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Fair Value of Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2023
Fair Value Disclosures [Abstract] |
Summary of Company's Fair Value Hierarchy Measured at Recurring Basis | The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. As of December 31, 2023, Level 3 investments comprised approximately 9.5% of the Company's total investment portfolio at fair value.
($ in millions) |  | Carrying Amount |  | Fair Value |  | Fair Value Measurements at Reporting Date Using
|  |  |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2023 |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |
Fixed maturity securities |  |  |  |  |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 653.2 |  |  | $ | 653.2 |  |  | $ | — |  |  | $ | 653.2 |  |  | $ | — |
Other, including U.S. Treasury securities |  | 388.8 |  |  | 388.8 |  |  | 45.6 |  |  | 343.2 |  |  | — |
Municipal bonds |  | 1,270.1 |  |  | 1,270.1 |  |  | — |  |  | 1,196.1 |  |  | 74.0 |
Foreign government bonds |  | 22.1 |  |  | 22.1 |  |  | — |  |  | 22.1 |  |  | — |
Corporate bonds |  | 1,772.7 |  |  | 1,772.7 |  |  | 10.1 |  |  | 1,420.1 |  |  | 342.5 |
Other asset-backed securities |  | 1,128.4 |  |  | 1,128.4 |  |  | — |  |  | 1,030.9 |  |  | 97.5 |
Total fixed maturity securities |  | 5,235.3 |  |  | 5,235.3 |  |  | 55.7 |  |  | 4,665.6 |  |  | 514.0 |
Equity securities |  | 86.2 |  |  | 86.2 |  |  | 17.9 |  |  | 63.8 |  |  | 4.5 |
Short-term investments |  | 132.9 |  |  | 132.9 |  |  | 132.9 |  |  | — |  |  | — |
Other investments |  | 19.0 |  |  | 19.0 |  |  | — |  |  | 19.0 |  |  | — |
Totals |  | $ | 5,473.4 |  |  | $ | 5,473.4 |  |  | $ | 206.5 |  |  | $ | 4,748.4 |  |  | $ | 518.5 |
Separate Account variable annuity assets(1) |  | $ | 3,294.1 |  |  | $ | 3,294.1 |  |  | $ | 3,294.1 |  |  | $ | — |  |  | $ | — |
Financial Liabilities(2) |  | $ | 86.0 |  |  | $ | 86.0 |  |  | $ | — |  |  | $ | 3.6 |  |  | $ | 82.4 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |
Fixed maturity securities |  |  |  |  |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 570.4 |  |  | $ | 570.4 |  |  | $ | — |  |  | $ | 567.8 |  |  | $ | 2.6 |
Other, including U.S. Treasury securities |  | 342.6 |  |  | 342.6 |  |  | 24.6 |  |  | 318.0 |  |  | — |
Municipal bonds |  | 1,269.7 |  |  | 1,269.7 |  |  | — |  |  | 1,215.3 |  |  | 54.4 |
Foreign government bonds |  | 33.6 |  |  | 33.6 |  |  | — |  |  | 33.6 |  |  | — |
Corporate bonds |  | 1,901.7 |  |  | 1,901.7 |  |  | 12.2 |  |  | 1,628.2 |  |  | 261.3 |
Other asset-backed securities |  | 1,067.0 |  |  | 1,067.0 |  |  | — |  |  | 962.0 |  |  | 105.0 |
Total fixed maturity securities |  | 5,185.0 |  |  | 5,185.0 |  |  | 36.8 |  |  | 4,724.9 |  |  | 423.3 |
Equity securities |  | 99.6 |  |  | 99.6 |  |  | 23.3 |  |  | 74.3 |  |  | 2.0 |
Short-term investments |  | 109.4 |  |  | 109.4 |  |  | 109.4 |  |  | — |  |  | — |
Other investments |  | 38.6 |  |  | 38.6 |  |  | — |  |  | 38.6 |  |  | — |
Totals |  | $ | 5,432.6 |  |  | $ | 5,432.6 |  |  | $ | 169.5 |  |  | $ | 4,837.8 |  |  | $ | 425.3 |
Separate Account variable annuity assets(1) |  | $ | 2,792.3 |  |  | $ | 2,792.3 |  |  | $ | 2,792.3 |  |  | $ | — |  |  | $ | — |
Financial Liabilities(2) |  | $ | 92.5 |  |  | $ | 92.5 |  |  | $ | — |  |  | $ | 1.2 |  |  | $ | 91.3 |
(1) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of Separate Account variable annuity assets. (2) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.
Schedule of Table for Reconciliations for all Level 3 Assets Measured at Fair Value on a Recurring Basis | The following tables present reconciliations for the periods indicated for all Level 3 financial assets and financial liabilities measured at fair value on a recurring basis.
($ in millions) |  | Financial Assets |  | Financial Liabilities(1)
|  | Municipal Bonds |  | Corporate Bonds |  | Mortgage-Backed and Other Asset- Backed Securities(2) |  | Total Fixed Maturity Securities |  | Equity Securities |  | Total |  |
Beginning balance, January 1, 2023 |  | $ | 54.4 |  |  | $ | 261.3 |  |  | $ | 107.6 |  |  | $ | 423.3 |  |  | $ | 2.0 |  |  | $ | 425.3 |  |  | $ | 91.3 |
Transfers into Level 3(3) |  | — |  |  | 76.5 |  |  | 0.8 |  |  | 77.3 |  |  | 2.1 |  |  | 79.4 |  |  | — |
Transfers out of Level 3(3) |  | — |  |  | (3.7) |  |  | — |  |  | (3.7) |  |  | — |  |  | (3.7) |  |  | — |
Total gains or losses |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment gains (losses) included in net income |  | — |  |  | — |  |  | — |  |  | — |  |  | 0.4 |  |  | 0.4 |  |  | — |
Net investment (gains) losses included in net income related to financial liabilities |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1.3 |
Net unrealized investment gains (losses) included in OCI |  | 11.3 |  |  | (17.1) |  |  | 5.0 |  |  | (0.8) |  |  | — |  |  | (0.8) |  |  | 0.4 |
Purchases |  | 9.5 |  |  | 64.5 |  |  | 2.0 |  |  | 76.0 |  |  | — |  |  | 76.0 |  |  | — |
Issuances |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8.0 |
Sales |  | — |  |  | (7.7) |  |  | — |  |  | (7.7) |  |  | — |  |  | (7.7) |  |  | — |
Settlements |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Paydowns, maturities and distributions |  | (1.2) |  |  | (31.3) |  |  | (17.9) |  |  | (50.4) |  |  | — |  |  | (50.4) |  |  | (18.6) |
Ending balance, December 31, 2023 |  | $ | 74.0 |  |  | $ | 342.5 |  |  | $ | 97.5 |  |  | $ | 514.0 |  |  | $ | 4.5 |  |  | $ | 518.5 |  |  | $ | 82.4 |
Beginning balance, January 1, 2022 |  | $ | 60.8 |  |  | $ | 210.3 |  |  | $ | 98.9 |  |  | $ | 370.0 |  |  | $ | 1.4 |  |  | $ | 371.4 |  |  | $ | 111.4 |
Transfers into Level 3(3) |  | 0.6 |  |  | 157.9 |  |  | 34.5 |  |  | 193.0 |  |  | 0.8 |  |  | 193.8 |  |  | — |
Transfers out of Level 3(3) |  | (3.2) |  |  | (34.8) |  |  | (4.8) |  |  | (42.8) |  |  | — |  |  | (42.8) |  |  | — |
Total gains or losses |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment gains (losses) included in net income |  | — |  |  | — |  |  | (3.3) |  |  | (3.3) |  |  | (0.1) |  |  | (3.4) |  |  | — |
Net investment (gains) losses included in net income related to financial liabilities |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14.8) |
Net unrealized investment gains (losses) included in OCI |  | (10.5) |  |  | (16.1) |  |  | (11.6) |  |  | (38.2) |  |  | — |  |  | (38.2) |  |  | (2.6) |
Purchases |  | 0.2 |  |  | 20.2 |  |  | 12.8 |  |  | 33.2 |  |  | — |  |  | 33.2 |  |  | — |
Issuances |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7.4 |
Sales |  | — |  |  | — |  |  | (4.8) |  |  | (4.8) |  |  | — |  |  | (4.8) |  |  | — |
Settlements |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Paydowns, maturities and distributions |  | 6.5 |  |  | (76.2) |  |  | (14.1) |  |  | (83.8) |  |  | (0.1) |  |  | (83.9) |  |  | (10.1) |
Ending balance, December 31, 2022 |  | $ | 54.4 |  |  | $ | 261.3 |  |  | $ | 107.6 |  |  | $ | 423.3 |  |  | $ | 2.0 |  |  | $ | 425.3 |  |  | $ | 91.3 |
(1) Represents embedded derivatives, all related to the Company's FIA products, reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the years ended December 31, 2023 and 2022 were attributable to changes in the availability of observable market information for individual fixed maturity securities and short-term investments. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined.
Schedule of Fair Value Measurement Inputs and Valuation Techniques | Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions, 2022 information recast for the adoption of LDTI):
($ in millions)
|  | Total |  | Internal |  | External
December 31, 2023 |  |  |  |  |  |
Financial Assets |  |  |  |  |  |
Fixed maturity securities |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |
Mortgage-backed securities |  | $ | — |  |  | $ | — |  |  | $ | — |
Municipal bonds |  | 74.0 |  |  | — |  |  | 74.0 |
Corporate bonds |  | 342.5 |  |  | 180.4 |  |  | 162.1 |
Other asset-backed securities |  | 97.5 |  |  | — |  |  | 97.5 |
Total fixed maturity securities |  | 514.0 |  |  | 180.4 |  |  | 333.6 |
Equity securities |  | 4.5 |  |  | — |  |  | 4.5 |
Totals |  | $ | 518.5 |  |  | $ | 180.4 |  |  | $ | 338.1 |
Financial Liabilities(1) |  | $ | 82.4 |  |  | $ | 82.4 |  |  | $ | — |
December 31, 2022 |  |  |  |  |  |
Financial Assets |  |  |  |  |  |
Fixed maturity securities |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |
Mortgage-backed securities |  | $ | 2.6 |  |  | $ | — |  |  | $ | 2.6 |
Municipal bonds |  | 54.4 |  |  | — |  |  | 54.4 |
Corporate bonds |  | 261.3 |  |  | 9.5 |  |  | 251.8 |
Other asset-backed securities |  | 105.0 |  |  | — |  |  | 105.0 |
Total fixed maturity securities |  | 423.3 |  |  | 9.5 |  |  | 413.8 |
Equity securities |  | 2.0 |  |  | — |  |  | 2.0 |
Totals |  | $ | 425.3 |  |  | $ | 9.5 |  |  | $ | 415.8 |
Financial Liabilities(1) |  | $ | 91.3 |  |  | $ | 91.3 |  |  | $ | — |
(1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized within Level 3.
($ in millions) |  |
|  | Fair Value at December 31, 2023 |  | Valuation Techniques |  | Unobservable Inputs |  | Range (Weighted Average) and Single Point Best Estimate(1) |  | Impact of Increase in Input on Fair Value
Financial Assets |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 180.4 |  |  | discounted cash flow |  | yield |  | 6.7% - 17.0% |  | Decrease
Financial Liabilities |  |  |  |  |  |  |  |  |  |
Derivatives embedded in fixed indexed annuity products |  | $ | 86.3 |  |  | discounted cash flow |  | lapse rate |  | 5.9% |  | Decrease
|  |  |  |  |  | mortality multiplier(2) |  | 69.4% |  | Decrease
|  |  |  |  |  | option budget |  | 0.9% - 3.8% |  | Increase
|  |  |  |  |  | non-performance adjustment(3) |  | 5.0% |  | Decrease
Net MRBs |  | $ | (3.9) |  |  | discounted cash flow |  | lapse rate |  | 5.9% |  | Decrease
|  |  |  |  |  | mortality multiplier(2) |  | 67.8% |  | Increase
(1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate.
($ in millions) |  |
|  | Fair Value at December 31, 2022 |  | Valuation Techniques |  | Unobservable Inputs |  | Range (Weighted Average) and Single Point Best Estimate(1) |  | Impact of Increase in Input on Fair Value
Financial Assets |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 9.5 |  |  | discounted cash flow |  | yield |  | 6.8% |  | Decrease
Financial Liabilities |  |  |  |  |  |  |  |  |  |
Derivatives embedded in fixed indexed annuity products |  | $ | 91.0 |  |  | discounted cash flow |  | lapse rate |  | 5.4% |  | Decrease
|  |  |  |  |  | mortality multiplier(2) |  | 67.8% |  | Decrease
|  |  |  |  |  | option budget |  | 0.9% - 3.4% |  | Increase
|  |  |  |  |  | non-performance adjustment(3) |  | 5.0% |  | Decrease
Net MRBs |  | $ | 0.3 |  |  | discounted cash flow |  | lapse rate |  | 5.3% |  | Decrease
|  |  |  |  |  | mortality multiplier(2) |  | 67.8% |  | Increase
(1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB:
|  | December 31, 2023
|  | Whole Life |  | Term Life |  | Experience Life |  | Limited-Pay Whole Life |  | SPIA (life contingent)
Mortality |  |  |  |  |  |  |  |  |  |
Actual experience |  | 0.7 | % |  | 0.1% - 0.7% |  | 1.6 | % |  | 0.2 | % |  | N.M.
Expected experience |  | 0.7 | % |  | 0.1% - 2.3% |  | 1.6 | % |  | 0.3 | % |  | N.M.
Lapses |  |  |  |  |  |  |  |  |  |
Actual experience |  | 3.4 | % |  | 5.3% - 13.0% |  | 3.2 | % |  | 4.2 | % |  | N.M.
Expected experience |  | 4.8 | % |  | 5.8% - 36.8% |  | 3.1 | % |  | 5.4 | % |  | N.M.
|  | December 31, 2022
|  | Whole Life |  | Term Life |  | Experience Life |  | Limited-Pay Whole Life |  | SPIA (life contingent)
Mortality |  |  |  |  |  |  |  |  |  |
Actual experience |  | 0.7 | % |  | 0.1% - 0.3% |  | 1.6 | % |  | 0.3 | % |  | N.M.
Expected experience |  | 0.7 | % |  | 0.1% - 1.0% |  | 1.4 | % |  | 0.2 | % |  | N.M.
Lapses |  |  |  |  |  |  |  |  |  |
Actual experience |  | 3.2 | % |  | 5.7% - 58.1% |  | 3.3 | % |  | 3.8 | % |  | N.M.
Expected experience |  | 5.9 | % |  | 6.6% - 9.8% |  | 3.2 | % |  | 7.6 | % |  | N.M.
Summary of Fair Value Assets and Liabilities Measured on Nonrecurring Basis |
($ in millions) |  | Carrying Amount |  | Fair Value |  | Fair Value Measurements at Reporting Date Using
|  |  |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2023 |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |
Other investments |  | $ | 218.4 |  |  | $ | 221.7 |  |  | $ | — |  |  | $ | 33.8 |  |  | $ | 187.9 |
Deposit asset on reinsurance |  | 2,496.6 |  |  | 2,259.6 |  |  | — |  |  | — |  |  | 2,259.6 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |
Policyholders' account balances |  | 4,996.3 |  |  | 4,861.8 |  |  | — |  |  | — |  |  | 4,861.8 |
Other policyholder funds |  | 916.0 |  |  | 916.0 |  |  | — |  |  | 908.7 |  |  | 7.3 |
Long-term debt |  | 546.0 |  |  | 571.4 |  |  | — |  |  | 571.4 |  |  | — |
December 31, 2022 |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |
Other investments |  | $ | 167.4 |  |  | $ | 170.9 |  |  | $ | — |  |  | $ | — |  |  | $ | 170.9 |
Deposit asset on reinsurance |  | 2,516.6 |  |  | 2,207.2 |  |  | — |  |  | — |  |  | 2,207.2 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |
Policyholders' account balances |  | 5,039.7 |  |  | 4,940.3 |  |  | — |  |  | — |  |  | 4,940.3 |
Other policyholder funds |  | 863.0 |  |  | 863.0 |  |  | — |  |  | 810.7 |  |  | 52.3 |
Reverse repurchase agreements |  | 70.2 |  |  | 73.9 |  |  | — |  |  | 73.9 |  |  | — |
Short-term debt |  | 249.0 |  |  | 249.0 |  |  | — |  |  | — |  |  | 249.0 |
Long-term debt |  | 249.0 |  |  | 240.5 |  |  | — |  |  | 240.5 |  |  | — |

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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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