BUSINESS SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Operating Information by Segment

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

	Three months ended
	March 31,
	2023		2022
Revenues:
Annuity:
Insurance policy income	$	5.1	$	5.0
Net investment income	125.4		117.5
Total annuity revenues	130.5		122.5
Health:
Insurance policy income	401.4		406.7
Net investment income	74.0		73.3
Total health revenues	475.4		480.0
Life:
Insurance policy income	219.0		213.3
Net investment income	36.3		35.5
Total life revenues	255.3		248.8
Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances)	18.6		(71.9)
Investment income not allocated to product lines	67.8		46.6
Fee revenue and other income:
Fee income	51.3		40.3
Amounts netted in expenses not allocated to product lines	1.6		2.8
Total segment revenues	$	1,000.5	$	869.1

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	Three months ended
	March 31,
	2023		2022
Expenses:
Annuity:
Insurance policy benefits	$	8.7	$	9.5
Interest credited	48.1		42.5
Amortization and non-deferred commissions	16.4		14.6
Total annuity expenses	73.2		66.6
Health:
Insurance policy benefits	318.1		323.1
Amortization and non-deferred commissions	40.8		41.6
Total health expenses	358.9		364.7
Life:
Insurance policy benefits	147.2		153.1
Interest credited	12.1		12.0
Amortization, non-deferred commissions and advertising expense	48.6		47.7
Total life expenses	207.9		212.8
Allocated expenses	157.5		144.8
Expenses not allocated to product lines	19.9		17.6
Market value changes of options credited to fixed indexed annuity and life policyholders	18.6		(71.9)
Amounts netted in investment income not allocated to product lines:
Interest expense	37.4		18.1
Interest credited	7.2		6.9
Impact of annual option forfeitures related to fixed indexed annuity surrenders	—		(1.6)
Amortization	.4		.4
Other expenses	7.3		(4.2)
Expenses netted in fee revenue:
Commissions and other operating expenses	35.8		30.4
Total segment expenses	924.1		784.6
Pre-tax measure of profitability:
Annuity margin	57.3		55.9
Health margin	116.5		115.3
Life margin	47.4		36.0
Total insurance product margin	221.2		207.2
Allocated expenses	(157.5)		(144.8)
Income from insurance products	63.7		62.4
Fee income	15.5		9.9
Investment income not allocated to product lines	15.5		27.0
Expenses not allocated to product lines	(18.3)		(14.8)
Operating earnings before taxes	76.4		84.5
Income tax expense on operating income	17.8		20.0
Net operating income	$	58.6	$	64.5

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
	March 31,
	2023		2022
Total segment revenues	$	1,000.5	$	869.1
Total investment losses	(14.6)		(32.7)
Revenues related to earnings attributable to VIEs	20.1		6.5
Consolidated revenues	1,006.0		842.9
Total segment expenses	924.1		784.6
Insurance policy benefits - changes in fair value of embedded derivative liabilities and market risk benefits	65.1		(165.4)
Expenses attributable to VIEs	17.8		6.1
Fair value changes related to agent deferred compensation plan	—		(22.7)
Consolidated expenses	1,007.0		602.6
Income (loss) before tax	(1.0)		240.3
Income tax expense (benefit) on period income (loss)	(.2)		56.9
Net income (loss)	(.8)		$	183.4