v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company conducts and manages its business through four reporting segments. The three reporting segments representing the major lines of business are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). The Company does not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those reporting segments, but classifies those items in the fourth reporting segment, Corporate & Other. Corporate & Other includes corporate debt service, net investment gains (losses) and certain public company expenses, as well as corporate debt retirement costs, when applicable. In addition to these transactions, Corporate & Other also includes legacy commercial claims.
The accounting policies of the reporting segments are the same as those described in Note 1-Basis of Presentation and Significant Accounting Policies. Expense allocations are based on certain assumptions and estimates primarily related to direct cost, revenue and activity; methodologies are applied consistently. Stated segment operating results would change if different methods were applied.
The Company’s Chief Operating Officer is the chief operating decision maker (CODM), responsible for reviewing financial performance and making decisions regarding the allocation of resources for the reporting segments. The Company measures and analyzes segment performance based on core earnings which differs from total income as presented in our consolidated statements of operations due to excluding the after-tax impact of net investment gains (losses), discontinued operations, the after-tax impact of goodwill and intangible asset impairments, other non-recurring or infrequent items and the cumulative effect of changes in accounting principles when applicable, and for the period ended June 30, 2025, the impacts of the immaterial correction of the prior period error discussed in Note 1. We believe core earnings is a better performance measure and indicator of the profitability and underlying trends in our business. The CODM considers actual-to-budget variances in core earnings on a monthly basis when making decisions about allocating capital and personnel to segments and evaluating product pricing.
Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the three months ended June 30, 2025, is as follows:
Property & Casualty
Life & Retirement
Supplemental & Group Benefits
Corporate & Other*
Totals
($ in millions)
Net premiums and contract charges earned$197.3 $39.6 $65.7 $— $302.6 
Net investment income(1)
14.9 97.2 10.6 (1.6)121.1 
Other segment income
0.7 4.9 (1.9)0.5 4.2 
Total segment revenues
$212.9 $141.7 $74.4 $(1.1)$427.9 

Benefits and claims expenses
   (excluding catastrophe losses)
$89.6 $25.2 $22.9 $— $137.7 
Catastrophe losses
29.7 — — — 29.7 
Loss adjustment expenses
17.1 — — — 17.1 
Interest credited
— 51.5 1.2 — 52.7 
Operating & admin expenses
33.4 24.0 21.1 3.7 82.2 
Commissions expense
16.5 9.8 11.2 — 37.5 
Taxes, licenses and fees
6.1 1.4 1.7 0.1 9.3 
Deferred policy acquisition costs
(24.7)(6.1)(1.2)— (32.0)
Deferred policy acquisition
   cost amortization
23.9 5.7 0.4 — 29.9 
Interest expense
— — — 8.6 8.6 
Total segment expenses
$191.6 $111.5 $57.3 $12.4 $372.8 
Pretax profit (loss)
$21.3 $30.2 $17.1 $(13.5)$55.1 
Income tax expense
4.8 5.6 3.7 (3.2)10.9 
Segment profit (loss) (Core earnings)
16.5 24.6 13.4 (10.3)44.2 
Net investment losses (after-tax) — — — 4.7 4.7 
Non-core income adjustments (after-tax)(1)
— 4.6 5.5 — 10.1 
Net income
$16.5 $20.0 $7.9 $(15.0)$29.4 
*-Corporate & Other is net of intersegment eliminations.
(1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.
Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the six months ended June 30, 2025, is as follows:
Property & Casualty
Life & Retirement
Supplemental & Group Benefits
Corporate & Other*
Totals
($ in millions)
Net premiums and contract charges earned$390.0 $78.1 $132.8 $— $600.9 
Net investment income(1)
26.6 186.2 20.0 4.1 236.9 
Other segment income
2.0 9.7 (3.0)1.0 9.7 
Total segment revenues
$418.6 $274.0 $149.8 $5.1 $847.5 

Benefits and claims expenses
   (excluding catastrophe losses)
$175.3 $61.8 $49.8 $— $286.9 
Catastrophe losses
46.1 — — — 46.1 
Loss adjustment expenses
33.4 — — — 33.4 
Interest credited
— 103.1 2.4 — 105.5 
Operating & admin expenses
66.8 47.9 38.5 6.0 159.2 
Commissions expense
33.4 19.6 22.5 — 75.5 
Taxes, licenses and fees
11.0 2.3 3.1 0.3 16.7 
Deferred policy acquisition costs
(49.0)(12.2)(2.4)— (63.6)
Deferred policy acquisition
   cost amortization
46.9 11.7 0.9 — 59.5 
Interest expense
— — — 17.5 17.5 
Total segment expenses
$363.9 $234.1 $114.8 $23.8 $736.6 
Pretax profit (loss)
$54.7 $39.9 $35.0 $(18.7)$110.9 
Income tax expense
11.4 7.3 7.6 (4.4)21.9 
Segment profit (loss) (Core earnings)
43.3 32.5 27.4 (14.3)89.0 
Net investment losses (after-tax) — — — 7.3 7.3 
Non-core income adjustments (after-tax)(1)
— 5.7 8.3 — 14.0 
Net income
$43.3 $26.8 $19.1 $(21.6)$67.6 
*-Corporate & Other is net of intersegment eliminations.
(1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.
Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the three months ended June 30, 2024, is as follows:
Property & Casualty
Life & Retirement
Supplemental & Group Benefits
Corporate & Other*
Totals
($ in millions)
Net premiums and contract charges earned$179.2 $38.0 $63.7 $— $280.9 
Net investment income(1)
9.5 88.9 10.5 (0.5)108.4 
Other segment income
0.6 4.6 (1.2)0.6 4.6 
Total segment revenues
$189.3 $131.5 $73.0 $0.1 $393.9 

Benefits and claims expenses
   (excluding catastrophe losses)
$93.8 $31.0 $23.5 $— $148.3 
Catastrophe losses
40.9 — — — 40.9 
Loss adjustment expenses
18.1 — — — 18.1 
Interest credited
— 52.6 1.2 — 53.8 
Operating & admin expenses
28.6 23.0 16.4 3.1 71.1 
Commissions expense
15.7 10.3 9.5 — 35.5 
Taxes, licenses and fees
4.9 0.9 1.5 0.3 7.6 
Deferred policy acquisition costs
(22.7)(7.5)(1.1)— (31.3)
Deferred policy acquisition
   cost amortization
20.5 6.1 0.4 — 27.0 
Interest expense
— — — 8.7 8.7 
Total segment expenses
$199.8 $116.4 $51.4 $12.1 $379.7 
Pretax profit (loss)
$(10.5)$15.0 $21.6 $(11.9)$14.2 
Income tax expense
(1.9)2.7 4.6 (2.5)2.9 
Segment profit (loss) (Core earnings)
(8.6)12.3 17.0 (9.4)11.3 
Net investment losses (after-tax) — — — (4.6)(4.6)
Change in MRB (after-tax)
— — — — — 
Intangible asset amortization (after-tax)
— — (2.9)— (2.9)
Net income
$(8.6)$12.3 $14.1 $(14.0)$3.8 
*-Corporate & Other is net of intersegment eliminations.
(1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.
Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the six months ended June 30, 2024, is as follows:
Property & Casualty
Life & Retirement
Supplemental & Group Benefits
Corporate & Other*
Totals
($ in millions)
Net premiums and contract charges earned$352.4 $75.8 $127.9 $— $556.1 
Net investment income(1)
21.8 174.7 18.3 (1.0)213.8 
Other segment income
1.3 9.4 (4.2)1.3 7.8 
Total segment revenues
$375.5 $259.9 $142.0 $0.3 $777.7 

Benefits and claims expenses
   (excluding catastrophe losses)
$184.9 $63.2 $45.3 $— $293.4 
Catastrophe losses
57.1 — — — 57.1 
Loss adjustment expenses
35.5 — — — 35.5 
Interest credited
— 104.4 2.3 — 106.7 
Operating & admin expenses
58.9 44.9 34.4 5.1 143.3 
Commissions expense
29.6 19.8 18.9 — 68.3 
Taxes, licenses and fees
9.6 1.9 3.0 0.5 15.0 
Deferred policy acquisition costs
(43.0)(14.2)(2.0)— (59.2)
Deferred policy acquisition
   cost amortization
40.3 12.7 1.0 — 54.0 
Interest expense
— — — 17.4 17.4 
Total segment expenses
$372.9 $232.7 $102.9 $23.0 $731.5 
Pretax profit (loss) $2.6 $27.1 $39.1 $(22.6)$46.2 
Income tax expense
0.6 4.9 8.3 (4.7)9.1 
Segment profit (loss) (Core earnings)
2.0 22.2 30.8 (17.9)37.1 
Net investment losses (after-tax) — — — (2.9)(2.9)
Change in MRB (after-tax)
— 1.8 — — 1.8 
Intangible asset amortization (after-tax)
— — (5.7)— (5.7)
Net income
$2.0 $24.0 $25.1 $(20.8)$30.3 
*-Corporate & Other is net of intersegment eliminations.
(1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

($ in millions)June 30, 2025December 31, 2024
Assets
Property & Casualty$1,335.2 $1,272.3 
Life & Retirement11,865.7 11,670.7 
Supplemental & Group Benefits1,370.2 1,377.6 
Corporate & Other193.5 191.0 
Intersegment eliminations(36.3)(23.8)
Total$14,728.3 $14,487.8