QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-3108137 | ||||||||||||||||
State of Incorporation | IRS Employer Identification No. | ||||||||||||||||
11825 N. Pennsylvania Street | |||||||||||||||||
Carmel, | Indiana | 46032 | (317) | 817-6100 | |||||||||||||
Address of principal executive offices | Telephone |
Name of each exchange on which registered | ||||||||||||||
New York Stock Exchange | ||||||||||||||
Rights to purchase Series E Junior Participating Preferred Stock | New York Stock Exchange | |||||||||||||
PART I - FINANCIAL INFORMATION | Page | |||||||
Item 1. | Financial Statements (unaudited) | |||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II - OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. |
September 30, 2023 | December 31, 2022 | ||||||||||
(As recast) | |||||||||||
Investments: | |||||||||||
Fixed maturities, available for sale, at fair value (net of allowance for credit losses: September 30, 2023 - $69.4 and December 31, 2022 - $56.0; amortized cost: September 30, 2023 - $23,899.5 and December 31, 2022 - $23,384.2) | $ | 20,305.2 | $ | 20,353.4 | |||||||
Equity securities at fair value | 95.5 | 135.3 | |||||||||
Mortgage loans (net of allowance for credit losses: September 30, 2023 - $10.9 and December 31, 2022 - $8.0) | 1,971.3 | 1,411.9 | |||||||||
Policy loans | 126.4 | 121.6 | |||||||||
Trading securities | 221.2 | 207.9 | |||||||||
Investments held by variable interest entities (net of allowance for credit losses: September 30, 2023 - $2.9 and December 31, 2022 - $5.5; amortized cost: September 30, 2023 - $880.6 and December 31, 2022 - $1,134.2) | 858.1 | 1,077.6 | |||||||||
Other invested assets | 1,119.9 | 1,034.7 | |||||||||
Total investments | 24,697.6 | 24,342.4 | |||||||||
Cash and cash equivalents - unrestricted | 460.8 | 575.7 | |||||||||
Cash and cash equivalents held by variable interest entities | 122.0 | 69.2 | |||||||||
Accrued investment income | 252.3 | 235.6 | |||||||||
Present value of future profits | 186.2 | 203.7 | |||||||||
Deferred acquisition costs | 1,897.5 | 1,770.9 | |||||||||
Reinsurance receivables (net of allowance for credit losses: September 30, 2023 - $3.0 and December 31, 2022 - $2.0) | 4,053.2 | 4,223.4 | |||||||||
Market risk benefit asset | 89.3 | 65.3 | |||||||||
Income tax assets, net | 1,039.8 | 1,063.4 | |||||||||
Assets held in separate accounts | 2.9 | 2.7 | |||||||||
Other assets | 705.8 | 580.8 | |||||||||
Total assets | $ | 33,507.4 | $ | 33,133.1 |
September 30, 2017 | December 31, 2016 | ||||||
Investments: | |||||||
Fixed maturities, available for sale, at fair value (amortized cost: September 30, 2017 - $20,092.5; December 31, 2016 - $19,803.1) | $ | 22,129.9 | $ | 21,096.2 | |||
Equity securities at fair value (cost: September 30, 2017 - $688.7; December 31, 2016 - $580.7) | 713.3 | 584.2 | |||||
Mortgage loans | 1,667.8 | 1,768.0 | |||||
Policy loans | 114.6 | 112.0 | |||||
Trading securities | 294.4 | 363.4 | |||||
Investments held by variable interest entities | 1,382.5 | 1,724.3 | |||||
Other invested assets | 752.1 | 589.5 | |||||
Total investments | 27,054.6 | 26,237.6 | |||||
Cash and cash equivalents - unrestricted | 765.9 | 478.9 | |||||
Cash and cash equivalents held by variable interest entities | 105.9 | 189.3 | |||||
Accrued investment income | 268.0 | 239.6 | |||||
Present value of future profits | 368.5 | 401.8 | |||||
Deferred acquisition costs | 1,023.8 | 1,044.7 | |||||
Reinsurance receivables | 2,195.5 | 2,260.4 | |||||
Income tax assets, net | 567.4 | 789.7 | |||||
Assets held in separate accounts | 4.8 | 4.7 | |||||
Other assets | 350.2 | 328.5 | |||||
Total assets | $ | 32,704.6 | $ | 31,975.2 |
September 30, 2023 | December 31, 2022 | ||||||||||
(As recast) | |||||||||||
Liabilities: | |||||||||||
Liabilities for insurance products: | |||||||||||
Policyholder account balances | $ | 15,481.8 | $ | 15,234.2 | |||||||
Future policy benefits | 10,829.9 | 11,240.2 | |||||||||
Market risk benefit liability | 3.1 | 11.3 | |||||||||
Liability for life insurance policy claims | 60.8 | 64.1 | |||||||||
Unearned and advanced premiums | 221.2 | 235.0 | |||||||||
Liabilities related to separate accounts | 2.9 | 2.7 | |||||||||
Other liabilities | 869.6 | 693.9 | |||||||||
Investment borrowings | 2,089.4 | 1,639.5 | |||||||||
Borrowings related to variable interest entities | 918.5 | 1,104.6 | |||||||||
Notes payable – direct corporate obligations | 1,140.1 | 1,138.8 | |||||||||
Total liabilities | 31,617.3 | 31,364.3 | |||||||||
Commitments and Contingencies | |||||||||||
Shareholders' equity: | |||||||||||
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: September 30, 2023 – 112,163,169; December 31, 2022 – 114,343,070) | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 1,965.3 | 2,033.8 | |||||||||
Accumulated other comprehensive loss | (1,956.7) | (1,957.3) | |||||||||
Retained earnings | 1,880.4 | 1,691.2 | |||||||||
Total shareholders' equity | 1,890.1 | 1,768.8 | |||||||||
Total liabilities and shareholders' equity | $ | 33,507.4 | $ | 33,133.1 |
September 30, 2017 | December 31, 2016 | ||||||
Liabilities: | |||||||
Liabilities for insurance products: | |||||||
Policyholder account balances | $ | 11,113.5 | $ | 10,912.7 | |||
Future policy benefits | 11,374.1 | 10,953.3 | |||||
Liability for policy and contract claims | 519.5 | 500.6 | |||||
Unearned and advanced premiums | 262.4 | 282.5 | |||||
Liabilities related to separate accounts | 4.8 | 4.7 | |||||
Other liabilities | 789.1 | 611.4 | |||||
Investment borrowings | 1,646.9 | 1,647.4 | |||||
Borrowings related to variable interest entities | 1,198.2 | 1,662.8 | |||||
Notes payable – direct corporate obligations | 914.4 | 912.9 | |||||
Total liabilities | 27,822.9 | 27,488.3 | |||||
Commitments and Contingencies | |||||||
Shareholders' equity: | |||||||
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: September 30, 2017 – 167,762,323; December 31, 2016 – 173,753,614) | 1.7 | 1.7 | |||||
Additional paid-in capital | 3,094.5 | 3,212.1 | |||||
Accumulated other comprehensive income | 933.6 | 622.4 | |||||
Retained earnings | 851.9 | 650.7 | |||||
Total shareholders' equity | 4,881.7 | 4,486.9 | |||||
Total liabilities and shareholders' equity | $ | 32,704.6 | $ | 31,975.2 |
Three months ended | Nine months ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(As recast) | (As recast) | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Insurance policy income | $ | 626.0 | $ | 623.2 | $ | 1,879.8 | $ | 1,873.8 | ||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||
General account assets | 324.8 | 289.0 | 925.1 | 884.2 | ||||||||||||||||||||||
Policyholder and other special-purpose portfolios | (33.0) | (20.9) | 109.4 | (184.0) | ||||||||||||||||||||||
Investment gains (losses): | ||||||||||||||||||||||||||
Realized investment gains (losses) | (21.6) | (8.2) | (58.0) | 3.6 | ||||||||||||||||||||||
Other investment losses | (7.7) | (9.5) | (21.2) | (102.8) | ||||||||||||||||||||||
Total investment losses | (29.3) | (17.7) | (79.2) | (99.2) | ||||||||||||||||||||||
Fee revenue and other income | 59.0 | 31.7 | 141.2 | 128.4 | ||||||||||||||||||||||
Total revenues | 947.5 | 905.3 | 2,976.3 | 2,603.2 | ||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||
Insurance policy benefits | 399.1 | 396.1 | 1,574.7 | 1,032.2 | ||||||||||||||||||||||
Liability for future policy benefits remeasurement loss | (.1) | (5.0) | 8.8 | 2.3 | ||||||||||||||||||||||
Change in fair value of market risk benefits | (33.8) | (34.9) | (36.6) | (117.9) | ||||||||||||||||||||||
Interest expense | 62.6 | 37.6 | 174.9 | 89.2 | ||||||||||||||||||||||
Amortization of deferred acquisition costs and present value of future profits | 57.0 | 53.5 | 168.5 | 158.5 | ||||||||||||||||||||||
Other operating costs and expenses | 247.1 | 230.1 | 775.3 | 670.9 | ||||||||||||||||||||||
Total benefits and expenses | 731.9 | 677.4 | 2,665.6 | 1,835.2 | ||||||||||||||||||||||
Income before income taxes | 215.6 | 227.9 | 310.7 | 768.0 | ||||||||||||||||||||||
Income tax expense on period income | 48.3 | 52.0 | 70.5 | 175.4 | ||||||||||||||||||||||
Net income | $ | 167.3 | $ | 175.9 | $ | 240.2 | $ | 592.6 | ||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 112,689,000 | 114,354,000 | 113,836,000 | 116,170,000 | ||||||||||||||||||||||
Net income | $ | 1.48 | $ | 1.54 | $ | 2.11 | $ | 5.10 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 114,462,000 | 115,928,000 | 115,613,000 | 118,072,000 | ||||||||||||||||||||||
Net income | $ | 1.46 | $ | 1.52 | $ | 2.08 | $ | 5.02 |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: | ||||||||||||||||
Insurance policy income | $ | 659.3 | $ | 649.0 | $ | 1,987.2 | $ | 1,947.0 | ||||||||
Net investment income: | ||||||||||||||||
General account assets | 325.9 | 301.7 | 960.3 | 888.5 | ||||||||||||
Policyholder and other special-purpose portfolios | 52.7 | 43.1 | 171.8 | 82.7 | ||||||||||||
Realized investment gains (losses): | ||||||||||||||||
Net realized investment gains (losses), excluding impairment losses | 34.5 | 12.8 | 74.8 | 55.4 | ||||||||||||
Other-than-temporary impairments: | ||||||||||||||||
Total other-than-temporary impairment losses | (4.7 | ) | (1.2 | ) | (17.3 | ) | (24.8 | ) | ||||||||
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income | — | — | (.9 | ) | — | |||||||||||
Net impairment losses recognized | (4.7 | ) | (1.2 | ) | (18.2 | ) | (24.8 | ) | ||||||||
Loss on dissolution of variable interest entities | (.6 | ) | — | (4.3 | ) | (7.3 | ) | |||||||||
Total realized gains | 29.2 | 11.6 | 52.3 | 23.3 | ||||||||||||
Fee revenue and other income | 12.2 | 10.5 | 35.5 | 38.7 | ||||||||||||
Total revenues | 1,079.3 | 1,015.9 | 3,207.1 | 2,980.2 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Insurance policy benefits | 638.1 | 609.8 | 1,941.6 | 1,861.2 | ||||||||||||
Loss on reinsurance transaction | — | 75.4 | — | 75.4 | ||||||||||||
Interest expense | 30.1 | 29.4 | 92.3 | 86.0 | ||||||||||||
Amortization | 58.2 | 64.7 | 181.3 | 181.6 | ||||||||||||
Loss on extinguishment of borrowings related to a variable interest entity | 5.5 | — | 5.5 | — | ||||||||||||
Other operating costs and expenses | 217.5 | 187.3 | 631.3 | 603.5 | ||||||||||||
Total benefits and expenses | 949.4 | 966.6 | 2,852.0 | 2,807.7 | ||||||||||||
Income before income taxes | 129.9 | 49.3 | 355.1 | 172.5 | ||||||||||||
Income tax expense (benefit): | ||||||||||||||||
Tax expense on period income | 44.1 | 16.9 | 123.6 | 61.7 | ||||||||||||
Valuation allowance for deferred tax assets and other tax items | (15.0 | ) | 13.8 | (15.0 | ) | (13.2 | ) | |||||||||
Net income | $ | 100.8 | $ | 18.6 | $ | 246.5 | $ | 124.0 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic: | ||||||||||||||||
Weighted average shares outstanding | 168,684,000 | 174,247,000 | 170,890,000 | 177,640,000 | ||||||||||||
Net income | $ | .60 | $ | .11 | $ | 1.44 | $ | .70 | ||||||||
Diluted: | ||||||||||||||||
Weighted average shares outstanding | 170,982,000 | 175,723,000 | 172,800,000 | 179,373,000 | ||||||||||||
Net income | $ | .59 | $ | .11 | $ | 1.43 | $ | .69 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(As recast) | (As recast) | ||||||||||||||||||||||
Net income | $ | 167.3 | $ | 175.9 | $ | 240.2 | $ | 592.6 | |||||||||||||||
Other comprehensive income (loss), before tax: | |||||||||||||||||||||||
Unrealized losses on investments | (922.4) | (1,407.2) | (569.1) | (6,128.2) | |||||||||||||||||||
Adjustment to discount rate for liability for future policy benefits | 627.0 | 862.6 | 520.9 | 3,241.4 | |||||||||||||||||||
Adjustment to instrument-specific credit risk for market risk benefits | (3.0) | .3 | (4.4) | 11.0 | |||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
For net realized investment losses included in net income | 12.0 | 1.0 | 52.1 | 36.0 | |||||||||||||||||||
Other comprehensive loss before tax | (286.4) | (543.3) | (.5) | (2,839.8) | |||||||||||||||||||
Income tax benefit related to items of accumulated other comprehensive loss | 63.2 | 121.3 | 1.1 | 628.3 | |||||||||||||||||||
Other comprehensive income (loss), net of tax | (223.2) | (422.0) | .6 | (2,211.5) | |||||||||||||||||||
Comprehensive income (loss) | $ | (55.9) | $ | (246.1) | $ | 240.8 | $ | (1,618.9) |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 100.8 | $ | 18.6 | $ | 246.5 | $ | 124.0 | |||||||
Other comprehensive income, before tax: | |||||||||||||||
Unrealized gains for the period | 120.9 | 228.3 | 794.5 | 1,329.2 | |||||||||||
Adjustment to present value of future profits and deferred acquisition costs | (1.8 | ) | (11.3 | ) | (25.3 | ) | (119.6 | ) | |||||||
Amount related to premium deficiencies assuming the net unrealized gains (losses) had been realized | (31.0 | ) | (82.8 | ) | (243.0 | ) | (493.4 | ) | |||||||
Reclassification adjustments: | |||||||||||||||
For net realized investment (gains) losses included in net income | (27.7 | ) | (14.6 | ) | (44.0 | ) | (24.2 | ) | |||||||
For amortization of the present value of future profits and deferred acquisition costs related to net realized investment gains (losses) included in net income | .7 | .2 | 1.0 | .9 | |||||||||||
Unrealized gains on investments | 61.1 | 119.8 | 483.2 | 692.9 | |||||||||||
Change related to deferred compensation plan | — | — | — | 8.6 | |||||||||||
Other comprehensive income before tax | 61.1 | 119.8 | 483.2 | 701.5 | |||||||||||
Income tax expense related to items of accumulated other comprehensive income | (22.0 | ) | (42.1 | ) | (172.0 | ) | (248.8 | ) | |||||||
Other comprehensive income, net of tax | 39.1 | 77.7 | 311.2 | 452.7 | |||||||||||
Comprehensive income | $ | 139.9 | $ | 96.3 | $ | 557.7 | $ | 576.7 |
Common stock | Additional paid-in | Accumulated other comprehensive | Retained | ||||||||||||||||||||||||||||||||
Shares | Amount | capital | income (loss) | earnings | Total | ||||||||||||||||||||||||||||||
Balance, June 30, 2022 (as recast) | 114,795 | $ | 1.1 | $ | 2,032.7 | $ | (1,415.8) | $ | 1,509.9 | $ | 2,127.9 | ||||||||||||||||||||||||
Net income | — | — | — | — | 175.9 | 175.9 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (422.0) | — | (422.0) | |||||||||||||||||||||||||||||
Common stock repurchased | (561) | — | (10.0) | — | — | (10.0) | |||||||||||||||||||||||||||||
Dividends on common stock | — | — | — | — | (16.3) | (16.3) | |||||||||||||||||||||||||||||
Employee benefit plans, net of shares used to pay tax withholdings | 133 | — | 7.9 | — | — | 7.9 | |||||||||||||||||||||||||||||
Balance, September 30, 2022 (as recast) | 114,367 | $ | 1.1 | $ | 2,030.6 | $ | (1,837.8) | $ | 1,669.5 | $ | 1,863.4 | ||||||||||||||||||||||||
Balance, June 30, 2023 | 113,674 | $ | 1.1 | $ | 1,997.9 | $ | (1,733.5) | $ | 1,730.3 | $ | 1,995.8 | ||||||||||||||||||||||||
Net income | — | — | — | — | 167.3 | 167.3 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (223.2) | — | (223.2) | |||||||||||||||||||||||||||||
Common stock repurchased | (1,646) | — | (40.0) | — | — | (40.0) | |||||||||||||||||||||||||||||
Dividends on common stock | — | — | — | — | (17.2) | (17.2) | |||||||||||||||||||||||||||||
Employee benefit plans, net of shares used to pay tax withholdings | 135 | — | 7.4 | — | — | 7.4 | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | 112,163 | $ | 1.1 | $ | 1,965.3 | $ | (1,956.7) | $ | 1,880.4 | $ | 1,890.1 |
Common stock and additional paid-in capital | Accumulated other comprehensive income | Retained earnings | Total | ||||||||||||
Balance, December 31, 2015 | $ | 3,388.6 | $ | 402.8 | $ | 347.1 | $ | 4,138.5 | |||||||
Net income | — | — | 124.0 | 124.0 | |||||||||||
Change in unrealized appreciation (depreciation) of investments and other (net of applicable income tax expense of $248.1) | — | 451.5 | — | 451.5 | |||||||||||
Change in noncredit component of impairment losses on fixed maturities, available for sale (net of applicable income tax expense of $.7) | — | 1.2 | — | 1.2 | |||||||||||
Cost of common stock repurchased | (203.0 | ) | — | — | (203.0 | ) | |||||||||
Dividends on common stock | — | — | (40.8 | ) | (40.8 | ) | |||||||||
Stock options, restricted stock and performance units | 22.4 | — | — | 22.4 | |||||||||||
Balance, September 30, 2016 | $ | 3,208.0 | $ | 855.5 | $ | 430.3 | $ | 4,493.8 | |||||||
Balance, December 31, 2016 | $ | 3,213.8 | $ | 622.4 | $ | 650.7 | $ | 4,486.9 | |||||||
Cumulative effect of accounting change | .9 | — | (.6 | ) | .3 | ||||||||||
Net income | — | — | 246.5 | 246.5 | |||||||||||
Change in unrealized appreciation (depreciation) of investments (net of applicable income tax expense of $170.9) | — | 309.1 | — | 309.1 | |||||||||||
Change in noncredit component of impairment losses on fixed maturities, available for sale (net of applicable income tax expense of $1.1) | — | 2.1 | — | 2.1 | |||||||||||
Cost of common stock repurchased | (140.1 | ) | — | — | (140.1 | ) | |||||||||
Dividends on common stock | — | — | (44.7 | ) | (44.7 | ) | |||||||||
Stock options, restricted stock and performance units | 21.6 | — | — | 21.6 | |||||||||||
Balance, September 30, 2017 | $ | 3,096.2 | $ | 933.6 | $ | 851.9 | $ | 4,881.7 |
Common stock | Additional paid-in | Accumulated other comprehensive | Retained | ||||||||||||||||||||||||||||||||
Shares | Amount | capital | income (loss) | earnings | Total | ||||||||||||||||||||||||||||||
Balance, December 31, 2021 (as recast) | 120,377 | $ | 1.2 | $ | 2,184.2 | $ | 373.7 | $ | 1,125.6 | $ | 3,684.7 | ||||||||||||||||||||||||
Net income | — | — | — | — | 592.6 | 592.6 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (2,211.5) | — | (2,211.5) | |||||||||||||||||||||||||||||
Common stock repurchased | (7,168) | (.1) | (169.9) | — | — | (170.0) | |||||||||||||||||||||||||||||
Dividends on common stock | — | — | — | — | (48.7) | (48.7) | |||||||||||||||||||||||||||||
Employee benefit plans, net of shares used to pay tax withholdings | 1,158 | — | 16.3 | — | — | 16.3 | |||||||||||||||||||||||||||||
Balance, September 30, 2022 (as recast) | 114,367 | $ | 1.1 | $ | 2,030.6 | $ | (1,837.8) | $ | 1,669.5 | $ | 1,863.4 | ||||||||||||||||||||||||
Balance, December 31, 2022 (as recast) | 114,343 | $ | 1.1 | $ | 2,033.8 | $ | (1,957.3) | $ | 1,691.2 | $ | 1,768.8 | ||||||||||||||||||||||||
Net income | — | — | — | — | 240.2 | 240.2 | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | .6 | — | .6 | |||||||||||||||||||||||||||||
Common stock repurchased | (3,625) | — | (85.1) | — | — | (85.1) | |||||||||||||||||||||||||||||
Dividends on common stock | — | — | — | — | (51.0) | (51.0) | |||||||||||||||||||||||||||||
Employee benefit plans, net of shares used to pay tax withholdings | 1,445 | — | 16.6 | — | — | 16.6 | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | 112,163 | $ | 1.1 | $ | 1,965.3 | $ | (1,956.7) | $ | 1,880.4 | $ | 1,890.1 |
Nine months ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Insurance policy income | $ | 1,713.4 | $ | 1,724.9 | |||||||
Net investment income | 979.5 | 832.2 | |||||||||
Fee revenue and other income | 167.0 | 110.4 | |||||||||
Insurance policy benefits | (1,215.2) | (1,243.4) | |||||||||
Interest expense | (155.3) | (65.8) | |||||||||
Deferrable policy acquisition costs | (277.6) | (248.5) | |||||||||
Other operating costs | (759.7) | (754.6) | |||||||||
Income taxes | (45.9) | (20.7) | |||||||||
Net cash from operating activities | 406.2 | 334.5 | |||||||||
Cash flows from investing activities: | |||||||||||
Sales of investments | 992.5 | 2,764.9 | |||||||||
Maturities and redemptions of investments | 1,026.8 | 1,265.1 | |||||||||
Purchases of investments | (2,897.1) | (5,521.1) | |||||||||
Net purchases of trading securities | (37.2) | (37.4) | |||||||||
Other | (30.3) | (39.4) | |||||||||
Net cash used by investing activities | (945.3) | (1,567.9) | |||||||||
Cash flows from financing activities: | |||||||||||
Issuance of common stock | 11.1 | 6.6 | |||||||||
Payments to repurchase common stock | (95.8) | (180.2) | |||||||||
Common stock dividends paid | (51.4) | (48.7) | |||||||||
Proceeds from financing arrangements | 78.2 | — | |||||||||
Amounts received for deposit products | 1,537.6 | 2,457.8 | |||||||||
Withdrawals from deposit products | (1,265.8) | (1,071.0) | |||||||||
Issuance of investment borrowings: | |||||||||||
Federal Home Loan Bank | 895.5 | 210.0 | |||||||||
Payments on investment borrowings: | |||||||||||
Federal Home Loan Bank | (445.6) | (285.9) | |||||||||
Related to variable interest entities | (186.8) | (33.4) | |||||||||
Net cash provided by financing activities | 477.0 | 1,055.2 | |||||||||
Net decrease in cash and cash equivalents | (62.1) | (178.2) | |||||||||
Cash and cash equivalents - unrestricted and held by variable interest entities, beginning of period | 644.9 | 731.7 | |||||||||
Cash and cash equivalents - unrestricted and held by variable interest entities, end of period | $ | 582.8 | $ | 553.5 |
Nine months ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Insurance policy income | $ | 1,859.4 | $ | 1,837.9 | |||
Net investment income | 898.9 | 877.7 | |||||
Fee revenue and other income | 35.5 | 38.7 | |||||
Cash and cash equivalents received upon recapture of reinsurance | — | 73.6 | |||||
Insurance policy benefits | (1,491.7 | ) | (1,439.6 | ) | |||
Interest expense | (81.0 | ) | (66.5 | ) | |||
Deferrable policy acquisition costs | (183.4 | ) | (179.4 | ) | |||
Other operating costs | (546.0 | ) | (552.1 | ) | |||
Income taxes | (58.0 | ) | (5.5 | ) | |||
Net cash from operating activities | 433.7 | 584.8 | |||||
Cash flows from investing activities: | |||||||
Sales of investments | 1,742.5 | 2,225.7 | |||||
Maturities and redemptions of investments | 2,543.0 | 1,529.5 | |||||
Purchases of investments | (4,076.8 | ) | (4,196.7 | ) | |||
Net sales (purchases) of trading securities | 94.8 | (31.0 | ) | ||||
Change in cash and cash equivalents held by variable interest entities | 83.4 | 216.7 | |||||
Other | (23.6 | ) | (17.8 | ) | |||
Net cash provided (used) by investing activities | 363.3 | (273.6 | ) | ||||
Cash flows from financing activities: | |||||||
Issuance of common stock | 6.0 | 6.9 | |||||
Payments to repurchase common stock | (142.3 | ) | (210.0 | ) | |||
Common stock dividends paid | (44.5 | ) | (40.9 | ) | |||
Amounts received for deposit products | 1,067.2 | 992.1 | |||||
Withdrawals from deposit products | (920.8 | ) | (891.5 | ) | |||
Issuance of investment borrowings: | |||||||
Federal Home Loan Bank | 332.0 | 432.7 | |||||
Related to variable interest entities | 387.3 | 477.1 | |||||
Payments on investment borrowings: | |||||||
Federal Home Loan Bank | (332.6 | ) | (333.3 | ) | |||
Related to variable interest entities | (862.3 | ) | (470.6 | ) | |||
Net cash used by financing activities | (510.0 | ) | (37.5 | ) | |||
Net increase in cash and cash equivalents | 287.0 | 273.7 | |||||
Cash and cash equivalents, beginning of period | 478.9 | 432.3 | |||||
Cash and cash equivalents, end of period | $ | 765.9 | $ | 706.0 |
September 30, 2023 | December 31, 2022 | ||||||||||
Fixed indexed annuity insurance liabilities: | |||||||||||
Host contract liability | $ | 8,284.5 | $ | 7,856.4 | |||||||
Embedded derivatives at fair value | 1,213.4 | 1,297.0 | |||||||||
Total fixed indexed annuity insurance liabilities | $ | 9,497.9 | $ | 9,153.4 |
September 30, 2023 | December 31, 2022 | ||||||||||
Policyholder account balances | $ | 9,960.6 | $ | 9,644.8 | |||||||
Future policy benefits | (462.7) | (491.4) | |||||||||
Total fixed indexed annuity insurance liabilities | $ | 9,497.9 | $ | 9,153.4 |
January 1, 2021 | ||||||||||||||||||||
Amounts prior | ||||||||||||||||||||
to adoption of | Effect of | |||||||||||||||||||
ASU 2018-12 | adoption | As recast | ||||||||||||||||||
Present value of future profits | $ | 249.4 | $ | 10.2 | $ | 259.6 | ||||||||||||||
Deferred acquisition costs | 1,027.8 | 458.0 | 1,485.8 | |||||||||||||||||
Reinsurance receivables | 4,584.3 | 144.1 | 4,728.4 | |||||||||||||||||
Market risk benefit asset | — | 2.5 | 2.5 | |||||||||||||||||
Income tax assets, net | 199.4 | 607.0 | 806.4 | |||||||||||||||||
Total assets | 35,339.9 | 1,221.8 | 36,561.7 | |||||||||||||||||
Policyholder account balances | 12,540.6 | (172.9) | 12,367.7 | |||||||||||||||||
Future policy benefits | 11,744.2 | 3,960.7 | 15,704.9 | |||||||||||||||||
Market risk benefit liability | — | 114.8 | 114.8 | |||||||||||||||||
Liability for policy and contract claims | 561.8 | (470.1) | 91.7 | |||||||||||||||||
Total liabilities | 29,855.7 | 3,432.5 | 33,288.2 | |||||||||||||||||
Retained earnings | 752.3 | (130.9) | (a) | 621.4 | ||||||||||||||||
Accumulated other comprehensive income (loss) | 2,186.1 | (2,079.8) | 106.3 | |||||||||||||||||
Total shareholders' equity | 5,484.2 | (2,210.7) | 3,273.5 |
December 31, 2022 | ||||||||||||||||||||
As previously | Effect of | |||||||||||||||||||
reported | adoption | As recast | ||||||||||||||||||
Present value of future profits | $ | 212.2 | $ | (8.5) | $ | 203.7 | ||||||||||||||
Deferred acquisition costs | 1,913.4 | (142.5) | 1,770.9 | |||||||||||||||||
Reinsurance receivables | 4,241.7 | (18.3) | 4,223.4 | |||||||||||||||||
Market risk benefit asset | — | 65.3 | 65.3 | |||||||||||||||||
Income tax assets, net | 1,165.5 | (102.1) | 1,063.4 | |||||||||||||||||
Total assets | 33,339.2 | (206.1) | 33,133.1 | |||||||||||||||||
Policyholder account balances | 14,858.3 | 375.9 | 15,234.2 | |||||||||||||||||
Future policy benefits | 11,809.1 | (568.9) | 11,240.2 | |||||||||||||||||
Market risk benefit liability | — | 11.3 | 11.3 | |||||||||||||||||
Liability for policy and contract claims | 456.5 | (392.4) | 64.1 | |||||||||||||||||
Total liabilities | 31,938.4 | (574.1) | 31,364.3 | |||||||||||||||||
Retained earnings | 1,459.0 | 232.2 | 1,691.2 | |||||||||||||||||
Accumulated other comprehensive income (loss) | (2,093.1) | 135.8 | (1,957.3) | |||||||||||||||||
Total shareholders' equity | 1,400.8 | 368.0 | 1,768.8 |
Three months ended | ||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||
As previously | Effect of | |||||||||||||||||||
reported | adoption | As recast | ||||||||||||||||||
Insurance policy benefits | $ | 412.2 | $ | (16.1) | $ | 396.1 | ||||||||||||||
Liability for future policy benefits remeasurement loss | — | (5.0) | (5.0) | |||||||||||||||||
Change in fair value of market risk benefits | — | (34.9) | (34.9) | |||||||||||||||||
Amortization | 87.5 | (34.0) | 53.5 | |||||||||||||||||
Other operating costs and expenses | 230.8 | (.7) | 230.1 | |||||||||||||||||
Total benefits and expenses | 768.1 | (90.7) | 677.4 | |||||||||||||||||
Income before income taxes | 137.2 | 90.7 | 227.9 | |||||||||||||||||
Income tax expense | 32.2 | 19.8 | 52.0 | |||||||||||||||||
Net income | 105.0 | 70.9 | 175.9 | |||||||||||||||||
Earnings per common share - basic | $ | 0.92 | $ | 0.62 | $ | 1.54 | ||||||||||||||
Earnings per common share - diluted | 0.91 | 0.61 | 1.52 |
Nine months ended | ||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||
As previously | Effect of | |||||||||||||||||||
reported | adoption | As recast | ||||||||||||||||||
Insurance policy benefits | $ | 1,099.1 | $ | (66.9) | $ | 1,032.2 | ||||||||||||||
Liability for future policy benefits remeasurement loss | — | 2.3 | 2.3 | |||||||||||||||||
Change in fair value of market risk benefits | — | (117.9) | (117.9) | |||||||||||||||||
Amortization | 279.5 | (121.0) | 158.5 | |||||||||||||||||
Other operating costs and expenses | 673.5 | (2.6) | 670.9 | |||||||||||||||||
Total benefits and expenses | 2,141.3 | (306.1) | 1,835.2 | |||||||||||||||||
Income before income taxes | 461.9 | 306.1 | 768.0 | |||||||||||||||||
Income tax expense | 108.5 | 66.9 | 175.4 | |||||||||||||||||
Net income | 353.4 | 239.2 | 592.6 | |||||||||||||||||
Earnings per common share - basic | $ | 3.04 | $ | 2.06 | $ | 5.10 | ||||||||||||||
Earnings per common share - diluted | 2.99 | 2.03 | 5.02 |
As of September 30, 2022 | ||||||||||||||||||||
As previously | Effect of | |||||||||||||||||||
reported | adoption | As recast | ||||||||||||||||||
Retained earnings | $ | 1,431.9 | $ | 237.6 | 1,669.5 | |||||||||||||||
Accumulated other comprehensive loss | (2,165.7) | 327.9 | (1,837.8) | |||||||||||||||||
Total shareholders' equity | 1,297.9 | 565.5 | 1,863.4 |
January 1, 2021 | ||||||||||||||||||||||||||||||||
Asset accounts | ||||||||||||||||||||||||||||||||
Present value of future profits | Deferred acquisition costs | Reinsurance receivables | Market risk benefit asset | Income tax assets, net | ||||||||||||||||||||||||||||
Amounts prior to adoption of ASU 2018-12 | $ | 249.4 | $ | 1,027.8 | $ | 4,584.3 | $ | — | $ | 199.4 | ||||||||||||||||||||||
Unwinding amounts related to unrealized gains (losses) | 10.2 | 458.0 | — | — | — | |||||||||||||||||||||||||||
Changes in measurement of assets | — | — | (81.6) | — | — | |||||||||||||||||||||||||||
Change in discount rates | — | — | 225.7 | — | — | |||||||||||||||||||||||||||
Changes in market benefit reserve basis | — | — | — | 2.5 | — | |||||||||||||||||||||||||||
Tax impacts of changes recognized in accumulated other comprehensive income | — | — | — | — | 570.3 | |||||||||||||||||||||||||||
Tax impacts of changes recognized in retained earnings | — | — | — | — | 36.7 | |||||||||||||||||||||||||||
Amounts, as recast | $ | 259.6 | $ | 1,485.8 | $ | 4,728.4 | $ | 2.5 | $ | 806.4 |
January 1, 2021 | ||||||||||||||||||||||||||
Liability accounts | ||||||||||||||||||||||||||
Policyholder account balances | Future policy benefits | Market risk benefit liability | Liability for policy and contract claims | |||||||||||||||||||||||
Amounts prior to adoption of ASU 2018-12 | $ | 12,540.6 | $ | 11,744.2 | $ | — | $ | 561.8 | ||||||||||||||||||
Unwinding amounts related to unrealized gains (losses) | — | (197.5) | — | — | ||||||||||||||||||||||
Changes in remeasurement of future policy benefits | — | 31.1 | — | — | ||||||||||||||||||||||
Changes in classification of liabilities (1) | (172.9) | 643.0 | — | (470.1) | ||||||||||||||||||||||
Reclass to market risk benefit liability | — | (66.6) | 66.6 | — | ||||||||||||||||||||||
Changes in market risk benefit reserve basis | — | — | 48.2 | — | ||||||||||||||||||||||
Change in discount rates | — | 3,550.7 | — | — | ||||||||||||||||||||||
Amounts, as recast | $ | 12,367.7 | $ | 15,704.9 | $ | 114.8 | $ | 91.7 |
January 1, 2021 | ||||||||||||||
Shareholders' equity accounts | ||||||||||||||
Accumulated other comprehensive income | Retained earnings | |||||||||||||
Amounts prior to adoption of ASU 2018-12 | $ | 2,186.1 | $ | 752.3 | ||||||||||
Unwinding amounts related to unrealized gains (losses) | 665.7 | — | ||||||||||||
Changes in measurement of assets and liabilities | — | (112.7) | ||||||||||||
Change in market risk benefit reserve basis | 9.2 | (54.9) | ||||||||||||
Tax impacts of changes recognized in retained earnings | — | 36.7 | ||||||||||||
Change in discount rates | (3,325.0) | — | ||||||||||||
Tax impacts of changes recognized in accumulated other comprehensive income | 570.3 | — | ||||||||||||
Amounts, as recast | $ | 106.3 | $ | 621.4 |
September 30, 2017 | December 31, 2016 | ||||||
Net unrealized appreciation (depreciation) on fixed maturity securities, available for sale, on which an other-than-temporary impairment loss has been recognized | $ | 2.4 | $ | (1.1 | ) | ||
Net unrealized gains on all other investments | 2,058.9 | 1,311.9 | |||||
Adjustment to present value of future profits (a) | (98.1 | ) | (106.2 | ) | |||
Adjustment to deferred acquisition costs | (287.9 | ) | (223.5 | ) | |||
Adjustment to insurance liabilities | (224.5 | ) | (13.5 | ) | |||
Deferred income tax liabilities | (517.2 | ) | (345.2 | ) | |||
Accumulated other comprehensive income | $ | 933.6 | $ | 622.4 |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Other-than-temporary impairments included in accumulated other comprehensive income | |||||||||||||||
Corporate securities | $ | 13,145.4 | $ | 1,537.6 | $ | (33.0 | ) | $ | 14,650.0 | $ | (3.6 | ) | |||||||
United States Treasury securities and obligations of United States government corporations and agencies | 145.4 | 26.9 | — | 172.3 | — | ||||||||||||||
States and political subdivisions | 1,857.2 | 220.7 | (.9 | ) | 2,077.0 | — | |||||||||||||
Debt securities issued by foreign governments | 58.1 | 3.1 | (.1 | ) | 61.1 | — | |||||||||||||
Asset-backed securities | 2,608.6 | 180.6 | (3.1 | ) | 2,786.1 | — | |||||||||||||
Collateralized debt obligations | 236.5 | 1.4 | — | 237.9 | — | ||||||||||||||
Commercial mortgage-backed securities | 1,311.6 | 37.4 | (10.1 | ) | 1,338.9 | — | |||||||||||||
Mortgage pass-through securities | 2.0 | .2 | — | 2.2 | — | ||||||||||||||
Collateralized mortgage obligations | 727.7 | 77.3 | (.6 | ) | 804.4 | (1.1 | ) | ||||||||||||
Total fixed maturities, available for sale | $ | 20,092.5 | $ | 2,085.2 | $ | (47.8 | ) | $ | 22,129.9 | $ | (4.7 | ) | |||||||
Equity securities | $ | 688.7 | $ | 27.2 | $ | (2.6 | ) | $ | 713.3 |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Other-than-temporary impairments included in accumulated other comprehensive income | |||||||||||||||
Corporate securities | $ | 12,549.9 | $ | 1,100.0 | $ | (139.0 | ) | $ | 13,510.9 | $ | (3.6 | ) | |||||||
United States Treasury securities and obligations of United States government corporations and agencies | 143.8 | 20.5 | — | 164.3 | — | ||||||||||||||
States and political subdivisions | 1,811.8 | 186.7 | (9.6 | ) | 1,988.9 | (3.0 | ) | ||||||||||||
Debt securities issued by foreign governments | 37.1 | .2 | (.4 | ) | 36.9 | — | |||||||||||||
Asset-backed securities | 2,641.5 | 84.3 | (15.5 | ) | 2,710.3 | — | |||||||||||||
Collateralized debt obligations | 230.0 | 1.0 | (.3 | ) | 230.7 | — | |||||||||||||
Commercial mortgage-backed securities | 1,531.0 | 33.1 | (27.9 | ) | 1,536.2 | — | |||||||||||||
Mortgage pass-through securities | 2.3 | .2 | — | 2.5 | — | ||||||||||||||
Collateralized mortgage obligations | 855.7 | 61.4 | (1.6 | ) | 915.5 | (1.4 | ) | ||||||||||||
Total fixed maturities, available for sale | $ | 19,803.1 | $ | 1,487.4 | $ | (194.3 | ) | $ | 21,096.2 | $ | (8.0 | ) | |||||||
Equity securities | $ | 580.7 | $ | 11.5 | $ | (8.0 | ) | $ | 584.2 |
Amortized cost | Estimated fair value | ||||||
(Dollars in millions) | |||||||
Due in one year or less | $ | 398.1 | $ | 406.1 | |||
Due after one year through five years | 2,004.8 | 2,131.7 | |||||
Due after five years through ten years | 1,562.8 | 1,671.1 | |||||
Due after ten years | 11,240.4 | 12,751.5 | |||||
Subtotal | 15,206.1 | 16,960.4 | |||||
Structured securities | 4,886.4 | 5,169.5 | |||||
Total fixed maturities, available for sale | $ | 20,092.5 | $ | 22,129.9 |
Amortized cost | Estimated fair value | ||||||
(Dollars in millions) | |||||||
Due in one year or less | $ | 354.7 | $ | 359.8 | |||
Due after one year through five years | 2,243.8 | 2,399.5 | |||||
Due after five years through ten years | 1,549.1 | 1,620.8 | |||||
Due after ten years | 10,395.0 | 11,320.9 | |||||
Subtotal | 14,542.6 | 15,701.0 | |||||
Structured securities | 5,260.5 | 5,395.2 | |||||
Total fixed maturities, available for sale | $ | 19,803.1 | $ | 21,096.2 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||
Gross realized gains on sale | $ | 32.3 | $ | 7.3 | $ | 60.4 | $ | 127.1 | |||||||
Gross realized losses on sale | (8.5 | ) | (2.8 | ) | (16.4 | ) | (84.4 | ) | |||||||
Impairments: | |||||||||||||||
Total other-than-temporary impairment losses | (3.2 | ) | — | (10.0 | ) | (6.3 | ) | ||||||||
Other-than-temporary impairment losses recognized in accumulated other comprehensive income | — | — | (.9 | ) | — | ||||||||||
Net impairment losses recognized | (3.2 | ) | — | (10.9 | ) | (6.3 | ) | ||||||||
Net realized investment gains from fixed maturities | 20.6 | 4.5 | 33.1 | 36.4 | |||||||||||
Equity securities | 7.7 | 17.2 | 9.6 | 21.3 | |||||||||||
Commercial mortgage loans | — | — | 1.0 | — | |||||||||||
Impairments of other investments | (1.5 | ) | (1.2 | ) | (7.3 | ) | (18.5 | ) | |||||||
Loss on dissolution of variable interest entities | (.6 | ) | — | (4.3 | ) | (7.3 | ) | ||||||||
Other (a) | 3.0 | (8.9 | ) | 20.2 | (8.6 | ) | |||||||||
Net realized investment gains | $ | 29.2 | $ | 11.6 | $ | 52.3 | $ | 23.3 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Credit losses on fixed maturity securities, available for sale, beginning of period | $ | (4.9 | ) | $ | (2.6 | ) | $ | (5.5 | ) | $ | (2.6 | ) | |||
Add: credit losses on other-than-temporary impairments not previously recognized | — | — | — | — | |||||||||||
Less: credit losses on securities sold | — | .1 | 1.6 | .1 | |||||||||||
Less: credit losses on securities impaired due to intent to sell (a) | — | — | — | — | |||||||||||
Add: credit losses on previously impaired securities | — | — | (1.0 | ) | — | ||||||||||
Less: increases in cash flows expected on previously impaired securities | — | — | — | — | |||||||||||
Credit losses on fixed maturity securities, available for sale, end of period | $ | (4.9 | ) | $ | (2.5 | ) | $ | (4.9 | ) | $ | (2.5 | ) |
September 30, 2023 | December 31, 2022 | ||||||||||
Net unrealized losses on investments having no allowance for credit losses | $ | (1,506.2) | $ | (1,247.0) | |||||||
Unrealized losses on investments with an allowance for credit losses | (2,038.5) | (1,780.7) | |||||||||
Change in discount rates for liability for future policy benefits | 1,021.6 | 500.7 | |||||||||
Change in instrument-specific credit risk for market risk benefits | 7.8 | 12.2 | |||||||||
Deferred income tax assets | 558.6 | 557.5 | |||||||||
Accumulated other comprehensive loss | $ | (1,956.7) | $ | (1,957.3) |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Estimated fair value | |||||||||||||||||||||||||
Corporate securities | $ | 13,312.1 | $ | 10.7 | $ | (2,297.1) | $ | (66.8) | $ | 10,958.9 | |||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | 194.2 | — | (28.8) | — | 165.4 | ||||||||||||||||||||||||
States and political subdivisions | 2,848.5 | 7.0 | (547.8) | (1.7) | 2,306.0 | ||||||||||||||||||||||||
Foreign governments | 93.3 | — | (16.6) | (.7) | 76.0 | ||||||||||||||||||||||||
Asset-backed securities | 1,500.2 | .2 | (141.0) | (.2) | 1,359.2 | ||||||||||||||||||||||||
Agency residential mortgage-backed securities | 627.9 | .6 | (12.6) | — | 615.9 | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 1,695.8 | 33.7 | (204.3) | — | 1,525.2 | ||||||||||||||||||||||||
Collateralized loan obligations | 1,077.7 | 1.9 | (20.1) | — | 1,059.5 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 2,549.8 | .6 | (311.3) | — | 2,239.1 | ||||||||||||||||||||||||
Total fixed maturities, available for sale | $ | 23,899.5 | $ | 54.7 | $ | (3,579.6) | $ | (69.4) | $ | 20,305.2 |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Estimated fair value | |||||||||||||||||||||||||
Corporate securities | $ | 13,649.1 | $ | 29.9 | $ | (1,911.9) | $ | (54.4) | $ | 11,712.7 | |||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | 171.7 | — | (13.0) | — | 158.7 | ||||||||||||||||||||||||
States and political subdivisions | 2,846.9 | 19.3 | (476.8) | (.9) | 2,388.5 | ||||||||||||||||||||||||
Foreign governments | 86.3 | .1 | (11.3) | (.4) | 74.7 | ||||||||||||||||||||||||
Asset-backed securities | 1,435.7 | 1.0 | (149.4) | (.3) | 1,287.0 | ||||||||||||||||||||||||
Agency residential mortgage-backed securities | 174.3 | 1.4 | (.7) | — | 175.0 | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 1,700.4 | 40.0 | (191.9) | — | 1,548.5 | ||||||||||||||||||||||||
Collateralized loan obligations | 825.2 | .3 | (39.6) | — | 785.9 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 2,494.6 | .1 | (272.3) | — | 2,222.4 | ||||||||||||||||||||||||
Total fixed maturities, available for sale | $ | 23,384.2 | $ | 92.1 | $ | (3,066.9) | $ | (56.0) | $ | 20,353.4 |
Amortized cost | Estimated fair value | ||||||||||
(Dollars in millions) | |||||||||||
Due in one year or less | $ | 171.9 | $ | 161.9 | |||||||
Due after one year through five years | 2,217.5 | 2,069.5 | |||||||||
Due after five years through ten years | 1,729.0 | 1,551.7 | |||||||||
Due after ten years | 12,329.7 | 9,723.2 | |||||||||
Subtotal | 16,448.1 | 13,506.3 | |||||||||
Structured securities | 7,451.4 | 6,798.9 | |||||||||
Total fixed maturities, available for sale | $ | 23,899.5 | $ | 20,305.2 |
Amortized cost | Estimated fair value | ||||||||||
(Dollars in millions) | |||||||||||
Due in one year or less | $ | 112.0 | $ | 110.8 | |||||||
Due after one year through five years | 1,913.7 | 1,790.2 | |||||||||
Due after five years through ten years | 2,098.9 | 1,910.4 | |||||||||
Due after ten years | 12,629.4 | 10,523.2 | |||||||||
Subtotal | 16,754.0 | 14,334.6 | |||||||||
Structured securities | 6,630.2 | 6,018.8 | |||||||||
Total fixed maturities, available for sale | $ | 23,384.2 | $ | 20,353.4 |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||||||||||||||||
Description of securities | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||||||
Corporate securities | $ | 591.1 | $ | (42.3) | $ | 2,938.4 | $ | (631.8) | $ | 3,529.5 | $ | (674.1) | ||||||||||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | 131.9 | (24.7) | 33.5 | (4.1) | 165.4 | (28.8) | ||||||||||||||||||||||||||||||||
States and political subdivisions | 181.9 | (12.9) | 436.5 | (145.7) | 618.4 | (158.6) | ||||||||||||||||||||||||||||||||
Foreign governments | 6.5 | (.5) | 23.3 | (2.8) | 29.8 | (3.3) | ||||||||||||||||||||||||||||||||
Asset-backed securities | 212.8 | (4.1) | 1,050.6 | (133.6) | 1,263.4 | (137.7) | ||||||||||||||||||||||||||||||||
Agency residential mortgage-backed securities | 505.8 | (12.3) | 7.1 | (.3) | 512.9 | (12.6) | ||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 245.1 | (6.6) | 1,014.5 | (197.7) | 1,259.6 | (204.3) | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | 114.4 | (.4) | 642.6 | (19.7) | 757.0 | (20.1) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 223.3 | (4.3) | 1,927.6 | (307.0) | 2,150.9 | (311.3) | ||||||||||||||||||||||||||||||||
Total fixed maturities, available for sale | $ | 2,212.8 | $ | (108.1) | $ | 8,074.1 | $ | (1,442.7) | $ | 10,286.9 | $ | (1,550.8) |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Description of securities | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | $ | 20.3 | $ | — | $ | .6 | $ | — | $ | 20.9 | $ | — | ||||||||||||
States and political subdivisions | 35.1 | (.6 | ) | 19.3 | (.3 | ) | 54.4 | (.9 | ) | |||||||||||||||
Debt securities issued by foreign governments | 10.5 | (.1 | ) | — | — | 10.5 | (.1 | ) | ||||||||||||||||
Corporate securities | 666.9 | (7.8 | ) | 400.4 | (25.2 | ) | 1,067.3 | (33.0 | ) | |||||||||||||||
Asset-backed securities | 276.7 | (1.3 | ) | 79.6 | (1.8 | ) | 356.3 | (3.1 | ) | |||||||||||||||
Collateralized debt obligations | 24.0 | — | — | — | 24.0 | — | ||||||||||||||||||
Commercial mortgage-backed securities | 226.2 | (1.3 | ) | 221.9 | (8.8 | ) | 448.1 | (10.1 | ) | |||||||||||||||
Collateralized mortgage obligations | 72.8 | (.5 | ) | 11.6 | (.1 | ) | 84.4 | (.6 | ) | |||||||||||||||
Total fixed maturities, available for sale | $ | 1,332.5 | $ | (11.6 | ) | $ | 733.4 | $ | (36.2 | ) | $ | 2,065.9 | $ | (47.8 | ) | |||||||||
Equity securities | $ | 37.4 | $ | (.8 | ) | $ | 89.7 | $ | (1.8 | ) | $ | 127.1 | $ | (2.6 | ) |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||||||||||||||||
Description of securities | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||||||
Corporate securities | $ | 2,830.8 | $ | (329.4) | $ | 370.4 | $ | (129.3) | $ | 3,201.2 | $ | (458.7) | ||||||||||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | 134.4 | (9.6) | 21.9 | (3.4) | 156.3 | (13.0) | ||||||||||||||||||||||||||||||||
States and political subdivisions | 667.0 | (124.8) | 132.1 | (58.5) | 799.1 | (183.3) | ||||||||||||||||||||||||||||||||
Foreign governments | 35.0 | (3.5) | 2.1 | (.3) | 37.1 | (3.8) | ||||||||||||||||||||||||||||||||
Asset-backed securities | 914.0 | (90.1) | 258.1 | (53.4) | 1,172.1 | (143.5) | ||||||||||||||||||||||||||||||||
Agency residential mortgage-backed securities | 59.7 | (.7) | — | — | 59.7 | (.7) | ||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 861.6 | (89.7) | 335.4 | (102.2) | 1,197.0 | (191.9) | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | 553.0 | (27.4) | 184.2 | (12.2) | 737.2 | (39.6) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,581.4 | (160.0) | 593.3 | (112.3) | 2,174.7 | (272.3) | ||||||||||||||||||||||||||||||||
Total fixed maturities, available for sale | $ | 7,636.9 | $ | (835.2) | $ | 1,897.5 | $ | (471.6) | $ | 9,534.4 | $ | (1,306.8) |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Description of securities | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | $ | 8.0 | $ | — | $ | — | $ | — | $ | 8.0 | $ | — | ||||||||||||
States and political subdivisions | 176.3 | (7.8 | ) | 18.3 | (1.8 | ) | 194.6 | (9.6 | ) | |||||||||||||||
Debt securities issued by foreign governments | 18.9 | (.4 | ) | — | — | 18.9 | (.4 | ) | ||||||||||||||||
Corporate securities | 1,907.6 | (75.5 | ) | 559.6 | (63.5 | ) | 2,467.2 | (139.0 | ) | |||||||||||||||
Asset-backed securities | 692.9 | (8.5 | ) | 262.5 | (7.0 | ) | 955.4 | (15.5 | ) | |||||||||||||||
Collateralized debt obligations | 38.3 | (.1 | ) | 30.8 | (.2 | ) | 69.1 | (.3 | ) | |||||||||||||||
Commercial mortgage-backed securities | 525.2 | (16.6 | ) | 154.0 | (11.3 | ) | 679.2 | (27.9 | ) | |||||||||||||||
Collateralized mortgage obligations | 73.6 | (.6 | ) | 34.6 | (1.0 | ) | 108.2 | (1.6 | ) | |||||||||||||||
Total fixed maturities, available for sale | $ | 3,440.8 | $ | (109.5 | ) | $ | 1,059.8 | $ | (84.8 | ) | $ | 4,500.6 | $ | (194.3 | ) | |||||||||
Equity securities | $ | 239.4 | $ | (8.0 | ) | $ | — | $ | — | $ | 239.4 | $ | (8.0 | ) |
Corporate securities | States and political subdivisions | Foreign governments | Asset-backed securities | Total | |||||||||||||||||||||||||||||||
Allowance at June 30, 2023 | $ | 64.4 | $ | 1.0 | $ | .5 | $ | .2 | $ | 66.1 | |||||||||||||||||||||||||
Additions for securities for which credit losses were not previously recorded | 1.2 | — | — | .1 | 1.3 | ||||||||||||||||||||||||||||||
Additions for purchased securities with deteriorated credit | — | — | — | — | — | ||||||||||||||||||||||||||||||
Additions (reductions) for securities where an allowance was previously recorded | 1.5 | .7 | .2 | (.1) | 2.3 | ||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (.3) | — | — | — | (.3) | ||||||||||||||||||||||||||||||
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded | — | — | — | — | — | ||||||||||||||||||||||||||||||
Write-offs | — | — | — | — | — | ||||||||||||||||||||||||||||||
Recoveries of previously written-off amount | — | — | — | — | — | ||||||||||||||||||||||||||||||
Allowance at September 30, 2023 | $ | 66.8 | $ | 1.7 | $ | .7 | $ | .2 | $ | 69.4 |
Corporate securities | States and political subdivisions | Foreign governments | Asset-backed securities | Total | |||||||||||||||||||||||||||||||
Allowance at December 31, 2022 | $ | 54.4 | $ | .9 | $ | .4 | $ | .3 | $ | 56.0 | |||||||||||||||||||||||||
Additions for securities for which credit losses were not previously recorded | 5.9 | .2 | .1 | — | 6.2 | ||||||||||||||||||||||||||||||
Additions for purchased securities with deteriorated credit | — | — | — | — | — | ||||||||||||||||||||||||||||||
Additions (reductions) for securities where an allowance was previously recorded | 9.2 | .6 | .2 | (.1) | 9.9 | ||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (2.7) | — | — | — | (2.7) | ||||||||||||||||||||||||||||||
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded | — | — | — | — | — | ||||||||||||||||||||||||||||||
Write-offs | — | — | — | — | — | ||||||||||||||||||||||||||||||
Recoveries of previously written-off amount | — | — | — | — | — | ||||||||||||||||||||||||||||||
Allowance at September 30, 2023 | $ | 66.8 | $ | 1.7 | $ | .7 | $ | .2 | $ | 69.4 |
Corporate securities | States and political subdivisions | Foreign governments | Asset-backed securities | Total | |||||||||||||||||||||||||||||||
Allowance at June 30, 2022 | $ | 52.2 | $ | 1.1 | $ | .7 | $ | .2 | $ | 54.2 | |||||||||||||||||||||||||
Additions for securities for which credit losses were not previously recorded | 7.2 | .2 | .1 | .1 | 7.6 | ||||||||||||||||||||||||||||||
Additions for purchased securities with deteriorated credit | — | — | — | — | — | ||||||||||||||||||||||||||||||
Additions (reductions) for securities where an allowance was previously recorded | (6.9) | .5 | — | — | (6.4) | ||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (3.3) | (.1) | — | — | (3.4) | ||||||||||||||||||||||||||||||
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded | — | — | — | — | — | ||||||||||||||||||||||||||||||
Write-offs | — | — | — | — | — | ||||||||||||||||||||||||||||||
Recoveries of previously written-off amount | — | — | — | — | — | ||||||||||||||||||||||||||||||
Allowance at September 30, 2022 | $ | 49.2 | $ | 1.7 | $ | .8 | $ | .3 | $ | 52.0 |
Corporate securities | States and political subdivisions | Foreign governments | Asset-backed securities | Total | |||||||||||||||||||||||||||||||
Allowance at December 31, 2021 | $ | 7.4 | $ | — | $ | .2 | $ | — | $ | 7.6 | |||||||||||||||||||||||||
Additions for securities for which credit losses were not previously recorded | 39.8 | .7 | .5 | .2 | 41.2 | ||||||||||||||||||||||||||||||
Additions for purchased securities with deteriorated credit | — | — | — | — | — | ||||||||||||||||||||||||||||||
Additions (reductions) for securities where an allowance was previously recorded | 11.8 | 1.1 | .1 | .1 | 13.1 | ||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (9.8) | (.1) | — | — | (9.9) | ||||||||||||||||||||||||||||||
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded | — | — | — | — | — | ||||||||||||||||||||||||||||||
Write-offs | — | — | — | — | — | ||||||||||||||||||||||||||||||
Recoveries of previously written-off amount | — | — | — | — | — | ||||||||||||||||||||||||||||||
Allowance at September 30, 2022 | $ | 49.2 | $ | 1.7 | $ | .8 | $ | .3 | $ | 52.0 |
Estimated fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratio (a) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total amortized cost | Mortgage loans | Collateral | |||||||||||||||||||||||||||||||||||||||||||||||
Less than 60% | $ | 163.6 | $ | 147.3 | $ | 115.1 | $ | 36.7 | $ | 73.8 | $ | 482.3 | $ | 1,018.8 | $ | 880.8 | $ | 3,789.7 | ||||||||||||||||||||||||||||||||||||||
60% to less than 70% | 47.1 | 87.3 | 11.1 | 5.6 | — | 36.8 | 187.9 | 165.5 | 287.0 | |||||||||||||||||||||||||||||||||||||||||||||||
70% to less than 80% | 19.5 | 77.8 | 24.8 | — | — | 40.1 | 162.2 | 138.7 | 214.1 | |||||||||||||||||||||||||||||||||||||||||||||||
80% to less than 90% | — | — | — | — | — | 17.4 | 17.4 | 15.8 | 20.8 | |||||||||||||||||||||||||||||||||||||||||||||||
90% or greater | — | — | — | — | — | 24.3 | 24.3 | 17.0 | 25.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 230.2 | $ | 312.4 | $ | 151.0 | $ | 42.3 | $ | 73.8 | $ | 600.9 | $ | 1,410.6 | $ | 1,217.8 | $ | 4,336.7 |
Three months ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Allowance at the beginning of the period | $ | 10.3 | $ | 4.9 | ||||||||||
Current period provision for expected credit losses | .6 | .4 | ||||||||||||
Initial allowance recognized for purchased financial assets with credit deterioration | — | — | ||||||||||||
Write-offs charged against the allowance | — | — | ||||||||||||
Recoveries of amounts previously written off | — | — | ||||||||||||
Allowance at the end of the period | $ | 10.9 | $ | 5.3 |
Nine months ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Allowance at the beginning of the period | $ | 8.0 | $ | 5.6 | ||||||||||
Current period provision for expected credit losses | 2.9 | (.3) | ||||||||||||
Initial allowance recognized for purchased financial assets with credit deterioration | — | — | ||||||||||||
Write-offs charged against the allowance | — | — | ||||||||||||
Recoveries of amounts previously written off | — | — | ||||||||||||
Allowance at the end of the period | $ | 10.9 | $ | 5.3 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Realized investment gains (losses): | |||||||||||||||||||||||
Gross realized gains on sales of fixed maturities, available for sale | $ | 1.3 | $ | 18.1 | $ | 11.4 | $ | 96.4 | |||||||||||||||
Gross realized losses on sales of fixed maturities, available for sale | (9.8) | (24.4) | (45.8) | (81.3) | |||||||||||||||||||
Equity securities, net | — | — | (.6) | (8.3) | |||||||||||||||||||
Other, net | (13.1) | (1.9) | (23.0) | (3.2) | |||||||||||||||||||
Total realized investment gains (losses) | (21.6) | (8.2) | (58.0) | 3.6 | |||||||||||||||||||
Change in allowance for credit losses (a) | (2.3) | 7.5 | (13.7) | (46.9) | |||||||||||||||||||
Change in fair value of equity securities (b) | (.9) | (.7) | (.5) | (2.4) | |||||||||||||||||||
Other changes in fair value (c) | (4.5) | (16.3) | (7.0) | (53.5) | |||||||||||||||||||
Other investment losses | (7.7) | (9.5) | (21.2) | (102.8) | |||||||||||||||||||
Total investment losses | $ | (29.3) | $ | (17.7) | $ | (79.2) | $ | (99.2) |
Nine months ended | ||||||||||||||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||||||||
Supplemental health | Medicare supplement | Long-term care | Traditional life | Other annuities | ||||||||||||||||||||||||||||
Present value of expected net premiums ("PVENP"), beginning of period | $ | 2,781.3 | $ | 2,800.6 | $ | 1,034.1 | $ | 2,175.0 | $ | — | ||||||||||||||||||||||
Effect of changes in discount rate assumptions, beginning of period | 188.4 | 196.4 | 23.2 | 137.1 | — | |||||||||||||||||||||||||||
Beginning PVENP at original discount rate | 2,969.7 | 2,997.0 | 1,057.3 | 2,312.1 | — | |||||||||||||||||||||||||||
Effect of changes in cash flow assumptions | — | — | — | — | — | |||||||||||||||||||||||||||
Effect of actual variances from expected experience | (40.9) | (4.2) | 20.7 | (47.0) | — | |||||||||||||||||||||||||||
Adjusted beginning of period PVENP | 2,928.8 | 2,992.8 | 1,078.0 | 2,265.1 | — | |||||||||||||||||||||||||||
Issuances | 205.1 | 238.9 | 56.3 | 300.7 | 4.7 | |||||||||||||||||||||||||||
Interest accrual | 96.7 | 91.3 | 37.1 | 70.0 | — | |||||||||||||||||||||||||||
Net premiums collected | (267.0) | (324.5) | (120.6) | (301.5) | (4.7) | |||||||||||||||||||||||||||
Ending PVENP at original discount rate | 2,963.6 | 2,998.5 | 1,050.8 | 2,334.3 | — | |||||||||||||||||||||||||||
Effect of changes in discount rate assumptions, end of period | (295.1) | (274.1) | (53.4) | (188.6) | — | |||||||||||||||||||||||||||
PVENP, end of period | $ | 2,668.5 | $ | 2,724.4 | $ | 997.4 | $ | 2,145.7 | $ | — |
Present value of expected future policy benefits ("PVEFPB"), beginning of period | $ | 5,886.8 | $ | 3,033.1 | $ | 4,158.1 | $ | 4,417.9 | $ | 310.9 | ||||||||||||||||||||||
Effect of changes in discount rate assumptions, beginning of period | 483.3 | 212.0 | 28.5 | 336.6 | 15.4 | |||||||||||||||||||||||||||
Beginning PVEFPB at original discount rate | 6,370.1 | 3,245.1 | 4,186.6 | 4,754.5 | 326.3 | |||||||||||||||||||||||||||
Effect of changes in cash flow assumptions | — | — | — | — | — | |||||||||||||||||||||||||||
Effect of actual variances from expected experience | (46.9) | 7.4 | 30.3 | (59.1) | 1.8 | |||||||||||||||||||||||||||
Adjusted beginning of period PVEFPB | 6,323.2 | 3,252.5 | 4,216.9 | 4,695.4 | 328.1 | |||||||||||||||||||||||||||
Issuances | 205.3 | 238.9 | 56.5 | 307.8 | 4.7 | |||||||||||||||||||||||||||
Interest accrual | 222.6 | 99.3 | 167.3 | 154.3 | 11.1 | |||||||||||||||||||||||||||
Benefit payments | (314.2) | (362.1) | (214.0) | (325.8) | (25.8) | |||||||||||||||||||||||||||
Ending PVEFPB at original discount rate | 6,436.9 | 3,228.6 | 4,226.7 | 4,831.7 | 318.1 | |||||||||||||||||||||||||||
Effect of changes in discount rate assumptions, end of period | (801.6) | (295.5) | (252.1) | (510.9) | (30.9) | |||||||||||||||||||||||||||
PVEFPB, end of period | $ | 5,635.3 | $ | 2,933.1 | $ | 3,974.6 | $ | 4,320.8 | $ | 287.2 |
Net liability for future policy benefits | $ | 2,966.8 | $ | 208.7 | $ | 2,977.2 | $ | 2,175.1 | $ | 287.2 | ||||||||||||||||||||||
Flooring impact | — | .2 | — | — | — | |||||||||||||||||||||||||||
Adjusted net liability for future policy benefits | 2,966.8 | 208.9 | 2,977.2 | 2,175.1 | 287.2 | |||||||||||||||||||||||||||
Related reinsurance recoverable | (1.3) | — | (330.4) | (182.2) | — | |||||||||||||||||||||||||||
Net liability for future policy benefits, net of reinsurance recoverable | $ | 2,965.5 | $ | 208.9 | $ | 2,646.8 | $ | 1,992.9 | $ | 287.2 |
Nine months ended | ||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
Supplemental health | Medicare supplement | Long-term care | Traditional life | Other annuities | ||||||||||||||||||||||||||||
PVENP, beginning of period | $ | 3,496.8 | $ | 3,454.0 | $ | 1,313.4 | $ | 2,483.7 | $ | — | ||||||||||||||||||||||
Effect of changes in discount rate assumptions, beginning of period | (525.6) | (341.8) | (183.2) | (239.4) | — | |||||||||||||||||||||||||||
Beginning PVENP at original discount rate | 2,971.2 | 3,112.2 | 1,130.2 | 2,244.3 | — | |||||||||||||||||||||||||||
Effect of changes in cash flow assumptions | — | — | — | — | — | |||||||||||||||||||||||||||
Effect of actual variances from expected experience | (24.0) | (32.7) | (14.5) | (43.6) | — | |||||||||||||||||||||||||||
Adjusted beginning of period PVENP | 2,947.2 | 3,079.5 | 1,115.7 | 2,200.7 | — | |||||||||||||||||||||||||||
Issuances | 234.2 | 204.7 | 70.9 | 397.6 | 5.6 | |||||||||||||||||||||||||||
Interest accrual | 92.4 | 88.3 | 38.4 | 61.6 | — | |||||||||||||||||||||||||||
Net premiums collected | (265.0) | (346.3) | (127.1) | (300.7) | (5.6) | |||||||||||||||||||||||||||
Ending PVENP at original discount rate | 3,008.8 | 3,026.2 | 1,097.9 | 2,359.2 | — | |||||||||||||||||||||||||||
Effect of changes in discount rate assumptions, end of period | (273.5) | (260.3) | (43.8) | (205.1) | — | |||||||||||||||||||||||||||
PVENP, end of period | $ | 2,735.3 | $ | 2,765.9 | $ | 1,054.1 | $ | 2,154.1 | $ | — |
PVEFPB, beginning of period | $ | 7,688.0 | $ | 3,750.5 | $ | 5,501.6 | $ | 5,395.7 | $ | 431.9 | ||||||||||||||||||||||
Effect of changes in discount rate assumptions, beginning of period | (1,414.8) | (373.8) | (1,291.2) | (767.3) | (88.4) | |||||||||||||||||||||||||||
Beginning PVEFPB at original discount rate | 6,273.2 | 3,376.7 | 4,210.4 | 4,628.4 | 343.5 | |||||||||||||||||||||||||||
Effect of changes in cash flow assumptions | — | — | — | — | — | |||||||||||||||||||||||||||
Effect of actual variances from expected experience | (25.9) | (35.1) | (23.7) | (48.8) | (4.1) | |||||||||||||||||||||||||||
Adjusted beginning of period PVEFPB | 6,247.3 | 3,341.6 | 4,186.7 | 4,579.6 | 339.4 | |||||||||||||||||||||||||||
Issuances | 234.7 | 204.0 | 70.9 | 407.6 | 6.4 | |||||||||||||||||||||||||||
Interest accrual | 216.3 | 96.7 | 167.6 | 144.4 | 11.4 | |||||||||||||||||||||||||||
Benefit payments | (312.4) | (362.9) | (198.1) | (363.2) | (27.4) | |||||||||||||||||||||||||||
Ending PVEFPB at original discount rate | 6,385.9 | 3,279.4 | 4,227.1 | 4,768.4 | 329.8 | |||||||||||||||||||||||||||
Effect of changes in discount rate assumptions, end of period | (699.7) | (280.6) | (157.7) | (496.7) | (25.3) | |||||||||||||||||||||||||||
PVEFPB, end of period | $ | 5,686.2 | $ | 2,998.8 | $ | 4,069.4 | $ | 4,271.7 | $ | 304.5 |
Net liability for future policy benefits | $ | 2,950.9 | $ | 232.9 | $ | 3,015.3 | $ | 2,117.6 | $ | 304.5 | ||||||||||||||||||||||
Flooring impact | 37.6 | .3 | 16.3 | 9.3 | — | |||||||||||||||||||||||||||
Adjusted net liability for future policy benefits | 2,988.5 | 233.2 | 3,031.6 | 2,126.9 | 304.5 | |||||||||||||||||||||||||||
Related reinsurance recoverable | (3.0) | — | (318.0) | (196.1) | — | |||||||||||||||||||||||||||
Net liability for future policy benefits, net of reinsurance recoverable | $ | 2,985.5 | $ | 233.2 | $ | 2,713.6 | $ | 1,930.8 | $ | 304.5 |
September 30, 2023 | September 30, 2022 | |||||||||||||
Balances included in the future policy benefits rollforwards: | ||||||||||||||
Supplemental health | $ | 2,966.8 | $ | 2,988.5 | ||||||||||
Medicare supplement | 208.9 | 233.2 | ||||||||||||
Long-term care | 2,977.2 | 3,031.6 | ||||||||||||
Traditional life | 2,175.1 | 2,126.9 | ||||||||||||
Other annuities | 287.2 | 304.5 | ||||||||||||
Reserves excluded from rollforward (1) | 2,574.0 | 2,616.1 | ||||||||||||
Deferred profit liability | 60.8 | 50.4 | ||||||||||||
Amount of reserves above (below) policyholder account balances (2) | (454.7) | (569.8) | ||||||||||||
Future loss reserves (3) | 34.6 | 34.1 | ||||||||||||
Future policy benefits | $ | 10,829.9 | $ | 10,815.5 |
Nine months ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net liability (asset), beginning of period | $ | (54.0) | $ | 86.2 | ||||||||||
Effect of changes in the instrument-specific credit risk, beginning of period | 12.2 | 12.1 | ||||||||||||
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | (41.8) | 98.3 | ||||||||||||
Issuances | (.4) | (1.5) | ||||||||||||
Interest accrual | 15.8 | 11.6 | ||||||||||||
Attributed fees collected | — | — | ||||||||||||
Benefit payments | — | — | ||||||||||||
Effect of changes in interest rates | (36.2) | (140.3) | ||||||||||||
Effect of changes in equity markets | 4.1 | (7.9) | ||||||||||||
Effect of changes in equity index volatility | (17.5) | 20.6 | ||||||||||||
Actual policyholder behavior different from expected behavior | 2.5 | .1 | ||||||||||||
Effect of changes in future expected policyholder behavior - other | — | — | ||||||||||||
Effect of changes in future expected policyholder behavior - risk margin | — | — | ||||||||||||
Effect of changes in assumptions | (4.9) | (.4) | ||||||||||||
Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk | (78.4) | (19.5) | ||||||||||||
Effect of changes in the instrument-specific credit risk, end of period | (7.8) | (23.1) | ||||||||||||
Net asset, end of period | (86.2) | (42.6) | ||||||||||||
Reinsurance recoverable, end of period | — | — | ||||||||||||
Net asset, end of period, net of reinsurance | $ | (86.2) | $ | (42.6) | ||||||||||
Balance reported as an asset | $ | 89.3 | $ | 56.3 | ||||||||||
Balance reported as a liability | 3.1 | 13.7 | ||||||||||||
Net asset | $ | (86.2) | $ | (42.6) | ||||||||||
Net amount at risk | $ | 51.0 | $ | 51.7 | ||||||||||
Weighted average attained age of contract holders | 69 | 68 |
Gross premiums (a) | Interest accretion (b) | |||||||||||||||||||||||||
Nine months ended | Nine months ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Other annuities | $ | 5.7 | $ | 6.8 | $ | 11.1 | $ | 11.4 | ||||||||||||||||||
Supplemental health | 530.3 | 519.8 | 125.9 | 123.9 | ||||||||||||||||||||||
Medicare supplement | 453.4 | 487.7 | 8.0 | 8.4 | ||||||||||||||||||||||
Long-term care | 243.1 | 245.6 | 130.2 | 129.2 | ||||||||||||||||||||||
Traditional life | 534.6 | 518.9 | 84.3 | 82.8 | ||||||||||||||||||||||
Total | $ | 1,767.1 | $ | 1,778.8 | $ | 359.5 | $ | 355.7 |
September 30, 2023 | September 30, 2022 | |||||||||||||||||||||||||
Undiscounted | Discounted (a) | Undiscounted | Discounted (a) | |||||||||||||||||||||||
Other annuities | ||||||||||||||||||||||||||
Expected future gross premiums | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Expected future benefits and expenses | 385.9 | 287.2 | 409.3 | 304.5 | ||||||||||||||||||||||
Supplemental health | ||||||||||||||||||||||||||
Expected future gross premiums | 9,031.2 | 5,287.4 | 8,866.2 | 5,310.3 | ||||||||||||||||||||||
Expected future benefits and expenses | 10,163.1 | 5,635.3 | 10,948.7 | 5,686.2 | ||||||||||||||||||||||
Medicare supplement | ||||||||||||||||||||||||||
Expected future gross premiums | 5,589.1 | 3,756.3 | 5,521.0 | 3,857.2 | ||||||||||||||||||||||
Expected future benefits and expenses | 4,387.4 | 2,933.1 | 4,318.6 | 2,998.8 | ||||||||||||||||||||||
Long-term care | ||||||||||||||||||||||||||
Expected future gross premiums | 2,967.0 | 2,054.0 | 2,974.1 | 2,097.9 | ||||||||||||||||||||||
Expected future benefits and expenses | 7,483.6 | 3,974.6 | 7,546.5 | 4,069.4 | ||||||||||||||||||||||
Traditional life | ||||||||||||||||||||||||||
Expected future gross premiums | 5,542.6 | 3,840.1 | 5,448.2 | 3,835.7 | ||||||||||||||||||||||
Expected future benefits and expenses | 7,478.6 | 4,320.8 | 7,250.8 | 4,271.7 |
September 30, 2023 | September 30, 2022 | |||||||||||||
Other annuities | 9.7 | 9.7 | ||||||||||||
Supplemental health | 11.7 | 12.0 | ||||||||||||
Medicare supplement | 6.0 | 6.1 | ||||||||||||
Long-term care | 10.3 | 10.7 | ||||||||||||
Traditional life | 10.4 | 10.8 |
September 30, 2023 | September 30, 2022 | |||||||||||||
Other annuities | ||||||||||||||
Interest accretion rate | 4.79 | % | 4.71 | % | ||||||||||
Current discount rate | 6.10 | % | 5.76 | % | ||||||||||
Supplemental health | ||||||||||||||
Interest accretion rate | 5.02 | % | 5.06 | % | ||||||||||
Current discount rate | 6.09 | % | 5.72 | % | ||||||||||
Medicare supplement | ||||||||||||||
Interest accretion rate | 4.28 | % | 4.21 | % | ||||||||||
Current discount rate | 5.88 | % | 5.50 | % | ||||||||||
Long-term care | ||||||||||||||
Interest accretion rate | 5.66 | % | 5.69 | % | ||||||||||
Current discount rate | 6.13 | % | 5.83 | % | ||||||||||
Traditional life | ||||||||||||||
Interest accretion rate | 4.77 | % | 4.76 | % | ||||||||||
Current discount rate | 6.11 | % | 5.77 | % |
Nine months ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Fixed indexed annuities | Fixed interest annuities | Other annuities | Interest-sensitive life | Funding agreements | Other (a) | |||||||||||||||||||||||||||||||||
Balance, beginning of period excluding contracts 100% ceded | $ | 9,490.4 | $ | 1,663.1 | $ | 127.1 | $ | 1,209.6 | $ | 1,410.8 | $ | 395.5 | ||||||||||||||||||||||||||
Issuances (funds collected from new business) | 996.6 | 139.5 | — | 30.0 | — | — | ||||||||||||||||||||||||||||||||
Premiums received (premiums collected from inforce business) | .3 | 2.1 | 21.5 | 152.4 | — | 201.0 | ||||||||||||||||||||||||||||||||
Policy charges | (14.4) | (.7) | — | (140.4) | — | — | ||||||||||||||||||||||||||||||||
Surrenders and withdrawals | (538.4) | (124.7) | (30.3) | (24.3) | (24.2) | (216.6) | ||||||||||||||||||||||||||||||||
Benefit payments | (185.0) | (80.8) | (4.6) | (19.6) | — | (.1) | ||||||||||||||||||||||||||||||||
Interest credited | 52.7 | 34.2 | 1.8 | 30.5 | 21.6 | 2.0 | ||||||||||||||||||||||||||||||||
Other | 17.0 | (.2) | (.3) | (.4) | — | — | ||||||||||||||||||||||||||||||||
Balance, end of period excluding contracts 100% ceded | 9,819.2 | 1,632.5 | 115.2 | 1,237.8 | 1,408.2 | 381.8 | ||||||||||||||||||||||||||||||||
Balance, end of period for contracts 100% ceded | 141.4 | 602.2 | 26.2 | 107.0 | — | 10.3 | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 9,960.6 | $ | 2,234.7 | $ | 141.4 | $ | 1,344.8 | $ | 1,408.2 | $ | 392.1 | ||||||||||||||||||||||||||
Balance, end of period, reinsurance ceded | (141.4) | (602.2) | (26.2) | (125.2) | — | (24.3) | ||||||||||||||||||||||||||||||||
Balance, end of period, net of reinsurance | $ | 9,819.2 | $ | 1,632.5 | $ | 115.2 | $ | 1,219.6 | $ | 1,408.2 | $ | 367.8 |
Weighted average crediting rate | 1.7 | % | 2.8 | % | 2.4 | % | 4.0 | % | 2.0 | % | 0.8 | % | ||||||||||||||||||||||||||
Net amount at risk (b) | $ | — | $ | — | $ | — | $ | 27,851.0 | $ | — | $ | — | ||||||||||||||||||||||||||
Cash surrender value, net of reinsurance | $ | 9,152.8 | $ | 1,609.4 | $ | 115.2 | $ | 997.8 | $ | — | $ | 367.8 |
Nine months ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Fixed indexed annuities | Fixed interest annuities | Other annuities | Interest-sensitive life | Funding agreements | Other (a) | |||||||||||||||||||||||||||||||||
Balance, beginning of period excluding contracts 100% ceded | $ | 8,681.0 | $ | 1,806.1 | $ | 131.2 | $ | 1,163.9 | $ | 502.0 | $ | 368.0 | ||||||||||||||||||||||||||
Issuances (funds collected from new business) | 1,111.9 | 52.2 | — | 31.4 | 899.0 | — | ||||||||||||||||||||||||||||||||
Premiums received (premiums collected from inforce business) | .2 | 2.9 | 25.9 | 143.5 | — | 196.2 | ||||||||||||||||||||||||||||||||
Policy charges | (10.4) | (.6) | — | (135.4) | — | — | ||||||||||||||||||||||||||||||||
Surrenders and withdrawals | (388.6) | (113.0) | (26.0) | (20.3) | (14.3) | (175.4) | ||||||||||||||||||||||||||||||||
Benefit payments | (192.5) | (102.9) | (4.3) | (19.1) | — | — | ||||||||||||||||||||||||||||||||
Interest credited | 102.8 | 34.3 | 1.8 | 34.9 | 21.3 | 1.9 | ||||||||||||||||||||||||||||||||
Other | 15.5 | .3 | — | — | — | — | ||||||||||||||||||||||||||||||||
Balance, end of period excluding contracts 100% ceded | 9,319.9 | 1,679.3 | 128.6 | 1,198.9 | 1,408.0 | 390.7 | ||||||||||||||||||||||||||||||||
Balance, end of period for contracts 100% ceded | 158.7 | 644.4 | 26.5 | 114.0 | — | 10.7 | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 9,478.6 | $ | 2,323.7 | $ | 155.1 | $ | 1,312.9 | $ | 1,408.0 | $ | 401.4 | ||||||||||||||||||||||||||
Balance, end of period, reinsurance ceded | (158.7) | (644.4) | (26.5) | (134.9) | — | (25.2) | ||||||||||||||||||||||||||||||||
Balance, end of period, net of reinsurance | $ | 9,319.9 | $ | 1,679.3 | $ | 128.6 | $ | 1,178.0 | $ | 1,408.0 | $ | 376.2 |
Weighted average crediting rate | 1.4 | % | 2.6 | % | 2.2 | % | 4.3 | % | 2.0 | % | 0.8 | % | ||||||||||||||||||||||||||
Net amount at risk (b) | $ | — | $ | — | $ | — | $ | 26,029.5 | $ | — | $ | — | ||||||||||||||||||||||||||
Cash surrender value, net of reinsurance | $ | 8,684.3 | $ | 1,669.3 | $ | 128.6 | $ | 954.7 | $ | — | $ | 376.2 |
September 30, 2023 | September 30, 2022 | |||||||||||||
Amounts included in the liability for policyholder account balances rollforwards: | ||||||||||||||
Fixed indexed annuities | $ | 9,960.6 | $ | 9,478.6 | ||||||||||
Fixed interest annuities | 2,234.7 | 2,323.7 | ||||||||||||
Other annuities | 141.4 | 155.1 | ||||||||||||
Interest-sensitive life | 1,344.8 | 1,312.9 | ||||||||||||
Funding agreements | 1,408.2 | 1,408.0 | ||||||||||||
Other | 392.1 | 401.4 | ||||||||||||
Total | $ | 15,481.8 | $ | 15,079.7 |
September 30, 2023 | ||||||||||||||||||||||||||||||||
Range of guaranteed minimum crediting rates (a) | At guaranteed minimum | 1-50 basis points above | 51-150 basis points above | Greater than 150 basis points above | Total | |||||||||||||||||||||||||||
Fixed interest annuities | ||||||||||||||||||||||||||||||||
0.00%-2.99% | $ | 122.3 | $ | 257.4 | $ | 183.4 | $ | 79.1 | $ | 642.2 | ||||||||||||||||||||||
3.00%-4.99% | 1,475.8 | 27.1 | — | — | 1,502.9 | |||||||||||||||||||||||||||
5.00% and greater | 89.6 | — | — | — | 89.6 | |||||||||||||||||||||||||||
Subtotal | 1,687.7 | 284.5 | 183.4 | 79.1 | 2,234.7 | |||||||||||||||||||||||||||
Other annuities | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 36.4 | 25.3 | — | — | 61.7 | |||||||||||||||||||||||||||
3.00%-4.99% | 46.4 | — | — | — | 46.4 | |||||||||||||||||||||||||||
5.00% and greater | 33.3 | — | — | — | 33.3 | |||||||||||||||||||||||||||
Subtotal | 116.1 | 25.3 | — | — | 141.4 | |||||||||||||||||||||||||||
Interest-sensitive life | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 22.0 | 37.2 | 298.5 | 305.1 | 662.8 | |||||||||||||||||||||||||||
3.00%-4.99% | 451.2 | 50.5 | 157.5 | .5 | 659.7 | |||||||||||||||||||||||||||
5.00% and greater | 21.8 | .5 | — | — | 22.3 | |||||||||||||||||||||||||||
Subtotal | 495.0 | 88.2 | 456.0 | 305.6 | 1,344.8 | |||||||||||||||||||||||||||
Funding agreements | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 1,408.2 | — | — | — | 1,408.2 | |||||||||||||||||||||||||||
3.00%-4.99% | — | — | — | — | — | |||||||||||||||||||||||||||
5.00% and greater | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal | 1,408.2 | — | — | — | 1,408.2 | |||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 17.5 | 351.2 | — | — | 368.7 | |||||||||||||||||||||||||||
3.00%-4.99% | 23.2 | — | — | — | 23.2 | |||||||||||||||||||||||||||
5.00% and greater | .2 | — | — | — | .2 | |||||||||||||||||||||||||||
Subtotal | 40.9 | 351.2 | — | — | 392.1 | |||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 1,606.4 | 671.1 | 481.9 | 384.2 | 3,143.6 | |||||||||||||||||||||||||||
3.00%-4.99% | 1,996.6 | 77.6 | 157.5 | .5 | 2,232.2 | |||||||||||||||||||||||||||
5.00% and greater | 144.9 | .5 | — | — | 145.4 | |||||||||||||||||||||||||||
Total policyholder account balances, excluding fixed indexed annuities | $ | 3,747.9 | $ | 749.2 | $ | 639.4 | $ | 384.7 | 5,521.2 | |||||||||||||||||||||||
Fixed indexed annuity account balances | 9,960.6 | |||||||||||||||||||||||||||||||
Total policyholder account balances | $ | 15,481.8 |
September 30, 2022 | ||||||||||||||||||||||||||||||||
Range of guaranteed minimum crediting rates (a) | At guaranteed minimum | 1-50 basis points above | 51-150 basis points above | Greater than 150 basis points above | Total | |||||||||||||||||||||||||||
Fixed interest annuities | ||||||||||||||||||||||||||||||||
0.00%-2.99% | $ | 163.8 | $ | 319.6 | $ | 29.9 | $ | 44.1 | $ | 557.4 | ||||||||||||||||||||||
3.00%-4.99% | 1,651.7 | 22.4 | .1 | — | 1,674.2 | |||||||||||||||||||||||||||
5.00% and greater | 92.1 | — | — | — | 92.1 | |||||||||||||||||||||||||||
Subtotal | 1,907.6 | 342.0 | 30.0 | 44.1 | 2,323.7 | |||||||||||||||||||||||||||
Other annuities | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 49.2 | 30.2 | — | — | 79.4 | |||||||||||||||||||||||||||
3.00%-4.99% | 39.8 | — | — | — | 39.8 | |||||||||||||||||||||||||||
5.00% and greater | 35.9 | — | — | — | 35.9 | |||||||||||||||||||||||||||
Subtotal | 124.9 | 30.2 | — | — | 155.1 | |||||||||||||||||||||||||||
Interest-sensitive life | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 8.1 | — | .6 | 619.2 | 627.9 | |||||||||||||||||||||||||||
3.00%-4.99% | 404.1 | 103.0 | 154.8 | .2 | 662.1 | |||||||||||||||||||||||||||
5.00% and greater | 22.4 | .5 | — | — | 22.9 | |||||||||||||||||||||||||||
Subtotal | 434.6 | 103.5 | 155.4 | 619.4 | 1,312.9 | |||||||||||||||||||||||||||
Funding agreements | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 1,408.0 | — | — | — | 1,408.0 | |||||||||||||||||||||||||||
3.00%-4.99% | — | — | — | — | — | |||||||||||||||||||||||||||
5.00% and greater | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal | 1,408.0 | — | — | — | 1,408.0 | |||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 18.2 | 358.7 | — | — | 376.9 | |||||||||||||||||||||||||||
3.00%-4.99% | 24.1 | — | — | — | 24.1 | |||||||||||||||||||||||||||
5.00% and greater | .4 | — | — | — | .4 | |||||||||||||||||||||||||||
Subtotal | 42.7 | 358.7 | — | — | 401.4 | |||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
0.00%-2.99% | 1,647.3 | 708.5 | 30.5 | 663.3 | 3,049.6 | |||||||||||||||||||||||||||
3.00%-4.99% | 2,119.7 | 125.4 | 154.9 | .2 | 2,400.2 | |||||||||||||||||||||||||||
5.00% and greater | 150.8 | .5 | — | — | 151.3 | |||||||||||||||||||||||||||
Total policyholder account balances, excluding fixed indexed annuities | $ | 3,917.8 | $ | 834.4 | $ | 185.4 | $ | 663.5 | 5,601.1 | |||||||||||||||||||||||
Fixed indexed annuity account balances | 9,478.6 | |||||||||||||||||||||||||||||||
Total policyholder account balances | $ | 15,079.7 |
Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuities | Fixed interest annuities | Supplemental health | Medicare supplement | Long-term care | Interest-sensitive life | Traditional life | Funding agreements | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | $ | 365.6 | $ | 19.6 | $ | 378.8 | $ | 161.2 | $ | 137.9 | $ | 212.2 | $ | 409.1 | $ | 6.0 | $ | 1,690.4 | ||||||||||||||||||||||||||||||||||||||
Capitalizations | 65.5 | 8.0 | 43.8 | 17.7 | 11.3 | 27.5 | 86.9 | — | 260.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense | (34.1) | (2.8) | (23.2) | (21.0) | (11.5) | (10.7) | (37.9) | (1.2) | (142.4) | |||||||||||||||||||||||||||||||||||||||||||||||
End of period | $ | 397.0 | $ | 24.8 | $ | 399.4 | $ | 157.9 | $ | 137.7 | $ | 229.0 | $ | 458.1 | $ | 4.8 | $ | 1,808.7 |
Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuities | Fixed interest annuities | Supplemental health | Medicare supplement | Long-term care | Interest-sensitive life | Traditional life | Funding agreements | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | $ | 313.0 | $ | 19.0 | $ | 357.5 | $ | 170.2 | $ | 136.4 | $ | 196.3 | $ | 357.6 | $ | 3.3 | $ | 1,553.3 | ||||||||||||||||||||||||||||||||||||||
Capitalizations | 68.6 | 2.6 | 37.0 | 15.7 | 12.7 | 22.1 | 69.8 | 4.2 | 232.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense | (29.7) | (2.6) | (21.7) | (22.4) | (11.5) | (10.4) | (31.6) | (1.1) | (131.0) | |||||||||||||||||||||||||||||||||||||||||||||||
End of period | $ | 351.9 | $ | 19.0 | $ | 372.8 | $ | 163.5 | $ | 137.6 | $ | 208.0 | $ | 395.8 | $ | 6.4 | $ | 1,655.0 |
Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Supplemental health | Medicare supplement | Long-term care | Traditional life | Fixed indexed annuities | Fixed interest annuities | Total | ||||||||||||||||||||||||||||||||||||||
Beginning of period | $ | 154.0 | $ | 27.5 | $ | 6.2 | $ | 14.8 | $ | .8 | $ | .4 | $ | 203.7 | ||||||||||||||||||||||||||||||
Amortization expense | (9.8) | (5.3) | (.8) | (1.4) | (.1) | (.1) | (17.5) | |||||||||||||||||||||||||||||||||||||
End of period | $ | 144.2 | $ | 22.2 | $ | 5.4 | $ | 13.4 | $ | .7 | $ | .3 | $ | 186.2 |
Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Supplemental health | Medicare supplement | Long-term care | Traditional life | Fixed indexed annuities | Fixed interest annuities | Total | ||||||||||||||||||||||||||||||||||||||
Beginning of period | $ | 168.1 | $ | 36.5 | $ | 7.3 | $ | 16.9 | $ | .9 | $ | .4 | $ | 230.1 | ||||||||||||||||||||||||||||||
Amortization expense | (10.6) | (6.9) | (.9) | (1.6) | (.1) | — | (20.1) | |||||||||||||||||||||||||||||||||||||
End of period | $ | 157.5 | $ | 29.6 | $ | 6.4 | $ | 15.3 | $ | .8 | $ | .4 | $ | 210.0 |
Nine months ended | ||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||
Fixed indexed annuities | Fixed interest annuities | Total | ||||||||||||||||||
Beginning of period | $ | 76.0 | $ | 4.5 | $ | 80.5 | ||||||||||||||
Capitalizations | 16.3 | .6 | 16.9 | |||||||||||||||||
Amortization expense | (8.0) | (.6) | (8.6) | |||||||||||||||||
End of period | $ | 84.3 | $ | 4.5 | $ | 88.8 |
Nine months ended | ||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||
Fixed indexed annuities | Fixed interest annuities | Total | ||||||||||||||||||
Beginning of period | $ | 63.0 | $ | 5.0 | $ | 68.0 | ||||||||||||||
Capitalizations | 15.5 | .3 | 15.8 | |||||||||||||||||
Amortization expense | (6.7) | (.7) | (7.4) | |||||||||||||||||
End of period | $ | 71.8 | $ | 4.6 | $ | 76.4 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income for basic and diluted earnings per share | $ | 167.3 | $ | 175.9 | $ | 240.2 | $ | 592.6 | |||||||||||||||
Shares: | |||||||||||||||||||||||
Weighted average shares outstanding for basic earnings per share | 112,689 | 114,354 | 113,836 | 116,170 | |||||||||||||||||||
Effect of dilutive securities on weighted average shares: | |||||||||||||||||||||||
Amounts related to employee benefit plans | 1,773 | 1,574 | 1,777 | 1,902 | |||||||||||||||||||
Weighted average shares outstanding for diluted earnings per share | 114,462 | 115,928 | 115,613 | 118,072 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income for basic and diluted earnings per share | $ | 100.8 | $ | 18.6 | $ | 246.5 | $ | 124.0 | |||||||
Shares: | |||||||||||||||
Weighted average shares outstanding for basic earnings per share | 168,684 | 174,247 | 170,890 | 177,640 | |||||||||||
Effect of dilutive securities on weighted average shares: | |||||||||||||||
Stock options, restricted stock and performance units | 2,298 | 1,476 | 1,910 | 1,733 | |||||||||||
Weighted average shares outstanding for diluted earnings per share | 170,982 | 175,723 | 172,800 | 179,373 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Annuity: | |||||||||||||||||||||||
Insurance policy income | $ | 7.2 | $ | 6.3 | $ | 20.4 | $ | 17.1 | |||||||||||||||
Net investment income | 131.0 | 121.1 | 384.1 | 356.4 | |||||||||||||||||||
Total annuity revenues | 138.2 | 127.4 | 404.5 | 373.5 | |||||||||||||||||||
Health: | |||||||||||||||||||||||
Insurance policy income | 397.8 | 403.5 | 1,196.3 | 1,213.7 | |||||||||||||||||||
Net investment income | 74.2 | 73.3 | 222.5 | 219.6 | |||||||||||||||||||
Total health revenues | 472.0 | 476.8 | 1,418.8 | 1,433.3 | |||||||||||||||||||
Life: | |||||||||||||||||||||||
Insurance policy income | 221.0 | 213.4 | 663.1 | 643.0 | |||||||||||||||||||
Net investment income | 36.3 | 35.4 | 108.7 | 106.1 | |||||||||||||||||||
Total life revenues | 257.3 | 248.8 | 771.8 | 749.1 | |||||||||||||||||||
Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances) | (54.6) | (34.9) | 26.3 | (199.2) | |||||||||||||||||||
Investment income not allocated to product lines | 86.2 | 59.6 | 234.3 | 187.4 | |||||||||||||||||||
Fee revenue and other income: | |||||||||||||||||||||||
Fee income | 27.9 | 30.6 | 108.6 | 102.0 | |||||||||||||||||||
Amounts netted in expenses not allocated to product lines | 32.1 | 1.8 | 35.2 | 28.9 | |||||||||||||||||||
Total segment revenues | $ | 959.1 | $ | 910.1 | $ | 2,999.5 | $ | 2,675.0 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Bankers Life: | |||||||||||||||
Insurance policy income: | |||||||||||||||
Annuities | $ | 3.7 | $ | 6.8 | $ | 15.5 | $ | 17.4 | |||||||
Health | 307.2 | 310.3 | 926.9 | 933.3 | |||||||||||
Life | 103.7 | 96.6 | 310.4 | 295.8 | |||||||||||
Net investment income (a) | 270.6 | 244.7 | 800.4 | 686.8 | |||||||||||
Fee revenue and other income (a) | 11.3 | 9.6 | 32.5 | 23.5 | |||||||||||
Total Bankers Life revenues | 696.5 | 668.0 | 2,085.7 | 1,956.8 | |||||||||||
Washington National: | |||||||||||||||
Insurance policy income: | |||||||||||||||
Annuities | .5 | 1.2 | 1.6 | 2.3 | |||||||||||
Health | 160.4 | 156.9 | 480.3 | 469.1 | |||||||||||
Life | 6.5 | 6.3 | 20.1 | 18.6 | |||||||||||
Net investment income (a) | 68.0 | 67.1 | 201.9 | 191.3 | |||||||||||
Fee revenue and other income (a) | .3 | .4 | .8 | 1.0 | |||||||||||
Total Washington National revenues | 235.7 | 231.9 | 704.7 | 682.3 | |||||||||||
Colonial Penn: | |||||||||||||||
Insurance policy income: | |||||||||||||||
Health | .5 | .6 | 1.6 | 2.0 | |||||||||||
Life | 72.6 | 70.3 | 217.5 | 208.5 | |||||||||||
Net investment income (a) | 11.0 | 11.1 | 33.1 | 33.0 | |||||||||||
Fee revenue and other income (a) | .3 | .2 | .9 | .8 | |||||||||||
Total Colonial Penn revenues | 84.4 | 82.2 | 253.1 | 244.3 | |||||||||||
Long-term care in run-off: | |||||||||||||||
Insurance policy income - health | 4.2 | — | 13.3 | — | |||||||||||
Net investment income (a) | 6.8 | — | 26.5 | — | |||||||||||
Total Long-term care in run-off revenues | 11.0 | — | 39.8 | — | |||||||||||
Corporate operations: | |||||||||||||||
Net investment income | 7.0 | 6.7 | 24.8 | 16.6 | |||||||||||
Fee and other income | 1.8 | 2.5 | 6.5 | 7.6 | |||||||||||
Total corporate revenues | 8.8 | 9.2 | 31.3 | 24.2 | |||||||||||
Total revenues | $ | 1,036.4 | $ | 991.3 | $ | 3,114.6 | $ | 2,907.6 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Annuity: | |||||||||||||||||||||||
Insurance policy benefits | $ | 9.8 | $ | 6.5 | $ | 29.1 | $ | 22.8 | |||||||||||||||
Interest credited | 53.4 | 44.8 | 152.1 | 128.7 | |||||||||||||||||||
Amortization and non-deferred commissions | 18.0 | 16.0 | 51.9 | 45.9 | |||||||||||||||||||
Total annuity expenses | 81.2 | 67.3 | 233.1 | 197.4 | |||||||||||||||||||
Health: | |||||||||||||||||||||||
Insurance policy benefits | 308.5 | 310.8 | 949.3 | 943.8 | |||||||||||||||||||
Amortization and non-deferred commissions | 40.3 | 42.7 | 121.6 | 125.5 | |||||||||||||||||||
Total health expenses | 348.8 | 353.5 | 1,070.9 | 1,069.3 | |||||||||||||||||||
Life: | |||||||||||||||||||||||
Insurance policy benefits | 140.7 | 138.7 | 430.7 | 419.5 | |||||||||||||||||||
Interest credited | 12.1 | 12.6 | 36.4 | 36.3 | |||||||||||||||||||
Amortization, non-deferred commissions and advertising expense | 44.7 | 41.8 | 139.6 | 131.4 | |||||||||||||||||||
Total life expenses | 197.5 | 193.1 | 606.7 | 587.2 | |||||||||||||||||||
Allocated expenses | 153.2 | 150.5 | 460.2 | 447.5 | |||||||||||||||||||
Expenses not allocated to product lines | 24.6 | 17.9 | 67.1 | 56.9 | |||||||||||||||||||
Market value changes of options credited to fixed indexed annuity and life policyholders | (54.6) | (34.9) | 26.3 | (199.2) | |||||||||||||||||||
Amounts netted in investment income not allocated to product lines: | |||||||||||||||||||||||
Interest expense | 45.1 | 25.9 | 122.3 | 64.3 | |||||||||||||||||||
Interest credited | 7.2 | 7.2 | 21.6 | 21.3 | |||||||||||||||||||
Impact of annual option forfeitures related to fixed indexed annuity surrenders | (2.5) | 1.1 | (3.9) | — | |||||||||||||||||||
Amortization | .4 | .3 | 1.2 | 1.1 | |||||||||||||||||||
Other expenses | (2.4) | (2.0) | 11.2 | (18.0) | |||||||||||||||||||
Expenses netted in fee revenue: | |||||||||||||||||||||||
Commissions and other operating expenses | 30.8 | 29.2 | 95.4 | 87.5 | |||||||||||||||||||
Total segment expenses | 829.3 | 809.1 | 2,712.1 | 2,315.3 | |||||||||||||||||||
Pre-tax measure of profitability: | |||||||||||||||||||||||
Annuity margin | 57.0 | 60.1 | 171.4 | 176.1 | |||||||||||||||||||
Health margin | 123.2 | 123.3 | 347.9 | 364.0 | |||||||||||||||||||
Life margin | 59.8 | 55.7 | 165.1 | 161.9 | |||||||||||||||||||
Total insurance product margin | 240.0 | 239.1 | 684.4 | 702.0 | |||||||||||||||||||
Allocated expenses | (153.2) | (150.5) | (460.2) | (447.5) | |||||||||||||||||||
Income from insurance products | 86.8 | 88.6 | 224.2 | 254.5 | |||||||||||||||||||
Fee income | (2.9) | 1.4 | 13.2 | 14.5 | |||||||||||||||||||
Investment income not allocated to product lines | 38.4 | 27.1 | 81.9 | 118.7 | |||||||||||||||||||
Expenses not allocated to product lines | 7.5 | (16.1) | (31.9) | (28.0) | |||||||||||||||||||
Operating earnings before taxes | 129.8 | 101.0 | 287.4 | 359.7 | |||||||||||||||||||
Income tax expense on operating income | 28.5 | 23.1 | 65.2 | 82.2 | |||||||||||||||||||
Net operating income | $ | 101.3 | $ | 77.9 | $ | 222.2 | $ | 277.5 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Total segment revenues | $ | 959.1 | $ | 910.1 | $ | 2,999.5 | $ | 2,675.0 | |||||||||||||||
Total investment losses | (29.3) | (17.7) | (79.2) | (99.2) | |||||||||||||||||||
Revenues related to earnings attributable to VIEs | 17.7 | 12.9 | 56.0 | 27.4 | |||||||||||||||||||
Consolidated revenues | 947.5 | 905.3 | 2,976.3 | 2,603.2 | |||||||||||||||||||
Total segment expenses | 829.3 | 809.1 | 2,712.1 | 2,315.3 | |||||||||||||||||||
Insurance policy benefits - changes in fair value of embedded derivative liabilities and market risk benefits | (109.4) | (130.6) | (94.7) | (456.6) | |||||||||||||||||||
Expenses attributable to VIEs | 17.8 | 11.9 | 54.0 | 26.2 | |||||||||||||||||||
Fair value changes related to agent deferred compensation plan | (6.8) | (12.0) | (6.8) | (48.7) | |||||||||||||||||||
Other expenses | 1.0 | (1.0) | 1.0 | (1.0) | |||||||||||||||||||
Consolidated expenses | 731.9 | 677.4 | 2,665.6 | 1,835.2 | |||||||||||||||||||
Income before tax | 215.6 | 227.9 | 310.7 | 768.0 | |||||||||||||||||||
Income tax expense on period income | 48.3 | 52.0 | 70.5 | 175.4 | |||||||||||||||||||
Net income | 167.3 | $ | 175.9 | $ | 240.2 | $ | 592.6 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Expenses: | |||||||||||||||
Bankers Life: | |||||||||||||||
Insurance policy benefits | $ | 437.2 | $ | 427.1 | $ | 1,307.7 | $ | 1,240.9 | |||||||
Amortization | 38.7 | 43.8 | 126.3 | 135.3 | |||||||||||
Interest expense on investment borrowings | 5.3 | 3.5 | 14.3 | 9.4 | |||||||||||
Other operating costs and expenses | 108.4 | 105.5 | 328.2 | 312.2 | |||||||||||
Total Bankers Life expenses | 589.6 | 579.9 | 1,776.5 | 1,697.8 | |||||||||||
Washington National: | |||||||||||||||
Insurance policy benefits | 144.7 | 144.5 | 436.7 | 422.0 | |||||||||||
Amortization | 14.3 | 14.3 | 43.9 | 44.5 | |||||||||||
Interest expense on investment borrowings | 1.7 | .9 | 4.5 | 2.5 | |||||||||||
Other operating costs and expenses | 47.5 | 47.0 | 145.0 | 140.3 | |||||||||||
Total Washington National expenses | 208.2 | 206.7 | 630.1 | 609.3 | |||||||||||
Colonial Penn: | |||||||||||||||
Insurance policy benefits | 47.7 | 50.3 | 150.8 | 151.3 | |||||||||||
Amortization | 3.9 | 3.7 | 11.9 | 11.3 | |||||||||||
Interest expense on investment borrowings | .3 | .1 | .7 | .4 | |||||||||||
Other operating costs and expenses | 23.5 | 27.2 | 73.0 | 84.2 | |||||||||||
Total Colonial Penn expenses | 75.4 | 81.3 | 236.4 | 247.2 | |||||||||||
Long-term care in run-off: | |||||||||||||||
Insurance policy benefits | 11.4 | — | 36.6 | — | |||||||||||
Other operating costs and expenses | .6 | — | 2.1 | — | |||||||||||
Total Long-term care in run-off expenses | 12.0 | — | 38.7 | — | |||||||||||
Corporate operations: | |||||||||||||||
Interest expense on corporate debt | 11.7 | 11.5 | 34.8 | 34.3 | |||||||||||
Other operating costs and expenses | 23.7 | 13.6 | 68.3 | 43.7 | |||||||||||
Total corporate expenses | 35.4 | 25.1 | 103.1 | 78.0 | |||||||||||
Total expenses | 920.6 | 893.0 | 2,784.8 | 2,632.3 | |||||||||||
Pre-tax operating earnings by segment: | |||||||||||||||
Bankers Life | 106.9 | 88.1 | 309.2 | 259.0 | |||||||||||
Washington National | 27.5 | 25.2 | 74.6 | 73.0 | |||||||||||
Colonial Penn | 9.0 | .9 | 16.7 | (2.9 | ) | ||||||||||
Long-term care in run-off | (1.0 | ) | — | 1.1 | — | ||||||||||
Corporate operations | (26.6 | ) | (15.9 | ) | (71.8 | ) | (53.8 | ) | |||||||
Pre-tax operating earnings | $ | 115.8 | $ | 98.3 | $ | 329.8 | $ | 275.3 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total segment revenues | $ | 1,036.4 | $ | 991.3 | $ | 3,114.6 | $ | 2,907.6 | |||||||
Net realized investment gains | 29.2 | 11.6 | 52.3 | 23.3 | |||||||||||
Revenues related to VIEs | 13.7 | 13.0 | 40.2 | 39.3 | |||||||||||
Fee revenue related to transition and support services agreements | — | — | — | 10.0 | |||||||||||
Consolidated revenues | 1,079.3 | 1,015.9 | 3,207.1 | 2,980.2 | |||||||||||
Total segment expenses | 920.6 | 893.0 | 2,784.8 | 2,632.3 | |||||||||||
Insurance policy benefits - fair value changes in embedded derivative liabilities | (2.9 | ) | (12.1 | ) | 9.8 | 47.0 | |||||||||
Amortization related to fair value changes in embedded derivative liabilities | .6 | 2.7 | (1.8 | ) | (10.4 | ) | |||||||||
Amortization related to net realized investment gains | .7 | .2 | 1.0 | .9 | |||||||||||
Expenses related to VIEs | 17.0 | 13.7 | 44.8 | 40.5 | |||||||||||
Fair value changes and amendment related to agent deferred compensation plan | 13.4 | (6.3 | ) | 13.4 | 12.0 | ||||||||||
Loss on reinsurance transaction | — | 75.4 | — | 75.4 | |||||||||||
Expenses related to transition and support services agreements | — | — | — | 10.0 | |||||||||||
Consolidated expenses | 949.4 | 966.6 | 2,852.0 | 2,807.7 | |||||||||||
Income before tax | 129.9 | 49.3 | 355.1 | 172.5 | |||||||||||
Income tax expense (benefit): | |||||||||||||||
Tax expense on period income | 44.1 | 16.9 | 123.6 | 61.7 | |||||||||||
Valuation allowance for deferred tax assets and other tax items | (15.0 | ) | 13.8 | (15.0 | ) | (13.2 | ) | ||||||||
Net income | $ | 100.8 | $ | 18.6 | $ | 246.5 | $ | 124.0 |
Fair value | ||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
Assets: | ||||||||||||||
Other invested assets: | ||||||||||||||
Fixed indexed call options | $ | 150.0 | $ | 56.7 | ||||||||||
Reinsurance receivables | (20.3) | (17.8) | ||||||||||||
Total assets | $ | 129.7 | $ | 38.9 | ||||||||||
Liabilities: | ||||||||||||||
Embedded derivatives related to fixed indexed annuities at fair value: | ||||||||||||||
Policyholder account balances | $ | 1,676.1 | $ | 1,788.4 | ||||||||||
Future policy benefits | (462.7) | (491.4) | ||||||||||||
Total liabilities | $ | 1,213.4 | $ | 1,297.0 |
Fair value | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
Assets: | ||||||||
Other invested assets: | ||||||||
Fixed index call options | $ | 142.2 | $ | 111.9 | ||||
Reinsurance receivables | (1.8 | ) | (4.2 | ) | ||||
Total assets | $ | 140.4 | $ | 107.7 | ||||
Liabilities: | ||||||||
Future policy benefits: | ||||||||
Fixed index products | $ | 1,249.3 | $ | 1,092.3 | ||||
Total liabilities | $ | 1,249.3 | $ | 1,092.3 |
Three months ended | Nine months ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net investment income (loss) from policyholder and other special-purpose portfolios: | ||||||||||||||||||||||||||
Fixed indexed call options | $ | (55.0) | $ | (34.7) | $ | 24.9 | $ | (165.7) | ||||||||||||||||||
Total investment gains (losses): | ||||||||||||||||||||||||||
Embedded derivative related to modified coinsurance agreement | (2.2) | (4.4) | (2.5) | (50.8) | ||||||||||||||||||||||
Total revenues from derivative instruments, not designated as hedges | (57.2) | (39.1) | 22.4 | (216.5) | ||||||||||||||||||||||
Insurance policy benefits: | ||||||||||||||||||||||||||
Embedded derivatives related to fixed indexed annuities | (125.8) | (129.1) | (37.7) | (525.5) | ||||||||||||||||||||||
Net pre-tax impact | $ | 68.6 | $ | 90.0 | $ | 60.1 | $ | 309.0 |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net investment income from policyholder and other special-purpose portfolios: | ||||||||||||||||
Fixed index call options | $ | 30.6 | $ | 17.0 | $ | 95.4 | $ | 10.9 | ||||||||
Net realized gains (losses): | ||||||||||||||||
Interest rate futures | — | — | — | (1.1 | ) | |||||||||||
Embedded derivative related to modified coinsurance agreement | .3 | .1 | 2.4 | 6.7 | ||||||||||||
Total | .3 | .1 | 2.4 | 5.6 | ||||||||||||
Insurance policy benefits: | ||||||||||||||||
Embedded derivative related to fixed index annuities | — | 18.3 | — | (33.3 | ) | |||||||||||
Total | $ | 30.9 | $ | 35.4 | $ | 97.8 | $ | (16.8 | ) |
Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||||||||||||||||||
Gross amounts recognized | Gross amounts offset in the balance sheet | Net amounts of assets presented in the balance sheet | Non-cash collateral | Cash collateral received | Net amount | ||||||||||||||||||||||||||||||||||||
September 30, 2023: | |||||||||||||||||||||||||||||||||||||||||
Fixed indexed call options | $ | 150.0 | $ | — | $ | 150.0 | $ | 28.5 | $ | — | $ | 121.5 | |||||||||||||||||||||||||||||
December 31, 2022: | |||||||||||||||||||||||||||||||||||||||||
Fixed indexed call options | 56.7 | — | 56.7 | — | — | 56.7 |
Gross amounts not offset in the balance sheet | |||||||||||||||||||||||||
Gross amounts recognized | Gross amounts offset in the balance sheet | Net amounts of assets presented in the balance sheet | Financial instruments | Cash collateral received | Net amount | ||||||||||||||||||||
September 30, 2017: | |||||||||||||||||||||||||
Fixed index call options | $ | 142.2 | $ | — | $ | 142.2 | $ | — | $ | — | $ | 142.2 | |||||||||||||
December 31, 2016: | |||||||||||||||||||||||||
Fixed index call options | 111.9 | — | 111.9 | — | — | 111.9 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current tax expense | $ | 6.3 | $ | 14.9 | $ | 40.0 | $ | 19.9 | |||||||||||||||
Deferred tax expense | 42.0 | 37.1 | 30.5 | 155.5 | |||||||||||||||||||
Total income tax expense | $ | 48.3 | $ | 52.0 | $ | 70.5 | $ | 175.4 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Current tax expense | $ | 25.9 | $ | 46.8 | $ | 68.5 | $ | 51.6 | |||||||
Deferred tax expense (benefit) | 18.2 | (29.9 | ) | 55.1 | 10.1 | ||||||||||
Valuation allowance applicable to current year income | (2.2 | ) | (10.5 | ) | (2.2 | ) | (10.5 | ) | |||||||
Income tax expense calculated based on estimated annual effective tax rate | 41.9 | 6.4 | 121.4 | 51.2 | |||||||||||
Income tax expense on discrete items: | |||||||||||||||
Change in valuation allowance | (12.8 | ) | 16.0 | (12.8 | ) | (11.0 | ) | ||||||||
Other items | — | 8.3 | — | 8.3 | |||||||||||
Total income tax expense | $ | 29.1 | $ | 30.7 | $ | 108.6 | $ | 48.5 |
Nine months ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
U.S. statutory corporate rate | 21.0 | % | 21.0 | % | |||||||
Non-taxable income and nondeductible benefits, net | (.4) | (.1) | |||||||||
State taxes | 2.1 | 1.9 | |||||||||
Effective tax rate | 22.7 | % | 22.8 | % |
Nine months ended | |||||
September 30, | |||||
2017 | 2016 | ||||
U.S. statutory corporate rate | 35.0 | % | 35.0 | % | |
Valuation allowance | (.6 | ) | (6.1 | ) | |
Non-taxable income and nondeductible benefits, net | (1.5 | ) | (1.0 | ) | |
State taxes | 1.3 | 1.8 | |||
Estimated annual effective tax rate | 34.2 | % | 29.7 | % |
September 30, 2023 | December 31, 2022 | ||||||||||
Deferred tax assets: | |||||||||||
Net federal operating loss carryforwards | $ | 100.1 | $ | 166.0 | |||||||
Net state operating loss carryforwards | 2.5 | 2.5 | |||||||||
Insurance liabilities | 312.8 | 298.5 | |||||||||
Indirect costs allocable to self-constructed real estate assets | 244.5 | 214.8 | |||||||||
Accumulated other comprehensive loss | 552.6 | 552.4 | |||||||||
Other | 2.9 | 7.3 | |||||||||
Gross deferred tax assets | 1,215.4 | 1,241.5 | |||||||||
Deferred tax liabilities: | |||||||||||
Investments | (30.8) | (37.2) | |||||||||
Present value of future profits and deferred acquisition costs | (158.6) | (148.9) | |||||||||
Gross deferred tax liabilities | (189.4) | (186.1) | |||||||||
Net deferred tax assets | 1,026.0 | 1,055.4 | |||||||||
Current income taxes prepaid | 13.8 | 8.0 | |||||||||
Income tax assets, net | $ | 1,039.8 | $ | 1,063.4 |
September 30, 2017 | December 31, 2016 | ||||||
Deferred tax assets: | |||||||
Net federal operating loss carryforwards | $ | 841.8 | $ | 882.9 | |||
Net state operating loss carryforwards | 12.2 | 12.3 | |||||
Investments | 13.7 | 17.8 | |||||
Insurance liabilities | 678.9 | 668.4 | |||||
Other | 60.1 | 66.3 | |||||
Gross deferred tax assets | 1,606.7 | 1,647.7 | |||||
Deferred tax liabilities: | |||||||
Present value of future profits and deferred acquisition costs | (275.0 | ) | (277.8 | ) | |||
Accumulated other comprehensive income | (516.9 | ) | (344.1 | ) | |||
Gross deferred tax liabilities | (791.9 | ) | (621.9 | ) | |||
Net deferred tax assets before valuation allowance | 814.8 | 1,025.8 | |||||
Valuation allowance | (240.9 | ) | (240.2 | ) | |||
Net deferred tax assets | 573.9 | 785.6 | |||||
Current income taxes prepaid (accrued) | (6.5 | ) | 4.1 | ||||
Income tax assets, net | $ | 567.4 | $ | 789.7 |
Net operating loss | ||||||||
Year of expiration | carryforwards | |||||||
2026 | $ | 125.1 | ||||||
2027 | 10.8 | |||||||
2028 | 80.3 | |||||||
2029 | 213.2 | |||||||
2030 | .3 | |||||||
2031 | .2 | |||||||
2032 | 44.4 | |||||||
2033 | .6 | |||||||
2034 | .9 | |||||||
2035 | .8 | |||||||
Total federal non-life NOLs | $ | 476.6 | ||||||
Net operating loss | ||||
Year of expiration | carryforwards | |||
2023 | $ | 1,818.5 | ||
2025 | 85.2 | |||
2026 | 149.9 | |||
2027 | 10.8 | |||
2028 | 80.3 | |||
2029 | 213.2 | |||
2030 | .3 | |||
2031 | .2 | |||
2032 | 44.4 | |||
2033 | .6 | |||
2034 | .9 | |||
2035 | .8 | |||
Total federal NOLs | $ | 2,405.1 |
September 30, 2023 | December 31, 2022 | ||||||||||
5.250% Senior Notes due May 2025 | $ | 500.0 | $ | 500.0 | |||||||
5.250% Senior Notes due May 2029 | 500.0 | 500.0 | |||||||||
5.125% Subordinated Debentures due November 2060 | 150.0 | 150.0 | |||||||||
Revolving Credit Agreement (as defined below) | — | — | |||||||||
Unamortized debt issue costs | (9.9) | (11.2) | |||||||||
Direct corporate obligations | $ | 1,140.1 | $ | 1,138.8 |
September 30, 2017 | December 31, 2016 | ||||||
4.500% Senior Notes due May 2020 | $ | 325.0 | $ | 325.0 | |||
5.250% Senior Notes due May 2025 | 500.0 | 500.0 | |||||
Revolving Credit Agreement (as defined below) | 100.0 | 100.0 | |||||
Unamortized debt issue costs | (10.6 | ) | (12.1 | ) | |||
Direct corporate obligations | $ | 914.4 | $ | 912.9 |
Year ending September 30, | |||
2018 | $ | — | |
2019 | 100.0 | ||
2020 | 325.0 | ||
2021 | — | ||
2022 | — | ||
Thereafter | 500.0 | ||
$ | 925.0 |
Amount | Maturity | Interest rate at | ||||||||||||
borrowed | date | September 30, 2023 | ||||||||||||
$ | 100.0 | April 2024 | Variable rate – 5.628% | |||||||||||
22.0 | May 2024 | Variable rate – 5.743% | ||||||||||||
15.5 | July 2024 | Fixed rate – 1.990% | ||||||||||||
27.0 | August 2024 | Fixed rate – .640% | ||||||||||||
21.7 | May 2025 | Variable rate – 5.728% | ||||||||||||
18.2 | June 2025 | Fixed rate – 2.940% | ||||||||||||
12.5 | June 2025 | Variable rate – 5.880% | ||||||||||||
125.0 | September 2025 | Variable rate – 5.660% | ||||||||||||
100.0 | October 2025 | Variable rate – 5.878% | ||||||||||||
100.0 | October 2025 | Variable rate – 5.878% | ||||||||||||
57.7 | October 2025 | Variable rate – 5.843% | ||||||||||||
50.0 | November 2025 | Variable rate – 5.854% | ||||||||||||
12.5 | December 2025 | Variable rate – 5.896% | ||||||||||||
50.0 | January 2026 | Variable rate – 5.808% | ||||||||||||
50.0 | January 2026 | Variable rate – 5.857% | ||||||||||||
100.0 | January 2026 | Variable rate – 5.803% | ||||||||||||
15.0 | January 2026 | Variable rate – 5.977% | ||||||||||||
21.8 | May 2026 | Variable rate – 5.693% | ||||||||||||
50.0 | May 2026 | Variable rate – 5.580% | ||||||||||||
75.0 | December 2026 | Variable rate – 5.767% | ||||||||||||
75.0 | January 2027 | Variable rate – 5.663% | ||||||||||||
50.0 | January 2027 | Variable rate – 5.758% | ||||||||||||
50.0 | January 2027 | Variable rate – 5.813% | ||||||||||||
100.0 | February 2027 | Variable rate – 5.788% | ||||||||||||
50.0 | April 2027 | Variable rate – 5.674% | ||||||||||||
50.0 | May 2027 | Variable rate – 5.684% | ||||||||||||
100.0 | June 2027 | Variable rate – 5.680% | ||||||||||||
10.0 | June 2027 | Variable rate – 5.903% | ||||||||||||
50.0 | July 2027 | Variable rate – 6.044% | ||||||||||||
50.0 | July 2027 | Variable rate – 6.064% | ||||||||||||
100.0 | August 2027 | Variable rate – 6.048% | ||||||||||||
75.0 | January 2028 | Variable rate – 5.788% | ||||||||||||
50.0 | January 2028 | Variable rate – 5.798% | ||||||||||||
50.0 | January 2028 | Variable rate – 5.868% | ||||||||||||
34.5 | February 2028 | Variable rate – 5.908% | ||||||||||||
21.0 | February 2028 | Variable rate – 5.788% | ||||||||||||
100.0 | February 2028 | Variable rate – 5.808% | ||||||||||||
15.0 | July 2028 | Variable rate – 5.690% | ||||||||||||
35.0 | August 2028 | Variable rate – 5.700% | ||||||||||||
$ | 2,089.4 |
Amount | Maturity | Interest rate at | ||||
borrowed | date | September 30, 2017 | ||||
$ | 50.0 | February 2018 | Variable rate – 1.404% | |||
50.0 | August 2018 | Variable rate – 1.435% | ||||
50.0 | January 2019 | Variable rate – 1.724% | ||||
50.0 | February 2019 | Variable rate – 1.404% | ||||
100.0 | March 2019 | Variable rate – 1.714% | ||||
21.8 | July 2019 | Variable rate – 1.727% | ||||
15.0 | October 2019 | Variable rate – 1.830% | ||||
50.0 | May 2020 | Variable rate – 1.754% | ||||
21.8 | June 2020 | Fixed rate – 1.960% | ||||
25.0 | September 2020 | Variable rate – 1.953% | ||||
100.0 | September 2020 | Variable rate – 1.897% | ||||
50.0 | September 2020 | Variable rate – 1.894% | ||||
75.0 | September 2020 | Variable rate – 1.453% | ||||
100.0 | October 2020 | Variable rate – 1.409% | ||||
50.0 | December 2020 | Variable rate – 1.932% | ||||
100.0 | July 2021 | Variable rate – 1.854% | ||||
100.0 | July 2021 | Variable rate – 1.824% | ||||
28.2 | August 2021 | Fixed rate – 2.550% | ||||
57.7 | August 2021 | Variable rate - 1.842% | ||||
125.0 | August 2021 | Variable rate – 1.717% | ||||
50.0 | September 2021 | Variable rate – 1.857% | ||||
22.0 | May 2022 | Variable rate – 1.668% | ||||
100.0 | May 2022 | Variable rate – 1.666% | ||||
10.0 | June 2022 | Variable rate – 1.931% | ||||
50.0 | July 2022 | Variable rate – 1.675% | ||||
50.0 | July 2022 | Variable rate – 1.693% | ||||
50.0 | July 2022 | Variable rate – 1.694% | ||||
50.0 | August 2022 | Variable rate – 1.702% | ||||
24.9 | March 2023 | Fixed rate – 2.160% | ||||
20.5 | June 2025 | Fixed rate – 2.940% | ||||
$ | 1,646.9 |
January 1, 2017 | |||||||||||||||
Effect of Adoption of Authoritative Guidance | |||||||||||||||
Amounts prior to effect of adoption of authoritative guidance | Election to account for forfeitures as they occur | Recognition of excess tax benefits | As adjusted | ||||||||||||
Income tax assets | $ | 1,029.9 | $ | .3 | $ | 15.7 | $ | 1,045.9 | |||||||
Valuation allowance for deferred income tax assets | (240.2 | ) | — | (15.7 | ) | (255.9 | ) | ||||||||
Income tax assets, net | 789.7 | .3 | — | 790.0 | |||||||||||
Total assets | 31,975.2 | .3 | — | 31,975.5 | |||||||||||
Additional paid-in capital | 3,212.1 | .9 | — | 3,213.0 | |||||||||||
Retained earnings | 650.7 | (.6 | ) | — | 650.1 | ||||||||||
Total shareholders' equity | 4,486.9 | .3 | — | 4,487.2 | |||||||||||
Total liabilities and shareholders' equity | 31,975.2 | .3 | — | 31,975.5 |
Nine months ended | |||||||||||
September 30, 2016 | |||||||||||
Amounts prior to effect of adoption of authoritative guidance | Effect of adoption of authoritative guidance | As adjusted | |||||||||
Cash flows from operating activities: | |||||||||||
Other operating costs | $ | (555.4 | ) | $ | 3.3 | $ | (552.1 | ) | |||
Net cash flow from operating activities | 581.5 | 3.3 | 584.8 | ||||||||
Cash flows from financing activities: | |||||||||||
Payments to repurchase common stock | (206.7 | ) | (3.3 | ) | (210.0 | ) | |||||
Net cash used by financing activities | (34.2 | ) | (3.3 | ) | (37.5 | ) | |||||
Net increase in cash and cash equivalents | 273.7 | — | 273.7 |
Nine months ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 240.2 | $ | 592.6 | |||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Amortization and depreciation | 198.5 | 184.7 | |||||||||
Income taxes | 24.6 | 154.7 | |||||||||
Insurance liabilities | 169.5 | (475.0) | |||||||||
Accrual, amortization and fair value changes included in investment income | (54.9) | 132.0 | |||||||||
Deferral of policy acquisition costs | (277.6) | (248.5) | |||||||||
Net investment losses | 79.2 | 99.2 | |||||||||
Other (a) | 26.7 | (105.2) | |||||||||
Net cash from operating activities | $ | 406.2 | $ | 334.5 |
Nine months ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 246.5 | $ | 124.0 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Amortization and depreciation | 200.8 | 199.1 | |||||
Income taxes | 50.6 | 43.0 | |||||
Insurance liabilities | 321.5 | 310.2 | |||||
Accrual and amortization of investment income | (233.2 | ) | (93.4 | ) | |||
Deferral of policy acquisition costs | (183.4 | ) | (179.4 | ) | |||
Net realized investment gains | (52.3 | ) | (23.3 | ) | |||
Loss on reinsurance transaction | — | 75.4 | |||||
Cash and cash equivalents received upon recapture of reinsurance | — | 73.6 | |||||
Loss on extinguishment of borrowings related to a variable interest entity | 5.5 | — | |||||
Other | 77.7 | 55.6 | |||||
Net cash from operating activities | $ | 433.7 | $ | 584.8 |
Nine months ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Amounts related to employee benefit plans | $ | 18.4 | $ | 19.8 |
Nine months ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Stock options, restricted stock and performance units | $ | 17.8 | $ | 18.9 | |||
Market value of investments recaptured in connection with the termination of reinsurance agreements with BRe | — | 431.1 |
September 30, 2017 | September 30, 2023 | |||||||||||||||||||||||||||
VIEs | Eliminations | Net effect on consolidated balance sheet | VIEs | Eliminations | Net effect on consolidated balance sheet | |||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||
Investments held by variable interest entities | $ | 1,382.5 | $ | — | $ | 1,382.5 | Investments held by variable interest entities | $ | 858.1 | $ | — | $ | 858.1 | |||||||||||||||
Notes receivable of VIEs held by insurance subsidiaries | — | (159.9 | ) | (159.9 | ) | |||||||||||||||||||||||
Notes receivable of VIEs held by subsidiaries | Notes receivable of VIEs held by subsidiaries | — | (113.8) | (113.8) | ||||||||||||||||||||||||
Cash and cash equivalents held by variable interest entities | 105.9 | — | 105.9 | Cash and cash equivalents held by variable interest entities | 122.0 | — | 122.0 | |||||||||||||||||||||
Accrued investment income | 2.0 | (.1 | ) | 1.9 | Accrued investment income | 2.5 | — | 2.5 | ||||||||||||||||||||
Income tax assets, net | (.6 | ) | — | (.6 | ) | Income tax assets, net | 13.4 | — | 13.4 | |||||||||||||||||||
Other assets | 13.3 | (1.4 | ) | 11.9 | Other assets | .1 | (.8) | (.7) | ||||||||||||||||||||
Total assets | $ | 1,503.1 | $ | (161.4 | ) | $ | 1,341.7 | Total assets | $ | 996.1 | $ | (114.6) | $ | 881.5 | ||||||||||||||
Liabilities: | Liabilities: | |||||||||||||||||||||||||||
Other liabilities | $ | 145.9 | $ | (3.5 | ) | $ | 142.4 | Other liabilities | $ | 17.8 | $ | (4.2) | $ | 13.6 | ||||||||||||||
Borrowings related to variable interest entities | 1,198.2 | — | 1,198.2 | Borrowings related to variable interest entities | 918.5 | — | 918.5 | |||||||||||||||||||||
Notes payable of VIEs held by insurance subsidiaries | 172.9 | (172.9 | ) | — | ||||||||||||||||||||||||
Notes payable of VIEs held by subsidiaries | Notes payable of VIEs held by subsidiaries | 126.1 | (126.1) | — | ||||||||||||||||||||||||
Total liabilities | $ | 1,517.0 | $ | (176.4 | ) | $ | 1,340.6 | Total liabilities | $ | 1,062.4 | $ | (130.3) | $ | 932.1 |
December 31, 2022 | |||||||||||||||||
VIEs | Eliminations | Net effect on consolidated balance sheet | |||||||||||||||
Assets: | |||||||||||||||||
Investments held by variable interest entities | $ | 1,077.6 | $ | — | $ | 1,077.6 | |||||||||||
Notes receivable of VIEs held by subsidiaries | — | (113.8) | (113.8) | ||||||||||||||
Cash and cash equivalents held by variable interest entities | 69.2 | — | 69.2 | ||||||||||||||
Accrued investment income | 3.5 | — | 3.5 | ||||||||||||||
Income tax assets, net | 19.6 | — | 19.6 | ||||||||||||||
Other assets | 2.5 | (.8) | 1.7 | ||||||||||||||
Total assets | $ | 1,172.4 | $ | (114.6) | $ | 1,057.8 | |||||||||||
Liabilities: | |||||||||||||||||
Other liabilities | $ | 29.3 | $ | (2.4) | $ | 26.9 | |||||||||||
Borrowings related to variable interest entities | 1,104.6 | — | 1,104.6 | ||||||||||||||
Notes payable of VIEs held by subsidiaries | 126.1 | (126.1) | — | ||||||||||||||
Total liabilities | $ | 1,260.0 | $ | (128.5) | $ | 1,131.5 |
December 31, 2016 | |||||||||||
VIEs | Eliminations | Net effect on consolidated balance sheet | |||||||||
Assets: | |||||||||||
Investments held by variable interest entities | $ | 1,724.3 | $ | — | $ | 1,724.3 | |||||
Notes receivable of VIEs held by insurance subsidiaries | — | (204.2 | ) | (204.2 | ) | ||||||
Cash and cash equivalents held by variable interest entities | 189.3 | — | 189.3 | ||||||||
Accrued investment income | 3.0 | (.1 | ) | 2.9 | |||||||
Income tax assets, net | 6.4 | (1.3 | ) | 5.1 | |||||||
Other assets | 13.1 | (1.8 | ) | 11.3 | |||||||
Total assets | $ | 1,936.1 | $ | (207.4 | ) | $ | 1,728.7 | ||||
Liabilities: | |||||||||||
Other liabilities | $ | 81.8 | $ | (6.4 | ) | $ | 75.4 | ||||
Borrowings related to variable interest entities | 1,662.8 | — | 1,662.8 | ||||||||
Notes payable of VIEs held by insurance subsidiaries | 203.3 | (203.3 | ) | — | |||||||
Total liabilities | $ | 1,947.9 | $ | (209.7 | ) | $ | 1,738.2 |
Three months ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Allowance at the beginning of the period | $ | 4.5 | $ | 12.2 | ||||||||||
Additions for securities for which credit losses were not previously recorded | .1 | .9 | ||||||||||||
Additions for purchased securities with deteriorated credit | — | — | ||||||||||||
Additions (reductions) for securities where an allowance was previously recorded | (.6) | (5.7) | ||||||||||||
Reduction for securities sold during the period | (1.1) | (.9) | ||||||||||||
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded | — | — | ||||||||||||
Write-offs | — | — | ||||||||||||
Recoveries of previously written-off amount | — | — | ||||||||||||
Allowance at the end of the period | $ | 2.9 | $ | 6.5 |
Nine months ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Allowance at the beginning of the period | $ | 5.5 | $ | 3.7 | ||||||||||
Additions for securities for which credit losses were not previously recorded | .7 | 7.2 | ||||||||||||
Additions for purchased securities with deteriorated credit | — | — | ||||||||||||
Additions (reductions) for securities where an allowance was previously recorded | (.5) | (2.5) | ||||||||||||
Reduction for securities sold during the period | (2.8) | (1.9) | ||||||||||||
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded | — | — | ||||||||||||
Write-offs | — | — | ||||||||||||
Recoveries of previously written-off amount | — | — | ||||||||||||
Allowance at the end of the period | $ | 2.9 | $ | 6.5 |
Amortized cost | Estimated fair value | ||||||||||
(Dollars in millions) | |||||||||||
Due in one year or less | $ | 5.3 | $ | 4.6 | |||||||
Due after one year through five years | 770.2 | 750.4 | |||||||||
Due after five years through ten years | 105.1 | 103.1 | |||||||||
Total | $ | 880.6 | $ | 858.1 |
Amortized cost | Estimated fair value | ||||||
(Dollars in millions) | |||||||
Due in one year or less | $ | 5.9 | $ | 5.9 | |||
Due after one year through five years | 499.4 | 500.1 | |||||
Due after five years through ten years | 876.4 | 876.5 | |||||
Total | $ | 1,381.7 | $ | 1,382.5 |
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||
Corporate securities | $ | — | $ | 10,831.1 | $ | 127.8 | $ | 10,958.9 | |||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | — | 165.4 | — | 165.4 | |||||||||||||||||||
States and political subdivisions | — | 2,306.0 | — | 2,306.0 | |||||||||||||||||||
Foreign governments | — | 76.0 | — | 76.0 | |||||||||||||||||||
Asset-backed securities | — | 1,317.7 | 41.5 | 1,359.2 | |||||||||||||||||||
Agency residential mortgage-backed securities | — | 615.9 | — | 615.9 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | — | 1,522.6 | 2.6 | 1,525.2 | |||||||||||||||||||
Collateralized loan obligations | — | 1,059.5 | — | 1,059.5 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 2,226.8 | 12.3 | 2,239.1 | |||||||||||||||||||
Total fixed maturities, available for sale | — | 20,121.0 | 184.2 | 20,305.2 | |||||||||||||||||||
Equity securities - corporate securities | 22.9 | — | 72.6 | 95.5 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||
Asset-backed securities | — | 34.9 | — | 34.9 | |||||||||||||||||||
Agency residential mortgage-backed securities | — | 3.4 | — | 3.4 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | — | 59.9 | — | 59.9 | |||||||||||||||||||
Collateralized debt obligations | — | 8.9 | — | 8.9 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 114.1 | — | 114.1 | |||||||||||||||||||
Total trading securities | — | 221.2 | — | 221.2 | |||||||||||||||||||
Investments held by variable interest entities - corporate securities | — | 858.1 | — | 858.1 | |||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||
Derivatives | — | 150.0 | — | 150.0 | |||||||||||||||||||
Residual tranches | — | 13.7 | 12.1 | 25.8 | |||||||||||||||||||
Total other invested assets | — | 163.7 | 12.1 | 175.8 | |||||||||||||||||||
Market risk benefit asset | — | — | 89.3 | 89.3 | |||||||||||||||||||
Assets held in separate accounts | — | 2.9 | — | 2.9 | |||||||||||||||||||
Total assets carried at fair value by category | $ | 22.9 | $ | 21,366.9 | $ | 358.2 | $ | 21,748.0 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Market risk benefit liability | $ | — | $ | — | $ | 3.1 | $ | 3.1 | |||||||||||||||
Embedded derivatives associated with fixed indexed annuity products | — | — | 1,213.4 | 1,213.4 | |||||||||||||||||||
Total liabilities carried at fair value by category | $ | — | $ | — | $ | 1,216.5 | $ | 1,216.5 |
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||
Corporate securities | $ | — | $ | 14,394.3 | $ | 255.7 | $ | 14,650.0 | |||||||
United States Treasury securities and obligations of United States government corporations and agencies | — | 172.3 | — | 172.3 | |||||||||||
States and political subdivisions | — | 2,077.0 | — | 2,077.0 | |||||||||||
Debt securities issued by foreign governments | — | 57.1 | 4.0 | 61.1 | |||||||||||
Asset-backed securities | — | 2,726.2 | 59.9 | 2,786.1 | |||||||||||
Collateralized debt obligations | — | 237.9 | — | 237.9 | |||||||||||
Commercial mortgage-backed securities | — | 1,338.9 | — | 1,338.9 | |||||||||||
Mortgage pass-through securities | — | 2.2 | — | 2.2 | |||||||||||
Collateralized mortgage obligations | — | 804.4 | — | 804.4 | |||||||||||
Total fixed maturities, available for sale | — | 21,810.3 | 319.6 | 22,129.9 | |||||||||||
Equity securities - corporate securities | 477.8 | 213.9 | 21.6 | 713.3 | |||||||||||
Trading securities: | |||||||||||||||
Corporate securities | — | 21.1 | — | 21.1 | |||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | — | .5 | — | .5 | |||||||||||
Asset-backed securities | — | 101.2 | — | 101.2 | |||||||||||
Collateralized debt obligations | — | 2.7 | — | 2.7 | |||||||||||
Commercial mortgage-backed securities | — | 93.3 | — | 93.3 | |||||||||||
Collateralized mortgage obligations | — | 72.5 | — | 72.5 | |||||||||||
Equity securities | 3.1 | — | — | 3.1 | |||||||||||
Total trading securities | 3.1 | 291.3 | — | 294.4 | |||||||||||
Investments held by variable interest entities - corporate securities | — | 1,377.5 | 5.0 | 1,382.5 | |||||||||||
Other invested assets - derivatives | — | 142.2 | — | 142.2 | |||||||||||
Assets held in separate accounts | — | 4.8 | — | 4.8 | |||||||||||
Total assets carried at fair value by category | $ | 480.9 | $ | 23,840.0 | $ | 346.2 | $ | 24,667.1 | |||||||
Liabilities: | |||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | $ | — | $ | — | $ | 1,249.3 | $ | 1,249.3 |
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||
Corporate securities | $ | — | $ | 11,584.9 | $ | 127.8 | $ | 11,712.7 | |||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | — | 158.7 | — | 158.7 | |||||||||||||||||||
States and political subdivisions | — | 2,388.5 | — | 2,388.5 | |||||||||||||||||||
Foreign governments | — | 74.7 | — | 74.7 | |||||||||||||||||||
Asset-backed securities | — | 1,230.0 | 57.0 | 1,287.0 | |||||||||||||||||||
Agency residential mortgage-backed securities | — | 175.0 | — | 175.0 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | — | 1,492.3 | 56.2 | 1,548.5 | |||||||||||||||||||
Collateralized loan obligations | — | 782.5 | 3.4 | 785.9 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 2,207.9 | 14.5 | 2,222.4 | |||||||||||||||||||
Total fixed maturities, available for sale | — | 20,094.5 | 258.9 | 20,353.4 | |||||||||||||||||||
Equity securities - corporate securities | 59.6 | — | 75.7 | 135.3 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||
Asset-backed securities | — | 15.1 | — | 15.1 | |||||||||||||||||||
Agency residential mortgage-backed securities | — | .3 | — | .3 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | — | 60.2 | .5 | 60.7 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 131.8 | — | 131.8 | |||||||||||||||||||
Total trading securities | — | 207.4 | .5 | 207.9 | |||||||||||||||||||
Investments held by variable interest entities - corporate securities | — | 1,077.6 | — | 1,077.6 | |||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||
Derivatives | — | 56.7 | — | 56.7 | |||||||||||||||||||
Residual tranches | — | — | 18.3 | 18.3 | |||||||||||||||||||
Total other invested assets | — | 56.7 | 18.3 | 75.0 | |||||||||||||||||||
Market risk benefit asset | — | — | 65.3 | 65.3 | |||||||||||||||||||
Assets held in separate accounts | — | 2.7 | — | 2.7 | |||||||||||||||||||
Total assets carried at fair value by category | $ | 59.6 | $ | 21,438.9 | $ | 418.7 | $ | 21,917.2 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Market risk benefit liability | $ | — | $ | — | $ | 11.3 | $ | 11.3 | |||||||||||||||
Embedded derivatives associated with fixed indexed annuity products | — | — | 1,297.0 | 1,297.0 | |||||||||||||||||||
Total liabilities carried at fair value by category | $ | — | $ | — | $ | 1,308.3 | $ | 1,308.3 |
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||
Corporate securities | $ | — | $ | 13,252.4 | $ | 258.5 | $ | 13,510.9 | |||||||
United States Treasury securities and obligations of United States government corporations and agencies | — | 164.3 | — | 164.3 | |||||||||||
States and political subdivisions | — | 1,988.9 | — | 1,988.9 | |||||||||||
Debt securities issued by foreign governments | — | 33.0 | 3.9 | 36.9 | |||||||||||
Asset-backed securities | — | 2,649.9 | 60.4 | 2,710.3 | |||||||||||
Collateralized debt obligations | — | 225.3 | 5.4 | 230.7 | |||||||||||
Commercial mortgage-backed securities | — | 1,504.2 | 32.0 | 1,536.2 | |||||||||||
Mortgage pass-through securities | — | 2.5 | — | 2.5 | |||||||||||
Collateralized mortgage obligations | — | 915.5 | — | 915.5 | |||||||||||
Total fixed maturities, available for sale | — | 20,736.0 | 360.2 | 21,096.2 | |||||||||||
Equity securities - corporate securities | 359.9 | 199.1 | 25.2 | 584.2 | |||||||||||
Trading securities: | |||||||||||||||
Corporate securities | — | 19.0 | — | 19.0 | |||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | — | .5 | — | .5 | |||||||||||
Asset-backed securities | — | 94.3 | — | 94.3 | |||||||||||
Collateralized debt obligations | — | 2.4 | — | 2.4 | |||||||||||
Commercial mortgage-backed securities | — | 163.9 | — | 163.9 | |||||||||||
Collateralized mortgage obligations | — | 78.4 | — | 78.4 | |||||||||||
Equity securities | 4.9 | — | — | 4.9 | |||||||||||
Total trading securities | 4.9 | 358.5 | — | 363.4 | |||||||||||
Investments held by variable interest entities - corporate securities | — | 1,724.3 | — | 1,724.3 | |||||||||||
Other invested assets - derivatives | — | 111.9 | — | 111.9 | |||||||||||
Assets held in separate accounts | — | 4.7 | — | 4.7 | |||||||||||
Total assets carried at fair value by category | $ | 364.8 | $ | 23,134.5 | $ | 385.4 | $ | 23,884.7 | |||||||
Liabilities: | |||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | $ | — | $ | — | $ | 1,092.3 | $ | 1,092.3 |
September 30, 2023 | |||||||||||||||||||||||||||||
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total estimated fair value | Total carrying amount | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,790.2 | $ | 1,790.2 | $ | 1,971.3 | |||||||||||||||||||
Policy loans | — | — | 126.4 | 126.4 | 126.4 | ||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||
Company-owned life insurance | — | 200.5 | — | 200.5 | 200.5 | ||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||
Unrestricted | 460.8 | — | — | 460.8 | 460.8 | ||||||||||||||||||||||||
Held by variable interest entities | 122.0 | — | — | 122.0 | 122.0 | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Policyholder account balances | — | — | 15,481.8 | 15,481.8 | 15,481.8 | ||||||||||||||||||||||||
Future policy benefits | — | — | (462.7) | (462.7) | (462.7) | ||||||||||||||||||||||||
Investment borrowings | — | 2,090.3 | — | 2,090.3 | 2,089.4 | ||||||||||||||||||||||||
Borrowings related to variable interest entities | — | 929.0 | — | 929.0 | 918.5 | ||||||||||||||||||||||||
Notes payable – direct corporate obligations | — | 1,054.1 | — | 1,054.1 | 1,140.1 |
September 30, 2017 | |||||||||||||||||||
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total estimated fair value | Total carrying amount | |||||||||||||||
Assets: | |||||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,705.8 | $ | 1,705.8 | $ | 1,667.8 | |||||||||
Policy loans | — | — | 114.6 | 114.6 | 114.6 | ||||||||||||||
Other invested assets: | |||||||||||||||||||
Company-owned life insurance | — | 178.8 | — | 178.8 | 178.8 | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||
Unrestricted | 765.9 | — | — | 765.9 | 765.9 | ||||||||||||||
Held by variable interest entities | 105.9 | — | — | 105.9 | 105.9 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder account balances | — | — | 11,113.5 | 11,113.5 | 11,113.5 | ||||||||||||||
Investment borrowings | — | 1,650.1 | — | 1,650.1 | 1,646.9 | ||||||||||||||
Borrowings related to variable interest entities | — | 1,215.1 | — | 1,215.1 | 1,198.2 | ||||||||||||||
Notes payable – direct corporate obligations | — | 970.5 | — | 970.5 | 914.4 |
December 31, 2022 | |||||||||||||||||||||||||||||
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total estimated fair value | Total carrying amount | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,273.6 | $ | 1,273.6 | $ | 1,411.9 | |||||||||||||||||||
Policy loans | — | — | 121.6 | 121.6 | 121.6 | ||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||
Company-owned life insurance | — | 199.1 | — | 199.1 | 199.1 | ||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||
Unrestricted | 575.7 | — | — | 575.7 | 575.7 | ||||||||||||||||||||||||
Held by variable interest entities | 69.2 | — | — | 69.2 | 69.2 | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Policyholder account balances | — | — | 15,234.2 | 15,234.2 | 15,234.2 | ||||||||||||||||||||||||
Future policy benefits | — | — | (491.4) | (491.4) | (491.4) | ||||||||||||||||||||||||
Investment borrowings | — | 1,640.5 | — | 1,640.5 | 1,639.5 | ||||||||||||||||||||||||
Borrowings related to variable interest entities | — | 1,066.3 | — | 1,066.3 | 1,104.6 | ||||||||||||||||||||||||
Notes payable – direct corporate obligations | — | 1,077.0 | — | 1,077.0 | 1,138.8 |
December 31, 2016 | |||||||||||||||||||
Quoted prices in active markets for identical assets or liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total estimated fair value | Total carrying amount | |||||||||||||||
Assets: | |||||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,800.1 | $ | 1,800.1 | $ | 1,768.0 | |||||||||
Policy loans | — | — | 112.0 | 112.0 | 112.0 | ||||||||||||||
Other invested assets: | |||||||||||||||||||
Company-owned life insurance | — | 165.0 | — | 165.0 | 165.0 | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||
Unrestricted | 473.6 | 5.3 | — | 478.9 | 478.9 | ||||||||||||||
Held by variable interest entities | 189.3 | — | — | 189.3 | 189.3 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder account balances | — | — | 10,912.7 | 10,912.7 | 10,912.7 | ||||||||||||||
Investment borrowings | — | 1,650.0 | — | 1,650.0 | 1,647.4 | ||||||||||||||
Borrowings related to variable interest entities | — | 1,675.2 | — | 1,675.2 | 1,662.8 | ||||||||||||||
Notes payable – direct corporate obligations | — | 931.9 | — | 931.9 | 912.9 |
September 30, 2017 | September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance as of June 30, 2017 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2017 | Amount of total gains (losses) for the three months ended September 30, 2017 included in our net income relating to assets and liabilities still held as of the reporting date | Beginning balance as of June 30, 2023 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2023 | Amount of total gains (losses) for the three months ended September 30, 2023 included in our net income relating to assets still held as of the reporting date | Amount of total gains (losses) for the three months ended September 30, 2023 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, available for sale: | Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 263.3 | $ | (44.8 | ) | $ | 1.7 | $ | 1.3 | $ | 34.2 | $ | — | $ | 255.7 | $ | (3.2 | ) | Corporate securities | $ | 136.2 | $ | 6.3 | $ | (12.8) | $ | 2.9 | $ | 1.6 | $ | (6.4) | $ | 127.8 | $ | (12.8) | $ | 2.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities issued by foreign governments | 3.9 | — | — | .1 | — | — | 4.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 59.6 | (1.3 | ) | — | .7 | 7.1 | (6.2 | ) | 59.9 | — | Asset-backed securities | 39.8 | 1.1 | — | .6 | — | — | 41.5 | — | .6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations | 2.5 | (2.5 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | .2 | — | — | (.2 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | Non-agency residential mortgage-backed securities | 6.0 | — | — | .1 | 2.5 | (6.0) | 2.6 | — | .1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | Commercial mortgage-backed securities | 12.4 | — | — | (.1) | — | — | 12.3 | — | (.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, available for sale | 329.5 | (48.6 | ) | 1.7 | 1.9 | 41.3 | (6.2 | ) | 319.6 | (3.2 | ) | Total fixed maturities, available for sale | 194.4 | 7.4 | (12.8) | 3.5 | 4.1 | (12.4) | 184.2 | (12.8) | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities - corporate securities | 24.6 | (8.3 | ) | 6.4 | (1.1 | ) | — | — | 21.6 | (.5 | ) | Equity securities - corporate securities | 72.8 | — | (.2) | — | — | — | 72.6 | (.2) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments held by variable interest entities - corporate securities | — | — | — | — | 5.0 | — | 5.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (1,205.4 | ) | (56.3 | ) | 12.4 | — | — | — | (1,249.3 | ) | 12.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other invested assets - residual tranches | Other invested assets - residual tranches | 7.5 | 3.9 | — | — | .7 | — | 12.1 | — | — |
Purchases | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||
Corporate securities | $ | 6.3 | $ | — | $ | — | $ | — | $ | 6.3 | |||||||||||||||||||
Asset-backed securities | 1.3 | (.2) | — | — | 1.1 | ||||||||||||||||||||||||
Total fixed maturities, available for sale | 7.6 | (.2) | — | — | 7.4 | ||||||||||||||||||||||||
Other invested assets - residual tranches | 3.9 | — | — | — | 3.9 |
Purchases | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||
Corporate securities | $ | 15.3 | $ | (60.1 | ) | $ | — | $ | — | $ | (44.8 | ) | |||||||
Asset-backed securities | 9.9 | (11.2 | ) | — | — | (1.3 | ) | ||||||||||||
Collateralized debt obligations | — | (2.5 | ) | — | — | (2.5 | ) | ||||||||||||
Total fixed maturities, available for sale | 25.2 | (73.8 | ) | — | — | (48.6 | ) | ||||||||||||
Equity securities - corporate securities | — | (8.3 | ) | — | — | (8.3 | ) | ||||||||||||
Liabilities: | |||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (41.0 | ) | 1.8 | (31.4 | ) | 14.3 | (56.3 | ) |
September 30, 2017 | September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance as of December 31, 2016 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2017 | Amount of total gains (losses) for the nine months ended September 30, 2017 included in our net income relating to assets and liabilities still held as of the reporting date | Beginning balance as of December 31, 2022 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2023 | Amount of total gains (losses) for the nine months ended September 30, 2023 included in our net income relating to assets still held as of the reporting date | Amount of total gains (losses) for the nine months ended September 30, 2023 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, available for sale: | Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 258.5 | $ | (44.1 | ) | $ | 9.5 | $ | .6 | $ | 31.2 | $ | — | $ | 255.7 | $ | (6.5 | ) | Corporate securities | $ | 127.8 | $ | 9.1 | $ | (1.7) | $ | (6.9) | $ | 5.9 | $ | (6.4) | $ | 127.8 | $ | (1.7) | $ | (9.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities issued by foreign governments | 3.9 | — | — | .1 | — | — | 4.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 60.4 | 3.8 | — | 2.3 | 4.2 | (10.8 | ) | 59.9 | — | Asset-backed securities | 57.0 | (3.9) | (.2) | (1.0) | — | (10.4) | 41.5 | — | (1.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations | 5.4 | (2.5 | ) | — | — | — | (2.9 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | Non-agency residential mortgage-backed securities | 56.2 | (.1) | — | .2 | — | (53.7) | 2.6 | — | .2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | Collateralized loan obligations | 3.4 | — | — | — | — | (3.4) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 32.0 | — | — | — | — | (32.0 | ) | — | — | Commercial mortgage-backed securities | 14.5 | — | — | (2.2) | — | — | 12.3 | — | (2.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, available for sale | 360.2 | (42.8 | ) | 9.5 | 3.0 | 35.4 | (45.7 | ) | 319.6 | (6.5 | ) | Total fixed maturities, available for sale | 258.9 | 5.1 | (1.9) | (9.9) | 5.9 | (73.9) | 184.2 | (1.7) | (12.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities - corporate securities | 25.2 | (8.5 | ) | 6.3 | (1.4 | ) | — | — | 21.6 | (.5 | ) | Equity securities - corporate securities | 75.7 | (2.1) | (1.0) | — | — | — | 72.6 | (.5) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments held by variable interest entities - corporate securities | — | 5.0 | — | — | — | — | 5.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (1,092.3 | ) | (174.2 | ) | 17.2 | — | — | — | (1,249.3 | ) | 17.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading securities - non-agency residential mortgage-backed securities | Trading securities - non-agency residential mortgage-backed securities | .5 | — | — | — | — | (.5) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other invested assets - residual tranches | Other invested assets - residual tranches | 18.3 | 6.1 | .4 | — | — | (12.7) | 12.1 | .4 | — |
Purchases | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||
Corporate securities | $ | 10.5 | $ | (1.4) | $ | — | $ | — | $ | 9.1 | |||||||||||||||||||
Asset-backed securities | 3.8 | (7.7) | — | — | (3.9) | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | — | (.1) | — | — | (.1) | ||||||||||||||||||||||||
Total fixed maturities, available for sale | 14.3 | (9.2) | — | — | 5.1 | ||||||||||||||||||||||||
Equity securities - corporate securities | — | (2.1) | — | — | (2.1) | ||||||||||||||||||||||||
Other invested assets - residual tranches | 6.4 | (.3) | — | — | 6.1 |
Purchases | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||
Corporate securities | $ | 64.3 | $ | (108.4 | ) | $ | — | $ | — | $ | (44.1 | ) | |||||||
Asset-backed securities | 21.9 | (18.1 | ) | — | — | 3.8 | |||||||||||||
Collateralized debt obligations | — | (2.5 | ) | — | — | (2.5 | ) | ||||||||||||
Total fixed maturities, available for sale | 86.2 | (129.0 | ) | — | — | (42.8 | ) | ||||||||||||
Equity securities - corporate securities | — | (8.5 | ) | — | — | (8.5 | ) | ||||||||||||
Investments held by variable interest entities - corporate securities | 5.0 | — | — | — | 5.0 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (130.1 | ) | 5.3 | (95.7 | ) | 46.3 | (174.2 | ) |
September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance as of June 30, 2022 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2022 | Amount of total gains (losses) for the three months ended September 30, 2022 included in our net income relating to assets still held as of the reporting date | Amount of total gains (losses) for the three months ended September 30, 2022 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 124.0 | $ | 2.7 | $ | (.9) | $ | (13.4) | $ | 9.7 | $ | — | $ | 122.1 | $ | (.9) | $ | (14.2) | |||||||||||||||||||||||||||||||||||
Asset-backed securities | 29.7 | 18.3 | — | (3.2) | 4.1 | — | 48.9 | — | (3.2) | ||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 40.5 | (.1) | — | (2.5) | 13.6 | (22.4) | 29.1 | — | (2.5) | ||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 4.4 | — | — | — | 13.4 | (4.4) | 13.4 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 16.5 | — | — | (1.1) | 22.2 | — | 37.6 | — | (1.1) | ||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, available for sale | 215.1 | 20.9 | (.9) | (20.2) | 63.0 | (26.8) | 251.1 | (.9) | (21.0) | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities - corporate securities | 8.2 | — | (.5) | — | 67.1 | — | 74.8 | (.5) | — | ||||||||||||||||||||||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 3.4 | — | — | — | — | (3.4) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 6.0 | — | — | — | — | (6.0) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total trading securities | 9.4 | — | — | — | — | (9.4) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other invested assets - residual tranches | 2.6 | 1.6 | (.5) | — | .3 | — | 4.0 | (.5) | — |
September 30, 2016 | |||||||||||||||||||||||||||||||
Beginning balance as of June 30, 2016 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2016 | Amount of total gains (losses) for the three months ended September 30, 2016 included in our net income relating to assets and liabilities still held as of the reporting date | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||
Corporate securities | $ | 174.6 | $ | 118.8 | $ | — | $ | (4.9 | ) | $ | — | $ | — | $ | 288.5 | $ | — | ||||||||||||||
Debt securities issued by foreign governments | 4.1 | — | — | — | — | — | 4.1 | — | |||||||||||||||||||||||
Asset-backed securities | 39.1 | 5.7 | — | 2.1 | 24.6 | (15.0 | ) | 56.5 | — | ||||||||||||||||||||||
Collateralized debt obligations | — | 2.5 | — | — | — | — | 2.5 | — | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1.1 | 17.0 | — | (.1 | ) | 14.4 | — | 32.4 | — | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 12.0 | — | — | — | — | 12.0 | — | |||||||||||||||||||||||
Total fixed maturities, available for sale | 218.9 | 156.0 | — | (2.9 | ) | 39.0 | (15.0 | ) | 396.0 | — | |||||||||||||||||||||
Equity securities - corporate securities | 21.4 | 3.3 | — | (.8 | ) | — | — | 23.9 | — | ||||||||||||||||||||||
Trading securities - commercial mortgage-backed securities | — | — | — | (1.7 | ) | 10.0 | — | 8.3 | (1.7 | ) | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (1,127.0 | ) | (37.0 | ) | 18.3 | — | — | — | (1,145.7 | ) | 18.3 |
Purchases | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||
Corporate securities | $ | 9.3 | $ | (6.6) | $ | — | $ | — | $ | 2.7 | |||||||||||||||||||
Asset-backed securities | 19.0 | (.7) | — | — | 18.3 | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | — | (.1) | — | — | (.1) | ||||||||||||||||||||||||
Total fixed maturities, available for sale | 28.3 | (7.4) | — | — | 20.9 | ||||||||||||||||||||||||
Other invested assets - residual tranches | 1.6 | — | — | — | 1.6 |
Purchases | Received in reinsurance recapture | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||
Corporate securities | $ | 1.1 | $ | 118.6 | $ | (.9 | ) | $ | — | $ | — | $ | 118.8 | ||||||||||
Asset-backed securities | 7.0 | — | (1.3 | ) | — | — | 5.7 | ||||||||||||||||
Collateralized debt obligations | 2.5 | — | — | — | — | 2.5 | |||||||||||||||||
Commercial mortgage-backed securities | 17.0 | — | — | — | — | 17.0 | |||||||||||||||||
Collateralized mortgage obligations | — | 12.0 | — | — | — | 12.0 | |||||||||||||||||
Total fixed maturities, available for sale | 27.6 | 130.6 | (2.2 | ) | — | — | 156.0 | ||||||||||||||||
Equity securities - corporate securities | 1.1 | 2.2 | — | — | — | 3.3 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (38.5 | ) | — | 3.1 | (14.6 | ) | 13.0 | (37.0 | ) |
September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance as of December 31, 2021 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2022 | Amount of total gains (losses) for the nine months ended September 30, 2022 included in our net income relating to assets still held as of the reporting date | Amount of total gains (losses) for the nine months ended September 30, 2022 included in accumulated other comprehensive income (loss) relating to assets still held as of the reporting date | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 89.7 | $ | 13.0 | $ | (.1) | $ | (41.7) | $ | 68.6 | $ | (7.4) | $ | 122.1 | $ | .4 | $ | (43.1) | |||||||||||||||||||||||||||||||||||
Asset-backed securities | 26.6 | 26.0 | — | (6.4) | 2.7 | — | 48.9 | — | (6.4) | ||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | — | 6.0 | — | (10.3) | 33.4 | — | 29.1 | — | (10.3) | ||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 5.0 | — | — | (.4) | 13.8 | (5.0) | 13.4 | — | (.4) | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 19.0 | 28.0 | — | (9.4) | — | — | 37.6 | — | (9.5) | ||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, available for sale | 140.3 | 73.0 | (.1) | (68.2) | 118.5 | (12.4) | 251.1 | .4 | (69.7) | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities - corporate securities | 11.5 | 63.9 | (.6) | — | — | — | 74.8 | (.5) | — | ||||||||||||||||||||||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 3.5 | — | — | — | — | (3.5) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 12.9 | — | — | — | — | (12.9) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total trading securities | 16.4 | — | — | — | — | (16.4) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Investments held by variable interest entities - corporate securities | 2.2 | (2.1) | (.1) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other invested assets - residual tranches | — | 2.8 | — | (.6) | 1.8 | — | 4.0 | — | (.6) |
September 30, 2016 | |||||||||||||||||||||||||||||||
Beginning balance as of December 31, 2015 | Purchases, sales, issuances and settlements, net (b) | Total realized and unrealized gains (losses) included in net income | Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss) | Transfers into Level 3 (a) | Transfers out of Level 3 (a) | Ending balance as of September 30, 2016 | Amount of total gains (losses) for the nine months ended September 30, 2016 included in our net income relating to assets and liabilities still held as of the reporting date | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||
Corporate securities | $ | 170.4 | $ | 104.4 | $ | (7.0 | ) | $ | 7.4 | $ | 20.3 | $ | (7.0 | ) | $ | 288.5 | $ | (5.6 | ) | ||||||||||||
Debt securities issued by foreign governments | — | 4.0 | — | .1 | — | — | 4.1 | — | |||||||||||||||||||||||
Asset-backed securities | 35.9 | 1.7 | — | 4.0 | 28.6 | (13.7 | ) | 56.5 | — | ||||||||||||||||||||||
Collateralized debt obligations | — | 2.5 | — | — | — | — | 2.5 | — | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1.1 | 17.0 | — | .4 | 13.9 | — | 32.4 | — | |||||||||||||||||||||||
Mortgage pass-through securities | .1 | (.1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 12.0 | — | — | — | — | 12.0 | — | |||||||||||||||||||||||
Total fixed maturities, available for sale | 207.5 | 141.5 | (7.0 | ) | 11.9 | 62.8 | (20.7 | ) | 396.0 | (5.6 | ) | ||||||||||||||||||||
Equity securities - corporate securities | 32.0 | 5.5 | (12.8 | ) | (.8 | ) | — | — | 23.9 | (12.8 | ) | ||||||||||||||||||||
Trading securities - commercial mortgage-backed securities | 39.9 | — | — | (1.4 | ) | — | (30.2 | ) | 8.3 | (1.4 | ) | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (1,057.1 | ) | (55.3 | ) | (33.3 | ) | — | — | — | (1,145.7 | ) | (33.3 | ) |
(a)Transfers into Level 3 are the result of unobservable inputs utilized within valuation methodologies for assets that were previously valued using observable inputs. Transfers out of Level 3 are due to the use of observable inputs in valuation methodologies as well as the utilization of pricing service information for certain assets that the Company is able to validate. (b)Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities. The following summarizes such activity for the nine months ended |
Purchases | Received in reinsurance recapture | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||
Corporate securities | $ | 1.1 | $ | 118.6 | $ | (15.3 | ) | $ | — | $ | — | $ | 104.4 | ||||||||||
Debt securities issued by foreign governments | 4.0 | — | — | — | — | 4.0 | |||||||||||||||||
Asset-backed securities | 7.0 | — | (5.3 | ) | — | — | 1.7 | ||||||||||||||||
Collateralized debt obligations | 2.5 | — | — | — | — | 2.5 | |||||||||||||||||
Commercial mortgage-backed securities | 17.0 | — | — | — | — | 17.0 | |||||||||||||||||
Mortgage pass-through securities | — | — | (.1 | ) | — | — | (.1 | ) | |||||||||||||||
Collateralized mortgage obligations | — | 12.0 | — | — | — | 12.0 | |||||||||||||||||
Total fixed maturities, available for sale | 31.6 | 130.6 | (20.7 | ) | — | — | 141.5 | ||||||||||||||||
Equity securities - corporate securities | 3.3 | 2.2 | — | — | — | 5.5 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Future policy benefits - embedded derivatives associated with fixed index annuity products | (101.9 | ) | — | 19.2 | (17.5 | ) | 44.9 | (55.3 | ) |
Purchases | Sales | Issuances | Settlements | Purchases, sales, issuances and settlements, net | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||
Corporate securities | $ | 24.2 | $ | (11.2) | $ | — | $ | — | $ | 13.0 | |||||||||||||||||||
Asset-backed securities | 26.9 | (.9) | — | — | 26.0 | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 6.5 | (.5) | — | — | 6.0 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 28.0 | — | — | — | 28.0 | ||||||||||||||||||||||||
Total fixed maturities, available for sale | 85.6 | (12.6) | — | — | 73.0 | ||||||||||||||||||||||||
Equity securities - corporate securities | 67.0 | (3.1) | — | — | 63.9 | ||||||||||||||||||||||||
Investments held by variable interest entities - corporate securities | — | (2.1) | — | — | (2.1) | ||||||||||||||||||||||||
Other invested assets - residual tranches | 2.8 | — | — | — | 2.8 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Balance at beginning of the period | $ | 1,355.4 | $ | 1,371.0 | $ | 1,297.0 | $ | 1,724.1 | |||||||||||||||
Premiums less benefits | (16.2) | 12.0 | (45.9) | 55.3 | |||||||||||||||||||
Change in fair value, net | (125.8) | (129.1) | (37.7) | (525.5) | |||||||||||||||||||
Balance at end of the period | $ | 1,213.4 | $ | 1,253.9 | $ | 1,213.4 | $ | 1,253.9 |
Fair value at September 30, 2023 | Valuation techniques | Unobservable inputs | Range (weighted average) (a) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Corporate securities (b) | $ | 2.7 | Discounted cash flow analysis | Discount margins | 2.22% | ||||||||||||||||||
Corporate securities (c) | 2.5 | Recovery method | Percent of recovery expected | 0.00% - 25.00% (25.00%) | |||||||||||||||||||
Corporate securities (d) | 1.5 | Unadjusted purchase price | Not applicable | Not applicable | |||||||||||||||||||
Asset-backed securities (e) | 23.6 | Discounted cash flow analysis | Discount margins | 2.23% - 3.39% (2.98%) | |||||||||||||||||||
Equity securities (f) | 63.3 | Market comparables | EBITDA multiples | 10.7X | |||||||||||||||||||
Equity securities (g) | .1 | Recovery method | Percent of recovery expected | 0.00% - 100.00% (100.00%) | |||||||||||||||||||
Equity securities (h) | 9.2 | Unadjusted purchase price | Not applicable | Not applicable | |||||||||||||||||||
Other assets categorized as Level 3 (i) | 166.0 | Unadjusted third-party price source | Not applicable | Not applicable | |||||||||||||||||||
Market risk benefit asset (j) | 89.3 | Discounted cash flow analysis | Surrender rates | 1.28% - 11.05% (3.68%) | |||||||||||||||||||
Utilization rates | 5.92% - 47.62% (22.54%) | ||||||||||||||||||||||
Total | 358.2 | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Market risk benefit liability (j) | 3.1 | Discounted cash flow analysis | Surrender rates | 1.28% - 11.05% (3.68%) | |||||||||||||||||||
Utilization rates | 5.92% - 47.62% (22.54%) | ||||||||||||||||||||||
Embedded derivatives related to fixed indexed annuity products (k) | 1,213.4 | Discounted projected embedded derivatives | Projected portfolio yields | 4.30% - 4.63% (4.31%) | |||||||||||||||||||
Discount rates | 3.66% - 5.55% (5.20%) | ||||||||||||||||||||||
Surrender rates | 1.90% - 27.70% (9.20%) |
Fair value at September 30, 2017 | Valuation techniques | Unobservable inputs | Range (weighted average) | ||||||
Assets: | |||||||||
Corporate securities (a) | $ | 138.4 | Discounted cash flow analysis | Discount margins | 1.50% - 61.70% (9.10%) | ||||
Corporate securities (b) | 3.1 | Recovery method | Percent of recovery expected | 5% - 38% (17.76%) | |||||
Asset-backed securities (c) | 24.9 | Discounted cash flow analysis | Discount margins | 1.77% - 3.36% (2.54%) | |||||
Equity securities (d) | 21.6 | Market comparables | EBITDA multiples | 0.5X - 6.2X (5.9X) | |||||
Other assets categorized as Level 3 (e) | 158.2 | Unadjusted third-party price source | Not applicable | Not applicable | |||||
Total | 346.2 | ||||||||
Liabilities: | |||||||||
Future policy benefits (f) | 1,249.3 | Discounted projected embedded derivatives | Projected portfolio yields | 5.15% - 5.61% (5.59%) | |||||
Discount rates | 0.44% - 2.80% (1.94%) | ||||||||
Surrender rates | 0.94% - 46.48% (13.52%) |
Fair value at December 31, 2016 | Valuation techniques | Unobservable inputs | Range (weighted average) | ||||||
Assets: | |||||||||
Corporate securities (a) | $ | 148.5 | Discounted cash flow analysis | Discount margins | 1.35% - 27.71% (13.52%) | ||||
Corporate securities (b) | 14.8 | Recovery method | Percent of recovery expected | 5% - 69% (55%) | |||||
Asset-backed securities (c) | 24.0 | Discounted cash flow analysis | Discount margins | 2.06% - 3.64% (2.76%) | |||||
Equity securities (d) | 25.2 | Market comparables | EBITDA multiples | 0.4X - 6.2X (5.9X) | |||||
Other assets categorized as Level 3 (e) | 172.9 | Unadjusted third-party price source | Not applicable | Not applicable | |||||
Total | 385.4 | ||||||||
Liabilities: | |||||||||
Future policy benefits (f) | 1,092.3 | Discounted projected embedded derivatives | Projected portfolio yields | 5.15% - 5.61% (5.59%) | |||||
Discount rates | 0.18% - 3.06% (2.07%) | ||||||||
Surrender rates | 0.94% - 46.48% (13.52%) |
Valuation techniques | Unobservable inputs | Range (weighted average) (a) |
Assets: | ||||||||||||||||||||||||
Corporate securities (b) | $ | 2.9 | Discounted cash flow analysis | Discount margins | 2.23% - | |||||||||||||||||||
Corporate securities | 3.5 | Recovery method | Percent of recovery expected | 0.00% - 35.00% (35.00%) |
Corporate securities (d) | .5 | Unadjusted purchase price | Not applicable | Not applicable | |||||||||||||||||||
Asset-backed securities (e) | 21.8 | Discounted cash flow analysis | Discount margins | 2.50% - 3.86% (3.30%) | |||||||||||||||||||
Equity securities (f) | 63.9 | Market comparables | EBITDA multiples | 8.5X | |||||||||||||||||||
Equity securities (g) | .1 | Recovery method | Percent of recovery expected | 0.00% - 100.00% (100.00%) | |||||||||||||||||||
Equity securities (h) | 11.7 | Unadjusted purchase price | Not applicable | Not applicable | |||||||||||||||||||
Other assets categorized as Level 3 (i) | 249.0 | Unadjusted third-party price source | Not applicable | Not applicable | |||||||||||||||||||
Market risk benefit asset (j) | 65.3 | Discounted cash flow analysis | Surrender rates | 1.28% - |
Utilization rates | 6.78% - 63.16% (20.09%) | ||||||||||||||||||||||
Total | 418.7 | ||||||||||||||||||||||
Market risk benefit liability (j) | 11.3 | Discounted cash flow analysis | Surrender rates | 1.28% - | |||||||||||||||||||
Utilization rates | 6.78% - 63.16% (20.09%) | ||||||||||||||||||||||
Embedded derivatives related to fixed indexed annuity products (k) | 1,297.0 | Discounted projected embedded derivatives | Projected portfolio yields | 4.30% - 4.63% (4.31%) | |||||||||||||||||||
Discount rates | 3.77% - 5.48% (4.47%) | ||||||||||||||||||||||
Surrender rates | 1.90% - 27.70% (9.20%) |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Insurance product margin | |||||||||||||||||||||||
Annuity margin | $ | 57.0 | $ | 60.1 | $ | 171.4 | $ | 176.1 | |||||||||||||||
Health margin | 123.2 | 123.3 | 347.9 | 364.0 | |||||||||||||||||||
Life margin | 59.8 | 55.7 | 165.1 | 161.9 | |||||||||||||||||||
Total insurance product margin | 240.0 | 239.1 | 684.4 | 702.0 | |||||||||||||||||||
Allocated expenses | (153.2) | (150.5) | (460.2) | (447.5) | |||||||||||||||||||
Income from insurance products | 86.8 | 88.6 | 224.2 | 254.5 | |||||||||||||||||||
Fee income | (2.9) | 1.4 | 13.2 | 14.5 | |||||||||||||||||||
Investment income not allocated to product lines | 38.4 | 27.1 | 81.9 | 118.7 | |||||||||||||||||||
Expenses not allocated to product lines | 7.5 | (16.1) | (31.9) | (28.0) | |||||||||||||||||||
Operating earnings before taxes | 129.8 | 101.0 | 287.4 | 359.7 | |||||||||||||||||||
Income tax expense on operating income | (28.5) | (23.1) | (65.2) | (82.2) | |||||||||||||||||||
Net operating income (a) | 101.3 | 77.9 | 222.2 | 277.5 | |||||||||||||||||||
Net realized investment losses from sales and change in allowance for credit losses | (20.1) | (.7) | (64.1) | (35.0) | |||||||||||||||||||
Net change in market value of investments recognized in earnings | (9.2) | (17.0) | (15.1) | (64.2) | |||||||||||||||||||
Fair value changes related to agent deferred compensation plan | 6.8 | 12.0 | 6.8 | 48.7 | |||||||||||||||||||
Changes in fair value of embedded derivative liabilities and market risk benefits | 109.4 | 130.6 | 94.7 | 456.6 | |||||||||||||||||||
Other | (1.1) | 2.0 | 1.0 | 2.2 | |||||||||||||||||||
Net non-operating income before taxes | 85.8 | 126.9 | 23.3 | 408.3 | |||||||||||||||||||
Income tax expense on non-operating income | (19.8) | (28.9) | (5.3) | (93.2) | |||||||||||||||||||
Net non-operating income | 66.0 | 98.0 | 18.0 | 315.1 | |||||||||||||||||||
Net income | $ | 167.3 | $ | 175.9 | $ | 240.2 | $ | 592.6 | |||||||||||||||
Per diluted share | |||||||||||||||||||||||
Net operating income | $ | .88 | $ | .67 | $ | 1.92 | $ | 2.35 | |||||||||||||||
Net non-operating income | .58 | .85 | .16 | 2.67 | |||||||||||||||||||
Net income | $ | 1.46 | $ | 1.52 | $ | 2.08 | $ | 5.02 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Adjusted EBIT (a non-GAAP measure) (a): | |||||||||||||||
Bankers Life | $ | 106.9 | $ | 88.1 | $ | 309.2 | $ | 259.0 | |||||||
Washington National | 27.5 | 25.2 | 74.6 | 73.0 | |||||||||||
Colonial Penn | 9.0 | .9 | 16.7 | (2.9 | ) | ||||||||||
Long-term care in run-off | (1.0 | ) | — | 1.1 | — | ||||||||||
Adjusted EBIT from business segments | 142.4 | 114.2 | 401.6 | 329.1 | |||||||||||
Corporate operations, excluding corporate interest expense | (14.9 | ) | (4.4 | ) | (37.0 | ) | (19.5 | ) | |||||||
Adjusted EBIT | 127.5 | 109.8 | 364.6 | 309.6 | |||||||||||
Corporate interest expense | (11.7 | ) | (11.5 | ) | (34.8 | ) | (34.3 | ) | |||||||
Operating earnings before taxes | 115.8 | 98.3 | 329.8 | 275.3 | |||||||||||
Tax expense on operating income | 39.1 | 34.0 | 114.7 | 97.7 | |||||||||||
Net operating income (a) | 76.7 | 64.3 | 215.1 | 177.6 | |||||||||||
Net realized investment gains (losses) (net of related amortization) | 28.5 | 11.4 | 51.3 | 22.4 | |||||||||||
Fair value changes in embedded derivative liabilities (net of related amortization) | 2.3 | 9.4 | (8.0 | ) | (36.6 | ) | |||||||||
Fair value changes and amendment related to agent deferred compensation plan | (13.4 | ) | 6.3 | (13.4 | ) | (12.0 | ) | ||||||||
Loss on reinsurance transaction | — | (75.4 | ) | — | (75.4 | ) | |||||||||
Other | (3.3 | ) | (.7 | ) | (4.6 | ) | (1.2 | ) | |||||||
Non-operating income (loss) before taxes | 14.1 | (49.0 | ) | 25.3 | (102.8 | ) | |||||||||
Income tax expense (benefit): | |||||||||||||||
On non-operating income (loss) | 5.0 | (17.1 | ) | 8.9 | (36.0 | ) | |||||||||
Valuation allowance for deferred tax assets and other tax items | (15.0 | ) | 13.8 | (15.0 | ) | (13.2 | ) | ||||||||
Net non-operating income (loss) | 24.1 | (45.7 | ) | 31.4 | (53.6 | ) | |||||||||
Net income | $ | 100.8 | $ | 18.6 | $ | 246.5 | $ | 124.0 | |||||||
Per diluted share: | |||||||||||||||
Net operating income | $ | .45 | $ | .37 | $ | 1.25 | $ | .99 | |||||||
Net realized investment gains (losses) (net of related amortization and taxes) | .11 | .04 | .19 | .08 | |||||||||||
Fair value changes in embedded derivative liabilities (net of related amortization and taxes) | .01 | .04 | (.03 | ) | (.13 | ) | |||||||||
Fair value changes and amendment related to agent deferred compensation plan (net of taxes) | (.05 | ) | .02 | (.05 | ) | (.05 | ) | ||||||||
Loss on reinsurance transaction (net of taxes) | — | (.28 | ) | — | (.27 | ) | |||||||||
Valuation allowance for deferred tax assets and other tax items | .09 | (.08 | ) | .09 | .07 | ||||||||||
Other | (.02 | ) | — | (.02 | ) | — | |||||||||
Net income | $ | .59 | $ | .11 | $ | 1.43 | $ | .69 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Pre-tax operating earnings (a non-GAAP measure) (a): | |||||||||||||||
Bankers Life | $ | 106.9 | $ | 88.1 | $ | 309.2 | $ | 259.0 | |||||||
Washington National | 27.5 | 25.2 | 74.6 | 73.0 | |||||||||||
Colonial Penn | 9.0 | .9 | 16.7 | (2.9 | ) | ||||||||||
Long-term care in run-off | (1.0 | ) | — | 1.1 | — | ||||||||||
Corporate operations | (26.6 | ) | (15.9 | ) | (71.8 | ) | (53.8 | ) | |||||||
115.8 | 98.3 | 329.8 | 275.3 | ||||||||||||
Net realized investment gains (losses), net of related amortization: | |||||||||||||||
Bankers Life | 14.9 | .7 | 30.1 | (1.3 | ) | ||||||||||
Washington National | 6.5 | .1 | 12.6 | 26.9 | |||||||||||
Colonial Penn | 1.0 | .3 | .8 | (.2 | ) | ||||||||||
Long-term care in run-off | 6.7 | — | 7.8 | — | |||||||||||
Corporate operations | (.6 | ) | 10.3 | — | (3.0 | ) | |||||||||
28.5 | 11.4 | 51.3 | 22.4 | ||||||||||||
Fair value changes in embedded derivative liabilities, net of related amortization: | |||||||||||||||
Bankers Life | 2.3 | 9.3 | (8.0 | ) | (36.2 | ) | |||||||||
Washington National | — | .1 | — | (.4 | ) | ||||||||||
2.3 | 9.4 | (8.0 | ) | (36.6 | ) | ||||||||||
Earnings attributable to VIEs: | |||||||||||||||
Corporate operations | (3.3 | ) | (.7 | ) | (4.6 | ) | (1.2 | ) | |||||||
Fair value changes and amendment related to agent deferred compensation plan: | |||||||||||||||
Corporate operations | (13.4 | ) | 6.3 | (13.4 | ) | (12.0 | ) | ||||||||
Loss on reinsurance transaction: | |||||||||||||||
Corporate operations | — | (75.4 | ) | — | (75.4 | ) | |||||||||
Income (loss) before income taxes: | |||||||||||||||
Bankers Life | 124.1 | 98.1 | 331.3 | 221.5 | |||||||||||
Washington National | 34.0 | 25.4 | 87.2 | 99.5 | |||||||||||
Colonial Penn | 10.0 | 1.2 | 17.5 | (3.1 | ) | ||||||||||
Long-term care in run-off | 5.7 | — | 8.9 | — | |||||||||||
Corporate operations | (43.9 | ) | (75.4 | ) | (89.8 | ) | (145.4 | ) | |||||||
Income before income taxes | $ | 129.9 | $ | 49.3 | $ | 355.1 | $ | 172.5 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Insurance product margin | |||||||||||||||||||||||
Annuity: | |||||||||||||||||||||||
Insurance policy income | $ | 7.2 | $ | 6.3 | $ | 20.4 | $ | 17.1 | |||||||||||||||
Net investment income | 131.0 | 121.1 | 384.1 | 356.4 | |||||||||||||||||||
Insurance policy benefits | (9.8) | (6.5) | (29.1) | (22.8) | |||||||||||||||||||
Interest credited | (53.4) | (44.8) | (152.1) | (128.7) | |||||||||||||||||||
Amortization and non-deferred commissions (a) | (18.0) | (16.0) | (51.9) | (45.9) | |||||||||||||||||||
Annuity margin | 57.0 | 60.1 | 171.4 | 176.1 | |||||||||||||||||||
Health: | |||||||||||||||||||||||
Insurance policy income | 397.8 | 403.5 | 1,196.3 | 1,213.7 | |||||||||||||||||||
Net investment income | 74.2 | 73.3 | 222.5 | 219.6 | |||||||||||||||||||
Insurance policy benefits | (308.5) | (310.8) | (949.3) | (943.8) | |||||||||||||||||||
Amortization and non-deferred commissions (a) | (40.3) | (42.7) | (121.6) | (125.5) | |||||||||||||||||||
Health margin | 123.2 | 123.3 | 347.9 | 364.0 | |||||||||||||||||||
Life: | |||||||||||||||||||||||
Insurance policy income | 221.0 | 213.4 | 663.1 | 643.0 | |||||||||||||||||||
Net investment income | 36.3 | 35.4 | 108.7 | 106.1 | |||||||||||||||||||
Insurance policy benefits | (140.7) | (138.7) | (430.7) | (419.5) | |||||||||||||||||||
Interest credited | (12.1) | (12.6) | (36.4) | (36.3) | |||||||||||||||||||
Amortization and non-deferred commissions (a) | (22.1) | (19.7) | (62.8) | (57.4) | |||||||||||||||||||
Advertising expense | (22.6) | (22.1) | (76.8) | (74.0) | |||||||||||||||||||
Life margin | 59.8 | 55.7 | 165.1 | 161.9 | |||||||||||||||||||
Total insurance product margin | 240.0 | 239.1 | 684.4 | 702.0 | |||||||||||||||||||
Allocated expenses: | |||||||||||||||||||||||
Branch office expenses | (16.3) | (16.5) | (52.0) | (50.0) | |||||||||||||||||||
Other allocated expenses | (136.9) | (134.0) | (408.2) | (397.5) | |||||||||||||||||||
Income from insurance products | 86.8 | 88.6 | 224.2 | 254.5 | |||||||||||||||||||
Fee income | (2.9) | 1.4 | 13.2 | 14.5 | |||||||||||||||||||
Investment income not allocated to product lines | 38.4 | 27.1 | 81.9 | 118.7 | |||||||||||||||||||
Expenses not allocated to product lines | 7.5 | (16.1) | (31.9) | (28.0) | |||||||||||||||||||
Operating earnings before taxes | 129.8 | 101.0 | 287.4 | 359.7 | |||||||||||||||||||
Income tax expense on operating income | (28.5) | (23.1) | (65.2) | (82.2) | |||||||||||||||||||
Net operating income | $ | 101.3 | $ | 77.9 | $ | 222.2 | $ | 277.5 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Expenses allocated to product lines | $ | 153.2 | $ | 150.5 | $ | 460.2 | $ | 447.5 | |||||||||||||||||||||||||||
Expenses not allocated to product lines | (7.5) | 16.1 | 31.9 | 28.0 | |||||||||||||||||||||||||||||||
Net favorable impact from legal matters | 21.7 | — | 21.7 | — | |||||||||||||||||||||||||||||||
Experience refund related to a reinsurance agreement (a) | — | — | — | 22.5 | |||||||||||||||||||||||||||||||
Adjusted total | $ | 167.4 | $ | 166.6 | $ | 513.8 | $ | 498.0 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Fee revenue | $ | 27.9 | $ | 30.6 | $ | 108.6 | $ | 102.0 | |||||||||||||||
Operating costs and expenses | (30.8) | (29.2) | (95.4) | (87.5) | |||||||||||||||||||
Net fee income | $ | (2.9) | $ | 1.4 | $ | 13.2 | $ | 14.5 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Premium collections: | |||||||||||||||
Annuities | $ | 236.5 | $ | 245.1 | $ | 758.3 | $ | 685.1 | |||||||
Medicare supplement and other supplemental health | 291.5 | 305.4 | 906.4 | 922.4 | |||||||||||
Life | 113.7 | 115.4 | 345.4 | 347.3 | |||||||||||
Total collections | $ | 641.7 | $ | 665.9 | $ | 2,010.1 | $ | 1,954.8 | |||||||
Average liabilities for insurance products: | |||||||||||||||
Fixed index annuities | $ | 5,222.5 | $ | 4,597.1 | $ | 5,048.2 | $ | 4,461.9 | |||||||
Fixed interest annuities | 2,860.5 | 3,149.7 | 2,935.9 | 3,222.7 | |||||||||||
SPIAs and supplemental contracts: | |||||||||||||||
Mortality based | 159.2 | 172.7 | 162.1 | 177.1 | |||||||||||
Deposit based | 148.1 | 152.9 | 149.8 | 154.0 | |||||||||||
Health: | |||||||||||||||
Long-term care | 5,038.4 | 5,161.2 | 4,950.4 | 4,985.4 | |||||||||||
Medicare supplement | 329.8 | 333.0 | 336.7 | 335.9 | |||||||||||
Other health | 56.5 | 50.8 | 55.3 | 49.7 | |||||||||||
Life: | |||||||||||||||
Interest sensitive | 785.6 | 722.7 | 771.7 | 706.2 | |||||||||||
Non-interest sensitive | 1,099.1 | 1,027.9 | 1,080.8 | 1,009.1 | |||||||||||
Total average liabilities for insurance products, net of reinsurance ceded | $ | 15,699.7 | $ | 15,368.0 | $ | 15,490.9 | $ | 15,102.0 | |||||||
Revenues: | |||||||||||||||
Insurance policy income | $ | 414.6 | $ | 413.7 | $ | 1,252.8 | $ | 1,246.5 | |||||||
Net investment income: | |||||||||||||||
General account invested assets | 242.1 | 229.1 | 710.9 | 676.2 | |||||||||||
Fixed index products | 28.5 | 15.6 | 89.5 | 10.6 | |||||||||||
Fee revenue and other income | 11.3 | 9.6 | 32.5 | 23.5 | |||||||||||
Total revenues | 696.5 | 668.0 | 2,085.7 | 1,956.8 | |||||||||||
Expenses: | |||||||||||||||
Insurance policy benefits | 364.7 | 368.4 | 1,089.9 | 1,098.7 | |||||||||||
Amounts added to policyholder account balances: | |||||||||||||||
Cost of interest credited to policyholders | 26.3 | 27.7 | 79.3 | 83.3 | |||||||||||
Cost of options to fund index credits, net of forfeitures | 16.0 | 15.7 | 47.1 | 49.2 | |||||||||||
Market value changes credited to policyholders | 30.2 | 15.3 | 91.4 | 9.7 | |||||||||||
Amortization related to operations | 38.7 | 43.8 | 126.3 | 135.3 | |||||||||||
Interest expense on investment borrowings | 5.3 | 3.5 | 14.3 | 9.4 | |||||||||||
Other operating costs and expenses | 108.4 | 105.5 | 328.2 | 312.2 | |||||||||||
Total benefits and expenses | 589.6 | 579.9 | 1,776.5 | 1,697.8 | |||||||||||
Income before net realized investment gains (losses), net of related amortization, and fair value changes in embedded derivative liabilities, net of related amortization, and income taxes | 106.9 | 88.1 | 309.2 | 259.0 | |||||||||||
Net realized investment gains (losses) | 15.6 | .9 | 31.1 | (.7 | ) | ||||||||||
Amortization related to net realized investment gains (losses) | (.7 | ) | (.2 | ) | (1.0 | ) | (.6 | ) | |||||||
Net realized investment gains (losses), net of related amortization | 14.9 | .7 | 30.1 | (1.3 | ) | ||||||||||
Insurance policy benefits - fair value changes in embedded derivative liabilities | 2.8 | 11.6 | (9.8 | ) | (45.7 | ) | |||||||||
Amortization related to fair value changes in embedded derivative liabilities | (.5 | ) | (2.3 | ) | 1.8 | 9.5 | |||||||||
Fair value changes in embedded derivative liabilities, net of related amortization | 2.3 | 9.3 | (8.0 | ) | (36.2 | ) | |||||||||
Income before income taxes | $ | 124.1 | $ | 98.1 | $ | 331.3 | $ | 221.5 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Annuity margin: | |||||||||||||||||||||||
Fixed indexed annuities | |||||||||||||||||||||||
Insurance policy income | $ | 5.1 | $ | 3.6 | $ | 14.2 | $ | 10.3 | |||||||||||||||
Net investment income | 104.4 | 95.0 | 304.4 | 276.5 | |||||||||||||||||||
Insurance policy benefits | (4.3) | (2.0) | (12.6) | (9.7) | |||||||||||||||||||
Interest credited | (41.5) | (33.0) | (116.8) | (92.9) | |||||||||||||||||||
Amortization and non-deferred commissions | (16.5) | (14.7) | (47.9) | (42.1) | |||||||||||||||||||
Margin from fixed indexed annuities | $ | 47.2 | $ | 48.9 | $ | 141.3 | $ | 142.1 | |||||||||||||||
Average net insurance liabilities | $ | 9,381.0 | $ | 8,902.9 | $ | 9,280.2 | $ | 8,700.1 | |||||||||||||||
Margin/average net insurance liabilities | 2.01 | % | 2.20 | % | 2.03 | % | 2.18 | % | |||||||||||||||
Fixed interest annuities | |||||||||||||||||||||||
Insurance policy income | $ | .3 | $ | .2 | $ | .8 | $ | .6 | |||||||||||||||
Net investment income | 21.0 | 20.3 | 62.8 | 62.4 | |||||||||||||||||||
Insurance policy benefits | (.1) | .1 | (.2) | (.9) | |||||||||||||||||||
Interest credited | (11.4) | (11.2) | (33.6) | (34.0) | |||||||||||||||||||
Amortization and non-deferred commissions | (1.4) | (1.2) | (3.6) | (3.5) | |||||||||||||||||||
Margin from fixed interest annuities | $ | 8.4 | $ | 8.2 | $ | 26.2 | $ | 24.6 | |||||||||||||||
Average net insurance liabilities | $ | 1,603.0 | $ | 1,675.9 | $ | 1,615.7 | $ | 1,716.5 | |||||||||||||||
Margin/average net insurance liabilities | 2.10 | % | 1.96 | % | 2.16 | % | 1.91 | % | |||||||||||||||
Other annuities | |||||||||||||||||||||||
Insurance policy income | $ | 1.8 | $ | 2.5 | $ | 5.4 | $ | 6.2 | |||||||||||||||
Net investment income | 5.6 | 5.8 | 16.9 | 17.5 | |||||||||||||||||||
Insurance policy benefits | (5.4) | (4.6) | (16.3) | (12.2) | |||||||||||||||||||
Interest credited | (.5) | (.6) | (1.7) | (1.8) | |||||||||||||||||||
Amortization and non-deferred commissions | (.1) | (.1) | (.4) | (.3) | |||||||||||||||||||
Margin from other annuities | $ | 1.4 | $ | 3.0 | $ | 3.9 | $ | 9.4 | |||||||||||||||
Average net insurance liabilities | $ | 455.6 | $ | 478.8 | $ | 462.6 | $ | 484.4 | |||||||||||||||
Margin/average net insurance liabilities | 1.23 | % | 2.51 | % | 1.12 | % | 2.59 | % | |||||||||||||||
Total annuity margin | $ | 57.0 | $ | 60.1 | $ | 171.4 | $ | 176.1 | |||||||||||||||
Average net insurance liabilities | $ | 11,439.6 | $ | 11,057.6 | $ | 11,358.5 | $ | 10,901.0 | |||||||||||||||
Margin/average net insurance liabilities | 1.99 | % | 2.17 | % | 2.01 | % | 2.15 | % | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Health benefit ratios: | |||||||||||||||
All health lines: | |||||||||||||||
Insurance policy benefits | $ | 291.3 | $ | 301.2 | $ | 863.0 | $ | 896.2 | |||||||
Benefit ratio (a) | 94.8 | % | 97.0 | % | 93.1 | % | 96.0 | % | |||||||
Medicare supplement: | |||||||||||||||
Insurance policy benefits | $ | 140.0 | $ | 140.5 | $ | 414.1 | $ | 418.7 | |||||||
Benefit ratio (a) | 72.0 | % | 72.5 | % | 70.8 | % | 72.2 | % | |||||||
Long-term care: | |||||||||||||||
Insurance policy benefits | $ | 151.3 | $ | 160.7 | $ | 448.9 | $ | 477.5 | |||||||
Benefit ratio (a) | 134.2 | % | 137.7 | % | 131.2 | % | 135.1 | % | |||||||
Interest-adjusted benefit ratio (b) | 72.9 | % | 77.7 | % | 70.5 | % | 76.9 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Health margin: | |||||||||||||||||||||||
Supplemental health | |||||||||||||||||||||||
Insurance policy income | $ | 177.9 | $ | 173.5 | $ | 533.1 | $ | 519.0 | |||||||||||||||
Net investment income | 39.0 | 37.7 | 116.5 | 112.7 | |||||||||||||||||||
Insurance policy benefits | (128.0) | (125.8) | (385.1) | (383.2) | |||||||||||||||||||
Amortization and non-deferred commissions | (26.1) | (26.9) | (78.5) | (77.9) | |||||||||||||||||||
Margin from supplemental health | $ | 62.8 | $ | 58.5 | $ | 186.0 | $ | 170.6 | |||||||||||||||
Margin/insurance policy income | 35 | % | 34 | % | 35 | % | 33 | % | |||||||||||||||
Medicare supplement | |||||||||||||||||||||||
Insurance policy income | $ | 154.2 | $ | 163.6 | $ | 466.0 | $ | 495.5 | |||||||||||||||
Net investment income | 1.1 | 1.4 | 3.6 | 4.1 | |||||||||||||||||||
Insurance policy benefits | (107.4) | (113.9) | (341.3) | (348.5) | |||||||||||||||||||
Amortization and non-deferred commissions | (10.7) | (12.4) | (32.7) | (38.0) | |||||||||||||||||||
Margin from Medicare supplement | $ | 37.2 | $ | 38.7 | $ | 95.6 | $ | 113.1 | |||||||||||||||
Margin/insurance policy income | 24 | % | 24 | % | 21 | % | 23 | % | |||||||||||||||
Long-term care | |||||||||||||||||||||||
Insurance policy income | $ | 65.7 | $ | 66.4 | $ | 197.2 | $ | 199.2 | |||||||||||||||
Net investment income | 34.1 | 34.2 | 102.4 | 102.8 | |||||||||||||||||||
Insurance policy benefits | (73.1) | (71.1) | (222.9) | (212.1) | |||||||||||||||||||
Amortization and non-deferred commissions | (3.5) | (3.4) | (10.4) | (9.6) | |||||||||||||||||||
Margin from long-term care | $ | 23.2 | $ | 26.1 | $ | 66.3 | $ | 80.3 | |||||||||||||||
Margin/insurance policy income | 35 | % | 39 | % | 34 | % | 40 | % | |||||||||||||||
Total health margin | $ | 123.2 | $ | 123.3 | $ | 347.9 | $ | 364.0 | |||||||||||||||
Margin/insurance policy income | 31 | % | 31 | % | 29 | % | 30 | % |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Commission expense and agent manager benefits | $ | 17.3 | $ | 19.8 | $ | 53.5 | $ | 52.3 | |||||||
Other operating expenses | 91.1 | 85.7 | 274.7 | 259.9 | |||||||||||
Total | $ | 108.4 | $ | 105.5 | $ | 328.2 | $ | 312.2 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Premium collections: | |||||||||||||||
Supplemental health and other health | $ | 145.2 | $ | 141.5 | $ | 443.2 | $ | 425.3 | |||||||
Medicare supplement | 11.7 | 14.6 | 38.7 | 46.1 | |||||||||||
Life | 7.1 | 7.1 | 22.3 | 21.7 | |||||||||||
Annuity | .2 | .2 | .6 | 1.0 | |||||||||||
Total collections | $ | 164.2 | $ | 163.4 | $ | 504.8 | $ | 494.1 | |||||||
Average liabilities for insurance products: | |||||||||||||||
Fixed index annuities | $ | 309.9 | $ | 346.0 | $ | 317.9 | $ | 355.1 | |||||||
Fixed interest annuities | 96.6 | 105.6 | 98.9 | 108.4 | |||||||||||
SPIAs and supplemental contracts: | |||||||||||||||
Mortality based | 231.8 | 251.9 | 232.5 | 250.4 | |||||||||||
Deposit based | 267.8 | 267.1 | 269.7 | 266.5 | |||||||||||
Separate Accounts | 4.8 | 4.7 | 4.7 | 4.7 | |||||||||||
Health: | |||||||||||||||
Supplemental health | 2,749.9 | 2,621.7 | 2,715.3 | 2,589.1 | |||||||||||
Medicare supplement | 23.9 | 27.8 | 25.4 | 28.5 | |||||||||||
Other health | 13.4 | 14.1 | 13.7 | 14.2 | |||||||||||
Life: | |||||||||||||||
Interest sensitive | 148.9 | 150.3 | 149.0 | 150.5 | |||||||||||
Non-interest sensitive | 174.1 | 178.9 | 174.2 | 180.6 | |||||||||||
Total average liabilities for insurance products, net of reinsurance ceded | $ | 4,021.1 | $ | 3,968.1 | $ | 4,001.3 | $ | 3,948.0 | |||||||
Revenues: | |||||||||||||||
Insurance policy income | $ | 167.4 | $ | 164.4 | $ | 502.0 | $ | 490.0 | |||||||
Net investment income: | |||||||||||||||
General account invested assets | 65.5 | 66.0 | 193.7 | 190.3 | |||||||||||
Fixed index products | 2.0 | 1.5 | 5.8 | .3 | |||||||||||
Trading account income (loss) related to policyholder accounts | .5 | (.4 | ) | 2.4 | .7 | ||||||||||
Fee revenue and other income | .3 | .4 | .8 | 1.0 | |||||||||||
Total revenues | 235.7 | 231.9 | 704.7 | 682.3 | |||||||||||
Expenses: | |||||||||||||||
Insurance policy benefits | 138.0 | 138.7 | 415.7 | 405.6 | |||||||||||
Amounts added to policyholder account balances: | |||||||||||||||
Cost of interest credited to policyholders | 3.2 | 3.3 | 9.7 | 10.3 | |||||||||||
Cost of options to fund index credits, net of forfeitures | 1.2 | 1.2 | 3.2 | 4.4 | |||||||||||
Market value changes credited to policyholders | 2.3 | 1.3 | 8.1 | 1.7 | |||||||||||
Amortization related to operations | 14.3 | 14.3 | 43.9 | 44.5 | |||||||||||
Interest expense on investment borrowings | 1.7 | .9 | 4.5 | 2.5 | |||||||||||
Other operating costs and expenses | 47.5 | 47.0 | 145.0 | 140.3 | |||||||||||
Total benefits and expenses | 208.2 | 206.7 | 630.1 | 609.3 | |||||||||||
Income before net realized investment gains and fair value changes in embedded derivative liabilities, net of related amortization, and income taxes | 27.5 | 25.2 | 74.6 | 73.0 | |||||||||||
Net realized investment gains | 6.5 | .1 | 12.6 | 27.2 | |||||||||||
Amortization related to net realized investment gains | — | — | — | (.3 | ) | ||||||||||
Net realized investment gains, net of related amortization | 6.5 | .1 | 12.6 | 26.9 | |||||||||||
Insurance policy benefits - fair value changes in embedded derivative liabilities | .1 | .5 | — | (1.3 | ) | ||||||||||
Amortization related to fair value changes in embedded derivative liabilities | (.1 | ) | (.4 | ) | — | .9 | |||||||||
Fair value changes in embedded derivative liabilities, net of related amortization | — | .1 | — | (.4 | ) | ||||||||||
Income before income taxes | $ | 34.0 | $ | 25.4 | $ | 87.2 | $ | 99.5 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Health benefit ratios: | |||||||||||||||
Medicare supplement: | |||||||||||||||
Insurance policy benefits | $ | 9.1 | $ | 10.7 | $ | 28.3 | $ | 33.0 | |||||||
Benefit ratio (a) | 68.1 | % | 69.5 | % | 68.4 | % | 69.5 | % | |||||||
Supplemental health and other: | |||||||||||||||
Insurance policy benefits | $ | 122.4 | $ | 118.8 | $ | 369.2 | $ | 352.6 | |||||||
Benefit ratio (a) | 83.2 | % | 84.0 | % | 84.1 | % | 83.6 | % | |||||||
Interest-adjusted benefit ratio (b) | 59.0 | % | 59.8 | % | 60.0 | % | 59.7 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Life margin: | |||||||||||||||||||||||
Interest-sensitive life | |||||||||||||||||||||||
Insurance policy income | $ | 45.1 | $ | 43.5 | $ | 134.9 | $ | 130.4 | |||||||||||||||
Net investment income | 12.9 | 12.9 | 38.7 | 38.7 | |||||||||||||||||||
Insurance policy benefits | (18.1) | (20.5) | (53.4) | (57.5) | |||||||||||||||||||
Interest credited | (11.9) | (12.4) | (35.9) | (35.8) | |||||||||||||||||||
Amortization and non-deferred commissions | (5.1) | (5.9) | (14.5) | (17.5) | |||||||||||||||||||
Margin from interest-sensitive life | $ | 22.9 | $ | 17.6 | $ | 69.8 | $ | 58.3 | |||||||||||||||
Average net insurance liabilities | $ | 1,039.6 | $ | 1,019.2 | $ | 1,035.7 | $ | 1,015.0 | |||||||||||||||
Interest margin | $ | 1.0 | $ | .5 | $ | 2.8 | $ | 2.9 | |||||||||||||||
Interest margin/average net insurance liabilities | .38 | % | .20 | % | .36 | % | .38 | % | |||||||||||||||
Underwriting margin | $ | 21.9 | $ | 17.1 | $ | 67.0 | $ | 55.4 | |||||||||||||||
Underwriting margin/insurance policy income | 49 | % | 39 | % | 50 | % | 42 | % | |||||||||||||||
Traditional life | |||||||||||||||||||||||
Insurance policy income | $ | 175.9 | $ | 169.9 | $ | 528.2 | $ | 512.6 | |||||||||||||||
Net investment income | 23.4 | 22.5 | 70.0 | 67.4 | |||||||||||||||||||
Insurance policy benefits | (122.6) | (118.2) | (377.3) | (362.0) | |||||||||||||||||||
Interest credited | (.2) | (.2) | (.5) | (.5) | |||||||||||||||||||
Amortization and non-deferred commissions | (17.0) | (13.8) | (48.3) | (39.9) | |||||||||||||||||||
Advertising expense | (22.6) | (22.1) | (76.8) | (74.0) | |||||||||||||||||||
Margin from traditional life | $ | 36.9 | $ | 38.1 | $ | 95.3 | $ | 103.6 | |||||||||||||||
Margin/insurance policy income | 21 | % | 22 | % | 18 | % | 20 | % | |||||||||||||||
Margin excluding advertising expense/insurance policy income | 34 | % | 35 | % | 33 | % | 35 | % | |||||||||||||||
Total life margin | $ | 59.8 | $ | 55.7 | $ | 165.1 | $ | 161.9 | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Premium collections: | |||||||||||||||
Life | $ | 72.2 | $ | 70.1 | $ | 218.1 | $ | 208.6 | |||||||
Supplemental health | .4 | .6 | 1.5 | 1.8 | |||||||||||
Total collections | $ | 72.6 | $ | 70.7 | $ | 219.6 | $ | 210.4 | |||||||
Average liabilities for insurance products: | |||||||||||||||
SPIAs - mortality based | $ | 73.6 | $ | 76.1 | $ | 73.0 | $ | 73.8 | |||||||
Health: | |||||||||||||||
Medicare supplement | 5.6 | 6.4 | 5.8 | 6.6 | |||||||||||
Other health | 4.1 | 4.2 | 4.1 | 4.3 | |||||||||||
Life: | |||||||||||||||
Interest sensitive | 15.4 | 16.3 | 15.6 | 16.2 | |||||||||||
Non-interest sensitive | 720.1 | 691.9 | 714.3 | 685.8 | |||||||||||
Total average liabilities for insurance products, net of reinsurance ceded | $ | 818.8 | $ | 794.9 | $ | 812.8 | $ | 786.7 | |||||||
Revenues: | |||||||||||||||
Insurance policy income | $ | 73.1 | $ | 70.9 | $ | 219.1 | $ | 210.5 | |||||||
Net investment income on general account invested assets | 11.0 | 11.1 | 33.1 | 33.0 | |||||||||||
Fee revenue and other income | .3 | .2 | .9 | .8 | |||||||||||
Total revenues | 84.4 | 82.2 | 253.1 | 244.3 | |||||||||||
Expenses: | |||||||||||||||
Insurance policy benefits | 47.5 | 50.1 | 150.3 | 150.8 | |||||||||||
Amounts added to annuity and interest-sensitive life product account balances | .2 | .2 | .5 | .5 | |||||||||||
Amortization related to operations | 3.9 | 3.7 | 11.9 | 11.3 | |||||||||||
Interest expense on investment borrowings | .3 | .1 | .7 | .4 | |||||||||||
Other operating costs and expenses | 23.5 | 27.2 | 73.0 | 84.2 | |||||||||||
Total benefits and expenses | 75.4 | 81.3 | 236.4 | 247.2 | |||||||||||
Income (loss) before net realized investment gains (losses) and income taxes | 9.0 | .9 | 16.7 | (2.9 | ) | ||||||||||
Net realized investment gains (losses) | 1.0 | .3 | .8 | (.2 | ) | ||||||||||
Income (loss) before income taxes | $ | 10.0 | $ | 1.2 | $ | 17.5 | $ | (3.1 | ) |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Collected premiums from annuity and interest-sensitive life products: | |||||||||||||||||||||||
Annuities | $ | 372.2 | $ | 370.0 | $ | 1,144.9 | $ | 1,173.6 | |||||||||||||||
Interest-sensitive life | 58.3 | 56.6 | 176.8 | 169.8 | |||||||||||||||||||
Total collected premiums from annuity and interest-sensitive life products | $ | 430.5 | $ | 426.6 | $ | 1,321.7 | $ | 1,343.4 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net investment income | $ | 291.8 | $ | 268.1 | $ | 1,034.5 | $ | 700.2 | |||||||||||||||
Allocated to product lines: | |||||||||||||||||||||||
Annuity | (131.0) | (121.1) | (384.1) | (356.4) | |||||||||||||||||||
Health | (74.2) | (73.3) | (222.5) | (219.6) | |||||||||||||||||||
Life | (36.3) | (35.4) | (108.7) | (106.1) | |||||||||||||||||||
Equity returns credited to policyholder account balances | 54.6 | 34.9 | (26.3) | 199.2 | |||||||||||||||||||
Amounts allocated to product lines and credited to policyholder account balances | (186.9) | (194.9) | (741.6) | (482.9) | |||||||||||||||||||
Impact of annual option forfeitures related to fixed indexed annuity surrenders | 2.5 | (1.1) | 3.9 | — | |||||||||||||||||||
Amount related to variable interest entities and other non-operating items | (18.7) | (13.6) | (58.6) | (29.9) | |||||||||||||||||||
Interest expense on debt | (15.7) | (15.6) | (47.0) | (46.9) | |||||||||||||||||||
Interest expense on financing arrangements | (1.1) | — | (1.1) | — | |||||||||||||||||||
Interest expense on investment borrowings from FHLB | (28.3) | (10.3) | (74.2) | (17.4) | |||||||||||||||||||
Expenses related to FABN program | (7.6) | (7.5) | (22.8) | (22.4) | |||||||||||||||||||
Less amounts credited to deferred compensation plans (offsetting investment income) | 2.4 | 2.0 | (11.2) | 18.0 | |||||||||||||||||||
Total adjustments | (66.5) | (46.1) | (211.0) | (98.6) | |||||||||||||||||||
Investment income not allocated to product lines | $ | 38.4 | $ | 27.1 | $ | 81.9 | $ | 118.7 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net realized investment losses from sales and change in allowance for credit losses | $ | (20.1) | $ | (.7) | $ | (64.1) | $ | (35.0) | |||||||||||||||
Net change in market value of investments recognized in earnings | (9.2) | (17.0) | (15.1) | (64.2) | |||||||||||||||||||
Fair value changes related to agent deferred compensation plan | 6.8 | 12.0 | 6.8 | 48.7 | |||||||||||||||||||
Changes in fair value of embedded derivative liabilities and market risk benefits | 109.4 | 130.6 | 94.7 | 456.6 | |||||||||||||||||||
Other | (1.1) | 2.0 | 1.0 | 2.2 | |||||||||||||||||||
Net non-operating income before taxes | $ | 85.8 | $ | 126.9 | $ | 23.3 | $ | 408.3 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Adjusted EBIT from In-Force Business | |||||||||||||||
Revenues: | |||||||||||||||
Insurance policy income | $ | 61.0 | $ | 57.2 | $ | 180.8 | $ | 169.0 | |||||||
Net investment income and other | 11.3 | 11.3 | 34.0 | 33.8 | |||||||||||
Total revenues | 72.3 | 68.5 | 214.8 | 202.8 | |||||||||||
Benefits and expenses: | |||||||||||||||
Insurance policy benefits | 40.3 | 41.9 | 127.5 | 126.0 | |||||||||||
Amortization | 3.7 | 3.5 | 11.3 | 10.7 | |||||||||||
Other expenses | 8.5 | 8.9 | 24.7 | 25.1 | |||||||||||
Total benefits and expenses | 52.5 | 54.3 | 163.5 | 161.8 | |||||||||||
Adjusted EBIT from In-Force Business | $ | 19.8 | $ | 14.2 | $ | 51.3 | $ | 41.0 | |||||||
Adjusted EBIT from New Business | |||||||||||||||
Revenues: | |||||||||||||||
Insurance policy income | $ | 12.1 | $ | 13.7 | $ | 38.3 | $ | 41.5 | |||||||
Net investment income and other | — | — | — | — | |||||||||||
Total revenues | 12.1 | 13.7 | 38.3 | 41.5 | |||||||||||
Benefits and expenses: | |||||||||||||||
Insurance policy benefits | 7.4 | 8.4 | 23.3 | 25.3 | |||||||||||
Amortization | .2 | .2 | .6 | .6 | |||||||||||
Other expenses | 15.3 | 18.4 | 49.0 | 59.5 | |||||||||||
Total benefits and expenses | 22.9 | 27.0 | 72.9 | 85.4 | |||||||||||
Adjusted EBIT from New Business | $ | (10.8 | ) | $ | (13.3 | ) | $ | (34.6 | ) | $ | (43.9 | ) | |||
Adjusted EBIT from In-Force and New Business | |||||||||||||||
Revenues: | |||||||||||||||
Insurance policy income | $ | 73.1 | $ | 70.9 | $ | 219.1 | $ | 210.5 | |||||||
Net investment income and other | 11.3 | 11.3 | 34.0 | 33.8 | |||||||||||
Total revenues | 84.4 | 82.2 | 253.1 | 244.3 | |||||||||||
Benefits and expenses: | |||||||||||||||
Insurance policy benefits | 47.7 | 50.3 | 150.8 | 151.3 | |||||||||||
Amortization | 3.9 | 3.7 | 11.9 | 11.3 | |||||||||||
Other expenses | 23.8 | 27.3 | 73.7 | 84.6 | |||||||||||
Total benefits and expenses | 75.4 | 81.3 | 236.4 | 247.2 | |||||||||||
Adjusted EBIT from In-Force and New Business | $ | 9.0 | $ | .9 | $ | 16.7 | $ | (2.9 | ) |
Three months ended | Nine months ended | ||||||
September 30, 2017 | September 30, 2017 | ||||||
Premium collections: | |||||||
Long-term care (all renewal) | $ | 3.9 | $ | 12.9 | |||
Average liabilities for insurance products: | |||||||
Average liabilities for long-term care products | $ | 579.6 | $ | 571.2 | |||
Revenues: | |||||||
Insurance policy income | $ | 4.2 | $ | 13.3 | |||
Net investment income on general account invested assets | 6.8 | 26.5 | |||||
Total revenues | 11.0 | 39.8 | |||||
Expenses: | |||||||
Insurance policy benefits | 11.4 | 36.6 | |||||
Other operating costs and expenses | .6 | 2.1 | |||||
Total benefits and expenses | 12.0 | 38.7 | |||||
Income (loss) before net realized investment gains and income taxes | (1.0 | ) | 1.1 | ||||
Net realized investment gains | 6.7 | 7.8 | |||||
Income before income taxes | $ | 5.7 | $ | 8.9 |
Three months ended | Nine months ended | ||||||
September 30, 2017 | September 30, 2017 | ||||||
Health benefit ratios: | |||||||
Long-term care: | |||||||
Insurance policy benefits | $ | 11.4 | $ | 36.6 | |||
Benefit ratio (a) | 274.3 | % | 276.5 | % | |||
Interest-adjusted benefit ratio (b) | 99.4 | % | 111.2 | % |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Corporate operations: | |||||||||||||||
Interest expense on corporate debt | $ | (11.7 | ) | $ | (11.5 | ) | $ | (34.8 | ) | $ | (34.3 | ) | |||
Net investment income (loss): | |||||||||||||||
General investment portfolio | 1.4 | 1.5 | 3.7 | 4.4 | |||||||||||
Other special-purpose portfolios: | |||||||||||||||
COLI | 2.3 | 2.3 | 11.6 | 2.0 | |||||||||||
Investments held in a rabbi trust | .9 | .6 | 2.4 | 1.0 | |||||||||||
Other trading account activities | 2.4 | 2.3 | 7.1 | 9.2 | |||||||||||
Fee revenue and other income | 1.8 | 2.5 | 6.5 | 7.6 | |||||||||||
Other operating costs and expenses | (23.7 | ) | (13.6 | ) | (68.3 | ) | (43.7 | ) | |||||||
Loss before net realized investment gains (losses), earnings attributable to VIEs, fair value changes and amendment related to agent deferred compensation plan, loss on reinsurance transaction and income taxes | (26.6 | ) | (15.9 | ) | (71.8 | ) | (53.8 | ) | |||||||
Net realized investment gains (losses) | (.6 | ) | 10.3 | — | (3.0 | ) | |||||||||
Earnings attributable to VIEs | (3.3 | ) | (.7 | ) | (4.6 | ) | (1.2 | ) | |||||||
Fair value changes and amendment related to agent deferred compensation plan | (13.4 | ) | 6.3 | (13.4 | ) | (12.0 | ) | ||||||||
Loss on reinsurance transaction | — | (75.4 | ) | — | (75.4 | ) | |||||||||
Loss before income taxes | $ | (43.9 | ) | $ | (75.4 | ) | $ | (89.8 | ) | $ | (145.4 | ) |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
First year: | |||||||||||||||
Bankers Life | $ | 288.2 | $ | 304.8 | $ | 919.2 | $ | 869.7 | |||||||
Washington National | 18.9 | 19.0 | 59.1 | 58.9 | |||||||||||
Colonial Penn | 12.1 | 13.8 | 38.5 | 41.6 | |||||||||||
Total first year | 319.2 | 337.6 | 1,016.8 | 970.2 | |||||||||||
Renewal: | |||||||||||||||
Bankers Life | 353.5 | 361.1 | 1,090.9 | 1,085.1 | |||||||||||
Washington National | 145.3 | 144.4 | 445.7 | 435.2 | |||||||||||
Colonial Penn | 60.5 | 56.9 | 181.1 | 168.8 | |||||||||||
Long-term care in run-off | 3.9 | — | 12.9 | — | |||||||||||
Total renewal | 563.2 | 562.4 | 1,730.6 | 1,689.1 | |||||||||||
Total premiums collected | $ | 882.4 | $ | 900.0 | $ | 2,747.4 | $ | 2,659.3 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Premiums collected by product: | |||||||||||||||
Annuities: | |||||||||||||||
Fixed index (first-year) | $ | 222.6 | $ | 218.1 | $ | 705.1 | $ | 597.6 | |||||||
Other fixed interest (first-year) | 12.9 | 25.4 | 48.6 | 82.8 | |||||||||||
Other fixed interest (renewal) | 1.0 | 1.6 | 4.6 | 4.7 | |||||||||||
Subtotal - other fixed interest annuities | 13.9 | 27.0 | 53.2 | 87.5 | |||||||||||
Total annuities | 236.5 | 245.1 | 758.3 | 685.1 | |||||||||||
Health: | |||||||||||||||
Medicare supplement (first-year) | 16.8 | 18.8 | 51.9 | 56.3 | |||||||||||
Medicare supplement (renewal) | 160.4 | 163.4 | 496.7 | 491.8 | |||||||||||
Subtotal - Medicare supplement | 177.2 | 182.2 | 548.6 | 548.1 | |||||||||||
Long-term care (first-year) | 3.8 | 4.4 | 12.1 | 13.2 | |||||||||||
Long-term care (renewal) | 103.5 | 111.9 | 324.3 | 340.7 | |||||||||||
Subtotal - long-term care | 107.3 | 116.3 | 336.4 | 353.9 | |||||||||||
Supplemental health (first-year) | 1.1 | 1.4 | 3.8 | 4.1 | |||||||||||
Supplemental health (renewal) | 4.4 | 4.0 | 13.0 | 11.6 | |||||||||||
Subtotal – supplemental health | 5.5 | 5.4 | 16.8 | 15.7 | |||||||||||
Other health (first-year) | .2 | — | .6 | — | |||||||||||
Other health (renewal) | 1.3 | 1.5 | 4.0 | 4.7 | |||||||||||
Subtotal - other health | 1.5 | 1.5 | 4.6 | 4.7 | |||||||||||
Total health | 291.5 | 305.4 | 906.4 | 922.4 | |||||||||||
Life insurance: | |||||||||||||||
Traditional (first-year) | 19.8 | 18.8 | 62.1 | 61.8 | |||||||||||
Traditional (renewal) | 53.9 | 52.3 | 162.3 | 154.5 | |||||||||||
Subtotal - traditional | 73.7 | 71.1 | 224.4 | 216.3 | |||||||||||
Interest-sensitive (first-year) | 11.0 | 17.9 | 35.0 | 53.9 | |||||||||||
Interest-sensitive (renewal) | 29.0 | 26.4 | 86.0 | 77.1 | |||||||||||
Subtotal - interest-sensitive | 40.0 | 44.3 | 121.0 | 131.0 | |||||||||||
Total life insurance | 113.7 | 115.4 | 345.4 | 347.3 | |||||||||||
Collections on insurance products: | |||||||||||||||
Total first-year premium collections on insurance products | 288.2 | 304.8 | 919.2 | 869.7 | |||||||||||
Total renewal premium collections on insurance products | 353.5 | 361.1 | 1,090.9 | 1,085.1 | |||||||||||
Total collections on insurance products | $ | 641.7 | $ | 665.9 | $ | 2,010.1 | $ | 1,954.8 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Premiums collected by product: | |||||||||||||||
Health: | |||||||||||||||
Medicare supplement (renewal) | $ | 11.7 | $ | 14.6 | $ | 38.7 | $ | 46.1 | |||||||
Supplemental health (first-year) | 17.8 | 17.7 | 55.2 | 54.5 | |||||||||||
Supplemental health (renewal) | 127.0 | 123.3 | 386.7 | 369.4 | |||||||||||
Subtotal – supplemental health | 144.8 | 141.0 | 441.9 | 423.9 | |||||||||||
Other health (first-year) | .1 | .1 | .2 | .2 | |||||||||||
Other health (renewal) | .3 | .4 | 1.1 | 1.2 | |||||||||||
Subtotal - other health | .4 | .5 | 1.3 | 1.4 | |||||||||||
Total health | 156.9 | 156.1 | 481.9 | 471.4 | |||||||||||
Life insurance: | |||||||||||||||
Traditional (first-year) | .1 | .2 | .5 | .6 | |||||||||||
Traditional (renewal) | 2.5 | 2.6 | 7.7 | 8.0 | |||||||||||
Subtotal - traditional | 2.6 | 2.8 | 8.2 | 8.6 | |||||||||||
Interest-sensitive (first-year) | .9 | 1.0 | 3.2 | 3.6 | |||||||||||
Interest-sensitive (renewal) | 3.6 | 3.3 | 10.9 | 9.5 | |||||||||||
Subtotal - interest-sensitive | 4.5 | 4.3 | 14.1 | 13.1 | |||||||||||
Total life insurance | 7.1 | 7.1 | 22.3 | 21.7 | |||||||||||
Annuities: | |||||||||||||||
Fixed index (renewal) | .1 | .2 | .4 | .8 | |||||||||||
Other fixed interest (renewal) | .1 | — | .2 | .2 | |||||||||||
Total annuities | .2 | .2 | .6 | 1.0 | |||||||||||
Collections on insurance products: | |||||||||||||||
Total first-year premium collections on insurance products | 18.9 | 19.0 | 59.1 | 58.9 | |||||||||||
Total renewal premium collections on insurance products | 145.3 | 144.4 | 445.7 | 435.2 | |||||||||||
Total collections on insurance products | $ | 164.2 | $ | 163.4 | $ | 504.8 | $ | 494.1 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Premiums collected by product: | |||||||||||||||
Life insurance: | |||||||||||||||
Traditional (first-year) | $ | 12.1 | $ | 13.8 | $ | 38.5 | $ | 41.6 | |||||||
Traditional (renewal) | 60.0 | 56.2 | 179.4 | 166.7 | |||||||||||
Subtotal - traditional | 72.1 | 70.0 | 217.9 | 208.3 | |||||||||||
Interest-sensitive (all renewal) | .1 | .1 | .2 | .3 | |||||||||||
Total life insurance | 72.2 | 70.1 | 218.1 | 208.6 | |||||||||||
Health (all renewal): | |||||||||||||||
Medicare supplement | .4 | .6 | 1.4 | 1.7 | |||||||||||
Other health | — | — | .1 | .1 | |||||||||||
Total health | .4 | .6 | 1.5 | 1.8 | |||||||||||
Collections on insurance products: | |||||||||||||||
Total first-year premium collections on insurance products | 12.1 | 13.8 | 38.5 | 41.6 | |||||||||||
Total renewal premium collections on insurance products | 60.5 | 56.9 | 181.1 | 168.8 | |||||||||||
Total collections on insurance products | $ | 72.6 | $ | 70.7 | $ | 219.6 | $ | 210.4 |
Three months ended | Nine months ended | ||||||
September 30, 2017 | September 30, 2017 | ||||||
Premiums collected by product: | |||||||
Health: | |||||||
Long-term care (renewal) | $ | 3.9 | $ | 12.9 |
September 30, 2023 | December 31, 2022 | ||||||||||
Total capital: | |||||||||||
Corporate notes payable | $ | 1,140.1 | $ | 1,138.8 | |||||||
Shareholders’ equity: | |||||||||||
Common stock | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 1,965.3 | 2,033.8 | |||||||||
Accumulated other comprehensive loss | (1,956.7) | (1,957.3) | |||||||||
Retained earnings | 1,880.4 | 1,691.2 | |||||||||
Total shareholders’ equity | 1,890.1 | 1,768.8 | |||||||||
Total capital | $ | 3,030.2 | $ | 2,907.6 |
September 30, 2017 | December 31, 2016 | ||||||
Total capital: | |||||||
Corporate notes payable | $ | 914.4 | $ | 912.9 | |||
Shareholders’ equity: | |||||||
Common stock | 1.7 | 1.7 | |||||
Additional paid-in capital | 3,094.5 | 3,212.1 | |||||
Accumulated other comprehensive income | 933.6 | 622.4 | |||||
Retained earnings | 851.9 | 650.7 | |||||
Total shareholders’ equity | 4,881.7 | 4,486.9 | |||||
Total capital | $ | 5,796.1 | $ | 5,399.8 |
September 30, 2017 | December 31, 2016 | September 30, 2023 | December 31, 2022 | |||||||||||||||
Book value per common share | $ | 29.10 | $ | 25.82 | Book value per common share | $ | 16.85 | $ | 15.47 | |||||||||
Book value per common share, excluding accumulated other comprehensive income (a) | 23.53 | 22.24 | ||||||||||||||||
Ratio of earnings to fixed charges | 2.92X | 2.43X | ||||||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) (a) | Book value per common share, excluding accumulated other comprehensive income (loss) (a) | 34.30 | 32.59 | |||||||||||||||
Debt to total capital ratios: | Debt to total capital ratios: | |||||||||||||||||
Corporate debt to total capital | 15.8 | % | 16.9 | % | Corporate debt to total capital | 37.6 | % | 39.2 | % | |||||||||
Corporate debt to total capital, excluding accumulated other comprehensive income (a) | 18.8 | % | 19.1 | % | ||||||||||||||
Corporate debt to total capital, excluding accumulated other comprehensive income (loss) (a) (b) | Corporate debt to total capital, excluding accumulated other comprehensive income (loss) (a) (b) | 22.9 | % | 23.4 | % |
(a)This non-GAAP measure differs from the corresponding GAAP measure presented immediately above, because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in accumulated other comprehensive income (loss). Such volatility is often caused by changes in the |
Investments not included in scope of audit | ||||||||||||||||
Investments included in initial scope of audit | Investments included in additional scope of audit | Cash, fixed maturities and other invested assets | Total investments | |||||||||||||
September 30, 2016 values | $ | 62.2 | $ | 62.6 | $ | 379.8 | $ | 504.6 | ||||||||
Net cash flows (1) | (13.5 | ) | (11.6 | ) | (359.5 | ) | (384.6 | ) | ||||||||
Realized gains (losses) and impairments (2) | .4 | (1.7 | ) | (4.0 | ) | (5.3 | ) | |||||||||
Other activity (6) | 3.9 | 1.9 | .6 | 6.4 | ||||||||||||
December 31, 2016 values | 53.0 | 51.2 | 16.9 | 121.1 | ||||||||||||
Net cash flows (1) | (16.7 | ) | (5.5 | ) | (8.7 | ) | (30.9 | ) | ||||||||
Realized gains (losses) and impairments (3) | 3.2 | (4.5 | ) | 1.0 | (.3 | ) | ||||||||||
Other activity (6) | (1.8 | ) | 1.3 | (1.4 | ) | (1.9 | ) | |||||||||
March 31, 2017 values | 37.7 | 42.5 | 7.8 | 88.0 | ||||||||||||
Net cash flows (1) | .5 | (14.4 | ) | — | (13.9 | ) | ||||||||||
Realized gains (losses) and impairments (4) | (3.1 | ) | 4.5 | — | 1.4 | |||||||||||
Other activity (6) | (.6 | ) | (.4 | ) | .3 | (.7 | ) | |||||||||
June 30, 2017 values | 34.5 | 32.2 | 8.1 | 74.8 | ||||||||||||
Net cash flows (1) | (33.5 | ) | (9.1 | ) | (1.3 | ) | (43.9 | ) | ||||||||
Realized gains (losses) and impairments (5) | 7.0 | (.6 | ) | .3 | 6.7 | |||||||||||
Other activity (6) | (.9 | ) | (.3 | ) | (3.0 | ) | (4.2 | ) | ||||||||
September 30, 2017 values | $ | 7.1 | $ | 22.2 | $ | 4.1 | $ | 33.4 |
Investments included in initial scope of audit | Investments included in additional scope of audit | Total investments included in the scope of audit | ||||||||||
Lease related investments | $ | — | $ | 11.1 | $ | 11.1 | ||||||
Mortgage loans secured by real estate | — | 10.6 | 10.6 | |||||||||
Senior secured loans to companies in the energy sector (7) | 2.1 | — | 2.1 | |||||||||
Senior secured loans to other companies | — | .5 | .5 | |||||||||
Secured term loan issued by Platinum Partners Credit Opportunity Master Fund L.P. | 5.0 | — | 5.0 | |||||||||
Total investments | $ | 7.1 | $ | 22.2 | $ | 29.3 |
Amount | Maturity | Interest rate at | ||||
borrowed | date | September 30, 2017 | ||||
$ | 50.0 | February 2018 | Variable rate – 1.404% | |||
50.0 | August 2018 | Variable rate – 1.435% | ||||
50.0 | January 2019 | Variable rate – 1.724% | ||||
50.0 | February 2019 | Variable rate – 1.404% | ||||
100.0 | March 2019 | Variable rate – 1.714% | ||||
21.8 | July 2019 | Variable rate – 1.727% | ||||
15.0 | October 2019 | Variable rate – 1.830% | ||||
50.0 | May 2020 | Variable rate – 1.754% | ||||
21.8 | June 2020 | Fixed rate – 1.960% | ||||
25.0 | September 2020 | Variable rate – 1.953% | ||||
100.0 | September 2020 | Variable rate – 1.897% | ||||
50.0 | September 2020 | Variable rate – 1.894% | ||||
75.0 | September 2020 | Variable rate – 1.453% | ||||
100.0 | October 2020 | Variable rate – 1.409% | ||||
50.0 | December 2020 | Variable rate – 1.932% | ||||
100.0 | July 2021 | Variable rate – 1.854% | ||||
100.0 | July 2021 | Variable rate – 1.824% | ||||
28.2 | August 2021 | Fixed rate – 2.550% | ||||
57.7 | August 2021 | Variable rate - 1.842% | ||||
125.0 | August 2021 | Variable rate – 1.717% | ||||
50.0 | September 2021 | Variable rate – 1.857% | ||||
22.0 | May 2022 | Variable rate – 1.668% | ||||
100.0 | May 2022 | Variable rate – 1.666% | ||||
10.0 | June 2022 | Variable rate – 1.931% | ||||
50.0 | July 2022 | Variable rate – 1.675% | ||||
50.0 | July 2022 | Variable rate – 1.693% | ||||
50.0 | July 2022 | Variable rate – 1.694% | ||||
50.0 | August 2022 | Variable rate – 1.702% | ||||
24.9 | March 2023 | Fixed rate – 2.160% | ||||
20.5 | June 2025 | Fixed rate – 2.940% | ||||
$ | 1,646.9 |
Subsidiaries of CLTX | Earned surplus (deficit) | Additional information | ||||
Bankers Life | $ | 567.4 | (a) | |||
Colonial Penn | (306.8 | ) | (b) |
Earned surplus (deficit) | Additional information | |||||||||||||
Bankers Life |
$ | 375.9 | (a) | ||||||||||||
(507.5) | (b) |
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Estimated fair value | ||||||||||||||||||||||||||||||||||||
Investment grade (a): | Investment grade (a): | |||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 12,356.1 | $ | 1,509.8 | $ | (20.3 | ) | $ | 13,845.6 | Corporate securities | $ | 12,751.9 | $ | 10.3 | $ | (2,248.1) | $ | (38.4) | $ | 10,475.7 | ||||||||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | 145.4 | 26.9 | — | 172.3 | United States Treasury securities and obligations of United States government corporations and agencies | 194.2 | — | (28.8) | — | 165.4 | ||||||||||||||||||||||||||||||||||
States and political subdivisions | 1,854.2 | 220.7 | (.6 | ) | 2,074.3 | States and political subdivisions | 2,837.9 | 7.0 | (547.0) | (1.5) | 2,296.4 | |||||||||||||||||||||||||||||||||
Debt securities issued by foreign governments | 58.1 | 3.1 | (.1 | ) | 61.1 | |||||||||||||||||||||||||||||||||||||||
Foreign governments | Foreign governments | 93.3 | — | (16.6) | (.7) | 76.0 | ||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 1,203.2 | 43.8 | (1.9 | ) | 1,245.1 | Asset-backed securities | 1,388.3 | .2 | (124.1) | (.2) | 1,264.2 | |||||||||||||||||||||||||||||||||
Collateralized debt obligations | 236.5 | 1.4 | — | 237.9 | ||||||||||||||||||||||||||||||||||||||||
Agency residential mortgage-backed securities | Agency residential mortgage-backed securities | 627.9 | .6 | (12.6) | — | 615.9 | ||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | Non-agency residential mortgage-backed securities | 1,171.3 | 4.6 | (183.2) | — | 992.7 | ||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | Collateralized loan obligations | 1,077.7 | 1.9 | (20.1) | — | 1,059.5 | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,261.0 | 36.6 | (9.2 | ) | 1,288.4 | Commercial mortgage-backed securities | 2,462.5 | .6 | (285.4) | — | 2,177.7 | |||||||||||||||||||||||||||||||||
Mortgage pass-through securities | 2.0 | .2 | — | 2.2 | ||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 310.6 | 17.6 | (.5 | ) | 327.7 | |||||||||||||||||||||||||||||||||||||||
Total investment grade fixed maturities, available for sale | 17,427.1 | 1,860.1 | (32.6 | ) | 19,254.6 | Total investment grade fixed maturities, available for sale | 22,605.0 | 25.2 | (3,465.9) | (40.8) | 19,123.5 | |||||||||||||||||||||||||||||||||
Below-investment grade (a) (b): | Below-investment grade (a) (b): | |||||||||||||||||||||||||||||||||||||||||||
Corporate securities | 789.3 | 27.8 | (12.7 | ) | 804.4 | Corporate securities | 560.2 | .4 | (49.0) | (28.4) | 483.2 | |||||||||||||||||||||||||||||||||
States and political subdivisions | 3.0 | — | (.3 | ) | 2.7 | States and political subdivisions | 10.6 | — | (.8) | (.2) | 9.6 | |||||||||||||||||||||||||||||||||
Asset-backed securities | 1,405.4 | 136.8 | (1.2 | ) | 1,541.0 | Asset-backed securities | 111.9 | — | (16.9) | — | 95.0 | |||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | Non-agency residential mortgage-backed securities | 524.5 | 29.1 | (21.1) | — | 532.5 | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 50.6 | .8 | (.9 | ) | 50.5 | Commercial mortgage-backed securities | 87.3 | — | (25.9) | — | 61.4 | |||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 417.1 | 59.7 | (.1 | ) | 476.7 | |||||||||||||||||||||||||||||||||||||||
Total below-investment grade fixed maturities, available for sale | 2,665.4 | 225.1 | (15.2 | ) | 2,875.3 | Total below-investment grade fixed maturities, available for sale | 1,294.5 | 29.5 | (113.7) | (28.6) | 1,181.7 | |||||||||||||||||||||||||||||||||
Total fixed maturities, available for sale | $ | 20,092.5 | $ | 2,085.2 | $ | (47.8 | ) | $ | 22,129.9 | Total fixed maturities, available for sale | $ | 23,899.5 | $ | 54.7 | $ | (3,579.6) | $ | (69.4) | $ | 20,305.2 |
(a)Investment ratings are assigned the second lowest rating by Nationally Recognized Statistical Rating Organizations ("NRSROs") (Moody's, S&P or Fitch), or if not rated by such firms, the rating assigned by the NAIC. NAIC designations of "1" or "2" include fixed maturities generally rated investment grade (rated "Baa3" or higher by Moody's or rated "BBB-" or higher by S&P and Fitch). NAIC designations of "3" through "6" are referred to as below-investment grade (which generally are rated "Ba1" or lower by Moody's or rated "BB+" or lower by S&P and Fitch). References to investment grade or below-investment grade throughout our consolidated financial statements are determined as described above. (b) Certain structured securities rated below-investment grade by NRSROs may be assigned a NAIC 1 or NAIC 2 designation based on the cost basis of the security relative to estimated recoverable amounts as determined by the NAIC. Refer to the table below for a summary of our fixed maturity securities, available for sale, by NAIC designations. |
NAIC Designation | NRSRO Equivalent Rating | |||||||
1 | AAA/AA/A | |||||||
2 | BBB | |||||||
3 | BB | |||||||
4 | B | |||||||
5 | CCC and lower | |||||||
6 | In or near default |
NAIC designation | Amortized cost | Estimated fair value | Percentage of total estimated fair value | |||||||||||||||||
1 | $ | 15,213.8 | $ | 13,011.4 | 64.1 | % | ||||||||||||||
2 | 7,974.8 | 6,692.0 | 32.9 | |||||||||||||||||
Total NAIC 1 and 2 (investment grade) | 23,188.6 | 19,703.4 | 97.0 | |||||||||||||||||
3 | 544.3 | 469.5 | 2.3 | |||||||||||||||||
4 | 139.5 | 122.4 | .6 | |||||||||||||||||
5 | 8.1 | 7.4 | .1 | |||||||||||||||||
6 | 19.0 | 2.5 | — | |||||||||||||||||
Total NAIC 3, 4, 5 and 6 (below-investment grade) | 710.9 | 601.8 | 3.0 | |||||||||||||||||
Total | $ | 23,899.5 | $ | 20,305.2 | 100.0 | % |
NAIC designation | Amortized cost | Estimated fair value | Percentage of total estimated fair value | ||||||||
1 | $ | 9,395.4 | $ | 10,440.6 | 47.2 | % | |||||
2 | 9,779.5 | 10,751.6 | 48.6 | ||||||||
Total NAIC 1 and 2 (investment grade) | 19,174.9 | 21,192.2 | 95.8 | ||||||||
3 | 606.5 | 625.2 | 2.8 | ||||||||
4 | 249.3 | 252.1 | 1.1 | ||||||||
5 | 41.4 | 40.4 | .2 | ||||||||
6 | 20.4 | 20.0 | .1 | ||||||||
Total NAIC 3, 4, 5 and 6 (below-investment grade) | 917.6 | 937.7 | 4.2 | ||||||||
$ | 20,092.5 | $ | 22,129.9 | 100.0 | % |
Carrying value | Percent of fixed maturities | Gross unrealized losses | Percent of gross unrealized losses | ||||||||||||||||||||
States and political subdivisions | $ | 2,306.0 | 11.4 | % | $ | 547.8 | 15.3 | % | |||||||||||||||
Commercial mortgage-backed securities | 2,239.1 | 11.0 | 311.3 | 8.7 | |||||||||||||||||||
Banks | 1,705.8 | 8.4 | 299.3 | 8.4 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | 1,525.2 | 7.5 | 204.3 | 5.7 | |||||||||||||||||||
Asset-backed securities | 1,359.2 | 6.7 | 141.0 | 3.9 | |||||||||||||||||||
Collateralized loan obligations | 1,059.5 | 5.2 | 20.1 | .6 | |||||||||||||||||||
Utilities | 1,024.7 | 5.0 | 219.8 | 6.1 | |||||||||||||||||||
Insurance | 1,024.6 | 5.0 | 256.8 | 7.2 | |||||||||||||||||||
Healthcare/pharmaceuticals | 958.0 | 4.7 | 268.1 | 7.5 | |||||||||||||||||||
Brokerage | 899.3 | 4.4 | 169.4 | 4.7 | |||||||||||||||||||
Technology | 719.0 | 3.5 | 187.9 | 5.3 | |||||||||||||||||||
Agency residential mortgage-backed securities | 615.9 | 3.0 | 12.6 | .4 | |||||||||||||||||||
Food/beverage | 612.0 | 3.0 | 115.7 | 3.2 | |||||||||||||||||||
Energy | 478.6 | 2.4 | 67.5 | 1.9 | |||||||||||||||||||
Cable/media | 426.5 | 2.1 | 101.8 | 2.8 | |||||||||||||||||||
Real estate/REITs | 335.6 | 1.7 | 62.4 | 1.7 | |||||||||||||||||||
Transportation | 320.4 | 1.6 | 55.4 | 1.6 | |||||||||||||||||||
Telecom | 295.5 | 1.5 | 53.1 | 1.5 | |||||||||||||||||||
Capital goods | 254.6 | 1.3 | 50.3 | 1.4 | |||||||||||||||||||
Chemicals | 243.1 | 1.2 | 55.0 | 1.5 | |||||||||||||||||||
Other | 1,902.6 | 9.4 | 380.0 | 10.6 | |||||||||||||||||||
Total fixed maturities, available for sale | $ | 20,305.2 | 100.0 | % | $ | 3,579.6 | 100.0 | % |
Carrying value | Percent of fixed maturities | Gross unrealized losses | Percent of gross unrealized losses | ||||||||||
Asset-backed securities | $ | 2,786.1 | 12.6 | % | $ | 3.1 | 6.2 | % | |||||
States and political subdivisions | 2,077.0 | 9.4 | .9 | 1.9 | |||||||||
Utilities | 1,649.2 | 7.5 | .3 | .5 | |||||||||
Healthcare/pharmaceuticals | 1,636.9 | 7.4 | 1.7 | 3.5 | |||||||||
Insurance | 1,494.4 | 6.8 | 1.1 | 2.3 | |||||||||
Energy | 1,445.6 | 6.5 | 7.8 | 16.3 | |||||||||
Commercial mortgage-backed securities | 1,338.9 | 6.0 | 10.1 | 21.5 | |||||||||
Banks | 1,179.9 | 5.3 | .2 | .4 | |||||||||
Food/beverage | 982.4 | 4.4 | .2 | .4 | |||||||||
Cable/media | 811.0 | 3.7 | 5.6 | 11.8 | |||||||||
Collateralized mortgage obligations | 804.4 | 3.6 | .6 | 1.2 | |||||||||
Real estate/REITs | 550.1 | 2.5 | — | — | |||||||||
Capital goods | 550.0 | 2.5 | .3 | .5 | |||||||||
Chemicals | 520.4 | 2.4 | 2.9 | 6.0 | |||||||||
Transportation | 475.9 | 2.2 | .3 | .7 | |||||||||
Brokerage | 441.6 | 2.0 | 1.2 | 2.6 | |||||||||
Telecom | 342.7 | 1.5 | .4 | .8 | |||||||||
Technology | 320.1 | 1.4 | 1.0 | 2.1 | |||||||||
Aerospace/defense | 295.9 | 1.3 | .2 | .3 | |||||||||
Autos | 287.2 | 1.3 | .5 | 1.1 | |||||||||
Business services | 267.1 | 1.2 | 2.0 | 4.2 | |||||||||
Paper | 261.3 | 1.2 | .1 | .2 | |||||||||
Collateralized debt obligations | 237.9 | 1.1 | — | — | |||||||||
Retail | 227.9 | 1.0 | .5 | 1.1 | |||||||||
Other | 1,146.0 | 5.2 | 6.8 | 14.4 | |||||||||
Total fixed maturities, available for sale | $ | 22,129.9 | 100.0 | % | $ | 47.8 | 100.0 | % |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||
Gross realized gains on sale | $ | 32.3 | $ | 7.3 | $ | 60.4 | $ | 127.1 | |||||||
Gross realized losses on sale | (8.5 | ) | (2.8 | ) | (16.4 | ) | (84.4 | ) | |||||||
Impairments: | |||||||||||||||
Total other-than-temporary impairment losses | (3.2 | ) | — | (10.0 | ) | (6.3 | ) | ||||||||
Other-than-temporary impairment losses recognized in accumulated other comprehensive income | — | — | (.9 | ) | — | ||||||||||
Net impairment losses recognized | (3.2 | ) | — | (10.9 | ) | (6.3 | ) | ||||||||
Net realized investment gains from fixed maturities | 20.6 | 4.5 | 33.1 | 36.4 | |||||||||||
Equity securities | 7.7 | 17.2 | 9.6 | 21.3 | |||||||||||
Commercial mortgage loans | — | — | 1.0 | — | |||||||||||
Impairments of other investments | (1.5 | ) | (1.2 | ) | (7.3 | ) | (18.5 | ) | |||||||
Loss on dissolution of variable interest entities | (.6 | ) | — | (4.3 | ) | (7.3 | ) | ||||||||
Other (a) | 3.0 | (8.9 | ) | 20.2 | (8.6 | ) | |||||||||
Net realized investment gains | $ | 29.2 | $ | 11.6 | $ | 52.3 | $ | 23.3 |
At date of sale | |||||||||||||||||
Number of issuers | Amortized cost | Fair value | |||||||||||||||
Less than 6 months prior to sale | 3 | $ | 45.6 | $ | 24.0 | ||||||||||||
Greater than or equal to 6 months and less than 12 months prior to sale | 1 | 2.6 | .1 | ||||||||||||||
Greater than 12 months prior to sale | 1 | .9 | .2 | ||||||||||||||
$ | 49.1 | $ | 24.3 |
At date of sale | |||||||||
Number of issuers | Amortized cost | Fair value | |||||||
Less than 6 months prior to sale | 4 | $ | 17.8 | $ | 13.0 | ||||
Greater than or equal to 6 months and less than 12 months prior to sale | 1 | 2.7 | 1.9 | ||||||
Greater than 12 months prior to sale | 1 | .7 | .5 | ||||||
6 | $ | 21.2 | $ | 15.4 |
Amortized cost | Estimated fair value | ||||||||||
(Dollars in millions) | |||||||||||
Due in one year or less | $ | 144.5 | $ | 134.3 | |||||||
Due after one year through five years | 2,063.0 | 1,913.0 | |||||||||
Due after five years through ten years | 1,533.3 | 1,351.5 | |||||||||
Due after ten years | 11,962.2 | 9,344.7 | |||||||||
Subtotal | 15,703.0 | 12,743.5 | |||||||||
Structured securities | 6,663.5 | 5,974.0 | |||||||||
Total | $ | 22,366.5 | $ | 18,717.5 |
Amortized cost | Estimated fair value | ||||||
(Dollars in millions) | |||||||
Due in one year or less | $ | 37.1 | $ | 37.1 | |||
Due after one year through five years | 136.5 | 135.4 | |||||
Due after five years through ten years | 135.1 | 132.0 | |||||
Due after ten years | 878.4 | 848.6 | |||||
Subtotal | 1,187.1 | 1,153.1 | |||||
Structured securities | 926.6 | 912.8 | |||||
Total | $ | 2,113.7 | $ | 2,065.9 |
Number of issuers | Cost basis | Unrealized loss | Estimated fair value | |||||||||||||||||||||||
Less than 6 months | 10 | $ | 43.8 | $ | (10.8) | $ | 33.0 | |||||||||||||||||||
Greater than or equal to 6 months and less than 12 months | 3 | 33.7 | (12.2) | 21.5 | ||||||||||||||||||||||
Greater than 12 months | 5 | 40.5 | (14.7) | 25.8 | ||||||||||||||||||||||
Total | $ | 118.0 | $ | (37.7) | $ | 80.3 |
Investment grade | Below-investment grade | ||||||||||||||||||||||||||||
AAA/AA/A | BBB | BB | B+ and below | Total gross unrealized losses | |||||||||||||||||||||||||
States and political subdivisions | $ | 534.8 | $ | 12.2 | $ | — | $ | .8 | $ | 547.8 | |||||||||||||||||||
Commercial mortgage-backed securities | 235.4 | 50.0 | 23.5 | 2.4 | 311.3 | ||||||||||||||||||||||||
Banks | 167.9 | 128.1 | 3.3 | — | 299.3 | ||||||||||||||||||||||||
Healthcare/pharmaceuticals | 177.6 | 86.6 | 2.9 | 1.0 | 268.1 | ||||||||||||||||||||||||
Insurance | 127.9 | 125.0 | 3.5 | .4 | 256.8 | ||||||||||||||||||||||||
Utilities | 126.3 | 91.3 | 2.1 | .1 | 219.8 | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 121.9 | 61.3 | 1.1 | 20.0 | 204.3 | ||||||||||||||||||||||||
Technology | 110.1 | 72.0 | 5.6 | .2 | 187.9 | ||||||||||||||||||||||||
Brokerage | 91.2 | 76.1 | 1.6 | .5 | 169.4 | ||||||||||||||||||||||||
Asset-backed securities | 53.9 | 70.2 | 16.2 | .7 | 141.0 | ||||||||||||||||||||||||
Food/beverage | 36.8 | 77.2 | 1.3 | .4 | 115.7 | ||||||||||||||||||||||||
Cable/media | 15.5 | 79.4 | 4.1 | 2.8 | 101.8 | ||||||||||||||||||||||||
Energy | 13.8 | 53.5 | .2 | — | 67.5 | ||||||||||||||||||||||||
Real estate/REITs | 35.1 | 26.6 | .7 | — | 62.4 | ||||||||||||||||||||||||
Transportation | 21.4 | 33.7 | — | .3 | 55.4 | ||||||||||||||||||||||||
Chemicals | 4.8 | 48.9 | .8 | .5 | 55.0 | ||||||||||||||||||||||||
Telecom | .5 | 52.6 | — | — | 53.1 | ||||||||||||||||||||||||
Capital goods | 23.1 | 24.0 | 3.2 | — | 50.3 | ||||||||||||||||||||||||
Consumer products | 25.3 | 14.8 | 3.6 | 1.0 | 44.7 | ||||||||||||||||||||||||
Retail | 23.8 | 17.3 | 1.7 | 1.7 | 44.5 | ||||||||||||||||||||||||
Autos | 5.9 | 23.7 | 1.5 | — | 31.1 | ||||||||||||||||||||||||
Aerospace/defense | 8.6 | 21.5 | — | .1 | 30.2 | ||||||||||||||||||||||||
Building materials | 5.9 | 23.1 | .4 | .2 | 29.6 | ||||||||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | 28.8 | — | — | — | 28.8 | ||||||||||||||||||||||||
Metals and mining | 8.7 | 13.5 | .7 | — | 22.9 | ||||||||||||||||||||||||
Collateralized loan obligations | 18.4 | 1.7 | — | — | 20.1 | ||||||||||||||||||||||||
Paper | .8 | 17.1 | .1 | .3 | 18.3 | ||||||||||||||||||||||||
Foreign governments | 7.3 | 9.3 | — | — | 16.6 | ||||||||||||||||||||||||
Entertainment/hotels | 8.2 | 4.5 | .6 | — | 13.3 | ||||||||||||||||||||||||
Agency residential mortgage-backed securities | 12.3 | .3 | — | — | 12.6 | ||||||||||||||||||||||||
Business services | — | 2.6 | .7 | .2 | 3.5 | ||||||||||||||||||||||||
Other | 86.8 | 9.0 | .6 | .1 | 96.5 | ||||||||||||||||||||||||
Total fixed maturities, available for sale | $ | 2,138.8 | $ | 1,327.1 | $ | 80.0 | $ | 33.7 | $ | 3,579.6 |
Investment grade | Below-investment grade | ||||||||||||||||||
AAA/AA/A | BBB | BB | B+ and below | Total gross unrealized losses | |||||||||||||||
Commercial mortgage-backed securities | $ | 8.7 | $ | .5 | $ | .9 | $ | — | $ | 10.1 | |||||||||
Energy | .1 | 4.1 | 1.9 | 1.7 | 7.8 | ||||||||||||||
Cable/media | — | 5.4 | .1 | .1 | 5.6 | ||||||||||||||
Asset-backed securities | 1.2 | .7 | .2 | 1.0 | 3.1 | ||||||||||||||
Chemicals | — | .7 | 2.2 | — | 2.9 | ||||||||||||||
Building materials | — | 1.4 | .9 | — | 2.3 | ||||||||||||||
Business services | — | — | 2.0 | — | 2.0 | ||||||||||||||
Healthcare/pharmaceuticals | .1 | .8 | — | .8 | 1.7 | ||||||||||||||
Brokerage | .1 | .5 | — | .6 | 1.2 | ||||||||||||||
Insurance | — | 1.1 | — | — | 1.1 | ||||||||||||||
Technology | — | 1.0 | — | — | 1.0 | ||||||||||||||
States and political subdivisions | .3 | .3 | — | .3 | .9 | ||||||||||||||
Entertainment/hotels | — | .6 | — | .1 | .7 | ||||||||||||||
Collateralized mortgage obligations | .5 | — | — | .1 | .6 | ||||||||||||||
Autos | — | .2 | .3 | — | .5 | ||||||||||||||
Metals and mining | — | — | .5 | — | .5 | ||||||||||||||
Retail | — | .2 | — | .3 | .5 | ||||||||||||||
Telecom | — | .4 | — | — | .4 | ||||||||||||||
Transportation | — | .3 | — | — | .3 | ||||||||||||||
Capital goods | — | .2 | .1 | — | .3 | ||||||||||||||
Utilities | .2 | — | — | .1 | .3 | ||||||||||||||
Food/beverage | — | .1 | — | .1 | .2 | ||||||||||||||
Banks | .1 | .1 | — | — | .2 | ||||||||||||||
Aerospace/defense | .2 | — | — | — | .2 | ||||||||||||||
Paper | — | .1 | — | — | .1 | ||||||||||||||
Consumer products | — | — | — | .1 | .1 | ||||||||||||||
Debt securities issued by foreign governments | — | .1 | — | — | .1 | ||||||||||||||
Other | 2.2 | .1 | .7 | .1 | 3.1 | ||||||||||||||
Total fixed maturities, available for sale | $ | 13.7 | $ | 18.9 | $ | 9.8 | $ | 5.4 | $ | 47.8 |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Description of securities | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||
United States Treasury securities and obligations of United States government corporations and agencies | $ | 20.3 | $ | — | $ | .6 | $ | — | $ | 20.9 | $ | — | ||||||||||||
States and political subdivisions | 35.1 | (.6 | ) | 19.3 | (.3 | ) | 54.4 | (.9 | ) | |||||||||||||||
Debt securities issued by foreign governments | 10.5 | (.1 | ) | — | — | 10.5 | (.1 | ) | ||||||||||||||||
Corporate securities | 666.9 | (7.8 | ) | 400.4 | (25.2 | ) | 1,067.3 | (33.0 | ) | |||||||||||||||
Asset-backed securities | 276.7 | (1.3 | ) | 79.6 | (1.8 | ) | 356.3 | (3.1 | ) | |||||||||||||||
Collateralized debt obligations | 24.0 | — | — | — | 24.0 | — | ||||||||||||||||||
Commercial mortgage-backed securities | 226.2 | (1.3 | ) | 221.9 | (8.8 | ) | 448.1 | (10.1 | ) | |||||||||||||||
Collateralized mortgage obligations | 72.8 | (.5 | ) | 11.6 | (.1 | ) | 84.4 | (.6 | ) | |||||||||||||||
Total fixed maturities, available for sale | $ | 1,332.5 | $ | (11.6 | ) | $ | 733.4 | $ | (36.2 | ) | $ | 2,065.9 | $ | (47.8 | ) | |||||||||
Equity securities | $ | 37.4 | $ | (.8 | ) | $ | 89.7 | $ | (1.8 | ) | $ | 127.1 | $ | (2.6 | ) |
Par value | Amortized cost | Estimated fair value | |||||||||
Below 4 percent | $ | 1,755.8 | $ | 1,591.9 | $ | 1,669.1 | |||||
4 percent – 5 percent | 1,697.1 | 1,552.6 | 1,634.7 | ||||||||
5 percent – 6 percent | 1,419.5 | 1,278.4 | 1,372.6 | ||||||||
6 percent – 7 percent | 261.5 | 233.9 | 251.4 | ||||||||
7 percent – 8 percent | 58.9 | 59.7 | 69.3 | ||||||||
8 percent and above | 170.2 | 169.9 | 172.4 | ||||||||
Total structured securities | $ | 5,363.0 | $ | 4,886.4 | $ | 5,169.5 |
Estimated fair value | |||||||||||||||||
Type | Amortized cost | Amount | Percent of fixed maturities | ||||||||||||||
Asset-backed securities | $ | 1,500.2 | $ | 1,359.2 | 6.7 | % | |||||||||||
Agency residential mortgage-backed securities | 627.9 | 615.9 | 3.1 | ||||||||||||||
Non-agency residential mortgage-backed securities | 1,695.8 | 1,525.2 | 7.5 | ||||||||||||||
Collateralized loan obligations | 1,077.7 | 1,059.5 | 5.2 | ||||||||||||||
Commercial mortgage-backed securities | 2,549.8 | 2,239.1 | 11.0 | ||||||||||||||
Total structured securities | $ | 7,451.4 | $ | 6,798.9 | 33.5 | % |
Estimated fair value | ||||||||||
Type | Amortized cost | Amount | Percent of fixed maturities | |||||||
Pass-throughs, sequential and equivalent securities | $ | 585.9 | $ | 647.1 | 2.9 | % | ||||
Planned amortization classes, target amortization classes and accretion-directed bonds | 100.5 | 114.8 | .5 | |||||||
Commercial mortgage-backed securities | 1,311.6 | 1,338.9 | 6.1 | |||||||
Asset-backed securities | 2,608.6 | 2,786.1 | 12.6 | |||||||
Collateralized debt obligations | 236.5 | 237.9 | 1.1 | |||||||
Other | 43.3 | 44.7 | .2 | |||||||
Total structured securities | $ | 4,886.4 | $ | 5,169.5 | 23.4 | % |
Estimated fair value | |||||||||||
Loan-to-value ratio (a) | Carrying value | Mortgage loans | Collateral | ||||||||
Less than 60% | $ | 983.5 | $ | 1,007.0 | $ | 2,463.3 | |||||
60% to 70% | 406.8 | 409.5 | 621.4 | ||||||||
Greater than 70% to 80% | 186.1 | 195.8 | 254.4 | ||||||||
Greater than 80% to 90% | 37.4 | 38.5 | 43.3 | ||||||||
Greater than 90% | 54.0 | 55.0 | 57.4 | ||||||||
Total | $ | 1,667.8 | $ | 1,705.8 | $ | 3,439.8 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Net investment income – policyholder and other special-purpose portfolios | $ | 21.3 | $ | 16.0 | $ | 65.7 | $ | 39.6 | |||||||||||||||
Fee revenue and other income | 1.0 | 1.4 | 3.5 | 3.9 | |||||||||||||||||||
Total revenues | 22.3 | 17.4 | 69.2 | 43.5 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Interest expense | 17.5 | 11.7 | 52.6 | 24.9 | |||||||||||||||||||
Other operating expenses | .3 | .2 | 1.4 | 1.3 | |||||||||||||||||||
Total expenses | 17.8 | 11.9 | 54.0 | 26.2 | |||||||||||||||||||
Income before net investment gains (losses) and income taxes | 4.5 | 5.5 | 15.2 | 17.3 | |||||||||||||||||||
Net investment gains (losses) | (.2) | 3.5 | (4.2) | (6.7) | |||||||||||||||||||
Income before income taxes | $ | 4.3 | $ | 9.0 | $ | 11.0 | $ | 10.6 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Net investment income – policyholder and other special-purpose portfolios | $ | 16.1 | $ | 21.2 | $ | 53.0 | $ | 58.9 | |||||||
Fee revenue and other income | 1.2 | 1.8 | 4.0 | 4.8 | |||||||||||
Total revenues | 17.3 | 23.0 | 57.0 | 63.7 | |||||||||||
Expenses: | |||||||||||||||
Interest expense | 11.1 | 13.4 | 38.0 | 39.4 | |||||||||||
Other operating expenses | .4 | .3 | 1.3 | 1.1 | |||||||||||
Total expenses | 11.5 | 13.7 | 39.3 | 40.5 | |||||||||||
Income before net realized investment losses, loss on extinguishment of borrowings and income taxes | 5.8 | 9.3 | 17.7 | 23.2 | |||||||||||
Net realized investment losses | (.7 | ) | (6.9 | ) | (2.5 | ) | (20.6 | ) | |||||||
Loss on extinguishment of borrowings | (5.5 | ) | — | (5.5 | ) | — | |||||||||
Income before income taxes | $ | (.4 | ) | $ | 2.4 | $ | 9.7 | $ | 2.6 |
Carrying value | Percent of fixed maturities | Gross unrealized losses | Percent of gross unrealized losses | ||||||||||||||||||||||||||
Cable/media | $ | 111.3 | 13.0 | % | $ | 4.2 | 19.7 | % | |||||||||||||||||||||
Healthcare/pharmaceuticals | 105.1 | 12.2 | 3.7 | 17.3 | |||||||||||||||||||||||||
Technology | 104.5 | 12.2 | 5.2 | 24.4 | |||||||||||||||||||||||||
Food/beverage | 57.8 | 6.7 | 1.7 | 7.7 | |||||||||||||||||||||||||
Brokerage | 51.3 | 6.0 | .4 | 1.6 | |||||||||||||||||||||||||
Chemicals | 45.1 | 5.3 | .3 | 1.5 | |||||||||||||||||||||||||
Building materials | 44.8 | 5.2 | .5 | 2.2 | |||||||||||||||||||||||||
Transportation | 41.2 | 4.8 | .3 | 1.3 | |||||||||||||||||||||||||
Paper | 37.7 | 4.4 | .3 | 1.4 | |||||||||||||||||||||||||
Utilities | 36.4 | 4.2 | .3 | 1.4 | |||||||||||||||||||||||||
Capital goods | 34.8 | 4.1 | .6 | 2.9 | |||||||||||||||||||||||||
Consumer products | 29.1 | 3.4 | .9 | 4.0 | |||||||||||||||||||||||||
Autos | 28.1 | 3.3 | .1 | .3 | |||||||||||||||||||||||||
Insurance | 26.4 | 3.1 | .1 | .5 | |||||||||||||||||||||||||
Business services | 26.1 | 3.0 | .3 | 1.3 | |||||||||||||||||||||||||
Banks | 16.6 | 1.9 | .1 | .3 | |||||||||||||||||||||||||
Aerospace/defense | 11.9 | 1.4 | .1 | .6 | |||||||||||||||||||||||||
Other | 49.9 | 5.8 | 2.4 | 11.6 | |||||||||||||||||||||||||
Total | $ | 858.1 | 100.0 | % | $ | 21.5 | 100.0 | % |
Carrying value | Percent of fixed maturities | Gross unrealized losses | Percent of gross unrealized losses | ||||||||||
Healthcare/pharmaceuticals | $ | 169.0 | 12.2 | % | $ | .1 | 1.8 | % | |||||
Cable/media | 155.0 | 11.2 | 1.7 | 21.6 | |||||||||
Technology | 147.3 | 10.6 | .6 | 8.3 | |||||||||
Food/beverage | 96.2 | 6.9 | .8 | 10.8 | |||||||||
Capital goods | 83.3 | 6.0 | .3 | 3.3 | |||||||||
Consumer products | 67.4 | 4.9 | .5 | 6.8 | |||||||||
Paper | 64.7 | 4.7 | .1 | 1.3 | |||||||||
Aerospace/defense | 62.1 | 4.5 | .3 | 4.0 | |||||||||
Brokerage | 61.0 | 4.4 | .1 | .7 | |||||||||
Building materials | 56.5 | 4.1 | .1 | .9 | |||||||||
Retail | 53.3 | 3.9 | 2.4 | 31.6 | |||||||||
Chemicals | 46.5 | 3.4 | .1 | .9 | |||||||||
Utilities | 39.5 | 2.9 | — | .3 | |||||||||
Autos | 31.1 | 2.3 | — | .1 | |||||||||
Gaming | 29.5 | 2.1 | — | .5 | |||||||||
Entertainment/hotels | 27.9 | 2.0 | .1 | .6 | |||||||||
Transportation | 27.6 | 2.0 | .1 | 1.8 | |||||||||
Insurance | 21.1 | 1.5 | — | — | |||||||||
Banks | 17.1 | 1.2 | — | .3 | |||||||||
Real estate/REITs | 15.9 | 1.2 | — | .1 | |||||||||
Metals and mining | 12.2 | .9 | — | — | |||||||||
Business services | 8.5 | .6 | — | .3 | |||||||||
Telecom | 7.6 | .5 | — | .2 | |||||||||
Energy | 2.9 | .2 | — | — | |||||||||
Textiles | .8 | .1 | — | — | |||||||||
Other | 78.5 | 5.7 | .3 | 3.8 | |||||||||
Total | $ | 1,382.5 | 100.0 | % | $ | 7.6 | 100.0 | % |
Amortized cost | Estimated fair value | ||||||||||
(Dollars in millions) | |||||||||||
Due in one year or less | $ | 4.2 | $ | 3.4 | |||||||
Due after one year through five years | 583.7 | 562.3 | |||||||||
Due after five years through ten years | 79.3 | 77.1 | |||||||||
Total | $ | 667.2 | $ | 642.8 |
Amortized cost | Estimated fair value | ||||||
(Dollars in millions) | |||||||
Due in one year or less | $ | 1.7 | $ | 1.7 | |||
Due after one year through five years | 154.7 | 151.6 | |||||
Due after five years through ten years | 244.7 | 240.2 | |||||
Total | $ | 401.1 | $ | 393.5 |
At date of sale | |||||||||||||||||
Number of issuers | Amortized cost | Fair value | |||||||||||||||
Less than 6 months prior to sale | 3 | $ | 3.7 | $ | 2.6 | ||||||||||||
Greater than or equal to 6 months and less than 12 months prior to sale | 2 | 4.9 | 1.8 | ||||||||||||||
Greater than 12 months prior to sale | 1 | 3.5 | 1.0 | ||||||||||||||
$ | 12.1 | $ | 5.4 |
At date of sale | |||||||||
Number of issuers | Amortized cost | Fair value | |||||||
Less than 6 months prior to sale | 2 | $ | 2.8 | $ | 1.8 |
Number of issuers | Cost basis | Unrealized loss | Estimated fair value | |||||||||||||||||||||||
Less than 6 months | 1 | $ | 4.3 | $ | (1.3) | $ | 3.0 | |||||||||||||||||||
Greater than or equal to 6 months and less than 12 months | 1 | 2.7 | (1.1) | 1.6 | ||||||||||||||||||||||
Greater than 12 months | 1 | 1.9 | (.4) | 1.5 | ||||||||||||||||||||||
Total | $ | 8.9 | $ | (2.8) | $ | 6.1 |
Number of issuers | Cost basis | Unrealized loss | Estimated fair value | ||||||||||
Less than 6 months | 1 | $ | 5.4 | $ | (1.2 | ) | $ | 4.2 |
Period | Total number of shares (or units) | Average price paid per share (or unit) | Total number of shares (or units) purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (a) | ||||||||||||||||||||||||||||||||||||
Period (in 2023) | Period (in 2023) | Total number of shares (or units) purchased | Average price paid per share (or unit) | Total number of shares (or units) purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (a) | |||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||||||||||||||||
July 1 through July 31 | 1,137 | $ | 22.69 | — | $ | 440.8 | July 1 through July 31 | 845,817 | $ | 24.61 | 845,256 | $ | 621.0 | |||||||||||||||||||||||||||
August 1 through August 31 | 391,512 | 22.36 | 391,400 | 432.0 | August 1 through August 31 | 478,037 | 24.12 | 475,563 | 609.5 | |||||||||||||||||||||||||||||||
September 1 through September 30 | 880,895 | 22.12 | 880,589 | 412.6 | September 1 through September 30 | 324,918 | 23.67 | 324,854 | 601.8 | |||||||||||||||||||||||||||||||
Total | 1,273,544 | 22.19 | 1,271,989 | 412.6 | Total | 1,648,772 | 24.28 | 1,645,673 | 601.8 |
(a) The Company's Board of Directors has authorized additional repurchases from time to time, most recently in May 2023 when it authorized the repurchase of an additional $500.0 million |
Name and title of officer | Date of trading arrangement | Duration of trading arrangement (a) | Aggregate shares of common stock to be sold pursuant to the trading arrangement | |||||||||||||||||
John R. Kline | August 17, 2023 | March 29, 2024 | 21,642 | |||||||||||||||||
–Senior Vice President and Chief Accounting Officer | ||||||||||||||||||||
Jeanne L. Linnenbringer | August 29, 2023 | May 28, 2024 | 4,000 | |||||||||||||||||
–Chief Operations Officer |
3.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | XBRL Instance | ||||
101.SCH | XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
By: | /s/ John R. Kline | |||||||
John R. Kline | ||||||||
Senior Vice President and Chief Accounting Officer | ||||||||
(authorized officer and principal accounting officer) |