v3.26.1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The Company is required to disclose estimated fair values for certain financial and nonfinancial assets and liabilities. Fair values for the Company’s insurance contracts other than annuity contracts (which are investment contracts) and equity method limited partnership interests are not required to be disclosed in fair value hierarchy. The estimated fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk through the matching of investment maturities with amounts due under insurance contracts.
Information regarding the three-level fair value hierarchy presented below and the valuation methodologies utilized by the Company to estimate fair values at each reporting date is included in Part II - Item 8, Note 3 of the
Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Financial Instruments Measured and Carried at Fair Value on a 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. During the six months ended June 30, 2026 and 2025, there were no transfers between Level 1 and Level 2. As of June 30, 2026, Level 3 invested assets comprised 7.4% of the Company’s total investment portfolio at fair value.
($ in millions)Carrying
Amount		Fair
Value		Fair Value Measurements at
Reporting Date Using
Level 1Level 2Level 3
June 30, 2026
Financial Assets(1)
Investments
Fixed maturity securities
U.S. Government and federally
   sponsored agency obligations:
Mortgage-backed securities$662.2 $662.2 $— $662.2 $— 
Other, including U.S. Treasury securities313.2 313.2 38.3 274.8 — 
Municipal bonds1,163.5 1,163.5 — 1,079.1 84.4 
Foreign government bonds7.9 7.9 — 7.9 — 
Corporate bonds1,954.5 1,954.5 0.5 1,632.1 321.9 
Other asset-backed securities1,665.7 1,665.7 — 1,631.4 34.3 
Total fixed maturity securities5,767.0 5,767.0 38.8 5,287.5 440.6 
Equity securities40.3 40.3 1.3 35.5 3.6 
Short-term investments184.8 184.8 184.8 — — 
Other investments24.4 24.4 — 24.4 — 
Totals$6,016.5 $6,016.5 $224.9 $5,347.4 $444.2 
Separate Account variable annuity assets(2)
$4,469.8 $4,469.8 $4,469.8 $— $— 
Financial Liabilities(3)
$79.9 $79.9 $— $7.6 $72.3 
December 31, 2025
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally
   sponsored agency obligations:
Mortgage-backed securities$689.0 $689.0 $— $689.0 $— 
Other, including U.S. Treasury securities325.8 325.8 40.8 285.0 — 
Municipal bonds
1,177.1 1,177.1 — 1,098.7 78.4 
Foreign government bonds
10.0 10.0 — 10.0 — 
Corporate bonds
1,910.3 1,910.3 4.9 1,562.8 342.6 
Other asset-backed securities
1,602.4 1,602.4 — 1,558.1 44.3 
Total fixed maturity securities5,714.6 5,714.6 45.7 5,203.6 465.3 
Equity securities41.9 41.9 1.3 36.8 3.8 
Short-term investments210.5 210.5 210.5 — — 
Other investments21.6 21.6 — 21.6 — 
Totals$5,988.6 $5,988.6 $257.5 $5,262.0 $469.1 
Separate Account (variable annuity) assets(2)
$4,157.4 $4,157.4 $4,157.4 $— $— 
Financial Liabilities(3)
$78.9 $78.9 $— $5.8 $73.1 
(1) Excludes limited partnerships that are measured at estimated fair value using the NAV per share (or its equivalent) as a practical expedient. As of June 30, 2026, the fair value of such investments was $26.9 million.
(2) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of the Separate Account variable annuity assets.
(3) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.
Changes in Level 3 Fair Value Measurements
The reconciliation for all financial assets and financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows:
($ in millions)Financial Assets
Financial
Liabilities(1)
Municipal
Bonds		Corporate
Bonds

Mortgage-Backed
and Other
Asset-
Backed
Securities(2)
Total
Fixed
Maturity
Securities		Equity SecuritiesTotal
Beginning balance, April 1, 2026$85.2 $336.6 $41.7 $463.5 $3.6 $467.1 $72.0 
Transfers into Level 3(3)
— — — — — — — 
Transfers out of Level 3(3)
— — — — — — — 
Total gains or losses
Net investment gains (losses) included in net income
— — — — — — — 
 Net investment (gains) losses included in net income related to financial liabilities
— — — — — — 3.7 
Net unrealized gains (losses)
   included in OCI
(0.4)(3.3)(3.3)(7.0)(7.0)(0.3)
Purchases— 13.9 — 13.9 — 13.9 — 
Issuances— — — — — — 0.8 
Sales— (11.6)— (11.6)— (11.6)— 
Settlements— — — — — — — 
Paydowns, maturities and distributions(0.4)(13.7)(4.1)(18.2)— (18.2)(3.9)
Ending balance, June 30, 2026$84.4 $321.9 $34.3 $440.6 $3.6 $444.2 $72.3 
Beginning balance, January 1, 2026$78.4 $342.6 $44.3 $465.3 $3.8 $469.1 $73.1 
Transfers into Level 3(3)
— — — — — — — 
Transfers out of Level 3(3)
— — — — — — — 
Total gains or losses
Net investment gains (losses) included in net income
— — 0.4 0.4 (0.2)0.2 — 
 Net investment (gains) losses included in net income related to financial liabilities
— — — — — — 4.9 
Net unrealized gains (losses)
   included in OCI
(0.5)(5.4)(1.8)(7.7)— (7.7)(0.2)
Purchases9.0 24.1 — 33.1 — 33.1 — 
Issuances— — — — — — 1.5 
Sales— (21.5)(0.7)(22.2)— (22.2)— 
Settlements— — — — — — — 
Paydowns, maturities and distributions(2.5)(17.9)(7.9)(28.3)— (28.3)(7.0)
Ending balance, June 30, 2026$84.4 $321.9 $34.3 $440.6 $3.6 $444.2 $72.3 
(1)Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.
(2)Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities.
(3)Transfers into and out of Level 3 during the three and six months ended June 30, 2026 were related to changes in the primary pricing source or changes in observability of external information used in determining fair value. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined.
($ 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 InterestsTotal
Beginning balance, April 1, 2025$76.1 $340.9 $67.1 $484.1 $38.9 $523.0 $74.3 
Transfers into Level 3(3)
— — — — — — — 
Transfers out of Level 3(3)
— — — — — — — 
Total gains or losses
Net investment gains (losses) included in net income
— — — — (0.9)(0.9)— 
 Net investment (gains) losses included in net income related to financial liabilities
— — — — — — 3.7 
 Net unrealized gains (losses)
   included in OCI
0.1 2.4 0.3 2.8 — 2.8 (0.4)
Purchases— 8.9 — 8.9 — 8.9 — 
Issuances— — — — — — 0.7 
Sales— (3.0)(1.7)(4.7)— (4.7)— 
Settlements— — — — — — — 
Paydowns, maturities and distributions(0.3)(7.3)(2.5)(10.1)— (10.1)(4.3)
Ending balance, June 30, 2025$75.9 $342.0 $63.2 $481.0 $38.0 $519.0 $74.0 
Beginning balance, January 1, 2025$74.9 $351.3 $73.7 $499.9 $33.1 $533.0 $75.5 
Transfers into Level 3(3)
— — — — — — — 
Transfers out of Level 3(3)
— — — — — — — 
Total gains or losses
Net investment gains (losses) included in net income
— — — — 4.9 4.9 — 
 Net investment (gains) losses included in net income related to financial liabilities
— — — — — — 5.6 
Net unrealized gains/losses
   included in OCI
1.5 1.8 (0.2)3.0 — 3.0 (0.2)
Purchases— 22.3 — 22.3 — 22.3 — 
Issuances— — — — — — 2.1 
Sales— (25.3)(1.8)(27.1)— (27.1)— 
Settlements— — — — — — — 
Paydowns, maturities and distributions(0.5)(8.1)(8.5)(17.1)— (17.1)(9.0)
Ending balance, June 30, 2025$75.9 $342.0 $63.2 $481.0 $38.0 $519.0 $74.0 
(1)Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds 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 three and six months ended June 30, 2025 were related to changes in the primary pricing source or changes in observability of external information used in determining fair value. 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.

For the three and six months ended June 30, 2026, the Company had net gains of $0.0 million and $0.2 million with respect to Level 3 financial assets. For the three and six months ended June 30, 2025, the Company had net losses of $0.9 million and net gains of $4.9 million with respect to Level 3 financial assets.
For the three and six months ended June 30, 2026, the Company had net losses of $3.7 million and $4.9 million, respectively, that were included in net income that were attributable to changes in the fair value of Level 3 financial liabilities. For the three and six months ended June 30, 2025, the Company had net losses of $3.7 million and $5.6 million, respectively, that were included in net income and attributable to changes in the fair value of Level 3 financial liabilities.
Level 3 Assets and Liabilities by Price Source
The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources:
($ in millions)
Total
Internal
External
June 30, 2026
Financial Assets
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities$— $— $— 
Municipal bonds84.4 — 84.4 
Corporate bonds321.9 193.7 128.2 
Other asset-backed securities34.3 — 34.3 
Total fixed maturity securities440.6 193.7 246.9 
Equity securities3.6 2.6 1.0 
Totals444.2 196.3 247.9 
Financial Liabilities(1)
72.3 72.3 — 
December 31, 2025
Financial Assets
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities— — — 
Municipal bonds78.4 — 78.4 
Corporate bonds342.6 6.7 335.9 
Other asset-backed securities44.3 — 44.3 
Total fixed maturity securities465.3 6.7 458.6 
Equity securities3.8 2.6 1.2 
Totals469.1 9.3 459.8 
Financial Liabilities(1)
$73.1 $73.1 $— 
(1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.

External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available. For annual reporting periods, certain Level 3 securities are valued with assistance from an independent third-party valuation specialist. During interim reporting periods, the Company updates those valuations using internally developed estimates that are based on the same valuation methodologies and significant assumptions applied by the independent valuation specialist, adjusted as appropriate for current market conditions and security-specific information.
Quantitative Information about Level 3 Fair Value Measurements
The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized with Level 3.
($ in millions)

Fair Value at
June 30, 2026
Valuation Technique(s)Unobservable Inputs
Range
(Weighted Average)
and Single Point Best
Estimate(1)
Impact of Increase in Input on Fair Value
Financial Assets
Corporate bonds
$193.7 
discounted cash flow
yield
3.5% - 10.3%
decrease
discounted cash flow
option adjusted spread
0 bps - 1086 bps
decrease
Financial Liabilities
Derivatives embedded in fixed indexed annuity products$83.4 discounted cash flowlapse rate7.5%decrease
mortality multiplier(2)
71.0%decrease
option budget
0.9% - 3.9%
increase
non-performance adjustment(3)
5.0%decrease
Net MRBs$(11.1)discounted cash flow lapse rate 7.5%decrease
mortality multiplier(2)
71.0%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, 2025		Valuation TechniquesUnobservable Inputs
Range
(Weighted Average)
and Single Point Best Estimate(1)
Impact of Increase in Input on Fair Value
Financial Liabilities
Derivatives embedded in fixed indexed annuity products$82.1 discounted cash flowlapse rate7.5%decrease
mortality multiplier(2)
71.0%decrease
option budget
0.9% - 3.9%
increase
non-performance adjustment(3)
5.0%decrease
Net MRBs$(9.0)discounted cash flowlapse rate7.5%decrease
mortality multiplier(2)
71.0%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.

The valuation techniques and significant unobservable inputs used in the fair value measurement for financial assets and financial liabilities classified as Level 3 are subject to the processes as described in Part II - Item 8, Note 3 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Generally, valuation techniques for corporate bonds include using discounted cash flow techniques where the unobservable input is the yield.
Financial Instruments Not Carried at Fair Value
The Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. These financial assets and financial liabilities are further described in Part II - Item 8, Note 3 in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. 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 1Level 2Level 3
June 30, 2026
Financial Assets
Policy loans$136.3 $139.3 $— $— $139.3 
Other investments92.3 92.3 — 38.2 54.1 
Deposit asset on reinsurance2,345.4 2,087.9 — — 2,087.9 
Financial Liabilities
Policyholders' account balances
4,962.9 4,625.4 — — 4,625.4 
Other policyholder funds1,076.0 1,076.0 — 1,073.1 2.9 
Long-term debt594.2 620.7 — 620.7 — 
December 31, 2025
Financial Assets
Policy loans$138.1 $141.2 $— $— $141.2 
Other investments77.4 77.5 — 39.3 38.2 
Deposit asset on reinsurance2,369.6 2,143.1 — — 2,143.1 
Financial Liabilities
Policyholders' account balances
4,984.9 4,791.1 — — 4,791.1 
Other policyholder funds 1,046.2 1,046.2 — 1,043.2 3.0 
Long-term debt593.4 629.1 — 629.1 —