We have concluded that we are the primary beneficiary with respect to certain VIEs, which are consolidated in our financial statements. In consolidating the VIEs, we consistently use the financial information most recently distributed to investors in the VIE.

All of the VIEs are collateralized loan trusts that were established to issue securities to finance the purchase of commercial bank loans and other permitted investments. The assets held by the trusts are legally isolated and not available to the Company. The liabilities of the VIEs are expected to be satisfied from the cash flows generated by the underlying loans held by the trusts, not from the assets of the Company. The scheduled repayment of the remaining principal balance of the borrowings related to the VIEs are estimated as follows: $94.1 million in 2025; $40.2 million in 2026; $33.3 million in 2027; $55.0 million in 2028; and $276.0 million in 2029 and thereafter. The Company has no financial obligation to the VIEs beyond its investment in each VIE.

Certain of our subsidiaries are noteholders of the VIEs. Another subsidiary of the Company is the investment manager for the VIEs. As such, it has the power to direct the most significant activities of the VIEs which materially impacts the economic performance of the VIEs.


	December 31, 2024
	VIEs		Eliminations		Net effect on consolidated balance sheet
Assets:
Investments held by variable interest entities	$	432.3	$	—	$	432.3
Other invested assets, affiliated	—		(130.0)		(130.0)
Cash and cash equivalents held by variable interest entities	341.0		—		341.0
Accrued investment income	0.9		—		0.9
Income tax assets, net	15.0		—		15.0
Other assets	5.5		(0.2)		5.3
Total assets	$	794.7	$	(130.2)	$	664.5
Liabilities:
Other liabilities	$	224.0	$	(0.6)	$	223.4
Borrowings related to variable interest entities	497.6		—		497.6
Notes payable of VIEs held by subsidiaries	131.2		(131.2)		—
Total liabilities	$	852.8	$	(131.8)	$	721.0


	December 31, 2023
	VIEs		Eliminations		Net effect on consolidated balance sheet
Assets:
Investments held by variable interest entities	$	768.6	$	—	$	768.6
Other invested assets, affiliated	—		(113.8)		(113.8)
Cash and cash equivalents held by variable interest entities	114.5		—		114.5
Accrued investment income	2.7		—		2.7
Income tax assets, net	13.0		—		13.0
Other assets	—		(0.7)		(0.7)
Total assets	$	898.8	$	(114.5)	$	784.3
Liabilities:
Other liabilities	$	14.6	$	(2.2)	$	12.4
Borrowings related to variable interest entities	820.8		—		820.8
Notes payable of VIEs held by subsidiaries	126.1		(126.1)		—
Total liabilities	$	961.5	$	(128.3)	$	833.2

The following table provides supplemental information about the revenues and expenses of the VIEs which have been consolidated in accordance with authoritative guidance, after giving effect to the elimination of our investment in the VIEs and investment management fees earned by a subsidiary of the Company (dollars in millions):




	2024		2023		2022
Revenues:
Net investment income – policyholder and other special-purpose portfolios	$	40.9	$	85.2	$	60.1
Fee revenue and other income	2.6		4.4		5.3
Total revenues	43.5		89.6		65.4
Expenses:
Interest expense	34.7		68.7		41.0
Other operating expenses	2.2		1.8		2.0
Total expenses	36.9		70.5		43.0
Income before net investment losses and income taxes	6.6		19.1		22.4
Net investment losses	(16.9)		(4.4)		(8.1)

Income before income taxes	$	(10.3)	$	14.7	$	14.3

The investment portfolios held by the VIEs are primarily comprised of commercial bank loans to corporate obligors. At December 31, 2024, the amortized cost of the below-investment grade investments held by the VIEs was $423.5 million, or 97 percent of the VIEs' investment portfolio. At December 31, 2024, such loans had an amortized cost of $437.0 million; gross unrealized gains of $1.2 million; gross unrealized losses of $4.7 million; an allowance for credit losses of $1.3 million; and an estimated fair value of $432.3 million. The estimated fair value of the below-investment grade portfolio was $418.7 million, or 99 percent of the amortized cost.

The following table summarizes changes in the allowance for credit losses related to investments held by VIEs for each of the three years ended December 31, 2024 (dollars in millions):


	Corporate securities
Allowance at December 31, 2021	$	3.7
Additions for securities for which credit losses were not previously recorded	7.8
Additions (reductions) for securities where an allowance was previously recorded	(3.0)
Reduction for securities disposed during the period	(3.0)
Allowance at December 31, 2022	5.5
Additions for securities for which credit losses were not previously recorded	0.8
Additions (reductions) for securities where an allowance was previously recorded	(0.3)
Reduction for securities disposed during the period	(2.9)
Allowance at December 31, 2023	3.1
Additions for securities for which credit losses were not previously recorded	0.8
Additions (reductions) for securities where an allowance was previously recorded	1.9
Reduction for securities disposed during the period	(4.5)
Allowance at December 31, 2024	$	1.3

The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at December 31, 2024, 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.


	Amortized cost		Estimated fair value
	(Dollars in millions)
Due in one year or less	$	3.1	$	3.0
Due after one year through five years	315.3		311.0
Due after five years through ten years	118.6		118.3
Total	$	437.0	$	432.3

The following table sets forth the amortized cost and estimated fair value of those investments held by the VIEs with unrealized losses at December 31, 2024, 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.


	Amortized cost		Estimated fair value
	(Dollars in millions)
Due in one year or less	$	3.1	$	2.9
Due after one year through five years	174.3		169.0
Due after five years through ten years	93.0		92.5
Total	$	270.4	$	264.4

The following summarizes the investments sold at a loss during 2024 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions):


		At date of sale
	Number of issuers	Amortized cost		Fair value
Less than 6 months prior to sale	12	$	14.2	$	9.8
Greater than or equal to 6 months and less than 12 months prior to sale	6	13.0		7.6
Greater than 12 months prior to sale	7	14.0		7.8
		$	41.2	$	25.2

As of December 31, 2024, there were no investments held by the VIEs rated below-investment grade not deemed to have credit losses which have been continuously in an unrealized loss position exceeding 20 percent of the cost basis.

During 2024, the VIEs recognized net investment losses of $16.9 million which were comprised of: (i) $18.7 million of net losses from the sales of fixed maturities; and (ii) a $1.8 million decrease in the allowance for credit losses. Such net investment losses included gross realized losses of $23.8 million from the sale of $199.6 million of investments. Sales activity in 2024 was partially driven by the liquidation of two collateralized loan trusts.

During 2023, the VIEs recognized net investment losses of $4.4 million which were comprised of: (i) $6.8 million of net losses from the sales of fixed maturities; and (ii) a $2.4 million decrease in the allowance for credit losses. Such net investment losses included gross realized losses of $6.9 million from the sale of $18.5 million of investments.

During 2022, the VIEs recognized net investment losses of $8.1 million which were comprised of: (i) $6.3 million of net losses from the sales of fixed maturities; and (ii) a $1.8 million increase in the allowance for credit losses. Such net investment losses included gross realized losses of $6.3 million from the sale of $69.2 million of investments.

At December 31, 2024, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $183.2 million and gross unrealized losses of $0.9 million that had been in an unrealized loss position for less than twelve months; and (ii) investments (for which an allowance for credit losses has not been recorded) with a fair value of $25.6 million and gross unrealized losses of $0.3 million that had been in an unrealized loss position for greater than twelve months.

At December 31, 2023, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $24.8 million and gross unrealized losses of $0.1 million that had been in an unrealized loss position for less than twelve months; and (ii) investments (for which an allowance for credit losses has not been recorded) with a fair value of $302.3 million and gross unrealized losses of $8.7 million that had been in an unrealized loss position for greater than twelve months.