XML 41 R22.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Company's Fair Value Hierarchy Measured at Recurring Basis
The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. During the three months ended March 31, 2024 and 2023, there were no transfers between Level 1 and Level 2. As of March 31, 2024, Level 3 invested assets comprised 9.2% of the Company’s total investment portfolio at fair value.
($ in millions)Carrying
Amount		Fair
Value		Fair Value Measurements at
Reporting Date Using
 Level 1Level 2Level 3
March 31, 2024
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally
   sponsored agency obligations:
Mortgage-backed securities$677.7 $677.7 $— $677.7 $— 
Other, including U.S. Treasury securities391.2 391.2 45.0 346.2 — 
Municipal bonds1,207.5 1,207.5 — 1,134.3 73.2 
Foreign government bonds21.9 21.9 — 21.9 — 
Corporate bonds1,829.9 1,829.9 8.6 1,475.8 345.5 
Other asset-backed securities1,214.5 1,214.5 — 1,125.8 88.7 
Total fixed maturity securities5,342.7 5,342.7 53.6 4,781.7 507.4 
Equity securities84.7 84.7 18.1 64.1 2.5 
Short-term investments69.4 69.4 69.4 — — 
Other investments23.1 23.1 — 23.1 — 
Totals$5,519.9 $5,519.9 $141.1 $4,868.9 $509.9 
Separate Account variable annuity assets(1)
$3,516.9 $3,516.9 $3,516.9 $— $— 
Financial Liabilities(2)
$85.0 $85.0 $— $4.2 $80.8 
December 31, 2023
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally
   sponsored agency obligations:
Mortgage-backed securities$653.2 $653.2 $— $653.2 $— 
Other, including U.S. Treasury securities388.8 388.8 45.6 343.2 — 
Municipal bonds
1,270.1 1,270.1 — 1,196.1 74.0 
Foreign government bonds
22.1 22.1 — 22.1 — 
Corporate bonds
1,772.7 1,772.7 10.1 1,420.1 342.5 
Other asset-backed securities
1,128.4 1,128.4 — 1,030.9 97.5 
Total fixed maturity securities5,235.3 5,235.3 55.7 4,665.6 514.0 
Equity securities86.2 86.2 17.9 63.8 4.5 
Short-term investments132.9 132.9 132.9 — — 
Other investments19.0 19.0 — 19.0 — 
Totals$5,473.4 $5,473.4 $206.5 $4,748.4 $518.5 
Separate Account (variable annuity) assets(1)
$3,294.1 $3,294.1 $3,294.1 $— $— 
Financial Liabilities(2)
$86.0 $86.0 $— $3.6 $82.4 
(1)    Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of the Separate Account variable annuity assets.
(2) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.
Schedule of Table for Reconciliations for All Level 3 Assets Measured at Fair Value on a Recurring Basis
The reconciliation for all financial assets and financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows:
($ in millions)Financial Assets
Financial
Liabilities(1)
Municipal
Bonds		Corporate
Bonds

Mortgage-Backed
and Other
Asset-
Backed
Securities(2)
Total
Fixed
Maturity
Securities		Equity
Securities		Total
Beginning balance, January 1, 2024$74.0 $342.5 $97.5 $514.0 $4.5 $518.5 $82.4 
Transfers into Level 3(3)
— — — — — — — 
Transfers out of Level 3(3)
— (4.4)— (4.4)— (4.4)— 
Total gains or losses
Net investment gains (losses) included in net income
— — — — 0.1 0.1 — 
 Net investment (gains) losses included in net income related to financial liabilities
— — — — — — 1.3 
Net unrealized gains (losses)
   included in OCI
(0.7)(0.6)2.4 1.1 — 1.1 (0.1)
Purchases— 14.1 — 14.1 — 14.1 — 
Issuances— — — — — — 1.4 
Sales— — — — — — — 
Settlements— — — — — — — 
Paydowns, maturities and distributions(0.1)(6.1)(11.2)(17.4)(2.1)(19.5)(4.2)
Ending balance, March 31, 2024$73.2 $345.5 $88.7 $507.4 $2.5 $509.9 $80.8 
Beginning balance, January 1, 2023$54.4 $261.3 $107.6 $423.3 $2.0 $425.3 $91.0 
Transfers into Level 3(3)
— 5.9 0.4 6.3 — 6.3 — 
Transfers out of Level 3(3)
— — — — — — — 
Total gains or losses
Net investment gains (losses) included in net income
— — — — — — — 
 Net investment (gains) losses included in net income related to financial liabilities
— — — — — — 0.2 
Net unrealized gains (losses)
   included in OCI
1.2 0.9 (0.4)1.7 — 1.7 — 
Purchases— 19.0 0.2 19.2 — 19.2 — 
Issuances— — — — — — 2.1 
Sales— (2.6)— (2.6)— (2.6)— 
Settlements— — — — — — — 
Paydowns, maturities and distributions(0.2)(0.5)(3.2)(3.9)— (3.9)(3.4)
Ending balance, March 31, 2023
$55.4 $284.0 $104.6 $444.0 $2.0 $446.0 $89.9 
(1)Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.
(2)Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities.
(3)Transfers into and out of Level 3 during the three months ended March 31, 2024 and 2023 were related to changes in the primary pricing source and changes in observability of external information used in determining fair value. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined.
Schedule of Fair Value Measurement Inputs and Valuation Techniques
Level 3 Assets and Liabilities by Price Source
The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources:
($ in millions)
Total
Internal
External
March 31, 2024
Financial Assets
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities$— $— $— 
Municipal bonds73.2 — 73.2 
Corporate bonds345.5 185.5 160.0 
Other asset-backed securities88.7 — 88.7 
Total fixed maturity securities507.4 185.5 321.9 
Equity securities2.5 — 2.5 
Totals$509.9 $185.5 $324.4 
Financial Liabilities(1)
$80.8 $80.8 $— 
December 31, 2023
Financial Assets
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities$— $— $— 
Municipal bonds74.0 — 74.0 
Corporate bonds342.5 180.4 162.1 
Other asset-backed securities97.5 — 97.5 
Total fixed maturity securities514.0 180.4 333.6 
Equity securities4.5 — 4.5 
Totals$518.5 $180.4 $338.1 
Financial Liabilities(1)
$82.4 $82.4 $— 
(1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.

External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available.
Quantitative Information about Level 3 Fair Value Measurements
The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized with Level 3.
($ in millions)

Fair Value
as of
March 31, 2024
Valuation Technique(s)Unobservable Inputs
Range
(Weighted Average)
and Single Point Best Estimate(1)
Impact of Increase in Input on Fair Value
Financial Assets
Corporate bonds
$185.5 
discounted cash flow
yield
4.5% - 16.2%
decrease
discounted cash flow
option adjusted spread
116 bps - 852 bps
decrease
Financial Liabilities
Derivatives embedded in fixed indexed annuity products
$87.1 discounted cash flowlapse rate5.9%decrease
mortality multiplier(2)
69.4%decrease
      option budget 
0.9% - 3.8%
increase
non-performance adjustment(3)
5.0%decrease
Net MRBs$(6.3)discounted cash flow lapse rate 5.9%decrease
mortality multiplier(2)
69.4%increase
(1)    When a range of unobservable inputs is not readily available, the Company uses a single point best estimate.
(2)    Mortality multiplier is applied to the Annuity 2000 table.
(3)    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:
March 31, 2024
Whole Life Term LifeExperience Life Limited-Pay Whole Life SPIA (life contingent)
Mortality
Actual experience0.7 %
0.1% - 0.2%
2.1 %— %N.M.
Expected experience0.7 %
0.1% - 0.4%
1.7 %0.3 %N.M.
Lapses
Actual experience3.4 %
3.6% - 22.0%
3.4 %3.6 %N.M.
Expected experience4.3 %
5.1% - 6.9%
3.0 %4.6 %N.M.
March 31, 2023
Whole LifeTerm LifeExperience LifeLimited-Pay Whole LifeSPIA (life contingent)
Mortality
Actual experience0.7 %
0.1% - 0.3%
1.9 %— %N.M.
Expected experience0.7 %
0.1% - 0.6%
1.6 %0.2 %N.M.
Lapses
Actual experience3.6 %
5.6% - 8.3%
3.4 %3.6 %N.M.
Expected experience4.6 %
2.8% - 5.6%
3.0 %5.1 %N.M.
Schedule of Fair Value Assets and Liabilities Measured on Nonrecurring Basis
($ in millions)Carrying
Amount		Fair
Value		Fair Value Measurements at
Reporting Date Using
Level 1Level 2Level 3
March 31, 2024
Financial Assets
Other investments$218.7 $222.0 $— $34.9 $187.1 
Deposit asset on reinsurance2,472.4 2,192.2 — — 2,192.2 
Financial Liabilities
Policyholders' account balances
5,052.6 4,657.8 — — 4,657.8 
Reverse repurchase agreement
50.0 51.8 — 51.8 — 
Other policyholder funds941.1 941.1 — 933.7 7.4 
Long-term debt546.2 569.8 — 569.8 — 
December 31, 2023
Financial Assets
Other investments$218.4 $221.7 $— $33.8 $187.9 
Deposit asset on reinsurance2,496.6 2,259.6 — — 2,259.6 
Financial Liabilities     
Policyholders' account balances
4,996.3 4,861.8 — — 4,861.8 
Other policyholder funds 916.0 916.0 — 908.7 7.3 
Long-term debt546.0 571.4 — 571.4 —