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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
68 UNUM 2012 ANNUAL REPORT
The following two tables show the length of time our investment-grade and below-investment-grade fixed maturity securities had
been in a gross unrealized loss position as of December 31, 2012 and at the end of the prior four quarters. The relationships of the current
fair value to amortized cost are not necessarily indicative of the fair value to amortized cost relationships for the securities throughout
the entire time that the securities have been in an unrealized loss position nor are they necessarily indicative of the relationships after
December 31, 2012. We held no securities at December 31, 2012 with a gross unrealized loss of $10.0 million or greater.
Unrealized Loss on Investment-Grade Fixed Maturity Securities
Length of Time in Unrealized Loss Position
2012 2011
(in millions of dollars) December 31 September 30 June 30 March 31 December 31
Fair Value < 100% >= 70% of Amortized Cost
<= 90 days $ 3.9 $ 0.7 $11.2 $15.6 $ 12.8
> 90 <= 180 days 0.4 0.4 4.1 7.1 34.3
> 180 <= 270 days 0.4 0.9 0.7 9.6 8.0
> 270 days <= 1 year 0.3 — 7.8 2.2 —
> 1 year <= 2 years 0.2 9.3 31.9 19.3 33.7
> 2 years <= 3 years 5.9 8.9 0.2 0.2 1.1
> 3 years 12.3 17.8 28.8 34.0 40.9
Sub-total 23.4 38.0 84.7 88.0 130.8
Fair Value < 70% >= 40% of Amortized Cost
> 3 years — — — — 9.5
Sub-total — — — — 9.5
Total $23.4 $38.0 $84.7 $88.0 $140.3
Unrealized Loss on Below-Investment-Grade Fixed Maturity Securities
Length of Time in Unrealized Loss Position
2012 2011
(in millions of dollars) December 31 September 30 June 30 March 31 December 31
Fair Value < 100% >= 70% of Amortized Cost
<= 90 days $ 0.3 $ 4.1 $ 7.6 $ 4.8 $ 3.3
> 90 <= 180 days 1.4 3.9 6.2 9.5 11.9
> 180 <= 270 days 2.6 5.4 4.4 7.9 8.5
> 270 days <= 1 year 2.5 3.9 3.0 6.5 0.7
> 1 year <= 2 years 6.8 4.5 17.8 15.7 13.0
> 2 years <= 3 years 6.2 9.4 8.2 — —
> 3 years 12.5 20.7 35.6 24.6 37.3
Sub-total 32.3 51.9 82.8 69.0 74.7
Fair Value < 70% >= 40% of Amortized Cost
> 1 year <= 2 years — — — — 5.0
> 3 years 0.3 1.1 0.3 0.4 2.2
Sub-total 0.3 1.1 0.3 0.4 7.2
Total $32.6 $53.0 $83.1 $69.4 $81.9