Equibles

8-K

Unum Group (UNM)

8-K 2020-07-28 For: 2020-07-28
View Original
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): July 28, 2020

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(s) 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 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 July 28, 2020, Unum Group (the "Company") issued a news release reporting its results for the second quarter of 2020, a copy of which is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

Also on July 28, 2020, the Company posted on its website at www.unum.com the Statistical Supplement relating to its financial results for the second 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 the Company'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.

Exhibit No. Description
99.1 News release of Unum Group dated July 28, 2020, concerning earnings for the second quarter of 2020.
99.2 Statistical Supplement of Unum Group for thesecondquarter 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: July 28, 2020 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 Brad Carmony 901-568-3088 <br>bcarmony@unum.com
INVESTORS Tom White 423-294-8996<br>tawhite@unum.com

Unum Group Reports Second Quarter 2020 Results

•Net income of $265.5 million ($1.30 per diluted common share) for the second quarter of 2020; after-tax adjusted operating income was $250.1 million ($1.23 per diluted common share).

•Strong balance sheet and liquidity with holding company cash of $1.6 billion; weighted average risk-based capital ratio of approximately 370 percent.

•After-tax adjusted operating statutory income of $327.0 million for the second quarter of 2020.

•Core business segments generated 1.7 percent growth in premium income despite a challenging environment for sales.

•High mortality experienced in group life, voluntary life, and long-term care in the current pandemic environment.

CHATTANOOGA, Tenn. (July 28, 2020) - Unum Group (NYSE: UNM) today reported net income of $265.5 million ($1.30 per diluted common share) for the second quarter of 2020, compared to net income of $281.2 million ($1.33 per diluted common share) for the second quarter of 2019.

Included in net income for the second quarter of 2020 is an after-tax impairment loss on the right-of-use (ROU) asset related to one of our operating leases for office space that we are no longer using to support our general operations of $10.0 million ($0.05 per diluted common share), as well as a net after-tax realized investment gain on the Company’s investment portfolio of $25.4 million ($0.12 per diluted common share). Included in net income for the second quarter of 2019 is a net after-tax realized investment loss on the Company's investment portfolio of $5.7 million ($0.03 per diluted common share). Excluding the items above, after-tax adjusted operating income was $250.1 million ($1.23 per diluted common share) in the second quarter of 2020, compared to $286.9 million ($1.36 per diluted common share) in the second quarter of 2019.

“In the middle of a very challenging environment our team executed well and we are proud of our responsiveness to our customers in this time of need. We also produced solid second quarter financial results, with good operating profits and continued financial strength." said Richard P. McKenney, president and chief executive officer. "As we look to the second half of the year there is still uncertainty to the path of the pandemic and its corresponding effects. We will continue to adapt to the changing landscape as we serve the needs of our customers."

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 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 $231.9 million in the second quarter of 2020, a decrease of 8.8 percent from $254.3 million in the second quarter of 2019. Premium income for the segment increased 1.2 percent to $1,522.7 million in the second quarter of 2020, compared to premium income of $1,504.5 million in the second quarter of 2019. Net investment income for the segment decreased 3.9 percent to $176.9 million in the second quarter of 2020, compared to $184.1 million in the second quarter of 2019.

Within the Unum US operating segment, the group disability line of business reported a 9.1 percent decrease in adjusted operating income to $76.0 million in the second quarter of 2020, compared to $83.6 million in the second quarter of 2019. Premium income for the group disability line of business increased 3.1 percent to $664.6 million in the second quarter of 2020, compared to $644.8 million in the second quarter of 2019, driven by growth in the in-force block resulting from higher prior period sales, partially offset by lower persistency. Net investment income decreased 2.4 percent to $96.5 million in the second quarter of 2020, compared to $98.9 million in the second quarter of 2019, driven by a decline in the yield and level of invested assets. The benefit ratio for the second quarter of 2020 was 72.8 percent, compared to 74.7 percent in the second quarter of 2019, due primarily to higher claim recoveries in our group long-term disability product line, partially offset by higher claims incidence. Group long-term disability sales were $55.2 million in the second quarter of 2020, an increase of 13.3 percent from $48.7 million in the second quarter of 2019. Group short-term disability sales were $29.6 million in the second quarter of 2020, a decrease of 19.1 percent from $36.6 million in the second quarter of 2019. Persistency in the group long-term disability product line was 89.4 percent for the first half of 2020, compared to 90.5 percent for the first half of 2019. Persistency in the group short-term disability product line was 86.9 percent for the first half of 2020, compared to 90.3 percent for the first half of 2019.

The group life and accidental death and dismemberment line of business reported adjusted operating income of $19.4 million in the second quarter of 2020, a decrease of 69.1 percent from $62.7 million in the second quarter of 2019. Premium income for this line of business decreased 1.2 percent to $456.3 million in the second quarter of 2020, compared to $461.7 million in the second quarter of 2019, driven primarily by lower sales and persistency. Net investment income decreased 13.7 percent to $23.3 million in the second quarter of 2020, compared to $27.0 million in the second quarter of 2019, due primarily to a decline in the yield on invested assets and lower miscellaneous investment income. The benefit ratio in the second quarter of 2020 was 81.8 percent, compared to 72.9 percent in the second 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 increased 5.2 percent in the second quarter of 2020 to $56.6 million, compared to $53.8 million in the second quarter of 2019. Persistency in the group life product line was 88.6 percent for the first half of 2020, compared to 91.2 percent for the first half of 2019. Persistency in the accidental death and dismemberment product line was 87.8 percent for the first half of 2020, compared to 90.1 percent for the first half of 2019.

The supplemental and voluntary line of business reported an increase of 26.4 percent in adjusted operating income to $136.5 million in the second quarter of 2020, compared to $108.0 million in the second quarter of 2019. Premium income for the supplemental and voluntary line of business increased 1.0 percent to $401.8 million in the second quarter of 2020, compared to $398.0 million in the second quarter of 2019, with growth in the individual disability and dental and vision product lines, mostly offset by a decline in the voluntary benefits product line. Net investment income decreased 1.9 percent to $57.1 million in the second quarter of 2020, compared to $58.2 million in the second quarter of 2019, due to a decline in the yield on invested assets, partially offset by an increase in the level of invested assets. The benefit ratio for the individual disability product line was 52.8 percent for the second quarter of 2020, compared to 53.5 percent for the second quarter of 2019, due to favorable claim recoveries and higher mortality

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

experience. The benefit ratio for the voluntary benefits product line was 43.1 percent in the second quarter of 2020, compared to 42.5 percent for the second quarter of 2019, due to lower policy terminations, partially offset by lower claim incidence. The benefit ratio for the dental and vision product line was 36.0 percent for the second quarter of 2020, compared to 71.6 percent for the second quarter of 2019, driven by lower claims incidence due to the impacts of COVID-19. Relative to the second quarter of 2019, sales in the individual disability product line were generally consistent in the second quarter of 2020 at $14.2 million. Sales in the voluntary benefits product line declined 13.0 percent in the second quarter of 2020 to $47.0 million. Sales in the dental and vision product line totaled $12.7 million for the second quarter of 2020, a decrease of 10.6 percent compared to the second quarter of 2019. Persistency in the individual disability product line was 90.1 percent for the first half of 2020, compared to 90.3 percent for the first half of 2019. Persistency in the voluntary benefits product line was 73.0 percent for the first half of 2020, compared to 72.7 percent for the first half of 2019. Persistency in the dental and vision product line was 81.7 percent for the first half of 2020, compared to 84.7 percent for the first half of 2019.

Unum International

The Unum International segment reported adjusted operating income of $15.1 million in the second quarter of 2020, a decrease of 50.8 percent from $30.7 million in the second quarter of 2019. Premium income decreased 0.9 percent to $157.1 million in the second quarter of 2020, compared to $158.6 million in the second quarter of 2019. Net investment income decreased 41.3 percent to $26.3 million in the second quarter of 2020, compared to $44.8 million in the second quarter of 2019. Sales increased 1.3 percent to $30.1 million in the second quarter of 2020, compared to $29.7 million in the second quarter of 2019.

The Unum UK line of business reported adjusted operating income, in local currency, of £10.1 million in the second quarter of 2020, a decrease of 55.5 percent from £22.7 million in the second quarter of 2019. Premium income was £111.7 million in the second quarter of 2020, an increase of 1.9 percent from £109.6 million in the second quarter of 2019, driven by sales growth and the impact of rate increases in the group long-term disability product line. Net investment income was £19.9 million in the second quarter of 2020, a decrease of 40.6 percent from £33.5 million in the second quarter of 2019, due to lower miscellaneous investment income resulting from a higher than normal level of bonds calls in the second quarter of 2019, lower investment income from inflation index-linked bonds which we invest in to support the claim reserves associated with certain group policies that provide for inflation-linked increases in benefits, and a decline in the yield on fixed-rate bonds. The benefit ratio in the second quarter of 2020 was 82.5 percent, compared to 85.6 percent in the second quarter of 2019, due to lower inflation-linked experience in benefits related to our group products and the reduction in the claim reserve discount rate to recognize the impact on future portfolio yields from the higher than normal level of bond calls experienced during the second quarter of 2019, partially offset by lower claim resolutions due to disruption in our claims processes and higher claims incidence in the group life product line, both resulting from the impacts of COVID-19. Sales increased 5.8 percent to £21.9 million in the second quarter of 2020, compared to £20.7 million in the second quarter of 2019. Persistency in the group long-term disability product line was 87.7 percent for the first half of 2020, compared to 89.5 percent for the first half of 2019. Persistency in the group life product line was 83.0 percent for the first half of 2020, compared to 88.4 percent for the first half of 2019. Persistency in the supplemental product line was 90.5 percent for the first half of 2020, compared to 92.2 percent for the first half of 2019.

Colonial Life Segment

Colonial Life reported a 7.7 percent increase in adjusted operating income to $90.9 million in the second quarter of 2020, compared to $84.4 million in the second quarter of 2019. Premium income increased 4.2 percent to $438.6 million in the second quarter of 2020, compared to $420.9 million in the second quarter of 2019, driven primarily by growth in the in-force block resulting from prior period sales growth and stable persistency. Net investment income was $36.8 million in the second quarter of 2020, which was generally consistent with the $37.2 million in the second quarter of 2019. The benefit ratio was 50.7 percent in the second quarter of 2020, compared to 51.4 percent in the second quarter of 2019, with favorable experience in the accident, sickness, and disability and cancer and critical illness lines of business, partially offset by unfavorable experience in the life product line.

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

Sales decreased 43.0 percent to $72.3 million in the second quarter of 2020, compared to $126.9 million in the second quarter of 2019. Persistency in Colonial Life was 77.5 percent for the first half of 2020, compared to 77.1 percent for the first half of 2019.

Closed Block Segment

The Closed Block segment reported adjusted operating income of $36.7 million in the second quarter of 2020, an increase of 8.9 percent from $33.7 million in the second quarter of 2019. Premium income for this segment declined 3.4 percent in the second quarter of 2020, compared to the second quarter of 2019, due to continued policy terminations and maturities in the individual disability line of business, partially offset by premium rate increases on certain in-force business in the long-term care line of business. Net investment income decreased 8.0 percent to $326.3 million in the second quarter of 2020, compared to $354.5 million in the second quarter of 2019, due primarily to a decline in the net asset values on our private equity partnerships, which are booked on a one-quarter lag and reflect the impact of COVID-19 on economic conditions during the first quarter of 2020, partially offset by an increase in the level of invested assets.

The interest adjusted loss ratio for the long-term care line of business was 67.0 percent in the second quarter of 2020, compared to an interest adjusted loss ratio of 87.4 percent in the second quarter of 2019, driven primarily by higher claimant mortality and lower submitted claims. The interest adjusted loss ratio for long-term care for the rolling twelve months ended June 30, 2020 was 81.1 percent which is below our expected range. The interest adjusted loss ratio for the individual disability line of business was 89.5 percent in the second quarter of 2020, compared to 81.3 percent in the second quarter of 2019, driven primarily by higher submitted claims.

Corporate Segment

The Corporate segment reported an adjusted operating loss of $58.1 million in the second quarter of 2020, which excludes the impairment loss on the ROU asset of $12.7 million, compared to an adjusted operating loss of $43.8 million in the second quarter of 2019.

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

OTHER INFORMATION

Shares Outstanding

The Company’s weighted average number of shares outstanding, assuming dilution, was 203.7 million for the second quarter of 2020, compared to 211.1 million for the second quarter of 2019. Shares outstanding totaled 203.5 million at June 30, 2020. The Company did not repurchase shares during the first half of 2020 and will not repurchase shares for the remainder of 2020.

Capital Management

At June 30, 2020, the weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies was approximately 370 percent, and cash and marketable securities in the holding companies equaled $1,553 million.

The Company intends to continue to pay its common stock dividend at the current rate.

Book Value

Book value per common share as of June 30, 2020 was $51.90, compared to $45.11 at June 30, 2019.

Outlook

Due to the uncertain economic environment caused by the COVID-19 pandemic, the Company is suspending its financial guidance for the remainder of 2020.

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 certain other items as specified in the reconciliations in the Financial Highlights section below.  We believe after-tax adjusted operating income is a better performance measure and better indicator of the profitability and underlying trends in our business.

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

We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals. We exclude these items as we believe them to be infrequent or unusual in nature, 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.

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 Wednesday, July 29, at 8:00 a.m. (Eastern Time) to discuss the results of operations for the second quarter. Topics may include forward-looking information, such as the Company’s outlook on future results, trends in operations, and other material information.

The dial-in number for the conference call is (800) 353-6461 for U.S. and Canada (pass code 6771105). For international, the dial-in number is (334) 323-0501 (pass code 6771105). 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. A replay of the webcast will be available on the Company's website. A replay of the call will also be available through Wednesday, August 5 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International) - pass code 6771105.

In conjunction with today’s earnings announcement, the Company’s Statistical Supplement for the second 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).

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

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 expectations for future shareholder dividends, 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 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 “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2019, as updated or supplemented from time to time in subsequent filings. 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)
Six Months Ended June 30
2019 2020 2019
Revenue
Premium Income 2,368.7 $ 2,343.1 $ 4,740.1 $ 4,681.8
Net Investment Income 624.9 1,154.0 1,219.6
Net Realized Investment Gain (Loss) (7.3) (110.2) (6.2)
Other Income 56.0 108.4 109.1
Total Revenue 3,016.7 5,892.3 6,004.3
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,902.6 3,737.6 3,743.4
Commissions 284.4 552.2 574.5
Interest and Debt Expense 42.6 93.2 84.7
Deferral of Acquisition Costs (170.3) (311.9) (344.0)
Amortization of Deferred Acquisition Costs 151.6 316.9 322.2
Other Expenses 453.8 964.6 918.2
Total Benefits and Expenses 2,664.7 5,352.6 5,299.0
Income Before Income Tax 352.0 539.7 705.3
Income Tax Expense 70.8 113.2 143.2
Net Income 265.5 $ 281.2 $ 426.5 $ 562.1
PER SHARE INFORMATION
Net Income Per Common Share
Basic 1.30 $ 1.33 $ 2.10 $ 2.64
Assuming Dilution 1.30 $ 1.33 $ 2.10 $ 2.64
Weighted Average Common Shares - Basic (000s) 211,068.7 203,466.9 212,672.8
Weighted Average Common Shares - Assuming Dilution (000s) 211,112.6 203,515.2 212,761.1
Outstanding Shares - (000s) 203,484.7 209,575.2

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 June 30
2020 2019
(in millions) per share * (in millions) per share *
Net Income $ 265.5 $ 1.30 $ 281.2 $ 1.33
Excluding:
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $8.4; $(1.6)) 25.4 0.12 (5.7) (0.03)
Impairment Loss on ROU Asset (net of tax benefit of $2.7; $— ) (10.0) (0.05) — —
After-tax Adjusted Operating Income $ 250.1 $ 1.23 $ 286.9 $ 1.36
* Assuming Dilution
June 30
--- --- --- --- --- --- --- --- ---
2020 2019
(in millions) per share (in millions) per share
Total Stockholders' Equity (Book Value) $ 10,561.4 $ 51.90 $ 9,453.1 $ 45.11
Excluding:
Net Unrealized Gain on Securities 963.1 4.74 286.9 1.37
Net Gain on Hedges 186.2 0.91 218.0 1.04
Subtotal 9,412.1 46.25 8,948.2 42.70
Excluding:
Foreign Currency Translation Adjustment (348.2) (1.71) (307.6) (1.46)
Subtotal 9,760.3 47.96 9,255.8 44.16
Excluding:
Unrecognized Pension and Postretirement Benefit Costs (473.9) (2.33) (439.8) (2.10)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss) $ 10,234.2 $ 50.29 $ 9,695.6 $ 46.26
UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. 9
--- ---

Document

cover2q2011.jpg

Unum Group

Statistical Supplement Second 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 14
Investments 15
Appendix to Statistical Supplement 16
See "Appendix to Statistical Supplement" on page 16 for a summary of significant items and page 16.1 for a reconciliation of our non-GAAP financial measures.
N.M. = not a meaningful percentage

Unum Group Financial Highlights

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Consolidated U.S. GAAP Results¹
Premium Income $ 2,368.7 $ 2,343.1 $ 4,740.1 $ 4,681.8 $ 9,365.6 $ 8,986.1
Adjusted Operating Revenue $ 2,987.4 $ 3,024.0 $ 6,002.5 $ 6,010.5 $ 12,022.1 $ 11,638.0
Net Realized Investment Gain (Loss) 33.8 (7.3) (110.2) (6.2) (23.2) (39.5)
Revenue $ 3,021.2 $ 3,016.7 $ 5,892.3 $ 6,004.3 $ 11,998.9 $ 11,598.5
Net Income $ 265.5 $ 281.2 $ 426.5 $ 562.1 $ 1,100.3 $ 523.4
Net Income Per Common Share:
Basic $ 1.30 $ 1.33 $ 2.10 $ 2.64 $ 5.25 $ 2.38
Assuming Dilution $ 1.30 $ 1.33 $ 2.10 $ 2.64 $ 5.24 $ 2.38
Assets $ 69,305.2 $ 65,843.7 $ 67,013.4 $ 61,875.6
Stockholders' Equity $ 10,561.4 $ 9,453.1 $ 9,965.0 $ 8,621.8
Adjusted Operating Return on Equity
Unum US 16.4 % 17.7 % 17.5 % 17.6 % 18.0 % 18.4 %
Unum International 6.9 % 13.8 % 7.5 % 13.6 % 11.7 % 13.4 %
Colonial Life 18.5 % 17.4 % 17.5 % 17.4 % 17.5 % 18.0 %
Core Operating Segments 15.9 % 17.2 % 16.4 % 17.1 % 17.2 % 17.8 %
Consolidated 10.8 % 12.9 % 11.3 % 12.9 % 12.8 % 13.2 %
Traditional U.S. Life Insurance Companies' Statutory Results^2^
--- --- --- --- --- --- --- --- --- --- --- --- ---
Net Gain from Operations, After Tax $ 327.0 $ 278.0 $ 653.1 $ 501.1 $ 1,027.2 $ 959.8
Net Realized Investment Loss, After Tax (20.9) (12.1) (84.4) (16.8) (45.1) (6.8)
Net Income $ 306.1 $ 265.9 $ 568.7 $ 484.3 $ 982.1 $ 953.0
Capital and Surplus $ 3,689.4 $ 3,600.0 $ 3,644.4 $ 3,572.7
Weighted Average Risk-based Capital Ratio ~ 370% ~ 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

6/30/2020 6/30/2019 12/31/2019 12/31/2018
(in millions) per share (in millions) per share (in millions) per share (in millions) per share
Total Stockholders' Equity (Book Value) $ 10,561.4 $ 51.90 $ 9,453.1 $ 45.11 $ 9,965.0 $ 49.10 $ 8,621.8 $ 40.19
Excluding:
Net Unrealized Gain (Loss) on Securities 963.1 4.74 286.9 1.37 615.9 3.03 (312.4) (1.46)
Net Gain on Hedges 186.2 0.91 218.0 1.04 187.8 0.93 250.6 1.17
Subtotal 9,412.1 46.25 8,948.2 42.70 9,161.3 45.14 8,683.6 40.48
Excluding:
Foreign Currency Translation Adjustment (348.2) (1.71) (307.6) (1.46) (281.6) (1.39) (305.2) (1.42)
Subtotal 9,760.3 47.96 9,255.8 44.16 9,442.9 46.53 8,988.8 41.90
Excluding:
Unrecognized Pension and Postretirement Benefit Costs (473.9) (2.33) (439.8) (2.10) (484.8) (2.39) (447.2) (2.08)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss) $ 10,234.2 $ 50.29 $ 9,695.6 $ 46.26 $ 9,927.7 $ 48.92 $ 9,436.0 $ 43.98
Dividends Paid $ 117.1 $ 0.57 $ 112.9 $ 0.52 $ 231.3 $ 1.09 $ 217.0 $ 0.98
Three Months Ended Six Months Ended Year Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Shares Repurchased (millions) — 2.9 — 5.6 12.3 8.7
Cost of Shares Repurchased (millions)^(1)^ $ — $ 100.2 $ — $ 200.2 $ 400.4 $ 350.7
Price (UNM closing price on last trading day of period) $ 16.59 $ 33.55 $ 29.16 $ 29.38
Leverage Ratio 31.4 % 29.6 % 29.1 % 26.8 %
Holding Company Cash and Marketable Securities $ 1,553 $ 977 $ 863 $ 602

^(1)^Includes commissions of $0.2 million for both the three and six months ended June 30, 2019. For the years ended December 31, 2019 and 2018, these amounts included commissions of $0.4 million and $0.7 million, respectively.

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 Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Revenue
Premium Income $ 2,368.7 $ 2,343.1 $ 4,740.1 $ 4,681.8 $ 9,365.6 $ 8,986.1
Net Investment Income 569.0 624.9 1,154.0 1,219.6 2,435.3 2,453.7
Net Realized Investment Gain (Loss) 33.8 (7.3) (110.2) (6.2) (23.2) (39.5)
Other Income 49.7 56.0 108.4 109.1 221.2 198.2
Total Revenue 3,021.2 3,016.7 5,892.3 6,004.3 11,998.9 11,598.5
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,882.8 1,902.6 3,737.6 3,743.4 7,496.2 8,020.4
Commissions 273.0 284.4 552.2 574.5 1,122.7 1,108.4
Interest and Debt Expense - Non-recourse Debt 0.7 1.4 1.5 3.0 5.3 6.9
Interest and Debt Expense - All Other Debt 46.8 41.2 91.7 81.7 172.1 160.4
Cost Related to Early Retirement of Debt — — — — 27.3 —
Deferral of Acquisition Costs (149.9) (170.3) (311.9) (344.0) (658.6) (668.0)
Amortization of Deferred Acquisition Costs 140.7 151.6 316.9 322.2 609.9 565.5
Other Expenses 489.5 453.8 964.6 918.2 1,841.9 1,777.1
Total Benefits and Expenses 2,683.6 2,664.7 5,352.6 5,299.0 10,616.8 10,970.7
Income Before Income Tax 337.6 352.0 539.7 705.3 1,382.1 627.8
Income Tax 72.1 70.8 113.2 143.2 281.8 104.4
Net Income $ 265.5 $ 281.2 $ 426.5 $ 562.1 $ 1,100.3 $ 523.4
Weighted Average Shares Outstanding
Basic 203.6 211.1 203.5 212.7 209.7 219.6
Assuming Dilution 203.7 211.1 203.5 212.8 209.9 220.1
Actual Number of Shares Outstanding 203.5 209.6 202.9 214.6

Unum Group Sales Data for Unum US Segment

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change 12/31/2019 12/31/2018
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability $ 55.2 $ 48.7 13.3 % $ 86.6 $ 85.6 1.2 % $ 241.5 $ 243.8
Group Short-term Disability 29.6 36.6 (19.1) 43.8 57.5 (23.8) 159.2 138.7
Group Life and AD&D 56.6 53.8 5.2 84.7 94.4 (10.3) 258.3 282.4
Subtotal 141.4 139.1 1.7 215.1 237.5 (9.4) 659.0 664.9
Supplemental and Voluntary
Individual Disability 14.2 14.4 (1.4) 36.9 29.5 25.1 75.9 77.2
Voluntary Benefits 47.0 54.0 (13.0) 175.6 206.4 (14.9) 300.6 303.1
Dental and Vision 12.7 14.2 (10.6) 23.5 26.7 (12.0) 74.6 69.4
Subtotal 73.9 82.6 (10.5) 236.0 262.6 (10.1) 451.1 449.7
Total Sales $ 215.3 $ 221.7 (2.9) $ 451.1 $ 500.1 (9.8) $ 1,110.1 $ 1,114.6
Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees) $ 80.6 $ 83.6 (3.6) % $ 131.8 $ 132.3 (0.4) % $ 370.8 $ 395.1
Large Case Market 60.8 55.5 9.5 83.3 105.2 (20.8) 288.2 269.8
Subtotal 141.4 139.1 1.7 215.1 237.5 (9.4) 659.0 664.9
Supplemental and Voluntary 73.9 82.6 (10.5) 236.0 262.6 (10.1) 451.1 449.7
Total Sales $ 215.3 $ 221.7 (2.9) $ 451.1 $ 500.1 (9.8) $ 1,110.1 $ 1,114.6

Unum Group Sales Data for Unum International Segment

Three Months Ended Six Months Ended Year Ended
(in millions of dollars) 6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change 12/31/2019 12/31/2018
Sales by Product
Unum UK
Group Long-term Disability $ 13.0 $ 12.4 4.8 % $ 21.6 $ 20.6 4.9 % $ 43.2 $ 44.7
Group Life 6.2 6.8 (8.8) 11.8 12.9 (8.5) 24.3 21.5
Supplemental 7.9 7.4 6.8 15.0 12.3 22.0 19.5 17.4
Unum Poland 3.0 3.1 (3.2) 5.6 6.5 (13.8) 13.0 3.4
Total Sales $ 30.1 $ 29.7 1.3 $ 54.0 $ 52.3 3.3 $ 100.0 $ 87.0
Sales by Market Sector
Unum UK
Group Long-term Disability and Group Life
Core Market (< 500 employees) $ 10.2 $ 9.9 3.0 % $ 19.3 $ 18.4 4.9 % $ 38.2 $ 36.6
Large Case Market 9.0 9.3 (3.2) 14.1 15.1 (6.6) 29.3 29.6
Subtotal 19.2 19.2 — 33.4 33.5 (0.3) 67.5 66.2
Supplemental 7.9 7.4 6.8 15.0 12.3 22.0 19.5 17.4
Unum Poland 3.0 3.1 (3.2) 5.6 6.5 (13.8) 13.0 3.4
Total Sales $ 30.1 $ 29.7 1.3 $ 54.0 $ 52.3 3.3 $ 100.0 $ 87.0
(in millions of pounds)
Unum UK Sales by Product
Group Long-term Disability £ 10.5 £ 9.7 8.2 % £ 17.2 £ 15.9 8.2 % £ 33.7 £ 33.5
Group Life 5.0 5.3 (5.7) 9.4 10.0 (6.0) 19.0 16.2
Supplemental 6.4 5.7 12.3 11.8 9.5 24.2 15.1 12.8
Total Sales £ 21.9 £ 20.7 5.8 £ 38.4 £ 35.4 8.5 £ 67.8 £ 62.5
Unum UK Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees) £ 8.1 £ 7.8 3.8 % £ 15.3 £ 14.3 7.0 % £ 29.9 £ 27.6
Large Case Market 7.4 7.2 2.8 11.3 11.6 (2.6) 22.8 22.1
Subtotal 15.5 15.0 3.3 26.6 25.9 2.7 52.7 49.7
Supplemental 6.4 5.7 12.3 11.8 9.5 24.2 15.1 12.8
Total Sales £ 21.9 £ 20.7 5.8 £ 38.4 £ 35.4 8.5 £ 67.8 £ 62.5

Certain prior year and prior period amounts in the table above were reclassified to conform to current year presentation.

  1. 1

Unum Group Sales Data for Colonial Life Segment

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change 12/31/2019 12/31/2018
Sales by Product
Accident, Sickness, and Disability $ 45.3 $ 81.2 (44.2) % $ 109.9 $ 153.4 (28.4) % $ 354.4 $ 355.0
Life 16.1 26.0 (38.1) 36.8 45.7 (19.5) 122.7 111.9
Cancer and Critical Illness 10.9 19.7 (44.7) 24.9 36.6 (32.0) 88.9 94.4
Total Sales $ 72.3 $ 126.9 (43.0) $ 171.6 $ 235.7 (27.2) $ 566.0 $ 561.3
Sales by Market Sector
Commercial
Core Market (< 1,000 employees) $ 45.9 $ 81.4 (43.6) % $ 113.5 $ 152.8 (25.7) % $ 345.7 $ 349.0
Large Case Market 10.0 20.0 (50.0) 21.9 34.3 (36.2) 81.4 95.5
Subtotal 55.9 101.4 (44.9) 135.4 187.1 (27.6) 427.1 444.5
Public Sector 16.4 25.5 (35.7) 36.2 48.6 (25.5) 138.9 116.8
Total Sales $ 72.3 $ 126.9 (43.0) $ 171.6 $ 235.7 (27.2) $ 566.0 $ 561.3
  1. 2

Unum Group Consolidated Balance Sheets

June 30 December 31
2020 2019
Assets
Investments
Fixed Maturity Securities $ 48,233.4 $ 47,443.7
Mortgage Loans 2,434.4 2,397.0
Policy Loans 3,684.0 3,779.5
Other Long-term Investments 933.9 844.2
Short-term Investments 2,601.9 1,294.5
Total Investments 57,887.6 55,758.9
Other Assets
Cash and Bank Deposits 165.6 84.1
Accounts and Premiums Receivable 1,625.5 1,602.9
Reinsurance Recoverable 4,786.2 4,780.7
Accrued Investment Income 802.7 693.0
Deferred Acquisition Costs 2,310.8 2,324.0
Goodwill 348.9 351.7
Property and Equipment 518.1 534.1
Other Assets 859.8 884.0
Total Assets $ 69,305.2 $ 67,013.4

Unum Group Consolidated Balance Sheets - Continued

June 30 December 31
2020 2019
Liabilities and Stockholders' Equity
Liabilities
Policy and Contract Benefits $ 1,778.8 $ 1,745.5
Reserves for Future Policy and Contract Benefits 48,335.1 47,780.1
Unearned Premiums 440.8 363.9
Other Policyholders’ Funds 1,649.4 1,599.7
Income Tax Payable 357.9 256.7
Deferred Income Tax 155.6 95.4
Short-term Debt 399.9 399.7
Long-term Debt - Non-recourse 48.6 78.1
Long-term Debt - All Other 3,344.5 2,848.8
Payables for Collateral on Investments 211.0 24.0
Other Liabilities 2,022.2 1,856.5
Total Liabilities 58,743.8 57,048.4
Stockholders’ Equity
Common Stock 30.6 30.6
Additional Paid-in Capital 2,364.1 2,348.1
Accumulated Other Comprehensive Income 327.2 37.3
Retained Earnings 11,019.2 10,728.7
Treasury Stock (3,179.7) (3,179.7)
Total Stockholders’ Equity 10,561.4 9,965.0
Total Liabilities and Stockholders’ Equity $ 69,305.2 $ 67,013.4
  1. 1

Unum Group Deferred Acquisition Costs by Segment

Unum US Unum International Colonial Life Consolidated
Balance 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
Balance at December 31, 2019 1,223.0 26.4 1,074.6 2,324.0
Capitalization 155.1 6.1 150.7 311.9
Amortization (179.7) (3.5) (133.7) (316.9)
Adjustment Related to Unrealized Investment Gains and Losses (2.0) — (4.7) (6.7)
Foreign Currency — (1.5) — (1.5)
Balance at June 30, 2020 $ 1,196.4 $ 27.5 $ 1,086.9 $ 2,310.8
  1. 2

Unum Group Balance Sheets by Segment - June 30, 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 $ 8,390.4 $ 2,349.5 $ 5,358.3 $ 16,098.2 $ 3,312.4 $ 3,369.2 $ 31,875.7 $ 3,232.1 $ 57,887.6
Deferred Acquisition Costs 97.1 78.0 1,021.3 1,196.4 27.5 1,086.9 — — 2,310.8
Goodwill 8.9 — 271.1 280.0 41.2 27.7 — — 348.9
All Other 434.6 328.4 453.1 1,216.1 442.8 284.2 5,948.0 866.8 8,757.9
Total Assets $ 8,931.0 $ 2,755.9 $ 7,103.8 $ 18,790.7 $ 3,823.9 $ 4,768.0 $ 37,823.7 $ 4,098.9 $ 69,305.2
Liabilities
Reserves and Policyholder Benefits $ 7,361.8 $ 1,787.1 $ 4,313.7 $ 13,462.6 $ 2,867.0 $ 2,811.8 $ 33,062.7 $ — $ 52,204.1
Debt — — — — — — 48.6 3,744.4 3,793.0
All Other 131.6 33.3 426.1 591.0 133.2 226.8 160.2 1,635.5 2,746.7
Total Liabilities 7,493.4 1,820.4 4,739.8 14,053.6 3,000.2 3,038.6 33,271.5 5,379.9 58,743.8
Allocated Stockholders' Equity
Other Allocated Stockholders' Equity 1,397.1 890.9 2,125.1 4,413.1 739.3 1,553.2 4,185.6 (1,479.1) 9,412.1
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges 40.5 44.6 238.9 324.0 84.4 176.2 366.6 198.1 1,149.3
Total Allocated Stockholders' Equity 1,437.6 935.5 2,364.0 4,737.1 823.7 1,729.4 4,552.2 (1,281.0) 10,561.4
Total Liabilities and Allocated Stockholders' Equity $ 8,931.0 $ 2,755.9 $ 7,103.8 $ 18,790.7 $ 3,823.9 $ 4,768.0 $ 37,823.7 $ 4,098.9 $ 69,305.2

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 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 Six Months Ended
6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change
Premium Income
Unum US $ 1,522.7 $ 1,504.5 1.2 % $ 3,050.4 $ 3,006.4 1.5 %
Unum International 157.1 158.6 (0.9) 321.7 312.6 2.9
Colonial Life 438.6 420.9 4.2 873.3 840.2 3.9
Closed Block 250.3 259.1 (3.4) 494.7 522.6 (5.3)
2,368.7 2,343.1 1.1 4,740.1 4,681.8 1.2
Net Investment Income
Unum US 176.9 184.1 (3.9) 356.5 366.2 (2.6)
Unum International 26.3 44.8 (41.3) 52.8 69.6 (24.1)
Colonial Life 36.8 37.2 (1.1) 74.5 74.1 0.5
Closed Block 326.3 354.5 (8.0) 662.4 701.1 (5.5)
Corporate 2.7 4.3 (37.2) 7.8 8.6 (9.3)
569.0 624.9 (8.9) 1,154.0 1,219.6 (5.4)
Other Income
Unum US 35.3 36.8 (4.1) 75.5 71.3 5.9
Unum International 0.2 0.3 (33.3) 0.2 0.3 (33.3)
Colonial Life 0.3 0.7 (57.1) 0.6 1.3 (53.8)
Closed Block 13.7 16.5 (17.0) 31.9 34.5 (7.5)
Corporate 0.2 1.7 (88.2) 0.2 1.7 (88.2)
49.7 56.0 (11.3) 108.4 109.1 (0.6)
Total Adjusted Operating Revenue
Unum US 1,734.9 1,725.4 0.6 3,482.4 3,443.9 1.1
Unum International 183.6 203.7 (9.9) 374.7 382.5 (2.0)
Colonial Life 475.7 458.8 3.7 948.4 915.6 3.6
Closed Block 590.3 630.1 (6.3) 1,189.0 1,258.2 (5.5)
Corporate 2.9 6.0 (51.7) 8.0 10.3 (22.3)
$ 2,987.4 $ 3,024.0 (1.2) $ 6,002.5 $ 6,010.5 (0.1)

Unum Group Financial Results by Segment - Continued

Three Months Ended Six Months Ended
6/30/2020 6/30/2019 % Change 6/30/2020 6/30/2019 % Change
Benefits and Expenses
Unum US $ 1,503.0 $ 1,471.1 2.2 % $ 2,988.7 $ 2,937.3 1.7 %
Unum International 168.5 173.0 (2.6) 340.2 322.7 5.4
Colonial Life 384.8 374.4 2.8 776.4 746.0 4.1
Closed Block 553.6 596.4 (7.2) 1,122.6 1,193.5 (5.9)
Corporate 73.7 49.8 48.0 124.7 99.5 25.3
2,683.6 2,664.7 0.7 5,352.6 5,299.0 1.0
Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss)
Unum US 231.9 254.3 (8.8) 493.7 506.6 (2.5)
Unum International 15.1 30.7 (50.8) 34.5 59.8 (42.3)
Colonial Life 90.9 84.4 7.7 172.0 169.6 1.4
Closed Block 36.7 33.7 8.9 66.4 64.7 2.6
Corporate (70.8) (43.8) 61.6 (116.7) (89.2) 30.8
303.8 359.3 (15.4) 649.9 711.5 (8.7)
Income Tax 63.7 72.4 (12.0) 135.7 144.3 (6.0)
Income Before Net Realized Investment Gain (Loss) 240.1 286.9 (16.3) 514.2 567.2 (9.3)
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $8.4; $(1.6); $(22.5); $(1.1)) 25.4 (5.7) N.M. (87.7) (5.1) N.M.
Net Income $ 265.5 $ 281.2 (5.6) $ 426.5 $ 562.1 (24.1)
  1. 1

Unum Group Quarterly Historical Financial Results by Segment

6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18 9/30/18 6/30/18
Premium Income
Unum US $ 1,522.7 $ 1,527.7 $ 1,508.3 $ 1,501.9 $ 1,504.5 $ 1,501.9 $ 1,435.1 $ 1,446.2 $ 1,416.3
Unum International 157.1 164.6 165.6 152.3 158.6 154.0 152.3 138.0 138.9
Colonial Life 438.6 434.7 424.9 419.9 420.9 419.3 410.1 400.0 395.4
Closed Block 250.3 244.4 253.8 257.1 259.1 263.5 265.8 267.6 270.4
2,368.7 2,371.4 2,352.6 2,331.2 2,343.1 2,338.7 2,263.3 2,251.8 2,221.0
Net Investment Income
Unum US 176.9 179.6 189.0 184.2 184.1 182.1 187.7 200.3 196.5
Unum International 26.3 26.5 28.6 24.3 44.8 24.8 31.1 26.4 32.1
Colonial Life 36.8 37.7 37.0 36.9 37.2 36.9 37.0 36.7 40.2
Closed Block 326.3 336.1 356.6 347.3 354.5 346.6 345.8 348.0 345.6
Corporate 2.7 5.1 5.1 6.7 4.3 4.3 7.0 7.8 9.2
569.0 585.0 616.3 599.4 624.9 594.7 608.6 619.2 623.6
Other Income
Unum US 35.3 40.2 36.7 34.8 36.8 34.5 30.0 30.7 28.8
Unum International 0.2 — 0.3 — 0.3 — 0.4 — —
Colonial Life 0.3 0.3 1.2 0.9 0.7 0.6 0.2 0.4 0.3
Closed Block 13.7 18.2 17.8 18.9 16.5 18.0 18.6 18.9 18.9
Corporate 0.2 — 0.5 1.0 1.7 — 1.1 0.1 0.3
49.7 58.7 56.5 55.6 56.0 53.1 50.3 50.1 48.3
Total Adjusted Operating Revenue
Unum US 1,734.9 1,747.5 1,734.0 1,720.9 1,725.4 1,718.5 1,652.8 1,677.2 1,641.6
Unum International 183.6 191.1 194.5 176.6 203.7 178.8 183.8 164.4 171.0
Colonial Life 475.7 472.7 463.1 457.7 458.8 456.8 447.3 437.1 435.9
Closed Block 590.3 598.7 628.2 623.3 630.1 628.1 630.2 634.5 634.9
Corporate 2.9 5.1 5.6 7.7 6.0 4.3 8.1 7.9 9.5
$ 2,987.4 $ 3,015.1 $ 3,025.4 $ 2,986.2 $ 3,024.0 $ 2,986.5 $ 2,922.2 $ 2,921.1 $ 2,892.9

Unum Group Quarterly Historical Financial Results by Segment - Continued

6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18 9/30/18 6/30/18
Benefits and Expenses
Unum US $ 1,503.0 $ 1,485.7 $ 1,470.9 $ 1,459.5 $ 1,471.1 $ 1,466.2 $ 1,404.1 $ 1,406.3 $ 1,390.5
Unum International 168.5 171.7 170.6 152.4 173.0 149.7 153.4 138.3 143.4
Colonial Life 384.8 391.6 375.4 370.5 374.4 371.6 361.9 352.9 351.3
Closed Block 553.6 569.0 582.1 596.4 596.4 597.1 595.4 1,353.1 605.3
Corporate 73.7 51.0 58.2 81.8 49.8 49.7 56.3 55.0 45.0
2,683.6 2,669.0 2,657.2 2,660.6 2,664.7 2,634.3 2,571.1 3,305.6 2,535.5
Income (Loss) Before Income Tax Expense (Benefit) and Net Realized Investment Gain (Loss)
Unum US 231.9 261.8 263.1 261.4 254.3 252.3 248.7 270.9 251.1
Unum International 15.1 19.4 23.9 24.2 30.7 29.1 30.4 26.1 27.6
Colonial Life 90.9 81.1 87.7 87.2 84.4 85.2 85.4 84.2 84.6
Closed Block 36.7 29.7 46.1 26.9 33.7 31.0 34.8 (718.6) 29.6
Corporate (70.8) (45.9) (52.6) (74.1) (43.8) (45.4) (48.2) (47.1) (35.5)
303.8 346.1 368.2 325.6 359.3 352.2 351.1 (384.5) 357.4
Income Tax Expense (Benefit) 63.7 72.0 79.2 62.8 72.4 71.9 69.4 (92.0) 69.8
Income (Loss) Before Net Realized Investment Gain (Loss) 240.1 274.1 289.0 262.8 286.9 280.3 281.7 (292.5) 287.6
Net Realized Investment Gain (Loss) 33.8 (144.0) 9.2 (26.2) (7.3) 1.1 (41.4) 6.7 (2.6)
Tax Expense (Benefit) on Net Realized Investment Gain (Loss) 8.4 (30.9) 2.0 (5.4) (1.6) 0.5 (8.8) (1.1) (0.5)
Net Income (Loss) $ 265.5 $ 161.0 $ 296.2 $ 242.0 $ 281.2 $ 280.9 $ 249.1 $ (284.7) $ 285.5
Net Income (Loss) Per Common Share - Assuming Dilution $ 1.30 $ 0.79 $ 1.44 $ 1.16 $ 1.33 $ 1.31 $ 1.15 $ (1.30) $ 1.29
  1. 1

Unum Group Financial Results for Unum US Segment

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income $ 1,522.7 $ 1,504.5 $ 3,050.4 $ 3,006.4 $ 6,016.6 $ 5,736.4
Net Investment Income 176.9 184.1 356.5 366.2 739.4 778.7
Other Income 35.3 36.8 75.5 71.3 142.8 118.5
Total 1,734.9 1,725.4 3,482.4 3,443.9 6,898.8 6,633.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 1,036.8 1,017.1 2,021.4 1,997.8 4,022.1 3,856.5
Commissions 154.4 157.8 308.7 320.8 628.5 620.6
Deferral of Acquisition Costs (75.5) (83.4) (155.1) (171.0) (334.5) (344.0)
Amortization of Deferred Acquisition Costs 72.0 82.6 179.7 186.5 344.0 315.1
Other Expenses 315.3 297.0 634.0 603.2 1,207.6 1,170.8
Total 1,503.0 1,471.1 2,988.7 2,937.3 5,867.7 5,619.0
Adjusted Operating Income $ 231.9 $ 254.3 $ 493.7 $ 506.6 $ 1,031.1 $ 1,014.6
Operating Ratios (% of Premium Income):
Benefit Ratio 68.1 % 67.6 % 66.3 % 66.5 % 66.9 % 67.2 %
Other Expense Ratio 20.7 % 19.7 % 20.8 % 20.1 % 20.1 % 20.4 %
Adjusted Operating Income Ratio 15.2 % 16.9 % 16.2 % 16.9 % 17.1 % 17.7 %

Unum Group Financial Results for Unum US Group Disability

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Group Long-term Disability $ 461.0 $ 457.2 $ 924.0 $ 910.1 $ 1,823.1 $ 1,766.2
Group Short-term Disability 203.6 187.6 406.8 376.3 768.8 706.3
Total Premium Income 664.6 644.8 1,330.8 1,286.4 2,591.9 2,472.5
Net Investment Income 96.5 98.9 189.9 198.9 401.5 432.7
Other Income 33.8 34.4 72.2 66.6 133.8 109.0
Total 794.9 778.1 1,592.9 1,551.9 3,127.2 3,014.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 484.1 481.5 971.5 960.6 1,927.9 1,880.7
Commissions 48.1 48.4 98.0 98.7 193.8 186.5
Deferral of Acquisition Costs (11.7) (13.0) (24.5) (24.8) (49.5) (48.2)
Amortization of Deferred Acquisition Costs 13.2 13.0 26.5 25.2 50.7 44.7
Other Expenses 185.2 164.6 369.1 326.0 672.1 612.2
Total 718.9 694.5 1,440.6 1,385.7 2,795.0 2,675.9
Adjusted Operating Income $ 76.0 $ 83.6 $ 152.3 $ 166.2 $ 332.2 $ 338.3
Operating Ratios (% of Premium Income):
Benefit Ratio 72.8 % 74.7 % 73.0 % 74.7 % 74.4 % 76.1 %
Other Expense Ratio 27.9 % 25.5 % 27.7 % 25.3 % 25.9 % 24.8 %
Adjusted Operating Income Ratio 11.4 % 13.0 % 11.4 % 12.9 % 12.8 % 13.7 %
Persistency:
Group Long-term Disability 89.4 % 90.5 % 90.7 % 90.9 %
Group Short-term Disability 86.9 % 90.3 % 89.8 % 87.2 %
  1. 1

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

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Group Life $ 414.6 $ 420.0 $ 829.1 $ 834.4 $ 1,662.0 $ 1,583.7
Accidental Death & Dismemberment 41.7 41.7 83.4 82.7 165.7 156.3
Total Premium Income 456.3 461.7 912.5 917.1 1,827.7 1,740.0
Net Investment Income 23.3 27.0 49.0 52.6 107.4 106.5
Other Income 0.5 0.7 1.0 1.3 2.7 4.7
Total 480.1 489.4 962.5 971.0 1,937.8 1,851.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 373.2 336.8 695.3 659.7 1,314.1 1,237.7
Commissions 36.9 37.8 73.3 75.4 147.7 141.1
Deferral of Acquisition Costs (8.4) (10.1) (17.9) (19.2) (37.8) (38.2)
Amortization of Deferred Acquisition Costs 9.8 9.2 19.7 18.7 38.1 35.9
Other Expenses 49.2 53.0 102.3 106.3 209.0 214.6
Total 460.7 426.7 872.7 840.9 1,671.1 1,591.1
Adjusted Operating Income $ 19.4 $ 62.7 $ 89.8 $ 130.1 $ 266.7 $ 260.1
Operating Ratios (% of Premium Income):
Benefit Ratio 81.8 % 72.9 % 76.2 % 71.9 % 71.9 % 71.1 %
Other Expense Ratio 10.8 % 11.5 % 11.2 % 11.6 % 11.4 % 12.3 %
Adjusted Operating Income Ratio 4.3 % 13.6 % 9.8 % 14.2 % 14.6 % 14.9 %
Persistency:
Group Life 88.6 % 91.2 % 90.6 % 91.2 %
Accidental Death & Dismemberment 87.8 % 90.1 % 89.9 % 89.9 %
  1. 2

Unum Group Financial Results for Unum US Supplemental and Voluntary

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Individual Disability $ 113.1 $ 108.5 $ 222.6 $ 219.2 $ 440.7 $ 425.4
Voluntary Benefits 224.0 228.6 454.4 463.0 910.2 895.7
Dental and Vision 64.7 60.9 130.1 120.7 246.1 202.8
Total Premium Income 401.8 398.0 807.1 802.9 1,597.0 1,523.9
Net Investment Income 57.1 58.2 117.6 114.7 230.5 239.5
Other Income 1.0 1.7 2.3 3.4 6.3 4.8
Total 459.9 457.9 927.0 921.0 1,833.8 1,768.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 179.5 198.8 354.6 377.5 780.1 738.1
Commissions 69.4 71.6 137.4 146.7 287.0 293.0
Deferral of Acquisition Costs (55.4) (60.3) (112.7) (127.0) (247.2) (257.6)
Amortization of Deferred Acquisition Costs 49.0 60.4 133.5 142.6 255.2 234.5
Other Expenses 80.9 79.4 162.6 170.9 326.5 344.0
Total 323.4 349.9 675.4 710.7 1,401.6 1,352.0
Adjusted Operating Income $ 136.5 $ 108.0 $ 251.6 $ 210.3 $ 432.2 $ 416.2
Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability 52.8 % 53.5 % 52.5 % 51.7 % 50.9 % 50.6 %
Voluntary Benefits 43.1 % 42.5 % 37.8 % 38.9 % 41.8 % 42.8 %
Dental and Vision 36.0 % 71.6 % 50.7 % 69.7 % 71.1 % 68.5 %
Other Expense Ratio 20.1 % 19.9 % 20.1 % 21.3 % 20.4 % 22.6 %
Adjusted Operating Income Ratio 34.0 % 27.1 % 31.2 % 26.2 % 27.1 % 27.3 %
Persistency:
Individual Disability 90.1 % 90.3 % 89.8 % 90.3 %
Voluntary Benefits 73.0 % 72.7 % 73.2 % 75.9 %
Dental and Vision 81.7 % 84.7 % 82.6 % 84.5 %
  1. 3

Unum Group Financial Results for Unum International Segment

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Unum UK
Group Long-term Disability $ 89.0 $ 89.6 $ 179.8 $ 177.5 $ 353.4 $ 358.9
Group Life 25.1 28.8 56.0 56.0 115.7 110.8
Supplemental 24.6 22.4 48.5 44.1 89.5 81.7
Unum Poland 18.4 17.8 37.4 35.0 71.9 17.4
Total Premium Income 157.1 158.6 321.7 312.6 630.5 568.8
Net Investment Income 26.3 44.8 52.8 69.6 122.5 117.2
Other Income 0.2 0.3 0.2 0.3 0.6 0.4
Total 183.6 203.7 374.7 382.5 753.6 686.4
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 124.8 130.8 253.4 237.3 469.8 419.8
Commissions 12.1 11.5 24.4 23.6 48.7 39.1
Deferral of Acquisition Costs (3.1) (3.7) (6.1) (6.6) (12.8) (8.1)
Amortization of Deferred Acquisition Costs 1.7 1.8 3.5 3.6 7.1 8.2
Other Expenses 33.0 32.6 65.0 64.8 132.9 113.5
Total 168.5 173.0 340.2 322.7 645.7 572.5
Adjusted Operating Income $ 15.1 $ 30.7 $ 34.5 $ 59.8 $ 107.9 $ 113.9

Certain prior year and prior period amounts in the table above were reclassified to conform to current year presentation.

Unum Group Financial Results for Unum UK

Three Months Ended Six Months Ended Year Ended
(in millions of pounds, except exchange rate) 6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Group Long-term Disability £ 71.6 £ 69.7 £ 142.6 £ 137.2 £ 276.8 £ 269.0
Group Life 20.2 22.5 44.4 43.3 90.7 83.0
Supplemental 19.9 17.4 38.5 34.1 70.0 61.3
Total Premium Income 111.7 109.6 225.5 214.6 437.5 413.3
Net Investment Income 19.9 33.5 39.2 51.3 90.5 86.5
Other Income — 0.1 — 0.1 0.2 —
Total 131.6 143.2 264.7 266.0 528.2 499.8
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 92.2 93.8 183.8 167.5 335.5 307.4
Commissions 7.1 6.6 14.2 13.6 28.6 27.1
Deferral of Acquisition Costs (1.1) (1.8) (2.3) (2.9) (5.4) (5.0)
Amortization of Deferred Acquisition Costs 1.2 1.3 2.6 2.7 5.4 6.1
Other Expenses 22.1 20.6 42.6 40.8 83.7 80.2
Total 121.5 120.5 240.9 221.7 447.8 415.8
Adjusted Operating Income £ 10.1 £ 22.7 £ 23.8 £ 44.3 £ 80.4 £ 84.0
Weighted Average Pound/Dollar Exchange Rate 1.248 1.286 1.265 1.296 1.279 1.336
Operating Ratios (% of Premium Income):
Benefit Ratio 82.5 % 85.6 % 81.5 % 78.1 % 76.7 % 74.4 %
Other Expense Ratio 19.8 % 18.8 % 18.9 % 19.0 % 19.1 % 19.4 %
Adjusted Operating Income Ratio 9.0 % 20.7 % 10.6 % 20.6 % 18.4 % 20.3 %
Persistency:
Group Long-term Disability 87.7 % 89.5 % 89.9 % 87.8 %
Group Life 83.0 % 88.4 % 89.0 % 88.5 %
Supplemental 90.5 % 92.2 % 89.9 % 93.1 %
  1. 1

Unum Group Financial Results for Colonial Life Segment

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Accident, Sickness, and Disability $ 250.3 $ 242.4 $ 499.6 $ 484.6 $ 973.4 $ 929.3
Life 96.8 88.3 190.6 175.9 351.6 328.4
Cancer and Critical Illness 91.5 90.2 183.1 179.7 360.0 346.1
Total Premium Income 438.6 420.9 873.3 840.2 1,685.0 1,603.8
Net Investment Income 36.8 37.2 74.5 74.1 148.0 151.2
Other Income 0.3 0.7 0.6 1.3 3.4 1.2
Total 475.7 458.8 948.4 915.6 1,836.4 1,756.2
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 222.4 216.2 450.4 430.4 865.0 824.9
Commissions 87.1 94.9 180.1 189.3 364.5 364.6
Deferral of Acquisition Costs (71.3) (83.2) (150.7) (166.4) (311.3) (315.9)
Amortization of Deferred Acquisition Costs 67.0 67.2 133.7 132.1 258.8 242.2
Other Expenses 79.6 79.3 162.9 160.6 314.9 305.2
Total 384.8 374.4 776.4 746.0 1,491.9 1,421.0
Adjusted Operating Income $ 90.9 $ 84.4 $ 172.0 $ 169.6 $ 344.5 $ 335.2
Operating Ratios (% of Premium Income):
Benefit Ratio 50.7 % 51.4 % 51.6 % 51.2 % 51.3 % 51.4 %
Other Expense Ratio 18.1 % 18.8 % 18.6 % 19.1 % 18.7 % 19.0 %
Adjusted Operating Income Ratio 20.7 % 20.1 % 19.7 % 20.2 % 20.4 % 20.9 %
Persistency:
Accident, Sickness, and Disability 74.0 % 73.2 % 73.2 % 74.2 %
Life 83.7 % 83.3 % 83.4 % 83.6 %
Cancer and Critical Illness 81.2 % 81.2 % 80.6 % 82.4 %

Unum Group Financial Results for Closed Block Segment

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Premium Income
Long-term Care $ 165.7 $ 162.6 $ 330.5 $ 325.6 $ 651.6 $ 648.3
Individual Disability 83.1 94.4 160.1 192.5 374.3 420.8
All Other 1.5 2.1 4.1 4.5 7.6 8.0
Total Premium Income 250.3 259.1 494.7 522.6 1,033.5 1,077.1
Net Investment Income 326.3 354.5 662.4 701.1 1,404.9 1,377.1
Other Income 13.7 16.5 31.9 34.5 71.3 75.4
Total 590.3 630.1 1,189.0 1,258.2 2,509.7 2,529.6
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 498.8 538.5 1,012.4 1,077.9 2,139.3 2,919.2
Commissions 19.4 20.2 39.0 40.8 81.0 84.1
Interest and Debt Expense 0.7 1.4 1.5 3.0 5.3 6.9
Other Expenses 34.7 36.3 69.7 71.8 146.4 144.7
Total 553.6 596.4 1,122.6 1,193.5 2,372.0 3,154.9
Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses 36.7 33.7 66.4 64.7 137.7 (625.3)
Long-term Care Reserve Increase — — — — — 750.8
Adjusted Operating Income $ 36.7 $ 33.7 $ 66.4 $ 64.7 $ 137.7 $ 125.5
Interest Adjusted Loss Ratios:
Long-term Care* 67.0 % 87.4 % 74.0 % 88.0 % 88.1 % 206.8 %
Long-term Care Excluding Reserve Increase 91.0 %
Individual Disability 89.5 % 81.3 % 87.1 % 80.7 % 78.8 % 80.4 %
Operating Ratios (% of Premium Income):
Other Expense Ratio 13.9 % 14.0 % 14.1 % 13.7 % 14.2 % 13.4 %
Income (Loss) Ratio (58.1) %
Adjusted Operating Income Ratio 14.7 % 13.0 % 13.4 % 12.4 % 13.3 % 11.7 %
Persistency:
Long-term Care 95.3 % 95.6 % 95.7 % 95.8 %
Individual Disability 88.8 % 88.3 % 88.1 % 88.3 %

*The interest-adjusted loss ratio for the rolling twelve months ended June 30, 2020 was 81.1 percent.

Unum Group Financial Results for Corporate Segment

Three Months Ended Six Months Ended Year Ended
6/30/2020 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018
Adjusted Operating Revenue
Net Investment Income $ 2.7 $ 4.3 $ 7.8 $ 8.6 $ 20.5 $ 29.5
Other Income 0.2 1.7 0.2 1.7 3.1 2.7
Total 2.9 6.0 8.0 10.3 23.6 32.2
Interest, Debt, and Other Expenses 73.7 49.8 124.7 99.5 239.5 203.3
Loss Before Income Tax and Net Realized Investment Gains and Losses (70.8) (43.8) (116.7) (89.2) (215.9) (171.1)
Impairment Loss on ROU Asset 12.7 — 12.7 — — —
Cost Related to Early Retirement of Debt — — — — 27.3 —
Adjusted Operating Loss $ (58.1) $ (43.8) $ (104.0) $ (89.2) $ (188.6) $ (171.1)

Unum Group Reserves

June 30, 2020
Gross Total Reinsurance Ceded
Policy Reserves Claim Reserves Total Net
% Incurred IBNR % Total
Group Disability $ — — % $ 5,717.2 $ 736.8 28.3 % $ 6,454.0 $ 60.3 $ 6,393.7
Group Life and Accidental Death & Dismemberment 59.5 0.3 712.5 232.0 4.1 1,004.0 5.1 998.9
Individual Disability 489.6 2.4 1,412.0 142.5 6.8 2,044.1 221.0 1,823.1
Voluntary Benefits 1,711.2 8.2 46.0 54.9 0.4 1,812.1 25.8 1,786.3
Dental and Vision — — — 12.2 0.1 12.2 0.1 12.1
Unum US Segment 2,260.3 10.9 7,887.7 1,178.4 39.7 11,326.4 312.3 11,014.1
Unum International Segment 186.5 0.9 1,870.7 121.1 8.7 2,178.3 85.0 2,093.3
Colonial Life Segment 2,288.3 11.0 316.2 120.0 1.9 2,724.5 5.1 2,719.4
Individual Disability 224.8 1.1 8,549.2 158.2 38.1 8,932.2 1,679.6 7,252.6
Long-term Care 10,063.7 48.3 2,088.5 261.1 10.3 12,413.3 44.1 12,369.2
Other 5,787.9 27.8 174.1 117.4 1.3 6,079.4 5,090.9 988.5
Closed Block Segment 16,076.4 77.2 10,811.8 536.7 49.7 27,424.9 6,814.6 20,610.3
Subtotal $ 20,811.5 100.0 % $ 20,886.4 $ 1,956.2 100.0 % 43,654.1 7,217.0 36,437.1
Adjustment Related to Unrealized Investment Gains and Losses 6,459.8 464.5 5,995.3
Consolidated $ 50,113.9 $ 7,681.5 $ 42,432.4

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.

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

6/30/2020 12/31/2019
Fixed Maturity Securities (Fair Value) Selected Statistics
Public 31,370.0 65.2 % Earned Book Yield 4.62 % 5.00 %
Asset-Backed Securities 0.3 Average Duration (in years) 7.89 7.91
Residential Mortgage-Backed Securities 2.6
Commercial Mortgage-Backed Securities 0.1
Private Placements 12.5
High Yield 7.1
Government Securities 5.0
Municipal Securities (1) 7.2
Redeemable Preferred Stocks —
Total 48,233.4 100.0 %
Fair Value
Quality Ratings of Fixed Maturity Securities Schedule BA and Non-Current
Aaa % 6.7 % Total Non-Current Investments $ 27.9 $ 30.5
Aa 9.7 Total Schedule BA Assets $ 710.3 $ 675.1
A 29.2
Baa 47.3
Below Baa 7.1
Total % 100.0 %
(1) Includes 0.4 million of high yield taxable municipals.

All values are in US Dollars.

Unum Group Investments at June 30, 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 $ 3,371.9 $ 381.2 $ 295.9 $ 24.0 $ 3,076.0 $ 405.2
Capital Goods 4,410.6 644.9 160.3 8.7 4,250.3 653.6
Communications 3,128.9 601.3 236.3 17.1 2,892.6 618.4
Consumer Cyclical 1,592.0 202.5 209.4 8.9 1,382.6 211.4
Consumer Non-Cyclical 7,884.2 1,362.6 372.9 18.6 7,511.3 1,381.2
Energy 4,449.7 436.6 783.9 101.8 3,665.8 538.4
Financial Institutions 3,793.0 490.1 163.1 1.7 3,629.9 491.8
Mortgage/Asset-Backed 1,467.8 133.1 40.6 0.2 1,427.2 133.3
Sovereigns 1,068.8 248.1 10.9 1.4 1,057.9 249.5
Technology 1,890.2 202.0 115.0 9.7 1,775.2 211.7
Transportation 2,404.1 321.0 250.4 28.0 2,153.7 349.0
U.S. Government Agencies and Municipalities 4,849.2 807.8 108.8 4.1 4,740.4 811.9
Public Utilities 7,923.0 1,591.6 89.5 7.2 7,833.5 1,598.8
Total $ 48,233.4 $ 7,422.8 $ 2,837.0 $ 231.4 $ 45,396.4 $ 7,654.2
Fixed Maturity Securities - Energy Classification - Unrealized Gain (Loss) Position
Midstream $ 2,154.8 $ 207.8 $ 284.9 $ 24.6 $ 1,869.9 $ 232.4
Oil and Gas-Independent 1,165.5 51.0 449.6 67.5 715.9 118.5
Oil Field 83.1 2.4 25.5 4.6 57.6 7.0
Oil-Integrated 741.9 137.6 23.9 5.1 718.0 142.7
Oil-Refining 268.5 36.9 — — 268.5 36.9
Other Energy 35.9 0.9 — — 35.9 0.9
Total $ 4,449.7 $ 436.6 $ 783.9 $ 101.8 $ 3,665.8 $ 538.4
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 $ 438.7 $ 18.0 $ 500.5 $ 16.1
91 through 180 days 867.5 45.7 746.6 82.3
181 through 270 days 20.9 1.9 9.9 4.2
271 days to 1 year 2.8 0.1 29.9 5.5
Greater than 1 year 23.4 2.4 196.8 55.2
Total $ 1,353.3 $ 68.1 $ 1,483.7 $ 163.3

15.1

Appendix to Statistical Supplement

2020 Significant Items

•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.

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.

Appendix to Statistical Supplement - Continued

Non-GAAP Financial Measures

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

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

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

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

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

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

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

For a reconciliation of the most directly comparable GAAP measures to these non-GAAP financial measures, refer to the "Reconciliation of Non-GAAP Financial Measures" beginning on page 16.2, other than book value per common share, which is presented on page 2.

  1. 1

Reconciliation of Non-GAAP Financial Measures

Three Months Ended
June 30 March 31 December 31 September 30 June 30 March 31 December 31 September 30 June 30
2020 2019 2018
Total Revenue $ 3,021.2 $ 2,871.1 $ 3,034.6 $ 2,960.0 $ 3,016.7 $ 2,987.6 $ 2,880.8 $ 2,927.8 $ 2,890.3
Excluding:
Net Realized Investment Gain (Loss) 33.8 (144.0) 9.2 (26.2) (7.3) 1.1 (41.4) 6.7 (2.6)
Adjusted Operating Revenue $ 2,987.4 $ 3,015.1 $ 3,025.4 $ 2,986.2 $ 3,024.0 $ 2,986.5 $ 2,922.2 $ 2,921.1 $ 2,892.9
  1. 2

Reconciliation of Non-GAAP Financial Measures - Continued

After-Tax Adjusted Operating Income (Loss) Average Allocated Equity^(1)^ Annualized Adjusted Operating Return on Equity
Three Months Ended June 30, 2020
Unum US $ 183.3 $ 4,457.8 16.4 %
Unum International 12.6 733.2 6.9 %
Colonial Life 71.7 1,552.5 18.5 %
Core Operating Segments 267.6 6,743.5 15.9 %
Closed Block 26.3 4,142.9
Corporate (43.8) (1,581.7)
Total $ 250.1 $ 9,304.7 10.8 %
Three Months Ended June 30, 2019
Unum US $ 200.8 $ 4,533.3 17.7 %
Unum International 26.1 753.9 13.8 %
Colonial Life 66.6 1,527.6 17.4 %
Core Operating Segments 293.5 6,814.8 17.2 %
Closed Block 24.3 3,762.9
Corporate (30.9) (1,688.3)
Total $ 286.9 $ 8,889.4 12.9 %

^(1)^ Excludes net unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.6.

  1. 3

Reconciliation of Non-GAAP Financial Measures - Continued

After-Tax Adjusted Operating Income (Loss) Average Allocated Equity^(2)^ Annualized Adjusted Operating Return on Equity
Six Months Ended June 30, 2020
Unum US $ 390.2 $ 4,458.6 17.5 %
Unum International 28.4 755.6 7.5 %
Colonial Life 135.6 1,550.0 17.5 %
Core Operating Segments 554.2 6,764.2 16.4 %
Closed Block 47.6 4,126.8
Corporate (77.6) (1,613.5)
Total $ 524.2 $ 9,277.5 11.3 %
Six Months Ended June 30, 2019
Unum US $ 400.4 $ 4,551.7 17.6 %
Unum International 50.8 746.9 13.6 %
Colonial Life 134.0 1,543.3 17.4 %
Core Operating Segments 585.2 6,841.9 17.1 %
Closed Block 48.0 3,722.7
Corporate (66.0) (1,750.3)
Total $ 567.2 $ 8,814.3 12.9 %

^(2)^Excludes unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.6. Due to the implementation of a FASB update for which the beginning balances of 2020 and 2019 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2020 and 2019 using internally allocated equity that reflects the adjusted beginning balances at January 1, 2020 and 2019, respectively. As a result, average equity for the six months ended June 30, 2020 and 2019 for certain of our segments will not compute using the historical allocated equity at December 31, 2019 and 2018, respectively.

  1. 4

Reconciliation of Non-GAAP Financial Measures - Continued

After-Tax Adjusted Operating Income (Loss) Average Allocated Equity^(3)^ Adjusted Operating Return on Equity
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 %

^(3)^Excludes unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.6. Due to the implementation of a FASB update for which the beginning balances of 2019 and 2018 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2019 and 2018 using internally allocated equity that reflects the adjusted beginning balances at January 1, 2019 and 2018, respectively. As a result, average equity for the years ended December 31, 2019 and 2018 for certain of our segments will not compute using the historical allocated equity at December 31, 2018 and 2017, respectively.

  1. 5

Reconciliation of Non-GAAP Financial Measures - Continued

Average allocated equity is computed as follows:

6/30/2020 3/31/2020 12/31/2019 6/30/2019 3/31/2019 12/31/2018 12/31/2017
Total Stockholders' Equity $ 10,561.4 $ 9,803.1 $ 9,965.0 $ 9,453.1 $ 9,060.5 $ 8,621.8 $ 9,574.9
Excluding:
Net Unrealized Gain (Loss) on Securities 963.1 395.3 615.9 286.9 (0.1) (312.4) 607.8
Net Gain on Hedges 186.2 210.6 187.8 218.0 230.1 250.6 282.3
Total Adjusted Stockholders' Equity $ 9,412.1 $ 9,197.2 $ 9,161.3 $ 8,948.2 $ 8,830.5 $ 8,683.6 $ 8,684.8
Three Months Ended Six Months Ended Twelve Months Ended Three Months Ended Six Months Ended Twelve Months Ended
6/30/2020 12/31/2019 6/30/2019 12/31/2018
Average Adjusted Stockholders' Equity $ 9,304.7 $ 9,277.5 $ 8,920.8 $ 8,889.4 $ 8,814.3 $ 8,691.6
  1. 6

Reconciliation of Non-GAAP Financial Measures - Continued

Three Months Ended June 30 Six Months Ended June 30
2020 2019 2020 2019
(in millions) per share* (in millions) per share* (in millions) per share* (in millions) per share*
Net Income $ 265.5 $ 1.30 $ 281.2 $ 1.33 $ 426.5 $ 2.10 $ 562.1 $ 2.64
Excluding:
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $8.4; $(1.6); $(22.5); $(1.1)) 25.4 0.12 (5.7) (0.03) (87.7) (0.43) (5.1) (0.03)
Impairment Loss on ROU Asset (net of tax benefit of $2.7; $—; $2.7; $—) (10.0) (0.05) — — (10.0) (0.05) — —
After-tax Adjusted Operating Income $ 250.1 $ 1.23 $ 286.9 $ 1.36 $ 524.2 $ 2.58 $ 567.2 $ 2.67
Year Ended December 31
--- --- --- --- --- --- --- --- ---
2019 2018
(in millions) per share * (in millions) per share *
Net Income $ 1,100.3 $ 5.24 $ 523.4 $ 2.38
Excluding:
Net Realized Investment Loss (net of tax benefit of $4.5; $11.0) (18.7) (0.09) (28.5) (0.12)
Cost Related to Early Retirement of Debt (net of tax benefit of $5.7; $—) (21.6) (0.11) — —
Long-term Care Reserve Increase (net of tax benefit of $—; $157.7) — — (593.1) (2.70)
After-tax Adjusted Operating Income $ 1,140.6 $ 5.44 $ 1,145.0 $ 5.20

*Assuming Dilution.

  1. 7

Reconciliation of Non-GAAP Financial Measures - Continued

June 30 December 31
2020 2019 2019 2018
Debt $ 3,793.0 $ 3,341.2 $ 3,326.6 $ 2,971.3
Including:
Lease Liability 113.0 117.5 114.7 —
Excluding:
Non-recourse Debt 48.6 107.6 78.1 137.1
Adjusted Debt and Lease Liability $ 3,857.4 $ 3,351.1 $ 3,363.2 $ 2,834.2
Total Stockholders' Equity $ 10,561.4 $ 9,453.1 $ 9,965.0 $ 8,621.8
Excluding:
Net Unrealized Gain (Loss) on Securities and Net Gain on Hedges 1,149.3 504.9 803.7 (61.8)
Northwind Capital 987.8 970.1 984.6 953.1
Equity, As Adjusted 8,424.3 7,978.1 8,176.7 7,730.5
Debt, As Adjusted and Lease Liability 3,857.4 3,351.1 3,363.2 2,834.2
Total Adjusted Capital $ 12,281.7 $ 11,329.2 $ 11,539.9 $ 10,564.7
Leverage Ratio^(4)^ 31.4 % 29.6 % 29.1 % 26.8 %

^(4)^ 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

Report a Problem

Category
Description
Email (optional, for follow-up)