Note 16 – Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table presents a summary of the changes in each component of AOCI for the nine months ended September 30, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
Unrealized
gains (losses)
on debt
securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Accumulated
other
comprehensive
income (loss) |
|
Balance at December 31, 2022 |
|
$ |
(751.6 |
) |
|
$ |
(82.1 |
) |
|
$ |
(35.2 |
) |
|
$ |
(868.9 |
) |
Change in unrealized losses on debt securities |
|
|
(187.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(187.5 |
) |
Change in foreign currency translation adjustment |
|
|
— |
|
|
|
(0.6 |
) |
|
|
— |
|
|
|
(0.6 |
) |
Amortization of net actuarial loss |
|
|
— |
|
|
|
— |
|
|
|
1.5 |
|
|
|
1.5 |
|
Tax effect |
|
|
46.3 |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
45.9 |
|
Balance at September 30, 2023 |
|
$ |
(892.8 |
) |
|
$ |
(82.7 |
) |
|
$ |
(34.1 |
) |
|
$ |
(1,009.6 |
) |
The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2023 and 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
Unrealized
gains (losses)
on debt
securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Total
other
comprehensive
income (loss) |
|
Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
|
$ |
(233.6 |
) |
|
$ |
(14.7 |
) |
|
$ |
— |
|
|
$ |
(248.3 |
) |
Reclassifications out of AOCI |
|
|
5.1 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
5.5 |
|
Tax effect |
|
|
56.9 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
57.2 |
|
Total other comprehensive (loss) income, net of tax |
|
$ |
(171.6 |
) |
|
$ |
(14.4 |
) |
|
$ |
0.4 |
|
|
$ |
(185.6 |
) |
Three Months Ended September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
|
$ |
(403.6 |
) |
|
$ |
(36.6 |
) |
|
$ |
— |
|
|
$ |
(440.2 |
) |
Reclassifications out of AOCI |
|
|
50.1 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
51.5 |
|
Tax effect |
|
|
90.8 |
|
|
|
0.8 |
|
|
|
(0.3 |
) |
|
|
91.3 |
|
Total other comprehensive (loss) income, net of tax |
|
$ |
(262.7 |
) |
|
$ |
(35.8 |
) |
|
$ |
1.1 |
|
|
$ |
(297.4 |
) |
The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2023 and 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
Unrealized
gains (losses)
on debt
securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Total
other
comprehensive
income (loss) |
|
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
|
$ |
(199.9 |
) |
|
$ |
(0.6 |
) |
|
$ |
— |
|
|
$ |
(200.5 |
) |
Reclassifications out of AOCI |
|
|
12.4 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
13.9 |
|
Tax effect |
|
|
46.3 |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
45.9 |
|
Total other comprehensive (loss) income, net of tax |
|
$ |
(141.2 |
) |
|
$ |
(0.6 |
) |
|
$ |
1.1 |
|
|
$ |
(140.7 |
) |
Nine Months Ended September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
|
$ |
(1,263.0 |
) |
|
$ |
(59.4 |
) |
|
$ |
— |
|
|
$ |
(1,322.4 |
) |
Reclassifications out of AOCI |
|
|
57.7 |
|
|
|
— |
|
|
|
4.5 |
|
|
|
62.2 |
|
Tax effect |
|
|
304.2 |
|
|
|
1.4 |
|
|
|
(1.2 |
) |
|
|
304.4 |
|
Total other comprehensive (loss) income, net of tax |
|
$ |
(901.1 |
) |
|
$ |
(58.0 |
) |
|
$ |
3.3 |
|
|
$ |
(955.8 |
) |
The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
(in millions) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Affected line items |
Unrealized gains (losses) on debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized losses on sales
of debt securities |
|
$ |
(5.1 |
) |
|
$ |
(50.1 |
) |
|
$ |
(12.4 |
) |
|
$ |
(57.7 |
) |
|
Net investment losses |
Tax effect |
|
$ |
1.2 |
|
|
$ |
12.9 |
|
|
$ |
3.1 |
|
|
$ |
14.6 |
|
|
|
Pension benefit adjustment (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of net actuarial loss |
|
$ |
(0.4 |
) |
|
$ |
(1.4 |
) |
|
$ |
(1.5 |
) |
|
$ |
(4.3 |
) |
|
Other operating expenses |
Amortization of prior service cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
Other operating expenses |
Pretax total |
|
$ |
(0.4 |
) |
|
$ |
(1.4 |
) |
|
$ |
(1.5 |
) |
|
$ |
(4.5 |
) |
|
|
Tax effect |
|
$ |
— |
|
|
$ |
0.4 |
|
|
$ |
0.4 |
|
|
$ |
1.2 |
|
|
|
(1)Amounts are components of net periodic cost. See Note 12 Employee Benefit Plans for additional details. |