1. Unum Group
2007 Investor Meeting
November 19, 2007

2. Welcome
Tom White
2

3. Safe Harbor Statement
Statements in this presentation that are not historical facts, such as our earnings per share,
return on equity and our Unum US group income protection benefit ratio guidance,
constitute “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995 and involve risks and uncertainties that could cause actual
results to differ materially from those contained in the forward-looking statements. These
risks and uncertainties include such general matters as general economic or business
conditions; events or consequences relating to terrorism, acts of war and catastrophes,
including natural and man-made disasters; competitive factors, including pricing pressures;
legislative, regulatory, accounting, or tax law changes; and the interest rate environment.
More specifically, they include fluctuations in insurance reserve liabilities; changes in
projected new sales and renewals; variations between projections and actual experience in
persistency rates, incidence and recovery rates, pricing and underwriting; retained risks in
our reinsurance operations; availability and cost of reinsurance; the level and results of
litigation, rating agency actions, and regulatory actions and investigations; actual
experience in implementing and complying with the multistate market conduct regulatory
settlement agreements and the California Department of Insurance settlement agreement;
negative media attention; changes in assumptions relating to deferred acquisition costs,
value of business acquired or goodwill; the level of pension benefit costs and funding;
investment results, including credit deterioration of investments; the ability of our insurance
company subsidiaries to pay dividends or extend credit to us and certain of our intermediate
holding company subsidiaries and/or finance subsidiaries; and effectiveness of product
support and customer service. For further information of risks and uncertainties that could
affect actual results, see our filings with the Securities and Exchange Commission, including
information in the sections titled “Cautionary Statement Regarding Forward-Looking
Statements” and “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2006 and subsequently filed 10-Q. The forward-looking statements in this
presentation are being made as of the date of this presentation, and we expressly disclaim
any obligation to update or revise any forward-looking statement contained herein.
3

4. Agenda
9:00 a.m. Welcome Tom White
Opening Remarks Tom Watjen
Capital Management Bob Greving
Rating Agencies and
Interest Rate Management Tom White
Question and Answer
10:15 a.m. Break
10:30 a.m. Operating Segment Reviews
- Unum US Kevin McCarthy
- Colonial Randy Horn
- Unum UK Susan Ring
Concluding Comments Tom Watjen
Question and Answer
12:00 p.m. Lunch
4

5. Opening Remarks
Tom Watjen
5

6. Introduction
Board
of
Directors
Tom Watjen
President and
Chief Executive Officer
Bob Greving Charles Glick Susan Ring Randy Horn
Kevin McCarthy
EVP EVP CEO President & CEO
President & CEO
Chief Fin Officer General Counsel Unum UK Colonial
Unum US
• Martin Moule • David Parker
Frank Williamson Bob Best Chief Financial Officer SVP
Joe Foley
Unum UK Finance & Risk Mgmt
SVP COO
Financial Operations
SVP & Chief Mkt Ofcr
Colonial
Strat Plng & Corp Dev Unum US
• Roger Martin
Chief Financial Officer
Tom White Eileen Farrar
Unum US
SVP SVP
Investor Relations Human Resources
David Fussell
SVP
Investments
• Martha Leiper
SVP
Portfolio Management
(Bold name indicates in attendance)
Corporate Staff Operations
6

7. Introduction
2007 Highlights
• Operating earnings increased 30%*
– Strong contribution from each business
• Completed claims reassessment process
• Completed securitization
• Formalized capital strategy guidelines
– Announced $700 million share repurchase
* Nine months 2007 operating results
7

8. Introduction
2007 Highlights
Unum US GIP Benefit Ratio Improvement *
96%
95.5%
95.3%
95.1%
95%
94.5%
94% 94.0%
93.9%
93.5%
93.4%
93%
92.7%
92.4%
92.1%
92%
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
* Excludes claim reassessment impact
8

9. Introduction
2007 Highlights
Growing Case Count in all Segments
Unum US GIP Unum US Group Life
6,000
6,000
5,099
+6%
4,823
4,205
%
+10
3,818
4,000
4,000
2,000
2,000
9M-2006 9M-2007
9M-2006 9M-2007
Colonial Unum UK
6,000 1,600
5,506 1,458
5,046 %
+22
+9% 1,193
1,200
4,000
800
2,000 400
9M-2006 9M-2007 9M-2006 9M-2007
9

10. Introduction
Recent Financial Results
Operating EPS Operating Return on Equity
20%
$0.70
$0.60
15%
$0.50
10%
$0.40
5%
$0.30
0%
$0.20
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Core Consolidated CDB
2006 2007
10

11. Introduction
Recent Financial Results
Unum Stock Price
200
150
100
50
0
Mar- Aug- Jan- Jun- Nov- Apr- Sep- Feb- Jul- Dec- May- Oct-
03 03 04 04 04 05 05 06 06 06 07 07
UNM S&P 500
11

12. Introduction
Recent Financial Results
Unum CDS Spreads
450
UNM BB 5 yr CDX Investment Grade 5yr CDX
400
350
300
250
200
1
239 bps
150
100
2
0 bps
50
0
May-04 Nov-04 Jun-05 Jan-06 Aug-06 Mar-07 Oc t-07
Source: JPMorgan
Note: CDX are CDS indices traded by the street
1 Difference between Unum 5yr CDS and Investment Grade 5yr CDX in May 2004
2 Difference between Unum 5yr CDS and Investment Grade 5yr CDX in October 2007
12

13. A Different Company
More Diversified Earned Premium Base
Colonial
IIP-Closed Block
Colonial 11%
13%
IIP-Closed Block 9%
16%
Unum UK
4% Unum UK
Other 12%
1%
Unum US
Other
Supplemental
0%
& Voluntary
13%
Unum US
Supplemental
& Voluntary
Unum US
Unum US
18%
Large-Case
Large-Case
26%
33%
Unum US
Core Market Unum US
24% Core Market
20%
2002 3Q2007
13

14. A Different Company
More Diversified Earnings Base*
IIP-Closed Block IIP-Closed Block
8% 9%
Colonial
Colonial
19%
13%
Unum US
GIP
13%
Unum US
Unum UK
GIP
7%
27%
Other
6%
Unum US
Unum UK
Group Life
24%
16%
Unum US
Unum US
Supplemental Other
Supplemental
Unum US & Voluntary 1%
& Voluntary
Group Life 18%
18%
21%
2002 YTD 2007
* Excludes Corporate segment
14

15. A Different Company
More Sources of Premium Growth
% Increase (Decrease)
$ million $7,890 +10.3%
$8,000 $7,151
$1,014 -8.4%
$7,000
$1,106
$971 +140.8%
$6,000 $403
$906 +42.3%
$637
$5,000
$4,000
$3,000
$5,057 $5,018 -0.8%
$2,000
$1,000
$0
2002 2007 est.
Unum US Colonial Unum UK IIP - Closed Block
15

16. A Different Company
Significant Financial Flexibility
3/31/03 2007 Guidance
Cash at Holding Company $ (755) $ 925
RBC 210% 300%
Debt to Total Capital 30.2% 25%
(as adjusted)
Market Value $2,370 $9,000 (current)
($ millions)
16

17. A Different Company
Solid Investment Portfolio
Credit Quality of Bond Portfolio
Below Baa
Below Baa
6.3%
10.5% Aaa
Aaa 22.7%
27.3%
Baa
Aa
37.7%
8.5%
Aa
Baa
4.1%
38.1%
A A
20.0% 24.8%
9/30/07
12/31/02
17

18. A Different Company
More Predictable Results
Actual vs. Estimated EPS – Previous 12 Quarters
$0.60
Actual EPS Median Estimate
$0.55
$0.50
Quarterly EPS
$0.45
$0.40
$0.35
$0.30
Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep-
04 04 04 04 05 05 05 05 06 06 06 06 07 07 07*
Source: Company filings, IBES and FactSet
* Includes net investment income, operating earnings as reported $.60
18

19. Outlook
Environment
• A continued move to voluntary products
– Underinsured, aging population with limited savings creates demand for
coverage
• Employer budgets under continued pressure
– Creates the need for providing simplicity and flexibility
• Market trends likely to lead to increased regulation
– Requires management to be more aware of the environment
19

20. Outlook
Focus
• Consistent execution of our operating plans
• Maintain emphasis on disciplined, profitable growth
• Better leverage our leadership position
20

21. Outlook
Outstanding Issues
• Direction of the economy
• Completion of regulatory claims examination
• Consistent execution
21

22. Outlook
Financial Dynamics
Allocated 3Q-2007
Allocated 3Q-2007
Stockholders’ Equity Leveraged ROE
Stockholders’ Equity Leveraged ROE
$1,009 32.4%
$2,594 2.3%
$843 24.2%
$6,392 15.5% $4,540 10.2%
Unum UK
IIP - Closed Block
Colonial
Core Operations
- Unum US
Unum US
- Colonial
- Unum UK
$ Millions
22

23. Outlook
Short-term Guidance: 2008 Expectations
Earnings Per Share $2.35 to $2.40*
Return on Equity: Core 15.5% to 16.0%
Total Company 11.0% to 11.5%
Capital Position
Liquidity >$300mm
Leverage 24% - 25%
RBC 315% - 325%
*Assumes ATOE growth of 9% - 10% and mid-year execution of announced share repurchase.
23

24. Outlook
Long-term Trends: 2009 and Beyond
3Q-2007 Target
ROE ROE
Unum US 10.2% 11% - 13%
Unum UK 32.4% 26% – 28%
Colonial 24.2% 20% – 22%
Core Total 15.5% 15% – 16%
IIP - Closed Block 2.3% 2% - 3%
Company Total 11.2% 11.5% - 13.0%
24

25. Closing Comments
• Strong Operating Performance
• Completed Claims Reassessment Process
• Completed Closed Block Securitization
• Formalized Capital Management Guidelines
– Announced $700 million share repurchase
• Solid Plans for 2008
25

26. Capital Management
Bob Greving
26

27. Agenda
• Capital Management
– Northwind
– Beyond Northwind
• Enterprise Risk Management
• Guidance for 2008
27

28. Capital Management
28

29. Securitization Overview
• The Northwind securitization transaction creates a rating agency
and market validated capital structure for our IIP - Closed Block of
business that enhances the overall efficiency of our capital.
• The dynamics of the IIP - Closed Block securitization are similar to
the mechanics involved in a XXX securitization.
• The basic steps with Northwind involved:
Formation of a new holding company (Northwind Holdings, LLC) issuer of $800
1
million in debt securities; sold in a private placement transaction
2 Capitalization of a newly created captive reinsurance company (Northwind Re)
3 Reinsurance of the IIP - Closed Block business
Payment of extraordinary dividends to release excess capital from insurance
4
subsidiaries to holding company
29

30. Diagram of Transaction
Unum
Holding
Company
Equity Dividends
Over Time Bond Insurer
um
mi
Excess Capital e
Pr
4 Released with
Northwind
Risk Transfer
Credit
Pr
Holdings, LLC wrap
oc
ee
ds
te r 1
In
Investors
2
Capital
pr est
(non-recourse
inc an
ipa d
l to Unum)
Dividends
Over Time
Ceding Commission
Insurance subs
3 Northwind Re
–PLA, PRL, UA
Reinsurance
contract
30

31. Improved Capital Structure
Allocated Stockholders’ Equity, IIP – Closed Block
as of September 30, 2007 Amount Represented by
Non-Recourse Debt
Actual Pro Forma
Amount Represented by Unum’s
$2,594
Allocated Stockholders’ Equity
$2,190
Benefits
• Financial markets validate
appropriate reserves and
$800 capital level; less total
allocated stockholders’
equity
• Unum capital substituted
with debt financing tied to
block’s performance; no
refinancing risk
• Debt issued is non-recourse
$1,390
to Unum Group creditors
• Transaction yield enhanced
financial flexibility at both
the subsidiary and holding
company levels
($ millions)
31

32. Capital Movements
Results
+$800
• Ceding companies
capitalized at 300% RBC
• Northwind Re capitalized
+$1,600 at 200% RBC
• Pricing of Northwind
Holdings debt validates
$1,130
appropriate capitalization
-$1,270
for reinsured policies
• $1.1 billion available for
use by Unum Group
Statutory Capital Non-recourse Capitalization of Net Proceeds
Potentially Northwind Debt Northwind Re from
Available from Securitization
Closed Block
($ millions)
32

33. Northwind Benefits
• This transaction added to our consistent operating performance,
further strengthens our balance sheet position, and creates
shareholder value through a share repurchase of up to $700
million.
• The use of Northwind proceeds coupled with the excess capital at
the holding company level will be redeployed to meet the following
metrics:
– Boost RBC to 320%
– Reduce debt by $800 million
• $150 million retired in Feb 2007
• $150 million PINES call
• $400 million debt tender
• $100 million other debt retirement
– Target holding company liquidity of $300 million
33

34. Debt Maturity Profile
700
Long-term debt New Debt Callable bonds ACES $150m
600 PINES
ACES Participation
called
$150m
500
400
$150
300
$500
200 $332
$325
$300
$250 $250
$200
100 $175
$0
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2018 2022 2027 2028 2032 2038
$400m Tender Offer Targets
$ millions
An additional $100 million of debt will be retired during 2008
34

35. Capital Deployment Plan
Results
• RBC increases to 320%
+$1,130 • Leverage maintained
at 25%
• Holding company
-$350 liquidity above target of
one year of fixed
charges
• Share repurchase of up
$925
to $700 million
-$800
• ROE enhanced by 70
basis points; EPS
>$300
increases with share
repurchase
-$700
Holding Net Proceeds Increase Debt Maximum Stock Estimated Net Holding
C ompany from C apital & Repurchase Repurchase C ash Flow for C ompany
Liquidity - 2007 Securitization Surplus of 2008 Liquidity - 2008
Estimate Prior Insurance Estimate
to Northwind C ompanies
($ millions)
35

36. Beyond Northwind
• We have adopted a formal Capital Management Strategy.
• We intend to manage our business with these threshold targets:
– 300% RBC
– 25% leverage ratio, excluding non-recourse debt
– Holding company cash equal to one year of fixed charges
• We may leverage our working knowledge of the securitization
market to add further efficiencies.
36

37. Beyond Northwind
2007 pro forma
Special purpose
reinsurance vehicles
Unum Group
Excluding Special
Purpose Reinsurance
Tailwind UPIL Northwind
Vehicles
1) RBC - Traditional U.S Life Insurance
Company 322% 228% 200% 200%
2) Leverage 25.0% 85.7% NM 34.9%
Adjusted for pensions and leases 30.1% 85.7% NM 34.9%
3) EBIT coverage 8.8x 3.0x NM 3.0x
Adjusted for pensions and leases 7.3x 3.0x NM 3.0x
4) Cash coverage 6.6x 4.2x NM 2.9x
NM – not meaningful
37

38. Enterprise Risk Management
38

39. Enterprise Risk Management
Board of Directors
Audit Committee
• We have established an
appropriate governance structure
for ERM at the Company.
Executive Risk
Management
• Our ERM structure allows for risk Committee
management oversight at both an
enterprise level as well as a CRO
business unit level.
• ERM is embedded within our
business planning process down
to the functional level. Unum US Colonial Unum UK Corporate
Risk Risk Risk Risk
Committee Committee Committee Committee
39

40. Enterprise Risk Map
Unum Group
Strategic Risk
Rating/Financial Flexibility
Customers, Products, and
Credit Risk Market Risk Insurance Risk Operational Risk
Services
Bonds Portfolio Strategy/Hedging Pricing and Underwriting Claims Mgmt Products and Services
Reinsurance Interest Rate Reserving Customer Service Distribution
FX IT Security
Business Concentrations Reputation
Human Resources
Catastrophe
Risk and
Business Continuity
Key: Capital Allocation
Major Risk Category
Risk Type
Regulatory and Compliance
Governance and Legal
40

41. Enterprise Risk Activities
• Enterprise risk management focus areas include:
– Credit risk and Interest Rate risk
– Business Diversification
– Financial Flexibility – including liquidity, capital adequacy, and market access
• Management has taken several steps in these areas to better
position the organization’s risk profile, including:
– Maintenance of a conservative, high quality asset portfolio
– Increased diversification within operating segments and across the organization
– A stronger financial platform which includes greater holding company liquidity
and flexibility, as well as stronger subsidiary capital
– Development of access to the capital markets through our securitization efforts
and credit facility development
41

42. Enterprise Risk Areas of Focus
Unum Group
Strategic Risk
Rating/Financial Flexibility
Customers, Products, and
Credit Risk Market Risk Insurance Risk Operational Risk
Services
Bonds Portfolio Strategy/Hedging Pricing and Underwriting Claims Mgmt Products and Services
Reinsurance Interest Rate Reserving Customer Service Distribution
FX IT Security
Business Concentrations Reputation
Human Resources
Catastrophe
Risk and
Business Continuity
Key: Capital Allocation
Major Risk Category
Focus Areas
Regulatory and Compliance
Governance and Legal
42

43. Credit Risk
Unum’s Asset Mix as a % of Invested Assets Industry’s Asset Mix as a % of Invested Assets
High Yield
4.1%
ABS/MBS
Investment
17.5%
Grade
High Yield
75.7%
Investment
6.0%
Grade
58.1%
ABS/MBS Mortgages
10.8% 12.8%
Mortgages
2.8% Policy Loans
3.8%
Policy Loans
0.5%
Real Estate
Other Other
0.6%
Real Estate
Equities Equities
3.0% 2.0%
0.1%
1.1% 1.1%
43

44. Credit Risk
Overexposures
Below Inv Grade Credit Exposure $ million
13.9%
$450
14.0%
$400
12.0%
10.8%
$350
10.0%
10.0%
$300
8.7% 8.4%
7.6%
8.0% $250
6.9%
6.4% 6.4% 5.8% 6.0%5.8%
6.0% 6.0% $200
6.0%
$150
4.0%
$100
2.0%
$50
0.0% $0
12/01 12/02 12/03 12/04 12/05 12/06 9/07 A a2 A1 A2 A3 B aa1 B aa2 B aa3 B a1 B a2 B a3 B1 B2 B3 C aa1
4Q02 3Q07
Book Value Market Value
44

45. Interest Rate Risk
Interest Margin Cash Flow To Be Hedged
90 1,400
80 1,200
Basis Points
1,000
70
800
60
600
50
400
40
200
30
GIP IIP LTC 0
2008 2009 2010 2011 2012-2017
GIP IIP LTC
Mismatch
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 9/30/07
Asset Duration 7.81 8.95 7.55 7.71 7.66 7.31
Liability Duration 9.33 9.65 8.00 8.09 7.97 8.03
Mismatch (1.52) (0.70) (0.45) (0.38) (0.31) (0.72)
• Mismatch remains within our tolerance level of ± 10% of liability duration.
45

46. Capital Position
• Strengthened Asset Position.
– Reduced exposure to credit risk
– Hedging and reserve crediting strategies have reduced exposure to interest
rate risk
• Improved Capital Position.
– More capital in holding company, and access to capital through credit
facilities
– Both cash levels and RBC levels are positioned with “rainy day” funds in the
event of a 2007-2008 down-turn
2003 9/30/2007
Holding Company Liquidity $(755) mm1 $925mm 4
Consolidated Risk-based Capital 210% 2 300%
Debt to Total Capital (ex. AOCI) 30.2% 3 24.2%
Source: Company filings, Factset and IBES
1 As of 31-Mar-2003; net of inter-company loans
2 As of 31-Dec-2002
3 As of 31-Mar-2003
4 Projected at year-end 2007
46

47. Capital Position
Criteria Guideline Year-end 2008
RBC ratio for traditional U.S. Insurance Cos. >300% 320%
Leverage 25% 24%
Coverage
Earnings before interest and taxes/interest 5 – 6x 8.8x
Cash coverage of interest 3 – 4x 6.6x
Holding Company liquidity 1x fixed charges Approx. $300m
47

48. Reserves
• Reserves are evaluated annually - at a minimum.
• The IBNR reserve is a relatively small component of the overall
reserve.
– Address some questions we have had
• The IBNR reserve is set up to pay claims that have been incurred
but not yet reported to the company.
– It is a relatively short term reserve with approximately 90% typically released
within a year of initial valuation.
• The IBNR reserve increases or decreases based upon the
underlying risk including:
– The size of the business – measured in premium or lives
– The expected claim incidence
– The expected average cost of each claim
48

49. Reserves
• In addition to the normal movements due to the underlying risk we
have had movement in the IBNR reserve due to the claim
reassessment process.
• Since the beginning of the reassessment process we have recorded
IBNR based upon our estimate of the ultimate claims cost and
subsequently released those reserves as the claims moved to an
approved status.
– IBNR reserves are released but flow into paid claims and reserves.
49

50. ERM – Summary Comments
• Actions in recent years have reduced our exposure to a recession
similar to that experienced in 2001-2002.
• During 2001 the primary sensitivities to the slower economic
cycle were felt by our investment portfolio and by Unum US
disability performance.
• Today we have:
– A more diversified business
– Stronger operational practices
– A lower credit risk profile
– Improved management of our investments
– Stronger capital and improved liquidity
– A more comprehensive enterprise risk management platform
50

51. Guidance for 2008
51

52. 2008 Guidance
• Earnings per Share: $2.35 to $2.40
– After-tax operating earnings: expected growth of 9% to 10%
– Share repurchase: expected mid-year 2008 execution of up to $700 million
share repurchase
– Unum US: continued improvement in GIP benefit ratio to drive slightly above
trend line earnings growth
– Unum UK: below trend line earnings growth reflecting return to more
sustainable long-term benefit ratio
– Colonial: below trend line earnings growth reflecting return to more sustainable
long-term benefit ratio
– IIP – Closed Block: lower earnings in 2008 reflecting lower net investment
income and continued run-off
– Corporate and Other: increased net investment income and lower interest
expense
52

53. Rating Agencies and Interest
Rate Management
Tom White
53

54. Agenda
• Rating Agency Update
• Interest Rate Management
54

55. Rating Agency Update
55

56. Targeting an “A” Rating
• Current Financial Strength Ratings:
– A.M. Best A- (Negative Outlook)
– Fitch A- (Stable Outlook)
– Moody’s Baa1 (Negative Outlook)
– Standard & Poor’s BBB+ (Positive Outlook)
• We believe that our capital management targets combined with
continued consistency in operating results will allow us to achieve
our targeted rating.
• Our message to the agencies:
– Claim reassessment is complete
– GIP results improving and more consistent
– Business mix is improving
– Franchise is strong
– Financial flexibility is strong
56

57. Targeting an “A” Rating
Actual Actual Forecast* Pro forma**
2005 2006 2007 2007
RBC Ratio for traditional US 308% 300% 305% 320%
Insurance Companies
Leverage 30% 25% 25% 25%
Coverage
EBIT 4.8x 5.7x 7.8x 8.8x
Cash Coverage of Interest 4.1x 5.4x 5.5x 6.6x
Holding Company Liquidity $610mm $445mm $925mm >$300mm
* Excludes Northwind transaction
** Assumes full year benefit of Northwind transaction
57

58. Targeting an “A” Rating
450
UNM BB 5 yr CDX Investment Grade 5yr CDX
400
350 Increasing concerns regarding the
sub-prime mortgage market
contribute to significant widening of
spreads
300
250
200
1
239 bps
150
100
2
0 bps
50
0
May-04 Nov-04 Jun-05 Jan-06 Aug-06 Mar-07 Oc t-07
Source: JPMorgan
Note: CDX are CDS indices traded by the street
1 Difference between Unum 5yr CDS and Investment Grade 5yr CDX in May 2004
2 Difference between Unum 5yr CDS and Investment Grade 5yr CDX in October 2007
58

59. Interest Rate Management
59

60. Interest Rate Management: Philosophy
• The mission of the Investment Department is to support corporate
objectives by delivering consistent, quality net investment income.
• We will quantify and limit interest rate risk.
– Asset/liability cash match
– Minimize duration mismatch
– Hedge future cash flows
• We will invest in assets that support product portfolios in a
capital-efficient manner according to pricing and reserving
assumptions.
60

61. Interest Rate Margin
Interest Reserve Margins are at or above Target Range
Basis Points
80
70
60
Target
Range
50
40
30
IIP - Closed LTC Unum UK
Unum US Unum US
Block
GIP IIP -
Recently
Issued
Interest Reserve Margins as of 9/30/07
61

62. Hedging Strategies
Historic 10 & 20 yr Swap Rates (3 yrs Forward)
$302 $157 $100
7.0
$2,900
$800
6.5
Swap Rates
$221
$230
$170
6.0
$110
5.5
5.0
4.5
Source: LehmanLive.com
NUGGETTAG:userName=null&plotName=null
2002 2003 2004 2005 2006 2007
USD SWAP 20Y rate USD SWAP 10Y rate
Note: Hedge activity represented by circles.
62

63. Hedging Schedule
Current Hedged Position Unhedged Cash Flows
Total Total
IIP GIP LTC IIP GIP LTC
4Q07 $95 $90 $85 $270 –
4Q07 – – –
$565
2008 $160 $80 $325 $155
2008 $57 – $98
$380
2009 $85 – $295 $160
2009 $22 – $138
$240
2010 – – $240 $212
2010 $38 – $174
$205
2011 – – $205 $205
2011 $24 – $181
Total $340 $170 $1,150 $1,660 Total $141 – $591 $732
Given the current interest rate environment in conjunction with our
current hedge position, we anticipate no near-term adjustments to our
new claim discount rate.
63

64. New Money Rates Versus Portfolio Yield
10%
8.02%
7.76%
8%
7.15%
6.93% 6.85% 6.73% 6.72% 6.69% 6.70%
6%
4%
2%
0%
12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 3/31/07 6/30/07 9/30/07
Current Portfolio Y ield 10-Year Treasury
64

65. Discount Rate Sensitivity
• As part of our interest rate management, we monitor the impact of
changes of our discount rate on reserve requirements for our
business lines.
• As of quarter-end 3Q07, a 25 basis point reduction in our discount
rate would have necessitated an increase in product line reserves
of
– $4 million for Group Long-term Income Protection
– $5 million for Individual Income Protection - Closed Block
– $1 million for Individual Income Protection – Recently Issued
• We do not anticipate the need to make discount rate changes over
the next several quarters.
65

66. Operating Segment Review
Unum US
66

67. Agenda
• Review of 2007 Business Operations
• Unum US Today
• 2008 Outlook and Opportunities
• Summary
67

68. Review of 2007 Business Operations
68

69. 2007 Business Operations Review
• Group Income Protection performance and benefit ratio trend has
continued to meet stated objectives.
• Initiatives to diversify the business away from a predominantly
income protection product base and employer-paid product focus
has been met with initial success and we plan to build on this
momentum.
• Our growth strategy remains consistent with our commitment to
pricing discipline.
69

70. 2007 Business Operations Review
Group Income Protection
• Group Income Protection performance has had significant and
noticeable improvement.
– GIP benefit ratio decreased 60 basis points from 2Q07 to 92.1% in 3Q07
– Current ratio represents a significant improvement from 3Q06 of 94.5%
– Remain on target to achieve 90%-92% target by the end of 4Q07
• We are targeting an 88% to 89% GIP Benefit Ratio in the 2008 to
2009 time frame.
– Benefit ratio improvement will be driven by continued sales mix shift,
underwriting discipline and benefit operations improvements
• Improvement to target ranges will result in BTOE/Premium
margin of 13.0% to 15.0% for the Unum US operating segment
and a leveraged ROE of 11% to 13%.
70

71. Benefits Operations
• The Benefits Operations organization is now positioned for stable,
sustainable performance.
• The key elements of Benefits Operations performance are:
– Increased staffing levels, decreased span of control and greater management
involvement in day to day claim decisions
– An enhanced claim inventory management system
– A greater focus on quality reviews leading to more consistent and predictable
outcomes
• Benefits Center Operations includes Legal Department oversight.
– Dedicated team of attorneys provide oversight controls, monitoring and assisting
in both claims response and complaint resolution
• Relatively steady decline in the number of new legal cases opened in a given
year
– New cases have decreased by 76.7% since 2003
71

72. Benefits Operations
Unum US GIP Benefit Ratio
96%
95.5%
95.1%
95%
94.5%
94.0%
93.9%
94%
93.4%
93%
92.7%
92.4%
92.1%
92%
3Q05* 4Q05 1Q06* 2Q06 3Q06* 4Q06 1Q07 2Q07* 3Q07
* Excludes claim reassessment impact
72

73. Business Mix Shift
Group Long-term Income Protection
Current 2001 2006 9M-2007 Inforce
Inforce Mix New Sales New Sales New Sales Goal
28% 36%
37% 40% 40%
Small Small
Small Small Small
17%
Mid
16% 16%
16%
Mid Mid
20%
Mid
Mid
55%
48%
47% Large
Large 44% 40%
Large
Large Large
73

74. Business Mix Shift
Group Long-term Income Protection-Average Case Size
$ in millions
$50,000
$39,426
$38,469 $40,086
$40,000
$30,298
$28,461
$30,000
$26,412
$18,114
$20,000
$10,000
2001 2002 2003 2004 2005 2006 9M-07
74

75. Group Life and AD&D
Premium Income
$ in millions
• Continuing to see a positive
$1,800
$1,662
trend in the benefit ratio.
$1,606 $1,623
$1,600
$1,463
$1,399 • Despite increasing competition,
$1,400
we are maintaining our position
while continuing our pricing
$1,200
discipline.
$1,051
$932
$1,000
• Bundled with GIP product.
$800
2002 2003 2004 2005 2006 9M-06 9M-07
Benefit Ratio
100%
77.0% 76.6%
77.7% 76.0% 76.3% 73.9%
80%
60%
40%
20%
0%
2002 2003 2004 2005 2006 9M-07
75

76. IIP Recently Issued
Multi-Life Sales as % IIP Sales
100% • Better risk-reward tradeoff than
93.4%
“pure” individual business.
90.2%
90%
85.1%
81.0%
76.6%
80% • Benefit ratio performance trending
73.1%
lower, as a result of both pricing
70%
discipline and a stronger claims
management process.
60%
50%
• Complementary line to GIP and
2002 2003 2004 2005 2006 9M-07
VWB.
Interest Adjusted Loss Ratio *
70%
60%
46.0%
50%
43.8% 43.5% 42.4%
39.9% 41.5%
40%
30%
20%
10%
0%
2002 2003 2004 2005 2006 9M-07
* As adjusted for special items (’04 to ’05)
76

77. Long Term Care
• Focus has shifted from individual
$ in millions
Total LTC Sales
product to group product,
$100
$87.2
$70.9 leveraging our existing distribution
$80
system.
$60
$38.2 $34.1 $36.1
$40
• Maintaining pricing discipline with
$28.0
$22.2
$20 new policy issuance.
$0
2002 2003 2004 2005 2006 9M-06 9M-07
• Rate increase activity is underway
on the in-force individual block.
LTC Sales Mix
100%
80%
60%
70%
40% 76%
62%
49%
20% 38%
27%
0%
2002 2003 2004 2005 2006 9M-07
Group LTC Individual LTC
77

78. Long Term Care
Individual LTC Rate Increase Activity
• We are currently in the process of repricing our individual long-
term care product and are seeking approval on a state by state
basis.
• For those effected, the repricing will increase premiums by a total
of 20.0% to 30.0% within a phased-in two year period.
• Rate increases will impact less than 16% of our current
policyholders.
• At present this process has resulted in 46 state approvals and
$38.0 million in annual additional premium.
• We are experiencing strong persistency.
78

79. Voluntary Benefits
Premium Income
$ in millions
$400
$382
• Positive trends in the benefit
$340 ratio as the business mix shifts
$350
to disability, accident and
supplemental health lines.
$302
$293 $286
$300
$259
• Positive growth trend as VWB
$250
portfolio expands into the
$209 supplemental health lines.
$200
2002 2003 2004 2005 2006 9M-06 9M-07
• Continued opportunities for
Benefit Ratio
integration with Group products
100%
through Simply Unum offering.
77.9% 72.5%
80%
69.0% 66.3% 62.6% 59.4%
60%
40%
20%
0%
2002 2003 2004 2005 2006 9M-07
79

80. Unum US Today
80

81. Unum US Today
• A more diversified business with a focus on core markets and the
emerging employee paid product area.
• A profitable growth focus that emphasizes underwriting discipline
rather than sales volume and market share.
• A stronger operational focus on consistent quality enabling us to
better withstand any downward economic shift.
81

82. Portfolio Diversification
Business Mix – Inforce Premium
VWB,
4.3%
VWB,
LTC, 9.0%
7.4%
LTC,
IIP RI, 10.7%
GLTIP,
8.0% GLTIP,
37.9%
38.3%
IIP RI,
9.6%
Group
Life and
AD&D,
Group
30.0%
Life and
GSTIP,
AD&D,
9.7%
GSTIP, 22.9%
12.0%
2002 3Q2007
82

83. Industry Diversification
Other,
13.0% Services, 15.5%
Public Sector,
5.0%
Banking and
Finance,
7.4%
Retail,
9.0%
Education, 7.5%
Transportation
and Utilities, 4.8%
Healthcare, 20.8%
Construction and
Manufacturing,
17.0%
* In-force premium as of 3Q07
83

84. Geographic Diversification
WA
ME
MT
ND
VT
NH
MN
OR MA
WI NY
SD
ID
MI CT RI
WY PA
NJ
IA NYC
NE
IN OH
DE
IL
UT
NV WV VA
CO
MD
DC
CA KS MO
KY
NC
TN
AR
OK
SC
NM
AZ
AL
GA
MS
$100 million plus Alaska
LA
$50 million - $100 million TX
Hawaii
$20 million - $50 million FL
Puerto Rico
$5 million - $20 million
$5 million and below
*In-force premium as of 3Q07.
84

85. Underwriting
Pricing Discipline
• We have adopted more conservative underwriting practices
compared to 2001.
– Focus on profitable growth, not market share
– Heightened accuracy of rate calculation and the addition of a formal quality
review program
• Significantly higher GLTIP premium per life:
$400
$305
$300
$245
$205
$200 GLTIP Prem/Life
$100
$0
2001 2001* 2007 * Adjusted for salary and aging
changes over time.
85

86. Incidence Trends
Long-term Disability Incidence Index
100%
-4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Quarters from end of 2001 Recession
86

87. Relative Incidence by Case Size
Group Long-term Income Protection: Incidence by Case Size
1.10
1.00 Aggregate
0.80
Small Mid Large
87

88. Benefits Operations
Operational Efficiency
• Benefit operations are now positioned for stable, sustainable
performance levels.
• Management changes and the new organizational structure have
led to improved results.
– Increased staffing levels, decreased span of control, and greater management
involvement are paying dividends
– The claim inventory management system has improved management
effectiveness
• We are better positioned to maintain performance levels in the
event of a potential recession.
– Integration issues associated with the merger are behind us
– The new claims process forged from the RSA agreement is a more sustainable
business model
88

89. 2008 Outlook and Opportunities
89

90. 2008 Outlook and Opportunities
Business Mix – Sales Premium
Group
VWB,
Large,
7.8%
Group 23.3%
LTC, Large,
5.8% 44.7%
VWB,
Group
26.8%
IIP RI, Core,
8.4% 32.2%
Group
Core ,
33.3%
LTC,
IIP RI,
6.9%
10.8%
2002 3Q2007
90

91. 2008 Outlook and Opportunities
VWB Sales Growth
$ in millions
$160
$134.2
$130.2
$114.1
$120
$109.3
$108.7
$105.8
$79.1
$80
$40
$0
2002 2003 2004 2005 2006 9M-06 9M-07
91

92. 2008 Outlook and Opportunities
Unum Short Term Disability Sales
• The market continues to
move toward greater 55%
19%
employee-funding.
81%
• The growth of employee
CHOICE elevates the
importance of DELIVERY
EXCELLENCE to customers
and their advisors:
45%
– Enrollment
– Communication
– Individual employee
administration
– Post-termination relationship
with carrier (portability)
2001 2006
100% EE Funded
100% ER Funded or Mixed
92

93. 2008 Outlook and Opportunities
Converging Trends Point to a Customer Solution
“Just make it easy for me” “We have no choice but to pass on more
of the cost to employees”
Benefits people desire Growth in voluntary
easy administration and mixed funding
Voluntary and
Easy
mixed funding
administration
Reduced
Choice
complexity
One size Need for
does not fit all reduced complexity
“I want to feel knowledgeable when
“I want to provide a plan that will meet
I talk about this with customers”
the specific needs of my customers.”
93

94. 2008 Outlook and Opportunities
Simply Unum.
Simply Better.
• Simply Unum combines Group & Voluntary coverages on one fully-
integrated platform, Unum enrollment resources, and employer cost
management capabilities.
• In 3Q07, Simply Unum was launched in four markets.
• Marketplace reaction from brokers and customers has been very
positive.
• The national roll-out of Simply Unum is scheduled for 1Q08.
94

95. 2008 Outlook and Opportunities
Growth Through Customer Integration
• Simply Unum offering is geared toward increasing customer
integration with customers in the <500 lives group.
• Approximately 60,000 customers in the less than 500 lives
segment.
• Have had success in integration with customers with greater than
500 lives.
– 80+% of Group Long Term Income Protection customers are integrated with
another group coverage
– 15+% of Group Long Term Income Protection customers are integrated with one
of our Voluntary Benefits products or our Individual Income Protection product
95

96. 2008 Outlook and Opportunities
Case Sales Growth
2003 2007 2011
96

97. 2008 Outlook and Opportunities
Earned Premium Growth
Total Core & Supp Group Large
2003 2007 2011
Earned premium growth emerges in 2009 as large case earned
premium flattens and growth accelerates in group core and
supplemental benefits segment.
97

98. Summary
98

99. Unum US Summary
• We will continue to enhance the performance of our Group Income
Protection line.
– We will meet our 2007 objective of a 90% to 92% benefit ratio within this line
– We anticipate to be within a 88% to 89% benefit ratio range by late 2008 to
early 2009
• We are focused on diversifying our product portfolio through new
initiatives such as Simply Unum and increased focus on voluntary
benefits sales.
– Case sales will continue to grow at 10% to 15% per year and core and
supplemental sales premium growth will improve to 10% to 15%
• Our growth strategy remains consistent with our commitment to
pricing discipline.
– Continued focused renewal program
– Continued large case discipline in both sales and in inforce management
– BTOE/Premium margin will improve to 13.0% to 15.0% and leveraged ROE will
improve to 11% to 13%
99

100. Operating Segment Review
Colonial
100

101. Agenda
• Review of 2007 Business Operations
• Colonial Today
• 2008 Outlook and Opportunities
• Summary
101

102. Review of 2007 Business Operations
102

103. 2007 Business Operations Review
• Sales & Marketing
– Continued emphasis on the growth and development of the agency system
– Implemented nationwide prospecting program targeted at small employers
– Completed next phase of brand development with rollout in January 2008
• Products
– Enhanced product manufacturing capabilities and improved speed to market
– Broadened product portfolio with a new limited benefit medical plan
– Revamped medical gap product to be simpler and more competitive
• Enrollment & Customer Services
– Released update to new enrollment platform with expanded capabilities
– Introduced new capabilities to enhance service for plan administrators
• Financial Stability
– Continued to deliver strong profit margins through disciplined expense and risk
management
103