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Unum 2011 Annual Report
Unum
2011
131
Year Ended December 31, 2009
Gain (Loss) Recognized Gain (Loss) Reclassified from Gain (Loss) Recognized
in OCI on Derivatives Accumulated OCI into in Income on Derivatives
(in millions of dollars) (Effective Portion) Income (Effective Portion) (Ineffective Portion)
Interest Rate Swaps $ 87.7 $ 24.9 (1) $ —
Interest Rate Swaps — 8.1 (2) —
Interest Rate Swaps — (0.1) (4) —
Foreign Exchange Contracts (2.1) (2.8) (1) —
Foreign Exchange Contracts (83.1) (73.4) (2) (2.0) (2)
Foreign Exchange Contracts 42.0 1.7 (3) 14.3 (2)
Total $ 44.5 $(41.6) $12.3
(1) Gain (loss) recognized in net investment income
(2) Gain (loss) recognized in net realized investment gain (loss)
(3) Gain recognized in interest and debt expense
(4) Loss recognized in other income
The following table summarizes the location of and gains and losses on our embedded derivative in a modified coinsurance
arrangement, as reported in our consolidated statements of income.
Year Ended December 31
(in millions of dollars) 2011 2010 2009
Gain (Loss) Recognized in Net Realized Investment Gain (Loss) $(39.4) $21.1 $243.1
Note 5. Liability for Unpaid Claims and Claim Adjustment Expenses
Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
(in millions of dollars) 2011 2010 2009
Balance at January 1 $24,339.4 $24,585.7 $24,419.0
Less Reinsurance Recoverable 2,028.2 2,179.3 2,226.3
Net Balance at January 1 22,311.2 22,406.4 22,192.7
Incurred Related to
Current Year 4,684.4 4,517.9 4,433.3
Prior Years
Interest 1,262.9 1,268.9 1,285.4
All Other Incurred 209.1 (61.3) (34.7)
Foreign Currency (10.9) (73.9) 206.7
Total Incurred 6,145.5 5,651.6 5,890.7
Paid Related to
Current Year (1,588.6) (1,514.8) (1,451.6)
Prior Years (4,324.2) (4,232.0) (4,225.4)
Total Paid (5,912.8) (5,746.8) (5,677.0)
Net Balance at December 31 22,543.9 22,311.2 22,406.4
Plus Reinsurance Recoverable 2,042.6 2,028.2 2,179.3
Balance at December 31 $24,586.5 $24,339.4 $24,585.7