
	January 1, 2021
	Amounts prior
	to adoption of		Effect of
	ASU 2018-12		adoption			As recast
Present value of future profits	$	249.4	$	10.2		$	259.6
Deferred acquisition costs	1,027.8		458.0			1,485.8
Reinsurance receivables	4,584.3		144.1			4,728.4
Market risk benefit asset	—		2.5			2.5
Income tax assets, net	199.4		607.0			806.4
Total assets	35,339.9		1,221.8			36,561.7

Policyholder account balances	12,540.6		(172.9)			12,367.7
Future policy benefits	11,744.2		3,960.7			15,704.9
Market risk benefit liability	—		114.8			114.8
Liability for policy and contract claims	561.8		(470.1)			91.7
Total liabilities	29,855.7		3,432.5			33,288.2

Retained earnings	752.3		(130.9)		(a)	621.4
Accumulated other comprehensive income (loss)	2,186.1		(2,079.8)			106.3
Total shareholders' equity	5,484.2		(2,210.7)			3,273.5

(a) The impact to retained earnings was primarily related to certain long-term care product cohorts where the present value of expected benefits exceeded the reserve at the Transition Date plus the present value of future gross premiums. As a result, the net premium ratio was capped at 100 percent with an immediate increase in the reserve for such cohorts.

The following summarizes the impact of adoption on previously reported balances as of December 31, 2022 and as of and for the three and nine months ended September 30, 2022 (dollars in millions, except per share data):


	December 31, 2022
	As previously		Effect of
	reported		adoption		As recast
Present value of future profits	$	212.2	$	(8.5)	$	203.7
Deferred acquisition costs	1,913.4		(142.5)		1,770.9
Reinsurance receivables	4,241.7		(18.3)		4,223.4
Market risk benefit asset	—		65.3		65.3
Income tax assets, net	1,165.5		(102.1)		1,063.4
Total assets	33,339.2		(206.1)		33,133.1

Policyholder account balances	14,858.3		375.9		15,234.2
Future policy benefits	11,809.1		(568.9)		11,240.2
Market risk benefit liability	—		11.3		11.3
Liability for policy and contract claims	456.5		(392.4)		64.1
Total liabilities	31,938.4		(574.1)		31,364.3

Retained earnings	1,459.0		232.2		1,691.2
Accumulated other comprehensive income (loss)	(2,093.1)		135.8		(1,957.3)
Total shareholders' equity	1,400.8		368.0		1,768.8


	Three months ended
	September 30, 2022
	As previously		Effect of
	reported		adoption		As recast
Insurance policy benefits	$	412.2	$	(16.1)	$	396.1
Liability for future policy benefits remeasurement loss	—		(5.0)		(5.0)
Change in fair value of market risk benefits	—		(34.9)		(34.9)
Amortization	87.5		(34.0)		53.5
Other operating costs and expenses	230.8		(.7)		230.1
Total benefits and expenses	768.1		(90.7)		677.4
Income before income taxes	137.2		90.7		227.9
Income tax expense	32.2		19.8		52.0
Net income	105.0		70.9		175.9
Earnings per common share - basic	$	0.92	$	0.62	$	1.54
Earnings per common share - diluted	0.91		0.61		1.52


	Nine months ended
	September 30, 2022
	As previously		Effect of
	reported		adoption		As recast
Insurance policy benefits	$	1,099.1	$	(66.9)	$	1,032.2
Liability for future policy benefits remeasurement loss	—		2.3		2.3
Change in fair value of market risk benefits	—		(117.9)		(117.9)
Amortization	279.5		(121.0)		158.5
Other operating costs and expenses	673.5		(2.6)		670.9
Total benefits and expenses	2,141.3		(306.1)		1,835.2
Income before income taxes	461.9		306.1		768.0
Income tax expense	108.5		66.9		175.4
Net income	353.4		239.2		592.6
Earnings per common share - basic	$	3.04	$	2.06	$	5.10
Earnings per common share - diluted	2.99		2.03		5.02


	As of September 30, 2022
	As previously		Effect of
	reported		adoption		As recast
Retained earnings	$	1,431.9	$	237.6	1,669.5
Accumulated other comprehensive loss	(2,165.7)		327.9		(1,837.8)
Total shareholders' equity	1,297.9		565.5		1,863.4

The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for insurance-related balances, accumulated other comprehensive income and retained earnings (dollars in millions):


	January 1, 2021
	Asset accounts
	Present value of future profits		Deferred acquisition costs		Reinsurance receivables		Market risk benefit asset		Income tax assets, net
Amounts prior to adoption of ASU 2018-12	$	249.4	$	1,027.8	$	4,584.3	$	—	$	199.4
Unwinding amounts related to unrealized gains (losses)	10.2		458.0		—		—		—
Changes in measurement of assets	—		—		(81.6)		—		—
Change in discount rates	—		—		225.7		—		—
Changes in market benefit reserve basis	—		—		—		2.5		—
Tax impacts of changes recognized in accumulated other comprehensive income	—		—		—		—		570.3
Tax impacts of changes recognized in retained earnings	—		—		—		—		36.7
Amounts, as recast	$	259.6	$	1,485.8	$	4,728.4	$	2.5	$	806.4


	January 1, 2021
	Liability accounts
	Policyholder account balances		Future policy benefits		Market risk benefit liability		Liability for policy and contract claims
Amounts prior to adoption of ASU 2018-12	$	12,540.6	$	11,744.2	$	—	$	561.8
Unwinding amounts related to unrealized gains (losses)	—		(197.5)		—		—
Changes in remeasurement of future policy benefits	—		31.1		—		—
Changes in classification of liabilities (1)	(172.9)		643.0		—		(470.1)
Reclass to market risk benefit liability	—		(66.6)		66.6		—
Changes in market risk benefit reserve basis	—		—		48.2		—
Change in discount rates	—		3,550.7		—		—
Amounts, as recast	$	12,367.7	$	15,704.9	$	114.8	$	91.7

(1) Amount includes certain reclassifications to conform with the revised presentation of ASU 2018-12, such as reclassifying claims and benefits payable on long-duration health contracts to the liability for future policy benefits.