Unum headquarters in downtown Chattanooga.“Beware of Greeks bearing bonds,” goes the joke among investors.
Columbus, Ga.-based insurer Aflac learned that $610 million lesson the hard way as the extent of its exposure to Greek and Portuguese debt became clear last week.
The indirect losses, through investments the company held in banks and financial firms, have cost Aflac nearly $1 billion for the year.
Chattanooga-based Unum, on the other hand, has taken a far more conservative approach. Company officials said that even the group of investments they worry about the most have generated unrealized gains for the year.
“We never had exposure to Greek banks, and our exposure to Europe is relatively small,” said Rick McKenney, executive vice president and chief financial officer at Unum.