Nature of Operations and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Nature of Operations and Significant Accounting Policies

Actuarial recohorting pre-tax impacts to comprehensive income (table)

The re-cohorting impacted the measurement of our DAC, cost of reinsurance, unearned revenue liability and additional liability for certain benefit features. The pre-tax impacts to comprehensive income were as follows:

	For the nine
	months ended
	September 30, 2022
	(in millions)
Increase to income before taxes
Deferred acquisition costs amortization (1)	$	(106.6)
Cost of reinsurance amortization (2)		4.2
Unearned revenue liability amortization (3)		32.4
Change in additional liability for certain benefit features (2)		139.7
Total increase to income before income taxes		69.7
Increase to pre-tax other comprehensive income
Deferred acquisition cost unrealized losses		(5.6)
Cost of reinsurance unrealized gains		8.7
Unearned revenue liability unrealized gains		8.5
Change in additional liability for certain benefit features unrealized gains		24.3
Total increase to pre-tax other comprehensive income		35.9
Total increase to pre-tax comprehensive income	$	105.6

(1) Reported in operating expenses.

(2) Reported in benefits, claims and settlement expenses.

(3) Reported in fees and other revenues.