XML 63 R34.htm IDEA: XBRL DOCUMENT v3.24.0.1
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
Amount		Fair
Value		Fair Value Measurements at
Reporting Date Using
Level 1Level 2Level 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 securities388.8 388.8 45.6 343.2 — 
Municipal bonds1,270.1 1,270.1 — 1,196.1 74.0 
Foreign government bonds22.1 22.1 — 22.1 — 
Corporate bonds1,772.7 1,772.7 10.1 1,420.1 342.5 
Other asset-backed securities1,128.4 1,128.4 — 1,030.9 97.5 
Total fixed maturity securities5,235.3 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 securities342.6 342.6 24.6 318.0 — 
Municipal bonds1,269.7 1,269.7 — 1,215.3 54.4 
Foreign government bonds33.6 33.6 — 33.6 — 
Corporate bonds1,901.7 1,901.7 12.2 1,628.2 261.3 
Other asset-backed securities1,067.0 1,067.0 — 962.0 105.0 
Total fixed maturity securities5,185.0 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
Bonds		Corporate
 Bonds
Mortgage-Backed
and Other Asset-
Backed
Securities(2)
Total
Fixed
Maturity
Securities		Equity
Securities		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 
Purchases9.5 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)
Purchases0.2 20.2 12.8 33.2 — 33.2 — 
Issuances— — — — — — 7.4 
Sales— — (4.8)(4.8)— (4.8)— 
Settlements— — — — — — — 
Paydowns, maturities and distributions6.5 (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 bonds74.0 — 74.0 
Corporate bonds342.5 180.4 162.1 
Other asset-backed securities97.5 — 97.5 
Total fixed maturity securities514.0 180.4 333.6 
Equity securities4.5 — 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 bonds54.4 — 54.4 
Corporate bonds261.3 9.5 251.8 
Other asset-backed securities105.0 — 105.0 
Total fixed maturity securities423.3 9.5 413.8 
Equity securities2.0 — 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 TechniquesUnobservable 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 flowyield
6.7% - 17.0%
Decrease
Financial Liabilities
Derivatives embedded in fixed indexed annuity products$86.3 discounted cash flowlapse rate
5.9%
Decrease
mortality multiplier(2)
69.4%
Decrease
option budget
0.9% - 3.8%
Increase
non-performance adjustment(3)
5.0%
Decrease
Net MRBs$(3.9)discounted cash flowlapse 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 TechniquesUnobservable 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 flowyield6.8%Decrease
Financial Liabilities
Derivatives embedded in fixed indexed annuity products$91.0 discounted cash flowlapse rate5.4%Decrease
mortality multiplier(2)
67.8%Decrease
option budget
0.9% - 3.4%
Increase
non-performance adjustment(3)
5.0%Decrease
Net MRBs$0.3 discounted cash flowlapse rate5.3%Decrease
mortality multiplier(2)
67.8%Increase
(1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate.
(2) Mortality multiplier is applied to the Annuity 2000 table.
(3) Determined as a percentage of the risk-free rate.
The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB:
December 31, 2023
Whole Life Term LifeExperience Life Limited-Pay Whole Life SPIA (life contingent)
Mortality
Actual experience0.7 %
0.1% - 0.7%
1.6 %0.2 %N.M.
Expected experience0.7 %
0.1% - 2.3%
1.6 %0.3 %N.M.
Lapses
Actual experience3.4 %
5.3% - 13.0%
3.2 %4.2 %N.M.
Expected experience4.8 %
5.8% - 36.8%
3.1 %5.4 %N.M.
December 31, 2022
Whole LifeTerm LifeExperience LifeLimited-Pay Whole LifeSPIA (life contingent)
Mortality
Actual experience0.7 %
0.1% - 0.3%
1.6 %0.3 %N.M.
Expected experience0.7 %
0.1% - 1.0%
1.4 %0.2 %N.M.
Lapses
Actual experience3.2 %
5.7% - 58.1%
3.3 %3.8 %N.M.
Expected experience5.9 %
6.6% - 9.8%
3.2 %7.6 %N.M.
Summary of Fair Value Assets and Liabilities Measured on Nonrecurring Basis
($ in millions)Carrying
Amount		Fair
Value		Fair Value Measurements at
Reporting Date Using
Level 1Level 2Level 3
December 31, 2023
Financial Assets
Other investments$218.4 $221.7 $— $33.8 $187.9 
Deposit asset on reinsurance2,496.6 2,259.6 — — 2,259.6 
Financial Liabilities
Policyholders' account balances
4,996.3 4,861.8 — — 4,861.8 
Other policyholder funds916.0 916.0 — 908.7 7.3 
Long-term debt546.0 571.4 — 571.4 — 
December 31, 2022
Financial Assets
Other investments$167.4 $170.9 $— $— $170.9 
Deposit asset on reinsurance2,516.6 2,207.2 — — 2,207.2 
Financial Liabilities
Policyholders' account balances
5,039.7 4,940.3 — — 4,940.3 
Other policyholder funds863.0 863.0 — 810.7 52.3 
Reverse repurchase agreements70.2 73.9 — 73.9 — 
Short-term debt249.0 249.0 — — 249.0 
Long-term debt249.0 240.5 — 240.5 —