Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.001 par value | |
Trading Symbol | HMN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,963,670 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000850141 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2024, $5,785.4; 2023, $5,652.9) | $ 5,342.7 | $ 5,235.3 |
Equity securities at fair value, (cost $101700000 and $86200000) | 84.7 | 86.2 |
Limited partnership interests | 1,119.3 | 1,138.8 |
Policy loans | 140.7 | 141.4 |
Short-term and other investments | 170.5 | 228.8 |
Total investments | 6,857.9 | 6,830.5 |
Cash | 20.4 | 29.7 |
Deferred policy acquisition costs | 337.3 | 336.3 |
Reinsurance balances receivable | 449.3 | 480.5 |
Deposit asset on reinsurance | 2,472.4 | 2,496.6 |
Intangible assets | 166.7 | 170.3 |
Goodwill | 54.3 | 54.3 |
Other assets | 361.1 | 357.6 |
Separate Account variable annuity assets | 3,516.9 | 3,294.1 |
Total assets | 14,236.3 | 14,049.9 |
Policy liabilities | ||
Future policy benefit reserves | 1,702.1 | 1,761.8 |
Policyholders' account balances | 5,137.6 | 5,187 |
Unpaid claims and claim expenses | 584.4 | 581.7 |
Unearned premiums | 299.8 | 300.9 |
Total policy liabilities | 7,723.9 | 7,831.4 |
Other policyholder funds | 941.1 | 916 |
Other liabilities | 296.8 | 287.1 |
Long-term debt | 546.2 | 546 |
Separate Account variable annuity liabilities | 3,516.9 | 3,294.1 |
Total liabilities | 13,024.9 | 12,874.6 |
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, 2024, 66,876,995; 2023, 66,747,821 | 0.1 | 0.1 |
Additional paid-in capital | 513.1 | 510.9 |
Retained earnings | 1,514.4 | 1,502.2 |
Accumulated other comprehensive income (loss), net of tax: | ||
Net unrealized investment losses on fixed maturity securities | (348) | (328.3) |
Net reserve remeasurements attributable to discount rates | 63.3 | 21.9 |
Net funded status of benefit plans | (7.6) | (7.6) |
Treasury stock, at cost, 2024, 25,911,087 shares; 2023, 25,911,087 shares | (523.9) | (523.9) |
Total shareholders’ equity | 1,211.4 | 1,175.3 |
Total liabilities and shareholders’ equity | $ 14,236.3 | $ 14,049.9 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 5,785.4 | $ 5,652.9 |
Equity Securities, FV-NI, Cost | $ 101.7 | $ 86.2 |
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) | 66,876,995 | 66,747,821 |
Treasury stock (in shares) | 25,911,087 | 25,911,087 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Net premiums and contract charges earned | $ 275.2 | $ 255.9 |
Net investment income | 105.4 | 100.4 |
Net investment gains (losses) | 2.2 | (3.9) |
Other income | 3.2 | 1.5 |
Total revenues | 386 | 353.9 |
Benefits, losses and expenses | ||
Benefits, claims and settlement expenses | 176.3 | 183.2 |
Interest credited | 52.9 | 48.7 |
Operating expenses | 84.5 | 79.8 |
DAC amortization expense | 27 | 23.7 |
Intangible asset amortization expense | 3.6 | 3.7 |
Interest expense | 8.7 | 6.7 |
Total benefits, losses and expenses | 353 | 345.8 |
Income before income taxes | 33 | 8.1 |
Income tax expense | 6.5 | 1.5 |
Net income | $ 26.5 | $ 6.6 |
Net income per share | ||
Basic (in usd per share) | $ 0.64 | $ 0.16 |
Diluted (in usd per share) | $ 0.64 | $ 0.16 |
Weighted average number of shares and equivalent shares | ||
Basic (in shares) | 41.3 | 41.3 |
Diluted (in shares) | 41.5 | 41.4 |
Statements of Comprehensive Income (Loss) | ||
Net income | $ 26.5 | $ 6.6 |
Other comprehensive income (loss), net of tax: | ||
Change in net unrealized investment losses on fixed maturity securities | (19.7) | 93.2 |
Change in net reserve remeasurements attributable to discount rates | 41.4 | (41.2) |
Change in net funded status of benefit plans | 0 | 0 |
Other comprehensive income | 21.7 | 52 |
Comprehensive income (loss) | $ 48.2 | $ 58.6 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss), net of tax: | Treasury stock, at cost |
Beginning balance at Dec. 31, 2022 | $ 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 | (1.4) | |||||
Share-based compensation expense | 1.9 | |||||
Net income (loss) | $ 6.6 | 6.6 | ||||
Dividends, 2024, $0.34 per share; 2023, $0.33 per share | (13.8) | |||||
Change in net unrealized investment losses on fixed maturity securities | 93.2 | |||||
Change in net reserve remeasurements attributable to discount rates | (41.2) | (41.2) | ||||
Treasury stock acquired - share repurchase authorization | (4.4) | |||||
Ending balance at Mar. 31, 2023 | 1,139.2 | 0.1 | 503.1 | 1,505.2 | (347.4) | (521.8) |
Beginning balance at Dec. 31, 2023 | 1,175.3 | 0.1 | 510.9 | 1,502.2 | (314) | (523.9) |
Increase (Decrease) in Stockholders' Equity | ||||||
Options exercised and conversion of common and restricted stock units | (0.1) | |||||
Share-based compensation expense | 2.3 | |||||
Net income (loss) | 26.5 | 26.5 | ||||
Dividends, 2024, $0.34 per share; 2023, $0.33 per share | (14.3) | |||||
Change in net unrealized investment losses on fixed maturity securities | (19.7) | |||||
Change in net reserve remeasurements attributable to discount rates | 41.4 | 41.4 | ||||
Ending balance at Mar. 31, 2024 | $ 1,211.4 | $ 0.1 | $ 513.1 | $ 1,514.4 | $ (292.3) | $ (523.9) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Cash dividends (in usd per share) | $ 0.34 | $ 0.33 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows - operating activities | ||
Net income | $ 26.5 | $ 6.6 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Net investment gains (losses) | (2.2) | 3.9 |
Depreciation and intangible asset amortization | 6.6 | 6.6 |
Share-based compensation expense | 2.5 | 2 |
Loss (gain) from equity method investments, net of dividends or distributions | 15.6 | 10 |
Changes in: | ||
Insurance liabilities | (27.8) | 55.8 |
Amounts due under reinsurance agreements | 31.3 | 0.3 |
Income tax liabilities | 17.6 | (9.9) |
Other operating assets and liabilities | 10.8 | 5.4 |
Other, net | (6.4) | 5.7 |
Net cash provided by operating activities | 74.5 | 86.4 |
Cash flows - investing activities | ||
Fixed maturity securities purchases | (335.6) | (185.5) |
Fixed maturity securities sales | 88 | 62.7 |
Fixed maturity securities maturities, paydowns, calls and redemptions | 119.3 | 73.7 |
Equity securities purchases | (1.1) | (1.1) |
Equity securities sales and repayments | 0 | 0 |
Limited partnership interests purchases | (19.2) | (75.1) |
Limited partnership interests sales | 23.1 | 3.4 |
Change in short-term and other investments, net | 65 | 26.6 |
Other-net | 1 | 0 |
Net cash used in investing activities | (59.5) | (95.3) |
Cash flows - financing activities | ||
Dividends paid to shareholders | (13.9) | (13.5) |
Treasury stock acquired | 0 | (4.4) |
Proceeds from exercise of stock options | 1.1 | 0 |
Withholding tax payments on RSUs tendered | (1.6) | (1.7) |
Annuity contracts: variable, fixed and FHLB funding agreements: | ||
Deposits | 185.9 | 278.7 |
Benefits, withdrawals and net transfers to Separate Account variable annuity assets | (149.3) | (152.2) |
Repayment of FHLB funding agreements | (50) | (85) |
Life policy accounts deposits, withdrawals, and surrenders | 2.1 | 2.3 |
Change in deposit asset on reinsurance | (49.3) | (24) |
Net increase (decrease) in reverse repurchase agreements | 50 | 0 |
Change in book overdrafts | 0.7 | (6.7) |
Net cash used in financing activities | (24.3) | (6.5) |
Net decrease in cash | (9.3) | (15.4) |
Cash at beginning of period | 29.7 | 42.8 |
Cash at end of period | $ 20.4 | $ 27.4 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. The results of operations for the three months ended March 31, 2024 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, 2023. 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 and 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, valuation of future policy benefit reserves, and valuation of liabilities for property and casualty unpaid claims and claim expense reserves. Future Adoption of New Accounting Standards Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 includes: 1) a requirement to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, 2) a requirement to disclose an amount for other segment items by reportable segment and a description of its composition, 3) a requirement to disclose a reportable segments profit or loss and assets currently required by Topic 280 in interim periods, 4) clarifies that in addition to the measure that is most consistent with the measurement principles under generally accepted accounting principles (GAAP), a public entity is not precluded from reporting additional measures of a segment's profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources, and 5) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This guidance will be effective for the Company for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the Company for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Fixed maturity securities $ 70.4 $ 67.7 Equity securities 1.2 2.7 Limited partnership interests 6.2 4.4 Short-term and other investments 4.7 3.5 Investment expenses (2.6) (3.6) Net investment income - investment portfolio 79.9 74.7 Investment income - deposit asset on reinsurance 25.5 25.7 Total net investment income $ 105.4 $ 100.4 Net Investment Gains (Losses) Net investment gains (losses) for the following periods were as follows: ($ in millions) Three Months Ended 2024 2023 Fixed maturity securities $ (1.0) $ (2.4) Equity securities 2.6 (1.0) Short-term investments and other 0.6 (0.5) Net investment gains (losses) $ 2.2 $ (3.9) The Company, from time to time, sells fixed maturity securities subsequent to the reporting date but prior to the issuance of the financial statements that were in an unrealized loss position but no credit loss was recognized and there was no intent to sell the securities at the 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 Gains (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 2024 2023 Credit loss impairments $ (0.9) $ — Intent-to-sell impairments — — Total impairments (0.9) — Sales and other, net (0.1) (2.4) Change in fair value - equity securities 2.6 (1.0) Change in fair value and gains (losses) realized on settlements - derivatives 0.6 (0.5) Net investment gains (losses) $ 2.2 $ (3.9) 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 2024 2023 Beginning balance $ 1.2 $ 1.2 Credit losses on fixed maturity securities for which credit losses were not previously reported 0.9 — Net increase related to credit losses previously reported — — Reduction of credit allowances related to sales — — Write-offs — — Ending balance $ 2.1 $ 1.2 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 March 31, 2024 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 746.5 $ 2.9 $ 71.7 $ 677.7 Other, including U.S. Treasury securities 457.6 0.4 66.8 391.2 Municipal bonds 1,282.2 22.6 97.3 1,207.5 Foreign government bonds 23.1 — 1.2 21.9 Corporate bonds 2,041.1 18.5 229.7 1,829.9 Other asset-backed securities 1,234.9 12.3 32.7 1,214.5 Totals $ 5,785.4 $ 56.7 $ 499.4 $ 5,342.7 December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 713.4 $ 4.4 $ 64.6 $ 653.2 Other, including U.S. Treasury securities 450.8 0.8 62.8 388.8 Municipal bonds 1,333.4 28.6 91.9 1,270.1 Foreign government bonds 23.1 — 1.0 22.1 Corporate bonds 1,969.9 23.1 220.3 1,772.7 Other asset-backed securities 1,162.3 6.0 39.9 1,128.4 Totals $ 5,652.9 $ 62.9 $ 480.5 $ 5,235.3 The following table presents the fair value and gross unrealized losses for fixed maturity securities in an unrealized loss position as of March 31, 2024 and December 31, 2023, respectively. The Company views the decrease in fair value of all of the fixed maturity securities with unrealized losses as of March 31, 2024 as due to factors other than a credit loss. As of March 31, 2024, 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 a recovery of the amortized cost basis. In reaching our conclusion that an allowance for credit is unnecessary, we considered the factors described in the evaluation of credit loss impairments for fixed maturity securities critical accounting estimate in our Annual Report on Form 10-K. In the current three months ended March 31, 2024, the performance of fixed maturity securities has been impacted by the change in interest rates, specifically interest rates being at relatively high levels compared to interest rates at the time of acquisition of the securities. In consideration of the factors, we expect to receive cash flows sufficient to recover the entire amortized cost basis of the securities in the following table. ($ in millions) 12 Months or Less More than 12 Months Total Fair Value Gross Fair Value Gross Fair Value Gross March 31, 2024 Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 63.1 $ 1.0 $ 470.4 $ 70.7 $ 533.5 $ 71.7 Other 100.8 1.6 276.6 65.2 377.4 66.8 Municipal bonds 111.7 1.6 704.9 95.7 816.6 97.3 Foreign government bonds 1.4 0.1 20.5 1.1 21.9 1.2 Corporate bonds 252.8 23.5 1,147.4 206.2 1,400.2 229.7 Other asset-backed securities 52.0 0.6 535.4 32.1 587.4 32.7 Total $ 581.8 $ 28.4 $ 3,155.2 $ 471.0 $ 3,737.0 $ 499.4 Number of positions with a gross unrealized loss 298 2,213 2,511 Fair value as a percentage of total fixed maturity securities at fair value 10.9 % 59.1 % 70.0 % December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 45.3 $ 0.8 $ 458.5 $ 63.8 $ 503.8 $ 64.6 Other 39.5 0.4 288.0 62.4 327.5 62.8 Municipal bonds 64.5 0.9 724.6 91.0 789.1 91.9 Foreign government bonds 1.5 — 20.6 1.0 22.1 1.0 Corporate bonds 195.0 25.4 1,171.3 194.9 1,366.3 220.3 Other asset-backed securities 133.4 0.8 752.5 39.1 885.9 39.9 Total $ 479.2 $ 28.3 $ 3,415.5 $ 452.2 $ 3,894.7 $ 480.5 Number of positions with a gross unrealized loss 195 2,305 2,500 Fair value as a percentage of total fixed maturity securities at fair value 9.2 % 65.2 % 74.4 % 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 March 31, 2024 December 31, 2023 Credit Rating AAA 191 226 AA 984 1,006 A 415 423 BBB 437 448 Total investment grade 2,027 2,103 BB 82 93 B 34 39 CCC or lower 8 7 Total below investment grade 124 139 Not rated 62 63 Totals: 2,213 2,305 Fixed maturity securities with an investment grade rating represented 95.9% of the gross unrealized losses as of March 31, 2024. For the same reasons discussed above, we expect to receive cash flow sufficient to recover the entire amortized cost basis of the securities in the previous table. 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) March 31, 2024 Amortized Fair Percent of Total Fair Value Estimated expected maturity: Due in 1 year or less $ 287.5 $ 283.8 5.3 % Due after 1 year through 5 years 1,480.5 1,438.2 26.9 % Due after 5 years through 10 years 1,496.8 1,425.0 26.7 % Due after 10 years through 20 years 1,475.8 1,321.7 24.7 % Due after 20 years 1,044.8 874.0 16.4 % Total $ 5,785.4 $ 5,342.7 100.0 % Average option-adjusted duration, in years 5.9 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 2024 2023 Fixed maturity securities Proceeds received $ 88.0 $ 62.7 Gross gains realized 1.3 0.3 Gross losses realized (1.4) (2.7) Equity securities Proceeds received $ — $ — Gross gains realized — — Gross losses realized — — 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 2024 2023 Net unrealized investment gains (losses) Beginning of period $ (328.3) $ (449.6) Change in net unrealized investment gains (20.5) 91.3 Reclassification of net investment losses 0.8 1.9 End of period $ (348.0) $ (356.4) 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, real estate equity funds, private equity funds, infrastructure 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 carrying amounts of EMA limited partnership interests were as follows: ($ in millions) March 31, 2024 December 31, 2023 Commercial mortgage loan funds $ 646.2 $ 660.8 Real estate equity funds 103.3 109.2 Private equity funds 95.5 92.7 Infrastructure equity funds 78.0 77.2 Infrastructure debt funds 62.4 59.1 Other funds (1) 133.9 139.8 Total $ 1,119.3 $ 1,138.8 (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 4 in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 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 March 31, 2024 Asset derivatives: Free-standing derivatives $ 23.1 $ — $ 23.1 $ — $ 23.6 $ (0.5) December 31, 2023 Asset derivatives: Free-standing derivatives $ 19.0 $ — $ 19.0 $ — $ 18.5 $ 0.5 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 was $51.8 million as of March 31, 2024 and $0.0 million as of December 31, 2023. The obligation for securities sold under reverse repurchase agreements was a net amount of $50.0 million as of March 31, 2024 and $0.0 million December 31, 2023. Deposits As of March 31, 2024 and December 31, 2023, fixed maturity securities with a fair value of $27.0 million and $29.2 million 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 March 31, 2024 and December 31, 2023, fixed maturity securities with a fair value of $1,014.4 million and $987.2 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 $929.5 million as of March 31, 2024 and $904.5 million as of December 31, 2023. The deposited securities are reported as Fixed maturity securities on the Company’s Consolidated Balance Sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company is required to disclose estimated fair values for certain financial and nonfinancial assets and liabilities. Fair values of the Company’s insurance contracts other than annuity contracts (which are investment contracts) and EMA limited partnership interests are not required to be disclosed. However, the estimated fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk through appropriate matching of investment maturities with amounts due under insurance contracts. Information regarding the three-level fair value hierarchy presented below and the valuation methodologies utilized by the Company to estimate fair values at each reporting date is included in Part II - Item 8, Note 3 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Financial Instruments Measured and Carried at Fair Value on a Recurring Basis The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. During the three months ended March 31, 2024 and 2023, there were no transfers between Level 1 and Level 2. As of March 31, 2024, Level 3 invested assets comprised 9.2% of the Company’s total investment portfolio at fair value. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 March 31, 2024 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 677.7 $ 677.7 $ — $ 677.7 $ — Other, including U.S. Treasury securities 391.2 391.2 45.0 346.2 — Municipal bonds 1,207.5 1,207.5 — 1,134.3 73.2 Foreign government bonds 21.9 21.9 — 21.9 — Corporate bonds 1,829.9 1,829.9 8.6 1,475.8 345.5 Other asset-backed securities 1,214.5 1,214.5 — 1,125.8 88.7 Total fixed maturity securities 5,342.7 5,342.7 53.6 4,781.7 507.4 Equity securities 84.7 84.7 18.1 64.1 2.5 Short-term investments 69.4 69.4 69.4 — — Other investments 23.1 23.1 — 23.1 — Totals $ 5,519.9 $ 5,519.9 $ 141.1 $ 4,868.9 $ 509.9 Separate Account variable annuity assets (1) $ 3,516.9 $ 3,516.9 $ 3,516.9 $ — $ — Financial Liabilities (2) $ 85.0 $ 85.0 $ — $ 4.2 $ 80.8 December 31, 2023 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 653.2 $ 653.2 $ — $ 653.2 $ — Other, including U.S. Treasury securities 388.8 388.8 45.6 343.2 — Municipal bonds 1,270.1 1,270.1 — 1,196.1 74.0 Foreign government bonds 22.1 22.1 — 22.1 — Corporate bonds 1,772.7 1,772.7 10.1 1,420.1 342.5 Other asset-backed securities 1,128.4 1,128.4 — 1,030.9 97.5 Total fixed maturity securities 5,235.3 5,235.3 55.7 4,665.6 514.0 Equity securities 86.2 86.2 17.9 63.8 4.5 Short-term investments 132.9 132.9 132.9 — — Other investments 19.0 19.0 — 19.0 — Totals $ 5,473.4 $ 5,473.4 $ 206.5 $ 4,748.4 $ 518.5 Separate Account (variable annuity) assets (1) $ 3,294.1 $ 3,294.1 $ 3,294.1 $ — $ — Financial Liabilities (2) $ 86.0 $ 86.0 $ — $ 3.6 $ 82.4 (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, January 1, 2024 $ 74.0 $ 342.5 $ 97.5 $ 514.0 $ 4.5 $ 518.5 $ 82.4 Transfers into Level 3 (3) — — — — — — — Transfers out of Level 3 (3) — (4.4) — (4.4) — (4.4) — Total gains or losses Net investment gains (losses) included in net income — — — — 0.1 0.1 — Net investment (gains) losses included in net income related to financial liabilities — — — — — — 1.3 Net unrealized gains (losses) included in OCI (0.7) (0.6) 2.4 1.1 — 1.1 (0.1) Purchases — 14.1 — 14.1 — 14.1 — Issuances — — — — — — 1.4 Sales — — — — — — — Settlements — — — — — — — Paydowns, maturities and distributions (0.1) (6.1) (11.2) (17.4) (2.1) (19.5) (4.2) Ending balance, March 31, 2024 $ 73.2 $ 345.5 $ 88.7 $ 507.4 $ 2.5 $ 509.9 $ 80.8 Beginning balance, January 1, 2023 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.0 Transfers into Level 3 (3) — 5.9 0.4 6.3 — 6.3 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net investment gains (losses) included in net income — — — — — — — Net investment (gains) losses included in net income related to financial liabilities — — — — — — 0.2 Net unrealized gains (losses) included in OCI 1.2 0.9 (0.4) 1.7 — 1.7 — Purchases — 19.0 0.2 19.2 — 19.2 — Issuances — — — — — — 2.1 Sales — (2.6) — (2.6) — (2.6) — Settlements — — — — — — — Paydowns, maturities and distributions (0.2) (0.5) (3.2) (3.9) — (3.9) (3.4) Ending balance, March 31, 2023 $ 55.4 $ 284.0 $ 104.6 $ 444.0 $ 2.0 $ 446.0 $ 89.9 (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 months ended March 31, 2024 and 2023 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. As of March 31, 2024, the Company had a $0.1 million net investment gain on Level 3 financial assets that was included in net income and was attributable to the change in fair value. As of March 31, 2023, the Company had no net investment losses on Level 3 financial assets. For the three months ended March 31, 2024 and 2023, a net investment loss of $1.3 million and $0.2 million , respectively, were included in net income that were attributable to changes in the fair value of Level 3 financial liabilities. Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources: ($ in millions) Total Internal External March 31, 2024 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 73.2 — 73.2 Corporate bonds 345.5 185.5 160.0 Other asset-backed securities 88.7 — 88.7 Total fixed maturity securities 507.4 185.5 321.9 Equity securities 2.5 — 2.5 Totals $ 509.9 $ 185.5 $ 324.4 Financial Liabilities (1) $ 80.8 $ 80.8 $ — December 31, 2023 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 74.0 — 74.0 Corporate bonds 342.5 180.4 162.1 Other asset-backed securities 97.5 — 97.5 Total fixed maturity securities 514.0 180.4 333.6 Equity securities 4.5 — 4.5 Totals $ 518.5 $ 180.4 $ 338.1 Financial Liabilities (1) $ 82.4 $ 82.4 $ — (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. External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available. 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 with Level 3. ($ in millions) Fair Value as of March 31, 2024 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 185.5 discounted cash flow yield 4.5% - 16.2% decrease discounted cash flow option adjusted spread 116 bps - 852 bps decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 87.1 discounted cash flow lapse rate 5.9% decrease mortality multiplier (2) 69.4% decrease option budget 0.9% - 3.8% increase non-performance adjustment (3) 5.0% decrease Net MRBs $ (6.3) discounted cash flow lapse rate 5.9% decrease mortality multiplier (2) 69.4% increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) 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 processes as described in Part II - Item 8, Note 3 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Generally, valuation techniques for corporate bonds include using discounted cash flow techniques where the unobservable input is the yield. The yield used for the valuation of these fixed maturity securities is less observable than securities classified as Level 2. 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 3 in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The following table presents the carrying amount and fair value of the Company’s financial assets and financial liabilities not carried at fair value and the level within the fair value hierarchy at which such financial assets and liabilities are categorized. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 March 31, 2024 Financial Assets Other investments $ 218.7 $ 222.0 $ — $ 34.9 $ 187.1 Deposit asset on reinsurance 2,472.4 2,192.2 — — 2,192.2 Financial Liabilities Policyholders' account balances 5,052.6 4,657.8 — — 4,657.8 Reverse repurchase agreement 50.0 51.8 — 51.8 — Other policyholder funds 941.1 941.1 — 933.7 7.4 Long-term debt 546.2 569.8 — 569.8 — December 31, 2023 Financial Assets Other investments $ 218.4 $ 221.7 $ — $ 33.8 $ 187.9 Deposit asset on reinsurance 2,496.6 2,259.6 — — 2,259.6 Financial Liabilities Policyholders' account balances 4,996.3 4,861.8 — — 4,861.8 Other policyholder funds 916.0 916.0 — 908.7 7.3 Long-term debt 546.0 571.4 — 571.4 — |
Short-Duration Insurance Contra
Short-Duration Insurance Contracts | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Property & Casualty Beginning gross reserves $ 416.8 $ 388.7 Less: reinsurance recoverables 104.0 100.8 Net reserves, beginning of period (1) 312.8 287.9 Incurred claims and claim expenses: Claims occurring in the current period 124.7 128.8 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) — — Total claims and claim expenses incurred 124.7 128.8 Claims and claim expense payments for claims occurring during: Current period 44.6 40.6 Prior periods 78.3 79.6 Total claims and claim expense payments 122.9 120.2 Net reserves, end of period (1) 314.6 296.5 Plus: reinsurance recoverables 103.6 101.3 Ending gross reserves $ 418.2 $ 397.8 (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 months ended March 31, 2024 or March 31, 2023. 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 2024 2023 Group Benefits Beginning gross reserves $ 116.6 $ 121.6 Less: reinsurance recoverables 27.7 27.9 Net reserves, beginning of period (1) 88.9 93.7 Incurred claims and claim expenses: Claims occurring in the current period 20.2 20.2 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) (6.1) (4.9) Total claims and claim expenses incurred 14.1 15.3 Claims and claim expense payments for claims occurring during: Current period 3.9 4.2 Prior periods 12.4 12.4 Total claims and claim expense payments 16.3 16.6 Net reserves, end of period (1) 86.7 92.3 Plus: reinsurance recoverables 27.6 28.0 Ending gross reserves $ 114.3 $ 120.3 (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 $6.1 million and $4.9 million f or the three months ended March 31, 2024 and 2023, respectively. The favorable development for the three months ended March 31, 2024 was primarily the result of favorable loss trends in specialty health and group life and disability for loss years 2023 and prior. The favorable development for the three months ended March 31, 2023 was primarily the result of favorable loss trends in specialty health for loss years 2022 and prior. Reconciliation of Property & Casualty and Group Benefits Unpaid Claims and Claim Expense Reserves to the Consolidated Balance Sheets ($ in millions) As of March 31, 2024 As of December 31, 2023 Ending gross reserves Property & Casualty $ 418.2 $ 416.8 Group Benefits 114.3 116.6 Total short-duration insurance contracts 532.5 533.4 Other than short-duration (1) 51.9 48.3 Total unpaid claims and claims expenses $ 584.4 $ 581.7 (1) |
Long-Duration Insurance Contrac
Long-Duration Insurance Contracts | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Long-Duration Insurance Contracts | Long-Duration Insurance Contracts Liability for Future Policy Benefits As of and for the three months ended March 31, 2024 and 2023, 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 March 31, 2024 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, 2024 $ 223.2 $ 240.0 $ 71.7 $ 32.2 $ 182.0 $ — January 1, 2024 balance at original discount rate 247.1 256.6 67.0 33.9 213.4 — Effect of: Change in cash flow assumptions — — — — — — Actual variances from expected experience 0.3 0.3 (0.1) 0.2 0.2 — Adjusted balance at January 1, 2024 247.4 256.9 66.9 34.1 213.6 — Issuances (3) 2.5 6.1 — 1.0 5.6 0.6 Interest accruals (4) 1.9 2.6 0.9 0.3 1.6 — Net premiums collected (5) (7.8) (6.2) (1.7) (1.2) (6.2) (0.6) March 31, 2024 balance at original discount rate 244.0 259.4 66.1 34.2 214.6 — Effect of changes in discount rate assumptions (28.5) (21.7) 2.9 (2.3) (35.1) — Balance at March 31, 2024 215.5 237.7 69.0 31.9 179.5 — Present value of expected future policy benefits: Balance at January 1, 2024 522.0 370.1 883.0 89.6 427.6 104.2 January 1, 2024 balance at original discount rate 592.1 405.4 797.5 105.6 517.9 111.4 Effect of: Changes in cash flow assumptions — — — — — — Actual variances from expected experience 0.5 1.0 — 0.1 0.1 0.3 Adjusted balance at January 1, 2024 592.6 406.4 797.5 105.7 518.0 111.7 Issuances 2.5 6.2 — 1.0 5.6 0.6 Interest accruals 4.8 3.9 11.8 1.0 3.6 1.1 Benefit payments (6) (7.9) (5.4) (17.6) (0.4) (16.7) (3.1) March 31, 2024 balance at original discount rate 592.0 411.1 791.7 107.3 510.5 110.3 Effect of changes in discount rate assumptions (88.2) (45.0) 57.9 (20.1) (98.9) (9.0) Balance at March 31, 2024 503.8 366.1 849.6 87.2 411.6 101.3 Net liability for future policy benefits 288.3 128.3 780.6 55.3 231.8 101.3 Less: Reinsurance recoverable (62.5) (19.0) (1.1) (1.1) (3.8) (3.5) Net liability for future policy benefits, after reinsurance recoverable 225.8 109.3 779.5 54.2 228.0 97.8 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at March 31, 2024 $ 225.8 $ 109.3 $ 779.5 $ 54.2 $ 228.0 $ 97.8 (1) Experience Life contains both whole life and term elements. (2) As of March 31, 2024, the net LFPB for Supplemental Health was $113.1 million for cancer, $20.7 million for accident, $26.5 million for disability and $122.6 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2023 were as follows: ($ 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 — (16.8) 3.7 (0.2) 6.5 — Actual variances from expected experience 3.8 (2.7) 0.7 1.0 (1.6) — Adjusted balance at January 1, 2023 249.7 245.9 69.9 33.2 210.0 — Issuances (3) 10.8 25.2 — 4.3 19.4 5.6 Interest accruals (4) 7.2 10.3 3.7 1.2 6.0 — Net premiums collected (5) (20.6) (24.8) (6.6) (4.8) (22.0) (5.6) December 31, 2023 balance at original discount rate 247.1 256.6 67.0 33.9 213.4 — Effect of changes in discount rate assumptions (23.9) (16.6) 4.7 (1.7) (31.4) — Balance at December 31, 2023 223.2 240.0 71.7 32.2 182.0 — 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 (0.6) (16.7) 5.0 (0.2) 8.9 — Actual variances from expected experience 4.0 1.3 1.1 1.0 (2.4) (0.8) Adjusted balance at January 1, 2023 585.3 385.6 811.3 99.4 543.6 112.6 Issuances 10.7 25.8 — 4.3 19.4 6.3 Interest accruals 19.0 15.2 47.4 3.9 14.4 4.4 Benefit payments (6) (22.9) (21.2) (61.2) (2.0) (59.5) (11.9) December 31, 2023 balance at original discount rate 592.1 405.4 797.5 105.6 517.9 111.4 Effect of changes in discount rate assumptions (70.1) (35.3) 85.5 (16.0) (90.3) (7.2) Balance at December 31, 2023 522.0 370.1 883.0 89.6 427.6 104.2 Net liability for future policy benefits 298.8 130.2 811.3 57.4 245.6 104.2 Less: Reinsurance recoverable (64.3) (19.1) (1.0) (1.2) (4.0) (3.6) Net liability for future policy benefits, after reinsurance recoverable 234.5 111.1 810.3 56.2 241.6 100.6 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at December 31, 2023 $ 234.5 $ 111.1 $ 810.3 $ 56.2 $ 241.6 $ 100.6 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2023, the net LFPB for Supplemental Health was $92.7 million for cancer, $21.4 million for accident, $23.5 million for disability and $104.0 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets: ($ in millions) March 31, 2024 December 31, 2023 Whole life $ 288.3 $ 298.8 Term life 128.3 130.2 Experience life 780.6 811.3 Limited-pay whole life 55.3 57.4 Supplemental health 231.8 245.6 SPIA (life contingent) 101.3 104.2 Limited-pay whole life DPL 4.3 4.1 SPIA (life contingent) DPL 1.3 1.3 Reconciling items (1) 110.9 108.9 Total $ 1,702.1 $ 1,761.8 (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 Three Months Ended March 31, 2024 2023 Whole life $ 6.9 $ 6.6 Term life 11.2 10.8 Experience life 7.7 8.2 Limited-pay whole life 1.8 1.6 Supplemental health 30.4 29.7 SPIA (life contingent) 1.2 2.2 Total $ 59.2 $ 59.1 ($ in millions) Interest expense Three Months Ended March 31, 2024 2023 Whole life $ 3.0 $ 2.9 Term life 1.3 1.2 Experience life 10.8 11.0 Limited-pay whole life 0.7 0.6 Supplemental health 2.0 2.2 SPIA (life contingent) 1.1 1.1 Total $ 18.9 $ 19.0 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 March 31, 2024 As of December 31, 2023 Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 473.5 $ 323.0 $ 478.8 $ 325.0 Expected future benefits and expenses 1,151.5 592.0 1,152.8 592.1 Term life Expected future gross premiums 695.7 452.3 689.0 449.4 Expected future benefits and expenses 694.7 411.1 682.7 405.4 Experience Life Expected future gross premiums 519.4 290.6 530.0 296.1 Expected future benefits and expenses 1,684.3 791.7 1,703.1 797.5 Limited-pay whole life Expected future gross premiums 65.6 49.6 64.7 49.1 Expected future benefits and expenses 249.2 107.3 244.9 105.6 Supplemental health Expected future gross premiums 1,619.2 1,187.4 1,624.1 1,192.5 Expected future benefits and expenses 712.7 510.5 719.4 517.9 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 155.0 110.3 156.1 111.4 For the three months ended March 31, 2024 and for the year ended December 31, 2023, 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: March 31, 2024 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.2% 2.1 % — % N.M. Expected experience 0.7 % 0.1% - 0.4% 1.7 % 0.3 % N.M. Lapses Actual experience 3.4 % 3.6% - 22.0% 3.4 % 3.6 % N.M. Expected experience 4.3 % 5.1% - 6.9% 3.0 % 4.6 % N.M. March 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.3% 1.9 % — % N.M. Expected experience 0.7 % 0.1% - 0.6% 1.6 % 0.2 % N.M. Lapses Actual experience 3.6 % 5.6% - 8.3% 3.4 % 3.6 % N.M. Expected experience 4.6 % 2.8% - 5.6% 3.0 % 5.1 % N.M. The following table provides the weighted-average durations of LFPB, in years: As of March 31, 2024 2023 Whole life 17.9 18.0 Term life 16.6 17.0 Experience life 10.3 11.0 Limited-pay whole life 21.9 23.0 Supplemental health 10.8 10.2 SPIA (life contingent) 7.6 8.0 The following table provides ranges of the weighted-average interest rates for LFPB: As of March 31, 2024 2023 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 4.9% Current discount rate 4.6% - 5.4% 4.7% - 5.0% Term life Interest accretion rate 4.2% - 4.2% 4.1% - 4.3% Current discount rate 5.2% - 5.3% 4.9% - 5.0% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.3 % 5.0 % Limited-pay whole life Interest accretion rate 4.0 % 3.9 % Current discount rate 5.4 % 5.0 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.3% - 5.4% 5.0% - 5.2% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.1% Current discount rate 5.2% - 5.2% 4.9% - 5.0% 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 March 31, 2024 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2024 $ 57.8 $ 61.2 $ 4,556.0 $ 449.0 $ 32.6 Premiums received (1) $ 3.9 $ (0.1) $ 49.0 $ 3.6 $ 0.8 Surrenders and withdrawals (2) (0.5) (1.3) (112.2) (13.3) (0.6) Benefit payments (3) — (0.5) (20.6) (0.8) (1.4) Net transfers from (to) separate account (0.1) — 1.9 (0.8) — Interest credited (4) 0.8 0.7 41.7 2.7 0.2 Other (0.9) 0.1 4.1 (3.0) — Balance at March 31, 2024 $ 61.0 $ 60.1 $ 4,519.9 $ 437.4 $ 31.6 Weighted-average crediting rate 5.6 % 4.9 % 3.7 % 2.5 % 3.1 % Net amount at risk (5) $ — $ — $ 32.0 $ — $ — Cash surrender value $ 43.3 $ 59.5 $ 4,468.2 $ 428.4 $ 31.4 ($ in millions) Three Months Ended March 31, 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) $ 3.6 $ (0.2) $ 54.9 $ 5.1 $ 1.1 Surrenders and withdrawals (2) (0.4) (0.9) (98.1) (13.9) (0.1) Benefit payments (3) — (0.5) (19.1) (0.6) (1.7) Net transfers from (to) separate account — — 6.6 (0.9) — Interest credited (4) — 0.8 40.1 — 0.3 Other (0.9) — 1.9 (1.6) (0.2) Balance at March 31, 2023 $ 49.9 $ 63.5 $ 4,577.4 $ 498.4 $ 33.8 Weighted-average crediting rate 0.1 % 5.0 % 3.6 % — % 3.0 % Net amount at risk (5) $ — $ — $ 39.5 $ — $ — Cash surrender value $ 32.9 $ 62.8 $ 4,540.9 $ 486.7 $ 33.7 (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. The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets: ($ in millions) March 31, 2024 December 31, 2023 Indexed universal life $ 61.0 $ 57.8 Experience Life 60.1 61.2 Fixed account annuities 4,519.9 4,556.0 Fixed indexed account annuities 437.4 449.0 SPIA (non-life contingent) 31.6 32.6 Reconciling items (1) 27.6 30.4 Total $ 5,137.6 $ 5,187.0 (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) March 31, 2024 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% $ 22.4 $ 114.3 $ 506.5 $ 216.5 $ 859.7 Equal to 2% but less than 3% 132.2 101.2 77.1 107.8 418.3 Equal to 3% but less than 4% 546.4 42.2 0.7 — 589.3 Equal to 4% but less than 5% 2,644.1 — — — 2,644.1 5% or higher 85.6 — — — 85.6 Total $ 3,430.7 $ 257.7 $ 584.3 $ 324.3 $ 4,597.0 ($ in millions) December 31, 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% $ 36.7 $ 159.8 $ 489.4 $ 200.2 $ 886.1 Equal to 2% but less than 3% 162.9 77.9 65.8 76.1 382.7 Equal to 3% but less than 4% 571.3 36.9 0.7 — 609.0 Equal to 4% but less than 5% 2,670.5 — — — 2,670.5 5% or higher 86.9 — — — 86.9 Total $ 3,528.3 $ 274.6 $ 555.9 $ 276.3 $ 4,635.2 (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 March 31, 2024 December 31, 2023 Balance, beginning of year $ 3,294.1 $ 2,792.3 Deposits 59.3 234.2 Withdrawals (69.7) (213.4) Net transfers (1.1) (15.5) Fees and charges (12.3) (37.6) Market appreciation (depreciation) 246.6 541.5 Other — (7.4) Balance, end of period $ 3,516.9 $ 3,294.1 (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 months ended March 31, 2024 and 2023, respectively: ($ in millions) Three Months Ended 2024 2023 Balance, beginning of period $ (3.9) $ 0.2 Balance, beginning of period, before effects of changes in the instrument-specific credit risk (4.5) — Changes in market risk benefits (1) (2.3) 0.9 Balance, end of period (2) $ (6.8) $ 0.9 Effect of changes in the instrument-specific credit risk 0.5 0.4 Balance, end of period $ (6.3) $ 1.3 Net amount at risk (3) $ 16.6 $ 38.3 Weighted-average attained age of contract holders 62 63 (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 March 31, 2024 As of December 31, 2023 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (8.3) $ 2.0 $ (6.3) $ (6.7) $ 2.8 $ (3.9) Deferred Acquisition Costs The following tables roll-forward DAC for the periods indicated: ($ in millions) Three Months Ended March 31, 2024 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 22.3 $ 32.6 $ 5.7 $ 7.4 $ 16.8 $ 8.2 $ 214.0 Capitalizations 0.7 1.2 0.1 0.2 0.7 0.8 3.9 Amortization expense (0.3) (0.9) (0.1) (0.1) (0.3) (0.2) (3.7) Experience adjustment (0.1) — — — (0.1) (0.1) (1.3) Balance, end of period $ 22.6 $ 32.9 $ 5.7 $ 7.5 $ 17.1 $ 8.7 $ 212.9 ($ in millions) Three Months Ended March 31, 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 0.6 1.3 — 0.2 0.5 0.6 4.0 Amortization expense (0.3) (0.6) — (0.1) (0.2) (0.1) (3.7) Experience adjustment — — — — — — (1.7) Balance, end of period $ 21.2 $ 30.7 $ 5.8 $ 6.8 $ 15.7 $ 6.7 $ 219.7 The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: ($ in millions) March 31, 2024 December 31, 2023 Whole life $ 22.6 $ 22.3 Term life 32.9 32.6 Experience life 5.7 5.7 Limited pay whole life 7.5 7.4 Indexed universal life 17.1 16.8 Supplemental health 8.7 8.2 Total annuities 212.9 214.0 Reconciling item (1) 29.9 29.3 Total $ 337.3 $ 336.3 (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 first quarter of 2024 and 2023, 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. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Net premiums written and contract deposits (2) $ 386.4 $ 18.1 $ 7.3 $ 375.6 Net premiums and contract charges earned 288.0 19.8 7.0 275.2 Benefits, claims and settlement expenses 186.9 14.6 4.0 176.3 Three months ended March 31, 2023 Net premiums written and contract deposits (2) $ 367.8 $ 16.6 $ 10.4 $ 361.6 Net premiums and contract charges earned 264.0 18.5 10.4 255.9 Benefits, claims and settlement expenses 192.9 12.7 3.0 183.2 (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 | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Net premiums and contract charges earned Property & Casualty $ 173.2 $ 152.4 Life & Retirement 37.8 37.7 Supplemental & Group Benefits 64.2 65.8 Total $ 275.2 $ 255.9 Net investment income Property & Casualty $ 12.3 $ 4.0 Life & Retirement 85.8 87.9 Supplemental & Group Benefits 7.8 9.1 Corporate & Other — — Intersegment eliminations (0.5) (0.6) Total $ 105.4 $ 100.4 Net income (loss) Property & Casualty $ 10.6 $ (11.6) Life & Retirement 11.7 14.0 Supplemental & Group Benefits 11.0 14.0 Corporate & Other (6.8) (9.8) Total $ 26.5 $ 6.6 ($ in millions) March 31, 2024 December 31, 2023 Assets Property & Casualty $ 1,229.2 $ 1,218.1 Life & Retirement 11,568.3 11,365.0 Supplemental & Group Benefits 1,319.4 1,338.8 Corporate & Other 184.7 190.4 Intersegment eliminations (65.3) (62.4) Total $ 14,236.3 $ 14,049.9 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
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, January 1, 2024 $ (328.3) $ 21.9 $ (7.6) $ (314.0) Other comprehensive income (loss) before reclassifications (20.5) 41.4 — 20.9 Amounts reclassified from AOCI (2) 0.8 — — 0.8 Net current period other comprehensive income (loss) (19.7) 41.4 — 21.7 Ending balance, March 31, 2024 $ (348.0) $ 63.3 $ (7.6) $ (292.3) Beginning balance, January 1, 2023 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Other comprehensive income (loss) before reclassifications 91.3 (41.2) — 50.1 Amounts reclassified from AOCI (2) 1.9 — — 1.9 Net current period other comprehensive income (loss) 93.2 (41.2) — 52.0 Ending balance, March 31, 2023 $ (356.4) $ 17.8 $ (8.8) $ (347.4) (1) All amounts are net of tax. (2) The pretax amounts reclassified from AOCI, $(1.0) million and $(2.4) million, are included in Net investment gains (losses) and the related income tax benefits, $(0.2) million and $(0.5) million, are included in income tax expense in the Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, respectively. Comparative information for elements that are not required to be reclassified in their entirety to net income in the same reporting period is disclosed in Note 2. |
Supplemental Consolidated Cash
Supplemental Consolidated Cash and Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Consolidated Cash and Cash Flow Information | Supplemental Consolidated Cash and Cash Flow Information ($ in millions) March 31, 2024 December 31, 2023 Cash $ 19.8 $ 29.0 Restricted cash 0.6 0.7 Total cash and restricted cash reported in the Consolidated Balance Sheets $ 20.4 $ 29.7 ($ in millions) Three Months Ended 2024 2023 Cash paid for: Interest $ 11.0 $ 1.2 Income taxes — 0.1 Non-cash activities were not material for the three months ended March 31, 2024 and 2023, respectively. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2024 | |
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 Interim Report on Form 10-Q, except as noted below, the Company does not have pending litigation from which there is a reasonable possibility of material loss. In 2023, the Horace Mann Insurance Company (HMIC) was named as a defendant in one lawsuit and received various demands for reimbursement and notices of claims related to legacy, long-tail commercial lines claims, including asbestos, environmental, and sexual molestation claims. It is alleged that HMIC reinsured certain commercial lines policies as a member of various insurance pooling arrangements in the late 1960s and early 1970s. The related policies were written prior to the 1975 acquisition of Horace Mann by INA discussed in Part I - Item 1 of the Annual Report on Form 10-K. HMEC’s available records indicate that on January 1, 1975, HMIC entered a quota share retrocession treaty with INA. It is the Company’s understanding that claims arising under these legacy policies were handled by various third parties pursuant to the terms of that treaty and its subsequent amendments entered into on behalf of HMIC. Ultimately, after amendments to the treaty and various corporate transactions involving the reinsurer, these obligations were assumed by companies that were affiliated with R&Q Reinsurance Company (R&Q). The matters noted above arose following the March 23, 2023, Order of Liquidation in Pennsylvania of R&Q. HMIC is defending itself against the pending litigation and is in the process of investigating and evaluating the other demands and claims notices under a complete reservation of rights. In addition, in order to preserve its rights, HMIC submitted a proof of claim in the pending R&Q liquidation proceeding. The amounts claimed against HMIC, if successful, could be material. However, based on the preliminary nature of the matters, the information available to date and considering the legal and factual challenges to the litigation and claims, it is not possible to provide a reasonable estimate of any resultant payment. Investment Commitments The Company has outstanding commitments to fund investments primarily in limited partnership interests. Such unfunded commitments were $524.6 million and $502.6 million as of March 31, 2024 and December 31, 2023, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ 26.5 | $ 6.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Marita Zuraitis [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three months ended March 31, 2024, Marita Zuraitis adopted a new 10b5-1 plan. The Plan was adopted on March 14, 2024. The Plan expires on the earlier of March 31, 2025, or upon execution of all trades or expiration of all orders relating to such trades. The Plan allows for the sale of up to 32,000 shares and the exercise of up to 28,051 vested options. |
Name | Marita Zuraitis |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 14, 2024 |
Arrangement Duration | 382 days |
Marita Zuraitis Trading Arrangement, Shares [Member] | Marita Zuraitis [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 32,000 |
Marita Zuraitis Trading Arrangement, Vested Options [Member] | Marita Zuraitis [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 28,051 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. The results of operations for the three months ended March 31, 2024 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, 2023. 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 and 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, valuation of future policy benefit reserves, and valuation of liabilities for property and casualty unpaid claims and claim expense reserves. |
Future Adoption of New Accounting Standards | Future Adoption of New Accounting Standards Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 includes: 1) a requirement to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, 2) a requirement to disclose an amount for other segment items by reportable segment and a description of its composition, 3) a requirement to disclose a reportable segments profit or loss and assets currently required by Topic 280 in interim periods, 4) clarifies that in addition to the measure that is most consistent with the measurement principles under generally accepted accounting principles (GAAP), a public entity is not precluded from reporting additional measures of a segment's profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources, and 5) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This guidance will be effective for the Company for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the Company for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Components of Net Investment | The components of net investment income for the following periods were as follows: ($ in millions) Three Months Ended 2024 2023 Fixed maturity securities $ 70.4 $ 67.7 Equity securities 1.2 2.7 Limited partnership interests 6.2 4.4 Short-term and other investments 4.7 3.5 Investment expenses (2.6) (3.6) Net investment income - investment portfolio 79.9 74.7 Investment income - deposit asset on reinsurance 25.5 25.7 Total net investment income $ 105.4 $ 100.4 |
Schedule of Net Investment Gains (Losses) | Net investment gains (losses) for the following periods were as follows: ($ in millions) Three Months Ended 2024 2023 Fixed maturity securities $ (1.0) $ (2.4) Equity securities 2.6 (1.0) Short-term investments and other 0.6 (0.5) Net investment gains (losses) $ 2.2 $ (3.9) The breakdown of net investment gains (losses) by transaction type for the following periods were as follows: ($ in millions) Three Months Ended 2024 2023 Credit loss impairments $ (0.9) $ — Intent-to-sell impairments — — Total impairments (0.9) — Sales and other, net (0.1) (2.4) Change in fair value - equity securities 2.6 (1.0) Change in fair value and gains (losses) realized on settlements - derivatives 0.6 (0.5) Net investment gains (losses) $ 2.2 $ (3.9) |
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 2024 2023 Beginning balance $ 1.2 $ 1.2 Credit losses on fixed maturity securities for which credit losses were not previously reported 0.9 — Net increase related to credit losses previously reported — — Reduction of credit allowances related to sales — — Write-offs — — Ending balance $ 2.1 $ 1.2 |
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 March 31, 2024 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 746.5 $ 2.9 $ 71.7 $ 677.7 Other, including U.S. Treasury securities 457.6 0.4 66.8 391.2 Municipal bonds 1,282.2 22.6 97.3 1,207.5 Foreign government bonds 23.1 — 1.2 21.9 Corporate bonds 2,041.1 18.5 229.7 1,829.9 Other asset-backed securities 1,234.9 12.3 32.7 1,214.5 Totals $ 5,785.4 $ 56.7 $ 499.4 $ 5,342.7 December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 713.4 $ 4.4 $ 64.6 $ 653.2 Other, including U.S. Treasury securities 450.8 0.8 62.8 388.8 Municipal bonds 1,333.4 28.6 91.9 1,270.1 Foreign government bonds 23.1 — 1.0 22.1 Corporate bonds 1,969.9 23.1 220.3 1,772.7 Other asset-backed securities 1,162.3 6.0 39.9 1,128.4 Totals $ 5,652.9 $ 62.9 $ 480.5 $ 5,235.3 |
Schedule of Fair Value and Gross Unrealized Losses of Fixed Maturity Securities and Equity Securities in an Unrealized Loss Position | ($ in millions) 12 Months or Less More than 12 Months Total Fair Value Gross Fair Value Gross Fair Value Gross March 31, 2024 Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 63.1 $ 1.0 $ 470.4 $ 70.7 $ 533.5 $ 71.7 Other 100.8 1.6 276.6 65.2 377.4 66.8 Municipal bonds 111.7 1.6 704.9 95.7 816.6 97.3 Foreign government bonds 1.4 0.1 20.5 1.1 21.9 1.2 Corporate bonds 252.8 23.5 1,147.4 206.2 1,400.2 229.7 Other asset-backed securities 52.0 0.6 535.4 32.1 587.4 32.7 Total $ 581.8 $ 28.4 $ 3,155.2 $ 471.0 $ 3,737.0 $ 499.4 Number of positions with a gross unrealized loss 298 2,213 2,511 Fair value as a percentage of total fixed maturity securities at fair value 10.9 % 59.1 % 70.0 % December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 45.3 $ 0.8 $ 458.5 $ 63.8 $ 503.8 $ 64.6 Other 39.5 0.4 288.0 62.4 327.5 62.8 Municipal bonds 64.5 0.9 724.6 91.0 789.1 91.9 Foreign government bonds 1.5 — 20.6 1.0 22.1 1.0 Corporate bonds 195.0 25.4 1,171.3 194.9 1,366.3 220.3 Other asset-backed securities 133.4 0.8 752.5 39.1 885.9 39.9 Total $ 479.2 $ 28.3 $ 3,415.5 $ 452.2 $ 3,894.7 $ 480.5 Number of positions with a gross unrealized loss 195 2,305 2,500 Fair value as a percentage of total fixed maturity securities at fair value 9.2 % 65.2 % 74.4 % |
Schedule of 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 March 31, 2024 December 31, 2023 Credit Rating AAA 191 226 AA 984 1,006 A 415 423 BBB 437 448 Total investment grade 2,027 2,103 BB 82 93 B 34 39 CCC or lower 8 7 Total below investment grade 124 139 Not rated 62 63 Totals: 2,213 2,305 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) March 31, 2024 Amortized Fair Percent of Total Fair Value Estimated expected maturity: Due in 1 year or less $ 287.5 $ 283.8 5.3 % Due after 1 year through 5 years 1,480.5 1,438.2 26.9 % Due after 5 years through 10 years 1,496.8 1,425.0 26.7 % Due after 10 years through 20 years 1,475.8 1,321.7 24.7 % Due after 20 years 1,044.8 874.0 16.4 % Total $ 5,785.4 $ 5,342.7 100.0 % Average option-adjusted duration, in years 5.9 |
Schedule of 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 2024 2023 Fixed maturity securities Proceeds received $ 88.0 $ 62.7 Gross gains realized 1.3 0.3 Gross losses realized (1.4) (2.7) Equity securities Proceeds received $ — $ — Gross gains realized — — Gross losses realized — — |
Schedule of 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 2024 2023 Net unrealized investment gains (losses) Beginning of period $ (328.3) $ (449.6) Change in net unrealized investment gains (20.5) 91.3 Reclassification of net investment losses 0.8 1.9 End of period $ (348.0) $ (356.4) |
Schedule of Carrying Amounts of Equity Method Limited Partnership Interests | The carrying amounts of EMA limited partnership interests were as follows: ($ in millions) March 31, 2024 December 31, 2023 Commercial mortgage loan funds $ 646.2 $ 660.8 Real estate equity funds 103.3 109.2 Private equity funds 95.5 92.7 Infrastructure equity funds 78.0 77.2 Infrastructure debt funds 62.4 59.1 Other funds (1) 133.9 139.8 Total $ 1,119.3 $ 1,138.8 (1) Other funds consist primarily of limited partnership interests in corporate mezzanine, venture capital and private credit funds. |
Schedule of 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 March 31, 2024 Asset derivatives: Free-standing derivatives $ 23.1 $ — $ 23.1 $ — $ 23.6 $ (0.5) December 31, 2023 Asset derivatives: Free-standing derivatives $ 19.0 $ — $ 19.0 $ — $ 18.5 $ 0.5 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule 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 three months ended March 31, 2024 and 2023, there were no transfers between Level 1 and Level 2. As of March 31, 2024, Level 3 invested assets comprised 9.2% of the Company’s total investment portfolio at fair value. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 March 31, 2024 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 677.7 $ 677.7 $ — $ 677.7 $ — Other, including U.S. Treasury securities 391.2 391.2 45.0 346.2 — Municipal bonds 1,207.5 1,207.5 — 1,134.3 73.2 Foreign government bonds 21.9 21.9 — 21.9 — Corporate bonds 1,829.9 1,829.9 8.6 1,475.8 345.5 Other asset-backed securities 1,214.5 1,214.5 — 1,125.8 88.7 Total fixed maturity securities 5,342.7 5,342.7 53.6 4,781.7 507.4 Equity securities 84.7 84.7 18.1 64.1 2.5 Short-term investments 69.4 69.4 69.4 — — Other investments 23.1 23.1 — 23.1 — Totals $ 5,519.9 $ 5,519.9 $ 141.1 $ 4,868.9 $ 509.9 Separate Account variable annuity assets (1) $ 3,516.9 $ 3,516.9 $ 3,516.9 $ — $ — Financial Liabilities (2) $ 85.0 $ 85.0 $ — $ 4.2 $ 80.8 December 31, 2023 Financial Assets Investments Fixed maturity securities U.S. Government and federally Mortgage-backed securities $ 653.2 $ 653.2 $ — $ 653.2 $ — Other, including U.S. Treasury securities 388.8 388.8 45.6 343.2 — Municipal bonds 1,270.1 1,270.1 — 1,196.1 74.0 Foreign government bonds 22.1 22.1 — 22.1 — Corporate bonds 1,772.7 1,772.7 10.1 1,420.1 342.5 Other asset-backed securities 1,128.4 1,128.4 — 1,030.9 97.5 Total fixed maturity securities 5,235.3 5,235.3 55.7 4,665.6 514.0 Equity securities 86.2 86.2 17.9 63.8 4.5 Short-term investments 132.9 132.9 132.9 — — Other investments 19.0 19.0 — 19.0 — Totals $ 5,473.4 $ 5,473.4 $ 206.5 $ 4,748.4 $ 518.5 Separate Account (variable annuity) assets (1) $ 3,294.1 $ 3,294.1 $ 3,294.1 $ — $ — Financial Liabilities (2) $ 86.0 $ 86.0 $ — $ 3.6 $ 82.4 (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. |
Schedule of 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, January 1, 2024 $ 74.0 $ 342.5 $ 97.5 $ 514.0 $ 4.5 $ 518.5 $ 82.4 Transfers into Level 3 (3) — — — — — — — Transfers out of Level 3 (3) — (4.4) — (4.4) — (4.4) — Total gains or losses Net investment gains (losses) included in net income — — — — 0.1 0.1 — Net investment (gains) losses included in net income related to financial liabilities — — — — — — 1.3 Net unrealized gains (losses) included in OCI (0.7) (0.6) 2.4 1.1 — 1.1 (0.1) Purchases — 14.1 — 14.1 — 14.1 — Issuances — — — — — — 1.4 Sales — — — — — — — Settlements — — — — — — — Paydowns, maturities and distributions (0.1) (6.1) (11.2) (17.4) (2.1) (19.5) (4.2) Ending balance, March 31, 2024 $ 73.2 $ 345.5 $ 88.7 $ 507.4 $ 2.5 $ 509.9 $ 80.8 Beginning balance, January 1, 2023 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.0 Transfers into Level 3 (3) — 5.9 0.4 6.3 — 6.3 — Transfers out of Level 3 (3) — — — — — — — Total gains or losses Net investment gains (losses) included in net income — — — — — — — Net investment (gains) losses included in net income related to financial liabilities — — — — — — 0.2 Net unrealized gains (losses) included in OCI 1.2 0.9 (0.4) 1.7 — 1.7 — Purchases — 19.0 0.2 19.2 — 19.2 — Issuances — — — — — — 2.1 Sales — (2.6) — (2.6) — (2.6) — Settlements — — — — — — — Paydowns, maturities and distributions (0.2) (0.5) (3.2) (3.9) — (3.9) (3.4) Ending balance, March 31, 2023 $ 55.4 $ 284.0 $ 104.6 $ 444.0 $ 2.0 $ 446.0 $ 89.9 (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 months ended March 31, 2024 and 2023 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. |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources: ($ in millions) Total Internal External March 31, 2024 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 73.2 — 73.2 Corporate bonds 345.5 185.5 160.0 Other asset-backed securities 88.7 — 88.7 Total fixed maturity securities 507.4 185.5 321.9 Equity securities 2.5 — 2.5 Totals $ 509.9 $ 185.5 $ 324.4 Financial Liabilities (1) $ 80.8 $ 80.8 $ — December 31, 2023 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 74.0 — 74.0 Corporate bonds 342.5 180.4 162.1 Other asset-backed securities 97.5 — 97.5 Total fixed maturity securities 514.0 180.4 333.6 Equity securities 4.5 — 4.5 Totals $ 518.5 $ 180.4 $ 338.1 Financial Liabilities (1) $ 82.4 $ 82.4 $ — (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. External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available. 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 with Level 3. ($ in millions) Fair Value as of March 31, 2024 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 185.5 discounted cash flow yield 4.5% - 16.2% decrease discounted cash flow option adjusted spread 116 bps - 852 bps decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 87.1 discounted cash flow lapse rate 5.9% decrease mortality multiplier (2) 69.4% decrease option budget 0.9% - 3.8% increase non-performance adjustment (3) 5.0% decrease Net MRBs $ (6.3) discounted cash flow lapse rate 5.9% decrease mortality multiplier (2) 69.4% increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) 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: March 31, 2024 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.2% 2.1 % — % N.M. Expected experience 0.7 % 0.1% - 0.4% 1.7 % 0.3 % N.M. Lapses Actual experience 3.4 % 3.6% - 22.0% 3.4 % 3.6 % N.M. Expected experience 4.3 % 5.1% - 6.9% 3.0 % 4.6 % N.M. March 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.3% 1.9 % — % N.M. Expected experience 0.7 % 0.1% - 0.6% 1.6 % 0.2 % N.M. Lapses Actual experience 3.6 % 5.6% - 8.3% 3.4 % 3.6 % N.M. Expected experience 4.6 % 2.8% - 5.6% 3.0 % 5.1 % N.M. |
Schedule of Fair Value Assets and Liabilities Measured on Nonrecurring Basis | ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 March 31, 2024 Financial Assets Other investments $ 218.7 $ 222.0 $ — $ 34.9 $ 187.1 Deposit asset on reinsurance 2,472.4 2,192.2 — — 2,192.2 Financial Liabilities Policyholders' account balances 5,052.6 4,657.8 — — 4,657.8 Reverse repurchase agreement 50.0 51.8 — 51.8 — Other policyholder funds 941.1 941.1 — 933.7 7.4 Long-term debt 546.2 569.8 — 569.8 — December 31, 2023 Financial Assets Other investments $ 218.4 $ 221.7 $ — $ 33.8 $ 187.9 Deposit asset on reinsurance 2,496.6 2,259.6 — — 2,259.6 Financial Liabilities Policyholders' account balances 4,996.3 4,861.8 — — 4,861.8 Other policyholder funds 916.0 916.0 — 908.7 7.3 Long-term debt 546.0 571.4 — 571.4 — |
Short-Duration Insurance Cont_2
Short-Duration Insurance Contracts (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Property & Casualty Beginning gross reserves $ 416.8 $ 388.7 Less: reinsurance recoverables 104.0 100.8 Net reserves, beginning of period (1) 312.8 287.9 Incurred claims and claim expenses: Claims occurring in the current period 124.7 128.8 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) — — Total claims and claim expenses incurred 124.7 128.8 Claims and claim expense payments for claims occurring during: Current period 44.6 40.6 Prior periods 78.3 79.6 Total claims and claim expense payments 122.9 120.2 Net reserves, end of period (1) 314.6 296.5 Plus: reinsurance recoverables 103.6 101.3 Ending gross reserves $ 418.2 $ 397.8 (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. 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 2024 2023 Group Benefits Beginning gross reserves $ 116.6 $ 121.6 Less: reinsurance recoverables 27.7 27.9 Net reserves, beginning of period (1) 88.9 93.7 Incurred claims and claim expenses: Claims occurring in the current period 20.2 20.2 Increase (decrease) in estimated reserves for claims occurring in prior periods (2) (6.1) (4.9) Total claims and claim expenses incurred 14.1 15.3 Claims and claim expense payments for claims occurring during: Current period 3.9 4.2 Prior periods 12.4 12.4 Total claims and claim expense payments 16.3 16.6 Net reserves, end of period (1) 86.7 92.3 Plus: reinsurance recoverables 27.6 28.0 Ending gross reserves $ 114.3 $ 120.3 (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 March 31, 2024 As of December 31, 2023 Ending gross reserves Property & Casualty $ 418.2 $ 416.8 Group Benefits 114.3 116.6 Total short-duration insurance contracts 532.5 533.4 Other than short-duration (1) 51.9 48.3 Total unpaid claims and claims expenses $ 584.4 $ 581.7 (1) |
Long-Duration Insurance Contr_2
Long-Duration Insurance Contracts (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefit, Activity | 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 March 31, 2024 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, 2024 $ 223.2 $ 240.0 $ 71.7 $ 32.2 $ 182.0 $ — January 1, 2024 balance at original discount rate 247.1 256.6 67.0 33.9 213.4 — Effect of: Change in cash flow assumptions — — — — — — Actual variances from expected experience 0.3 0.3 (0.1) 0.2 0.2 — Adjusted balance at January 1, 2024 247.4 256.9 66.9 34.1 213.6 — Issuances (3) 2.5 6.1 — 1.0 5.6 0.6 Interest accruals (4) 1.9 2.6 0.9 0.3 1.6 — Net premiums collected (5) (7.8) (6.2) (1.7) (1.2) (6.2) (0.6) March 31, 2024 balance at original discount rate 244.0 259.4 66.1 34.2 214.6 — Effect of changes in discount rate assumptions (28.5) (21.7) 2.9 (2.3) (35.1) — Balance at March 31, 2024 215.5 237.7 69.0 31.9 179.5 — Present value of expected future policy benefits: Balance at January 1, 2024 522.0 370.1 883.0 89.6 427.6 104.2 January 1, 2024 balance at original discount rate 592.1 405.4 797.5 105.6 517.9 111.4 Effect of: Changes in cash flow assumptions — — — — — — Actual variances from expected experience 0.5 1.0 — 0.1 0.1 0.3 Adjusted balance at January 1, 2024 592.6 406.4 797.5 105.7 518.0 111.7 Issuances 2.5 6.2 — 1.0 5.6 0.6 Interest accruals 4.8 3.9 11.8 1.0 3.6 1.1 Benefit payments (6) (7.9) (5.4) (17.6) (0.4) (16.7) (3.1) March 31, 2024 balance at original discount rate 592.0 411.1 791.7 107.3 510.5 110.3 Effect of changes in discount rate assumptions (88.2) (45.0) 57.9 (20.1) (98.9) (9.0) Balance at March 31, 2024 503.8 366.1 849.6 87.2 411.6 101.3 Net liability for future policy benefits 288.3 128.3 780.6 55.3 231.8 101.3 Less: Reinsurance recoverable (62.5) (19.0) (1.1) (1.1) (3.8) (3.5) Net liability for future policy benefits, after reinsurance recoverable 225.8 109.3 779.5 54.2 228.0 97.8 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at March 31, 2024 $ 225.8 $ 109.3 $ 779.5 $ 54.2 $ 228.0 $ 97.8 (1) Experience Life contains both whole life and term elements. (2) As of March 31, 2024, the net LFPB for Supplemental Health was $113.1 million for cancer, $20.7 million for accident, $26.5 million for disability and $122.6 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2023 were as follows: ($ 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 — (16.8) 3.7 (0.2) 6.5 — Actual variances from expected experience 3.8 (2.7) 0.7 1.0 (1.6) — Adjusted balance at January 1, 2023 249.7 245.9 69.9 33.2 210.0 — Issuances (3) 10.8 25.2 — 4.3 19.4 5.6 Interest accruals (4) 7.2 10.3 3.7 1.2 6.0 — Net premiums collected (5) (20.6) (24.8) (6.6) (4.8) (22.0) (5.6) December 31, 2023 balance at original discount rate 247.1 256.6 67.0 33.9 213.4 — Effect of changes in discount rate assumptions (23.9) (16.6) 4.7 (1.7) (31.4) — Balance at December 31, 2023 223.2 240.0 71.7 32.2 182.0 — 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 (0.6) (16.7) 5.0 (0.2) 8.9 — Actual variances from expected experience 4.0 1.3 1.1 1.0 (2.4) (0.8) Adjusted balance at January 1, 2023 585.3 385.6 811.3 99.4 543.6 112.6 Issuances 10.7 25.8 — 4.3 19.4 6.3 Interest accruals 19.0 15.2 47.4 3.9 14.4 4.4 Benefit payments (6) (22.9) (21.2) (61.2) (2.0) (59.5) (11.9) December 31, 2023 balance at original discount rate 592.1 405.4 797.5 105.6 517.9 111.4 Effect of changes in discount rate assumptions (70.1) (35.3) 85.5 (16.0) (90.3) (7.2) Balance at December 31, 2023 522.0 370.1 883.0 89.6 427.6 104.2 Net liability for future policy benefits 298.8 130.2 811.3 57.4 245.6 104.2 Less: Reinsurance recoverable (64.3) (19.1) (1.0) (1.2) (4.0) (3.6) Net liability for future policy benefits, after reinsurance recoverable 234.5 111.1 810.3 56.2 241.6 100.6 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at December 31, 2023 $ 234.5 $ 111.1 $ 810.3 $ 56.2 $ 241.6 $ 100.6 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2023, the net LFPB for Supplemental Health was $92.7 million for cancer, $21.4 million for accident, $23.5 million for disability and $104.0 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): ($ in millions) Gross premiums or assessments Three Months Ended March 31, 2024 2023 Whole life $ 6.9 $ 6.6 Term life 11.2 10.8 Experience life 7.7 8.2 Limited-pay whole life 1.8 1.6 Supplemental health 30.4 29.7 SPIA (life contingent) 1.2 2.2 Total $ 59.2 $ 59.1 ($ in millions) Interest expense Three Months Ended March 31, 2024 2023 Whole life $ 3.0 $ 2.9 Term life 1.3 1.2 Experience life 10.8 11.0 Limited-pay whole life 0.7 0.6 Supplemental health 2.0 2.2 SPIA (life contingent) 1.1 1.1 Total $ 18.9 $ 19.0 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 March 31, 2024 As of December 31, 2023 Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 473.5 $ 323.0 $ 478.8 $ 325.0 Expected future benefits and expenses 1,151.5 592.0 1,152.8 592.1 Term life Expected future gross premiums 695.7 452.3 689.0 449.4 Expected future benefits and expenses 694.7 411.1 682.7 405.4 Experience Life Expected future gross premiums 519.4 290.6 530.0 296.1 Expected future benefits and expenses 1,684.3 791.7 1,703.1 797.5 Limited-pay whole life Expected future gross premiums 65.6 49.6 64.7 49.1 Expected future benefits and expenses 249.2 107.3 244.9 105.6 Supplemental health Expected future gross premiums 1,619.2 1,187.4 1,624.1 1,192.5 Expected future benefits and expenses 712.7 510.5 719.4 517.9 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 155.0 110.3 156.1 111.4 The following table provides the weighted-average durations of LFPB, in years: As of March 31, 2024 2023 Whole life 17.9 18.0 Term life 16.6 17.0 Experience life 10.3 11.0 Limited-pay whole life 21.9 23.0 Supplemental health 10.8 10.2 SPIA (life contingent) 7.6 8.0 The following table provides ranges of the weighted-average interest rates for LFPB: As of March 31, 2024 2023 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 4.9% Current discount rate 4.6% - 5.4% 4.7% - 5.0% Term life Interest accretion rate 4.2% - 4.2% 4.1% - 4.3% Current discount rate 5.2% - 5.3% 4.9% - 5.0% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.3 % 5.0 % Limited-pay whole life Interest accretion rate 4.0 % 3.9 % Current discount rate 5.4 % 5.0 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.3% - 5.4% 5.0% - 5.2% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.1% Current discount rate 5.2% - 5.2% 4.9% - 5.0% |
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) March 31, 2024 December 31, 2023 Whole life $ 288.3 $ 298.8 Term life 128.3 130.2 Experience life 780.6 811.3 Limited-pay whole life 55.3 57.4 Supplemental health 231.8 245.6 SPIA (life contingent) 101.3 104.2 Limited-pay whole life DPL 4.3 4.1 SPIA (life contingent) DPL 1.3 1.3 Reconciling items (1) 110.9 108.9 Total $ 1,702.1 $ 1,761.8 (1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves. |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources: ($ in millions) Total Internal External March 31, 2024 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 73.2 — 73.2 Corporate bonds 345.5 185.5 160.0 Other asset-backed securities 88.7 — 88.7 Total fixed maturity securities 507.4 185.5 321.9 Equity securities 2.5 — 2.5 Totals $ 509.9 $ 185.5 $ 324.4 Financial Liabilities (1) $ 80.8 $ 80.8 $ — December 31, 2023 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 74.0 — 74.0 Corporate bonds 342.5 180.4 162.1 Other asset-backed securities 97.5 — 97.5 Total fixed maturity securities 514.0 180.4 333.6 Equity securities 4.5 — 4.5 Totals $ 518.5 $ 180.4 $ 338.1 Financial Liabilities (1) $ 82.4 $ 82.4 $ — (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. External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available. 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 with Level 3. ($ in millions) Fair Value as of March 31, 2024 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 185.5 discounted cash flow yield 4.5% - 16.2% decrease discounted cash flow option adjusted spread 116 bps - 852 bps decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 87.1 discounted cash flow lapse rate 5.9% decrease mortality multiplier (2) 69.4% decrease option budget 0.9% - 3.8% increase non-performance adjustment (3) 5.0% decrease Net MRBs $ (6.3) discounted cash flow lapse rate 5.9% decrease mortality multiplier (2) 69.4% increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) 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: March 31, 2024 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.2% 2.1 % — % N.M. Expected experience 0.7 % 0.1% - 0.4% 1.7 % 0.3 % N.M. Lapses Actual experience 3.4 % 3.6% - 22.0% 3.4 % 3.6 % N.M. Expected experience 4.3 % 5.1% - 6.9% 3.0 % 4.6 % N.M. March 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.3% 1.9 % — % N.M. Expected experience 0.7 % 0.1% - 0.6% 1.6 % 0.2 % N.M. Lapses Actual experience 3.6 % 5.6% - 8.3% 3.4 % 3.6 % N.M. Expected experience 4.6 % 2.8% - 5.6% 3.0 % 5.1 % N.M. |
Schedule of Policyholder Account Balance | 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 March 31, 2024 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2024 $ 57.8 $ 61.2 $ 4,556.0 $ 449.0 $ 32.6 Premiums received (1) $ 3.9 $ (0.1) $ 49.0 $ 3.6 $ 0.8 Surrenders and withdrawals (2) (0.5) (1.3) (112.2) (13.3) (0.6) Benefit payments (3) — (0.5) (20.6) (0.8) (1.4) Net transfers from (to) separate account (0.1) — 1.9 (0.8) — Interest credited (4) 0.8 0.7 41.7 2.7 0.2 Other (0.9) 0.1 4.1 (3.0) — Balance at March 31, 2024 $ 61.0 $ 60.1 $ 4,519.9 $ 437.4 $ 31.6 Weighted-average crediting rate 5.6 % 4.9 % 3.7 % 2.5 % 3.1 % Net amount at risk (5) $ — $ — $ 32.0 $ — $ — Cash surrender value $ 43.3 $ 59.5 $ 4,468.2 $ 428.4 $ 31.4 ($ in millions) Three Months Ended March 31, 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) $ 3.6 $ (0.2) $ 54.9 $ 5.1 $ 1.1 Surrenders and withdrawals (2) (0.4) (0.9) (98.1) (13.9) (0.1) Benefit payments (3) — (0.5) (19.1) (0.6) (1.7) Net transfers from (to) separate account — — 6.6 (0.9) — Interest credited (4) — 0.8 40.1 — 0.3 Other (0.9) — 1.9 (1.6) (0.2) Balance at March 31, 2023 $ 49.9 $ 63.5 $ 4,577.4 $ 498.4 $ 33.8 Weighted-average crediting rate 0.1 % 5.0 % 3.6 % — % 3.0 % Net amount at risk (5) $ — $ — $ 39.5 $ — $ — Cash surrender value $ 32.9 $ 62.8 $ 4,540.9 $ 486.7 $ 33.7 (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. The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets: ($ in millions) March 31, 2024 December 31, 2023 Indexed universal life $ 61.0 $ 57.8 Experience Life 60.1 61.2 Fixed account annuities 4,519.9 4,556.0 Fixed indexed account annuities 437.4 449.0 SPIA (non-life contingent) 31.6 32.6 Reconciling items (1) 27.6 30.4 Total $ 5,137.6 $ 5,187.0 (1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs. |
Schedule of 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) March 31, 2024 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% $ 22.4 $ 114.3 $ 506.5 $ 216.5 $ 859.7 Equal to 2% but less than 3% 132.2 101.2 77.1 107.8 418.3 Equal to 3% but less than 4% 546.4 42.2 0.7 — 589.3 Equal to 4% but less than 5% 2,644.1 — — — 2,644.1 5% or higher 85.6 — — — 85.6 Total $ 3,430.7 $ 257.7 $ 584.3 $ 324.3 $ 4,597.0 ($ in millions) December 31, 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% $ 36.7 $ 159.8 $ 489.4 $ 200.2 $ 886.1 Equal to 2% but less than 3% 162.9 77.9 65.8 76.1 382.7 Equal to 3% but less than 4% 571.3 36.9 0.7 — 609.0 Equal to 4% but less than 5% 2,670.5 — — — 2,670.5 5% or higher 86.9 — — — 86.9 Total $ 3,528.3 $ 274.6 $ 555.9 $ 276.3 $ 4,635.2 (1) Excludes products not containing a fixed guaranteed minimum crediting rate. |
Schedule of 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 March 31, 2024 December 31, 2023 Balance, beginning of year $ 3,294.1 $ 2,792.3 Deposits 59.3 234.2 Withdrawals (69.7) (213.4) Net transfers (1.1) (15.5) Fees and charges (12.3) (37.6) Market appreciation (depreciation) 246.6 541.5 Other — (7.4) Balance, end of period $ 3,516.9 $ 3,294.1 (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. |
Schedule of Market Risk Benefit, Activity | The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the three months ended March 31, 2024 and 2023, respectively: ($ in millions) Three Months Ended 2024 2023 Balance, beginning of period $ (3.9) $ 0.2 Balance, beginning of period, before effects of changes in the instrument-specific credit risk (4.5) — Changes in market risk benefits (1) (2.3) 0.9 Balance, end of period (2) $ (6.8) $ 0.9 Effect of changes in the instrument-specific credit risk 0.5 0.4 Balance, end of period $ (6.3) $ 1.3 Net amount at risk (3) $ 16.6 $ 38.3 Weighted-average attained age of contract holders 62 63 (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 March 31, 2024 As of December 31, 2023 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (8.3) $ 2.0 $ (6.3) $ (6.7) $ 2.8 $ (3.9) |
Schedule of Deferred Policy Acquisition Costs | Deferred Acquisition Costs The following tables roll-forward DAC for the periods indicated: ($ in millions) Three Months Ended March 31, 2024 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 22.3 $ 32.6 $ 5.7 $ 7.4 $ 16.8 $ 8.2 $ 214.0 Capitalizations 0.7 1.2 0.1 0.2 0.7 0.8 3.9 Amortization expense (0.3) (0.9) (0.1) (0.1) (0.3) (0.2) (3.7) Experience adjustment (0.1) — — — (0.1) (0.1) (1.3) Balance, end of period $ 22.6 $ 32.9 $ 5.7 $ 7.5 $ 17.1 $ 8.7 $ 212.9 ($ in millions) Three Months Ended March 31, 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 0.6 1.3 — 0.2 0.5 0.6 4.0 Amortization expense (0.3) (0.6) — (0.1) (0.2) (0.1) (3.7) Experience adjustment — — — — — — (1.7) Balance, end of period $ 21.2 $ 30.7 $ 5.8 $ 6.8 $ 15.7 $ 6.7 $ 219.7 The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: ($ in millions) March 31, 2024 December 31, 2023 Whole life $ 22.6 $ 22.3 Term life 32.9 32.6 Experience life 5.7 5.7 Limited pay whole life 7.5 7.4 Indexed universal life 17.1 16.8 Supplemental health 8.7 8.2 Total annuities 212.9 214.0 Reconciling item (1) 29.9 29.3 Total $ 337.3 $ 336.3 (1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Schedule of 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 March 31, 2024 Net premiums written and contract deposits (2) $ 386.4 $ 18.1 $ 7.3 $ 375.6 Net premiums and contract charges earned 288.0 19.8 7.0 275.2 Benefits, claims and settlement expenses 186.9 14.6 4.0 176.3 Three months ended March 31, 2023 Net premiums written and contract deposits (2) $ 367.8 $ 16.6 $ 10.4 $ 361.6 Net premiums and contract charges earned 264.0 18.5 10.4 255.9 Benefits, claims and settlement expenses 192.9 12.7 3.0 183.2 (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) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Summarized Financial Information for These Segments | Summarized financial information for these segments is as follows: ($ in millions) Three Months Ended 2024 2023 Net premiums and contract charges earned Property & Casualty $ 173.2 $ 152.4 Life & Retirement 37.8 37.7 Supplemental & Group Benefits 64.2 65.8 Total $ 275.2 $ 255.9 Net investment income Property & Casualty $ 12.3 $ 4.0 Life & Retirement 85.8 87.9 Supplemental & Group Benefits 7.8 9.1 Corporate & Other — — Intersegment eliminations (0.5) (0.6) Total $ 105.4 $ 100.4 Net income (loss) Property & Casualty $ 10.6 $ (11.6) Life & Retirement 11.7 14.0 Supplemental & Group Benefits 11.0 14.0 Corporate & Other (6.8) (9.8) Total $ 26.5 $ 6.6 ($ in millions) March 31, 2024 December 31, 2023 Assets Property & Casualty $ 1,229.2 $ 1,218.1 Life & Retirement 11,568.3 11,365.0 Supplemental & Group Benefits 1,319.4 1,338.8 Corporate & Other 184.7 190.4 Intersegment eliminations (65.3) (62.4) Total $ 14,236.3 $ 14,049.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, January 1, 2024 $ (328.3) $ 21.9 $ (7.6) $ (314.0) Other comprehensive income (loss) before reclassifications (20.5) 41.4 — 20.9 Amounts reclassified from AOCI (2) 0.8 — — 0.8 Net current period other comprehensive income (loss) (19.7) 41.4 — 21.7 Ending balance, March 31, 2024 $ (348.0) $ 63.3 $ (7.6) $ (292.3) Beginning balance, January 1, 2023 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Other comprehensive income (loss) before reclassifications 91.3 (41.2) — 50.1 Amounts reclassified from AOCI (2) 1.9 — — 1.9 Net current period other comprehensive income (loss) 93.2 (41.2) — 52.0 Ending balance, March 31, 2023 $ (356.4) $ 17.8 $ (8.8) $ (347.4) (1) All amounts are net of tax. (2) The pretax amounts reclassified from AOCI, $(1.0) million and $(2.4) million, are included in Net investment gains (losses) and the related income tax benefits, $(0.2) million and $(0.5) million, are included in income tax expense in the Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, respectively. |
Supplemental Consolidated Cas_2
Supplemental Consolidated Cash and Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash and Cash Equivalents | ($ in millions) March 31, 2024 December 31, 2023 Cash $ 19.8 $ 29.0 Restricted cash 0.6 0.7 Total cash and restricted cash reported in the Consolidated Balance Sheets $ 20.4 $ 29.7 |
Schedule of Restrictions on Cash and Cash Equivalents | ($ in millions) March 31, 2024 December 31, 2023 Cash $ 19.8 $ 29.0 Restricted cash 0.6 0.7 Total cash and restricted cash reported in the Consolidated Balance Sheets $ 20.4 $ 29.7 |
Schedule of Supplemental Cash Flow Information | ($ in millions) Three Months Ended 2024 2023 Cash paid for: Interest $ 11.0 $ 1.2 Income taxes — 0.1 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments (segments) | 4 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Investment Income | ||
Total net investment income | $ 105.4 | $ 100.4 |
Investment Portfolio | ||
Net Investment Income | ||
Investment expenses | (2.6) | (3.6) |
Total net investment income | 79.9 | 74.7 |
Deposit Asset on Reinsurance | ||
Net Investment Income | ||
Total net investment income | 25.5 | 25.7 |
Fixed maturity securities | Investment Portfolio | ||
Net Investment Income | ||
Net investment income | 70.4 | 67.7 |
Equity securities | Investment Portfolio | ||
Net Investment Income | ||
Net investment income | 1.2 | 2.7 |
Limited partnership interests | Investment Portfolio | ||
Net Investment Income | ||
Net investment income | 6.2 | 4.4 |
Short-term and other investments | Investment Portfolio | ||
Net Investment Income | ||
Net investment income | $ 4.7 | $ 3.5 |
Investments - Net Investment Lo
Investments - Net Investment Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Gain (Loss) on Securities | ||
Net investment gains (losses) | $ 2.2 | $ (3.9) |
Fixed maturity securities | ||
Gain (Loss) on Securities | ||
Net investment gains (losses) | (1) | (2.4) |
Equity securities | ||
Gain (Loss) on Securities | ||
Net investment gains (losses) | 2.6 | (1) |
Short-term investments and other | ||
Gain (Loss) on Securities | ||
Net investment gains (losses) | $ 0.6 | $ (0.5) |
Investments - Net Investment Ga
Investments - Net Investment Gains (Losses) by Transaction Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Credit loss impairments | $ (0.9) | $ 0 |
Intent-to-sell impairments | 0 | 0 |
Total impairments | (0.9) | 0 |
Sales and other, net | (0.1) | (2.4) |
Change in fair value - equity securities | 2.6 | (1) |
Change in fair value and gains (losses) realized on settlements - derivatives | 0.6 | (0.5) |
Net investment gains (losses) | $ 2.2 | $ (3.9) |
Investments- Allowance for Cred
Investments- Allowance for Credit Loss Impairments on Fixed Maturity Securities (Details) - Fixed maturity securities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | ||
Beginning balance | $ 1.2 | $ 1.2 |
Credit losses on fixed maturity securities for which credit losses were not previously reported | 0.9 | 0 |
Net increase related to credit losses previously reported | 0 | 0 |
Reduction of credit allowances related to sales | 0 | 0 |
Write-offs | 0 | 0 |
Ending balance | $ 2.1 | $ 1.2 |
Investments - Summary of Fair V
Investments - Summary of Fair Value and Amortized Costs (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Investments [Line Items] | ||
Amortized Cost, net | $ 5,785.4 | $ 5,652.9 |
Fair Value | 5,342.7 | 5,235.3 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 5,785.4 | 5,652.9 |
Gross Unrealized Gains | 56.7 | 62.9 |
Gross Unrealized Losses | 499.4 | 480.5 |
Fair Value | 5,342.7 | 5,235.3 |
Mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 746.5 | 713.4 |
Gross Unrealized Gains | 2.9 | 4.4 |
Gross Unrealized Losses | 71.7 | 64.6 |
Fair Value | 677.7 | 653.2 |
Other, including U.S. Treasury securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 457.6 | 450.8 |
Gross Unrealized Gains | 0.4 | 0.8 |
Gross Unrealized Losses | 66.8 | 62.8 |
Fair Value | 391.2 | 388.8 |
Municipal bonds | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 1,282.2 | 1,333.4 |
Gross Unrealized Gains | 22.6 | 28.6 |
Gross Unrealized Losses | 97.3 | 91.9 |
Fair Value | 1,207.5 | 1,270.1 |
Foreign government bonds | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 23.1 | 23.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1.2 | 1 |
Fair Value | 21.9 | 22.1 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 2,041.1 | 1,969.9 |
Gross Unrealized Gains | 18.5 | 23.1 |
Gross Unrealized Losses | 229.7 | 220.3 |
Fair Value | 1,829.9 | 1,772.7 |
Other asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost, net | 1,234.9 | 1,162.3 |
Gross Unrealized Gains | 12.3 | 6 |
Gross Unrealized Losses | 32.7 | 39.9 |
Fair Value | $ 1,214.5 | $ 1,128.4 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Investments [Line Items] | ||
Securities sold under agreements to repurchase | $ 50 | $ 0 |
Reverse repurchase agreement, cash to value percentage | 95% | |
Investment grade rating | 95.90% | |
Fair Value | $ 5,342.7 | 5,235.3 |
FHLB funding agreements | 929.5 | 904.5 |
Fair Value | ||
Schedule of Investments [Line Items] | ||
Securities sold under agreements to repurchase | 51.8 | 0 |
FHLB of Chicago | ||
Schedule of Investments [Line Items] | ||
Fair Value | 1,014.4 | 987.2 |
Governmental Agencies as Required by Law in Various States | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ 27 | $ 29.2 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses (Details) $ in Millions | Mar. 31, 2024 USD ($) | Mar. 31, 2024 security | Mar. 31, 2024 | Mar. 31, 2024 position | Dec. 31, 2023 USD ($) | Dec. 31, 2023 security | Dec. 31, 2023 | Dec. 31, 2023 position |
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Number of positions with a gross unrealized loss, 12 Months or Less (security) | security | 298 | 195 | ||||||
Number of positions with a gross unrealized loss, more than 12 months (security) | 2,213 | 2,213 | 2,305 | 2,305 | ||||
Number of positions with a gross unrealized loss, Total (security) | security | 2,511 | 2,500 | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, 12 Months or Less (percent) | 10.90% | 9.20% | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, more than 12 months (percent) | 59.10% | 65.20% | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, Total (percent) | 70% | 74.40% | ||||||
Fixed maturity securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | $ 581.8 | $ 479.2 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 3,155.2 | 3,415.5 | ||||||
Fixed maturity securities, Fair Value, Total | 3,737 | 3,894.7 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 28.4 | 28.3 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 471 | 452.2 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 499.4 | 480.5 | ||||||
Mortgage-backed securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 63.1 | 45.3 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 470.4 | 458.5 | ||||||
Fixed maturity securities, Fair Value, Total | 533.5 | 503.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 1 | 0.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 70.7 | 63.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 71.7 | 64.6 | ||||||
Other | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 100.8 | 39.5 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 276.6 | 288 | ||||||
Fixed maturity securities, Fair Value, Total | 377.4 | 327.5 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 1.6 | 0.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 65.2 | 62.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 66.8 | 62.8 | ||||||
Municipal bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 111.7 | 64.5 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 704.9 | 724.6 | ||||||
Fixed maturity securities, Fair Value, Total | 816.6 | 789.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 1.6 | 0.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 95.7 | 91 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 97.3 | 91.9 | ||||||
Foreign government bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 1.4 | 1.5 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 20.5 | 20.6 | ||||||
Fixed maturity securities, Fair Value, Total | 21.9 | 22.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0.1 | 0 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 1.1 | 1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 1.2 | 1 | ||||||
Corporate bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 252.8 | 195 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 1,147.4 | 1,171.3 | ||||||
Fixed maturity securities, Fair Value, Total | 1,400.2 | 1,366.3 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 23.5 | 25.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 206.2 | 194.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | 229.7 | 220.3 | ||||||
Other asset-backed securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 52 | 133.4 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 535.4 | 752.5 | ||||||
Fixed maturity securities, Fair Value, Total | 587.4 | 885.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0.6 | 0.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 32.1 | 39.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, Total | $ 32.7 | $ 39.9 |
Investments - Fixed Maturity Se
Investments - Fixed Maturity Securities in Continuous Loss Position (Details) | Mar. 31, 2024 security | Mar. 31, 2024 position | Dec. 31, 2023 security | Dec. 31, 2023 position |
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 2,213 | 2,213 | 2,305 | 2,305 |
Investment Grade | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 2,027 | 2,103 | ||
Non Investment Grade | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 124 | 139 | ||
AAA | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 191 | 226 | ||
AA | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 984 | 1,006 | ||
A | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 415 | 423 | ||
BBB | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 437 | 448 | ||
BB | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 82 | 93 | ||
B | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 34 | 39 | ||
CCC or lower | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 8 | 7 | ||
Not rated | ||||
Gain (Loss) on Securities | ||||
Number of position with a gross unrealized loss, more than 12 months | 62 | 63 |
Investments - Distribution of F
Investments - Distribution of Fixed Maturity Securities by Expected Maturity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Amortized Cost, net | ||
Due in 1 year or less | $ 287.5 | |
Due after 1 year through 5 years | 1,480.5 | |
Due after 5 years through 10 years | 1,496.8 | |
Due after 10 years through 20 years | 1,475.8 | |
Due after 20 years | 1,044.8 | |
Amortized Cost, net | 5,785.4 | $ 5,652.9 |
Fair Value | ||
Due in 1 year or less | 283.8 | |
Due after 1 year through 5 years | 1,438.2 | |
Due after 5 years through 10 years | 1,425 | |
Due after 10 years through 20 years | 1,321.7 | |
Due after 20 years | 874 | |
Total | $ 5,342.7 | $ 5,235.3 |
Percent of Total Fair Value | ||
Due in 1 year Or less (percent) | 5.30% | |
Due after 1 year through 5 years (percent) | 26.90% | |
Due after 5 years through 10 years (percent) | 26.70% | |
Due after 10 years through 20 years (percent) | 24.70% | |
Due after 20 years (percent) | 16.40% | |
Total (percent) | 100% | |
Average option-adjusted duration, in years | 5 years 10 months 24 days |
Investments - Sales of Fixed Ma
Investments - Sales of Fixed Maturity and Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fixed maturity securities | ||
Proceeds received | $ 88 | $ 62.7 |
Gross gains realized | 1.3 | 0.3 |
Gross losses realized | (1.4) | (2.7) |
Equity securities | ||
Proceeds received | 0 | 0 |
Gross gains realized | 0 | 0 |
Gross losses realized | $ 0 | $ 0 |
Investments - Reconciliation of
Investments - Reconciliation of Net Unrealized Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | $ 1,175.3 | |
Ending balance | 1,211.4 | $ 1,139.2 |
Net unrealized investment gains (losses) on securities | ||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | (328.3) | (449.6) |
Ending balance | (348) | (356.4) |
Net unrealized investment gains (losses) on securities | Fixed maturity securities | ||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | (328.3) | (449.6) |
Change in net unrealized investment gains (losses) on fixed maturity securities | (20.5) | 91.3 |
Reclassification of net investment losses on fixed maturity securities to net income | 0.8 | 1.9 |
Ending balance | $ (348) | $ (356.4) |
Investments - Carrying Amount o
Investments - Carrying Amount of Equity Method Limited Partnership Interests (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments | ||
Limited partnership interests | $ 1,119.3 | $ 1,138.8 |
Commercial mortgage loan funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 646.2 | 660.8 |
Real estate equity funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 103.3 | 109.2 |
Private equity funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 95.5 | 92.7 |
Infrastructure equity funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 78 | 77.2 |
Infrastructure debt funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | 62.4 | 59.1 |
Other funds | ||
Schedule of Equity Method Investments | ||
Limited partnership interests | $ 133.9 | $ 139.8 |
Investments - Offsetting of Ass
Investments - Offsetting of Assets and Liabilities (Details) - Free-standing derivatives - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Asset derivatives: | ||
Gross Amounts | $ 23.1 | $ 19 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheets | 23.1 | 19 |
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 | 23.6 | 18.5 |
Net Amount | $ (0.5) | |
Net Amount | $ 0.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | ||
Percentage of level 3 invested assets in total investment portfolio | 9.20% | |
Net investment gains (losses) included in net income related to financial liabilities | $ 1.3 | $ 0.2 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Instruments Measured and Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Assets | ||
Total fixed maturity securities | $ 5,342.7 | $ 5,235.3 |
Equity securities | 84.7 | 86.2 |
Mortgage-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 677.7 | 653.2 |
Other, including U.S. Treasury securities | ||
Financial Assets | ||
Total fixed maturity securities | 391.2 | 388.8 |
Municipal bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,207.5 | 1,270.1 |
Foreign government bonds | ||
Financial Assets | ||
Total fixed maturity securities | 21.9 | 22.1 |
Corporate bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,829.9 | 1,772.7 |
Other asset-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 1,214.5 | 1,128.4 |
Carrying Amount | Recurring | ||
Financial Assets | ||
Total fixed maturity securities | 5,342.7 | 5,235.3 |
Equity securities | 84.7 | 86.2 |
Short-term investments | 69.4 | 132.9 |
Other investments | 23.1 | 19 |
Totals | 5,519.9 | 5,473.4 |
Separate Account variable annuity assets | 3,516.9 | 3,294.1 |
Financial Liabilities | 85 | 86 |
Carrying Amount | Recurring | Mortgage-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 677.7 | 653.2 |
Carrying Amount | Recurring | Other, including U.S. Treasury securities | ||
Financial Assets | ||
Total fixed maturity securities | 391.2 | 388.8 |
Carrying Amount | Recurring | Municipal bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,207.5 | 1,270.1 |
Carrying Amount | Recurring | Foreign government bonds | ||
Financial Assets | ||
Total fixed maturity securities | 21.9 | 22.1 |
Carrying Amount | Recurring | Corporate bonds | ||
Financial Assets | ||
Total fixed maturity securities | 1,829.9 | 1,772.7 |
Carrying Amount | Recurring | Other asset-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 1,214.5 | 1,128.4 |
Fair Value | Recurring | ||
Financial Assets | ||
Total fixed maturity securities | 5,342.7 | 5,235.3 |
Equity securities | 84.7 | 86.2 |
Short-term investments | 69.4 | 132.9 |
Other investments | 23.1 | 19 |
Totals | 5,519.9 | 5,473.4 |
Separate Account variable annuity assets | 3,516.9 | 3,294.1 |
Financial Liabilities | 85 | 86 |
Fair Value | Recurring | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 53.6 | 55.7 |
Equity securities | 18.1 | 17.9 |
Short-term investments | 69.4 | 132.9 |
Other investments | 0 | 0 |
Totals | 141.1 | 206.5 |
Separate Account variable annuity assets | 3,516.9 | 3,294.1 |
Financial Liabilities | 0 | 0 |
Fair Value | Recurring | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 4,781.7 | 4,665.6 |
Equity securities | 64.1 | 63.8 |
Short-term investments | 0 | 0 |
Other investments | 23.1 | 19 |
Totals | 4,868.9 | 4,748.4 |
Separate Account variable annuity assets | 0 | 0 |
Financial Liabilities | 4.2 | 3.6 |
Fair Value | Recurring | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 507.4 | 514 |
Equity securities | 2.5 | 4.5 |
Short-term investments | 0 | 0 |
Other investments | 0 | 0 |
Totals | 509.9 | 518.5 |
Separate Account variable annuity assets | 0 | 0 |
Financial Liabilities | 80.8 | 82.4 |
Fair Value | Recurring | Mortgage-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 677.7 | 653.2 |
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 | 677.7 | 653.2 |
Fair Value | Recurring | Mortgage-backed securities | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 0 | 0 |
Fair Value | Recurring | Other, including U.S. Treasury securities | ||
Financial Assets | ||
Total fixed maturity securities | 391.2 | 388.8 |
Fair Value | Recurring | Other, including U.S. Treasury securities | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 45 | 45.6 |
Fair Value | Recurring | Other, including U.S. Treasury securities | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 346.2 | 343.2 |
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 | 1,207.5 | 1,270.1 |
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 | 1,134.3 | 1,196.1 |
Fair Value | Recurring | Municipal bonds | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 73.2 | 74 |
Fair Value | Recurring | Foreign government bonds | ||
Financial Assets | ||
Total fixed maturity securities | 21.9 | 22.1 |
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 | 21.9 | 22.1 |
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 | 1,829.9 | 1,772.7 |
Fair Value | Recurring | Corporate bonds | Level 1 | ||
Financial Assets | ||
Total fixed maturity securities | 8.6 | 10.1 |
Fair Value | Recurring | Corporate bonds | Level 2 | ||
Financial Assets | ||
Total fixed maturity securities | 1,475.8 | 1,420.1 |
Fair Value | Recurring | Corporate bonds | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | 345.5 | 342.5 |
Fair Value | Recurring | Other asset-backed securities | ||
Financial Assets | ||
Total fixed maturity securities | 1,214.5 | 1,128.4 |
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 | 1,125.8 | 1,030.9 |
Fair Value | Recurring | Other asset-backed securities | Level 3 | ||
Financial Assets | ||
Total fixed maturity securities | $ 88.7 | $ 97.5 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Rollforward of Instruments Measured on Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financial Assets | ||
Beginning balance | $ 518.5 | $ 425.3 |
Transfers into Level 3 | 0 | 6.3 |
Transfers out of Level 3 | (4.4) | 0 |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0.1 | 0 |
Net unrealized gains (losses) included in OCI | 1.1 | 1.7 |
Purchases | 14.1 | 19.2 |
Issuances | 0 | 0 |
Sales | 0 | (2.6) |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (19.5) | (3.9) |
Ending balance | 509.9 | 446 |
Financial Liabilities | ||
Beginning balance | 82.4 | 91 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses | ||
Net investment (gains) losses included in net income related to financial liabilities | (1.3) | (0.2) |
Net unrealized gains (losses) included in OCI | (0.1) | 0 |
Purchases | 0 | 0 |
Issuances | 1.4 | 2.1 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (4.2) | (3.4) |
Ending balance | $ 80.8 | $ 89.9 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment gains (losses) | Net investment gains (losses) |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Available-for-Sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Available-for-Sale Securities Adjustment, Net of Tax, Portion Attributable to Parent |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Available-for-Sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Available-for-Sale Securities Adjustment, Net of Tax, Portion Attributable to Parent |
Municipal bonds | ||
Financial Assets | ||
Beginning balance | $ 74 | $ 54.4 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | 0 |
Net unrealized gains (losses) included in OCI | (0.7) | 1.2 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (0.1) | (0.2) |
Ending balance | 73.2 | 55.4 |
Corporate bonds | ||
Financial Assets | ||
Beginning balance | 342.5 | 261.3 |
Transfers into Level 3 | 0 | 5.9 |
Transfers out of Level 3 | (4.4) | 0 |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | 0 |
Net unrealized gains (losses) included in OCI | (0.6) | 0.9 |
Purchases | 14.1 | 19 |
Issuances | 0 | 0 |
Sales | 0 | (2.6) |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (6.1) | (0.5) |
Ending balance | 345.5 | 284 |
Mortgage Backed and Other Asset- Backed Securities | ||
Financial Assets | ||
Beginning balance | 97.5 | 107.6 |
Transfers into Level 3 | 0 | 0.4 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | 0 |
Net unrealized gains (losses) included in OCI | 2.4 | (0.4) |
Purchases | 0 | 0.2 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (11.2) | (3.2) |
Ending balance | 88.7 | 104.6 |
Total Fixed Maturity Securities | ||
Financial Assets | ||
Beginning balance | 514 | 423.3 |
Transfers into Level 3 | 0 | 6.3 |
Transfers out of Level 3 | (4.4) | 0 |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | 0 |
Net unrealized gains (losses) included in OCI | 1.1 | 1.7 |
Purchases | 14.1 | 19.2 |
Issuances | 0 | 0 |
Sales | 0 | (2.6) |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (17.4) | (3.9) |
Ending balance | 507.4 | 444 |
Equity securities | ||
Financial Assets | ||
Beginning balance | 4.5 | 2 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0.1 | 0 |
Net unrealized gains (losses) included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (2.1) | 0 |
Ending balance | $ 2.5 | $ 2 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | $ 5,342.7 | $ 5,235.3 | ||
Equity securities at fair value, (cost $101700000 and $86200000) | 84.7 | 86.2 | ||
Net MRBs | (6.3) | (3.9) | $ 1.3 | $ 0.2 |
Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 5,342.7 | 5,235.3 | ||
Equity securities at fair value, (cost $101700000 and $86200000) | 84.7 | 86.2 | ||
Financial Liabilities | 85 | 86 | ||
Mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 677.7 | 653.2 | ||
Mortgage-backed securities | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 677.7 | 653.2 | ||
Municipal bonds | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 1,207.5 | 1,270.1 | ||
Municipal bonds | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 1,207.5 | 1,270.1 | ||
Corporate bonds | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 1,829.9 | 1,772.7 | ||
Corporate bonds | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 1,829.9 | 1,772.7 | ||
Other asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 1,214.5 | 1,128.4 | ||
Other asset-backed securities | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 1,214.5 | 1,128.4 | ||
Level 3 | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 507.4 | 514 | ||
Equity securities at fair value, (cost $101700000 and $86200000) | 2.5 | 4.5 | ||
Totals | 509.9 | 518.5 | ||
Financial Liabilities | 80.8 | 82.4 | ||
Derivatives embedded in fixed indexed annuity products | 87.1 | |||
Net MRBs | (6.3) | |||
Level 3 | Fair Value | Recurring | Internal | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 185.5 | 180.4 | ||
Equity securities at fair value, (cost $101700000 and $86200000) | 0 | 0 | ||
Totals | 185.5 | 180.4 | ||
Financial Liabilities | 80.8 | 82.4 | ||
Level 3 | Fair Value | Recurring | External | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 321.9 | 333.6 | ||
Equity securities at fair value, (cost $101700000 and $86200000) | 2.5 | 4.5 | ||
Totals | 324.4 | 338.1 | ||
Financial Liabilities | 0 | 0 | ||
Level 3 | Mortgage-backed securities | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 0 | 0 | ||
Level 3 | Mortgage-backed securities | Fair Value | Recurring | Internal | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 0 | 0 | ||
Level 3 | Mortgage-backed securities | Fair Value | Recurring | External | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 0 | 0 | ||
Level 3 | Municipal bonds | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 73.2 | 74 | ||
Level 3 | Municipal bonds | Fair Value | Recurring | Internal | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 0 | 0 | ||
Level 3 | Municipal bonds | Fair Value | Recurring | External | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 73.2 | 74 | ||
Level 3 | Corporate bonds | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 345.5 | 342.5 | ||
Level 3 | Corporate bonds | Fair Value | Recurring | Internal | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 185.5 | 180.4 | ||
Level 3 | Corporate bonds | Fair Value | Recurring | External | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 160 | 162.1 | ||
Level 3 | Other asset-backed securities | Fair Value | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 88.7 | 97.5 | ||
Level 3 | Other asset-backed securities | Fair Value | Recurring | Internal | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | 0 | 0 | ||
Level 3 | Other asset-backed securities | Fair Value | Recurring | External | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Fair Value | $ 88.7 | $ 97.5 | ||
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 | Corporate bonds | discounted cash flow | yield | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Debt securities, measurement input | 0.045 | |||
Minimum | Level 3 | Corporate bonds | discounted cash flow | option adjusted spread | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Debt securities, measurement input | 0.0116 | |||
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 | Corporate bonds | discounted cash flow | yield | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Debt securities, measurement input | 0.162 | |||
Maximum | Level 3 | Corporate bonds | discounted cash flow | option adjusted spread | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Debt securities, measurement input | 0.0852 | |||
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 | 0.059 | |||
Net MRBs, measurement input | 0.059 | |||
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 | 0.694 | |||
Net MRBs, measurement input | 0.694 | |||
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Level 1 | ||
Investments | ||
Other investments | $ 0 | $ 0 |
Deposit asset on reinsurance | 0 | 0 |
Financial Liabilities | ||
Policyholders' account balances | 0 | 0 |
Reverse repurchase agreement | 0 | |
Other policyholder funds | 0 | 0 |
Long-term debt | 0 | 0 |
Level 2 | ||
Investments | ||
Other investments | 34.9 | 33.8 |
Deposit asset on reinsurance | 0 | 0 |
Financial Liabilities | ||
Policyholders' account balances | 0 | 0 |
Reverse repurchase agreement | 51.8 | |
Other policyholder funds | 933.7 | 908.7 |
Long-term debt | 569.8 | 571.4 |
Level 3 | ||
Investments | ||
Other investments | 187.1 | 187.9 |
Deposit asset on reinsurance | 2,192.2 | 2,259.6 |
Financial Liabilities | ||
Policyholders' account balances | 4,657.8 | 4,861.8 |
Reverse repurchase agreement | 0 | |
Other policyholder funds | 7.4 | 7.3 |
Long-term debt | 0 | 0 |
Carrying Amount | ||
Investments | ||
Other investments | 218.7 | 218.4 |
Deposit asset on reinsurance | 2,472.4 | 2,496.6 |
Financial Liabilities | ||
Policyholders' account balances | 5,052.6 | 4,996.3 |
Reverse repurchase agreement | 50 | |
Other policyholder funds | 941.1 | 916 |
Long-term debt | 546.2 | 546 |
Fair Value | ||
Investments | ||
Other investments | 222 | 221.7 |
Deposit asset on reinsurance | 2,192.2 | 2,259.6 |
Financial Liabilities | ||
Policyholders' account balances | 4,657.8 | 4,861.8 |
Reverse repurchase agreement | 51.8 | |
Other policyholder funds | 941.1 | 916 |
Long-term debt | $ 569.8 | $ 571.4 |
Short-Duration Insurance Cont_3
Short-Duration Insurance Contracts - Summary of Reinsurance Reserve Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross reserves, beginning of year | $ 581.7 | |
Claims and claim expense payments for claims occurring during: | ||
Gross reserves, end of year | 584.4 | |
Group Benefits | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross reserves, beginning of year | 116.6 | $ 121.6 |
Less: reinsurance recoverables | 27.7 | 27.9 |
Net reserves, beginning of year | 88.9 | 93.7 |
Incurred claims and claim expenses: | ||
Claims occurring in the current year | 20.2 | 20.2 |
Decrease in estimated reserves for claims occurring in prior years | (6.1) | (4.9) |
Total claims and claim expenses incurred | 14.1 | 15.3 |
Claims and claim expense payments for claims occurring during: | ||
Current year | 3.9 | 4.2 |
Prior years | 12.4 | 12.4 |
Total claims and claim expense payments | 16.3 | 16.6 |
Net reserves, end of year | 86.7 | 92.3 |
Plus: reinsurance recoverables | 27.6 | 28 |
Gross reserves, end of year | 114.3 | 120.3 |
Property & Casualty | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross reserves, beginning of year | 416.8 | 388.7 |
Less: reinsurance recoverables | 104 | 100.8 |
Net reserves, beginning of year | 312.8 | 287.9 |
Incurred claims and claim expenses: | ||
Claims occurring in the current year | 124.7 | 128.8 |
Decrease in estimated reserves for claims occurring in prior years | 0 | 0 |
Total claims and claim expenses incurred | 124.7 | 128.8 |
Claims and claim expense payments for claims occurring during: | ||
Current year | 44.6 | 40.6 |
Prior years | 78.3 | 79.6 |
Total claims and claim expense payments | 122.9 | 120.2 |
Net reserves, end of year | 314.6 | 296.5 |
Plus: reinsurance recoverables | 103.6 | 101.3 |
Gross reserves, end of year | $ 418.2 | $ 397.8 |
Short- Duration Insurance Contr
Short- Duration Insurance Contracts - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | $ 0 |
Group Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Favorable (unfavorable) development of total reserves for claims occurring in prior years | $ 6,100,000 | $ 4,900,000 |
Short-Duration Insurance Cont_4
Short-Duration Insurance Contracts - Reconciliation of Net Incurred and Paid Claims (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||
Unpaid claims and claim expenses | $ 584.4 | $ 581.7 | ||
Total short-duration insurance contracts | ||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||
Unpaid claims and claim expenses | 532.5 | 533.4 | ||
Property & Casualty | ||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||
Unpaid claims and claim expenses | 418.2 | 416.8 | ||
Group Benefits | ||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||
Unpaid claims and claim expenses | 114.3 | 116.6 | $ 120.3 | $ 121.6 |
Other than short-duration | ||||
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||
Unpaid claims and claim expenses | $ 51.9 | $ 48.3 |
Long-Duration Insurance Contr_3
Long-Duration Insurance Contracts - Balances of and Changes in the LFPB (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Liability for Future Policy Benefit, before Reinsurance | $ 1,702.1 | $ 1,761.8 | ||
Whole Life Insurance | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Beginning balance | 223.2 | |||
Beginning period (including reserves) | $ 215.1 | |||
Beginning balance at original discount rate | 247.1 | |||
Beginning balance at original discount rate (including reserves) | $ 245.9 | |||
Change in cash flow assumptions | 0 | 0 | ||
Actual variances from expected experience | 0.3 | 3.8 | ||
Adjusted balance | 247.4 | 249.7 | ||
Issuances | 2.5 | 10.8 | ||
Interest accruals | 1.9 | 7.2 | ||
Net premiums collected | (7.8) | (20.6) | ||
Ending balance at original discount rate | 244 | |||
Effect of changes in discount rate assumptions | (28.5) | (23.9) | ||
Ending balance | 215.5 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Beginning balance | 522 | |||
Beginning balance (including reserves) | 493.6 | |||
Beginning balance at original discount rate | 592 | 592.1 | ||
Beginning balance at original discount rate (including reserves) | 581.9 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change | 0 | (0.6) | ||
Actual variances from expected experience | 0.5 | 4 | ||
Adjusted balance | 592.6 | 585.3 | ||
Issuances | 2.5 | 10.7 | ||
Interest accruals | 4.8 | 19 | ||
Benefit payments | (7.9) | (22.9) | ||
Ending balance at original discount rate | 592 | |||
Effect of changes in discount rate assumptions | (88.2) | (70.1) | ||
Ending balance | 503.8 | |||
Liability for Future Policy Benefit, before Reinsurance | 288.3 | 298.8 | ||
Less: Reinsurance recoverable | (62.5) | (64.3) | ||
Net liability for future policy benefits, after reinsurance recoverable | 225.8 | 234.5 | ||
Impact of flooring on net liability for future policy benefits | 0 | 0 | ||
Net liability for future policy benefits at March 31, 2024 | 225.8 | 234.5 | ||
Term Life Insurance | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Beginning balance | 240 | |||
Beginning period (including reserves) | 234.7 | |||
Beginning balance at original discount rate | 256.6 | |||
Beginning balance at original discount rate (including reserves) | 265.4 | |||
Change in cash flow assumptions | 0 | (16.8) | ||
Actual variances from expected experience | 0.3 | (2.7) | ||
Adjusted balance | 256.9 | 245.9 | ||
Issuances | 6.1 | 25.2 | ||
Interest accruals | 2.6 | 10.3 | ||
Net premiums collected | (6.2) | (24.8) | ||
Ending balance at original discount rate | 259.4 | |||
Effect of changes in discount rate assumptions | (21.7) | (16.6) | ||
Ending balance | 237.7 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Beginning balance | 370.1 | |||
Beginning balance (including reserves) | 347 | |||
Beginning balance at original discount rate | 411.1 | 405.4 | ||
Beginning balance at original discount rate (including reserves) | 401 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change | 0 | (16.7) | ||
Actual variances from expected experience | 1 | 1.3 | ||
Adjusted balance | 406.4 | 385.6 | ||
Issuances | 6.2 | 25.8 | ||
Interest accruals | 3.9 | 15.2 | ||
Benefit payments | (5.4) | (21.2) | ||
Ending balance at original discount rate | 411.1 | |||
Effect of changes in discount rate assumptions | (45) | (35.3) | ||
Ending balance | 366.1 | |||
Liability for Future Policy Benefit, before Reinsurance | 128.3 | 130.2 | ||
Less: Reinsurance recoverable | (19) | (19.1) | ||
Net liability for future policy benefits, after reinsurance recoverable | 109.3 | 111.1 | ||
Impact of flooring on net liability for future policy benefits | 0 | 0 | ||
Net liability for future policy benefits at March 31, 2024 | 109.3 | 111.1 | ||
Experience Life Insurance | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Beginning balance | 71.7 | |||
Beginning period (including reserves) | 68.3 | |||
Beginning balance at original discount rate | 67 | |||
Beginning balance at original discount rate (including reserves) | 65.5 | |||
Change in cash flow assumptions | 0 | 3.7 | ||
Actual variances from expected experience | (0.1) | 0.7 | ||
Adjusted balance | 66.9 | 69.9 | ||
Issuances | 0 | 0 | ||
Interest accruals | 0.9 | 3.7 | ||
Net premiums collected | (1.7) | (6.6) | ||
Ending balance at original discount rate | 66.1 | |||
Effect of changes in discount rate assumptions | 2.9 | 4.7 | ||
Ending balance | 69 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Beginning balance | 883 | |||
Beginning balance (including reserves) | 867.5 | |||
Beginning balance at original discount rate | 791.7 | 797.5 | ||
Beginning balance at original discount rate (including reserves) | 805.2 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change | 0 | 5 | ||
Actual variances from expected experience | 0 | 1.1 | ||
Adjusted balance | 797.5 | 811.3 | ||
Issuances | 0 | 0 | ||
Interest accruals | 11.8 | 47.4 | ||
Benefit payments | (17.6) | (61.2) | ||
Ending balance at original discount rate | 791.7 | |||
Effect of changes in discount rate assumptions | 57.9 | 85.5 | ||
Ending balance | 849.6 | |||
Liability for Future Policy Benefit, before Reinsurance | 780.6 | 811.3 | ||
Less: Reinsurance recoverable | (1.1) | (1) | ||
Net liability for future policy benefits, after reinsurance recoverable | 779.5 | 810.3 | ||
Impact of flooring on net liability for future policy benefits | 0 | 0 | ||
Net liability for future policy benefits at March 31, 2024 | 779.5 | 810.3 | ||
Limited Pay Whole Life Insurance | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Beginning balance | 32.2 | |||
Beginning period (including reserves) | 29.7 | |||
Beginning balance at original discount rate | 33.9 | |||
Beginning balance at original discount rate (including reserves) | 32.4 | |||
Change in cash flow assumptions | 0 | (0.2) | ||
Actual variances from expected experience | 0.2 | 1 | ||
Adjusted balance | 34.1 | 33.2 | ||
Issuances | 1 | 4.3 | ||
Interest accruals | 0.3 | 1.2 | ||
Net premiums collected | (1.2) | (4.8) | ||
Ending balance at original discount rate | 34.2 | |||
Effect of changes in discount rate assumptions | (2.3) | (1.7) | ||
Ending balance | 31.9 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Beginning balance | 89.6 | |||
Beginning balance (including reserves) | 79.4 | |||
Beginning balance at original discount rate | 107.3 | 105.6 | ||
Beginning balance at original discount rate (including reserves) | 98.6 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change | 0 | (0.2) | ||
Actual variances from expected experience | 0.1 | 1 | ||
Adjusted balance | 105.7 | 99.4 | ||
Issuances | 1 | 4.3 | ||
Interest accruals | 1 | 3.9 | ||
Benefit payments | (0.4) | (2) | ||
Ending balance at original discount rate | 107.3 | |||
Effect of changes in discount rate assumptions | (20.1) | (16) | ||
Ending balance | 87.2 | |||
Liability for Future Policy Benefit, before Reinsurance | 55.3 | 57.4 | ||
Less: Reinsurance recoverable | (1.1) | (1.2) | ||
Net liability for future policy benefits, after reinsurance recoverable | 54.2 | 56.2 | ||
Impact of flooring on net liability for future policy benefits | 0 | 0 | ||
Net liability for future policy benefits at March 31, 2024 | 54.2 | 56.2 | ||
Supplemental health | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Beginning balance | 182 | |||
Beginning period (including reserves) | 167.4 | |||
Beginning balance at original discount rate | 213.4 | |||
Beginning balance at original discount rate (including reserves) | 205.1 | |||
Change in cash flow assumptions | 0 | 6.5 | ||
Actual variances from expected experience | 0.2 | (1.6) | ||
Adjusted balance | 213.6 | 210 | ||
Issuances | 5.6 | 19.4 | ||
Interest accruals | 1.6 | 6 | ||
Net premiums collected | (6.2) | (22) | ||
Ending balance at original discount rate | 214.6 | |||
Effect of changes in discount rate assumptions | (35.1) | (31.4) | ||
Ending balance | 179.5 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Beginning balance | 427.6 | |||
Beginning balance (including reserves) | 431.7 | |||
Beginning balance at original discount rate | 510.5 | 517.9 | ||
Beginning balance at original discount rate (including reserves) | 537.1 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change | 0 | 8.9 | ||
Actual variances from expected experience | 0.1 | (2.4) | ||
Adjusted balance | 518 | 543.6 | ||
Issuances | 5.6 | 19.4 | ||
Interest accruals | 3.6 | 14.4 | ||
Benefit payments | (16.7) | (59.5) | ||
Ending balance at original discount rate | 510.5 | |||
Effect of changes in discount rate assumptions | (98.9) | (90.3) | ||
Ending balance | 411.6 | |||
Liability for Future Policy Benefit, before Reinsurance | 231.8 | 245.6 | ||
Less: Reinsurance recoverable | (3.8) | (4) | ||
Net liability for future policy benefits, after reinsurance recoverable | 228 | 241.6 | ||
Impact of flooring on net liability for future policy benefits | 0 | 0 | ||
Net liability for future policy benefits at March 31, 2024 | 228 | 241.6 | ||
Cancer | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at March 31, 2024 | 113.1 | 92.7 | ||
Accident | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at March 31, 2024 | 20.7 | 21.4 | ||
Disability | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at March 31, 2024 | 26.5 | 23.5 | ||
Other | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at March 31, 2024 | 122.6 | 104 | ||
Life Contingent SPIA Retirement Insurance | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Beginning balance | 0 | |||
Beginning period (including reserves) | 0 | |||
Beginning balance at original discount rate | 0 | |||
Beginning balance at original discount rate (including reserves) | 0 | |||
Change in cash flow assumptions | 0 | 0 | ||
Actual variances from expected experience | 0 | 0 | ||
Adjusted balance | 0 | 0 | ||
Issuances | 0.6 | 5.6 | ||
Interest accruals | 0 | 0 | ||
Net premiums collected | (0.6) | (5.6) | ||
Ending balance at original discount rate | 0 | |||
Effect of changes in discount rate assumptions | 0 | 0 | ||
Ending balance | 0 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Beginning balance | 104.2 | |||
Beginning balance (including reserves) | 103.3 | |||
Beginning balance at original discount rate | 110.3 | 111.4 | ||
Beginning balance at original discount rate (including reserves) | 113.4 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change | 0 | 0 | ||
Actual variances from expected experience | 0.3 | (0.8) | ||
Adjusted balance | 111.7 | $ 112.6 | ||
Issuances | 0.6 | 6.3 | ||
Interest accruals | 1.1 | 4.4 | ||
Benefit payments | (3.1) | $ (11.9) | ||
Ending balance at original discount rate | 110.3 | |||
Effect of changes in discount rate assumptions | (9) | (7.2) | ||
Ending balance | 101.3 | |||
Liability for Future Policy Benefit, before Reinsurance | 101.3 | 104.2 | ||
Less: Reinsurance recoverable | (3.5) | (3.6) | ||
Net liability for future policy benefits, after reinsurance recoverable | 97.8 | 100.6 | ||
Impact of flooring on net liability for future policy benefits | 0 | 0 | ||
Net liability for future policy benefits at March 31, 2024 | $ 97.8 | $ 100.6 |
Long-Duration Insurance Contr_4
Long-Duration Insurance Contracts - Reconciliation of LFPB to Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | $ 1,702.1 | $ 1,761.8 |
Whole life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 288.3 | 298.8 |
Term life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 128.3 | 130.2 |
Experience Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 780.6 | 811.3 |
Limited Pay Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 55.3 | 57.4 |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 231.8 | 245.6 |
Life Contingent SPIA Retirement Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 101.3 | 104.2 |
Limited-pay whole life DPL | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 4.3 | 4.1 |
SPIA (life contingent) DPL | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 1.3 | 1.3 |
Reconciling items | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | $ 110.9 | $ 108.9 |
Long-Duration Insurance Contr_5
Long-Duration Insurance Contracts - Amounts Recognized in the Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | $ 59.2 | $ 59.1 |
Interest expense | 18.9 | 19 |
Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 6.9 | 6.6 |
Interest expense | 3 | 2.9 |
Term Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 11.2 | 10.8 |
Interest expense | 1.3 | 1.2 |
Experience Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 7.7 | 8.2 |
Interest expense | 10.8 | 11 |
Limited Pay Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 1.8 | 1.6 |
Interest expense | 0.7 | 0.6 |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 30.4 | 29.7 |
Interest expense | 2 | 2.2 |
Life Contingent SPIA Retirement Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 1.2 | 2.2 |
Interest expense | $ 1.1 | $ 1.1 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | $ 473.5 | $ 478.8 |
Expected future benefits and expenses, undiscounted | 1,151.5 | 1,152.8 |
Expected future gross premiums, discounted | 323 | 325 |
Expected future benefits and expenses, discounted | 592 | 592.1 |
Term Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 695.7 | 689 |
Expected future benefits and expenses, undiscounted | 694.7 | 682.7 |
Expected future gross premiums, discounted | 452.3 | 449.4 |
Expected future benefits and expenses, discounted | 411.1 | 405.4 |
Experience Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 519.4 | 530 |
Expected future benefits and expenses, undiscounted | 1,684.3 | 1,703.1 |
Expected future gross premiums, discounted | 290.6 | 296.1 |
Expected future benefits and expenses, discounted | 791.7 | 797.5 |
Limited Pay Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 65.6 | 64.7 |
Expected future benefits and expenses, undiscounted | 249.2 | 244.9 |
Expected future gross premiums, discounted | 49.6 | 49.1 |
Expected future benefits and expenses, discounted | 107.3 | 105.6 |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 1,619.2 | 1,624.1 |
Expected future benefits and expenses, undiscounted | 712.7 | 719.4 |
Expected future gross premiums, discounted | 1,187.4 | 1,192.5 |
Expected future benefits and expenses, discounted | 510.5 | 517.9 |
Life Contingent SPIA Retirement Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 0 | 0 |
Expected future benefits and expenses, undiscounted | 155 | 156.1 |
Expected future gross premiums, discounted | 0 | 0 |
Expected future benefits and expenses, discounted | $ 110.3 | $ 111.4 |
Long-Duration Insurance Contr_7
Long-Duration Insurance Contracts - Actual and Expected Experience of Mortality Rate and Lapse Rate (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.70% | 0.70% |
Mortality, expected experience | 0.70% | 0.70% |
Lapse rate, actual experience | 3.40% | 3.60% |
Lapse rate, expected experience | 4.30% | 4.60% |
Term Life Insurance | 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% | 5.60% |
Lapse rate, expected experience | 5.10% | 2.80% |
Term Life Insurance | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.20% | 0.30% |
Mortality, expected experience | 0.40% | 0.60% |
Lapse rate, actual experience | 22% | 8.30% |
Lapse rate, expected experience | 6.90% | 5.60% |
Experience Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 2.10% | 1.90% |
Mortality, expected experience | 1.70% | 1.60% |
Lapse rate, actual experience | 3.40% | 3.40% |
Lapse rate, expected experience | 3% | 3% |
Limited Pay Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0% | 0% |
Mortality, expected experience | 0.30% | 0.20% |
Lapse rate, actual experience | 3.60% | 3.60% |
Lapse rate, expected experience | 4.60% | 5.10% |
Long-Duration Insurance Contr_8
Long-Duration Insurance Contracts - Weighted-Average Durations of LFPB (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 17 years 10 months 24 days | 18 years |
Term Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 16 years 7 months 6 days | 17 years |
Experience Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 10 years 3 months 18 days | 11 years |
Limited Pay Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 21 years 10 months 24 days | 23 years |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 10 years 9 months 18 days | 10 years 2 months 12 days |
Life Contingent SPIA Retirement Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 7 years 7 months 6 days | 8 years |
Long-Duration Insurance Contr_9
Long-Duration Insurance Contracts - Discount Rates for LFPB (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Whole Life Insurance | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 4.60% | 4.70% |
Whole Life Insurance | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.90% | 4.90% |
Current discount rate | 5.40% | 5% |
Term Life Insurance | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.20% | 4.10% |
Current discount rate | 5.20% | 4.90% |
Term Life Insurance | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.20% | 4.30% |
Current discount rate | 5.30% | 5% |
Experience Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 6.10% | 6.10% |
Current discount rate | 5.30% | 5% |
Limited Pay Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4% | 3.90% |
Current discount rate | 5.40% | 5% |
Supplemental health | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 5.30% | 5% |
Supplemental health | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 2.70% | 2.70% |
Current discount rate | 5.40% | 5.20% |
Life Contingent SPIA Retirement Insurance | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 5.20% | 4.90% |
Life Contingent SPIA Retirement Insurance | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.10% | 4.10% |
Current discount rate | 5.20% | 5% |
Long-Duration Insurance Cont_10
Long-Duration Insurance Contracts - Policyholder Account Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Policyholder Account Balance [Roll Forward] | |||
Beginning balance | $ 5,187 | ||
Interest credited | 52.9 | $ 48.7 | |
Ending balance | 5,137.6 | $ 5,187 | |
Indexed Universal Life Insurance | |||
Policyholder Account Balance [Roll Forward] | |||
Beginning balance | 57.8 | 47.6 | 47.6 |
Premiums received | 3.9 | 3.6 | |
Surrenders and withdrawals | (0.5) | (0.4) | |
Benefit payments | 0 | 0 | |
Net transfers from (to) separate account | (0.1) | 0 | |
Interest credited | 0.8 | 0 | |
Other | (0.9) | (0.9) | |
Ending balance | $ 61 | $ 49.9 | 57.8 |
Weighted average credit rate | 5.60% | 0.10% | |
Net amount at risk | $ 0 | $ 0 | |
Cash surrender value | 43.3 | 32.9 | |
Experience Life Insurance | |||
Policyholder Account Balance [Roll Forward] | |||
Beginning balance | 61.2 | 64.3 | 64.3 |
Premiums received | (0.1) | (0.2) | |
Surrenders and withdrawals | (1.3) | (0.9) | |
Benefit payments | (0.5) | (0.5) | |
Net transfers from (to) separate account | 0 | 0 | |
Interest credited | 0.7 | 0.8 | |
Other | 0.1 | 0 | |
Ending balance | $ 60.1 | $ 63.5 | 61.2 |
Weighted average credit rate | 4.90% | 5% | |
Net amount at risk | $ 0 | $ 0 | |
Cash surrender value | 59.5 | 62.8 | |
Fixed Annuity | |||
Policyholder Account Balance [Roll Forward] | |||
Beginning balance | 4,556 | 4,591.1 | 4,591.1 |
Premiums received | 49 | 54.9 | |
Surrenders and withdrawals | (112.2) | (98.1) | |
Benefit payments | (20.6) | (19.1) | |
Net transfers from (to) separate account | 1.9 | 6.6 | |
Interest credited | 41.7 | 40.1 | |
Other | 4.1 | 1.9 | |
Ending balance | $ 4,519.9 | $ 4,577.4 | 4,556 |
Weighted average credit rate | 3.70% | 3.60% | |
Net amount at risk | $ 32 | $ 39.5 | |
Cash surrender value | 4,468.2 | 4,540.9 | |
Indexed Annuity | |||
Policyholder Account Balance [Roll Forward] | |||
Beginning balance | 449 | 510.3 | 510.3 |
Premiums received | 3.6 | 5.1 | |
Surrenders and withdrawals | (13.3) | (13.9) | |
Benefit payments | (0.8) | (0.6) | |
Net transfers from (to) separate account | (0.8) | (0.9) | |
Interest credited | 2.7 | 0 | |
Other | (3) | (1.6) | |
Ending balance | $ 437.4 | $ 498.4 | 449 |
Weighted average credit rate | 2.50% | 0% | |
Net amount at risk | $ 0 | $ 0 | |
Cash surrender value | 428.4 | 486.7 | |
Non-Life Contingent Single-Premium Immediate Annuity Insurance | |||
Policyholder Account Balance [Roll Forward] | |||
Beginning balance | 32.6 | 34.4 | 34.4 |
Premiums received | 0.8 | 1.1 | |
Surrenders and withdrawals | (0.6) | (0.1) | |
Benefit payments | (1.4) | (1.7) | |
Net transfers from (to) separate account | 0 | 0 | |
Interest credited | 0.2 | 0.3 | |
Other | 0 | (0.2) | |
Ending balance | $ 31.6 | $ 33.8 | $ 32.6 |
Weighted average credit rate | 3.10% | 3% | |
Net amount at risk | $ 0 | $ 0 | |
Cash surrender value | $ 31.4 | $ 33.7 |
Long-Duration Insurance Cont_11
Long-Duration Insurance Contracts - Reconciliation of Policyholder Account Balances to the Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | $ 5,137.6 | $ 5,187 | ||
Indexed Universal Life Insurance | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 61 | 57.8 | $ 49.9 | $ 47.6 |
Experience Life Insurance | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 60.1 | 61.2 | 63.5 | 64.3 |
Fixed Annuity | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 4,519.9 | 4,556 | 4,577.4 | 4,591.1 |
Indexed Annuity | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 437.4 | 449 | 498.4 | 510.3 |
Non-Life Contingent Single-Premium Immediate Annuity Insurance | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 31.6 | 32.6 | $ 33.8 | $ 34.4 |
Reconciling items | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | $ 27.6 | $ 30.4 |
Long-Duration Insurance Cont_12
Long-Duration Insurance Contracts - Account Balances by Guaranteed Minimum Interest Rates (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 5,137.6 | $ 5,187 |
Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 859.7 | 886.1 |
Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 418.3 | 382.7 |
Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 589.3 | 609 |
Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 2,644.1 | 2,670.5 |
5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 85.6 | 86.9 |
Policyholder account balance with a guaranteed minimum crediting rate | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | $ 4,597 | $ 4,635.2 |
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 | $ 22.4 | $ 36.7 |
At Guaranteed Minimum | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 132.2 | 162.9 |
At Guaranteed Minimum | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 546.4 | 571.3 |
At Guaranteed Minimum | Equal to 4% but less than 5% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 2,644.1 | 2,670.5 |
At Guaranteed Minimum | 5% or higher | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 85.6 | 86.9 |
At Guaranteed Minimum | Policyholder account balance with a guaranteed minimum crediting rate | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 3,430.7 | 3,528.3 |
1-50 Basis Points Above | Less than 2% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 114.3 | 159.8 |
1-50 Basis Points Above | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 101.2 | 77.9 |
1-50 Basis Points Above | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 42.2 | 36.9 |
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 | $ 257.7 | $ 274.6 |
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 | $ 506.5 | $ 489.4 |
51-150 Basis Points Above | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 77.1 | 65.8 |
51-150 Basis Points Above | Equal to 3% but less than 4% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 0.7 | 0.7 |
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 | $ 584.3 | $ 555.9 |
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 | $ 216.5 | $ 200.2 |
Greater Than 150 Basis Points Above | Equal to 2% but less than 3% | ||
Policyholder Account Balance [Line Items] | ||
Policyholders' account balances | 107.8 | 76.1 |
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 | $ 324.3 | $ 276.3 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of year | $ 3,294.1 | |
Balance, end of period | 3,516.9 | $ 3,294.1 |
Variable Account Annuities | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of year | 3,294.1 | 2,792.3 |
Deposits | 59.3 | 234.2 |
Withdrawals | (69.7) | (213.4) |
Net transfers | (1.1) | (15.5) |
Fees and charges | (12.3) | (37.6) |
Market appreciation (depreciation) | 246.6 | 541.5 |
Other | 0 | (7.4) |
Balance, end of period | $ 3,516.9 | $ 3,294.1 |
Long-Duration Insurance Cont_14
Long-Duration Insurance Contracts - Market Risk Benefits Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | $ (3.9) | $ 0.2 |
Balance, beginning of period, before effects of changes in the instrument-specific credit risk | (4.5) | 0 |
Changes in market risk benefits | (2.3) | 0.9 |
Balance, end of period | (6.8) | 0.9 |
Effect of changes in the instrument-specific credit risk | 0.5 | 0.4 |
Balance, end of period | (6.3) | 1.3 |
Net amount at risk | $ 16.6 | $ 38.3 |
Weighted-average attained age of contract holders | 62 years | 63 years |
Long-Duration Insurance Cont_15
Long-Duration Insurance Contracts - Market Risk Benefits by Asset and Liability Balance (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Market Risk Benefit [Line Items] | ||||
Net | $ (6.3) | $ (3.9) | $ 1.3 | $ 0.2 |
Deferred variable annuities | ||||
Market Risk Benefit [Line Items] | ||||
(Asset) | (8.3) | (6.7) | ||
Liability | 2 | 2.8 | ||
Net | $ (6.3) | $ (3.9) |
Long-Duration Insurance Cont_16
Long-Duration Insurance Contracts - Deferred Policy Acquisition Costs, Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $ 336.3 | |
Amortization expense | (27) | $ (23.7) |
Balance, end of period | 337.3 | |
Whole Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 22.3 | 20.9 |
Capitalizations | 0.7 | 0.6 |
Amortization expense | (0.3) | (0.3) |
Experience adjustment | (0.1) | 0 |
Balance, end of period | 22.6 | 21.2 |
Term Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 32.6 | 30 |
Capitalizations | 1.2 | 1.3 |
Amortization expense | (0.9) | (0.6) |
Experience adjustment | 0 | 0 |
Balance, end of period | 32.9 | 30.7 |
Experience Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 5.7 | 5.8 |
Capitalizations | 0.1 | 0 |
Amortization expense | (0.1) | 0 |
Experience adjustment | 0 | 0 |
Balance, end of period | 5.7 | 5.8 |
Limited Pay Whole Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 7.4 | 6.7 |
Capitalizations | 0.2 | 0.2 |
Amortization expense | (0.1) | (0.1) |
Experience adjustment | 0 | 0 |
Balance, end of period | 7.5 | 6.8 |
Indexed Universal Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 16.8 | 15.4 |
Capitalizations | 0.7 | 0.5 |
Amortization expense | (0.3) | (0.2) |
Experience adjustment | (0.1) | 0 |
Balance, end of period | 17.1 | 15.7 |
Supplemental health | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 8.2 | 6.2 |
Capitalizations | 0.8 | 0.6 |
Amortization expense | (0.2) | (0.1) |
Experience adjustment | (0.1) | 0 |
Balance, end of period | 8.7 | 6.7 |
Total Annuities | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 214 | 221.1 |
Capitalizations | 3.9 | 4 |
Amortization expense | (3.7) | (3.7) |
Experience adjustment | (1.3) | (1.7) |
Balance, end of period | $ 212.9 | $ 219.7 |
Long-Duration Insurance Cont_17
Long-Duration Insurance Contracts - Deferred Policy Acquisition Costs, Reconciliation to Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | $ 337.3 | $ 336.3 | ||
Whole Life Insurance | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | 22.6 | 22.3 | $ 21.2 | $ 20.9 |
Term Life Insurance | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | 32.9 | 32.6 | 30.7 | 30 |
Experience Life Insurance | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | 5.7 | 5.7 | 5.8 | 5.8 |
Limited Pay Whole Life Insurance | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | 7.5 | 7.4 | 6.8 | 6.7 |
Indexed Universal Life Insurance | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | 17.1 | 16.8 | 15.7 | 15.4 |
Supplemental health | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | 8.7 | 8.2 | 6.7 | 6.2 |
Total Annuities | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | 212.9 | 214 | $ 219.7 | $ 221.1 |
Reconciling items | ||||
Deferred Policy Acquisition Cost [Line Items] | ||||
Deferred policy acquisition costs | $ 29.9 | $ 29.3 |
Reinsurance - Summary of Reinsu
Reinsurance - Summary of Reinsurance Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Direct Amount | ||
Net premiums written and contract deposits, Direct Amount | $ 386.4 | $ 367.8 |
Net premiums and contract charges earned, Direct Amount | 288 | 264 |
Benefits, claims and settlement expenses, Direct Amount | 186.9 | 192.9 |
Ceded to Other Companies | ||
Net premiums written and contract deposits, Ceded to Other Companies | 18.1 | 16.6 |
Net premiums and contract charges earned, Ceded to Other Companies | 19.8 | 18.5 |
Benefits, claims and settlement expenses, Ceded to Other Companies | 14.6 | 12.7 |
Assumed from Other Companies | ||
Net premiums written and contract deposits, Assumed from Other Companies | 7.3 | 10.4 |
Net premiums and contract charges earned, Assumed from Other Companies | 7 | 10.4 |
Benefits, claims and settlement expenses, Assumed from Other Companies | 4 | 3 |
Net Amount | ||
Net premiums written and contract deposits, Net Amount | 375.6 | 361.6 |
Net premiums and contract charges earned, Net Amount | 275.2 | 255.9 |
Benefits, claims and settlement expenses, Net Amount | $ 176.3 | $ 183.2 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 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 | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information | |||
Net premiums and contract charges earned | $ 275.2 | $ 255.9 | |
Net investment income | 105.4 | 100.4 | |
Net income (loss) | 26.5 | 6.6 | |
Assets | 14,236.3 | $ 14,049.9 | |
Intersegment eliminations | |||
Segment Reporting Information | |||
Net investment income | (0.5) | (0.6) | |
Assets | (65.3) | (62.4) | |
Property & Casualty | Operating segments | |||
Segment Reporting Information | |||
Net premiums and contract charges earned | 173.2 | 152.4 | |
Net investment income | 12.3 | 4 | |
Net income (loss) | 10.6 | (11.6) | |
Assets | 1,229.2 | 1,218.1 | |
Life & Retirement | Operating segments | |||
Segment Reporting Information | |||
Net premiums and contract charges earned | 37.8 | 37.7 | |
Net investment income | 85.8 | 87.9 | |
Net income (loss) | 11.7 | 14 | |
Assets | 11,568.3 | 11,365 | |
Supplemental & Group Benefits | Operating segments | |||
Segment Reporting Information | |||
Net premiums and contract charges earned | 64.2 | 65.8 | |
Net investment income | 7.8 | 9.1 | |
Net income (loss) | 11 | 14 | |
Assets | 1,319.4 | 1,338.8 | |
Corporate & Other | |||
Segment Reporting Information | |||
Net investment income | 0 | 0 | |
Net income (loss) | (6.8) | $ (9.8) | |
Assets | $ 184.7 | $ 190.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | $ 1,175.3 | |
Other comprehensive income (loss) before reclassifications | 20.9 | $ 50.1 |
Amounts reclassified from AOCI | 0.8 | 1.9 |
Other comprehensive income | 21.7 | 52 |
Ending balance | 1,211.4 | 1,139.2 |
Pretax reclassification amounts from AOCI, tax | (0.2) | (0.5) |
Total | ||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | (314) | (399.4) |
Ending balance | (292.3) | (347.4) |
Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities | ||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | (328.3) | (449.6) |
Other comprehensive income (loss) before reclassifications | (20.5) | 91.3 |
Amounts reclassified from AOCI | 0.8 | 1.9 |
Other comprehensive income | (19.7) | 93.2 |
Ending balance | (348) | (356.4) |
Pretax reclassification amounts from accumulated other comprehensive income (loss) | (1) | (2.4) |
Net Reserve Remeasurements Attributable to Discount Rates | ||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | 21.9 | 59 |
Other comprehensive income (loss) before reclassifications | 41.4 | (41.2) |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income | 41.4 | (41.2) |
Ending balance | 63.3 | 17.8 |
Net Funded Status of Benefit Plans | ||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||
Beginning balance | (7.6) | (8.8) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income | 0 | 0 |
Ending balance | $ (7.6) | $ (8.8) |
Supplemental Consolidated Cas_3
Supplemental Consolidated Cash and Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash | $ 19.8 | $ 29 | ||
Restricted cash | 0.6 | 0.7 | ||
Total cash and restricted cash reported in the Consolidated Balance Sheets | 20.4 | $ 27.4 | $ 29.7 | $ 42.8 |
Interest | 11 | 1.2 | ||
Income taxes | $ 0 | $ 0.1 |
Contingencies and Commitments (
Contingencies and Commitments (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) lawsuit |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of lawsuits | lawsuit | 1 | |
Unfunded commitments to purchase investments | $ | $ 524.6 | $ 502.6 |