EX-99.2 3 unm09302021exhibit992.htm EX-99.2 Document

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Unum Group
Statistical Supplement Third Quarter 2021

 TABLE OF CONTENTS
(in millions of dollars, except share data and where noted)
Interim Results are Unaudited





Unum Group Financial Highlights

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Consolidated U.S. GAAP Results¹
Premium Income$2,353.7 $2,318.1 $7,106.4 $7,058.2 $9,378.1 $9,365.6 
Adjusted Operating Revenue$2,969.8 $2,991.9 $8,949.3 $8,994.4 $11,963.0 $12,022.1 
Net Realized Investment Gain (Loss)(0.1)4.4 85.4 (105.8)1,199.1 (23.2)
Revenue$2,969.7 $2,996.3 $9,034.7 $8,888.6 $13,162.1 $11,998.9 
Net Income$328.6 $231.1 $664.5 $657.6 $793.0 $1,100.3 
Net Income Per Common Share:
Basic $1.61 $1.13 $3.25 $3.23 $3.89 $5.25 
Assuming Dilution $1.60 $1.13 $3.24 $3.23 $3.89 $5.24 
Assets$70,597.9 $69,616.0 $70,625.8 $67,013.4 
Stockholders' Equity$11,118.2 $10,892.2 $10,871.0 $9,965.0 
Adjusted Operating Return on Equity
Unum US6.2 %13.4 %8.9 %16.0 %14.6 %18.0 %
Unum International11.8 %2.6 %10.4 %5.8 %6.5 %11.7 %
Colonial Life16.1 %18.4 %16.4 %17.6 %16.7 %17.5 %
Core Operating Segments9.1 %13.4 %10.8 %15.2 %14.1 %17.2 %
Consolidated8.3 %10.3 %9.5 %10.9 %10.7 %12.8 %

Traditional U.S. Life Insurance Companies' Statutory Results2
Net Gain from Operations, After Tax$117.1 $217.9 $431.3 $871.0 $726.2 $1,027.2 
Net Realized Investment Gain (Loss), After Tax68.9 (5.6)87.3 (90.0)(79.4)(45.1)
Net Income$186.0 $212.3 $518.6 $781.0 $646.8 $982.1 
Capital and Surplus$3,830.9 $3,729.3 $3,875.0 $3,644.4 
Weighted Average Risk-based Capital Ratio~380%~ 380%~ 365%~ 365%

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.
1


Unum Group Capital Metrics

9/30/20219/30/202012/31/202012/31/2019
(in millions)per share(in millions)per share(in millions)per share(in millions)per share
Total Stockholders' Equity (Book Value)$11,118.2 $54.39 $10,892.2 $53.50 $10,871.0 $53.37 $9,965.0 $49.10 
Excluding:
Net Unrealized Gain on Securities836.0 4.09 1,104.5 5.42 1,067.7 5.24 615.9 3.03 
Net Gain on Hedges69.5 0.34 158.7 0.78 97.8 0.48 187.8 0.93 
Subtotal10,212.7 49.96 9,629.0 47.30 9,705.5 47.65 9,161.3 45.14 
Excluding:
Foreign Currency Translation Adjustment(275.2)(1.35)(313.7)(1.54)(261.3)(1.28)(281.6)(1.39)
Subtotal10,487.9 51.31 9,942.7 48.84 9,966.8 48.93 9,442.9 46.53 
Excluding:
Unrecognized Pension and Postretirement Benefit Costs(516.4)(2.53)(471.9)(2.32)(530.0)(2.61)(484.8)(2.39)
Total Stockholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)$11,004.3 $53.84 $10,414.6 $51.16 $10,496.8 $51.54 $9,927.7 $48.92 
Dividends to Stockholders$179.3 $0.87 $175.1 $0.86 $233.2 $1.14 $231.3 $1.09 

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Shares Repurchased (millions)— — — — — 12.3 
Cost of Shares Repurchased (millions)(1)
$— $— $— $— $— $400.4 
Price (UNM closing price on last trading day of period)$25.06 $16.83 $22.94 $29.16 
Leverage Ratio25.7 %28.6 %26.2 %29.1 %
Holding Company Cash and Marketable Securities$1,638 $1,178 $1,512 $863 

(1) Includes commissions of $0.4 million for the year ended December 31, 2019.

2


Unum Group Ratings


AM BestFitchMoody'sS&P
OutlookStableStableNegativeStable
Issuer Credit RatingsbbbBBB-Baa3BBB
Financial Strength Ratings
Provident Life and Accident Insurance CompanyAA-A3A
Unum Life Insurance Company of AmericaAA-A3A
Colonial Life & Accident Insurance CompanyAA-A3A
The Paul Revere Life Insurance CompanyAA-A3A
Starmount Life Insurance CompanyANRNRNR
Unum Insurance CompanyA-A-A3NR
Unum LimitedNRNRNRA-

NR = not rated


3


Unum Group Consolidated Statements of Income

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Revenue
Premium Income$2,353.7 $2,318.1 $7,106.4 $7,058.2 $9,378.1 $9,365.6 
Net Investment Income550.2 613.2 1,662.4 1,767.2 2,360.7 2,435.3 
Net Realized Investment Gain (Loss)(0.1)4.4 85.4 (105.8)1,199.1 (23.2)
Other Income65.9 60.6 180.5 169.0 224.2 221.2 
Total Revenue2,969.7 2,996.3 9,034.7 8,888.6 13,162.1 11,998.9 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits1,753.9 1,888.6 5,659.2 5,626.2 8,972.9 7,496.2 
Commissions258.3 258.3 777.9 810.5 1,057.3 1,122.7 
Interest and Debt Expense - Non-recourse Debt— 0.4 — 1.9 3.1 5.3 
Interest and Debt Expense - All Other Debt44.7 49.0 134.4 140.7 185.1 172.1 
Cost Related to Early Retirement of Debt— — 67.3 — — 27.3 
Deferral of Acquisition Costs(128.6)(134.9)(388.9)(446.8)(576.2)(658.6)
Amortization of Deferred Acquisition Costs138.4 149.7 440.8 466.6 606.1 609.9 
Other Expenses493.1 485.6 1,472.7 1,450.2 1,949.8 1,841.9 
Total Benefits and Expenses2,559.8 2,696.7 8,163.4 8,049.3 12,198.1 10,616.8 
Income Before Income Tax409.9 299.6 871.3 839.3 964.0 1,382.1 
Income Tax81.3 68.5 206.8 181.7 171.0 281.8 
Net Income$328.6 $231.1 $664.5 $657.6 $793.0 $1,100.3 
Weighted Average Shares Outstanding
Basic204.6 203.8 204.4 203.6 203.6 209.7 
Assuming Dilution205.1 203.9 205.1 203.6 203.8 209.9 
Actual Number of Shares Outstanding204.4 203.6 203.7 202.9 


4


Unum Group Sales Data for Unum US Segment

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/2020% Change9/30/20219/30/2020% Change12/31/202012/31/2019
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability$26.2 $29.8 (12.1)%$99.3 $116.4 (14.7)%$239.7 $241.5 
Group Short-term Disability21.6 15.2 42.1 76.9 59.0 30.3 158.7 159.2 
Group Life and AD&D26.6 31.3 (15.0)120.6 116.0 4.0 224.3 258.3 
Subtotal74.4 76.3 (2.5)296.8 291.4 1.9 622.7 659.0 
Supplemental and Voluntary
Individual Disability20.9 17.0 22.9 52.8 53.9 (2.0)71.4 75.9 
Voluntary Benefits34.0 29.9 13.7 178.7 205.5 (13.0)241.6 300.6 
Dental and Vision12.6 8.5 48.2 33.6 32.0 5.0 63.9 74.6 
Subtotal67.5 55.4 21.8 265.1 291.4 (9.0)376.9 451.1 
Total Sales$141.9 $131.7 7.7 $561.9 $582.8 (3.6)$999.6 $1,110.1 
Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees)$45.9 $46.7 (1.7)%$187.5 $178.5 5.0 %$377.0 $370.8 
Large Case Market28.5 29.6 (3.7)109.3 112.9 (3.2)245.7 288.2 
Subtotal74.4 76.3 (2.5)296.8 291.4 1.9 622.7 659.0 
Supplemental and Voluntary67.5 55.4 21.8 265.1 291.4 (9.0)376.9 451.1 
Total Sales$141.9 $131.7 7.7 $561.9 $582.8 (3.6)$999.6 $1,110.1 


5


Unum Group Sales Data for Unum International Segment

Three Months EndedNine Months EndedYear Ended
(in millions of dollars)9/30/20219/30/2020% Change9/30/20219/30/2020% Change12/31/202012/31/2019
Sales by Product
Unum UK
Group Long-term Disability$10.1 $8.1 24.7 %$33.4 $29.7 12.5 %$37.7 $43.2 
Group Life6.8 4.3 58.1 22.9 16.1 42.2 20.6 24.3 
Supplemental3.7 1.5 146.7 13.6 16.5 (17.6)18.9 19.5 
Unum Poland3.5 3.8 (7.9)10.5 9.4 11.7 13.3 13.0 
Total Sales$24.1 $17.7 36.2 $80.4 $71.7 12.1 $90.5 $100.0 
Sales by Market Sector
Unum UK
Group Long-term Disability and Group Life
Core Market (< 500 employees)$9.3 $7.6 22.4 %$30.5 $26.9 13.4 %$36.2 $38.2 
Large Case Market7.6 4.8 58.3 25.8 18.9 36.5 22.1 29.3 
Subtotal16.9 12.4 36.3 56.3 45.8 22.9 58.3 67.5 
Supplemental3.7 1.5 146.7 13.6 16.5 (17.6)18.9 19.5 
Unum Poland3.5 3.8 (7.9)10.5 9.4 11.7 13.3 13.0 
Total Sales$24.1 $17.7 36.2 $80.4 $71.7 12.1 $90.5 $100.0 
(in millions of pounds)
Unum UK Sales by Product
Group Long-term Disability£7.4 £6.2 19.4 %£24.1 £23.4 3.0 %£29.5 £33.7 
Group Life4.9 3.3 48.5 16.5 12.7 29.9 16.1 19.0 
Supplemental2.7 1.2 125.0 9.9 13.0 (23.8)14.9 15.1 
Total Sales£15.0 £10.7 40.2 £50.5 £49.1 2.9 £60.5 £67.8 
Unum UK Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)£6.7 £5.8 15.5 %£22.0 £21.1 4.3 %£28.3 £29.9 
Large Case Market5.6 3.7 51.4 18.6 15.0 24.0 17.3 22.8 
Subtotal12.3 9.5 29.5 40.6 36.1 12.5 45.6 52.7 
Supplemental2.7 1.2 125.0 9.9 13.0 (23.8)14.9 15.1 
Total Sales£15.0 £10.7 40.2 £50.5 £49.1 2.9 £60.5 £67.8 


5. 1


Unum Group Sales Data for Colonial Life Segment

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/2020% Change9/30/20219/30/2020% Change12/31/202012/31/2019
Sales by Product
Accident, Sickness, and Disability$69.8 $55.3 26.2 %$196.4 $165.2 18.9 %$261.5 $354.4 
Life26.4 19.5 35.4 73.2 56.3 30.0 88.8 122.7 
Cancer and Critical Illness16.1 12.5 28.8 44.0 37.4 17.6 62.8 88.9 
Total Sales$112.3 $87.3 28.6 $313.6 $258.9 21.1 $413.1 $566.0 
Sales by Market Sector
Commercial
Core Market (< 1,000 employees)$72.3 $57.3 26.2 %$207.2 $170.8 21.3 %$266.2 $345.7 
Large Case Market14.3 8.7 64.4 43.4 30.6 41.8 57.4 81.4 
Subtotal86.6 66.0 31.2 250.6 201.4 24.4 323.6 427.1 
Public Sector25.7 21.3 20.7 63.0 57.5 9.6 89.5 138.9 
Total Sales$112.3 $87.3 28.6 $313.6 $258.9 21.1 $413.1 $566.0 



5. 2


Unum Group Consolidated Balance Sheets
September 30December 31
20212020
Assets
Investments
Fixed Maturity Securities$43,628.3 $44,137.3 
Mortgage Loans2,499.4 2,432.1 
Policy Loans3,691.4 3,683.9 
Other Long-term Investments1,124.5 960.2 
Short-term Investments1,472.7 1,470.0 
Total Investments52,416.3 52,683.5 
Other Assets
Cash and Bank Deposits121.7 197.0 
Accounts and Premiums Receivable1,545.9 1,519.3 
Reinsurance Recoverable11,105.8 10,666.0 
Accrued Investment Income598.2 611.4 
Deferred Acquisition Costs2,231.5 2,272.6 
Goodwill352.1 353.0 
Property and Equipment462.5 498.0 
Income Tax Receivable— 72.7 
Other Assets1,763.9 1,752.3 
Total Assets$70,597.9 $70,625.8 

6


Unum Group Consolidated Balance Sheets - Continued
September 30December 31
20212020
Liabilities and Stockholders' Equity
Liabilities
Policy and Contract Benefits$1,920.4 $1,855.4 
Reserves for Future Policy and Contract Benefits48,475.7 49,653.0 
Unearned Premiums414.3 349.3 
Other Policyholders’ Funds1,763.1 1,663.9 
Income Tax Payable40.7 — 
Deferred Income Tax424.8 416.1 
Long-term Debt3,441.4 3,345.7 
Other Liabilities 2,999.3 2,471.4 
Total Liabilities59,479.7 59,754.8 
Stockholders’ Equity
Common Stock30.7 30.7 
Additional Paid-in Capital2,398.5 2,376.2 
Accumulated Other Comprehensive Income113.9 374.2 
Retained Earnings11,754.8 11,269.6 
Treasury Stock(3,179.7)(3,179.7)
Total Stockholders’ Equity11,118.2 10,871.0 
Total Liabilities and Stockholders’ Equity$70,597.9 $70,625.8 

6. 1


Unum Group Deferred Acquisition Costs by Segment

Unum USUnum InternationalColonial LifeConsolidated
Balance at December 31, 2019$1,223.0 $26.4 $1,074.6 $2,324.0 
Capitalization291.5 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 
Balance at December 31, 20201,168.7 32.0 1,071.9 2,272.6 
Capitalization193.4 9.6 185.9 388.9 
Amortization(243.7)(6.1)(191.0)(440.8)
Adjustment Related to Unrealized Investment Gains and Losses3.1 — 9.0 12.1 
Foreign Currency— (1.3)— (1.3)
Balance at September 30, 2021$1,121.5 $34.2 $1,075.8 $2,231.5 

6. 2


Unum Group Balance Sheets by Segment - September 30, 2021

Unum US
Group DisabilityGroup Life and Accidental Death & DismembermentSupplemental and VoluntaryTotal Unum USUnum InternationalColonial LifeClosed BlockCorporateConsolidated
Assets
Investments$8,375.8 $2,587.2 $5,411.6 $16,374.6 $3,768.7 $3,587.9 $25,831.8 $2,853.3 $52,416.3 
Deferred Acquisition Costs94.1 75.0 952.4 1,121.5 34.2 1,075.8 — — 2,231.5 
Goodwill8.9 — 271.1 280.0 44.4 27.7 — — 352.1 
All Other424.4 356.9 341.4 1,122.7 355.4 226.7 12,395.3 1,497.9 15,598.0 
Total Assets$8,903.2 $3,019.1 $6,976.5 $18,898.8 $4,202.7 $4,918.1 $38,227.1 $4,351.2 $70,597.9 
Liabilities
Reserves and Policyholder Benefits$7,009.7 $2,002.8 $4,319.8 $13,332.3 $3,151.1 $2,966.3 $33,123.8 $— $52,573.5 
Debt— — — — — — — 3,441.4 3,441.4 
All Other175.0 99.3 346.4 620.7 246.6 189.6 761.0 1,646.9 3,464.8 
Total Liabilities7,184.7 2,102.1 4,666.2 13,953.0 3,397.7 3,155.9 33,884.8 5,088.3 59,479.7 
Allocated Stockholders' Equity
Other Allocated Stockholders' Equity1,676.5 874.8 2,083.9 4,635.2 778.4 1,574.1 4,148.7 (923.7)10,212.7 
Net Unrealized Gain on Securities and Net Gain on Hedges42.0 42.2 226.4 310.6 26.6 188.1 193.6 186.6 905.5 
Total Allocated Stockholders' Equity1,718.5 917.0 2,310.3 4,945.8 805.0 1,762.2 4,342.3 (737.1)11,118.2 
Total Liabilities and Allocated Stockholders' Equity$8,903.2 $3,019.1 $6,976.5 $18,898.8 $4,202.7 $4,918.1 $38,227.1 $4,351.2 $70,597.9 

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



6. 3


Unum Group Balance Sheets by Segment - December 31, 2020

Unum US
Group DisabilityGroup Life and Accidental Death & DismembermentSupplemental and VoluntaryTotal Unum USUnum InternationalColonial LifeClosed BlockCorporateConsolidated
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 Costs95.3 76.4 997.0 1,168.7 32.0 1,071.9 — — 2,272.6 
Goodwill8.9 — 271.1 280.0 45.3 27.7 — — 353.0 
All Other486.0 408.5 475.2 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 Other106.1 62.2 366.2 534.5 128.2 135.6 290.8 1,798.4 2,887.5 
Total Liabilities7,548.3 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' Equity1,404.7 903.8 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 Hedges25.7 66.4 273.6 365.7 109.6 214.2 224.1 251.9 1,165.5 
Total Allocated Stockholders' Equity1,430.4 970.2 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 

6. 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 EndedNine Months Ended
9/30/20219/30/2020% Change9/30/20219/30/2020% Change
Premium Income
Unum US$1,500.8 $1,483.4 1.2 %$4,548.7 $4,533.8 0.3 %
Unum International181.6 165.4 9.8 539.5 487.1 10.8 
Colonial Life420.8 419.9 0.2 1,266.9 1,293.2 (2.0)
Closed Block250.5 249.4 0.4 751.3 744.1 1.0 
2,353.7 2,318.1 1.5 7,106.4 7,058.2 0.7 
Net Investment Income
Unum US176.2 190.7 (7.6)539.5 547.2 (1.4)
Unum International33.1 26.3 25.9 94.8 79.1 19.8 
Colonial Life51.8 43.7 18.5 131.1 118.2 10.9 
Closed Block284.6 351.2 (19.0)876.5 1,013.6 (13.5)
Corporate4.5 1.3 N.M.20.5 9.1 125.3 
550.2 613.2 (10.3)1,662.4 1,767.2 (5.9)
Other Income
Unum US43.5 42.0 3.6 125.2 117.5 6.6 
Unum International0.4 0.2 100.0 0.6 0.4 50.0 
Colonial Life0.3 0.3 — 0.8 0.9 (11.1)
Closed Block19.3 17.8 8.4 49.8 49.7 0.2 
Corporate2.4 0.3 N.M.4.1 0.5 N.M.
65.9 60.6 8.7 180.5 169.0 6.8 
Total Adjusted Operating Revenue
Unum US1,720.5 1,716.1 0.3 5,213.4 5,198.5 0.3 
Unum International215.1 191.9 12.1 634.9 566.6 12.1 
Colonial Life472.9 463.9 1.9 1,398.8 1,412.3 (1.0)
Closed Block554.4 618.4 (10.3)1,677.6 1,807.4 (7.2)
Corporate6.9 1.6 N.M.24.6 9.6 156.3 
$2,969.8 $2,991.9 (0.7)$8,949.3 $8,994.4 (0.5)

7


Unum Group Financial Results by Segment - Continued

Three Months EndedNine Months Ended
9/30/20219/30/2020% Change9/30/20219/30/2020% Change
Benefits and Expenses
Unum US$1,417.0 $1,527.9 (7.3)%$4,614.9 $4,516.6 2.2 %
Unum International187.7 170.5 10.1 556.3 510.7 8.9 
Colonial Life392.8 371.7 5.7 1,149.6 1,148.1 0.1 
Closed Block497.9 547.6 (9.1)1,591.9 1,670.2 (4.7)
Corporate64.4 79.0 (18.5)250.7 203.7 23.1 
2,559.8 2,696.7 (5.1)8,163.4 8,049.3 1.4 
Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss)
Unum US303.5 188.2 61.3 598.5 681.9 (12.2)
Unum International27.4 21.4 28.0 78.6 55.9 40.6 
Colonial Life80.1 92.2 (13.1)249.2 264.2 (5.7)
Closed Block56.5 70.8 (20.2)85.7 137.2 (37.5)
Corporate(57.5)(77.4)25.7 (226.1)(194.1)(16.5)
410.0 295.2 38.9 785.9 945.1 (16.8)
Income Tax81.3 67.9 19.7 188.8 203.6 (7.3)
Income Before Net Realized Investment Gain (Loss)328.7 227.3 44.6 597.1 741.5 (19.5)
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $—; $0.6; $18.0; $(21.9))
(0.1)3.8 (102.6)67.4 (83.9)(180.3)
Net Income$328.6 $231.1 42.2 $664.5 $657.6 1.0 

7. 1


Unum Group Quarterly Historical Financial Results by Segment

9/30/216/30/213/31/2112/31/209/30/206/30/203/31/2012/31/199/30/19
Premium Income
Unum US$1,500.8 $1,522.1 $1,525.8 $1,485.1 $1,483.4 $1,522.7 $1,527.7 $1,508.3 $1,501.9 
Unum International181.6 183.5 174.4 165.7 165.4 157.1 164.6 165.6 152.3 
Colonial Life420.8 419.7 426.4 418.8 419.9 438.6 434.7 424.9 419.9 
Closed Block250.5 249.1 251.7 250.3 249.4 250.3 244.4 253.8 257.1 
2,353.7 2,374.4 2,378.3 2,319.9 2,318.1 2,368.7 2,371.4 2,352.6 2,331.2 
Net Investment Income
Unum US176.2 183.6 179.7 173.1 190.7 176.9 179.6 189.0 184.2 
Unum International33.1 35.7 26.0 25.5 26.3 26.3 26.5 28.6 24.3 
Colonial Life51.8 41.6 37.7 37.5 43.7 36.8 37.7 37.0 36.9 
Closed Block284.6 294.7 297.2 356.7 351.2 326.3 336.1 356.6 347.3 
Corporate4.5 7.9 8.1 0.7 1.3 2.7 5.1 5.1 6.7 
550.2 563.5 548.7 593.5 613.2 569.0 585.0 616.3 599.4 
Other Income
Unum US43.5 41.3 40.4 37.4 42.0 35.3 40.2 36.7 34.8 
Unum International0.4 0.1 0.1 0.1 0.2 0.2 — 0.3 — 
Colonial Life0.3 0.3 0.2 0.2 0.3 0.3 0.3 1.2 0.9 
Closed Block19.3 12.1 18.4 16.9 17.8 13.7 18.2 17.8 18.9 
Corporate2.4 0.4 1.3 0.6 0.3 0.2 — 0.5 1.0 
65.9 54.2 60.4 55.2 60.6 49.7 58.7 56.5 55.6 
Total Adjusted Operating Revenue
Unum US1,720.5 1,747.0 1,745.9 1,695.6 1,716.1 1,734.9 1,747.5 1,734.0 1,720.9 
Unum International215.1 219.3 200.5 191.3 191.9 183.6 191.1 194.5 176.6 
Colonial Life472.9 461.6 464.3 456.5 463.9 475.7 472.7 463.1 457.7 
Closed Block554.4 555.9 567.3 623.9 618.4 590.3 598.7 628.2 623.3 
Corporate6.9 8.3 9.4 1.3 1.6 2.9 5.1 5.6 7.7 
$2,969.8 $2,992.1 $2,987.4 $2,968.6 $2,991.9 $2,987.4 $3,015.1 $3,025.4 $2,986.2 


8


Unum Group Quarterly Historical Financial Results by Segment - Continued

9/30/216/30/213/31/2112/31/209/30/206/30/203/31/2012/31/199/30/19
Benefits and Expenses
Unum US$1,417.0 $1,567.7 $1,630.2 $1,552.1 $1,527.9 $1,503.0 $1,485.7 $1,470.9 $1,459.5 
Unum International187.7 194.5 174.1 170.6 170.5 168.5 171.7 170.6 152.4 
Colonial Life392.8 365.8 391.0 385.3 371.7 384.8 391.6 375.4 370.5 
Closed Block497.9 464.4 629.6 1,996.8 547.6 553.6 569.0 582.1 596.4 
Corporate64.4 138.0 48.3 44.0 79.0 73.7 51.0 58.2 81.8 
2,559.8 2,730.4 2,873.2 4,148.8 2,696.7 2,683.6 2,669.0 2,657.2 2,660.6 
Income (Loss) Before Income Tax Expense (Benefit) and Net Realized Investment Gain (Loss)
Unum US303.5 179.3 115.7 143.5 188.2 231.9 261.8 263.1 261.4 
Unum International27.4 24.8 26.4 20.7 21.4 15.1 19.4 23.9 24.2 
Colonial Life80.1 95.8 73.3 71.2 92.2 90.9 81.1 87.7 87.2 
Closed Block56.5 91.5 (62.3)(1,372.9)70.8 36.7 29.7 46.1 26.9 
Corporate(57.5)(129.7)(38.9)(42.7)(77.4)(70.8)(45.9)(52.6)(74.1)
410.0 261.7 114.2 (1,180.2)295.2 303.8 346.1 368.2 325.6 
Income Tax Expense (Benefit)81.3 79.4 28.1 (285.2)67.9 63.7 72.0 79.2 62.8 
Income (Loss) Before Net Realized Gain (Loss)328.7 182.3 86.1 (895.0)227.3 240.1 274.1 289.0 262.8 
Net Realized Investment Gain (Loss)(0.1)0.9 84.6 1,304.9 4.4 33.8 (144.0)9.2 (26.2)
Tax Expense (Benefit) on Net Realized Investment Gain (Loss)— 0.3 17.7 274.5 0.6 8.4 (30.9)2.0 (5.4)
Net Income$328.6 $182.9 $153.0 $135.4 $231.1 $265.5 $161.0 $296.2 $242.0 
Net Income Per Common Share - Assuming Dilution$1.60 $0.89 $0.75 $0.66 $1.13 $1.30 $0.79 $1.44 $1.16 

8. 1


Unum Group Financial Results for Unum US Segment

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income$1,500.8 $1,483.4 $4,548.7 $4,533.8 $6,018.9 $6,016.6 
Net Investment Income176.2 190.7 539.5 547.2 720.3 739.4 
Other Income43.5 42.0 125.2 117.5 154.9 142.8 
Total1,720.5 1,716.1 5,213.4 5,198.5 6,894.1 6,898.8 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits950.2 1,052.2 3,175.6 3,073.6 4,138.7 4,022.1 
Commissions143.5 146.3 439.0 455.0 594.9 628.5 
Deferral of Acquisition Costs(61.1)(68.2)(193.4)(223.3)(291.5)(334.5)
Amortization of Deferred Acquisition Costs71.1 82.1 243.7 261.8 341.0 344.0 
Other Expenses313.3 315.5 950.0 949.5 1,285.6 1,207.6 
Total1,417.0 1,527.9 4,614.9 4,516.6 6,068.7 5,867.7 
Income Before Income Tax and Net Realized Investment Gain (Loss)303.5 188.2 598.5 681.9 825.4 1,031.1 
Reserve Assumption Update(215.0)— (215.0)— — — 
Adjusted Operating Income $88.5 $188.2 $383.5 $681.9 $825.4 $1,031.1 
Operating Ratios (% of Premium Income):
Benefit Ratio1
77.6 %70.9 %74.5 %67.8 %68.8 %66.9 %
Other Expense Ratio20.9 %21.3 %20.9 %20.9 %21.4 %20.1 %
Adjusted Operating Income Ratio5.9 %12.7 %8.4 %15.0 %13.7 %17.1 %
1Excludes the $215.0 million reserve decrease during the third quarter and first nine months of 2021 related to the assumption update that occurred during the third quarter of 2021.
9


Unum Group Financial Results for Unum US Group Disability

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income
Group Long-term Disability$451.4 $450.5 $1,367.7 $1,374.5 $1,828.5 $1,823.1 
Group Short-term Disability212.4 196.2 641.2 603.0 799.2 768.8 
Total Premium Income663.8 646.7 2,008.9 1,977.5 2,627.7 2,591.9 
Net Investment Income93.3 105.4 284.7 295.3 388.8 401.5 
Other Income42.1 39.2 121.4 111.4 147.6 133.8 
Total799.2 791.3 2,415.0 2,384.2 3,164.1 3,127.2 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits308.6 479.3 1,314.3 1,450.8 1,921.9 1,927.9 
Commissions49.1 47.6 151.2 145.6 191.8 193.8 
Deferral of Acquisition Costs(12.3)(11.6)(37.4)(36.1)(49.3)(49.5)
Amortization of Deferred Acquisition Costs12.9 13.2 38.6 39.7 53.1 50.7 
Other Expenses186.4 189.8 569.8 558.9 756.6 672.1 
Total544.7 718.3 2,036.5 2,158.9 2,874.1 2,795.0 
Income Before Income Tax and Net Realized Investment Gain (Loss)254.5 73.0 378.5 225.3 290.0 332.2 
Reserve Assumption Update(215.0)— (215.0)— — — 
Adjusted Operating Income$39.5 $73.0 $163.5 $225.3 $290.0 $332.2 
Operating Ratios (% of Premium Income):
Benefit Ratio1
78.9 %74.1 %76.1 %73.4 %73.1 %74.4 %
Other Expense Ratio28.1 %29.3 %28.4 %28.3 %28.8 %25.9 %
Adjusted Operating Income Ratio6.0 %11.3 %8.1 %11.4 %11.0 %12.8 %
Persistency:
Group Long-term Disability89.8 %90.3 %90.8 %90.7 %
Group Short-term Disability87.1 %87.5 %88.7 %89.8 %
1Excludes the $215.0 million reserve decrease during the third quarter and first nine months of 2021 related to the assumption update that occurred during the third quarter of 2021.
9. 1


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

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income
Group Life$404.2 $406.3 $1,228.8 $1,235.4 $1,640.5 $1,662.0 
Accidental Death & Dismemberment39.6 39.7 123.0 123.1 163.9 165.7 
Total Premium Income443.8 446.0 1,351.8 1,358.5 1,804.4 1,827.7 
Net Investment Income24.3 25.2 76.1 74.2 97.2 107.4 
Other Income0.5 1.0 1.3 2.0 2.4 2.7 
Total468.6 472.2 1,429.2 1,434.7 1,904.0 1,937.8 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits446.6 372.2 1,281.2 1,067.5 1,470.4 1,314.1 
Commissions36.4 35.0 109.1 108.3 143.2 147.7 
Deferral of Acquisition Costs(8.9)(8.4)(27.3)(26.3)(36.0)(37.8)
Amortization of Deferred Acquisition Costs9.5 9.6 28.7 29.3 39.3 38.1 
Other Expenses52.1 49.9 157.7 152.2 205.3 209.0 
Total535.7 458.3 1,549.4 1,331.0 1,822.2 1,671.1 
Adjusted Operating Income (Loss)$(67.1)$13.9 $(120.2)$103.7 $81.8 $266.7 
Operating Ratios (% of Premium Income):
Benefit Ratio100.6 %83.5 %94.8 %78.6 %81.5 %71.9 %
Other Expense Ratio11.7 %11.2 %11.7 %11.2 %11.4 %11.4 %
Adjusted Operating Income Ratio(15.1)%3.1 %(8.9)%7.6 %4.5 %14.6 %
Persistency:
Group Life89.9 %88.6 %88.8 %90.6 %
Accidental Death & Dismemberment89.3 %87.8 %88.2 %89.9 %

9. 2


Unum Group Financial Results for Unum US Supplemental and Voluntary

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income
Individual Disability$115.7 $117.7 $345.0 $340.3 $456.0 $440.7 
Voluntary Benefits209.6 212.2 640.4 666.6 875.2 910.2 
Dental and Vision67.9 60.8 202.6 190.9 255.6 246.1 
Total Premium Income393.2 390.7 1,188.0 1,197.8 1,586.8 1,597.0 
Net Investment Income58.6 60.1 178.7 177.7 234.3 230.5 
Other Income0.9 1.8 2.5 4.1 4.9 6.3 
Total452.7 452.6 1,369.2 1,379.6 1,826.0 1,833.8 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits195.0 200.7 580.1 555.3 746.4 780.1 
Commissions58.0 63.7 178.7 201.1 259.9 287.0 
Deferral of Acquisition Costs(39.9)(48.2)(128.7)(160.9)(206.2)(247.2)
Amortization of Deferred Acquisition Costs48.7 59.3 176.4 192.8 248.6 255.2 
Other Expenses74.8 75.8 222.5 238.4 323.7 326.5 
Total336.6 351.3 1,029.0 1,026.7 1,372.4 1,401.6 
Adjusted Operating Income $116.1 $101.3 $340.2 $352.9 $453.6 $432.2 
Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability40.1 %48.6 %43.6 %51.1 %48.8 %50.9 %
Voluntary Benefits46.6 %45.6 %43.3 %40.3 %42.2 %41.8 %
Dental and Vision75.0 %76.8 %75.1 %59.0 %60.6 %71.1 %
Other Expense Ratio19.0 %19.4 %18.7 %19.9 %20.4 %20.4 %
Adjusted Operating Income Ratio29.5 %25.9 %28.6 %29.5 %28.6 %27.1 %
Persistency:
Individual Disability88.4 %89.8 %89.5 %89.8 %
Voluntary Benefits75.4 %72.7 %72.7 %73.2 %
Dental and Vision86.3 %82.4 %85.0 %82.6 %

9. 3


Unum Group Financial Results for Unum International Segment

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income
Unum UK
Group Long-term Disability$101.6 $92.2 $303.8 $272.0 $364.9 $353.4 
Group Life29.1 27.3 84.4 83.3 108.5 115.7 
Supplemental28.3 25.4 84.2 73.9 99.8 89.5 
Unum Poland22.6 20.5 67.1 57.9 79.6 71.9 
Total Premium Income181.6 165.4 539.5 487.1 652.8 630.5 
Net Investment Income33.1 26.3 94.8 79.1 104.6 122.5 
Other Income0.4 0.2 0.6 0.4 0.5 0.6 
Total215.1 191.9 634.9 566.6 757.9 753.6 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits139.6 124.5 416.6 377.9 500.9 469.8 
Commissions13.9 12.4 40.7 36.8 49.7 48.7 
Deferral of Acquisition Costs (3.3)(2.8)(9.6)(8.9)(12.1)(12.8)
Amortization of Deferred Acquisition Costs2.0 1.8 6.1 5.3 7.4 7.1 
Other Expenses35.5 34.6 102.5 99.6 135.4 132.9 
Total187.7 170.5 556.3 510.7 681.3 645.7 
Adjusted Operating Income$27.4 $21.4 $78.6 $55.9 $76.6 $107.9 



10


Unum Group Financial Results for Unum UK


Three Months EndedNine Months EndedYear Ended
(in millions of pounds, except exchange rate)9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income
Group Long-term Disability£73.7 £71.3 £219.3 £213.9 £284.2 £276.8 
Group Life21.1 21.1 60.9 65.5 84.6 90.7 
Supplemental20.6 19.7 60.8 58.2 77.7 70.0 
Total Premium Income115.4 112.1 341.0 337.6 446.5 437.5 
Net Investment Income22.5 18.9 64.2 58.1 76.0 90.5 
Other Income0.2 0.1 0.2 0.1 0.1 0.2 
Total138.1 131.1 405.4 395.8 522.6 528.2 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits91.4 86.4 269.6 270.2 352.5 335.5 
Commissions7.5 6.9 21.6 21.1 28.1 28.6 
Deferral of Acquisition Costs(1.2)(0.9)(3.2)(3.2)(4.2)(5.4)
Amortization of Deferred Acquisition Costs1.2 1.3 3.8 3.9 5.3 5.4 
Other Expenses20.8 22.2 59.8 64.8 86.5 83.7 
Total119.7 115.9 351.6 356.8 468.2 447.8 
Adjusted Operating Income£18.4 £15.2 £53.8 £39.0 £54.4 £80.4 
Weighted Average Pound/Dollar Exchange Rate1.380 1.289 1.385 1.274 1.287 1.279 
Operating Ratios (% of Premium Income):
Benefit Ratio79.2 %77.1 %79.1 %80.0 %78.9 %76.7 %
Other Expense Ratio18.0 %19.8 %17.5 %19.2 %19.4 %19.1 %
Adjusted Operating Income Ratio15.9 %13.6 %15.8 %11.6 %12.2 %18.4 %
Persistency:
Group Long-term Disability88.9 %87.2 %88.2 %89.9 %
Group Life86.0 %81.0 %81.8 %89.0 %
Supplemental89.9 %90.3 %90.7 %89.9 %

10. 1


Unum Group Financial Results for Colonial Life Segment

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income
Accident, Sickness, and Disability$238.0 $238.9 $715.1 $738.4 $975.1 $973.4 
Life94.6 91.9 287.3 282.5 376.4 351.6 
Cancer and Critical Illness88.2 89.1 264.5 272.3 360.5 360.0 
Total Premium Income420.8 419.9 1,266.9 1,293.2 1,712.0 1,685.0 
Net Investment Income51.8 43.7 131.1 118.2 155.7 148.0 
Other Income0.3 0.3 0.8 0.9 1.1 3.4 
Total472.9 463.9 1,398.8 1,412.3 1,868.8 1,836.4 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits235.2 219.0 688.2 669.4 906.5 865.0 
Commissions80.5 79.9 236.9 260.0 334.3 364.5 
Deferral of Acquisition Costs(64.2)(63.9)(185.9)(214.6)(272.6)(311.3)
Amortization of Deferred Acquisition Costs65.3 65.8 191.0 199.5 257.7 258.8 
Other Expenses76.0 70.9 219.4 233.8 307.5 314.9 
Total392.8 371.7 1,149.6 1,148.1 1,533.4 1,491.9 
Adjusted Operating Income$80.1 $92.2 $249.2 $264.2 $335.4 $344.5 
Operating Ratios (% of Premium Income):
Benefit Ratio55.9 %52.2 %54.3 %51.8 %52.9 %51.3 %
Other Expense Ratio18.1 %16.9 %17.3 %18.0 %18.0 %18.7 %
Adjusted Operating Income Ratio19.0 %22.0 %19.7 %20.4 %19.6 %20.4 %
Persistency:
Accident, Sickness, and Disability75.6 %74.2 %74.3 %73.2 %
Life84.9 %83.4 %83.7 %83.4 %
Cancer and Critical Illness82.1 %81.4 %81.8 %80.6 %

11


Unum Group Financial Results for Closed Block Segment

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Premium Income
Long-term Care $176.1 $167.7 $528.4 $498.2 $666.9 $651.6 
Individual Disability72.3 80.0 216.8 240.1 319.6 374.3 
All Other2.1 1.7 6.1 5.8 7.9 7.6 
Total Premium Income250.5 249.4 751.3 744.1 994.4 1,033.5 
Net Investment Income284.6 351.2 876.5 1,013.6 1,370.3 1,404.9 
Other Income19.3 17.8 49.8 49.7 66.6 71.3 
Total554.4 618.4 1,677.6 1,807.4 2,431.3 2,509.7 
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits428.9 492.9 1,378.8 1,505.3 3,426.8 2,139.3 
Commissions20.4 19.7 61.3 58.7 78.4 81.0 
Interest and Debt Expense— 0.4 — 1.9 3.1 5.3 
Other Expenses48.6 34.6 151.8 104.3 158.7 146.4 
Total497.9 547.6 1,591.9 1,670.2 3,667.0 2,372.0 
Income (Loss) Before Income Tax and Net Realized Investment Gain (Loss)56.5 70.8 85.7 137.2 (1,235.7)137.7 
Long-term Care Reserve Increase2.1 — 2.1 — 151.5 — 
Individual Disability Reserve Increase6.4 — 6.4 — 17.5 — 
Group Pension Reserve Increase25.1 — 25.1 — — — 
Impacts from Closed Block Individual Disability Reinsurance Transaction— — 139.3 — 1,305.5 — 
Amortization of the Cost of Reinsurance19.7 — 59.4 — 2.6 — 
Adjusted Operating Income$109.8 $70.8 $318.0 $137.2 $241.4 $137.7 
Interest Adjusted Loss Ratios:
Long-term Care1
74.8 %67.4 %75.7 %71.8 %91.9 %88.1 %
Individual Disability2
58.2 %86.6 %65.6 %87.0 %85.1 %78.8 %
Operating Ratios (% of Premium Income):
Other Expense Ratio19.4 %13.9 %20.2 %14.0 %16.0 %14.2 %
Other Expense Ratio Excluding Impacts from Reinsurance Transaction3
11.5 %11.5 %13.6 %
Income (Loss) Ratio22.6 % 11.4 % (124.3)% 
Adjusted Operating Income Ratio43.8 %28.4 %42.3 %18.4 %24.3 %13.3 %
Persistency:
Long-term Care95.5 %95.0 %94.8 %95.7 %
Individual Disability86.5 %88.5 %88.0 %88.1 %
1Excludes $2.1 million during the third quarter and first nine months of 2021 related to the reserve assumption update that occurred during the third quarter of 2021 and excludes $151.5 million during the twelve months ended December 31, 2020 related to the reserve assumption update that occurred during the fourth quarter of 2020. The interest-adjusted loss ratio for the rolling twelve months ended September 30, 2021 and September 30, 2020 was 71.8 percent and 75.6 percent, respectively.
12


2Excludes the $133.1 million reserve recognition from the first nine months of 2021 related to the second phase of the reinsurance transaction that occurred during the first quarter of 2021. Also excluded from the third quarter and first nine months of 2021 is $6.4 million related to reserve assumption updates that occurred during the third quarter of 2021.
3Excludes $19.7 million and $59.4 million of amortization of the cost of reinsurance during the third quarter and first nine months of 2021, respectively. Also excluded from the first nine months of 2021 is $6.2 million of transaction costs related to the reinsurance transaction that occurred during the first quarter of 2021.
12.1


Unum Group Financial Results for Corporate Segment

Three Months EndedNine Months EndedYear Ended
9/30/20219/30/20209/30/20219/30/202012/31/202012/31/2019
Adjusted Operating Revenue
Net Investment Income$4.5 $1.3 $20.5 $9.1 $9.8 $20.5 
Other Income2.4 0.3 4.1 0.5 1.1 3.1 
Total6.9 1.6 24.6 9.6 10.9 23.6 
Interest, Debt, and Other Expenses64.4 79.0 250.7 203.7 247.7 239.5 
Loss Before Income Tax and Net Realized Investment Gain (Loss)(57.5)(77.4)(226.1)(194.1)(236.8)(215.9)
Impairment Loss on Internal-Use Software12.1 — 12.1 — — — 
Costs Related to Organizational Design Update— 23.3 — 23.3 23.3 — 
Impairment Loss on ROU Asset— — 13.9 12.7 12.7 — 
Cost Related to Early Retirement of Debt— — 67.3 — — 27.3 
Adjusted Operating Loss$(45.4)$(54.1)$(132.8)$(158.1)$(200.8)$(188.6)



13


Unum Group Reserves

September 30, 2021
GrossTotal Reinsurance Ceded
Policy ReservesClaim ReservesTotal Net
%IncurredIBNR%Total
Group Disability$— — %$5,358.9 $759.3 25.7 %$6,118.2 $53.9 $6,064.3 
Group Life and Accidental Death & Dismemberment57.5 0.3 730.0 277.8 4.2 1,065.3 6.1 1,059.2 
Individual Disability461.4 2.1 1,416.8 147.8 6.6 2,026.0 206.9 1,819.1 
Voluntary Benefits1,739.1 8.1 49.8 55.7 0.4 1,844.6 24.0 1,820.6 
Dental and Vision— — 0.2 14.1 0.1 14.3 0.1 14.2 
Unum US Segment2,258.0 10.5 7,555.7 1,254.7 37.0 11,068.4 291.0 10,777.4 
Unum International Segment209.6 1.0 2,085.5 154.6 9.4 2,449.7 97.2 2,352.5 
Colonial Life Segment2,439.0 11.4 330.0 118.8 1.9 2,887.8 3.8 2,884.0 
Individual Disability158.9 0.7 9,342.8 129.4 39.9 9,631.1 8,302.4 1,328.7 
Long-term Care10,726.0 49.9 2,276.6 260.7 10.7 13,263.3 7.1 13,256.2 
Other5,691.2 26.5 153.2 107.5 1.1 5,951.9 4,973.1 978.8 
Closed Block Segment16,576.1 77.1 11,772.6 497.6 51.7 28,846.3 13,282.6 15,563.7 
Subtotal$21,482.7 100.0 %$21,743.8 $2,025.7 100.0 %45,252.2 13,674.6 31,577.6 
Adjustment Related to Unrealized Investment Gains and Losses5,143.9 138.2 5,005.7 
Consolidated$50,396.1 $13,812.8 $36,583.3 

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, 2020 was driven by the second phase of the reinsurance transaction that closed on March 31, 2021 whereby we ceded $990.0 million of disabled life reserves that were on claim status as of January 1, 2021.

14


Unum Group Reserves

December 31, 2020
GrossTotal Reinsurance Ceded
Policy ReservesClaim ReservesTotal Net
%IncurredIBNR%Total
Group Disability$— — %$5,663.4 $720.4 26.5 %$6,383.8 $58.3 $6,325.5 
Group Life and Accidental Death & Dismemberment58.8 0.3 715.4 261.3 4.0 1,035.5 3.0 1,032.5 
Individual Disability475.9 2.2 1,417.4 146.0 6.5 2,039.3 216.3 1,823.0 
Voluntary Benefits1,731.3 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 Segment2,266.0 10.7 7,842.7 1,194.3 37.4 11,303.0 303.0 11,000.0 
Unum International Segment208.4 1.0 2,077.0 138.6 9.2 2,424.0 89.9 2,334.1 
Colonial Life Segment2,354.8 11.2 329.0 117.4 1.8 2,801.2 4.5 2,796.7 
Individual Disability196.3 0.9 9,641.9 144.2 40.5 9,982.4 7,810.1 2,172.3 
Long-term Care10,402.1 49.3 2,147.4 268.5 10.0 12,818.0 44.4 12,773.6 
Other5,675.0 26.9 166.1 113.1 1.1 5,954.2 4,966.3 987.9 
Closed Block Segment16,273.4 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 Losses6,225.6 200.2 6,025.4 
Consolidated$51,508.4 $13,418.4 $38,090.0 


14. 1


Unum Group Investments

9/30/20219/30/202112/31/2020
Fixed Maturity Securities (Fair Value)Selected Statistics
Public$26,987.4 61.9 %Earned Book Yield4.86 %4.75 %
Mortgage-Backed/Asset-Backed Securities689.6 1.6 Average Duration (in years)8.388.31
Private Placements6,529.6 14.9 
High Yield3,092.2 7.1 
Government Securities1,738.0 4.0 
Municipal Securities4,587.4 10.5 
Redeemable Preferred Stocks4.1 — 
Total$43,628.3 100.0 %
Amortized CostFair Value
Quality Ratings of Fixed Maturity SecuritiesSchedule BA and Non-Current
Aaa4.8 %4.7 %Total Non-Current Investments$19.8 $20.8 
Aa11.2 11.4 Total Schedule BA Assets$917.3 $776.8 
A26.5 27.2 
Baa50.0 49.6 
Below Baa7.5 7.1 
Total100.0 %100.0 %


15


Unum Group Investments at September 30, 2021
Fixed Maturity Securities - By Industry Classification - Unrealized Gain (Loss)
ClassificationFair ValueNet Unrealized GainFair Value of Fixed Maturity Securities with Gross Unrealized LossGross Unrealized LossFair Value of Fixed Maturity Securities with Gross Unrealized GainGross Unrealized Gain
Basic Industry$3,240.4 $385.4 $209.0 $4.2 $3,031.4 $389.6 
Capital Goods3,991.7 569.0 262.3 4.7 3,729.4 573.7 
Communications2,774.2 472.3 156.3 4.1 2,617.9 476.4 
Consumer Cyclical1,624.7 190.4 188.5 6.5 1,436.2 196.9 
Consumer Non-Cyclical7,093.5 1,083.1 438.5 15.6 6,655.0 1,098.7 
Energy3,587.6 598.4 86.5 4.2 3,501.1 602.6 
Financial Institutions3,873.0 402.5 436.4 10.4 3,436.6 412.9 
Mortgage/Asset-Backed689.6 61.1 0.6 0.1 689.0 61.2 
Sovereigns1,161.1 221.2 110.9 7.2 1,050.2 228.4 
Technology1,848.5 156.0 162.1 3.7 1,686.4 159.7 
Transportation2,050.3 255.1 94.0 2.7 1,956.3 257.8 
U.S. Government Agencies and Municipalities5,164.3 683.4 636.2 12.5 4,528.1 695.9 
Public Utilities6,529.4 1,195.4 285.4 10.8 6,244.0 1,206.2 
Total$43,628.3 $6,273.3 $3,066.7 $86.7 $40,561.6 $6,360.0 
Gross Unrealized Loss on Fixed Maturity Securities by Length of Time in Unrealized Loss Position
Investment-GradeBelow-Investment-Grade
CategoryFair ValueGross Unrealized LossFair ValueGross Unrealized Loss
Less than 91 days$2,213.1 $42.8 $34.5 $0.4 
91 through 180 days5.2 0.2 2.0 — 
181 through 270 days492.0 26.3 38.7 2.0 
271 days to 1 year52.3 1.4 63.9 2.1 
Greater than 1 year89.9 3.9 75.1 7.6 
Total$2,852.5 $74.6 $214.2 $12.1 

15.1


Appendix to Statistical Supplement

2021 Significant Items

Third quarter of 2021 amortization of the cost of reinsurance of $19.7 million before tax, or $15.5 million after tax.
Third quarter of 2021 reserve assumption updates resulting in a reserve reduction of $215.0 million before tax, or 169.9 million after tax, in our Unum US group long-term disability product line and reserve increases of $2.1 million, $6.4 million, and $25.1 million before tax, or $1.7 million, $5.1 million, and $19.8 million after tax, in our Closed Block long-term care, Closed Block individual disability, and Closed Block group pension product lines, respectively.
Third quarter of 2021 impairment loss of $12.1 million before tax, or $9.6 million after tax, on previously capitalized internal-use software that we no longer plan to utilize.
Second quarter of 2021 amortization of the cost of reinsurance of $19.7 million before tax, or $15.5 million after tax.
Second quarter of 2021 cost related to the early retirement of debt of $67.3 million before tax, or $53.2 million after tax.
Second quarter of 2021 impairment loss of $13.9 million, or $11.0 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.
Second quarter of 2021 U.K. tax rate increase from 19 percent to 25 percent, effective April 1, 2023, which resulted in $24.2 million of additional tax expense through continuing operations for the revaluation of our deferred tax assets and liabilities.
In December 2020, we completed the first phase of a reinsurance transaction, pursuant to which 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", each entered into separate reinsurance agreements with Commonwealth Annuity and Life Insurance Company (Commonwealth), to reinsure on a coinsurance basis effective as of July 1, 2020, approximately 75 percent of the Closed Block individual disability business, primarily direct business written by the ceding companies. On March 31, 2021, we completed the second phase of the reinsurance transaction, pursuant to which the ceding companies and Commonwealth amended and restated their respective reinsurance agreements to reinsure on a coinsurance and modified coinsurance basis effective as of January 1, 2021, a substantial portion of the remaining Closed Block individual disability business that was not ceded in December 2020, primarily business previously assumed by the ceding companies.

In December 2020, Provident Life and Casualty Insurance Company (PLC), also a wholly-owned domestic insurance subsidiary of Unum Group, entered into an agreement with Commonwealth whereby PLC will provide a 12-year volatility cover to Commonwealth for the active life cohort (ALR cohort). On March 31, 2021, PLC and Commonwealth amended and restated this agreement to incorporate the ALR cohort related to the additional business that was reinsured between the ceding companies and Commonwealth as part of the second phase of the transaction. As part of the amended and restated volatility cover, PLC received a payment from Commonwealth of approximately $18 million.
In connection with the second phase of the reinsurance transaction, Commonwealth paid a total ceding commission to the ceding companies of $18.2 million. The ceding companies transferred assets of $767.0 million, which consisted primarily of cash and fixed maturity securities. In addition, we recognized the following in the first quarter of 2021 related to the second phase:
Net realized investment gains totaling $67.6 million, or $53.4 million after tax, related to the transfer of investments.
Increase in benefits and change in reserves for future benefits of $133.1 million, or $105.1 million after tax, resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income.
Transaction costs totaling $6.2 million, or $5.0 million after tax.
Reinsurance recoverable of $990.0 million related to the policies on claim status (DLR cohort).
Payable of $307.2 million related to the portfolio of invested assets associated with the business ceded on a modified coinsurance basis.
16


Cost of reinsurance, or prepaid reinsurance premium, of $43.1 million related to the DLR cohort. The total cost of reinsurance recognized on a combined basis for the first and second phases was $854.8 million for which we amortized $20.0 million, or $15.8 million after tax, during the first three months of 2021.
Deposit asset of $5.0 million related to the ALR cohort. The total deposit asset recognized on a combined basis for the first and second phases was $91.8 million.

2020 Significant Items

In connection with the first phase of the previously-mentioned reinsurance transaction, the ceding companies paid a total cash ceding commission to Commonwealth of approximately $438 million and transferred additional assets consisting primarily of fixed maturity securities and cash totaling $6,669.8 million. PLC received a payment of $62 million from Commonwealth related to the 12-year volatility cover for the business reinsured during the first phase of the transaction. In addition, we recognized the following in the fourth quarter of 2020 related to the first phase:

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 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 before tax and $18.6 million after tax.
Second quarter of 2020 impairment loss of $12.7 million, or $10.0 million after tax, on a 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.


16.1


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.

16.2


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 prior to pay off in December 2020; 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.

As previously discussed, we have exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021, respectively. As a result, we exclude the amortization of the cost of reinsurance that was recognized upon the exit of the business related to the DLR cohort of policies. We believe that the exclusion of the amortization of the cost of reinsurance 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.

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 16.4, other than book value per common share, which is presented on page 2.


16.3


Reconciliation of Non-GAAP Financial Measures

Three Months Ended
September 30June 30March 31December 31September 30June 30March 31December 31September 30
202120202019
Total Revenue$2,969.7 $2,993.0 $3,072.0 $4,273.5 $2,996.3 $3,021.2 $2,871.1 $3,034.6 $2,960.0 
Excluding:
Net Realized Investment Gain (Loss)(0.1)0.9 84.6 1,304.9 4.4 33.8 (144.0)9.2 (26.2)
Adjusted Operating Revenue$2,969.8 $2,992.1 $2,987.4 $2,968.6 $2,991.9 $2,987.4 $3,015.1 $3,025.4 $2,986.2 

16.4


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 September 30, 2021
Unum US$70.2 $4,527.8 6.2 %
Unum International23.7 803.9 11.8 %
Colonial Life63.2 1,570.3 16.1 %
Core Operating Segments157.1 6,902.0 9.1 %
Closed Block25.8 4,114.0 
Corporate27.6 (930.3)
Total$210.5 $10,085.7 8.3 %
Three Months Ended September 30, 2020
Unum US$148.7 $4,439.5 13.4 %
Unum International4.9 753.3 2.6 %
Colonial Life72.8 1,580.6 18.4 %
Core Operating Segments226.4 6,773.4 13.4 %
Closed Block55.0 4,239.0 
Corporate(35.5)(1,491.8)
Total$245.9 $9,520.6 10.3 %

(1) Excludes net unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.8.
16.5


Reconciliation of Non-GAAP Financial Measures - Continued

After-Tax Adjusted Operating Income (Loss)
 Average Allocated Equity(2)
Annualized Adjusted Operating Return on Equity
Nine Months Ended September 30, 2021
Unum US$303.5 $4,523.9 8.9 %
Unum International62.5 801.0 10.4 %
Colonial Life196.7 1,597.9 16.4 %
Core Operating Segments562.7 6,922.8 10.8 %
Closed Block188.6 4,019.5 
Corporate(42.6)(983.1)
Total$708.7 $9,959.2 9.5 %
Nine Months Ended September 30, 2020
Unum US$538.9 $4,484.9 16.0 %
Unum International33.3 769.6 5.8 %
Colonial Life208.4 1,577.3 17.6 %
Core Operating Segments780.6 6,831.8 15.2 %
Closed Block102.6 4,180.2 
Corporate(113.1)(1,626.2)
Total$770.1 $9,385.8 10.9 %

(2) Excludes unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.8. Due to the implementation of a FASB update for which the beginning balance of 2020 for certain stockholders' equity line items were adjusted, we are computing the average allocated equity for 2020 using internally allocated equity that reflects the adjusted beginning balance at January 1, 2020. As a result, average equity for the nine months ended September 30, 2020 for certain of our segments will not compute using the historical allocated equity at December 31, 2019.
16.6



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, 2020
Unum US$651.4 $4,458.2 14.6 %
Unum International51.9 797.7 6.5 %
Colonial Life264.5 1,584.1 16.7 %
Core Operating Segments967.8 6,840.0 14.1 %
Closed Block183.8 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 International88.4 757.9 11.7 %
Colonial Life272.7 1,558.6 17.5 %
Core Operating Segments1,177.4 6,843.1 17.2 %
Closed Block104.4 3,842.2 
Corporate(141.2)(1,764.5)
Total$1,140.6 $8,920.8 12.8 %

(3)Excludes unrealized gain (loss) on securities and net gain on hedges and is calculated using the stockholders' equity balances presented on page 16.8. 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 years ended December 31, 2020 and 2019 for certain of our segments will not compute using the historical allocated equity at December 31, 2019 and 2018, respectively.


16.7


Reconciliation of Non-GAAP Financial Measures - Continued

Average allocated equity is computed as follows:

9/30/20216/30/202112/31/20209/30/20206/30/202012/31/201912/31/2018
Total Stockholders' Equity$11,118.2 $10,947.5 $10,871.0 $10,892.2 $10,561.4 $9,965.0 $8,621.8 
Excluding:
Net Unrealized Gain (Loss) on Securities836.0 911.4 1,067.7 1,104.5 963.1 615.9 (312.4)
Net Gain on Hedges69.5 77.5 97.8 158.7 186.2 187.8 250.6 
Total Adjusted Stockholders' Equity$10,212.7 $9,958.6 $9,705.5 $9,629.0 $9,412.1 $9,161.3 $8,683.6 
Three Months EndedNine Months EndedTwelve Months EndedThree Months EndedNine Months EndedTwelve Months Ended
9/30/202112/31/20209/30/202012/31/2019
Average Adjusted Stockholders' Equity $10,085.7 $9,959.2 $9,424.0 $9,520.6 $9,385.8 $8,920.8 

16.8


Reconciliation of Non-GAAP Financial Measures - Continued

Three Months Ended September 30Nine Months Ended September 30
2021202020212020
(in millions)per share*(in millions)per share*(in millions)per share*(in millions)per share*
Net Income$328.6 $1.60 $231.1 $1.13 $664.5 $3.24 $657.6 $3.23 
Excluding:
Net Realized Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance Transaction (net of tax expense of $—; $—; $14.2; $—)
— — — — 53.4 0.26 — — 
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $—; $0.6; $3.8; $(21.9))
(0.1)— 3.8 0.01 14.0 0.07 (83.9)(0.41)
Total Net Realized Investment Gain (Loss)(0.1)— 3.8 0.01 67.4 0.33 (83.9)(0.41)
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs (net of tax benefit of $—; $—; $29.2; $— )
— — — — (110.1)(0.53)— — 
Amortization of the Cost of Reinsurance (net of tax benefit of $4.2; $—; $12.6; $— )
(15.5)(0.08)— — (46.8)(0.24)— — 
Total Items Related to Closed Block Individual Disability Reinsurance Transaction(15.5)(0.08)— — (156.9)(0.77)— — 
Net Reserve Decrease Related to Reserve Assumption Updates (net of tax expense of $38.1; $—; $38.1; $—)
143.3 0.70 — — 143.3 0.70 — — 
Impairment Loss on Internal-Use Software (net of tax benefit of $2.5; $—; $2.5; $—)
(9.6)(0.05)— — (9.6)(0.05)— — 
Cost Related to Early Retirement of Debt (net of tax benefit of $—; $—; $14.1; $—)
— — — — (53.2)(0.26)— — 
Impairment Loss on ROU Asset (net of tax benefit of $—; $—; $2.9; $2.7)
— — — — (11.0)(0.05)(10.0)(0.05)
Impact of U.K. Tax Rate Increase— — — — (24.2)(0.12)— — 
Costs Related to Organizational Design Update (net of tax benefit of $—; $4.7: $—; $4.7)
— — (18.6)(0.09)— — (18.6)(0.09)
After-tax Adjusted Operating Income$210.5 $1.03 $245.9 $1.21 $708.7 $3.46 $770.1 $3.78 

*Assuming Dilution.
16.9


Reconciliation of Non-GAAP Financial Measures - Continued

Year Ended December 31
20202019
(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 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)
(82.3)(0.40)(18.7)(0.09)
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 Transaction36.5 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; $—)
(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)— — 
Cost 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.
16.10


Reconciliation of Non-GAAP Financial Measures - Continued

After-Tax Adjusted Operating Income Average Allocated EquityAnnualized Adjusted Operating Return on Equity
Three Months Ended September 30, 2021
Unum US Supplemental and Voluntary$91.7 $2,084.4 17.6 %
Three Months Ended June 30, 2021
Unum US Supplemental and Voluntary$89.9 $2,083.8 17.3 %

16.11


Reconciliation of Non-GAAP Financial Measures - Continued

September 30December 31
2021202020202019
Debt$3,441.4 $3,378.6 $3,345.7 $3,326.6 
Including:
Lease Liability 87.3 109.6 105.9 114.7 
Excluding:
Non-recourse Debt— 33.9 — 78.1 
Adjusted Debt and Lease Liability$3,528.7 $3,454.3 $3,451.6 $3,363.2 
Total Stockholders' Equity$11,118.2 $10,892.2 $10,871.0 $9,965.0 
Excluding:
Net Unrealized Gain on Securities and Net Gain on Hedges 905.5 1,263.2 1,165.5 803.7 
Northwind Capital— 987.3 — 984.6 
Equity, As Adjusted10,212.7 8,641.7 9,705.5 8,176.7 
Debt, As Adjusted and Lease Liability3,528.7 3,454.3 3,451.6 3,363.2 
Total Adjusted Capital$13,741.4 $12,096.0 $13,157.1 $11,539.9 
Leverage Ratio25.7 %28.6 %26.2 %29.1 %

16.12