BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Segment Reporting Information by Segment

Operating information by segment is as follows (dollars in millions):


	2022		2021		2020
Revenues:
Annuity:
Insurance policy income	$	23.1	$	19.6	$	18.8
Net investment income	466.8		462.4		465.1
Total annuity revenues	489.9		482.0		483.9
Health:
Insurance policy income	1,617.3		1,661.5		1,699.5
Net investment income	287.6		287.7		282.3
Total health revenues	1,904.9		1,949.2		1,981.8
Life:
Insurance policy income	859.4		842.3		793.0
Net investment income	146.2		144.7		139.6
Total life revenues	1,005.6		987.0		932.6
Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances)	(205.3)		219.8		37.8
Investment income not allocated to product lines	272.1		273.3		258.5
Fee revenue and other income:
Fee income	169.3		147.6		106.0
Amounts netted in expenses not allocated to product lines	30.5		17.2		6.9
Total segment revenues	$	3,667.0	$	4,076.1	$	3,807.5

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	2022		2021		2020
Expenses:
Annuity:
Insurance policy benefits	$	124.3	$	(14.5)	$	(93.7)
Interest credited	178.1		149.1		170.6
Amortization and non-deferred commissions	26.4		77.1		110.3
Total annuity expenses	328.8		211.7		187.2
Health:
Insurance policy benefits	1,241.0		1,266.3		1,329.7
Amortization and non-deferred commissions	186.6		189.9		192.3
Total health expenses	1,427.6		1,456.2		1,522.0
Life:
Insurance policy benefits	585.2		613.5		570.0
Interest credited	47.4		44.4		44.5
Amortization, non-deferred commissions and advertising expense	200.1		178.7		153.1
Total life expenses	832.7		836.6		767.6
Allocated expenses	596.6		566.5		557.7
Expenses not allocated to product lines	71.3		95.4		90.7
Market value changes of options credited to fixed indexed annuity and life policyholders	(205.3)		219.8		37.8
Amounts netted in investment income not allocated to product lines:
Interest expense	96.0		72.2		76.4
Interest credited	28.5		2.2		—
Amortization	1.5		.1		—
Other expenses	(13.4)		16.6		15.0
Expenses netted in fee revenue:
Commissions and other operating expenses	145.6		128.2		89.3
Total segment expenses	3,309.9		3,605.5		3,343.7
Pre-tax measure of profitability:
Annuity margin	161.1		270.3		296.7
Health margin	477.3		493.0		459.8
Life margin	172.9		150.4		165.0
Total insurance product margin	811.3		913.7		921.5
Allocated expenses	(596.6)		(566.5)		(557.7)
Income from insurance products	214.7		347.2		363.8
Fee income	23.7		19.4		16.7
Investment income not allocated to product lines	159.5		184.5		167.1
Expenses not allocated to product lines	(40.8)		(80.5)		(83.8)
Operating earnings before taxes	357.1		470.6		463.8
Income tax expense on operating income	83.2		105.0		101.5
Net operating income	$	273.9	$	365.6	$	362.3

Reconciliation of Operating Profit (Loss) From Segments to Consolidated

A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions):




	2022		2021		2020
Total segment revenues	$	3,667.0	$	4,076.1	$	3,807.5
Total investment gains (losses)	(135.4)		19.1		(36.2)
Revenues related to earnings attributable to VIEs	45.2		27.0		35.5
Fee revenue related to transition services agreement	—		—		14.3
Consolidated revenues	3,576.8		4,122.2		3,821.1

Total segment expenses	3,309.9		3,605.5		3,343.7
Insurance policy benefits - fair value changes in embedded derivative liabilities	(340.9)		(90.1)		99.0
Amortization related to fair value changes in embedded derivative liabilities	93.7		22.9		(19.9)
Amortization related to investment gains (losses)	(3.4)		1.7		(2.4)
Expenses attributable to VIEs	43.0		24.4		33.8
Fair value changes related to agent deferred compensation plan	(48.9)		(8.9)		16.3

Expenses related to transition services agreement	—		—		8.8
Other expenses	6.1		(1.0)		(2.5)
Consolidated expenses	3,059.5		3,554.5		3,476.8
Income before tax	517.3		567.7		344.3
Income tax expense (benefit):
Income tax expense on period income	120.5		126.7		76.5
Valuation allowance for deferred tax assets and other tax items	—		—		(34.0)
Net income	$	396.8	$	441.0	$	301.8

Schedule of Balance Sheet Information, by Segment

Segment balance sheet information was as follows (dollars in millions):


	2022		2021
Assets:
Annuity	$	11,323.9	$	13,288.6
Health	9,221.6		10,558.7
Life	4,090.1		4,686.2
Investments not allocated to product lines	8,203.0		7,093.0
Assets of our non-life companies included in the fee income segment	207.7		194.0
Assets of our other non-life companies	292.9		383.9
Total assets	$	33,339.2	$	36,204.4
Liabilities:
Annuity	$	12,367.0	$	12,283.3
Health	9,727.4		9,610.0
Life	4,317.9		4,279.5
Liabilities associated with investments not allocated to product lines (a)	5,293.8		4,502.9
Liabilities of our non-life companies included in the fee income segment	23.5		25.0
Liabilities of our other non-life companies	208.8		244.0
Total liabilities	$	31,938.4	$	30,944.7

____________

(a) Includes investment borrowings, policyholder account balances related to funding agreements, borrowings related to VIEs and notes payable - direct corporate obligations.

Schedule of Selected Financial Information, by Segment

The following table presents selected financial information of our segments (dollars in millions):


Segment	Present value of future profits		Deferred acquisition costs		Insurance liabilities
2022
Annuity	$	8.5	$	655.1	$	12,104.9
Health	189.7		636.4		9,642.1
Life	14.0		615.9		4,203.8
Amounts related to funding agreements included in investments not allocated to product lines	—		6.0		1,410.8
Total	$	212.2	$	1,913.4	$	27,361.6
2021
Annuity	$	—	$	126.4	$	11,956.2
Health	205.9		509.0		9,508.7
Life	16.7		473.3		4,145.9
Amounts related to funding agreements included in investments not allocated to product lines	—		3.3		502.0
Total	$	222.6	$	1,112.0	$	26,112.8