Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-10890 | |
Entity Registrant Name | HORACE MANN EDUCATORS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 37-0911756 | |
Entity Address, Address Line One | 1 Horace Mann Plaza | |
Entity Address, City or Town | Springfield | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 62715-0001 | |
City Area Code | 217 | |
Local Phone Number | 789-2500 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | HMN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,842,297 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000850141 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments | ||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,712.7; 2022, $5,756.9) | $ 5,211.9 | $ 5,185 |
Equity securities at fair value | 85.8 | 99.6 |
Limited partnership interests | 1,073.8 | 983.7 |
Short-term and other investments | 298.1 | 319.3 |
Total investments | 6,669.6 | 6,587.6 |
Cash | 23.1 | 42.8 |
Deferred policy acquisition costs | 332.9 | 330.6 |
Reinsurance balances receivable | 453.6 | 468 |
Deposit asset on reinsurance | 2,514.9 | 2,516.6 |
Intangible assets | 177.7 | 185.2 |
Goodwill | 54.3 | 54.3 |
Other assets | 347.3 | 328.7 |
Separate Account variable annuity assets | 3,098.5 | 2,792.3 |
Total assets | 13,671.9 | 13,306.1 |
Policy liabilities | ||
Future policy benefit reserves | 1,740.9 | 1,718 |
Policyholders' account balances | 5,206.2 | 5,260.6 |
Unpaid claims and claim expenses | 597.8 | 564 |
Unearned premiums | 272.5 | 266.1 |
Total policy liabilities | 7,817.4 | 7,808.7 |
Other policyholder funds | 900.5 | 809.3 |
Other liabilities | 255.5 | 299.5 |
Short-term debt | 249 | 249 |
Long-term debt | 249.1 | 249 |
Separate Account variable annuity liabilities | 3,098.5 | 2,792.3 |
Total liabilities | 12,570 | 12,207.8 |
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | 0 |
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,745,445; 2022, 66,618,465 | 0.1 | 0.1 |
Additional paid-in capital | 505.7 | 502.6 |
Retained earnings | 1,478.6 | 1,512.4 |
Accumulated other comprehensive income (loss), net of tax: | ||
Net unrealized investment losses on fixed maturity securities | (393.7) | (449.6) |
Net reserve remeasurements attributable to discount rates | 42.9 | 59 |
Net funded status of benefit plans | (8.8) | (8.8) |
Treasury stock, at cost, 2023, 25,878,087 shares; 2022, 25,714,153 shares | (522.9) | (517.4) |
Total shareholders’ equity | 1,101.9 | 1,098.3 |
Total liabilities and shareholders’ equity | $ 13,671.9 | $ 13,306.1 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 5,712.7 | $ 5,756.9 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 66,745,445 | 66,618,465 |
Treasury stock (in shares) | 25,878,087 | 25,714,153 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Net premiums and contract charges earned | $ 260.7 | $ 255.4 | $ 516.6 | $ 511.2 |
Net investment income | 108.5 | 105.2 | 208.9 | 203.1 |
Net investment losses | (17.4) | (15.5) | (21.3) | (31) |
Other income | 4.6 | 0.8 | 6.1 | 9.3 |
Total revenues | 356.4 | 345.9 | 710.3 | 692.6 |
Benefits, losses and expenses | ||||
Benefits, claims and settlement expenses | 205.2 | 203.4 | 388.4 | 378.6 |
Interest credited | 50.7 | 41.4 | 99.4 | 81.1 |
Operating expenses | 80.1 | 77.1 | 159.9 | 153.8 |
DAC amortization expense | 25.4 | 21.5 | 49.1 | 43.5 |
Intangible asset amortization expense | 3.7 | 4.2 | 7.4 | 8.4 |
Interest expense | 6.9 | 4.3 | 13.6 | 8.2 |
Total benefits, losses and expenses | 372 | 351.9 | 717.8 | 673.6 |
Income (loss) before income taxes | (15.6) | (6) | (7.5) | 19 |
Income tax expense (benefit) | (2.8) | (1.8) | (1.3) | 2.9 |
Net income (loss) | $ (12.8) | $ (4.2) | $ (6.2) | $ 16.1 |
Net income (loss) per share | ||||
Basic (in usd per share) | $ (0.31) | $ (0.10) | $ (0.15) | $ 0.38 |
Diluted (in usd per share) | $ (0.31) | $ (0.10) | $ (0.15) | $ 0.38 |
Weighted average number of shares and equivalent shares | ||||
Basic (in shares) | 41.3 | 41.8 | 41.3 | 41.8 |
Diluted (in shares) | 41.4 | 41.8 | 41.4 | 42 |
Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ (12.8) | $ (4.2) | $ (6.2) | $ 16.1 |
Other comprehensive loss, net of tax: | ||||
Change in net unrealized investment losses on fixed maturity securities | (37.3) | (294.8) | 55.9 | (628.9) |
Change in net reserve remeasurements attributable to discount rates | 25.1 | 168.5 | (16.1) | 350 |
Change in net funded status of benefit plans | 0 | 0 | 0 | 0 |
Other comprehensive loss | (12.2) | (126.3) | 39.8 | (278.9) |
Comprehensive income (loss) | $ (25) | $ (130.5) | $ 33.6 | $ (262.8) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Effect of the Adoption of ASU 2018-12 | Common stock, $0.001 par value | Common stock, $0.001 par value Effect of the Adoption of ASU 2018-12 | Additional paid-in capital | Additional paid-in capital Effect of the Adoption of ASU 2018-12 | Retained earnings | Retained earnings Effect of the Adoption of ASU 2018-12 | Accumulated other comprehensive income (loss), net of tax: | Accumulated other comprehensive income (loss), net of tax: Effect of the Adoption of ASU 2018-12 | Treasury stock, at cost | Treasury stock, at cost Effect of the Adoption of ASU 2018-12 | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2018-12 | ||||||||||||
Ending balance at Dec. 31, 2021 | $ 0.1 | $ 495.3 | $ 1,547 | $ 22.1 | $ (50) | $ (330.5) | $ (493.4) | ||||||
Ending balance (Accounting Standards Update 2018-12) at Dec. 31, 2021 | (0.8) | (0.8) | [1] | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Options exercised and conversion of common and restricted stock units | (1.2) | ||||||||||||
Share-based compensation expense | 4 | ||||||||||||
Net income (loss) | $ 16.1 | $ 14.1 | 16.1 | 14.1 | |||||||||
Dividends, 2023, $0.33 per share; 2022, $0.32 per share | (27) | 0 | |||||||||||
Change in net unrealized investment losses on fixed maturity securities | (628.9) | (117.8) | |||||||||||
Change in net reserve remeasurements attributable to discount rates | 350 | 350 | 350 | 350 | |||||||||
Treasury stock acquired - share repurchase authorization | (14) | ||||||||||||
Ending balance at Jun. 30, 2022 | 1,197.2 | (62.9) | 0.1 | $ 0 | 498.1 | $ 0 | 1,535.3 | 35.4 | (328.9) | (98.3) | (507.4) | $ 0 | |
Beginning balance at Mar. 31, 2022 | 0.1 | 496.6 | 1,553 | 27.1 | (202.6) | (212.4) | (495.6) | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Options exercised and conversion of common and restricted stock units | (0.7) | ||||||||||||
Share-based compensation expense | 2.2 | ||||||||||||
Net income (loss) | (4.2) | 8.3 | (4.2) | 8.3 | |||||||||
Dividends, 2023, $0.33 per share; 2022, $0.32 per share | (13.5) | 0 | |||||||||||
Change in net unrealized investment losses on fixed maturity securities | (294.8) | (54.4) | |||||||||||
Change in net reserve remeasurements attributable to discount rates | 168.5 | 168.5 | 168.5 | 168.5 | |||||||||
Treasury stock acquired - share repurchase authorization | (11.8) | ||||||||||||
Ending balance at Jun. 30, 2022 | 1,197.2 | (62.9) | 0.1 | $ 0 | 498.1 | $ 0 | 1,535.3 | $ 35.4 | (328.9) | $ (98.3) | (507.4) | $ 0 | |
Beginning balance at Dec. 31, 2022 | 1,098.3 | $ 10.1 | 0.1 | 502.6 | 1,512.4 | (399.4) | (517.4) | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Options exercised and conversion of common and restricted stock units | (1.1) | ||||||||||||
Share-based compensation expense | 4.2 | ||||||||||||
Net income (loss) | (6.2) | (6.2) | |||||||||||
Dividends, 2023, $0.33 per share; 2022, $0.32 per share | (27.6) | ||||||||||||
Change in net unrealized investment losses on fixed maturity securities | 55.9 | ||||||||||||
Change in net reserve remeasurements attributable to discount rates | (16.1) | (16.1) | |||||||||||
Treasury stock acquired - share repurchase authorization | (5.5) | ||||||||||||
Ending balance at Jun. 30, 2023 | 1,101.9 | 0.1 | 505.7 | 1,478.6 | (359.6) | (522.9) | |||||||
Beginning balance at Mar. 31, 2023 | 0.1 | 503.1 | 1,505.2 | (347.4) | (521.8) | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Options exercised and conversion of common and restricted stock units | 0.3 | ||||||||||||
Share-based compensation expense | 2.3 | ||||||||||||
Net income (loss) | (12.8) | (12.8) | |||||||||||
Dividends, 2023, $0.33 per share; 2022, $0.32 per share | (13.8) | ||||||||||||
Change in net unrealized investment losses on fixed maturity securities | (37.3) | ||||||||||||
Change in net reserve remeasurements attributable to discount rates | 25.1 | 25.1 | |||||||||||
Treasury stock acquired - share repurchase authorization | (1.1) | ||||||||||||
Ending balance at Jun. 30, 2023 | $ 1,101.9 | $ 0.1 | $ 505.7 | $ 1,478.6 | $ (359.6) | $ (522.9) | |||||||
[1]See Note 1 to the Consolidated Financial Statements for information regarding the adoption of ASU 2018-12. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Cash dividends (in usd per share) | $ 0.32 | $ 0.33 | $ 0.32 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows - operating activities | ||
Net income (loss) | $ (6.2) | $ 16.1 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Net investment losses | 21.3 | 31 |
Depreciation and intangible asset amortization | 12.9 | 7.9 |
Share-based compensation expense | 4.5 | 4.4 |
Loss (gain) from equity method investments, net of dividends or distributions | 11.5 | (3.8) |
Changes in: | ||
Insurance liabilities | 126.8 | 275.2 |
Amounts due under reinsurance agreements | 14.3 | (310.4) |
Income tax liabilities | (15.7) | 93 |
Other operating assets and liabilities | (17.3) | (36.2) |
Other, net | 1.8 | 2.8 |
Net cash provided by operating activities | 153.9 | 80 |
Fixed maturity securities | ||
Purchases | (313.7) | (784.6) |
Sales | 206.2 | 365.3 |
Maturities, paydowns, calls and redemptions | 133.9 | 346.8 |
Equity securities | ||
Purchases | (1.7) | (4.3) |
Sales and repayments | 9.8 | 6.8 |
Limited partnership interests | ||
Purchases | (110.2) | (147.8) |
Sales | 8.3 | 36.4 |
Change in short-term and other investments, net | 22.8 | 49.7 |
Acquisition of business, net of cash acquired | 0 | (164.4) |
Net cash used in investing activities | (44.6) | (296.1) |
Cash flows - financing activities | ||
Dividends paid to shareholders | (27) | (26.4) |
Principal repayment on FHLB borrowings | 0 | (5) |
Treasury stock acquired | (5.5) | (14) |
Withholding tax payments on RSUs tendered | (1.8) | (2.3) |
Annuity contracts: variable, fixed and FHLB funding agreements: | ||
Deposits including advances from FHLB funding agreements | 418.4 | 332.9 |
Benefits, withdrawals and net transfers to Separate Account variable annuity assets | (309.6) | (223.4) |
Repayment of FHLB funding agreements | (85) | (10) |
Life policy accounts: | ||
Deposits | 6.3 | 4.6 |
Withdrawals and surrenders | (2) | (1.9) |
Change in deposit asset on reinsurance | (52.7) | (24.4) |
Net increase (decrease) in reverse repurchase agreements | (70) | 95.8 |
Change in book overdrafts | (0.1) | 6.6 |
Net cash provided by (used in) financing activities | (129) | 132.5 |
Net decrease in cash | (19.7) | (83.6) |
Cash at beginning of period | 42.8 | 133.7 |
Cash at end of period | $ 23.1 | $ 50.1 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Business Horace Mann Educators Corporation is a holding company for insurance subsidiaries that market and underwrite personal lines of property and casualty insurance products (primarily personal lines of auto and property insurance), life insurance products, retirement products (primarily tax-qualified fixed and variable annuities), worksite direct insurance products (primarily cancer, heart, hospital, supplemental disability and accident coverages), and employer-sponsored group benefit products (primarily short-term and long-term group disability, and group term life coverages), primarily to K-12 teachers, administrators and other employees of public schools and their families (collectively, HMEC, the Company or Horace Mann). The Company conducts and manages its business in four reporting segments: (1) Property & Casualty, (2) Life & Retirement, (3) Supplemental & Group Benefits and (4) Corporate & Other. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in annual financial statements prepared in conformity with GAAP, but are not required for interim reporting purposes, have been omitted. These Consolidated Financial Statements and Notes thereto should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Part II - Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. The accompanying Consolidated Financial Statements and Notes thereto are unaudited and reflect all adjustments (generally consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Part II - Item 8, Note 1 of the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Company has reclassified the presentation of certain prior period information to conform to the current year's presentation. Consolidation All intercompany transactions and balances between HMEC and its subsidiaries and affiliates have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the reporting date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The most significant critical accounting estimates include valuation of hard-to-value fixed maturity securities, evaluation of credit loss impairments for fixed maturity securities, evaluation of goodwill and intangible assets for impairment, valuation of annuity and life deferred policy acquisition costs, valuation of liabilities for property and casualty unpaid claims and claim expense reserves, valuation of liabilities for group benefits unpaid claims and claim expense reserves, valuation of future policy benefit reserves and policyholders' account balances and valuation of long-duration insurance contracts under the new accounting guidance in ASU 2018-12. Adoption of New Accounting Standards Accounting for Long-Duration Insurance Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date, and (ii) ASU 2020-11, Financial Services - Insurance (Topic 944): Effective Date and Early Application (collectively referred to herein as ASU 2018-12). ASU 2018-12 changed existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts. ASU 2018-12 includes: (1) a requirement to review and, if there is a change, update cash flow assumptions used to measure the liability for future policy benefits (LFPB) at least annually, and to update the discount rate assumption quarterly, (2) a requirement to account for market risk benefits (MRBs) at fair value, (3) simplified amortization for deferred policy acquisition costs (DAC), and (4) enhanced financial statement presentation and disclosures. ASU 2018-12 became effective for the Company for interim and annual periods beginning after December 15, 2022. The Company adopted ASU 2018-12 for LFPB and DAC on a modified retrospective basis such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. The Company adopted ASU 2018-12 for MRBs on a full retrospective basis, using hindsight where necessary. For variable annuities, actuarial assumptions (mortality, lapse, and premium payment patterns) used to measure MRBs were unobservable for years prior to 2006 and thus, hindsight was used to determine relevant assumptions for transition purposes. The factors used in applying hindsight included internal experience studies, the historical economic environment, actual performance of the business, and relevant industry information. The following table summarizes the balance of and changes in LFPB on January 1, 2021 due to adoption of ASU 2018-12. The impact of shifts between deferred profit liabilities (DPL) and LFPB for limited-payment products are presented as offsetting line items in the effect of net premiums exceeding gross premiums and the effect of decrease/increase of DPL. ($ in millions) Whole Life Term Life Experience Life Limited Pay Whole Life Supplemental Health (1) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables, end of year December 31, 2020 (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 (1) As of January 1, 2021, the net LFPB for Supplemental Health was $163.5 million for cancer, $31.2 million for accident, $32.0 million for disability and $188.8 million for other supplemental health policies. The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 The following table summarizes the balance of and changes in the net liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Balance, end of year December 31, 2020 $ 0.1 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 6.8 Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance 1.7 Total adjustment for the difference between carrying amount and fair value 8.5 Balance, beginning of year January 1, 2021 8.6 Less: Reinsurance recoverable — Balance, beginning of year January 1, 2021, net of reinsurance $ 8.6 The following table presents the effect of the after-tax transition adjustments on consolidated shareholders' equity due to adoption of ASU 2018: ($ in millions) January 1, 2021 AOCI Retained Earnings Liability for future policy benefits $ (496.3) $ (0.2) Deferred policy acquisition costs 71.1 — Deferred sales inducements — — Market risk benefits (1.3) (5.4) Total $ (426.5) $ (5.6) For LFPB, the net transition adjustment is related to the difference in the discount rate used pre-transition and the discount rate at January 1, 2021. At transition, the Company had several instances, at the cohort level, where net premiums exceeded gross premiums which were recorded as an adjustment to retained earnings. For DAC, the Company removed shadow adjustments previously recorded in accumulated other comprehensive income (loss) (i.e., AOCI) for the impact of net unrealized investment gains (losses) that were included in the pre-ASU 2018-12 expected gross profits amortization calculation as of the transition date. For MRBs, the transition adjustment to AOCI relates to the cumulative effect of changes in the instrument-specific credit risk between contract issue date and transition date. The remaining difference between the fair value and carrying amount of MRBs at transition, excluding the amounts recorded in AOCI, was recorded as an adjustment to retained earnings as of the transition date. While the requirements of ASU 2018-12 represent a significant change from legacy GAAP, the adoption of ASU 2018-12 did not impact cash flows on the Company’s policies, or the underlying economics of the Company’s business. The Company's insurance subsidiaries' risk-based capital amounts and ratios, and regulatory dividends are not impacted as the National Association of Insurance Commissioners (NAIC) rejected ASU 2018-12. See Note 11 for summarization of the effects of adopting ASU 2018-12 on the Company's 2022 Consolidated Financial Statements. Significant Accounting Policies The following significant accounting policy has been added to reflect the Company's adoption of ASU 2018-12 as described above. Liability for Future Policy Benefits LFPB, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that include discount rate, mortality, lapses, and expenses. These current assumptions are based on judgments that consider the Company's historical experience, industry data, and other factors. For traditional, limited-payment and supplemental health contracts, such contracts are grouped into cohorts by contract type and issue year. The liability is adjusted for differences between actual and expected experience. With the exception of the expense assumption, the Company reviews its historical and future cash flow assumptions at least annually and updates the net premium ratio used to calculate the liability each time the assumptions are changed. The Company has elected to use expense assumptions that are locked-in at contract inception and are not subsequently reviewed or updated. At least annually, the Company updates its estimate 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 LFPB 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 updating cash flow assumptions, to determine the current period change in liability estimate. This current period change in liability estimate is the liability remeasurement gain or loss. The impact of updated cash flow assumptions as well as the periodic liability remeasurement gain or loss is recognized as Benefits, claims and settlement expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). In subsequent periods, the revised net premiums are used to measure LFPB, subject to future revisions. For traditional and limited-payment contracts, a standard discount rate is used to measure the liabilities that is equivalent to the yield from an A-rated bond. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in other comprehensive income. For liability cash flows that are projected beyond the duration of market-observable A- rated bond, the Company uses the last market-observable yield level, and uses linear interpolation to determine yield assumptions for durations that do not have market-observable yields. Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of LFPB, including discount rate, mortality, lapses, and expenses. DPL is amortized and recognized as premium revenue 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 DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimates of cash flows for DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to Net premiums and contract charges earned presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). DPL is recognized as a component of the Investment contract and future policy benefit reserves presented in the Consolidated Balance Sheets. 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. MRBs include guaranteed minimum death benefits on variable annuity products. MRBs are measured at fair value using a non-option-based valuation model based on current net amounts at risk, market data, Company experience, and other factors. Changes in fair value of MRBs are recognized as a component of Benefits, claims and settlement expenses presented in the Consolidated Statements of Operations and Comprehensive Income (Loss) 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. MRBs are recognized as a component of Policyholders' account balances reserves presented in the Consolidated Balance Sheets. Deferred Policy Acquisition Costs and Deferred Sales Inducements DAC are costs that are incremental and directly related to the successful acquisition of new or renewal insurance contracts. Such costs include the incremental direct costs of contract acquisition, such as sales commissions; the portion of employees' total compensation and payroll-related fringe benefits related directly to time spent performing acquisition activities, such as underwriting, issuing, and processing policies for contracts that have actually been acquired; and other costs related directly to acquisition activities that would not have been incurred if the contract had not been acquired. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. For all life insurance products, the constant level basis used is face amount in force. For all deferred annuity products, the constant level basis used is the deposit amount in force. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on the Company's experience, industry data, and other factors and are consistent with those used for LFPB. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected terminations, due to mortality and lapse experience higher than expected, are recognized in the current period as a reduction of the capitalized balances. Amortization of DAC is recognized as DAC amortization expense presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). The DAC balance is reduced for actual experience in excess of expected experience. Changes in future estimates are recognized prospectively over the remaining expected contract term. Deferred sales inducements (DSIs) are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy. DSIs may be deferred if the Company can demonstrate that the deferred sales inducement amounts are both incremental to the amounts Company credits on similar contracts without sales inducements and the amounts are higher than the contract's expected ongoing crediting rates for periods after the inducement. Day-one bonuses and persistency bonuses generally meet the criteria to be deferred. DSIs are amortized using the same methodology and assumptions used to amortize DAC. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Net Investment Income The components of net investment income for the following periods were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Fixed maturity securities $ 65.2 $ 62.0 $ 132.9 $ 120.6 Equity securities 0.7 4.0 3.4 5.3 Limited partnership interests 15.7 13.2 20.1 26.2 Short-term and other investments 3.5 2.7 7.0 5.4 Investment expenses (2.6) (2.5) (6.2) (5.1) Net investment income - investment portfolio 82.5 79.4 157.2 152.4 Investment income - deposit asset on reinsurance 26.0 25.8 51.7 50.7 Total net investment income $ 108.5 $ 105.2 $ 208.9 $ 203.1 Net Investment Losses Net investment gains (losses) for the following periods were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Fixed maturity securities $ (14.7) $ (2.9) $ (17.1) $ (5.2) Equity securities (3.5) (12.6) (4.5) (28.1) Short-term investments and other 0.8 — 0.3 2.3 Net investment losses $ (17.4) $ (15.5) $ (21.3) $ (31.0) The Company, from time to time, sells fixed maturity securities subsequent to the reporting date that were considered temporarily impaired at such reporting date. Such sales are due to issuer-specific events occurring subsequent to the reporting date that result in a change in the Company's intent to sell a fixed maturity security. The types of events that may result in a sale include significant changes in the economic facts and circumstances related to the invested asset, significant unforeseen changes in liquidity needs, or changes in the Company's investment strategy. Net Investment Losses by Transaction Type The breakdown of net investment gains (losses) by transaction type for the following periods were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Credit loss impairments $ (0.5) $ (1.3) $ (0.5) $ (2.2) Intent-to-sell impairments (6.1) (0.5) (6.1) (1.4) Total impairments (6.6) (1.8) (6.6) (3.6) Sales and other, net (19.3) (1.1) (21.7) — Change in fair value - equity securities 7.7 (12.6) 6.7 (29.7) Change in fair value and gains (losses) realized on settlements - derivatives 0.8 — 0.3 2.3 Net investment losses $ (17.4) $ (15.5) $ (21.3) $ (31.0) Allowance for Credit Loss Impairments on Fixed Maturity Securities The following table presents changes in the allowance for credit loss impairments on fixed maturity securities classified as available for sale for the category of other asset-backed securities (no other categories of fixed maturity securities have an allowance for credit loss impairments): ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Beginning balance $ 1.2 $ 8.3 $ 1.2 $ 7.7 Credit losses on fixed maturity securities for which credit losses were not previously reported 0.5 — 0.5 — Net increase related to credit losses previously reported — 1.3 — 2.2 Reduction of credit allowances related to sales — — — — Write-offs (0.5) (0.1) (0.5) (0.4) Ending balance $ 1.2 $ 9.5 $ 1.2 $ 9.5 Fixed Maturity Securities The Company's investment portfolio is comprised primarily of fixed maturity securities. Amortized cost, net, gross unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows: ($ in millions) Amortized Gross Unrealized Gross Unrealized Fair June 30, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: (1) Mortgage-backed securities $ 650.4 $ 0.8 $ 68.1 $ 583.1 Other, including U.S. Treasury securities 432.4 0.3 63.6 369.1 Municipal bonds 1,342.3 20.2 110.0 1,252.5 Foreign government bonds 26.1 — 1.3 24.8 Corporate bonds 2,053.8 12.6 238.0 1,828.4 Other asset-backed securities 1,207.7 2.7 56.4 1,154.0 Totals $ 5,712.7 $ 36.6 $ 537.4 $ 5,211.9 December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: (1) Mortgage-backed securities $ 638.2 $ 1.3 $ 69.1 $ 570.4 Other, including U.S. Treasury securities 410.0 0.5 67.8 342.7 Municipal bonds 1,380.9 16.9 128.1 1,269.7 Foreign government bonds 35.1 — 1.6 33.5 Corporate bonds 2,161.2 12.7 272.2 1,901.7 Other asset-backed securities 1,131.5 3.6 68.1 1,067.0 Totals $ 5,756.9 $ 35.0 $ 606.9 $ 5,185.0 (1) Fair value includes securities issued by Federal National Mortgage Association (FNMA) of $330.3 million and $330.8 million; Federal Home Loan Mortgage Corporation (FHLMC) of $293.2 million and $273.3 million; and Government National Mortgage Association (GNMA) of $82.4 million and $86.2 million as of June 30, 2023 and December 31, 2022, respectively. The following table presents the fair value and gross unrealized losses for fixed maturity securities in an unrealized loss position as of June 30, 2023 and December 31, 2022, respectively. The Company views the decrease in fair value of all of the fixed maturity securities with unrealized losses as of June 30, 2023 — which was driven largely by increasing interest rates, spread widening, financial market illiquidity and/or market volatility from the date of acquisition — as temporary. As of June 30, 2023, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell the fixed maturity securities with unrealized losses before an anticipated recovery in value. Following significant increases in interest rates throughout 2022, driven mostly by increases in U.S. Treasury yields, rates have mostly stabilized, though not without periods of volatility. As of June 30, 2023, the 10-year U.S. Treasury yield decreased 3 basis points since December 31, 2022, declining from 3.87% as of December 31, 2022 to 3.84% as of June 30, 2023. Additionally, credit spreads tightened during the same time period, with investment grade and high yield tighter by 12 and 64 basis points, respectively. As of June 30, 2023, investment grade and high yield total returns were up 3.23% and 5.42%, respectively, since December 31, 2022. As of June 30, 2023, the Bloomberg Barclays Index Yield-to-Worst for Investment Grade declined 0.06% since December 31, 2022, ending at 5.48%, while the High Yield Index declined 0.46% to 8.50% since December 31, 2022. As of recent, unrealized investment losses remain elevated as a result of interest rates remaining at relatively high levels. Therefore, it was determined that the unrealized losses on the fixed maturity securities presented in the table below were not indicative of any credit loss impairments as of June 30, 2023. ($ in millions) 12 Months or Less More than 12 Months Total Fair Value Gross Fair Value Gross Fair Value Gross June 30, 2023 Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 211.9 $ 12.1 $ 327.6 $ 56.0 $ 539.5 $ 68.1 Other 147.6 6.6 203.8 57.0 351.4 63.6 Municipal bonds 302.8 8.9 634.9 101.1 937.7 110.0 Foreign government bonds 21.8 0.7 2.9 0.6 24.7 1.3 Corporate bonds 186.5 11.0 1,119.2 227.0 1,305.7 238.0 Other asset-backed securities 214.8 5.3 804.0 51.1 1,018.8 56.4 Total $ 1,085.4 $ 44.6 $ 3,092.4 $ 492.8 $ 4,177.8 $ 537.4 Number of positions with a gross unrealized loss 742 2,227 2,969 Fair value as a percentage of total fixed maturity securities at fair value 20.8 % 59.3 % 80.1 % December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 458.3 $ 54.4 $ 52.6 $ 14.7 $ 510.9 $ 69.1 Other 242.7 34.1 65.8 33.7 308.5 67.8 Municipal bonds 911.6 113.7 42.2 14.4 953.8 128.1 Foreign government bonds 32.7 1.4 0.4 0.2 33.1 1.6 Corporate bonds 1,345.0 221.1 148.9 51.1 1,493.9 272.2 Other asset-backed securities 543.4 37.1 424.3 31.0 967.7 68.1 Total $ 3,533.7 $ 461.8 $ 734.2 $ 145.1 $ 4,267.9 $ 606.9 Number of positions with a gross unrealized loss 2,515 587 3,102 Fair value as a percentage of total fixed maturity securities at fair value 68.2 % 14.2 % 82.4 % With regards to fixed maturity securities that had gross unrealized losses more than 12 months, the number of positions by their respective credit ratings were as follows: Number of Positions June 30, 2023 December 31, 2022 Credit Rating AAA 229 67 AA 835 217 A 399 94 BBB 436 93 BB 183 68 B 85 31 CCC or lower 5 2 Not rated 55 15 Totals: 2,227 587 Fixed maturity securities with an investment grade rating represented 97.2% of the gross unrealized losses as of June 30, 2023. With respect to fixed maturity securities involving securitized financial assets, the underlying collateral cash flows were stress tested to determine there was no adverse change in the present value of cash flows below the net amortized cost basis. Maturities of Fixed Maturity Securities The following table presents the distribution of the Company’s fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. ($ in millions) Percent of Total Fair Value June 30, 2023 June 30, 2023 December 31, 2022 Fair Amortized Estimated expected maturity: Due in 1 year or less 4.9 % 4.4 % $ 253.5 $ 261.6 Due after 1 year through 5 years 26.7 26.3 1,390.7 1,448.0 Due after 5 years through 10 years 27.5 27.9 1,431.8 1,520.5 Due after 10 years through 20 years 24.6 25.0 1,286.9 1,444.5 Due after 20 years 16.3 16.4 849.0 1,038.1 Total 100.0 % 100.0 % $ 5,211.9 $ 5,712.7 Average option-adjusted duration, in years 6.2 6.4 Sales of Fixed Maturity and Equity Securities Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Fixed maturity securities Proceeds received $ 143.5 $ 197.0 $ 206.2 $ 365.3 Gross gains realized 0.3 1.2 0.6 3.6 Gross losses realized (8.4) (2.3) (11.1) (5.2) Equity securities Proceeds received $ 9.8 $ — $ 9.8 $ 5.8 Gross gains realized — — — 1.7 Gross losses realized (11.3) — (11.3) (0.1) Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities The following table reconciles net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Net unrealized investment gains (losses) Beginning of period $ (356.4) $ 13.0 $ (449.6) $ 347.1 Change in net unrealized investment gains (48.9) (297.1) 42.4 (633.0) Reclassification of net investment losses 11.6 2.3 13.5 4.1 End of period $ (393.7) $ (281.8) $ (393.7) $ (281.8) Limited Partnership Interests Investments in limited partnership interests are accounted for using the equity method of accounting (EMA) and include interests in commercial mortgage loan funds, private equity funds, infrastructure equity funds, real estate equity funds, infrastructure debt funds and other funds. Principal factors influencing carrying amount appreciation or depreciation include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. The Company recognizes an impairment loss for EMA limited partnership interests when evidence demonstrates that the loss is other than temporary. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment. The carrying amounts of EMA limited partnership interests were as follows: ($ in millions) June 30, 2023 December 31, 2022 Commercial mortgage loan funds $ 642.7 $ 593.6 Private equity funds 80.6 76.3 Infrastructure equity funds 72.4 72.0 Real estate equity funds 86.8 71.3 Infrastructure debt funds 62.8 60.0 Other funds (1) 128.5 110.5 Total $ 1,073.8 $ 983.7 (1) Other funds consist primarily of limited partnership interests in corporate mezzanine, venture capital and private credit funds. Offsetting of Assets and Liabilities The Company's derivatives are subject to enforceable master netting arrangements. Collateral support agreements associated with each master netting arrangement provides that the Company will receive or pledge financial collateral in the event minimum thresholds have been reached. The Company’s reverse repurchase agreements are also subject to enforceable master netting arrangements but there was no offsetting in their presentation in the Company’s Consolidated Balance Sheets. Information regarding the Company's derivatives is contained in Part II - Item 8, Note 5 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The following table presents instruments that were subject to a master netting arrangement for the Company. ($ in millions) Gross Net Amounts Gross Amounts Not Offset Gross Financial Cash Net June 30, 2023 Asset derivatives: Free-standing derivatives $ 12.7 $ — $ 12.7 $ — $ 12.0 $ 0.7 December 31, 2022 Asset derivatives: Free-standing derivatives $ 6.8 $ — $ 6.8 $ — $ 5.9 $ 0.9 Reverse Repurchase Agreements In connection with reverse repurchase agreements, the Company transfers primarily U.S. government, government agency and corporate securities and receives cash. For reverse repurchase agreements, the Company receives cash in an amount equal to at least 95% of the fair value of the securities transferred, and the agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The Company accounts for reverse repurchase agreements as secured borrowings. The securities transferred under reverse repurchase agreements are included in Fixed maturity securities with the obligation to repurchase those securities reported in Other liabilities on the Company's Consolidated Balance Sheets. The fair value of the securities transferred wa s $0.4 million as of June 30, 2023 and $73.3 million as of December 31, 2022. The obligation for securities sold under reverse repurchase agreements was a net amount of $0.2 million as of June 30, 2023 and $70.2 million December 31, 2022. Deposits As of June 30, 2023 and December 31, 2022, fixed maturity securities with a fair value of $28.8 million and $28.6 million, respectively, were on deposit with governmental agencies as required by law in various states for which the insurance subsidiaries of HMEC conduct business. In addition, as of June 30, 2023 and December 31, 2022, fixed maturity securities with a fair value of $961.6 million and $860.4 million, respectively, were on deposit with the Federal Home Loan Bank of Chicago (FHLB) as collateral for amounts subject to funding agreements, advances and borrowings which were equal to $889.5 million as of June 30, 2023 and $792.5 million as of December 31, 2022. The deposited securities are reported as Fixed maturity securities on the Company’s Consolidated Balance Sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company is required to disclose estimated fair values for certain financial and nonfinancial assets and liabilities. Fair values of the Company’s insurance contracts other than annuity contracts (which are investment contracts) and EMA limited partnership interests are not required to be disclosed. However, the estimated fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk through appropriate matching of investment maturities with amounts due under insurance contracts. Information regarding the three-level fair value hierarchy presented below and the valuation methodologies utilized by the Company to estimate fair values at each reporting date is included in Part II - Item 8, Note 4 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Financial Instruments Measured and Carried at Fair Value on a Recurring Basis The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. During the six months ended June 30, 2023 and 2022, there were no transfers between Level 1 and Level 2. As of June 30, 2023, Level 3 invested assets comprised 8.8% of the Company’s total investment portfolio at fair value. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 June 30, 2023 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 583.1 $ 583.1 $ — $ 580.6 $ 2.5 Other, including U.S. Treasury securities 369.0 369.0 44.8 324.2 — Municipal bonds 1,252.6 1,252.6 — 1,188.7 63.9 Foreign government bonds 24.8 24.8 — 24.8 — Corporate bonds 1,828.4 1,828.4 13.0 1,503.9 311.5 Other asset-backed securities 1,154.0 1,154.0 — 1,055.1 98.9 Total fixed maturity securities 5,211.9 5,211.9 57.8 4,677.3 476.8 Equity securities 85.8 85.8 18.0 65.8 2.0 Short-term investments 74.0 74.0 74.0 — — Other investments 45.8 45.8 — 45.8 — Totals $ 5,417.5 $ 5,417.5 $ 149.8 $ 4,788.9 $ 478.8 Separate Account variable annuity assets (1) $ 3,098.5 $ 3,098.5 $ 3,098.5 $ — $ — Financial Liabilities (2) $ 86.2 $ 86.2 $ — $ 2.6 $ 83.6 December 31, 2022 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 570.4 $ 570.4 $ — $ 567.8 $ 2.6 Other, including U.S. Treasury securities 342.6 342.6 24.6 318.0 — Municipal bonds 1,269.7 1,269.7 — 1,215.3 54.4 Foreign government bonds 33.6 33.6 — 33.6 — Corporate bonds 1,901.7 1,901.7 12.2 1,628.2 261.3 Other asset-backed securities 1,067.0 1,067.0 — 962.0 105.0 Total fixed maturity securities 5,185.0 5,185.0 36.8 4,724.9 423.3 Equity securities 99.6 99.6 23.3 74.3 2.0 Short-term investments 109.4 109.4 109.4 — — Other investments 38.6 38.6 — 38.6 — Totals $ 5,432.6 $ 5,432.6 $ 169.5 $ 4,837.8 $ 425.3 Separate Account (variable annuity) assets (1) $ 2,792.3 $ 2,792.3 $ 2,792.3 $ — $ — Financial Liabilities (2) $ 92.5 $ 92.5 $ — $ 1.2 $ 91.3 (1) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of the Separate Account variable annuity assets. (2) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. Changes in Level 3 Fair Value Measurements The reconciliation for all financial assets and financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows: ($ in millions) Financial Assets Financial Liabilities (1) Municipal Corporate Mortgage-Backed and Other Asset- Backed Securities (2) Total Equity Total Beginning balance, April 1, 2023 $ 55.4 $ 284.0 $ 104.6 $ 444.0 $ 2.0 $ 446.0 $ 91.2 Transfers into Level 3 (3) — 30.2 0.4 30.6 — 30.6 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net gains/losses included in net income — — — — — — (3.4) Net unrealized gains/losses included in OCI (0.8) (2.2) (0.7) (3.7) — (3.7) (0.9) Purchases 9.5 6.6 — 16.1 — 16.1 — Issuances — — — — — — 2.2 Sales — (5.1) — (5.1) — (5.1) — Settlements — — — — — — — Paydowns, maturities and distributions (0.2) (2.0) (2.9) (5.1) — (5.1) (5.5) Ending balance, June 30, 2023 $ 63.9 $ 311.5 $ 101.4 $ 476.8 $ 2.0 $ 478.8 $ 83.6 Beginning balance, January 1, 2023 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.3 Transfers into Level 3 (3) — 36.1 0.8 36.9 — 36.9 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net gains/losses included in net income — — — — — — (2.5) Net unrealized gains/losses included in OCI 0.5 (1.2) (1.1) (1.8) — (1.8) (0.6) Purchases 9.5 25.6 0.3 35.4 — 35.4 — Issuances — — — — — — 4.3 Sales — (7.7) — (7.7) — (7.7) — Settlements — — — — — — — Paydowns, maturities and distributions (0.5) (2.6) (6.2) (9.3) — (9.3) (8.9) Ending balance, June 30, 2023 $ 63.9 $ 311.5 $ 101.4 $ 476.8 $ 2.0 $ 478.8 $ 83.6 (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the three and six months ended June 30, 2023 and 2022 were related to changes in the primary pricing source and changes in observability of external information used in determining fair value. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. ($ in millions) Financial Assets Financial (1) Municipal Corporate Mortgage-Backed and Other Asset- Backed Securities (2) Total Equity Total Beginning balance, April 1, 2022 $ 54.1 $ 226.0 $ 89.8 $ 369.9 $ 1.3 $ 371.2 $ 103.1 Transfers into Level 3 (3) — 56.0 17.5 73.5 — 73.5 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net gains/losses included in net income — — (1.4) (1.4) 0.1 (1.3) (2.0) Net unrealized gains/losses included in OCI (2.8) (4.9) (3.2) (10.9) — (10.9) (2.0) Purchases — 4.9 — 4.9 — 4.9 — Issuances — — — — — — 1.2 Sales — — (2.1) (2.1) — (2.1) — Settlements — — — — — — — Paydowns, maturities and distributions (0.3) (11.5) (3.5) (15.3) — (15.3) (2.5) Ending balance, June 30, 2022 $ 51.0 $ 270.5 $ 97.1 $ 418.6 $ 1.4 $ 420.0 $ 97.8 Beginning balance, January 1, 2022 $ 60.8 $ 210.3 $ 98.9 $ 370.0 $ 1.4 $ 371.4 $ 111.4 Transfers into Level 3 (3) — 123.4 22.3 145.7 — 145.7 — Transfers out of Level 3 (3) (3.2) — (4.8) (8.0) — (8.0) — Total gains or losses Net gains/losses included in net income — — (2.3) (2.3) — (2.3) (7.6) Net unrealized gains/losses included in OCI (6.2) (11.3) (7.4) (24.9) — (24.9) (2.4) Purchases — 4.9 — 4.9 — 4.9 — Issuances — — — — — — 2.1 Sales — — (2.1) (2.1) — (2.1) — Settlements — — — — — — — Paydowns, maturities and distributions (0.4) (56.8) (7.5) (64.7) — (64.7) (5.7) Ending balance, June 30, 2022 $ 51.0 $ 270.5 $ 97.1 $ 418.6 $ 1.4 $ 420.0 $ 97.8 (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the three and six months ended June 30, 2022 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. For the three and six months ended June 30, 2023, the Company had no net gains or losses with respect to Level 3 financial assets. For the three and six months ended June 30, 2022, the Company had net losses of $1.3 million and $2.3 million, respectively, that were included in net income with respect to Level 3 financial assets. For the three and six months ended June 30, 2023, the Company had net gains of $3.4 million and $2.5 million, respectively, that were included in net income and were attributable to changes in the fair value of Level 3 financial liabilities. For the three and six months ended June 30, 2022, the Company had net gains of $2.0 million and $7.6 million, respectively, that were included in net income and were attributable to changes in the fair value of Level 3 financial liabilities. Quantitative Information about Level 3 Fair Value Measurements The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3. ($ in millions) Financial Fair Value as of June 30, 2023 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Municipal bonds $ 63.9 discounted cash flow option adjusted spread 308 bps Corporate bonds 311.5 discounted cash flow yield 6.1% vendor priced vendor priced 79.64 discounted cash flow yield 11.0% market comparable EV / Fwd EBITDA (x) 5.92x discounted cash flow discount rate 6.2% - 10.7% discounted cash flow exit cap 6.2% discounted cash flow option adjusted spread 241 bps Mortgage-backed and other asset-backed securities 101.4 vendor price haircut 0.01% -0.3% discounted cash flow discount margin 39.5% discounted cash flow discount rate 16.0% - 21.0% discounted cash flow median comparable yield 20.7% - 43.2% discounted cash flow yield 6.4% - 6.5% discounted cash flow LIBOR 2.3% discounted cash flow PDI spread 5.5% discounted cash flow SBL spread 4.5% discounted cash flow weighting 17.0% - 83.0% discounted cash flow CPR 20.0% discounted cash flow default rate annual 4.0% discounted cash flow recovery 65.0% discounted cash flow I spread 175 bps discounted cash flow N spread 463 bps discounted cash flow T Spread 226 bps market comparable median price 81.34 Equity securities 2.0 black-scholes volatility low 28.0% - high 44.0% black-scholes time to exit 2.67 bps market comparable price/book ExAOCI 1.06x ($ in millions) Financial Fair Value as of June 30, 2023 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Derivatives $ 87.2 discounted cash flow lapse rate 5.4% mortality multiplier (4) 67.8% option budget 0.9% - 3.8% non-performance adjustment (5) 5.0% Net MRBs $ (3.6) discounted cash flow lapse rate 5.3% mortality multiplier (4) 67.8% (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) "N spread" is the interpolated weighted average life point on the swap curve. (3) "T spread" is a specific point on the OTR curve. (4) Mortality multiplier is applied to the Annuity 2000 table. (5) Determined as a percentage of the risk-free rate. The valuation techniques and significant unobservable inputs used in the fair value measurement for financial assets and financial liabilities classified as Level 3 are subject to the control processes as described in Part II - Item 8, Note 4 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Generally, valuation techniques for fixed maturity securities include spread pricing, matrix pricing and discounted cash flow methodologies; include inputs such as quoted prices for identical or similar securities that are less liquid; and are based on lower levels of trading activity than securities classified as Level 2. The valuation techniques and significant unobservable inputs used in the fair value measurement for equity securities classified as Level 3 use similar valuation techniques and significant unobservable inputs as those used for fixed maturity securities. The sensitivity of the estimated fair values to changes in the significant unobservable inputs for fixed maturity and equity securities included in Level 3 include: benchmark yield, liquidity premium, estimated cash flows, prepayment and default speeds, spreads, weighted average life and credit rating. Significant spread widening in isolation will adversely impact the overall valuation, while significant tightening will lead to substantial valuation increases. Significant increases (decreases) in illiquidity premiums in isolation will result in substantially lower (higher) valuations. Significant increases (decreases) in expected default rates in isolation will result in substantially lower (higher) valuations. Financial Instruments Not Carried at Fair Value The Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. These financial assets and financial liabilities are further described in Part II - Item 8, Note 4 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The following table presents the carrying amount, fair value and fair value hierarchy of these financial assets and financial liabilities. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 June 30, 2023 Financial Assets Other investments $ 178.3 $ 181.8 $ — $ — $ 181.8 Deposit asset on reinsurance 2,514.9 2,233.6 — — 2,233.6 Financial Liabilities Investment contract and future policy benefit reserves, fixed annuity contracts 4,925.1 4,825.4 — — 4,825.4 Investment contract and future policy benefit reserves, account values on life contracts 114.9 110.9 — — 110.9 Other policyholder funds 897.2 897.2 — 889.9 7.3 Reverse repurchase agreements 0.2 0.4 — 0.4 — Short-term debt 249.0 249.0 — — 249.0 Long-term debt 249.1 236.1 — 236.1 — December 31, 2022 Financial Assets Other investments $ 167.4 $ 170.9 $ — $ — $ 170.9 Deposit asset on reinsurance 2,516.6 2,207.2 — — 2,207.2 Financial Liabilities Investment contract and future policy benefit reserves, fixed annuity contracts 4,988.5 4,901.3 — — 4,901.3 Investment contract and future policy benefit reserves, account values on life contracts 111.9 107.7 — — 107.7 Other policyholder funds 863.0 863.0 — 810.7 52.3 Reverse repurchase agreements 70.2 73.3 — 73.3 — Short-term debt 249.0 249.0 — — 249.0 Long-term debt 249.0 240.5 — 240.5 — |
Short-Duration Insurance Contra
Short-Duration Insurance Contracts | 6 Months Ended |
Jun. 30, 2023 | |
Insurance Loss Reserves [Abstract] | |
Short-Duration Insurance Contracts | Short-Duration Insurance Contracts Property & Casualty Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending Property & Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Property & Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Property & Casualty Beginning gross reserves $ 397.8 $ 356.2 $ 388.7 $ 362.4 Less: reinsurance recoverables 101.3 108.0 100.8 110.3 Net reserves, beginning of period (1) 296.5 248.2 287.9 252.1 Incurred claims and claim expenses: Claims occurring in the current period 152.0 144.1 280.8 252.4 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) — 6.0 — 6.0 Total claims and claim expenses incurred 152.0 150.1 280.8 258.4 Claims and claim expense payments for claims occurring during: Current period 90.2 84.4 130.8 118.2 Prior periods 46.8 45.3 126.4 123.7 Total claims and claim expense payments 137.0 129.7 257.2 241.9 Net reserves, end of period (1) 311.5 268.6 311.5 268.6 Plus: reinsurance recoverables 104.3 109.8 104.3 109.8 Ending gross reserves $ 415.8 $ 378.4 $ 415.8 $ 378.4 (1) Reserves net of expected reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development. There was no prior years' reserve development for Property & Casualty claims for the three and six months ended June 30, 2023. The Company recognized $6.0 million of net unfavorable prior years' reserve development for the three and six months ended June 30, 2022. The unfavorable development for the six months ended June 30, 2022 was the result of unfavorable loss trends in auto offset by favorable loss trends in homeowners loss emergence for accident years 2021 and prior. Group Benefits Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance). The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Group Benefits Beginning gross reserves $ 120.3 $ 133.2 $ 121.6 $ 125.4 Less: reinsurance recoverables 28.0 29.8 27.9 28.6 Net reserves, beginning of period (1) 92.3 103.4 93.7 96.8 Incurred claims and claim expenses: Claims occurring in the current period 20.8 16.2 41.0 44.9 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) (3.0) (0.1) (7.9) (2.0) Total claims and claim expenses incurred 17.8 16.1 33.1 42.9 Claims and claim expense payments for claims occurring during: Current period 8.9 11.4 13.1 15.8 Prior periods 7.6 7.5 20.0 23.4 Total claims and claim expense payments 16.5 18.9 33.1 39.2 Net reserves, end of period (1) 93.7 100.6 93.7 100.6 Plus: reinsurance recoverables 28.2 29.6 28.2 29.6 Ending gross reserves $ 121.9 $ 130.2 $ 121.9 $ 130.2 (1) Reserves net of expected reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development. Favorable prior years' reserve development for Group Benefits wa s $7.9 million and $2.0 million f or the six months ended June 30, 2023 and 2022, respectively. The favorable development for the three months ended June 30, 2023 was primarily the result of favorable loss trends in specialty health and group life and disability for loss years 2022 and prior. The favorable development for the three months ended June 30, 2022 was primarily the result of favorable loss trends in specialty health for loss years 2021 and prior. Reconciliation of Property & Casualty and Group Benefits Unpaid Claims and Claim Expense Reserves to the Consolidated Balance Sheets ($ in millions) As of June 30, 2023 As of December 31, 2022 Ending gross reserves Property & Casualty $ 415.8 $ 388.7 Group Benefits 121.9 121.6 Total short-duration insurance contracts 537.7 510.3 Other than short-duration (1) 60.1 53.7 Total unpaid claims and claims expenses $ 597.8 $ 564.0 (1) |
Long-Duration Insurance Contrac
Long-Duration Insurance Contracts | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Long-Duration Insurance Contracts | Long-Duration Insurance Contracts Liability for Future Policy Benefits As of and for the three and six months ended June 30, 2023 and 2022, the Company updated the net premium ratio when updating for actual historical experience for the quarter; future cash flow assumptions were reviewed but not changed. The following tables summarize balances and changes in LFPB for traditional and limited-payment contracts. The balances of and changes in LFPB as of and for the three months ended June 30, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at April 1, 2023 $ 222.2 $ 243.8 $ 69.8 $ 31.2 $ 172.5 $ — April 1, 2023 balance at original discount rate 246.6 266.0 65.0 33.1 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (5.3) — — — — Actual variances from expected experience 1.0 0.5 0.5 0.8 1.7 — Adjusted balance at April 1, 2023 247.6 261.2 65.5 33.9 206.8 — Issuances (3) 2.6 6.5 — 1.1 4.6 1.4 Interest accruals (4) 1.8 2.7 0.8 0.3 1.5 — Net premiums collected (5) (5.0) (5.3) (1.6) (1.1) (5.4) (1.4) June 30, 2023 balance at original discount rate 247.0 265.1 64.7 34.2 207.5 — Effect of changes in discount rate assumptions (29.5) (24.8) 3.4 (2.5) (35.5) — Balance at June 30, 2023 217.5 240.3 68.1 31.7 172.0 — Present value of expected future policy benefits: Balance at April 1, 2023 515.1 365.0 892.5 84.4 437.7 105.9 April 1, 2023 balance at original discount rate 585.4 405.2 801.5 100.3 530.6 113.3 Effect of: Changes in cash flow assumptions — (5.6) — — — — Actual variances from expected experience 1.1 2.2 0.5 0.9 1.8 — Adjusted balance at April 1, 2023 586.5 401.8 802.0 101.2 532.4 113.3 Issuances 2.6 6.6 — 1.1 4.6 1.6 Interest accruals 4.7 3.5 11.9 1.0 3.6 1.1 Benefit payments (6) (5.1) (5.5) (14.3) (0.7) (14.8) (3.0) June 30, 2023 balance at original discount rate 588.7 406.4 799.6 102.6 525.8 113.0 Effect of changes in discount rate assumptions (81.6) (45.8) 71.9 (17.3) (99.2) (9.4) Balance at June 30, 2023 507.1 360.6 871.5 85.3 426.6 103.6 Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 Less: Reinsurance recoverable (63.1) (16.7) (0.7) (0.2) (3.9) (3.5) Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at June 30, 2023 $ 226.3 $ 103.6 $ 802.8 $ 53.5 $ 250.6 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the six months ended June 30, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at January 1, 2023 $ 215.1 $ 234.7 $ 68.3 $ 29.7 $ 167.4 $ — January 1, 2023 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (5.3) — — — — Actual variances from expected experience 1.8 (1.0) 0.7 1.3 0.3 — Adjusted balance at January 1, 2023 247.7 259.1 66.2 33.7 205.4 — Issuances (3) 5.4 13.0 — 2.1 9.9 3.4 Interest accruals (4) 3.6 5.2 1.8 0.6 3.0 — Net premiums collected (5) (9.7) (12.2) (3.3) (2.2) (10.8) (3.4) June 30, 2023 balance at original discount rate 247.0 265.1 64.7 34.2 207.5 — Effect of changes in discount rate assumptions (29.5) (24.8) 3.4 (2.5) (35.5) — Balance at June 30, 2023 217.5 240.3 68.1 31.7 172.0 — Present value of expected future policy benefits: Balance at January 1, 2023 493.6 347.0 867.5 79.4 431.7 103.3 January 1, 2023 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of: Changes in cash flow assumptions — (5.6) — — — — Actual variances from expected experience 1.9 0.7 0.9 1.5 0.1 (0.5) Adjusted balance at January 1, 2023 583.8 396.1 806.1 100.1 537.2 112.9 Issuances 5.5 13.2 — 2.1 9.9 4.0 Interest accruals 9.4 7.5 23.8 1.9 7.2 2.2 Benefit payments (6) (10.0) (10.4) (30.3) (1.5) (28.5) (6.1) June 30, 2023 balance at original discount rate 588.7 406.4 799.6 102.6 525.8 113.0 Effect of changes in discount rate assumptions (81.6) (45.8) 71.9 (17.3) (99.2) (9.4) Balance at June 30, 2023 507.1 360.6 871.5 85.3 426.6 103.6 Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 Less: Reinsurance recoverable (63.1) (16.7) (0.7) (0.2) (3.9) (3.5) Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at June 30, 2023 $ 226.3 $ 103.6 $ 802.8 $ 53.5 $ 250.6 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present Value of Expected Net Premiums Balance at January 1, 2022 (7) $ 260.7 $ 264.4 $ 74.6 $ 29.7 $ 226.7 $ — January 1, 2022 balance at original discount rate (7) 239.3 235.4 55.9 27.2 223.1 — Effect of: Change in cash flow assumptions 5.2 18.7 9.1 2.0 12.2 — Actual variances from expected experience 7.2 (4.2) 3.0 1.6 (25.3) — Adjusted balance at January 1, 2022 251.7 249.9 68.0 30.8 210.0 — Issuances (3) 12.5 28.0 — 6.3 12.0 5.3 Interest accruals (3) 6.7 9.0 3.3 1.1 5.9 — Net premiums collected (5) (25.0) (21.5) (5.8) (5.8) (22.8) (5.3) December 31, 2022 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of changes in discount rate assumptions (30.8) (30.7) 2.8 (2.7) (37.7) — Balance at December 31, 2022 215.1 234.7 68.3 29.7 167.4 — Present Value of Expected Future Policy Benefits Balance at January 1, 2022 (7) 660.4 411.5 1,172.7 102.9 590.6 129.1 January 1, 2022 balance at original discount rate (7) 566.1 360.0 802.6 86.6 584.2 115.7 Effect of: Changes in cash flow assumptions 5.2 21.5 11.0 2.0 13.8 — Actual variances from expected experience 7.7 (4.7) 3.6 1.4 (30.0) 0.4 Adjusted balance at January 1, 2022 579.0 376.8 817.2 90.0 568.0 116.1 Issuances 12.4 28.3 — 6.4 12.0 5.3 Interest accruals 18.0 14.4 47.4 3.4 15.0 4.3 Benefit payments (6) (27.5) (18.5) (59.4) (1.2) (57.9) (12.3) December 31, 2022 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of changes in discount rate assumptions (88.3) (54.0) 62.3 (19.2) (105.4) (10.1) Balance at December 31, 2022 493.6 347.0 867.5 79.4 431.7 103.3 Net liability for future policy benefits 278.4 112.2 799.3 49.6 264.4 103.3 Less: Reinsurance recoverable (63.1) (15.3) (0.8) — (3.4) (3.2) Net liability for future policy benefits, after reinsurance recoverable 215.3 96.9 798.5 49.6 261.0 100.1 Impact of flooring on net liability for future policy benefits 1.1 0.2 — — — — Net liability for future policy benefits at December 31, 2022 $ 216.4 $ 97.1 $ 798.5 $ 49.6 $ 261.0 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. (7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022. The balances of and changes in LFPB (including a summary of the balance and changes in the LFPB on January 1, 2021 due to adoption of ASU 2018-12) as of and for the year ended December 31, 2021 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Change in cash flow assumptions, effect of decrease of the DPL — — — — — — Adjustment for removal of related balances in AOCI — — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 Present Value of Expected Net Premiums Balance at January 1, 2021 $ 176.5 $ 244.1 $ 78.0 $ 25.4 $ 233.0 $ — January 1, 2021 balance at original discount rate 143.5 200.8 55.2 22.0 218.2 — Effect of: Change in cash flow assumptions 2.4 (4.5) (3.3) — (1.8) — Actual variances from expected experience 8.8 6.9 6.3 1.0 6.3 — Adjusted balance at January 1, 2021 154.7 203.2 58.2 23.0 222.7 — Issuances (3) 13.3 29.8 — 10.2 13.0 3.7 Interest accruals (4) 6.2 7.9 3.2 0.8 5.9 — Net premiums collected (5) (16.6) (19.8) (5.6) (6.8) (24.1) (3.7) December 31, 2021 balance at original discount rate 157.6 221.1 55.8 27.2 217.5 — Effect of changes in discount rate assumptions 25.4 32.0 18.8 2.5 4.0 — Balance at December 31, 2021 183.0 253.1 74.6 29.7 221.5 — Present Value of Expected Future Policy Benefits Balance at January 1, 2021 507.1 364.7 1,269.3 95.0 626.9 136.5 January 1, 2021 balance at original discount rate 362.5 294.0 813.5 73.4 589.1 115.9 Effect of: Changes in cash flow assumptions 2.8 (4.8) (3.6) — (3.0) — Actual variances from expected experience 8.7 7.2 6.6 1.1 6.2 (0.4) Adjusted balance at January 1, 2021 374.0 296.4 816.5 74.5 592.3 115.5 Issuances 13.3 29.8 — 10.2 13.0 3.7 Interest accruals 17.1 12.0 47.9 2.9 15.7 4.5 Benefit payments (5) (18.1) (18.7) (61.9) (1.0) (48.4) (12.1) December 31, 2021 balance at original discount rate 386.3 319.5 802.5 86.6 572.6 111.6 Effect of changes in discount rate assumptions 114.4 51.1 370.2 16.3 8.0 13.1 Balance at December 31, 2021 500.7 370.6 1,172.7 102.9 580.6 124.7 Net liability for future policy benefits 317.7 117.6 1,098.1 73.2 359.1 124.7 Less: Reinsurance recoverable (0.5) (5.5) (1.1) (0.2) — — Net liability for future policy benefits, after reinsurance recoverable $ 317.2 $ 112.1 $ 1,097.0 $ 73.0 $ 359.1 $ 124.7 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2021, the net LFPB for Supplemental Health was $140.8 million for cancer, $28.7 million for accident, $29.3 million for disability and $160.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets: ($ in millions) June 30, 2023 December 31, 2022 Whole life $ 289.4 $ 279.5 Term life 120.3 112.4 Experience life 803.5 799.3 Limited-pay whole life 53.7 49.6 Supplemental health 254.5 264.4 SPIA (life contingent) 103.6 103.3 Limited-pay whole life DPL 3.4 3.2 SPIA (life contingent) DPL 1.0 0.8 Reconciling items (1) 111.5 105.5 Total $ 1,740.9 $ 1,718.0 (1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves. The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): ($ in millions) Gross premiums or assessments Gross premiums or assessments Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Whole life $ 6.7 $ 6.2 $ 13.3 $ 12.3 Term life 11.4 10.4 22.2 20.3 Experience life 7.9 8.3 16.1 16.8 Limited-pay whole life 1.7 2.5 3.3 4.3 Supplemental health 30.0 30.6 59.7 61.3 SPIA (life contingent) 1.4 0.8 3.6 3.3 Total $ 59.1 $ 58.8 $ 118.2 $ 118.3 ($ in millions) Interest expense Interest expense Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Whole life $ 2.9 $ 2.9 $ 5.8 $ 5.6 Term life 1.2 1.1 2.4 2.2 Experience life 10.9 11.0 21.9 22.1 Limited-pay whole life 0.7 0.6 1.3 1.2 Supplemental health 2.1 2.3 4.3 4.7 SPIA (life contingent) 1.1 1.1 2.2 2.2 Total $ 18.9 $ 19.0 $ 37.9 $ 38.0 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: ($ in millions) As of June 30, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 473.5 $ 325.1 $ 469.0 $ 322.5 Expected future benefits and expenses 1,134.3 588.7 1,121.4 580.4 Term life Expected future gross premiums 751.4 469.0 739.3 464.2 Expected future benefits and expenses 693.9 406.4 678.0 401.0 Experience Life Expected future gross premiums 551.9 306.7 569.6 315.5 Expected future benefits and expenses 1,728.7 799.6 1,755.4 805.2 Limited-pay whole life Expected future gross premiums 63.1 48.1 60.8 46.5 Expected future benefits and expenses 234.6 102.6 226.8 98.6 Supplemental health Expected future gross premiums 1,645.7 1,213.6 1,640.5 1,214.9 Expected future benefits and expenses 720.7 525.8 730.4 537.0 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 158.1 113.0 157.7 113.4 For the six months ended June 30, 2023 and for the year ended December 31, 2022, net premiums exceeded gross premiums for several cohorts in the Whole Life and Term Life product lines. This resulted in an immaterial change to current period benefit expense for both periods. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.4% 1.7 % 0.1 % N.M. Expected experience 0.7 % 0.1% - 1.2% 1.6 % 0.2 % N.M. Lapses Actual experience 3.4 % 3.6% - 5.6% 3.1 % 3.6 % N.M. Expected experience 4.7 % 5.6% - 25.9% 3.1 % 5.2 % N.M. June 30, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.8 % 0.1% - 0.1% 1.7 % 0.2 % N.M. Expected experience 0.7 % 0.1% - 0.1% 1.4 % 0.2 % N.M. Lapses Actual experience 3.1 % 5.0% - 64.1% 3.4 % 3.1 % N.M. Expected experience 5.8 % 4.9% - 6.0% 3.2 % 7.4 % N.M. The following table provides the weighted-average durations of LFPB, in years: As of June 30, 2023 2022 Whole life 18.0 18.0 Term life 16.4 15.9 Experience life 10.5 10.8 Limited-pay whole life 22.2 21.5 Supplemental health 10.3 9.8 SPIA (life contingent) 7.7 7.7 The following table provides ranges of the weighted-average interest rates for LFPB: As of June 30, 2023 2022 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 5.0% Current discount rate 4.7% - 5.2% 4.1% - 4.6% Term life Interest accretion rate 4.1% - 4.3% 4.1% - 4.4% Current discount rate 5.2% - 5.2% 4.6% - 4.6% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.2 % 4.7 % Limited-pay whole life Interest accretion rate 3.9 % 3.9 % Current discount rate 5.2 % 4.7 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.2% - 5.3% 4.5% - 5.0% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.0% Current discount rate 5.2% - 5.2% 4.5% - 4.5% Liability for Policyholders' Account Balances The Company recognizes a liability for policyholders' account balances. The following tables summarize balances of and changes in policyholders' account balances: ($ in millions) Three Months Ended June 30, 2023 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at April 1, 2023 $ 49.9 $ 63.5 $ 4,577.4 $ 498.4 $ 33.8 Premiums received (1) $ 3.1 $ (0.2) $ 59.0 $ 5.4 $ 1.0 Surrenders and withdrawals (2) (0.3) (0.6) (103.9) (18.6) (0.1) Benefit payments (3) — (0.4) (17.8) (0.9) (1.4) Net transfers from (to) separate account (0.2) — 7.9 (2.4) — Interest credited (4) 0.2 0.7 39.8 0.9 0.2 Other (0.7) — 1.1 (1.6) — Balance at June 30, 2023 $ 52.0 $ 63.0 $ 4,563.5 $ 481.2 $ 33.5 Weighted-average crediting rate (0.1) % (5.0) % — % — % (3.0) % Net amount at risk (5) $ — $ — $ (23.3) $ — $ — Cash surrender value $ 32.9 $ 62.8 $ 4,540.9 $ 486.7 $ 33.7 ($ in millions) Three Months Ended June 30, 2022 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at April 1, 2022 $ 41.0 $ 65.9 $ 4,548.2 $ 518.2 $ 37.0 Premiums received (1) $ 2.5 $ — $ 47.5 $ 8.1 $ 0.6 Surrenders and withdrawals (2) (0.4) (0.8) (59.5) (9.4) (0.1) Benefit payments (3) — (0.4) (14.4) (0.7) (1.5) Net transfers from (to) separate account — — 15.8 (0.3) — Interest credited (4) 0.3 0.7 38.3 1.3 0.3 Other (0.8) — (2.2) 1.0 — Balance at June 30, 2022 $ 42.6 $ 65.4 $ 4,573.7 $ 518.2 $ 36.3 Weighted-average crediting rate (1.4) % — % — % (0.2) % — % Net amount at risk (5) $ — $ — $ 12.1 $ — $ — Cash surrender value $ 1.4 $ (0.5) $ 26.3 $ (1.2) $ (0.7) (1) Premiums received represents premiums collected from policyholder during the period of in force business. (2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (4) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. ($ in millions) Six Months Ended June 30, 2023 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2023 $ 47.6 $ 64.3 $ 4,591.1 $ 510.3 $ 34.4 Premiums received (1) $ 6.7 $ (0.4) $ 113.9 $ 10.5 $ 2.1 Surrenders and withdrawals (2) (0.7) (1.5) (202.0) (32.5) (0.2) Benefit payments (3) — (0.9) (36.9) (1.5) (3.1) Net transfers from (to) separate account (0.2) — 14.5 (3.3) — Interest credited (4) 0.2 1.5 79.9 0.9 0.5 Other (1.6) — 3.0 (3.2) (0.2) Balance at June 30, 2023 $ 52.0 $ 63.0 $ 4,563.5 $ 481.2 $ 33.5 Weighted-average crediting rate — % — % 3.6 % — % — % Net amount at risk (5) $ — $ — $ 16.2 $ — $ — Cash surrender value $ — $ — $ 109.9 $ — $ — ($ in millions) Six Months Ended June 30, 2022 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2022 $ 39.1 $ 66.2 $ 4,532.7 $ 522.6 $ 37.7 Premiums received (1) $ 4.7 $ — $ 94.7 $ 17.4 $ 1.4 Surrenders and withdrawals (2) (0.6) (1.5) (119.8) (20.3) (0.4) Benefit payments (3) — (0.8) (32.9) (1.8) (3.0) Net transfers from (to) separate account — — 26.8 (0.4) — Interest credited (4) 0.8 1.5 77.2 3.1 0.6 Other (1.4) — (5.0) (2.4) — Balance at June 30, 2022 $ 42.6 $ 65.4 $ 4,573.7 $ 518.2 $ 36.3 Weighted-average crediting rate 4.1 % 5.0 % 3.5 % 1.2 % 3.0 % Net amount at risk (5) $ — $ — $ 78.5 $ — $ — Cash surrender value $ 27.4 $ 64.7 $ 4,515.7 $ 503.0 $ 35.9 (1) Premiums received represents premiums collected from policyholder during the period of in force business. (2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (4) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets: ($ in millions) June 30, 2023 December 31, 2022 Indexed universal life $ 52.0 $ 47.6 Experience Life 63.0 64.3 Fixed account annuities 4,563.5 4,591.1 Fixed indexed account annuities 481.2 510.3 SPIA (non-life contingent) 33.5 34.4 Reconciling items (1) 13.0 12.9 Total $ 5,206.2 $ 5,260.6 (1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs. The following tables present the gross 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: ($ in millions) June 30, 2023 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 81.5 $ 327.4 $ 372.3 $ 170.8 $ 952.0 Equal to 2% but less than 3% 214.5 46.7 9.4 0.8 271.4 Equal to 3% but less than 4% 626.5 12.2 0.7 — 639.4 Equal to 4% but less than 5% 2,693.4 — — — 2,693.4 5% or higher 90.3 — — — 90.3 Total $ 3,706.2 $ 386.3 $ 382.4 $ 171.6 $ 4,646.5 ($ in millions) December 31, 2022 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 262.5 $ 370.6 $ 214.4 $ 96.1 $ 943.6 Equal to 2% but less than 3% 256.1 19.8 4.7 — 280.6 Equal to 3% but less than 4% 667.4 0.4 0.4 — 668.2 Equal to 4% but less than 5% 2,706.1 — — — 2,706.1 5% or higher 91.7 — — — 91.7 Total $ 3,983.8 $ 390.8 $ 219.5 $ 96.1 $ 4,690.2 (1) Excludes products not containing a fixed guaranteed minimum crediting rate. Separate Account Liabilities Separate account assets and liabilities consist of investment accounts established and maintained by the Company for certain variable contracts. Some of these variable contracts include minimum guarantees such as GMDBs that guarantee a minimum payment to the policyholder in the event of death. The assets that support variable contracts are measured at fair value and are reported as separate account assets on the Consolidated Balance Sheets. An equivalent amount is reported as separate account liabilities. MRB assets and liabilities for minimum guarantees are valued and presented separately from separate account assets and separate account liabilities. MRBs are discussed further in the market risk benefits section of this Note to the Consolidated Financial Statements. Policy charges assessed against the policyholders for mortality, administration and other services are included in the life premiums and contract charges line item on the Consolidated Statements of Operations and Comprehensive Income (Loss). The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets (1) : ($ in millions) Retirement Services Variable Account Annuities June 30, 2023 December 31, 2022 Balance, beginning of year $ 2,792.3 $ 3,441.0 Deposits 114.1 240.3 Withdrawals (105.0) (186.8) Net transfers (11.2) (38.1) Fees and charges (18.4) (36.8) Market appreciation (depreciation) 330.2 (619.7) Other (3.5) (7.6) Balance, end of period $ 3,098.5 $ 2,792.3 (1) The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Market Risk Benefits The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the three and six months ended June 30, 2023 and 2022, respectively: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance, beginning of period $ 1.3 $ 4.0 $ 0.2 $ 4.8 Balance, beginning of period, before effects of changes in the instrument-specific credit risk 0.9 1.6 — 2.0 Changes in market risk benefits (1) (4.1) 2.6 (3.2) 2.2 Balance, end of period (2) $ (3.2) $ 4.2 $ (3.2) $ 4.2 Effect of changes in the instrument-specific credit risk (0.4) 0.4 (0.4) 0.4 Balance, end of period $ (3.6) $ 4.6 $ (3.6) $ 4.6 Net amount at risk (3) $ 28.1 $ 48.9 $ 28.1 $ 48.9 Weighted-average attained age of contract holders 63 62 63 62 (1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets. ($ in millions) As of June 30, 2023 As of December 31, 2022 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (6.2) $ 2.6 $ (3.6) $ (4.4) $ 4.7 $ 0.3 DAC and Deferred Sales Inducements The following tables roll-forward DAC for the periods indicated: ($ in millions) Three Months Ended June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 21.2 $ 30.7 $ 5.8 $ 6.8 $ 15.7 $ 6.7 $ 219.7 Capitalizations 0.7 1.5 0.1 0.3 0.7 0.7 3.7 Amortization expense (0.3) (0.8) (0.2) (0.1) (0.3) (0.2) (3.7) Experience adjustment — — — — — (0.2) (2.5) Balance, end of period $ 21.6 $ 31.4 $ 5.7 $ 7.0 $ 16.1 $ 7.0 $ 217.2 ($ in millions) Six Months Ended June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 Capitalizations 1.3 2.8 0.1 0.5 1.2 1.3 7.7 Amortization expense (0.6) (1.4) (0.2) (0.2) (0.5) (0.3) (7.4) Experience adjustment — — — — — (0.2) (4.2) Balance, end of period $ 21.6 $ 31.4 $ 5.7 $ 7.0 $ 16.1 $ 7.0 $ 217.2 ($ in millions) Year Ended December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of year $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 Capitalizations 3.0 5.0 0.2 1.4 2.5 1.8 15.5 Amortization expense (1.2) (2.5) (0.4) (0.3) (0.8) (0.5) (15.8) Experience adjustment — — — — — — (1.9) Balance, end of year $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 ($ in millions) Year Ended December 31, 2021 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 Capitalizations 2.4 4.2 0.2 1.5 1.7 1.1 17.3 Amortization expense (1.1) (2.3) (0.4) (0.3) (0.8) (0.5) (16.0) Experience adjustment — — — — (0.1) — (1.1) Balance, end of year December 31, 2021 $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: ($ in millions) June 30, 2023 December 31, 2022 Whole life $ 21.6 $ 20.9 Term life 31.4 30.0 Experience life 5.7 5.8 Limited pay whole life 7.0 6.7 Indexed universal life 16.1 15.4 Supplemental health 7.0 6.2 Total annuities 217.2 221.1 Reconciling item (1) 26.9 24.5 Total $ 332.9 $ 330.6 (1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. The assumptions used to amortize DAC were consistent with the assumptions used to estimate LFPB for traditional and limited-payment contracts. The underlying assumptions for DAC and LFPB were updated at the same time. In the second quarter of 2023 and 2022, the Company conducted a review of all significant assumptions and did not make any changes to future assumptions because actual experience for mortality and lapses was materially consistent with underlying assumptions. The following table rolls-forward the DSI balance as of and for the three and six months ended June 30, 2023: ($ in millions) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Balance, beginning of period $ 15.4 $ 15.9 Capitalizations — — Amortization expense (0.3) (0.6) Experience adjustment (0.2) (0.4) Balance, end of period $ 14.9 $ 14.9 |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance The Company recognizes the cost of reinsurance premiums over the contract periods for such premiums in proportion to the insurance protection provided. Amounts recoverable from reinsurers for unpaid claims and claim settlement expenses, including estimated amounts for unsettled claims, claims incurred but not yet reported and policy benefits, are estimated in a manner consistent with the insurance liability associated with the policy. The effects of reinsurance on net premiums written and contract deposits; net premiums and contract charges earned; and benefits, claims and settlement expenses were as follows: ($ in millions) Direct Ceded to Other Companies (1) Assumed Net Three months ended June 30, 2023 Net premiums written and contract deposits (2) $ 394.7 $ 17.9 $ 9.4 $ 386.2 Net premiums and contract charges earned 271.6 20.0 9.1 260.7 Benefits, claims and settlement expenses 217.5 14.3 2.0 205.2 Three months ended June 30, 2022 Net premiums written and contract deposits (2) $ 375.1 $ 16.5 $ 13.7 $ 372.3 Net premiums and contract charges earned 260.5 18.7 13.6 255.4 Benefits, claims and settlement expenses 212.4 18.5 9.5 203.4 Six months ended June 30, 2023 Net premiums written and contract deposits (2) $ 762.5 $ 34.5 $ 19.8 $ 747.8 Net premiums and contract charges earned 535.6 38.5 19.5 516.6 Benefits, claims and settlement expenses 410.4 27.0 5.0 388.4 Six months ended June 30, 2022 Net premiums written and contract deposits (2) $ 735.9 $ 31.3 $ 26.1 $ 730.7 Net premiums and contract charges earned 520.9 35.9 26.2 511.2 Benefits, claims and settlement expenses 394.0 25.7 10.3 378.6 (1) Excludes the annuity reinsurance transaction accounted for using the deposit method. (2) This measure is not based on accounting principles generally accepted in the United States of America (non-GAAP). An explanation of this non-GAAP measure is contained in the Glossary of Selected Terms included as Exhibit 99.1 in the Company's reports filed with the SEC. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company conducts and manages its business in four reporting segments. The three operating segments, representing the major lines of business, are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). The Company does not allocate the impact of corporate-level transactions to these operating segments, consistent with the basis for management's evaluation of the results of those segments, but classifies those items in the fourth reporting segment, Corporate & Other. In addition to ongoing transactions such as corporate debt service, net investment gains (losses) and certain public company expenses, such items in Corporate & Other have also included corporate debt retirement costs, when applicable. Summarized financial information for these segments is as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Net premiums and contract charges earned Property & Casualty $ 157.4 $ 149.9 $ 309.8 $ 300.1 Life & Retirement 37.4 36.3 75.1 72.1 Supplemental & Group Benefits 65.9 69.2 131.7 139.0 Total $ 260.7 $ 255.4 $ 516.6 $ 511.2 Net investment income Property & Casualty $ 10.6 $ 7.7 $ 14.6 $ 14.9 Life & Retirement 89.3 88.4 177.2 172.6 Supplemental & Group Benefits 9.1 9.6 18.2 16.7 Corporate & Other — — — — Intersegment eliminations (0.5) (0.5) (1.1) (1.1) Total $ 108.5 $ 105.2 $ 208.9 $ 203.1 Net income (loss) Property & Casualty $ (21.4) $ (25.4) $ (33.0) $ (16.9) Life & Retirement 17.4 23.8 31.4 39.4 Supplemental & Group Benefits 11.8 15.0 25.8 28.2 Corporate & Other (20.6) (17.6) (30.4) (34.6) Total $ (12.8) $ (4.2) $ (6.2) $ 16.1 ($ in millions) June 30, 2023 December 31, 2022 Assets Property & Casualty $ 1,077.9 $ 1,083.8 Life & Retirement 11,127.1 10,754.5 Supplemental & Group Benefits 1,350.4 1,359.3 Corporate & Other 168.2 173.4 Intersegment eliminations (51.7) (64.9) Total $ 13,671.9 $ 13,306.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) AOCI represents the accumulated change in shareholders’ equity from transactions and other events and circumstances from non-shareholder sources. For the Company, AOCI includes the after tax change in net unrealized investment gains (losses) on fixed maturity securities, the after tax change in net reserve remeasurements attributable to discount rates and the after tax change in net funded status of benefit plans for the periods as shown in the Consolidated Statements of Changes in Shareholders’ Equity. The following table reconciles these components. ($ in millions) Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities (1) Net Reserve Remeasurements Attributable to Discount Rates (1) Net Funded Status of Benefit Plans (1) Total (1) Beginning balance, April 1, 2023 $ (356.4) $ 17.8 $ (8.8) $ (347.4) Other comprehensive income (loss) before reclassifications (48.9) 25.1 — (23.8) Amounts reclassified from AOCI (2) 11.6 — — 11.6 Net current period other comprehensive income (loss) (37.3) 25.1 — (12.2) Ending balance, June 30, 2023 $ (393.7) $ 42.9 $ (8.8) $ (359.6) Beginning balance, April 1, 2022 $ 13.0 $ (205.4) $ (10.2) $ (202.6) Other comprehensive income 9losss) before reclassifications (297.1) 168.5 — (128.6) Amounts reclassified from AOCI (3) 2.3 — — 2.3 Net current period other comprehensive income (loss) (294.8) 168.5 — (126.3) Ending balance, June 30, 2022 $ (281.8) $ (36.9) $ (10.2) $ (328.9) Beginning balance, January 1, 2023 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Other comprehensive income (loss) before reclassifications 42.4 (16.1) — 26.3 Amounts reclassified from AOCI (2) 13.5 — — 13.5 Net current period other comprehensive income (loss) 55.9 (16.1) — 39.8 Ending balance, June 30, 2023 $ (393.7) $ 42.9 $ (8.8) $ (359.6) Beginning balance, January 1, 2022 $ 347.1 $ (386.9) $ (10.2) $ (50.0) Other comprehensive income (loss) before reclassifications (633.0) 350.0 — (283.0) Amounts reclassified from AOCI (2) 4.1 — — 4.1 Net current period other comprehensive income (loss) (628.9) 350.0 — (278.9) Ending balance, June 30, 2022 $ (281.8) $ (36.9) $ (10.2) $ (328.9) (1) All amounts are net of tax. (2) The pretax amounts reclassified from AOCI, $(14.6) million and $(17.0) million, are included in Net investment gains (losses) and the related income tax benefits, $(3.1) million and $(3.6) million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2023, respectively. (3) The pretax amounts reclassified from AOCI, $(2.9) million and $(5.2) million, are included in Net investment gains (losses) and the related income tax benefits, $(0.6) million and $(1.1) million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2022, respectively. Comparative information for elements that are not required to be reclassified in their entirety to net income in the same reporting period is disclosed in Note 2. |
Supplemental Consolidated Cash
Supplemental Consolidated Cash and Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Consolidated Cash and Cash Flow Information | Supplemental Consolidated Cash and Cash Flow Information ($ in millions) June 30, 2023 December 31, 2022 Cash $ 22.2 $ 42.2 Restricted cash 0.9 0.6 Total cash and restricted cash reported in the Consolidated Balance Sheets $ 23.1 $ 42.8 ($ in millions) Six Months Ended 2023 2022 Cash paid for: Interest $ 13.1 $ 7.1 Income taxes 10.0 5.3 Non-cash investing activities with respect to modifications or exchanges of fixed maturity securities as well as paid-in-kind activity for policy loans were insignificant for the three and six months ended June 30, 2023 and 2022, respectively. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Lawsuits and Legal Proceedings Companies in the insurance industry have been subject to substantial litigation resulting from claims, disputes and other matters. For instance, they have faced expensive claims, including class action lawsuits, alleging, among other things, improper sales practices and improper claims settlement procedures. Negotiated settlements of certain such actions have had a material adverse effect on many insurance companies. At the time of issuance of this Quarterly Report on Form 10-Q, the Company does not have pending litigation from which there is a reasonable possibility of material loss. Assessments for Insolvencies of Unaffiliated Insurance Companies The Company is contingently liable for possible assessments under regulatory requirements pertaining to potential insolvencies of unaffiliated insurance companies. Liabilities, which are established based upon regulatory guidance, have generally been insignificant. Investment Commitments The Company has outstanding commitments to fund investments primarily in limited partnership interests. Such unfunded commitments were $554.1 million and $704.2 million as of June 30, 2023 and December 31, 2022, respectively. |
Prior Period Consolidated Finan
Prior Period Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prior Period Consolidated Financial Statements | Prior Period Consolidated Financial Statements Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (also known as LDTI). The Company adopted LDTI using the modified retrospective approach where permitted with changes applied as of January 1, 2021. As a result of adoption, the Company’s prior period consolidated financial statements have been restated. The following tables summarize the effects of adopting LDTI on our unaudited Consolidated Financial Statements. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED BALANCE SHEET (UNAUDITED) ($ in millions, except share data) December 31, 2022 Effect of the Adoption of ASU 2018-12 Reclassifications (1) December 31, 2022 As Reported As Adjusted Assets Total investments $ 6,587.6 $ — $ — $ 6,587.6 Cash 42.8 — $ — 42.8 Deferred policy acquisition costs 433.1 (102.5) $ — 330.6 Reinsurance balances receivable 506.2 (38.2) — 468.0 Deposit asset on reinsurance 2,516.6 — — 2,516.6 Intangible assets 185.2 — — 185.2 Goodwill 54.3 — — 54.3 Other assets 328.7 — — 328.7 Separate Account variable annuity assets 2,792.3 — — 2,792.3 Total assets $ 13,446.8 $ (140.7) $ — $ 13,306.1 Liabilities and Shareholders' Equity Policy liabilities Investment contract and policy reserves $ 6,968.0 $ (151.9) $ (6,816.1) $ — Future policy benefit reserves 1,718.0 1,718.0 Policyholders' account balances 5,260.6 5,260.6 Unpaid claims and claim expenses 585.1 (2.9) (18.2) 564.0 Unearned premiums 264.2 1.9 — 266.1 Total policy liabilities 7,817.3 (152.9) 144.3 7,808.7 Other policyholder funds 954.0 (0.4) (144.3) 809.3 Other liabilities 297.0 2.5 — 299.5 Short-term debt 249.0 — — 249.0 Long-term debt 249.0 — — 249.0 Separate Account variable annuity liabilities 2,792.3 — — 2,792.3 Total liabilities 12,358.6 (150.8) — 12,207.8 Preferred stock — — — — Common stock 0.1 — — 0.1 Additional paid-in capital 502.6 — — 502.6 Retained earnings 1,468.6 43.8 — 1,512.4 Accumulated other comprehensive income (loss), net of tax: Net unrealized investment losses on fixed maturity securities (356.9) (92.7) — (449.6) Net reserve remeasurements attributable to discount rates — 59.0 — 59.0 Net funded status of benefit plans (8.8) — — (8.8) Treasury stock, at cost (517.4) — — (517.4) Total shareholders’ equity 1,088.2 10.1 — 1,098.3 Total liabilities and shareholders’ equity $ 13,446.8 $ (140.7) $ — $ 13,306.1 (1) The Company has reclassified the presentation of certain information to conform to the current year's presentation. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) ($ in millions, except per share data) Three Months Ended Effect of the Adoption of ASU 2018-12 Three Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 255.8 $ (0.4) $ 255.4 Net investment income 105.2 — 105.2 Net investment losses (15.5) — (15.5) Other income 0.8 — 0.8 Total revenues 346.3 (0.4) 345.9 Benefits, losses and expenses Benefits, claims and settlement expenses 207.6 (4.2) 203.4 Interest credited 42.4 (1.0) 41.4 Operating expenses 77.3 (0.2) 77.1 DAC amortization expense 27.0 (5.5) 21.5 Intangible asset amortization expense 4.2 — 4.2 Interest expense 4.3 — 4.3 Total benefits, losses and expenses 362.8 (10.9) 351.9 Income before income taxes (16.5) 10.5 (6.0) Income tax expense (benefit) (4.0) 2.2 (1.8) Net income (loss) (12.5) 8.3 (4.2) Net income (loss) per share Basic (0.30) 0.20 (0.10) Diluted (0.30) 0.20 (0.10) Weighted average number of shares and equivalent shares Basic 41.8 — 41.8 Diluted 41.8 — 41.8 Statement of Comprehensive Income (Loss) Net income (loss) (12.5) 8.3 (4.2) Other comprehensive income (loss), net of tax: Change in net unrealized investment losses on fixed maturity securities (240.4) (54.4) (294.8) Change in net reserve remeasurements attributable to discount rates — 168.5 168.5 Change in net funded status of benefit plans — — — Other comprehensive loss (240.4) 114.1 (126.3) Comprehensive income (loss) $ (252.9) $ 122.4 $ (130.5) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) ($ in millions, except per share data) Six Months Ended Effect of the Adoption of ASU 2018-12 Six Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 511.7 $ (0.5) $ 511.2 Net investment income 203.1 — 203.1 Net investment losses (31.0) — (31.0) Other income 9.3 — 9.3 Total revenues 693.1 (0.5) 692.6 Benefits, losses and expenses Benefits, claims and settlement expenses 384.6 (6.0) 378.6 Interest credited 83.2 (2.1) 81.1 Operating expenses 154.1 (0.3) 153.8 DAC amortization expense 53.4 (9.9) 43.5 Intangible asset amortization expense 8.4 — 8.4 Interest expense 8.2 — 8.2 Total benefits, losses and expenses 691.9 (18.3) 673.6 Income before income taxes 1.2 17.8 19.0 Income tax expense (benefit) (0.8) 3.7 2.9 Net income 2.0 14.1 16.1 Net income per share Basic 0.05 0.33 0.38 Diluted 0.05 0.33 0.38 Weighted average number of shares and equivalent shares Basic 41.8 — 41.8 Diluted 42.0 — 42.0 Statement of Comprehensive Income (Loss) Net income 2.0 14.1 16.1 Other comprehensive income (loss), net of tax: Change in net unrealized investment losses on fixed maturity securities (511.1) (117.8) (628.9) Change in net reserve remeasurements attributable to discount rates — 350.0 350.0 Change in net funded status of benefit plans — — — Other comprehensive loss (511.1) 232.2 (278.9) Comprehensive income (loss) $ (509.1) $ 246.3 $ (262.8) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) ($ in millions, except per share data) Three Months Ended Effect of the Adoption of ASU 2018-12 Three Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 498.1 — 498.1 Retained earnings Beginning balance 1,525.9 27.1 1,553.0 Net income (12.5) 8.3 (4.2) Effect of adopting ASU 2018-12 (1) — — — Dividends,per share; 2022, $0.32 per share (13.5) — (13.5) Ending balance 1,499.9 35.4 1,535.3 Accumulated other comprehensive income (loss), net of tax: Beginning balance 9.8 (212.4) (202.6) Change in net unrealized investment losses on fixed maturity securities (240.4) (54.4) (294.8) Change in net reserve remeasurements attributable to discount rates — 168.5 168.5 Change in net funded status of benefit plans — — — Ending balance (230.6) (98.3) (328.9) Treasury stock, at cost Ending balance (507.4) — (507.4) Shareholders' equity at end of period $ 1,260.1 $ (62.9) $ 1,197.2 (1) See Note 1 to the Consolidated Financial Statements for information regarding ASU 2018-12. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) ($ in millions, except per share data) Six Months Ended Effect of the Adoption of ASU 2018-12 Six Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 498.1 — 498.1 Retained earnings Beginning balance 1,524.9 22.1 1,547.0 Net income 2.0 14.1 16.1 Effect of adopting ASU 2018-12 (1) — (0.8) (0.8) Dividends,per share; 2022, $0.32 per share (27.0) — (27.0) Ending balance 1,499.9 35.4 1,535.3 Accumulated other comprehensive income (loss), net of tax: Beginning balance 280.5 (330.5) (50.0) Change in net unrealized investment losses on fixed maturity securities (511.1) (117.8) (628.9) Change in net reserve remeasurements attributable to discount rates — 350.0 350.0 Change in net funded status of benefit plans — — — Ending balance (230.6) (98.3) (328.9) Treasury stock, at cost Ending balance (507.4) — (507.4) Shareholders' equity at end of period $ 1,260.1 $ (62.9) $ 1,197.2 (1) See Note 1 to the Consolidated Financial Statements for information regarding ASU 2018-12. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) ($ in millions) Six Months Ended Effect of the Adoption of ASU 2018-12 Six Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Cash flows - operating activities Net income $ 2.0 $ 14.1 $ 16.1 Adjustments to reconcile net income to net cash provided by operating activities: Net investment losses 31.0 — 31.0 Depreciation and intangible asset amortization 7.9 — 7.9 Share-based compensation expense 4.4 — 4.4 Loss from EMA investments, net of dividends or distributions (3.8) — (3.8) Changes in: Insurance liabilities 411.8 (136.6) 275.2 Amounts due under reinsurance agreements (344.3) 33.9 (310.4) Income tax liabilities (6.3) 99.3 93.0 Other operating assets and liabilities (25.8) (10.4) (36.2) Other, net 3.1 (0.3) 2.8 Net cash provided by operating activities 80.0 — 80.0 Cash flows - investing activities Net cash used in investing activities (296.1) — (296.1) Cash flows - financing activities Net cash provided by financing activities 132.5 — 132.5 Net decrease in cash (83.6) — (83.6) Cash at beginning of period 133.7 — 133.7 Cash at end of period $ 50.1 $ — $ 50.1 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in annual financial statements prepared in conformity with GAAP, but are not required for interim reporting purposes, have been omitted. These Consolidated Financial Statements and Notes thereto should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Part II - Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. The accompanying Consolidated Financial Statements and Notes thereto are unaudited and reflect all adjustments (generally consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Part II - Item 8, Note 1 of the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Company has reclassified the presentation of certain prior period information to conform to the current year's presentation. |
Consolidation | Consolidation All intercompany transactions and balances between HMEC and its subsidiaries and affiliates have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the reporting date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The most significant critical accounting estimates include valuation of hard-to-value fixed maturity securities, evaluation of credit loss impairments for fixed maturity securities, evaluation of goodwill and intangible assets for impairment, valuation of annuity and life deferred policy acquisition costs, valuation of liabilities for property and casualty unpaid claims and claim expense reserves, valuation of liabilities for group benefits unpaid claims and claim expense reserves, valuation of future policy benefit reserves and policyholders' account balances and valuation of long-duration insurance contracts under the new accounting guidance in ASU 2018-12. |
Adoption of New Accounting Standards / Significant Accounting Policies | Adoption of New Accounting Standards Accounting for Long-Duration Insurance Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date, and (ii) ASU 2020-11, Financial Services - Insurance (Topic 944): Effective Date and Early Application (collectively referred to herein as ASU 2018-12). ASU 2018-12 changed existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts. ASU 2018-12 includes: (1) a requirement to review and, if there is a change, update cash flow assumptions used to measure the liability for future policy benefits (LFPB) at least annually, and to update the discount rate assumption quarterly, (2) a requirement to account for market risk benefits (MRBs) at fair value, (3) simplified amortization for deferred policy acquisition costs (DAC), and (4) enhanced financial statement presentation and disclosures. ASU 2018-12 became effective for the Company for interim and annual periods beginning after December 15, 2022. The Company adopted ASU 2018-12 for LFPB and DAC on a modified retrospective basis such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. The Company adopted ASU 2018-12 for MRBs on a full retrospective basis, using hindsight where necessary. For variable annuities, actuarial assumptions (mortality, lapse, and premium payment patterns) used to measure MRBs were unobservable for years prior to 2006 and thus, hindsight was used to determine relevant assumptions for transition purposes. The factors used in applying hindsight included internal experience studies, the historical economic environment, actual performance of the business, and relevant industry information. For LFPB, the net transition adjustment is related to the difference in the discount rate used pre-transition and the discount rate at January 1, 2021. At transition, the Company had several instances, at the cohort level, where net premiums exceeded gross premiums which were recorded as an adjustment to retained earnings. For DAC, the Company removed shadow adjustments previously recorded in accumulated other comprehensive income (loss) (i.e., AOCI) for the impact of net unrealized investment gains (losses) that were included in the pre-ASU 2018-12 expected gross profits amortization calculation as of the transition date. For MRBs, the transition adjustment to AOCI relates to the cumulative effect of changes in the instrument-specific credit risk between contract issue date and transition date. The remaining difference between the fair value and carrying amount of MRBs at transition, excluding the amounts recorded in AOCI, was recorded as an adjustment to retained earnings as of the transition date. While the requirements of ASU 2018-12 represent a significant change from legacy GAAP, the adoption of ASU 2018-12 did not impact cash flows on the Company’s policies, or the underlying economics of the Company’s business. The Company's insurance subsidiaries' risk-based capital amounts and ratios, and regulatory dividends are not impacted as the National Association of Insurance Commissioners (NAIC) rejected ASU 2018-12. See Note 11 for summarization of the effects of adopting ASU 2018-12 on the Company's 2022 Consolidated Financial Statements. Significant Accounting Policies The following significant accounting policy has been added to reflect the Company's adoption of ASU 2018-12 as described above. Liability for Future Policy Benefits LFPB, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that include discount rate, mortality, lapses, and expenses. These current assumptions are based on judgments that consider the Company's historical experience, industry data, and other factors. For traditional, limited-payment and supplemental health contracts, such contracts are grouped into cohorts by contract type and issue year. The liability is adjusted for differences between actual and expected experience. With the exception of the expense assumption, the Company reviews its historical and future cash flow assumptions at least annually and updates the net premium ratio used to calculate the liability each time the assumptions are changed. The Company has elected to use expense assumptions that are locked-in at contract inception and are not subsequently reviewed or updated. At least annually, the Company updates its estimate 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 LFPB 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 updating cash flow assumptions, to determine the current period change in liability estimate. This current period change in liability estimate is the liability remeasurement gain or loss. The impact of updated cash flow assumptions as well as the periodic liability remeasurement gain or loss is recognized as Benefits, claims and settlement expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). In subsequent periods, the revised net premiums are used to measure LFPB, subject to future revisions. For traditional and limited-payment contracts, a standard discount rate is used to measure the liabilities that is equivalent to the yield from an A-rated bond. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in other comprehensive income. For liability cash flows that are projected beyond the duration of market-observable A- rated bond, the Company uses the last market-observable yield level, and uses linear interpolation to determine yield assumptions for durations that do not have market-observable yields. Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of LFPB, including discount rate, mortality, lapses, and expenses. DPL is amortized and recognized as premium revenue 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 DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimates of cash flows for DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to Net premiums and contract charges earned presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). DPL is recognized as a component of the Investment contract and future policy benefit reserves presented in the Consolidated Balance Sheets. 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. MRBs include guaranteed minimum death benefits on variable annuity products. MRBs are measured at fair value using a non-option-based valuation model based on current net amounts at risk, market data, Company experience, and other factors. Changes in fair value of MRBs are recognized as a component of Benefits, claims and settlement expenses presented in the Consolidated Statements of Operations and Comprehensive Income (Loss) 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. MRBs are recognized as a component of Policyholders' account balances reserves presented in the Consolidated Balance Sheets. Deferred Policy Acquisition Costs and Deferred Sales Inducements DAC are costs that are incremental and directly related to the successful acquisition of new or renewal insurance contracts. Such costs include the incremental direct costs of contract acquisition, such as sales commissions; the portion of employees' total compensation and payroll-related fringe benefits related directly to time spent performing acquisition activities, such as underwriting, issuing, and processing policies for contracts that have actually been acquired; and other costs related directly to acquisition activities that would not have been incurred if the contract had not been acquired. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. For all life insurance products, the constant level basis used is face amount in force. For all deferred annuity products, the constant level basis used is the deposit amount in force. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on the Company's experience, industry data, and other factors and are consistent with those used for LFPB. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected terminations, due to mortality and lapse experience higher than expected, are recognized in the current period as a reduction of the capitalized balances. Amortization of DAC is recognized as DAC amortization expense presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). The DAC balance is reduced for actual experience in excess of expected experience. Changes in future estimates are recognized prospectively over the remaining expected contract term. Deferred sales inducements (DSIs) are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy. DSIs may be deferred if the Company can demonstrate that the deferred sales inducement amounts are both incremental to the amounts Company credits on similar contracts without sales inducements and the amounts are higher than the contract's expected ongoing crediting rates for periods after the inducement. Day-one bonuses and persistency bonuses generally meet the criteria to be deferred. DSIs are amortized using the same methodology and assumptions used to amortize DAC. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liability for Future Policy Benefit, Activity | The following table summarizes the balance of and changes in LFPB on January 1, 2021 due to adoption of ASU 2018-12. The impact of shifts between deferred profit liabilities (DPL) and LFPB for limited-payment products are presented as offsetting line items in the effect of net premiums exceeding gross premiums and the effect of decrease/increase of DPL. ($ in millions) Whole Life Term Life Experience Life Limited Pay Whole Life Supplemental Health (1) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables, end of year December 31, 2020 (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 (1) As of January 1, 2021, the net LFPB for Supplemental Health was $163.5 million for cancer, $31.2 million for accident, $32.0 million for disability and $188.8 million for other supplemental health policies. The balances of and changes in LFPB as of and for the three months ended June 30, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at April 1, 2023 $ 222.2 $ 243.8 $ 69.8 $ 31.2 $ 172.5 $ — April 1, 2023 balance at original discount rate 246.6 266.0 65.0 33.1 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (5.3) — — — — Actual variances from expected experience 1.0 0.5 0.5 0.8 1.7 — Adjusted balance at April 1, 2023 247.6 261.2 65.5 33.9 206.8 — Issuances (3) 2.6 6.5 — 1.1 4.6 1.4 Interest accruals (4) 1.8 2.7 0.8 0.3 1.5 — Net premiums collected (5) (5.0) (5.3) (1.6) (1.1) (5.4) (1.4) June 30, 2023 balance at original discount rate 247.0 265.1 64.7 34.2 207.5 — Effect of changes in discount rate assumptions (29.5) (24.8) 3.4 (2.5) (35.5) — Balance at June 30, 2023 217.5 240.3 68.1 31.7 172.0 — Present value of expected future policy benefits: Balance at April 1, 2023 515.1 365.0 892.5 84.4 437.7 105.9 April 1, 2023 balance at original discount rate 585.4 405.2 801.5 100.3 530.6 113.3 Effect of: Changes in cash flow assumptions — (5.6) — — — — Actual variances from expected experience 1.1 2.2 0.5 0.9 1.8 — Adjusted balance at April 1, 2023 586.5 401.8 802.0 101.2 532.4 113.3 Issuances 2.6 6.6 — 1.1 4.6 1.6 Interest accruals 4.7 3.5 11.9 1.0 3.6 1.1 Benefit payments (6) (5.1) (5.5) (14.3) (0.7) (14.8) (3.0) June 30, 2023 balance at original discount rate 588.7 406.4 799.6 102.6 525.8 113.0 Effect of changes in discount rate assumptions (81.6) (45.8) 71.9 (17.3) (99.2) (9.4) Balance at June 30, 2023 507.1 360.6 871.5 85.3 426.6 103.6 Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 Less: Reinsurance recoverable (63.1) (16.7) (0.7) (0.2) (3.9) (3.5) Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at June 30, 2023 $ 226.3 $ 103.6 $ 802.8 $ 53.5 $ 250.6 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the six months ended June 30, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at January 1, 2023 $ 215.1 $ 234.7 $ 68.3 $ 29.7 $ 167.4 $ — January 1, 2023 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (5.3) — — — — Actual variances from expected experience 1.8 (1.0) 0.7 1.3 0.3 — Adjusted balance at January 1, 2023 247.7 259.1 66.2 33.7 205.4 — Issuances (3) 5.4 13.0 — 2.1 9.9 3.4 Interest accruals (4) 3.6 5.2 1.8 0.6 3.0 — Net premiums collected (5) (9.7) (12.2) (3.3) (2.2) (10.8) (3.4) June 30, 2023 balance at original discount rate 247.0 265.1 64.7 34.2 207.5 — Effect of changes in discount rate assumptions (29.5) (24.8) 3.4 (2.5) (35.5) — Balance at June 30, 2023 217.5 240.3 68.1 31.7 172.0 — Present value of expected future policy benefits: Balance at January 1, 2023 493.6 347.0 867.5 79.4 431.7 103.3 January 1, 2023 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of: Changes in cash flow assumptions — (5.6) — — — — Actual variances from expected experience 1.9 0.7 0.9 1.5 0.1 (0.5) Adjusted balance at January 1, 2023 583.8 396.1 806.1 100.1 537.2 112.9 Issuances 5.5 13.2 — 2.1 9.9 4.0 Interest accruals 9.4 7.5 23.8 1.9 7.2 2.2 Benefit payments (6) (10.0) (10.4) (30.3) (1.5) (28.5) (6.1) June 30, 2023 balance at original discount rate 588.7 406.4 799.6 102.6 525.8 113.0 Effect of changes in discount rate assumptions (81.6) (45.8) 71.9 (17.3) (99.2) (9.4) Balance at June 30, 2023 507.1 360.6 871.5 85.3 426.6 103.6 Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 Less: Reinsurance recoverable (63.1) (16.7) (0.7) (0.2) (3.9) (3.5) Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at June 30, 2023 $ 226.3 $ 103.6 $ 802.8 $ 53.5 $ 250.6 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present Value of Expected Net Premiums Balance at January 1, 2022 (7) $ 260.7 $ 264.4 $ 74.6 $ 29.7 $ 226.7 $ — January 1, 2022 balance at original discount rate (7) 239.3 235.4 55.9 27.2 223.1 — Effect of: Change in cash flow assumptions 5.2 18.7 9.1 2.0 12.2 — Actual variances from expected experience 7.2 (4.2) 3.0 1.6 (25.3) — Adjusted balance at January 1, 2022 251.7 249.9 68.0 30.8 210.0 — Issuances (3) 12.5 28.0 — 6.3 12.0 5.3 Interest accruals (3) 6.7 9.0 3.3 1.1 5.9 — Net premiums collected (5) (25.0) (21.5) (5.8) (5.8) (22.8) (5.3) December 31, 2022 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of changes in discount rate assumptions (30.8) (30.7) 2.8 (2.7) (37.7) — Balance at December 31, 2022 215.1 234.7 68.3 29.7 167.4 — Present Value of Expected Future Policy Benefits Balance at January 1, 2022 (7) 660.4 411.5 1,172.7 102.9 590.6 129.1 January 1, 2022 balance at original discount rate (7) 566.1 360.0 802.6 86.6 584.2 115.7 Effect of: Changes in cash flow assumptions 5.2 21.5 11.0 2.0 13.8 — Actual variances from expected experience 7.7 (4.7) 3.6 1.4 (30.0) 0.4 Adjusted balance at January 1, 2022 579.0 376.8 817.2 90.0 568.0 116.1 Issuances 12.4 28.3 — 6.4 12.0 5.3 Interest accruals 18.0 14.4 47.4 3.4 15.0 4.3 Benefit payments (6) (27.5) (18.5) (59.4) (1.2) (57.9) (12.3) December 31, 2022 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of changes in discount rate assumptions (88.3) (54.0) 62.3 (19.2) (105.4) (10.1) Balance at December 31, 2022 493.6 347.0 867.5 79.4 431.7 103.3 Net liability for future policy benefits 278.4 112.2 799.3 49.6 264.4 103.3 Less: Reinsurance recoverable (63.1) (15.3) (0.8) — (3.4) (3.2) Net liability for future policy benefits, after reinsurance recoverable 215.3 96.9 798.5 49.6 261.0 100.1 Impact of flooring on net liability for future policy benefits 1.1 0.2 — — — — Net liability for future policy benefits at December 31, 2022 $ 216.4 $ 97.1 $ 798.5 $ 49.6 $ 261.0 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. (7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022. The balances of and changes in LFPB (including a summary of the balance and changes in the LFPB on January 1, 2021 due to adoption of ASU 2018-12) as of and for the year ended December 31, 2021 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Change in cash flow assumptions, effect of decrease of the DPL — — — — — — Adjustment for removal of related balances in AOCI — — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 Present Value of Expected Net Premiums Balance at January 1, 2021 $ 176.5 $ 244.1 $ 78.0 $ 25.4 $ 233.0 $ — January 1, 2021 balance at original discount rate 143.5 200.8 55.2 22.0 218.2 — Effect of: Change in cash flow assumptions 2.4 (4.5) (3.3) — (1.8) — Actual variances from expected experience 8.8 6.9 6.3 1.0 6.3 — Adjusted balance at January 1, 2021 154.7 203.2 58.2 23.0 222.7 — Issuances (3) 13.3 29.8 — 10.2 13.0 3.7 Interest accruals (4) 6.2 7.9 3.2 0.8 5.9 — Net premiums collected (5) (16.6) (19.8) (5.6) (6.8) (24.1) (3.7) December 31, 2021 balance at original discount rate 157.6 221.1 55.8 27.2 217.5 — Effect of changes in discount rate assumptions 25.4 32.0 18.8 2.5 4.0 — Balance at December 31, 2021 183.0 253.1 74.6 29.7 221.5 — Present Value of Expected Future Policy Benefits Balance at January 1, 2021 507.1 364.7 1,269.3 95.0 626.9 136.5 January 1, 2021 balance at original discount rate 362.5 294.0 813.5 73.4 589.1 115.9 Effect of: Changes in cash flow assumptions 2.8 (4.8) (3.6) — (3.0) — Actual variances from expected experience 8.7 7.2 6.6 1.1 6.2 (0.4) Adjusted balance at January 1, 2021 374.0 296.4 816.5 74.5 592.3 115.5 Issuances 13.3 29.8 — 10.2 13.0 3.7 Interest accruals 17.1 12.0 47.9 2.9 15.7 4.5 Benefit payments (5) (18.1) (18.7) (61.9) (1.0) (48.4) (12.1) December 31, 2021 balance at original discount rate 386.3 319.5 802.5 86.6 572.6 111.6 Effect of changes in discount rate assumptions 114.4 51.1 370.2 16.3 8.0 13.1 Balance at December 31, 2021 500.7 370.6 1,172.7 102.9 580.6 124.7 Net liability for future policy benefits 317.7 117.6 1,098.1 73.2 359.1 124.7 Less: Reinsurance recoverable (0.5) (5.5) (1.1) (0.2) — — Net liability for future policy benefits, after reinsurance recoverable $ 317.2 $ 112.1 $ 1,097.0 $ 73.0 $ 359.1 $ 124.7 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2021, the net LFPB for Supplemental Health was $140.8 million for cancer, $28.7 million for accident, $29.3 million for disability and $160.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): ($ in millions) Gross premiums or assessments Gross premiums or assessments Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Whole life $ 6.7 $ 6.2 $ 13.3 $ 12.3 Term life 11.4 10.4 22.2 20.3 Experience life 7.9 8.3 16.1 16.8 Limited-pay whole life 1.7 2.5 3.3 4.3 Supplemental health 30.0 30.6 59.7 61.3 SPIA (life contingent) 1.4 0.8 3.6 3.3 Total $ 59.1 $ 58.8 $ 118.2 $ 118.3 ($ in millions) Interest expense Interest expense Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Whole life $ 2.9 $ 2.9 $ 5.8 $ 5.6 Term life 1.2 1.1 2.4 2.2 Experience life 10.9 11.0 21.9 22.1 Limited-pay whole life 0.7 0.6 1.3 1.2 Supplemental health 2.1 2.3 4.3 4.7 SPIA (life contingent) 1.1 1.1 2.2 2.2 Total $ 18.9 $ 19.0 $ 37.9 $ 38.0 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: ($ in millions) As of June 30, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 473.5 $ 325.1 $ 469.0 $ 322.5 Expected future benefits and expenses 1,134.3 588.7 1,121.4 580.4 Term life Expected future gross premiums 751.4 469.0 739.3 464.2 Expected future benefits and expenses 693.9 406.4 678.0 401.0 Experience Life Expected future gross premiums 551.9 306.7 569.6 315.5 Expected future benefits and expenses 1,728.7 799.6 1,755.4 805.2 Limited-pay whole life Expected future gross premiums 63.1 48.1 60.8 46.5 Expected future benefits and expenses 234.6 102.6 226.8 98.6 Supplemental health Expected future gross premiums 1,645.7 1,213.6 1,640.5 1,214.9 Expected future benefits and expenses 720.7 525.8 730.4 537.0 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 158.1 113.0 157.7 113.4 The following table provides the weighted-average durations of LFPB, in years: As of June 30, 2023 2022 Whole life 18.0 18.0 Term life 16.4 15.9 Experience life 10.5 10.8 Limited-pay whole life 22.2 21.5 Supplemental health 10.3 9.8 SPIA (life contingent) 7.7 7.7 The following table provides ranges of the weighted-average interest rates for LFPB: As of June 30, 2023 2022 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 5.0% Current discount rate 4.7% - 5.2% 4.1% - 4.6% Term life Interest accretion rate 4.1% - 4.3% 4.1% - 4.4% Current discount rate 5.2% - 5.2% 4.6% - 4.6% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.2 % 4.7 % Limited-pay whole life Interest accretion rate 3.9 % 3.9 % Current discount rate 5.2 % 4.7 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.2% - 5.3% 4.5% - 5.0% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.0% Current discount rate 5.2% - 5.2% 4.5% - 4.5% |
Deferred Policy Acquisition Costs | The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 DAC and Deferred Sales Inducements The following tables roll-forward DAC for the periods indicated: ($ in millions) Three Months Ended June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 21.2 $ 30.7 $ 5.8 $ 6.8 $ 15.7 $ 6.7 $ 219.7 Capitalizations 0.7 1.5 0.1 0.3 0.7 0.7 3.7 Amortization expense (0.3) (0.8) (0.2) (0.1) (0.3) (0.2) (3.7) Experience adjustment — — — — — (0.2) (2.5) Balance, end of period $ 21.6 $ 31.4 $ 5.7 $ 7.0 $ 16.1 $ 7.0 $ 217.2 ($ in millions) Six Months Ended June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 Capitalizations 1.3 2.8 0.1 0.5 1.2 1.3 7.7 Amortization expense (0.6) (1.4) (0.2) (0.2) (0.5) (0.3) (7.4) Experience adjustment — — — — — (0.2) (4.2) Balance, end of period $ 21.6 $ 31.4 $ 5.7 $ 7.0 $ 16.1 $ 7.0 $ 217.2 ($ in millions) Year Ended December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of year $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 Capitalizations 3.0 5.0 0.2 1.4 2.5 1.8 15.5 Amortization expense (1.2) (2.5) (0.4) (0.3) (0.8) (0.5) (15.8) Experience adjustment — — — — — — (1.9) Balance, end of year $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 ($ in millions) Year Ended December 31, 2021 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 Capitalizations 2.4 4.2 0.2 1.5 1.7 1.1 17.3 Amortization expense (1.1) (2.3) (0.4) (0.3) (0.8) (0.5) (16.0) Experience adjustment — — — — (0.1) — (1.1) Balance, end of year December 31, 2021 $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: ($ in millions) June 30, 2023 December 31, 2022 Whole life $ 21.6 $ 20.9 Term life 31.4 30.0 Experience life 5.7 5.8 Limited pay whole life 7.0 6.7 Indexed universal life 16.1 15.4 Supplemental health 7.0 6.2 Total annuities 217.2 221.1 Reconciling item (1) 26.9 24.5 Total $ 332.9 $ 330.6 (1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. |
Market Risk Benefit, Activity | The following table summarizes the balance of and changes in the net liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Balance, end of year December 31, 2020 $ 0.1 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 6.8 Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance 1.7 Total adjustment for the difference between carrying amount and fair value 8.5 Balance, beginning of year January 1, 2021 8.6 Less: Reinsurance recoverable — Balance, beginning of year January 1, 2021, net of reinsurance $ 8.6 The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the three and six months ended June 30, 2023 and 2022, respectively: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance, beginning of period $ 1.3 $ 4.0 $ 0.2 $ 4.8 Balance, beginning of period, before effects of changes in the instrument-specific credit risk 0.9 1.6 — 2.0 Changes in market risk benefits (1) (4.1) 2.6 (3.2) 2.2 Balance, end of period (2) $ (3.2) $ 4.2 $ (3.2) $ 4.2 Effect of changes in the instrument-specific credit risk (0.4) 0.4 (0.4) 0.4 Balance, end of period $ (3.6) $ 4.6 $ (3.6) $ 4.6 Net amount at risk (3) $ 28.1 $ 48.9 $ 28.1 $ 48.9 Weighted-average attained age of contract holders 63 62 63 62 (1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets. ($ in millions) As of June 30, 2023 As of December 31, 2022 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (6.2) $ 2.6 $ (3.6) $ (4.4) $ 4.7 $ 0.3 |
Schedule of Changes in Accounting Policies | The following table presents the effect of the after-tax transition adjustments on consolidated shareholders' equity due to adoption of ASU 2018: ($ in millions) January 1, 2021 AOCI Retained Earnings Liability for future policy benefits $ (496.3) $ (0.2) Deferred policy acquisition costs 71.1 — Deferred sales inducements — — Market risk benefits (1.3) (5.4) Total $ (426.5) $ (5.6) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of net investment | The components of net investment income for the following periods were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Fixed maturity securities $ 65.2 $ 62.0 $ 132.9 $ 120.6 Equity securities 0.7 4.0 3.4 5.3 Limited partnership interests 15.7 13.2 20.1 26.2 Short-term and other investments 3.5 2.7 7.0 5.4 Investment expenses (2.6) (2.5) (6.2) (5.1) Net investment income - investment portfolio 82.5 79.4 157.2 152.4 Investment income - deposit asset on reinsurance 26.0 25.8 51.7 50.7 Total net investment income $ 108.5 $ 105.2 $ 208.9 $ 203.1 |
Schedule of net investment gains (losses) | Net investment gains (losses) for the following periods were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Fixed maturity securities $ (14.7) $ (2.9) $ (17.1) $ (5.2) Equity securities (3.5) (12.6) (4.5) (28.1) Short-term investments and other 0.8 — 0.3 2.3 Net investment losses $ (17.4) $ (15.5) $ (21.3) $ (31.0) The breakdown of net investment gains (losses) by transaction type for the following periods were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Credit loss impairments $ (0.5) $ (1.3) $ (0.5) $ (2.2) Intent-to-sell impairments (6.1) (0.5) (6.1) (1.4) Total impairments (6.6) (1.8) (6.6) (3.6) Sales and other, net (19.3) (1.1) (21.7) — Change in fair value - equity securities 7.7 (12.6) 6.7 (29.7) Change in fair value and gains (losses) realized on settlements - derivatives 0.8 — 0.3 2.3 Net investment losses $ (17.4) $ (15.5) $ (21.3) $ (31.0) |
Schedule of allowance for credit loss impairments on fixed maturity securities | The following table presents changes in the allowance for credit loss impairments on fixed maturity securities classified as available for sale for the category of other asset-backed securities (no other categories of fixed maturity securities have an allowance for credit loss impairments): ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Beginning balance $ 1.2 $ 8.3 $ 1.2 $ 7.7 Credit losses on fixed maturity securities for which credit losses were not previously reported 0.5 — 0.5 — Net increase related to credit losses previously reported — 1.3 — 2.2 Reduction of credit allowances related to sales — — — — Write-offs (0.5) (0.1) (0.5) (0.4) Ending balance $ 1.2 $ 9.5 $ 1.2 $ 9.5 |
Schedule of available-for-sale securities reconciliation | Amortized cost, net, gross unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows: ($ in millions) Amortized Gross Unrealized Gross Unrealized Fair June 30, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: (1) Mortgage-backed securities $ 650.4 $ 0.8 $ 68.1 $ 583.1 Other, including U.S. Treasury securities 432.4 0.3 63.6 369.1 Municipal bonds 1,342.3 20.2 110.0 1,252.5 Foreign government bonds 26.1 — 1.3 24.8 Corporate bonds 2,053.8 12.6 238.0 1,828.4 Other asset-backed securities 1,207.7 2.7 56.4 1,154.0 Totals $ 5,712.7 $ 36.6 $ 537.4 $ 5,211.9 December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: (1) Mortgage-backed securities $ 638.2 $ 1.3 $ 69.1 $ 570.4 Other, including U.S. Treasury securities 410.0 0.5 67.8 342.7 Municipal bonds 1,380.9 16.9 128.1 1,269.7 Foreign government bonds 35.1 — 1.6 33.5 Corporate bonds 2,161.2 12.7 272.2 1,901.7 Other asset-backed securities 1,131.5 3.6 68.1 1,067.0 Totals $ 5,756.9 $ 35.0 $ 606.9 $ 5,185.0 (1) Fair value includes securities issued by Federal National Mortgage Association (FNMA) of $330.3 million and $330.8 million; Federal Home Loan Mortgage Corporation (FHLMC) of $293.2 million and $273.3 million; and Government National Mortgage Association (GNMA) of $82.4 million and $86.2 million as of June 30, 2023 and December 31, 2022, respectively. |
Summary of fair value and gross unrealized losses of fixed maturity securities and equity securities in an unrealized loss position | Therefore, it was determined that the unrealized losses on the fixed maturity securities presented in the table below were not indicative of any credit loss impairments as of June 30, 2023. ($ in millions) 12 Months or Less More than 12 Months Total Fair Value Gross Fair Value Gross Fair Value Gross June 30, 2023 Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 211.9 $ 12.1 $ 327.6 $ 56.0 $ 539.5 $ 68.1 Other 147.6 6.6 203.8 57.0 351.4 63.6 Municipal bonds 302.8 8.9 634.9 101.1 937.7 110.0 Foreign government bonds 21.8 0.7 2.9 0.6 24.7 1.3 Corporate bonds 186.5 11.0 1,119.2 227.0 1,305.7 238.0 Other asset-backed securities 214.8 5.3 804.0 51.1 1,018.8 56.4 Total $ 1,085.4 $ 44.6 $ 3,092.4 $ 492.8 $ 4,177.8 $ 537.4 Number of positions with a gross unrealized loss 742 2,227 2,969 Fair value as a percentage of total fixed maturity securities at fair value 20.8 % 59.3 % 80.1 % December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 458.3 $ 54.4 $ 52.6 $ 14.7 $ 510.9 $ 69.1 Other 242.7 34.1 65.8 33.7 308.5 67.8 Municipal bonds 911.6 113.7 42.2 14.4 953.8 128.1 Foreign government bonds 32.7 1.4 0.4 0.2 33.1 1.6 Corporate bonds 1,345.0 221.1 148.9 51.1 1,493.9 272.2 Other asset-backed securities 543.4 37.1 424.3 31.0 967.7 68.1 Total $ 3,533.7 $ 461.8 $ 734.2 $ 145.1 $ 4,267.9 $ 606.9 Number of positions with a gross unrealized loss 2,515 587 3,102 Fair value as a percentage of total fixed maturity securities at fair value 68.2 % 14.2 % 82.4 % |
Distribution of the company's fixed maturity portfolio by estimated expected maturity | With regards to fixed maturity securities that had gross unrealized losses more than 12 months, the number of positions by their respective credit ratings were as follows: Number of Positions June 30, 2023 December 31, 2022 Credit Rating AAA 229 67 AA 835 217 A 399 94 BBB 436 93 BB 183 68 B 85 31 CCC or lower 5 2 Not rated 55 15 Totals: 2,227 587 The following table presents the distribution of the Company’s fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. ($ in millions) Percent of Total Fair Value June 30, 2023 June 30, 2023 December 31, 2022 Fair Amortized Estimated expected maturity: Due in 1 year or less 4.9 % 4.4 % $ 253.5 $ 261.6 Due after 1 year through 5 years 26.7 26.3 1,390.7 1,448.0 Due after 5 years through 10 years 27.5 27.9 1,431.8 1,520.5 Due after 10 years through 20 years 24.6 25.0 1,286.9 1,444.5 Due after 20 years 16.3 16.4 849.0 1,038.1 Total 100.0 % 100.0 % $ 5,211.9 $ 5,712.7 Average option-adjusted duration, in years 6.2 6.4 |
Proceeds received from sales of fixed maturities and equity securities | Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Fixed maturity securities Proceeds received $ 143.5 $ 197.0 $ 206.2 $ 365.3 Gross gains realized 0.3 1.2 0.6 3.6 Gross losses realized (8.4) (2.3) (11.1) (5.2) Equity securities Proceeds received $ 9.8 $ — $ 9.8 $ 5.8 Gross gains realized — — — 1.7 Gross losses realized (11.3) — (11.3) (0.1) |
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities | The following table reconciles net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Net unrealized investment gains (losses) Beginning of period $ (356.4) $ 13.0 $ (449.6) $ 347.1 Change in net unrealized investment gains (48.9) (297.1) 42.4 (633.0) Reclassification of net investment losses 11.6 2.3 13.5 4.1 End of period $ (393.7) $ (281.8) $ (393.7) $ (281.8) |
Schedule of carrying amounts of equity method limited partnership interests | The carrying amounts of EMA limited partnership interests were as follows: ($ in millions) June 30, 2023 December 31, 2022 Commercial mortgage loan funds $ 642.7 $ 593.6 Private equity funds 80.6 76.3 Infrastructure equity funds 72.4 72.0 Real estate equity funds 86.8 71.3 Infrastructure debt funds 62.8 60.0 Other funds (1) 128.5 110.5 Total $ 1,073.8 $ 983.7 (1) Other funds consist primarily of limited partnership interests in corporate mezzanine, venture capital and private credit funds. |
Offsetting assets and liability | The following table presents instruments that were subject to a master netting arrangement for the Company. ($ in millions) Gross Net Amounts Gross Amounts Not Offset Gross Financial Cash Net June 30, 2023 Asset derivatives: Free-standing derivatives $ 12.7 $ — $ 12.7 $ — $ 12.0 $ 0.7 December 31, 2022 Asset derivatives: Free-standing derivatives $ 6.8 $ — $ 6.8 $ — $ 5.9 $ 0.9 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of company's fair value hierarchy measured at recurring basis | The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. During the six months ended June 30, 2023 and 2022, there were no transfers between Level 1 and Level 2. As of June 30, 2023, Level 3 invested assets comprised 8.8% of the Company’s total investment portfolio at fair value. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 June 30, 2023 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 583.1 $ 583.1 $ — $ 580.6 $ 2.5 Other, including U.S. Treasury securities 369.0 369.0 44.8 324.2 — Municipal bonds 1,252.6 1,252.6 — 1,188.7 63.9 Foreign government bonds 24.8 24.8 — 24.8 — Corporate bonds 1,828.4 1,828.4 13.0 1,503.9 311.5 Other asset-backed securities 1,154.0 1,154.0 — 1,055.1 98.9 Total fixed maturity securities 5,211.9 5,211.9 57.8 4,677.3 476.8 Equity securities 85.8 85.8 18.0 65.8 2.0 Short-term investments 74.0 74.0 74.0 — — Other investments 45.8 45.8 — 45.8 — Totals $ 5,417.5 $ 5,417.5 $ 149.8 $ 4,788.9 $ 478.8 Separate Account variable annuity assets (1) $ 3,098.5 $ 3,098.5 $ 3,098.5 $ — $ — Financial Liabilities (2) $ 86.2 $ 86.2 $ — $ 2.6 $ 83.6 December 31, 2022 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 570.4 $ 570.4 $ — $ 567.8 $ 2.6 Other, including U.S. Treasury securities 342.6 342.6 24.6 318.0 — Municipal bonds 1,269.7 1,269.7 — 1,215.3 54.4 Foreign government bonds 33.6 33.6 — 33.6 — Corporate bonds 1,901.7 1,901.7 12.2 1,628.2 261.3 Other asset-backed securities 1,067.0 1,067.0 — 962.0 105.0 Total fixed maturity securities 5,185.0 5,185.0 36.8 4,724.9 423.3 Equity securities 99.6 99.6 23.3 74.3 2.0 Short-term investments 109.4 109.4 109.4 — — Other investments 38.6 38.6 — 38.6 — Totals $ 5,432.6 $ 5,432.6 $ 169.5 $ 4,837.8 $ 425.3 Separate Account (variable annuity) assets (1) $ 2,792.3 $ 2,792.3 $ 2,792.3 $ — $ — Financial Liabilities (2) $ 92.5 $ 92.5 $ — $ 1.2 $ 91.3 (1) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of the Separate Account variable annuity assets. (2) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. |
Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis | The reconciliation for all financial assets and financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows: ($ in millions) Financial Assets Financial Liabilities (1) Municipal Corporate Mortgage-Backed and Other Asset- Backed Securities (2) Total Equity Total Beginning balance, April 1, 2023 $ 55.4 $ 284.0 $ 104.6 $ 444.0 $ 2.0 $ 446.0 $ 91.2 Transfers into Level 3 (3) — 30.2 0.4 30.6 — 30.6 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net gains/losses included in net income — — — — — — (3.4) Net unrealized gains/losses included in OCI (0.8) (2.2) (0.7) (3.7) — (3.7) (0.9) Purchases 9.5 6.6 — 16.1 — 16.1 — Issuances — — — — — — 2.2 Sales — (5.1) — (5.1) — (5.1) — Settlements — — — — — — — Paydowns, maturities and distributions (0.2) (2.0) (2.9) (5.1) — (5.1) (5.5) Ending balance, June 30, 2023 $ 63.9 $ 311.5 $ 101.4 $ 476.8 $ 2.0 $ 478.8 $ 83.6 Beginning balance, January 1, 2023 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.3 Transfers into Level 3 (3) — 36.1 0.8 36.9 — 36.9 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net gains/losses included in net income — — — — — — (2.5) Net unrealized gains/losses included in OCI 0.5 (1.2) (1.1) (1.8) — (1.8) (0.6) Purchases 9.5 25.6 0.3 35.4 — 35.4 — Issuances — — — — — — 4.3 Sales — (7.7) — (7.7) — (7.7) — Settlements — — — — — — — Paydowns, maturities and distributions (0.5) (2.6) (6.2) (9.3) — (9.3) (8.9) Ending balance, June 30, 2023 $ 63.9 $ 311.5 $ 101.4 $ 476.8 $ 2.0 $ 478.8 $ 83.6 (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the three and six months ended June 30, 2023 and 2022 were related to changes in the primary pricing source and changes in observability of external information used in determining fair value. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. ($ in millions) Financial Assets Financial (1) Municipal Corporate Mortgage-Backed and Other Asset- Backed Securities (2) Total Equity Total Beginning balance, April 1, 2022 $ 54.1 $ 226.0 $ 89.8 $ 369.9 $ 1.3 $ 371.2 $ 103.1 Transfers into Level 3 (3) — 56.0 17.5 73.5 — 73.5 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net gains/losses included in net income — — (1.4) (1.4) 0.1 (1.3) (2.0) Net unrealized gains/losses included in OCI (2.8) (4.9) (3.2) (10.9) — (10.9) (2.0) Purchases — 4.9 — 4.9 — 4.9 — Issuances — — — — — — 1.2 Sales — — (2.1) (2.1) — (2.1) — Settlements — — — — — — — Paydowns, maturities and distributions (0.3) (11.5) (3.5) (15.3) — (15.3) (2.5) Ending balance, June 30, 2022 $ 51.0 $ 270.5 $ 97.1 $ 418.6 $ 1.4 $ 420.0 $ 97.8 Beginning balance, January 1, 2022 $ 60.8 $ 210.3 $ 98.9 $ 370.0 $ 1.4 $ 371.4 $ 111.4 Transfers into Level 3 (3) — 123.4 22.3 145.7 — 145.7 — Transfers out of Level 3 (3) (3.2) — (4.8) (8.0) — (8.0) — Total gains or losses Net gains/losses included in net income — — (2.3) (2.3) — (2.3) (7.6) Net unrealized gains/losses included in OCI (6.2) (11.3) (7.4) (24.9) — (24.9) (2.4) Purchases — 4.9 — 4.9 — 4.9 — Issuances — — — — — — 2.1 Sales — — (2.1) (2.1) — (2.1) — Settlements — — — — — — — Paydowns, maturities and distributions (0.4) (56.8) (7.5) (64.7) — (64.7) (5.7) Ending balance, June 30, 2022 $ 51.0 $ 270.5 $ 97.1 $ 418.6 $ 1.4 $ 420.0 $ 97.8 (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the three and six months ended June 30, 2022 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. |
Fair value measurement inputs and valuation techniques | The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3. ($ in millions) Financial Fair Value as of June 30, 2023 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Municipal bonds $ 63.9 discounted cash flow option adjusted spread 308 bps Corporate bonds 311.5 discounted cash flow yield 6.1% vendor priced vendor priced 79.64 discounted cash flow yield 11.0% market comparable EV / Fwd EBITDA (x) 5.92x discounted cash flow discount rate 6.2% - 10.7% discounted cash flow exit cap 6.2% discounted cash flow option adjusted spread 241 bps Mortgage-backed and other asset-backed securities 101.4 vendor price haircut 0.01% -0.3% discounted cash flow discount margin 39.5% discounted cash flow discount rate 16.0% - 21.0% discounted cash flow median comparable yield 20.7% - 43.2% discounted cash flow yield 6.4% - 6.5% discounted cash flow LIBOR 2.3% discounted cash flow PDI spread 5.5% discounted cash flow SBL spread 4.5% discounted cash flow weighting 17.0% - 83.0% discounted cash flow CPR 20.0% discounted cash flow default rate annual 4.0% discounted cash flow recovery 65.0% discounted cash flow I spread 175 bps discounted cash flow N spread 463 bps discounted cash flow T Spread 226 bps market comparable median price 81.34 Equity securities 2.0 black-scholes volatility low 28.0% - high 44.0% black-scholes time to exit 2.67 bps market comparable price/book ExAOCI 1.06x ($ in millions) Financial Fair Value as of June 30, 2023 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Derivatives $ 87.2 discounted cash flow lapse rate 5.4% mortality multiplier (4) 67.8% option budget 0.9% - 3.8% non-performance adjustment (5) 5.0% Net MRBs $ (3.6) discounted cash flow lapse rate 5.3% mortality multiplier (4) 67.8% (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) "N spread" is the interpolated weighted average life point on the swap curve. (3) "T spread" is a specific point on the OTR curve. (4) Mortality multiplier is applied to the Annuity 2000 table. (5) Determined as a percentage of the risk-free rate. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.4% 1.7 % 0.1 % N.M. Expected experience 0.7 % 0.1% - 1.2% 1.6 % 0.2 % N.M. Lapses Actual experience 3.4 % 3.6% - 5.6% 3.1 % 3.6 % N.M. Expected experience 4.7 % 5.6% - 25.9% 3.1 % 5.2 % N.M. June 30, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.8 % 0.1% - 0.1% 1.7 % 0.2 % N.M. Expected experience 0.7 % 0.1% - 0.1% 1.4 % 0.2 % N.M. Lapses Actual experience 3.1 % 5.0% - 64.1% 3.4 % 3.1 % N.M. Expected experience 5.8 % 4.9% - 6.0% 3.2 % 7.4 % N.M. |
Summary of fair value assets and liabilities measured on nonrecurring basis | The following table presents the carrying amount, fair value and fair value hierarchy of these financial assets and financial liabilities. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 June 30, 2023 Financial Assets Other investments $ 178.3 $ 181.8 $ — $ — $ 181.8 Deposit asset on reinsurance 2,514.9 2,233.6 — — 2,233.6 Financial Liabilities Investment contract and future policy benefit reserves, fixed annuity contracts 4,925.1 4,825.4 — — 4,825.4 Investment contract and future policy benefit reserves, account values on life contracts 114.9 110.9 — — 110.9 Other policyholder funds 897.2 897.2 — 889.9 7.3 Reverse repurchase agreements 0.2 0.4 — 0.4 — Short-term debt 249.0 249.0 — — 249.0 Long-term debt 249.1 236.1 — 236.1 — December 31, 2022 Financial Assets Other investments $ 167.4 $ 170.9 $ — $ — $ 170.9 Deposit asset on reinsurance 2,516.6 2,207.2 — — 2,207.2 Financial Liabilities Investment contract and future policy benefit reserves, fixed annuity contracts 4,988.5 4,901.3 — — 4,901.3 Investment contract and future policy benefit reserves, account values on life contracts 111.9 107.7 — — 107.7 Other policyholder funds 863.0 863.0 — 810.7 52.3 Reverse repurchase agreements 70.2 73.3 — 73.3 — Short-term debt 249.0 249.0 — — 249.0 Long-term debt 249.0 240.5 — 240.5 — |
Short-Duration Insurance Cont_2
Short-Duration Insurance Contracts (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Reconciliation of property and casualty unpaid claims and claim expense | The following table is a summary reconciliation of the beginning and ending Property & Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Property & Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Property & Casualty Beginning gross reserves $ 397.8 $ 356.2 $ 388.7 $ 362.4 Less: reinsurance recoverables 101.3 108.0 100.8 110.3 Net reserves, beginning of period (1) 296.5 248.2 287.9 252.1 Incurred claims and claim expenses: Claims occurring in the current period 152.0 144.1 280.8 252.4 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) — 6.0 — 6.0 Total claims and claim expenses incurred 152.0 150.1 280.8 258.4 Claims and claim expense payments for claims occurring during: Current period 90.2 84.4 130.8 118.2 Prior periods 46.8 45.3 126.4 123.7 Total claims and claim expense payments 137.0 129.7 257.2 241.9 Net reserves, end of period (1) 311.5 268.6 311.5 268.6 Plus: reinsurance recoverables 104.3 109.8 104.3 109.8 Ending gross reserves $ 415.8 $ 378.4 $ 415.8 $ 378.4 (1) Reserves net of expected reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development. ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Group Benefits Beginning gross reserves $ 120.3 $ 133.2 $ 121.6 $ 125.4 Less: reinsurance recoverables 28.0 29.8 27.9 28.6 Net reserves, beginning of period (1) 92.3 103.4 93.7 96.8 Incurred claims and claim expenses: Claims occurring in the current period 20.8 16.2 41.0 44.9 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) (3.0) (0.1) (7.9) (2.0) Total claims and claim expenses incurred 17.8 16.1 33.1 42.9 Claims and claim expense payments for claims occurring during: Current period 8.9 11.4 13.1 15.8 Prior periods 7.6 7.5 20.0 23.4 Total claims and claim expense payments 16.5 18.9 33.1 39.2 Net reserves, end of period (1) 93.7 100.6 93.7 100.6 Plus: reinsurance recoverables 28.2 29.6 28.2 29.6 Ending gross reserves $ 121.9 $ 130.2 $ 121.9 $ 130.2 (1) Reserves net of expected reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development. |
Schedule of Reconciliation of Net Incurred and Paid Claims Development To Liability for Claims and Claim Adjustment Expenses | ($ in millions) As of June 30, 2023 As of December 31, 2022 Ending gross reserves Property & Casualty $ 415.8 $ 388.7 Group Benefits 121.9 121.6 Total short-duration insurance contracts 537.7 510.3 Other than short-duration (1) 60.1 53.7 Total unpaid claims and claims expenses $ 597.8 $ 564.0 (1) |
Long-Duration Insurance Contr_2
Long-Duration Insurance Contracts (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Liability for Future Policy Benefit, Activity | The following table summarizes the balance of and changes in LFPB on January 1, 2021 due to adoption of ASU 2018-12. The impact of shifts between deferred profit liabilities (DPL) and LFPB for limited-payment products are presented as offsetting line items in the effect of net premiums exceeding gross premiums and the effect of decrease/increase of DPL. ($ in millions) Whole Life Term Life Experience Life Limited Pay Whole Life Supplemental Health (1) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables, end of year December 31, 2020 (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 (1) As of January 1, 2021, the net LFPB for Supplemental Health was $163.5 million for cancer, $31.2 million for accident, $32.0 million for disability and $188.8 million for other supplemental health policies. The balances of and changes in LFPB as of and for the three months ended June 30, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at April 1, 2023 $ 222.2 $ 243.8 $ 69.8 $ 31.2 $ 172.5 $ — April 1, 2023 balance at original discount rate 246.6 266.0 65.0 33.1 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (5.3) — — — — Actual variances from expected experience 1.0 0.5 0.5 0.8 1.7 — Adjusted balance at April 1, 2023 247.6 261.2 65.5 33.9 206.8 — Issuances (3) 2.6 6.5 — 1.1 4.6 1.4 Interest accruals (4) 1.8 2.7 0.8 0.3 1.5 — Net premiums collected (5) (5.0) (5.3) (1.6) (1.1) (5.4) (1.4) June 30, 2023 balance at original discount rate 247.0 265.1 64.7 34.2 207.5 — Effect of changes in discount rate assumptions (29.5) (24.8) 3.4 (2.5) (35.5) — Balance at June 30, 2023 217.5 240.3 68.1 31.7 172.0 — Present value of expected future policy benefits: Balance at April 1, 2023 515.1 365.0 892.5 84.4 437.7 105.9 April 1, 2023 balance at original discount rate 585.4 405.2 801.5 100.3 530.6 113.3 Effect of: Changes in cash flow assumptions — (5.6) — — — — Actual variances from expected experience 1.1 2.2 0.5 0.9 1.8 — Adjusted balance at April 1, 2023 586.5 401.8 802.0 101.2 532.4 113.3 Issuances 2.6 6.6 — 1.1 4.6 1.6 Interest accruals 4.7 3.5 11.9 1.0 3.6 1.1 Benefit payments (6) (5.1) (5.5) (14.3) (0.7) (14.8) (3.0) June 30, 2023 balance at original discount rate 588.7 406.4 799.6 102.6 525.8 113.0 Effect of changes in discount rate assumptions (81.6) (45.8) 71.9 (17.3) (99.2) (9.4) Balance at June 30, 2023 507.1 360.6 871.5 85.3 426.6 103.6 Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 Less: Reinsurance recoverable (63.1) (16.7) (0.7) (0.2) (3.9) (3.5) Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at June 30, 2023 $ 226.3 $ 103.6 $ 802.8 $ 53.5 $ 250.6 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the six months ended June 30, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at January 1, 2023 $ 215.1 $ 234.7 $ 68.3 $ 29.7 $ 167.4 $ — January 1, 2023 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (5.3) — — — — Actual variances from expected experience 1.8 (1.0) 0.7 1.3 0.3 — Adjusted balance at January 1, 2023 247.7 259.1 66.2 33.7 205.4 — Issuances (3) 5.4 13.0 — 2.1 9.9 3.4 Interest accruals (4) 3.6 5.2 1.8 0.6 3.0 — Net premiums collected (5) (9.7) (12.2) (3.3) (2.2) (10.8) (3.4) June 30, 2023 balance at original discount rate 247.0 265.1 64.7 34.2 207.5 — Effect of changes in discount rate assumptions (29.5) (24.8) 3.4 (2.5) (35.5) — Balance at June 30, 2023 217.5 240.3 68.1 31.7 172.0 — Present value of expected future policy benefits: Balance at January 1, 2023 493.6 347.0 867.5 79.4 431.7 103.3 January 1, 2023 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of: Changes in cash flow assumptions — (5.6) — — — — Actual variances from expected experience 1.9 0.7 0.9 1.5 0.1 (0.5) Adjusted balance at January 1, 2023 583.8 396.1 806.1 100.1 537.2 112.9 Issuances 5.5 13.2 — 2.1 9.9 4.0 Interest accruals 9.4 7.5 23.8 1.9 7.2 2.2 Benefit payments (6) (10.0) (10.4) (30.3) (1.5) (28.5) (6.1) June 30, 2023 balance at original discount rate 588.7 406.4 799.6 102.6 525.8 113.0 Effect of changes in discount rate assumptions (81.6) (45.8) 71.9 (17.3) (99.2) (9.4) Balance at June 30, 2023 507.1 360.6 871.5 85.3 426.6 103.6 Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 Less: Reinsurance recoverable (63.1) (16.7) (0.7) (0.2) (3.9) (3.5) Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at June 30, 2023 $ 226.3 $ 103.6 $ 802.8 $ 53.5 $ 250.6 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present Value of Expected Net Premiums Balance at January 1, 2022 (7) $ 260.7 $ 264.4 $ 74.6 $ 29.7 $ 226.7 $ — January 1, 2022 balance at original discount rate (7) 239.3 235.4 55.9 27.2 223.1 — Effect of: Change in cash flow assumptions 5.2 18.7 9.1 2.0 12.2 — Actual variances from expected experience 7.2 (4.2) 3.0 1.6 (25.3) — Adjusted balance at January 1, 2022 251.7 249.9 68.0 30.8 210.0 — Issuances (3) 12.5 28.0 — 6.3 12.0 5.3 Interest accruals (3) 6.7 9.0 3.3 1.1 5.9 — Net premiums collected (5) (25.0) (21.5) (5.8) (5.8) (22.8) (5.3) December 31, 2022 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of changes in discount rate assumptions (30.8) (30.7) 2.8 (2.7) (37.7) — Balance at December 31, 2022 215.1 234.7 68.3 29.7 167.4 — Present Value of Expected Future Policy Benefits Balance at January 1, 2022 (7) 660.4 411.5 1,172.7 102.9 590.6 129.1 January 1, 2022 balance at original discount rate (7) 566.1 360.0 802.6 86.6 584.2 115.7 Effect of: Changes in cash flow assumptions 5.2 21.5 11.0 2.0 13.8 — Actual variances from expected experience 7.7 (4.7) 3.6 1.4 (30.0) 0.4 Adjusted balance at January 1, 2022 579.0 376.8 817.2 90.0 568.0 116.1 Issuances 12.4 28.3 — 6.4 12.0 5.3 Interest accruals 18.0 14.4 47.4 3.4 15.0 4.3 Benefit payments (6) (27.5) (18.5) (59.4) (1.2) (57.9) (12.3) December 31, 2022 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of changes in discount rate assumptions (88.3) (54.0) 62.3 (19.2) (105.4) (10.1) Balance at December 31, 2022 493.6 347.0 867.5 79.4 431.7 103.3 Net liability for future policy benefits 278.4 112.2 799.3 49.6 264.4 103.3 Less: Reinsurance recoverable (63.1) (15.3) (0.8) — (3.4) (3.2) Net liability for future policy benefits, after reinsurance recoverable 215.3 96.9 798.5 49.6 261.0 100.1 Impact of flooring on net liability for future policy benefits 1.1 0.2 — — — — Net liability for future policy benefits at December 31, 2022 $ 216.4 $ 97.1 $ 798.5 $ 49.6 $ 261.0 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. (7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022. The balances of and changes in LFPB (including a summary of the balance and changes in the LFPB on January 1, 2021 due to adoption of ASU 2018-12) as of and for the year ended December 31, 2021 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Change in cash flow assumptions, effect of decrease of the DPL — — — — — — Adjustment for removal of related balances in AOCI — — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 Present Value of Expected Net Premiums Balance at January 1, 2021 $ 176.5 $ 244.1 $ 78.0 $ 25.4 $ 233.0 $ — January 1, 2021 balance at original discount rate 143.5 200.8 55.2 22.0 218.2 — Effect of: Change in cash flow assumptions 2.4 (4.5) (3.3) — (1.8) — Actual variances from expected experience 8.8 6.9 6.3 1.0 6.3 — Adjusted balance at January 1, 2021 154.7 203.2 58.2 23.0 222.7 — Issuances (3) 13.3 29.8 — 10.2 13.0 3.7 Interest accruals (4) 6.2 7.9 3.2 0.8 5.9 — Net premiums collected (5) (16.6) (19.8) (5.6) (6.8) (24.1) (3.7) December 31, 2021 balance at original discount rate 157.6 221.1 55.8 27.2 217.5 — Effect of changes in discount rate assumptions 25.4 32.0 18.8 2.5 4.0 — Balance at December 31, 2021 183.0 253.1 74.6 29.7 221.5 — Present Value of Expected Future Policy Benefits Balance at January 1, 2021 507.1 364.7 1,269.3 95.0 626.9 136.5 January 1, 2021 balance at original discount rate 362.5 294.0 813.5 73.4 589.1 115.9 Effect of: Changes in cash flow assumptions 2.8 (4.8) (3.6) — (3.0) — Actual variances from expected experience 8.7 7.2 6.6 1.1 6.2 (0.4) Adjusted balance at January 1, 2021 374.0 296.4 816.5 74.5 592.3 115.5 Issuances 13.3 29.8 — 10.2 13.0 3.7 Interest accruals 17.1 12.0 47.9 2.9 15.7 4.5 Benefit payments (5) (18.1) (18.7) (61.9) (1.0) (48.4) (12.1) December 31, 2021 balance at original discount rate 386.3 319.5 802.5 86.6 572.6 111.6 Effect of changes in discount rate assumptions 114.4 51.1 370.2 16.3 8.0 13.1 Balance at December 31, 2021 500.7 370.6 1,172.7 102.9 580.6 124.7 Net liability for future policy benefits 317.7 117.6 1,098.1 73.2 359.1 124.7 Less: Reinsurance recoverable (0.5) (5.5) (1.1) (0.2) — — Net liability for future policy benefits, after reinsurance recoverable $ 317.2 $ 112.1 $ 1,097.0 $ 73.0 $ 359.1 $ 124.7 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2021, the net LFPB for Supplemental Health was $140.8 million for cancer, $28.7 million for accident, $29.3 million for disability and $160.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): ($ in millions) Gross premiums or assessments Gross premiums or assessments Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Whole life $ 6.7 $ 6.2 $ 13.3 $ 12.3 Term life 11.4 10.4 22.2 20.3 Experience life 7.9 8.3 16.1 16.8 Limited-pay whole life 1.7 2.5 3.3 4.3 Supplemental health 30.0 30.6 59.7 61.3 SPIA (life contingent) 1.4 0.8 3.6 3.3 Total $ 59.1 $ 58.8 $ 118.2 $ 118.3 ($ in millions) Interest expense Interest expense Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Whole life $ 2.9 $ 2.9 $ 5.8 $ 5.6 Term life 1.2 1.1 2.4 2.2 Experience life 10.9 11.0 21.9 22.1 Limited-pay whole life 0.7 0.6 1.3 1.2 Supplemental health 2.1 2.3 4.3 4.7 SPIA (life contingent) 1.1 1.1 2.2 2.2 Total $ 18.9 $ 19.0 $ 37.9 $ 38.0 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: ($ in millions) As of June 30, 2023 As of December 31, 2022 Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 473.5 $ 325.1 $ 469.0 $ 322.5 Expected future benefits and expenses 1,134.3 588.7 1,121.4 580.4 Term life Expected future gross premiums 751.4 469.0 739.3 464.2 Expected future benefits and expenses 693.9 406.4 678.0 401.0 Experience Life Expected future gross premiums 551.9 306.7 569.6 315.5 Expected future benefits and expenses 1,728.7 799.6 1,755.4 805.2 Limited-pay whole life Expected future gross premiums 63.1 48.1 60.8 46.5 Expected future benefits and expenses 234.6 102.6 226.8 98.6 Supplemental health Expected future gross premiums 1,645.7 1,213.6 1,640.5 1,214.9 Expected future benefits and expenses 720.7 525.8 730.4 537.0 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 158.1 113.0 157.7 113.4 The following table provides the weighted-average durations of LFPB, in years: As of June 30, 2023 2022 Whole life 18.0 18.0 Term life 16.4 15.9 Experience life 10.5 10.8 Limited-pay whole life 22.2 21.5 Supplemental health 10.3 9.8 SPIA (life contingent) 7.7 7.7 The following table provides ranges of the weighted-average interest rates for LFPB: As of June 30, 2023 2022 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 5.0% Current discount rate 4.7% - 5.2% 4.1% - 4.6% Term life Interest accretion rate 4.1% - 4.3% 4.1% - 4.4% Current discount rate 5.2% - 5.2% 4.6% - 4.6% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.2 % 4.7 % Limited-pay whole life Interest accretion rate 3.9 % 3.9 % Current discount rate 5.2 % 4.7 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.2% - 5.3% 4.5% - 5.0% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.0% Current discount rate 5.2% - 5.2% 4.5% - 4.5% |
Schedule of Liability for Future Policy Benefits, by Product Segment | The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets: ($ in millions) June 30, 2023 December 31, 2022 Whole life $ 289.4 $ 279.5 Term life 120.3 112.4 Experience life 803.5 799.3 Limited-pay whole life 53.7 49.6 Supplemental health 254.5 264.4 SPIA (life contingent) 103.6 103.3 Limited-pay whole life DPL 3.4 3.2 SPIA (life contingent) DPL 1.0 0.8 Reconciling items (1) 111.5 105.5 Total $ 1,740.9 $ 1,718.0 (1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves. |
Fair Value Measurement Inputs and Valuation Techniques | The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3. ($ in millions) Financial Fair Value as of June 30, 2023 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Municipal bonds $ 63.9 discounted cash flow option adjusted spread 308 bps Corporate bonds 311.5 discounted cash flow yield 6.1% vendor priced vendor priced 79.64 discounted cash flow yield 11.0% market comparable EV / Fwd EBITDA (x) 5.92x discounted cash flow discount rate 6.2% - 10.7% discounted cash flow exit cap 6.2% discounted cash flow option adjusted spread 241 bps Mortgage-backed and other asset-backed securities 101.4 vendor price haircut 0.01% -0.3% discounted cash flow discount margin 39.5% discounted cash flow discount rate 16.0% - 21.0% discounted cash flow median comparable yield 20.7% - 43.2% discounted cash flow yield 6.4% - 6.5% discounted cash flow LIBOR 2.3% discounted cash flow PDI spread 5.5% discounted cash flow SBL spread 4.5% discounted cash flow weighting 17.0% - 83.0% discounted cash flow CPR 20.0% discounted cash flow default rate annual 4.0% discounted cash flow recovery 65.0% discounted cash flow I spread 175 bps discounted cash flow N spread 463 bps discounted cash flow T Spread 226 bps market comparable median price 81.34 Equity securities 2.0 black-scholes volatility low 28.0% - high 44.0% black-scholes time to exit 2.67 bps market comparable price/book ExAOCI 1.06x ($ in millions) Financial Fair Value as of June 30, 2023 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Derivatives $ 87.2 discounted cash flow lapse rate 5.4% mortality multiplier (4) 67.8% option budget 0.9% - 3.8% non-performance adjustment (5) 5.0% Net MRBs $ (3.6) discounted cash flow lapse rate 5.3% mortality multiplier (4) 67.8% (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) "N spread" is the interpolated weighted average life point on the swap curve. (3) "T spread" is a specific point on the OTR curve. (4) Mortality multiplier is applied to the Annuity 2000 table. (5) Determined as a percentage of the risk-free rate. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.4% 1.7 % 0.1 % N.M. Expected experience 0.7 % 0.1% - 1.2% 1.6 % 0.2 % N.M. Lapses Actual experience 3.4 % 3.6% - 5.6% 3.1 % 3.6 % N.M. Expected experience 4.7 % 5.6% - 25.9% 3.1 % 5.2 % N.M. June 30, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.8 % 0.1% - 0.1% 1.7 % 0.2 % N.M. Expected experience 0.7 % 0.1% - 0.1% 1.4 % 0.2 % N.M. Lapses Actual experience 3.1 % 5.0% - 64.1% 3.4 % 3.1 % N.M. Expected experience 5.8 % 4.9% - 6.0% 3.2 % 7.4 % N.M. |
Policyholder Account Balance | The following tables summarize balances of and changes in policyholders' account balances: ($ in millions) Three Months Ended June 30, 2023 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at April 1, 2023 $ 49.9 $ 63.5 $ 4,577.4 $ 498.4 $ 33.8 Premiums received (1) $ 3.1 $ (0.2) $ 59.0 $ 5.4 $ 1.0 Surrenders and withdrawals (2) (0.3) (0.6) (103.9) (18.6) (0.1) Benefit payments (3) — (0.4) (17.8) (0.9) (1.4) Net transfers from (to) separate account (0.2) — 7.9 (2.4) — Interest credited (4) 0.2 0.7 39.8 0.9 0.2 Other (0.7) — 1.1 (1.6) — Balance at June 30, 2023 $ 52.0 $ 63.0 $ 4,563.5 $ 481.2 $ 33.5 Weighted-average crediting rate (0.1) % (5.0) % — % — % (3.0) % Net amount at risk (5) $ — $ — $ (23.3) $ — $ — Cash surrender value $ 32.9 $ 62.8 $ 4,540.9 $ 486.7 $ 33.7 ($ in millions) Three Months Ended June 30, 2022 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at April 1, 2022 $ 41.0 $ 65.9 $ 4,548.2 $ 518.2 $ 37.0 Premiums received (1) $ 2.5 $ — $ 47.5 $ 8.1 $ 0.6 Surrenders and withdrawals (2) (0.4) (0.8) (59.5) (9.4) (0.1) Benefit payments (3) — (0.4) (14.4) (0.7) (1.5) Net transfers from (to) separate account — — 15.8 (0.3) — Interest credited (4) 0.3 0.7 38.3 1.3 0.3 Other (0.8) — (2.2) 1.0 — Balance at June 30, 2022 $ 42.6 $ 65.4 $ 4,573.7 $ 518.2 $ 36.3 Weighted-average crediting rate (1.4) % — % — % (0.2) % — % Net amount at risk (5) $ — $ — $ 12.1 $ — $ — Cash surrender value $ 1.4 $ (0.5) $ 26.3 $ (1.2) $ (0.7) (1) Premiums received represents premiums collected from policyholder during the period of in force business. (2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (4) Interest credited represents interest earned and credited to policyholders' account balance during the periods. ($ in millions) Six Months Ended June 30, 2023 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2023 $ 47.6 $ 64.3 $ 4,591.1 $ 510.3 $ 34.4 Premiums received (1) $ 6.7 $ (0.4) $ 113.9 $ 10.5 $ 2.1 Surrenders and withdrawals (2) (0.7) (1.5) (202.0) (32.5) (0.2) Benefit payments (3) — (0.9) (36.9) (1.5) (3.1) Net transfers from (to) separate account (0.2) — 14.5 (3.3) — Interest credited (4) 0.2 1.5 79.9 0.9 0.5 Other (1.6) — 3.0 (3.2) (0.2) Balance at June 30, 2023 $ 52.0 $ 63.0 $ 4,563.5 $ 481.2 $ 33.5 Weighted-average crediting rate — % — % 3.6 % — % — % Net amount at risk (5) $ — $ — $ 16.2 $ — $ — Cash surrender value $ — $ — $ 109.9 $ — $ — ($ in millions) Six Months Ended June 30, 2022 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2022 $ 39.1 $ 66.2 $ 4,532.7 $ 522.6 $ 37.7 Premiums received (1) $ 4.7 $ — $ 94.7 $ 17.4 $ 1.4 Surrenders and withdrawals (2) (0.6) (1.5) (119.8) (20.3) (0.4) Benefit payments (3) — (0.8) (32.9) (1.8) (3.0) Net transfers from (to) separate account — — 26.8 (0.4) — Interest credited (4) 0.8 1.5 77.2 3.1 0.6 Other (1.4) — (5.0) (2.4) — Balance at June 30, 2022 $ 42.6 $ 65.4 $ 4,573.7 $ 518.2 $ 36.3 Weighted-average crediting rate 4.1 % 5.0 % 3.5 % 1.2 % 3.0 % Net amount at risk (5) $ — $ — $ 78.5 $ — $ — Cash surrender value $ 27.4 $ 64.7 $ 4,515.7 $ 503.0 $ 35.9 (1) Premiums received represents premiums collected from policyholder during the period of in force business. (2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (4) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets: ($ in millions) June 30, 2023 December 31, 2022 Indexed universal life $ 52.0 $ 47.6 Experience Life 63.0 64.3 Fixed account annuities 4,563.5 4,591.1 Fixed indexed account annuities 481.2 510.3 SPIA (non-life contingent) 33.5 34.4 Reconciling items (1) 13.0 12.9 Total $ 5,206.2 $ 5,260.6 (1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs. |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the gross 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: ($ in millions) June 30, 2023 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 81.5 $ 327.4 $ 372.3 $ 170.8 $ 952.0 Equal to 2% but less than 3% 214.5 46.7 9.4 0.8 271.4 Equal to 3% but less than 4% 626.5 12.2 0.7 — 639.4 Equal to 4% but less than 5% 2,693.4 — — — 2,693.4 5% or higher 90.3 — — — 90.3 Total $ 3,706.2 $ 386.3 $ 382.4 $ 171.6 $ 4,646.5 ($ in millions) December 31, 2022 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 262.5 $ 370.6 $ 214.4 $ 96.1 $ 943.6 Equal to 2% but less than 3% 256.1 19.8 4.7 — 280.6 Equal to 3% but less than 4% 667.4 0.4 0.4 — 668.2 Equal to 4% but less than 5% 2,706.1 — — — 2,706.1 5% or higher 91.7 — — — 91.7 Total $ 3,983.8 $ 390.8 $ 219.5 $ 96.1 $ 4,690.2 (1) Excludes products not containing a fixed guaranteed minimum crediting rate. |
Separate Account, Liability | The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets (1) : ($ in millions) Retirement Services Variable Account Annuities June 30, 2023 December 31, 2022 Balance, beginning of year $ 2,792.3 $ 3,441.0 Deposits 114.1 240.3 Withdrawals (105.0) (186.8) Net transfers (11.2) (38.1) Fees and charges (18.4) (36.8) Market appreciation (depreciation) 330.2 (619.7) Other (3.5) (7.6) Balance, end of period $ 3,098.5 $ 2,792.3 (1) The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. |
Market Risk Benefit, Activity | The following table summarizes the balance of and changes in the net liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Balance, end of year December 31, 2020 $ 0.1 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 6.8 Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance 1.7 Total adjustment for the difference between carrying amount and fair value 8.5 Balance, beginning of year January 1, 2021 8.6 Less: Reinsurance recoverable — Balance, beginning of year January 1, 2021, net of reinsurance $ 8.6 The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the three and six months ended June 30, 2023 and 2022, respectively: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance, beginning of period $ 1.3 $ 4.0 $ 0.2 $ 4.8 Balance, beginning of period, before effects of changes in the instrument-specific credit risk 0.9 1.6 — 2.0 Changes in market risk benefits (1) (4.1) 2.6 (3.2) 2.2 Balance, end of period (2) $ (3.2) $ 4.2 $ (3.2) $ 4.2 Effect of changes in the instrument-specific credit risk (0.4) 0.4 (0.4) 0.4 Balance, end of period $ (3.6) $ 4.6 $ (3.6) $ 4.6 Net amount at risk (3) $ 28.1 $ 48.9 $ 28.1 $ 48.9 Weighted-average attained age of contract holders 63 62 63 62 (1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets. ($ in millions) As of June 30, 2023 As of December 31, 2022 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (6.2) $ 2.6 $ (3.6) $ (4.4) $ 4.7 $ 0.3 |
Deferred Policy Acquisition Costs | The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 DAC and Deferred Sales Inducements The following tables roll-forward DAC for the periods indicated: ($ in millions) Three Months Ended June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 21.2 $ 30.7 $ 5.8 $ 6.8 $ 15.7 $ 6.7 $ 219.7 Capitalizations 0.7 1.5 0.1 0.3 0.7 0.7 3.7 Amortization expense (0.3) (0.8) (0.2) (0.1) (0.3) (0.2) (3.7) Experience adjustment — — — — — (0.2) (2.5) Balance, end of period $ 21.6 $ 31.4 $ 5.7 $ 7.0 $ 16.1 $ 7.0 $ 217.2 ($ in millions) Six Months Ended June 30, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 Capitalizations 1.3 2.8 0.1 0.5 1.2 1.3 7.7 Amortization expense (0.6) (1.4) (0.2) (0.2) (0.5) (0.3) (7.4) Experience adjustment — — — — — (0.2) (4.2) Balance, end of period $ 21.6 $ 31.4 $ 5.7 $ 7.0 $ 16.1 $ 7.0 $ 217.2 ($ in millions) Year Ended December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of year $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 Capitalizations 3.0 5.0 0.2 1.4 2.5 1.8 15.5 Amortization expense (1.2) (2.5) (0.4) (0.3) (0.8) (0.5) (15.8) Experience adjustment — — — — — — (1.9) Balance, end of year $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 ($ in millions) Year Ended December 31, 2021 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 Capitalizations 2.4 4.2 0.2 1.5 1.7 1.1 17.3 Amortization expense (1.1) (2.3) (0.4) (0.3) (0.8) (0.5) (16.0) Experience adjustment — — — — (0.1) — (1.1) Balance, end of year December 31, 2021 $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: ($ in millions) June 30, 2023 December 31, 2022 Whole life $ 21.6 $ 20.9 Term life 31.4 30.0 Experience life 5.7 5.8 Limited pay whole life 7.0 6.7 Indexed universal life 16.1 15.4 Supplemental health 7.0 6.2 Total annuities 217.2 221.1 Reconciling item (1) 26.9 24.5 Total $ 332.9 $ 330.6 (1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. |
Deferred Sale Inducement Cost | The following table rolls-forward the DSI balance as of and for the three and six months ended June 30, 2023: ($ in millions) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Balance, beginning of period $ 15.4 $ 15.9 Capitalizations — — Amortization expense (0.3) (0.6) Experience adjustment (0.2) (0.4) Balance, end of period $ 14.9 $ 14.9 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Effects of reinsurance on premiums and benefits | The effects of reinsurance on net premiums written and contract deposits; net premiums and contract charges earned; and benefits, claims and settlement expenses were as follows: ($ in millions) Direct Ceded to Other Companies (1) Assumed Net Three months ended June 30, 2023 Net premiums written and contract deposits (2) $ 394.7 $ 17.9 $ 9.4 $ 386.2 Net premiums and contract charges earned 271.6 20.0 9.1 260.7 Benefits, claims and settlement expenses 217.5 14.3 2.0 205.2 Three months ended June 30, 2022 Net premiums written and contract deposits (2) $ 375.1 $ 16.5 $ 13.7 $ 372.3 Net premiums and contract charges earned 260.5 18.7 13.6 255.4 Benefits, claims and settlement expenses 212.4 18.5 9.5 203.4 Six months ended June 30, 2023 Net premiums written and contract deposits (2) $ 762.5 $ 34.5 $ 19.8 $ 747.8 Net premiums and contract charges earned 535.6 38.5 19.5 516.6 Benefits, claims and settlement expenses 410.4 27.0 5.0 388.4 Six months ended June 30, 2022 Net premiums written and contract deposits (2) $ 735.9 $ 31.3 $ 26.1 $ 730.7 Net premiums and contract charges earned 520.9 35.9 26.2 511.2 Benefits, claims and settlement expenses 394.0 25.7 10.3 378.6 (1) Excludes the annuity reinsurance transaction accounted for using the deposit method. (2) This measure is not based on accounting principles generally accepted in the United States of America (non-GAAP). An explanation of this non-GAAP measure is contained in the Glossary of Selected Terms included as Exhibit 99.1 in the Company's reports filed with the SEC. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summarized financial information for these segments | Summarized financial information for these segments is as follows: ($ in millions) Three Months Ended Six Months Ended 2023 2022 2023 2022 Net premiums and contract charges earned Property & Casualty $ 157.4 $ 149.9 $ 309.8 $ 300.1 Life & Retirement 37.4 36.3 75.1 72.1 Supplemental & Group Benefits 65.9 69.2 131.7 139.0 Total $ 260.7 $ 255.4 $ 516.6 $ 511.2 Net investment income Property & Casualty $ 10.6 $ 7.7 $ 14.6 $ 14.9 Life & Retirement 89.3 88.4 177.2 172.6 Supplemental & Group Benefits 9.1 9.6 18.2 16.7 Corporate & Other — — — — Intersegment eliminations (0.5) (0.5) (1.1) (1.1) Total $ 108.5 $ 105.2 $ 208.9 $ 203.1 Net income (loss) Property & Casualty $ (21.4) $ (25.4) $ (33.0) $ (16.9) Life & Retirement 17.4 23.8 31.4 39.4 Supplemental & Group Benefits 11.8 15.0 25.8 28.2 Corporate & Other (20.6) (17.6) (30.4) (34.6) Total $ (12.8) $ (4.2) $ (6.2) $ 16.1 ($ in millions) June 30, 2023 December 31, 2022 Assets Property & Casualty $ 1,077.9 $ 1,083.8 Life & Retirement 11,127.1 10,754.5 Supplemental & Group Benefits 1,350.4 1,359.3 Corporate & Other 168.2 173.4 Intersegment eliminations (51.7) (64.9) Total $ 13,671.9 $ 13,306.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table reconciles these components. ($ in millions) Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities (1) Net Reserve Remeasurements Attributable to Discount Rates (1) Net Funded Status of Benefit Plans (1) Total (1) Beginning balance, April 1, 2023 $ (356.4) $ 17.8 $ (8.8) $ (347.4) Other comprehensive income (loss) before reclassifications (48.9) 25.1 — (23.8) Amounts reclassified from AOCI (2) 11.6 — — 11.6 Net current period other comprehensive income (loss) (37.3) 25.1 — (12.2) Ending balance, June 30, 2023 $ (393.7) $ 42.9 $ (8.8) $ (359.6) Beginning balance, April 1, 2022 $ 13.0 $ (205.4) $ (10.2) $ (202.6) Other comprehensive income 9losss) before reclassifications (297.1) 168.5 — (128.6) Amounts reclassified from AOCI (3) 2.3 — — 2.3 Net current period other comprehensive income (loss) (294.8) 168.5 — (126.3) Ending balance, June 30, 2022 $ (281.8) $ (36.9) $ (10.2) $ (328.9) Beginning balance, January 1, 2023 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Other comprehensive income (loss) before reclassifications 42.4 (16.1) — 26.3 Amounts reclassified from AOCI (2) 13.5 — — 13.5 Net current period other comprehensive income (loss) 55.9 (16.1) — 39.8 Ending balance, June 30, 2023 $ (393.7) $ 42.9 $ (8.8) $ (359.6) Beginning balance, January 1, 2022 $ 347.1 $ (386.9) $ (10.2) $ (50.0) Other comprehensive income (loss) before reclassifications (633.0) 350.0 — (283.0) Amounts reclassified from AOCI (2) 4.1 — — 4.1 Net current period other comprehensive income (loss) (628.9) 350.0 — (278.9) Ending balance, June 30, 2022 $ (281.8) $ (36.9) $ (10.2) $ (328.9) (1) All amounts are net of tax. (2) The pretax amounts reclassified from AOCI, $(14.6) million and $(17.0) million, are included in Net investment gains (losses) and the related income tax benefits, $(3.1) million and $(3.6) million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2023, respectively. (3) The pretax amounts reclassified from AOCI, $(2.9) million and $(5.2) million, are included in Net investment gains (losses) and the related income tax benefits, $(0.6) million and $(1.1) million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2022, respectively. |
Supplemental Consolidated Cas_2
Supplemental Consolidated Cash and Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash and cash equivalents | ($ in millions) June 30, 2023 December 31, 2022 Cash $ 22.2 $ 42.2 Restricted cash 0.9 0.6 Total cash and restricted cash reported in the Consolidated Balance Sheets $ 23.1 $ 42.8 |
Schedule of restrictions on cash and cash equivalents | ($ in millions) June 30, 2023 December 31, 2022 Cash $ 22.2 $ 42.2 Restricted cash 0.9 0.6 Total cash and restricted cash reported in the Consolidated Balance Sheets $ 23.1 $ 42.8 |
Schedule of supplemental cash flow information | ($ in millions) Six Months Ended 2023 2022 Cash paid for: Interest $ 13.1 $ 7.1 Income taxes 10.0 5.3 |
Prior Period Consolidated Fin_2
Prior Period Consolidated Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following tables summarize the effects of adopting LDTI on our unaudited Consolidated Financial Statements. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED BALANCE SHEET (UNAUDITED) ($ in millions, except share data) December 31, 2022 Effect of the Adoption of ASU 2018-12 Reclassifications (1) December 31, 2022 As Reported As Adjusted Assets Total investments $ 6,587.6 $ — $ — $ 6,587.6 Cash 42.8 — $ — 42.8 Deferred policy acquisition costs 433.1 (102.5) $ — 330.6 Reinsurance balances receivable 506.2 (38.2) — 468.0 Deposit asset on reinsurance 2,516.6 — — 2,516.6 Intangible assets 185.2 — — 185.2 Goodwill 54.3 — — 54.3 Other assets 328.7 — — 328.7 Separate Account variable annuity assets 2,792.3 — — 2,792.3 Total assets $ 13,446.8 $ (140.7) $ — $ 13,306.1 Liabilities and Shareholders' Equity Policy liabilities Investment contract and policy reserves $ 6,968.0 $ (151.9) $ (6,816.1) $ — Future policy benefit reserves 1,718.0 1,718.0 Policyholders' account balances 5,260.6 5,260.6 Unpaid claims and claim expenses 585.1 (2.9) (18.2) 564.0 Unearned premiums 264.2 1.9 — 266.1 Total policy liabilities 7,817.3 (152.9) 144.3 7,808.7 Other policyholder funds 954.0 (0.4) (144.3) 809.3 Other liabilities 297.0 2.5 — 299.5 Short-term debt 249.0 — — 249.0 Long-term debt 249.0 — — 249.0 Separate Account variable annuity liabilities 2,792.3 — — 2,792.3 Total liabilities 12,358.6 (150.8) — 12,207.8 Preferred stock — — — — Common stock 0.1 — — 0.1 Additional paid-in capital 502.6 — — 502.6 Retained earnings 1,468.6 43.8 — 1,512.4 Accumulated other comprehensive income (loss), net of tax: Net unrealized investment losses on fixed maturity securities (356.9) (92.7) — (449.6) Net reserve remeasurements attributable to discount rates — 59.0 — 59.0 Net funded status of benefit plans (8.8) — — (8.8) Treasury stock, at cost (517.4) — — (517.4) Total shareholders’ equity 1,088.2 10.1 — 1,098.3 Total liabilities and shareholders’ equity $ 13,446.8 $ (140.7) $ — $ 13,306.1 (1) The Company has reclassified the presentation of certain information to conform to the current year's presentation. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) ($ in millions, except per share data) Three Months Ended Effect of the Adoption of ASU 2018-12 Three Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 255.8 $ (0.4) $ 255.4 Net investment income 105.2 — 105.2 Net investment losses (15.5) — (15.5) Other income 0.8 — 0.8 Total revenues 346.3 (0.4) 345.9 Benefits, losses and expenses Benefits, claims and settlement expenses 207.6 (4.2) 203.4 Interest credited 42.4 (1.0) 41.4 Operating expenses 77.3 (0.2) 77.1 DAC amortization expense 27.0 (5.5) 21.5 Intangible asset amortization expense 4.2 — 4.2 Interest expense 4.3 — 4.3 Total benefits, losses and expenses 362.8 (10.9) 351.9 Income before income taxes (16.5) 10.5 (6.0) Income tax expense (benefit) (4.0) 2.2 (1.8) Net income (loss) (12.5) 8.3 (4.2) Net income (loss) per share Basic (0.30) 0.20 (0.10) Diluted (0.30) 0.20 (0.10) Weighted average number of shares and equivalent shares Basic 41.8 — 41.8 Diluted 41.8 — 41.8 Statement of Comprehensive Income (Loss) Net income (loss) (12.5) 8.3 (4.2) Other comprehensive income (loss), net of tax: Change in net unrealized investment losses on fixed maturity securities (240.4) (54.4) (294.8) Change in net reserve remeasurements attributable to discount rates — 168.5 168.5 Change in net funded status of benefit plans — — — Other comprehensive loss (240.4) 114.1 (126.3) Comprehensive income (loss) $ (252.9) $ 122.4 $ (130.5) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) ($ in millions, except per share data) Six Months Ended Effect of the Adoption of ASU 2018-12 Six Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 511.7 $ (0.5) $ 511.2 Net investment income 203.1 — 203.1 Net investment losses (31.0) — (31.0) Other income 9.3 — 9.3 Total revenues 693.1 (0.5) 692.6 Benefits, losses and expenses Benefits, claims and settlement expenses 384.6 (6.0) 378.6 Interest credited 83.2 (2.1) 81.1 Operating expenses 154.1 (0.3) 153.8 DAC amortization expense 53.4 (9.9) 43.5 Intangible asset amortization expense 8.4 — 8.4 Interest expense 8.2 — 8.2 Total benefits, losses and expenses 691.9 (18.3) 673.6 Income before income taxes 1.2 17.8 19.0 Income tax expense (benefit) (0.8) 3.7 2.9 Net income 2.0 14.1 16.1 Net income per share Basic 0.05 0.33 0.38 Diluted 0.05 0.33 0.38 Weighted average number of shares and equivalent shares Basic 41.8 — 41.8 Diluted 42.0 — 42.0 Statement of Comprehensive Income (Loss) Net income 2.0 14.1 16.1 Other comprehensive income (loss), net of tax: Change in net unrealized investment losses on fixed maturity securities (511.1) (117.8) (628.9) Change in net reserve remeasurements attributable to discount rates — 350.0 350.0 Change in net funded status of benefit plans — — — Other comprehensive loss (511.1) 232.2 (278.9) Comprehensive income (loss) $ (509.1) $ 246.3 $ (262.8) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) ($ in millions, except per share data) Three Months Ended Effect of the Adoption of ASU 2018-12 Three Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 498.1 — 498.1 Retained earnings Beginning balance 1,525.9 27.1 1,553.0 Net income (12.5) 8.3 (4.2) Effect of adopting ASU 2018-12 (1) — — — Dividends,per share; 2022, $0.32 per share (13.5) — (13.5) Ending balance 1,499.9 35.4 1,535.3 Accumulated other comprehensive income (loss), net of tax: Beginning balance 9.8 (212.4) (202.6) Change in net unrealized investment losses on fixed maturity securities (240.4) (54.4) (294.8) Change in net reserve remeasurements attributable to discount rates — 168.5 168.5 Change in net funded status of benefit plans — — — Ending balance (230.6) (98.3) (328.9) Treasury stock, at cost Ending balance (507.4) — (507.4) Shareholders' equity at end of period $ 1,260.1 $ (62.9) $ 1,197.2 (1) See Note 1 to the Consolidated Financial Statements for information regarding ASU 2018-12. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) ($ in millions, except per share data) Six Months Ended Effect of the Adoption of ASU 2018-12 Six Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 498.1 — 498.1 Retained earnings Beginning balance 1,524.9 22.1 1,547.0 Net income 2.0 14.1 16.1 Effect of adopting ASU 2018-12 (1) — (0.8) (0.8) Dividends,per share; 2022, $0.32 per share (27.0) — (27.0) Ending balance 1,499.9 35.4 1,535.3 Accumulated other comprehensive income (loss), net of tax: Beginning balance 280.5 (330.5) (50.0) Change in net unrealized investment losses on fixed maturity securities (511.1) (117.8) (628.9) Change in net reserve remeasurements attributable to discount rates — 350.0 350.0 Change in net funded status of benefit plans — — — Ending balance (230.6) (98.3) (328.9) Treasury stock, at cost Ending balance (507.4) — (507.4) Shareholders' equity at end of period $ 1,260.1 $ (62.9) $ 1,197.2 (1) See Note 1 to the Consolidated Financial Statements for information regarding ASU 2018-12. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) ($ in millions) Six Months Ended Effect of the Adoption of ASU 2018-12 Six Months Ended June 30, 2022 June 30, 2022 As Reported As Adjusted Cash flows - operating activities Net income $ 2.0 $ 14.1 $ 16.1 Adjustments to reconcile net income to net cash provided by operating activities: Net investment losses 31.0 — 31.0 Depreciation and intangible asset amortization 7.9 — 7.9 Share-based compensation expense 4.4 — 4.4 Loss from EMA investments, net of dividends or distributions (3.8) — (3.8) Changes in: Insurance liabilities 411.8 (136.6) 275.2 Amounts due under reinsurance agreements (344.3) 33.9 (310.4) Income tax liabilities (6.3) 99.3 93.0 Other operating assets and liabilities (25.8) (10.4) (36.2) Other, net 3.1 (0.3) 2.8 Net cash provided by operating activities 80.0 — 80.0 Cash flows - investing activities Net cash used in investing activities (296.1) — (296.1) Cash flows - financing activities Net cash provided by financing activities 132.5 — 132.5 Net decrease in cash (83.6) — (83.6) Cash at beginning of period 133.7 — 133.7 Cash at end of period $ 50.1 $ — $ 50.1 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments (segments) | 4 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in LFPB due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | $ 1,740.9 | $ 1,718 | |||
Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | |||||
Whole Life | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 289.4 | 278.4 | $ 317.7 | $ 330.6 | |
Changes in cash flow assumptions | $ 0 | 0 | 5.2 | 2.8 | |
Less: Reinsurance recoverable | (63.1) | (63.1) | (0.5) | (0.1) | |
Less: Change in discount rate assumptions | (0.2) | ||||
Net liability for future policy benefits at June 30, 2023 | 226.3 | 216.4 | 317.2 | 330.3 | |
Whole Life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 218.7 | ||||
Whole Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 111.5 | ||||
Whole Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0.4 | ||||
Term Life | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 120.3 | 112.2 | 117.6 | 120.5 | |
Changes in cash flow assumptions | (5.6) | (5.6) | 21.5 | (4.8) | |
Less: Reinsurance recoverable | (16.7) | (15.3) | (5.5) | (5.4) | |
Less: Change in discount rate assumptions | (0.9) | ||||
Net liability for future policy benefits at June 30, 2023 | 103.6 | 97.1 | 112.1 | 114.2 | |
Term Life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 93.2 | ||||
Term Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 27.3 | ||||
Term Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Experience Life | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 803.5 | 799.3 | 1,098.1 | 1,191.3 | |
Changes in cash flow assumptions | 0 | 0 | 11 | (3.6) | |
Less: Reinsurance recoverable | (0.7) | (0.8) | (1.1) | (1.3) | |
Less: Change in discount rate assumptions | (0.7) | ||||
Net liability for future policy benefits at June 30, 2023 | 802.8 | 798.5 | 1,097 | 1,189.3 | |
Experience Life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 758.3 | ||||
Experience Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 433 | ||||
Experience Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Limited Pay Whole Life | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 53.7 | 49.6 | 73.2 | 69.5 | |
Changes in cash flow assumptions | 0 | 0 | 2 | 0 | |
Less: Reinsurance recoverable | (0.2) | 0 | (0.2) | (0.1) | |
Less: Change in discount rate assumptions | (0.1) | ||||
Net liability for future policy benefits at June 30, 2023 | 53.5 | 49.6 | 73 | 69.3 | |
Limited Pay Whole Life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 51.3 | ||||
Limited Pay Whole Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 18.2 | ||||
Limited Pay Whole Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Supplemental health | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 254.5 | 264.4 | 359.1 | 415.5 | |
Changes in cash flow assumptions | 0 | 0 | 13.8 | (3) | |
Less: Reinsurance recoverable | (3.9) | (3.4) | 0 | 0 | |
Less: Change in discount rate assumptions | 0 | ||||
Net liability for future policy benefits at June 30, 2023 | 250.6 | 261 | 359.1 | 415.5 | |
Supplemental health | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 392.5 | ||||
Supplemental health | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 23 | ||||
Supplemental health | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Cancer | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at June 30, 2023 | 97.3 | 101.8 | 140.8 | 163.5 | |
Accident | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at June 30, 2023 | 21.5 | 21.8 | 28.7 | 31.2 | |
Disability | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at June 30, 2023 | 22.9 | 23.1 | 29.3 | 32 | |
Other | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at June 30, 2023 | 108.9 | 114.3 | 160.3 | 188.8 | |
SPIA (life contingent) | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 103.6 | 103.3 | 124.7 | 136.5 | |
Changes in cash flow assumptions | $ 0 | 0 | 0 | 0 | |
Less: Reinsurance recoverable | (3.5) | (3.2) | 0 | 0 | |
Less: Change in discount rate assumptions | 0 | ||||
Net liability for future policy benefits at June 30, 2023 | $ 100.1 | $ 100.1 | $ 124.7 | 136.5 | |
SPIA (life contingent) | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for future policy benefits | 115.9 | ||||
SPIA (life contingent) | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 20.6 | ||||
SPIA (life contingent) | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | $ 0 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in DAC due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ 332.9 | $ 330.6 | |||
Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 21.6 | $ 21.2 | 20.9 | $ 19.1 | $ 17.8 |
Term Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 31.4 | 30.7 | 30 | 27.5 | 25.6 |
Experience Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 5.7 | 5.8 | 5.8 | 6 | 6.2 |
Limited Pay Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 7 | 6.8 | 6.7 | 5.6 | 4.4 |
Indexed Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 16.1 | 15.7 | 15.4 | 13.7 | 12.9 |
Supplemental health | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 7 | 6.7 | 6.2 | 4.9 | 4.3 |
Total Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ 217.2 | $ 219.7 | 221.1 | $ 223.3 | 223.1 |
Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 433.1 | ||||
Previously Reported | Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 17.8 | ||||
Previously Reported | Term Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 25.6 | ||||
Previously Reported | Experience Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 2.6 | ||||
Previously Reported | Limited Pay Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 4.4 | ||||
Previously Reported | Indexed Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 11.3 | ||||
Previously Reported | Supplemental health | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 4.3 | ||||
Previously Reported | Total Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 137.7 | ||||
Effect of the Adoption of ASU 2018-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ (102.5) | ||||
Effect of the Adoption of ASU 2018-12 | Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Term Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Experience Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 3.6 | ||||
Effect of the Adoption of ASU 2018-12 | Limited Pay Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Indexed Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 1.6 | ||||
Effect of the Adoption of ASU 2018-12 | Supplemental health | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Total Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ 85.4 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in MRBs due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Market risk benefit | $ (3.6) | $ 1.3 | $ 0.2 | $ 4.6 | $ 4 | $ 4.8 | $ 8.6 |
Less: Reinsurance recoverable | 0 | ||||||
Market risk benefits | $ 28.1 | $ 48.9 | 8.6 | ||||
Previously Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Market risk benefit | 0.1 | ||||||
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Market risk benefit | 6.8 | ||||||
Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Market risk benefit | 1.7 | ||||||
Total adjustment for the difference between carrying amount and fair value | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Market risk benefit | $ 8.5 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in the Statement of Equity due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ 1,101.9 | $ 1,098.3 | $ 1,197.2 | ||||
AOCI | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (359.6) | $ (347.4) | (399.4) | (328.9) | $ (202.6) | $ (50) | |
AOCI | Liability for future policy benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ (496.3) | ||||||
AOCI | Deferred policy acquisition costs | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 71.1 | ||||||
AOCI | Deferred sales inducements | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 0 | ||||||
AOCI | Market risk benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (1.3) | ||||||
AOCI | Revision of Prior Period, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (426.5) | ||||||
Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ 1,478.6 | $ 1,505.2 | $ 1,512.4 | $ 1,535.3 | $ 1,553 | $ 1,547 | |
Retained earnings | Liability for future policy benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (0.2) | ||||||
Retained earnings | Deferred policy acquisition costs | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 0 | ||||||
Retained earnings | Deferred sales inducements | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 0 | ||||||
Retained earnings | Market risk benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (5.4) | ||||||
Retained earnings | Revision of Prior Period, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ (5.6) |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Investment Income | ||||
Total net investment income | $ 108.5 | $ 105.2 | $ 208.9 | $ 203.1 |
Investment Portfolio | ||||
Net Investment Income | ||||
Investment expenses | (2.6) | (2.5) | (6.2) | (5.1) |
Total net investment income | 82.5 | 79.4 | 157.2 | 152.4 |
Deposit Asset on Reinsurance | ||||
Net Investment Income | ||||
Total net investment income | 26 | 25.8 | 51.7 | 50.7 |
Fixed maturity securities | Investment Portfolio | ||||
Net Investment Income | ||||
Net investment income | 65.2 | 62 | 132.9 | 120.6 |
Equity securities | Investment Portfolio | ||||
Net Investment Income | ||||
Net investment income | 0.7 | 4 | 3.4 | 5.3 |
Limited partnership interests | Investment Portfolio | ||||
Net Investment Income | ||||
Net investment income | 15.7 | 13.2 | 20.1 | 26.2 |
Short-term and other investments | Investment Portfolio | ||||
Net Investment Income | ||||
Net investment income | $ 3.5 | $ 2.7 | $ 7 | $ 5.4 |
Investments - Net Investment Lo
Investments - Net Investment Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Gain (Loss) on Securities | ||||
Net investment losses | $ (17.4) | $ (15.5) | $ (21.3) | $ (31) |
Fixed maturity securities | ||||
Gain (Loss) on Securities | ||||
Net investment losses | (14.7) | (2.9) | (17.1) | (5.2) |
Equity securities | ||||
Gain (Loss) on Securities | ||||
Net investment losses | (3.5) | (12.6) | (4.5) | (28.1) |
Short-term investments and other | ||||
Gain (Loss) on Securities | ||||
Net investment losses | $ 0.8 | $ 0 | $ 0.3 | $ 2.3 |
Investments - Net Investment Ga
Investments - Net Investment Gains (Losses) by Transaction Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Credit loss impairments | $ (0.5) | $ (1.3) | $ (0.5) | $ (2.2) |
Intent-to-sell impairments | (6.1) | (0.5) | (6.1) | (1.4) |
Total impairments | (6.6) | (1.8) | (6.6) | (3.6) |
Sales and other, net | (19.3) | (1.1) | (21.7) | 0 |
Change in fair value - equity securities | 7.7 | (12.6) | 6.7 | (29.7) |
Change in fair value and gains (losses) realized on settlements - derivatives | 0.8 | 0 | 0.3 | 2.3 |
Net investment losses | $ (17.4) | $ (15.5) | $ (21.3) | $ (31) |
Investments- Allowance for Cred
Investments- Allowance for Credit Loss Impairments on Fixed Maturity Securities (Details) - Fixed maturity securities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | ||||
Beginning balance | $ 1.2 | $ 8.3 | $ 1.2 | $ 7.7 |
Credit losses on fixed maturity securities for which credit losses were not previously reported | 0.5 | 0 | 0.5 | 0 |
Net increase related to credit losses previously reported | 0 | 1.3 | 0 | 2.2 |
Reduction of credit allowances related to sales | 0 | 0 | 0 | 0 |
Write-offs | (0.5) | (0.1) | (0.5) | (0.4) |
Ending balance | $ 1.2 | $ 9.5 | $ 1.2 | $ 9.5 |
Investments - Summary of Fair V
Investments - Summary of Fair Value and Amortized Costs (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Amortized Cost, net | $ 5,712.7 | $ 5,756.9 |
Fair Value | 5,211.9 | 5,185 |
Mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 650.4 | 638.2 |
Gross Unrealized Gains | 0.8 | 1.3 |
Gross Unrealized Losses | 68.1 | 69.1 |
Fair Value | 583.1 | 570.4 |
Other, including U.S. Treasury securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 432.4 | 410 |
Gross Unrealized Gains | 0.3 | 0.5 |
Gross Unrealized Losses | 63.6 | 67.8 |
Fair Value | 369.1 | 342.7 |
Municipal bonds | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 1,342.3 | 1,380.9 |
Gross Unrealized Gains | 20.2 | 16.9 |
Gross Unrealized Losses | 110 | 128.1 |
Fair Value | 1,252.5 | 1,269.7 |
Foreign government bonds | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 26.1 | 35.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1.3 | 1.6 |
Fair Value | 24.8 | 33.5 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 2,053.8 | 2,161.2 |
Gross Unrealized Gains | 12.6 | 12.7 |
Gross Unrealized Losses | 238 | 272.2 |
Fair Value | 1,828.4 | 1,901.7 |
Other asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 1,207.7 | 1,131.5 |
Gross Unrealized Gains | 2.7 | 3.6 |
Gross Unrealized Losses | 56.4 | 68.1 |
Fair Value | 1,154 | 1,067 |
Total | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 5,712.7 | 5,756.9 |
Gross Unrealized Gains | 36.6 | 35 |
Gross Unrealized Losses | 537.4 | 606.9 |
Fair Value | 5,211.9 | 5,185 |
FNMA | ||
Schedule of Investments [Line Items] | ||
Fair Value | 330.3 | 330.8 |
FHLMC | ||
Schedule of Investments [Line Items] | ||
Fair Value | 293.2 | 273.3 |
GNMA | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ 82.4 | $ 86.2 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | ||
Investment grade rating | 97.20% | |
Reverse repurchase agreement, cash to value percentage | 95% | |
Securities sold under agreements to repurchase | $ 0.2 | $ 70.2 |
Fair Value | 5,211.9 | 5,185 |
FHLB funding agreements | 889.5 | 792.5 |
FHLB of Chicago | ||
Schedule of Investments [Line Items] | ||
Fair Value | 961.6 | 860.4 |
Governmental Agencies as Required by Law in Various States | ||
Schedule of Investments [Line Items] | ||
Fair Value | 28.8 | 28.6 |
Fair Value | ||
Schedule of Investments [Line Items] | ||
Securities sold under agreements to repurchase | $ 0.4 | $ 73.3 |
Investment Grade | ||
Schedule of Investments [Line Items] | ||
Decrease in credit spread (percent) | 0.12% | |
Increase in total returns (percent) | 3.23% | |
Decrease to Bloomberg Barclays Index Yield-To-Worst (percent) | 0.06% | |
Bloomberg Barclays Index Yield-to-Worst | 5.48% | |
High Yield | ||
Schedule of Investments [Line Items] | ||
Decrease in credit spread (percent) | 0.64% | |
Increase in total returns (percent) | 5.42% | |
Decrease to Bloomberg Barclays Index Yield-To-Worst (percent) | 0.46% | |
Bloomberg Barclays Index Yield-to-Worst | 8.50% | |
10-year U.S. Treasury | ||
Schedule of Investments [Line Items] | ||
Decrease in interest rates | 0.03% | |
Federal interest rate on securities (percent) | 3.84% | 3.87% |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses (Details) $ in Millions | Jun. 30, 2023 USD ($) | Jun. 30, 2023 security | Jun. 30, 2023 | Jun. 30, 2023 position | Dec. 31, 2022 USD ($) | Dec. 31, 2022 security | Dec. 31, 2022 | Dec. 31, 2022 position |
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Number of positions with a gross unrealized loss, 12 Months or Less (security) | security | 742 | 2,515 | ||||||
Number of positions with a gross unrealized loss, more than 12 months (security) | 2,227 | 2,227 | 587 | 587 | ||||
Number of positions with a gross unrealized loss, Total (security) | security | 2,969 | 3,102 | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, 12 Months or Less (percent) | 20.80% | 68.20% | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, more than 12 months (percent) | 59.30% | 14.20% | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, Total (percent) | 80.10% | 82.40% | ||||||
Total | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | $ 1,085.4 | $ 3,533.7 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 3,092.4 | 734.2 | ||||||
Fixed maturity securities, Fair Value, Total | 4,177.8 | 4,267.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 44.6 | 461.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 492.8 | 145.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 537.4 | 606.9 | ||||||
Mortgage-backed securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 211.9 | 458.3 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 327.6 | 52.6 | ||||||
Fixed maturity securities, Fair Value, Total | 539.5 | 510.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 12.1 | 54.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 56 | 14.7 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 68.1 | 69.1 | ||||||
Other | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 147.6 | 242.7 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 203.8 | 65.8 | ||||||
Fixed maturity securities, Fair Value, Total | 351.4 | 308.5 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 6.6 | 34.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 57 | 33.7 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 63.6 | 67.8 | ||||||
Municipal bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 302.8 | 911.6 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 634.9 | 42.2 | ||||||
Fixed maturity securities, Fair Value, Total | 937.7 | 953.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 8.9 | 113.7 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 101.1 | 14.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 110 | 128.1 | ||||||
Foreign government bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 21.8 | 32.7 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 2.9 | 0.4 | ||||||
Fixed maturity securities, Fair Value, Total | 24.7 | 33.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0.7 | 1.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 0.6 | 0.2 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 1.3 | 1.6 | ||||||
Corporate bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 186.5 | 1,345 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 1,119.2 | 148.9 | ||||||
Fixed maturity securities, Fair Value, Total | 1,305.7 | 1,493.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 11 | 221.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 227 | 51.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 238 | 272.2 | ||||||
Other asset-backed securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 214.8 | 543.4 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 804 | 424.3 | ||||||
Fixed maturity securities, Fair Value, Total | 1,018.8 | 967.7 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 5.3 | 37.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 51.1 | 31 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | $ 56.4 | $ 68.1 |
Investments - Fixed Maturity Se
Investments - Fixed Maturity Securities in Continuous Loss Position (Details) | Jun. 30, 2023 security | Jun. 30, 2023 position | Dec. 31, 2022 security | Dec. 31, 2022 position |
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 2,227 | 2,227 | 587 | 587 |
AAA | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 229 | 67 | ||
AA | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 835 | 217 | ||
A | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 399 | 94 | ||
BBB | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 436 | 93 | ||
BB | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 183 | 68 | ||
B | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 85 | 31 | ||
CCC or lower | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 5 | 2 | ||
Not rated | ||||
Gain (Loss) on Securities | ||||
Number of positions with a gross unrealized loss (Security) | 55 | 15 |
Investments - Distribution of F
Investments - Distribution of Fixed Maturity Securities by Expected Maturity (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Percent of Total Fair Value | ||
Due in 1 year Or less (percent) | 4.90% | 4.40% |
Due after 1 year through 5 years (percent) | 26.70% | 26.30% |
Due after 5 years through 10 years (percent) | 27.50% | 27.90% |
Due after 10 years through 20 years (percent) | 24.60% | 25% |
Due after 20 years (percent) | 16.30% | 16.40% |
Total (percent) | 100% | 100% |
Fair Value | ||
Due in 1 year or less | $ 253.5 | |
Due after 1 year through 5 years | 1,390.7 | |
Due after 5 years through 10 years | 1,431.8 | |
Due after 10 years through 20 years | 1,286.9 | |
Due after 20 years | 849 | |
Total | 5,211.9 | $ 5,185 |
Amortized Cost, net | ||
Due in 1 year or less | 261.6 | |
Due after 1 year through 5 years | 1,448 | |
Due after 5 years through 10 years | 1,520.5 | |
Due after 10 years through 20 years | 1,444.5 | |
Due after 20 years | 1,038.1 | |
Amortized Cost, net | $ 5,712.7 | $ 5,756.9 |
Average option-adjusted duration, in years | 6 years 2 months 12 days | 6 years 4 months 24 days |
Investments - Sales of Fixed Ma
Investments - Sales of Fixed Maturity and Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fixed maturity securities | ||||
Proceeds received | $ 143.5 | $ 197 | $ 206.2 | $ 365.3 |
Gross gains realized | 0.3 | 1.2 | 0.6 | 3.6 |
Gross losses realized | (8.4) | (2.3) | (11.1) | (5.2) |
Equity securities | ||||
Proceeds received | 9.8 | 0 | 9.8 | 5.8 |
Gross gains realized | 0 | 0 | 0 | 1.7 |
Gross losses realized | $ (11.3) | $ 0 | $ (11.3) | $ (0.1) |
Investments - Reconciliation of
Investments - Reconciliation of Net Unrealized Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | $ 1,098.3 | |||
Ending balance | $ 1,101.9 | $ 1,197.2 | 1,101.9 | $ 1,197.2 |
Net unrealized investment gains (losses) on securities | ||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | (356.4) | 13 | (449.6) | 347.1 |
Ending balance | (393.7) | (281.8) | (393.7) | (281.8) |
Net unrealized investment gains (losses) on securities | Fixed maturity securities | ||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | (356.4) | 13 | (449.6) | 347.1 |
Change in net unrealized investment gains (losses) on fixed maturity securities | (48.9) | (297.1) | 42.4 | (633) |
Reclassification of net investment losses on fixed maturity securities to net income | 11.6 | 2.3 | 13.5 | 4.1 |
Ending balance | $ (393.7) | $ (281.8) | $ (393.7) | $ (281.8) |
Investments - Carrying Amount o
Investments - Carrying Amount of Equity Method Limited Partnership Interests (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments | ||
Limited partnership interests | $ 1,073.8 | $ 983.7 |
Commercial mortgage loan funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 642.7 | 593.6 |
Private equity funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 80.6 | 76.3 |
Infrastructure equity funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 62.8 | 60 |
Real estate equity funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 86.8 | 71.3 |
Infrastructure debt funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 72.4 | 72 |
Other funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | $ 128.5 | $ 110.5 |
Investments - Offsetting of Ass
Investments - Offsetting of Assets and Liabilities (Details) - Free-standing derivatives - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Asset derivatives: | ||
Gross Amounts | $ 12.7 | $ 6.8 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheets | 12.7 | 6.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 12 | 5.9 |
Net Amount | $ 0.7 | |
Net Amount | $ 0.9 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Percentage of level 3 invested assets in total investment portfolio | 8.80% | 8.80% | ||
Net gains/(losses) included in net income | $ 0 | $ (1,300,000) | $ 0 | $ (2,300,000) |
Net investment gains included in net income related to financial liabilities | $ 3,400,000 | $ 2,000,000 | $ 2,500,000 | $ 7,600,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Instruments Measured and Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Total fixed maturity securities | $ 5,211.9 | $ 5,185 |
Equity securities | 85.8 | 99.6 |
Mortgage-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 583.1 | 570.4 |
Other, including U.S. Treasury securities | ||
Financial Assets | ||
Total fixed maturity securities | 369.1 | 342.7 |
Municipal bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,252.5 | 1,269.7 |
Foreign government bonds | ||
Financial Assets | ||
Total fixed maturity securities | 24.8 | 33.5 |
Corporate bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,828.4 | 1,901.7 |
Other asset-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 1,154 | 1,067 |
Carrying Amount | Recurring | ||
Financial Assets | ||
Total fixed maturity securities | 5,211.9 | 5,185 |
Equity securities | 85.8 | 99.6 |
Short-term investments | 74 | 109.4 |
Other investments | 45.8 | 38.6 |
Totals | 5,417.5 | 5,432.6 |
Separate Account variable annuity assets | 3,098.5 | 2,792.3 |
Financial Liabilities | 86.2 | 92.5 |
Carrying Amount | Recurring | Mortgage-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 583.1 | 570.4 |
Carrying Amount | Recurring | Other, including U.S. Treasury securities | ||
Financial Assets | ||
Total fixed maturity securities | 369 | 342.6 |
Carrying Amount | Recurring | Municipal bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,252.6 | 1,269.7 |
Carrying Amount | Recurring | Foreign government bonds | ||
Financial Assets | ||
Total fixed maturity securities | 24.8 | 33.6 |
Carrying Amount | Recurring | Corporate bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,828.4 | 1,901.7 |
Carrying Amount | Recurring | Other asset-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 1,154 | 1,067 |
Fair Value | Recurring | ||
Financial Assets | ||
Total fixed maturity securities | 5,211.9 | 5,185 |
Equity securities | 85.8 | 99.6 |
Short-term investments | 74 | 109.4 |
Other investments | 45.8 | 38.6 |
Totals | 5,417.5 | 5,432.6 |
Separate Account variable annuity assets | 3,098.5 | 2,792.3 |
Financial Liabilities | 86.2 | 92.5 |
Fair Value | Recurring | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 57.8 | 36.8 |
Equity securities | 18 | 23.3 |
Short-term investments | 74 | 109.4 |
Other investments | 0 | 0 |
Totals | 149.8 | 169.5 |
Separate Account variable annuity assets | 3,098.5 | 2,792.3 |
Financial Liabilities | 0 | 0 |
Fair Value | Recurring | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 4,677.3 | 4,724.9 |
Equity securities | 65.8 | 74.3 |
Short-term investments | 0 | 0 |
Other investments | 45.8 | 38.6 |
Totals | 4,788.9 | 4,837.8 |
Separate Account variable annuity assets | 0 | 0 |
Financial Liabilities | 2.6 | 1.2 |
Fair Value | Recurring | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 476.8 | 423.3 |
Equity securities | 2 | 2 |
Short-term investments | 0 | 0 |
Other investments | 0 | 0 |
Totals | 478.8 | 425.3 |
Separate Account variable annuity assets | 0 | 0 |
Financial Liabilities | 83.6 | 91.3 |
Fair Value | Recurring | Mortgage-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 583.1 | 570.4 |
Fair Value | Recurring | Mortgage-backed securities | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 0 | 0 |
Fair Value | Recurring | Mortgage-backed securities | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 580.6 | 567.8 |
Fair Value | Recurring | Mortgage-backed securities | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 2.5 | 2.6 |
Fair Value | Recurring | Other, including U.S. Treasury securities | ||
Financial Assets | ||
Total fixed maturity securities | 369 | 342.6 |
Fair Value | Recurring | Other, including U.S. Treasury securities | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 44.8 | 24.6 |
Fair Value | Recurring | Other, including U.S. Treasury securities | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 324.2 | 318 |
Fair Value | Recurring | Other, including U.S. Treasury securities | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 0 | 0 |
Fair Value | Recurring | Municipal bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,252.6 | 1,269.7 |
Fair Value | Recurring | Municipal bonds | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 0 | 0 |
Fair Value | Recurring | Municipal bonds | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 1,188.7 | 1,215.3 |
Fair Value | Recurring | Municipal bonds | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 63.9 | 54.4 |
Fair Value | Recurring | Foreign government bonds | ||
Financial Assets | ||
Total fixed maturity securities | 24.8 | 33.6 |
Fair Value | Recurring | Foreign government bonds | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 0 | 0 |
Fair Value | Recurring | Foreign government bonds | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 24.8 | 33.6 |
Fair Value | Recurring | Foreign government bonds | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 0 | 0 |
Fair Value | Recurring | Corporate bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,828.4 | 1,901.7 |
Fair Value | Recurring | Corporate bonds | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 13 | 12.2 |
Fair Value | Recurring | Corporate bonds | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 1,503.9 | 1,628.2 |
Fair Value | Recurring | Corporate bonds | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 311.5 | 261.3 |
Fair Value | Recurring | Other asset-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 1,154 | 1,067 |
Fair Value | Recurring | Other asset-backed securities | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 0 | 0 |
Fair Value | Recurring | Other asset-backed securities | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 1,055.1 | 962 |
Fair Value | Recurring | Other asset-backed securities | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | $ 98.9 | $ 105 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Rollforward of Instruments Measured on Recurring Basis (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financial Assets | ||||
Beginning balance | $ 446,000,000 | $ 371,200,000 | $ 425,300,000 | $ 371,400,000 |
Transfers into Level 3 | 30,600,000 | 73,500,000 | 36,900,000 | 145,700,000 |
Transfers out of Level 3 | 0 | 0 | 0 | (8,000,000) |
Total gains or losses | ||||
Net gains/losses included in net income | 0 | (1,300,000) | 0 | (2,300,000) |
Net unrealized gains/losses included in OCI | (3,700,000) | (10,900,000) | (1,800,000) | (24,900,000) |
Purchases | 16,100,000 | 4,900,000 | 35,400,000 | 4,900,000 |
Issuances | 0 | 0 | 0 | 0 |
Sales | (5,100,000) | (2,100,000) | (7,700,000) | (2,100,000) |
Settlements | 0 | 0 | 0 | 0 |
Paydowns, maturities and distributions | (5,100,000) | (15,300,000) | (9,300,000) | (64,700,000) |
Ending balance | 478,800,000 | 420,000,000 | 478,800,000 | 420,000,000 |
Financial Liabilities | ||||
Beginning balance | 91,200,000 | 103,100,000 | 91,300,000 | 111,400,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Total gains or losses | ||||
Net gains/losses included in net income | (3,400,000) | (2,000,000) | (2,500,000) | (7,600,000) |
Net unrealized gains/losses included in OCI | (900,000) | (2,000,000) | (600,000) | (2,400,000) |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 2,200,000 | 1,200,000 | 4,300,000 | 2,100,000 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Paydowns, maturities and distributions | (5,500,000) | (2,500,000) | (8,900,000) | (5,700,000) |
Ending balance | 83,600,000 | 97,800,000 | 83,600,000 | 97,800,000 |
Municipal bonds | ||||
Financial Assets | ||||
Beginning balance | 55,400,000 | 54,100,000 | 54,400,000 | 60,800,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | (3,200,000) |
Total gains or losses | ||||
Net gains/losses included in net income | 0 | 0 | 0 | 0 |
Net unrealized gains/losses included in OCI | (800,000) | (2,800,000) | 500,000 | (6,200,000) |
Purchases | 9,500,000 | 0 | 9,500,000 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Paydowns, maturities and distributions | (200,000) | (300,000) | (500,000) | (400,000) |
Ending balance | 63,900,000 | 51,000,000 | 63,900,000 | 51,000,000 |
Corporate bonds | ||||
Financial Assets | ||||
Beginning balance | 284,000,000 | 226,000,000 | 261,300,000 | 210,300,000 |
Transfers into Level 3 | 30,200,000 | 56,000,000 | 36,100,000 | 123,400,000 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Total gains or losses | ||||
Net gains/losses included in net income | 0 | 0 | 0 | 0 |
Net unrealized gains/losses included in OCI | (2,200,000) | (4,900,000) | (1,200,000) | (11,300,000) |
Purchases | 6,600,000 | 4,900,000 | 25,600,000 | 4,900,000 |
Issuances | 0 | 0 | 0 | 0 |
Sales | (5,100,000) | 0 | (7,700,000) | 0 |
Settlements | 0 | 0 | 0 | 0 |
Paydowns, maturities and distributions | (2,000,000) | (11,500,000) | (2,600,000) | (56,800,000) |
Ending balance | 311,500,000 | 270,500,000 | 311,500,000 | 270,500,000 |
Mortgage Backed and Other Asset- Backed Securities | ||||
Financial Assets | ||||
Beginning balance | 104,600,000 | 89,800,000 | 107,600,000 | 98,900,000 |
Transfers into Level 3 | 400,000 | 17,500,000 | 800,000 | 22,300,000 |
Transfers out of Level 3 | 0 | 0 | 0 | (4,800,000) |
Total gains or losses | ||||
Net gains/losses included in net income | 0 | (1,400,000) | 0 | (2,300,000) |
Net unrealized gains/losses included in OCI | (700,000) | (3,200,000) | (1,100,000) | (7,400,000) |
Purchases | 0 | 0 | 300,000 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | (2,100,000) | 0 | (2,100,000) |
Settlements | 0 | 0 | 0 | 0 |
Paydowns, maturities and distributions | (2,900,000) | (3,500,000) | (6,200,000) | (7,500,000) |
Ending balance | 101,400,000 | 97,100,000 | 101,400,000 | 97,100,000 |
Total Fixed Maturity Securities | ||||
Financial Assets | ||||
Beginning balance | 444,000,000 | 369,900,000 | 423,300,000 | 370,000,000 |
Transfers into Level 3 | 30,600,000 | 73,500,000 | 36,900,000 | 145,700,000 |
Transfers out of Level 3 | 0 | 0 | 0 | (8,000,000) |
Total gains or losses | ||||
Net gains/losses included in net income | 0 | (1,400,000) | 0 | (2,300,000) |
Net unrealized gains/losses included in OCI | (3,700,000) | (10,900,000) | (1,800,000) | (24,900,000) |
Purchases | 16,100,000 | 4,900,000 | 35,400,000 | 4,900,000 |
Issuances | 0 | 0 | 0 | 0 |
Sales | (5,100,000) | (2,100,000) | (7,700,000) | (2,100,000) |
Settlements | 0 | 0 | 0 | 0 |
Paydowns, maturities and distributions | (5,100,000) | (15,300,000) | (9,300,000) | (64,700,000) |
Ending balance | 476,800,000 | 418,600,000 | 476,800,000 | 418,600,000 |
Equity securities | ||||
Financial Assets | ||||
Beginning balance | 2,000,000 | 1,300,000 | 2,000,000 | 1,400,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Total gains or losses | ||||
Net gains/losses included in net income | 0 | 100,000 | 0 | 0 |
Net unrealized gains/losses included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Paydowns, maturities and distributions | 0 | 0 | 0 | 0 |
Ending balance | $ 2,000,000 | $ 1,400,000 | $ 2,000,000 | $ 1,400,000 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | $ 5,211.9 | $ 5,185 | |||||
Equity securities at fair value | 85.8 | 99.6 | |||||
Net MRBs | (3.6) | $ 1.3 | 0.2 | $ 4.6 | $ 4 | $ 4.8 | $ 8.6 |
Fair Value | Recurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | 5,211.9 | 5,185 | |||||
Equity securities at fair value | 85.8 | 99.6 | |||||
Municipal bonds | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | 1,252.5 | 1,269.7 | |||||
Municipal bonds | Fair Value | Recurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | 1,252.6 | 1,269.7 | |||||
Corporate bonds | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | 1,828.4 | 1,901.7 | |||||
Corporate bonds | Fair Value | Recurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | 1,828.4 | 1,901.7 | |||||
Level 3 | Fair Value | Recurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | 476.8 | 423.3 | |||||
Equity securities at fair value | 2 | 2 | |||||
Derivatives embedded in fixed indexed annuity products | 87.2 | ||||||
Net MRBs | (3.6) | ||||||
Level 3 | Municipal bonds | Fair Value | Recurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | $ 63.9 | 54.4 | |||||
Level 3 | Municipal bonds | discounted cash flow | option adjusted spread | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.0308 | ||||||
Level 3 | Corporate bonds | Fair Value | Recurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | $ 311.5 | $ 261.3 | |||||
Level 3 | Corporate bonds | discounted cash flow | option adjusted spread | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.0241 | ||||||
Level 3 | Corporate bonds | discounted cash flow | exit cap | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 6.2 | ||||||
Level 3 | Corporate bonds | vendor priced | vendor priced | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 79.64 | ||||||
Level 3 | Corporate bonds | market comparable | EV / Fwd EBITDA (x) | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 5.92 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | Fair Value | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Fair Value | $ 101.4 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | LIBOR | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.023 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | discount margin | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.395 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | PDI spread | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.055 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | SBL spread | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.045 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | CPR | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.200 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | default rate annual | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.040 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | recovery | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.650 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | I spread | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.0175 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | N spread | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.0463 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | T Spread | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.0226 | ||||||
Level 3 | Mortgage-backed and other asset-backed securities | market comparable | median price | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 81.34 | ||||||
Minimum | Level 3 | discounted cash flow | option budget | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.009 | ||||||
Minimum | Level 3 | market comparable | price/book ExAOCI | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Equity securities, measurement input | 1.06 | ||||||
Minimum | Level 3 | black-scholes | volatility | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Equity securities, measurement input | 0.280 | ||||||
Minimum | Level 3 | black-scholes | time to exit | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Equity securities, measurement input | 0.000267 | ||||||
Minimum | Level 3 | Corporate bonds | discounted cash flow | yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.061 | ||||||
Minimum | Level 3 | Corporate bonds | discounted cash flow | discount rate | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 6.2 | ||||||
Minimum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.064 | ||||||
Minimum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | discount rate | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.160 | ||||||
Minimum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | median comparable yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.207 | ||||||
Minimum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | weighting | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.170 | ||||||
Minimum | Level 3 | Mortgage-backed and other asset-backed securities | vendor priced | haircut | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.0001 | ||||||
Maximum | Level 3 | discounted cash flow | option budget | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.038 | ||||||
Maximum | Level 3 | black-scholes | volatility | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Equity securities, measurement input | 0.440 | ||||||
Maximum | Level 3 | Corporate bonds | discounted cash flow | yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 11 | ||||||
Maximum | Level 3 | Corporate bonds | discounted cash flow | discount rate | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 10.7 | ||||||
Maximum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.065 | ||||||
Maximum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | discount rate | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.210 | ||||||
Maximum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | median comparable yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.432 | ||||||
Maximum | Level 3 | Mortgage-backed and other asset-backed securities | discounted cash flow | weighting | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.830 | ||||||
Maximum | Level 3 | Mortgage-backed and other asset-backed securities | vendor priced | haircut | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Debt securities, measurement input | 0.003 | ||||||
Weighted Average | Level 3 | discounted cash flow | lapse rate | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.054 | ||||||
Net MRBs, measurement input | 0.053 | ||||||
Weighted Average | Level 3 | discounted cash flow | mortality multiplier | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.678 | ||||||
Net MRBs, measurement input | 0.678 | ||||||
Weighted Average | Level 3 | discounted cash flow | non-performance adjustment | |||||||
Fair Value Measurement Inputs and Valuation Techniques | |||||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.050 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Financial Instrument Not Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Level 1 | ||
Investments | ||
Other investments | $ 0 | $ 0 |
Deposit asset on reinsurance | 0 | 0 |
Financial Liabilities | ||
Investment contract and future policy benefit reserves, fixed annuity contracts | 0 | 0 |
Investment contract and future policy benefit reserves, account values on life contracts | 0 | 0 |
Other policyholder funds | 0 | 0 |
Reverse repurchase agreements | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Level 2 | ||
Investments | ||
Other investments | 0 | 0 |
Deposit asset on reinsurance | 0 | 0 |
Financial Liabilities | ||
Investment contract and future policy benefit reserves, fixed annuity contracts | 0 | 0 |
Investment contract and future policy benefit reserves, account values on life contracts | 0 | 0 |
Other policyholder funds | 889.9 | 810.7 |
Reverse repurchase agreements | 0.4 | 73.3 |
Short-term debt | 0 | 0 |
Long-term debt | 236.1 | 240.5 |
Level 3 | ||
Investments | ||
Other investments | 181.8 | 170.9 |
Deposit asset on reinsurance | 2,233.6 | 2,207.2 |
Financial Liabilities | ||
Investment contract and future policy benefit reserves, fixed annuity contracts | 4,825.4 | 4,901.3 |
Investment contract and future policy benefit reserves, account values on life contracts | 110.9 | 107.7 |
Other policyholder funds | 7.3 | 52.3 |
Reverse repurchase agreements | 0 | 0 |
Short-term debt | 249 | 249 |
Long-term debt | 0 | 0 |
Carrying Amount | ||
Investments | ||
Other investments | 178.3 | 167.4 |
Deposit asset on reinsurance | 2,514.9 | 2,516.6 |
Financial Liabilities | ||
Investment contract and future policy benefit reserves, fixed annuity contracts | 4,925.1 | 4,988.5 |
Investment contract and future policy benefit reserves, account values on life contracts | 114.9 | 111.9 |
Other policyholder funds | 897.2 | 863 |
Reverse repurchase agreements | 0.2 | 70.2 |
Short-term debt | 249 | 249 |
Long-term debt | 249.1 | 249 |
Fair Value | ||
Investments | ||
Other investments | 181.8 | 170.9 |
Deposit asset on reinsurance | 2,233.6 | 2,207.2 |
Financial Liabilities | ||
Investment contract and future policy benefit reserves, fixed annuity contracts | 4,825.4 | 4,901.3 |
Investment contract and future policy benefit reserves, account values on life contracts | 110.9 | 107.7 |
Other policyholder funds | 897.2 | 863 |
Reverse repurchase agreements | 0.4 | 73.3 |
Short-term debt | 249 | 249 |
Long-term debt | $ 236.1 | $ 240.5 |
Short-Duration Insurance Cont_3
Short-Duration Insurance Contracts - Summary of Reinsurance Reserve Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information | ||||
Beginning gross reserves | $ 564 | |||
Claims and claim expense payments for claims occurring during: | ||||
Ending gross reserves | $ 597.8 | 597.8 | ||
Property & Casualty | ||||
Segment Reporting Information | ||||
Beginning gross reserves | 397.8 | $ 356.2 | 388.7 | $ 362.4 |
Less: reinsurance recoverables | 101.3 | 108 | 100.8 | 110.3 |
Net reserves, beginning of period | 296.5 | 248.2 | 287.9 | 252.1 |
Incurred claims and claim expenses: | ||||
Claims occurring in the current period | 152 | 144.1 | 280.8 | 252.4 |
Increase (decrease) in estimated reserves for claims occurring in prior periods | 0 | 6 | 0 | 6 |
Total claims and claim expenses incurred | 152 | 150.1 | 280.8 | 258.4 |
Claims and claim expense payments for claims occurring during: | ||||
Current period | 90.2 | 84.4 | 130.8 | 118.2 |
Prior periods | 46.8 | 45.3 | 126.4 | 123.7 |
Total claims and claim expense payments | 137 | 129.7 | 257.2 | 241.9 |
Net reserves, end of period | 311.5 | 268.6 | 311.5 | 268.6 |
Plus: reinsurance recoverables | 104.3 | 109.8 | 104.3 | 109.8 |
Ending gross reserves | 415.8 | 378.4 | 415.8 | 378.4 |
Group Benefits | ||||
Segment Reporting Information | ||||
Beginning gross reserves | 120.3 | 133.2 | 121.6 | 125.4 |
Less: reinsurance recoverables | 28 | 29.8 | 27.9 | 28.6 |
Net reserves, beginning of period | 92.3 | 103.4 | 93.7 | 96.8 |
Incurred claims and claim expenses: | ||||
Claims occurring in the current period | 20.8 | 16.2 | 41 | 44.9 |
Increase (decrease) in estimated reserves for claims occurring in prior periods | (3) | (0.1) | (7.9) | (2) |
Total claims and claim expenses incurred | 17.8 | 16.1 | 33.1 | 42.9 |
Claims and claim expense payments for claims occurring during: | ||||
Current period | 8.9 | 11.4 | 13.1 | 15.8 |
Prior periods | 7.6 | 7.5 | 20 | 23.4 |
Total claims and claim expense payments | 16.5 | 18.9 | 33.1 | 39.2 |
Net reserves, end of period | 93.7 | 100.6 | 93.7 | 100.6 |
Plus: reinsurance recoverables | 28.2 | 29.6 | 28.2 | 29.6 |
Ending gross reserves | $ 121.9 | $ 130.2 | $ 121.9 | $ 130.2 |
Short- Duration Insurance Contr
Short- Duration Insurance Contracts - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property & Casualty | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Favorable (unfavorable) development of total reserves for claims occurring in prior years | $ 0 | $ (6,000,000) | $ 0 | $ (6,000,000) |
Group Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Favorable (unfavorable) development of total reserves for claims occurring in prior years | $ 7,900,000 | $ 2,000,000 |
Short-Duration Insurance Cont_4
Short-Duration Insurance Contracts - Reconciliation of Net Incurred and Paid Claims (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||
Unpaid claims and claim expenses | $ 597.8 | $ 564 | ||||
Total short-duration insurance contracts | ||||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||
Unpaid claims and claim expenses | 537.7 | 510.3 | ||||
Property & Casualty | ||||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||
Unpaid claims and claim expenses | 415.8 | 388.7 | ||||
Group Benefits | ||||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||
Unpaid claims and claim expenses | 121.9 | $ 120.3 | 121.6 | $ 130.2 | $ 133.2 | $ 125.4 |
Other than short-duration | ||||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||
Unpaid claims and claim expenses | $ 60.1 | $ 53.7 |
Long-Duration Insurance Contr_3
Long-Duration Insurance Contracts - Balances of and Changes in the LFPB (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | $ 1,740.9 | $ 1,740.9 | $ 1,718 | |||
Previously Reported | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | ||||||
Whole Life | ||||||
Present Value of Expected Net Premiums | ||||||
Beginning balance | 222.2 | 215.1 | 183 | $ 176.5 | ||
Beginning period (including reserves) | 260.7 | |||||
Beginning balance at original discount rate | 246.6 | 245.9 | 157.6 | 143.5 | ||
Beginning balance at original discount rate (including reserves) | 239.3 | |||||
Change in cash flow assumptions | 0 | 5.2 | $ 0 | $ 2.4 | ||
Actual variances from expected experience | 1.8 | 7.2 | 1 | 8.8 | ||
Adjusted balance | 247.7 | 251.7 | 247.6 | 154.7 | ||
Issuances | 2.6 | 5.4 | 12.5 | 13.3 | ||
Interest accruals | 1.8 | 3.6 | 6.7 | 6.2 | ||
Net premiums collected | (5) | (9.7) | (25) | (16.6) | ||
Ending balance at original discount rate | 247 | 247 | 245.9 | 157.6 | ||
Effect of changes in discount rate assumptions | (29.5) | (29.5) | (30.8) | 25.4 | ||
Ending balance | 217.5 | 217.5 | 215.1 | 183 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 515.1 | 493.6 | 500.7 | 507.1 | ||
Beginning balance (including reserves) | 660.4 | |||||
Beginning balance at original discount rate | 588.7 | 588.7 | 581.9 | 386.3 | 585.4 | 362.5 |
Beginning balance at original discount rate (including reserves) | 566.1 | |||||
Changes in cash flow assumptions | 0 | 5.2 | 0 | 2.8 | ||
Actual variances from expected experience | 1.9 | 7.7 | 1.1 | 8.7 | ||
Adjusted balance | 583.8 | 579 | 586.5 | 374 | ||
Issuances | 2.6 | 5.5 | 12.4 | 13.3 | ||
Interest accruals | 4.7 | 9.4 | 18 | 17.1 | ||
Benefit payments | (5.1) | (10) | (27.5) | (18.1) | ||
Ending balance at original discount rate | 588.7 | 588.7 | 581.9 | 386.3 | ||
Effect of changes in discount rate assumptions | (81.6) | (81.6) | (88.3) | 114.4 | ||
Ending balance | 507.1 | 507.1 | 493.6 | 500.7 | ||
Ending balance (including reserves) | 660.4 | |||||
Liability for future policy benefits | 289.4 | 289.4 | 278.4 | 317.7 | 330.6 | |
Less: Reinsurance recoverable | (63.1) | (63.1) | (63.1) | (0.5) | (0.1) | |
Less: Change in discount rate assumptions | (0.2) | |||||
Net liability for future policy benefits, after reinsurance recoverable | 226.3 | 226.3 | 215.3 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | 1.1 | |||
Net liability for future policy benefits at June 30, 2023 | 226.3 | 226.3 | 216.4 | 317.2 | 330.3 | |
Whole Life | Previously Reported | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | 218.7 | |||||
Whole Life | Change in discount rate assumptions | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 111.5 | |||||
Whole Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0.4 | |||||
Whole Life | Change in cash flow assumptions, effect of decrease of the DPL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Whole Life | Adjustment for removal of related balances in AOCI | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Term Life | ||||||
Present Value of Expected Net Premiums | ||||||
Beginning balance | 243.8 | 234.7 | 253.1 | 244.1 | ||
Beginning period (including reserves) | 264.4 | |||||
Beginning balance at original discount rate | 266 | 265.4 | 221.1 | 200.8 | ||
Beginning balance at original discount rate (including reserves) | 235.4 | |||||
Change in cash flow assumptions | (5.3) | 18.7 | (5.3) | (4.5) | ||
Actual variances from expected experience | (1) | (4.2) | 0.5 | 6.9 | ||
Adjusted balance | 259.1 | 249.9 | 261.2 | 203.2 | ||
Issuances | 6.5 | 13 | 28 | 29.8 | ||
Interest accruals | 2.7 | 5.2 | 9 | 7.9 | ||
Net premiums collected | (5.3) | (12.2) | (21.5) | (19.8) | ||
Ending balance at original discount rate | 265.1 | 265.1 | 265.4 | 221.1 | ||
Effect of changes in discount rate assumptions | (24.8) | (24.8) | (30.7) | 32 | ||
Ending balance | 240.3 | 240.3 | 234.7 | 253.1 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 365 | 347 | 370.6 | 364.7 | ||
Beginning balance (including reserves) | 411.5 | |||||
Beginning balance at original discount rate | 406.4 | 406.4 | 401 | 319.5 | 405.2 | 294 |
Beginning balance at original discount rate (including reserves) | 360 | |||||
Changes in cash flow assumptions | (5.6) | 21.5 | (5.6) | (4.8) | ||
Actual variances from expected experience | 0.7 | (4.7) | 2.2 | 7.2 | ||
Adjusted balance | 396.1 | 376.8 | 401.8 | 296.4 | ||
Issuances | 6.6 | 13.2 | 28.3 | 29.8 | ||
Interest accruals | 3.5 | 7.5 | 14.4 | 12 | ||
Benefit payments | (5.5) | (10.4) | (18.5) | (18.7) | ||
Ending balance at original discount rate | 406.4 | 406.4 | 401 | 319.5 | ||
Effect of changes in discount rate assumptions | (45.8) | (45.8) | (54) | 51.1 | ||
Ending balance | 360.6 | 360.6 | 347 | 370.6 | ||
Ending balance (including reserves) | 411.5 | |||||
Liability for future policy benefits | 120.3 | 120.3 | 112.2 | 117.6 | 120.5 | |
Less: Reinsurance recoverable | (16.7) | (16.7) | (15.3) | (5.5) | (5.4) | |
Less: Change in discount rate assumptions | (0.9) | |||||
Net liability for future policy benefits, after reinsurance recoverable | 103.6 | 103.6 | 96.9 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | 0.2 | |||
Net liability for future policy benefits at June 30, 2023 | 103.6 | 103.6 | 97.1 | 112.1 | 114.2 | |
Term Life | Previously Reported | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | 93.2 | |||||
Term Life | Change in discount rate assumptions | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 27.3 | |||||
Term Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Term Life | Change in cash flow assumptions, effect of decrease of the DPL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Term Life | Adjustment for removal of related balances in AOCI | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Experience Life | ||||||
Present Value of Expected Net Premiums | ||||||
Beginning balance | 69.8 | 68.3 | 74.6 | 78 | ||
Beginning period (including reserves) | 74.6 | |||||
Beginning balance at original discount rate | 65 | 65.5 | 55.8 | 55.2 | ||
Beginning balance at original discount rate (including reserves) | 55.9 | |||||
Change in cash flow assumptions | 0 | 9.1 | 0 | (3.3) | ||
Actual variances from expected experience | 0.7 | 3 | 0.5 | 6.3 | ||
Adjusted balance | 66.2 | 68 | 65.5 | 58.2 | ||
Issuances | 0 | 0 | 0 | 0 | ||
Interest accruals | 0.8 | 1.8 | 3.3 | 3.2 | ||
Net premiums collected | (1.6) | (3.3) | (5.8) | (5.6) | ||
Ending balance at original discount rate | 64.7 | 64.7 | 65.5 | 55.8 | ||
Effect of changes in discount rate assumptions | 3.4 | 3.4 | 2.8 | 18.8 | ||
Ending balance | 68.1 | 68.1 | 68.3 | 74.6 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 892.5 | 867.5 | 1,172.7 | 1,269.3 | ||
Beginning balance (including reserves) | 1,172.7 | |||||
Beginning balance at original discount rate | 799.6 | 799.6 | 805.2 | 802.5 | 801.5 | 813.5 |
Beginning balance at original discount rate (including reserves) | 802.6 | |||||
Changes in cash flow assumptions | 0 | 11 | 0 | (3.6) | ||
Actual variances from expected experience | 0.9 | 3.6 | 0.5 | 6.6 | ||
Adjusted balance | 806.1 | 817.2 | 802 | 816.5 | ||
Issuances | 0 | 0 | 0 | 0 | ||
Interest accruals | 11.9 | 23.8 | 47.4 | 47.9 | ||
Benefit payments | (14.3) | (30.3) | (59.4) | (61.9) | ||
Ending balance at original discount rate | 799.6 | 799.6 | 805.2 | 802.5 | ||
Effect of changes in discount rate assumptions | 71.9 | 71.9 | 62.3 | 370.2 | ||
Ending balance | 871.5 | 871.5 | 867.5 | 1,172.7 | ||
Ending balance (including reserves) | 1,172.7 | |||||
Liability for future policy benefits | 803.5 | 803.5 | 799.3 | 1,098.1 | 1,191.3 | |
Less: Reinsurance recoverable | (0.7) | (0.7) | (0.8) | (1.1) | (1.3) | |
Less: Change in discount rate assumptions | (0.7) | |||||
Net liability for future policy benefits, after reinsurance recoverable | 802.8 | 802.8 | 798.5 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | 0 | |||
Net liability for future policy benefits at June 30, 2023 | 802.8 | 802.8 | 798.5 | 1,097 | 1,189.3 | |
Experience Life | Previously Reported | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | 758.3 | |||||
Experience Life | Change in discount rate assumptions | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 433 | |||||
Experience Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Experience Life | Change in cash flow assumptions, effect of decrease of the DPL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Experience Life | Adjustment for removal of related balances in AOCI | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Limited Pay Whole Life | ||||||
Present Value of Expected Net Premiums | ||||||
Beginning balance | 31.2 | 29.7 | 29.7 | 25.4 | ||
Beginning period (including reserves) | 29.7 | |||||
Beginning balance at original discount rate | 33.1 | 32.4 | 27.2 | 22 | ||
Beginning balance at original discount rate (including reserves) | 27.2 | |||||
Change in cash flow assumptions | 0 | 2 | 0 | 0 | ||
Actual variances from expected experience | 1.3 | 1.6 | 0.8 | 1 | ||
Adjusted balance | 33.7 | 30.8 | 33.9 | 23 | ||
Issuances | 1.1 | 2.1 | 6.3 | 10.2 | ||
Interest accruals | 0.3 | 0.6 | 1.1 | 0.8 | ||
Net premiums collected | (1.1) | (2.2) | (5.8) | (6.8) | ||
Ending balance at original discount rate | 34.2 | 34.2 | 32.4 | 27.2 | ||
Effect of changes in discount rate assumptions | (2.5) | (2.5) | (2.7) | 2.5 | ||
Ending balance | 31.7 | 31.7 | 29.7 | 29.7 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 84.4 | 79.4 | 102.9 | 95 | ||
Beginning balance (including reserves) | 102.9 | |||||
Beginning balance at original discount rate | 102.6 | 102.6 | 98.6 | 86.6 | 100.3 | 73.4 |
Beginning balance at original discount rate (including reserves) | 86.6 | |||||
Changes in cash flow assumptions | 0 | 2 | 0 | 0 | ||
Actual variances from expected experience | 1.5 | 1.4 | 0.9 | 1.1 | ||
Adjusted balance | 100.1 | 90 | 101.2 | 74.5 | ||
Issuances | 1.1 | 2.1 | 6.4 | 10.2 | ||
Interest accruals | 1 | 1.9 | 3.4 | 2.9 | ||
Benefit payments | (0.7) | (1.5) | (1.2) | (1) | ||
Ending balance at original discount rate | 102.6 | 102.6 | 98.6 | 86.6 | ||
Effect of changes in discount rate assumptions | (17.3) | (17.3) | (19.2) | 16.3 | ||
Ending balance | 85.3 | 85.3 | 79.4 | 102.9 | ||
Ending balance (including reserves) | 102.9 | |||||
Liability for future policy benefits | 53.7 | 53.7 | 49.6 | 73.2 | 69.5 | |
Less: Reinsurance recoverable | (0.2) | (0.2) | 0 | (0.2) | (0.1) | |
Less: Change in discount rate assumptions | (0.1) | |||||
Net liability for future policy benefits, after reinsurance recoverable | 53.5 | 53.5 | 49.6 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | 0 | |||
Net liability for future policy benefits at June 30, 2023 | 53.5 | 53.5 | 49.6 | 73 | 69.3 | |
Limited Pay Whole Life | Previously Reported | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | 51.3 | |||||
Limited Pay Whole Life | Change in discount rate assumptions | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 18.2 | |||||
Limited Pay Whole Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Limited Pay Whole Life | Change in cash flow assumptions, effect of decrease of the DPL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Limited Pay Whole Life | Adjustment for removal of related balances in AOCI | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Supplemental health | ||||||
Present Value of Expected Net Premiums | ||||||
Beginning balance | 172.5 | 167.4 | 221.5 | 233 | ||
Beginning period (including reserves) | 226.7 | |||||
Beginning balance at original discount rate | 205.1 | 205.1 | 217.5 | 218.2 | ||
Beginning balance at original discount rate (including reserves) | 223.1 | |||||
Change in cash flow assumptions | 0 | 12.2 | 0 | (1.8) | ||
Actual variances from expected experience | 0.3 | (25.3) | 1.7 | 6.3 | ||
Adjusted balance | 205.4 | 210 | 206.8 | 222.7 | ||
Issuances | 4.6 | 9.9 | 12 | 13 | ||
Interest accruals | 1.5 | 3 | 5.9 | 5.9 | ||
Net premiums collected | (5.4) | (10.8) | (22.8) | (24.1) | ||
Ending balance at original discount rate | 207.5 | 207.5 | 205.1 | 217.5 | ||
Effect of changes in discount rate assumptions | (35.5) | (35.5) | (37.7) | 4 | ||
Ending balance | 172 | 172 | 167.4 | 221.5 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 437.7 | 431.7 | 580.6 | 626.9 | ||
Beginning balance (including reserves) | 590.6 | |||||
Beginning balance at original discount rate | 525.8 | 525.8 | 537.1 | 572.6 | 530.6 | 589.1 |
Beginning balance at original discount rate (including reserves) | 584.2 | |||||
Changes in cash flow assumptions | 0 | 13.8 | 0 | (3) | ||
Actual variances from expected experience | 0.1 | (30) | 1.8 | 6.2 | ||
Adjusted balance | 537.2 | 568 | 532.4 | 592.3 | ||
Issuances | 4.6 | 9.9 | 12 | 13 | ||
Interest accruals | 3.6 | 7.2 | 15 | 15.7 | ||
Benefit payments | (14.8) | (28.5) | (57.9) | (48.4) | ||
Ending balance at original discount rate | 525.8 | 525.8 | 537.1 | 572.6 | ||
Effect of changes in discount rate assumptions | (99.2) | (99.2) | (105.4) | 8 | ||
Ending balance | 426.6 | 426.6 | 431.7 | 580.6 | ||
Ending balance (including reserves) | 590.6 | |||||
Liability for future policy benefits | 254.5 | 254.5 | 264.4 | 359.1 | 415.5 | |
Less: Reinsurance recoverable | (3.9) | (3.9) | (3.4) | 0 | 0 | |
Less: Change in discount rate assumptions | 0 | |||||
Net liability for future policy benefits, after reinsurance recoverable | 250.6 | 250.6 | 261 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | 0 | |||
Net liability for future policy benefits at June 30, 2023 | 250.6 | 250.6 | 261 | 359.1 | 415.5 | |
Supplemental health | Previously Reported | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | 392.5 | |||||
Supplemental health | Change in discount rate assumptions | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 23 | |||||
Supplemental health | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Supplemental health | Change in cash flow assumptions, effect of decrease of the DPL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Supplemental health | Adjustment for removal of related balances in AOCI | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
Cancer | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for future policy benefits at June 30, 2023 | 97.3 | 97.3 | 101.8 | 140.8 | 163.5 | |
Accident | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for future policy benefits at June 30, 2023 | 21.5 | 21.5 | 21.8 | 28.7 | 31.2 | |
Disability | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for future policy benefits at June 30, 2023 | 22.9 | 22.9 | 23.1 | 29.3 | 32 | |
Other | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for future policy benefits at June 30, 2023 | 108.9 | 108.9 | 114.3 | 160.3 | 188.8 | |
SPIA (life contingent) | ||||||
Present Value of Expected Net Premiums | ||||||
Beginning balance | 0 | 0 | 0 | 0 | ||
Beginning period (including reserves) | 0 | |||||
Beginning balance at original discount rate | 0 | 0 | 0 | 0 | ||
Beginning balance at original discount rate (including reserves) | 0 | |||||
Change in cash flow assumptions | 0 | 0 | 0 | 0 | ||
Actual variances from expected experience | 0 | 0 | 0 | 0 | ||
Adjusted balance | 0 | 0 | 0 | 0 | ||
Issuances | 1.4 | 3.4 | 5.3 | 3.7 | ||
Interest accruals | 0 | 0 | 0 | 0 | ||
Net premiums collected | (1.4) | (3.4) | (5.3) | (3.7) | ||
Ending balance at original discount rate | 0 | 0 | 0 | 0 | ||
Effect of changes in discount rate assumptions | 0 | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 105.9 | 103.3 | 124.7 | 136.5 | ||
Beginning balance (including reserves) | 129.1 | |||||
Beginning balance at original discount rate | 113 | 113 | 113.4 | 111.6 | 113.3 | 115.9 |
Beginning balance at original discount rate (including reserves) | 115.7 | |||||
Changes in cash flow assumptions | 0 | 0 | 0 | 0 | ||
Actual variances from expected experience | (0.5) | 0.4 | 0 | (0.4) | ||
Adjusted balance | 112.9 | 116.1 | $ 113.3 | 115.5 | ||
Issuances | 1.6 | 4 | 5.3 | 3.7 | ||
Interest accruals | 1.1 | 2.2 | 4.3 | 4.5 | ||
Benefit payments | (3) | (6.1) | (12.3) | (12.1) | ||
Ending balance at original discount rate | 113 | 113 | 113.4 | 111.6 | ||
Effect of changes in discount rate assumptions | (9.4) | (9.4) | (10.1) | 13.1 | ||
Ending balance | 103.6 | 103.6 | 103.3 | 124.7 | ||
Ending balance (including reserves) | 129.1 | |||||
Liability for future policy benefits | 103.6 | 103.6 | 103.3 | 124.7 | 136.5 | |
Less: Reinsurance recoverable | (3.5) | (3.5) | (3.2) | 0 | 0 | |
Less: Change in discount rate assumptions | 0 | |||||
Net liability for future policy benefits, after reinsurance recoverable | 100.1 | 100.1 | 100.1 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | 0 | |||
Net liability for future policy benefits at June 30, 2023 | $ 100.1 | $ 100.1 | $ 100.1 | $ 124.7 | 136.5 | |
SPIA (life contingent) | Previously Reported | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Liability for future policy benefits | 115.9 | |||||
SPIA (life contingent) | Change in discount rate assumptions | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 20.6 | |||||
SPIA (life contingent) | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
SPIA (life contingent) | Change in cash flow assumptions, effect of decrease of the DPL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | 0 | |||||
SPIA (life contingent) | Adjustment for removal of related balances in AOCI | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in cash flow assumptions | $ 0 |
Long-Duration Insurance Contr_4
Long-Duration Insurance Contracts - Reconciliation of LFPB to Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | $ 1,740.9 | $ 1,718 | ||
Whole life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 289.4 | 279.5 | ||
Term life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 120.3 | 112.4 | ||
Experience Life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 803.5 | 799.3 | $ 1,098.1 | $ 1,191.3 |
Limited Pay Whole Life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 53.7 | 49.6 | 73.2 | 69.5 |
Supplemental health | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 254.5 | 264.4 | 359.1 | 415.5 |
SPIA (life contingent) | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 103.6 | 103.3 | $ 124.7 | $ 136.5 |
Limited-pay whole life DPL | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 3.4 | 3.2 | ||
SPIA (life contingent) DPL | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | 1 | 0.8 | ||
Reconciling items | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for future policy benefits | $ 111.5 | $ 105.5 |
Long-Duration Insurance Contr_5
Long-Duration Insurance Contracts - Amounts Recognized in the Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Gross premiums or assessments | $ 59.1 | $ 58.8 | $ 118.2 | $ 118.3 |
Interest expense | 18.9 | 19 | 37.9 | 38 |
Whole Life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Gross premiums or assessments | 6.7 | 6.2 | 13.3 | 12.3 |
Interest expense | 2.9 | 2.9 | 5.8 | 5.6 |
Term Life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Gross premiums or assessments | 11.4 | 10.4 | 22.2 | 20.3 |
Interest expense | 1.2 | 1.1 | 2.4 | 2.2 |
Experience Life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Gross premiums or assessments | 7.9 | 8.3 | 16.1 | 16.8 |
Interest expense | 10.9 | 11 | 21.9 | 22.1 |
Limited Pay Whole Life | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Gross premiums or assessments | 1.7 | 2.5 | 3.3 | 4.3 |
Interest expense | 0.7 | 0.6 | 1.3 | 1.2 |
Supplemental health | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Gross premiums or assessments | 30 | 30.6 | 59.7 | 61.3 |
Interest expense | 2.1 | 2.3 | 4.3 | 4.7 |
SPIA (life contingent) | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Gross premiums or assessments | 1.4 | 0.8 | 3.6 | 3.3 |
Interest expense | $ 1.1 | $ 1.1 | $ 2.2 | $ 2.2 |
Long-Duration Insurance Contr_6
Long-Duration Insurance Contracts - Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | $ 473.5 | $ 469 |
Expected future benefits and expenses, undiscounted | 1,134.3 | 1,121.4 |
Expected future gross premiums, discounted | 325.1 | 322.5 |
Expected future benefits and expenses, discounted | 588.7 | 580.4 |
Term Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 751.4 | 739.3 |
Expected future benefits and expenses, undiscounted | 693.9 | 678 |
Expected future gross premiums, discounted | 469 | 464.2 |
Expected future benefits and expenses, discounted | 406.4 | 401 |
Experience Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 551.9 | 569.6 |
Expected future benefits and expenses, undiscounted | 1,728.7 | 1,755.4 |
Expected future gross premiums, discounted | 306.7 | 315.5 |
Expected future benefits and expenses, discounted | 799.6 | 805.2 |
Limited Pay Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 63.1 | 60.8 |
Expected future benefits and expenses, undiscounted | 234.6 | 226.8 |
Expected future gross premiums, discounted | 48.1 | 46.5 |
Expected future benefits and expenses, discounted | 102.6 | 98.6 |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 1,645.7 | 1,640.5 |
Expected future benefits and expenses, undiscounted | 720.7 | 730.4 |
Expected future gross premiums, discounted | 1,213.6 | 1,214.9 |
Expected future benefits and expenses, discounted | 525.8 | 537 |
SPIA (life contingent) | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 0 | 0 |
Expected future benefits and expenses, undiscounted | 158.1 | 157.7 |
Expected future gross premiums, discounted | 0 | 0 |
Expected future benefits and expenses, discounted | $ 113 | $ 113.4 |
Long-Duration Insurance Contr_7
Long-Duration Insurance Contracts - Actual and Expected Experience of Mortality Rate and Lapse Rate (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.70% | 0.80% |
Mortality, expected experience | 0.70% | 0.70% |
Lapse rate, actual experience | 3.40% | 3.10% |
Lapse rate, expected experience | 4.70% | 5.80% |
Term Life | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.10% | 0.10% |
Mortality, expected experience | 0.10% | 0.10% |
Lapse rate, actual experience | 3.60% | 5% |
Lapse rate, expected experience | 5.60% | 4.90% |
Term Life | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.40% | |
Mortality, expected experience | 1.20% | 0.10% |
Lapse rate, actual experience | 5.60% | 64.10% |
Lapse rate, expected experience | 25.90% | 6% |
Experience Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 1.70% | 1.70% |
Mortality, expected experience | 1.60% | 1.40% |
Lapse rate, actual experience | 3.10% | 3.40% |
Lapse rate, expected experience | 3.10% | 3.20% |
Limited Pay Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.10% | 0.20% |
Mortality, expected experience | 0.20% | 0.20% |
Lapse rate, actual experience | 3.60% | 3.10% |
Lapse rate, expected experience | 5.20% | 7.40% |
Long-Duration Insurance Contr_8
Long-Duration Insurance Contracts - Weighted-Average Durations of LFPB (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 18 years | 18 years |
Term Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 16 years 4 months 24 days | 15 years 10 months 24 days |
Experience Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 10 years 6 months | 10 years 9 months 18 days |
Limited Pay Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 22 years 2 months 12 days | 21 years 6 months |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 10 years 3 months 18 days | 9 years 9 months 18 days |
SPIA (life contingent) | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 7 years 8 months 12 days | 7 years 8 months 12 days |
Long-Duration Insurance Contr_9
Long-Duration Insurance Contracts - Discount Rates for LFPB (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Whole Life | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 4.70% | 4.10% |
Whole Life | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.90% | 5% |
Current discount rate | 5.20% | 4.60% |
Term Life | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.10% | 4.10% |
Current discount rate | 5.20% | 4.60% |
Term Life | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.30% | 4.40% |
Current discount rate | 5.20% | 4.60% |
Experience Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 6.10% | 6.10% |
Current discount rate | 5.20% | 4.70% |
Limited Pay Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 3.90% | 3.90% |
Current discount rate | 5.20% | 4.70% |
Supplemental health | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 5.20% | 4.50% |
Supplemental health | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 2.70% | 2.70% |
Current discount rate | 5.30% | 5% |
SPIA (life contingent) | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 5.20% | 4.50% |
SPIA (life contingent) | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.10% | 4% |
Current discount rate | 5.20% | 4.50% |
Long-Duration Insurance Cont_10
Long-Duration Insurance Contracts - Policyholder Account Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | $ 5,260.6 | ||||
Interest credited | $ 50.7 | $ 41.4 | 99.4 | $ 81.1 | |
Ending balance | 5,206.2 | 5,206.2 | $ 5,260.6 | ||
Indexed Universal Life | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 49.9 | 41 | 47.6 | 39.1 | 39.1 |
Premiums received | 3.1 | 2.5 | 6.7 | 4.7 | |
Surrenders and withdrawals | (0.3) | (0.4) | (0.7) | (0.6) | |
Benefit payments | 0 | 0 | 0 | 0 | |
Net transfers from (to) separate account | (0.2) | 0 | (0.2) | 0 | |
Interest credited | 0.2 | 0.3 | 0.2 | 0.8 | |
Other | (0.7) | (0.8) | (1.6) | (1.4) | |
Ending balance | $ 52 | $ 42.6 | $ 52 | $ 42.6 | 47.6 |
Weighted-average crediting rate | (0.10%) | (1.40%) | 0% | 4.10% | |
Net amount at risk | $ 0 | $ 0 | $ 0 | $ 0 | |
Cash surrender value | 32.9 | 1.4 | 0 | 27.4 | |
Experience Life | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 63.5 | 65.9 | 64.3 | 66.2 | 66.2 |
Premiums received | (0.2) | 0 | (0.4) | 0 | |
Surrenders and withdrawals | (0.6) | (0.8) | (1.5) | (1.5) | |
Benefit payments | (0.4) | (0.4) | (0.9) | (0.8) | |
Net transfers from (to) separate account | 0 | 0 | 0 | 0 | |
Interest credited | 0.7 | 0.7 | 1.5 | 1.5 | |
Other | 0 | 0 | 0 | 0 | |
Ending balance | $ 63 | $ 65.4 | $ 63 | $ 65.4 | 64.3 |
Weighted-average crediting rate | (5.00%) | 0% | 0% | 5% | |
Net amount at risk | $ 0 | $ 0 | $ 0 | $ 0 | |
Cash surrender value | 62.8 | (0.5) | 0 | 64.7 | |
Fixed Account Annuities | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 4,577.4 | 4,548.2 | 4,591.1 | 4,532.7 | 4,532.7 |
Premiums received | 59 | 47.5 | 113.9 | 94.7 | |
Surrenders and withdrawals | (103.9) | (59.5) | (202) | (119.8) | |
Benefit payments | (17.8) | (14.4) | (36.9) | (32.9) | |
Net transfers from (to) separate account | 7.9 | 15.8 | 14.5 | 26.8 | |
Interest credited | 39.8 | 38.3 | 79.9 | 77.2 | |
Other | 1.1 | (2.2) | 3 | (5) | |
Ending balance | $ 4,563.5 | $ 4,573.7 | $ 4,563.5 | $ 4,573.7 | 4,591.1 |
Weighted-average crediting rate | 0% | 0% | 3.60% | 3.50% | |
Net amount at risk | $ (23.3) | $ 12.1 | $ 16.2 | $ 78.5 | |
Cash surrender value | 4,540.9 | 26.3 | 109.9 | 4,515.7 | |
Fixed Indexed Account Annuities | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 498.4 | 518.2 | 510.3 | 522.6 | 522.6 |
Premiums received | 5.4 | 8.1 | 10.5 | 17.4 | |
Surrenders and withdrawals | (18.6) | (9.4) | (32.5) | (20.3) | |
Benefit payments | (0.9) | (0.7) | (1.5) | (1.8) | |
Net transfers from (to) separate account | (2.4) | (0.3) | (3.3) | (0.4) | |
Interest credited | 0.9 | 1.3 | 0.9 | 3.1 | |
Other | (1.6) | 1 | (3.2) | (2.4) | |
Ending balance | $ 481.2 | $ 518.2 | $ 481.2 | $ 518.2 | 510.3 |
Weighted-average crediting rate | 0% | (0.20%) | 0% | 1.20% | |
Net amount at risk | $ 0 | $ 0 | $ 0 | $ 0 | |
Cash surrender value | 486.7 | (1.2) | 0 | 503 | |
SPIA (non-life contingent) | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 33.8 | 37 | 34.4 | 37.7 | 37.7 |
Premiums received | 1 | 0.6 | 2.1 | 1.4 | |
Surrenders and withdrawals | (0.1) | (0.1) | (0.2) | (0.4) | |
Benefit payments | (1.4) | (1.5) | (3.1) | (3) | |
Net transfers from (to) separate account | 0 | 0 | 0 | 0 | |
Interest credited | 0.2 | 0.3 | 0.5 | 0.6 | |
Other | 0 | 0 | (0.2) | 0 | |
Ending balance | $ 33.5 | $ 36.3 | $ 33.5 | $ 36.3 | $ 34.4 |
Weighted-average crediting rate | (3.00%) | 0% | 0% | 3% | |
Net amount at risk | $ 0 | $ 0 | $ 0 | $ 0 | |
Cash surrender value | $ 33.7 | $ (0.7) | $ 0 | $ 35.9 |
Long-Duration Insurance Cont_11
Long-Duration Insurance Contracts - Reconciliation of Policyholder Account Balances to the Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | ||||||
Policyholders' account balances | $ 5,206.2 | $ 5,260.6 | ||||
Indexed Universal Life | ||||||
Policyholder Account Balance [Line Items] | ||||||
Policyholders' account balances | 52 | $ 49.9 | 47.6 | $ 42.6 | $ 41 | $ 39.1 |
Experience Life | ||||||
Policyholder Account Balance [Line Items] | ||||||
Policyholders' account balances | 63 | 63.5 | 64.3 | 65.4 | 65.9 | 66.2 |
Fixed Account Annuities | ||||||
Policyholder Account Balance [Line Items] | ||||||
Policyholders' account balances | 4,563.5 | 4,577.4 | 4,591.1 | 4,573.7 | 4,548.2 | 4,532.7 |
Fixed Indexed Account Annuities | ||||||
Policyholder Account Balance [Line Items] | ||||||
Policyholders' account balances | 481.2 | 498.4 | 510.3 | 518.2 | 518.2 | 522.6 |
SPIA (non-life contingent) | ||||||
Policyholder Account Balance [Line Items] | ||||||
Policyholders' account balances | 33.5 | $ 33.8 | 34.4 | $ 36.3 | $ 37 | $ 37.7 |
Reconciling items | ||||||
Policyholder Account Balance [Line Items] | ||||||
Policyholders' account balances | $ 13 | $ 12.9 |
Long-Duration Insurance Cont_12
Long-Duration Insurance Contracts - Account Balances by Guaranteed Minimum Interest Rates (Details) $ in Millions | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 5,206.2 | $ 5,260.6 |
Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 952 | 943.6 |
Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 271.4 | 280.6 |
Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 639.4 | 668.2 |
Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 2,693.4 | 2,706.1 |
5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 90.3 | 91.7 |
Policyholder account balance with a guaranteed minimum crediting rate | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 4,646.5 | $ 4,690.2 |
Minimum | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% |
Minimum | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% |
Minimum | Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% |
Minimum | 5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 5% | 5% |
Maximum | Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% |
Maximum | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% |
Maximum | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% |
Maximum | Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, guaranteed minimum credit rating | 5% | 5% |
At Guaranteed Minimum | Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 81.5 | $ 262.5 |
At Guaranteed Minimum | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 214.5 | 256.1 |
At Guaranteed Minimum | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 626.5 | 667.4 |
At Guaranteed Minimum | Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 2,693.4 | 2,706.1 |
At Guaranteed Minimum | 5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 90.3 | 91.7 |
At Guaranteed Minimum | Policyholder account balance with a guaranteed minimum crediting rate | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 3,706.2 | 3,983.8 |
1-50 Basis Points Above | Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 327.4 | 370.6 |
1-50 Basis Points Above | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 46.7 | 19.8 |
1-50 Basis Points Above | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 12.2 | 0.4 |
1-50 Basis Points Above | Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0 | 0 |
1-50 Basis Points Above | 5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0 | 0 |
1-50 Basis Points Above | Policyholder account balance with a guaranteed minimum crediting rate | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 386.3 | $ 390.8 |
1-50 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 |
1-50 Basis Points Above | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 |
51-150 Basis Points Above | Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 372.3 | $ 214.4 |
51-150 Basis Points Above | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 9.4 | 4.7 |
51-150 Basis Points Above | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0.7 | 0.4 |
51-150 Basis Points Above | Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0 | 0 |
51-150 Basis Points Above | 5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0 | 0 |
51-150 Basis Points Above | Policyholder account balance with a guaranteed minimum crediting rate | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 382.4 | $ 219.5 |
51-150 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 |
51-150 Basis Points Above | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 |
Greater Than 150 Basis Points Above | Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 170.8 | $ 96.1 |
Greater Than 150 Basis Points Above | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0.8 | 0 |
Greater Than 150 Basis Points Above | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0 | 0 |
Greater Than 150 Basis Points Above | Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0 | 0 |
Greater Than 150 Basis Points Above | 5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0 | 0 |
Greater Than 150 Basis Points Above | Policyholder account balance with a guaranteed minimum crediting rate | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 171.6 | $ 96.1 |
Greater Than 150 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 |
Long-Duration Insurance Cont_13
Long-Duration Insurance Contracts - Separate Account Liability Rollforward (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of year | $ 2,792.3 | |
Balance, end of period | 3,098.5 | $ 2,792.3 |
Variable Account Annuities | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of year | 2,792.3 | 3,441 |
Deposits | 114.1 | 240.3 |
Withdrawals | (105) | (186.8) |
Net transfers | (11.2) | (38.1) |
Fees and charges | (18.4) | (36.8) |
Market appreciation (depreciation) | 330.2 | (619.7) |
Other | (3.5) | (7.6) |
Balance, end of period | $ 3,098.5 | $ 2,792.3 |
Long-Duration Insurance Cont_14
Long-Duration Insurance Contracts - Market Risk Benefits Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2020 | |
Market Risk Benefit [Roll Forward] | |||||
Balance, beginning of period | $ 1.3 | $ 4 | $ 0.2 | $ 4.8 | |
Balance, beginning of period, before effects of changes in the instrument-specific credit risk | 0.9 | 1.6 | 0 | 2 | |
Changes in market risk benefits | (4.1) | 2.6 | (3.2) | 2.2 | |
Balance, end of period | (3.2) | 4.2 | (3.2) | 4.2 | |
Effect of changes in the instrument-specific credit risk | (0.4) | 0.4 | (0.4) | 0.4 | |
Balance, end of period | (3.6) | 4.6 | (3.6) | 4.6 | |
Net amount at risk | $ 28.1 | $ 48.9 | $ 28.1 | $ 48.9 | $ 8.6 |
Weighted-average attained age of contract holders | 63 years | 62 years | 63 years | 62 years |
Long-Duration Insurance Cont_15
Long-Duration Insurance Contracts - Market Risk Benefits by Asset and Liability Balance (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Market Risk Benefit [Line Items] | |||||||
Net | $ (3.6) | $ 1.3 | $ 0.2 | $ 4.6 | $ 4 | $ 4.8 | $ 8.6 |
Deferred variable annuities | |||||||
Market Risk Benefit [Line Items] | |||||||
(Asset) | (6.2) | (4.4) | |||||
Liability | 2.6 | 4.7 | |||||
Net | $ (3.6) | $ 0.3 |
Long-Duration Insurance Cont_16
Long-Duration Insurance Contracts - Deferred Policy Acquisition Costs, Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | $ 330.6 | |||||
Amortization expense | $ (25.4) | $ (21.5) | (49.1) | $ (43.5) | ||
Balance, end of period | 332.9 | 332.9 | $ 330.6 | |||
Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 433.1 | |||||
Amortization expense | (27) | (53.4) | ||||
Balance, end of period | 433.1 | |||||
Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | (102.5) | |||||
Amortization expense | $ 5.5 | 9.9 | ||||
Balance, end of period | (102.5) | |||||
Whole Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 21.2 | 20.9 | 19.1 | 19.1 | $ 17.8 | |
Capitalizations | 0.7 | 1.3 | 3 | 2.4 | ||
Amortization expense | (0.3) | (0.6) | (1.2) | (1.1) | ||
Experience adjustment | 0 | 0 | 0 | 0 | ||
Balance, end of period | 21.6 | 21.6 | 20.9 | 19.1 | ||
Whole Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 17.8 | |||||
Whole Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Term Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 30.7 | 30 | 27.5 | 27.5 | 25.6 | |
Capitalizations | 1.5 | 2.8 | 5 | 4.2 | ||
Amortization expense | (0.8) | (1.4) | (2.5) | (2.3) | ||
Experience adjustment | 0 | 0 | 0 | 0 | ||
Balance, end of period | 31.4 | 31.4 | 30 | 27.5 | ||
Term Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 25.6 | |||||
Term Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Experience Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 5.8 | 5.8 | 6 | 6 | 6.2 | |
Capitalizations | 0.1 | 0.1 | 0.2 | 0.2 | ||
Amortization expense | (0.2) | (0.2) | (0.4) | (0.4) | ||
Experience adjustment | 0 | 0 | 0 | 0 | ||
Balance, end of period | 5.7 | 5.7 | 5.8 | 6 | ||
Experience Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 2.6 | |||||
Experience Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 3.6 | |||||
Limited Pay Whole Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 6.8 | 6.7 | 5.6 | 5.6 | 4.4 | |
Capitalizations | 0.3 | 0.5 | 1.4 | 1.5 | ||
Amortization expense | (0.1) | (0.2) | (0.3) | (0.3) | ||
Experience adjustment | 0 | 0 | 0 | 0 | ||
Balance, end of period | 7 | 7 | 6.7 | 5.6 | ||
Limited Pay Whole Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 4.4 | |||||
Limited Pay Whole Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Indexed Universal Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 15.7 | 15.4 | 13.7 | 13.7 | 12.9 | |
Capitalizations | 0.7 | 1.2 | 2.5 | 1.7 | ||
Amortization expense | (0.3) | (0.5) | (0.8) | (0.8) | ||
Experience adjustment | 0 | 0 | 0 | (0.1) | ||
Balance, end of period | 16.1 | 16.1 | 15.4 | 13.7 | ||
Indexed Universal Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 11.3 | |||||
Indexed Universal Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 1.6 | |||||
Supplemental health | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 6.7 | 6.2 | 4.9 | 4.9 | 4.3 | |
Capitalizations | 0.7 | 1.3 | 1.8 | 1.1 | ||
Amortization expense | (0.2) | (0.3) | (0.5) | (0.5) | ||
Experience adjustment | (0.2) | (0.2) | 0 | 0 | ||
Balance, end of period | 7 | 7 | 6.2 | 4.9 | ||
Supplemental health | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 4.3 | |||||
Supplemental health | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Total Annuities | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 219.7 | 221.1 | $ 223.3 | 223.3 | 223.1 | |
Capitalizations | 3.7 | 7.7 | 15.5 | 17.3 | ||
Amortization expense | (3.7) | (7.4) | (15.8) | (16) | ||
Experience adjustment | (2.5) | (4.2) | (1.9) | (1.1) | ||
Balance, end of period | $ 217.2 | $ 217.2 | $ 221.1 | 223.3 | ||
Total Annuities | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 137.7 | |||||
Total Annuities | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | $ 85.4 |
Long-Duration Insurance Cont_17
Long-Duration Insurance Contracts - Deferred Policy Acquisition Costs, Reconciliation to Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | $ 332.9 | $ 330.6 | |||
Whole Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 21.6 | $ 21.2 | 20.9 | $ 19.1 | $ 17.8 |
Term Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 31.4 | 30.7 | 30 | 27.5 | 25.6 |
Experience Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 5.7 | 5.8 | 5.8 | 6 | 6.2 |
Limited Pay Whole Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 7 | 6.8 | 6.7 | 5.6 | 4.4 |
Indexed Universal Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 16.1 | 15.7 | 15.4 | 13.7 | 12.9 |
Supplemental health | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 7 | 6.7 | 6.2 | 4.9 | 4.3 |
Total Annuities | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 217.2 | $ 219.7 | 221.1 | $ 223.3 | $ 223.1 |
Reconciling items | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | $ 26.9 | $ 24.5 |
Long-Duration Insurance Cont_18
Long-Duration Insurance Contracts - Deferred Sale Inducement Costs, Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Movement in Deferred Sales Inducements [Roll Forward] | ||
Balance, beginning of period | $ 15.4 | $ 15.9 |
Capitalizations | 0 | 0 |
Amortization expense | (0.3) | (0.6) |
Experience adjustment | (0.2) | (0.4) |
Balance, end of period | $ 14.9 | $ 14.9 |
Reinsurance - Summary of Reinsu
Reinsurance - Summary of Reinsurance Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Direct Amount | ||||
Net premiums written and contract deposits, Direct Amount | $ 394.7 | $ 375.1 | $ 762.5 | $ 735.9 |
Net premiums and contract charges earned, Direct Amount | 271.6 | 260.5 | 535.6 | 520.9 |
Benefits, claims and settlement expenses, Direct Amount | 217.5 | 212.4 | 410.4 | 394 |
Ceded to Other Companies | ||||
Net premiums written and contract deposits, Ceded to Other Companies | 17.9 | 16.5 | 34.5 | 31.3 |
Net premiums and contract charges earned, Ceded to Other Companies | 20 | 18.7 | 38.5 | 35.9 |
Benefits, claims and settlement expenses, Ceded to Other Companies | 14.3 | 18.5 | 27 | 25.7 |
Assumed from Other Companies | ||||
Net premiums written and contract deposits, Assumed from Other Companies | 9.4 | 13.7 | 19.8 | 26.1 |
Net premiums and contract charges earned, Assumed from Other Companies | 9.1 | 13.6 | 19.5 | 26.2 |
Benefits, claims and settlement expenses, Assumed from Other Companies | 2 | 9.5 | 5 | 10.3 |
Net Amount | ||||
Net premiums written and contract deposits, Net Amount | 386.2 | 372.3 | 747.8 | 730.7 |
Net premiums and contract charges earned, Net Amount | 260.7 | 255.4 | 516.6 | 511.2 |
Benefits, claims and settlement expenses, Net Amount | $ 205.2 | $ 203.4 | $ 388.4 | $ 378.6 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segments) | 4 |
Number of operating segments (segments) | 3 |
Segment Information - Summary o
Segment Information - Summary of Segment Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information | |||||
Net premiums and contract charges earned | $ 260.7 | $ 255.4 | $ 516.6 | $ 511.2 | |
Net investment income | 108.5 | 105.2 | 208.9 | 203.1 | |
Net income (loss) | (12.8) | (4.2) | (6.2) | 16.1 | |
Assets | 13,671.9 | 13,671.9 | $ 13,306.1 | ||
Intersegment eliminations | |||||
Segment Reporting Information | |||||
Net investment income | (0.5) | (0.5) | (1.1) | (1.1) | |
Assets | (51.7) | (51.7) | (64.9) | ||
Property & Casualty | Operating segments | |||||
Segment Reporting Information | |||||
Net premiums and contract charges earned | 157.4 | 149.9 | 309.8 | 300.1 | |
Net investment income | 10.6 | 7.7 | 14.6 | 14.9 | |
Net income (loss) | (21.4) | (25.4) | (33) | (16.9) | |
Assets | 1,077.9 | 1,077.9 | 1,083.8 | ||
Life & Retirement | Operating segments | |||||
Segment Reporting Information | |||||
Net premiums and contract charges earned | 37.4 | 36.3 | 75.1 | 72.1 | |
Net investment income | 89.3 | 88.4 | 177.2 | 172.6 | |
Net income (loss) | 17.4 | 23.8 | 31.4 | 39.4 | |
Assets | 11,127.1 | 11,127.1 | 10,754.5 | ||
Supplemental & Group Benefits | Operating segments | |||||
Segment Reporting Information | |||||
Net premiums and contract charges earned | 65.9 | 69.2 | 131.7 | 139 | |
Net investment income | 9.1 | 9.6 | 18.2 | 16.7 | |
Net income (loss) | 11.8 | 15 | 25.8 | 28.2 | |
Assets | 1,350.4 | 1,350.4 | 1,359.3 | ||
Corporate & Other | |||||
Segment Reporting Information | |||||
Net investment income | 0 | 0 | 0 | 0 | |
Net income (loss) | (20.6) | $ (17.6) | (30.4) | $ (34.6) | |
Assets | $ 168.2 | $ 168.2 | $ 173.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | $ 1,098.3 | |||
Other comprehensive income (loss) before reclassifications | $ (23.8) | $ (128.6) | 26.3 | $ (283) |
Amounts reclassified from AOCI | 11.6 | 2.3 | 13.5 | 4.1 |
Other comprehensive loss | (12.2) | (126.3) | 39.8 | (278.9) |
Ending balance | 1,101.9 | 1,197.2 | 1,101.9 | 1,197.2 |
Pretax reclassification amounts from AOCI, tax | (3.1) | (0.6) | (3.6) | (1.1) |
AOCI | ||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | (347.4) | (202.6) | (399.4) | (50) |
Ending balance | (359.6) | (328.9) | (359.6) | (328.9) |
Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities | ||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | (356.4) | 13 | (449.6) | 347.1 |
Other comprehensive income (loss) before reclassifications | (48.9) | (297.1) | 42.4 | (633) |
Amounts reclassified from AOCI | 11.6 | 2.3 | 13.5 | 4.1 |
Other comprehensive loss | (37.3) | (294.8) | 55.9 | (628.9) |
Ending balance | (393.7) | (281.8) | (393.7) | (281.8) |
Pretax reclassification amounts from accumulated other comprehensive income (loss) | (14.6) | (2.9) | (17) | (5.2) |
Net Reserve Remeasurements Attributable to Discount Rates | ||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | 17.8 | (205.4) | 59 | (386.9) |
Other comprehensive income (loss) before reclassifications | 25.1 | 168.5 | (16.1) | 350 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive loss | 25.1 | 168.5 | (16.1) | 350 |
Ending balance | 42.9 | (36.9) | 42.9 | (36.9) |
Net Funded Status of Benefit Plans | ||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||
Beginning balance | (8.8) | (10.2) | (8.8) | (10.2) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive loss | 0 | 0 | 0 | 0 |
Ending balance | $ (8.8) | $ (10.2) | $ (8.8) | $ (10.2) |
Supplemental Consolidated Cas_3
Supplemental Consolidated Cash and Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash | $ 22.2 | $ 42.2 | ||
Restricted cash | 0.9 | 0.6 | ||
Total cash and restricted cash reported in the Consolidated Balance Sheets | 23.1 | $ 50.1 | $ 42.8 | $ 133.7 |
Interest | 13.1 | 7.1 | ||
Income taxes | $ 10 | $ 5.3 |
Contingencies and Commitments (
Contingencies and Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments to purchase investments | $ 554.1 | $ 704.2 |
Prior Period Consolidated Fin_3
Prior Period Consolidated Financial Statements - Consolidated Balance Sheet (Unaudited) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||||
Total investments | $ 6,669.6 | $ 6,587.6 | ||
Cash | 23.1 | 42.8 | $ 50.1 | $ 133.7 |
Deferred policy acquisition costs | 332.9 | 330.6 | ||
Reinsurance balances receivable | 453.6 | 468 | ||
Deposit asset on reinsurance | 2,514.9 | 2,516.6 | ||
Intangible assets | 177.7 | 185.2 | ||
Goodwill | 54.3 | 54.3 | ||
Other assets | 347.3 | 328.7 | ||
Separate Account variable annuity assets | 3,098.5 | 2,792.3 | ||
Total assets | 13,671.9 | 13,306.1 | ||
Policy liabilities | ||||
Investment contract and policy reserves | 0 | |||
Future policy benefit reserves | 1,740.9 | 1,718 | ||
Policyholders' account balances | 5,206.2 | 5,260.6 | ||
Unpaid claims and claim expenses | 597.8 | 564 | ||
Unearned premiums | 272.5 | 266.1 | ||
Total policy liabilities | 7,817.4 | 7,808.7 | ||
Other policyholder funds | 900.5 | 809.3 | ||
Other liabilities | 255.5 | 299.5 | ||
Short-term debt | 249 | 249 | ||
Long-term debt | 249.1 | 249 | ||
Separate Account variable annuity liabilities | 3,098.5 | 2,792.3 | ||
Total liabilities | 12,570 | 12,207.8 | ||
Preferred stock | 0 | 0 | ||
Common stock | 0.1 | 0.1 | ||
Additional paid-in capital | 505.7 | 502.6 | ||
Retained earnings | 1,478.6 | 1,512.4 | ||
Accumulated other comprehensive income (loss), net of tax: | ||||
Net unrealized investment losses on fixed maturity securities | (393.7) | (449.6) | ||
Net reserve remeasurements attributable to discount rates | 42.9 | 59 | ||
Net funded status of benefit plans | (8.8) | (8.8) | ||
Treasury stock, at cost | (522.9) | (517.4) | ||
Total shareholders’ equity | 1,101.9 | 1,098.3 | 1,197.2 | |
Total liabilities and shareholders’ equity | $ 13,671.9 | 13,306.1 | ||
Previously Reported | ||||
Assets | ||||
Total investments | 6,587.6 | |||
Cash | 42.8 | 50.1 | 133.7 | |
Deferred policy acquisition costs | 433.1 | |||
Reinsurance balances receivable | 506.2 | |||
Deposit asset on reinsurance | 2,516.6 | |||
Intangible assets | 185.2 | |||
Goodwill | 54.3 | |||
Other assets | 328.7 | |||
Separate Account variable annuity assets | 2,792.3 | |||
Total assets | 13,446.8 | |||
Policy liabilities | ||||
Investment contract and policy reserves | 6,968 | |||
Future policy benefit reserves | ||||
Unpaid claims and claim expenses | 585.1 | |||
Unearned premiums | 264.2 | |||
Total policy liabilities | 7,817.3 | |||
Other policyholder funds | 954 | |||
Other liabilities | 297 | |||
Short-term debt | 249 | |||
Long-term debt | 249 | |||
Separate Account variable annuity liabilities | 2,792.3 | |||
Total liabilities | 12,358.6 | |||
Preferred stock | 0 | |||
Common stock | 0.1 | |||
Additional paid-in capital | 502.6 | |||
Retained earnings | 1,468.6 | |||
Accumulated other comprehensive income (loss), net of tax: | ||||
Net unrealized investment losses on fixed maturity securities | (356.9) | |||
Net reserve remeasurements attributable to discount rates | 0 | |||
Net funded status of benefit plans | (8.8) | |||
Treasury stock, at cost | (517.4) | |||
Total shareholders’ equity | 1,088.2 | 1,260.1 | ||
Total liabilities and shareholders’ equity | 13,446.8 | |||
Effect of the Adoption of ASU 2018-12 | ||||
Assets | ||||
Total investments | 0 | |||
Cash | 0 | 0 | $ 0 | |
Deferred policy acquisition costs | (102.5) | |||
Reinsurance balances receivable | (38.2) | |||
Deposit asset on reinsurance | 0 | |||
Intangible assets | 0 | |||
Goodwill | 0 | |||
Other assets | 0 | |||
Separate Account variable annuity assets | 0 | |||
Total assets | (140.7) | |||
Policy liabilities | ||||
Investment contract and policy reserves | (151.9) | |||
Future policy benefit reserves | ||||
Unpaid claims and claim expenses | (2.9) | |||
Unearned premiums | 1.9 | |||
Total policy liabilities | (152.9) | |||
Other policyholder funds | (0.4) | |||
Other liabilities | 2.5 | |||
Short-term debt | 0 | |||
Long-term debt | 0 | |||
Separate Account variable annuity liabilities | 0 | |||
Total liabilities | (150.8) | |||
Preferred stock | 0 | |||
Common stock | 0 | |||
Additional paid-in capital | 0 | |||
Retained earnings | 43.8 | |||
Accumulated other comprehensive income (loss), net of tax: | ||||
Net unrealized investment losses on fixed maturity securities | (92.7) | |||
Net reserve remeasurements attributable to discount rates | 59 | |||
Net funded status of benefit plans | 0 | |||
Treasury stock, at cost | 0 | |||
Total shareholders’ equity | 10.1 | $ (62.9) | ||
Total liabilities and shareholders’ equity | (140.7) | |||
Reclassifications | ||||
Assets | ||||
Total investments | 0 | |||
Cash | 0 | |||
Deferred policy acquisition costs | 0 | |||
Reinsurance balances receivable | 0 | |||
Deposit asset on reinsurance | 0 | |||
Intangible assets | 0 | |||
Goodwill | 0 | |||
Other assets | 0 | |||
Separate Account variable annuity assets | 0 | |||
Total assets | 0 | |||
Policy liabilities | ||||
Investment contract and policy reserves | (6,816.1) | |||
Future policy benefit reserves | 1,718 | |||
Policyholders' account balances | 5,260.6 | |||
Unpaid claims and claim expenses | (18.2) | |||
Unearned premiums | 0 | |||
Total policy liabilities | 144.3 | |||
Other policyholder funds | (144.3) | |||
Other liabilities | 0 | |||
Short-term debt | 0 | |||
Long-term debt | 0 | |||
Separate Account variable annuity liabilities | 0 | |||
Total liabilities | 0 | |||
Preferred stock | 0 | |||
Common stock | 0 | |||
Additional paid-in capital | 0 | |||
Retained earnings | 0 | |||
Accumulated other comprehensive income (loss), net of tax: | ||||
Net unrealized investment losses on fixed maturity securities | 0 | |||
Net reserve remeasurements attributable to discount rates | 0 | |||
Net funded status of benefit plans | 0 | |||
Treasury stock, at cost | 0 | |||
Total shareholders’ equity | 0 | |||
Total liabilities and shareholders’ equity | $ 0 |
Prior Period Consolidated Fin_4
Prior Period Consolidated Financial Statements - Consolidated Statement of Operations and Comprehensive Income (Loss)(Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Net premiums and contract charges earned | $ 260.7 | $ 255.4 | $ 516.6 | $ 511.2 |
Net investment income | 108.5 | 105.2 | 208.9 | 203.1 |
Net investment losses | (17.4) | (15.5) | (21.3) | (31) |
Other income | 4.6 | 0.8 | 6.1 | 9.3 |
Total revenues | 356.4 | 345.9 | 710.3 | 692.6 |
Benefits, losses and expenses | ||||
Benefits, claims and settlement expenses | 205.2 | 203.4 | 388.4 | 378.6 |
Interest credited | 50.7 | 41.4 | 99.4 | 81.1 |
Operating expenses | 80.1 | 77.1 | 159.9 | 153.8 |
DAC amortization expense | 25.4 | 21.5 | 49.1 | 43.5 |
Intangible asset amortization expense | 3.7 | 4.2 | 7.4 | 8.4 |
Interest expense | 6.9 | 4.3 | 13.6 | 8.2 |
Total benefits, losses and expenses | 372 | 351.9 | 717.8 | 673.6 |
Income (loss) before income taxes | (15.6) | (6) | (7.5) | 19 |
Income tax expense (benefit) | (2.8) | (1.8) | (1.3) | 2.9 |
Net income (loss) | $ (12.8) | $ (4.2) | $ (6.2) | $ 16.1 |
Net income (loss) per share | ||||
Basic (in usd per share) | $ (0.31) | $ (0.10) | $ (0.15) | $ 0.38 |
Diluted (in usd per share) | $ (0.31) | $ (0.10) | $ (0.15) | $ 0.38 |
Weighted average number of shares and equivalent shares | ||||
Basic (in shares) | 41.3 | 41.8 | 41.3 | 41.8 |
Diluted (in shares) | 41.4 | 41.8 | 41.4 | 42 |
Other comprehensive loss, net of tax: | ||||
Change in net unrealized investment losses on fixed maturity securities | $ (37.3) | $ (294.8) | $ 55.9 | $ (628.9) |
Change in net reserve remeasurements attributable to discount rates | 25.1 | 168.5 | (16.1) | 350 |
Change in net funded status of benefit plans | 0 | 0 | 0 | 0 |
Other comprehensive loss | (12.2) | (126.3) | 39.8 | (278.9) |
Comprehensive income (loss) | $ (25) | (130.5) | $ 33.6 | (262.8) |
Previously Reported | ||||
Revenues | ||||
Net premiums and contract charges earned | 255.8 | 511.7 | ||
Net investment income | 105.2 | 203.1 | ||
Net investment losses | (15.5) | (31) | ||
Other income | 0.8 | 9.3 | ||
Total revenues | 346.3 | 693.1 | ||
Benefits, losses and expenses | ||||
Benefits, claims and settlement expenses | 207.6 | 384.6 | ||
Interest credited | 42.4 | 83.2 | ||
Operating expenses | 77.3 | 154.1 | ||
DAC amortization expense | 27 | 53.4 | ||
Intangible asset amortization expense | 4.2 | 8.4 | ||
Interest expense | 4.3 | 8.2 | ||
Total benefits, losses and expenses | 362.8 | 691.9 | ||
Income (loss) before income taxes | (16.5) | 1.2 | ||
Income tax expense (benefit) | (4) | (0.8) | ||
Net income (loss) | $ (12.5) | $ 2 | ||
Net income (loss) per share | ||||
Basic (in usd per share) | $ (0.30) | $ 0.05 | ||
Diluted (in usd per share) | $ (0.30) | $ 0.05 | ||
Weighted average number of shares and equivalent shares | ||||
Basic (in shares) | 41.8 | 41.8 | ||
Diluted (in shares) | 41.8 | 42 | ||
Other comprehensive loss, net of tax: | ||||
Change in net unrealized investment losses on fixed maturity securities | $ (240.4) | $ (511.1) | ||
Change in net reserve remeasurements attributable to discount rates | 0 | 0 | ||
Change in net funded status of benefit plans | 0 | 0 | ||
Other comprehensive loss | (240.4) | (511.1) | ||
Comprehensive income (loss) | (252.9) | (509.1) | ||
Effect of the Adoption of ASU 2018-12 | ||||
Revenues | ||||
Net premiums and contract charges earned | (0.4) | (0.5) | ||
Net investment income | 0 | 0 | ||
Net investment losses | 0 | 0 | ||
Other income | 0 | 0 | ||
Total revenues | (0.4) | (0.5) | ||
Benefits, losses and expenses | ||||
Benefits, claims and settlement expenses | (4.2) | (6) | ||
Interest credited | (1) | (2.1) | ||
Operating expenses | (0.2) | (0.3) | ||
DAC amortization expense | (5.5) | (9.9) | ||
Intangible asset amortization expense | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Total benefits, losses and expenses | (10.9) | (18.3) | ||
Income (loss) before income taxes | 10.5 | 17.8 | ||
Income tax expense (benefit) | 2.2 | 3.7 | ||
Net income (loss) | $ 8.3 | $ 14.1 | ||
Net income (loss) per share | ||||
Basic (in usd per share) | $ 0.20 | $ 0.33 | ||
Diluted (in usd per share) | $ 0.20 | $ 0.33 | ||
Weighted average number of shares and equivalent shares | ||||
Basic (in shares) | 0 | 0 | ||
Diluted (in shares) | 0 | 0 | ||
Other comprehensive loss, net of tax: | ||||
Change in net unrealized investment losses on fixed maturity securities | $ (54.4) | $ (117.8) | ||
Change in net reserve remeasurements attributable to discount rates | 168.5 | 350 | ||
Change in net funded status of benefit plans | 0 | 0 | ||
Other comprehensive loss | 114.1 | 232.2 | ||
Comprehensive income (loss) | $ 122.4 | $ 246.3 |
Prior Period Consolidated Fin_5
Prior Period Consolidated Financial Statements - Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Cash dividends (in usd per share) | $ 0.32 | $ 0.33 | $ 0.32 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 1,098.3 | |||||
Net income (loss) | $ (12.8) | $ (4.2) | (6.2) | $ 16.1 | ||
Change in net reserve remeasurements attributable to discount rates | 25.1 | 168.5 | (16.1) | 350 | ||
Ending balance | 1,101.9 | 1,197.2 | 1,101.9 | 1,197.2 | ||
Previously Reported | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 1,088.2 | |||||
Net income (loss) | (12.5) | 2 | ||||
Change in net reserve remeasurements attributable to discount rates | 0 | 0 | ||||
Ending balance | 1,260.1 | 1,260.1 | ||||
Effect of the Adoption of ASU 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 10.1 | |||||
Net income (loss) | 8.3 | 14.1 | ||||
Change in net reserve remeasurements attributable to discount rates | 168.5 | 350 | ||||
Ending balance | (62.9) | (62.9) | ||||
Common stock, $0.001 par value | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 0.1 | 0.1 | 0.1 | 0.1 | ||
Ending balance | 0.1 | 0.1 | 0.1 | 0.1 | ||
Common stock, $0.001 par value | Previously Reported | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Ending balance | 0.1 | 0.1 | ||||
Common stock, $0.001 par value | Effect of the Adoption of ASU 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Ending balance | 0 | 0 | ||||
Additional paid-in capital | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 503.1 | 496.6 | 502.6 | 495.3 | ||
Ending balance | 505.7 | 498.1 | 505.7 | 498.1 | ||
Additional paid-in capital | Previously Reported | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Ending balance | 498.1 | 498.1 | ||||
Additional paid-in capital | Effect of the Adoption of ASU 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Ending balance | 0 | 0 | ||||
Retained earnings | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 1,505.2 | 1,553 | 1,512.4 | 1,547 | ||
Net income (loss) | (12.8) | (4.2) | (6.2) | 16.1 | ||
Dividends,per share; 2022, $0.32 per share | (13.8) | (13.5) | (27.6) | (27) | ||
Ending balance | 1,478.6 | 1,535.3 | 1,478.6 | 1,535.3 | ||
Retained earnings | Accounting Standards Update 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (0.8) | |||||
Retained earnings | Previously Reported | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 1,525.9 | 1,524.9 | ||||
Net income (loss) | (12.5) | 2 | ||||
Dividends,per share; 2022, $0.32 per share | (13.5) | (27) | ||||
Ending balance | 1,499.9 | 1,499.9 | ||||
Retained earnings | Effect of the Adoption of ASU 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 27.1 | 22.1 | ||||
Net income (loss) | 8.3 | 14.1 | ||||
Dividends,per share; 2022, $0.32 per share | 0 | 0 | ||||
Ending balance | 35.4 | 35.4 | ||||
Retained earnings | Effect of the Adoption of ASU 2018-12 | Accounting Standards Update 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | [1] | (0.8) | ||||
Accumulated other comprehensive income (loss), net of tax: | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (347.4) | (202.6) | (399.4) | (50) | ||
Change in net unrealized investment losses on fixed maturity securities | (37.3) | (294.8) | 55.9 | (628.9) | ||
Change in net reserve remeasurements attributable to discount rates | 25.1 | 168.5 | (16.1) | 350 | ||
Ending balance | (359.6) | (328.9) | (359.6) | (328.9) | ||
Accumulated other comprehensive income (loss), net of tax: | Previously Reported | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 9.8 | 280.5 | ||||
Change in net unrealized investment losses on fixed maturity securities | (240.4) | (511.1) | ||||
Change in net reserve remeasurements attributable to discount rates | 0 | 0 | ||||
Ending balance | (230.6) | (230.6) | ||||
Accumulated other comprehensive income (loss), net of tax: | Effect of the Adoption of ASU 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (212.4) | (330.5) | ||||
Change in net unrealized investment losses on fixed maturity securities | (54.4) | (117.8) | ||||
Change in net reserve remeasurements attributable to discount rates | 168.5 | 350 | ||||
Ending balance | (98.3) | (98.3) | ||||
Treasury stock, at cost | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (521.8) | (495.6) | (517.4) | (493.4) | ||
Ending balance | $ (522.9) | (507.4) | $ (522.9) | (507.4) | ||
Treasury stock, at cost | Previously Reported | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Ending balance | (507.4) | (507.4) | ||||
Treasury stock, at cost | Effect of the Adoption of ASU 2018-12 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Ending balance | $ 0 | $ 0 | ||||
[1]See Note 1 to the Consolidated Financial Statements for information regarding the adoption of ASU 2018-12. |
Prior Period Consolidated Fin_6
Prior Period Consolidated Financial Statements - Consolidated Statement of Cash Flows (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows - operating activities | ||||
Net income (loss) | $ (12.8) | $ (4.2) | $ (6.2) | $ 16.1 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Net investment losses | 21.3 | 31 | ||
Depreciation and intangible asset amortization | 12.9 | 7.9 | ||
Share-based compensation expense | 4.5 | 4.4 | ||
Loss (gain) from equity method investments, net of dividends or distributions | 11.5 | (3.8) | ||
Changes in: | ||||
Insurance liabilities | 126.8 | 275.2 | ||
Amounts due under reinsurance agreements | 14.3 | (310.4) | ||
Income tax liabilities | (15.7) | 93 | ||
Other operating assets and liabilities | (17.3) | (36.2) | ||
Other, net | 1.8 | 2.8 | ||
Net cash provided by operating activities | 153.9 | 80 | ||
Cash flows - investing activities | ||||
Net cash used in investing activities | (44.6) | (296.1) | ||
Cash flows - financing activities | ||||
Net cash provided by (used in) financing activities | (129) | 132.5 | ||
Net decrease in cash | (19.7) | (83.6) | ||
Cash at beginning of period | 42.8 | 133.7 | ||
Cash at end of period | $ 23.1 | 50.1 | 23.1 | 50.1 |
Previously Reported | ||||
Cash flows - operating activities | ||||
Net income (loss) | (12.5) | 2 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Net investment losses | 31 | |||
Depreciation and intangible asset amortization | 7.9 | |||
Share-based compensation expense | 4.4 | |||
Loss (gain) from equity method investments, net of dividends or distributions | (3.8) | |||
Changes in: | ||||
Insurance liabilities | 411.8 | |||
Amounts due under reinsurance agreements | (344.3) | |||
Income tax liabilities | (6.3) | |||
Other operating assets and liabilities | (25.8) | |||
Other, net | 3.1 | |||
Net cash provided by operating activities | 80 | |||
Cash flows - investing activities | ||||
Net cash used in investing activities | (296.1) | |||
Cash flows - financing activities | ||||
Net cash provided by (used in) financing activities | 132.5 | |||
Net decrease in cash | (83.6) | |||
Cash at beginning of period | 42.8 | 133.7 | ||
Cash at end of period | 50.1 | 50.1 | ||
Effect of the Adoption of ASU 2018-12 | ||||
Cash flows - operating activities | ||||
Net income (loss) | 8.3 | 14.1 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Net investment losses | 0 | |||
Depreciation and intangible asset amortization | 0 | |||
Share-based compensation expense | 0 | |||
Loss (gain) from equity method investments, net of dividends or distributions | 0 | |||
Changes in: | ||||
Insurance liabilities | (136.6) | |||
Amounts due under reinsurance agreements | 33.9 | |||
Income tax liabilities | 99.3 | |||
Other operating assets and liabilities | (10.4) | |||
Other, net | (0.3) | |||
Net cash provided by operating activities | 0 | |||
Cash flows - investing activities | ||||
Net cash used in investing activities | 0 | |||
Cash flows - financing activities | ||||
Net cash provided by (used in) financing activities | 0 | |||
Net decrease in cash | 0 | |||
Cash at beginning of period | $ 0 | 0 | ||
Cash at end of period | $ 0 | $ 0 |