Long-Duration Insurance Contracts

9 Months Ended

Sep. 30, 2025

Insurance [Abstract]

Long-Duration Insurance Contracts

Long-Duration Insurance Contracts

Liability for Future Policy Benefits

As of and for the three and nine months ended September 30, 2025 and 2024, the Company updated the net premium ratio when updating for actual historical experience for the quarter. In 2025, the Company revised the timing of its annual comprehensive assumption review, moving it from the fourth quarter to the third quarter to better align with industry practice. Accordingly, future cash flow assumptions were reviewed and updated in the third quarter of 2025. In the prior year, assumptions were reviewed in the third quarter but not changed, with the annual update completed in the fourth quarter of 2024.

The following tables summarize balances and changes in LFPB for traditional and limited-pay contracts.

The balances of and changes in LFPB as of and for the three months ended September 30, 2025 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 July 1, 2025	$	234.4	$	253.2	$	67.6	$	34.2	$	186.2	$	—
July 1, 2025 balance at original discount rate	264.7		273.3		65.4		36.1		216.6		—
Effect of:
Change in cash flow assumptions	6.3		(16.5)		0.7		0.4		(2.8)		—
Actual variances from expected experience	—		0.3		0.3		0.4		1.1		—
Adjusted balance at July 1, 2025	271.0		257.1		66.4		36.9		214.9		—
Issuances(3)	2.1		5.8		—		0.9		4.9		0.5
Interest accruals(4)	2.2		2.8		1.0		0.4		1.7		—
Net premiums collected(5)	(5.3)		(6.3)		(1.8)		(1.2)		(6.3)		(0.5)
September 30, 2025 balance at original discount rate	270.0		259.4		65.6		37.0		215.2		—
Effect of changes in discount rate assumptions	(27.9)		(13.8)		3.1		(1.6)		(26.6)		—
Balance at September 30, 2025	242.1		245.6		68.7		35.4		188.6		—
Present value of expected future policy benefits:
Balance at July 1, 2025	514.0		394.2		810.7		88.8		384.7		97.1
July 1, 2025 balance at original discount rate	622.1		442.4		771.8		116.4		476.8		105.2
Effect of:
Changes in cash flow assumptions	5.9		(20.7)		1.7		0.2		(5.3)		—
Actual variances from expected experience	(0.1)		0.6		0.5		0.5		1.4		—
Adjusted balance at July 1, 2025	627.9		422.3		774.0		117.1		472.9		105.2
Issuances	2.1		5.9		—		0.9		4.9		0.5
Interest accruals	5.3		4.2		11.4		1.2		3.4		1.0
Benefit payments(6)	(5.9)		(6.6)		(16.5)		(1.7)		(15.0)		(2.5)
September 30, 2025 balance at original discount rate	629.4		425.8		768.9		117.5		466.2		104.2
Effect of changes in discount rate assumptions	(101.2)		(38.1)		52.1		(26.4)		(83.2)		(6.7)
Balance at September 30, 2025	528.2		387.7		821.0		91.1		383.0		97.5
Net liability for future policy benefits	286.0		142.1		752.3		55.7		194.5		97.5
Less: Reinsurance recoverable	(60.7)		(20.2)		(0.8)		(1.3)		(4.9)		(3.9)
Net liability for future policy benefits, after reinsurance recoverable	225.3		121.9		751.5		54.4		189.6		93.6
Impact of flooring on net liability for future policy benefits	—		—		—		—		—		—
Net liability for future policy benefits at September 30, 2025	$	225.3	$	121.9	$	751.5	$	54.4	$	189.6	$	93.6

(1) Experience Life contains both whole life and term elements.

(2) As of September 30, 2025, the net LFPB for Supplemental Health was $67.3 million for cancer, $18.3 million for accident, $21.3 million for disability and $82.7 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 nine months ended September 30, 2025 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, 2025	$	229.1	$	245.9	$	66.6	$	34.2	$	179.9	$	—
January 1, 2025 balance at original discount rate	263.2		271.2		65.4		36.8		214.6		—
Effect of:
Change in cash flow assumptions	6.3		(16.5)		0.7		0.4		(2.8)		—
Actual variances from expected experience	1.3		(1.7)		1.9		0.2		(0.4)		—
Adjusted balance at January 1, 2025	270.8		253.0		68.0		37.4		211.4		—
Issuances(3)	8.0		17.5		—		1.9		17.6		1.8
Interest accruals(4)	6.3		8.4		2.8		1.1		5.2		—
Net premiums collected(5)	(15.1)		(19.5)		(5.2)		(3.4)		(19.0)		(1.8)
September 30, 2025 balance at original discount rate	270.0		259.4		65.6		37.0		215.2		—
Effect of changes in discount rate assumptions	(27.9)		(13.8)		3.1		(1.6)		(26.6)		—
Balance at September 30, 2025	242.1		245.6		68.7		35.4		188.6		—
Present value of expected future policy benefits:
Balance at January 1, 2025	504.3		377.8		813.2		86.2		383.4		97.3
January 1, 2025 balance at original discount rate	617.4		433.2		782.8		114.3		482.8		107.3
Effect of:
Changes in cash flow assumptions	5.9		(20.7)		1.7		0.2		(5.3)		—
Actual variances from expected experience	1.9		(2.0)		3.7		0.4		(1.7)		—
Adjusted balance at January 1, 2025	625.2		410.5		788.2		114.9		475.8		107.3
Issuances	8.0		17.7		—		1.9		17.6		1.8
Interest accruals	15.7		12.8		34.4		3.4		10.4		3.1
Benefit payments(6)	(19.5)		(15.2)		(53.7)		(2.7)		(37.6)		(8.0)
September 30, 2025 balance at original discount rate	629.4		425.8		768.9		117.5		466.2		104.2
Effect of changes in discount rate assumptions	(101.2)		(38.1)		52.1		(26.4)		(83.2)		(6.7)
Balance at September 30, 2025	528.2		387.7		821.0		91.1		383.0		97.5
Net liability for future policy benefits	286.0		142.1		752.3		55.7		194.5		97.5
Less: Reinsurance recoverable	(60.7)		(20.2)		(0.8)		(1.3)		(4.9)		(3.9)
Net liability for future policy benefits, after reinsurance recoverable	225.3		121.9		751.5		54.4		189.6		93.6
Impact of flooring on net liability for future policy benefits	—		—		—		—		—		—
Net liability for future policy benefits at September 30, 2025	$	225.3	$	121.9	$	751.5	$	54.4	$	189.6	$	93.6

(1) Experience Life contains both whole life and term elements.

(2) As of September 30, 2025, the net LFPB for Supplemental Health was $67.3 million for cancer, $18.3 million for accident, $21.3 million for disability and $82.7 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, 2024 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, 2024	$	223.2	$	240.0	$	71.7	$	32.2	$	182.0	$	—
January 1, 2024 balance at original discount rate	247.1		256.6		67.0		33.9		213.4		—
Effect of:
Change in cash flow assumptions	13.8		4.6		1.5		2.2		(5.2)		—
Actual variances from expected experience	3.2		(0.5)		—		—		2.9		—
Adjusted balance at January 1, 2024	264.1		260.7		68.5		36.1		211.1		—
Issuances(3)	12.6		25.2		—		4.0		20.9		2.8
Interest accruals(4)	7.6		10.7		3.7		1.4		6.8		—
Net premiums collected(5)	(21.1)		(25.4)		(6.8)		(4.7)		(24.2)		(2.8)
December 31, 2024 balance at original discount rate	263.2		271.2		65.4		36.8		214.6		—
Effect of changes in discount rate assumptions	(34.1)		(25.3)		1.2		(2.6)		(34.7)		—
Balance at December 31, 2024	229.1		245.9		66.6		34.2		179.9		—
Present value of expected future policy benefits:
Balance at January 1, 2024	522.0		370.1		883.0		89.6		427.6		104.2
January 1, 2024 balance at original discount rate	592.1		405.4		797.5		105.6		517.9		111.4
Effect of:
Changes in cash flow assumptions	13.7		5.6		2.2		2.4		(6.5)		—
Actual variances from expected experience	3.4		(1.0)		0.2		—		2.5		0.2
Adjusted balance at January 1, 2024	609.2		410.0		799.9		108.0		513.9		111.6
Issuances	12.6		25.5		—		4.0		20.9		2.8
Interest accruals	19.8		16.1		46.7		4.2		14.4		4.3
Benefit payments(6)	(24.2)		(18.4)		(63.8)		(1.9)		(66.4)		(11.4)
December 31, 2024 balance at original discount rate	617.4		433.2		782.8		114.3		482.8		107.3
Effect of changes in discount rate assumptions	(113.1)		(55.4)		30.4		(28.1)		(99.4)		(10.0)
Balance at December 31, 2024	504.3		377.8		813.2		86.2		383.4		97.3
Net liability for future policy benefits	275.2		131.8		746.6		52.1		203.5		97.3
Less: Reinsurance recoverable	(60.2)		(19.3)		(0.9)		(1.4)		(4.7)		(3.5)
Net liability for future policy benefits, after reinsurance recoverable	215.0		112.5		745.7		50.7		198.8		93.8
Impact of flooring on net liability for future policy benefits	—		—		—		—		—		—
Net liability for future policy benefits at December 31, 2024	$	215.0	$	112.5	$	745.7	$	50.7	$	198.8	$	93.8

(1) Experience Life contains both whole life and term elements.

(2) As of December 31, 2024, the net LFPB for Supplemental Health was $72.2 million for cancer, $18.8 million for accident, $21.4 million for disability and $86.4 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)	September 30, 2025		December 31, 2024
Whole life	$	286.0	$	275.2
Term life	142.1		131.8
Experience life	752.3		746.6
Limited-pay whole life	55.7		52.1
Supplemental health	194.5		203.5
SPIA (life contingent)	97.5		97.3
Limited-pay whole life DPL	5.9		5.2
SPIA (life contingent) DPL	1.5		1.5
Reconciling items(1)	101.3		109.6
Total	$	1,636.8	$	1,622.8

(1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves.

The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss):

($ in millions)	Gross premiums or assessments				Gross premiums or assessments
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Whole life	$	7.1	$	7.1	$	21.5	$	20.9
Term life	12.4		11.1		35.2		33.3
Experience life	7.2		8.5		21.9		23.9
Limited-pay whole life	1.9		1.8		5.3		5.2
Supplemental health	31.3		30.3		93.4		90.7
SPIA (life contingent)	0.5		1.3		1.8		3.0
Total	$	60.4	$	60.1	$	179.1	$	177.0

($ in millions)	Interest expense				Interest expense
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Whole life	$	3.1	$	3.1	$	9.4	$	9.1
Term life	1.5		1.4		4.4		4.0
Experience life	10.5		10.7		31.6		32.3
Limited-pay whole life	0.8		0.7		2.3		2.1
Supplemental health	1.7		1.9		5.2		5.8
SPIA (life contingent)	1.0		1.0		3.1		3.2
Total	$	18.6	$	18.8	$	56.0	$	56.5

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 September 30, 2025				As of December 31, 2024
	Undiscounted		Discounted		Undiscounted		Discounted
Whole life
Expected future gross premiums	$	552.0	$	362.8	$	524.0	$	350.5
Expected future benefits and expenses	1,347.4		629.4		1,272.9		617.4
Term life
Expected future gross premiums	689.2		455.5		712.1		464.2
Expected future benefits and expenses	728.1		425.8		736.2		433.2
Experience Life
Expected future gross premiums	461.9		261.1		497.8		279.3
Expected future benefits and expenses	1,549.5		768.9		1,639.0		782.8
Limited-pay whole life
Expected future gross premiums	75.6		55.9		73.6		54.7
Expected future benefits and expenses	335.2		117.5		307.2		114.3
Supplemental health
Expected future gross premiums	1,607.5		1,162.1		1,595.3		1,165.4
Expected future benefits and expenses	675.5		466.2		684.6		482.8
SPIA (life contingent)
Expected future gross premiums	—		—		—		—
Expected future benefits and expenses	146.4		104.2		150.7		107.3

For the nine months ended September 30, 2025 and for the year ended December 31, 2024, 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 periods.

The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB:

	September 30, 2025
	Whole Life		Term Life	Experience Life		Limited-Pay Whole Life		Supplemental Health		SPIA (life contingent)
Mortality / Morbidity
Actual experience	0.8	%	0.1% - 0.7%	1.8	%	0.5	%	27.1	%	N.M.
Expected experience	0.8	%	0.1% - 1.3%	1.9	%	0.3	%	26.5	%	N.M.
Lapses
Actual experience	3.5	%	3.8% - 13.6%	3.8	%	3.3	%	10.7	%	N.M.
Expected experience	3.8	%	5.1% - 13.4%	3.0	%	4.0	%	10.2	%	N.M.
	September 30, 2024
	Whole Life		Term Life	Experience Life		Limited-Pay Whole Life		Supplemental Health		SPIA (life contingent)
Mortality / Morbidity
Actual experience	0.7	%	0.1% - 0.3%	1.9	%	0.2	%	28.9	%	N.M.
Expected experience	0.8	%	0.1% - 0.8%	1.7	%	0.3	%	26.3	%	N.M.
Lapses
Actual experience	3.0	%	3.7% - 28.6%	2.9	%	3.9	%	9.4	%	N.M.
Expected experience	4.4	%	5.4% - 12.8%	3.0	%	4.7	%	9.7	%	N.M.

The following table provides the weighted-average durations of LFPB, in years:

	As of September 30,
	2025	2024
Whole life	20.3	17.7
Term life	16.2	16.4
Experience life	9.6	10.2
Limited-pay whole life	25.5	21.5
Supplemental health	11.7	11.3
SPIA (life contingent)	7.4	8.0

The following table provides ranges of the weighted-average interest rates for LFPB:

	As of September 30,
	2025		2024
Whole life
Interest accretion rate	1.7% - 4.8%		1.7% - 4.9%
Current discount rate	4.7% - 5.5%		4.2% - 5.1%
Term life
Interest accretion rate	4.2% - 4.2%		4.2% - 4.2%
Current discount rate	5.1% - 5.3%		4.8% - 4.9%
Experience life
Interest accretion rate	6.1	%	6.1	%
Current discount rate	5.3	%	5.0	%
Limited-pay whole life
Interest accretion rate	4.0	%	4.0	%
Current discount rate	5.7	%	5.2	%
Supplemental health
Interest accretion rate	1.7% - 2.8%		1.7% - 2.7%
Current discount rate	5.3% - 5.5%		5.2% - 5.0%
SPIA (life contingent)
Interest accretion rate	1.7% - 4.1%		1.7% - 4.1%
Current discount rate	5.0% - 5.1%		4.8% - 4.8%

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)	Three Months Ended September 30, 2025
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at July 1, 2025	$	82.3		$	56.5		$	4,495.1		$	388.6		$	27.9
Premiums received(1)	$	5.8		$	(0.2)		$	61.3		$	3.1		$	0.3
Surrenders and withdrawals(2)	(0.7)			(0.9)			(77.0)			(9.3)			(0.1)
Benefit payments(3)	—			(0.3)			(14.9)			(0.6)			(0.9)
Net transfers from (to) separate account	(0.1)			—			3.6			(0.2)			—
Interest credited(4)	1.2			0.7			42.6			4.0			0.2
Other	(1.3)			(0.1)			3.9			(3.3)			—
Balance at September 30, 2025	$	87.2		$	55.7		$	4,514.6		$	382.3		$	27.4
Weighted-average crediting rate	5.8		%	5.1		%	3.9		%	4.2		%	2.9		%
Net amount at risk(5)	$	—		$	—		$	23.9		$	—		$	—
Cash surrender value	$	66.6		$	55.1		$	4,470.7		$	377.2		$	27.0
($ in millions)	Three Months Ended September 30, 2024
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at July 1, 2024	$	65.2		$	59.4		$	4,509.5		$	426.6		$	30.4
Premiums received(1)	$	3.5		$	(0.2)		$	59.8		$	3.7		$	0.5
Surrenders and withdrawals(2)	(0.9)			(0.8)			(85.3)			(12.1)			—
Benefit payments(3)	—			(0.3)			(12.6)			(1.7)			(1.2)
Net transfers from (to) separate account	(0.2)			—			8.8			(0.6)			—
Interest credited(4)	0.6			0.7			42.1			2.9			0.2
Other	(0.8)			—			3.3			(5.2)			0.2
Balance at September 30, 2024	$	67.4		$	58.8		$	4,525.6		$	413.6		$	30.1
Weighted-average crediting rate	3.7		%	4.9		%	3.8		%	2.8		%	2.7		%
Net amount at risk(5)	$	—		$	—		$	29.0		$	—		$	—
Cash surrender value	$	49.1		$	58.2		$	4,483.6		$	406.9		$	29.6

(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.

($ in millions)	Nine Months Ended September 30, 2025
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at January 1, 2025	$	72.9		$	58.0		$	4,508.4		$	409.5		$	28.6
Premiums received(1)	$	16.7		$	(0.6)		$	151.3		$	10.7		$	1.7
Surrenders and withdrawals(2)	(1.5)			(2.7)			(247.0)			(33.7)			(0.3)
Benefit payments(3)	—			(1.0)			(58.1)			(3.0)			(3.2)
Net transfers from (to) separate account	(0.3)			—			23.8			(0.8)			—
Interest credited(4)	3.0			2.1			126.2			10.2			0.7
Other	(3.6)			(0.1)			10.0			(10.6)			(0.1)
Balance at September 30, 2025	$	87.2		$	55.7		$	4,514.6		$	382.3		$	27.4
Weighted-average crediting rate	5.1		%	5.0		%	3.8		%	3.5		%	3.6		%
Net amount at risk(5)	$	—		$	—		$	23.9		$	—		$	—
Cash surrender value	$	66.6		$	55.1		$	4,470.7		$	377.2		$	27.0
($ in millions)	Nine Months Ended September 30, 2024
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at January 1, 2024	$	57.8		$	61.2		$	4,556.0		$	449.0		$	32.6
Premiums received(1)	$	12.3		$	(0.5)		$	151.6		$	11.4		$	1.4
Surrenders and withdrawals(2)	(1.7)			(2.9)			(283.9)			(38.9)			(0.9)
Benefit payments(3)	—			(1.2)			(49.5)			(3.3)			(3.9)
Net transfers from (to) separate account	(0.3)			—			17.0			(2.0)			—
Interest credited(4)	2.2			2.2			125.1			8.8			0.7
Other	(2.9)			—			9.3			(11.4)			0.2
Balance at September 30, 2024	$	67.4		$	58.8		$	4,525.6		$	413.6		$	30.1
Weighted-average crediting rate	4.8		%	5.0		%	3.7		%	2.8		%	3.1		%
Net amount at risk(5)	$	—		$	—		$	29.0		$	—		$	—
Cash surrender value	$	49.1		$	58.2		$	4,483.6		$	406.9		$	29.6

(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)	September 30, 2025		December 31, 2024
Indexed universal life	$	87.2	$	72.9
Experience Life	55.7		58.0
Fixed account annuities	4,514.6		4,508.4
Fixed indexed account annuities	382.3		409.5
SPIA (non-life contingent)	27.4		28.6
Reconciling items(1)	24.8		22.9
Total	$	5,092.0	$	5,100.3

(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)	September 30, 2025
	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%	$	9.0	$	10.8	$	310.4	$	425.7	$	755.8
Equal to 2% but less than 3%	70.4		145.6		121.0		166.3		503.4
Equal to 3% but less than 4%	571.8		10.0		22.4		78.8		683.0
Equal to 4% but less than 5%	2,565.2		—		—		—		2,565.2
5% or higher	79.8		—		—		—		79.8
Total	$	3,296.2	$	166.4	$	453.8	$	670.8	$	4,587.2
($ in millions)	December 31, 2024
	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%	$	15.9	$	77.3	$	400.4	$	304.0	$	797.6
Equal to 2% but less than 3%	94.5		122.2		97.9		134.8		449.4
Equal to 3% but less than 4%	545.6		43.3		13.3		51.2		653.4
Equal to 4% but less than 5%	2,600.0		—		—		—		2,600.0
5% or higher	81.8		—		—		—		81.8
Total	$	3,337.8	$	242.8	$	511.6	$	490.0	$	4,582.2

(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
	September 30, 2025		December 31, 2024
Balance, beginning of year	$	3,708.8	$	3,294.1
Deposits	218.8		266.2
Withdrawals	(220.6)		(290.3)
Net transfers	(23.0)		(21.1)
Fees and charges	(41.6)		(53.3)
Market appreciation (depreciation)	445.9		513.2
Other	—		—
Balance, end of period	$	4,088.3	$	3,708.8

(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 three and nine months ended September 30, 2025 and 2024, respectively:

($ in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Balance, beginning of period	$	(6.7)	$	(6.2)	$	(6.8)	$	(3.9)
Balance, beginning of period, before effects of changes in the instrument-specific credit risk	(7.0)		(6.8)		(7.4)		(4.5)
Changes in market risk benefits(1)	(2.5)		0.3		(2.1)		(2.0)
Balance, end of period(2)	$	(9.5)	$	(6.5)	$	(9.5)	$	(6.5)
Effect of changes in the instrument-specific credit risk	0.2		0.8		0.2		0.8
Balance, end of period	$	(9.3)	$	(5.7)	$	(9.3)	$	(5.7)
Net amount at risk(3)	$	12.8	$	15.1	$	12.8	$	15.1
Weighted-average attained age of contract holders	62		62		62		62

(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 September 30, 2025						As of December 31, 2024
	(Asset)		Liability		Net		(Asset)		Liability		Net
Deferred variable annuities	$	(10.6)	$	1.2	$	(9.3)	$	(8.8)	$	2.0	$	(6.8)

Deferred Acquisition Costs

The following tables roll-forward DAC for the periods indicated:

($ in millions)	Three Months Ended September 30, 2025
	Whole Life		Term Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total Annuities
Balance, beginning of period	$	24.6	$	34.8	$	5.4	$	8.1	$	20.3	$	12.1	$	209.4
Capitalizations	0.6		1.4		—		0.2		1.3		1.2		3.7
Amortization expense	(0.3)		(0.8)		(0.1)		(0.1)		(0.2)		(0.4)		(3.9)
Experience adjustment	(0.1)		(0.1)		(0.1)		(0.1)		(0.1)		(0.1)		(0.4)
Balance, end of period	$	24.8	$	35.3	$	5.3	$	8.2	$	21.4	$	12.8	$	208.8
($ in millions)	Three Months Ended September 30, 2024
	Whole Life		Term Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total Annuities
Balance, beginning of period	$	23.0	$	33.5	$	5.6	$	7.7	$	17.8	$	9.3	$	212.4
Capitalizations	0.8		1.2		0.1		0.3		0.8		0.8		3.9
Amortization expense	(0.4)		(0.9)		(0.1)		(0.1)		(0.3)		(0.2)		(4.1)
Experience adjustment	—		—		—		(0.1)		—		—		(0.2)
Balance, end of period	$	23.4	$	33.8	$	5.6	$	7.8	$	18.3	$	9.9	$	212.0

($ in millions)	Nine Months Ended September 30, 2025
	Whole Life		Term Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total Annuities
Balance, beginning of period	$	23.8	$	34.2	$	5.5	$	8.0	$	19.2	$	10.6	$	211.4
Capitalizations	1.9		3.6		0.1		0.5		2.9		3.3		10.5
Amortization expense	(0.9)		(2.4)		(0.3)		(0.3)		(0.7)		(0.9)		(11.8)
Experience adjustment	(0.1)		(0.1)		(0.1)		(0.1)		(0.1)		(0.2)		(1.3)
Balance, end of period	$	24.8	$	35.3	$	5.3	$	8.2	$	21.4	$	12.8	$	208.8
($ in millions)	Nine Months Ended September 30, 2024
	Whole Life		Term Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total Annuities
Balance, beginning of period	$	22.3	$	32.6	$	5.7	$	7.4	$	16.8	$	8.2	$	214.0
Capitalizations	2.2		3.8		0.2		0.8		2.4		2.4		11.9
Amortization expense	(1.0)		(2.6)		(0.3)		(0.3)		(0.8)		(0.6)		(12.0)
Experience adjustment	(0.1)		—		—		(0.1)		(0.1)		(0.1)		(1.9)
Balance, end of period	$	23.4	$	33.8	$	5.6	$	7.8	$	18.3	$	9.9	$	212.0

The following table presents a reconciliation of DAC to the Consolidated Balance Sheets:

($ in millions)	September 30, 2025		December 31, 2024
Whole life	$	24.8	$	23.8
Term life	35.3		34.2
Experience life	5.3		5.5
Limited pay whole life	8.2		8.0
Indexed universal life	21.4		19.2
Supplemental health	12.8		10.6
Total annuities	208.8		211.4
Reconciling item(1)	41.7		34.5
Total	$	358.3	$	347.2

(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.

In the third quarter of 2025 and 2024, the Company conducted a review of all significant assumptions. Beginning in 2025, the Company advanced the timing of its annual assumption review from the fourth quarter to the third quarter. Accordingly, in the third quarter of 2025, future cash flow assumptions for mortality and lapses were updated as part of the annual assumption update process. In the third quarter of 2024, future cash flow assumptions were reviewed but not changed, and the annual update was performed in the fourth quarter of 2024.