Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Reserve Information of the Company’s Major Product Lines

The following table provides reserve information for our major product lines for the years ended December 31, 2023 and 2022:


	December 31, 2023								December 31, 2022
					Claims and Benefits Payable								Claims and Benefits Payable
	Future Policy Benefits and Expenses		Unearned Premiums		Case Reserves		Incurred But Not Reported Reserves		Future Policy Benefits and Expenses		Unearned Premiums		Case Reserves		Incurred But Not Reported Reserves
Long Duration Contracts:
Universal life and other products no longer offered	$	—	$	—	$	0.4	$	—	$	—	$	—	$	0.4	$	—
Disposed and run-off businesses	420.9		1.9		—		—		434.9		2.0		—		—
Short Duration Contracts:
Disposed and run-off businesses	—		—		15.1		0.2		—		—		16.5		0.2

Total	$	420.9	$	1.9	$	15.5	$	0.2	$	434.9	$	2.0	$	16.9	$	0.2

The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and are comprised of case and IBNR reserves.

Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively.

The best estimate of ultimate loss and loss adjustment expenses is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.


	Years Ended December 31,
	2023		2022		2021
Claims and benefits payable, at beginning of year	$	17.1	$	19.1	$	22.5
Less: Reinsurance ceded and other	(17.0)		(19.0)		(22.4)
Net claims and benefits payable, at beginning of year	0.1		0.1		0.1
Incurred losses and loss adjustment expenses related to:
Current Year	0.9		0.1		0.3

Prior years	(0.8)		—		—
Total incurred losses and loss adjustment expenses	0.1		0.1		0.3
Paid losses and loss adjustment expenses related to:
Current year	0.1		0.1		0.2
Prior years	—		—		0.1
Total paid losses and loss adjustment expenses	0.1		0.1		0.3
Net claims and benefits payable, at end of year	0.1		0.1		0.1
Plus: Reinsurance ceded and other	15.6		17.0		19.0
Claims and benefits payable, at end of year	$	15.7	$	17.1	$	19.1

Summary of Impact of Adoption

The table below describes the impacts of the ASUs adopted by the Company, effective January 1, 2023:


Standard	Summary of the Standard	Effective date Method of Adoption	Impact of the Standard on the Company's Financial Statements
ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long- Duration Contracts, as amended by ASU 2019-09, Financial Services—Insurance (Topic 944): Effective Date, as amended by ASU 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application and as amended by ASU 2022-05, Financial services— Insurance (Topic 944): Transition for Sold Contracts	The guidance includes the following primary changes: assumptions supporting liabilities for future policy benefits and expenses will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on upper-medium grade (low credit risk) fixed-income instrument yield instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income: and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement. In December 2022, the FASB issued guidance to provide entities an accounting policy election to not apply the accounting guidance to contracts or legal entities sold and derecognized before the effective date when the entity has no significant continuing involvement with them. The election may be applied on a transaction-by-transaction basis.	January 1, 2023, to be applied retrospectively or modified retrospectively to January 1, 2021 (with early adoption permitted)	The Company adopted this standard as of January 1, 2023 using the modified retrospective method on liabilities for future policy benefits and expenses to January 1, 2021 for long-term care insurance contracts that have been fully reinsured. The adoption of this standard along with the amended guidance on transition has no impact on equity or net income on the long-term care contracts as they are fully reinsured with third party reinsurers. However, disclosure along with a rollforward table on a gross basis on the long-term care business is presented in Note 10.

Future Adoption of Accounting Pronouncements

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company's financial statements or disclosures. ASUs issued but not yet adopted as of December 31, 2023, that are currently being assessed and may or may not have a material impact on the Company's financial statements or disclosures are included.


Standard	Summary of the Standard	Effective date Method of Adoption	Impact of the Standard on the Company's Financial Statements
ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures	The guidance improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures.	January 1, 2025 (with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance).	The Company is assessing when the standard will be adopted. The amended guidance has no impact to the Company’s consolidated financial statements and will have an insignificant impact on the Company’s income taxes disclosures.