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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule 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, 2024, 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, 2024
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities						$	755.8					$	755.8					$	—					$	755.8					$	—
Other, including U.S. Treasury securities						357.6						357.6						24.7						332.9						—
Municipal bonds						1,150.8						1,150.8						—						1,075.9						74.9
Foreign government bonds						13.1						13.1						—						13.1						—
Corporate bonds						1,782.4						1,782.4						7.7						1,423.4						351.3
Other asset-backed securities						1,328.2						1,328.2						—						1,254.5						73.7
Total fixed maturity securities						5,387.9						5,387.9						32.4						4,855.6						499.9
Equity securities						66.5						66.5						1.4						60.9						4.2
Limited partnership interests						28.9						28.9						—						—						28.9
Short-term investments						101.1						101.1						101.1						—						—
Other investments						18.5						18.5						—						18.5						—
Totals						$	5,602.9					$	5,602.9					$	134.9					$	4,935.0					$	533.0
Separate Account variable annuity assets(1)						$	3,708.8					$	3,708.8					$	3,708.8					$	—					$	—
Financial Liabilities(2)						$	79.6					$	79.6					$	—					$	4.1					$	75.5
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

(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 & Limited Partnership Interests						Total
Beginning balance, January 1, 2024						$	74.0					$	342.5					$	97.5					$	514.0					$	4.5					$	518.5					$	82.4
Transfers into Level 3(3)						—						11.8						8.0						19.8						28.9						48.7						—
Transfers out of Level 3(3)						—						(8.4)						(4.0)						(12.4)						—						(12.4)						—
Total gains or losses
Net investment gains (losses) included in net income						—						—						0.3						0.3						0.6						0.9						—
Net investment (gains) losses included in net income related to financial liabilities						—						—						—						—						—						—						5.4
Net unrealized investment gains (losses) included in OCI						(2.1)						5.7						0.1						3.7						—						3.7						—
Purchases						4.2						81.2						1.7						87.1						1.2						88.3						—
Issuances						—						—						—						—						—						—						5.4
Sales						—						(46.4)						—						(46.4)						—						(46.4)						—
Settlements						—						—						—						—						—						—						—
Paydowns, maturities and distributions						(1.2)						(35.1)						(29.9)						(66.2)						(2.1)						(68.3)						(17.7)
Ending balance, December 31, 2024						$	74.9					$	351.3					$	73.7					$	499.9					$	33.1					$	533.0					$	75.5
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

(1)    Represents embedded derivatives, all related to the Company's FIA products, as well as net MRBs 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, 2024 and 2023 were attributable to changes in the availability of observable market information for individual fixed maturity securities, limited partnerships and short-term investments. In addition, during the fourth quarter of 2024, the Company transferred in two limited partnership investments that are carried at fair value using fair value option accounting. 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)
						Total						Internal						External
December 31, 2024
Financial Assets
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities						$	—					$	—					$	—
Municipal bonds						74.9						—						74.9
Corporate bonds						351.3						199.3						152.0
Other asset-backed securities						73.7						—						73.7
Total fixed maturity securities						499.9						199.3						300.6
Equity securities						4.2						—						4.2
Limited partnership interests						28.9						—						28.9
Totals						$	533.0					$	199.3					$	333.7
Financial Liabilities(1)						$	75.5					$	75.5					$	—
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					$	—

(1) Represents embedded derivatives, all related to the Company's FIA 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, 2024

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

$

199.3

discounted cash flow

yield

3.9% - 10.6%

Decrease

discounted cash flow

option adjusted spread

242 bps - 768 bps

Decrease

Financial Liabilities

Derivatives embedded in fixed indexed annuity products

$

82.3

discounted cash flow

lapse rate

6.4%

Decrease

mortality multiplier(2)

67.0%

Decrease

option budget

0.9% - 3.8%

Increase

non-performance adjustment(3)

5.0%

Decrease

Net MRBs

$

(6.8)

discounted cash flow

lapse rate

6.4%

Decrease

mortality multiplier(2)

67.0%

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, 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.

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.

Schedule of Fair Value Assets and Liabilities Measured on Nonrecurring Basis

The following table presents the carrying amount and fair value of the Company’s financial assets and financial liabilities not carried at fair value and the level within the fair value hierarchy at which such financial assets and liabilities are categorized.

($ in millions)						Carrying Amount						Fair Value						Fair Value Measurements at Reporting Date Using
																		Level 1						Level 2						Level 3
December 31, 2024
Financial Assets
Other investments						$	221.0					$	224.3					$	—					$	37.0					$	187.3
Deposit asset on reinsurance						2,434.3						2,121.9						—						—						2,121.9
Financial Liabilities
Policyholders' account balances						5,020.2						4,710.1						—						—						4,710.1
Other policyholder funds						995.7						995.7						—						992.9						2.8
Reverse repurchase agreement						12.0						12.4						—						12.4						—
Long-term debt						547.0						575.1						—						575.1						—
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						—

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Carrying value, fair value and fair value hierarchy of financial assets and financial liabilities not carried at fair value, are measured on a nonrecurring basis, and fair value disclosure is required.

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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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).

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