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Property and Casualty Insurance Reserves
 12 Months Ended
Dec. 31, 2023
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]  
Property and Casualty Insurance Reserves PROPERTY AND CASUALTY INSURANCE RESERVES
The Company’s Property and Casualty Insurance Reserves are reported using the Company’s estimate of its ultimate liability for losses and LAE for claims that occurred prior to the end of any given accounting period but have not yet been paid. Such estimates are based on individual case estimates for reported claims and estimates for IBNR losses, including expected development on reported claims. Property and Casualty Insurance Reserves are recorded net of any expected salvage and subrogation recoveries.
The determination of individual case reserves differs by line of business. For personal automobile insurance and commercial automobile insurance, case reserves are set primarily using statistical reserves that are based on studies of historical average paid amounts by state, coverage and product. However, when such reserves exceed certain thresholds they are set manually by
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
adjusters. For preferred homeowners insurance and other personal insurance, case reserves are set by adjusters and are based on the adjusters’ estimates of the amount for which the claims will ultimately be paid.
The Company’s actuaries estimate ultimate losses and LAE and, therefore, reserves at least quarterly for most product lines and/or coverage levels using accident quarters or years spanning 10 or more years, depending on the size of the product line and/or coverage level or emerging issues relating to them. The Company’s actuaries use a variety of generally accepted actuarial loss reserving estimation methodologies to estimate the ultimate losses and LAE for the current accident quarter or year and re-estimate the ultimate losses and LAE for previous accident quarters or years to determine if changes in the previous estimates of the ultimate losses and LAE are indicated by the most recent data.
The key assumption in these estimation methodologies is that patterns observed in prior periods are indicative of how losses and LAE are expected to develop in the future and that such historical data can be used to predict and estimate ultimate losses and LAE. However, changes in the Company’s business processes, by their very nature, are likely to affect the development patterns, which generally results in the historical development factors becoming less reliable over time in predicting how losses and LAE will ultimately develop. The Company’s actuaries use professional judgment in determining how much weight to place on the development patterns based on the older historical data and how much weight to place on the development patterns based on more recent data. In some cases, the Company’s actuaries make adjustments to the loss reserving estimation methodologies to estimate ultimate losses and LAE. The Company’s actuaries’ quarterly or yearly selections are summed by product and/or coverage levels to create the actuarial indication of the ultimate losses and LAE. Paid amounts are then subtracted from the ultimates to compute the reserves for property and casualty insurance losses and LAE. These results are reviewed by the Company’s actuaries and corporate management who apply their collective judgment and determine the appropriate estimated level of reserves to record. Numerous factors are considered in this determination process, including, but not limited to, the assessed reliability of key loss trends and assumptions that may be significantly influencing the current actuarial indications, changes in claim handling practices or other changes that affect the timing of payment or development patterns, changes in the mix of business, the maturity of the accident year, pertinent trends observed over the recent past, the level of volatility within a particular line of business, the improvement or deterioration of actuarial indications in the current period as compared to prior periods, and the amount of reserves related to third party pools for which the Company has limited access to the underlying data and, accordingly, relies on calculations provided by such pools. The Company’s goal is to ensure that its total reserves for property and casualty insurance losses and LAE are adequate to cover all costs, while sustaining minimal variation from the time reserves for losses and LAE are initially estimated until losses and LAE are fully developed. Changes in the Company’s estimates of these losses and LAE over time, also referred to as “development,” will occur and may be material.
The following tables contain information about incurred and paid claims development as of and for the year ended December 31, 2023, net of reinsurance and indemnification, as well as cumulative claim frequency and the total of IBNR liabilities, including expected development on reported claims included within the net incurred losses and allocated LAE amounts. The tables are grouped by major product line and, if relevant, coverage. The information about incurred and paid claims development for the years ended December 31, 2019 through 2022 is presented as supplementary information and is unaudited.
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Specialty Personal Automobile Insurance—Liability1
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2023
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20192020202120222023
2019$1,461.5 $1,494.7 $1,506.1 $1,508.3 $1,516.1 $20.0 547,437 
20201,401.2 1,406.4 1,407.8 1,415.9 29.9 475,894 
20211,856.9 1,824.7 1,844.2 75.9 585,665 
20221,765.9 1,848.7 169.3 471,990 
20231,448.7 537.1 282,423 
Total8,073.6 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20192020202120222023
2019$567.3 $1,200.7 $1,382.0 $1,452.3 $1,482.1 
2020555.2 1,107.6 1,287.8 1,350.0 
2021657.1 1,429.4 1,680.8 
2022738.2 1,463.3 
2023580.4 
Total6,556.6 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2019, Net of Reinsurance27.9 
Loss and Allocated LAE Reserves, Net of Reinsurance$1,544.9 
1 Tables retrospectively include American Access Casualty Company’s (“AAC”) historical incurred and paid accident year claim information for all periods presented.
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Specialty Personal Automobile Insurance—Physical Damage1
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2023
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20192020202120222023
2019$624.3 $630.3 $629.6 $629.7 $629.5 $(9.2)324,516 
2020650.5 659.5 659.5 659.0 (0.5)296,411 
2021958.0 967.5 967.2 (1.9)361,864 
2022993.5 989.5 (9.7)308,705 
2023722.6 (6.2)199,413 
Total3,967.8 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20192020202120222023
2019$570.8 $634.8 $630.6 $630.0 $629.8 
2020585.5 663.8 659.7 658.8 
2021890.1 977.5 968.3 
2022921.9 997.8 
2023699.2 
Total3,953.9 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2019, Net of Reinsurance(2.8)
Loss and Allocated LAE Reserves, Net of Reinsurance$11.1 
1 Tables retrospectively include AAC’s historical incurred and paid accident year claim information for all periods presented.
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Commercial Automobile Insurance—Liability
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2023
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20192020202120222023
2019$128.4 $126.1 $126.6 $128.1 $129.8 $5.7 19,641 
2020140.5 152.0 154.0 155.6 7.4 19,627 
2021225.6 228.6 240.4 24.8 27,382 
2022305.1 309.1 67.1 32,102 
2023379.9 201.4 31,970 
Total1,214.8 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
For the Years Ended December 31,
Accident Year20192020202120222023
2019$32.4 $75.7 $99.5 $113.1 $121.9 
202037.0 87.6 111.7 129.7 
202150.8 128.0 168.6 
202272.2 159.0 
202387.5 
Total666.7 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2019, Net of Reinsurance11.4 
Loss and Allocated LAE Reserves, Net of Reinsurance$559.5 
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Commercial Automobile Insurance—Physical Damage
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2023
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20192020202120222023
2019$26.0 $27.1 $26.9 $26.8 $26.8 $(0.5)9,317 
202031.9 32.2 32.1 32.1 — 11,044 
202152.4 51.9 51.6 0.2 17,724 
202274.5 74.7 (0.2)21,541 
202390.0 4.8 19,056 
Total275.2 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
For the Years Ended December 31,
Accident Year20192020202120222023
2019$23.0 $26.9 $26.8 $26.8 $26.9 
202026.2 31.9 32.0 32.0 
202143.3 51.9 51.4 
202266.8 74.6 
202380.6 
Total265.5 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2019, Net of Reinsurance— 
Loss and Allocated LAE Reserves, Net of Reinsurance$9.7 
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Non-Core Personal Automobile Insurance—Liability
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2023
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20192020202120222023
2019$172.2 $195.5 $200.0 $201.8 $204.8 $1.6 34,622 
2020148.9 153.6 151.8 158.8 3.1 24,664 
2021176.9 179.8 180.6 9.3 27,173 
2022165.0 172.4 19.9 24,019 
2023135.0 47.1 15,795 
Total851.6 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20192020202120222023
2019$62.7 $127.9 $160.8 $181.1 $193.5 
202044.4 92.8 117.7 141.4 
202150.3 106.1 144.1 
202255.0 111.0 
202343.7 
Total633.7 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2019, Net of Reinsurance8.2 
Loss and Allocated LAE Reserves, Net of Reinsurance$226.1 
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Non-Core Personal Automobile Insurance—Physical Damage
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2023
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20192020202120222023
2019$126.4 $125.8 $125.9 $125.8 $125.4 $— 67,108 
202096.1 98.0 97.9 97.5 — 47,589 
2021118.5 117.9 117.1 (0.2)53,477 
2022110.9 113.5 (1.1)48,108 
202386.6 (1.3)32,552 
Total540.1 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20192020202120222023
2019$120.7 $126.5 $125.6 $125.4 $125.4 
202090.9 98.4 97.6 97.5 
2021113.1 118.1 117.2 
2022108.7 114.6 
202384.8 
Total539.5 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2019, Net of Reinsurance— 
Loss and Allocated LAE Reserves, Net of Reinsurance$0.6 
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Non-Core Homeowners Insurance
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2023
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20192020202120222023
2019$162.9 $161.8 $163.1 $162.8 $161.6 $0.4 14,531 
2020157.0 149.8 144.6 141.2 0.4 14,074 
2021149.9 149.8 143.9 0.9 13,620 
2022142.7 152.7 1.7 11,463 
2023126.6 12.8 8,913 
Total726.0 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20192020202120222023
2019$111.1 $150.4 $157.7 $159.5 $160.6 
202094.6 130.8 137.4 139.8 
2021100.6 132.6 139.7 
202297.0 141.2 
202384.7 
Total666.0 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2019, Net of Reinsurance1.5 
Loss and Allocated LAE Reserves, Net of Reinsurance$61.5 
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
The claim counts in the preceding tables are cumulative reported claim counts as of December 31, 2023 and are equal to the sum of cumulative open and cumulative closed claims, including claims closed without payment. Certain product lines, particularly the Company’s specialty personal automobile insurance, tend to have a higher percentage of claims closed without payment.
The Company's claims associated with automobile insurance are counted at the feature level. As such, each claimant and each coverage is counted separately. For example, if for one occurrence, the Company's policyholder is at fault for damage to his/her own vehicle, another party's vehicle and three injured parties, there may be five features—three for bodily injury liability, one for property damage liability and one for first-party collision coverage. There may also be another feature for first-party medical payments.
The following table reconciles the net incurred and paid claims development tables presented above to the Company's liability for Property and Casualty Insurance Reserves included in the Consolidated Balance Sheets at December 31, 2023.
DOLLARS IN MILLIONS2023
Property and Casualty Insurance Reserves, Net of Reinsurance:
Specialty Personal Automobile Insurance—Liability$1,544.9 
Specialty Personal Automobile Insurance—Physical Damage11.1 
Commercial Automobile Insurance—Liability559.5 
Commercial Automobile Insurance—Physical Damage9.7 
Non-Core Personal Automobile Insurance—Liability226.1 
Non-Core Personal Automobile Insurance—Physical Damage0.6 
Non-Core Homeowners Insurance61.5 
Other37.4 
Total$2,450.8 
Reinsurance Recoverables on Unpaid Losses and Allocated LAE:
Specialty Personal Automobile Insurance—Liability$6.0 
Non-Core Preferred Personal Automobile Insurance—Liability18.7 
Non-Core Homeowners Insurance0.2 
Other2.9 
Total27.8 
Unallocated LAE201.9 
Property and Casualty Insurance Reserves, Gross of Reinsurance$2,680.5 
The following is supplementary information about average historical claims duration as of December 31, 2023.
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Years12345
Specialty Personal Automobile Insurance—Liability38.5 %78.5 %91.1 %95.6 %97.8 %
Specialty Personal Automobile Insurance—Physical Damage92.3 100.0 100.0 100.0 100.0 
Commercial Automobile Insurance—Liability23.3 54.8 72.9 85.3 93.9 
Commercial Automobile Insurance—Physical Damage86.1 100.0 100.0 100.0 100.0 
Non-Core Preferred Personal Automobile Insurance—Liability30.1 61.0 77.5 88.7 94.5 
Non-Core Preferred Personal Automobile Insurance—Physical Damage96.0 100.0 100.0 100.0 100.0 
Non-Core Homeowners Insurance67.2 92.6 97.3 98.8 99.4 
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Property and Casualty Insurance Reserve activity for the years ended December 31, 2023, 2022 and 2021 was:
DOLLARS IN MILLIONS202320222021
Property and Casualty Insurance Reserves:
Gross of Reinsurance at Beginning of Year$2,756.9 $2,772.7 $1,982.5 
Less Reinsurance Recoverables at Beginning of Year39.6 41.9 50.1 
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year
2,717.3 2,730.8 1,932.4 
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance
— — 211.1 
Incurred Losses and LAE related to:
Current Year3,429.9 4,103.3 4,052.7 
Prior Years159.8 (14.6)106.7 
Total Incurred Losses and LAE3,589.7 4,088.7 4,159.4 
Paid Losses and LAE related to:
Current Year:1,965.3 2,460.5 2,303.4 
Prior Years1,689.0 1,641.7 1,268.7 
Total Paid Losses and LAE3,654.3 4,102.2 3,572.1 
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year2,652.7 2,717.3 2,730.8 
Plus Reinsurance Recoverables at End of Year27.8 39.6 41.9 
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year
$2,680.5 $2,756.9 $2,772.7 
Property and Casualty Insurance Reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Consolidated Statements of Loss in the period of change.
In 2023, the Company increased its property and casualty insurance reserves by $159.8 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed adversely by $108.7 million due primarily to higher than expected emergence in loss patterns related to third and fourth accident quarters of 2022 within the bodily injury and physical damage coverages as well as an increase in Florida personal injury protection driven by higher than expected frequency and severity resulting from an increase in litigated claim activity, mainly from policy years 2020 through 2022. Commercial Automobile insurance loss and LAE reserves developed adversely by $24.2 million due to higher than expected emergence in loss patterns related to policy years 2021 and 2022 bodily injury coverages. Non-Core personal automobile insurance loss and LAE reserves developed adversely by $21.6 million due to higher than expected emergence in loss patterns related to the third and fourth accident quarters of 2022 within the bodily injury and physical damage coverages. Homeowners insurance loss and LAE reserves developed adversely by $1.5 million. Other personal lines loss and LAE reserves developed adversely by $3.8 million.
In 2022, the Company decreased its property and casualty insurance reserves by $14.6 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed favorably by $17.6 million due primarily to the emergence of more favorable loss patterns than expected for liability and physical damage insurance. Commercial Automobile insurance loss and LAE reserves included adverse development of $3.6 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Non-Core personal automobile insurance loss and LAE reserves developed adversely by $1.8 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Homeowners insurance loss and LAE reserves developed favorably by $7.6 million due primarily to the emergence of more favorable loss patterns than expected. Other personal lines loss and LAE reserves developed adversely by $5.2 million due primarily to the emergence of less favorable loss patterns than expected for prior accident years.
NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
In 2021, the Company increased its property and casualty insurance reserves by $106.7 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed adversely by $85.3 million due primarily to legal developments and increased severity in personal injury protection coverage in Florida and other liability coverages. Commercial Automobile insurance loss and LAE reserves included adversely development of $12.4 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Non-Core personal automobile insurance loss and LAE reserves developed adversely by $12.1 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Homeowners insurance loss and LAE reserves developed favorably by $6.5 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Other personal lines loss and LAE reserves developed adversely by $3.4 million due primarily to the emergence of less favorable loss patterns than expected for prior accident years.
The Company cannot predict whether loss and LAE reserves will develop favorably or unfavorably from the amounts reported in the Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s consolidated financial position, but could have a material effect on the Company’s consolidated financial results for a given period.
Reinsurance recoverables on property and casualty insurance reserves were $27.8 million and $39.6 million at December 31, 2023 and 2022, respectively. These recoverables are concentrated with several reinsurers, the majority of which are highly rated by one or more of the principal investor and/or insurance company rating agencies. While most of these recoverables were unsecured at December 31, 2023 and 2022, the agreements with the reinsurers generally provide for some form of collateralization upon the occurrence of certain events.
LIABILITY FOR FUTURE POLICYHOLDER BENEFITS
The Company’s Life Insurance Reserves are reported using the Company’s estimate of its liability for future policyholder benefits.
The liability for future policyholder benefits is grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. Significant assumption inputs to the calculation of the liability for future policyholder benefits include mortality, lapses, and discount rates (both accretion and current). The Company’s actuaries review assumptions used to measure the liability for future policyholder benefits for nonparticipating traditional and limited pay long-duration contracts at least annually. If there is a change, assumptions are updated with the recognition and remeasurement recorded in net income. The Company’s actuaries use a variety of generally accepted actuarial methodologies, in accordance with Actuarial Standards of Practice, in determining the assumptions.
The key assumption in these estimation methodologies is that patterns observed in prior periods are indicative of how policyholder benefits are expected to develop in the future and that such historical data can be used to predict and estimate future losses. However, changes in the Company’s business processes and the macroeconomic environment, by their very nature, are likely to affect the actual to expected experience which generally results in the historical experience factors becoming less reliable over time in predicting how cash flows will ultimately develop. The Company’s actuaries use professional judgment in determining how much weight to place on the actual to expected experience based on the older historical data and how much weight to place on more recent experience data. In some cases, the Company’s actuaries make adjustments to the assumptions to estimate losses. These assumptions are reviewed by the Company’s actuaries and corporate management who apply their collective judgment and determine the appropriate assumptions to adopt for the underlying business. Numerous factors are considered in this determination process, including, but not limited to, the assessed reliability of key assumptions that may be significantly influencing the current actuarial indications, changes in pricing and product offerings, changes in customer base, changes in agency operations or other changes that affect the timing of payments, the policyholder behaviors observed over the recent past, the level of volatility within a particular line of business, and the improvement or deterioration of actuarial indications in the current period as compared to prior periods. Changes in the Company’s assumptions underlying these liabilities over time will occur and may be material.
NOTE 7. LIABILITY FOR FUTURE POLICYHOLDER BENEFITS (Continued)
The following tables summarize balances and changes in the present value of expected net premiums, present value of expected future policyholder benefits and net liability for future policyholder benefits as of and for the years ended December 31, 2023, 2022 and 2021 was:
DOLLARS IN MILLIONSYear Ended
Dec 31, 2023Dec 31, 2022Dec 31, 2021
Present Value of Expected Net PremiumsBalance, Beginning of Period$688.6 $669.0 $396.0 
Beginning Balance at Original Discount Rate$728.9 $599.8 $325.6 
        Effect of Changes in Cash Flow Assumptions(35.7)68.5 124.3 
        Effect of Actual Variances from Expected Experience(38.5)(6.4)64.7 
Adjusted Beginning of Period Balance654.7 661.9 514.6 
         Issuances105.2 133.2 133.2 
         Interest Accrual29.7 21.9 17.4 
         Net Premiums Collected(94.9)(88.1)(65.4)
Ending Balance at Original Discount Rate694.7 728.9 599.8 
         Effect of Changes in Discount Rate Assumptions(19.3)(40.3)69.2 
Balance, End of Period$675.4 $688.6 $669.0 
Present Value of Expected Future Policyholder BenefitsBalance, Beginning of Period$3,561.0 $4,933.1 $4,924.9 
Beginning Balance at Original Discount Rate$3,906.2 $3,788.1 $3,550.3 
        Effect of Changes in Cash Flow Assumptions(59.0)77.2 130.0 
        Effect of Actual Variances From Expected Experience(45.5)(7.0)65.1 
Adjusted Beginning of Period Balance3,801.7 3,858.3 3,745.4 
         Issuances 104.6 133.2 134.4 
         Interest Accrual171.0 164.0 162.1 
         Benefit Payments(241.4)(249.3)(253.8)
Ending Balance at Original Discount Rate3,835.9 3,906.2 3,788.1 
         Effect of Changes in Discount Rate Assumptions(222.7)(345.2)1,145.0 
Balance, End of Period$3,613.2 $3,561.0 $4,933.1 
Net Liability for Future Policyholder Benefits$2,937.8 $2,872.4 $4,264.1 
Less: Reinsurance Recoverable— — — 
Net Liability for Future Policyholder Benefits, After Reinsurance Recoverable$2,937.8 $2,872.4 $4,264.1 
The weighted-average liability duration of the liability for future policyholder benefits as calculated under current rates is as follows:
Dec 31, 2023Dec 31, 2022Dec 31, 2021
Weighted-Average Liability Duration of the Liability for Future Policyholder Benefits (Years)15.314.618.2
NOTE 7. LIABILITY FOR FUTURE POLICYHOLDER BENEFITS (Continued)
The reconciliation of the net liability for future policyholder benefits to Life and Health Insurance Reserves in the Consolidated Balance Sheets is as follows:
DOLLARS IN MILLIONSDec 31, 2023Dec 31, 2022
Net Liability for Future Policyholder Benefits$2,937.8 $2,872.4 
Deferred Profit Liability337.8 253.6 
Other1
146.8 150.2 
Total Life and Health Insurance Reserves$3,422.4 $3,276.2 
1Other primarily consists of Accident and Health and Universal Life reserves
The amounts of expected undiscounted future benefit payments, expected undiscounted future gross premiums and expected discounted future gross premiums, were as follows:
DOLLARS IN MILLIONSDec 31, 2023Dec 31, 2022
Expected Future Benefit Payments, undiscounted$10,185.2 $10,137.2 
Expected Future Gross Premiums, undiscounted$4,107.9 $4,436.8 
Expected Future Gross Premiums, discounted$2,800.6 $2,844.4 
The amount of revenue and interest recognized in the Consolidated Statements of Loss is as follows:
Year Ended
DOLLARS IN MILLIONSDec 31, 2023Dec 31, 2022Dec 31, 2021
Gross Premiums or Assessments $399.0 $392.1 $380.3 
Interest Expense $141.3 $142.1 $144.9 
The weighted-average interest rate is as follows:
Dec 31, 2023Dec 31, 2022
Interest Accretion Rate4.57 %4.60 %
Current Discount Rate5.08 %5.30 %
Significant assumption inputs to the calculation of the liability for future policyholder benefits include mortality, lapses, and discount rates (both accretion and current). The Company reviewed and updated mortality and lapse assumptions during the fourth quarter of 2023. Market data that underlies current discount rates was updated from September 30, 2023.
The balances of and changes in Deferred Profit Liability as of and for the years indicated are as follows:
DOLLARS IN MILLIONSDec 31, 2023Dec 31, 2022Dec 31, 2021
Balance, beginning of period$253.6 $193.4 $112.7 
Annual assumption changes15.0 (12.7)(4.6)
Profits deferred163.1 164.7 176.3 
Interest accrual13.2 10.4 6.8 
Amortization(111.2)(101.6)(97.6)
Effect of actual variances from expected experience and other changes4.1 (0.6)(0.2)
Balance, end of period$337.8 $253.6 $193.4