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INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Fixed Maturities for Available for Sale and Equity Securities

At December 31, 2022, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Estimated fair value
Investment grade (a):
Corporate securities	$	13,043.6	$	28.9	$	(1,858.4)	$	(37.0)	$	11,177.1
United States Treasury securities and obligations of United States government corporations and agencies	171.7		—		(13.0)		—		158.7
States and political subdivisions	2,836.3		19.3		(476.0)		(.8)		2,378.8
Foreign governments	86.3		.1		(11.3)		(.4)		74.7
Asset-backed securities	1,312.5		1.0		(130.1)		(.3)		1,183.1
Agency residential mortgage-backed securities	174.3		1.4		(.7)		—		175.0
Non-agency residential mortgage-backed securities	1,122.6		6.0		(174.3)		—		954.3
Collateralized loan obligations	825.2		.3		(39.6)		—		785.9
Commercial mortgage-backed securities	2,401.3		.1		(254.1)		—		2,147.3
Total investment grade fixed maturities, available for sale	21,973.8		57.1		(2,957.5)		(38.5)		19,034.9
Below-investment grade (a) (b):
Corporate securities	605.5		1.0		(53.5)		(17.4)		535.6
States and political subdivisions	10.6		—		(.8)		(.1)		9.7

Asset-backed securities	123.2		—		(19.3)		—		103.9

Non-agency residential mortgage-backed securities	577.8		34.0		(17.6)		—		594.2

Commercial mortgage-backed securities	93.3		—		(18.2)		—		75.1
Total below-investment grade fixed maturities, available for sale	1,410.4		35.0		(109.4)		(17.5)		1,318.5
Total fixed maturities, available for sale	$	23,384.2	$	92.1	$	(3,066.9)	$	(56.0)	$	20,353.4

_______________

(a)Investment ratings are assigned the second lowest rating by Nationally Recognized Statistical Rating Organizations ("NRSROs") (Moody's Investor Services, Inc. ("Moody's"), S&P Global Ratings ("S&P") or Fitch Ratings ("Fitch")), or if not rated by such firms, the rating assigned by the National Association of Insurance Commissioners (the "NAIC"). NAIC designations of "1" or "2" include fixed maturities generally rated investment grade (rated "Baa3" or higher by Moody's or rated "BBB-" or higher by S&P and Fitch). NAIC designations of "3" through "6" are referred to as below-investment grade (which generally are rated "Ba1" or lower by Moody's or rated "BB+" or lower by S&P and Fitch). References to investment grade or below-investment grade throughout our consolidated financial statements are determined as described above.

(b)Certain structured securities rated below-investment grade by NRSROs may be assigned a NAIC 1 or NAIC 2 designation based on the cost basis of the security relative to estimated recoverable amounts as determined by the NAIC. Refer to the table below for a summary of our fixed maturity securities, available for sale, by NAIC designations.

At December 31, 2021, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Estimated fair value
Investment grade:
Corporate securities	$	12,384.0	$	2,229.5	$	(20.2)	$	(4.3)	$	14,589.0
United States Treasury securities and obligations of United States government corporations and agencies	166.2		54.3		(.9)		—		219.6
States and political subdivisions	2,637.4		356.7		(1.5)		—		2,992.6
Foreign governments	85.4		13.6		(.3)		(.2)		98.5
Asset-backed securities	983.1		35.2		(1.9)		—		1,016.4
Agency residential mortgage-backed securities	36.7		3.7		—		—		40.4
Non-agency residential mortgage-backed securities	1,141.0		28.4		(2.9)		—		1,166.5
Collateralized loan obligations	574.2		2.3		(1.2)		—		575.3
Commercial mortgage-backed securities	2,064.6		76.3		(8.7)		—		2,132.2
Total investment grade fixed maturities, available for sale	20,072.6		2,800.0		(37.6)		(4.5)		22,830.5
Below-investment grade:
Corporate securities	811.4		55.0		(1.5)		(3.1)		861.8
States and political subdivisions	11.6		—		—		—		11.6

Asset-backed securities	145.9		1.8		(1.2)		—		146.5

Non-agency residential mortgage-backed securities	729.4		128.1		(.2)		—		857.3
Collateralized loan obligations	13.1		—		(.1)		—		13.0
Commercial mortgage-backed securities	83.6		1.6		(.5)		—		84.7
Total below-investment grade fixed maturities, available for sale	1,795.0		186.5		(3.5)		(3.1)		1,974.9
Total fixed maturities, available for sale	$	21,867.6	$	2,986.5	$	(41.1)	$	(7.6)	$	24,805.4

Schedule of NAIC Designations and NRSRO Equivalent Ratings

The following summarizes the NAIC designations and NRSRO equivalent ratings:


NAIC Designation						NRSRO Equivalent Rating
1						AAA/AA/A
2						BBB
3						BB
4						B
5						CCC and lower
6						In or near default

Summary of Fixed Maturity Securities Available for Sale

A summary of our fixed maturity securities, available for sale, by NAIC designations (or for fixed maturity securities held by non-regulated entities, based on NRSRO ratings) as of December 31, 2022 is as follows (dollars in millions):


NAIC designation	Amortized cost		Estimated fair value		Percentage of total estimated fair value
1	$	14,205.4	$	12,385.7	60.9	%
2	8,407.1		7,294.9		35.8
Total NAIC 1 and 2 (investment grade)	22,612.5		19,680.6		96.7
3	606.9		535.8		2.6
4	145.5		125.9		.6
5	18.3		11.1		.1
6	1.0		—		—
Total NAIC 3,4,5 and 6 (below-investment grade)	771.7		672.8		3.3
	$	23,384.2	$	20,353.4	100.0	%

Schedule of Accumulated Other Comprehensive Income (Loss)

These amounts, included in shareholders' equity as of December 31, 2022 and 2021, were as follows (dollars in millions):


	2022		2021
Net unrealized gains (losses) on investments having no allowance for credit losses	$	(1,247.0)	$	2,963.3
Unrealized losses on investments with an allowance for credit losses	(1,780.7)		(23.1)
Adjustment to present value of future profits (a)	8.2		(8.3)
Adjustment to deferred acquisition costs	331.7		(420.2)
Adjustment to insurance liabilities	—		(25.5)

Deferred income tax assets (liabilities)	594.7		(539.1)
Accumulated other comprehensive income (loss)	$	(2,093.1)	$	1,947.1

________

(a)The present value of future profits is the value assigned to the right to receive future cash flows from contracts existing at September 10, 2003, the date our Predecessor emerged from bankruptcy.

Schedule of Investments Classified by Contractual Maturity Date

The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at December 31, 2022, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities (such as asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities, collectively referred to as "structured securities") frequently include provisions for periodic principal payments and permit periodic unscheduled payments.


	Amortized cost		Estimated fair value
	(Dollars in millions)
Due in one year or less	$	112.0	$	110.8
Due after one year through five years	1,913.7		1,790.2
Due after five years through ten years	2,098.9		1,910.4
Due after ten years	12,629.4		10,523.2
Subtotal	16,754.0		14,334.6
Structured securities	6,630.2		6,018.8
Total fixed maturities, available for sale	$	23,384.2	$	20,353.4

Schedule of Investment Income

Net investment income consisted of the following (dollars in millions):


	2022		2021		2020
General account assets:
Fixed maturities	$	1,084.1	$	962.6	$	924.8
Equity securities	5.9		4.3		3.0
Mortgage loans	63.0		65.0		79.5
Policy loans	8.4		8.2		8.5
Other invested assets	38.0		124.8		84.0
Cash and cash equivalents	5.9		.3		2.6
Policyholder and other special-purpose portfolios:
Trading securities	7.7		7.2		28.1
Options related to fixed indexed products:
Option income (loss)	(6.3)		212.0		35.0
Change in value of options	(200.3)		8.9		4.5
Other special-purpose portfolios	35.8		52.4		75.9
Gross investment income	1,042.2		1,445.7		1,245.9
Less investment expenses	26.3		25.0		23.4
Net investment income	$	1,015.9	$	1,420.7	$	1,222.5

Schedule of Realized Gain (Loss) on Investments

The following table sets forth the total investment gains (losses) for the periods indicated (dollars in millions):


	2022		2021		2020
Realized investment gains (losses):
Gross realized gains on sales of fixed maturities, available for sale	$	99.8	$	51.6	$	48.6
Gross realized losses on sales of fixed maturities, available for sale	(104.0)		(20.4)		(53.7)
Equity securities, net	(8.3)		(2.9)		(3.3)
Other, net	(5.4)		(7.0)		(10.0)
Total realized investment gains (losses)	(17.9)		21.3		(18.4)
Change in allowance for credit losses and impairments of other investments (a)	(52.6)		12.2		(18.5)
Change in fair value of equity securities (b)	(2.9)		(7.3)		(1.8)



Other changes in fair value (c)	(62.0)		(7.1)		2.5
Other investment losses	(117.5)		(2.2)		(17.8)
Total investment gains (losses)	$	(135.4)	$	19.1	$	(36.2)

_________________

(a) Changes in the allowance for credit losses includes $(1.8) million, $11.4 million and $(5.2) million for the years ended December 31, 2022, 2021 and 2020, respectively, related to investments held by VIEs.

(b) Changes in the estimated fair value of equity securities (that are still held as of the end of the respective years) were $(7.3) million, $(7.8) million and $(1.7) million for the years ended December 31, 2022, 2021 and 2020, respectively.

(c) Changes in the estimated fair value of trading securities that we have elected the fair value option (that are still held as of the end of the respective years) were $(43.3) million, $(3.1) million and $0.4 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Summary of the Investments Sold at a Loss during 2022 Which had been Continuously in an Unrealized Loss Position

The following summarizes the investments sold at a loss during 2022 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions):


		At date of sale
	Number of issuers	Amortized cost		Fair value
Less than 6 months prior to sale	21	$	85.6	$	51.8
Greater than or equal to 6 months and less than 12 months prior to sale	3	6.1		4.2

		$	91.7	$	56.0

The following summarizes the investments in our portfolio rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2022 (dollars in millions):


	Number of issuers	Cost basis		Unrealized loss		Estimated fair value
Less than 6 months	6	$	47.5	$	(11.1)	$	36.4
Greater than or equal to 6 months and less than 12 months	5	33.6		(10.3)		23.3

Total		$	81.1	$	(21.4)	$	59.7


		At date of sale
	Number of issuers	Amortized cost		Fair value
Less than 6 months prior to sale	3	$	7.0	$	3.9
Greater than or equal to 6 months and less than 12 months prior to sale	2	1.7		.6

		$	8.7	$	4.5

The following summarizes the investments held by the VIEs rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis for the period indicated as of December 31, 2022 (dollars in millions):


	Number of issuers	Cost basis		Unrealized loss		Estimated fair value
Less than 6 months	5	$	13.2	$	(3.9)	$	9.3

Schedule of Investments with Unrealized Losses Classified By Contractual Maturity Date

The following table sets forth the amortized cost and estimated fair value of those fixed maturities, available for sale, with unrealized losses at December 31, 2022, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities frequently include provisions for periodic principal payments and permit periodic unscheduled payments.


	Amortized cost		Estimated fair value
	(Dollars in millions)
Due in one year or less	$	91.2	$	89.8
Due after one year through five years	1,741.9		1,615.5
Due after five years through ten years	1,845.3		1,649.8
Due after ten years	11,631.2		9,485.8
Subtotal	15,309.6		12,840.9
Structured securities	6,040.1		5,385.9
Total	$	21,349.7	$	18,226.8

Summary of the Unrealized Losses and Fair Value of Investments

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2022 (dollars in millions):


	Less than 12 months				12 months or greater				Total
Description of securities	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Corporate securities	$	2,830.8	$	(329.4)	$	370.4	$	(129.3)	$	3,201.2	$	(458.7)
United States Treasury securities and obligations of United States government corporations and agencies	134.4		(9.6)		21.9		(3.4)		156.3		(13.0)
States and political subdivisions	667.0		(124.8)		132.1		(58.5)		799.1		(183.3)
Foreign governments	35.0		(3.5)		2.1		(.3)		37.1		(3.8)
Asset-backed securities	914.0		(90.1)		258.1		(53.4)		1,172.1		(143.5)
Agency residential mortgage-backed securities	59.7		(.7)		—		—		59.7		(.7)
Non-agency residential mortgage-backed securities	861.6		(89.7)		335.4		(102.2)		1,197.0		(191.9)
Collateralized loan obligations	553.0		(27.4)		184.2		(12.2)		737.2		(39.6)
Commercial mortgage-backed securities	1,581.4		(160.0)		593.3		(112.3)		2,174.7		(272.3)
Total fixed maturities, available for sale	$	7,636.9	$	(835.2)	$	1,897.5	$	(471.6)	$	9,534.4	$	(1,306.8)


	Less than 12 months				12 months or greater				Total
Description of securities	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Corporate securities	$	87.8	$	(.4)	$	9.2	$	(.1)	$	97.0	$	(.5)
United States Treasury securities and obligations of United States government corporations and agencies	5.7		—		18.7		(.9)		24.4		(.9)
States and political subdivisions	47.3		(.4)		—		—		47.3		(.4)

Asset-backed securities	210.8		(2.4)		17.8		(.7)		228.6		(3.1)

Non-agency residential mortgage-backed securities	380.8		(3.1)		2.3		—		383.1		(3.1)
Collateralized loan obligations	271.5		(1.2)		32.8		(.1)		304.3		(1.3)
Commercial mortgage-backed securities	694.7		(7.6)		41.4		(1.6)		736.1		(9.2)
Total fixed maturities, available for sale	$	1,698.6	$	(15.1)	$	122.2	$	(3.4)	$	1,820.8	$	(18.5)

Summary of Changes in the Allowance for Current Expected Credit Losses Related to Investments Held by Vies

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three years ended December 31, 2022 (dollars in millions):


	Corporate securities		States and political subdivisions		Foreign governments		Asset-backed securities		Non-agency residential mortgage-backed securities		Total
Allowance at January 1, 2020	$	2.1	$	—	$	—	$	—	$	—	$	2.1
Additions for securities for which credit losses were not previously recorded	23.6		.7		.1		.3		1.0		25.7
Additions for purchased securities with deteriorated credit	—		—		—		—		—		—
Additions (reductions) for securities where an allowance was previously recorded	(22.3)		(.4)		(.1)		(.3)		(1.0)		(24.1)
Reduction for securities sold during the period	(1.5)		—		—		—		—		(1.5)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded	—		—		—		—		—		—
Write-offs	—		—		—		—		—		—
Recoveries of previously written-off amount	—		—		—		—		—		—
Allowance at December 31, 2020	1.9		.3		—		—		—		2.2
Additions for securities for which credit losses were not previously recorded	6.1		.1		.1		—		—		6.3
Additions for purchased securities with deteriorated credit	—		—		—		—		—		—
Additions (reductions) for securities where an allowance was previously recorded	.2		(.4)		.2		—		—		—
Reduction for securities sold during the period	(.8)		—		(.1)		—		—		(.9)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded	—		—		—		—		—		—
Write-offs	—		—		—		—		—		—
Recoveries of previously written-off amount	—		—		—		—		—		—
Allowance at December 31, 2021	7.4		—		.2		—		—		7.6
Additions for securities for which credit losses were not previously recorded	48.9		.7		.5		.3		—		50.4
Additions for purchased securities with deteriorated credit	—		—		—		—		—		—
Additions (reductions) for securities where an allowance was previously recorded	10.3		.3		(.3)		—		—		10.3
Reduction for securities sold during the period	(12.2)		(.1)		—		—		—		(12.3)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded	—		—		—		—		—		—
Write-offs	—		—		—		—		—		—
Recoveries of previously written-off amount	—		—		—		—		—		—
Allowance at December 31, 2022	$	54.4	$	.9	$	.4	$	.3	$	—	$	56.0

The following table summarizes changes in the allowance for credit losses related to investments held by VIEs for the three years ended December 31, 2022 (dollars in millions):


	Corporate securities
Allowance at January 1, 2020	$	9.9
Additions for securities for which credit losses were not previously recorded	26.6
Additions for purchased securities with deteriorated credit	—
Additions (reductions) for securities where an allowance was previously recorded	(15.7)
Reduction for securities sold during the period	(5.7)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded	—
Write-offs	—
Recoveries of previously written-off amount	—
Allowance at December 31, 2020	15.1
Additions for securities for which credit losses were not previously recorded	1.3
Additions for purchased securities with deteriorated credit	—
Additions (reductions) for securities where an allowance was previously recorded	(2.9)
Reduction for securities sold during the period	(9.8)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded	—
Write-offs	—
Recoveries of previously written-off amount	—
Allowance at December 31, 2021	3.7
Additions for securities for which credit losses were not previously recorded	7.8
Additions for purchased securities with deteriorated credit	—
Additions (reductions) for securities where an allowance was previously recorded	(3.0)
Reduction for securities sold during the period	(3.0)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded	—
Write-offs	—
Recoveries of previously written-off amount	—
Allowance at December 31, 2022	$	5.5

Schedule of Structured Securities

The amortized cost and estimated fair value of structured securities at December 31, 2022, summarized by type of security, were as follows (dollars in millions):


			Estimated fair value
Type	Amortized cost		Amount		Percent of fixed maturities
Asset-backed securities	$	1,435.7	$	1,287.0	6.3	%
Agency residential mortgage-backed securities	174.3		175.0		.9
Non-agency residential mortgage-backed securities	1,700.4		1,548.5		7.6
Collateralized loan obligations	825.2		785.9		3.9
Commercial mortgage-backed securities	2,494.6		2,222.4		10.9

Total structured securities	$	6,630.2	$	6,018.8	29.6	%

Summary of Carrying Value and Estimated Fair Value of Outstanding Commercial Mortgage Loans and Underlying Collateral

The following table provides the amortized cost by year of origination and estimated fair value of our outstanding commercial mortgage loans and the underlying collateral as of December 31, 2022 (dollars in millions):


															Estimated fair value
Loan-to-value ratio (a)	2022		2021		2020		2019		2018		Prior		Total amortized cost		Mortgage loans		Collateral
Less than 60%	$	234.1	$	114.7	$	43.5	$	75.4	$	66.5	$	476.3	$	1,010.5	$	889.8	$	4,027.6
60% to less than 70%	47.2		13.2		—		—		8.2		45.0		113.6		104.7		170.7
70% to less than 80%	33.0		22.6		—		—		—		—		55.6		47.2		72.3
80% to less than 90%	—		—		—		—		—		42.5		42.5		34.5		52.0
90% or greater	—		—		—		—		—		10.0		10.0		6.7		10.7
Total	$	314.3	$	150.5	$	43.5	$	75.4	$	74.7	$	573.8	$	1,232.2	$	1,082.9	$	4,333.3

________________

(a)Loan-to-value ratios are calculated as the ratio of: (i) the amortized cost of the commercial mortgage loans; to (ii) the estimated fair value of the underlying collateral.

Schedule of Allowance For Credit Losses

The following table summarizes changes in the allowance for credit losses related to mortgage loans for the three years ended December 31, 2022 (dollars in millions):


	Mortgage loans
Allowance for credit losses at January 1, 2020	$	6.7
Current period provision for expected credit losses	5.1
Initial allowance recognized for purchased financial assets with credit deterioration	—
Write-offs charged against the allowance	—
Recoveries of amounts previously written off	—
Allowance for credit losses at December 31, 2020	11.8
Current period provision for expected credit losses	(6.2)
Initial allowance recognized for purchased financial assets with credit deterioration	—
Write-offs charged against the allowance	—
Recoveries of amounts previously written off	—
Allowance for credit losses at December 31, 2021	5.6
Current period provision for expected credit losses	2.4
Initial allowance recognized for purchased financial assets with credit deterioration	—
Write-offs charged against the allowance	—
Recoveries of amounts previously written off	—
Allowance for credit losses at December 31, 2022	$	8.0