INVESTMENT BORROWINGS

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 from the FHLB on a collateralized basis. As of June 30, 2026, collateralized borrowings from the FHLB totaled $2.9 billion and are classified as investment borrowings in the accompanying consolidated balance sheet. The borrowings are collateralized by investments with an estimated fair value of $3.6 billion at June 30, 2026, 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 proceeds from these borrowings were used to purchase matched variable rate fixed maturity securities with similar durations.

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 June 30, 2026, the carrying value of the FHLB common stock was $128.5 million.

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

June 30, 2026

10.0

November 2026

Variable rate - 4.094%

75.0

December 2026

Variable rate - 4.092%

75.0

January 2027

Variable rate - 4.046%

50.0

January 2027

Variable rate - 4.125%

50.0

January 2027

Variable rate - 4.150%

100.0

February 2027

Variable rate - 4.095%

50.0

April 2027

Variable rate - 4.008%

50.0

May 2027

Variable rate - 4.018%

100.0

June 2027

Variable rate - 3.990%

10.0

June 2027

Variable rate - 4.213%

15.5

July 2027

Variable rate - 4.177%

50.0

July 2027

Variable rate - 4.378%

12.5

September 2027

Variable rate - 4.146%

57.7

November 2027

Variable rate - 4.142%

100.0

December 2027

Variable rate - 4.138%

100.0

December 2027

Variable rate - 4.135%

50.0

December 2027

Variable rate - 4.187%

75.0

January 2028

Variable rate - 4.103%

134.5

January 2028

Variable rate - 4.093%

50.0

January 2028

Variable rate - 4.165%

50.0

January 2028

Variable rate - 4.178%

100.0

January 2028

Variable rate - 4.110%

100.0

February 2028

Variable rate - 4.160%

21.0

February 2028

Variable rate - 4.098%

22.0

February 2028

Variable rate - 4.149%

100.0

February 2028

Variable rate - 4.115%

27.0

July 2028

Variable rate - 4.207%

15.0

July 2028

Variable rate - 4.000%

35.0

August 2028

Variable rate - 4.010%

12.5

September 2028

Variable rate - 4.242%

42.2

May 2029

Variable rate - 4.263%

50.0

August 2029

Variable rate - 4.297%

50.0

April 2030

Variable rate - 4.320%

50.0

May 2030

Variable rate - 4.328%

50.0

May 2030

Variable rate - 4.280%

100.0

May 2030

Variable rate - 4.289%

125.0

September 2030

Variable rate - 4.120%

50.0

January 2031

Variable rate- 4.178%

50.0

January 2031

Variable rate - 4.160%

100.0

January 2031

Variable rate - 4.179%

150.0

February 2031

Variable rate - 4.246%

100.0

February 2031

Variable rate - 4.240%

50.0

April 2031

Variable rate - 4.238%


50.0		April 2031	Variable rate - 4.228%
50.0		April 2031	Variable rate - 4.253%
100.0		April 2031	Variable rate - 4.232%
5.0		May 2031	Variable rate - 4.057%
21.8		May 2031	Variable rate - 4.200%
50.0		May 2031	Variable rate - 4.142%
$	2,941.7

Generally, these borrowings are pre-payable. At June 30, 2026, the aggregate prepayment penalty on such outstanding borrowings was not material.

Interest expense of $56.3 million and $53.7 million during the six months ended June 30, 2026 and 2025, respectively, was recognized related to total borrowings from the FHLB, reflecting higher average investment borrowings partially offset by lower interest rates on the variable rate investment borrowings during the six months ended June 30, 2026.