Equibles

8-K

Unum Group (UNM)

8-K 2021-02-04 For: 2021-02-04
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Added on April 12, 2026

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): February 4, 2021

UNUM GROUP
(Exact name of registrant as specified in its charter)
Delaware 001-11294 62-1598430
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

1 Fountain Square

Chattanooga, Tennessee 37402

(Address of principal executive offices) (Zip Code)

(423) 294-1011

(Registrant's telephone number, including area code)

Not Applicable

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

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

☐ 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol Name of each exchange on which registered
Common stock, $0.10 par value UNM New York Stock Exchange
6.250% Junior Subordinated Notes due 2058 UNMA New York Stock Exchange

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

☐ Emerging growth company

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

Item 2.02    Results of Operations and Financial Condition.

On February 4, 2021, Unum Group issued a news release reporting its results for the fourth quarter of 2020, 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 February 4, 2021, Unum Group posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the fourth quarter of 2020. A copy of the Statistical Supplement is furnished herewith as Exhibit 99.2 and incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any of Unum Group's filings under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.
99.1 News release of Unum Group dated February 4, 2021, concerning earnings for the fourth quarter of 2020.
99.2 Statistical Supplement of Unum Group for the fourth quarter of 2020.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

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: February 4, 2021 By: /s/ J. Paul Jullienne
Name: J. Paul Jullienne
Title: Vice President, Managing Counsel, and
Corporate Secretary

Document

Exhibit 99.1
1 Fountain Square<br>Chattanooga, TN 37402<br>www.unum.com
FOR IMMEDIATE RELEASE
Contacts
MEDIA Natalie Godwin <br>ngodwin@unum.com
INVESTORS Tom White 423-294-8996<br>tawhite@unum.com

Unum Group Reports Fourth Quarter 2020 Results

•Net income of $135.4 million ($0.66 per diluted common share) for the fourth quarter of 2020; after-tax adjusted operating income was $235.3 million ($1.15 per diluted common share), in-line with prior outlook despite elevated December COVID-19 related mortality levels.

•Signed Closed Block individual disability reinsurance transaction expected to free $650 million of capital; $400 million realized in the fourth quarter.

•Long-term care GAAP reserves updated to reflect low interest rate environment; capital contributions consistent with expectations.

•Strong balance sheet and liquidity with holding company cash of $1.5 billion; weighted average risk-based capital ratio of approximately 365 percent.

•Book value per common share of $53.37 grew 8.7 percent over the year-ago quarter.

CHATTANOOGA, Tenn. (February 4, 2021) - Unum Group (NYSE: UNM) today reported net income of $135.4 million ($0.66 per diluted common share) for the fourth quarter of 2020, compared to net income of $296.2 million ($1.44 per diluted common share) for the fourth quarter of 2019.

Included in net income for the fourth quarter of 2020 is the net after-tax gain from the Closed Block individual disability reinsurance transaction of $32.0 million ($0.16 per diluted common share), an after-tax reserve increase of $119.7 million ($0.59 per diluted common share) in the long-term care product line of our Closed Block segment, an after-tax reserve increase of $13.8 million ($0.07 per diluted common share) related to our group pension block that is within the all other product line of our Closed Block segment, as well as a net after-tax realized investment gain on the Company’s investment portfolio, excluding the net realized investment gain associated with the Closed Block individual disability reinsurance transaction, of $1.6 million ($0.01 per diluted common share). Included in net income for the fourth quarter of 2019 are costs related to the early retirement of debt of $1.7 million ($0.01 per diluted common share), as well as is a net after-tax realized investment gain on the Company's investment portfolio of $7.2 million ($0.04 per diluted common share). Excluding the items above, after-tax adjusted operating income was $235.3 million ($1.15 per diluted common share) in the fourth quarter of 2020, compared to $290.7 million ($1.41 per diluted common share) in the fourth quarter of 2019.

“In 2020, our strong execution delivered solid financial performance as we adapted to new ways of doing business to best serve our customers in extraordinary times. While we expect elevated mortality rates from COVID-19 and a challenging employment picture to persist in the near term, as a leader in employee benefits we are well-positioned to return to sales and earnings growth in the second half of the year as vaccines take hold and the economy is expected to return to more normalized levels,” said Richard P. McKenney, president and chief executive officer. “Our constant focus on protecting employees and their families in their time of need will not change, and our broad offering and strong distribution, combined with the investments we have made in our people and capabilities, position us well to deliver on this purpose while also driving long-term growth and value creation.”

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

RESULTS BY SEGMENT

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

Unum US Segment

Unum US reported adjusted operating income of $143.5 million in the fourth quarter of 2020, a decrease of 45.5 percent from $263.1 million in the fourth quarter of 2019. Premium income for the segment decreased 1.5 percent to $1,485.1 million in the fourth quarter of 2020, compared to premium income of $1,508.3 million in the fourth quarter of 2019. Net investment income for the segment decreased 8.4 percent to $173.1 million in the fourth quarter of 2020, compared to $189.0 million in the fourth quarter of 2019.

Within the Unum US operating segment, the group disability line of business reported a 22.0 percent decrease in adjusted operating income to $64.7 million in the fourth quarter of 2020, compared to $83.0 million in the fourth quarter of 2019. Premium income for the group disability line of business decreased 1.1 percent to $650.2 million in the fourth quarter of 2020, compared to $657.5 million in the fourth quarter of 2019, driven primarily by lower natural growth in the in-force block. Net investment income decreased 9.3 percent to $93.5 million in the fourth quarter of 2020, compared to $103.1 million in the fourth quarter of 2019, driven by a decline in yield on invested assets, lower miscellaneous investment income, and a decrease in the level of invested assets. The benefit ratio for the fourth quarter of 2020 was 72.5 percent, compared to 74.0 percent in the fourth quarter of 2019, due primarily to higher claim recoveries in our group long-term disability product line, partially offset by higher claims incidence in the short term disability product line. Group long-term disability sales were $123.3 million in the fourth quarter of 2020, a decrease of 6.7 percent from $132.1 million in the fourth quarter of 2019. Group short-term disability sales were $99.7 million in the fourth quarter of 2020, an increase of 22.8 percent from $81.2 million in the fourth quarter of 2019. Persistency in the group long-term disability product line was 90.8 percent for full year 2020, compared to 90.7 percent for full year 2019. Persistency in the group short-term disability product line was 88.7 percent for full year 2020, compared to 89.8 percent for full year 2019.

The group life and accidental death and dismemberment line of business reported an adjusted operating loss of $21.9 million in the fourth quarter of 2020, compared to adjusted operating income of $68.2 million in the fourth quarter of 2019. Premium income for this line of business decreased 1.8 percent to $445.9 million in the fourth quarter of 2020, compared to $454.1 million in the fourth quarter of 2019, driven primarily by lower sales and persistency. Net investment income decreased 17.3 percent to $23.0 million in the fourth quarter of 2020, compared to $27.8 million in the fourth quarter of 2019, due primarily to a decline in yield on invested assets. The benefit ratio in the fourth quarter of 2020 was 90.4 percent, compared to 71.7 percent in the fourth quarter of 2019, due primarily to higher claims incidence in the group life product line, resulting from the impacts of COVID-19. Sales of group life and accidental death and dismemberment products decreased 18.6 percent in the fourth quarter of 2020 to $108.3 million, compared to $133.0 million in the fourth quarter of 2019. Persistency in the group life product line was 88.8 percent for full year 2020, compared to 90.6 percent for full year 2019. Persistency in the accidental death and dismemberment product line was 88.2 percent for full year 2020, compared to 89.9 percent for full year 2019.

The supplemental and voluntary line of business reported a decrease of 10.0 percent in adjusted operating income to $100.7 million in the fourth quarter of 2020, compared to $111.9 million in the fourth quarter of 2019. Premium income for the supplemental and voluntary line of business decreased 1.9 percent to $389.0 million in the fourth quarter of 2020, compared to $396.7 million in the fourth quarter of 2019, with a decline in the voluntary benefits product line, partially offset by growth in the individual disability and dental and vision product lines. Net investment income decreased 2.6 percent to $56.6 million in the fourth quarter of 2020, compared to $58.1 million in the fourth quarter of 2019, due primarily to a decline in yield on invested assets. The benefit ratio for the individual disability product line was 42.0 percent for the fourth quarter of 2020, compared to 50.6 percent for the fourth quarter of 2019, due to favorable incidence and mortality experience. The benefit ratio for the voluntary benefits product line was 48.0 percent in the fourth quarter of 2020, compared to 45.6 percent for the fourth quarter of 2019, due primarily to higher claims incidence in both the life and

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

disability product lines, resulting from the impacts of COVID-19. The benefit ratio for the dental and vision product line was 65.4 percent for the fourth quarter of 2020, compared to 71.1 percent for the fourth quarter of 2019, driven by lower utilization. Relative to the fourth quarter of 2019, sales in the individual disability product line decreased 9.3 percent in the fourth quarter of 2020 to $17.5 million. Sales in the voluntary benefits product line declined 24.2 percent in the fourth quarter of 2020 to $36.1 million. Sales in the dental and vision product line totaled $31.9 million for the fourth quarter of 2020, a decrease of 9.4 percent compared to the fourth quarter of 2019. Persistency in the individual disability product line was 89.5 percent for full year 2020, compared to 89.8 percent for full year 2019. Persistency in the voluntary benefits product line was 72.7 percent for full year 2020, compared to 73.2 percent for full year 2019. Persistency in the dental and vision product line was 85.0 percent for full year 2020, compared to 82.6 percent for full year 2019.

Unum International

The Unum International segment reported adjusted operating income of $20.7 million in the fourth quarter of 2020, a decrease of 13.4 percent from $23.9 million in the fourth quarter of 2019. Premium income was $165.7 million in the fourth quarter of 2020, which was generally consistent with the $165.6 million in the fourth quarter of 2019. Net investment income decreased 10.8 percent to $25.5 million in the fourth quarter of 2020, compared to $28.6 million in the fourth quarter of 2019. Sales decreased 33.1 percent to $18.8 million in the fourth quarter of 2020, compared to $28.1 million in the fourth quarter of 2019.

The Unum UK line of business reported adjusted operating income, in local currency, of £15.4 million in the fourth quarter of 2020, a decrease of 11.5 percent from £17.4 million in the fourth quarter of 2019. Premium income was £108.9 million in the fourth quarter of 2020, a decrease of 4.4 percent from £113.9 million in the fourth quarter of 2019, driven by lower persistency in both the group long-term disability and group life product lines as well as lower sales, partially offset by rate increases in the group long-term disability product line. Net investment income was £17.9 million in the fourth quarter of 2020, a decrease of 14.4 percent from £20.9 million in the fourth quarter of 2019, due to lower investment income from inflation index-linked bonds and a lower yield on fixed-rate bonds. The benefit ratio in the fourth quarter of 2020 was 75.6 percent, compared to 77.3 percent in the fourth quarter of 2019, primarily due to lower inflation-linked experience in benefits related to our group products. Sales decreased 39.7 percent to £11.4 million in the fourth quarter of 2020, compared to £18.9 million in the fourth quarter of 2019. Persistency in the group long-term disability product line was 88.2 percent for full year 2020, compared to 89.9 percent for full year 2019. Persistency in the group life product line was 81.8 percent for full year 2020, compared to 89.0 percent for full year 2019. Persistency in the supplemental product line was 90.7 percent for full year 2020, compared to 89.9 percent for full year 2019.

Colonial Life Segment

Colonial Life reported adjusted operating income of $71.2 million in the fourth quarter of 2020, a decrease of 18.8 percent from $87.7 million in the fourth quarter of 2019. Premium income decreased 1.4 percent to $418.8 million in the fourth quarter of 2020, compared to $424.9 million in the fourth quarter of 2019, primarily due to lower sales, partially offset by a higher level of persistency. Net investment income of $37.5 million in the fourth quarter of 2020, was generally consistent with $37.0 million in the fourth quarter of 2019. The benefit ratio was 56.6 percent in the fourth quarter of 2020, compared to the benefit ratio of 51.5 percent in the fourth quarter of 2019, driven primarily by unfavorable experience in the life and disability product lines, resulting from the impacts of COVID-19.

Sales decreased 26.5 percent to $154.2 million in the fourth quarter of 2020, compared to $209.7 million in the fourth quarter of 2019. Persistency in Colonial Life was 77.8 percent for full year 2020, compared to 77.0 percent for full year 2019.

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

Closed Block Segment

The Closed Block segment reported adjusted operating income of $104.2 million in the fourth quarter of 2020, which excludes the impacts from the Closed Block individual disability reinsurance transaction of $1,305.5 million, the amortization of cost of reinsurance related to the Closed Block individual disability reinsurance transaction of $2.6 million, the long-term care reserve increase of $151.5 million, and the reserve increase in group pension within the all other product line of $17.5 million, compared to $46.1 million in the fourth quarter of 2019. Premium income for this segment declined 1.4 percent in the fourth quarter of 2020, compared to the fourth quarter of 2019, due primarily to policy terminations and maturities, partially offset by premium rate increases on certain in-force business in the long-term care line of business. Net investment income was $356.7 million in the fourth quarter of 2020, which was generally consistent with $356.6 million in the fourth quarter of 2019, due primarily to improved net asset values on our private equity partnerships and a higher level of invested assets supporting the long-term care product line, mostly offset by a decrease in the yield on invested assets and a lower level of invested assets supporting individual disability product line resulting from the reinsurance transaction that closed in December 2020. In connection with the Closed Block individual disability reinsurance transaction, we recognized net realized investment gains of $1,302.3 million.

The interest adjusted loss ratio for the long-term care line of business, excluding the previously discussed reserve increase, was 60.2 percent in the fourth quarter of 2020 compared to 86.7 percent in the fourth quarter of 2019 driven primarily by higher claimant mortality. The interest adjusted loss ratio for the individual disability line of business, excluding the impacts from the reinsurance transaction that closed in December 2020, was 79.5 percent in the fourth quarter of 2020, compared to 74.7 percent in the fourth quarter of 2019, driven primarily by less favorable claims activity.

Corporate Segment

The Corporate segment reported an adjusted operating loss of $42.7 million in the fourth quarter of 2020, compared to an adjusted operating loss of $50.5 million in the fourth quarter of 2019, which excludes the cost related to the early retirement of debt of $2.1 million, primarily due to lower expenses.

OTHER INFORMATION

Shares Outstanding

The Company’s weighted average number of shares outstanding, assuming dilution, was 204.1 million for the fourth quarter of 2020, compared to 205.7 million for the fourth quarter of 2019. Shares outstanding totaled 203.7 million at December 31, 2020. The Company did not repurchase shares during the fourth quarter of 2020.

Capital Management

At December 31, 2020, the weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies was approximately 365 percent, and cash and marketable securities in the holding companies equaled $1,512.0 million.

Book Value

Book value per common share as of December 31, 2020 was $53.37, compared to $49.10 at December 31, 2019.

Outlook

Based on the year-end 2020 resurgence in COVID-19 related mortality and infection rates and the expectation for higher mortality rates in the first half of 2021, the Company expects a modest decline in after-tax adjusted operating income per share for full-year 2021 compared to full-year 2020. The Company also anticipates a strong recovery in after-tax adjusted operating income per share in the second half of 2021 as the expected impacts of the COVID-19 pandemic subside.

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

NON-GAAP FINANCIAL MEASURES

We analyze our performance using non-GAAP financial measures.  A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.  The non-GAAP financial measure of "after-tax adjusted operating income" differs from net income as presented in our consolidated operating results and income statements prepared in accordance with GAAP due to the exclusion of net realized investment gains and losses and amortization of cost of reinsurance as well as certain other items as specified in the reconciliations in the Financial Highlights section below.  We believe after-tax adjusted operating income is a better performance measure and better indicator of the profitability and underlying trends in our business.

Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments.  Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses.  Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities.

As previously discussed, we have essentially exited a substantial portion of our Closed Block individual disability product line through the reinsurance transaction that was executed in December 2020. As a result, we exclude the amortization of the cost of reinsurance that was recognized as a result of the exit of the business related to the ceded reserves for the cohort of policies on claim status. We believe that the exclusion of the amortization of the cost of reinsurance associated with an exited business provides a better view of our results from our ongoing businesses.

We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability.

Information reconciling the Company’s outlook on after-tax adjusted operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax adjusted operating income are those described in the preceding paragraphs. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio.

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

CONFERENCE CALL INFORMATION

Members of Unum Group senior management will host a conference call on Friday, February 5, at 8:00 a.m. (Eastern Time) to discuss the results of operations for the fourth quarter. Topics may include forward-looking information, such as the Company’s outlook on future results, trends in operations, and other material information.

The dial-in number for the conference call is (888) 254-3590 for U.S. and Canada (pass code 6539046). For international, the dial-in number is (929) 477-0402 (pass code 6539046). A live webcast of the call will also be available at www.investors.unum.com in a listen-only mode. It is recommended that webcast viewers access the “Investors” section of the Company’s website and opt-in to the webcast approximately 5-10 minutes prior to the start of the call. The Company will maintain a replay of the webcast on its website. A replay of the call will also be available through February 12 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International) - pass code 6539046.

In conjunction with today’s earnings announcement, the Company’s Statistical Supplement for the fourth quarter of 2020 is available on the “Investors” section of the Company’s website.

#

ABOUT UNUM GROUP

Unum Group (www.unum.com) provides a broad portfolio of financial protection benefits and services through the workplace, and is a leading provider of disability income protection worldwide. Through its Unum US, Unum UK, Unum Poland, and Colonial Life businesses, the company provides disability, life, accident, critical illness, dental and vision benefits that protect millions of working people and their families. Unum also provides leave and absence management services that streamline the leave experience for employers and employees, and stop-loss coverage to help self-insured employers protect against medical costs. Unum reported revenues of $12.0 billion in 2019 and provided $7.5 billion in benefits.

For more information, connect with us on Facebook (www.facebook.com/unumbenefits), Twitter (www.twitter.com/unumnews) and LinkedIn (www.linkedin.com/company/unum).

SAFE HARBOR STATEMENT

Certain information in this news release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those not based on historical information, but rather relate to our outlook, future operations, strategies, financial results, or other developments and speak only as of the date made. These forward-looking statements, including statements about anticipated growth in after-tax adjusted operating income per share, are subject to numerous assumptions, risks, and uncertainties, many of which are beyond our control. The following factors, in addition to other factors mentioned from time to time, may cause actual results to differ materially from those contemplated by the forward-looking statements: (1) the impact of the COVID-19 pandemic on our business, financial position, results of operations, liquidity and capital resources, and overall business operations; (2) sustained periods of low interest rates; (3) fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets; (4) unfavorable economic or business conditions, both domestic and foreign, that may result in decreases in sales, premiums, or persistency, as well as unfavorable claims activity; (5) changes in, or interpretations or enforcement of laws and regulations; (6) a cyber attack or other security breach could result in the unauthorized acquisition of confidential data; (7) the failure of our business recovery and incident management processes to resume our business operations in the event of a natural catastrophe, cyber attack, or other event; (8) investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our liabilities; (9) increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors; (10) changes in our financial strength and credit ratings; (11) our ability to develop digital capabilities or execute on our technology systems upgrades or replacements; (12) actual experience in the broad array of our products that deviates from our assumptions used in pricing, underwriting, and reserving; (13) availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us; (14) ability to generate sufficient internal liquidity and/or obtain external financing; (15) damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures; (16) effectiveness of our risk management program; (17) contingencies and the level

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 6

and results of litigation; (18) ineffectiveness of our derivatives hedging programs due to changes in the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation; (19) fluctuation in foreign currency exchange rates; and (20) recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets.

For further discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see Part 1, Item 1A of our annual report on Form 10-K for the year ended December 31, 2019 and Part II, Item 1A of our quarterly report on Form 10-Q for the quarter ended September 30, 2020. The forward-looking statements in this news release are being made as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statement contained herein, even if made available on our website or otherwise.

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

Unum Group

FINANCIAL HIGHLIGHTS

(Unaudited)

( in millions, except share data)
Year Ended December 31
2019 2020 2019
Revenue
Premium Income 2,319.9 $ 2,352.6 $ 9,378.1 $ 9,365.6
Net Investment Income 616.3 2,360.7 2,435.3
Net Realized Investment Gain (Loss) 9.2 1,199.1 (23.2)
Other Income 56.5 224.2 221.2
Total Revenue 3,034.6 13,162.1 11,998.9
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,881.3 8,972.9 7,496.2
Commissions 270.3 1,057.3 1,122.7
Interest and Debt Expense 46.6 188.2 177.4
Cost Related to Early Retirement of Debt 2.1 — 27.3
Deferral of Acquisition Costs (154.0) (576.2) (658.6)
Amortization of Deferred Acquisition Costs 141.4 606.1 609.9
Other Expenses 469.5 1,949.8 1,841.9
Total Benefits and Expenses 2,657.2 12,198.1 10,616.8
Income Before Income Tax 377.4 964.0 1,382.1
Income Tax 81.2 171.0 281.8
Net Income 135.4 $ 296.2 $ 793.0 $ 1,100.3
PER SHARE INFORMATION
Net Income Per Common Share
Basic 0.66 $ 1.44 $ 3.89 $ 5.25
Assuming Dilution 0.66 $ 1.44 $ 3.89 $ 5.24
Weighted Average Common Shares - Basic (000s) 205,565.5 203,642.0 209,728.9
Weighted Average Common Shares - Assuming Dilution (000s) 205,690.5 203,755.3 209,854.4
Outstanding Shares - (000s) 203,690.1 202,936.8

All values are in US Dollars.

UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 8

Reconciliation of Non-GAAP Financial Measures

Three Months Ended December 31
2020 2019
(in millions) per share * (in millions) per share *
Net Income $ 135.4 $ 0.66 $ 296.2 $ 1.44
Excluding:
Net Realized Investment Gains
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $273.5; $—) 1,028.8 5.04 — —
Net Realized Investment Gain, Other (net of tax expense of $1.0; $2.0) 1.6 0.01 7.2 0.04
Total Net Realized Investment Gain 1,030.4 5.05 7.2 0.04
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs (net of tax benefit of $274.2; $—) (1,031.3) (5.05) — —
Amortization of the Cost of Reinsurance (net of tax benefit of $0.6; $—) (2.0) (0.01) — —
Net Tax Benefits of Reinsurance Transaction 36.5 0.18 — —
Total Items Related to Closed Block Individual Disability Reinsurance Transaction (996.8) (4.88) — —
Long-term Care Reserve Increase (net of tax benefit of $31.8; $—) (119.7) (0.59) — —
Group Pension Reserve Increase (net of tax benefit of $3.7;<br><br>$—) (13.8) (0.07) — —
Costs Related to Early Retirement of Debt (net of tax benefit of $—; $0.4) — — (1.7) (0.01)
After-tax Adjusted Operating Income $ 235.3 $ 1.15 $ 290.7 $ 1.41
* Assuming Dilution
UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 9
--- ---
Year Ended December 31
--- --- --- --- --- --- --- --- ---
2020 2019
(in millions) per share * (in millions) per share *
Net Income $ 793.0 $ 3.89 $ 1,100.3 $ 5.24
Excluding:
Net Realized Investment Gains and Losses
Net Realized Investment Loss (net of tax benefit of $20.9; $4.5) (82.3) (0.40) (18.7) (0.09)
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $273.5; $—) 1,028.8 5.05 — —
Total Net Realized Investment Gain (Loss) 946.5 4.65 (18.7) (0.09)
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs (net of tax benefit of $274.2; $—) (1,031.3) (5.06) — —
Amortization of the Cost of Reinsurance (net of tax benefit of $0.6; $—) (2.0) (0.01) — —
Net Tax Benefits of Reinsurance Transaction 36.5 0.18 — —
Total Items Related to Closed Block Individual Disability Reinsurance Transaction (996.8) (4.89) — —
Long-term Care Reserve Increase (net of tax benefit of $31.8; $—) (119.7) (0.59) — —
Group Pension Reserve Increase (net of tax benefit of $3.7;<br><br>$—) (13.8) (0.07) — —
Costs Related to Organizational Design Update (net of tax benefit of $4.7; $—) (18.6) (0.09) — —
Impairment Loss on ROU Asset (net of tax benefit of $2.7;<br><br>$—) (10.0) (0.05) — —
Costs Related to Early Retirement of Debt (net of tax benefit of $—; $5.7) — — (21.6) (0.11)
After-tax Adjusted Operating Income $ 1,005.4 $ 4.93 $ 1,140.6 $ 5.44
* Assuming Dilution
December 31
--- --- --- --- --- --- --- --- ---
2020 2019
(in millions) per share (in millions) per share
Total Stockholders' Equity (Book Value) $ 10,871.0 $ 53.37 $ 9,965.0 $ 49.10
Excluding:
Net Unrealized Gain on Securities 1,067.7 5.24 615.9 3.03
Net Gain on Hedges 97.8 0.48 187.8 0.93
Subtotal 9,705.5 47.65 9,161.3 45.14
Excluding:
Foreign Currency Translation Adjustment (261.3) (1.28) (281.6) (1.39)
Subtotal 9,966.8 48.93 9,442.9 46.53
Excluding:
Unrecognized Pension and Postretirement Benefit Costs (530.0) (2.61) (484.8) (2.39)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss) $ 10,496.8 $ 51.54 $ 9,927.7 $ 48.92
UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 10
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Document

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Unum Group

Statistical Supplement Fourth Quarter 2020

TABLE OF CONTENTS

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

Interim Results are Unaudited

Page
Financial Highlights 1
Capital Metrics 2
Ratings 3
Consolidated Statements of Income 4
Sales Data by Segment 5
Consolidated Balance Sheets 6
Financial Results by Segment 7
Quarterly Historical Financial Results by Segment 8
Financial Results and Selected Statistics by Segment
Unum US 9
Unum International 10
Colonial Life 11
Closed Block 12
Corporate 13
Reserves 13
Investments 15
Appendix to Statistical Supplement 16
See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.1 for a reconciliation of our non-GAAP financial measures.
N.M. = not a meaningful percentage

Unum Group Financial Highlights

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Consolidated U.S. GAAP Results¹
Premium Income $ 2,319.9 $ 2,352.6 $ 9,378.1 $ 9,365.6 $ 8,986.1
Adjusted Operating Revenue $ 2,968.6 $ 3,025.4 $ 11,963.0 $ 12,022.1 $ 11,638.0
Net Realized Investment Gain (Loss) 1,304.9 9.2 1,199.1 (23.2) (39.5)
Revenue $ 4,273.5 $ 3,034.6 $ 13,162.1 $ 11,998.9 $ 11,598.5
Net Income $ 135.4 $ 296.2 $ 793.0 $ 1,100.3 $ 523.4
Net Income Per Common Share:
Basic $ 0.66 $ 1.44 $ 3.89 $ 5.25 $ 2.38
Assuming Dilution $ 0.66 $ 1.44 $ 3.89 $ 5.24 $ 2.38
Assets $ 70,625.8 $ 67,013.4 $ 61,875.6
Stockholders' Equity $ 10,871.0 $ 9,965.0 $ 8,621.8
Adjusted Operating Return on Equity
Unum US 10.1 % 18.4 % 14.6 % 18.0 % 18.4 %
Unum International 9.4 % 8.2 % 6.5 % 11.7 % 13.4 %
Colonial Life 13.9 % 17.9 % 16.7 % 17.5 % 18.0 %
Core Operating Segments 10.9 % 17.2 % 14.1 % 17.2 % 17.8 %
Consolidated 9.7 % 12.8 % 10.7 % 12.8 % 13.2 %
Traditional U.S. Life Insurance Companies' Statutory Results2
--- --- --- --- --- --- --- --- --- --- ---
Net Gain (Loss) from Operations, After Tax $ (144.8) $ 265.6 $ 726.2 $ 1,027.2 $ 959.8
Net Realized Investment Gain (Loss), After Tax 10.6 (2.8) (79.4) (45.1) (6.8)
Net Income (Loss) $ (134.2) $ 262.8 $ 646.8 $ 982.1 $ 953.0
Capital and Surplus $ 3,875.0 $ 3,644.4 $ 3,572.7
Weighted Average Risk-based Capital Ratio ~ 365% ~ 365% ~ 370%

1 Generally Accepted Accounting Principles

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

Unum Group Capital Metrics

12/31/2020 12/31/2019 12/31/2018
(in millions) per share (in millions) per share (in millions) per share
Total Stockholders' Equity (Book Value) $ 10,871.0 $ 53.37 $ 9,965.0 $ 49.10 $ 8,621.8 $ 40.19
Excluding:
Net Unrealized Gain (Loss) on Securities 1,067.7 5.24 615.9 3.03 (312.4) (1.46)
Net Gain on Hedges 97.8 0.48 187.8 0.93 250.6 1.17
Subtotal 9,705.5 47.65 9,161.3 45.14 8,683.6 40.48
Excluding:
Foreign Currency Translation Adjustment (261.3) (1.28) (281.6) (1.39) (305.2) (1.42)
Subtotal 9,966.8 48.93 9,442.9 46.53 8,988.8 41.90
Excluding:
Unrecognized Pension and Postretirement Benefit Costs (530.0) (2.61) (484.8) (2.39) (447.2) (2.08)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss) $ 10,496.8 $ 51.54 $ 9,927.7 $ 48.92 $ 9,436.0 $ 43.98
Dividends Paid $ 233.2 $ 1.14 $ 231.3 $ 1.09 $ 217.0 $ 0.98
Three Months Ended Year Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Shares Repurchased (millions) — 3.3 — 12.3 8.7
Cost of Shares Repurchased (millions)(1) $ — $ 100.1 $ — $ 400.4 $ 350.7
Price (UNM closing price on last trading day of period) $ 22.94 $ 29.16 $ 29.38
Leverage Ratio 26.2 % 29.1 % 26.8 %
Holding Company Cash and Marketable Securities $ 1,512 $ 863 $ 602

(1) Includes commissions of $0.4 million and $0.7 million for the years ended December 31, 2019 and 2018, respectively, and $0.1 million for the three months ended December 31, 2019.

Unum Group Ratings

AM Best Fitch Moody's S&P
Outlook Negative Negative Negative Stable
Issuer Credit Ratings bbb BBB- Baa3 BBB
Financial Strength Ratings
Provident Life and Accident Insurance Company A A- A3 A
Unum Life Insurance Company of America A A- A3 A
Colonial Life & Accident Insurance Company A A- A3 A
The Paul Revere Life Insurance Company A A- A3 A
Starmount Life Insurance Company A- NR NR NR
Unum Insurance Company A- A- A3 NR
Unum Limited NR NR NR A-

NR = not rated

Unum Group Consolidated Statements of Income

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Revenue
Premium Income $ 2,319.9 $ 2,352.6 $ 9,378.1 $ 9,365.6 $ 8,986.1
Net Investment Income 593.5 616.3 2,360.7 2,435.3 2,453.7
Net Realized Investment Gain (Loss) 1,304.9 9.2 1,199.1 (23.2) (39.5)
Other Income 55.2 56.5 224.2 221.2 198.2
Total Revenue 4,273.5 3,034.6 13,162.1 11,998.9 11,598.5
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 3,346.7 1,881.3 8,972.9 7,496.2 8,020.4
Commissions 246.8 270.3 1,057.3 1,122.7 1,108.4
Interest and Debt Expense - Non-recourse Debt 1.2 1.1 3.1 5.3 6.9
Interest and Debt Expense - All Other Debt 44.4 45.5 185.1 172.1 160.4
Cost Related to Early Retirement of Debt — 2.1 — 27.3 —
Deferral of Acquisition Costs (129.4) (154.0) (576.2) (658.6) (668.0)
Amortization of Deferred Acquisition Costs 139.5 141.4 606.1 609.9 565.5
Other Expenses 499.6 469.5 1,949.8 1,841.9 1,777.1
Total Benefits and Expenses 4,148.8 2,657.2 12,198.1 10,616.8 10,970.7
Income Before Income Tax 124.7 377.4 964.0 1,382.1 627.8
Income Tax (Benefit) (10.7) 81.2 171.0 281.8 104.4
Net Income $ 135.4 $ 296.2 $ 793.0 $ 1,100.3 $ 523.4
Weighted Average Shares Outstanding
Basic 203.9 205.6 203.6 209.7 219.6
Assuming Dilution 204.1 205.7 203.8 209.9 220.1
Actual Number of Shares Outstanding 203.7 202.9 214.6

Unum Group Sales Data for Unum US Segment

Three Months Ended Year Ended
12/31/2020 12/31/2019 % Change 12/31/2020 12/31/2019 12/31/2018
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability $ 123.3 $ 132.1 (6.7) % $ 239.7 $ 241.5 $ 243.8
Group Short-term Disability 99.7 81.2 22.8 158.7 159.2 138.7
Group Life and AD&D 108.3 133.0 (18.6) 224.3 258.3 282.4
Subtotal 331.3 346.3 (4.3) 622.7 659.0 664.9
Supplemental and Voluntary
Individual Disability 17.5 19.3 (9.3) 71.4 75.9 77.2
Voluntary Benefits 36.1 47.6 (24.2) 241.6 300.6 303.1
Dental and Vision 31.9 35.2 (9.4) 63.9 74.6 69.4
Subtotal 85.5 102.1 (16.3) 376.9 451.1 449.7
Total Sales $ 416.8 $ 448.4 (7.0) $ 999.6 $ 1,110.1 $ 1,114.6
Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees) $ 198.5 $ 183.7 8.1 % $ 377.0 $ 370.8 $ 395.1
Large Case Market 132.8 162.6 (18.3) 245.7 288.2 269.8
Subtotal 331.3 346.3 (4.3) 622.7 659.0 664.9
Supplemental and Voluntary 85.5 102.1 (16.3) 376.9 451.1 449.7
Total Sales $ 416.8 $ 448.4 (7.0) $ 999.6 $ 1,110.1 $ 1,114.6

Unum Group Sales Data for Unum International Segment

Three Months Ended Year Ended
(in millions of dollars) 12/31/2020 12/31/2019 % Change 12/31/2020 12/31/2019 12/31/2018
Sales by Product
Unum UK
Group Long-term Disability $ 8.0 $ 14.7 (45.6) % $ 37.7 $ 43.2 $ 44.7
Group Life 4.5 6.4 (29.7) 20.6 24.3 21.5
Supplemental 2.4 3.3 (27.3) 18.9 19.5 17.4
Unum Poland 3.9 3.7 5.4 13.3 13.0 3.4
Total Sales $ 18.8 $ 28.1 (33.1) $ 90.5 $ 100.0 $ 87.0
Sales by Market Sector
Unum UK
Group Long-term Disability and Group Life
Core Market (< 500 employees) $ 9.3 $ 11.0 (15.5) % $ 36.2 $ 38.2 $ 36.6
Large Case Market 3.2 10.1 (68.3) 22.1 29.3 29.6
Subtotal 12.5 21.1 (40.8) 58.3 67.5 66.2
Supplemental 2.4 3.3 (27.3) 18.9 19.5 17.4
Unum Poland 3.9 3.7 5.4 13.3 13.0 3.4
Total Sales $ 18.8 $ 28.1 (33.1) $ 90.5 $ 100.0 $ 87.0
(in millions of pounds)
Unum UK Sales by Product
Group Long-term Disability £ 6.1 £ 11.4 (46.5) % £ 29.5 £ 33.7 £ 33.5
Group Life 3.4 5.0 (32.0) 16.1 19.0 16.2
Supplemental 1.9 2.5 (24.0) 14.9 15.1 12.8
Total Sales £ 11.4 £ 18.9 (39.7) £ 60.5 £ 67.8 £ 62.5
Unum UK Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees) £ 7.2 £ 8.6 (16.3) % £ 28.3 £ 29.9 £ 27.6
Large Case Market 2.3 7.8 (70.5) 17.3 22.8 22.1
Subtotal 9.5 16.4 (42.1) 45.6 52.7 49.7
Supplemental 1.9 2.5 (24.0) 14.9 15.1 12.8
Total Sales £ 11.4 £ 18.9 (39.7) £ 60.5 £ 67.8 £ 62.5
  1. 1

Unum Group Sales Data for Colonial Life Segment

Three Months Ended Year Ended
12/31/2020 12/31/2019 % Change 12/31/2020 12/31/2019 12/31/2018
Sales by Product
Accident, Sickness, and Disability $ 96.3 $ 122.4 (21.3) % $ 261.5 $ 354.4 $ 355.0
Life 32.5 53.3 (39.0) 88.8 122.7 111.9
Cancer and Critical Illness 25.4 34.0 (25.3) 62.8 88.9 94.4
Total Sales $ 154.2 $ 209.7 (26.5) $ 413.1 $ 566.0 $ 561.3
Sales by Market Sector
Commercial
Core Market (< 1,000 employees) $ 95.4 $ 119.1 (19.9) % $ 266.2 $ 345.7 $ 349.0
Large Case Market 26.8 30.5 (12.1) 57.4 81.4 95.5
Subtotal 122.2 149.6 (18.3) 323.6 427.1 444.5
Public Sector 32.0 60.1 (46.8) 89.5 138.9 116.8
Total Sales $ 154.2 $ 209.7 (26.5) $ 413.1 $ 566.0 $ 561.3
  1. 2

Unum Group Consolidated Balance Sheets

December 31
2020 2019
Assets
Investments
Fixed Maturity Securities - at fair value $ 44,137.3 $ 47,443.7
Mortgage Loans 2,432.1 2,397.0
Policy Loans 3,683.9 3,779.5
Other Long-term Investments 960.2 844.2
Short-term Investments 1,470.0 1,294.5
Total Investments 52,683.5 55,758.9
Other Assets
Cash and Bank Deposits 197.0 84.1
Accounts and Premiums Receivable 1,519.3 1,602.9
Reinsurance Recoverable 10,666.0 4,780.7
Accrued Investment Income 611.4 693.0
Deferred Acquisition Costs 2,272.6 2,324.0
Goodwill 353.0 351.7
Property and Equipment 498.0 534.1
Income Tax Receivable 72.7 —
Other Assets 1,752.3 884.0
Total Assets $ 70,625.8 $ 67,013.4

Unum Group Consolidated Balance Sheets - Continued

December 31
2020 2019
Liabilities and Stockholders' Equity
Liabilities
Policy and Contract Benefits $ 1,855.4 $ 1,745.5
Reserves for Future Policy and Contract Benefits 49,653.0 47,780.1
Unearned Premiums 349.3 363.9
Other Policyholders’ Funds 1,663.9 1,599.7
Income Tax Payable — 256.7
Deferred Income Tax 416.1 95.4
Short-term Debt — 399.7
Long-term Debt - Non-recourse — 78.1
Long-term Debt - All Other 3,345.7 2,848.8
Other Liabilities 2,471.4 1,880.5
Total Liabilities 59,754.8 57,048.4
Stockholders’ Equity
Common Stock 30.7 30.6
Additional Paid-in Capital 2,376.2 2,348.1
Accumulated Other Comprehensive Income 374.2 37.3
Retained Earnings 11,269.6 10,728.7
Treasury Stock (3,179.7) (3,179.7)
Total Stockholders’ Equity 10,871.0 9,965.0
Total Liabilities and Stockholders’ Equity $ 70,625.8 $ 67,013.4
  1. 1

Unum Group Deferred Acquisition Costs by Segment

Unum US Unum International Colonial Life Consolidated
Balances at December 31, 2017 $ 1,205.4 $ 21.3 $ 957.9 $ 2,184.6
Capitalization 344.0 8.1 315.9 668.0
Amortization (315.1) (8.2) (242.2) (565.5)
Adjustment Related to Unrealized Investment Gains and Losses 5.1 — 18.4 23.5
Foreign Currency — (1.2) — (1.2)
Balances at December 31, 2018 1,239.4 20.0 1,050.0 2,309.4
Capitalization 334.5 12.8 311.3 658.6
Amortization (344.0) (7.1) (258.8) (609.9)
Adjustment Related to Unrealized Investment Gains and Losses (6.9) — (27.9) (34.8)
Foreign Currency — 0.7 — 0.7
Balances at December 31, 2019 1,223.0 26.4 1,074.6 2,324.0
Capitalization 291.5 12.1 272.6 576.2
Amortization (341.0) (7.4) (257.7) (606.1)
Adjustment Related to Unrealized Investment Gains and Losses (4.8) — (17.6) (22.4)
Foreign Currency — 0.9 — 0.9
Balances at December 31, 2020 $ 1,168.7 $ 32.0 $ 1,071.9 $ 2,272.6
  1. 2

Unum Group Balance Sheets by Segment - December 31, 2020

Unum US
Group Disability Group Life and Accidental Death & Dismemberment Supplemental and Voluntary Total Unum US Unum International Colonial Life Closed Block Corporate Consolidated
Assets
Investments $ 8,388.5 $ 2,425.8 $ 5,401.5 $ 16,215.8 $ 3,749.0 $ 3,511.2 $ 26,543.7 $ 2,663.8 $ 52,683.5
Deferred Acquisition Costs 95.3 76.4 997.0 1,168.7 32.0 1,071.9 — — 2,272.6
Goodwill 8.9 — 271.1 280.0 45.3 27.7 — — 353.0
All Other 486.0 408.5 475.2 1,369.7 379.9 253.5 11,624.0 1,689.6 15,316.7
Total Assets $ 8,978.7 $ 2,910.7 $ 7,144.8 $ 19,034.2 $ 4,206.2 $ 4,864.3 $ 38,167.7 $ 4,353.4 $ 70,625.8
Liabilities
Reserves and Policyholder Benefits $ 7,442.2 $ 1,878.3 $ 4,401.1 $ 13,721.6 $ 3,144.9 $ 2,892.8 $ 33,762.3 $ — $ 53,521.6
Debt — — — — — — — 3,345.7 3,345.7
All Other 106.1 62.2 366.2 534.5 128.2 135.6 290.8 1,798.4 2,887.5
Total Liabilities 7,548.3 1,940.5 4,767.3 14,256.1 3,273.1 3,028.4 34,053.1 5,144.1 59,754.8
Allocated Stockholders' Equity
Other Allocated Stockholders' Equity 1,404.7 903.8 2,103.9 4,412.4 823.5 1,621.7 3,890.5 (1,042.6) 9,705.5
Net Unrealized Gain on Securities and Net Gain on Hedges 25.7 66.4 273.6 365.7 109.6 214.2 224.1 251.9 1,165.5
Total Allocated Stockholders' Equity 1,430.4 970.2 2,377.5 4,778.1 933.1 1,835.9 4,114.6 (790.7) 10,871.0
Total Liabilities and Allocated Stockholders' Equity $ 8,978.7 $ 2,910.7 $ 7,144.8 $ 19,034.2 $ 4,206.2 $ 4,864.3 $ 38,167.7 $ 4,353.4 $ 70,625.8

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

  1. 3

Unum Group Balance Sheets by Segment - December 31, 2019

Unum US
Group Disability Group Life and Accidental Death & Dismemberment Supplemental and Voluntary Total Unum US Unum International Colonial Life Closed Block Corporate Consolidated
Assets
Investments $ 8,251.4 $ 2,522.8 $ 5,233.7 $ 16,007.9 $ 3,378.1 $ 3,281.4 $ 31,042.0 $ 2,049.5 $ 55,758.9
Deferred Acquisition Costs 99.1 79.7 1,044.2 1,223.0 26.4 1,074.6 — — 2,324.0
Goodwill 8.9 — 271.1 280.0 44.0 27.7 — — 351.7
All Other 443.4 252.7 379.3 1,075.4 420.6 245.3 5,966.7 870.8 8,578.8
Total Assets $ 8,802.8 $ 2,855.2 $ 6,928.3 $ 18,586.3 $ 3,869.1 $ 4,629.0 $ 37,008.7 $ 2,920.3 $ 67,013.4
Liabilities
Reserves and Policyholder Benefits $ 7,288.7 $ 1,749.8 $ 4,219.6 $ 13,258.1 $ 2,909.4 $ 2,711.2 $ 32,610.5 $ — $ 51,489.2
Debt — — — — — — 78.1 3,248.5 3,326.6
All Other 128.0 34.2 404.8 567.0 132.6 216.2 13.5 1,303.3 2,232.6
Total Liabilities 7,416.7 1,784.0 4,624.4 13,825.1 3,042.0 2,927.4 32,702.1 4,551.8 57,048.4
Allocated Stockholders' Equity
Other Allocated Stockholders' Equity 1,363.9 1,033.7 2,114.7 4,512.3 771.9 1,555.2 4,069.3 (1,747.4) 9,161.3
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges 22.2 37.5 189.2 248.9 55.2 146.4 237.3 115.9 803.7
Total Allocated Stockholders' Equity 1,386.1 1,071.2 2,303.9 4,761.2 827.1 1,701.6 4,306.6 (1,631.5) 9,965.0
Total Liabilities and Allocated Stockholders' Equity $ 8,802.8 $ 2,855.2 $ 6,928.3 $ 18,586.3 $ 3,869.1 $ 4,629.0 $ 37,008.7 $ 2,920.3 $ 67,013.4
  1. 4

Unum Group Financial Results by Segment

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

Three Months Ended Year Ended
12/31/2020 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Premium Income
Unum US $ 1,485.1 $ 1,508.3 (1.5) % $ 6,018.9 $ 6,016.6 — %
Unum International 165.7 165.6 0.1 652.8 630.5 3.5
Colonial Life 418.8 424.9 (1.4) 1,712.0 1,685.0 1.6
Closed Block 250.3 253.8 (1.4) 994.4 1,033.5 (3.8)
2,319.9 2,352.6 (1.4) 9,378.1 9,365.6 0.1
Net Investment Income
Unum US 173.1 189.0 (8.4) 720.3 739.4 (2.6)
Unum International 25.5 28.6 (10.8) 104.6 122.5 (14.6)
Colonial Life 37.5 37.0 1.4 155.7 148.0 5.2
Closed Block 356.7 356.6 — 1,370.3 1,404.9 (2.5)
Corporate 0.7 5.1 (86.3) 9.8 20.5 (52.2)
593.5 616.3 (3.7) 2,360.7 2,435.3 (3.1)
Other Income
Unum US 37.4 36.7 1.9 154.9 142.8 8.5
Unum International 0.1 0.3 (66.7) 0.5 0.6 (16.7)
Colonial Life 0.2 1.2 (83.3) 1.1 3.4 (67.6)
Closed Block 16.9 17.8 (5.1) 66.6 71.3 (6.6)
Corporate 0.6 0.5 20.0 1.1 3.1 (64.5)
55.2 56.5 (2.3) 224.2 221.2 1.4
Total Adjusted Operating Revenue
Unum US 1,695.6 1,734.0 (2.2) 6,894.1 6,898.8 (0.1)
Unum International 191.3 194.5 (1.6) 757.9 753.6 0.6
Colonial Life 456.5 463.1 (1.4) 1,868.8 1,836.4 1.8
Closed Block 623.9 628.2 (0.7) 2,431.3 2,509.7 (3.1)
Corporate 1.3 5.6 (76.8) 10.9 23.6 (53.8)
$ 2,968.6 $ 3,025.4 (1.9) $ 11,963.0 $ 12,022.1 (0.5)

Unum Group Financial Results by Segment - Continued

Three Months Ended Year Ended
12/31/2020 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Benefits and Expenses
Unum US $ 1,552.1 $ 1,470.9 5.5 % $ 6,068.7 $ 5,867.7 3.4 %
Unum International 170.6 170.6 — 681.3 645.7 5.5
Colonial Life 385.3 375.4 2.6 1,533.4 1,491.9 2.8
Closed Block 1,996.8 582.1 N.M. 3,667.0 2,372.0 54.6
Corporate 44.0 58.2 (24.4) 247.7 239.5 3.4
4,148.8 2,657.2 56.1 12,198.1 10,616.8 14.9
Income (Loss) Before Income Tax Expense (Benefit) and Net Realized Investment Gain (Loss)
Unum US 143.5 263.1 (45.5) 825.4 1,031.1 (19.9)
Unum International 20.7 23.9 (13.4) 76.6 107.9 (29.0)
Colonial Life 71.2 87.7 (18.8) 335.4 344.5 (2.6)
Closed Block (1,372.9) 46.1 N.M. (1,235.7) 137.7 N.M.
Corporate (42.7) (52.6) (18.8) (236.8) (215.9) 9.7
(1,180.2) 368.2 (420.5) (235.1) 1,405.3 (116.7)
Income Tax Expense (Benefit) (285.2) 79.2 (460.1) (81.6) 286.3 (128.5)
Income (Loss) Before Net Realized Investment Gain (Loss) (895.0) 289.0 (409.7) (153.5) 1,119.0 (113.7)
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $274.5; $2.0; $252.6; $(4.5)) 1,030.4 7.2 N.M. 946.5 (18.7) N.M.
Net Income $ 135.4 $ 296.2 (54.3) $ 793.0 $ 1,100.3 (27.9)
  1. 1

Unum Group Quarterly Historical Financial Results by Segment

12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
Premium Income
Unum US $ 1,485.1 $ 1,483.4 $ 1,522.7 $ 1,527.7 $ 1,508.3 $ 1,501.9 $ 1,504.5 $ 1,501.9 $ 1,435.1
Unum International 165.7 165.4 157.1 164.6 165.6 152.3 158.6 154.0 152.3
Colonial Life 418.8 419.9 438.6 434.7 424.9 419.9 420.9 419.3 410.1
Closed Block 250.3 249.4 250.3 244.4 253.8 257.1 259.1 263.5 265.8
2,319.9 2,318.1 2,368.7 2,371.4 2,352.6 2,331.2 2,343.1 2,338.7 2,263.3
Net Investment Income
Unum US 173.1 190.7 176.9 179.6 189.0 184.2 184.1 182.1 187.7
Unum International 25.5 26.3 26.3 26.5 28.6 24.3 44.8 24.8 31.1
Colonial Life 37.5 43.7 36.8 37.7 37.0 36.9 37.2 36.9 37.0
Closed Block 356.7 351.2 326.3 336.1 356.6 347.3 354.5 346.6 345.8
Corporate 0.7 1.3 2.7 5.1 5.1 6.7 4.3 4.3 7.0
593.5 613.2 569.0 585.0 616.3 599.4 624.9 594.7 608.6
Other Income
Unum US 37.4 42.0 35.3 40.2 36.7 34.8 36.8 34.5 30.0
Unum International 0.1 0.2 0.2 — 0.3 — 0.3 — 0.4
Colonial Life 0.2 0.3 0.3 0.3 1.2 0.9 0.7 0.6 0.2
Closed Block 16.9 17.8 13.7 18.2 17.8 18.9 16.5 18.0 18.6
Corporate 0.6 0.3 0.2 — 0.5 1.0 1.7 — 1.1
55.2 60.6 49.7 58.7 56.5 55.6 56.0 53.1 50.3
Total Adjusted Operating Revenue
Unum US 1,695.6 1,716.1 1,734.9 1,747.5 1,734.0 1,720.9 1,725.4 1,718.5 1,652.8
Unum International 191.3 191.9 183.6 191.1 194.5 176.6 203.7 178.8 183.8
Colonial Life 456.5 463.9 475.7 472.7 463.1 457.7 458.8 456.8 447.3
Closed Block 623.9 618.4 590.3 598.7 628.2 623.3 630.1 628.1 630.2
Corporate 1.3 1.6 2.9 5.1 5.6 7.7 6.0 4.3 8.1
$ 2,968.6 $ 2,991.9 $ 2,987.4 $ 3,015.1 $ 3,025.4 $ 2,986.2 $ 3,024.0 $ 2,986.5 $ 2,922.2

Unum Group Quarterly Historical Financial Results by Segment - Continued

12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
Benefits and Expenses
Unum US $ 1,552.1 $ 1,527.9 $ 1,503.0 $ 1,485.7 $ 1,470.9 $ 1,459.5 $ 1,471.1 $ 1,466.2 $ 1,404.1
Unum International 170.6 170.5 168.5 171.7 170.6 152.4 173.0 149.7 153.4
Colonial Life 385.3 371.7 384.8 391.6 375.4 370.5 374.4 371.6 361.9
Closed Block 1,996.8 547.6 553.6 569.0 582.1 596.4 596.4 597.1 595.4
Corporate 44.0 79.0 73.7 51.0 58.2 81.8 49.8 49.7 56.3
4,148.8 2,696.7 2,683.6 2,669.0 2,657.2 2,660.6 2,664.7 2,634.3 2,571.1
Income (Loss) Before Income Tax Expense (Benefit) and Net Realized Investment Gain (Loss)
Unum US 143.5 188.2 231.9 261.8 263.1 261.4 254.3 252.3 248.7
Unum International 20.7 21.4 15.1 19.4 23.9 24.2 30.7 29.1 30.4
Colonial Life 71.2 92.2 90.9 81.1 87.7 87.2 84.4 85.2 85.4
Closed Block (1,372.9) 70.8 36.7 29.7 46.1 26.9 33.7 31.0 34.8
Corporate (42.7) (77.4) (70.8) (45.9) (52.6) (74.1) (43.8) (45.4) (48.2)
(1,180.2) 295.2 303.8 346.1 368.2 325.6 359.3 352.2 351.1
Income Tax Expense (Benefit) (285.2) 67.9 63.7 72.0 79.2 62.8 72.4 71.9 69.4
Income (Loss) Before Net Realized Investment Gain (Loss) (895.0) 227.3 240.1 274.1 289.0 262.8 286.9 280.3 281.7
Net Realized Investment Gain (Loss) 1,304.9 4.4 33.8 (144.0) 9.2 (26.2) (7.3) 1.1 (41.4)
Tax Expense (Benefit) on Net Realized Investment Gain (Loss) 274.5 0.6 8.4 (30.9) 2.0 (5.4) (1.6) 0.5 (8.8)
Net Income $ 135.4 $ 231.1 $ 265.5 $ 161.0 $ 296.2 $ 242.0 $ 281.2 $ 280.9 $ 249.1
Net Income Per Common Share - Assuming Dilution $ 0.66 $ 1.13 $ 1.30 $ 0.79 $ 1.44 $ 1.16 $ 1.33 $ 1.31 $ 1.15
  1. 1

Unum Group Financial Results for Unum US Segment

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income $ 1,485.1 $ 1,508.3 $ 6,018.9 $ 6,016.6 $ 5,736.4
Net Investment Income 173.1 189.0 720.3 739.4 778.7
Other Income 37.4 36.7 154.9 142.8 118.5
Total 1,695.6 1,734.0 6,894.1 6,898.8 6,633.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,065.1 1,015.1 4,138.7 4,022.1 3,856.5
Commissions 139.9 152.9 594.9 628.5 620.6
Deferral of Acquisition Costs (68.2) (82.6) (291.5) (334.5) (344.0)
Amortization of Deferred Acquisition Costs 79.2 77.2 341.0 344.0 315.1
Other Expenses 336.1 308.3 1,285.6 1,207.6 1,170.8
Total 1,552.1 1,470.9 6,068.7 5,867.7 5,619.0
Adjusted Operating Income $ 143.5 $ 263.1 $ 825.4 $ 1,031.1 $ 1,014.6
Operating Ratios (% of Premium Income):
Benefit Ratio 71.7 % 67.3 % 68.8 % 66.9 % 67.2 %
Other Expense Ratio 22.6 % 20.4 % 21.4 % 20.1 % 20.4 %
Adjusted Operating Income Ratio 9.7 % 17.4 % 13.7 % 17.1 % 17.7 %

Unum Group Financial Results for Unum US Group Disability

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Group Long-term Disability $ 454.0 $ 459.4 $ 1,828.5 $ 1,823.1 $ 1,766.2
Group Short-term Disability 196.2 198.1 799.2 768.8 706.3
Total Premium Income 650.2 657.5 2,627.7 2,591.9 2,472.5
Net Investment Income 93.5 103.1 388.8 401.5 432.7
Other Income 36.2 34.5 147.6 133.8 109.0
Total 779.9 795.1 3,164.1 3,127.2 3,014.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 471.1 486.8 1,921.9 1,927.9 1,880.7
Commissions 46.2 46.5 191.8 193.8 186.5
Deferral of Acquisition Costs (13.2) (12.1) (49.3) (49.5) (48.2)
Amortization of Deferred Acquisition Costs 13.4 12.5 53.1 50.7 44.7
Other Expenses 197.7 178.4 756.6 672.1 612.2
Total 715.2 712.1 2,874.1 2,795.0 2,675.9
Adjusted Operating Income $ 64.7 $ 83.0 $ 290.0 $ 332.2 $ 338.3
Operating Ratios (% of Premium Income):
Benefit Ratio 72.5 % 74.0 % 73.1 % 74.4 % 76.1 %
Other Expense Ratio 30.4 % 27.1 % 28.8 % 25.9 % 24.8 %
Adjusted Operating Income Ratio 10.0 % 12.6 % 11.0 % 12.8 % 13.7 %
Persistency:
Group Long-term Disability 90.8 % 90.7 % 90.9 %
Group Short-term Disability 88.7 % 89.8 % 87.2 %
  1. 1

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

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Group Life $ 405.1 $ 412.6 $ 1,640.5 $ 1,662.0 $ 1,583.7
Accidental Death & Dismemberment 40.8 41.5 163.9 165.7 156.3
Total Premium Income 445.9 454.1 1,804.4 1,827.7 1,740.0
Net Investment Income 23.0 27.8 97.2 107.4 106.5
Other Income 0.4 0.7 2.4 2.7 4.7
Total 469.3 482.6 1,904.0 1,937.8 1,851.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 402.9 325.6 1,470.4 1,314.1 1,237.7
Commissions 34.9 36.0 143.2 147.7 141.1
Deferral of Acquisition Costs (9.7) (9.0) (36.0) (37.8) (38.2)
Amortization of Deferred Acquisition Costs 10.0 10.2 39.3 38.1 35.9
Other Expenses 53.1 51.6 205.3 209.0 214.6
Total 491.2 414.4 1,822.2 1,671.1 1,591.1
Adjusted Operating Income (Loss) $ (21.9) $ 68.2 $ 81.8 $ 266.7 $ 260.1
Operating Ratios (% of Premium Income):
Benefit Ratio 90.4 % 71.7 % 81.5 % 71.9 % 71.1 %
Other Expense Ratio 11.9 % 11.4 % 11.4 % 11.4 % 12.3 %
Adjusted Operating Income (Loss) Ratio (4.9) % 15.0 % 4.5 % 14.6 % 14.9 %
Persistency:
Group Life 88.8 % 90.6 % 91.2 %
Accidental Death & Dismemberment 88.2 % 89.9 % 89.9 %
  1. 2

Unum Group Financial Results for Unum US Supplemental and Voluntary

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Individual Disability $ 115.7 $ 112.3 $ 456.0 $ 440.7 $ 425.4
Voluntary Benefits 208.6 221.0 875.2 910.2 895.7
Dental and Vision 64.7 63.4 255.6 246.1 202.8
Total Premium Income 389.0 396.7 1,586.8 1,597.0 1,523.9
Net Investment Income 56.6 58.1 234.3 230.5 239.5
Other Income 0.8 1.5 4.9 6.3 4.8
Total 446.4 456.3 1,826.0 1,833.8 1,768.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 191.1 202.7 746.4 780.1 738.1
Commissions 58.8 70.4 259.9 287.0 293.0
Deferral of Acquisition Costs (45.3) (61.5) (206.2) (247.2) (257.6)
Amortization of Deferred Acquisition Costs 55.8 54.5 248.6 255.2 234.5
Other Expenses 85.3 78.3 323.7 326.5 344.0
Total 345.7 344.4 1,372.4 1,401.6 1,352.0
Adjusted Operating Income $ 100.7 $ 111.9 $ 453.6 $ 432.2 $ 416.2
Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability 42.0 % 50.6 % 48.8 % 50.9 % 50.6 %
Voluntary Benefits 48.0 % 45.6 % 42.2 % 41.8 % 42.8 %
Dental and Vision 65.4 % 71.1 % 60.6 % 71.1 % 68.5 %
Other Expense Ratio 21.9 % 19.7 % 20.4 % 20.4 % 22.6 %
Adjusted Operating Income Ratio 25.9 % 28.2 % 28.6 % 27.1 % 27.3 %
Persistency:
Individual Disability 89.5 % 89.8 % 90.3 %
Voluntary Benefits 72.7 % 73.2 % 75.9 %
Dental and Vision 85.0 % 82.6 % 84.5 %
  1. 3

Unum Group Financial Results for Unum International Segment

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Unum UK
Group Long-term Disability $ 92.9 $ 91.1 $ 364.9 $ 353.4 $ 358.9
Group Life 25.2 31.8 108.5 115.7 110.8
Supplemental 25.9 23.8 99.8 89.5 81.7
Unum Poland 21.7 18.9 79.6 71.9 17.4
Total Premium Income 165.7 165.6 652.8 630.5 568.8
Net Investment Income 25.5 28.6 104.6 122.5 117.2
Other Income 0.1 0.3 0.5 0.6 0.4
Total 191.3 194.5 757.9 753.6 686.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 123.0 123.4 500.9 469.8 419.8
Commissions 12.9 13.5 49.7 48.7 39.1
Deferral of Acquisition Costs (3.2) (3.3) (12.1) (12.8) (8.1)
Amortization of Deferred Acquisition Costs 2.1 1.7 7.4 7.1 8.2
Other Expenses 35.8 35.3 135.4 132.9 113.5
Total 170.6 170.6 681.3 645.7 572.5
Adjusted Operating Income $ 20.7 $ 23.9 $ 76.6 $ 107.9 $ 113.9

Unum Group Financial Results for Unum UK

Three Months Ended Year Ended
(in millions of pounds, except exchange rate) 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Group Long-term Disability £ 70.3 £ 70.8 £ 284.2 £ 276.8 £ 269.0
Group Life 19.1 24.7 84.6 90.7 83.0
Supplemental 19.5 18.4 77.7 70.0 61.3
Total Premium Income 108.9 113.9 446.5 437.5 413.3
Net Investment Income 17.9 20.9 76.0 90.5 86.5
Other Income — 0.1 0.1 0.2 —
Total 126.8 134.9 522.6 528.2 499.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 82.3 88.0 352.5 335.5 307.4
Commissions 7.0 8.0 28.1 28.6 27.1
Deferral of Acquisition Costs (1.0) (1.4) (4.2) (5.4) (5.0)
Amortization of Deferred Acquisition Costs 1.4 1.3 5.3 5.4 6.1
Other Expenses 21.7 21.6 86.5 83.7 80.2
Total 111.4 117.5 468.2 447.8 415.8
Adjusted Operating Income £ 15.4 £ 17.4 £ 54.4 £ 80.4 £ 84.0
Weighted Average Pound/Dollar Exchange Rate 1.318 1.287 1.287 1.279 1.336
Operating Ratios (% of Premium Income):
Benefit Ratio 75.6 % 77.3 % 78.9 % 76.7 % 74.4 %
Other Expense Ratio 19.9 % 19.0 % 19.4 % 19.1 % 19.4 %
Adjusted Operating Income Ratio 14.1 % 15.3 % 12.2 % 18.4 % 20.3 %
Persistency:
Group Long-term Disability 88.2 % 89.9 % 87.8 %
Group Life 81.8 % 89.0 % 88.5 %
Supplemental 90.7 % 89.9 % 93.1 %
  1. 1

Unum Group Financial Results for Colonial Life Segment

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Accident, Sickness, and Disability $ 236.7 $ 245.8 $ 975.1 $ 973.4 $ 929.3
Life 93.9 89.0 376.4 351.6 328.4
Cancer and Critical Illness 88.2 90.1 360.5 360.0 346.1
Total Premium Income 418.8 424.9 1,712.0 1,685.0 1,603.8
Net Investment Income 37.5 37.0 155.7 148.0 151.2
Other Income 0.2 1.2 1.1 3.4 1.2
Total 456.5 463.1 1,868.8 1,836.4 1,756.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 237.1 218.8 906.5 865.0 824.9
Commissions 74.3 84.2 334.3 364.5 364.6
Deferral of Acquisition Costs (58.0) (68.1) (272.6) (311.3) (315.9)
Amortization of Deferred Acquisition Costs 58.2 62.5 257.7 258.8 242.2
Other Expenses 73.7 78.0 307.5 314.9 305.2
Total 385.3 375.4 1,533.4 1,491.9 1,421.0
Adjusted Operating Income $ 71.2 $ 87.7 $ 335.4 $ 344.5 $ 335.2
Operating Ratios (% of Premium Income):
Benefit Ratio 56.6 % 51.5 % 52.9 % 51.3 % 51.4 %
Other Expense Ratio 17.6 % 18.4 % 18.0 % 18.7 % 19.0 %
Adjusted Operating Income Ratio 17.0 % 20.6 % 19.6 % 20.4 % 20.9 %
Persistency:
Accident, Sickness, and Disability 74.3 % 73.2 % 74.2 %
Life 83.7 % 83.4 % 83.6 %
Cancer and Critical Illness 81.8 % 80.6 % 82.4 %

Unum Group Financial Results for Closed Block Segment

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Long-term Care $ 168.7 $ 162.4 $ 666.9 $ 651.6 $ 648.3
Individual Disability 79.5 90.4 319.6 374.3 420.8
All Other 2.1 1.0 7.9 7.6 8.0
Total Premium Income 250.3 253.8 994.4 1,033.5 1,077.1
Net Investment Income 356.7 356.6 1,370.3 1,404.9 1,377.1
Other Income 16.9 17.8 66.6 71.3 75.4
Total 623.9 628.2 2,431.3 2,509.7 2,529.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,921.5 524.0 3,426.8 2,139.3 2,919.2
Commissions 19.7 19.7 78.4 81.0 84.1
Interest and Debt Expense 1.2 1.1 3.1 5.3 6.9
Other Expenses 54.4 37.3 158.7 146.4 144.7
Total 1,996.8 582.1 3,667.0 2,372.0 3,154.9
Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses (1,372.9) 46.1 (1,235.7) 137.7 (625.3)
Long-term Care Reserve Increase 151.5 — 151.5 — 750.8
Group Pension Reserve Increase 17.5 — 17.5 — —
Impacts from Closed Block Individual Disability Reinsurance Transaction 1,305.5 — 1,305.5 — —
Amortization of the Cost of Reinsurance 2.6 — 2.6 — —
Adjusted Operating Income $ 104.2 $ 46.1 $ 241.4 $ 137.7 $ 125.5
Interest Adjusted Loss Ratios:
Long-term Care 151.2 % 86.7 % 91.9 % 88.1 % 206.8 %
Long-term Care Excluding Reserve Increase 60.2 % 68.9 % 91.0 %
Individual Disability N.M. 74.7 % N.M. 78.8 % 80.4 %
Individual Disability Excluding Impacts from Reinsurance Transaction 79.5 % 85.1 %
Operating Ratios (% of Premium Income):
Other Expense Ratio 21.7 % 14.7 % 16.0 % 14.2 % 13.4 %
Other Expense Ratio Excluding Impacts from Reinsurance Transaction 12.3 % 13.6 %
Income (Loss) Ratio (548.5) % (124.3) % (58.1) %
Adjusted Operating Income Ratio 41.6 % 18.2 % 24.3 % 13.3 % 11.7 %
Persistency:
Long-term Care 94.8 % 95.7 % 95.8 %
Individual Disability 88.0 % 88.1 % 88.3 %

Unum Group Financial Results for Corporate Segment

Three Months Ended Year Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2018
Adjusted Operating Revenue
Net Investment Income $ 0.7 $ 5.1 $ 9.8 $ 20.5 $ 29.5
Other Income 0.6 0.5 1.1 3.1 2.7
Total 1.3 5.6 10.9 23.6 32.2
Interest, Debt, and Other Expenses 44.0 58.2 247.7 239.5 203.3
Loss Before Income Tax and Net Realized Investment Gains and Losses (42.7) (52.6) (236.8) (215.9) (171.1)
Costs Related to Organizational Design Update — — 23.3 — —
Impairment Loss on ROU Asset — — 12.7 — —
Cost Related to Early Retirement of Debt — 2.1 — 27.3 —
Adjusted Operating Loss $ (42.7) $ (50.5) $ (200.8) $ (188.6) $ (171.1)

Unum Group Reserves

December 31, 2020
Gross Total Reinsurance Ceded
Policy Reserves Claim Reserves Total Net
% Incurred IBNR % Total
Group Disability $ — — % $ 5,663.4 $ 720.4 26.5 % $ 6,383.8 $ 58.3 $ 6,325.5
Group Life and Accidental Death & Dismemberment 58.8 0.3 715.4 261.3 4.0 1,035.5 3.0 1,032.5
Individual Disability 475.9 2.2 1,417.4 146.0 6.5 2,039.3 216.3 1,823.0
Voluntary Benefits 1,731.3 8.2 46.3 55.3 0.4 1,832.9 25.3 1,807.6
Dental and Vision — — 0.2 11.3 — 11.5 0.1 11.4
Unum US Segment 2,266.0 10.7 7,842.7 1,194.3 37.4 11,303.0 303.0 11,000.0
Unum International Segment 208.4 1.0 2,077.0 138.6 9.2 2,424.0 89.9 2,334.1
Colonial Life Segment 2,354.8 11.2 329.0 117.4 1.8 2,801.2 4.5 2,796.7
Individual Disability 196.3 0.9 9,641.9 144.2 40.5 9,982.4 7,810.1 2,172.3
Long-term Care 10,402.1 49.3 2,147.4 268.5 10.0 12,818.0 44.4 12,773.6
Other 5,675.0 26.9 166.1 113.1 1.1 5,954.2 4,966.3 987.9
Closed Block Segment 16,273.4 77.1 11,955.4 525.8 51.6 28,754.6 12,820.8 15,933.8
Subtotal $ 21,102.6 100.0 % $ 22,204.1 $ 1,976.1 100.0 % 45,282.8 13,218.2 32,064.6
Adjustment Related to Unrealized Investment Gains and Losses 6,225.6 200.2 6,025.4
Consolidated $ 51,508.4 $ 13,418.4 $ 38,090.0

The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are primarily due to movements in credit spreads and U.S. Treasury rates. The decline in total net reserves within the Closed Block Individual Disability product line compared to December 31, 2019 was driven by a coinsurance agreement that closed in December 2020 whereby we ceded $6,141.5 million of disabled life reserves that were on claim status as of July 1, 2020.

Unum Group Reserves

December 31, 2019
Gross Total Reinsurance Ceded
Policy Reserves Claim Reserves Total Net
% Incurred IBNR % Total
Group Disability $ — — % $ 5,814.5 $ 683.8 28.2 % $ 6,498.3 $ 58.3 $ 6,440.0
Group Life and Accidental Death & Dismemberment 59.9 0.3 721.1 234.2 4.1 1,015.2 6.2 1,009.0
Individual Disability 499.0 2.4 1,391.1 140.3 6.6 2,030.4 217.2 1,813.2
Voluntary Benefits 1,700.1 8.2 45.8 51.4 0.4 1,797.3 26.1 1,771.2
Dental and Vision — — — 15.4 0.1 15.4 0.2 15.2
Unum US Segment 2,259.0 10.9 7,972.5 1,125.1 39.4 11,356.6 308.0 11,048.6
Unum International Segment 186.5 0.9 1,986.4 110.0 9.1 2,282.9 87.6 2,195.3
Colonial Life Segment 2,229.0 10.8 297.4 113.2 1.8 2,639.6 6.2 2,633.4
Individual Disability 258.8 1.3 8,724.1 172.7 38.5 9,155.6 1,669.4 7,486.2
Long-term Care 9,864.6 47.8 2,045.2 232.0 9.9 12,141.8 44.7 12,097.1
Other 5,847.9 28.3 177.6 120.5 1.3 6,146.0 5,133.1 1,012.9
Closed Block Segment 15,971.3 77.4 10,946.9 525.2 49.7 27,443.4 6,847.2 20,596.2
Subtotal $ 20,645.8 100.0 % $ 21,203.2 $ 1,873.5 100.0 % 43,722.5 7,249.0 36,473.5
Adjustment Related to Unrealized Investment Gains and Losses 5,803.1 424.7 5,378.4
Consolidated $ 49,525.6 $ 7,673.7 $ 41,851.9
  1. 1

Unum Group Investments

12/31/2020 12/31/2020 12/31/2019
Fixed Maturity Securities (Fair Value) Selected Statistics
Public $ 26,948.2 61.1 % Earned Book Yield 4.75 % 5.00 %
Asset-Backed Securities 146.8 0.3 Average Duration (in years) 8.31 7.91
Residential Mortgage-Backed Securities 934.1 2.1
Commercial Mortgage-Backed Securities 26.8 0.1
Private Placements 6,432.6 14.6
High Yield 3,500.1 7.9
Government Securities 1,878.0 4.2
Municipal Securities (1) 4,261.2 9.7
Redeemable Preferred Stocks 9.5 —
Total $ 44,137.3 100.0 %
Amortized Cost Fair Value
Quality Ratings of Fixed Maturity Securities Schedule BA and Non-Current
Aaa 6.1 % 5.9 % Total Non-Current Investments $ 16.6 $ 30.5
Aa 10.1 10.4 Total Schedule BA Assets $ 776.8 $ 675.1
A 26.8 27.7
Baa 48.1 48.1
Below Baa 8.9 7.9
Total 100.0 % 100.0 %

Unum Group Investments at December 31, 2020

Fixed Maturity Securities - By Industry Classification - Unrealized Gain (Loss)
Classification Fair Value Net Unrealized Gain Fair Value of Fixed Maturity Securities with Gross Unrealized Loss Gross Unrealized Loss Fair Value of Fixed Maturity Securities with Gross Unrealized Gain Gross Unrealized Gain
Basic Industry $ 3,228.2 $ 467.6 $ 69.3 $ 5.9 $ 3,158.9 $ 473.5
Capital Goods 3,941.4 667.5 27.4 0.9 3,914.0 668.4
Communications 2,806.1 575.0 70.9 7.2 2,735.2 582.2
Consumer Cyclical 1,585.3 247.0 51.8 1.4 1,533.5 248.4
Consumer Non-Cyclical 7,110.7 1,345.8 107.5 5.1 7,003.2 1,350.9
Energy 3,738.5 591.1 178.4 13.6 3,560.1 604.7
Financial Institutions 3,645.8 531.4 74.1 2.5 3,571.7 533.9
Mortgage/Asset-Backed 1,107.7 87.8 6.1 0.2 1,101.6 88.0
Sovereigns 1,168.2 265.3 20.3 1.2 1,147.9 266.5
Technology 1,806.8 218.9 11.1 7.1 1,795.7 226.0
Transportation 2,065.3 322.2 52.9 3.3 2,012.4 325.5
U.S. Government Agencies and Municipalities 4,971.0 802.1 133.5 1.5 4,837.5 803.6
Public Utilities 6,962.3 1,475.9 101.7 6.0 6,860.6 1,481.9
Total $ 44,137.3 $ 7,597.6 $ 905.0 $ 55.9 $ 43,232.3 $ 7,653.5
Gross Unrealized Loss on Fixed Maturity Securities by Length of Time in Unrealized Loss Position
Investment-Grade Below-Investment-Grade
Category Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss
Less than 91 days $ 265.0 $ 3.8 $ 45.5 $ 4.0
91 through 180 days 141.0 3.9 0.0 —
181 through 270 days 29.7 1.5 32.6 1.6
271 days to 1 year 129.0 6.4 120.1 7.8
Greater than 1 year 28.6 2.4 113.5 24.5
Total $ 593.3 $ 18.0 $ 311.7 $ 37.9
  1. 1

Appendix to Statistical Supplement

2020 Significant Items

•In December 2020, Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company, and Unum Life Insurance Company of America, wholly-owned domestic insurance subsidiaries of Unum Group and collectively referred to as "the ceding companies", entered into a 100 percent coinsurance agreement with a subsidiary of Global Atlantic to reinsure as of July 1, 2020, approximately 75 percent of the Closed Block individual disability insurance business, primarily direct business written by the ceding companies. Provident Life and Casualty Insurance Company (PLC), also a wholly-owned domestic insurance subsidiary of Unum Group, entered into an agreement with the same subsidiary of Global Atlantic whereby PLC will provide a 12-year volatility cover to Global Atlantic for the active life cohort defined as policies not on claim status as of July 1, 2020 (ALR cohort), which represents approximately five percent of the ceded business. As part of this agreement, PLC received a payment from Global Atlantic of approximately $62 million. In connection with the first phase of the coinsurance agreement that closed in December 2020, the ceding companies paid a total cash ceding commission to Global Atlantic of approximately $438 million and transferred additional assets consisting primarily of fixed maturity securities and cash totaling $6,669.8 million. As a result of this reinsurance agreement, we recognized the following in the fourth quarter of 2020:

◦Net realized investment gain of $1,302.3 million before tax, or $1,028.8 million after tax, related to the transfer of investments.

◦Increase in benefits and change in reserves for future benefits of $1,284.5 million, or $1,014.7 million after tax, resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income.

◦Transaction costs totaling $21.0 million, or $16.6 million after tax.

◦Net tax benefit of $36.5 million.

◦Reinsurance recoverable of $6,141.5 million representing the ceded reserves related to the cohort of policies on claim status as of July 1, 2020 (DLR cohort).

◦Cost of reinsurance, or prepaid reinsurance premium, of $815.7 million related to the DLR cohort, of which we recognized amortization expense of $2.6 million, or $2.0 million after tax.

◦Deposit asset of $88.2 million related to the ALR cohort.

•Fourth quarter of 2020 reserve increases of $151.5 million and $17.5 million before tax, or $119.7 million and $13.8 million after tax, related to long-term care and group pension, respectively.

•In December 2020, Northwind Holdings redeemed the remaining $35.0 million of principal on the Northwind notes, and was released of any contractual collateral requirements

•Third quarter of 2020 costs related to organizational design update of $23.3 million, or $18.6 million after tax.

•Second quarter of 2020 impairment loss of $12.7 million, or $10.0 million after tax, on a right of use (ROU) asset related to an operating lease for office space that we do not plan to continue using to support our general operations.

•In June 2016, the Financial Accounting Standards Board (FASB) issued an update that amended the guidance on the impairment of financial instruments. This update added an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses, and will generally result in earlier recognition of allowances for losses. This new model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. This update also prospectively modified the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. We adopted this update effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment as of January 1, 2020 which resulted in a decrease to retained earnings of $18.9 million, a decrease to mortgage loans of $8.3 million, a decrease in reinsurance recoverable of $1.8 million, a decrease in accounts and premiums receivable of $13.5 million, a decrease in deferred income tax liability of $5.0 million, and an increase to other liabilities of $0.3 million.

Appendix to Statistical Supplement - Continued

2019 Significant Items

•2019 cost related to the early retirement of debt of $27.3 million before tax and $21.6 million after tax.

•In February 2016, the FASB issued an update that changed the accounting and disclosure requirements for leases. These changes include the requirement for lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments and a corresponding asset, adjusted for certain items, is also recorded. The expense recognition for lessees remained similar to previous accounting requirements for capital and operating leases. We adopted this update effective January 1, 2019 using a modified retrospective approach through a cumulative-effect adjustment as of January 1, 2019 which resulted in a decrease to retained earnings of $3.4 million, an increase to other assets of $117.7 million, a decrease in deferred income tax of $0.4 million, an increase to other liabilities of $122.0 million, and a decrease to income tax payable of $1.3 million.

2018 Significant Items

•In October 2018, we acquired 100 percent of the shares and voting interests in Unum Poland, a financial protection benefits provider in Poland. This acquisition will expand our European presence, which we believe to be an attractive market for financial protection benefits. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue, operating results, or sales during 2018.

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

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

Non-GAAP Financial Measures

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

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

•After-tax adjusted operating income or loss, which excludes realized investment gains or losses and amortization of the cost of reinsurance as well as certain other items, as applicable;

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

•Leverage ratio, which excludes the unrealized gain or loss on securities and net gain on hedges, and the non-recourse debt and associated capital of Northwind Holdings, LLC, in 2019 and 2018; and

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

16.1

Appendix to Statistical Supplement - Continued

Non-GAAP Financial Measures - Continued

Realized investment gains or losses and unrealized gains or losses on securities and net gains on hedges depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our Company. Leverage ratio and book value per common share excluding certain components of AOCI, certain of which tend to fluctuate depending on market conditions and general economic trends, are important measures.

As previously discussed, we have essentially exited a substantial portion of our Closed Block individual disability product line through the reinsurance transaction that was executed in December 2020. As a result, we exclude the amortization of the cost of reinsurance that was recognized as a result of the exit of the business related to the ceded reserves for the cohort of policies on claim status. We believe that the exclusion of the amortization of the cost of reinsurance associated with an exited business provides a better view of our results from our ongoing businesses.

We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability.

Information reconciling the Company’s outlook on after-tax adjusted operating income growth per share to the comparable GAAP financial measure is not provided. The only amounts excluded from after-tax adjusted operating income are those described in this Appendix to Statistical Supplement. The Company is unable to predict with reasonable certainty realized investment gains and losses, which are affected by overall market conditions and also by factors such as an economic or political change in the country of the issuer, a regulatory change pertaining to the issuer’s industry, a significant improvement or deterioration in the cash flows of the issuer, unforeseen accounting irregularities or fraud committed by an issuer, movement in credit spreads, ratings upgrades or downgrades, a change in the issuer’s marketplace or business prospects, or any other event that significantly affects the issuers of the fixed maturity securities which the Company holds in its investment portfolio. For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 16.3, other than book value per common share, which is presented on page 2.

  1. 2

Reconciliation of Non-GAAP Financial Measures

Three Months Ended
December 31 September 30 June 30 March 31 December 31 September 30 June 30 March 31 December 31
2020 2019 2018
Total Revenue $ 4,273.5 $ 2,996.3 $ 3,021.2 $ 2,871.1 $ 3,034.6 $ 2,960.0 $ 3,016.7 $ 2,987.6 $ 2,880.8
Excluding:
Net Realized Investment Gain (Loss) 1,304.9 4.4 33.8 (144.0) 9.2 (26.2) (7.3) 1.1 (41.4)
Adjusted Operating Revenue $ 2,968.6 $ 2,991.9 $ 2,987.4 $ 3,015.1 $ 3,025.4 $ 2,986.2 $ 3,024.0 $ 2,986.5 $ 2,922.2
  1. 3

Reconciliation of Non-GAAP Financial Measures - Continued

After-Tax Adjusted Operating Income (Loss) Average Allocated Equity(1) Adjusted Operating Return on Equity
Year Ended December 31, 2020
Unum US $ 651.4 $ 4,458.2 14.6 %
Unum International 51.9 797.7 6.5 %
Colonial Life 264.5 1,584.1 16.7 %
Core Operating Segments 967.8 6,840.0 14.1 %
Closed Block 183.8 3,979.2
Corporate (146.2) (1,395.2)
Total $ 1,005.4 $ 9,424.0 10.7 %
Year Ended December 31, 2019
Unum US $ 816.3 $ 4,526.6 18.0 %
Unum International 88.4 757.9 11.7 %
Colonial Life 272.7 1,558.6 17.5 %
Core Operating Segments 1,177.4 6,843.1 17.2 %
Closed Block 104.4 3,842.2
Corporate (141.2) (1,764.5)
Total $ 1,140.6 $ 8,920.8 12.8 %
Year Ended December 31, 2018
Unum US $ 803.4 $ 4,368.2 18.4 %
Unum International 93.1 694.4 13.4 %
Colonial Life 265.1 1,475.6 18.0 %
Core Operating Segments 1,161.6 6,538.2 17.8 %
Closed Block 117.0 3,512.5
Corporate (133.6) (1,359.1)
Total $ 1,145.0 $ 8,691.6 13.2 %

(1) Excludes unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.5. Due to the implementation of a FASB update for which the beginning balances 2020, 2019, and 2018 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2020, 2019, and 2018 using internally allocated equity that reflects the adjusted beginning balances at January 1, 2020, 2019 and 2018, respectively. As a result, average equity for the years ended December 31, 2020, 2019 and 2018 for certain of our segments will not compute using the historical allocated equity at December 31, 2019, 2018 and 2017, respectively.

  1. 4

Reconciliation of Non-GAAP Financial Measures - Continued

After-Tax Adjusted Operating Income (Loss) Average Allocated Equity(2) Annualized Adjusted Operating Return on Equity
Three Months Ended December 31, 2020
Unum US $ 112.5 $ 4,439.1 10.1 %
Unum International 18.6 795.4 9.4 %
Colonial Life 56.1 1,614.8 13.9 %
Core Operating Segments 187.2 6,849.3 10.9 %
Closed Block 81.2 4,091.5
Corporate (33.1) (1,273.5)
Total $ 235.3 $ 9,667.3 9.7 %
Three Months Ended December 31, 2019
Unum US $ 208.3 $ 4,517.0 18.4 %
Unum International 15.4 747.4 8.2 %
Colonial Life 69.4 1,547.4 17.9 %
Core Operating Segments 293.1 6,811.8 17.2 %
Closed Block 35.1 3,957.4
Corporate (37.5) (1,685.9)
Total $ 290.7 $ 9,083.3 12.8 %

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

Average allocated equity is computed as follows:

12/31/2020 9/30/2020 12/31/2019 9/30/2019 12/31/2018 12/31/2017
Total Stockholders' Equity $ 10,871.0 $ 10,892.2 $ 9,965.0 $ 9,631.6 $ 8,621.8 $ 9,574.9
Excluding:
Net Unrealized Gain (Loss) on Securities 1,067.7 1,104.5 615.9 422.1 (312.4) 607.8
Net Gain on Hedges 97.8 158.7 187.8 204.3 250.6 282.3
Total Adjusted Stockholders' Equity $ 9,705.5 $ 9,629.0 $ 9,161.3 $ 9,005.2 $ 8,683.6 $ 8,684.8
Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended
12/31/2020 12/31/2019 12/31/2018
Average Adjusted Stockholders' Equity $ 9,667.3 $ 9,424.0 $ 9,083.3 $ 8,920.8 $ 8,691.6
  1. 5

Reconciliation of Non-GAAP Financial Measures - Continued

Three Months Ended
December 31 September 30 December 31
2020 2019
(in millions) per share* (in millions) per share* (in millions) per share*
Net Income $ 135.4 $ 0.66 $ 231.1 $ 1.13 $ 296.2 $ 1.44
Excluding:
Net Realized Investment Gains
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $273.5; $—; $—) 1,028.8 5.04 — — — —
Net Realized Investment Gain, Other (net of tax expense of $1.0; $0.6; $2.0) 1.6 0.01 3.8 0.01 7.2 0.04
Total Net Realized Investment Gain 1,030.4 5.05 3.8 0.01 7.2 0.04
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs (net of tax benefit of $274.2; $—; $—) (1,031.3) (5.05) — — — —
Amortization of the Cost of Reinsurance (net of tax benefit of $0.6; $—; $—) (2.0) (0.01) — — — —
Net Tax Benefits of Reinsurance Transaction 36.5 0.18 — — — —
Total Items Related to Closed Block Individual Disability Reinsurance Transaction (996.8) (4.88) — — — —
Long-term Care Reserve Increase (net of tax benefit of $31.8; $—; $—) (119.7) (0.59) — — — —
Group Pension Reserve Increase (tax benefit of $3.7; $—; $—) (13.8) (0.07) — — — —
Costs Related to Organizational Design Update (net of tax benefit of $—;$4.7; $—) — — (18.6) (0.09) — —
Costs Related to Early Retirement of Debt (net of tax benefit of $—; $—; $0.4) — — — — (1.7) (0.01)
After-tax Adjusted Operating Income $ 235.3 $ 1.15 $ 245.9 $ 1.21 $ 290.7 $ 1.41
*Assuming Dilution.
  1. 6
Year Ended December 31
2020 2019 2018
(in millions) per share * (in millions) per share * (in millions) per share *
Net Income $ 793.0 $ 3.89 $ 1,100.3 $ 5.24 $ 523.4 $ 2.38
Excluding:
Net Realized Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $273.5; $—; $—) 1,028.8 5.05 — — — —
Net Realized Investment Loss, Other (net of tax benefit of $20.9; $4.5; $11.0) (82.3) (0.40) (18.7) (0.09) (28.5) (0.12)
Total Net Realized Investment Gain (Loss) 946.5 4.65 (18.7) (0.09) (28.5) (0.12)
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs (net of tax benefit of $274.2; $—; $—) (1,031.3) (5.06) — — — —
Amortization of the Cost of Reinsurance (net of tax benefit of $0.6; $—; $—) (2.0) (0.01) — — — —
Net Tax Benefits of Reinsurance Transaction 36.5 0.18 — — — —
Total Items Related to Closed Block Individual Disability Reinsurance Transaction (996.8) (4.89) — — — —
Long-term Care Reserve Increase (net of tax benefit of $31.8; $—; $157.7) (119.7) (0.59) — — (593.1) (2.70)
Group Pension Reserve Increase (tax benefit of $3.7; $—; $—) (13.8) (0.07) — — — —
Costs Related to Organizational Design Update (net of tax benefit of $4.7; $—; $—) (18.6) (0.09) — — — —
Impairment Loss on ROU Asset (net of tax benefit of $2.7; $—: $—) (10.0) (0.05) — — — —
Costs Related to Early Retirement of Debt (net of tax benefit of $—; $5.7; $—) — — (21.6) (0.11) — —
After-tax Adjusted Operating Income $ 1,005.4 $ 4.93 $ 1,140.6 $ 5.44 $ 1,145.0 $ 5.20
*Assuming Dilution.
  1. 7

Reconciliation of Non-GAAP Financial Measures - Continued

December 31
2020 2019 2018
Debt $ 3,345.7 $ 3,326.6 $ 2,971.3
Including:
Lease Liability 105.9 114.7 —
Excluding:
Non-recourse Debt — 78.1 137.1
Adjusted Debt and Lease Liability $ 3,451.6 $ 3,363.2 $ 2,834.2
Total Stockholders' Equity $ 10,871.0 $ 9,965.0 $ 8,621.8
Excluding:
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges 1,165.5 803.7 (61.8)
Northwind Capital — 984.6 953.1
Equity, As Adjusted 9,705.5 8,176.7 7,730.5
Debt, As Adjusted and Lease Liability 3,451.6 3,363.2 2,834.2
Total Adjusted Capital $ 13,157.1 $ 11,539.9 $ 10,564.7
Leverage Ratio (3) 26.2 % 29.1 % 26.8 %

(3) In connection with our January 1, 2019 adoption of the accounting update for leases, we have included the lease liability in the calculation of our leverage ratio on a prospective basis.

  1. 8

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