Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-10890 | ||
Entity Registrant Name | HORACE MANN EDUCATORS CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 37-0911756 | ||
Entity Address, Address Line One | 1 Horace Mann Plaza | ||
Entity Address, City or Town | Springfield | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 62715-0001 | ||
City Area Code | 217 | ||
Local Phone Number | 789-2500 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | HMN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,167.8 | ||
Entity Common Stock, Shares Outstanding | 40,878,764 | ||
Documents Incorporated by Reference | Certain portions of the registrant's Proxy Statement for the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III Items 10, 11, 12, 13 and 14 of this Form 10-K as specified in those Items and will be filed with the Securities and Exchange Commission within 120 days after December 31, 2023. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000850141 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Chicago, IL |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Investments | |||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | $ 5,235.3 | $ 5,185 | [1] |
Equity securities at fair value, (cost $86.2 and $99.6) | 86.2 | 99.6 | [1] |
Limited partnership interests | 1,138.8 | 983.7 | [1] |
Policy loans | 141.4 | 139.3 | [1] |
Short-term and other investments | 228.8 | 180 | [1] |
Total investments | 6,830.5 | 6,587.6 | [1] |
Cash | 29.7 | 42.8 | [1],[2] |
Deferred policy acquisition costs | 336.3 | 330.6 | [1] |
Reinsurance balances receivable | 480.5 | 468 | [1] |
Deposit asset on reinsurance | 2,496.6 | 2,516.6 | [1] |
Intangible assets | 170.3 | 185.2 | [1] |
Goodwill | 54.3 | 54.3 | [1] |
Other assets | 357.6 | 328.7 | [1] |
Separate Account variable annuity assets | 3,294.1 | 2,792.3 | [1] |
Total assets | 14,049.9 | 13,306.1 | [1] |
Policy liabilities | |||
Future policy benefit reserves | 1,761.8 | 1,718 | [1] |
Policyholders' account balances | 5,187 | 5,260.6 | [1] |
Unpaid claims and claim expenses | 581.7 | 564 | [1] |
Unearned premiums | 300.9 | 266.1 | [1] |
Total policy liabilities | 7,831.4 | 7,808.7 | [1] |
Other policyholder funds | 916 | 809.3 | [1] |
Other liabilities | 287.1 | 299.5 | [1] |
Short-term debt | 0 | 249 | [1] |
Long-term debt | 546 | 249 | [1] |
Separate Account variable annuity liabilities | 3,294.1 | 2,792.3 | [1] |
Total liabilities | 12,874.6 | 12,207.8 | [1] |
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | 0 | [1] |
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 | 0.1 | 0.1 | [1] |
Additional paid-in capital | 510.9 | 502.6 | [1] |
Retained earnings | 1,502.2 | 1,512.4 | [1] |
Accumulated other comprehensive income (loss), net of tax: | |||
Net unrealized investment losses on fixed maturity securities | (328.3) | (449.6) | [1] |
Net reserve remeasurements attributable to discount rates | 21.9 | 59 | [1] |
Net funded status of benefit plans | (7.6) | (8.8) | [1] |
Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares | (523.9) | (517.4) | [1] |
Total shareholders' equity | 1,175.3 | 1,098.3 | [3] |
Total liabilities and shareholders' equity | $ 14,049.9 | $ 13,306.1 | [1] |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 5,652.9 | $ 5,756.9 |
Equity securities at cost | $ 86.2 | $ 99.6 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 66,747,821 | 66,618,465 |
Treasury stock (in shares) | 25,911,087 | 25,714,153 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | [1] | Dec. 31, 2021 | [1] | |
Revenues | |||||||||||||
Net premiums and contract charges earned | $ 1,057.1 | $ 1,027.7 | $ 888.8 | ||||||||||
Net investment income | 444.8 | 400.9 | 422.5 | ||||||||||
Net investment losses | (24) | (56.5) | (11) | ||||||||||
Other income | 14 | 9.5 | 29 | ||||||||||
Total revenues | $ 346.4 | $ 342.6 | $ 345.9 | $ 346.7 | $ 331.2 | $ 329.4 | $ 346.9 | $ 321.7 | 1,491.9 | 1,381.6 | 1,329.3 | ||
Benefits, losses and expenses | |||||||||||||
Benefits, claims and settlement expenses | 769.1 | 747 | 590.7 | ||||||||||
Interest credited | 205.7 | 173.4 | 160 | ||||||||||
Operating expenses | 318.1 | 315.5 | 251 | ||||||||||
DAC amortization expense | 101.2 | 88.2 | 90.6 | ||||||||||
Intangible asset amortization expense | 14.8 | 16.8 | 13 | ||||||||||
Interest expense | 29.7 | 19.4 | 13.9 | ||||||||||
Other expense - goodwill and intangible asset impairments | 0 | 4.8 | [2] | 0 | [2] | ||||||||
Total benefits, losses and expenses | 1,438.6 | 1,365.1 | 1,119.2 | ||||||||||
Income before income taxes | 53.3 | 16.5 | 210.1 | ||||||||||
Income tax expense | 8.3 | (3.3) | 39.7 | ||||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [2] | $ 170.4 | [2] |
Net income per share | |||||||||||||
Basic (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.12 | $ 0.48 | $ 1.29 | $ 1.17 | $ 1.09 | $ 0.48 | $ 4.06 | ||
Diluted (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.11 | $ 0.48 | $ 1.29 | $ 1.16 | $ 1.09 | $ 0.47 | $ 4.04 | ||
Weighted average number of shares and equivalent shares | |||||||||||||
Basic (in shares) | 41.4 | 41.4 | 41.8 | 41.9 | 42 | 42 | 42 | 41.9 | 41.3 | 41.6 | 42 | ||
Diluted (in shares) | 41.4 | 41.6 | 41.8 | 42.1 | 42.2 | 42.2 | 42.2 | 42.1 | 41.4 | 41.8 | 42.2 | ||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [2] | $ 170.4 | [2] |
Other comprehensive income (loss), net of tax: | |||||||||||||
Effect of adopting ASU 2018-12 | 0 | 0 | (426.6) | ||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | 121.3 | (796.7) | (90.3) | ||||||||||
Change in net reserve remeasurements attributable to discount rates | (37.1) | 445.9 | 110.8 | ||||||||||
Change in net funded status of benefit plans | 1.2 | 1.4 | 1 | ||||||||||
Other comprehensive income (loss) | 85.4 | (349.4) | (405.1) | ||||||||||
Total comprehensive income (loss) | $ 130.4 | $ (329.6) | $ (234.7) | ||||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Retained earnings Effect of adopting ASU 2018-12 | [2] | Accumulated other comprehensive income (loss), net of tax: | Accumulated other comprehensive income (loss), net of tax: Effect of adopting ASU 2018-12 | Treasury stock, at cost | ||||
Beginning balance at Dec. 31, 2020 | [1] | $ 0.1 | $ 488.3 | $ 1,434.6 | $ (5.5) | $ 355.1 | $ (426.6) | $ (488.1) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Options exercised and conversion of common stock units and restricted stock units | [1] | (0.7) | |||||||||||
Share-based compensation expense | [1] | 7.7 | |||||||||||
Net income | $ 170.4 | [3],[4] | 170.4 | [1] | |||||||||
Dividends, 2023, $1.32 per share; 2022, $1.28 per share; 2021, $1.24 per share | [1] | (52.5) | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (90.3) | [3] | (90.3) | [1] | |||||||||
Change in net reserve remeasurements attributable to discount rates | 110.8 | [3] | 110.8 | [1] | |||||||||
Change in net funded status of benefit plans | 1 | [3] | 1 | [1] | |||||||||
Treasury stock acquired - share repurchase authorization | [1] | (5.3) | |||||||||||
Ending balance at Dec. 31, 2021 | [1] | 1,499 | 0.1 | 495.3 | 1,547 | $ (0.7) | (50) | (493.4) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Options exercised and conversion of common stock units and restricted stock units | [1] | (0.9) | |||||||||||
Share-based compensation expense | [1] | 8.2 | |||||||||||
Net income | 19.8 | [3],[4] | 19.8 | [1] | |||||||||
Dividends, 2023, $1.32 per share; 2022, $1.28 per share; 2021, $1.24 per share | [1] | (53.7) | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (796.7) | [3] | (796.7) | [1] | |||||||||
Change in net reserve remeasurements attributable to discount rates | 445.9 | [3] | 445.9 | [1] | |||||||||
Change in net funded status of benefit plans | 1.4 | [3] | 1.4 | [1] | |||||||||
Treasury stock acquired - share repurchase authorization | [1] | (24) | |||||||||||
Ending balance at Dec. 31, 2022 | [1] | 1,098.3 | 0.1 | 502.6 | 1,512.4 | (399.4) | (517.4) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Options exercised and conversion of common stock units and restricted stock units | (0.5) | ||||||||||||
Share-based compensation expense | 8.8 | ||||||||||||
Net income | 45 | 45 | |||||||||||
Dividends, 2023, $1.32 per share; 2022, $1.28 per share; 2021, $1.24 per share | (55.2) | ||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | 121.3 | 121.3 | |||||||||||
Change in net reserve remeasurements attributable to discount rates | (37.1) | (37.1) | |||||||||||
Change in net funded status of benefit plans | 1.2 | 1.2 | |||||||||||
Treasury stock acquired - share repurchase authorization | (6.5) | ||||||||||||
Ending balance at Dec. 31, 2023 | $ 1,175.3 | $ 0.1 | $ 510.9 | $ 1,502.2 | $ (314) | $ (523.9) | |||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements (1) Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Cash dividends (in usd per share) | $ 1.32 | $ 1.28 | $ 1.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||
Cash flows - operating activities | |||||||
Net income | $ 45 | $ 19.8 | [1],[2] | $ 170.4 | [1],[2] | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Net investment losses | 24 | 56.5 | [2] | 11 | [2] | ||
Depreciation and intangible asset amortization | 26.2 | 27.6 | [2] | 18.4 | [2] | ||
Share-based compensation expense | 9.5 | 8.9 | [2] | 8.4 | [2] | ||
Loss (gain) from equity method investments, net of dividends or distributions | (14.5) | 18.2 | [2] | (41.5) | [2] | ||
Other expense - goodwill impairments | 0 | 4.8 | [1],[2] | 0 | [1],[2] | ||
Changes in: | |||||||
Insurance liabilities | 186.7 | 334.2 | [2] | 114.5 | [2] | ||
Amounts due under reinsurance agreements | (12.5) | (309.8) | [2] | 7.4 | [2] | ||
Income tax liabilities | (15) | 110.5 | [2] | (91.2) | [2] | ||
Other operating assets and liabilities | 53.9 | (109.4) | [2] | 4.5 | [2] | ||
Other, net | (1.2) | 10.2 | [2] | 3 | [2] | ||
Net cash provided by operating activities | 302.1 | 171.5 | [2] | 204.9 | [2] | ||
Cash flows - investing activities | |||||||
Fixed maturity securities purchases | (596.7) | (1,046.4) | [2] | (1,459) | [2] | ||
Fixed maturity securities sales | 377.6 | 752 | [2] | 578.2 | [2] | ||
Fixed maturity securities maturities, paydowns, calls and redemptions | 291.9 | 496.8 | [2] | 873.3 | [2] | ||
Equity securities purchases | (2.5) | (5.2) | [2] | (46.1) | [2] | ||
Equity securities sales and repayments | 18.7 | 12 | [2] | 4.7 | [2] | ||
Limited partnership interests purchases | (207.2) | (356.4) | [2] | (320.6) | [2] | ||
Limited partnership interests sales | 41.4 | 66.6 | [2] | 86.5 | [2] | ||
Change in short-term and other investments, net | (39.8) | 40 | [2] | (8.8) | [2] | ||
Acquisition of business, net of cash acquired | 0 | (164.4) | [2] | 0 | [2] | ||
Other, net | 9.2 | (9.6) | (10.2) | ||||
Net cash used in investing activities | (107.4) | (214.6) | [2] | (302) | [2] | ||
Cash flows - financing activities | |||||||
Dividends paid to shareholders | (53.9) | (52.6) | [2] | (51.4) | [2] | ||
Proceeds from issuance of 2023 Senior Notes due 2028 | 297.7 | 0 | [2] | 0 | [2] | ||
Principal borrowings on Revolving Credit Facility | 0 | 0 | [2] | 114 | [2] | ||
FHLB borrowings | 0 | 0 | 5 | ||||
Principal repayment on Revolving Credit Facility | (249) | 0 | 0 | ||||
Principal repayment on FHLB borrowings | 0 | (5) | [2] | (54) | [2] | ||
Treasury stock acquired | (6.5) | (24) | [2] | (5.3) | [2] | ||
Withholding tax payments on RSUs tendered | (1.8) | (2.4) | [2] | (2) | [2] | ||
Annuity contracts: variable, fixed and FHLB funding agreements | |||||||
Deposits | 787.6 | 636.5 | [2] | 1,060.4 | [2] | ||
Benefits, withdrawals and net transfers to Separate Account variable annuity assets | (604.7) | (472.2) | [2] | (462.7) | [2] | ||
Repayment of FHLB funding agreements | (189.5) | (149) | [2] | (362) | [2] | ||
Life policy accounts deposits, withdrawals, and surrenders | 8.6 | 7.8 | [2] | 5.1 | [2] | ||
Change in deposit asset on reinsurance | (123.6) | (67) | [2] | (39.2) | [2] | ||
Net increase (decrease) in reverse repurchase agreements | (70.2) | 70.2 | [2] | 0 | [2] | ||
Change in book overdrafts | (2.5) | 9.9 | [2] | 0.3 | [2] | ||
Net cash provided by (used in) financing activities | (207.8) | (47.8) | [2] | 208.5 | [2] | ||
Net increase (decrease) in cash | (13.1) | (90.9) | [2] | 111.4 | [2] | ||
Cash at beginning of year | [2] | 42.8 | [3] | 133.7 | 22.3 | ||
Cash at end of year | $ 29.7 | $ 42.8 | [2],[3] | $ 133.7 | [2] | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Business Horace Mann Educators Corporation is a holding company for insurance subsidiaries that market and underwrite personal lines of property and casualty insurance products (primarily personal lines of auto and property insurance), life insurance products, retirement products (primarily tax-qualified fixed and variable annuities), worksite direct insurance products (primarily cancer, heart, hospital, supplemental disability and accident coverages), and employer-sponsored group benefit products (primarily short-term and long-term group disability, and group term life coverages), primarily to K-12 teachers, administrators and other employees of public schools and their families (collectively, HMEC, the Company or Horace Mann). The Company conducts and manages its business in four reporting segments: (1) Property & Casualty, (2) Life & Retirement, (3) Supplemental & Group Benefits and (4) Corporate & Other. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC). The Company adopted ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts effective January 1, 2023, on a modified retrospective basis. Prior year balances were recast in this Annual Report on Form 10-K to conform to ASU 2018-12 on January 1, 2021. For further details, see Note 1 - Recent Adoption of New Accounting Standards, Note 6 - Long-Duration Contracts, and Note 18 - Prior Period Consolidated Financial Statements. The Company has reclassified the presentation of certain prior period information to conform to the current year's presentation. Consolidation All intercompany transactions and balances between HMEC and its subsidiaries and affiliates have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The most significant critical accounting estimates include valuation of hard-to-value fixed maturity securities, evaluation of credit loss impairments for fixed maturity securities, valuation of future policy benefit reserves, and valuation of liabilities for property and casualty unpaid claims and claim expense reserves. Investments Fixed Maturity Securities The Company invests predominantly in fixed maturity securities. Fixed maturity securities include bonds, asset-backed securities (ABS), mortgage-backed securities (MBS), other structured securities and redeemable preferred stocks. MBS includes residential and commercial mortgage-backed securities. Fixed maturity securities, which may be sold prior to their contractual maturity, are designated as available for sale (AFS) and are carried at fair value of which a portion represent securities that are hard-to-value. See Note 3 – Fair Value of Financial Instruments – Investments for a detailed description of how the Company estimates fair value for its fixed maturity securities portfolio including hard-to-value securities. An adjustment for net unrealized investment gains (losses) on all fixed maturity securities available for sale and carried at fair value, is recognized as a separate component of accumulated other comprehensive income (loss) (i.e., AOCI) within shareholders’ equity, net of applicable deferred taxes. The Company excludes accrued interest receivable from the amortized cost basis of its AFS fixed maturity securities. Equity Securities Equity securities primarily include common stocks, exchange traded and mutual funds and non-redeemable preferred stocks. Certain exchange traded and mutual funds have fixed maturity securities as their underlying investments. Equity securities are carried at fair value and have readily determinable fair values. Limited Partnership Interests Investments in limited partnership interests are accounted for using the equity method of accounting (EMA) and include interests in commercial mortgage loan funds, private equity funds, infrastructure equity funds, real estate equity funds, infrastructure debt funds and other funds. Policy Loans Policy loans are carried at unpaid principal balances. Short-Term and Other Investments Short-term investments, including money market funds, commercial paper, U.S. Treasury bills and other short-term investments, are carried at amortized cost, which approximates fair value. Other investments primarily consist of Federal Home Loan Bank of Chicago (FHLB) common stock, mortgage loans and derivatives. FHLB common stock is carried at cost. Mortgage loans are carried at amortized cost, net, which represent the amount expected to be collected. Derivatives are carried at fair value. Variable Interest Entities (VIEs) The Company invests in fixed maturity securities and alternative investment funds that could qualify as variable interests in VIEs. Such variable interests in VIEs have been reviewed and the Company determined that those VIEs are not subject to consolidation as the Company is not the primary beneficiary because it does not have the power to direct the activities that most significantly impact those VIEs' economic performance. Net Investment Income Net investment income primarily consists of interest, dividends and income from limited partnership interests. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. ABS and MBS interest income is determined considering estimated pay-downs, including prepayments, obtained from third-party data sources and internal estimates. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS and MBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is generally recalculated on a prospective basis. Net investment income for AFS fixed maturity securities includes the impact of accreting the credit loss allowance for the time value of money. Accrual of income is suspended for fixed maturity securities when the timing and amount of cash flows expected to be received is not reasonably estimable. Accrual of income is suspended for commercial mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued investment income receivables are monitored for recoverability and when not expected to be collected, are written-off through net investment income. Cash receipts on investments on non-accrual status are generally recorded as a reduction of amortized cost or principal. Income from limited partnership interests is recognized based upon the changes in fair value of the investee’s equity primarily determined using its net asset value and is generally recognized on a three month delay due to the availability of the related financial statements of the investee. The Company reports accrued investment income within other assets in the Consolidated Balance Sheets separately from AFS fixed maturity securities and has elected not to measure an allowance for credit losses for accrued investment income. Accrued investment income is written-off and recognized as a net investment loss at the time the issuer of the security defaults or is expected to default on payments. Net Investment Gains (Losses) Net investment gains (losses) include gains and losses on investment sales, changes in the credit loss allowances related to fixed maturity securities and mortgage loans, impairments, valuation changes of equity securities and periodic changes in fair value and settlements of derivatives. Net investment gains (losses) on investment sales are determined on a specific identification basis and are net of credit losses already recognized through an allowance. Credit Loss Impairments for Fixed Maturity Securities For fixed maturity securities classified as available for sale, the difference between amortized cost, net of a credit loss allowance (i.e., amortized cost, net) and fair value, net of certain other items and deferred income taxes (as disclosed in Part II - Item 8, Note 3 of the Consolidated Financial Statements in this Annual Report on Form 10-K) is reported as a component of accumulated other comprehensive income (loss) (i.e., AOCI) on the Consolidated Balance Sheets and is not reflected in the operating results of any period until reclassified to net income upon the consummation of a transaction with an unrelated third party or when a credit loss allowance transaction is recorded. We evaluate fixed maturity securities where fair value is below amortized cost on a quarterly basis to determined if a credit loss allowance is necessary. These reviews, in conjunction with our investment managers’ quarterly credit reports and relevant factors such as (1) has the security missed any scheduled principal or interest payments in the current quarter; (2) has the security been downgraded to below investment grade by rating agencies or if the security was below investment grade at time of purchase, has the security been downgraded by two or more notches since acquisition; (3) has the security declined in value by more than 10% compared to the prior quarter; (4) has the market yield changed by more than 50 basis points; are all considered in the impairment assessment process. For each fixed maturity security where fair value is below amortized cost, we assess whether management with the appropriate authority has made the decision to sell or whether it is more likely than not we will be required to sell the security before the anticipated recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance is written-off and the amortized cost basis of the security is written down to the fair value, with the losses recorded as a net investment loss. If we have not made the decision to sell the fixed maturity security and it is not more likely than not we will be required to sell the fixed maturity security before the anticipated recovery of its amortized cost basis, we evaluate whether we expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. We estimate the anticipated recovery based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s effective interest rate and are compared to the amortized cost basis of the security. The determination of whether we expect to received cash flow sufficient to recover the entire amortized cost basis of the security is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security. Our investment managers will calculate the anticipated recovery value of the security by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security at the time of purchase for fixed-rate securities. We will then review the assumptions/methodologies for reasonableness. The information reviewed generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, and the value of underlying collateral. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed maturity securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. If we do not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed maturity security, a credit loss allowance is recorded as a net investment loss for the shortfall in expected cash flows; however, the amortized cost basis, net of the credit loss allowance, may not be lower than the fair value of the security. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If we determine that the fixed maturity security does not have sufficient cash flows or other information to estimate the anticipated recovery value for the security, we may conclude that the entire decline in fair value is deemed to be credit related and the loss is recognized as a net investment loss. Subsequent changes in the anticipated recoveries, limited by the amount of previous taken credit allowances, are recorded through changes in the allowance for credit losses and recognized through net investment loss. When a security is disposed or deemed uncollectible and written-off, we reverse amounts previously recognized in the credit loss allowance through net investment loss. Deferred Policy Acquisition Costs and Deferred Sales Inducements The Company's DAC by reporting segment was as follows (2022 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 Property & Casualty $ 29.3 $ 24.5 Life & Retirement 297.7 299.5 Supplemental & Group Benefits 9.3 6.6 Total $ 336.3 $ 330.6 DAC consists of costs that are incremental and directly related to the successful acquisition of new or renewal insurance contracts. Such costs include the incremental direct costs of contract acquisition, such as sales commissions; the portion of employees' total compensation and payroll-related fringe benefits related directly to time spent performing acquisition activities, such as underwriting, issuing, and processing policies for contracts that have actually been acquired; and other costs related directly to acquisition activities that would not have been incurred if the contract had not been acquired. For property and casualty risks, DAC is amortized over the terms of the insurance policies (6 or 12 months). For supplemental and group benefit policies, DAC is amortized in proportion to anticipated premiums over the terms of the insurance policies (approximately 6 years, based on an estimated average duration across all supplemental and group benefit products). Life contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. For all life insurance products, the constant level basis used is face amount in force. For all deferred annuity products, the constant level basis used is the deposit amount in force. The constant level basis used for amortization is projected using mortality and lapse assumptions that are based on the Company's experience, industry data, and other factors and are consistent with those used for the liabilities for future policy benefits (LFPB). If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected terminations, due to mortality and lapse experience higher than expected, are recognized in the current period as a reduction of the capitalized balances. Amortization of DAC is recognized as DAC amortization expense presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). The DAC balance is reduced for actual experience in excess of expected experience. Changes in future estimates are recognized prospectively over the remaining expected contract term. Deferred sales inducements (DSIs) are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy. DSIs may be deferred if the Company can demonstrate that the deferred sales inducement amounts are both incremental to the amounts Company credits on similar contracts without sales inducements and the amounts are higher than the contract's expected ongoing crediting rates for periods after the inducement. Day-one bonuses and persistency bonuses generally meet the criteria to be deferred. DSIs are amortized using the same methodology and assumptions used to amortize DAC. Intangible Assets, net The value of business acquired (VOBA) associated with the acquisition of NTA Life Enterprises, LLC (NTA) represents the difference between the fair value of insurance contracts and insurance policy reserves measured in accordance with the Company's accounting policy for insurance contracts acquired. VOBA was based on an actuarial estimate of the present value of future distributable earnings for insurance in force on the acquisition date. VOBA net of accumulated amortization was $64.8 million as of December 31, 2023 and is being amortized by product based on the present value of future premiums to be received. The Company estimates that it will recognize VOBA amortization of $5.4 million in 2024, $5.1 million in 2025, $4.7 million in 2026, $4.4 million in 2027 and $4.1 million in 2028. The Company accounts for the value of distribution acquired (VODA) associated with the acquisition of NTA based on an actuarial estimate of the present value of future business to be written by the existing distribution channel. VODA net of accumulated amortization was $36.0 million as of December 31, 2023 and is being amortized on a straight-line basis. The Company estimates that it will recognize VODA amortization of $2.9 million in each of the years 2024 through 2028, respectively. The Company accounts for the value of agency relationships based on the present value of commission overrides retained by NTA. Agency relationships net of accumulated amortization was $7.2 million as of December 31, 2023 and is being amortized based on the present value of future premiums to be received. The Company estimates that it will recognize agency relationships amortization of $1.4 million in 2024, $1.2 million in 2025, $1.0 million in 2026, $0.9 million in 2027 and $0.8 million in 2028. The Company accounts for the value of customer relationships based on the present value of expected profits from existing Benefit Consultants Group, Inc. (BCG) and Madison National customers in force at the date of acquisition. Customer relationships net of accumulated amortization was $48.4 million as of December 31, 2023 and is being amortized based on the present value of future profits to be received for BCG and based on the present value of future premiums for Madison National. The Company estimates that it will recognize customer relationships amortization of $4.8 million in 2024, $5.1 million in 2025, $5.5 million in 2026, $5.9 million in 2027 and $6.3 million in 2028. The trade names intangible asset represents the present value of future savings accruing to NTA, BCG and BCGS by virtue of not having to pay royalties for the use of the trade names, valued using the relief from royalty method. The state licenses intangible asset represents the regulatory licenses held by NTA and Madison National that were valued using the cost approach. Both the trade names and state licenses are indefinite-lived intangible assets that are not subject to amortization. Annually, the Company performs a VOBA analysis on supplemental insurance policies to assess whether a loss recognition event has occurred. This initially involves comparing the historical and expected future experience on the block to the assumptions embedded in the original VOBA intangible asset. If both the experience to date and current expected experience are consistently better than the initial VOBA assumptions, the remaining value in the block is sufficient to support the VOBA intangible asset and no loss recognition is necessary. If the historical and current expected assumptions are not uniformly better than the initial VOBA assumptions, a gross premium valuation (GPV) is performed to assess whether a loss recognition event has occurred. This involves discounting expected future benefits and expenses less expected future premiums. To the extent that this amount is greater than the liability for future benefits less the VOBA intangible asset, in aggregate for the supplemental insurance block, a loss would be recognized by first writing-off the VOBA and then increasing the liability. Currently, a GPV is not required for the acquired supplemental block. No such costs were deemed unrecoverable during the year ended December 31, 2023. Amortizing intangible assets (i.e., VODA, agency relationships and customer relationships) are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The carrying amount of an amortizing intangible asset is not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is not recoverable from undiscounted cash flows, the impairment is measured as the difference between the carrying amount and fair value. Intangible assets that are not subject to amortization (i.e., trade names and state licenses) are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. As of October 1, 2023, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount. As of October 1, 2022, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount with the exception of lower than anticipated BCG revenues. As of October 1, 2021, the Company performed both qualitative assessments and quantitative impairment tests for intangible assets and concluded that no impairments were warranted. Goodwill When the Company was acquired from CIGNA Corporation by HME Holdings, Inc. in 1989, goodwill was recognized in the application of purchase accounting. In 1994, goodwill was recognized with respect to the acquisition of Horace Mann Property & Casualty Insurance Company. In 2019, goodwill was recognized with respect to the acquisitions of BCG, BCGS and NTA. In 2022, goodwill was recognized with respect to the acquisition of Madison National. Goodwill represents the excess of the amounts paid to acquire a business over the fair value of its net assets at the date of acquisition. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least annually or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A reporting unit is defined as an operating segment or a business unit one level below an operating segment, if separate financial information is prepared and regularly reviewed by management at that level. The Company's reporting units, for which goodwill has been allocated, are Property & Casualty, Life, BCG, BCGS, NTA, and Madison National. Refer to Note 9 for the allocation of goodwill by reporting segment as of December 31, 2023. The goodwill impairment test, as defined in GAAP, allows an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity performs a quantitative goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount for purposes of confirming and measuring an impairment. Goodwill impairment is the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. Any amount of goodwill determined to be impaired is recognized as an expense in the period in which the impairment determination is made. As of October 1, 2023, the Company performed a qualitative goodwill impairment test. Based on the results of the test, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company performed quantitative goodwill impairment tests as of October 1, 2022 and 2021, and concluded no material adjustments were necessary to goodwill. During each year from 2021 through 2023, the Company completed the required annual goodwill impairment testing. With exception to the goodwill impairment charges described in Note 9, no other goodwill impairment charges were necessary as a result of such assessments. The assessment of goodwill recoverability requires significant judgment and is subject to inherent uncertainty. The use of different assumptions, within a reasonable range, could cause the fair value of a reporting unit to fall below its carrying amount. Subsequent goodwill assessments could result in impairment, particularly for any reporting unit with at-risk goodwill, due to the impact of a volatile financial market on earnings, discount rate assumptions, liquidity and market capitalization. Property and Equipment Property and equipment is carried at cost less accumulated depreciation, which is calculated using the straight-line method and based on the estimated useful lives of the assets. The estimated life for real estate is identified by specific property and ranges from 20 to 45 years. The estimated useful lives of leasehold improvements and other property and equipment, including capitalized software, generally range from 3 to 10 years. The following amounts are included in Other assets in the Consolidated Balance Sheets: ($ in millions) December 31, 2023 2022 Property and equipment $ 129.4 $ 148.3 Less: accumulated depreciation 60.8 79.0 Total $ 68.6 $ 69.3 Separate Account Variable Annuity Assets and Liabilities Separate Account variable annuity assets represent contractholder funds invested in various mutual funds. The Separate Account variable annuity assets comprise actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the Separate Account variable annuity assets are invested are obtained daily from the fund managers. Separate Account variable annuity liabilities are equal to the estimated fair value of Separate Account variable annuity assets. The investment income, gains and losses of these accounts accrue directly to the contractholders and are not included in the results of operations of the Company. The activity of the Separate Accounts is not reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss) except for (1) contract charges earned and (2) the activity related to contract guarantees, which are benefits on existing variable annuity contracts. The Company's contract charges earned include fees charged to the Separate Accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Future Policy Benefits Reserves Liability for Future Policy Benefits LFPB, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that include discount rate, mortality, lapses, and expenses. These current assumptions are based on judgments that consider the Company's historical experience, industry data, and other factors. For traditional, limited-payment and supplemental health contracts, such contracts are grouped into cohorts by contract type and issue year. The liability is adjusted for differences between actual and expected experience. With the exception of the expense assumption, the Company reviews its historical and future cash flow assumptions at least annually and updates the net premium ratio used to calculate the liability each time the assumptions are changed. The Company has elected to use expense assumptions that are locked-in at contract inception and are not subsequently reviewed or updated. At least annually, the Company updates its estimate of cash flows expected over the entire life of a group of contracts using actual historical experience and current future cash flow assumptions. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated LFPB as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. This amount is then compared to the carrying amount of the liability as of that same date, before updating cash flow assumptions, to determine the current period change in liability estimate. This current period change in liability estimate is the liability remeasurement gain or loss. The impact of updated cash flow assumptions as well as the periodic liability remeasurement gain or loss is recognized as Benefits, claims and settlement expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). In subsequent periods, the revised net premiums are used to measure LFPB, subject to future revisions. For traditional and limited-payment contracts, a standard discount rate is used to measure the liabilities that is equivalent to the yield from an A-rated bond. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in other comprehensive income. For liability cash flows that are projected beyond the duration of market-observable A- rated bond, the Company uses the last market-observable yield level, and uses linear interpolation to determine yield assumptions for durations that do not have market-observable yields. Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of LFPB, including discount rate, mortality, lapses, and expenses. DPL is amortized and recognized as premium revenue in proportion to insurance in force for life insurance contracts and expected future benefit payments for annuity contracts. Interest is accreted on the balance of DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimates of cash flows for DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to Net premiums and contract charges earned presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). DPL is recognized as a component of the Future policy benefit reserves presented in the Consolidated Balance Sheets. Policyholders' Account Balances Liabilities for future benefits on annuity contracts are carried at accumulated policyholder accoun |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Net Investment Income The components of net investment income for the following periods were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Fixed maturity securities $ 269.2 $ 247.2 $ 235.6 Equity securities 6.5 9.0 5.3 Limited partnership interests 59.1 40.5 79.0 Short-term and other investments 17.2 11.2 11.6 Investment expenses (12.1) (10.5) (10.1) Net investment income - investment portfolio 339.9 297.4 321.4 Investment income - deposit asset on reinsurance 104.9 103.5 101.1 Total net investment income $ 444.8 $ 400.9 $ 422.5 Net Investment Losses Net investment losses for the following periods were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Fixed maturity securities $ (20.3) $ (29.1) $ (7.7) Equity securities (3.9) (32.6) (0.8) Short-term investments and other 0.2 5.2 (2.5) Net investment losses $ (24.0) $ (56.5) $ (11.0) The Company, from time to time, sells fixed maturity securities subsequent to the reporting date but prior to the issuance of the financial statements that were in an unrealized loss position but no credit loss was recognized and there was no intent to sell the securities at the reporting date. Such sales are due to issuer-specific events occurring subsequent to the reporting date that result in a change in the Company's intent to sell a fixed maturity security. The types of events that may result in a sale include significant changes in the economic facts and circumstances related to the invested asset, significant unforeseen changes in liquidity needs, or changes in the Company's investment strategy. Net Investment Losses by Transaction Type The breakdown of net investment gains (losses) by transaction type for the following periods were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Credit loss impairments $ (0.4) $ (3.1) $ (8.1) Intent-to-sell impairments (6.7) (7.6) (2.3) Total impairments (7.1) (10.7) (10.4) Sales and other, net (25.0) (17.8) 4.3 Change in fair value - equity securities 7.9 (33.2) (2.3) Change in fair value and losses realized on settlements - derivatives 0.2 5.2 (2.6) Net investment losses $ (24.0) $ (56.5) $ (11.0) Allowance for Credit Loss Impairments on Fixed Maturity Securities The following table presents changes in the allowance for credit loss impairments on fixed maturity securities classified as available for sale for the category of other asset-backed securities (no other categories of fixed maturity securities have an allowance for credit loss impairments): ($ in millions) Year Ended December 31, 2023 2022 2021 Beginning balance $ 1.2 $ 7.7 $ — Credit losses on fixed maturity securities for which credit losses were not previously reported — — 8.1 Net increases (decreases) related to credit losses previously reported — 3.1 — Reduction of credit allowances related to sales — (9.2) — Write-offs — (0.4) (0.4) Ending balance $ 1.2 $ 1.2 $ 7.7 Fixed Maturity Securities The Company's investment portfolio is comprised primarily of fixed maturity securities. Amortized cost, net, gross unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows: ($ in millions) Amortized Gross Gross Fair December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 713.4 $ 4.4 $ 64.6 $ 653.2 Other, including U.S. Treasury securities 450.8 0.8 62.8 388.8 Municipal bonds 1,333.4 28.6 91.9 1,270.1 Foreign government bonds 23.1 — 1.0 22.1 Corporate bonds 1,969.9 23.1 220.3 1,772.7 Other asset-backed securities 1,162.3 6.0 39.9 1,128.4 Totals $ 5,652.9 $ 62.9 $ 480.5 $ 5,235.3 December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 638.2 $ 1.3 $ 69.1 $ 570.4 Other, including U.S. Treasury securities 410.0 0.5 67.8 342.7 Municipal bonds 1,380.9 16.9 128.1 1,269.7 Foreign government bonds 35.1 — 1.6 33.5 Corporate bonds 2,161.2 12.7 272.2 1,901.7 Other asset-backed securities 1,131.5 3.6 68.1 1,067.0 Totals $ 5,756.9 $ 35.0 $ 606.9 $ 5,185.0 The following table presents the fair value and gross unrealized losses for fixed maturity securities in an unrealized loss position as of December 31, 2023 and 2022. The Company views the decrease in fair value of all fixed maturity securities with unrealized losses as of December 31, 2023 as due to factors other than a credit loss. As of December 31, 2023, the Company has not made the decision to sell and it is more likely than not the Company will not be required to sell the fixed maturity securities with unrealized losses before a recovery of the amortized cost basis. In reaching our conclusion that an allowance for credit is unnecessary, we considered the factors described in the Application of Critical Accounting Estimates - Evaluation of Credit Loss Impairments for Fixed Maturity Securities. The performance of fixed maturity securities has been impacted by the change in interest rates, specifically interest rates being at relatively high levels compared to interest rates at the time of acquisition of the securities. Following significant increases in interest rates throughout 2022, driven mostly by increases in risk-free rates, rates stabilized during 2023 but remain at elevated levels. In consideration of the factors, we expect to receive cash flows sufficient to recover the entire amortized cost basis of the securities in the following table. ($ in millions) 12 months or less More than 12 months Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 45.3 $ 0.8 $ 458.5 $ 63.8 $ 503.8 $ 64.6 Other 39.5 0.4 288.0 62.4 327.5 62.8 Municipal bonds 64.5 0.9 724.6 91.0 789.1 91.9 Foreign government bonds 1.5 — 20.6 1.0 22.1 1.0 Corporate bonds 195.0 25.4 1,171.3 194.9 1,366.3 220.3 Other asset-backed securities 133.4 0.8 752.5 39.1 885.9 39.9 Total $ 479.2 $ 28.3 $ 3,415.5 $ 452.2 $ 3,894.7 $ 480.5 Number of positions with a gross unrealized loss 195 2,305 2,500 Fair value as a percentage of total fixed maturities securities fair value 9.2 % 65.2 % 74.4 % December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 458.3 $ 54.4 $ 52.6 $ 14.7 $ 510.9 $ 69.1 Other 242.7 34.1 65.8 33.7 308.5 67.8 Municipal bonds 911.6 113.7 42.2 14.4 953.8 128.1 Foreign government bonds 32.7 1.4 0.4 0.2 33.1 1.6 Corporate bonds 1,345.0 221.1 148.9 51.1 1,493.9 272.2 Other asset-backed securities 543.4 37.1 424.3 31.0 967.7 68.1 Total $ 3,533.7 $ 461.8 $ 734.2 $ 145.1 $ 4,267.9 $ 606.9 Number of positions with a gross unrealized loss 2,515 587 3,102 Fair value as a percentage of total fixed maturities securities fair value 68.2 % 14.2 % 82.4 % With regards to fixed maturity securities that had gross unrealized losses more than 12 months, the number of positions by their respective credit ratings was as follows: Number of Positions December 31, 2023 2022 Credit Rating AAA 226 67 AA 1,006 217 A 423 94 BBB 448 93 Total investment grade 2,103 471 BB 93 68 B 39 31 CCC or lower 7 2 Total below investment grade 139 101 Not rated 63 15 Totals: 2,305 587 Fixed maturity securities with an investment grade rating represented 96.0% of the gross unrealized losses as of December 31, 2023. For the same reasons discussed above, we expect to receive cash flows sufficient to recover the entire amortized cost basis of the securities in the previous table. Maturities of Fixed Maturity Securities The following table presents the distribution of the Company's fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. ($ in millions) December 31, 2023 Amortized Fair Percent of Estimated expected maturity: Due in 1 year or less $ 298.6 $ 294.1 5.6 % Due after 1 year through 5 years 1,482.4 1,435.5 27.4 % Due after 5 years through 10 years 1,435.1 1,371.5 26.2 % Due after 10 years through 20 years 1,426.3 1,282.6 24.5 % Due after 20 years 1,010.5 851.6 16.3 % Total $ 5,652.9 $ 5,235.3 100.0 % Sales of Fixed Maturity and Equity Securities Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each year were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Fixed maturity securities Proceeds received $ 377.6 $ 752.0 $ 578.2 Gross gains realized 2.2 5.5 10.5 Gross losses realized (14.0) (23.7) (7.7) Equity securities Proceeds received $ 18.7 $ 10.8 $ 4.7 Gross gains realized — 1.7 1.5 Gross losses realized (11.8) (1.0) (0.1) Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities The following table reconciles the net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI: ($ in millions) Year Ended December 31, 2023 2022 2021 Net unrealized investment gains (losses) on fixed maturity securities, net of tax Beginning of period $ (449.6) $ 347.1 $ 366.3 Effect of adopting ASU 2018-12 — — 71.1 Change in net unrealized investment gains (losses) on fixed maturity securities 105.3 (819.7) (96.4) Reclassification of net investment (gains) losses on fixed maturity securities to net income 16.0 23.0 6.1 End of period $ (328.3) $ (449.6) $ 347.1 Limited Partnership Interests Investments in limited partnership interests are accounted for using the equity method of accounting (EMA) and include interests in commercial mortgage loan funds, real estate equity funds, private equity funds, infrastructure equity funds, infrastructure debt funds and other funds. Principal factors influencing carrying amount appreciation or depreciation include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. The carrying amounts of EMA limited partnership interests were as follows: ($ in millions) December 31, 2023 2022 Commercial mortgage loan funds $ 660.8 $ 593.6 Real estate equity funds 109.2 71.3 Private equity funds 92.7 76.3 Infrastructure equity funds 77.2 72.0 Infrastructure debt funds 59.1 60.0 Other funds (1) 139.8 110.5 Total $ 1,138.8 $ 983.7 (1) Other funds consist primarily of limited partnership interests in corporate mezzanine, venture capital, and private credit funds. Offsetting of Assets and Liabilities The Company's derivatives are subject to enforceable master netting arrangements. Collateral support agreements associated with each master netting arrangement provides that the Company will receive or pledge financial collateral in the event minimum thresholds have been reached. The Company’s reverse repurchase agreements are also subject to enforceable master netting arrangements but there was no offsetting in their presentation in the Company’s Consolidated Balance Sheets. The following table presents instruments that were subject to a master netting arrangement for the Company. ($ in millions) Gross Net Amounts Gross Amounts Not Offset Gross Financial Cash Net December 31, 2023 Asset derivatives Free-standing derivatives $ 19.0 $ — $ 19.0 $ — $ 18.5 $ 0.5 December 31, 2022 Asset derivatives Free-standing derivatives $ 6.8 $ — $ 6.8 $ — $ 5.9 $ 0.9 Deposits At December 31, 2023 and 2022, fixed maturity securities with a fair value of $29.2 million and $28.6 million, respectively, were on deposit with governmental agencies as required by law in various states for which the insurance subsidiaries of the Company conduct business. In addition, as of December 31, 2023 and 2022, fixed maturity securities with a fair value of $987.2 million and $860.4 million, respectively, were on deposit with FHLB as collateral for amounts subject to funding agreements, advances and borrowings which were equal to $904.5 million and $792.5 million at the respective dates. The deposited securities are reported as Fixed maturity securities in the Company's Consolidated Balance Sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company is required to disclose estimated fair values for certain financial and nonfinancial assets and liabilities. Fair values for the Company's insurance contracts other than annuity contracts (which are investment contracts) and equity method limited partnership interests are not required to be disclosed in fair value hierarchy. The estimated fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk through the matching of investment maturities with amounts due under insurance contracts. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between knowledgeable, unrelated and willing market participants on the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company categorizes the fair value of its financial and nonfinancial assets and liabilities into a three-level hierarchy based on the priority of inputs to the valuation technique. The three levels of inputs that may be used to measure fair value are: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include certain fixed maturity and equity securities that are traded in an active exchange market, as well as U.S. Treasury securities. Level 2 Unadjusted observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for the assets or liabilities. Level 2 assets and liabilities include fixed maturity securities (1) with quoted prices that are traded less frequently than exchange-traded instruments or (2) values based on discounted cash flows with observable inputs. This category generally includes certain U.S. Government and agency mortgage-backed securities, non-agency structured securities, corporate fixed maturity securities, preferred stocks, derivatives and embedded derivatives. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, certain discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation and for which the significant inputs are unobservable. This category generally includes certain private debt and equity instruments, as well as embedded derivatives. When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. As a result, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). Net transfers into or out of each of the three levels are reported as having occurred at the end of the reporting period in which the transfers were determined. The following discussion describes the valuation methodologies used for financial assets and financial liabilities measured at fair value. The techniques utilized in estimating fair value are affected by the assumptions used, including discount rates and estimates of the amount and timing of expected future cash flows. The use of different methodologies, assumptions and inputs may have a material effect on the estimated fair values of the Company's financial assets and liabilities. Judgment is exercised in deriving conclusions about the Company's business, its value or financial position based on the fair value information of financial assets and liabilities presented below. Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial asset or financial liability, including estimates of both the timing and amount of expected future cash flows and the credit standing of the issuer. In some cases, fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial asset or financial liability. The disclosed fair values do not reflect any premium or discount that could result from offering for sale at one time an entire holding of a particular financial asset or financial liability. In periods of market disruption, the ability to observe prices and inputs may be reduced for many financial instruments. This condition could cause a financial instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. Potential taxes and other expenses that would be incurred in an actual sale or settlement are not reflected in the fair value amounts disclosed. Investments The fair value of a fixed maturity security is the price that would be received in an orderly transaction between market participants at the measurement date. We obtain prices from third-party valuation service providers, our investment managers, and custodian bank, each of which use a variety of valuation service providers, broker quotes, and modeled prices. When necessary, we also internally model securities to develop a price. Differences in prices between the sources that we consider reliable are researched and we use the price that we consider most representative of an exit price in determining the fair value. Typical inputs used by these pricing sources include, but are not limited to, reported trades, broker quotes, yield curves, and involve the benchmarking of similar securities, rating designations, sector groupings, issuer spreads and/or estimated cash flows, prepayment speeds and default rates, among others, in determining the inputs to the prices. Our fixed maturity securities portfolio is primarily publicly traded, which allows for a high percentage of the fixed maturity securities portfolio to be priced through pricing services using observable inputs. Approximately 87.7% and 88.6% of the fixed maturity securities portfolio, based on fair value, was priced through valuation services or priced using observable inputs as of December 31, 2023 and 2022, respectively. The remainder of the fixed maturity securities portfolio was priced by broker quotes, modeled prices by our investment managers or internal pricing models. Non-binding broker quotes are generally classified as Level 3, unless the quotes can be corroborated by comparison to other valuation service provider prices or observable pricing models or analyses, whereby they could be classified as Level 2. There were no significant changes to the valuation process during 2023. The valuation of hard-to-value fixed maturity securities (generally 75 -125 securities) is more subjective because the markets are less liquid and there is a lack of observable market-based inputs. This may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction would occur. When the pricing sources cannot provide fair value determinations, the investment managers obtain non-binding price quotes from brokers. For those securities where the investment manager cannot obtain broker quotes, they will model the security, generally using estimated cash flows of the underlying collateral. Brokers' valuation methodologies as well as investment managers’ modeling methodologies are sometimes matrix-based, using indicative evaluation measures and adjustments for specific security characteristics and market sentiment. The selection of the market inputs and assumptions used to estimate the fair value of hard-to-value fixed maturity securities requires judgment and includes: benchmark yield, liquidity premium, estimated cash flows, prepayment speeds and default rates, spreads, weighted average life, and credit rating. The extent of the use of each market input depends on the market sector and market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary. To determine the fair value of equity securities, the Company uses its third-party valuation service providers, investment managers or its custodian bank to obtain fair value prices from independent third-party valuation service providers. In summary, the following financial assets and financial liabilities are carried at fair value on a recurring basis: Financial assets • Fixed maturity securities, including hard-to-value fixed maturity securities, as described above. • Equity securities, as described above. • Short-term investments — Because of the nature of these assets, carrying amounts are amortized cost which approximate fair values. • Other investments — Other investments include derivatives. Fair values of derivatives are based on the amount of cash expected to be received to settle each derivative on the reporting date. These amounts are obtained from each of the counterparties using industry accepted valuation models and observable inputs. Significant inputs include contractual terms, underlying index prices, market volatilities, interest rates and dividend yields. Financial liabilities • The fair value of derivatives embedded in IUL contracts is set equal to the fair value of the outstanding call options. • The fair value of derivatives embedded in FIA contracts is determined using the option budget method for each premium received (i.e., the option budget method is used as the future account growth rate). With this method, future excess cash flows (defined as benefits in excess of required non-forfeiture benefits) are discounted at the risk-free rate and adjusted for non-performance, to determine the fair value of the embedded derivatives. • MRBs are measured at fair value using a non-option-based valuation model based on current net amounts at risk, market data, Company experience, and other factors. Financial Instruments Measured and Carried at Fair Value on a Recurring Basis The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. As of December 31, 2023, Level 3 investments comprised approximately 9.5% of the Company's total investment portfolio at fair value. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 December 31, 2023 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 653.2 $ 653.2 $ — $ 653.2 $ — Other, including U.S. Treasury securities 388.8 388.8 45.6 343.2 — Municipal bonds 1,270.1 1,270.1 — 1,196.1 74.0 Foreign government bonds 22.1 22.1 — 22.1 — Corporate bonds 1,772.7 1,772.7 10.1 1,420.1 342.5 Other asset-backed securities 1,128.4 1,128.4 — 1,030.9 97.5 Total fixed maturity securities 5,235.3 5,235.3 55.7 4,665.6 514.0 Equity securities 86.2 86.2 17.9 63.8 4.5 Short-term investments 132.9 132.9 132.9 — — Other investments 19.0 19.0 — 19.0 — Totals $ 5,473.4 $ 5,473.4 $ 206.5 $ 4,748.4 $ 518.5 Separate Account variable annuity assets (1) $ 3,294.1 $ 3,294.1 $ 3,294.1 $ — $ — Financial Liabilities (2) $ 86.0 $ 86.0 $ — $ 3.6 $ 82.4 December 31, 2022 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 570.4 $ 570.4 $ — $ 567.8 $ 2.6 Other, including U.S. Treasury securities 342.6 342.6 24.6 318.0 — Municipal bonds 1,269.7 1,269.7 — 1,215.3 54.4 Foreign government bonds 33.6 33.6 — 33.6 — Corporate bonds 1,901.7 1,901.7 12.2 1,628.2 261.3 Other asset-backed securities 1,067.0 1,067.0 — 962.0 105.0 Total fixed maturity securities 5,185.0 5,185.0 36.8 4,724.9 423.3 Equity securities 99.6 99.6 23.3 74.3 2.0 Short-term investments 109.4 109.4 109.4 — — Other investments 38.6 38.6 — 38.6 — Totals $ 5,432.6 $ 5,432.6 $ 169.5 $ 4,837.8 $ 425.3 Separate Account variable annuity assets (1) $ 2,792.3 $ 2,792.3 $ 2,792.3 $ — $ — Financial Liabilities (2) $ 92.5 $ 92.5 $ — $ 1.2 $ 91.3 (1) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of Separate Account variable annuity assets. (2) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. Changes in Level 3 Fair Value Measurements The Company did not have any transfers between Levels 1 and 2 during 2023 and 2022. The following tables present reconciliations for the periods indicated for all Level 3 financial assets and financial liabilities measured at fair value on a recurring basis. ($ in millions) Financial Assets Financial Liabilities (1) Municipal Corporate Mortgage-Backed and Other Asset- Backed Securities (2) Total Equity Total Beginning balance, January 1, 2023 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.3 Transfers into Level 3 (3) — 76.5 0.8 77.3 2.1 79.4 — Transfers out of Level 3 (3) — (3.7) — (3.7) — (3.7) — Total gains or losses Net investment gains (losses) included in net income — — — — 0.4 0.4 — Net investment (gains) losses included in net income related to financial liabilities — — — — — — 1.3 Net unrealized investment gains (losses) included in OCI 11.3 (17.1) 5.0 (0.8) — (0.8) 0.4 Purchases 9.5 64.5 2.0 76.0 — 76.0 — Issuances — — — — — — 8.0 Sales — (7.7) — (7.7) — (7.7) — Settlements — — — — — — — Paydowns, maturities and distributions (1.2) (31.3) (17.9) (50.4) — (50.4) (18.6) Ending balance, December 31, 2023 $ 74.0 $ 342.5 $ 97.5 $ 514.0 $ 4.5 $ 518.5 $ 82.4 Beginning balance, January 1, 2022 $ 60.8 $ 210.3 $ 98.9 $ 370.0 $ 1.4 $ 371.4 $ 111.4 Transfers into Level 3 (3) 0.6 157.9 34.5 193.0 0.8 193.8 — Transfers out of Level 3 (3) (3.2) (34.8) (4.8) (42.8) — (42.8) — Total gains or losses Net investment gains (losses) included in net income — — (3.3) (3.3) (0.1) (3.4) — Net investment (gains) losses included in net income related to financial liabilities — — — — — — (14.8) Net unrealized investment gains (losses) included in OCI (10.5) (16.1) (11.6) (38.2) — (38.2) (2.6) Purchases 0.2 20.2 12.8 33.2 — 33.2 — Issuances — — — — — — 7.4 Sales — — (4.8) (4.8) — (4.8) — Settlements — — — — — — — Paydowns, maturities and distributions 6.5 (76.2) (14.1) (83.8) (0.1) (83.9) (10.1) Ending balance, December 31, 2022 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.3 (1) Represents embedded derivatives, all related to the Company's FIA products, reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the years ended December 31, 2023 and 2022 were attributable to changes in the availability of observable market information for individual fixed maturity securities and short-term investments. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. As of December 31, 2023, the Company had a $0.4 million net investment gain on Level 3 financial assets that was included in net income and was primarily attributable to credit loss impairments. As of December 31, 2022 the Company had a $3.4 million net investment loss on Level 3 financial assets that was included in net income. For the years ended December 31, 2023 and 2022, a net investment loss of $1.3 million and a net investment gain of $14.8 million, respectively, were included in net income that were attributable to changes in the fair value of Level 3 financial liabilities. Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions, 2022 information recast for the adoption of LDTI): ($ in millions) Total Internal External December 31, 2023 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 74.0 — 74.0 Corporate bonds 342.5 180.4 162.1 Other asset-backed securities 97.5 — 97.5 Total fixed maturity securities 514.0 180.4 333.6 Equity securities 4.5 — 4.5 Totals $ 518.5 $ 180.4 $ 338.1 Financial Liabilities (1) $ 82.4 $ 82.4 $ — December 31, 2022 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 2.6 $ — $ 2.6 Municipal bonds 54.4 — 54.4 Corporate bonds 261.3 9.5 251.8 Other asset-backed securities 105.0 — 105.0 Total fixed maturity securities 423.3 9.5 413.8 Equity securities 2.0 — 2.0 Totals $ 425.3 $ 9.5 $ 415.8 Financial Liabilities (1) $ 91.3 $ 91.3 $ — (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available. Quantitative Information about Level 3 Fair Value Measurements The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3. ($ in millions) Fair Value at December 31, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 180.4 discounted cash flow yield 6.7% - 17.0% Decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 86.3 discounted cash flow lapse rate 5.9% Decrease mortality multiplier (2) 69.4% Decrease option budget 0.9% - 3.8% Increase non-performance adjustment (3) 5.0% Decrease Net MRBs $ (3.9) discounted cash flow lapse rate 5.9% Decrease mortality multiplier (2) 67.8% Increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. ($ in millions) Fair Value at December 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 9.5 discounted cash flow yield 6.8% Decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 91.0 discounted cash flow lapse rate 5.4% Decrease mortality multiplier (2) 67.8% Decrease option budget 0.9% - 3.4% Increase non-performance adjustment (3) 5.0% Decrease Net MRBs $ 0.3 discounted cash flow lapse rate 5.3% Decrease mortality multiplier (2) 67.8% Increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. The valuation techniques and significant unobservable inputs used in the fair value measurement for financial assets and financial liabilities classified as Level 3 are subject to the processes as previously described in this Note. Generally, valuation techniques for corporate bonds include using discounted cash flow techniques where the unobservable input is the yield. The yield used for the valuation of these fixed maturity securities is less observable than securities classified as Level 2. Financial Instruments Not Carried at Fair Value The following table presents the carrying amount and fair value of the Company’s financial assets and financial liabilities not carried at fair value and the level within the fair value hierarchy at which such financial assets and liabilities are categorized. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 December 31, 2023 Financial Assets Other investments $ 218.4 $ 221.7 $ — $ 33.8 $ 187.9 Deposit asset on reinsurance 2,496.6 2,259.6 — — 2,259.6 Financial Liabilities Policyholders' account balances 4,996.3 4,861.8 — — 4,861.8 Other policyholder funds 916.0 916.0 — 908.7 7.3 Long-term debt 546.0 571.4 — 571.4 — December 31, 2022 Financial Assets Other investments $ 167.4 $ 170.9 $ — $ — $ 170.9 Deposit asset on reinsurance 2,516.6 2,207.2 — — 2,207.2 Financial Liabilities Policyholders' account balances 5,039.7 4,940.3 — — 4,940.3 Other policyholder funds 863.0 863.0 — 810.7 52.3 Reverse repurchase agreements 70.2 73.9 — 73.9 — Short-term debt 249.0 249.0 — — 249.0 Long-term debt 249.0 240.5 — 240.5 — Other Investments Other investments includes policy loans, mortgage loans and FHLB common stock. For policy loans, fair value is based on estimates using discounted cash flow analysis and current interest rates being offered for new loans. For mortgage loans, fair value is estimated by discounting the expected future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and similar remaining maturities. For FHLB common stock, fair value is the redemption value, which is the same as the carrying amount and par value. Deposit Asset on Reinsurance The fair value of the deposit asset on reinsurance is estimated by discounting the future cash flows that are expected to arise out of the annuity reinsurance transaction. The Treasury yield curve, plus an assumed credit spread, is used to determine the appropriate discount rate. Policyholders' Account Balances Policyholder’s account balances include fixed annuity contract liabilities, policyholder account balances on life contracts, supplementary contracts without life contingencies and retained asset accounts. The fair values of fixed annuity contract liabilities and policyholder account balances on life contracts are equal to the discounted estimated future cash flows (using the Company's current interest rates for similar products including consideration of minimum guaranteed interest rates). The Company carries these financial liabilities at cost. Liabilities related to supplementary contracts without life contingencies and retained asset accounts are carried at cost, which management believes is a reasonable estimate of fair value due to the relatively short duration of these items, based on the Company's past experience. Also, included in Policyholder's account balances are embedded derivatives related to the Company's IUL and FIA account balances and net MRBs which are carried at fair value. Other Policyholder Funds Other policyholder funds includes balances outstanding under funding agreements with the FHLB and dividend accumulations. These components are carried at cost, which management believes is a reasonable estimate of fair value due to the relatively short duration of these items, based on the Company's past experience. Reverse Repurchase Agreements Reverse repurchase agreements are transactions in which the Company (transferor) transfers fixed maturity securities to another party (transferee) and receives cash (or securities), with a simultaneous agreement to repurchase the same securities (or substantially the same securities) at a specified price on a specified date. These transactions are generally short-term in nature, and therefore, the carrying amounts of these instruments approximate fair value. The Company accounts for reverse repurchase agreements as secured borrowings. This means that the fixed maturity securities transferred under reverse repurchase agreements are included in Fixed maturity securities with the obligation to repurchase those securities reported in Other liabilities on the Company's Consolidated Balance Sheets. The carrying amount of the Company's obligation under reverse repurchase agreements is equal to the amount of cash it received on the date of transfer and the fair value of the Company's obligation under reverse repurchase agreements is equal to the-then current fair value of the fixed maturity securities transferred as of the reporting date. Short-term Debt The Company carries short-term debt at amortized cost which approximates fair value. Long-term Debt The Company carries long-term debt at amortized cost. The fair value of long-term debt is estimated based on unadjusted quoted market prices of the Company's securities or unadjusted market prices based on similar publicly traded issues when trading activity for the Company's securities is not sufficient to provide a market price. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | The Company offers FIA products, which are deferred fixed annuities that guarantee the return of principal to the contractholder and credits interest based on a percentage of the gain in a specified market index. The Company also offers IUL products which credits interest based on a percentage of the gain in a specified market index. When deposits are received for FIA and IUL contracts, a portion is used to purchase derivatives consisting of call options on the applicable market indices to fund the index credits due to FIA and IUL policyholders. For the Company, substantially all such call options are one-year options purchased to match the funding requirements of the underlying contracts. The change in fair value of derivatives includes the gains or losses recognized at the expiration of the option term or early termination and the changes in fair value for open positions. Call options are not purchased to fund the index liabilities that may arise after the next deposit anniversary date. On the respective anniversary dates of the indexed deposits, the index used to compute the annual index credit is reset and new one-year call options are purchased to fund the next annual index credit. The cost of these purchases is managed through the terms of the FIA and IUL contracts, which permit changes to index return caps, participation rates and/or asset fees, subject to guaranteed minimums on each contract's anniversary date. By adjusting the index return caps, participation rates or asset fees, crediting rates generally can be managed except in cases where the contractual features would prevent further modifications. The future annual index credits on FIA are accounted for as a "series of embedded derivatives" over the expected life of the applicable contract with a corresponding reserve recognized. For IUL, the embedded derivative represents a single-year liability for the index return. The Company carries all derivatives at fair value in the Consolidated Balance Sheets. The Company elected to not use hedge accounting for derivative transactions related to the FIA and IUL products. As a result, the Company recognizes the purchased call options and the embedded derivatives related to the provision of a contingent return at fair value, with changes in the fair value of the derivatives recognized immediately as Net investment gains (losses) in the Consolidated Statements of Operations and Comprehensive Income (Loss). The fair values of derivatives, including derivatives embedded in FIA and IUL contracts, are presented in the Consolidated Balance Sheets as follows: ($ in millions) December 31, 2023 2022 Assets Derivatives, reported in Short-term and other investments $ 19.0 $ 6.8 Liabilities FIA - embedded derivatives, reported in Policyholders' account balances 86.3 91.0 IUL - embedded derivatives, reported in Policyholders' account balances 3.6 1.2 In general, the change in the fair value of the embedded derivatives related to FIA will not correspond to the change in fair value of the purchased call options because the purchased call options are one-year options while the fair value of the embedded derivatives represent the rights of the policyholder to receive index credits over the entire period the FIA contracts are expected to be in force, which typically exceeds 10 years. The changes in fair value of derivatives included in the Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: ($ in millions) Years Ended December 31, 2023 2022 2021 Change in fair value of derivatives: (1) Net investment gains (losses) $ 7.4 $ (9.7) $ 8.7 Change in fair value of embedded derivatives: Net investment gains (losses) (7.2) 14.9 (11.3) (1) Includes gains (losses) recognized at option expiration or early termination and changes in fair value for open positions. The Company's strategy attempts to mitigate potential risk of loss under these agreements through a regular monitoring process, which evaluates the program's effectiveness. The Company is exposed to risk of loss in the event of nonperformance by the counterparties and, accordingly, option contracts are purchased from multiple counterparties, which are evaluated for creditworthiness prior to purchase of the contracts. All of these options have been purchased from nationally recognized financial institutions with a S&P/Moody's Investors Service, Inc. (Moody's) long-term credit rating of "BBB+/A3" or higher at the time of purchase and the maximum credit exposure to any single counterparty is subject to concentration limits. The Company also obtains credit support agreements that allow it to request the counterparty to provide collateral when the fair value of the exposure to the counterparty exceeds specified amounts. The notional amount and fair value of call options by counterparty and each counterparty's long-term credit ratings were as follows: ($ in millions) December 31, 2023 December 31, 2022 Credit Rating Notional Fair Notional Fair Counterparty S&P Moody's Amount Value Amount Value Bank of America, N.A. A+ Aa1 $ 270.2 $ 15.5 $ 245.5 $ 6.5 Credit Suisse International A+ A3*+ — — — — Societe Generale A A1 — — — — Barclays Bank PLC A+ A1 89.2 3.5 67.5 0.3 Citigroup BBB+ A3 — — — — Total $ 359.4 $ 19.0 $ 313.0 $ 6.8 As of December 31, 2023 and 2022, the Company held $18.5 million and $5.9 million, respectively, of cash and financial instruments received from counterparties for derivative collateral, which is included in Other liabilities on the Consolidated Balance Sheets. This derivative collateral limits the Company's maximum amount of economic loss due to credit risk that would be incurred if parties to the call options failed completely to perform according to the terms of the contracts to $0.3 million per counterparty |
Short-Duration Insurance Contra
Short-Duration Insurance Contracts | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Loss Reserves [Abstract] | |
Short-Duration Insurance Contracts | Short-Duration Insurance Contracts Property & Casualty Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending Property & Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Property & Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of the year gross reserve (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. ($ in millions) Years Ended December 31, 2023 2022 2021 Property & Casualty Gross reserves, beginning of year $ 388.7 $ 362.4 $ 372.2 Less: reinsurance recoverables 100.8 110.3 112.9 Net reserves, beginning of year (1) 287.9 252.1 259.3 Incurred claims and claim expenses: Claims occurring in the current year 557.0 512.3 455.1 Increase (decrease) in estimated reserves for claims occurring in prior years (2) — 22.0 (7.2) Total claims and claim expenses incurred 557.0 534.3 447.9 Claims and claim expense payments for claims occurring during: Current year 353.1 320.0 307.1 Prior years 179.0 178.5 148.0 Total claims and claim expense payments 532.1 498.5 455.1 Net reserves, end of year 312.8 287.9 252.1 Plus: reinsurance recoverables 104.0 100.8 110.3 Gross reserves, end of year $ 416.8 $ 388.7 $ 362.4 (1) Reserves are net of anticipated reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. Also, refer to the paragraphs below for additional information regarding prior years' reserve development recognized in 2023, 2022 and 2021. Underwriting results for Property & Casualty are significantly influenced by estimates of the Company's ultimate liability for insured events. There is a high degree of uncertainty inherent in the estimates of ultimate losses underlying the liability for unpaid claims and claim settlement expenses. This inherent uncertainty is particularly significant for liability-related exposures due to the extended period, often many years, which transpires between a loss event, receipt of related claims data from policyholders and ultimate settlement of the claim. Reserves for Property & Casualty claims include provisions for payments to be made on reported claims (case reserves), IBNR claims and associated settlement expenses (together, loss reserves). The process by which these loss reserves are established requires reliance upon estimates based on known facts and on interpretations of circumstances, including the Company's experience with similar cases and historical trends involving claim payments and related patterns, pending levels of unpaid claims and product mix, as well as other factors including court decisions, economic conditions, public attitudes and medical costs. The Company believes the Property & Casualty loss reserves are appropriately established based on available facts, laws, and regulations. The Company calculates and recognizes a single best estimate of the reserve as of each reporting date, for each line of business and its coverages for reported losses and for IBNR losses and as a result, the Company believes no other estimate is better than the recognized amount. Due to uncertainties involved, the ultimate cost of losses may vary materially from recognized amounts. The Company continually updates loss estimates using both quantitative and qualitative information from its reserving actuaries and information derived from other sources. Adjustments may be required as information develops which varies from experience, or, in some cases, augments data which previously was not considered sufficient for use in determining liabilities. The effects of these adjustments may be significant and are charged or credited to income in the period in which the adjustments are made. Numerous risk factors will affect more than one product line. One of these factors is changes in claim department practices, including claim closure rates, number of claims closed without payment, the use of third-party claim adjusters and the level of needed case reserve estimated by the adjuster. Other risk factors include changes in claim frequency, changes in claim severity, regulatory and legislative actions, court actions, changes in economic conditions and trends (e.g., medical costs, labor rates and the cost of materials), the occurrence of unusually large or frequent catastrophic loss events, timeliness of claim reporting, the state in which the claim occurred and degree of claimant fraud. The extent of the impact of a risk factor will also vary by coverages within a product line. Individual risk factors are also subject to interactions with other risk factors within product line coverages. While all product lines are exposed to these risks, there are some loss types or product lines for which the financial effect will be more significant. For instance, given the relatively large proportion (approximately 68% as of December 31, 2023) of the Company's reserves that are in the longer-tail auto liability coverages, regulatory and court actions, changes in economic conditions and trends, and medical costs could be expected to impact this product line more extensively than others. Reserves are established for claims as they occur for each line of business based on estimates of the ultimate cost to settle the claims. The actual loss results are compared to prior estimates and differences are recorded as re-estimates. The primary actuarial techniques (development of paid loss dollars, development of reported loss dollars, methods based on expected loss ratios and methods utilizing frequency and severity of claims) used to estimate reserves and provide for losses are applied to actual paid losses and reported losses (paid losses plus individual case reserves set by claim adjusters) for an accident year to create an estimate of how losses are likely to develop over time. In all of the loss estimation techniques referred to above, a ratio (development factor) is calculated which compares current results to results in the prior period for each accident year. Various development factors, based on historical results, are multiplied by the current experience to estimate the development of losses of each accident year from the current time period into the next time period. The development factors for the next time period for each accident year are compounded over the remaining calendar years to calculate an estimate of ultimate losses for each accident year. Occasionally, unusual aberrations in loss patterns are caused by factors such as changes in claim reporting, settlement patterns, unusually large losses, process changes, legal or regulatory environment changes, and other influences. In these instances, analyses of alternate development factor selections are performed to evaluate the effect of these factors and judgment is applied to make appropriate development factor assumptions needed to develop a best estimate of ultimate losses. Paid losses are then subtracted from estimated ultimate losses to determine the indicated loss reserves. The difference between indicated reserves and recorded reserves is the amount of reserve re-estimate. Reserves are re-estimated quarterly. When new development factors are calculated from actual losses that differ from estimated development factors used in previous reserve estimates, assumptions about losses and required reserves are revised based on the new development factors. Changes to reserves are recognized in the period in which development factor changes result in reserve re-estimates. Claim count estimates are also established for claims as they occur for each line of business based on estimates of the ultimate claim counts. These counts are derived by counting the number of claimants by insurance coverage. The primary actuarial techniques (development of paid claim counts and development of reported claim counts) used to estimate ultimate claim counts are applied to actual paid claim counts and reported claim counts (paid claims plus individual unpaid claims set by claim adjusters) for an accident year to create an estimate of how claims are likely to develop over time. An accident year refers to classifying claims based on the year in which the claim occurred. The ultimate claim count generally gives equal consideration to the results of the two actuarial techniques described. Occasionally, unusual aberrations in claim reporting patterns or claim payment patterns may occur. In these instances, analyses of alternate development factor selections are performed to evaluate the effect of these factors and judgment is applied to make appropriate development factor assumptions needed to develop a best estimate of ultimate claims. See tables on the following pages of Note 5 for details of the average annual percentage payout of incurred claims by age, also referred to as a history of claims duration and tables illustrating the incurred and paid claims development information by accident year on a net basis for the lines of homeowners, auto liability, and auto physical damage, which represents 99.7% of the Company's Property & Casualty incurred losses for 2023. Numerous actuarial estimates of the types described above are prepared each quarter to monitor losses for each line of business, including the line's individual coverages, for reported losses and IBNR. Often, several different estimates are prepared for each detailed component, incorporating alternative analyses of changing claim settlement patterns and other influences on losses, from which the Company selects the best estimate for each component, occasionally incorporating additional analyses and judgment, as described above. These estimates also incorporate the historical impact of inflation into reserve estimates, the implicit assumption being that a multi-year average development factor represents an adequate provision. Based on the Company's review of these estimates, as well as the review of independent reserve studies, the best estimate of required reserves for each line of business, including the line's individual coverages, is determined by management and is recognized for each accident year, then the required reserves for each component are summed to create the reserve balances carried on the Company's Consolidated Balance Sheets. Based on the Company's products and coverages, historical experience, and various actuarial methodologies used to develop reserve estimates, the Company estimates that the potential variability of the Property & Casualty loss reserves within a reasonable probability of other possible outcomes may be different than expected. A change in claim severity or claim frequency of approximately plus or minus 1.0% of reserves equates to plus or minus approximately $2.5 million of net income as of December 31, 2023. Although this evaluation reflects the most likely outcomes, it is possible the final outcome may fall below or above these estimates. Net favorable (unfavorable) development of total reserves for Property & Casualty claims occurring in prior years was $0.0 million in 2023, $(22.0) million in 2022 and $7.2 million in 2021. In 2022, the Property & Casualty had unfavorable prior years' auto reserve development of $28.0 million, reflecting the impact on severity of overall inflation, higher medical costs, increased usage of medical services and the current judicial environment, as well as favorable prior years' property reserve development of $6.0 million as a result of favorable loss trends for accident years 2021 and prior. In 2021, the favorable development was the result of favorable loss trends in auto and homeowners loss emergence for accident years 2020 and prior. The Company completes a detailed study of Property & Casualty reserves based on information available at the end of each quarter and year. Trends of reported losses (paid amounts and case reserves on claims reported to the Company) for each accident year are reviewed and ultimate loss costs for those accident years are estimated. The Company engages an independent property and casualty actuarial consulting firm to prepare an independent study of the Company's Property & Casualty reserves as of December 31 st of each year. The result of the independent actuarial study as of December 31, 2023 was consistent with management's analysis and selected estimates and did not result in any adjustments to the Company's Property & Casualty reserves recognized. At the time each of the reserve analyses was performed, the Company believed that each estimate was based upon sound methodology and such methodologies were appropriately applied and that there were no trends which indicated the likelihood of future loss reserve development. The financial impact of net reserve development was therefore accounted for in the period that the development was determined. No other adjustments were made in the determination of the liabilities during the periods covered by these consolidated financial statements. Management believes that, based on data currently available, it has reasonably estimated the Company's ultimate losses. Below is the average annual percentage payout of incurred claims by age, also referred to as a history of claims duration: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Homeowners 78.8 % 18.1 % 2.2 % 0.5 % 0.3 % — — — 0.1 % — Auto liability 37.1 % 35.1 % 14.7 % 6.9 % 3.4 % 1.6 % 0.6 % 0.2 % 0.4 % — Auto physical damage 94.7 % 5.3 % — — — — — — — — The following tables illustrate the incurred and paid claims development by accident year on a net basis for the lines of homeowners, auto liability and auto physical damage. Conditions and trends that have affected the development of these reserves in the past will not necessarily reoccur in the future. It may not be appropriate to use this cumulative history in the projection of future performance. The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as unaudited supplementary information. ($ in millions) Homeowners Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 111.6 $ 113.5 $ 109.1 $ 106.8 $ 106.6 $ 106.6 $ 106.4 $ 106.4 $ 106.4 $ 106.4 $ — 19,777 2015 111.7 115.1 114.4 114.1 115.1 114.9 114.9 114.9 114.9 — 19,745 2016 115.9 118.6 117.0 117.9 117.9 117.9 118.1 118.1 — 19,662 2017 126.3 129.8 132.7 130.7 130.8 130.8 131.3 0.3 19,741 2018 166.8 157.4 158.9 158.1 157.2 156.0 0.5 20,296 2019 130.4 129.9 132.1 130.9 131.1 0.3 18,114 2020 155.7 151.9 145.4 146.9 0.7 18,906 2021 150.2 150.7 154.3 1.9 18,056 2022 162.2 156.2 8.4 15,036 2023 183.1 38.8 14,655 Total $ 1,398.3 ($ in millions) Homeowners Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 83.3 $ 103.0 $ 105.7 $ 106.1 $ 106.3 $ 106.4 $ 106.4 $ 106.4 $ 106.4 $ 106.4 2015 90.7 109.3 111.9 113.3 114.6 114.9 114.7 114.7 114.9 2016 95.8 113.2 115.1 117.5 117.7 117.8 118.0 118.1 2017 106.8 128.5 129.8 130.0 130.5 130.7 131.2 2018 130.5 152.4 157.0 157.4 157.2 156.2 2019 103.8 126.2 129.1 130.0 130.4 2020 106.8 138.7 144.0 145.6 2021 114.9 146.3 151.0 2022 108.3 144.8 2023 126.3 Total 1,324.9 Outstanding prior to 2013 — Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 73.4 ($ in millions) Automobile Liability Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 155.1 $ 157.2 $ 158.5 $ 159.9 $ 159.8 $ 159.4 $ 159.3 $ 159.4 $ 160.0 $ 160.1 $ — 64,648 2015 165.5 172.6 177.0 178.3 178.7 179.2 178.9 178.8 178.9 — 68,626 2016 180.4 184.4 184.6 186.6 188.1 189.2 189.6 189.5 0.1 70,684 2017 188.0 188.8 188.6 189.1 191.7 192.9 192.5 0.3 68,371 2018 200.3 195.3 192.9 189.8 192.0 192.3 1.1 35,394 2019 181.1 180.1 176.7 181.5 181.2 3.0 61,879 2020 137.0 134.9 136.3 137.3 4.7 46,934 2021 142.2 157.8 156.7 11.5 45,005 2022 165.6 166.1 26.9 46,104 2023 176.4 70.0 42,198 Total $ 1,731.0 ($ in millions) Automobile Liability Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 61.3 $ 117.5 $ 139.5 $ 149.1 $ 155.8 $ 157.6 $ 158.6 $ 158.8 $ 160.0 $ 160.0 2015 70.8 134.5 158.0 170.1 174.5 176.7 177.7 178.3 178.6 2016 73.1 140.9 166.8 177.8 184.5 188.1 189.0 189.4 2017 70.7 139.5 166.6 179.8 185.8 190.8 191.8 2018 77.5 141.5 168.6 180.7 188.0 190.6 2019 69.7 129.1 155.5 170.9 176.2 2020 51.5 94.0 118.2 129.2 2021 52.9 112.5 136.5 2022 55.8 116.7 2023 62.2 Total 1,531.2 Outstanding prior to 2013 1.1 Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 200.9 ($ in millions) Automobile Physical Damage Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 95.6 $ 95.6 $ 95.4 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ — 68,139 2015 99.3 98.0 97.6 97.5 97.6 97.6 97.6 97.6 97.6 — 70,685 2016 112.4 109.5 109.3 109.6 109.6 109.5 109.5 109.6 — 74,209 2017 115.5 111.8 110.5 110.6 110.5 110.6 110.6 — 73,998 2018 109.0 108.9 108.3 108.3 108.2 108.3 — 72,833 2019 111.6 110.5 110.0 110.0 109.9 (0.1) 73,128 2020 87.0 86.9 87.1 87.0 (0.3) 62,044 2021 105.0 105.7 105.1 (0.4) 58,080 2022 125.7 125.5 0.9 59,353 2023 132.4 (6.0) 58,167 Total $ 1,081.2 ($ in millions) Automobile Physical Damage Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 88.9 $ 95.4 $ 95.3 $ 95.3 $ 95.3 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 2015 92.1 97.9 97.7 97.6 97.6 97.6 97.6 97.6 97.6 2016 106.5 109.7 109.5 109.6 109.6 109.6 109.5 109.5 2017 105.2 110.8 110.7 110.6 110.6 110.6 110.6 2018 103.6 109.1 108.3 108.3 108.2 108.2 2019 106.2 110.7 110.1 110.1 110.1 2020 84.1 87.6 87.4 87.3 2021 97.3 105.8 105.4 2022 114.6 124.3 2023 122.0 Total 1,070.2 Outstanding prior to 2013 — Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 11.0 Group Benefits Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the year ended December 31, 2023 (2022 recast for adoption of LDTI). The table presents reserves on both a gross and net (after reinsurance). The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of the year gross reserve (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. ($ in millions) Year Ended December 31, 2023 2022 Group Benefits Gross reserves, beginning of year $ 121.6 $ 125.4 Less: reinsurance recoverables 27.9 28.5 Net reserves, beginning of year (1) 93.7 96.9 Incurred claims and claim expenses: Claims occurring in the current year 73.6 77.7 Increase (decrease) in estimated reserves for claims occurring in prior years (2) (13.9) (10.9) Total claims and claim expenses incurred 59.7 66.8 Claims and claim expense payments for claims occurring during: Current year 33.8 35.0 Prior years 30.7 35.0 Total claims and claim expense payments 64.5 70.0 Net reserves, end of year 88.9 93.7 Plus: reinsurance recoverables 27.7 27.9 Gross reserves, end of year $ 116.6 $ 121.6 (1) Reserves are net of anticipated reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. Also, refer to the paragraphs below for additional information regarding prior years' reserve development recognized in 2023. The Company's Group Benefits has short-duration contracts that are generated from specialty health and group disability lines of business, and are accounted for based on actuarial estimates of the amount of loss inherent in that period’s claims, including losses incurred for which claims have not been reported. Short-duration contract loss estimates rely on actuarial observations of ultimate loss experience for similar historical events. The Company maintains loss reserves for these lines of business to cover its estimated liability for unpaid losses and loss adjustment expenses, where material, (including legal, other fees, and costs not associated with specific claims but related to the claims payment function) for reported and unreported claims incurred as of the end of each accounting period. These loss reserves are based on actuarial assumptions. Many factors could affect these reserves, including economic and social conditions, frequency and severity of claims, medical trends resulting from the influences of underlying cost inflation, changes in utilization and demand for medical services, and changes in doctrines of legal liability and damage awards in litigation. Therefore, the Company’s reserves are necessarily based on estimates, assumptions and analysis of historical experience. The Company’s results depend upon the variation between actual claims experience and the assumptions used in determining reserves and pricing products. Reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that will be paid for actual claims or the timing of those payments. The Company's estimate of loss represents management's best estimate of the Company's liability at the reporting date. The Company believes that its liability for policy benefits and claims is reasonable and adequate to satisfy its ultimate liability. The Company primarily uses its own loss development experience, but will also supplement that with data from its outside actuaries, reinsurers and industry loss experience as warranted. To illustrate the impact that loss ratios have on the Company’s loss reserves and related expenses, each hypothetical 1% change in the loss ratio for the health business (i.e., the ratio of insurance benefits, claims and settlement expenses to earned health premiums) for the year ended December 31, 2023, would increase reserves (in the case of a higher ratio) or decrease reserves (in the case of a lower ratio) by approximately $0.8 million pretax with a corresponding increase or decrease to Benefits, claims and settlement expenses in the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss). For the specialty health line of business, IBNR claims liabilities plus expected development on reported claims are calculated using standard actuarial methods and practices. The “primary” assumption in the determination of specialty health reserves is that historical claim development patterns are representative of future claim development patterns. Factors that may affect this assumption include changes in claim payment processing times and procedures, changes in time delay in submission of claims, and the incidence of unusually large claims. Liabilities for claims for specialty health coverages are computed using completion factors and expected net loss ratios derived from actual historical premium and claim data. The reserving analysis includes a review of claim processing statistical measures and large claim early notifications; the potential impacts of any changes in these factors are not material. The Company has business that is serviced by third-party administrators. From time to time, there are changes in the timing of claims processing due to any number of factors including, but not limited to, system conversions and staffing changes during the year. These changes are monitored by the Company and the effects of these changes are taken into consideration during the claim reserving process. While these calculations are based on standard methodologies, they are estimates based on historical patterns. To the extent that actual claim payment patterns differ from historical patterns, such estimated reserves may be redundant or inadequate. The effects of such deviations are evaluated by considering claim backlog statistics and reviewing the reasonableness of projected claim ratios. Other factors which may affect the accuracy of policy benefits and claim estimates include the proportion of large claims which may take longer to adjudicate, changes in billing patterns by providers and changes in claim management practices such as hospital bill audits. Since the Company's analysis considers a variety of outcomes related to these factors, the Company does not believe that any reasonably likely change in these factors will have a material effect. With regards to the Company’s group disability line of business, the two “primary” assumptions on which disability policy benefits and claims are based are: (i) morbidity levels; and (ii) recovery rates. If morbidity levels increase, for example due to an epidemic or a recessionary environment, the Company would increase reserves because there would be more new claims than expected. With regards to the assumed recovery rate, if disabled lives recover more quickly than anticipated then the existing claims reserves would be reduced; if less quickly, the existing claims reserves would be increased. Advancements in medical treatments could affect future recovery, termination, and mortality rates. In 2023, Group Benefits had net favorable prior years' reserve development of $13.9 million which was primarily the result of favorable loss trends in specialty health and group disability for loss years 2022 and prior. Below is the average annual percentage payout of incurred claims by age for Group Benefits, also referred to as a history of claims duration: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty health 74.1 % 24.5 % 0.9 % 0.2 % 0.2 % 0.1 % — — — — Group disability 29.3 % 32.4 % 9.7 % 4.0 % 3.4 % 3.1 % 3.0 % 2.5 % 2.1 % 1.8 % The following tables illustrate the incurred and paid claims development by accident year on a net basis for the lines of specialty health and group disability. Conditions and trends that have affected the development of these reserves in the past will not necessarily reoccur in the future. It may not be appropriate to use this cumulative history in the projection of future performance. The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as unaudited supplementary information. ($ in millions) Specialty Health Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 59.6 $ 56.3 $ 55.9 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ — 337,987 2015 33.3 30.9 30.3 30.3 30.3 30.4 30.4 30.4 30.4 — 183,433 2016 12.5 11.2 11.1 11.1 11.1 11.1 11.1 11.1 — 67,274 2017 10.6 9.7 9.6 9.6 9.6 9.6 9.6 — 63,492 2018 12.9 13.2 13.0 12.7 12.6 12.6 — 95,218 2019 10.6 9.5 9.6 9.5 9.5 — 72,754 2020 6.8 5.8 5.7 5.7 — 43,609 2021 22.8 17.7 16.1 2.4 72,407 2022 22.6 18.0 1.3 120,965 2023 16.0 7.1 79,654 Total $ 185.0 ($ in millions) Specialty Health Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 43.4 $ 54.9 $ 55.4 $ 55.7 $ 55.9 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 2015 24.9 30.4 30.3 30.3 30.3 30.4 30.4 30.4 30.4 2016 5.5 11.0 11.1 11.1 11.1 11.1 11.1 11.1 2017 7.3 9.4 9.6 9.6 9.6 9.6 9.6 2018 8.8 12.1 12.5 12.6 12.6 12.6 2019 7.5 9.3 9.5 9.5 9.5 2020 4.2 5.6 5.7 5.7 2021 2.9 12.9 13.7 2022 10.5 16.7 2023 8.8 Total 174.1 Outstanding prior to 2014 — Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 10.9 ($ in millions) Group Disability Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 16.3 $ 13.3 $ 14.8 $ 14.4 $ 14.3 $ 14.5 $ 14.7 $ 14.3 $ 14.6 $ 14.5 $ — 2,863 2015 25.3 19.2 16.6 14.7 14.6 15.2 15.2 14.7 14.5 — 3,347 2016 28.5 28.6 27.4 26.0 26.3 26.8 28.1 28.1 0.7 3,618 2017 29.9 26.0 22.9 22.4 23.3 24.0 23.1 0.1 3,904 2018 29.8 26.6 23.2 22.7 23.3 23.6 0.3 4,171 2019 34.5 33.5 30.2 29.9 30.2 0.5 4,549 2020 36.7 34.3 34.1 33.2 0.6 4,343 2021 37.8 41.3 41.3 2.0 5,109 2022 39.2 32.0 (0.5) 4,349 2023 40.3 13.2 3,510 Total $ 280.8 ($ in millions) Group Disability Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 3.7 $ 8.5 $ 9.9 $ 10.6 $ 11.1 $ 11.7 $ 12.1 $ 12.4 $ 12.7 $ 12.9 2015 6.8 14.0 16.6 17.2 17.6 18.1 18.6 18.9 19.1 2016 8.3 16.4 19.3 20.3 21.1 21.8 22.4 22.9 2017 8.5 16.1 17.9 18.3 18.9 19.4 19.7 2018 8.4 16.1 18.0 18.9 19.6 20.1 2019 11.8 22.8 24.3 24.7 25.2 2020 12.4 22.7 25.5 26.4 2021 11.8 24.0 26.7 2022 11.7 21.4 2023 12.2 Total 206.6 Outstanding prior to 2014 9.0 Prior years paid 100.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 83.2 Effect of discounting (14.0) Discounted net reserves $ 69.2 Reconciliation of Net Incurred and Paid Claims Development Tables for Property & Casualty and Group Benefits to Unpaid Claims and Claim Expense Reserves in the Consolidated Balance Sheet (2022 recast for the adoption of LDTI) ($ in millions) Year Ended December 31, 2023 2022 Property & Casualty and Group Benefits Net reserves Homeowners $ 73.4 $ 61.0 Auto liability 200.9 192.5 Auto physical damage 11.0 10.6 Specialty health 10.9 16.9 Group disability 83.2 69.0 Other than short duration lines 11.0 10.5 Total net reserves for unpaid claims and claim adjustment expenses, net of reinsurance 390.4 360.5 Reinsurance recoverable on unpaid claims Homeowners 2.2 (4.4) Auto liability 96.6 97.6 Specialty health 0.2 0.2 Group disability 25.0 25.6 Other short duration lines 14.9 20.0 Total reinsurance recoverable on unpaid claims 138.9 139.0 Insurance lines other than short duration (1) 41.1 43.5 Unallocated claims adjustment expenses 11.3 21.0 Total other than short duration and unallocated claims adjustment expenses 52.4 64.5 Gross reserves, end of year (1) $ 581.7 $ 564.0 (1) This line includes Life & Retirement and Supplemental reserves included in the Consolidated Balance Sheet. |
Long-Duration Insurance Contrac
Long-Duration Insurance Contracts | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Long-Duration Insurance Contracts | Long-Duration Insurance Contracts Liability for Future Policy Benefits As of and for the years ended December 31, 2023, 2022, and 2021 the Company updated the net premium ratio when updating for actual historical experience for each year; future cash flow assumptions were also reviewed and updated. The following tables summarize balances and changes in LFPB for traditional and limited-payment contracts. The balances of and changes in LFPB as of and for the year ended December 31, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at January 1, 2023 $ 215.1 $ 234.7 $ 68.3 $ 29.7 $ 167.4 $ — January 1, 2023 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (16.8) 3.7 (0.2) 6.5 — Actual variances from expected experience 3.8 (2.7) 0.7 1.0 (1.6) — Adjusted balance at January 1, 2023 249.7 245.9 69.9 33.2 210.0 — Issuances (3) 10.8 25.2 — 4.3 19.4 5.6 Interest accruals (4) 7.2 10.3 3.7 1.2 6.0 — Net premiums collected (5) (20.6) (24.8) (6.6) (4.8) (22.0) (5.6) December 31, 2023 balance at original discount rate 247.1 256.6 67.0 33.9 213.4 — Effect of changes in discount rate assumptions (23.9) (16.6) 4.7 (1.7) (31.4) — Balance at December 31, 2023 223.2 240.0 71.7 32.2 182.0 — Present value of expected future policy benefits: Balance at January 1, 2023 493.6 347.0 867.5 79.4 431.7 103.3 January 1, 2023 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of: Changes in cash flow assumptions (0.6) (16.7) 5.0 (0.2) 8.9 — Actual variances from expected experience 4.0 1.3 1.1 1.0 (2.4) (0.8) Adjusted balance at January 1, 2023 585.3 385.6 811.3 99.4 543.6 112.6 Issuances 10.7 25.8 — 4.3 19.4 6.3 Interest accruals 19.0 15.2 47.4 3.9 14.4 4.4 Benefit payments (6) (22.9) (21.2) (61.2) (2.0) (59.5) (11.9) December 31, 2023 balance at original discount rate 592.1 405.4 797.5 105.6 517.9 111.4 Effect of changes in discount rate assumptions (70.1) (35.3) 85.5 (16.0) (90.3) (7.2) Balance at December 31, 2023 522.0 370.1 883.0 89.6 427.6 104.2 Net liability for future policy benefits 298.8 130.2 811.3 57.4 245.6 104.2 Less: Reinsurance recoverable (64.3) (19.1) (1.0) (1.2) (4.0) (3.6) Net liability for future policy benefits, after reinsurance recoverable 234.5 111.1 810.3 56.2 241.6 100.6 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at December 31, 2023 $ 234.5 $ 111.1 $ 810.3 $ 56.2 $ 241.6 $ 100.6 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2023, the net LFPB for Supplemental Health was $92.7 million for cancer, $21.4 million for accident, $23.5 million for disability and $104.0 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present Value of Expected Net Premiums Balance at January 1, 2022 (7) $ 260.7 $ 264.4 $ 74.6 $ 29.7 $ 226.7 $ — January 1, 2022 balance at original discount rate (7) 239.3 235.4 55.9 27.2 223.1 — Effect of: Change in cash flow assumptions 5.2 18.7 9.1 2.0 12.2 — Actual variances from expected experience 7.2 (4.2) 3.0 1.6 (25.3) — Adjusted balance at January 1, 2022 251.7 249.9 68.0 30.8 210.0 — Issuances (3) 12.5 28.0 — 6.3 12.0 5.3 Interest accruals (4) 6.7 9.0 3.3 1.1 5.9 — Net premiums collected (5) (25.0) (21.5) (5.8) (5.8) (22.8) (5.3) December 31, 2022 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of changes in discount rate assumptions (30.8) (30.7) 2.8 (2.7) (37.7) — Balance at December 31, 2022 215.1 234.7 68.3 29.7 167.4 — Present Value of Expected Future Policy Benefits Balance at January 1, 2022 (7) 660.4 411.5 1,172.7 102.9 590.6 129.1 January 1, 2022 balance at original discount rate (7) 566.1 360.0 802.6 86.6 584.2 115.7 Effect of: Changes in cash flow assumptions 5.2 21.5 11.0 2.0 13.8 — Actual variances from expected experience 7.7 (4.7) 3.6 1.4 (30.0) 0.4 Adjusted balance at January 1, 2022 579.0 376.8 817.2 90.0 568.0 116.1 Issuances 12.4 28.3 — 6.4 12.0 5.3 Interest accruals 18.0 14.4 47.4 3.4 15.0 4.3 Benefit payments (6) (27.5) (18.5) (59.4) (1.2) (57.9) (12.3) December 31, 2022 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of changes in discount rate assumptions (88.3) (54.0) 62.3 (19.2) (105.4) (10.1) Balance at December 31, 2022 493.6 347.0 867.5 79.4 431.7 103.3 Net liability for future policy benefits 278.4 112.2 799.3 49.6 264.4 103.3 Less: Reinsurance recoverable (63.1) (15.3) (0.8) — (3.4) (3.2) Net liability for future policy benefits, after reinsurance recoverable 215.3 96.9 798.5 49.6 261.0 100.1 Impact of flooring on net liability for future policy benefits 1.1 0.2 — — — — Net liability for future policy benefits at December 31, 2022 $ 216.4 $ 97.1 $ 798.5 $ 49.6 $ 261.0 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. (7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022. The balances of and changes in LFPB (including a summary of the balance and changes in the LFPB on January 1, 2021 due to adoption of ASU 2018-12) as of and for the year ended December 31, 2021 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Change in cash flow assumptions, effect of decrease of the DPL — — — — — — Adjustment for removal of related balances in AOCI — — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 Present Value of Expected Net Premiums Balance at January 1, 2021 $ 176.5 $ 244.1 $ 78.0 $ 25.4 $ 233.0 $ — January 1, 2021 balance at original discount rate 143.5 200.8 55.2 22.0 218.2 — Effect of: Change in cash flow assumptions 2.4 (4.5) (3.3) — (1.8) — Actual variances from expected experience 8.8 6.9 6.3 1.0 6.3 — Adjusted balance at January 1, 2021 154.7 203.2 58.2 23.0 222.7 — Issuances (3) 13.3 29.8 — 10.2 13.0 3.7 Interest accruals (4) 6.2 7.9 3.2 0.8 5.9 — Net premiums collected (5) (16.6) (19.8) (5.6) (6.8) (24.1) (3.7) December 31, 2021 balance at original discount rate 157.6 221.1 55.8 27.2 217.5 — Effect of changes in discount rate assumptions 25.4 32.0 18.8 2.5 4.0 — Balance at December 31, 2021 183.0 253.1 74.6 29.7 221.5 — Present Value of Expected Future Policy Benefits Balance at January 1, 2021 507.1 364.7 1,269.3 95.0 626.9 136.5 January 1, 2021 balance at original discount rate 362.5 294.0 813.5 73.4 589.1 115.9 Effect of: Changes in cash flow assumptions 2.8 (4.8) (3.6) — (3.0) — Actual variances from expected experience 8.7 7.2 6.6 1.1 6.2 (0.4) Adjusted balance at January 1, 2021 374.0 296.4 816.5 74.5 592.3 115.5 Issuances 13.3 29.8 — 10.2 13.0 3.7 Interest accruals 17.1 12.0 47.9 2.9 15.7 4.5 Benefit payments (6) (18.1) (18.7) (61.9) (1.0) (48.4) (12.1) December 31, 2021 balance at original discount rate 386.3 319.5 802.5 86.6 572.6 111.6 Effect of changes in discount rate assumptions 114.4 51.1 370.2 16.3 8.0 13.1 Balance at December 31, 2021 500.7 370.6 1,172.7 102.9 580.6 124.7 Net liability for future policy benefits 317.7 117.6 1,098.1 73.2 359.1 124.7 Less: Reinsurance recoverable (0.5) (5.5) (1.1) (0.2) — — Net liability for future policy benefits, after reinsurance recoverable $ 317.2 $ 112.1 $ 1,097.0 $ 73.0 $ 359.1 $ 124.7 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2021, the net LFPB for Supplemental Health was $140.8 million for cancer, $28.7 million for accident, $29.3 million for disability and $160.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets: ($ in millions) December 31, 2023 December 31, 2022 Whole life $ 298.8 $ 279.5 Term life 130.2 112.4 Experience life 811.3 799.3 Limited-pay whole life 57.4 49.6 Supplemental health 245.6 264.4 SPIA (life contingent) 104.2 103.3 Limited-pay whole life DPL 4.1 3.2 SPIA (life contingent) DPL 1.3 0.8 Reconciling items (1) 108.9 105.5 Total $ 1,761.8 $ 1,718.0 (1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves. The following tables summarize the amount of revenue from gross premiums or assessment and interest expense related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): ($ in millions) Gross premiums or assessments Year Ended December 31, 2023 2022 Whole life $ 28.1 $ 25.9 Term life 45.2 42.4 Experience life 32.1 33.5 Limited-pay whole life 7.2 8.1 Supplemental health 120.3 121.2 SPIA (life contingent) 6.1 5.7 Total $ 239.0 $ 236.8 ($ in millions) Interest expense Year Ended December 31, 2023 2022 Whole life $ 11.8 $ 11.3 Term life 4.8 4.4 Experience life 43.7 44.2 Limited-pay whole life 2.6 2.4 Supplemental health 8.4 9.1 SPIA (life contingent) 4.4 4.4 Total $ 75.7 $ 75.8 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts: ($ in millions) As of December 31, 2023 As of Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 478.8 $ 325.0 $ 469.0 $ 322.5 Expected future benefits and expenses 1,152.8 592.1 1,121.4 580.4 Term life Expected future gross premiums 689.0 449.4 739.3 464.2 Expected future benefits and expenses 682.7 405.4 678.0 401.0 Experience Life Expected future gross premiums 530.0 296.1 569.6 315.5 Expected future benefits and expenses 1,703.1 797.5 1,755.4 805.2 Limited-pay whole life Expected future gross premiums 64.7 49.1 60.8 46.5 Expected future benefits and expenses 244.9 105.6 226.8 98.6 Supplemental health Expected future gross premiums 1,624.1 1,192.5 1,640.5 1,214.9 Expected future benefits and expenses 719.4 517.9 730.7 537.1 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 156.1 111.4 157.7 113.4 For the year ended December 31, 2023 and 2022, net premiums exceeded gross premiums for several cohorts in the Whole Life and Term Life product lines. This resulted in an immaterial change to current period benefit expense for both years. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: December 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.7% 1.6 % 0.2 % N.M. Expected experience 0.7 % 0.1% - 2.3% 1.6 % 0.3 % N.M. Lapses Actual experience 3.4 % 5.3% - 13.0% 3.2 % 4.2 % N.M. Expected experience 4.8 % 5.8% - 36.8% 3.1 % 5.4 % N.M. December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.3% 1.6 % 0.3 % N.M. Expected experience 0.7 % 0.1% - 1.0% 1.4 % 0.2 % N.M. Lapses Actual experience 3.2 % 5.7% - 58.1% 3.3 % 3.8 % N.M. Expected experience 5.9 % 6.6% - 9.8% 3.2 % 7.6 % N.M. The following table provides the weighted-average durations of LFPB, in years: As of December 31, 2023 2022 Whole life 18.0 18.3 Term life 16.7 16.8 Experience life 10.3 10.6 Limited-pay whole life 22.1 22.9 Supplemental health 10.7 10.1 SPIA (life contingent) 7.6 7.7 The following table provides ranges of the weighted-average interest rates for LFPB: As of December 31, 2023 2022 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 4.9% Current discount rate 4.4% - 5.0% 4.7% - 5.3% Term life Interest accretion rate 4.2% - 4.3% 4.1% -4.3% Current discount rate 4.9% - 5.0% 5.3% - 5.3% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.0 % 5.3 % Limited-pay whole life Interest accretion rate 4.0 % 3.9 % Current discount rate 5.1 % 5.3 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.0% - 5.2% 5.3% - 5.5% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.0% Current discount rate 4.9% - 4.9% 5.2% - 5.2% Liability for Policyholders' Account Balances The Company recognizes a liability for policyholders' account balances. The following tables summarize balances of and changes in policyholders' account balances: ($ in millions) Year Ended December 31, 2023 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2023 $ 47.6 $ 64.3 $ 4,591.1 $ 510.3 $ 34.4 Premiums received (1) $ 13.6 $ (0.8) $ 236.3 $ 20.1 $ 3.4 Surrenders and withdrawals (2) (1.1) (3.7) (391.8) (67.0) (0.4) Benefit payments (3) — (1.7) (75.1) (3.1) (5.9) Net transfers from (to) separate account (0.6) — 23.7 (8.2) — Interest credited (4) 1.5 3.1 162.0 5.3 1.0 Other (3.2) — 9.8 (8.4) 0.1 Balance at December 31, 2023 $ 57.8 $ 61.2 $ 4,556.0 $ 449.0 $ 32.6 Weighted-average crediting rate 2.8 % 5.0 % 3.6 % 1.1 % 3.1 % Net amount at risk (5) $ — $ — $ 35.9 $ — $ — Cash surrender value $ 40.5 $ 60.5 $ 4,507.5 $ 439.9 $ 32.3 ($ in millions) Year Ended December 31, 2022 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2022 $ 39.1 $ 66.2 $ 4,532.7 $ 522.6 $ 37.7 Premiums received (1) $ 11.8 $ (0.3) $ 209.4 $ 32.4 $ 2.4 Surrenders and withdrawals (2) (1.0) (3.0) (281.5) (40.4) (0.5) Benefit payments (3) — (1.8) (65.9) (4.1) (6.3) Net transfers from (to) separate account — — 40.5 (2.5) — Interest credited (4) 0.8 3.2 156.0 3.3 1.1 Other (3.1) — (0.1) (1.0) — Balance at December 31, 2022 $ 47.6 $ 64.3 $ 4,591.1 $ 510.3 $ 34.4 Weighted-average crediting rate 1.9 % 5.0 % 3.5 % 0.6 % 3.0 % Net amount at risk (5) $ — $ — $ 83.9 $ — $ — Cash surrender value $ 30.9 $ 63.6 $ 4,535.2 $ 496.3 $ 34.1 (1) Premiums received represents premiums collected from policyholder during the period of in force business (2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (4) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets: ($ in millions) December 31, 2023 December 31, 2022 Indexed universal life $ 57.8 $ 47.6 Experience Life 61.2 64.3 Fixed account annuities 4,556.0 4,591.1 Fixed indexed account annuities 449.0 510.3 SPIA (non-life contingent) 32.6 34.4 Reconciling items (1) 30.4 12.9 Total $ 5,187.0 $ 5,260.6 (1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs. The following tables present the gross account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: ($ in millions) December 31, 2023 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 36.7 $ 159.8 $ 489.4 $ 200.2 $ 886.1 Equal to 2% but less than 3% 162.9 77.9 65.8 76.1 382.7 Equal to 3% but less than 4% 571.3 36.9 0.7 — 609.0 Equal to 4% but less than 5% 2,670.5 — — — 2,670.5 5% or higher 86.9 — — — 86.9 Total $ 3,528.3 $ 274.6 $ 555.9 $ 276.3 $ 4,635.2 ($ in millions) December 31, 2022 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 262.5 $ 370.6 $ 214.4 $ 96.1 $ 943.6 Equal to 2% but less than 3% 256.1 19.8 4.7 — 280.6 Equal to 3% but less than 4% 667.4 0.4 0.4 — 668.2 Equal to 4% but less than 5% 2,706.1 — — — 2,706.1 5% or higher 91.7 — — — 91.7 Total $ 3,983.8 $ 390.8 $ 219.5 $ 96.1 $ 4,690.2 (1) Excludes products not containing a fixed guaranteed minimum crediting rate. Separate Account Liabilities Separate account assets and liabilities consist of investment accounts established and maintained by the Company for certain variable contracts. Some of these variable contracts include minimum guarantees such as GMDBs that guarantee a minimum payment to the policyholder in the event of death. The assets that support variable contracts are measured at fair value and are reported as separate account assets on the Consolidated Balance Sheets. An equivalent amount is reported as separate account liabilities. MRB assets and liabilities for minimum guarantees are valued and presented separately from separate account assets and separate account liabilities. MRBs are discussed further in the market risk benefits section of this Note to the Consolidated Financial Statements. Policy charges assessed against the policyholders for mortality, administration and other services are included in the life premiums and contract charges line item on the Consolidated Statements of Operations and Comprehensive Income (Loss). The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets (1) : ($ in millions) Retirement Services Variable Account Annuities December 31, 2023 December 31, 2022 Balance, beginning of year $ 2,792.3 $ 3,441.0 Deposits 234.2 240.3 Withdrawals (213.4) (186.8) Net transfers (15.5) (38.1) Fees and charges (37.6) (36.8) Market appreciation (depreciation) 541.5 (619.7) Other (7.4) (7.6) Balance, end of period $ 3,294.1 $ 2,792.3 (1) The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Market Risk Benefits The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the year ended December 31, 2023 and 2022, respectively: ($ in millions) Year Ended December 31, 2023 2022 Balance, beginning of period $ 0.3 $ 4.8 Balance, beginning of period, before effects of changes in the instrument-specific credit risk — 2.0 Changes in market risk benefits (1) (4.5) (2.0) Balance, end of period (2) $ (4.5) $ — Effect of changes in the instrument-specific credit risk 0.6 0.3 Balance, end of period $ (3.9) $ 0.3 Net amount at risk (3) $ 20.5 $ 55.3 Weighted-average attained age of contract holders 62 61 (1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets. ($ in millions) As of December 31, 2023 As of December 31, 2022 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (6.7) $ 2.8 $ (3.9) $ (4.4) $ 4.7 $ 0.3 DAC and Deferred Sales Inducements The following tables roll-forward DAC for the periods indicated: ($ in millions) Year Ended December 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 Capitalizations 2.7 5.8 0.3 1.1 2.5 2.9 15.0 Amortization expense (1.2) (3.1) (0.4) (0.3) (1.0) (0.6) (14.7) Experience adjustment (0.1) (0.1) — (0.1) (0.1) (0.3) (7.4) Balance, end of period $ 22.3 $ 32.6 $ 5.7 $ 7.4 $ 16.8 $ 8.2 $ 214.0 ($ in millions) Year Ended December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of year $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 Capitalizations 3.0 5.0 0.2 1.4 2.5 1.8 15.5 Amortization expense (1.2) (2.5) (0.4) (0.3) (0.8) (0.5) (15.8) Experience adjustment — — — — — — (1.9) Balance, end of year $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 ($ in millions) Year Ended December 31, 2021 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 Capitalizations 2.4 4.2 0.2 1.5 1.7 1.1 17.3 Amortization expense (1.1) (2.3) (0.4) (0.3) (0.8) (0.5) (16.0) Experience adjustment — — — — (0.1) — (1.1) Balance, end of year December 31, 2021 $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: ($ in millions) December 31, 2023 December 31, 2022 Whole life $ 22.3 $ 20.9 Term life 32.6 30.0 Experience life 5.7 5.8 Limited pay whole life 7.4 6.7 Indexed universal life 16.8 15.4 Supplemental health 8.2 6.2 Total annuities 214.0 221.1 Reconciling item (1) 29.3 24.5 Total $ 336.3 $ 330.6 (1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. The assumptions used to amortize DAC were consistent with the assumptions used to estimate LFPB for traditional and limited-payment contracts. The underlying assumptions for DAC and LFPB were updated at the same time. Quarterly, the Company conducts a review of all significant assumptions. In the third quarter of 2023, the annuity lapse assumption was revised upward to reflect emerging experience. In the fourth quarter of 2023, the annuity mortality and annuitization assumptions and the life insurance mortality and lapse assumptions were revised as part of the annual assumption update process. The following table rolls-forward the deferred sales inducements balance as of and for the years ended December 31, 2023 and 2022: ($ in millions) Year Ended December 31, 2023 Year Ended December 31, 2022 Balance, beginning of period $ 15.9 $ 17.3 Capitalizations — — Amortization expense (1.0) (1.2) Experience adjustment (0.8) (0.2) Balance, end of period $ 14.1 $ 15.9 |
Reinsurance and Catastrophes
Reinsurance and Catastrophes | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Reinsurance and Catastrophes | Reinsurance and Catastrophes In the normal course of business, the Company's insurance subsidiaries assume and cede reinsurance with other insurers. Reinsurance is ceded primarily to limit losses from large events and to permit recovery of a portion of direct losses; however, such a transfer does not relieve the originating insurance company of primary liability. The Company is a national underwriter and therefore has exposure to catastrophic losses in certain coastal states and other regions throughout the U.S. Catastrophes can be caused by various events including hurricanes, windstorms, hail, severe winter weather, wildfires and earthquakes, and the frequency and severity of catastrophes are inherently unpredictable. The financial impact from catastrophic losses results from both the total amount of insured exposure in the area affected by the catastrophe as well as the severity of the event. The Company seeks to reduce its exposure to catastrophe losses through the geographic diversification of its insurance coverage, deductibles, maximum coverage limits and the purchase of catastrophe reinsurance. The Company's catastrophe losses incurred were approximately $97.6 million, $80.0 million and $78.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. For 2023, catastrophe losses included winter storm, wind, hail, and tornado events. The total amounts of reinsurance recoverable on unpaid insurance reserves classified as assets and included in the amounts being reported as Reinsurance balances receivable in the Consolidated Balance Sheets were as follows: ($ in millions) December 31, 2023 2022 Reinsurance recoverables on reserves and unpaid claims Property & Casualty Reinsurance companies $ 7.4 $ 3.1 State insurance facilities 96.6 97.7 Group benefits 306.2 352.4 Life and health 14.0 9.3 Total $ 424.2 $ 462.5 As of December 31, 2023, the Company had a reinsurance recoverable in the amount of $181.0 million from National Guardian Life Insurance Company (NGL) that exceeded 10.0% of consolidated shareholders' equity as of the reporting date. NGL currently has an assigned credit rating of A by A.M. Best. The Company recognizes the cost of reinsurance premiums over the contract periods for such premiums in proportion to the insurance protection provided. Amounts recoverable from reinsurers for unpaid claims and claim settlement expenses, including estimated amounts for unsettled claims, IBNR claims and policy benefits, are estimated in a manner consistent with the insurance liability associated with the policy. The effects of reinsurance on premiums written and contract deposits; premiums and contract charges earned; and benefits, claims and settlement expenses were as follows (2022 recast for the adoption of LDTI): ($ in millions) Gross Ceded to Other Companies (1) Assumed Net Year Ended December 31, 2023 Net premiums written and contract deposits (2) $ 1,583.6 $ 67.9 $ 36.9 $ 1,552.6 Net premiums and contract charges earned 1,097.7 76.3 35.7 $ 1,057.1 Benefits, claims and settlement expenses 803.6 45.7 11.2 $ 769.1 Year Ended December 31, 2022 Net premiums written and contract deposits (2) 1,499.0 62.9 53.0 $ 1,489.1 Net premiums and contract charges earned 1,046.7 72.0 53.0 $ 1,027.7 Benefits, claims and settlement expenses 772.5 43.5 18.0 $ 747.0 Year Ended December 31, 2021 Net premiums written and contract deposits (2) 1,373.6 23.1 9.4 $ 1,359.9 Net premiums and contract charges earned 912.4 33.3 9.7 $ 888.8 Benefits, claims and settlement expenses 592.3 7.8 6.2 $ 590.7 (1) Excludes the annuity reinsurance agreement accounted for using the deposit method that is discussed in Note 8. (2) This measure is not based on accounting principles generally accepted in the United States of America (non-GAAP). An explanation of this non-GAAP measure is contained in the Glossary of Selected Terms included as an exhibit in the Company's reports filed with the SEC. There were no losses from uncollectible reinsurance recoverables in the three years ended December 31, 2023. Past due reinsurance recoverables as of December 31, 2023 were not material. The Company maintains property and casualty catastrophe excess of loss reinsurance coverage. For 2023, the Company's catastrophe excess of loss coverage consisted of one contract in addition to a minimal amount of coverage by the Florida Hurricane Catastrophe Fund (FHCF). For 2023, the catastrophe excess of loss contract consisted of three layers of which provided for one mandatory reinstatement. The coverage provided was 57% for the layer of $20.0 million excess of $30.0 million, 92% coverage for the layer of $40.0 million excess of $50.0 million and 95% coverage for the layer of $85.0 million excess of $90.0 million. For 2024, our retention will increase to $35.0 million and the catastrophe excess of loss reinsurance coverage will provide 89% coverage for the layer of $25.0 million excess of $35.0 million, 90% coverage for the layer of $35.0 million excess of $60.0 million, and 92% coverage for the layer of $90.0 million excess of $95.0 million. For liability coverages, in 2023, the Company reinsured each loss above a retention of $5.0 million per occurrence up to $20.0 million in a clash event. A clash cover is a reinsurance casualty excess contract requiring two or more casualty coverages or policies issued by the Company to be involved in the same loss occurrence for coverage to apply. The maximum individual life insurance risk retained by the Company is $0.5 million on any individual life, while either $0.1 million or $0.125 million is retained on each group life policy depending on the type of coverage. Excess amounts are reinsured. The Company also maintains a life catastrophe reinsurance program. For 2023, the Company reinsured 100% of the catastrophe risk in excess of $1.0 million up to $35.0 million per occurrence, with one reinstatement. The Company's life catastrophe risk reinsurance program covers acts of terrorism and includes nuclear, biological and chemical explosions but excludes other acts of war. With regards to worksite direct insurance products, the Company retains all of the risk on its supplemental health product lines, including accidental death risk embedded within certain products. However, the Company’s other accidental death and dismemberment risk issued through all other policies and riders are ceded 100%. With regards to employer-sponsored products, the Company has retained approximately 72.4% of gross and assumed group disability and specialty health benefits in 2023. The Company has a block of individual life and annuity benefits that is effectively 100% ceded. The Company purchases quota share reinsurance and excess reinsurance in amounts deemed appropriate by its risk committee. The Company monitors its retention amounts by product line and has the ability to adjust retention as appropriate. |
Deposit Asset on Reinsurance
Deposit Asset on Reinsurance | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Deposit Asset on Reinsurance | Deposit Asset on Reinsurance The Company reinsures a $3.1 billion block of in force fixed and variable annuity business with a minimum crediting rate of 4.5%. The reinsured fixed business represents approximately 50% of the Company’s in force fixed annuity account balances. The arrangement contains investment guidelines and a trust to help meet the Company’s risk management objectives. Under the annuity reinsurance agreement, approximately $2.4 billion of fixed annuity reserves are reinsured on a coinsurance basis. The separate account assets and liabilities of approximately $0.7 billion are reinsured on a modified coinsurance basis and thus, remain on the Company's consolidated financial statements, but the related results of operations are fully reinsured. The annuity reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk. Therefore, the Company recognizes the annuity reinsurance agreement using the deposit method of accounting. The assets transferred to the reinsurer as consideration paid is reported as a Deposit asset on reinsurance on the Company's Consolidated Balance Sheets. As amounts are received or paid, consistent with the underlying reinsured contracts, the Deposit asset on reinsurance is adjusted. The Deposit asset on reinsurance is accreted to the estimated ultimate cash flows using the interest method and the adjustment is reported as Net investment income. Interest accreted on the Deposit asset on reinsurance was $104.9 million and $103.5 million for the years ended December 31, 2023 and 2022, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company conducts goodwill impairment testing at the reporting unit level at least annually or more frequently if events occur or circumstances change that indicate that the carrying amount may not be recoverable. See Note 1 for further description of impairment testing. At October 1, 2023, the Company performed a qualitative goodwill impairment test. Based on the results of the test, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. At October 1, 2022, the Company performed a quantitative goodwill impairment test. Based on the results of the test, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount with the exception of lower than anticipated BCG revenues which triggered an impairment of the goodwill associated with the BCG reporting unit within the Retirement operating segment. For the evaluation, the fair value of BCG was measured using a discounted cash flow method. The carrying amount exceeded the fair value, resulting in a $2.0 million goodwill impairment charge. At October 1, 2021, the Company performed a quantitative goodwill impairment test. Based on the results of the test, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill impairment charges are reported as Other expense - goodwill and intangible asset impairments in the Consolidated Statements of Operations and Comprehensive Income (Loss). The changes in the carrying amount of goodwill by reporting segment for the year ended December 31, 2023 were as follows: ($ in millions) Property & Casualty Life & Retirement Supplemental & Group Benefits Total Balance as of January 1, 2021 Goodwill $ 9.5 $ 48.0 $ 19.6 $ 77.1 Accumulated impairment losses — (33.6) — (33.6) Total goodwill, net 9.5 14.4 19.6 43.5 Acquisitions — — — — Impairments — — — — Balance as of December 31, 2021 Goodwill 9.5 48.0 19.6 77.1 Accumulated impairment losses — (33.6) — (33.6) Total goodwill, net 9.5 14.4 19.6 43.5 Acquisitions — — 12.8 12.8 Impairments — (2.0) — (2.0) Balance as of December 31, 2022 Goodwill 9.5 48.0 32.4 89.9 Accumulated impairment losses — (35.6) — (35.6) Total goodwill, net 9.5 12.4 32.4 54.3 Acquisitions — — — — Impairments — — — — Balance as of December 31, 2023 Goodwill 9.5 48.0 32.4 89.9 Accumulated impairment losses — (35.6) — (35.6) Total goodwill, net $ 9.5 $ 12.4 $ 32.4 $ 54.3 As of December 31, 2023, the outstanding amounts of definite-lived intangible assets subject to amortization are attributable to the acquisitions of BCG, BCGS and NTA during 2019 as well as the acquisition of Madison National during 2022. The acquisitions of BCG, BCGS, NTA and Madison National resulted in initial recognition of definite-lived intangible assets subject to amortization in the amounts of $9.1 million, $5.0 million, $160.4 million and $56.5 million, respectively. As of December 31, 2023 the outstanding amounts of definite-lived intangible assets subject to amortization were as follows: ($ in millions) Weighted Average Useful Life (in Years) At inception: Value of business acquired 28 $ 100.1 Value of distribution acquired 17 54.0 Value of agency relationships 14 17.0 Value of customer relationships 10 59.9 Total 20 231.0 Accumulated amortization and impairments: Value of business acquired (35.3) Value of distribution acquired (17.5) Value of agency relationships (9.8) Value of customer relationships (11.5) Total (74.1) Net intangible assets subject to amortization: $ 156.9 With regards to the definite-lived intangible assets in the table above, the VOBA intangible asset represents the present value of the expected underwriting profit within policies that were in force on the date of acquisition. The VODA intangible asset represents the present value of future business to be written by the existing agency force. The value of agency relationships intangible asset represents the present value of the commission overrides retained by NTA. The value of customer relationships intangible asset represents the present value of the expected profits from existing BCG and Madison National customers in force at the date of acquisition. All of the aforementioned definite-lived intangible assets were valued using the income approach. Estimated future amortization of the Company's definite-lived intangible assets were as follows: ($ in millions) Year Ending December 31, 2024 $ 14.5 2025 14.3 2026 14.2 2027 14.1 2028 14.1 Thereafter 85.7 Total $ 156.9 The VOBA intangible asset is being amortized by product based on the present value of future premiums to be received. The VODA intangible asset with respect to the acquisition of NTA is being amortized on a straight-line basis. The VODA intangible asset with respect to the acquisition of BCGS was being amortized based on the present value of future profits to be received but will be amortized on a straight-line basis subsequent to the reporting date. The value of agency relationships intangible asset is being amortized based on the present value of future premiums to be received. The value of customer relationships intangible assets are being amortized based on the present value of future profits to be received for BCG and based on the present value of future premiums for Madison National. Indefinite-lived intangible assets (not subject to amortization) as of December 31, 2023 were as follows: ($ in millions) Trade Names State Licenses Total Balance as of January 1, 2021 $ 7.9 $ 2.9 $ 10.8 Impairments — — — Acquisitions — — — Balance as of December 31, 2021 7.9 2.9 10.8 Impairments (0.3) — (0.3) Acquisitions — 2.9 2.9 Balance as of December 31, 2022 7.6 5.8 13.4 Impairments — — — Acquisitions — — — Balance as of December 31, 2023 $ 7.6 $ 5.8 $ 13.4 The trade names intangible asset represents the present value of future savings accruing to NTA, BCG and BCGS by virtue of not having to pay royalties for the use of the trade names, valued using the relief from royalty method. The state licenses intangible asset represents the regulatory licenses held by NTA and Madison National that were valued using the cost approach. The Company conducts intangible asset impairment testing at least annually, or more often if events, changes or circumstances indicate that the carrying amounts may not be recoverable. See Note 1 for further description of impairment testing. At October 1, 2023, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount. At October 1, 2022, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount with the exception of lower than anticipated BCG revenues which triggered a requirement to evaluate the intangible assets associated with BCG. For the evaluation, the fair value of BCG's intangible assets were measured using discounted cash flow methods. The carrying amounts for customer relationships and trade names exceeded their fair values resulting in a $2.5 million intangible asset impairment charge for customer relationships and a $0.3 million intangible asset impairment charge for trade names. At October 1, 2021, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount. Intangible asset impairment charges are reported as Other expense - goodwill and intangible asset impairments |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Indebtedness and scheduled maturities consisted of the following: ($ in millions) Interest Final December 31, 2023 2022 Short-term debt Revolving Credit Facility Variable 2026 $ — $ 249.0 Long-term debt (1) 7.25% 2023 Senior Notes, Aggregate principal amount of $300.0 less unaccrued discount of $0.5 and $0.0 and unamortized debt issuance costs of $2.8 and $0.0 7.25% 2028 296.7 — 4.50% 2015 Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.2 and $0.2 and unamortized debt issuance costs of $0.5 and $0.8 4.50% 2025 249.3 249.0 Total $ 546.0 $ 498.0 (1) The Company designates debt obligations as "long-term" based on maturity date at issuance. 2023 Senior Notes On September 15, 2023, the Company issued $300.0 million aggregate principal amount of 7.25% senior notes (2023 Senior Notes), which will mature on September 15, 2028, issued at a discount resulting in an effective yield of 7.29%. Interest on the 2023 Senior Notes is payable semi-annually at a rate of 7.25%. The 2023 Senior Notes are redeemable in whole or in part, at any time, at the Company's option, at a redemption price equal to the greater of (1) 100% of the principal amount of the notes being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted, on a semi-annual basis, at the Treasury yield (as defined in the indenture) plus 45 basis points, plus, in either of the above cases, accrued interest to the date of redemption. The net proceeds from the sale of the 2023 Senior Notes were used to fully repay the $249.0 million balance on the Revolving Credit Facility with remaining net proceeds from the sale to be used for general corporate purposes. 2015 Senior Notes As of December 31, 2023, the Company had outstanding $250.0 million aggregate principal amount of 4.50% Senior Notes (2015 Senior Notes), which will mature on December 1, 2025, issued at a discount resulting in an effective yield of 4.53%. Interest on the 2015 Senior Notes is payable semi-annually at a rate of 4.50%. Detailed information regarding the redemption terms of the 2015 Senior Notes is contained in the Part II - Item 8, Note 10 of the Consolidated Financial Statements in the Company's inter-document reference for the year ended December 31, 2022. The 2015 Senior Notes are traded in the open market (HMN 4.50). Credit Agreement with Financial Institutions (Revolving Credit Facility) In 2021, the Company, as borrower, amended its Credit Agreement (Revolving Credit Facility). The amended Revolving Credit Facility increased the amount available on the senior revolving credit facility from $225.0 million to $325.0 million. Terms and conditions of the amended Revolving Credit Facility are substantially consistent with the prior agreement, with an interest rate based on SOFR plus 115 basis points. The amended Revolving Credit Facility expires on July 12, 2026. The Company utilized $114.0 million of the Revolving Credit Facility to fund a portion of the acquisition of Madison National Life Insurance Company, Inc. that occurred effective January, 1 2022. The unused portion of the Revolving Credit Facility is subject to a variable commitment fee, which was 0.15% on an annual basis as of December 31, 2023. As noted above, the outstanding balance on the Revolving Credit Facility was fully paid off on September 15, 2023 from the proceeds of the 2023 Senior Notes. Federal Home Loan Bank Borrowings As of December 31, 2023, the Company had no borrowing outstanding with FHLB. The Board has authorized a maximum amount equal to 15% of net aggregate admitted assets less separate account assets of the insurance subsidiaries for FHLB borrowing and funding agreements which is below our maximum FHLB borrowing capacity. Covenants The Company is in compliance with all of the financial covenants contained in the 2015 Senior Notes indenture, the 2023 Senior Notes indenture and the Revolving Credit Facility agreement, consisting primarily of relationships of (1) debt to capital, (2) net worth, as defined in the financial covenants, (3) insurance subsidiaries' risk-based capital and (4) securities subject to funding agreements and repurchase agreements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax assets and liabilities included in Other assets and Other liabilities, respectively, in the Consolidated Balance Sheets were as follows (2022 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 Income tax (asset) liability Current $ (25.9) $ (18.8) Deferred 33.4 8.8 Deferred tax assets and liabilities are recognized for all future tax consequences attributable to "temporary differences" between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. There are no deferred tax liabilities that have not been recognized. The "temporary differences" that gave rise to the deferred tax balances were as follows (2022 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 Deferred tax assets Other comprehensive income - net unrealized losses on securities $ 82.1 $ 105.8 Unearned premium reserve reduction 13.3 10.1 Compensation accruals 9.3 8.4 Impaired securities 2.0 2.0 Other comprehensive income - net funded status of benefit plans 2.0 2.3 Discounting of unpaid claims and claim expense tax reserves 2.7 2.8 Capital loss carryforward 0.8 — Net operating loss carryforward 9.3 3.6 Intangibles 1.4 — Postretirement benefits other than pensions 0.2 0.2 Total gross deferred tax assets 123.1 135.2 Deferred tax liabilities Deferred policy acquisition costs 45.9 48.5 Life insurance future policy benefit reserve 46.4 42.4 Life insurance future policy benefit reserve (transitional rule) 4.3 6.4 Discounting of unpaid claims and claim expense tax reserves (transitional rule) 0.3 0.5 Investment related adjustments 44.8 29.9 Other comprehensive income - net reserve remeasurements 5.8 15.7 Other, net 9.0 0.6 Total gross deferred tax liabilities 156.5 144.0 Net deferred tax liability $ 33.4 $ 8.8 The Company evaluated sources and character of income, including historical earnings, loss carryback potential, taxable income from future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, and taxable income from prudent and feasible tax planning strategies. Although realization of deferred tax assets is not assured, the Company believes it is more likely than not that gross deferred tax assets will be fully realized and that a valuation allowance with respect to the realization of the total gross deferred tax assets was not necessary as of December 31, 2023 and 2022. The components of the provision for income tax expense (benefit) were as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) Years Ended December 31, 2023 2022 2021 Current $ 6.5 $ (0.7) $ 27.7 Deferred 1.8 (2.6) 12.0 Total income tax expense (benefit) $ 8.3 $ (3.3) $ 39.7 Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 21% for 2023, 2022 and 2021 to income before income taxes as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) Years Ended December 31, 2023 2022 2021 Expected federal tax on income $ 11.2 $ 3.5 $ 44.1 Add (deduct) tax effects of: Tax-exempt interest (2.7) (3.3) (3.9) Dividend received deduction (1.3) (3.2) (2.2) Employee share-based compensation 0.1 (0.5) (1.3) Contingent consideration — (0.3) — Compensation deduction limitation 0.8 0.7 1.5 Research and development reserve (0.2) (0.4) (0.2) Prior year adjustments 0.3 0.1 0.1 Other, net 0.1 0.1 1.6 Income tax expense (benefit) provided on income $ 8.3 $ (3.3) $ 39.7 The Company's federal income tax returns for years prior to 2020 are no longer subject to examination by the Internal Revenue Service (IRS). The Company recognizes tax benefits from tax return positions only if it is more likely than not the position will be sustainable, upon examination, on its technical merits and any relevant administrative practices or precedents. As a result, the Company applies a more likely than not recognition threshold for all tax uncertainties. The Company records liabilities for uncertain tax filing positions where it is more likely than not that the position will not be sustainable upon audit by taxing authorities. These liabilities are reevaluated routinely and are adjusted appropriately based upon changes in facts or law. The Company has no unrecorded liabilities from uncertain tax filing positions. HMEC and its subsidiaries file a consolidated federal income tax return. The federal income tax sharing agreements between HMEC and its subsidiaries, as approved by the Board, provide that tax on income is charged to each subsidiary as if it were filing a separate tax return with the limitation that each subsidiary will receive the benefit of any losses or tax credits to the extent utilized in the consolidated tax return. Intercompany balances are settled quarterly with a final settlement after filing the consolidated federal income tax return with the IRS. National Teachers Associates Life Insurance Company and NTA Life Insurance Company of New York are not included in HMEC's consolidated federal income tax return and will file separate federal income tax returns until they are eligible to participate in HMEC's consolidated federal income tax return. This is expected to occur in 2025. Unrecognized tax benefits were immaterial in each of the years ended December 31, 2023, 2022 and 2021. The Company classifies all tax related interest and penalties as income tax expense. Interest and penalties were both immaterial in each of the years ended December 31, 2023, 2022 and 2021. |
Shareholders' Equity and Share-
Shareholders' Equity and Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity and Share-Based Compensation | Share Repurchase Program and Treasury Shares On May 25, 2022, the Board of Directors authorized a share repurchase program allowing repurchases of up to $50 million (i.e., the 2022 Program) to begin following the completion of the $50 million repurchase plan which was authorized on September 30, 2015 (i.e., the 2015 Program). Both Programs authorize the repurchase of the Company's common shares in open market or privately negotiated transactions, from time to time, depending on market conditions. The Programs do not have expiration dates and may be limited or terminated at any time without notice. The 2015 Program was completed in July 2022 and the Company began repurchasing shares under the 2022 Program. During 2023, the Company repurchased 196,934 shares of its common stock, or 0.5% of the shares outstanding as of December 31, 2022, at an aggregate cost of $6.5 million, or an average price of $32.85 per share. During 2022, the Company repurchased 670,816 shares of its common stock, or 1.6% of the shares outstanding as of December 31, 2021, at an aggregate cost of $24.0 million, or an average price of $35.82 per share. In total and through December 31, 2023, 439,035 shares were repurchased under the Programs at an average price of $34.49 per share. The repurchase of shares was funded through use of cash. As of December 31, 2023, $34.9 million remained authorized for future share repurchases under the 2022 Program. As of December 31, 2023, the Company held 25,911,087 shares in treasury. Authorization of Preferred Stock In 1996, the shareholders of HMEC approved authorization of 1,000,000 shares of 0.001 par value preferred stock. The Board is authorized to (1) direct the issuance of the preferred stock in one or more series, (2) fix the dividend rate, conversion or exchange rights, redemption price and liquidation preference, of any series of the preferred stock, (3) fix the number of shares for any series and (4) increase or decrease the number of shares of any series. No shares of preferred stock were issued or outstanding as of December 31, 2023 and 2022. 2010 Comprehensive Executive Compensation Plan In 2010, the shareholders of HMEC approved the 2010 Comprehensive Executive Compensation Plan (the Comprehensive Plan). The purpose of the Comprehensive Plan is to aid the Company in attracting, retaining, motivating and rewarding employees and non-employee Directors; to provide for equitable and competitive compensation opportunities, including deferral opportunities; to encourage long-term service; to recognize individual contributions and reward achievement of Company goals; and to promote the creation of long-term value for the Company's shareholders by closely aligning the interests of plan participants with those of shareholders. The Comprehensive Plan authorizes share-based and cash-based incentives for plan participants. In 2012, the shareholders of HMEC approved the implementation of a fungible share pool under which grants of full value shares will count against the share limit as two and one half shares for every share subject to a full value award. In May 2021, the shareholders of HMEC approved an amendment and restatement of the Comprehensive Plan which included an increase of 2,500,000 in the number of shares of common stock reserved for issuance under the Comprehensive Plan. As of December 31, 2023, approximately 1,067,611 shares were available for grant under the Comprehensive Plan. Shares of common stock issued under the Comprehensive Plan may be either authorized and unissued shares of HMEC or shares that have been reacquired by HMEC; however, new shares have been issued historically. As further described in the paragraphs below, CSUs, stock options and RSUs under the Comprehensive Plan were as follows: December 31, 2023 2022 2021 CSUs related to deferred compensation for Directors 14,458 15,372 26,313 CSUs related to deferred compensation for employees 12,972 12,437 16,571 Stock options 1,402,514 1,194,352 1,032,128 RSUs related to incentive compensation 925,230 816,759 834,981 Total 2,355,174 2,038,920 1,909,993 Director Common Stock Units Deferred compensation for Directors is in the form of CSUs, which represent an equal number of common shares to be issued in the future. The outstanding units of Directors serving on the Board accrue dividends at the same rate as dividends paid to HMEC's shareholders. These dividends are reinvested into additional CSUs. Employee Common Stock Units Deferred compensation for employees is in the form of CSUs, which represent an equal number of common shares to be issued in the future. Distributions of employee deferred compensation are allowed to be either in common shares or cash. Through December 31, 2023, all distributions have been in cash. The outstanding units accrue dividends at the same rate as dividends paid to HMEC's shareholders. These dividends are reinvested into additional CSUs. Stock Options Options to purchase shares of HMEC common stock may be granted to executive officers, other employees and Directors. The options become exercisable in installments based on service generally beginning in the first year from the date of grant and generally become fully vested 4 years from the date of grant. The options generally expire 10 years from the date of grant. The exercise price of the option is equal to the market price of HMEC's common stock on the date of grant resulting in a grant date intrinsic value of $0. Changes in outstanding options were as follows: Weighted Average Range of Options Outstanding Vested and December 31, 2022 $39.41 $28.88-$42.95 1,194,352 766,444 Granted $35.62 $32.13-$35.98 209,028 — Vested $40.56 $38.99-$41.83 — 176,954 Exercised $28.88 $28.88-$28.88 (866) (866) Forfeited $— $— — — Expired $— $— — — December 31, 2023 $38.85 $28.88-$42.95 1,402,514 942,532 Option information segregated by ranges of exercise prices were as follows: December 31, 2023 Total Outstanding Options Vested and Exercisable Options Range of Options Weighted Weighted Options Weighted Weighted 28.88-32.35 213,890 $30.94 2.31 194,326 $30.82 1.60 35.98-38.99 388,544 $37.51 7.10 199,080 $38.96 5.12 40.10-42.95 800,080 $41.62 5.91 549,126 $41.87 5.19 Total 1,402,514 $38.85 5.69 942,532 $38.98 4.44 The weighted average exercise prices of vested and exercisable options as of December 31, 2022 and 2021 were $38.60 and $37.94, respectively. As of December 31, 2023, based on a closing stock price of $32.70 per share, the aggregate intrinsic (in-the-money) values of vested options and all options outstanding were $0.4 million and $0.4 million, respectively. Restricted Stock Units RSUs may be granted to executive officers, other employees and Directors and represent an equal number of common shares to be issued in the future. The RSUs vest in installments based on service or attainment of performance criteria generally beginning in the first year from the date of grant and generally become fully vested 1 to 3 years from the date of grant. The outstanding units accrue dividends at the same rate as dividends paid to HMEC's shareholders. These dividends are reinvested into additional RSUs. Changes in outstanding RSUs were as follows: Total Outstanding Units Vested Units Units Weighted Average Units Weighted Average December 31, 2022 816,759 $36.58 416,082 $28.93 Granted (1) 286,648 $35.78 — — Adjustment for performance achievement 6,174 $44.49 — — Vested — — 176,082 $41.93 Forfeited (5,323) $42.25 — — Distributed (2) (179,028) $41.65 (179,028) $41.65 December 31, 2023 925,230 $35.43 413,136 $29.04 (1) Includes dividends reinvested into additional RSUs. (2) Includes distributed units which were utilized to satisfy withholding taxes due on the distribution. |
Statutory Information and Divid
Statutory Information and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Statutory Information and Dividend Restrictions | Statutory Information and Dividend Restrictions The insurance departments of various states in which the insurance subsidiaries of HMEC are domiciled recognize as net income and surplus those amounts determined in conformity with statutory accounting principles prescribed or permitted by the insurance departments, which differ in certain respects from GAAP. HMEC has principal insurance subsidiaries domiciled in Illinois, New York, Wisconsin and Texas. The statutory financial statements of these subsidiaries are prepared in accordance with accounting principles prescribed or permitted by the Illinois Department of Insurance, the New York Department of Financial Services, the Wisconsin Office of the Commissioner of Insurance and the Texas Department of Insurance, as applicable. Prescribed statutory accounting principles include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. In converting from statutory to GAAP, typical adjustments include DAC, certain reinsurance transactions, the inclusion of statutory non-admitted assets, the inclusion of net unrealized investment gains or losses in shareholders' equity relating to fixed maturity securities and establishing life reserves using different actuarial assumptions. The following table includes selected information for HMEC's insurance subsidiaries: ($ in millions) Year Ended December 31, 2023 2022 2021 Consolidated net income, statutory basis $ 24.7 $ 77.0 $ 114.8 Consolidated capital and surplus, statutory basis (1) $ 1,043.6 $ 1,024.5 $ 955.1 (1) Subject to regulatory restrictions. The NAIC has risk-based capital guidelines to evaluate the adequacy of statutory capital and surplus in relation to risks assumed in investments, reserving policies, and volume and types of insurance business written. As of December 31, 2023 and 2022, the minimum statutory-basis capital and surplus required to be maintained by HMEC's insurance subsidiaries was $135.3 million and $123.3 million, respectively. As of December 31, 2023 and 2022, statutory capital and surplus of each of the Company's insurance subsidiaries was above required levels. The restricted net assets of HMEC's insurance subsidiaries wer e $29.2 million and $28.6 million as of December 31, 2023 and 2022, respectively. The minimum statutory basis capital and surplus amount at each date is the total estimated authorized control level risk-based capital for all of HMEC's insurance subsidiaries combined. Authorized control level risk-based capital represents the minimum level of statutory basis capital and surplus necessary before the insurance commissioner in the respective state of domicile is authorized to take whatever regulatory actions considered necessary to protect the best interests of the policyholders and creditors of the insurer. The amount of restricted net assets represents the combined fair value of securities on deposit with governmental agencies for the insurance subsidiaries as required by law in various states in which the insurance subsidiaries of HMEC conduct business. HMEC relies largely on dividends from its insurance subsidiaries to meet its obligations for payment of principal and interest on debt, dividends to shareholders and parent company operating expenses, including tax payments pursuant to tax sharing agreements. Payments for share repurchase programs also have this dependency. HMEC's insurance subsidiaries are subject to various regulatory restrictions which limit the amount of annual dividends or other distributions, including loans or cash advances, available to HMEC without prior approval of the insurance regulatory authorities. As a result, HMEC may not be able to receive dividends from such subsidiaries at times and in amounts necessary to pay desired dividends to shareholders. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Lawsuits and Legal Proceedings Companies in the insurance industry have been subject to substantial litigation resulting from claims, disputes and other matters. For instance, they have faced expensive claims, including class action lawsuits, alleging, among other things, improper sales practices and improper claims settlement procedures. Negotiated settlements of certain such actions have had a material adverse effect on many insurance companies. At the time of issuance of this Annual Report on Form 10-K, except as noted below, the Company does not have pending litigation from which there is a reasonable possibility of material loss. In 2023, the Horace Mann Insurance Company (HMIC) was named as a defendant in one lawsuit and received various demands for reimbursement and notices of claims related to legacy, long-tail commercial lines claims, including asbestos, environmental, and sexual molestation claims. It is alleged that HMIC reinsured certain commercial lines policies as a member of various insurance pooling arrangements in the late 1960s and early 1970s. The related policies were written prior to the 1975 acquisition of Horace Mann by INA discussed in Part I - Item 1 of this Annual Report on Form 10-K. HMEC’s available records indicate that on January 1, 1975, HMIC entered a quota share retrocession treaty with INA. It is the Company’s understanding that claims arising under these legacy policies were handled by various third parties pursuant to the terms of that treaty and its subsequent amendments entered into on behalf of HMIC. Ultimately, after amendments to the treaty and various corporate transactions involving the reinsurer, these obligations were assumed by companies that were affiliated with R&Q Reinsurance Company (R&Q). The matters noted above arose following the March 23, 2023, Order of Liquidation in Pennsylvania of R&Q. HMIC is defending itself against the pending litigation and is in the process of investigating and evaluating the other demands and claims notices under a complete reservation of rights. In addition, in order to preserve its rights, HMIC submitted a proof of claim in the pending R&Q liquidation proceeding. The amounts claimed against HMIC, if successful, could be material. However, based on the preliminary nature of the matters, the information available to date and considering the legal and factual challenges to the litigation and claims, it is not possible to provide a reasonable estimate of any resultant payment. Investment Commitments The Company has outstanding commitments to fund investments primarily in limited partnership interests. Such unfunded commitments were $502.6 million and $704.2 million for the years ended December 31, 2023 and 2022, respectively. |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | Comprehensive income (loss) represents the change in shareholders' equity during a reporting period from transactions and other events and circumstances from non-shareholder sources. For the Company, comprehensive income (loss) is equal to net income plus or minus the after tax change in net unrealized investment gains (losses) on fixed maturity securities, the after tax change in net reserve remeasurements attributable to discount rates, and the after tax change in net funded status of benefit plans for the periods as shown in the Consolidated Statements of Changes in Shareholders' Equity. AOCI represents the accumulated change in shareholders' equity from these transactions and other events and circumstances from non-shareholder sources as shown in the Consolidated Balance Sheets. In the Consolidated Balance Sheets, the Company recognizes the net funded status of benefit plans as a component of AOCI, net of tax. Comprehensive Income (Loss) The components of comprehensive income (loss) were as follows (in millions, 2022 and 2021 recast for the adoption of LDTI): ($ in millions) Year Ended December 31, 2023 2022 2021 Net income $ 45.0 $ 19.8 $ 170.4 Other comprehensive income (loss): Effect of adopting ASU 2018-12 — — (426.6) Change in net unrealized investment gains (losses) on fixed maturity securities: Net unrealized investment gains (losses) on securities arising during the period 133.9 (1,042.6) (122.8) Less: reclassification adjustment for net investment gains (losses) included in income before income tax (20.3) (29.1) (7.7) Total, before tax 154.2 (1,013.5) (115.1) Income tax expense (benefit) 32.9 (216.8) (24.8) Total, net of tax 121.3 (796.7) (90.3) Change in net reserve remeasurements attributable to discount rates: Total, before tax (47.2) 567.6 141.0 Income tax expense (benefit) (10.1) 121.7 30.2 Total, net of tax (37.1) 445.9 110.8 Change in net funded status of benefit plans: Total, before tax 1.5 1.8 1.2 Income tax expense (benefit) 0.3 0.4 0.2 Total, net of tax 1.2 1.4 1.0 Total comprehensive income (loss) $ 130.4 $ (329.6) $ (234.7) Accumulated Other Comprehensive Income (Loss) The following table reconciles the components of AOCI for the periods indicated (2022 and 2021 recast for the adoption of LDTI) ($ in millions) Net Unrealized Investment Gains (Losses) on Securities (1)(2) Net Reserve Remeasurements Attributable to Discount Rates (1) Net Funded Status of Benefit Plans (1) Total (1) Beginning balance, January 1, 2023 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Other comprehensive income (loss) before reclassifications 105.3 (37.1) 1.2 69.4 Amounts reclassified from AOCI 16.0 — — 16.0 Net current period other comprehensive income (loss) 121.3 (37.1) 1.2 85.4 Ending balance, December 31, 2023 $ (328.3) $ 21.9 $ (7.6) $ (314.0) Beginning balance, January 1, 2022 $ 347.1 $ (386.9) $ (10.2) $ (50.0) Other comprehensive income (loss) before reclassifications (819.7) 445.9 1.4 (372.4) Amounts reclassified from AOCI 23.0 — — 23.0 Net current period other comprehensive income (loss) (796.7) 445.9 1.4 (349.4) Ending balance, December 31, 2022 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Beginning balance, January 1, 2021 $ 366.3 $ — $ (11.2) $ 355.1 Effect of adopting ASU 2018-12 71.1 (497.7) — (426.6) Other comprehensive income (loss) before reclassifications (96.4) 110.8 1.0 15.4 Amounts reclassified from AOCI 6.1 — — 6.1 Net current period other comprehensive income (loss) (90.3) 110.8 1.0 21.5 Ending balance, December 31, 2021 $ 347.1 $ (386.9) $ (10.2) $ (50.0) (1) All amounts are net of tax. (2) The pretax amounts reclassified from AOCI, $(20.3) million, $(29.1) million and $(7.7) million, are included in net investment gains (losses) and the related income tax expense (benefit), $(4.3) million, $(6.1) million and $(1.6) million, are included in income tax expense (benefit) in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021, respectively. Comparative information for elements that are not required to be reclassified in their entirety to net income in the same reporting period is located in Note 3. |
Supplemental Consolidated Cash
Supplemental Consolidated Cash and Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Consolidated Cash and Cash Flow Information | Supplemental Consolidated Cash and Cash Flow Information ($ in millions) Years Ended December 31, 2023 2022 2021 Cash $ 29.0 $ 42.2 $ 133.0 Restricted cash 0.7 0.6 0.7 Total cash and restricted cash shown in the Consolidated Statements of Cash Flows $ 29.7 $ 42.8 $ 133.7 Cash paid during the year for: Interest $ 30.1 $ 18.2 $ 13.5 Income taxes 14.0 8.6 23.7 Non-cash investing activities with respect to modifications or exchanges of fixed maturity securities as well as paid-in-kind activity for policy loans were insignificant for the years ended December 31, 2023, 2022 and 2021, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | The Company conducts and manages its business through four reporting segments. The three reporting segments representing the major lines of business, are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). The Company does not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those reporting segments, but classifies those items in the fourth reporting segment, Corporate & Other. In addition to ongoing transactions such as corporate debt service, net investment gains (losses) and certain public company expenses, such items also have included corporate debt retirement costs, when applicable. The accounting policies of the reporting segments are the same as those described in Note 1. The Company accounts for intersegment transactions, primarily the allocation of operating and agency costs from Corporate & Other to Property & Casualty, Life & Retirement, and Supplemental & Group Benefits on a direct cost basis. Summarized financial information for these segments is as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 2021 Net premiums and contract charges earned Property & Casualty $ 645.6 $ 608.2 $ 617.4 Life & Retirement 151.7 144.0 143.4 Supplemental & Group Benefits (1) 259.8 275.5 128.0 Total $ 1,057.1 $ 1,027.7 $ 888.8 Net investment income Property & Casualty $ 37.9 $ 31.4 $ 61.1 Life & Retirement 369.9 338.3 338.6 Supplemental & Group Benefits (1) 38.9 33.3 25.2 Corporate & Other 0.3 — (0.1) Intersegment eliminations (2.2) (2.1) (2.3) Total $ 444.8 $ 400.9 $ 422.5 Net income (loss) Property & Casualty $ (35.5) $ (44.4) $ 57.0 Life & Retirement 71.5 63.8 89.1 Supplemental & Group Benefits (1) 54.9 65.9 52.9 Corporate & Other (45.9) (65.5) (28.6) Total $ 45.0 $ 19.8 $ 170.4 ($ in millions) December 31, 2023 2022 2021 Assets Property & Casualty $ 1,218.1 $ 1,083.8 $ 1,243.4 Life & Retirement 11,365.0 10,754.4 12,144.2 Supplemental & Group Benefits (1) 1,338.8 1,359.3 855.6 Corporate & Other 190.4 173.4 281.8 Intersegment eliminations (62.4) (64.8) (64.8) Total $ 14,049.9 $ 13,306.1 $ 14,460.2 Additional significant financial information for these segments is as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) Years Ended December 31, 2023 2022 2021 DAC amortization expense Property & Casualty $ 71.3 $ 64.3 $ 67.7 Life & Retirement 28.0 23.0 22.0 Supplemental & Group Benefits (1) 1.9 0.9 0.9 Total $ 101.2 $ 88.2 $ 90.6 Income tax expense (benefit) Property & Casualty $ (9.8) $ (13.8) $ 13.2 Life & Retirement 15.1 10.6 19.3 Supplemental & Group Benefits (1) 14.8 18.1 14.5 Corporate & Other (11.8) (18.2) (7.3) Total $ 8.3 $ (3.3) $ 39.7 (1) Group Benefits was acquired effective January 1, 2022 and thus, comparison to amounts for the year ended December 31, 2021 is not meaningful. |
Prior Period Consolidated Finan
Prior Period Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prior Period Consolidated Financial Statements | Prior Period Consolidated Financial Statements Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (also known as LDTI). The Company adopted LDTI using the modified retrospective approach where permitted with changes applied as of January 1, 2021. As a result of adoption, the Company’s prior period consolidated financial statements have been recast. The following tables summarize the effects of adopting LDTI on our Consolidated Financial Statements. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED BALANCE SHEET ($ in millions, except share data) December 31, 2022 Effect of the Adoption of ASU 2018-12 Reclassifications (1) December 31, 2022 As Reported As Adjusted Assets Total investments $ 6,587.6 $ — $ — $ 6,587.6 Cash 42.8 — — 42.8 Deferred policy acquisition costs 433.1 (102.5) — 330.6 Reinsurance balances receivable 506.2 (38.2) — 468.0 Deposit asset on reinsurance 2,516.6 — — 2,516.6 Intangible assets 185.2 — — 185.2 Goodwill 54.3 — — 54.3 Other assets 328.7 — — 328.7 Separate Account variable annuity assets 2,792.3 — — 2,792.3 Total assets $ 13,446.8 $ (140.7) $ — $ 13,306.1 Liabilities and Shareholders' Equity Policy liabilities Investment contract and policy reserves $ 6,968.0 $ (151.9) $ (6,816.1) $ — Future policy benefit reserves — — 1,718.0 1,718.0 Policyholders' account balances — — 5,260.6 5,260.6 Unpaid claims and claim expenses 585.1 (2.9) (18.2) 564.0 Unearned premiums 264.2 1.9 — 266.1 Total policy liabilities 7,817.3 (152.9) 144.3 7,808.7 Other policyholder funds 954.0 (0.4) (144.3) 809.3 Other liabilities 297.0 2.5 — 299.5 Short-term debt 249.0 — — 249.0 Long-term debt 249.0 — — 249.0 Separate Account variable annuity liabilities 2,792.3 — — 2,792.3 Total liabilities 12,358.6 (150.8) — 12,207.8 Preferred stock — — — — Common stock 0.1 — — 0.1 Additional paid-in capital 502.6 — — 502.6 Retained earnings 1,468.6 43.8 — 1,512.4 Accumulated other comprehensive income (loss), net of tax: Net unrealized investment losses on fixed maturity securities (356.9) (92.7) — (449.6) Net reserve remeasurements attributable to discount rates — 59.0 — 59.0 Net funded status of benefit plans (8.8) — — (8.8) Treasury stock, at cost (517.4) — — (517.4) Total shareholders’ equity 1,088.2 10.1 — 1,098.3 Total liabilities and shareholders’ equity $ 13,446.8 $ (140.7) $ — $ 13,306.1 (1) The Company has reclassified the presentation of certain information to conform to the current year's presentation. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ($ in millions, except per share data) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2022 December 31, 2022 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 1,029.0 $ (1.3) $ 1,027.7 Net investment income 400.9 — 400.9 Net investment losses (56.5) — (56.5) Other income 9.5 — 9.5 Total revenues 1,382.9 (1.3) 1,381.6 Benefits, losses and expenses Benefits, claims and settlement expenses 761.6 (14.6) 747.0 Interest credited 177.6 (4.2) 173.4 Operating expenses 315.9 (0.4) 315.5 DAC amortization expense 98.7 (10.5) 88.2 Intangible asset amortization expense 16.8 — 16.8 Interest expense 19.4 — 19.4 Other expense - goodwill and intangible asset impairment 4.8 — 4.8 Total benefits, losses and expenses 1,394.8 (29.7) 1,365.1 Income before income taxes (11.9) 28.4 16.5 Income tax expense (benefit) (9.3) 6.0 (3.3) Net income (2.6) 22.4 19.8 Net income per share Basic (0.06) 0.54 0.48 Diluted (0.06) 0.53 0.47 Weighted average number of shares and equivalent shares Basic 41.6 — 41.6 Diluted 41.8 — 41.8 Statement of Comprehensive Income (Loss) Net income (2.6) 22.4 19.8 Other comprehensive income (loss), net of tax: Change in net unrealized investment losses on fixed maturity securities (647.6) (149.1) (796.7) Change in net reserve remeasurements attributable to discount rates — 445.9 445.9 Change in net funded status of benefit plans 1.4 — 1.4 Other comprehensive loss (646.2) 296.8 (349.4) Comprehensive income (loss) $ (648.8) $ 319.2 $ (329.6) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ($ in millions, except per share data) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2021 December 31, 2021 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 889.6 $ (0.8) $ 888.8 Net investment income 422.5 — 422.5 Net investment losses (11.0) — (11.0) Other income 29.0 — 29.0 Total revenues 1,330.1 (0.8) 1,329.3 Benefits, losses and expenses Benefits, claims and settlement expenses 617.7 (27.0) 590.7 Interest credited 164.4 (4.4) 160.0 Operating expenses 251.5 (0.5) 251.0 DAC amortization expense 94.7 (4.1) 90.6 Intangible asset amortization expense 13.0 — 13.0 Interest expense 13.9 — 13.9 Total benefits, losses and expenses 1,155.2 (36.0) 1,119.2 Income before income taxes 174.9 35.2 210.1 Income tax expense (benefit) 32.1 7.6 39.7 Net income 142.8 27.6 170.4 Net income per share Basic 3.40 0.66 4.06 Diluted 3.39 0.65 4.04 Weighted average number of shares and equivalent shares Basic 42.0 — 42.0 Diluted 42.2 — 42.2 Statement of Comprehensive Income (Loss) Net income 142.8 27.6 170.4 Other comprehensive income (loss), net of tax: Effect of adopting ASU 2018-12 — (426.6) (426.6) Change in net unrealized investment losses on fixed maturity securities (75.6) (14.7) (90.3) Change in net reserve remeasurements attributable to discount rates — 110.8 110.8 Change in net funded status of benefit plans 1.0 — 1.0 Other comprehensive loss (74.6) (330.5) (405.1) Comprehensive income (loss) $ 68.2 $ (302.9) $ (234.7) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY ($ in millions) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2022 December 31, 2022 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 502.6 — 502.6 Retained earnings Beginning balance 1,524.9 22.1 1,547.0 Net income (2.6) 22.4 19.8 Effect of adopting ASU 2018-12 (1) — (0.7) (0.7) Dividends per share; 2022, $1.28 per share (53.7) — (53.7) Ending balance 1,468.6 43.8 1,512.4 Accumulated other comprehensive income (loss), net of tax: Beginning balance 280.5 (330.5) (50.0) Change in net unrealized investment losses on fixed maturity securities (647.6) (149.1) (796.7) Change in net reserve remeasurements attributable to discount rates — 445.9 445.9 Change in net funded status of benefit plans 1.4 — 1.4 Ending balance (365.7) (33.7) (399.4) Treasury stock, at cost Ending balance (517.4) — (517.4) Shareholders' equity at end of period $ 1,088.2 $ 10.1 $ 1,098.3 (1) See Note 1 to the Consolidated Financial Statements for information regarding ASU 2018-12. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY ($ in millions) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2021 December 31, 2021 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 495.3 — 495.3 Retained earnings Beginning balance 1,434.6 — 1,434.6 Net income 142.8 27.6 170.4 Effect of adopting ASU 2018-12 — (5.5) (5.5) Dividends per share; 2021, $1.24 per share (52.5) — (52.5) Ending balance 1,524.9 22.1 1,547.0 Accumulated other comprehensive income (loss), net of tax: Beginning balance 355.1 — 355.1 Effect of adopting ASU 2018-12 — (426.6) (426.6) Change in net unrealized investment losses on fixed maturity securities (75.6) (14.7) (90.3) Change in net reserve remeasurements attributable to discount rates — 110.8 110.8 Change in net funded status of benefit plans 1.0 — 1.0 Ending balance 280.5 (330.5) (50.0) Treasury stock, at cost Ending balance (493.4) — (493.4) Shareholders' equity at end of period $ 1,807.4 $ (308.4) $ 1,499.0 HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS ($ in millions) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2022 December 31, 2022 As Reported As Adjusted Cash flows - operating activities Net income $ (2.6) $ 22.4 $ 19.8 Adjustments to reconcile net income to net cash provided by operating activities: Net investment losses 56.5 — 56.5 Depreciation and intangible asset amortization 27.6 — 27.6 Share-based compensation expense 8.9 — 8.9 Loss from EMA investments, net of dividends or distributions 18.2 — 18.2 Other expense - goodwill impairment 4.8 — 4.8 Changes in: Insurance liabilities 440.5 (106.3) 334.2 Amounts due under reinsurance agreements (348.2) 38.4 (309.8) Income tax liabilities (17.1) 127.6 110.5 Other operating assets and liabilities (28.1) (81.3) (109.4) Other, net 11.0 (0.8) 10.2 Net cash provided by operating activities 171.5 — 171.5 Cash flows - investing activities Net cash used in investing activities (214.6) — (214.6) Cash flows - financing activities Net cash provided by financing activities (47.8) — (47.8) Net decrease in cash (90.9) — (90.9) Cash at beginning of period 133.7 — 133.7 Cash at end of period $ 42.8 $ — $ 42.8 HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS ($ in millions) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2021 December 31, 2021 As Reported As Adjusted Cash flows - operating activities Net income $ 142.8 $ 27.6 $ 170.4 Adjustments to reconcile net income to net cash provided by operating activities: Net investment losses 11.0 — 11.0 Depreciation and intangible asset amortization 18.4 — 18.4 Share-based compensation expense 8.4 — 8.4 Loss from EMA investments, net of dividends or distributions (41.5) — (41.5) Other expense - goodwill impairment — — — Changes in: Insurance liabilities 46.9 67.6 114.5 Amounts due under reinsurance agreements (1.5) 8.9 7.4 Income tax liabilities 8.5 (99.7) (91.2) Other operating assets and liabilities 8.9 (4.4) 4.5 Other, net 3.0 — 3.0 Net cash provided by operating activities 204.9 — 204.9 Cash flows - investing activities Net cash used in investing activities 302.0 — 302.0 Cash flows - financing activities Net cash provided by financing activities 208.5 — 208.5 Net decrease in cash 111.4 — 111.4 Cash at beginning of period 22.3 — 22.3 Cash at end of period $ 133.7 $ — $ 133.7 Selected unaudited quarterly financial data is presented below. ($ in millions, except per share data) Three Months Ended December 31, September 30, June 30, March 31, 2022 Insurance premiums and contract changes earned $ 259.1 $ 257.4 $ 255.4 $ 255.8 Insurance premiums written and contract deposits 358.2 372.7 359.9 346.2 Total Revenues 346.4 342.6 345.9 346.7 Net income (16.7) 20.4 (4.2) 20.3 Per share information Basic Net income $ (0.40) $ 0.49 $ (0.10) $ 0.48 Shares of common stock - weighted average 41.4 41.4 41.8 41.9 Diluted Net income $ (0.40) $ 0.49 $ (0.10) $ 0.48 Shares of common stock and equivalent shares - weighted average 41.4 41.6 41.8 42.1 2021 Insurance premiums and contract changes earned $ 210.6 $ 225.2 $ 225.6 $ 227.4 Insurance premiums written and contract deposits 314.0 346.2 334.2 304.4 Total Revenues 331.2 329.4 346.9 321.7 Net income 46.9 20.2 54.2 49.1 Per share information Basic Net income $ 1.12 $ 0.48 $ 1.29 $ 1.17 Shares of common stock - weighted average 42.0 42.0 42.0 41.9 Diluted Net income $ 1.11 $ 0.48 $ 1.29 $ 1.16 Shares of common stock and equivalent shares - weighted average 42.2 42.2 42.2 42.1 |
Schedule I Summary of Investmen
Schedule I Summary of Investments-Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments-Other Than Investments in Related Parties | HORACE MANN EDUCATORS CORPORATION SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES December 31, 2023 ($ in millions) Type of Investments Cost or Fair Balance Fixed maturity securities U.S. Government and federally sponsored agency obligations $ 925.0 $ 819.2 $ 819.2 States, municipalities and political subdivisions 1,333.4 1,270.1 1,270.1 Foreign government bonds 23.1 22.1 22.1 Public utilities 93.8 80.9 80.9 All other corporate bonds 1,850.0 1,665.5 1,665.5 Asset-backed securities 1,044.7 1,020.5 1,020.5 Residential mortgage-backed securities (non-agency) 13.9 12.9 12.9 Commercial mortgage-backed securities 342.9 317.8 317.8 Redeemable preferred stocks 26.1 26.3 26.3 Total fixed maturity securities 5,652.9 5,235.3 5,235.3 Equity securities Industrial, miscellaneous and all other 0.3 0.3 0.3 Banking & finance and insurance companies 1.1 1.1 1.1 Non-redeemable preferred stocks 68.3 68.3 68.3 Closed-end fund 16.5 16.5 16.5 Total equity securities 86.2 86.2 86.2 Limited partnership interests 1,138.8 XXX 1,138.8 Short-term investments 132.9 XXX 132.9 Policy loans 141.4 XXX 141.4 Derivatives 12.5 $ 19.0 19.0 Mortgage loans 43.2 XXX 43.2 Other 33.7 XXX 33.7 Total investments $ 7,241.6 XXX $ 6,830.5 See accompanying Report of Independent Registered Public Accounting Firm. |
Schedule II Condensed Financial
Schedule II Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II Condensed Financial Information of Registrant | HORACE MANN EDUCATORS CORPORATION (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS As of December 31, 2023 and 2022 ($ in millions, except share data) December 31, 2023 2022 ASSETS Investments and cash $ 3.4 $ 2.1 Investments in subsidiaries 1,716.6 1,597.1 Other assets 17.1 7.1 Total assets $ 1,737.1 $ 1,606.3 LIABILITIES AND SHAREHOLDERS' EQUITY Short-term debt $ — $ 249.0 Long-term debt 546.0 249.0 Other liabilities 15.8 10.0 Total liabilities 561.8 508.0 Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued — — Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 0.1 0.1 Additional paid-in capital 510.9 502.6 Retained earnings 1,502.2 1,512.4 Accumulated other comprehensive income (loss), net of taxes: Net unrealized investment gains (losses) on fixed maturity securities (328.3) (449.6) Net reserve remeasurements attributable to discount rates 21.9 59.0 Net funded status of benefit plans (7.6) (8.8) Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares (523.9) (517.4) Total shareholders' equity 1,175.3 1,098.3 Total liabilities and shareholders' equity $ 1,737.1 $ 1,606.3 See accompanying Note to Condensed Financial Statements. See accompanying Report of Independent Registered Public Accounting Firm. SCHEDULE II (continued) HORACE MANN EDUCATORS CORPORATION (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF OPERATIONS ($ in millions) Year Ended December 31, 2023 2022 2021 Revenues Net investment income $ 0.2 $ — $ (0.1) Total revenues 0.2 — (0.1) Expenses Interest expense 29.7 19.4 13.8 Other 5.1 8.4 11.2 Total expenses 34.8 27.8 25.0 Loss before income tax benefit and equity in net earnings of subsidiaries (34.6) (27.8) (25.1) Income tax benefit (6.9) (6.3) (5.4) Loss before equity in net earnings of subsidiaries (27.7) (21.5) (19.7) Equity in net earnings (losses) of subsidiaries 72.7 41.3 190.1 Net income (loss) $ 45.0 $ 19.8 $ 170.4 See accompanying Note to Condensed Financial Statements. See accompanying Report of Independent Registered Public Accounting Firm. SCHEDULE II (continued) HORACE MANN EDUCATORS CORPORATION (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS ($ in millions) Year Ended December 31, 2023 2022 2021 Cash flows from operating activities Net income (loss) $ 45.0 $ 19.8 $ 170.4 Equity in net income of subsidiaries (72.7) (41.3) (190.1) Dividends received from subsidiaries 132.1 184.3 66.0 Changes in: Income taxes (5.8) 3.9 1.8 Operating assets and liabilities 6.0 0.8 8.4 Other 1.2 (1.5) (2.6) Net cash provided by operating activities 105.8 166.0 53.9 Cash flows from investing activities Purchase of equity securities — — — Net increase (decrease) in short-term investments (1.3) (0.7) 2.7 Capital contributions to subsidiaries (98.0) (35.0) (5.0) Acquisition of business, net of cash acquired — (172.3) — Net cash used in investing activities (99.3) (208.0) (2.3) Cash flows from financing activities Dividends paid to shareholders (53.9) (52.6) (51.4) Proceeds from issuance 2023 Senior Note due 2028 296.5 — — Principal borrowings on Revolving Credit Facility — — 114.0 Principal repayment on senior revolving credit facility (249.0) — — Acquisition of treasury stock (6.5) (24.0) (5.3) Proceeds from exercise of stock options — — 0.3 Withholding tax payments on RSUs tendered (1.8) (2.4) (2.0) Proceeds for Share-based compensation 8.0 7.1 6.7 Net cash provided by (used in) financing activities (6.7) (71.9) 62.3 Net increase (decrease) in cash (0.2) (113.9) 113.9 Cash at beginning of period 0.3 114.2 0.3 Cash at end of period $ 0.1 $ 0.3 $ 114.2 See accompanying Note to Condensed Financial Statements. See accompanying Report of Independent Registered Public Accounting Firm. SCHEDULE II (continued) HORACE MANN EDUCATORS CORPORATION (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT NOTE TO CONDENSED FINANCIAL STATEMENTS The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes thereto presented in Part II - Item 8 of this Annual Report on Form 10-K. |
Schedule III and VI Supplementa
Schedule III and VI Supplementary Insurance Information Supplemental Information Concerning Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule III and VI Supplementary Insurance Information Supplemental Information Concerning Property and Casualty Insurance Operations | HORACE MANN EDUCATORS CORPORATION SCHEDULE III: SUPPLEMENTARY INSURANCE INFORMATION ($ in millions) Deferred Future policy Unearned Other Premium Net investment Benefits, Amortization Other Net premiums written (excluding life) Segment Year Ended December 31, 2023 Property & Casualty $ 29.3 $ 416.9 $ 297.9 $ — $ 645.5 $ 37.9 $ 557.0 $ 71.3 $ 103.3 $ 684.4 Life & Retirement 297.7 6,418.2 — 816.0 151.8 369.9 325.1 28.0 99.0 29.2 Supplemental & Group Benefits 9.3 695.4 3.0 100.0 259.8 38.9 92.7 1.9 123.2 195.7 Other, including consolidating eliminations N/A N/A N/A N/A N/A (1.9) N/A N/A 37.1 N/A Total $ 336.3 $ 7,530.5 $ 300.9 $ 916.0 $ 1,057.1 $ 444.8 $ 974.8 $ 101.2 $ 362.6 $ 909.3 Year Ended December 31, 2022 (recast) Property & Casualty $ 24.6 $ 388.7 $ 259.1 $ — $ 608.2 $ 31.4 $ 534.3 $ 64.3 $ 102.6 $ 617.5 Life & Retirement 299.5 6,413.7 4.0 719.8 144.0 338.3 293.6 23.0 108.2 29.5 Supplemental & Group Benefits 6.5 740.2 3.0 89.5 275.5 33.3 92.5 0.9 118.1 $ 213.2 Other, including consolidating eliminations N/A N/A N/A N/A N/A (2.1) N/A N/A 27.6 N/A Total $ 330.6 $ 7,542.6 $ 266.1 $ 809.3 $ 1,027.7 $ 400.9 $ 920.4 $ 88.2 $ 356.5 $ 860.2 Year Ended December 31, 2021 (recast) Property & Casualty $ 24.4 $ 367.4 $ 249.8 $ — $ 617.4 $ 61.1 $ 447.9 $ 67.7 $ 97.2 $ 607.8 Life & Retirement 295.1 6,714.6 2.8 873.4 143.4 338.6 269.7 22.1 102.0 30.6 Supplemental & Group Benefits 4.9 395.4 3.1 72.5 128.0 25.2 33.1 0.8 54.3 $ 93.3 Other, including consolidating eliminations N/A N/A N/A N/A N/A (2.4) N/A N/A 24.4 N/A Total $ 324.4 $ 7,477.4 $ 255.7 $ 945.9 $ 888.8 $ 422.5 $ 750.7 $ 90.6 $ 277.9 $ 731.7 N/A - Not applicable. See accompanying Report of Independent Registered Public Accounting Firm. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV Reinsurance | HORACE MANN EDUCATORS CORPORATION REINSURANCE ($ in millions) Column A Column B Column C Column D Column E Column F Gross Ceded to Assumed Net Percentage Year Ended December 31, 2023 Life insurance in force $ 40,422.9 $ 9,597.7 $ — $ 30,825.2 — Premiums Property & Casualty $ 653.0 $ 18.1 $ 10.7 $ 645.6 1.7 % Life & Retirement 166.5 14.8 — 151.7 — Supplemental & Group Benefits 278.1 43.4 25.1 259.8 9.7 % Total premiums $ 1,097.6 $ 76.3 $ 35.8 $ 1,057.1 3.4 % Year Ended December 31, 2022 Life insurance in force $ 38,564.6 $ 9,330.9 $ — $ 29,233.7 — Premiums Property & Casualty $ 614.7 $ 15.0 $ 8.5 $ 608.2 1.4 % Life & Retirement 158.9 14.9 — 144.0 — Supplemental & Group Benefits 273.1 42.1 44.5 275.5 16.2 % Total premiums $ 1,046.7 $ 72.0 $ 53.0 $ 1,027.7 5.2 % Year Ended December 31, 2021 Life insurance in force $ 21,032.6 $ 4,693.5 $ — $ 16,339.1 — Premiums Property & Casualty $ 623.0 $ 15.3 $ 9.7 $ 617.4 1.6 % Life & Retirement 159.5 16.1 — 143.4 — Supplemental & Group Benefits 129.9 1.9 — 128.0 — Total premiums $ 912.4 $ 33.3 $ 9.7 $ 888.8 1.1 % Note: Premiums above include insurance premiums earned and contract charges earned. See accompanying Report of Independent Registered Public Accounting Firm. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC). The Company adopted ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts effective January 1, 2023, on a modified retrospective basis. Prior year balances were recast in this Annual Report on Form 10-K to conform to ASU 2018-12 on January 1, 2021. For further details, see Note 1 - Recent Adoption of New Accounting Standards, Note 6 - Long-Duration Contracts, and Note 18 - Prior Period Consolidated Financial Statements. The Company has reclassified the presentation of certain prior period information to conform to the current year's presentation. |
Consolidation | Consolidation All intercompany transactions and balances between HMEC and its subsidiaries and affiliates have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The most significant critical accounting estimates include valuation of hard-to-value fixed maturity securities, evaluation of credit loss impairments for fixed maturity securities, valuation of future policy benefit reserves, and valuation of liabilities for property and casualty unpaid claims and claim expense reserves. |
Investments | Investments Fixed Maturity Securities The Company invests predominantly in fixed maturity securities. Fixed maturity securities include bonds, asset-backed securities (ABS), mortgage-backed securities (MBS), other structured securities and redeemable preferred stocks. MBS includes residential and commercial mortgage-backed securities. Fixed maturity securities, which may be sold prior to their contractual maturity, are designated as available for sale (AFS) and are carried at fair value of which a portion represent securities that are hard-to-value. See Note 3 – Fair Value of Financial Instruments – Investments for a detailed description of how the Company estimates fair value for its fixed maturity securities portfolio including hard-to-value securities. An adjustment for net unrealized investment gains (losses) on all fixed maturity securities available for sale and carried at fair value, is recognized as a separate component of accumulated other comprehensive income (loss) (i.e., AOCI) within shareholders’ equity, net of applicable deferred taxes. The Company excludes accrued interest receivable from the amortized cost basis of its AFS fixed maturity securities. Equity Securities Equity securities primarily include common stocks, exchange traded and mutual funds and non-redeemable preferred stocks. Certain exchange traded and mutual funds have fixed maturity securities as their underlying investments. Equity securities are carried at fair value and have readily determinable fair values. Limited Partnership Interests Investments in limited partnership interests are accounted for using the equity method of accounting (EMA) and include interests in commercial mortgage loan funds, private equity funds, infrastructure equity funds, real estate equity funds, infrastructure debt funds and other funds. Policy Loans Policy loans are carried at unpaid principal balances. Short-Term and Other Investments Short-term investments, including money market funds, commercial paper, U.S. Treasury bills and other short-term investments, are carried at amortized cost, which approximates fair value. Other investments primarily consist of Federal Home Loan Bank of Chicago (FHLB) common stock, mortgage loans and derivatives. FHLB common stock is carried at cost. Mortgage loans are carried at amortized cost, net, which represent the amount expected to be collected. Derivatives are carried at fair value. Variable Interest Entities (VIEs) The Company invests in fixed maturity securities and alternative investment funds that could qualify as variable interests in VIEs. Such variable interests in VIEs have been reviewed and the Company determined that those VIEs are not subject to consolidation as the Company is not the primary beneficiary because it does not have the power to direct the activities that most significantly impact those VIEs' economic performance. Net Investment Income Net investment income primarily consists of interest, dividends and income from limited partnership interests. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. ABS and MBS interest income is determined considering estimated pay-downs, including prepayments, obtained from third-party data sources and internal estimates. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS and MBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is generally recalculated on a prospective basis. Net investment income for AFS fixed maturity securities includes the impact of accreting the credit loss allowance for the time value of money. Accrual of income is suspended for fixed maturity securities when the timing and amount of cash flows expected to be received is not reasonably estimable. Accrual of income is suspended for commercial mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued investment income receivables are monitored for recoverability and when not expected to be collected, are written-off through net investment income. Cash receipts on investments on non-accrual status are generally recorded as a reduction of amortized cost or principal. Income from limited partnership interests is recognized based upon the changes in fair value of the investee’s equity primarily determined using its net asset value and is generally recognized on a three month delay due to the availability of the related financial statements of the investee. The Company reports accrued investment income within other assets in the Consolidated Balance Sheets separately from AFS fixed maturity securities and has elected not to measure an allowance for credit losses for accrued investment income. Accrued investment income is written-off and recognized as a net investment loss at the time the issuer of the security defaults or is expected to default on payments. Net Investment Gains (Losses) Net investment gains (losses) include gains and losses on investment sales, changes in the credit loss allowances related to fixed maturity securities and mortgage loans, impairments, valuation changes of equity securities and periodic changes in fair value and settlements of derivatives. Net investment gains (losses) on investment sales are determined on a specific identification basis and are net of credit losses already recognized through an allowance. Credit Loss Impairments for Fixed Maturity Securities For fixed maturity securities classified as available for sale, the difference between amortized cost, net of a credit loss allowance (i.e., amortized cost, net) and fair value, net of certain other items and deferred income taxes (as disclosed in Part II - Item 8, Note 3 of the Consolidated Financial Statements in this Annual Report on Form 10-K) is reported as a component of accumulated other comprehensive income (loss) (i.e., AOCI) on the Consolidated Balance Sheets and is not reflected in the operating results of any period until reclassified to net income upon the consummation of a transaction with an unrelated third party or when a credit loss allowance transaction is recorded. We evaluate fixed maturity securities where fair value is below amortized cost on a quarterly basis to determined if a credit loss allowance is necessary. These reviews, in conjunction with our investment managers’ quarterly credit reports and relevant factors such as (1) has the security missed any scheduled principal or interest payments in the current quarter; (2) has the security been downgraded to below investment grade by rating agencies or if the security was below investment grade at time of purchase, has the security been downgraded by two or more notches since acquisition; (3) has the security declined in value by more than 10% compared to the prior quarter; (4) has the market yield changed by more than 50 basis points; are all considered in the impairment assessment process. For each fixed maturity security where fair value is below amortized cost, we assess whether management with the appropriate authority has made the decision to sell or whether it is more likely than not we will be required to sell the security before the anticipated recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance is written-off and the amortized cost basis of the security is written down to the fair value, with the losses recorded as a net investment loss. If we have not made the decision to sell the fixed maturity security and it is not more likely than not we will be required to sell the fixed maturity security before the anticipated recovery of its amortized cost basis, we evaluate whether we expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. We estimate the anticipated recovery based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s effective interest rate and are compared to the amortized cost basis of the security. The determination of whether we expect to received cash flow sufficient to recover the entire amortized cost basis of the security is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security. Our investment managers will calculate the anticipated recovery value of the security by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security at the time of purchase for fixed-rate securities. We will then review the assumptions/methodologies for reasonableness. The information reviewed generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, and the value of underlying collateral. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed maturity securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. If we do not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed maturity security, a credit loss allowance is recorded as a net investment loss for the shortfall in expected cash flows; however, the amortized cost basis, net of the credit loss allowance, may not be lower than the fair value of the security. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If we determine that the fixed maturity security does not have sufficient cash flows or other information to estimate the anticipated recovery value for the security, we may conclude that the entire decline in fair value is deemed to be credit related and the loss is recognized as a net investment loss. Subsequent changes in the anticipated recoveries, limited by the amount of previous taken credit allowances, are recorded through changes in the allowance for credit losses and recognized through net investment loss. |
Deferred Policy Acquisition Costs and Deferred Sales Inducements | Deferred Policy Acquisition Costs and Deferred Sales Inducements The Company's DAC by reporting segment was as follows (2022 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 Property & Casualty $ 29.3 $ 24.5 Life & Retirement 297.7 299.5 Supplemental & Group Benefits 9.3 6.6 Total $ 336.3 $ 330.6 DAC consists of costs that are incremental and directly related to the successful acquisition of new or renewal insurance contracts. Such costs include the incremental direct costs of contract acquisition, such as sales commissions; the portion of employees' total compensation and payroll-related fringe benefits related directly to time spent performing acquisition activities, such as underwriting, issuing, and processing policies for contracts that have actually been acquired; and other costs related directly to acquisition activities that would not have been incurred if the contract had not been acquired. For property and casualty risks, DAC is amortized over the terms of the insurance policies (6 or 12 months). For supplemental and group benefit policies, DAC is amortized in proportion to anticipated premiums over the terms of the insurance policies (approximately 6 years, based on an estimated average duration across all supplemental and group benefit products). Life contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. For all life insurance products, the constant level basis used is face amount in force. For all deferred annuity products, the constant level basis used is the deposit amount in force. The constant level basis used for amortization is projected using mortality and lapse assumptions that are based on the Company's experience, industry data, and other factors and are consistent with those used for the liabilities for future policy benefits (LFPB). If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected terminations, due to mortality and lapse experience higher than expected, are recognized in the current period as a reduction of the capitalized balances. Amortization of DAC is recognized as DAC amortization expense presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). The DAC balance is reduced for actual experience in excess of expected experience. Changes in future estimates are recognized prospectively over the remaining expected contract term. |
Intangible Assets, net | Intangible Assets, net The value of business acquired (VOBA) associated with the acquisition of NTA Life Enterprises, LLC (NTA) represents the difference between the fair value of insurance contracts and insurance policy reserves measured in accordance with the Company's accounting policy for insurance contracts acquired. VOBA was based on an actuarial estimate of the present value of future distributable earnings for insurance in force on the acquisition date. VOBA net of accumulated amortization was $64.8 million as of December 31, 2023 and is being amortized by product based on the present value of future premiums to be received. The Company estimates that it will recognize VOBA amortization of $5.4 million in 2024, $5.1 million in 2025, $4.7 million in 2026, $4.4 million in 2027 and $4.1 million in 2028. The Company accounts for the value of distribution acquired (VODA) associated with the acquisition of NTA based on an actuarial estimate of the present value of future business to be written by the existing distribution channel. VODA net of accumulated amortization was $36.0 million as of December 31, 2023 and is being amortized on a straight-line basis. The Company estimates that it will recognize VODA amortization of $2.9 million in each of the years 2024 through 2028, respectively. The Company accounts for the value of agency relationships based on the present value of commission overrides retained by NTA. Agency relationships net of accumulated amortization was $7.2 million as of December 31, 2023 and is being amortized based on the present value of future premiums to be received. The Company estimates that it will recognize agency relationships amortization of $1.4 million in 2024, $1.2 million in 2025, $1.0 million in 2026, $0.9 million in 2027 and $0.8 million in 2028. The Company accounts for the value of customer relationships based on the present value of expected profits from existing Benefit Consultants Group, Inc. (BCG) and Madison National customers in force at the date of acquisition. Customer relationships net of accumulated amortization was $48.4 million as of December 31, 2023 and is being amortized based on the present value of future profits to be received for BCG and based on the present value of future premiums for Madison National. The Company estimates that it will recognize customer relationships amortization of $4.8 million in 2024, $5.1 million in 2025, $5.5 million in 2026, $5.9 million in 2027 and $6.3 million in 2028. The trade names intangible asset represents the present value of future savings accruing to NTA, BCG and BCGS by virtue of not having to pay royalties for the use of the trade names, valued using the relief from royalty method. The state licenses intangible asset represents the regulatory licenses held by NTA and Madison National that were valued using the cost approach. Both the trade names and state licenses are indefinite-lived intangible assets that are not subject to amortization. Annually, the Company performs a VOBA analysis on supplemental insurance policies to assess whether a loss recognition event has occurred. This initially involves comparing the historical and expected future experience on the block to the assumptions embedded in the original VOBA intangible asset. If both the experience to date and current expected experience are consistently better than the initial VOBA assumptions, the remaining value in the block is sufficient to support the VOBA intangible asset and no loss recognition is necessary. If the historical and current expected assumptions are not uniformly better than the initial VOBA assumptions, a gross premium valuation (GPV) is performed to assess whether a loss recognition event has occurred. This involves discounting expected future benefits and expenses less expected future premiums. To the extent that this amount is greater than the liability for future benefits less the VOBA intangible asset, in aggregate for the supplemental insurance block, a loss would be recognized by first writing-off the VOBA and then increasing the liability. Currently, a GPV is not required for the acquired supplemental block. No such costs were deemed unrecoverable during the year ended December 31, 2023. Amortizing intangible assets (i.e., VODA, agency relationships and customer relationships) are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The carrying amount of an amortizing intangible asset is not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is not recoverable from undiscounted cash flows, the impairment is measured as the difference between the carrying amount and fair value. Intangible assets that are not subject to amortization (i.e., trade names and state licenses) are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. As of October 1, 2023, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount. As of October 1, 2022, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount with the exception of lower than anticipated BCG revenues. As of October 1, 2021, the Company performed both qualitative assessments and quantitative impairment tests for intangible assets and concluded that no impairments were warranted. |
Goodwill | Goodwill When the Company was acquired from CIGNA Corporation by HME Holdings, Inc. in 1989, goodwill was recognized in the application of purchase accounting. In 1994, goodwill was recognized with respect to the acquisition of Horace Mann Property & Casualty Insurance Company. In 2019, goodwill was recognized with respect to the acquisitions of BCG, BCGS and NTA. In 2022, goodwill was recognized with respect to the acquisition of Madison National. Goodwill represents the excess of the amounts paid to acquire a business over the fair value of its net assets at the date of acquisition. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least annually or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A reporting unit is defined as an operating segment or a business unit one level below an operating segment, if separate financial information is prepared and regularly reviewed by management at that level. The Company's reporting units, for which goodwill has been allocated, are Property & Casualty, Life, BCG, BCGS, NTA, and Madison National. Refer to Note 9 for the allocation of goodwill by reporting segment as of December 31, 2023. The goodwill impairment test, as defined in GAAP, allows an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity performs a quantitative goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount for purposes of confirming and measuring an impairment. Goodwill impairment is the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. Any amount of goodwill determined to be impaired is recognized as an expense in the period in which the impairment determination is made. |
Property and Equipment | Property and Equipment |
Separate Account Variable Annuity Assets and Liabilities | Separate Account Variable Annuity Assets and Liabilities Separate Account variable annuity assets represent contractholder funds invested in various mutual funds. The Separate Account variable annuity assets comprise actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the Separate Account variable annuity assets are invested are obtained daily from the fund managers. Separate Account variable annuity liabilities are equal to the estimated fair value of Separate Account variable annuity assets. The investment income, gains and losses of these accounts accrue directly to the contractholders and are not included in the results of operations of the Company. The activity of the Separate Accounts is not reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss) except for (1) contract charges earned and (2) the activity related to contract guarantees, which are benefits on existing variable annuity contracts. The Company's contract charges earned include fees charged to the Separate Accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Future Policy Benefits Reserves Liability for Future Policy Benefits LFPB, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that include discount rate, mortality, lapses, and expenses. These current assumptions are based on judgments that consider the Company's historical experience, industry data, and other factors. For traditional, limited-payment and supplemental health contracts, such contracts are grouped into cohorts by contract type and issue year. The liability is adjusted for differences between actual and expected experience. With the exception of the expense assumption, the Company reviews its historical and future cash flow assumptions at least annually and updates the net premium ratio used to calculate the liability each time the assumptions are changed. The Company has elected to use expense assumptions that are locked-in at contract inception and are not subsequently reviewed or updated. At least annually, the Company updates its estimate of cash flows expected over the entire life of a group of contracts using actual historical experience and current future cash flow assumptions. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated LFPB as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. This amount is then compared to the carrying amount of the liability as of that same date, before updating cash flow assumptions, to determine the current period change in liability estimate. This current period change in liability estimate is the liability remeasurement gain or loss. The impact of updated cash flow assumptions as well as the periodic liability remeasurement gain or loss is recognized as Benefits, claims and settlement expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). In subsequent periods, the revised net premiums are used to measure LFPB, subject to future revisions. For traditional and limited-payment contracts, a standard discount rate is used to measure the liabilities that is equivalent to the yield from an A-rated bond. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in other comprehensive income. For liability cash flows that are projected beyond the duration of market-observable A- rated bond, the Company uses the last market-observable yield level, and uses linear interpolation to determine yield assumptions for durations that do not have market-observable yields. Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of LFPB, including discount rate, mortality, lapses, and expenses. DPL is amortized and recognized as premium revenue in proportion to insurance in force for life insurance contracts and expected future benefit payments for annuity contracts. Interest is accreted on the balance of DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimates of cash flows for DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to Net premiums and contract charges earned presented in the Consolidated Statements of Operations and Comprehensive Income (Loss). DPL is recognized as a component of the Future policy benefit reserves presented in the Consolidated Balance Sheets. |
Investment Contract and Policy Reserves | Liabilities for future benefits on annuity contracts are carried at accumulated policyholder account values without reduction for potential surrender or withdrawal charges. |
Reserves for Fixed Indexed Annuities and Indexed Universal Life Products | Reserves for Fixed Indexed Annuities and Indexed Universal Life Products The Company offers fixed indexed annuity (FIA) products with interest crediting strategies linked to the Standard & Poor's (S&P) 500 Index and the Dow Jones Industrial Average (DJIA). The Company purchases call options on the applicable indices as an investment to provide the income needed to fund the annual index credits on the indexed products. These products are deferred fixed annuities with a guaranteed minimum interest rate plus a contingent return based on equity market performance and are considered hybrid financial instruments under GAAP. The Company elected to not use hedge accounting for derivative transactions. As a result, the Company accounts for the purchased call options and the embedded derivative related to the provision of a contingent return at fair value, with changes in fair value recognized as Net investment gains (losses) in the Consolidated Statements of Operations and Comprehensive Income (Loss). The embedded derivative is bifurcated from the host contract and included in Policyholders' account balances in the Consolidated Balance Sheets. The host contract is accounted for as a debt instrument in accordance with GAAP and is included in Investment contract and life policy reserves in the Consolidated Balance Sheets with any discount to the minimum account value being accreted using the effective yield method. In the Consolidated Statements of Operations and Comprehensive Income (Loss), accreted interest for FIA products and benefit claims on these products incurred during the reporting period are included in Benefits, claims and settlement expenses. The Company offers indexed universal life (IUL) products as part of its product portfolio with interest crediting strategies linked to the S&P 500 Index and the DJIA as well as a fixed option. The Company purchases call options monthly to economically hedge the potential liabilities arising in IUL accounts. As a result, the Company records the purchased call options and the embedded derivative related to the provision of a contingent return at fair value, with changes in fair value reported in Net investment gains (losses) in the Consolidated Statements of Operations and Comprehensive Income (Loss). IUL policies with a balance in one or more indexed accounts are considered to have an embedded derivative. The benefit reserve for the host contract is measured using the retrospective deposit method, which for Horace Mann's IUL product is equal to the account balance. The embedded derivative is bifurcated from the host contract, carried at fair value, and included in Policyholders' account balances in the Consolidated Balance Sheets. See Note 3 for more information regarding the determination of fair value for derivatives embedded in FIA and IUL and purchased call options. |
Unpaid Claims and Claim Expense Reserves | Short-Duration Insurance Contracts Liabilities for Property & Casualty unpaid claims and claim expense reserves (reserves) include provisions for payments to be made on reported claims, claims incurred but not yet reported (IBNR) and associated settlement expenses. All of the Company's reserves for Property & Casualty unpaid claims and claim expenses are carried at the full value of estimated liabilities and are not discounted for interest expected to be earned on the reserves. Estimated amounts of salvage and subrogation on unpaid Property & Casualty claims are deducted from the liability for unpaid claims. |
Other Policyholder Funds | Other Policyholder Funds Other policyholder funds includes primarily balances outstanding under funding agreements with the Federal Home Loan Bank of Chicago (FHLB) as well as dividend accumulations, carried at cost. Amounts received and repaid under FHLB funding agreements are classified as financing activities in the Company's Consolidated Statements of Cash Flows. |
Reinsurance | Reinsurance The Company enters into reinsurance arrangements pursuant to which it cedes certain insurance risks to unaffiliated reinsurers. Cessions under reinsurance agreements do not discharge the Company's obligations as the primary insurer. The accounting for reinsurance arrangements depends on whether the arrangement provides indemnification against loss or liability relating to insurance risk in accordance with GAAP. If the Company determines that a reinsurance agreement exposes the reinsurer to a reasonable possibility of a significant loss from insurance risk, the ceded unearned premiums and reinsurance balances recoverable on paid and unpaid losses and settlement expenses are reported separately as assets, instead of being netted with the related liabilities, since reinsurance does not relieve the Company of its legal liability to its policyholders. See Note 7 for further details. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company recognizes the reinsurance agreement using the deposit method of accounting. The assets transferred to the reinsurer as consideration paid is reported as a Deposit asset on reinsurance on the Company's Consolidated Balance Sheets. As amounts are received or paid or received, consistent with the underlying reinsured contracts, the Deposit asset on reinsurance is adjusted. The Deposit asset on reinsurance is accreted to the estimated ultimate cash flows using the interest method and the adjustment is reported as Net investment income. See Note 8 for further details. |
Insurance Premiums and Contract Charges Earned | Insurance Premiums and Contract Charges Earned Property & Casualty insurance premiums are recognized as revenue ratably over the related contract periods in proportion to the risks insured. The unexpired portions of these Property & Casualty premiums are recorded as unearned premiums, using the monthly pro rata method. Premiums and contract charges for life insurance contracts with account values and annuity contracts consist of charges for the cost of insurance, policy administration and withdrawals. Premiums for traditional life and supplemental and group policies are recognized as revenues when due over the premium-paying period. Contract deposits to annuity contracts and life insurance contracts with account values represent funds deposited by policyholders and are not included in the Company's premiums or contract charges earned. |
Share-Based Compensation | Share-Based Compensation The Company grants stock options and both service-based and performance-based restricted common stock units (RSUs) to executive officers, other employees and Directors in an effort to attract and retain individuals while also aligning compensation with the interests of the Company's shareholders. Additional information regarding the Company's share-based compensation plans is contained in Note 12. |
Income Taxes | Income Taxes The Company uses the asset and liability method for calculating deferred federal income taxes. Income tax provisions are generally based on income reported for financial statement purposes. The provisions for federal income taxes for the years ended December 31, 2023, 2022 and 2021 included amounts currently payable and deferred income taxes resulting from the cumulative differences in the Company's assets and liabilities, determined on a tax return versus financial statement basis. Deferred tax assets and liabilities include provisions for net unrealized investment gains (losses) on fixed maturity securities as well as the net funded status of benefit plans with the changes for each period included in the respective components of AOCI within shareholders' equity. |
Earnings Per Share | Earnings Per Share |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows |
Future Adoption of New Accounting Standards | Recent Adoption of New Accounting Standards Accounting for Long-Duration Insurance Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date, and (ii) ASU 2020-11, Financial Services - Insurance (Topic 944): Effective Date and Early Application (collectively referred to herein as ASU 2018-12). ASU 2018-12 changed existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts. ASU 2018-12 includes: (1) a requirement to review and, if there is a change, update cash flow assumptions used to measure the liability for future policy benefits (LFPB) at least annually, and to update the discount rate assumption quarterly, (2) a requirement to account for market risk benefits (MRBs) at fair value, (3) simplified amortization for deferred policy acquisition costs (DAC), and (4) enhanced financial statement presentation and disclosures. ASU 2018-12 became effective for the Company for interim and annual periods beginning after December 15, 2022. The Company adopted ASU 2018-12 for LFPB and DAC on a modified retrospective basis such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. The Company adopted ASU 2018-12 for MRBs on a full retrospective basis, using hindsight where necessary. For variable annuities, actuarial assumptions (mortality, lapse, and premium payment patterns) used to measure MRBs were unobservable for years prior to 2006 and thus, hindsight was used to determine relevant assumptions for transition purposes. The factors used in applying hindsight included internal experience studies, the historical economic environment, actual performance of the business, and relevant industry information. For LFPB, the net transition adjustment is related to the difference in the discount rate used pre-transition and the discount rate at January 1, 2021. At transition, the Company had several instances, at the cohort level, where net premiums exceeded gross premiums which were recorded as an adjustment to retained earnings. For DAC, the Company removed shadow adjustments previously recorded in accumulated other comprehensive income (loss) (i.e., AOCI) for the impact of net unrealized investment gains (losses) that were included in the pre-ASU 2018-12 expected gross profits amortization calculation as of the transition date. For MRBs, the transition adjustment to AOCI relates to the cumulative effect of changes in the instrument-specific credit risk between contract issue date and transition date. The remaining difference between the fair value and carrying amount of MRBs at transition, excluding the amounts recorded in AOCI, was recorded as an adjustment to retained earnings as of the transition date. While the requirements of ASU 2018-12 represent a significant change from legacy GAAP, the adoption of ASU 2018-12 did not impact cash flows on the Company’s policies, or the underlying economics of the Company’s business. The Company's insurance subsidiaries' risk-based capital amounts and ratios, and regulatory dividends are not impacted as the NAIC rejected ASU 2018-12. See Note 18 for summarization of the effects of adopting ASU 2018-12 on the Company's 2022 and 2021 Consolidated Financial Statements. Future Adoption of New Accounting Standards Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 includes: 1) a requirement to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, 2) a requirement to disclose an amount for other segment items by reportable segment and a description of its composition, 3) a requirement to disclose a reportable segments profit or loss and assets currently required by Topic 280 in interim periods, 4) clarifies that in addition to the measure that is most consistent with the measurement principles under generally accepted accounting principles (GAAP), a public entity is not precluded from reporting additional measures of a segment's profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources, and 5) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This guidance will be effective for the Company for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the Company for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Deferred Policy Acquisition Costs Asset by Segment | The Company's DAC by reporting segment was as follows (2022 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 Property & Casualty $ 29.3 $ 24.5 Life & Retirement 297.7 299.5 Supplemental & Group Benefits 9.3 6.6 Total $ 336.3 $ 330.6 |
Schedule of Property and Equipment | The following amounts are included in Other assets in the Consolidated Balance Sheets: ($ in millions) December 31, 2023 2022 Property and equipment $ 129.4 $ 148.3 Less: accumulated depreciation 60.8 79.0 Total $ 68.6 $ 69.3 |
Schedule of FHLB Funding Agreements | As of December 31, 2023, scheduled maturity dates for outstanding FHLB funding agreements were as follows: ($ in millions) Amount Interest Rate Maturity Date $ 25.0 5.6 % September 09, 2026 50.0 5.7 % February 13, 2026 10.0 5.7 % February 13, 2026 200.0 5.6 % January 16, 2026 125.0 0.6 % September 11, 2025 12.5 0.7 % June 26, 2025 30.0 5.7 % February 28, 2025 10.0 5.7 % February 28, 2025 10.0 0.5 % February 14, 2025 40.0 5.7 % February 07, 2025 31.0 5.7 % February 07, 2025 60.0 5.8 % January 10, 2025 25.0 5.8 % January 10, 2025 6.0 5.8 % January 10, 2025 100.0 5.6 % December 13, 2024 5.0 5.7 % August 28, 2024 10.0 5.7 % August 28, 2024 50.0 5.7 % May 22, 2024 10.0 5.7 % May 22, 2024 20.0 5.7 % April 24, 2024 25.0 5.7 % April 03, 2024 50.0 5.8 % January 12, 2024 Total $ 904.5 |
Schedule of Stock Options Fair Value Pricing Model Weighted-Average Assumptions | The fair value of stock options granted was estimated on the respective dates of grant using the Black-Scholes option pricing model with the weighted average assumptions shown in the following table. Year Ended December 31, 2023 2022 2021 Number of stock options granted 209,028 162,224 183,272 Weighted average grant date fair value of stock options granted $ 8.50 $ 8.51 $ 7.73 Weighted average assumptions: Risk-free interest rate 4.1 % 1.9 % 0.8 % Expected dividend yield 3.6 % 3.2 % 3.0 % Expected life, in years 5.3 5.2 5.1 Expected volatility (based on historical volatility) 30.9 % 30.2 % 30.1 % |
Summary of Contributions to Qualified Defined Contribution Plan, 401(k), Non-Qualified Defined Contribution Plan and Total Assets of the Plans | For the two qualified plans, all assets are held in their respective plan trusts. The assets and projected benefit obligation at the end of the year are as follows: ($ in millions) Year Ended December 31, 2023 2022 401(k) plan assets $ 245.7 $ 207.1 Defined benefit plan assets 13.9 13.6 Projected benefit obligation 16.2 17.2 |
Schedule of Computations of Net Income Per Share on both Basic and Diluted Bases, Including Reconciliations of the Numerators and Denominators | The computations of net income (loss) per share on both basic and diluted bases, including reconciliations of the numerators and denominators, were as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) Year Ended December 31, 2023 2022 2021 Basic: Net income (loss) for the period $ 45.0 $ 19.8 $ 170.4 Weighted average number of common shares during the period (in millions) 41.3 41.6 42.0 Net income (loss) per share - basic $ 1.09 $ 0.48 $ 4.06 Diluted: Net income (loss) for the period $ 45.0 $ 19.8 $ 170.4 Weighted average number of common shares during the period (in millions) 41.3 41.6 42.0 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities (in millions): Stock options — — — CSUs related to deferred compensation for employees — — — RSUs related to incentive compensation 0.1 0.2 0.2 Total common and common equivalent shares adjusted to calculate diluted earnings per share (in millions) 41.4 41.8 42.2 Net income (loss) per share - diluted $ 1.09 $ 0.47 $ 4.04 |
Schedule of Liability for Future Policy Benefit, Activity | The following table summarizes the balance of and changes in LFPB on January 1, 2021 due to adoption of ASU 2018-12. The impact of shifts between deferred profit liabilities (DPL) and LFPB for limited-payment products are presented as offsetting line items in the effect of net premiums exceeding gross premiums and the effect of decrease/increase of DPL. ($ in millions) Whole Life Term Life Experience Life Limited Pay Whole Life Supplemental Health (1) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 0 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables, end of year December 31, 2020 (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 (1) As of January 1, 2021, the net LFPB for Supplemental Health was $163.5 million for cancer, $31.2 million for accident, $32.0 million for disability and $188.8 million for other supplemental health policies. The following tables summarize balances and changes in LFPB for traditional and limited-payment contracts. The balances of and changes in LFPB as of and for the year ended December 31, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at January 1, 2023 $ 215.1 $ 234.7 $ 68.3 $ 29.7 $ 167.4 $ — January 1, 2023 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (16.8) 3.7 (0.2) 6.5 — Actual variances from expected experience 3.8 (2.7) 0.7 1.0 (1.6) — Adjusted balance at January 1, 2023 249.7 245.9 69.9 33.2 210.0 — Issuances (3) 10.8 25.2 — 4.3 19.4 5.6 Interest accruals (4) 7.2 10.3 3.7 1.2 6.0 — Net premiums collected (5) (20.6) (24.8) (6.6) (4.8) (22.0) (5.6) December 31, 2023 balance at original discount rate 247.1 256.6 67.0 33.9 213.4 — Effect of changes in discount rate assumptions (23.9) (16.6) 4.7 (1.7) (31.4) — Balance at December 31, 2023 223.2 240.0 71.7 32.2 182.0 — Present value of expected future policy benefits: Balance at January 1, 2023 493.6 347.0 867.5 79.4 431.7 103.3 January 1, 2023 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of: Changes in cash flow assumptions (0.6) (16.7) 5.0 (0.2) 8.9 — Actual variances from expected experience 4.0 1.3 1.1 1.0 (2.4) (0.8) Adjusted balance at January 1, 2023 585.3 385.6 811.3 99.4 543.6 112.6 Issuances 10.7 25.8 — 4.3 19.4 6.3 Interest accruals 19.0 15.2 47.4 3.9 14.4 4.4 Benefit payments (6) (22.9) (21.2) (61.2) (2.0) (59.5) (11.9) December 31, 2023 balance at original discount rate 592.1 405.4 797.5 105.6 517.9 111.4 Effect of changes in discount rate assumptions (70.1) (35.3) 85.5 (16.0) (90.3) (7.2) Balance at December 31, 2023 522.0 370.1 883.0 89.6 427.6 104.2 Net liability for future policy benefits 298.8 130.2 811.3 57.4 245.6 104.2 Less: Reinsurance recoverable (64.3) (19.1) (1.0) (1.2) (4.0) (3.6) Net liability for future policy benefits, after reinsurance recoverable 234.5 111.1 810.3 56.2 241.6 100.6 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at December 31, 2023 $ 234.5 $ 111.1 $ 810.3 $ 56.2 $ 241.6 $ 100.6 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2023, the net LFPB for Supplemental Health was $92.7 million for cancer, $21.4 million for accident, $23.5 million for disability and $104.0 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present Value of Expected Net Premiums Balance at January 1, 2022 (7) $ 260.7 $ 264.4 $ 74.6 $ 29.7 $ 226.7 $ — January 1, 2022 balance at original discount rate (7) 239.3 235.4 55.9 27.2 223.1 — Effect of: Change in cash flow assumptions 5.2 18.7 9.1 2.0 12.2 — Actual variances from expected experience 7.2 (4.2) 3.0 1.6 (25.3) — Adjusted balance at January 1, 2022 251.7 249.9 68.0 30.8 210.0 — Issuances (3) 12.5 28.0 — 6.3 12.0 5.3 Interest accruals (4) 6.7 9.0 3.3 1.1 5.9 — Net premiums collected (5) (25.0) (21.5) (5.8) (5.8) (22.8) (5.3) December 31, 2022 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of changes in discount rate assumptions (30.8) (30.7) 2.8 (2.7) (37.7) — Balance at December 31, 2022 215.1 234.7 68.3 29.7 167.4 — Present Value of Expected Future Policy Benefits Balance at January 1, 2022 (7) 660.4 411.5 1,172.7 102.9 590.6 129.1 January 1, 2022 balance at original discount rate (7) 566.1 360.0 802.6 86.6 584.2 115.7 Effect of: Changes in cash flow assumptions 5.2 21.5 11.0 2.0 13.8 — Actual variances from expected experience 7.7 (4.7) 3.6 1.4 (30.0) 0.4 Adjusted balance at January 1, 2022 579.0 376.8 817.2 90.0 568.0 116.1 Issuances 12.4 28.3 — 6.4 12.0 5.3 Interest accruals 18.0 14.4 47.4 3.4 15.0 4.3 Benefit payments (6) (27.5) (18.5) (59.4) (1.2) (57.9) (12.3) December 31, 2022 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of changes in discount rate assumptions (88.3) (54.0) 62.3 (19.2) (105.4) (10.1) Balance at December 31, 2022 493.6 347.0 867.5 79.4 431.7 103.3 Net liability for future policy benefits 278.4 112.2 799.3 49.6 264.4 103.3 Less: Reinsurance recoverable (63.1) (15.3) (0.8) — (3.4) (3.2) Net liability for future policy benefits, after reinsurance recoverable 215.3 96.9 798.5 49.6 261.0 100.1 Impact of flooring on net liability for future policy benefits 1.1 0.2 — — — — Net liability for future policy benefits at December 31, 2022 $ 216.4 $ 97.1 $ 798.5 $ 49.6 $ 261.0 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. (7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022. The balances of and changes in LFPB (including a summary of the balance and changes in the LFPB on January 1, 2021 due to adoption of ASU 2018-12) as of and for the year ended December 31, 2021 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Change in cash flow assumptions, effect of decrease of the DPL — — — — — — Adjustment for removal of related balances in AOCI — — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 Present Value of Expected Net Premiums Balance at January 1, 2021 $ 176.5 $ 244.1 $ 78.0 $ 25.4 $ 233.0 $ — January 1, 2021 balance at original discount rate 143.5 200.8 55.2 22.0 218.2 — Effect of: Change in cash flow assumptions 2.4 (4.5) (3.3) — (1.8) — Actual variances from expected experience 8.8 6.9 6.3 1.0 6.3 — Adjusted balance at January 1, 2021 154.7 203.2 58.2 23.0 222.7 — Issuances (3) 13.3 29.8 — 10.2 13.0 3.7 Interest accruals (4) 6.2 7.9 3.2 0.8 5.9 — Net premiums collected (5) (16.6) (19.8) (5.6) (6.8) (24.1) (3.7) December 31, 2021 balance at original discount rate 157.6 221.1 55.8 27.2 217.5 — Effect of changes in discount rate assumptions 25.4 32.0 18.8 2.5 4.0 — Balance at December 31, 2021 183.0 253.1 74.6 29.7 221.5 — Present Value of Expected Future Policy Benefits Balance at January 1, 2021 507.1 364.7 1,269.3 95.0 626.9 136.5 January 1, 2021 balance at original discount rate 362.5 294.0 813.5 73.4 589.1 115.9 Effect of: Changes in cash flow assumptions 2.8 (4.8) (3.6) — (3.0) — Actual variances from expected experience 8.7 7.2 6.6 1.1 6.2 (0.4) Adjusted balance at January 1, 2021 374.0 296.4 816.5 74.5 592.3 115.5 Issuances 13.3 29.8 — 10.2 13.0 3.7 Interest accruals 17.1 12.0 47.9 2.9 15.7 4.5 Benefit payments (6) (18.1) (18.7) (61.9) (1.0) (48.4) (12.1) December 31, 2021 balance at original discount rate 386.3 319.5 802.5 86.6 572.6 111.6 Effect of changes in discount rate assumptions 114.4 51.1 370.2 16.3 8.0 13.1 Balance at December 31, 2021 500.7 370.6 1,172.7 102.9 580.6 124.7 Net liability for future policy benefits 317.7 117.6 1,098.1 73.2 359.1 124.7 Less: Reinsurance recoverable (0.5) (5.5) (1.1) (0.2) — — Net liability for future policy benefits, after reinsurance recoverable $ 317.2 $ 112.1 $ 1,097.0 $ 73.0 $ 359.1 $ 124.7 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2021, the net LFPB for Supplemental Health was $140.8 million for cancer, $28.7 million for accident, $29.3 million for disability and $160.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) The following tables summarize the amount of revenue from gross premiums or assessment and interest expense related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): ($ in millions) Gross premiums or assessments Year Ended December 31, 2023 2022 Whole life $ 28.1 $ 25.9 Term life 45.2 42.4 Experience life 32.1 33.5 Limited-pay whole life 7.2 8.1 Supplemental health 120.3 121.2 SPIA (life contingent) 6.1 5.7 Total $ 239.0 $ 236.8 ($ in millions) Interest expense Year Ended December 31, 2023 2022 Whole life $ 11.8 $ 11.3 Term life 4.8 4.4 Experience life 43.7 44.2 Limited-pay whole life 2.6 2.4 Supplemental health 8.4 9.1 SPIA (life contingent) 4.4 4.4 Total $ 75.7 $ 75.8 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts: ($ in millions) As of December 31, 2023 As of Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 478.8 $ 325.0 $ 469.0 $ 322.5 Expected future benefits and expenses 1,152.8 592.1 1,121.4 580.4 Term life Expected future gross premiums 689.0 449.4 739.3 464.2 Expected future benefits and expenses 682.7 405.4 678.0 401.0 Experience Life Expected future gross premiums 530.0 296.1 569.6 315.5 Expected future benefits and expenses 1,703.1 797.5 1,755.4 805.2 Limited-pay whole life Expected future gross premiums 64.7 49.1 60.8 46.5 Expected future benefits and expenses 244.9 105.6 226.8 98.6 Supplemental health Expected future gross premiums 1,624.1 1,192.5 1,640.5 1,214.9 Expected future benefits and expenses 719.4 517.9 730.7 537.1 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 156.1 111.4 157.7 113.4 The following table provides the weighted-average durations of LFPB, in years: As of December 31, 2023 2022 Whole life 18.0 18.3 Term life 16.7 16.8 Experience life 10.3 10.6 Limited-pay whole life 22.1 22.9 Supplemental health 10.7 10.1 SPIA (life contingent) 7.6 7.7 The following table provides ranges of the weighted-average interest rates for LFPB: As of December 31, 2023 2022 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 4.9% Current discount rate 4.4% - 5.0% 4.7% - 5.3% Term life Interest accretion rate 4.2% - 4.3% 4.1% -4.3% Current discount rate 4.9% - 5.0% 5.3% - 5.3% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.0 % 5.3 % Limited-pay whole life Interest accretion rate 4.0 % 3.9 % Current discount rate 5.1 % 5.3 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.0% - 5.2% 5.3% - 5.5% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.0% Current discount rate 4.9% - 4.9% 5.2% - 5.2% |
Schedule of Deferred Policy Acquisition Costs | The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 DAC and Deferred Sales Inducements The following tables roll-forward DAC for the periods indicated: ($ in millions) Year Ended December 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 Capitalizations 2.7 5.8 0.3 1.1 2.5 2.9 15.0 Amortization expense (1.2) (3.1) (0.4) (0.3) (1.0) (0.6) (14.7) Experience adjustment (0.1) (0.1) — (0.1) (0.1) (0.3) (7.4) Balance, end of period $ 22.3 $ 32.6 $ 5.7 $ 7.4 $ 16.8 $ 8.2 $ 214.0 ($ in millions) Year Ended December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of year $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 Capitalizations 3.0 5.0 0.2 1.4 2.5 1.8 15.5 Amortization expense (1.2) (2.5) (0.4) (0.3) (0.8) (0.5) (15.8) Experience adjustment — — — — — — (1.9) Balance, end of year $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 ($ in millions) Year Ended December 31, 2021 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 Capitalizations 2.4 4.2 0.2 1.5 1.7 1.1 17.3 Amortization expense (1.1) (2.3) (0.4) (0.3) (0.8) (0.5) (16.0) Experience adjustment — — — — (0.1) — (1.1) Balance, end of year December 31, 2021 $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 |
Schedule of Market Risk Benefit, Activity | The following table summarizes the balance of and changes in the net liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Balance, end of year December 31, 2020 $ 0.1 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 6.8 Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance 1.7 Total adjustment for the difference between carrying amount and fair value 8.5 Balance, beginning of year January 1, 2021 8.6 Less: Reinsurance recoverable — Balance, beginning of year January 1, 2021, net of reinsurance $ 8.6 The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the year ended December 31, 2023 and 2022, respectively: ($ in millions) Year Ended December 31, 2023 2022 Balance, beginning of period $ 0.3 $ 4.8 Balance, beginning of period, before effects of changes in the instrument-specific credit risk — 2.0 Changes in market risk benefits (1) (4.5) (2.0) Balance, end of period (2) $ (4.5) $ — Effect of changes in the instrument-specific credit risk 0.6 0.3 Balance, end of period $ (3.9) $ 0.3 Net amount at risk (3) $ 20.5 $ 55.3 Weighted-average attained age of contract holders 62 61 (1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets. ($ in millions) As of December 31, 2023 As of December 31, 2022 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (6.7) $ 2.8 $ (3.9) $ (4.4) $ 4.7 $ 0.3 |
Schedule of Changes in Accounting Policies | The following table presents the effect of the after-tax transition adjustments on consolidated shareholders' equity due to adoption of ASU 2018: ($ in millions) January 1, 2021 AOCI Retained Earnings Liability for future policy benefits $ (496.4) $ (0.2) Deferred policy acquisition costs 71.1 — Deferred sales inducements — — Market risk benefits (1.3) (5.3) Total $ (426.6) $ (5.5) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Components of Net Investment Income | The components of net investment income for the following periods were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Fixed maturity securities $ 269.2 $ 247.2 $ 235.6 Equity securities 6.5 9.0 5.3 Limited partnership interests 59.1 40.5 79.0 Short-term and other investments 17.2 11.2 11.6 Investment expenses (12.1) (10.5) (10.1) Net investment income - investment portfolio 339.9 297.4 321.4 Investment income - deposit asset on reinsurance 104.9 103.5 101.1 Total net investment income $ 444.8 $ 400.9 $ 422.5 |
Schedule of Net Investment Gains (Losses) | Net investment losses for the following periods were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Fixed maturity securities $ (20.3) $ (29.1) $ (7.7) Equity securities (3.9) (32.6) (0.8) Short-term investments and other 0.2 5.2 (2.5) Net investment losses $ (24.0) $ (56.5) $ (11.0) The breakdown of net investment gains (losses) by transaction type for the following periods were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Credit loss impairments $ (0.4) $ (3.1) $ (8.1) Intent-to-sell impairments (6.7) (7.6) (2.3) Total impairments (7.1) (10.7) (10.4) Sales and other, net (25.0) (17.8) 4.3 Change in fair value - equity securities 7.9 (33.2) (2.3) Change in fair value and losses realized on settlements - derivatives 0.2 5.2 (2.6) Net investment losses $ (24.0) $ (56.5) $ (11.0) |
Schedule of Allowance for Credit Loss Impairments on Fixed Maturity Securities | The following table presents changes in the allowance for credit loss impairments on fixed maturity securities classified as available for sale for the category of other asset-backed securities (no other categories of fixed maturity securities have an allowance for credit loss impairments): ($ in millions) Year Ended December 31, 2023 2022 2021 Beginning balance $ 1.2 $ 7.7 $ — Credit losses on fixed maturity securities for which credit losses were not previously reported — — 8.1 Net increases (decreases) related to credit losses previously reported — 3.1 — Reduction of credit allowances related to sales — (9.2) — Write-offs — (0.4) (0.4) Ending balance $ 1.2 $ 1.2 $ 7.7 |
Schedule of Available-for-sale Securities Reconciliation | Amortized cost, net, gross unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows: ($ in millions) Amortized Gross Gross Fair December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 713.4 $ 4.4 $ 64.6 $ 653.2 Other, including U.S. Treasury securities 450.8 0.8 62.8 388.8 Municipal bonds 1,333.4 28.6 91.9 1,270.1 Foreign government bonds 23.1 — 1.0 22.1 Corporate bonds 1,969.9 23.1 220.3 1,772.7 Other asset-backed securities 1,162.3 6.0 39.9 1,128.4 Totals $ 5,652.9 $ 62.9 $ 480.5 $ 5,235.3 December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 638.2 $ 1.3 $ 69.1 $ 570.4 Other, including U.S. Treasury securities 410.0 0.5 67.8 342.7 Municipal bonds 1,380.9 16.9 128.1 1,269.7 Foreign government bonds 35.1 — 1.6 33.5 Corporate bonds 2,161.2 12.7 272.2 1,901.7 Other asset-backed securities 1,131.5 3.6 68.1 1,067.0 Totals $ 5,756.9 $ 35.0 $ 606.9 $ 5,185.0 |
Schedule of Fair Value and Gross Unrealized Losses of Fixed Maturity Securities and Equity Securities in an Unrealized Loss Position | The following table presents the fair value and gross unrealized losses for fixed maturity securities in an unrealized loss position as of December 31, 2023 and 2022. The Company views the decrease in fair value of all fixed maturity securities with unrealized losses as of December 31, 2023 as due to factors other than a credit loss. As of December 31, 2023, the Company has not made the decision to sell and it is more likely than not the Company will not be required to sell the fixed maturity securities with unrealized losses before a recovery of the amortized cost basis. In reaching our conclusion that an allowance for credit is unnecessary, we considered the factors described in the Application of Critical Accounting Estimates - Evaluation of Credit Loss Impairments for Fixed Maturity Securities. The performance of fixed maturity securities has been impacted by the change in interest rates, specifically interest rates being at relatively high levels compared to interest rates at the time of acquisition of the securities. Following significant increases in interest rates throughout 2022, driven mostly by increases in risk-free rates, rates stabilized during 2023 but remain at elevated levels. In consideration of the factors, we expect to receive cash flows sufficient to recover the entire amortized cost basis of the securities in the following table. ($ in millions) 12 months or less More than 12 months Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2023 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 45.3 $ 0.8 $ 458.5 $ 63.8 $ 503.8 $ 64.6 Other 39.5 0.4 288.0 62.4 327.5 62.8 Municipal bonds 64.5 0.9 724.6 91.0 789.1 91.9 Foreign government bonds 1.5 — 20.6 1.0 22.1 1.0 Corporate bonds 195.0 25.4 1,171.3 194.9 1,366.3 220.3 Other asset-backed securities 133.4 0.8 752.5 39.1 885.9 39.9 Total $ 479.2 $ 28.3 $ 3,415.5 $ 452.2 $ 3,894.7 $ 480.5 Number of positions with a gross unrealized loss 195 2,305 2,500 Fair value as a percentage of total fixed maturities securities fair value 9.2 % 65.2 % 74.4 % December 31, 2022 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 458.3 $ 54.4 $ 52.6 $ 14.7 $ 510.9 $ 69.1 Other 242.7 34.1 65.8 33.7 308.5 67.8 Municipal bonds 911.6 113.7 42.2 14.4 953.8 128.1 Foreign government bonds 32.7 1.4 0.4 0.2 33.1 1.6 Corporate bonds 1,345.0 221.1 148.9 51.1 1,493.9 272.2 Other asset-backed securities 543.4 37.1 424.3 31.0 967.7 68.1 Total $ 3,533.7 $ 461.8 $ 734.2 $ 145.1 $ 4,267.9 $ 606.9 Number of positions with a gross unrealized loss 2,515 587 3,102 Fair value as a percentage of total fixed maturities securities fair value 68.2 % 14.2 % 82.4 % |
Schedule of Distribution of the Company's Fixed Maturity Portfolio by Estimated Expected Maturity | With regards to fixed maturity securities that had gross unrealized losses more than 12 months, the number of positions by their respective credit ratings was as follows: Number of Positions December 31, 2023 2022 Credit Rating AAA 226 67 AA 1,006 217 A 423 94 BBB 448 93 Total investment grade 2,103 471 BB 93 68 B 39 31 CCC or lower 7 2 Total below investment grade 139 101 Not rated 63 15 Totals: 2,305 587 The following table presents the distribution of the Company's fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. ($ in millions) December 31, 2023 Amortized Fair Percent of Estimated expected maturity: Due in 1 year or less $ 298.6 $ 294.1 5.6 % Due after 1 year through 5 years 1,482.4 1,435.5 27.4 % Due after 5 years through 10 years 1,435.1 1,371.5 26.2 % Due after 10 years through 20 years 1,426.3 1,282.6 24.5 % Due after 20 years 1,010.5 851.6 16.3 % Total $ 5,652.9 $ 5,235.3 100.0 % |
Schedule of Proceeds Received From Sales of Fixed Maturities and Equity Securities | Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each year were as follows: ($ in millions) Year Ended December 31, 2023 2022 2021 Fixed maturity securities Proceeds received $ 377.6 $ 752.0 $ 578.2 Gross gains realized 2.2 5.5 10.5 Gross losses realized (14.0) (23.7) (7.7) Equity securities Proceeds received $ 18.7 $ 10.8 $ 4.7 Gross gains realized — 1.7 1.5 Gross losses realized (11.8) (1.0) (0.1) |
Schedule of Reconciliation of Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities and Equity Securities | The following table reconciles the net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI: ($ in millions) Year Ended December 31, 2023 2022 2021 Net unrealized investment gains (losses) on fixed maturity securities, net of tax Beginning of period $ (449.6) $ 347.1 $ 366.3 Effect of adopting ASU 2018-12 — — 71.1 Change in net unrealized investment gains (losses) on fixed maturity securities 105.3 (819.7) (96.4) Reclassification of net investment (gains) losses on fixed maturity securities to net income 16.0 23.0 6.1 End of period $ (328.3) $ (449.6) $ 347.1 |
Schedule of Carrying Amounts of Equity Method Limited Partnership Interests | The carrying amounts of EMA limited partnership interests were as follows: ($ in millions) December 31, 2023 2022 Commercial mortgage loan funds $ 660.8 $ 593.6 Real estate equity funds 109.2 71.3 Private equity funds 92.7 76.3 Infrastructure equity funds 77.2 72.0 Infrastructure debt funds 59.1 60.0 Other funds (1) 139.8 110.5 Total $ 1,138.8 $ 983.7 (1) Other funds consist primarily of limited partnership interests in corporate mezzanine, venture capital, and private credit funds. |
Schedule of Offsetting Assets and Liability | The following table presents instruments that were subject to a master netting arrangement for the Company. ($ in millions) Gross Net Amounts Gross Amounts Not Offset Gross Financial Cash Net December 31, 2023 Asset derivatives Free-standing derivatives $ 19.0 $ — $ 19.0 $ — $ 18.5 $ 0.5 December 31, 2022 Asset derivatives Free-standing derivatives $ 6.8 $ — $ 6.8 $ — $ 5.9 $ 0.9 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Fair Value Hierarchy Measured at Recurring Basis | The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. As of December 31, 2023, Level 3 investments comprised approximately 9.5% of the Company's total investment portfolio at fair value. ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 December 31, 2023 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 653.2 $ 653.2 $ — $ 653.2 $ — Other, including U.S. Treasury securities 388.8 388.8 45.6 343.2 — Municipal bonds 1,270.1 1,270.1 — 1,196.1 74.0 Foreign government bonds 22.1 22.1 — 22.1 — Corporate bonds 1,772.7 1,772.7 10.1 1,420.1 342.5 Other asset-backed securities 1,128.4 1,128.4 — 1,030.9 97.5 Total fixed maturity securities 5,235.3 5,235.3 55.7 4,665.6 514.0 Equity securities 86.2 86.2 17.9 63.8 4.5 Short-term investments 132.9 132.9 132.9 — — Other investments 19.0 19.0 — 19.0 — Totals $ 5,473.4 $ 5,473.4 $ 206.5 $ 4,748.4 $ 518.5 Separate Account variable annuity assets (1) $ 3,294.1 $ 3,294.1 $ 3,294.1 $ — $ — Financial Liabilities (2) $ 86.0 $ 86.0 $ — $ 3.6 $ 82.4 December 31, 2022 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 570.4 $ 570.4 $ — $ 567.8 $ 2.6 Other, including U.S. Treasury securities 342.6 342.6 24.6 318.0 — Municipal bonds 1,269.7 1,269.7 — 1,215.3 54.4 Foreign government bonds 33.6 33.6 — 33.6 — Corporate bonds 1,901.7 1,901.7 12.2 1,628.2 261.3 Other asset-backed securities 1,067.0 1,067.0 — 962.0 105.0 Total fixed maturity securities 5,185.0 5,185.0 36.8 4,724.9 423.3 Equity securities 99.6 99.6 23.3 74.3 2.0 Short-term investments 109.4 109.4 109.4 — — Other investments 38.6 38.6 — 38.6 — Totals $ 5,432.6 $ 5,432.6 $ 169.5 $ 4,837.8 $ 425.3 Separate Account variable annuity assets (1) $ 2,792.3 $ 2,792.3 $ 2,792.3 $ — $ — Financial Liabilities (2) $ 92.5 $ 92.5 $ — $ 1.2 $ 91.3 (1) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of Separate Account variable annuity assets. (2) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. |
Schedule of Table for Reconciliations for all Level 3 Assets Measured at Fair Value on a Recurring Basis | The following tables present reconciliations for the periods indicated for all Level 3 financial assets and financial liabilities measured at fair value on a recurring basis. ($ in millions) Financial Assets Financial Liabilities (1) Municipal Corporate Mortgage-Backed and Other Asset- Backed Securities (2) Total Equity Total Beginning balance, January 1, 2023 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.3 Transfers into Level 3 (3) — 76.5 0.8 77.3 2.1 79.4 — Transfers out of Level 3 (3) — (3.7) — (3.7) — (3.7) — Total gains or losses Net investment gains (losses) included in net income — — — — 0.4 0.4 — Net investment (gains) losses included in net income related to financial liabilities — — — — — — 1.3 Net unrealized investment gains (losses) included in OCI 11.3 (17.1) 5.0 (0.8) — (0.8) 0.4 Purchases 9.5 64.5 2.0 76.0 — 76.0 — Issuances — — — — — — 8.0 Sales — (7.7) — (7.7) — (7.7) — Settlements — — — — — — — Paydowns, maturities and distributions (1.2) (31.3) (17.9) (50.4) — (50.4) (18.6) Ending balance, December 31, 2023 $ 74.0 $ 342.5 $ 97.5 $ 514.0 $ 4.5 $ 518.5 $ 82.4 Beginning balance, January 1, 2022 $ 60.8 $ 210.3 $ 98.9 $ 370.0 $ 1.4 $ 371.4 $ 111.4 Transfers into Level 3 (3) 0.6 157.9 34.5 193.0 0.8 193.8 — Transfers out of Level 3 (3) (3.2) (34.8) (4.8) (42.8) — (42.8) — Total gains or losses Net investment gains (losses) included in net income — — (3.3) (3.3) (0.1) (3.4) — Net investment (gains) losses included in net income related to financial liabilities — — — — — — (14.8) Net unrealized investment gains (losses) included in OCI (10.5) (16.1) (11.6) (38.2) — (38.2) (2.6) Purchases 0.2 20.2 12.8 33.2 — 33.2 — Issuances — — — — — — 7.4 Sales — — (4.8) (4.8) — (4.8) — Settlements — — — — — — — Paydowns, maturities and distributions 6.5 (76.2) (14.1) (83.8) (0.1) (83.9) (10.1) Ending balance, December 31, 2022 $ 54.4 $ 261.3 $ 107.6 $ 423.3 $ 2.0 $ 425.3 $ 91.3 (1) Represents embedded derivatives, all related to the Company's FIA products, reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the years ended December 31, 2023 and 2022 were attributable to changes in the availability of observable market information for individual fixed maturity securities and short-term investments. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions, 2022 information recast for the adoption of LDTI): ($ in millions) Total Internal External December 31, 2023 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 74.0 — 74.0 Corporate bonds 342.5 180.4 162.1 Other asset-backed securities 97.5 — 97.5 Total fixed maturity securities 514.0 180.4 333.6 Equity securities 4.5 — 4.5 Totals $ 518.5 $ 180.4 $ 338.1 Financial Liabilities (1) $ 82.4 $ 82.4 $ — December 31, 2022 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 2.6 $ — $ 2.6 Municipal bonds 54.4 — 54.4 Corporate bonds 261.3 9.5 251.8 Other asset-backed securities 105.0 — 105.0 Total fixed maturity securities 423.3 9.5 413.8 Equity securities 2.0 — 2.0 Totals $ 425.3 $ 9.5 $ 415.8 Financial Liabilities (1) $ 91.3 $ 91.3 $ — (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3. ($ in millions) Fair Value at December 31, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 180.4 discounted cash flow yield 6.7% - 17.0% Decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 86.3 discounted cash flow lapse rate 5.9% Decrease mortality multiplier (2) 69.4% Decrease option budget 0.9% - 3.8% Increase non-performance adjustment (3) 5.0% Decrease Net MRBs $ (3.9) discounted cash flow lapse rate 5.9% Decrease mortality multiplier (2) 67.8% Increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. ($ in millions) Fair Value at December 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 9.5 discounted cash flow yield 6.8% Decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 91.0 discounted cash flow lapse rate 5.4% Decrease mortality multiplier (2) 67.8% Decrease option budget 0.9% - 3.4% Increase non-performance adjustment (3) 5.0% Decrease Net MRBs $ 0.3 discounted cash flow lapse rate 5.3% Decrease mortality multiplier (2) 67.8% Increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: December 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.7% 1.6 % 0.2 % N.M. Expected experience 0.7 % 0.1% - 2.3% 1.6 % 0.3 % N.M. Lapses Actual experience 3.4 % 5.3% - 13.0% 3.2 % 4.2 % N.M. Expected experience 4.8 % 5.8% - 36.8% 3.1 % 5.4 % N.M. December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.3% 1.6 % 0.3 % N.M. Expected experience 0.7 % 0.1% - 1.0% 1.4 % 0.2 % N.M. Lapses Actual experience 3.2 % 5.7% - 58.1% 3.3 % 3.8 % N.M. Expected experience 5.9 % 6.6% - 9.8% 3.2 % 7.6 % N.M. |
Summary of Fair Value Assets and Liabilities Measured on Nonrecurring Basis | ($ in millions) Carrying Fair Fair Value Measurements at Level 1 Level 2 Level 3 December 31, 2023 Financial Assets Other investments $ 218.4 $ 221.7 $ — $ 33.8 $ 187.9 Deposit asset on reinsurance 2,496.6 2,259.6 — — 2,259.6 Financial Liabilities Policyholders' account balances 4,996.3 4,861.8 — — 4,861.8 Other policyholder funds 916.0 916.0 — 908.7 7.3 Long-term debt 546.0 571.4 — 571.4 — December 31, 2022 Financial Assets Other investments $ 167.4 $ 170.9 $ — $ — $ 170.9 Deposit asset on reinsurance 2,516.6 2,207.2 — — 2,207.2 Financial Liabilities Policyholders' account balances 5,039.7 4,940.3 — — 4,940.3 Other policyholder funds 863.0 863.0 — 810.7 52.3 Reverse repurchase agreements 70.2 73.9 — 73.9 — Short-term debt 249.0 249.0 — — 249.0 Long-term debt 249.0 240.5 — 240.5 — |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivatives, including derivatives embedded in FIA and IUL contracts, are presented in the Consolidated Balance Sheets as follows: ($ in millions) December 31, 2023 2022 Assets Derivatives, reported in Short-term and other investments $ 19.0 $ 6.8 Liabilities FIA - embedded derivatives, reported in Policyholders' account balances 86.3 91.0 IUL - embedded derivatives, reported in Policyholders' account balances 3.6 1.2 |
Schedule of Derivative Instruments, Gain (Loss) | The changes in fair value of derivatives included in the Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: ($ in millions) Years Ended December 31, 2023 2022 2021 Change in fair value of derivatives: (1) Net investment gains (losses) $ 7.4 $ (9.7) $ 8.7 Change in fair value of embedded derivatives: Net investment gains (losses) (7.2) 14.9 (11.3) (1) Includes gains (losses) recognized at option expiration or early termination and changes in fair value for open positions. |
Schedule of Financing Receivable Credit Quality Indicators | The notional amount and fair value of call options by counterparty and each counterparty's long-term credit ratings were as follows: ($ in millions) December 31, 2023 December 31, 2022 Credit Rating Notional Fair Notional Fair Counterparty S&P Moody's Amount Value Amount Value Bank of America, N.A. A+ Aa1 $ 270.2 $ 15.5 $ 245.5 $ 6.5 Credit Suisse International A+ A3*+ — — — — Societe Generale A A1 — — — — Barclays Bank PLC A+ A1 89.2 3.5 67.5 0.3 Citigroup BBB+ A3 — — — — Total $ 359.4 $ 19.0 $ 313.0 $ 6.8 |
Short-Duration Insurance Cont_2
Short-Duration Insurance Contracts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Reconciliation of Property and Casualty Unpaid Claims and Claim Expenses | The following table is a summary reconciliation of the beginning and ending Property & Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Property & Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of the year gross reserve (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. ($ in millions) Years Ended December 31, 2023 2022 2021 Property & Casualty Gross reserves, beginning of year $ 388.7 $ 362.4 $ 372.2 Less: reinsurance recoverables 100.8 110.3 112.9 Net reserves, beginning of year (1) 287.9 252.1 259.3 Incurred claims and claim expenses: Claims occurring in the current year 557.0 512.3 455.1 Increase (decrease) in estimated reserves for claims occurring in prior years (2) — 22.0 (7.2) Total claims and claim expenses incurred 557.0 534.3 447.9 Claims and claim expense payments for claims occurring during: Current year 353.1 320.0 307.1 Prior years 179.0 178.5 148.0 Total claims and claim expense payments 532.1 498.5 455.1 Net reserves, end of year 312.8 287.9 252.1 Plus: reinsurance recoverables 104.0 100.8 110.3 Gross reserves, end of year $ 416.8 $ 388.7 $ 362.4 (1) Reserves are net of anticipated reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. Also, refer to the paragraphs below for additional information regarding prior years' reserve development recognized in 2023, 2022 and 2021. The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the year ended December 31, 2023 (2022 recast for adoption of LDTI). The table presents reserves on both a gross and net (after reinsurance). The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of the year gross reserve (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. ($ in millions) Year Ended December 31, 2023 2022 Group Benefits Gross reserves, beginning of year $ 121.6 $ 125.4 Less: reinsurance recoverables 27.9 28.5 Net reserves, beginning of year (1) 93.7 96.9 Incurred claims and claim expenses: Claims occurring in the current year 73.6 77.7 Increase (decrease) in estimated reserves for claims occurring in prior years (2) (13.9) (10.9) Total claims and claim expenses incurred 59.7 66.8 Claims and claim expense payments for claims occurring during: Current year 33.8 35.0 Prior years 30.7 35.0 Total claims and claim expense payments 64.5 70.0 Net reserves, end of year 88.9 93.7 Plus: reinsurance recoverables 27.7 27.9 Gross reserves, end of year $ 116.6 $ 121.6 (1) Reserves are net of anticipated reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. Also, refer to the paragraphs below for additional information regarding prior years' reserve development recognized in 2023. |
Schedule of Average Annual Percentage Payout of Incurred Claims by Age, Also Referred to as a History of Claims Duration | Below is the average annual percentage payout of incurred claims by age, also referred to as a history of claims duration: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Homeowners 78.8 % 18.1 % 2.2 % 0.5 % 0.3 % — — — 0.1 % — Auto liability 37.1 % 35.1 % 14.7 % 6.9 % 3.4 % 1.6 % 0.6 % 0.2 % 0.4 % — Auto physical damage 94.7 % 5.3 % — — — — — — — — Below is the average annual percentage payout of incurred claims by age for Group Benefits, also referred to as a history of claims duration: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty health 74.1 % 24.5 % 0.9 % 0.2 % 0.2 % 0.1 % — — — — Group disability 29.3 % 32.4 % 9.7 % 4.0 % 3.4 % 3.1 % 3.0 % 2.5 % 2.1 % 1.8 % The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as unaudited supplementary information. ($ in millions) Specialty Health Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 59.6 $ 56.3 $ 55.9 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ — 337,987 2015 33.3 30.9 30.3 30.3 30.3 30.4 30.4 30.4 30.4 — 183,433 2016 12.5 11.2 11.1 11.1 11.1 11.1 11.1 11.1 — 67,274 2017 10.6 9.7 9.6 9.6 9.6 9.6 9.6 — 63,492 2018 12.9 13.2 13.0 12.7 12.6 12.6 — 95,218 2019 10.6 9.5 9.6 9.5 9.5 — 72,754 2020 6.8 5.8 5.7 5.7 — 43,609 2021 22.8 17.7 16.1 2.4 72,407 2022 22.6 18.0 1.3 120,965 2023 16.0 7.1 79,654 Total $ 185.0 ($ in millions) Specialty Health Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 43.4 $ 54.9 $ 55.4 $ 55.7 $ 55.9 $ 56.0 $ 56.0 $ 56.0 $ 56.0 $ 56.0 2015 24.9 30.4 30.3 30.3 30.3 30.4 30.4 30.4 30.4 2016 5.5 11.0 11.1 11.1 11.1 11.1 11.1 11.1 2017 7.3 9.4 9.6 9.6 9.6 9.6 9.6 2018 8.8 12.1 12.5 12.6 12.6 12.6 2019 7.5 9.3 9.5 9.5 9.5 2020 4.2 5.6 5.7 5.7 2021 2.9 12.9 13.7 2022 10.5 16.7 2023 8.8 Total 174.1 Outstanding prior to 2014 — Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 10.9 ($ in millions) Group Disability Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 16.3 $ 13.3 $ 14.8 $ 14.4 $ 14.3 $ 14.5 $ 14.7 $ 14.3 $ 14.6 $ 14.5 $ — 2,863 2015 25.3 19.2 16.6 14.7 14.6 15.2 15.2 14.7 14.5 — 3,347 2016 28.5 28.6 27.4 26.0 26.3 26.8 28.1 28.1 0.7 3,618 2017 29.9 26.0 22.9 22.4 23.3 24.0 23.1 0.1 3,904 2018 29.8 26.6 23.2 22.7 23.3 23.6 0.3 4,171 2019 34.5 33.5 30.2 29.9 30.2 0.5 4,549 2020 36.7 34.3 34.1 33.2 0.6 4,343 2021 37.8 41.3 41.3 2.0 5,109 2022 39.2 32.0 (0.5) 4,349 2023 40.3 13.2 3,510 Total $ 280.8 ($ in millions) Group Disability Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 3.7 $ 8.5 $ 9.9 $ 10.6 $ 11.1 $ 11.7 $ 12.1 $ 12.4 $ 12.7 $ 12.9 2015 6.8 14.0 16.6 17.2 17.6 18.1 18.6 18.9 19.1 2016 8.3 16.4 19.3 20.3 21.1 21.8 22.4 22.9 2017 8.5 16.1 17.9 18.3 18.9 19.4 19.7 2018 8.4 16.1 18.0 18.9 19.6 20.1 2019 11.8 22.8 24.3 24.7 25.2 2020 12.4 22.7 25.5 26.4 2021 11.8 24.0 26.7 2022 11.7 21.4 2023 12.2 Total 206.6 Outstanding prior to 2014 9.0 Prior years paid 100.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 83.2 Effect of discounting (14.0) Discounted net reserves $ 69.2 |
Schedule of Short-Duration Insurance Contracts, Claims Development | The following tables illustrate the incurred and paid claims development by accident year on a net basis for the lines of homeowners, auto liability and auto physical damage. Conditions and trends that have affected the development of these reserves in the past will not necessarily reoccur in the future. It may not be appropriate to use this cumulative history in the projection of future performance. The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as unaudited supplementary information. ($ in millions) Homeowners Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 111.6 $ 113.5 $ 109.1 $ 106.8 $ 106.6 $ 106.6 $ 106.4 $ 106.4 $ 106.4 $ 106.4 $ — 19,777 2015 111.7 115.1 114.4 114.1 115.1 114.9 114.9 114.9 114.9 — 19,745 2016 115.9 118.6 117.0 117.9 117.9 117.9 118.1 118.1 — 19,662 2017 126.3 129.8 132.7 130.7 130.8 130.8 131.3 0.3 19,741 2018 166.8 157.4 158.9 158.1 157.2 156.0 0.5 20,296 2019 130.4 129.9 132.1 130.9 131.1 0.3 18,114 2020 155.7 151.9 145.4 146.9 0.7 18,906 2021 150.2 150.7 154.3 1.9 18,056 2022 162.2 156.2 8.4 15,036 2023 183.1 38.8 14,655 Total $ 1,398.3 ($ in millions) Homeowners Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 83.3 $ 103.0 $ 105.7 $ 106.1 $ 106.3 $ 106.4 $ 106.4 $ 106.4 $ 106.4 $ 106.4 2015 90.7 109.3 111.9 113.3 114.6 114.9 114.7 114.7 114.9 2016 95.8 113.2 115.1 117.5 117.7 117.8 118.0 118.1 2017 106.8 128.5 129.8 130.0 130.5 130.7 131.2 2018 130.5 152.4 157.0 157.4 157.2 156.2 2019 103.8 126.2 129.1 130.0 130.4 2020 106.8 138.7 144.0 145.6 2021 114.9 146.3 151.0 2022 108.3 144.8 2023 126.3 Total 1,324.9 Outstanding prior to 2013 — Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 73.4 ($ in millions) Automobile Liability Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 155.1 $ 157.2 $ 158.5 $ 159.9 $ 159.8 $ 159.4 $ 159.3 $ 159.4 $ 160.0 $ 160.1 $ — 64,648 2015 165.5 172.6 177.0 178.3 178.7 179.2 178.9 178.8 178.9 — 68,626 2016 180.4 184.4 184.6 186.6 188.1 189.2 189.6 189.5 0.1 70,684 2017 188.0 188.8 188.6 189.1 191.7 192.9 192.5 0.3 68,371 2018 200.3 195.3 192.9 189.8 192.0 192.3 1.1 35,394 2019 181.1 180.1 176.7 181.5 181.2 3.0 61,879 2020 137.0 134.9 136.3 137.3 4.7 46,934 2021 142.2 157.8 156.7 11.5 45,005 2022 165.6 166.1 26.9 46,104 2023 176.4 70.0 42,198 Total $ 1,731.0 ($ in millions) Automobile Liability Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 61.3 $ 117.5 $ 139.5 $ 149.1 $ 155.8 $ 157.6 $ 158.6 $ 158.8 $ 160.0 $ 160.0 2015 70.8 134.5 158.0 170.1 174.5 176.7 177.7 178.3 178.6 2016 73.1 140.9 166.8 177.8 184.5 188.1 189.0 189.4 2017 70.7 139.5 166.6 179.8 185.8 190.8 191.8 2018 77.5 141.5 168.6 180.7 188.0 190.6 2019 69.7 129.1 155.5 170.9 176.2 2020 51.5 94.0 118.2 129.2 2021 52.9 112.5 136.5 2022 55.8 116.7 2023 62.2 Total 1,531.2 Outstanding prior to 2013 1.1 Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 200.9 ($ in millions) Automobile Physical Damage Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, As of December 31, 2023 Total of Incurred- Cumulative Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Actual) 2014 $ 95.6 $ 95.6 $ 95.4 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ — 68,139 2015 99.3 98.0 97.6 97.5 97.6 97.6 97.6 97.6 97.6 — 70,685 2016 112.4 109.5 109.3 109.6 109.6 109.5 109.5 109.6 — 74,209 2017 115.5 111.8 110.5 110.6 110.5 110.6 110.6 — 73,998 2018 109.0 108.9 108.3 108.3 108.2 108.3 — 72,833 2019 111.6 110.5 110.0 110.0 109.9 (0.1) 73,128 2020 87.0 86.9 87.1 87.0 (0.3) 62,044 2021 105.0 105.7 105.1 (0.4) 58,080 2022 125.7 125.5 0.9 59,353 2023 132.4 (6.0) 58,167 Total $ 1,081.2 ($ in millions) Automobile Physical Damage Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Years Ended December 31, Accident Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 88.9 $ 95.4 $ 95.3 $ 95.3 $ 95.3 $ 95.2 $ 95.2 $ 95.2 $ 95.2 $ 95.2 2015 92.1 97.9 97.7 97.6 97.6 97.6 97.6 97.6 97.6 2016 106.5 109.7 109.5 109.6 109.6 109.6 109.5 109.5 2017 105.2 110.8 110.7 110.6 110.6 110.6 110.6 2018 103.6 109.1 108.3 108.3 108.2 108.2 2019 106.2 110.7 110.1 110.1 110.1 2020 84.1 87.6 87.4 87.3 2021 97.3 105.8 105.4 2022 114.6 124.3 2023 122.0 Total 1,070.2 Outstanding prior to 2013 — Prior years paid — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 11.0 |
Schedule of Reconciliation of the Net Incurred and Paid Claims Development Tables to the Liability for Claims and Claim Adjustment Expenses | Reconciliation of Net Incurred and Paid Claims Development Tables for Property & Casualty and Group Benefits to Unpaid Claims and Claim Expense Reserves in the Consolidated Balance Sheet (2022 recast for the adoption of LDTI) ($ in millions) Year Ended December 31, 2023 2022 Property & Casualty and Group Benefits Net reserves Homeowners $ 73.4 $ 61.0 Auto liability 200.9 192.5 Auto physical damage 11.0 10.6 Specialty health 10.9 16.9 Group disability 83.2 69.0 Other than short duration lines 11.0 10.5 Total net reserves for unpaid claims and claim adjustment expenses, net of reinsurance 390.4 360.5 Reinsurance recoverable on unpaid claims Homeowners 2.2 (4.4) Auto liability 96.6 97.6 Specialty health 0.2 0.2 Group disability 25.0 25.6 Other short duration lines 14.9 20.0 Total reinsurance recoverable on unpaid claims 138.9 139.0 Insurance lines other than short duration (1) 41.1 43.5 Unallocated claims adjustment expenses 11.3 21.0 Total other than short duration and unallocated claims adjustment expenses 52.4 64.5 Gross reserves, end of year (1) $ 581.7 $ 564.0 (1) This line includes Life & Retirement and Supplemental reserves included in the Consolidated Balance Sheet. |
Long-Duration Insurance Contr_2
Long-Duration Insurance Contracts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefit, Activity | The following table summarizes the balance of and changes in LFPB on January 1, 2021 due to adoption of ASU 2018-12. The impact of shifts between deferred profit liabilities (DPL) and LFPB for limited-payment products are presented as offsetting line items in the effect of net premiums exceeding gross premiums and the effect of decrease/increase of DPL. ($ in millions) Whole Life Term Life Experience Life Limited Pay Whole Life Supplemental Health (1) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 0 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables, end of year December 31, 2020 (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 (1) As of January 1, 2021, the net LFPB for Supplemental Health was $163.5 million for cancer, $31.2 million for accident, $32.0 million for disability and $188.8 million for other supplemental health policies. The following tables summarize balances and changes in LFPB for traditional and limited-payment contracts. The balances of and changes in LFPB as of and for the year ended December 31, 2023 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present value of expected net premiums: Balance at January 1, 2023 $ 215.1 $ 234.7 $ 68.3 $ 29.7 $ 167.4 $ — January 1, 2023 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of: — — — — — — Change in cash flow assumptions — (16.8) 3.7 (0.2) 6.5 — Actual variances from expected experience 3.8 (2.7) 0.7 1.0 (1.6) — Adjusted balance at January 1, 2023 249.7 245.9 69.9 33.2 210.0 — Issuances (3) 10.8 25.2 — 4.3 19.4 5.6 Interest accruals (4) 7.2 10.3 3.7 1.2 6.0 — Net premiums collected (5) (20.6) (24.8) (6.6) (4.8) (22.0) (5.6) December 31, 2023 balance at original discount rate 247.1 256.6 67.0 33.9 213.4 — Effect of changes in discount rate assumptions (23.9) (16.6) 4.7 (1.7) (31.4) — Balance at December 31, 2023 223.2 240.0 71.7 32.2 182.0 — Present value of expected future policy benefits: Balance at January 1, 2023 493.6 347.0 867.5 79.4 431.7 103.3 January 1, 2023 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of: Changes in cash flow assumptions (0.6) (16.7) 5.0 (0.2) 8.9 — Actual variances from expected experience 4.0 1.3 1.1 1.0 (2.4) (0.8) Adjusted balance at January 1, 2023 585.3 385.6 811.3 99.4 543.6 112.6 Issuances 10.7 25.8 — 4.3 19.4 6.3 Interest accruals 19.0 15.2 47.4 3.9 14.4 4.4 Benefit payments (6) (22.9) (21.2) (61.2) (2.0) (59.5) (11.9) December 31, 2023 balance at original discount rate 592.1 405.4 797.5 105.6 517.9 111.4 Effect of changes in discount rate assumptions (70.1) (35.3) 85.5 (16.0) (90.3) (7.2) Balance at December 31, 2023 522.0 370.1 883.0 89.6 427.6 104.2 Net liability for future policy benefits 298.8 130.2 811.3 57.4 245.6 104.2 Less: Reinsurance recoverable (64.3) (19.1) (1.0) (1.2) (4.0) (3.6) Net liability for future policy benefits, after reinsurance recoverable 234.5 111.1 810.3 56.2 241.6 100.6 Impact of flooring on net liability for future policy benefits — — — — — — Net liability for future policy benefits at December 31, 2023 $ 234.5 $ 111.1 $ 810.3 $ 56.2 $ 241.6 $ 100.6 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2023, the net LFPB for Supplemental Health was $92.7 million for cancer, $21.4 million for accident, $23.5 million for disability and $104.0 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Present Value of Expected Net Premiums Balance at January 1, 2022 (7) $ 260.7 $ 264.4 $ 74.6 $ 29.7 $ 226.7 $ — January 1, 2022 balance at original discount rate (7) 239.3 235.4 55.9 27.2 223.1 — Effect of: Change in cash flow assumptions 5.2 18.7 9.1 2.0 12.2 — Actual variances from expected experience 7.2 (4.2) 3.0 1.6 (25.3) — Adjusted balance at January 1, 2022 251.7 249.9 68.0 30.8 210.0 — Issuances (3) 12.5 28.0 — 6.3 12.0 5.3 Interest accruals (4) 6.7 9.0 3.3 1.1 5.9 — Net premiums collected (5) (25.0) (21.5) (5.8) (5.8) (22.8) (5.3) December 31, 2022 balance at original discount rate 245.9 265.4 65.5 32.4 205.1 — Effect of changes in discount rate assumptions (30.8) (30.7) 2.8 (2.7) (37.7) — Balance at December 31, 2022 215.1 234.7 68.3 29.7 167.4 — Present Value of Expected Future Policy Benefits Balance at January 1, 2022 (7) 660.4 411.5 1,172.7 102.9 590.6 129.1 January 1, 2022 balance at original discount rate (7) 566.1 360.0 802.6 86.6 584.2 115.7 Effect of: Changes in cash flow assumptions 5.2 21.5 11.0 2.0 13.8 — Actual variances from expected experience 7.7 (4.7) 3.6 1.4 (30.0) 0.4 Adjusted balance at January 1, 2022 579.0 376.8 817.2 90.0 568.0 116.1 Issuances 12.4 28.3 — 6.4 12.0 5.3 Interest accruals 18.0 14.4 47.4 3.4 15.0 4.3 Benefit payments (6) (27.5) (18.5) (59.4) (1.2) (57.9) (12.3) December 31, 2022 balance at original discount rate 581.9 401.0 805.2 98.6 537.1 113.4 Effect of changes in discount rate assumptions (88.3) (54.0) 62.3 (19.2) (105.4) (10.1) Balance at December 31, 2022 493.6 347.0 867.5 79.4 431.7 103.3 Net liability for future policy benefits 278.4 112.2 799.3 49.6 264.4 103.3 Less: Reinsurance recoverable (63.1) (15.3) (0.8) — (3.4) (3.2) Net liability for future policy benefits, after reinsurance recoverable 215.3 96.9 798.5 49.6 261.0 100.1 Impact of flooring on net liability for future policy benefits 1.1 0.2 — — — — Net liability for future policy benefits at December 31, 2022 $ 216.4 $ 97.1 $ 798.5 $ 49.6 $ 261.0 $ 100.1 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. (7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022. The balances of and changes in LFPB (including a summary of the balance and changes in the LFPB on January 1, 2021 due to adoption of ASU 2018-12) as of and for the year ended December 31, 2021 were as follows: ($ in millions) Whole Life Term Life Experience Life (1) Limited-Pay Whole Life Supplemental Health (2) SPIA (life contingent) Balance, end of year December 31, 2020 $ 218.7 $ 93.2 $ 758.3 $ 51.3 $ 392.5 $ 115.9 Change in discount rate assumptions 111.5 27.3 433.0 18.2 23.0 20.6 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 0.4 — — — — — Change in cash flow assumptions, effect of decrease of the DPL — — — — — — Adjustment for removal of related balances in AOCI — — — — — — Adjusted balance, beginning of year January 1, 2021 330.6 120.5 1,191.3 69.5 415.5 136.5 Less: Reinsurance recoverables (0.1) (5.4) (1.3) (0.1) — — Less: Change in discount rate assumptions (0.2) (0.9) (0.7) (0.1) — — Adjusted balance, beginning of year January 1, 2021, net of reinsurance $ 330.3 $ 114.2 $ 1,189.3 $ 69.3 $ 415.5 $ 136.5 Present Value of Expected Net Premiums Balance at January 1, 2021 $ 176.5 $ 244.1 $ 78.0 $ 25.4 $ 233.0 $ — January 1, 2021 balance at original discount rate 143.5 200.8 55.2 22.0 218.2 — Effect of: Change in cash flow assumptions 2.4 (4.5) (3.3) — (1.8) — Actual variances from expected experience 8.8 6.9 6.3 1.0 6.3 — Adjusted balance at January 1, 2021 154.7 203.2 58.2 23.0 222.7 — Issuances (3) 13.3 29.8 — 10.2 13.0 3.7 Interest accruals (4) 6.2 7.9 3.2 0.8 5.9 — Net premiums collected (5) (16.6) (19.8) (5.6) (6.8) (24.1) (3.7) December 31, 2021 balance at original discount rate 157.6 221.1 55.8 27.2 217.5 — Effect of changes in discount rate assumptions 25.4 32.0 18.8 2.5 4.0 — Balance at December 31, 2021 183.0 253.1 74.6 29.7 221.5 — Present Value of Expected Future Policy Benefits Balance at January 1, 2021 507.1 364.7 1,269.3 95.0 626.9 136.5 January 1, 2021 balance at original discount rate 362.5 294.0 813.5 73.4 589.1 115.9 Effect of: Changes in cash flow assumptions 2.8 (4.8) (3.6) — (3.0) — Actual variances from expected experience 8.7 7.2 6.6 1.1 6.2 (0.4) Adjusted balance at January 1, 2021 374.0 296.4 816.5 74.5 592.3 115.5 Issuances 13.3 29.8 — 10.2 13.0 3.7 Interest accruals 17.1 12.0 47.9 2.9 15.7 4.5 Benefit payments (6) (18.1) (18.7) (61.9) (1.0) (48.4) (12.1) December 31, 2021 balance at original discount rate 386.3 319.5 802.5 86.6 572.6 111.6 Effect of changes in discount rate assumptions 114.4 51.1 370.2 16.3 8.0 13.1 Balance at December 31, 2021 500.7 370.6 1,172.7 102.9 580.6 124.7 Net liability for future policy benefits 317.7 117.6 1,098.1 73.2 359.1 124.7 Less: Reinsurance recoverable (0.5) (5.5) (1.1) (0.2) — — Net liability for future policy benefits, after reinsurance recoverable $ 317.2 $ 112.1 $ 1,097.0 $ 73.0 $ 359.1 $ 124.7 (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2021, the net LFPB for Supplemental Health was $140.8 million for cancer, $28.7 million for accident, $29.3 million for disability and $160.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) The following tables summarize the amount of revenue from gross premiums or assessment and interest expense related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): ($ in millions) Gross premiums or assessments Year Ended December 31, 2023 2022 Whole life $ 28.1 $ 25.9 Term life 45.2 42.4 Experience life 32.1 33.5 Limited-pay whole life 7.2 8.1 Supplemental health 120.3 121.2 SPIA (life contingent) 6.1 5.7 Total $ 239.0 $ 236.8 ($ in millions) Interest expense Year Ended December 31, 2023 2022 Whole life $ 11.8 $ 11.3 Term life 4.8 4.4 Experience life 43.7 44.2 Limited-pay whole life 2.6 2.4 Supplemental health 8.4 9.1 SPIA (life contingent) 4.4 4.4 Total $ 75.7 $ 75.8 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts: ($ in millions) As of December 31, 2023 As of Undiscounted Discounted Undiscounted Discounted Whole life Expected future gross premiums $ 478.8 $ 325.0 $ 469.0 $ 322.5 Expected future benefits and expenses 1,152.8 592.1 1,121.4 580.4 Term life Expected future gross premiums 689.0 449.4 739.3 464.2 Expected future benefits and expenses 682.7 405.4 678.0 401.0 Experience Life Expected future gross premiums 530.0 296.1 569.6 315.5 Expected future benefits and expenses 1,703.1 797.5 1,755.4 805.2 Limited-pay whole life Expected future gross premiums 64.7 49.1 60.8 46.5 Expected future benefits and expenses 244.9 105.6 226.8 98.6 Supplemental health Expected future gross premiums 1,624.1 1,192.5 1,640.5 1,214.9 Expected future benefits and expenses 719.4 517.9 730.7 537.1 SPIA (life contingent) Expected future gross premiums — — — — Expected future benefits and expenses 156.1 111.4 157.7 113.4 The following table provides the weighted-average durations of LFPB, in years: As of December 31, 2023 2022 Whole life 18.0 18.3 Term life 16.7 16.8 Experience life 10.3 10.6 Limited-pay whole life 22.1 22.9 Supplemental health 10.7 10.1 SPIA (life contingent) 7.6 7.7 The following table provides ranges of the weighted-average interest rates for LFPB: As of December 31, 2023 2022 Whole life Interest accretion rate 1.7% - 4.9% 1.7% - 4.9% Current discount rate 4.4% - 5.0% 4.7% - 5.3% Term life Interest accretion rate 4.2% - 4.3% 4.1% -4.3% Current discount rate 4.9% - 5.0% 5.3% - 5.3% Experience life Interest accretion rate 6.1 % 6.1 % Current discount rate 5.0 % 5.3 % Limited-pay whole life Interest accretion rate 4.0 % 3.9 % Current discount rate 5.1 % 5.3 % Supplemental health Interest accretion rate 1.7% - 2.7% 1.7% - 2.7% Current discount rate 5.0% - 5.2% 5.3% - 5.5% SPIA (life contingent) Interest accretion rate 1.7% - 4.1% 1.7% - 4.0% Current discount rate 4.9% - 4.9% 5.2% - 5.2% |
Schedule of Liability for Future Policy Benefits, by Product Segment | The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets: ($ in millions) December 31, 2023 December 31, 2022 Whole life $ 298.8 $ 279.5 Term life 130.2 112.4 Experience life 811.3 799.3 Limited-pay whole life 57.4 49.6 Supplemental health 245.6 264.4 SPIA (life contingent) 104.2 103.3 Limited-pay whole life DPL 4.1 3.2 SPIA (life contingent) DPL 1.3 0.8 Reconciling items (1) 108.9 105.5 Total $ 1,761.8 $ 1,718.0 (1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves. |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions, 2022 information recast for the adoption of LDTI): ($ in millions) Total Internal External December 31, 2023 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ — $ — $ — Municipal bonds 74.0 — 74.0 Corporate bonds 342.5 180.4 162.1 Other asset-backed securities 97.5 — 97.5 Total fixed maturity securities 514.0 180.4 333.6 Equity securities 4.5 — 4.5 Totals $ 518.5 $ 180.4 $ 338.1 Financial Liabilities (1) $ 82.4 $ 82.4 $ — December 31, 2022 Financial Assets Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 2.6 $ — $ 2.6 Municipal bonds 54.4 — 54.4 Corporate bonds 261.3 9.5 251.8 Other asset-backed securities 105.0 — 105.0 Total fixed maturity securities 423.3 9.5 413.8 Equity securities 2.0 — 2.0 Totals $ 425.3 $ 9.5 $ 415.8 Financial Liabilities (1) $ 91.3 $ 91.3 $ — (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3. ($ in millions) Fair Value at December 31, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 180.4 discounted cash flow yield 6.7% - 17.0% Decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 86.3 discounted cash flow lapse rate 5.9% Decrease mortality multiplier (2) 69.4% Decrease option budget 0.9% - 3.8% Increase non-performance adjustment (3) 5.0% Decrease Net MRBs $ (3.9) discounted cash flow lapse rate 5.9% Decrease mortality multiplier (2) 67.8% Increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. ($ in millions) Fair Value at December 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) and Single Point Best Estimate (1) Impact of Increase in Input on Fair Value Financial Assets Corporate bonds $ 9.5 discounted cash flow yield 6.8% Decrease Financial Liabilities Derivatives embedded in fixed indexed annuity products $ 91.0 discounted cash flow lapse rate 5.4% Decrease mortality multiplier (2) 67.8% Decrease option budget 0.9% - 3.4% Increase non-performance adjustment (3) 5.0% Decrease Net MRBs $ 0.3 discounted cash flow lapse rate 5.3% Decrease mortality multiplier (2) 67.8% Increase (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: December 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.7% 1.6 % 0.2 % N.M. Expected experience 0.7 % 0.1% - 2.3% 1.6 % 0.3 % N.M. Lapses Actual experience 3.4 % 5.3% - 13.0% 3.2 % 4.2 % N.M. Expected experience 4.8 % 5.8% - 36.8% 3.1 % 5.4 % N.M. December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life SPIA (life contingent) Mortality Actual experience 0.7 % 0.1% - 0.3% 1.6 % 0.3 % N.M. Expected experience 0.7 % 0.1% - 1.0% 1.4 % 0.2 % N.M. Lapses Actual experience 3.2 % 5.7% - 58.1% 3.3 % 3.8 % N.M. Expected experience 5.9 % 6.6% - 9.8% 3.2 % 7.6 % N.M. |
Schedule of Policyholder Account Balance | The following tables summarize balances of and changes in policyholders' account balances: ($ in millions) Year Ended December 31, 2023 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2023 $ 47.6 $ 64.3 $ 4,591.1 $ 510.3 $ 34.4 Premiums received (1) $ 13.6 $ (0.8) $ 236.3 $ 20.1 $ 3.4 Surrenders and withdrawals (2) (1.1) (3.7) (391.8) (67.0) (0.4) Benefit payments (3) — (1.7) (75.1) (3.1) (5.9) Net transfers from (to) separate account (0.6) — 23.7 (8.2) — Interest credited (4) 1.5 3.1 162.0 5.3 1.0 Other (3.2) — 9.8 (8.4) 0.1 Balance at December 31, 2023 $ 57.8 $ 61.2 $ 4,556.0 $ 449.0 $ 32.6 Weighted-average crediting rate 2.8 % 5.0 % 3.6 % 1.1 % 3.1 % Net amount at risk (5) $ — $ — $ 35.9 $ — $ — Cash surrender value $ 40.5 $ 60.5 $ 4,507.5 $ 439.9 $ 32.3 ($ in millions) Year Ended December 31, 2022 Indexed Universal Life Experience Life Fixed Account Annuities Fixed Indexed Account Annuities SPIA (non-life contingent) Balance at January 1, 2022 $ 39.1 $ 66.2 $ 4,532.7 $ 522.6 $ 37.7 Premiums received (1) $ 11.8 $ (0.3) $ 209.4 $ 32.4 $ 2.4 Surrenders and withdrawals (2) (1.0) (3.0) (281.5) (40.4) (0.5) Benefit payments (3) — (1.8) (65.9) (4.1) (6.3) Net transfers from (to) separate account — — 40.5 (2.5) — Interest credited (4) 0.8 3.2 156.0 3.3 1.1 Other (3.1) — (0.1) (1.0) — Balance at December 31, 2022 $ 47.6 $ 64.3 $ 4,591.1 $ 510.3 $ 34.4 Weighted-average crediting rate 1.9 % 5.0 % 3.5 % 0.6 % 3.0 % Net amount at risk (5) $ — $ — $ 83.9 $ — $ — Cash surrender value $ 30.9 $ 63.6 $ 4,535.2 $ 496.3 $ 34.1 (1) Premiums received represents premiums collected from policyholder during the period of in force business (2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (4) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets: ($ in millions) December 31, 2023 December 31, 2022 Indexed universal life $ 57.8 $ 47.6 Experience Life 61.2 64.3 Fixed account annuities 4,556.0 4,591.1 Fixed indexed account annuities 449.0 510.3 SPIA (non-life contingent) 32.6 34.4 Reconciling items (1) 30.4 12.9 Total $ 5,187.0 $ 5,260.6 (1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs. |
Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the gross account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: ($ in millions) December 31, 2023 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 36.7 $ 159.8 $ 489.4 $ 200.2 $ 886.1 Equal to 2% but less than 3% 162.9 77.9 65.8 76.1 382.7 Equal to 3% but less than 4% 571.3 36.9 0.7 — 609.0 Equal to 4% but less than 5% 2,670.5 — — — 2,670.5 5% or higher 86.9 — — — 86.9 Total $ 3,528.3 $ 274.6 $ 555.9 $ 276.3 $ 4,635.2 ($ in millions) December 31, 2022 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (1) Guaranteed minimum crediting rates: Less than 2% $ 262.5 $ 370.6 $ 214.4 $ 96.1 $ 943.6 Equal to 2% but less than 3% 256.1 19.8 4.7 — 280.6 Equal to 3% but less than 4% 667.4 0.4 0.4 — 668.2 Equal to 4% but less than 5% 2,706.1 — — — 2,706.1 5% or higher 91.7 — — — 91.7 Total $ 3,983.8 $ 390.8 $ 219.5 $ 96.1 $ 4,690.2 (1) Excludes products not containing a fixed guaranteed minimum crediting rate. |
Schedule of Separate Account, Liability | The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets (1) : ($ in millions) Retirement Services Variable Account Annuities December 31, 2023 December 31, 2022 Balance, beginning of year $ 2,792.3 $ 3,441.0 Deposits 234.2 240.3 Withdrawals (213.4) (186.8) Net transfers (15.5) (38.1) Fees and charges (37.6) (36.8) Market appreciation (depreciation) 541.5 (619.7) Other (7.4) (7.6) Balance, end of period $ 3,294.1 $ 2,792.3 (1) The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. |
Schedule of Market Risk Benefit, Activity | The following table summarizes the balance of and changes in the net liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Balance, end of year December 31, 2020 $ 0.1 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 6.8 Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance 1.7 Total adjustment for the difference between carrying amount and fair value 8.5 Balance, beginning of year January 1, 2021 8.6 Less: Reinsurance recoverable — Balance, beginning of year January 1, 2021, net of reinsurance $ 8.6 The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the year ended December 31, 2023 and 2022, respectively: ($ in millions) Year Ended December 31, 2023 2022 Balance, beginning of period $ 0.3 $ 4.8 Balance, beginning of period, before effects of changes in the instrument-specific credit risk — 2.0 Changes in market risk benefits (1) (4.5) (2.0) Balance, end of period (2) $ (4.5) $ — Effect of changes in the instrument-specific credit risk 0.6 0.3 Balance, end of period $ (3.9) $ 0.3 Net amount at risk (3) $ 20.5 $ 55.3 Weighted-average attained age of contract holders 62 61 (1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets. ($ in millions) As of December 31, 2023 As of December 31, 2022 (Asset) Liability Net (Asset) Liability Net Deferred variable annuities $ (6.7) $ 2.8 $ (3.9) $ (4.4) $ 4.7 $ 0.3 |
Schedule of Deferred Policy Acquisition Costs | The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12: ($ in millions) Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 DAC and Deferred Sales Inducements The following tables roll-forward DAC for the periods indicated: ($ in millions) Year Ended December 31, 2023 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of period $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 Capitalizations 2.7 5.8 0.3 1.1 2.5 2.9 15.0 Amortization expense (1.2) (3.1) (0.4) (0.3) (1.0) (0.6) (14.7) Experience adjustment (0.1) (0.1) — (0.1) (0.1) (0.3) (7.4) Balance, end of period $ 22.3 $ 32.6 $ 5.7 $ 7.4 $ 16.8 $ 8.2 $ 214.0 ($ in millions) Year Ended December 31, 2022 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, beginning of year $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 Capitalizations 3.0 5.0 0.2 1.4 2.5 1.8 15.5 Amortization expense (1.2) (2.5) (0.4) (0.3) (0.8) (0.5) (15.8) Experience adjustment — — — — — — (1.9) Balance, end of year $ 20.9 $ 30.0 $ 5.8 $ 6.7 $ 15.4 $ 6.2 $ 221.1 ($ in millions) Year Ended December 31, 2021 Whole Life Term Life Experience Life Limited-Pay Whole Life Indexed Universal Life Supplemental Health Total Annuities Balance, end of year December 31, 2020 $ 17.8 $ 25.6 $ 2.6 $ 4.4 $ 11.3 $ 4.3 $ 137.7 Adjustment for removal of related balances in AOCI — — 3.6 — 1.6 — 85.4 Adjusted balance, beginning of year January 1, 2021 $ 17.8 $ 25.6 $ 6.2 $ 4.4 $ 12.9 $ 4.3 $ 223.1 Capitalizations 2.4 4.2 0.2 1.5 1.7 1.1 17.3 Amortization expense (1.1) (2.3) (0.4) (0.3) (0.8) (0.5) (16.0) Experience adjustment — — — — (0.1) — (1.1) Balance, end of year December 31, 2021 $ 19.1 $ 27.5 $ 6.0 $ 5.6 $ 13.7 $ 4.9 $ 223.3 |
Schedule of Deferred Sale Inducement Cost | The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: ($ in millions) December 31, 2023 December 31, 2022 Whole life $ 22.3 $ 20.9 Term life 32.6 30.0 Experience life 5.7 5.8 Limited pay whole life 7.4 6.7 Indexed universal life 16.8 15.4 Supplemental health 8.2 6.2 Total annuities 214.0 221.1 Reconciling item (1) 29.3 24.5 Total $ 336.3 $ 330.6 (1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. The following table rolls-forward the deferred sales inducements balance as of and for the years ended December 31, 2023 and 2022: ($ in millions) Year Ended December 31, 2023 Year Ended December 31, 2022 Balance, beginning of period $ 15.9 $ 17.3 Capitalizations — — Amortization expense (1.0) (1.2) Experience adjustment (0.8) (0.2) Balance, end of period $ 14.1 $ 15.9 |
Reinsurance and Catastrophes (T
Reinsurance and Catastrophes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Summary of Reinsurance Recoverable on Unpaid Insurance Reserves | The total amounts of reinsurance recoverable on unpaid insurance reserves classified as assets and included in the amounts being reported as Reinsurance balances receivable in the Consolidated Balance Sheets were as follows: ($ in millions) December 31, 2023 2022 Reinsurance recoverables on reserves and unpaid claims Property & Casualty Reinsurance companies $ 7.4 $ 3.1 State insurance facilities 96.6 97.7 Group benefits 306.2 352.4 Life and health 14.0 9.3 Total $ 424.2 $ 462.5 |
Summary of Effects of Reinsurance on Premiums and Benefits | The effects of reinsurance on premiums written and contract deposits; premiums and contract charges earned; and benefits, claims and settlement expenses were as follows (2022 recast for the adoption of LDTI): ($ in millions) Gross Ceded to Other Companies (1) Assumed Net Year Ended December 31, 2023 Net premiums written and contract deposits (2) $ 1,583.6 $ 67.9 $ 36.9 $ 1,552.6 Net premiums and contract charges earned 1,097.7 76.3 35.7 $ 1,057.1 Benefits, claims and settlement expenses 803.6 45.7 11.2 $ 769.1 Year Ended December 31, 2022 Net premiums written and contract deposits (2) 1,499.0 62.9 53.0 $ 1,489.1 Net premiums and contract charges earned 1,046.7 72.0 53.0 $ 1,027.7 Benefits, claims and settlement expenses 772.5 43.5 18.0 $ 747.0 Year Ended December 31, 2021 Net premiums written and contract deposits (2) 1,373.6 23.1 9.4 $ 1,359.9 Net premiums and contract charges earned 912.4 33.3 9.7 $ 888.8 Benefits, claims and settlement expenses 592.3 7.8 6.2 $ 590.7 (1) Excludes the annuity reinsurance agreement accounted for using the deposit method that is discussed in Note 8. (2) This measure is not based on accounting principles generally accepted in the United States of America (non-GAAP). An explanation of this non-GAAP measure is contained in the Glossary of Selected Terms included as an exhibit in the Company's reports filed with the SEC. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reporting segment for the year ended December 31, 2023 were as follows: ($ in millions) Property & Casualty Life & Retirement Supplemental & Group Benefits Total Balance as of January 1, 2021 Goodwill $ 9.5 $ 48.0 $ 19.6 $ 77.1 Accumulated impairment losses — (33.6) — (33.6) Total goodwill, net 9.5 14.4 19.6 43.5 Acquisitions — — — — Impairments — — — — Balance as of December 31, 2021 Goodwill 9.5 48.0 19.6 77.1 Accumulated impairment losses — (33.6) — (33.6) Total goodwill, net 9.5 14.4 19.6 43.5 Acquisitions — — 12.8 12.8 Impairments — (2.0) — (2.0) Balance as of December 31, 2022 Goodwill 9.5 48.0 32.4 89.9 Accumulated impairment losses — (35.6) — (35.6) Total goodwill, net 9.5 12.4 32.4 54.3 Acquisitions — — — — Impairments — — — — Balance as of December 31, 2023 Goodwill 9.5 48.0 32.4 89.9 Accumulated impairment losses — (35.6) — (35.6) Total goodwill, net $ 9.5 $ 12.4 $ 32.4 $ 54.3 |
Summary of Finite-Lived Intangible Assets | As of December 31, 2023 the outstanding amounts of definite-lived intangible assets subject to amortization were as follows: ($ in millions) Weighted Average Useful Life (in Years) At inception: Value of business acquired 28 $ 100.1 Value of distribution acquired 17 54.0 Value of agency relationships 14 17.0 Value of customer relationships 10 59.9 Total 20 231.0 Accumulated amortization and impairments: Value of business acquired (35.3) Value of distribution acquired (17.5) Value of agency relationships (9.8) Value of customer relationships (11.5) Total (74.1) Net intangible assets subject to amortization: $ 156.9 |
Future Amortization Expense | Estimated future amortization of the Company's definite-lived intangible assets were as follows: ($ in millions) Year Ending December 31, 2024 $ 14.5 2025 14.3 2026 14.2 2027 14.1 2028 14.1 Thereafter 85.7 Total $ 156.9 |
Summary of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets (not subject to amortization) as of December 31, 2023 were as follows: ($ in millions) Trade Names State Licenses Total Balance as of January 1, 2021 $ 7.9 $ 2.9 $ 10.8 Impairments — — — Acquisitions — — — Balance as of December 31, 2021 7.9 2.9 10.8 Impairments (0.3) — (0.3) Acquisitions — 2.9 2.9 Balance as of December 31, 2022 7.6 5.8 13.4 Impairments — — — Acquisitions — — — Balance as of December 31, 2023 $ 7.6 $ 5.8 $ 13.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Indebtedness Outstanding | Indebtedness and scheduled maturities consisted of the following: ($ in millions) Interest Final December 31, 2023 2022 Short-term debt Revolving Credit Facility Variable 2026 $ — $ 249.0 Long-term debt (1) 7.25% 2023 Senior Notes, Aggregate principal amount of $300.0 less unaccrued discount of $0.5 and $0.0 and unamortized debt issuance costs of $2.8 and $0.0 7.25% 2028 296.7 — 4.50% 2015 Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.2 and $0.2 and unamortized debt issuance costs of $0.5 and $0.8 4.50% 2025 249.3 249.0 Total $ 546.0 $ 498.0 (1) The Company designates debt obligations as "long-term" based on maturity date at issuance. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Assets and Liabilities | The income tax assets and liabilities included in Other assets and Other liabilities, respectively, in the Consolidated Balance Sheets were as follows (2022 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 Income tax (asset) liability Current $ (25.9) $ (18.8) Deferred 33.4 8.8 |
Summary of Deferred Tax Assets and Liabilities | The "temporary differences" that gave rise to the deferred tax balances were as follows (2022 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 Deferred tax assets Other comprehensive income - net unrealized losses on securities $ 82.1 $ 105.8 Unearned premium reserve reduction 13.3 10.1 Compensation accruals 9.3 8.4 Impaired securities 2.0 2.0 Other comprehensive income - net funded status of benefit plans 2.0 2.3 Discounting of unpaid claims and claim expense tax reserves 2.7 2.8 Capital loss carryforward 0.8 — Net operating loss carryforward 9.3 3.6 Intangibles 1.4 — Postretirement benefits other than pensions 0.2 0.2 Total gross deferred tax assets 123.1 135.2 Deferred tax liabilities Deferred policy acquisition costs 45.9 48.5 Life insurance future policy benefit reserve 46.4 42.4 Life insurance future policy benefit reserve (transitional rule) 4.3 6.4 Discounting of unpaid claims and claim expense tax reserves (transitional rule) 0.3 0.5 Investment related adjustments 44.8 29.9 Other comprehensive income - net reserve remeasurements 5.8 15.7 Other, net 9.0 0.6 Total gross deferred tax liabilities 156.5 144.0 Net deferred tax liability $ 33.4 $ 8.8 |
Summary of Income Taxes Expenses | The components of the provision for income tax expense (benefit) were as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) Years Ended December 31, 2023 2022 2021 Current $ 6.5 $ (0.7) $ 27.7 Deferred 1.8 (2.6) 12.0 Total income tax expense (benefit) $ 8.3 $ (3.3) $ 39.7 |
Summary of Income Taxes Expenses Reconciliation | Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 21% for 2023, 2022 and 2021 to income before income taxes as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) Years Ended December 31, 2023 2022 2021 Expected federal tax on income $ 11.2 $ 3.5 $ 44.1 Add (deduct) tax effects of: Tax-exempt interest (2.7) (3.3) (3.9) Dividend received deduction (1.3) (3.2) (2.2) Employee share-based compensation 0.1 (0.5) (1.3) Contingent consideration — (0.3) — Compensation deduction limitation 0.8 0.7 1.5 Research and development reserve (0.2) (0.4) (0.2) Prior year adjustments 0.3 0.1 0.1 Other, net 0.1 0.1 1.6 Income tax expense (benefit) provided on income $ 8.3 $ (3.3) $ 39.7 |
Shareholders' Equity and Shar_2
Shareholders' Equity and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Summary of Stock Units and Stock Options Outstanding under the Comprehensive Plan | As further described in the paragraphs below, CSUs, stock options and RSUs under the Comprehensive Plan were as follows: December 31, 2023 2022 2021 CSUs related to deferred compensation for Directors 14,458 15,372 26,313 CSUs related to deferred compensation for employees 12,972 12,437 16,571 Stock options 1,402,514 1,194,352 1,032,128 RSUs related to incentive compensation 925,230 816,759 834,981 Total 2,355,174 2,038,920 1,909,993 |
Summary of Changes in Outstanding Options | Changes in outstanding options were as follows: Weighted Average Range of Options Outstanding Vested and December 31, 2022 $39.41 $28.88-$42.95 1,194,352 766,444 Granted $35.62 $32.13-$35.98 209,028 — Vested $40.56 $38.99-$41.83 — 176,954 Exercised $28.88 $28.88-$28.88 (866) (866) Forfeited $— $— — — Expired $— $— — — December 31, 2023 $38.85 $28.88-$42.95 1,402,514 942,532 Option information segregated by ranges of exercise prices were as follows: December 31, 2023 Total Outstanding Options Vested and Exercisable Options Range of Options Weighted Weighted Options Weighted Weighted 28.88-32.35 213,890 $30.94 2.31 194,326 $30.82 1.60 35.98-38.99 388,544 $37.51 7.10 199,080 $38.96 5.12 40.10-42.95 800,080 $41.62 5.91 549,126 $41.87 5.19 Total 1,402,514 $38.85 5.69 942,532 $38.98 4.44 |
Summary of Changes in Outstanding Restricted Common Stock Units | Changes in outstanding RSUs were as follows: Total Outstanding Units Vested Units Units Weighted Average Units Weighted Average December 31, 2022 816,759 $36.58 416,082 $28.93 Granted (1) 286,648 $35.78 — — Adjustment for performance achievement 6,174 $44.49 — — Vested — — 176,082 $41.93 Forfeited (5,323) $42.25 — — Distributed (2) (179,028) $41.65 (179,028) $41.65 December 31, 2023 925,230 $35.43 413,136 $29.04 (1) Includes dividends reinvested into additional RSUs. (2) Includes distributed units which were utilized to satisfy withholding taxes due on the distribution. |
Statutory Information and Div_2
Statutory Information and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Statutory Surplus and Subsidiary Dividend Restrictions | The following table includes selected information for HMEC's insurance subsidiaries: ($ in millions) Year Ended December 31, 2023 2022 2021 Consolidated net income, statutory basis $ 24.7 $ 77.0 $ 114.8 Consolidated capital and surplus, statutory basis (1) $ 1,043.6 $ 1,024.5 $ 955.1 (1) Subject to regulatory restrictions. |
Comprehensive Income (Loss) a_2
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Components of Comprehensive Income | The components of comprehensive income (loss) were as follows (in millions, 2022 and 2021 recast for the adoption of LDTI): ($ in millions) Year Ended December 31, 2023 2022 2021 Net income $ 45.0 $ 19.8 $ 170.4 Other comprehensive income (loss): Effect of adopting ASU 2018-12 — — (426.6) Change in net unrealized investment gains (losses) on fixed maturity securities: Net unrealized investment gains (losses) on securities arising during the period 133.9 (1,042.6) (122.8) Less: reclassification adjustment for net investment gains (losses) included in income before income tax (20.3) (29.1) (7.7) Total, before tax 154.2 (1,013.5) (115.1) Income tax expense (benefit) 32.9 (216.8) (24.8) Total, net of tax 121.3 (796.7) (90.3) Change in net reserve remeasurements attributable to discount rates: Total, before tax (47.2) 567.6 141.0 Income tax expense (benefit) (10.1) 121.7 30.2 Total, net of tax (37.1) 445.9 110.8 Change in net funded status of benefit plans: Total, before tax 1.5 1.8 1.2 Income tax expense (benefit) 0.3 0.4 0.2 Total, net of tax 1.2 1.4 1.0 Total comprehensive income (loss) $ 130.4 $ (329.6) $ (234.7) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table reconciles the components of AOCI for the periods indicated (2022 and 2021 recast for the adoption of LDTI) ($ in millions) Net Unrealized Investment Gains (Losses) on Securities (1)(2) Net Reserve Remeasurements Attributable to Discount Rates (1) Net Funded Status of Benefit Plans (1) Total (1) Beginning balance, January 1, 2023 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Other comprehensive income (loss) before reclassifications 105.3 (37.1) 1.2 69.4 Amounts reclassified from AOCI 16.0 — — 16.0 Net current period other comprehensive income (loss) 121.3 (37.1) 1.2 85.4 Ending balance, December 31, 2023 $ (328.3) $ 21.9 $ (7.6) $ (314.0) Beginning balance, January 1, 2022 $ 347.1 $ (386.9) $ (10.2) $ (50.0) Other comprehensive income (loss) before reclassifications (819.7) 445.9 1.4 (372.4) Amounts reclassified from AOCI 23.0 — — 23.0 Net current period other comprehensive income (loss) (796.7) 445.9 1.4 (349.4) Ending balance, December 31, 2022 $ (449.6) $ 59.0 $ (8.8) $ (399.4) Beginning balance, January 1, 2021 $ 366.3 $ — $ (11.2) $ 355.1 Effect of adopting ASU 2018-12 71.1 (497.7) — (426.6) Other comprehensive income (loss) before reclassifications (96.4) 110.8 1.0 15.4 Amounts reclassified from AOCI 6.1 — — 6.1 Net current period other comprehensive income (loss) (90.3) 110.8 1.0 21.5 Ending balance, December 31, 2021 $ 347.1 $ (386.9) $ (10.2) $ (50.0) (1) All amounts are net of tax. (2) The pretax amounts reclassified from AOCI, $(20.3) million, $(29.1) million and $(7.7) million, are included in net investment gains (losses) and the related income tax expense (benefit), $(4.3) million, $(6.1) million and $(1.6) million, are included in income tax expense (benefit) in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021, respectively. |
Supplemental Consolidated Cas_2
Supplemental Consolidated Cash and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Reconciliation of Net Income to Net Cash Provided by Operating Activities | ($ in millions) Years Ended December 31, 2023 2022 2021 Cash $ 29.0 $ 42.2 $ 133.0 Restricted cash 0.7 0.6 0.7 Total cash and restricted cash shown in the Consolidated Statements of Cash Flows $ 29.7 $ 42.8 $ 133.7 Cash paid during the year for: Interest $ 30.1 $ 18.2 $ 13.5 Income taxes 14.0 8.6 23.7 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for these Segments | Summarized financial information for these segments is as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) December 31, 2023 2022 2021 Net premiums and contract charges earned Property & Casualty $ 645.6 $ 608.2 $ 617.4 Life & Retirement 151.7 144.0 143.4 Supplemental & Group Benefits (1) 259.8 275.5 128.0 Total $ 1,057.1 $ 1,027.7 $ 888.8 Net investment income Property & Casualty $ 37.9 $ 31.4 $ 61.1 Life & Retirement 369.9 338.3 338.6 Supplemental & Group Benefits (1) 38.9 33.3 25.2 Corporate & Other 0.3 — (0.1) Intersegment eliminations (2.2) (2.1) (2.3) Total $ 444.8 $ 400.9 $ 422.5 Net income (loss) Property & Casualty $ (35.5) $ (44.4) $ 57.0 Life & Retirement 71.5 63.8 89.1 Supplemental & Group Benefits (1) 54.9 65.9 52.9 Corporate & Other (45.9) (65.5) (28.6) Total $ 45.0 $ 19.8 $ 170.4 |
Summary of Additional Significant Financial Information for these Segments | ($ in millions) December 31, 2023 2022 2021 Assets Property & Casualty $ 1,218.1 $ 1,083.8 $ 1,243.4 Life & Retirement 11,365.0 10,754.4 12,144.2 Supplemental & Group Benefits (1) 1,338.8 1,359.3 855.6 Corporate & Other 190.4 173.4 281.8 Intersegment eliminations (62.4) (64.8) (64.8) Total $ 14,049.9 $ 13,306.1 $ 14,460.2 Additional significant financial information for these segments is as follows (2022 and 2021 recast for the adoption of LDTI): ($ in millions) Years Ended December 31, 2023 2022 2021 DAC amortization expense Property & Casualty $ 71.3 $ 64.3 $ 67.7 Life & Retirement 28.0 23.0 22.0 Supplemental & Group Benefits (1) 1.9 0.9 0.9 Total $ 101.2 $ 88.2 $ 90.6 Income tax expense (benefit) Property & Casualty $ (9.8) $ (13.8) $ 13.2 Life & Retirement 15.1 10.6 19.3 Supplemental & Group Benefits (1) 14.8 18.1 14.5 Corporate & Other (11.8) (18.2) (7.3) Total $ 8.3 $ (3.3) $ 39.7 (1) Group Benefits was acquired effective January 1, 2022 and thus, comparison to amounts for the year ended December 31, 2021 is not meaningful. |
Prior Period Consolidated Fin_2
Prior Period Consolidated Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following tables summarize the effects of adopting LDTI on our Consolidated Financial Statements. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED BALANCE SHEET ($ in millions, except share data) December 31, 2022 Effect of the Adoption of ASU 2018-12 Reclassifications (1) December 31, 2022 As Reported As Adjusted Assets Total investments $ 6,587.6 $ — $ — $ 6,587.6 Cash 42.8 — — 42.8 Deferred policy acquisition costs 433.1 (102.5) — 330.6 Reinsurance balances receivable 506.2 (38.2) — 468.0 Deposit asset on reinsurance 2,516.6 — — 2,516.6 Intangible assets 185.2 — — 185.2 Goodwill 54.3 — — 54.3 Other assets 328.7 — — 328.7 Separate Account variable annuity assets 2,792.3 — — 2,792.3 Total assets $ 13,446.8 $ (140.7) $ — $ 13,306.1 Liabilities and Shareholders' Equity Policy liabilities Investment contract and policy reserves $ 6,968.0 $ (151.9) $ (6,816.1) $ — Future policy benefit reserves — — 1,718.0 1,718.0 Policyholders' account balances — — 5,260.6 5,260.6 Unpaid claims and claim expenses 585.1 (2.9) (18.2) 564.0 Unearned premiums 264.2 1.9 — 266.1 Total policy liabilities 7,817.3 (152.9) 144.3 7,808.7 Other policyholder funds 954.0 (0.4) (144.3) 809.3 Other liabilities 297.0 2.5 — 299.5 Short-term debt 249.0 — — 249.0 Long-term debt 249.0 — — 249.0 Separate Account variable annuity liabilities 2,792.3 — — 2,792.3 Total liabilities 12,358.6 (150.8) — 12,207.8 Preferred stock — — — — Common stock 0.1 — — 0.1 Additional paid-in capital 502.6 — — 502.6 Retained earnings 1,468.6 43.8 — 1,512.4 Accumulated other comprehensive income (loss), net of tax: Net unrealized investment losses on fixed maturity securities (356.9) (92.7) — (449.6) Net reserve remeasurements attributable to discount rates — 59.0 — 59.0 Net funded status of benefit plans (8.8) — — (8.8) Treasury stock, at cost (517.4) — — (517.4) Total shareholders’ equity 1,088.2 10.1 — 1,098.3 Total liabilities and shareholders’ equity $ 13,446.8 $ (140.7) $ — $ 13,306.1 (1) The Company has reclassified the presentation of certain information to conform to the current year's presentation. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ($ in millions, except per share data) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2022 December 31, 2022 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 1,029.0 $ (1.3) $ 1,027.7 Net investment income 400.9 — 400.9 Net investment losses (56.5) — (56.5) Other income 9.5 — 9.5 Total revenues 1,382.9 (1.3) 1,381.6 Benefits, losses and expenses Benefits, claims and settlement expenses 761.6 (14.6) 747.0 Interest credited 177.6 (4.2) 173.4 Operating expenses 315.9 (0.4) 315.5 DAC amortization expense 98.7 (10.5) 88.2 Intangible asset amortization expense 16.8 — 16.8 Interest expense 19.4 — 19.4 Other expense - goodwill and intangible asset impairment 4.8 — 4.8 Total benefits, losses and expenses 1,394.8 (29.7) 1,365.1 Income before income taxes (11.9) 28.4 16.5 Income tax expense (benefit) (9.3) 6.0 (3.3) Net income (2.6) 22.4 19.8 Net income per share Basic (0.06) 0.54 0.48 Diluted (0.06) 0.53 0.47 Weighted average number of shares and equivalent shares Basic 41.6 — 41.6 Diluted 41.8 — 41.8 Statement of Comprehensive Income (Loss) Net income (2.6) 22.4 19.8 Other comprehensive income (loss), net of tax: Change in net unrealized investment losses on fixed maturity securities (647.6) (149.1) (796.7) Change in net reserve remeasurements attributable to discount rates — 445.9 445.9 Change in net funded status of benefit plans 1.4 — 1.4 Other comprehensive loss (646.2) 296.8 (349.4) Comprehensive income (loss) $ (648.8) $ 319.2 $ (329.6) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ($ in millions, except per share data) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2021 December 31, 2021 As Reported As Adjusted Statement of Operations Revenues Net premiums and contract charges earned $ 889.6 $ (0.8) $ 888.8 Net investment income 422.5 — 422.5 Net investment losses (11.0) — (11.0) Other income 29.0 — 29.0 Total revenues 1,330.1 (0.8) 1,329.3 Benefits, losses and expenses Benefits, claims and settlement expenses 617.7 (27.0) 590.7 Interest credited 164.4 (4.4) 160.0 Operating expenses 251.5 (0.5) 251.0 DAC amortization expense 94.7 (4.1) 90.6 Intangible asset amortization expense 13.0 — 13.0 Interest expense 13.9 — 13.9 Total benefits, losses and expenses 1,155.2 (36.0) 1,119.2 Income before income taxes 174.9 35.2 210.1 Income tax expense (benefit) 32.1 7.6 39.7 Net income 142.8 27.6 170.4 Net income per share Basic 3.40 0.66 4.06 Diluted 3.39 0.65 4.04 Weighted average number of shares and equivalent shares Basic 42.0 — 42.0 Diluted 42.2 — 42.2 Statement of Comprehensive Income (Loss) Net income 142.8 27.6 170.4 Other comprehensive income (loss), net of tax: Effect of adopting ASU 2018-12 — (426.6) (426.6) Change in net unrealized investment losses on fixed maturity securities (75.6) (14.7) (90.3) Change in net reserve remeasurements attributable to discount rates — 110.8 110.8 Change in net funded status of benefit plans 1.0 — 1.0 Other comprehensive loss (74.6) (330.5) (405.1) Comprehensive income (loss) $ 68.2 $ (302.9) $ (234.7) HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY ($ in millions) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2022 December 31, 2022 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 502.6 — 502.6 Retained earnings Beginning balance 1,524.9 22.1 1,547.0 Net income (2.6) 22.4 19.8 Effect of adopting ASU 2018-12 (1) — (0.7) (0.7) Dividends per share; 2022, $1.28 per share (53.7) — (53.7) Ending balance 1,468.6 43.8 1,512.4 Accumulated other comprehensive income (loss), net of tax: Beginning balance 280.5 (330.5) (50.0) Change in net unrealized investment losses on fixed maturity securities (647.6) (149.1) (796.7) Change in net reserve remeasurements attributable to discount rates — 445.9 445.9 Change in net funded status of benefit plans 1.4 — 1.4 Ending balance (365.7) (33.7) (399.4) Treasury stock, at cost Ending balance (517.4) — (517.4) Shareholders' equity at end of period $ 1,088.2 $ 10.1 $ 1,098.3 (1) See Note 1 to the Consolidated Financial Statements for information regarding ASU 2018-12. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY ($ in millions) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2021 December 31, 2021 As Reported As Adjusted Common stock, $0.001 par value Ending balance $ 0.1 $ — $ 0.1 Additional paid-in capital Ending balance 495.3 — 495.3 Retained earnings Beginning balance 1,434.6 — 1,434.6 Net income 142.8 27.6 170.4 Effect of adopting ASU 2018-12 — (5.5) (5.5) Dividends per share; 2021, $1.24 per share (52.5) — (52.5) Ending balance 1,524.9 22.1 1,547.0 Accumulated other comprehensive income (loss), net of tax: Beginning balance 355.1 — 355.1 Effect of adopting ASU 2018-12 — (426.6) (426.6) Change in net unrealized investment losses on fixed maturity securities (75.6) (14.7) (90.3) Change in net reserve remeasurements attributable to discount rates — 110.8 110.8 Change in net funded status of benefit plans 1.0 — 1.0 Ending balance 280.5 (330.5) (50.0) Treasury stock, at cost Ending balance (493.4) — (493.4) Shareholders' equity at end of period $ 1,807.4 $ (308.4) $ 1,499.0 HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS ($ in millions) Year Ended Effect of the Adoption of ASU 2018-12 Year Ended December 31, 2022 December 31, 2022 As Reported As Adjusted Cash flows - operating activities Net income $ (2.6) $ 22.4 $ 19.8 Adjustments to reconcile net income to net cash provided by operating activities: Net investment losses 56.5 — 56.5 Depreciation and intangible asset amortization 27.6 — 27.6 Share-based compensation expense 8.9 — 8.9 Loss from EMA investments, net of dividends or distributions 18.2 — 18.2 Other expense - goodwill impairment 4.8 — 4.8 Changes in: Insurance liabilities 440.5 (106.3) 334.2 Amounts due under reinsurance agreements (348.2) 38.4 (309.8) Income tax liabilities (17.1) 127.6 110.5 Other operating assets and liabilities (28.1) (81.3) (109.4) Other, net 11.0 (0.8) 10.2 Net cash provided by operating activities 171.5 — 171.5 Cash flows - investing activities Net cash used in investing activities (214.6) — (214.6) Cash flows - financing activities Net cash provided by financing activities (47.8) — (47.8) Net decrease in cash (90.9) — (90.9) Cash at beginning of period 133.7 — 133.7 Cash at end of period $ 42.8 $ — $ 42.8 |
Schedule of Selected Quarterly Financial Data | Selected unaudited quarterly financial data is presented below. ($ in millions, except per share data) Three Months Ended December 31, September 30, June 30, March 31, 2022 Insurance premiums and contract changes earned $ 259.1 $ 257.4 $ 255.4 $ 255.8 Insurance premiums written and contract deposits 358.2 372.7 359.9 346.2 Total Revenues 346.4 342.6 345.9 346.7 Net income (16.7) 20.4 (4.2) 20.3 Per share information Basic Net income $ (0.40) $ 0.49 $ (0.10) $ 0.48 Shares of common stock - weighted average 41.4 41.4 41.8 41.9 Diluted Net income $ (0.40) $ 0.49 $ (0.10) $ 0.48 Shares of common stock and equivalent shares - weighted average 41.4 41.6 41.8 42.1 2021 Insurance premiums and contract changes earned $ 210.6 $ 225.2 $ 225.6 $ 227.4 Insurance premiums written and contract deposits 314.0 346.2 334.2 304.4 Total Revenues 331.2 329.4 346.9 321.7 Net income 46.9 20.2 54.2 49.1 Per share information Basic Net income $ 1.12 $ 0.48 $ 1.29 $ 1.17 Shares of common stock - weighted average 42.0 42.0 42.0 41.9 Diluted Net income $ 1.11 $ 0.48 $ 1.29 $ 1.16 Shares of common stock and equivalent shares - weighted average 42.2 42.2 42.2 42.1 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) plan segment $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Number of reportable segments (in segments) | segment | 4 | ||||
Amortization of acquisition costs for property and casualty contracts, first term | 6 months | ||||
Amortization of acquisition costs for property and casualty contracts, second term | 12 months | ||||
Amortization of acquisition costs for supplemental and group benefits | 6 years | ||||
Purchase price | $ 156.9 | ||||
Amortization in 2024 | 14.5 | ||||
Amortization in 2025 | 14.3 | ||||
Amortization in 2026 | 14.2 | ||||
Amortization in 2027 | 14.1 | ||||
Amortization in 2028 | 14.1 | ||||
Goodwill impairment | $ 0 | $ 2 | $ 0 | ||
Purchase of FHLB activity-based common stock as percentage of borrowing, required | 4.50% | ||||
Purchase of FHLB activity-based common stock as percentage of borrowing, percentage, authorized | 15% | 25% | |||
Repayment of FHLB funding agreements | $ 189.5 | $ 149 | [1] | 362 | [1] |
FHLB advances | $ 904.5 | 792.5 | |||
Reverse repurchase agreement, cash to value percentage | 95% | ||||
Securities sold under agreements to repurchase | $ 0 | 70.2 | |||
Share-based compensation expense | $ 7.5 | 6.9 | 6.6 | ||
Weighted average fair value of nonvested options outstanding (in usd per share) | $ / shares | $ 8.11 | ||||
Unrecognized share-based compensation expense, nonvested options | $ 2.6 | ||||
Antidilutive securities exclude from EPS computation (in shares) | shares | 1,243,169 | ||||
Minimum exercise price (in usd per share) | $ / shares | $ 32.13 | ||||
Maximum exercise price (in usd per share) | $ / shares | $ 42.95 | ||||
Qualified Plan | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Number of retirement plans | plan | 2 | ||||
Nonqualified Plan | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Number of retirement plans | plan | 2 | ||||
401(k) plan assets | Qualified Plan | Pension Plan | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Employer matching contribution as percent of employees' gross pay | 3% | ||||
Percentage of employer match | 5% | ||||
Vesting period for Company contributions | 5 years | ||||
Fair Value | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Securities sold under agreements to repurchase | $ 0 | 73.9 | |||
Employee stock option | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Share-based compensation expense | 1.4 | $ 1.2 | $ 1.2 | ||
Restricted stock units | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Unrecognized share-based compensation expense, equity instruments other than options | 8.9 | ||||
HMLIC and NTA | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Proceeds from FHLB funding agreements | 301.5 | ||||
Repayment of FHLB funding agreements | $ 189.5 | ||||
Minimum | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Purchase of FHLB activity-based common stock as percentage of borrowing, required | 2% | ||||
Real estate property | Minimum | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Property, plant and equipment, useful life | 20 years | ||||
Real estate property | Maximum | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Property, plant and equipment, useful life | 45 years | ||||
Lease hold improvements and other property and equipment | Minimum | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Lease hold improvements and other property and equipment | Maximum | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Value of business acquired | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Purchase price | $ 64.8 | ||||
Amortization in 2024 | 5.4 | ||||
Amortization in 2025 | 5.1 | ||||
Amortization in 2026 | 4.7 | ||||
Amortization in 2027 | 4.4 | ||||
Amortization in 2028 | 4.1 | ||||
Value of distribution acquired | NTA | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Purchase price | 36 | ||||
Amortization in 2024 | 2.9 | ||||
Amortization in 2025 | 2.9 | ||||
Amortization in 2026 | 2.9 | ||||
Amortization in 2027 | 2.9 | ||||
Amortization in 2028 | 2.9 | ||||
Value of agency relationships | NTA | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Amortization in 2024 | 1.4 | ||||
Amortization in 2025 | 1.2 | ||||
Amortization in 2026 | 1 | ||||
Amortization in 2027 | 0.9 | ||||
Amortization in 2028 | 0.8 | ||||
Value of agency relationship | 7.2 | ||||
Value of customer relationships | Benefit Consultants Group Inc. | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Purchase price | 48.4 | ||||
Amortization in 2024 | 4.8 | ||||
Amortization in 2025 | 5.1 | ||||
Amortization in 2026 | 5.5 | ||||
Amortization in 2027 | 5.9 | ||||
Amortization in 2028 | $ 6.3 | ||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Deferred policy acquisition costs | $ 336.3 | $ 330.6 | [1] |
Property & Casualty | |||
Segment Reporting Information [Line Items] | |||
Deferred policy acquisition costs | 29.3 | 24.5 | |
Life & Retirement | |||
Segment Reporting Information [Line Items] | |||
Deferred policy acquisition costs | 297.7 | 299.5 | |
Supplemental & Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Deferred policy acquisition costs | $ 9.3 | $ 6.6 | |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Property and Equipment Included in Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property and Equipment | ||
Property and equipment | $ 129.4 | $ 148.3 |
Less: accumulated depreciation | 60.8 | 79 |
Total | $ 68.6 | $ 69.3 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Maturity Dates For FHLB Funding Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 904.5 | $ 792.5 |
Maturing On September 09,2026 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 25 | |
FHLB interest rate | 5.60% | |
Maturing On February 13, 2026 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 50 | |
FHLB interest rate | 5.70% | |
Maturing On February 13, 2026 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 10 | |
FHLB interest rate | 5.70% | |
Maturing On January 16, 2026 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 200 | |
FHLB interest rate | 5.60% | |
Maturing On September 11, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 125 | |
FHLB interest rate | 0.60% | |
Maturing On June 26, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 12.5 | |
FHLB interest rate | 0.70% | |
Maturing On February 28, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 30 | |
FHLB interest rate | 5.70% | |
Maturing On February 28, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 10 | |
FHLB interest rate | 5.70% | |
Maturing On February 14, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 10 | |
FHLB interest rate | 0.50% | |
Maturing On February 07 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 40 | |
FHLB interest rate | 5.70% | |
Maturing On February 07 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 31 | |
FHLB interest rate | 5.70% | |
Maturing On January 10, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 60 | |
FHLB interest rate | 5.80% | |
Maturing On January 10, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 25 | |
FHLB interest rate | 5.80% | |
Maturing On January 10, 2025 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 6 | |
FHLB interest rate | 5.80% | |
Maturing On December 13, 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 100 | |
FHLB interest rate | 5.60% | |
Maturing On August 28, 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 5 | |
FHLB interest rate | 5.70% | |
Maturing On August 28, 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 10 | |
FHLB interest rate | 5.70% | |
Maturing On May 22 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 50 | |
FHLB interest rate | 5.70% | |
Maturing On May 22 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 10 | |
FHLB interest rate | 5.70% | |
Maturing On April 24 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 20 | |
FHLB interest rate | 5.70% | |
Maturing On April 03, 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 25 | |
FHLB interest rate | 5.70% | |
Maturing On January 12, 2024 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
FHLB advances | $ 50 | |
FHLB interest rate | 5.80% |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Fair Value Assumptions for Stock Option Pricing (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options granted (in shares) | 209,028 | 162,224 | 183,272 |
Weighted average grant date fair value of stock options granted (in usd per share) | $ 8.50 | $ 8.51 | $ 7.73 |
Weighted average assumptions: | |||
Expected dividend yield | 3.60% | 3.20% | 3% |
Expected life, in years | 5 years 3 months 18 days | 5 years 2 months 12 days | 5 years 1 month 6 days |
Expected volatility (based on historical volatility) | 30.90% | 30.20% | 30.10% |
Options Member | |||
Weighted average assumptions: | |||
Risk-free interest rate | 4.10% | 1.90% | 0.80% |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies - Contributions and Plan Assets (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 16.2 | $ 17.2 |
Qualified Plan | 401(k) plan assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 245.7 | 207.1 |
Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | $ 13.9 | $ 13.6 |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies - Calculation of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Basic: | |||||||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [1],[2] | $ 170.4 | [1],[2] |
Weighted average number of common shares during the period (in shares) | 41.4 | 41.4 | 41.8 | 41.9 | 42 | 42 | 42 | 41.9 | 41.3 | 41.6 | [1] | 42 | [1] |
Basic (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.12 | $ 0.48 | $ 1.29 | $ 1.17 | $ 1.09 | $ 0.48 | [1] | $ 4.06 | [1] |
Diluted: | |||||||||||||
Weighted average number of common shares during the period (in shares) | 41.4 | 41.4 | 41.8 | 41.9 | 42 | 42 | 42 | 41.9 | 41.3 | 41.6 | [1] | 42 | [1] |
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities | |||||||||||||
CSUs related to deferred compensation for employees (in shares) | 0 | 0 | 0 | ||||||||||
Total common and common equivalent shares adjusted to calculate diluted earnings per share (in shares) | 41.4 | 41.6 | 41.8 | 42.1 | 42.2 | 42.2 | 42.2 | 42.1 | 41.4 | 41.8 | [1] | 42.2 | [1] |
Net income per share - diluted (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.11 | $ 0.48 | $ 1.29 | $ 1.16 | $ 1.09 | $ 0.47 | [1] | $ 4.04 | [1] |
Equity Option | |||||||||||||
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities | |||||||||||||
Stock options (in shares) | 0 | 0 | 0 | ||||||||||
Restricted stock units | |||||||||||||
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities | |||||||||||||
RSUs related to incentive compensation (in shares) | 0.1 | 0.2 | 0.2 | ||||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Basis of Presentation and Si_11
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in LFPB due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Whole Life | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | $ (0.6) | $ 5.2 | $ 2.8 | |
Less: Reinsurance recoverable | $ (64.3) | (63.1) | (0.5) | (0.1) |
Less: Change in discount rate assumptions | (0.2) | |||
Net liability for future policy benefits at September 30, 2023 | 234.5 | 216.4 | 317.2 | 330.3 |
Whole Life | Change in discount rate assumptions | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 111.5 | |||
Whole Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 0.4 | |||
Term Life | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | (16.7) | 21.5 | (4.8) | |
Less: Reinsurance recoverable | (19.1) | (15.3) | (5.5) | (5.4) |
Less: Change in discount rate assumptions | (0.9) | |||
Net liability for future policy benefits at September 30, 2023 | 111.1 | 97.1 | 112.1 | 114.2 |
Term Life | Change in discount rate assumptions | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 27.3 | |||
Term Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 0 | |||
Experience life | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 5 | 11 | (3.6) | |
Less: Reinsurance recoverable | (1) | (0.8) | (1.1) | (1.3) |
Less: Change in discount rate assumptions | (0.7) | |||
Net liability for future policy benefits at September 30, 2023 | 810.3 | 798.5 | 1,097 | 1,189.3 |
Experience life | Change in discount rate assumptions | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 433 | |||
Experience life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 0 | |||
Limited-pay whole life | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | (0.2) | 2 | 0 | |
Less: Reinsurance recoverable | (1.2) | 0 | (0.2) | (0.1) |
Less: Change in discount rate assumptions | (0.1) | |||
Net liability for future policy benefits at September 30, 2023 | 56.2 | 49.6 | 73 | 69.3 |
Limited-pay whole life | Change in discount rate assumptions | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 18.2 | |||
Limited-pay whole life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 0 | |||
Supplemental health | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 8.9 | 13.8 | (3) | |
Less: Reinsurance recoverable | (4) | (3.4) | 0 | 0 |
Less: Change in discount rate assumptions | 0 | |||
Net liability for future policy benefits at September 30, 2023 | 241.6 | 261 | 359.1 | 415.5 |
Supplemental health | Change in discount rate assumptions | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 23 | |||
Supplemental health | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 0 | |||
Cancer | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at September 30, 2023 | 92.7 | 101.8 | 140.8 | 163.5 |
Accident | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at September 30, 2023 | 21.4 | 21.8 | 28.7 | 31.2 |
Disability | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at September 30, 2023 | 23.5 | 23.1 | 29.3 | 32 |
Other | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits at September 30, 2023 | 104 | 114.3 | 160.3 | 188.8 |
SPIA (life contingent) | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 0 | 0 | 0 | |
Less: Reinsurance recoverable | (3.6) | (3.2) | 0 | 0 |
Less: Change in discount rate assumptions | 0 | |||
Net liability for future policy benefits at September 30, 2023 | $ 100.6 | $ 100.1 | $ 124.7 | 136.5 |
SPIA (life contingent) | Change in discount rate assumptions | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | 20.6 | |||
SPIA (life contingent) | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in cash flow assumptions | $ 0 |
Basis of Presentation and Si_12
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in DAC due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ 336.3 | $ 330.6 | [1] | ||
Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 22.3 | 20.9 | $ 19.1 | $ 17.8 | |
Term Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 32.6 | 30 | 27.5 | 25.6 | |
Experience life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 5.7 | 5.8 | 6 | 6.2 | |
Limited-pay whole life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 7.4 | 6.7 | 5.6 | 4.4 | |
Indexed Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 16.8 | 15.4 | 13.7 | 12.9 | |
Supplemental health | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 8.2 | 6.2 | 4.9 | 4.3 | |
Total Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ 214 | 221.1 | $ 223.3 | 223.1 | |
Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 433.1 | ||||
Previously Reported | Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 17.8 | ||||
Previously Reported | Term Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 25.6 | ||||
Previously Reported | Experience life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 2.6 | ||||
Previously Reported | Limited-pay whole life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 4.4 | ||||
Previously Reported | Indexed Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 11.3 | ||||
Previously Reported | Supplemental health | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 4.3 | ||||
Previously Reported | Total Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 137.7 | ||||
Effect of the Adoption of ASU 2018-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ (102.5) | ||||
Effect of the Adoption of ASU 2018-12 | Whole Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Term Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Experience life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 3.6 | ||||
Effect of the Adoption of ASU 2018-12 | Limited-pay whole life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Indexed Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 1.6 | ||||
Effect of the Adoption of ASU 2018-12 | Supplemental health | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | 0 | ||||
Effect of the Adoption of ASU 2018-12 | Total Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred policy acquisition costs | $ 85.4 | ||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Basis of Presentation and Si_13
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in MRBs due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Market risk benefit | $ (3.9) | $ 0.3 | $ 4.8 | $ 8.6 |
Less: Reinsurance recoverable | 0 | |||
Market risk benefits | $ 20.5 | $ 55.3 | 8.6 | |
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Market risk benefit | 0.1 | |||
Total adjustment for the difference between carrying amount and fair value | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Market risk benefit | 8.5 | |||
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Market risk benefit | 6.8 | |||
Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Market risk benefit | $ 1.7 |
Basis of Presentation and Si_14
Basis of Presentation and Significant Accounting Policies - Schedule of Changes in the Statement of Equity due to Adoption of ASU 2018-12 (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | [1] | Dec. 31, 2021 | [1] | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ 1,175.3 | $ 1,098.3 | $ 1,499 | ||||
Total | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (314) | (399.4) | (50) | $ 355.1 | [1] | ||
Total | Liability for future policy benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (496.4) | ||||||
Total | Deferred policy acquisition costs | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 71.1 | ||||||
Total | Deferred sales inducements | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 0 | ||||||
Total | Market risk benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (1.3) | ||||||
Total | Revision of Prior Period, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (426.6) | ||||||
Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ 1,502.2 | $ 1,512.4 | $ 1,547 | 1,434.6 | [1] | ||
Retained earnings | Liability for future policy benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (0.2) | ||||||
Retained earnings | Deferred policy acquisition costs | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 0 | ||||||
Retained earnings | Deferred sales inducements | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 0 | ||||||
Retained earnings | Market risk benefits | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | (5.3) | ||||||
Retained earnings | Revision of Prior Period, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ (5.5) | ||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Net Investment Income [Line Items] | |||||
Total net investment income | $ 444.8 | $ 400.9 | [1] | $ 422.5 | [1] |
Investment Portfolio | |||||
Net Investment Income [Line Items] | |||||
Investment expenses | (12.1) | (10.5) | (10.1) | ||
Total net investment income | 339.9 | 297.4 | 321.4 | ||
Deposit Asset On Reinsurance | |||||
Net Investment Income [Line Items] | |||||
Total net investment income | 104.9 | 103.5 | 101.1 | ||
Fixed maturity securities | Investment Portfolio | |||||
Net Investment Income [Line Items] | |||||
Investment income | 269.2 | 247.2 | 235.6 | ||
Equity securities | Investment Portfolio | |||||
Net Investment Income [Line Items] | |||||
Investment income | 6.5 | 9 | 5.3 | ||
Limited partnership interests | Investment Portfolio | |||||
Net Investment Income [Line Items] | |||||
Investment income | 59.1 | 40.5 | 79 | ||
Short-term and other investments | Investment Portfolio | |||||
Net Investment Income [Line Items] | |||||
Investment income | $ 17.2 | $ 11.2 | $ 11.6 | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments - Net Investment Lo
Investments - Net Investment Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Gain (Loss) on Securities [Line Items] | |||||
Net investment losses | $ (24) | $ (56.5) | [1] | $ (11) | [1] |
Fixed maturity securities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Net investment losses | (20.3) | (29.1) | (7.7) | ||
Equity securities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Net investment losses | (3.9) | (32.6) | (0.8) | ||
Short-term and other investments | |||||
Gain (Loss) on Securities [Line Items] | |||||
Net investment losses | $ 0.2 | $ 5.2 | $ (2.5) | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments - Net Investment Ga
Investments - Net Investment Gains (Losses) By Transaction Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Investments, Debt and Equity Securities [Abstract] | |||||
Credit loss impairments | $ (0.4) | $ (3.1) | $ (8.1) | ||
Intent-to-sell impairments | (6.7) | (7.6) | (2.3) | ||
Total impairments | (7.1) | (10.7) | (10.4) | ||
Sales and other, net | (25) | (17.8) | 4.3 | ||
Change in fair value - equity securities | 7.9 | (33.2) | (2.3) | ||
Change in fair value and losses realized on settlements - derivatives | 0.2 | 5.2 | (2.6) | ||
Net investment losses | $ (24) | $ (56.5) | [1] | $ (11) | [1] |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments - Allowance for Cre
Investments - Allowance for Credit Loss Impairments on Fixed Maturity Securities (Details) - Fixed maturity securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1.2 | $ 7.7 | $ 0 |
Credit losses on fixed maturity securities for which credit losses were not previously reported | 0 | 0 | 8.1 |
Net increases (decreases) related to credit losses previously reported | 0 | 3.1 | 0 |
Reduction of credit allowances related to sales | 0 | (9.2) | 0 |
Write-offs | 0 | (0.4) | (0.4) |
Ending balance | $ 1.2 | $ 1.2 | $ 7.7 |
Investments - Summary of Fair V
Investments - Summary of Fair Value and Amortized Costs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | $ 5,652.9 | $ 5,756.9 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | 5,652.9 | 5,756.9 |
Gross Unrealized Gains | 62.9 | 35 |
Gross Unrealized Losses | 480.5 | 606.9 |
Fair Value | 5,235.3 | 5,185 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | 713.4 | 638.2 |
Gross Unrealized Gains | 4.4 | 1.3 |
Gross Unrealized Losses | 64.6 | 69.1 |
Fair Value | 653.2 | 570.4 |
Other, including U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | 450.8 | 410 |
Gross Unrealized Gains | 0.8 | 0.5 |
Gross Unrealized Losses | 62.8 | 67.8 |
Fair Value | 388.8 | 342.7 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | 1,333.4 | 1,380.9 |
Gross Unrealized Gains | 28.6 | 16.9 |
Gross Unrealized Losses | 91.9 | 128.1 |
Fair Value | 1,270.1 | 1,269.7 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | 23.1 | 35.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 1.6 |
Fair Value | 22.1 | 33.5 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | 1,969.9 | 2,161.2 |
Gross Unrealized Gains | 23.1 | 12.7 |
Gross Unrealized Losses | 220.3 | 272.2 |
Fair Value | 1,772.7 | 1,901.7 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, net | 1,162.3 | 1,131.5 |
Gross Unrealized Gains | 6 | 3.6 |
Gross Unrealized Losses | 39.9 | 68.1 |
Fair Value | $ 1,128.4 | $ 1,067 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 security | Dec. 31, 2023 | Dec. 31, 2023 position | Dec. 31, 2022 USD ($) | Dec. 31, 2022 security | Dec. 31, 2022 | Dec. 31, 2022 position |
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Number of positions with a gross unrealized loss, 12 Months or Less (security) | security | 195 | 2,515 | ||||||
Number of positions with a gross unrealized loss, more than 12 months (security) | 2,305 | 2,305 | 587 | 587 | ||||
Number of position with a gross unrealized loss, total | security | 2,500 | 3,102 | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, 12 Months or Less (percent) | 9.20% | 68.20% | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, more than 12 months (percent) | 65.20% | 14.20% | ||||||
Fair value as a percentage of total fixed maturities and equity securities fair value, Total (percent) | 74.40% | 82.40% | ||||||
Fixed maturity securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | $ 479.2 | $ 3,533.7 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 3,415.5 | 734.2 | ||||||
Fixed maturity securities, fair value, total | 3,894.7 | 4,267.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 28.3 | 461.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 452.2 | 145.1 | ||||||
Fixed maturity securities, gross unrealized losses, total | 480.5 | 606.9 | ||||||
Mortgage-backed securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 45.3 | 458.3 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 458.5 | 52.6 | ||||||
Fixed maturity securities, fair value, total | 503.8 | 510.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0.8 | 54.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 63.8 | 14.7 | ||||||
Fixed maturity securities, gross unrealized losses, total | 64.6 | 69.1 | ||||||
Other | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 39.5 | 242.7 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 288 | 65.8 | ||||||
Fixed maturity securities, fair value, total | 327.5 | 308.5 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0.4 | 34.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 62.4 | 33.7 | ||||||
Fixed maturity securities, gross unrealized losses, total | 62.8 | 67.8 | ||||||
Municipal bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 64.5 | 911.6 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 724.6 | 42.2 | ||||||
Fixed maturity securities, fair value, total | 789.1 | 953.8 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0.9 | 113.7 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 91 | 14.4 | ||||||
Fixed maturity securities, gross unrealized losses, total | 91.9 | 128.1 | ||||||
Foreign government bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 1.5 | 32.7 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 20.6 | 0.4 | ||||||
Fixed maturity securities, fair value, total | 22.1 | 33.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0 | 1.4 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 1 | 0.2 | ||||||
Fixed maturity securities, gross unrealized losses, total | 1 | 1.6 | ||||||
Corporate bonds | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 195 | 1,345 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 1,171.3 | 148.9 | ||||||
Fixed maturity securities, fair value, total | 1,366.3 | 1,493.9 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 25.4 | 221.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 194.9 | 51.1 | ||||||
Fixed maturity securities, gross unrealized losses, total | 220.3 | 272.2 | ||||||
Other asset-backed securities | ||||||||
Fixed maturity securities, Fair Value | ||||||||
Fixed maturity securities, Fair Value, 12 Months or Less | 133.4 | 543.4 | ||||||
Fixed maturity securities, Fair Value, More than 12 Months | 752.5 | 424.3 | ||||||
Fixed maturity securities, fair value, total | 885.9 | 967.7 | ||||||
Fixed maturity securities, Gross Unrealized Losses | ||||||||
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less | 0.8 | 37.1 | ||||||
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months | 39.1 | 31 | ||||||
Fixed maturity securities, gross unrealized losses, total | $ 39.9 | $ 68.1 |
Investments - Fixed Maturity Se
Investments - Fixed Maturity Securities in Continuous Loss Position (Details) | Dec. 31, 2023 security | Dec. 31, 2023 position | Dec. 31, 2022 security | Dec. 31, 2022 position |
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 2,305 | 2,305 | 587 | 587 |
Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 2,103 | 471 | ||
Non Investment Grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 139 | 101 | ||
AAA | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 226 | 67 | ||
AA | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 1,006 | 217 | ||
A | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 423 | 94 | ||
BBB | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 448 | 93 | ||
BB | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 93 | 68 | ||
B | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 39 | 31 | ||
CCC or lower | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 7 | 2 | ||
Not rated | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of position with a gross unrealized loss, more than 12 months | 63 | 15 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Net Investment Income [Line Items] | |||
Investment grade rating | 96% | ||
Fair Value | $ 5,235.3 | $ 5,185 | [1] |
FHLB funding agreements | 904.5 | 792.5 | |
FHLB of Chicago | |||
Net Investment Income [Line Items] | |||
Fair Value | 987.2 | 860.4 | |
Governmental agencies as required by law in various states | |||
Net Investment Income [Line Items] | |||
Fair Value | $ 29.2 | $ 28.6 | |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments - Maturities of Fix
Investments - Maturities of Fixed Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Amortized Cost, net | |||
Due in 1 year or less | $ 298.6 | ||
Due after 1 year through 5 years | 1,482.4 | ||
Due after 5 years through 10 years | 1,435.1 | ||
Due after 10 years through 20 years | 1,426.3 | ||
Due after 20 years | 1,010.5 | ||
Amortized Cost, net | 5,652.9 | $ 5,756.9 | |
Fair Value | |||
Due in 1 year or less | 294.1 | ||
Due after 1 year through 5 years | 1,435.5 | ||
Due after 5 years through 10 years | 1,371.5 | ||
Due after 10 years through 20 years | 1,282.6 | ||
Due after 20 years | 851.6 | ||
Total | $ 5,235.3 | $ 5,185 | [1] |
Percent of Total Fair Value | |||
Due in 1 year or less | 5.60% | ||
Due after 1 year through 5 years | 27.40% | ||
Due after 5 years through 10 years | 26.20% | ||
Due after 10 years through 20 years | 24.50% | ||
Due after 20 years | 16.30% | ||
Total | 100% | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments - Sales of Fixed Ma
Investments - Sales of Fixed Maturities and Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds received | $ 377.6 | $ 752 | $ 578.2 |
Gross gains realized | 2.2 | 5.5 | 10.5 |
Gross losses realized | (14) | (23.7) | (7.7) |
Proceeds received | 18.7 | 10.8 | 4.7 |
Gross gains realized | 0 | 1.7 | 1.5 |
Gross losses realized | $ (11.8) | $ (1) | $ (0.1) |
Investments - Net Unrealized In
Investments - Net Unrealized Investment Gains and Losses on Fixed Maturities and Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | [1] | $ 1,098.3 | $ 1,499 | |||
Ending balance | 1,175.3 | 1,098.3 | [1] | $ 1,499 | [1] | |
Net unrealized investment gains (losses) on securities | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (449.6) | 347.1 | 366.3 | |||
Ending balance | (328.3) | (449.6) | 347.1 | |||
Net unrealized investment gains (losses) on securities | Effect of adopting ASU 2018-12 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 71.1 | |||||
Net unrealized investment gains (losses) on securities | Fixed maturity securities | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (449.6) | 347.1 | 366.3 | |||
Change in net unrealized investment gains (losses) on fixed maturity securities | 105.3 | (819.7) | (96.4) | |||
Reclassification of net investment (gains) losses on fixed maturity securities to net income | 16 | 23 | 6.1 | |||
Ending balance | $ (328.3) | $ (449.6) | 347.1 | |||
Net unrealized investment gains (losses) on securities | Fixed maturity securities | Effect of adopting ASU 2018-12 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 71.1 | |||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments- Carrying Amounts O
Investments- Carrying Amounts Of Equity Method Limited Partnership Interest (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Net Investment Income [Line Items] | |||
Limited partnership interests | $ 1,138.8 | $ 983.7 | [1] |
Commercial mortgage loan funds | |||
Net Investment Income [Line Items] | |||
Limited partnership interests | 660.8 | 593.6 | |
Real estate equity funds | |||
Net Investment Income [Line Items] | |||
Limited partnership interests | 109.2 | 71.3 | |
Private equity funds | |||
Net Investment Income [Line Items] | |||
Limited partnership interests | 92.7 | 76.3 | |
Infrastructure equity funds | |||
Net Investment Income [Line Items] | |||
Limited partnership interests | 77.2 | 72 | |
Infrastructure debt funds | |||
Net Investment Income [Line Items] | |||
Limited partnership interests | 59.1 | 60 | |
Other funds | |||
Net Investment Income [Line Items] | |||
Limited partnership interests | $ 139.8 | $ 110.5 | |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Investments - Offsetting of Ass
Investments - Offsetting of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Asset derivatives | ||
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheets | $ 19 | $ 6.8 |
Free-standing derivatives | ||
Asset derivatives | ||
Gross Amounts | 19 | 6.8 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheets | 19 | 6.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 18.5 | 5.9 |
Net Amount | $ 0.5 | |
Net Amount | $ 0.9 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of investment portfolio fair value pricing services or index price | 87.70% | 88.60% |
Net investment losses included in net income related to financial assets | $ (0.4) | $ 3.4 |
Net investment (gains) losses included in net income related to financial liabilities | $ (1.3) | 14.8 |
Fair Value Recurring Basis Unobservable Input Reconciliation Liability Gain Loss Statement Of Income Extensible List Not Disclosed Flag | true | |
Carrying Value | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Separate account (variable annuity) assets | $ 3,294.1 | 2,792.3 |
Fair Value | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Separate account (variable annuity) assets | $ 3,294.1 | 2,792.3 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of invested assets in total investment portfolio Level 3 recurring | 9.50% | |
Fair Value, Inputs, Level 3 | Fair Value | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Separate account (variable annuity) assets | $ 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Separate account (variable annuity) assets | 3,294.1 | 2,792.3 |
Fair Value, Inputs, Level 2 [Member] | Fair Value | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Separate account (variable annuity) assets | $ 0 | $ 0 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of hard-to-value fixed maturity securities | security | 75 | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of hard-to-value fixed maturity securities | security | 125 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Instruments Measured and Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Assets | |||
Total fixed maturity securities | $ 5,235.3 | $ 5,185 | [1] |
Equity securities | 86.2 | 99.6 | [1] |
Carrying Value | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 5,235.3 | 5,185 | |
Equity securities | 86.2 | 99.6 | |
Short-term investments | 132.9 | 109.4 | |
Other investments | 19 | 38.6 | |
Investments, Fair Value Disclosure, Total | 5,473.4 | 5,432.6 | |
Separate account (variable annuity) assets | 3,294.1 | 2,792.3 | |
Financial Liabilities | 86 | 92.5 | |
Carrying Value | Mortgage-backed securities | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 653.2 | 570.4 | |
Carrying Value | Other, including U.S. Treasury securities | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 388.8 | 342.6 | |
Carrying Value | Municipal bonds | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,270.1 | 1,269.7 | |
Carrying Value | Foreign government bonds | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 22.1 | 33.6 | |
Carrying Value | Corporate bonds | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,772.7 | 1,901.7 | |
Carrying Value | Other asset-backed securities | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,128.4 | 1,067 | |
Fair Value | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 5,235.3 | 5,185 | |
Equity securities | 86.2 | 99.6 | |
Short-term investments | 132.9 | 109.4 | |
Other investments | 19 | 38.6 | |
Investments, Fair Value Disclosure, Total | 5,473.4 | 5,432.6 | |
Separate account (variable annuity) assets | 3,294.1 | 2,792.3 | |
Financial Liabilities | 86 | 92.5 | |
Fair Value | Level 1 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 55.7 | 36.8 | |
Equity securities | 17.9 | 23.3 | |
Short-term investments | 132.9 | 109.4 | |
Other investments | 0 | 0 | |
Investments, Fair Value Disclosure, Total | 206.5 | 169.5 | |
Separate account (variable annuity) assets | 3,294.1 | 2,792.3 | |
Financial Liabilities | 0 | 0 | |
Fair Value | Level 2 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 4,665.6 | 4,724.9 | |
Equity securities | 63.8 | 74.3 | |
Short-term investments | 0 | 0 | |
Other investments | 19 | 38.6 | |
Investments, Fair Value Disclosure, Total | 4,748.4 | 4,837.8 | |
Separate account (variable annuity) assets | 0 | 0 | |
Financial Liabilities | 3.6 | 1.2 | |
Fair Value | Level 3 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 514 | 423.3 | |
Equity securities | 4.5 | 2 | |
Short-term investments | 0 | 0 | |
Other investments | 0 | 0 | |
Investments, Fair Value Disclosure, Total | 518.5 | 425.3 | |
Separate account (variable annuity) assets | 0 | 0 | |
Financial Liabilities | 82.4 | 91.3 | |
Fair Value | Mortgage-backed securities | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 653.2 | 570.4 | |
Fair Value | Mortgage-backed securities | Level 1 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 0 | 0 | |
Fair Value | Mortgage-backed securities | Level 2 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 653.2 | 567.8 | |
Fair Value | Mortgage-backed securities | Level 3 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 0 | 2.6 | |
Fair Value | Other, including U.S. Treasury securities | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 388.8 | 342.6 | |
Fair Value | Other, including U.S. Treasury securities | Level 1 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 45.6 | 24.6 | |
Fair Value | Other, including U.S. Treasury securities | Level 2 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 343.2 | 318 | |
Fair Value | Other, including U.S. Treasury securities | Level 3 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 0 | 0 | |
Fair Value | Municipal bonds | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,270.1 | 1,269.7 | |
Fair Value | Municipal bonds | Level 1 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 0 | 0 | |
Fair Value | Municipal bonds | Level 2 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,196.1 | 1,215.3 | |
Fair Value | Municipal bonds | Level 3 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 74 | 54.4 | |
Fair Value | Foreign government bonds | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 22.1 | 33.6 | |
Fair Value | Foreign government bonds | Level 1 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 0 | 0 | |
Fair Value | Foreign government bonds | Level 2 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 22.1 | 33.6 | |
Fair Value | Foreign government bonds | Level 3 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 0 | 0 | |
Fair Value | Corporate bonds | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,772.7 | 1,901.7 | |
Fair Value | Corporate bonds | Level 1 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 10.1 | 12.2 | |
Fair Value | Corporate bonds | Level 2 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,420.1 | 1,628.2 | |
Fair Value | Corporate bonds | Level 3 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 342.5 | 261.3 | |
Fair Value | Other asset-backed securities | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,128.4 | 1,067 | |
Fair Value | Other asset-backed securities | Level 1 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 0 | 0 | |
Fair Value | Other asset-backed securities | Level 2 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | 1,030.9 | 962 | |
Fair Value | Other asset-backed securities | Level 3 | Recurring | |||
Financial Assets | |||
Total fixed maturity securities | $ 97.5 | $ 105 | |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Transfers Between Different Fair Value Levels (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Change in net unrealized investment gains (losses) on fixed maturity securities | Change in net unrealized investment gains (losses) on fixed maturity securities |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment losses | Net investment losses |
Financial Assets | ||
Beginning balance | $ 425.3 | $ 371.4 |
Transfers into Level 3 | 79.4 | 193.8 |
Transfers out of Level 3 | (3.7) | (42.8) |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0.4 | (3.4) |
Net unrealized investment gains (losses) included in OCI | (0.8) | (38.2) |
Purchases | 76 | 33.2 |
Issuances | 0 | 0 |
Sales | (7.7) | (4.8) |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (50.4) | (83.9) |
Ending balance | 518.5 | 425.3 |
Financial Liabilities | ||
Beginning balance | 91.3 | 111.4 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses | ||
Net investment (gains) losses included in net income related to financial liabilities | $ 1.3 | $ (14.8) |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Change in net unrealized investment gains (losses) on fixed maturity securities | Change in net unrealized investment gains (losses) on fixed maturity securities |
Net unrealized investment gains (losses) included in OCI | $ 0.4 | $ (2.6) |
Purchases | 0 | 0 |
Issuances | 8 | 7.4 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (18.6) | (10.1) |
Ending balance | 82.4 | 91.3 |
Municipal bonds | ||
Financial Assets | ||
Beginning balance | 54.4 | 60.8 |
Transfers into Level 3 | 0 | 0.6 |
Transfers out of Level 3 | 0 | (3.2) |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | 0 |
Net unrealized investment gains (losses) included in OCI | 11.3 | (10.5) |
Purchases | 9.5 | 0.2 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (1.2) | 6.5 |
Ending balance | 74 | 54.4 |
Corporate bonds | ||
Financial Assets | ||
Beginning balance | 261.3 | 210.3 |
Transfers into Level 3 | 76.5 | 157.9 |
Transfers out of Level 3 | (3.7) | (34.8) |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | 0 |
Net unrealized investment gains (losses) included in OCI | (17.1) | (16.1) |
Purchases | 64.5 | 20.2 |
Issuances | 0 | 0 |
Sales | (7.7) | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (31.3) | (76.2) |
Ending balance | 342.5 | 261.3 |
Other asset-backed securities | ||
Financial Assets | ||
Beginning balance | 107.6 | 98.9 |
Transfers into Level 3 | 0.8 | 34.5 |
Transfers out of Level 3 | 0 | (4.8) |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | (3.3) |
Net unrealized investment gains (losses) included in OCI | 5 | (11.6) |
Purchases | 2 | 12.8 |
Issuances | 0 | 0 |
Sales | 0 | (4.8) |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (17.9) | (14.1) |
Ending balance | 97.5 | 107.6 |
Total | ||
Financial Assets | ||
Beginning balance | 423.3 | 370 |
Transfers into Level 3 | 77.3 | 193 |
Transfers out of Level 3 | (3.7) | (42.8) |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0 | (3.3) |
Net unrealized investment gains (losses) included in OCI | (0.8) | (38.2) |
Purchases | 76 | 33.2 |
Issuances | 0 | 0 |
Sales | (7.7) | (4.8) |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | (50.4) | (83.8) |
Ending balance | 514 | 423.3 |
Equity securities | ||
Financial Assets | ||
Beginning balance | 2 | 1.4 |
Transfers into Level 3 | 2.1 | 0.8 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses | ||
Net investment gains (losses) included in net income | 0.4 | (0.1) |
Net unrealized investment gains (losses) included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Paydowns, maturities and distributions | 0 | (0.1) |
Ending balance | $ 4.5 | $ 2 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | $ 5,235.3 | $ 5,185 | [1] | ||
Equity securities at fair value, (cost $86.2 and $99.6) | 86.2 | 99.6 | [1] | ||
Net MRBs | (3.9) | 0.3 | $ 4.8 | $ 8.6 | |
Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 5,235.3 | 5,185 | |||
Equity securities at fair value, (cost $86.2 and $99.6) | 86.2 | 99.6 | |||
Financial Liabilities | 86 | 92.5 | |||
Mortgage-backed securities | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 653.2 | 570.4 | |||
Municipal bonds | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 1,270.1 | 1,269.7 | |||
Corporate bonds | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 1,772.7 | 1,901.7 | |||
Other asset-backed securities | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 1,128.4 | 1,067 | |||
Fair Value, Inputs, Level 3 | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 514 | 423.3 | |||
Equity securities at fair value, (cost $86.2 and $99.6) | 4.5 | 2 | |||
Totals | 518.5 | 425.3 | |||
Financial Liabilities | 82.4 | 91.3 | |||
Derivatives embedded in fixed indexed annuity products | 86.3 | 91 | |||
Net MRBs | (3.9) | 0.3 | |||
Fair Value, Inputs, Level 3 | Fair Value | Recurring | Internal | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 180.4 | 9.5 | |||
Equity securities at fair value, (cost $86.2 and $99.6) | 0 | 0 | |||
Totals | 180.4 | 9.5 | |||
Financial Liabilities | 82.4 | 91.3 | |||
Fair Value, Inputs, Level 3 | Fair Value | Recurring | External | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 333.6 | 413.8 | |||
Equity securities at fair value, (cost $86.2 and $99.6) | 4.5 | 2 | |||
Totals | 338.1 | 415.8 | |||
Financial Liabilities | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Mortgage-backed securities | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 0 | 2.6 | |||
Fair Value, Inputs, Level 3 | Mortgage-backed securities | Fair Value | Recurring | Internal | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Mortgage-backed securities | Fair Value | Recurring | External | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 0 | 2.6 | |||
Fair Value, Inputs, Level 3 | Municipal bonds | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 74 | 54.4 | |||
Fair Value, Inputs, Level 3 | Municipal bonds | Fair Value | Recurring | Internal | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Municipal bonds | Fair Value | Recurring | External | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 74 | 54.4 | |||
Fair Value, Inputs, Level 3 | Corporate bonds | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 342.5 | 261.3 | |||
Fair Value, Inputs, Level 3 | Corporate bonds | Fair Value | Recurring | Internal | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 180.4 | 9.5 | |||
Fair Value, Inputs, Level 3 | Corporate bonds | Fair Value | Recurring | External | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 162.1 | $ 251.8 | |||
Fair Value, Inputs, Level 3 | Corporate bonds | discounted cash flow | yield | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Debt securities, measurement input | 6.8 | ||||
Fair Value, Inputs, Level 3 | Other asset-backed securities | Fair Value | Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 97.5 | $ 105 | |||
Fair Value, Inputs, Level 3 | Other asset-backed securities | Fair Value | Recurring | Internal | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Other asset-backed securities | Fair Value | Recurring | External | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2023, $5,652.9; 2022, $5,756.9) | $ 97.5 | $ 105 | |||
Minimum | Fair Value, Inputs, Level 3 | discounted cash flow | Measurement Input Option Budget [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.009 | 0.009 | |||
Minimum | Fair Value, Inputs, Level 3 | Corporate bonds | discounted cash flow | yield | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Debt securities, measurement input | 0.067 | ||||
Maximum | Fair Value, Inputs, Level 3 | discounted cash flow | Measurement Input Option Budget [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.038 | 0.034 | |||
Maximum | Fair Value, Inputs, Level 3 | Corporate bonds | discounted cash flow | yield | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Debt securities, measurement input | 0.170 | ||||
Weighted Average | Fair Value, Inputs, Level 3 | discounted cash flow | lapse rate | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.059 | 0.054 | |||
Net MRBs, measurement input | 0.059 | 0.053 | |||
Weighted Average | Fair Value, Inputs, Level 3 | discounted cash flow | mortality multiplier | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.694 | 0.678 | |||
Net MRBs, measurement input | 0.678 | 0.678 | |||
Weighted Average | Fair Value, Inputs, Level 3 | discounted cash flow | non-performance adjustment | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivatives embedded in fixed indexed annuity products, measurement input | 0.050 | 0.050 | |||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Financial Instrument Not Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Level 1 | ||
Financial Assets | ||
Other investments | $ 0 | $ 0 |
Deposit asset on reinsurance | 0 | 0 |
Financial Liabilities | ||
Policyholders' account balances | 0 | 0 |
Other policyholder funds | 0 | 0 |
Reverse repurchase agreements | 0 | |
Short-term debt | 0 | |
Long-term debt | 0 | 0 |
Level 2 | ||
Financial Assets | ||
Other investments | 33.8 | 0 |
Deposit asset on reinsurance | 0 | 0 |
Financial Liabilities | ||
Policyholders' account balances | 0 | 0 |
Other policyholder funds | 908.7 | 810.7 |
Reverse repurchase agreements | 73.9 | |
Short-term debt | 0 | |
Long-term debt | 571.4 | 240.5 |
Level 3 | ||
Financial Assets | ||
Other investments | 187.9 | 170.9 |
Deposit asset on reinsurance | 2,259.6 | 2,207.2 |
Financial Liabilities | ||
Policyholders' account balances | 4,861.8 | 4,940.3 |
Other policyholder funds | 7.3 | 52.3 |
Reverse repurchase agreements | 0 | |
Short-term debt | 249 | |
Long-term debt | 0 | 0 |
Carrying Value | ||
Financial Assets | ||
Other investments | 218.4 | 167.4 |
Deposit asset on reinsurance | 2,496.6 | 2,516.6 |
Financial Liabilities | ||
Policyholders' account balances | 4,996.3 | 5,039.7 |
Other policyholder funds | 916 | 863 |
Reverse repurchase agreements | 70.2 | |
Short-term debt | 249 | |
Long-term debt | 546 | 249 |
Fair Value | ||
Financial Assets | ||
Other investments | 221.7 | 170.9 |
Deposit asset on reinsurance | 2,259.6 | 2,207.2 |
Financial Liabilities | ||
Policyholders' account balances | 4,861.8 | 4,940.3 |
Other policyholder funds | 916 | 863 |
Reverse repurchase agreements | 73.9 | |
Short-term debt | 249 | |
Long-term debt | $ 571.4 | $ 240.5 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Expected contract term | 10 years | |
Fair value of collateral | $ 18.5 | $ 5.9 |
Maximum exposure | $ 0.3 | |
Call option | ||
Derivatives, Fair Value [Line Items] | ||
Derivative term of contract | 1 year |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivatives in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Short-term and other investments | Short-term and other investments |
Assets | ||
Derivatives, reported in Short-term and other investments | $ 19 | $ 6.8 |
FIA - embedded derivatives, reported in Policyholders' account balances | ||
Liabilities | ||
FIA - embedded derivatives, reported in Policyholders' account balances | 86.3 | 91 |
IUL - embedded derivatives, reported in Policyholders' account balances | ||
Liabilities | ||
IUL - embedded derivatives, reported in Policyholders' account balances | $ 3.6 | $ 1.2 |
Derivatives - Fair Value of D_2
Derivatives - Fair Value of Derivatives Included in Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment losses | Net investment losses | Net investment losses |
Change in fair value of derivatives: | |||
Net investment gains (losses) | $ 7.4 | $ (9.7) | $ 8.7 |
Sales | |||
Change in fair value of embedded derivatives: | |||
Net investment gains (losses) | $ (7.2) | $ 14.9 | $ (11.3) |
Derivatives - Notional and Fair
Derivatives - Notional and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional amount | $ 359.4 | $ 313 |
Fair value | 19 | 6.8 |
Bank of America, N.A. | ||
Derivative [Line Items] | ||
Notional amount | 270.2 | 245.5 |
Fair value | 15.5 | 6.5 |
Credit Suisse International | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Fair value | 0 | 0 |
Societe Generale | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Fair value | 0 | 0 |
Barclays Bank PLC | ||
Derivative [Line Items] | ||
Notional amount | 89.2 | 67.5 |
Fair value | 3.5 | 0.3 |
Citigroup | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Fair value | $ 0 | $ 0 |
Short-Duration Insurance Cont_3
Short-Duration Insurance Contracts - Summary of Reinsurance Reserve Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Gross reserves, beginning of year | [1] | $ 564 | |||
Less: reinsurance recoverables | 462.5 | ||||
Claims and claim expense payments for claims occurring during: | |||||
Plus: reinsurance recoverables | 424.2 | $ 462.5 | |||
Gross reserves, end of year | 581.7 | 564 | [1] | ||
Group benefits | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Less: reinsurance recoverables | 352.4 | ||||
Claims and claim expense payments for claims occurring during: | |||||
Plus: reinsurance recoverables | 306.2 | 352.4 | |||
Property & Casualty | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Gross reserves, beginning of year | 388.7 | 362.4 | $ 372.2 | ||
Less: reinsurance recoverables | 100.8 | 110.3 | 112.9 | ||
Net reserves, beginning of year | 287.9 | 252.1 | 259.3 | ||
Incurred claims and claim expenses: | |||||
Claims occurring in the current year | 557 | 512.3 | 455.1 | ||
Decrease in estimated reserves for claims occurring in prior years | 0 | 22 | (7.2) | ||
Total claims and claim expenses incurred | 557 | 534.3 | 447.9 | ||
Claims and claim expense payments for claims occurring during: | |||||
Current year | 353.1 | 320 | 307.1 | ||
Prior years | 179 | 178.5 | 148 | ||
Total claims and claim expense payments | 532.1 | 498.5 | 455.1 | ||
Net reserves, end of year | 312.8 | 287.9 | 252.1 | ||
Plus: reinsurance recoverables | 104 | 100.8 | 110.3 | ||
Gross reserves, end of year | 416.8 | 388.7 | 362.4 | ||
Group benefits | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Gross reserves, beginning of year | 121.6 | 125.4 | |||
Less: reinsurance recoverables | 27.9 | 28.5 | |||
Net reserves, beginning of year | 93.7 | 96.9 | |||
Incurred claims and claim expenses: | |||||
Claims occurring in the current year | 73.6 | 77.7 | |||
Decrease in estimated reserves for claims occurring in prior years | (13.9) | (10.9) | |||
Total claims and claim expenses incurred | 59.7 | 66.8 | |||
Claims and claim expense payments for claims occurring during: | |||||
Current year | 33.8 | 35 | |||
Prior years | 30.7 | 35 | |||
Total claims and claim expense payments | 64.5 | 70 | |||
Net reserves, end of year | 88.9 | 93.7 | 96.9 | ||
Plus: reinsurance recoverables | 27.7 | 27.9 | 28.5 | ||
Gross reserves, end of year | $ 116.6 | $ 121.6 | $ 125.4 | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Short-Duration Insurance Cont_4
Short-Duration Insurance Contracts - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Automobile liability coverage percent reserves | 68% | ||
Percentage of losses incurred | 99.70% | ||
Potential variability of property and casualty loss reserves | 1% | ||
Probability of other possible outcomes possible impact on net income | $ 2.5 | ||
Sensitivity analysis, hypothetical change in loss ratio, percent | 1% | ||
Sensitivity analysis, hypothetical change in loss ratio, amount | $ 0.8 | ||
Property & Casualty | |||
Segment Reporting Information [Line Items] | |||
Favorable (unfavorable) development of total reserves for claims occurring in prior years, net | 0 | $ (22) | $ 7.2 |
Unfavorable development of total reserves for claims occurring in prior years | 28 | ||
Favorable development of total reserves for claims occurring in prior years | $ 6 | ||
Group benefits | |||
Segment Reporting Information [Line Items] | |||
Favorable (unfavorable) development of total reserves for claims occurring in prior years, net | $ 13.9 |
Short-Duration Insurance Cont_5
Short-Duration Insurance Contracts - Average Annual Percentage Payout Of Incurred Claims by Age (Details) | Dec. 31, 2023 |
Homeowners | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 78.80% |
Year Two | 18.10% |
Year Three | 2.20% |
Year Four | 0.50% |
Year Five | 0.30% |
Year Six | 0% |
Year Seven | 0% |
Year Eight | 0% |
Year Nine | 0.10% |
Year Ten | 0% |
Auto liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 37.10% |
Year Two | 35.10% |
Year Three | 14.70% |
Year Four | 6.90% |
Year Five | 3.40% |
Year Six | 1.60% |
Year Seven | 0.60% |
Year Eight | 0.20% |
Year Nine | 0.40% |
Year Ten | 0% |
Auto physical damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 94.70% |
Year Two | 5.30% |
Year Three | 0% |
Year Four | 0% |
Year Five | 0% |
Year Six | 0% |
Year Seven | 0% |
Year Eight | 0% |
Year Nine | 0% |
Year Ten | 0% |
Specialty health | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 74.10% |
Year Two | 24.50% |
Year Three | 0.90% |
Year Four | 0.20% |
Year Five | 0.20% |
Year Six | 0.10% |
Year Seven | 0% |
Year Eight | 0% |
Year Nine | 0% |
Year Ten | 0% |
Group disability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 29.30% |
Year Two | 32.40% |
Year Three | 9.70% |
Year Four | 4% |
Year Five | 3.40% |
Year Six | 3.10% |
Year Seven | 3% |
Year Eight | 2.50% |
Year Nine | 2.10% |
Year Ten | 1.80% |
Short-Duration Insurance Cont_6
Short-Duration Insurance Contracts - Incurred and Paid Claims by Accident Year on a Net Basis (Details) $ in Millions | Dec. 31, 2023 USD ($) claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) |
Homeowners | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 1,398.3 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,324.9 | |||||||||
Outstanding prior to 2013 | 0 | |||||||||
Prior years paid | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 73.4 | |||||||||
Homeowners | 2014 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 106.4 | $ 106.4 | $ 106.4 | $ 106.4 | $ 106.6 | $ 106.6 | $ 106.8 | $ 109.1 | $ 113.5 | $ 111.6 |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 19,777 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 106.4 | 106.4 | 106.4 | 106.4 | 106.4 | 106.3 | 106.1 | 105.7 | 103 | 83.3 |
Homeowners | 2015 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 114.9 | 114.9 | 114.9 | 114.9 | 115.1 | 114.1 | 114.4 | 115.1 | 111.7 | |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 19,745 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 114.9 | 114.7 | 114.7 | 114.9 | 114.6 | 113.3 | 111.9 | 109.3 | 90.7 | |
Homeowners | 2016 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 118.1 | 118.1 | 117.9 | 117.9 | 117.9 | 117 | 118.6 | 115.9 | ||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 19,662 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 118.1 | 118 | 117.8 | 117.7 | 117.5 | 115.1 | 113.2 | 95.8 | ||
Homeowners | 2017 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 131.3 | 130.8 | 130.8 | 130.7 | 132.7 | 129.8 | 126.3 | |||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.3 | |||||||||
Cumulative Number of Reported Claims | claim | 19,741 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 131.2 | 130.7 | 130.5 | 130 | 129.8 | 128.5 | 106.8 | |||
Homeowners | 2018 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 156 | 157.2 | 158.1 | 158.9 | 157.4 | 166.8 | ||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.5 | |||||||||
Cumulative Number of Reported Claims | claim | 20,296 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 156.2 | 157.2 | 157.4 | 157 | 152.4 | 130.5 | ||||
Homeowners | 2019 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 131.1 | 130.9 | 132.1 | 129.9 | 130.4 | |||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.3 | |||||||||
Cumulative Number of Reported Claims | claim | 18,114 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 130.4 | 130 | 129.1 | 126.2 | 103.8 | |||||
Homeowners | 2020 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 146.9 | 145.4 | 151.9 | 155.7 | ||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.7 | |||||||||
Cumulative Number of Reported Claims | claim | 18,906 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 145.6 | 144 | 138.7 | 106.8 | ||||||
Homeowners | 2021 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 154.3 | 150.7 | 150.2 | |||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 1.9 | |||||||||
Cumulative Number of Reported Claims | claim | 18,056 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 151 | 146.3 | 114.9 | |||||||
Homeowners | 2022 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 156.2 | 162.2 | ||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 8.4 | |||||||||
Cumulative Number of Reported Claims | claim | 15,036 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 144.8 | 108.3 | ||||||||
Homeowners | 2023 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 183.1 | |||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 38.8 | |||||||||
Cumulative Number of Reported Claims | claim | 14,655 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 126.3 | |||||||||
Auto liability | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,731 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,531.2 | |||||||||
Outstanding prior to 2013 | 1.1 | |||||||||
Prior years paid | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 200.9 | |||||||||
Auto liability | 2014 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 160.1 | 160 | 159.4 | 159.3 | 159.4 | 159.8 | 159.9 | 158.5 | 157.2 | 155.1 |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 64,648 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 160 | 160 | 158.8 | 158.6 | 157.6 | 155.8 | 149.1 | 139.5 | 117.5 | 61.3 |
Auto liability | 2015 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 178.9 | 178.8 | 178.9 | 179.2 | 178.7 | 178.3 | 177 | 172.6 | 165.5 | |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 68,626 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 178.6 | 178.3 | 177.7 | 176.7 | 174.5 | 170.1 | 158 | 134.5 | 70.8 | |
Auto liability | 2016 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 189.5 | 189.6 | 189.2 | 188.1 | 186.6 | 184.6 | 184.4 | 180.4 | ||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.1 | |||||||||
Cumulative Number of Reported Claims | claim | 70,684 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 189.4 | 189 | 188.1 | 184.5 | 177.8 | 166.8 | 140.9 | 73.1 | ||
Auto liability | 2017 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 192.5 | 192.9 | 191.7 | 189.1 | 188.6 | 188.8 | 188 | |||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.3 | |||||||||
Cumulative Number of Reported Claims | claim | 68,371 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 191.8 | 190.8 | 185.8 | 179.8 | 166.6 | 139.5 | 70.7 | |||
Auto liability | 2018 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 192.3 | 192 | 189.8 | 192.9 | 195.3 | 200.3 | ||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 1.1 | |||||||||
Cumulative Number of Reported Claims | claim | 35,394 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 190.6 | 188 | 180.7 | 168.6 | 141.5 | 77.5 | ||||
Auto liability | 2019 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 181.2 | 181.5 | 176.7 | 180.1 | 181.1 | |||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 3 | |||||||||
Cumulative Number of Reported Claims | claim | 61,879 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 176.2 | 170.9 | 155.5 | 129.1 | 69.7 | |||||
Auto liability | 2020 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 137.3 | 136.3 | 134.9 | 137 | ||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 4.7 | |||||||||
Cumulative Number of Reported Claims | claim | 46,934 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 129.2 | 118.2 | 94 | 51.5 | ||||||
Auto liability | 2021 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 156.7 | 157.8 | 142.2 | |||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 11.5 | |||||||||
Cumulative Number of Reported Claims | claim | 45,005 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 136.5 | 112.5 | 52.9 | |||||||
Auto liability | 2022 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 166.1 | 165.6 | ||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 26.9 | |||||||||
Cumulative Number of Reported Claims | claim | 46,104 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 116.7 | 55.8 | ||||||||
Auto liability | 2023 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 176.4 | |||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 70 | |||||||||
Cumulative Number of Reported Claims | claim | 42,198 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 62.2 | |||||||||
Auto physical damage | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,081.2 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,070.2 | |||||||||
Outstanding prior to 2013 | 0 | |||||||||
Prior years paid | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 11 | |||||||||
Auto physical damage | 2014 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 95.2 | 95.2 | 95.2 | 95.2 | 95.2 | 95.2 | 95.2 | 95.4 | 95.6 | 95.6 |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 68,139 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 95.2 | 95.2 | 95.2 | 95.2 | 95.2 | 95.3 | 95.3 | 95.3 | 95.4 | 88.9 |
Auto physical damage | 2015 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 97.6 | 97.6 | 97.6 | 97.6 | 97.6 | 97.5 | 97.6 | 98 | 99.3 | |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 70,685 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 97.6 | 97.6 | 97.6 | 97.6 | 97.6 | 97.6 | 97.7 | 97.9 | 92.1 | |
Auto physical damage | 2016 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 109.6 | 109.5 | 109.5 | 109.6 | 109.6 | 109.3 | 109.5 | 112.4 | ||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 74,209 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 109.5 | 109.5 | 109.6 | 109.6 | 109.6 | 109.5 | 109.7 | 106.5 | ||
Auto physical damage | 2017 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 110.6 | 110.6 | 110.5 | 110.6 | 110.5 | 111.8 | 115.5 | |||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 73,998 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 110.6 | 110.6 | 110.6 | 110.6 | 110.7 | 110.8 | 105.2 | |||
Auto physical damage | 2018 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 108.3 | 108.2 | 108.3 | 108.3 | 108.9 | 109 | ||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 72,833 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 108.2 | 108.2 | 108.3 | 108.3 | 109.1 | 103.6 | ||||
Auto physical damage | 2019 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 109.9 | 110 | 110 | 110.5 | 111.6 | |||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ (0.1) | |||||||||
Cumulative Number of Reported Claims | claim | 73,128 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 110.1 | 110.1 | 110.1 | 110.7 | 106.2 | |||||
Auto physical damage | 2020 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 87 | 87.1 | 86.9 | 87 | ||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ (0.3) | |||||||||
Cumulative Number of Reported Claims | claim | 62,044 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 87.3 | 87.4 | 87.6 | 84.1 | ||||||
Auto physical damage | 2021 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 105.1 | 105.7 | 105 | |||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ (0.4) | |||||||||
Cumulative Number of Reported Claims | claim | 58,080 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 105.4 | 105.8 | 97.3 | |||||||
Auto physical damage | 2022 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 125.5 | 125.7 | ||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.9 | |||||||||
Cumulative Number of Reported Claims | claim | 59,353 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 124.3 | 114.6 | ||||||||
Auto physical damage | 2023 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 132.4 | |||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ (6) | |||||||||
Cumulative Number of Reported Claims | claim | 58,167 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 122 | |||||||||
Specialty health | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 185 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 174.1 | |||||||||
Outstanding prior to 2013 | 0 | |||||||||
Prior years paid | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 10.9 | |||||||||
Specialty health | 2014 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 56 | 56 | 56 | 56 | 56 | 56 | 56 | 55.9 | 56.3 | 59.6 |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 337,987 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 56 | 56 | 56 | 56 | 56 | 55.9 | 55.7 | 55.4 | 54.9 | 43.4 |
Specialty health | 2015 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 30.4 | 30.4 | 30.4 | 30.4 | 30.3 | 30.3 | 30.3 | 30.9 | 33.3 | |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 183,433 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 30.4 | 30.4 | 30.4 | 30.4 | 30.3 | 30.3 | 30.3 | 30.4 | 24.9 | |
Specialty health | 2016 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 11.1 | 11.1 | 11.1 | 11.1 | 11.1 | 11.1 | 11.2 | 12.5 | ||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 67,274 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 11.1 | 11.1 | 11.1 | 11.1 | 11.1 | 11.1 | 11 | 5.5 | ||
Specialty health | 2017 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 9.6 | 9.6 | 9.6 | 9.6 | 9.6 | 9.7 | 10.6 | |||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 63,492 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 9.6 | 9.6 | 9.6 | 9.6 | 9.6 | 9.4 | 7.3 | |||
Specialty health | 2018 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 12.6 | 12.6 | 12.7 | 13 | 13.2 | 12.9 | ||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 95,218 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 12.6 | 12.6 | 12.6 | 12.5 | 12.1 | 8.8 | ||||
Specialty health | 2019 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 9.5 | 9.5 | 9.6 | 9.5 | 10.6 | |||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 72,754 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 9.5 | 9.5 | 9.5 | 9.3 | 7.5 | |||||
Specialty health | 2020 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 5.7 | 5.7 | 5.8 | 6.8 | ||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 43,609 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 5.7 | 5.7 | 5.6 | 4.2 | ||||||
Specialty health | 2021 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 16.1 | 17.7 | 22.8 | |||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 2.4 | |||||||||
Cumulative Number of Reported Claims | claim | 72,407 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 13.7 | 12.9 | 2.9 | |||||||
Specialty health | 2022 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 18 | 22.6 | ||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 1.3 | |||||||||
Cumulative Number of Reported Claims | claim | 120,965 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 16.7 | 10.5 | ||||||||
Specialty health | 2023 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 16 | |||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 7.1 | |||||||||
Cumulative Number of Reported Claims | claim | 79,654 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 8.8 | |||||||||
Group disability | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 280.8 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 206.6 | |||||||||
Outstanding prior to 2013 | 9 | |||||||||
Prior years paid | 100.3 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 83.2 | |||||||||
Effect of discounting | (14) | |||||||||
Discounted net reserves | 69.2 | |||||||||
Group disability | 2014 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 14.5 | 14.6 | 14.3 | 14.7 | 14.5 | 14.3 | 14.4 | 14.8 | 13.3 | 16.3 |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 2,863 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 12.9 | 12.7 | 12.4 | 12.1 | 11.7 | 11.1 | 10.6 | 9.9 | 8.5 | $ 3.7 |
Group disability | 2015 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 14.5 | 14.7 | 15.2 | 15.2 | 14.6 | 14.7 | 16.6 | 19.2 | 25.3 | |
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 3,347 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 19.1 | 18.9 | 18.6 | 18.1 | 17.6 | 17.2 | 16.6 | 14 | $ 6.8 | |
Group disability | 2016 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 28.1 | 28.1 | 26.8 | 26.3 | 26 | 27.4 | 28.6 | 28.5 | ||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.7 | |||||||||
Cumulative Number of Reported Claims | claim | 3,618 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 22.9 | 22.4 | 21.8 | 21.1 | 20.3 | 19.3 | 16.4 | $ 8.3 | ||
Group disability | 2017 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 23.1 | 24 | 23.3 | 22.4 | 22.9 | 26 | 29.9 | |||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.1 | |||||||||
Cumulative Number of Reported Claims | claim | 3,904 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 19.7 | 19.4 | 18.9 | 18.3 | 17.9 | 16.1 | $ 8.5 | |||
Group disability | 2018 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 23.6 | 23.3 | 22.7 | 23.2 | 26.6 | 29.8 | ||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.3 | |||||||||
Cumulative Number of Reported Claims | claim | 4,171 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 20.1 | 19.6 | 18.9 | 18 | 16.1 | $ 8.4 | ||||
Group disability | 2019 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 30.2 | 29.9 | 30.2 | 33.5 | 34.5 | |||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.5 | |||||||||
Cumulative Number of Reported Claims | claim | 4,549 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 25.2 | 24.7 | 24.3 | 22.8 | $ 11.8 | |||||
Group disability | 2020 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 33.2 | 34.1 | 34.3 | 36.7 | ||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0.6 | |||||||||
Cumulative Number of Reported Claims | claim | 4,343 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 26.4 | 25.5 | 22.7 | $ 12.4 | ||||||
Group disability | 2021 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 41.3 | 41.3 | 37.8 | |||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 2 | |||||||||
Cumulative Number of Reported Claims | claim | 5,109 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 26.7 | 24 | $ 11.8 | |||||||
Group disability | 2022 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 32 | 39.2 | ||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ (0.5) | |||||||||
Cumulative Number of Reported Claims | claim | 4,349 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 21.4 | $ 11.7 | ||||||||
Group disability | 2023 | ||||||||||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 40.3 | |||||||||
Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 13.2 | |||||||||
Cumulative Number of Reported Claims | claim | 3,510 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | $ 12.2 |
Short-Duration Insurance Cont_7
Short-Duration Insurance Contracts - Reconciliation of Net Incurred and Paid Claims (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Gross reserves, end of year | $ 581.7 | $ 564 | [1] |
Property & Casualty and Group Benefits | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 390.4 | 360.5 | |
Reinsurance recoverable, including reinsurance premium paid | 138.9 | 139 | |
Unallocated claims adjustment expenses | 11.3 | 21 | |
Total other than short duration and unallocated claims adjustment expenses | 52.4 | 64.5 | |
Gross reserves, end of year | 581.7 | 564 | |
Property & Casualty and Group Benefits | Homeowners | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 73.4 | 61 | |
Reinsurance recoverable (payable), including reinsurance premium paid | 2.2 | (4.4) | |
Property & Casualty and Group Benefits | Auto liability | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 200.9 | 192.5 | |
Reinsurance recoverable, including reinsurance premium paid | 96.6 | 97.6 | |
Property & Casualty and Group Benefits | Auto physical damage | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 11 | 10.6 | |
Property & Casualty and Group Benefits | Specialty health | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 10.9 | 16.9 | |
Reinsurance recoverable, including reinsurance premium paid | 0.2 | 0.2 | |
Property & Casualty and Group Benefits | Group disability | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 83.2 | 69 | |
Reinsurance recoverable, including reinsurance premium paid | 25 | 25.6 | |
Property & Casualty and Group Benefits | Other than short duration lines | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 11 | 10.5 | |
Reinsurance recoverable, including reinsurance premium paid | 14.9 | 20 | |
Property & Casualty and Group Benefits | Insurance lines other than short duration | |||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |||
Insurance lines other than short duration | $ 41.1 | $ 43.5 | |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Contr_3
Long-Duration Insurance Contracts - Balances of and Changes in the LFPB (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | $ 1,761.8 | $ 1,718 | [1] | ||
Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | 0 | ||||
Whole Life | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | 215.1 | 183 | $ 176.5 | ||
Beginning balance at original discount rate | 245.9 | 157.6 | 143.5 | ||
Beginning period (including reserves) | 260.7 | ||||
Beginning balance at original discount rate (including reserves) | 239.3 | ||||
Change in cash flow assumptions | 0 | 5.2 | $ 2.4 | ||
Actual variances from expected experience | 3.8 | 7.2 | 8.8 | ||
Adjusted balance | 249.7 | 251.7 | 154.7 | ||
Issuances | 10.8 | 12.5 | 13.3 | ||
Interest accruals | 7.2 | 6.7 | 6.2 | ||
Net premiums collected | (20.6) | (25) | (16.6) | ||
Ending balance at original discount rate | 247.1 | 245.9 | 157.6 | ||
Effect of changes in discount rate assumptions | (23.9) | (30.8) | 25.4 | ||
Ending balance | 223.2 | 215.1 | 183 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 493.6 | 500.7 | 507.1 | ||
Beginning balance (including reserves) | 660.4 | ||||
Beginning balance at original discount rate | 592.1 | 581.9 | 386.3 | 362.5 | |
Beginning balance at original discount rate (including reserves) | 566.1 | ||||
Changes in cash flow assumptions | (0.6) | 5.2 | 2.8 | ||
Actual variances from expected experience | 4 | 7.7 | 8.7 | ||
Adjusted balance | 585.3 | 579 | 374 | ||
Issuances | 10.7 | 12.4 | 13.3 | ||
Interest accruals | 19 | 18 | 17.1 | ||
Benefit payments | (22.9) | (27.5) | (18.1) | ||
Ending balance at original discount rate | 592.1 | 581.9 | 386.3 | ||
Effect of changes in discount rate assumptions | (70.1) | (88.3) | 114.4 | ||
Ending balance | 522 | 493.6 | 500.7 | ||
Ending balance (including reserves) | 660.4 | ||||
Liability for Future Policy Benefit, before Reinsurance | 298.8 | 278.4 | 317.7 | 330.6 | |
Less: Reinsurance recoverable | (64.3) | (63.1) | (0.5) | (0.1) | |
Less: Change in discount rate assumptions | (0.2) | ||||
Net liability for future policy benefits, after reinsurance recoverable | 234.5 | 215.3 | |||
Impact of flooring on net liability for future policy benefits | 0 | 1.1 | |||
Net liability for future policy benefits at September 30, 2023 | 234.5 | 216.4 | 317.2 | 330.3 | |
Whole Life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | 218.7 | ||||
Whole Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 111.5 | ||||
Whole Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0.4 | ||||
Whole Life | Change in cash flow assumptions, effect of decrease of the DPL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Whole Life | Adjustment for removal of related balances in AOCI | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Term Life | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | 234.7 | 253.1 | 244.1 | ||
Beginning balance at original discount rate | 265.4 | 221.1 | 200.8 | ||
Beginning period (including reserves) | 264.4 | ||||
Beginning balance at original discount rate (including reserves) | 235.4 | ||||
Change in cash flow assumptions | (16.8) | 18.7 | (4.5) | ||
Actual variances from expected experience | (2.7) | (4.2) | 6.9 | ||
Adjusted balance | 245.9 | 249.9 | 203.2 | ||
Issuances | 25.2 | 28 | 29.8 | ||
Interest accruals | 10.3 | 9 | 7.9 | ||
Net premiums collected | (24.8) | (21.5) | (19.8) | ||
Ending balance at original discount rate | 256.6 | 265.4 | 221.1 | ||
Effect of changes in discount rate assumptions | (16.6) | (30.7) | 32 | ||
Ending balance | 240 | 234.7 | 253.1 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 347 | 370.6 | 364.7 | ||
Beginning balance (including reserves) | 411.5 | ||||
Beginning balance at original discount rate | 405.4 | 401 | 319.5 | 294 | |
Beginning balance at original discount rate (including reserves) | 360 | ||||
Changes in cash flow assumptions | (16.7) | 21.5 | (4.8) | ||
Actual variances from expected experience | 1.3 | (4.7) | 7.2 | ||
Adjusted balance | 385.6 | 376.8 | 296.4 | ||
Issuances | 25.8 | 28.3 | 29.8 | ||
Interest accruals | 15.2 | 14.4 | 12 | ||
Benefit payments | (21.2) | (18.5) | (18.7) | ||
Ending balance at original discount rate | 405.4 | 401 | 319.5 | ||
Effect of changes in discount rate assumptions | (35.3) | (54) | 51.1 | ||
Ending balance | 370.1 | 347 | 370.6 | ||
Ending balance (including reserves) | 411.5 | ||||
Liability for Future Policy Benefit, before Reinsurance | 130.2 | 112.2 | 117.6 | 120.5 | |
Less: Reinsurance recoverable | (19.1) | (15.3) | (5.5) | (5.4) | |
Less: Change in discount rate assumptions | (0.9) | ||||
Net liability for future policy benefits, after reinsurance recoverable | 111.1 | 96.9 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0.2 | |||
Net liability for future policy benefits at September 30, 2023 | 111.1 | 97.1 | 112.1 | 114.2 | |
Term Life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | 93.2 | ||||
Term Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 27.3 | ||||
Term Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Term Life | Change in cash flow assumptions, effect of decrease of the DPL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Term Life | Adjustment for removal of related balances in AOCI | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Experience life | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | 68.3 | 74.6 | 78 | ||
Beginning balance at original discount rate | 65.5 | 55.8 | 55.2 | ||
Beginning period (including reserves) | 74.6 | ||||
Beginning balance at original discount rate (including reserves) | 55.9 | ||||
Change in cash flow assumptions | 3.7 | 9.1 | (3.3) | ||
Actual variances from expected experience | 0.7 | 3 | 6.3 | ||
Adjusted balance | 69.9 | 68 | 58.2 | ||
Issuances | 0 | 0 | 0 | ||
Interest accruals | 3.7 | 3.3 | 3.2 | ||
Net premiums collected | (6.6) | (5.8) | (5.6) | ||
Ending balance at original discount rate | 67 | 65.5 | 55.8 | ||
Effect of changes in discount rate assumptions | 4.7 | 2.8 | 18.8 | ||
Ending balance | 71.7 | 68.3 | 74.6 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 867.5 | 1,172.7 | 1,269.3 | ||
Beginning balance (including reserves) | 1,172.7 | ||||
Beginning balance at original discount rate | 797.5 | 805.2 | 802.5 | 813.5 | |
Beginning balance at original discount rate (including reserves) | 802.6 | ||||
Changes in cash flow assumptions | 5 | 11 | (3.6) | ||
Actual variances from expected experience | 1.1 | 3.6 | 6.6 | ||
Adjusted balance | 811.3 | 817.2 | 816.5 | ||
Issuances | 0 | 0 | 0 | ||
Interest accruals | 47.4 | 47.4 | 47.9 | ||
Benefit payments | (61.2) | (59.4) | (61.9) | ||
Ending balance at original discount rate | 797.5 | 805.2 | 802.5 | ||
Effect of changes in discount rate assumptions | 85.5 | 62.3 | 370.2 | ||
Ending balance | 883 | 867.5 | 1,172.7 | ||
Ending balance (including reserves) | 1,172.7 | ||||
Liability for Future Policy Benefit, before Reinsurance | 811.3 | 799.3 | 1,098.1 | 1,191.3 | |
Less: Reinsurance recoverable | (1) | (0.8) | (1.1) | (1.3) | |
Less: Change in discount rate assumptions | (0.7) | ||||
Net liability for future policy benefits, after reinsurance recoverable | 810.3 | 798.5 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | |||
Net liability for future policy benefits at September 30, 2023 | 810.3 | 798.5 | 1,097 | 1,189.3 | |
Experience life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | 758.3 | ||||
Experience life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 433 | ||||
Experience life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Experience life | Change in cash flow assumptions, effect of decrease of the DPL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Experience life | Adjustment for removal of related balances in AOCI | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Limited-pay whole life | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | 29.7 | 29.7 | 25.4 | ||
Beginning balance at original discount rate | 32.4 | 27.2 | 22 | ||
Beginning period (including reserves) | 29.7 | ||||
Beginning balance at original discount rate (including reserves) | 27.2 | ||||
Change in cash flow assumptions | (0.2) | 2 | 0 | ||
Actual variances from expected experience | 1 | 1.6 | 1 | ||
Adjusted balance | 33.2 | 30.8 | 23 | ||
Issuances | 4.3 | 6.3 | 10.2 | ||
Interest accruals | 1.2 | 1.1 | 0.8 | ||
Net premiums collected | (4.8) | (5.8) | (6.8) | ||
Ending balance at original discount rate | 33.9 | 32.4 | 27.2 | ||
Effect of changes in discount rate assumptions | (1.7) | (2.7) | 2.5 | ||
Ending balance | 32.2 | 29.7 | 29.7 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 79.4 | 102.9 | 95 | ||
Beginning balance (including reserves) | 102.9 | ||||
Beginning balance at original discount rate | 105.6 | 98.6 | 86.6 | 73.4 | |
Beginning balance at original discount rate (including reserves) | 86.6 | ||||
Changes in cash flow assumptions | (0.2) | 2 | 0 | ||
Actual variances from expected experience | 1 | 1.4 | 1.1 | ||
Adjusted balance | 99.4 | 90 | 74.5 | ||
Issuances | 4.3 | 6.4 | 10.2 | ||
Interest accruals | 3.9 | 3.4 | 2.9 | ||
Benefit payments | (2) | (1.2) | (1) | ||
Ending balance at original discount rate | 105.6 | 98.6 | 86.6 | ||
Effect of changes in discount rate assumptions | (16) | (19.2) | 16.3 | ||
Ending balance | 89.6 | 79.4 | 102.9 | ||
Ending balance (including reserves) | 102.9 | ||||
Liability for Future Policy Benefit, before Reinsurance | 57.4 | 49.6 | 73.2 | 69.5 | |
Less: Reinsurance recoverable | (1.2) | 0 | (0.2) | (0.1) | |
Less: Change in discount rate assumptions | (0.1) | ||||
Net liability for future policy benefits, after reinsurance recoverable | 56.2 | 49.6 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | |||
Net liability for future policy benefits at September 30, 2023 | 56.2 | 49.6 | 73 | 69.3 | |
Limited-pay whole life | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | 51.3 | ||||
Limited-pay whole life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 18.2 | ||||
Limited-pay whole life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Limited-pay whole life | Change in cash flow assumptions, effect of decrease of the DPL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Limited-pay whole life | Adjustment for removal of related balances in AOCI | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Supplemental health | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | 167.4 | 221.5 | 233 | ||
Beginning balance at original discount rate | 205.1 | 217.5 | 218.2 | ||
Beginning period (including reserves) | 226.7 | ||||
Beginning balance at original discount rate (including reserves) | 223.1 | ||||
Change in cash flow assumptions | 6.5 | 12.2 | (1.8) | ||
Actual variances from expected experience | (1.6) | (25.3) | 6.3 | ||
Adjusted balance | 210 | 210 | 222.7 | ||
Issuances | 19.4 | 12 | 13 | ||
Interest accruals | 6 | 5.9 | 5.9 | ||
Net premiums collected | (22) | (22.8) | (24.1) | ||
Ending balance at original discount rate | 213.4 | 205.1 | 217.5 | ||
Effect of changes in discount rate assumptions | (31.4) | (37.7) | 4 | ||
Ending balance | 182 | 167.4 | 221.5 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 431.7 | 580.6 | 626.9 | ||
Beginning balance (including reserves) | 590.6 | ||||
Beginning balance at original discount rate | 517.9 | 537.1 | 572.6 | 589.1 | |
Beginning balance at original discount rate (including reserves) | 584.2 | ||||
Changes in cash flow assumptions | 8.9 | 13.8 | (3) | ||
Actual variances from expected experience | (2.4) | (30) | 6.2 | ||
Adjusted balance | 543.6 | 568 | 592.3 | ||
Issuances | 19.4 | 12 | 13 | ||
Interest accruals | 14.4 | 15 | 15.7 | ||
Benefit payments | (59.5) | (57.9) | (48.4) | ||
Ending balance at original discount rate | 517.9 | 537.1 | 572.6 | ||
Effect of changes in discount rate assumptions | (90.3) | (105.4) | 8 | ||
Ending balance | 427.6 | 431.7 | 580.6 | ||
Ending balance (including reserves) | 590.6 | ||||
Liability for Future Policy Benefit, before Reinsurance | 245.6 | 264.4 | 359.1 | 415.5 | |
Less: Reinsurance recoverable | (4) | (3.4) | 0 | 0 | |
Less: Change in discount rate assumptions | 0 | ||||
Net liability for future policy benefits, after reinsurance recoverable | 241.6 | 261 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | |||
Net liability for future policy benefits at September 30, 2023 | 241.6 | 261 | 359.1 | 415.5 | |
Supplemental health | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | 392.5 | ||||
Supplemental health | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 23 | ||||
Supplemental health | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Supplemental health | Change in cash flow assumptions, effect of decrease of the DPL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Supplemental health | Adjustment for removal of related balances in AOCI | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
Cancer | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at September 30, 2023 | 92.7 | 101.8 | 140.8 | 163.5 | |
Accident | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at September 30, 2023 | 21.4 | 21.8 | 28.7 | 31.2 | |
Disability | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at September 30, 2023 | 23.5 | 23.1 | 29.3 | 32 | |
Other | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Net liability for future policy benefits at September 30, 2023 | 104 | 114.3 | 160.3 | 188.8 | |
SPIA (life contingent) | |||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | ||
Beginning balance at original discount rate | 0 | 0 | 0 | ||
Beginning period (including reserves) | 0 | ||||
Beginning balance at original discount rate (including reserves) | 0 | ||||
Change in cash flow assumptions | 0 | 0 | 0 | ||
Actual variances from expected experience | 0 | 0 | 0 | ||
Adjusted balance | 0 | 0 | 0 | ||
Issuances | 5.6 | 5.3 | 3.7 | ||
Interest accruals | 0 | 0 | 0 | ||
Net premiums collected | (5.6) | (5.3) | (3.7) | ||
Ending balance at original discount rate | 0 | 0 | 0 | ||
Effect of changes in discount rate assumptions | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Beginning balance | 103.3 | 124.7 | 136.5 | ||
Beginning balance (including reserves) | 129.1 | ||||
Beginning balance at original discount rate | 111.4 | 113.4 | 111.6 | 115.9 | |
Beginning balance at original discount rate (including reserves) | 115.7 | ||||
Changes in cash flow assumptions | 0 | 0 | 0 | ||
Actual variances from expected experience | (0.8) | 0.4 | (0.4) | ||
Adjusted balance | 112.6 | 116.1 | 115.5 | ||
Issuances | 6.3 | 5.3 | 3.7 | ||
Interest accruals | 4.4 | 4.3 | 4.5 | ||
Benefit payments | (11.9) | (12.3) | (12.1) | ||
Ending balance at original discount rate | 111.4 | 113.4 | 111.6 | ||
Effect of changes in discount rate assumptions | (7.2) | (10.1) | 13.1 | ||
Ending balance | 104.2 | 103.3 | 124.7 | ||
Ending balance (including reserves) | 129.1 | ||||
Liability for Future Policy Benefit, before Reinsurance | 104.2 | 103.3 | 124.7 | 136.5 | |
Less: Reinsurance recoverable | (3.6) | (3.2) | 0 | 0 | |
Less: Change in discount rate assumptions | 0 | ||||
Net liability for future policy benefits, after reinsurance recoverable | 100.6 | 100.1 | |||
Impact of flooring on net liability for future policy benefits | 0 | 0 | |||
Net liability for future policy benefits at September 30, 2023 | $ 100.6 | $ 100.1 | $ 124.7 | 136.5 | |
SPIA (life contingent) | Previously Reported | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Liability for Future Policy Benefit, before Reinsurance | 115.9 | ||||
SPIA (life contingent) | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 20.6 | ||||
SPIA (life contingent) | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
SPIA (life contingent) | Change in cash flow assumptions, effect of decrease of the DPL | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | 0 | ||||
SPIA (life contingent) | Adjustment for removal of related balances in AOCI | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||||
Changes in cash flow assumptions | $ 0 | ||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Contr_4
Long-Duration Insurance Contracts - Reconciliation of LFPB to Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | $ 1,761.8 | $ 1,718 | [1] | ||
Whole life | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 298.8 | 279.5 | |||
Term life | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 130.2 | 112.4 | |||
Experience life | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 811.3 | 799.3 | $ 1,098.1 | $ 1,191.3 | |
Limited-pay whole life | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 57.4 | 49.6 | 73.2 | 69.5 | |
Supplemental health | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 245.6 | 264.4 | 359.1 | 415.5 | |
SPIA (life contingent) | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 104.2 | 103.3 | $ 124.7 | $ 136.5 | |
Limited-pay whole life DPL | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 4.1 | 3.2 | |||
SPIA (life contingent) DPL | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | 1.3 | 0.8 | |||
Reconciling items | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Future Policy Benefit, before Reinsurance | $ 108.9 | $ 105.5 | |||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Contr_5
Long-Duration Insurance Contracts - Amounts Recognized in the Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | $ 239 | $ 236.8 |
Interest expense | 75.7 | 75.8 |
Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 28.1 | 25.9 |
Interest expense | 11.8 | 11.3 |
Term Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 45.2 | 42.4 |
Interest expense | 4.8 | 4.4 |
Experience life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 32.1 | 33.5 |
Interest expense | 43.7 | 44.2 |
Limited-pay whole life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 7.2 | 8.1 |
Interest expense | 2.6 | 2.4 |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 120.3 | 121.2 |
Interest expense | 8.4 | 9.1 |
SPIA (life contingent) | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Gross premiums or assessments | 6.1 | 5.7 |
Interest expense | $ 4.4 | $ 4.4 |
Long-Duration Insurance Contr_6
Long-Duration Insurance Contracts - Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | $ 478.8 | $ 469 |
Expected future benefits and expenses, undiscounted | 1,152.8 | 1,121.4 |
Expected future gross premiums, discounted | 325 | 322.5 |
Expected future benefits and expenses, discounted | 592.1 | 580.4 |
Term Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 689 | 739.3 |
Expected future benefits and expenses, undiscounted | 682.7 | 678 |
Expected future gross premiums, discounted | 449.4 | 464.2 |
Expected future benefits and expenses, discounted | 405.4 | 401 |
Experience life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 530 | 569.6 |
Expected future benefits and expenses, undiscounted | 1,703.1 | 1,755.4 |
Expected future gross premiums, discounted | 296.1 | 315.5 |
Expected future benefits and expenses, discounted | 797.5 | 805.2 |
Limited-pay whole life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 64.7 | 60.8 |
Expected future benefits and expenses, undiscounted | 244.9 | 226.8 |
Expected future gross premiums, discounted | 49.1 | 46.5 |
Expected future benefits and expenses, discounted | 105.6 | 98.6 |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 1,624.1 | 1,640.5 |
Expected future benefits and expenses, undiscounted | 719.4 | 730.7 |
Expected future gross premiums, discounted | 1,192.5 | 1,214.9 |
Expected future benefits and expenses, discounted | 517.9 | 537.1 |
SPIA (life contingent) | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Expected future gross premiums, undiscounted | 0 | 0 |
Expected future benefits and expenses, undiscounted | 156.1 | 157.7 |
Expected future gross premiums, discounted | 0 | 0 |
Expected future benefits and expenses, discounted | $ 111.4 | $ 113.4 |
Long-Duration Insurance Contr_7
Long-Duration Insurance Contracts - Actual and Expected Experience of Mortality Rate and Lapse Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.70% | 0.70% |
Mortality, expected experience | 0.70% | 0.70% |
Lapse rate, actual experience | 3.40% | 3.20% |
Lapse rate, expected experience | 4.80% | 5.90% |
Experience life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 1.60% | 1.60% |
Mortality, expected experience | 1.60% | 1.40% |
Lapse rate, actual experience | 3.20% | 3.30% |
Lapse rate, expected experience | 3.10% | 3.20% |
Limited-pay whole life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.20% | 0.30% |
Mortality, expected experience | 0.30% | 0.20% |
Lapse rate, actual experience | 4.20% | 3.80% |
Lapse rate, expected experience | 5.40% | 7.60% |
Term Life | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.70% | 0.30% |
Mortality, expected experience | 2.30% | 1% |
Lapse rate, actual experience | 13% | 58.10% |
Lapse rate, expected experience | 36.80% | 9.80% |
Term Life | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Mortality, actual experience | 0.10% | 0.10% |
Mortality, expected experience | 0.10% | 0.10% |
Lapse rate, actual experience | 5.30% | 5.70% |
Lapse rate, expected experience | 5.80% | 6.60% |
Long-Duration Insurance Contr_8
Long-Duration Insurance Contracts - Weighted-Average Durations of LFPB (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Whole Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 18 years | 18 years 3 months 18 days |
Term Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 16 years 8 months 12 days | 16 years 9 months 18 days |
Experience life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 10 years 3 months 18 days | 10 years 7 months 6 days |
Limited-pay whole life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 22 years 1 month 6 days | 22 years 10 months 24 days |
Supplemental health | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 10 years 8 months 12 days | 10 years 1 month 6 days |
SPIA (life contingent) | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Weighted-average duration | 7 years 7 months 6 days | 7 years 8 months 12 days |
Long-Duration Insurance Contr_9
Long-Duration Insurance Contracts - Discount Rates for LFPB (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Whole Life | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 4.40% | 4.70% |
Whole Life | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.90% | 4.90% |
Current discount rate | 5% | 5.30% |
Term Life | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.20% | 4.10% |
Current discount rate | 4.90% | 5.30% |
Term Life | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.30% | 4.30% |
Current discount rate | 5% | 5.30% |
Experience life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 6.10% | 6.10% |
Current discount rate | 5% | 5.30% |
Limited-pay whole life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4% | 3.90% |
Current discount rate | 5.10% | 5.30% |
Supplemental health | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 5% | 5.30% |
Supplemental health | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 2.70% | 2.70% |
Current discount rate | 5.20% | 5.50% |
SPIA (life contingent) | Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 1.70% | 1.70% |
Current discount rate | 4.90% | 5.20% |
SPIA (life contingent) | Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Interest accretion rate | 4.10% | 4% |
Current discount rate | 4.90% | 5.20% |
Long-Duration Insurance Cont_10
Long-Duration Insurance Contracts - Policyholder Account Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Policyholder Account Balance [Roll Forward] | ||||||
Beginning balance | [1] | $ 5,260.6 | ||||
Interest credited | 205.7 | $ 173.4 | [2] | $ 160 | [2] | |
Ending balance | 5,187 | 5,260.6 | [1] | |||
Indexed Universal Life | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Beginning balance | 47.6 | 39.1 | ||||
Premiums received | 13.6 | 11.8 | ||||
Surrenders and withdrawals | (1.1) | (1) | ||||
Benefit payments | 0 | 0 | ||||
Net transfers from (to) separate account | (0.6) | 0 | ||||
Interest credited | 1.5 | 0.8 | ||||
Other | (3.2) | (3.1) | ||||
Ending balance | $ 57.8 | $ 47.6 | 39.1 | |||
Weighted-average crediting rate | 2.80% | 1.90% | ||||
Net amount at risk | $ 0 | $ 0 | ||||
Cash surrender value | 40.5 | 30.9 | ||||
Experience life | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Beginning balance | 64.3 | 66.2 | ||||
Premiums received | (0.8) | (0.3) | ||||
Surrenders and withdrawals | (3.7) | (3) | ||||
Benefit payments | (1.7) | (1.8) | ||||
Net transfers from (to) separate account | 0 | 0 | ||||
Interest credited | 3.1 | 3.2 | ||||
Other | 0 | 0 | ||||
Ending balance | $ 61.2 | $ 64.3 | 66.2 | |||
Weighted-average crediting rate | 5% | 5% | ||||
Net amount at risk | $ 0 | $ 0 | ||||
Cash surrender value | 60.5 | 63.6 | ||||
Fixed Account Annuities | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Beginning balance | 4,591.1 | 4,532.7 | ||||
Premiums received | 236.3 | 209.4 | ||||
Surrenders and withdrawals | (391.8) | (281.5) | ||||
Benefit payments | (75.1) | (65.9) | ||||
Net transfers from (to) separate account | 23.7 | 40.5 | ||||
Interest credited | 162 | 156 | ||||
Other | 9.8 | (0.1) | ||||
Ending balance | $ 4,556 | $ 4,591.1 | 4,532.7 | |||
Weighted-average crediting rate | 3.60% | 3.50% | ||||
Net amount at risk | $ 35.9 | $ 83.9 | ||||
Cash surrender value | 4,507.5 | 4,535.2 | ||||
Fixed Indexed Account Annuities | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Beginning balance | 510.3 | 522.6 | ||||
Premiums received | 20.1 | 32.4 | ||||
Surrenders and withdrawals | (67) | (40.4) | ||||
Benefit payments | (3.1) | (4.1) | ||||
Net transfers from (to) separate account | (8.2) | (2.5) | ||||
Interest credited | 5.3 | 3.3 | ||||
Other | (8.4) | (1) | ||||
Ending balance | $ 449 | $ 510.3 | 522.6 | |||
Weighted-average crediting rate | 1.10% | 0.60% | ||||
Net amount at risk | $ 0 | $ 0 | ||||
Cash surrender value | 439.9 | 496.3 | ||||
SPIA (non-life contingent) | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Beginning balance | 34.4 | 37.7 | ||||
Premiums received | 3.4 | 2.4 | ||||
Surrenders and withdrawals | (0.4) | (0.5) | ||||
Benefit payments | (5.9) | (6.3) | ||||
Net transfers from (to) separate account | 0 | 0 | ||||
Interest credited | 1 | 1.1 | ||||
Other | 0.1 | 0 | ||||
Ending balance | $ 32.6 | $ 34.4 | $ 37.7 | |||
Weighted-average crediting rate | 3.10% | 3% | ||||
Net amount at risk | $ 0 | $ 0 | ||||
Cash surrender value | $ 32.3 | $ 34.1 | ||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Cont_11
Long-Duration Insurance Contracts - Reconciliation of Policyholder Account Balances to the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | $ 5,187 | $ 5,260.6 | [1] | |
Indexed Universal Life | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 57.8 | 47.6 | $ 39.1 | |
Experience life | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 61.2 | 64.3 | 66.2 | |
Fixed Account Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 4,556 | 4,591.1 | 4,532.7 | |
Fixed Indexed Account Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 449 | 510.3 | 522.6 | |
SPIA (non-life contingent) | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | 32.6 | 34.4 | $ 37.7 | |
Reconciling items | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholders' account balances | $ 30.4 | $ 12.9 | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Cont_12
Long-Duration Insurance Contracts - Account Balances by Guaranteed Minimum Interest Rates (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 5,187 | $ 5,260.6 | [1] |
Less than 2% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 886.1 | $ 943.6 | |
Less than 2% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | |
Equal to 2% but less than 3% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 382.7 | $ 280.6 | |
Equal to 2% but less than 3% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | |
Equal to 2% but less than 3% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | |
Equal to 3% but less than 4% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 609 | $ 668.2 | |
Equal to 3% but less than 4% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | |
Equal to 3% but less than 4% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% | |
Equal to 4% but less than 5% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 2,670.5 | $ 2,706.1 | |
Equal to 4% but less than 5% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 4% | 4% | |
Equal to 4% but less than 5% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 5% | 5% | |
5% or higher | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 86.9 | $ 91.7 | |
5% or higher | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 5% | 5% | |
Policyholder account balance with a guaranteed minimum crediting rate | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 4,635.2 | $ 4,690.2 | |
At Guaranteed Minimum | Less than 2% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 36.7 | 262.5 | |
At Guaranteed Minimum | Equal to 2% but less than 3% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 162.9 | 256.1 | |
At Guaranteed Minimum | Equal to 3% but less than 4% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 571.3 | 667.4 | |
At Guaranteed Minimum | Equal to 4% but less than 5% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 2,670.5 | 2,706.1 | |
At Guaranteed Minimum | 5% or higher | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 86.9 | 91.7 | |
At Guaranteed Minimum | Policyholder account balance with a guaranteed minimum crediting rate | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 3,528.3 | $ 3,983.8 | |
1-50 Basis Points Above | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 | |
1-50 Basis Points Above | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 | |
1-50 Basis Points Above | Less than 2% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 159.8 | $ 370.6 | |
1-50 Basis Points Above | Equal to 2% but less than 3% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 77.9 | 19.8 | |
1-50 Basis Points Above | Equal to 3% but less than 4% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 36.9 | 0.4 | |
1-50 Basis Points Above | Equal to 4% but less than 5% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0 | 0 | |
1-50 Basis Points Above | 5% or higher | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0 | 0 | |
1-50 Basis Points Above | Policyholder account balance with a guaranteed minimum crediting rate | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 274.6 | $ 390.8 | |
51-150 Basis Points Above | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 | |
51-150 Basis Points Above | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
51-150 Basis Points Above | Less than 2% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 489.4 | $ 214.4 | |
51-150 Basis Points Above | Equal to 2% but less than 3% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 65.8 | 4.7 | |
51-150 Basis Points Above | Equal to 3% but less than 4% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0.7 | 0.4 | |
51-150 Basis Points Above | Equal to 4% but less than 5% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0 | 0 | |
51-150 Basis Points Above | 5% or higher | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0 | 0 | |
51-150 Basis Points Above | Policyholder account balance with a guaranteed minimum crediting rate | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 555.9 | $ 219.5 | |
Greater Than 150 Basis Points Above | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Greater Than 150 Basis Points Above | Less than 2% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 200.2 | $ 96.1 | |
Greater Than 150 Basis Points Above | Equal to 2% but less than 3% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 76.1 | 0 | |
Greater Than 150 Basis Points Above | Equal to 3% but less than 4% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0 | 0 | |
Greater Than 150 Basis Points Above | Equal to 4% but less than 5% | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0 | 0 | |
Greater Than 150 Basis Points Above | 5% or higher | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | 0 | 0 | |
Greater Than 150 Basis Points Above | Policyholder account balance with a guaranteed minimum crediting rate | |||
Policyholder Account Balance [Line Items] | |||
Policyholders' account balances | $ 276.3 | $ 96.1 | |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Cont_13
Long-Duration Insurance Contracts - Separate Account Liability Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Separate Account, Liability [Roll Forward] | ||||
Balance, beginning of year | [1] | $ 2,792.3 | ||
Balance, end of period | 3,294.1 | $ 2,792.3 | [1] | |
Variable Account Annuities | ||||
Separate Account, Liability [Roll Forward] | ||||
Balance, beginning of year | 2,792.3 | 3,441 | ||
Deposits | 234.2 | 240.3 | ||
Withdrawals | (213.4) | (186.8) | ||
Net transfers | (15.5) | (38.1) | ||
Fees and charges | (37.6) | (36.8) | ||
Market appreciation (depreciation) | 541.5 | (619.7) | ||
Other | (7.4) | (7.6) | ||
Balance, end of period | $ 3,294.1 | $ 2,792.3 | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Cont_14
Long-Duration Insurance Contracts - Market Risk Benefits Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | |
Market Risk Benefit [Roll Forward] | |||
Balance, beginning of period | $ 0.3 | $ 4.8 | |
Balance, beginning of period, before effects of changes in the instrument-specific credit risk | 0 | 2 | |
Changes in market risk benefits | (4.5) | (2) | |
Balance, end of period | (4.5) | 0 | |
Effect of changes in the instrument-specific credit risk | 0.6 | 0.3 | |
Balance, end of period | (3.9) | 0.3 | |
Net amount at risk | $ 20.5 | $ 55.3 | $ 8.6 |
Weighted-average attained age of contract holders | 62 years | 61 years |
Long-Duration Insurance Cont_15
Long-Duration Insurance Contracts - Market Risk Benefits by Asset and Liability Balance (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Market Risk Benefit [Line Items] | ||||
Net | $ (3.9) | $ 0.3 | $ 4.8 | $ 8.6 |
Deferred variable annuities | ||||
Market Risk Benefit [Line Items] | ||||
(Asset) | (6.7) | (4.4) | ||
Liability | 2.8 | 4.7 | ||
Net | $ (3.9) | $ 0.3 |
Long-Duration Insurance Cont_16
Long-Duration Insurance Contracts - Deferred Policy Acquisition Costs, Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | [1] | $ 330.6 | ||||
Amortization expense | (101.2) | $ (88.2) | [2] | $ (90.6) | [2] | |
Balance, end of period | 336.3 | 330.6 | [1] | |||
Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 433.1 | |||||
Amortization expense | (98.7) | (94.7) | ||||
Balance, end of period | 433.1 | |||||
Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | (102.5) | |||||
Amortization expense | 10.5 | 4.1 | ||||
Balance, end of period | (102.5) | |||||
Whole Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 20.9 | 19.1 | 17.8 | |||
Capitalizations | 2.7 | 3 | 2.4 | |||
Amortization expense | (1.2) | (1.2) | (1.1) | |||
Experience adjustment | (0.1) | 0 | 0 | |||
Balance, end of period | 22.3 | 20.9 | 19.1 | |||
Whole Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 17.8 | |||||
Whole Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Term Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 30 | 27.5 | 25.6 | |||
Capitalizations | 5.8 | 5 | 4.2 | |||
Amortization expense | (3.1) | (2.5) | (2.3) | |||
Experience adjustment | (0.1) | 0 | 0 | |||
Balance, end of period | 32.6 | 30 | 27.5 | |||
Term Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 25.6 | |||||
Term Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Experience life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 5.8 | 6 | 6.2 | |||
Capitalizations | 0.3 | 0.2 | 0.2 | |||
Amortization expense | (0.4) | (0.4) | (0.4) | |||
Experience adjustment | 0 | 0 | 0 | |||
Balance, end of period | 5.7 | 5.8 | 6 | |||
Experience life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 2.6 | |||||
Experience life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 3.6 | |||||
Limited-pay whole life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 6.7 | 5.6 | 4.4 | |||
Capitalizations | 1.1 | 1.4 | 1.5 | |||
Amortization expense | (0.3) | (0.3) | (0.3) | |||
Experience adjustment | (0.1) | 0 | 0 | |||
Balance, end of period | 7.4 | 6.7 | 5.6 | |||
Limited-pay whole life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 4.4 | |||||
Limited-pay whole life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Indexed Universal Life | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 15.4 | 13.7 | 12.9 | |||
Capitalizations | 2.5 | 2.5 | 1.7 | |||
Amortization expense | (1) | (0.8) | (0.8) | |||
Experience adjustment | (0.1) | 0 | (0.1) | |||
Balance, end of period | 16.8 | 15.4 | 13.7 | |||
Indexed Universal Life | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 11.3 | |||||
Indexed Universal Life | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 1.6 | |||||
Supplemental health | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 6.2 | 4.9 | 4.3 | |||
Capitalizations | 2.9 | 1.8 | 1.1 | |||
Amortization expense | (0.6) | (0.5) | (0.5) | |||
Experience adjustment | (0.3) | 0 | 0 | |||
Balance, end of period | 8.2 | 6.2 | 4.9 | |||
Supplemental health | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 4.3 | |||||
Supplemental health | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Total Annuities | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 221.1 | 223.3 | 223.1 | |||
Capitalizations | 15 | 15.5 | 17.3 | |||
Amortization expense | (14.7) | (15.8) | (16) | |||
Experience adjustment | (7.4) | (1.9) | (1.1) | |||
Balance, end of period | $ 214 | $ 221.1 | 223.3 | |||
Total Annuities | Previously Reported | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | 137.7 | |||||
Total Annuities | Effect of the Adoption of ASU 2018-12 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Balance, beginning of period | $ 85.4 | |||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Cont_17
Long-Duration Insurance Contracts - Deferred Policy Acquisition Costs, Reconciliation to Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | $ 336.3 | $ 330.6 | [1] | ||
Whole Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 22.3 | 20.9 | $ 19.1 | $ 17.8 | |
Term Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 32.6 | 30 | 27.5 | 25.6 | |
Experience life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 5.7 | 5.8 | 6 | 6.2 | |
Limited-pay whole life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 7.4 | 6.7 | 5.6 | 4.4 | |
Indexed Universal Life | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 16.8 | 15.4 | 13.7 | 12.9 | |
Supplemental health | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 8.2 | 6.2 | 4.9 | 4.3 | |
Total Annuities | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | 214 | 221.1 | $ 223.3 | $ 223.1 | |
Reconciling items | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
Deferred policy acquisition costs | $ 29.3 | $ 24.5 | |||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Long-Duration Insurance Cont_18
Long-Duration Insurance Contracts - Deferred Sale Inducement Costs, Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Deferred Sales Inducements [Roll Forward] | ||
Balance, beginning of period | $ 15.9 | $ 17.3 |
Capitalizations | 0 | 0 |
Amortization expense | (1) | (1.2) |
Experience adjustment | (0.8) | (0.2) |
Balance, end of period | $ 14.1 | $ 15.9 |
Reinsurance and Catastrophes -
Reinsurance and Catastrophes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reinsurance Recoverable on Unpaid Insurance Reserves [Line Items] | ||||
Losses incurred for catastrophe claims, carrying amount | $ 97,600 | $ 80,000 | $ 78,200 | |
Reinsurance balances receivable | $ 424,200 | $ 462,500 | ||
Percentage of coverage for catastrophe losses above retention amount, layer one | 57% | |||
Coverage above retention per occurrence under layer one catastrophe reinsurance | $ 20,000 | |||
Retention base amount per occurrence under layer one | $ 30,000 | |||
Percentage of coverage for catastrophe losses above retention amount, layer two | 92% | |||
Coverage above retention per occurrence under layer two catastrophe reinsurance | $ 40,000 | |||
Retention base amount per occurrence under layer two | $ 50,000 | |||
Percentage of coverage for catastrophe losses above retention amount, layer three | 95% | |||
Coverage above retention per occurrence under layer three catastrophe reinsurance | $ 85,000 | |||
Retention base amount per occurrence under layer three | 90,000 | |||
Reinsured amount of each loss above retention in clash event | 20,000 | |||
Amount of maximum individual life insurance risk retained | $ 500 | |||
Percentage of life reinsured catastrophe risk in excess specified retention per occurrence amount | 100% | |||
Other accidental death and dismemberment risk, ceded, percent | 100% | |||
Employer sponsored products, gross assumed group disability and specialty health benefits retained, percent | 72.40% | |||
Individual life and annuity benefits, ceded, percent | 100% | |||
Forecast | ||||
Reinsurance Recoverable on Unpaid Insurance Reserves [Line Items] | ||||
Percentage of coverage for catastrophe losses above retention amount, layer one | 89% | |||
Coverage above retention per occurrence under layer one catastrophe reinsurance | $ 25,000 | |||
Retention base amount per occurrence under layer one | $ 35,000 | |||
Percentage of coverage for catastrophe losses above retention amount, layer two | 90% | |||
Coverage above retention per occurrence under layer two catastrophe reinsurance | $ 35,000 | |||
Retention base amount per occurrence under layer two | $ 60,000 | |||
Percentage of coverage for catastrophe losses above retention amount, layer three | 92% | |||
Coverage above retention per occurrence under layer three catastrophe reinsurance | $ 90,000 | |||
Retention base amount per occurrence under layer three | 95,000 | |||
Retention amount per occurrence related to catastrophe losses, layer one | $ 35,000 | |||
National Guardian Life Insurance Company NGL | ||||
Reinsurance Recoverable on Unpaid Insurance Reserves [Line Items] | ||||
Reinsurance balances receivable | $ 181,000 | |||
Reinsurance recoverable as a percentage of shareholders' equity, in excess | 10% | |||
Minimum | ||||
Reinsurance Recoverable on Unpaid Insurance Reserves [Line Items] | ||||
Liability coverages, Company reinsured each loss above a retention per occurrence | $ 5,000 | |||
Amount of group life policy insurance risk retained | 100 | |||
Amount life catastrophe risk retention per occurrence | 1,000 | |||
Maximum | ||||
Reinsurance Recoverable on Unpaid Insurance Reserves [Line Items] | ||||
Amount of group life policy insurance risk retained | 125 | |||
Amount life catastrophe risk retention per occurrence | $ 35,000 |
Reinsurance and Catastrophes _2
Reinsurance and Catastrophes - Total Amounts of Reinsurance Recoverables On Unpaid Insurance Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of reinsurance recoverable on unpaid insurance reserves | ||
Reinsurance balances receivable | $ 424.2 | $ 462.5 |
Reinsurance companies | ||
Summary of reinsurance recoverable on unpaid insurance reserves | ||
Reinsurance balances receivable | 7.4 | 3.1 |
State insurance facilities | ||
Summary of reinsurance recoverable on unpaid insurance reserves | ||
Reinsurance balances receivable | 96.6 | 97.7 |
Group benefits | ||
Summary of reinsurance recoverable on unpaid insurance reserves | ||
Reinsurance balances receivable | 306.2 | 352.4 |
Life and health | ||
Summary of reinsurance recoverable on unpaid insurance reserves | ||
Reinsurance balances receivable | $ 14 | $ 9.3 |
Reinsurance and Catastrophes _3
Reinsurance and Catastrophes - Effects of Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Gross Amount | |||||||||||||
Premiums written and contract deposits, Gross Amount | $ 1,583.6 | $ 1,499 | $ 1,373.6 | ||||||||||
Premiums and contract charges earned, Gross Amount | 1,097.7 | 1,046.7 | 912.4 | ||||||||||
Benefits, claims and settlement expenses, Gross Amount | 803.6 | 772.5 | 592.3 | ||||||||||
Ceded to Other Companies | |||||||||||||
Premiums written and contract deposits, Ceded to Other Companies | 67.9 | 62.9 | 23.1 | ||||||||||
Premiums and contract charges earned, Ceded to Other Companies | 76.3 | 72 | 33.3 | ||||||||||
Benefits, claims and settlement expenses, Ceded to Other Companies | 45.7 | 43.5 | 7.8 | ||||||||||
Assumed from Other Companies | |||||||||||||
Premiums written and contract deposits, Assumed from Other Companies | 36.9 | 53 | 9.4 | ||||||||||
Premiums and contract charges earned, Assumed from Other Companies | 35.7 | 53 | 9.7 | ||||||||||
Benefits, claims and settlement expenses, Assumed from Other Companies | 11.2 | 18 | 6.2 | ||||||||||
Net Amount | |||||||||||||
Premiums written and contract deposits, Net Amount | $ 358.2 | $ 372.7 | $ 359.9 | $ 346.2 | $ 314 | $ 346.2 | $ 334.2 | $ 304.4 | 1,552.6 | 1,489.1 | 1,359.9 | ||
Premiums and contract charges earned, Net Amount | $ 259.1 | $ 257.4 | $ 255.4 | $ 255.8 | $ 210.6 | $ 225.2 | $ 225.6 | $ 227.4 | 1,057.1 | 1,027.7 | 888.8 | ||
Benefits, claims and settlement expenses | $ 769.1 | $ 747 | [1] | $ 590.7 | [1] | ||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Deposit Asset on Reinsurance -
Deposit Asset on Reinsurance - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Effects of Reinsurance [Line Items] | |||||
Reinsurance block of in-force fixed and variable annuity business | $ 3,100 | ||||
Minimum crediting rating (percent) | 4.50% | ||||
Percentage of forced fixed annuities (percent) | 50% | ||||
Fixed annuity reserves reinsured on a coinsurance basis | $ 2,400 | ||||
Net investment income | 444.8 | $ 400.9 | [1] | $ 422.5 | [1] |
Separate account asset | 3,294.1 | 2,792.3 | [2] | ||
Separate account liability | 3,294.1 | 2,792.3 | [2] | ||
Reinsurance Contract Modified Coinsurance Basis | |||||
Effects of Reinsurance [Line Items] | |||||
Separate account asset | 700 | ||||
Separate account liability | 700 | ||||
Deposit Asset On Reinsurance | |||||
Effects of Reinsurance [Line Items] | |||||
Net investment income | $ 104.9 | $ 103.5 | $ 101.1 | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 | $ 2 | $ 0 | |
Impairment of infinite lived intangible assets | $ 0 | 0.3 | 0 | |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other expense - goodwill and intangible asset impairments | |||
Trade Names | ||||
Goodwill [Line Items] | ||||
Impairment of infinite lived intangible assets | $ 0 | $ 0.3 | $ 0 | |
Benefit Consultants Group Inc. | ||||
Goodwill [Line Items] | ||||
Intangible assets | 9.1 | |||
Benefit Consultants Group Inc. | Trade Names | ||||
Goodwill [Line Items] | ||||
Impairment of infinite lived intangible assets | 0.3 | |||
Benefit Consultants Group Inc. | Value of customer relationships | ||||
Goodwill [Line Items] | ||||
Impairment of finite lived intangible assets | 2.5 | |||
Benefit Consultants Group Inc. | Retirement | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 2 | |||
Benefits Consultants Group System Inc. | ||||
Goodwill [Line Items] | ||||
Intangible assets | 5 | |||
NTA | ||||
Goodwill [Line Items] | ||||
Intangible assets | 160.4 | |||
Madison National | ||||
Goodwill [Line Items] | ||||
Intangible assets | $ 56.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Goodwill [Roll Forward] | |||||
Goodwill at the beginning of the period | $ 89.9 | $ 77.1 | $ 77.1 | ||
Accumulated impairment losses at the beginning of the period | (35.6) | (33.6) | (33.6) | ||
Goodwill, net at the beginning of the period | 54.3 | [1] | 43.5 | 43.5 | |
Acquisitions | 0 | 12.8 | 0 | ||
Impairments | 0 | (2) | 0 | ||
Goodwill at the end of the period | 89.9 | 89.9 | 77.1 | ||
Accumulated impairment losses at the end of the period | (35.6) | (35.6) | (33.6) | ||
Goodwill, net at the end of the period | 54.3 | 54.3 | [1] | 43.5 | |
Property & Casualty | |||||
Goodwill [Roll Forward] | |||||
Goodwill at the beginning of the period | 9.5 | 9.5 | 9.5 | ||
Accumulated impairment losses at the beginning of the period | 0 | 0 | 0 | ||
Goodwill, net at the beginning of the period | 9.5 | 9.5 | 9.5 | ||
Acquisitions | 0 | 0 | 0 | ||
Impairments | 0 | 0 | 0 | ||
Goodwill at the end of the period | 9.5 | 9.5 | 9.5 | ||
Accumulated impairment losses at the end of the period | 0 | 0 | 0 | ||
Goodwill, net at the end of the period | 9.5 | 9.5 | 9.5 | ||
Life & Retirement | |||||
Goodwill [Roll Forward] | |||||
Goodwill at the beginning of the period | 48 | 48 | 48 | ||
Accumulated impairment losses at the beginning of the period | (35.6) | (33.6) | (33.6) | ||
Goodwill, net at the beginning of the period | 12.4 | 14.4 | 14.4 | ||
Acquisitions | 0 | 0 | 0 | ||
Impairments | 0 | (2) | 0 | ||
Goodwill at the end of the period | 48 | 48 | 48 | ||
Accumulated impairment losses at the end of the period | (35.6) | (35.6) | (33.6) | ||
Goodwill, net at the end of the period | 12.4 | 12.4 | 14.4 | ||
Supplemental & Group Benefits | |||||
Goodwill [Roll Forward] | |||||
Goodwill at the beginning of the period | 32.4 | 19.6 | 19.6 | ||
Accumulated impairment losses at the beginning of the period | 0 | 0 | 0 | ||
Goodwill, net at the beginning of the period | 32.4 | 19.6 | 19.6 | ||
Acquisitions | 0 | 12.8 | 0 | ||
Impairments | 0 | 0 | 0 | ||
Goodwill at the end of the period | 32.4 | 32.4 | 19.6 | ||
Accumulated impairment losses at the end of the period | 0 | 0 | 0 | ||
Goodwill, net at the end of the period | $ 32.4 | $ 32.4 | $ 19.6 | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Finite-Lived Intangible Assets (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 20 years |
At inception: | $ 231 |
Accumulated amortization and impairments: | (74.1) |
Total | $ 156.9 |
Value of business acquired | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 28 years |
At inception: | $ 100.1 |
Accumulated amortization and impairments: | (35.3) |
Total | $ 64.8 |
Value of distribution acquired | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 17 years |
At inception: | $ 54 |
Accumulated amortization and impairments: | $ (17.5) |
Value of agency relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 14 years |
At inception: | $ 17 |
Accumulated amortization and impairments: | $ (9.8) |
Value of customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 10 years |
At inception: | $ 59.9 |
Accumulated amortization and impairments: | $ (11.5) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 14.5 |
2025 | 14.3 |
2026 | 14.2 |
2027 | 14.1 |
2028 | 14.1 |
Thereafter | 85.7 |
Total | $ 156.9 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Summary of Indefinite-Lived Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 13.4 | $ 10.8 | $ 10.8 |
Impairments | 0 | (0.3) | 0 |
Acquisitions | 0 | 2.9 | 0 |
Ending balance | 13.4 | 13.4 | 10.8 |
Trade Names | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 7.6 | 7.9 | 7.9 |
Impairments | 0 | (0.3) | 0 |
Acquisitions | 0 | 0 | 0 |
Ending balance | 7.6 | 7.6 | 7.9 |
State Licenses | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 5.8 | 2.9 | 2.9 |
Impairments | 0 | 0 | 0 |
Acquisitions | 0 | 2.9 | 0 |
Ending balance | $ 5.8 | $ 5.8 | $ 2.9 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) | Dec. 31, 2023 | Sep. 15, 2023 | Dec. 31, 2022 | |
Short-term debt | ||||
Revolving Credit Facility | $ 0 | $ 249,000,000 | ||
Long-term debt | ||||
Long-term debt | 546,000,000 | 249,000,000 | [1] | |
Total | $ 546,000,000 | 498,000,000 | ||
Senior Notes | ||||
Long-term debt | ||||
Interest Rates | 4.50% | |||
Principal amount | $ 250,000,000 | |||
Senior Notes | 2023 Senior Notes | ||||
Long-term debt | ||||
Long-term debt | $ 296,700,000 | 0 | ||
Interest Rates | 7.25% | 7.25% | ||
Principal amount | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |
Unamortized discount | 500,000 | 0 | ||
Unamortized debt issuance costs | 2,800,000 | 0 | ||
Senior Notes | 4.50% Senior Notes | ||||
Long-term debt | ||||
Long-term debt | $ 249,300,000 | $ 249,000,000 | ||
Interest Rates | 4.50% | 4.50% | ||
Principal amount | $ 250,000,000 | $ 250,000,000 | ||
Unamortized discount | 200,000 | 200,000 | ||
Unamortized debt issuance costs | $ 500,000 | $ 800,000 | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 12 Months Ended | |||||||
Sep. 15, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 12, 2021 | Jul. 11, 2021 | |||
Debt Instrument [Line Items] | ||||||||
Principal repayment on Revolving Credit Facility | $ 249,000,000 | $ 0 | $ 0 | |||||
Principal borrowings on Revolving Credit Facility | $ 0 | $ 0 | [1] | $ 114,000,000 | [1] | |||
Purchase of FHLB activity-based common stock as percentage of borrowing, percentage, authorized | 15% | 25% | ||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 250,000,000 | |||||||
Stated rate | 4.50% | |||||||
Effective interest percentage | 4.53% | |||||||
Senior Notes | 2023 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||||
Stated rate | 7.25% | 7.25% | ||||||
Effective interest percentage | 7.29% | |||||||
Debt redemption price, percentage | 100% | |||||||
Debt redemption price, interest discounted at treasury yield margin | 0.45% | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 325,000,000 | $ 225,000,000 | ||||||
Commitment fee percent | 0.15% | |||||||
Line of Credit | SOFR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.15% | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal repayment on Revolving Credit Facility | $ 249,000,000 | |||||||
Principal borrowings on Revolving Credit Facility | $ 114,000,000 | |||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Income Taxes - Income Tax Asset
Income Taxes - Income Tax Assets and Liabilities Included in Other Assets and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income tax (asset) liability | ||
Current | $ (25.9) | $ (18.8) |
Deferred | $ 33.4 | $ 8.8 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Other comprehensive income - net unrealized losses on securities | $ 82.1 | $ 105.8 |
Unearned premium reserve reduction | 13.3 | 10.1 |
Compensation accruals | 9.3 | 8.4 |
Impaired securities | 2 | 2 |
Other comprehensive income - net funded status of benefit plans | 2 | 2.3 |
Discounting of unpaid claims and claim expense tax reserves | 2.7 | 2.8 |
Capital loss carryforward | 0.8 | 0 |
Net operating loss carryforward | 9.3 | 3.6 |
Intangibles | 1.4 | 0 |
Postretirement benefits other than pensions | 0.2 | 0.2 |
Total gross deferred tax assets | 123.1 | 135.2 |
Deferred tax liabilities | ||
Deferred policy acquisition costs | 45.9 | 48.5 |
Life insurance future policy benefit reserve | 46.4 | 42.4 |
Life insurance future policy benefit reserve (transitional rule) | 4.3 | 6.4 |
Discounting of unpaid claims and claim expense tax reserves (transitional rule) | 0.3 | 0.5 |
Investment related adjustments | 44.8 | 29.9 |
Other comprehensive income - net reserve remeasurements | 5.8 | 15.7 |
Other, net | 9 | 0.6 |
Total gross deferred tax liabilities | 156.5 | 144 |
Net deferred tax liability | $ 33.4 | $ 8.8 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Income Tax Disclosure [Abstract] | |||||
Current | $ 6.5 | $ (0.7) | $ 27.7 | ||
Deferred | 1.8 | (2.6) | 12 | ||
Total income tax expense (benefit) | $ 8.3 | $ (3.3) | [1] | $ 39.7 | [1] |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Income Tax Disclosure [Abstract] | |||||
Expected federal tax on income | $ 11.2 | $ 3.5 | $ 44.1 | ||
Add (deduct) tax effects of: | |||||
Tax-exempt interest | (2.7) | (3.3) | (3.9) | ||
Dividend received deduction | (1.3) | (3.2) | (2.2) | ||
Employee share-based compensation | 0.1 | (0.5) | (1.3) | ||
Contingent consideration | 0 | (0.3) | 0 | ||
Compensation deduction limitation | 0.8 | 0.7 | 1.5 | ||
Research and development reserve | (0.2) | (0.4) | (0.2) | ||
Prior year adjustments | 0.3 | 0.1 | 0.1 | ||
Other, net | 0.1 | 0.1 | 1.6 | ||
Total income tax expense (benefit) | $ 8.3 | $ (3.3) | [1] | $ 39.7 | [1] |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Shareholders' Equity and Shar_3
Shareholders' Equity and Share-Based Compensation - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2021 shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2012 | May 25, 2022 USD ($) | Dec. 31, 2021 $ / shares | Sep. 30, 2015 USD ($) | Dec. 31, 1996 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reacquired during period (in shares) | shares | 196,934 | 670,816 | ||||||
Percentage of outstanding shares reacquired | 0.50% | 1.60% | ||||||
Shares reacquired during period, value | $ | $ 6,500,000 | $ 24,000,000 | ||||||
Share price of treasury stock acquired during period (in usd per share) | $ / shares | $ 32.85 | $ 35.82 | ||||||
Accumulated shares purchased (in shares) | shares | 439,035 | |||||||
Average cost per share (in usd per share) | $ / shares | $ 34,490 | |||||||
Remaining authorized repurchase amount | $ | $ 34,900,000 | |||||||
Treasury stock (in shares) | shares | 25,911,087 | 25,714,153 | ||||||
Preferred stock, shares authorized (in shares) | shares | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Fungible share pool, grant of full value share conversion ratio | 2.5 | |||||||
Intrinsic value | $ / shares | 0 | |||||||
Weighted average exercise prices of vested and exercisable options (in usd per share) | $ / shares | 38.98 | $ 38.60 | $ 37.94 | |||||
Share price (in usd per share) | $ / shares | $ 32.70 | |||||||
Aggregate intrinsic value of vested options | $ | $ 400,000 | |||||||
Aggregate intrinsic value of options | $ | $ 400,000 | |||||||
Minimum | Employee stock option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Minimum | Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 10 years | |||||||
Maximum | Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
2022 program | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Authorized repurchase amount | $ | $ 50,000,000 | |||||||
2015 program | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Authorized repurchase amount | $ | $ 50,000,000 | |||||||
2010 program | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Amended increase in shares reserved for issuance (in shares) | shares | 2,500,000 | |||||||
Shares available for grant (in shares) | shares | 1,067,611 |
Shareholders' Equity and Shar_4
Shareholders' Equity and Share-Based Compensation - Outstanding Stock Units and Stock Options under Comprehensive Plan (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options (in shares) | 1,402,514 | 1,194,352 | |
Total (in shares) | 2,355,174 | 2,038,920 | 1,909,993 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
CSUs related to deferred compensation for Directors and Employees | 925,230 | 816,759 | 834,981 |
RSUs related to incentive compensation (in shares) | 925,230 | 816,759 | 834,981 |
Restricted stock units | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
CSUs related to deferred compensation for Directors and Employees | 14,458 | 15,372 | 26,313 |
RSUs related to incentive compensation (in shares) | 14,458 | 15,372 | 26,313 |
Restricted stock units | Employees Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
CSUs related to deferred compensation for Directors and Employees | 12,972 | 12,437 | 16,571 |
RSUs related to incentive compensation (in shares) | 12,972 | 12,437 | 16,571 |
Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options (in shares) | 1,402,514 | 1,194,352 | 1,032,128 |
Shareholders' Equity and Shar_5
Shareholders' Equity and Share-Based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Option Price per Share | |||
Weighted average option price per share, beginning balance (in usd per share) | $ 39.41 | ||
Weighted average option price per share, options granted (in usd per share) | 35.62 | ||
Weighted average option price per share, options vested (in usd per share) | 40.56 | ||
Weighted average option price per share, options exercised (in usd per share) | 28.88 | ||
Weighted average option price per share, options forfeited (in usd per share) | 0 | ||
Weighted average option price per share, options expired (in usd per share) | 0 | ||
Weighted average option price per share, ending balance (in usd per share) | $ 38.85 | $ 39.41 | |
Outstanding | |||
Options outstanding, beginning balance (in shares) | 1,194,352 | ||
Options outstanding, granted (in shares) | 209,028 | 162,224 | 183,272 |
Options outstanding, vested (in shares) | 0 | ||
Options outstanding, exercised (in shares) | (866) | ||
Options outstanding, forfeited (in shares) | 0 | ||
Options outstanding, expired (in shares) | 0 | ||
Options outstanding, ending balance (in shares) | 1,402,514 | 1,194,352 | |
Vested and Exercisable | |||
Options vested and exercisable, beginning balance (in shares) | 766,444 | ||
Options vested and exercisable, granted (in shares) | 0 | ||
Options vested and exercisable, vested (in shares) | 176,954 | ||
Options vested and exercisable, exercisable (in shares) | (866) | ||
Options vested and exercisable, forfeited (in shares) | 0 | ||
Options vested and exercisable, expired (in shares) | 0 | ||
Options vested and exercisable, ending balance (in shares) | 942,532 | 766,444 | |
Minimum | |||
Range of Option Prices per Share | |||
Range of option prices per share, beginning balance (in usd per share) | $ 28.88 | ||
Range of option prices per share, granted (in usd per share) | 32.13 | ||
Range of option prices per share, vested (in usd per share) | 38.99 | ||
Range of option prices per share, exercised (in usd per share) | 28.88 | ||
Range of option prices per share, ending balance (in usd per share) | 28.88 | $ 28.88 | |
Maximum | |||
Range of Option Prices per Share | |||
Range of option prices per share, beginning balance (in usd per share) | 42.95 | ||
Range of option prices per share, granted (in usd per share) | 35.98 | ||
Range of option prices per share, vested (in usd per share) | 41.83 | ||
Range of option prices per share, exercised (in usd per share) | 28.88 | ||
Range of option prices per share, ending balance (in usd per share) | $ 42.95 | $ 42.95 |
Shareholders' Equity and Shar_6
Shareholders' Equity and Share-Based Compensation - Stock Option Information by Ranges of Exercise Prices (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, options (in shares) | 1,402,514 | 1,194,352 | |
Total outstanding options, weighted average option price per share (in usd per share) | $ 38.85 | $ 39.41 | |
Total outstanding options, weighted average remaining term | 5 years 8 months 8 days | ||
Vested and exercisable options (in shares) | 942,532 | 766,444 | |
Vested and exercisable options, weighted average option price per share (in usd per share) | $ 38.98 | $ 38.60 | $ 37.94 |
Vested and exercisable options, weighted average remaining term | 4 years 5 months 8 days | ||
Range One | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, options (in shares) | 213,890 | ||
Total outstanding options, weighted average option price per share (in usd per share) | $ 30.94 | ||
Total outstanding options, weighted average remaining term | 2 years 3 months 21 days | ||
Vested and exercisable options (in shares) | 194,326 | ||
Vested and exercisable options, weighted average option price per share (in usd per share) | $ 30.82 | ||
Vested and exercisable options, weighted average remaining term | 1 year 7 months 6 days | ||
Range One | Minimum | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, weighted average option price per share (in usd per share) | $ 28.88 | ||
Range One | Maximum | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, weighted average option price per share (in usd per share) | $ 32.35 | ||
Range Two | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, options (in shares) | 388,544 | ||
Total outstanding options, weighted average option price per share (in usd per share) | $ 37.51 | ||
Total outstanding options, weighted average remaining term | 7 years 1 month 6 days | ||
Vested and exercisable options (in shares) | 199,080 | ||
Vested and exercisable options, weighted average option price per share (in usd per share) | $ 38.96 | ||
Vested and exercisable options, weighted average remaining term | 5 years 1 month 13 days | ||
Range Two | Minimum | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, weighted average option price per share (in usd per share) | $ 35.98 | ||
Range Two | Maximum | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, weighted average option price per share (in usd per share) | $ 38.99 | ||
Range Three | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, options (in shares) | 800,080 | ||
Total outstanding options, weighted average option price per share (in usd per share) | $ 41.62 | ||
Total outstanding options, weighted average remaining term | 5 years 10 months 28 days | ||
Vested and exercisable options (in shares) | 549,126 | ||
Vested and exercisable options, weighted average option price per share (in usd per share) | $ 41.87 | ||
Vested and exercisable options, weighted average remaining term | 5 years 2 months 8 days | ||
Range Three | Minimum | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, weighted average option price per share (in usd per share) | $ 40.10 | ||
Range Three | Maximum | |||
Summary of options outstanding segregated by ranges of exercise prices | |||
Total outstanding options, weighted average option price per share (in usd per share) | $ 42.95 |
Shareholders' Equity and Shar_7
Shareholders' Equity and Share-Based Compensation - Restricted Stock Activity (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Total Outstanding Units | |
Beginning balance, Total Outstanding, Units (in shares) | shares | 816,759 |
Granted, Total Outstanding Units (in shares) | shares | 286,648 |
Adjustment for performance achievement, Total Outstanding Units (in shares) | shares | 6,174 |
Vested, Total Outstanding Units (in shares) | shares | 0 |
Forfeited, Total Outstanding Units (in shares) | shares | (5,323) |
Distributed, Total Outstanding Units (in shares) | shares | (179,028) |
Ending balance, Total Outstanding, Units (in shares) | shares | 925,230 |
Outstanding Units, Weighted Average Grant Date Fair Value per Unit | |
Beginning balance, Total Outstanding, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | $ 36.58 |
Granted, Total Outstanding, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 35.78 |
Adjustment for performance achievement, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 44.49 |
Vested, Total Outstanding, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 0 |
Forfeited, Total Outstanding, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 42.25 |
Distributed, Total Outstanding, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 41.65 |
Ending balance, Total Outstanding, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | $ 35.43 |
Vested Units | |
Beginning balance, Vested, Units (in shares) | shares | 416,082 |
Granted, Vested, Units (in shares) | shares | 0 |
Adjustment for performance achievement, Units (in shares) | shares | 0 |
Vested, Vested, Units (in shares) | shares | 176,082 |
Forfeited, Vested, Units (in shares) | shares | 0 |
Distributed, Vested, Units (in shares) | shares | (179,028) |
Ending balance, Vested, Units (in shares) | shares | 413,136 |
Vested Units, Weighted Average Grant Date Fair Value per Unit | |
Beginning balance, Vested, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | $ 28.93 |
Granted, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 0 |
Adjustment for performance achievement, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 0 |
Vested, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 41.93 |
Forfeited, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 0 |
Distributed, Vested, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | 41.65 |
Ending balance, Vested, Weighted Average Grant Date Fair Value per Unit (in usd per share) | $ / shares | $ 29.04 |
Statutory Information and Div_3
Statutory Information and Dividend Restrictions -Reconciliations of Statutory Capital, Surplus and Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance [Abstract] | |||
Consolidated net income, statutory basis | $ 24.7 | $ 77 | $ 114.8 |
Consolidated capital and surplus, statutory basis | $ 1,043.6 | $ 1,024.5 | $ 955.1 |
Statutory Information and Div_4
Statutory Information and Dividend Restrictions - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Insurance [Abstract] | ||
Minimum statutory-basis capital and surplus | $ 135.3 | $ 123.3 |
Restricted net assets of HMEC's insurance subsidiaries | $ 29.2 | $ 28.6 |
Contingencies and Commitments (
Contingencies and Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remaining minimum amount committed | $ 502.6 | $ 704.2 |
Comprehensive Income (Loss) a_3
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) - Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [1],[2] | $ 170.4 | [1],[2] |
Effect of adopting ASU 2018-12 | 0 | 0 | [1] | (426.6) | [1] | ||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities: | |||||||||||||
Net unrealized investment gains (losses) on securities arising during the period | 133.9 | (1,042.6) | (122.8) | ||||||||||
Less: reclassification adjustment for net investment gains (losses) included in income before income tax | (20.3) | (29.1) | (7.7) | ||||||||||
Total, before tax | 154.2 | (1,013.5) | (115.1) | ||||||||||
Income tax expense (benefit) | 32.9 | (216.8) | (24.8) | ||||||||||
Total, net of tax | 121.3 | (796.7) | (90.3) | ||||||||||
Change in net reserve remeasurements attributable to discount rates: | |||||||||||||
Total, before tax | (47.2) | 567.6 | 141 | ||||||||||
Income tax expense (benefit) | (10.1) | 121.7 | 30.2 | ||||||||||
Total, net of tax | (37.1) | 445.9 | [1] | 110.8 | [1] | ||||||||
Change in net funded status of benefit plans: | |||||||||||||
Total, before tax | 1.5 | 1.8 | 1.2 | ||||||||||
Income tax expense (benefit) | 0.3 | 0.4 | 0.2 | ||||||||||
Total, net of tax | 1.2 | 1.4 | [1] | 1 | [1] | ||||||||
Total comprehensive income (loss) | $ 130.4 | $ (329.6) | [1] | $ (234.7) | [1] | ||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Comprehensive Income (Loss) a_4
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | [1] | $ 1,098.3 | $ 1,499 | |||
Other comprehensive income (loss) before reclassifications | 69.4 | (372.4) | $ 15.4 | |||
Amounts reclassified from AOCI | 16 | 23 | 6.1 | |||
Net current period other comprehensive income (loss) | 85.4 | (349.4) | [2] | (405.1) | [2] | |
Net current period other comprehensive income (loss) | 21.5 | |||||
Ending balance | 1,175.3 | 1,098.3 | [1] | 1,499 | [1] | |
Reclassification adjustment for net investment gains (losses) included in income before income tax | (20.3) | (29.1) | (7.7) | |||
Other tax expense (benefit) | (4.3) | (6.1) | (1.6) | |||
Total | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | [1] | (399.4) | (50) | 355.1 | ||
Ending balance | (314) | (399.4) | [1] | (50) | [1] | |
Total | Effect of adopting ASU 2018-12 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | [1] | (426.6) | ||||
Net unrealized investment gains (losses) on securities | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (449.6) | 347.1 | 366.3 | |||
Other comprehensive income (loss) before reclassifications | 105.3 | (819.7) | (96.4) | |||
Amounts reclassified from AOCI | 16 | 23 | 6.1 | |||
Net current period other comprehensive income (loss) | 121.3 | (796.7) | ||||
Net current period other comprehensive income (loss) | (90.3) | |||||
Ending balance | (328.3) | (449.6) | 347.1 | |||
Net unrealized investment gains (losses) on securities | Effect of adopting ASU 2018-12 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 71.1 | |||||
Net Reserve Remeasurements Attributable to Discount Rates | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 59 | (386.9) | 0 | |||
Other comprehensive income (loss) before reclassifications | (37.1) | 445.9 | 110.8 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Net current period other comprehensive income (loss) | (37.1) | 445.9 | ||||
Net current period other comprehensive income (loss) | 110.8 | |||||
Ending balance | 21.9 | 59 | (386.9) | |||
Net Reserve Remeasurements Attributable to Discount Rates | Effect of adopting ASU 2018-12 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (497.7) | |||||
Net Funded Status of Benefit Plans | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (8.8) | (10.2) | (11.2) | |||
Other comprehensive income (loss) before reclassifications | 1.2 | 1.4 | 1 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Net current period other comprehensive income (loss) | 1.2 | 1.4 | ||||
Net current period other comprehensive income (loss) | 1 | |||||
Ending balance | $ (7.6) | $ (8.8) | (10.2) | |||
Net Funded Status of Benefit Plans | Effect of adopting ASU 2018-12 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 0 | |||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Supplemental Consolidated Cas_3
Supplemental Consolidated Cash and Cash Flow Information - Summary of Cash and Restricted Cash (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | [2] | |||
Supplemental Cash Flow Elements [Abstract] | |||||||
Cash | $ 29 | $ 42.2 | $ 133 | ||||
Restricted cash | 0.7 | 0.6 | 0.7 | ||||
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows | 29.7 | 42.8 | [1],[2] | 133.7 | [2] | $ 22.3 | |
Interest | 30.1 | 18.2 | 13.5 | ||||
Income taxes | $ 14 | $ 8.6 | $ 23.7 | ||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 4 |
Number of reportable segments that represent major lines of business | 3 |
Segment Information - Summarize
Segment Information - Summarized Financial Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Summarized financial information for these segments | ||||||||||||||
Premiums and contract charges earned, Net Amount | $ 1,057.1 | $ 1,027.7 | [1] | $ 888.8 | [1] | |||||||||
Net investment income | 444.8 | 400.9 | [1] | 422.5 | [1] | |||||||||
Net income (loss) | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | 45 | 19.8 | [1],[2] | 170.4 | [1],[2] | |
Assets | 13,306.1 | [3] | 14,460.2 | 14,049.9 | 13,306.1 | [3] | 14,460.2 | |||||||
Intersegment eliminations | ||||||||||||||
Summarized financial information for these segments | ||||||||||||||
Net investment income | (2.2) | (2.1) | (2.3) | |||||||||||
Assets | (64.8) | (64.8) | (62.4) | (64.8) | (64.8) | |||||||||
Property & Casualty | Operating Segments | ||||||||||||||
Summarized financial information for these segments | ||||||||||||||
Premiums and contract charges earned, Net Amount | 645.6 | 608.2 | 617.4 | |||||||||||
Net investment income | 37.9 | 31.4 | 61.1 | |||||||||||
Net income (loss) | (35.5) | (44.4) | 57 | |||||||||||
Assets | 1,083.8 | 1,243.4 | 1,218.1 | 1,083.8 | 1,243.4 | |||||||||
Life & Retirement | Operating Segments | ||||||||||||||
Summarized financial information for these segments | ||||||||||||||
Premiums and contract charges earned, Net Amount | 151.7 | 144 | 143.4 | |||||||||||
Net investment income | 369.9 | 338.3 | 338.6 | |||||||||||
Net income (loss) | 71.5 | 63.8 | 89.1 | |||||||||||
Assets | 10,754.4 | 12,144.2 | 11,365 | 10,754.4 | 12,144.2 | |||||||||
Supplemental & Group Benefits | Operating Segments | ||||||||||||||
Summarized financial information for these segments | ||||||||||||||
Premiums and contract charges earned, Net Amount | 259.8 | 275.5 | 128 | |||||||||||
Net investment income | 38.9 | 33.3 | 25.2 | |||||||||||
Net income (loss) | 54.9 | 65.9 | 52.9 | |||||||||||
Assets | 1,359.3 | 855.6 | 1,338.8 | 1,359.3 | 855.6 | |||||||||
Corporate & Other | ||||||||||||||
Summarized financial information for these segments | ||||||||||||||
Net investment income | 0.3 | 0 | (0.1) | |||||||||||
Net income (loss) | (45.9) | (65.5) | (28.6) | |||||||||||
Assets | $ 173.4 | $ 281.8 | $ 190.4 | $ 173.4 | $ 281.8 | |||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Segment Information - Additiona
Segment Information - Additional Significant Financial Information by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Segment Reporting Information [Line Items] | |||||
DAC amortization expense | $ 101.2 | $ 88.2 | [1] | $ 90.6 | [1] |
Income tax expense (benefit) | 8.3 | (3.3) | [1] | 39.7 | [1] |
Property & Casualty | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
DAC amortization expense | 71.3 | 64.3 | 67.7 | ||
Income tax expense (benefit) | (9.8) | (13.8) | 13.2 | ||
Life & Retirement | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
DAC amortization expense | 28 | 23 | 22 | ||
Income tax expense (benefit) | 15.1 | 10.6 | 19.3 | ||
Supplemental & Group Benefits | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
DAC amortization expense | 1.9 | 0.9 | 0.9 | ||
Income tax expense (benefit) | 14.8 | 18.1 | 14.5 | ||
Corporate & Other | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Income tax expense (benefit) | $ (11.8) | $ (18.2) | $ (7.3) | ||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Prior Period Consolidated Fin_3
Prior Period Consolidated Financial Statements - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Assets | |||||||
Total investments | $ 6,830.5 | $ 6,587.6 | [1] | ||||
Cash | 29.7 | 42.8 | [1],[2] | $ 133.7 | [2] | $ 22.3 | [2] |
Deferred policy acquisition costs | 336.3 | 330.6 | [1] | ||||
Reinsurance balances receivable | 480.5 | 468 | [1] | ||||
Deposit asset on reinsurance | 2,496.6 | 2,516.6 | [1] | ||||
Intangible assets | 170.3 | 185.2 | [1] | ||||
Goodwill | 54.3 | 54.3 | [1] | 43.5 | 43.5 | ||
Other assets | 357.6 | 328.7 | [1] | ||||
Separate account asset | 3,294.1 | 2,792.3 | [1] | ||||
Total assets | 14,049.9 | 13,306.1 | [1] | 14,460.2 | |||
Policy liabilities | |||||||
Investment contract and policy reserves | 0 | ||||||
Future policy benefit reserves | 1,761.8 | 1,718 | [1] | ||||
Policyholders' account balances | 5,187 | 5,260.6 | [1] | ||||
Unpaid claims and claim expenses | 581.7 | 564 | [1] | ||||
Unearned premiums | 300.9 | 266.1 | [1] | ||||
Total policy liabilities | 7,808.7 | ||||||
Other policyholder funds | 916 | 809.3 | [1] | ||||
Other liabilities | 287.1 | 299.5 | [1] | ||||
Short-term debt | 0 | 249 | [1] | ||||
Long-term debt | 546 | 249 | [1] | ||||
Separate Account variable annuity liabilities | 3,294.1 | 2,792.3 | [1] | ||||
Total liabilities | 12,874.6 | 12,207.8 | [1] | ||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | 0 | [1] | ||||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 | 0.1 | 0.1 | [1] | ||||
Additional paid-in capital | 510.9 | 502.6 | [1] | ||||
Retained earnings | 1,502.2 | 1,512.4 | [1] | ||||
Accumulated other comprehensive income (loss), net of tax: | |||||||
Net unrealized investment losses on fixed maturity securities | (328.3) | (449.6) | [1] | ||||
Net reserve remeasurements attributable to discount rates | 21.9 | 59 | [1] | ||||
Net funded status of benefit plans | (7.6) | (8.8) | [1] | ||||
Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares | (523.9) | (517.4) | [1] | ||||
Total shareholders' equity | 1,175.3 | 1,098.3 | [3] | 1,499 | [3] | ||
Total liabilities and shareholders' equity | $ 14,049.9 | 13,306.1 | [1] | ||||
Previously Reported | |||||||
Assets | |||||||
Total investments | 6,587.6 | ||||||
Cash | 42.8 | 133.7 | 22.3 | ||||
Deferred policy acquisition costs | 433.1 | ||||||
Reinsurance balances receivable | 506.2 | ||||||
Deposit asset on reinsurance | 2,516.6 | ||||||
Intangible assets | 185.2 | ||||||
Goodwill | 54.3 | ||||||
Other assets | 328.7 | ||||||
Separate account asset | 2,792.3 | ||||||
Total assets | 13,446.8 | ||||||
Policy liabilities | |||||||
Investment contract and policy reserves | 6,968 | ||||||
Future policy benefit reserves | 0 | ||||||
Policyholders' account balances | 0 | ||||||
Unpaid claims and claim expenses | 585.1 | ||||||
Unearned premiums | 264.2 | ||||||
Total policy liabilities | 7,817.3 | ||||||
Other policyholder funds | 954 | ||||||
Other liabilities | 297 | ||||||
Short-term debt | 249 | ||||||
Long-term debt | 249 | ||||||
Separate Account variable annuity liabilities | 2,792.3 | ||||||
Total liabilities | 12,358.6 | ||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | ||||||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 | 0.1 | ||||||
Additional paid-in capital | 502.6 | ||||||
Retained earnings | 1,468.6 | ||||||
Accumulated other comprehensive income (loss), net of tax: | |||||||
Net unrealized investment losses on fixed maturity securities | (356.9) | ||||||
Net reserve remeasurements attributable to discount rates | 0 | ||||||
Net funded status of benefit plans | (8.8) | ||||||
Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares | (517.4) | ||||||
Total shareholders' equity | 1,088.2 | 1,807.4 | |||||
Total liabilities and shareholders' equity | 13,446.8 | ||||||
Effect of the Adoption of ASU 2018-12 | |||||||
Assets | |||||||
Total investments | 0 | ||||||
Cash | 0 | 0 | $ 0 | ||||
Deferred policy acquisition costs | (102.5) | ||||||
Reinsurance balances receivable | (38.2) | ||||||
Deposit asset on reinsurance | 0 | ||||||
Intangible assets | 0 | ||||||
Goodwill | 0 | ||||||
Other assets | 0 | ||||||
Separate account asset | 0 | ||||||
Total assets | (140.7) | ||||||
Policy liabilities | |||||||
Investment contract and policy reserves | (151.9) | ||||||
Future policy benefit reserves | 0 | ||||||
Policyholders' account balances | 0 | ||||||
Unpaid claims and claim expenses | (2.9) | ||||||
Unearned premiums | 1.9 | ||||||
Total policy liabilities | (152.9) | ||||||
Other policyholder funds | (0.4) | ||||||
Other liabilities | 2.5 | ||||||
Short-term debt | 0 | ||||||
Long-term debt | 0 | ||||||
Separate Account variable annuity liabilities | 0 | ||||||
Total liabilities | (150.8) | ||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | ||||||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 | 0 | ||||||
Additional paid-in capital | 0 | ||||||
Retained earnings | 43.8 | ||||||
Accumulated other comprehensive income (loss), net of tax: | |||||||
Net unrealized investment losses on fixed maturity securities | (92.7) | ||||||
Net reserve remeasurements attributable to discount rates | 59 | ||||||
Net funded status of benefit plans | 0 | ||||||
Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares | 0 | ||||||
Total shareholders' equity | 10.1 | $ (308.4) | |||||
Total liabilities and shareholders' equity | (140.7) | ||||||
Reclassifications | |||||||
Assets | |||||||
Total investments | 0 | ||||||
Cash | 0 | ||||||
Deferred policy acquisition costs | 0 | ||||||
Reinsurance balances receivable | 0 | ||||||
Deposit asset on reinsurance | 0 | ||||||
Intangible assets | 0 | ||||||
Goodwill | 0 | ||||||
Other assets | 0 | ||||||
Separate account asset | 0 | ||||||
Total assets | 0 | ||||||
Policy liabilities | |||||||
Investment contract and policy reserves | (6,816.1) | ||||||
Future policy benefit reserves | 1,718 | ||||||
Policyholders' account balances | 5,260.6 | ||||||
Unpaid claims and claim expenses | (18.2) | ||||||
Unearned premiums | 0 | ||||||
Total policy liabilities | 144.3 | ||||||
Other policyholder funds | (144.3) | ||||||
Other liabilities | 0 | ||||||
Short-term debt | 0 | ||||||
Long-term debt | 0 | ||||||
Separate Account variable annuity liabilities | 0 | ||||||
Total liabilities | 0 | ||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | ||||||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 | 0 | ||||||
Additional paid-in capital | 0 | ||||||
Retained earnings | 0 | ||||||
Accumulated other comprehensive income (loss), net of tax: | |||||||
Net unrealized investment losses on fixed maturity securities | 0 | ||||||
Net reserve remeasurements attributable to discount rates | 0 | ||||||
Net funded status of benefit plans | 0 | ||||||
Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares | 0 | ||||||
Total shareholders' equity | 0 | ||||||
Total liabilities and shareholders' equity | $ 0 | ||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Prior Period Consolidated Fin_4
Prior Period Consolidated Financial Statements - Consolidated Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Revenues | |||||||||||||
Net premiums and contract charges earned | $ 259.1 | $ 257.4 | $ 255.4 | $ 255.8 | $ 210.6 | $ 225.2 | $ 225.6 | $ 227.4 | $ 1,057.1 | $ 1,027.7 | $ 888.8 | ||
Net investment income | 444.8 | 400.9 | [1] | 422.5 | [1] | ||||||||
Net investment losses | (24) | (56.5) | [1] | (11) | [1] | ||||||||
Other income | 14 | 9.5 | [1] | 29 | [1] | ||||||||
Total revenues | 346.4 | 342.6 | 345.9 | 346.7 | 331.2 | 329.4 | 346.9 | 321.7 | 1,491.9 | 1,381.6 | [1] | 1,329.3 | [1] |
Benefits, losses and expenses | |||||||||||||
Benefits, claims and settlement expenses | 769.1 | 747 | [1] | 590.7 | [1] | ||||||||
Interest credited | 205.7 | 173.4 | [1] | 160 | [1] | ||||||||
Operating expenses | 318.1 | 315.5 | [1] | 251 | [1] | ||||||||
DAC amortization expense | 101.2 | 88.2 | [1] | 90.6 | [1] | ||||||||
Intangible asset amortization expense | 14.8 | 16.8 | [1] | 13 | [1] | ||||||||
Interest expense | 29.7 | 19.4 | [1] | 13.9 | [1] | ||||||||
Other expense - goodwill and intangible asset impairments | 0 | 4.8 | [1],[2] | 0 | [1],[2] | ||||||||
Total benefits, losses and expenses | 1,438.6 | 1,365.1 | [1] | 1,119.2 | [1] | ||||||||
Income before income taxes | 53.3 | 16.5 | [1] | 210.1 | [1] | ||||||||
Income tax expense | 8.3 | (3.3) | [1] | 39.7 | [1] | ||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [1],[2] | $ 170.4 | [1],[2] |
Net income per share | |||||||||||||
Basic (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.12 | $ 0.48 | $ 1.29 | $ 1.17 | $ 1.09 | $ 0.48 | [1] | $ 4.06 | [1] |
Net income - diluted (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.11 | $ 0.48 | $ 1.29 | $ 1.16 | $ 1.09 | $ 0.47 | [1] | $ 4.04 | [1] |
Weighted average number of shares and equivalent shares | |||||||||||||
Basic (in shares) | 41.4 | 41.4 | 41.8 | 41.9 | 42 | 42 | 42 | 41.9 | 41.3 | 41.6 | [1] | 42 | [1] |
Diluted (in shares) | 41.4 | 41.6 | 41.8 | 42.1 | 42.2 | 42.2 | 42.2 | 42.1 | 41.4 | 41.8 | [1] | 42.2 | [1] |
Other comprehensive loss, net of tax: | |||||||||||||
Effect of adopting ASU 2018-12 | $ 0 | $ 0 | [1] | $ (426.6) | [1] | ||||||||
Change in net unrealized investment losses on fixed maturity securities | 121.3 | (796.7) | [1] | (90.3) | [1] | ||||||||
Change in net reserve remeasurements attributable to discount rates | (37.1) | 445.9 | [1] | 110.8 | [1] | ||||||||
Change in net funded status of benefit plans | 1.2 | 1.4 | [1] | 1 | [1] | ||||||||
Other comprehensive income (loss) | 85.4 | (349.4) | [1] | (405.1) | [1] | ||||||||
Total comprehensive income (loss) | $ 130.4 | (329.6) | [1] | (234.7) | [1] | ||||||||
Previously Reported | |||||||||||||
Revenues | |||||||||||||
Net premiums and contract charges earned | 1,029 | 889.6 | |||||||||||
Net investment income | 400.9 | 422.5 | |||||||||||
Net investment losses | (56.5) | (11) | |||||||||||
Other income | 9.5 | 29 | |||||||||||
Total revenues | 1,382.9 | 1,330.1 | |||||||||||
Benefits, losses and expenses | |||||||||||||
Benefits, claims and settlement expenses | 761.6 | 617.7 | |||||||||||
Interest credited | 177.6 | 164.4 | |||||||||||
Operating expenses | 315.9 | 251.5 | |||||||||||
DAC amortization expense | 98.7 | 94.7 | |||||||||||
Intangible asset amortization expense | 16.8 | 13 | |||||||||||
Interest expense | 19.4 | 13.9 | |||||||||||
Other expense - goodwill and intangible asset impairments | 4.8 | 0 | |||||||||||
Total benefits, losses and expenses | 1,394.8 | 1,155.2 | |||||||||||
Income before income taxes | (11.9) | 174.9 | |||||||||||
Income tax expense | (9.3) | 32.1 | |||||||||||
Net income | $ (2.6) | $ 142.8 | |||||||||||
Net income per share | |||||||||||||
Basic (in usd per share) | $ (0.06) | $ 3.40 | |||||||||||
Net income - diluted (in usd per share) | $ (0.06) | $ 3.39 | |||||||||||
Weighted average number of shares and equivalent shares | |||||||||||||
Basic (in shares) | 41.6 | 42 | |||||||||||
Diluted (in shares) | 41.8 | 42.2 | |||||||||||
Other comprehensive loss, net of tax: | |||||||||||||
Effect of adopting ASU 2018-12 | $ 0 | ||||||||||||
Change in net unrealized investment losses on fixed maturity securities | $ (647.6) | (75.6) | |||||||||||
Change in net reserve remeasurements attributable to discount rates | 0 | 0 | |||||||||||
Change in net funded status of benefit plans | 1.4 | 1 | |||||||||||
Other comprehensive income (loss) | (646.2) | (74.6) | |||||||||||
Total comprehensive income (loss) | (648.8) | 68.2 | |||||||||||
Effect of the Adoption of ASU 2018-12 | |||||||||||||
Revenues | |||||||||||||
Net premiums and contract charges earned | (1.3) | (0.8) | |||||||||||
Net investment income | 0 | 0 | |||||||||||
Net investment losses | 0 | 0 | |||||||||||
Other income | 0 | 0 | |||||||||||
Total revenues | (1.3) | (0.8) | |||||||||||
Benefits, losses and expenses | |||||||||||||
Benefits, claims and settlement expenses | (14.6) | (27) | |||||||||||
Interest credited | (4.2) | (4.4) | |||||||||||
Operating expenses | (0.4) | (0.5) | |||||||||||
DAC amortization expense | (10.5) | (4.1) | |||||||||||
Intangible asset amortization expense | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | |||||||||||
Other expense - goodwill and intangible asset impairments | 0 | 0 | |||||||||||
Total benefits, losses and expenses | (29.7) | (36) | |||||||||||
Income before income taxes | 28.4 | 35.2 | |||||||||||
Income tax expense | 6 | 7.6 | |||||||||||
Net income | $ 22.4 | $ 27.6 | |||||||||||
Net income per share | |||||||||||||
Basic (in usd per share) | $ 0.54 | $ 0.66 | |||||||||||
Net income - diluted (in usd per share) | $ 0.53 | $ 0.65 | |||||||||||
Weighted average number of shares and equivalent shares | |||||||||||||
Basic (in shares) | 0 | 0 | |||||||||||
Diluted (in shares) | 0 | 0 | |||||||||||
Other comprehensive loss, net of tax: | |||||||||||||
Effect of adopting ASU 2018-12 | $ (426.6) | ||||||||||||
Change in net unrealized investment losses on fixed maturity securities | $ (149.1) | (14.7) | |||||||||||
Change in net reserve remeasurements attributable to discount rates | 445.9 | 110.8 | |||||||||||
Change in net funded status of benefit plans | 0 | 0 | |||||||||||
Other comprehensive income (loss) | 296.8 | (330.5) | |||||||||||
Total comprehensive income (loss) | $ 319.2 | $ (302.9) | |||||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Prior Period Consolidated Fin_5
Prior Period Consolidated Financial Statements - Consolidated Statement of Changes in Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Cash dividends (in usd per share) | $ 1.32 | $ 1.28 | $ 1.24 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | [1] | $ 1,499 | $ 1,098.3 | $ 1,499 | ||||||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | 45 | 19.8 | [2],[3] | $ 170.4 | [2],[3] | |||
Change in net reserve remeasurements attributable to discount rates | (37.1) | 445.9 | [2] | 110.8 | [2] | |||||||||||
Change in net funded status of benefit plans | 1.4 | |||||||||||||||
Ending balance | 1,098.3 | [1] | 1,499 | [1] | 1,175.3 | 1,098.3 | [1] | 1,499 | [1] | |||||||
Previously Reported | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 1,807.4 | 1,088.2 | 1,807.4 | |||||||||||||
Net income | (2.6) | 142.8 | ||||||||||||||
Change in net reserve remeasurements attributable to discount rates | 0 | 0 | ||||||||||||||
Change in net funded status of benefit plans | 1.4 | |||||||||||||||
Ending balance | 1,088.2 | 1,807.4 | 1,088.2 | 1,807.4 | ||||||||||||
Effect of the Adoption of ASU 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | (308.4) | 10.1 | (308.4) | |||||||||||||
Net income | 22.4 | 27.6 | ||||||||||||||
Change in net reserve remeasurements attributable to discount rates | 445.9 | 110.8 | ||||||||||||||
Change in net funded status of benefit plans | 0 | |||||||||||||||
Ending balance | 10.1 | (308.4) | 10.1 | (308.4) | ||||||||||||
Common stock, $0.001 par value | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | [1] | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||
Ending balance | 0.1 | [1] | 0.1 | [1] | 0.1 | 0.1 | [1] | 0.1 | [1] | |||||||
Common stock, $0.001 par value | Previously Reported | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 0.1 | 0.1 | 0.1 | |||||||||||||
Ending balance | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Common stock, $0.001 par value | Effect of the Adoption of ASU 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 0 | 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | ||||||||||||
Additional paid-in capital | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | [1] | 495.3 | 488.3 | 502.6 | 495.3 | 488.3 | ||||||||||
Ending balance | 502.6 | [1] | 495.3 | [1] | 510.9 | 502.6 | [1] | 495.3 | [1] | |||||||
Additional paid-in capital | Previously Reported | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 495.3 | 502.6 | 495.3 | |||||||||||||
Ending balance | 502.6 | 495.3 | 502.6 | 495.3 | ||||||||||||
Additional paid-in capital | Effect of the Adoption of ASU 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 0 | 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | ||||||||||||
Retained earnings | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | [1] | 1,547 | 1,434.6 | 1,512.4 | 1,547 | 1,434.6 | ||||||||||
Net income | 45 | 19.8 | [1] | 170.4 | [1] | |||||||||||
Dividends,per share; 2022, $0.32 per share | (55.2) | (53.7) | [1] | (52.5) | [1] | |||||||||||
Ending balance | 1,512.4 | [1] | 1,547 | [1] | 1,502.2 | 1,512.4 | [1] | 1,547 | [1] | |||||||
Retained earnings | Accounting Standards Update 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | (0.7) | (5.5) | (0.7) | (5.5) | ||||||||||||
Ending balance | (0.7) | (0.7) | ||||||||||||||
Retained earnings | Previously Reported | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 1,524.9 | 1,434.6 | 1,468.6 | 1,524.9 | 1,434.6 | |||||||||||
Net income | (2.6) | 142.8 | ||||||||||||||
Dividends,per share; 2022, $0.32 per share | (53.7) | (52.5) | ||||||||||||||
Ending balance | 1,468.6 | 1,524.9 | 1,468.6 | 1,524.9 | ||||||||||||
Retained earnings | Effect of the Adoption of ASU 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 22.1 | 0 | 43.8 | 22.1 | 0 | |||||||||||
Net income | 22.4 | 27.6 | ||||||||||||||
Dividends,per share; 2022, $0.32 per share | 0 | 0 | ||||||||||||||
Ending balance | 43.8 | 22.1 | 43.8 | 22.1 | ||||||||||||
Retained earnings | Effect of the Adoption of ASU 2018-12 | Accounting Standards Update 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | (0.7) | (5.5) | (0.7) | (5.5) | ||||||||||||
Ending balance | (0.7) | (0.7) | ||||||||||||||
Accumulated other comprehensive income (loss), net of tax: | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | [1] | (50) | 355.1 | (399.4) | (50) | 355.1 | ||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (796.7) | (90.3) | ||||||||||||||
Change in net reserve remeasurements attributable to discount rates | (37.1) | 445.9 | [1] | 110.8 | [1] | |||||||||||
Ending balance | (399.4) | [1] | (50) | [1] | (314) | (399.4) | [1] | (50) | [1] | |||||||
Accumulated other comprehensive income (loss), net of tax: | Accounting Standards Update 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | (426.6) | (426.6) | ||||||||||||||
Accumulated other comprehensive income (loss), net of tax: | Previously Reported | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | 280.5 | 355.1 | (365.7) | 280.5 | 355.1 | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (647.6) | (75.6) | ||||||||||||||
Change in net reserve remeasurements attributable to discount rates | 0 | 0 | ||||||||||||||
Ending balance | (365.7) | 280.5 | (365.7) | 280.5 | ||||||||||||
Accumulated other comprehensive income (loss), net of tax: | Effect of the Adoption of ASU 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | (330.5) | 0 | (33.7) | (330.5) | 0 | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (149.1) | (14.7) | ||||||||||||||
Change in net reserve remeasurements attributable to discount rates | 445.9 | 110.8 | ||||||||||||||
Ending balance | (33.7) | (330.5) | (33.7) | (330.5) | ||||||||||||
Accumulated other comprehensive income (loss), net of tax: | Effect of the Adoption of ASU 2018-12 | Accounting Standards Update 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | (426.6) | (426.6) | ||||||||||||||
Treasury stock, at cost | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | [1] | (493.4) | $ (488.1) | (517.4) | (493.4) | (488.1) | ||||||||||
Ending balance | (517.4) | [1] | (493.4) | [1] | (523.9) | (517.4) | [1] | (493.4) | [1] | |||||||
Treasury stock, at cost | Previously Reported | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | (493.4) | (517.4) | (493.4) | |||||||||||||
Ending balance | (517.4) | (493.4) | (517.4) | (493.4) | ||||||||||||
Treasury stock, at cost | Effect of the Adoption of ASU 2018-12 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning balance | $ 0 | $ 0 | 0 | |||||||||||||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Prior Period Consolidated Fin_6
Prior Period Consolidated Financial Statements - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||||
Cash flows - operating activities | |||||||||||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [1],[2] | $ 170.4 | [1],[2] | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Net investment losses | 24 | 56.5 | [2] | 11 | [2] | ||||||||||||
Depreciation and intangible asset amortization | 26.2 | 27.6 | [2] | 18.4 | [2] | ||||||||||||
Share-based compensation expense | 9.5 | 8.9 | [2] | 8.4 | [2] | ||||||||||||
Loss (gain) from equity method investments, net of dividends or distributions | (14.5) | 18.2 | [2] | (41.5) | [2] | ||||||||||||
Other expense - goodwill and intangible asset impairments | 0 | 4.8 | [1],[2] | 0 | [1],[2] | ||||||||||||
Changes in: | |||||||||||||||||
Insurance liabilities | 186.7 | 334.2 | [2] | 114.5 | [2] | ||||||||||||
Amounts due under reinsurance agreements | (12.5) | (309.8) | [2] | 7.4 | [2] | ||||||||||||
Income tax liabilities | (15) | 110.5 | [2] | (91.2) | [2] | ||||||||||||
Other operating assets and liabilities | 53.9 | (109.4) | [2] | 4.5 | [2] | ||||||||||||
Other, net | (1.2) | 10.2 | [2] | 3 | [2] | ||||||||||||
Net cash provided by operating activities | 302.1 | 171.5 | [2] | 204.9 | [2] | ||||||||||||
Cash flows - investing activities | |||||||||||||||||
Net cash used in investing activities | (107.4) | (214.6) | [2] | (302) | [2] | ||||||||||||
Cash flows - financing activities | |||||||||||||||||
Net cash provided by (used in) financing activities | (207.8) | (47.8) | [2] | 208.5 | [2] | ||||||||||||
Net increase (decrease) in cash | (13.1) | (90.9) | [2] | 111.4 | [2] | ||||||||||||
Cash at beginning of year | [2] | 133.7 | 22.3 | 42.8 | [3] | 133.7 | 22.3 | ||||||||||
Cash at end of year | 42.8 | [2],[3] | 133.7 | [2] | 29.7 | 42.8 | [2],[3] | 133.7 | [2] | ||||||||
Previously Reported | |||||||||||||||||
Cash flows - operating activities | |||||||||||||||||
Net income | (2.6) | 142.8 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Net investment losses | 56.5 | 11 | |||||||||||||||
Depreciation and intangible asset amortization | 27.6 | 18.4 | |||||||||||||||
Share-based compensation expense | 8.9 | 8.4 | |||||||||||||||
Loss (gain) from equity method investments, net of dividends or distributions | 18.2 | (41.5) | |||||||||||||||
Other expense - goodwill and intangible asset impairments | 4.8 | 0 | |||||||||||||||
Changes in: | |||||||||||||||||
Insurance liabilities | 440.5 | 46.9 | |||||||||||||||
Amounts due under reinsurance agreements | (348.2) | (1.5) | |||||||||||||||
Income tax liabilities | (17.1) | 8.5 | |||||||||||||||
Other operating assets and liabilities | (28.1) | 8.9 | |||||||||||||||
Other, net | 11 | 3 | |||||||||||||||
Net cash provided by operating activities | 171.5 | 204.9 | |||||||||||||||
Cash flows - investing activities | |||||||||||||||||
Net cash used in investing activities | (214.6) | (302) | |||||||||||||||
Cash flows - financing activities | |||||||||||||||||
Net cash provided by (used in) financing activities | (47.8) | 208.5 | |||||||||||||||
Net increase (decrease) in cash | (90.9) | 111.4 | |||||||||||||||
Cash at beginning of year | 133.7 | 22.3 | 42.8 | 133.7 | 22.3 | ||||||||||||
Cash at end of year | 42.8 | 133.7 | 42.8 | 133.7 | |||||||||||||
Effect of the Adoption of ASU 2018-12 | |||||||||||||||||
Cash flows - operating activities | |||||||||||||||||
Net income | 22.4 | 27.6 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Net investment losses | 0 | 0 | |||||||||||||||
Depreciation and intangible asset amortization | 0 | 0 | |||||||||||||||
Share-based compensation expense | 0 | 0 | |||||||||||||||
Loss (gain) from equity method investments, net of dividends or distributions | 0 | 0 | |||||||||||||||
Other expense - goodwill and intangible asset impairments | 0 | 0 | |||||||||||||||
Changes in: | |||||||||||||||||
Insurance liabilities | (106.3) | 67.6 | |||||||||||||||
Amounts due under reinsurance agreements | 38.4 | 8.9 | |||||||||||||||
Income tax liabilities | 127.6 | (99.7) | |||||||||||||||
Other operating assets and liabilities | (81.3) | (4.4) | |||||||||||||||
Other, net | (0.8) | 0 | |||||||||||||||
Net cash provided by operating activities | 0 | 0 | |||||||||||||||
Cash flows - investing activities | |||||||||||||||||
Net cash used in investing activities | 0 | 0 | |||||||||||||||
Cash flows - financing activities | |||||||||||||||||
Net cash provided by (used in) financing activities | 0 | 0 | |||||||||||||||
Net increase (decrease) in cash | 0 | 0 | |||||||||||||||
Cash at beginning of year | $ 0 | $ 0 | $ 0 | 0 | 0 | ||||||||||||
Cash at end of year | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Prior Period Consolidated Fin_7
Prior Period Consolidated Financial Statements - Schedule of Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Net premiums and contract charges earned | $ 259.1 | $ 257.4 | $ 255.4 | $ 255.8 | $ 210.6 | $ 225.2 | $ 225.6 | $ 227.4 | $ 1,057.1 | $ 1,027.7 | $ 888.8 | ||
Insurance premiums written and contract deposits | 358.2 | 372.7 | 359.9 | 346.2 | 314 | 346.2 | 334.2 | 304.4 | 1,552.6 | 1,489.1 | 1,359.9 | ||
Revenues | 346.4 | 342.6 | 345.9 | 346.7 | 331.2 | 329.4 | 346.9 | 321.7 | 1,491.9 | 1,381.6 | [1] | 1,329.3 | [1] |
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [1],[2] | $ 170.4 | [1],[2] |
Basic | |||||||||||||
Net income - basic (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.12 | $ 0.48 | $ 1.29 | $ 1.17 | $ 1.09 | $ 0.48 | [1] | $ 4.06 | [1] |
Shares of common stock - weighted average basic (in shares) | 41.4 | 41.4 | 41.8 | 41.9 | 42 | 42 | 42 | 41.9 | 41.3 | 41.6 | [1] | 42 | [1] |
Diluted | |||||||||||||
Net income - diluted (in usd per share) | $ (0.40) | $ 0.49 | $ (0.10) | $ 0.48 | $ 1.11 | $ 0.48 | $ 1.29 | $ 1.16 | $ 1.09 | $ 0.47 | [1] | $ 4.04 | [1] |
Shares of common stock and equivalent shares - weighted average diluted (in shares) | 41.4 | 41.6 | 41.8 | 42.1 | 42.2 | 42.2 | 42.2 | 42.1 | 41.4 | 41.8 | [1] | 42.2 | [1] |
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Schedule I Summary of Investm_2
Schedule I Summary of Investments-Other Than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2023 USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 7,241.6 |
Balance Sheet | 6,830.5 |
Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,652.9 |
Cost or amortized cost, net | 5,235.3 |
Balance Sheet | 5,235.3 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 86.2 |
Cost or amortized cost, net | 86.2 |
Balance Sheet | 86.2 |
U.S. Government and federally sponsored agency obligations | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 925 |
Cost or amortized cost, net | 819.2 |
Balance Sheet | 819.2 |
States, municipalities and political subdivisions | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,333.4 |
Cost or amortized cost, net | 1,270.1 |
Balance Sheet | 1,270.1 |
Foreign government bonds | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 23.1 |
Cost or amortized cost, net | 22.1 |
Balance Sheet | 22.1 |
Public utilities | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 93.8 |
Cost or amortized cost, net | 80.9 |
Balance Sheet | 80.9 |
All other corporate bonds | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,850 |
Cost or amortized cost, net | 1,665.5 |
Balance Sheet | 1,665.5 |
Asset-backed securities | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,044.7 |
Cost or amortized cost, net | 1,020.5 |
Balance Sheet | 1,020.5 |
Residential mortgage-backed securities (non-agency) | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 13.9 |
Cost or amortized cost, net | 12.9 |
Balance Sheet | 12.9 |
Commercial mortgage-backed securities | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 342.9 |
Cost or amortized cost, net | 317.8 |
Balance Sheet | 317.8 |
Redeemable preferred stocks | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 26.1 |
Cost or amortized cost, net | 26.3 |
Balance Sheet | 26.3 |
Industrial, miscellaneous and all other | Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 0.3 |
Cost or amortized cost, net | 0.3 |
Balance Sheet | 0.3 |
Banking & finance and insurance companies | Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1.1 |
Cost or amortized cost, net | 1.1 |
Balance Sheet | 1.1 |
Non-redeemable preferred stocks | Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 68.3 |
Cost or amortized cost, net | 68.3 |
Balance Sheet | 68.3 |
Closed-end fund | Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 16.5 |
Cost or amortized cost, net | 16.5 |
Balance Sheet | 16.5 |
Limited partnership interests | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,138.8 |
Balance Sheet | 1,138.8 |
Short-term Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 132.9 |
Balance Sheet | 132.9 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 141.4 |
Balance Sheet | 141.4 |
Derivatives | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 12.5 |
Cost or amortized cost, net | 19 |
Balance Sheet | 19 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 43.2 |
Balance Sheet | 43.2 |
Other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 33.7 |
Balance Sheet | $ 33.7 |
Schedule II Condensed Financi_2
Schedule II Condensed Financial Information of Registrant - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
ASSETS | |||||
Investments in subsidiaries | $ 1,138.8 | $ 983.7 | [1] | ||
Total assets | 14,049.9 | 13,306.1 | [1] | $ 14,460.2 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Short-term debt | 0 | 249 | [1] | ||
Long-term debt | 546 | 249 | [1] | ||
Other liabilities | 287.1 | 299.5 | [1] | ||
Total liabilities | 12,874.6 | 12,207.8 | [1] | ||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | 0 | [1] | ||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 | 0.1 | 0.1 | [1] | ||
Additional paid-in capital | 510.9 | 502.6 | [1] | ||
Retained earnings | 1,502.2 | 1,512.4 | [1] | ||
Accumulated other comprehensive income (loss), net of taxes: | |||||
Net unrealized investment gains (losses) on fixed maturity securities | (328.3) | (449.6) | [1] | ||
Net reserve remeasurements attributable to discount rates | 21.9 | 59 | [1] | ||
Net funded status of benefit plans | (7.6) | (8.8) | [1] | ||
Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares | (523.9) | (517.4) | [1] | ||
Total shareholders' equity | 1,175.3 | 1,098.3 | [2] | $ 1,499 | [2] |
Total liabilities and shareholders' equity | $ 14,049.9 | $ 13,306.1 | [1] | ||
Common Stock, Shares, Issued | 66,747,821 | 66,618,465 | |||
Parent company | |||||
ASSETS | |||||
Investments and cash | $ 3.4 | $ 2.1 | |||
Investments in subsidiaries | 1,716.6 | 1,597.1 | |||
Other Assets | 17.1 | 7.1 | |||
Total assets | 1,737.1 | 1,606.3 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Short-term debt | 0 | 249 | |||
Long-term debt | 546 | 249 | |||
Other liabilities | 15.8 | 10 | |||
Total liabilities | 561.8 | 508 | |||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | 0 | |||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2023, 66,747,821; 2022, 66,618,465 | 0.1 | 0.1 | |||
Additional paid-in capital | 510.9 | 502.6 | |||
Retained earnings | 1,502.2 | 1,512.4 | |||
Accumulated other comprehensive income (loss), net of taxes: | |||||
Net unrealized investment gains (losses) on fixed maturity securities | (328.3) | (449.6) | |||
Net reserve remeasurements attributable to discount rates | 21.9 | 59 | |||
Net funded status of benefit plans | (7.6) | (8.8) | |||
Treasury stock, at cost, 2023, 25,911,087 shares; 2022, 25,714,153 shares | (523.9) | (517.4) | |||
Total shareholders' equity | 1,175.3 | 1,098.3 | |||
Total liabilities and shareholders' equity | $ 1,737.1 | $ 1,606.3 | |||
Common Stock, Shares, Issued | 66,747,821 | 66,618,465 | |||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Schedule II Condensed Financi_3
Schedule II Condensed Financial Information of Registrant - Condensed Balance Sheet (Additional Information) (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 1996 |
Condensed Financial Statements, Captions [Line Items] | ||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 | ||
Common stock, shares issued (in shares) | 66,747,821 | 66,618,465 | ||
Treasury stock (in shares) | 25,911,087 | 25,714,153 | ||
Parent company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 | ||
Common stock, shares issued (in shares) | 66,747,821 | 66,618,465 | ||
Treasury stock (in shares) | 25,911,087 | 25,714,153 |
Schedule II Condensed Financi_4
Schedule II Condensed Financial Information of Registrant - Condensed Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Revenues | |||||||||||||
Net investment income | $ 444.8 | $ 400.9 | [1] | $ 422.5 | [1] | ||||||||
Net investment losses | (24) | (56.5) | [1] | (11) | [1] | ||||||||
Total revenues | $ 346.4 | $ 342.6 | $ 345.9 | $ 346.7 | $ 331.2 | $ 329.4 | $ 346.9 | $ 321.7 | 1,491.9 | 1,381.6 | [1] | 1,329.3 | [1] |
Expenses | |||||||||||||
Interest expense | 29.7 | 19.4 | [1] | 13.9 | [1] | ||||||||
Total benefits, losses and expenses | 1,438.6 | 1,365.1 | [1] | 1,119.2 | [1] | ||||||||
Income tax expense (benefit) | 8.3 | (3.3) | [1] | 39.7 | [1] | ||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | 45 | 19.8 | [1],[2] | 170.4 | [1],[2] |
Parent company | |||||||||||||
Revenues | |||||||||||||
Net investment income | 0.2 | 0 | (0.1) | ||||||||||
Total revenues | 0.2 | 0 | (0.1) | ||||||||||
Expenses | |||||||||||||
Interest expense | 29.7 | 19.4 | 13.8 | ||||||||||
Other | 5.1 | 8.4 | 11.2 | ||||||||||
Total benefits, losses and expenses | 34.8 | 27.8 | 25 | ||||||||||
Loss before income tax benefit and equity in net earnings of subsidiaries | (34.6) | (27.8) | (25.1) | ||||||||||
Income tax expense (benefit) | (6.9) | (6.3) | (5.4) | ||||||||||
Loss before equity in net earnings of subsidiaries | (27.7) | (21.5) | (19.7) | ||||||||||
Equity in net earnings (losses) of subsidiaries | 72.7 | 41.3 | 190.1 | ||||||||||
Net income | $ 45 | $ 19.8 | $ 170.4 | ||||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Schedule II Condensed Financi_5
Schedule II Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ (16.7) | $ 20.4 | $ (4.2) | $ 20.3 | $ 46.9 | $ 20.2 | $ 54.2 | $ 49.1 | $ 45 | $ 19.8 | [1],[2] | $ 170.4 | [1],[2] | ||||
Changes in: | |||||||||||||||||
Other operating assets and liabilities | 53.9 | (109.4) | [2] | 4.5 | [2] | ||||||||||||
Net cash provided by operating activities | 302.1 | 171.5 | [2] | 204.9 | [2] | ||||||||||||
Cash flows from investing activities | |||||||||||||||||
Purchase of equity securities | (2.5) | (5.2) | [2] | (46.1) | [2] | ||||||||||||
Other, net | 9.2 | (9.6) | (10.2) | ||||||||||||||
Acquisition of business, net of cash acquired | 0 | (164.4) | [2] | 0 | [2] | ||||||||||||
Net cash used in investing activities | (107.4) | (214.6) | [2] | (302) | [2] | ||||||||||||
Cash flows from financing activities | |||||||||||||||||
Dividends paid to shareholders | (53.9) | (52.6) | [2] | (51.4) | [2] | ||||||||||||
Proceeds from issuance of 2023 Senior Notes due 2028 | 297.7 | 0 | [2] | 0 | [2] | ||||||||||||
Principal repayment on Revolving Credit Facility | (249) | 0 | 0 | ||||||||||||||
Proceeds from exercise of stock options | 0 | 0 | 0.3 | ||||||||||||||
Withholding tax payments on RSUs tendered | (1.8) | (2.4) | [2] | (2) | [2] | ||||||||||||
Net cash provided by (used in) financing activities | (207.8) | (47.8) | [2] | 208.5 | [2] | ||||||||||||
Net increase (decrease) in cash | (13.1) | (90.9) | [2] | 111.4 | [2] | ||||||||||||
Cash at beginning of year | [2] | 133.7 | 22.3 | 42.8 | [3] | 133.7 | 22.3 | ||||||||||
Cash at end of year | 42.8 | [2],[3] | 133.7 | [2] | 29.7 | 42.8 | [2],[3] | 133.7 | [2] | ||||||||
Parent company | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | 45 | 19.8 | 170.4 | ||||||||||||||
Equity in net income of subsidiaries | (72.7) | (41.3) | (190.1) | ||||||||||||||
Dividends received from subsidiaries | 132.1 | 184.3 | 66 | ||||||||||||||
Changes in: | |||||||||||||||||
Income taxes | (5.8) | 3.9 | 1.8 | ||||||||||||||
Other operating assets and liabilities | 6 | 0.8 | 8.4 | ||||||||||||||
Other | 1.2 | (1.5) | (2.6) | ||||||||||||||
Net cash provided by operating activities | 105.8 | 166 | 53.9 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Purchase of equity securities | 0 | 0 | 0 | ||||||||||||||
Other, net | (1.3) | (0.7) | 2.7 | ||||||||||||||
Capital contributions to subsidiaries | (98) | (35) | (5) | ||||||||||||||
Acquisition of business, net of cash acquired | 0 | (172.3) | 0 | ||||||||||||||
Net cash used in investing activities | (99.3) | (208) | (2.3) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Dividends paid to shareholders | (53.9) | (52.6) | (51.4) | ||||||||||||||
Proceeds from issuance of 2023 Senior Notes due 2028 | 296.5 | 0 | 0 | ||||||||||||||
Principal borrowings on Revolving Credit Facility | 0 | 0 | 114 | ||||||||||||||
Principal repayment on Revolving Credit Facility | (249) | 0 | 0 | ||||||||||||||
Acquisition of treasury stock | (6.5) | (24) | (5.3) | ||||||||||||||
Proceeds from exercise of stock options | 0 | 0 | 0.3 | ||||||||||||||
Withholding tax payments on RSUs tendered | (1.8) | (2.4) | (2) | ||||||||||||||
Proceeds for Share-based compensation | 8 | 7.1 | 6.7 | ||||||||||||||
Net cash provided by (used in) financing activities | (6.7) | (71.9) | 62.3 | ||||||||||||||
Net increase (decrease) in cash | (0.2) | (113.9) | 113.9 | ||||||||||||||
Cash at beginning of year | $ 114.2 | $ 0.3 | 0.3 | 114.2 | 0.3 | ||||||||||||
Cash at end of year | $ 0.3 | $ 114.2 | $ 0.1 | $ 0.3 | $ 114.2 | ||||||||||||
[1]Recast for the adoption of ASU 2018-12. See Note 1 of the Consolidated Financial Statements |
Schedule III and VI Supplemen_2
Schedule III and VI Supplementary Insurance Information Supplemental Information Concerning Property and Casualty Insurance Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | $ 336.3 | $ 330.6 | $ 324.4 |
Future policy benefits, claims and claim expenses | 7,530.5 | 7,542.6 | 7,477.4 |
Unearned premiums | 300.9 | 266.1 | 255.7 |
Other policy claims and benefits payable | 916 | 809.3 | 945.9 |
Premium revenue/ premium earned | 1,057.1 | 1,027.7 | 888.8 |
Net investment income | 444.8 | 400.9 | 422.5 |
Benefits, claims and settlement expenses | 974.8 | 920.4 | 750.7 |
Amortization of deferred policy acquisition costs | 101.2 | 88.2 | 90.6 |
Other operating expenses | 362.6 | 356.5 | 277.9 |
Net premiums written (excluding life) | 909.3 | 860.2 | 731.7 |
Property & Casualty | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 29.3 | 24.6 | 24.4 |
Future policy benefits, claims and claim expenses | 416.9 | 388.7 | 367.4 |
Unearned premiums | 297.9 | 259.1 | 249.8 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue/ premium earned | 645.5 | 608.2 | 617.4 |
Net investment income | 37.9 | 31.4 | 61.1 |
Benefits, claims and settlement expenses | 557 | 534.3 | 447.9 |
Amortization of deferred policy acquisition costs | 71.3 | 64.3 | 67.7 |
Other operating expenses | 103.3 | 102.6 | 97.2 |
Net premiums written (excluding life) | 684.4 | 617.5 | 607.8 |
Life & Retirement | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 297.7 | 299.5 | 295.1 |
Future policy benefits, claims and claim expenses | 6,418.2 | 6,413.7 | 6,714.6 |
Unearned premiums | 0 | 4 | 2.8 |
Other policy claims and benefits payable | 816 | 719.8 | 873.4 |
Premium revenue/ premium earned | 151.8 | 144 | 143.4 |
Net investment income | 369.9 | 338.3 | 338.6 |
Benefits, claims and settlement expenses | 325.1 | 293.6 | 269.7 |
Amortization of deferred policy acquisition costs | 28 | 23 | 22.1 |
Other operating expenses | 99 | 108.2 | 102 |
Net premiums written (excluding life) | 29.2 | 29.5 | 30.6 |
Supplemental & Group Benefits | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 9.3 | 6.5 | 4.9 |
Future policy benefits, claims and claim expenses | 695.4 | 740.2 | 395.4 |
Unearned premiums | 3 | 3 | 3.1 |
Other policy claims and benefits payable | 100 | 89.5 | 72.5 |
Premium revenue/ premium earned | 259.8 | 275.5 | 128 |
Net investment income | 38.9 | 33.3 | 25.2 |
Benefits, claims and settlement expenses | 92.7 | 92.5 | 33.1 |
Amortization of deferred policy acquisition costs | 1.9 | 0.9 | 0.8 |
Other operating expenses | 123.2 | 118.1 | 54.3 |
Net premiums written (excluding life) | 195.7 | 213.2 | 93.3 |
Other, including consolidating eliminations | Eliminations | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Net investment income | (1.9) | (2.1) | (2.4) |
Other operating expenses | $ 37.1 | $ 27.6 | $ 24.4 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Life insurance in force | |||
Gross Amount | $ 40,422.9 | $ 38,564.6 | $ 21,032.6 |
Ceded to Other Companies | 9,597.7 | 9,330.9 | 4,693.5 |
Assumed from Other Companies | 0 | 0 | 0 |
Net Amount | $ 30,825.2 | $ 29,233.7 | $ 16,339.1 |
Percentage of Amount Assumed to Net | 0% | 0% | 0% |
Premiums | |||
Gross Amount | $ 1,097.6 | $ 1,046.7 | $ 912.4 |
Ceded to Other Companies | 76.3 | 72 | 33.3 |
Assumed from Other Companies | 35.8 | 53 | 9.7 |
Net Amount | $ 1,057.1 | $ 1,027.7 | $ 888.8 |
Percentage of Amount Assumed to Net | 3.40% | 5.20% | 1.10% |
Property & Casualty | |||
Premiums | |||
Gross Amount | $ 653 | $ 614.7 | $ 623 |
Ceded to Other Companies | 18.1 | 15 | 15.3 |
Assumed from Other Companies | 10.7 | 8.5 | 9.7 |
Net Amount | $ 645.6 | $ 608.2 | $ 617.4 |
Percentage of Amount Assumed to Net | 1.70% | 1.40% | 1.60% |
Life & Retirement | |||
Premiums | |||
Gross Amount | $ 166.5 | $ 158.9 | $ 159.5 |
Ceded to Other Companies | 14.8 | 14.9 | 16.1 |
Assumed from Other Companies | 0 | 0 | 0 |
Net Amount | $ 151.7 | $ 144 | $ 143.4 |
Percentage of Amount Assumed to Net | 0% | 0% | 0% |
Supplemental & Group Benefits | |||
Premiums | |||
Gross Amount | $ 278.1 | $ 273.1 | $ 129.9 |
Ceded to Other Companies | 43.4 | 42.1 | 1.9 |
Assumed from Other Companies | 25.1 | 44.5 | 0 |
Net Amount | $ 259.8 | $ 275.5 | $ 128 |
Percentage of Amount Assumed to Net | 9.70% | 16.20% | 0% |
Uncategorized Items - hmn-20231
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2018-12 [Member] |