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Long-Duration Insurance Contracts (Tables)

6 Months Ended

Jun. 30, 2023

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 Life		Term Life		Experience Life		Limited 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 assumptions	111.5		27.3		433.0		18.2		23.0		20.6
Change in cash flow assumptions, effect of net premiums exceeding gross premiums	0.4		—		—		—		—		—


Adjusted balance, beginning of year January 1, 2021	330.6		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 rate	246.6		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, 2023	247.6		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 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 April 1, 2023	515.1		365.0		892.5		84.4		437.7		105.9
April 1, 2023 balance at original discount rate	585.4		405.2		801.5		100.3		530.6		113.3
Effect of:
Changes in cash flow assumptions	—		(5.6)		—		—		—		—
Actual variances from expected experience	1.1		2.2		0.5		0.9		1.8		—
Adjusted balance at April 1, 2023	586.5		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 rate	245.9		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, 2023	247.7		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, 2023	493.6		347.0		867.5		79.4		431.7		103.3
January 1, 2023 balance at original discount rate	581.9		401.0		805.2		98.6		537.1		113.4
Effect of:
Changes in cash flow assumptions	—		(5.6)		—		—		—		—
Actual variances from expected experience	1.9		0.7		0.9		1.5		0.1		(0.5)
Adjusted balance at January 1, 2023	583.8		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.

(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.

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 assumptions	5.2		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, 2022	251.7		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 rate	245.9		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, 2022	215.1		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 assumptions	5.2		21.5		11.0		2.0		13.8		—
Actual variances from expected experience	7.7		(4.7)		3.6		1.4		(30.0)		0.4
Adjusted balance at January 1, 2022	579.0		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 rate	581.9		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, 2022	493.6		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.

(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.

(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 assumptions	111.5		27.3		433.0		18.2		23.0		20.6
Change in cash flow assumptions, effect of net premiums exceeding gross premiums	0.4		—		—		—		—		—
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, 2021	330.6		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 rate	143.5		200.8		55.2		22.0		218.2		—
Effect of:
Change in cash flow assumptions	2.4		(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, 2021	154.7		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 rate	157.6		221.1		55.8		27.2		217.5		—
Effect of changes in discount rate assumptions	25.4		32.0		18.8		2.5		4.0		—
Balance at December 31, 2021	183.0		253.1		74.6		29.7		221.5		—

Present Value of Expected Future Policy Benefits
Balance at January 1, 2021	507.1		364.7		1,269.3		95.0		626.9		136.5
January 1, 2021 balance at original discount rate	362.5		294.0		813.5		73.4		589.1		115.9
Effect of:
Changes in cash flow assumptions	2.8		(4.8)		(3.6)		—		(3.0)		—
Actual variances from expected experience	8.7		7.2		6.6		1.1		6.2		(0.4)
Adjusted balance at January 1, 2021	374.0		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 rate	386.3		319.5		802.5		86.6		572.6		111.6
Effect of changes in discount rate assumptions	114.4		51.1		370.2		16.3		8.0		13.1
Balance at December 31, 2021	500.7		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.

(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.

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,
	2023		2022		2023		2022
Whole life	$	6.7	$	6.2	$	13.3	$	12.3
Term life	11.4		10.4		22.2		20.3
Experience life	7.9		8.3		16.1		16.8
Limited-pay whole life	1.7		2.5		3.3		4.3
Supplemental health	30.0		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 expense				Interest expense
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Whole life	$	2.9	$	2.9	$	5.8	$	5.6
Term life	1.2		1.1		2.4		2.2
Experience life	10.9		11.0		21.9		22.1
Limited-pay whole life	0.7		0.6		1.3		1.2
Supplemental health	2.1		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		Discounted		Undiscounted		Discounted
Whole life
Expected future gross premiums	$	473.5	$	325.1	$	469.0	$	322.5
Expected future benefits and expenses	1,134.3		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 expenses	693.9		406.4		678.0		401.0
Experience Life
Expected future gross premiums	551.9		306.7		569.6		315.5
Expected future benefits and expenses	1,728.7		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 expenses	234.6		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 expenses	720.7		525.8		730.4		537.0
SPIA (life contingent)
Expected future gross premiums	—		—		—		—
Expected future benefits and expenses	158.1		113.0		157.7		113.4

The following table provides the weighted-average durations of LFPB, in years:


	As of June 30,
	2023	2022
Whole life	18.0	18.0
Term life	16.4	15.9
Experience life	10.5	10.8
Limited-pay whole life	22.2	21.5
Supplemental health	10.3	9.8
SPIA (life contingent)	7.7	7.7

The following table provides ranges of the weighted-average interest rates for LFPB:


	As of June 30,
	2023		2022
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 rate	5.2	%	4.7	%
Limited-pay whole life
Interest accretion rate	3.9	%	3.9	%
Current discount rate	5.2	%	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%

Schedule of Liability for Future Policy Benefits, by Product Segment

The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets:


($ in millions)	June 30, 2023		December 31, 2022
Whole life	$	289.4	$	279.5
Term life	120.3		112.4
Experience life	803.5		799.3
Limited-pay whole life	53.7		49.6
Supplemental health	254.5		264.4
SPIA (life contingent)	103.6		103.3
Limited-pay whole life DPL	3.4		3.2
SPIA (life contingent) DPL	1.0		0.8
Reconciling items(1)	111.5		105.5
Total	$	1,740.9	$	1,718.0

(1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves.

Fair Value Measurement Inputs and Valuation Techniques

The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3.

($ in millions)

Financial
Assets

Fair Value as of

June 30, 2023

Valuation Technique(s)

Unobservable Inputs

Range

(Weighted Average)

and Single Point Best Estimate(1)

Municipal bonds

63.9

discounted cash flow

option adjusted spread

308 bps

Corporate bonds

311.5

discounted cash flow

yield

6.1%

vendor priced

79.64

discounted cash flow

yield

11.0%

market comparable

EV / Fwd EBITDA (x)

5.92x

discounted cash flow

discount rate

6.2% - 10.7%

discounted cash flow

exit cap

6.2%

discounted cash flow

option adjusted spread

241 bps

Mortgage-backed and other asset-backed securities

101.4

vendor price

haircut

0.01% -0.3%

discounted cash flow

discount margin

39.5%

discounted cash flow

discount rate

16.0% - 21.0%

discounted cash flow

median comparable yield

20.7% - 43.2%

discounted cash flow

yield

6.4% - 6.5%

discounted cash flow

LIBOR

2.3%

discounted cash flow

PDI spread

5.5%

discounted cash flow

SBL spread

4.5%

discounted cash flow

weighting

17.0% - 83.0%

discounted cash flow

CPR

20.0%

discounted cash flow

default rate annual

4.0%

discounted cash flow

recovery

65.0%

discounted cash flow

I spread

175 bps

discounted cash flow

N spread

463 bps

discounted cash flow

T Spread

226 bps

market comparable

median price

81.34

Equity securities

2.0

black-scholes

volatility

low 28.0% - high 44.0%

black-scholes

time to exit

2.67 bps

market comparable

price/book ExAOCI

1.06x

($ in millions)

Financial
Liabilities

Fair Value as of

June 30, 2023

Valuation Technique(s)

Unobservable Inputs

Range

(Weighted Average)

and Single Point Best Estimate(1)

Derivatives
embedded in
fixed indexed annuity products

87.2

discounted cash flow

lapse rate

5.4%

mortality multiplier(4)

67.8%

option budget

0.9% - 3.8%

non-performance adjustment(5)

5.0%

Net MRBs

(3.6)

discounted cash flow

lapse rate

5.3%

mortality multiplier(4)

67.8%

(1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate.

(2) "N spread" is the interpolated weighted average life point on the swap curve.

(3) "T spread" is a specific point on the OTR curve.

(4) Mortality multiplier is applied to the Annuity 2000 table.

(5) Determined as a percentage of the risk-free rate.

The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB:


	June 30, 2023
	Whole Life		Term Life	Experience Life		Limited-Pay Whole Life		SPIA (life contingent)
Mortality
Actual experience	0.7	%	0.1% - 0.4%	1.7	%	0.1	%	N.M.
Expected experience	0.7	%	0.1% - 1.2%	1.6	%	0.2	%	N.M.
Lapses
Actual experience	3.4	%	3.6% - 5.6%	3.1	%	3.6	%	N.M.
Expected experience	4.7	%	5.6% - 25.9%	3.1	%	5.2	%	N.M.

	June 30, 2022
	Whole Life		Term Life	Experience Life		Limited-Pay Whole Life		SPIA (life contingent)
Mortality
Actual experience	0.8	%	0.1% - 0.1%	1.7	%	0.2	%	N.M.
Expected experience	0.7	%	0.1% - 0.1%	1.4	%	0.2	%	N.M.
Lapses
Actual experience	3.1	%	5.0% - 64.1%	3.4	%	3.1	%	N.M.
Expected experience	5.8	%	4.9% - 6.0%	3.2	%	7.4	%	N.M.

Policyholder Account Balance

The following tables summarize balances of and changes in policyholders' account balances:


($ in millions)	Three Months Ended June 30, 2023
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at April 1, 2023	$	49.9		$	63.5		$	4,577.4		$	498.4		$	33.8
Premiums received(1)	$	3.1		$	(0.2)		$	59.0		$	5.4		$	1.0
Surrenders and withdrawals(2)	(0.3)			(0.6)			(103.9)			(18.6)			(0.1)
Benefit payments(3)	—			(0.4)			(17.8)			(0.9)			(1.4)
Net transfers from (to) separate account	(0.2)			—			7.9			(2.4)			—
Interest credited(4)	0.2			0.7			39.8			0.9			0.2
Other	(0.7)			—			1.1			(1.6)			—
Balance at June 30, 2023	$	52.0		$	63.0		$	4,563.5		$	481.2		$	33.5
Weighted-average crediting rate	(0.1)		%	(5.0)		%	—		%	—		%	(3.0)		%
Net amount at risk(5)	$	—		$	—		$	(23.3)		$	—		$	—
Cash surrender value	$	32.9		$	62.8		$	4,540.9		$	486.7		$	33.7

($ in millions)	Three Months Ended June 30, 2022
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at April 1, 2022	$	41.0		$	65.9		$	4,548.2		$	518.2		$	37.0
Premiums received(1)	$	2.5		$	—		$	47.5		$	8.1		$	0.6
Surrenders and withdrawals(2)	(0.4)			(0.8)			(59.5)			(9.4)			(0.1)
Benefit payments(3)	—			(0.4)			(14.4)			(0.7)			(1.5)
Net transfers from (to) separate account	—			—			15.8			(0.3)			—
Interest credited(4)	0.3			0.7			38.3			1.3			0.3
Other	(0.8)			—			(2.2)			1.0			—
Balance at June 30, 2022	$	42.6		$	65.4		$	4,573.7		$	518.2		$	36.3
Weighted-average crediting rate	(1.4)		%	—		%	—		%	(0.2)		%	—		%
Net amount at risk(5)	$	—		$	—		$	12.1		$	—		$	—
Cash surrender value	$	1.4		$	(0.5)		$	26.3		$	(1.2)		$	(0.7)

(1) Premiums received represents premiums collected from policyholder during the period of in force business.

(2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance.

(3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods.

(4) Interest credited represents interest earned and credited to policyholders' account balance during the periods.

(5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date.


($ in millions)	Six Months Ended June 30, 2023
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at January 1, 2023	$	47.6		$	64.3		$	4,591.1		$	510.3		$	34.4
Premiums received(1)	$	6.7		$	(0.4)		$	113.9		$	10.5		$	2.1
Surrenders and withdrawals(2)	(0.7)			(1.5)			(202.0)			(32.5)			(0.2)
Benefit payments(3)	—			(0.9)			(36.9)			(1.5)			(3.1)
Net transfers from (to) separate account	(0.2)			—			14.5			(3.3)			—
Interest credited(4)	0.2			1.5			79.9			0.9			0.5
Other	(1.6)			—			3.0			(3.2)			(0.2)
Balance at June 30, 2023	$	52.0		$	63.0		$	4,563.5		$	481.2		$	33.5
Weighted-average crediting rate	—		%	—		%	3.6		%	—		%	—		%
Net amount at risk(5)	$	—		$	—		$	16.2		$	—		$	—
Cash surrender value	$	—		$	—		$	109.9		$	—		$	—

($ in millions)	Six Months Ended June 30, 2022
	Indexed Universal Life			Experience Life			Fixed Account Annuities			Fixed Indexed Account Annuities			SPIA (non-life contingent)
Balance at January 1, 2022	$	39.1		$	66.2		$	4,532.7		$	522.6		$	37.7
Premiums received(1)	$	4.7		$	—		$	94.7		$	17.4		$	1.4
Surrenders and withdrawals(2)	(0.6)			(1.5)			(119.8)			(20.3)			(0.4)
Benefit payments(3)	—			(0.8)			(32.9)			(1.8)			(3.0)
Net transfers from (to) separate account	—			—			26.8			(0.4)			—
Interest credited(4)	0.8			1.5			77.2			3.1			0.6
Other	(1.4)			—			(5.0)			(2.4)			—
Balance at June 30, 2022	$	42.6		$	65.4		$	4,573.7		$	518.2		$	36.3
Weighted-average crediting rate	4.1		%	5.0		%	3.5		%	1.2		%	3.0		%
Net amount at risk(5)	$	—		$	—		$	78.5		$	—		$	—
Cash surrender value	$	27.4		$	64.7		$	4,515.7		$	503.0		$	35.9

(1) Premiums received represents premiums collected from policyholder during the period of in force business.

(2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance.

(3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods.

(4) Interest credited represents interest earned and credited to policyholders' account balance during the periods.

(5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date.

The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets:


($ in millions)	June 30, 2023		December 31, 2022
Indexed universal life	$	52.0	$	47.6
Experience Life	63.0		64.3
Fixed account annuities	4,563.5		4,591.1
Fixed indexed account annuities	481.2		510.3
SPIA (non-life contingent)	33.5		34.4
Reconciling items(1)	13.0		12.9
Total	$	5,206.2	$	5,260.6

(1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs.

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The following tables present the gross account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:


($ in millions)	June 30, 2023
	At Guaranteed Minimum		1-50 Basis Points Above		51-150 Basis Points Above		Greater Than 150 Basis Points Above		Total(1)
Guaranteed minimum crediting rates:
Less than 2%	$	81.5	$	327.4	$	372.3	$	170.8	$	952.0
Equal to 2% but less than 3%	214.5		46.7		9.4		0.8		271.4
Equal to 3% but less than 4%	626.5		12.2		0.7		—		639.4
Equal to 4% but less than 5%	2,693.4		—		—		—		2,693.4
5% or higher	90.3		—		—		—		90.3
Total	$	3,706.2	$	386.3	$	382.4	$	171.6	$	4,646.5

($ in millions)	December 31, 2022
	At Guaranteed Minimum		1-50 Basis Points Above		51-150 Basis Points Above		Greater Than 150 Basis Points Above		Total(1)
Guaranteed minimum crediting rates:
Less than 2%	$	262.5	$	370.6	$	214.4	$	96.1	$	943.6
Equal to 2% but less than 3%	256.1		19.8		4.7		—		280.6
Equal to 3% but less than 4%	667.4		0.4		0.4		—		668.2
Equal to 4% but less than 5%	2,706.1		—		—		—		2,706.1
5% or higher	91.7		—		—		—		91.7
Total	$	3,983.8	$	390.8	$	219.5	$	96.1	$	4,690.2

(1) Excludes products not containing a fixed guaranteed minimum crediting rate.

Separate Account, Liability

The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets(1):


($ in millions)	Retirement Services
	Variable Account Annuities
	June 30, 2023		December 31, 2022
Balance, beginning of year	$	2,792.3	$	3,441.0
Deposits	114.1		240.3
Withdrawals	(105.0)		(186.8)
Net transfers	(11.2)		(38.1)
Fees and charges	(18.4)		(36.8)
Market appreciation (depreciation)	330.2		(619.7)
Other	(3.5)		(7.6)
Balance, end of period	$	3,098.5	$	2,792.3

(1) The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access.

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, 2021	8.6
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,
	2023		2022		2023		2022

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 risk	0.9		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 holders	63		62		63		62

(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)		Liability		Net
Deferred variable annuities	$	(6.2)	$	2.6	$	(3.6)	$	(4.4)	$	4.7	$	0.3

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 Life		Term Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total 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 Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total Annuities
Balance, beginning of period	$	21.2	$	30.7	$	5.8	$	6.8	$	15.7	$	6.7	$	219.7
Capitalizations	0.7		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 Life		Term Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total Annuities
Balance, beginning of period	$	20.9	$	30.0	$	5.8	$	6.7	$	15.4	$	6.2	$	221.1
Capitalizations	1.3		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 Life		Term Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total Annuities
Balance, beginning of year	$	19.1	$	27.5	$	6.0	$	5.6	$	13.7	$	4.9	$	223.3
Capitalizations	3.0		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 Life		Experience Life		Limited-Pay Whole Life		Indexed Universal Life		Supplemental Health		Total 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
Capitalizations	2.4		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, 2023		December 31, 2022
Whole life	$	21.6	$	20.9
Term life	31.4		30.0
Experience life	5.7		5.8
Limited pay whole life	7.0		6.7
Indexed universal life	16.1		15.4
Supplemental health	7.0		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.

Deferred Sale Inducement Cost

The following table rolls-forward the DSI balance as of and for the three and six months ended June 30, 2023:


($ in millions)	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Balance, beginning of period	$	15.4	$	15.9
Capitalizations	—		—
Amortization expense	(0.3)		(0.6)
Experience adjustment	(0.2)		(0.4)
Balance, end of period	$	14.9	$	14.9