v3.26.1
DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value by Balance Sheet Location
The Company uses freestanding derivatives to hedge policyholder features that themselves are derivatives embedded within certain of our annuity and life insurance products. These freestanding derivatives, which are not designated as hedging instruments, are held at fair value and are summarized as follows (dollars in millions):
June 30,
2026		December 31, 2025
Assets:
Other invested assets:
Fixed indexed call options$294.2 $323.5 
Reinsurance receivables(15.9)(15.3)
Total assets$278.3 $308.2 
Liabilities:
Embedded derivatives related to fixed indexed annuities at fair value:
Policyholder account balances$1,676.7 $1,600.6 
Schedule Pre-Tax Gains (Losses) Recognized in Net Income for Derivative Instruments
The following table provides the pre-tax impact recognized in net income for derivative instruments, which are not designated as hedges for the periods indicated (dollars in millions):
Three months endedSix months ended
June 30,June 30,
2026202520262025
Net investment income (loss) from policyholder and other special-purpose portfolios:
Fixed indexed call options$161.3 $81.0 $96.5 $10.4 
Total investment gains (losses):
Embedded derivative related to modified coinsurance agreement(0.2)0.1 (0.6)1.3 
Total revenues from derivative instruments, not designated as hedges161.1 81.1 95.9 11.7 
Insurance policy benefits:
Embedded derivatives related to fixed indexed annuities116.1 59.7 89.1 46.8 
Net pre-tax impact$45.0 $21.4 $6.8 $(35.1)
Schedule of Derivatives with Master Netting Arrangements
The following table summarizes information related to derivatives with master netting arrangements or collateral as of June 30, 2026 and December 31, 2025 (dollars in millions):
Gross amounts not offset in the balance sheet
Gross amounts recognizedGross amounts offset in the balance sheetNet amounts of assets presented in the balance sheetNon-cash collateralCash collateral receivedNet amount
June 30, 2026:
Fixed indexed call options$294.2 $— $294.2 $38.6 $— $255.6 
December 31, 2025:
Fixed indexed call options323.5 — 323.5 43.5 — 280.0