Unum 2006 Annual Report Download - page 190

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SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)
Unum Group (Parent Company)
NOTES TO CONDENSED FINANCIAL INFORMATION
Note 1 - Basis of Presentation
The accompanying condensed financial statements should be read in conjunction with the consolidated financial
statements and notes thereto of Unum Group and Subsidiaries.
Note 2 - Surplus Notes of Subsidiaries
Outstanding surplus debentures issued by insurance subsidiaries to Unum Group (Parent Company) totaled $100.0
million and $250.0 million at December 31, 2006 and 2005, respectively. A $100.0 million surplus debenture due in
2027 was held at December 31, 2006 and 2005. At December 31, 2005, Unum Group also held a $150.0 million
surplus debenture which was redeemed at maturity in December 2006. Semi-annual interest payments are
conditional upon approval by the insurance departments of the subsidiaries’ states of domicile. The weighted
average interest rate for surplus notes of subsidiaries was 8.2 percent in 2006 and 8.4 percent in 2005 and 2004.
Note 3 - Debt
Long-term debt consists of the following:
2006 2005
Ad
j
ustable Conversion-Rate E
q
uit
y
Securit
y
Units @ 8.25% due 2008 $ - $ 575.0
Ad
j
ustable Conversion-Rate E
q
uit
y
Securit
y
Units @ 8.25% due 2009 300.0 300.0
Notes @ 7.25% due 2032, callable at or above
p
ar 150.0 150.0
Notes @ 7.375% due 2032, callable at or above
p
ar 250.0 250.0
Notes @ 6.75% due 2028, callable at or above
p
ar 250.0 250.0
Notes @ 7.25% due 2028, callable at or above
p
ar 200.0 200.0
Notes @ 7.0% due 2018, non-callable 200.0 200.0
Notes @ 7.625% due 2011, callable at or above
p
ar 325.0 575.0
Notes @ 5.997% due 2008 175.0 -
Junior Subordinated Debt Securities @ 7.405% due 2038 250.0 300.0
Medium-term Notes @ 7.0% to 7.2% due 2023 to 2028, non-callable 62.0 62.0
Total 2,162.0$ 2,862.0$
December 31
(in millions of dollars)
The 7.25% notes due 2032 are redeemable at our option on or after June 25, 2007. The adjustable conversion-
rate equity security units, the 5.997% notes due 2008, and the junior subordinated debt securities due 2038 are
callable under limited, specified circumstances. The remaining callable debt may be redeemed, in whole or in
part, at any time. The aggregate contractual principal maturities are $175.0 million in 2008, $300.0 million in
2009, $325.0 million in 2011, and $1,362.0 million in 2012 and thereafter.
The scheduled remarketing of the senior note element of the adjustable conversion-rate equity security units
(units) issued in May 2004 occurred in February 2007, as stipulated by the terms of the original offering, and we
reset the interest rate on $300.0 million of senior notes due May 15, 2009 to 5.859%. We purchased $150.0
million of the senior notes in the remarketing which were subsequently retired.
The scheduled remarketing of the senior note element of the units issued in May 2003 occurred in February
2006, as stipulated by the terms of the original offering, and we reset the interest rate on $575.0 million of senior
notes due May 15, 2008 to 5.997%. We purchased $400.0 million of the senior notes in the remarketing which
were subsequently retired.