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Notes to Consolidated Financial Statements
102 Unum 2007 Annual Report
Of the $944.6 million in gross unrealized losses on fixed maturity securities and the derivatives that hedge these securities at
December 31, 2007, $799.6 million, or 84.6 percent, are related to investment-grade fixed maturity securities. Unrealized losses on
investment-grade fixed maturity securities principally relate to changes in interest rates or changes in market or sector credit spreads
which occurred subsequent to the acquisition of the securities.
The gross unrealized loss on below-investment-grade fixed maturity securities was $145.0 million at December 31, 2007, or
15.4 percent, of the total gross unrealized loss on fixed maturity securities. Generally, below-investment-grade fixed maturity securities
are more likely to develop credit concerns.
The following charts indicate the length of time our fixed maturity securities had been in a gross unrealized loss position as of
December 31, 2007 and 2006.
December 31, 2007
Less Than 12 Months 12 Months or Greater
Gross Gross
(in millions of dollars) Fair Value Unrealized Loss Fair Value Unrealized Loss
Description
United States Government and
Government Agencies and Authorities $ — $ — $ 840.4 $ 28.6
Foreign Governments 128.8 1.9 337.2 4.5
Public Utilities 983.7 26.0 1,521.1 91.9
Mortgage/Asset-Backed Securities 218.7 1.7 270.1 5.2
Derivatives Hedging Available-for-Sale — — (232.6) 232.6
All Other Corporate Bonds 3,245.0 125.8 6,273.2 395.1
Redeemable Preferred Stocks 91.7 8.1 106.5 23.2
Total $ 4,667.9 $ 163.5 $ 9,115.9 $ 781.1
December 31, 2006
Less Than 12 Months 12 Months or Greater
Gross Gross
(in millions of dollars) Fair Value Unrealized Loss Fair Value Unrealized Loss
Description
United States Government and
Government Agencies and Authorities $ 1,068.3 $ 42.6 $ 311.7 $ 24.6
Foreign Governments 278.4 7.6 — —
Public Utilities 871.3 15.5 1,019.3 58.2
Mortgage/Asset-Backed Securities 165.6 1.3 571.4 12.5
Derivatives Hedging Available-for-Sale (36.3) 36.3 (129.5) 129.5
All Other Corporate Bonds 4,283.1 84.0 3,801.3 238.7
Redeemable Preferred Stocks 71.5 0.9 55.7 1.6
Total $ 6,701.9 $ 188.2 $ 5,629.9 $ 465.1
As of December 31, 2007, we held 482 individual investment-grade fixed maturity securities and 89 individual below-investment-
grade fixed maturity securities that were in an unrealized loss position, of which 353 investment-grade fixed maturity securities and
33 below-investment-grade fixed maturity securities had been in an unrealized loss position continuously for over one year.