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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
We view our operations as three insurance product line segments (annuity, health and life) and the investment and fee income segments. Our segments are aligned based on their common characteristics, comparability of profit margins and the way the chief operating decision maker ("CODM") makes operating decisions and assesses the performance of the business. Our CODM is the Chief Executive Officer.

Our insurance product line segments (annuity, health and life) include marketing, underwriting and administration of the policies our insurance subsidiaries sell. The business written in each of the three product categories through all of our insurance subsidiaries is aggregated allowing management and investors to assess the performance of each product category. When analyzing profitability of these segments, we use insurance product margin as the measure of profitability, which is: (i) insurance policy income; and (ii) net investment income allocated to the insurance product lines; less (i) insurance policy benefits and interest credited to policyholders; and (ii) amortization of deferred acquisition costs and present value of future profits, non-deferred commissions and advertising expense. Net investment income is allocated to the product lines using the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period. Net insurance liabilities for the purpose of allocating investment income to product lines are equal to: (i) policyholder account values for interest sensitive products; (ii) total reserves before the fair value adjustments reflected in accumulated other comprehensive income (loss), if applicable, for all other products; less (iii) amounts related to reinsurance business; (iv) deferred acquisition costs; (v) the present value of future profits; and (vi) the value of unexpired options credited to insurance liabilities.

Income from insurance products is the sum of the insurance product margins of the annuity, health and life product lines, less expenses allocated to the insurance lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes insurance product margin and income from insurance products help provide a better understanding of the business and a more meaningful analysis of the results of our insurance product lines.

We market our products through the Consumer and Worksite Divisions that reflect the customers served by the Company. The Consumer and Worksite Divisions are primarily focused on marketing insurance products, several types of which are sold in both divisions and underwritten in the same manner.

The Consumer Division serves individual consumers, engaging with them on the phone, virtually, online, face-to-face with agents, or through a combination of sales channels. This structure unifies consumer capabilities into a single division and integrates the strength of our agent sales forces with one of the largest direct-to-consumer insurance businesses with proven experience in advertising, web/digital and call center support.

The Worksite Division focuses on the sale of voluntary benefit life and health insurance products in the workplace for businesses, associations, and other membership groups, interacting with customers at their place of employment and virtually. With a separate Worksite Division, we are bringing a sharper focus to this high-growth business while further capitalizing on the strength of our wholly-owned subsidiary, Optavise, a national provider of year-round technology-driven employee benefits management services.

The investment segment involves the management of our capital resources, including investments and the management of corporate debt and liquidity. Our measure of profitability of this segment is the total net investment income not allocated to the insurance products. Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable, investment borrowings and financing agreements; (iv) expenses related to the FABN program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our FHLB investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from COLI and alternative investments income not allocated to product lines), net of interest expense on corporate debt and financing agreements. The spread earned from our FHLB
investment borrowing and FABN programs includes the investment income on the matched assets less: (i) interest on investment borrowings related to the FHLB investment borrowing program; (ii) interest credited on funding agreements; and (iii) amortization of deferred acquisition costs related to the FABN program.

Our fee income segment includes the earnings generated from sales of third-party insurance products, services provided by Optavise and the operations of our broker-dealer and registered investment advisor. The resulting fee income metric is the fee income segment's measure of profitability.

Our CODM allocates resources and assesses the performance of each operating segment based on the respective product line insurance margin, investment income not allocated, and fee income metrics described above.

Expenses not allocated to product lines include the expenses of our corporate operations, excluding interest expense on debt.

We measure segment performance by excluding total investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan, income taxes and other non-operating items including earnings attributable to VIEs ("pre-tax operating earnings") because we believe that this performance measure is a better indicator of the ongoing business and trends in our business.  Our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of investment gains (losses), and a long-term focus is necessary to maintain profitability over the life of the business.

Investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan and other non-operating items consisting primarily of earnings attributable to VIEs depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments.  Investment gains (losses) and changes in fair value of embedded derivative liabilities and MRBs may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business.
Operating information by segment is as follows (dollars in millions):

 202420232022
Revenues:  
Annuity:  
Insurance policy income$35.5 $28.4 $23.1 
Net investment income565.0 516.3 480.0 
Total annuity revenues600.5 544.7 503.1 
Health:
Insurance policy income1,618.3 1,594.6 1,617.3 
Net investment income299.6 296.7 293.3 
Total health revenues1,917.9 1,891.3 1,910.6 
Life:
Insurance policy income904.7 882.5 859.4 
Net investment income147.1 144.8 141.9 
Total life revenues1,051.8 1,027.3 1,001.3 
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) 253.7 131.5 (205.3)
Investment income not allocated to product lines449.9 335.6 257.5 
Fee revenue and other income:
Fee revenue190.5 177.6 169.3 
Amounts netted in expenses not allocated to product lines3.4 36.6 30.5 
Total segment revenues$4,467.7 $4,144.6 $3,667.0 

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 202420232022
Expenses:
Annuity:
Insurance policy benefits$(15.2)$29.0 $38.3 
Interest credited253.8 209.4 175.5 
Amortization and non-deferred commissions87.7 71.3 62.4 
Total annuity expenses326.3 309.7 276.2 
Health:
Insurance policy benefits1,239.6 1,234.9 1,237.5 
Amortization and non-deferred commissions161.5 162.1 168.7 
Total health expenses1,401.1 1,397.0 1,406.2 
Life:
Insurance policy benefits576.0 570.0 575.3 
Interest credited51.5 49.3 49.0 
Amortization and non-deferred commissions
98.0 85.8 77.5 
Advertising expense
77.3 92.5 94.3 
Total life expenses802.8 797.6 796.1 
Allocated expenses615.3 599.0 596.6 
Expenses not allocated to product lines75.2 88.3 71.3 
Market value changes of options credited to fixed indexed annuity and life policyholders253.7 131.5 (205.3)
Amounts netted in investment income not allocated to product lines:
Interest expense219.7 169.8 96.0 
Interest credited61.6 28.8 28.5 
Impact of annual option forfeitures related to fixed indexed annuity surrenders(26.0)(7.1)1.0 
Amortization2.4 1.6 1.5 
Other expenses24.3 22.3 (13.4)
Expenses netted in fee revenue:
Commissions and other operating expenses160.5 146.6 145.6 
Total segment expenses3,916.9 3,685.1 3,200.3 
Pre-tax measure of profitability:
Annuity margin274.2 235.0 226.9 
Health margin516.8 494.3 504.4 
Life margin249.0 229.7 205.2 
Total insurance product margin1,040.0 959.0 936.5 
Allocated expenses(615.3)(599.0)(596.6)
Income from insurance products424.7 360.0 339.9 
Fee income margin
30.0 31.0 23.7 
Investment income not allocated to product lines167.9 120.2 143.9 
Expenses not allocated to product lines(71.8)(51.7)(40.8)
Operating earnings before taxes550.8 459.5 466.7 
Income tax expense on operating income121.5 103.4 106.3 
Net operating income$429.3 $356.1 $360.4 
A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions):
 202420232022
Total segment revenues$4,467.7 $4,144.6 $3,667.0 
Total investment gains (losses)(49.9)(69.0)(135.4)
Revenues related to earnings attributable to VIEs31.7 71.2 45.2 
Consolidated revenues4,449.5 4,146.8 3,576.8 
Total segment expenses3,916.9 3,685.1 3,200.3 
Insurance policy benefits - fair value changes in embedded derivative liabilities
(24.7)29.9 (440.2)
Expenses attributable to VIEs36.9 70.5 43.0 
Fair value changes related to agent deferred compensation plan(6.6)3.5 (48.9)
Other expenses8.7 1.0 6.1 
Consolidated expenses3,931.2 3,790.0 2,760.3 
Income before tax518.3 356.8 816.5 
Income tax expense114.3 80.3 185.9 
Net income$404.0 $276.5 $630.6 

Segment balance sheet information was as follows (dollars in millions):
20242023
Assets:
Annuity$13,006.2 $12,006.5 
Health9,116.7 9,512.5 
Life4,194.7 4,153.9 
Investments not allocated to product lines10,597.6 8,711.5 
Assets of our non-life companies included in the fee income segment
257.7 243.9 
Assets of our other non-life companies679.7 398.8 
Total assets$37,852.6 $35,027.1 
Liabilities:
Annuity$13,561.2 $12,859.8 
Health9,490.7 9,866.9 
Life4,311.2 4,294.6 
Liabilities associated with investments not allocated to product lines (a)7,541.1 5,561.6 
Liabilities of our non-life companies included in the fee income segment37.0 35.2 
Liabilities of our other non-life companies413.0 193.4 
Total liabilities$35,354.2 $32,811.5 
___________
(a)     Includes investment borrowings, policyholder account balances related to funding agreements, borrowings related to VIEs and notes payable - direct corporate obligations.