Unum 2010 Annual Report Download - page 155

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153
Unum 2010 Annual Report
Summary
Various lawsuits against us, in addition to those discussed above, have arisen in the normal course of business. Further, state
insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning
our compliance with applicable insurance and other laws and regulations.
Given the complexity and scope of our litigation and regulatory matters, it is not possible to predict the ultimate outcome of all
pending investigations or legal proceedings or provide reasonable estimates of potential losses, except where noted in connection with
specic matters. It is possible that our results of operations or cash ows in a particular period could be materially affected by an ultimate
unfavorable outcome of pending litigation or regulatory matters depending, in part, on our results of operations or cash ows for the
particular period. We believe, however, that the ultimate outcome of all pending litigation and regulatory matters, after consideration
of applicable reserves and rights to indemnification, should not have a material adverse effect on our financial position.
Note 14. Statutory Financial Information
Statutory Net Income, Capital and Surplus, and Dividends
Statutory net income for U.S. life insurance companies is reported in conformity with statutory accounting principles prescribed by
the NAIC and adopted by applicable domiciliary state laws. The commissioners of the states of domicile have the right to permit other
specific practices that may deviate from prescribed practices. For the years ended December 31, 2010, 2009, or 2008, none of the states
of domicile for our U.S. insurance subsidiaries had adopted accounting practices that differed materially from statutory accounting
principles prescribed by the NAIC.
The statutory operating results of our traditional U.S. insurance subsidiaries, which exclude Tailwind Re and Northwind Re, as well as
the statutory results for these two special purpose financial captive U.S. insurance subsidiaries, are as follows:
Year Ended December 31
(in millions of dollars) 2010 2009 2008
Combined Net Income
U.S. Traditional Insurance Subsidiaries $628.8 $639.2 $540.8
Tailwind Re and Northwind Re $ 79.1 $ 87.2 $ 79.8
Combined Net Gain from Operations
U.S. Traditional Insurance Subsidiaries $645.7 $741.2 $682.0
Tailwind Re and Northwind Re $ 79.2 $ 87.2 $ 81.2
Statutory capital and surplus is as follows:
December 31
(in millions of dollars) 2010 2009
Combined Capital and Surplus
U.S. Traditional Insurance Subsidiaries $3,395.1 $3,286.9
Tailwind Re and Northwind Re $1,276.9 $1,300.0
Restrictions under applicable state insurance laws limit the amount of dividends that can be paid to a parent company from its
insurance subsidiaries in any 12-month period without prior approval by regulatory authorities. For life insurance companies domiciled in
the United States, that limitation generally equals, depending on the state of domicile, either ten percent of an insurer’s statutory surplus