FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Financial Instruments Carried at Fair Value Categorized by Input Level

The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at June 30, 2026 is as follows (dollars in millions):


	Quoted prices in active markets for identical assets or liabilities (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Fixed maturities, available for sale:
Corporate securities	$	—	$	13,348.5	$	173.0	$	13,521.5

United States Treasury securities and obligations of United States government corporations and agencies	—		178.9		—		178.9
States and political subdivisions	—		2,903.1		—		2,903.1
Foreign governments	—		121.6		—		121.6
Asset-backed securities	—		1,903.8		43.1		1,946.9
Agency residential mortgage-backed securities	—		717.3		—		717.3
Non-agency residential mortgage-backed securities	—		1,397.4		28.8		1,426.2
Collateralized loan obligations	—		1,597.8		—		1,597.8
Commercial mortgage-backed securities	—		2,078.9		3.5		2,082.4
Total fixed maturities, available for sale	—		24,247.3		248.4		24,495.7
Equity securities - corporate securities	174.7		71.4		73.5		319.6
Trading securities:




Asset-backed securities	—		32.9		—		32.9
Agency residential mortgage-backed securities	—		78.4		—		78.4
Non-agency residential mortgage-backed securities	—		33.2		—		33.2
Collateralized loan obligations	—		9.3		—		9.3
Commercial mortgage-backed securities	—		104.8		—		104.8

Total trading securities	—		258.6		—		258.6
Investments held by variable interest entities - corporate securities	—		292.3		—		292.3
Other invested assets:
Derivatives	—		294.2		—		294.2
Residual tranches	—		—		4.5		4.5
Total other invested assets	—		294.2		4.5		298.7

Assets held in separate accounts	—		3.0		—		3.0
Total assets carried at fair value by category	$	174.7	$	25,166.8	$	326.4	$	25,667.9
Equity securities measured at net asset value							17.6
Total assets carried at fair value							$	25,685.5

Liabilities:
Market risk benefit liability	$	—	$	—	$	50.6	$	50.6
Embedded derivatives associated with fixed indexed annuity products	—		—		1,676.7		1,676.7
Total liabilities carried at fair value	$	—	$	—	$	1,727.3	$	1,727.3

The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 31, 2025 is as follows (dollars in millions):


	Quoted prices in active markets for identical assets or liabilities (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Fixed maturities, available for sale:
Corporate securities	$	—	$	13,130.7	$	131.8	$	13,262.5

United States Treasury securities and obligations of United States government corporations and agencies	—		177.1		—		177.1
States and political subdivisions	—		2,954.7		—		2,954.7
Foreign governments	—		120.5		—		120.5
Asset-backed securities	—		1,710.8		36.5		1,747.3
Agency residential mortgage-backed securities	—		849.5		—		849.5
Non-agency residential mortgage-backed securities	—		1,585.7		—		1,585.7
Collateralized loan obligations	—		1,142.5		—		1,142.5
Commercial mortgage-backed securities	—		2,043.5		3.5		2,047.0
Total fixed maturities, available for sale	—		23,715.0		171.8		23,886.8
Equity securities - corporate securities	176.5		117.0		73.7		367.2
Trading securities:



Asset-backed securities	—		38.7		—		38.7
Agency residential mortgage-backed securities	—		97.5		—		97.5
Non-agency residential mortgage-backed securities	—		44.2		—		44.2
Collateralized loan obligations	—		9.7		—		9.7
Commercial mortgage-backed securities	—		104.7		—		104.7

Total trading securities	—		294.8		—		294.8
Investments held by variable interest entities - corporate securities	—		293.0		—		293.0
Other invested assets:
Derivatives	—		323.5		—		323.5
Residual tranches	—		—		4.2		4.2
Total other invested assets	—		323.5		4.2		327.7

Assets held in separate accounts	—		2.8		—		2.8
Total assets carried at fair value by category	$	176.5	$	24,746.1	$	249.7	$	25,172.3
Equity securities measured at net asset value							22.0
Total assets carried at fair value							$	25,194.3

Liabilities:
Market risk benefit liability	$	—	$	—	$	48.1	$	48.1
Embedded derivatives associated with fixed indexed annuity products	—		—		1,600.6		1,600.6
Total liabilities carried at fair value	$	—	$	—	$	1,648.7	$	1,648.7

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the three months ended June 30, 2026 (dollars in millions):


	Fixed Maturities, Available for Sale		Equity Securities		Other Invested Assets		Total
Beginning of period	$	224.0	$	73.9	$	4.5	$	302.4
Gains (losses) included in net income	(2.2)		(0.4)		—		(2.6)
Gains (losses) included in accumulated other comprehensive loss	2.1		—		—		2.1
Purchases, sales, issuances and settlements (a)
Purchases	22.6		—		0.1		22.7
Sales	(1.3)		—		(0.1)		(1.4)
Transfers into Level 3 (b)	23.4		—		—		23.4
Transfers out of Level 3 (b)	(20.2)		—		—		(20.2)
End of period	$	248.4	$	73.5	$	4.5	$	326.4

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(2.2)	$	(0.4)	$	—	$	(2.6)
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	1.6	$	—	$	—	$	1.6

________________

(a)Purchases, sales, issuances and settlements represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities. There were no issuances or settlements during the three months ended June 30, 2026.

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the six months ended June 30, 2026 (dollars in millions):


	Fixed Maturities, Available for Sale		Equity Securities		Other Invested Assets		Total
Beginning of period	$	171.8	$	73.7	$	4.2	$	249.7
Gains (losses) included in net income	(0.7)		(0.2)		0.1		(0.8)
Gains (losses) included in accumulated other comprehensive loss	(2.0)		—		—		(2.0)
Purchases, sales, issuances and settlements (a)
Purchases	41.2		—		0.4		41.6
Sales	(2.4)		—		(0.2)		(2.6)
Transfers into Level 3 (b)	48.8		—		—		48.8
Transfers out of Level 3 (b)	(8.3)		—		—		(8.3)
End of period	$	248.4	$	73.5	$	4.5	$	326.4

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(0.7)	$	(0.2)	$	0.1	$	(0.8)
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	(3.3)	$	—	$	—	$	(3.3)

________________

The following table summarizes changes in the value of our embedded derivatives associated with fixed indexed annuity products (classified in policyholder account balances as presented in the note to the consolidated financial statements entitled "Derivatives") which are measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value (dollars in millions):


	Three months ended				Six months ended
	June 30,				June 30,
	2026		2025		2026		2025
Balance at beginning of the period	$	1,564.2	$	1,450.2	$	1,600.6	$	1,471.6
Premiums less benefits	(3.6)		(7.5)		(13.0)		(16.0)
Change in fair value, net	116.1		59.7		89.1		46.8
Balance at end of the period	$	1,676.7	$	1,502.4	$	1,676.7	$	1,502.4

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation


	Fixed Maturities, Available for Sale		Equity Securities		Other Invested Assets		Total
Beginning of period	$	277.3	$	73.3	$	2.6	$	353.2
Gains (losses) included in net income	(2.2)		1.1		—		(1.1)
Gains (losses) included in accumulated other comprehensive loss	(2.3)		—		—		(2.3)
Purchases, sales, issuances and settlements (a)
Purchases	82.8		—		—		82.8
Sales	(14.2)		—		—		(14.2)
Transfers into Level 3 (b)	129.6		20.0		—		149.6
Transfers out of Level 3 (b)	(16.4)		—		—		(16.4)
End of period	$	454.6	$	94.4	$	2.6	$	551.6

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(2.2)	$	1.1	$	—	$	(1.1)
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	(3.5)	$	—	$	—	$	(3.5)

________________

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the six months ended June 30, 2025 (dollars in millions):


	Fixed Maturities, Available for Sale		Equity Securities		Other Invested Assets		Total
Beginning of period	$	155.9	$	73.4	$	95.4	$	324.7
Gains (losses) included in net income	(0.5)		1.0		—		0.5
Gains (losses) included in accumulated other comprehensive loss	(0.3)		—		—		(0.3)
Purchases, sales, issuances and settlements (a)
Purchases	234.4		20.0		—		254.4
Sales	(20.0)		—		—		(20.0)
Transfers into Level 3 (b)	115.1		—		—		115.1
Transfers out of Level 3 (b)	(30.0)		—		(92.8)		(122.8)
End of period	$	454.6	$	94.4	$	2.6	$	551.6

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(0.5)	$	1.0	$	—	$	0.5
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	(2.1)	$	—	$	—	$	(2.1)

________________

(b)Transfers into Level 3 are the result of unobservable inputs utilized within valuation methodologies for assets that were previously valued using observable inputs. Transfers out of Level 3 are due to the use of observable inputs in valuation methodologies as well as the utilization of independent pricing service information for certain assets that the Company is able to validate. Transfers out of Level 3 other invested assets include $92.8 million of residual tranches that are valued based on our ownership share of the equity of the investee, as reported to us by the General Partner. These are not held at fair value and have been transferred out of Level 3.

Schedule of Fair Value Measurement Inputs

The following table provides additional information about the significant unobservable (Level 3) inputs developed internally by the Company to determine fair value for certain assets and liabilities carried at fair value at June 30, 2026 (dollars in millions):

Fair value at June 30, 2026

Valuation techniques

Unobservable inputs

Range (weighted average) (a)

Assets:

Corporate securities (c)

0.3

Recovery method

% Recovery expected

25.00%

Asset-backed securities (b)

7.1

Discounted cash flow analysis

Discount margins

1.60%

Asset-backed securities (c)

3.4

Recovery method

% Recovery expected

60.32%

Equity securities (d)

64.3

Market comparables

EBITDA multiples

11.6X

Total assets

75.1

Liabilities:

Market risk benefit liability (e)

50.6

Discounted cash flow analysis

Surrender rates

0.46% - 17.68% (3.44%)

Partial withdrawal rates

0.00% - 3.00% (0.96%)

Mortality

0.03% - 39.75% (3.63%)

GLWB utilization

5.92% - 47.62% (25.07%)

Non-performance risk spread

0.08% - 0.31% (N/A)

Embedded derivatives related to fixed indexed annuity products (f)

1,676.7

Discounted projected embedded derivatives

Surrender rates

0.46% - 23.36% (6.11%)

Partial withdrawal rates

0.00% - 4.50% (2.78%)

Mortality

0.03% - 39.75% (4.05%)

GLWB utilization

5.92% - 47.62% (25.07%)

Option budget

0.90% - 3.38% (2.64%)

Non-performance risk spread

0.08% - 0.31% (N/A)

Total liabilities

1,727.3

________________

(a) The weighted average is based on the relative fair value of the related assets or liabilities.

(b) Asset-backed securities - The significant unobservable input used in the fair value measurement of these asset-backed securities is discount margin added to the applicable risk-free rate. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement.

(c) Corporate and asset-backed securities - The significant unobservable input used in the fair value measurement of these securities is percentage of recovery expected. Significant increases (decreases) in percentage of recovery expected in isolation would have resulted in a significantly higher (lower) fair value measurement.

(d) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"). Generally, increases (decreases) in the EBITDA multiples would result in higher (lower) fair value measurements.

(e) Market risk benefits – Many of our fixed indexed annuity products include a guaranteed living withdrawal benefit ("GLWB") that is considered a MRB. The calculation of the value of MRBs is based on significant unobservable inputs including nonmarket assumptions related to surrender rates, partial withdrawal rates, mortality, GLWB utilization and non-performance risk. These assumptions are based on actuarial estimates and past experience. Increases in assumed surrender rates would generally decrease the value of a MRB liability. Increases in partial withdrawal rates would generally decrease the value of a MRB liability. A decrease in the mortality assumption would generally increase the MRB liability. Increases in utilization rates would generally increase the value of a MRB liability. Increases in non-performance risk spread decrease the MRB liability.

(f) Embedded derivatives related to fixed indexed annuity products are classified as policyholder account liabilities on the consolidated balance sheet. The significant unobservable inputs used in the fair value measurement of our embedded derivatives associated with fixed indexed annuity products are surrender rates, partial withdrawal rates, mortality, GLWB utilization, option budget, and non-performance risk. Assumed surrender rates, partial withdrawal rates, and mortality rates are used to project how long the contracts remain in force. Generally, the longer the contracts are assumed to be in force the higher the fair value of the embedded derivative. Increases (decreases) in utilization rates would generally increase (decrease) the value of the embedded derivative. Increases (decreases) in option budget in isolation would have resulted in a higher (lower) fair value measurement. Increases in non-performance risk spread result in a lower fair value measurement.

Fair value at December 31, 2025

Valuation techniques

Unobservable inputs

Range (weighted average) (a)

Assets:

Corporate securities (c)

0.5

Recovery method

% recovery expected

50.00%

Asset-backed securities (b)

7.6

Discounted cash flow analysis

Discount margins

1.61%

Asset-backed securities (c)

3.5

Recovery method

% Recovery expected

61.24%

Equity securities (d)

64.5

Market comparables

EBITDA multiples

10.9X

Total assets

76.1

Liabilities:

Market risk benefit liability (e)

48.1

Discounted cash flow analysis

Surrender rates

0.46% - 17.68% (3.44%)

Partial withdrawal rates

0.00% - 3.00% (0.96%)

Mortality

0.03% - 39.75% (3.63%)

GLWB utilization

5.92% - 47.62% (25.07%)

Non-performance risk spread

0.09% - 0.31% (N/A)

Embedded derivatives related to fixed indexed annuity products (f)

1,600.6

Discounted projected embedded derivatives

Surrender rates

0.46% - 23.36% (6.11%)

Partial withdrawal rates

0.00% - 4.50% (2.78%)

Mortality

0.03% - 39.75% (4.05%)

GLWB utilization

5.92% - 47.62% (25.07%)

Option budget

0.90% - 3.38% (2.64%)

Non-performance risk spread

0.09% - 0.31% (N/A)

Total liabilities

1,648.7

________________

(a) The weighted average is based on the relative fair value of the related assets or liabilities.

(d) Equity securities - The significant unobservable input used in the fair value measurement of these equity securities is multiples of EBITDA. Generally, increases (decreases) in the EBITDA multiples would result in higher (lower) fair value measurements.

(e) Market risk benefits – Many of our fixed indexed annuity products include a GLWB that is considered a MRB. The calculation of the value of MRBs is based on significant unobservable inputs including nonmarket assumptions related to surrender rates, partial withdrawal rates, mortality, GLWB utilization and non-performance risk. These assumptions are based on actuarial estimates and past experience. Increases in assumed surrender rates would generally decrease the value of a MRB liability. Increases in partial withdrawal rates would generally decrease the value of a MRB liability. A decrease in the mortality assumption would generally increase the MRB liability. Increases in utilization rates would generally increase the value of a MRB liability. Increases in non-performance risk spread decrease the MRB liability.

utilization, option budget, and non-performance risk. Assumed surrender rates, partial withdrawal rates, and mortality rates are used to project how long the contracts remain in force. Generally, the longer the contracts are assumed to be in force the higher the fair value of the embedded derivative. Increases (decreases) in utilization rates would generally increase (decrease) the value of the embedded derivative. Increases (decreases) in option budget in isolation would have resulted in a higher (lower) fair value measurement. Increases in non-performance risk spread result in a lower fair value measurement.

The fair value of our financial instruments not carried at fair value on a recurring basis are as follows (dollars in millions):


	June 30, 2026
	Quoted prices in active markets for identical assets or liabilities (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total estimated fair value		Total carrying amount
Assets:
Mortgage loans	$	—	$	—	$	3,270.8	$	3,270.8	$	3,356.3
Policy loans	—		—		144.2		144.2		144.2
Other invested assets:
Company-owned life insurance (a)	—		434.0		—		434.0		434.0
Cash and cash equivalents:
Unrestricted	1,289.7		—		—		1,289.7		1,289.7
Held by variable interest entities	16.3		—		—		16.3		16.3
Total	$	1,306.0	$	434.0	$	3,415.0	$	5,155.0	$	5,240.5

Liabilities:
Policyholder account balances (b)	$	—	$	—	$	17,964.2	$	17,964.2	$	17,964.2
Investment borrowings	—		2,943.6		—		2,943.6		2,941.7
Borrowings related to variable interest entities	—		276.6		—		276.6		274.5
Notes payable – direct corporate obligations	—		1,333.4		—		1,333.4		1,336.3
Total	$	—	$	4,553.6	$	17,964.2	$	22,517.8	$	22,516.7

________________

(a)Includes $222.3 million of COLI purchased as an investment vehicle to fund our agent deferred compensation plan, as further described in the footnote to the consolidated financial statements entitled "Agent Deferred Compensation Plan" within our 2025 Annual Report on Form 10-K, and a $211.7 million investment in a COLI policy for key employees that is recorded in our general account assets.

(b)Policyholder account balances represent the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This amount excludes the embedded derivatives related to fixed indexed annuity products, which are measured at fair value on a recurring basis.


	December 31, 2025
	Quoted prices in active markets for identical assets or liabilities (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total estimated fair value		Total carrying amount
Assets:
Mortgage loans	$	—	$	—	$	3,196.9	$	3,196.9	$	3,256.8
Policy loans	—		—		140.9		140.9		140.9
Other invested assets:
Company-owned life insurance (a)	—		420.9		—		420.9		420.9
Cash and cash equivalents:
Unrestricted	956.1		—		—		956.1		956.1
Held by variable interest entities	27.4		—		—		27.4		27.4
Total	$	983.5	$	420.9	$	3,337.8	$	4,742.2	$	4,802.1

Liabilities:
Policyholder account balances (b)	$	—	$	—	$	17,312.0	$	17,312.0	$	17,312.0
Investment borrowings	—		2,443.2		—		2,443.2		2,441.7
Borrowings related to variable interest entities	—		277.1		—		277.1		274.4
Notes payable – direct corporate obligations	—		1,365.7		—		1,365.7		1,335.6
Total	$	—	$	4,086.0	$	17,312.0	$	21,398.0	$	21,363.7

________________

(a)Includes $222.3 million of COLI purchased as an investment vehicle to fund our agent deferred compensation plan, as further described in the footnote to the consolidated financial statements entitled "Agent Deferred Compensation Plan" within our 2025 Annual Report on Form 10-K, and a $198.6 million investment in a COLI policy for key employees that is recorded in our general account assets.