Unum 2009 Annual Report Download - page 72

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70
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
Unum
2009
The following two tables show the length of time our investment-grade and below-investment-grade fixed maturity securities had been
in a gross unrealized loss position as of December 31, 2009 and at the end of the prior four quarters. The relationships of the current fair value
to amortized cost are not necessarily indicative of the fair value to amortized cost relationships for the securities throughout the entire time
that the securities have been in an unrealized loss position nor are they necessarily indicative of the relationships after December 31, 2009.
The elevated level of unrealized losses at the end of 2008 and continuing into the early part of 2009 resulted primarily from the significant
widening of credit spreads that occurred in the overall market.
Unrealized Loss on Investment-Grade Fixed Maturity Securities
Length of Time in Unrealized Loss Position
2009 2008
(in millions of dollars) December 31 September 30 June 30 March 31 December 31
Fair Value < 100% >= 70% of Amortized Cost
<= 90 Days $ 62.7 $ 5.5 $ 19.8 $ 95.2 $ 171.3
> 90 <= 180 Days 4.5 1.7 30.2 107.7 342.3
> 180 <= 270 Days 2.3 0.2 47.2 321.8 271.8
> 270 Days <= 1 Year 3.7 2.1 133.4 270.2 292.9
> 1 Year <= 2 Years 84.2 132.6 367.4 598.8 461.4
> 2 Years <= 3 Years 105.4 155.9 303.2 247.7 198.1
> 3 Years 160.6 170.3 435.0 455.9 404.2
Sub-total 423.4 468.3 1,336.2 2,097.3 2,142.0
Fair Value < 70% >= 40% of Amortized Cost
<= 90 Days — — — 4.1 —
> 90 <= 180 Days — — — 2.1 8.6
> 180 <= 270 Days — — 3.0 29.3 76.6
> 270 Days <= 1 Year — 2.7 — 71.0 76.4
> 1 Year <= 2 Years 16.5 — 87.1 197.6 261.2
> 2 Years <= 3 Years 0.2 2.2 94.8 172.9 69.9
> 3 Years 2.4 0.4 39.2 275.3 187.9
Sub-total 19.1 5.3 224.1 752.3 680.6
Fair Value < 40%
> 270 Days <= 1 Year — — — — 6.3
> 1 Year <= 2 Years — — — 43.8 31.3
> 2 Years <= 3 Years — — — 61.7 22.9
> 3 Years 0.5 0.6 0.6 13.2 0.6
Sub-total 0.5 0.6 0.6 118.7 61.1
Total $443.0 $474.2 $1,560.9 $2,968.3 $2,883.7