BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Operating Information by Segment

Operating information by segment is as follows (dollars in millions):

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Revenues:
Annuity:
Insurance policy income	$	6.3	$	5.8	$	17.1	$	15.5
Net investment income	117.3		115.5		347.2		346.1
Total annuity revenues	123.6		121.3		364.3		361.6
Health:
Insurance policy income	403.5		414.4		1,213.7		1,246.3
Net investment income	71.9		72.2		215.3		215.3
Total health revenues	475.4		486.6		1,429.0		1,461.6
Life:
Insurance policy income	213.4		210.4		643.0		631.7
Net investment income	36.6		36.4		109.1		108.3
Total life revenues	250.0		246.8		752.1		740.0
Change in market values of the underlying options supporting the fixed index annuity and life products (offset by market value changes credited to policyholder balances)	(34.9)		7.2		(199.2)		125.8
Investment income not allocated to product lines	63.6		69.8		197.9		207.2
Fee revenue and other income:
Fee income	30.6		28.0		102.0		91.4
Amounts netted in expenses not allocated to product lines	1.8		4.7		28.9		13.3
Total segment revenues	$	910.1	$	964.4	$	2,675.0	$	3,000.9

(continued on next page)

(continued from previous page)

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Expenses:
Annuity:
Insurance policy benefits	$	23.7	$	16.2	$	69.1	$	23.7
Interest credited	46.3		38.1		129.9		113.7
Amortization and non-deferred commissions	13.8		14.5		43.8		47.8
Total annuity expenses	83.8		68.8		242.8		185.2
Health:
Insurance policy benefits	307.8		325.4		924.8		955.3
Amortization and non-deferred commissions	43.5		43.3		141.9		142.8
Total health expenses	351.3		368.7		1,066.7		1,098.1
Life:
Insurance policy benefits	142.6		141.3		444.6		454.4
Interest credited	12.2		11.1		35.1		32.7
Amortization, non-deferred commissions and advertising expense	51.8		41.2		152.4		132.9
Total life expenses	206.6		193.6		632.1		620.0
Allocated expenses	150.5		140.5		447.5		423.2
Expenses not allocated to product lines	17.9		22.0		56.9		76.4
Market value changes of options credited to fixed index annuity and life policyholders	(34.9)		7.2		(199.2)		125.8
Amounts netted in investment income not allocated to product lines:
Interest expense	25.9		17.9		64.3		54.2
Interest credited	7.2		—		21.3		—
Amortization	.3		—		1.1		—
Other expenses	(2.0)		1.0		(18.0)		11.3
Expenses netted in fee revenue:
Commissions and other operating expenses	29.2		25.4		87.5		74.9
Total segment expenses	835.8		845.1		2,403.0		2,669.1
Pre-tax measure of profitability:
Annuity margin	39.8		52.5		121.5		176.4
Health margin	124.1		117.9		362.3		363.5
Life margin	43.4		53.2		120.0		120.0
Total insurance product margin	207.3		223.6		603.8		659.9
Allocated expenses	(150.5)		(140.5)		(447.5)		(423.2)
Income from insurance products	56.8		83.1		156.3		236.7
Fee income	1.4		2.6		14.5		16.5
Investment income not allocated to product lines	32.2		50.9		129.2		141.7
Expenses not allocated to product lines	(16.1)		(17.3)		(28.0)		(63.1)
Operating earnings before taxes	74.3		119.3		272.0		331.8
Income tax expense on operating income	17.4		26.5		63.9		74.7
Net operating income	$	56.9	$	92.8	$	208.1	$	257.1

Schedule of Reconciliation of Segment Revenues and Expenses to Consolidated Revenues and Expenses and Net Income

A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions):

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Total segment revenues	$	910.1	$	964.4	$	2,675.0	$	3,000.9
Total investment gains (losses)	(17.7)		(2.3)		(99.2)		26.2
Revenues related to earnings attributable to VIEs	12.9		6.2		27.4		20.3
Consolidated revenues	905.3		968.3		2,603.2		3,047.4
Total segment expenses	835.8		845.1		2,403.0		2,669.1
Insurance policy benefits - fair value changes in embedded derivative liabilities	(92.7)		(14.5)		(326.5)		(64.3)
Amortization related to fair value changes in embedded derivative liabilities	26.7		3.6		90.0		16.2
Amortization related to investment gains (losses)	(.6)		.1		(1.7)		1.4
Expenses attributable to VIEs	11.9		6.0		26.2		18.6
Fair value changes related to agent deferred compensation plan	(12.0)		—		(48.7)		(13.2)
Other expenses	(1.0)		—		(1.0)		—
Consolidated expenses	768.1		840.3		2,141.3		2,627.8
Income before tax	137.2		128.0		461.9		419.6
Income tax expense on period income	32.2		28.2		108.5		94.4
Net income	$	105.0	$	99.8	$	353.4	$	325.2