Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 07, 2024 | Jun. 30, 2023 | |
Document Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-31792 | ||
Entity Registrant Name | CNO Financial Group, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-3108137 | ||
Entity Address, Address Line One | 11825 N. Pennsylvania Street | ||
Entity Address, City or Town | Carmel, | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46032 | ||
City Area Code | (317) | ||
Local Phone Number | 817-6100 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.6 | ||
Entity Common Stock, Shares Outstanding | 108,991,851 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: Portions of the Registrant's definitive proxy statement for the 2024 annual meeting of shareholders are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001224608 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, par value $0.01 per share | |||
Document Information | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | CNO | ||
Security Exchange Name | NYSE | ||
Rights To Purchase Series F Junior Participating Preferred Stock | |||
Document Information | |||
Title of 12(b) Security | Rights to purchase Series F Junior Participating Preferred Stock | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true | ||
5.125% Subordinated Debentures due 2060 | |||
Document Information | |||
Title of 12(b) Security | 5.125% Subordinated Debentures due 2060 | ||
Trading Symbol | CNOpA | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Indianapolis, Indiana |
Auditor Firm ID | 238 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturities, available for sale, at fair value (net of allowance for credit losses: 2023 - $42.9 and 2022 - $56.0; amortized cost: 2023 - $23,699.2 and 2022 - $23,384.2) | $ 21,506.2 | $ 20,353.4 |
Equity securities at fair value | 96.9 | 135.3 |
Mortgage loans (net of allowance for credit losses: 2023 - $15.4 and 2022 - $8.0) | 2,064.1 | 1,411.9 |
Policy loans | 128.5 | 121.6 |
Trading securities | 222.7 | 207.9 |
Investments held by variable interest entities (net of allowance for credit losses: 2023 - $3.1 and 2022 - $5.5; amortized cost: 2023 - $787.6 and 2022 - $1,134.2) | 768.6 | 1,077.6 |
Other invested assets | 1,353.4 | 1,034.7 |
Total investments | 26,140.4 | 24,342.4 |
Cash and cash equivalents - unrestricted | 774.5 | 575.7 |
Cash and cash equivalents held by variable interest entities | 114.5 | 69.2 |
Accrued investment income | 251.5 | 235.6 |
Present value of future profits | 180.7 | 203.7 |
Deferred acquisition costs | 1,944.4 | 1,770.9 |
Reinsurance receivables (net of allowance for credit losses: 2023 - $3.0 and 2022 - $2.0) | 4,040.7 | 4,223.4 |
Market risk benefit asset | 75.4 | 65.3 |
Income tax assets, net | 936.2 | 1,063.4 |
Assets held in separate accounts | 3.1 | 2.7 |
Other assets | 641.1 | 580.8 |
Total assets | 35,102.5 | 33,133.1 |
Liabilities for insurance products: | ||
Policyholder account balances | 15,667.8 | 15,234.2 |
Future policy benefits | 11,928.2 | 11,240.2 |
Market risk benefit liability | 7.4 | 11.3 |
Liability for life insurance policy claims | 62.1 | 64.1 |
Unearned and advanced premiums | 218.9 | 235 |
Liabilities related to separate accounts | 3.1 | 2.7 |
Other liabilities | 848.8 | 693.9 |
Investment borrowings | 2,189.3 | 1,639.5 |
Borrowings related to variable interest entities | 820.8 | 1,104.6 |
Notes payable – direct corporate obligations | 1,140.5 | 1,138.8 |
Total liabilities | 32,886.9 | 31,364.3 |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: 2023 - 109,357,540 and 2022 - 114,343,070) | 1.1 | 1.1 |
Additional paid-in capital | 1,891.5 | 2,033.8 |
Accumulated other comprehensive loss | (1,576.8) | (1,957.3) |
Retained earnings | 1,899.8 | 1,691.2 |
Total shareholders' equity | 2,215.6 | 1,768.8 |
Total liabilities and shareholders' equity | $ 35,102.5 | $ 33,133.1 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturities, available for sale, allowance for credit losses | $ 42.9 | $ 56 |
Fixed maturities, available for sale, amortized cost | 23,699.2 | 23,384.2 |
Mortgage loans, allowance for credit losses | 15.4 | 8 |
Investments held by variable interest entities, allowance for credit losses | 3.1 | 5.5 |
Investments held by variable interest entities, amortized cost | 787.6 | 1,134.2 |
Reinsurance receivables, allowance for credit losses | $ 3 | $ 2 |
Shareholders' equity: | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 8,000,000,000 | 8,000,000,000 |
Common stock, shares issued (in shares) | 109,357,540 | 114,343,070 |
Common stock, shares outstanding (in shares) | 109,357,540 | 114,343,070 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Insurance policy income | $ 2,505.5 | $ 2,499.8 | $ 2,523.4 |
Net investment income (loss): | |||
General account assets | 1,250.2 | 1,179 | 1,140.2 |
Policyholder and other special-purpose portfolios | 249.5 | (163.1) | 280.5 |
Investment gains (losses): | |||
Realized investment gains (losses) | (69.3) | (17.9) | 21.3 |
Other investment gains (losses) | 0.3 | (117.5) | (2.2) |
Total investment gains (losses) | (69) | (135.4) | 19.1 |
Fee revenue and other income | 210.6 | 196.5 | 159 |
Total revenues | 4,146.8 | 3,576.8 | 4,122.2 |
Benefits and expenses: | |||
Insurance policy benefits | 2,318.2 | 1,615.4 | 2,188.1 |
Liability for future policy benefits remeasurement loss | (21.2) | (15.6) | (51.3) |
Change in fair value of market risk benefits | (21.3) | (140.2) | (23.1) |
Interest expense | 238.6 | 137 | 95.4 |
Amortization of deferred acquisition costs and present value of future profits | 227.4 | 212.8 | 198.2 |
Other operating costs and expenses | 1,048.3 | 950.9 | 981.8 |
Total benefits and expenses | 3,790 | 2,760.3 | 3,389.1 |
Income before income taxes | 356.8 | 816.5 | 733.1 |
Income tax expense | 80.3 | 185.9 | 162.8 |
Net income | $ 276.5 | $ 630.6 | $ 570.3 |
Basic: | |||
Weighted average shares outstanding (in shares) | 113,275 | 115,733 | 128,400 |
Net income (in USD per share) | $ 2.44 | $ 5.45 | $ 4.44 |
Diluted: | |||
Weighted average shares outstanding (in shares) | 115,124 | 117,717 | 131,126 |
Net income (in USD per share) | $ 2.40 | $ 5.36 | $ 4.35 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 276.5 | $ 630.6 | $ 570.3 |
Other comprehensive income (loss), before tax: | |||
Unrealized gains (losses) on investments | 823.6 | (6,028.4) | (486.7) |
Adjustment to discount rate for liability for future policy benefits | (367.3) | 2,971.6 | 854.1 |
Adjustment to instrument-specific credit risk for market risk benefits | (7.4) | 0.1 | 2.9 |
Reclassification adjustments: | |||
For net realized investment (gains) losses included in net income | 37.9 | 60.5 | (29.4) |
Other comprehensive income (loss) before tax | 486.8 | (2,996.2) | 340.9 |
Income tax (expense) benefit related to items of accumulated other comprehensive income (loss) | (106.3) | 665.2 | (73.5) |
Other comprehensive income (loss), net of tax | 380.5 | (2,331) | 267.4 |
Comprehensive income (loss) | $ 657 | $ (1,700.4) | $ 837.7 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | As recast | Common stock | Common stock As recast | Additional paid-in capital | Additional paid-in capital As recast | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) As recast | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Retained earnings As recast |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 135,279,000 | 135,279,000 | |||||||||||
Balance, beginning of year at Dec. 31, 2020 | $ 5,484.2 | $ (2,210.7) | $ 3,273.5 | $ 1.3 | $ 1.3 | $ 2,544.5 | $ 2,544.5 | $ 2,186.1 | $ (2,079.8) | $ 106.3 | $ 752.3 | $ (130.9) | $ 621.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 570.3 | 570.3 | 570.3 | ||||||||||
Other comprehensive income (loss), net of tax | $ 267.4 | 267.4 | |||||||||||
Common stock repurchased (in shares) | (16,600,000) | (16,561,000) | |||||||||||
Common stock repurchased | $ (402.4) | $ (0.1) | (402.3) | ||||||||||
Dividends on common stock | (66.1) | (66.1) | |||||||||||
Employee benefit plans, net of shares used to pay tax withholdings (in shares) | 1,659,000 | ||||||||||||
Employee benefit plans, net of shares used to pay tax withholdings | 42 | 42 | |||||||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 120,377,000 | ||||||||||||
Balance, end of year at Dec. 31, 2021 | 3,684.7 | 3,684.7 | $ 1.2 | 2,184.2 | 373.7 | 1,125.6 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 630.6 | 630.6 | 630.6 | ||||||||||
Other comprehensive income (loss), net of tax | $ (2,331) | (2,331) | |||||||||||
Common stock repurchased (in shares) | (7,600,000) | (7,612,000) | |||||||||||
Common stock repurchased | $ (180) | $ (0.1) | (179.9) | ||||||||||
Dividends on common stock | (65) | (65) | |||||||||||
Employee benefit plans, net of shares used to pay tax withholdings (in shares) | 1,578,000 | ||||||||||||
Employee benefit plans, net of shares used to pay tax withholdings | $ 29.5 | 29.5 | |||||||||||
Balance, end of period (in shares) at Dec. 31, 2022 | 114,343,070 | 114,343,000 | |||||||||||
Balance, end of year at Dec. 31, 2022 | $ 1,768.8 | $ 1,768.8 | $ 1.1 | 2,033.8 | (1,957.3) | 1,691.2 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 276.5 | 276.5 | |||||||||||
Other comprehensive income (loss), net of tax | $ 380.5 | 380.5 | |||||||||||
Common stock repurchased (in shares) | (6,600,000) | (6,557,000) | |||||||||||
Common stock repurchased | $ (165.1) | (165.1) | |||||||||||
Dividends on common stock | (67.9) | (67.9) | |||||||||||
Employee benefit plans, net of shares used to pay tax withholdings (in shares) | 1,572,000 | ||||||||||||
Employee benefit plans, net of shares used to pay tax withholdings | $ 22.8 | 22.8 | |||||||||||
Balance, end of period (in shares) at Dec. 31, 2023 | 109,357,540 | 109,358,000 | |||||||||||
Balance, end of year at Dec. 31, 2023 | $ 2,215.6 | $ 1.1 | $ 1,891.5 | $ (1,576.8) | $ 1,899.8 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Insurance policy income | $ 2,285.2 | $ 2,300.2 | $ 2,341.8 |
Net investment income | 1,328.9 | 1,154.5 | 1,073.1 |
Fee revenue and other income | 205.3 | 149.2 | 142.5 |
Insurance policy benefits | (1,611.1) | (1,635.8) | (1,661.1) |
Interest expense | (232.5) | (120.9) | (92.8) |
Deferrable policy acquisition costs | (377.9) | (336) | (304.2) |
Other operating costs | (955.9) | (981.9) | (920.8) |
Income taxes | (59.1) | (33.9) | 19.8 |
Net cash from operating activities | 582.9 | 495.4 | 598.3 |
Cash flows from investing activities: | |||
Sales of investments | 1,388.6 | 3,253.6 | 1,823.6 |
Maturities and redemptions of investments | 1,397 | 1,550.7 | 2,880.3 |
Purchases of investments | (3,591.9) | (6,482) | (6,135.2) |
Net purchases of trading securities | (29.4) | (42.4) | (19.5) |
Other | (36.6) | (61.2) | (75.3) |
Net cash used by investing activities | (872.3) | (1,781.3) | (1,526.1) |
Cash flows from financing activities: | |||
Issuance of common stock | 13.2 | 13.5 | 21.5 |
Payments to repurchase common stock | (166.1) | (190.1) | (407.8) |
Common stock dividends paid | (68.1) | (64.8) | (65.7) |
Amounts received for deposit products | 2,111.7 | 3,022.6 | 2,405.1 |
Withdrawals from deposit products | (1,696.2) | (1,461.4) | (1,352.5) |
Proceeds from financing arrangements | 80.3 | 0 | 0 |
Payments on financing arrangements | (6.2) | 0 | 0 |
Issuance of investment borrowings: | |||
Federal Home Loan Bank | 995.5 | 285 | 795.8 |
Payments on investment borrowings: | |||
Federal Home Loan Bank | (445.8) | (361.3) | (722.4) |
Related to variable interest entities and other | (284.8) | (44.4) | (5.4) |
Debt issuance costs | 0 | 0 | (1) |
Net cash provided by financing activities | 533.5 | 1,199.1 | 667.6 |
Net increase (decrease) in cash and cash equivalents | 244.1 | (86.8) | (260.2) |
Cash and cash equivalents - unrestricted and held by variable interest entities, beginning of year | 644.9 | 731.7 | 991.9 |
Cash and cash equivalents - unrestricted and held by variable interest entities, end of year | $ 889 | $ 644.9 | $ 731.7 |
BUSINESS AND BASIS OF PRESENTAT
BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND BASIS OF PRESENTATION | BUSINESS AND BASIS OF PRESENTATION CNO Financial Group, Inc., a Delaware corporation ("CNO"), is a holding company for a group of insurance companies that develop, market and administer health insurance, annuity, individual life insurance and other insurance products. The terms "CNO Financial Group, Inc.", "CNO", the "Company", "we", "us", and "our" as used in these financial statements refer to CNO and its subsidiaries. Such terms, when used to describe insurance business and products, refer to the insurance business and products of CNO's insurance subsidiaries. We focus on serving middle-income pre-retiree and retired Americans, which we believe are attractive, underserved, high growth markets. We sell our products through exclusive agents, independent producers (some of whom sell one or more of our product lines exclusively) and direct marketing. We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We have reclassified certain amounts from the prior periods to conform to the 2023 presentation. These reclassifications have no effect on net income or shareholders' equity. Effective January 1, 2023, we adopted Accounting Standards Update 2018-12 ("ASU 2018-12") related to targeted improvements to the accounting for long-duration insurance contracts, with a transition date of January 1, 2021 (the "Transition Date"). The adoption of ASU 2018-12 impacted accounting and presentation related to long-duration insurance contracts and certain related balances for the years ended December 31, 2022 and 2021. Amounts within these financial statements, which were previously presented, have been recast to conform with the current accounting and presentation under ASU 2018-12. Disclosures of the impacts of ASU 2018-12 as of the Transition Date are included within the tables in the note to the consolidated financial statements entitled "Summary of Significant Accounting Policies - Adopted Accounting Standards." When we prepare financial statements in conformity with GAAP, we are required to make estimates and assumptions that significantly affect reported amounts of various assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting periods. For example, we use significant estimates and assumptions to calculate values for deferred acquisition costs, the present value of future profits, fair value measurements of certain investments (including derivatives), allowance for credit losses and other-than-temporary impairments of investments, assets and liabilities related to income taxes, liabilities for insurance products, liabilities related to litigation and guaranty fund assessment accruals. If our future experience differs from these estimates and assumptions, our financial statements could be materially affected. The accompanying financial statements include the accounts of the Company and its subsidiaries. Our consolidated financial statements exclude transactions between us and our consolidated affiliates, or among our consolidated affiliates. In February 2021, we acquired DirectPath, LLC ("DirectPath", now known as Optavise, LLC ("Optavise") subsequent to its name change in April 2022), a leading national provider of year-round, technology-driven employee benefits management services to employers and employees. Optavise provides personalized benefits education, advocacy and transparency, and communications compliance services that help employers reduce healthcare costs and assist employees with making informed benefits decisions. The base purchase price was $50 million with an additional earn‐out if certain financial targets were achieved. The transaction was funded from holding company cash. The amount paid, net of cash held by DirectPath on the date of acquisition, was $46.2 million and is classified as other investing activities on the consolidated statement of cash flows. The net assets acquired totaled $53 million and were primarily comprised of goodwill and other intangible assets of approximately $48 million. The tangible assets acquired and liabilities assumed were recorded at their carrying values which approximated fair value. The intangible assets were recorded at fair value based on various assumptions determined by the Company to be reasonable at the date of acquisition including long-term growth rate, normalized net working capital, internal rate of return, economic life and discount rate. In addition, we recognized advisory and legal expenses of $3 million in connection with the acquisition (of which, $2.5 million was recognized in the first quarter of 2021). Another company acquired in 2019, Web Benefits Design Corporation ("WBD"), has been operating on an integrated basis with Optavise and was legally merged into Optavise during 2023. Goodwill and other intangible assets of Optavise totaled approximately $102 million at December 31, 2023. The business of Optavise is included in our fee income segment. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investments Fixed maturity securities include available for sale bonds and redeemable preferred stocks. We carry these investments at estimated fair value. We record any unrealized gain or loss, net of tax and related adjustments, as a component of shareholders’ equity. Equity securities include investments in common stock, exchange-traded funds and non-redeemable preferred stock. We carry these investments at estimated fair value. Changes in the fair value of equity securities are recognized in net income. Mortgage loans held in our investment portfolio are carried at amortized unpaid balance, net of allowance for estimated credit losses. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Payment terms specified for mortgage loans may include a prepayment penalty for unscheduled payoff of the investment. Prepayment penalties are recognized as investment income when received. The allowance for estimated credit losses is measured using a loss-rate method on an individual asset basis. Inputs used include asset-specific characteristics, current economic conditions, historical loss information and reasonable and supportable forecasts about future economic conditions. Policy loans are stated at current unpaid principal balances. Policy loans are collateralized by the cash surrender value of the life insurance policy. Interest income is recorded as earned using the contractual interest rate. Trading securities include: (i) investments purchased with the intent of selling in the near term to generate income; and (ii) certain fixed maturity securities containing embedded derivatives for which we have elected the fair value option. The change in fair value of the income generating investments is recognized in income from policyholder and other special-purpose portfolios (a component of net investment income). The change in fair value of securities with embedded derivatives is recognized in other investment gains (losses). Other invested assets include: (i) call options purchased in an effort to offset or hedge the effects of certain policyholder benefits related to our fixed indexed annuity and life insurance products; (ii) Company-owned life insurance ("COLI"); (iii) investments in the common stock of the Federal Home Loan Bank ("FHLB"); and (iv) certain non-traditional investments. We carry the call options at estimated fair value as further described in the section of this note entitled "Accounting for Derivatives". We carry COLI at its cash surrender value which approximates its net realizable value. Non-traditional investments include investments in certain limited partnerships and hedge funds which are accounted for using the equity method. In accounting for limited partnerships and hedge funds, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is generally three months prior to the end of our reporting period. Interest income on fixed maturity securities is recognized when earned using a constant effective yield method giving effect to amortization of premiums and accretion of discounts. Prepayment fees are recognized when earned. Dividends on equity securities are recognized on the ex-dividend date. When we sell a security (other than trading securities), we report the difference between the sale proceeds and amortized cost (determined based on specific identification) as a realized investment gain or loss. When an available for sale fixed maturity security's fair value is below the amortized cost, the security is considered impaired. If a portion of the decline is due to credit-related factors, we separate the credit loss component of the impairment from the amount related to all other factors. The credit loss component is recorded as an allowance and reported in other investment gains (losses) (limited to the difference between estimated fair value and amortized cost). The impairment related to all other factors (non-credit factors) is reported in accumulated other comprehensive income along with unrealized gains related to fixed maturity investments, available for sale, net of tax and related adjustments. The allowance is adjusted for any additional credit losses and subsequent recoveries. When recognizing an allowance associated with a credit loss, the cost basis is not adjusted. When we determine a security is uncollectable, the remaining amortized cost will be written off. In determining the credit loss component, we discount the estimated cash flows on a security by security basis. We consider the impact of macroeconomic conditions on inputs used to measure the amount of credit loss. For most structured securities, cash flow estimates are based on bond-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayment speeds and structural support, including overcollateralization, excess spread, subordination and guarantees. For corporate bonds, cash flow estimates are derived by considering asset type, rating, time to maturity, and applying an expected loss rate. If we intend to sell an impaired fixed maturity security, available for sale, or identify an impaired fixed maturity security, available for sale, for which it is more likely than not we will be required to sell before anticipated recovery, the difference between the fair value and the amortized cost is included in other investment gains (losses) and the fair value becomes the new amortized cost. The new cost basis is not adjusted for any subsequent recoveries in fair value. The Company reports accrued investment income separately from fixed maturities, available for sale, and has elected not to measure an allowance for credit losses for accrued investment income. Accrued investment income is written off through net investment income at the time the issuer of the bond defaults or is expected to default on payments. Cash and Cash Equivalents Cash and cash equivalents include invested cash and other investments purchased with original maturities of less than three months. We carry them at amortized cost, which approximates estimated fair value. It is the Company's policy to offset negative cash balances with positive balances in other accounts with the same counterparty when agreements are in place permitting legal right of offset. Deferred Acquisition Costs, Present Value of Future Profits and Sales Inducements Deferred acquisition costs represent policy acquisition costs that have been capitalized and are subject to amortization. Capitalized costs are incremental costs directly related to the successful acquisition of new or renewal insurance contracts. Such costs consist primarily of commissions, underwriting, sales and contract issuance and processing expenses. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. Deferred acquisition costs are amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. For life and health insurance products, the constant level basis used is policy counts. For all annuity products, the constant level basis used is the initial deposit in force. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on our experience, industry data, and other factors and are consistent with those used for the liability for future policy benefits. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at the time. Unexpected lapses, due to higher mortality and lapse experience than expected, are recognized in the current period as a reduction of the capitalized balances. Changes in future estimates are recognized prospectively over the remaining expected contract term. The carrying amount of deferred acquisition costs is not subject to recovery testing upon the adoption of ASU 2018-12. The present value of future profits is the value assigned to the right to receive future cash flows from policyholder insurance contracts existing at September 10, 2003 (the "Effective Date", the effective date of the bankruptcy reorganization of Conseco, Inc., an Indiana corporation (our "Predecessor")). The present value of future profits is amortized in the same manner as described above for deferred acquisition costs. Certain of our annuity products offer sales inducements to contract holders in the form of enhanced crediting rates or bonus payments in the initial period of the contract. Certain of our life insurance products offer persistency bonuses credited to the contract holder's balance after the policy has been outstanding for a specified period of time. These enhanced rates and persistency bonuses are considered sales inducements in accordance with GAAP. Such amounts are deferred and amortized in the same manner as deferred acquisition costs (and are classified as deferred acquisition costs in the consolidated balance sheet). Unlike deferred acquisition costs, such amounts are considered contractual cash flows and, as a result, are subject to periodic recovery testing. Market Risk Benefits Market risk benefits ("MRBs") are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Many of our fixed indexed annuity products include a guaranteed living withdrawal benefit ("GLWB") that is considered a MRB. MRBs are measured at fair value using an option-based valuation model based on amount of exposure, market data, Company experience and other factors. The calculation of MRBs includes market assumptions (interest rate, equity returns, volatility and dividend yields) and nonmarket assumptions (mortality rates, surrender and withdrawal rates, GLWB utilization and spreads). Changes in fair value are recognized in earnings each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in other comprehensive income (loss). MRBs in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. Policyholder Account Balances Policyholder account balances represent the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. It includes the accumulated account deposits, plus interest credited, less policyholder withdrawals and, if applicable, charges assessed. This balance also includes liabilities for the funding agreement-backed notes ("FABN"). Total liabilities for insurance products related to our fixed indexed annuities are comprised of: (i) the liability related to the host contract; and (ii) the fair market value of the embedded derivatives as summarized below (dollars in millions): December 31, December 31, Fixed indexed annuity insurance liabilities: Host contract liability $ 8,487.0 $ 7,856.4 Embedded derivatives at fair value 1,376.7 1,297.0 Total fixed indexed annuity insurance liabilities $ 9,863.7 $ 9,153.4 For presentation in the consolidated balance sheet, the total fixed indexed annuity insurance liability balance is bifurcated between: (i) policyholder account balances (which is the total of all current balances accruing to the policyholder under the terms and conditions of the policies assuming the contracts will continue in force); and (ii) the difference between the total fixed indexed annuity insurance liabilities summarized above and the policyholder account balances, which is classified as future policy benefits. These classifications are summarized below (dollars in millions): December 31, December 31, Policyholder account balances $ 10,138.6 $ 9,644.8 Future policy benefits (274.9) (491.4) Total fixed indexed annuity insurance liabilities $ 9,863.7 $ 9,153.4 When the total policyholder account balance exceeds the total fixed indexed annuity insurance liabilities, a negative future policy benefit balance will occur. Liability for Future Policy Benefits The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses (where the timing and amount of payment depends on policyholder mortality or morbidity), less the present value of estimated future net premiums to be collected from policyholders (where net premiums are gross premiums multiplied by the net-to-gross ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. The liability is estimated using current assumptions that include discount rates, mortality, morbidity, lapse/withdrawal rates and expenses. Such assumptions are based on our historical experience, industry data, and other factors that are inherently uncertain. This liability also includes the amount of total reserves above (below) policyholder account balances for our fixed indexed annuity products due to the valuation of the related embedded derivative as described above. The liability for future policy benefits is established using a net premium ratio approach where net premiums (the portion of gross premiums required to fund expected insurance benefits and claims settlement expenses) under the contract are accrued each period as the liability for future policy benefits. The net premium ratio used to accrue the liability for future policy benefits in each period is determined by using the historical and present value of expected future benefits and claim adjustment expenses for the cohort divided by the historical and present value of expected future gross premiums for the cohort. Our long duration insurance contracts are grouped into annual calendar-year cohorts primarily based on the contractual issue date, marketing distribution channel, legal entity and product type. Single premium contracts are grouped into separate cohorts from other traditional products. Riders are generally combined with the base policy. Insurance contracts which were issued prior to the Effective Date are grouped by marketing distribution channel, legal entity and product type in a single issue year cohort. The liability is adjusted for differences between actual and expected experience. We review our historical and future cash flow assumptions quarterly and update the net premium ratio used to calculate the liability each time the assumptions are changed. Each quarter, we update our estimates of cash flows expected over the entire life of a group of contracts using actual historical experience and current future cash flow assumptions. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. This amount is then compared to the carrying amount of the liability as of that same date, before the updating of cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss and is presented as a separate component of benefit expense in the consolidated statement of operations. In subsequent periods, the revised net premiums are used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums is determined to be insufficient to provide for expected future policy benefits and claim settlement costs, the net to gross ratio is capped at 100 percent. When this occurs, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield ("A" credit rated corporate bond yield) at contract inception for contracts issued after January 1, 2021. The contract inception date for contracts issued by the Predecessor is September 10, 2003. The discount rate in effect at contract inception is locked-in for the calculation of the net to gross ratio and accretion of interest cost on the liability is recorded through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current rate at each reporting period with the impact resulting from such updates recorded in other comprehensive income. We develop discount rate curves for discounting cash flows to calculate the liability for future policy benefits based on the duration characteristics of the underlying liabilities. For liability cash flows that are projected beyond the duration of market-observable A-credit-rated fixed-income instruments, we use the last market-observable yield level and use linear interpolation to determine yield assumptions for durations that do not have market-observable yields. Liability for Life Insurance Policy Claims The liability for life insurance policy claims include life policy and contract claims, including incurred but not reported claims. The liability for these claims is based on our estimated ultimate cost to settle all claims that have been incurred as of the reporting date. Such amounts are estimated based on an analysis of historical patterns of claims, which are continually reviewed and updated. Adjustments resulting from differences between our estimates and actual payments are recognized in the period the estimates are made or claims are paid. Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability ("DPL"). Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policy benefits, including discount rate, mortality, lapses and expenses. The DPL is amortized and recognized in insurance policy benefits in proportion to insurance in force for life insurance contracts and expected future benefit payments for annuity contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance. We review and update the estimate of cash flows for the DPL at the same time as the estimate of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period and any difference is recognized as either a charge or credit to insurance policy benefits. Recognition of Insurance Policy Income and Related Benefits and Expenses on Insurance Contracts For interest-sensitive life and annuity contracts that do not involve significant mortality or morbidity risk and funding agreements, the amounts collected from policyholders are considered deposits and are not included in revenue. Revenues for these contracts consist of charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders' account balances. Such revenues are recognized when the service or coverage is provided, or when the policy is surrendered. Premiums from individual life products (other than interest-sensitive life contracts) and health products are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. We establish claim reserves based on our estimate of the loss to be incurred on reported claims plus estimates of incurred but unreported claims based on our past experience. Accounting for Certain Marketing Agreements Bankers Life and Casualty Company ("Bankers Life") has entered into various distribution and marketing agreements with other insurance companies to use Bankers Life's exclusive agents to distribute prescription drug and Medicare Advantage plans. These agreements allow Bankers Life to offer these products to current and potential future policyholders without investment in management and infrastructure. We receive fee income related to the plans sold through our distribution channels and incur distribution expenses paid to our agents who sell such products. The recognition of fee revenue and the distribution expenses paid to our agents results from approval of an application by the third-party insurance companies, which we define as our customers. We recognize the net lifetime revenue expected to be earned on these sales, but only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The assumptions and constraints used to recognize such net revenue are based on available historical data. To the extent we make changes to the assumptions we use to calculate revenue on these products, we will recognize the impact of the changes in the period in which the change is made. Reinsurance In the normal course of business, we seek to limit our loss exposure on any single insured or to certain groups of policies by ceding reinsurance to other insurance enterprises. We currently retain no more than $0.8 million of mortality risk on any one policy. We diversify the risk of reinsurance loss by using a number of reinsurers that have strong claims-paying ratings. In each case, the ceding CNO subsidiary is directly liable for claims reinsured in the event the assuming company is unable to pay. We have determined that each of our reinsurance agreements provide indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Such reinsurance permits recovery of the reinsured losses from reinsurers, although it does not discharge our primary liability as the direct insurer of the risks reinsured. The reinsurance recoverable for traditional and limited-payment contracts is generally measured using a net premium ratio approach to accrue the projected net gain or loss on reinsurance in proportion to the gross premiums of the underlying reinsured cohorts. Such amount is adjusted on a quarterly basis for actual experience and at least once a year for any changes in cash flow assumptions. The cost of reinsurance ceded totaled $195.2 million, $206.2 million and $222.4 million in 2023, 2022 and 2021, respectively. We deduct this cost from insurance policy income. Reinsurance recoveries netted against insurance policy benefits totaled $409.5 million, $388.7 million and $371.1 million in 2023, 2022 and 2021, respectively. From time to time, we assume insurance from other companies. Any costs associated with the assumption of insurance are amortized consistent with the method used to amortize deferred acquisition costs. Reinsurance premiums assumed totaled $16.6 million, $18.7 million and $20.3 million in 2023, 2022 and 2021, respectively. Insurance policy benefits related to reinsurance assumed totaled $21.8 million, $25.3 million and $26.3 million in 2023, 2022 and 2021, respectively. Income Taxes Our income tax expense includes deferred income taxes arising from temporary differences between the financial reporting and tax bases of assets and liabilities and net operating loss carryforwards ("NOLs"). Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which temporary differences are expected to be recovered or paid. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period when the changes are enacted. A reduction of the net carrying amount of deferred tax assets by establishing a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. In assessing the need for a valuation allowance, all available evidence, both positive and negative, shall be considered to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, our experience with operating loss and tax credit carryforwards expiring unused, and tax planning strategies. We evaluate the need to establish a valuation allowance for our deferred income tax assets on an ongoing basis. The realization of our deferred tax assets depends upon generating sufficient future taxable income of the appropriate type during the periods in which our temporary differences become deductible and before our NOLs expire. Investments in Variable Interest Entities We have concluded that we are the primary beneficiary with respect to certain variable interest entities ("VIEs"), which are consolidated in our financial statements. All of the VIEs are collateralized loan trusts that were established to issue securities to finance the purchase of corporate loans and other permitted investments. The assets held by the trusts are legally isolated and not available to the Company. The liabilities of the VIEs are expected to be satisfied from the cash flows generated by the underlying loans held by the trusts, not from the assets of the Company. The Company has no financial obligation to the VIEs beyond its investment in each VIE. The investment portfolios held by the VIEs are primarily comprised of commercial bank loans to corporate obligors which are almost entirely rated below-investment grade. Refer to the note to the consolidated financial statements entitled "Investments in Variable Interest Entities" for additional information about VIEs. In addition, the Company, in the normal course of business, makes passive investments in structured securities issued by VIEs for which the Company is not the investment manager. These structured securities include asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities. Our maximum exposure to loss on these securities is limited to our cost basis in the investment. We have determined that we are not the primary beneficiary of these structured securities due to the relative size of our investment in comparison to the total principal amount of the individual structured securities and the level of credit subordination which reduces our obligation to absorb gains or losses. At December 31, 2023, we held investments in various limited partnerships and hedge funds, in which we are not the primary beneficiary, totaling $521.4 million (classified as other invested assets). At December 31, 2023, we had unfunded commitments to these partnerships totaling $514.2 million. Our maximum exposure to loss on these investments is limited to the amount of our investment. Investment Borrowings Three of the Company's insurance subsidiaries (Bankers Life, Washington National Insurance Company ("Washington National") and Colonial Penn Life Insurance Company) are members of the FHLB. As members of the FHLB, our insurance subsidiaries have the ability to borrow on a collateralized basis from the FHLB. We are required to hold certain minimum amounts of FHLB common stock as a condition of membership in the FHLB, and additional amounts based on the amount of the borrowings. At December 31, 2023, the carrying value of the FHLB common stock was $94.6 million. As of December 31, 2023, collateralized borrowings from the FHLB totaled $2.2 billion and the proceeds were used to purchase fixed maturity securities. The borrowings are classified as investment borrowings in the accompanying consolidated balance sheet. The borrowings are collateralized by investments with an estimated fair value of $2.7 billion at December 31, 2023, which are maintained in a custodial account for the benefit of the FHLB. Substantially all of such investments are classified as fixed maturities, available for sale, in our consolidated balance sheet. The following summarizes the terms of the borrowings from the FHLB by our insurance subsidiaries (dollars in millions): Amount Maturity Interest rate at borrowed date December 31, 2023 $ 100.0 April 2024 Variable rate – 5.624% 22.0 May 2024 Variable rate – 5.672% 100.0 June 2024 Variable rate – 5.645% 15.5 July 2024 Fixed rate – 1.990% 27.0 August 2024 Fixed rate – .640% 21.7 May 2025 Variable rate – 5.718% 18.1 June 2025 Fixed rate – 2.940% 12.5 June 2025 Variable rate – 5.970% 125.0 September 2025 Variable rate – 5.750% 100.0 October 2025 Variable rate – 5.874% 100.0 October 2025 Variable rate – 5.874% 57.7 October 2025 Variable rate – 5.828% 50.0 November 2025 Variable rate – 5.813% 12.5 December 2025 Variable rate – 5.986% 50.0 January 2026 Variable rate – 5.906% 50.0 January 2026 Variable rate – 5.885% 100.0 January 2026 Variable rate – 5.788% 15.0 January 2026 Variable rate – 6.067% 21.8 May 2026 Variable rate – 5.678% 50.0 May 2026 Variable rate – 5.670% 75.0 December 2026 Variable rate – 5.742% 75.0 January 2027 Variable rate – 5.809% 50.0 January 2027 Variable rate – 5.893% 50.0 January 2027 Variable rate – 5.798% 100.0 February 2027 Variable rate – 5.784% 50.0 April 2027 Variable rate – 5.635% 50.0 May 2027 Variable rate – 5.645% 100.0 June 2027 Variable rate – 5.770% 10.0 June 2027 Variable rate – 5.993% 50.0 July 2027 Variable rate – 6.005% 50.0 July 2027 Variable rate – 6.023% 100.0 August 2027 Variable rate – 6.038% 75.0 January 2028 Variable rate – 5.778% 50.0 January 2028 Variable rate – 5.933% 50.0 January 2028 Variable rate – 5.864% 34.5 February 2028 Variable rate – 5.898% 21.0 February 2028 Variable rate – 5.784% 100.0 February 2028 Variable rate – 5.804% 15.0 July 2028 Variable rate – 5.780% 35.0 August 2028 Variable rate – 5.790% $ 2,189.3 The variable rate borrowings are pre-payable on each interest reset date without penalty. The fixed rate borrowings of $60.6 million are pre-payable subject to payment of a yield maintenance fee based on prevailing market interest rates. At December 31, 2023, the aggregate yield maintenance fee to prepay all fixed rate borrowings was not material. Interest expense of $104.7 million, $33.5 million and $9.8 million in 2023, 2022 and 2021, respectively, was recognized related to total borrowings from the FHLB. Accounting for Derivatives Our fixed indexed annuity products provide a guaranteed minimum rate of return and a higher potential return that is based on a percentage (the "participation rate") of the amount of increase in the value of a particular index, such as the Standard & Poor's 500 Index, over a specified period. We are generally able to change the participation rate at the beginning of each index period (typically on each policy anniversary date), subject to contractual minimums. The Company accounts for the options attributed to the policyholder for the estimated life of the contract as embedded derivatives. We are required to record the embedded derivatives related to our fixed indexed annuity products at estimated fair value. The value of the embedded derivative is based on the estimated cost to fulfill our commitment to fixed indexed annuity policyholders to purchase a series of annual forward options over the duration of the policy that back the potential return based on a percentage of the amount of increase in the value of the appropriate index. In valuing these options, we are required to make assumptions regarding: (i) future index values to determine both the future notional amounts at each anniversary date and the future prices of the forward starting options; (ii) future annual participation rates; and (iii) non-economic factors rela |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS At December 31, 2023, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions): Amortized Gross Gross Allowance for credit losses Estimated Investment grade (a): Corporate securities $ 12,590.8 $ 73.0 $ (1,347.8) $ (26.6) $ 11,289.4 United States Treasury securities and obligations of United States government corporations and agencies 207.6 .1 (13.3) — 194.4 States and political subdivisions 2,887.2 31.3 (360.2) (.6) 2,557.7 Foreign governments 92.7 1.2 (10.4) (.4) 83.1 Asset-backed securities 1,364.5 3.9 (92.4) (.1) 1,275.9 Agency residential mortgage-backed securities 639.0 9.5 (.5) — 648.0 Non-agency residential mortgage-backed securities 1,170.8 7.0 (136.3) — 1,041.5 Collateralized loan obligations 1,042.5 3.3 (13.0) — 1,032.8 Commercial mortgage-backed securities 2,386.9 .7 (240.9) — 2,146.7 Total investment grade fixed maturities, available for sale 22,382.0 130.0 (2,214.8) (27.7) 20,269.5 Below-investment grade (a) (b): Corporate securities 596.1 1.7 (34.6) (15.1) 548.1 States and political subdivisions 9.6 — (.5) (.1) 9.0 Asset-backed securities 111.7 .2 (15.4) — 96.5 Non-agency residential mortgage-backed securities 499.3 28.8 (16.4) — 511.7 Commercial mortgage-backed securities 100.5 — (29.1) — 71.4 Total below-investment grade fixed maturities, available for sale 1,317.2 30.7 (96.0) (15.2) 1,236.7 Total fixed maturities, available for sale $ 23,699.2 $ 160.7 $ (2,310.8) $ (42.9) $ 21,506.2 _______________ (a) Investment ratings are assigned the second lowest rating by Nationally Recognized Statistical Rating Organizations ("NRSROs") (Moody's Investor Services, Inc. ("Moody's"), S&P Global Ratings ("S&P") or Fitch Ratings ("Fitch")), or if not rated by such firms, the rating assigned by the National Association of Insurance Commissioners (the "NAIC"). NAIC designations of "1" or "2" include fixed maturities generally rated investment grade (rated "Baa3" or higher by Moody's or rated "BBB-" or higher by S&P and Fitch). NAIC designations of "3" through "6" are referred to as below-investment grade (which generally are rated "Ba1" or lower by Moody's or rated "BB+" or lower by S&P and Fitch). References to investment grade or below-investment grade throughout our consolidated financial statements are determined as described above. (b) Certain structured securities rated below-investment grade by NRSROs may be assigned a NAIC 1 or NAIC 2 designation based on the cost basis of the security relative to estimated recoverable amounts as determined by the NAIC. Refer to the table below for a summary of our fixed maturity securities, available for sale, by NAIC designations. The NAIC evaluates the fixed maturity investments of insurers for regulatory and capital assessment purposes and assigns securities to one of six credit quality categories called NAIC designations, which are used by insurers when preparing their annual statements based on U.S. statutory accounting principles. The NAIC designations are generally similar to the credit quality designations of the NRSROs for marketable fixed maturity securities, except for certain structured securities. However, certain structured securities rated below investment grade by the NRSROs can be assigned NAIC 1 or NAIC 2 designations depending on the cost basis of the holding relative to estimated recoverable amounts as determined by the NAIC. The following summarizes the NAIC designations and NRSRO equivalent ratings: NAIC Designation NRSRO Equivalent Rating 1 AAA/AA/A 2 BBB 3 BB 4 B 5 CCC and lower 6 In or near default A summary of our fixed maturity securities, available for sale, by NAIC designations (or for fixed maturity securities held by non-regulated entities, based on NRSRO ratings) as of December 31, 2023 is as follows (dollars in millions): NAIC designation Amortized cost Estimated fair value Percentage of total estimated fair value 1 $ 15,159.4 $ 13,775.6 64.0 % 2 7,801.9 7,074.0 32.9 Total NAIC 1 and 2 (investment grade) 22,961.3 20,849.6 96.9 3 539.7 483.2 2.3 4 154.0 144.8 .7 5 34.2 26.1 .1 6 10.0 2.5 — Total NAIC 3,4,5 and 6 (below-investment grade) 737.9 656.6 3.1 $ 23,699.2 $ 21,506.2 100.0 % At December 31, 2022, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions): Amortized Gross Gross Allowance for credit losses Estimated Investment grade: Corporate securities $ 13,043.6 $ 28.9 $ (1,858.4) $ (37.0) $ 11,177.1 United States Treasury securities and obligations of United States government corporations and agencies 171.7 — (13.0) — 158.7 States and political subdivisions 2,836.3 19.3 (476.0) (.8) 2,378.8 Foreign governments 86.3 .1 (11.3) (.4) 74.7 Asset-backed securities 1,312.5 1.0 (130.1) (.3) 1,183.1 Agency residential mortgage-backed securities 174.3 1.4 (.7) — 175.0 Non-agency residential mortgage-backed securities 1,122.6 6.0 (174.3) — 954.3 Collateralized loan obligations 825.2 .3 (39.6) — 785.9 Commercial mortgage-backed securities 2,401.3 .1 (254.1) — 2,147.3 Total investment grade fixed maturities, available for sale 21,973.8 57.1 (2,957.5) (38.5) 19,034.9 Below-investment grade: Corporate securities 605.5 1.0 (53.5) (17.4) 535.6 States and political subdivisions 10.6 — (.8) (.1) 9.7 Asset-backed securities 123.2 — (19.3) — 103.9 Non-agency residential mortgage-backed securities 577.8 34.0 (17.6) — 594.2 Commercial mortgage-backed securities 93.3 — (18.2) — 75.1 Total below-investment grade fixed maturities, available for sale 1,410.4 35.0 (109.4) (17.5) 1,318.5 Total fixed maturities, available for sale $ 23,384.2 $ 92.1 $ (3,066.9) $ (56.0) $ 20,353.4 Below-Investment Grade Securities At December 31, 2023, the amortized cost of the Company's below-investment grade fixed maturity securities, available for sale, was $1,317.2 million, or 5.6 percent of the Company's fixed maturity portfolio. The estimated fair value of the below-investment grade portfolio was $1,236.7 million, or 94 percent of the amortized cost. Based on the credit quality ratings assigned by the NAIC: (i) the amortized cost of our below-investment grade fixed maturities was $737.9 million, or 3.1 percent of our fixed maturity portfolio; and (ii) the estimated fair value of such below-investment grade fixed maturities was $656.6 million or 89 percent, of the amortized cost. Below-investment grade corporate debt securities typically have different characteristics than investment grade corporate debt securities. Based on historical performance, probability of default by the borrower is significantly greater for below-investment grade corporate debt securities and in many cases severity of loss is relatively greater as such securities are generally unsecured and often subordinated to other indebtedness of the issuer. Also, issuers of below-investment grade corporate debt securities frequently have higher levels of debt relative to investment-grade issuers, hence, all other things being equal, are generally more sensitive to adverse economic conditions. The Company attempts to reduce the overall risk related to its investment in below-investment grade securities, as in all investments, through careful credit analysis, strict investment policy guidelines, and diversification by issuer and/or guarantor and by industry. Contractual Maturity The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities (such as asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities, collectively referred to as "structured securities") frequently include provisions for periodic principal payments and permit periodic unscheduled payments. Amortized Estimated (Dollars in millions) Due in one year or less $ 202.1 $ 193.3 Due after one year through five years 2,288.2 2,191.7 Due after five years through ten years 1,630.4 1,546.4 Due after ten years 12,263.3 10,750.3 Subtotal 16,384.0 14,681.7 Structured securities 7,315.2 6,824.5 Total fixed maturities, available for sale $ 23,699.2 $ 21,506.2 Net Investment Income Net investment income consisted of the following (dollars in millions): 2023 2022 2021 General account assets: Fixed maturities $ 1,142.9 $ 1,084.1 $ 962.6 Equity securities 1.7 5.9 4.3 Mortgage loans 97.4 63.0 65.0 Policy loans 8.6 8.4 8.2 Other invested assets 8.2 38.0 124.8 Cash and cash equivalents 20.9 5.9 .3 Policyholder and other special-purpose portfolios: Trading securities 6.5 7.7 7.2 Options related to fixed indexed products: Option income (loss) (48.3) (6.3) 212.0 Change in value of options 177.3 (200.3) 8.9 Other special-purpose portfolios 114.0 35.8 52.4 Gross investment income 1,529.2 1,042.2 1,445.7 Less investment expenses 29.5 26.3 25.0 Net investment income $ 1,499.7 $ 1,015.9 $ 1,420.7 At December 31, 2023, the amortized cost and carrying value of fixed maturities that were non-income producing during 2023 totaled $10.0 million and $2.5 million, respectively. Total Investment Gains (Losses) The following table sets forth the total investment gains (losses) for the periods indicated (dollars in millions): 2023 2022 2021 Realized investment gains (losses): Gross realized gains on sales of fixed maturities, available for sale $ 13.4 $ 99.8 $ 51.6 Gross realized losses on sales of fixed maturities, available for sale (58.9) (104.0) (20.4) Equity securities, net (.6) (8.3) (2.9) Other, net (23.2) (5.4) (7.0) Total realized investment gains (losses) (69.3) (17.9) 21.3 Change in allowance for credit losses (a) 8.1 (52.6) 12.2 Change in fair value of equity securities (b) .4 (2.9) (7.3) Other changes in fair value (c) (8.2) (62.0) (7.1) Other investment gains (losses) .3 (117.5) (2.2) Total investment gains (losses) $ (69.0) $ (135.4) $ 19.1 _________________ (a) Changes in the allowance for credit losses includes $2.4 million, $(1.8) million and $11.4 million for the years ended December 31, 2023, 2022 and 2021, respectively, related to investments held by VIEs. (b) Changes in the estimated fair value of equity securities (that are still held as of the end of the respective years) were $0.1 million, $(7.3) million and $(7.8) million for the years ended December 31, 2023, 2022 and 2021, respectively. (c) Changes in the estimated fair value of trading securities that we have elected the fair value option (that are still held as of the end of the respective years) were $(2.0) million, $(43.3) million and $(3.1) million for the years ended December 31, 2023, 2022 and 2021, respectively. During 2023, we recognized net investment losses of $69.0 million, which were comprised of: (i) $68.7 million of net losses from the sales of investments; (ii) $0.2 million of losses related to equity securities, including the change in fair value; (iii) the net decrease in fair value of certain other invested assets and fixed maturity investments with embedded derivatives of $8.5 million; (iv) the increase in fair value of embedded derivatives related to a modified coinsurance agreement of $0.3 million; and (v) a decrease in the allowance for credit losses of $8.1 million. During 2022, we recognized net investment losses of $135.4 million, which were comprised of: (i) $9.6 million of net losses from the sales of investments; (ii) $11.2 million of losses related to equity securities, including the change in fair value; (iii) the decrease in fair value of certain fixed maturity investments with embedded derivatives of $45.9 million; (iv) the decrease in fair value of embedded derivatives related to a modified coinsurance agreement of $16.1 million; and (v) an increase in the allowance for credit losses of $52.6 million. During 2021, we recognized net investment gains of $19.1 million, which were comprised of: (i) $24.2 million of net gains from the sales of investments; (ii) $10.2 million of losses related to equity securities, including the change in fair value; (iii) the decrease in fair value of certain fixed maturity investments with embedded derivatives of $4.0 million; (iv) the decrease in fair value of embedded derivatives related to a modified coinsurance agreement of $3.1 million; and (v) a decrease in the allowance for credit losses of $12.2 million. During 2023, the $58.9 million of realized losses on sales of $712.2 million of fixed maturity securities, available for sale, included: (i) $48.8 million related to various corporate securities; (ii) $6.7 million related to commercial mortgage-backed securities; and (iii) $3.4 million related to various other investments. Securities are generally sold at a loss following unforeseen issuer-specific events or conditions or shifts in perceived relative values. These reasons include but are not limited to: (i) changes in the investment environment; (ii) expectation that the market value could deteriorate; (iii) our desire to reduce our exposure to an asset class, an issuer or an industry; (iv) prospective or actual changes in credit quality; or (v) changes in expected portfolio cash flows. During 2022, the $104.0 million of realized losses on sales of $1,651.5 million of fixed maturity securities, available for sale included: (i) $70.9 million related to various corporate securities; (ii) $16.5 million related to non-agency residential mortgage-backed securities: (iii) $7.5 million related to states and political subdivisions; and (iv) $9.1 million related to various other investments. During 2021, the $20.4 million of realized losses on sales of $493.5 million of fixed maturity securities, available for sale, included: (i) $19.5 million related to various corporate securities; and (ii) $0.9 million related to various other investments. Our fixed maturity investments are generally purchased in the context of various long-term strategies, including funding insurance liabilities, so we do not generally seek to generate short-term realized gains through the purchase and sale of such securities. In certain circumstances, including those in which securities are selling at prices which exceed our view of their underlying economic value, or when it is possible to reinvest the proceeds to better meet our long-term asset-liability objectives, we may sell certain securities. The following summarizes the investments sold at a loss during 2023 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions): At date of sale Number Amortized cost Fair value Less than 6 months prior to sale 5 $ 48.8 $ 26.3 Greater than or equal to 6 months and less than 12 months prior to sale 1 10.6 .1 Greater than 12 months prior to sale 2 3.9 2.4 $ 63.3 $ 28.8 Future events may occur, or additional information may become available, which may necessitate future realized losses in our portfolio. Significant losses could have a material adverse effect on our consolidated financial statements in future periods. Investments with Unrealized Losses The following table sets forth the amortized cost and estimated fair value of those fixed maturities, available for sale, with unrealized losses at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities frequently include provisions for periodic principal payments and permit periodic unscheduled payments. Amortized Estimated (Dollars in millions) Due in one year or less $ 145.8 $ 136.8 Due after one year through five years 1,902.1 1,799.3 Due after five years through ten years 1,039.6 935.2 Due after ten years 10,540.0 8,946.6 Subtotal 13,627.5 11,817.9 Structured securities 5,663.4 5,119.3 Total $ 19,290.9 $ 16,937.2 The following summarizes the investments in our portfolio rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2023 (dollars in millions): Number Cost Unrealized Estimated Less than 6 months 1 $ 4.2 $ (1.1) $ 3.1 Greater than or equal to 6 months and less than 12 months 6 21.1 (6.2) 14.9 Greater than 12 months 5 64.5 (24.9) 39.6 Total $ 89.8 $ (32.2) $ 57.6 The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2023 (dollars in millions): Less than 12 months 12 months or greater Total Description of securities Fair Unrealized Fair Unrealized Fair Unrealized Corporate securities $ 332.0 $ (5.3) $ 5,199.0 $ (640.6) $ 5,531.0 $ (645.9) United States Treasury securities and obligations of United States government corporations and agencies 126.7 (10.2) 34.5 (3.1) 161.2 (13.3) States and political subdivisions 236.9 (3.8) 990.0 (181.2) 1,226.9 (185.0) Foreign governments 6.2 — 21.1 (2.3) 27.3 (2.3) Asset-backed securities 46.9 (.8) 1,066.8 (106.0) 1,113.7 (106.8) Agency residential mortgage-backed securities 73.4 (.4) 7.1 (.1) 80.5 (.5) Non-agency residential mortgage-backed securities 69.0 (1.3) 1,062.9 (151.4) 1,131.9 (152.7) Collateralized loan obligations 75.0 (.3) 590.9 (12.7) 665.9 (13.0) Commercial mortgage-backed securities 203.8 (2.4) 1,914.1 (267.6) 2,117.9 (270.0) Total fixed maturities, available for sale $ 1,169.9 $ (24.5) $ 10,886.4 $ (1,365.0) $ 12,056.3 $ (1,389.5) The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2022 (dollars in millions): Less than 12 months 12 months or greater Total Description of securities Fair Unrealized Fair Unrealized Fair Unrealized Corporate securities $ 2,830.8 $ (329.4) $ 370.4 $ (129.3) $ 3,201.2 $ (458.7) United States Treasury securities and obligations of United States government corporations and agencies 134.4 (9.6) 21.9 (3.4) 156.3 (13.0) States and political subdivisions 667.0 (124.8) 132.1 (58.5) 799.1 (183.3) Foreign governments 35.0 (3.5) 2.1 (.3) 37.1 (3.8) Asset-backed securities 914.0 (90.1) 258.1 (53.4) 1,172.1 (143.5) Agency residential mortgage-backed securities 59.7 (.7) — — 59.7 (.7) Non-agency residential mortgage-backed securities 861.6 (89.7) 335.4 (102.2) 1,197.0 (191.9) Collateralized loan obligations 553.0 (27.4) 184.2 (12.2) 737.2 (39.6) Commercial mortgage-backed securities 1,581.4 (160.0) 593.3 (112.3) 2,174.7 (272.3) Total fixed maturities, available for sale $ 7,636.9 $ (835.2) $ 1,897.5 $ (471.6) $ 9,534.4 $ (1,306.8) Based on management's current assessment of investments with unrealized losses at December 31, 2023, the Company believes the issuers of the securities will continue to meet their obligations. While we do not have the intent to sell securities with unrealized losses and it is not more likely than not that we will be required to sell securities with unrealized losses prior to their anticipated recovery, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, if a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we had the intent to sell the security before its anticipated recovery. The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three years ended December 31, 2023 (dollars in millions): Corporate securities States and political subdivisions Foreign governments Asset-backed securities Total Allowance at December 31, 2020 $ 1.9 $ .3 $ — $ — $ 2.2 Additions for securities for which credit losses were not previously recorded 6.1 .1 .1 — 6.3 Additions (reductions) for securities where an allowance was previously recorded .2 (.4) .2 — — Reduction for securities sold during the period (.8) — (.1) — (.9) Allowance at December 31, 2021 7.4 — .2 — 7.6 Additions for securities for which credit losses were not previously recorded 48.9 .7 .5 .3 50.4 Additions (reductions) for securities where an allowance was previously recorded 10.3 .3 (.3) — 10.3 Reduction for securities sold during the period (12.2) (.1) — — (12.3) Allowance at December 31, 2022 54.4 .9 .4 .3 56.0 Additions for securities for which credit losses were not previously recorded 7.3 .3 .1 — 7.7 Additions (reductions) for securities where an allowance was previously recorded (7.3) (.4) — (.2) (7.9) Reduction for securities sold during the period (12.7) (.1) (.1) — (12.9) Allowance at December 31, 2023 $ 41.7 $ .7 $ .4 $ .1 $ 42.9 Structured Securities At December 31, 2023, fixed maturity investments included structured securities with an estimated fair value of $6.8 billion (or 31.7 percent of all fixed maturity securities). The yield characteristics of structured securities generally differ in some respects from those of traditional corporate fixed-income securities or government securities. For example, interest and principal payments on structured securities may occur more frequently, often monthly. In many instances, we are subject to variability in the amount and timing of principal and interest payments. For example, in many cases, partial prepayments may occur at the option of the issuer and prepayment rates are influenced by a number of factors that cannot be predicted with certainty, including: the relative sensitivity of prepayments on the underlying assets backing the security to changes in interest rates and asset values; the availability of alternative financing; a variety of economic, geographic and other factors; the timing, pace and proceeds of liquidations of defaulted collateral; and various security-specific structural considerations (for example, the repayment priority of a given security in a securitization structure). In addition, the total amount of payments for non-agency structured securities may be affected by changes to cumulative default rates or loss severities of the related collateral. Historically, the rate of prepayments on structured securities has tended to increase when prevailing interest rates have declined significantly in absolute terms and also relative to the interest rates on the underlying collateral. The yields recognized on structured securities purchased at a discount to par will generally increase (relative to the stated rate) when the underlying collateral prepays faster than expected. The yields recognized on structured securities purchased at a premium will decrease (relative to the stated rate) when the underlying collateral prepays faster than expected. When interest rates decline, the proceeds from prepayments may be reinvested at lower rates than we were earning on the prepaid securities. When interest rates increase, prepayments may decrease below expected levels. When this occurs, the average maturity and duration of structured securities increases, decreasing the yield on structured securities purchased at discounts and increasing the yield on those purchased at a premium because of a decrease in the annual amortization of premium. For structured securities included in fixed maturities, available for sale, that were purchased at a discount or premium, we recognize investment income using an effective yield based on anticipated future prepayments and the estimated final maturity of the securities. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For credit sensitive mortgage-backed and asset-backed securities, and for securities that can be prepaid or settled in a way that we would not recover substantially all of our investment, the effective yield is recalculated on a prospective basis. Under this method, the amortized cost basis in the security is not immediately adjusted and a new yield is applied prospectively. For all other structured and asset-backed securities, the effective yield is recalculated when changes in assumptions are made, and reflected in our income on a retrospective basis. Under this method, the amortized cost basis of the investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the acquisition of the securities. Such adjustments were not significant in 2023. For purchased credit impaired securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is accreted into net investment income over the securities’ remaining lives on a level-yield basis. Subsequently, effective yields recognized on purchased credit impaired securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to reasons other than interest rate changes. Significant decreases in expected cash flows arising from credit events would result in impairment if such security's fair value is below amortized cost. The amortized cost and estimated fair value of structured securities at December 31, 2023, summarized by type of security, were as follows (dollars in millions): Estimated fair value Type Amortized Amount Percent Asset-backed securities $ 1,476.2 $ 1,372.4 6.4 % Agency residential mortgage-backed securities 639.0 648.0 3.0 Non-agency residential mortgage-backed securities 1,670.1 1,553.2 7.2 Collateralized loan obligations 1,042.5 1,032.8 4.8 Commercial mortgage-backed securities 2,487.4 2,218.1 10.3 Total structured securities $ 7,315.2 $ 6,824.5 31.7 % Residential mortgage-backed securities ("RMBS") include transactions collateralized by agency-guaranteed and non-agency mortgage obligations. Non-agency RMBS investments are primarily categorized by underlying borrower credit quality: Prime, Alt-A, Non-Qualified Mortgage ("Non-QM"), and Subprime. Prime borrowers typically default with the lowest frequency, Alt-A and Non-QM default at higher rates, and Subprime borrowers default with the highest frequency. In addition to borrower credit categories, RMBS investments include Re-Performing Loan ("RPL") and Credit Risk Transfer ("CRT") transactions. RPL transactions include borrowers with prior difficulty meeting the original mortgage terms and were subsequently modified, resulting in a sustainable payback arrangement. CRT securities are collateralized by Government-Sponsored Enterprise conforming mortgages and Prime borrowers, but without an agency guarantee against default losses. Commercial mortgage-backed securities ("CMBS") are secured by commercial real estate mortgages, generally income producing properties that are managed for profit. Property types include, but are not limited to, hospitals, hotels, multi-family dwellings including apartments, nursing homes, office buildings, restaurants, retail centers and warehouses. While most CMBS have call protection features whereby underlying borrowers may not prepay their mortgages for stated periods of time without incurring prepayment penalties, recoveries on defaulted collateral may result in involuntary prepayments. Mortgage Loans Mortgage loans are carried at amortized unpaid balance, net of allowance for estimated credit losses. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Payment terms specified for mortgage loans may include a prepayment penalty for unscheduled payoff of the investment. Prepayment penalties are recognized as investment income when received. The allowance for estimated credit losses is measured using a loss-rate method on an individual asset basis. Inputs used include asset-specific characteristics, current economic conditions, historical loss information and reasonable and supportable forecasts about future economic conditions. The mortgage loan balance was comprised of commercial and residential mortgage loans. At December 31, 2023, we held commercial mortgage loan investments with an amortized cost and fair value of $1,457.5 million and $1,305.1 million, respectively. Approximately 16 percent, 8 percent, 6 percent and 6 percent of the commercial mortgage loan balance were on properties located in California, Maryland, Wisconsin and Indiana, respectively. No other state comprised greater than five percent of the commercial mortgage loan balance. At December 31, 2023, there were no commercial mortgage loans in process of foreclosure. At December 31, 2023, we held residential mortgage loan investments with an amortized cost of $622.0 million and a fair value of $621.8 million. At December 31, 2023, there were ten residential mortgage loans that were noncurrent with an amortized cost of $4.9 million (of which, six loans with an amortized cost of $2.4 million were in foreclosure). The following table provides the amortized cost by year of origination and estimated fair value of our outstanding commercial mortgage loans and the underlying collateral as of December 31, 2023 (dollars in millions): Estimated fair Loan-to-value ratio (a) 2023 2022 2021 2020 2019 Prior Total amortized cost Mortgage loans Collateral Less than 60% $ 239.1 $ 146.6 $ 114.8 $ 33.6 $ 73.4 $ 459.5 $ 1,067.0 $ 963.8 $ 3,938.2 60% to less than 70% 47.1 87.2 11.0 5.5 — 36.4 187.2 168.9 287.0 70% to less than 80% 19.4 77.8 24.8 — — 39.9 161.9 140.5 214.1 80% to less than 90% — — — — — 17.3 17.3 14.3 20.8 90% or greater — — — — — 24.1 24.1 17.6 25.1 Total $ 305.6 $ 311.6 $ 150.6 $ 39.1 $ 73.4 $ 577.2 $ 1,457.5 $ 1,305.1 $ 4,485.2 ________________ (a) Loan-to-value ratios are calculated as the ratio of: (i) the amortized cost of the commercial mortgage loans; to (ii) the estimated fair value of the underlying collateral. The following table summarizes changes in the allowance for credit losses related to mortgage loans for the three years ended December 31, 2023 (dollars in millions): Mortgage loans Allowance for credit losses at December 31, 2020 $ 11.8 Current period provision for expected credit losses (6.2) Allowance for credit losses at December 31, 2021 5.6 Current period provision for expected credit losses 2.4 Allowance for credit losses at December 31, 2022 8.0 Current period provision for expected credit losses 7.4 Allowance for credit losses at December 31, 2023 $ 15.4 Other Investment Disclosures Life insurance companies are required to maintain certain investments on deposit with state regulatory authorities. Such assets had an aggregate fair value of $38.0 million and $37.2 million at December 31, 2023 and 2022, respectively. The Company had no fixed maturity investments that were in excess of 10 percent of shareholders' equity at December 31, 2023 and 2022. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, therefore, represents an exit price, not an entry price. We carry certain assets and liabilities at fair value on a recurring basis, including fixed maturities, equity securities, trading securities, investments held by VIEs, derivatives, separate account assets and embedded derivatives. We carry our COLI, which is invested in a series of mutual funds, at its cash surrender value which approximates fair value. In addition, we disclose fair value for certain financial instruments that are not carried at fair value, including mortgage loans, policy loans, cash and cash equivalents, insurance liabilities for interest-sensitive products and funding agreements, investment borrowings, notes payable and borrowings related to VIEs. The degree of judgment utilized in measuring the fair value of financial instruments is largely dependent on the level to which pricing is based on observable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. Financial instruments with readily available active quoted prices would be considered to have fair values based on the highest level of observable inputs, and little judgment would be utilized in measuring fair value. Financial instruments that rarely trade would often have fair value based on a lower level of observable inputs, and more judgment would be utilized in measuring fair value. Valuation Hierarchy There is a three-level hierarchy for valuing assets or liabilities at fair value based on whether inputs are observable or unobservable. • Level 1 – includes assets and liabilities valued using inputs that are unadjusted quoted prices in active markets for identical assets or liabilities. Our Level 1 assets primarily include cash and cash equivalents and exchange-traded securities. • Level 2 – includes assets and liabilities valued using inputs that are quoted prices for similar assets in an active market, quoted prices for identical or similar assets in a market that is not active, observable inputs, or observable inputs that can be corroborated by market data. Level 2 assets and liabilities include those financial instruments that are valued by independent pricing services using models or other valuation methodologies. These models consider various inputs such as credit rating, maturity, corporate credit spreads, reported trades and other inputs that are observable or derived from observable information in the marketplace or are supported by transactions executed in the marketplace. Financial assets in this category primarily include: certain publicly registered and privately placed corporate fixed maturity securities; certain government or agency securities; certain mortgage and asset-backed securities; certain equity securities; most investments held by our consolidated VIEs; and derivatives such as call options. Financial liabilities in this category include investment borrowings, notes payable and borrowings related to VIEs. • Level 3 – includes assets and liabilities valued using unobservable inputs that are used in model-based valuations that contain management assumptions. Level 3 assets and liabilities include those financial instruments whose fair value is estimated based on broker/dealer quotes, pricing services or internally developed models or methodologies utilizing significant inputs not based on, or corroborated by, readily available market information. Financial assets in this category include certain corporate securities, certain structured securities, mortgage loans, and other less liquid securities. Financial liabilities in this category include our insurance liabilities for interest-sensitive products, which includes embedded derivatives (including embedded derivatives related to our fixed indexed annuity products and to a modified coinsurance arrangement), and funding agreements since their values include significant unobservable inputs including actuarial assumptions. At each reporting date, we classify assets and liabilities into the three input levels based on the lowest level of input that is significant to the measurement of fair value for each asset and liability reported at fair value. This classification is 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. Our assessment of the significance of a particular input to the fair value measurement and the ultimate classification of each asset and liability requires judgment and is subject to change from period to period based on the observability of the valuation inputs. The vast majority of our assets carried at fair value use Level 2 inputs for the determination of fair value. These fair values are obtained primarily from independent pricing services, which use Level 2 inputs for the determination of fair value. Our Level 2 assets are valued as follows: • Fixed maturities available for sale, equity securities and trading securities Corporate securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads. U.S. Treasuries and obligations of U.S. Government corporations and agencies are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets and maturity. States and political subdivisions are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances and credit spreads. Foreign governments are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances, benchmark yields, credit spreads and issuer rating. Asset-backed securities, agency and non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of quoted prices in inactive markets, spreads on actively traded securities, expected prepayments, expected default rates, expected recovery rates and issue specific information including, but not limited to, collateral type, seniority and vintage. Equity securities are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads. • Investments held by VIEs Corporate securities are generally priced using market and income approaches using pricing vendors. Inputs generally consist of issuer rating, benchmark yields, maturity, and credit spreads. • Other invested assets - derivatives The fair value measurements for derivative instruments, including embedded derivatives requiring bifurcation, are determined based on the consideration of several inputs including closing exchange or over-the-counter market price quotes, time value and volatility factors underlying options, market interest rates and non-performance risk. Third-party pricing services normally derive security prices through recently reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recently reported trades, the third-party pricing services may use matrix or model processes to develop a security price where future cash flow expectations are discounted at an estimated risk-adjusted market rate. The number of prices obtained for a given security is dependent on the Company's analysis of such prices as further described below. As the Company is responsible for the determination of fair value, we have control processes designed to ensure that the fair values received from third-party pricing sources are reasonable and the valuation techniques and assumptions used appear reasonable and consistent with prevailing market conditions. Additionally, when inputs are provided by third-party pricing sources, we have controls in place to review those inputs for reasonableness. As part of these controls, we perform monthly quantitative and qualitative analysis on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. The Company's analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) where available, a comparison of multiple pricing services' valuations for the same security; (iii) a review of month to month price fluctuations; (iv) a review to ensure valuations are not unreasonably dated; and (v) back testing to compare actual purchase and sale transactions with valuations received from third parties. As a result of such procedures, the Company may conclude a particular price received from a third party is not reflective of current market conditions. In those instances, we may request additional pricing quotes or apply internally developed valuations. However, the number of such instances is insignificant and the aggregate change in value of such investments is not materially different from the original prices received. The categorization of the fair value measurements of our investments priced by independent pricing services was based upon the Company's judgment of the inputs or methodologies used by the independent pricing services to value different asset classes. Such inputs typically include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other relevant data. The Company categorizes such fair value measurements based upon asset classes and the underlying observable or unobservable inputs used to value such investments. For securities that are not priced by pricing services and may not be reliably priced using pricing models, we obtain broker quotes. These broker quotes are non-binding and represent an exit price, but assumptions used to establish the fair value may not be observable and therefore represent Level 3 inputs. Approximately 92 percent of our Level 3 fixed maturity securities and trading securities were valued using unadjusted broker quotes or broker-provided valuation inputs. The remaining Level 3 fixed maturity investments do not have readily determinable market prices and/or observable inputs. For these securities, we use internally developed valuations. Key assumptions used to determine fair value for these securities may include risk premiums, projected performance of underlying collateral and other factors involving significant assumptions which may not be reflective of an active market. For certain investments, we use a matrix or model process to develop a security price where future cash flow expectations are discounted at an estimated market rate. The pricing matrix incorporates term interest rates as well as a spread level based on the issuer's credit rating, other factors relating to the issuer, and the security's maturity. In some instances issuer-specific spread adjustments, which can be positive or negative, are made based upon internal analysis of security specifics such as liquidity, deal size, and time to maturity. The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 31, 2023 is as follows (dollars in millions): Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total Assets: Fixed maturities, available for sale: Corporate securities $ — $ 11,678.2 $ 159.3 $ 11,837.5 United States Treasury securities and obligations of United States government corporations and agencies — 194.4 — 194.4 States and political subdivisions — 2,566.7 — 2,566.7 Foreign governments — 83.1 — 83.1 Asset-backed securities — 1,346.9 25.5 1,372.4 Agency residential mortgage-backed securities — 648.0 — 648.0 Non-agency residential mortgage-backed securities — 1,553.2 — 1,553.2 Collateralized loan obligations — 1,032.8 — 1,032.8 Commercial mortgage-backed securities — 2,205.0 13.1 2,218.1 Total fixed maturities, available for sale — 21,308.3 197.9 21,506.2 Equity securities - corporate securities 24.2 — 72.7 96.9 Trading securities: Asset-backed securities — 32.8 — 32.8 Agency residential mortgage-backed securities — 3.5 — 3.5 Non-agency residential mortgage-backed securities — 58.5 — 58.5 Collateralized loan obligations — 9.0 — 9.0 Commercial mortgage-backed securities — 118.9 — 118.9 Total trading securities — 222.7 — 222.7 Investments held by variable interest entities - corporate securities — 768.6 — 768.6 Other invested assets: Derivatives — 239.2 — 239.2 Residual tranches — 7.5 31.5 39.0 Total other invested assets — 246.7 31.5 278.2 Market risk benefit asset — — 75.4 75.4 Assets held in separate accounts — 3.1 — 3.1 Total assets carried at fair value by category $ 24.2 $ 22,549.4 $ 377.5 $ 22,951.1 Liabilities: Market risk benefit liability $ — $ — $ 7.4 $ 7.4 Embedded derivatives associated with fixed indexed annuity products — — 1,376.7 1,376.7 Total liabilities carried at fair value by category $ — $ — $ 1,384.1 $ 1,384.1 The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 31, 2022 is as follows (dollars in millions): Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total Assets: Fixed maturities, available for sale: Corporate securities $ — $ 11,584.9 $ 127.8 $ 11,712.7 United States Treasury securities and obligations of United States government corporations and agencies — 158.7 — 158.7 States and political subdivisions — 2,388.5 — 2,388.5 Foreign governments — 74.7 — 74.7 Asset-backed securities — 1,230.0 57.0 1,287.0 Agency residential mortgage-backed securities — 175.0 — 175.0 Non-agency residential mortgage-backed securities — 1,492.3 56.2 1,548.5 Collateralized loan obligations — 782.5 3.4 785.9 Commercial mortgage-backed securities — 2,207.9 14.5 2,222.4 Total fixed maturities, available for sale — 20,094.5 258.9 20,353.4 Equity securities - corporate securities 59.6 — 75.7 135.3 Trading securities: Asset-backed securities — 15.1 — 15.1 Agency residential mortgage-backed securities — .3 — .3 Non-agency residential mortgage-backed securities — 60.2 .5 60.7 Commercial mortgage-backed securities — 131.8 — 131.8 Total trading securities — 207.4 .5 207.9 Investments held by variable interest entities - corporate securities — 1,077.6 — 1,077.6 Other invested assets: Derivatives — 56.7 — 56.7 Residual tranches — — 18.3 18.3 Total other invested assets — 56.7 18.3 75.0 Market risk benefit asset — — 65.3 65.3 Assets held in separate accounts — 2.7 — 2.7 Total assets carried at fair value by category $ 59.6 $ 21,438.9 $ 418.7 $ 21,917.2 Liabilities: Market risk benefit liability $ — $ — $ 11.3 $ 11.3 Embedded derivatives associated with fixed indexed annuity products — — 1,297.0 1,297.0 Total liabilities carried at fair value by category $ — $ — $ 1,308.3 $ 1,308.3 The fair value of our financial instruments not carried at fair value on a recurring basis are as follows (dollars in millions): December 31, 2023 Quoted prices in active markets for identical assets or liabilities Significant other observable inputs Significant unobservable inputs Total estimated fair value Total carrying amount Assets: Mortgage loans $ — $ — $ 1,926.9 $ 1,926.9 $ 2,064.1 Policy loans — — 128.5 128.5 128.5 Other invested assets: Company-owned life insurance (a) — 303.0 — 303.0 303.0 Cash and cash equivalents: Unrestricted 774.5 — — 774.5 774.5 Held by variable interest entities 114.5 — — 114.5 114.5 Liabilities: Policyholder account balances — — 15,667.8 15,667.8 15,667.8 Future policy benefits — — (274.9) (274.9) (274.9) Investment borrowings — 2,190.2 — 2,190.2 2,189.3 Borrowings related to variable interest entities — 814.8 — 814.8 820.8 Notes payable – direct corporate obligations — 1,097.3 — 1,097.3 1,140.5 _________ (a) Includes $202.9 million of COLI purchased as an investment vehicle to fund our agent deferred compensation plan as further described in the footnote to the consolidated financial statements entitled "Agent Deferred Compensation Plan". December 31, 2022 Quoted prices in active markets for identical assets or liabilities Significant other observable inputs Significant unobservable inputs Total estimated fair value Total carrying amount Assets: Mortgage loans $ — $ — $ 1,273.6 $ 1,273.6 $ 1,411.9 Policy loans — — 121.6 121.6 121.6 Other invested assets: Company-owned life insurance — 199.1 — 199.1 199.1 Cash and cash equivalents: Unrestricted 575.7 — — 575.7 575.7 Held by variable interest entities 69.2 — — 69.2 69.2 Liabilities: Policyholder account balances — — 15,234.2 15,234.2 15,234.2 Future policy benefits — — (491.4) (491.4) (491.4) Investment borrowings — 1,640.5 — 1,640.5 1,639.5 Borrowings related to variable interest entities — 1,066.3 — 1,066.3 1,104.6 Notes payable – direct corporate obligations — 1,077.0 — 1,077.0 1,138.8 The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the year ended December 31, 2023 (dollars in millions): December 31, 2023 Beginning balance as of December 31, 2022 Purchases, sales, issuances and settlements, net (b) Total realized and unrealized gains (losses) included in net income Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) Transfers into Level 3 (a) Transfers out of Level 3 (a) Ending balance as of December 31, 2023 Amount of total gains (losses) for the year ended December 31, 2023 included in our net income relating to assets still held as of the reporting date Amount of total gains (losses) for the year ended December 31, 2023 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date Assets: Fixed maturities, available for sale: Corporate securities $ 127.8 $ 26.3 $ (1.7) $ 8.3 $ 9.2 $ (10.6) $ 159.3 $ (1.7) $ 5.1 Asset-backed securities 57.0 (6.3) (.2) (1.7) — (23.3) 25.5 — (1.9) Non-agency residential mortgage-backed securities 56.2 — — — — (56.2) — — — Collateralized loan obligations 3.4 — — — — (3.4) — — — Commercial mortgage-backed securities 14.5 — — (1.4) — — 13.1 — (1.5) Total fixed maturities, available for sale 258.9 20.0 (1.9) 5.2 9.2 (93.5) 197.9 (1.7) 1.7 Equity securities - corporate securities 75.7 (2.1) (.9) — — — 72.7 (.5) — Trading securities - non-agency residential mortgage-backed securities .5 — — — — (.5) — — — Other invested assets - residual tranches 18.3 13.1 .1 — — — 31.5 .1 — _________ (a) Transfers into Level 3 are the result of unobservable inputs utilized within valuation methodologies for assets that were previously valued using observable inputs. Transfers out of Level 3 are due to the use of observable inputs in valuation methodologies as well as the utilization of pricing service information for certain assets that the Company is able to validate. (b) Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities. The following summarizes such activity for the year ended December 31, 2023 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, net Assets: Fixed maturities, available for sale: Corporate securities $ 27.7 $ (1.4) $ — $ — $ 26.3 Asset-backed securities — (6.3) — — (6.3) Total fixed maturities, available for sale 27.7 (7.7) — — 20.0 Equity securities - corporate securities — (2.1) — — (2.1) Other invested assets - residual tranches 13.5 (.4) — — 13.1 The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the year ended December 31, 2022 (dollars in millions): December 31, 2022 Beginning balance as of December 31, 2021 Purchases, sales, issuances and settlements, net (b) Total realized and unrealized gains (losses) included in net income Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) Transfers into Level 3 (a) Transfers out of Level 3 (a) Ending balance as of December 31, 2022 Amount of total gains (losses) for the year ended December 31, 2022 included in our net income relating to assets still held as of the reporting date Amount of total gains (losses) for the year ended December 31, 2022 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date Assets: Fixed maturities, available for sale: Corporate securities $ 89.7 $ 15.2 $ (10.4) $ (35.5) $ 76.2 $ (7.4) $ 127.8 $ (9.8) $ (37.8) Asset-backed securities 26.6 38.1 (.1) (10.3) 2.7 — 57.0 — (10.3) Non-agency residential mortgage-backed securities — 14.3 (.3) (24.7) 66.9 — 56.2 — (24.7) Collateralized loan obligations 5.0 — — (.2) 3.6 (5.0) 3.4 — (.4) Commercial mortgage-backed securities 19.0 — — (4.5) — — 14.5 — (4.6) Total fixed maturities, available for sale 140.3 67.6 (10.8) (75.2) 149.4 (12.4) 258.9 (9.8) (77.8) Equity securities - corporate securities 11.5 63.9 .3 — — — 75.7 .4 — Trading securities: Non-agency residential mortgage-backed securities 3.5 — (.3) — .8 (3.5) .5 (.3) — Commercial mortgage-backed securities 12.9 — — — — (12.9) — — — Total trading securities 16.4 — (.3) — .8 (16.4) .5 (.3) — Investments held by variable interest entities - corporate securities 2.2 (2.1) (.1) — — — — — — Other invested assets - residual tranches — 18.6 — (2.1) 1.8 — 18.3 — (2.1) ____________ (a) Transfers into Level 3 are the result of unobservable inputs utilized within valuation methodologies for assets that were previously valued using observable inputs. Transfers out of Level 3 are due to the use of observable inputs in valuation methodologies as well as the utilization of pricing service information for certain assets that the Company is able to validate. (b) Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities. The following summarizes such activity for the year ended December 31, 2022 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, net Assets: Fixed maturities, available for sale: Corporate securities $ 27.3 $ (12.1) $ — $ — $ 15.2 Asset-backed securities 41.0 (2.9) — — 38.1 Non-agency residential mortgage-backed securities 20.3 (6.0) — — 14.3 Total fixed maturities, available for sale 88.6 (21.0) — — 67.6 Equity securities - corporate securities 67.0 (3.1) — — 63.9 Investments held by variable interest entities - corporate securities — (2.1) — — (2.1) Other invested assets - residual tranches 18.6 — — — 18.6 Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses during the time the applicable financial instruments were classified as Level 3. Realized and unrealized gains (losses) on Level 3 assets are primarily reported in either net investment income for policyholder and other special-purpose portfolios or investment gains (losses) within the consolidated statement of operations; or accumulated other comprehensive income (loss) within shareholders' equity based on the appropriate accounting treatment for the instrument. The amount presented for gains (losses) included in our net income for assets still held as of the reporting date primarily represents: (i) the change in the allowance for credit losses for fixed maturities, available for sale; and (ii) changes in fair value of equity securities and trading securities that are held as of the reporting date. The amount presented for gains (losses) included in accumulated other comprehensive income (loss) for assets still held as of the reporting date primarily represents changes in the fair value of fixed maturities, available for sale, that are held as of the reporting date. At December 31, 2023, 79 percent of our Level 3 fixed maturities, available for sale, were investment grade and 80 percent of our Level 3 fixed maturities, available for sale, consisted of corporate securities. The following table summarizes changes in the value of our embedded derivatives associated with fixed indexed annuity products (classified in policyholder account balances and future policy benefits as presented in the note to the consolidated financial statements entitled "Derivatives") which are measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value (dollars in millions): 2023 2022 Balance at beginning of the period $ 1,297.0 $ 1,724.1 Premiums less benefits (57.4) 61.4 Change in fair value, net 137.1 (488.5) Balance at end of the period $ 1,376.7 $ 1,297.0 The change in fair value, net for each period in our embedded derivatives is included in the insurance policy benefits line item in the consolidated statement of operations. The following table provides additional information about the significant unobservable (Level 3) inputs developed internally by the Company to determine fair value for certain assets and liabilities carried at fair value at December 31, 2023 (dollars in millions): Fair value at December 31, 2023 Valuation techniques Unobservable inputs Range (weighted average) (a) Assets: Corporate securities (b) $ 2.9 Discounted cash flow analysis Discount margins (2.22%) Corporate securities (c) 2.5 Recovery method Percent of recovery expected (25.00%) Corporate securities (d) 1.5 Unadjusted purchase price Not applicable Not applicable Asset-backed securities (e) 8.6 Discounted cash flow analysis Discount margins (2.24%) Equity securities (f) 63.4 Market comparables EBITDA multiples 11.3X Equity securities (g) .1 Recovery method Percent of recovery expected 0.00% - 100.00% (100.00%) Equity securities (h) 9.2 Unadjusted purchase price Not applicable Not applicable Other assets categorized as Level 3 (i) 213.9 Unadjusted third-party price source Not applicable Not applicable Market risk benefit asset (j) 75.4 Discounted cash flow analysis Surrender rates 1.42% - 15.25% (4.28%) Utilization rates 5.92% - 47.62% (24.88%) Total 377.5 Liabilities: Market risk benefit liability (j) 7.4 Discounted cash flow analysis Surrender rates 1.42 - 15.25% (4.28%) Utilization rates 5.92% - 47.62% (24.88%) Embedded derivatives related to fixed indexed annuity products (k) 1,376.7 Discounted projected embedded derivatives Projected portfolio yields 4.32% - 4.92% (4.57%) Discount rates 3.85% - 5.76% (4.41%) Surrender rates 1.42% - 23.70% (6.92%) ________________________________ (a) The weighted average is based on the relative fair value of the related assets or liabilities. (b) Corporate securities - The significant unobservable input used in the fair value measurement of our corporate securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement. (c) Corporate securities - The significant unobservable input used in the fair value measurement of these corporate securities is percentage of recovery expected. Significant increases (decreases) in percentage of recovery expected in isolation would have resulted in a significantly higher (lower) fair value measurement. (d) Corporate securities - For these assets, there were no adjustments to the purchase price. (e) Asset-backed securities - The significant unobservable input used in the fair value measurement of these asset-backed securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement. (f) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"). Generally, increases (decreases) in the EBITDA multiples would result in higher (lower) fair value measurements. (g) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is percentage of recovery expected. Significant increases (decreases) in percentage of recovery expected in isolation would have resulted in a significantly higher (lower) fair value measurement. (h) Equity securities - For these assets, there were no adjustments to the purchase price. (i) Other assets categorized as Level 3 - For these assets, there were no adjustments to non-binding quoted market prices obtained from third-party pricing sources. (j) Market risk benefits – Many of our fixed indexed annuity products include a GLWB that is considered a MRB. The calculation of the value of MRBs is based on significant unobservable inputs including assumptions related to surrenders and utilization of policy benefits. These assumptions are based on actuarial estimates and past experience. Increases in assumed surrender rates would generally increase the value of a MRB asset or decrease the value of a MRB liability (with decreases in assumed surrender rates having the opposite impacts). Increases in utilization rates would generally decrease the value of a MRB asset or increase the value of a MRB liability (with decreases in utilization rates having the opposite impacts). (k) Embedded derivatives related to fixed indexed annuity products (classified as policyholder account liabilities) - The significant unobservable inputs used in the fair value measurement of our embedded derivatives associated with fixed indexed annuity products are projected portfolio yields, discount rates and surrender rates. Increases (decreases) in projected portfolio yields in isolation would have resulted in a higher (lower) fair value measurement. The discount rate is based on risk free rates (U.S. Treasury rates for similar durations) adjusted for our non-performance risk and risk margins for non-capital market inputs. Increases (decreases) in the discount rates would have resulted in a lower (higher) fair value measurement. Assumed surrender rates are used to project how long the contracts remain in force. Generally, the longer the contracts are assumed to be in force the higher the fair value of the embedded derivative. The embedded derivatives related to fixed indexed annuity products are classified in policyholder account balances and future policy benefits as presented in the note to the consolidated financial statements entitled "Derivatives". The following table provides additional information about the significant unobservable (Level 3) inputs developed internally by the Company to determine fair value for certain assets and liabilities carried at fair value at December 31, 2022 (dollars in millions): Fair value at December 31, 2022 Valuation techniques Unobservable inputs Range (weighted average) (a) Assets: Corporate securities (b) $ 2.9 Discounted cash flow analysis Discount margins 2.23% - 3.94% (2.25%) Corporate securities (c) 3.5 Recovery method Percent of recovery expected 0.00% - 35.00% (35.00%) Corporate securities (d) .5 Unadjusted purchase price Not applicable Not applicable Asset-backed securities (e) 21.8 Discounted cash flow analysis Discount margins 2.50% - 3.86% (3.30%) |
LIABILITIES FOR INSURANCE PRODU
LIABILITIES FOR INSURANCE PRODUCTS | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
LIABILITIES FOR INSURANCE PRODUCTS | LIABILITIES FOR INSURANCE PRODUCTS The liability for future policy benefits is determined based on numerous assumptions. The most significant assumptions for our life and annuity business are mortality and lapse/withdrawal rates which are based on our experience and, in cases of limited experience, industry experience. Mortality and lapse/withdrawal rates also take into consideration future expectations in policyholder behavior that may vary from past experience. For our health business, mortality rates, lapse rates, morbidity assumptions and future rate increases are based on our experience and, in cases of limited experience, industry experience. Such assumptions also consider future expectations in policyholder behavior that may vary from past experience. In 2023 and 2022, we reviewed our actual mortality, lapse and morbidity experience and updated our assumptions for future cash flows. The impact of updating these assumptions is reflected in the "Effect of changes in cash flow assumptions" line items in the tables below. The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the year ended December 31, 2023 (dollars in millions): 2023 Supplemental health Medicare supplement Long-term care Traditional life Other annuities Present value of expected net premiums ("PVENP"), beginning of period $ 2,781.3 $ 2,800.6 $ 1,034.1 $ 2,175.0 $ — Effect of changes in discount rate assumptions, beginning of period 188.4 196.4 23.2 137.1 — Beginning PVENP at original discount rate 2,969.7 2,997.0 1,057.3 2,312.1 — Effect of changes in cash flow assumptions (145.0) 76.0 (32.1) 33.0 — Effect of actual variances from expected experience (57.2) 20.1 33.4 (71.0) — Adjusted beginning of period PVENP 2,767.5 3,093.1 1,058.6 2,274.1 — Issuances 261.3 328.8 98.7 378.2 6.9 Interest accrual 127.4 123.3 49.9 94.0 — Net premiums collected (351.2) (436.9) (159.2) (399.1) (6.9) Ending PVENP at original discount rate 2,805.0 3,108.3 1,048.0 2,347.2 — Effect of changes in discount rate assumptions, end of period (86.8) (99.1) 7.6 (67.6) — PVENP, end of period $ 2,718.2 $ 3,009.2 $ 1,055.6 $ 2,279.6 $ — Present value of expected future policy benefits ("PVEFPB"), beginning of period $ 5,886.8 $ 3,033.1 $ 4,158.1 $ 4,417.9 $ 310.9 Effect of changes in discount rate assumptions, beginning of period 483.3 212.0 28.5 336.6 15.4 Beginning PVEFPB at original discount rate 6,370.1 3,245.1 4,186.6 4,754.5 326.3 Effect of changes in cash flow assumptions (187.0) 86.5 (39.0) 34.5 (3.5) Effect of actual variances from expected experience (65.8) 30.3 47.2 (86.9) 2.3 Adjusted beginning of period PVEFPB 6,117.3 3,361.9 4,194.8 4,702.1 325.1 Issuances 261.7 328.9 99.4 388.4 7.0 Interest accrual 295.0 133.9 223.9 206.7 14.8 Benefit payments (420.9) (479.8) (286.3) (431.6) (35.0) Ending PVEFPB at original discount rate 6,253.1 3,344.9 4,231.8 4,865.6 311.9 Effect of changes in discount rate assumptions, end of period (229.8) (108.3) 132.8 (170.9) (3.0) PVEFPB, end of period $ 6,023.3 $ 3,236.6 $ 4,364.6 $ 4,694.7 $ 308.9 Net liability for future policy benefits $ 3,305.1 $ 227.4 $ 3,309.0 $ 2,415.1 $ 308.9 Flooring impact — .5 — — — Adjusted net liability for future policy benefits 3,305.1 227.9 3,309.0 2,415.1 308.9 Related reinsurance recoverable (1.3) — (366.6) (194.2) — Net liability for future policy benefits, net of reinsurance recoverable $ 3,303.8 $ 227.9 $ 2,942.4 $ 2,220.9 $ 308.9 The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the year ended December 31, 2022 (dollars in millions): 2022 Supplemental health Medicare supplement Long-term care Traditional life Other annuities PVENP, beginning of period $ 3,496.8 $ 3,454.0 $ 1,313.4 $ 2,483.7 $ — Effect of changes in discount rate assumptions, beginning of period (525.6) (341.8) (183.2) (239.4) — Beginning PVENP at original discount rate 2,971.2 3,112.2 1,130.2 2,244.3 — Effect of changes in cash flow assumptions 8.3 — (17.3) 9.5 — Effect of actual variances from expected experience (79.6) (61.3) (27.2) (102.6) — Adjusted beginning of period PVENP 2,899.9 3,050.9 1,085.7 2,151.2 — Issuances 298.6 286.9 87.1 479.1 7.1 Interest accrual 123.6 117.2 50.5 83.0 — Net premiums collected (352.4) (458.0) (166.0) (401.2) (7.1) Ending PVENP at original discount rate 2,969.7 2,997.0 1,057.3 2,312.1 — Effect of changes in discount rate assumptions, end of period (188.4) (196.4) (23.2) (137.1) — PVENP, end of period $ 2,781.3 $ 2,800.6 $ 1,034.1 $ 2,175.0 $ — PVEFPB, beginning of period $ 7,688.0 $ 3,750.5 $ 5,501.6 $ 5,395.7 $ 431.9 Effect of changes in discount rate assumptions, beginning of period (1,414.8) (373.8) (1,291.2) (767.3) (88.4) Beginning PVEFPB at original discount rate 6,273.2 3,376.7 4,210.4 4,628.4 343.5 Effect of changes in cash flow assumptions 7.9 — (32.8) 25.2 — Effect of actual variances from expected experience (82.8) (63.8) (36.1) (120.1) (4.2) Adjusted beginning of period PVEFPB 6,198.3 3,312.9 4,141.5 4,533.5 339.3 Issuances 299.1 286.2 87.1 495.0 7.9 Interest accrual 289.1 128.4 222.9 193.6 15.2 Benefit payments (416.4) (482.4) (264.9) (467.6) (36.1) Ending PVEFPB at original discount rate 6,370.1 3,245.1 4,186.6 4,754.5 326.3 Effect of changes in discount rate assumptions, end of period (483.3) (212.0) (28.5) (336.6) (15.4) PVEFPB, end of period $ 5,886.8 $ 3,033.1 $ 4,158.1 $ 4,417.9 $ 310.9 Net liability for future policy benefits $ 3,105.5 $ 232.5 $ 3,124.0 $ 2,242.9 $ 310.9 Flooring impact 3.5 .3 2.8 — — Adjusted net liability for future policy benefits 3,109.0 232.8 3,126.8 2,242.9 310.9 Related reinsurance recoverable (2.6) — (339.2) (199.5) — Net liability for future policy benefits, net of reinsurance recoverable $ 3,106.4 $ 232.8 $ 2,787.6 $ 2,043.4 $ 310.9 The following table reconciles the net liability for future policy benefits to the amount presented in the consolidated balance sheet (dollars in millions): 2023 2022 Balances included in the future policy benefits rollforwards: Supplemental health $ 3,305.1 $ 3,109.0 Medicare supplement 227.9 232.8 Long-term care 3,309.0 3,126.8 Traditional life 2,415.1 2,242.9 Other annuities 308.9 310.9 Reserves excluded from rollforward (a) 2,526.9 2,619.8 Deferred profit liability 64.8 55.2 Amount of reserves above (below) policyholder account balances (b) (260.2) (491.9) Future loss reserves (c) 30.7 34.7 Future policy benefits $ 11,928.2 $ 11,240.2 _______________ (a) Primarily comprised of blocks of business that are 100% ceded. (b) Such amount represents the difference between: (i) the total insurance liabilities for our fixed indexed annuities (including the host contract and the related embedded derivative); and (ii) the policyholder account balances for these products. The accounting requirement to bifurcate the embedded derivative and value it at the current estimated fair value results in this amount. (c) In certain instances for interest-sensitive products, the total insurance liabilities for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (the "future loss reserve") be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. Many of our fixed indexed annuity products include a GLWB that is considered a MRB. The calculation of MRBs includes market assumptions (interest rate, equity returns, volatility and dividend yields) and nonmarket assumptions (mortality rates, surrender and withdrawal rates, GLWB utilization and spreads). Market assumptions are updated quarterly to reflect current market conditions. During 2023, we reviewed the nonmarket assumptions used to calculate MRBs and determined that such assumptions were appropriate. The following table presents the balance of and changes in MRBs associated with our fixed indexed annuities (dollars in millions): 2023 2022 Net liability (asset), beginning of period $ (54.0) $ 86.2 Effect of changes in the instrument-specific credit risk, beginning of period 12.2 12.1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk (41.8) 98.3 Issuances (.2) (1.6) Interest accrual 21.3 16.5 Attributed fees collected — — Benefit payments — — Effect of changes in interest rates (13.1) (159.5) Effect of changes in equity markets 5.9 (9.5) Effect of changes in equity index volatility (23.0) 13.4 Actual policyholder behavior different from expected behavior 3.8 1.1 Effect of changes in future expected policyholder behavior - other (13.1) (1.0) Effect of changes in future expected policyholder behavior - risk margin (1.5) (4.3) Effect of changes in assumptions (1.5) 4.8 Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk (63.2) (41.8) Effect of changes in the instrument-specific credit risk, end of period (4.8) (12.2) Net liability (asset), end of period (68.0) (54.0) Reinsurance recoverable, end of period — — Net liability (asset), end of period, net of reinsurance $ (68.0) $ (54.0) Balance reported as an asset $ 75.4 $ 65.3 Balance reported as a liability 7.4 11.3 Net liability (asset) $ (68.0) $ (54.0) Net amount at risk $ 44.3 $ 69.7 Weighted average attained age of contract holders 69 68 The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the consolidated statement of operations (dollars in millions): Gross premiums (a) Interest accretion (b) 2023 2022 2021 2023 2022 2021 Other annuity $ 8.1 $ 8.7 $ 6.4 $ 14.8 $ 15.2 $ 16.1 Supplemental health 705.4 691.7 688.0 167.6 165.5 163.5 Medicare supplement 608.1 644.9 705.2 10.6 11.2 11.8 Long-term care 325.5 323.6 323.6 174.0 172.4 170.1 Traditional life 708.7 692.5 685.8 112.7 110.6 113.9 Total $ 2,355.8 $ 2,361.4 $ 2,409.0 $ 479.7 $ 474.9 $ 475.4 _____________________ (a) Such amounts are included in insurance policy income in the consolidated statement of operations. (b) Such amounts are included in insurance policy benefits in the consolidated statement of operations. The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts (dollars in millions): 2023 2022 Undiscounted Discounted (a) Undiscounted Discounted (a) Other annuity Expected future gross premiums $ — $ — $ — $ — Expected future benefits and expenses 376.7 308.9 403.4 310.9 Supplemental health Expected future gross premiums 8,909.8 5,625.9 8,921.1 5,455.3 Expected future benefits and expenses 10,783.5 6,023.3 10,996.1 5,886.8 Medicare supplement Expected future gross premiums 5,698.1 4,090.4 5,524.9 3,898.9 Expected future benefits and expenses 4,544.1 3,236.6 4,322.8 3,033.1 Long-term care Expected future gross premiums 3,280.4 2,353.4 2,971.9 2,126.0 Expected future benefits and expenses 7,680.6 4,364.6 7,482.4 4,158.1 Traditional life Expected future gross premiums 5,580.4 4,069.6 5,347.9 3,823.9 Expected future benefits and expenses 7,538.5 4,694.7 7,332.3 4,417.9 _____________________ (a) Calculated at the discount rates at period end. Loss expense as a result of net premium ratio capping was not material in the three years ended December 31, 2023. The following table provides the weighted average durations (under locked-in rates) of the liability for future policy benefits in years: 2023 2022 Other annuity 9.6 9.7 Supplemental health 11.4 11.8 Medicare supplement 6.4 6.0 Long-term care 10.6 10.6 Traditional life 10.4 10.1 The following table provides the weighted average interest rates for the liability for future policy benefits: 2023 2022 Other annuity Interest accretion rate 4.81 % 4.75 % Current discount rate 5.09 % 5.46 % Supplemental health Interest accretion rate 5.01 % 5.05 % Current discount rate 5.07 % 5.45 % Medicare supplement Interest accretion rate 4.29 % 4.25 % Current discount rate 4.92 % 5.26 % Long-term care Interest accretion rate 5.68 % 5.68 % Current discount rate 5.12 % 5.49 % Traditional life Interest accretion rate 4.77 % 4.78 % Current discount rate 5.09 % 5.46 % The following tables present the balances of and changes in the liability for policyholder account balances (dollars in millions): 2023 Fixed indexed annuities Fixed interest annuities Other annuities Interest-sensitive life (b) Funding agreements Other (a) Balance, beginning of period excluding contracts 100% ceded $ 9,490.4 $ 1,663.1 $ 127.1 $ 1,209.6 $ 1,410.8 $ 395.5 Issuances (funds collected from new business) 1,373.7 197.0 — 40.8 — — Premiums received (premiums collected from inforce business) .1 2.7 28.1 203.4 — 273.4 Policy charges (19.7) (1.0) — (188.3) — — Surrenders and withdrawals (738.3) (164.6) (37.6) (31.1) (28.6) (290.0) Benefit payments (243.9) (106.9) (5.9) (24.7) — (.1) Interest credited 112.6 46.1 2.3 46.0 28.8 2.6 Other 24.3 — (.9) (.5) — (.4) Balance, end of period excluding contracts 100% ceded 9,999.2 1,636.4 113.1 1,255.2 1,411.0 381.0 Balance, end of period for contracts 100% ceded 139.4 592.4 25.2 104.6 — 10.3 Balance, end of period $ 10,138.6 $ 2,228.8 $ 138.3 $ 1,359.8 $ 1,411.0 $ 391.3 Balance, end of period, reinsurance ceded (139.4) (592.4) (25.2) (122.9) — (24.1) Balance, end of period, net of reinsurance $ 9,999.2 $ 1,636.4 $ 113.1 $ 1,236.9 $ 1,411.0 $ 367.2 Weighted average crediting rate 1.8 % 2.8 % 2.4 % 3.8 % 2.0 % 0.8 % Cash surrender value, net of reinsurance $ 9,326.2 $ 1,610.0 $ 113.1 $ 1,013.6 $ — $ 367.2 _________________ (a) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks. (b) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $28,241.0 million at the balance sheet date. 2022 Fixed indexed annuities Fixed interest annuities Other annuities Interest-sensitive life (b) Funding agreements Other (a) Balance, beginning of period excluding contracts 100% ceded $ 8,681.0 $ 1,806.1 $ 131.2 $ 1,163.9 $ 502.0 $ 368.0 Issuances (funds collected from new business) 1,509.2 83.7 — 42.1 899.0 — Premiums received (premiums collected from inforce business) .3 3.7 34.1 192.6 — 265.0 Policy charges (14.4) (.7) — (181.4) — — Surrenders and withdrawals (567.5) (149.2) (35.0) (26.7) (18.7) (240.1) Benefit payments (247.8) (127.1) (5.5) (23.9) — (.1) Interest credited 107.6 46.1 2.3 43.1 28.5 2.7 Other 22.0 .5 — (.1) — — Balance, end of period excluding contracts 100% ceded 9,490.4 1,663.1 127.1 1,209.6 1,410.8 395.5 Balance, end of period for contracts 100% ceded 154.4 632.9 26.3 113.4 — 10.7 Balance, end of period $ 9,644.8 $ 2,296.0 $ 153.4 $ 1,323.0 $ 1,410.8 $ 406.2 Balance, end of period, reinsurance ceded (154.4) (632.9) (26.3) (133.8) — (25.0) Balance, end of period, net of reinsurance $ 9,490.4 $ 1,663.1 $ 127.1 $ 1,189.2 $ 1,410.8 $ 381.2 Weighted average crediting rate 1.5 % 2.8 % 1.9 % 3.7 % 2.0 % 0.7 % Cash surrender value, net of reinsurance $ 8,842.7 $ 1,651.7 $ 127.1 $ 964.4 $ — $ 381.2 _________________ (a) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks. (b) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $26,296.9 million at the balance sheet date. The following table reconciles the liability for policyholder account balances to the amount presented in the consolidated balance sheet (dollars in millions): 2023 2022 Amounts included in the liability for policyholder account balances rollforwards: Fixed indexed annuities $ 10,138.6 $ 9,644.8 Fixed interest annuities 2,228.8 2,296.0 Other annuities 138.3 153.4 Interest-sensitive life 1,359.8 1,323.0 Funding agreements 1,411.0 1,410.8 Other 391.3 406.2 Total $ 15,667.8 $ 15,234.2 The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (dollars in millions): 2023 Range of guaranteed minimum crediting rates (a) At guaranteed minimum 1-50 basis points above 51-150 basis points above Greater than 150 basis points above Total Fixed interest annuities 0.00%-2.99% 112.9 232.6 225.3 105.7 $ 676.5 3.00%-4.99% 1,438.4 27.3 — — 1,465.7 5.00% and greater 86.6 — — — 86.6 Subtotal 1,637.9 259.9 225.3 105.7 2,228.8 Other annuities 0.00%-2.99% 34.4 25.0 — — 59.4 3.00%-4.99% 44.9 — — — 44.9 5.00% and greater 34.0 — — — 34.0 Subtotal 113.3 25.0 — — 138.3 Interest-sensitive life 0.00%-2.99% 16.2 7.9 14.9 637.7 676.7 3.00%-4.99% 448.1 50.1 162.2 .5 660.9 5.00% and greater 21.7 .5 — — 22.2 Subtotal 486.0 58.5 177.1 638.2 1,359.8 Other 0.00%-2.99% 17.3 350.8 — — 368.1 3.00%-4.99% 23.0 — — — 23.0 5.00% and greater .2 — — — .2 Subtotal 40.5 350.8 — — 391.3 Total 0.00%-2.99% 180.8 616.3 240.2 743.4 1,780.7 3.00%-4.99% 1,954.4 77.4 162.2 .5 2,194.5 5.00% and greater 142.5 .5 — — 143.0 Total policyholder account balances, excluding fixed indexed annuities $ 2,277.7 $ 694.2 $ 402.4 $ 743.9 4,118.2 Fixed indexed annuity account balances 10,138.6 Funding agreements 1,411.0 Total policyholder account balances $ 15,667.8 ____________________ (a) Excludes the account balances related to: (i) fixed indexed annuity contracts which do not have a minimum crediting rate since returns are based on an index; and (ii) funding agreements which have a fixed crediting rate. 2022 Range of guaranteed minimum crediting rates (a) At guaranteed minimum 1-50 basis points above 51-150 basis points above Greater than 150 basis points above Total Fixed interest annuities 0.00%-2.99% 159.0 293.7 41.9 73.7 $ 568.3 3.00%-4.99% 1,610.0 27.4 .1 — 1,637.5 5.00% and greater 90.2 — — — 90.2 Subtotal 1,859.2 321.1 42.0 73.7 2,296.0 Other annuities 0.00%-2.99% 46.7 30.0 — — 76.7 3.00%-4.99% 66.2 — — — 66.2 5.00% and greater 10.5 — — — 10.5 Subtotal 123.4 30.0 — — 153.4 Interest-sensitive life 0.00%-2.99% 8.7 — 54.4 200.9 264.0 3.00%-4.99% 401.8 120.6 147.0 366.6 1,036.0 5.00% and greater 22.1 .5 — .4 23.0 Subtotal 432.6 121.1 201.4 567.9 1,323.0 Other 0.00%-2.99% 18.0 363.9 — — 381.9 3.00%-4.99% 23.9 — — — 23.9 5.00% and greater .4 — — — .4 Subtotal 42.3 363.9 — — 406.2 Total 0.00%-2.99% 232.4 687.6 96.3 274.6 1,290.9 3.00%-4.99% 2,101.9 148.0 147.1 366.6 2,763.6 5.00% and greater 123.2 .5 — .4 124.1 Total policyholder account balances, excluding fixed indexed annuities $ 2,457.5 $ 836.1 $ 243.4 $ 641.6 4,178.6 Fixed indexed annuity account balances 9,644.8 Funding agreements 1,410.8 Total policyholder account balances $ 15,234.2 ____________________ (a) Excludes the account balances related to: (i) fixed indexed annuity contracts which do not have a minimum crediting rate since returns are based on an index; and (ii) funding agreements which have a fixed crediting rate. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense were as follows (dollars in millions): 2023 2022 2021 Current tax expense $ 68.3 $ 31.8 $ 64.1 Deferred tax expense 12.0 154.1 98.7 Total income tax expense $ 80.3 $ 185.9 $ 162.8 The Coronavirus Aid, Relief, and Economic Security ("CARES") Act, a tax-and-spending package intended to provide economic relief to address the impact of the novel coronavirus pandemic, was signed into law in March 2020. Provisions in the CARES Act permitted NOLs arising in a taxable year beginning after December 31, 2017, and before January 1, 2021 to be allowed as a carryback to each of the five taxable years preceding the taxable year of such loss. Accordingly, we were able to carryback the NOL created in 2018 related to the long-term care reinsurance transaction to 2017 and 2016 resulting in a $34.0 million tax benefit in 2020 due to the difference in tax rates between the current enacted rate of 21% and the enacted rate in 2016 and 2017 of 35%. This provision also accelerated the utilization of approximately $375 million of life NOLs and restored approximately $130 million of non-life NOLs. Further, the CARES Act temporarily repealed the 80 percent limitation for taxable years beginning before January 1, 2021 (as required under the Tax Cuts and Job Act). This provision resulted in the acceleration of approximately $105 million of life NOLs and restored approximately $35 million of non-life NOLs. In July 2021, we received an $80 million refund from the Internal Revenue Service (the "IRS") pursuant to the carryback provisions in the CARES Act. A reconciliation of the U.S. statutory corporate tax rate to the effective rate reflected in the consolidated statement of operations is as follows: 2023 2022 2021 U.S. statutory corporate rate 21.0 % 21.0 % 21.0 % Non-taxable income and nondeductible benefits, net (.7) (.4) (.5) State taxes 2.2 2.2 1.7 Effective tax rate 22.5 % 22.8 % 22.2 % The components of the Company's income tax assets and liabilities are summarized below (dollars in millions): 2023 2022 Deferred tax assets: Net federal operating loss carryforwards $ 77.1 $ 166.0 Net state operating loss carryforwards 2.5 2.5 Insurance liabilities 322.8 298.5 Indirect costs allocable to self-constructed real estate assets 252.9 214.8 Accumulated other comprehensive loss 445.5 552.4 Other 35.6 7.3 Gross deferred tax assets 1,136.4 1,241.5 Deferred tax liabilities: Investments (36.3) (37.2) Present value of future profits and deferred acquisition costs (163.0) (148.9) Gross deferred tax liabilities (199.3) (186.1) Net deferred tax assets 937.1 1,055.4 Current income taxes prepaid (accrued) (.9) 8.0 Income tax assets, net $ 936.2 $ 1,063.4 Our income tax expense includes deferred income taxes arising from temporary differences between the financial reporting and tax bases of assets and liabilities and NOLs. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which temporary differences are expected to be recovered or paid. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period when the changes are enacted. A reduction of the net carrying amount of deferred tax assets by establishing a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. In assessing the need for a valuation allowance, all available evidence, both positive and negative, are considered to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, our experience with operating loss and tax credit carryforwards expiring unused, and tax planning strategies. We evaluate the need to establish a valuation allowance for our deferred income tax assets on an ongoing basis using a deferred tax valuation model. Our model is adjusted to reflect changes in our projections of future taxable income. Our estimates of future taxable income are based on evidence we consider to be objectively verifiable. At December 31, 2023, our projection of future taxable income for purposes of determining the valuation allowance is based on our estimates of such future taxable income through the date our NOLs expire. Such estimates are subject to numerous risks and uncertainties and the extent to which actual impacts differ from the assumptions used in our deferred tax valuation model. Based on our assessment, we have concluded that it is more likely than not that all our deferred tax assets of $937.1 million will be realized through future taxable earnings. Recovery of our deferred tax asset is dependent on achieving the level of future taxable income projected in our deferred tax valuation model and failure to do so could result in an increase in the valuation allowance in a future period. The recognition of a valuation allowance would increase income tax expense and reduce shareholders' equity, and such an increase could have a significant impact upon our earnings in the future. The Internal Revenue Code (the "Code") limits the extent to which losses realized by a non-life entity (or entities) may offset income from a life insurance company (or companies) to the lesser of: (i) 35 percent of the income of the life insurance company; or (ii) 35 percent of the total loss of the non-life entities (including NOLs of the non-life entities). There is no similar limitation on the extent to which losses realized by a life insurance entity (or entities) may offset income from a non-life entity (or entities). Section 382 of the Code imposes limitations on a corporation's ability to use its NOLs when the company undergoes a 50 percent ownership change over a three-year period. Future transactions and the timing of such transactions could cause an ownership change for Section 382 income tax purposes. Such transactions may include, but are not limited to, additional repurchases under our securities repurchase program, issuances of common stock and acquisitions or sales of shares of CNO stock by certain holders of our shares, including persons who have held, currently hold or may accumulate in the future five percent or more of our outstanding common stock for their own account. Many of these transactions are beyond our control. If an additional ownership change were to occur for purposes of Section 382, we would be required to calculate an annual restriction on the use of our NOLs to offset future taxable income. The annual restriction would be calculated based upon the value of CNO's equity at the time of such ownership change, multiplied by a federal long-term tax exempt rate (3.81 percent at December 31, 2023), and the annual restriction could limit our ability to use a substantial portion of our NOLs to offset future taxable income. We regularly monitor ownership change (as calculated for purposes of Section 382) and, as of December 31, 2023, we were below the 50 percent ownership change level that could limit our ability to utilize our NOLs. In 2009, the Company's Board of Directors adopted a Section 382 Rights Agreement designed to protect shareholder value by preserving the value of our tax assets primarily associated with tax NOLs under Section 382. The Section 382 Rights Agreement was adopted to reduce the likelihood of an ownership change occurring by deterring the acquisition of stock that would create "5 percent shareholders" as defined in Section 382. The Section 382 Rights Agreement has been amended five times, most recently effective November 13, 2023 (the "Fifth Amended and Restated Section 382 Rights Agreement"). The Fifth Amended and Restated Section 382 Rights Agreement extended the expiration date of the Section 382 Rights Agreement to November 13, 2026, updated the purchase price of the rights described below and provided for a new series of preferred stock relating to the rights that is substantially identical to the prior series of preferred stock. The Company expects to submit the Fifth Amended and Restated Section 382 Rights Agreement to the Company's stockholders for approval at the Company’s 2024 annual meeting. Under the Section 382 Rights Agreement, one right was distributed for each share of our common stock outstanding as of the close of business on January 30, 2009 and for each share issued after that date. Pursuant to the Fifth Amended and Restated Section 382 Rights Agreement, if any person or group (subject to certain exemptions) becomes an owner of more than 4.99 percent of the Company's outstanding common stock (or any other interest in the Company that would be treated as "stock" under applicable Section 382 regulations) without the approval of the Board of Directors, there would be a triggering event causing significant dilution in the voting power and economic ownership of that person or group. Shareholders who held more than 4.99 percent of the Company's outstanding common stock as of November 13, 2023 will trigger a dilutive event only if they acquire additional shares exceeding one percent of our outstanding shares without prior approval from the Board of Directors. In 2010, our shareholders approved an amendment to CNO's certificate of incorporation designed to prevent certain transfers of common stock which could otherwise adversely affect our ability to use our NOLs (the "Original Section 382 Charter Amendment"). Subject to the provisions set forth in the Original Section 382 Charter Amendment, the transfer restrictions generally will restrict any direct or indirect transfer (such as transfers of our common stock that results from the transfer of interests in other entities that own our stock) if: (i) the transferor is a person or public group (as such term is defined in the regulations under Section 382) who directly or indirectly owns or is deemed to own 4.99% or more of our common stock; (ii) the effect of the transfer would be to increase the direct or indirect ownership of our common stock by any person or public group from less than 4.99% to 4.99% or more of our common stock; or (iii) the effect of the transfer would be to increase the percentage of our common stock owned directly or indirectly by a person or public group owning or deemed to own 4.99% or more of our common stock. The Original Section 382 Charter Amendment was amended and extended in 2013, 2016, 2019 and 2022 (the "2022 Section 382 Charter Amendment"). The expiration date for the 2022 Section 382 Charter Amendment is July 31, 2025. We have $367.2 million of federal NOLs as of December 31, 2023, as summarized below (dollars in millions): Net operating loss Year of expiration carryforwards 2026 $ 15.7 2027 10.8 2028 80.3 2029 213.2 2030 .3 2031 .2 2032 44.4 2033 .6 2034 .9 2035 .8 Total federal non-life NOLs $ 367.2 Our non-life NOLs can be used to offset 35 percent of life insurance company taxable income and 100 percent of non-life company taxable income until all non-life NOLs are utilized or expire. We also had deferred tax assets related to NOLs for state income taxes of $2.5 million at both December 31, 2023 and 2022. The related state NOLs are available to offset future state taxable income in certain states and are expected to be fully utilized prior to expiration. There were no unrecognized tax benefits in either 2023 or 2022. |
NOTES PAYABLE - DIRECT CORPORAT
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS | NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS The following notes payable were direct corporate obligations of the Company as of December 31, 2023 and 2022 (dollars in millions): 2023 2022 5.250% Senior Notes due May 2025 $ 500.0 $ 500.0 5.250% Senior Notes due May 2029 500.0 500.0 5.125% Subordinated Debentures due 2060 150.0 150.0 Revolving Credit Agreement (as defined below) — — Unamortized debt issuance costs (9.5) (11.2) Direct corporate obligations $ 1,140.5 $ 1,138.8 Subordinated Debentures due 2060 In November 2020, the Company issued $150.0 million of 5.125% Subordinated Debentures due 2060 (the "Debentures"). The terms of the Debentures are set forth in the Indenture, dated as of June 12, 2019 (the "2019 Base Indenture") as supplemented by the Second Supplemental Indenture, dated as of November 25, 2020 (the "2020 Supplemental Indenture" and, together with the 2019 Base Indenture, the "2020 Indenture"), each between the Company and U.S. Bank National Association, as trustee (the "Trustee"). The Debentures bear interest at an annual rate of 5.125%, payable quarterly in arrears on February 25, May 25, August 25 and November 25 commencing on February 25, 2021. The Debentures mature on November 25, 2060. The Company used the net proceeds from the issuance of the Debentures for general corporate purposes. The Debentures are unsecured and rank junior to all existing and future senior indebtedness (including the 2025 Notes and 2029 Notes, each as defined below). In addition, the Debentures are structurally subordinated to all existing and future indebtedness and other liabilities of the Company's subsidiaries. The Company may redeem the Debentures: (i) in whole at any time or in part from time to time on or after November 25, 2025, at a redemption price equal to their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the Debentures are not redeemed in whole, at least $25 million aggregate principal amount of the Debentures must remain outstanding after giving effect to such redemption; (ii) in whole, but not in part, at any time prior to November 25, 2025, within 90 days of the occurrence of a "tax event" or a "regulatory capital event" (as such terms are defined in the 2020 Indenture) at a redemption price equal to their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; or (iii) in whole, but not in part, at any time prior to November 25, 2025, within 90 days of the occurrence of a "rating agency event" (as such term is defined in the 2020 Indenture) at a redemption price equal to 102% of their principal amount plus any accrued and unpaid interest to, but excluding, the date of redemption. The 2020 Indenture contains covenants that will limit the ability of the Company and certain of its subsidiaries to consolidate, merge or sell, lease, transfer or otherwise dispose of its properties and assets substantially as an entirety. An event of default with respect to the Debentures will occur only upon certain events of our bankruptcy, insolvency or receivership (as specified in the 2020 Indenture). 2029 Notes On June 12, 2019, the Company executed the 2019 Base Indenture and the First Supplemental Indenture, dated as of June 12, 2019 (the "2019 Supplemental Indenture" and, together with the 2019 Base Indenture, the "2019 Indenture"), between the Company and the Trustee pursuant to which the Company issued $500.0 million aggregate principal amount of 5.250% Senior Notes due 2029 (the "2029 Notes"). The Company used the net proceeds from the offering of the 2029 Notes to: (i) repay all amounts outstanding under its existing Revolving Credit Agreement (as defined below); (ii) redeem and satisfy and discharge all of its outstanding 4.500% Senior Notes due May 2020 (the "2020 Notes"); and (iii) pay fees and expenses related to the foregoing. The remaining proceeds were used for general corporate purposes. The 2029 Notes mature on May 30, 2029 and interest on the 2029 Notes is payable at 5.250% per annum. Interest on the 2029 Notes is payable semi-annually in cash in arrears on May 30 and November 30 of each year, commencing on November 30, 2019. The 2029 Notes are senior unsecured obligations and rank equally with the Company’s other senior unsecured and unsubordinated debt from time to time outstanding. The 2029 Notes are effectively subordinated to all of the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2029 Notes are structurally subordinated to all existing and future indebtedness and other liabilities of the Company’s subsidiaries. Prior to February 28, 2029, the Company may redeem some or all of the 2029 Notes at any time or from time to time at a "make-whole" redemption price plus accrued and unpaid interest to, but not including, the redemption date. On and after February 28, 2029, the Company may redeem some or all of the 2029 Notes at any time or from time to time at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest to, but not including, the redemption date. Upon the occurrence of a Change of Control Repurchase Event (as defined in the 2019 Indenture), the Company will be required to make an offer to repurchase the 2029 Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. In the event that the 2029 Notes receive investment grade credit ratings, this covenant will cease to apply. The 2019 Indenture contains covenants that restrict the Company’s ability, with certain exceptions, to: • create liens; • issue, sell, transfer or otherwise dispose of any shares of capital stock of any Insurance Subsidiary (as defined in the 2019 Indenture); and • consolidate or merge with or into other companies or transfer all or substantially all of the Company’s assets. The 2019 Indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the 2019 Indenture, failure to pay at maturity or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the Trustee or holders of at least 50% in principal amount of the then outstanding 2029 Notes may declare the principal of and accrued but unpaid interest, including any additional interest, on all of the 2029 Notes to be due and payable. 2025 Notes On May 19, 2015, the Company executed the Indenture, dated as of May 19, 2015 (the "2015 Base Indenture") and the First Supplemental Indenture, dated as of May 19, 2015 (the "2015 Supplemental Indenture" and, together with the 2015 Base Indenture, the "2015 Indenture"), between the Company and the Trustee pursuant to which the Company issued $325.0 million aggregate principal amount of the 2020 Notes and $500.0 million aggregate principal amount of 5.250% Senior Notes due 2025 (the "2025 Notes"). As described above, the 2020 Notes were redeemed on June 12, 2019. The 2025 Notes mature on May 30, 2025. Interest on the 2025 Notes is payable at 5.250% per annum. Interest on the 2025 Notes is payable semi-annually in cash in arrears on May 30 and November 30 of each year, commencing on November 30, 2015. The 2025 Notes are senior unsecured obligations and rank equally with the Company's other senior unsecured and unsubordinated debt from time to time outstanding, including obligations under the Revolving Credit Agreement (as defined below). The 2025 Notes are effectively subordinated to all of the Company's existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2025 Notes are structurally subordinated to all existing and future indebtedness and other liabilities of the Company's subsidiaries. Prior to February 28, 2025, the Company may redeem some or all of the 2025 Notes at any time or from time to time at a "make-whole" redemption price plus accrued and unpaid interest to, but not including, the redemption date. On and after February 28, 2025, the Company may redeem some or all of the 2025 Notes at any time or from time to time at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest to, but not including, the redemption date. Upon the occurrence of a Change of Control Repurchase Event (as defined in the 2015 Indenture), the Company will be required to make an offer to repurchase the 2025 Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The 2015 Indenture contains covenants that restrict the Company’s ability, with certain exceptions, to: • incur certain subsidiary indebtedness without also guaranteeing the 2025 Notes; • create liens; • enter into sale and leaseback transactions; • issue, sell, transfer or otherwise dispose of any shares of capital stock of any Insurance Subsidiary (as defined in the 2015 Indenture); and • consolidate or merge with or into other companies or transfer all or substantially all of the Company’s assets. The 2015 Indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the 2015 Indenture, failure to pay at maturity or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the Trustee or holders of at least 25% in principal amount of the then outstanding 2025 Notes may declare the principal of and accrued but unpaid interest, including any additional interest, on all of the 2025 Notes to be due and payable. Revolving Credit Agreement On May 19, 2015, the Company entered into a $150.0 million four-year unsecured revolving credit agreement with KeyBank National Association, as administrative agent (the "Agent"), and the lenders from time to time party thereto. On May 19, 2015, the Company made an initial drawing of $100.0 million under the Revolving Credit Agreement. On October 13, 2017, the Company entered into an amendment and restatement agreement (the "Amendment Agreement") with respect to its revolving credit agreement (as amended by the Amendment Agreement, the Second Amendment Agreement (as described below), the Third Amendment to Credit Agreement, dated as of August 11, 2021 and the Fourth Amendment (as described below), the "Revolving Credit Agreement"). The Amendment Agreement, among other things, increased the total commitments available under the revolving credit facility from $150.0 million to $250.0 million, increased the aggregate amount of additional incremental loans the Company may incur from $50.0 million to $100.0 million and extended the maturity date of the revolving credit facility from May 19, 2019 to October 13, 2022 (which was further extended in July 2021 as described below). As described above, all amounts outstanding under the Revolving Credit Agreement were repaid in connection with the issuance of the 2029 Notes. On July 16, 2021, the Company entered into a second amendment and restatement agreement (the "Second Amendment Agreement") with respect to its Revolving Credit Agreement. The Second Amendment Agreement, among other things, (i) revises the debt to total capitalization ratio to exclude hybrid securities from the calculation, except to the extent that the aggregate amount outstanding of all such hybrid securities exceeds an amount equal to 15% of total capitalization, (ii) reduces the net equity proceeds prong of the minimum consolidated net worth covenant from 50% to 25%, (iii) removes the aggregate RBC ratio covenant and (iv) extends the maturity date of the revolving credit facility to July 16, 2026. The Second Amendment Agreement continues to contain certain other restrictive covenants with which the Company must comply. On May 4, 2023, the Company entered into a fourth amendment and restatement agreement (the "Fourth Amendment Agreement") with respect to its Revolving Credit Agreement. The Fourth Amendment Agreement replaces the London interbank offered rate with the Secured Overnight Financing Rate ("SOFR") as the applicable reference rate for loans and commitments under the Revolving Credit Agreement denominated in U.S. dollars. The Revolving Credit Agreement includes an uncommitted subfacility for swingline loans of up to $5.0 million, and up to $5.0 million of the Revolving Credit Agreement is available for the issuance of letters of credit. The Company may incur additional incremental loans under the Revolving Credit Agreement in an aggregate principal amount of up to $100.0 million provided that there are no events of default and subject to certain other terms and conditions including the delivery of certain documentation. The interest rate applicable to loans under the Revolving Credit Agreement is calculated, at the Company’s option, as the SOFR (plus a credit spread adjustment of 0.10 percent for all available interest periods) or the base rate plus a margin based on the Company’s unsecured debt rating. The base rate (defined as a per annum rate) is equal to the highest of: (i) the federal funds rate plus 0.50%; (ii) the "prime rate" of the Agent; and (iii) the Adjusted Term SOFR (as defined in the Revolving Credit Agreement) for a one-month interest period plus 1.00 percent per annum. The margins under the Revolving Credit Agreement range from 1.375 percent to 2.125 percent, in the case of loans at the SOFR rate, and 0.375 percent to 1.125 percent, in the case of loans at the base rate. In addition, the daily average undrawn portion of the Revolving Credit Agreement accrues a commitment fee payable quarterly in arrears. The applicable margin for, and the commitment fee applicable to, the Revolving Credit Agreement, will be adjusted from time to time pursuant to a ratings based pricing grid. The Revolving Credit Agreement contains certain financial, affirmative and negative covenants. The negative covenants in the Revolving Credit Agreement include restrictions that relate to, among other things and subject to customary baskets, exceptions and limitations for facilities of this type: • subsidiary debt; • liens; • restrictive agreements; • restricted payments during the continuance of certain events of default; • disposition of assets and sale and leaseback transactions; • transactions with affiliates; • change in business; • fundamental changes; • modification of certain agreements; and • changes to fiscal year. The Revolving Credit Agreement requires the Company to maintain (each as calculated in accordance with the Revolving Credit Agreement): (i) a debt to total capitalization ratio (excluding hybrid securities, except to the extent that the aggregate amount outstanding of all such hybrid securities exceeds an amount equal to 15% of total capitalization) of not more than 35.0 percent (such ratio was 21.5 percent at December 31, 2023); and (ii) a minimum consolidated net worth of not less than the sum of $2,674.0 million plus 25.0% of the net equity proceeds received by the Company from the issuance and sale of equity interests in the Company (the Company's consolidated net worth was $3,792.4 million at December 31, 2023 compared to the minimum requirement of $2,697.0 million). The Revolving Credit Agreement provides for customary events of default (subject in certain cases to customary grace and cure periods), which include, without limitation, the following: • non-payment; • breach of representations, warranties or covenants; • cross-default and cross-acceleration; • bankruptcy and insolvency events; • judgment defaults; • actual or asserted invalidity of documentation with respect to the Revolving Credit Agreement; • change of control; and • customary ERISA defaults. If an event of default under the Revolving Credit Agreement occurs and is continuing, the Agent may accelerate the amounts and terminate all commitments outstanding under the Revolving Credit Agreement. Scheduled Repayment of our Direct Corporate Obligations The scheduled repayment of our direct corporate obligations was as follows at December 31, 2023 (dollars in millions): Year ending December 31, 2024 $ — 2025 500.0 2026 — 2027 — 2028 — Thereafter 650.0 $ 1,150.0 |
LITIGATION AND OTHER LEGAL PROC
LITIGATION AND OTHER LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION AND OTHER LEGAL PROCEEDINGS | LITIGATION AND OTHER LEGAL PROCEEDINGS Legal Proceedings The Company and its subsidiaries are involved in various legal actions in the normal course of business, in which claims for compensatory and punitive damages are asserted, some for substantial amounts. We recognize an estimated loss from these loss contingencies when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Some of the pending matters have been filed as purported class actions and some actions have been filed in certain jurisdictions that permit punitive damage awards that are disproportionate to the actual damages incurred. The amounts sought in certain of these actions are often large or indeterminate and the ultimate outcome of certain actions is difficult to predict. In the event of an adverse outcome in one or more of these matters, there is a possibility that the ultimate liability may be in excess of the liabilities we have established and could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, the resolution of pending or future litigation may involve modifications to the terms of outstanding insurance policies or could impact the timing and amount of rate increases, which could adversely affect the future profitability of the related insurance policies. Based upon information presently available, and in light of legal, factual and other defenses available to the Company and its subsidiaries, the Company does not believe that it is probable that the ultimate liability from either pending or threatened legal actions, after consideration of existing loss provisions, will have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. However, given the inherent difficulty in predicting the outcome of legal proceedings, there exists the possibility that such legal actions could have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. In addition to the inherent difficulty of predicting litigation outcomes, particularly those that will be decided by a jury, some matters purport to seek substantial or an unspecified amount of damages for unsubstantiated conduct spanning several years based on complex legal theories and damages models. The alleged damages typically are indeterminate or not factually supported in the complaint, and, in any event, the Company's experience indicates that monetary demands for damages often bear little relation to the ultimate loss. In some cases, plaintiffs are seeking to certify classes in the litigation and class certification either has been denied or is pending and we have filed oppositions to class certification or sought to decertify a prior class certification. In addition, for many of these cases: (i) there is uncertainty as to the outcome of pending appeals or motions; (ii) there are significant factual issues to be resolved; and/or (iii) there are novel legal issues presented. Accordingly, the Company cannot reasonably estimate the possible loss or range of loss in excess of amounts accrued, if any, or predict the timing of the eventual resolution of these matters. The Company reviews these matters on an ongoing basis. When assessing reasonably possible and probable outcomes, the Company bases its assessment on the expected ultimate outcome following all appeals. On April 9, 2019, Bankers Conseco Life Insurance Company ("BCLIC") and Washington National commenced an action entitled Bankers Conseco Life Insurance Company and Washington National Insurance Company v. Wilmington Trust, National Association , in the Supreme Court of the State of New York, County of New York, Commercial Division (the "Wilmington Action"). BCLIC and Washington National seek an unspecified amount of damages, costs, attorney's fees, and other relief as the court deems appropriate. In the Wilmington Action, BCLIC and Washington National assert claims against Wilmington Trust, National Association ("Wilmington") for breaching its express contractual obligations under four trust agreements pursuant to which Wilmington was the trustee in regard to trust assets ceded as part of reinsurance agreements with Beechwood Re Ltd. ("BRe"), as well as for breaching its fiduciary duties to BCLIC and Washington National. The Court granted Wilmington's motion to dismiss this litigation. BCLIC and Washington National appealed the Court's decision. On April 20, 2021, the New York Appellate Division of the Supreme Court, First Judicial Department unanimously reversed the trial court and reinstated breach of contract and breach of fiduciary duty claims against Wilmington. The case has been resolved by settlement and dismissed. On June 7, 2019, the Joint Official Liquidators of Platinum Partners Value Arbitrage Fund L.P. (in Official Liquidation) and Principal Growth Strategies, LLC, commenced suit against, among others, CNO Financial Group, Inc., BCLIC, Washington National and 40|86 Advisors, Inc. (collectively, the "CNO Parties") in Delaware Chancery Court. Plaintiffs seek an unspecified amount of damages, costs, attorney's fees, and other relief as the court deems appropriate. Plaintiffs allege that the CNO Parties were unjustly enriched when they terminated BCLIC and Washington National's reinsurance agreements with BRe and recaptured assets from reinsurance trusts, in particular, Agera securities. Plaintiffs contend that the Agera securities were fraudulently transferred to the reinsurance trusts by other Platinum-related entities and they are seeking to claw back those Agera securities, or the value of those assets, from the CNO Parties. The CNO Parties had removed the case to the United States District Court for the District of Delaware but on April 6, 2020, the District Court granted the plaintiff's motion to remand the case back to the Delaware Chancery Court. Plaintiffs have filed an Amended Complaint and the CNO Parties have moved to dismiss the Amended Complaint. The Delaware Chancery Court denied the CNO Parties’ motions to dismiss the Amended Complaint on the basis of forum non conveniens, but granted the CNO Parties’ motion to stay the case pending the conclusion of a related matter. On December 1, 2023, the Delaware Chancery Court lifted the stay as of November 30, 2023. On January 25, 2024, the Delaware Chancery Court granted in part and denied in part the CNO Parties’ motion to dismiss the Amended Complaint. The CNO Parties are vigorously contesting the plaintiffs’ claims. On June 28, 2019, BCLIC and Washington National commenced an action entitled Bankers Conseco Life Insurance Company and Washington National Insurance Company v. KPMG LLP , in the Supreme Court of the State of New York, County of New York, Commercial Division (the "KPMG Action"). BCLIC and Washington National seek an unspecified amount of damages, costs, attorney's fees, and other relief as the court deems appropriate. In the KPMG Action, BCLIC and Washington National assert claims against KPMG LLP ("KPMG") for aiding and abetting fraud, constructive fraud and negligent misrepresentation arising from KPMG's alleged role in the Platinum Partners' scheme to defraud BCLIC and Washington National into reinsuring its long-term care business with BRe. The Court granted KPMG’s motion to dismiss this litigation. BCLIC and Washington National appealed the Court's decision. On December 1, 2020, the New York Appellate Division of the Supreme Court, First Judicial Department unanimously reversed the trial court and reinstated the aiding and abetting claim against KPMG. The case has been resolved by settlement and dismissed. On October 5, 2012, plaintiffs William Jeffrey Burnett and Joe H. Camp commenced an action entitled Burnett v. Conseco Life Ins. Co. against, among others, CNO Financial Group, Inc. and CNO Services, LLC (collectively, the "CNO Entities") in the United States District Court for the Central District of California on behalf of a putative class of former interest-sensitive whole life insurance policyholders who surrendered their policies or let them lapse. Plaintiffs' first amended complaint alleges that the CNO Entities are liable under an alter ego theory for Conseco Life Insurance Company's purported breach of the optional premium payment provision (the "Optional Premium Payment") of plaintiffs' insurance policies. In January 2018, the case was transferred to the United States District Court for the Southern District of Indiana. On August 17, 2020, the Court denied the CNO Entities' motions to dismiss. On January 13, 2021, the Court granted final approval of a class action settlement between plaintiffs and co-defendant Conseco Life Insurance Company (n/k/a Wilco Life Insurance Company). The case remains pending against the CNO Entities. On March 25, 2022, the Court certified a Rule 23(b)(3) class of under 2,000 policyholders who invoked the policy's Optional Premium Payment prior to October 2008 and who surrendered their policies between October 7, 2008 and September 1, 2011. The Court's certification order acknowledged the existence of individualized issues of causation and damages, which the Court stated could be addressed in individualized proceedings following a class trial on the alter ego allegations and the meaning of the subject insurance policy language. The CNO Entities continue to vigorously defend the case. Regulatory Examinations and Fines Insurance companies face significant risks related to regulatory investigations and actions. Regulatory investigations generally result from matters related to sales or underwriting practices, payment of contingent or other sales commissions, claim payments and procedures, product design, product disclosure, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, procedures related to canceling policies, changing the way cost of insurance charges are calculated for certain life insurance products or recommending unsuitable products to customers. We are, in the ordinary course of our business, subject to various examinations, inquiries and information requests from state, federal and other authorities. The ultimate outcome of these regulatory actions (including the costs of complying with information requests and policy reviews) cannot be predicted with certainty. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of liabilities we have established and we could suffer significant reputational harm as a result of these matters, which could also have a material adverse effect on our business, financial condition, results of operations or cash flows. Guaranty Fund Assessments The balance sheet at December 31, 2023, included: (i) accruals of $6.0 million, representing our estimate of all known assessments that will be levied against the Company's insurance subsidiaries by various state guaranty associations based on premiums written through December 31, 2023; and (ii) receivables of $9.5 million that we estimate will be recovered through a reduction in future premium taxes as a result of such assessments. At December 31, 2022, such guaranty fund assessment accruals were $6.2 million and such receivables were $10.6 million. These estimates are subject to change when the associations determine more precisely the losses that have occurred and how such losses will be allocated among the insurance companies. We recognized expense for such assessments of $2.0 million, $2.1 million and $2.7 million in 2023, 2022 and 2021, respectively. Guarantees In accordance with the terms of the employment agreements of two of the Company's former chief executive officers, certain wholly-owned subsidiaries of the Company are the guarantors of the former executives' nonqualified supplemental retirement benefits. The liability for such benefits was $19.8 million and $20.5 million at December 31, 2023 and 2022, respectively, and is included in the caption "Other liabilities" in the consolidated balance sheet. Leases and Certain Other Long-Term Commitments The Company leases office space, equipment and computer software under contractual commitments or noncancellable operating lease agreements. Total expense pursuant to these agreements was $96.3 million, $86.4 million and $76.3 million in 2023, 2022 and 2021, respectively. The Company leases office space for certain administrative operations under agreements that expire between 2024 and 2034. We lease sales offices in various states which are generally short-term in length with remaining lease terms expiring between 2024 and 2030. Many leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company's discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term only if the Company is reasonably certain of exercising those options. In determining the present value of lease payments, the Company uses its incremental borrowing rate for borrowings secured by collateral commensurate with the terms of the underlying lease. Information related to our right of use assets are as follows (dollars in millions): 2023 2022 Operating lease expense $ 26.3 $ 24.3 Cash paid for operating lease liability 23.8 25.5 Right of use assets obtained in exchange for lease liabilities (non-cash transactions) 62.4 21.7 Total right of use assets 85.3 46.6 Maturities of our operating lease liabilities as of December 31, 2023 are as follows (dollars in millions): 2024 $ 22.1 2025 16.8 2026 13.4 2027 10.3 2028 8.3 Thereafter 34.6 Total undiscounted lease payments 105.5 Less interest (14.8) Present value of lease liabilities $ 90.7 Weighted average remaining lease term (in years) 7.0 Weighted average discount rate 3.79 % |
LITIGATION AND OTHER LEGAL PROCEEDINGS | LITIGATION AND OTHER LEGAL PROCEEDINGS Legal Proceedings The Company and its subsidiaries are involved in various legal actions in the normal course of business, in which claims for compensatory and punitive damages are asserted, some for substantial amounts. We recognize an estimated loss from these loss contingencies when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Some of the pending matters have been filed as purported class actions and some actions have been filed in certain jurisdictions that permit punitive damage awards that are disproportionate to the actual damages incurred. The amounts sought in certain of these actions are often large or indeterminate and the ultimate outcome of certain actions is difficult to predict. In the event of an adverse outcome in one or more of these matters, there is a possibility that the ultimate liability may be in excess of the liabilities we have established and could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, the resolution of pending or future litigation may involve modifications to the terms of outstanding insurance policies or could impact the timing and amount of rate increases, which could adversely affect the future profitability of the related insurance policies. Based upon information presently available, and in light of legal, factual and other defenses available to the Company and its subsidiaries, the Company does not believe that it is probable that the ultimate liability from either pending or threatened legal actions, after consideration of existing loss provisions, will have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. However, given the inherent difficulty in predicting the outcome of legal proceedings, there exists the possibility that such legal actions could have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. In addition to the inherent difficulty of predicting litigation outcomes, particularly those that will be decided by a jury, some matters purport to seek substantial or an unspecified amount of damages for unsubstantiated conduct spanning several years based on complex legal theories and damages models. The alleged damages typically are indeterminate or not factually supported in the complaint, and, in any event, the Company's experience indicates that monetary demands for damages often bear little relation to the ultimate loss. In some cases, plaintiffs are seeking to certify classes in the litigation and class certification either has been denied or is pending and we have filed oppositions to class certification or sought to decertify a prior class certification. In addition, for many of these cases: (i) there is uncertainty as to the outcome of pending appeals or motions; (ii) there are significant factual issues to be resolved; and/or (iii) there are novel legal issues presented. Accordingly, the Company cannot reasonably estimate the possible loss or range of loss in excess of amounts accrued, if any, or predict the timing of the eventual resolution of these matters. The Company reviews these matters on an ongoing basis. When assessing reasonably possible and probable outcomes, the Company bases its assessment on the expected ultimate outcome following all appeals. On April 9, 2019, Bankers Conseco Life Insurance Company ("BCLIC") and Washington National commenced an action entitled Bankers Conseco Life Insurance Company and Washington National Insurance Company v. Wilmington Trust, National Association , in the Supreme Court of the State of New York, County of New York, Commercial Division (the "Wilmington Action"). BCLIC and Washington National seek an unspecified amount of damages, costs, attorney's fees, and other relief as the court deems appropriate. In the Wilmington Action, BCLIC and Washington National assert claims against Wilmington Trust, National Association ("Wilmington") for breaching its express contractual obligations under four trust agreements pursuant to which Wilmington was the trustee in regard to trust assets ceded as part of reinsurance agreements with Beechwood Re Ltd. ("BRe"), as well as for breaching its fiduciary duties to BCLIC and Washington National. The Court granted Wilmington's motion to dismiss this litigation. BCLIC and Washington National appealed the Court's decision. On April 20, 2021, the New York Appellate Division of the Supreme Court, First Judicial Department unanimously reversed the trial court and reinstated breach of contract and breach of fiduciary duty claims against Wilmington. The case has been resolved by settlement and dismissed. On June 7, 2019, the Joint Official Liquidators of Platinum Partners Value Arbitrage Fund L.P. (in Official Liquidation) and Principal Growth Strategies, LLC, commenced suit against, among others, CNO Financial Group, Inc., BCLIC, Washington National and 40|86 Advisors, Inc. (collectively, the "CNO Parties") in Delaware Chancery Court. Plaintiffs seek an unspecified amount of damages, costs, attorney's fees, and other relief as the court deems appropriate. Plaintiffs allege that the CNO Parties were unjustly enriched when they terminated BCLIC and Washington National's reinsurance agreements with BRe and recaptured assets from reinsurance trusts, in particular, Agera securities. Plaintiffs contend that the Agera securities were fraudulently transferred to the reinsurance trusts by other Platinum-related entities and they are seeking to claw back those Agera securities, or the value of those assets, from the CNO Parties. The CNO Parties had removed the case to the United States District Court for the District of Delaware but on April 6, 2020, the District Court granted the plaintiff's motion to remand the case back to the Delaware Chancery Court. Plaintiffs have filed an Amended Complaint and the CNO Parties have moved to dismiss the Amended Complaint. The Delaware Chancery Court denied the CNO Parties’ motions to dismiss the Amended Complaint on the basis of forum non conveniens, but granted the CNO Parties’ motion to stay the case pending the conclusion of a related matter. On December 1, 2023, the Delaware Chancery Court lifted the stay as of November 30, 2023. On January 25, 2024, the Delaware Chancery Court granted in part and denied in part the CNO Parties’ motion to dismiss the Amended Complaint. The CNO Parties are vigorously contesting the plaintiffs’ claims. On June 28, 2019, BCLIC and Washington National commenced an action entitled Bankers Conseco Life Insurance Company and Washington National Insurance Company v. KPMG LLP , in the Supreme Court of the State of New York, County of New York, Commercial Division (the "KPMG Action"). BCLIC and Washington National seek an unspecified amount of damages, costs, attorney's fees, and other relief as the court deems appropriate. In the KPMG Action, BCLIC and Washington National assert claims against KPMG LLP ("KPMG") for aiding and abetting fraud, constructive fraud and negligent misrepresentation arising from KPMG's alleged role in the Platinum Partners' scheme to defraud BCLIC and Washington National into reinsuring its long-term care business with BRe. The Court granted KPMG’s motion to dismiss this litigation. BCLIC and Washington National appealed the Court's decision. On December 1, 2020, the New York Appellate Division of the Supreme Court, First Judicial Department unanimously reversed the trial court and reinstated the aiding and abetting claim against KPMG. The case has been resolved by settlement and dismissed. On October 5, 2012, plaintiffs William Jeffrey Burnett and Joe H. Camp commenced an action entitled Burnett v. Conseco Life Ins. Co. against, among others, CNO Financial Group, Inc. and CNO Services, LLC (collectively, the "CNO Entities") in the United States District Court for the Central District of California on behalf of a putative class of former interest-sensitive whole life insurance policyholders who surrendered their policies or let them lapse. Plaintiffs' first amended complaint alleges that the CNO Entities are liable under an alter ego theory for Conseco Life Insurance Company's purported breach of the optional premium payment provision (the "Optional Premium Payment") of plaintiffs' insurance policies. In January 2018, the case was transferred to the United States District Court for the Southern District of Indiana. On August 17, 2020, the Court denied the CNO Entities' motions to dismiss. On January 13, 2021, the Court granted final approval of a class action settlement between plaintiffs and co-defendant Conseco Life Insurance Company (n/k/a Wilco Life Insurance Company). The case remains pending against the CNO Entities. On March 25, 2022, the Court certified a Rule 23(b)(3) class of under 2,000 policyholders who invoked the policy's Optional Premium Payment prior to October 2008 and who surrendered their policies between October 7, 2008 and September 1, 2011. The Court's certification order acknowledged the existence of individualized issues of causation and damages, which the Court stated could be addressed in individualized proceedings following a class trial on the alter ego allegations and the meaning of the subject insurance policy language. The CNO Entities continue to vigorously defend the case. Regulatory Examinations and Fines Insurance companies face significant risks related to regulatory investigations and actions. Regulatory investigations generally result from matters related to sales or underwriting practices, payment of contingent or other sales commissions, claim payments and procedures, product design, product disclosure, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, procedures related to canceling policies, changing the way cost of insurance charges are calculated for certain life insurance products or recommending unsuitable products to customers. We are, in the ordinary course of our business, subject to various examinations, inquiries and information requests from state, federal and other authorities. The ultimate outcome of these regulatory actions (including the costs of complying with information requests and policy reviews) cannot be predicted with certainty. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of liabilities we have established and we could suffer significant reputational harm as a result of these matters, which could also have a material adverse effect on our business, financial condition, results of operations or cash flows. Guaranty Fund Assessments The balance sheet at December 31, 2023, included: (i) accruals of $6.0 million, representing our estimate of all known assessments that will be levied against the Company's insurance subsidiaries by various state guaranty associations based on premiums written through December 31, 2023; and (ii) receivables of $9.5 million that we estimate will be recovered through a reduction in future premium taxes as a result of such assessments. At December 31, 2022, such guaranty fund assessment accruals were $6.2 million and such receivables were $10.6 million. These estimates are subject to change when the associations determine more precisely the losses that have occurred and how such losses will be allocated among the insurance companies. We recognized expense for such assessments of $2.0 million, $2.1 million and $2.7 million in 2023, 2022 and 2021, respectively. Guarantees In accordance with the terms of the employment agreements of two of the Company's former chief executive officers, certain wholly-owned subsidiaries of the Company are the guarantors of the former executives' nonqualified supplemental retirement benefits. The liability for such benefits was $19.8 million and $20.5 million at December 31, 2023 and 2022, respectively, and is included in the caption "Other liabilities" in the consolidated balance sheet. Leases and Certain Other Long-Term Commitments The Company leases office space, equipment and computer software under contractual commitments or noncancellable operating lease agreements. Total expense pursuant to these agreements was $96.3 million, $86.4 million and $76.3 million in 2023, 2022 and 2021, respectively. The Company leases office space for certain administrative operations under agreements that expire between 2024 and 2034. We lease sales offices in various states which are generally short-term in length with remaining lease terms expiring between 2024 and 2030. Many leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company's discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term only if the Company is reasonably certain of exercising those options. In determining the present value of lease payments, the Company uses its incremental borrowing rate for borrowings secured by collateral commensurate with the terms of the underlying lease. Information related to our right of use assets are as follows (dollars in millions): 2023 2022 Operating lease expense $ 26.3 $ 24.3 Cash paid for operating lease liability 23.8 25.5 Right of use assets obtained in exchange for lease liabilities (non-cash transactions) 62.4 21.7 Total right of use assets 85.3 46.6 Maturities of our operating lease liabilities as of December 31, 2023 are as follows (dollars in millions): 2024 $ 22.1 2025 16.8 2026 13.4 2027 10.3 2028 8.3 Thereafter 34.6 Total undiscounted lease payments 105.5 Less interest (14.8) Present value of lease liabilities $ 90.7 Weighted average remaining lease term (in years) 7.0 Weighted average discount rate 3.79 % |
AGENT DEFERRED COMPENSATION PLA
AGENT DEFERRED COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
AGENT DEFERRED COMPENSATION PLAN | AGENT DEFERRED COMPENSATION PLAN For our agent deferred compensation plan, it is our policy to immediately recognize changes in the actuarial benefit obligation resulting from either actual experience being different than expected or from changes in actuarial assumptions. One of our insurance subsidiaries has a noncontributory, unfunded deferred compensation plan for qualifying members of its exclusive agency force. Benefits were based on years of service and career earnings. In 2016, the agent deferred compensation plan was amended to: (i) freeze participation in the plan; (ii) freeze benefits accrued under the plan; and (iii) add a limited cashout feature. The actuarial measurement date of this deferred compensation plan is December 31. The liability recognized in the consolidated balance sheet for the agent deferred compensation plan was $130.9 million and $128.8 million at December 31, 2023 and 2022, respectively. Expenses incurred on this plan were $10.1 million, $(42.8) million and $(2.6) million during 2023, 2022 and 2021, respectively (including the recognition of gains (losses) of $(3.6) million, $48.9 million and $8.9 million in 2023, 2022 and 2021, respectively, primarily resulting from: (i) changes in the discount rate assumption used to determine the deferred compensation plan liability to reflect current investment yields; and (ii) changes in mortality table assumptions. We purchased COLI as an investment vehicle to fund the agent deferred compensation plan. The COLI assets are not assets of the agent deferred compensation plan, and as a result, are accounted for outside the plan and are recorded in the consolidated balance sheet as other invested assets. The carrying value of the COLI assets was $202.9 million and $199.1 million at December 31, 2023 and 2022, respectively. Death benefits related to COLI and changes in the cash surrender value (which approximates net realizable value) of the COLI assets are recorded as net investment income (loss) on special-purpose portfolios and totaled $13.0 million, $(4.4) million and $(2.7) million in 2023, 2022 and 2021, respectively. We used the following assumptions for the deferred compensation plan to calculate: 2023 2022 Benefit obligations: Discount rate 5.00 % 5.25 % Net periodic cost: Discount rate 5.25 % 2.75 % The discount rate is based on the yield of a hypothetical portfolio of high quality debt instruments which could effectively settle plan benefits on a present value basis as of the measurement date. The benefits expected to be paid pursuant to our agent deferred compensation plan as of December 31, 2023 were as follows (dollars in millions): 2024 $ 8.2 2025 8.5 2026 8.8 2027 8.9 2028 8.9 2029 - 2033 44.4 One of our insurance subsidiaries has another unfunded nonqualified deferred compensation program for qualifying members of its exclusive agency force. Such agents may defer a certain percentage of their net commissions into the program. In addition, annual Company contributions are made based on the agent's production and vest over a period of five The Company has a qualified defined contribution plan for which substantially all employees are eligible. Company contributions, which match a portion of certain voluntary employee contributions to the plan, totaled $10.9 million, $10.3 million and $6.7 million in 2023, 2022 and 2021, respectively. Employer matching contributions are discretionary. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Our freestanding and embedded derivatives, which are not designated as hedging instruments, are held at fair value and are summarized as follows (dollars in millions): Fair value 2023 2022 Assets: Other invested assets: Fixed indexed call options $ 239.2 $ 56.7 Reinsurance receivables (17.5) (17.8) Total assets $ 221.7 $ 38.9 Liabilities: Embedded derivatives related to fixed indexed annuities at fair value: Policyholder account balances $ 1,651.6 $ 1,788.4 Future policy benefits (274.9) (491.4) Total liabilities $ 1,376.7 $ 1,297.0 We are required to establish an embedded derivative related to a modified coinsurance agreement pursuant to which we assume the risks of a block of health insurance business. The embedded derivative represents the mark-to-market adjustment for approximately $83 million in underlying investments held by the ceding reinsurer at December 31, 2023. The activity associated with freestanding derivative instruments is measured as either the notional or the number of contracts. The activity associated with the fixed indexed annuity embedded derivatives are shown by the number of policies. The following table represents activity associated with derivative instruments as of the dates indicated: Measurement December 31, 2022 Additions Maturities/terminations December 31, 2023 Fixed indexed annuities - embedded derivative Policies 123,486 11,730 (9,918) 125,298 Fixed indexed call options Notional (a) $ 2,784.3 $ 3,320.9 $ (2,837.3) $ 3,267.9 _________________ (a) Dollars in millions. The following table provides the pre-tax impact recognized in net income for derivative instruments, which are not designated as hedges for the periods indicated (dollars in millions): 2023 2022 2021 Net investment income (loss) from policyholder and other special-purpose portfolios: Fixed indexed call options $ 129.0 $ (206.6) $ 220.9 Total investment gains (losses): Embedded derivative related to modified coinsurance agreement .3 (16.1) (3.1) Total revenues from derivative instruments, not designated as hedges 129.3 (222.7) 217.8 Insurance policy benefits: Embedded derivatives related to fixed indexed annuities 137.1 (488.5) (23.5) Net pre-tax impact $ (7.8) $ 265.8 $ 241.3 Derivative Counterparty Risk If the counterparties to the call options fail to meet their obligations, we may recognize a loss. We limit our exposure to such a loss by diversifying among several counterparties believed to be strong and creditworthy. At December 31, 2023, all of our counterparties were rated "A" or higher by S&P. The Company and its subsidiaries are parties to master netting arrangements with its counterparties related to entering into various derivative contracts. The following table summarizes information related to derivatives with master netting arrangements or collateral as of December 31, 2023 and 2022 (dollars in millions): Gross amounts not offset in the balance sheet Gross amounts recognized Gross amounts offset in the balance sheet Net amounts of assets presented in the balance sheet Non-cash collateral Cash collateral received Net amount December 31, 2023: Fixed indexed call options $ 239.2 $ — $ 239.2 $ 37.0 $ — $ 202.2 December 31, 2022: Fixed indexed call options 56.7 — 56.7 — — 56.7 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY In May 2011, the Company announced a securities repurchase program. In 2023, 2022 and 2021, we repurchased 6.6 million, 7.6 million and 16.6 million shares, respectively, for $165.1 million, $180.0 million and $402.4 million, respectively, under the securities repurchase program. The Company had remaining repurchase authority of $521.8 million as of December 31, 2023. In 2023, 2022 and 2021, dividends declared on common stock totaled $67.9 million ($0.59 per common share), $65.0 million ($0.55 per common share) and $66.1 million ($0.51 per common share), respectively. In May 2023, the Company increased its quarterly common stock dividend to $0.15 per share from $0.14 per share. In May 2022, the Company increased its quarterly common stock dividend to $0.14 per share from $0.13 per share. In May 2021, the Company increased its quarterly common stock dividend to $0.13 per share from $0.12 per share. The Company has a long-term incentive plan which permits the grant of CNO incentive or non-qualified stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance shares or units and certain other equity-based awards to certain directors, officers and employees of the Company and certain other individuals who perform services for the Company (although no grants have been made to such other individuals). As of December 31, 2023, 2022 and 2021, there were 4.1 million shares, 5.6 million shares and 7.8 million shares, respectively, that were available for issuance under the plan. Our stock option awards are generally granted with an exercise price equal to the market price of the Company's stock on the date of grant and a maximum term of ten years. Our stock options granted in 2015 through 2019 generally vested on a graded basis over a three year service term and expire ten years from the date of grant. In 2018, one grant of 1.6 million of stock options vested on a graded basis over a five year service term and expires ten years from the date of grant. There have been no stock options granted since 2019. The vesting periods for our awards of restricted stock units generally range from immediate vesting to a period of three years. A summary of the Company's stock option activity and related information for 2023 is presented below (shares in thousands; dollars in millions, except per share amounts): Shares Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding at the beginning of the year 2,736 $ 19.45 Options granted — — Exercised (484) (19.43) $ 2.9 Forfeited or terminated (67) (19.62) Outstanding at the end of the year 2,185 19.45 3.9 $ 11.8 Options exercisable at the end of the year 2,185 3.9 $ 11.8 A summary of the Company's stock option activity and related information for 2022 is presented below (shares in thousands; dollars in millions, except per share amounts): Shares Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding at the beginning of the year 3,411 $ 19.28 Options granted — — Exercised (618) (18.43) $ 3.8 Forfeited or terminated (57) (20.18) Outstanding at the end of the year 2,736 19.45 4.7 $ 15.1 Options exercisable at the end of the year 2,540 4.6 $ 14.1 A summary of the Company's stock option activity and related information for 2021 is presented below (shares in thousands; dollars in millions, except per share amounts): Shares Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding at the beginning of the year 4,544 $ 19.01 Options granted — — Exercised (1,023) (18.01) $ 7.8 Forfeited or terminated (110) (19.97) Outstanding at the end of the year 3,411 19.28 5.0 $ 19.2 Options exercisable at the end of the year 2,662 4.6 $ 15.7 We recognized compensation expense related to stock options totaling $0.3 million ($0.2 million after income taxes) in 2023, $0.9 million ($0.7 million after income taxes) in 2022 and $1.6 million ($1.3 million after income taxes) in 2021. Compensation expense related to stock options reduced both basic and diluted earnings per share by less than one cent in 2023 and by one cent in each of 2022 and 2021. At December 31, 2023, there was no unrecognized compensation expense for non-vested stock options. Cash received by the Company from the exercise of stock options was $9.2 million, $10.4 million and $18.4 million during 2023, 2022 and 2021, respectively. The following table summarizes information about stock options outstanding at December 31, 2023 (shares in thousands): Options outstanding Options exercisable Range of exercise prices Number outstanding Remaining life (in years) Average exercise price Number exercisable Average exercise price $15.08 - $21.06 1,925 3.9 $ 18.92 1,925 $ 18.92 $23.33 260 4.0 23.33 260 23.33 2,185 2,185 During 2023, 2022 and 2021, the Company granted restricted stock of 0.5 million, 0.5 million and 0.4 million, respectively, to certain directors, officers and employees of the Company at a weighted average fair value of $24.93 per share, $23.59 per share and $23.53 per share, respectively. The fair value of such grants totaled $11.5 million, $12.0 million and $10.5 million in 2023, 2022 and 2021, respectively. Such amounts are recognized as compensation expense over the vesting period of the restricted stock. A summary of the Company's non-vested restricted stock activity for 2023 is presented below (shares in thousands): Shares Weighted average grant date fair value Non-vested shares, beginning of year 1,023 $ 22.01 Granted 462 24.93 Vested (483) 21.87 Forfeited (14) 24.11 Non-vested shares, end of year 988 23.41 At December 31, 2023, the unrecognized compensation expense for non-vested restricted stock totaled $10.1 million which is expected to be recognized over a weighted average period of 1.8 years. At December 31, 2022, the unrecognized compensation expense for non-vested restricted stock totaled $9.8 million. We recognized compensation expense related to restricted stock awards totaling $10.9 million, $9.9 million and $9.0 million in 2023, 2022 and 2021, respectively. The fair value of restricted stock that vested during 2023, 2022 and 2021 was $10.4 million, $8.3 million and $8.4 million, respectively. In 2023, 2022 and 2021, the Company granted performance units totaling 0.4 million, 0.4 million and 0.4 million, respectively, pursuant to its long-term incentive plan to certain officers of the Company. The criteria for payment for such awards are based on certain company-wide performance levels that must be achieved within a specified performance time (generally one A summary of the Company's performance units is presented below (shares in thousands): Total shareholder return awards Operating return on equity awards Operating earnings per share awards Awards outstanding at December 31, 2020 339 581 239 Granted in 2021 — 209 209 Additional shares issued pursuant to achieving certain performance criteria (a) — 57 — Shares vested in 2021 (81) (178) — Forfeited (55) (34) (23) Awards outstanding at December 31, 2021 203 635 425 Granted in 2022 — 204 204 Additional shares issued pursuant to achieving certain performance criteria (a) 188 186 — Shares vested in 2022 (389) (390) — Forfeited — (24) (25) Awards outstanding at December 31, 2022 2 611 604 Granted in 2023 — 215 216 Additional shares issued pursuant to achieving certain performance criteria (a) — 221 221 Shares vested in 2023 (1) (443) (441) Forfeited — (9) (9) Awards outstanding at December 31, 2023 1 595 591 _________________________ (a) The performance units that vested in 2021, 2022 and 2023 provided for a payout of up to 200 percent of the award if certain performance levels were achieved. The grant date fair value of the performance units awarded was $11.9 million and $10.5 million in 2023 and 2022, respectively. We recognized compensation expense of $11.3 million, $13.8 million and $14.6 million in 2023, 2022 and 2021, respectively, related to the performance units. As further discussed in the footnote to the consolidated financial statements entitled "Income Taxes", the Company's Board of Directors adopted the Section 382 Rights Agreement in 2009 and has amended and extended the Section 382 Rights Agreement on five occasions, most recently effective November 13, 2023. The Section 382 Rights Agreement, as amended, is designed to protect shareholder value by preserving the value of our tax assets primarily associated with NOLs. At the time the Section 382 Rights Agreement was adopted, the Company declared a dividend of one preferred share purchase right (a "Right") for each outstanding share of common stock. The dividend was payable on January 30, 2009, to the shareholders of record as of the close of business on that date and a Right is also attached to each share of CNO common stock issued after that date. Pursuant to the Section 382 Rights Agreement, as amended, each Right entitles the shareholder to purchase from the Company one one-thousandth of a share of Series F Junior Participating Preferred Stock, par value $.01 per share (the "Junior Preferred Stock"), of the Company at a price of $110.00 per one one-thousandth of a share of Junior Preferred Stock. The description and terms of the Rights are set forth in the Section 382 Rights Agreement, as amended. The Rights would become exercisable in the event any person or group (subject to certain exemptions) becomes an owner of more than 4.99 percent of the outstanding stock of CNO (a "Threshold Holder") without the approval of the Board of Directors or an existing shareholder who is currently a Threshold Holder acquires additional shares exceeding one percent of our outstanding shares without prior approval from the Board of Directors. A reconciliation of net income and shares used to calculate basic and diluted earnings per share is as follows (dollars in millions and shares in thousands): 2023 2022 2021 Net income for basic earnings per share $ 276.5 $ 630.6 $ 570.3 Shares: Weighted average shares outstanding for basic earnings per share 113,275 115,733 128,400 Effect of dilutive securities on weighted average shares: Amounts related to employee benefit plans 1,849 1,984 2,726 Weighted average shares outstanding for diluted earnings per share 115,124 117,717 131,126 Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Restricted shares (including our performance units) are not included in basic earnings per share until vested. Diluted earnings per share reflect the potential dilution that could occur if outstanding stock options were exercised and restricted stock was vested. The dilution from options and restricted shares is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the average market price during the period, reducing the dilutive effect of the exercise of the options (or the vesting of the restricted stock and performance units). Accumulated other comprehensive income (loss) included in shareholders' equity as of December 31, 2023 and 2022, is comprised of the following (dollars in millions): 2023 2022 Net unrealized losses on investments having no allowance for credit losses $ (1,235.2) $ (1,247.0) Unrealized losses on investments with an allowance for credit losses (931.0) (1,780.7) Change in discount rates for liability for future policy benefits 133.4 500.7 Change in instrument-specific credit risk for market risk benefits 4.8 12.2 Deferred income tax assets 451.2 557.5 Accumulated other comprehensive loss $ (1,576.8) $ (1,957.3) |
OTHER OPERATING STATEMENT DATA
OTHER OPERATING STATEMENT DATA | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
OTHER OPERATING STATEMENT DATA | OTHER OPERATING STATEMENT DATA Insurance policy income consisted of the following (dollars in millions): 2023 2022 2021 Direct premiums collected (a) $ 4,574.9 $ 4,619.7 $ 4,457.7 Reinsurance assumed 16.6 18.6 20.7 Reinsurance ceded (194.6) (214.6) (231.3) Premiums collected, net of reinsurance 4,396.9 4,423.7 4,247.1 Change in unearned premiums 18.5 9.8 0.9 Less premiums on interest-sensitive life and products without mortality and morbidity risk which are recorded as additions to insurance liabilities (a) (2,111.7) (2,123.6) (1,905.2) Premiums on traditional products with mortality or morbidity risk 2,303.7 2,309.9 2,342.8 Fees and surrender charges on interest-sensitive products 201.8 189.9 180.6 Insurance policy income $ 2,505.5 $ 2,499.8 $ 2,523.4 ________________ (a) Excludes $899.0 million and $499.9 million in 2022 and 2021, respectively, of funds received from the issuance of funding agreements pursuant to our FABN program. The four states with the largest shares of 2023 collected premiums were Florida (11 percent), Pennsylvania (6 percent), Iowa (5 percent) and Texas (5 percent). No other state accounted for more than five percent of total collected premiums. Other operating costs and expenses were as follows (dollars in millions): 2023 2022 2021 Commission expense $ 111.1 $ 114.2 $ 110.9 Salaries and wages 290.9 287.9 267.9 Other 646.3 548.8 603.0 Total other operating costs and expenses $ 1,048.3 $ 950.9 $ 981.8 Changes in deferred acquisition costs were as follows (dollars in millions): 2023 Fixed indexed annuities Fixed interest annuities Supplemental health Medicare supplement Long-term care Interest-sensitive life Traditional life Funding agreements Total Beginning of period $ 365.6 $ 19.6 $ 378.8 $ 161.2 $ 137.9 $ 212.2 $ 409.1 $ 6.0 $ 1,690.4 Capitalizations 88.9 11.3 60.6 24.1 17.5 36.8 114.3 — 353.5 Amortization expense (46.9) (3.9) (31.4) (27.8) (15.1) (14.5) (51.5) (1.5) (192.6) End of period $ 407.6 $ 27.0 $ 408.0 $ 157.5 $ 140.3 $ 234.5 $ 471.9 $ 4.5 $ 1,851.3 2022 Fixed indexed annuities Fixed interest annuities Supplemental health Medicare supplement Long-term care Interest-sensitive life Traditional life Funding agreements Total Beginning of period $ 313.0 $ 19.0 $ 357.5 $ 170.2 $ 136.4 $ 196.3 $ 357.6 $ 3.3 $ 1,553.3 Capitalizations 92.8 4.1 50.5 20.7 16.8 29.8 94.6 4.2 313.5 Amortization expense (40.2) (3.5) (29.2) (29.7) (15.3) (13.9) (43.1) (1.5) (176.4) End of period $ 365.6 $ 19.6 $ 378.8 $ 161.2 $ 137.9 $ 212.2 $ 409.1 $ 6.0 $ 1,690.4 2021 Fixed indexed annuities Fixed interest annuities Supplemental health Medicare supplement Long-term care Interest-sensitive life Traditional life Funding agreements Total Beginning of period $ 266.0 $ 20.6 $ 339.0 $ 169.5 $ 133.4 $ 179.9 $ 318.0 $ — $ 1,426.4 Capitalizations 81.5 2.1 46.2 28.2 17.9 30.9 76.7 3.4 286.9 Amortization expense (34.5) (3.7) (27.7) (27.5) (14.9) (14.5) (37.1) (.1) (160.0) End of period $ 313.0 $ 19.0 $ 357.5 $ 170.2 $ 136.4 $ 196.3 $ 357.6 $ 3.3 $ 1,553.3 Changes in the present value of future profits were as follows (dollars in millions): 2023 Supplemental health Medicare supplement Long-term care Traditional life Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 154.0 $ 27.5 $ 6.2 $ 14.8 $ .8 $ .4 $ 203.7 Amortization expense (13.0) (6.9) (1.0) (1.9) (.1) (.1) (23.0) End of period $ 141.0 $ 20.6 $ 5.2 $ 12.9 $ .7 $ .3 $ 180.7 2022 Supplemental health Medicare supplement Long-term care Traditional life Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 168.1 $ 36.5 $ 7.3 $ 16.9 $ .9 $ .4 $ 230.1 Amortization expense (14.1) (9.0) (1.1) (2.1) (.1) — (26.4) End of period $ 154.0 $ 27.5 $ 6.2 $ 14.8 $ .8 $ .4 $ 203.7 2021 Supplemental health Medicare supplement Long-term care Traditional life Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 183.1 $ 47.0 $ 8.6 $ 19.3 $ 1.1 $ .5 $ 259.6 Amortization expense (15.0) (10.5) (1.3) (2.4) (.2) (.1) (29.5) End of period $ 168.1 $ 36.5 $ 7.3 $ 16.9 $ .9 $ .4 $ 230.1 Changes in sales inducements were as follows (dollars in millions): 2023 Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 76.0 $ 4.5 $ 80.5 Capitalizations 23.5 .9 24.4 Amortization expense (11.0) (.8) (11.8) End of period $ 88.5 $ 4.6 $ 93.1 2022 Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 63.0 $ 5.0 $ 68.0 Capitalizations 22.1 .4 22.5 Amortization expense (9.1) (.9) (10.0) End of period $ 76.0 $ 4.5 $ 80.5 2021 Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 53.6 $ 5.8 $ 59.4 Capitalizations 17.1 .2 17.3 Amortization expense (7.7) (1.0) (8.7) End of period $ 63.0 $ 5.0 $ 68.0 Based on current conditions and assumptions as to future events on all policies inforce, the Company expects to amortize approximately 11 percent of the December 31, 2023 balance of the present value of future profits in 2024, 10 percent in 2025, 9 percent in 2026, 8 percent in 2027 and 7 percent in 2028. |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
CONSOLIDATED STATEMENT OF CASH FLOWS | CONSOLIDATED STATEMENT OF CASH FLOWS The following disclosures supplement our consolidated statement of cash flows. The following reconciles net income to net cash provided by operating activities (dollars in millions): 2023 2022 2021 Cash flows from operating activities: Net income $ 276.5 $ 630.6 $ 570.3 Adjustments to reconcile net income to net cash from operating activities: Amortization and depreciation 267.4 248.5 236.6 Income taxes 21.1 152.0 182.6 Insurance liabilities 449.7 (374.7) 269.0 Accrual and amortization of investment income (170.7) 138.7 (347.6) Deferral of policy acquisition costs (377.9) (336.0) (304.2) Net investment (gains) losses 69.0 135.4 (19.1) Other (a) 47.8 (99.1) 10.7 Net cash from operating activities $ 582.9 $ 495.4 $ 598.3 _____________ (a) Primarily relates to: (i) changes in other assets and liabilities related to the timing of payments and receipts; and (ii) the change in fair value of the deferred compensation plan liability. Other non-cash items not reflected in the investing and financing activities sections of the consolidated statement of cash flows (dollars in millions): 2023 2022 2021 Stock options, restricted stock and performance units $ 23.3 $ 25.2 $ 26.0 |
STATUTORY INFORMATION (BASED ON
STATUTORY INFORMATION (BASED ON NON-GAAP MEASURES) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
STATUTORY INFORMATION (BASED ON NON-GAAP MEASURES) | STATUTORY INFORMATION (BASED ON NON-GAAP MEASURES) Statutory accounting practices prescribed or permitted by regulatory authorities for the Company's insurance subsidiaries differ from GAAP. The Company's U.S. based insurance subsidiaries reported the following amounts to regulatory agencies, after appropriate elimination of intercompany accounts among such subsidiaries (dollars in millions): 2023 2022 Statutory capital and surplus $ 1,558.9 $ 1,849.8 Asset valuation reserve 352.5 305.8 Interest maintenance reserve 368.1 395.7 Total $ 2,279.5 $ 2,551.3 Such statutory capital and surplus included investments in upstream affiliates of $42.6 million at both December 31, 2023 and 2022, which were eliminated in the consolidated financial statements prepared in accordance with GAAP. Statutory earnings build the capital required by ratings agencies and regulators. Statutory earnings, fees and interest paid by our U.S. based insurance subsidiaries to the parent company create the "cash flow capacity" the parent company needs to meet its obligations, including debt service. The consolidated statutory net income (a non-GAAP measure) of our U.S. based insurance subsidiaries was $105.0 million, $238.0 million and $277.5 million in 2023, 2022 and 2021, respectively. Included in net income were net realized capital losses, net of income taxes, of $26.3 million, $25.9 million and $11.2 million in 2023, 2022 and 2021, respectively. In addition, such net income included pre-tax amounts for fees and interest paid to CNO or its non-life subsidiaries totaling $190.1 million, $168.4 million and $164.2 million in 2023, 2022 and 2021, respectively. Insurance regulators may prohibit the payment of dividends or other payments by our insurance subsidiaries to parent companies if they determine that such payment could be adverse to our policyholders or contract holders. Otherwise, the ability of our insurance subsidiaries to pay dividends is subject to state insurance department regulations. Insurance regulations generally permit dividends to be paid from statutory earned surplus of our U.S. based insurance subsidiaries without regulatory approval for any 12-month period in amounts equal to the greater of (or in some states, the lesser of): (i) statutory net gain from operations or statutory net income for the prior year; or (ii) 10 percent of statutory capital and surplus as of the end of the preceding year. However, as each of the immediate U.S. based insurance subsidiaries of CDOC, Inc. ("CDOC", our wholly owned subsidiary and the immediate parent of Washington National and Conseco Life Insurance Company of Texas ("CLTX")) has negative earned surplus, any dividend payments from the insurance subsidiaries to CNO requires the prior approval of the director or commissioner of the applicable state insurance department. During 2023, our U.S. based insurance subsidiaries paid dividends of $526.5 million to CDOC. In 2023, CDOC contributed $265.0 million to CNO Bermuda Re, Ltd. ("CNO Bermuda Re"), a Bermuda reinsurance company wholly owned by CNO primarily in connection with an initial reinsurance transaction between CNO Bermuda Re and Bankers Life. In 2023, CDOC also made capital contributions of $34.4 million to CLTX. The payment of interest on surplus debentures requires either prior written notice or approval of the director or commissioner of the applicable state insurance department. Dividends and other payments from our non-insurance subsidiaries to CNO or CDOC do not require approval by any regulatory authority or other third party. In accordance with an order from the Florida Office of Insurance Regulation, Washington National may not distribute funds to any affiliate or shareholder, except pursuant to agreements that have been approved, without prior notice to the Florida Office of Insurance Regulation. In addition, the risk-based capital ("RBC") and other capital requirements described below can also limit, in certain circumstances, the ability of our insurance subsidiaries to pay dividends. RBC requirements provide a tool for state insurance regulators to determine the levels of statutory capital and surplus an insurer must maintain in relation to its insurance and investment risks and the need for possible regulatory attention. The RBC requirements provide four levels of regulatory attention, varying with the ratio of the insurance company's total adjusted capital (defined as the total of its statutory capital and surplus, asset valuation reserve and certain other adjustments) to its RBC (as measured on December 31 of each year) as follows: (i) if a company's total adjusted capital is less than 100 percent but greater than or equal to 75 percent of its RBC, the company must submit a comprehensive plan to the regulatory authority proposing corrective actions aimed at improving its capital position (the "Company Action Level"); (ii) if a company's total adjusted capital is less than 75 percent but greater than or equal to 50 percent of its RBC, the regulatory authority will perform a special examination of the company and issue an order specifying the corrective actions that must be taken; (iii) if a company's total adjusted capital is less than 50 percent but greater than or equal to 35 percent of its RBC, the regulatory authority may take any action it deems necessary, including placing the company under regulatory control; and (iv) if a company's total adjusted capital is less than 35 percent of its RBC, the regulatory authority must place the company under its control. In addition, the RBC requirements provide for a trend test if a company's total adjusted capital is between 100 percent and 150 percent of its RBC at the end of the year. The trend test calculates the greater of the decrease in the margin of total adjusted capital over RBC: (i) between the current year and the prior year; and (ii) for the average of the last 3 years. It assumes that such decrease could occur again in the coming year. Any company whose trended total adjusted capital is less than 95 percent of its RBC would trigger a requirement to submit a comprehensive plan as described above for the Company Action Level. The 2023 statutory annual statements of each of our U.S. based insurance subsidiaries reflect total adjusted capital in excess of the levels that would subject our subsidiaries to any regulatory action. In addition, although we are under no obligation to do so, we may elect to contribute additional capital or retain greater amounts of capital to strengthen the surplus of certain insurance subsidiaries. Any election to contribute or retain additional capital could impact the amounts our insurance subsidiaries pay as dividends to the holding company. The ability of our insurance subsidiaries to pay dividends is also impacted by various criteria established by rating agencies to maintain or receive higher ratings and by the capital levels that we target for our insurance subsidiaries. We calculate the consolidated RBC ratio by assuming all of the assets, liabilities, capital and surplus and other aspects of the business of our U.S. based insurance subsidiaries are combined together in one insurance subsidiary, with appropriate intercompany eliminations. CNO Bermuda Re is registered by and subject to the supervision of the Bermuda Monetary Authority (the "BMA") as a Class C insurer under the Bermuda Insurance Act 1978 and its related rules and regulations, each as amended (the "Insurance Act"). The Insurance Act imposes solvency and liquidity requirements as well as auditing and reporting requirements. The BMA measures an insurers risk and determines appropriate levels of capitalization by using a risk-based capital model called the Bermuda Solvency Capital Requirement ("BSCR"). The BSCR employs a standard mathematical model that correlates the risk underwritten by Bermuda insurers to their capital. We are currently completing the 2023 BSCR for CNO Bermuda Re and we believe we will exceed the BMA's target level of required statutory economic capital and surplus. The Insurance Act requires an insurer's statutory assets must exceed their statutory liabilities by an amount greater than or equal to their prescribed minimum solvency margin. The minimum solvency margin that must be maintained by a Class C insurer is the greater of: (i) $0.5 million; or (ii) 1.5 percent of assets; or (iii) 25 percent of its enhanced capital requirement ("ECR") as reported at the end of the relevant year. A Class C insurer is also required to maintain available statutory economic capital and surplus at a level equal to or in excess of its ECR, which is established by reference to either the BSCR model or a Bermuda-approved internal capital model. The BSCR model is a risk-based capital model which provides a method for determining an insurer’s capital requirements (statutory economic capital and surplus) by taking into account the risk characteristics of different aspects of the Class C insurer’s business. The BSCR formula establishes capital requirements for certain categories of risk, including: fixed income investment risk, equity investment risk, long-term interest rate/liquidity risk, currency risk, concentration risk, credit risk, catastrophe risk, and operational risk. For each category, the capital requirement is determined by applying factors to asset, premium, reserve, creditor, probable maximum loss and operation items, with higher factors applied to items with greater underlying risk and lower factors for less risky items. While not specifically referred to in the Insurance Act, the BMA has also established a target capital level ("TCL") for each insurer equal to 120 percent of its ECR. While qualifying insurers are not currently required to maintain its statutory capital and surplus at this level, the TCL serves as an early warning tool for the BMA and failure to maintain statutory capital at least equal to the TCL will likely result in increased regulatory oversight. CNO Bermuda Re has entered into a Capital and Liquidity Maintenance Agreement (the "CLMA") with CDOC. Pursuant to the CLMA, CDOC will contribute funds to CNO Bermuda Re in the event: (i) CNO Bermuda Re's statutory economic capital and surplus is less than 150 percent of its ECR at the end of any calendar quarter; or (ii) CNO Bermuda Re's liquid assets are insufficient to meet its contractual obligations to ceding insurers, in each case, unless Bankers Life has provided notice of recapture pursuant to the terms of a modified coinsurance agreement between it and CNO Bermuda Re. Further, CNO Bermuda Re may not pay any dividends or make any capital distributions to its parent and/or affiliates within the five years following its initial reinsurance transaction unless approved by the BMA. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We view our operations as three insurance product lines (annuity, health and life) and the investment and fee income segments. Our segments are aligned based on their common characteristics, comparability of profit margins and the way management makes operating decisions and assesses the performance of the business. Our insurance product line segments (annuity, health and life) include marketing, underwriting and administration of the policies our insurance subsidiaries sell. The business written in each of the three product categories through all of our insurance subsidiaries is aggregated allowing management and investors to assess the performance of each product category. When analyzing profitability of these segments, we use insurance product margin as the measure of profitability, which is: (i) insurance policy income; and (ii) net investment income allocated to the insurance product lines; less (i) insurance policy benefits and interest credited to policyholders; and (ii) amortization of deferred acquisition costs and present value of future profits, non-deferred commissions and advertising expense. Net investment income is allocated to the product lines using the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period. Net insurance liabilities for the purpose of allocating investment income to product lines are equal to: (i) policyholder account balances for annuity products; (ii) total reserves before the fair value adjustments reflected in accumulated other comprehensive income (loss), if applicable, for all other products; less (iii) amounts related to reinsurance business; (iv) deferred acquisition costs; (v) the present value of future profits; and (vi) the value of unexpired options credited to insurance liabilities. Income from insurance products is the sum of the insurance product margins of the annuity, health and life product lines, less expenses allocated to the insurance lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes insurance product margin and income from insurance products help provide a better understanding of the business and a more meaningful analysis of the results of our insurance product lines. We market our products through the Consumer and Worksite Divisions that reflect the customers served by the Company. The Consumer and Worksite Divisions are primarily focused on marketing insurance products, several types of which are sold in both divisions and underwritten in the same manner. The Consumer Division serves individual consumers, engaging with them on the phone, virtually, online, face-to-face with agents, or through a combination of sales channels. This structure unifies consumer capabilities into a single division and integrates the strength of our agent sales forces with one of the largest direct-to-consumer insurance businesses with proven experience in advertising, web/digital and call center support. The Worksite Division focuses on the sale of voluntary benefit life and health insurance products in the workplace for businesses, associations, and other membership groups, interacting with customers at their place of employment and virtually. With a separate Worksite Division, we are bringing a sharper focus to this high-growth business while further capitalizing on the strength of our wholly-owned subsidiary, Optavise, a national provider of year-round technology-driven employee benefits management services. The investment segment involves the management of our capital resources, including investments and the management of corporate debt and liquidity. Our measure of profitability of this segment is the total net investment income not allocated to the insurance products. Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable, investment borrowings and financing agreements; (iv) expenses related to the FABN program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our FHLB investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from COLI and alternative investments income not allocated to product lines), net of interest expense on corporate debt and financing agreements. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the matched assets less: (i) interest on investment borrowings related to the FHLB investment borrowing program; (ii) interest credited on funding agreements; and (iii) amortization of deferred acquisition costs related to the FABN program. Our fee income segment includes the earnings generated from sales of third-party insurance products, services provided by Optavise and the operations of our broker/dealer and registered investment advisor. Expenses not allocated to product lines include the expenses of our corporate operations, excluding interest expense on debt. We measure segment performance by excluding total investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan, income taxes and other non-operating items consisting primarily of earnings attributable to VIEs ("pre-tax operating earnings") because we believe that this performance measure is a better indicator of the ongoing business and trends in our business. Our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of investment gains (losses), and a long-term focus is necessary to maintain profitability over the life of the business. Investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan and other non-operating items consisting primarily of earnings attributable to VIEs depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments. Investment gains (losses) and changes in fair value of embedded derivative liabilities and MRBs may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business. Operating information by segment is as follows (dollars in millions): 2023 2022 2021 Revenues: Annuity: Insurance policy income $ 28.4 $ 23.1 $ 19.6 Net investment income 516.3 480.0 468.9 Total annuity revenues 544.7 503.1 488.5 Health: Insurance policy income 1,594.6 1,617.3 1,661.5 Net investment income 296.7 293.3 293.5 Total health revenues 1,891.3 1,910.6 1,955.0 Life: Insurance policy income 882.5 859.4 842.3 Net investment income 144.8 141.9 143.2 Total life revenues 1,027.3 1,001.3 985.5 Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances) 131.5 (205.3) 219.8 Investment income not allocated to product lines 335.6 257.5 264.8 Fee revenue and other income: Fee revenue 177.6 169.3 147.6 Amounts netted in expenses not allocated to product lines 36.6 30.5 14.9 Total segment revenues $ 4,144.6 $ 3,667.0 $ 4,076.1 (continued on next page) (continued from previous page) 2023 2022 2021 Expenses: Annuity: Insurance policy benefits $ 29.0 $ 38.3 $ 28.4 Interest credited 209.4 175.5 162.9 Amortization and non-deferred commissions 71.3 62.4 54.0 Total annuity expenses 309.7 276.2 245.3 Health: Insurance policy benefits 1,234.9 1,237.5 1,289.1 Amortization and non-deferred commissions 162.1 168.7 168.3 Total health expenses 1,397.0 1,406.2 1,457.4 Life: Insurance policy benefits 570.0 575.3 567.5 Interest credited 49.3 49.0 45.8 Amortization, non-deferred commissions and advertising expense 178.3 171.8 159.6 Total life expenses 797.6 796.1 772.9 Allocated expenses 599.0 596.6 566.5 Expenses not allocated to product lines 88.3 71.3 95.4 Market value changes of options credited to fixed indexed annuity and life policyholders 131.5 (205.3) 219.8 Amounts netted in investment income not allocated to product lines: Interest expense 169.8 96.0 72.2 Interest credited 28.8 28.5 2.2 Impact of annual option forfeitures related to fixed indexed annuity surrenders (7.1) 1.0 (15.2) Amortization 1.6 1.5 .1 Other expenses 22.3 (13.4) 16.6 Expenses netted in fee revenue: Commissions and other operating expenses 146.6 145.6 128.2 Total segment expenses 3,685.1 3,200.3 3,561.4 Pre-tax measure of profitability: Annuity margin 235.0 226.9 243.2 Health margin 494.3 504.4 497.6 Life margin 229.7 205.2 212.6 Total insurance product margin 959.0 936.5 953.4 Allocated expenses (599.0) (596.6) (566.5) Income from insurance products 360.0 339.9 386.9 Fee income 31.0 23.7 19.4 Investment income not allocated to product lines 120.2 143.9 188.9 Expenses not allocated to product lines (51.7) (40.8) (80.5) Operating earnings before taxes 459.5 466.7 514.7 Income tax expense on operating income 103.4 106.3 114.3 Net operating income $ 356.1 $ 360.4 $ 400.4 A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions): 2023 2022 2021 Total segment revenues $ 4,144.6 $ 3,667.0 $ 4,076.1 Total investment gains (losses) (69.0) (135.4) 19.1 Revenues related to earnings attributable to VIEs 71.2 45.2 27.0 Consolidated revenues 4,146.8 3,576.8 4,122.2 Total segment expenses 3,685.1 3,200.3 3,561.4 Insurance policy benefits - fair value changes in embedded derivative liabilities 29.9 (440.2) (186.8) Expenses attributable to VIEs 70.5 43.0 24.4 Fair value changes related to agent deferred compensation plan 3.5 (48.9) (8.9) Other expenses 1.0 6.1 (1.0) Consolidated expenses 3,790.0 2,760.3 3,389.1 Income before tax 356.8 816.5 733.1 Income tax expense 80.3 185.9 162.8 Net income $ 276.5 $ 630.6 $ 570.3 Segment balance sheet information was as follows (dollars in millions): 2023 2022 Assets: Annuity $ 12,081.9 $ 10,971.3 Health 9,512.5 9,019.9 Life 4,153.9 3,784.5 Investments not allocated to product lines 8,711.5 8,856.8 Assets of our non-life companies included in the fee income segment 243.9 207.7 Assets of our other non-life companies 398.8 292.9 Total assets $ 35,102.5 $ 33,133.1 Liabilities: Annuity $ 12,935.2 $ 12,251.0 Health 9,866.9 9,556.4 Life 4,294.6 4,031.7 Liabilities associated with investments not allocated to product lines (a) 5,561.6 5,293.8 Liabilities of our non-life companies included in the fee income segment 35.2 23.5 Liabilities of our other non-life companies 193.4 207.9 Total liabilities $ 32,886.9 $ 31,364.3 ____________ (a) Includes investment borrowings, policyholder account balances related to funding agreements, borrowings related to VIEs and notes payable - direct corporate obligations. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) We compute earnings per common share for each quarter independently of earnings per share for the year. The sum of the quarterly earnings per share may not equal the earnings per share for the year because of: (i) transactions affecting the weighted average number of shares outstanding in each quarter; and (ii) the uneven distribution of earnings during the year. Quarterly financial data (unaudited) were as follows (dollars in millions, except per share data): 2023 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenues $ 1,006.0 $ 1,022.8 $ 947.5 $ 1,170.5 Income (loss) before income taxes $ (1.0) $ 96.1 $ 215.6 $ 46.1 Income tax expense (benefit) (.2) 22.4 48.3 9.8 Net income (loss) $ (.8) $ 73.7 $ 167.3 $ 36.3 Earnings per common share: Basic: Net income (loss) $ (.01) $ .64 $ 1.48 $ .33 Diluted: Net income (loss) $ (.01) $ .64 $ 1.46 $ .32 2022 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenues $ 842.9 $ 855.0 $ 905.3 $ 973.6 Income before income taxes $ 240.3 $ 299.8 $ 227.9 $ 48.5 Income tax expense 56.9 66.5 52.0 10.5 Net income $ 183.4 $ 233.3 $ 175.9 $ 38.0 Earnings per common share: Basic: Net income $ 1.55 $ 2.02 $ 1.54 $ .33 Diluted: Net income $ 1.52 $ 1.99 $ 1.52 $ .33 |
INVESTMENTS IN VARIABLE INTERES
INVESTMENTS IN VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INVESTMENTS IN VARIABLE INTEREST ENTITIES | INVESTMENTS IN VARIABLE INTEREST ENTITIES We have concluded that we are the primary beneficiary with respect to certain VIEs, which are consolidated in our financial statements. In consolidating the VIEs, we consistently use the financial information most recently distributed to investors in the VIE. All of the VIEs are collateralized loan trusts that were established to issue securities to finance the purchase of corporate loans and other permitted investments. The assets held by the trusts are legally isolated and not available to the Company. The liabilities of the VIEs are expected to be satisfied from the cash flows generated by the underlying loans held by the trusts, not from the assets of the Company. The scheduled repayment of the remaining principal balance of the borrowings related to the VIEs are estimated as follows: $338.8 million in 2024; $158.9 million in 2025; $124.9 million in 2026; $89.0 million in 2027; $95.4 million in 2028; and $14.9 million in 2029. The Company has no financial obligation to the VIEs beyond its investment in each VIE. Certain of our subsidiaries are noteholders of the VIEs. Another subsidiary of the Company is the investment manager for the VIEs. As such, it has the power to direct the most significant activities of the VIEs which materially impacts the economic performance of the VIEs. The following table provides supplemental information about the assets and liabilities of the VIEs which have been consolidated (dollars in millions): December 31, 2023 VIEs Eliminations Net effect on Assets: Investments held by variable interest entities $ 768.6 $ — $ 768.6 Notes receivable of VIEs held by subsidiaries — (113.8) (113.8) Cash and cash equivalents held by variable interest entities 114.5 — 114.5 Accrued investment income 2.7 — 2.7 Income tax assets, net 13.0 — 13.0 Other assets — (.7) (.7) Total assets $ 898.8 $ (114.5) $ 784.3 Liabilities: Other liabilities $ 14.6 $ (2.2) $ 12.4 Borrowings related to variable interest entities 820.8 — 820.8 Notes payable of VIEs held by subsidiaries 126.1 (126.1) — Total liabilities $ 961.5 $ (128.3) $ 833.2 December 31, 2022 VIEs Eliminations Net effect on Assets: Investments held by variable interest entities $ 1,077.6 $ — $ 1,077.6 Notes receivable of VIEs held by subsidiaries — (113.8) (113.8) Cash and cash equivalents held by variable interest entities 69.2 — 69.2 Accrued investment income 3.5 — 3.5 Income tax assets, net 19.6 — 19.6 Other assets 2.5 (.8) 1.7 Total assets $ 1,172.4 $ (114.6) $ 1,057.8 Liabilities: Other liabilities $ 29.3 $ (2.4) $ 26.9 Borrowings related to variable interest entities 1,104.6 — 1,104.6 Notes payable of VIEs held by subsidiaries 126.1 (126.1) — Total liabilities $ 1,260.0 $ (128.5) $ 1,131.5 The following table provides supplemental information about the revenues and expenses of the VIEs which have been consolidated in accordance with authoritative guidance, after giving effect to the elimination of our investment in the VIEs and investment management fees earned by a subsidiary of the Company (dollars in millions): 2023 2022 2021 Revenues: Net investment income – policyholder and other special-purpose portfolios $ 85.2 $ 60.1 $ 45.6 Fee revenue and other income 4.4 5.3 5.2 Total revenues 89.6 65.4 50.8 Expenses: Interest expense 68.7 41.0 23.2 Other operating expenses 1.8 2.0 1.2 Total expenses 70.5 43.0 24.4 Income before net investment gains (losses) and income taxes 19.1 22.4 26.4 Net investment gains (losses) (4.4) (8.1) 3.6 Income before income taxes $ 14.7 $ 14.3 $ 30.0 The investment portfolios held by the VIEs are primarily comprised of commercial bank loans to corporate obligors. At December 31, 2023, the amortized cost of the below-investment grade investments held by the VIEs was $764.4 million, or 97 percent of the VIEs investment portfolio. At December 31, 2023, such loans had an amortized cost of $787.6 million; gross unrealized gains of $2.5 million; gross unrealized losses of $18.4 million; an allowance for credit losses of $3.1 million; and an estimated fair value of $768.6 million. The estimated fair value of the below-investment grade portfolio was $745.3 million, or 98 percent of the amortized cost. The following table summarizes changes in the allowance for credit losses related to investments held by VIEs for the three years ended December 31, 2023 (dollars in millions): Corporate securities Allowance at December 31, 2020 $ 15.1 Additions for securities for which credit losses were not previously recorded 1.3 Additions (reductions) for securities where an allowance was previously recorded (2.9) Reduction for securities sold during the period (9.8) Allowance at December 31, 2021 3.7 Additions for securities for which credit losses were not previously recorded 7.8 Additions (reductions) for securities where an allowance was previously recorded (3.0) Reduction for securities sold during the period (3.0) Allowance at December 31, 2022 5.5 Additions for securities for which credit losses were not previously recorded .8 Additions (reductions) for securities where an allowance was previously recorded (.3) Reduction for securities sold during the period (2.9) Allowance at December 31, 2023 $ 3.1 The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Estimated (Dollars in millions) Due in one year or less $ 2.0 $ 2.0 Due after one year through five years 746.0 727.0 Due after five years through ten years 39.6 39.6 Total $ 787.6 $ 768.6 The following table sets forth the amortized cost and estimated fair value of those investments held by the VIEs with unrealized losses at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Estimated (Dollars in millions) Due in one year or less $ .8 $ .8 Due after one year through five years 421.8 400.6 Due after five years through ten years 14.0 13.7 Total $ 436.6 $ 415.1 The following summarizes the investments sold at a loss during 2023 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions): At date of sale Number Amortized cost Fair value Less than 6 months prior to sale 3 $ 3.7 $ 2.6 Greater than or equal to 6 months and less than 12 months prior to sale 2 4.9 1.8 Greater than 12 months prior to sale 1 3.5 1.0 $ 12.1 $ 5.4 The following summarizes the investments held by the VIEs rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2023 (dollars in millions): Number Cost Unrealized Estimated Less than 6 months 2 $ 7.3 $ (1.7) $ 5.6 Greater than or equal to 6 months and less than 12 months 1 1.1 (.3) .8 Greater than 12 months 1 1.9 (.6) 1.3 Total $ 10.3 $ (2.6) $ 7.7 During 2023, the VIEs recognized net investment losses of $4.4 million which were comprised of: (i) $6.8 million of net losses from the sales of fixed maturities; and (ii) a $2.4 million decrease in the allowance for credit losses. Such net investment losses included gross realized losses of $6.9 million from the sale of $18.5 million of investments. During 2022, the VIEs recognized net investment losses of $8.1 million which were comprised of: (i) $6.3 million of net losses from the sales of fixed maturities; and (ii) a $1.8 million increase in the allowance for credit losses. Such net investment losses included gross realized losses of $6.3 million from the sale of $69.2 million of investments. During 2021, the VIEs recognized net investment gains of $3.6 million which were comprised of: (i) $7.8 million of net losses from the sales of fixed maturities; and (ii) an $11.4 million decrease in the allowance for credit losses. Such net investment losses included gross realized losses of $8.1 million from the sale of $70.0 million of investments. At December 31, 2023, there were no fixed maturity investments held by the VIEs in default. At December 31, 2023, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $24.8 million and gross unrealized losses of $0.1 million that had been in an unrealized loss position for less than twelve months; and (ii) investments (for which an allowance for credit losses has not been recorded) with a fair value of $302.3 million and gross unrealized losses of $8.7 million that had been in an unrealized loss position for greater than twelve months. At December 31, 2022, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $392.2 million and gross unrealized losses of $14.2 million that had been in an unrealized loss position for less than twelve months; and (ii) investments (for which an allowance for credit losses has not been recorded) with a fair value of $477.9 million and gross unrealized losses of $17.3 million that had been in an unrealized loss position for greater than twelve months. The investments held by the VIEs are evaluated for impairment in a manner that is consistent with the Company's fixed maturities, available for sale. |
SCHEDULE II - Condensed Financi
SCHEDULE II - Condensed Financial Information of Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II - Condensed Financial Information of Registrant (Parent Company) | SCHEDULE II Condensed Financial Information of Registrant (Parent Company) Balance Sheet as of December 31, 2023 and 2022 (Dollars in millions) ASSETS 2023 2022 Cash and cash equivalents - unrestricted $ 255.3 $ 136.7 Equity securities at fair value — 36.6 Investment in wholly-owned subsidiaries (eliminated in consolidation) 3,169.3 2,660.4 Income tax assets, net 124.4 154.9 Receivable from subsidiaries (eliminated in consolidation) 26.7 114.9 Other assets 2.4 2.2 Total assets $ 3,578.1 $ 3,105.7 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable $ 1,140.5 $ 1,138.8 Payable to subsidiaries (eliminated in consolidation) 174.0 172.0 Other liabilities 48.0 26.1 Total liabilities 1,362.5 1,336.9 Commitments and Contingencies Shareholders' equity: Common stock and additional paid-in capital ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: 2023 - 109,357,540; 2022 - 114,343,070) 1,892.6 2,034.9 Accumulated other comprehensive loss (1,576.8) (1,957.3) Retained earnings 1,899.8 1,691.2 Total shareholders' equity 2,215.6 1,768.8 Total liabilities and shareholders' equity $ 3,578.1 $ 3,105.7 SCHEDULE II Condensed Financial Information of Registrant (Parent Company) Statement of Operations for the years ended December 31, 2023, 2022 and 2021 (Dollars in millions) 2023 2022 2021 Revenues: Net investment income $ 13.3 $ 9.8 $ 7.4 Net investment income - affiliated 3.7 3.0 .3 Net investment gains (losses) .1 (.6) (.2) Total revenues 17.1 12.2 7.5 Expenses: Interest expense 62.7 62.5 62.4 Intercompany expenses (eliminated in consolidation) 8.4 3.8 .5 Operating costs and expenses 63.2 .2 38.5 Total expenses 134.3 66.5 101.4 Loss before income taxes and equity in undistributed earnings of subsidiaries (117.2) (54.3) (93.9) Income tax benefit (32.2) (18.3) (26.0) Loss before equity in undistributed earnings of subsidiaries (85.0) (36.0) (67.9) Equity in undistributed earnings of subsidiaries (eliminated in consolidation) 361.5 666.6 638.2 Net income $ 276.5 $ 630.6 $ 570.3 The accompanying notes are an integral part of the condensed financial statements. CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES SCHEDULE II Condensed Financial Information of Registrant (Parent Company) Statement of Cash Flows for the years ended December 31, 2023, 2022 and 2021 (Dollars in millions) 2023 2022 2021 Cash flows from operating activities $ (106.8) $ (143.2) $ (153.2) Cash flows from investing activities: Sales of investments 43.2 24.6 — Purchases of investments (6.5) (11.8) (50.0) Net sales of trading securities 6.6 7.7 8.4 Dividends received from consolidated subsidiary* 150.0 69.6 328.3 Net cash provided by investing activities 193.3 90.1 286.7 Cash flows from financing activities: Issuance of common stock 13.2 13.5 21.5 Payments to repurchase common stock (166.1) (190.1) (407.8) Common stock dividends paid (68.1) (64.8) (65.7) Issuance of notes payable to affiliates* 400.3 349.5 249.7 Payments on notes payable to affiliates* (147.2) (114.5) (125.3) Debt issuance costs — — (1.0) Net cash provided (used) by financing activities 32.1 (6.4) (328.6) Net increase (decrease) in cash and cash equivalents 118.6 (59.5) (195.1) Cash and cash equivalents, beginning of the year 136.7 196.2 391.3 Cash and cash equivalents, end of the year $ 255.3 $ 136.7 $ 196.2 * Eliminated in consolidation The accompanying notes are an integral part of the condensed financial statements. CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES SCHEDULE II Notes to Condensed Financial Information The condensed financial information should be read in conjunction with the consolidated financial statements of CNO Financial Group, Inc. The condensed financial information includes the accounts and activity of the parent company. |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV Reinsurance for the years ended December 31, 2023, 2022 and 2021 (Dollars in millions) 2023 2022 2021 Life insurance inforce: Direct $ 31,335.5 $ 30,444.8 $ 29,954.0 Assumed 82.0 86.5 93.8 Ceded (2,804.9) (2,820.0) (2,930.8) Net insurance inforce $ 28,612.6 $ 27,711.3 $ 27,117.0 Percentage of assumed to net .3 % .3 % .3 % 2023 2022 2021 Insurance policy income: Direct $ 2,468.5 $ 2,483.1 $ 2,530.5 Assumed 16.6 18.7 20.3 Ceded (181.4) (191.9) (208.0) Net premiums $ 2,303.7 $ 2,309.9 $ 2,342.8 Percentage of assumed to net .7 % .8 % .9 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net income | $ 36.3 | $ 167.3 | $ 73.7 | $ (0.8) | $ 38 | $ 175.9 | $ 233.3 | $ 183.4 | $ 276.5 | $ 630.6 | $ 570.3 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the fourth quarter of 2023, certain officers (as defined in Rule 16a-1(f) of the Exchange Act) (the "Section 16 officers") of the Company adopted separate Rule 10b5-1 trading arrangements (as defined in Item 408(a) of Regulation S-K) for the sale of the Company's common stock. The following summarizes the material terms of such Rule 10b5-1 trading arrangements: Name and title of officer Date of trading arrangement Duration of trading arrangement (a) Aggregate shares of common stock to be sold pursuant to the trading arrangement Gary C. Bhojwani December 19, 2023 February 1, 2025 83,512 – Chief Executive Officer Karen J. DeToro December 20, 2023 December 18, 2024 8,033 – President Worksite Division Yvonne K. Franzese December 21, 2023 September 20, 2024 24,794 – Chief Human Resources Officer Scott L. Goldberg November 14, 2023 September 1, 2024 35,584 – President Consumer Division Paul H. McDonough November 17, 2023 September 4, 2024 35,714 – Chief Financial Officer Rocco F. Tarasi December 19, 2023 March 1, 2025 10,000 – Chief Marketing Officer _________ (a) Or such earlier date that the aggregate amount of shares has been sold. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Gary C. Bhojwani [Member] | ||
Trading Arrangements, by Individual | ||
Name | Gary C. Bhojwani | |
Title | –Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 19, 2023 | |
Arrangement Duration | 410 days | |
Aggregate Available | 83,512 | 83,512 |
Karen J. DeToro [Member] | ||
Trading Arrangements, by Individual | ||
Name | Karen J. DeToro | |
Title | –President Worksite Division | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 20, 2023 | |
Arrangement Duration | 364 days | |
Aggregate Available | 8,033 | 8,033 |
Yvonne K. Franzese [Member] | ||
Trading Arrangements, by Individual | ||
Name | Yvonne K. Franzese | |
Title | –Chief Human Resources Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 21, 2023 | |
Arrangement Duration | 274 days | |
Aggregate Available | 24,794 | 24,794 |
Scott L. Goldberg [Member] | ||
Trading Arrangements, by Individual | ||
Name | Scott L. Goldberg | |
Title | –President Consumer Division | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 14, 2023 | |
Arrangement Duration | 292 days | |
Aggregate Available | 35,584 | 35,584 |
Paul H. McDonough [Member] | ||
Trading Arrangements, by Individual | ||
Name | Paul H. McDonough | |
Title | –Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 17, 2023 | |
Arrangement Duration | 292 days | |
Aggregate Available | 35,714 | 35,714 |
Rocco F. Tarasi [Member] | ||
Trading Arrangements, by Individual | ||
Name | Rocco F. Tarasi | |
Title | –Chief Marketing Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 19, 2023 | |
Arrangement Duration | 438 days | |
Aggregate Available | 10,000 | 10,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Adopted Accounting Standards and Recently Issued Accounting Standards | Effective January 1, 2023, we adopted Accounting Standards Update 2018-12 ("ASU 2018-12") related to targeted improvements to the accounting for long-duration insurance contracts, with a transition date of January 1, 2021 (the "Transition Date"). The adoption of ASU 2018-12 impacted accounting and presentation related to long-duration insurance contracts and certain related balances for the years ended December 31, 2022 and 2021. Amounts within these financial statements, which were previously presented, have been recast to conform with the current accounting and presentation under ASU 2018-12. Disclosures of the impacts of ASU 2018-12 as of the Transition Date are included within the tables in the note to the consolidated financial statements entitled "Summary of Significant Accounting Policies - Adopted Accounting Standards." We adopted ASU 2018-12 effective January 1, 2023. The new guidance: (i) improves the timeliness of recognizing changes in the liability for future benefits and modifies the rate used to discount future cash flows; (ii) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts; (iii) simplifies the amortization of deferred acquisition costs; and (iv) requires enhanced disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account liabilities, MRBs and deferred acquisition costs. Additionally, qualitative and quantitative information about expected cash flows, estimates and assumptions is required. The new measurement guidance for traditional and limited-payment contract liabilities and the new guidance for the amortization of deferred acquisition costs was adopted on a modified retrospective transition approach. For contracts in-force at the Transition Date, we continue to use the existing locked-in investment yield interest rate assumption to calculate the net premium ratio, rather than the upper-medium grade fixed-income corporate instrument yield. However, for balance sheet remeasurement purposes, the current upper-medium grade fixed-income corporate instrument yield is used at transition through accumulated other comprehensive income (loss) and subsequently through other comprehensive income. For MRBs, we used the required retrospective application and were able to use actual assumption information to measure fair value components to the extent assumptions in a prior period were unobservable or otherwise unavailable. In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. Such requirements include: (i) disclosures on significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss on an annual and interim basis; (ii) disclosures of an amount for other segment items by reportable segment and a description of its composition on an annual and interim basis (the other segment items category is the difference between segment revenues less the segment expenses disclosed pursuant to the new guidance); (iii) providing all annual disclosures on a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting in interim periods; and (iv) specifying the title and position of the CODM and an explanation of how the CODM uses the reported measures to assess segment performance and make decisions about allocating resources. ASU 2023-07 is effective for annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025, to be applied on a retrospective basis (with early adoption permitted). The adoption of ASU 2023-07 will expand our disclosures but will not have an impact on our financial position or results of operations. In December 2023, the FASB issued Accounting Standards Update 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 is intended to improve the effectiveness of income tax disclosures by requiring, among other things, the disclosure on an annual basis of: (i) specific categories in the rate reconciliation; and (ii) additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires disclosure (on an annual basis) of the following information about income taxes paid: (i) the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes; and (ii) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). ASU 2023-09 is effective for annual periods beginning January 1, 2025, to be applied prospectively with an option for retrospective application (with early adoption permitted). The adoption of ASU 2023-09 will modify our disclosures but will not have an impact on our financial position or results of operations. |
Basis of Accounting | When we prepare financial statements in conformity with GAAP, we are required to make estimates and assumptions that significantly affect reported amounts of various assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting periods. For example, we use significant estimates and assumptions to calculate values for deferred acquisition costs, the present value of future profits, fair value measurements of certain investments (including derivatives), allowance for credit losses and other-than-temporary impairments of investments, assets and liabilities related to income taxes, liabilities for insurance products, liabilities related to litigation and guaranty fund assessment accruals. If our future experience differs from these estimates and assumptions, our financial statements could be materially affected. |
Consolidation | The accompanying financial statements include the accounts of the Company and its subsidiaries. Our consolidated financial statements exclude transactions between us and our consolidated affiliates, or among our consolidated affiliates. |
Investments | Investments Fixed maturity securities include available for sale bonds and redeemable preferred stocks. We carry these investments at estimated fair value. We record any unrealized gain or loss, net of tax and related adjustments, as a component of shareholders’ equity. Equity securities include investments in common stock, exchange-traded funds and non-redeemable preferred stock. We carry these investments at estimated fair value. Changes in the fair value of equity securities are recognized in net income. Mortgage loans held in our investment portfolio are carried at amortized unpaid balance, net of allowance for estimated credit losses. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Payment terms specified for mortgage loans may include a prepayment penalty for unscheduled payoff of the investment. Prepayment penalties are recognized as investment income when received. The allowance for estimated credit losses is measured using a loss-rate method on an individual asset basis. Inputs used include asset-specific characteristics, current economic conditions, historical loss information and reasonable and supportable forecasts about future economic conditions. Policy loans are stated at current unpaid principal balances. Policy loans are collateralized by the cash surrender value of the life insurance policy. Interest income is recorded as earned using the contractual interest rate. Trading securities include: (i) investments purchased with the intent of selling in the near term to generate income; and (ii) certain fixed maturity securities containing embedded derivatives for which we have elected the fair value option. The change in fair value of the income generating investments is recognized in income from policyholder and other special-purpose portfolios (a component of net investment income). The change in fair value of securities with embedded derivatives is recognized in other investment gains (losses). Other invested assets include: (i) call options purchased in an effort to offset or hedge the effects of certain policyholder benefits related to our fixed indexed annuity and life insurance products; (ii) Company-owned life insurance ("COLI"); (iii) investments in the common stock of the Federal Home Loan Bank ("FHLB"); and (iv) certain non-traditional investments. We carry the call options at estimated fair value as further described in the section of this note entitled "Accounting for Derivatives". We carry COLI at its cash surrender value which approximates its net realizable value. Non-traditional investments include investments in certain limited partnerships and hedge funds which are accounted for using the equity method. In accounting for limited partnerships and hedge funds, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is generally three months prior to the end of our reporting period. Interest income on fixed maturity securities is recognized when earned using a constant effective yield method giving effect to amortization of premiums and accretion of discounts. Prepayment fees are recognized when earned. Dividends on equity securities are recognized on the ex-dividend date. When we sell a security (other than trading securities), we report the difference between the sale proceeds and amortized cost (determined based on specific identification) as a realized investment gain or loss. When an available for sale fixed maturity security's fair value is below the amortized cost, the security is considered impaired. If a portion of the decline is due to credit-related factors, we separate the credit loss component of the impairment from the amount related to all other factors. The credit loss component is recorded as an allowance and reported in other investment gains (losses) (limited to the difference between estimated fair value and amortized cost). The impairment related to all other factors (non-credit factors) is reported in accumulated other comprehensive income along with unrealized gains related to fixed maturity investments, available for sale, net of tax and related adjustments. The allowance is adjusted for any additional credit losses and subsequent recoveries. When recognizing an allowance associated with a credit loss, the cost basis is not adjusted. When we determine a security is uncollectable, the remaining amortized cost will be written off. In determining the credit loss component, we discount the estimated cash flows on a security by security basis. We consider the impact of macroeconomic conditions on inputs used to measure the amount of credit loss. For most structured securities, cash flow estimates are based on bond-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayment speeds and structural support, including overcollateralization, excess spread, subordination and guarantees. For corporate bonds, cash flow estimates are derived by considering asset type, rating, time to maturity, and applying an expected loss rate. If we intend to sell an impaired fixed maturity security, available for sale, or identify an impaired fixed maturity security, available for sale, for which it is more likely than not we will be required to sell before anticipated recovery, the difference between the fair value and the amortized cost is included in other investment gains (losses) and the fair value becomes the new amortized cost. The new cost basis is not adjusted for any subsequent recoveries in fair value. The Company reports accrued investment income separately from fixed maturities, available for sale, and has elected not to measure an allowance for credit losses for accrued investment income. Accrued investment income is written off through net investment income at the time the issuer of the bond defaults or is expected to default on payments. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include invested cash and other investments purchased with original maturities of less than three months. We carry them at amortized cost, which approximates estimated fair value. It is the Company's policy to offset negative cash balances with positive balances in other accounts with the same counterparty when agreements are in place permitting legal right of offset. |
Deferred Acquisition Costs, Present Value of Future Profits and Sales Inducements | Deferred Acquisition Costs, Present Value of Future Profits and Sales Inducements Deferred acquisition costs represent policy acquisition costs that have been capitalized and are subject to amortization. Capitalized costs are incremental costs directly related to the successful acquisition of new or renewal insurance contracts. Such costs consist primarily of commissions, underwriting, sales and contract issuance and processing expenses. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. Deferred acquisition costs are amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. For life and health insurance products, the constant level basis used is policy counts. For all annuity products, the constant level basis used is the initial deposit in force. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on our experience, industry data, and other factors and are consistent with those used for the liability for future policy benefits. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at the time. Unexpected lapses, due to higher mortality and lapse experience than expected, are recognized in the current period as a reduction of the capitalized balances. Changes in future estimates are recognized prospectively over the remaining expected contract term. The carrying amount of deferred acquisition costs is not subject to recovery testing upon the adoption of ASU 2018-12. The present value of future profits is the value assigned to the right to receive future cash flows from policyholder insurance contracts existing at September 10, 2003 (the "Effective Date", the effective date of the bankruptcy reorganization of Conseco, Inc., an Indiana corporation (our "Predecessor")). The present value of future profits is amortized in the same manner as described above for deferred acquisition costs. Certain of our annuity products offer sales inducements to contract holders in the form of enhanced crediting rates or bonus payments in the initial period of the contract. Certain of our life insurance products offer persistency bonuses credited to the contract holder's balance after the policy has been outstanding for a specified period of time. These enhanced rates and persistency bonuses are considered sales inducements in accordance with GAAP. Such amounts are deferred and amortized in the same manner as deferred acquisition costs (and are classified as deferred acquisition costs in the consolidated balance sheet). Unlike deferred acquisition costs, such amounts are considered contractual cash flows and, as a result, are subject to periodic recovery testing. |
Market Risk Benefits | Market Risk Benefits Market risk benefits ("MRBs") are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Many of our fixed indexed annuity products include a guaranteed living withdrawal benefit ("GLWB") that is considered a MRB. MRBs are measured at fair value using an option-based valuation model based on amount of exposure, market data, Company experience and other factors. The calculation of MRBs includes market assumptions (interest rate, equity returns, volatility and dividend yields) and nonmarket assumptions (mortality rates, surrender and withdrawal rates, GLWB utilization and spreads). Changes in fair value are recognized in earnings each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in other comprehensive income (loss). MRBs in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. |
Policyholder Account Balances | Policyholder Account Balances Policyholder account balances represent the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. It includes the accumulated account deposits, plus interest credited, less policyholder withdrawals and, if applicable, charges assessed. This balance also includes liabilities for the funding agreement-backed notes ("FABN"). Total liabilities for insurance products related to our fixed indexed annuities are comprised of: (i) the liability related to the host contract; and (ii) the fair market value of the embedded derivatives as summarized below (dollars in millions): December 31, December 31, Fixed indexed annuity insurance liabilities: Host contract liability $ 8,487.0 $ 7,856.4 Embedded derivatives at fair value 1,376.7 1,297.0 Total fixed indexed annuity insurance liabilities $ 9,863.7 $ 9,153.4 For presentation in the consolidated balance sheet, the total fixed indexed annuity insurance liability balance is bifurcated between: (i) policyholder account balances (which is the total of all current balances accruing to the policyholder under the terms and conditions of the policies assuming the contracts will continue in force); and (ii) the difference between the total fixed indexed annuity insurance liabilities summarized above and the policyholder account balances, which is classified as future policy benefits. These classifications are summarized below (dollars in millions): December 31, December 31, Policyholder account balances $ 10,138.6 $ 9,644.8 Future policy benefits (274.9) (491.4) Total fixed indexed annuity insurance liabilities $ 9,863.7 $ 9,153.4 When the total policyholder account balance exceeds the total fixed indexed annuity insurance liabilities, a negative future policy benefit balance will occur. |
Liability for Future Policy Benefits | Liability for Future Policy Benefits The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses (where the timing and amount of payment depends on policyholder mortality or morbidity), less the present value of estimated future net premiums to be collected from policyholders (where net premiums are gross premiums multiplied by the net-to-gross ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. The liability is estimated using current assumptions that include discount rates, mortality, morbidity, lapse/withdrawal rates and expenses. Such assumptions are based on our historical experience, industry data, and other factors that are inherently uncertain. This liability also includes the amount of total reserves above (below) policyholder account balances for our fixed indexed annuity products due to the valuation of the related embedded derivative as described above. The liability for future policy benefits is established using a net premium ratio approach where net premiums (the portion of gross premiums required to fund expected insurance benefits and claims settlement expenses) under the contract are accrued each period as the liability for future policy benefits. The net premium ratio used to accrue the liability for future policy benefits in each period is determined by using the historical and present value of expected future benefits and claim adjustment expenses for the cohort divided by the historical and present value of expected future gross premiums for the cohort. Our long duration insurance contracts are grouped into annual calendar-year cohorts primarily based on the contractual issue date, marketing distribution channel, legal entity and product type. Single premium contracts are grouped into separate cohorts from other traditional products. Riders are generally combined with the base policy. Insurance contracts which were issued prior to the Effective Date are grouped by marketing distribution channel, legal entity and product type in a single issue year cohort. The liability is adjusted for differences between actual and expected experience. We review our historical and future cash flow assumptions quarterly and update the net premium ratio used to calculate the liability each time the assumptions are changed. Each quarter, we update our estimates of cash flows expected over the entire life of a group of contracts using actual historical experience and current future cash flow assumptions. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. This amount is then compared to the carrying amount of the liability as of that same date, before the updating of cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss and is presented as a separate component of benefit expense in the consolidated statement of operations. In subsequent periods, the revised net premiums are used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums is determined to be insufficient to provide for expected future policy benefits and claim settlement costs, the net to gross ratio is capped at 100 percent. When this occurs, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield ("A" credit rated corporate bond yield) at contract inception for contracts issued after January 1, 2021. The contract inception date for contracts issued by the Predecessor is September 10, 2003. The discount rate in effect at contract inception is locked-in for the calculation of the net to gross ratio and accretion of interest cost on the liability is recorded through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current rate at each reporting period with the impact resulting from such updates recorded in other comprehensive income. We develop discount rate curves for discounting cash flows to calculate the liability for future policy benefits based on the duration characteristics of the underlying liabilities. For liability cash flows that are projected beyond the duration of market-observable A-credit-rated fixed-income instruments, we use the last market-observable yield level and use linear interpolation to determine yield assumptions for durations that do not have market-observable yields. |
Liability for Life Insurance Policy Claims | Liability for Life Insurance Policy Claims The liability for life insurance policy claims include life policy and contract claims, including incurred but not reported claims. The liability for these claims is based on our estimated ultimate cost to settle all claims that have been incurred as of the reporting date. Such amounts are estimated based on an analysis of historical patterns of claims, which are continually reviewed and updated. Adjustments resulting from differences between our estimates and actual payments are recognized in the period the estimates are made or claims are paid. |
Deferred Profit Liability | Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability ("DPL"). Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policy benefits, including discount rate, mortality, lapses and expenses. The DPL is amortized and recognized in insurance policy benefits in proportion to insurance in force for life insurance contracts and expected future benefit payments for annuity contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance. We review and update the estimate of cash flows for the DPL at the same time as the estimate of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period and any difference is recognized as either a charge or credit to insurance policy benefits. |
Recognition of Insurance Policy Income and Related Benefits and Expenses on Insurance Contracts | Recognition of Insurance Policy Income and Related Benefits and Expenses on Insurance Contracts For interest-sensitive life and annuity contracts that do not involve significant mortality or morbidity risk and funding agreements, the amounts collected from policyholders are considered deposits and are not included in revenue. Revenues for these contracts consist of charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders' account balances. Such revenues are recognized when the service or coverage is provided, or when the policy is surrendered. Premiums from individual life products (other than interest-sensitive life contracts) and health products are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. We establish claim reserves based on our estimate of the loss to be incurred on reported claims plus estimates of incurred but unreported claims based on our past experience. |
Accounting for Certain Marketing Agreements | Accounting for Certain Marketing Agreements Bankers Life and Casualty Company ("Bankers Life") has entered into various distribution and marketing agreements with other insurance companies to use Bankers Life's exclusive agents to distribute prescription drug and Medicare Advantage plans. These agreements allow Bankers Life to offer these products to current and potential future policyholders without investment in management and infrastructure. We receive fee income related to the plans sold through our distribution channels and incur distribution expenses paid to our agents who sell such products. The recognition of fee revenue and the distribution expenses paid to our agents results from approval of an application by the third-party insurance companies, which we define as our customers. We recognize the net lifetime revenue expected to be earned on these sales, but only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The assumptions and constraints used to recognize such net revenue are based on available historical data. To the extent we make changes to the assumptions we use to calculate revenue on these products, we will recognize the impact of the changes in the period in which the change is made. |
Reinsurance | Reinsurance In the normal course of business, we seek to limit our loss exposure on any single insured or to certain groups of policies by ceding reinsurance to other insurance enterprises. We currently retain no more than $0.8 million of mortality risk on any one policy. We diversify the risk of reinsurance loss by using a number of reinsurers that have strong claims-paying ratings. In each case, the ceding CNO subsidiary is directly liable for claims reinsured in the event the assuming company is unable to pay. We have determined that each of our reinsurance agreements provide indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Such reinsurance permits recovery of the reinsured losses from reinsurers, although it does not discharge our primary liability as the direct insurer of the risks reinsured. The reinsurance recoverable for traditional and limited-payment contracts is generally measured using a net premium ratio approach to accrue the projected net gain or loss on reinsurance in proportion to the gross premiums of the underlying reinsured cohorts. Such amount is adjusted on a quarterly basis for actual experience and at least once a year for any changes in cash flow assumptions. |
Income Taxes | Income Taxes Our income tax expense includes deferred income taxes arising from temporary differences between the financial reporting and tax bases of assets and liabilities and net operating loss carryforwards ("NOLs"). Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which temporary differences are expected to be recovered or paid. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period when the changes are enacted. A reduction of the net carrying amount of deferred tax assets by establishing a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. In assessing the need for a valuation allowance, all available evidence, both positive and negative, shall be considered to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, our experience with operating loss and tax credit carryforwards expiring unused, and tax planning strategies. We evaluate the need to establish a valuation allowance for our deferred income tax assets on an ongoing basis. The realization of our deferred tax assets depends upon generating sufficient future taxable income of the appropriate type during the periods in which our temporary differences become deductible and before our NOLs expire. |
Investments in Variable Interest Entities | Investments in Variable Interest Entities We have concluded that we are the primary beneficiary with respect to certain variable interest entities ("VIEs"), which are consolidated in our financial statements. All of the VIEs are collateralized loan trusts that were established to issue securities to finance the purchase of corporate loans and other permitted investments. The assets held by the trusts are legally isolated and not available to the Company. The liabilities of the VIEs are expected to be satisfied from the cash flows generated by the underlying loans held by the trusts, not from the assets of the Company. The Company has no financial obligation to the VIEs beyond its investment in each VIE. The investment portfolios held by the VIEs are primarily comprised of commercial bank loans to corporate obligors which are almost entirely rated below-investment grade. Refer to the note to the consolidated financial statements entitled "Investments in Variable Interest Entities" for additional information about VIEs. In addition, the Company, in the normal course of business, makes passive investments in structured securities issued by VIEs for which the Company is not the investment manager. These structured securities include asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities. Our maximum exposure to loss on these securities is limited to our cost basis in the investment. We have determined that we are not the primary beneficiary of these structured securities due to the relative size of our investment in comparison to the total principal amount of the individual structured securities and the level of credit subordination which reduces our obligation to absorb gains or losses. |
Investment Borrowings | Substantially all of such investments are classified as fixed maturities, available for sale, in our consolidated balance sheet. |
Accounting for Derivatives | Accounting for Derivatives Our fixed indexed annuity products provide a guaranteed minimum rate of return and a higher potential return that is based on a percentage (the "participation rate") of the amount of increase in the value of a particular index, such as the Standard & Poor's 500 Index, over a specified period. We are generally able to change the participation rate at the beginning of each index period (typically on each policy anniversary date), subject to contractual minimums. The Company accounts for the options attributed to the policyholder for the estimated life of the contract as embedded derivatives. We are required to record the embedded derivatives related to our fixed indexed annuity products at estimated fair value. The value of the embedded derivative is based on the estimated cost to fulfill our commitment to fixed indexed annuity policyholders to purchase a series of annual forward options over the duration of the policy that back the potential return based on a percentage of the amount of increase in the value of the appropriate index. In valuing these options, we are required to make assumptions regarding: (i) future index values to determine both the future notional amounts at each anniversary date and the future prices of the forward starting options; (ii) future annual participation rates; and (iii) non-economic factors related to policy persistency. These assumptions are used to estimate the future cost to purchase the options. The value of the embedded derivatives is determined based on the present value of estimated future option costs discounted using a risk-free rate adjusted for our non-performance risk and risk margins for non-capital market inputs. The non-performance risk adjustment is determined by taking into consideration publicly available information related to spreads in the secondary market for debt with credit ratings similar to ours. These observable spreads are then adjusted to reflect the priority of these liabilities and the claim paying ability of the issuing insurance subsidiaries. Changes in fair value of such embedded derivatives are included in the insurance policy benefits line item in the consolidated statement of operations. Risk margins are established to capture non-capital market risks which represent the additional compensation a market participant would require to assume the risks related to the uncertainties regarding the embedded derivatives, including future policyholder behavior related to persistency. The determination of the risk margin is highly judgmental given the lack of a market to assume the risks solely related to the embedded derivatives of our fixed indexed annuity products. The determination of the appropriate risk-free rate and non-performance risk is sensitive to the economic and interest rate environment. Accordingly, the value of the derivative is volatile due to external market sensitivities, which may materially affect net income. Additionally, changes in the judgmental assumptions regarding the appropriate risk margin can significantly impact the value of the derivative. We typically buy call options (including call spreads) referenced to the applicable indices in an effort to offset or hedge potential increases to policyholder benefits resulting from increases in the particular index to which the policy's return is linked. We purchase certain fixed maturity securities that contain embedded derivatives that are required to be held at fair value on the consolidated balance sheet. We have elected the fair value option to carry the entire security at fair value with changes in fair value reported in net income. |
Fair Value Measurements | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, therefore, represents an exit price, not an entry price. We carry certain assets and liabilities at fair value on a recurring basis, including fixed maturities, equity securities, trading securities, investments held by VIEs, derivatives, separate account assets and embedded derivatives. We carry our COLI, which is invested in a series of mutual funds, at its cash surrender value which approximates fair value. In addition, we disclose fair value for certain financial instruments that are not carried at fair value, including mortgage loans, policy loans, cash and cash equivalents, insurance liabilities for interest-sensitive products and funding agreements, investment borrowings, notes payable and borrowings related to VIEs. The degree of judgment utilized in measuring the fair value of financial instruments is largely dependent on the level to which pricing is based on observable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. Financial instruments with readily available active quoted prices would be considered to have fair values based on the highest level of observable inputs, and little judgment would be utilized in measuring fair value. Financial instruments that rarely trade would often have fair value based on a lower level of observable inputs, and more judgment would be utilized in measuring fair value. Valuation Hierarchy There is a three-level hierarchy for valuing assets or liabilities at fair value based on whether inputs are observable or unobservable. • Level 1 – includes assets and liabilities valued using inputs that are unadjusted quoted prices in active markets for identical assets or liabilities. Our Level 1 assets primarily include cash and cash equivalents and exchange-traded securities. • Level 2 – includes assets and liabilities valued using inputs that are quoted prices for similar assets in an active market, quoted prices for identical or similar assets in a market that is not active, observable inputs, or observable inputs that can be corroborated by market data. Level 2 assets and liabilities include those financial instruments that are valued by independent pricing services using models or other valuation methodologies. These models consider various inputs such as credit rating, maturity, corporate credit spreads, reported trades and other inputs that are observable or derived from observable information in the marketplace or are supported by transactions executed in the marketplace. Financial assets in this category primarily include: certain publicly registered and privately placed corporate fixed maturity securities; certain government or agency securities; certain mortgage and asset-backed securities; certain equity securities; most investments held by our consolidated VIEs; and derivatives such as call options. Financial liabilities in this category include investment borrowings, notes payable and borrowings related to VIEs. • Level 3 – includes assets and liabilities valued using unobservable inputs that are used in model-based valuations that contain management assumptions. Level 3 assets and liabilities include those financial instruments whose fair value is estimated based on broker/dealer quotes, pricing services or internally developed models or methodologies utilizing significant inputs not based on, or corroborated by, readily available market information. Financial assets in this category include certain corporate securities, certain structured securities, mortgage loans, and other less liquid securities. Financial liabilities in this category include our insurance liabilities for interest-sensitive products, which includes embedded derivatives (including embedded derivatives related to our fixed indexed annuity products and to a modified coinsurance arrangement), and funding agreements since their values include significant unobservable inputs including actuarial assumptions. At each reporting date, we classify assets and liabilities into the three input levels based on the lowest level of input that is significant to the measurement of fair value for each asset and liability reported at fair value. This classification is 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. Our assessment of the significance of a particular input to the fair value measurement and the ultimate classification of each asset and liability requires judgment and is subject to change from period to period based on the observability of the valuation inputs. The vast majority of our assets carried at fair value use Level 2 inputs for the determination of fair value. These fair values are obtained primarily from independent pricing services, which use Level 2 inputs for the determination of fair value. Our Level 2 assets are valued as follows: • Fixed maturities available for sale, equity securities and trading securities Corporate securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads. U.S. Treasuries and obligations of U.S. Government corporations and agencies are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets and maturity. States and political subdivisions are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances and credit spreads. Foreign governments are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances, benchmark yields, credit spreads and issuer rating. Asset-backed securities, agency and non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of quoted prices in inactive markets, spreads on actively traded securities, expected prepayments, expected default rates, expected recovery rates and issue specific information including, but not limited to, collateral type, seniority and vintage. Equity securities are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads. • Investments held by VIEs Corporate securities are generally priced using market and income approaches using pricing vendors. Inputs generally consist of issuer rating, benchmark yields, maturity, and credit spreads. • Other invested assets - derivatives The fair value measurements for derivative instruments, including embedded derivatives requiring bifurcation, are determined based on the consideration of several inputs including closing exchange or over-the-counter market price quotes, time value and volatility factors underlying options, market interest rates and non-performance risk. Third-party pricing services normally derive security prices through recently reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recently reported trades, the third-party pricing services may use matrix or model processes to develop a security price where future cash flow expectations are discounted at an estimated risk-adjusted market rate. The number of prices obtained for a given security is dependent on the Company's analysis of such prices as further described below. As the Company is responsible for the determination of fair value, we have control processes designed to ensure that the fair values received from third-party pricing sources are reasonable and the valuation techniques and assumptions used appear reasonable and consistent with prevailing market conditions. Additionally, when inputs are provided by third-party pricing sources, we have controls in place to review those inputs for reasonableness. As part of these controls, we perform monthly quantitative and qualitative analysis on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. The Company's analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) where available, a comparison of multiple pricing services' valuations for the same security; (iii) a review of month to month price fluctuations; (iv) a review to ensure valuations are not unreasonably dated; and (v) back testing to compare actual purchase and sale transactions with valuations received from third parties. As a result of such procedures, the Company may conclude a particular price received from a third party is not reflective of current market conditions. In those instances, we may request additional pricing quotes or apply internally developed valuations. However, the number of such instances is insignificant and the aggregate change in value of such investments is not materially different from the original prices received. The categorization of the fair value measurements of our investments priced by independent pricing services was based upon the Company's judgment of the inputs or methodologies used by the independent pricing services to value different asset classes. Such inputs typically include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other relevant data. The Company categorizes such fair value measurements based upon asset classes and the underlying observable or unobservable inputs used to value such investments. For securities that are not priced by pricing services and may not be reliably priced using pricing models, we obtain broker quotes. These broker quotes are non-binding and represent an exit price, but assumptions used to establish the fair value may not be observable and therefore represent Level 3 inputs. Approximately 92 percent of our Level 3 fixed maturity securities and trading securities were valued using unadjusted broker quotes or broker-provided valuation inputs. The remaining Level 3 fixed maturity investments do not have readily determinable market prices and/or observable inputs. For these securities, we use internally developed valuations. Key assumptions used to determine fair value for these securities may include risk premiums, projected performance of underlying collateral and other factors involving significant assumptions which may not be reflective of an active market. For certain investments, we use a matrix or model process to develop a security price where future cash flow expectations are discounted at an estimated market rate. The pricing matrix incorporates term interest rates as well as a spread level based on the issuer's credit rating, other factors relating to the issuer, and the security's maturity. In some instances issuer-specific spread adjustments, which can be positive or negative, are made based upon internal analysis of security specifics such as liquidity, deal size, and time to maturity. |
Earnings Per Share | Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Restricted shares (including our performance units) are not included in basic earnings per share until vested. Diluted earnings per share reflect the potential dilution that could occur if outstanding stock options were exercised and restricted stock was vested. The dilution from options and restricted shares is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the average market price during the period, reducing the dilutive effect of the exercise of the options (or the vesting of the restricted stock and performance units). |
Business Segments | We view our operations as three insurance product lines (annuity, health and life) and the investment and fee income segments. Our segments are aligned based on their common characteristics, comparability of profit margins and the way management makes operating decisions and assesses the performance of the business. Our insurance product line segments (annuity, health and life) include marketing, underwriting and administration of the policies our insurance subsidiaries sell. The business written in each of the three product categories through all of our insurance subsidiaries is aggregated allowing management and investors to assess the performance of each product category. When analyzing profitability of these segments, we use insurance product margin as the measure of profitability, which is: (i) insurance policy income; and (ii) net investment income allocated to the insurance product lines; less (i) insurance policy benefits and interest credited to policyholders; and (ii) amortization of deferred acquisition costs and present value of future profits, non-deferred commissions and advertising expense. Net investment income is allocated to the product lines using the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period. Net insurance liabilities for the purpose of allocating investment income to product lines are equal to: (i) policyholder account balances for annuity products; (ii) total reserves before the fair value adjustments reflected in accumulated other comprehensive income (loss), if applicable, for all other products; less (iii) amounts related to reinsurance business; (iv) deferred acquisition costs; (v) the present value of future profits; and (vi) the value of unexpired options credited to insurance liabilities. Income from insurance products is the sum of the insurance product margins of the annuity, health and life product lines, less expenses allocated to the insurance lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes insurance product margin and income from insurance products help provide a better understanding of the business and a more meaningful analysis of the results of our insurance product lines. We market our products through the Consumer and Worksite Divisions that reflect the customers served by the Company. The Consumer and Worksite Divisions are primarily focused on marketing insurance products, several types of which are sold in both divisions and underwritten in the same manner. The Consumer Division serves individual consumers, engaging with them on the phone, virtually, online, face-to-face with agents, or through a combination of sales channels. This structure unifies consumer capabilities into a single division and integrates the strength of our agent sales forces with one of the largest direct-to-consumer insurance businesses with proven experience in advertising, web/digital and call center support. The Worksite Division focuses on the sale of voluntary benefit life and health insurance products in the workplace for businesses, associations, and other membership groups, interacting with customers at their place of employment and virtually. With a separate Worksite Division, we are bringing a sharper focus to this high-growth business while further capitalizing on the strength of our wholly-owned subsidiary, Optavise, a national provider of year-round technology-driven employee benefits management services. The investment segment involves the management of our capital resources, including investments and the management of corporate debt and liquidity. Our measure of profitability of this segment is the total net investment income not allocated to the insurance products. Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable, investment borrowings and financing agreements; (iv) expenses related to the FABN program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our FHLB investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from COLI and alternative investments income not allocated to product lines), net of interest expense on corporate debt and financing agreements. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the matched assets less: (i) interest on investment borrowings related to the FHLB investment borrowing program; (ii) interest credited on funding agreements; and (iii) amortization of deferred acquisition costs related to the FABN program. Our fee income segment includes the earnings generated from sales of third-party insurance products, services provided by Optavise and the operations of our broker/dealer and registered investment advisor. Expenses not allocated to product lines include the expenses of our corporate operations, excluding interest expense on debt. We measure segment performance by excluding total investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan, income taxes and other non-operating items consisting primarily of earnings attributable to VIEs ("pre-tax operating earnings") because we believe that this performance measure is a better indicator of the ongoing business and trends in our business. Our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of investment gains (losses), and a long-term focus is necessary to maintain profitability over the life of the business. Investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan and other non-operating items consisting primarily of earnings attributable to VIEs depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments. Investment gains (losses) and changes in fair value of embedded derivative liabilities and MRBs may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business. |
Marketable Securities | Future events may occur, or additional information may become available, which may necessitate future realized losses in our portfolio. Significant losses could have a material adverse effect on our consolidated financial statements in future periods. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Fixed Indexed Annuity Insurance Liabilities | Total liabilities for insurance products related to our fixed indexed annuities are comprised of: (i) the liability related to the host contract; and (ii) the fair market value of the embedded derivatives as summarized below (dollars in millions): December 31, December 31, Fixed indexed annuity insurance liabilities: Host contract liability $ 8,487.0 $ 7,856.4 Embedded derivatives at fair value 1,376.7 1,297.0 Total fixed indexed annuity insurance liabilities $ 9,863.7 $ 9,153.4 For presentation in the consolidated balance sheet, the total fixed indexed annuity insurance liability balance is bifurcated between: (i) policyholder account balances (which is the total of all current balances accruing to the policyholder under the terms and conditions of the policies assuming the contracts will continue in force); and (ii) the difference between the total fixed indexed annuity insurance liabilities summarized above and the policyholder account balances, which is classified as future policy benefits. These classifications are summarized below (dollars in millions): December 31, December 31, Policyholder account balances $ 10,138.6 $ 9,644.8 Future policy benefits (274.9) (491.4) Total fixed indexed annuity insurance liabilities $ 9,863.7 $ 9,153.4 |
Schedule of Terms of Federal Home Loan Bank Borrowing | The following summarizes the terms of the borrowings from the FHLB by our insurance subsidiaries (dollars in millions): Amount Maturity Interest rate at borrowed date December 31, 2023 $ 100.0 April 2024 Variable rate – 5.624% 22.0 May 2024 Variable rate – 5.672% 100.0 June 2024 Variable rate – 5.645% 15.5 July 2024 Fixed rate – 1.990% 27.0 August 2024 Fixed rate – .640% 21.7 May 2025 Variable rate – 5.718% 18.1 June 2025 Fixed rate – 2.940% 12.5 June 2025 Variable rate – 5.970% 125.0 September 2025 Variable rate – 5.750% 100.0 October 2025 Variable rate – 5.874% 100.0 October 2025 Variable rate – 5.874% 57.7 October 2025 Variable rate – 5.828% 50.0 November 2025 Variable rate – 5.813% 12.5 December 2025 Variable rate – 5.986% 50.0 January 2026 Variable rate – 5.906% 50.0 January 2026 Variable rate – 5.885% 100.0 January 2026 Variable rate – 5.788% 15.0 January 2026 Variable rate – 6.067% 21.8 May 2026 Variable rate – 5.678% 50.0 May 2026 Variable rate – 5.670% 75.0 December 2026 Variable rate – 5.742% 75.0 January 2027 Variable rate – 5.809% 50.0 January 2027 Variable rate – 5.893% 50.0 January 2027 Variable rate – 5.798% 100.0 February 2027 Variable rate – 5.784% 50.0 April 2027 Variable rate – 5.635% 50.0 May 2027 Variable rate – 5.645% 100.0 June 2027 Variable rate – 5.770% 10.0 June 2027 Variable rate – 5.993% 50.0 July 2027 Variable rate – 6.005% 50.0 July 2027 Variable rate – 6.023% 100.0 August 2027 Variable rate – 6.038% 75.0 January 2028 Variable rate – 5.778% 50.0 January 2028 Variable rate – 5.933% 50.0 January 2028 Variable rate – 5.864% 34.5 February 2028 Variable rate – 5.898% 21.0 February 2028 Variable rate – 5.784% 100.0 February 2028 Variable rate – 5.804% 15.0 July 2028 Variable rate – 5.780% 35.0 August 2028 Variable rate – 5.790% $ 2,189.3 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following summarizes the impact of adoption on the Transition Date (dollars in millions): January 1, 2021 Amounts prior to adoption of Effect of ASU 2018-12 adoption As recast Present value of future profits $ 249.4 $ 10.2 $ 259.6 Deferred acquisition costs 1,027.8 458.0 1,485.8 Reinsurance receivables 4,584.3 144.1 4,728.4 Market risk benefit asset — 2.5 2.5 Income tax assets, net 199.4 607.0 806.4 Total assets 35,339.9 1,221.8 36,561.7 Policyholder account balances 12,540.6 (172.9) 12,367.7 Future policy benefits 11,744.2 3,960.7 15,704.9 Market risk benefit liability — 114.8 114.8 Liability for policy and contract claims 561.8 (470.1) 91.7 Total liabilities 29,855.7 3,432.5 33,288.2 Retained earnings 752.3 (130.9) (a) 621.4 Accumulated other comprehensive income 2,186.1 (2,079.8) 106.3 Total shareholders' equity 5,484.2 (2,210.7) 3,273.5 _____________________ (a) The impact to retained earnings was primarily related to certain long-term care product cohorts where the present value of expected benefits exceeded the reserve at the Transition Date plus the present value of future gross premiums. As a result, the net premium ratio was capped at 100 percent with an immediate increase in the reserve for such cohorts. The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income and the impacted insurance related balances (dollars in millions): January 1, 2021 Asset accounts Present value of future profits Deferred acquisition costs Reinsurance receivables Market risk benefit asset Income tax assets, net Amounts prior to adoption of ASU 2018-12 $ 249.4 $ 1,027.8 $ 4,584.3 $ — $ 199.4 Unwinding amounts related to unrealized gains (losses) 10.2 458.0 — — — Changes in measurement of assets — — (81.6) — — Change in discount rates — — 225.7 — — Changes in market benefit reserve basis — — — 2.5 — Tax impacts of changes recognized in accumulated other comprehensive income — — — — 570.3 Tax impacts of changes recognized in retained earnings — — — — 36.7 Amounts, as recast $ 259.6 $ 1,485.8 $ 4,728.4 $ 2.5 $ 806.4 January 1, 2021 Liability accounts Policyholder account balances Future policy benefits Market risk benefit liability Liability for policy and contract claims Amounts prior to adoption of ASU 2018-12 $ 12,540.6 $ 11,744.2 $ — $ 561.8 Unwinding amounts related to unrealized gains (losses) — (197.5) — — Changes in remeasurement of future policy benefits — 31.1 — — Changes in classification of liabilities (a) (172.9) 643.0 — (470.1) Reclass to market risk benefit liability — (66.6) 66.6 — Changes in market risk benefit reserve basis — — 48.2 — Change in discount rates — 3,550.7 — — Amounts, as recast $ 12,367.7 $ 15,704.9 $ 114.8 $ 91.7 _______________ (a) Amount includes certain reclassifications to conform with the revised presentation of ASU 2018-12, such as reclassifying claims and benefits payable on long-duration health contracts to the liability for future policy benefits. January 1, 2021 Shareholders' equity accounts Accumulated other comprehensive income Retained earnings Amounts prior to adoption of ASU 2018-12 $ 2,186.1 $ 752.3 Unwinding amounts related to unrealized gains (losses) 665.7 — Changes in measurement of assets and liabilities — (112.7) Change in market risk benefit reserve basis 9.2 (54.9) Tax impacts of changes recognized in retained earnings — 36.7 Change in discount rates (3,325.0) — Tax impacts of changes recognized in accumulated other comprehensive income 570.3 — Amounts, as recast $ 106.3 $ 621.4 The following summarizes the impact of adoption on previously reported balances as of and for the years ended December 31, 2022 and 2021 (dollars in millions, except per share data): December 31, 2022 As previously Effect of reported adoption As recast Present value of future profits $ 212.2 $ (8.5) $ 203.7 Deferred acquisition costs 1,913.4 (142.5) 1,770.9 Reinsurance receivables 4,241.7 (18.3) 4,223.4 Market risk benefit asset — 65.3 65.3 Income tax assets, net 1,165.5 (102.1) 1,063.4 Total assets 33,339.2 (206.1) 33,133.1 Policyholder account balances 14,858.3 375.9 15,234.2 Future policy benefits 11,809.1 (568.9) 11,240.2 Market risk benefit liability — 11.3 11.3 Liability for policy and contract claims 456.5 (392.4) 64.1 Total liabilities 31,938.4 (574.1) 31,364.3 Retained earnings 1,459.0 232.2 1,691.2 Accumulated other comprehensive income (loss) (2,093.1) 135.8 (1,957.3) Total shareholders' equity 1,400.8 368.0 1,768.8 December 31, 2021 As previously Effect of reported adoption As recast Retained earnings $ 1,127.2 $ (1.6) $ 1,125.6 Accumulated other comprehensive income (loss) 1,947.1 (1,573.4) 373.7 Total shareholders' equity 5,259.7 (1,575.0) 3,684.7 Year ended December 31, 2022 As previously Effect of reported adoption As recast Insurance policy benefits $ 1,658.3 $ (42.9) $ 1,615.4 Liability for future policy benefits remeasurement loss — (15.6) (15.6) Change in fair value of market risk benefits — (140.2) (140.2) Amortization 309.6 (96.8) 212.8 Other operating costs and expenses 954.6 (3.7) 950.9 Total benefits and expenses 3,059.5 (299.2) 2,760.3 Income before income taxes 517.3 299.2 816.5 Income tax expense 120.5 65.4 185.9 Net income 396.8 233.8 630.6 Earnings per common share: Basic 3.43 2.02 5.45 Diluted 3.37 1.99 5.36 Year ended December 31, 2021 As previously Effect of reported adoption As recast Insurance policy benefits $ 2,190.7 $ (2.6) $ 2,188.1 Liability for future policy benefits remeasurement loss — (51.3) (51.3) Change in fair value of market risk benefits — (23.1) (23.1) Amortization 281.1 (82.9) 198.2 Other operating costs and expenses 987.3 (5.5) 981.8 Total benefits and expenses 3,554.5 (165.4) 3,389.1 Income before income taxes 567.7 165.4 733.1 Income tax expense 126.7 36.1 162.8 Net income 441.0 129.3 570.3 Earnings per common share: Basic 3.43 1.01 4.44 Diluted 3.36 0.99 4.35 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fixed Maturities for Available for Sale and Equity Securities | At December 31, 2023, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions): Amortized Gross Gross Allowance for credit losses Estimated Investment grade (a): Corporate securities $ 12,590.8 $ 73.0 $ (1,347.8) $ (26.6) $ 11,289.4 United States Treasury securities and obligations of United States government corporations and agencies 207.6 .1 (13.3) — 194.4 States and political subdivisions 2,887.2 31.3 (360.2) (.6) 2,557.7 Foreign governments 92.7 1.2 (10.4) (.4) 83.1 Asset-backed securities 1,364.5 3.9 (92.4) (.1) 1,275.9 Agency residential mortgage-backed securities 639.0 9.5 (.5) — 648.0 Non-agency residential mortgage-backed securities 1,170.8 7.0 (136.3) — 1,041.5 Collateralized loan obligations 1,042.5 3.3 (13.0) — 1,032.8 Commercial mortgage-backed securities 2,386.9 .7 (240.9) — 2,146.7 Total investment grade fixed maturities, available for sale 22,382.0 130.0 (2,214.8) (27.7) 20,269.5 Below-investment grade (a) (b): Corporate securities 596.1 1.7 (34.6) (15.1) 548.1 States and political subdivisions 9.6 — (.5) (.1) 9.0 Asset-backed securities 111.7 .2 (15.4) — 96.5 Non-agency residential mortgage-backed securities 499.3 28.8 (16.4) — 511.7 Commercial mortgage-backed securities 100.5 — (29.1) — 71.4 Total below-investment grade fixed maturities, available for sale 1,317.2 30.7 (96.0) (15.2) 1,236.7 Total fixed maturities, available for sale $ 23,699.2 $ 160.7 $ (2,310.8) $ (42.9) $ 21,506.2 _______________ (a) Investment ratings are assigned the second lowest rating by Nationally Recognized Statistical Rating Organizations ("NRSROs") (Moody's Investor Services, Inc. ("Moody's"), S&P Global Ratings ("S&P") or Fitch Ratings ("Fitch")), or if not rated by such firms, the rating assigned by the National Association of Insurance Commissioners (the "NAIC"). NAIC designations of "1" or "2" include fixed maturities generally rated investment grade (rated "Baa3" or higher by Moody's or rated "BBB-" or higher by S&P and Fitch). NAIC designations of "3" through "6" are referred to as below-investment grade (which generally are rated "Ba1" or lower by Moody's or rated "BB+" or lower by S&P and Fitch). References to investment grade or below-investment grade throughout our consolidated financial statements are determined as described above. (b) Certain structured securities rated below-investment grade by NRSROs may be assigned a NAIC 1 or NAIC 2 designation based on the cost basis of the security relative to estimated recoverable amounts as determined by the NAIC. Refer to the table below for a summary of our fixed maturity securities, available for sale, by NAIC designations. At December 31, 2022, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions): Amortized Gross Gross Allowance for credit losses Estimated Investment grade: Corporate securities $ 13,043.6 $ 28.9 $ (1,858.4) $ (37.0) $ 11,177.1 United States Treasury securities and obligations of United States government corporations and agencies 171.7 — (13.0) — 158.7 States and political subdivisions 2,836.3 19.3 (476.0) (.8) 2,378.8 Foreign governments 86.3 .1 (11.3) (.4) 74.7 Asset-backed securities 1,312.5 1.0 (130.1) (.3) 1,183.1 Agency residential mortgage-backed securities 174.3 1.4 (.7) — 175.0 Non-agency residential mortgage-backed securities 1,122.6 6.0 (174.3) — 954.3 Collateralized loan obligations 825.2 .3 (39.6) — 785.9 Commercial mortgage-backed securities 2,401.3 .1 (254.1) — 2,147.3 Total investment grade fixed maturities, available for sale 21,973.8 57.1 (2,957.5) (38.5) 19,034.9 Below-investment grade: Corporate securities 605.5 1.0 (53.5) (17.4) 535.6 States and political subdivisions 10.6 — (.8) (.1) 9.7 Asset-backed securities 123.2 — (19.3) — 103.9 Non-agency residential mortgage-backed securities 577.8 34.0 (17.6) — 594.2 Commercial mortgage-backed securities 93.3 — (18.2) — 75.1 Total below-investment grade fixed maturities, available for sale 1,410.4 35.0 (109.4) (17.5) 1,318.5 Total fixed maturities, available for sale $ 23,384.2 $ 92.1 $ (3,066.9) $ (56.0) $ 20,353.4 |
Schedule of NAIC Designations and NRSRO Equivalent Ratings | The following summarizes the NAIC designations and NRSRO equivalent ratings: NAIC Designation NRSRO Equivalent Rating 1 AAA/AA/A 2 BBB 3 BB 4 B 5 CCC and lower 6 In or near default |
Schedule of Fixed Maturity Securities Available for Sale | A summary of our fixed maturity securities, available for sale, by NAIC designations (or for fixed maturity securities held by non-regulated entities, based on NRSRO ratings) as of December 31, 2023 is as follows (dollars in millions): NAIC designation Amortized cost Estimated fair value Percentage of total estimated fair value 1 $ 15,159.4 $ 13,775.6 64.0 % 2 7,801.9 7,074.0 32.9 Total NAIC 1 and 2 (investment grade) 22,961.3 20,849.6 96.9 3 539.7 483.2 2.3 4 154.0 144.8 .7 5 34.2 26.1 .1 6 10.0 2.5 — Total NAIC 3,4,5 and 6 (below-investment grade) 737.9 656.6 3.1 $ 23,699.2 $ 21,506.2 100.0 % |
Schedule of Investments Classified by Contractual Maturity Date | The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities (such as asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities, collectively referred to as "structured securities") frequently include provisions for periodic principal payments and permit periodic unscheduled payments. Amortized Estimated (Dollars in millions) Due in one year or less $ 202.1 $ 193.3 Due after one year through five years 2,288.2 2,191.7 Due after five years through ten years 1,630.4 1,546.4 Due after ten years 12,263.3 10,750.3 Subtotal 16,384.0 14,681.7 Structured securities 7,315.2 6,824.5 Total fixed maturities, available for sale $ 23,699.2 $ 21,506.2 |
Schedule of Investment Income | Net investment income consisted of the following (dollars in millions): 2023 2022 2021 General account assets: Fixed maturities $ 1,142.9 $ 1,084.1 $ 962.6 Equity securities 1.7 5.9 4.3 Mortgage loans 97.4 63.0 65.0 Policy loans 8.6 8.4 8.2 Other invested assets 8.2 38.0 124.8 Cash and cash equivalents 20.9 5.9 .3 Policyholder and other special-purpose portfolios: Trading securities 6.5 7.7 7.2 Options related to fixed indexed products: Option income (loss) (48.3) (6.3) 212.0 Change in value of options 177.3 (200.3) 8.9 Other special-purpose portfolios 114.0 35.8 52.4 Gross investment income 1,529.2 1,042.2 1,445.7 Less investment expenses 29.5 26.3 25.0 Net investment income $ 1,499.7 $ 1,015.9 $ 1,420.7 |
Schedule of Realized Gain (Loss) on Investments | The following table sets forth the total investment gains (losses) for the periods indicated (dollars in millions): 2023 2022 2021 Realized investment gains (losses): Gross realized gains on sales of fixed maturities, available for sale $ 13.4 $ 99.8 $ 51.6 Gross realized losses on sales of fixed maturities, available for sale (58.9) (104.0) (20.4) Equity securities, net (.6) (8.3) (2.9) Other, net (23.2) (5.4) (7.0) Total realized investment gains (losses) (69.3) (17.9) 21.3 Change in allowance for credit losses (a) 8.1 (52.6) 12.2 Change in fair value of equity securities (b) .4 (2.9) (7.3) Other changes in fair value (c) (8.2) (62.0) (7.1) Other investment gains (losses) .3 (117.5) (2.2) Total investment gains (losses) $ (69.0) $ (135.4) $ 19.1 _________________ (a) Changes in the allowance for credit losses includes $2.4 million, $(1.8) million and $11.4 million for the years ended December 31, 2023, 2022 and 2021, respectively, related to investments held by VIEs. (b) Changes in the estimated fair value of equity securities (that are still held as of the end of the respective years) were $0.1 million, $(7.3) million and $(7.8) million for the years ended December 31, 2023, 2022 and 2021, respectively. (c) Changes in the estimated fair value of trading securities that we have elected the fair value option (that are still held as of the end of the respective years) were $(2.0) million, $(43.3) million and $(3.1) million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Schedule of the Investments Sold at a Loss during 2022 Which had been Continuously in an Unrealized Loss Position | The following summarizes the investments sold at a loss during 2023 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions): At date of sale Number Amortized cost Fair value Less than 6 months prior to sale 5 $ 48.8 $ 26.3 Greater than or equal to 6 months and less than 12 months prior to sale 1 10.6 .1 Greater than 12 months prior to sale 2 3.9 2.4 $ 63.3 $ 28.8 The following summarizes the investments in our portfolio rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2023 (dollars in millions): Number Cost Unrealized Estimated Less than 6 months 1 $ 4.2 $ (1.1) $ 3.1 Greater than or equal to 6 months and less than 12 months 6 21.1 (6.2) 14.9 Greater than 12 months 5 64.5 (24.9) 39.6 Total $ 89.8 $ (32.2) $ 57.6 The following summarizes the investments sold at a loss during 2023 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions): At date of sale Number Amortized cost Fair value Less than 6 months prior to sale 3 $ 3.7 $ 2.6 Greater than or equal to 6 months and less than 12 months prior to sale 2 4.9 1.8 Greater than 12 months prior to sale 1 3.5 1.0 $ 12.1 $ 5.4 The following summarizes the investments held by the VIEs rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2023 (dollars in millions): Number Cost Unrealized Estimated Less than 6 months 2 $ 7.3 $ (1.7) $ 5.6 Greater than or equal to 6 months and less than 12 months 1 1.1 (.3) .8 Greater than 12 months 1 1.9 (.6) 1.3 Total $ 10.3 $ (2.6) $ 7.7 |
Schedule of Investments with Unrealized Losses Classified By Contractual Maturity Date | The following table sets forth the amortized cost and estimated fair value of those fixed maturities, available for sale, with unrealized losses at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities frequently include provisions for periodic principal payments and permit periodic unscheduled payments. Amortized Estimated (Dollars in millions) Due in one year or less $ 145.8 $ 136.8 Due after one year through five years 1,902.1 1,799.3 Due after five years through ten years 1,039.6 935.2 Due after ten years 10,540.0 8,946.6 Subtotal 13,627.5 11,817.9 Structured securities 5,663.4 5,119.3 Total $ 19,290.9 $ 16,937.2 |
Schedule of the Unrealized Losses and Fair Value of Investments | The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2023 (dollars in millions): Less than 12 months 12 months or greater Total Description of securities Fair Unrealized Fair Unrealized Fair Unrealized Corporate securities $ 332.0 $ (5.3) $ 5,199.0 $ (640.6) $ 5,531.0 $ (645.9) United States Treasury securities and obligations of United States government corporations and agencies 126.7 (10.2) 34.5 (3.1) 161.2 (13.3) States and political subdivisions 236.9 (3.8) 990.0 (181.2) 1,226.9 (185.0) Foreign governments 6.2 — 21.1 (2.3) 27.3 (2.3) Asset-backed securities 46.9 (.8) 1,066.8 (106.0) 1,113.7 (106.8) Agency residential mortgage-backed securities 73.4 (.4) 7.1 (.1) 80.5 (.5) Non-agency residential mortgage-backed securities 69.0 (1.3) 1,062.9 (151.4) 1,131.9 (152.7) Collateralized loan obligations 75.0 (.3) 590.9 (12.7) 665.9 (13.0) Commercial mortgage-backed securities 203.8 (2.4) 1,914.1 (267.6) 2,117.9 (270.0) Total fixed maturities, available for sale $ 1,169.9 $ (24.5) $ 10,886.4 $ (1,365.0) $ 12,056.3 $ (1,389.5) The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2022 (dollars in millions): Less than 12 months 12 months or greater Total Description of securities Fair Unrealized Fair Unrealized Fair Unrealized Corporate securities $ 2,830.8 $ (329.4) $ 370.4 $ (129.3) $ 3,201.2 $ (458.7) United States Treasury securities and obligations of United States government corporations and agencies 134.4 (9.6) 21.9 (3.4) 156.3 (13.0) States and political subdivisions 667.0 (124.8) 132.1 (58.5) 799.1 (183.3) Foreign governments 35.0 (3.5) 2.1 (.3) 37.1 (3.8) Asset-backed securities 914.0 (90.1) 258.1 (53.4) 1,172.1 (143.5) Agency residential mortgage-backed securities 59.7 (.7) — — 59.7 (.7) Non-agency residential mortgage-backed securities 861.6 (89.7) 335.4 (102.2) 1,197.0 (191.9) Collateralized loan obligations 553.0 (27.4) 184.2 (12.2) 737.2 (39.6) Commercial mortgage-backed securities 1,581.4 (160.0) 593.3 (112.3) 2,174.7 (272.3) Total fixed maturities, available for sale $ 7,636.9 $ (835.2) $ 1,897.5 $ (471.6) $ 9,534.4 $ (1,306.8) |
Schedule of Changes in the Allowance for Current Expected Credit Losses Related to Investments Held by Vies | The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three years ended December 31, 2023 (dollars in millions): Corporate securities States and political subdivisions Foreign governments Asset-backed securities Total Allowance at December 31, 2020 $ 1.9 $ .3 $ — $ — $ 2.2 Additions for securities for which credit losses were not previously recorded 6.1 .1 .1 — 6.3 Additions (reductions) for securities where an allowance was previously recorded .2 (.4) .2 — — Reduction for securities sold during the period (.8) — (.1) — (.9) Allowance at December 31, 2021 7.4 — .2 — 7.6 Additions for securities for which credit losses were not previously recorded 48.9 .7 .5 .3 50.4 Additions (reductions) for securities where an allowance was previously recorded 10.3 .3 (.3) — 10.3 Reduction for securities sold during the period (12.2) (.1) — — (12.3) Allowance at December 31, 2022 54.4 .9 .4 .3 56.0 Additions for securities for which credit losses were not previously recorded 7.3 .3 .1 — 7.7 Additions (reductions) for securities where an allowance was previously recorded (7.3) (.4) — (.2) (7.9) Reduction for securities sold during the period (12.7) (.1) (.1) — (12.9) Allowance at December 31, 2023 $ 41.7 $ .7 $ .4 $ .1 $ 42.9 The following table summarizes changes in the allowance for credit losses related to investments held by VIEs for the three years ended December 31, 2023 (dollars in millions): Corporate securities Allowance at December 31, 2020 $ 15.1 Additions for securities for which credit losses were not previously recorded 1.3 Additions (reductions) for securities where an allowance was previously recorded (2.9) Reduction for securities sold during the period (9.8) Allowance at December 31, 2021 3.7 Additions for securities for which credit losses were not previously recorded 7.8 Additions (reductions) for securities where an allowance was previously recorded (3.0) Reduction for securities sold during the period (3.0) Allowance at December 31, 2022 5.5 Additions for securities for which credit losses were not previously recorded .8 Additions (reductions) for securities where an allowance was previously recorded (.3) Reduction for securities sold during the period (2.9) Allowance at December 31, 2023 $ 3.1 |
Schedule of Structured Securities | The amortized cost and estimated fair value of structured securities at December 31, 2023, summarized by type of security, were as follows (dollars in millions): Estimated fair value Type Amortized Amount Percent Asset-backed securities $ 1,476.2 $ 1,372.4 6.4 % Agency residential mortgage-backed securities 639.0 648.0 3.0 Non-agency residential mortgage-backed securities 1,670.1 1,553.2 7.2 Collateralized loan obligations 1,042.5 1,032.8 4.8 Commercial mortgage-backed securities 2,487.4 2,218.1 10.3 Total structured securities $ 7,315.2 $ 6,824.5 31.7 % |
Schedule of Carrying Value and Estimated Fair Value of Outstanding Commercial Mortgage Loans and Underlying Collateral | The following table provides the amortized cost by year of origination and estimated fair value of our outstanding commercial mortgage loans and the underlying collateral as of December 31, 2023 (dollars in millions): Estimated fair Loan-to-value ratio (a) 2023 2022 2021 2020 2019 Prior Total amortized cost Mortgage loans Collateral Less than 60% $ 239.1 $ 146.6 $ 114.8 $ 33.6 $ 73.4 $ 459.5 $ 1,067.0 $ 963.8 $ 3,938.2 60% to less than 70% 47.1 87.2 11.0 5.5 — 36.4 187.2 168.9 287.0 70% to less than 80% 19.4 77.8 24.8 — — 39.9 161.9 140.5 214.1 80% to less than 90% — — — — — 17.3 17.3 14.3 20.8 90% or greater — — — — — 24.1 24.1 17.6 25.1 Total $ 305.6 $ 311.6 $ 150.6 $ 39.1 $ 73.4 $ 577.2 $ 1,457.5 $ 1,305.1 $ 4,485.2 ________________ (a) Loan-to-value ratios are calculated as the ratio of: (i) the amortized cost of the commercial mortgage loans; to (ii) the estimated fair value of the underlying collateral. |
Schedule of Allowance For Credit Losses | The following table summarizes changes in the allowance for credit losses related to mortgage loans for the three years ended December 31, 2023 (dollars in millions): Mortgage loans Allowance for credit losses at December 31, 2020 $ 11.8 Current period provision for expected credit losses (6.2) Allowance for credit losses at December 31, 2021 5.6 Current period provision for expected credit losses 2.4 Allowance for credit losses at December 31, 2022 8.0 Current period provision for expected credit losses 7.4 Allowance for credit losses at December 31, 2023 $ 15.4 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value Categorized by Input Level | The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 31, 2023 is as follows (dollars in millions): Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total Assets: Fixed maturities, available for sale: Corporate securities $ — $ 11,678.2 $ 159.3 $ 11,837.5 United States Treasury securities and obligations of United States government corporations and agencies — 194.4 — 194.4 States and political subdivisions — 2,566.7 — 2,566.7 Foreign governments — 83.1 — 83.1 Asset-backed securities — 1,346.9 25.5 1,372.4 Agency residential mortgage-backed securities — 648.0 — 648.0 Non-agency residential mortgage-backed securities — 1,553.2 — 1,553.2 Collateralized loan obligations — 1,032.8 — 1,032.8 Commercial mortgage-backed securities — 2,205.0 13.1 2,218.1 Total fixed maturities, available for sale — 21,308.3 197.9 21,506.2 Equity securities - corporate securities 24.2 — 72.7 96.9 Trading securities: Asset-backed securities — 32.8 — 32.8 Agency residential mortgage-backed securities — 3.5 — 3.5 Non-agency residential mortgage-backed securities — 58.5 — 58.5 Collateralized loan obligations — 9.0 — 9.0 Commercial mortgage-backed securities — 118.9 — 118.9 Total trading securities — 222.7 — 222.7 Investments held by variable interest entities - corporate securities — 768.6 — 768.6 Other invested assets: Derivatives — 239.2 — 239.2 Residual tranches — 7.5 31.5 39.0 Total other invested assets — 246.7 31.5 278.2 Market risk benefit asset — — 75.4 75.4 Assets held in separate accounts — 3.1 — 3.1 Total assets carried at fair value by category $ 24.2 $ 22,549.4 $ 377.5 $ 22,951.1 Liabilities: Market risk benefit liability $ — $ — $ 7.4 $ 7.4 Embedded derivatives associated with fixed indexed annuity products — — 1,376.7 1,376.7 Total liabilities carried at fair value by category $ — $ — $ 1,384.1 $ 1,384.1 The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 31, 2022 is as follows (dollars in millions): Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total Assets: Fixed maturities, available for sale: Corporate securities $ — $ 11,584.9 $ 127.8 $ 11,712.7 United States Treasury securities and obligations of United States government corporations and agencies — 158.7 — 158.7 States and political subdivisions — 2,388.5 — 2,388.5 Foreign governments — 74.7 — 74.7 Asset-backed securities — 1,230.0 57.0 1,287.0 Agency residential mortgage-backed securities — 175.0 — 175.0 Non-agency residential mortgage-backed securities — 1,492.3 56.2 1,548.5 Collateralized loan obligations — 782.5 3.4 785.9 Commercial mortgage-backed securities — 2,207.9 14.5 2,222.4 Total fixed maturities, available for sale — 20,094.5 258.9 20,353.4 Equity securities - corporate securities 59.6 — 75.7 135.3 Trading securities: Asset-backed securities — 15.1 — 15.1 Agency residential mortgage-backed securities — .3 — .3 Non-agency residential mortgage-backed securities — 60.2 .5 60.7 Commercial mortgage-backed securities — 131.8 — 131.8 Total trading securities — 207.4 .5 207.9 Investments held by variable interest entities - corporate securities — 1,077.6 — 1,077.6 Other invested assets: Derivatives — 56.7 — 56.7 Residual tranches — — 18.3 18.3 Total other invested assets — 56.7 18.3 75.0 Market risk benefit asset — — 65.3 65.3 Assets held in separate accounts — 2.7 — 2.7 Total assets carried at fair value by category $ 59.6 $ 21,438.9 $ 418.7 $ 21,917.2 Liabilities: Market risk benefit liability $ — $ — $ 11.3 $ 11.3 Embedded derivatives associated with fixed indexed annuity products — — 1,297.0 1,297.0 Total liabilities carried at fair value by category $ — $ — $ 1,308.3 $ 1,308.3 The fair value of our financial instruments not carried at fair value on a recurring basis are as follows (dollars in millions): December 31, 2023 Quoted prices in active markets for identical assets or liabilities Significant other observable inputs Significant unobservable inputs Total estimated fair value Total carrying amount Assets: Mortgage loans $ — $ — $ 1,926.9 $ 1,926.9 $ 2,064.1 Policy loans — — 128.5 128.5 128.5 Other invested assets: Company-owned life insurance (a) — 303.0 — 303.0 303.0 Cash and cash equivalents: Unrestricted 774.5 — — 774.5 774.5 Held by variable interest entities 114.5 — — 114.5 114.5 Liabilities: Policyholder account balances — — 15,667.8 15,667.8 15,667.8 Future policy benefits — — (274.9) (274.9) (274.9) Investment borrowings — 2,190.2 — 2,190.2 2,189.3 Borrowings related to variable interest entities — 814.8 — 814.8 820.8 Notes payable – direct corporate obligations — 1,097.3 — 1,097.3 1,140.5 _________ (a) Includes $202.9 million of COLI purchased as an investment vehicle to fund our agent deferred compensation plan as further described in the footnote to the consolidated financial statements entitled "Agent Deferred Compensation Plan". December 31, 2022 Quoted prices in active markets for identical assets or liabilities Significant other observable inputs Significant unobservable inputs Total estimated fair value Total carrying amount Assets: Mortgage loans $ — $ — $ 1,273.6 $ 1,273.6 $ 1,411.9 Policy loans — — 121.6 121.6 121.6 Other invested assets: Company-owned life insurance — 199.1 — 199.1 199.1 Cash and cash equivalents: Unrestricted 575.7 — — 575.7 575.7 Held by variable interest entities 69.2 — — 69.2 69.2 Liabilities: Policyholder account balances — — 15,234.2 15,234.2 15,234.2 Future policy benefits — — (491.4) (491.4) (491.4) Investment borrowings — 1,640.5 — 1,640.5 1,639.5 Borrowings related to variable interest entities — 1,066.3 — 1,066.3 1,104.6 Notes payable – direct corporate obligations — 1,077.0 — 1,077.0 1,138.8 The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the year ended December 31, 2023 (dollars in millions): December 31, 2023 Beginning balance as of December 31, 2022 Purchases, sales, issuances and settlements, net (b) Total realized and unrealized gains (losses) included in net income Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) Transfers into Level 3 (a) Transfers out of Level 3 (a) Ending balance as of December 31, 2023 Amount of total gains (losses) for the year ended December 31, 2023 included in our net income relating to assets still held as of the reporting date Amount of total gains (losses) for the year ended December 31, 2023 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date Assets: Fixed maturities, available for sale: Corporate securities $ 127.8 $ 26.3 $ (1.7) $ 8.3 $ 9.2 $ (10.6) $ 159.3 $ (1.7) $ 5.1 Asset-backed securities 57.0 (6.3) (.2) (1.7) — (23.3) 25.5 — (1.9) Non-agency residential mortgage-backed securities 56.2 — — — — (56.2) — — — Collateralized loan obligations 3.4 — — — — (3.4) — — — Commercial mortgage-backed securities 14.5 — — (1.4) — — 13.1 — (1.5) Total fixed maturities, available for sale 258.9 20.0 (1.9) 5.2 9.2 (93.5) 197.9 (1.7) 1.7 Equity securities - corporate securities 75.7 (2.1) (.9) — — — 72.7 (.5) — Trading securities - non-agency residential mortgage-backed securities .5 — — — — (.5) — — — Other invested assets - residual tranches 18.3 13.1 .1 — — — 31.5 .1 — _________ (a) Transfers into Level 3 are the result of unobservable inputs utilized within valuation methodologies for assets that were previously valued using observable inputs. Transfers out of Level 3 are due to the use of observable inputs in valuation methodologies as well as the utilization of pricing service information for certain assets that the Company is able to validate. (b) Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities. The following summarizes such activity for the year ended December 31, 2023 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, net Assets: Fixed maturities, available for sale: Corporate securities $ 27.7 $ (1.4) $ — $ — $ 26.3 Asset-backed securities — (6.3) — — (6.3) Total fixed maturities, available for sale 27.7 (7.7) — — 20.0 Equity securities - corporate securities — (2.1) — — (2.1) Other invested assets - residual tranches 13.5 (.4) — — 13.1 The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the year ended December 31, 2022 (dollars in millions): December 31, 2022 Beginning balance as of December 31, 2021 Purchases, sales, issuances and settlements, net (b) Total realized and unrealized gains (losses) included in net income Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) Transfers into Level 3 (a) Transfers out of Level 3 (a) Ending balance as of December 31, 2022 Amount of total gains (losses) for the year ended December 31, 2022 included in our net income relating to assets still held as of the reporting date Amount of total gains (losses) for the year ended December 31, 2022 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date Assets: Fixed maturities, available for sale: Corporate securities $ 89.7 $ 15.2 $ (10.4) $ (35.5) $ 76.2 $ (7.4) $ 127.8 $ (9.8) $ (37.8) Asset-backed securities 26.6 38.1 (.1) (10.3) 2.7 — 57.0 — (10.3) Non-agency residential mortgage-backed securities — 14.3 (.3) (24.7) 66.9 — 56.2 — (24.7) Collateralized loan obligations 5.0 — — (.2) 3.6 (5.0) 3.4 — (.4) Commercial mortgage-backed securities 19.0 — — (4.5) — — 14.5 — (4.6) Total fixed maturities, available for sale 140.3 67.6 (10.8) (75.2) 149.4 (12.4) 258.9 (9.8) (77.8) Equity securities - corporate securities 11.5 63.9 .3 — — — 75.7 .4 — Trading securities: Non-agency residential mortgage-backed securities 3.5 — (.3) — .8 (3.5) .5 (.3) — Commercial mortgage-backed securities 12.9 — — — — (12.9) — — — Total trading securities 16.4 — (.3) — .8 (16.4) .5 (.3) — Investments held by variable interest entities - corporate securities 2.2 (2.1) (.1) — — — — — — Other invested assets - residual tranches — 18.6 — (2.1) 1.8 — 18.3 — (2.1) ____________ (a) Transfers into Level 3 are the result of unobservable inputs utilized within valuation methodologies for assets that were previously valued using observable inputs. Transfers out of Level 3 are due to the use of observable inputs in valuation methodologies as well as the utilization of pricing service information for certain assets that the Company is able to validate. (b) Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities. The following summarizes such activity for the year ended December 31, 2022 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, net Assets: Fixed maturities, available for sale: Corporate securities $ 27.3 $ (12.1) $ — $ — $ 15.2 Asset-backed securities 41.0 (2.9) — — 38.1 Non-agency residential mortgage-backed securities 20.3 (6.0) — — 14.3 Total fixed maturities, available for sale 88.6 (21.0) — — 67.6 Equity securities - corporate securities 67.0 (3.1) — — 63.9 Investments held by variable interest entities - corporate securities — (2.1) — — (2.1) Other invested assets - residual tranches 18.6 — — — 18.6 The following table summarizes changes in the value of our embedded derivatives associated with fixed indexed annuity products (classified in policyholder account balances and future policy benefits as presented in the note to the consolidated financial statements entitled "Derivatives") which are measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value (dollars in millions): 2023 2022 Balance at beginning of the period $ 1,297.0 $ 1,724.1 Premiums less benefits (57.4) 61.4 Change in fair value, net 137.1 (488.5) Balance at end of the period $ 1,376.7 $ 1,297.0 |
Schedule of Fair Value Measurement Inputs | The following table provides additional information about the significant unobservable (Level 3) inputs developed internally by the Company to determine fair value for certain assets and liabilities carried at fair value at December 31, 2023 (dollars in millions): Fair value at December 31, 2023 Valuation techniques Unobservable inputs Range (weighted average) (a) Assets: Corporate securities (b) $ 2.9 Discounted cash flow analysis Discount margins (2.22%) Corporate securities (c) 2.5 Recovery method Percent of recovery expected (25.00%) Corporate securities (d) 1.5 Unadjusted purchase price Not applicable Not applicable Asset-backed securities (e) 8.6 Discounted cash flow analysis Discount margins (2.24%) Equity securities (f) 63.4 Market comparables EBITDA multiples 11.3X Equity securities (g) .1 Recovery method Percent of recovery expected 0.00% - 100.00% (100.00%) Equity securities (h) 9.2 Unadjusted purchase price Not applicable Not applicable Other assets categorized as Level 3 (i) 213.9 Unadjusted third-party price source Not applicable Not applicable Market risk benefit asset (j) 75.4 Discounted cash flow analysis Surrender rates 1.42% - 15.25% (4.28%) Utilization rates 5.92% - 47.62% (24.88%) Total 377.5 Liabilities: Market risk benefit liability (j) 7.4 Discounted cash flow analysis Surrender rates 1.42 - 15.25% (4.28%) Utilization rates 5.92% - 47.62% (24.88%) Embedded derivatives related to fixed indexed annuity products (k) 1,376.7 Discounted projected embedded derivatives Projected portfolio yields 4.32% - 4.92% (4.57%) Discount rates 3.85% - 5.76% (4.41%) Surrender rates 1.42% - 23.70% (6.92%) ________________________________ (a) The weighted average is based on the relative fair value of the related assets or liabilities. (b) Corporate securities - The significant unobservable input used in the fair value measurement of our corporate securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement. (c) Corporate securities - The significant unobservable input used in the fair value measurement of these corporate securities is percentage of recovery expected. Significant increases (decreases) in percentage of recovery expected in isolation would have resulted in a significantly higher (lower) fair value measurement. (d) Corporate securities - For these assets, there were no adjustments to the purchase price. (e) Asset-backed securities - The significant unobservable input used in the fair value measurement of these asset-backed securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement. (f) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"). Generally, increases (decreases) in the EBITDA multiples would result in higher (lower) fair value measurements. (g) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is percentage of recovery expected. Significant increases (decreases) in percentage of recovery expected in isolation would have resulted in a significantly higher (lower) fair value measurement. (h) Equity securities - For these assets, there were no adjustments to the purchase price. (i) Other assets categorized as Level 3 - For these assets, there were no adjustments to non-binding quoted market prices obtained from third-party pricing sources. (j) Market risk benefits – Many of our fixed indexed annuity products include a GLWB that is considered a MRB. The calculation of the value of MRBs is based on significant unobservable inputs including assumptions related to surrenders and utilization of policy benefits. These assumptions are based on actuarial estimates and past experience. Increases in assumed surrender rates would generally increase the value of a MRB asset or decrease the value of a MRB liability (with decreases in assumed surrender rates having the opposite impacts). Increases in utilization rates would generally decrease the value of a MRB asset or increase the value of a MRB liability (with decreases in utilization rates having the opposite impacts). (k) Embedded derivatives related to fixed indexed annuity products (classified as policyholder account liabilities) - The significant unobservable inputs used in the fair value measurement of our embedded derivatives associated with fixed indexed annuity products are projected portfolio yields, discount rates and surrender rates. Increases (decreases) in projected portfolio yields in isolation would have resulted in a higher (lower) fair value measurement. The discount rate is based on risk free rates (U.S. Treasury rates for similar durations) adjusted for our non-performance risk and risk margins for non-capital market inputs. Increases (decreases) in the discount rates would have resulted in a lower (higher) fair value measurement. Assumed surrender rates are used to project how long the contracts remain in force. Generally, the longer the contracts are assumed to be in force the higher the fair value of the embedded derivative. The embedded derivatives related to fixed indexed annuity products are classified in policyholder account balances and future policy benefits as presented in the note to the consolidated financial statements entitled "Derivatives". The following table provides additional information about the significant unobservable (Level 3) inputs developed internally by the Company to determine fair value for certain assets and liabilities carried at fair value at December 31, 2022 (dollars in millions): Fair value at December 31, 2022 Valuation techniques Unobservable inputs Range (weighted average) (a) Assets: Corporate securities (b) $ 2.9 Discounted cash flow analysis Discount margins 2.23% - 3.94% (2.25%) Corporate securities (c) 3.5 Recovery method Percent of recovery expected 0.00% - 35.00% (35.00%) Corporate securities (d) .5 Unadjusted purchase price Not applicable Not applicable Asset-backed securities (e) 21.8 Discounted cash flow analysis Discount margins 2.50% - 3.86% (3.30%) Equity securities (f) 63.9 Market comparables EBITDA multiples 8.5X Equity securities (g) .1 Recovery method Percent of recovery expected 0.00% - 100.00% (100.00%) Equity securities (h) 11.7 Unadjusted purchase price Not applicable Not applicable Other assets categorized as Level 3 (i) 249.0 Unadjusted third-party price source Not applicable Not applicable Market risk benefit asset (j) 65.3 Discounted cash flow analysis Surrender rates 1.28% - 11.05% (3.45%) Utilization rates 6.78% - 63.16% (20.09%) Total 418.7 Liabilities: Market risk benefit liability (j) 11.3 Discounted cash flow analysis Surrender rates 1.28% - 11.05% (3.45%) Utilization rates 6.78% - 63.16% (20.09%) Embedded derivatives related to fixed indexed annuity products (k) 1,297.0 Discounted projected embedded derivatives Projected portfolio yields 4.30% - 4.63% (4.31%) Discount rates 3.77% - 5.48% (4.47%) Surrender rates 1.90% - 27.70% (9.20%) ________________________________ (a) The weighted average is based on the relative fair value of the related assets or liabilities. (b) Corporate securities - The significant unobservable input used in the fair value measurement of our corporate securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement. (c) Corporate securities - The significant unobservable input used in the fair value measurement of these corporate securities is percentage of recovery expected. Significant increases (decreases) in percentage of recovery expected in isolation would have resulted in a significantly higher (lower) fair value measurement. (d) Corporate securities - For these assets, there were no adjustments to the purchase price. (e) Asset-backed securities - The significant unobservable input used in the fair value measurement of these asset-backed securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement. (f) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is multiples of EBITDA. Generally, increases (decreases) in the EBITDA multiples would result in higher (lower) fair value measurements. (g) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is percentage of recovery expected. Significant increases (decreases) in percentage of recovery expected in isolation would have resulted in a significantly higher (lower) fair value measurement. (h) Equity securities - For these assets, there were no adjustments to the purchase price. (i) Other assets categorized as Level 3 - For these assets, there were no adjustments to non-binding quoted market prices obtained from third-party pricing sources. (j) Market risk benefits – Many of our fixed indexed annuity products include a GLWB that is considered a MRB. The calculation of the value of MRBs is based on significant unobservable inputs including assumptions related to surrenders and utilization of policy benefits. These assumptions are based on actuarial estimates and past experience. Increases in assumed surrender rates would generally increase the value of a MRB asset or decrease the value of a MRB liability (with decreases in assumed surrender rates having the opposite impacts). Increases in utilization rates would generally decrease the value of a MRB asset or increase the value of a MRB liability (with decreases in utilization rates having the opposite impacts). (k) Embedded derivatives related to fixed indexed annuity products - The significant unobservable inputs used in the fair value measurement of our embedded derivatives associated with fixed indexed annuity products are projected portfolio yields, discount rates and surrender rates. Increases (decreases) in projected portfolio yields in isolation would have resulted in a higher (lower) fair value measurement. The discount rate is based on risk free rates (U.S. Treasury rates for similar durations) adjusted for our non-performance risk and risk margins for non-capital market inputs. Increases (decreases) in the discount rates would have resulted in a lower (higher) fair value measurement. Assumed surrender rates are used to project how long the contracts remain in force. Generally, the longer the contracts are assumed to be in force the higher the fair value of the embedded derivative. The embedded derivatives related to fixed indexed annuity products are classified in policyholder account balances and future policy benefits as presented in the note to the consolidated financial statements entitled "Derivatives". |
LIABILITIES FOR INSURANCE PRO_2
LIABILITIES FOR INSURANCE PRODUCTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Balances and Changes in the Liability for Future Policy Benefits | The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the year ended December 31, 2023 (dollars in millions): 2023 Supplemental health Medicare supplement Long-term care Traditional life Other annuities Present value of expected net premiums ("PVENP"), beginning of period $ 2,781.3 $ 2,800.6 $ 1,034.1 $ 2,175.0 $ — Effect of changes in discount rate assumptions, beginning of period 188.4 196.4 23.2 137.1 — Beginning PVENP at original discount rate 2,969.7 2,997.0 1,057.3 2,312.1 — Effect of changes in cash flow assumptions (145.0) 76.0 (32.1) 33.0 — Effect of actual variances from expected experience (57.2) 20.1 33.4 (71.0) — Adjusted beginning of period PVENP 2,767.5 3,093.1 1,058.6 2,274.1 — Issuances 261.3 328.8 98.7 378.2 6.9 Interest accrual 127.4 123.3 49.9 94.0 — Net premiums collected (351.2) (436.9) (159.2) (399.1) (6.9) Ending PVENP at original discount rate 2,805.0 3,108.3 1,048.0 2,347.2 — Effect of changes in discount rate assumptions, end of period (86.8) (99.1) 7.6 (67.6) — PVENP, end of period $ 2,718.2 $ 3,009.2 $ 1,055.6 $ 2,279.6 $ — Present value of expected future policy benefits ("PVEFPB"), beginning of period $ 5,886.8 $ 3,033.1 $ 4,158.1 $ 4,417.9 $ 310.9 Effect of changes in discount rate assumptions, beginning of period 483.3 212.0 28.5 336.6 15.4 Beginning PVEFPB at original discount rate 6,370.1 3,245.1 4,186.6 4,754.5 326.3 Effect of changes in cash flow assumptions (187.0) 86.5 (39.0) 34.5 (3.5) Effect of actual variances from expected experience (65.8) 30.3 47.2 (86.9) 2.3 Adjusted beginning of period PVEFPB 6,117.3 3,361.9 4,194.8 4,702.1 325.1 Issuances 261.7 328.9 99.4 388.4 7.0 Interest accrual 295.0 133.9 223.9 206.7 14.8 Benefit payments (420.9) (479.8) (286.3) (431.6) (35.0) Ending PVEFPB at original discount rate 6,253.1 3,344.9 4,231.8 4,865.6 311.9 Effect of changes in discount rate assumptions, end of period (229.8) (108.3) 132.8 (170.9) (3.0) PVEFPB, end of period $ 6,023.3 $ 3,236.6 $ 4,364.6 $ 4,694.7 $ 308.9 Net liability for future policy benefits $ 3,305.1 $ 227.4 $ 3,309.0 $ 2,415.1 $ 308.9 Flooring impact — .5 — — — Adjusted net liability for future policy benefits 3,305.1 227.9 3,309.0 2,415.1 308.9 Related reinsurance recoverable (1.3) — (366.6) (194.2) — Net liability for future policy benefits, net of reinsurance recoverable $ 3,303.8 $ 227.9 $ 2,942.4 $ 2,220.9 $ 308.9 The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the year ended December 31, 2022 (dollars in millions): 2022 Supplemental health Medicare supplement Long-term care Traditional life Other annuities PVENP, beginning of period $ 3,496.8 $ 3,454.0 $ 1,313.4 $ 2,483.7 $ — Effect of changes in discount rate assumptions, beginning of period (525.6) (341.8) (183.2) (239.4) — Beginning PVENP at original discount rate 2,971.2 3,112.2 1,130.2 2,244.3 — Effect of changes in cash flow assumptions 8.3 — (17.3) 9.5 — Effect of actual variances from expected experience (79.6) (61.3) (27.2) (102.6) — Adjusted beginning of period PVENP 2,899.9 3,050.9 1,085.7 2,151.2 — Issuances 298.6 286.9 87.1 479.1 7.1 Interest accrual 123.6 117.2 50.5 83.0 — Net premiums collected (352.4) (458.0) (166.0) (401.2) (7.1) Ending PVENP at original discount rate 2,969.7 2,997.0 1,057.3 2,312.1 — Effect of changes in discount rate assumptions, end of period (188.4) (196.4) (23.2) (137.1) — PVENP, end of period $ 2,781.3 $ 2,800.6 $ 1,034.1 $ 2,175.0 $ — PVEFPB, beginning of period $ 7,688.0 $ 3,750.5 $ 5,501.6 $ 5,395.7 $ 431.9 Effect of changes in discount rate assumptions, beginning of period (1,414.8) (373.8) (1,291.2) (767.3) (88.4) Beginning PVEFPB at original discount rate 6,273.2 3,376.7 4,210.4 4,628.4 343.5 Effect of changes in cash flow assumptions 7.9 — (32.8) 25.2 — Effect of actual variances from expected experience (82.8) (63.8) (36.1) (120.1) (4.2) Adjusted beginning of period PVEFPB 6,198.3 3,312.9 4,141.5 4,533.5 339.3 Issuances 299.1 286.2 87.1 495.0 7.9 Interest accrual 289.1 128.4 222.9 193.6 15.2 Benefit payments (416.4) (482.4) (264.9) (467.6) (36.1) Ending PVEFPB at original discount rate 6,370.1 3,245.1 4,186.6 4,754.5 326.3 Effect of changes in discount rate assumptions, end of period (483.3) (212.0) (28.5) (336.6) (15.4) PVEFPB, end of period $ 5,886.8 $ 3,033.1 $ 4,158.1 $ 4,417.9 $ 310.9 Net liability for future policy benefits $ 3,105.5 $ 232.5 $ 3,124.0 $ 2,242.9 $ 310.9 Flooring impact 3.5 .3 2.8 — — Adjusted net liability for future policy benefits 3,109.0 232.8 3,126.8 2,242.9 310.9 Related reinsurance recoverable (2.6) — (339.2) (199.5) — Net liability for future policy benefits, net of reinsurance recoverable $ 3,106.4 $ 232.8 $ 2,787.6 $ 2,043.4 $ 310.9 The following table reconciles the net liability for future policy benefits to the amount presented in the consolidated balance sheet (dollars in millions): 2023 2022 Balances included in the future policy benefits rollforwards: Supplemental health $ 3,305.1 $ 3,109.0 Medicare supplement 227.9 232.8 Long-term care 3,309.0 3,126.8 Traditional life 2,415.1 2,242.9 Other annuities 308.9 310.9 Reserves excluded from rollforward (a) 2,526.9 2,619.8 Deferred profit liability 64.8 55.2 Amount of reserves above (below) policyholder account balances (b) (260.2) (491.9) Future loss reserves (c) 30.7 34.7 Future policy benefits $ 11,928.2 $ 11,240.2 _______________ (a) Primarily comprised of blocks of business that are 100% ceded. (b) Such amount represents the difference between: (i) the total insurance liabilities for our fixed indexed annuities (including the host contract and the related embedded derivative); and (ii) the policyholder account balances for these products. The accounting requirement to bifurcate the embedded derivative and value it at the current estimated fair value results in this amount. (c) In certain instances for interest-sensitive products, the total insurance liabilities for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (the "future loss reserve") be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the consolidated statement of operations (dollars in millions): Gross premiums (a) Interest accretion (b) 2023 2022 2021 2023 2022 2021 Other annuity $ 8.1 $ 8.7 $ 6.4 $ 14.8 $ 15.2 $ 16.1 Supplemental health 705.4 691.7 688.0 167.6 165.5 163.5 Medicare supplement 608.1 644.9 705.2 10.6 11.2 11.8 Long-term care 325.5 323.6 323.6 174.0 172.4 170.1 Traditional life 708.7 692.5 685.8 112.7 110.6 113.9 Total $ 2,355.8 $ 2,361.4 $ 2,409.0 $ 479.7 $ 474.9 $ 475.4 _____________________ (a) Such amounts are included in insurance policy income in the consolidated statement of operations. (b) Such amounts are included in insurance policy benefits in the consolidated statement of operations. The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts (dollars in millions): 2023 2022 Undiscounted Discounted (a) Undiscounted Discounted (a) Other annuity Expected future gross premiums $ — $ — $ — $ — Expected future benefits and expenses 376.7 308.9 403.4 310.9 Supplemental health Expected future gross premiums 8,909.8 5,625.9 8,921.1 5,455.3 Expected future benefits and expenses 10,783.5 6,023.3 10,996.1 5,886.8 Medicare supplement Expected future gross premiums 5,698.1 4,090.4 5,524.9 3,898.9 Expected future benefits and expenses 4,544.1 3,236.6 4,322.8 3,033.1 Long-term care Expected future gross premiums 3,280.4 2,353.4 2,971.9 2,126.0 Expected future benefits and expenses 7,680.6 4,364.6 7,482.4 4,158.1 Traditional life Expected future gross premiums 5,580.4 4,069.6 5,347.9 3,823.9 Expected future benefits and expenses 7,538.5 4,694.7 7,332.3 4,417.9 _____________________ (a) Calculated at the discount rates at period end. The following table provides the weighted average durations (under locked-in rates) of the liability for future policy benefits in years: 2023 2022 Other annuity 9.6 9.7 Supplemental health 11.4 11.8 Medicare supplement 6.4 6.0 Long-term care 10.6 10.6 Traditional life 10.4 10.1 The following table provides the weighted average interest rates for the liability for future policy benefits: 2023 2022 Other annuity Interest accretion rate 4.81 % 4.75 % Current discount rate 5.09 % 5.46 % Supplemental health Interest accretion rate 5.01 % 5.05 % Current discount rate 5.07 % 5.45 % Medicare supplement Interest accretion rate 4.29 % 4.25 % Current discount rate 4.92 % 5.26 % Long-term care Interest accretion rate 5.68 % 5.68 % Current discount rate 5.12 % 5.49 % Traditional life Interest accretion rate 4.77 % 4.78 % Current discount rate 5.09 % 5.46 % |
Schedule of Changes in Market Risk Benefits | The following table presents the balance of and changes in MRBs associated with our fixed indexed annuities (dollars in millions): 2023 2022 Net liability (asset), beginning of period $ (54.0) $ 86.2 Effect of changes in the instrument-specific credit risk, beginning of period 12.2 12.1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk (41.8) 98.3 Issuances (.2) (1.6) Interest accrual 21.3 16.5 Attributed fees collected — — Benefit payments — — Effect of changes in interest rates (13.1) (159.5) Effect of changes in equity markets 5.9 (9.5) Effect of changes in equity index volatility (23.0) 13.4 Actual policyholder behavior different from expected behavior 3.8 1.1 Effect of changes in future expected policyholder behavior - other (13.1) (1.0) Effect of changes in future expected policyholder behavior - risk margin (1.5) (4.3) Effect of changes in assumptions (1.5) 4.8 Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk (63.2) (41.8) Effect of changes in the instrument-specific credit risk, end of period (4.8) (12.2) Net liability (asset), end of period (68.0) (54.0) Reinsurance recoverable, end of period — — Net liability (asset), end of period, net of reinsurance $ (68.0) $ (54.0) Balance reported as an asset $ 75.4 $ 65.3 Balance reported as a liability 7.4 11.3 Net liability (asset) $ (68.0) $ (54.0) Net amount at risk $ 44.3 $ 69.7 Weighted average attained age of contract holders 69 68 |
Schedule of Policyholder Account Balance | The following tables present the balances of and changes in the liability for policyholder account balances (dollars in millions): 2023 Fixed indexed annuities Fixed interest annuities Other annuities Interest-sensitive life (b) Funding agreements Other (a) Balance, beginning of period excluding contracts 100% ceded $ 9,490.4 $ 1,663.1 $ 127.1 $ 1,209.6 $ 1,410.8 $ 395.5 Issuances (funds collected from new business) 1,373.7 197.0 — 40.8 — — Premiums received (premiums collected from inforce business) .1 2.7 28.1 203.4 — 273.4 Policy charges (19.7) (1.0) — (188.3) — — Surrenders and withdrawals (738.3) (164.6) (37.6) (31.1) (28.6) (290.0) Benefit payments (243.9) (106.9) (5.9) (24.7) — (.1) Interest credited 112.6 46.1 2.3 46.0 28.8 2.6 Other 24.3 — (.9) (.5) — (.4) Balance, end of period excluding contracts 100% ceded 9,999.2 1,636.4 113.1 1,255.2 1,411.0 381.0 Balance, end of period for contracts 100% ceded 139.4 592.4 25.2 104.6 — 10.3 Balance, end of period $ 10,138.6 $ 2,228.8 $ 138.3 $ 1,359.8 $ 1,411.0 $ 391.3 Balance, end of period, reinsurance ceded (139.4) (592.4) (25.2) (122.9) — (24.1) Balance, end of period, net of reinsurance $ 9,999.2 $ 1,636.4 $ 113.1 $ 1,236.9 $ 1,411.0 $ 367.2 Weighted average crediting rate 1.8 % 2.8 % 2.4 % 3.8 % 2.0 % 0.8 % Cash surrender value, net of reinsurance $ 9,326.2 $ 1,610.0 $ 113.1 $ 1,013.6 $ — $ 367.2 _________________ (a) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks. (b) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $28,241.0 million at the balance sheet date. 2022 Fixed indexed annuities Fixed interest annuities Other annuities Interest-sensitive life (b) Funding agreements Other (a) Balance, beginning of period excluding contracts 100% ceded $ 8,681.0 $ 1,806.1 $ 131.2 $ 1,163.9 $ 502.0 $ 368.0 Issuances (funds collected from new business) 1,509.2 83.7 — 42.1 899.0 — Premiums received (premiums collected from inforce business) .3 3.7 34.1 192.6 — 265.0 Policy charges (14.4) (.7) — (181.4) — — Surrenders and withdrawals (567.5) (149.2) (35.0) (26.7) (18.7) (240.1) Benefit payments (247.8) (127.1) (5.5) (23.9) — (.1) Interest credited 107.6 46.1 2.3 43.1 28.5 2.7 Other 22.0 .5 — (.1) — — Balance, end of period excluding contracts 100% ceded 9,490.4 1,663.1 127.1 1,209.6 1,410.8 395.5 Balance, end of period for contracts 100% ceded 154.4 632.9 26.3 113.4 — 10.7 Balance, end of period $ 9,644.8 $ 2,296.0 $ 153.4 $ 1,323.0 $ 1,410.8 $ 406.2 Balance, end of period, reinsurance ceded (154.4) (632.9) (26.3) (133.8) — (25.0) Balance, end of period, net of reinsurance $ 9,490.4 $ 1,663.1 $ 127.1 $ 1,189.2 $ 1,410.8 $ 381.2 Weighted average crediting rate 1.5 % 2.8 % 1.9 % 3.7 % 2.0 % 0.7 % Cash surrender value, net of reinsurance $ 8,842.7 $ 1,651.7 $ 127.1 $ 964.4 $ — $ 381.2 _________________ (a) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks. (b) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $26,296.9 million at the balance sheet date. The following table reconciles the liability for policyholder account balances to the amount presented in the consolidated balance sheet (dollars in millions): 2023 2022 Amounts included in the liability for policyholder account balances rollforwards: Fixed indexed annuities $ 10,138.6 $ 9,644.8 Fixed interest annuities 2,228.8 2,296.0 Other annuities 138.3 153.4 Interest-sensitive life 1,359.8 1,323.0 Funding agreements 1,411.0 1,410.8 Other 391.3 406.2 Total $ 15,667.8 $ 15,234.2 |
Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (dollars in millions): 2023 Range of guaranteed minimum crediting rates (a) At guaranteed minimum 1-50 basis points above 51-150 basis points above Greater than 150 basis points above Total Fixed interest annuities 0.00%-2.99% 112.9 232.6 225.3 105.7 $ 676.5 3.00%-4.99% 1,438.4 27.3 — — 1,465.7 5.00% and greater 86.6 — — — 86.6 Subtotal 1,637.9 259.9 225.3 105.7 2,228.8 Other annuities 0.00%-2.99% 34.4 25.0 — — 59.4 3.00%-4.99% 44.9 — — — 44.9 5.00% and greater 34.0 — — — 34.0 Subtotal 113.3 25.0 — — 138.3 Interest-sensitive life 0.00%-2.99% 16.2 7.9 14.9 637.7 676.7 3.00%-4.99% 448.1 50.1 162.2 .5 660.9 5.00% and greater 21.7 .5 — — 22.2 Subtotal 486.0 58.5 177.1 638.2 1,359.8 Other 0.00%-2.99% 17.3 350.8 — — 368.1 3.00%-4.99% 23.0 — — — 23.0 5.00% and greater .2 — — — .2 Subtotal 40.5 350.8 — — 391.3 Total 0.00%-2.99% 180.8 616.3 240.2 743.4 1,780.7 3.00%-4.99% 1,954.4 77.4 162.2 .5 2,194.5 5.00% and greater 142.5 .5 — — 143.0 Total policyholder account balances, excluding fixed indexed annuities $ 2,277.7 $ 694.2 $ 402.4 $ 743.9 4,118.2 Fixed indexed annuity account balances 10,138.6 Funding agreements 1,411.0 Total policyholder account balances $ 15,667.8 ____________________ (a) Excludes the account balances related to: (i) fixed indexed annuity contracts which do not have a minimum crediting rate since returns are based on an index; and (ii) funding agreements which have a fixed crediting rate. 2022 Range of guaranteed minimum crediting rates (a) At guaranteed minimum 1-50 basis points above 51-150 basis points above Greater than 150 basis points above Total Fixed interest annuities 0.00%-2.99% 159.0 293.7 41.9 73.7 $ 568.3 3.00%-4.99% 1,610.0 27.4 .1 — 1,637.5 5.00% and greater 90.2 — — — 90.2 Subtotal 1,859.2 321.1 42.0 73.7 2,296.0 Other annuities 0.00%-2.99% 46.7 30.0 — — 76.7 3.00%-4.99% 66.2 — — — 66.2 5.00% and greater 10.5 — — — 10.5 Subtotal 123.4 30.0 — — 153.4 Interest-sensitive life 0.00%-2.99% 8.7 — 54.4 200.9 264.0 3.00%-4.99% 401.8 120.6 147.0 366.6 1,036.0 5.00% and greater 22.1 .5 — .4 23.0 Subtotal 432.6 121.1 201.4 567.9 1,323.0 Other 0.00%-2.99% 18.0 363.9 — — 381.9 3.00%-4.99% 23.9 — — — 23.9 5.00% and greater .4 — — — .4 Subtotal 42.3 363.9 — — 406.2 Total 0.00%-2.99% 232.4 687.6 96.3 274.6 1,290.9 3.00%-4.99% 2,101.9 148.0 147.1 366.6 2,763.6 5.00% and greater 123.2 .5 — .4 124.1 Total policyholder account balances, excluding fixed indexed annuities $ 2,457.5 $ 836.1 $ 243.4 $ 641.6 4,178.6 Fixed indexed annuity account balances 9,644.8 Funding agreements 1,410.8 Total policyholder account balances $ 15,234.2 ____________________ (a) Excludes the account balances related to: (i) fixed indexed annuity contracts which do not have a minimum crediting rate since returns are based on an index; and (ii) funding agreements which have a fixed crediting rate. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense were as follows (dollars in millions): 2023 2022 2021 Current tax expense $ 68.3 $ 31.8 $ 64.1 Deferred tax expense 12.0 154.1 98.7 Total income tax expense $ 80.3 $ 185.9 $ 162.8 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. statutory corporate tax rate to the effective rate reflected in the consolidated statement of operations is as follows: 2023 2022 2021 U.S. statutory corporate rate 21.0 % 21.0 % 21.0 % Non-taxable income and nondeductible benefits, net (.7) (.4) (.5) State taxes 2.2 2.2 1.7 Effective tax rate 22.5 % 22.8 % 22.2 % |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company's income tax assets and liabilities are summarized below (dollars in millions): 2023 2022 Deferred tax assets: Net federal operating loss carryforwards $ 77.1 $ 166.0 Net state operating loss carryforwards 2.5 2.5 Insurance liabilities 322.8 298.5 Indirect costs allocable to self-constructed real estate assets 252.9 214.8 Accumulated other comprehensive loss 445.5 552.4 Other 35.6 7.3 Gross deferred tax assets 1,136.4 1,241.5 Deferred tax liabilities: Investments (36.3) (37.2) Present value of future profits and deferred acquisition costs (163.0) (148.9) Gross deferred tax liabilities (199.3) (186.1) Net deferred tax assets 937.1 1,055.4 Current income taxes prepaid (accrued) (.9) 8.0 Income tax assets, net $ 936.2 $ 1,063.4 |
Schedule of Operating Loss Carryforwards | We have $367.2 million of federal NOLs as of December 31, 2023, as summarized below (dollars in millions): Net operating loss Year of expiration carryforwards 2026 $ 15.7 2027 10.8 2028 80.3 2029 213.2 2030 .3 2031 .2 2032 44.4 2033 .6 2034 .9 2035 .8 Total federal non-life NOLs $ 367.2 |
NOTES PAYABLE - DIRECT CORPOR_2
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The following notes payable were direct corporate obligations of the Company as of December 31, 2023 and 2022 (dollars in millions): 2023 2022 5.250% Senior Notes due May 2025 $ 500.0 $ 500.0 5.250% Senior Notes due May 2029 500.0 500.0 5.125% Subordinated Debentures due 2060 150.0 150.0 Revolving Credit Agreement (as defined below) — — Unamortized debt issuance costs (9.5) (11.2) Direct corporate obligations $ 1,140.5 $ 1,138.8 |
Schedule of Maturities of Long-Term Debt | The scheduled repayment of our direct corporate obligations was as follows at December 31, 2023 (dollars in millions): Year ending December 31, 2024 $ — 2025 500.0 2026 — 2027 — 2028 — Thereafter 650.0 $ 1,150.0 |
LITIGATION AND OTHER LEGAL PR_2
LITIGATION AND OTHER LEGAL PROCEEDINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Information Related to Right to Use Assets and Weighted Average Information | Information related to our right of use assets are as follows (dollars in millions): 2023 2022 Operating lease expense $ 26.3 $ 24.3 Cash paid for operating lease liability 23.8 25.5 Right of use assets obtained in exchange for lease liabilities (non-cash transactions) 62.4 21.7 Total right of use assets 85.3 46.6 Weighted average remaining lease term (in years) 7.0 Weighted average discount rate 3.79 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of our operating lease liabilities as of December 31, 2023 are as follows (dollars in millions): 2024 $ 22.1 2025 16.8 2026 13.4 2027 10.3 2028 8.3 Thereafter 34.6 Total undiscounted lease payments 105.5 Less interest (14.8) Present value of lease liabilities $ 90.7 |
AGENT DEFERRED COMPENSATION P_2
AGENT DEFERRED COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Used | We used the following assumptions for the deferred compensation plan to calculate: 2023 2022 Benefit obligations: Discount rate 5.00 % 5.25 % Net periodic cost: Discount rate 5.25 % 2.75 % |
Schedule of Expected Benefit Payments | The benefits expected to be paid pursuant to our agent deferred compensation plan as of December 31, 2023 were as follows (dollars in millions): 2024 $ 8.2 2025 8.5 2026 8.8 2027 8.9 2028 8.9 2029 - 2033 44.4 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value by Balance Sheet Location | Our freestanding and embedded derivatives, which are not designated as hedging instruments, are held at fair value and are summarized as follows (dollars in millions): Fair value 2023 2022 Assets: Other invested assets: Fixed indexed call options $ 239.2 $ 56.7 Reinsurance receivables (17.5) (17.8) Total assets $ 221.7 $ 38.9 Liabilities: Embedded derivatives related to fixed indexed annuities at fair value: Policyholder account balances $ 1,651.6 $ 1,788.4 Future policy benefits (274.9) (491.4) Total liabilities $ 1,376.7 $ 1,297.0 |
Schedule of Derivative Instruments | The following table represents activity associated with derivative instruments as of the dates indicated: Measurement December 31, 2022 Additions Maturities/terminations December 31, 2023 Fixed indexed annuities - embedded derivative Policies 123,486 11,730 (9,918) 125,298 Fixed indexed call options Notional (a) $ 2,784.3 $ 3,320.9 $ (2,837.3) $ 3,267.9 _________________ (a) Dollars in millions. |
Schedule Pre-Tax Gains (Losses) Recognized in Net Revenues for Derivative Instruments | The following table provides the pre-tax impact recognized in net income for derivative instruments, which are not designated as hedges for the periods indicated (dollars in millions): 2023 2022 2021 Net investment income (loss) from policyholder and other special-purpose portfolios: Fixed indexed call options $ 129.0 $ (206.6) $ 220.9 Total investment gains (losses): Embedded derivative related to modified coinsurance agreement .3 (16.1) (3.1) Total revenues from derivative instruments, not designated as hedges 129.3 (222.7) 217.8 Insurance policy benefits: Embedded derivatives related to fixed indexed annuities 137.1 (488.5) (23.5) Net pre-tax impact $ (7.8) $ 265.8 $ 241.3 |
Schedule of Derivatives with Master Netting Arrangements | The following table summarizes information related to derivatives with master netting arrangements or collateral as of December 31, 2023 and 2022 (dollars in millions): Gross amounts not offset in the balance sheet Gross amounts recognized Gross amounts offset in the balance sheet Net amounts of assets presented in the balance sheet Non-cash collateral Cash collateral received Net amount December 31, 2023: Fixed indexed call options $ 239.2 $ — $ 239.2 $ 37.0 $ — $ 202.2 December 31, 2022: Fixed indexed call options 56.7 — 56.7 — — 56.7 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Share-based Compensation | A summary of the Company's stock option activity and related information for 2023 is presented below (shares in thousands; dollars in millions, except per share amounts): Shares Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding at the beginning of the year 2,736 $ 19.45 Options granted — — Exercised (484) (19.43) $ 2.9 Forfeited or terminated (67) (19.62) Outstanding at the end of the year 2,185 19.45 3.9 $ 11.8 Options exercisable at the end of the year 2,185 3.9 $ 11.8 A summary of the Company's stock option activity and related information for 2022 is presented below (shares in thousands; dollars in millions, except per share amounts): Shares Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding at the beginning of the year 3,411 $ 19.28 Options granted — — Exercised (618) (18.43) $ 3.8 Forfeited or terminated (57) (20.18) Outstanding at the end of the year 2,736 19.45 4.7 $ 15.1 Options exercisable at the end of the year 2,540 4.6 $ 14.1 A summary of the Company's stock option activity and related information for 2021 is presented below (shares in thousands; dollars in millions, except per share amounts): Shares Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding at the beginning of the year 4,544 $ 19.01 Options granted — — Exercised (1,023) (18.01) $ 7.8 Forfeited or terminated (110) (19.97) Outstanding at the end of the year 3,411 19.28 5.0 $ 19.2 Options exercisable at the end of the year 2,662 4.6 $ 15.7 |
Schedule of Share-Based Compensation by Exercise Price Range | The following table summarizes information about stock options outstanding at December 31, 2023 (shares in thousands): Options outstanding Options exercisable Range of exercise prices Number outstanding Remaining life (in years) Average exercise price Number exercisable Average exercise price $15.08 - $21.06 1,925 3.9 $ 18.92 1,925 $ 18.92 $23.33 260 4.0 23.33 260 23.33 2,185 2,185 |
Schedule of Nonvested Share Activity | A summary of the Company's non-vested restricted stock activity for 2023 is presented below (shares in thousands): Shares Weighted average grant date fair value Non-vested shares, beginning of year 1,023 $ 22.01 Granted 462 24.93 Vested (483) 21.87 Forfeited (14) 24.11 Non-vested shares, end of year 988 23.41 |
Schedule of Performance Share-Based Compensation | A summary of the Company's performance units is presented below (shares in thousands): Total shareholder return awards Operating return on equity awards Operating earnings per share awards Awards outstanding at December 31, 2020 339 581 239 Granted in 2021 — 209 209 Additional shares issued pursuant to achieving certain performance criteria (a) — 57 — Shares vested in 2021 (81) (178) — Forfeited (55) (34) (23) Awards outstanding at December 31, 2021 203 635 425 Granted in 2022 — 204 204 Additional shares issued pursuant to achieving certain performance criteria (a) 188 186 — Shares vested in 2022 (389) (390) — Forfeited — (24) (25) Awards outstanding at December 31, 2022 2 611 604 Granted in 2023 — 215 216 Additional shares issued pursuant to achieving certain performance criteria (a) — 221 221 Shares vested in 2023 (1) (443) (441) Forfeited — (9) (9) Awards outstanding at December 31, 2023 1 595 591 _________________________ (a) The performance units that vested in 2021, 2022 and 2023 provided for a payout of up to 200 percent of the award if certain performance levels were achieved. |
Schedule of Earnings Per Share Reconciliation | A reconciliation of net income and shares used to calculate basic and diluted earnings per share is as follows (dollars in millions and shares in thousands): 2023 2022 2021 Net income for basic earnings per share $ 276.5 $ 630.6 $ 570.3 Shares: Weighted average shares outstanding for basic earnings per share 113,275 115,733 128,400 Effect of dilutive securities on weighted average shares: Amounts related to employee benefit plans 1,849 1,984 2,726 Weighted average shares outstanding for diluted earnings per share 115,124 117,717 131,126 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) included in shareholders' equity as of December 31, 2023 and 2022, is comprised of the following (dollars in millions): 2023 2022 Net unrealized losses on investments having no allowance for credit losses $ (1,235.2) $ (1,247.0) Unrealized losses on investments with an allowance for credit losses (931.0) (1,780.7) Change in discount rates for liability for future policy benefits 133.4 500.7 Change in instrument-specific credit risk for market risk benefits 4.8 12.2 Deferred income tax assets 451.2 557.5 Accumulated other comprehensive loss $ (1,576.8) $ (1,957.3) |
OTHER OPERATING STATEMENT DATA
OTHER OPERATING STATEMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Insurance Policy Income | Insurance policy income consisted of the following (dollars in millions): 2023 2022 2021 Direct premiums collected (a) $ 4,574.9 $ 4,619.7 $ 4,457.7 Reinsurance assumed 16.6 18.6 20.7 Reinsurance ceded (194.6) (214.6) (231.3) Premiums collected, net of reinsurance 4,396.9 4,423.7 4,247.1 Change in unearned premiums 18.5 9.8 0.9 Less premiums on interest-sensitive life and products without mortality and morbidity risk which are recorded as additions to insurance liabilities (a) (2,111.7) (2,123.6) (1,905.2) Premiums on traditional products with mortality or morbidity risk 2,303.7 2,309.9 2,342.8 Fees and surrender charges on interest-sensitive products 201.8 189.9 180.6 Insurance policy income $ 2,505.5 $ 2,499.8 $ 2,523.4 ________________ (a) Excludes $899.0 million and $499.9 million in 2022 and 2021, respectively, of funds received from the issuance of funding agreements pursuant to our FABN program. |
Schedule of Other Operating Cost and Expense | Other operating costs and expenses were as follows (dollars in millions): 2023 2022 2021 Commission expense $ 111.1 $ 114.2 $ 110.9 Salaries and wages 290.9 287.9 267.9 Other 646.3 548.8 603.0 Total other operating costs and expenses $ 1,048.3 $ 950.9 $ 981.8 |
Schedule of Changes in Deferred Acquisition Costs | Changes in deferred acquisition costs were as follows (dollars in millions): 2023 Fixed indexed annuities Fixed interest annuities Supplemental health Medicare supplement Long-term care Interest-sensitive life Traditional life Funding agreements Total Beginning of period $ 365.6 $ 19.6 $ 378.8 $ 161.2 $ 137.9 $ 212.2 $ 409.1 $ 6.0 $ 1,690.4 Capitalizations 88.9 11.3 60.6 24.1 17.5 36.8 114.3 — 353.5 Amortization expense (46.9) (3.9) (31.4) (27.8) (15.1) (14.5) (51.5) (1.5) (192.6) End of period $ 407.6 $ 27.0 $ 408.0 $ 157.5 $ 140.3 $ 234.5 $ 471.9 $ 4.5 $ 1,851.3 2022 Fixed indexed annuities Fixed interest annuities Supplemental health Medicare supplement Long-term care Interest-sensitive life Traditional life Funding agreements Total Beginning of period $ 313.0 $ 19.0 $ 357.5 $ 170.2 $ 136.4 $ 196.3 $ 357.6 $ 3.3 $ 1,553.3 Capitalizations 92.8 4.1 50.5 20.7 16.8 29.8 94.6 4.2 313.5 Amortization expense (40.2) (3.5) (29.2) (29.7) (15.3) (13.9) (43.1) (1.5) (176.4) End of period $ 365.6 $ 19.6 $ 378.8 $ 161.2 $ 137.9 $ 212.2 $ 409.1 $ 6.0 $ 1,690.4 2021 Fixed indexed annuities Fixed interest annuities Supplemental health Medicare supplement Long-term care Interest-sensitive life Traditional life Funding agreements Total Beginning of period $ 266.0 $ 20.6 $ 339.0 $ 169.5 $ 133.4 $ 179.9 $ 318.0 $ — $ 1,426.4 Capitalizations 81.5 2.1 46.2 28.2 17.9 30.9 76.7 3.4 286.9 Amortization expense (34.5) (3.7) (27.7) (27.5) (14.9) (14.5) (37.1) (.1) (160.0) End of period $ 313.0 $ 19.0 $ 357.5 $ 170.2 $ 136.4 $ 196.3 $ 357.6 $ 3.3 $ 1,553.3 |
Schedule of Changes in Present Value of Future Insurance Profits | Changes in the present value of future profits were as follows (dollars in millions): 2023 Supplemental health Medicare supplement Long-term care Traditional life Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 154.0 $ 27.5 $ 6.2 $ 14.8 $ .8 $ .4 $ 203.7 Amortization expense (13.0) (6.9) (1.0) (1.9) (.1) (.1) (23.0) End of period $ 141.0 $ 20.6 $ 5.2 $ 12.9 $ .7 $ .3 $ 180.7 2022 Supplemental health Medicare supplement Long-term care Traditional life Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 168.1 $ 36.5 $ 7.3 $ 16.9 $ .9 $ .4 $ 230.1 Amortization expense (14.1) (9.0) (1.1) (2.1) (.1) — (26.4) End of period $ 154.0 $ 27.5 $ 6.2 $ 14.8 $ .8 $ .4 $ 203.7 2021 Supplemental health Medicare supplement Long-term care Traditional life Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 183.1 $ 47.0 $ 8.6 $ 19.3 $ 1.1 $ .5 $ 259.6 Amortization expense (15.0) (10.5) (1.3) (2.4) (.2) (.1) (29.5) End of period $ 168.1 $ 36.5 $ 7.3 $ 16.9 $ .9 $ .4 $ 230.1 Changes in sales inducements were as follows (dollars in millions): 2023 Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 76.0 $ 4.5 $ 80.5 Capitalizations 23.5 .9 24.4 Amortization expense (11.0) (.8) (11.8) End of period $ 88.5 $ 4.6 $ 93.1 2022 Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 63.0 $ 5.0 $ 68.0 Capitalizations 22.1 .4 22.5 Amortization expense (9.1) (.9) (10.0) End of period $ 76.0 $ 4.5 $ 80.5 2021 Fixed indexed annuities Fixed interest annuities Total Beginning of period $ 53.6 $ 5.8 $ 59.4 Capitalizations 17.1 .2 17.3 Amortization expense (7.7) (1.0) (8.7) End of period $ 63.0 $ 5.0 $ 68.0 |
CONSOLIDATED STATEMENT OF CAS_3
CONSOLIDATED STATEMENT OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of the Reconciliation for Net Income Provided by Operating Activities | The following reconciles net income to net cash provided by operating activities (dollars in millions): 2023 2022 2021 Cash flows from operating activities: Net income $ 276.5 $ 630.6 $ 570.3 Adjustments to reconcile net income to net cash from operating activities: Amortization and depreciation 267.4 248.5 236.6 Income taxes 21.1 152.0 182.6 Insurance liabilities 449.7 (374.7) 269.0 Accrual and amortization of investment income (170.7) 138.7 (347.6) Deferral of policy acquisition costs (377.9) (336.0) (304.2) Net investment (gains) losses 69.0 135.4 (19.1) Other (a) 47.8 (99.1) 10.7 Net cash from operating activities $ 582.9 $ 495.4 $ 598.3 _____________ (a) Primarily relates to: (i) changes in other assets and liabilities related to the timing of payments and receipts; and (ii) the change in fair value of the deferred compensation plan liability. |
Schedule of Other Significant Noncash Transactions | Other non-cash items not reflected in the investing and financing activities sections of the consolidated statement of cash flows (dollars in millions): 2023 2022 2021 Stock options, restricted stock and performance units $ 23.3 $ 25.2 $ 26.0 |
STATUTORY INFORMATION (BASED _2
STATUTORY INFORMATION (BASED ON NON-GAAP MEASURES) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Statutory Accounting Practices | The Company's U.S. based insurance subsidiaries reported the following amounts to regulatory agencies, after appropriate elimination of intercompany accounts among such subsidiaries (dollars in millions): 2023 2022 Statutory capital and surplus $ 1,558.9 $ 1,849.8 Asset valuation reserve 352.5 305.8 Interest maintenance reserve 368.1 395.7 Total $ 2,279.5 $ 2,551.3 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Operating information by segment is as follows (dollars in millions): 2023 2022 2021 Revenues: Annuity: Insurance policy income $ 28.4 $ 23.1 $ 19.6 Net investment income 516.3 480.0 468.9 Total annuity revenues 544.7 503.1 488.5 Health: Insurance policy income 1,594.6 1,617.3 1,661.5 Net investment income 296.7 293.3 293.5 Total health revenues 1,891.3 1,910.6 1,955.0 Life: Insurance policy income 882.5 859.4 842.3 Net investment income 144.8 141.9 143.2 Total life revenues 1,027.3 1,001.3 985.5 Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances) 131.5 (205.3) 219.8 Investment income not allocated to product lines 335.6 257.5 264.8 Fee revenue and other income: Fee revenue 177.6 169.3 147.6 Amounts netted in expenses not allocated to product lines 36.6 30.5 14.9 Total segment revenues $ 4,144.6 $ 3,667.0 $ 4,076.1 (continued on next page) (continued from previous page) 2023 2022 2021 Expenses: Annuity: Insurance policy benefits $ 29.0 $ 38.3 $ 28.4 Interest credited 209.4 175.5 162.9 Amortization and non-deferred commissions 71.3 62.4 54.0 Total annuity expenses 309.7 276.2 245.3 Health: Insurance policy benefits 1,234.9 1,237.5 1,289.1 Amortization and non-deferred commissions 162.1 168.7 168.3 Total health expenses 1,397.0 1,406.2 1,457.4 Life: Insurance policy benefits 570.0 575.3 567.5 Interest credited 49.3 49.0 45.8 Amortization, non-deferred commissions and advertising expense 178.3 171.8 159.6 Total life expenses 797.6 796.1 772.9 Allocated expenses 599.0 596.6 566.5 Expenses not allocated to product lines 88.3 71.3 95.4 Market value changes of options credited to fixed indexed annuity and life policyholders 131.5 (205.3) 219.8 Amounts netted in investment income not allocated to product lines: Interest expense 169.8 96.0 72.2 Interest credited 28.8 28.5 2.2 Impact of annual option forfeitures related to fixed indexed annuity surrenders (7.1) 1.0 (15.2) Amortization 1.6 1.5 .1 Other expenses 22.3 (13.4) 16.6 Expenses netted in fee revenue: Commissions and other operating expenses 146.6 145.6 128.2 Total segment expenses 3,685.1 3,200.3 3,561.4 Pre-tax measure of profitability: Annuity margin 235.0 226.9 243.2 Health margin 494.3 504.4 497.6 Life margin 229.7 205.2 212.6 Total insurance product margin 959.0 936.5 953.4 Allocated expenses (599.0) (596.6) (566.5) Income from insurance products 360.0 339.9 386.9 Fee income 31.0 23.7 19.4 Investment income not allocated to product lines 120.2 143.9 188.9 Expenses not allocated to product lines (51.7) (40.8) (80.5) Operating earnings before taxes 459.5 466.7 514.7 Income tax expense on operating income 103.4 106.3 114.3 Net operating income $ 356.1 $ 360.4 $ 400.4 |
Schedule of Reconciliation of Operating Profit (Loss) From Segments to Consolidated | A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions): 2023 2022 2021 Total segment revenues $ 4,144.6 $ 3,667.0 $ 4,076.1 Total investment gains (losses) (69.0) (135.4) 19.1 Revenues related to earnings attributable to VIEs 71.2 45.2 27.0 Consolidated revenues 4,146.8 3,576.8 4,122.2 Total segment expenses 3,685.1 3,200.3 3,561.4 Insurance policy benefits - fair value changes in embedded derivative liabilities 29.9 (440.2) (186.8) Expenses attributable to VIEs 70.5 43.0 24.4 Fair value changes related to agent deferred compensation plan 3.5 (48.9) (8.9) Other expenses 1.0 6.1 (1.0) Consolidated expenses 3,790.0 2,760.3 3,389.1 Income before tax 356.8 816.5 733.1 Income tax expense 80.3 185.9 162.8 Net income $ 276.5 $ 630.6 $ 570.3 |
Schedule of Balance Sheet Information, by Segment | Segment balance sheet information was as follows (dollars in millions): 2023 2022 Assets: Annuity $ 12,081.9 $ 10,971.3 Health 9,512.5 9,019.9 Life 4,153.9 3,784.5 Investments not allocated to product lines 8,711.5 8,856.8 Assets of our non-life companies included in the fee income segment 243.9 207.7 Assets of our other non-life companies 398.8 292.9 Total assets $ 35,102.5 $ 33,133.1 Liabilities: Annuity $ 12,935.2 $ 12,251.0 Health 9,866.9 9,556.4 Life 4,294.6 4,031.7 Liabilities associated with investments not allocated to product lines (a) 5,561.6 5,293.8 Liabilities of our non-life companies included in the fee income segment 35.2 23.5 Liabilities of our other non-life companies 193.4 207.9 Total liabilities $ 32,886.9 $ 31,364.3 ____________ (a) Includes investment borrowings, policyholder account balances related to funding agreements, borrowings related to VIEs and notes payable - direct corporate obligations. |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Quarterly financial data (unaudited) were as follows (dollars in millions, except per share data): 2023 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenues $ 1,006.0 $ 1,022.8 $ 947.5 $ 1,170.5 Income (loss) before income taxes $ (1.0) $ 96.1 $ 215.6 $ 46.1 Income tax expense (benefit) (.2) 22.4 48.3 9.8 Net income (loss) $ (.8) $ 73.7 $ 167.3 $ 36.3 Earnings per common share: Basic: Net income (loss) $ (.01) $ .64 $ 1.48 $ .33 Diluted: Net income (loss) $ (.01) $ .64 $ 1.46 $ .32 2022 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenues $ 842.9 $ 855.0 $ 905.3 $ 973.6 Income before income taxes $ 240.3 $ 299.8 $ 227.9 $ 48.5 Income tax expense 56.9 66.5 52.0 10.5 Net income $ 183.4 $ 233.3 $ 175.9 $ 38.0 Earnings per common share: Basic: Net income $ 1.55 $ 2.02 $ 1.54 $ .33 Diluted: Net income $ 1.52 $ 1.99 $ 1.52 $ .33 |
INVESTMENTS IN VARIABLE INTER_2
INVESTMENTS IN VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Impact on Balance Sheet of Consolidating Variable Interest Entities | The following table provides supplemental information about the assets and liabilities of the VIEs which have been consolidated (dollars in millions): December 31, 2023 VIEs Eliminations Net effect on Assets: Investments held by variable interest entities $ 768.6 $ — $ 768.6 Notes receivable of VIEs held by subsidiaries — (113.8) (113.8) Cash and cash equivalents held by variable interest entities 114.5 — 114.5 Accrued investment income 2.7 — 2.7 Income tax assets, net 13.0 — 13.0 Other assets — (.7) (.7) Total assets $ 898.8 $ (114.5) $ 784.3 Liabilities: Other liabilities $ 14.6 $ (2.2) $ 12.4 Borrowings related to variable interest entities 820.8 — 820.8 Notes payable of VIEs held by subsidiaries 126.1 (126.1) — Total liabilities $ 961.5 $ (128.3) $ 833.2 December 31, 2022 VIEs Eliminations Net effect on Assets: Investments held by variable interest entities $ 1,077.6 $ — $ 1,077.6 Notes receivable of VIEs held by subsidiaries — (113.8) (113.8) Cash and cash equivalents held by variable interest entities 69.2 — 69.2 Accrued investment income 3.5 — 3.5 Income tax assets, net 19.6 — 19.6 Other assets 2.5 (.8) 1.7 Total assets $ 1,172.4 $ (114.6) $ 1,057.8 Liabilities: Other liabilities $ 29.3 $ (2.4) $ 26.9 Borrowings related to variable interest entities 1,104.6 — 1,104.6 Notes payable of VIEs held by subsidiaries 126.1 (126.1) — Total liabilities $ 1,260.0 $ (128.5) $ 1,131.5 |
Schedule of Supplemental Information, Revenues and Expenses of Variable Interest Entities | The following table provides supplemental information about the revenues and expenses of the VIEs which have been consolidated in accordance with authoritative guidance, after giving effect to the elimination of our investment in the VIEs and investment management fees earned by a subsidiary of the Company (dollars in millions): 2023 2022 2021 Revenues: Net investment income – policyholder and other special-purpose portfolios $ 85.2 $ 60.1 $ 45.6 Fee revenue and other income 4.4 5.3 5.2 Total revenues 89.6 65.4 50.8 Expenses: Interest expense 68.7 41.0 23.2 Other operating expenses 1.8 2.0 1.2 Total expenses 70.5 43.0 24.4 Income before net investment gains (losses) and income taxes 19.1 22.4 26.4 Net investment gains (losses) (4.4) (8.1) 3.6 Income before income taxes $ 14.7 $ 14.3 $ 30.0 |
Schedule of Changes in the Allowance for Current Expected Credit Losses Related to Investments Held by Vies | The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three years ended December 31, 2023 (dollars in millions): Corporate securities States and political subdivisions Foreign governments Asset-backed securities Total Allowance at December 31, 2020 $ 1.9 $ .3 $ — $ — $ 2.2 Additions for securities for which credit losses were not previously recorded 6.1 .1 .1 — 6.3 Additions (reductions) for securities where an allowance was previously recorded .2 (.4) .2 — — Reduction for securities sold during the period (.8) — (.1) — (.9) Allowance at December 31, 2021 7.4 — .2 — 7.6 Additions for securities for which credit losses were not previously recorded 48.9 .7 .5 .3 50.4 Additions (reductions) for securities where an allowance was previously recorded 10.3 .3 (.3) — 10.3 Reduction for securities sold during the period (12.2) (.1) — — (12.3) Allowance at December 31, 2022 54.4 .9 .4 .3 56.0 Additions for securities for which credit losses were not previously recorded 7.3 .3 .1 — 7.7 Additions (reductions) for securities where an allowance was previously recorded (7.3) (.4) — (.2) (7.9) Reduction for securities sold during the period (12.7) (.1) (.1) — (12.9) Allowance at December 31, 2023 $ 41.7 $ .7 $ .4 $ .1 $ 42.9 The following table summarizes changes in the allowance for credit losses related to investments held by VIEs for the three years ended December 31, 2023 (dollars in millions): Corporate securities Allowance at December 31, 2020 $ 15.1 Additions for securities for which credit losses were not previously recorded 1.3 Additions (reductions) for securities where an allowance was previously recorded (2.9) Reduction for securities sold during the period (9.8) Allowance at December 31, 2021 3.7 Additions for securities for which credit losses were not previously recorded 7.8 Additions (reductions) for securities where an allowance was previously recorded (3.0) Reduction for securities sold during the period (3.0) Allowance at December 31, 2022 5.5 Additions for securities for which credit losses were not previously recorded .8 Additions (reductions) for securities where an allowance was previously recorded (.3) Reduction for securities sold during the period (2.9) Allowance at December 31, 2023 $ 3.1 |
Schedule of Variable Interest Entities by Contractual Maturity | The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Estimated (Dollars in millions) Due in one year or less $ 2.0 $ 2.0 Due after one year through five years 746.0 727.0 Due after five years through ten years 39.6 39.6 Total $ 787.6 $ 768.6 The following table sets forth the amortized cost and estimated fair value of those investments held by the VIEs with unrealized losses at December 31, 2023, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Estimated (Dollars in millions) Due in one year or less $ .8 $ .8 Due after one year through five years 421.8 400.6 Due after five years through ten years 14.0 13.7 Total $ 436.6 $ 415.1 |
Schedule of the Investments Sold at a Loss during 2022 Which had been Continuously in an Unrealized Loss Position | The following summarizes the investments sold at a loss during 2023 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions): At date of sale Number Amortized cost Fair value Less than 6 months prior to sale 5 $ 48.8 $ 26.3 Greater than or equal to 6 months and less than 12 months prior to sale 1 10.6 .1 Greater than 12 months prior to sale 2 3.9 2.4 $ 63.3 $ 28.8 The following summarizes the investments in our portfolio rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2023 (dollars in millions): Number Cost Unrealized Estimated Less than 6 months 1 $ 4.2 $ (1.1) $ 3.1 Greater than or equal to 6 months and less than 12 months 6 21.1 (6.2) 14.9 Greater than 12 months 5 64.5 (24.9) 39.6 Total $ 89.8 $ (32.2) $ 57.6 The following summarizes the investments sold at a loss during 2023 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions): At date of sale Number Amortized cost Fair value Less than 6 months prior to sale 3 $ 3.7 $ 2.6 Greater than or equal to 6 months and less than 12 months prior to sale 2 4.9 1.8 Greater than 12 months prior to sale 1 3.5 1.0 $ 12.1 $ 5.4 The following summarizes the investments held by the VIEs rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2023 (dollars in millions): Number Cost Unrealized Estimated Less than 6 months 2 $ 7.3 $ (1.7) $ 5.6 Greater than or equal to 6 months and less than 12 months 1 1.1 (.3) .8 Greater than 12 months 1 1.9 (.6) 1.3 Total $ 10.3 $ (2.6) $ 7.7 |
BUSINESS AND BASIS OF PRESENT_2
BUSINESS AND BASIS OF PRESENTATION (Details) - Optavise - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||
Purchase price | $ 50 | ||
Payments to acquire business, net of cash | 46.2 | ||
Net assets acquired | 53 | ||
Goodwill and other intangible assets | 48 | $ 102 | |
Advisory and legal fees | $ 3 | $ 2.5 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Liabilities for Insurance Products Related to Fixed Indexed Annuity (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Policyholder Account Balance [Line Items] | ||
Total fixed indexed annuity insurance liabilities | $ 9,863.7 | $ 9,153.4 |
Fixed Indexed Annuity | ||
Policyholder Account Balance [Line Items] | ||
Host contract liability | 8,487 | 7,856.4 |
Embedded derivatives at fair value | $ 1,376.7 | $ 1,297 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fixed Indexed Annuity Insurance Liability (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 |
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 15,667.8 | $ 15,234.2 | $ 12,367.7 |
Total fixed indexed annuity insurance liabilities | 9,863.7 | 9,153.4 | |
Fixed Indexed Annuity | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 10,138.6 | 9,644.8 | |
Future policy benefits | $ (274.9) | $ (491.4) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Company retains no more than this amount of mortality risk | $ 0.8 | ||
Ceded premiums written | 195.2 | $ 206.2 | $ 222.4 |
Reinsurance recoveries benefits | 409.5 | 388.7 | 371.1 |
Assumed premiums written | 16.6 | 18.7 | 20.3 |
Insurance policy benefits related to reinsurance assumed | $ 21.8 | $ 25.3 | $ 26.3 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVESTMENTS IN VARIABLE INTEREST ENTITIES (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
Investments held in limited partnerships and hedge funds | $ 521.4 |
Unfunded commitments to limited partnerships | $ 514.2 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT BORROWINGS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) subsidiary | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Number of insurance subsidiaries that are members of the FHLB | subsidiary | 3 | ||
Investment borrowings | $ 2,189.3 | $ 1,639.5 | |
Interest expense on FHLB borrowings | 104.7 | $ 33.5 | $ 9.8 |
Federal Home Loan Bank Advances | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal home loan bank stock | 94.6 | ||
Federal home loan bank advances, collateral pledged | 2,700 | ||
Investment borrowings | 2,189.3 | ||
Fixed rate FHLB borrowings pre-payable | 60.6 | ||
Federal Home Loan Bank Advances | Borrowings due April 2024 at 5.624% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.624% | ||
Federal Home Loan Bank Advances | Borrowings Due May 2024 at 5.672% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 22 | ||
Interest rate | 5.672% | ||
Federal Home Loan Bank Advances | Borrowings Due June 2024 at 5.645% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.645% | ||
Federal Home Loan Bank Advances | Borrowings Due July 2024 at 1.990% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 15.5 | ||
Interest rate | 1.99% | ||
Federal Home Loan Bank Advances | Borrowings due August 2024 at 0.640% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 27 | ||
Interest rate | 0.64% | ||
Federal Home Loan Bank Advances | Borrowings Due May 2025 at 5.718% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 21.7 | ||
Interest rate | 5.718% | ||
Federal Home Loan Bank Advances | Borrowings Due June 2025 at 2.940% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 18.1 | ||
Interest rate | 2.94% | ||
Federal Home Loan Bank Advances | Borrowings Due June 2025 at 5.970% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 12.5 | ||
Interest rate | 5.97% | ||
Federal Home Loan Bank Advances | Borrowings due September 2025 at 5.750% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 125 | ||
Interest rate | 5.75% | ||
Federal Home Loan Bank Advances | Borrowings due October 2025 at 5.874% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.874% | ||
Federal Home Loan Bank Advances | Borrowings due October 2025 at 5.874% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.874% | ||
Federal Home Loan Bank Advances | Borrowings due October 2025 at 5.828% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 57.7 | ||
Interest rate | 5.828% | ||
Federal Home Loan Bank Advances | Borrowings Due November 2025 at 5.813% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.813% | ||
Federal Home Loan Bank Advances | Borrowings Due December 2025 at 5.986% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 12.5 | ||
Interest rate | 5.986% | ||
Federal Home Loan Bank Advances | Borrowings due January 2026 at 5.906% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.906% | ||
Federal Home Loan Bank Advances | Borrowings due January 2026 at 5.885% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.885% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2026 at 5.788% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.788% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2026 at 6.067% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 15 | ||
Interest rate | 6.067% | ||
Federal Home Loan Bank Advances | Borrowings due May 2026 at 5.678% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 21.8 | ||
Interest rate | 5.678% | ||
Federal Home Loan Bank Advances | Borrowings due May 2026 at 5.670% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.67% | ||
Federal Home Loan Bank Advances | Borrowings due December 2026 at 5.742% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 75 | ||
Interest rate | 5.742% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2027 at 5.809% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 75 | ||
Interest rate | 5.809% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2027 at 5.893% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.893% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2027 at 5.798% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.798% | ||
Federal Home Loan Bank Advances | Borrowings Due February 2027 at 5.784% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.784% | ||
Federal Home Loan Bank Advances | Borrowings due April 2027 at 5.635% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.635% | ||
Federal Home Loan Bank Advances | Borrowings due May 2027 at 5.645% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.645% | ||
Federal Home Loan Bank Advances | Borrowings due June 2027 at 5.770% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.77% | ||
Federal Home Loan Bank Advances | Borrowings due June 2027 at 5.993% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 10 | ||
Interest rate | 5.993% | ||
Federal Home Loan Bank Advances | Borrowings Due July 2027 at 6.005% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 6.005% | ||
Federal Home Loan Bank Advances | Borrowings Due July 2027 at 6.023% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 6.023% | ||
Federal Home Loan Bank Advances | Borrowings Due August 2027 at 6.038% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 6.038% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2028 at 5.778% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 75 | ||
Interest rate | 5.778% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2028 at 5.933% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.933% | ||
Federal Home Loan Bank Advances | Borrowings Due January 2028 at 5.864% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 50 | ||
Interest rate | 5.864% | ||
Federal Home Loan Bank Advances | Borrowings Due February 2028 at 5.898% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 34.5 | ||
Interest rate | 5.898% | ||
Federal Home Loan Bank Advances | Borrowings Due February 2028 at 5.784% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 21 | ||
Interest rate | 5.784% | ||
Federal Home Loan Bank Advances | Borrowings Due February 2028 at 5.804% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 100 | ||
Interest rate | 5.804% | ||
Federal Home Loan Bank Advances | Borrowings Due July 2028 at 5.780% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 15 | ||
Interest rate | 5.78% | ||
Federal Home Loan Bank Advances | Borrowings Due August 2028 at 5.790% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investment borrowings | $ 35 | ||
Interest rate | 5.79% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - IMPACT OF ADOPTION TRANSITION (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Present value of future profits | $ 180.7 | $ 203.7 | $ 180.7 | $ 203.7 | $ 230.1 | $ 259.6 | $ 259.6 | ||||||
Deferred acquisition costs | 1,944.4 | 1,770.9 | 1,944.4 | 1,770.9 | 1,485.8 | ||||||||
Reinsurance receivables | 4,040.7 | 4,223.4 | 4,040.7 | 4,223.4 | |||||||||
Market risk benefit asset | 75.4 | 65.3 | 75.4 | 65.3 | 2.5 | ||||||||
Income tax assets, net | 936.2 | 1,063.4 | 936.2 | 1,063.4 | 806.4 | ||||||||
Total assets | 35,102.5 | 33,133.1 | 35,102.5 | 33,133.1 | |||||||||
Policyholder account balances | 15,667.8 | 15,234.2 | 15,667.8 | 15,234.2 | 12,367.7 | ||||||||
Future policy benefits | 11,928.2 | 11,240.2 | 11,928.2 | 11,240.2 | 15,704.9 | ||||||||
Market risk benefit liability | 7.4 | 11.3 | 7.4 | 11.3 | 114.8 | ||||||||
Liability for life insurance policy claims | 62.1 | 64.1 | 62.1 | 64.1 | |||||||||
Total liabilities | 32,886.9 | 31,364.3 | 32,886.9 | 31,364.3 | |||||||||
Retained earnings | 1,899.8 | 1,691.2 | 1,899.8 | 1,691.2 | |||||||||
Accumulated other comprehensive loss | (1,576.8) | (1,957.3) | (1,576.8) | (1,957.3) | |||||||||
Total shareholders' equity | 2,215.6 | 1,768.8 | 2,215.6 | 1,768.8 | 3,684.7 | 5,484.2 | |||||||
Insurance policy benefits | 2,318.2 | 1,615.4 | 2,188.1 | ||||||||||
Liability for future policy benefits remeasurement loss | 21.2 | 15.6 | 51.3 | ||||||||||
Change in fair value of market risk benefits | (21.3) | (140.2) | (23.1) | ||||||||||
Amortization of deferred acquisition costs and present value of future profits | 227.4 | 212.8 | 198.2 | ||||||||||
Other operating costs and expenses | 1,048.3 | 950.9 | 981.8 | ||||||||||
Total benefits and expenses | 3,790 | 2,760.3 | 3,389.1 | ||||||||||
Income before income taxes | 46.1 | $ 215.6 | $ 96.1 | $ (1) | 48.5 | $ 227.9 | $ 299.8 | $ 240.3 | 356.8 | 816.5 | 733.1 | ||
Income tax expense | 80.3 | 185.9 | 162.8 | ||||||||||
Net income | $ 36.3 | $ 167.3 | $ 73.7 | $ (0.8) | $ 38 | $ 175.9 | $ 233.3 | $ 183.4 | $ 276.5 | $ 630.6 | $ 570.3 | ||
Basic (in USD per share) | $ 0.33 | $ 1.48 | $ 0.64 | $ (0.01) | $ 0.33 | $ 1.54 | $ 2.02 | $ 1.55 | $ 2.44 | $ 5.45 | $ 4.44 | ||
Diluted (in USD per share) | $ 0.32 | $ 1.46 | $ 0.64 | $ (0.01) | $ 0.33 | $ 1.52 | $ 1.99 | $ 1.52 | $ 2.40 | $ 5.36 | $ 4.35 | ||
Previously reported | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Present value of future profits | $ 212.2 | $ 212.2 | 249.4 | 249.4 | |||||||||
Deferred acquisition costs | 1,913.4 | 1,913.4 | 1,027.8 | 1,027.8 | |||||||||
Reinsurance receivables | 4,241.7 | 4,241.7 | 4,584.3 | ||||||||||
Market risk benefit asset | 0 | 0 | 0 | 0 | |||||||||
Income tax assets, net | 1,165.5 | 1,165.5 | 199.4 | 199.4 | |||||||||
Total assets | 33,339.2 | 33,339.2 | 35,339.9 | ||||||||||
Policyholder account balances | 14,858.3 | 14,858.3 | 12,540.6 | 12,540.6 | |||||||||
Future policy benefits | 11,809.1 | 11,809.1 | 11,744.2 | 11,744.2 | |||||||||
Market risk benefit liability | 0 | 0 | 0 | 0 | |||||||||
Liability for life insurance policy claims | 456.5 | 456.5 | 561.8 | ||||||||||
Total liabilities | 31,938.4 | 31,938.4 | 29,855.7 | ||||||||||
Retained earnings | 1,459 | 1,459 | $ 1,127.2 | 752.3 | |||||||||
Accumulated other comprehensive loss | (2,093.1) | (2,093.1) | 1,947.1 | 2,186.1 | |||||||||
Total shareholders' equity | 1,400.8 | 1,400.8 | 5,259.7 | 5,484.2 | |||||||||
Insurance policy benefits | 1,658.3 | 2,190.7 | |||||||||||
Liability for future policy benefits remeasurement loss | 0 | 0 | |||||||||||
Change in fair value of market risk benefits | 0 | 0 | |||||||||||
Amortization of deferred acquisition costs and present value of future profits | 309.6 | 281.1 | |||||||||||
Other operating costs and expenses | 954.6 | 987.3 | |||||||||||
Total benefits and expenses | 3,059.5 | 3,554.5 | |||||||||||
Income before income taxes | 517.3 | 567.7 | |||||||||||
Income tax expense | 120.5 | 126.7 | |||||||||||
Net income | $ 396.8 | $ 441 | |||||||||||
Basic (in USD per share) | $ 3.43 | $ 3.43 | |||||||||||
Diluted (in USD per share) | $ 3.37 | $ 3.36 | |||||||||||
Revision of Prior Period, Accounting Standards Update, Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Present value of future profits | (8.5) | $ (8.5) | |||||||||||
Deferred acquisition costs | (142.5) | (142.5) | |||||||||||
Reinsurance receivables | (18.3) | (18.3) | |||||||||||
Market risk benefit asset | 65.3 | 65.3 | |||||||||||
Income tax assets, net | (102.1) | (102.1) | |||||||||||
Total assets | (206.1) | (206.1) | |||||||||||
Policyholder account balances | 375.9 | 375.9 | |||||||||||
Future policy benefits | (568.9) | (568.9) | |||||||||||
Market risk benefit liability | 11.3 | 11.3 | |||||||||||
Liability for life insurance policy claims | (392.4) | (392.4) | |||||||||||
Total liabilities | (574.1) | (574.1) | |||||||||||
Retained earnings | 232.2 | 232.2 | $ (1.6) | ||||||||||
Accumulated other comprehensive loss | 135.8 | 135.8 | (1,573.4) | ||||||||||
Total shareholders' equity | 368 | 368 | (1,575) | ||||||||||
Insurance policy benefits | (42.9) | (2.6) | |||||||||||
Liability for future policy benefits remeasurement loss | (15.6) | (51.3) | |||||||||||
Change in fair value of market risk benefits | (140.2) | (23.1) | |||||||||||
Amortization of deferred acquisition costs and present value of future profits | (96.8) | (82.9) | |||||||||||
Other operating costs and expenses | (3.7) | (5.5) | |||||||||||
Total benefits and expenses | (299.2) | (165.4) | |||||||||||
Income before income taxes | 299.2 | 165.4 | |||||||||||
Income tax expense | 65.4 | 36.1 | |||||||||||
Net income | $ 233.8 | $ 129.3 | |||||||||||
Basic (in USD per share) | $ 2.02 | $ 1.01 | |||||||||||
Diluted (in USD per share) | $ 1.99 | $ 0.99 | |||||||||||
Effect of adoption | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Present value of future profits | 10.2 | ||||||||||||
Deferred acquisition costs | 458 | ||||||||||||
Reinsurance receivables | 144.1 | ||||||||||||
Market risk benefit asset | 2.5 | ||||||||||||
Income tax assets, net | 607 | ||||||||||||
Total assets | 1,221.8 | ||||||||||||
Policyholder account balances | (172.9) | ||||||||||||
Future policy benefits | 3,960.7 | ||||||||||||
Market risk benefit liability | 114.8 | ||||||||||||
Liability for life insurance policy claims | (470.1) | ||||||||||||
Total liabilities | 3,432.5 | ||||||||||||
Retained earnings | (130.9) | ||||||||||||
Accumulated other comprehensive loss | (2,079.8) | ||||||||||||
Total shareholders' equity | (2,210.7) | (2,210.7) | |||||||||||
As recast | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Present value of future profits | 203.7 | $ 203.7 | 259.6 | ||||||||||
Deferred acquisition costs | 1,770.9 | 1,770.9 | 1,485.8 | ||||||||||
Reinsurance receivables | 4,223.4 | 4,223.4 | 4,728.4 | ||||||||||
Market risk benefit asset | 65.3 | 65.3 | 2.5 | ||||||||||
Income tax assets, net | 1,063.4 | 1,063.4 | 806.4 | ||||||||||
Total assets | 33,133.1 | 33,133.1 | 36,561.7 | ||||||||||
Policyholder account balances | 15,234.2 | 15,234.2 | 12,367.7 | ||||||||||
Future policy benefits | 11,240.2 | 11,240.2 | 15,704.9 | ||||||||||
Market risk benefit liability | 11.3 | 11.3 | 114.8 | ||||||||||
Liability for life insurance policy claims | 64.1 | 64.1 | 91.7 | ||||||||||
Total liabilities | 31,364.3 | 31,364.3 | 33,288.2 | ||||||||||
Retained earnings | 1,691.2 | 1,691.2 | $ 1,125.6 | 621.4 | |||||||||
Accumulated other comprehensive loss | (1,957.3) | (1,957.3) | 373.7 | 106.3 | |||||||||
Total shareholders' equity | $ 1,768.8 | 1,768.8 | 3,684.7 | $ 3,273.5 | $ 3,273.5 | ||||||||
Insurance policy benefits | 1,615.4 | 2,188.1 | |||||||||||
Liability for future policy benefits remeasurement loss | (15.6) | (51.3) | |||||||||||
Change in fair value of market risk benefits | (140.2) | (23.1) | |||||||||||
Amortization of deferred acquisition costs and present value of future profits | 212.8 | 198.2 | |||||||||||
Other operating costs and expenses | 950.9 | 981.8 | |||||||||||
Total benefits and expenses | 2,760.3 | 3,389.1 | |||||||||||
Income before income taxes | 816.5 | 733.1 | |||||||||||
Income tax expense | 185.9 | 162.8 | |||||||||||
Net income | $ 630.6 | $ 570.3 | |||||||||||
Basic (in USD per share) | $ 5.45 | $ 4.44 | |||||||||||
Diluted (in USD per share) | $ 5.36 | $ 4.35 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - TRANSITION ADJUSTMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Present value of future profits | |||||
Balance | $ 180.7 | $ 203.7 | $ 230.1 | $ 259.6 | $ 259.6 |
Deferred acquisition costs | |||||
Balance | 1,944.4 | 1,770.9 | 1,485.8 | ||
Reinsurance receivables | |||||
Balance | 4,728.4 | ||||
Market risk benefit asset | |||||
Balance | 75.4 | 65.3 | 2.5 | ||
Income tax assets, net | |||||
Income tax assets, net | 936.2 | 1,063.4 | 806.4 | ||
Policyholder account balances | |||||
Balance | 15,667.8 | 15,234.2 | 12,367.7 | ||
Future policy benefits | |||||
Future policy benefits | 11,928.2 | 11,240.2 | 15,704.9 | ||
Market risk benefit liability | |||||
Market risk benefit liability | 7.4 | 11.3 | 114.8 | ||
Liability for policy and contract claims | |||||
Balance | 91.7 | ||||
Shareholders' equity accounts | |||||
Total shareholders' equity | 2,215.6 | 1,768.8 | 3,684.7 | 5,484.2 | |
Accumulated other comprehensive income (loss) | |||||
Shareholders' equity accounts | |||||
Total shareholders' equity | (1,576.8) | (1,957.3) | 373.7 | 106.3 | 2,186.1 |
Retained Earnings | |||||
Shareholders' equity accounts | |||||
Total shareholders' equity | $ 1,899.8 | 1,691.2 | 1,125.6 | 621.4 | 752.3 |
Amounts prior to adoption of ASU 2018-12 | |||||
Present value of future profits | |||||
Balance | 212.2 | 249.4 | 249.4 | ||
Deferred acquisition costs | |||||
Balance | 1,913.4 | 1,027.8 | 1,027.8 | ||
Reinsurance receivables | |||||
Balance | 4,584.3 | ||||
Market risk benefit asset | |||||
Balance | 0 | 0 | 0 | ||
Income tax assets, net | |||||
Income tax assets, net | 1,165.5 | 199.4 | 199.4 | ||
Policyholder account balances | |||||
Balance | 14,858.3 | 12,540.6 | 12,540.6 | ||
Future policy benefits | |||||
Future policy benefits | 11,809.1 | 11,744.2 | 11,744.2 | ||
Market risk benefit liability | |||||
Market risk benefit liability | 0 | 0 | 0 | ||
Liability for policy and contract claims | |||||
Balance | 561.8 | ||||
Shareholders' equity accounts | |||||
Total shareholders' equity | 1,400.8 | 5,259.7 | $ 5,484.2 | ||
Amounts prior to adoption of ASU 2018-12 | Accumulated other comprehensive income (loss) | |||||
Shareholders' equity accounts | |||||
Total shareholders' equity | 2,186.1 | ||||
Amounts prior to adoption of ASU 2018-12 | Retained Earnings | |||||
Shareholders' equity accounts | |||||
Total shareholders' equity | 752.3 | ||||
Effect of adoption | |||||
Present value of future profits | |||||
Balance | (8.5) | ||||
Unwinding amounts related to unrealized gains (losses) | 10.2 | ||||
Deferred acquisition costs | |||||
Balance | (142.5) | ||||
Unwinding amounts related to unrealized gains (losses) | 458 | ||||
Reinsurance receivables | |||||
Changes in measurement of assets | (81.6) | ||||
Change in discount rates | 225.7 | ||||
Market risk benefit asset | |||||
Balance | 65.3 | ||||
Changes in market benefit reserve basis | 2.5 | ||||
Income tax assets, net | |||||
Income tax assets, net | (102.1) | ||||
Tax impacts of changes recognized in accumulated other comprehensive income | 570.3 | ||||
Tax impacts of changes recognized in retained earnings | 36.7 | ||||
Policyholder account balances | |||||
Balance | 375.9 | ||||
Changes in classification of liabilities | (172.9) | ||||
Future policy benefits | |||||
Future policy benefits | (568.9) | ||||
Unwinding amounts related to unrealized gains (losses) | (197.5) | ||||
Changes in remeasurement of future policy benefits | 31.1 | ||||
Changes in classification of liabilities | 643 | ||||
Reclass to market risk benefit liability | (66.6) | ||||
Change in discount rates | 3,550.7 | ||||
Market risk benefit liability | |||||
Market risk benefit liability | 11.3 | ||||
Reclass to market risk benefit liability | 66.6 | ||||
Changes in market risk benefit reserve basis | 48.2 | ||||
Liability for policy and contract claims | |||||
Changes in classification of liabilities | (470.1) | ||||
Shareholders' equity accounts | |||||
Total shareholders' equity | $ 368 | $ (1,575) | |||
Effect of adoption | Accumulated other comprehensive income (loss) | |||||
Shareholders' equity accounts | |||||
Unwinding amounts related to unrealized gains (losses) | 665.7 | ||||
Changes in measurement of assets and liabilities | 0 | ||||
Change in market risk benefit reserve basis | 9.2 | ||||
Tax impacts of changes recognized in retained earnings | 0 | ||||
Change in discount rates | (3,325) | ||||
Tax impacts of changes recognized in accumulated other comprehensive income | 570.3 | ||||
Effect of adoption | Retained Earnings | |||||
Shareholders' equity accounts | |||||
Unwinding amounts related to unrealized gains (losses) | 0 | ||||
Changes in measurement of assets and liabilities | (112.7) | ||||
Change in market risk benefit reserve basis | (54.9) | ||||
Tax impacts of changes recognized in retained earnings | 36.7 | ||||
Change in discount rates | 0 | ||||
Tax impacts of changes recognized in accumulated other comprehensive income | $ 0 |
INVESTMENTS - SCHEDULE OF FIXED
INVESTMENTS - SCHEDULE OF FIXED MATURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | $ 23,699.2 | |||
Allowance for credit losses | (42.9) | $ (56) | $ (7.6) | $ (2.2) |
Estimated fair value | 21,506.2 | 20,353.4 | ||
Below-investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Estimated fair value | 1,236.7 | |||
Corporate securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Allowance for credit losses | (41.7) | (54.4) | (7.4) | (1.9) |
Corporate securities | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 12,590.8 | 13,043.6 | ||
Gross unrealized gains | 73 | 28.9 | ||
Gross unrealized losses | (1,347.8) | (1,858.4) | ||
Allowance for credit losses | (26.6) | (37) | ||
Estimated fair value | 11,289.4 | 11,177.1 | ||
Corporate securities | Below-investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 596.1 | 605.5 | ||
Gross unrealized gains | 1.7 | 1 | ||
Gross unrealized losses | (34.6) | (53.5) | ||
Allowance for credit losses | (15.1) | (17.4) | ||
Estimated fair value | 548.1 | 535.6 | ||
United States Treasury securities and obligations of United States government corporations and agencies | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 207.6 | 171.7 | ||
Gross unrealized gains | 0.1 | 0 | ||
Gross unrealized losses | (13.3) | (13) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 194.4 | 158.7 | ||
States and political subdivisions | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Allowance for credit losses | (0.7) | (0.9) | 0 | (0.3) |
States and political subdivisions | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 2,887.2 | 2,836.3 | ||
Gross unrealized gains | 31.3 | 19.3 | ||
Gross unrealized losses | (360.2) | (476) | ||
Allowance for credit losses | (0.6) | (0.8) | ||
Estimated fair value | 2,557.7 | 2,378.8 | ||
States and political subdivisions | Below-investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 9.6 | 10.6 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (0.5) | (0.8) | ||
Allowance for credit losses | (0.1) | (0.1) | ||
Estimated fair value | 9 | 9.7 | ||
Foreign governments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Allowance for credit losses | (0.4) | (0.4) | (0.2) | 0 |
Foreign governments | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 92.7 | 86.3 | ||
Gross unrealized gains | 1.2 | 0.1 | ||
Gross unrealized losses | (10.4) | (11.3) | ||
Allowance for credit losses | (0.4) | (0.4) | ||
Estimated fair value | 83.1 | 74.7 | ||
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Allowance for credit losses | (0.1) | (0.3) | $ 0 | $ 0 |
Asset-backed securities | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 1,364.5 | 1,312.5 | ||
Gross unrealized gains | 3.9 | 1 | ||
Gross unrealized losses | (92.4) | (130.1) | ||
Allowance for credit losses | (0.1) | (0.3) | ||
Estimated fair value | 1,275.9 | 1,183.1 | ||
Asset-backed securities | Below-investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 111.7 | 123.2 | ||
Gross unrealized gains | 0.2 | 0 | ||
Gross unrealized losses | (15.4) | (19.3) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 96.5 | 103.9 | ||
Agency residential mortgage-backed securities | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 639 | 174.3 | ||
Gross unrealized gains | 9.5 | 1.4 | ||
Gross unrealized losses | (0.5) | (0.7) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 648 | 175 | ||
Non-agency residential mortgage-backed securities | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 1,170.8 | 1,122.6 | ||
Gross unrealized gains | 7 | 6 | ||
Gross unrealized losses | (136.3) | (174.3) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 1,041.5 | 954.3 | ||
Non-agency residential mortgage-backed securities | Below-investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 499.3 | 577.8 | ||
Gross unrealized gains | 28.8 | 34 | ||
Gross unrealized losses | (16.4) | (17.6) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 511.7 | 594.2 | ||
Collateralized loan obligations | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 1,042.5 | 825.2 | ||
Gross unrealized gains | 3.3 | 0.3 | ||
Gross unrealized losses | (13) | (39.6) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 1,032.8 | 785.9 | ||
Commercial mortgage-backed securities | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 2,386.9 | 2,401.3 | ||
Gross unrealized gains | 0.7 | 0.1 | ||
Gross unrealized losses | (240.9) | (254.1) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 2,146.7 | 2,147.3 | ||
Commercial mortgage-backed securities | Below-investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 100.5 | 93.3 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (29.1) | (18.2) | ||
Allowance for credit losses | 0 | 0 | ||
Estimated fair value | 71.4 | 75.1 | ||
Fixed Maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 23,699.2 | 23,384.2 | ||
Gross unrealized gains | 160.7 | 92.1 | ||
Gross unrealized losses | (2,310.8) | (3,066.9) | ||
Allowance for credit losses | (42.9) | (56) | ||
Estimated fair value | 21,506.2 | 20,353.4 | ||
Fixed Maturities | Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 22,382 | 21,973.8 | ||
Gross unrealized gains | 130 | 57.1 | ||
Gross unrealized losses | (2,214.8) | (2,957.5) | ||
Allowance for credit losses | (27.7) | (38.5) | ||
Estimated fair value | 20,269.5 | 19,034.9 | ||
Fixed Maturities | Below-investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | 1,317.2 | 1,410.4 | ||
Gross unrealized gains | 30.7 | 35 | ||
Gross unrealized losses | (96) | (109.4) | ||
Allowance for credit losses | (15.2) | (17.5) | ||
Estimated fair value | $ 1,236.7 | $ 1,318.5 |
INVESTMENTS - SUMMARY OF FIXED
INVESTMENTS - SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 23,699.2 | |
Estimated fair value | $ 21,506.2 | $ 20,353.4 |
Percentage of total estimated fair value | 100% | |
NAIC designation 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 15,159.4 | |
Estimated fair value | $ 13,775.6 | |
Percentage of total estimated fair value | 64% | |
NAIC designation 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 7,801.9 | |
Estimated fair value | $ 7,074 | |
Percentage of total estimated fair value | 32.90% | |
Total NAIC 1 and 2 (investment grade) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 22,961.3 | |
Estimated fair value | $ 20,849.6 | |
Percentage of total estimated fair value | 96.90% | |
NAIC designation 3 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 539.7 | |
Estimated fair value | $ 483.2 | |
Percentage of total estimated fair value | 2.30% | |
NAIC designation 4 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 154 | |
Estimated fair value | $ 144.8 | |
Percentage of total estimated fair value | 0.70% | |
NAIC designation 5 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 34.2 | |
Estimated fair value | $ 26.1 | |
Percentage of total estimated fair value | 0.10% | |
NAIC designation 6 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 10 | |
Estimated fair value | $ 2.5 | |
Percentage of total estimated fair value | 0% | |
Total NAIC 3,4,5 and 6 (below-investment grade) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 737.9 | |
Estimated fair value | $ 656.6 | |
Percentage of total estimated fair value | 3.10% |
INVESTMENTS - NARRATIVE (Detail
INVESTMENTS - NARRATIVE (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) state loan mortgage_loan investment | Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, available-for-sale at amortized cost | $ 23,699.2 | $ 23,384.2 | |
Estimated fair value | 21,506.2 | 20,353.4 | |
Amortized cost | 23,699.2 | ||
Amortized cost of fixed maturity investments not accruing investment income | 10 | ||
Carrying value of fixed maturity investments not accruing investment income | 2.5 | ||
Net realized investment gains (losses) | (69) | (135.4) | $ 19.1 |
Change in allowance for credit losses | 8.1 | (52.6) | 12.2 |
Value of available for sale securities sold | 712.2 | 1,651.5 | 493.5 |
Estimated fair value | $ 6,824.5 | ||
Percent of fixed maturities | 31.70% | ||
Number of additional states greater than specified percentage of mortgage loan balance | state | 0 | ||
Assets held by insurance regulators | $ 38 | $ 37.2 | |
Number of investments in excess of 10% of shareholders' equity | investment | 0 | 0 | |
Commercial Portfolio Segment | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of mortgage loans in foreclosure | mortgage_loan | 0 | ||
Amortized cost of loans | $ 1,457.5 | ||
Fair value of loans | $ 1,305.1 | ||
Residential Portfolio Segment | Financial Asset, Past Due | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of mortgage loans noncurrent | loan | 10 | ||
Amortized cost of loans | $ 4.9 | ||
Residential Portfolio Segment | Financial Asset, Past Due | Foreclosure | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of mortgage loans noncurrent | loan | 6 | ||
Amortized cost of loans | $ 2.4 | ||
Minimum | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of mortgage loan balance | 5% | ||
California | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of mortgage loan balance | 16% | ||
Maryland | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of mortgage loan balance | 8% | ||
WISCONSIN | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of mortgage loan balance | 6% | ||
INDIANA | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of mortgage loan balance | 6% | ||
Corporate securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized losses on sale | $ 48.8 | $ 70.9 | 19.5 |
Other Investments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized losses on sale | 3.4 | 9.1 | 0.9 |
Residential Mortgage | Total amortized cost | |||
Debt Securities, Available-for-sale [Line Items] | |||
Mortgage loans | 622 | ||
Residential Mortgage | Estimated fair value | |||
Debt Securities, Available-for-sale [Line Items] | |||
Mortgage loans | 621.8 | ||
Non-agency residential mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized losses on sale | 16.5 | ||
States and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized losses on sale | 7.5 | ||
Fixed indexed annuities - embedded derivative | |||
Debt Securities, Available-for-sale [Line Items] | |||
Increase (decreases) in fair value of certain fixed maturity investments with embedded derivatives | (8.5) | (45.9) | (4) |
Reinsurance Contract | Embedded derivative related to modified coinsurance agreement | |||
Debt Securities, Available-for-sale [Line Items] | |||
Increase (decreases) in fair value of certain fixed maturity investments with embedded derivatives | 0.3 | (16.1) | (3.1) |
Marketable Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Net realized investment gains (losses) | (68.7) | (9.6) | 24.2 |
Equity Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Net realized investment gains (losses) | (0.2) | (11.2) | (10.2) |
Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Estimated fair value | 21,506.2 | 20,353.4 | |
Amortized cost | $ 23,699.2 | 23,384.2 | |
Continuous unrealized loss position | 20% | ||
Total fixed maturities, available for sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized losses on sale | $ 58.9 | 104 | $ 20.4 |
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized losses on sale | 6.7 | ||
Estimated fair value | $ 2,218.1 | ||
Percent of fixed maturities | 10.30% | ||
NAIC | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of available-for-sale debt securities | 3.10% | ||
Estimated fair value | $ 656.6 | ||
Available-for-sale securities, percentage of amortized cost | 89% | ||
Amortized cost | $ 737.9 | ||
Below-investment Grade | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, available-for-sale at amortized cost | $ 1,317.2 | ||
Percentage of available-for-sale debt securities | 5.60% | ||
Estimated fair value | $ 1,236.7 | ||
Available-for-sale securities, percentage of amortized cost | 94% | ||
Continuous unrealized loss position | 20% | ||
Below-investment Grade | Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Estimated fair value | $ 1,236.7 | 1,318.5 | |
Amortized cost | 1,317.2 | 1,410.4 | |
Below-investment Grade | Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Estimated fair value | 71.4 | 75.1 | |
Amortized cost | $ 100.5 | $ 93.3 |
INVESTMENTS - SCHEDULE OF INVES
INVESTMENTS - SCHEDULE OF INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due in one year or less | $ 202.1 | |
Due after one year through five years | 2,288.2 | |
Due after five years through ten years | 1,630.4 | |
Due after ten years | 12,263.3 | |
Subtotal | 16,384 | |
Structured securities | 7,315.2 | |
Total | 23,699.2 | |
Estimated fair value | ||
Due in one year or less | 193.3 | |
Due after one year through five years | 2,191.7 | |
Due after five years through ten years | 1,546.4 | |
Due after ten years | 10,750.3 | |
Subtotal | 14,681.7 | |
Structured securities | 6,824.5 | |
Total | $ 21,506.2 | $ 20,353.4 |
INVESTMENTS - SCHEDULE OF INV_2
INVESTMENTS - SCHEDULE OF INVESTMENT INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Fixed maturities | $ 1,142.9 | $ 1,084.1 | $ 962.6 |
Equity securities | 1.7 | 5.9 | 4.3 |
Mortgage loans | 97.4 | 63 | 65 |
Policy loans | 8.6 | 8.4 | 8.2 |
Other invested assets | 8.2 | 38 | 124.8 |
Cash and cash equivalents | 20.9 | 5.9 | 0.3 |
Trading securities | 6.5 | 7.7 | 7.2 |
Option income (loss) | (48.3) | (6.3) | 212 |
Change in value of options | 177.3 | (200.3) | 8.9 |
Other special-purpose portfolios | 114 | 35.8 | 52.4 |
Gross investment income | 1,529.2 | 1,042.2 | 1,445.7 |
Less investment expenses | 29.5 | 26.3 | 25 |
Net investment income | $ 1,499.7 | $ 1,015.9 | $ 1,420.7 |
INVESTMENTS - SCHEDULE OF REALI
INVESTMENTS - SCHEDULE OF REALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Realized investment gains (losses): | |||
Total realized investment gains (losses) | $ (69.3) | $ (17.9) | $ 21.3 |
Change in allowance for credit losses | 8.1 | (52.6) | 12.2 |
Change in fair value of equity securities | 0.4 | (2.9) | (7.3) |
Other changes in fair value | (8.2) | (62) | (7.1) |
Other investment gains (losses) | 0.3 | (117.5) | (2.2) |
Total investment gains (losses) | (69) | (135.4) | 19.1 |
Variable interest entities change in allowance for current expected credit losses | 2.4 | (1.8) | 11.4 |
Increase (decrease) in equity securities, FV-NI, held at end of period | 0.1 | (7.3) | (7.8) |
Change in estimated fair value of trading securities | (2) | (43.3) | (3.1) |
Total fixed maturities, available for sale | |||
Realized investment gains (losses): | |||
Gross realized gains on sales of fixed maturities, available for sale | 13.4 | 99.8 | 51.6 |
Gross realized losses on sales of fixed maturities, available for sale | (58.9) | (104) | (20.4) |
Equity securities, net | (0.6) | (8.3) | (2.9) |
Other, net | $ (23.2) | $ (5.4) | $ (7) |
INVESTMENTS - SCHEDULE OF INV_3
INVESTMENTS - SCHEDULE OF INVESTMENTS IN OUR PORTFOLIO WHICH HAVE BEEN CONTINUOUSLY IN AN UNREALIZED LOSS POSITION EXCEEDING 20% OF AMORTIZED COST PRIOR TO SALE (Details) - Fixed Maturities $ in Millions | Dec. 31, 2023 USD ($) issuer |
Debt Securities, Available-for-sale [Line Items] | |
Less than 6 months prior to sale, Number of issuers | issuer | 5 |
Greater than or equal to 6 months and less than 12 months prior to sale, Number of issuers | issuer | 1 |
Greater than 12 months prior to sale, Number of issuers | issuer | 2 |
Less than 6 months prior to sale, Amortized cost | $ 48.8 |
Greater than or equal to 6 months and less than 12 months prior to sale, Amortized cost | 10.6 |
Greater than 12 months prior to sale, Amortized cost | 3.9 |
Amortized cost, Total | 63.3 |
Less than 6 months prior to sale, Fair value | 26.3 |
Greater than or equal to 6 months and less than 12 months prior to sale, Fair value | 0.1 |
Greater than 12 months prior to sale, Fair value | 2.4 |
Fair value, Total | $ 28.8 |
INVESTMENTS - SCHEDULE OF INV_4
INVESTMENTS - SCHEDULE OF INVESTMENTS WITH UNREALIZED LOSSES CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Amortized cost | |
Due in one year or less | $ 145.8 |
Due after one year through five years | 1,902.1 |
Due after five years through ten years | 1,039.6 |
Due after ten years | 10,540 |
Subtotal | 13,627.5 |
Structured securities | 5,663.4 |
Total | 19,290.9 |
Estimated fair value | |
Due in one year or less | 136.8 |
Due after one year through five years | 1,799.3 |
Due after five years through ten years | 935.2 |
Due after ten years | 8,946.6 |
Subtotal | 11,817.9 |
Structured securities | 5,119.3 |
Total | $ 16,937.2 |
INVESTMENTS - SCHEDULE OF INV_5
INVESTMENTS - SCHEDULE OF INVESTMENTS IN OUR PORTFOLIO RATED BELOW-INVESTMENT GRADE WHICH HAVE BEEN CONTINUOUSLY IN AN UNREALIZED LOSS POSITION EXCEEDING 20% OF THE COST BASIS (Details) $ in Millions | Dec. 31, 2023 USD ($) issuer | Dec. 31, 2022 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Total, unrealized loss | $ (24.5) | $ (835.2) |
Below-investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 6 months, Number of issuers | issuer | 1 | |
Less than 6 months, Cost basis | $ 4.2 | |
Less than 6 months, Unrealized loss | (1.1) | |
Less than 6 months, Estimated fair value | $ 3.1 | |
Greater than or equal to 6 months and less than 12 months, Number of issuers | issuer | 6 | |
Greater than or equal to 6 months and less than 12 months, Cost basis | $ 21.1 | |
Greater than or equal to 6 months and less than 12 months, Unrealized loss | (6.2) | |
Greater than or equal to 6 months and less than 12 months, Estimated fair value | $ 14.9 | |
Greater than 12 months, Number of issuers | issuer | 5 | |
Greater than 12 months, Cost basis | $ 64.5 | |
Greater than 12 months, Unrealized loss | (24.9) | |
Greater than 12 months, Estimated fair value | 39.6 | |
Total, cost basis | 89.8 | |
Total, unrealized loss | (32.2) | |
Total, estimated fair value | $ 57.6 |
INVESTMENTS - SCHEDULE OF UNREA
INVESTMENTS - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value | ||
Less than 12 months | $ 1,169.9 | $ 7,636.9 |
12 months or greater | 10,886.4 | 1,897.5 |
Total | 12,056.3 | 9,534.4 |
Unrealized losses | ||
Less than 12 months | (24.5) | (835.2) |
12 months or greater | (1,365) | (471.6) |
Total | (1,389.5) | (1,306.8) |
Corporate securities | ||
Fair value | ||
Less than 12 months | 332 | 2,830.8 |
12 months or greater | 5,199 | 370.4 |
Total | 5,531 | 3,201.2 |
Unrealized losses | ||
Less than 12 months | (5.3) | (329.4) |
12 months or greater | (640.6) | (129.3) |
Total | (645.9) | (458.7) |
United States Treasury securities and obligations of United States government corporations and agencies | ||
Fair value | ||
Less than 12 months | 126.7 | 134.4 |
12 months or greater | 34.5 | 21.9 |
Total | 161.2 | 156.3 |
Unrealized losses | ||
Less than 12 months | (10.2) | (9.6) |
12 months or greater | (3.1) | (3.4) |
Total | (13.3) | (13) |
States and political subdivisions | ||
Fair value | ||
Less than 12 months | 236.9 | 667 |
12 months or greater | 990 | 132.1 |
Total | 1,226.9 | 799.1 |
Unrealized losses | ||
Less than 12 months | (3.8) | (124.8) |
12 months or greater | (181.2) | (58.5) |
Total | (185) | (183.3) |
Foreign governments | ||
Fair value | ||
Less than 12 months | 6.2 | 35 |
12 months or greater | 21.1 | 2.1 |
Total | 27.3 | 37.1 |
Unrealized losses | ||
Less than 12 months | 0 | (3.5) |
12 months or greater | (2.3) | (0.3) |
Total | (2.3) | (3.8) |
Asset-backed securities | ||
Fair value | ||
Less than 12 months | 46.9 | 914 |
12 months or greater | 1,066.8 | 258.1 |
Total | 1,113.7 | 1,172.1 |
Unrealized losses | ||
Less than 12 months | (0.8) | (90.1) |
12 months or greater | (106) | (53.4) |
Total | (106.8) | (143.5) |
Agency residential mortgage-backed securities | ||
Fair value | ||
Less than 12 months | 73.4 | 59.7 |
12 months or greater | 7.1 | 0 |
Total | 80.5 | 59.7 |
Unrealized losses | ||
Less than 12 months | (0.4) | (0.7) |
12 months or greater | (0.1) | 0 |
Total | (0.5) | (0.7) |
Non-agency residential mortgage-backed securities | ||
Fair value | ||
Less than 12 months | 69 | 861.6 |
12 months or greater | 1,062.9 | 335.4 |
Total | 1,131.9 | 1,197 |
Unrealized losses | ||
Less than 12 months | (1.3) | (89.7) |
12 months or greater | (151.4) | (102.2) |
Total | (152.7) | (191.9) |
Collateralized loan obligations | ||
Fair value | ||
Less than 12 months | 75 | 553 |
12 months or greater | 590.9 | 184.2 |
Total | 665.9 | 737.2 |
Unrealized losses | ||
Less than 12 months | (0.3) | (27.4) |
12 months or greater | (12.7) | (12.2) |
Total | (13) | (39.6) |
Commercial mortgage-backed securities | ||
Fair value | ||
Less than 12 months | 203.8 | 1,581.4 |
12 months or greater | 1,914.1 | 593.3 |
Total | 2,117.9 | 2,174.7 |
Unrealized losses | ||
Less than 12 months | (2.4) | (160) |
12 months or greater | (267.6) | (112.3) |
Total | $ (270) | $ (272.3) |
INVESTMENTS - SUMMARY OF CHANGE
INVESTMENTS - SUMMARY OF CHANGES IN THE ALLOWANCE FOR CURRENT EXPECTED CREDIT LOSSES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | $ 56 | $ 7.6 | $ 2.2 |
Additions for securities for which credit losses were not previously recorded | 7.7 | 50.4 | 6.3 |
Additions (reductions) for securities where an allowance was previously recorded | (7.9) | 10.3 | 0 |
Reduction for securities sold during the period | (12.9) | (12.3) | (0.9) |
Allowance at the end of the period | 42.9 | 56 | 7.6 |
Corporate securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | 54.4 | 7.4 | 1.9 |
Additions for securities for which credit losses were not previously recorded | 7.3 | 48.9 | 6.1 |
Additions (reductions) for securities where an allowance was previously recorded | (7.3) | 10.3 | 0.2 |
Reduction for securities sold during the period | (12.7) | (12.2) | (0.8) |
Allowance at the end of the period | 41.7 | 54.4 | 7.4 |
States and political subdivisions | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | 0.9 | 0 | 0.3 |
Additions for securities for which credit losses were not previously recorded | 0.3 | 0.7 | 0.1 |
Additions (reductions) for securities where an allowance was previously recorded | (0.4) | 0.3 | (0.4) |
Reduction for securities sold during the period | (0.1) | (0.1) | 0 |
Allowance at the end of the period | 0.7 | 0.9 | 0 |
Foreign governments | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | 0.4 | 0.2 | 0 |
Additions for securities for which credit losses were not previously recorded | 0.1 | 0.5 | 0.1 |
Additions (reductions) for securities where an allowance was previously recorded | 0 | (0.3) | 0.2 |
Reduction for securities sold during the period | (0.1) | 0 | (0.1) |
Allowance at the end of the period | 0.4 | 0.4 | 0.2 |
Asset-backed securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | 0.3 | 0 | 0 |
Additions for securities for which credit losses were not previously recorded | 0 | 0.3 | 0 |
Additions (reductions) for securities where an allowance was previously recorded | (0.2) | 0 | 0 |
Reduction for securities sold during the period | 0 | 0 | 0 |
Allowance at the end of the period | $ 0.1 | $ 0.3 | $ 0 |
INVESTMENTS - SCHEDULE OF STRUC
INVESTMENTS - SCHEDULE OF STRUCTURED SECURITIES (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Structured Securities [Line Items] | |
Amortized cost | $ 7,315.2 |
Estimated fair value, Amount | $ 6,824.5 |
Estimated fair value, Percent of fixed maturities | 31.70% |
Asset-backed securities | |
Structured Securities [Line Items] | |
Amortized cost | $ 1,476.2 |
Estimated fair value, Amount | $ 1,372.4 |
Estimated fair value, Percent of fixed maturities | 6.40% |
Agency residential mortgage-backed securities | |
Structured Securities [Line Items] | |
Amortized cost | $ 639 |
Estimated fair value, Amount | $ 648 |
Estimated fair value, Percent of fixed maturities | 3% |
Non-agency residential mortgage-backed securities | |
Structured Securities [Line Items] | |
Amortized cost | $ 1,670.1 |
Estimated fair value, Amount | $ 1,553.2 |
Estimated fair value, Percent of fixed maturities | 7.20% |
Collateralized loan obligations | |
Structured Securities [Line Items] | |
Amortized cost | $ 1,042.5 |
Estimated fair value, Amount | $ 1,032.8 |
Estimated fair value, Percent of fixed maturities | 4.80% |
Commercial mortgage-backed securities | |
Structured Securities [Line Items] | |
Amortized cost | $ 2,487.4 |
Estimated fair value, Amount | $ 2,218.1 |
Estimated fair value, Percent of fixed maturities | 10.30% |
INVESTMENTS - SUMMARY OF WEIGHT
INVESTMENTS - SUMMARY OF WEIGHTED AVERAGE LOAN-TO-VALUE RATIO FOR OUTSTANDING MORTGAGE LOANS (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commercial Portfolio Segment | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 305.6 |
2022 | 311.6 |
2021 | 150.6 |
2020 | 39.1 |
2019 | 73.4 |
Prior | 577.2 |
Total amortized cost | 1,457.5 |
Mortgage loans | 1,305.1 |
Collateral | 4,485.2 |
Less than 60% | Commercial Portfolio Segment | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 239.1 |
2022 | 146.6 |
2021 | 114.8 |
2020 | 33.6 |
2019 | 73.4 |
Prior | 459.5 |
Total amortized cost | 1,067 |
Mortgage loans | 963.8 |
Collateral | $ 3,938.2 |
Less than 60% | Maximum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 60% |
60% to less than 70% | Commercial Portfolio Segment | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 47.1 |
2022 | 87.2 |
2021 | 11 |
2020 | 5.5 |
2019 | 0 |
Prior | 36.4 |
Total amortized cost | 187.2 |
Mortgage loans | 168.9 |
Collateral | $ 287 |
60% to less than 70% | Minimum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 60% |
60% to less than 70% | Maximum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 70% |
70% to less than 80% | Commercial Portfolio Segment | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 19.4 |
2022 | 77.8 |
2021 | 24.8 |
2020 | 0 |
2019 | 0 |
Prior | 39.9 |
Total amortized cost | 161.9 |
Mortgage loans | 140.5 |
Collateral | $ 214.1 |
70% to less than 80% | Minimum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 70% |
70% to less than 80% | Maximum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 80% |
80% to less than 90% | Commercial Portfolio Segment | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 17.3 |
Total amortized cost | 17.3 |
Mortgage loans | 14.3 |
Collateral | $ 20.8 |
80% to less than 90% | Minimum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 80% |
80% to less than 90% | Maximum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 90% |
90% or greater | Commercial Portfolio Segment | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 24.1 |
Total amortized cost | 24.1 |
Mortgage loans | 17.6 |
Collateral | $ 25.1 |
90% or greater | Minimum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan-to-value ratio | 90% |
INVESTMENTS - SUMMARY OF CHAN_2
INVESTMENTS - SUMMARY OF CHANGES IN THE ALLOWANCE FOR CURRENT EXPECTED CREDIT LOSSES RELATED TO MORTGAGE LOANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage loans | |||
Allowance for credit losses at beginning of period | $ 8 | $ 5.6 | $ 11.8 |
Current period provision for expected credit losses | 7.4 | 2.4 | (6.2) |
Allowance for credit losses at end of period | $ 15.4 | $ 8 | $ 5.6 |
FAIR VALUE MEASUREMENTS - NARRA
FAIR VALUE MEASUREMENTS - NARRATIVE (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value of level 3 fixed maturity securities and trading securities valued using broker quotes, percentage | 92% |
Available for sale fixed maturities classified as level 3, investment grade, percent | 79% |
Available for sale fixed maturities classified as level 3, corporate securities, percent | 80% |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS MEASURED ON A RECURRING BASIS - SECURITIES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 |
Assets: | |||
Estimated fair value | $ 21,506.2 | $ 20,353.4 | |
Equity securities - corporate securities | 96.9 | 135.3 | |
Trading securities | 222.7 | 207.9 | |
Investments held by variable interest entities | 768.6 | 1,077.6 | |
Total other invested assets | 1,353.4 | 1,034.7 | |
Market risk benefit asset | 75.4 | 65.3 | $ 2.5 |
Assets held in separate accounts | 3.1 | 2.7 | |
Liabilities: | |||
Market risk benefit liability | 7.4 | 11.3 | $ 114.8 |
Significant unobservable inputs (Level 3) | |||
Assets: | |||
Total assets carried at fair value by category | 377.5 | 418.7 | |
Fair value, Measurements, Recurring | |||
Assets: | |||
Trading securities | 222.7 | 207.9 | |
Investments held by variable interest entities | 768.6 | 1,077.6 | |
Derivatives | 239.2 | 56.7 | |
Residual tranches | 39 | 18.3 | |
Total other invested assets | 278.2 | 75 | |
Market risk benefit asset | 75.4 | 65.3 | |
Assets held in separate accounts | 3.1 | 2.7 | |
Total assets carried at fair value by category | 22,951.1 | 21,917.2 | |
Liabilities: | |||
Market risk benefit liability | 7.4 | 11.3 | |
Embedded derivatives related to fixed indexed annuity products | 1,376.7 | 1,297 | |
Total liabilities carried at fair value by category | 1,384.1 | 1,308.3 | |
Fair value, Measurements, Recurring | Corporate securities | |||
Assets: | |||
Estimated fair value | 11,837.5 | 11,712.7 | |
Equity securities - corporate securities | 96.9 | 135.3 | |
Fair value, Measurements, Recurring | United States Treasury securities and obligations of United States government corporations and agencies | |||
Assets: | |||
Estimated fair value | 194.4 | 158.7 | |
Fair value, Measurements, Recurring | States and political subdivisions | |||
Assets: | |||
Estimated fair value | 2,566.7 | 2,388.5 | |
Fair value, Measurements, Recurring | Foreign governments | |||
Assets: | |||
Estimated fair value | 83.1 | 74.7 | |
Fair value, Measurements, Recurring | Asset-backed securities | |||
Assets: | |||
Estimated fair value | 1,372.4 | 1,287 | |
Trading securities | 32.8 | 15.1 | |
Fair value, Measurements, Recurring | Agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 648 | 175 | |
Trading securities | 3.5 | 0.3 | |
Fair value, Measurements, Recurring | Non-agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 1,553.2 | 1,548.5 | |
Trading securities | 58.5 | 60.7 | |
Fair value, Measurements, Recurring | Collateralized loan obligations | |||
Assets: | |||
Estimated fair value | 1,032.8 | 785.9 | |
Trading securities | 9 | ||
Fair value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 2,218.1 | 2,222.4 | |
Trading securities | 118.9 | 131.8 | |
Fair value, Measurements, Recurring | Total fixed maturities, available for sale | |||
Assets: | |||
Estimated fair value | 21,506.2 | 20,353.4 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | |||
Assets: | |||
Trading securities | 0 | 0 | |
Investments held by variable interest entities | 0 | 0 | |
Derivatives | 0 | 0 | |
Residual tranches | 0 | 0 | |
Total other invested assets | 0 | 0 | |
Market risk benefit asset | 0 | 0 | |
Assets held in separate accounts | 0 | 0 | |
Total assets carried at fair value by category | 24.2 | 59.6 | |
Liabilities: | |||
Market risk benefit liability | 0 | 0 | |
Embedded derivatives related to fixed indexed annuity products | 0 | 0 | |
Total liabilities carried at fair value by category | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Corporate securities | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Equity securities - corporate securities | 24.2 | 59.6 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | United States Treasury securities and obligations of United States government corporations and agencies | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | States and political subdivisions | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Foreign governments | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Asset-backed securities | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Trading securities | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Trading securities | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Non-agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Trading securities | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Collateralized loan obligations | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Trading securities | 0 | ||
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Commercial mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Trading securities | 0 | 0 | |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | Total fixed maturities, available for sale | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | |||
Assets: | |||
Trading securities | 222.7 | 207.4 | |
Investments held by variable interest entities | 768.6 | 1,077.6 | |
Derivatives | 239.2 | 56.7 | |
Residual tranches | 7.5 | 0 | |
Total other invested assets | 246.7 | 56.7 | |
Market risk benefit asset | 0 | 0 | |
Assets held in separate accounts | 3.1 | 2.7 | |
Total assets carried at fair value by category | 22,549.4 | 21,438.9 | |
Liabilities: | |||
Market risk benefit liability | 0 | 0 | |
Embedded derivatives related to fixed indexed annuity products | 0 | 0 | |
Total liabilities carried at fair value by category | 0 | 0 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Corporate securities | |||
Assets: | |||
Estimated fair value | 11,678.2 | 11,584.9 | |
Equity securities - corporate securities | 0 | 0 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | United States Treasury securities and obligations of United States government corporations and agencies | |||
Assets: | |||
Estimated fair value | 194.4 | 158.7 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | States and political subdivisions | |||
Assets: | |||
Estimated fair value | 2,566.7 | 2,388.5 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Foreign governments | |||
Assets: | |||
Estimated fair value | 83.1 | 74.7 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Asset-backed securities | |||
Assets: | |||
Estimated fair value | 1,346.9 | 1,230 | |
Trading securities | 32.8 | 15.1 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 648 | 175 | |
Trading securities | 3.5 | 0.3 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Non-agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 1,553.2 | 1,492.3 | |
Trading securities | 58.5 | 60.2 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Collateralized loan obligations | |||
Assets: | |||
Estimated fair value | 1,032.8 | 782.5 | |
Trading securities | 9 | ||
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Commercial mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 2,205 | 2,207.9 | |
Trading securities | 118.9 | 131.8 | |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | Total fixed maturities, available for sale | |||
Assets: | |||
Estimated fair value | 21,308.3 | 20,094.5 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | |||
Assets: | |||
Trading securities | 0 | 0.5 | |
Investments held by variable interest entities | 0 | 0 | |
Derivatives | 0 | 0 | |
Residual tranches | 31.5 | 18.3 | |
Total other invested assets | 31.5 | 18.3 | |
Market risk benefit asset | 75.4 | 65.3 | |
Assets held in separate accounts | 0 | 0 | |
Total assets carried at fair value by category | 377.5 | 418.7 | |
Liabilities: | |||
Market risk benefit liability | 7.4 | 11.3 | |
Embedded derivatives related to fixed indexed annuity products | 1,376.7 | 1,297 | |
Total liabilities carried at fair value by category | 1,384.1 | 1,308.3 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Corporate securities | |||
Assets: | |||
Estimated fair value | 159.3 | 127.8 | |
Equity securities - corporate securities | 72.7 | 75.7 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | United States Treasury securities and obligations of United States government corporations and agencies | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | States and political subdivisions | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Foreign governments | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Asset-backed securities | |||
Assets: | |||
Estimated fair value | 25.5 | 57 | |
Trading securities | 0 | 0 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 0 | 0 | |
Trading securities | 0 | 0 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Non-agency residential mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 0 | 56.2 | |
Trading securities | 0 | 0.5 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Collateralized loan obligations | |||
Assets: | |||
Estimated fair value | 0 | 3.4 | |
Trading securities | 0 | ||
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Commercial mortgage-backed securities | |||
Assets: | |||
Estimated fair value | 13.1 | 14.5 | |
Trading securities | 0 | 0 | |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Total fixed maturities, available for sale | |||
Assets: | |||
Estimated fair value | $ 197.9 | $ 258.9 |
FAIR VALUE MEASUREMENTS - FAI_2
FAIR VALUE MEASUREMENTS - FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS MEASURED ON A RECURRING BASIS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Other invested assets: | ||
Company-owned life insurance | $ 202.9 | $ 199.1 |
Cash and cash equivalents: | ||
Held by variable interest entities | 114.5 | 69.2 |
Fair value, Measurements, Recurring | Estimated fair value | ||
Assets: | ||
Mortgage loans | 1,926.9 | 1,273.6 |
Policy loans | 128.5 | 121.6 |
Other invested assets: | ||
Company-owned life insurance | 303 | 199.1 |
Cash and cash equivalents: | ||
Unrestricted | 774.5 | 575.7 |
Held by variable interest entities | 114.5 | 69.2 |
Liabilities: | ||
Policyholder account balances | 15,667.8 | 15,234.2 |
Future policy benefits | (274.9) | (491.4) |
Investment borrowings | 2,190.2 | 1,640.5 |
Borrowings related to variable interest entities | 814.8 | 1,066.3 |
Notes payable – direct corporate obligations | 1,097.3 | 1,077 |
Fair value, Measurements, Recurring | Total amortized cost | ||
Assets: | ||
Mortgage loans | 2,064.1 | 1,411.9 |
Policy loans | 128.5 | 121.6 |
Other invested assets: | ||
Company-owned life insurance | 303 | 199.1 |
Cash and cash equivalents: | ||
Unrestricted | 774.5 | 575.7 |
Held by variable interest entities | 114.5 | 69.2 |
Liabilities: | ||
Policyholder account balances | 15,667.8 | 15,234.2 |
Future policy benefits | (274.9) | (491.4) |
Investment borrowings | 2,189.3 | 1,639.5 |
Borrowings related to variable interest entities | 820.8 | 1,104.6 |
Notes payable – direct corporate obligations | 1,140.5 | 1,138.8 |
Fair value, Measurements, Recurring | Quoted prices in active markets for identical assets or liabilities (Level 1) | ||
Assets: | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets: | ||
Company-owned life insurance | 0 | 0 |
Cash and cash equivalents: | ||
Unrestricted | 774.5 | 575.7 |
Held by variable interest entities | 114.5 | 69.2 |
Liabilities: | ||
Policyholder account balances | 0 | 0 |
Future policy benefits | 0 | 0 |
Investment borrowings | 0 | 0 |
Borrowings related to variable interest entities | 0 | 0 |
Notes payable – direct corporate obligations | 0 | 0 |
Fair value, Measurements, Recurring | Significant other observable inputs (Level 2) | ||
Assets: | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets: | ||
Company-owned life insurance | 303 | 199.1 |
Cash and cash equivalents: | ||
Unrestricted | 0 | 0 |
Held by variable interest entities | 0 | 0 |
Liabilities: | ||
Policyholder account balances | 0 | 0 |
Future policy benefits | 0 | 0 |
Investment borrowings | 2,190.2 | 1,640.5 |
Borrowings related to variable interest entities | 814.8 | 1,066.3 |
Notes payable – direct corporate obligations | 1,097.3 | 1,077 |
Fair value, Measurements, Recurring | Significant unobservable inputs (Level 3) | ||
Assets: | ||
Mortgage loans | 1,926.9 | 1,273.6 |
Policy loans | 128.5 | 121.6 |
Other invested assets: | ||
Company-owned life insurance | 0 | 0 |
Cash and cash equivalents: | ||
Unrestricted | 0 | 0 |
Held by variable interest entities | 0 | 0 |
Liabilities: | ||
Policyholder account balances | 15,667.8 | 15,234.2 |
Future policy benefits | (274.9) | (491.4) |
Investment borrowings | 0 | 0 |
Borrowings related to variable interest entities | 0 | 0 |
Notes payable – direct corporate obligations | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - FAI_3
FAIR VALUE MEASUREMENTS - FAIR VALUE ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION (Details) - Fair Value, Inputs, Level 3 - Fair value, Measurements, Recurring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Corporate securities | ||
Assets: | ||
Beginning balance | $ 127.8 | $ 89.7 |
Purchases, sales, issuances and settlements, net | 26.3 | 15.2 |
Total realized and unrealized gains (losses) included in net income | (1.7) | (10.4) |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 8.3 | (35.5) |
Transfers into level 3 | 9.2 | 76.2 |
Transfers out of level 3 | (10.6) | (7.4) |
Ending balance | 159.3 | 127.8 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | (1.7) | (9.8) |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 5.1 | (37.8) |
Corporate securities | Investments held by variable interest entities - corporate securities | ||
Assets: | ||
Beginning balance | 0 | 2.2 |
Purchases, sales, issuances and settlements, net | (2.1) | |
Total realized and unrealized gains (losses) included in net income | (0.1) | |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | |
Transfers into level 3 | 0 | |
Transfers out of level 3 | 0 | |
Ending balance | 0 | |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0 | |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 0 | |
Asset-backed securities | ||
Assets: | ||
Beginning balance | 57 | 26.6 |
Purchases, sales, issuances and settlements, net | (6.3) | 38.1 |
Total realized and unrealized gains (losses) included in net income | (0.2) | (0.1) |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | (1.7) | (10.3) |
Transfers into level 3 | 0 | 2.7 |
Transfers out of level 3 | (23.3) | 0 |
Ending balance | 25.5 | 57 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0 | 0 |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | (1.9) | (10.3) |
Non-agency residential mortgage-backed securities | ||
Assets: | ||
Beginning balance | 56.2 | 0 |
Purchases, sales, issuances and settlements, net | 0 | 14.3 |
Total realized and unrealized gains (losses) included in net income | 0 | (0.3) |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | (24.7) |
Transfers into level 3 | 0 | 66.9 |
Transfers out of level 3 | (56.2) | 0 |
Ending balance | 0 | 56.2 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0 | 0 |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 0 | (24.7) |
Collateralized loan obligations | ||
Assets: | ||
Beginning balance | 3.4 | 5 |
Purchases, sales, issuances and settlements, net | 0 | 0 |
Total realized and unrealized gains (losses) included in net income | 0 | 0 |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | (0.2) |
Transfers into level 3 | 0 | 3.6 |
Transfers out of level 3 | (3.4) | (5) |
Ending balance | 0 | 3.4 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0 | 0 |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 0 | (0.4) |
Commercial mortgage-backed securities | ||
Assets: | ||
Beginning balance | 14.5 | 19 |
Purchases, sales, issuances and settlements, net | 0 | 0 |
Total realized and unrealized gains (losses) included in net income | 0 | 0 |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | (1.4) | (4.5) |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending balance | 13.1 | 14.5 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0 | 0 |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | (1.5) | (4.6) |
Total fixed maturities, available for sale | ||
Assets: | ||
Beginning balance | 258.9 | 140.3 |
Purchases, sales, issuances and settlements, net | 20 | 67.6 |
Total realized and unrealized gains (losses) included in net income | (1.9) | (10.8) |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 5.2 | (75.2) |
Transfers into level 3 | 9.2 | 149.4 |
Transfers out of level 3 | (93.5) | (12.4) |
Ending balance | 197.9 | 258.9 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | (1.7) | (9.8) |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 1.7 | (77.8) |
Equity securities - corporate securities | ||
Assets: | ||
Beginning balance | 75.7 | 11.5 |
Purchases, sales, issuances and settlements, net | (2.1) | 63.9 |
Total realized and unrealized gains (losses) included in net income | (0.9) | 0.3 |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending balance | 72.7 | 75.7 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | (0.5) | 0.4 |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 0 | 0 |
Trading securities - non-agency residential mortgage-backed securities | ||
Assets: | ||
Beginning balance | 0.5 | 3.5 |
Purchases, sales, issuances and settlements, net | 0 | 0 |
Total realized and unrealized gains (losses) included in net income | 0 | (0.3) |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | 0 |
Transfers into level 3 | 0 | 0.8 |
Transfers out of level 3 | (0.5) | (3.5) |
Ending balance | 0 | 0.5 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0 | (0.3) |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 0 | 0 |
Trading securities - commercial mortgage-backed securities | ||
Assets: | ||
Beginning balance | 0 | 12.9 |
Purchases, sales, issuances and settlements, net | 0 | |
Total realized and unrealized gains (losses) included in net income | 0 | |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | |
Transfers into level 3 | 0 | |
Transfers out of level 3 | (12.9) | |
Ending balance | 0 | |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0 | |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 0 | |
Total trading securities | ||
Assets: | ||
Beginning balance | 0.5 | 16.4 |
Purchases, sales, issuances and settlements, net | 0 | |
Total realized and unrealized gains (losses) included in net income | (0.3) | |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | |
Transfers into level 3 | 0.8 | |
Transfers out of level 3 | (16.4) | |
Ending balance | 0.5 | |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | (0.3) | |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | 0 | |
Other invested assets - residual tranches | ||
Assets: | ||
Beginning balance | 18.3 | 0 |
Purchases, sales, issuances and settlements, net | 13.1 | 18.6 |
Total realized and unrealized gains (losses) included in net income | 0.1 | 0 |
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | 0 | (2.1) |
Transfers into level 3 | 0 | 1.8 |
Transfers out of level 3 | 0 | 0 |
Ending balance | 31.5 | 18.3 |
Amount of total gains (losses) for the year included in our net income relating to assets still held as of the reporting date | 0.1 | 0 |
Amount of total gains (losses) included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | $ 0 | $ (2.1) |
FAIR VALUE MEASUREMENTS - FAI_4
FAIR VALUE MEASUREMENTS - FAIR VALUE ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION - ACTIVITY (Details) - Significant unobservable inputs (Level 3) - Fair value, Measurements, Recurring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Corporate securities | ||
Assets: | ||
Purchases | $ 27.7 | $ 27.3 |
Sales | (1.4) | (12.1) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Purchases, sales, issuances and settlements, net | 26.3 | 15.2 |
Corporate securities | Investments held by variable interest entities - corporate securities | ||
Assets: | ||
Purchases | 0 | |
Sales | (2.1) | |
Issuances | 0 | |
Settlements | 0 | |
Purchases, sales, issuances and settlements, net | (2.1) | |
Asset-backed securities | ||
Assets: | ||
Purchases | 0 | 41 |
Sales | (6.3) | (2.9) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Purchases, sales, issuances and settlements, net | (6.3) | 38.1 |
Non-agency residential mortgage-backed securities | ||
Assets: | ||
Purchases | 20.3 | |
Sales | (6) | |
Issuances | 0 | |
Settlements | 0 | |
Purchases, sales, issuances and settlements, net | 0 | 14.3 |
Total fixed maturities, available for sale | ||
Assets: | ||
Purchases | 27.7 | 88.6 |
Sales | (7.7) | (21) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Purchases, sales, issuances and settlements, net | 20 | 67.6 |
Equity securities - corporate securities | ||
Assets: | ||
Purchases | 0 | 67 |
Sales | (2.1) | (3.1) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Purchases, sales, issuances and settlements, net | (2.1) | 63.9 |
Other invested assets - residual tranches | ||
Assets: | ||
Purchases | 13.5 | 18.6 |
Sales | (0.4) | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Purchases, sales, issuances and settlements, net | $ 13.1 | $ 18.6 |
FAIR VALUE MEASUREMENTS - CHANG
FAIR VALUE MEASUREMENTS - CHANGES IN VALUE OF EMBEDDED DERIVATIVES (Details) - Significant unobservable inputs (Level 3) - Fixed Index Annuity Products - Fair value, Measurements, Recurring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Liabilities: | ||
Balance at beginning of the period | $ 1,297 | $ 1,724.1 |
Premiums less benefits | (57.4) | 61.4 |
Change in fair value, net | 137.1 | (488.5) |
Balance at end of the period | $ 1,376.7 | $ 1,297 |
FAIR VALUE MEASUREMENTS - FAI_5
FAIR VALUE MEASUREMENTS - FAIR VALUE INPUTS (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2021 USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Equity securities | $ 96.9 | $ 135.3 | |
Market risk benefit asset | 75.4 | 65.3 | $ 2.5 |
Market risk benefit liability | 7.4 | 11.3 | $ 114.8 |
Significant unobservable inputs (Level 3) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total assets carried at fair value by category | 377.5 | 418.7 | |
Significant unobservable inputs (Level 3) | Discounted cash flow analysis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Market risk benefit asset | 75.4 | 65.3 | |
Market risk benefit liability | 7.4 | 11.3 | |
Significant unobservable inputs (Level 3) | Unadjusted third-party price source | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Other assets categorized as Level 3 | 213.9 | 249 | |
Significant unobservable inputs (Level 3) | Discounted projected embedded derivatives | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed indexed annuity products | $ 1,376.7 | $ 1,297 | |
Significant unobservable inputs (Level 3) | Discount margins/rate | Discounted projected embedded derivatives | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0385 | 0.0377 | |
Significant unobservable inputs (Level 3) | Discount margins/rate | Discounted projected embedded derivatives | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0576 | 0.0548 | |
Significant unobservable inputs (Level 3) | Discount margins/rate | Discounted projected embedded derivatives | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0441 | 0.0447 | |
Significant unobservable inputs (Level 3) | EBITDA Multiple | Market comparables | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Equity Securities inputs | 11.3 | 8.5 | |
Significant unobservable inputs (Level 3) | Percent of recovery expected | Recovery method | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0 | ||
Equity Securities inputs | 0 | 0 | |
Significant unobservable inputs (Level 3) | Percent of recovery expected | Recovery method | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.3500 | ||
Equity Securities inputs | 1 | 1 | |
Significant unobservable inputs (Level 3) | Percent of recovery expected | Recovery method | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.2500 | 0.3500 | |
Equity Securities inputs | 1 | 1 | |
Significant unobservable inputs (Level 3) | Projected portfolio yields | Discounted projected embedded derivatives | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0432 | 0.0430 | |
Significant unobservable inputs (Level 3) | Projected portfolio yields | Discounted projected embedded derivatives | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0492 | 0.0463 | |
Significant unobservable inputs (Level 3) | Projected portfolio yields | Discounted projected embedded derivatives | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0457 | 0.0431 | |
Significant unobservable inputs (Level 3) | Surrender rates | Discounted projected embedded derivatives | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0142 | 0.0190 | |
Significant unobservable inputs (Level 3) | Surrender rates | Discounted projected embedded derivatives | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.2370 | 0.2770 | |
Significant unobservable inputs (Level 3) | Surrender rates | Discounted projected embedded derivatives | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Embedded derivatives related to fixed index annuity products inputs | 0.0692 | 0.0920 | |
Significant unobservable inputs (Level 3) | Surrender rates | Discounted cash flow analysis | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Market risk benefit asset inputs | 0.0142 | 0.0128 | |
Market risk benefit liability inputs | 0.0142 | 0.0128 | |
Significant unobservable inputs (Level 3) | Surrender rates | Discounted cash flow analysis | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Market risk benefit asset inputs | 0.1525 | 0.1105 | |
Market risk benefit liability inputs | 0.1525 | 0.1105 | |
Significant unobservable inputs (Level 3) | Surrender rates | Discounted cash flow analysis | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Market risk benefit asset inputs | 0.0428 | 0.0345 | |
Market risk benefit liability inputs | 0.0428 | 0.0345 | |
Significant unobservable inputs (Level 3) | Measurement Input, Utilization Rate | Discounted cash flow analysis | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Market risk benefit asset inputs | 0.0592 | 0.0678 | |
Market risk benefit liability inputs | 0.0592 | 0.0678 | |
Significant unobservable inputs (Level 3) | Measurement Input, Utilization Rate | Discounted cash flow analysis | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Market risk benefit asset inputs | 0.4762 | 0.6316 | |
Market risk benefit liability inputs | 0.4762 | 0.6316 | |
Significant unobservable inputs (Level 3) | Measurement Input, Utilization Rate | Discounted cash flow analysis | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Market risk benefit asset inputs | 0.2488 | 0.2009 | |
Market risk benefit liability inputs | 0.2488 | 0.2009 | |
Significant unobservable inputs (Level 3) | Corporate securities | Discounted cash flow analysis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities | $ 2.9 | $ 2.9 | |
Significant unobservable inputs (Level 3) | Corporate securities | Recovery method | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities | 2.5 | 3.5 | |
Significant unobservable inputs (Level 3) | Corporate securities | Unadjusted purchase price | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities | $ 1.5 | $ 0.5 | |
Significant unobservable inputs (Level 3) | Corporate securities | Discount margins/rate | Discounted cash flow analysis | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.0223 | ||
Significant unobservable inputs (Level 3) | Corporate securities | Discount margins/rate | Discounted cash flow analysis | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.0394 | ||
Significant unobservable inputs (Level 3) | Corporate securities | Discount margins/rate | Discounted cash flow analysis | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.0222 | 0.0225 | |
Significant unobservable inputs (Level 3) | Asset-backed securities | Discounted cash flow analysis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities | $ 8.6 | $ 21.8 | |
Significant unobservable inputs (Level 3) | Asset-backed securities | Discount margins/rate | Discounted cash flow analysis | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.0250 | ||
Significant unobservable inputs (Level 3) | Asset-backed securities | Discount margins/rate | Discounted cash flow analysis | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.0386 | ||
Significant unobservable inputs (Level 3) | Asset-backed securities | Discount margins/rate | Discounted cash flow analysis | Weighted Average | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Corporate and asset-backed securities inputs | 0.0224 | 0.0330 | |
Significant unobservable inputs (Level 3) | Equity Securities | Recovery method | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Equity securities | $ 0.1 | $ 0.1 | |
Significant unobservable inputs (Level 3) | Equity Securities | Unadjusted purchase price | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Equity securities | 9.2 | 11.7 | |
Significant unobservable inputs (Level 3) | Equity Securities | Market comparables | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Equity securities | $ 63.4 | $ 63.9 |
LIABILITIES FOR INSURANCE PRO_3
LIABILITIES FOR INSURANCE PRODUCTS - SUMMARY OF CHANGES IN LIABILITY FOR FUTURE POLICY BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Future policy benefits | $ 11,928.2 | $ 11,240.2 | $ 15,704.9 | |
Supplemental health | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Present value of expected net premiums ("PVENP"), beginning of period | 2,781.3 | 3,496.8 | ||
Effect of changes in discount rate assumptions, beginning of period | 188.4 | (525.6) | ||
Beginning PVENP at original discount rate | 2,969.7 | 2,971.2 | ||
Effect of changes in cash flow assumptions | (145) | $ 8.3 | ||
Effect of actual variances from expected experience | (57.2) | (79.6) | ||
Adjusted beginning of period PVENP | 2,767.5 | 2,899.9 | ||
Issuances | 261.3 | 298.6 | ||
Interest accrual | 127.4 | 123.6 | ||
Net premiums collected | (351.2) | (352.4) | ||
Ending PVENP at original discount rate | 2,805 | 2,969.7 | ||
Effect of changes in discount rate assumptions, end of period | (86.8) | (188.4) | ||
PVENP, end of period | 2,718.2 | 2,781.3 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Present value of expected future policy benefits ("PVEFPB"), beginning of period | 5,886.8 | 7,688 | ||
Effect of changes in discount rate assumptions, beginning of period | 483.3 | (1,414.8) | ||
Beginning PVEFPB at original discount rate | 6,370.1 | 6,273.2 | ||
Effect of changes in cash flow assumptions | (187) | 7.9 | ||
Effect of actual variances from expected experience | (65.8) | (82.8) | ||
Adjusted beginning of period PVEFPB | 6,117.3 | 6,198.3 | ||
Issuances | 261.7 | 299.1 | ||
Interest accrual | 295 | 289.1 | ||
Benefit payments | (420.9) | (416.4) | ||
Ending PVEFPB at original discount rate | 6,253.1 | 6,370.1 | ||
Effect of changes in discount rate assumptions, end of period | (229.8) | (483.3) | ||
PVEFPB, end of period | 6,023.3 | 5,886.8 | ||
Future policy benefits | 3,305.1 | 3,105.5 | ||
Flooring impact | 0 | 3.5 | ||
Adjusted net liability for future policy benefits | 3,305.1 | 3,109 | ||
Related reinsurance recoverable | (1.3) | (2.6) | ||
Net liability for future policy benefits, net of reinsurance recoverable | 3,303.8 | 3,106.4 | ||
Medicare supplement | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Present value of expected net premiums ("PVENP"), beginning of period | 2,800.6 | 3,454 | ||
Effect of changes in discount rate assumptions, beginning of period | 196.4 | (341.8) | ||
Beginning PVENP at original discount rate | 2,997 | 3,112.2 | ||
Effect of changes in cash flow assumptions | 76 | 0 | ||
Effect of actual variances from expected experience | 20.1 | (61.3) | ||
Adjusted beginning of period PVENP | 3,093.1 | 3,050.9 | ||
Issuances | 328.8 | 286.9 | ||
Interest accrual | 123.3 | 117.2 | ||
Net premiums collected | (436.9) | (458) | ||
Ending PVENP at original discount rate | 3,108.3 | 2,997 | ||
Effect of changes in discount rate assumptions, end of period | (99.1) | (196.4) | ||
PVENP, end of period | 3,009.2 | 2,800.6 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Present value of expected future policy benefits ("PVEFPB"), beginning of period | 3,033.1 | 3,750.5 | ||
Effect of changes in discount rate assumptions, beginning of period | 212 | (373.8) | ||
Beginning PVEFPB at original discount rate | 3,245.1 | 3,376.7 | ||
Effect of changes in cash flow assumptions | 86.5 | 0 | ||
Effect of actual variances from expected experience | 30.3 | (63.8) | ||
Adjusted beginning of period PVEFPB | 3,361.9 | 3,312.9 | ||
Issuances | 328.9 | 286.2 | ||
Interest accrual | 133.9 | 128.4 | ||
Benefit payments | (479.8) | (482.4) | ||
Ending PVEFPB at original discount rate | 3,344.9 | 3,245.1 | ||
Effect of changes in discount rate assumptions, end of period | (108.3) | (212) | ||
PVEFPB, end of period | 3,236.6 | 3,033.1 | ||
Future policy benefits | 227.4 | 232.5 | ||
Flooring impact | 0.5 | 0.3 | ||
Adjusted net liability for future policy benefits | 227.9 | 232.8 | ||
Related reinsurance recoverable | 0 | 0 | ||
Net liability for future policy benefits, net of reinsurance recoverable | 227.9 | 232.8 | ||
Long-term care | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Present value of expected net premiums ("PVENP"), beginning of period | 1,034.1 | 1,313.4 | ||
Effect of changes in discount rate assumptions, beginning of period | 23.2 | (183.2) | ||
Beginning PVENP at original discount rate | 1,057.3 | 1,130.2 | ||
Effect of changes in cash flow assumptions | (32.1) | (17.3) | ||
Effect of actual variances from expected experience | 33.4 | (27.2) | ||
Adjusted beginning of period PVENP | 1,058.6 | 1,085.7 | ||
Issuances | 98.7 | 87.1 | ||
Interest accrual | 49.9 | 50.5 | ||
Net premiums collected | (159.2) | (166) | ||
Ending PVENP at original discount rate | 1,048 | 1,057.3 | ||
Effect of changes in discount rate assumptions, end of period | 7.6 | (23.2) | ||
PVENP, end of period | 1,055.6 | 1,034.1 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Present value of expected future policy benefits ("PVEFPB"), beginning of period | 4,158.1 | 5,501.6 | ||
Effect of changes in discount rate assumptions, beginning of period | 28.5 | (1,291.2) | ||
Beginning PVEFPB at original discount rate | 4,186.6 | 4,210.4 | ||
Effect of changes in cash flow assumptions | (39) | (32.8) | ||
Effect of actual variances from expected experience | 47.2 | (36.1) | ||
Adjusted beginning of period PVEFPB | 4,194.8 | 4,141.5 | ||
Issuances | 99.4 | 87.1 | ||
Interest accrual | 223.9 | 222.9 | ||
Benefit payments | (286.3) | (264.9) | ||
Ending PVEFPB at original discount rate | 4,231.8 | 4,186.6 | ||
Effect of changes in discount rate assumptions, end of period | 132.8 | (28.5) | ||
PVEFPB, end of period | 4,364.6 | 4,158.1 | ||
Future policy benefits | 3,309 | 3,124 | ||
Flooring impact | 0 | 2.8 | ||
Adjusted net liability for future policy benefits | 3,309 | 3,126.8 | ||
Related reinsurance recoverable | (366.6) | (339.2) | ||
Net liability for future policy benefits, net of reinsurance recoverable | 2,942.4 | 2,787.6 | ||
Traditional life | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Present value of expected net premiums ("PVENP"), beginning of period | 2,175 | 2,483.7 | ||
Effect of changes in discount rate assumptions, beginning of period | 137.1 | (239.4) | ||
Beginning PVENP at original discount rate | 2,312.1 | 2,244.3 | ||
Effect of changes in cash flow assumptions | 33 | 9.5 | ||
Effect of actual variances from expected experience | (71) | (102.6) | ||
Adjusted beginning of period PVENP | 2,274.1 | 2,151.2 | ||
Issuances | 378.2 | 479.1 | ||
Interest accrual | 94 | 83 | ||
Net premiums collected | (399.1) | (401.2) | ||
Ending PVENP at original discount rate | 2,347.2 | 2,312.1 | ||
Effect of changes in discount rate assumptions, end of period | (67.6) | (137.1) | ||
PVENP, end of period | 2,279.6 | 2,175 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Present value of expected future policy benefits ("PVEFPB"), beginning of period | 4,417.9 | 5,395.7 | ||
Effect of changes in discount rate assumptions, beginning of period | 336.6 | (767.3) | ||
Beginning PVEFPB at original discount rate | 4,754.5 | 4,628.4 | ||
Effect of changes in cash flow assumptions | 34.5 | 25.2 | ||
Effect of actual variances from expected experience | (86.9) | (120.1) | ||
Adjusted beginning of period PVEFPB | 4,702.1 | 4,533.5 | ||
Issuances | 388.4 | 495 | ||
Interest accrual | 206.7 | 193.6 | ||
Benefit payments | (431.6) | (467.6) | ||
Ending PVEFPB at original discount rate | 4,865.6 | 4,754.5 | ||
Effect of changes in discount rate assumptions, end of period | (170.9) | (336.6) | ||
PVEFPB, end of period | 4,694.7 | 4,417.9 | ||
Future policy benefits | 2,415.1 | 2,242.9 | ||
Flooring impact | 0 | 0 | ||
Adjusted net liability for future policy benefits | 2,415.1 | 2,242.9 | ||
Related reinsurance recoverable | (194.2) | (199.5) | ||
Net liability for future policy benefits, net of reinsurance recoverable | 2,220.9 | 2,043.4 | ||
Other Annuities | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Present value of expected net premiums ("PVENP"), beginning of period | 0 | 0 | ||
Effect of changes in discount rate assumptions, beginning of period | 0 | 0 | ||
Beginning PVENP at original discount rate | 0 | 0 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | 0 | 0 | ||
Adjusted beginning of period PVENP | 0 | 0 | ||
Issuances | 6.9 | 7.1 | ||
Interest accrual | 0 | 0 | ||
Net premiums collected | (6.9) | (7.1) | ||
Ending PVENP at original discount rate | 0 | 0 | ||
Effect of changes in discount rate assumptions, end of period | 0 | 0 | ||
PVENP, end of period | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Present value of expected future policy benefits ("PVEFPB"), beginning of period | 310.9 | 431.9 | ||
Effect of changes in discount rate assumptions, beginning of period | 15.4 | (88.4) | ||
Beginning PVEFPB at original discount rate | 326.3 | 343.5 | ||
Effect of changes in cash flow assumptions | (3.5) | 0 | ||
Effect of actual variances from expected experience | 2.3 | (4.2) | ||
Adjusted beginning of period PVEFPB | 325.1 | $ 339.3 | ||
Issuances | 7 | 7.9 | ||
Interest accrual | 14.8 | 15.2 | ||
Benefit payments | (35) | (36.1) | ||
Ending PVEFPB at original discount rate | 311.9 | 326.3 | ||
Effect of changes in discount rate assumptions, end of period | (3) | (15.4) | ||
PVEFPB, end of period | 308.9 | 310.9 | ||
Future policy benefits | 308.9 | 310.9 | ||
Flooring impact | 0 | 0 | ||
Adjusted net liability for future policy benefits | 308.9 | 310.9 | ||
Related reinsurance recoverable | 0 | 0 | ||
Net liability for future policy benefits, net of reinsurance recoverable | $ 308.9 | $ 310.9 |
LIABILITIES FOR INSURANCE PRO_4
LIABILITIES FOR INSURANCE PRODUCTS - RECONCILIATION OF NET LIABILITY FOR FUTURE POLICY BENEFITS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reserves excluded from rollforward | $ 2,526.9 | $ 2,619.8 |
Deferred profit liability | 64.8 | 55.2 |
Amount of reserves above (below) policyholder account balances | (260.2) | (491.9) |
Future loss reserves | 30.7 | 34.7 |
Future policy benefits | 11,928.2 | 11,240.2 |
Supplemental health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Adjusted net liability for future policy benefits | 3,305.1 | 3,109 |
Medicare supplement | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Adjusted net liability for future policy benefits | 227.9 | 232.8 |
Long-term care | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Adjusted net liability for future policy benefits | 3,309 | 3,126.8 |
Traditional life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Adjusted net liability for future policy benefits | 2,415.1 | 2,242.9 |
Other Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Adjusted net liability for future policy benefits | $ 308.9 | $ 310.9 |
LIABILITIES FOR INSURANCE PRO_5
LIABILITIES FOR INSURANCE PRODUCTS - CHANGES IN MARKET RISK BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 | |
Market Risk Benefit [Roll Forward] | |||
Net liability (asset), beginning of period | $ (54) | $ 86.2 | |
Effect of changes in the instrument-specific credit risk, beginning of period | 12.2 | 12.1 | |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | (41.8) | 98.3 | |
Issuances | (0.2) | (1.6) | |
Interest accrual | 21.3 | 16.5 | |
Attributed fees collected | 0 | 0 | |
Benefit payments | 0 | 0 | |
Effect of changes in interest rates | (13.1) | (159.5) | |
Effect of changes in equity markets | 5.9 | (9.5) | |
Effect of changes in equity index volatility | (23) | 13.4 | |
Actual policyholder behavior different from expected behavior | 3.8 | 1.1 | |
Effect of changes in future expected policyholder behavior - other | (13.1) | (1) | |
Effect of changes in future expected policyholder behavior - risk margin | (1.5) | (4.3) | |
Effect of changes in assumptions | (1.5) | 4.8 | |
Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk | (63.2) | (41.8) | |
Effect of changes in the instrument-specific credit risk, end of period | 4.8 | 12.2 | |
Net liability (asset), end of period | (68) | (54) | |
Reinsurance recoverable, end of period | 0 | 0 | |
Net liability (asset), end of period, net of reinsurance | (68) | (54) | |
Market risk benefit asset | 75.4 | 65.3 | $ 2.5 |
Market risk benefit liability | 7.4 | 11.3 | $ 114.8 |
Net liability (asset) | (68) | (54) | |
Net amount at risk | $ 44.3 | $ 69.7 | |
Weighted average attained age of contract holders | 69 years | 68 years |
LIABILITIES FOR INSURANCE PRO_6
LIABILITIES FOR INSURANCE PRODUCTS - SUMMARY OF AMOUNT OF REVENUE AND INTEREST, TRADITIONAL AND LIMITED PAYMENT CONTRACTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross premiums | $ 2,355.8 | $ 2,361.4 | $ 2,409 |
Interest accretion | 479.7 | 474.9 | 475.4 |
Other Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross premiums | 8.1 | 8.7 | 6.4 |
Interest accretion | 14.8 | 15.2 | 16.1 |
Supplemental health | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross premiums | 705.4 | 691.7 | 688 |
Interest accretion | 167.6 | 165.5 | 163.5 |
Medicare supplement | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross premiums | 608.1 | 644.9 | 705.2 |
Interest accretion | 10.6 | 11.2 | 11.8 |
Long-term care | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross premiums | 325.5 | 323.6 | 323.6 |
Interest accretion | 174 | 172.4 | 170.1 |
Traditional life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Gross premiums | 708.7 | 692.5 | 685.8 |
Interest accretion | $ 112.7 | $ 110.6 | $ 113.9 |
LIABILITIES FOR INSURANCE PRO_7
LIABILITIES FOR INSURANCE PRODUCTS - SUMMARY OF AMOUNT OF UNDISCOUNTED AND DISCOUNTED EXPECTED GROSS PREMIUMS AND EXPECTED FUTURE BENEFITS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Other Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums (Undiscounted) | $ 0 | $ 0 |
Expected future gross premiums (Discounted) | 0 | 0 |
Expected future benefits and expenses (Undiscounted) | 376.7 | 403.4 |
Expected future benefits and expenses (Discounted) | 308.9 | 310.9 |
Supplemental health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums (Undiscounted) | 8,909.8 | 8,921.1 |
Expected future gross premiums (Discounted) | 5,625.9 | 5,455.3 |
Expected future benefits and expenses (Undiscounted) | 10,783.5 | 10,996.1 |
Expected future benefits and expenses (Discounted) | 6,023.3 | 5,886.8 |
Medicare supplement | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums (Undiscounted) | 5,698.1 | 5,524.9 |
Expected future gross premiums (Discounted) | 4,090.4 | 3,898.9 |
Expected future benefits and expenses (Undiscounted) | 4,544.1 | 4,322.8 |
Expected future benefits and expenses (Discounted) | 3,236.6 | 3,033.1 |
Long-term care | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums (Undiscounted) | 3,280.4 | 2,971.9 |
Expected future gross premiums (Discounted) | 2,353.4 | 2,126 |
Expected future benefits and expenses (Undiscounted) | 7,680.6 | 7,482.4 |
Expected future benefits and expenses (Discounted) | 4,364.6 | 4,158.1 |
Traditional life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums (Undiscounted) | 5,580.4 | 5,347.9 |
Expected future gross premiums (Discounted) | 4,069.6 | 3,823.9 |
Expected future benefits and expenses (Undiscounted) | 7,538.5 | 7,332.3 |
Expected future benefits and expenses (Discounted) | $ 4,694.7 | $ 4,417.9 |
LIABILITIES FOR INSURANCE PRO_8
LIABILITIES FOR INSURANCE PRODUCTS - WEIGHTED AVERAGE DURATIONS OF LIABILITY (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Other Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average duration | 9 years 7 months 6 days | 9 years 8 months 12 days |
Supplemental health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average duration | 11 years 4 months 24 days | 11 years 9 months 18 days |
Medicare supplement | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average duration | 6 years 4 months 24 days | 6 years |
Long-term care | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average duration | 10 years 7 months 6 days | 10 years 7 months 6 days |
Traditional life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average duration | 10 years 4 months 24 days | 10 years 1 month 6 days |
LIABILITIES FOR INSURANCE PRO_9
LIABILITIES FOR INSURANCE PRODUCTS - WEIGHTED AVERAGE INTEREST RATE (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Other Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4.81% | 4.75% |
Current discount rate | 5.09% | 5.46% |
Supplemental health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.01% | 5.05% |
Current discount rate | 5.07% | 5.45% |
Medicare supplement | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4.29% | 4.25% |
Current discount rate | 4.92% | 5.26% |
Long-term care | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.68% | 5.68% |
Current discount rate | 5.12% | 5.49% |
Traditional life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4.77% | 4.78% |
Current discount rate | 5.09% | 5.46% |
LIABILITIES FOR INSURANCE PR_10
LIABILITIES FOR INSURANCE PRODUCTS - SUMMARY OF CHANGES IN POLICYHOLDER ACCOUNT BALANCES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 | |
Policyholder Account Balance [Roll Forward] | |||
Policyholder account balances | $ 15,667.8 | $ 15,234.2 | $ 12,367.7 |
Fixed indexed annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period excluding contracts 100% ceded | 9,490.4 | 8,681 | |
Issuances (funds collected from new business) | 1,373.7 | 1,509.2 | |
Premiums received (premiums collected from inforce business) | 0.1 | 0.3 | |
Policy charges | (19.7) | (14.4) | |
Surrenders and withdrawals | (738.3) | (567.5) | |
Benefit payments | (243.9) | (247.8) | |
Interest credited | 112.6 | 107.6 | |
Other | 24.3 | 22 | |
Balance, end of period excluding contracts 100% ceded | 9,999.2 | 9,490.4 | |
Balance, end of period for contracts 100% ceded | 139.4 | 154.4 | |
Policyholder account balances | 10,138.6 | 9,644.8 | |
Balance, end of period, reinsurance ceded | (139.4) | (154.4) | |
Balance, end of period, net of reinsurance | $ 9,999.2 | $ 9,490.4 | |
Weighted average crediting rate | 1.80% | 1.50% | |
Cash surrender value, net of reinsurance | $ 9,326.2 | $ 8,842.7 | |
Fixed interest annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period excluding contracts 100% ceded | 1,663.1 | 1,806.1 | |
Issuances (funds collected from new business) | 197 | 83.7 | |
Premiums received (premiums collected from inforce business) | 2.7 | 3.7 | |
Policy charges | (1) | (0.7) | |
Surrenders and withdrawals | (164.6) | (149.2) | |
Benefit payments | (106.9) | (127.1) | |
Interest credited | 46.1 | 46.1 | |
Other | 0 | 0.5 | |
Balance, end of period excluding contracts 100% ceded | 1,636.4 | 1,663.1 | |
Balance, end of period for contracts 100% ceded | 592.4 | 632.9 | |
Policyholder account balances | 2,228.8 | 2,296 | |
Balance, end of period, reinsurance ceded | (592.4) | (632.9) | |
Balance, end of period, net of reinsurance | $ 1,636.4 | $ 1,663.1 | |
Weighted average crediting rate | 2.80% | 2.80% | |
Cash surrender value, net of reinsurance | $ 1,610 | $ 1,651.7 | |
Other Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period excluding contracts 100% ceded | 127.1 | 131.2 | |
Issuances (funds collected from new business) | 0 | 0 | |
Premiums received (premiums collected from inforce business) | 28.1 | 34.1 | |
Policy charges | 0 | 0 | |
Surrenders and withdrawals | (37.6) | (35) | |
Benefit payments | (5.9) | (5.5) | |
Interest credited | 2.3 | 2.3 | |
Other | (0.9) | 0 | |
Balance, end of period excluding contracts 100% ceded | 113.1 | 127.1 | |
Balance, end of period for contracts 100% ceded | 25.2 | 26.3 | |
Policyholder account balances | 138.3 | 153.4 | |
Balance, end of period, reinsurance ceded | (25.2) | (26.3) | |
Balance, end of period, net of reinsurance | $ 113.1 | $ 127.1 | |
Weighted average crediting rate | 2.40% | 1.90% | |
Cash surrender value, net of reinsurance | $ 113.1 | $ 127.1 | |
Interest-sensitive life | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period excluding contracts 100% ceded | 1,209.6 | 1,163.9 | |
Issuances (funds collected from new business) | 40.8 | 42.1 | |
Premiums received (premiums collected from inforce business) | 203.4 | 192.6 | |
Policy charges | (188.3) | (181.4) | |
Surrenders and withdrawals | (31.1) | (26.7) | |
Benefit payments | (24.7) | (23.9) | |
Interest credited | 46 | 43.1 | |
Other | (0.5) | (0.1) | |
Balance, end of period excluding contracts 100% ceded | 1,255.2 | 1,209.6 | |
Balance, end of period for contracts 100% ceded | 104.6 | 113.4 | |
Policyholder account balances | 1,359.8 | 1,323 | |
Balance, end of period, reinsurance ceded | (122.9) | (133.8) | |
Balance, end of period, net of reinsurance | $ 1,236.9 | $ 1,189.2 | |
Weighted average crediting rate | 3.80% | 3.70% | |
Cash surrender value, net of reinsurance | $ 1,013.6 | $ 964.4 | |
Net amount at risk | 28,241 | 26,296.9 | |
Funding agreements | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period excluding contracts 100% ceded | 1,410.8 | 502 | |
Issuances (funds collected from new business) | 0 | 899 | |
Premiums received (premiums collected from inforce business) | 0 | 0 | |
Policy charges | 0 | 0 | |
Surrenders and withdrawals | (28.6) | (18.7) | |
Benefit payments | 0 | 0 | |
Interest credited | 28.8 | 28.5 | |
Other | 0 | 0 | |
Balance, end of period excluding contracts 100% ceded | 1,411 | 1,410.8 | |
Balance, end of period for contracts 100% ceded | 0 | 0 | |
Policyholder account balances | 1,411 | 1,410.8 | |
Balance, end of period, reinsurance ceded | 0 | 0 | |
Balance, end of period, net of reinsurance | $ 1,411 | $ 1,410.8 | |
Weighted average crediting rate | 2% | 2% | |
Cash surrender value, net of reinsurance | $ 0 | $ 0 | |
Other | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period excluding contracts 100% ceded | 395.5 | 368 | |
Issuances (funds collected from new business) | 0 | 0 | |
Premiums received (premiums collected from inforce business) | 273.4 | 265 | |
Policy charges | 0 | 0 | |
Surrenders and withdrawals | (290) | (240.1) | |
Benefit payments | (0.1) | (0.1) | |
Interest credited | 2.6 | 2.7 | |
Other | (0.4) | 0 | |
Balance, end of period excluding contracts 100% ceded | 381 | 395.5 | |
Balance, end of period for contracts 100% ceded | 10.3 | 10.7 | |
Policyholder account balances | 391.3 | 406.2 | |
Balance, end of period, reinsurance ceded | (24.1) | (25) | |
Balance, end of period, net of reinsurance | $ 367.2 | $ 381.2 | |
Weighted average crediting rate | 0.80% | 0.70% | |
Cash surrender value, net of reinsurance | $ 367.2 | $ 381.2 |
LIABILITIES FOR INSURANCE PR_11
LIABILITIES FOR INSURANCE PRODUCTS - RECONCILIATION OF LIABILITY FOR POLICYHOLDER ACCOUNT BALANCES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 |
Policyholder Account Balance [Line Items] | |||
Balance | $ 15,667.8 | $ 15,234.2 | $ 12,367.7 |
Fixed indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Balance | 10,138.6 | 9,644.8 | |
Fixed interest annuities | |||
Policyholder Account Balance [Line Items] | |||
Balance | 2,228.8 | 2,296 | |
Other Annuities | |||
Policyholder Account Balance [Line Items] | |||
Balance | 138.3 | 153.4 | |
Interest-sensitive life | |||
Policyholder Account Balance [Line Items] | |||
Balance | 1,359.8 | 1,323 | |
Funding agreements | |||
Policyholder Account Balance [Line Items] | |||
Balance | 1,411 | 1,410.8 | |
Other | |||
Policyholder Account Balance [Line Items] | |||
Balance | $ 391.3 | $ 406.2 |
LIABILITIES FOR INSURANCE PR_12
LIABILITIES FOR INSURANCE PRODUCTS - GUARANTEED MINIMUM CREDITING RATES (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2021 USD ($) |
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 15,667.8 | $ 15,234.2 | $ 12,367.7 |
0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,780.7 | 1,290.9 | |
0.00%-2.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 180.8 | 232.4 | |
0.00%-2.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 616.3 | 687.6 | |
0.00%-2.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 240.2 | 96.3 | |
0.00%-2.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 743.4 | 274.6 | |
3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,194.5 | 2,763.6 | |
3.00%-4.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,954.4 | 2,101.9 | |
3.00%-4.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 77.4 | 148 | |
3.00%-4.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 162.2 | 147.1 | |
3.00%-4.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0.5 | 366.6 | |
5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 143 | 124.1 | |
5.00% and greater | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 142.5 | 123.2 | |
5.00% and greater | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0.5 | 0.5 | |
5.00% and greater | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
5.00% and greater | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0.4 | |
Minimum | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 | |
Minimum | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 | |
Minimum | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Minimum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 0% | 0% | |
Minimum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 3% | 3% | |
Minimum | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 5% | 5% | |
Maximum | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 | |
Maximum | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Maximum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 2.99% | 2.99% | |
Maximum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 4.99% | 4.99% | |
Fixed interest annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 2,228.8 | $ 2,296 | |
Fixed interest annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,637.9 | 1,859.2 | |
Fixed interest annuities | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 259.9 | 321.1 | |
Fixed interest annuities | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 225.3 | 42 | |
Fixed interest annuities | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 105.7 | 73.7 | |
Fixed interest annuities | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 676.5 | 568.3 | |
Fixed interest annuities | 0.00%-2.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 112.9 | 159 | |
Fixed interest annuities | 0.00%-2.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 232.6 | 293.7 | |
Fixed interest annuities | 0.00%-2.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 225.3 | 41.9 | |
Fixed interest annuities | 0.00%-2.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 105.7 | 73.7 | |
Fixed interest annuities | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,465.7 | 1,637.5 | |
Fixed interest annuities | 3.00%-4.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 1,438.4 | 1,610 | |
Fixed interest annuities | 3.00%-4.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 27.3 | 27.4 | |
Fixed interest annuities | 3.00%-4.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0.1 | |
Fixed interest annuities | 3.00%-4.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed interest annuities | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 86.6 | 90.2 | |
Fixed interest annuities | 5.00% and greater | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 86.6 | 90.2 | |
Fixed interest annuities | 5.00% and greater | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed interest annuities | 5.00% and greater | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Fixed interest annuities | 5.00% and greater | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 | |
Fixed interest annuities | Minimum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 0% | 0% | |
Fixed interest annuities | Minimum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 3% | 3% | |
Fixed interest annuities | Minimum | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 5% | 5% | |
Fixed interest annuities | Maximum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 2.99% | 2.99% | |
Fixed interest annuities | Maximum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 4.99% | 4.99% | |
Other Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 138.3 | $ 153.4 | |
Other Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 113.3 | 123.4 | |
Other Annuities | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 25 | 30 | |
Other Annuities | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 59.4 | 76.7 | |
Other Annuities | 0.00%-2.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 34.4 | 46.7 | |
Other Annuities | 0.00%-2.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 25 | 30 | |
Other Annuities | 0.00%-2.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 0.00%-2.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 44.9 | 66.2 | |
Other Annuities | 3.00%-4.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 44.9 | 66.2 | |
Other Annuities | 3.00%-4.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 3.00%-4.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 3.00%-4.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 34 | 10.5 | |
Other Annuities | 5.00% and greater | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 34 | 10.5 | |
Other Annuities | 5.00% and greater | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 5.00% and greater | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other Annuities | 5.00% and greater | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 | |
Other Annuities | Minimum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 0% | 0% | |
Other Annuities | Minimum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 3% | 3% | |
Other Annuities | Minimum | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 5% | 5% | |
Other Annuities | Maximum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 2.99% | 2.99% | |
Other Annuities | Maximum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 4.99% | 4.99% | |
Interest-sensitive life | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 1,359.8 | $ 1,323 | |
Interest-sensitive life | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 486 | 432.6 | |
Interest-sensitive life | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 58.5 | 121.1 | |
Interest-sensitive life | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 177.1 | 201.4 | |
Interest-sensitive life | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 638.2 | 567.9 | |
Interest-sensitive life | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 676.7 | 264 | |
Interest-sensitive life | 0.00%-2.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 16.2 | 8.7 | |
Interest-sensitive life | 0.00%-2.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 7.9 | 0 | |
Interest-sensitive life | 0.00%-2.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 14.9 | 54.4 | |
Interest-sensitive life | 0.00%-2.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 637.7 | 200.9 | |
Interest-sensitive life | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 660.9 | 1,036 | |
Interest-sensitive life | 3.00%-4.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 448.1 | 401.8 | |
Interest-sensitive life | 3.00%-4.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 50.1 | 120.6 | |
Interest-sensitive life | 3.00%-4.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 162.2 | 147 | |
Interest-sensitive life | 3.00%-4.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0.5 | 366.6 | |
Interest-sensitive life | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 22.2 | 23 | |
Interest-sensitive life | 5.00% and greater | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 21.7 | 22.1 | |
Interest-sensitive life | 5.00% and greater | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0.5 | 0.5 | |
Interest-sensitive life | 5.00% and greater | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Interest-sensitive life | 5.00% and greater | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0.4 | |
Interest-sensitive life | Minimum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 0% | 0% | |
Interest-sensitive life | Minimum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 3% | 3% | |
Interest-sensitive life | Minimum | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 5% | 5% | |
Interest-sensitive life | Maximum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 2.99% | 2.99% | |
Interest-sensitive life | Maximum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 4.99% | 4.99% | |
Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 391.3 | $ 406.2 | |
Other | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 40.5 | 42.3 | |
Other | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 350.8 | 363.9 | |
Other | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 368.1 | 381.9 | |
Other | 0.00%-2.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 17.3 | 18 | |
Other | 0.00%-2.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 350.8 | 363.9 | |
Other | 0.00%-2.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 0.00%-2.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 23 | 23.9 | |
Other | 3.00%-4.99% | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 23 | 23.9 | |
Other | 3.00%-4.99% | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 3.00%-4.99% | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 3.00%-4.99% | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0.2 | 0.4 | |
Other | 5.00% and greater | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0.2 | 0.4 | |
Other | 5.00% and greater | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 5.00% and greater | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 0 | 0 | |
Other | 5.00% and greater | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 0 | $ 0 | |
Other | Minimum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 0% | 0% | |
Other | Minimum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 3% | 3% | |
Other | Minimum | 5.00% and greater | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 5% | 5% | |
Other | Maximum | 0.00%-2.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 2.99% | 2.99% | |
Other | Maximum | 3.00%-4.99% | |||
Policyholder Account Balance [Line Items] | |||
Range of guaranteed minimum crediting rates | 4.99% | 4.99% | |
Contracts Excluding Fixed Indexed Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 4,118.2 | $ 4,178.6 | |
Contracts Excluding Fixed Indexed Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 2,277.7 | 2,457.5 | |
Contracts Excluding Fixed Indexed Annuities | 1-50 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 694.2 | 836.1 | |
Contracts Excluding Fixed Indexed Annuities | 51-150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 402.4 | 243.4 | |
Contracts Excluding Fixed Indexed Annuities | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 743.9 | 641.6 | |
Fixed indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | 10,138.6 | 9,644.8 | |
Funding agreements | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balances | $ 1,411 | $ 1,410.8 |
INCOME TAXES - SCHEDULE OF COMP
INCOME TAXES - SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current tax expense | $ 68.3 | $ 31.8 | $ 64.1 | ||||||||
Deferred tax expense | 12 | 154.1 | 98.7 | ||||||||
Income tax expense (benefit) | $ 9.8 | $ 48.3 | $ 22.4 | $ (0.2) | $ 10.5 | $ 52 | $ 66.5 | $ 56.9 | $ 80.3 | $ 185.9 | $ 162.8 |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2010 | Jan. 30, 2009 right | |
Operating Loss Carryforwards [Line Items] | ||||||
Carryback of net operating losses to years with a higher statutory corporate rate pursuant to provision of the CARES Act | $ 34,000,000 | |||||
Tax refund due to CARES Act | $ 80,000,000 | |||||
Net deferred tax assets | $ 937,100,000 | $ 1,055,400,000 | ||||
Loss limitation based on income of life insurance company, percent | 35% | |||||
Loss limitation based on loss of non-life entities, percent | 35% | |||||
Federal long-term tax exempt rate | 3.81% | |||||
Ownership change threshold restricting NOL usage | 50% | |||||
Ownership percentage threshold relating to company 382 provision, ownership percentage at which transfers of common stock become void (less than) | 4.99% | |||||
Number of rights for each share | right | 1 | |||||
Ownership percentage threshold relating to company 382 securities | 4.99% | |||||
Net state operating loss carryforwards | $ 2,500,000 | 2,500,000 | ||||
Unrecognized tax benefits | 0 | $ 0 | ||||
Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Net operating loss carryforwards | $ 367,200,000 | |||||
Tax Year 2018 And Later | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Acceleration of the utilization of life NOLs | 375,000,000 | |||||
Restoration of non-life NOLs | 130,000,000 | |||||
Tax Years Before 2021 | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Acceleration of the utilization of life NOLs | 105,000,000 | |||||
Restoration of non-life NOLs | $ 35,000,000 |
INCOME TAXES - SCHEDULE OF EFFE
INCOME TAXES - SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory corporate rate | 21% | 21% | 21% |
Non-taxable income and nondeductible benefits, net | (0.70%) | (0.40%) | (0.50%) |
State taxes | 2.20% | 2.20% | 1.70% |
Effective tax rate | 22.50% | 22.80% | 22.20% |
INCOME TAXES - SCHEDULE OF DEFE
INCOME TAXES - SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 |
Deferred tax assets: | |||
Net federal operating loss carryforwards | $ 77.1 | $ 166 | |
Net state operating loss carryforwards | 2.5 | 2.5 | |
Insurance liabilities | 322.8 | 298.5 | |
Indirect costs allocable to self-constructed real estate assets | 252.9 | 214.8 | |
Accumulated other comprehensive loss | 445.5 | 552.4 | |
Other | 35.6 | 7.3 | |
Gross deferred tax assets | 1,136.4 | 1,241.5 | |
Deferred tax liabilities: | |||
Investments | (36.3) | (37.2) | |
Present value of future profits and deferred acquisition costs | (163) | (148.9) | |
Gross deferred tax liabilities | (199.3) | (186.1) | |
Net deferred tax assets | 937.1 | 1,055.4 | |
Current income taxes prepaid (accrued) | (0.9) | 8 | |
Income tax assets, net | $ 936.2 | $ 1,063.4 | $ 806.4 |
INCOME TAXES - SUMMARY OF OPERA
INCOME TAXES - SUMMARY OF OPERATING LOSS CARRYFORWARDS (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Total federal non-life NOLs | $ 367.2 |
2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 15.7 |
2027 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 10.8 |
2028 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 80.3 |
2029 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 213.2 |
2030 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0.3 |
2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0.2 |
2032 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 44.4 |
2033 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0.6 |
2034 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0.9 |
2035 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 0.8 |
NOTES PAYABLE - DIRECT CORPOR_3
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS - SCHEDULE OF LONG-TERM DEBT INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2020 | Jun. 12, 2019 | May 19, 2015 |
Debt Instrument [Line Items] | |||||
Notes payable – direct corporate obligations | $ 1,140.5 | $ 1,138.8 | |||
Unamortized debt issuance costs | $ (9.5) | (11.2) | |||
Senior Notes | 5.250% Senior Notes due May 2025 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.25% | 5.25% | |||
Notes payable – direct corporate obligations | $ 500 | 500 | |||
Senior Notes | 5.250% Senior Notes due May 2029 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.25% | 5.25% | |||
Notes payable – direct corporate obligations | $ 500 | 500 | |||
Subordinated Debt | 5.125% Subordinated Debentures due 2060 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.125% | 5.125% | |||
Notes payable – direct corporate obligations | $ 150 | 150 | |||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Notes payable – direct corporate obligations | $ 0 | $ 0 |
NOTES PAYABLE - DIRECT CORPOR_4
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS - NARRATIVE (Details) - USD ($) | 1 Months Ended | |||
Jun. 12, 2019 | May 19, 2015 | Nov. 30, 2020 | Dec. 31, 2023 | |
Subordinated Debt | Prior to November 25, 2025 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percent | 102% | |||
5.125% Subordinated Debentures due 2060 | Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 150,000,000 | |||
Interest rate | 5.125% | 5.125% | ||
5.125% Subordinated Debentures due 2060 | Subordinated Debt | On or After November 25, 2025 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 25,000,000 | |||
5.250% Senior Notes due May 2029 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 500,000,000 | |||
Interest rate | 5.25% | 5.25% | ||
Debt default, percentage of principal amount outstanding | 50% | |||
5.250% Senior Notes due May 2029 | Senior Notes | On and After February 28, 2029 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percent | 100% | |||
5.250% Senior Notes due May 2029 | Senior Notes | Change of Control Repurchase Event | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percent | 101% | |||
4.500% Senior Notes due May 2020 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 325,000,000 | |||
Interest rate | 4.50% | |||
5.250% Senior Notes due May 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 500,000,000 | |||
Interest rate | 5.25% | 5.25% | ||
Debt default, percentage of principal amount outstanding | 25% | |||
5.250% Senior Notes due May 2025 | Senior Notes | Change of Control Repurchase Event | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percent | 101% | |||
5.250% Senior Notes due May 2025 | Senior Notes | On and After February 28, 2025 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percent | 100% |
NOTES PAYABLE - DIRECT CORPOR_5
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS - REVOLVING CREDIT AGREEMENT (Details) - Line of Credit - USD ($) | Jul. 16, 2021 | Oct. 13, 2017 | May 19, 2015 | Dec. 31, 2023 | Jul. 15, 2021 |
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 250,000,000 | $ 150,000,000 | |||
Debt Instrument, term | 4 years | ||||
Initial drawing amount | $ 100,000,000 | ||||
Total capitalization percentage | 15% | ||||
Minimum consolidated net worth percentage | 25% | 50% | |||
Potential additional borrowing capacity | $ 100,000,000 | ||||
Debt covenant, required minimum debt to total capitalization ratio | 35% | ||||
Debt covenant, actual debt to total capitalization ratio at period end | 21.50% | ||||
Debt covenant, minimum required consolidated net worth, component one, amount | $ 2,674,000,000 | ||||
Debt covenant, minimum required consolidated net worth, component two, as a percent of net equity proceeds received from issuance and sale of equity interests | 25% | ||||
Debt covenant, actual consolidated net worth at period end | $ 3,792,400,000 | ||||
Debt covenant, required minimum consolidated net worth, amount | $ 2,697,000,000 | ||||
Revolving Credit Facility | Credit Spread Adjustment (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.10% | ||||
Revolving Credit Facility | One - Month Adjusted Term SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 100% | ||||
Revolving Credit Facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 50,000,000 | ||||
Revolving Credit Facility | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.375% | ||||
Revolving Credit Facility | Minimum | SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.375% | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | $ 100,000,000 | ||||
Revolving Credit Facility | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.125% | ||||
Revolving Credit Facility | Maximum | SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.125% | ||||
Bridge Loan | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 5,000,000 | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 5,000,000 |
NOTES PAYABLE - DIRECT CORPOR_6
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS - SCHEDULE OF MATURITIES OF LONG-TERM DEBT (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 0 |
2025 | 500 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 650 |
Direct corporate obligations | $ 1,150 |
LITIGATION AND OTHER LEGAL PR_3
LITIGATION AND OTHER LEGAL PROCEEDINGS - NARRATIVE (Details) $ in Millions | 12 Months Ended | ||||
Mar. 25, 2022 policyholder | Apr. 09, 2019 trust_agreement | Dec. 31, 2023 USD ($) individual | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Number of trust agreements | trust_agreement | 4 | ||||
Number of policyholders | policyholder | 2,000 | ||||
Amount of insurance-related assessment liability | $ 6 | $ 6.2 | |||
Premium tax offset for loss contingency accruals | 9.5 | 10.6 | |||
Insurance-related assessment, expense recognized | 2 | 2.1 | $ 2.7 | ||
Deferred compensation arrangement with individual, recorded liability | 130.9 | 128.8 | |||
Operating leases and other contractual agreements, expense | $ 96.3 | 86.4 | $ 76.3 | ||
Former Chief Executive Officers | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Number of Company's former chief executive officers' retirement benefits guaranteed by subsidiaries | individual | 2 | ||||
Deferred compensation arrangement with individual, recorded liability | $ 19.8 | $ 20.5 |
LITIGATION AND OTHER LEGAL PR_4
LITIGATION AND OTHER LEGAL PROCEEDINGS - INFORMATION RELATED TO RIGHT TO USE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 26.3 | $ 24.3 |
Cash paid for operating lease liability | 23.8 | 25.5 |
Right of use assets obtained in exchange for lease liabilities (non-cash transactions) | 62.4 | 21.7 |
Total right of use assets | $ 85.3 | $ 46.6 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
LITIGATION AND OTHER LEGAL PR_5
LITIGATION AND OTHER LEGAL PROCEEDINGS - SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 22.1 | |
2025 | 16.8 | |
2026 | 13.4 | |
2027 | 10.3 | |
2028 | 8.3 | |
Thereafter | 34.6 | |
Total undiscounted lease payments | 105.5 | |
Less interest | (14.8) | |
Present value of lease liabilities | $ 90.7 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
LITIGATION AND OTHER LEGAL PR_6
LITIGATION AND OTHER LEGAL PROCEEDINGS - WEIGHTED AVERAGE INFORMATION (Details) | Dec. 31, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 7 years |
Weighted average discount rate | 3.79% |
AGENT DEFERRED COMPENSATION P_3
AGENT DEFERRED COMPENSATION PLAN - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement with individual, recorded liability | $ 130.9 | $ 128.8 | |
Net periodic benefit cost | 10.1 | (42.8) | $ (2.6) |
Deferred compensation arrangement with individual, gain (loss) recognized | (3.6) | 48.9 | 8.9 |
Company-owned life insurance | 202.9 | 199.1 | |
Change in value of corporate or bank owned life insurance | 13 | (4.4) | (2.7) |
Deferred compensation arrangement contributions by employer | 6.2 | 6.3 | 6 |
Cost recognized for defined contribution plan | 10.9 | 10.3 | $ 6.7 |
Nonqualified Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement with individual, recorded liability | 83.2 | 62.5 | |
Company-owned life insurance | $ 74.5 | $ 54.9 | |
Minimum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement vesting period | 5 years | ||
Maximum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement vesting period | 10 years |
AGENT DEFERRED COMPENSATION P_4
AGENT DEFERRED COMPENSATION PLAN - SCHEDULE OF ASSUMPTIONS USED (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Benefit obligations: | ||
Discount rate | 5% | 5.25% |
Net periodic cost: | ||
Discount rate | 5.25% | 2.75% |
AGENT DEFERRED COMPENSATION P_5
AGENT DEFERRED COMPENSATION PLAN - SCHEDULE OF EXPECTED BENEFIT PAYMENTS (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Retirement Benefits [Abstract] | |
2024 | $ 8.2 |
2025 | 8.5 |
2026 | 8.8 |
2027 | 8.9 |
2028 | 8.9 |
2029 - 2033 | $ 44.4 |
DERIVATIVES - FAIR VALUE BY BAL
DERIVATIVES - FAIR VALUE BY BALANCE SHEET LOCATION (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Mark to market adjustment on embedded derivative | $ 83 | |
Fixed indexed call options | ||
Derivatives, Fair Value [Line Items] | ||
Fixed indexed call options | 239.2 | $ 56.7 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 221.7 | 38.9 |
Total liabilities | 1,376.7 | 1,297 |
Not Designated as Hedging Instrument | Fixed indexed call options | Other invested assets | ||
Derivatives, Fair Value [Line Items] | ||
Fixed indexed call options | 239.2 | 56.7 |
Not Designated as Hedging Instrument | Reinsurance receivables | Reinsurance receivables | ||
Derivatives, Fair Value [Line Items] | ||
Reinsurance receivables | (17.5) | (17.8) |
Not Designated as Hedging Instrument | Fixed Indexed Annuities - Embedded Derivative | Policyholder Account Balances | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities | 1,651.6 | 1,788.4 |
Not Designated as Hedging Instrument | Fixed Indexed Annuities - Embedded Derivative | Future policy benefits | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities | $ (274.9) | $ (491.4) |
DERIVATIVES - SCHEDULE OF DERIV
DERIVATIVES - SCHEDULE OF DERIVATIVE INSTRUMENTS (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) policy | |
Fixed indexed annuities - embedded derivative | |
Derivative Instrument [Roll Forward] | |
Derivative beginning balance | policy | 123,486 |
Additions | policy | 11,730 |
Maturities/terminations | policy | (9,918) |
Derivative ending balance | policy | 125,298 |
Fixed indexed call options | |
Derivative, Notional Amount [Roll Forward] | |
Derivative notional amount beginning balance | $ | $ 2,784.3 |
Additions | $ | 3,320.9 |
Maturities/terminations | $ | (2,837.3) |
Derivative notional amount ending balance | $ | $ 3,267.9 |
DERIVATIVES - SCHEDULE PRE-TAX
DERIVATIVES - SCHEDULE PRE-TAX GAINS (LOSSES) RECOGNIZED IN EARNINGS FOR DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Gains (losses) on derivative instruments not designated as hedging instruments | $ 129.3 | $ (222.7) | $ 217.8 |
Net pre-tax impact | (7.8) | 265.8 | 241.3 |
Embedded derivative | |||
Derivative [Line Items] | |||
Embedded derivatives related to fixed indexed annuities | 8.5 | 45.9 | 4 |
Embedded derivative | Embedded derivatives related to fixed indexed annuities | |||
Derivative [Line Items] | |||
Embedded derivatives related to fixed indexed annuities | 137.1 | (488.5) | (23.5) |
Investment Income (Loss) | Fixed indexed call options | |||
Derivative [Line Items] | |||
Gains (losses) on derivative instruments not designated as hedging instruments | 129 | (206.6) | 220.9 |
Gain (Loss) on Investments | Embedded derivative | Embedded derivative related to modified coinsurance agreement | |||
Derivative [Line Items] | |||
Gains (losses) on derivative instruments not designated as hedging instruments | $ 0.3 | $ (16.1) | $ (3.1) |
DERIVATIVES - DERIVATIVES WITH
DERIVATIVES - DERIVATIVES WITH MASTER NETTING ARRANGEMENTS (Details) - Fixed indexed call options - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Gross amounts recognized | $ 239.2 | $ 56.7 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of assets presented in the balance sheet | 239.2 | 56.7 |
Non-cash collateral | 37 | 0 |
Cash collateral received | 0 | 0 |
Net amount | $ 202.2 | $ 56.7 |
SHAREHOLDERS' EQUITY - NARRATIV
SHAREHOLDERS' EQUITY - NARRATIVE (Details) $ / shares in Units, $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | 60 Months Ended | ||||||||
Apr. 30, 2023 $ / shares | Apr. 30, 2022 $ / shares | Apr. 30, 2021 $ / shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2018 shares | Dec. 31, 2019 | Jan. 30, 2009 right | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock repurchased and retired during period (in shares) | shares | 6,600,000 | 7,600,000 | 16,600,000 | |||||||||
Common stock repurchased | $ 165.1 | $ 180 | $ 402.4 | |||||||||
Stock repurchase program, remaining repurchase authorized amount | $ 521.8 | 521.8 | ||||||||||
Dividends, common stock, cash | $ 67.9 | $ 65 | $ 66.1 | $ 67.9 | $ 65 | $ 66.1 | ||||||
Dividends (in USD per share) | $ / shares | $ 0.14 | $ 0.13 | $ 0.12 | $ 0.15 | $ 0.14 | $ 0.13 | $ 0.59 | $ 0.55 | $ 0.51 | |||
Available for future grant (in shares) | shares | 4,100,000 | 5,600,000 | 7,800,000 | 4,100,000 | 5,600,000 | 7,800,000 | ||||||
Options granted (in shares) | shares | 0 | 0 | 0 | |||||||||
Issuance of common stock | $ 9.2 | $ 10.4 | $ 18.4 | |||||||||
Number of rights for each share | right | 1 | |||||||||||
Price of junior preferred stock (per 1/1000 of a share) (in USD per share) | $ / shares | $ 110 | $ 110 | ||||||||||
Junior preferred stock right becomes exercisable when a person or group becomes owner of stated percentage (more than) | 4.99% | |||||||||||
Number of shares purchased by each right | shares | 0.001 | 0.001 | ||||||||||
Series F Preferred Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Series F junior participating preferred stock par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Five Year Vesting | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options granted (in shares) | shares | 1,600,000 | |||||||||||
Employee Stock Option | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration period | 10 years | |||||||||||
Allocated share-based compensation expense | $ 0.3 | 0.9 | 1.6 | |||||||||
Allocated share-based compensation expense, net of tax | $ 0.2 | $ 0.7 | $ 1.3 | |||||||||
Compensation expense related to stock options reduced both basic and diluted earnings per share (less than) (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Unrecognized compensation expense | $ 0 | $ 0 | ||||||||||
Employee Stock Option | Years 2015 through 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration period | 10 years | |||||||||||
Vesting period | 3 years | |||||||||||
Employee Stock Option | Year 2018 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration period | 10 years | |||||||||||
Vesting period | 5 years | |||||||||||
Restricted Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Allocated share-based compensation expense | $ 10.9 | $ 9.9 | $ 9 | |||||||||
Unrecognized compensation expense | 10.1 | $ 9.8 | $ 10.1 | $ 9.8 | ||||||||
Granted (in shares) | shares | 462,000 | |||||||||||
Granted (in USD per share) | $ / shares | $ 24.93 | $ 23.59 | $ 23.53 | |||||||||
Grant date fair value of performance shares awarded | 11.5 | 12 | $ 10.5 | $ 11.5 | $ 12 | $ 10.5 | ||||||
Weighted average recognition period | 1 year 9 months 18 days | |||||||||||
Fair value of vested shares | $ 10.4 | $ 8.3 | $ 8.4 | |||||||||
Restricted Stock | Directors, Officers, and Employees | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | shares | 500,000 | 500,000 | 400,000 | |||||||||
Performance Shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Allocated share-based compensation expense | $ 11.3 | $ 13.8 | $ 14.6 | |||||||||
Granted (in shares) | shares | 400,000 | 400,000 | 400,000 | |||||||||
Grant date fair value of performance shares awarded | $ 11.9 | $ 10.5 | $ 11.9 | $ 10.5 | ||||||||
Performance unit payout | 200% | 200% | 200% | |||||||||
Performance Shares | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Performance period | 1 year | |||||||||||
Performance Shares | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Performance period | 3 years |
SHAREHOLDERS' EQUITY - SCHEDULE
SHAREHOLDERS' EQUITY - SCHEDULE OF SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Outstanding at the beginning of the year (in shares) | 2,736,000 | 3,411,000 | 4,544,000 |
Options granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (484,000) | (618,000) | (1,023,000) |
Forfeited or terminated (in shares) | (67,000) | (57,000) | (110,000) |
Outstanding at the end of the year (in shares) | 2,185,000 | 2,736,000 | 3,411,000 |
Options exercisable at the end of the year (in shares) | 2,185,000 | 2,540,000 | 2,662,000 |
Weighted average exercise price | |||
Outstanding at the beginning of the year (in USD per share) | $ 19.45 | $ 19.28 | $ 19.01 |
Options granted (in USD per share) | 0 | 0 | 0 |
Exercised (in USD per share) | (19.43) | (18.43) | (18.01) |
Forfeited or terminated (in USD per share) | (19.62) | (20.18) | (19.97) |
Outstanding at the end of the year (in USD per share) | $ 19.45 | $ 19.45 | $ 19.28 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Outstanding, weighted average remaining life | 3 years 10 months 24 days | 4 years 8 months 12 days | 5 years |
Options exercisable at the end of the year, weighted average remaining life | 3 years 10 months 24 days | 4 years 7 months 6 days | 4 years 7 months 6 days |
Exercised, aggregate intrinsic value | $ 2.9 | $ 3.8 | $ 7.8 |
Options outstanding, aggregate intrinsic value | 11.8 | 15.1 | 19.2 |
Options exercisable at the end of the year, aggregate intrinsic value | $ 11.8 | $ 14.1 | $ 15.7 |
SHAREHOLDERS' EQUITY - SCHEDU_2
SHAREHOLDERS' EQUITY - SCHEDULE OF SHARE-BASED COMPENSATION BY EXERCISE PRICE RANGE (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number outstanding (in shares) | shares | 2,185 |
Options exercisable, Number exercisable (in shares) | shares | 2,185 |
$15.08 - $21.06 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise prices, lower range limit (in USD per share) | $ 15.08 |
Range of exercise prices, upper range limit (in USD per share) | $ 21.06 |
Number outstanding (in shares) | shares | 1,925 |
Options outstanding, Remaining life (in years) | 3 years 10 months 24 days |
Options outstanding, Average exercise price (in USD per share) | $ 18.92 |
Options exercisable, Number exercisable (in shares) | shares | 1,925 |
Options exercisable, Average exercise price (in USD per share) | $ 18.92 |
$23.33 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise prices, upper range limit (in USD per share) | $ 23.33 |
Number outstanding (in shares) | shares | 260 |
Options outstanding, Remaining life (in years) | 4 years |
Options outstanding, Average exercise price (in USD per share) | $ 23.33 |
Options exercisable, Number exercisable (in shares) | shares | 260 |
Options exercisable, Average exercise price (in USD per share) | $ 23.33 |
SHAREHOLDERS' EQUITY - SCHEDU_3
SHAREHOLDERS' EQUITY - SCHEDULE OF NONVESTED SHARE ACTIVITY (Details) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Non-vested shares, beginning of year (in shares) | 1,023 | ||
Granted (in shares) | 462 | ||
Vested (in shares) | (483) | ||
Forfeited (in shares) | (14) | ||
Non-vested shares, end of year (in shares) | 988 | 1,023 | |
Weighted average grant date fair value | |||
Non-vested shares, beginning of year (in USD per share) | $ 22.01 | ||
Granted (in USD per share) | 24.93 | $ 23.59 | $ 23.53 |
Vested (in USD per share) | 21.87 | ||
Forfeited (in USD per share) | 24.11 | ||
Non-vested shares, end of year (in USD per share) | $ 23.41 | $ 22.01 |
SHAREHOLDERS' EQUITY - SCHEDU_4
SHAREHOLDERS' EQUITY - SCHEDULE OF PERFORMANCE SHARE-BASED COMPENSATION (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total shareholder return awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Awards outstanding, beginning of period (in shares) | 2 | 203 | 339 |
Granted (in shares) | 0 | 0 | 0 |
Additional shares issued pursuant to achieving certain performance criteria (in shares) | 0 | 188 | 0 |
Shares vested (in shares) | (1) | (389) | (81) |
Forfeited (in shares) | 0 | 0 | (55) |
Awards outstanding, end of period (in shares) | 1 | 2 | 203 |
Performance unit payout | 200% | 200% | 200% |
Operating return on equity awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Awards outstanding, beginning of period (in shares) | 611 | 635 | 581 |
Granted (in shares) | 215 | 204 | 209 |
Additional shares issued pursuant to achieving certain performance criteria (in shares) | 221 | 186 | 57 |
Shares vested (in shares) | (443) | (390) | (178) |
Forfeited (in shares) | (9) | (24) | (34) |
Awards outstanding, end of period (in shares) | 595 | 611 | 635 |
Operating earnings per share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Awards outstanding, beginning of period (in shares) | 604 | 425 | 239 |
Granted (in shares) | 216 | 204 | 209 |
Additional shares issued pursuant to achieving certain performance criteria (in shares) | 221 | 0 | 0 |
Shares vested (in shares) | (441) | 0 | 0 |
Forfeited (in shares) | (9) | (25) | (23) |
Awards outstanding, end of period (in shares) | 591 | 604 | 425 |
SHAREHOLDERS' EQUITY - SCHEDU_5
SHAREHOLDERS' EQUITY - SCHEDULE OF EARNINGS PER SHARE RECONCILIATION (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Net income for basic earnings per share | $ 276.5 | $ 630.6 | $ 570.3 |
Shares: | |||
Weighted average shares outstanding for basic earnings per share (in shares) | 113,275 | 115,733 | 128,400 |
Effect of dilutive securities on weighted average shares: | |||
Amounts related to employee benefit plans (in shares) | 1,849 | 1,984 | 2,726 |
Weighted average shares outstanding for diluted earnings per share (in shares) | 115,124 | 117,717 | 131,126 |
SHAREHOLDERS' EQUITY - Schedu_6
SHAREHOLDERS' EQUITY - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Net unrealized losses on investments having no allowance for credit losses | $ (1,235.2) | $ (1,247) |
Unrealized losses on investments with an allowance for credit losses | (931) | (1,780.7) |
Change in discount rates for liability for future policy benefits | 133.4 | 500.7 |
Change in instrument-specific credit risk for market risk benefits | 4.8 | 12.2 |
Deferred income tax assets | 451.2 | 557.5 |
Accumulated other comprehensive loss | $ (1,576.8) | $ (1,957.3) |
OTHER OPERATING STATEMENT DAT_2
OTHER OPERATING STATEMENT DATA - SCHEDULE OF INSURANCE POLICY INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Direct premiums collected | $ 4,574.9 | $ 4,619.7 | $ 4,457.7 |
Reinsurance assumed | 16.6 | 18.6 | 20.7 |
Reinsurance ceded | (194.6) | (214.6) | (231.3) |
Premiums collected, net of reinsurance | 4,396.9 | 4,423.7 | 4,247.1 |
Change in unearned premiums | 18.5 | 9.8 | 0.9 |
Less premiums on interest-sensitive life and products without mortality and morbidity risk which are recorded as additions to insurance liabilities | (2,111.7) | (2,123.6) | (1,905.2) |
Premiums on traditional products with mortality or morbidity risk | 2,303.7 | 2,309.9 | 2,342.8 |
Fees and surrender charges on interest-sensitive products | 201.8 | 189.9 | 180.6 |
Insurance policy income | $ 2,505.5 | 2,499.8 | 2,523.4 |
FABN Program | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Direct premiums collected | $ 899 | $ 499.9 |
OTHER OPERATING STATEMENT DAT_3
OTHER OPERATING STATEMENT DATA - NARRATIVE (Details) | 12 Months Ended |
Dec. 31, 2023 state | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Number of states | 4 |
Percentage of total collected premiums (more than 5%) | 5% |
Present Value of Future Insurance Profits, Percentage of Amortization Expense, Next Five Years [Abstract] | |
2024 | 11% |
2025 | 10% |
2026 | 9% |
2027 | 8% |
2028 | 7% |
Florida | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Percentage of total collected premiums (more than 5%) | 11% |
Pennsylvania | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Percentage of total collected premiums (more than 5%) | 6% |
Iowa | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Percentage of total collected premiums (more than 5%) | 5% |
Texas | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |
Percentage of total collected premiums (more than 5%) | 5% |
OTHER OPERATING STATEMENT DAT_4
OTHER OPERATING STATEMENT DATA - SCHEDULE OF OTHER OPERATING COST AND EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses: | |||
Commission expense | $ 111.1 | $ 114.2 | $ 110.9 |
Salaries and wages | 290.9 | 287.9 | 267.9 |
Other | 646.3 | 548.8 | 603 |
Total other operating costs and expenses | $ 1,048.3 | $ 950.9 | $ 981.8 |
OTHER OPERATING STATEMENT DAT_5
OTHER OPERATING STATEMENT DATA - SCHEDULE OF CHANGES IN DEFERRED ACQUISITION COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | $ 1,690.4 | $ 1,553.3 | $ 1,426.4 |
Capitalizations | 353.5 | 313.5 | 286.9 |
Amortization expense | (192.6) | (176.4) | (160) |
End of period | 1,851.3 | 1,690.4 | 1,553.3 |
Fixed indexed annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 365.6 | 313 | 266 |
Capitalizations | 88.9 | 92.8 | 81.5 |
Amortization expense | (46.9) | (40.2) | (34.5) |
End of period | 407.6 | 365.6 | 313 |
Fixed interest annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 19.6 | 19 | 20.6 |
Capitalizations | 11.3 | 4.1 | 2.1 |
Amortization expense | (3.9) | (3.5) | (3.7) |
End of period | 27 | 19.6 | 19 |
Supplemental health | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 378.8 | 357.5 | 339 |
Capitalizations | 60.6 | 50.5 | 46.2 |
Amortization expense | (31.4) | (29.2) | (27.7) |
End of period | 408 | 378.8 | 357.5 |
Medicare supplement | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 161.2 | 170.2 | 169.5 |
Capitalizations | 24.1 | 20.7 | 28.2 |
Amortization expense | (27.8) | (29.7) | (27.5) |
End of period | 157.5 | 161.2 | 170.2 |
Long-term care | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 137.9 | 136.4 | 133.4 |
Capitalizations | 17.5 | 16.8 | 17.9 |
Amortization expense | (15.1) | (15.3) | (14.9) |
End of period | 140.3 | 137.9 | 136.4 |
Interest-sensitive life | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 212.2 | 196.3 | 179.9 |
Capitalizations | 36.8 | 29.8 | 30.9 |
Amortization expense | (14.5) | (13.9) | (14.5) |
End of period | 234.5 | 212.2 | 196.3 |
Traditional life | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 409.1 | 357.6 | 318 |
Capitalizations | 114.3 | 94.6 | 76.7 |
Amortization expense | (51.5) | (43.1) | (37.1) |
End of period | 471.9 | 409.1 | 357.6 |
Funding agreements | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 6 | 3.3 | 0 |
Capitalizations | 0 | 4.2 | 3.4 |
Amortization expense | (1.5) | (1.5) | (0.1) |
End of period | $ 4.5 | $ 6 | $ 3.3 |
OTHER OPERATING STATEMENT DAT_6
OTHER OPERATING STATEMENT DATA - SCHEDULE OF CHANGES IN PRESENT VALUE OF FUTURE INSURANCE PROFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning of period | $ 203.7 | $ 230.1 | $ 259.6 |
Amortization expense | (23) | (26.4) | (29.5) |
End of period | 180.7 | 203.7 | 230.1 |
Supplemental health | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning of period | 154 | 168.1 | 183.1 |
Amortization expense | (13) | (14.1) | (15) |
End of period | 141 | 154 | 168.1 |
Medicare supplement | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning of period | 27.5 | 36.5 | 47 |
Amortization expense | (6.9) | (9) | (10.5) |
End of period | 20.6 | 27.5 | 36.5 |
Long-term care | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning of period | 6.2 | 7.3 | 8.6 |
Amortization expense | (1) | (1.1) | (1.3) |
End of period | 5.2 | 6.2 | 7.3 |
Traditional life | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning of period | 14.8 | 16.9 | 19.3 |
Amortization expense | (1.9) | (2.1) | (2.4) |
End of period | 12.9 | 14.8 | 16.9 |
Fixed indexed annuities | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning of period | 0.8 | 0.9 | 1.1 |
Amortization expense | (0.1) | (0.1) | (0.2) |
End of period | 0.7 | 0.8 | 0.9 |
Fixed interest annuities | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning of period | 0.4 | 0.4 | 0.5 |
Amortization expense | (0.1) | 0 | (0.1) |
End of period | $ 0.3 | $ 0.4 | $ 0.4 |
OTHER OPERATING STATEMENT DAT_7
OTHER OPERATING STATEMENT DATA - SCHEDULE OF CHANGES IN SALES INDUCEMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | $ 80.5 | $ 68 | $ 59.4 |
Capitalizations | 24.4 | 22.5 | 17.3 |
Amortization expense | (11.8) | (10) | (8.7) |
End of period | 93.1 | 80.5 | 68 |
Fixed indexed annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 76 | 63 | 53.6 |
Capitalizations | 23.5 | 22.1 | 17.1 |
Amortization expense | (11) | (9.1) | (7.7) |
End of period | 88.5 | 76 | 63 |
Fixed interest annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning of period | 4.5 | 5 | 5.8 |
Capitalizations | 0.9 | 0.4 | 0.2 |
Amortization expense | (0.8) | (0.9) | (1) |
End of period | $ 4.6 | $ 4.5 | $ 5 |
CONSOLIDATED STATEMENT OF CAS_4
CONSOLIDATED STATEMENT OF CASH FLOWS - SCHEDULE OF THE RECONCILIATION FOR NET INCOME PROVIDED BY OPERATING ACTIVITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 36.3 | $ 167.3 | $ 73.7 | $ (0.8) | $ 38 | $ 175.9 | $ 233.3 | $ 183.4 | $ 276.5 | $ 630.6 | $ 570.3 |
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Amortization and depreciation | 267.4 | 248.5 | 236.6 | ||||||||
Income taxes | 21.1 | 152 | 182.6 | ||||||||
Insurance liabilities | 449.7 | (374.7) | 269 | ||||||||
Accrual and amortization of investment income | (170.7) | 138.7 | (347.6) | ||||||||
Deferral of policy acquisition costs | (377.9) | (336) | (304.2) | ||||||||
Net investment (gains) losses | 69 | 135.4 | (19.1) | ||||||||
Other | 47.8 | (99.1) | 10.7 | ||||||||
Net cash from operating activities | 582.9 | 495.4 | 598.3 | ||||||||
Stock options, restricted stock and performance units | $ 23.3 | $ 25.2 | $ 26 |
STATUTORY INFORMATION (BASED _3
STATUTORY INFORMATION (BASED ON NON-GAAP MEASURES) - SCHEDULE OF STATUTORY ACCOUNTING PRACTICES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Insurance [Abstract] | ||
Statutory capital and surplus | $ 1,558.9 | $ 1,849.8 |
Asset valuation reserve | 352.5 | 305.8 |
Interest maintenance reserve | 368.1 | 395.7 |
Total | $ 2,279.5 | $ 2,551.3 |
STATUTORY INFORMATION (BASED _4
STATUTORY INFORMATION (BASED ON NON-GAAP MEASURES) - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus included investments in upstream affiliates | $ 42.6 | $ 42.6 | |
Statutory accounting practices, statutory net income, amount | 105 | 238 | $ 277.5 |
Statutory accounting practices, net realized capital gain (loss), net of income taxes | (26.3) | (25.9) | (11.2) |
Statutory accounting practices, pre-tax amounts for fees and interest paid | $ 190.1 | $ 168.4 | $ 164.2 |
Percentage of statutory capital and surplus, available for dividend distribution without prior approval from regulatory agency | 10% | ||
Amount of dividends paid by insurance subsidiaries | $ 526.5 | ||
Reinsurance transaction contribution amount | 265 | ||
Capital contribution | $ 34.4 | ||
Trended adjusted capital to risk-based capital ratio threshold (less than) | 95% | ||
Bermuda Class C Insurer, minimum solvency margin | $ 0.5 | ||
Bermuda Class C Insurer, minimum solvency margin, percentage of assets (percent) | 1.50% | ||
Bermuda Class C Insurer, minimum solvency margin, percentage of enhanced capital requirement (percent) | 25% | ||
Target capital level percentage | 120% | ||
Statutory economic capital and surplus percentage of enhanced capital requirement (percent) | 150% | ||
Company Plan for Improving Capital Position | Maximum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 100% | ||
Company Plan for Improving Capital Position | Minimum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 75% | ||
Regulatory Authority Special Examination | Maximum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 75% | ||
Regulatory Authority Special Examination | Minimum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 50% | ||
Regulatory Authority, Any Action Deemed Necessary | Maximum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 50% | ||
Regulatory Authority, Any Action Deemed Necessary | Minimum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 35% | ||
Regulatory Authority Control | Maximum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 35% | ||
Trend Test | Maximum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 150% | ||
Trend Test | Minimum | |||
Statutory Accounting Practices [Line Items] | |||
Adjusted capital to risk-based capital ratio | 100% |
BUSINESS SEGMENTS BUSINESS SEGM
BUSINESS SEGMENTS BUSINESS SEGMENTS - NARRATIVE (Details) | 12 Months Ended |
Dec. 31, 2023 product_line | |
Segment Reporting [Abstract] | |
Number of product lines | 3 |
BUSINESS SEGMENTS - SCHEDULE OF
BUSINESS SEGMENTS - SCHEDULE OF SEGMENT REPORTING INFORMATION BY SEGMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Insurance policy income | $ 2,505.5 | $ 2,499.8 | $ 2,523.4 |
Net investment income | 1,499.7 | 1,015.9 | 1,420.7 |
Total segment revenues | 4,144.6 | 3,667 | 4,076.1 |
Benefits and expenses: | |||
Insurance policy benefits | 2,318.2 | 1,615.4 | 2,188.1 |
Interest credited | |||
Interest expense | 238.6 | 137 | 95.4 |
Impact of annual option forfeitures related to fixed indexed annuity surrenders | (7.1) | 1 | (15.2) |
Other operating costs and expenses | 1,048.3 | 950.9 | 981.8 |
Total segment expenses | 3,685.1 | 3,200.3 | 3,561.4 |
Operating earnings before taxes | 459.5 | 466.7 | 514.7 |
Income tax expense on operating income | 103.4 | 106.3 | 114.3 |
Net operating income | 356.1 | 360.4 | 400.4 |
Insurance Product Lines | |||
Benefits and expenses: | |||
Allocated expenses | 599 | 596.6 | 566.5 |
Total insurance product margin | 959 | 936.5 | 953.4 |
Operating earnings before taxes | 360 | 339.9 | 386.9 |
Investments not allocated to product lines | |||
Revenues: | |||
Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances) | 131.5 | (205.3) | 219.8 |
Investment income not allocated to product lines | 335.6 | 257.5 | 264.8 |
Benefits and expenses: | |||
Interest credited | 28.8 | 28.5 | 2.2 |
Market value changes of options credited to fixed indexed annuity and life policyholders | 131.5 | (205.3) | 219.8 |
Interest expense | 169.8 | 96 | 72.2 |
Amortization | 1.6 | 1.5 | 0.1 |
Other operating costs and expenses | 22.3 | (13.4) | 16.6 |
Total insurance product margin | 120.2 | 143.9 | 188.9 |
Assets of our other non-life companies | |||
Revenues: | |||
Fee revenue | 177.6 | 169.3 | 147.6 |
Benefits and expenses: | |||
Commissions and other operating expenses | 146.6 | 145.6 | 128.2 |
Total insurance product margin | 31 | 23.7 | 19.4 |
Expenses not allocated to product lines | |||
Revenues: | |||
Amounts netted in expenses not allocated to product lines | 36.6 | 30.5 | 14.9 |
Benefits and expenses: | |||
Expenses not allocated to product lines | 88.3 | 71.3 | 95.4 |
Total insurance product margin | (51.7) | (40.8) | (80.5) |
Annuity | Insurance Product Lines | |||
Revenues: | |||
Insurance policy income | 28.4 | 23.1 | 19.6 |
Net investment income | 516.3 | 480 | 468.9 |
Total insurance product line revenue | 544.7 | 503.1 | 488.5 |
Benefits and expenses: | |||
Insurance policy benefits | 29 | 38.3 | 28.4 |
Interest credited | 209.4 | 175.5 | 162.9 |
Amortization, non-deferred commissions and advertising expense | 71.3 | 62.4 | 54 |
Total expenses | 309.7 | 276.2 | 245.3 |
Total insurance product margin | 235 | 226.9 | 243.2 |
Health: | Insurance Product Lines | |||
Revenues: | |||
Insurance policy income | 1,594.6 | 1,617.3 | 1,661.5 |
Net investment income | 296.7 | 293.3 | 293.5 |
Total insurance product line revenue | 1,891.3 | 1,910.6 | 1,955 |
Benefits and expenses: | |||
Insurance policy benefits | 1,234.9 | 1,237.5 | 1,289.1 |
Amortization, non-deferred commissions and advertising expense | 162.1 | 168.7 | 168.3 |
Total expenses | 1,397 | 1,406.2 | 1,457.4 |
Total insurance product margin | 494.3 | 504.4 | 497.6 |
Life: | Insurance Product Lines | |||
Revenues: | |||
Insurance policy income | 882.5 | 859.4 | 842.3 |
Net investment income | 144.8 | 141.9 | 143.2 |
Total insurance product line revenue | 1,027.3 | 1,001.3 | 985.5 |
Benefits and expenses: | |||
Insurance policy benefits | 570 | 575.3 | 567.5 |
Interest credited | 49.3 | 49 | 45.8 |
Amortization, non-deferred commissions and advertising expense | 178.3 | 171.8 | 159.6 |
Total expenses | 797.6 | 796.1 | 772.9 |
Total insurance product margin | 229.7 | 205.2 | 212.6 |
Allocated expenses | Insurance Product Lines | |||
Benefits and expenses: | |||
Total insurance product margin | $ (599) | $ (596.6) | $ (566.5) |
BUSINESS SEGMENTS - RECONCILIAT
BUSINESS SEGMENTS - RECONCILIATION OF OPERATING PROFIT (LOSS) FROM SEGMENTS TO CONSOLIDATED (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||
Total segment revenues | $ 4,144.6 | $ 3,667 | $ 4,076.1 | ||||||||
Total investment gains (losses) | (69.3) | (17.9) | 21.3 | ||||||||
Total revenues | $ 1,170.5 | $ 947.5 | $ 1,022.8 | $ 1,006 | $ 973.6 | $ 905.3 | $ 855 | $ 842.9 | 4,146.8 | 3,576.8 | 4,122.2 |
Total segment expenses | 3,685.1 | 3,200.3 | 3,561.4 | ||||||||
Total benefits and expenses | 3,790 | 2,760.3 | 3,389.1 | ||||||||
Income before income taxes | 46.1 | 215.6 | 96.1 | (1) | 48.5 | 227.9 | 299.8 | 240.3 | 356.8 | 816.5 | 733.1 |
Income tax expense | 80.3 | 185.9 | 162.8 | ||||||||
Net income | $ 36.3 | $ 167.3 | $ 73.7 | $ (0.8) | $ 38 | $ 175.9 | $ 233.3 | $ 183.4 | 276.5 | 630.6 | 570.3 |
Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment revenues | 4,144.6 | 3,667 | 4,076.1 | ||||||||
Total segment expenses | 3,685.1 | 3,200.3 | 3,561.4 | ||||||||
Segment reconciling items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total investment gains (losses) | (69) | (135.4) | 19.1 | ||||||||
Revenues related to earnings attributable to VIEs | 71.2 | 45.2 | 27 | ||||||||
Insurance policy benefits - fair value changes in embedded derivative liabilities | 29.9 | (440.2) | (186.8) | ||||||||
Expenses attributable to VIEs | 70.5 | 43 | 24.4 | ||||||||
Fair value changes related to agent deferred compensation plan | 3.5 | (48.9) | (8.9) | ||||||||
Other operating expenses | $ 1 | $ 6.1 | $ (1) |
BUSINESS SEGMENTS - SCHEDULE _2
BUSINESS SEGMENTS - SCHEDULE OF BALANCE SHEET INFORMATION, BY SEGMENT (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 35,102.5 | $ 33,133.1 |
Total liabilities | 32,886.9 | 31,364.3 |
Investments not allocated to product lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 8,711.5 | 8,856.8 |
Total liabilities | 5,561.6 | 5,293.8 |
Non-life companies included in the fee income segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 243.9 | 207.7 |
Total liabilities | 35.2 | 23.5 |
Other non-life companies | ||
Segment Reporting Information [Line Items] | ||
Total assets | 398.8 | 292.9 |
Total liabilities | 193.4 | 207.9 |
Annuity | Insurance Product Lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 12,081.9 | 10,971.3 |
Total liabilities | 12,935.2 | 12,251 |
Health: | Insurance Product Lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,512.5 | 9,019.9 |
Total liabilities | 9,866.9 | 9,556.4 |
Life insurance inforce: | Insurance Product Lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 4,153.9 | 3,784.5 |
Total liabilities | $ 4,294.6 | $ 4,031.7 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) - SCHEDULE OF QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 1,170.5 | $ 947.5 | $ 1,022.8 | $ 1,006 | $ 973.6 | $ 905.3 | $ 855 | $ 842.9 | $ 4,146.8 | $ 3,576.8 | $ 4,122.2 |
Income (loss) before income taxes | 46.1 | 215.6 | 96.1 | (1) | 48.5 | 227.9 | 299.8 | 240.3 | 356.8 | 816.5 | 733.1 |
Income tax expense (benefit) | 9.8 | 48.3 | 22.4 | (0.2) | 10.5 | 52 | 66.5 | 56.9 | 80.3 | 185.9 | 162.8 |
Net income | $ 36.3 | $ 167.3 | $ 73.7 | $ (0.8) | $ 38 | $ 175.9 | $ 233.3 | $ 183.4 | $ 276.5 | $ 630.6 | $ 570.3 |
Basic: | |||||||||||
Net income (loss) (in USD per share) | $ 0.33 | $ 1.48 | $ 0.64 | $ (0.01) | $ 0.33 | $ 1.54 | $ 2.02 | $ 1.55 | $ 2.44 | $ 5.45 | $ 4.44 |
Diluted: | |||||||||||
Net income (loss) (in USD per share) | $ 0.32 | $ 1.46 | $ 0.64 | $ (0.01) | $ 0.33 | $ 1.52 | $ 1.99 | $ 1.52 | $ 2.40 | $ 5.36 | $ 4.35 |
INVESTMENTS IN VARIABLE INTER_3
INVESTMENTS IN VARIABLE INTEREST ENTITIES - NARRATIVE (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) investment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | |||
Repayments of investment borrowings related to variable interest entities, amounts due in 2024 | $ 338.8 | ||
Repayments of investment borrowings related to variable interest entities, amounts due in 2025 | 158.9 | ||
Repayments of investment borrowings related to variable interest entities, amounts due in 2026 | 124.9 | ||
Repayments of investment borrowings related to variable interest entities, amounts due in 2027 | 89 | ||
Repayments of investment borrowings related to variable interest entities, amounts due in 2028 | 95.4 | ||
Repayments of investment borrowings related to variable interest entities, amounts due in 2029 | 14.9 | ||
Debt securities, available-for-sale at amortized cost | 23,699.2 | $ 23,384.2 | |
Variable interest entity amortized cost securities held | 787.6 | ||
Variable interest entity, gross unrealized gains fixed maturity securities | 2.5 | ||
Variable interest entity gross unrealized losses fixed maturity securities | 18.4 | ||
Variable interest entity fixed maturity securities allowance for credit loss | 3.1 | ||
Variable interest entity, estimated fair value of securities held | 768.6 | ||
Estimated fair value | 21,506.2 | 20,353.4 | |
Variable interest entities net realized gain (loss) on investments | (4.4) | (8.1) | $ 3.6 |
Variable interest entities net loss from sale of fixed maturity investments | 6.8 | 6.3 | 7.8 |
Variable interest entities change in allowance for current expected credit losses | 2.4 | (1.8) | 11.4 |
Variable interest entity, gross investment losses from sale | 6.9 | 6.3 | 8.1 |
Investments held by VIEs and sold | $ 18.5 | 69.2 | $ 70 |
Number of VIEs in default | investment | 0 | ||
Fair value of investments in unrealized loss position for less than 12 months | $ 1,169.9 | 7,636.9 | |
Gross unrealized losses of investments in unrealized loss position for less than 12 months | 24.5 | 835.2 | |
Fair value of investments in unrealized loss position for more than 12 months | 10,886.4 | 1,897.5 | |
Gross unrealized losses of investments in unrealized loss position for more than 12 months | 1,365 | 471.6 | |
Fixed Maturities | |||
Variable Interest Entity [Line Items] | |||
Estimated fair value | $ 21,506.2 | 20,353.4 | |
Continuous unrealized loss position | 20% | ||
Investments held by variable interest entities - corporate securities | |||
Variable Interest Entity [Line Items] | |||
Estimated fair value | $ 768.6 | ||
Fair value of investments in unrealized loss position for less than 12 months | 24.8 | 392.2 | |
Gross unrealized losses of investments in unrealized loss position for less than 12 months | 0.1 | 14.2 | |
Fair value of investments in unrealized loss position for more than 12 months | 302.3 | 477.9 | |
Gross unrealized losses of investments in unrealized loss position for more than 12 months | 8.7 | 17.3 | |
Below-investment Grade | |||
Variable Interest Entity [Line Items] | |||
Debt securities, available-for-sale at amortized cost | $ 1,317.2 | ||
Percentage of available-for-sale debt securities | 5.60% | ||
Estimated fair value | $ 1,236.7 | ||
Available-for-sale securities, percentage of amortized cost | 94% | ||
Continuous unrealized loss position | 20% | ||
Gross unrealized losses of investments in unrealized loss position for less than 12 months | $ 32.2 | ||
Below-investment Grade | Fixed Maturities | |||
Variable Interest Entity [Line Items] | |||
Estimated fair value | 1,236.7 | $ 1,318.5 | |
Below-investment Grade | Investments held by variable interest entities - corporate securities | |||
Variable Interest Entity [Line Items] | |||
Debt securities, available-for-sale at amortized cost | $ 764.4 | ||
Percentage of available-for-sale debt securities | 97% | ||
Estimated fair value | $ 745.3 | ||
Available-for-sale securities, percentage of amortized cost | 98% |
INVESTMENTS IN VARIABLE INTER_4
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SCHEDULE OF IMPACT ON BALANCE SHEET OF CONSOLIDATING VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 |
Assets: | |||
Investments held by variable interest entities | $ 768.6 | $ 1,077.6 | |
Cash and cash equivalents held by variable interest entities | 114.5 | 69.2 | |
Accrued investment income | 251.5 | 235.6 | |
Income tax assets, net | 936.2 | 1,063.4 | $ 806.4 |
Total assets | 35,102.5 | 33,133.1 | |
Liabilities: | |||
Other liabilities | 848.8 | 693.9 | |
Borrowings related to variable interest entities | 820.8 | 1,104.6 | |
Total liabilities | 32,886.9 | 31,364.3 | |
Investments held by variable interest entities - corporate securities | |||
Assets: | |||
Investments held by variable interest entities | 768.6 | 1,077.6 | |
Notes receivable of VIEs held by subsidiaries | (113.8) | (113.8) | |
Cash and cash equivalents held by variable interest entities | 114.5 | 69.2 | |
Accrued investment income | 2.7 | 3.5 | |
Income tax assets, net | 13 | 19.6 | |
Other assets | (0.7) | 1.7 | |
Total assets | 784.3 | 1,057.8 | |
Liabilities: | |||
Other liabilities | 12.4 | 26.9 | |
Borrowings related to variable interest entities | 820.8 | 1,104.6 | |
Notes payable of VIEs held by subsidiaries | 0 | 0 | |
Total liabilities | 833.2 | 1,131.5 | |
Investments held by variable interest entities - corporate securities | VIEs | |||
Assets: | |||
Investments held by variable interest entities | 768.6 | 1,077.6 | |
Notes receivable of VIEs held by subsidiaries | 0 | 0 | |
Cash and cash equivalents held by variable interest entities | 114.5 | 69.2 | |
Accrued investment income | 2.7 | 3.5 | |
Income tax assets, net | 13 | 19.6 | |
Other assets | 0 | 2.5 | |
Total assets | 898.8 | 1,172.4 | |
Liabilities: | |||
Other liabilities | 14.6 | 29.3 | |
Borrowings related to variable interest entities | 820.8 | 1,104.6 | |
Notes payable of VIEs held by subsidiaries | 126.1 | 126.1 | |
Total liabilities | 961.5 | 1,260 | |
Investments held by variable interest entities - corporate securities | Eliminations | |||
Assets: | |||
Investments held by variable interest entities | 0 | 0 | |
Notes receivable of VIEs held by subsidiaries | (113.8) | (113.8) | |
Cash and cash equivalents held by variable interest entities | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Income tax assets, net | 0 | 0 | |
Other assets | (0.7) | (0.8) | |
Total assets | (114.5) | (114.6) | |
Liabilities: | |||
Other liabilities | (2.2) | (2.4) | |
Borrowings related to variable interest entities | 0 | 0 | |
Notes payable of VIEs held by subsidiaries | (126.1) | (126.1) | |
Total liabilities | $ (128.3) | $ (128.5) |
INVESTMENTS IN VARIABLE INTER_5
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SUPPLEMENTAL INFORMATION, REVENUES AND EXPENSES OF VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||||||||||
Net investment income – policyholder and other special-purpose portfolios | $ 249.5 | $ (163.1) | $ 280.5 | ||||||||
Fee revenue and other income | 210.6 | 196.5 | 159 | ||||||||
Total revenues | $ 1,170.5 | $ 947.5 | $ 1,022.8 | $ 1,006 | $ 973.6 | $ 905.3 | $ 855 | $ 842.9 | 4,146.8 | 3,576.8 | 4,122.2 |
Expenses: | |||||||||||
Interest expense | 238.6 | 137 | 95.4 | ||||||||
Other operating expenses | 1,048.3 | 950.9 | 981.8 | ||||||||
Total benefits and expenses | 3,790 | 2,760.3 | 3,389.1 | ||||||||
Total investment gains (losses) | (69.3) | (17.9) | 21.3 | ||||||||
Investments held by variable interest entities - corporate securities | |||||||||||
Revenues: | |||||||||||
Net investment income – policyholder and other special-purpose portfolios | 85.2 | 60.1 | 45.6 | ||||||||
Total revenues | 89.6 | 65.4 | 50.8 | ||||||||
Expenses: | |||||||||||
Interest expense | 68.7 | 41 | 23.2 | ||||||||
Other operating expenses | 1.8 | 2 | 1.2 | ||||||||
Total benefits and expenses | 70.5 | 43 | 24.4 | ||||||||
Income before net investment gains (losses) and income taxes | 19.1 | 22.4 | 26.4 | ||||||||
Total investment gains (losses) | (4.4) | (8.1) | 3.6 | ||||||||
Income before income taxes | 14.7 | 14.3 | 30 | ||||||||
Investments held by variable interest entities - corporate securities | Financial Service | |||||||||||
Revenues: | |||||||||||
Fee revenue and other income | $ 4.4 | $ 5.3 | $ 5.2 |
INVESTMENTS IN VARIABLE INTER_6
INVESTMENTS IN VARIABLE INTEREST ENTITIES - ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | $ 56 | $ 7.6 | $ 2.2 |
Additions for securities for which credit losses were not previously recorded | 7.7 | 50.4 | 6.3 |
Additions (reductions) for securities where an allowance was previously recorded | (7.9) | 10.3 | 0 |
Reduction for securities sold during the period | (12.9) | (12.3) | (0.9) |
Allowance at the end of the period | 42.9 | 56 | 7.6 |
Corporate securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | 54.4 | 7.4 | 1.9 |
Additions for securities for which credit losses were not previously recorded | 7.3 | 48.9 | 6.1 |
Additions (reductions) for securities where an allowance was previously recorded | (7.3) | 10.3 | 0.2 |
Reduction for securities sold during the period | (12.7) | (12.2) | (0.8) |
Allowance at the end of the period | 41.7 | 54.4 | 7.4 |
Investments held by variable interest entities - corporate securities | Corporate securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance at the beginning of the period | 5.5 | 3.7 | 15.1 |
Additions for securities for which credit losses were not previously recorded | 0.8 | 7.8 | 1.3 |
Additions (reductions) for securities where an allowance was previously recorded | (0.3) | (3) | (2.9) |
Reduction for securities sold during the period | (2.9) | (3) | (9.8) |
Allowance at the end of the period | $ 3.1 | $ 5.5 | $ 3.7 |
INVESTMENTS IN VARIABLE INTER_7
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SCHEDULE OF INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due in one year or less | $ 202.1 | |
Due after one year through five years | 2,288.2 | |
Due after five years through ten years | 1,630.4 | |
Total | 23,699.2 | |
Estimated fair value | ||
Due in one year or less | 193.3 | |
Due after one year through five years | 2,191.7 | |
Due after five years through ten years | 1,546.4 | |
Total | 21,506.2 | $ 20,353.4 |
Investments held by variable interest entities - corporate securities | ||
Amortized cost | ||
Due in one year or less | 2 | |
Due after one year through five years | 746 | |
Due after five years through ten years | 39.6 | |
Total | 787.6 | |
Estimated fair value | ||
Due in one year or less | 2 | |
Due after one year through five years | 727 | |
Due after five years through ten years | 39.6 | |
Total | $ 768.6 |
INVESTMENTS IN VARIABLE INTER_8
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SCHEDULE OF INVESTMENTS WITH UNREALIZED LOSSES CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Amortized cost | |
Due after one year through five years | $ 1,902.1 |
Due after five years through ten years | 1,039.6 |
Total | 19,290.9 |
Estimated fair value | |
Due after one year through five years | 1,799.3 |
Due after five years through ten years | 935.2 |
Total | 16,937.2 |
Investments held by variable interest entities - corporate securities | |
Amortized cost | |
Due in one year or less | 0.8 |
Due after one year through five years | 421.8 |
Due after five years through ten years | 14 |
Total | 436.6 |
Estimated fair value | |
Due in one year or less | 0.8 |
Due after one year through five years | 400.6 |
Due after five years through ten years | 13.7 |
Total | $ 415.1 |
INVESTMENTS IN VARIABLE INTER_9
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SCHEDULE OF INVESTMENTS IN OUR PORTFOLIO WHICH HAVE BEEN CONTINUOUSLY IN AN UNREALIZED LOSS POSITION EXCEEDING 20% OF AMORTIZED COST PRIOR TO SALE (Details) - Investments held by variable interest entities - corporate securities $ in Millions | Dec. 31, 2023 USD ($) issuer product_distribution_channel |
Debt Securities, Available-for-sale [Line Items] | |
Less than 6 months prior to sale, Number of issuers | issuer | 3 |
Greater than or equal to 6 months and less than 12 months prior to sale, Number of issuers | issuer | 2 |
Greater than 12 months prior to sale, Number of issuers | product_distribution_channel | 1 |
Less than 6 months prior to sale, Amortized cost | $ 3.7 |
Greater than or equal to 6 months and less than 12 months prior to sale, Amortized cost | 4.9 |
Greater than 12 months prior to sale, Amortized cost | 3.5 |
Amortized cost, Total | 12.1 |
Less than 6 months prior to sale, Fair value | 2.6 |
Greater than or equal to 6 months and less than 12 months prior to sale, Fair value | 1.8 |
Greater than 12 months prior to sale, Fair value | 1 |
Fair value, Total | $ 5.4 |
INVESTMENTS IN VARIABLE INTE_10
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SCHEDULE OF INVESTMENTS IN OUR PORTFOLIO RATED BELOW-INVESTMENT GRADE WHICH HAVE BEEN CONTINUOUSLY IN AN UNREALIZED LOSS POSITION EXCEEDING 20% OF THE COST BASIS (Details) - Below-investment Grade $ in Millions | Dec. 31, 2023 USD ($) issuer |
Debt Securities, Available-for-sale [Line Items] | |
Less than 6 months, Number of issuers | issuer | 1 |
Greater than or equal to 6 months and less than 12 months, Number of issuers | issuer | 6 |
Greater than 12 months, Number of issuers | issuer | 5 |
Less than 6 months, Cost basis | $ 4.2 |
Greater than or equal to 6 months and less than 12 months, Cost basis | 21.1 |
Greater than 12 months, Cost basis | 64.5 |
Less than 6 months, Unrealized loss | (1.1) |
Greater than or equal to 6 months and less than 12 months, Unrealized loss | (6.2) |
Greater than 12 months, Unrealized loss | (24.9) |
Less than 6 months, Estimated fair value | 3.1 |
Greater than or equal to 6 months and less than 12 months, Estimated fair value | 14.9 |
Greater than 12 months, Estimated fair value | $ 39.6 |
Investments held by variable interest entities - corporate securities | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 6 months, Number of issuers | issuer | 2 |
Greater than or equal to 6 months and less than 12 months, Number of issuers | issuer | 1 |
Greater than 12 months, Number of issuers | issuer | 1 |
Less than 6 months, Cost basis | $ 7.3 |
Greater than or equal to 6 months and less than 12 months, Cost basis | 1.1 |
Greater than 12 months, Cost basis | 1.9 |
Cost basis, Total | 10.3 |
Less than 6 months, Unrealized loss | (1.7) |
Greater than or equal to 6 months and less than 12 months, Unrealized loss | (0.3) |
Greater than 12 months, Unrealized loss | (0.6) |
Unrealized loss, Total | (2.6) |
Less than 6 months, Estimated fair value | 5.6 |
Greater than or equal to 6 months and less than 12 months, Estimated fair value | 0.8 |
Greater than 12 months, Estimated fair value | 1.3 |
Estimated fair value, Total | $ 7.7 |
SCHEDULE II - Condensed Finan_2
SCHEDULE II - Condensed Financial Information of Registrant (Parent Company) - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Equity securities at fair value | $ 96.9 | $ 135.3 | ||
Other assets | 641.1 | 580.8 | ||
Total assets | 35,102.5 | 33,133.1 | ||
Liabilities: | ||||
Notes payable | 1,140.5 | 1,138.8 | ||
Other liabilities | 848.8 | 693.9 | ||
Total liabilities | 32,886.9 | 31,364.3 | ||
Commitments and Contingencies | ||||
Shareholders' equity: | ||||
Accumulated other comprehensive loss | (1,576.8) | (1,957.3) | ||
Retained earnings | 1,899.8 | 1,691.2 | ||
Total shareholders' equity | 2,215.6 | 1,768.8 | $ 3,684.7 | $ 5,484.2 |
Total liabilities and shareholders' equity | 35,102.5 | 33,133.1 | ||
Parent Company | ||||
Assets: | ||||
Cash and cash equivalents - unrestricted | 255.3 | 136.7 | ||
Equity securities at fair value | 0 | 36.6 | ||
Investment in wholly-owned subsidiaries (eliminated in consolidation) | 3,169.3 | 2,660.4 | ||
Income tax assets, net | 124.4 | 154.9 | ||
Receivable from subsidiaries (eliminated in consolidation) | 26.7 | 114.9 | ||
Other assets | 2.4 | 2.2 | ||
Total assets | 3,578.1 | 3,105.7 | ||
Liabilities: | ||||
Notes payable | 1,140.5 | 1,138.8 | ||
Payable to subsidiaries (eliminated in consolidation) | 174 | 172 | ||
Other liabilities | 48 | 26.1 | ||
Total liabilities | 1,362.5 | 1,336.9 | ||
Commitments and Contingencies | ||||
Shareholders' equity: | ||||
Common stock and additional paid-in capital ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: 2023 - 109,357,540; 2022 - 114,343,070) | 1,892.6 | 2,034.9 | ||
Accumulated other comprehensive loss | (1,576.8) | (1,957.3) | ||
Retained earnings | 1,899.8 | 1,691.2 | ||
Total shareholders' equity | 2,215.6 | 1,768.8 | ||
Total liabilities and shareholders' equity | $ 3,578.1 | $ 3,105.7 |
SCHEDULE II - Condensed Finan_3
SCHEDULE II - Condensed Financial Information of Registrant (Parent Company) - Balance Sheet (Parenthetical) (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 8,000,000,000 | 8,000,000,000 |
Common stock, shares issued (in shares) | 109,357,540 | 114,343,070 |
Common stock, shares outstanding (in shares) | 109,357,540 | 114,343,070 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 8,000,000,000 | 8,000,000,000 |
Common stock, shares issued (in shares) | 109,357,540 | 114,343,070 |
Common stock, shares outstanding (in shares) | 109,357,540 | 114,343,070 |
SCHEDULE II - Condensed Finan_4
SCHEDULE II - Condensed Financial Information of Registrant (Parent Company) - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||||||||||
Net investment income | $ 1,499.7 | $ 1,015.9 | $ 1,420.7 | ||||||||
Total investment gains (losses) | (69.3) | (17.9) | 21.3 | ||||||||
Total revenues | $ 1,170.5 | $ 947.5 | $ 1,022.8 | $ 1,006 | $ 973.6 | $ 905.3 | $ 855 | $ 842.9 | 4,146.8 | 3,576.8 | 4,122.2 |
Expenses: | |||||||||||
Interest expense | 238.6 | 137 | 95.4 | ||||||||
Income tax benefit | 9.8 | 48.3 | 22.4 | (0.2) | 10.5 | 52 | 66.5 | 56.9 | 80.3 | 185.9 | 162.8 |
Net income | $ 36.3 | $ 167.3 | $ 73.7 | $ (0.8) | $ 38 | $ 175.9 | $ 233.3 | $ 183.4 | 276.5 | 630.6 | 570.3 |
Parent Company | |||||||||||
Revenues: | |||||||||||
Net investment income | 13.3 | 9.8 | 7.4 | ||||||||
Net investment income - affiliated | 3.7 | 3 | 0.3 | ||||||||
Total investment gains (losses) | 0.1 | (0.6) | (0.2) | ||||||||
Total revenues | 17.1 | 12.2 | 7.5 | ||||||||
Expenses: | |||||||||||
Interest expense | 62.7 | 62.5 | 62.4 | ||||||||
Intercompany expenses (eliminated in consolidation) | 8.4 | 3.8 | 0.5 | ||||||||
Operating costs and expenses | 63.2 | 0.2 | 38.5 | ||||||||
Total expenses | 134.3 | 66.5 | 101.4 | ||||||||
Income before income taxes | (117.2) | (54.3) | (93.9) | ||||||||
Income tax benefit | (32.2) | (18.3) | (26) | ||||||||
Loss before equity in undistributed earnings of subsidiaries | (85) | (36) | (67.9) | ||||||||
Equity in undistributed earnings of subsidiaries (eliminated in consolidation) | 361.5 | 666.6 | 638.2 | ||||||||
Net income | $ 276.5 | $ 630.6 | $ 570.3 |
SCHEDULE II - Condensed Finan_5
SCHEDULE II - Condensed Financial Information of Registrant (Parent Company) - Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash flows from operating activities | $ 582.9 | $ 495.4 | $ 598.3 | |
Cash flows from investing activities: | ||||
Sales of investments | 1,388.6 | 3,253.6 | 1,823.6 | |
Purchases of investments | (3,591.9) | (6,482) | (6,135.2) | |
Net cash used by investing activities | (872.3) | (1,781.3) | (1,526.1) | |
Cash flows from financing activities: | ||||
Issuance of common stock | 9.2 | 10.4 | 18.4 | |
Payments to repurchase common stock | (166.1) | (190.1) | (407.8) | |
Debt issuance costs | 0 | 0 | (1) | |
Net cash provided by financing activities | 533.5 | 1,199.1 | 667.6 | |
Net increase (decrease) in cash and cash equivalents | 244.1 | (86.8) | (260.2) | |
Cash and cash equivalents - unrestricted and held by variable interest entities, beginning of year | 644.9 | 731.7 | 991.9 | |
Cash and cash equivalents - unrestricted and held by variable interest entities, end of year | 889 | 644.9 | 731.7 | |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash flows from operating activities | (106.8) | (143.2) | (153.2) | |
Cash flows from investing activities: | ||||
Sales of investments | 43.2 | 24.6 | 0 | |
Purchases of investments | (6.5) | (11.8) | (50) | |
Net sales of trading securities | 6.6 | 7.7 | 8.4 | |
Dividends received from consolidated subsidiary | [1] | 150 | 69.6 | 328.3 |
Net cash used by investing activities | 193.3 | 90.1 | 286.7 | |
Cash flows from financing activities: | ||||
Issuance of common stock | 13.2 | 13.5 | 21.5 | |
Payments to repurchase common stock | (166.1) | (190.1) | (407.8) | |
Common stock dividends paid | (68.1) | (64.8) | (65.7) | |
Issuance of notes payable to affiliates | [1] | 400.3 | 349.5 | 249.7 |
Payments on notes payable to affiliates | [1] | (147.2) | (114.5) | (125.3) |
Debt issuance costs | 0 | 0 | (1) | |
Net cash provided by financing activities | 32.1 | (6.4) | (328.6) | |
Net increase (decrease) in cash and cash equivalents | 118.6 | (59.5) | (195.1) | |
Cash and cash equivalents - unrestricted and held by variable interest entities, beginning of year | 136.7 | 196.2 | 391.3 | |
Cash and cash equivalents - unrestricted and held by variable interest entities, end of year | $ 255.3 | $ 136.7 | $ 196.2 | |
[1]Eliminated in consolidation |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Assumed | $ 16.6 | $ 18.6 | $ 20.7 |
Reinsurance ceded | (194.6) | (214.6) | (231.3) |
Premiums on traditional products with mortality or morbidity risk | 2,303.7 | 2,309.9 | 2,342.8 |
Life insurance inforce: | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct | 31,335.5 | 30,444.8 | 29,954 |
Assumed | 82 | 86.5 | 93.8 |
Ceded | (2,804.9) | (2,820) | (2,930.8) |
Net insurance inforce | $ 28,612.6 | $ 27,711.3 | $ 27,117 |
Percentage of assumed to net | 0.30% | 0.30% | 0.30% |
Insurance policy income: | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct | $ 2,468.5 | $ 2,483.1 | $ 2,530.5 |
Assumed | 16.6 | 18.7 | 20.3 |
Reinsurance ceded | (181.4) | (191.9) | (208) |
Premiums on traditional products with mortality or morbidity risk | $ 2,303.7 | $ 2,309.9 | $ 2,342.8 |
Percentage of assumed to net | 0.70% | 0.80% | 0.90% |
Uncategorized Items - cno-20231
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |