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66 UNUM • 2014 ANNUAL REPORT
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
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, 2014 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, 2014. The decrease in the unrealized loss on investment-grade fixed maturity securities during 2014 was due primarily to a
decrease in U.S. Treasury rates which occurred during the period. The increase in the unrealized loss on below-investment-grade fixed
maturity securities during 2014 was due primarily to an increase in credit spreads in certain industries or sectors. We held no fixed maturity
securities at December 31, 2014 with a gross unrealized loss of $10.0 million or greater.
Unrealized Loss on Investment-Grade Fixed Maturity Securities
Length of Time in Unrealized Loss Position
2014 2013
(in millions of dollars) December 31 September 30 June 30 March 31 December 31
Fair Value < 100% >= 70% of Amortized Cost
<= 90 days $23.2 $10.1 $ 2.2 $ 4.6 $ 20.0
> 90 <= 180 days 0.7 0.2 — 0.3 11.5
> 180 <= 270 days 0.1 — 0.1 2.9 183.3
> 270 days <= 1 year — — 1.0 85.6 12.6
> 1 year <= 2 years 20.4 34.2 43.6 13.8 11.0
> 2 years <= 3 years 2.2 — — 0.1 —
> 3 years 0.9 3.1 3.4 6.2 6.9
Sub-total 47.5 47.6 50.3 113.5 245.3
Fair Value < 70% >= 40% of Amortized Cost
> 3 years — — — — 2.5
Total $47.5 $47.6 $50.3 $113.5 $247.8
Unrealized Loss on Below-Investment-Grade Fixed Maturity Securities
Length of Time in Unrealized Loss Position
2014 2013
(in millions of dollars) December 31 September 30 June 30 March 31 December 31
Fair Value < 100% >= 70% of Amortized Cost
<= 90 days $20.2 $20.8 $ 0.1 $ 1.2 $ 2.6
> 90 <= 180 days 31.4 0.4 — 0.7 2.5
> 180 <= 270 days — — 0.6 0.9 29.9
> 270 days <= 1 year — 0.5 — 8.1 1.7
> 1 year <= 2 years 12.8 8.4 6.2 1.4 0.9
> 2 years <= 3 years 0.4 0.3 0.5 2.4 4.1
> 3 years 5.7 6.6 7.3 11.3 14.1
Sub-total 70.5 37.0 14.7 26.0 55.8
Fair Value < 70% >= 40% of Amortized Cost
<= 90 days 6.8 — — — —
> 3 years — — — 0.3 0.3
Sub-total 6.8 — — 0.3 0.3
Total $77.3 $37.0 $14.7 $26.3 $56.1