STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY ASSETS Current Statement Date 4 1 2 3 December 31 Net Admitted Assets Prior Year Net Assets Nonadmitted Assets (Cols. 1 - 2) Admitted Assets 1. Bonds 3,057,054,064 3,057,054,064 2,966,286,248 2. Stocks: 2.1 Preferred stocks 2.2 Common stocks 3. Mortgage loans on real estate: 3.1 First liens 175,544,080 175,544,080 175,273,400 3.2 Other than first liens 4. Real estate: 4.1 Properties occupied by the company (less $ encumbrances) 4.2 Properties held for the production of income (less $ encumbrances) 4.3 Properties held for sale (less $ encumbrances) 5. Cash ($ (6,292,683) ), cash equivalents ($ 10,011,840 ) and short-term investments ($ 0 ) 3,719,157 3,719,157 1,445,393 6. Contract loans (including $ 0 premium notes) 3,520,991 3,520,991 3,709,412 7. Derivatives 8. Other invested assets 14,963,437 14,963,437 14,962,896 9. Receivables for securities 35,539 35,539 0 10. Securities lending reinvested collateral assets 2,626,125 2,626,125 3,890,413 11. Aggregate write-ins for invested assets 12. Subtotals, cash and invested assets (Lines 1 to 11) 3,257,463,394 3,257,463,394 3,165,567,762 13. Title plants less $ charged off (for Title insurers only) 14. Investment income due and accrued 42,139,742 42,139,742 36,773,657 15. Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection 24,998,939 2,768,722 22,230,217 22,408,099 15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $ earned but unbilled premiums) 733,644 733,644 419,703 15.3 Accrued retrospective premiums ($ ) and contracts subject to redetermination ($ ) 16. Reinsurance: 16.1 Amounts recoverable from reinsurers 2,191,878 2,191,878 1,429,351 16.2 Funds held by or deposited with reinsured companies 16.3 Other amounts receivable under reinsurance contracts 1,823,694 1,823,694 1,698,179 17. Amounts receivable relating to uninsured plans 433,846 52,829 381,017 283,281 18.1 Current federal and foreign income tax recoverable and interest thereon 18.2 Net deferred tax asset 302,954,913 278,880,456 24,074,457 24,260,163 19. Guaranty funds receivable or on deposit 477,137 477,137 814,342 20. Electronic data processing equipment and software 21. Furniture and equipment, including health care delivery assets ($ ) 22. Net adjustment in assets and liabilities due to foreign exchange rates 23. Receivables from parent, subsidiaries and affiliates 0 0 4,342,390 24. Health care ($ ) and other amounts receivable 1,715,560 1,715,560 0 0 25. Aggregate write-ins for other than invested assets 984,731 841,450 143,281 2,080,524 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) 3,635,917,478 284,259,017 3,351,658,461 3,260,077,450 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 854,216 854,216 767,484 28. Total (Lines 26 and 27) 3,636,771,694 284,259,017 3,352,512,677 3,260,844,934 DETAILS OF WRITE-INS 1101. 1102. 1103. 1198. Summary of remaining write-ins for Line 11 from overflow page 1199. Totals (Lines 1101 through 1103 plus 1198)(Line 11 above) 2501. Other miscellaneous assets 862,574 841,450 21,125 2,026,247 2502. Receivable for investment income 122,156 122,156 54,277 2503. 2598. Summary of remaining write-ins for Line 25 from overflow page 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 984,731 841,450 143,281 2,080,524
2 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31 Statement Date Prior Year 1. Aggregate reserve for life contracts $ 81,591,874 less $ 0 included in Line 6.3 (including $ 0 Modco Reserve) 81,591,874 81,070,296 2. Aggregate reserve for accident and health contracts (including $ 0 Modco Reserve) 2,766,071,945 2,696,427,205 3. Liability for deposit-type contracts (including $ Modco Reserve) 23,519,200 26,834,538 4. Contract claims: 4.1 Life 15,526,544 14,880,609 4.2 Accident and health 90,865,633 92,361,426 5. Policyholders’ dividends $ and coupons $ due and unpaid 6. Provision for policyholders’ dividends and coupons payable in following calendar year - estimated amounts: 6.1 Dividends apportioned for payment (including $ Modco) 6.2 Dividends not yet apportioned (including $ Modco) 6.3 Coupons and similar benefits (including $ Modco) 7. Amount provisionally held for deferred dividend policies not included in Line 6 8. Premiums and annuity considerations for life and accident and health contracts received in advance less $ 0 discount; including $ 3,227,155 accident and health premiums 3,867,188 4,001,998 9. Contract liabilities not included elsewhere: 9.1 Surrender values on canceled contracts 9.2 Provision for experience rating refunds, including the liability of $ 46,214 accident and health experience rating refunds of which $ 0 is for medical loss ratio rebate per the Public Health Service Act 293,171 49,497 9.3 Other amounts payable on reinsurance, including $ 0 assumed and $ 1,156,933 ceded 1,156,933 1,857,186 9.4 Interest Maintenance Reserve 561,700 663,890 10. Commissions to agents due or accrued-life and annuity contracts $ 362,832 , accident and health $ 2,234,285 and deposit-type contract funds $ 0 2,597,117 3,385,353 11. Commissions and expense allowances payable on reinsurance assumed 2,530 1,644 12. General expenses due or accrued 13. Transfers to Separate Accounts due or accrued (net) (including $ accrued for expense allowances recognized in reserves, net of reinsured allowances) 14. Taxes, licenses and fees due or accrued, excluding federal income taxes 1,954,263 1,260,558 15.1 Current federal and foreign income taxes, including $ (2,811,039) on realized capital gains (losses) 3,357,189 6,705,973 15.2 Net deferred tax liability 16. Unearned investment income 100,382 117,365 17. Amounts withheld or retained by company as agent or trustee 138,520 183,546 18. Amounts held for agents' account, including $ agents' credit balances 19. Remittances and items not allocated 3,032,929 6,631,177 20. Net adjustment in assets and liabilities due to foreign exchange rates 21. Liability for benefits for employees and agents if not included above 22. Borrowed money $ and interest thereon $ 23. Dividends to stockholders declared and unpaid 24. Miscellaneous liabilities: 24.01 Asset valuation reserve 36,206,206 35,278,190 24.02 Reinsurance in unauthorized and certified ($ ) companies 384,456 185,128 24.03 Funds held under reinsurance treaties with unauthorized and certified ($ ) reinsurers 24.04 Payable to parent, subsidiaries and affiliates 611,521 0 24.05 Drafts outstanding 24.06 Liability for amounts held under uninsured plans 24.07 Funds held under coinsurance 24.08 Derivatives 24.09 Payable for securities 8,117,847 0 24.10 Payable for securities lending 2,626,125 3,890,413 24.11 Capital notes $ and interest thereon $ 25. Aggregate write-ins for liabilities 2,174,322 1,921,782 26. Total liabilities excluding Separate Accounts business (Lines 1 to 25) 3,044,757,596 2,977,707,774 27. From Separate Accounts Statement 854,216 767,484 28. Total liabilities (Lines 26 and 27) 3,045,611,813 2,978,475,258 29. Common capital stock 2,000,000 2,000,000 30. Preferred capital stock 31. Aggregate write-ins for other than special surplus funds 45,396 69,803 32. Surplus notes 33. Gross paid in and contributed surplus 678,435,244 678,435,244 34. Aggregate write-ins for special surplus funds 35. Unassigned funds (surplus) (373,579,775) (398,135,370) 36. Less treasury stock, at cost: 36.1 shares common (value included in Line 29 $ ) 36.2 shares preferred (value included in Line 30 $ ) 37. Surplus (Total Lines 31+32+33+34+35-36) (including $ in Separate Accounts Statement) 304,900,865 280,369,677 38. Totals of Lines 29, 30 and 37 306,900,865 282,369,677 39. Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3) 3,352,512,677 3,260,844,934 DETAILS OF WRITE-INS 2501. Liability for unclaimed property 2,174,322 1,921,782 2502. 2503. 2598. Summary of remaining write-ins for Line 25 from overflow page 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 2,174,322 1,921,782 3101. Deferred gain on reinsurance transactions 45,396 69,803 3102. 3103. 3198. Summary of remaining write-ins for Line 31 from overflow page 3199. Totals (Lines 3101 through 3103 plus 3198)(Line 31 above) 45,396 69,803 3401. 3402. 3403. 3498. Summary of remaining write-ins for Line 34 from overflow page 3499. Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)
3 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SUMMARY OF OPERATIONS 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31 1. Premiums and annuity considerations for life and accident and health contracts 296,504,484 281,250,508 375,663,301 2. Considerations for supplementary contracts with life contingencies 3. Net investment income 125,010,292 125,062,515 168,264,185 4. Amortization of Interest Maintenance Reserve (IMR) (225,124) (242,574) (313,824) 5. Separate Accounts net gain from operations excluding unrealized gains or losses 6. Commissions and expense allowances on reinsurance ceded 3,098,590 4,068,154 5,289,641 7. Reserve adjustments on reinsurance ceded 8. Miscellaneous Income: 8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts 0 0 8,745 8.2 Charges and fees for deposit-type contracts 8.3 Aggregate write-ins for miscellaneous income 3,220,389 2,566,530 3,506,576 9. Totals (Lines 1 to 8.3) 427,608,630 412,705,134 552,418,623 10. Death benefits 22,694,776 24,777,784 30,623,796 11. Matured endowments (excluding guaranteed annual pure endowments) 12. Annuity benefits 13. Disability benefits and benefits under accident and health contracts 213,025,938 209,238,796 278,543,852 14. Coupons, guaranteed annual pure endowments and similar benefits 15. Surrender benefits and withdrawals for life contracts 1,223,825 1,285,020 1,559,166 16. Group conversions (1,300) (1,410) (1,910) 17. Interest and adjustments on contract or deposit-type contract funds 186,900 231,910 264,134 18. Payments on supplementary contracts with life contingencies 177,278 218,694 290,695 19. Increase in aggregate reserves for life and accident and health contracts 70,166,319 21,478,531 17,583,769 20. Totals (Lines 10 to 19) 307,473,735 257,229,325 328,863,502 21. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct business only) 29,307,449 27,127,290 36,413,417 22. Commissions and expense allowances on reinsurance assumed 168,174 126,446 179,360 23. General insurance expenses 42,062,983 38,602,928 51,855,886 24. Insurance taxes, licenses and fees, excluding federal income taxes 11,113,263 7,738,085 9,999,101 25. Increase in loading on deferred and uncollected premiums 798,268 322,221 49,205 26. Net transfers to or (from) Separate Accounts net of reinsurance (19,485) (27,033) (28,341) 27. Aggregate write-ins for deductions 800 33 38 28. Totals (Lines 20 to 27) 390,905,186 331,119,295 427,332,167 29. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28) 36,703,444 81,585,839 125,086,456 30. Dividends to policyholders 31. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30) 36,703,444 81,585,839 125,086,456 32. Federal and foreign income taxes incurred (excluding tax on capital gains) 11,086,324 26,394,279 41,758,640 33. Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32) 25,617,120 55,191,560 83,327,816 34. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $ 61,299 (excluding taxes of $ (176,247) transferred to the IMR) (61,298) (314,397) (915,640) 35. Net income (Line 33 plus Line 34) 25,555,822 54,877,163 82,412,176 CAPITAL AND SURPLUS ACCOUNT 36. Capital and surplus, December 31, prior year 282,369,677 263,475,337 263,475,337 37. Net income (Line 35) 25,555,822 54,877,163 82,412,176 38. Change in net unrealized capital gains (losses) less capital gains tax of $ 39. Change in net unrealized foreign exchange capital gain (loss) 40. Change in net deferred income tax (781,008) 20,176,010 35,344,025 41. Change in nonadmitted assets 908,126 (20,520,453) (35,940,958) 42. Change in liability for reinsurance in unauthorized and certified companies (199,328) 26,905 (13,161) 43. Change in reserve on account of change in valuation basis, (increase) or decrease 0 (60,000,000) (100,000,000) 44. Change in asset valuation reserve (928,016) (4,011,403) (2,864,351) 45. Change in treasury stock 46. Surplus (contributed to) withdrawn from Separate Accounts during period 47. Other changes in surplus in Separate Accounts Statement 48. Change in surplus notes 49. Cumulative effect of changes in accounting principles 50. Capital changes: 50.1 Paid in 50.2 Transferred from surplus (Stock Dividend) 50.3 Transferred to surplus 51. Surplus adjustment: 51.1 Paid in 0 0 40,000,000 51.2 Transferred to capital (Stock Dividend) 51.3 Transferred from capital 51.4 Change in surplus as a result of reinsurance (24,407) (32,544) (43,392) 52. Dividends to stockholders 53. Aggregate write-ins for gains and losses in surplus 54. Net change in capital and surplus for the year (Lines 37 through 53) 24,531,188 (9,484,321) 18,894,340 55. Capital and surplus, as of statement date (Lines 36 + 54) 306,900,865 253,991,015 282,369,677 DETAILS OF WRITE-INS 08.301. Fees related to Family Medical Leave Act administration 2,157,307 1,709,698 2,354,521 08.302. Other income 1,063,082 856,832 1,152,054 08.303. 08.398. Summary of remaining write-ins for Line 8.3 from overflow page 08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above) 3,220,389 2,566,530 3,506,576 2701. Fines and penalties paid to regulatory authorities 800 33 38 2702. 2703. 2798. Summary of remaining write-ins for Line 27 from overflow page 2799. Totals (Lines 2701 through 2703 plus 2798)(Line 27 above) 800 33 38 5301. 5302. 5303. 5398. Summary of remaining write-ins for Line 53 from overflow page 5399. Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)
4 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY CASH FLOW 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31
Cash from Operations
1. Premiums collected net of reinsurance 296,049,241 279,065,158 372,262,874
2. Net investment income 110,697,389 112,865,908 155,683,578
3. Miscellaneous income 6,169,056 6,526,266 8,828,757
4. Total (Lines 1 to 3) 412,915,686 398,457,332 536,775,209
5. Benefit and loss related payments 239,467,082 230,854,474 307,042,086
6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts (19,485) (27,033) (28,341)
7. Commissions, expenses paid and aggregate write-ins for deductions 80,811,066 74,365,272 99,926,687
8. Dividends paid to policyholders 9. Federal and foreign income taxes paid (recovered) net of $ 1,358,922 tax on capital
gains (losses) 14,320,160 30,884,380 39,215,797
10. Total (Lines 5 through 9) 334,578,823 336,077,092 446,156,229
11. Net cash from operations (Line 4 minus Line 10) 78,336,863 62,380,240 90,618,980
Cash from Investments
12. Proceeds from investments sold, matured or repaid:
12.1 Bonds 147,377,966 170,162,588 225,295,230
12.2 Stocks
12.3 Mortgage loans 8,904,320 23,242,360 27,454,110
12.4 Real estate
12.5 Other invested assets
12.6 Net gains or (losses) on cash, cash equivalents and short-term investments
12.7 Miscellaneous proceeds 9,346,595 0 4,519,768
12.8 Total investment proceeds (Lines 12.1 to 12.7) 165,628,881 193,404,948 257,269,107
13. Cost of investments acquired (long-term only):
13.1 Bonds 229,787,928 208,725,591 311,006,392
13.2 Stocks
13.3 Mortgage loans 9,175,000 54,550,000 54,550,000
13.4 Real estate
13.5 Other invested assets
13.6 Miscellaneous applications 0 1,663,226 0
13.7 Total investments acquired (Lines 13.1 to 13.6) 238,962,928 264,938,818 365,556,392
14. Net increase (or decrease) in contract loans and premium notes (188,421) (255,582) (272,155)
15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14) (73,145,625) (71,278,287) (108,015,130)
Cash from Financing and Miscellaneous Sources
16. Cash provided (applied):
16.1 Surplus notes, capital notes
16.2 Capital and paid in surplus, less treasury stock 0 0 40,000,000
16.3 Borrowed funds 0 15,200,000 0
16.4 Net deposits on deposit-type contracts and other insurance liabilities (3,468,307) (7,873,300) (7,856,691)
16.5 Dividends to stockholders
16.6 Other cash provided (applied) 550,833 (1,208,335) (7,842,966)
17. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 plus Line 16.6) (2,917,474) 6,118,365 24,300,344
RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) 2,273,764 (2,779,682) 6,904,194
19. Cash, cash equivalents and short-term investments:
19.1 Beginning of year 1,445,393 (5,458,801) (5,458,801)
19.2 End of period (Line 18 plus Line 19.1) 3,719,157 (8,238,483) 1,445,393
Note: Supplemental disclosures of cash flow information for non-cash transactions: 20.0001. Schedule D Bonds Exchanged 5,006,610 10,910,345 21,151,508
5 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY EXHIBIT 1
DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31
1. Industrial life
2. Ordinary life insurance 7,650,078 6,512,604 8,198,096
3. Ordinary individual annuities
4. Credit life (group and individual)
5. Group life insurance 67,602,420 58,749,328 78,560,101
6. Group annuities
7. A & H - group 178,484,700 178,377,203 238,453,511
8. A & H - credit (group and individual)
9. A & H - other 78,559,589 78,435,539 104,932,537
10. Aggregate of all other lines of business
11. Subtotal 332,296,788 322,074,674 430,144,245
12. Deposit-type contracts 2,250 3,050 105,527
13. Total 332,299,038 322,077,724 430,249,772
DETAILS OF WRITE-INS
1001.
1002.
1003.
1098. Summary of remaining write-ins for Line 10 from overflow page
1099. Totals (Lines 1001 through 1003 plus 1098)(Line 10 above)
6
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies and Going Concern
A. Accounting Practices
The financial statements of First Unum Life Insurance Company (the Company) have been completed in accordance with Statutory Accounting Principles (SAP) prescribed in the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures manual. The New York State Department of Financial Services (the Department) has adopted no accounting practices that differ materially from SAP.
SSAP # F/S Page F/S Line # 9/30/2017 12/31/2016 NET INCOME
(1) The Company's state basis (Page 4, Line 35, Columns 1 & 3) XXX XXX XXX $ 25,555,822 $ 82,412,176
(2) State Prescribed Practices that increase/(decrease) NAIC SAP — —
(3) State Permitted Practices that increase/(decrease) NAIC SAP — —
(4) NAIC SAP (1 -2-3=4) XXX XXX XXX $ 25,555,822 $ 82,412,176
SURPLUS
(5) The Company's state basis (Page 3, Line 38, Columns 1 & 2) XXX XXX XXX $ 306,900,865 $ 282,369,677
(6) State Prescribed Practices that increase/(decrease) NAIC SAP — —
(7) State Permitted Practices that increase/(decrease) NAIC SAP — —
(8) NAIC SAP (5 -6-7=8) XXX XXX XXX $ 306,900,865 $ 282,369,677
B. Use of Estimates in the Preparation of the Financial Statements
No significant change
C. Accounting Policy
(1) No significant change
(2) No significant change
(3) No significant change
(4) No significant change
(5) No significant change
(6) Loan-backed and structured securities are stated at either amortized cost or the lower of amortized cost or fair value. Amortization of mortgage-backed and loan-backed securities considers the estimated timing and amount of prepayments of the underlying loans at the date of purchase. Actual prepayment experience is periodically reviewed with significant changes in estimated cash flows from the original purchase assumptions accounted for using the retrospective method.
(7) No significant change
(8) No significant change
(9) No significant change
(10) No significant change
7
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
(11) No significant change
(12) No significant change
(13) No significant change
D. Going Concern
Not applicable
2. Accounting Changes and Corrections of Errors
Not applicable
3. Business Combinations and Goodwill
No significant change
4. Discontinued Operations
No significant change
5. Investments
A. No significant change
B. No significant change
C. No significant change
D. Loan-Backed Securities
(1) Prepayment assumptions for loan-backed/mortgage-backed securities and structured securities were obtained from broker dealer survey values and internal estimates.
(2) Not applicable
(3) Not applicable
(4) As of September 30, 2017, impaired securities (fair value is less than cost or amortized cost) for which an other-than- temporary impairment had not been recognized in earnings as a realized loss (including securities with a recognized other- than-temporary impairment for non-interest related declines when a non-recognized interest related impairment remains) are as follows:
a. The aggregate amount of unrealized losses: 1. Less than 12 months $ 62,902 2. 12 months or longer $ —
b. The aggregate related fair value of securities with unrealized losses: 1. Less than 12 months $ 18,172,994 2. 12 months or longer $ —
(5) In determining when a decline in fair value below amortized cost of a security is other than temporary, the Company evaluates the following factors:
• Whether the Company expects to recover the entire amortized cost basis of the security. • Whether the Company intends to sell the security or will be required to sell the security before the recovery of its amortized cost basis. • Whether the security is current as to principal and interest payments. • The significance of the decline in value.
7.1
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
• The time period during which there has been a significant decline in value. • Current and future business prospects and trends of earnings. • The valuation of the security’s underlying collateral. • Relevant industry conditions and trends relative to their historical cycles. • Market conditions. • Rating agency and governmental actions. • Bid and offering prices and the level of trading activity. • Adverse changes in estimated cash flows for securitized investments. • Changes in fair value subsequent to the balance sheet date. • Any other key measures for the related security.
The Company evaluates available information, including the factors noted above, both positive and negative, in reaching its conclusions. In particular, the Company also considers the strength of the issuer’s balance sheet, its debt obligations and near term funding requirements, cash flow and liquidity, the profitability of its core businesses, the availability of marketable assets which could be sold to increase liquidity, its industry fundamentals and regulatory environment, and its access to capital markets. Although available and applicable factors are considered in the analysis, the expectation of recovering the entire amortized cost basis of the security, whether the Company intends to sell the security, whether it is more likely than not the Company will be required to sell the security before recovery of its amortized cost, and whether the security is current on principal and interest payments are the most critical factors in determining whether impairments are other than temporary. The significance of the decline in value and the length of time during which there has been a significant decline are also important factors, but the Company does not record an impairment loss based solely on these two factors, since often other factors will impact the evaluation of a security.
While determining other-than-temporary impairments is a judgmental area, the Company utilizes a formal, well-defined, and disciplined process to monitor and evaluate its investments, supported by issuer specific research and documentation as of the end of each period. The process results in a thorough evaluation of problem investments and the recording of realized losses on a timely basis for investments determined to have an other-than-temporary impairment.
E. Repurchase Agreements and/or Securities Lending Agreements
(1) No significant change
(2) No significant change
(3) a. No significant change
b. As of September 30, 2017, and December 31, 2016, the aggregate fair value of cash collateral received from securities lending transactions was $2,626,125 and $3,890,413, respectively. The Company reinvests this cash collateral into higher yielding securities. The Company has not sold or repledged any securities collateral received from securities lending transactions.
c. No significant change
(4) No significant change
(5) No significant change
(6) No significant change
(7) No significant change
F. No significant change
G. No significant change
H. No significant change
I. Not applicable
J. Not applicable
K. No significant change
L. No significant change
7.2
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
6. Joint Ventures, Partnerships and Limited Liability Companies
No significant change
7. Investment Income
No significant change
8. Derivative Instruments
No significant change
9. Income Taxes
No significant change
10. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties
No significant change
11. Debt
A. Not applicable
B. Not applicable
12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans
The Company purchases services from its affiliates in accordance with an intercompany cost sharing arrangement. There is no material obligation on the part of the Company beyond the amounts paid as part of the cost of services purchased.
13. Capital and Surplus, Shareholders’ Dividend Restrictions and Quasi-Reorganizations
No significant change
14. Liabilities, Contingencies and Assessments
A. No significant change
B. No significant change
C. No significant change
D. No significant change
E. No significant change
F. Unum Group is a defendant in a number of litigation matters. In some of these matters, no specified amount is sought. In others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted in the United States courts with respect to requests for monetary damages, including some courts in which no specified amount is required and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on extensive experience and that of others in the industry with respect to litigating or resolving claims through settlement over an extended period of time, Unum Group believes that the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated.
Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
7.3
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
Claim Handling Matters
Unum Group and its insurance subsidiaries, including the Company, as part of the normal operations in managing claims, are engaged in claim litigation where disputes arise as a result of a denial or termination of benefits. Most typically these lawsuits are filed on behalf of a single claimant or policyholder, and in some of these individual actions punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. For its general claim litigation, Unum Group and its insurance company subsidiaries, including the Company, maintain reserves based on experience to satisfy judgments and settlements in the normal course. Management expects that the ultimate liability, if any, with respect to general claim litigation, after consideration of the reserves maintained, will not be material to the financial condition of the Company. Nevertheless, given the inherent unpredictability of litigation, it is possible that an adverse outcome in certain claim litigation involving punitive damages could, from time to time, have a material adverse effect on the Company’s results of operations in a period, depending on the results of operations of the Company for the particular period. The Company is unable to estimate the range of reasonably possible punitive losses.
From time to time class action allegations are pursued where the claimant or policyholder purports to represent a larger number of individuals who are similarly situated. Since each insurance claim is evaluated based on its own merits, there is rarely a single act or series of actions, which can properly be addressed by a class action. Nevertheless, Unum Group monitors these cases closely and defends itself appropriately where these allegations are made.
Miscellaneous Matters
Beginning in 2011, a number of state regulators began requiring insurers to cross-check specified insurance policies with the Social Security Administration’s Death Master File to identify potential matches. If a potential match was identified, insurers were requested to determine if benefits were due, locate beneficiaries, and make payments where appropriate. Unum Group initiated this process where requested, and in 2012 began implementing this process in all states on a forward-looking basis. In addition to implementing this on a forward-looking basis, in 2013 Unum Group began an initiative to search for potential claims from previous years. During 2013, the Company completed its assessment of benefits which it estimates will be paid under this initiative, and as such, established additional reserves for payment of these benefits.
Similar to other insurers, Unum Group is undergoing an examination by a third party acting on behalf of a number of state treasurers concerning its compliance with the unclaimed property laws of the participating states. Unum Group is cooperating fully with this examination as well as with a Delaware Market Conduct examination involving the same issue. The legal and regulatory environment around unclaimed death benefits continues to evolve. It is possible that the current examination and/or similar investigations by other state jurisdictions may result in additional payments to beneficiaries, the payment of abandoned funds under state law, and/or administrative penalties, the total of which may be in excess of the reserves established.
The Company established additional long-term care active life reserves during prior periods using revised assumptions from cash flow testing, in accordance with New York State Department of Financial Services requirements. It is possible that the Company will be required to further increase its long-term care active life reserves, depending on changes in underlying trends and assumptions.
Summary
Various lawsuits against Unum Group and/or its subsidiaries, including the Company, in addition to those discussed above, have arisen in the normal course of business. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning Unum Group’s compliance with applicable insurance and other laws and regulations.
Given the complexity and scope of Unum Group’s litigation and regulatory matters, it is not possible to predict the ultimate outcome of all pending investigations or legal proceedings or provide reasonable estimates of potential losses, except where noted in connection with specific matters. It is possible that the Company’s results of operations or cash flows in a particular period could be materially affected by an ultimate unfavorable outcome of pending litigation or regulatory matters depending, in part, on the Company’s results of operations or cash flows for the particular period. Unum Group believes, however, that the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.
15. Leases
No significant change
16. Information About Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk
No significant change
7.4
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
17. Sale, Transfer and Servicing of Financial Assets, and Extinguishments of Liabilities
A. No significant change
B. Transfer and Servicing of Financial Assets
(1) No significant change
(2) a. Not applicable
b. Not applicable
c. Not applicable
(3) No significant change
(4) a. Not applicable
b. Not applicable
(5) No significant change
(6) No significant change
(7) No significant change
C. Wash sales
Not applicable
18. Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans
No significant change
19. Direct Premium Written/Produced by Managing General Agents/Third Party Administrators
No significant change
7.5
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
20. Fair Value Measurements
The fair values of the Company’s financial instruments are categorized into a three-level classification. The lowest level input that is significant to the fair value measurement of a financial instrument is used to categorize the instrument and reflects the judgment of management. The valuation criterion for each level is summarized as follows:
• Level 1 - Inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities at the measurement date.
• Level 2 - Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 2 inputs include, for example, indicative prices obtained from brokers or pricing services validated to other observable market data and quoted prices for similar assets or liabilities.
• Level 3 - Inputs reflect the Company’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Financial assets and liabilities categorized as Level 3 are generally based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The inputs reflect the Company’s estimates about the assumptions that market participants would use in pricing the instrument in a current period transaction.
See section C for further discussion of the Company’s valuation methods and techniques.
A. (1) Fair value measurements at September 30, 2017 are as follows:
(Level 1) (Level 2) (Level 3) Total
a. Assets at fair value Separate account assets $ 854,216 $ — $ — $ 854,216
There were no transfers between levels during the nine months ended September 30, 2017.
(2) Not applicable
(3) For fair value measurements of financial instruments that are transferred between levels, the Company reflects the transfers using the fair value at the beginning of the reporting period.
(4) Not applicable
(5) Not applicable
B. Not applicable
7.6
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
C. Presented as follows are the fair values, admitted values and categorization by input level of financial instruments held at the reporting date. The admitted values of financial instruments such as cash and cash equivalents, accounts and premiums receivable, accrued investment income, payable for securities lending, and short-term payables approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following charts.
September 3 0, 2017 Not Practicable Aggregate Admitted (Carrying Type of Financial Instrument Fair Value Values Level 1 Level 2 Level 3 Value) Admitted Assets Bonds $ 3,481,313,336 $ 3,057,054,064 $ 869,034,974 $ 2,518,549,710 $ 93,728,652 $ — Mortgage Loans 179,940,903 175,544,080 — 179,940,903 — — Contract Loans 5,081,509 3,520,991 — — 5,081,509 — Other Invested Assets 18,678,745 14,963,437 — 18,678,745 — — Separate Accounts 854,216 854,216 854,216 — — —
December 31, 2016 Not Practicable Aggregate Admitted (Carrying Type of Financial Instrument Fair Value Values Level 1 Level 2 Level 3 Value) Admitted As sets Bonds $ 3,287,968,374 $ 2,966,286,248 $ 352,134,786 $ 2,849,675,164 $ 86,158,424 $ — Mortgage Loans 178,396,734 175,273,400 — 178,396,734 — — Contract Loans 5,268,726 3,709,412 — — 5,268,726 — Other Invested Assets 17,515,970 14,962,896 — 17,515,970 — — Separate Accounts 767,484 767,484 767,484 — — —
The following methods and assumptions were used in estimating the fair values of the Company’s financial instruments.
Bonds: Fair values are based on quoted market prices, where available. For bonds not actively traded, fair values are estimated using values obtained from independent pricing services. For private placements, fair values are estimated using internally prepared valuations combining matrix pricing with vendor purchased software programs, including valuations based on estimates of future profitability. Additionally, the Company obtains prices from independent third-party brokers to establish valuations for certain of these securities.
Mortgage Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered for similar loans to borrowers with similar credit ratings and maturities. Loans with similar characteristics are aggregated for purposes of the calculations.
Contract Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered to policyholders with similar policies.
Other Invested Assets: Fair values for surplus notes are based on prices obtained from independent pricing services or quoted market prices.
Separate Accounts: The Company’s separate account investments consist of publicly traded mutual funds with fair values published by the respective investment companies.
Fair values for the Company’s insurance contracts other than investment contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, therefore, represents an exit price, not an entry price. The exit price objective applies regardless of a reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date.
The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. An active market for a financial instrument is a market in which transactions for an asset or a similar asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides
7.7
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS the most reliable evidence of fair value and should be used to measure fair value whenever available. Conversely, financial instruments rarely traded or not quoted have less observability and are measured at fair value using valuation techniques that require more judgment. Pricing observability is generally impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, and overall market conditions.
Valuation techniques used for assets and liabilities accounted for at fair value are generally categorized into three types. The market approach uses prices and other relevant information from market transactions involving identical or comparable assets or liabilities. The income approach converts future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. The cost approach is based upon the amount that currently would be required to replace the service capacity of an asset, or the current replacement cost.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available that can be obtained without undue cost and effort. In some cases, a single valuation technique will be appropriate (for example, when valuing an asset or liability using quoted prices in an active market for identical assets or liabilities). In other cases, multiple valuation techniques will be appropriate. If the Company uses multiple valuation techniques to measure fair value, it evaluates and weighs the results, as appropriate, considering the reasonableness of the range indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances.
The selection of the valuation method(s) to apply considers the definition of an exit price and depends on the nature of the asset or liability being valued. The Company generally uses valuation techniques consistent with the market approach, and to a lesser extent, the income approach. The Company believes the market approach provides more observable data than the income approach, considering the type of investments the Company holds. The Company’s fair value measurements could differ significantly based on the valuation technique and available inputs. When using a pricing service, the Company obtains the vendor's pricing documentation to ensure the Company understands their methodologies. The Company periodically reviews and approves the selection of its pricing vendors to ensure the Company is in agreement with their current methodologies. When markets are less active, brokers may rely more on models with inputs based on the information available only to the broker. The Company’s internal investment management professionals, which include portfolio managers and analysts, monitor securities priced by brokers and evaluate their prices for reasonableness based on benchmarking to available primary and secondary market information. In weighing a broker quote as an input to fair value, the Company places less reliance on quotes that do not reflect the result of market transactions. The Company also considers the nature of the quote, particularly whether the quote is a binding offer. If prices in an inactive market do not reflect current prices for the same or similar assets, adjustments may be necessary to arrive at fair value. When relevant market data is unavailable, which may be the case during periods of market uncertainty, the income approach can, in suitable circumstances, provide a more appropriate fair value. During 2017, the Company has applied valuation approaches and techniques on a consistent basis to similar assets and liabilities and consistent with those approaches and techniques used at year end 2016.
The Company uses observable and unobservable inputs in measuring the fair value of its financial instruments. Inputs that may be used include the following:
• Broker market maker prices and price levels • Trade Reporting and Compliance Engine (TRACE) pricing • Prices obtained from external pricing services • Benchmark yields (Treasury and interest rate swap curves) • Transactional data for new issuance and secondary trades • Security cash flows and structures • Recent issuance/supply • Sector and issuer level spreads • Security credit ratings/maturity/capital structure/optionality • Corporate actions • Underlying collateral • Prepayment speeds/loan performance/delinquencies/weighted average life/seasoning • Public covenants • Comparative bond analysis • Relevant reports issued by analysts and rating agencies • Audited financial statements
The management of the Company’s investment portfolio includes establishing pricing policy and reviewing the reasonableness of sources and inputs used in developing pricing. The Company reviews all prices obtained to ensure they are consistent with a variety of observable market inputs and to verify the validity of a security’s price. In the event the Company receives a vendor's market price that does not appear reasonable based on its market analysis, the Company may challenge the price and request
7.8
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
further information about the assumptions and methodologies used by the vendor to price the security. The Company may change the vendor price based on a better data source such as an actual trade. The Company also reviews all price changes from the prior month which fall outside a predetermined corridor. The overall valuation process for determining fair values may include adjustments to valuations obtained from the Company’s pricing sources when they do not represent a valid exit price. These adjustments may be made when, in the Company’s judgment and considering its knowledge of the financial conditions and industry in which the issuer operates, certain features of the financial instrument require that an adjustment be made to the value originally obtained from the Company’s pricing sources. These features may include the complexity of the financial instrument, the market in which the financial instrument is traded, counterparty credit risk, credit structure, concentration, or liquidity. Additionally, an adjustment to the price derived from a model typically reflects the Company’s judgment of the inputs that other participants in the market for the financial instrument being measured at fair value would consider in pricing that same financial instrument. In the event an asset is sold, the Company tests the validity of the fair value determined by its valuation techniques by comparing the selling price to the fair value determined for the asset in the immediately preceding month end reporting period closest to the transaction date.
The parameters and inputs used to validate a price on a security may be adjusted for assumptions about risk and current market conditions on a quarter to quarter basis, as certain features may be more significant drivers of valuation at the time of pricing. Changes to inputs in valuations are not changes to valuation methodologies; rather, the inputs are modified to reflect direct or indirect impacts on asset classes from changes in market conditions.
Certain of the Company’s investments do not have readily determinable market prices and/or observable inputs or may at times be affected by the lack of market liquidity. For these securities, the Company uses internally prepared valuations combining matrix pricing with vendor purchased software programs, including valuations based on estimates of future profitability, to estimate the fair value. Additionally, the Company may obtain prices from independent third-party brokers to aid in establishing valuations for certain of these securities. Key assumptions used to determine fair value for these securities include risk free interest rates, risk premiums, performance of underlying collateral (if any), and other factors involving significant assumptions which may or may not reflect those of an active market.
The Company considers transactions in inactive or disorderly markets to be less representative of fair value. The Company uses all available observable inputs when measuring fair value, but when significant other unobservable inputs and adjustments are necessary, it classifies these assets or liabilities as Level 3.
D. Not applicable
21. Other Items
No significant change
22. Events Subsequent
No significant change
23. Reinsurance
No significant change
24. Retrospectively Rated Contracts & Contracts Subject to Redetermination
A. No significant change
B. No significant change
C. No significant change
D. No significant change
E. Not applicable
25. Change in Incurred Losses and Loss Adjustment Expenses
As of December 31, 2016, reserves for unpaid claim and claim adjustment expenses attributable to claims incurred on or before that date were $1,027,453,522. For the nine months ended September 30, 2017, $180,230,514 had been paid for incurred claims and claim adjustment expenses attributable to claims incurred in prior years. As of September 30, 2017, reserves remaining for prior years were
7.9
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
$855,988,842 as a result of re-estimation of unpaid claims and claim adjustment expenses, principally on accident and health policies. Therefore, there has been a cost related to prior year development of $8,765,834 for the period December 31, 2016 to September 30, 2017, excluding net investment income of $35,979,324 earned on invested assets supporting these reserves during the same period. The majority of the reserve balance is related to disability claims with long-tail payouts on which interest earned on assets backing the liabilities is an integral part of reserving, and this should be considered in understanding the development of prior year claims. The reserve basis for prior year claims has not changed during 2017. In addition, the Company experienced $243,674 of unfavorable premium adjustments on directly written experience-rated policies during the nine months ended September 30, 2017.
26. Intercompany Pooling Arrangements
No significant change
27. Structured Settlements
No significant change
28. Health Care Receivables
No significant change
29. Participating Policies
No significant change
30. Premium Deficiency Reserves
No significant change
31. Reserves for Life Contracts and Annuity Contracts
No significant change
32. Analysis of Annuity Actuarial Reserves and Deposit-Type Liabilities by Withdrawal Characteristics
No significant change
33. Premium & Annuity Considerations Deferred and Uncollected
No significant change
34. Separate Accounts
No significant change
35. Loss/Claim Adjustment Expenses
No significant change
7.10 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY GENERAL INTERROGATORIES
PART 1 - COMMON INTERROGATORIES
GENERAL
1.1 Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as required by the Model Act? Yes [ ] No [ X ]
1.2 If yes, has the report been filed with the domiciliary state? Yes [ ] No [ ]
2.1 Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ ] No [ X ]
2.2 If yes, date of change:
3.1 Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? Yes [ X ] No [ ] If yes, complete Schedule Y, Parts 1 and 1A.
3.2 Have there been any substantial changes in the organizational chart since the prior quarter end? Yes [ ] No [ X ]
3.3 If the response to 3.2 is yes, provide a brief description of those changes.
4.1 Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ]
4.2 If yes, provide the name of the entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation.
1 2 3 Name of Entity NAIC Company Code State of Domicile
5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney- in-fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? Yes [ ] No [ X ] N/A [ ] If yes, attach an explanation.
6.1 State as of what date the latest financial examination of the reporting entity was made or is being made. 12/01/2013
6.2 State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. 12/31/2008
6.3 State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). 01/24/2011
6.4 By what department or departments? New York 6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [ ] No [ ] N/A [ X ]
6.6 Have all of the recommendations within the latest financial examination report been complied with? Yes [ X ] No [ ] N/A [ ]
7.1 Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [ X ]
7.2 If yes, give full information:
8.1 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [ X ]
8.2 If response to 8.1 is yes, please identify the name of the bank holding company.
8.3 Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ ] No [ X ]
8.4 If response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator.
1 2 3 4 5 6 Affiliate Name Location (City, State) FRB OCC FDIC SEC
8 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY GENERAL INTERROGATORIES
9.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards ? Yes [ X ] No [ ] (a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity; (c) Compliance with applicable governmental laws, rules and regulations; (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; and (e) Accountability for adherence to the code. 9.11 If the response to 9.1 is No, please explain:
9.2 Has the code of ethics for senior managers been amended ? Yes [ ] No [ X ] 9.21 If the response to 9.2 is Yes, provide information related to amendment(s).
9.3 Have any provisions of the code of ethics been waived for any of the specified officers ? Yes [ ] No [ X ] 9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s).
FINANCIAL
10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? Yes [ X ] No [ ] 10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount: $ 0
INVESTMENT
11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available for use by another person? (Exclude securities under securities lending agreements.) Yes [ ] No [ X ] 11.2 If yes, give full and complete information relating thereto:
12. Amount of real estate and mortgages held in other invested assets in Schedule BA: $ 0 13. Amount of real estate and mortgages held in short-term investments: $ 0 14.1 Does the reporting entity have any investments in parent, subsidiaries and affiliates? Yes [ ] No [ X ] 14.2 If yes, please complete the following: 1 2 Prior Year-End Current Quarter Book/Adjusted Book/Adjusted Carrying Value Carrying Value 14.21 Bonds $ $ 14.22 Preferred Stock $ $ 14.23 Common Stock $ $ 14.24 Short-Term Investments $ $ 14.25 Mortgage Loans on Real Estate $ $ 14.26 All Other $ $ 14.27 Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines 14.21 to 14.26) $ $ 14.28 Total Investment in Parent included in Lines 14.21 to 14.26 above $ $
15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes [ ] No [ X ] 15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ ] No [ ] If no, attach a description with this statement.
8.1 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY GENERAL INTERROGATORIES
16. For the reporting entity’s security lending program, state the amount of the following as of the current statement date: 16.1 Total fair value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2. $ 2,626,125 16.2 Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2 $ 2,626,125 16.3 Total payable for securities lending reported on the liability page. $ 2,626,125
17. Excluding items in Schedule E - Part 3 - Special Deposits , real estate, mortgage loans and investments held physically in the reporting entity’s offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1, III - General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? Yes [ X ] No [ ] 17.1 For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following:
1 2 Name of Custodian(s) Custodian Address JP Morgan Chase Bank, N.A. New York, NY
17.2 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation: 1 2 3 Name(s) Location(s) Complete Explanation(s)
17.3 Have there been any changes, including name changes, in the custodian(s) identified in 17.1 during the current quarter? Yes [ ] No [ X ] 17.4 If yes, give full information relating thereto:
1 2 3 4 Old Custodian New Custodian Date of Change Reason
17.5 Investment management – Identify all investment advisors, investment managers, broker/dealers, including individuals that have the authority to make investment decisions on behalf of the reporting entity. For assets that are managed internally by employees of the reporting entity, note as such. [" that have access to the investment accounts"; " handle securities"] 1 2 Name of Firm or Individual Affiliation Provident Investment Management, LLC A JPMorgan Chase Bank N.A. U
17.5097 For those firms/individuals listed in the table for Question 17.5, do any firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") manage more than 10% of the reporting entity’s assets? Yes [ ] No [ X ]
17.5098 For firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") listed in the table for Question 17.5, does the total assets under management aggregate to more than 50% of the reporting entity’s assets? Yes [ ] No [ X ]
17.6 For those firms or individuals listed in the table for 17.5 with an affiliation code of "A" (affiliated) or "U" (unaffiliated), provide the information for the table below. 1 2 3 4 5 Investment Management Central Registration Agreement Depository Number Name of Firm or Individual Legal Entity Identifier (LEI) Registered With (IMA) Filed 108527 Provident Investment Management, LLC DS JPMorgan Chase Bank N.A. 815DZWZKVSZI1NUHU748 NO
18.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Investment Analysis Office been followed? Yes [ X ] No [ ] 18.2 If no, list exceptions:
8.2 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY GENERAL INTERROGATORIES
PART 2 - LIFE & HEALTH
1. Report the statement value of mortgage loans at the end of this reporting period for the following categories: 1 Amount 1.1 Long-Term Mortgages In Good Standing
1.11 Farm Mortgages $
1.12 Residential Mortgages $
1.13 Commercial Mortgages $ 175,544,080
1.14 Total Mortgages in Good Standing $ 175,544,080
1.2 Long-Term Mortgages In Good Standing with Restructured Terms
1.21 Total Mortgages in Good Standing with Restructured Terms $
1.3 Long-Term Mortgage Loans Upon which Interest is Overdue more than Three Months
1.31 Farm Mortgages $
1.32 Residential Mortgages $
1.33 Commercial Mortgages $
1.34 Total Mortgages with Interest Overdue more than Three Months $
1.4 Long-Term Mortgage Loans in Process of Foreclosure
1.41 Farm Mortgages $
1.42 Residential Mortgages $
1.43 Commercial Mortgages $
1.44 Total Mortgages in Process of Foreclosure $
1.5 Total Mortgage Loans (Lines 1.14 + 1.21 + 1.34 + 1.44) (Page 2, Column 3, Lines 3.1 + 3.2) $ 175,544,080
1.6 Long-Term Mortgages Foreclosed, Properties Transferred to Real Estate in Current Quarter
1.61 Farm Mortgages $
1.62 Residential Mortgages $
1.63 Commercial Mortgages $
1.64 Total Mortgages Foreclosed and Transferred to Real Estate $
2. Operating Percentages:
2.1 A&H loss percent 117.600 %
2.2 A&H cost containment percent 1.500 %
2.3 A&H expense percent excluding cost containment expenses 23.700 %
3.1 Do you act as a custodian for health savings accounts? Yes [ ] No [ X ]
3.2 If yes, please provide the amount of custodial funds held as of the reporting date $
3.3 Do you act as an administrator for health savings accounts? Yes [ ] No [ X ]
3.4 If yes, please provide the balance of the funds administered as of the reporting date $
9 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE S - CEDED REINSURANCE Showing All New Reinsurance Treaties - Current Year to Date 1 2 3 4 5 6 7 8 9 Effective Certified Date of NAIC Type of Reinsurer Certified Company ID Effective Domiciliary Reinsurance Rating Reinsurer Code Number Date Name of Reinsurer Jurisdiction Ceded Type of Reinsurer (1 through 6) Rating
10 NONE STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE T - PREMIUMS AND ANNUITY CONSIDERATIONS Current Year To Date - Allocated by States and Territories Direct Business Only 1 Life Contracts 4 5 6 7 2 3 Accident and Health Insurance Premiums, Including Policy, Total Active Life Insurance Annuity Membership Other Columns Deposit-Type States, Etc. Status Premiums Considerations and Other Fees Considerations 2 Through 5 Contracts 1. Alabama AL N 26,302 100,100 126,402 2. Alaska AK N 9,190 36,069 45,259 3. Arizona AZ N 45,487 412,419 457,906 4. Arkansas AR N 13,354 40,465 53,819 5. California CA N 835,438 2,447,077 3,282,515 6. Colorado CO N 27,735 367,784 395,519 7. Connecticut CT N 434,030 2,008,361 2,442,391 8. Delaware DE N 23,702 425,069 448,771 9. District of Columbia DC N 20,139 211,749 231,888 10. Florida FL N 310,971 4,287,023 4,597,994 11. Georgia GA N 151,099 834,550 985,649 12. Hawaii HI N 3,319 75,497 78,817 13. Idaho ID N 15,422 82,534 97,956 14. Illinois IL N 268,074 765,345 1,033,420 15. Indiana IN N 108,720 233,567 342,287 16. Iowa IA N 90,769 304,915 395,684 17. Kansas KS N 128,634 148,363 276,997 18. Kentucky KY N 21,855 65,577 87,431 19. Louisiana LA N 2,823 106,371 109,194 20. Maine ME N 10,231 108,691 118,922 21. Maryland MD N 88,594 936,312 1,024,905 22. Massachusetts MA N 141,516 1,181,391 1,322,906 23. Michigan MI N 37,231 315,304 352,535 24. Minnesota MN N 125,167 666,782 791,949 25. Mississippi MS N 7,948 72,919 80,867 26. Missouri MO N 69,960 256,218 326,178 27. Montana MT N 1,146 34,535 35,681 28. Nebraska NE N 15,132 38,914 54,046 29. Nevada NV N 36,928 135,070 171,998 30. New Hampshire NH N 37,446 207,545 244,991 31. New Jersey NJ N 1,012,361 7,481,689 8,494,050 32. New Mexico NM N 1,631 157,794 159,425 33. New York NY L 63,634,026 221,225,445 284,859,470 2,250 34. North Carolina NC N 68,357 815,838 884,195 35. North Dakota ND N 1,885 11,861 13,746 36. Ohio OH N 5,663,074 1,216,762 6,879,836 37. Oklahoma OK N 3,963 77,348 81,311 38. Oregon OR N 14,293 135,317 149,609 39. Pennsylvania PA N 310,200 2,114,040 2,424,240 40. Rhode Island RI N 10,052 93,250 103,302 41. South Carolina SC N 27,384 577,148 604,532 42. South Dakota SD N 2,723 43,531 46,253 43. Tennessee TN N 85,640 227,753 313,393 44. Texas TX N 337,772 1,259,321 1,597,093 45. Utah UT N 5,045 112,415 117,460 46. Vermont VT N 3,695 163,288 166,983 47. Virginia VA N 99,612 667,626 767,238 48. Washington WA N 42,504 242,542 285,046 49. West Virginia WV N 15,839 44,223 60,062 50. Wisconsin WI N 339,683 913,407 1,253,090 51. Wyoming WY N 916 9,601 10,517 52. American Samoa AS N 53. Guam GU N 54. Puerto Rico PR N 2,175 15,059 17,233 55. U.S. Virgin Islands VI N 126 2,060 2,186 56. Northern Mariana Islands MP N 57. Canada CAN N 86 17,453 17,540 58. Aggregate Other Aliens OT XXX 24,551 378,692 403,243 59. Subtotal (a) 1 74,815,954 254,909,976 329,725,930 2,250 90. Reporting entity contributions for employee benefits plans XXX 91. Dividends or refunds applied to purchase paid-up additions and annuities XXX 1,731 1,731 92. Dividends or refunds applied to shorten endowment or premium paying period XXX 93. Premium or annuity considerations waived under disability or other contract provisions XXX 38,368 4,002,416 4,040,783 94. Aggregate or other amounts not allocable by State XXX 95. Totals (Direct Business) XXX 74,856,052 258,912,392 333,768,444 2,250 96. Plus Reinsurance Assumed XXX 1,002,571 1,174,326 2,176,896 97 Totals (All Business) XXX 75,858,623 260,086,717 335,945,340 2,250 98. Less Reinsurance Ceded XXX 23,051,161 16,844,938 39,896,099 2,250 99. Totals (All Business) less Reinsurance Ceded XXX 52,807,462 243,241,779 296,049,241 DETAILS OF WRITE-INS 58001. AUS AUSTRALIA XXX 3,755 4,223 7,977 58002. BEL BELGIUM XXX 5,570 5,570 58003. BMU BERMUDA XXX 549 549 58998. Summary of remaining write-ins for Line 58 from overflow page XXX 20,247 368,900 389,147 58999. Totals (Lines 58001 through 58003 plus 58998)(Line 58 above) XXX 24,551 378,692 403,243 9401. XXX 9402. XXX 9403. XXX 9498. Summary of remaining write-ins for Line 94 from overflow page XXX 9499. Totals (Lines 9401 through 9403 plus 9498)(Line 94 above) XXX (L) Licensed or Chartered - Licensed Insurance Carrier or Domiciled RRG; (R) Registered - Non-domiciled RRGs; (Q) Qualified - Qualified or Accredited Reinsurer; (E) Eligible - Reporting Entities eligible or approved to write Surplus Lines in the state; (N) None of the above - Not allowed to write business in the state. (a) Insert the number of L responses except for Canada and Other Alien.
11 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
SCHEDULE Y - INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART 1 - ORGANIZATIONAL CHART
Unum Group (D E) FEIN: 62-1598430
Provident Colonial Provident First U num Unum Life The Paul Life and Life & Fairw ind U num Life and Life Insurance Unum Revere Life Accident Accident Insurance Insurance Casualty Provident Provident Insurance Company Duncanson European UnumProvident Northwind Insurance Insurance Insurance Company Company Insurance Investment Financing H&J Capital, Company of America & Holt, Inc. Holding Finance Holdings, LLC Company Company Company (VT) (M E) Company Management, Trust I (DE) L.L.C. (LA) (N Y) (M E) (N Y) Company Company (D E) (M A) (TN ) (SC) FEIN: FEIN: (TN ) LLC (TN) FEIN: FEIN: FEIN: FEIN: FEIN: Lim ited Lim ited FEIN: FEIN: FEIN: FEIN: 98-0179389 04-2381280 FEIN: FEIN: 52-6894896 72-0977314 13-1898173 01-0278678 13-2588770 (England) (England) 26-0702757 04-1768571 62-0331200 57-0144607 NAIC: NAIC: 62-0506281 62-1705665 [5] NAIC: NAIC: [3] NAIC: NAIC: NAIC: 15463 67601 NAIC: 64297 62235 67598 68195 62049 68209 [2]
Duncanson 12 Northwind & Holt U num National Unum Reinsurance Services, Inc. Lim ited Dental Plan Ire land (England) Lim ited Lim ited Company (M E) Starmount [4] (England) (Ireland) (VT) FEIN: Insurance 01-0358803 FEIN: 26-0702523 Agency, Inc. Claims NAIC: (LA) Duncanson Services Claims 13031 FEIN: & Holt International Assistance 72-0809131 Canada Ltd. Lim ited (UK) Limited Starmount (Canada) (England) (England) [1] Life Insurance Company Duncanson (LA) & Holt Unum Select NDPH NDP (UK) FEIN: Underwriters Lim ited Lim ited Lim ited 72-0977315 Ltd. (England) (England) (Engalnd) NAIC: 68985 (England) Percentage of ownership is 100% unless otherwise indicated : [1] 50% owned by Unum European Holding Company Limited, and 50% owned by Unum Limited AlwaysCare [2] 85.9% owned by Unum Group, 10.1% owned by The Paul Revere Life Insurance Company, Benefits, Inc. Duncanson and 4.0% owned by Unum Life Insurance Company of America (LA) & Holt [3] 80% owned by Unum Group, and 20% owned by UnumProvident Finance Company Limited FEIN: Europe Ltd. [4] 72% owned by Unum European Holding Company Limited, and 28% owned by UnumProvident 72-1146709 (England) Finance Company Limited M IC Minories M IC Holdings [5] Statutory business trust which issued common and preferred securities representing undivided Guernsey Insurance Lim ited beneficial interests in the assets of the trusts. Unum Group owns 100% of the common securities. First Look Lim ited PCC Lim ited Vision (Guernsey) (Guernsey) (Guernsey) Network, L.L.C. (M O) FEIN: 20-1373510
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE Y PART 1A - DETAIL OF INSURANCE HOLDING COMPANY SYSTEM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Type If of Control Control (Ownership, is Is an Name of Securities Relation- Board, Owner- SCA Exchange Domi- ship Management, ship Filing NAIC if Publicly Traded Names of ciliary to Attorney-in-Fact, Provide Re- Group Company ID Federal (U.S. or Parent, Subsidiaries Loca- Reporting Directly Controlled by Influence, Percen- Ultimate Controlling quired? Code Group Name Code Number RSSD CIK International) Or Affiliates tion Entity (Name of Entity/Person) Other) tage Entity(ies)/Person(s) (Y/N) * 00000 62-1598430 0000005513 NYSE Unum Group DE UDP 0.000 N 0565 Unum Group 64297 13-1898173 First Unum Life Insurance Company NY RE Unum Group Ownership 100.000 Unum Group N 0565 Unum Group 62235 01-0278678 Unum Life Insurance Company of America ME IA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 13-2588770 Duncanson & Holt, Inc. NY NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 01-0358803 Duncanson & Holt Services, Inc. ME NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Duncanson & Holt Canada Ltd. CAN NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Duncanson & Holt Underwriters Ltd. GBR NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Duncanson & Holt Europe Ltd. GBR NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Unum European Holding Company Limited GBR NIA Unum Group Ownership 80.000 Unum Group N 0000009 Unum Group 00000 Unum European Holding Company Limited GBR NIA UnumProvident Finance Company Limited Ownership 20.000 Unum Group N 0000010 Unum Group 00000 Unum Limited GBR IA Unum European Holding Company Limited Ownership 72.000 Unum Group N 0000011 Unum Group 00000 Unum Limited GBR IA UnumProvident Finance Company Limited Ownership 28.000 Unum Group N 0000012 Unum Group 00000 Claims Services International Limited GBR NIA Unum European Holding Company Limited Ownership 50.000 Unum Group N 0000013 Unum Group 00000 Claims Services International Limited GBR NIA Unum Limited Ownership 50.000 Unum Group N 0000014 Unum Group 00000 Unum Select Limited GBR NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 UnumProvident Finance Company Limited GBR NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 Unum Ireland Limited IRL NIA UnumProvident Finance Company Limited Ownership 100.000 Unum Group N 0565 Unum Group 62049 57-0144607 Colonial Life & Accident Insurance Company SC IA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 98-0179389 Fairwind Insurance Company VT IA Unum Group Ownership 100.000 Unum Group N
13 0565 Unum Group 67598 04-1768571 The Paul Revere Life Insurance Company MA IA Unum Group Ownership 100.000 Unum Group N 0565 Unum Group 67601 04-2381280 Unum Insurance Company ME IA Unum Group Ownership 100.000 Unum Group N Provident Life and Accident Insurance Company 0565 Unum Group 68195 62-0331200 TN IA Unum Group Ownership 85.900 Unum Group N 0000022 Provident Life and Accident Insurance Company 0565 Unum Group 68195 62-0331200 TN IA The Paul Revere Life Insurance Company Ownership 10.100 Unum Group N 0000023 Provident Life and Casualty Insurance Company 0565 Unum Group 68209 62-0506281 TN IA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 62-1705665 Provident Investment Management, LLC TN NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 26-0702757 Northwind Holdings, LLC DE NIA Unum Group Ownership 100.000 Unum Group N 0565 Unum Group 13031 26-0702523 Northwind Reinsurance Company VT IA Northwind Holdings, LLC Ownership 100.000 Unum Group N Unum Group 00000 52-6894896 Provident Financing Trust I DE NIA Unum Group Ownership 100.000 Unum Group N 0000028 Unum Group 00000 National Dental Plan Limited GBR NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 Claims Assistance (UK) Limited GBR NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 NDPH Limited GBR NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 NDP (UK) Limited GBR NIA NDPH Limited Ownership 100.000 Unum Group N Unum Group 00000 MIC Guernsey Limited GGY NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 MIC Holdings Limited GGY NIA MIC Guernsey Limited Ownership 100.000 Unum Group N Unum Group 00000 Minories Insurance PCC Limited GGY IA MIC Holdings Limited Ownership 100.000 Unum Group N Unum Group 00000 72-0977314 H&J Capital, L.L.C. LA NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 72-0809131 Starmount Insurance Agency, Inc. LA NIA H&J Capital, L.L.C. Ownership 100.000 Unum Group N 0565 Unum Group 68985 72-0977315 Starmount Life Insurance Company LA IA H&J Capital, L.L.C. Ownership 100.000 Unum Group N Unum Group 00000 72-1146709 AlwaysCare Benefits, Inc. LA NIA H&J Capital, L.L.C. Ownership 100.000 Unum Group N Unum Group 00000 20-1373510 First Look Vision Network, L.L.C. LA NIA H&J Capital, L.L.C. Ownership 100.000 Unum Group N
STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
Asterisk Explanation 0000009 80% owned by Unum Group and 20% owned by UnumProvident Finance Company Limited. 0000010 80% owned by Unum Group and 20% owned by UnumProvident Finance Company LImited. 0000011 72% owned by Unum European Holding Company Limited and 28% owned by UnumProvident Finance Company Limited. 0000012 72% owned by Unum European Holding Company Limited and 28% owned by UnumProvident Finance Company Limited. 0000013 50% owned by Unum European Holding Company Limited and 50% owned by Unum Limited. 0000014 50% owned by Unum European Holding Company Limited and 50% owned by Unum Limited. 0000022 Provident Life and Accident Insurance Company is 85.9% owned by Unum Group, 10.1% owned by The Paul Revere Life Insurance Company and 4.0% owned by Unum Life Insurance Company of America. 0000023 Provident Life and Accident Insurance Company is 85.9% owned by Unum Group, 10.1% owned by The Paul Revere Life Insurance Company and 4.0% owned by Unum Life Insurance Company of America. 0000028 A statutory business trust which issued common and preferred securities representing undivided beneficial interests in the assets of the trust. Unum Group owns 100% of the common securities.
13.1 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES
The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does not transact the type of business for which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing a “NONE” report and a bar code will be printed below. If the supplement is required of your company but is not being filed for whatever reason enter SEE EXPLANATION and provide an explanation following the interrogatory questions.
Response
1. Will the Trusteed Surplus Statement be filed with the state of domicile and the NAIC with this statement? NO 2. Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAIC with this statement ? NO 3. Will the Reasonableness of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile and electronically with the NAIC ? NO 4. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile and electronically with the NAIC ? NO 5. Will the Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method required by Actuarial Guideline XXXVI be filed with the state of domicile and electronically with the NAIC? NO 6. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Average Market Value) be filed with the state of domicile and electronically with the NAIC? NO 7. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Market Value) be filed with the state of domicile and electronically with the NAIC? NO
Explanation:
1.
2.
3.
4.
5.
6.
7.
Bar Code: 1. Trusteed Surplus Statement [Document Identifier 490] *64297201749000003* 2. Medicare Part D Coverage Supplement [Document Identifier 365] *64297201736500003* 3. Reasonableness of Assumptions Certification required by Actuarial Guideline XXXV [Document Identifier 445] *64297201744500003* 4. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXV [Document Identifier 446] *64297201744600003* 5. Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method required by Actuarial Guideline XXXVI [Document Identifier 447] *64297201744700003* 6. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI [Document Identifier 448] *64297201744800003* 7. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Market Value) [Document Identifier 449] *64297201744900003*
14 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY OVERFLOW PAGE FOR WRITE-INS
Additional Write-ins for Schedule T Line 58 Direct Business Only 1 Life Contracts 4 5 6 7 2 3 Accident and Health Insurance Premiums, Including Policy, Total Active Life Insurance Annuity Membership Other Columns Deposit-Type States, Etc. Status Premiums Considerations and Other Fees Considerations 2 Through 5 Contracts 58004. BRA BRAZIL XXX 663 1,701 2,364 58005. CHN CHINA XXX 382 2,665 3,047 58006. CZE CZECH REPUBLIC XXX 2,742 2,742 58007. DNK DENMARK XXX 1,572 1,572 58008. FRA FRANCE XXX 1,787 9,961 11,748 58009. DEU GERMANY XXX 211,214 211,214 58010. HKG HONG KONG XXX 11,723 11,723 58011. IND INDIA XXX 86 1,377 1,464 58012. IDN INDONESIA XXX 1,146 1,146 58013. ISR ISRAEL XXX 869 2,745 3,614 58014. ITA ITALY XXX 447 10,024 10,471 58015. JPN JAPAN XXX 9,547 9,547 58016. KEN KENYA XXX 963 963 58017. KOR KOREA, REPUBLIC OF XXX 1,728 1,728 58018. MEX MEXICO XXX 694 694 58019. NLD NETHERLANDS XXX 802 802 58020. NOR NORWAY XXX 2,832 2,832 58021. PRT PORTUGAL XXX 878 878 58022. SGP SINGAPORE XXX 975 7,830 8,805 58023. ZAF SOUTH AFRICA XXX 1,171 1,171 58024. ESP SPAIN XXX 2,804 2,804 58025. CHE SWITZERLAND XXX 2,854 23,090 25,944 58026. TWN TAIWAN, PROVINCE OF CHINA XXX 1 1 58027. TUN TUNISIA XXX 2,110 2,110 58028. TUR TURKEY XXX 1,873 1,873 58029. ARE UNITED ARAB EMIRATES XXX 3,439 3,439 58030. GBR UNITED KINGDOM XXX 11,222 53,231 64,452 58997. Summary of remaining write-ins for Line 58 from overflow page XXX 20,247 368,900 389,147
15 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE A - VERIFICATION Real Estate 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value, December 31 of prior year 2. Cost of acquired: 2.1 Actual cost at time of acquisition 2.2 Additional investment made after acquisition 3. Current year change in encumbrances 4. Total gain (loss) on disposals 5. Deduct amounts received on disposals 6. Total foreign exchange change in book/adjusted carrying value 7. Deduct current year’s other than temporary impairment recognized 8. Deduct current year’s depreciation NONE 9. Book/adjusted carrying value at the end of current period (Lines 1+2+3+4-5+6-7-8) 10. Deduct total nonadmitted amounts 11. Statement value at end of current period (Line 9 minus Line 10)
SCHEDULE B - VERIFICATION Mortgage Loans 1 2 Prior Year Ended Year to Date December 31 1. Book value/recorded investment excluding accrued interest, December 31 of prior year 175,273,400 148,177,510 2. Cost of acquired: 2.1 Actual cost at time of acquisition 9,175,000 54,550,000 2.2 Additional investment made after acquisition 3. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 8,904,320 27,454,110 8. Deduct amortization of premium and mortgage interest points and commitment fees 9. Total foreign exchange change in book value/recorded investment excluding accrued interest 10. Deduct current year’s other than temporary impairment recognized 11. Book value/recorded investment excluding accrued interest at end of current period (Lines 1+2+3+4+5+6-7-8+9-10) 175,544,080 175,273,400 12. Total valuation allowance 13. Subtotal (Line 11 plus Line 12) 175,544,080 175,273,400 14. Deduct total nonadmitted amounts 15. Statement value at end of current period (Line 13 minus Line 14) 175,544,080 175,273,400
SCHEDULE BA - VERIFICATION Other Long-Term Invested Assets 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value, December 31 of prior year 14,962,896 14,962,207 2. Cost of acquired: 2.1 Actual cost at time of acquisition 2.2 Additional investment made after acquisition 3. Capitalized deferred interest and other 4. Accrual of discount 541 689 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 8. Deduct amortization of premium and depreciation 9. Total foreign exchange change in book/adjusted carrying value 10. Deduct current year’s other than temporary impairment recognized 11. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5+6-7-8+9-10) 14,963,437 14,962,896 12. Deduct total nonadmitted amounts 13. Statement value at end of current period (Line 11 minus Line 12) 14,963,437 14,962,896
SCHEDULE D - VERIFICATION Bonds and Stocks 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value of bonds and stocks, December 31 of prior year 2,966,286,248 2,869,151,769 2. Cost of bonds and stocks acquired 234,794,538 332,157,900 3. Accrual of discount 10,216,952 13,727,444 4. Unrealized valuation increase (decrease) 5. Total gain (loss) on disposals (503,561) (451,248) 6. Deduct consideration for bonds and stocks disposed of 152,384,576 246,446,738 7. Deduct amortization of premium 1,355,537 1,852,879 8. Total foreign exchange change in book/adjusted carrying value 9. Deduct current year’s other than temporary impairment recognized 10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9) 3,057,054,064 2,966,286,248 11. Deduct total nonadmitted amounts 12. Statement value at end of current period (Line 10 minus Line 11) 3,057,054,064 2,966,286,248
SI01 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE D - PART 1B Showing the Acquisitions, Dispositions and Non-Trading Activity During the Current Quarter for all Bonds and Preferred Stock by NAIC Designation 1 2 3 4 5 6 7 8 Book/Adjusted Book/Adjusted Book/Adjusted Book/Adjusted Book/Adjusted Carrying Value Acquisitions Dispositions Non-Trading Activity Carrying Value Carrying Value Carrying Value Carrying Value Beginning During During During End of End of End of December 31 NAIC Designation of Current Quarter Current Quarter Current Quarter Current Quarter First Quarter Second Quarter Third Quarter Prior Year
BONDS
1. NAIC 1 (a) 1,274,044,056 44,829,428 32,047,528 (7,387,026) 1,267,565,748 1,274,044,056 1,279,438,930 1,261,617,133 2. NAIC 2 (a) 1,415,134,570 401,064,589 375,384,126 (6,870,803) 1,396,732,631 1,415,134,570 1,433,944,230 1,360,301,221 3. NAIC 3 (a) 221,766,549 8,556,875 15,360,450 20,030,910 222,771,882 221,766,549 234,993,884 240,064,433 4. NAIC 4 (a) 99,006,975 8,116,250 5,811,525 1,240,830 89,589,718 99,006,975 102,552,530 96,735,290 5. NAIC 5 (a) 20,148,672 (4,012,342) 16,160,806 20,148,672 16,136,330 16,172,597 6. NAIC 6 (a) 7. Total Bonds 3,030,100,822 462,567,142 428,603,629 3,001,569 2,992,820,785 3,030,100,822 3,067,065,904 2,974,890,674
SI02
PREFERRED STOCK
8. NAIC 1 9. NAIC 2 10. NAIC 3 11. NAIC 4 12. NAIC 5 13. NAIC 6 14. Total Preferred Stock 15. Total Bonds and Preferred Stock 3,030,100,822 462,567,142 428,603,629 3,001,569 2,992,820,785 3,030,100,822 3,067,065,904 2,974,890,674 (a) Book/Adjusted Carrying Value column for the end of the current reporting period includes the following amount of short-term and cash equivalent bonds by NAIC designation: NAIC 1 $ ; NAIC 2 $ 10,011,840 ; NAIC 3 $ NAIC 4 $ ; NAIC 5 $ ; NAIC 6 $ STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
Schedule DA - Part 1 - Short-Term Investments N O N E
Schedule DA - Verification - Short-Term Investments N O N E
Schedule DB - Part A - Verification - Options, Caps, Floors, Collars, Swaps and Forwards N O N E
Schedule DB - Part B - Verification - Futures Contracts N O N E
Schedule DB - Part C - Section 1 - Replication (Synthetic Asset) Transactions (RSATs) Open N O N E
Schedule DB-Part C-Section 2-Reconciliation of Replication (Synthetic Asset) Transactions Open N O N E
Schedule DB - Verification - Book/Adjusted Carrying Value, Fair Value and Potential Exposure of Derivatives N O N E
SI03, SI04, SI05, SI06, SI07 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE E - VERIFICATION (Cash Equivalents) 1 2
Prior Year Ended Year To Date December 31
1. Book/adjusted carrying value, December 31 of prior year 8,604,426 4,147,806
2. Cost of cash equivalents acquired 1,268,091,310 1,005,572,635
3. Accrual of discount
4. Unrealized valuation increase (decrease)
5. Total gain (loss) on disposals
6. Deduct consideration received on disposals 1,266,683,896 1,001,116,015
7. Deduct amortization of premium
8. Total foreign exchange change in book/adjusted carrying value
9. Deduct current year’s other than temporary impairment recognized
10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9) 10,011,840 8,604,426
11. Deduct total nonadmitted amounts
12. Statement value at end of current period (Line 10 minus Line 11) 10,011,840 8,604,426
SI08 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
Schedule A - Part 2 - Real Estate Acquired and Additions Made N O N E
Schedule A - Part 3 - Real Estate Disposed N O N E
E01 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE B - PART 2 Showing All Mortgage Loans ACQUIRED AND ADDITIONS MADE During the Current Quarter 1 Location 4 5 6 7 8 9 2 3 Additional Loan Actual Cost at Investment Made Value of Land Loan Number City State Type Date Acquired Rate of Interest Time of Acquisition After Acquisition and Buildings
NONE
3399999 - Totals
E02 SCHEDULE B - PART 3 Showing All Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter 1 Location 4 5 6 7 Change in Book Value/Recorded Investment 14 15 16 17 18 2 3 Book Value/ 8 9 10 11 12 13 Book Value/ Recorded Current Recorded Investment Year’s Other Total Investment Foreign Excluding Unrealized Current Than Capitalized Change Total Foreign Excluding Exchange Realized Total Accrued Valuation Year’s Temporary Deferred in Exchange Accrued Gain Gain Gain Loan Date Disposal Interest Increase (Amortization) Impairment Interest and Book Value Change in Interest on Consid- (Loss) on (Loss) on (Loss) on Loan Number City State Type Acquired Date Prior Year (Decrease) /Accretion Recognized Other (8+9-10+11) Book Value Disposal eration Disposal Disposal Disposal 100003610 SALT LAKE CITY UT 09/07/2007 09/28/2017 2,117,256 2,117,256 2,117,256 0199999. Mortgages closed by repayment 2,117,256 2,117,256 2,117,256 100002978 EDGEWATER MD 10/05/2006 30,704 30,704 30,704 100003313 COLORADO SPRINGS CO 12/06/2006 58,018 58,018 58,018 100003610 SALT LAKE CITY UT 09/07/2007 17,478 17,478 17,478 100003656 WAKEFIELD RI 05/31/2007 28,603 28,603 28,603 100004397 OGDEN UT 03/27/2008 130,611 130,611 130,611 100004820 BALTIMORE MD 07/09/2008 43,888 43,888 43,888 100005104 SUWANEE GA 08/07/2008 38,372 38,372 38,372 100005792 DALLAS GA 05/28/2009 11,961 11,961 11,961 100005977 LAWRENCEVILLE GA 05/28/2009 11,040 11,040 11,040 100006244 CICERO IL 07/31/2009 17,582 17,582 17,582 100006310 FEDERAL WAY WA 12/30/2009 33,623 33,623 33,623 100007016 SAN RAMON CA 08/31/2010 51,657 51,657 51,657 100007254 HOUSTON TX 09/09/2011 40,598 40,598 40,598 100007301 EDEN PRAIRIE MN 09/02/2010 62,350 62,350 62,350 100008099 BEND OR 05/23/2011 22,378 22,378 22,378 100008379 VONORE TN 07/19/2011 46,225 46,225 46,225 100008619 MESA AZ 11/10/2011 37,904 37,904 37,904 100009758 STILLWATER OK 05/03/2013 49,745 49,745 49,745 100010127 LOS ANGELES CA 04/04/2013 43,802 43,802 43,802 100010638 EL PASO TX 12/10/2013 46,292 46,292 46,292 100011910 MANTENO IL 05/14/2015 19,629 19,629 19,629 100012014 PORTLAND OR 07/28/2015 56,091 56,091 56,091 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE B - PART 3 Showing All Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter 1 Location 4 5 6 7 Change in Book Value/Recorded Investment 14 15 16 17 18 2 3 Book Value/ 8 9 10 11 12 13 Book Value/ Recorded Current Recorded Investment Year’s Other Total Investment Foreign Excluding Unrealized Current Than Capitalized Change Total Foreign Excluding Exchange Realized Total Accrued Valuation Year’s Temporary Deferred in Exchange Accrued Gain Gain Gain Loan Date Disposal Interest Increase (Amortization) Impairment Interest and Book Value Change in Interest on Consid- (Loss) on (Loss) on (Loss) on Loan Number City State Type Acquired Date Prior Year (Decrease) /Accretion Recognized Other (8+9-10+11) Book Value Disposal eration Disposal Disposal Disposal 100012057 PHOENIX AZ 07/21/2015 28,945 28,945 28,945 100012165 SANTA CLARA CA 07/15/2015 41,516 41,516 41,516 100012246 ANDERSON SC 02/01/2016 37,937 37,937 37,937 100012302 BROOMFIELD CO 09/28/2015 37,935 37,935 37,935 100012652 OVERLAND PARK KS 04/29/2016 66,727 66,727 66,727 100012670 KANSAS CITY MO 04/26/2016 26,000 26,000 26,000 100012767 AUGUSTA GA 04/29/2016 41,123 41,123 41,123 100012770 TAMPA FL 06/10/2016 35,972 35,972 35,972 100013053 PORTSMOUTH VA 09/09/2016 21,067 21,067 21,067 100013054 BEAVERTON OR 09/01/2016 30,027 30,027 30,027 100013393 SALT LAKE CITY UT 03/03/2017 32,326 32,326 100013422 FREMONT CA 03/28/2017 21,719 21,719 0299999. Mortgages with partial repayments 1,265,800 1,319,845 1,319,845 0599999 - Totals 3,383,056 3,437,101 3,437,101
E02.1 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
Schedule BA - Part 2 - Other Long-Term Invested Assets Acquired and Additions Made N O N E
Schedule BA - Part 3 - Other Long-Term Invested Assets Disposed, Transferred or Repaid N O N E
E03 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE D - PART 3 Show All Long-Term Bonds and Stock Acquired During the Current Quarter 1 2 3 4 5 6 7 8 9 10 NAIC Desig- nation or Number of Paid for Accrued Market CUSIP Date Shares of Interest and Indicator Identification Description Foreign Acquired Name of Vendor Stock Actual Cost Par Value Dividends (a) Bonds - U.S. Governments 3130AB-XA-9 FEDERAL HOME LOAN BANK UNSEC 3.400% 08/09/32 08/02/2017 PIPER JAFFRAY, INC 9,994,000 10,000,000 1 3130AC-DN-1 FEDERAL HOME LOAN BANK UNSEC 3.220% 09/20/32 09/07/2017 PIPER JAFFRAY, INC 15,150,000 15,150,000 1 0599999. Subtotal - Bonds - U.S. Governments 25,144,000 25,150,000 XXX Bonds - Industrial and Miscellaneous (Unaffiliated) 00130H-BY-0 AES CORP SR UNSEC 5.125% 09/01/27 08/14/2017 J P MORGAN CHASE 5,000,000 5,000,000 3FE 05352A-AA-8 AVANTOR INC 144A 1ST LIEN 6.000% 10/01/24 09/22/2017 VARIOUS 6,086,250 6,000,000 4FE 172967-LP-4 CITIGROUP INC SR UNSEC 3.668% 07/24/28 07/17/2017 CITIGROUP 5,000,000 5,000,000 2FE 224044-CK-1 COX COMMUNICATIONS 144A SR UNSEC 4.600% 08/15/47 07/24/2017 VARIOUS 4,521,150 4,500,000 2FE 36221*-AC-1 GPT OPERATING PARTNERSHIP LP SER B GTD SR UNSEC NT 4.260% 12/15/25 09/27/2017 ALLISON-WILLIAMS 12,216,000 12,000,000 144,840 2Z 87470L-AD-3 TALLGRASS NRG PRTNR/FIN 144A SR UNSEC 5.500% 01/15/28 09/27/2017 BANK OF AMERICA 3,556,875 3,500,000 7,334 3FE 928563-AC-9 VMWARE INC SR UNSEC 3.900% 08/21/27 08/16/2017 J P MORGAN CHASE 6,976,480 7,000,000 2FE 929160-AV-1 VULCAN MATERIALS SR UNSEC 4.500% 06/15/47 07/07/2017 J P MORGAN CHASE 5,034,900 5,000,000 16,875 2FE 12117#-AA-9 BUREAU VERITAS HOLDINGS, INC. SR UNSEC NT 3.670% 09/01/27 D 09/01/2017 BANK OF AMERICA 3,000,000 3,000,000 2Z 89705P-AA-3 TRONOX FINANCE PLC 144A SR UNSEC 5.750% 10/01/25 D 09/25/2017 JEFFERIES & CO 2,030,000 2,000,000 1,597 4FE G2615@-AB-0 DCC TREASURY IRELAND 2013 LTD SERIES B SR UNSEC NT 4.040% 04/25/23 D 07/27/2017 STONE CASTLE 18,418,140 18,000,000 185,840 2 Q0697#-AB-2 AUSGRID FINANCE PTY LTD SERIES B SR SEC NT 3.600% 10/01/29 D 09/06/2017 CW BANK OF AUSTRALIA 5,000,000 5,000,000 2FE 3899999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) 76,839,795 76,000,000 356,486 XXX 8399997. Total - Bonds - Part 3 101,983,795 101,150,000 356,486 XXX 8399998. Total - Bonds - Part 5 XXX XXX XXX XXX 8399999. Total - Bonds 101,983,795 101,150,000 356,486 XXX 8999997. Total - Preferred Stocks - Part 3 XXX XXX
E04 8999998. Total - Preferred Stocks - Part 5 XXX XXX XXX XXX 8999999. Total - Preferred Stocks XXX XXX 9799997. Total - Common Stocks - Part 3 XXX XXX 9799998. Total - Common Stocks - Part 5 XXX XXX XXX XXX 9799999. Total - Common Stocks XXX XXX 9899999. Total - Preferred and Common Stocks XXX XXX 9999999 - Totals 101,983,795 XXX 356,486 XXX (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE D - PART 4 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter 1 2 3 4 5 6 7 8 9 10 Change In Book/Adjusted Carrying Value 16 17 18 19 20 21 22 11 12 13 14 15 Total Total NAIC Current Change in Foreign Desig- Year's Book/ Exchange Book/ Bond nation Prior Year Current Other Than Adjusted Change in Adjusted Foreign Interest/ Stated or Book/ Unrealized Year's Temporary Carrying Book Carrying Exchange Realized Stock Con- Market CUSIP Number of Adjusted Valuation (Amor- Impairment Value /Adjusted Value at Gain Gain Total Gain Dividends tractual In- Ident- For- Disposal Name Shares of Consid- Actual Carrying Increase/ tization)/ Recog- (11 + 12 - Carrying Disposal (Loss) on (Loss) on (Loss) on Received Maturity dicator ification Description eign Date of Purchaser Stock eration Par Value Cost Value (Decrease) Accretion nized 13) Value Date Disposal Disposal Disposal DuringYear Date (a) Bonds - U.S. Governments 362170-DZ-2 GNMA MORTGAGE SERIES 1 POOL 208120 10.000% 07/01/2017 PAYDOWN 87 87 88 87 87 5 08/15/2017 1 0599999. Subtotal - Bonds - U.S. Governments 87 87 88 87 87 5 XXX XXX Bonds - U.S. Special Revenues 3128MJ-S3-5 FGLMC G08537 3.000% 07/01/43 09/01/2017 PAYDOWN 612,437 612,437 589,375 590,482 21,955 21,955 612,437 12,180 07/01/2043 1FE 3128MJ-SS-0 FGLMC G08528 3.000% 04/01/43 09/01/2017 PAYDOWN 362,969 362,969 354,121 354,534 8,435 8,435 362,969 7,245 04/01/2043 1FE 312944-5W-7 FGLMC POOL A96261 4.000% 01/01/41 09/01/2017 PAYDOWN 431,852 431,852 422,877 423,682 8,170 8,170 431,852 11,097 01/01/2041 1FE 31339D-YK-8 FHLMC 2412-Z 6.500% 02/15/32 09/01/2017 PAYDOWN 10,381 10,381 9,665 9,962 419 419 10,381 444 02/15/2032 1FE 31339G-BY-6 FHLMC 2369 Z 6.500% 10/15/31 09/01/2017 PAYDOWN 15,815 15,815 14,816 15,284 531 531 15,815 683 10/15/2031 1FE 31339N-G2-6 FHLMC 2413 Z 6.500% 02/15/32 09/01/2017 PAYDOWN 22,850 22,850 20,961 21,835 1,015 1,015 22,850 990 02/15/2032 1FE 3133TV-NP-7 FHLMC 2433 EZ 6.500% 04/15/32 09/01/2017 PAYDOWN 218,444 218,444 205,376 211,670 6,774 6,774 218,444 9,562 04/15/2032 1FE 31359Q-DE-1 FNMA 1997-54 Z 6.500% 08/18/27 09/01/2017 PAYDOWN 10,509 10,509 9,046 9,934 575 575 10,509 459 08/18/2027 1FE 31359X-ZH-5 FNMA FNR 2000-5 ZA 6.500% 03/25/30 09/01/2017 PAYDOWN 26,754 26,754 27,953 27,586 (832) (832) 26,754 1,143 03/25/2030 1FE 31371H-YC-6 FNMA PC# 252807 8.000% 10/01/29 09/01/2017 PAYDOWN 8,954 8,954 9,169 9,083 (129) (129) 8,954 439 10/01/2029 1FE 31384V-LN-0 FNMA POOL 535033 7.500% 12/01/29 09/01/2017 PAYDOWN 2,460 2,460 2,463 2,457 3 3 2,460 127 12/01/2029 1FE 313920-WU-0 FNMA SERIES 2001-47 CLASS Z 6.000% 09/01/2017 PAYDOWN 168,931 168,931 156,762 162,346 6,585 6,585 168,931 6,806 09/25/2031 1FE 31392P-R7-2 FHLMC SERIES 2487 ZB 6.000% 07/15/32 09/01/2017 PAYDOWN 59,720 59,720 55,393 57,492 2,228 2,228 59,720 2,332 07/15/2032 1FE 31392R-MA-6 FHLMC 2470 CLASS Z 6.000% 07/15/32 09/01/2017 PAYDOWN 34,260 34,260 31,817 33,091 1,169 1,169 34,260 1,377 07/15/2032 1FE 31393G-V3-5 FHLMC 2533 Z 5.500% 12/15/32 09/01/2017 PAYDOWN 845,971 845,971 766,347 811,064 34,907 34,907 845,971 31,356 12/15/2032 1FE
E05 31394P-PA-5 FHLMC SERIES 2755 CLASS ZM 5.000% 09/01/2017 PAYDOWN 237,510 237,510 208,066 224,348 13,162 13,162 237,510 7,698 02/15/2034 1FE 31394Y-6U-3 FHLMC SERIES 2794 CLASS Z 5.000% 09/01/2017 PAYDOWN 94,365 94,365 84,350 89,813 4,552 4,552 94,365 2,846 05/15/2034 1FE 3199999. Subtotal - Bonds - U.S. Special Revenues 3,164,182 3,164,182 2,968,557 3,054,663 109,519 109,519 3,164,182 96,784 XXX XXX Bonds - Industrial and Miscellaneous (Unaffiliated) 00213M-AB-0 APX GROUP INC SEC 6.375% 12/01/19 08/28/2017 CALL 103.1880 2,010,102 1,948,000 1,948,000 1,948,000 62,102 62,102 2,010,102 92,104 12/01/2019 4FE 077454-AF-3 BELDEN CDT INC SR SUB 144A 5.500% 08/07/2017 CALL 102.9990 7,209,930 7,000,000 7,022,500 7,011,521 198,409 198,409 7,209,930 359,333 09/01/2022 3FE 126650-BP-4 CVS HEALTH CORP PASS THRU CERTS 6.036% 09/10/2017 REDEMPTION 100.0000 52,244 52,244 52,244 52,244 52,244 2,103 12/10/2028 2FE 126650-BQ-2 CVS HEALTH CORP PASS THRU CERTS 6.943% 09/10/2017 REDEMPTION 100.0000 46,778 46,778 46,778 46,778 46,778 2,166 01/10/2030 2FE 12665U-AA-2 CVS CAREMARK CORP 144A 1ST LIEN PASS THRU 09/10/2017 REDEMPTION 100.0000 38,308 38,308 38,308 38,308 38,308 1,202 01/10/2036 2FE 12669F-ZT-3 COUNTRYWIDE HOME LOANS SR 2004-8 CL 1A11 09/01/2017 PAYDOWN 76,950 76,950 72,246 73,942 3,008 3,008 76,950 2,663 07/25/2034 1FM 26138E-AH-2 DR PEPPER SNAPPLE GROUP CO GTD 6.820% 07/06/2017 CALL 104.1420 3,662,674 3,517,000 3,615,722 3,533,998 128,676 128,676 3,662,674 163,238 05/01/2018 2FE 35803Q-AD-9 FRESENIUS MED CARE US SR NTS 6.875% 07/15/2017 MATURITY 6,000,000 6,000,000 5,891,750 5,992,099 7,901 7,901 6,000,000 412,500 07/15/2017 3FE 36186X-AD-9 GMAC COMMERCIAL MILITARY BLIS SR 2012-BLIS 09/10/2017 REDEMPTION 100.0000 46,356 46,356 46,037 46,068 288 288 46,356 1,600 07/10/2050 1FE 39121J-AG-5 GREAT RIVER ENERGY 144A 1ST MTGE 7.233% 07/01/2017 REDEMPTION 100.0000 74,525 74,525 74,525 74,525 74,525 5,390 07/01/2038 1FE 501797-AL-8 L BRANDS INC SR UNSEC 6.875% 11/01/35 07/20/2017 MORGAN STANLEY 1,935,000 2,000,000 2,042,500 2,041,255 (635) (635) 2,040,620 (105,620) (105,620) 100,833 11/01/2035 3FE 744482-BH-2 P S CO NEW HAMPSHIRE 1ST MTGE 6.150% 09/01/2017 MATURITY 9,000,000 9,000,000 8,984,610 8,998,623 1,377 1,377 9,000,000 553,500 09/01/2017 1FE 84860*-AB-9 SPIRITS OF ST LOUIS BASKETBALL SR SEC NT 09/30/2017 REDEMPTION 100.0000 35,539 35,539 35,539 35,539 35,539 1,026 06/30/2036 2FE 989207-AC-9 ZEBRA TECHNOLOGIES CORP SR UNSEC 7.250% 08/07/2017 CALL 106.4526 3,801,423 3,571,000 3,642,420 3,619,325 182,098 182,098 3,801,423 209,995 10/15/2022 4FE 12657@-AA-7 CTL(HTCE) PASS-THROUGH TRUST PASS-THROUGH D 07/01/2017 REDEMPTION 100.0000 88,610 88,610 88,610 88,610 88,610 2,745 04/01/2027 2 L8038*-AA-4 SBM BALEIA AZUL S.A.R.L. SR NT 5.500% D 09/15/2017 REDEMPTION 100.0000 109,900 109,900 109,900 109,900 109,900 4,533 09/15/2027 3FE 3899999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) 34,188,339 33,605,210 33,711,689 33,710,735 583,224 583,224 34,293,959 (105,620) (105,620) 1,914,931 XXX XXX 8399997. Total - Bonds - Part 4 37,352,608 36,769,479 36,680,334 36,765,485 692,743 692,743 37,458,228 (105,620) (105,620) 2,011,720 XXX XXX 8399998. Total - Bonds - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8399999. Total - Bonds 37,352,608 36,769,479 36,680,334 36,765,485 692,743 692,743 37,458,228 (105,620) (105,620) 2,011,720 XXX XXX 8999997. Total - Preferred Stocks - Part 4 XXX XXX XXX 8999998. Total - Preferred Stocks - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8999999. Total - Preferred Stocks XXX XXX XXX 9799997. Total - Common Stocks - Part 4 XXX XXX XXX 9799998. Total - Common Stocks - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 9799999. Total - Common Stocks XXX XXX XXX 9899999. Total - Preferred and Common Stocks XXX XXX XXX 9999999 - Totals 37,352,608 XXX 36,680,334 36,765,485 692,743 692,743 37,458,228 (105,620) (105,620) 2,011,720 XXX XXX (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY
Schedule DB - Part A - Section 1 - Options, Caps, Floors, Collars, Swaps and Forwards Open N O N E
Schedule DB - Part B - Section 1 - Futures Contracts Open N O N E
Schedule DB - Part B - Section 1B - Brokers with whom cash deposits have been made N O N E
Schedule DB - Part D - Section 1 - Counterparty Exposure for Derivative Instruments Open N O N E
Schedule DB - Part D-Section 2 - Collateral for Derivative Instruments Open - Pledged By N O N E
Schedule DB - Part D-Section 2 - Collateral for Derivative Instruments Open - Pledged To N O N E
E06, E07, E08, E09 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE DL - PART 1 SECURITIES LENDING COLLATERAL ASSETS Reinvested Collateral Assets Owned Current Statement Date 1 2 3 4 5 6 7 NAIC CUSIP Designation/ Book/Adjusted Identification Description Code Market Indicator Fair Value Carrying Value Maturity Date 0599999. Total - U.S. Government Bonds XXX 1099999. Total - All Other Government Bonds XXX 1799999. Total - U.S. States, Territories and Possessions Bonds XXX 2499999. Total - U.S. Political Subdivisions Bonds XXX 3199999. Total - U.S. Special Revenues Bonds XXX 3899999. Total - Industrial and Miscellaneous (Unaffiliated) Bonds XXX 4899999. Total - Hybrid Securities XXX 5599999. Total - Parent, Subsidiaries and Affiliates Bonds XXX 6099999. Subtotal - SVO Identified Funds XXX 6199999. Total - Issuer Obligations XXX 6299999. Total - Residential Mortgage-Backed Securities XXX 6399999. Total - Commercial Mortgage-Backed Securities XXX 6499999. Total - Other Loan-Backed and Structured Securities XXX 6599999. Total - SVO Identified Funds XXX 6699999. Total Bonds XXX 7099999. Total - Preferred Stocks XXX 7599999. Total - Common Stocks XXX 7699999. Total - Preferred and Common Stocks XXX Cash (Schedule E Part 1 type) 000000-00-0 AUSTRALIA NEW ZEALAND LONDON 81,444 81,444 10/02/2017 000000-00-0 BANK OF MONTREAL, LONDON 81,445 81,445 10/03/2017 10513D-6U-9 BRANCH BANKING AND TRUST 81,444 81,444 10/04/2017 313589-ML-4 FNMA 814,378 814,378 10/02/2017 000000-00-0 RABOBANK NETHERLANDS 81,444 81,444 10/02/2017 000000-00-0 ROYAL BANK OF CANADA LONDON 81,445 81,445 10/02/2017 000000-00-0 SKANDANAVISKA ENSKILDA BANKEN, G.C. 81,444 81,444 10/02/2017 000000-00-0 STANDARD CHARTERED LONDON 81,444 81,444 10/02/2017 87019U-3L-1 SWEDBANK, NEWYORK 81,444 81,444 10/05/2017 9099999. Total - Cash (Schedule E Part 1 type) 1,465,932 1,465,932 XXX Cash Equivalents (Schedule E Part 2 type) 000000-00-0 DEUTSCHE BANK SECURITIES INC. 244,333 244,333 10/02/2017 000000-00-0 HSBC SECURITIES,INC. 286,480 286,480 10/02/2017 000000-00-0 MIZUHO SECURITIES USA INC 244,332 244,332 10/02/2017 000000-00-0 ML PIERCE FENNER & SMITH INC 59,271 59,271 10/02/2017 000000-00-0 RBS SECURITIES INC 325,777 325,777 10/02/2017 9199999. Total - Cash Equivalents (Schedule E Part 2 type) 1,160,193 1,160,193 XXX 9999999 - Totals 2,626,125 2,626,125 XXX General Interrogatories: 1. Total activity for the year to date Fair Value $ (1,264,288) Book/Adjusted Carrying Value $ (1,264,288) 2. Average balance for the year to date Fair Value $ 3,422,785 Book/Adjusted Carrying Value $ 3,422,785 3. Reinvested securities lending collateral assets book/adjusted carrying value included in this schedule by NAIC designation: NAIC 1 $ 2,056,015 NAIC 2 $ 570,110 NAIC 3 $ NAIC 4 $ NAIC 5 $ NAIC 6 $
E10 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE DL - PART 2 SECURITIES LENDING COLLATERAL ASSETS Reinvested Collateral Assets Owned Current Statement Date 1 2 3 4 5 6 7 NAIC CUSIP Designation/ Book/Adjusted Identification Description Code Market Indicator Fair Value Carrying Value Maturity Date NONE 9999999 - Totals XXX General Interrogatories: 1. Total activity for the year to date Fair Value $ Book/Adjusted Carrying Value $ 2. Average balance for the year to date Fair Value $ Book/Adjusted Carrying Value $
E11 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE E - PART 1 - CASH Month End Depository Balances 1 2 3 4 5 Book Balance at End of Each Month 9 During Current Quarter Amount of Amount of 6 7 8 Interest Received Interest Accrued Rate of During Current at Current Depository Code Interest Quarter Statement Date First Month Second Month Third Month * Bank of America Atlanta, GA 2,155,924 670,633 517,449 XXX Bank of America Hartford, CT (9,693,781) (8,288,246) (8,866,457) XXX Bank of New York Mellon Pittsburgh, PA 259,915 349,894 328,138 XXX JPMorgan Chase Bank New York, NY 249,626 120,363 2,181,072 XXX JPMorgan Chase Bank Springfield, IL (869,399) (505,162) (1,113,144) XXX Wells Fargo Bank Atlanta, GA 479,987 487,403 556,277 XXX 0199998. Deposits in ... 3 depositories that do not exceed the allowable limit in any one depository (See instructions) - Open Depositories XXX XXX 176,828 220,299 103,982 XXX 0199999. Totals - Open Depositories XXX XXX (7,240,900) (6,944,816) (6,292,683) XXX 0299998. Deposits in ... depositories that do not exceed the allowable limit in any one depository (See instructions) - Suspended Depositories XXX XXX XXX 0299999. Totals - Suspended Depositories XXX XXX XXX 0399999. Total Cash on Deposit XXX XXX (7,240,900) (6,944,816) (6,292,683) XXX 0499999. Cash in Company's Office XXX XXX XXX XXX XXX
0599999. Total - Cash XXX XXX (7,240,900) (6,944,816) (6,292,683) XXX
E12 STATEMENT AS OF SEPTEMBER 30, 2017 OF THE FIRST UNUM LIFE INSURANCE COMPANY SCHEDULE E - PART 2 - CASH EQUIVALENTS Show Investments Owned End of Current Quarter 1 2 3 4 5 6 7 8 Book/Adjusted Amount of Interest Amount Received Description Code Date Acquired Rate of Interest Maturity Date Carrying Value Due and Accrued During Year 0599999. Total - U.S. Government Bonds 1099999. Total - All Other Government Bonds 1799999. Total - U.S. States, Territories and Possessions Bonds 2499999. Total - U.S. Political Subdivisions Bonds 3199999. Total - U.S. Special Revenues Bonds Bonds - Industrial and Miscellaneous (Unaffiliated) - Issuer Obligations CONAGRA FOODS INC 09/29/2017 1.300 10/02/2017 8,544,074 617 DTE ELECTRIC CO 09/28/2017 1.150 10/03/2017 1,467,766 141 3299999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) - Issuer Obligations 10,011,840 758 3899999. Total - Industrial and Miscellaneous (Unaffiliated) Bonds 10,011,840 758 4899999. Total - Hybrid Securities 5599999. Total - Parent, Subsidiaries and Affiliates Bonds 6099999. Subtotal - SVO Identified Funds 7799999. Total - Issuer Obligations 10,011,840 758 7899999. Total - Residential Mortgage-Backed Securities 7999999. Total - Commercial Mortgage-Backed Securities 8099999. Total - Other Loan-Backed and Structured Securities 8199999. Total - SVO Identified Funds 8399999. Total Bonds 10,011,840 758
E13
8699999 - Total Cash Equivalents 10,011,840 758