| Schedule of Company's Fair Value Hierarchy Measured at 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 1 | | Level 2 | | Level 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 securities | | 313.2 | | | 313.2 | | | 38.3 | | | 274.8 | | | — | | | Municipal bonds | | 1,163.5 | | | 1,163.5 | | | — | | | 1,079.1 | | | 84.4 | | | Foreign government bonds | | 7.9 | | | 7.9 | | | — | | | 7.9 | | | — | | | Corporate bonds | | 1,954.5 | | | 1,954.5 | | | 0.5 | | | 1,632.1 | | | 321.9 | | | Other asset-backed securities | | 1,665.7 | | | 1,665.7 | | | — | | | 1,631.4 | | | 34.3 | | | Total fixed maturity securities | | 5,767.0 | | | 5,767.0 | | | 38.8 | | | 5,287.5 | | | 440.6 | | | Equity securities | | 40.3 | | | 40.3 | | | 1.3 | | | 35.5 | | | 3.6 | | | | | | | | | | | | | | Short-term investments | | 184.8 | | | 184.8 | | | 184.8 | | | — | | | — | | | Other investments | | 24.4 | | | 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 securities | | 325.8 | | | 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 securities | | 5,714.6 | | | 5,714.6 | | | 45.7 | | | 5,203.6 | | | 465.3 | | | Equity securities | | 41.9 | | | 41.9 | | | 1.3 | | | 36.8 | | | 3.8 | | | | | | | | | | | | | | Short-term investments | | 210.5 | | | 210.5 | | | 210.5 | | | — | | | — | | | Other investments | | 21.6 | | | 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 $26.9 million. (2) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of the Separate Account variable annuity assets. (3) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.
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| Schedule of Table for Reconciliations for All Level 3 Assets Measured at Fair Value on a Recurring Basis |
The reconciliation for all financial assets and financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | Financial Assets | | Financial Liabilities(1) | | | Municipal
Bonds | | Corporate
Bonds | |
Mortgage-Backed and Other Asset- Backed Securities(2) | | Total
Fixed
Maturity
Securities | | Equity Securities | | Total | | | | 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) | | | Purchases | | 9.0 | | | 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 Interests | | Total | | | | 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 | |
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| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
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 bonds | | 84.4 | | | — | | | 84.4 | | | Corporate bonds | | 321.9 | | | 193.7 | | | 128.2 | | | Other asset-backed securities | | 34.3 | | | — | | | 34.3 | | | Total fixed maturity securities | | 440.6 | | | 193.7 | | | 246.9 | | | Equity securities | | 3.6 | | | 2.6 | | | 1.0 | | | | | | | | | | Totals | | 444.2 | | | 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 bonds | | 78.4 | | | — | | | 78.4 | | | Corporate bonds | | 342.6 | | | 6.7 | | | 335.9 | | | Other asset-backed securities | | 44.3 | | | — | | | 44.3 | | | Total fixed maturity securities | | 465.3 | | | 6.7 | | | 458.6 | | | Equity securities | | 3.8 | | | 2.6 | | | 1.2 | | | | | | | | | | Totals | | 469.1 | | | 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. 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 flow | | lapse rate | | 7.5% | | 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 Techniques | | Unobservable 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 flow | | lapse rate | | 7.5% | | 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 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. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Whole Life | | Term Life | | Experience Life | | Limited-Pay Whole Life | | Supplemental Health | | SPIA (life contingent) | Mortality / Morbidity | | | | | | | | | | | | | | Actual experience | | 0.7 | % | | 0.1% - 0.7% | | 1.8 | % | | 0.2 | % | | 30.3 | % | | N.M. | | Expected experience | | 0.8 | % | | 0.1% - 1.0% | | 2.0 | % | | 0.3 | % | | 27.8 | % | | N.M. | | Lapses | | | | | | | | | | | | | | Actual experience | | 3.8 | % | | 4.3% - 8.1% | | 4.5 | % | | 4.2 | % | | 11.0 | % | | N.M. | | Expected experience | | 3.4 | % | | 4.8% - 9.0% | | 3.3 | % | | 3.6 | % | | 10.5 | % | | N.M. | | | | | | | | | | | | | | | | June 30, 2025 | | | Whole Life | | Term Life | | Experience Life | | Limited-Pay Whole Life | | Supplemental Health | | SPIA (life contingent) | Mortality / Morbidity | | | | | | | | | | | | | | Actual experience | | 0.9 | % | | 0.1% - 0.4% | | 1.9 | % | | 0.2 | % | | 37.6 | % | | N.M. | | Expected experience | | 0.8 | % | | 0.1% - 0.9% | | 1.9 | % | | 0.3 | % | | 26.9 | % | | N.M. | | Lapses | | | | | | | | | | | | | | Actual experience | | 3.3 | % | | 3.7% - 10.1% | | 3.6 | % | | 3.4 | % | | 11.0 | % | | N.M. | | Expected experience | | 3.8 | % | | 5.1% - 9.6% | | 3.0 | % | | 4.0 | % | | 14.0 | % | | N.M. |
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| Schedule of Fair Value Assets and Liabilities Measured on Nonrecurring Basis |
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 1 | | Level 2 | | Level 3 | | June 30, 2026 | | | | | | | | | | | | Financial Assets | | | | | | | | | | | | Policy loans | | $ | 136.3 | | | $ | 139.3 | | | $ | — | | | $ | — | | | $ | 139.3 | | | Other investments | | 92.3 | | | 92.3 | | | — | | | 38.2 | | | 54.1 | | | Deposit asset on reinsurance | | 2,345.4 | | | 2,087.9 | | | — | | | — | | | 2,087.9 | | | Financial Liabilities | | | | | | | | | | | Policyholders' account balances | | 4,962.9 | | | 4,625.4 | | | — | | | — | | | 4,625.4 | | | Other policyholder funds | | 1,076.0 | | | 1,076.0 | | | — | | | 1,073.1 | | | 2.9 | | | Long-term debt | | 594.2 | | | 620.7 | | | — | | | 620.7 | | | — | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | Financial Assets | | | | | | | | | | | | Policy loans | | $ | 138.1 | | | $ | 141.2 | | | $ | — | | | $ | — | | | $ | 141.2 | | | Other investments | | 77.4 | | | 77.5 | | | — | | | 39.3 | | | 38.2 | | | Deposit asset on reinsurance | | 2,369.6 | | | 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 debt | | 593.4 | | | 629.1 | | | — | | | 629.1 | | | — | |
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