Reinsurance (Tables)

12 Months Ended

Dec. 31, 2020

The following table provides details of the reinsurance recoverables balance as of the dates indicated:


	December 31,
	2020		2019
Ceded future policyholder benefits and expenses	$	2,199.8	$	2,192.1
Ceded unearned premium	14.4		18.3
Ceded claims and benefits payable	1,012.5		1,044.7
Ceded paid losses	0.8		5.0
Total	$	3,227.5	$	3,260.1

Schedule of Reinsurance Recoverables

The following table provides the reinsurance recoverable as of December 31, 2020 grouped by A.M. Best financial strength ratings:


A. M. Best Rating of Reinsurer	Ceded future policyholder benefits and expense		Ceded unearned premiums		Ceded claims and benefits payable		Ceded paid losses		Total
A++ or A+	$	1,659.5	$	13.9	$	992.9	$	2.1	$	2,668.4
A or A–	59.4		0.5		2.7		—		62.6
B++ or B+	480.5		—		16.9		0.3		497.7
Not rated	0.4		—		—		—		0.4
Total	2,199.8		14.4		1,012.5		2.4		3,229.1
Less Allowance:	—		—		—		(1.6)		(1.6)
Total Reinsurance recoverable	$	2,199.8	$	14.4	$	1,012.5	$	0.8	$	3,227.5

The following table presents the reinsurance recoverable from John Hancock, Sun Life, Talcott Resolution and other reinsurers as of December 31, 2020 and 2019.


Reinsurer	December 31, 2020		December 31, 2019
John Hancock	$	2,169.7	$	2,106.0
Sun Life	497.0		579.9
Talcott Resolution	497.7		509.1
Other reinsurers	63.1		65.1
Total	$	3,227.5	$	3,260.1

Schedule of Effect of Reinsurance on Premiums Earned and Benefits Incurred

The effect of reinsurance on premiums earned and benefits incurred was as follows for the period indicated:


	Years Ended December 31,
	2020						2019						2018
	Long Duration		Short Duration		Total		Long Duration		Short Duration		Total		Long Duration		Short Duration		Total
Direct earned premiums	$	141.2	$	54.5	$	195.7	$	150.2	$	213.6	$	363.8	$	182.2	$	568.2	$	750.4
Premiums assumed	3.0		—		3.0		2.6		1.3		3.9		3.2		1.4		4.6
Premiums ceded	(139.6)		(54.5)		(194.1)		(148.4)		(214.2)		(362.6)		(180.6)		(569.6)		(750.2)
Net earned premiums	$	4.6	$	—	$	4.6	$	4.4	$	0.7	$	5.1	$	4.8	$	—	$	4.8
Direct policyholder benefits	$	459.0	$	66.1	$	525.1	$	505.0	$	144.0	$	649.0	$	399.6	$	363.7	$	763.3
Policyholder benefits assumed	13.4		0.1		13.5		12.7		(0.1)		12.6		14.4		—		14.4
Policyholder benefits ceded	(416.1)		(66.1)		(482.2)		(461.3)		(143.7)		(605.0)		(350.9)		(363.7)		(714.6)
Net policyholder benefits	$	56.3	$	0.1	$	56.4	$	56.4	$	0.2	$	56.6	$	63.1	$	—	$	63.1