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

Executive Summary

Unum Group, a Delaware general business corporation, and its insurance and
non-insurance subsidiaries, which collectively with Unum Group we refer to as
the Company, operate in the United States, the United Kingdom, Poland and, to a
limited extent, in certain other countries. The principal operating subsidiaries
in the United States are Unum Life Insurance Company of America (Unum America),
Provident Life and Accident Insurance Company (Provident), The Paul Revere Life
Insurance Company (Paul Revere), Colonial Life & Accident Insurance Company,
Starmount Life Insurance Company, in the United Kingdom, Unum Limited, and in
Poland, Unum Zycie TUiR S.A. (Unum Poland). We are a leading provider of
financial protection benefits in the United States and the United Kingdom. Our
products include disability, life, accident, critical illness, dental and
vision, and other related services. We market our products primarily through the
workplace.

We have three principal operating business segments: Unum US, Unum
International, and Colonial Life. Our other segments are the Closed Block and
Corporate segments. These segments are discussed more fully under "Segment
Results" included herein in this Item 2.

The benefits we provide help the working world thrive throughout life's moments
and protect people from the financial hardship of illness, injury, or loss of
life by providing support when it is needed most. As a leading provider of
employee benefits, we offer a broad portfolio of products and services through
the workplace.

Specifically, we offer group, individual, voluntary, and dental and vision
products as well as provide certain fee-based services. These products and
services, which can be sold stand-alone or combined with other coverages, help
employers of all sizes attract and retain a stronger workforce while protecting
the incomes and livelihood of their employees. We believe employer-sponsored
benefits are the most effective way to provide workers with access to
information and options to protect their financial stability. Working people and
their families, particularly those at lower and middle incomes, are perhaps the
most vulnerable in today's economy yet are often overlooked by many providers of
financial services and products. For many of these people, employer-sponsored
benefits are the primary defense against the potentially catastrophic fallout of
death, illness, or injury.

We have established a corporate culture consistent with the social values our
products provide. Because we see important links between the obligations we have
to all of our stakeholders, we place a strong emphasis on operating with
integrity and contributing to positive change in our communities. Accordingly,
we are committed not only to meeting the needs of our customers who depend on
us, but also to being accountable for our actions through sound and consistent
business practices, a strong internal compliance program, a comprehensive risk
management strategy, and an engaged employee workforce.

This discussion and analysis should be read in conjunction with the consolidated
financial statements and notes thereto in Part I, Item 1 contained in this Form
10-Q and with the "Cautionary Statement Regarding Forward-Looking Statements"
included below the Table of Contents, as well as the discussion, analysis, and
consolidated financial statements and notes thereto in Part I, Items 1 and 1A,
and Part II, Items 6, 7, 7A, and 8 of our annual report on Form 10-K for the
year ended December 31, 2020.

Operating Performance and Capital Management

For the third quarter of 2021, we reported net income of $328.6 million, or
$1.60 per diluted common share, compared to net income of $231.1 million, or
$1.13 per diluted common share, in the third quarter of 2020. For the first nine
months of 2021, we reported net income of $664.5 million, or $3.24 per diluted
common share, compared to net income of $657.6 million, or $3.23 per diluted
common share in the same period of 2020.

Included in our results for the third quarter of 2021 are:

•A net realized investment loss of $0.1 million before tax and $0.1 million
after tax, or a de minimis impact on earnings per diluted common share;
•Amortization of the cost of reinsurance of $19.7 million before tax and $15.5
million after tax, or $0.08 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; and
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•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.

Included in our results for the first nine months of 2021 are:

•A net realized investment gain, excluding the net realized investment gain
related to the Closed Block individual disability reinsurance transaction, of
$17.8 million before tax and $14.0 million after tax, or $0.07 per diluted
common share;
•Amortization of the cost of reinsurance of $59.4 million before tax and $46.8
million after tax, or $0.24 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;
•Tax expense related to a U.K. tax rate increase of $24.2 million, or $0.12 per
diluted common share; and
•The impact from the second phase of the Closed Block individual disability
reinsurance transaction that closed in the first quarter of 2021, 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.

Included in our results for the third quarter and first nine months of 2020, as
applicable, are:

•Net realized investment gains (losses) of $4.4 million before tax and $3.8
million after tax or $0.01 per diluted common share, and $(105.8) million before
tax and $(83.9) million after tax, or $0.41 per diluted common share,
respectively;
•Costs related to the organizational design update of $23.3 million before tax
and $18.6 million after tax, or $0.09 per diluted common share, for both the
third quarter and first nine months of 2020; and
•An impairment loss on the ROU asset of $12.7 million before tax and $10.0
million after tax, or $0.05 per diluted common share, for the first nine months
of 2020.

Adjusting for these items, after-tax adjusted operating income for the third
quarter of 2021 was $210.5 million, or $1.03 per diluted common share compared
to $245.9 million, or $1.21 per diluted common share, for the same period of
2020. After-tax adjusted operating income was $708.7 million, or $3.46 per
diluted common share, in the first nine months of 2021, compared to $770.1
million, or $3.78 per diluted common share, in the first nine months of 2020.
See "Reconciliation of Non-GAAP and Other Financial Measures" contained in this
Item 2 for a reconciliation of these items.

Our Unum US segment reported an increase in income before income tax and net
realized investment gains and losses of 61.3 percent in the third quarter of
2021 and a decrease of 12.2 percent in the first nine months of 2021, which
includes a reserve decrease related to an assumption update during the third
quarter of 2021. Excluding this item, our Unum US segment reported a decrease in
adjusted operating income of 53.0 percent and 43.8 percent in the third quarter
and first nine months of 2021, respectively, compared to the same periods of
2020, due primarily to unfavorable benefits experience. The benefit ratio,
excluding the reserve decrease, for our Unum US segment was 77.6 percent and
74.5 percent in the third quarter and first nine months of 2021, respectively,
compared to 70.9 percent and 67.8 percent in third quarter and first nine months
of 2020. Unum US sales increased 7.7 percent and decreased 3.6 percent in the
third quarter and first nine months of 2021, respectively, compared to the same
periods of 2020. Overall persistency was slightly higher relative to the prior
year period. See "2021 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 28.0 percent and 40.6 percent in the
third quarter and first nine months of 2021, respectively, compared to the same
periods of 2020. As measured in local currency, our Unum UK line of business
reported an increase in adjusted operating income of 21.1 percent and 37.9
percent in the third quarter and first nine months of 2021, respectively,
compared to the same periods of 2020 due primarily to higher premium income and
lower operating expenses. The benefit ratio for our Unum UK line of business was
79.2 percent and 79.1 percent in the third quarter and first nine months of
2021, respectively, compared to 77.1 percent and 80.0 percent in the same
periods of 2020. Unum International sales, as measured in U.S. dollars,
increased 36.2 percent and 12.1 percent in the third quarter and first nine
months of 2021 compared to the same periods of 2020. Unum UK sales, as measured
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in local currency increased 40.2 percent and 2.9 percent in the third quarter
and first nine months of 2021 relative to the same periods of 2020. Overall
persistency was higher relative to the prior year period.

Our Colonial Life segment reported a decrease in adjusted operating income of
13.1 percent in the third quarter of 2021 compared to the third quarter of 2020
due primarily to less favorable benefits experience and an increase in operating
expenses partially offset by an increase in net investment income. Adjusted
operating income declined 5.7 percent in the first nine months of 2021 compared
to the same period of 2020 due primarily to lower premium income and unfavorable
benefits experience partially offset by an increase in net investment income.
The benefit ratio for Colonial Life was 55.9 percent and 54.3 percent in the
third quarter and first nine months of 2021, respectively, compared to 52.2
percent and 51.8 percent in the same periods of 2020. Colonial Life sales
increased 28.6 percent and 21.1 percent in the third quarter and first nine
months of 2021, respectively, compared to the same periods of 2020. Persistency
was higher relative to the prior year period.

Our Closed Block segment reported income before income tax and net realized
investment gains and losses of $56.5 million and $85.7 million in the third
quarter and first nine months of 2021, which includes the reserve increases
related to the assumption update during the third quarter of 2021, impacts
related to the second phase of the Closed Block individual disability
reinsurance transaction during the first quarter of 2021, and the amortization
of the cost of reinsurance. Excluding these items, our Closed Block segment
reported adjusted operating income of $109.8 million and $318.0 million in the
third quarter and first nine months of 2021 compared to $70.8 million and $137.2
million in the same periods of 2020. The long-term care interest adjusted loss
ratio, excluding the reserve increase related to the assumption update in the
third quarter of 2021, was less favorable in the third quarter and first nine
months of 2021 relative to the same periods of 2020 but continues to be lower
than our long-term expectations. The interest adjusted loss ratio for individual
disability, excluding the reserve increase related to the assumption update in
the third quarter of 2021 and the reserve recognition impact from the
reinsurance transaction during the first quarter of 2021, was favorable during
the third quarter and first nine months of 2021 relative to the same periods of
2020. See "2021 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 $6.3
billion at September 30, 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 was 4.86 percent for the first
nine months of 2021 compared to a yield of 4.75 percent for full year 2020.

We believe our capital and financial positions are strong. At September 30,
2021, the risk-based capital (RBC) ratio for our traditional U.S. insurance
subsidiaries, calculated on a weighted average basis using the NAIC Company
Action Level formula, was approximately 380 percent, which is in line with our
expectations. We did not repurchase shares during the first nine months of 2021.
Our weighted average common shares outstanding, assuming dilution, equaled 205.1
million and 203.9 million for the third quarters of 2021 and 2020, respectively,
and 205.1 million and 203.6 million for the first nine months of 2021 and 2020,
respectively. On October 25, 2021, our board of directors authorized the
repurchase of up to $250.0 million of Unum Group's outstanding common stock
through December 31, 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. We intend to
execute an accelerated stock repurchase agreement to repurchase $50.0 million of
the Company's common stock during the fourth quarter of 2021. As
of September 30, 2021, Unum Group and our intermediate holding companies had
available holding company liquidity of $1,638 million that was held primarily in
bank deposits, commercial paper, money market funds, corporate bonds, and
asset-backed securities.

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2021 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.

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 12 of the "Notes to Consolidated Financial Statements"
contained in Item 1.

Impairment Loss on Right-of-Use 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 12 of
the "Notes to Consolidated Financial Statements" contained in Item 1.

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 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. On March 31, 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). 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.

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In connection with the second phase of the reinsurance transaction, Commonwealth
paid a total ceding commission to the ceding companies of $18.2 million. The
ceding companies transferred assets of $767.0 million, which consisted primarily
of cash and fixed maturity securities. In addition, we recognized the following
in the first quarter of 2021 related to the second phase:

•Net realized investment gains totaling $67.6 million, or $53.4 million after
tax, related to the transfer of investments.
•Increase in benefits and change in reserves for future benefits of $133.1
million, or $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 $6.2 million, or $5.0 million after tax.
•Reinsurance recoverable of $990.0 million related to the policies on claim
status (DLR cohort).
•Payable of $307.2 million related to the portfolio of invested assets
associated with the business ceded on a modified coinsurance basis.
•Cost of reinsurance, or prepaid reinsurance premium, of $43.1 million related
to the DLR cohort. The total cost of reinsurance recognized on a combined basis
for the first and second phases was $854.8 million for which we amortized $19.7
million, or $15.5 million after tax, and $59.4 million, or $46.8 million after
tax, during the three and nine month periods ended September 30, 2021,
respectively.
•Deposit asset of $5.0 million related to the ALR cohort. The total deposit
asset recognized on a combined basis for the first and second phases was $91.8
million.

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
Note 12 of the "Notes to Consolidated Financial Statements" contained herein in
Item 1 for further discussion on the impacts related to this reinsurance
transaction.

2020 Long-term Care Reserve Increase

During the fourth quarter of 2020, we completed a review of policy 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 and determined that our gross policy
and claim reserves should be increased by $151.5 million to reflect our current
estimate of future benefit obligations. This increase was primarily driven by an
update to our interest rate assumption, partially offset by favorable premium
rate increase approvals and inventory updates.

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. Further discussion is contained herein in
"Unum International Segment" in this Item 2.

Coronavirus Disease 2019 (COVID-19)

On March 11, 2020, the World Health Organization identified the spread of
COVID-19 as a pandemic. COVID-19 has caused significant disruption to the global
economy and has unfavorably impacted our company as well as the overall
insurance industry. Due to the unprecedented nature of these events and the
current pace of change in this environment, we cannot fully estimate the
ultimate impact of the COVID-19 pandemic at this time. We are closely monitoring
emerging pandemic trends that have and may continue to have adverse impacts on
our business.

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Results of Operations

Although we have experienced a disruption in sales activity related to certain
of our product lines, we have seen improvement during the third quarter and
first nine months of 2021, which has resulted in an increase in sales for
certain of our product lines, but 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. Though we have experienced improvements
in sales activity during the first nine months of 2021 in certain of our product
lines, if we continue to experience further disruptions, our premium income in
our principal operating segments may continue to be impacted. In addition, in
certain of our product lines, we have seen pressure in the number of lives
insured with our customers as they navigate the current environment. With
respect to premium collectability, as our outlook regarding the economic
environment and the financial condition of our customers has improved, we have
begun 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 current situation
persists, 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 third quarter of
2021, we experienced elevated mortality in working-aged 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 information on our allowance for expected credit losses see Note 12
of the "Notes to Consolidated Financial Statements" contained herein in Item 1.
For further discussion regarding the benefits experience for each of our
operating business segments, see "Segment Results" herein in this Item 2.

Financial Condition

Investments

Regarding our fixed maturity security portfolio, the current economic conditions
have increased volatility in the capital markets and have caused significant
pressure on the profitability of many companies. Our fixed income exposure to
consumer cyclicals, which have been stressed due to COVID-19 related shutdowns,
is a small portion of our portfolio and our exposure to other stressed
industries such as airlines and restaurants is minimal. We continue to monitor
capital market activity on a regular basis and to the extent that there are
continued 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.

Other

If we experience unfavorable trends in the above areas of focus, we may also
experience certain additional, correlated impacts such as an increase in the
amortization of deferred acquisition costs if we have a decline in persistency.
We may also be required to write-off or impair certain intangible/long-lived
assets such as value of business acquired and goodwill if we experience declines
in the overall profitability of our businesses. 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 higher level of short-term investments and posting additional collateral from
certain of our U.S. insurance subsidiaries to the regional Federal Home Loan
Banks (FHLB). As a result, 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.

As of September 30, 2021, we have borrowed $261.0 million of funds through our
memberships with the regional FHLBs and those funds are used for the purpose of
investing in either short-term investments or fixed maturity securities and have
additional borrowing capacity of approximately $927 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
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
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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 sell highly liquid invested assets or borrow funds on our credit
facility to meet operational cash flow requirements.

Business Operations

Other than disruption to sales processes in certain of our product lines, we
have not experienced a significant disruption to our operational processes as 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. We have implemented certain
travel restrictions on international travel for the safety of our employees and
customers, but do not expect those restrictions to significantly disrupt our
operations.

Consolidated Company Outlook

We believe our disciplined approach to 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, expand into new adjacent markets through
meaningful partnerships and effective deployment of our capital across our
portfolio.

Given the disruption and uncertainty caused by the COVID-19 pandemic, we expect
full year premium income to grow slightly from the prior year, but at a rate
that is below our historical levels. In addition, we may also continue to
experience increased claims volatility.

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
continued pricing discipline and our reserving methodology, we continuously
monitor emerging interest rate experience and adjust our pricing and reserve
discount rates, as appropriate.

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 re-emerge. Long-term, 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 2 and in the
"Notes to Consolidated Financial Statements" contained herein in Item 1.

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 net realized investment gains and losses and the
amortization of the cost of reinsurance as well as certain other items as
specified in the reconciliations below. We believe after-tax adjusted operating
income is a better performance measure and better indicator of the profitability
and underlying trends in our business.

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Realized 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 realized investment gains or losses.
Although we may experience realized 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 agreement that were executed in December 2020 and March 2021,
respectively. 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 2 and Notes 7
and 12 of the "Notes to Consolidated Financial Statements" contained herein in
Item 1 for further discussion regarding the items specified in the
reconciliations below.

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

Three Months Ended September 30

                                                                  2021                                          2020
                                                   (in millions)           per share *           (in millions)           per share *
Net Income                                       $    328.6              $       1.60          $        231.1          $       1.13
Excluding:
Net Realized Investment Gain (Loss) (net of tax
expense of $-; $0.6)                                   (0.1)                        -                     3.8                  0.01
Amortization of the Cost of Reinsurance (net of
tax benefit of $4.2; $-)                              (15.5)                    (0.08)                      -                     -
Net Reserve Decrease Related to Reserve
Assumption Updates (net of tax expense of $38.1;
$-)                                                   143.3                      0.70                       -                     -
Impairment Loss on Internal-Use Software (net of
tax benefit of $2.5; $-)                               (9.6)                    (0.05)                      -                     -
Costs Related to Organizational Design Update
(net of tax benefit of $-; $4.7)                          -                         -                   (18.6)                (0.09)

After-tax Adjusted Operating Income              $    210.5              $       1.03          $        245.9          $       1.21

* Assuming Dilution



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Nine Months Ended September 30

                                                                   2021                                         2020
                                                   (in millions)           per share *           (in millions)           per share *
Net Income                                        $    664.5             $       3.24          $        657.6          $       3.23
Excluding:
Net Realized Investment Gains and Losses
Net Realized Investment Gain Related to
Reinsurance Transaction (net of tax expense of
$14.2; $-)                                              53.4                     0.26                       -                     -
Net Realized Investment Gain (Loss), Other (net
of tax expense (benefit) of $3.8; $(21.9))              14.0                     0.07                   (83.9)                (0.41)
Total Net Realized Investment Gain (Loss)               67.4                     0.33                   (83.9)                (0.41)
Items Related to Closed Block Individual
Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs
(net of tax benefit of $29.2; $-)                     (110.1)                   (0.53)                      -                     -
Amortization of the Cost of Reinsurance (net of
tax benefit of $12.6; $-)                              (46.8)                   (0.24)                      -                     -
Total Items Related to Closed Block Individual
Disability Reinsurance Transaction                    (156.9)                   (0.77)                      -                     -
Net Reserve Decrease Related to Reserve
Assumption Updates (net of tax expense of $38.1;
$-)                                                    143.3                     0.70                       -                     -
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; $-)                              (53.2)                   (0.26)                      -                     -
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               $    708.7             $       3.46          $        770.1          $       3.78

* Assuming Dilution



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 net realized
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.

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

                                               Three Months Ended September 30         Nine Months Ended September 30
                                                   2021                2020               2021                2020
                                                                      (in millions of dollars)
Total Revenue                                  $  2,969.7          $ 2,996.3          $  9,034.7          $ 8,888.6
Excluding:
Net Realized Investment Gain (Loss)                  (0.1)               4.4                85.4             (105.8)
Adjusted Operating Revenue                     $  2,969.8          $ 

2,991.9 $ 8,949.3 $ 8,994.4

Income Before Income Tax                       $    409.9          $   299.6          $    871.3          $   839.3
Excluding:
Net Realized Investment Gains and Losses
Net Realized Investment Gain Related to
Reinsurance Transaction                                 -                  -                67.6                  -
Net Realized Investment Gain (Loss), Other           (0.1)               4.4                17.8             (105.8)
Total Net Realized Investment Gain (Loss)            (0.1)               4.4                85.4             (105.8)
Items Related to Closed Block Individual
Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction
Costs                                                   -                  -              (139.3)                 -
Amortization of the Cost of Reinsurance             (19.7)                 -               (59.4)                 -
Total Items Related to Closed Block Individual
Disability Reinsurance Transaction                  (19.7)                 -              (198.7)                 -
Net Reserve Decrease Related to Reserve
Assumption Updates                                  181.4                  -               181.4                  -
Impairment Loss on Internal-Use Software            (12.1)                 -               (12.1)                 -
Cost Related to Early Retirement of Debt                -                  -               (67.3)                 -
Impairment Loss on ROU Asset                            -                  -               (13.9)             (12.7)
Costs Related to Organizational Design Update           -              (23.3)                  -              (23.3)
Adjusted Operating Income                      $    260.4          $   318.5          $    896.5          $   981.1



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. There
have been no significant changes in our critical accounting estimates during the
nine months ended September 30, 2021.

For additional information, refer to our significant accounting policies in Note
1 of the "Notes to Consolidated Financial Statements" in Part II, Item 8 and
"Critical Accounting Estimates" in Part II, Item 7 of our annual report on Form
10-K for the year ended December 31, 2020.

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

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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 material decrease to accumulated
other comprehensive income (AOCI) within our total stockholders' equity balance.
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.

See Note 2 of the "Notes to Consolidated Financial Statements" contained herein
in Item 1 for further information on accounting developments.

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Consolidated Operating Results
(in millions of dollars)
                                               Three Months Ended September 30                                 Nine Months Ended September 30
                                        2021               % Change               2020                  2021                 % Change               2020
Revenue
Premium Income                      $  2,353.7                   1.5  %       $ 2,318.1          $       7,106.4                   0.7  %       $ 7,058.2
Net Investment Income                    550.2                 (10.3)             613.2                  1,662.4                  (5.9)           1,767.2
Net Realized Investment Gain (Loss)       (0.1)               (102.3)               4.4                     85.4                 180.7             (105.8)
Other Income                              65.9                   8.7               60.6                    180.5                   6.8              169.0
Total Revenue                          2,969.7                  (0.9)           2,996.3                  9,034.7                   1.6            8,888.6

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                        1,753.9                  (7.1)           1,888.6                  5,659.2                   0.6            5,626.2
Commissions                              258.3                     -              258.3                    777.9                  (4.0)             810.5
Interest and Debt Expense                 44.7                  (9.5)              49.4                    134.4                  (5.8)             142.6
Cost Related to Early Retirement of
Debt                                         -                     -                  -                     67.3                     N.M.               -
Deferral of Acquisition Costs           (128.6)                 (4.7)            (134.9)                  (388.9)                (13.0)            (446.8)
Amortization of Deferred
Acquisition Costs                        138.4                  (7.5)             149.7                    440.8                  (5.5)             466.6

Compensation Expense                     241.6                  (4.6)             253.3                    725.9                     -              726.0
Other Expenses                           251.5                   8.3              232.3                    746.8                   3.1              724.2
Total Benefits and Expenses            2,559.8                  (5.1)           2,696.7                  8,163.4                   1.4            8,049.3

Income Before Income Tax                 409.9                  36.8              299.6                    871.3                   3.8              839.3
Income Tax                                81.3                  18.7               68.5                    206.8                  13.8              181.7

Net Income                          $    328.6                  42.2          $   231.1          $         664.5                   1.0          $   657.6

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 1.380 and 1.289 for the three months ended September 30, 2021 and 2020, and
1.385 and 1.274 for the nine months ended September 30, 2021 and 2020,
respectively. If the 2020 results for our U.K. operations had been translated at
the exchange rates of 2021, our adjusted operating revenue and adjusted
operating income by segment would have been higher by approximately $11 million
and $1 million, respectively, in the third quarter of 2020 and higher by
approximately $45 million and $4 million, respectively, in the first nine months
of 2020. 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 for our principal operating business segments in the third
quarter and first nine months of 2021 increased slightly compared to the same
periods of 2020, primarily due to higher premium income in the Unum
International and Unum US segments. Partially offsetting the higher level of
premium income for the first nine months of 2021 is a decline in the Colonial
Life segment.

Net investment income decreased in the third quarter and first nine months of
2021 relative to the same periods of 2020 due to a decrease in the level of
invested assets supporting the Closed Block individual disability product line
resulting from both phases
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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.

We did not recognize any credit losses on fixed maturity securities during the
third quarter of 2021 and credit losses on fixed maturity securities were de
minimis during the third quarter of 2020. Included in net realized investment
gains and losses during the first nine months of 2021 and 2020 were credit
losses on fixed maturity securities of $9.3 million and $59.3 million,
respectively. Included in the net realized investment gains and losses for the
first nine months of 2021 is a net realized investment gain of $67.6 million
related to the transfer of investments in the second phase of the Closed Block
individual disability reinsurance transaction. Also included in net realized
investment gains and losses were changes in the fair value of an embedded
derivative in a modified coinsurance arrangement, which resulted in realized
gains (losses) of $2.6 million and $14.1 million in the third quarters of 2021
and 2020, respectively, and $21.2 million and $(30.9) million in first nine
months of 2021 and 2020, respectively. The changes in the embedded derivative
are primarily driven by movements in credit spreads in the overall investment
market. See Note 4 in the "Notes to Consolidated Financial Statements" contained
herein in Item 1 for further information on realized investment gains and
losses.

Other income is primarily comprised of fee-based service products in the Unum US
segment, which include leave management services and administrative services
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 the third quarter of 2021 relative
to the same period of 2020, and generally consistent in the first nine months of
2021 relative to the same period of 2020. Overall benefits experience for the
third quarter and first nine months of 2021 includes the impact of the reserve
assumption updates in our Unum US group disability product line and in our
Closed Block segment. Also included in the overall benefits experience for the
first nine months of 2021 is the reserve recognition impact from the second
phase of the Closed Block individual disability reinsurance transaction that
occurred during the first quarter of 2021. The benefits experience for each of
our operating business segments is discussed more fully in "Segment Results" as
follows.

Commissions were consistent during the third quarter of 2021 with the same
period of 2020 and were lower during the first nine months of 2021 compared to
the same period of 2020 driven primarily by lower year-to-date sales in our Unum
US voluntary benefits product line and lower prior period sales in the Colonial
Life segment. The deferral of acquisition costs was lower during the third
quarter and first nine months of 2021 compared to the same periods of 2020
driven primarily by lower year-to-date sales in our Unum US voluntary benefits
product line. Also contributing to the decrease in the deferral of acquisition
costs during the first nine months of 2021 were lower prior period sales in our
Colonial Life segment. The decrease in the amortization of deferred acquisition
costs in the third quarter and first nine months of 2021 compared to the same
periods of 2020 is primarily due to a decline in the level of the deferred
asset.

Interest and debt expense decreased in the third quarter and first nine months
of 2021 relative to the same periods of 2020 due primarily to a lower overall
interest rate on outstanding debt.

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. See Note 12 of the "Notes to Consolidated
Financial Statements" contained herein in Item 1 for further information.

Other expenses and compensation expense, on a combined basis, increased in the
third quarter and first nine months of 2021 compared to the same periods of 2020
due primarily to the amortization of cost of reinsurance related to the Closed
Block individual disability reinsurance transaction, the impairment loss on
internal-use software, and an increase in operational investments in our
business partially offset by the costs related to the organizational design
update incurred in the third quarter of 2020 and our continued focus on expense
management and operating efficiencies. Also contributing to the increase for the
first nine months of 2021 compared to the same period of 2020 are the costs
related to the second phase of the Closed Block individual disability
reinsurance transaction that occurred in the first quarter of 2021 and growth in
our fee based service products, partially offset by a decrease in the allowance
for expected credit losses on premiums receivable balances for the first nine
months of 2021 relative to the same period of 2020.

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Our effective income tax rates for the third quarter and first nine months of
2021 were 19.8 percent and 23.7 percent of income before income tax,
respectively, compared to 22.9 percent and 21.6 percent for the same prior year
periods. Our effective income tax rates differed from the U.S. statutory rate of
21 percent in effect for the third quarter and first nine months of 2021
primarily due to unfavorable global intangible low-taxed income tax and
favorable adjustments to our prior year tax return. Also impacting the
difference between the effective tax rate and the U.S. statutory rate in effect
for the first nine months of 2021 was the unfavorable impact of the U.K. tax
rate increase. Our effective income tax rates differed from the U.S. statutory
rate in effect for the third quarter and first nine months of 2020 primarily due
to the unfavorable impact of the U.K. tax rate increase and favorable tax
credits. See Note 12 of the "Notes to Consolidated Financial Statements"
contained herein in Item 1 for further information.

Consolidated Sales Results

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

(in millions)
                                                 Three Months Ended September 30                           Nine Months Ended September 30
                                           2021              % Change              2020             2021              % Change              2020
Unum US                                $   141.9                   7.7  %       $ 131.7          $  561.9                  (3.6) %       $ 582.8

Unum International                     $    24.1                  36.2  %       $  17.7          $   80.4                  12.1  %       $  71.7

Colonial Life                          $   112.3                  28.6  %       $  87.3          $  313.6                  21.1  %       $ 258.9



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 the third quarter and first
nine months of 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.

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Segment Results

Our reporting segments are comprised of the following: Unum US, Unum
International, Colonial Life, Closed Block, and Corporate.

Unum US Segment

The Unum US segment is comprised of group disability insurance, which includes
our long-term and short-term disability products, our medical stop-loss product,
and our fee-based leave management services and ASO business, group life and
accidental death and dismemberment products, and supplemental and voluntary
lines of business, which are comprised of 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)
                                                    Three Months Ended September 30                                  Nine Months Ended September 30
                                             2021                % Change               2020                  2021                 % Change               2020
Adjusted Operating Revenue
Premium Income                         $   1,500.8                     1.2  %       $ 1,483.4          $      4,548.7                    0.3  %       $ 4,533.8
Net Investment Income                        176.2                    (7.6)             190.7                   539.5                   (1.4)             547.2
Other Income                                  43.5                     3.6               42.0                   125.2                    6.6              117.5
Total                                      1,720.5                     0.3            1,716.1                 5,213.4                    0.3            5,198.5

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                              950.2                    (9.7)           1,052.2                 3,175.6                    3.3            3,073.6
Commissions                                  143.5                    (1.9)             146.3                   439.0                   (3.5)             455.0
Deferral of Acquisition Costs                (61.1)                  (10.4)             (68.2)                 (193.4)                 (13.4)            (223.3)
Amortization of Deferred Acquisition
Costs                                         71.1                   (13.4)              82.1                   243.7                   (6.9)             261.8
Other Expenses                               313.3                    (0.7)             315.5                   950.0                    0.1              949.5
Total                                      1,417.0                    (7.3)           1,527.9                 4,614.9                    2.2            4,516.6

Income Before Income Tax and Net
Realized Investment Gains and Losses         303.5                    61.3              188.2                   598.5                  (12.2)           

681.9

Reserve Assumption Update                   (215.0)                      N.M.               -                  (215.0)                     N.M.      

-

Adjusted Operating Income              $      88.5                   (53.0)         $   188.2          $        383.5                  (43.8)         $ 

681.9

Operating Ratios (% of Premium
Income):

Benefit Ratio1                                77.6    %                                  70.9  %                 74.5   %                                  67.8  %
Other Expense Ratio                           20.9    %                                  21.3  %                 20.9   %                                  20.9  %

Adjusted Operating Income Ratio                5.9    %                                  12.7  %                  8.4   %                               

15.0 %

1Excludes the $215.0 million reserve decrease during the third quarter and first nine months of 2021 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)
                                                  Three Months Ended September 30                                Nine Months Ended September 30
                                            2021               % Change              2020                 2021                 % Change               2020
Adjusted Operating Revenue
Premium Income
Group Long-term Disability             $   451.4                     0.2  %       $ 450.5          $      1,367.7                   (0.5) %       $ 1,374.5
Group Short-term Disability                212.4                     8.3            196.2                   641.2                    6.3              603.0
Total Premium Income                       663.8                     2.6            646.7                 2,008.9                    1.6            1,977.5
Net Investment Income                       93.3                   (11.5)           105.4                   284.7                   (3.6)             295.3
Other Income                                42.1                     7.4             39.2                   121.4                    9.0              111.4
Total                                      799.2                     1.0            791.3                 2,415.0                    1.3            2,384.2

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                            308.6                   (35.6)           479.3                 1,314.3                   (9.4)           1,450.8
Commissions                                 49.1                     3.2             47.6                   151.2                    3.8              145.6
Deferral of Acquisition Costs              (12.3)                    6.0            (11.6)                  (37.4)                   3.6             

(36.1)

Amortization of Deferred Acquisition
Costs                                       12.9                    (2.3)            13.2                    38.6                   (2.8)              39.7
Other Expenses                             186.4                    (1.8)           189.8                   569.8                    2.0              558.9
Total                                      544.7                   (24.2)           718.3                 2,036.5                   (5.7)           2,158.9

Income Before Income Tax and Net
Realized Investment Gains and Losses       254.5                       N.M.          73.0                   378.5                   68.0              225.3
Reserve Assumption Update                 (215.0)                      N.M.             -                  (215.0)                     N.M.               -
Adjusted Operating Income              $    39.5                   (45.9)         $  73.0          $        163.5                  (27.4)         $   225.3

Operating Ratios (% of Premium
Income):

Benefit Ratio1                              78.9    %                                74.1  %                 76.1   %                                  73.4  %
Other Expense Ratio                         28.1    %                                29.3  %                 28.4   %                                  28.3  %

Adjusted Operating Income Ratio              6.0    %                                11.3  %                  8.1   %                                  11.4  %

Persistency:
Group Long-term Disability                                                                                   89.8   %                                  90.3  %
Group Short-term Disability                                                                                  87.1   %                                  87.5  %

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

N.M. = not a meaningful percentage

Premium income was higher in the third quarter and first nine months of 2021
compared to the same periods of 2020 due primarily to higher sales in certain of
our group short-term disability products and growth in our medical stop-loss
product. Net investment income was lower in the third quarter of 2021 relative
to the same period of 2020 due to a decrease in miscellaneous investment income,
a decline in the yield on invested assets, and a lower level of invested assets.
Net investment income was lower during the first nine months of 2021 relative to
the same period of 2020 due to a decline in the yield on invested assets and a
lower level of invested assets, partially offset by an increase in miscellaneous
investment income. Other income
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increased in the third quarter and first nine months of 2021 compared to the
same periods of 2020 due primarily to continued growth in our fee-based service
products.

Benefits experience, excluding the impacts of the reserve assumption update, was
unfavorable in the third quarter and first nine months of 2021 compared to the
same periods of 2020 due to higher claims incidence in both the group short-term
and long-term disability product lines, partially offset by favorable recoveries
in the long-term disability product line.

Commissions and the deferral of acquisition costs were higher in the third
quarter and first nine months of 2021 compared to the same periods of 2020 due
primarily to higher sales in the group short-term disability product line. The
amortization of deferred acquisition costs decreased in the third quarter and
first nine months of 2021 compared to the same periods of 2020 due to a decline
in the level of the deferred asset. Our other expense ratio improved in the
third quarter of 2021 compared to the same period of 2020 due to our continued
focus on expense management and operating efficiencies, which was partially
offset by an increase in operational investments in our business. The other
expense ratio for the first nine months of 2021 compared to the same period of
2020 was generally consistent with growth in our fee-based service products
offset by a lower level of increase in the allowance for expected credit losses
on premiums receivable and 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)
                                               Three Months Ended September 30                                  Nine Months Ended September 30
                                         2021                 % Change              2020                 2021                 % Change               2020
Adjusted Operating Revenue
Premium Income
Group Life                         $       404.2                   (0.5) %       $ 406.3          $      1,228.8                   (0.5) %       $ 1,235.4
Accidental Death & Dismemberment            39.6                   (0.3)            39.7                   123.0                   (0.1)             123.1
Total Premium Income                       443.8                   (0.5)           446.0                 1,351.8                   (0.5)           1,358.5
Net Investment Income                       24.3                   (3.6)            25.2                    76.1                    2.6               74.2
Other Income                                 0.5                  (50.0)             1.0                     1.3                  (35.0)               2.0
Total                                      468.6                   (0.8)           472.2                 1,429.2                   (0.4)           1,434.7

Benefits and Expenses
Benefits and Change in Reserves
for Future Benefits                        446.6                   20.0            372.2                 1,281.2                   20.0            1,067.5
Commissions                                 36.4                    4.0             35.0                   109.1                    0.7              108.3
Deferral of Acquisition Costs               (8.9)                   6.0             (8.4)                  (27.3)                   3.8              (26.3)
Amortization of Deferred
Acquisition Costs                            9.5                   (1.0)             9.6                    28.7                   (2.0)              29.3
Other Expenses                              52.1                    4.4             49.9                   157.7                    3.6              152.2
Total                                      535.7                   16.9            458.3                 1,549.4                   16.4            1,331.0

Adjusted Operating Income (Loss)   $       (67.1)                     N.M.       $  13.9          $       (120.2)                     N.M.       $   

103.7

Operating Ratios (% of Premium
Income):
Benefit Ratio                              100.6   %                                83.5  %                 94.8   %                                  78.6  %

Other Expense Ratio                         11.7   %                                11.2  %                 11.7   %                                  11.2  %

Adjusted Operating Income (Loss)
Ratio                                      (15.1)  %                                 3.1  %                 (8.9)  %                                   7.6  %

Persistency:
Group Life                                                                                                  89.9   %                                  88.6  %
Accidental Death & Dismemberment                                                                            89.3   %                                  

87.8 %

N.M. = not a meaningful percentage

Premium income in the third quarter and first nine months of 2021 was generally
consistent with the same periods of 2020. Net investment income was lower in the
third quarter of 2021 relative to the same period of 2020 due to a decline in
the yield on invested assets and lower miscellaneous investment income,
partially offset by a higher level of invested assets. Net investment income was
higher in the first nine months of 2021 relative to the same period of 2020 due
to higher miscellaneous investment income and a higher level of invested assets,
partially offset by a decline in the yield on invested assets.

Benefits experience was unfavorable in the third quarter and first nine months
of 2021 compared to the same periods of 2020 due to higher incidence and average
claim size in the group life product line, resulting primarily from the impacts
of COVID-19.
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Commissions and the deferral of acquisition costs were higher in the third
quarter and first nine months of 2021 compared to the same periods of 2020 due
primarily to higher year-to-date sales which resulted in higher deferrable
expenses related to certain sales-based incentive compensation costs. The
amortization of deferred acquisition costs was slightly lower in the third
quarter and first nine months of 2021 relative to the same periods of 2020 due
to a decline in the level of the deferred asset. The other expense ratio
increased in the third quarter and first nine months of 2021 compared to the
same periods of 2020 due primarily to an increase in operational investments in
our business, partially offset by our continued focus on expense management and
operating efficiencies.
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)
                                                Three Months Ended September 30                                 Nine Months Ended September 30
                                          2021                 % Change              2020                2021                 % Change              2020
Adjusted Operating Revenue
Premium Income
Individual Disability               $       115.7                   (1.7) %       $ 117.7          $       345.0                    1.4  %       $  340.3
Voluntary Benefits                          209.6                   (1.2)           212.2                  640.4                   (3.9)            666.6
Dental and Vision                            67.9                   11.7             60.8                  202.6                    6.1             190.9
Total Premium Income                        393.2                    0.6            390.7                1,188.0                   (0.8)          1,197.8
Net Investment Income                        58.6                   (2.5)            60.1                  178.7                    0.6             177.7
Other Income                                  0.9                  (50.0)             1.8                    2.5                  (39.0)              4.1
Total                                       452.7                      -            452.6                1,369.2                   (0.8)          1,379.6

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                             195.0                   (2.8)           200.7                  580.1                    4.5             555.3
Commissions                                  58.0                   (8.9)            63.7                  178.7                  (11.1)            201.1
Deferral of Acquisition Costs               (39.9)                 (17.2)           (48.2)                (128.7)                 (20.0)           (160.9)
Amortization of Deferred
Acquisition Costs                            48.7                  (17.9)            59.3                  176.4                   (8.5)            192.8
Other Expenses                               74.8                   (1.3)            75.8                  222.5                   (6.7)            238.4
Total                                       336.6                   (4.2)           351.3                1,029.0                    0.2           1,026.7

Adjusted Operating Income           $       116.1                   14.6          $ 101.3          $       340.2                   (3.6)         $  352.9

Operating Ratios (% of Premium
Income):
Benefit Ratios:
Individual Disability                        40.1   %                                48.6  %                43.6   %                                 51.1  %
Voluntary Benefits                           46.6   %                                45.6  %                43.3   %                                 40.3  %

Dental and Vision                            75.0   %                                76.8  %                75.1   %                                 59.0  %
Other Expense Ratio                          19.0   %                                19.4  %                18.7   %                                 19.9  %

Adjusted Operating Income Ratio              29.5   %                                25.9  %                28.6   %                                 29.5  %

Persistency:
Individual Disability                                                                                       88.4   %                                 89.8  %
Voluntary Benefits                                                                                          75.4   %                                 72.7  %
Dental and Vision                                                                                           86.3   %                                 82.4  %



Premium income was slightly higher in the third quarter of 2021 compared to the
same period of 2020 due to higher sales in the dental and vision product line,
mostly offset by a decline in the voluntary benefits and individual disability
product lines. Premium income was slightly lower in the first nine months of
2021 compared to the same period of 2020 due to a decline in
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the voluntary benefits product line as a result of lower sales, partially offset
by growth in the individual disability and dental and vision product lines. Net
investment income was lower in the third quarter of 2021 compared to the same
period of 2020 due primarily to lower miscellaneous investment income and a
lower level of invested assets. Net investment income was higher in the first
nine months of 2021 compared to the same period of 2020 due to higher
miscellaneous investment income, partially offset by a decline in the yield on
invested assets.

Benefits experience for the individual disability product line was favorable in
the third quarter and first nine months of 2021 compared to the same periods of
2020 due primarily to lower claims incidence. Benefits experience for voluntary
benefits was unfavorable in the third quarter and first nine months of 2021
compared to the same periods of 2020 due 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 slightly favorable in the third quarter of 2021 but
was unfavorable in the first nine months of 2021 due primarily to higher claims
incidence compared to the same period of 2020 where we experienced lower claims
incidence resulting from the impacts of COVID-19 particularly in the second
quarter of 2020.

Commissions and the deferral of acquisition costs were lower in the third
quarter and first nine months of 2021 compared to the same periods of 2020 due
primarily to lower year-to-date sales in the voluntary benefits product line.
The amortization of deferred acquisition costs decreased in the third quarter
and first nine months of 2021 relative to the same periods of 2020 due to a
decline in the level of the deferred asset, primarily in the voluntary benefits
product line. Our other expense ratio improved in the third quarter and first
nine months of 2021 compared to the same periods of 2020 due to our continued
focus on expense management and operational efficiencies. Also contributing to
the decrease for the first nine months of 2021 compared to the same period of
2020 is a decrease in the allowance for expected credit losses on premiums
receivable.
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Sales
(in millions of dollars)
                                             Three Months Ended September 30                           Nine Months Ended September 30
                                       2021              % Change              2020             2021              % Change              2020
Sales by Product
Group Disability and Group Life
and AD&D
Group Long-term Disability         $    26.2                 (12.1) %       $  29.8          $   99.3                 (14.7) %       $ 116.4
Group Short-term Disability             21.6                  42.1             15.2              76.9                  30.3             59.0
Group Life and AD&D                     26.6                 (15.0)            31.3             120.6                   4.0            116.0
Subtotal                                74.4                  (2.5)            76.3             296.8                   1.9            291.4
Supplemental and Voluntary
Individual Disability                   20.9                  22.9             17.0              52.8                  (2.0)            53.9
Voluntary Benefits                      34.0                  13.7             29.9             178.7                 (13.0)           205.5
Dental and Vision                       12.6                  48.2              8.5              33.6                   5.0             32.0
Subtotal                                67.5                  21.8             55.4             265.1                  (9.0)           291.4
Total Sales                        $   141.9                   7.7          $ 131.7          $  561.9                  (3.6)         $ 582.8

Sales by Market Sector
Group Disability and Group Life
and AD&D
Core Market (< 2,000 employees)    $    45.9                  (1.7) %       $  46.7          $  187.5                   5.0  %       $ 178.5
Large Case Market                       28.5                  (3.7)            29.6             109.3                  (3.2)           112.9
Subtotal                                74.4                  (2.5)            76.3             296.8                   1.9            291.4
Supplemental and Voluntary              67.5                  21.8             55.4             265.1                  (9.0)           291.4
Total Sales                        $   141.9                   7.7          $ 131.7          $  561.9                  (3.6)         $ 582.8



Group sales decreased during the third quarter of 2021 compared to the same
period of 2020 due to lower sales to new customers, partially offset by higher
sales to existing customers. Group sales increased in the first nine months of
2021 compared to the same period of 2020 due to higher sales to existing
customers, partially offset by lower sales to new customers and lower sales in
our medical stop-loss product. The sales mix in the group market sector for the
first nine months of 2021 was approximately 63 percent core market and 37
percent large case market.

Individual disability sales, which are primarily concentrated in the multi-life
market, increased in the third quarter of 2021 compared to the same period of
2020 due to higher sales to both new and existing customers. Individual
disability sales decreased in the first nine months of 2021 compared to the same
period of 2020 due to lower sales to new customers, partially offset by higher
sales to existing customers. Voluntary benefits sales increased during the third
quarter of 2021 compared to the same period of 2020 due to higher sales to new
and existing customers in both the core and large case markets. Voluntary
benefits sales decreased during the first nine months of 2021 compared to the
same period of 2020 due to lower sales to new and existing customers in both the
core and large case markets. Dental and vision sales increased in the third
quarter and first nine months of 2021 compared to the same periods of 2020 due
primarily to higher sales to existing customers. Also contributing to the
increase in the third quarter of 2021 compared to the same period of 2020 was
higher sales to new customers.

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 during the third quarter and first nine months of 2021, which has
resulted in an increase in sales for certain of our product lines, but 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 2.

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Segment Outlook

We remain committed to offering consumers a broad set of financial protection
benefit products at the worksite. During 2021, we will continue to invest in a
unique customer experience defined by simplicity, empathy, and deep industry
expertise through the re-design of our processes and 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 offering and significant investment in leave management services
will allow for substantial growth opportunities, particularly with larger
employers, and stronger persistency in our core products. We believe our active
client management and differentiated integrated customer experience across our
product lines, underpinned by strong risk management, will continue to enable us
to grow our market over the long-term.

Given the disruption and uncertainty caused by the COVID-19 pandemic, we expect
full year premium income to grow slightly from the prior year, but at a rate
that is below our historical levels. In addition, we may also continue to
experience claims volatility, particularly in our group short-term disability
and group and voluntary life products as well as 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 product 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 unfavorably impacted by fluctuations in miscellaneous investment
income. 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 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)
                                                 Three Months Ended September 30                           Nine Months Ended September 30
                                            2021              % Change             2020             2021              % Change              2020
Adjusted Operating Revenue
Premium Income
Unum UK
Group Long-term Disability              $   101.6                  10.2  %       $ 92.2          $  303.8                  11.7  %       $ 272.0
Group Life                                   29.1                   6.6            27.3              84.4                   1.3             83.3
Supplemental                                 28.3                  11.4            25.4              84.2                  13.9             73.9
Unum Poland                                  22.6                  10.2            20.5              67.1                  15.9             57.9
Total Premium Income                        181.6                   9.8           165.4             539.5                  10.8            487.1
Net Investment Income                        33.1                  25.9            26.3              94.8                  19.8             79.1
Other Income                                  0.4                 100.0             0.2               0.6                  50.0              0.4
Total                                       215.1                  12.1           191.9             634.9                  12.1            566.6

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                             139.6                  12.1           124.5             416.6                  10.2            377.9
Commissions                                  13.9                  12.1            12.4              40.7                  10.6             36.8
Deferral of Acquisition Costs                (3.3)                 17.9            (2.8)             (9.6)                  7.9             (8.9)
Amortization of Deferred Acquisition
Costs                                         2.0                  11.1             1.8               6.1                  15.1              5.3
Other Expenses                               35.5                   2.6            34.6             102.5                   2.9             99.6
Total                                       187.7                  10.1           170.5             556.3                   8.9            510.7

Adjusted Operating Income               $    27.4                  28.0          $ 21.4          $   78.6                  40.6          $  55.9



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 have an effect on 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)
                                             Three Months Ended September 30                              Nine Months Ended September 30
                                       2021               % Change             2020                2021                 % Change              2020
Adjusted Operating Revenue
Premium Income
Group Long-term Disability         £   73.7                     3.4  %    

  £ 71.3          £       219.3                    2.5  %       £ 213.9
Group Life                             21.1                       -            21.1                   60.9                   (7.0)            65.5
Supplemental                           20.6                     4.6            19.7                   60.8                    4.5             58.2
Total Premium Income                  115.4                     2.9           112.1                  341.0                    1.0            337.6
Net Investment Income                  22.5                    19.0            18.9                   64.2                   10.5             58.1
Other Income                            0.2                   100.0             0.1                    0.2                  100.0              0.1
Total                                 138.1                     5.3           131.1                  405.4                    2.4            395.8

Benefits and Expenses
Benefits and Change in Reserves
for Future Benefits                    91.4                     5.8            86.4                  269.6                   (0.2)           270.2
Commissions                             7.5                     8.7             6.9                   21.6                    2.4             21.1
Deferral of Acquisition Costs          (1.2)                   33.3            (0.9)                  (3.2)                     -             (3.2)
Amortization of Deferred
Acquisition Costs                       1.2                    (7.7)            1.3                    3.8                   (2.6)             3.9
Other Expenses                         20.8                    (6.3)           22.2                   59.8                   (7.7)            64.8
Total                                 119.7                     3.3           115.9                  351.6                   (1.5)           356.8

Adjusted Operating Income          £   18.4                    21.1          £ 15.2          £        53.8                   37.9          £  39.0

Weighted Average Pound/Dollar
Exchange Rate                         1.380                                   1.289                  1.385                                   1.274

Operating Ratios (% of Premium
Income):
Benefit Ratio                          79.2    %                               77.1  %                79.1   %                                80.0  %
Other Expense Ratio                    18.0    %                               19.8  %                17.5   %                                19.2  %
Adjusted Operating Income Ratio        15.9    %                               13.6  %                15.8   %                                11.6  %

Persistency:

Group Long-term Disability                                                                            88.9   %                                87.2  %
Group Life                                                                                            86.0   %                                81.0  %
Supplemental                                                                                          89.9   %                                90.3  %



Premium income was higher in the third quarter and first nine months of 2021
compared to the same periods of 2020 due to growth in the in-force block
resulting from the impact of rate increases in the group long-term disability
product line and higher overall persistency.

Net investment income was higher in the third quarter and first nine months of
2021 compared to the same periods of 2020 due to higher investment income from
inflation index-linked bonds and higher asset levels, 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 index-linked bonds is generally offset by a change in the
reserves for future claim payments related to the inflation-linked group
long-term disability and group life policies.

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Benefits experience was unfavorable in the third quarter of 2021 compared to the
same period of 2020 due to higher inflation-linked experience in benefits and a
higher average claim size in the group life product line partially offset by
lower claim incidence in the group long-term disability product line. Benefits
experience was favorable in the first nine months of 2021 compared to the same
prior year period, with favorable experience in both the group long-term
disability and group critical illness product lines mostly offset by higher
inflation-linked experience in benefits and a higher average claim size in the
group life product line.

Commissions and the deferral of acquisition costs increased due to higher sales
and premium income in the third quarter and first nine months of 2021compared to
the same periods of 2020. The amortization of deferred acquisition costs during
the third quarter and first nine months of 2021 was generally consistent with
the same prior year periods. The other expense ratios during the third quarter
and first nine months of 2021 were lower compared to the same prior year periods
due to our continued focus on expense management and operating efficiencies and
certain prior year expenses related to COVID-19 that did not recur.

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Sales

(in millions of dollars and
pounds)
                                            Three Months Ended September 30                         Nine Months Ended September 30
                                      2021              % Change             2020             2021              % Change             2020
Unum International Sales by
Product
Unum UK
Group Long-term Disability         $   10.1                  24.7  %       $  8.1          $   33.4                  12.5  %       $ 29.7
Group Life                              6.8                  58.1             4.3              22.9                  42.2            16.1
Supplemental                            3.7                 146.7             1.5              13.6                 (17.6)           16.5
Unum Poland                             3.5                  (7.9)            3.8              10.5                  11.7             9.4
Total Sales                        $   24.1                  36.2          $ 17.7          $   80.4                  12.1          $ 71.7

Unum International Sales by Market
Sector
Unum UK
Group Long-term Disability and
Group Life
Core Market (< 500 employees)      $    9.3                  22.4  %       $  7.6          $   30.5                  13.4  %       $ 26.9
Large Case Market                       7.6                  58.3             4.8              25.8                  36.5            18.9
Subtotal                               16.9                  36.3            12.4              56.3                  22.9            45.8
Supplemental                            3.7                 146.7             1.5              13.6                 (17.6)           16.5
Unum Poland                             3.5                  (7.9)            3.8              10.5                  11.7             9.4
Total Sales                        $   24.1                  36.2          $ 17.7          $   80.4                  12.1          $ 71.7

Unum UK Sales by Product
Group Long-term Disability         £    7.4                  19.4  %       £  6.2          £   24.1                   3.0  %       £ 23.4
Group Life                              4.9                  48.5             3.3              16.5                  29.9            12.7
Supplemental                            2.7                 125.0             1.2               9.9                 (23.8)           13.0
Total Sales                        £   15.0                  40.2          £ 10.7          £   50.5                   2.9          £ 49.1

Unum UK Sales by Market Sector
Group Long-term Disability and
Group Life
Core Market (< 500 employees)      £    6.7                  15.5  %       £  5.8          £   22.0                   4.3  %       £ 21.1
Large Case Market                       5.6                  51.4             3.7              18.6                  24.0            15.0
Subtotal                               12.3                  29.5             9.5              40.6                  12.5            36.1
Supplemental                            2.7                 125.0             1.2               9.9                 (23.8)           13.0
Total Sales                        £   15.0                  40.2          £ 10.7          £   50.5                   2.9          £ 49.1

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

Group long-term disability sales increased in the third quarter of 2021 compared
to the same period of 2020 driven by higher sales to new customers in the large
case market, which we define as employee groups with greater than or equal to
500 employees, partially offset by lower sales to existing customers in the
large case market. Group long-term disability sales were higher in the first
nine months of 2021 compared to the same period of 2020 driven by higher sales
to new customers in the core market and existing customers in the large case
market, partially offset by lower sales to new customers in the large case
market and existing customers in the core market.

Group life sales increased in the third quarter and first nine months of 2021
compared to the same periods of 2020 driven primarily by higher sales to new
customers in both the core and large case markets. Also contributing to the
increase was
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higher sales to existing customers in the large case market during the first
nine months of 2021 compared to the same period of 2020.

Supplemental sales were higher in the third quarter of 2021 compared to the same
period of 2020 due primarily to higher sales in both the group critical illness
and dental product lines. Supplemental sales were lower in the first nine months
of 2021 compared to the same period of 2020 due primarily to lower sales in the
group critical illness product line, partially offset by higher sales in the
dental product line.

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. Within our Unum UK line of business,
expanding our group long-term disability market position remains a priority. In
addition, we will continue to focus on increasing participation levels while
also developing new distribution and services to reach new small case clients.
We will also continue the implementation of price increases and will 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.

Given the uncertainty caused by the COVID-19 pandemic, we may experience further
volatility in our financial results in 2021. Sales activity could be lower and
we could also continue to experience claims volatility in our group life and
disability product lines. Uncertainty in the U.K. economy may continue to
pressure our growth expectations in the near-term and may also lead to lower
claim discount rates. However, 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.; however, we do not expect this to have a significant
impact on adjusted operating income. We continuously monitor key indicators to
assess our risks and attempt to 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 agency
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)
                                                Three Months Ended September 30                                 Nine Months Ended September 30
                                          2021                 % Change              2020                2021                 % Change              2020
Adjusted Operating Revenue
Premium Income
Accident, Sickness, and Disability  $       238.0                   (0.4) %       $ 238.9          $       715.1                   (3.2) %       $  738.4
Life                                         94.6                    2.9             91.9                  287.3                    1.7             282.5
Cancer and Critical Illness                  88.2                   (1.0)            89.1                  264.5                   (2.9)            272.3
Total Premium Income                        420.8                    0.2            419.9                1,266.9                   (2.0)          1,293.2
Net Investment Income                        51.8                   18.5             43.7                  131.1                   10.9             118.2
Other Income                                  0.3                      -              0.3                    0.8                  (11.1)              0.9
Total                                       472.9                    1.9            463.9                1,398.8                   (1.0)          1,412.3

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                             235.2                    7.4            219.0                  688.2                    2.8             669.4
Commissions                                  80.5                    0.8             79.9                  236.9                   (8.9)            260.0
Deferral of Acquisition Costs               (64.2)                   0.5            (63.9)                (185.9)                 (13.4)           (214.6)
Amortization of Deferred
Acquisition Costs                            65.3                   (0.8)            65.8                  191.0                   (4.3)            199.5
Other Expenses                               76.0                    7.2             70.9                  219.4                   (6.2)            233.8
Total                                       392.8                    5.7            371.7                1,149.6                    0.1           1,148.1

Adjusted Operating Income           $        80.1                  (13.1)         $  92.2          $       249.2                   (5.7)         $  264.2

Operating Ratios (% of Premium
Income):
Benefit Ratio                                55.9   %                                52.2  %                54.3   %                                 51.8  %

Other Expense Ratio                          18.1   %                                16.9  %                17.3   %                                 18.0  %

Adjusted Operating Income Ratio              19.0   %                                22.0  %                19.7   %                                

20.4 %

Persistency:

Accident, Sickness, and Disability                                                                          75.6   %                                 74.2  %
Life                                                                                                        84.9   %                                 83.4  %
Cancer and Critical Illness                                                                                 82.1   %                                 81.4  %



Premium income in the third quarter of 2021 was slightly favorable compared to
the same period of 2020, due to higher overall persistency and higher
year-to-date sales. Premium income was lower in the first nine months of 2021
compared to the same period of 2020 due to lower prior period sales. Net
investment income increased during the third quarter and first nine months of
2021 relative to the same periods of 2020 due to higher miscellaneous investment
income and a higher level of invested assets. Also impacting the comparison of
the first nine months of 2021 relative to the same period of 2020 was a partial
offset due to a decline in the yield on invested assets.

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Benefits experience during the third quarter and first nine months of 2021 was
unfavorable compared to the same periods of 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 higher in the third
quarter of 2021 relative to the same period of 2020 due to higher current year
sales. Commissions and the deferral of acquisition costs were lower for the
first nine months of 2021 relative to the same periods of 2020 due to lower
prior period sales. The amortization of deferred acquisition costs was lower
during the third quarter and first nine months of 2021 relative to the same
periods of 2020 due to a decline in the level of the deferred asset. The other
expense ratio was higher in the third quarter of 2021 relative to the same
period of 2020 due primarily to an increase in the allowance for expected credit
losses on premiums receivable and operational investments in our business. The
other expense ratio was lower for the first nine months of 2021 relative to the
same period of 2020 due primarily to a decrease in the allowance for expected
credit losses and our continued focus on expense management and operating
efficiencies.

Sales
(in millions of dollars)
                                           Three Months Ended September 30                           Nine Months Ended September 30
                                      2021              % Change             2020             2021              % Change              2020
Sales by Product
Accident, Sickness, and
Disability                        $    69.8                  26.2  %       $ 55.3          $  196.4                  18.9  %       $ 165.2
Life                                   26.4                  35.4            19.5              73.2                  30.0             56.3
Cancer and Critical Illness            16.1                  28.8            12.5              44.0                  17.6             37.4

Total Sales                       $   112.3                  28.6          $ 87.3          $  313.6                  21.1          $ 258.9

Sales by Market Sector
Commercial
Core Market (< 1,000 employees)   $    72.3                  26.2  %       $ 57.3          $  207.2                  21.3  %       $ 170.8
Large Case Market                      14.3                  64.4             8.7              43.4                  41.8             30.6
Subtotal                               86.6                  31.2            66.0             250.6                  24.4            201.4
Public Sector                          25.7                  20.7            21.3              63.0                   9.6             57.5
Total Sales                       $   112.3                  28.6          $ 87.3          $  313.6                  21.1          $ 258.9



Beginning in 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. However, we have seen improvement in these
factors subsequent to the onset of COVID-19 which has resulted in an increase in
sales for each of our product lines and market sectors during the third quarter
and first nine months of 2021 relative to the same periods of 2020. The number
of new accounts increased 11.6 percent and 20.3 percent, respectively, in the
third quarter and first nine months of 2021 compared to the same periods of
2020. The average new case size decreased 2.0 percent in the third quarter of
2021 but increased 0.7 percent during the first nine months of 2021 compared to
the same periods of 2020, respectively.

Segment Outlook

We remain committed to providing employees and their families with simple,
modern, and personal benefit solutions. During 2021, 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 2021, we will
also 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 the long-term.

Given the uncertainty caused by the COVID-19 pandemic, the disruption
experienced in our sales activity is expected to result in lower premium income
for 2021. We could also 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
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strong, current economic conditions and increasing competition in the voluntary
workplace market are seen as external 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 2 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.

Operating Results

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

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(in millions of dollars, except
ratios)
                                                  Three Months Ended September 30                                  Nine Months Ended September 30
                                            2021                  % Change              2020                2021                 % Change              2020
Adjusted Operating Revenue
Premium Income
Long-term Care                      $      176.1                        5.0  %       $ 167.7          $       528.4                    6.1  %       $  498.2
Individual Disability                       72.3                       (9.6)            80.0                  216.8                   (9.7)            240.1
All Other                                    2.1                       23.5              1.7                    6.1                    5.2               5.8
Total Premium Income                       250.5                        0.4            249.4                  751.3                    1.0             744.1
Net Investment Income                      284.6                      (19.0)           351.2                  876.5                  (13.5)          1,013.6
Other Income                                19.3                        8.4             17.8                   49.8                    0.2              49.7
Total                                      554.4                      (10.3)           618.4                1,677.6                   (7.2)          1,807.4

Benefits and Expenses
Benefits and Change in Reserves for
Future Benefits                            428.9                      (13.0)           492.9                1,378.8                   (8.4)          1,505.3
Commissions                                 20.4                        3.6             19.7                   61.3                    4.4              58.7
Interest and Debt Expense                      -                          N.M.           0.4                      -                      N.M.            1.9
Other Expenses                              48.6                       40.5             34.6                  151.8                   45.5             104.3
Total                                      497.9                       (9.1)           547.6                1,591.9                   (4.7)          1,670.2

Income Before Income Tax and Net
Realized Investment Gains and
Losses                                      56.5                      (20.2)            70.8                   85.7                  (37.5)       

137.2

Long-term Care Reserve Increase              2.1                          N.M.             -                    2.1                      N.M.         

-

Individual Disability Reserve
Increase                                     6.4                          N.M.             -                    6.4                      N.M.         

-

Group Pension Reserve Increase              25.1                          N.M.             -                   25.1                      N.M.         

-

Impacts from Closed Block
Individual Disability Reinsurance
Transaction                                    -                          -                -                  139.3                      N.M.              -
Amortization of the Cost of
Reinsurance                                 19.7                          N.M.             -                   59.4                      N.M.              -
Adjusted Operating Income           $      109.8                       55.1          $  70.8          $       318.0                  131.8          $  137.2

Interest Adjusted Loss Ratios:
Long-term Care1                             74.8       %                                67.4  %                75.7   %                                 71.8  %

Individual Disability2                      58.2       %                                86.6  %                65.6   %                                 87.0  %

Operating Ratios (% of Premium
Income):
Other Expense Ratio3                        11.5       %                                13.9  %                11.5   %                                 14.0  %
Income Ratio                                22.6       %                                                       11.4   %
Adjusted Operating Income Ratio             43.8       %                                28.4  %                42.3   %                                 18.4  %

Persistency:
Long-term Care                                                                                                 95.5   %                                 95.0  %
Individual Disability                                                                                          86.5   %                                 88.5  %

1Excludes the $2.1 million reserve increase during the third quarter and first nine months of 2021 related to the assumption update that occurred during the
third quarter of 2021.
2Excludes the $133.1 million reserve recognition from the first nine months of 2021 related to the second phase of the reinsurance transaction that occurred
during the first quarter of 2021. Also excluded from the third quarter and first nine months of 2021 is the $6.4 million reserve increase related to the
assumption update that occurred during the third quarter of 2021.
3Excludes $19.7 million and $59.4 million of amortization of the cost of reinsurance during the third quarter and first nine months of 2021, respectively. Also
excluded from the first nine months of 2021 is $6.2 million of transaction costs related to the reinsurance transaction that occurred during the first quarter
of 2021.

N.M. = not a meaningful percentage

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Premium income for long-term care increased in the third quarter and first nine
months of 2021 relative to the same periods of 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 in the third quarter and first nine months of
2021 compared to the same periods of 2020 due to policy terminations and
maturities.

Net investment income was lower during the third quarter and first nine months
of 2021 relative to the same periods of 2020 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
net asset values (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 in the third quarter and first nine months of
2021 relative to the same periods of 2020.

The interest adjusted loss ratio for long-term care, excluding the reserve
increase related to the assumption update, was less favorable during the third
quarter and first nine months of 2021 relative to the same periods of 2020
driven by lower claimant mortality and higher submitted claims. The interest
adjusted loss ratio for long-term care for the rolling twelve months, excluding
the reserve increases related to the assumption updates in the third quarter of
2021 and the fourth quarter of 2020, was 71.8 percent. The interest adjusted
loss ratio for individual disability, excluding the reserve increase related to
the assumption update and the reserve recognition impact from the reinsurance
transaction, was favorable during the third quarter and first nine months of
2021 relative to the same periods of 2020 driven primarily by lower submitted
claims.

Also impacting benefits experience for the Closed Block segment in the third
quarter and first nine months of 2021 was the previously discussed group pension
reserve increase related to the assumption update 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.

The decrease in interest and debt expense is due to the December 2020 redemption
of the senior secured notes issued by Northwind Holdings, LLC.

The other expense ratio, excluding certain transaction costs incurred and the
amortization of the cost of reinsurance related to the previously discussed
reinsurance transaction, was lower in the third quarter and first nine months of
2021 compared to the same periods of 2020 driven primarily by our continued
focus on expense management and operating efficiencies.

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
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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 agreement related to our
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 $80 million for 2021. 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 will be 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 expect our
Closed Block segment 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)
                                             Three Months Ended September 30                           Nine Months Ended September 30
                                        2021             % Change             2020              2021              % Change              2020
Adjusted Operating Revenue
Net Investment Income               $     4.5                   N.M.       $   1.3          $    20.5                 125.3  %       $    9.1
Other Income                              2.4                   N.M.           0.3                4.1                     N.M.            0.5
Total                                     6.9                   N.M.           1.6               24.6                 156.3               9.6

Interest, Debt, and Other Expenses       64.4             (18.5)              79.0              250.7                  23.1             203.7

Loss Before Income Tax and Net
Realized Investment Gains and
Losses                                  (57.5)             25.7              (77.4)            (226.1)                (16.5)           (194.1)
Impairment Loss on Internal-Use
Software                                 12.1                   N.M.             -               12.1                     N.M.              -
Cost Related to Early Retirement of
Debt                                        -                 -                  -               67.3                     N.M.              -
Impairment Loss on ROU Asset                -                 -                  -               13.9                   9.4              12.7
Costs Related to Organizational
Design Update                               -                   N.M.          23.3                  -                     N.M.           23.3
Adjusted Operating Loss             $   (45.4)             16.1            $ (54.1)         $  (132.8)                 16.0          $ (158.1)

N.M. = not a meaningful percentage

Adjusted operating loss, which excludes the items listed above, decreased in the
third quarter and first nine months of 2021 relative to the same periods of
2020, due primarily to higher net investment income, which resulted from an
increase in the level of invested assets, and lower interest and debt expenses.
See Note 12 of the "Notes to Consolidated Financial Statements" contained herein
in Item 1 for further discussion on the impairment loss on internal-use
software, costs related to the early retirement of debt, the ROU asset
impairments, and 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

Investment activities are an integral part of our business, and profitability is
significantly affected by investment results. We segment our invested assets
into portfolios that support our various product lines. Generally, our
investment strategy for our portfolios is to match the effective asset cash
flows and durations with related expected liability cash flows and durations to
consistently meet the liability funding requirements of our businesses. We seek
to earn investment income while assuming credit risk in a prudent and selective
manner, subject to constraints of quality, liquidity, diversification, and
regulatory considerations. Our overall investment philosophy is to invest in a
portfolio of high quality assets that provide investment returns consistent with
that assumed in the pricing of our insurance products. Assets are invested
predominately in fixed maturity securities. Changes in interest rates may affect
the amount and timing of cash flows.

We manage our asset and liability cash flow match and our asset and liability
duration match to manage interest rate risk. We may redistribute investments
among our different lines of business, when necessary, to adjust the cash flow
and/or duration of the asset portfolios to better match the cash flow and
duration of the liability portfolios. Asset and liability portfolio modeling is
updated on a quarterly basis and is used as part of the overall interest rate
risk management strategy. Cash flows from the in-force asset and liability
portfolios are projected at current interest rate levels and at levels
reflecting an increase and a decrease in interest rates to obtain a range of
projected cash flows under the different interest rate scenarios. These results
enable us to assess the impact of projected changes in cash flows and duration
resulting from potential changes in interest rates. Testing the asset and
liability portfolios under various interest rate scenarios enables us to choose
what we believe to be the most appropriate investment strategy, as well as to
limit the risk of disadvantageous outcomes. Although we test the asset and
liability portfolios under various interest rate scenarios as part of our
modeling, the majority of our liabilities related to insurance contracts are not
interest rate sensitive, and we therefore have minimal exposure to policy
withdrawal risk. Our determination of investment strategy relies on long-term
measures such as reserve adequacy analysis and the relationship between the
portfolio yields supporting our various product lines and the aggregate discount
rate assumptions embedded in the reserves. We also use this analysis in
determining hedging strategies and utilizing derivative financial instruments
for managing interest rate risk and the risk related to matching duration for
our assets and liabilities. We do not use derivative financial instruments for
speculative purposes.

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.

Closed Block Individual Disability Reinsurance Agreement

As part of the second phase of the Closed Block individual disability
reinsurance agreement entered into in December 2020 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 we 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 the first quarter of 2021. After
the transfer of these fixed maturity securities, the overall credit profile of
our remaining portfolio has not changed. See "Executive Summary" for further
information on the reinsurance transaction contained herein in this Item 2.
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COVID-19

During 2020, economic conditions increased volatility in the capital markets and
caused significant pressure on the profitability of many companies. Our fixed
income exposure to consumer cyclicals, which had been stressed due to COVID-19
related shutdowns, is approximately 3.7 percent of our fixed maturity security
portfolio. Our exposure to other stressed industries such as airlines and
restaurants is minimal at 0.2 percent and 0.3 percent of our portfolio,
respectively. We had net downgrades of investment-grade securities to high yield
or below investment grade in the first nine months of 2021 of $51.6 million. The
downgrades that occurred in 2021 did not have a significant impact to our below
investment grade investments as a percent of our total investment portfolio as
our holdings of below-investment-grade securities decreased from 6.7 percent at
December 31, 2020 to 6.0 percent at September 30, 2021 on a fair value basis.

We continue to monitor capital market activity on a regular basis and to the
extent that we experience volatility and ratings downgrades related to the
issuers of our fixed maturity securities again, 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. Net investment income may
decline, as the sustained low interest rate environment will continue to impact
the yield on our invested assets, particularly related to the investment of new
cash flows. For further discussion, see "Fixed Maturity Securities" contained
herein in this Item 2.

See "Executive Summary" for further information on the impact from COVID-19
contained herein in this Item 2.

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 September 30, 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           Unrealized
          Classification                   Fair Value              Gain                Loss                  Loss                 Gain                 Gain
Basic Industry                            $  3,240.4          $     385.4          $    209.0          $         4.2          $  3,031.4          $     389.6
Capital Goods                                3,991.7                569.0               262.3                    4.7             3,729.4                573.7
Communications                               2,774.2                472.3               156.3                    4.1             2,617.9                476.4
Consumer Cyclical                            1,624.7                190.4               188.5                    6.5             1,436.2                196.9
Consumer Non-Cyclical                        7,093.5              1,083.1               438.5                   15.6             6,655.0              1,098.7
Energy                                       3,587.6                598.4                86.5                    4.2             3,501.1                602.6
Financial Institutions                       3,873.0                402.5               436.4                   10.4             3,436.6                412.9
Mortgage/Asset-Backed                          689.6                 61.1                 0.6                    0.1               689.0                 61.2
Sovereigns                                   1,161.1                221.2               110.9                    7.2             1,050.2                228.4
Technology                                   1,848.5                156.0               162.1                    3.7             1,686.4                159.7
Transportation                               2,050.3                255.1                94.0                    2.7             1,956.3                257.8
U.S. Government Agencies and
Municipalities                               5,164.3                683.4               636.2                   12.5             4,528.1                695.9
Public Utilities                             6,529.4              1,195.4               285.4                   10.8             6,244.0              1,206.2
Total                                     $ 43,628.3          $   6,273.3          $  3,066.7          $        86.7          $ 40,561.6          $   6,360.0


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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 September 30, 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 September 30, 2021. The increase in the unrealized loss on
fixed maturity securities during the third quarter of 2021 was due primarily to
an 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
                                           September 30           June 30            March 31           December 31          September 30
Fair Value < 100% >= 70% of Amortized
Cost

<= 90 days                                $       42.8          $     6.1          $   122.1          $        3.8          $       10.1
> 90 <= 180 days                                   0.2               30.2                6.1                   3.9                   4.7
> 180 <= 270 days                                 26.3                3.0               10.4                   1.5                  14.9
> 270 days <= 1 year                               1.4                3.0                2.1                   6.4                   0.7
> 1 year <= 2 years                                3.9                2.2                6.9                   0.1                   2.3
> 2 years <= 3 years                                 -                  -                2.3                   2.3                     -

Total                                     $       74.6          $    44.5          $   149.9          $       18.0          $       32.7




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

<= 90 days                                $        0.4          $     0.3          $     3.9          $        4.0          $        13.8
> 90 <= 180 days                                     -                2.4                3.8                     -                    4.5
> 180 <= 270 days                                  2.0                2.9                  -                   1.6                   40.0
> 270 days <= 1 year                               2.1                  -                  -                   7.8                    0.2
> 1 year <= 2 years                                2.6                2.8                5.8                   1.9                    6.4
> 2 years <= 3 years                               0.2                  -                0.4                   5.0                    4.1
> 3 years                                          4.8                7.2                8.5                   7.4                    8.1
Sub-total                                         12.1               15.6               22.4                  27.7                   77.1

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


> 180 <= 270 days                                    -                  -                  -                     -                    1.0
> 270 days <= 1 year                                 -                  -                  -                     -                    3.8
> 1 year <= 2 years                                  -                  -                5.4                  10.2                    9.8
> 2 years <= 3 years                                 -                  -                  -                     -                    8.1
> 3 years                                            -                  -                  -                     -                   13.8
Sub-total                                            -                  -                5.4                  10.2                   36.5

Total                                     $       12.1          $    15.6          $    27.8          $       37.9          $       113.6

At September 30, 2021, we held no fixed maturity securities with a gross
unrealized loss greater than $10.0 million.

We had no individual realized investment losses of $10.0 million or greater from
credit losses or sales of fixed maturity securities during the third quarter or
first nine months of 2021. We had no individual realized investment losses of
$10.0 million or greater from sales of fixed maturity securities in the third
quarter or first nine months of 2020.

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.

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During the remainder of 2020, we did not experience any credit losses exceeding
$10 million.

As of September 30, 2021, the amortized cost net of allowance for credit losses
and fair value of our below-investment-grade fixed maturity securities was
$2,826.3 million and $3,092.2 million, respectively. 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 $2,499.4 million and
$2,432.1 million at September 30, 2021 and December 31, 2020, respectively. Our
investments in mortgage loans are carried at amortized cost less an allowance
for expected credit losses which was $11.3 million and $13.1 million at
September 30, 2021 and December 31, 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 September 30, 2021 or December 31, 2020. See Note 4 in the "Notes to
Consolidated Financial Statements" contained herein in Item 1 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 $903.2
million and $747.5 million at September 30, 2021 and December 31, 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 $38.3 million and $126.1 million for the partnerships in the third
quarter and first nine months of 2021, 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 $779.3 million of commitments for
additional investments in the partnerships at September 30, 2021 which may or
may not be funded. See Note 3 in the "Notes to Consolidated Financial
Statements" contained herein in Item 1 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 $0.6 million at September 30, 2021. We held $22.4
million of net cash collateral from our counterparties at September 30, 2021.
The carrying value of fixed maturity securities posted as collateral to our
counterparties was $30.0 million at September 30, 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 September 30,
2021 and December 31, 2020, respectively.

For further information see "Investments" in Part I, Item 1 and "Critical
Accounting Estimates" and "Investments" in Part II, Item 7 of our annual report
on Form 10-K for the year ended December 31, 2020, and Notes 3, 4, and 5 of the
"Notes to Consolidated Financial Statements" contained herein in Item 1.

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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 existing credit facilities, as needed.  As
of September 30, 2021, Unum Group and our intermediate holding companies had
available holding company liquidity of $1,638 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. On October 25, 2021, our board of directors
authorized the repurchase of up to $250.0 million of Unum Group's outstanding
common stock through December 31, 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. We
intend to execute an accelerated stock repurchase agreement to repurchase $50.0
million of the Company's common stock during the fourth quarter of 2021.

Liquidity and Capital Resource Considerations - COVID-19

We have strengthened our liquidity position through actions such as maintaining
a higher level of short-term investments and posting additional collateral from
certain of our U.S. insurance subsidiaries to the regional FHLBs. As a result,
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.

As of September 30, 2021, we have borrowed $261.0 million of funds through our
memberships with the regional FHLBs and those funds are used for the purpose of
investing in either short-term investments or fixed maturity securities and have
additional borrowing capacity of approximately $927 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
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.
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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, 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 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 connection with the second phase of the reinsurance transaction, Commonwealth
paid a total ceding commission to the ceding companies of $18.2 million. The
ceding companies transferred assets of $767.0 million, which consisted primarily
of cash and fixed maturity securities. 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 "Executive Summary" contained here in this Item 2 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 realized investment 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.

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 September 30, 2021 are in
line with our expectations and are significantly above the level that would
require state regulatory action.

In connection with a financial examination of Unum America, which closed at the
end of the second quarter of 2020, the Maine Bureau of Insurance (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 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. The 2020 phase-in amount was $229
million and was funded using cash flows from operations. The 2021 phase-in
amount will be calculated and recorded in the fourth quarter of 2021. In
addition to the phase-in amount, we also expect to accelerate the recognition of
the premium deficiency reserves by an incremental amount of $250 million by
December 31, 2022. This strengthening will be incorporated by using explicitly
agreed upon margins into our existing assumptions for annual statutory reserve
adequacy testing. These actions will 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.

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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, a 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.

During 2021, we intend to maintain a level of capital in our insurance
subsidiaries above the applicable capital adequacy requirements and minimum
solvency margins.

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

During the nine months ended September 30, 2021, we made contributions of $47.4
million and £2.7 million to our U.S. and U.K. defined contribution plans,
respectively, and expect to make additional contributions of approximately $19
million and £1 million during the remainder of 2021. We made no contributions to
our U.S. and U.K. qualified defined benefit pension plans during the nine months
ended September 30, 2021. We do not expect to make any further contributions to
either plan during 2021. 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.

Debt

Our long-term debt balance at September 30, 2021 was $3,441.4 million, net of
deferred debt issuance costs of $35.4 million, and consisted primarily of
unsecured senior notes and junior subordinated debt securities.

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.

Also 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.

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 September 30,
2021, letters of credit totaling $0.4 million had been issued from this credit
facility, but there were no borrowed amounts outstanding.
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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. Borrowings under the credit facility are subject to financial
covenants, negative covenants, and events of default that are customary. The
credit facility provides for borrowings at an interest rate based either on the
prime rate or federal funds rate.

There are no significant financial covenants associated with any of our
outstanding debt obligations. We continually monitor our compliance with our
debt covenants and remain in compliance. Our credit facilities include financial
covenants that place limitations on our leverage ratio and consolidated net
worth. The credit facilities also include covenants that limit subsidiary
indebtedness. We have not observed any current trends that would cause a breach
of any of our debt or credit facility covenants. See "Debt" and Note 8 of the
"Notes to Consolidated Financial Statements" contained in Part II, Items 7 and
8, respectively, of our annual report on Form 10-K for the year ended
December 31, 2020 for further discussion.

Commitments

At September 30, 2021, we had unfunded unconditional commitments of $0.7 million
to fund tax credit partnership investments and $12.6 million to fund the
purchase of transferable state tax credits. These commitments are recognized as
liabilities in our consolidated balance sheets, with a corresponding recognition
of other long-term investments and other assets, respectively. In addition, we
had commitments of $99.0 million to fund certain investments in private
placement fixed maturity securities and $779.3 million to fund certain private
equity partnerships. As of September 30, 2021, we had $70.5 million of
commercial mortgage loan commitments.

With respect to our commitments and off-balance sheet arrangements, see the
discussion under "Commitments" in Part II, Item 7 of our annual report on Form
10-K for the year ended December 31, 2020. During the first nine months of 2021,
there were no substantive changes in our commitments, contractual obligations,
or other off-balance sheet arrangements other than the changes noted herein.

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 September 30, 2021, we held $105.1 million of cash collateral
from securities lending agreements. The average cash collateral balance during
the first nine months of 2021 was $70.4 million, and the maximum amount
outstanding at any month end was $108.5 million. As of September 30, 2021, we
held $160.0 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 these off-balance sheet transactions during the
first nine months of 2021 was $162.9 million, and the maximum amount outstanding
at any month end was $186.9 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 September 30, 2021, nor did we utilize any repurchase agreements
during the first nine months of 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 FHLBs. As of
September 30, 2021, we owned $23.8 million of FHLB common stock and had
outstanding advances of $261.0 million from the regional FHLBs.

See Note 4 of the "Notes to Consolidated Financial Statements" contained herein
in Item 1 for further information.

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