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Basis of Presentation and Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Liability for Future Policy Benefit, Activity
The following table summarizes the balance of and changes in LFPB on January 1, 2021 due to adoption of ASU 2018-12. The impact of shifts between deferred profit liabilities (DPL) and LFPB for limited-payment products are presented as offsetting line items in the effect of net premiums exceeding gross premiums and the effect of decrease/increase of DPL.
($ in millions)
Whole LifeTerm LifeExperience LifeLimited Pay Whole Life
Supplemental Health(1)
SPIA (life contingent)
Balance, end of year December 31, 2020$218.7 $93.2 $758.3 $51.3 $392.5 $115.9 
Change in discount rate assumptions111.5 27.3 433.0 18.2 23.0 20.6 
Change in cash flow assumptions, effect of net premiums exceeding gross premiums0.4 — — — — — 
Adjusted balance, beginning of year January 1, 2021330.6 120.5 1,191.3 69.5 415.5 136.5 
Less: Reinsurance recoverables, end of year December 31, 2020(0.1)(5.4)(1.3)(0.1)— — 
Less: Change in discount rate assumptions(0.2)(0.9)(0.7)(0.1)— — 
Adjusted balance, beginning of year January 1, 2021, net of reinsurance$330.3 $114.2 $1,189.3 $69.3 $415.5 $136.5 
(1)     As of January 1, 2021, the net LFPB for Supplemental Health was $163.5 million for cancer, $31.2 million for accident, $32.0 million for disability and $188.8 million for other supplemental health policies.
The following tables summarize balances and changes in LFPB for traditional and limited-payment contracts.
The balances of and changes in LFPB as of and for the three months ended June 30, 2023 were as follows:
($ in millions)
Whole Life Term Life
Experience
Life(1)
Limited-Pay Whole Life
Supplemental
Health(2)
SPIA (life contingent)
Present value of expected net premiums:
Balance at April 1, 2023$222.2 $243.8 $69.8 $31.2 $172.5 $— 
April 1, 2023 balance at original discount rate246.6 266.0 65.0 33.1 205.1 — 
Effect of: — — — — — — 
Change in cash flow assumptions— (5.3)— — — — 
Actual variances from expected experience 1.0 0.5 0.5 0.8 1.7 — 
Adjusted balance at April 1, 2023247.6 261.2 65.5 33.9 206.8 — 
Issuances(3)
2.6 6.5 — 1.1 4.6 1.4 
Interest accruals(4)
1.8 2.7 0.8 0.3 1.5 — 
Net premiums collected(5)
(5.0)(5.3)(1.6)(1.1)(5.4)(1.4)
June 30, 2023 balance at original discount rate247.0 265.1 64.7 34.2 207.5 — 
Effect of changes in discount rate assumptions(29.5)(24.8)3.4 (2.5)(35.5)— 
Balance at June 30, 2023
217.5 240.3 68.1 31.7 172.0 — 
Present value of expected future policy benefits:
Balance at April 1, 2023515.1 365.0 892.5 84.4 437.7 105.9 
April 1, 2023 balance at original discount rate585.4 405.2 801.5 100.3 530.6 113.3 
Effect of:
Changes in cash flow assumptions— (5.6)— — — — 
Actual variances from expected experience1.1 2.2 0.5 0.9 1.8 — 
Adjusted balance at April 1, 2023586.5 401.8 802.0 101.2 532.4 113.3 
Issuances 2.6 6.6 — 1.1 4.6 1.6 
Interest accruals 4.7 3.5 11.9 1.0 3.6 1.1 
Benefit payments(6)
(5.1)(5.5)(14.3)(0.7)(14.8)(3.0)
June 30, 2023 balance at original discount rate
588.7 406.4 799.6 102.6 525.8 113.0 
Effect of changes in discount rate assumptions(81.6)(45.8)71.9 (17.3)(99.2)(9.4)
Balance at June 30, 2023
507.1 360.6 871.5 85.3 426.6 103.6 
Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 
Less: Reinsurance recoverable (63.1)(16.7)(0.7)(0.2)(3.9)(3.5)
Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 
Impact of flooring on net liability for future policy benefits— — — — — — 
Net liability for future policy benefits at June 30, 2023
$226.3 $103.6 $802.8 $53.5 $250.6 $100.1 
(1) Experience Life contains both whole life and term elements.
(2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies.
(3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period.
(4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.
(5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business.
(6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions.
The balances of and changes in LFPB as of and for the six months ended June 30, 2023 were as follows:
($ in millions)
Whole Life Term Life
Experience
Life(1)
Limited-Pay Whole Life
Supplemental
Health(2)
SPIA (life contingent)
Present value of expected net premiums:
Balance at January 1, 2023$215.1 $234.7 $68.3 $29.7 $167.4 $— 
January 1, 2023 balance at original discount rate245.9 265.4 65.5 32.4 205.1 — 
Effect of: — — — — — — 
Change in cash flow assumptions— (5.3)— — — — 
Actual variances from expected experience 1.8 (1.0)0.7 1.3 0.3 — 
Adjusted balance at January 1, 2023247.7 259.1 66.2 33.7 205.4 — 
Issuances(3)
5.4 13.0 — 2.1 9.9 3.4 
Interest accruals(4)
3.6 5.2 1.8 0.6 3.0 — 
Net premiums collected(5)
(9.7)(12.2)(3.3)(2.2)(10.8)(3.4)
June 30, 2023 balance at original discount rate
247.0 265.1 64.7 34.2 207.5 — 
Effect of changes in discount rate assumptions(29.5)(24.8)3.4 (2.5)(35.5)— 
Balance at June 30, 2023
217.5 240.3 68.1 31.7 172.0 — 
Present value of expected future policy benefits:
Balance at January 1, 2023493.6 347.0 867.5 79.4 431.7 103.3 
January 1, 2023 balance at original discount rate581.9 401.0 805.2 98.6 537.1 113.4 
Effect of:
Changes in cash flow assumptions— (5.6)— — — — 
Actual variances from expected experience1.9 0.7 0.9 1.5 0.1 (0.5)
Adjusted balance at January 1, 2023583.8 396.1 806.1 100.1 537.2 112.9 
Issuances 5.5 13.2 — 2.1 9.9 4.0 
Interest accruals 9.4 7.5 23.8 1.9 7.2 2.2 
Benefit payments(6)
(10.0)(10.4)(30.3)(1.5)(28.5)(6.1)
June 30, 2023 balance at original discount rate
588.7 406.4 799.6 102.6 525.8 113.0 
Effect of changes in discount rate assumptions(81.6)(45.8)71.9 (17.3)(99.2)(9.4)
Balance at June 30, 2023
507.1 360.6 871.5 85.3 426.6 103.6 
Net liability for future policy benefits 289.4 120.3 803.5 53.7 254.5 103.6 
Less: Reinsurance recoverable (63.1)(16.7)(0.7)(0.2)(3.9)(3.5)
Net liability for future policy benefits, after reinsurance recoverable 226.3 103.6 802.8 53.5 250.6 100.1 
Impact of flooring on net liability for future policy benefits— — — — — — 
Net liability for future policy benefits at June 30, 2023$226.3 $103.6 $802.8 $53.5 $250.6 $100.1 
(1) Experience Life contains both whole life and term elements.
(2) As of June 30, 2023, the net LFPB for Supplemental Health was $97.3 million for cancer, $21.5 million for accident, $22.9 million for disability and $108.9 million for other supplemental health policies.
(3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period.
(4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.
(5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business.
(6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions.
The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows:
($ in millions)
Whole Life Term Life
Experience
Life(1)
Limited-Pay Whole Life
Supplemental Health(2)
SPIA (life contingent)
Present Value of Expected Net Premiums
Balance at January 1, 2022(7)
$260.7 $264.4 $74.6 $29.7 $226.7 $— 
January 1, 2022 balance at original discount rate(7)
239.3 235.4 55.9 27.2 223.1 — 
Effect of:
Change in cash flow assumptions5.2 18.7 9.1 2.0 12.2 — 
Actual variances from expected experience 7.2 (4.2)3.0 1.6 (25.3)— 
Adjusted balance at January 1, 2022251.7 249.9 68.0 30.8 210.0 — 
Issuances(3)
12.5 28.0 — 6.3 12.0 5.3 
Interest accruals(3)
6.7 9.0 3.3 1.1 5.9 — 
Net premiums collected(5)
(25.0)(21.5)(5.8)(5.8)(22.8)(5.3)
December 31, 2022 balance at original discount rate245.9 265.4 65.5 32.4 205.1 — 
Effect of changes in discount rate assumptions(30.8)(30.7)2.8 (2.7)(37.7)— 
Balance at December 31, 2022215.1 234.7 68.3 29.7 167.4 — 
Present Value of Expected Future Policy Benefits
Balance at January 1, 2022(7)
660.4 411.5 1,172.7 102.9 590.6 129.1 
January 1, 2022 balance at original discount rate(7)
566.1 360.0 802.6 86.6 584.2 115.7 
Effect of:
Changes in cash flow assumptions5.2 21.5 11.0 2.0 13.8 — 
Actual variances from expected experience7.7 (4.7)3.6 1.4 (30.0)0.4 
Adjusted balance at January 1, 2022579.0 376.8 817.2 90.0 568.0 116.1 
Issuances 12.4 28.3 — 6.4 12.0 5.3 
Interest accruals 18.0 14.4 47.4 3.4 15.0 4.3 
Benefit payments(6)
(27.5)(18.5)(59.4)(1.2)(57.9)(12.3)
December 31, 2022 balance at original discount rate581.9 401.0 805.2 98.6 537.1 113.4 
Effect of changes in discount rate assumptions(88.3)(54.0)62.3 (19.2)(105.4)(10.1)
Balance at December 31, 2022493.6 347.0 867.5 79.4 431.7 103.3 
Net liability for future policy benefits 278.4 112.2 799.3 49.6 264.4 103.3 
Less: Reinsurance recoverable (63.1)(15.3)(0.8)— (3.4)(3.2)
Net liability for future policy benefits, after reinsurance recoverable 215.3 96.9 798.5 49.6 261.0 100.1 
Impact of flooring on net liability for future policy benefits 1.1 0.2 — — — — 
Net liability for future policy benefits at December 31, 2022$216.4 $97.1 $798.5 $49.6 $261.0 $100.1 
(1) Experience Life contains both whole life and term elements.
(2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies.
(3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period.
(4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.
(5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business.
(6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions.
(7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022.
The balances of and changes in LFPB (including a summary of the balance and changes in the LFPB on January 1, 2021 due to adoption of ASU 2018-12) as of and for the year ended December 31, 2021 were as follows:
($ in millions)
Whole Life Term Life
Experience
 Life(1)
Limited-Pay Whole Life
Supplemental Health(2)
SPIA (life contingent)
Balance, end of year December 31, 2020$218.7 $93.2 $758.3 $51.3 $392.5 $115.9 
Change in discount rate assumptions111.5 27.3 433.0 18.2 23.0 20.6 
Change in cash flow assumptions, effect of net premiums exceeding gross premiums0.4 — — — — — 
Change in cash flow assumptions, effect of decrease of the DPL— — — — — — 
Adjustment for removal of related balances in AOCI— — — — — — 
Adjusted balance, beginning of year January 1, 2021330.6 120.5 1,191.3 69.5 415.5 136.5 
Less: Reinsurance recoverables(0.1)(5.4)(1.3)(0.1)— — 
Less: Change in discount rate assumptions(0.2)(0.9)(0.7)(0.1)— — 
Adjusted balance, beginning of year January 1, 2021, net of reinsurance$330.3 $114.2 $1,189.3 $69.3 $415.5 $136.5 
Present Value of Expected Net Premiums
Balance at January 1, 2021$176.5 $244.1 $78.0 $25.4 $233.0 $— 
January 1, 2021 balance at original discount rate143.5 200.8 55.2 22.0 218.2 — 
Effect of:
Change in cash flow assumptions2.4 (4.5)(3.3)— (1.8)— 
Actual variances from expected experience 8.8 6.9 6.3 1.0 6.3 — 
Adjusted balance at January 1, 2021154.7 203.2 58.2 23.0 222.7 — 
Issuances(3)
13.3 29.8 — 10.2 13.0 3.7 
Interest accruals(4)
6.2 7.9 3.2 0.8 5.9 — 
Net premiums collected(5)
(16.6)(19.8)(5.6)(6.8)(24.1)(3.7)
December 31, 2021 balance at original discount rate157.6 221.1 55.8 27.2 217.5 — 
Effect of changes in discount rate assumptions25.4 32.0 18.8 2.5 4.0 — 
Balance at December 31, 2021183.0 253.1 74.6 29.7 221.5 — 
Present Value of Expected Future Policy Benefits
Balance at January 1, 2021507.1 364.7 1,269.3 95.0 626.9 136.5 
January 1, 2021 balance at original discount rate362.5 294.0 813.5 73.4 589.1 115.9 
Effect of:
Changes in cash flow assumptions2.8 (4.8)(3.6)— (3.0)— 
Actual variances from expected experience8.7 7.2 6.6 1.1 6.2 (0.4)
Adjusted balance at January 1, 2021374.0 296.4 816.5 74.5 592.3 115.5 
Issuances 13.3 29.8 — 10.2 13.0 3.7 
Interest accruals 17.1 12.0 47.9 2.9 15.7 4.5 
Benefit payments(5)
(18.1)(18.7)(61.9)(1.0)(48.4)(12.1)
December 31, 2021 balance at original discount rate386.3 319.5 802.5 86.6 572.6 111.6 
Effect of changes in discount rate assumptions114.4 51.1 370.2 16.3 8.0 13.1 
Balance at December 31, 2021500.7 370.6 1,172.7 102.9 580.6 124.7 
Net liability for future policy benefits 317.7 117.6 1,098.1 73.2 359.1 124.7 
Less: Reinsurance recoverable (0.5)(5.5)(1.1)(0.2)— — 
Net liability for future policy benefits, after reinsurance recoverable $317.2 $112.1 $1,097.0 $73.0 $359.1 $124.7 
(1) Experience Life contains both whole life and term elements.
(2) As of December 31, 2021, the net LFPB for Supplemental Health was $140.8 million for cancer, $28.7 million for accident, $29.3 million for disability and $160.3 million for other supplemental health policies.
(3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period.
(4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.
(5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business.
(6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions.
The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss):
($ in millions)Gross premiums or assessments Gross premiums or assessments
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Whole life$6.7 $6.2 $13.3 $12.3 
Term life11.4 10.4 22.2 20.3 
Experience life7.9 8.3 16.1 16.8 
Limited-pay whole life1.7 2.5 3.3 4.3 
Supplemental health30.0 30.6 59.7 61.3 
SPIA (life contingent) 1.4 0.8 3.6 3.3 
Total$59.1 $58.8 $118.2 $118.3 
($ in millions)Interest expenseInterest expense
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Whole life$2.9 $2.9 $5.8 $5.6 
Term life1.2 1.1 2.4 2.2 
Experience life10.9 11.0 21.9 22.1 
Limited-pay whole life0.7 0.6 1.3 1.2 
Supplemental health2.1 2.3 4.3 4.7 
SPIA (life contingent) 1.1 1.1 2.2 2.2 
Total$18.9 $19.0 $37.9 $38.0 
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts:
($ in millions)
As of
June 30, 2023
As of
December 31, 2022
Undiscounted DiscountedUndiscountedDiscounted
Whole life
Expected future gross premiums $473.5 $325.1 $469.0 $322.5 
Expected future benefits and expenses1,134.3 588.7 1,121.4 580.4 
Term life
Expected future gross premiums 751.4 469.0 739.3 464.2 
Expected future benefits and expenses693.9 406.4 678.0 401.0 
Experience Life
Expected future gross premiums 551.9 306.7 569.6 315.5 
Expected future benefits and expenses1,728.7 799.6 1,755.4 805.2 
Limited-pay whole life
Expected future gross premiums 63.1 48.1 60.8 46.5 
Expected future benefits and expenses234.6 102.6 226.8 98.6 
Supplemental health
Expected future gross premiums 1,645.7 1,213.6 1,640.5 1,214.9 
Expected future benefits and expenses720.7 525.8 730.4 537.0 
SPIA (life contingent)
Expected future gross premiums — — — — 
Expected future benefits and expenses158.1 113.0 157.7 113.4 
The following table provides the weighted-average durations of LFPB, in years:
As of June 30,
20232022
Whole life18.018.0
Term life16.415.9
Experience life10.510.8
Limited-pay whole life 22.221.5
Supplemental health10.39.8
SPIA (life contingent) 7.77.7
The following table provides ranges of the weighted-average interest rates for LFPB:
As of June 30,
20232022
Whole life
Interest accretion rate
1.7% - 4.9%
1.7% - 5.0%
Current discount rate
4.7% - 5.2%
4.1% - 4.6%
Term life
Interest accretion rate
4.1% - 4.3%
4.1% - 4.4%
Current discount rate
5.2% - 5.2%
4.6% - 4.6%
Experience life
Interest accretion rate 6.1 %6.1 %
Current discount rate5.2 %4.7 %
Limited-pay whole life
Interest accretion rate3.9 %3.9 %
Current discount rate5.2 %4.7 %
Supplemental health
Interest accretion rate
1.7% - 2.7%
1.7% - 2.7%
Current discount rate
5.2% - 5.3%
4.5% - 5.0%
SPIA (life contingent)
Interest accretion rate
 1.7% - 4.1%
1.7% - 4.0%
Current discount rate
5.2% - 5.2%
4.5% - 4.5%
Deferred Policy Acquisition Costs
The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12:
($ in millions)
Whole LifeTerm LifeExperience LifeLimited-Pay Whole LifeIndexed Universal Life Supplemental HealthTotal Annuities
Balance, end of year December 31, 2020$17.8 $25.6 $2.6 $4.4 $11.3 $4.3 $137.7 
Adjustment for removal of related balances in AOCI— — 3.6 — 1.6 — 85.4 
Adjusted balance, beginning of year January 1, 2021$17.8 $25.6 $6.2 $4.4 $12.9 $4.3 $223.1 
DAC and Deferred Sales Inducements

The following tables roll-forward DAC for the periods indicated:
($ in millions) Three Months Ended June 30, 2023
Whole Life Term LifeExperience Life Limited-Pay Whole Life Indexed Universal LifeSupplemental HealthTotal Annuities
Balance, beginning of period $21.2 $30.7 $5.8 $6.8 $15.7 $6.7 $219.7 
Capitalizations0.7 1.5 0.1 0.3 0.7 0.7 3.7 
Amortization expense (0.3)(0.8)(0.2)(0.1)(0.3)(0.2)(3.7)
Experience adjustment — — — — — (0.2)(2.5)
Balance, end of period$21.6 $31.4 $5.7 $7.0 $16.1 $7.0 $217.2 
($ in millions)Six Months Ended June 30, 2023
Whole LifeTerm LifeExperience LifeLimited-Pay Whole LifeIndexed Universal LifeSupplemental HealthTotal Annuities
Balance, beginning of period$20.9 $30.0 $5.8 $6.7 $15.4 $6.2 $221.1 
Capitalizations1.3 2.8 0.1 0.5 1.2 1.3 7.7 
Amortization expense(0.6)(1.4)(0.2)(0.2)(0.5)(0.3)(7.4)
Experience adjustment— — — — — (0.2)(4.2)
Balance, end of period$21.6 $31.4 $5.7 $7.0 $16.1 $7.0 $217.2 
($ in millions)Year Ended December 31, 2022
Whole LifeTerm LifeExperience LifeLimited-Pay Whole LifeIndexed Universal LifeSupplemental HealthTotal Annuities
Balance, beginning of year $19.1 $27.5 $6.0 $5.6 $13.7 $4.9 $223.3 
Capitalizations3.0 5.0 0.2 1.4 2.5 1.8 15.5 
Amortization expense(1.2)(2.5)(0.4)(0.3)(0.8)(0.5)(15.8)
Experience adjustment— — — — — — (1.9)
Balance, end of year $20.9 $30.0 $5.8 $6.7 $15.4 $6.2 $221.1 
($ in millions) Year Ended December 31, 2021
Whole Life Term LifeExperience Life Limited-Pay Whole Life Indexed Universal LifeSupplemental HealthTotal Annuities
Balance, end of year December 31, 2020$17.8 $25.6 $2.6 $4.4 $11.3 $4.3 $137.7 
Adjustment for removal of related balances in AOCI— — 3.6 — 1.6 — 85.4 
Adjusted balance, beginning of year January 1, 2021$17.8 $25.6 $6.2 $4.4 $12.9 $4.3 $223.1 
Capitalizations2.4 4.2 0.2 1.5 1.7 1.1 17.3 
Amortization expense (1.1)(2.3)(0.4)(0.3)(0.8)(0.5)(16.0)
Experience adjustment — — — — (0.1)— (1.1)
Balance, end of year December 31, 2021$19.1 $27.5 $6.0 $5.6 $13.7 $4.9 $223.3 
The following table presents a reconciliation of DAC to the Consolidated Balance Sheets:
($ in millions)June 30, 2023December 31, 2022
Whole life$21.6 $20.9 
Term life31.4 30.0 
Experience life5.7 5.8 
Limited pay whole life7.0 6.7 
Indexed universal life16.1 15.4 
Supplemental health7.0 6.2 
Total annuities 217.2 221.1 
Reconciling item(1)
26.9 24.5 
Total $332.9 $330.6 
(1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment.
Market Risk Benefit, Activity
The following table summarizes the balance of and changes in the net liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12:
($ in millions)
Balance, end of year December 31, 2020$0.1 
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 6.8 
Adjustment for cumulative effect of changes in the instrument-specific credit risk at issuance 1.7 
Total adjustment for the difference between carrying amount and fair value 8.5 
Balance, beginning of year January 1, 20218.6 
Less: Reinsurance recoverable— 
Balance, beginning of year January 1, 2021, net of reinsurance $8.6 
The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the three and six months ended June 30, 2023 and 2022, respectively:
($ in millions) Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Balance, beginning of period$1.3 $4.0 $0.2 $4.8 
Balance, beginning of period, before effects of changes in the instrument-specific credit risk0.9 1.6 — 2.0 
Changes in market risk benefits(1)
(4.1)2.6 (3.2)2.2 
Balance, end of period(2)
$(3.2)$4.2 $(3.2)$4.2 
Effect of changes in the instrument-specific credit risk(0.4)0.4 (0.4)0.4 
Balance, end of period $(3.6)$4.6 $(3.6)$4.6 
Net amount at risk(3)
$28.1 $48.9 $28.1 $48.9 
Weighted-average attained age of contract holders63626362
(1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions.
(2) Balance, end of period, before the effect of changes in the instrument-specific credit risk.
(3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date.

The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets.
($ in millions)
As of June 30, 2023
As of December 31, 2022
(Asset)Liability Net(Asset)LiabilityNet
Deferred variable annuities $(6.2)$2.6 $(3.6)$(4.4)$4.7 $0.3 
Schedule of Changes in Accounting Policies
The following table presents the effect of the after-tax transition adjustments on consolidated shareholders' equity due to adoption of ASU 2018:
($ in millions)January 1, 2021
AOCIRetained Earnings
Liability for future policy benefits$(496.3)$(0.2)
Deferred policy acquisition costs71.1 — 
Deferred sales inducements— — 
Market risk benefits(1.3)(5.4)
Total$(426.5)$(5.6)