UNUM GROUP – 10-K – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The discussion and analysis presented in this section should be read in
conjunction with the "Cautionary Statement Regarding Forward-Looking Statements"
included below the Table of Contents, "Risk Factors" included herein Item 1A,
and the Consolidated Financial Statements and notes thereto included in Item 8.

Executive Summary

2021 Operating Performance and Capital Management

For 2021, we reported net income of $824.2 million, or $4.02 per diluted common
share, compared to net income of $793.0 million, or $3.89 per diluted common
share, in 2020.

Included in our results for 2021 are:

•A net investment gain, excluding the net realized investment gain related to
the second phase of the Closed Block individual disability reinsurance
transaction, of $9.1 million before tax and $7.2 million after tax, or $0.03 per
diluted common share;
•The impact from the second phase of the Closed Block individual disability
reinsurance transaction, which resulted in a net loss of $71.7 million before
tax and $56.7 million after tax, or $0.27 per diluted common share;
•Amortization of the cost of reinsurance of $79.1 million before tax and $62.3
million after tax, or $0.31 per diluted common share;
•A net reserve decrease related to assumption updates of $181.4 million before
tax and $143.3 million after tax, or $0.70 per diluted common share;
•An impairment loss on internal-use software of $12.1 million before tax and
$9.6 million after tax, or $0.05 per diluted common share;
•Cost related to the early retirement of debt of $67.3 million before tax and
$53.2 million after tax, or $0.26 per diluted common share;
•An impairment loss on the right-of-use (ROU) asset relating to one of our
operating leases of $13.9 million before tax and $11.0 million after tax, or
$0.05 per diluted common share; and,
•Tax expense related to a U.K. tax rate increase of $24.2 million, or $0.12 per
diluted common share.

Included in our 2020 results are:

•A net investment loss, excluding the net realized investment gain related to
the first phase of the Closed Block individual disability reinsurance
transaction, of $103.2 million before tax and $82.3 million after tax, or $0.40
per diluted common share;
•The impact from the first phase of the Closed Block individual disability
reinsurance transaction, which resulted in a net loss of $3.2 million before tax
and a net gain of $34.0 million after tax, or $0.17 per diluted common share;
•Amortization of the cost of reinsurance of $2.6 million before tax and $2.0
million after tax, or $0.01 per diluted common share;
•A reserve increase related to assumption updates of $169.0 million before tax
and $133.5 million after tax, or $0.66 per diluted common share;
•Costs related to an organizational design update in the amount of $23.3 million
before tax and $18.6 million after tax, or $0.09 per diluted common share; and,
•An impairment loss on the ROU asset related to one of our operating leases of
$12.7 million before tax and $10.0 million after tax, or $0.05 million per
diluted common share.

Adjusting for these items, after-tax adjusted operating income for 2021 was
$890.7 million, or $4.35 per diluted common share compared to $1,005.4 million,
or $4.93 per diluted common share for 2020. See "Reconciliation of Non-GAAP and
Other Financial Measures" contained herein in this Item 7 for a reconciliation
of these items.

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Our Unum US segment reported a decrease in income before income tax and net
investment gains and losses of 17.6 percent in 2021 compared to 2020, which
includes a reserve decrease related to an assumption update in our group
disability product line of $215.0 million. Excluding this item, our Unum US
segment reported a decrease in adjusted operating income of 43.7 percent in 2021
compared to 2020, due to unfavorable benefits experience, particularly in the
group disability and life product lines. The benefit ratio, excluding the
previously discussed reserve decrease, for our Unum US segment for 2021 was 74.9
percent, compared to 68.8 percent in 2020. Unum US sales decreased 5.8 percent
in 2021 compared to 2020. Overall persistency was generally consistent relative
to the prior year period. See "Reserve Assumption Updates" contained herein for
further discussion.

Our Unum International segment reported an increase in adjusted operating
income, as measured in U.S. dollars, of 38.0 percent in 2021 compared to 2020.
As measured in local currency, our Unum UK line of business reported an increase
in adjusted operating income of 33.3 percent compared to 2020 due primarily to
higher net investment income and lower operating expenses, partially offset by
unfavorable benefits experience. The benefit ratio for our Unum UK line of
business was 79.6 percent in 2021 compared to 78.9 percent in 2020. Unum
International sales, as measured in U.S. dollars, increased 16.9 percent in 2021
compared to 2020. Unum UK sales, as measured in local currency, increased 7.6
percent in 2021 compared to 2020. Overall persistency was higher relative to the
prior year period.

Our Colonial Life segment reported a slight decrease in adjusted operating
income of 1.8 percent in 2021 compared to 2020 due primarily to lower premium
income and unfavorable benefits experience, mostly offset by higher net
investment income and lower operating expenses. The 2021 benefit ratio for
Colonial Life was 53.9 percent, compared to 52.9 percent in 2020. Colonial Life
sales increased 16.1 percent in 2021 compared to 2020. Overall persistency was
higher relative to the prior year period.

Our Closed Block segment reported income before income tax and net investment
gains and losses of $142.7 million in 2021, which includes reserve increases
related to the assumption updates, the impact related to the second phase of the
Closed Block individual disability reinsurance transaction, and the amortization
of the cost of reinsurance, compared to a loss of $1,235.7 million in 2020,
which includes reserve increases related to the assumption updates, the impact
related to the first phase of the Closed Block individual disability reinsurance
transaction, and the amortization of the cost of reinsurance. Excluding these
items, our Closed Block segment reported adjusted operating income of $394.7
million in 2021 compared to $241.4 million in 2020. The long-term care interest
adjusted loss ratio for 2021, excluding the reserve assumption updates, was less
favorable compared to 2020 but continues to be lower than our long-term
expectations. The individual disability interest adjusted loss ratio, excluding
the reserve assumption update in 2021 and the reserve recognition impacts from
both phases of the Closed Block individual disability reinsurance transaction,
was favorable in 2021 compared to 2020. See "Reserve Assumption Updates" and
"Closed Block Individual Disability Reinsurance Transaction" contained herein
for further discussion.

Our net investment income yields continue to be pressured by the low interest
rate environment as we maintain consistent credit quality in our invested asset
portfolio. The net unrealized gain on our fixed maturity securities was $5.9
billion at December 31, 2021, compared to $7.6 billion at December 31, 2020,
with the decrease due primarily to an increase in U.S. Treasury rates. The
earned book yield on our investment portfolio increased to 4.85 percent for 2021
compared to a yield of 4.75 percent for 2020 driven primarily by increases in
the net asset values (NAV) of our private equity partnerships in 2021.

We believe our capital and financial positions are strong. At December 31, 2021,
the RBC ratio for our traditional U.S. insurance subsidiaries, calculated on a
weighted average basis using the NAIC Company Action Level formula, was
approximately 395 percent, which is in line with our expectations. We
repurchased 1.9 million shares of Unum Group common stock under our share
repurchase program, at a cost of approximately $50 million during 2021. Our
weighted average common shares outstanding, assuming dilution, equaled 204.8
million for 2021 compared to 203.8 million for 2020. As of December 31, 2021,
Unum Group and our intermediate holding companies had available holding company
liquidity of $1,515 million that was held primarily in bank deposits, commercial
paper, money market funds, corporate bonds, and asset-backed securities.

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Closed Block Individual Disability Reinsurance Transaction

In December 2020, we completed the first phase of a reinsurance transaction,
pursuant to which Provident Life and Accident Insurance Company, The Paul Revere
Life Insurance Company, and Unum Life Insurance Company of America, wholly-owned
domestic insurance subsidiaries of Unum Group, and collectively referred to as
"the ceding companies", each entered into separate reinsurance agreements with
Commonwealth Annuity and Life Insurance Company (Commonwealth), to reinsure on a
coinsurance basis effective as of July 1, 2020, approximately 75 percent of the
Closed Block individual disability business, primarily direct business written
by the ceding companies. In March 2021, we completed the second phase of the
reinsurance transaction, pursuant to which the ceding companies and Commonwealth
amended and restated their respective reinsurance agreements to reinsure on a
coinsurance and modified coinsurance basis effective as of January 1, 2021, a
substantial portion of the remaining Closed Block individual disability business
that was not ceded in December 2020, primarily business previously assumed by
the ceding companies. Commonwealth established and will maintain collateralized
trust accounts for the benefit of the ceding companies to secure its obligations
under the reinsurance agreements.

In December 2020, Provident Life and Casualty Insurance Company (PLC), also a
wholly-owned domestic insurance subsidiary of Unum Group, entered into an
agreement with Commonwealth whereby PLC will provide a 12-year volatility cover
to Commonwealth for the active life cohort (ALR cohort). As part of this
agreement, PLC received a payment from Commonwealth of approximately $62
million. On March 31, 2021, PLC and Commonwealth amended and restated this
agreement to incorporate the ALR cohort related to the additional business that
was reinsured between the ceding companies and Commonwealth as part of the
second phase of the transaction. As part of the amended and restated volatility
cover, PLC received a payment from Commonwealth of approximately $18 million. At
the end of the 12-year coverage period, Commonwealth will retain the remaining
incidence and claims risk on the ALR cohort of the ceded business.

In connection with the first phase of the reinsurance transaction which occurred
in December 2020, the ceding companies paid a total ceding commission to
Commonwealth of $437.7 million. In connection with the second phase of the
reinsurance transaction which occurred in March 2021, Commonwealth paid a ceding
commission to the ceding companies of $18.2 million. The ceding companies
transferred assets, which consisted primarily of cash and fixed maturity
securities, of $6,669.8 million and $767.0 million for the first phase in
December 2020 and the second phase in March 2021, respectively. In addition, we
recognized the following items for the first phase in December 2020 and the
second phase in March 2021, respectively:

•Net realized investment gains totaling $1,302.3 million and $67.6 million
before tax, or $1,028.8 million and $53.4 million after tax, related to the
transfer of investments.
•Increase in benefits and change in reserves for future benefits of $1,284.5
million and $133.1 million, or $1,014.7 million and $105.1 million after tax,
resulting from the realization of previously unrealized investment gains and
losses recorded in accumulated other comprehensive income.
•Transaction costs totaling $21.0 million and $6.2 million, or $16.6 million and
$5.0 million after tax.
•Reinsurance recoverable of $6,141.5 million and $990.0 million related to the
policies on claim status (DLR cohort).
•Cost of reinsurance, or prepaid reinsurance premium, of $815.7 million and
$43.1 million related to the DLR cohort. The related amortization of the cost of
reinsurance was $2.6 million and $79.1 million, or $2.0 million and $62.3
million after tax.
•Deposit asset of $88.2 million and $5.0 million related to the ALR cohort.
•Tax benefit of $36.5 million, in connection with the first phase.
•Payable of $307.2 million related to the portfolio of invested assets
associated with the business ceded on a modified coinsurance basis, in
connection with the second phase.

We released approximately $200 million of capital during the first quarter of
2021 in addition to the $400 million that was released in December 2020. See
"Reinsurance" contained herein in Item 1; "Segment Results," and "Liquidity and
Capital Resources - Cash Available from Subsidiaries" contained herein in Item
7, and Notes 12 and 16 of the "Notes to Consolidated Financial Statements"
contained herein in Item 8 for further discussion on the impacts related to this
reinsurance transaction.

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Reserve Assumption Updates

During the third quarter of 2021, we completed our annual review of policy and
claim reserve adequacy, which incorporated our most recent experience and
included a review of all material assumptions. Based on our analysis, during the
third quarter of 2021, we updated our reserve assumptions to reflect our current
estimate of future benefit obligations and determined that our claim reserves
should be reduced by $215.0 million before tax, or $169.9 million after tax, in
our Unum US group long-term disability product line due primarily to sustained
improvement in claim recovery trends since our last assumption update. We also
increased our claim reserves for our Closed Block long-term care and individual
disability product lines by $2.1 million and $6.4 million before tax, or $1.7
million and $5.1 million after tax, respectively. We determined that our policy
reserves should be increased by $25.1 million before tax, or $19.8 million after
tax, in our Closed Block group pension product line to reflect updated discount
rate assumptions.

During the fourth quarter of 2020, we completed our annual review of policy and
claim reserve adequacy, which incorporated our most recent experience and
included a review of all material assumptions. Based on our analysis, during the
fourth quarter of 2020, we updated our reserve assumptions to reflect our
current estimate of future benefit obligations and determined that our gross
policy and claim reserves should be increased by $151.5 million before tax, or
$119.7 million after tax, for our Closed Block long-term care product line due
primarily to an update to our interest rate assumptions, partially offset by
favorable premium rate increase approvals and inventory updates. Also during the
fourth quarter of 2020, we updated our reserve assumptions and determined that
our policy and claim reserves should be increased by $17.5 million before tax,
or $13.8 million after tax, in our Closed Block group pension product line to
reflect updated discount rate assumptions.

For further information related to the reserve assumption updates, see "Trends
in Key Assumptions" contained herein in the "Critical Accounting Estimates" of
this Item 7 and Note 6 of the "Notes to Consolidated Financial Statements"
contained in Item 8.

Impairment Loss on Internal-Use Software

During the third quarter of 2021, we recognized an impairment loss of $12.1
million before tax, or $9.6 million after tax, for previously capitalized
internal-use software that we no longer plan to utilize. We determined that this
internal-use software would no longer be developed in order to focus our efforts
on the development of software that better supports our long-term strategic
goals. For further information related to the impairment loss on internal-use
software, see Note 13 of the "Notes to Consolidated Financial Statements"
contained in Item 8.

Impairment Losses on ROU Asset

During the second quarters of 2021 and 2020, we recognized impairment losses of
$13.9 million and $12.7 million before tax, respectively, or $11.0 million and
$10.0 million after tax, on the ROU asset related to one of our operating leases
for office space that we do not plan to continue using to support our general
operations. The impairment losses were recorded as a result of a decrease in the
fair value of the ROU asset compared to its carrying value. For further
information related to the impairment losses on the ROU asset, see Note 15 of
the "Notes to Consolidated Financial Statements" contained in Item 8.

Costs Related to Organizational Design Update

During the third quarter of 2020, we realigned certain parts of our
organizational structure by shifting resources to accelerate growth, fund
priority investments, and simplify and improve our business practices. In
connection with this update, we incurred charges of $23.3 million before tax, or
$18.6 million after tax, which primarily consisted of employee severance and
benefit costs as well as costs related to lease terminations and the disposal of
certain fixed assets. This update did not result in the exit or disposal of any
of our lines of business.

U.K. Tax Law Change

On June 10, 2021, the Finance Act 2021 was enacted, resulting in a U.K. tax rate
increase from 19 percent to 25 percent, effective April 1, 2023, which resulted
in $24.2 million of additional tax expense in operating earnings for the
revaluation of our deferred tax assets and liabilities in 2021. On July 22,
2020, the Finance Act 2020 was enacted, resulting in a U.K. tax rate increase
from 17 percent to 19 percent, retroactively effective April 1, 2020, which
resulted in $9.3 million of additional tax expense in operating earnings for the
revaluation of our deferred tax assets and liabilities in 2020.

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U.K. Referendum

On January 31, 2020, an official bill was passed formalizing the withdrawal of
the U.K. from the European Union (EU). A deal was reached on December 24, 2020
on the future trading relationship with the EU, which focused primarily on the
trading of goods rather than the U.K.'s service sector. A memorandum of
understanding on regulatory cooperation was signed by the U.K. and EU in March
2021, but no agreement on the equivalence of the regulatory regimes has yet been
reached. The U.K. government is now reviewing the regulatory framework of
financial services companies which may result in changes to U.K. regulatory
capital or U.K. tax regulations. We do not expect that the underlying operations
of our U.K. business, nor the Polish business which is in the EU, will be
significantly impacted by the withdrawal, but it is possible that we may
experience some short-term volatility in financial markets, which could impact
the fair value of investments, our solvency ratios, or the British pound
sterling to dollar exchange rate. See "Regulation" contained herein in Item 1,
"Risk Factors" contained herein in Item 1A, and "Unum International Segment"
contained herein in this Item 7.

Coronavirus Disease 2019 (COVID-19)

On March 11, 2020, the World Health Organization identified the spread of
COVID-19 as a pandemic. COVID-19 continues to cause significant disruption to
the global economy and has unfavorably impacted our company as well as the
overall insurance industry. Due to the volatile and unprecedented nature of
these events, we still cannot fully estimate the ultimate impact of the COVID-19
pandemic. We continue to closely monitor pandemic trends that have and may
continue to have adverse impacts on our business.

Results of Operations

We continue to see some pressure on our overall sales resulting from the impacts
of COVID-19 including increased competition in the large-case market while we
maintain risk and pricing discipline. Though we experienced improvements in
sales activity during 2021 in certain of our product lines, if we continue to
experience disruptions, our premium income in our principal operating segments
may continue to be impacted. In addition, in certain of our product lines, we
continued to see pressure in the number of lives insured with our customers as
they navigated the current environment. With respect to premium collectability,
as our outlook regarding the economic environment and the financial condition of
our customers improved, we began to reduce the allowance for expected credit
losses on our premiums receivable balances that we established during 2020.
However, circumstances may deteriorate quickly which could result in the decline
of persistency levels and sales growth in the near term, and potentially longer
if the impacts of the pandemic persist, which may materially impact our results
of operations.

We have experienced higher mortality in our life product lines and higher claim
incidence in certain of our disability product lines. In the second half of
2021, we also experienced elevated mortality among working-age individuals who
are covered by our Unum US group life and voluntary benefits products lines and
typically have higher benefit amounts. With respect to our long-term care
product line, we have experienced higher claimant mortality. We continue to
monitor the benefits experience of all our products for trends potentially
correlated with COVID-19. For further discussion regarding the benefits
experience for each of our operating business segments, see "Segment Results"
herein in this Item 7. See Notes 1 of the "Notes to Consolidated Financial
Statements" contained herein in Item 8 for further information on our allowances
for credit losses.

Financial Condition

Investments

We continue to monitor capital market activity on a regular basis and to the
extent that there is increased volatility and ratings downgrades related to the
issuers of our fixed maturity securities, we could experience further credit
losses, an increase in defaults, and the need for additional capital in our
insurance subsidiaries. However, we remain confident in the overall strength and
credit quality of our investment portfolio.

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Other

As a result of lower profitability in the short-term in our Unum US group life
and accidental death and dismemberment product line, largely driven by the
higher level of mortality experienced, we deferred less acquisition costs in
2021 which also lowered the profitability of that product line. If we continue
to experience unfavorable trends in the above areas of focus, including a
decline in persistency or a decline in profitability of the underlying business,
our ability to defer acquisition costs may continue to be affected and we may
also experience certain additional, correlated impacts such as an increase in
the amortization of deferred acquisition costs, the write-off or impairment of
certain assets such as premiums receivable, reinsurance recoverable, property
and equipment, ROU assets, value of business acquired and goodwill. Furthermore,
if the profitability of our businesses declines, we may also be required to
establish a valuation allowance regarding the realization of our deferred tax
assets.

Liquidity and Capital Resources

We have strengthened our liquidity position through actions such as maintaining
a high level of short-term investments and a high level of collateral posted
with the regional Federal Home Loan Banks (FHLB) from certain of our U.S.
insurance subsidiaries. In November 2021, we entered into a 20-year facility
agreement with a Delaware trust that gives us the right to issue and to sell to
the trust, up to $400.0 million of 4.046% senior notes in exchange for a
corresponding amount of U.S. Treasury securities held by the trust. We believe
we have the appropriate liquidity and access to capital to avoid significant
disruption to our operations. We have not yet experienced a significant impact
to our liquidity as a result of the collection of premiums and submitted claims
activity; however, we continually monitor the developments of these items. See
"Liquidity and Capital Resources" contained herein in this Item 7, and Note 8 of
the "Notes to Consolidated Financial Statements" contained herein in Item 8 for
further information on the facility agreement with a Delaware trust.

As of December 31, 2021, we have borrowed $160.9 million of funds through our
memberships with the regional FHLBs. Those funds are used for the purpose of
investing in either short-term investments or fixed maturity securities, and we
have additional borrowing capacity of approximately $992 million that can be
utilized for liquidity if the need arises. Additionally, we have access to an
unsecured revolving credit facility that allows us to borrow up to a total of
$500.0 million. There are currently no outstanding borrowings on this facility,
but we remain in compliance with required covenants should we choose to borrow
in the future. We have no significant upcoming debt maturities until 2024. We
continue to meet the financial covenants contained in our current debt
agreements and credit facilities, and we expect that we will continue to meet
those covenants in subsequent periods.

To the extent that we begin to experience a significant impact to our liquidity,
we would likely suspend planned share repurchases, sell highly liquid invested
assets and/or borrow funds on our credit facility to meet operational cash flow
requirements.

Business Operations

We have not experienced a significant disruption to our operational processes as
a result of COVID-19. We have been able to successfully implement our business
continuation plans to accommodate remote work arrangements for the safety of our
employees and customers. We also have not experienced significant disruption to
our financial reporting systems or internal control over financial reporting and
disclosure controls and procedures as a result of COVID-19.

For further information, see "Risk Factors" contained herein in Item 1A.

Consolidated Company Outlook for 2022

We believe our strategy of providing financial protection products at the
workplace puts us in a position of strength. The products and services we
provide have never been more important to employers, employees and their
families, especially given the COVID-19 pandemic. We continue to fulfill our
corporate purpose of helping the working world thrive throughout life's moments
by providing excellent service to people at their time of need. Our strategy
remains centered on growing our core businesses, through investing and
transforming our operations and technology to anticipate and respond to the
changing needs of our customers, expanding into new adjacent markets through
meaningful partnerships and effective deployment of our capital across our
portfolio.

Our near-term results will be influenced by COVID trends, specifically the
mortality rate in the working-age individuals and the rate and severity of
infections. As the pandemic impacts lessen, we anticipate seeing a recovery in
our core business earnings

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from the underlying strength of our business. We expect positive operating
trends in our core businesses during 2022, with solid premium growth and
improving claim experience as impacts from COVID-19 lessen.

The low interest rate environment continues to place pressure on our profit
margins by impacting net investment income yields as well as potentially
discount rates on our insurance liabilities. We also may continue to experience
further volatility in miscellaneous investment income primarily related to
changes in partnership net asset values and bond call activity.

As part of our discipline in pricing and reserving, we continuously monitor
emerging claim trends and interest rates. We will continue to take appropriate
pricing actions on new business and renewals that are reflective of the current
environment.

Our business is well-diversified by geography, industry exposures and case size,
and we continue to analyze and employ strategies that we believe will help us
navigate the current environment. These strategies allow us to maintain
financial flexibility to support the needs of our businesses, while also
returning capital to our shareholders. We have strong core businesses that have
a track record of generating significant capital, and we will continue to invest
in our operations and expand into adjacent markets where we can best leverage
our expertise and capabilities to capture market growth opportunities as those
opportunities emerge. We believe that consistent operating results, combined
with the implementation of strategic initiatives and the effective deployment of
capital, will allow us to meet our financial objectives.

Further discussion is included in "Reconciliation of Non-GAAP Financial
Measures," "Consolidated Operating Results," "Segment Results," "Investments,"
and "Liquidity and Capital Resources" contained herein in this Item 7 and in the
"Notes to Consolidated Financial Statements" contained herein in Item 8.

Reconciliation of Non-GAAP and Other Financial Measures

We analyze our performance using non-GAAP financial measures. A non-GAAP
financial measure is a numerical measure of a company's performance, financial
position, or cash flows that excludes or includes amounts that are not normally
excluded or included in the most directly comparable measure calculated and
presented in accordance with GAAP. The non-GAAP financial measure of "after-tax
adjusted operating income" differs from net income as presented in our
consolidated operating results and income statements prepared in accordance with
GAAP due to the exclusion of investment gains or losses and the amortization of
the cost of reinsurance as well as certain other items as specified in the
reconciliations below. Investment gains or losses primarily include realized
investment gains or losses, expected investment credit losses, and gains or
losses on derivatives. We believe after-tax adjusted operating income is a
better performance measure and better indicator of the profitability and
underlying trends in our business.

Investment gains or losses depend on market conditions and do not necessarily
relate to decisions regarding the underlying business of our segments. Our
investment focus is on investment income to support our insurance liabilities as
opposed to the generation of investment gains or losses. Although we may
experience investment gains or losses which will affect future earnings
levels, a long-term focus is necessary to maintain profitability over the life
of the business since our underlying business is long-term in nature, and we
need to earn the interest rates assumed in calculating our liabilities.

As previously discussed, we have exited a substantial portion of our Closed
Block individual disability product line through the two phases of the
reinsurance transaction that were executed in December 2020 and March 2021. As a
result, we exclude the amortization of the cost of reinsurance that was
recognized upon the exit of the business related to the DLR cohort of policies.
We believe that the exclusion of the amortization of the cost of reinsurance
provides a better view of our results from our ongoing businesses.

We may at other times exclude certain other items from our discussion of
financial ratios and metrics in order to enhance the understanding and
comparability of our operational performance and the underlying fundamentals,
but this exclusion is not an indication that similar items may not recur and
does not replace net income or net loss as a measure of our overall
profitability.

See "Executive Summary" contained herein in Item 7 and Notes 3, 6, 7, 8, 12, 13,
and 15 of the "Notes to Consolidated Financial Statements" contained herein in
Item 8 for further discussion regarding the items specified in the
reconciliations below.

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A reconciliation of GAAP financial measures to our non-GAAP financial measures
is as follows:

                                                                                      Year Ended December 31
                                                 2021                                          2020                                          2019
                                  (in millions)           per share *           (in millions)           per share *           (in millions)           per share *
Net Income                      $        824.2          $       4.02          $        793.0          $       3.89          $      1,100.3          $       5.24
Excluding:
Net Investment Gains and Losses
Net Realized Investment Gain
Related to Reinsurance
Transaction (net of tax expense
of $14.2; $273.5; $-)                     53.4                  0.26                 1,028.8                  5.05                       -                     -
Net Investment Gain (Loss),
Other (net of tax expense
(benefit) of $1.9; $(20.9);
$(4.5))                                    7.2                  0.03                   (82.3)                (0.40)                  (18.7)                (0.09)
Total Net Investment Gain
(Loss)                                    60.6                  0.29                   946.5                  4.65                   (18.7)                (0.09)
Items Related to Closed Block
Individual Disability
Reinsurance Transaction
Change in Benefit Reserves and
Transaction Costs (net of tax
benefit of $29.2; $274.2; $-)           (110.1)                (0.53)               (1,031.3)                (5.06)                      -              

-

Amortization of the Cost of
Reinsurance (net of tax benefit
of $16.8; $0.6; $-)                      (62.3)                (0.31)                   (2.0)                (0.01)                      -              

-

Net Tax Benefits of Reinsurance
Transaction                                  -                     -                    36.5                  0.18                       -                     -
Total Items Related to Closed
Block Individual Disability
Reinsurance Transaction                 (172.4)                (0.84)                 (996.8)                (4.89)                      -                     -
Net Reserve Change Related to
Reserve Assumption Updates (net
of tax expense (benefit) of
$38.1; $(35.5); $-)                      143.3                  0.70                  (133.5)                (0.66)                      -              

-

Impairment Loss on Internal-Use
Software (net of tax benefit of
$2.5; $-; $-)                             (9.6)                (0.05)                      -                     -                       -              

-

Cost Related to Early
Retirement of Debt (net of tax
benefit of $14.1; $-; $5.7)              (53.2)                (0.26)                      -                     -                   (21.6)                (0.11)
Impairment Loss on ROU Asset
(net of tax benefit of $2.9;
$2.7: $-)                                (11.0)                (0.05)                  (10.0)                (0.05)                      -                     -
Impact of U.K. Tax Rate
Increase                                 (24.2)                (0.12)                      -                     -                       -                     -

Costs Related to Organizational
Design Update (net of tax
benefit of $-; $4.7; $-)                     -                     -                   (18.6)                (0.09)                      -                     -
After-tax Adjusted Operating
Income                          $        890.7          $       4.35          $      1,005.4          $       4.93          $      1,140.6          $       5.44

* Assuming Dilution


                                       44

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We measure and analyze our segment performance on the basis of "adjusted
operating revenue" and "adjusted operating income" or "adjusted operating loss",
which differ from total revenue and income before income tax as presented in our
consolidated statements of income due to the exclusion of investment gains and
losses and the amortization of the cost of reinsurance as well as certain other
items as specified in the reconciliations below. These performance measures are
in accordance with GAAP guidance for segment reporting, but they should not be
viewed as a substitute for total revenue, income before income tax, or net
income.

A reconciliation of total revenue to "adjusted operating revenue" and income
before income tax to "adjusted operating income" is as follows:

                                                                         Year Ended December 31
                                                              2021                2020                2019
                                                                        (in millions of dollars)
Total Revenue                                             $ 12,013.8          $ 13,162.1          $ 11,998.9
Excluding:
Net Investment Gain (Loss)                                      76.7             1,199.1               (23.2)
Adjusted Operating Revenue                                $ 11,937.1        

$ 11,963.0 $ 12,022.1

Income Before Income Tax                                  $  1,063.0          $    964.0          $  1,382.1
Excluding:
Net Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance
Transaction                                                     67.6             1,302.3                   -
Net Investment Gain (Loss), Other                                9.1              (103.2)              (23.2)
Total Net Investment Gain (Loss)                                76.7             1,199.1               (23.2)

Items Related to Closed Block Individual Disability
Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs

              (139.3)           (1,305.5)                  -
Amortization of the Cost of Reinsurance                        (79.1)               (2.6)                  -

Total Items Related to Closed Block Individual Disability
Reinsurance Transaction

                                       (218.4)           (1,308.1)                  -

Net Reserve Change Related to Reserve Assumption Updates 181.4

       (169.0)                  -
Impairment Loss on Internal-Use Software                       (12.1)                  -                   -
Cost Related to Early Retirement of Debt                       (67.3)                  -               (27.3)
Impairment Loss on ROU Asset                                   (13.9)              (12.7)                  -

Costs Related to Organizational Design Update                      -               (23.3)                  -
Adjusted Operating Income                                 $  1,116.6          $  1,278.0          $  1,432.6



                                       45

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Critical Accounting Estimates

We prepare our financial statements in accordance with GAAP. The preparation of
financial statements in conformity with GAAP requires us to make estimates and
assumptions that affect amounts reported in our financial statements and
accompanying notes. Estimates and assumptions could change in the future as more
information becomes known, which could impact the amounts reported and disclosed
in our financial statements. The accounting estimates deemed to be most critical
to our financial position and results of operations are those related to
reserves for policy and contract benefits, deferred acquisition costs, valuation
of investments, pension and postretirement benefit plans, income taxes, and
contingent liabilities. For additional information, refer to our significant
accounting policies in Note 1 of the "Notes to Consolidated Financial
Statements" contained herein in Item 8.

Reserves for Policy and Contract Benefits

Reserves for policy and contract benefits are our largest liabilities and
represent claims that we estimate we will eventually pay to our policyholders.
The two primary categories of reserves are policy reserves for claims not yet
incurred and claim reserves for claims that have been incurred or are estimated
to have been incurred but not yet reported to us. Reserves for policy and
contract benefits equaled $45.3 billion each at December 31, 2021 and 2020, or
approximately 77.1 percent and 75.8 percent of our total liabilities,
respectively. Reserves ceded to reinsurers were $13.5 billion and $13.2 billion
at December 31, 2021 and 2020 and are reported as a reinsurance recoverable in
our consolidated balance sheets.

Policy Reserves

Policy reserves are established in the same period we issue a policy and equal
the difference between projected future policy benefits and future premiums,
allowing a margin for expenses and profit. These reserves relate primarily to
our non-interest sensitive products, including our individual disability and
voluntary benefits products in our Unum US segment; individual disability and
life products in our Unum International segment; voluntary benefits products in
our Colonial Life segment; and individual disability, long-term care, and other
products in our Closed Block segment. The reserves are calculated based on
assumptions that were appropriate at the date the policy was issued and are not
subsequently modified unless the policy reserves become inadequate (i.e. loss
recognition occurs).

•Persistency assumptions are based on our actual historical experience adjusted
for future expectations.
•Claim incidence and claim resolution rate assumptions related to mortality and
morbidity are based on actual experience or industry standards adjusted as
appropriate to reflect our actual experience and future expectations.
•Discount rate assumptions are based on our current and expected net investment
returns.

In establishing policy reserves, we use assumptions that reflect our best
estimate while considering the potential for adverse variances in actual future
experience, which results in a total policy reserve balance that has an embedded
reserve for adverse deviation. We do not, however, establish an explicit and
separate reserve as a provision for adverse deviation from our assumptions.

We perform loss recognition tests on our policy reserves annually, or more
frequently if appropriate, using best estimate assumptions as of the date of the
test, without a provision for adverse deviation. We group the policy reserves
for each major product line within a segment when we perform the loss
recognition tests. If the policy reserves determined using these best estimate
assumptions are higher than our existing policy reserves net of any deferred
acquisition cost balance, the existing policy reserves are increased or deferred
acquisition costs are reduced to immediately recognize the deficiency.
Thereafter, the policy reserves for the product line are calculated using the
same method we used for the loss recognition testing, referred to as the gross
premium valuation method, wherein we use our best estimate as of the gross
premium valuation (loss recognition) date rather than the initial policy issue
date to determine the expected future claims, commissions, and expenses we will
pay and the expected future gross premiums we will receive.

Because the key policy reserve assumptions for policy persistency, mortality and
morbidity, and discount rates are all locked in at policy issuance based on
assumptions appropriate at that time, policy reserve assumptions are generally
not changed due to a change in claim status from active to disabled subsequent
to policy issuance.  Depending on the funding mechanism, a full policy reserve
is held during disability reflecting continued funding of the full policy
reserve during a disability claim, or a fractional policy reserve is held
reflecting that the individual policyholder would need to recover before he or
she can again generate future claims for a separate occurrence. The policy
reserves build up and release over time based on assumptions made at the time of
policy issuance such that the reserve is eliminated as policyholders either
reach the terminal age for coverage, die, or voluntarily lapse the policy.
Policy reserves for Unum US, Unum International, and Colonial Life products are
determined using the net
                                       46
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level premium method as prescribed by GAAP. In applying this method, we use, as
applicable by product type, morbidity and mortality incidence rate assumptions,
claim resolution rate assumptions, and policy persistency assumptions, among
others, to determine our expected future claim payments and expected future
premium income. We then apply an interest, or discount, rate to determine the
present value of the expected future claims and claim expenses we will pay and
the expected future premiums we will receive, with a provision for profit
allowed.

Policy reserves for our Closed Block segment include certain older policy forms
for individual disability, individual and group long-term care, and certain
other products, all of which are no longer actively marketed. The reserves for
individual disability and individual and group long-term care are determined
using the gross premium valuation method. Key assumptions are persistency,
mortality and morbidity, claim incidence, claim resolution rates, commission
rates, and maintenance expense rates. For long-term care, premium rate increases
are also a key assumption. We apply an interest, or discount, rate to determine
the present value of the expected future claims, commissions, and expenses we
will pay as well as the expected future premiums we will receive, with no
provision for future profit. The interest rate is based on our expected net
investment returns on the investment portfolio supporting the reserves for these
blocks of business. Under the gross premium valuation method, we do not include
an embedded provision for the risk of adverse deviation from these assumptions.
Gross premium valuation assumptions do not change after the date of loss
recognition unless reserves are again determined to be deficient in the future.

Policy reserves for certain other products, excluding individual disability and
individual and group long-term care, which are no longer actively marketed and
are reported in our Closed Block segment represent $5.7 billion on a gross
basis. We have ceded $5.0 billion of reserves related to these other products,
which are primarily comprised of policy reserves, to reinsurers. The ceded
reserve balance is reported in our consolidated balance sheets as a reinsurance
recoverable. We continue to service a block of group pension products, which we
have not ceded, and the policy reserves for these products are based on expected
mortality rates and retirement rates. Expected future payments are discounted at
interest rates reflecting the anticipated investment returns for the assets
supporting the liabilities.

Claim Reserves

Claim reserves are established when a claim is incurred or is estimated to have
been incurred but not yet reported (IBNR) to us and, as prescribed by GAAP,
equals our long-term best estimate of the present value of the liability for
future claim payments and claim adjustment expenses. A claim reserve is based on
actual known facts regarding the claim, such as the benefits available under the
applicable policy, the covered benefit period, the age, and, as appropriate, the
occupation and cause of disability of the claimant, as well as assumptions
derived from our actual historical experience and expected future changes in
experience for factors such as the claim duration, discount rate, and policy
benefit offsets, including those for social security and other government-based
welfare benefits. Reserves for IBNR claims, similar to incurred claim reserves,
include our assumptions for claim duration and discount rates, but because we do
not yet know the facts regarding the specific claims, these reserves are also
established based on historical incidence rate assumptions, including claim
reporting patterns, the average cost of claims, and the expected volumes of
incurred claims. Our incurred claim reserves and IBNR claim reserves do not
include any provision for the risk of adverse deviation from our assumptions.

Claim reserves, unlike policy reserves, are subject to revision as current claim
experience and projections of future factors affecting claim experience change.
Each quarter we review our emerging experience to ensure that our claim reserves
are appropriate. If we believe, based on our actual experience and our view of
future events, that our long-term assumptions need to be modified, we adjust our
reserves accordingly with a charge or credit to our current period income.

Multiple estimation methods exist to establish claim reserve liabilities, with
each method having its own advantages and disadvantages. Available reserving
methods utilized to calculate claim reserves include the tabular reserve method,
the paid loss development method, the incurred loss development method, the
count and severity method, and the expected claim cost method. No single method
is better than the others in all situations and for all product lines. The
estimation methods we have chosen are those that we believe produce the most
reliable reserves.

We use a tabular reserve methodology on reported claims for our Unum US group
long-term disability and individual disability claims as well as for our Closed
Block individual disability and group and individual long-term care claims.
Under the tabular reserve methodology, reserves for reported claims are based on
certain characteristics of the actual reported claimants, such as age, length of
time disabled, and medical diagnosis, as well as assumptions regarding claim
duration, discount rate, and policy benefit offsets. We believe the tabular
reserve method is the most accurate to calculate long-term liabilities and
allows us to use the most available known facts about each claim. IBNR claim
reserves for our long-term products are calculated using the count and severity
method using historical patterns of the claims to be reported and the associated
claim costs. For Unum US group short-term disability products, an estimate of
the value of future payments to be made on claims already submitted, as well as
on
                                       47
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IBNR claims, is determined in aggregate using a paid loss development method
rather than on the individual claimant basis that we use for reported claims on
long-term products. The average length of time between the event triggering a
claim under a policy and the final resolution of those claims is much shorter
for these products than for our long-term liabilities and results in less
estimation variability.

Claim reserves for Unum US group life and accidental death and dismemberment
products are related primarily to death claims reported but not yet paid, IBNR
death claims, and a liability for waiver of premium benefits. The death claim
reserve is based on the actual face amount to be paid, the IBNR reserve is
calculated using the paid loss development method, and the waiver of premium
benefits reserve is calculated using the tabular reserve methodology.

Claim reserves supporting the group and individual dental and vision products
reported in our Unum US and Colonial Life segments have a short claim payout
period. As a result, the reserves, which primarily represent IBNR and a small
amount of claims pending payment, are calculated using the paid loss development
method.

Claim reserves supporting our Unum International segment are calculated using
generally the same methodology that we use for Unum US disability and group term
life reserves. Claim reserves for our Unum UK group dependent life product are
calculated using discounted cash flows, based on our assumptions for claim
duration and discount rates. The assumptions used in calculating claim reserves
for this segment are based on standard country-specific industry experience,
adjusted for our own experience.

The majority of the Colonial Life segment and the Unum US voluntary line of
business have short-term benefits, which generally have less estimation
variability than our long-term products because of the shorter claim payout
period. Claim reserving methods may vary by product depending on the nature of
the liability. Our claim reserves for the Colonial Life segment and the Unum US
voluntary line of business are predominantly determined using the incurred loss
development method based on our own experience. The incurred loss development
method uses the historical patterns of payments by loss date to predict future
claim payments for each loss date. Where the incurred loss development method
may not be appropriate, we estimate the incurred claims using an expected claim
cost per policy or other measure of exposure. The key assumptions for claim
reserves for the Colonial Life segment and the Unum US voluntary line of
business are the timing, rate, and amount of estimated future claim payments;
and the estimated expenses associated with the payment of claims.

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The following table displays policy reserves, incurred claim reserves, and IBNR
claim reserves by major product line, with the summation of the policy reserves
and claim reserves shown both gross and net of the associated reinsurance
recoverable. Incurred claim reserves represent the expected benefits payable
under each incurred claim, along with other expenses associated with the payment
of the claims. IBNR claim reserves include provisions for incurred but not
reported claims and a provision for reopened claims for our disability products.
The IBNR and reopened claim reserves for our disability products are developed
and maintained in aggregate based on historical monitoring. Impacting year over
year comparability of policy and claim reserves in the following chart are the
2021 reserve assumptions updates for our Unum US group disability, Closed Block
long-term care, Closed Block individual disability and Closed Block other
product lines as well as the second phase of the Closed Block individual
disability reinsurance transaction that we entered into in March 2021. See
"Executive Summary" contained herein in this Item 7 and Notes 6 and 12 of the
"Notes to Consolidated Financial Statements" contained herein in Item 8 for
further discussion.

(in millions of dollars)                                                                              December 31, 2021
                                                                                       Gross                                                                  Total
                                                                                      Claim Reserves                                                       Reinsurance
                                   Policy Reserves              %              Incurred              IBNR               %                Total                Ceded              Total Net
Group Disability                 $              -                 -  %       $  5,350.2          $   766.6             25.9  %       $  6,116.8          $       52.3          $  6,064.5
Group Life and Accidental Death
& Dismemberment                              56.7               0.3               715.8              281.0              4.2             1,053.5                   4.4             1,049.1
Individual Disability                       456.1               2.1             1,412.0              150.4              6.6             2,018.5                 205.7             1,812.8
Voluntary Benefits                        1,752.2               8.1                47.6               51.3              0.4             1,851.1                  23.7             1,827.4
Dental and Vision                               -                 -                 0.9               11.5              0.1                12.4                   0.1                12.3
Unum US Segment                           2,265.0              10.5             7,526.5            1,260.8             37.2            11,052.3                 286.2            10,766.1

Unum International Segment                  211.2               1.0             2,110.7              156.0              9.6             2,477.9                  94.3             2,383.6

Colonial Life Segment                     2,471.8              11.4               322.8              115.5              1.9             2,910.1                   3.2             2,906.9

Individual Disability                       148.6               0.7             9,210.0              123.6             39.4             9,482.2               8,145.4             1,336.8
Long-term Care                           10,842.2              50.2             2,300.1              271.7             10.9            13,414.0                   7.4            13,406.6
Other                                     5,652.2              26.2               153.2              113.8              1.0             5,919.2               4,950.1               969.1
Closed Block Segment                     16,643.0              77.1            11,663.3              509.1             51.3            28,815.4              13,102.9            15,712.5

Subtotal                         $       21,591.0             100.0  %       $ 21,623.3          $ 2,041.4            100.0  %         45,255.7              13,486.6            31,769.1

Adjustment Related to Unrealized
Investment Gains and Losses                                                                                                             4,659.5                 132.1             4,527.4

Consolidated                                                                                                                         $ 49,915.2          $   13,618.7          $ 36,296.5



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                                                                                                      December 31, 2020
                                                                                       Gross                                                                  Total
                                                                                      Claim Reserves                                                       Reinsurance
                                   Policy Reserves              %              Incurred              IBNR               %                Total                Ceded              Total Net
Group Disability                 $              -                 -  %       $  5,663.4          $   720.4             26.5  %       $  6,383.8          $       58.3          $  6,325.5
Group Life and Accidental Death
& Dismemberment                              58.8               0.3               715.4              261.3              4.0             1,035.5                   3.0             1,032.5
Individual Disability                       475.9               2.2             1,417.4              146.0              6.5             2,039.3                 216.3             1,823.0
Voluntary Benefits                        1,731.3               8.2                46.3               55.3              0.4             1,832.9                  25.3             1,807.6
Dental and Vision                               -                 -                 0.2               11.3                -                11.5                   0.1                11.4
Unum US Segment                           2,266.0              10.7             7,842.7            1,194.3             37.4            11,303.0                 303.0            11,000.0

Unum International Segment                  208.4               1.0             2,077.0              138.6              9.2             2,424.0                  89.9             2,334.1

Colonial Life Segment                     2,354.8              11.2               329.0              117.4              1.8             2,801.2                   4.5             2,796.7

Individual Disability                       196.3               0.9             9,641.9              144.2             40.5             9,982.4               7,810.1             2,172.3
Long-term Care                           10,402.1              49.3             2,147.4              268.5             10.0            12,818.0                  44.4            12,773.6
Other                                     5,675.0              26.9               166.1              113.1              1.1             5,954.2               4,966.3               987.9
Closed Block Segment                     16,273.4              77.1            11,955.4              525.8             51.6            28,754.6              12,820.8            15,933.8

Subtotal                         $       21,102.6             100.0  %       $ 22,204.1          $ 1,976.1            100.0  %         45,282.8              13,218.2            32,064.6

Adjustment Related to Unrealized
Investment Gains and Losses                                                                                                             6,225.6                 200.2             6,025.4

Consolidated                                                                                                                         $ 51,508.4          $   13,418.4          $ 38,090.0



Key Assumptions

The calculation of policy and claim reserves involves numerous assumptions, but
the primary assumptions used to calculate reserves are (1) the discount rate,
(2) the claim resolution rate, and (3) the claim incidence rate for policy
reserves and IBNR claim reserves. Of these assumptions, our discount rate and
claim resolution rate assumptions have historically had the most significant
effects on our level of reserves because many of our product lines provide
benefit payments over an extended period of time.

1.The discount rate, which is used in calculating both policy reserves and
incurred and IBNR claim reserves, is the interest rate that we use to discount
future claim payments to determine the present value. A higher discount rate
produces a lower reserve. If the discount rate is higher than our future
investment returns, our invested assets will not earn enough investment income
to support our future claim payments. In this case, the reserves may eventually
be insufficient. We set our assumptions based on our current and expected future
investment yield of the assets supporting the reserves, considering current and
expected future market conditions. If the investment yield on new investments
that are purchased differs from the investment yield of the existing investment
portfolio, the discount rate assumption on claims may be adjusted to reflect the
impact of the new investment yield.

2.The claim resolution rate, used for both policy reserves and incurred and IBNR
claim reserves, is the probability that a disability or long-term care claim
will close due to recovery or death of the insured. It is important because it
is used to estimate how long benefits will be paid for a claim. Estimated
resolution rates that are set too high will result in reserves that are lower
than they need to be to pay the claim benefits over time. Claim resolution
assumptions involve many factors, including the cause of disability, the
policyholder's age, the type of contractual benefits provided, and the time
since initial disability. We primarily use our own
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claim experience to develop our claim resolution assumptions. These assumptions
are established for the probability of death and the probability of recovery
from disability. Our studies review actual claim resolution experience over a
number of years, with more weight placed on our experience in the more recent
years. We also consider any expected future changes in claim resolution
experience.

3.The incidence rate, used for policy reserves and IBNR claim reserves, is the
rate at which new claims are submitted to us. The incidence rate is affected by
many factors, including the age of the insured, the insured's occupation or
industry, the benefit plan design, and certain external factors such as consumer
confidence and levels of unemployment. We establish our incidence assumption
using a historical review of actual incidence results along with an outlook of
future incidence expectations.

Establishing reserve assumptions is complex and involves many factors. Reserves,
particularly for policies offering insurance coverage for long-term disabilities
and long-term care, are dependent on numerous assumptions other than just those
presented in the preceding discussion. The impact of internal and external
events, such as changes in claims operational procedures, economic trends such
as the rate of unemployment and the level of consumer confidence, the emergence
of new diseases, new trends and developments in medical treatments, and legal
trends and legislative changes, including changes to social security and other
government-based welfare benefits programs which provide policy benefit offsets,
among other factors, may influence claim incidence rates, claim resolution
rates, and claim costs. In addition, for policies offering coverage for
disability or long-term care at advanced ages, the level and pattern of
mortality rates at advanced ages will impact overall benefit costs. Reserve
assumptions differ by product line and by policy type within a product line.
Additionally, in any period and over time, our actual experience may have a
positive or negative variance from our long-term assumptions, either singularly
or collectively, and these variances may offset each other. We test the overall
adequacy of our reserves using all assumptions and with a long-term view of our
expected experience over the life of a block of business rather than test just
one or a few assumptions independently that may be aberrant over a short period
of time. Therefore, while it is possible to evaluate the sensitivity of overall
adequacy results in our reserves based upon a change in each individual
assumption, the actual impacts of changes to a variety of underlying assumptions
must be considered in the aggregate by product line in order to judge the
overall potential implications to reserve adequacy. The following section
presents an overview of our trend analysis for key assumptions and the results
of variability in our assumptions, in aggregate, for the reserves which we
believe are reasonably possible to have a material impact on our future
financial results if actual claims yield a materially different amount than what
we currently expect and have reserved for, either favorable or unfavorable. In
December 2020, we reinsured the majority of our Closed Block individual
disability business pursuant to a reinsurance transaction with Commonwealth. In
March 2021, we completed the second phase of the reinsurance transaction to
reinsure a substantial portion of the remaining Closed Block individual
disability business that was not ceded in December 2020, primarily business that
was previously assumed. As a result, we are no longer incorporating this block
of business into our discussion of trends in key assumptions below.

Trends in Key Assumptions

Our view on long-term mortality and morbidity expectations has not been impacted
by the COVID-19 pandemic, given the limited experience relative to the long-term
nature of our products, the extraordinary nature of the event, and the fast pace
of medical advancements to fight the disease. We have experienced elevated
mortality across our life product lines largely resulting from the COVID-19
pandemic, and at this time we anticipate the mortality impacts of the pandemic
may persist in the short-term.

We have also experienced elevated disability claims incidence rates largely
resulting from the COVID-19 pandemic including, in our belief, the related
impact on the social and economic environment. We have, at times, experienced an
increase in our group long-term disability morbidity claim incidence trends
during and following a recessionary period and believe claim incidence trends
may continue to follow general economic conditions and shifts in the
demographics of the general workforce.

Generally, we do not expect our persistency trends to change significantly in
the short-term, and to the extent that these trends do change, we expect those
changes to be gradual over a longer period of time.

Although both short-term and long-term interest rates increased slightly in
2021, the long-term interest rates supporting the majority of our lines of
business remain below historical norms. The assumptions we used to discount
reserves during this period were slightly lower than historical levels for
certain of our product lines. Reserve discount rate assumptions for new policies
and new claims are periodically adjusted to reflect our current and expected net
investment returns. Changes in our average discount rate assumptions tend to
occur gradually over a longer period of time because of the long-duration
investment portfolios which support the reserves for the majority of our lines
of business.

                                       51
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Our claim resolution rate assumption used in determining reserves is our
expectation of the resolution rate we will experience over the life of the block
of business and will vary from actual experience in any one period, both
favorably and unfavorably. Claim resolution rates are very sensitive to
operational and environmental changes and have a greater chance of significant
variability in a shorter period of time than our other reserve assumptions.
These rates are reviewed on a quarterly basis for the death and recovery
components separately. While claim resolution rates in our Unum US group
long-term disability product line have shown some variability over the last
several years, they have exhibited an increasing trend.

We monitor and test our reserves for adequacy relative to all of our assumptions
in the aggregate. In our estimation, scenarios based on reasonably possible
variations in each of our reserve assumptions for our Unum US group long-term
disability product could produce a change of $100 million which represents 1.7
percent of our reserve balance. Of the assumptions impacting the estimated
change in reserves, the largest contributor is the claim resolution rate for
which we assumed a change of approximately 10 percent.

In addition to our Unum US group long-term disability line of business, we
consider variability in our reserve assumptions related to long-term care policy
reserves.  These reserves are held under the gross premium valuation method and
do not change after the date of loss recognition unless reserves are again
determined to be deficient. As such, positive developments will result in the
accumulation of reserve margin, while adverse developments would result in an
additional reserve charge.  Policy reserves for long-term care are based upon a
number of key assumptions, and each assumption has various factors which may
impact the long-term outcome. Key assumptions with respect to morbidity,
mortality, claims incidence and resolutions, persistency, interest rates, and
future premium rate increases must incorporate extended views of expectations
for many years into the future. Reserves are highly sensitive to these
estimates.

During the third quarter of 2021, we completed a review of policy and claim
reserve adequacy, which incorporated our most recent experience and included a
review of all material assumptions. Based on our analysis, during the third
quarter of 2021, we updated our reserve assumptions to reflect our current
estimate of future benefit obligations and determined that our claims reserves
should be reduced by $215.0 million in our Unum US group long-term disability
product line due primarily to sustained improvement in claim recovery trends
since our last assumption update. We also increased our claim reserves for our
Closed Block long-term care product line by $2.1 million.

Our long-term care discount rate assumption reflects our expectation that the
low interest rate environment will continue to persist and our expected impact
on future long-term care new money yield rates. Our expectation for long-term
care new money yield rates assumes a 10-year treasury rate grading over a 7 year
period, ending in 2025, to a rate of 3.25 percent, when we assume no further
increase. Partially offsetting the impact from the discount rate assumption was
a favorable update to our assumptions for premium rate increases based on
approvals and inventory updates since the third quarter of 2018. The remaining
key assumptions for our long-term care policy reserves remain materially
unchanged from the third quarter of 2018.

Sensitivity analysis related to our key assumptions for long-term care reserves
along with the potential impact to our reserve balance is as follows. This
sensitivity analysis was completed as of the date of our assumption update in
the fourth quarter of 2020 and will not be updated unless reserves are again
determined to be deficient in the future.

          Long-Term Care Assumption                              Sensitivity                      Unfavorable             Favorable
                                                                                                       (in millions of dollars)
Active Policy Terminations                                                       7.00  %       $          420          $         395
Claim Incidence                                                                  3.50  %       $          435          $         445
Claim Terminations                                                         

2.00 % $ 260 $ 255
Morbidity/Mortality Improvement*

                                    No 

Improvement/2.00% $ 1,000 $ 650
Future Unapproved Rate Increases

    10.00  %       $           80          $          80
New Money Rate                                                                   0.25  %       $          275          $         275
Discount Rate                                                                    0.25  %       $          500          $         500

* Morbidity improvement has been observed in our claims experience over a ten year period, normalized for variables such as age and
claims type.

Key assumptions and related impacts are also heavily interrelated in both their
outcome and in their effects on reserves. For example, changes in the view of
morbidity and mortality might be mitigated by either potential future premium
rate increases
                                       52
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and/or morbidity improvements due to general improvement in health and/or
medical breakthroughs. There is potentially a wide range of outcomes for each
assumption and in totality.

We believe that these ranges provide a reasonable estimate of the possible
changes in reserve balances for those product lines where we believe it is
possible that variability in the assumptions, in the aggregate, could result in
a material impact on our reserve levels, but we record our reserves based on our
long-term best estimate. Because these product lines have long-term claim payout
periods, there is a greater potential for significant variability in claim
costs, either positive or negative. We closely monitor emerging experience and
use these results to inform our view of long-term assumptions.

Deferred Acquisition Costs (DAC)

We defer incremental direct costs associated with the successful acquisition of
new or renewal insurance contracts and amortize these costs over the life of the
related policies. Deferred costs include certain commissions, other agency
compensation, selection and policy issue expenses, and field expenses.
Acquisition costs that do not vary with the production of new business, such as
commissions on group products which are generally level throughout the life of
the policy, are excluded from deferral.

Approximately 93.4 percent of our DAC relates to non-interest sensitive
products, and we amortize DAC for these products in proportion to the premium
income we expect to receive over the life of the policies. DAC related to
interest sensitive policies is amortized over the lives of the policies in
relation to the present value of estimated gross profits from surrender charges,
mortality margins, investment returns, and expense margins. Key assumptions used
in developing the future amortization of DAC are persistency, premium income,
and for our interest sensitive products, mortality margins and investment
returns.  We use our own historical experience and expectation of the future
performance of our businesses in determining our assumptions.  For non-interest
sensitive products, the estimated premium income in the early years of the
amortization period is generally higher than in the later years due to the
anticipated cumulative effect of policy persistency in the early years, which
results in a greater proportion of the costs being amortized in the early years
of the life of the policy.  Our key assumptions used to develop the future
amortization of acquisition costs deferred during 2021 did not change materially
from those used in 2020.  Generally, we do not expect our key assumptions to
change significantly in the short-term, and to the extent that these trends do
change, we expect those changes to be gradual over a longer period of time.

Loss recognition and recoverability testing is performed on an annual basis, or
more frequently if appropriate, using best estimate assumptions as to future
experience as of the date of the test. Insurance contracts are grouped for each
major product line within a segment when we perform the loss recognition and
recoverability tests. Key assumptions used in this testing include the discount
rate, persistency and the claim assumptions. See "Reserves for Policy and
Contract Benefits" herein in this Item 7 for further discussion regarding loss
recognition testing and the related key assumptions.

If loss recognition or recoverability testing indicates that deferred
acquisition costs are not recoverable, the deficiency is charged to expense.
Using our best estimate assumptions during the fourth quarter of 2021, we
determined that $15.1 million of acquisition costs related to the Unum US group
life and accidental death and dismemberment product line were not recoverable
driven by losses resulting from COVID-19 life claims, and, as a result these
amounts were not deferred.

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The following are our current assumptions regarding our DAC balances:

                                                                           Balance Remaining as a %                                     DAC Balances
                                     Amortization                          of Year-end DAC Balance                                     at December 31
                                        Period               Year 3               Year 10                Year 15                  2021                    2020
                                                                                                                                  (in millions of dollars)
Unum US
Group Disability                          4-6                  25%                   0%                    0%             $        93.7               $    95.3
Group Life and Accidental Death &
Dismemberment                             4-6                  26%                   0%                    0%                      59.1                    76.4
Supplemental and Voluntary:
  Individual Disability                   20                   74%                  26%                    5%                     426.5                   423.6
  Voluntary Benefits                     10-23                 59%                  16%                    5%                     501.0                   557.4
  Dental and Vision                        4                   26%                   0%                    0%                      15.9                    16.0

Unum International
Unum UK
Group Long-term Disability                 3                   0%                    0%                    0%                       2.6                     2.8
Group Life                                 3                   0%                    0%                    0%                       1.6                     1.2
Supplemental                              20                   54%                  11%                    2%                      13.1                    14.5
Unum Poland                               30                   77%                  52%                    38%                     18.1                    13.5

Colonial Life
Accident, Sickness, and Disability        15                   65%                  10%                    0%                     557.4                   563.2
Life                                      25                   74%                  23%                    6%                     292.4                   278.7
Cancer and Critical Illness               19                   76%                  23%                    5%                     226.5                   230.0

Totals                                                                                                                    $     2,207.9               $ 2,272.6



Amortization of DAC is adjusted to reflect actual experience for assumptions
which deviate compared to the anticipated experience. Any deviations from
projections may result in a change to the rate of amortization in the period
such events occur. As an example, for our non-interest sensitive products, we
may experience accelerated amortization if policies terminate earlier than
projected, or we may experience a slower rate of amortization if policies
persist longer than projected. Our actual experience has not varied materially
from our assumptions during the last three years.

See Notes 1 and 13 of the "Notes to Consolidated Financial Statements" contained
herein in Item 8 for further discussion of our DAC accounting policy and DAC
activity.

Fair Value of Investments

All of our fixed maturity securities, which are classified as
available-for-sale, and all of our unrestricted equity securities are reported
at fair value. Our derivative financial instruments, including certain
derivative instruments embedded in other contracts, are reported as either
assets or liabilities and measured at fair value. We report our investments in
private equity partnerships at our share of the partnerships' NAV per share or
its equivalent , as a practical expedient for fair value.

Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date and therefore represents an exit price, not an entry price.
The exit price objective applies regardless of our intent and/or ability to sell
the asset or transfer the liability at the measurement date. We generally use
valuation techniques consistent with the market approach, and to a lesser
extent, the income approach. The market approach uses prices and other relevant
information from market transactions involving identical or comparable assets or
liabilities and the income approach converts future amounts, such as cash flows
or earnings, to a single present amount, or a discounted amount. We believe the
market approach valuation technique provides more observable data than the
income approach, considering the types of investments we hold.
                                       54
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The degree of judgment utilized in measuring the fair value of financial
instruments generally correlates to the level of pricing observability.
Financial instruments with readily available active quoted prices or for which
fair value can be measured from actively quoted prices in active markets
generally have more pricing observability and less judgment utilized in
measuring fair value. The market sources from which we obtain or derive the fair
values of our assets and liabilities carried at market value include quoted
market prices for actual trades, price quotes from third party pricing vendors,
price quotes we obtain from outside brokers, discounted cash flow, and
observable prices for similar publicly traded or privately traded issues that
incorporate the credit quality and industry sector of the issuer. Our fair value
measurements could differ significantly based on the valuation technique and
available inputs.

Inputs to valuation techniques refer broadly to the assumptions that market
participants use in pricing assets or liabilities, including assumptions about
risk, for example, the risk inherent in a particular valuation technique used to
measure fair value and/or the risk inherent in the inputs to the valuation
technique. We use observable and unobservable inputs in measuring the fair value
of our financial instruments. Observable inputs are inputs that reflect the
assumptions market participants would use in pricing the asset or liability
developed based on market data obtained from independent sources. Unobservable
inputs are inputs that reflect our own assumptions about the assumptions market
participants would use in pricing the asset or liability developed based on the
best information available in the circumstances.

Certain of our investments do not have readily determinable market prices and/or
observable inputs or may at times be affected by the lack of market liquidity.
For these securities, we use internally prepared valuations, including
valuations based on estimates of future profitability, to estimate the fair
value. We consider key assumptions, such as risk-free interest rates and risk
premium adjustments, in the valuation of these types of securities.
Additionally, we may obtain prices from independent third-party brokers to aid
in establishing valuations for certain of these securities. Key assumptions used
by us to determine fair value for these securities include risk-free interest
rates, risk premiums, performance of underlying collateral (if any), and other
factors involving significant assumptions which may or may not reflect those of
an active market.

As of December 31, 2021, approximately 8.1 percent of our fixed maturity
securities were categorized as Level 1, 89.4 percent as Level 2, and 2.5 percent
as Level 3. Level 1 is the highest category of the three-level fair value
hierarchy classification wherein inputs are unadjusted and represent quoted
prices in active markets for identical assets or liabilities. The Level 2
category includes assets or liabilities valued using inputs (other than those
included in the Level 1 category) that are either directly or indirectly
observable for the asset or liability through correlation with market data at
the measurement date and for the duration of the instrument's anticipated life.
The Level 3 category is the lowest category of the fair value hierarchy and
reflects the judgment of management regarding what market participants would use
in pricing assets or liabilities at the measurement date using unobservable
inputs to extrapolate an estimated fair value.

Rapidly changing credit and equity market conditions can materially impact the
valuation of securities, and the period to period changes in value can vary
significantly.

See Note 2 of the "Notes to Consolidated Financial Statements" contained herein
in Item 8.

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Investment Credit Losses

One of the significant estimates related to investments is our credit loss
valuation. In determining when a decline in fair value below amortized cost of a
fixed maturity security represents a credit loss, we evaluate the following
factors:

•Whether we expect to recover the entire amortized cost basis of the security
•Whether we intend to sell the security or will be required to sell the security
before the recovery of its amortized cost basis
•Whether the security is current as to principal and interest payments
•The significance of the decline in value
•Current and future business prospects and trends of earnings
•The valuation of the security's underlying collateral
•Relevant industry conditions and trends relative to their historical cycles
•Market conditions
•Rating agency and governmental actions
•Bid and offering prices and the level of trading activity
•Adverse changes in estimated cash flows for securitized investments
•Changes in fair value subsequent to the balance sheet date
•Any other key measures for the related security

We evaluate available information, including the factors noted above, both
positive and negative, in reaching our conclusions. In particular, we also
consider the strength of the issuer's balance sheet, its debt obligations and
near term funding requirements, cash flow and liquidity, the profitability of
its core businesses, the availability of marketable assets which could be sold
to increase liquidity, its industry fundamentals and regulatory environment, and
its access to capital markets. Although all available and applicable factors are
considered in our analysis, our expectation of recovering the entire amortized
cost basis of the security, whether we intend to sell the security, whether it
is more likely than not we will be required to sell the security before recovery
of its amortized cost, and whether the security is current on principal and
interest payments are the most critical factors in determining whether a credit
loss is possible. The significance of the decline in value is also an important
factor, but we generally do not record a credit loss based solely on this
factor, since often other more relevant factors will impact our evaluation of a
security.

While determining whether a credit loss exists is a judgmental area, we utilize
a formal, well-defined, and disciplined process to monitor and evaluate our
fixed income investment portfolio, supported by issuer specific research and
documentation as of the end of each period. The process results in a thorough
evaluation of problem investments and the recording of credit losses on a timely
basis for investments determined to have credit loss.

We use a comprehensive rating system to evaluate the investment and credit risk
of our mortgage loans and to identify specific properties for inspection and
reevaluation. We estimate an allowance for credit losses that we expect to incur
over the life of our mortgage loans using a probability of default method. For
each loan, we estimate the probability that the loan will default before its
maturity (probability of default) and the amount of the loss if the loan
defaults (loss given default). These two factors result in an expected loss
percentage that is applied to the amortized cost of each loan to determine the
expected credit loss. Mortgage loans are reported at amortized cost less the
allowance for expected credit losses with the change in expected credit losses
recognized as a realized investment loss in our consolidated statements of
income.

There are a number of significant risks inherent in the process of monitoring
our investments for credit losses and determining when and if a credit loss
exists. These risks and uncertainties include the following possibilities:

•The assessment of a borrower's ability to meet its contractual obligations will
change.
•The economic outlook, either domestic or foreign, may be less favorable or may
have a more significant impact on the borrower than anticipated, and as such,
the investment may not recover in value.
•New information may become available concerning the security, such as
disclosure of accounting irregularities, fraud, or corporate governance issues.
•Significant changes in credit spreads may occur in the related industry.
•Significant increases in interest rates may occur and may not return to levels
similar to when securities were initially purchased.
•Adverse rating agency actions may occur.

See Notes 1 and 3 of the "Notes to Consolidated Financial Statements" contained
herein in Item 8.

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Pension and Postretirement Benefit Plans

We sponsor several defined benefit pension and other postretirement benefit
(OPEB) plans for our employees, including non-qualified pension plans. The U.S.
qualified and non-qualified defined benefit pension plans comprise the majority
of our total benefit obligation and benefit cost. We maintain a separate defined
benefit plan for eligible employees in our U.K. operation. The U.S. defined
benefit pension plans were closed to new entrants on December 31, 2013, the OPEB
plan was closed to new entrants on December 31, 2012, and the U.K. plan was
closed to new entrants on December 31, 2002.

Assumptions

Our net periodic benefit costs and the value of our benefit obligations for
these plans are determined based on a set of economic and demographic
assumptions that represent our best estimate of future expected experience.
Major assumptions used in accounting for these plans include the expected
discount (interest) rate, the long-term rate of return on plan assets, and
mortality rates. We also use, as applicable, expected increases in compensation
levels and a weighted average annual rate of increase in the per capita cost of
covered benefits, which reflects a health care cost trend rate, and the U.K.
pension plan also uses expected cost of living increases to plan benefits.

The assumptions chosen for our pension and OPEB plans are reviewed annually,
using a December 31 measurement date for each of our plans unless we are
required to perform an interim remeasurement. The discount rate, expected
long-term rate of return, and mortality rate assumptions have the most
significant effect on our net periodic benefit costs associated with these
plans. In addition to the effect of changes in our assumptions, the net periodic
cost or benefit obligation under our pension and OPEB plans may change due to
factors such as plan amendments, actual experience being different from our
assumptions, special benefits to terminated employees, and/or changes in
benefits provided under the plans.

•Discount rate - This interest assumption is based on the yield derived from a
portfolio of high quality fixed income corporate debt instruments that
reasonably match the timing and amounts of projected future benefits for each of
our retirement-related benefit plans. The rate is determined at the measurement
date. A lower discount rate increases the present value of benefit obligations
and increases our net periodic benefit cost.

•Long-term rate of return - This assumption is selected from a range of probable
return outcomes from an analysis of the asset portfolio. The market-related
value as it relates to our estimate of long-term rate of return equals the fair
value of plan assets, determined as of the measurement date. The return on plan
assets recognizes all asset gains and losses, including changes in fair value,
through the measurement date. Our expectations for the future investment returns
of the asset categories are based on a combination of historical market
performance, evaluations of investment forecasts obtained from external
consultants and economists, and current market yields. The expected return for
the total portfolio is calculated based on the plan's strategic asset
allocation. The actual rate of return on plan assets is determined based on the
fair value of the plan assets at the beginning and the end of the period,
adjusted for contributions and benefit payments. A lower long-term rate of
return on plan assets increases our net periodic benefit cost.

Investment risk is measured and monitored on an ongoing basis through annual
liability measurements, periodic asset/liability studies, and quarterly
investment portfolio reviews.  Risk tolerance is established through
consideration of plan liabilities, plan funded status, and corporate financial
condition. We believe our investment portfolios are well diversified by asset
class and sector, with no undue risk concentrations in any one category. See
Note 9 of the "Notes to Consolidated Financial Statements" contained herein in
Item 8 for further discussion of the investment portfolios for our plans.

•Mortality rate - This assumption reflects our best estimate, as of the
measurement date, of the life expectancies of plan participants in order to
determine the expected length of time for benefit payments. We derive our
assumptions from industry mortality tables.

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The weighted average assumptions used in the measurement of our net periodic
benefit costs for the years ended December 31 are as follows:

                                                                           Pension Benefits
                                                         U.S. Plans                                U.K. Plan                                  OPEB
Assumption                                        2022                2021                 2022                 2021                2022                2021
Discount Rate                                       3.10  %             2.90  %               2.00  %             1.40  %             2.90  %             2.60  %
Expected Long-term Rate of Return on
Plan Assets                                         6.00  %             6.00  %               4.20  %             3.50  %             5.75  %             5.75  %



The following illustrates the sensitivity of the below items to a 50 basis point
change in the discount rate or the expected long-term rate of return on plan
assets:

($ in millions)                                                      At or 

for the Year Ended December 31, 2021

                                                                     Net Periodic
                                                                    Benefit Cost,              Benefit              Stockholders'
Assumption                                        Change              Before Tax             Obligation           Equity, After Tax
Discount Rate                                     + 50 bp         $          (1.7)         $     (184.9)         $           146.6
Discount Rate                                     - 50 bp                    (0.8)                206.4                     (163.7)
Expected Long-term Rate of Return on Plan
Assets                                            + 50 bp                    (9.8)                     N/A                        N/A
Expected Long-term Rate of Return on Plan
Assets                                            - 50 bp                     9.8                      N/A                        N/A

Benefit Obligation and Fair Value of Plan Assets

During 2021, the fair value of plan assets in our U.S. qualified defined benefit
pension plan increased $90.8 million, or 5.3 percent due to a favorable return
on assets which resulted in a gain of approximately 9.8 percent, partially
offset by the payment of benefits and expenses. The fair value of plan assets in
our U.K. pension plan increased £9.3 million, or 4.3 percent, due primarily to a
favorable return on assets which resulted in a gain of approximately 6.1
percent. Although our rate of return on plan assets for 2021 exceeded our
assumptions used in the measurement of our net periodic benefit costs, we
believe our assumptions appropriately reflect the impact of the current economic
environment and our expectations for the future investment returns based on the
plan's asset allocation.

As of December 31, 2021, our pension and OPEB plans have an aggregate
unrecognized net actuarial loss of $651.1 million and an unrecognized prior
service credit of $1.9 million, which together represent the cumulative
liability and asset gains and losses as well as the portion of prior service
credits that have not been recognized in pension expense. The unrecognized net
actuarial loss for our pension plans, which is $664.7 million at December 31,
2021, will be amortized over the average remaining life expectancy of the plan,
which is approximately 25 years for the U.S. plan and 30 years for the U.K.
plan, to the extent that it exceeds the 10 percent corridor, as described below.
The unrecognized net actuarial gain of $13.6 million for our OPEB plan will be
amortized over the average future working life of OPEB plan participants,
estimated at two years, to the extent the gain is outside of the corridor. The
corridor for the pension and OPEB plans is established based on the greater of
10 percent of the plan assets or 10 percent of the benefit obligation.  At
December 31, 2021, $400.2 million of the actuarial loss was outside of the
corridor for the U.S. plans and £9.2 million was outside of the corridor for the
U.K. plan. At December 31, 2021, $2.4 million of the actuarial gain was outside
of the corridor for the OPEB plan.

The amortization of the unrecognized actuarial gain or loss and the unrecognized
prior service credit is a component of our net periodic benefit cost and equaled
$22.4 million, $19.7 million, and $18.4 million in 2021, 2020, and 2019,
respectively.

The fair value of plan assets in our U.S. qualified defined benefit pension plan
was $1,801.7 million at December 31, 2021, compared to $1,710.9 million at
December 31, 2020. The plan was in an underfunded position of $185.6 million and
$339.0 million at December 31, 2021 and December 31, 2020, respectively. This
year-over-year change was due primarily to the decrease in the benefit
obligation due to the increase in discount rate and a higher than expected
return on plan assets.

The fair value of plan assets in our U.K. pension plan was £224.4 million at
December 31, 2021, compared to £215.1 million at December 31, 2020. The U.K.
pension plan was in an overfunded position of £18.8 million and in an
underfunded position of £4.3 million at December 31, 2021 and 2020,
respectively. This year-over-year change was due primarily to the decrease in
the benefit obligation due to the increase in discount rate and a higher than
expected return on plan assets.
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The fair value of plan assets in our OPEB plan was $9.0 million and $9.3 million
at December 31, 2021 and 2020, respectively. These assets represent life
insurance contracts to fund the life insurance benefit portion of our OPEB plan.
Our OPEB plan represents a non-vested, non-guaranteed obligation, and current
regulations do not require specific funding levels for these benefits, which are
comprised of retiree life, medical, and dental benefits. It is our practice to
use general assets to pay medical and dental claims as they come due in lieu of
utilizing plan assets for the medical and dental benefit portions of our OPEB
plan.

See Note 9 of the "Notes to Consolidated Financial Statements" contained herein
in Item 8 for further discussion.

Income Taxes

We provide for federal, state, and foreign income taxes currently payable, as
well as those deferred due to temporary differences between the financial
reporting and tax bases of assets and liabilities.  Our accounting for income
taxes represents our best estimate of various events and transactions. The
calculation of our tax liabilities involves dealing with uncertainties in the
application of complex tax laws in a multitude of jurisdictions, both domestic
and foreign.  The amount of income taxes we pay is subject to ongoing audits in
various jurisdictions, and a material assessment by a governing tax authority
could affect profitability.

We record a valuation allowance to reduce deferred tax assets to the amount that
is more likely than not to be realized.  Significant judgment is required in
determining valuation allowances. In evaluating the ability to recover deferred
tax assets, we consider all available positive and negative evidence including
past operating results, the existence of cumulative losses in the most recent
years, forecasted earnings, future taxable income, and prudent and feasible tax
planning strategies.  In the event we determine that we most likely will not be
able to realize all or part of our deferred tax assets in the future, an
increase to the valuation allowance is charged to earnings in the period such
determination is made.  Likewise, if it is later determined that it is more
likely than not that those deferred tax assets will be realized, the previously
provided valuation allowance is reversed.

In establishing a liability for unrecognized tax benefits, assumptions are made
in determining whether, and to what extent, a tax position may be sustained.
GAAP prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of tax positions taken or
expected to be taken in income tax returns. The evaluation of a tax position is
a two step process. The first step is to determine whether it is more likely
than not that a tax position will be sustained upon examination based on the
technical merits of the position. The second step is to measure a position that
satisfies the recognition threshold at the largest amount of benefit that is
greater than 50 percent likely of being realized upon ultimate settlement. Tax
positions that previously failed to meet the more likely than not threshold but
that now satisfy the recognition threshold are recognized in the first
subsequent financial reporting period in which that threshold is met. Previously
recognized tax positions that no longer meet the more likely than not
recognition threshold are derecognized in the first subsequent financial
reporting period in which that threshold is no longer met. If a previously
recognized tax position is settled for an amount that is different from the
amount initially measured, the difference will be recognized as a tax benefit or
expense in the period the settlement is effective.

Changes in tax laws, tax regulations, or interpretations of such laws or
regulations, could have an impact on our provision for income tax and our
effective tax rate, which could significantly affect the amounts reported in our
financial statements.

See "Regulation" contained herein in Item 1. See Note 7 of the "Notes to
Consolidated Financial Statements" contained herein in Item 8.

Contingent Liabilities

On a quarterly basis, we review relevant information with respect to litigation
and contingencies to be reflected in our consolidated financial statements. An
estimated loss is accrued when it is probable that a liability has been incurred
and the amount of the loss can be reasonably estimated. It is possible that our
results of operations or cash flows in a particular period could be materially
affected by an ultimate unfavorable outcome of pending litigation or regulatory
matters depending, in part, on our results of operations or cash flows for the
particular period.  See Note 14 of the "Notes to Consolidated Financial
Statements" contained herein in Item 8.

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Accounting Developments

In 2018, the Financial Accounting Standards Board issued Accounting Standard
Update 2018-12, "Targeted Improvements to the Accounting for Long-Duration
Contracts". This update significantly amends the accounting and disclosure
requirements for long-duration insurance contracts. These changes include a
requirement to review and, if necessary, update cash flow assumptions used to
measure the liability for future policy benefits for traditional and
limited-payment contracts at least annually, with changes recognized in
earnings. In addition, we will be required to update the discount rate
assumption at each reporting date using a yield that is reflective of an
upper-medium grade fixed-income instrument, with changes recognized in other
comprehensive income. These changes result in the elimination of the provision
for risk of adverse deviation and premium deficiency (or loss recognition)
testing. We will adopt this guidance effective January 1, 2023 using the
modified retrospective approach with changes applied as of the beginning of the
earliest period presented or January 1, 2021, also referred to as the transition
date.

We are continuing our implementation efforts and are evaluating the effects of
complying with this update. We expect that the most significant impact at the
transition date will be the requirement to update the discount rate assumption
to reflect an upper-medium grade fixed-income instrument, which will be
generally equivalent to a single-A interest rate matched to the duration of our
insurance liabilities and will result in a decrease to accumulated other
comprehensive income (AOCI) within our total stockholders' equity balance of
approximately $6.5 billion to $7 billion as of January 1, 2021. In order to
illustrate the sensitivity of this adjustment, if we had used interest rates as
of December 31, 2021, the transition adjustment would have been a decrease to
AOCI and total stockholders' equity of approximately $5.8 billion to $6.3
billion. The decrease in AOCI is driven primarily by the difference between the
discount rate currently applied, which is based on an expected investment yield
from our current investment strategy, and the single-A discount rate that will
be required for our longest duration products. Our investment strategy reflects
the illiquid nature of the majority of our liability cash flows and results in
yields in the investment portfolios supporting the cash outflows required for
these products that are generally higher than a single-A yield. In addition, the
current discount rate applied to reserves for very long liability duration
products such as long-term care, include an assumption for long-term yields
rising to more historical levels. After the transition date, we will be required
to update the discount rate each subsequent reporting period with changes
recorded in other comprehensive income (OCI) and expect that this could have a
material impact on OCI.

We also expect that the adoption will have a material impact on our results of
operations and will significantly expand our disclosures. We do not have
products with market risk benefits.

Although this update will significantly impact our GAAP-based financial position
and results of operations, the update will not impact cash flows,
statutory-based financial position or results of operations, or our view of our
businesses.

For information on new accounting standards and the impact, if any, on our
financial position or results of operations, see Note 1 of the "Notes to
Consolidated Financial Statements" contained herein in Item 8.

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Consolidated Operating Results

(in millions of dollars)
                                                                               Year Ended December 31
                                               2021              % Change               2020              % Change               2019
Revenue
Premium Income                             $ 9,481.0                   1.1  %       $ 9,378.1                   0.1  %       $ 9,365.6
Net Investment Income                        2,213.2                  (6.2)           2,360.7                  (3.1)           2,435.3
Net Investment Gain (Loss)                      76.7                 (93.6)           1,199.1                     N.M.           (23.2)
Other Income                                   242.9                   8.3              224.2                   1.4              221.2
Total Revenue                               12,013.8                  (8.7)          13,162.1                   9.7           11,998.9

Benefits and Expenses
Benefits and Change in Reserves for Future
Benefits                                     7,598.6                 (15.3)           8,972.9                  19.7            7,496.2
Commissions                                  1,038.1                  (1.8)           1,057.3                  (5.8)           1,122.7
Interest and Debt Expense                      185.0                  (1.7)             188.2                   6.1              177.4
Cost Related to Early Retirement of Debt        67.3                     N.M.               -                     N.M.            27.3
Deferral of Acquisition Costs                 (508.1)                (11.8)            (576.2)                (12.5)            (658.6)
Amortization of Deferred Acquisition Costs     586.1                  (3.3)             606.1                  (0.6)             609.9

Compensation Expense                           975.2                   2.3              953.2                   6.1              898.3
Other Expenses                               1,008.6                   1.2              996.6                   5.6              943.6
Total Benefits and Expenses                 10,950.8                 (10.2)          12,198.1                  14.9           10,616.8

Income Before Income Tax                     1,063.0                  10.3              964.0                 (30.3)           1,382.1
Income Tax                                     238.8                  39.6              171.0                 (39.3)             281.8

Net Income                                 $   824.2                   3.9          $   793.0                 (27.9)         $ 1,100.3

N.M. = not a meaningful percentage

Fluctuations in exchange rates, particularly between the British pound sterling
and the U.S. dollar for our U.K. operations, have an effect on our consolidated
financial results. In periods when the pound weakens relative to the preceding
period, translating pounds into dollars decreases current period results
relative to the prior period. In periods when the pound strengthens, translating
pounds into dollars increases current period results relative to the prior
period.

The weighted average pound/dollar exchange rate for our Unum UK line of business
was 1.377, 1.287, and 1.279 for 2021, 2020, and 2019, respectively. If the 2020
and 2019 results for our U.K. operations had been translated at the 2021
exchange rate, our adjusted operating revenue by segment would have been higher
by approximately $49 million and $53 million in 2020 and 2019, respectively.
Additionally, our adjusted operating income would have been higher by
approximately $5 million and $8 million in 2020 and 2019, respectively. However,
it is important to distinguish between translating and converting foreign
currency. Except for a limited number of transactions, we do not actually
convert pounds into dollars. As a result, we view foreign currency translation
as a financial reporting item and not a reflection of operations or
profitability in the U.K.

Premium income increased in 2021 compared to 2020 due primarily to increases in
our Unum US and Unum International segments, partially offset by a decrease in
our Colonial Life segment. Premium income increased in 2020 compared to 2019 in
each of our principal operating business segments, while premium income declined
in our Closed Block segment.

Net investment income was lower in 2021, relative to 2020, due to a decrease in
the level of invested assets supporting the Closed Block individual disability
product line resulting from both phases of the previously discussed reinsurance
transaction and a decline in the yield on invested assets, partially offset by
higher miscellaneous investment income, particularly related to our private
equity partnerships. Net investment income in 2020 was lower than 2019 due to a
decline in the yield on invested assets, a decrease in the level of invested
assets supporting the Closed Block individual disability product line resulting
from the first phase of the reinsurance transaction that closed in December
2020, and lower income on our private equity partnerships.
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Partially offsetting the decline in 2020 was an increase in the level of
invested assets for our remaining product lines and higher miscellaneous
investment income.

We recognized net realized investment gains of $67.6 million and $1,302.3
million in 2021 and 2020, respectively, related to the transfer of investments
in the Closed Block individual disability reinsurance transaction. Credit losses
on fixed maturity securities of $9.3 million were recognized in net investment
gains and losses in 2021 compared to $53.6 million and $25.3 million in 2020 and
2019, respectively. We did not recognize any investment impairment losses in
2021 or 2019, but recognized $36.6 million of impairment losses in 2020 related
to certain of our home office buildings available for lease and classified as
investment real estate. Also, included in net investment gains and losses were
changes in the fair value of an embedded derivative in a modified coinsurance
arrangement, which resulted in gains (losses) of $9.7 million, $(17.0) million,
and $8.3 million in 2021, 2020, and 2019, respectively. See Notes 3 and 4 of the
"Notes to Consolidated Financial Statements" contained herein in Item 8 for
further discussion.

Other income is primarily comprised of fee-based service products in the Unum US
segment, which include leave management services and administrative only (ASO)
business, and the underlying results and associated net investment income of
certain assumed blocks of individual disability reinsured business in the Closed
Block segment.

Overall benefits experience was favorable in 2021 relative to 2020 with a
consolidated benefit ratio of 80.1 percent in 2021, compared to 95.7 percent in
2020 and generally consistent with the consolidated benefit ratio of 80.0
percent in 2019. Excluding the impacts of the reserve assumption updates in both
2021 and 2020 and the impacts from both phases of the Closed Block individual
disability reinsurance transaction, the consolidated benefit ratios were 80.7
percent in 2021 and 80.2 percent in 2020. For further discussion on the reserve
assumption updates and the Closed Block individual disability reinsurance
transaction, see the "Executive Summary" contained herein in Item 7 and Notes 6
and 12 of the "Notes to Consolidated Financial Statements" contained herein in
Item 8. The underlying benefits experience for each of our operating business
segments is discussed more fully in "Segment Results" contained herein in this
Item 7.

Commissions and the deferral of acquisition costs were lower in 2021 compared to
2020 driven primarily by lower sales in our Unum US voluntary benefits product
line and lower prior period sales in the Colonial Life segment. Also impacting
the decrease in the deferral of acquisition costs in 2021 was lower expected
recoverability in the short-term for the Unum US group life product line. The
decrease in commissions was partially offset by in-force block growth in both
the Unum US group disability product lines and the Unum International segment.
Commissions and the deferral of acquisition costs were lower in 2020 compared to
2019 driven primarily by lower sales in our Unum US voluntary benefits product
line and Colonial Life segment. The amortization of deferred acquisition costs
was lower in 2021 compared to 2020, due to a decline in the level of the
deferred asset primarily in our Unum US voluntary benefits product line. The
amortization of deferred acquisition costs in 2020 was generally consistent with
2019.

Interest and debt expense decreased slightly compared to 2020, due primarily to
an overall lower interest rate on outstanding debt, mostly offset by an overall
higher level of debt. Interest and debt expense increased in 2020 compared to
2019 due primarily to a higher level of outstanding debt. See Note 8 of the
"Notes to Consolidated Financial Statements" contained herein in Item 8 for
further discussion.

In 2021, cost related to early retirement of debt includes costs associated with
the purchase and retirement of $500.0 million aggregate principal amount of our
4.500% senior notes due 2025. In 2019, cost related to early retirement of debt
includes costs associated with the purchase and retirement of $433.1 million
aggregate liquidation/principal amount of our outstanding capital and debt
securities. See Note 8 of the "Notes to Consolidated Financial Statements"
contained herein in Item 8 for further information.

Other expenses and compensation expense, on a combined basis, increased in 2021
compared to 2020 due primarily to the amortization of the cost of reinsurance
related to the Closed Block individual disability reinsurance transaction, an
impairment loss on internal-use software, and growth in our fee-based service
products, partially offset by lower transaction costs related to the Closed
Block individual disability reinsurance transaction, a decrease in the allowance
for expected credit losses on premiums receivable and our continued focus on
expense management and operating efficiencies. Other expenses and compensation
expense, on a combined basis, increased in 2020 compared to 2019 due primarily
to growth in our fee-based service products, the costs related to an
organizational design update, transaction costs related to the Closed Block
individual disability reinsurance transaction, an impairment loss on the ROU
asset related to an operating lease for office space and an increase in the
allowance for expected credit losses on premiums receivable.

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Our effective income tax rate for 2021 was 22.5 percent, compared to 17.7
percent in 2020 and 20.4 percent in 2019. Our 2021 effective tax rate differed
from the U.S. statutory rate of 21 percent due to unfavorable impacts of the
U.K. tax rate increase enacted in June 2021. Our 2020 effective tax rate
differed from the U.S. statutory rate due to favorable adjustments related to
the impact of the net operating loss carryback and favorable tax credits,
partially offset by the unfavorable impact of the U.K tax rate increase enacted
in July 2020. Our 2019 effective tax rate differed from the U.S. statutory rate
due to favorable tax credits. See Note 7 in the "Notes to Consolidated Financial
Statements" contained herein in Item 8 for further discussion.

Consolidated Sales Results

Shown below are sales results for our three principal operating business
segments.

(in millions)
                                          Year Ended December 31
                       2021        % Change       2020        % Change        2019
Unum US              $ 941.7         (5.8) %    $ 999.6        (10.0) %    $ 1,110.1

Unum International   $ 105.8         16.9  %    $  90.5         (9.5) %    $   100.0

Colonial Life        $ 479.8         16.1  %    $ 413.1        (27.0) %    $   566.0



Sales shown in the preceding chart generally represent the annualized premium
income on new sales which we expect to receive and report as premium income
during the next 12 months following or beginning in the initial quarter in which
the sale is reported, depending on the effective date of the new sale. Sales do
not correspond to premium income reported as revenue in accordance with GAAP.
This is because new annualized sales premiums reflect current sales performance
and what we expect to recognize as premium income over a 12 month period, while
premium income reported in our financial statements is reported on an "as
earned" basis rather than an annualized basis and also includes renewals and
persistency of in-force policies written in prior years as well as current new
sales.

Sales, persistency of the existing block of business, employment and salary
growth, and the effectiveness of a renewal program are indicators of growth in
premium income. Trends in new sales, as well as existing market share, also
indicate the potential for growth in our respective markets and the level of
market acceptance of price levels and new product offerings. Sales results may
fluctuate significantly due to case size and timing of sales submissions. The
impact of COVID-19, which began in 2020, caused higher unemployment levels and
general uncertainty around the financial condition of our customers as well as
disruption in our sales processes. We have seen improvement in certain of these
factors subsequent to the onset of COVID-19, which has resulted in an increase
in sales for certain of our product lines during 2021, but we continue to see
pressure on our overall sales compared to pre-pandemic levels.

See "Segment Results" as follows for a discussion of sales by segment.

Segment Results

Our reporting segments are comprised of the following: Unum US, Unum
International, Colonial Life, Closed Block, and Corporate. Financial information
for each of our reporting segments is as follows.

In describing our results, we may at times note certain items and exclude the
impact on financial ratios and metrics to enhance the understanding and
comparability of our operational performance and the underlying fundamentals,
but this exclusion is not an indication that similar items may not recur. We
also measure and analyze our segment performance on the basis of "adjusted
operating revenue" and "adjusted operating income" or "adjusted operating loss",
which differ from total revenue and income before income tax as presented in our
consolidated statements of income due to the exclusion of investment gains and
losses and certain other items. These performance measures are in accordance
with GAAP guidance for segment reporting, but they should not be viewed as a
substitute for total revenue, income before income tax, or net income.  See
"Reconciliation of Non-GAAP Financial Measures" contained herein in this Item 7.

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Unum US Segment

The Unum US segment is comprised of the group disability, group life and
accidental death and dismemberment, and supplemental and voluntary lines of
business. The group disability line of business includes long-term and
short-term disability, medical stop-loss, and fee-based service products. The
supplemental and voluntary line of business includes individual disability,
voluntary benefits, and dental and vision products.

Unum US Operating Results

Shown below are financial results for the Unum US segment. In the sections
following, financial results and key ratios are also presented for the major
lines of business within the segment.

(in millions of dollars, except ratios)

                                                                                 Year Ended December 31
                                                2021                 % Change               2020               % Change               2019
Adjusted Operating Revenue
Premium Income                            $    6,078.0                     1.0  %       $ 6,018.9                      -  %       $ 6,016.6
Net Investment Income                            721.6                     0.2              720.3                   (2.6)             739.4
Other Income                                     170.0                     9.7              154.9                    8.5              142.8
Total                                          6,969.6                     1.1            6,894.1                   (0.1)           6,898.8

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                                4,338.8                     4.8            4,138.7                    2.9            4,022.1
Commissions                                      583.4                    (1.9)             594.9                   (5.3)             628.5
Deferral of Acquisition Costs                   (242.7)                  (16.7)            (291.5)                 (12.9)            (334.5)
Amortization of Deferred Acquisition
Costs                                            319.0                    (6.5)             341.0                   (0.9)             344.0
Other Expenses                                 1,291.2                     0.4            1,285.6                    6.5            1,207.6
Total                                          6,289.7                     3.6            6,068.7                    3.4            5,867.7

Income Before Income Tax and Net
Investment Gains and Losses                      679.9                   (17.6)             825.4                  (19.9)           1,031.1
Reserve Assumption Update                       (215.0)                      N.M.               -                      N.M.               -
Adjusted Operating Income                 $      464.9                   (43.7)         $   825.4                  (19.9)         $ 1,031.1

Operating Ratios (% of Premium Income):
Benefit Ratio1                                    74.9   %                                   68.8  %                                   66.9  %

Other Expense Ratio                               21.2   %                                   21.4  %                                   20.1  %

Adjusted Operating Income Ratio                    7.6   %                                   13.7  %                                   17.1  %

1Excludes the $215.0 million reserve decrease related to the assumption update that occurred during the third quarter of 2021.

N.M. = not a meaningful percentage

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Unum US Group Disability Operating Results

Shown below are financial results and key performance indicators for Unum US
group disability.

(in millions of dollars, except ratios)

                                                                                 Year Ended December 31
                                                 2021                % Change               2020              % Change               2019
Adjusted Operating Revenue
Premium Income
Group Long-term Disability                 $    1,827.8                      -  %       $ 1,828.5                   0.3  %       $ 1,823.1
Group Short-term Disability                       864.0                    8.1              799.2                   4.0              768.8
Total Premium Income                            2,691.8                    2.4            2,627.7                   1.4            2,591.9
Net Investment Income                             379.6                   (2.4)             388.8                  (3.2)             401.5
Other Income                                      165.7                   12.3              147.6                  10.3              133.8
Total                                           3,237.1                    2.3            3,164.1                   1.2            3,127.2

Benefits and Expenses
Benefits and Change in Reserves for Future
Benefits                                        1,849.2                   (3.8)           1,921.9                  (0.3)           1,927.9
Commissions                                       199.8                    4.2              191.8                  (1.0)             193.8
Deferral of Acquisition Costs                     (49.8)                   1.0              (49.3)                 (0.4)             (49.5)
Amortization of Deferred Acquisition Costs         51.4                   (3.2)              53.1                   4.7               50.7
Other Expenses                                    773.9                    2.3              756.6                  12.6              672.1
Total                                           2,824.5                   (1.7)           2,874.1                   2.8            2,795.0

Income Before Income Tax and Net
Investment Gains and Losses                       412.6                   42.3              290.0                 (12.7)             332.2
Reserve Assumption Update                        (215.0)                     N.M.               -                     N.M.               -
Adjusted Operating Income                  $      197.6                  (31.9)         $   290.0                 (12.7)         $   332.2

Operating Ratios (% of Premium Income):
Benefit Ratio1                                     76.7   %                                  73.1  %                                  74.4  %
Other Expense Ratio                                28.8   %                                  28.8  %                                  25.9  %
Adjusted Operating Income Ratio                     7.3   %                                  11.0  %                                  12.8  %

Persistency:
Group Long-term Disability                         89.6   %                                  90.8  %                                  90.7  %
Group Short-term Disability                        87.4   %                                  88.7  %                                  89.8  %

1Excludes the $215.0 million reserve decrease related to the assumption update that occurred during the third quarter of 2021.

N.M. = not a meaningful percentage

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Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Premium income increased compared to 2020, driven primarily by growth in our
group short-term disability and medical stop-loss product lines, partially
offset by lower persistency. Net investment income was lower relative to
2020 due to a decline in yield on invested assets, partially offset by higher
miscellaneous investment income. Other income increased relative to 2020 due to
continued growth in our fee-based service products.

Benefits experience, excluding the impact of the reserve assumption update, was
unfavorable compared to 2020 due to higher claims incidence in both the group
long-term and short-term disability product lines, partially offset by favorable
recoveries in the long-term disability product line. See "Executive Summary"
contained herein in this Item 7 and Note 6 of the "Notes to Consolidated
Financial Statements" contained herein in Item 8 for further discussion on the
reserve assumption update.

Commissions were higher compared to 2020 due primarily to in-force block growth
in the group short-term disability and medical stop-loss product lines. The
deferral of acquisition costs was generally consistent with 2020. The
amortization of deferred acquisition costs decreased compared to 2020 due to a
decline in the level of the deferred asset. The other expense ratio was
consistent with 2020.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Premium income increased compared to 2019, driven primarily by growth in the
in-force block resulting from higher prior period sales, partially offset by
lower persistency in the short-term disability product line. Net investment
income was lower relative to 2019 due to a decline in yield on invested assets
and a lower level of invested assets, partially offset by higher miscellaneous
investment income. Other income increased relative to 2019 due to continued
growth in our fee-based service products.

Benefits experience was favorable compared to 2019 due primarily to favorable
claim recovery experience in our group long-term disability product line,
partially offset by higher claims incidence in the short-term disability product
line, resulting from the impacts of COVID-19.

Commissions and the deferral of acquisition costs were slightly lower compared
to 2019 due to lower sales. The amortization of deferred acquisition costs
increased relative to 2019 due to growth in the level of the deferred asset. Our
other expense ratio for 2020 increased compared to 2019 due primarily to an
increase in expenses associated with our fee-based service products, partially
elevated from higher volumes due to the COVID-19 environment. Also contributing
to the higher expense ratio was an increase in operational investments in our
business which was balanced with our continued focus on expense management and
operating efficiencies.

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Unum US Group Life and Accidental Death and Dismemberment Operating Results

Shown below are financial results and key performance indicators for Unum US
group life and accidental death and dismemberment.

(in millions of dollars, except ratios)

                                                                              Year Ended December 31
                                              2021              % Change               2020              % Change               2019
Adjusted Operating Revenue
Premium Income
Group Life                                $ 1,641.9                   0.1  %       $ 1,640.5                  (1.3) %       $ 1,662.0
Accidental Death & Dismemberment              165.1                   0.7              163.9                  (1.1)             165.7
Total Premium Income                        1,807.0                   0.1            1,804.4                  (1.3)           1,827.7
Net Investment Income                         104.0                   7.0               97.2                  (9.5)             107.4
Other Income                                    1.7                 (29.2)               2.4                 (11.1)               2.7
Total                                       1,912.7                   0.5            1,904.0                  (1.7)           1,937.8

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                             1,728.8                  17.6            1,470.4                  11.9            1,314.1
Commissions                                   144.7                   1.0              143.2                  (3.0)             147.7
Deferral of Acquisition Costs                 (21.0)                (41.7)             (36.0)                 (4.8)             (37.8)
Amortization of Deferred Acquisition
Costs                                          38.3                  (2.5)              39.3                   3.1               38.1
Other Expenses                                213.8                   4.1              205.3                  (1.8)             209.0
Total                                       2,104.6                  15.5            1,822.2                   9.0            1,671.1

Adjusted Operating Income (Loss)          $  (191.9)                    N.M.       $    81.8                 (69.3)         $   266.7

Operating Ratios (% of Premium Income):
Benefit Ratio                                  95.7  %                                  81.5  %                                  71.9  %
Other Expense Ratio                            11.8  %                                  11.4  %                                  11.4  %
Adjusted Operating Income (Loss) Ratio        (10.6) %                                   4.5  %                                  14.6  %

Persistency:
Group Life                                     89.7  %                                  88.8  %                                  90.6  %
Accidental Death & Dismemberment               89.1  %                                  88.2  %                                  89.9  %

N.M. = not a meaningful percentage

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Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Premium income was generally consistent with 2020. Net investment income was
higher compared to 2020 due to increased miscellaneous investment income and a
higher level of invested assets, partially offset by a decline in yield on
invested assets.

Benefits experience was unfavorable compared to 2020 due to higher mortality in
the group life product line, resulting primarily from the impacts of COVID-19.

Commissions were higher compared to 2020 due primarily to in-force block growth.
The deferral of acquisition costs was lower compared to 2020 due to lower
expected recoverability in the short-term driven by COVID-19 related life
claims. As a result, $15.1 million of current year acquisition costs were not
deferred. The amortization of deferred acquisition costs was lower compared to
2020 due to a decline in the level of the deferred asset. The other expense
ratio increased compared to 2020 due primarily to an increase in operational
investments in our business, partially offset by our continued focus on expense
management and operating efficiencies.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Premium income decreased compared to 2019 due to lower sales and persistency.
Net investment income was lower compared to 2019 due to a decline in yield on
invested assets and a lower level of invested assets.

Benefits experience was unfavorable compared to 2019 due primarily to higher
claims incidence in the group life product line, resulting from the impacts of
COVID-19, partially offset by favorable experience in the accidental death and
dismemberment product line.

Commissions and the deferral of acquisition costs were lower compared to 2019
due to lower sales. The amortization of deferred acquisition costs increased
relative to 2019 due to growth in the level of the deferred asset. The other
expense ratio was consistent with 2019.


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Unum US Supplemental and Voluntary Operating Results

Shown below are financial results and key performance indicators for Unum US
supplemental and voluntary product lines.

(in millions of dollars, except ratios)

                                                                               Year Ended December 31
                                                2021              % Change              2020              % Change              2019
Adjusted Operating Revenue
Premium Income
Individual Disability                        $  459.8                   0.8  %       $  456.0                   3.5  %       $  440.7
Voluntary Benefits                              846.7                  (3.3)            875.2                  (3.8)            910.2
Dental and Vision                               272.7                   6.7             255.6                   3.9             246.1
Total Premium Income                          1,579.2                  (0.5)          1,586.8                  (0.6)          1,597.0
Net Investment Income                           238.0                   1.6             234.3                   1.6             230.5
Other Income                                      2.6                 (46.9)              4.9                 (22.2)              6.3
Total                                         1,819.8                  (0.3)          1,826.0                  (0.4)          1,833.8

Benefits and Expenses
Benefits and Change in Reserves for Future
Benefits                                        760.8                   1.9             746.4                  (4.3)            780.1
Commissions                                     238.9                  (8.1)            259.9                  (9.4)            287.0
Deferral of Acquisition Costs                  (171.9)                (16.6)           (206.2)                (16.6)           (247.2)
Amortization of Deferred Acquisition Costs      229.3                  (7.8)            248.6                  (2.6)            255.2
Other Expenses                                  303.5                  (6.2)            323.7                  (0.9)            326.5
Total                                         1,360.6                  (0.9)          1,372.4                  (2.1)          1,401.6

Adjusted Operating Income                    $  459.2                   1.2          $  453.6                   5.0          $  432.2

Operating Ratios (% of Premium Income):
Benefit Ratios:
Individual Disability                            42.8  %                                 48.8  %                                 50.9  %
Voluntary Benefits                               43.2  %                                 42.2  %                                 41.8  %
Dental and Vision                                72.6  %                                 60.6  %                                 71.1  %
Other Expense Ratio                              19.2  %                                 20.4  %                                 20.4  %
Adjusted Operating Income Ratio                  29.1  %                                 28.6  %                                 27.1  %

Persistency:
Individual Disability                            89.7  %                                 89.5  %                                 89.8  %
Voluntary Benefits                               75.8  %                                 72.7  %                                 73.2  %
Dental and Vision                                86.0  %                                 85.0  %                                 82.6  %



                                       69

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Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Premium income decreased compared to 2020, with a decline in the voluntary
benefits product line partially offset by growth in the dental and vision and
individual disability product lines. Net investment income increased in 2021
compared to 2020 due to higher miscellaneous investment income, partially offset
by a decline in yield on invested assets.

Benefits experience for the individual disability product line was favorable
compared to 2020 due primarily to lower claims incidence. Benefits experience
for voluntary benefits was less favorable compared to 2020 due primarily to
higher incidence in the life product line, resulting from the impacts of
COVID-19. Benefits experience for the dental and vision product line was
unfavorable due primarily to higher claims incidence compared to 2020 where we
experienced significantly lower claims incidence resulting from the impacts of
COVID-19.

Commissions and the deferral of acquisition costs were lower compared to 2020
due primarily to lower sales in the voluntary benefits product line. The
amortization of deferred acquisition costs decreased compared to 2020 due to a
decline in the level of the deferred asset, primarily in the voluntary benefits
product line. The other expense ratio improved compared to 2020 due to our
continued focus on expense management and operational efficiencies. Also
contributing to the improvement was the change in the allowance for expected
credit losses on premiums receivable, which was lower in 2021 compared to 2020.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Premium income decreased compared to 2019, with a decline in the voluntary
benefits product line mostly offset by growth in the individual disability and
dental and vision product lines. Net investment income was higher compared to
2019 due to higher miscellaneous investment income and an increase in the level
of invested assets, partially offset by a decline in yield on invested assets.
Benefits experience for the individual disability product line was favorable
compared to 2019 due to both favorable claim recoveries and mortality
experience. Benefits experience for voluntary benefits was unfavorable compared
to 2019 due primarily to higher claims incidence in the life and disability
product line, resulting from the impacts of COVID-19. Benefits experience for
the dental and vision product line was favorable compared to 2019 driven by
lower claims incidence resulting from the impacts of COVID-19.

Commissions and the deferral of acquisition costs were lower in 2020 compared to
2019 due primarily to lower sales in the voluntary benefits product line. The
amortization of deferred acquisition costs decreased in 2020 relative to 2019
due primarily to a decline in the level of the deferred asset in the voluntary
benefits product line. The other expense ratio was consistent compared to 2019
due to our continued focus on expense management and operating efficiencies.


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Sales

(in millions of dollars)
                                                                              Year Ended December 31
                                               2021             % Change              2020             % Change               2019
Sales by Product
Group Disability and Group Life and AD&D
Group Long-term Disability                  $ 206.6                 (13.8) %       $ 239.7                  (0.7) %       $   241.5
Group Short-term Disability                   142.7                 (10.1)           158.7                  (0.3)             159.2
Group Life and AD&D                           223.8                  (0.2)           224.3                 (13.2)             258.3
Subtotal                                      573.1                  (8.0)           622.7                  (5.5)             659.0
Supplemental and Voluntary
Individual Disability                          75.0                   5.0             71.4                  (5.9)              75.9
Voluntary Benefits                            231.2                  (4.3)           241.6                 (19.6)             300.6
Dental and Vision                              62.4                  (2.3)            63.9                 (14.3)              74.6
Subtotal                                      368.6                  (2.2)           376.9                 (16.4)             451.1
Total Sales                                 $ 941.7                  (5.8)         $ 999.6                 (10.0)         $ 1,110.1

Sales by Market Sector
Group Disability and Group Life and AD&D
Core Market (< 2,000 employees)             $ 371.5                  (1.5) %       $ 377.0                   1.7  %       $   370.8
Large Case Market                             201.6                 (17.9)           245.7                 (14.7)             288.2
Subtotal                                      573.1                  (8.0)           622.7                  (5.5)             659.0
Supplemental and Voluntary                    368.6                  (2.2)           376.9                 (16.4)             451.1
Total Sales                                 $ 941.7                  (5.8)         $ 999.6                 (10.0)         $ 1,110.1

Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Group sales decreased compared to 2020 due primarily to lower sales to new and
existing customers in the large case market and lower sales in our medical
stop-loss product, partially offset by higher sales to existing customers in the
core market. The sales mix in the group market sector for 2021 was approximately
65 percent core market and 35 percent large case market.

Individual disability sales, which are primarily concentrated in the multi-life
market, increased compared to 2020 due to higher sales to existing customers,
partially offset by a decline in sales to new customers. Voluntary benefits
sales decreased compared to 2020, driven by lower new and existing customer
sales in the large case market, partially offset by higher sales to new and
existing customers in the core market. Dental and vision sales decreased
slightly compared to 2020 driven by lower sales to new customers, mostly offset
by higher sales to existing customers.

As 2021 progressed we saw a decline in the sales disruption caused by COVID-19,
which has resulted in an increase in sales during the latter half of 2021 for
certain of our product lines, particularly in the supplemental and voluntary
product lines. However, we continue to see pressure on our overall sales
resulting from the impacts of COVID-19 including increased competition in the
large-case market while we maintain risk and pricing discipline as the recovery
from the pandemic progresses. Further discussion of COVID-19 is contained herein
in "Executive Summary" in this Item 7.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Group sales increased in the core market compared to 2019 due to growth in our
medical stop-loss product, partially offset by lower sales to new and existing
customers in our group disability and group life products. Group sales declined
in the large case market compared to 2019 due to lower sales to new and existing
customers in all products. The sales mix in the group market sector for 2020 was
approximately 61 percent core market and 39 percent large case market.

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Individual disability sales decreased compared to 2019 due to lower sales to
both new and existing customers. Voluntary benefits sales decreased compared to
2019, driven by lower new and existing customer sales in both the core and large
case markets. Dental and vision sales decreased compared to 2019 driven by lower
sales to both new and existing customers.

We believe the lower sales levels during 2020 compared to 2019 were driven by
the impact of COVID-19, which caused higher unemployment levels and general
uncertainty around the financial condition of our customers as well as
disruption in our sales processes.

Goodwill

We had total goodwill of $280.0 million for the Unum US segment at December 31,
2021, none of which is currently believed to be at risk for future impairment.

Segment Outlook

We remain committed to offering consumers a broad set of financial protection
benefit products at the worksite. During 2022, we will continue to invest in a
unique customer experience defined by simplicity, empathy, and deep industry
expertise through the increased utilization of digital capabilities and
technology to enhance enrollment, underwriting, and claims processing. In
addition, we will continue to focus on the expansion of our portfolio of
products. In particular, with respect to smaller employers, we will continue to
provide comprehensive consumer-focused products, enhance our distribution model,
and utilize our digital tools to bring industry leading enrollment capabilities
and a fully integrated customer experience. Our differentiated offerings and
significant investment in leave management services provides substantial growth
opportunities, particularly with larger employers, and stronger persistency in
our core products. We believe our active client management, integrated customer
experience across our product lines, and strong risk management, will enable us
to continue to grow our market over the long-term.

Our near-term results will be influenced by pandemic trends, specifically the
working population mortality levels along with the level and severity of
infection rates. As the pandemic impacts lessen, we anticipate seeing a recovery
in earnings given the underlying strength of our business. We expect full year
premium income to grow at a rate slightly higher than 2021. While we expect our
claim experience to improve as impacts from COVID-19 lessen, we may also
continue to experience claims volatility, particularly in our group disability
and group and voluntary life products. We may also experience potential
disruption in our overall claims processing activity, which can result in
short-term unfavorable experience. Furthermore, we could continue to experience
an increase in the volume of activity associated with our leave management
services which would lead to an increase in expenses.

The low interest rate environment continues to place pressure on our profit
margins by impacting net investment income yields as well as potentially
discount rates on our insurance liabilities. Our net investment income may
continue to be impacted by fluctuations in miscellaneous investment income.

As part of our discipline in pricing and reserving, we continuously monitor
emerging claim trends and interest rates. We will continue to take appropriate
pricing actions on new business and renewals that are reflective of the current
environment.

We continuously monitor key indicators to assess our risks and adjust our
business plans accordingly.

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Unum International Segment

The Unum International segment is comprised of our operations in both the United
Kingdom and Poland. Our Unum UK products include insurance for group long-term
disability, group life, and supplemental lines of business, which includes
dental, individual disability, and critical illness products. Our Unum Poland
products include insurance for individual and group life with accident and
health riders. Unum International's products are sold primarily through field
sales personnel and independent brokers and consultants.

Operating Results

Shown below are financial results and key performance indicators for the Unum
International segment.

(in millions of dollars, except ratios)

                                                                                 Year Ended December 31
                                                  2021              % Change              2020              % Change              2019
Adjusted Operating Revenue
Premium Income
Unum UK
Group Long-term Disability                     $ 401.9                   10.1  %       $ 364.9                    3.3  %       $ 353.4
Group Life                                       112.3                    3.5            108.5                   (6.2)           115.7
Supplemental                                     112.6                   12.8             99.8                   11.5             89.5
Unum Poland                                       90.2                   13.3             79.6                      10.7          71.9
Total Premium Income                             717.0                    9.8            652.8                    3.5            630.5
Net Investment Income                            132.7                   26.9            104.6                  (14.6)           122.5
Other Income                                       0.6                   20.0              0.5                  (16.7)             0.6
Total                                            850.3                   12.2            757.9                    0.6            753.6

Benefits and Expenses
Benefits and Change in Reserves for Future
Benefits                                         556.2                   11.0            500.9                    6.6            469.8
Commissions                                       54.1                    8.9             49.7                    2.1             48.7
Deferral of Acquisition Costs                    (12.8)                   5.8            (12.1)                  (5.5)           (12.8)
Amortization of Deferred Acquisition Costs         8.0                    8.1              7.4                    4.2              7.1
Other Expenses                                   139.1                    2.7            135.4                    1.9            132.9
Total                                            744.6                    9.3            681.3                    5.5            645.7

Adjusted Operating Income                      $ 105.7                   38.0          $  76.6                  (29.0)         $ 107.9



Foreign Currency Translation

The functional currencies of Unum UK and Unum Poland are the British pound
sterling and Polish zloty, respectively. Premium income, net investment income,
claims, and expenses are received or paid in the functional currency, and we
hold functional currency-denominated assets to support functional
currency-denominated policy reserves and liabilities. We translate functional
currency-denominated financial statement items into dollars for our consolidated
financial reporting. We translate income statement items using an average
exchange rate for the reporting period, and we translate balance sheet items
using the exchange rate at the end of the period. We report unrealized foreign
currency translation gains and losses in accumulated other comprehensive income
in our consolidated balance sheets.

Fluctuations in exchange rates impact Unum International's reported financial
results and our consolidated financial results. In periods when the functional
currency strengthens relative to the preceding period, translation increases
current period results relative to the prior period. In periods when the
functional currency weakens, translation decreases current period results
relative to the prior period.
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Unum UK Operating Results

Shown below are financial results and key performance indicators for the Unum UK
product lines in functional currency.
(in millions of pounds, except ratios)
                                                                            

Year Ended December 31

                                               2021             % Change              2020             % Change              2019
Adjusted Operating Revenue
Premium Income
Group Long-term Disability                  £ 292.0                   2.7  %       £ 284.2                   2.7  %       £ 276.8
Group Life                                     81.7                  (3.4)            84.6                  (6.7)            90.7
Supplemental                                   81.8                   5.3             77.7                  11.0             70.0
Total Premium Income                          455.5                   2.0            446.5                   2.1            437.5
Net Investment Income                          91.0                  19.7             76.0                 (16.0)            90.5
Other Income                                    0.1                     -              0.1                 (50.0)             0.2
Total                                         546.6                   4.6            522.6                  (1.1)           528.2

Benefits and Expenses
Benefits and Change in Reserves for Future
Benefits                                      362.8                   2.9            352.5                   5.1            335.5
Commissions                                    28.7                   2.1             28.1                  (1.7)            28.6
Deferral of Acquisition Costs                  (4.3)                  2.4             (4.2)                (22.2)            (5.4)
Amortization of Deferred Acquisition Costs      5.1                  (3.8)             5.3                  (1.9)             5.4
Other Expenses                                 81.8                  (5.4)            86.5                   3.3             83.7
Total                                         474.1                   1.3            468.2                   4.6            447.8

Adjusted Operating Income                   £  72.5                  33.3          £  54.4                 (32.3)         £  80.4

Weighted Average Pound/Dollar Exchange Rate   1.377                                  1.287                                  1.279

Operating Ratios (% of Premium Income):
Benefit Ratio                                  79.6  %                                78.9  %                                76.7  %
Other Expense Ratio                            18.0  %                                19.4  %                                19.1  %
Adjusted Operating Income Ratio                15.9  %                                12.2  %                                18.4  %

Persistency:
Group Long-term Disability                     89.3  %                                88.2  %                                89.9  %
Group Life                                     86.5  %                                81.8  %                                89.0  %
Supplemental                                   90.9  %                                90.7  %                                89.9  %

Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Premium income was higher compared to 2020 primarily due to growth in the
in-force blocks resulting from the impact of rate increases in the group
long-term disability product line and higher overall persistency.

Net investment income was higher compared to 2020 due to higher investment
income from inflation index-linked bonds and a higher level of invested assets,
partially offset by a lower yield on fixed-rate bonds. Our investments in
inflation index-linked bonds support the claim reserves associated with certain
group policies that provide for inflation-linked increases in benefits. The
change in net investment income attributable to these inflation index-linked
bonds is generally offset by a change in the reserves for future claim payments
related to the inflation index-linked group long-term disability and group life
policies.

Benefits experience was unfavorable relative to 2020 due to higher
inflation-linked experience in benefits, higher claims incidence in the group
life product line and lower claim resolutions in the group long-term disability
product line that resulted
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from continued disruptions to health services caused by COVID-19, partially
offset by lower claims incidence in the group long-term disability product line.

Commissions and the deferral of acquisition costs were slightly higher relative
to 2020 due to higher sales and in-force block growth. The amortization of
acquisition costs was slightly lower than the prior year due to a decline in the
level of the deferred asset. The other expense ratio improved relative to 2020
due to certain prior year expenses related to COVID-19 that did not recur and
our continued focus on expense management.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Premium income increased compared to 2019 due to growth in the in-force blocks
and the impact of rate increases in the group long-term disability product line.

Net investment income decreased compared to 2019 due to lower miscellaneous
investment income that resulted from a higher than normal level of bond calls in
2019, a decline in the yield on fixed-rate bonds, and lower investment income
from inflation index-linked bonds. The decrease in net investment income
attributable to these index-linked bonds was largely offset by a decrease in the
reserves for future claim payments related to the inflation index-linked group
long-term disability and group life policies.

Benefits experience was unfavorable relative to 2019 due to lower claim
resolutions in the group long-term disability product line that resulted from
continued disruption in claim processes related to COVID-19 and higher claims
incidence in the group life product line, partially offset by the impact of
lower inflation-linked increases in benefits related to our group products.

Commissions and the deferral of acquisition costs decreased relative to 2019 due
to lower sales. The amortization of acquisition costs was generally consistent
with the prior year. The other expense ratio increased relative to 2019 as
certain expenses related to COVID-19 were mostly offset by our continued focus
on expense management.

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Sales

(in millions of dollars and pounds)

                                                                 Year Ended 

December 31

                                               2021        % Change       2020       % Change       2019
Unum International Sales by Product
Unum UK
Group Long-term Disability                   $  41.4          9.8  %    $ 37.7        (12.7) %    $  43.2
Group Life                                      31.3         51.9         20.6        (15.2)         24.3
Supplemental                                    17.0        (10.1)        18.9         (3.1)         19.5
Unum Poland                                     16.1         21.1         13.3             2.3       13.0
Total Sales                                  $ 105.8         16.9       $ 90.5         (9.5)      $ 100.0

Unum International Sales by Market Sector
Unum UK
Group Long-term Disability and Group Life
Core Market (< 500 employees)                $  41.5         14.6  %    $ 36.2         (5.2) %    $  38.2
Large Case Market                               31.2         41.2         22.1        (24.6)         29.3
Subtotal                                        72.7         24.7         58.3        (13.6)         67.5
Supplemental                                    17.0        (10.1)        18.9         (3.1)         19.5
Unum Poland                                     16.1         21.1         13.3             2.3       13.0
Total Sales                                  $ 105.8         16.9       $ 90.5         (9.5)      $ 100.0

Unum UK Sales by Product
Group Long-term Disability                   £  30.0          1.7  %    £ 29.5        (12.5) %    £  33.7
Group Life                                      22.8         41.6         16.1        (15.3)         19.0
Supplemental                                    12.3        (17.4)        14.9         (1.3)         15.1
Total Sales                                  £  65.1          7.6       £ 60.5        (10.8)      £  67.8

Unum UK Sales by Market Sector
Group Long-term Disability and Group Life
Core Market (< 500 employees)                £  30.2          6.7  %    £ 28.3         (5.4) %    £  29.9
Large Case Market                               22.6         30.6         17.3        (24.1)         22.8
Subtotal                                        52.8         15.8         45.6        (13.5)         52.7
Supplemental                                    12.3        (17.4)        14.9         (1.3)         15.1
Total Sales                                  £  65.1          7.6       £ 60.5        (10.8)      £  67.8



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The following discussion of sales results relates only to our Unum UK product
lines and is based on functional currency.

Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Group long-term disability sales were generally consistent with 2020, with an
increase in sales to existing customers in the large case market mostly offset
by lower sales to new customers in the large case market and lower sales to
existing customers in the core market.

Group life sales increased in 2021 compared to 2020 due to an increase in sales
to new customers in both our core and large case markets and higher sales to
existing customers in the large case market, partially offset by lower sales to
existing customers in our core market.

Supplemental sales were lower in 2021 compared to 2020 due primarily to a
decline in the group critical illness product, partially offset by an increase
in dental product sales.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Group long-term disability sales were lower in 2020 compared to 2019, with lower
sales to new and existing customers in both the core market and the large case
market.

Group life sales declined in 2020 compared to 2019 due to a decrease in sales to
new customers in both our core and large case markets and lower sales to
existing customers in the large case market, partially offset by higher sales to
existing customers in our core market.

Supplemental sales were lower in 2020 compared to 2019 due primarily to a
decline in dental product sales, partially offset by an increase in the group
critical illness product line.

Goodwill

We had total goodwill of $44.5 million for the Unum International segment at
December 31, 2021, of which, $39.8 million is attributed to the Unum UK
reporting unit and $4.7 million is attributed to the Unum Poland reporting unit.
Fair value of our reporting units is estimated using a combination of the income
and market approaches and the key assumptions used are projected earnings and
discount rate. To the extent that the future profitability of these reporting
units deteriorates from current assumptions, the goodwill related to the
reporting units could be at risk for impairment.

Segment Outlook

We are committed to driving growth in the Unum International segment and will
build on the capabilities that we believe will generate growth and profitability
in our businesses over the long term. For our Unum UK line of business,
achieving growth within our existing portfolio of products remains a priority.
We will focus on delivering a high quality service and building best in class
health and wellbeing services to continue to improve retention of our key
customers and drive growth in small case business. We will also maintain our
disciplined sales approach. Within our Unum Poland line of business, we will
leverage our U.S. and U.K. expertise to grow existing distribution channels and
expand our current product offerings. We continue to invest in digital
capabilities, technology, and product enhancements which we believe will drive
sustainable growth over the long term.

We expect to see increased demand for protection products as a result of the
pandemic. We expect strong premium growth and improving claims experience but
recognize that we could continue to experience claims volatility in our group
life and disability product lines. Despite ongoing economic uncertainty, we
believe we are well positioned to capitalize on future growth opportunities as
the operating environment improves. As part of our continued pricing discipline
and our reserving methodology, we continuously monitor emerging interest rate
experience and adjust our pricing and reserve discount rates, as appropriate. We
will likely continue to experience volatility in net investment income and our
benefit ratio due to fluctuations in the level of inflation in the U.K. We
continuously monitor key indicators to assess our risks and adjust our business
plans accordingly to respond to external challenges.
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Colonial Life Segment

The Colonial Life segment includes insurance for accident, sickness, and
disability products, which includes our dental and vision products, life
products, and cancer and critical illness products issued primarily by Colonial
Life & Accident Insurance Company and marketed to employees, on both a group and
an individual basis, at the workplace through an independent contractor agent
sales force and brokers.

Operating Results

Shown below are financial results and key performance indicators for the
Colonial Life segment.

(in millions of dollars, except ratios)

                                                                               Year Ended December 31
                                                2021              % Change              2020              % Change              2019
Adjusted Operating Revenue
Premium Income
Accident, Sickness, and Disability           $  953.3                  (2.2) %       $  975.1                   0.2  %       $  973.4
Life                                            384.7                   2.2             376.4                   7.1             351.6
Cancer and Critical Illness                     352.2                  (2.3)            360.5                   0.1             360.0
Total Premium Income                          1,690.2                  (1.3)          1,712.0                   1.6           1,685.0
Net Investment Income                           172.0                  10.5             155.7                   5.2             148.0
Other Income                                      1.0                  (9.1)              1.1                 (67.6)              3.4
Total                                         1,863.2                  (0.3)          1,868.8                   1.8           1,836.4

Benefits and Expenses
Benefits and Change in Reserves for Future
Benefits                                        910.4                   0.4             906.5                   4.8             865.0
Commissions                                     320.1                  (4.2)            334.3                  (8.3)            364.5
Deferral of Acquisition Costs                  (252.6)                 (7.3)           (272.6)                (12.4)           (311.3)
Amortization of Deferred Acquisition Costs      259.1                   0.5             257.7                  (0.4)            258.8
Other Expenses                                  297.0                  (3.4)            307.5                  (2.3)            314.9
Total                                         1,534.0                     -           1,533.4                   2.8           1,491.9

Adjusted Operating Income                    $  329.2                  (1.8)         $  335.4                  (2.6)         $  344.5

Operating Ratios (% of Premium Income):
Benefit Ratio                                    53.9  %                                 52.9  %                                 51.3  %

Other Expense Ratio                              17.6  %                                 18.0  %                                 18.7  %

Adjusted Operating Income Ratio                  19.5  %                                 19.6  %                                 20.4  %

Persistency:

Accident, Sickness, and Disability               75.4  %                                 74.3  %                                 73.2  %
Life                                             85.5  %                                 83.7  %                                 83.4  %
Cancer and Critical Illness                      82.4  %                                 81.8  %                                 80.6  %



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Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Premium income was lower compared to 2020 due to lower prior period sales,
partially offset by favorable persistency. Net investment income was higher in
2021 compared to 2020 due to higher miscellaneous investment income and an
increase in the level of invested assets, partially offset by a decline in the
yield on invested assets.

Benefits experience was unfavorable relative to 2020 due primarily to
unfavorable experience in the life product line resulting from the impacts of
COVID-19.

Commissions and the deferral of acquisition costs were lower compared to 2020
due to lower prior period sales. The amortization of deferred acquisition costs
was generally consistent with 2020. The other expense ratio improved relative to
2020 due primarily to a decrease in the allowance for expected credit losses and
our continued focus on expense management and operating efficiencies.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Premium income increased compared to 2019 due to growth in the in-force block
resulting from prior period sales growth and stable persistency. Net investment
income was higher in 2020 compared to 2019 due to higher miscellaneous
investment income and an increase in the level of invested assets, partially
offset by a decline in the yield on invested assets.

Benefits experience was unfavorable relative to 2019, with unfavorable
experience in the life product line, resulting from the impacts of COVID-19,
partially offset by favorable experience in the cancer and critical illness and
accident, sickness, and disability product lines.

Commissions and the deferral of acquisition costs declined relative to 2019 due
to lower sales. The amortization of deferred acquisition costs was consistent
with 2019. The other expense ratio improved relative to 2019 due to a decline in
sales-related expenses and our continued focus on expense management and
operating efficiencies.

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Sales

(in millions of dollars)
                                                           Year Ended December 31
                                         2021        % Change       2020        % Change       2019
Sales by Product
Accident, Sickness, and Disability     $ 297.9         13.9  %    $ 261.5        (26.2) %    $ 354.4
Life                                     111.0         25.0          88.8        (27.6)        122.7
Cancer and Critical Illness               70.9         12.9          62.8        (29.4)         88.9

Total Sales                            $ 479.8         16.1       $ 413.1        (27.0)      $ 566.0

Sales by Market Sector
Commercial
Core Market (< 1,000 employees)        $ 313.2         17.7  %    $ 266.2        (23.0) %    $ 345.7
Large Case Market                         68.5         19.3          57.4        (29.5)         81.4
Subtotal                                 381.7         18.0         323.6        (24.2)        427.1
Public Sector                             98.1          9.6          89.5        (35.6)        138.9
Total Sales                            $ 479.8         16.1       $ 413.1        (27.0)      $ 566.0

Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

During 2021, we have seen an increase in sales for each of our product lines and
market sectors relative to 2020 due to a decline in disruption to our sales
processes caused by COVID-19. The number of new accounts increased 13.0 percent
and average new case size decreased 3.2 percent in 2021 compared to 2020.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

During 2020, the impact of COVID-19 caused higher unemployment levels and
general uncertainty around the financial condition of our customers as well as
disruption in our sales processes. As a result, sales for each of our product
lines and market sectors declined during 2020 compared to 2019. The number of
new accounts and average new case size decreased 27.9 percent and 1.9 percent,
respectively, in 2020 compared to 2019.

Goodwill

We had goodwill of $27.7 million at December 31, 2021, none of which is
currently believed to be at risk for future impairment.

Segment Outlook

We remain committed to providing employees and their families with simple,
modern, and personal benefit solutions. During 2022, we will continue to utilize
our strong distribution system of independent agents, benefit counselors and
broker partnerships. We will also continue to invest in new solutions and
digital capabilities to expand our reach and effectiveness, driving growth and
improving productivity while enhancing the customer experience. In 2022, we will
continue to bring an enhanced engagement and enrollment platform to market
enabling deeper connections with employees through the enrollment process as
well as maintaining stronger relationships throughout the customer lifecycle. We
believe our distribution system, customer service capabilities, digital and
virtual tools, and ability to serve all market sizes position us well for future
growth.

In 2022, we expect positive operating trends with full year premium income to
grow from the prior year, but at a rate that is below pre-pandemic levels. While
we expect our claim experience to improve as impacts from COVID-19 lessen, we
could continue to experience claims volatility, particularly in our life and
disability products. The lower interest rate environment will continue to have
an unfavorable impact on our profit margins, and volatility in miscellaneous
investment income is likely to continue. While we believe our underlying
profitability will remain strong, current economic conditions and increasing
competition in the voluntary workplace market are risks to achievement of our
business plans. We continuously monitor key indicators to assess our risks and
adjust our business plans accordingly.
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Closed Block Segment

The Closed Block segment consists of group and individual long-term care,
individual disability, and other insurance products no longer actively marketed.
We discontinued offering individual long-term care in 2009 and group long-term
care in 2012. Individual disability in this segment generally consists of
policies we sold prior to the mid-1990s and entirely discontinued selling in
2004. As of March 2021, we have ceded a significant portion of this individual
disability business to a third party reinsurer. See "Executive Summary" herein
Item 7 for further discussion. Other insurance products include group pension,
individual life and corporate-owned life insurance, reinsurance pools and
management operations, and other miscellaneous product lines.


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Operating Results

Shown below are financial results and key performance indicators for the Closed
Block segment.

(in millions of dollars, except ratios)

                                                                                  Year Ended December 31
                                                   2021                % Change               2020              % Change              2019
Adjusted Operating Revenue
Premium Income
Long-term Care                               $     704.3                     5.6  %       $   666.9                   2.3  %       $  651.6
Individual Disability                              284.0                   (11.1)             319.6                 (14.6)            374.3
All Other                                            7.5                    (5.1)               7.9                   3.9               7.6
Total Premium Income                               995.8                     0.1              994.4                  (3.8)          1,033.5
Net Investment Income                            1,159.0                   (15.4)           1,370.3                  (2.5)          1,404.9
Other Income                                        65.1                    (2.3)              66.6                  (6.6)             71.3
Total                                            2,219.9                    (8.7)           2,431.3                  (3.1)          2,509.7

Benefits and Expenses
Benefits and Change in Reserves for Future
Benefits                                         1,793.2                   (47.7)           3,426.8                  60.2           2,139.3
Commissions                                         80.5                     2.7               78.4                  (3.2)             81.0
Interest and Debt Expense                              -                  (100.0)               3.1                 (41.5)              5.3
Other Expenses                                     203.5                    28.2              158.7                   8.4             146.4
Total                                            2,077.2                   (43.4)           3,667.0                  54.6           2,372.0

Income (Loss) Before Income Tax and Net
Investment Gains and Losses                        142.7                    (111.5)        (1,235.7)                    N.M.          137.7
Long-term Care Reserve Increase                      2.1                     (98.6)           151.5                     N.M.              -
Individual Disability Reserve Increase               6.4                       N.M.               -                        -              -
Group Pension Reserve Increase                      25.1                       43.4            17.5                     N.M.              -
Impacts from Closed Block Individual
Disability Reinsurance Transaction                 139.3                     (89.3)         1,305.5                     N.M.              -
Amortization of the Cost of Reinsurance             79.1                       N.M.             2.6                     N.M.              -
Adjusted Operating Income                    $     394.7                    63.5          $   241.4                  75.3          $  137.7

Interest Adjusted Loss Ratios:
Long-term Care1                                     77.3    %                                  68.9  %                                 88.1  %

Individual Disability2                              67.9    %                                  85.1  %                                 78.8  %

Operating Ratios (% of Premium Income):
Other Expense Ratio3                                11.9    %                                  13.6  %                                 14.2  %

Income (Loss) Ratio                                 14.3    %                                (124.3) %
Adjusted Operating Income Ratio                     39.6    %                                  24.3  %                                 13.3  %

Persistency:
Long-term Care                                      95.6    %                                  94.8  %                                 95.7  %
Individual Disability                               86.4    %                                  88.0  %                                 88.1  %

1Excludes the $2.1 million reserve increase for the year ended 2021 related to the assumption update that occurred during the third quarter of
2021. Excludes the $151.5 million reserve increase for the year ended 2020 that occurred during the fourth quarter of 2020.

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2Excludes the $133.1 million reserve recognition for the year ended 2021 related to the second phase of the
reinsurance transaction that occurred during the first quarter of 2021. Also excluded from the year ended 2021 is the
$6.4 million reserve increase related to the assumption update that occurred during the third quarter of 2021.
Excludes the $1,284.5 million reserve recognition for the year ended 2020 related to the first phase of the
reinsurance transaction that occurred during the fourth quarter of 2020.
3Excludes $79.1 million of amortization of the cost of reinsurance during the during the year ended 2021 and $6.2
million of transaction costs related to the reinsurance transaction that occurred during the first quarter of 2021.
Excludes $2.6 million of amortization of the cost of reinsurance during the year ended 2020 and $21.0 million of
transactions costs related to the reinsurance transaction that occurred during the fourth quarter of 2020.

N.M. = not a meaningful percentage

Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Premium income for long-term care increased compared to 2020 due to rate
increases, partially offset by policy terminations. We continue to file requests
with various state insurance departments for premium rate increases on certain
of our individual and group long-term care policies which reflect assumptions as
of the date of filings. In states for which a rate increase is submitted and
approved, we routinely provide customers options for coverage changes or other
approaches that might fit their current financial and insurance needs. Premium
income for individual disability decreased compared to 2020 due to policy
terminations and maturities.

Net investment income was lower relative to 2020 primarily due to a decrease in
the level of invested assets supporting individual disability resulting from the
reinsurance transaction and a decline in the yield on invested assets, partially
offset by higher miscellaneous investment income, primarily related to increases
in the NAV on our private equity partnerships.

Other income, which primarily includes the underlying results and associated net
investment income of certain assumed blocks of individual disability reinsured
business, was generally consistent compared to 2020.

The interest adjusted loss ratio for long-term care, excluding the reserve
increases as previously discussed, was less favorable compared to 2020 driven
primarily by lower claimant mortality and higher submitted claims, but continues
to be favorable compared to our long-term expectations. The interest adjusted
loss ratio for individual disability, excluding the reserve increase related to
the assumption update and the reserve recognition impacts from the reinsurance
transaction, was favorable relative to 2020 driven primarily by lower submitted
claims. Also impacting benefits experience for the Closed Block segment in 2021
was the previously discussed group pension reserve increase within our "All
Other" product line. Excluding this group pension reserve increase, benefits
experience for the "All Other" product line was consistent with our
expectations. See "Executive Summary" contained herein in Item 7 and Note 6 of
the "Notes to Consolidated Financial Statements" contained herein in Item 8 for
further discussion on the reserve assumption updates.

We no longer have interest and debt expense due to the December 2020 redemption
of the senior secured notes issued by Northwind Holdings, LLC (Northwind
Holdings).

The other expense ratio, excluding certain transaction costs incurred and the
amortization of cost of reinsurance related to the previously discussed
reinsurance transaction, was lower than 2020 driven by expense allowances
related to the reinsurance transaction and our continued focus on expense
management and operating efficiencies.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Premium income for long-term care was higher compared to 2019, with rate
increases more than offsetting policy terminations. Premium income for
individual disability was lower compared to 2019 due to policy terminations and
maturities as well as a one-time reinsurance cost related to a small block of
policies during the first quarter of 2020.

Net investment income was lower relative to 2019 primarily due to a lower yield
on invested assets, a decrease in the level of invested assets supporting
individual disability resulting from the reinsurance transaction, and
fluctuations in the NAV on our private equity partnerships that reflect the
impact of COVID-19 on economic conditions throughout the year. These impacts
were partially offset by an increase in the level of invested assets supporting
long-term care.  Other income decreased compared to 2020 due to expected
terminations and maturities in certain assumed blocks of individual disability
business.

The interest adjusted loss ratio for long-term care, excluding the previously
discussed reserve increase, was favorable to our expectations driven primarily
by higher claimant mortality and lower submitted claims. The interest adjusted
loss ratio for
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individual disability, excluding the impacts from the reinsurance transaction,
was unfavorable relative to 2019 driven by overall unfavorable claims activity
and the impact of the one-time reinsurance cost during the first quarter of
2020. Also impacting benefits experience for the Closed Block segment was the
previously discussed group pension reserve increase within our "All Other"
product line. Excluding this group pension reserve increase, benefits experience
for the "All Other" product line was consistent with our expectations. See
"Executive Summary" contained herein in this Item 7 and in Note 6 of the "Notes
to Consolidated Financial Statements" contained herein in Item 8 for further
discussion on the reserve assumption updates.

Interest and debt expense was lower than 2019 due to the principal repayments on
the outstanding debt issued by Northwind Holdings. In December 2020, Northwind
Holdings redeemed the remaining $35.0 million of principal on the Northwind
notes, and was released of any contractual collateral requirements.

The other expense ratio, excluding certain costs incurred and the amortization
of cost of reinsurance related to the previously discussed reinsurance
transaction in the fourth quarter of 2020, was lower than 2019 due to our
continued focus on expense management and operating efficiencies, partially
offset by a decline in premium income for individual disability.

Segment Outlook

We will continue to execute on our well-defined strategy of implementing
long-term care premium rate increases, efficient capital management, improved
financial analysis, and operational effectiveness. We will continue to explore
structural options to enhance financial flexibility. Despite continued
anticipated premium rate increases in our long-term care business, we expect
overall premium income and adjusted operating revenue to decline over time as
these closed blocks of business wind down. We will likely experience volatility
in net investment income due to fluctuations of miscellaneous investment income
and the increased allocation towards alternative assets, primarily private
equity partnership investments, in the long-term care product line portfolio. We
record changes in our share of the NAV of the partnerships in net investment
income. We receive financial information related to our investments in
partnerships and generally record investment income on a one-quarter lag in
accordance with our accounting policy. As these net asset values are volatile
and can fluctuate materially with changes in market economic conditions, there
may possibly be significant movements up or down in future periods as conditions
change. We continuously monitor key indicators to assess our risks and adjust
our business plans accordingly.

Profitability of our long-tailed products is affected by claims experience
related to mortality and morbidity, resolutions, investment returns, premium
rate increases, and persistency. We believe that the interest adjusted loss
ratio for long-term care will be relatively flat over the long term, but may
continue to experience quarterly volatility, particularly in the near term as
our claim block matures and as we continue the implementation of premium rate
increases. Specific to our long-term care line of business, which is in loss
recognition and should report levels of benefits plus operating expenses that
equal the gross premium reported, we expect the long term interest adjusted loss
ratio to be in the 85 to 90 percent range with some quarterly volatility. Claim
resolution rates, which measure the resolution of claims from recovery, deaths,
settlements, and benefit expirations, are very sensitive to operational and
external factors and can be volatile. Our claim resolution rate assumption used
in determining reserves is our expectation of the resolution rate we will
experience over the life of the block of business and will vary from actual
experience in any one period. It is possible that variability in any of our
reserve assumptions, including, but not limited to, interest rates, mortality,
morbidity, resolutions, premium rate increases, benefit change elections, and
persistency, could result in a material impact on the adequacy of our reserves,
including adjustments to reserves established under loss recognition.

As a result of the execution of the reinsurance transaction related to our
Closed Block individual disability line of business where we have fully ceded a
significant portion of this business, we expect that the primary impact on
earnings will be the amortization of the cost of reinsurance for that agreement
which we expect will be approximately $70 million for 2022. The cost of
reinsurance will continue to be amortized on a declining trajectory consistent
with the expected run-off pattern of the ceded reserves, which we estimate to be
approximately 25 years. Due to the relatively small amount of business that has
been retained, we expect that the interest adjusted loss ratio will be more
volatile from period to period and we expect minimal earnings related to the
retained business.

In consideration of the COVID-19 pandemic and related impacts, we would expect
our Closed Block segment earnings to return to pre-pandemic levels as the impact
of COVID-19 lessens, but we could temporarily experience greater than normal
volatility across multiple risk factors. Specific to our long-term care line of
business, we expect that we may experience additional volatility as it relates
to mortality, incidence, and interest rates.
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Corporate Segment

The Corporate segment includes investment income on corporate assets not
specifically allocated to a line of business, interest expense on corporate debt
other than non-recourse debt, and certain other corporate income and expenses
not allocated to a line of business.

Operating Results
(in millions of dollars)
                                                                               Year Ended December 31
                                                2021              % Change              2020              % Change              2019
Adjusted Operating Revenue
Net Investment Income                        $   27.9                 184.7  %       $    9.8                 (52.2) %       $   20.5
Other Income                                      6.2                     N.M.            1.1                 (64.5)              3.1
Total                                            34.1                     N.M.           10.9                 (53.8)             23.6

Interest, Debt, and Other Expenses              305.3                  23.3             247.7                   3.4             239.5

Loss Before Income Tax and Net Investment
Gains and Losses                               (271.2)                  (14.5)         (236.8)                   (9.7)         (215.9)
Impairment Loss on Internal-Use Software         12.1                     N.M.              -                        -              -
Cost Related to Early Retirement of Debt         67.3                     N.M.              -                     N.M.           27.3
Impairment Loss on ROU Asset                     13.9                      9.4           12.7                     N.M.              -
Cost Related to Organizational Design Update        -                     N.M.           23.3                     N.M.              -
Adjusted Operating Loss                      $ (177.9)                    11.4       $ (200.8)                   (6.5)       $ (188.6)

N.M. = not a meaningful percentage

Year Ended December 31, 2021 Compared with Year Ended December 31, 2020

Adjusted operating loss, which excludes the items listed above, decreased in
2021 relative to 2020, due primarily to higher net investment income, which
resulted from an increase in the yield on invested assets.

Year Ended December 31, 2020 Compared with Year Ended December 31, 2019

Adjusted operating loss, which excludes the items listed above, increased in
2020 relative to 2019, due primarily to lower net investment income, which
resulted from a decrease in the yield on invested assets. Interest, debt, and
other expenses in 2020 were generally consistent with 2019 with higher interest
expense resulting from a higher level of outstanding debt, mostly offset by
lower pension costs in 2020.

See "Executive Summary" contained herein in this Item 7 and in Notes 8, 13, and
15 of the "Notes to Consolidated Financial Statements" contained herein in Item
8 for further discussion on the impairment loss on internal-use software, costs
related to the early retirement of debt, the ROU asset impairments, and the
costs related to the organizational design update.

Segment Outlook

We expect to continue to generate excess capital on an annual basis through the
statutory earnings in our insurance subsidiaries and believe we are well
positioned with flexibility to preserve our capital strength while also
returning capital to our shareholders. We may experience volatility in net
investment income based on both the composition and level of invested assets
that we allocate to our products from period to period.

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Investments

Overview

Our investment portfolio is well diversified by type of investment and industry
sector. We have established an investment strategy that we believe will provide
for adequate cash flows from operations and allow us to hold our securities
through periods where significant decreases in fair value occur. We believe our
emphasis on risk management in our investment portfolio has positioned us well
and generally reduced the volatility in our results.

We have a formal investment policy that includes overall quality and
diversification objectives and establishes limits by asset class, investment
rating, and single issuer. The majority of our investments are in
investment-grade publicly traded securities. This ensures the desired liquidity
and preserves the capital value of our portfolios, although due to the long-term
nature of our insurance liabilities we are also able to invest in less liquid
investments to obtain superior returns within the limits of our investment
policy. Our asset mix guidelines and limits are established by us, reviewed by
the risk and finance committee of Unum Group's board of directors, and approved
by the boards of directors of our insurance subsidiaries. We review our policies
and guidelines annually, or more frequently if deemed necessary, and recommend
adjustments as appropriate.

See "Critical Accounting Estimates" contained herein in this Item 7 for further
discussion of our valuation of investments.

Closed Block Individual Disability Reinsurance Transaction

As part of the second phase of the Closed Block individual disability
reinsurance transaction entered into in March 2021 with Commonwealth, we
transferred fixed maturity securities of $226.8 million on an amortized cost
basis and $293.7 million on a fair value basis, and recorded a total realized
investment gain from the transfer of these securities, including a related net
gain from cash flow hedges, of $67.6 million. In 2020, as part of the first
phase of the Closed Block individual disability reinsurance transaction, we
transferred fixed maturity securities of $4,686.8 million on an amortized cost
basis and $5,958.4 million on a fair value basis, and we recorded a total
realized investment gain from the transfer of these securities, including a
related net gain from cash flow hedges of $1,302.3 million. Although we
transferred a significant portion of our fixed maturity security portfolio as
part of this transaction, the overall credit profile of our remaining portfolio
has not changed. See "Executive Summary" contained herein in this Item 7 for
further information on the reinsurance transaction.

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Fixed Maturity Securities

The fair values and associated unrealized gains and losses of our fixed maturity
securities portfolio, by industry classification, are as follows:

             Fixed Maturity Securities - By Industry Classification

                            As of December 31, 2021
(in millions of dollars)
                                                                                Fair Value of                             Fair Value of
                                                                                    Fixed                                     Fixed
                                                                                  Maturity                                  Maturity
                                                                                 Securities                                Securities
                                                                                 with Gross                                with Gross             Gross
                                                           Net Unrealized        Unrealized              Gross             Unrealized           Unrealized
         Classification                 Fair Value              Gain                Loss            Unrealized Loss           Gain                 Gain
Basic Industry                         $  3,138.8          $     356.6          $    249.1          $        4.8          $  2,889.7          $     361.4
Capital Goods                             3,913.6                531.7               263.4                   7.1             3,650.2                538.8
Communications                            2,765.0                442.2               187.1                   4.7             2,577.9                446.9
Consumer Cyclical                         1,584.0                180.6               160.0                   4.7             1,424.0                185.3
Consumer Non-Cyclical                     7,062.7              1,048.0               418.9                  13.9             6,643.8              1,061.9
Energy                                    3,580.6                562.3               135.2                   4.8             3,445.4                567.1
Financial Institutions                    3,899.2                361.9               589.3                  14.3             3,309.9                376.2
Mortgage/Asset-Backed                       609.7                 50.4                29.3                     -               580.4                 50.4
Sovereigns                                1,146.6                194.6               245.1                  20.7               901.5                215.3
Technology                                1,873.6                133.2               173.6                   4.6             1,700.0                137.8
Transportation                            2,038.6                240.9               169.1                   3.7             1,869.5                244.6
U.S. Government Agencies and
Municipalities                            5,307.6                697.3               336.1                   7.0             4,971.5                704.3
Public Utilities                          6,416.0              1,149.6               280.9                   9.8             6,135.1              1,159.4
Total                                  $ 43,336.0          $   5,949.3          $  3,237.1          $      100.1          $ 40,098.9          $   6,049.4


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The following two tables show the length of time our investment-grade and
below-investment-grade fixed maturity securities portfolios had been in a gross
unrealized loss position as of December 31, 2021 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, 2021. The increase in the unrealized loss on
investment-grade fixed maturity securities during 2021 was due primarily to an
increase in U.S. Treasury rates, while the decrease in the unrealized loss on
below-investment-grade fixed maturity securities during 2021 was due primarily
to a decrease in credit spreads, partially offset by the increase in U.S.
Treasury rates.


         Unrealized Loss on Investment-Grade Fixed Maturity Securities
                   Length of Time in Unrealized Loss Position

(in millions of dollars)

                                                                      2021                                               2020
                                      December 31          September 30           June 30          March 31           December 31
Fair Value < 100% >= 70% of
Amortized Cost

<= 90 days                          $       29.9          $       42.8          $    6.1          $  122.1          $        3.8
> 90 <= 180 days                            29.4                   0.2              30.2               6.1                   3.9
> 180 <= 270 days                            0.7                  26.3               3.0              10.4                   1.5
> 270 days <= 1 year                        21.8                   1.4               3.0               2.1                   6.4
> 1 year <= 2 years                          5.1                   3.9               2.2               6.9                   0.1
> 2 years <= 3 years                           -                     -                 -               2.3                   2.3

Sub-total                                   86.9                  74.6              44.5             149.9                  18.0

Fair Value < 70% >= 40% of Amortized Cost

> 270 days <= 1 year                         1.5                     -                 -                 -                     -

Total                               $       88.4          $       74.6          $   44.5          $  149.9          $       18.0


















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      Unrealized Loss on Below-Investment-Grade Fixed Maturity Securities
                   Length of Time in Unrealized Loss Position

(in millions of dollars)

                                                                       2021                                               2020
                                      December 31          September 30           June 30           March 31           December 31
Fair Value < 100% >= 70% of
Amortized Cost

<= 90 days                          $        0.8          $        0.4          $    0.3          $     3.9          $        4.0
> 90 <= 180 days                             0.3                     -               2.4                3.8                     -
> 180 <= 270 days                              -                   2.0               2.9                  -                   1.6
> 270 days <= 1 year                         2.2                   2.1                 -                  -                   7.8
> 1 year <= 2 years                          2.5                   2.6               2.8                5.8                   1.9
> 2 years <= 3 years                         0.3                   0.2                 -                0.4                   5.0
> 3 years                                    5.6                   4.8               7.2                8.5                   7.4
Sub-total                                   11.7                  12.1              15.6               22.4                  27.7

Fair Value < 70% >= 40% of
Amortized Cost

> 1 year <= 2 years                            -                     -                 -                5.4                  10.2

Total                               $       11.7          $       12.1          $   15.6          $    27.8          $       37.9



At December 31, 2021, we held one investment-grade fixed maturity security with
a gross unrealized loss greater than $10.0 million. The security was a foreign
government debt obligation and had a fair value of $172.0 million and a gross
unrealized loss of $14.6 million.

We had no individual net investment losses of $10.0 million or greater from
credit losses or sales of fixed maturity securities during 2021.

During the first quarter of 2020, we recognized the following credit losses
greater than $10 million:

•$20.8 million on fixed maturity securities issued by an oil and gas producer.
The profitability of the company was impacted by the decline in oil prices
which, given the environment at the time, may have made near term debt
maturities difficult to refinance. We changed our intent to hold this security
in the second quarter of 2020 and recognized a $1.4 million loss on the sale of
the security in addition to the credit loss previously recorded.

•$17.1 million on fixed maturity securities issued by an oil and gas producer.
The profitability of the company was impacted by the decline in oil prices and
the company had a high level of debt. The company filed for bankruptcy as
expected in early April 2020. We changed our intent to hold this security in the
third quarter of 2020 and recognized a $1.0 million loss on the sale of the
security in addition to the credit loss previously recorded.

•$10.2 million on fixed maturity securities issued by a paper company whose
sales of lumber and other products were impacted by the slowdown in the economy.
As a result of an improvement in lumber and other products, during the fourth
quarter of 2020, we reversed the remainder of the allowance for credit losses
that we had recognized in the previous quarters of 2020.

During the remainder of 2020, we did not experience any credit losses exceeding
$10 million. We had no individual net investment losses of $10.0 million or
greater from sales of fixed maturity securities in 2020. We had one net
investment loss of $20.8 million from impairments and one individual net
investment loss of $15.6 million from the sale of fixed maturity securities
during 2019.

As of December 31, 2021, the amortized cost net of allowance for credit losses
and fair value of our below-investment-grade fixed maturity securities was
$2,754.2 million and $2,977.0 million, respectively, and our
below-investment-grade fixed maturity securities as a percentage of our total
investment portfolio decreased from 6.7 percent at December 31, 2020 to 5.8
percent at
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December 31, 2021 on a fair value basis. Below-investment-grade securities are
inherently riskier than investment-grade securities since the risk of default by
the issuer, by definition and as exhibited by bond rating, is higher. Also, the
secondary market for certain below-investment-grade issues can be highly
illiquid. Additional downgrades may occur, but we do not anticipate any
liquidity problems resulting from our investments in below-investment-grade
securities, nor do we expect these investments to adversely affect our ability
to hold our other investments to maturity.

Fixed Maturity Securities - Foreign Exposure

Our investments in issuers in foreign countries are chosen for specific
portfolio management purposes, including asset and liability management and
portfolio diversification across geographic lines and sectors to minimize
non-market risks. In our approach to investing in fixed maturity securities,
specific investments within approved countries and industry sectors are
evaluated for their market position and specific strengths and potential
weaknesses. For each security, we consider the political, legal, and financial
environment of the sovereign entity in which an issuer is domiciled and
operates. The country of domicile is based on consideration of the issuer's
headquarters, in addition to location of the assets and the country in which the
majority of sales and earnings are derived. We do not have exposure to foreign
currency risk, as the cash flows from these investments are either denominated
in currencies or hedged into currencies to match the related liabilities. We
continually evaluate our foreign investment risk exposure.

Mortgage Loans

The carrying value of our mortgage loan portfolio was $2,560.4 million and
$2,432.1 million at December 31, 2021 and 2020, respectively. Our investments in
mortgage loans are carried at amortized cost less an allowance for credit losses
which was $8.3 million and $13.1 million at December 31, 2021 and 2020,
respectively. Our mortgage loan portfolio is comprised entirely of commercial
mortgage loans. Our mortgage loan portfolio is well diversified geographically
and among property types. Due to conservative underwriting, the incidence of
problem mortgage loans and foreclosure activity continues to be low. We held no
impaired mortgage loans at December 31, 2021 or 2020. See Notes 1 and 3 in the
"Notes to Consolidated Financial Statements" contained herein in Item 8 for
further discussion of our mortgage loan portfolio and the allowance for expected
credit losses.

Private Equity Partnerships

The carrying value of our investments in private equity partnerships was $978.6
million and $747.5 million at December 31, 2021 and 2020, respectively. These
partnerships are passive in nature and represent funds that are primarily
invested in private credit, private equity, and real assets. The carrying value
of the partnerships is based on our share of the partnership's NAV and changes
in the carrying value are recorded as a component of net investment income. We
receive financial information related to our investments in partnerships and
generally record investment income on a one-quarter lag in accordance with our
accounting policy. We recorded net investment income totaling $165.4 million,
$19.8 million, and $31.7 million for the years ended December 31, 2021, 2020,
and 2019, respectively. The majority of our investments in partnerships are not
redeemable. Distributions received from the funds arise from income generated by
the underlying investments as well as the liquidation of the underlying
investments. There is generally not a public market for these investments. We
had $753.2 million of commitments for additional investments in the partnerships
at December 31, 2021 which may or may not be funded. See Note 2 in the "Notes to
Consolidated Financial Statements" contained herein in Item 8 for further
discussion of our private equity partnerships.

Derivative Financial Instruments

We use derivative financial instruments primarily to manage reinvestment,
duration, foreign currency, and credit risks. Historically, we have utilized
current and forward-starting interest rate swaps, options on forward-starting
interest rate swaps and U.S. Treasury rates, current and forward-starting
currency swaps, forward treasury locks, currency forward contracts, forward
contracts on specific fixed income securities, and credit default swaps. Credit
exposure on derivatives is limited to the value of those contracts in a net gain
position, including accrued interest receivable less collateral held. Our credit
exposure on derivatives was $1.3 million at December 31, 2021. We held $32.0
million of cash collateral from our counterparties at December 31, 2021. The
carrying value of fixed maturity securities posted as collateral to our
counterparties was $27.6 million at December 31, 2021. We believe that our
credit risk is mitigated by our use of multiple counterparties, all of which
have an investment-grade credit rating, and by our use of
cross-collateralization agreements.
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Other

Our exposure to non-current investments, defined as foreclosed real estate and
invested assets which are delinquent as to interest and/or principal payments,
totaled $19.8 million and $20.8 million on a fair value basis at December 31,
2021 and 2020, respectively.

See Notes 3 and 4 of the "Notes to Consolidated Financial Statements" contained
herein in Item 8 for further discussion of our investments and our derivative
financial instruments.

Liquidity and Capital Resources

Overview

Our liquidity requirements are met primarily by cash flows provided from
operations, principally in our insurance subsidiaries. Premium and investment
income, as well as maturities and sales of invested assets, provide the primary
sources of cash. Debt and/or securities offerings provide additional sources of
liquidity. Cash is applied to the payment of policy benefits, costs of acquiring
new business (principally commissions), operating expenses, and taxes, as well
as purchases of new investments.

We have established an investment strategy that we believe will provide for
adequate cash flows from operations. We attempt to match our asset cash flows
and durations with expected liability cash flows and durations to meet the
funding requirements of our business. However, deterioration in the credit
market may delay our ability to sell our positions in certain of our fixed
maturity securities in a timely manner and adversely impact the price we receive
for such securities, which may negatively impact our cash flows. Furthermore, if
we experience defaults on securities held in the investment portfolios of our
insurance subsidiaries, this will negatively impact statutory capital, which
could reduce our insurance subsidiaries' capacity to pay dividends to our
holding companies. A reduction in dividends to our holding companies could force
us to seek external financing to avoid impairing our ability to pay dividends to
our stockholders or meet our debt and other payment obligations.

Our policy benefits are primarily in the form of claim payments, and we have
minimal exposure to the policy withdrawal risk associated with deposit products
such as individual life policies or annuities. A decrease in demand for our
insurance products or an increase in the incidence of new claims or the duration
of existing claims could negatively impact our cash flows from operations.
However, our historical pattern of benefits paid to revenues is generally
consistent, even during cycles of economic downturns, which serves to minimize
liquidity risk.

The liquidity requirements of the holding company Unum Group include common
stock dividends, interest and debt service, and ongoing investments in our
businesses.  Unum Group's liquidity requirements are met by assets held by Unum
Group and our intermediate holding companies, dividends from primarily our
insurance subsidiaries, and issuance of common stock, debt, or other capital
securities and borrowings from our existing credit facility, as needed.  As
of December 31, 2021, Unum Group and our intermediate holding companies had
available holding company liquidity of $1,515 million that was held primarily in
bank deposits, commercial paper, money market funds, corporate bonds, and asset
backed securities. No significant restrictions exist on our ability to use or
access funds in any of our U.S. or foreign intermediate holding companies.
Dividends repatriated from our foreign subsidiaries are eligible for 100 percent
exemption from U.S. income tax but may be subject to withholding tax and/or tax
on foreign currency gain or loss.

As part of our capital deployment strategy, we may repurchase shares of Unum
Group's common stock, as authorized by our board of directors. During the first
nine months of 2021, we did not have an open share repurchase program and did
not repurchase any shares. In October 2021, our board of directors authorized
the repurchase of up to $250.0 million of Unum Group's outstanding common stock
through December 2022, with the timing and amount of repurchase activity to be
based on market conditions and other considerations, including the level of
available cash, alternative uses for cash, and our stock price. In November
2021, we entered into and settled an accelerated stock repurchase agreement with
a financial counterparty to repurchase $50.0 million of Unum Group's common
stock in aggregate. As part of this transaction, we paid $50.0 million to the
financial counterparty and received 1.9 million shares of our common stock. The
dollar value of shares remaining under the current repurchase program was
approximately $200 million at December 31, 2021. See Note 10 of the "Notes to
Consolidated Financial Statements" contained herein in Item 8.

Liquidity and Capital Resource Considerations - COVID-19

We have strengthened our liquidity position through actions such as maintaining
a high level of short-term investments and a high level of collateral from
certain of our U.S. insurance subsidiaries posted with regional FHLBs. In
November 2021, we

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entered into a 20-year facility agreement with a Delaware trust that gives us
the right to issue and to sell to the trust, up to $400.0 million of 4.046%
senior notes in exchange for a corresponding amount of U.S. Treasury securities
held by the trust. We believe we have the appropriate liquidity and access to
capital to avoid significant disruption to our operations. We have not yet
experienced a significant impact to our liquidity as a result of the collection
of premiums and submitted claims activity; however, we continually monitor the
development of these items.

As of December 31, 2021, we have borrowed $160.9 million of funds through our
memberships with the regional FHLBs. Similar to our previous advances, these
funds are used for the purpose of investing in either short-term investments or
fixed maturity securities and have additional borrowing capacity of
approximately $992 million that can be utilized for liquidity if the need
arises. Additionally, we have access to an unsecured revolving credit facility
that allow us to borrow up to a total of $500 million. There are currently no
outstanding borrowings on this facility, but we remain in compliance with
required covenants should we choose to borrow in the future. We have no
significant upcoming debt maturities until 2024. We continue to meet the
financial covenants contained in our current debt agreements and credit
facilities, and we expect that we will continue to meet those covenants in
subsequent periods.

See "Debt, Credit Facilities and Other Sources of Liquidity" and "Transfers of
Financial Assets" for further discussion of our debt arrangements, credit
facilities, facility agreement for contingent debt issuance, and of our FHLB
arrangements contained herein in this Item 7. For further discussion of the key
considerations regarding the impacts of COVID-19 see "Executive Summary" herein
in this Item 7.

Closed Block Individual Disability Reinsurance Transaction

In December 2020, we completed the first phase of a reinsurance transaction,
pursuant to which Provident, Paul Revere, and Unum America, wholly-owned
domestic insurance subsidiaries of Unum Group and collectively referred to as
"the ceding companies", each entered into separate reinsurance agreements with
Commonwealth to reinsure, on a coinsurance basis effective as of July 1, 2020,
approximately 75 percent of the Closed Block individual disability insurance
business, primarily direct business written by the ceding companies. In March
2021, we completed the second phase of the reinsurance transaction, pursuant to
which the ceding companies and Commonwealth amended and restated their
respective reinsurance agreements to reinsure on a coinsurance and modified
coinsurance basis effective as of January 1, 2021, a substantial portion of the
remaining Closed Block individual disability business that was not ceded in
December 2020, primarily business previously assumed by the ceding companies.
Commonwealth established and will maintain collateralized trust accounts for the
benefit of the ceding companies to secure its obligations under the reinsurance
agreements.

In connection with the first phase of the reinsurance transaction which occurred
in December 2020, the ceding companies paid a total ceding commission to
Commonwealth of $437.7 million. In connection with the second phase of the
reinsurance transaction which occurred in March 2021, Commonwealth paid a ceding
commission to the ceding companies of $18.2 million. The ceding companies
transferred assets, which consisted primarily of cash and fixed maturity
securities, of $6,669.8 million and $767.0 million for the first phase in
December 2020 and the second phase in March 2021, respectively. We released
approximately $400 million of capital during the fourth quarter of 2020 as a
result of the closing of the first phase of the transaction. We released
approximately $200 million of capital during the first quarter of 2021 as a
result of the closing of the second phase of the transaction.

See "Reinsurance" contained herein in Item 1; "Segment Results" and "Executive
Summary" contained herein in Item 7, and Notes 12 and 16 of the "Notes to
Consolidated Financial Statements" contained herein in Item 8 for further
discussion on the impacts related to this reinsurance transaction.

Cash Available from Subsidiaries

Unum Group and certain of its intermediate holding company subsidiaries depend
on payments from subsidiaries to pay dividends to stockholders, to pay debt
obligations, and/or to pay expenses. These payments by our insurance and
non-insurance subsidiaries may take the form of dividends, operating and
investment management fees, and/or interest payments on loans from the parent to
a subsidiary.

Restrictions under applicable state insurance laws limit the amount of dividends
that can be paid to a parent company from its insurance subsidiaries in any
12-month period without prior approval by regulatory authorities. For life
insurance companies domiciled in the U.S., that limitation generally equals,
depending on the state of domicile, either ten percent of an insurer's statutory
surplus with respect to policyholders as of the preceding year end or the
statutory net gain from operations, excluding
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net realized capital gains and losses, of the preceding year. The payment of
dividends to a parent company from a life insurance subsidiary is generally
further limited to the amount of unassigned funds.

Unum America cedes blocks of business to Fairwind Insurance Company (Fairwind),
which is an affiliated captive reinsurance subsidiary domiciled in the United
States. The ability of Fairwind to pay dividends to Unum Group will depend on
its satisfaction of applicable regulatory requirements and on the performance of
the business reinsured by Fairwind. Fairwind did not pay dividends in 2021 nor
do we anticipate that Fairwind will pay dividends in 2022. Unum Group made
$285.0 million in capital contributions to Fairwind during 2021 in order to
ensure Fairwind has an appropriate level of capital supporting the business
assumed from Unum America, including establishing the premium deficiency reserve
resulting from the agreement between Unum America and the Maine Bureau of
Insurance (MBOI).

In connection with a financial examination of Unum America, which closed at the
end of the second quarter of 2020, the MBOI concluded that Unum America's
long-term care statutory reserves are deficient by $2.1 billion as of December
31, 2018, the financial statement date of the examination period. The amount
reserves are deficient by may increase or decrease over time based on changes in
assumed reinvestment rates, policyholder inventories, rate increase activity,
and the underlying growth in the locked in statutory reserve basis as well as
updates to other long term actuarial assumptions. The MBOI granted permission to
Unum America on May 1, 2020, to phase in the additional statutory reserves over
seven years beginning with year-end 2020 and ending with year-end 2026. During
the fourth quarter of 2020, reserves were deficient by approximately $2.3
billion, prior to the 2020 phase-in adjustment. The increase in the reserve
deficiency from the original $2.1 billion as of December 31, 2018 was primarily
driven by changes in the assumed reinvestment rate. The 2020 phase-in amount was
recorded in the fourth quarter of 2020 and was approximately $229 million,
resulting in $2.1 billion remaining to be phased in as of December 31, 2020.
During the fourth quarter of 2021, reserves were deficient by approximately $2.7
billion, prior to the 2021 phase in adjustment. The increase in the reserve
deficiency from the balance as of December 31, 2020 was primarily driven by
changes in the assumed reinvestment rate. The 2021 phase in amount was recorded
in the fourth quarter of 2021 and was approximately $438 million, resulting in
approximately $2.3 billion remaining to be phased in as of December 31, 2021.
The phase in amounts for both 2020 and 2021 were funded using cash flows from
operations and capital contributions from Unum Group. This strengthening is
incorporated by using explicitly agreed upon margins into our existing
assumptions for annual statutory reserve adequacy testing. These actions add
margin to Unum America's best estimate assumptions. Our long-term care reserves
and financial results reported under generally accepted accounting principles
are not affected by the MBOI's examination conclusion. We plan to fund the
additional statutory reserves with expected cash flows and capital contributions
from Unum Group.

The ability of Unum Group and certain of its intermediate holding company
subsidiaries to continue to receive dividends from their insurance subsidiaries
also depends on additional factors such as RBC ratios and capital adequacy
and/or solvency requirements, funding growth objectives at an affiliate level,
and maintaining appropriate capital adequacy ratios to support desired ratings.
The RBC ratios for our U.S. insurance subsidiaries at December 31, 2021 are in
line with our expectations and are significantly above the level that would
require state regulatory action.

Unum Group and/or certain of its intermediate holding company subsidiaries may
also receive dividends from our U.K. subsidiaries, the payment of which may be
subject to applicable insurance company regulations and capital guidance in the
U.K. Unum Limited is subject to the requirements of Solvency II, an European
Union (EU) directive that is part of retained UK law pursuant to the European
Union (Withdrawal) Act 2018, which prescribes capital requirements and risk
management standards for the European insurance industry. Our U.K. holding
company is also subject to the Solvency II requirements relevant to insurance
holding companies, while its subsidiaries (the Unum UK Solvency II Group), which
includes Unum Limited, are subject to group supervision under Solvency II. The
Unum UK Solvency II Group received approval from the U.K. Prudential Regulation
Authority to use its own internal model for calculating regulatory capital and
also received approval for certain associated regulatory permissions including
transitional relief as the Solvency II capital regime continues to be
implemented. In connection with the recent exit from the EU, the U.K. government
is reviewing the regulatory framework of financial services companies which may
result in changes to U.K. regulatory capital or U.K. tax regulations. Recent
economic conditions have caused volatility in our solvency ratios used to
monitor capital adequacy.

The payment of dividends to the parent company from our subsidiaries also
requires the approval of the individual subsidiary's board of directors.

The amount available during 2021 for the payment of ordinary dividends from Unum
Group's traditional U.S. insurance subsidiaries, which excludes Northwind Re and
Fairwind, was approximately $947 million. During 2021, $583.0 million was
declared and paid in cash, $8.3 million was declared and paid in fixed maturity
securities, and $197.9 million was declared and paid in stock, of which $165.0
million was considered an extraordinary dividend, of one of Unum Group's
traditional U.S.
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insurance subsidiaries. Also during 2021, $25.7 million and $5.1 million in cash
and fixed maturity securities, respectively, were paid to Unum Group from one of
our traditional U.S. insurance companies as a return of capital. The amount
available during 2021 from Unum Limited was approximately £170 million, of which
none were declared and paid to Unum Group. As a result of the recapture of the
Northwind Re reinsurance agreements and Northwind Re's status as a dormant
captive insurance company, Northwind Re paid dividends of $916.4 million,
comprised of cash of $210.2 million and fixed maturity securities of $706.2
million, to Northwind Holdings during 2021. Northwind Holdings then paid
dividends of $917.0 million, comprised of cash of $210.8 million and fixed
maturity securities of $706.2 million, to Unum Group.

During 2022, we intend to maintain a level of capital in our insurance
subsidiaries above the applicable capital adequacy requirements and minimum
solvency margins. As a result of our consideration of overall capitalization
needs, we may not utilize the entire amount of dividends available in 2022,
which are based on applicable restrictions under current law. Approximately $861
million is available, without prior approval by regulatory authorities, during
2022 for the payment of dividends from Unum Group's traditional U.S. insurance
subsidiaries, which excludes our captive reinsurers. Approximately £130 million
is considered distributable from Unum Limited during 2022, subject to local
solvency standards and regulatory approval.

Insurance regulatory restrictions do not limit the amount of dividends available
for distribution from non-insurance subsidiaries except where the non-insurance
subsidiaries are held directly or indirectly by an insurance subsidiary and only
indirectly by Unum Group, which does not apply to our current entity structure.

Funding for Employee Benefit Plans

We made contributions of $65.7 million and £3.6 million to our U.S. and U.K.
defined contribution plans, respectively, in 2021 and expect to make
contributions of approximately $75 million and £4.2 million during 2022. We made
no contributions to our U.S. and U.K. qualified defined benefit pension plans
during 2021. We do not expect to make any contributions to either plan during
2022. We have met all minimum pension funding requirements set forth by the
Employee Retirement Income Security Act. We have estimated our future funding
requirements under the Pension Protection Act of 2006 and under applicable U.K.
law and do not believe that any future funding requirements will cause a
material adverse effect on our liquidity. See Note 9 of the "Notes to
Consolidated Financial Statements" contained herein in Item 8 for further
discussion of our employee benefit plans.

Debt, Credit Facilities and Other Sources of Liquidity

There are no significant financial covenants associated with any of our
outstanding debt obligations. We continually monitor our debt covenants to
ensure we remain in compliance. We have not observed any current trends that
would cause a breach of any debt covenants.

Maturities, Purchases, and Retirement of Debt

In June 2021, we purchased and retired $500.0 million aggregate principal amount
of our 4.500% senior notes due 2025, for which we incurred costs of $67.3
million related to the early retirement of debt.

Northwind Holdings made periodic principal payments on the Northwind notes of
$45.0 million in 2020 and $60.0 million in 2019. In December 2020, Northwind
Holdings redeemed the remaining $35.0 million of principal on the Northwind
notes, and was released of any contractual collateral requirements.

In September 2020, our $400.0 million 5.625% senior unsecured notes matured.

During 2019 we purchased and retired (i) $22.8 million aggregate liquidation
amount of our 7.405% capital securities due 2038; (ii) $30.3 million aggregate
principal amount of our 7.190% medium-term notes due 2028; (iii) $30.0 million
aggregate principal amount of our 7.250% senior notes due 2028; and (iv) $350.0
million aggregate principal amount of our 3.000% senior notes due 2021.

Issuance of Debt

In June 2021, we issued $600.0 million of 4.125% senior notes due 2051. The
notes are callable at or above par and rank equally in the right of payment with
all of our other unsecured and unsubordinated debt.

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In May 2020, we issued $500.0 million of 4.500% senior notes due 2025, which
were subsequently purchased and retired in June 2021 as previously discussed.

In September 2019, we issued $450.0 million of 4.500% senior notes due 2049. The
notes are callable at or above par and rank equally in the right of payment with
all of our other unsecured and unsubordinated debt.

In June 2019, we issued $400.0 million of 4.000% senior notes due 2029. The
notes are callable at or above par and rank equally in the right of payment with
all of our other unsecured and unsubordinated debt.

Credit Facilities

We have a credit facility that is under a five-year agreement and is effective
through April 2024. The terms of this agreement provide for a borrowing capacity
of $500.0 million with an option to be increased up to $700.0 million. We may
also request, on up to two occasions, that the lenders' commitment termination
dates be extended by one year. The credit facility provides for the issuance of
letters of credit subject to certain terms and limitations. At December 31,
2021, letters of credit totaling $0.4 million had been issued from this credit
facility, but there were no borrowed amounts outstanding. Borrowings under the
credit facility are for general corporate uses and are subject to financial
covenants, negative covenants, and events of default that are customary.

In the third quarter of 2021, we terminated our three-year, $100.0 million
unsecured revolving credit facility, which was originally set to expire in April
2022. There were no letters of credit issued from the credit facility and there
were no borrowed amounts outstanding at the time of termination. Also in the
third quarter of 2021, we entered into a new five-year, £75 million unsecured
standby letter of credit facility with the same syndicate of lenders, pursuant
to which a syndicated letter of credit was issued in favor of Unum Limited (as
beneficiary), our U.K. insurance subsidiary, and is available for drawings up to
£75 million until its scheduled expiration in July 2026. No amounts have been
drawn on the letter of credit. If drawings are made in the future, we may elect
to borrow such amounts from the lenders pursuant to term loans made under the
credit facility.

The two primary financial covenants for the credit facilities include
limitations based on our leverage ratio and consolidated net worth. We are also
subject to covenants that limit subsidiary indebtedness. The credit facilities
provide for borrowings at an interest rate based either on the prime rate or
federal funds rate.

See Note 8 of the "Notes to Consolidated Financial Statements" contained herein
in Item 8 for additional information on our debt.

Facility Agreement for Contingent Issuance of Senior Notes

During November 2021, we entered into a 20-year facility agreement with a
Delaware trust that gives us the right to issue and to sell to the trust, on one
or more occasions, up to $400.0 million of 4.046% senior notes in exchange for a
corresponding amount of U.S. Treasury securities held by the trust. These senior
notes will not be issued unless and until the issuance right is exercised. The
exercise of the issuance right triggers recognition of the senior notes on our
consolidated balance sheets. We may also direct the trust to grant the right to
exercise the issuance right with respect to all or a designated amount of the
senior notes to one or more assignees (who are our consolidated subsidiaries or
persons to whom we have an obligation). We pay a semi-annual facility fee to the
trust at a rate of 2.225% per year on the unexercised portion of the maximum
amount of senior notes that we could issue and sell to the trust and we
reimburse the trust for its expenses. For more information, see Note 8 of the
"Notes to Consolidated Financial Statements" contained herein in Item 8 for
further discussion of this agreement.

Shelf Registration

We filed a shelf registration with the Securities and Exchange Commission in
2020 to issue various types of securities, including common stock, preferred
stock, debt securities, depository shares, stock purchase contracts, units and
warrants. The shelf registration enables us to raise funds from the offering of
any securities covered by the shelf registration as well as any combination
thereof, subject to market conditions and our capital needs.

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Cash Requirements

As previously discussed, cash is applied primarily to the payment of policy
benefits, costs of acquiring new business (principally commissions), operating
expenses, and taxes, as well as purchases of investments. We have established an
investment strategy that we believe will provide for adequate cash flows from
operations to meet cash payment requirements. Summarized below are our estimated
material cash requirements, both in the short-term (within 12 months) and the
long-term (beyond 12 months) resulting from contractual obligations as of
December 31, 2021:

•Policyholder liabilities totaled $47,394.1 million, of which $4,885.7 million
is estimated to be paid in 2022. We also maintain reinsurance agreements for
which the recoverable under those agreements totaled $14,165.3 million of which
$1,228.3 million is estimated to offset related policyholder liability payments
in 2022. Policyholder liabilities and the related reinsurance recoverable
represent the projected payout of the current in-force policyholder liabilities
and the expected cash inflows from reinsurers for liabilities ceded and
therefore incorporate uncertainties as to the timing and amount of claim
payments. We utilize extensive liability modeling to project future cash flows
from the in force business. The primary assumptions used to project future cash
flows are claim incidence rates for mortality and morbidity, claim resolution
rates, persistency rates, and interest rates. These cash flows are discounted to
determine the current value of the projected claim payments. The timing and
amount of payments on policyholder liabilities may vary significantly over time.
•Payments related to our long-term debt and our credit and facility agreements,
which include contractual principal and interest payments and therefore exceeds
the amount shown in the consolidated balance sheets, totaled $6,860.4 million,
of which $187.8 million in interest payments is estimated to be paid in 2022. We
have no debt principal payments due in 2022.
•Investment commitments which represent commitments we have made to purchase or
fund investments including privately placed fixed maturity securities,
commercial mortgage loans, and private equity partnerships totaled $889.0
million, all of which is estimated to be paid in 2022 based on the expiration
date of the commitments. The funds due for these commitments are due upon
satisfaction of contractual notice from appropriate external parties and may or
may not be funded and are therefore not recorded on our consolidated balance
sheet.
•Amounts owed to reinsurers totaled $643.3 million of which $214.6 million is
estimated to be paid in 2022.
•Pensions and OPEB which includes commitments related to our defined benefit
pension and postretirement plans for our employees, including our non-qualified
pension plan, totaled $510.8 million, of which $19.1 million is estimated to be
paid in 2022. Pension plan obligations, other than the non-qualified plan,
represent our contributions to the pension plans and are projected based on the
expected future minimum contributions as required under current U.S. and U.K.
legislative funding requirements. Non-qualified pension plan and other
postretirement benefit obligations represent the expected benefit payments
related to these plans which we expect to pay, as incurred, from our general
assets.
•Payables for general operating expenses and deferred compensation liabilities
totaled $412.9 million of which $297.7 million is estimated to be paid in 2022.
•Obligations to return advances received from the FHLB and to return
unrestricted cash collateral to our securities lending and derivative
counterparties totaled $287.7 million of which $184.5 million is estimated to be
repaid in 2022.
•Commissions due totaled $124.5 million all of which is estimated to be paid in
2022.
•We also have obligations with outside parties for computer data processing
services, software maintenance agreements, and consulting services of $100.6
million, of which $53.9 million is estimated to be paid in 2022.
•Operating lease payments representing the amount of undiscounted minimum lease
payments due totaled $96.1 million of which $22.6 million is estimated to be
paid in 2022.

See "Critical Accounting Estimates" contained herein in this Item 7 and Notes 3,
4, 6, 8, 9, 12, and 15 of the "Notes to Consolidated Financial Statements"
contained herein in Item 8 for additional information on our various commitments
and obligations.

Transfers of Financial Assets

Our investment policy permits us to lend fixed maturity securities to
unaffiliated financial institutions in short-term securities lending agreements,
which increases our investment income with minimal risk. We account for all of
our securities lending agreements and repurchase agreements as secured
borrowings. As of December 31, 2021, we held $94.8 million of cash collateral
from securities lending agreements. The average balance for securities lending
agreements which were collateralized by cash during the year ended December 31,
2021 was $76.9 million, and the maximum amount outstanding at any month end was
$108.5 million. In addition, at December 31, 2021, we had $198.6 million of
off-balance sheet securities lending agreements which were collateralized by
securities that we were neither permitted to sell nor control. The average
balance of
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these off-balance sheet transactions during the year ended December 31, 2021 was
$171.4 million, and the maximum amount outstanding at any month end was $211.9
million.

To manage our cash position more efficiently, we may enter into repurchase
agreements with unaffiliated financial institutions. We generally use repurchase
agreements as a means to finance the purchase of invested assets or for
short-term general business purposes until projected cash flows become available
from our operations or existing investments. We had no repurchase agreements
outstanding at December 31, 2021, nor did we utilize any repurchase agreements
during 2021. Our use of repurchase agreements and securities lending agreements
can fluctuate during any given period and will depend on our liquidity position,
the availability of long-term investments that meet our purchasing criteria, and
our general business needs.

Certain of our U.S. insurance subsidiaries are members of regional Federal Home
Loan Banks (FHLB). As of December 31, 2021, we owned $22.1 million of FHLB
common stock and had outstanding advances of $160.9 million from the regional
FHLBs.

See Note 3 of the "Notes to Consolidated Financial Statements" contained herein
in Item 8 for additional information.

Consolidated Cash Flows

(in millions of dollars)

                                                              Year Ended 

December 31

                                                         2021          2020 

2019

Net Cash Provided by Operating Activities $ 1,387.5 $ 469.3 $ 1,606.6

      Net Cash Used by Investing Activities            (1,340.6)      

(267.7) (1,393.5)

      Net Cash Used by Financing Activities              (168.9)       

(88.7) (223.0)

      Net Change in Cash and Bank Deposits            $  (122.0)     $ 112.9      $    (9.9)



Operating Cash Flows

Operating cash flows are primarily attributable to the receipt of premium and
investment income, offset by payments of claims, commissions, expenses, and
income taxes. Premium income growth is dependent not only on new sales, but on
policy renewals and growth of existing business, renewal price increases, and
persistency. Investment income growth is dependent on the growth in the
underlying assets supporting our insurance reserves and capital and on the
earned yield. The level of commissions and operating expenses is attributable to
the level of sales and the first year acquisition expenses associated with new
business as well as the maintenance of existing business. The level of paid
claims is affected partially by the growth and aging of the block of business
and also by the general economy, as previously discussed in the operating
results by segment.

Included in the change in insurance reserves and liabilities and net investment
(gain) loss to reconcile net income to net cash provided by operating activities
as reported in our consolidated statements of cash flows for 2021 and 2020 were
the impacts of the two phases of the Closed Block individual disability
reinsurance transaction that occurred during the first quarter of 2021 and the
fourth quarter of 2020. Additionally, the operating cash flows for 2021 and 2020
included $456.8 million and $1,087.2 million, respectively, of cash paid to the
reinsurer related to the two phases of the Closed Block individual disability
reinsurance transaction. Also included in the change in insurance reserves and
liabilities for 2021 and 2020 were the net reserve changes related to the
reserve assumption updates that occurred during the third quarter of 2021 and
the fourth quarter of 2020. See "Executive Summary" contained herein in this
Item 7 and Note 6 of the "Notes to Consolidated Financial Statements" contained
herein in Item 8 for additional information on the Closed Block individual
disability reinsurance transaction and the reserve assumption updates.

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Investing Cash Flows

Investing cash inflows consist primarily of the proceeds from the sales and
maturities of investments.  Investing cash outflows consist primarily of
payments for purchases of investments.  Our investment strategy is to match the
cash flows and durations of our assets with the cash flows and durations of our
liabilities to meet the funding requirements of our business. When market
opportunities arise, we may sell selected securities and reinvest the proceeds
to improve the yield and credit quality of our portfolio. We may at times also
sell selected securities and reinvest the proceeds to improve the duration
matching of our assets and liabilities and/or re-balance our portfolio. As a
result, sales before maturity may vary from period to period. The sale and
purchase of short-term investments is influenced by proceeds received from FHLB
funding advances, issuance of debt, our securities lending program, and by the
amount of cash which is at times held in short-term investments to facilitate
the availability of cash to fund the purchase of appropriate long-term
investments, repay maturing debt, and/or to fund our capital deployment program.

See Note 3 of the "Notes to Consolidated Financial Statements" contained herein
in Item 8 for further information.

Financing Cash Flows

Financing cash flows consist primarily of borrowings and repayments of debt,
repurchase of common stock, dividends paid to stockholders, and policyholder
account deposits and withdrawals related to our universal life products.

During 2021, we issued $600.0 million of 4.125% senior notes due 2051 and
received total proceeds of $588.1 million.

Also during 2021, we purchased and retired $500.0 million aggregate principal
amount of our 4.500% senior notes due 2025, for which we paid an additional
$62.8 million in cash associated with the early retirement of this debt. We had
issued the $500.0 million 4.500% senior notes in 2020 and had received total
proceeds of $494.1 million.

During 2020, our $400.0 million 5.625% senior unsecured notes matured and we
repaid the remaining $80.0 million of principal on our senior secured
non-recourse notes issued by Northwind Holdings. During 2019, we purchased and
retired $433.1 million aggregate liquidation/principal amount of our outstanding
capital and debt securities, including debt repurchase costs of $25.9 million
for a total cash outflow of $459.0 million. Also during 2019, we made principal
payments of $60.0 million on the Northwind notes.

During 2019, we issued $450.0 million of 4.500% senior notes due 2049 and $400.0
million of 4.000% senior notes due 2029 and received total proceeds of $841.9
million.

Cash used to repurchase shares of Unum Group's common stock during 2021 and 2019
was $50.0 million and $400.3 million, respectively. There were no share
repurchases made during 2020. During 2021, 2020, and 2019 we paid dividends of
$239.4 million, $231.9 million, and $229.2 million, respectively, to holders of
Unum Group's common stock.

Included in financing cash flows during 2021 and 2020 was $40.4 million and
$62.1 million, respectively, of cash received related to the ALR cohort
volatility agreement with Commonwealth.

See "Debt, Credit Facilities and Other Sources of Liquidity" contained herein in
this Item 7, and Notes 8, 10, and 12 of the "Notes to Consolidated Financial
Statements" contained herein in Item 8 for further information.

Ratings

AM Best, Fitch, Moody's, and S&P are among the third parties that assign issuer
credit ratings to Unum Group and financial strength ratings to our insurance
subsidiaries. We compete based in part on the financial strength ratings
provided by rating agencies. A downgrade of our financial strength ratings can
be expected to adversely affect us and could potentially, among other things,
adversely affect our relationships with distributors of our products and
services and retention of our sales force, negatively impact persistency and new
sales, particularly large case group sales and individual sales, and generally
adversely affect our ability to compete. A downgrade in the issuer credit rating
assigned to Unum Group can be expected to adversely affect our cost of capital
or our ability to raise additional capital.

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The table below reflects the outlook as well as the issuer credit ratings for
Unum Group and the financial strength ratings for each of our traditional
insurance subsidiaries as of the date of this filing.

                                                    AM Best       Fitch        Moody's        S&P
  Outlook                                           Stable        Stable       Stable        Stable

  Issuer Credit Ratings                               bbb          BBB-         Baa3          BBB

  Financial Strength Ratings
  Provident Life and Accident Insurance Company        A            A-           A3            A
  Provident Life and Casualty Insurance Company        A            A-           NR            NR
  Unum Life Insurance Company of America               A            A-           A3            A
  First Unum Life Insurance Company                    A            A-           A3            A
  Colonial Life & Accident Insurance Company           A            A-           A3            A
  The Paul Revere Life Insurance Company               A            A-           A3            A
  Starmount Life Insurance Company                     A            NR           NR            NR
  Unum Insurance Company                              A-            A-           A3            NR
  Unum Limited                                        NR            NR           NR            A-



NR = not rated

We maintain an ongoing dialogue with the four rating agencies that evaluate us
in order to inform them of progress we are making regarding our strategic
objectives and financial plans as well as other pertinent issues. A significant
component of our communications involves our annual review meeting with each of
the four agencies. We hold other meetings throughout the year regarding our
business, including, but not limited to, quarterly updates.

On April 8, 2021, Fitch affirmed its financial strength ratings for our domestic
insurance subsidiaries and its issuer credit ratings on our senior debt
obligations. In addition, Fitch revised its outlook to stable from negative,
citing a favorable outlook compared to original COVID-19 expectations, earnings
and capital metrics stability, and manageable credit losses.

On June 10, 2021, AM Best upgraded its financial strength rating on Starmount
Life Insurance Company from A- to A, reflecting the strategic importance of
dental and vision products for Unum Group, and also affirmed its financial
strength rating for our other domestic insurance subsidiaries as well as its
issuer credit ratings on our senior debt obligations. In addition, AM Best
revised its outlook to stable from negative, citing an easing of balance sheet
pressure due to improving COVID-19 related economic conditions, and favorable
profitability trends that are expected to continue.

On November 8, 2021, Moody's affirmed the financial strength rating of our rated
insurance subsidiaries and its issuer credit rating on our senior debt
obligations. In addition, Moody's revised its outlook to stable from negative,
citing good earnings and capital generation resulting from higher sales, growing
premium income, positive performance in the Closed Block, and improving
macro-economic conditions.

There have been no other changes in the rating agencies' outlooks or ratings
during 2021 or in 2022 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. We have
ongoing dialogue with the rating agencies concerning our insurance risk profile,
our financial flexibility, our operating performance, and the quality of our
investment portfolios. The rating agencies provide specific criteria and,
depending on our performance relative to the criteria, will determine future
negative or positive rating agency actions.

See "Ratings" contained herein in Item 1 and "Risk Factors" contained herein in
Item 1A for further discussion.

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