Policyholder Contract Liabilities

12 Months Ended

Dec. 31, 2019

POLICYHOLDER CONTRACT LIABILITIES

Policyholder Contract Liabilities at December 31, 2019 and 2018 were as follows:



DOLLARS IN MILLIONS	December 31,
DOLLARS IN MILLIONS	2019		2018
FHLB Funding Agreements	$	243.4	$	10.0
Other	66.4		66.8
Total	$	309.8	$	76.8

United Insurance has entered into funding agreements with the FHLB of Chicago in exchange for cash, which it uses for spread lending purposes. United Insurance received advances of $614.5 million from the FHLB of Chicago and made repayments of $381.1 million under the spread lending program in 2019. United Insurance received advances of $10.0 million from the FHLB of Chicago in 2018 under the spread lending program.

When a funding agreement is issued, United Insurance is then required to post collateral in the form of eligible securities including mortgage-backed, government, and agency debt instruments for each of the advances that are entered. The fair value of the collateral pledged must be maintained at certain specified levels above the borrowed amount, which can vary depending on the assets pledged. If the fair value of the collateral declines below these specified levels of the amount borrowed, United Insurance would be required to pledge additional collateral or repay outstanding borrowings. Upon any event of default by United Insurance, the FHLB’s recovery on the collateral is limited to the amount of United Insurance’s liability under the funding agreements to the FHLB of Chicago.

NOTE 7. POLICYHOLDER CONTRACT LIABILITIES (Continued)

United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at December 31, 2019 and 2018 is presented below.



DOLLARS IN MILLIONS	2019		2018
Liability under Funding Agreements	$	243.4	$	10.0
Fair Value of Collateral Pledged	$	287.8	$	15.7
FHLB of Chicago Common Stock Owned at Cost	$	4.9	$	0.8