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Long-Duration Insurance Contracts | 12 Months Ended
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Dec. 31, 2024
Insurance [Abstract] |
Long-Duration Insurance Contracts | Long-Duration Insurance Contracts Liability for Future Policy Benefits As of and for the years ended December 31, 2024, 2023, and 2022 the Company updated the net premium ratio when updating for actual historical experience for each year; future cash flow assumptions were also reviewed and updated. The following tables summarize balances and changes in LFPB for traditional and limited-payment contracts. The balances of and changes in LFPB as of and for the year ended December 31, 2024 were as follows:
($ in millions) |  |  |  |  |  |  |  |  |  |  |  |
|  | Whole Life |  | Term Life |  | Experience Life(1) |  | Limited-Pay Whole Life |  | Supplemental Health(2) |  | SPIA (life contingent)
Present value of expected net premiums: |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2024 |  | $ | 223.2 |  |  | $ | 240.0 |  |  | $ | 71.7 |  |  | $ | 32.2 |  |  | $ | 182.0 |  |  | $ | — |
January 1, 2024 balance at original discount rate |  | 247.1 |  |  | 256.6 |  |  | 67.0 |  |  | 33.9 |  |  | 213.4 |  |  | — |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
Change in cash flow assumptions |  | 13.8 |  |  | 4.6 |  |  | 1.5 |  |  | 2.2 |  |  | (5.2) |  |  | — |
Actual variances from expected experience |  | 3.2 |  |  | (0.5) |  |  | — |  |  | — |  |  | 2.9 |  |  | — |
Adjusted balance at January 1, 2024 |  | 264.1 |  |  | 260.7 |  |  | 68.5 |  |  | 36.1 |  |  | 211.1 |  |  | — |
Issuances(3) |  | 12.6 |  |  | 25.2 |  |  | — |  |  | 4.0 |  |  | 20.9 |  |  | 2.8 |
Interest accruals(4) |  | 7.6 |  |  | 10.7 |  |  | 3.7 |  |  | 1.4 |  |  | 6.8 |  |  | — |
Net premiums collected(5) |  | (21.1) |  |  | (25.4) |  |  | (6.8) |  |  | (4.7) |  |  | (24.2) |  |  | (2.8) |
December 31, 2024 balance at original discount rate |  | 263.2 |  |  | 271.2 |  |  | 65.4 |  |  | 36.8 |  |  | 214.6 |  |  | — |
Effect of changes in discount rate assumptions |  | (34.1) |  |  | (25.3) |  |  | 1.2 |  |  | (2.6) |  |  | (34.7) |  |  | — |
Balance at December 31, 2024 |  | 229.1 |  |  | 245.9 |  |  | 66.6 |  |  | 34.2 |  |  | 179.9 |  |  | — |
Present value of expected future policy benefits: |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2024 |  | 522.0 |  |  | 370.1 |  |  | 883.0 |  |  | 89.6 |  |  | 427.6 |  |  | 104.2 |
January 1, 2024 balance at original discount rate |  | 592.1 |  |  | 405.4 |  |  | 797.5 |  |  | 105.6 |  |  | 517.9 |  |  | 111.4 |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
Changes in cash flow assumptions |  | 13.7 |  |  | 5.6 |  |  | 2.2 |  |  | 2.4 |  |  | (6.5) |  |  | — |
Actual variances from expected experience |  | 3.4 |  |  | (1.0) |  |  | 0.2 |  |  | — |  |  | 2.5 |  |  | 0.2 |
Adjusted balance at January 1, 2024 |  | 609.2 |  |  | 410.0 |  |  | 799.9 |  |  | 108.0 |  |  | 513.9 |  |  | 111.6 |
Issuances |  | 12.6 |  |  | 25.5 |  |  | — |  |  | 4.0 |  |  | 20.9 |  |  | 2.8 |
Interest accruals |  | 19.8 |  |  | 16.1 |  |  | 46.7 |  |  | 4.2 |  |  | 14.4 |  |  | 4.3 |
Benefit payments(6) |  | (24.2) |  |  | (18.4) |  |  | (63.8) |  |  | (1.9) |  |  | (66.4) |  |  | (11.4) |
December 31, 2024 balance at original discount rate |  | 617.4 |  |  | 433.2 |  |  | 782.8 |  |  | 114.3 |  |  | 482.8 |  |  | 107.3 |
Effect of changes in discount rate assumptions |  | (113.1) |  |  | (55.4) |  |  | 30.4 |  |  | (28.1) |  |  | (99.4) |  |  | (10.0) |
Balance at December 31, 2024 |  | 504.3 |  |  | 377.8 |  |  | 813.2 |  |  | 86.2 |  |  | 383.4 |  |  | 97.3 |
Net liability for future policy benefits |  | 275.2 |  |  | 131.8 |  |  | 746.6 |  |  | 52.1 |  |  | 203.5 |  |  | 97.3 |
Less: Reinsurance recoverable |  | (60.2) |  |  | (19.3) |  |  | (0.9) |  |  | (1.4) |  |  | (4.7) |  |  | (3.5) |
Net liability for future policy benefits, after reinsurance recoverable |  | 215.0 |  |  | 112.5 |  |  | 745.7 |  |  | 50.7 |  |  | 198.8 |  |  | 93.8 |
Impact of flooring on net liability for future policy benefits |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net liability for future policy benefits at December 31, 2024 |  | $ | 215.0 |  |  | $ | 112.5 |  |  | $ | 745.7 |  |  | $ | 50.7 |  |  | $ | 198.8 |  |  | $ | 93.8 |
(1) Experience Life contains both whole life and term elements. (2) As of December, 2024, the net LFPB for Supplemental Health was $72.2 million for cancer, $18.8 million for accident, $21.4 million for disability and $86.4 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2023 were as follows:
($ in millions) |  |  |  |  |  |  |  |  |  |  |  |
|  | Whole Life |  | Term Life |  | Experience Life(1) |  | Limited-Pay Whole Life |  | Supplemental Health(2) |  | SPIA (life contingent)
Present value of expected net premiums: |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2023 |  | $ | 215.1 |  |  | $ | 234.7 |  |  | $ | 68.3 |  |  | $ | 29.7 |  |  | $ | 167.4 |  |  | $ | — |
January 1, 2023 balance at original discount rate |  | 245.9 |  |  | 265.4 |  |  | 65.5 |  |  | 32.4 |  |  | 205.1 |  |  | — |
Effect of: |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Change in cash flow assumptions |  | — |  |  | (16.8) |  |  | 3.7 |  |  | (0.2) |  |  | 6.5 |  |  | — |
Actual variances from expected experience |  | 3.8 |  |  | (2.7) |  |  | 0.7 |  |  | 1.0 |  |  | (1.6) |  |  | — |
Adjusted balance at January 1, 2023 |  | 249.7 |  |  | 245.9 |  |  | 69.9 |  |  | 33.2 |  |  | 210.0 |  |  | — |
Issuances(3) |  | 10.8 |  |  | 25.2 |  |  | — |  |  | 4.3 |  |  | 19.4 |  |  | 5.6 |
Interest accruals(4) |  | 7.2 |  |  | 10.3 |  |  | 3.7 |  |  | 1.2 |  |  | 6.0 |  |  | — |
Net premiums collected(5) |  | (20.6) |  |  | (24.8) |  |  | (6.6) |  |  | (4.8) |  |  | (22.0) |  |  | (5.6) |
December 31, 2023 balance at original discount rate |  | 247.1 |  |  | 256.6 |  |  | 67.0 |  |  | 33.9 |  |  | 213.4 |  |  | — |
Effect of changes in discount rate assumptions |  | (23.9) |  |  | (16.6) |  |  | 4.7 |  |  | (1.7) |  |  | (31.4) |  |  | — |
Balance at December 31, 2023 |  | 223.2 |  |  | 240.0 |  |  | 71.7 |  |  | 32.2 |  |  | 182.0 |  |  | — |
Present value of expected future policy benefits: |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2023 |  | 493.6 |  |  | 347.0 |  |  | 867.5 |  |  | 79.4 |  |  | 431.7 |  |  | 103.3 |
January 1, 2023 balance at original discount rate |  | 581.9 |  |  | 401.0 |  |  | 805.2 |  |  | 98.6 |  |  | 537.1 |  |  | 113.4 |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
Changes in cash flow assumptions |  | (0.6) |  |  | (16.7) |  |  | 5.0 |  |  | (0.2) |  |  | 8.9 |  |  | — |
Actual variances from expected experience |  | 4.0 |  |  | 1.3 |  |  | 1.1 |  |  | 1.0 |  |  | (2.4) |  |  | (0.8) |
Adjusted balance at January 1, 2023 |  | 585.3 |  |  | 385.6 |  |  | 811.3 |  |  | 99.4 |  |  | 543.6 |  |  | 112.6 |
Issuances |  | 10.7 |  |  | 25.8 |  |  | — |  |  | 4.3 |  |  | 19.4 |  |  | 6.3 |
Interest accruals |  | 19.0 |  |  | 15.2 |  |  | 47.4 |  |  | 3.9 |  |  | 14.4 |  |  | 4.4 |
Benefit payments(6) |  | (22.9) |  |  | (21.2) |  |  | (61.2) |  |  | (2.0) |  |  | (59.5) |  |  | (11.9) |
December 31, 2023 balance at original discount rate |  | 592.1 |  |  | 405.4 |  |  | 797.5 |  |  | 105.6 |  |  | 517.9 |  |  | 111.4 |
Effect of changes in discount rate assumptions |  | (70.1) |  |  | (35.3) |  |  | 85.5 |  |  | (16.0) |  |  | (90.3) |  |  | (7.2) |
Balance at December 31, 2023 |  | 522.0 |  |  | 370.1 |  |  | 883.0 |  |  | 89.6 |  |  | 427.6 |  |  | 104.2 |
Net liability for future policy benefits |  | 298.8 |  |  | 130.2 |  |  | 811.3 |  |  | 57.4 |  |  | 245.6 |  |  | 104.2 |
Less: Reinsurance recoverable |  | (64.3) |  |  | (19.1) |  |  | (1.0) |  |  | (1.2) |  |  | (4.0) |  |  | (3.6) |
Net liability for future policy benefits, after reinsurance recoverable |  | 234.5 |  |  | 111.1 |  |  | 810.3 |  |  | 56.2 |  |  | 241.6 |  |  | 100.6 |
Impact of flooring on net liability for future policy benefits |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net liability for future policy benefits at December 31, 2023 |  | $ | 234.5 |  |  | $ | 111.1 |  |  | $ | 810.3 |  |  | $ | 56.2 |  |  | $ | 241.6 |  |  | $ | 100.6 |
(1) Experience Life contains both whole life and term elements. (2) As of December 31, 2023, the net LFPB for Supplemental Health was $92.7 million for cancer, $21.4 million for accident, $23.5 million for disability and $104.0 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. The balances of and changes in LFPB as of and for the year ended December 31, 2022 were as follows:
($ in millions) |  |  |  |  |  |  |  |
|  | Whole Life |  | Term Life |  | Experience Life(1) |  | Limited-Pay Whole Life |  | Supplemental Health(2) |  | SPIA (life contingent)
Present Value of Expected Net Premiums |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2022(7) |  | $ | 260.7 |  |  | $ | 264.4 |  |  | $ | 74.6 |  |  | $ | 29.7 |  |  | $ | 226.7 |  |  | $ | — |
January 1, 2022 balance at original discount rate(7) |  | 239.3 |  |  | 235.4 |  |  | 55.9 |  |  | 27.2 |  |  | 223.1 |  |  | — |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
Change in cash flow assumptions |  | 5.2 |  |  | 18.7 |  |  | 9.1 |  |  | 2.0 |  |  | 12.2 |  |  | — |
Actual variances from expected experience |  | 7.2 |  |  | (4.2) |  |  | 3.0 |  |  | 1.6 |  |  | (25.3) |  |  | — |
Adjusted balance at January 1, 2022 |  | 251.7 |  |  | 249.9 |  |  | 68.0 |  |  | 30.8 |  |  | 210.0 |  |  | — |
Issuances(3) |  | 12.5 |  |  | 28.0 |  |  | — |  |  | 6.3 |  |  | 12.0 |  |  | 5.3 |
Interest accruals(4) |  | 6.7 |  |  | 9.0 |  |  | 3.3 |  |  | 1.1 |  |  | 5.9 |  |  | — |
Net premiums collected(5) |  | (25.0) |  |  | (21.5) |  |  | (5.8) |  |  | (5.8) |  |  | (22.8) |  |  | (5.3) |
December 31, 2022 balance at original discount rate |  | 245.9 |  |  | 265.4 |  |  | 65.5 |  |  | 32.4 |  |  | 205.1 |  |  | — |
Effect of changes in discount rate assumptions |  | (30.8) |  |  | (30.7) |  |  | 2.8 |  |  | (2.7) |  |  | (37.7) |  |  | — |
Balance at December 31, 2022 |  | 215.1 |  |  | 234.7 |  |  | 68.3 |  |  | 29.7 |  |  | 167.4 |  |  | — |
Present Value of Expected Future Policy Benefits |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2022(7) |  | 660.4 |  |  | 411.5 |  |  | 1,172.7 |  |  | 102.9 |  |  | 590.6 |  |  | 129.1 |
January 1, 2022 balance at original discount rate(7) |  | 566.1 |  |  | 360.0 |  |  | 802.6 |  |  | 86.6 |  |  | 584.2 |  |  | 115.7 |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
Changes in cash flow assumptions |  | 5.2 |  |  | 21.5 |  |  | 11.0 |  |  | 2.0 |  |  | 13.8 |  |  | — |
Actual variances from expected experience |  | 7.7 |  |  | (4.7) |  |  | 3.6 |  |  | 1.4 |  |  | (30.0) |  |  | 0.4 |
Adjusted balance at January 1, 2022 |  | 579.0 |  |  | 376.8 |  |  | 817.2 |  |  | 90.0 |  |  | 568.0 |  |  | 116.1 |
Issuances |  | 12.4 |  |  | 28.3 |  |  | — |  |  | 6.4 |  |  | 12.0 |  |  | 5.3 |
Interest accruals |  | 18.0 |  |  | 14.4 |  |  | 47.4 |  |  | 3.4 |  |  | 15.0 |  |  | 4.3 |
Benefit payments(6) |  | (27.5) |  |  | (18.5) |  |  | (59.4) |  |  | (1.2) |  |  | (57.9) |  |  | (12.3) |
December 31, 2022 balance at original discount rate |  | 581.9 |  |  | 401.0 |  |  | 805.2 |  |  | 98.6 |  |  | 537.1 |  |  | 113.4 |
Effect of changes in discount rate assumptions |  | (88.3) |  |  | (54.0) |  |  | 62.3 |  |  | (19.2) |  |  | (105.4) |  |  | (10.1) |
Balance at December 31, 2022 |  | 493.6 |  |  | 347.0 |  |  | 867.5 |  |  | 79.4 |  |  | 431.7 |  |  | 103.3 |
Net liability for future policy benefits |  | 278.4 |  |  | 112.2 |  |  | 799.3 |  |  | 49.6 |  |  | 264.4 |  |  | 103.3 |
Less: Reinsurance recoverable |  | (63.1) |  |  | (15.3) |  |  | (0.8) |  |  | — |  |  | (3.4) |  |  | (3.2) |
Net liability for future policy benefits, after reinsurance recoverable |  | 215.3 |  |  | 96.9 |  |  | 798.5 |  |  | 49.6 |  |  | 261.0 |  |  | 100.1 |
Impact of flooring on net liability for future policy benefits |  | 1.1 |  |  | 0.2 |  |  | — |  |  | — |  |  | — |  |  | — |
Net liability for future policy benefits at December 31, 2022 |  | $ | 216.4 |  |  | $ | 97.1 |  |  | $ | 798.5 |  |  | $ | 49.6 |  |  | $ | 261.0 |  |  | $ | 100.1 |
(1) Experience Life contains both whole life and term elements. (2) As of December 31, 2022, the net LFPB for Supplemental Health was $101.8 million for cancer, $21.8 million for accident, $23.1 million for disability and $114.3 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. (7) Whole Life, Term Life, and Supplemental Health beginning balance at January 1, 2022 includes reserves acquired from Madison National Life Insurance Company, Inc. on January 1, 2022. The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets:
($ in millions) |  | December 31, 2024 |  | December 31, 2023
Whole life |  | $ | 275.2 |  |  | $ | 298.8 |
Term life |  | 131.8 |  |  | 130.2 |
Experience life |  | 746.6 |  |  | 811.3
Limited-pay whole life |  | 52.1 |  |  | 57.4 |
Supplemental health |  | 203.5 |  |  | 245.6 |
SPIA (life contingent) |  | 97.3 |  |  | 104.2 |
Limited-pay whole life DPL |  | 5.2 |  |  | 4.1 |
SPIA (life contingent) DPL |  | 1.5 |  |  | 1.3 |
Reconciling items(1) |  | 109.6 |  |  | 108.9 |
Total |  | $ | 1,622.8 |  |  | $ | 1,761.8 |
(1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves. The following tables summarize the amount of revenue from gross premiums or assessment and interest expense related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss):
($ in millions) |  |  |  | Gross premiums or assessments
|  |  |  | Year Ended December 31,
|  |  |  |  |  | 2024 |  | 2023
Whole life |  |  |  |  |  | $ | 28.1 |  |  | $ | 28.1 |
Term life |  |  |  |  |  | 45.9 |  |  | 45.2 |
Experience life |  |  |  |  |  | 30.6 |  |  | 32.1 |
Limited-pay whole life |  |  |  |  |  | 7.2 |  |  | 7.2 |
Supplemental health |  |  |  |  |  | 121.6 |  |  | 120.3 |
SPIA (life contingent) |  |  |  |  |  | 3.6 |  |  | 6.1 |
Total |  |  |  |  |  | $ | 237.0 |  |  | $ | 239.0 |
($ in millions) |  |  |  | Interest expense
|  |  |  | Year Ended December 31,
|  |  |  |  |  | 2024 |  | 2023
Whole life |  |  |  |  |  | $ | 12.2 |  |  | $ | 11.8 |
Term life |  |  |  |  |  | 5.3 |  |  | 4.8 |
Experience life |  |  |  |  |  | 43.0 |  |  | 43.7 |
Limited-pay whole life |  |  |  |  |  | 2.8 |  |  | 2.6 |
Supplemental health |  |  |  |  |  | 7.6 |  |  | 8.4 |
SPIA (life contingent) |  |  |  |  |  | 4.3 |  |  | 4.4 |
Total |  |  |  |  |  | $ | 75.2 |  |  | $ | 75.7 |
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts:
($ in millions) |  | As of December 31, 2024 |  | As of December 31, 2023
|  | Undiscounted |  | Discounted |  | Undiscounted |  | Discounted
Whole life |  |  |  |  |  |  |  |
Expected future gross premiums |  | $ | 524.0 |  |  | $ | 350.5 |  |  | $ | 478.8 |  |  | $ | 325.0 |
Expected future benefits and expenses |  | 1,272.9 |  |  | 617.4 |  |  | 1,152.8 |  |  | 592.1 |
Term life |  |  |  |  |  |  |  |
Expected future gross premiums |  | 712.1 |  |  | 464.2 |  |  | 689.0 |  |  | 449.4 |
Expected future benefits and expenses |  | 736.2 |  |  | 433.2 |  |  | 682.7 |  |  | 405.4 |
Experience Life |  |  |  |  |  |  |  |
Expected future gross premiums |  | 497.8 |  |  | 279.3 |  |  | 530.0 |  |  | 296.1 |
Expected future benefits and expenses |  | 1,639.0 |  |  | 782.8 |  |  | 1,703.1 |  |  | 797.5 |
Limited-pay whole life |  |  |  |  |  |  |  |
Expected future gross premiums |  | 73.6 |  |  | 54.7 |  |  | 64.7 |  |  | 49.1 |
Expected future benefits and expenses |  | 307.2 |  |  | 114.3 |  |  | 244.9 |  |  | 105.6 |
Supplemental health |  |  |  |  |  |  |  |
Expected future gross premiums |  | 1,595.3 |  |  | 1,165.4 |  |  | 1,624.1 |  |  | 1,192.5 |
Expected future benefits and expenses |  | 684.6 |  |  | 482.8 |  |  | 719.4 |  |  | 517.9 |
SPIA (life contingent) |  |  |  |  |  |  |  |
Expected future gross premiums |  | — |  |  | — |  |  | — |  |  | — |
Expected future benefits and expenses |  | 150.7 |  |  | 107.3 |  |  | 156.1 |  |  | 111.4 |
For the year ended December 31, 2024 and 2023, net premiums exceeded gross premiums for several cohorts in the Whole Life and Term Life product lines. This resulted in an immaterial change to current period benefit expense for both years. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB:
|  | December 31, 2024
|  | Whole Life |  | Term Life |  | Experience Life |  | Limited-Pay Whole Life |  | Supplemental Health |  | SPIA (life contingent)
Mortality / Morbidity |  |  |  |  |  |  |  |  |  |  |  |
Actual experience |  | 0.7 | % |  | 0.1% - 0.5% |  | 1.8 | % |  | 0.1 | % |  | 31.8 | % |  | N.M.
Expected experience |  | 0.8 | % |  | 0.1% - 1.7% |  | 1.7 | % |  | 0.3 | % |  | 26.3 | % |  | N.M.
Lapses |  |  |  |  |  |  |  |  |  |  |  |
Actual experience |  | 3.0 | % |  | 3.9% - 38.2% |  | 2.9 | % |  | 4.0 | % |  | 9.7 | % |  | N.M.
Expected experience |  | 4.5 | % |  | 5.6% - 21.9% |  | 3.1 | % |  | 4.8 | % |  | 9.9 | % |  | N.M.
|  | December 31, 2023
|  | Whole Life |  | Term Life |  | Experience Life |  | Limited-Pay Whole Life |  | Supplemental Health |  | SPIA (life contingent)
Mortality / Morbidity |  |  |  |  |  |  |  |  |  |  |  |
Actual experience |  | 0.7 | % |  | 0.1% - 0.7% |  | 1.6 | % |  | 0.2 | % |  | 32.4 | % |  | N.M.
Expected experience |  | 0.7 | % |  | 0.1% - 2.3% |  | 1.6 | % |  | 0.3 | % |  | 26.1 | % |  | N.M.
Lapses |  |  |  |  |  |  |  |  |  |  |  |
Actual experience |  | 3.4 | % |  | 5.3% - 13.0% |  | 3.2 | % |  | 4.2 | % |  | 8.8 | % |  | N.M.
Expected experience |  | 4.8 | % |  | 5.8% - 36.8% |  | 3.1 | % |  | 5.4 | % |  | 9.3 | % |  | N.M.
The following table provides the weighted-average durations of LFPB, in years:
|  | As of December 31,
|  | 2024 |  | 2023
Whole life |  | 20.0 |  | 18.0
Term life |  | 16.0 |  | 16.7
Experience life |  | 10.0 |  | 10.3
Limited-pay whole life |  | 25.0 |  | 22.1
Supplemental health |  | 11.3 |  | 10.7
SPIA (life contingent) |  | 8.0 |  | 7.6
The following table provides ranges of the weighted-average interest rates for LFPB:
|  | As of December 31,
|  | 2024 |  | 2023
Whole life |  |  |  |
Interest accretion rate |  | 1.7% - 4.9% |  | 1.7% - 4.9%
Current discount rate |  | 5.0% - 5.7% |  | 4.4% - 5.0%
Term life |  |  |  |
Interest accretion rate |  | 4.2% - 4.2% |  | 4.2% -4.3%
Current discount rate |  | 5.5% - 5.6% |  | 4.9% - 5.0%
Experience life |  |  |  |
Interest accretion rate |  | 6.1 | % |  | 6.1 | %
Current discount rate |  | 5.6 | % |  | 5.0 | %
Limited-pay whole life |  |  |  |
Interest accretion rate |  | 4.0 | % |  | 4.0 | %
Current discount rate |  | 5.8 | % |  | 5.1 | %
Supplemental health |  |  |  |
Interest accretion rate |  | 1.7% - 2.8% |  | 1.7% - 2.7%
Current discount rate |  | 4.6% - 5.6% |  | 5.0% - 5.2%
SPIA (life contingent) |  |  |  |
Interest accretion rate |  | 1.7% - 4.1% |  | 1.7% - 4.1%
Current discount rate |  | 5.4% - 5.5% |  | 4.9% - 4.9%
Liability for Policyholders' Account Balances The Company recognizes a liability for policyholders' account balances. The following tables summarize balances of and changes in policyholders' account balances:
($ in millions) |  | Year Ended December 31, 2024
|  | Indexed Universal Life |  | Experience Life |  | Fixed Account Annuities |  | Fixed Indexed Account Annuities |  | SPIA (non-life contingent)
Balance at January 1, 2024 |  | $ | 57.8 |  |  | $ | 61.2 |  |  | $ | 4,556.0 |  |  | $ | 449.0 |  |  | $ | 32.6 |
Premiums received(1) |  | $ | 17.8 |  |  | $ | (0.8) |  |  | $ | 203.5 |  |  | $ | 15.9 |  |  | $ | 1.9 |
Surrenders and withdrawals(2) |  | (2.2) |  |  | (3.7) |  |  | (388.6) |  |  | (51.2) |  |  | (1.3) |
Benefit payments(3) |  | — |  |  | (1.6) |  |  | (69.2) |  |  | (4.2) |  |  | (5.5) |
Net transfers from (to) separate account |  | (0.2) |  |  | — |  |  | 23.3 |  |  | (2.2) |  |  | — |
Interest credited(4) |  | 3.9 |  |  | 2.9 |  |  | 167.7 |  |  | 16.1 |  |  | 0.9 |
Other |  | (4.2) |  |  | — |  |  | 15.7 |  |  | (13.9) |  |  | — |
Balance at December 31, 2024 |  | $ | 72.9 |  |  | $ | 58.0 |  |  | $ | 4,508.4 |  |  | $ | 409.5 |  |  | $ | 28.6 |
Weighted-average crediting rate |  | 6.1 | % |  | 5.0 | % |  | 3.8 | % |  | 3.8 | % |  | 3.1 | %
Net amount at risk(5) |  | $ | — |  |  | $ | — |  |  | $ | 29.4 |  |  | $ | — |  |  | $ | — |
Cash surrender value |  | $ | 54.5 |  |  | $ | 57.4 |  |  | $ | 4,452.6 |  |  | $ | 402.0 |  |  | $ | 28.3 |
($ in millions) |  | Year Ended December 31, 2023
|  | Indexed Universal Life |  | Experience Life |  | Fixed Account Annuities |  | Fixed Indexed Account Annuities |  | SPIA (non-life contingent)
Balance at January 1, 2023 |  | $ | 47.6 |  |  | $ | 64.3 |  |  | $ | 4,591.1 |  |  | $ | 510.3 |  |  | $ | 34.4 |
Premiums received(1) |  | $ | 13.6 |  |  | $ | (0.8) |  |  | $ | 236.3 |  |  | $ | 20.1 |  |  | $ | 3.4 |
Surrenders and withdrawals(2) |  | (1.1) |  |  | (3.7) |  |  | (391.8) |  |  | (67.0) |  |  | (0.4) |
Benefit payments(3) |  | — |  |  | (1.7) |  |  | (75.1) |  |  | (3.1) |  |  | (5.9) |
Net transfers from (to) separate account |  | (0.6) |  |  | — |  |  | 23.7 |  |  | (8.2) |  |  | — |
Interest credited(4) |  | 1.5 |  |  | 3.1 |  |  | 162.0 |  |  | 5.3 |  |  | 1.0 |
Other |  | (3.2) |  |  | — |  |  | 9.8 |  |  | (8.4) |  |  | 0.1 |
Balance at December 31, 2023 |  | $ | 57.8 |  |  | $ | 61.2 |  |  | $ | 4,556.0 |  |  | $ | 449.0 |  |  | $ | 32.6 |
Weighted-average crediting rate |  | 2.8 | % |  | 5.0 | % |  | 3.6 | % |  | 1.1 | % |  | 3.1 | %
Net amount at risk(5) |  | $ | — |  |  | $ | — |  |  | $ | 35.9 |  |  | $ | — |  |  | $ | — |
Cash surrender value |  | $ | 40.5 |  |  | $ | 60.5 |  |  | $ | 4,507.5 |  |  | $ | 439.9 |  |  | $ | 32.3 |
(1) Premiums received represents premiums collected from policyholder during the period of in force business (2) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (3) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (4) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (5) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets:
($ in millions) |  | December 31, 2024 |  | December 31, 2023
Indexed universal life |  | $ | 72.9 |  |  | $ | 57.8 |
Experience Life |  | 58.0 |  |  | 61.2 |
Fixed account annuities |  | 4,508.4 |  |  | 4,556.0 |
Fixed indexed account annuities |  | 409.5 |  |  | 449.0 |
SPIA (non-life contingent) |  | 28.6 |  |  | 32.6 |
Reconciling items(1) |  | 22.9 |  |  | 30.4 |
Total |  | $ | 5,100.3 |  |  | $ | 5,187.0 |
(1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs. The following tables present the gross account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:
($ in millions) |  | December 31, 2024
|  | At Guaranteed Minimum |  | 1-50 Basis Points Above |  | 51-150 Basis Points Above |  | Greater Than 150 Basis Points Above |  | Total(1)
Guaranteed minimum crediting rates: |  |  |  |  |  |  |  |  |  |
Less than 2% |  | $ | 15.9 |  |  | $ | 77.3 |  |  | $ | 400.4 |  |  | $ | 304.0 |  |  | $ | 797.6 |
Equal to 2% but less than 3% |  | 94.5 |  |  | 122.2 |  |  | 97.9 |  |  | 134.8 |  |  | 449.4 |
Equal to 3% but less than 4% |  | 545.6 |  |  | 43.3 |  |  | 13.3 |  |  | 51.2 |  |  | 653.4 |
Equal to 4% but less than 5% |  | 2,600.0 |  |  | — |  |  | — |  |  | — |  |  | 2,600.0 |
5% or higher |  | 81.8 |  |  | — |  |  | — |  |  | — |  |  | 81.8 |
Total |  | $ | 3,337.8 |  |  | $ | 242.8 |  |  | $ | 511.6 |  |  | $ | 490.0 |  |  | $ | 4,582.2 |
($ in millions) |  | December 31, 2023
|  | At Guaranteed Minimum |  | 1-50 Basis Points Above |  | 51-150 Basis Points Above |  | Greater Than 150 Basis Points Above |  | Total(1)
Guaranteed minimum crediting rates: |  |  |  |  |  |  |  |  |  |
Less than 2% |  | $ | 36.7 |  |  | $ | 159.8 |  |  | $ | 489.4 |  |  | $ | 200.2 |  |  | $ | 886.1 |
Equal to 2% but less than 3% |  | 162.9 |  |  | 77.9 |  |  | 65.8 |  |  | 76.1 |  |  | 382.7 |
Equal to 3% but less than 4% |  | 571.3 |  |  | 36.9 |  |  | 0.7 |  |  | — |  |  | 609.0 |
Equal to 4% but less than 5% |  | 2,670.5 |  |  | — |  |  | — |  |  | — |  |  | 2,670.5 |
5% or higher |  | 86.9 |  |  | — |  |  | — |  |  | — |  |  | 86.9 |
Total |  | $ | 3,528.3 |  |  | $ | 274.6 |  |  | $ | 555.9 |  |  | $ | 276.3 |  |  | $ | 4,635.2 |
(1) Excludes products not containing a fixed guaranteed minimum crediting rate. Separate Account Liabilities Separate account assets and liabilities consist of investment accounts established and maintained by the Company for certain variable contracts. Some of these variable contracts include minimum guarantees such as GMDBs that guarantee a minimum payment to the policyholder in the event of death. The assets that support variable contracts are measured at fair value and are reported as separate account assets on the Consolidated Balance Sheets. An equivalent amount is reported as separate account liabilities. MRB assets and liabilities for minimum guarantees are valued and presented separately from separate account assets and separate account liabilities. MRBs are discussed further in the market risk benefits section of this Note to the Consolidated Financial Statements. Policy charges assessed against the policyholders for mortality, administration and other services are included in the life premiums and contract charges line item on the Consolidated Statements of Operations and Comprehensive Income (Loss). The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets(1):
($ in millions) |  | Retirement Services
|  | Variable Account Annuities
|  | December 31, 2024 |  | December 31, 2023
Balance, beginning of year |  | $ | 3,294.1 |  |  | $ | 2,792.3 |
Deposits |  | 266.2 |  |  | 234.2 |
Withdrawals |  | (290.3) |  |  | (213.4) |
Net transfers |  | (21.1) |  |  | (15.5) |
Fees and charges |  | (53.3) |  |  | (37.6) |
Market appreciation (depreciation) |  | 513.2 |  |  | 541.5 |
Other |  | — |  |  | (7.4) |
Balance, end of period |  | $ | 3,708.8 |  |  | $ | 3,294.1 |
(1) The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that 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. Market Risk Benefits The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the year ended December 31, 2024 and 2023, respectively:
($ in millions) |  |  |  | Year Ended December 31,
|  |  |  |  |  | 2024 |  | 2023
Balance, beginning of period |  |  |  |  |  | $ | (3.9) |  |  | $ | 0.3 |
Balance, beginning of period, before effects of changes in the instrument-specific credit risk |  |  |  |  |  | (4.5) |  |  | — |
Changes in market risk benefits(1) |  |  |  |  |  | (2.9) |  |  | (4.5) |
Balance, end of period(2) |  |  |  |  |  | $ | (7.4) |  |  | $ | (4.5) |
Effect of changes in the instrument-specific credit risk |  |  |  |  |  | 0.6 |  |  | 0.6 |
Balance, end of period |  |  |  |  |  | $ | (6.8) |  |  | $ | (3.9) |
Net amount at risk(3) |  |  |  |  |  | $ | 15.9 |  |  | $ | 20.5 |
Weighted-average attained age of contract holders |  |  |  |  |  | 62 |  | 62
(1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets.
($ in millions) |  | As of December 31, 2024 |  | As of December 31, 2023
|  | (Asset) |  | Liability |  | Net |  | (Asset) |  | Liability |  | Net
Deferred variable annuities |  | $ | (8.8) |  |  | $ | 2.0 |  |  | $ | (6.8) |  |  | $ | (6.7) |  |  | $ | 2.8 |  |  | $ | (3.9) |
DAC and Deferred Sales Inducements The following tables roll-forward DAC for the periods indicated:
($ in millions) |  | Year Ended December 31, 2024
|  | Whole Life |  | Term Life |  | Experience Life |  | Limited-Pay Whole Life |  | Indexed Universal Life |  | Supplemental Health |  | Total Annuities
Balance, beginning of period |  | $ | 22.3 |  |  | $ | 32.6 |  |  | $ | 5.7 |  |  | $ | 7.4 |  |  | $ | 16.8 |  |  | $ | 8.2 |  |  | $ | 214.0 |
Capitalizations |  | 3.0 |  |  | 5.1 |  |  | 0.2 |  |  | 1.1 |  | — |  | 3.6 |  | — |  | 3.4 |  | — |  | 15.8 |
Amortization expense |  | (1.3) |  |  | (3.5) |  |  | (0.4) |  |  | (0.4) |  | — |  | (1.1) |  | — |  | (0.8) |  | — |  | (16.2) |
Experience adjustment |  | (0.2) |  |  | — |  |  | — |  |  | (0.1) |  | — |  | (0.1) |  | — |  | (0.2) |  | — |  | (2.2) |
Balance, end of period |  | $ | 23.8 |  |  | $ | 34.2 |  |  | $ | 5.5 |  |  | $ | 8.0 |  |  | $ | 19.2 |  |  | $ | 10.6 |  |  | $ | 211.4 |
($ in millions) |  | Year Ended December 31, 2023
|  | Whole Life |  | Term Life |  | Experience Life |  | Limited-Pay Whole Life |  | Indexed Universal Life |  | Supplemental Health |  | Total Annuities
Balance, beginning of period |  | $ | 20.9 |  |  | $ | 30.0 |  |  | $ | 5.8 |  |  | $ | 6.7 |  |  | $ | 15.4 |  |  | $ | 6.2 |  |  | $ | 221.1 |
Capitalizations |  | 2.7 |  |  | 5.8 |  |  | 0.3 |  |  | 1.1 |  |  | 2.5 |  |  | 2.9 |  |  | 15.0 |
Amortization expense |  | (1.2) |  |  | (3.1) |  |  | (0.4) |  |  | (0.3) |  |  | (1.0) |  |  | (0.6) |  |  | (14.7) |
Experience adjustment |  | (0.1) |  |  | (0.1) |  |  | — |  |  | (0.1) |  |  | (0.1) |  |  | (0.3) |  |  | (7.4) |
Balance, end of period |  | $ | 22.3 |  |  | $ | 32.6 |  |  | $ | 5.7 |  |  | $ | 7.4 |  |  | $ | 16.8 |  |  | $ | 8.2 |  |  | $ | 214.0 |
($ in millions) |  | Year Ended December 31, 2022
|  | Whole Life |  | Term Life |  | Experience Life |  | Limited-Pay Whole Life |  | Indexed Universal Life |  | Supplemental Health |  | Total Annuities
Balance, beginning of year |  | $ | 19.1 |  |  | $ | 27.5 |  |  | $ | 6.0 |  |  | $ | 5.6 |  |  | $ | 13.7 |  |  | $ | 4.9 |  |  | $ | 223.3 |
Capitalizations |  | 3.0 |  |  | 5.0 |  |  | 0.2 |  |  | 1.4 |  |  | 2.5 |  |  | 1.8 |  |  | 15.5 |
Amortization expense |  | (1.2) |  |  | (2.5) |  |  | (0.4) |  |  | (0.3) |  |  | (0.8) |  |  | (0.5) |  |  | (15.8) |
Experience adjustment |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1.9) |
Balance, end of year |  | $ | 20.9 |  |  | $ | 30.0 |  |  | $ | 5.8 |  |  | $ | 6.7 |  |  | $ | 15.4 |  |  | $ | 6.2 |  |  | $ | 221.1 |
The following table presents a reconciliation of DAC to the Consolidated Balance Sheets:
($ in millions) |  | December 31, 2024 |  | December 31, 2023
Whole life |  | $ | 23.8 |  |  | $ | 22.3 |
Term life |  | 34.2 |  |  | 32.6 |
Experience life |  | 5.5 |  |  | 5.7 |
Limited pay whole life |  | 8.0 |  |  | 7.4 |
Indexed universal life |  | 19.2 |  |  | 16.8 |
Supplemental health |  | 10.6 |  |  | 8.2 |
Total annuities |  | 211.4 |  |  | 214.0 |
Reconciling item(1) |  | 34.5 |  |  | 29.3 |
Total |  | $ | 347.2 |  |  | $ | 336.3 |
(1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. The assumptions used to amortize DAC were consistent with the assumptions used to estimate LFPB for traditional and limited-payment contracts. The underlying assumptions for DAC and LFPB were updated at the same time. Quarterly, the Company conducts a review of all significant assumptions. In the third quarter of 2023, the annuity lapse assumption was revised upward to reflect emerging experience. In the fourth quarter of 2023, the annuity mortality and annuitization assumptions and the life insurance mortality and lapse assumptions were revised as part of the annual assumption update process. The following table rolls-forward the deferred sales inducements balance as of and for the years ended December 31, 2024 and 2023:
($ in millions) |  | Year Ended December 31, 2024 |  | Year Ended December 31, 2023
Balance, beginning of period |  | $ | 14.1 |  |  | $ | 15.9 |
Capitalizations |  | — |  |  | — |
Amortization expense |  | (1.0) |  |  | (1.0) |
Experience adjustment |  | (0.3) |  |  | (0.8) |
Balance, end of period |  | $ | 12.8 |  |  | $ | 14.1 |
Deferred sales inducements is included in Other assets in the Consolidated Balance Sheets.

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- Definition The entire disclosure for long duration contracts. This may include the information pertinent to an understanding of the types of traditional and nontraditional insurance and investment contracts sold and serviced, including the nature and amount of estimated guaranteed obligations pertaining to such contracts and the assumptions underlying such estimated amounts, hedging strategies, and sales inducements offered. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (u) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480016/944-40-65-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944/tableOfContent + Details
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