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UNUM 2012 ANNUAL REPORT 115
The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for
possible calls or prepayments.
December 31, 2012
Total
Amortized Unrealized Gain Position Unrealized Loss Position
(in millions of dollars) Cost Gross Gain Fair Value Gross Loss Fair Value
1 year or less $ 956.4 $ 21.2 $ 934.1 $ 0.5 $ 43.0
Over 1 year through 5 years 5,922.8 628.1 6,449.8 5.0 96.1
Over 5 years through 10 years 9,752.3 1,606.4 10,997.0 7.6 354.1
Over 10 years 19,192.1 4,732.7 23,200.2 42.4 682.2
35,823.6 6,988.4 41,581.1 55.5 1,175.4
Mortgage/Asset-Backed Securities 1,927.9 289.1 2,208.3 0.5 8.2
Total Fixed Maturity Securities $37,751.5 $ 7,277.5 $43,789.4 $ 56.0 $1,183.6
December 31, 2011
Total
Amortized Unrealized Gain Position Unrealized Loss Position
(in millions of dollars) Cost Gross Gain Fair Value Gross Loss Fair Value
1 year or less $ 715.1 $ 16.0 $ 701.4 $ 0.1 $ 29.6
Over 1 year through 5 years 5,161.5 449.8 4,949.0 20.7 641.6
Over 5 years through 10 years 9,630.5 1,266.3 9,903.8 52.8 940.2
Over 10 years 18,499.0 3,992.0 21,082.2 143.1 1,265.7
34,006.1 5,724.1 36,636.4 216.7 2,877.1
Mortgage/Asset-Backed Securities 2,634.6 344.1 2,859.4 5.5 113.8
Total Fixed Maturity Securities $36,640.7 $ 6,068.2 $39,495.8 $ 222.2 $2,990.9
At December 31, 2012, the fair value of investment-grade fixed maturity securities was $41,813.7 million, with a gross unrealized gain
of $7,076.2 million and a gross unrealized loss of $23.4 million. The gross unrealized loss on investment-grade fixed maturity securities was
41.8 percent of the total gross unrealized loss on fixed maturity securities. Unrealized losses on investment-grade fixed maturity securities
principally relate to changes in interest rates or changes in market or sector credit spreads which occurred subsequent to the acquisition of
the securities.
At December 31, 2012, the fair value of below-investment-grade fixed maturity securities was $3,159.3 million, with a gross unrealized
gain of $201.3 million and a gross unrealized loss of $32.6 million. The gross unrealized loss on below-investment-grade fixed maturity
securities was 58.2 percent of the total gross unrealized loss on fixed maturity securities. Generally, below-investment-grade fixed maturity
securities are more likely to develop credit concerns than investment-grade securities. At December 31, 2012, the unrealized losses in our
below-investment-grade fixed maturity securities were generally due to credit spreads in certain industries or sectors and, to a lesser
extent, credit concerns related to specific securities. For each specific security in an unrealized loss position, we believe that there are
positive factors which mitigate credit concerns and that the securities for which we have not recorded an other-than-temporary impairment
will recover in value.
As of December 31, 2012, we held 45 individual investment-grade fixed maturity securities and 29 individual below-investment-grade
fixed maturity securities that were in an unrealized loss position, of which 16 investment-grade fixed maturity securities and 18 below-
investment-grade fixed maturity securities had been in an unrealized loss position continuously for over one year.