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

51

Unum US Group Disability Operating Results
Shown below are financial results and key performance indicators for Unum US group disability.
Year Ended December 31
(in millions of dollars, except ratios)   2007 % Change 2006

Premium Income
Group Long-term Disability   $1,895.7 (2.9)% $1,953.3
Group Short-term Disability   485.6 (8.4) 530.2
Total Premium Income   2,381.3 (4.1) 2,483.5
Net Investment Income   648.7 1.6 638.5
Other Income   100.1 21.6 82.3
   3,130.1 (2.3) 3,204.3

Benefits and Change in Reserves for Future Benefits   2,277.4 (15.7) 2,702.5
Commissions   167.7 (4.6) 175.8
Interest and Debt Expense   7.5 N.M. 1.3
Deferral of Acquisition Costs   (60.4) (6.4) (64.5)
Amortization of Deferred Acquisition Costs   66.2 (23.4) 86.4
Other Expenses   561.6 (4.6) 588.7
   3,020.0 (13.5) 3,490.2

     $ 110.1 138.5 $ (285.9)
Operating Ratios (% of Premium Income):
Benefit Ratio (1)  95.6% 108.8)%
Other Expense Ratio (2)  23.6% 23.7)%
Before-tax Operating Income (Loss) Ratio (3)  4.6% (11.5)%
Premium Persistency:
Group Long-term Disability  85.1% 87.8)%
Group Short-term Disability  74.0% 85.6)%
Case Persistency:
Group Long-term Disability  88.4% 87.4)%
Group Short-term Disability  87.4% 86.2)%
N.M. = not a meaningful percentage
(1) Included in these ratios are charges of $76.5 million and $349.2 million in 2007 and 2006, respectively, related to the claim reassessment process. Excluding these
charges, the benefit ratios for 2007 and 2006 would have been 92.4% and 94.8%, respectively.
(2) Included in these ratios are increases (decreases) of $(10.3) million and $15.0 million in 2007 and 2006, respectively, related to the claim reassessment process. Excluding
these items, the other expense ratios for 2007 and 2006 would have been 24.0% and 23.1%, respectively.
(3) Included in these ratios are charges of $66.2 million and $364.2 million in 2007 and 2006, respectively, related to the claim reassessment process. Excluding these
charges, the before-tax operating income ratio for 2007 and 2006 would have been 7.4% and 3.2%, respectively.