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v3.23.3

BUSINESS SEGMENTS (Tables) | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Schedule of Operating Information by Segment | Operating information by segment is as follows (dollars in millions):
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Revenues: |  |  |  |  |  |  |
Annuity: |  |  |  |  |  |  |
Insurance policy income | $ | 7.2 |  |  | $ | 6.3 |  |  | $ | 20.4 |  |  | $ | 17.1 |
Net investment income | 131.0 |  |  | 121.1 |  |  | 384.1 |  |  | 356.4 |
Total annuity revenues | 138.2 |  |  | 127.4 |  |  | 404.5 |  |  | 373.5 |
Health: |  |  |  |  |  |  |
Insurance policy income | 397.8 |  |  | 403.5 |  |  | 1,196.3 |  |  | 1,213.7 |
Net investment income | 74.2 |  |  | 73.3 |  |  | 222.5 |  |  | 219.6 |
Total health revenues | 472.0 |  |  | 476.8 |  |  | 1,418.8 |  |  | 1,433.3 |
Life: |  |  |  |  |  |  |
Insurance policy income | 221.0 |  |  | 213.4 |  |  | 663.1 |  |  | 643.0 |
Net investment income | 36.3 |  |  | 35.4 |  |  | 108.7 |  |  | 106.1 |
Total life revenues | 257.3 |  |  | 248.8 |  |  | 771.8 |  |  | 749.1 |
Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances) | (54.6) |  |  | (34.9) |  |  | 26.3 |  |  | (199.2) |
Investment income not allocated to product lines | 86.2 |  |  | 59.6 |  |  | 234.3 |  |  | 187.4 |
Fee revenue and other income: |  |  |  |  |  |  |
Fee income | 27.9 |  |  | 30.6 |  |  | 108.6 |  |  | 102.0 |
Amounts netted in expenses not allocated to product lines | 32.1 |  |  | 1.8 |  |  | 35.2 |  |  | 28.9 |
Total segment revenues | $ | 959.1 |  |  | $ | 910.1 |  |  | $ | 2,999.5 |  |  | $ | 2,675.0 |
(continued on next page) (continued from previous page)
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Expenses: |  |  |  |  |  |  |
Annuity: |  |  |  |  |  |  |
Insurance policy benefits | $ | 9.8 |  |  | $ | 6.5 |  |  | $ | 29.1 |  |  | $ | 22.8 |
Interest credited | 53.4 |  |  | 44.8 |  |  | 152.1 |  |  | 128.7 |
Amortization and non-deferred commissions | 18.0 |  |  | 16.0 |  |  | 51.9 |  |  | 45.9 |
Total annuity expenses | 81.2 |  |  | 67.3 |  |  | 233.1 |  |  | 197.4 |
Health: |  |  |  |  |  |  |
Insurance policy benefits | 308.5 |  |  | 310.8 |  |  | 949.3 |  |  | 943.8 |
Amortization and non-deferred commissions | 40.3 |  |  | 42.7 |  |  | 121.6 |  |  | 125.5 |
Total health expenses | 348.8 |  |  | 353.5 |  |  | 1,070.9 |  |  | 1,069.3 |
Life: |  |  |  |  |  |  |
Insurance policy benefits | 140.7 |  |  | 138.7 |  |  | 430.7 |  |  | 419.5 |
Interest credited | 12.1 |  |  | 12.6 |  |  | 36.4 |  |  | 36.3 |
Amortization, non-deferred commissions and advertising expense | 44.7 |  |  | 41.8 |  |  | 139.6 |  |  | 131.4 |
Total life expenses | 197.5 |  |  | 193.1 |  |  | 606.7 |  |  | 587.2 |
Allocated expenses | 153.2 |  |  | 150.5 |  |  | 460.2 |  |  | 447.5 |
Expenses not allocated to product lines | 24.6 |  |  | 17.9 |  |  | 67.1 |  |  | 56.9 |
Market value changes of options credited to fixed indexed annuity and life policyholders | (54.6) |  |  | (34.9) |  |  | 26.3 |  |  | (199.2) |
Amounts netted in investment income not allocated to product lines: |  |  |  |  |  |  |
Interest expense | 45.1 |  |  | 25.9 |  |  | 122.3 |  |  | 64.3 |
Interest credited | 7.2 |  |  | 7.2 |  |  | 21.6 |  |  | 21.3 |
Impact of annual option forfeitures related to fixed indexed annuity surrenders | (2.5) |  |  | 1.1 |  |  | (3.9) |  |  | — |
Amortization | .4 |  |  | .3 |  |  | 1.2 |  |  | 1.1 |
Other expenses | (2.4) |  |  | (2.0) |  |  | 11.2 |  |  | (18.0) |
Expenses netted in fee revenue: |  |  |  |  |  |  |
Commissions and other operating expenses | 30.8 |  |  | 29.2 |  |  | 95.4 |  |  | 87.5 |
Total segment expenses | 829.3 |  |  | 809.1 |  |  | 2,712.1 |  |  | 2,315.3 |
Pre-tax measure of profitability: |  |  |  |  |  |  |
Annuity margin | 57.0 |  |  | 60.1 |  |  | 171.4 |  |  | 176.1 |
Health margin | 123.2 |  |  | 123.3 |  |  | 347.9 |  |  | 364.0 |
Life margin | 59.8 |  |  | 55.7 |  |  | 165.1 |  |  | 161.9 |
Total insurance product margin | 240.0 |  |  | 239.1 |  |  | 684.4 |  |  | 702.0 |
Allocated expenses | (153.2) |  |  | (150.5) |  |  | (460.2) |  |  | (447.5) |
Income from insurance products | 86.8 |  |  | 88.6 |  |  | 224.2 |  |  | 254.5 |
Fee income | (2.9) |  |  | 1.4 |  |  | 13.2 |  |  | 14.5 |
Investment income not allocated to product lines | 38.4 |  |  | 27.1 |  |  | 81.9 |  |  | 118.7 |
Expenses not allocated to product lines | 7.5 |  |  | (16.1) |  |  | (31.9) |  |  | (28.0) |
Operating earnings before taxes | 129.8 |  |  | 101.0 |  |  | 287.4 |  |  | 359.7 |
Income tax expense on operating income | 28.5 |  |  | 23.1 |  |  | 65.2 |  |  | 82.2 |
Net operating income | $ | 101.3 |  |  | $ | 77.9 |  |  | $ | 222.2 |  |  | $ | 277.5 |
Schedule of Reconciliation of Segment Revenues and Expenses to Consolidated Revenues and Expenses and Net Income | A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions):
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Total segment revenues | $ | 959.1 |  |  | $ | 910.1 |  |  | $ | 2,999.5 |  |  | $ | 2,675.0 |
Total investment losses | (29.3) |  |  | (17.7) |  |  | (79.2) |  |  | (99.2) |
Revenues related to earnings attributable to VIEs | 17.7 |  |  | 12.9 |  |  | 56.0 |  |  | 27.4 |
Consolidated revenues | 947.5 |  |  | 905.3 |  |  | 2,976.3 |  |  | 2,603.2 |
Total segment expenses | 829.3 |  |  | 809.1 |  |  | 2,712.1 |  |  | 2,315.3 |
Insurance policy benefits - changes in fair value of embedded derivative liabilities and market risk benefits | (109.4) |  |  | (130.6) |  |  | (94.7) |  |  | (456.6) |
Expenses attributable to VIEs | 17.8 |  |  | 11.9 |  |  | 54.0 |  |  | 26.2 |
Fair value changes related to agent deferred compensation plan | (6.8) |  |  | (12.0) |  |  | (6.8) |  |  | (48.7) |
Other expenses | 1.0 |  |  | (1.0) |  |  | 1.0 |  |  | (1.0) |
Consolidated expenses | 731.9 |  |  | 677.4 |  |  | 2,665.6 |  |  | 1,835.2 |
Income before tax | 215.6 |  |  | 227.9 |  |  | 310.7 |  |  | 768.0 |
Income tax expense on period income | 48.3 |  |  | 52.0 |  |  | 70.5 |  |  | 175.4 |
Net income | 167.3 |  |  | $ | 175.9 |  |  | $ | 240.2 |  |  | $ | 592.6 |

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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