Unum 2008 Annual Report Download - page 116

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112



Mortgage Loans
At December 31, 2008, mortgage loans were collateralized by office buildings (39.8 percent), industrial buildings (30.5 percent), retail
stores (17.6 percent), and other properties (12.1 percent). Our mortgage loan portfolio is geographically dispersed within the United
States, with the largest concentrations in California (13.2 percent) and Pennsylvania (11.5 percent).
Mortgage loans are impaired when, based on current information and events, it is probable that we will be unable to collect all amounts
due according to the contractual terms of the loan agreement. At December 31, 2008, impaired mortgage loans totaled $5.2 million. We had
no impaired mortgage loans at December 31, 2007 and no valuation allowance for mortgage loans at December 31, 2008 or 2007. We had
deductions of $0.5 million and increases of $0.5 million to the allowance for mortgage loans during 2007 and 2006, respectively.
At December 31, 2008, we had commitments of approximately $4.1 million for commercial mortgage loan originations. The funds will
be due at closing of the mortgage loans.
Net Investment Income
Sources for net investment income are as follows:
Year Ended December 31
(in millions of dollars)  2007 2006
Fixed Maturity Securities  $2,297.4 $2,234.5
Derivative Financial Instruments  17.8 27.5
Mortgage Loans  64.3 54.6
Policy Loans  12.7 12.6
Other Long-term Investments  7.3 9.4
Short-term Investments  49.5 21.0
Gross Investment Income  2,449.0 2,359.6
Less Investment Expenses  17.0 21.0
Less Investment Income on PFA Assets  22.1 18.0
  $2,409.9 $2,320.6
Realized Investment Gain and Loss
Realized investment gains (losses) are as follows:
Year Ended December 31
(in millions of dollars)  2007 2006
Fixed Maturity Securities
Gross Gains   $ 56.0 $ 68.3
Gross Losses  (82.8) (71.1)
Mortgage Loans and Other Invested Assets  19.0 10.3
Change in Fair Value of DIG Issue B36 Derivative  (57.3) (5.3)
Derivatives other than DIG Issue B36  (0.1) —
  $(65.2) $ 2.2