XML 32 R19.htm IDEA: XBRL DOCUMENT v3.25.2
INVESTMENT BORROWINGS
 6 Months Ended
Jun. 30, 2025
Investment Borrowings [Abstract]  
INVESTMENT BORROWINGS INVESTMENT BORROWINGS
Three of the Company's insurance subsidiaries (Bankers Life, Washington National Insurance Company ("Washington National") and Colonial Penn Life Insurance Company ("Colonial Penn")) are members of the FHLB.  As members of the FHLB, our insurance subsidiaries have the ability to borrow on a collateralized basis from the FHLB. We are required to hold certain minimum amounts of FHLB common stock as a condition of membership in the FHLB, and additional amounts based on the amount of the borrowings.  At June 30, 2025, the carrying value of the FHLB common stock was $106.7 million.  As of June 30, 2025, collateralized borrowings from the FHLB totaled $2.4 billion and the proceeds were used to purchase matched variable rate fixed maturity securities with similar durations.  The borrowings are classified as investment borrowings in the accompanying consolidated balance sheet.  The borrowings are collateralized by investments with an estimated fair value of $3.3 billion at June 30, 2025, which are maintained in a custodial account for the benefit of the FHLB.  Substantially all of such investments are classified as fixed maturities, available for sale, in our consolidated balance sheet.
The following summarizes the terms of the borrowings from the FHLB by our insurance subsidiaries (dollars in millions):
Amount
MaturityInterest rate at
borroweddateJune 30, 2025
$125.0 September 2025
Variable rate - 4.740%
50.0 January 2026
Variable rate - 4.768%
50.0 January 2026
Variable rate - 4.741%
100.0 January 2026
Variable rate - 4.700%
5.0 May 2026
Variable rate - 4.816%
21.8 May 2026
Variable rate - 4.590%
50.0 May 2026
Variable rate - 4.660%
10.0 November 2026
Variable rate - 4.864%
75.0 December 2026
Variable rate - 4.674%
75.0 January 2027
Variable rate - 4.627%
50.0 January 2027
Variable rate - 4.688%
50.0 January 2027
Variable rate - 4.717%
100.0 February 2027
Variable rate - 4.718%
50.0 April 2027
Variable rate - 4.574%
50.0 May 2027
Variable rate - 4.584%
100.0 June 2027
Variable rate - 4.760%
10.0 June 2027
Variable rate - 4.983%
15.5 July 2027
Variable rate - 4.741%
50.0 July 2027
Variable rate - 4.944%
50.0 July 2027
Variable rate - 4.961%
12.5 September 2027
Variable rate - 4.916%
57.7 November 2027
Variable rate - 4.736%
100.0 December 2027
Variable rate - 4.742%
100.0 December 2027
Variable rate - 4.758%
50.0 December 2027
Variable rate - 4.751%
75.0 January 2028
Variable rate - 4.716%
134.5 January 2028
Variable rate - 4.706%
50.0 January 2028
Variable rate - 4.728%
50.0 January 2028
Variable rate - 4.782%
100.0 January 2028
Variable rate - 4.694%
100.0 February 2028
Variable rate - 4.785%
21.0 February 2028
Variable rate - 4.702%
22.0 February 2028
Variable rate - 4.772%
100.0 February 2028
Variable rate - 4.738%
27.0 July 2028
Variable rate - 4.771%
15.0 July 2028
Variable rate - 4.770%
35.0 August 2028
Variable rate - 4.780%
12.5 September 2028
Variable rate - 5.012%
42.2 May 2029
Variable rate - 4.876%
50.0 April 2030
Variable rate - 4.904%
50.0 May 2030
Variable rate - 4.894%
50.0 May 2030
Variable rate - 4.905%
100.0 May 2030
Variable rate - 4.912%
$2,441.7   
Generally, the variable and fixed rate borrowings are pre-payable.  At June 30, 2025, the aggregate prepayment penalty on such outstanding borrowings was not material.

Interest expense of $53.7 million and $62.8 million during the six months ended June 30, 2025 and 2024, respectively, was recognized related to total borrowings from the FHLB, reflecting lower interest rates on the variable rate investment borrowings during the six months ended June 30, 2025.