Accumulated Other Comprehensive Income (Loss) ("AOCI")

12 Months Ended

Dec. 31, 2023

NOTE 20. Accumulated Other Comprehensive Income (Loss) (“AOCI”):

The following table presents a summary of the changes in each component of AOCI for the years ended December 31, 2023, 2022 and 2021:


(in millions)	Unrealized gains (losses) on debt securities			Foreign currency translation adjustment			Pension benefit adjustment			Accumulated other comprehensive income (loss)
Balance at December 31, 2020	$	171.8		$	(38.0	)	$	(94.2	)	$	39.6
Change in unrealized gains (losses) on debt securities		(188.6	)		—			—			(188.6	)
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings		(0.4	)		—			—			(0.4	)
Change in foreign currency translation adjustment		—			(1.9	)		—			(1.9	)
Net actuarial gain		—			—			11.4			11.4
Amortization of net actuarial loss		—			—			6.8			6.8
Amortization of prior service credit		—			—			(1.3	)		(1.3	)
Tax effect		46.5			—			(4.5	)		42.0
Balance at December 31, 2021		29.3			(39.9	)		(81.8	)		(92.4	)
Change in unrealized gains (losses) on debt securities		(1,044.9	)		—			—			(1,044.9	)
Change in foreign currency translation adjustment		—			(43.3	)		—			(43.3	)
Net actuarial gain		—			—			57.4			57.4
Amortization of net actuarial loss		—			—			5.8			5.8
Amortization of prior service cost		—			—			0.2			0.2
Tax effect		264.0			1.1			(16.8	)		248.3
Balance at December 31, 2022		(751.6	)		(82.1	)		(35.2	)		(868.9	)
Change in unrealized gains (losses) on debt securities		262.3			—			—			262.3
Change in foreign currency translation adjustment		—			17.7			—			17.7
Net actuarial loss		—			—			(4.8	)		(4.8	)
Amortization of net actuarial loss		—			—			2.0			2.0
Tax effect		(64.3	)		(0.5	)		0.7			(64.1	)
Balance at December 31, 2023	$	(553.6	)	$	(64.9	)	$	(37.3	)	$	(655.8	)

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2023, 2022 and 2021:


	Unrealized gains (losses) on debt securities			Foreign currency translation adjustment			Pension benefit adjustment			Total other comprehensive income (loss)
	(in millions)
Year ended December 31, 2023
Pretax change before reclassifications	$	181.4		$	17.7		$	(4.8	)	$	194.3
Reclassifications out of AOCI		80.9			—			2.0			82.9
Tax effect		(64.3	)		(0.5	)		0.7			(64.1	)
Total other comprehensive income (loss), net of tax	$	198.0		$	17.2		$	(2.1	)	$	213.1
Year ended December 31, 2022
Pretax change before reclassifications	$	(1,181.4	)	$	(43.3	)	$	57.4		$	(1,167.3	)
Reclassifications out of AOCI		136.5			—			6.0			142.5
Tax effect		264.0			1.1			(16.8	)		248.3
Total other comprehensive income (loss), net of tax	$	(780.9	)	$	(42.2	)	$	46.6		$	(776.5	)
Year ended December 31, 2021
Pretax change before reclassifications	$	(168.8	)	$	(1.9	)	$	11.4		$	(159.3	)
Reclassifications out of AOCI		(20.2	)		—			5.5			(14.7	)
Tax effect		46.5			—			(4.5	)		42.0
Total other comprehensive income (loss), net of tax	$	(142.5	)	$	(1.9	)	$	12.4		$	(132.0	)

The following table presents the effects of the reclassifications out of AOCI on the respective line items in the consolidated statements of income:


	Year ended December 31,
(in millions)	2023			2022			2021			Affected line items
Unrealized gains (losses) on debt securities:
Net realized (losses) gains on sales of debt securities	$	(80.9	)	$	(136.5	)	$	20.3		Net investment (losses) gains
Credit losses recognized on debt securities		—			—			(0.1	)	Net investment (losses) gains
Pretax total	$	(80.9	)	$	(136.5	)	$	20.2
Tax effect	$	19.8		$	36.2		$	(5.0	)
Pension benefit adjustment (1):
Amortization of net actuarial loss	$	(2.0	)	$	(5.8	)	$	(6.8	)	Other operating expenses
Amortization of prior service (cost) credit		—			(0.2	)		1.3		Other operating expenses
Pretax total	$	(2.0	)	$	(6.0	)	$	(5.5	)
Tax effect	$	0.5		$	1.6		$	1.5

(1)

Amounts are components of net periodic cost. See Note 16 Employee Benefit Plans for additional details.