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Unum 2007 Annual Report 71
The following table is a distribution of the maturity dates for fixed maturity bonds in an unrealized loss position at December 31, 2007.
Fixed Maturity Bonds — By Maturity
As of December 31, 2007
(in millions of dollars)
Fair Value of Bonds with Gross
Gross Unrealized Loss Unrealized Loss
Due in 1 year or less $ 167.3 $ 1.0
Due after 1 year up to 5 years 1,124.9 18.0
Due after 5 years up to 10 years 3,948.3 417.1
Due after 10 years 7,856.3 470.3
Subtotal 13,096.8 906.4
Mortgage/Asset-Backed Securities 488.8 6.9
Total $ 13,585.6 $ 913.3
Of the $913.3 million in gross unrealized losses at December 31, 2007, $781.5 million, or 85.6 percent, are related to investment-grade
fixed maturity bonds and result primarily from increases in interest rates or changes in market or sector credit spreads which occurred
subsequent to acquisition of the bonds. The following table shows the length of time the investment-grade fixed maturity bonds had
been in a gross unrealized loss position as of December 31, 2007.
Unrealized Loss on Investment-Grade Fixed Maturity Bonds
Length of Time in Unrealized Loss Position
As of December 31, 2007
(in millions of dollars)
Fair Value Gross Unrealized Loss
Fair value < 100% >= 70% of amortized cost
<= 90 days $ 657.8 $ 8.7
> 90 <= 180 days 500.2 14.4
> 180 <= 270 days 1,701.3 48.7
> 270 <= 1 year 925.9 35.4
> 1 year <= 2 years 4,548.6 198.5
> 2 years <= 3 years 2,786.5 154.2
> 3 years 1,137.7 295.9
Total $ 12,258.0 $ 755.8
Fair value < 70% >= 40% of amortized cost
> 2 years <= 3 years $ 0.7 $ 0.4
> 3 years 54.0 25.3
Total $ 54.7 $ 25.7