(6.7	)	132.8
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)		(0.5	)		1.0		(150.0	)		0.7			(2.4	)	129.2
Income from Discontinued Operations, net of tax		6.9			2.0		245.0			7.4			9.6		(22.9	)
Net Income	$	178.3		$	73.4		142.9		$	411.0		$	513.6		(20.0	)
Note: See “Notes to Statistical Supplement” on page 16 for additional information.

5.1

Unum Group Quarterly Historical Financial Results by Segment

	3/31/07		12/31/06		9/30/06		6/30/06			3/31/06		12/31/05			9/30/05			6/30/05			3/31/05
Premium Income
Unum US	$	1,244.9	$	1,302.0	$	1,278.6	$	1,311.6		$	1,303.8	$	1,309.0		$	1,293.5		$	1,317.3		$	1,309.2
Unum UK		222.3		231.0		219.7		200.7			191.4		198.2			204.0			193.1			190.0
Colonial		223.4		217.2		212.8		209.5			202.6		200.5			197.4			195.6			193.5
Individual Income Protection - Closed Block		252.3		269.8		257.8		264.2			271.0		279.3			257.6			232.8			242.0
Other		1.1		2.0		0.1		1.2			1.2		1.4			(0.3	)		1.2			0.3
		1,944.0		2,022.0		1,969.0		1,987.2			1,970.0		1,988.4			1,952.2			1,940.0			1,935.0
Net Investment Income
Unum US		276.9		284.6		261.9		258.9			257.7		255.4			248.4			250.4			244.0
Unum UK		45.8		50.9		45.8		39.9			38.0		37.7			39.2			39.6			37.7
Colonial		24.4		24.0		23.6		23.4			22.6		24.3			23.4			23.3			25.0
Individual Income Protection - Closed Block		204.6		205.5		207.0		214.0			202.2		207.5			192.9			189.7			179.9
Other		28.1		28.1		28.0		28.4			28.7		29.1			29.5			32.8			29.1
Corporate		9.7		8.3		12.5		12.0			14.6		10.9			13.8			12.4			12.3
		589.5		601.4		578.8		576.6			563.8		564.9			547.2			548.2			528.0
Other Income
Unum US		34.7		27.7		27.3		28.1			25.4		28.6			27.8			25.2			27.0
Unum UK		1.7		0.1		—		(0.1	)		0.1		—			5.7			(0.1	)		0.5
Colonial		0.3		0.2		0.2		0.4			0.3		0.9			1.3			1.0			1.2
Individual Income Protection - Closed Block		25.3		29.4		25.5		23.9			26.3		25.0			25.7			19.8			24.7
Other		8.2		8.8		8.3		8.4			8.3		10.6			8.1			8.0			9.3
Corporate		0.6		5.8		3.5		3.0			3.4		(0.6	)		3.1			4.2			5.1
		70.8		72.0		64.8		63.7			63.8		64.5			71.7			58.1			67.8
Total Operating Revenue
Unum US		1,556.5		1,614.3		1,567.8		1,598.6			1,586.9		1,593.0			1,569.7			1,592.9			1,580.2
Unum UK		269.8		282.0		265.5		240.5			229.5		235.9			248.9			232.6			228.2
Colonial		248.1		241.4		236.6		233.3			225.5		225.7			222.1			219.9			219.7
Individual Income Protection - Closed Block		482.2		504.7		490.3		502.1			499.5		511.8			476.2			442.3			446.6
Other		37.4		38.9		36.4		38.0			38.2		41.1			37.3			42.0			38.7
Corporate		10.3		14.1		16.0		15.0			18.0		10.3			16.9			16.6			17.4
		2,604.3		2,695.4		2,612.6		2,627.5			2,597.6		2,617.8			2,571.1			2,546.3			2,530.8

6

Unum Group Quarterly Historical Financial Results by Segment

	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			12/31/05			9/30/05			6/30/05			3/31/05
Benefits and Expenses
Unum US	$	1,414.1		$	1,478.4		$	1,741.0		$	1,494.1		$	1,558.4		$	1,489.1		$	1,497.8		$	1,481.5		$	1,479.7
Unum UK		194.7			200.2			200.0			184.4			175.1			186.6			199.1			191.3			180.9
Colonial		188.5			190.9			184.5			183.4			179.3			187.0			180.1			176.3			175.9
Individual Income Protection - Closed Block		459.7			476.0			495.6			468.9			484.8			478.1			480.8			414.6			423.5
Other		33.8			32.5			28.6			32.6			33.4			36.4			28.6			31.5			32.6
Corporate		49.9			52.5			65.1			68.7			61.5			53.3			49.9			54.2			56.6
		2,340.7			2,430.5			2,714.8			2,432.1			2,492.5			2,430.5			2,436.3			2,349.4			2,349.2
Income (Loss) from Continuing Operations Before Income Taxes and Net Realized Investment Gain (Loss)
Unum US		142.4			135.9			(173.2	)		104.5			28.5			103.9			71.9			111.4			100.5
Unum UK		75.1			81.8			65.5			56.1			54.4			49.3			49.8			41.3			47.3
Colonial		59.6			50.5			52.1			49.9			46.2			38.7			42.0			43.6			43.8
Individual Income Protection - Closed Block		22.5			28.7			(5.3	)		33.2			14.7			33.7			(4.6	)		27.7			23.1
Other		3.6			6.4			7.8			5.4			4.8			4.7			8.7			10.5			6.1
Corporate		(39.6	)		(38.4	)		(49.1	)		(53.7	)		(43.5	)		(43.0	)		(33.0	)		(37.6	)		(39.2	)
		263.6			264.9			(102.2	)		195.4			105.1			187.3			134.8			196.9			181.6
Income Taxes (Benefit)		89.0			(8.8	)		(33.8	)		68.5			35.2			54.0			38.8			70.2			29.3
Income (Loss) from Continuing Operations Before Net Realized
Investment Gain (Loss)		174.6			273.7			(68.4	)		126.9			69.9			133.3			96.0			126.7			152.3
Net Realized Investment Gain (Loss)		(3.7	)		0.7			4.8			(5.8	)		2.5			2.4			(71.4	)		65.5			(3.2	)
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)		(0.5	)		0.2			1.7			(2.2	)		1.0			0.9			(25.1	)		22.9			(1.1	)
Income from Discontinued Operations, net of tax		6.9			1.9			1.6			1.9			2.0			2.7			2.9			2.0			2.0
Net Income (Loss)	$	178.3		$	276.1		$	(63.7	)	$	125.2		$	73.4		$	137.5		$	52.6		$	171.3		$	152.2
Per Common Share - Assuming Dilution
Income (Loss) from Continuing Operations	$	0.49		$	0.79		$	(0.19	)	$	0.37		$	0.22		$	0.42		$	0.16		$	0.55		$	0.49
Income from Discontinued Operations, net of tax		0.02			0.01			—			0.01			0.01			0.01			0.01			—			—
Net Income (Loss)	$	0.51		$	0.80		$	(0.19	)	$	0.38		$	0.23		$	0.43		$	0.17		$	0.55		$	0.49
Note: See “Notes to Statistical Supplement” on page 16 for additional information.

6.1

Unum Group Financial Results for Unum US Segment

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Premium Income	$	1,244.9		$	1,303.8		$	5,196.0		$	5,229.0		$	5,421.6
Net Investment Income		276.9			257.7			1,063.1			998.2			965.8
Other Income		34.7			25.4			108.5			108.6			89.8
Total Operating Revenue		1556.5			1,586.9			6,367.6			6,335.8			6,477.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		1,046.0			1,171.1			4,752.1			4,419.3			4,614.4
Commissions		129.5			134.4			505.2			501.6			538.3
Deferral of Acquisition Costs		(76.5	)		(81.6	)		(306.2	)		(311.9	)		(346.0	)
Amortization of Deferred Acquisition Costs		66.4			79.0			302.2			306.9			286.3
Other Expenses		248.7			255.5			1,018.6			1,032.2			1,048.7
Total Benefits and Expenses		1,414.1			1,558.4			6,271.9			5,948.1			6,141.7
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	142.4		$	28.5		$	95.7		$	387.7		$	335.5
Operating Ratios
Benefit Ratio		84.0	%		89.8	%		91.5	%		84.5	%		85.1	%
Other Expense Ratio		20.0	%		19.6	%		19.6	%		19.7	%		19.3	%
Before-tax Profit Margin		11.4	%		2.2	%		1.8	%		7.4	%		6.2	%
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	142.4		$	28.5		$	95.7		$	387.7		$	335.5
Settlement Agreements Claim Reassessment - Reserve Charge		—			(72.8	)		(349.2	)		(29.6	)		(80.8	)
Settlement Agreements Claim Reassessment - Other Expense Charge		—			—			(15.0	)		(11.1	)		(37.6	)
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	142.4		$	101.3		$	459.9		$	428.4		$	453.9
Operating Ratios, as Adjusted
Benefit Ratio		84.0	%		84.2	%		84.7	%		83.9	%		83.6	%
Other Expense Ratio		20.0	%		19.6	%		19.3	%		19.5	%		18.6	%
Before-tax Profit Margin		11.4	%		7.8	%		8.9	%		8.2	%		8.4	%
See “Notes to Statistical Supplement” on page 16 for additional information.

7

Unum Group Financial Results for Unum US Group Income Protection

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Premium Income
Group Long-term Income Protection	$	471.4		$	485.3		$	1,953.3		$	1,961.6		$	2,028.6
Group Short-term Income Protection		118.7			134.5			530.2			566.3			616.1
Total Premium Income		590.1			619.8			2,483.5			2,527.9			2,644.7
Net Investment Income		155.3			153.3			621.9			605.7			595.8
Other Income		24.7			19.5			82.3			80.3			69.6
Total Operating Revenue		770.1			792.6			3,187.7			3,213.9			3,310.1
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		551.1			664.4			2,702.5			2,397.7			2,533.1
Commissions		45.4			46.6			175.8			175.1			199.0
Deferral of Acquisition Costs		(15.5	)		(17.8	)		(64.5	)		(64.6	)		(77.1	)
Amortization of Deferred Acquisition Costs		16.6			22.0			86.4			92.2			93.5
Other Expenses		143.8			149.0			588.6			582.5			619.6
Total Benefits and Expenses		741.4			864.2			3,488.8			3,182.9			3,368.1
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses	$	28.7		$	(71.6	)	$	(301.1	)	$	31.0		$	(58.0	)
Operating Ratios
Benefit Ratio		93.4	%		107.2	%		108.8	%		94.8	%		95.8	%
Other Expense Ratio		24.4	%		24.0	%		23.7	%		23.0	%		23.4	%
Before-tax Profit (Loss) Margin		4.9	%		(11.6	)%		(12.1	)%		1.2	%		(2.2	)%
Premium Persistency:
Group Long-term Income Protection		84.6	%		86.6	%		87.8	%		84.8	%		84.8	%
Group Short-term Income Protection		75.1	%		81.9	%		85.6	%		79.6	%		80.6	%
Case Persistency:
Group Long-term Income Protection		87.6	%		87.5	%		87.4	%		87.2	%		86.3	%
Group Short-term Income Protection		85.8	%		85.7	%		86.2	%		85.6	%		84.3	%

7.1

Unum Group Financial Results for Unum US Group Income Protection - Continued

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	28.7		$	(71.6	)	$	(301.1	)	$	31.0		$	(58.0	)
Settlement Agreements Claim Reassessment - Reserve Charge		—			(72.8	)		(349.2	)		(27.3	)		(80.2	)
Settlement Agreements Claim Reassessment - Other Expense Charge		—			—			(15.0	)		(10.1	)		(36.5	)
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	28.7		$	1.2		$	63.1		$	68.4		$	58.7
Operating Ratios, as Adjusted
Benefit Ratio		93.4	%		95.5	%		94.8	%		93.8	%		92.7	%
Other Expense Ratio		24.4	%		24.0	%		23.1	%		22.6	%		22.0	%
Before-tax Profit Margin		4.9	%		0.2	%		2.5	%		2.7	%		2.2	%
See “Notes to Statistical Supplement” on page 16 for additional information.

7.2

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

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Premium Income
Group Life	$	280.8		$	320.1		$	1,248.1		$	1,306.8		$	1,441.0
Accidental Death & Dismemberment		32.4			38.7			151.6			156.4			182.4
Total Premium Income		313.2			358.8			1,399.7			1,463.2			1,623.4
Net Investment Income		34.4			35.1			141.3			151.9			147.9
Other Income (Loss)		0.6			—			—			2.0			(0.6	)
Total Operating Revenue		348.2			393.9			1,541.0			1,617.1			1,770.7
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		235.4			274.8			1,067.3			1,111.9			1,244.3
Commissions		22.6			23.0			90.1			97.8			106.2
Deferral of Acquisition Costs		(9.1	)		(9.8	)		(37.7	)		(42.7	)		(47.0	)
Amortization of Deferred Acquisition Costs		9.3			16.4			65.0			73.0			67.0
Other Expenses		40.6			45.6			178.3			188.3			186.8
Total Benefits and Expenses		298.8			350.0			1,363.0			1,428.3			1,557.3
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	49.4		$	43.9		$	178.0		$	188.8		$	213.4
Operating Ratios
Benefit Ratio		75.2	%		76.6	%		76.3	%		76.0	%		76.6	%
Other Expense Ratio		13.0	%		12.7	%		12.7	%		12.9	%		11.5	%
Before-tax Profit Margin		15.8	%		12.2	%		12.7	%		12.9	%		13.1	%
Premium Persistency:
Group Life		78.1	%		79.1	%		81.2	%		78.3	%		84.0	%
Accidental Death & Dismemberment		78.7	%		80.3	%		82.8	%		76.9	%		80.3	%
Case Persistency:
Group Life		85.7	%		86.4	%		86.9	%		86.3	%		84.7	%
Accidental Death & Dismemberment		86.5	%		86.8	%		87.0	%		86.4	%		84.8	%

7.3

Unum Group Financial Results for Unum US Supplemental and Voluntary

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Premium Income
Individual Income Protection - Recently Issued	$	113.7		$	110.2		$	438.5		$	425.1		$	415.6
Long-term Care		128.7			120.6			492.4			473.2			444.5
Voluntary Workplace Benefits		99.2			94.4			381.9			339.6			293.4
Total Premium Income		341.6			325.2			1,312.8			1,237.9			1,153.5
Net Investment Income		87.2			69.3			299.9			240.6			222.1
Other Income		9.4			5.9			26.2			26.3			20.8
Total Operating Revenue		438.2			400.4			1,638.9			1,504.8			1,396.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		259.5			231.9			982.3			909.7			837.0
Commissions		61.5			64.8			239.3			228.7			233.1
Deferral of Acquisition Costs		(51.9	)		(54.0	)		(204.0	)		(204.6	)		(221.9	)
Amortization of Deferred Acquisition Costs		40.5			40.6			150.8			141.7			125.8
Other Expenses		64.3			60.9			251.7			261.4			242.3
Total Benefits and Expenses		373.9			344.2			1,420.1			1,336.9			1,216.3
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	64.3		$	56.2		$	218.8		$	167.9		$	180.1
Operating Ratios
Benefit Ratios
Individual Income Protection - Recently Issued		57.2	%		55.6	%		58.0	%		57.5	%		57.7	%
Long-term Care		104.7	%		93.0	%		99.2	%		93.0	%		88.8	%
Voluntary Workplace Benefits		60.3	%		61.9	%		62.7	%		66.3	%		69.0	%
Other Expense Ratio		18.8	%		18.7	%		19.2	%		21.1	%		21.0	%
Before-tax Profit Margin		18.8	%		17.3	%		16.7	%		13.6	%		15.6	%
Interest Adjusted Loss Ratios
Individual Income Protection - Recently Issued		42.1	%		41.8	%		43.5	%		44.4	%		46.1	%
Long-term Care		76.6	%		68.6	%		73.1	%		70.9	%		70.8	%

7.4

Unum Group Financial Results for Unum US Supplemental and Voluntary - Continued

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Premium Persistency:
Individual Income Protection - Recently Issued		90.8	%		89.0	%		90.5	%		89.6	%		90.7	%
Long-term Care		95.0	%		95.5	%		95.3	%		95.8	%		95.5	%
Voluntary Workplace Benefits		78.9	%		81.4	%		80.9	%		81.1	%		81.0	%
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	64.3		$	56.2		$	218.8		$	167.9		$	180.1
Settlement Agreements Claim Reassessment - Reserve Charge		—			—			—			(2.3	)		(0.6	)
Settlement Agreements Claim Reassessment - Other Expense Charge		—			—			—			(1.0	)		(1.1	)
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	64.3		$	56.2		$	218.8		$	171.2		$	181.8
Operating Ratios, as Adjusted
Benefit Ratios
Individual Income Protection - Recently Issued		57.2	%		55.6	%		58.0	%		57.0	%		57.6	%
Long-term Care		104.7	%		93.0	%		99.2	%		93.0	%		88.8	%
Voluntary Workplace Benefits		60.3	%		61.9	%		62.7	%		66.3	%		69.0	%
Other Expense Ratio		18.8	%		18.7	%		19.2	%		21.0	%		20.9	%
Before-tax Profit Margin		18.8	%		17.3	%		16.7	%		13.8	%		15.8	%
Interest Adjusted Loss Ratios, as Adjusted
Individual Income Protection - Recently Issued		42.1	%		41.8	%		43.5	%		43.8	%		46.0	%
Long-term Care		76.6	%		68.6	%		73.1	%		70.9	%		70.8	%

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

7.5

Unum Group Financial Results for Unum UK Segment

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Premium Income
Group Long-term Income Protection	$	174.6		$	147.3		$	638.9		$	582.9		$	501.8
Group Life		38.7			36.7			171.0			164.1			117.9
Individual Income Protection		9.0			7.4			32.9			38.3			39.4
Total Premium Income		222.3			191.4			842.8			785.3			659.1
Net Investment Income		45.8			38.0			174.6			154.2			139.6
Other Income		1.7			0.1			0.1			6.1			3.1
Total Operating Revenue		269.8			229.5			1,017.5			945.6			801.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		135.8			129.1			553.5			545.8			464.5
Commissions		15.4			11.9			49.7			56.4			48.9
Deferral of Acquisition Costs		(9.3	)		(8.2	)		(34.4	)		(34.1	)		(37.7	)
Amortization of Deferred Acquisition Costs		11.9			5.3			32.0			21.6			19.2
Other Expenses		40.9			37.0			158.9			168.2			155.6
Total Benefits and Expenses		194.7			175.1			759.7			757.9			650.5
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	75.1		$	54.4		$	257.8		$	187.7		$	151.3
Operating Ratios
Benefit Ratio		61.1	%		67.5	%		65.7	%		69.5	%		70.5	%
Other Expense Ratio		18.4	%		19.3	%		18.9	%		21.4	%		23.6	%
Before-tax Profit Margin		33.8	%		28.4	%		30.6	%		23.9	%		23.0	%
Premium Persistency:
Group Long-term Income Protection		89.6	%		91.2	%		90.4	%		94.2	%		92.1	%
Group Life		72.6	%		82.0	%		69.1	%		86.3	%		83.0	%
Individual Income Protection		90.1	%		86.6	%		88.2	%		88.4	%		86.7	%
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	75.1		$	54.4		$	257.8		$	187.7		$	151.3
Gain on Sale of Netherlands Branch		—			—			—			5.7			—
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	75.1		$	54.4		$	257.8		$	182.0		$	151.3
Operating Ratio, as Adjusted
Before-tax Profit Margin		33.8	%		28.4	%		30.6	%		23.2	%		23.0	%

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

8

Unum Group Financial Results for Colonial Segment

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Premium Income
Income Protection	$	139.7		$	129.8		$	533.3		$	508.9		$	486.2
Life		35.6			30.0			130.5			114.0			106.9
Cancer and Critical Illness		48.1			42.8			178.3			164.1			147.9
Total Premium Income		223.4			202.6			842.1			787.0			741.0
Net Investment Income		24.4			22.6			93.6			96.0			94.5
Other Income		0.3			0.3			1.1			4.4			2.3
Total Operating Revenue		248.1			225.5			936.8			887.4			837.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		110.0			105.5			441.4			433.2			408.3
Commissions		49.4			43.7			184.9			170.7			173.9
Deferral of Acquisition Costs		(52.3	)		(46.1	)		(187.6	)		(173.4	)		(173.7	)
Amortization of Deferred Acquisition Costs		38.3			35.5			144.4			134.7			131.2
Other Expenses		43.1			40.7			155.0			154.1			142.5
Total Benefits and Expenses		188.5			179.3			738.1			719.3			682.2
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	59.6		$	46.2		$	198.7		$	168.1		$	155.6
Operating Ratios
Benefit Ratio		49.2	%		52.1	%		52.4	%		55.0	%		55.1	%
Other Expense Ratio		19.3	%		20.1	%		18.4	%		19.6	%		19.2	%
Before-tax Profit Margin		26.7	%		22.8	%		23.6	%		21.4	%		21.0	%
Premium Persistency:
Income Protection		75.6	%		74.4	%		74.9	%		75.3	%		75.6	%
Life		83.2	%		84.2	%		84.2	%		84.1	%		84.1	%
Cancer and Critical Illness		83.6	%		82.0	%		82.3	%		83.2	%		82.6	%

9

Unum Group Financial Results for Individual Income Protection - Closed Block Segment

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Premium Income	$	252.3		$	271.0		$	1,062.8		$	1,011.7		$	986.6
Net Investment Income		204.6			202.2			828.7			770.0			799.1
Other Income		25.3			26.3			105.1			95.2			100.3
Total Operating Revenue		482.2			499.5			1,996.6			1,876.9			1,886.0
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		405.9			430.4			1,709.7			1,562.7			1,618.9
Commissions		18.0			20.5			76.2			74.9			76.3
Impairment of Intangible Assets		—			—			—			—			856.4
Other Expenses		35.8			33.9			139.4			159.4			157.2
Total Benefits and Expenses		459.7			484.8			1,925.3			1,797.0			2,708.8
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses	$	22.5		$	14.7		$	71.3		$	79.9		$	(822.8	)
Operating Ratios
Interest Adjusted Loss Ratio		93.9	%		96.5	%		97.3	%		89.3	%		93.4	%
Premium Persistency		94.5	%		94.3	%		94.4	%		94.5	%		94.5	%
Operating Income (Loss) Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	22.5		$	14.7		$	71.3		$	79.9		$	(822.8	)
Settlement Agreements Claim Reassessment - Reserve Charge		—			(13.2	)		(47.2	)		(23.1	)		(3.7	)
Settlement Agreements Claim Reassessment - Other Expense Charge		—			—			—			(11.2	)		(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	$	22.5		$	27.9		$	118.5		$	114.2		$	152.8
Interest Adjusted Loss Ratio, as Adjusted		93.9	%		91.6	%		92.9	%		87.3	%		87.5	%

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

10

Unum Group Financial Results for Other Segment

	Three Months Ended				Year Ended
	3/31/2007		3/31/2006		12/31/2006		12/31/2005		12/31/2004
Operating Revenue
Premium Income	$	1.1	$	1.2	$	4.5	$	2.6	$	31.3
Net Investment Income		28.1		28.7		113.2		120.5		127.3
Other Income		8.2		8.3		33.8		36.0		31.2
Total Operating Revenue		37.4		38.2		151.5		159.1		189.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits		31.6		31.4		120.5		122.2		142.3
Commissions		0.7		0.4		3.0		1.1		4.9
Deferral of Acquisition Costs		—		—		—		—		0.1
Amortization of Deferred Acquisition Costs		—		—		—		0.5		—
Other Expenses		1.5		1.6		3.6		5.3		13.3
Total Benefits and Expenses		33.8		33.4		127.1		129.1		160.6
Operating Income Before Income Taxes and Net Realized Investment Gains and Losses	$	3.6	$	4.8	$	24.4	$	30.0	$	29.2

11

Unum Group Financial Results for Corporate Segment

	Three Months Ended						Year Ended
	3/31/2007			3/31/2006			12/31/2006			12/31/2005			12/31/2004
Operating Revenue
Net Investment Income	$	9.7		$	14.6		$	47.4		$	49.4		$	32.4
Other Income		0.6			3.4			15.7			11.8			33.6
Total Operating Revenue		10.3			18.0			63.1			61.2			66.0
Benefits and Expenses
Interest and Debt Expense - Non-recourse Debt		2.0			—			1.3			—			—
Interest and Debt Expense - All Other Debt		43.9			53.1			190.5			208.0			207.1
Cost Related to Early Retirement of Debt		2.4			5.3			25.8			—			—
Unallocated Expenses		1.6			3.1			30.2			6.0			12.6
Total Benefits and Expenses		49.9			61.5			247.8			214.0			219.7
Operating Loss Before Income Taxes and Net Realized Investment Gains and Losses	$	(39.6	)	$	(43.5	)	$	(184.7	)	$	(152.8	)	$	(153.7	)
Operating Loss Before Income Taxes and Net Realized Investment Gains and Losses, as Reported	$	(39.6	)	$	(43.5	)	$	(184.7	)	$	(152.8	)	$	(153.7	)
Broker Compensation Settlement		—			—			(18.5	)		—			—
Interest on Federal Income Tax Refund		—			—			2.6			—			—
Cost Related to Early Retirement of Debt		—			(5.3	)		(25.8	)		—			—
Operating Loss Before Income Taxes and Net Realized Investment Gains and Losses, as Adjusted	$	(39.6	)	$	(38.2	)	$	(143.0	)	$	(152.8	)	$	(153.7	)

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

12

Unum Group Reserves

	March 31, 2007
	Gross												Total
	Policy				Claim Reserves								Reinsurance
	Reserves		%		Incurred		IBNR		%		Total		Ceded		Total Net
Group Income Protection	$	—	—	%	$	7,615.4	$	706.5	34.2	%	$	8,321.9	$	100.2	$	8,221.7
Group Life and Accidental Death & Dismemberment		62.8	0.5			736.3		194.0	3.8			993.1		3.1		990.0
Individual Income Protection - Recently Issued		439.4	3.4			746.1		70.9	3.4			1,256.4		77.3		1,179.1
Long-term Care		2,168.3	16.9			203.8		31.7	1.0			2,403.8		54.8		2,349.0
Voluntary Workplace Benefits		802.9	6.3			18.8		38.2	0.2			859.9		13.9		846.0
Unum US Segment		3,473.4	27.1			9,320.4		1,041.3	42.6			13,835.1		249.3		13,585.8
Unum UK Segment		30.4	0.2			2,276.2		287.8	10.5			2,594.4		135.2		2,459.2
Colonial Segment		1,038.1	8.1			234.4		103.3	1.4			1,375.8		35.4		1,340.4
Individual Income Protection - Closed Block Segment		1,754.8	13.7			9,820.9		433.1	42.1			12,008.8		1,517.9		10,490.9
Other Segment		6,524.5	50.9			544.6		284.0	3.4			7,353.1		5,756.2		1,596.9
Subtotal, Excluding Unrealized Adjustment	$	12,821.2	100.0	%	$	22,196.5	$	2,149.5	100.0	%	$	37,167.2	$	7,694.0		29,473.2
Unrealized Adjustment to Reserves for Unrealized
Investment Gains																956.4
Consolidated															$	30,429.6

The decrease in the Unum US segment and Individual Income Protection - Closed Block segment IBNR from December 31, 2006 is due to the release of reserves to cover costs for the multistate market conduct examination settlement agreements and the California settlement agreement and related matters and a slight decline in insured lives in the group income protection, group life, and accidental death and dismemberment lines of business.

The increase in Unum US Policy and Claim Reserves Incurred from December 31, 2006 is due to growth in the disabled life reserves in the Unum US group income protection line of business and growth in the active life reserves for the Unum US long-term care and individual income protection - recently issued lines of business.

13

Unum Group Reserves

	December 31, 2006
	Gross												Total Reinsurance Ceded		Total Net
	Policy Reserves		%		Claim Reserves				%		Total
					Incurred		IBNR
Group Income Protection	$	—	—	%	$	7,563.0	$	790.3	34.3	%	$	8,353.3	$	101.5	$	8,251.8
Group Life and Accidental Death & Dismemberment		63.1	0.5			736.5		202.2	3.9			1,001.8		2.7		999.1
Individual Income Protection - Recently Issued		431.8	3.4			718.9		71.5	3.3			1,222.2		76.7		1,145.5
Long-term Care		2,067.2	16.4			195.0		31.6	0.9			2,293.8		57.1		2,236.7
Voluntary Workplace Benefits		787.9	6.2			22.3		36.3	0.2			846.5		13.3		833.2
Unum US Segment		3,350.0	26.5			9,235.7		1,131.9	42.6			13,717.6		251.3		13,466.3
Unum UK Segment		28.9	0.2			2,252.8		286.4	10.4			2,568.1		142.4		2,425.7
Colonial Segment		1,021.3	8.1			234.5		100.8	1.4			1,356.6		36.7		1,319.9
Individual Income Protection - Closed Block Segment		1,777.8	14.1			9,794.9		443.9	42.1			12,016.6		1,498.7		10,517.9
Other Segment		6,444.3	51.1			561.4		282.1	3.5			7,287.8		5,686.4		1,601.4
Subtotal, Excluding Unrealized Adjustment	$	12,622.3	100.0	%	$	22,079.3	$	2,245.1	100.0	%	$	36,946.7	$	7,615.5		29,331.2
Unrealized Adjustment to Reserves for Unrealized
Investment Gains																963.1
Consolidated															$	30,294.3

13.1

Unum Group Investment Fact Sheet at March 31, 2007

	3/31/2007
Bonds (Fair Value)
Public	$	21,336.7			61.3	%
Mortgage-backed Securities		4,253.1			12.2
Private Placements		3,894.1			11.2
High Yield		2,103.1			6.0
Government Securities		3,272.9			9.4
Municipal Securities		46.3			0.1
Derivatives Hedging Available-for-Sale		(66.3	)		(0.2	)
Total (1)	$	34,839.9			100.0	%
	Book Value			Fair Value
Quality Ratings of Bonds
Aaa		23.7	%		23.4	%
Aa		8.0			7.8
A		25.2			25.4
Baa		36.9			37.4
Below Baa		6.2			6.0
Total		100.0	%		100.0	%
	3/31/07			12/31/06
Selected Statistics
Portfolio Yield (2)		6.72	%		6.73	%
Average Duration		8.74			8.83
Average Credit Quality		A			A
Schedule BA and Non-Current
Total Non-Current Investments	$	14.9		$	12.5
Total Schedule BA Assets	$	103.9		$	108.4
(1)    Excludes DIG Issue B36 embedded derivatives, which at March 31, 2007 had a fair value of $(14.9) million.
(2)    Bond equivalent yield is a book value and duration weighted average of the yield on the fixed income securities in the portfolio.

14

Unum Group Investment Fact Sheet at March 31, 2007

Fixed Maturity Bonds - By Industry Classification - Unrealized Gain/Loss

Classification	Fair Value (1)			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	$	2,335.0		$	92.8		$	792.3		$	26.6	$	1,542.7	$	119.4
Canadian		268.1			55.7			—			—		268.1		55.7
Capital Goods		2,636.1			164.5			749.2			27.4		1,886.9		191.9
Communications		2,500.1			142.2			841.6			43.0		1,658.5		185.2
Consumer Cyclical		1,456.5			37.4			562.6			29.6		893.9		67.0
Consumer Non-Cyclical		4,082.6			114.8			1,691.7			71.6		2,390.9		186.4
Derivatives Hedging Available- for-Sale		(66.3	)		(68.3	)		(165.6	)		165.6		99.3		97.3
Energy (Oil & Gas)		2,267.1			226.1			328.4			13.1		1,938.7		239.2
Financial Institutions		3,642.9			(0.6	)		2,454.6			84.0		1,188.3		83.4
Mortgage/Asset-Backed		4,253.1			223.9			754.1			9.9		3,499.0		233.8
Sovereigns		885.0			29.3			614.8			19.7		270.2		49.0
Technology		510.0			20.6			164.0			6.8		346.0		27.4
Transportation		970.9			80.6			201.5			5.4		769.4		86.0
U.S. Government Agencies and Municipalities		2,476.0			42.8			1,374.4			73.8		1,101.6		116.6
Utilities		6,622.8			312.8			2,383.0			87.2		4,239.8		400.0
Total	$	34,839.9		$	1,474.6		$	12,746.6		$	663.7	$	22,093.3	$	2,138.3

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	$	1,311.0	$	10.1	$	81.8	$	1.7
91 through 180 days		1,398.7		21.8		37.8		1.1
181 through 270 days		267.8		4.9		—		—
271 days to 1 year		565.1		12.4		44.9		1.0
Greater than 1 year		8,555.3		566.3		484.2		44.4
Total	$	12,097.9	$	615.5	$	648.7	$	48.2
(1)    Excludes DIG Issue B36 embedded derivatives, which at March 31, 2007 had a fair value of $(14.9) million.

14.1

Unum Group Statutory Capital and Surplus

	As of March 31, 2007						As of December 31, 2006
	Capital and Surplus		AVR		Capital and Surplus + AVR		Capital and Surplus + AVR
Provident Life and Accident	$	1,112.1	$	70.6	$	1,182.7	$	1,189.8
Unum Life of America		1,608.1		109.3		1,717.4		1,682.4
Paul Revere Life (1)		1,044.4		39.2		1,083.6		1,070.5
Colonial Life & Accident		370.8		13.3		384.1		382.8
Provident Life and Casualty		103.8		2.1		105.9		102.2
First Unum Life		185.8		6.6		192.4		188.8
Paul Revere Variable (1)		110.7		1.0		111.7		110.4
(1)    Capital and Surplus of Paul Revere Variable is included in Paul Revere Life

15

Unum Group Statutory Operating Results

	Three Months Ended March 31
	Net Gain from Operations After Tax									Net Realized Investment Gains (Losses) After Tax and Transfers to IMR						Net Income (Loss)
	2007		2006													2007		2006
	Total		Before Infrequent or Unusual Items		Claim Reassessment Charge			Total		2007			2006			Total		Before Infrequent or Unusual Items		Claim Reassessment Charge			Total
Provident Life and Accident	$	28.8	$	22.5	$	(2.1	)	$	20.4	$	(3.2	)	$	(1.2	)	$	25.6	$	21.3	$	(2.1	)	$	19.2
Unum Life of America		57.3		65.2		(60.3	)		4.9		(48.8	)		(5.2	)		8.5		60.0		(60.3	)		(0.3	)
Paul Revere Life		25.8		25.0		(3.2	)		21.8		2.5			4.5			28.3		29.5		(3.2	)		26.3
Colonial Life & Accident		20.4		17.6		—			17.6		(0.1	)		0.7			20.3		18.3		—			18.3
Provident Life and Casualty		4.0		3.1		—			3.1		—			(1.1	)		4.0		2.0		—			2.0
First Unum Life		5.3		4.8		(2.1	)		2.7		(0.2	)		(0.4	)		5.1		4.4		(2.1	)		2.3
Paul Revere Variable		1.8		2.0		—			2.0		—			—			1.8		2.0		—			2.0
Total	$	143.4	$	140.2	$	(67.7	)	$	72.5	$	(49.8	)	$	(2.7	)	$	93.6	$	137.5	$	(67.7	)	$	69.8
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

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

	2007			2006			2005			2004
Reserve Balance from Prior Year End	$	6,686.6		$	5,192.8		$	5,146.1		$	4,983.5
Reserves Ceded Each January 1 for Prior Year Incurrals		—			—			(453.4	)		(429.0	)
Reinsurance Recapture		—			891.4			—			—
Other Adjustments to Beginning Balance (see Schedule H)		20.3			15.9			(5.7	)		17.6
Reserve Balance January 1 (a)		6,706.9			6,100.1			4,687.0			4,572.1
Paid on Prior Year Claims		(437.4	)		(395.9	)		(356.0	)		(362.4	)
Interest Earned on Reserves		108.3			102.1			78.7			77.7
Incurred on Prior Year Claims		8.7			45.6			49.8			(16.2	)
Reserve Charges Incurred for Settlement Agreements		—			68.4			—			—
Reserve Balance March 31	$	6,386.5		$	5,920.3		$	4,459.5		$	4,271.2
Reserve Balance March 31				$	5,920.3		$	4,459.5		$	4,271.2
Paid on Prior Year Claims					(348.3	)		(298.7	)		(291.5	)
Interest Earned on Reserves					99.3			74.6			73.3
Incurred on Prior Year Claims					51.4			1.0			(24.0	)
Reserve Balance June 30				$	5,722.7		$	4,236.4		$	4,029.0
Reserve Balance June 30				$	5,722.7		$	4,236.4		$	4,029.0
Paid on Prior Year Claims					(350.6	)		(261.5	)		(260.7	)
Interest Earned on Reserves					97.6			71.5			69.4
Incurred on Prior Year Claims					(11.9	)		(17.1	)		(32.7	)
Reserve Charges Incurred for Settlement Agreements					246.0			13.7			—
Reserve Balance September 30				$	5,703.8		$	4,043.0		$	3,805.0
Reserve Balance September 30				$	5,703.8		$	4,043.0		$	3,805.0
Paid on Prior Year Claims					(314.5	)		(229.8	)		(223.2	)
Interest Earned on Reserves					94.5			68.9			68.9
Incurred on Prior Year Claims					2.7			0.3			(31.3	)
Reserve Charges Incurred for Settlement Agreements					—			—			71.1
Reserve Balance December 31 on Prior Year Claims					5,486.5			3,882.4			3,690.5
Reserve Balance December 31 on Current Year Claims					1,200.1			1,310.4			1,455.6
Reserve Balance December 31 on Total Claims Incurred (b)				$	6,686.6		$	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

15.2

Reconciliation to Unum Life Insurance Company of America - Statutory Basis

Schedule H Part 3 for Group Accident and Health

	2006		2005		2004
Paid on Prior Year Existing Claims - Full Year	$	1,409.2	$	1,146.0	$	1,137.8
(balances to Schedule H Part 3 Line 1.1 Column 2)
Incurred on Prior Year Claims - Full Year	$	402.1	$	47.7	$	(33.1	)
Interest Earned on Reserves - Full Year		393.5		293.7		289.3
Incurred on Prior Year Claims - Full Year, Excluding Interest Earned	$	795.6	$	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 Unum US segment as well as the reinsurance pools reported in our Other segment.

15.3

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 (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.

2007 Significant Transactions and Events

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 issued $300.0 million of 5.859% senior notes due May 15, 2009. We participated in the remarketing of the units and purchased $150.0 million of the senior notes which were subsequently retired. The associated write-off of deferred debt costs decreased first quarter 2007 income by $2.4 million before tax, or $1.6 million after tax.

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.

(continued on next page)

16

Effective January 1, 2007, we adopted FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, an interpretation of Statement of Financial Accounting Standards 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

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 Unum US 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)

16.1

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 Unum US 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.

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 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.

(continued on next page)

16.2

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.

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. 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, LLC, a wholly-owned subsidiary of Unum Group, issued $130.0 million of senior, secured notes in a private placement. Interest on the notes is variable based upon a London Interbank Offered Rate (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.

(continued on next page)

16.3

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 Unum US 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.

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.

(continued on next page)

16.4

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 included 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 Unum US 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.

(continued on next page)

16.5

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 loss recognized during 2004 was $60.8 million after tax.

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 recoverable for this contract, as reported in our consolidated balance sheets, was approximately $607.3 million at March 31, 2007.

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 our 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 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 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 the claim reserve discount rate to reflect the segmentation of the investment portfolio between the individual income protection – recently issued business and the individual income protection – closed block business, 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.

16.6