XML 44 R33.htm IDEA: XBRL DOCUMENT
v3.24.3

ACCOUNTING FOR DERIVATIVES (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Fair Value by Balance Sheet Location | Our freestanding and embedded derivatives, which are not designated as hedging instruments, are held at fair value and are summarized as follows (dollars in millions):
|  | Fair value
|  | September 30, 2024 |  | December 31, 2023
Assets: |  |  |  |
Other invested assets: |  |  |  |
Fixed indexed call options |  | $ | 373.6 |  |  | $ | 239.2 |
Reinsurance receivables |  | (15.6) |  |  | (17.5) |
Total assets |  | $ | 358.0 |  |  | $ | 221.7 |
Liabilities: |  |  |  |
Embedded derivatives related to fixed indexed annuities at fair value: |  |  |  |
Policyholder account balances |  | $ | 1,655.1 |  |  | $ | 1,651.6 |
Future policy benefits |  | (103.2) |  |  | (274.9) |
Total liabilities |  | $ | 1,551.9 |  |  | $ | 1,376.7 |
Schedule Pre-Tax Gains (Losses) Recognized in Net Income for Derivative Instruments | The following table provides the pre-tax impact recognized in net income for derivative instruments, which are not designated as hedges for the periods indicated (dollars in millions):
|  | Three months ended |  | Nine months ended
|  | September 30, |  | September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Net investment income (loss) from policyholder and other special-purpose portfolios: |  |  |  |  |  |  |  |
Fixed indexed call options |  | $ | 67.2 |  |  | $ | (55.0) |  |  | $ | 246.3 |  |  | $ | 24.9 |
Total investment gains (losses): |  |  |  |  |  |  |  |
Embedded derivative related to modified coinsurance agreement |  | 1.7 |  |  | (2.2) |  |  | 1.9 |  |  | (2.5) |
Total revenues from derivative instruments, not designated as hedges |  | 68.9 |  |  | (57.2) |  |  | 248.2 |  |  | 22.4 |
Insurance policy benefits: |  |  |  |  |  |  |  |
Embedded derivatives related to fixed indexed annuities |  | 153.2 |  |  | (125.8) |  |  | 231.4 |  |  | (37.7) |
Net pre-tax impact |  | $ | (84.3) |  |  | $ | 68.6 |  |  | $ | 16.8 |  |  | $ | 60.1 |
Schedule of Derivatives with Master Netting Arrangements | The following table summarizes information related to derivatives with master netting arrangements or collateral as of September 30, 2024 and December 31, 2023 (dollars in millions):
|  |  |  |  |  |  |  |  | Gross amounts not offset in the balance sheet |  |
|  |  | Gross amounts recognized |  | Gross amounts offset in the balance sheet |  | Net amounts of assets presented in the balance sheet |  | Non-cash collateral |  | Cash collateral received |  | Net amount
September 30, 2024: |  |
| Fixed indexed call options |  | $ | 373.6 |  |  | $ | — |  |  | $ | 373.6 |  |  | $ | 97.9 |  |  | $ | — |  |  | $ | 275.7 |
December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |
| Fixed indexed call options |  | 239.2 |  |  | — |  |  | 239.2 |  |  | 37.0 |  |  | — |  |  | 202.2 |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-11 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify as hedging instruments) of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4A + Details
Name: | us-gaap_ScheduleOfDerivativesInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration