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March 2, 2009
2009 AIFA ConferenceScottsdale, AZ
Jack McGarrySr. Vice President and Chief Risk OfficerUnum US
2
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 disability 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, particularly the current financial market disruptions and deteriorating
economic 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; 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, 2008. 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.
5
Business Environment: Economic Landscape
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
1Q 1.0% -0.5% 2.7% 1.2% 3.0% 3.0% 4.8% 0.1% 0.9%
2Q 6.4% 1.2% 2.2% 3.5% 3.5% 2.6% 2.7% 4.8% 2.8%
3Q -0.5% -1.4% 2.4% 7.5% 3.6% 3.8% 0.8% 4.8% -0.5%
4Q 2.1% 1.6% 0.2% 2.7% 2.5% 1.3% 1.5% -0.2% -3.8%
2000 2001 2002 2003 2004 2005 2006 2007 2008
GDP
US Non-Farm Employment Lives
100,000
110,000
120,000
130,000
140,000
1Q
89
1Q
90
1Q
91
1Q
92
1Q
93
1Q
94
1Q
95
1Q
96
1Q
97
1Q
98
1Q
99
1Q
00
1Q
01
1Q
02
1Q
03
1Q
04
1Q
05
1Q
06
1Q
07
1Q
08
1Q
09
RecessionJul 90-Mar 91
RecessionMar 01-Nov 01
RecessionDec 07-
Consumer Confidence
0
25
50
75
100
125
150
1Q
89
1Q
90
1Q
91
1Q
92
1Q
93
1Q
94
1Q
95
1Q
96
1Q
97
1Q
98
1Q
99
1Q
00
1Q
01
1Q
02
1Q
03
1Q
04
1Q
05
1Q
06
1Q
07
1Q
08
1Q
09
RecessionJul 90-Mar
RecessionMar 01-Nov
RecessionDec 07-
Yields to Maturity
0.0
2.0
4.0
6.0
8.0
10.0
12.0
A Corp Baa Corp UST 7-10 Yr UST 20+ YrCopyright © 2008 Lehman Brothers Inc.
6
2008
Other0%
Unum US Supplemental& Voluntary
19%
Unum UK11%
Colonial13%
IDI-Closed Block12%
Unum USCore Market
24%
Unum USLarge-Case
21%
Unum USCore Market
24%
Other1%
Unum UK4%
Colonial9%
Unum USLarge-Case
33%
IDI-Closed Block16%
Unum US Supplemental& Voluntary
13%
2002
Business Environment: Corporate Diversification
More Diversified Earned Premium Base
7
In-force Premium - Group, VWB & GLTC
Business Environment: Unum US Industry Diversification
Cyclical 35.3%
Finance 8.2%
Healthcare 17.1%
Education / Services 20.6%
Other 18.7%
2002
Cyclical 28.6%
Finance 7.4%
Healthcare 21.3%
Education / Services 24.3%
Other 18.4%
2008
• Cyclical industries include Manufacturing & Construction, Transportation & Utilities, Wholesale / Retail
8
Economic Environment: Submitted Incidence Trends by Case Size
Submitted Incidence
2002 2003 2004 2005 2006 2007 2008
0-499 500-1,999 2,000+ Total
`
Group Long-term Disability: Submitted Incidence Trend by Case Size
9
Economic Environment: LTD Recessionary Impact
Quarter 0 represents quarter of peak employment lives for recessionary period
Age Adjusted Submitted IncidenceCumulative Quarterly change from employment peak
-3%-2%-1%0%1%2%3%4%5%6%
-8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4
Avg Sub Inc from 90&01 recessions 07 Sub Inc
0%
1111
Growth Strategy: Employee Benefit Market Trends - US
Source: Current Data - LIMRA Feb. 2007 report, “Group Insurance market Potential”. Trend Data – Bain research
HR Operations
15%
Retirement18%
Other Benefits
8%
Health59%
HR Operations
10%
Retirement16%
Other Benefits
4%
Health70%
Total US Employee Benefits Revenue % by Category
Increased propensity to package “other benefits”
2006 2016(Estimates)
12
Growth Strategy: Premium Per Life Trends vs. LTD Industry
Inforce Premium per Life
$217
$229
$252
$270
$303
$219 $219 $222
$218$229 $232 $234
$290
$201$211 $209$205
$216
2002 2003 2004 2005 2006 2007
Unum LTD Industry excluding Unum Industry
Source: JHA Disability Market Surveys
$
13
Growth Strategy: Shifting Size
2002 New Sales
2008New Sales
28% Small
17% Mid
55% Large
43% Small
21% Mid
36% Large
Group Long-term Disability Business Mix
14
Group Long-term Disability - Average Case Size
$38,469 $39,426 $40,086
$30,298
$26,412
$28,461
$23,339$22,833
$10,000
$20,000
$30,000
$40,000
$50,000
2001 2002 2003 2004 2005 2006 2007 2008
$ in millions
Growth Strategy: Reducing Average Case Size
* Fully Insured New Sales
15
Business Mix – Sales Premium
Growth Strategy: Shifting Product Mix
2002
Group Large43.1%
Group Core
33.6%
LTC6.1%
IDI RI8.9%
VWB8.3%
Group Large21.0%
Group Core
42.4%
VB22.6%
IDI RI8.2%
LTC5.8%
2008* 2002 Data do not include AD&D Sales Premium
16
• Benefit ratio continues to reflect improving claims management performance.• Benefit Operations continues to achieve greater consistency in results and
sustain underlying long term performance assumptions.
Group Disability Benefit Ratio*
94.6%
92.7% 93.8%94.8%
92.4%
89.9%
70%
75%
80%
85%
90%
95%
100%
2003 2004 2005 2006 2007 2008
Risk Results
* Excludes impact of RSA settlement
17
Benefit Center Performance
• Management Involvement
• Staffing
• Inventory Management
• Quality Review
18
Group Life and AD&D Benefit Ratio
77.0%76.6%
76.0% 76.3%
72.8%
69.5%
60%
65%
70%
75%
80%
2003 2004 2005 2006 2007 2008
Risk Results
19
72.5%
69.0%
66.3%
62.6%
60.1%
58.0%
50%
55%
60%
65%
70%
75%
2003 2004 2005 2006 2007 2008
Risk Results
Voluntary Benefits Benefit Ratio
20
87.0%
85.5% 85.6% 85.8%
83.1%
80.1%
70%
75%
80%
85%
90%
2003 2004 2005 2006 2007 2008
Group Disability, GL and AD&D, Voluntary Benefits Benefit Ratio
Risk Results
21
7,901
8,856
4,000
7,000
10,000
2007 2008
+12%
Unum US Group Disability
6,531
7,914
4,000
7,000
10,000
2007 2008
+21%
Unum US Group Life
Growth Strategy: Increasing Customer Base
New Sales Case Counts
22
$79.1
$105.8$114.1
$130.2$134.2
$138.4
$158.6
$50
$100
$150
$200
2002 2003 2004 2005 2006 2007 2008
Growth Strategy: Voluntary Market
$ in millionsUnum US Voluntary Benefits Sales Growth
23
2003 2008 2013
Total Core & Supp Group Large
Earned premium growth emerges in 2009 as large case earned premium flattens and growth accelerates in group core and supplemental benefits segment.
2009 Outlook and Opportunities
Earned Premium Growth – Unum US2008-2013 5 Yr CAGR
4.4% Total
8.4%Core &
Supplemental
- 1.5%Group Large
25
Non-GAAP Reconciliation
(in millions) benefit ratio (in millions) benefit ratio (in millions) benefit ratio (in millions) benefit ratio
Unum US Group Disability RatioPremium Income 609.3$ 2,381.3$ 2,483.5$ 2,527.9$ Benefits and Change in Reserves for Future Benefits 641.2 105.2% 2,277.4 95.6% 2,702.5 108.8% 2,397.7 94.8%Regulatory Reassessment Charge (76.5) (76.5) (349.2) (27.3) Benefits and Change in Reserves for Future Benefits, Excluding Regulatory Reassessment Charge 564.7 92.7% 2,200.9 92.4% 2,353.3 94.8% 2,370.4 93.8%
(in millions) benefit ratio (in millions) benefit ratio
Unum US Group Disability RatioPremium Income 2,644.7$ 2,662.6$ Benefits and Change in Reserves for Future Benefits 2,533.1 95.8% 3,412.1 128.1%Regulatory Reassessment Charge (80.2) (894.0) Benefits and Change in Reserves for Future Benefits, Excluding Regulatory Reassessment Charge 2,452.9 92.7% 2,518.1 94.6%
Three Months Ended Twelve Months Ended
December 31, 2004 December 31, 2003
Twelve Months EndedJune 30, 2007 December 31, 2007
Twelve Months Ended Twelve Months Ended
Twelve Months EndedDecember 31, 2006 December 31, 2005
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