AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of Unum Insurance Group. These companies are the core U.S. life/health (L/H) insurance subsidiaries of Unum Group (Unum) (headquartered in Chattanooga, TN) [NYSE: UNM]. In addition, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the Long-Term Issue Credit Ratings (Long-Term IR) of Unum. The outlook of these Credit Ratings (ratings) is stable. (See below for a complete listing of the L/H subsidiaries and the Long-Term IRs.)

The ratings reflect Unum’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

The group maintains the strongest level risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), favorable liquidity and improved financial flexibility. Unum conservatively manages its investment portfolio and has historically performed well with higher yields than industry benchmarks.

Unum uses reinsurance to strategically manage its balance sheet risk and has continued to execute transactions both internally and externally to reduce its exposure to legacy long-term care business. AM Best notes that Unum has a heavy reliance on reinsurance; however, the company has used its high-quality reinsurance partners to de-risk its balance sheet and does so in conjunction with its hedging program in mitigating interest rate sensitivity.

The group continues to report strong operating performance metrics and has maintained a favorable business profile year over year. Improved investment income in each of the last three years has contributed to the group’s overall earnings as it continues to report favorable income. AM Best will continue to monitor Unum’s reserve adequacy on its closed block of long-term care business, which if not managed well could have a material impact on Unum’s balance sheet strength and could also impact its income statement.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with stable outlooks for the following life/health subsidiaries of Unum Group:

• Unum Life Insurance Company of America
• Unum Insurance Company
• Provident Life and Accident Insurance Company
• The Paul Revere Life Insurance Company
• Colonial Life & Accident Insurance Company
• First Unum Life Insurance Company
• Provident Life and Casualty Insurance Company
• Starmount Life Insurance Company

The following Long-Term IRs have been affirmed with stable outlooks:

Unum Group—

- “bbb+” (Good) on $275 million 3.875% senior unsecured notes, due 2025

- “bbb+” (Good) on $250 million 6.75% senior unsecured notes, due 2028

- “bbb+” (Good) on $200 million 7.25% senior unsecured notes, due 2028

- “bbb+” (Good) on $400 million 4.00% senior unsecured notes, due 2029

- “bbb+” (Good) on $250 million 7.375% senior unsecured notes, due 2032

- “bbb+” (Good) on $250 million 5.75% senior unsecured notes, due 2042

- “bbb+” (Good) on $250 million 5.75% senior unsecured notes, due 2042

- “bbb+” (Good) on $450 million 4.50% senior unsecured notes, due 2049

- “bbb+” (Good) on $600 million 4.125% senior unsecured bonds, due 2051

- “bbb+” (Good) on $400 million 6.0% senior unsecured notes, due 2054

- “bbb-” (Good) on $300 million 6.25% junior subordinated notes, due 2058

Provident Financing Trust I—

- “bbb-” (Good) on $300 million 7.405% capital securities, due 2038

The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:

Unum Group—

- “bbb+” (Good) on senior unsecured

- “bbb” (Good) on subordinated

- “bbb-” (Good) on preferred stock

Unum Group Financing Trust I and II—

- “bbb-” (Good) on preferred securities

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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