Unum 2011 Annual Report Download - page 83
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Unum 2011 Annual Report
Unum
2011
81
On January 26, 2011, AM Best upgraded its ratings of Unum Group and its domestic operating subsidiaries to bbb and A, respectively,
with the exception of Paul Revere Variable which retained its B++ rating, and revised the outlook for the Company and its subsidiaries to
“stable.” On June 23, 2011, December 19, 2011, and February 6, 2012, Fitch affirmed its A rating of Unum Group and its domestic
subsidiaries and affirmed the senior debt rating at BBB. Fitch’s rating outlook for Unum Group is “stable.” On June 27, 2011, S&P affirmed the
A- financial strength rating and “stable” outlook of Unum Group’s U.K. subsidiary, Unum Limited. On August 4, 2011, Moody’s affirmed the
Baa3 credit rating of Unum Group and the A3 financial strength rating of its domestic subsidiaries and revised the outlook for the Company
and its subsidiaries to “positive.” On August 15, 2011, S&P affirmed the BBB- credit rating of Unum Group and the A- financial strength rating
of its domestic subsidiaries and raised the outlook for the Company and its domestic subsidiaries to “positive.”
There have been no other changes in any of the rating agencies’ outlook statements or ratings during 2011 or during 2012 prior to the
date of this filing.
Agency ratings are not directed toward the holders of our securities and are not recommendations to buy, sell, or hold our securities.
Each rating is subject to revision or withdrawal at any time by the assigning rating organization, and each rating should be regarded as an
independent assessment, not conditional on any other rating. Given the dynamic nature of the ratings process, changes by these or other
rating agencies may or may not occur in the near-term. Based on our ongoing dialogue with the rating agencies concerning our improved
insurance risk profile, our financial flexibility, our operating performance, and the quality of our investment portfolio, we do not expect any
negative actions from any of the four rating agencies related to either Unum Group’s current issuer credit ratings or the financial strength
ratings of its insurance subsidiaries. However, in the event that we are unable to meet the rating agency specific guideline values to
maintain our current ratings, including but not limited to maintenance of our capital management metrics at the threshold values stated
and maintenance of our financial flexibility and operational consistency, we could be placed on a negative credit watch, with a potential for
a downgrade to both our issuer credit ratings and our financial strength ratings.
See “Ratings” contained in Item 1 and “Risk Factors” contained in Item 1A of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2011 for further discussion.