XML 42 R31.htm IDEA: XBRL DOCUMENT v3.23.3

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss), included in shareholders' equity as of September 30, 2023 and December 31, 2022, is comprised of the following (dollars in millions):

			September 30, 2023						December 31, 2022
Net unrealized losses on investments having no allowance for credit losses			$	(1,506.2)					$	(1,247.0)
Unrealized losses on investments with an allowance for credit losses			(2,038.5)						(1,780.7)
Change in discount rates for liability for future policy benefits			1,021.6						500.7
Change in instrument-specific credit risk for market risk benefits			7.8						12.2
Deferred income tax assets			558.6						557.5
Accumulated other comprehensive loss			$	(1,956.7)					$	(1,957.3)

Schedule of Fixed Maturities for Available for Sale Securities

At September 30, 2023, 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			$	13,312.1					$	10.7					$	(2,297.1)					$	(66.8)					$	10,958.9
United States Treasury securities and obligations of United States government corporations and agencies			194.2						—						(28.8)						—						165.4
States and political subdivisions			2,848.5						7.0						(547.8)						(1.7)						2,306.0
Foreign governments			93.3						—						(16.6)						(.7)						76.0
Asset-backed securities			1,500.2						.2						(141.0)						(.2)						1,359.2
Agency residential mortgage-backed securities			627.9						.6						(12.6)						—						615.9
Non-agency residential mortgage-backed securities			1,695.8						33.7						(204.3)						—						1,525.2
Collateralized loan obligations			1,077.7						1.9						(20.1)						—						1,059.5
Commercial mortgage-backed securities			2,549.8						.6						(311.3)						—						2,239.1
Total fixed maturities, available for sale			$	23,899.5					$	54.7					$	(3,579.6)					$	(69.4)					$	20,305.2

At December 31, 2022, 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			$	13,649.1					$	29.9					$	(1,911.9)					$	(54.4)					$	11,712.7
United States Treasury securities and obligations of United States government corporations and agencies			171.7						—						(13.0)						—						158.7
States and political subdivisions			2,846.9						19.3						(476.8)						(.9)						2,388.5
Foreign governments			86.3						.1						(11.3)						(.4)						74.7
Asset-backed securities			1,435.7						1.0						(149.4)						(.3)						1,287.0
Agency residential mortgage-backed securities			174.3						1.4						(.7)						—						175.0
Non-agency residential mortgage-backed securities			1,700.4						40.0						(191.9)						—						1,548.5
Collateralized loan obligations			825.2						.3						(39.6)						—						785.9
Commercial mortgage-backed securities			2,494.6						.1						(272.3)						—						2,222.4
Total fixed maturities, available for sale			$	23,384.2					$	92.1					$	(3,066.9)					$	(56.0)					$	20,353.4

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 September 30, 2023, 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			$	171.9					$	161.9
Due after one year through five years			2,217.5						2,069.5
Due after five years through ten years			1,729.0						1,551.7
Due after ten years			12,329.7						9,723.2
Subtotal			16,448.1						13,506.3
Structured securities			7,451.4						6,798.9
Total fixed maturities, available for sale			$	23,899.5					$	20,305.2

The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at December 31, 2022, by contractual maturity.

			Amortized cost						Estimated fair value
			(Dollars in millions)
Due in one year or less			$	112.0					$	110.8
Due after one year through five years			1,913.7						1,790.2
Due after five years through ten years			2,098.9						1,910.4
Due after ten years			12,629.4						10,523.2
Subtotal			16,754.0						14,334.6
Structured securities			6,630.2						6,018.8
Total fixed maturities, available for sale			$	23,384.2					$	20,353.4

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 September 30, 2023 (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						$	591.1					$	(42.3)					$	2,938.4					$	(631.8)					$	3,529.5					$	(674.1)
United States Treasury securities and obligations of United States government corporations and agencies						131.9						(24.7)						33.5						(4.1)						165.4						(28.8)
States and political subdivisions						181.9						(12.9)						436.5						(145.7)						618.4						(158.6)
Foreign governments						6.5						(.5)						23.3						(2.8)						29.8						(3.3)
Asset-backed securities						212.8						(4.1)						1,050.6						(133.6)						1,263.4						(137.7)
Agency residential mortgage-backed securities						505.8						(12.3)						7.1						(.3)						512.9						(12.6)
Non-agency residential mortgage-backed securities						245.1						(6.6)						1,014.5						(197.7)						1,259.6						(204.3)
Collateralized loan obligations						114.4						(.4)						642.6						(19.7)						757.0						(20.1)
Commercial mortgage-backed securities						223.3						(4.3)						1,927.6						(307.0)						2,150.9						(311.3)
Total fixed maturities, available for sale						$	2,212.8					$	(108.1)					$	8,074.1					$	(1,442.7)					$	10,286.9					$	(1,550.8)

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, 2022 (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						$	2,830.8					$	(329.4)					$	370.4					$	(129.3)					$	3,201.2					$	(458.7)
United States Treasury securities and obligations of United States government corporations and agencies						134.4						(9.6)						21.9						(3.4)						156.3						(13.0)
States and political subdivisions						667.0						(124.8)						132.1						(58.5)						799.1						(183.3)
Foreign governments						35.0						(3.5)						2.1						(.3)						37.1						(3.8)
Asset-backed securities						914.0						(90.1)						258.1						(53.4)						1,172.1						(143.5)
Agency residential mortgage-backed securities						59.7						(.7)						—						—						59.7						(.7)
Non-agency residential mortgage-backed securities						861.6						(89.7)						335.4						(102.2)						1,197.0						(191.9)
Collateralized loan obligations						553.0						(27.4)						184.2						(12.2)						737.2						(39.6)
Commercial mortgage-backed securities						1,581.4						(160.0)						593.3						(112.3)						2,174.7						(272.3)
Total fixed maturities, available for sale						$	7,636.9					$	(835.2)					$	1,897.5					$	(471.6)					$	9,534.4					$	(1,306.8)

Schedule 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 September 30, 2023 (dollars in millions):

			Corporate securities						States and political subdivisions						Foreign governments												Asset-backed securities						Total
Allowance at June 30, 2023			$	64.4					$	1.0					$	.5											$	.2					$	66.1
Additions for securities for which credit losses were not previously recorded			1.2						—						—												.1						1.3
Additions for purchased securities with deteriorated credit			—						—						—												—						—
Additions (reductions) for securities where an allowance was previously recorded			1.5						.7						.2												(.1)						2.3
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 September 30, 2023			$	66.8					$	1.7					$	.7											$	.2					$	69.4

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the nine months ended September 30, 2023 (dollars in millions):

			Corporate securities						States and political subdivisions						Foreign governments												Asset-backed securities						Total
Allowance at December 31, 2022			$	54.4					$	.9					$	.4											$	.3					$	56.0
Additions for securities for which credit losses were not previously recorded			5.9						.2						.1												—						6.2
Additions for purchased securities with deteriorated credit			—						—						—												—						—
Additions (reductions) for securities where an allowance was previously recorded			9.2						.6						.2												(.1)						9.9
Reduction for securities sold during the period			(2.7)						—						—												—						(2.7)
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 September 30, 2023			$	66.8					$	1.7					$	.7											$	.2					$	69.4

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three months ended September 30, 2022 (dollars in millions):

			Corporate securities						States and political subdivisions						Foreign governments												Asset-backed securities						Total
Allowance at June 30, 2022			$	52.2					$	1.1					$	.7											$	.2					$	54.2
Additions for securities for which credit losses were not previously recorded			7.2						.2						.1												.1						7.6
Additions for purchased securities with deteriorated credit			—						—						—												—						—
Additions (reductions) for securities where an allowance was previously recorded			(6.9)						.5						—												—						(6.4)
Reduction for securities sold during the period			(3.3)						(.1)						—												—						(3.4)
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 September 30, 2022			$	49.2					$	1.7					$	.8											$	.3					$	52.0

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the nine months ended September 30, 2022 (dollars in millions):

			Corporate securities						States and political subdivisions						Foreign governments												Asset-backed securities						Total
Allowance at December 31, 2021			$	7.4					$	—					$	.2											$	—					$	7.6
Additions for securities for which credit losses were not previously recorded			39.8						.7						.5												.2						41.2
Additions for purchased securities with deteriorated credit			—						—						—												—						—
Additions (reductions) for securities where an allowance was previously recorded			11.8						1.1						.1												.1						13.1
Reduction for securities sold during the period			(9.8)						(.1)						—												—						(9.9)
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 September 30, 2022			$	49.2					$	1.7					$	.8											$	.3					$	52.0

The following table summarizes changes in the allowance for credit losses related to corporate securities held by VIEs for the three months ended September 30, 2023 and 2022 (dollars in millions):

						Three months ended
						September 30,
						2023						2022
Allowance at the beginning of the period						$	4.5					$	12.2
Additions for securities for which credit losses were not previously recorded						.1						.9
Additions for purchased securities with deteriorated credit						—						—
Additions (reductions) for securities where an allowance was previously recorded						(.6)						(5.7)
Reduction for securities sold during the period						(1.1)						(.9)
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 the end of the period						$	2.9					$	6.5

The following table summarizes changes in the allowance for credit losses related to corporate securities held by VIEs for the nine months ended September 30, 2023 and 2022 (dollars in millions):

						Nine months ended
						September 30,
						2023						2022
Allowance at the beginning of the period						$	5.5					$	3.7
Additions for securities for which credit losses were not previously recorded						.7						7.2
Additions for purchased securities with deteriorated credit						—						—
Additions (reductions) for securities where an allowance was previously recorded						(.5)						(2.5)
Reduction for securities sold during the period						(2.8)						(1.9)
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 the end of the period						$	2.9					$	6.5

Schedule 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 September 30, 2023 (dollars in millions):

																																																Estimated fair value
Loan-to-value ratio (a)						2023						2022						2021						2020						2019						Prior						Total amortized cost						Mortgage loans						Collateral
Less than 60%						$	163.6					$	147.3					$	115.1					$	36.7					$	73.8					$	482.3					$	1,018.8					$	880.8					$	3,789.7
60% to less than 70%						47.1						87.3						11.1						5.6						—						36.8						187.9						165.5						287.0
70% to less than 80%						19.5						77.8						24.8						—						—						40.1						162.2						138.7						214.1
80% to less than 90%						—						—						—						—						—						17.4						17.4						15.8						20.8
90% or greater						—						—						—						—						—						24.3						24.3						17.0						25.1
Total						$	230.2					$	312.4					$	151.0					$	42.3					$	73.8					$	600.9					$	1,410.6					$	1,217.8					$	4,336.7

________________

(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.

Schedule 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 September 30, 2023 and 2022 (dollars in millions):

						Three months ended
						September 30,
						2023						2022
Allowance at the beginning of the period						$	10.3					$	4.9
Current period provision for expected credit losses						.6						.4
Initial allowance recognized for purchased financial assets with credit deterioration						—						—
Write-offs charged against the allowance						—						—
Recoveries of amounts previously written off						—						—
Allowance at the end of the period						$	10.9					$	5.3

The following table summarizes changes in the allowance for credit losses related to mortgage loans for the nine months ended September 30, 2023 and 2022 (dollars in millions):

						Nine months ended
						September 30,
						2023						2022
Allowance at the beginning of the period						$	8.0					$	5.6
Current period provision for expected credit losses						2.9						(.3)
Initial allowance recognized for purchased financial assets with credit deterioration						—						—
Write-offs charged against the allowance						—						—
Recoveries of amounts previously written off						—						—
Allowance at the end of the period						$	10.9					$	5.3

Schedule of Realized Gain (Loss) on Investments

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

			Three months ended												Nine months ended
			September 30,												September 30,
			2023						2022						2023						2022
Realized investment gains (losses):
Gross realized gains on sales of fixed maturities, available for sale			$	1.3					$	18.1					$	11.4					$	96.4
Gross realized losses on sales of fixed maturities, available for sale			(9.8)						(24.4)						(45.8)						(81.3)
Equity securities, net			—						—						(.6)						(8.3)
Other, net			(13.1)						(1.9)						(23.0)						(3.2)
Total realized investment gains (losses)			(21.6)						(8.2)						(58.0)						3.6
Change in allowance for credit losses (a)			(2.3)						7.5						(13.7)						(46.9)
Change in fair value of equity securities (b)			(.9)						(.7)						(.5)						(2.4)
Other changes in fair value (c)			(4.5)						(16.3)						(7.0)						(53.5)
Other investment losses			(7.7)						(9.5)						(21.2)						(102.8)
Total investment losses			$	(29.3)					$	(17.7)					$	(79.2)					$	(99.2)

_________________

(a)    Changes in the allowance for credit losses includes $1.6 million and $5.7 million in the three months ended September 30, 2023 and 2022, respectively, and $2.6 million and $(2.8) million in the nine months ended September 30, 2023 and 2022, respectively, related to investments held by variable interest entities ("VIEs").

(b)    Changes in the estimated fair value of equity securities (that are still held as of the end of the respective periods) were $(0.7) million and $(6.9) million for the nine months ended September 30, 2023 and 2022, respectively.

(c)    Changes 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 $(8.0) million and $(36.6) million in the nine months ended September 30, 2023 and 2022, respectively.

X

- Definition

Debt Securities, Available-for-Sale Securities, Unrealized Losses and Fair Value

+ References

No definition available.

+ Details

Name:	cno_DebtSecuritiesAvailableForSaleSecuritiesUnrealizedLossesAndFairValueTableTextBlock
Namespace Prefix:	cno_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-13

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-11B

+ 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
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479106/326-30-50-9

+ 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
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-5

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 29
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-29

+ 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://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-14A

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 830
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481674/830-30-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 830
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 20
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481694/830-30-45-20

+ 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