XML 37 R26.htm IDEA: XBRL DOCUMENT v3.21.2

INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Accumulated Other Comprehensive Income

These amounts, included in shareholders' equity as of June 30, 2021 and December 31, 2020, were as follows (dollars in millions):

			June 30, 2021						December 31, 2020
Net unrealized gains on investments having no allowance for credit losses			$	3,113.2					$	3,466.3
Unrealized losses on investments with an allowance for credit losses			(6.1)						(10.0)
Adjustment to present value of future profits (a)			(9.1)						(10.2)
Adjustment to deferred acquisition costs			(450.2)						(458.0)
Adjustment to insurance liabilities			(99.4)						(197.5)
Deferred income tax liabilities			(552.9)						(604.5)
Accumulated other comprehensive income			$	1,995.5					$	2,186.1

________

(a)The present value of future profits is the value assigned to the right to receive future cash flows from contracts existing at September 10, 2003, the date Conseco, Inc., an Indiana corporation, emerged from bankruptcy.

Schedule of Fixed Maturities for Available for Sale Securities

At June 30, 2021, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):

			Amortized cost						Gross unrealized gains						Gross unrealized losses						Allowance for credit losses						Estimated fair value
Corporate securities			$	12,888.6					$	2,370.5					$	(13.3)					$	(2.3)					$	15,243.5
United States Treasury securities and obligations of United States government corporations and agencies			164.3						51.0						(.7)						—						214.6
States and political subdivisions			2,454.7						346.7						(.5)						—						2,800.9
Foreign governments			67.0						13.0						—						—						80.0
Asset-backed securities			962.5						50.8						(1.2)						—						1,012.1
Agency residential mortgage-backed securities			44.7						4.9						—						—						49.6
Non-agency residential mortgage-backed securities			1,732.3						173.2						(.2)						—						1,905.3
Collateralized loan obligations			457.8						2.5						(.7)						—						459.6
Commercial mortgage-backed securities			1,926.1						116.4						(1.5)						—						2,041.0
Total fixed maturities, available for sale			$	20,698.0					$	3,129.0					$	(18.1)					$	(2.3)					$	23,806.6

At December 31, 2020, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):

			Amortized cost						Gross unrealized gains						Gross unrealized losses						Allowance for credit losses						Estimated fair value
Corporate securities			$	12,054.7					$	2,696.3					$	(9.9)					$	(1.9)					$	14,739.2
United States Treasury securities and obligations of United States government corporations and agencies			163.8						71.9						(.2)						—						235.5
States and political subdivisions			2,296.6						358.9						(1.3)						(.3)						2,653.9
Foreign governments			82.4						20.4						—						—						102.8
Asset-backed securities			1,024.4						45.1						(7.4)						—						1,062.1
Agency residential mortgage-backed securities			52.7						5.7						—						—						58.4
Non-agency residential mortgage-backed securities			1,913.5						181.2						(2.1)						—						2,092.6
Collateralized loan obligations			461.9						.6						(3.6)						—						458.9
Commercial mortgage-backed securities			1,871.1						116.4						(7.3)						—						1,980.2
Total fixed maturities, available for sale			$	19,921.1					$	3,496.5					$	(31.8)					$	(2.2)					$	23,383.6

Schedule of Investments Classified by Contractual Maturity Date

The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at June 30, 2021, by contractual maturity.  Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.  Structured securities (such as asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities, collectively referred to as "structured securities") frequently include provisions for periodic principal payments and permit periodic unscheduled payments.

			Amortized cost						Estimated fair value
			(Dollars in millions)
Due in one year or less			$	237.0					$	240.5
Due after one year through five years			1,081.0						1,150.7
Due after five years through ten years			1,440.6						1,584.1
Due after ten years			12,816.0						15,363.7
Subtotal			15,574.6						18,339.0
Structured securities			5,123.4						5,467.6
Total fixed maturities, available for sale			$	20,698.0					$	23,806.6

The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at December 31, 2020, by contractual maturity.

			Amortized cost						Estimated fair value
			(Dollars in millions)
Due in one year or less			$	388.7					$	396.4
Due after one year through five years			987.4						1,052.9
Due after five years through ten years			1,540.4						1,715.6
Due after ten years			11,681.0						14,566.5
Subtotal			14,597.5						17,731.4
Structured securities			5,323.6						5,652.2
Total fixed maturities, available for sale			$	19,921.1					$	23,383.6

Schedule of Unrealized Loss on Investments

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at June 30, 2021 (dollars in millions):

						Less than 12 months												12 months or greater												Total
Description of securities						Fair value						Unrealized losses						Fair value						Unrealized losses						Fair value						Unrealized losses
Corporate securities						$	211.7					$	(7.2)					$	9.2					$	(.1)					$	220.9					$	(7.3)
United States Treasury securities and obligations of United States government corporations and agencies						18.9						(.7)						—						—						18.9						(.7)
States and political subdivisions						41.7						(.5)						—						—						41.7						(.5)
Asset-backed securities						25.4						—						29.4						(1.2)						54.8						(1.2)
Non-agency residential mortgage-backed securities						37.6						(.1)						16.3						(.1)						53.9						(.2)
Collateralized loan obligations						99.3						(.4)						76.3						(.3)						175.6						(.7)
Commercial mortgage-backed securities						115.4						(.3)						59.9						(1.2)						175.3						(1.5)
Total fixed maturities, available for sale						$	550.0					$	(9.2)					$	191.1					$	(2.9)					$	741.1					$	(12.1)

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2020 (dollars in millions):

						Less than 12 months												12 months or greater												Total
Description of securities						Fair value						Unrealized losses						Fair value						Unrealized losses						Fair value						Unrealized losses
Corporate securities						$	110.0					$	(2.6)					$	5.6					$	(.2)					$	115.6					$	(2.8)
United States Treasury securities and obligations of United States government corporations and agencies						17.9						(.2)						—						—						17.9						(.2)
States and political subdivisions						8.6						(.1)						—						—						8.6						(.1)
Asset-backed securities						146.9						(4.1)						26.0						(3.3)						172.9						(7.4)
Non-agency residential mortgage-backed securities						173.2						(1.5)						42.2						(.6)						215.4						(2.1)
Collateralized loan obligations						151.4						(1.5)						178.7						(2.1)						330.1						(3.6)
Commercial mortgage-backed securities						277.0						(6.3)						72.3						(1.0)						349.3						(7.3)
Total fixed maturities, available for sale						$	885.0					$	(16.3)					$	324.8					$	(7.2)					$	1,209.8					$	(23.5)

Summary of Changes in the Allowance for Current Expected Credit Losses

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three months ended June 30, 2021 (dollars in millions):

			Corporate securities						States and political subdivisions																								Total
Allowance at March 31, 2021			$	4.9					$	.4																							$	5.3
Additions for securities for which credit losses were not previously recorded			.2						—																								.2
Additions for purchased securities with deteriorated credit			—						—																								—
Additions (reductions) for securities where an allowance was previously recorded			(2.5)						(.4)																								(2.9)
Reduction for securities sold during the period			(.3)						—																								(.3)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded			—						—																								—
Write-offs			—						—																								—
Recoveries of previously written-off amount			—						—																								—
Allowance at June 30, 2021			$	2.3					$	—																							$	2.3

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the six months ended June 30, 2021 (dollars in millions):

			Corporate securities						States and political subdivisions																								Total
Allowance at December 31, 2020			$	1.9					$	.3																							$	2.2
Additions for securities for which credit losses were not previously recorded			1.9						.1																								2.0
Additions for purchased securities with deteriorated credit			—						—																								—
Additions (reductions) for securities where an allowance was previously recorded			(1.0)						(.4)																								(1.4)
Reduction for securities sold during the period			(.5)						—																								(.5)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded			—						—																								—
Write-offs			—						—																								—
Recoveries of previously written-off amount			—						—																								—
Allowance at June 30, 2021			$	2.3					$	—																							$	2.3

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three months ended June 30, 2020 (dollars in millions):

			Corporate securities						States and political subdivisions						Foreign governments						Non-agency residential mortgage-backed securities						Asset-backed securities						Total
Allowance at March 31, 2020			$	18.2					$	.6					$	.1					$	1.0					$	—					$	19.9
Additions for securities for which credit losses were not previously recorded			4.2						—						—						—						.3						4.5
Additions for purchased securities with deteriorated credit			—						—						—						—						—						—
Additions (reductions) for securities where an allowance was previously recorded			(11.9)						(.1)						(.1)						(1.0)						—						(13.1)
Reduction for securities sold during the period			(.5)						—						—						—						—						(.5)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded			—						—						—						—						—						—
Write-offs			—						—						—						—						—						—
Recoveries of previously written-off amount			—						—						—						—						—						—
Allowance at June 30, 2020			$	10.0					$	.5					$	—					$	—					$	.3					$	10.8

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the six months ended June 30, 2020 (dollars in millions):

			Corporate securities						States and political subdivisions						Foreign governments						Non-agency residential mortgage-backed securities						Asset-backed securities						Total
Allowance at January 1, 2020			$	2.1					$	—					$	—					$	—					$	—					$	2.1
Additions for securities for which credit losses were not previously recorded			21.7						.6						.1						1.0						.3						23.7
Additions for purchased securities with deteriorated credit			—						—						—						—						—						—
Additions (reductions) for securities where an allowance was previously recorded			(13.0)						(.1)						(.1)						(1.0)						—						(14.2)
Reduction for securities sold during the period			(.8)						—						—						—						—						(.8)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded			—						—						—						—						—						—
Write-offs			—						—						—						—						—						—
Recoveries of previously written-off amount			—						—						—						—						—						—
Allowance at June 30, 2020			$	10.0					$	.5					$	—					$	—					$	.3					$	10.8

The following table summarizes changes in the allowance for credit losses related to corporate securities held by VIEs for the three months ended June 30, 2021 and 2020 (dollars in millions):

						2021						2020
Allowance at March 31						$	5.4					$	37.7
Additions for securities for which credit losses were not previously recorded						.1						5.8
Additions for purchased securities with deteriorated credit						—						—
Additions (reductions) for securities where an allowance was previously recorded						(1.0)						(14.7)
Reduction for securities sold during the period						(1.3)						(1.1)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded						—						—
Write-offs						—						—
Recoveries of previously written-off amount						—						—
Allowance at June 30						$	3.2					$	27.7

The following table summarizes changes in the allowance for credit losses related to investments held by VIEs for the six months ended June 30, 2021 (dollars in millions):

						Corporate securities
Allowance at December 31, 2020						$	15.1
Additions for securities for which credit losses were not previously recorded						.6
Additions for purchased securities with deteriorated credit						—
Additions (reductions) for securities where an allowance was previously recorded						(3.5)
Reduction for securities sold during the period						(9.0)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded						—
Write-offs						—
Recoveries of previously written-off amount						—
Allowance at June 30, 2021						$	3.2

The following table summarizes changes in the allowance for credit losses related to investments held by VIEs for the six months ended June 30, 2020 (dollars in millions):

						Corporate securities
Allowance at January 1, 2020						$	9.9
Additions for securities for which credit losses were not previously recorded						24.9
Additions for purchased securities with deteriorated credit						—
Additions (reductions) for securities where an allowance was previously recorded						(4.8)
Reduction for securities sold during the period						(2.3)
Reduction for securities for which the Company made the decision to sell where an allowance was previously recorded						—
Write-offs						—
Recoveries of previously written-off amount						—
Allowance at June 30, 2020						$	27.7

Summary of Carrying Value and Estimated Fair Value of Outstanding Commercial Mortgage Loans and Underlying Collateral

The following table provides the amortized cost by year of origination and estimated fair value of our outstanding commercial mortgage loans and the underlying collateral as of June 30, 2021 (dollars in millions):

																																																Estimated fair value
Loan-to-value ratio (a)						2021						2020						2019						2018						2017						Prior						Total amortized cost						Mortgage loans						Collateral
Less than 60%						$	40.3					$	28.5					$	87.7					$	113.5					$	65.5					$	620.5					$	956.0					$	1,017.6					$	2,883.2
60% to less than 70%						20.0						6.0						—						8.4						10.6						77.5						122.5						125.8						189.2
70% to less than 80%						—						12.6						12.1						—						—						42.2						66.9						68.5						92.5
80% to less than 90%						—						—						—						—						—						63.5						63.5						61.3						76.5
90% or greater						—						—						—						—						—						10.0						10.0						7.8						10.7
Total						$	60.3					$	47.1					$	99.8					$	121.9					$	76.1					$	813.7					$	1,218.9					$	1,281.0					$	3,252.1

________________

(a)Loan-to-value ratios are calculated as the ratio of: (i) the amortized cost of the commercial mortgage loans; to (ii) the estimated fair value of the underlying collateral.

Summary of Changes in the Allowance for Current Expected Credit Losses Related to Mortgage Loans

The following table summarizes changes in the allowance for credit losses related to mortgage loans for the three months ended June 30, 2021 and 2020 (dollars in millions):

						2021						2020
Allowance for credit losses at March 31						$	8.8					$	8.3
Current period provision for expected credit losses						(.5)						3.3
Initial allowance recognized for purchased financial assets with credit deterioration						—						—
Write-offs charged against the allowance						—						—
Recoveries of amounts previously written off						—						—
Allowance for credit losses at June 30						$	8.3					$	11.6

The following table summarizes changes in the allowance for credit losses related to mortgage loans for the six months ended June 30, 2021 (dollars in millions):

						Mortgage loans
Allowance for credit losses at December 31, 2020						$	11.8
Current period provision for expected credit losses						(3.5)
Initial allowance recognized for purchased financial assets with credit deterioration						—
Write-offs charged against the allowance						—
Recoveries of amounts previously written off						—
Allowance for credit losses at June 30, 2021						$	8.3

The following table summarizes changes in the allowance for credit losses related to mortgage loans for the six months ended June 30, 2020 (dollars in millions):

						Mortgage loans
Allowance for credit losses at January 1, 2020						$	6.7
Current period provision for expected credit losses						4.9
Initial allowance recognized for purchased financial assets with credit deterioration						—
Write-offs charged against the allowance						—
Recoveries of amounts previously written off						—
Allowance for credit losses at June 30, 2020						$	11.6

Schedule of Realized Gain (Loss) on Investments

The following table sets forth the net realized investment gains (losses) for the periods indicated (dollars in millions):

			Three months ended												Six months ended
			June 30,												June 30,
			2021						2020						2021						2020
Fixed maturity securities, available for sale:
Gross realized gains on sale			$	25.5					$	26.9					$	38.7					$	38.8
Gross realized losses on sale			(4.4)						(29.0)						(18.2)						(50.4)
Change in allowance for credit losses and other-than-temporary impairment losses			3.0						9.2						(.1)						(16.7)
Net realized investment gains (losses) from fixed maturities			24.1						7.1						20.4						(28.3)
Equity securities, including change in fair value (a)			1.6						5.5						(.2)						(10.2)
Change in allowance for credit losses and other-than-temporary impairment losses of other investments (b)			2.7						6.7						15.4						(22.8)
Other (c)			2.9						24.5						(7.1)						(10.4)
Net realized investment gains (losses)			$	31.3					$	43.8					$	28.5					$	(71.7)

_________________

(a)    Changes in the estimated fair value of equity securities (that are still held as of the end of the respective periods) were $0.4 million and $(7.6) million for the six months ended June 30, 2021 and 2020, respectively.

(b)    Changes in the allowance for credit losses includes $2.2 million and $11.9 million in the three and six months ended June 30, 2021, respectively, and $9.9 million and $(17.9) million in the three and six months ended June 30, 2020, respectively, related to investments held by variable interest entities ("VIEs").

(c)    Change in the estimated fair value of trading securities that we have elected the fair value option (that are still held as of the end of the respective periods) were $0.7 million and $(6.6) million in the six months ended June 30, 2021 and 2020, respectively.

X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447

+ Details

Name:	us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of allowance for credit loss on investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 30
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=124269663&loc=SL82922900-210455

+ Details

Name:	us-gaap_DebtSecuritiesAvailableForSaleAllowanceForCreditLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524

+ Details

Name:	us-gaap_FinancingReceivableCreditQualityIndicatorsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

+ References

No definition available.

+ Details

Name:	us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of realized gains and losses on investments reported in the statement of income.

+ References

No definition available.

+ Details

Name:	us-gaap_RealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of accumulated other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669686-108580

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

+ Details

Name:	us-gaap_ScheduleOfAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=123581744&loc=d3e27290-111563

+ Details

Name:	us-gaap_ScheduleOfUnrealizedLossOnInvestmentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration