Unum 2011 Annual Report Download - page 135

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Unum 2011 Annual Report
Unum
2011
133
A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated
balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
December 31
(in millions of dollars) 2011 2010 2009
Policy and Contract Benefits $ 1,494.0 $ 1,565.0 $ 1,736.9
Reserves for Future Policy and Contract Benefits 43,051.9 39,715.0 37,740.8
Total 44,545.9 41,280.0 39,477.7
Less:
Life Reserves for Future Policy and Contract Benefits 7,454.2 7,380.7 7,247.5
Accident and Health Active Life Reserves 7,259.6 6,451.6 5,999.8
Unrealized Adjustment to Reserves for Future Policy and Contract Benefits 5,245.6 3,108.3 1,644.7
Liability for Unpaid Claims and Claim Adjustment Expenses $24,586.5 $24,339.4 $24,585.7
The unrealized adjustment to reserves for future policy and contract benefits reflects the changes that would be necessary
to policyholder liabilities if the unrealized investment gains and losses related to the available-for-sale securities had been realized.
Changes in these adjustments are reported as a component of other comprehensive income or loss.
Note 6. Income Tax
Total income tax expense (benefit) is allocated as follows:
Year Ended December 31
(in millions of dollars) 2011 2010 2009
Net Income $ 21.8 $ 445.2 $ 439.7
Stockholders’ Equity — Additional Paid-in Capital
Stock-Based Compensation (3.3) (2.7) 1.5
Stockholders’ Equity — Accumulated Other Comprehensive Income (Loss)
Change in Net Unrealized Gains on Securities Not
Other-Than Temporarily Impaired 799.4 519.1 1,454.9
Change in Net Unrealized Gains and Losses on Securities
Other-Than Temporarily Impaired (1.1) (0.5) 1.6
Change in Net Gain on Cash Flow Hedges 25.2 (5.0) (45.3)
Change in Adjustment to Reserves for Future Policy
and Contract Benefits, Net of Reinsurance and Other (703.3) (501.0) (816.6)
Change in Foreign Currency Translation Adjustment — 0.6 —
Change in Unrecognized Pension and Postretirement Benefit Costs (67.4) (12.7) 42.0
Stockholders’ Equity — Retained Earnings
Adoption of ASC 320 Update — Note 1 — — 7.7
Total $ 71.3 $ 443.0 $1,085.5