INVESTMENT BORROWINGS

9 Months Ended

Sep. 30, 2025

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 September 30, 2025, the carrying value of the FHLB common stock was $109.3 million. As of September 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 $3.4 billion at September 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

Maturity

Interest rate at

borrowed

date

September 30, 2025

50.0

January 2026

Variable rate - 4.801%

50.0

January 2026

Variable rate - 4.788%

100.0

January 2026

Variable rate - 4.705%

5.0

May 2026

Variable rate - 4.556%

21.8

May 2026

Variable rate - 4.595%

50.0

May 2026

Variable rate - 4.400%

10.0

November 2026

Variable rate - 4.604%

75.0

December 2026

Variable rate - 4.505%

75.0

January 2027

Variable rate - 4.644%

50.0

January 2027

Variable rate - 4.761%

50.0

January 2027

Variable rate - 4.548%

100.0

February 2027

Variable rate - 4.595%

50.0

April 2027

Variable rate - 4.395%

50.0

May 2027

Variable rate - 4.405%

100.0

June 2027

Variable rate - 4.500%

10.0

June 2027

Variable rate - 4.723%

15.5

July 2027

Variable rate - 4.570%

50.0

July 2027

Variable rate - 4.765%

12.5

September 2027

Variable rate - 4.656%

57.7

November 2027

Variable rate - 4.801%

100.0

December 2027

Variable rate - 4.665%

100.0

December 2027

Variable rate - 4.635%

50.0

December 2027

Variable rate - 4.580%

75.0

January 2028

Variable rate - 4.573%

134.5

January 2028

Variable rate - 4.563%

50.0

January 2028

Variable rate - 4.801%

50.0

January 2028

Variable rate - 4.705%

100.0

January 2028

Variable rate - 4.753%

100.0

February 2028

Variable rate - 4.702%

21.0

February 2028

Variable rate - 4.625%

22.0

February 2028

Variable rate - 4.651%

100.0

February 2028

Variable rate - 4.615%

27.0

July 2028

Variable rate - 4.600%

15.0

July 2028

Variable rate - 4.510%

35.0

August 2028

Variable rate - 4.520%

12.5

September 2028

Variable rate - 4.752%

42.2

May 2029

Variable rate - 4.733%

50.0

August 2029

Variable rate- 4.690%

50.0

April 2030

Variable rate - 4.963%

50.0

May 2030

Variable rate - 4.715%

50.0

May 2030

Variable rate - 4.822%

100.0

May 2030

Variable rate - 4.791%

125.0

September 2030

Variable rate - 4.630%

2,441.7

Generally, the variable and fixed rate borrowings are pre-payable. At September 30, 2025, the aggregate prepayment penalty on such outstanding borrowings was not material.

Interest expense of $83.4 million and $94.6 million during the nine months ended September 30, 2025 and 2024, respectively, was recognized related to total borrowings from the FHLB, reflecting lower interest rates on the variable rate investment borrowings partially offset by higher average investment borrowings during the nine months ended September 30, 2025.