Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2025	Oct. 30, 2025
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2025
Document Transition Report	false
Entity File Number	001-31792
Entity Registrant Name	CNO Financial Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-3108137
Entity Address, Address Line One	11299 Illinois Street
Entity Address, City or Town	Carmel,
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46032
City Area Code	(317)
Local Phone Number	817-6100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		95,353,512
Entity Central Index Key	0001224608
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock, par value $0.01 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CNO
Security Exchange Name	NYSE
Rights To Purchase Series F Junior Participating Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Rights to purchase Series F Junior Participating Preferred Stock
Security Exchange Name	NYSE
No Trading Symbol Flag	true
5.125% Subordinated Debentures due 2060
Document Information [Line Items]
Title of 12(b) Security	5.125% Subordinated Debentures due 2060
Trading Symbol	CNOpA
Security Exchange Name	NYSE

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Sep. 30, 2025	Dec. 31, 2024
Investments:
Fixed maturities, available for sale, at fair value (net of allowance for credit losses: September 30, 2025 - $33.0 and December 31, 2024 - $37.1; amortized cost: September 30, 2025 - $25,219.3 and December 31, 2024 - $25,151.0)	$ 23,405.3	$ 22,730.1
Equity securities at fair value	377.2	272.4
Mortgage loans (net of allowance for credit losses: September 30, 2025 - $21.0 and December 31, 2024 - $13.6)	3,042.7	2,506.3
Policy loans	141.2	135.3
Trading securities	296.9	304.2
Investments held by variable interest entities (net of allowance for credit losses: September 30, 2025 - $0.5 and December 31, 2024 - $1.3; amortized cost: September 30, 2025 - $298.6 and December 31, 2024 - $437.0)	296.8	433.8
Other invested assets	1,617.0	1,491.5
Total investments	29,177.1	27,873.6
Cash and cash equivalents - unrestricted	1,218.3	1,656.7
Cash and cash equivalents held by variable interest entities	23.3	341.0
Accrued investment income	282.0	286.4
Present value of future profits	147.8	161.0
Deferred acquisition costs	2,343.7	2,158.6
Reinsurance receivables (net of allowance for credit losses: September 30, 2025 - $1.0 and December 31, 2024 - $3.0)	3,731.7	3,854.7
Income tax assets, net	708.1	814.1
Assets held in separate accounts	2.7	3.3
Other assets	661.5	699.9
Total assets	38,296.2	37,849.3
Liabilities for insurance products:
Policyholder account balances	18,290.3	17,594.2
Future policy benefits	11,975.5	11,705.5
Market risk benefit liability	52.6	60.0
Liability for life insurance policy claims	61.5	61.1
Unearned and advanced premiums	214.5	226.8
Liabilities related to separate accounts	2.7	3.3
Other liabilities	1,036.9	1,163.3
Investment borrowings	2,441.7	2,188.8
Borrowings related to variable interest entities	274.3	497.6
Notes payable – direct corporate obligations	1,335.2	1,833.5
Total liabilities	35,685.2	35,334.1
Commitments and Contingencies (Note 14)
Shareholders' equity:
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: September 30, 2025 – 95,840,989; December 31, 2024 – 101,618,957)	1.0	1.0
Additional paid-in capital	1,389.4	1,632.5
Accumulated other comprehensive loss	(1,118.9)	(1,371.4)
Retained earnings	2,339.5	2,253.1
Total shareholders' equity	2,611.0	2,515.2
Total liabilities and shareholders' equity	$ 38,296.2	$ 37,849.3

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2025	Dec. 31, 2024
Investments:
Fixed maturities, available for sale, allowance for credit losses	$ 33.0	$ 37.1
Fixed maturities, available for sale, amortized cost	25,219.3	25,151.0
Mortgage loans, allowance for credit losses	21.0	13.6
Investments held by variable interest entities, allowance for credit losses	0.5	1.3
Investments held by variable interest entities, amortized cost	298.6	437.0
Reinsurance receivables, allowance for current expected credit losses	$ 1.0	$ 3.0
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	8,000,000,000	8,000,000,000
Common stock, shares issued (in shares)	95,840,989	101,618,957
Common stock, shares outstanding (in shares)	95,840,989	101,618,957

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2025	Sep. 30, 2024
Revenues:
Insurance policy income	$ 658.4	$ 645.0	$ 1,960.4	$ 1,914.9
Net investment income:
General account assets	382.9	366.3	1,136.3	1,019.9
Policyholder and other special-purpose portfolios	116.8	87.6	158.6	312.3
Investment gains (losses):
Realized investment losses	(12.9)	(13.1)	(38.0)	(49.4)
Other investment gains	9.9	14.3	9.8	41.2
Total investment gains (losses)	(3.0)	1.2	(28.2)	(8.2)
Fee revenue and other income	33.6	29.5	117.2	113.4
Total revenues	1,188.7	1,129.6	3,344.3	3,352.3
Benefits and expenses:
Insurance policy benefits	702.1	731.0	1,930.5	1,942.0
Liability for future policy benefits remeasurement (gain) loss	(30.8)	7.3	(55.8)	(29.1)
Change in fair value of market risk benefits	(12.4)	(20.9)	(8.0)	(45.6)
Interest expense	56.6	68.0	177.7	192.4
Amortization of deferred acquisition costs and present value of future profits	69.9	64.0	205.9	185.9
Goodwill and other asset impairment	96.7	0.0	96.7	0.0
Gain on extinguishment of borrowings related to variable interest entities	0.0	0.0	(1.5)	0.0
Other operating costs and expenses	270.4	269.2	816.8	798.9
Total benefits and expenses	1,152.5	1,118.6	3,162.3	3,044.5
Income before income taxes	36.2	11.0	182.0	307.8
Income tax expense	13.1	1.7	45.6	69.9
Net income	$ 23.1	$ 9.3	$ 136.4	$ 237.9
Basic:
Weighted average shares outstanding (in shares)	96,603	105,101	98,639	107,265
Net income (in dollars per share)	$ 0.24	$ 0.09	$ 1.38	$ 2.22
Diluted:
Weighted average shares outstanding (in shares)	98,553	107,131	100,670	109,078
Net income (in dollars per share)	$ 0.24	$ 0.09	$ 1.36	$ 2.18

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2025	Sep. 30, 2024
Statement of Comprehensive Income [Abstract]
Net income	$ 23.1	$ 9.3	$ 136.4	$ 237.9
Other comprehensive income (loss), before tax:
Unrealized gains on investments	350.0	948.5	568.0	616.8
Adjustment to discount rate for liability for future policy benefits	(188.7)	(508.5)	(283.8)	(70.0)
Adjustment to instrument-specific credit risk for market risk benefits	(1.2)	(2.1)	(0.6)	(2.7)
Reclassification adjustments:
For net realized investment losses included in net income	11.1	9.6	38.8	46.6
Other comprehensive income before tax	171.2	447.5	322.4	590.7
Income tax expense related to items of accumulated other comprehensive income	(37.4)	(99.2)	(69.9)	(129.9)
Other comprehensive income, net of tax	133.8	348.3	252.5	460.8
Comprehensive income	$ 156.9	$ 357.6	$ 388.9	$ 698.7

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Retained earnings
Balance, beginning of period (in shares) at Dec. 31, 2023		109,358,000
Balance, beginning of period at Dec. 31, 2023	$ 2,215.6	$ 1.1	$ 1,891.5	$ (1,576.8)	$ 1,899.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	237.9				237.9
Other comprehensive income (loss), net of tax	460.8			460.8
Common stock repurchased (in shares)		(6,466,000)
Common stock repurchased	(190.0)	$ (0.1)	(189.9)
Dividends on common stock	(50.8)				(50.8)
Employee benefit plans, net of shares used to pay tax withholdings (in shares)		1,031,000
Employee benefit plans, net of shares used to pay tax withholdings	14.3		14.3
Balance, end of period (in shares) at Sep. 30, 2024		103,923,000
Balance, end of period at Sep. 30, 2024	2,687.8	$ 1.0	1,715.9	(1,116.0)	2,086.9
Balance, beginning of period (in shares) at Dec. 31, 2023		109,358,000
Balance, beginning of period at Dec. 31, 2023	2,215.6	$ 1.1	1,891.5	(1,576.8)	1,899.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 420.8
Balance, end of period (in shares) at Dec. 31, 2024	101,618,957	101,619,000
Balance, end of period at Dec. 31, 2024	$ 2,515.2	$ 1.0	1,632.5	(1,371.4)	2,253.1
Balance, beginning of period (in shares) at Jun. 30, 2024		106,514,000
Balance, beginning of period at Jun. 30, 2024	2,428.9	$ 1.1	1,797.6	(1,464.3)	2,094.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9.3				9.3
Other comprehensive income (loss), net of tax	348.3			348.3
Common stock repurchased (in shares)		(2,810,000)
Common stock repurchased	(90.0)	$ (0.1)	(89.9)
Dividends on common stock	(16.9)				(16.9)
Employee benefit plans, net of shares used to pay tax withholdings (in shares)		219,000
Employee benefit plans, net of shares used to pay tax withholdings	8.2		8.2
Balance, end of period (in shares) at Sep. 30, 2024		103,923,000
Balance, end of period at Sep. 30, 2024	$ 2,687.8	$ 1.0	1,715.9	(1,116.0)	2,086.9
Balance, beginning of period (in shares) at Dec. 31, 2024	101,618,957	101,619,000
Balance, beginning of period at Dec. 31, 2024	$ 2,515.2	$ 1.0	1,632.5	(1,371.4)	2,253.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 21.5
Balance, end of period at Mar. 31, 2025					2,258.2
Balance, beginning of period (in shares) at Dec. 31, 2024	101,618,957	101,619,000
Balance, beginning of period at Dec. 31, 2024	$ 2,515.2	$ 1.0	1,632.5	(1,371.4)	2,253.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	136.4				136.4
Other comprehensive income (loss), net of tax	252.5			252.5
Common stock repurchased (in shares)		(6,675,000)
Common stock repurchased	(259.9)		(259.9)
Dividends on common stock	(50.0)				(50.0)
Employee benefit plans, net of shares used to pay tax withholdings (in shares)		897,000
Employee benefit plans, net of shares used to pay tax withholdings	$ 16.8		16.8
Balance, end of period (in shares) at Sep. 30, 2025	95,840,989	95,841,000
Balance, end of period at Sep. 30, 2025	$ 2,611.0	$ 1.0	1,389.4	(1,118.9)	2,339.5
Balance, beginning of period (in shares) at Jun. 30, 2025		97,319,000
Balance, beginning of period at Jun. 30, 2025	2,522.7	$ 1.0	1,441.4	(1,252.7)	2,333.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23.1				23.1
Other comprehensive income (loss), net of tax	133.8			133.8
Common stock repurchased (in shares)		(1,570,000)
Common stock repurchased	(60.0)		(60.0)
Dividends on common stock	(16.6)				(16.6)
Employee benefit plans, net of shares used to pay tax withholdings (in shares)		92,000
Employee benefit plans, net of shares used to pay tax withholdings	$ 8.0		8.0
Balance, end of period (in shares) at Sep. 30, 2025	95,840,989	95,841,000
Balance, end of period at Sep. 30, 2025	$ 2,611.0	$ 1.0	$ 1,389.4	$ (1,118.9)	$ 2,339.5

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024
Cash flows from operating activities:
Insurance policy income	$ 1,781.0	$ 1,749.3
Net investment income	1,120.4	1,032.5
Fee revenue and other income	134.6	123.9
Insurance policy benefits	(1,228.8)	(1,215.3)
Interest expense	(159.3)	(167.9)
Deferrable policy acquisition costs	(377.8)	(327.4)
Other operating costs	(780.6)	(706.1)
Income taxes	(9.5)	(52.3)
Net cash provided by operating activities	480.0	436.7
Cash flows from investing activities:
Sales of investments	2,315.4	2,549.3
Maturities and redemptions of investments	2,209.5	1,492.0
Purchases of investments	(5,292.3)	(5,381.9)
Net sales of trading securities	0.0	9.4
Other	0.9	(6.2)
Net cash used by investing activities	(766.5)	(1,337.4)
Cash flows from financing activities:
Issuance of notes payable, net	0.0	691.0
Payments on notes payable	(500.0)	0.0
Issuance of common stock	9.6	8.1
Payments to repurchase common stock	(271.2)	(208.5)
Common stock dividends paid	(50.0)	(51.3)
Payments on financing arrangements	(11.4)	(10.7)
Amounts received for deposit products	2,189.5	2,855.9
Withdrawals from deposit products	(1,866.6)	(1,492.7)
Issuance of investment borrowings:
Federal Home Loan Bank	776.8	304.5
Payments on investment borrowings:
Federal Home Loan Bank	(523.7)	(304.9)
Related to variable interest entities	(222.6)	(534.4)
Net cash provided (used) by financing activities	(469.6)	1,257.0
Net increase (decrease) in cash and cash equivalents	(756.1)	356.3
Cash and cash equivalents - unrestricted and including held by variable interest entities, beginning of period	1,997.7	889.0
Cash and cash equivalents - unrestricted and including held by variable interest entities, end of period	$ 1,241.6	$ 1,245.3

BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES

CNO Financial Group, Inc., a Delaware corporation ("CNO"), is a holding company for a group of insurance companies that develop, market and administer health insurance, annuity, individual life insurance and other insurance and financial services products. The terms "CNO Financial Group, Inc.", "CNO", the "Company", "we", "us", and "our" as used in these financial statements refer to CNO and its subsidiaries. Such terms, when used to describe insurance business and products, refer to the insurance business and products of CNO's insurance subsidiaries.

We focus on serving middle-income pre-retiree and retired Americans, which we believe are attractive, underserved, high growth markets. We sell our products through exclusive agents, independent producers (some of whom sell one or more of our product lines exclusively) and direct marketing.

Our unaudited consolidated financial statements reflect normal recurring adjustments that, in the opinion of management, are necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. As permitted by rules and regulations of the Securities and Exchange Commission (the "SEC") applicable to quarterly reports on Form 10-Q, we have condensed or omitted certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Results for interim periods are not necessarily indicative of the results that may be expected for a full year.

The December 31, 2024 consolidated balance sheet data was derived from the audited consolidated financial statements included in our 2024 Annual Report on Form 10-K. Accordingly, these interim consolidated financial statements should be read together with the consolidated financial statements included in our 2024 Annual Report on Form 10-K.

When we prepare financial statements in conformity with GAAP, we are required to make estimates and assumptions that significantly affect reported amounts of various assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting periods. For example, we use significant estimates and assumptions to calculate values for deferred acquisition costs, the present value of future profits, fair value measurements of certain investments (including derivatives), allowance for credit losses and other-than-temporary impairments of investments, assets and liabilities related to income taxes, liabilities for insurance products, liabilities related to litigation, guaranty fund assessment accruals, goodwill and intangible assets, and fee revenue. If our future experience differs from these estimates and assumptions, our financial statements could be materially affected.

The accompanying financial statements are unaudited and include the accounts of the Company and its subsidiaries. Our consolidated financial statements exclude transactions between us and our consolidated affiliates, or among our consolidated affiliates.

Goodwill and Intangible Assets

In February 2021, we acquired DirectPath, LLC ("DirectPath", now known as Optavise, LLC ("Optavise") subsequent to its name change in April 2022). In April 2019, we acquired Web Benefits Design Corporation ("WBD"), which was subsequently merged into Optavise during 2023. Optavise provides personalized benefits education, advocacy and transparency, and communications services that help employers reduce healthcare costs and assist employees with making informed benefits decisions. Optavise goodwill and other intangible assets arising from the acquisitions are reflected in our Fee income segment.

Intangible assets with definite lives are amortized over their estimated useful lives and are reviewed for impairment if indicators of impairment arise. When such indicators are present, intangible assets are first tested for recoverability in accordance with Accounting Standards Codification (ASC) 360, Property, Plant, and Equipment. If the assets are not recoverable, an impairment loss is recorded, measured as the difference between the assets' fair value and their carrying value. Goodwill is tested annually for impairment and whenever indicators of impairment arise in accordance with ASC 350, Intangibles - Goodwill and Other. The Company first performs a qualitative assessment to determine whether it is more likely than not a goodwill impairment exists, and if an indication of potential impairment results from the qualitative assessment, a quantitative assessment is performed. The Company prepares a quantitative assessment to determine the fair value of the reporting unit by using a combination of the present value of expected future cash flows and a market approach based on revenue-multiple data from peer companies and relevant observable market transactions, if available. If an impairment is

identified, a write-off is recorded by the amount that the carrying value exceeds the fair value of the reporting unit up to the carrying amount of goodwill and intangible assets.

Macroeconomic, industry and market conditions, both current and future expected financial performance, and relevant entity-specific events in the three months ended September 30, 2025 caused us to consider whether there were any interim indicators of impairment. As a result of this evaluation, we identified that the valuation of Optavise would more likely than not be impacted by the recent decline in value of comparable publicly traded companies. This, combined with lower than anticipated revenue in the quarter and trends for future periods led us to conclude that there were indicators of impairment and we accordingly prepared a quantitative assessment. The Company determined the fair value of the reporting unit by using a combination of the present value of expected future cash flows and a market approach based on earnings multiple data from peer companies, using unobservable level 3 inputs.

As a result of the quantitative assessment performed, the Company concluded that goodwill of $69.5 million and other assets, primarily intangible assets, of $27.2 million were fully impaired as of September 30, 2025. The total impairment charge of $96.7 million is included in the accompanying consolidated statement of comprehensive income for the three and nine months ended September 30, 2025.

Recently Adopted Accounting Standards

We adopted Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable

Segment Disclosures ("ASU 2023-07") effective January 1, 2024. ASU 2023-07 is intended to improve reportable segment

disclosure requirements primarily through enhanced disclosures about significant segment expenses. Such requirements

include: (i) disclosures on significant segment expenses that are regularly provided to the chief operating decision maker

("CODM") and included within each reported measure of segment profit or loss on an annual and interim basis; (ii)

disclosures of an amount for other segment items by reportable segment and a description of its composition on an annual

and interim basis (the other segment items category is the difference between segment revenues less the segment expenses

disclosed pursuant to the new guidance); (iii) providing all annual disclosures on a reportable segment’s profit or loss and

assets currently required by Financial Accounting Standards Board ("FASB") ASC Topic 280, Segment Reporting, in

interim periods; and (iv) specifying the title and position of the CODM and an explanation of how the CODM uses the

reported measures to assess segment performance and make decisions about allocating resources. The adoption of ASU

2023-07 did not have an impact on our financial position or results of operations, and did not have a material impact on our

disclosures. The adoption was made retrospectively.

Recently Issued Accounting Standards

In September 2025, the FASB issued Accounting Standards Update 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). This update removes all references to prescriptive and sequential software development stages, and adds that entities are required to start capitalizing software costs when both of the following occur: 1) management has authorized and committed to funding the software project, and 2) it is probable that the project will be completed and the software will be used to perform the function intended. The update also removes Subtopic 350-50, Website Development Costs, and incorporates that guidance within Subtopic 350-40. ASU 2025-06 is effective for annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Early adoption is permitted. Entities will have the option to apply the updates prospectively, under a modified transition approach that is based on the status of the project and whether software costs were capitalized before the date of adoption, or retrospectively. We are currently evaluating the effect of ASU 2025-06 on our consolidated financial statements and related disclosures.

In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update provides a practical expedient for entities when estimating expected credit losses to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods. Early adoption is permitted. ASU 2025-05 should be applied prospectively. We are currently evaluating the effect of ASU 2025-05 on our consolidated financial statements and related disclosures.

In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting

Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement

Expenses (“ASU 2024-03”), which requires disclosure of additional information about specific expense categories in the

notes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for

interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. ASU 2024-03 may be

applied retrospectively or prospectively. The adoption of ASU 2024-03 will modify our disclosures but will not have an impact on our financial position or results of operations. We do not expect the impact to our disclosures to be material.

In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 is intended to improve the effectiveness of

income tax disclosures by requiring, among other things, the disclosure on an annual basis of: (i) specific categories in the

rate reconciliation; and (ii) additional information for reconciling items that meet a quantitative threshold. In addition, ASU

2023-09 requires disclosure (on an annual basis) of the following information about income taxes paid: (i) the amount of

income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes; and (ii) the amount

of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of

refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). ASU 2023-09 is

effective for annual periods beginning after December 15, 2024, to be applied prospectively with an option for retrospective

application (with early adoption permitted). The adoption of ASU 2023-09 will modify our disclosures but will not have an

impact on our financial position or results of operations.

Revision of Prior Period Amounts

As previously disclosed, certain amounts presented in the prior years’ consolidated statement of operations for the three and nine months ended September 30, 2024, consolidated balance sheet as of December 31, 2024, consolidated statement of shareholders’ equity as of December 31, 2024 and related footnotes thereto have been corrected to conform with the current period presentation. During the fourth quarter of 2024, the Company corrected certain immaterial errors that resulted in misclassifications related to market risk benefits.

Upon the adoption of Accounting Standards Update 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, the Company recorded the fair value of the market risk benefit ("MRB") in policyholder account balances, resulting in no initial MRB presented separately on the consolidated balance sheet. MRBs are required to be presented separately in the consolidated balance sheet. Subsequent to transaction inception, the resulting accumulated change in the fair value of the MRBs was recorded as market risk benefits within the consolidated balance sheet. Additionally, the transaction’s resulting policyholder account balance discount was accreted in change in fair value of MRBs. This accretion should have been recorded in insurance policy benefits within the consolidated statement of operations.

To correct for the error, the Company increased insurance policy benefits and decreased change in value of market benefits by $4.8 million within the consolidated statement of operations for the three months ended September 30, 2024, and the Company increased insurance policy benefits and decreased change in fair value of market risk benefits by $15.6 million within the consolidated statement of operations for the nine months ended September 30, 2024.

In addition, the Company identified an immaterial overstatement of its policy holder account balances and insurance policy benefits recorded for the year ended December 31, 2024 and the quarter ended March 31, 2025 related to the calculation of the embedded derivative for its flexible premium bonus indexed annuity product. This error caused the embedded derivative to be overstated as of these periods by $21.6 million and $31.7 million, respectively. The correction of these errors had no impact on our statement of cash flows or segment results for the periods reported.

Finally, the consolidated balance sheet for the year ended December 31, 2024 has been revised to correct immaterial errors related to the classification of non-redeemable preferred stock and to reflect an unsettled investment trade by one of our variable interest entities ("VIEs"). To correct for these errors, fixed maturities, available for sale, at fair value was decreased by $110.4 million with a corresponding increase to equity securities at fair value, and investments held by variable interest entities increased $1.5 million with a corresponding increase to other liabilities.

The Company assessed the materiality of these errors on prior period consolidated financial statements and determined that such financial statements were not materially misstated. Accordingly, the Company corrected these immaterial errors in this Quarterly Report on Form 10-Q. The following tables present the impact of the correction of the immaterial errors related to the overstatement of policy holder account balances and insurance policy benefits recorded, the classification of non-redeemable preferred stock and to reflect an unsettled investment trade by one of our variable interest entities for the year ended December 31, 2024 and for the three months ended March 31, 2025 (in millions):


Consolidated Balance Sheet
	December 31, 2024
	As Previously Reported		Adjustments		As Revised
Investments
Fixed maturities, available for sale, at fair value	$	22,840.5	$	(110.4)	$	22,730.1
Equity securities at fair value	162.0		110.4		272.4
Investments held by variable interest entities	432.3		1.5		433.8
Total investments	27,872.1		1.5		27,873.6
Income tax assets, net	818.9		(4.8)		814.1
Total assets	$	37,852.6	$	(3.3)	$	37,849.3

Liabilities:
Policyholder account balances	$	17,615.8	$	(21.6)	$	17,594.2
Other liabilities	1,161.8		1.5		1,163.3
Total Liabilities	35,354.2		(20.1)		$	35,334.1

Shareholders' equity:
Retained earnings	2,236.3		16.8		2,253.1
Total shareholders' equity	2,498.4		16.8		2,515.2
Total liabilities and shareholders' equity	$	37,852.6	$	(3.3)	$	37,849.3


Consolidated Statement of Shareholders' Equity
	Retained earnings
Balance, December 31, 2024	$	2,236.3
Correction of immaterial error	16.8
Balance, December 31, 2024 (as revised)	$	2,253.1

Balance, March 31, 2025	$	2,233.6
Correction of immaterial error	24.6
Balance, March 31, 2025 (as revised)	$	2,258.2

The following tables present line items for prior period impacts to the Company’s consolidated statement of operations that have been affected by the immaterial error discussed above and that will be revised in conjunction with future filings (in millions):


	Year ended December 31, 2024
	As previously reported		Adjustments		As Revised
Insurance policy benefits	$	2,471.9	$	(21.6)	$	2,450.3
Total benefits and expenses	3,931.2		(21.6)		3,909.6
Income before income taxes	518.3		21.6		539.9
Income tax expense	114.3		4.8		119.1
Net income	404.0		16.8		420.8

Basic earnings per common share	$	3.81	$	0.15	$	3.96
Diluted earnings per common share	$	3.74	$	0.15	$	3.89


	Three months ended March 31, 2025
	As previously reported		Adjustments		As Revised
Insurance policy benefits	$	580.1	$	(10.1)	$	570.0
Total benefits and expenses	986.4		(10.1)		976.3
Income before income taxes	17.7		10.1		27.8
Income tax expense	4.0		2.3		6.3
Net income	13.7		7.8		21.5

Basic earnings per common share	$	0.14	$	0.07	$	0.21
Diluted earnings per common share	$	0.13	$	0.08	$	0.21

INVESTMENTS

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

We classify our fixed maturity securities into one of two categories: (i) "available for sale" (which we carry at estimated fair value with any unrealized gain or loss, net of any allowance for credit losses and income taxes, recorded as a component of shareholders' equity); or (ii) "trading", which we carry at estimated fair value with changes in such value recognized as either net investment income (classified as investment income from policyholder and other special-purpose portfolios) or investment gains (losses).

Trading securities include: (i) investments purchased with the intent of selling in the near term to generate income; and (ii) certain fixed maturity securities containing embedded derivatives for which we have elected the fair value option. The change in fair value of the income generating investments is recognized in income from policyholder and other special-purpose portfolios in the consolidated statement of operations. The change in fair value of securities with embedded derivatives is recognized in other investment gains (losses) in the consolidated statement of operations.

We review our available for sale fixed maturity securities with unrealized losses to determine whether such impairments are the result of credit losses. We analyze various factors to make such determinations including, but not limited to: (i) actions taken by rating agencies; (ii) default by the issuer; (iii) the significance of the decline; (iv) an assessment of our intent to sell the security before recovering the security's amortized cost; (v) an economic analysis of the issuer's industry; and (vi) the financial strength, liquidity, and recoverability of the issuer. We perform a security by security review each quarter to evaluate whether a credit loss has occurred.

In determining the credit loss component, we discount the estimated cash flows on a security by security basis. We consider the impact of macroeconomic conditions on inputs used to measure the amount of credit loss. For most structured securities, cash flow estimates are based on bond-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayment speeds and structural support, including over-

collateralization, excess spread, subordination and guarantees. For corporate bonds, cash flow estimates are derived by considering asset type, rating, time to maturity, and applying an expected loss rate.

If a portion of the decline is due to credit-related factors, we separate the credit loss component of the impairment from the amount related to all other factors. The credit loss component is recorded as an allowance and reported in other investment gains (losses) (limited to the difference between estimated fair value and amortized cost). The impairment related to all other factors (non-credit factors) is reported in accumulated other comprehensive loss along with unrealized gains (losses) related to fixed maturity investments, available for sale, net of tax and related adjustments. The allowance is adjusted for any additional credit losses and subsequent recoveries. When recognizing an allowance associated with a credit loss, the cost basis is not adjusted. When we determine a security is uncollectible, the remaining amortized cost will be written off.

If we intend to sell an impaired fixed maturity security, available for sale, or identify an impaired fixed maturity security, available for sale, for which it is more likely than not we will be required to sell before anticipated recovery, the difference between the fair value and the amortized cost is included in other investment gains (losses) and the fair value becomes the new amortized cost. The new cost basis is not adjusted for any subsequent recoveries in fair value.

The Company reports accrued investment income separately from fixed maturities, available for sale, and has elected not to measure an allowance for credit losses for accrued investment income. Accrued investment income is written off through net investment income at the time the issuer of the bond defaults or is expected to default on payments.

At September 30, 2025, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Estimated fair value
Corporate securities	$	14,226.1	$	158.2	$	(1,352.0)	$	(27.5)	$	13,004.8
Certificates of deposit	—		—		—		—		—
United States Treasury securities and obligations of United States government corporations and agencies	206.2		—		(26.8)		—		179.4
States and political subdivisions	3,346.9		27.3		(375.7)		(2.8)		2,995.7
Foreign governments	121.9		1.1		(10.7)		(0.6)		111.7
Asset-backed securities	1,547.1		11.9		(43.2)		(0.1)		1,515.7
Agency residential mortgage-backed securities	896.0		11.9		(0.5)		—		907.4
Non-agency residential mortgage-backed securities	1,569.7		38.6		(96.9)		—		1,511.4
Collateralized loan obligations	1,127.4		3.2		(4.5)		—		1,126.1
Commercial mortgage-backed securities	2,178.0		5.9		(128.8)		(2.0)		2,053.1
Total fixed maturities, available for sale	$	25,219.3	$	258.1	$	(2,039.1)	$	(33.0)	$	23,405.3

At December 31, 2024, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Estimated fair value
Corporate securities	$	13,672.1	$	60.2	$	(1,660.4)	$	(31.1)	$	12,040.8
Certificates of deposit	470.0		18.3		—		—		488.3
United States Treasury securities and obligations of United States government corporations and agencies	214.8		—		(28.6)		—		186.2
States and political subdivisions	3,261.9		12.2		(436.4)		(3.4)		2,834.3
Foreign governments	107.2		0.1		(15.3)		(0.9)		91.1
Asset-backed securities	1,574.6		8.3		(66.4)		(0.1)		1,516.4
Agency residential mortgage-backed securities	819.8		5.3		(5.5)		—		819.6
Non-agency residential mortgage-backed securities	1,636.3		33.6		(130.8)		—		1,539.1
Collateralized loan obligations	1,015.2		5.6		(4.0)		—		1,016.8
Commercial mortgage-backed securities	2,379.1		3.7		(183.7)		(1.6)		2,197.5
Total fixed maturities, available for sale	$	25,151.0	$	147.3	$	(2,531.1)	$	(37.1)	$	22,730.1

The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale at September 30, 2025 by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities (such as asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities, collectively referred to as "structured securities") frequently include provisions for periodic principal payments and permit periodic unscheduled payments.


	Amortized cost		Estimated fair value
	(Dollars in millions)
Due in one year or less	$	268.0	$	266.9
Due after one year through five years	2,261.0		2,258.5
Due after five years through ten years	2,481.3		2,519.2
Due after ten years	12,890.8		11,247.0
Subtotal	17,901.1		16,291.6
Structured securities	7,318.2		7,113.7
Total fixed maturities, available for sale	$	25,219.3	$	23,405.3

Gross Unrealized Investment Losses

Our investment strategy is to manage, over a sustained period and within acceptable parameters of quality and risk, capital efficiency through active strategic asset allocation and investment management. Accordingly, we may sell securities at a gain or a loss to enhance the projected total return of the portfolio as market opportunities change, to reflect changing perceptions of risk, or to better match certain characteristics of our investment portfolio with the corresponding characteristics of our insurance liabilities.

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position at September 30, 2025 (dollars in millions):


	Less than 12 months				12 months or greater				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Corporate securities	$	198.2	$	(3.4)	$	3,153.4	$	(449.7)	$	3,351.6	$	(453.1)
United States Treasury securities and obligations of United States government corporations and agencies	18.3		(1.7)		154.2		(25.1)		172.5		(26.8)
States and political subdivisions	203.9		(2.0)		861.7		(128.1)		1,065.6		(130.1)
Foreign governments	—		—		20.8		(0.9)		20.8		(0.9)
Asset-backed securities	37.9		(0.3)		621.9		(42.1)		659.8		(42.4)
Agency residential mortgage-backed securities	21.3		(0.1)		45.1		(0.4)		66.4		(.5)
Non-agency residential mortgage-backed securities	84.2		(0.4)		762.5		(96.5)		846.7		(96.9)
Collateralized loan obligations	284.3		(2.4)		66.8		(2.1)		351.1		(4.5)
Commercial mortgage-backed securities	170.9		(0.6)		1,234.4		(128.2)		1,405.3		(128.8)
Total fixed maturities, available for sale	$	1,019.0	$	(10.9)	$	6,920.8	$	(873.1)	$	7,939.8	$	(884.0)

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position at December 31, 2024 (dollars in millions):


	Less than 12 months				12 months or greater				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Corporate securities	$	1,200.8	$	(35.5)	$	4,029.2	$	(740.3)	$	5,230.0	$	(775.8)
United States Treasury securities and obligations of United States government corporations and agencies	44.7		(3.8)		141.5		(24.8)		186.2		(28.6)
States and political subdivisions	831.9		(20.5)		896.1		(212.1)		1,728.0		(232.6)
Foreign governments	17.4		(1.0)		10.0		(1.0)		27.4		(2.0)
Asset-backed securities	124.8		(1.2)		807.9		(64.3)		932.7		(65.5)
Agency residential mortgage-backed securities	297.1		(5.3)		3.1		(0.2)		300.2		(5.5)
Non-agency residential mortgage-backed securities	128.0		(1.4)		884.6		(129.4)		1,012.6		(130.8)
Collateralized loan obligations	162.9		(0.7)		66.9		(3.2)		229.8		(3.9)
Commercial mortgage-backed securities	174.5		(1.2)		1,642.7		(182.5)		1,817.2		(183.7)
Total fixed maturities, available for sale	$	2,982.1	$	(70.6)	$	8,482.0	$	(1,357.8)	$	11,464.1	$	(1,428.4)

Based on management's current assessment of investments with unrealized losses at September 30, 2025, the Company believes the issuers of the securities will continue to meet their obligations. While we do not have the intent to sell securities with unrealized losses and it is not more likely than not that we will be required to sell securities with unrealized losses prior to their anticipated recovery, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, if a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we had the intent to sell the security before its anticipated recovery.

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three months ended September 30, 2025 (dollars in millions):


	Corporate securities		Other		Total
Allowance at June 30, 2025	$	33.1	$	6.0	$	39.1
Additions for securities for which credit losses were not previously recorded	0.4		—		0.4
Additions (reductions) for securities where an allowance was previously recorded	(4.6)		(0.5)		(5.1)
Reduction for securities disposed during the period	(1.4)		—		(1.4)
Allowance at September 30, 2025	$	27.5	$	5.5	$	33.0

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the nine months ended September 30, 2025 (dollars in millions):


	Corporate securities		Other		Total
Allowance at December 31, 2024	$	31.1	$	6.0	$	37.1
Additions for securities for which credit losses were not previously recorded	3.5		—		3.5
Additions (reductions) for securities where an allowance was previously recorded	(3.7)		(0.5)		(4.2)
Reduction for securities disposed during the period	(3.4)		—		(3.4)
Allowance at September 30, 2025	$	27.5	$	5.5	$	33.0

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three months ended September 30, 2024 (dollars in millions):


	Corporate securities		Other		Total
Allowance at June 30, 2024	$	38.6	$	1.2	$	39.8
Additions for securities for which credit losses were not previously recorded	1.1		—		1.1
Additions (reductions) for securities where an allowance was previously recorded	(6.6)		0.2		(6.4)
Reduction for securities disposed during the period	(8.6)		—		(8.6)
Allowance at September 30, 2024	$	24.5	$	1.4	$	25.9

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the nine months ended September 30, 2024 (dollars in millions):


	Corporate securities		Other		Total
Allowance at December 31, 2023	$	41.7	$	1.2	$	42.9
Additions for securities for which credit losses were not previously recorded	5.4		0.1		5.5
Additions (reductions) for securities where an allowance was previously recorded	(12.8)		0.2		(12.6)
Reduction for securities disposed during the period	(9.8)		(0.1)		(9.9)
Allowance at September 30, 2024	$	24.5	$	1.4	$	25.9

Mortgage Loans

Mortgage loans are carried at amortized unpaid balance, net of allowance for estimated credit losses. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Payment terms specified for mortgage loans may include a prepayment penalty for unscheduled payoff of the investment. Prepayment penalties are recognized as investment income when received.

The allowance for estimated credit losses is measured using a loss-rate method on an individual asset basis. Inputs used include asset-specific characteristics, current economic conditions, historical loss information and reasonable and supportable forecasts about future economic conditions.

The mortgage loan balance was comprised of commercial and residential mortgage loans. At September 30, 2025, we held commercial mortgage loan investments with an amortized cost and fair value of $1,674.0 million and $1,577.1 million, respectively. At September 30, 2025, there were no commercial mortgage loans that were non-current or in the process of foreclosure.

The following table provides the amortized cost by year of origination and estimated fair value of our outstanding commercial mortgage loans and the underlying collateral as of September 30, 2025 (dollars in millions):


															Estimated fair value
Loan-to-value ratio (a)	2025		2024		2023		2022		2021		Prior		Total amortized cost		Commercial mortgage loans		Collateral
Less than 60%	$	165.2	$	169.4	$	179.5	$	142.1	$	113.2	$	455.2	$	1,224.6	$	1,165.6	$	3,987.9
60% to less than 70%	105.4		15.0		36.4		24.1		18.0		36.3		235.2		218.8		362.0
70% to less than 80%	—		—		59.6		51.0		—		22.8		133.4		120.9		181.0
80% to less than 90%	10.1		—		—		61.0		—		—		71.1		64.2		88.3
90% to less than 100%	—		—		—		—		7.8		1.9		9.7		7.6		9.8

Total	$	280.7	$	184.4	$	275.5	$	278.2	$	139.0	$	516.2	$	1,674.0	$	1,577.1	$	4,629.0

________________

(a)Loan-to-value ratios are calculated as the ratio of: (i) the amortized cost of the commercial mortgage loans; to (ii) the estimated fair value of the underlying collateral.

At September 30, 2025, we held residential mortgage loan investments with an amortized cost and fair value of $1,389.8 million and $1,366.0 million, respectively. We consider current or non-current loan status as our primary credit quality indicator in conjunction with other quantitative and qualitative factors. We define non-current loans as those that are 90 or more days past-due and/or in nonaccrual status. At September 30, 2025, there were 24 residential mortgage loans that were non-current with an amortized cost of $17.7 million (of which, five loans with an amortized cost of $3.7 million were in foreclosure).

The following table summarizes changes in the allowance for credit losses related to mortgage loans for the periods indicated (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Allowance at the beginning of the period	$	21.1	$	13.2	$	13.6	$	15.4
Increase (decrease) in provision for expected credit losses	(0.1)		3.3		7.4		1.1
Allowance at the end of the period	$	21.0	$	16.5	$	21.0	$	16.5

Total Investment Gains (Losses)

The following table sets forth the total investment gains (losses) for the periods indicated (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Realized investment gains (losses):
Gross realized gains on sales of fixed maturities, available for sale	$	1.9	$	6.3	$	4.8	$	9.3
Gross realized losses on sales of fixed maturities, available for sale	(18.1)		(12.8)		(42.7)		(46.3)
Equity securities, net	0.7		—		0.2		(0.1)
Other, net	2.6		(6.6)		(0.3)		(12.3)
Total realized investment losses	(12.9)		(13.1)		(38.0)		(49.4)
Change in allowance for credit losses	8.0		1.6		(2.6)		7.2
Change in fair value of equity securities (a)	1.4		2.8		3.5		3.0
Other changes in fair value (b) (c)	0.5		9.8		8.9		27.1
Gain on liquidation of variable interest entities	—		0.1		—		3.9
Other investment gains (losses)	9.9		14.3		9.8		41.2
Total investment gains (losses)	$	(3.0)	$	1.2	$	(28.2)	$	(8.2)

_________________

(a) Changes in the estimated fair value of equity securities (that are still held as of the end of the respective periods) were $1.7 million and $2.8 million for the three months ended September 30, 2025 and 2024, respectively, and were $5.9 million and $3.1 million for the nine months ended September 30, 2025 and 2024, respectively.

(b) Other changes in fair value are comprised of (i) gains related to certain other invested assets and fixed maturity investments with embedded derivatives, including the change in fair value, of nil and $8.1 million for the three months ended September 30, 2025 and 2024, respectively, and $7.1 million and $25.2 million for the nine months ended September 30, 2025 and 2024, respectively; and (ii) the increase in fair value of embedded derivatives related to a modified coinsurance agreement of $0.5 million and $1.7 million for the three months ended September 30, 2025 and 2024, respectively, and $1.8 million and $1.9 million for the nine months ended September 30, 2025 and 2024, respectively.

(c) Changes in the estimated fair value of fixed maturity investments with embedded derivatives that we have elected the fair value option (that are still held as of the end of the respective periods) were $3.0 million and $6.1 million for the three months ended September 30, 2025 and 2024, respectively, and $10.1 million and $10.8 million for the nine months ended September 30, 2025 and 2024, respectively.

Our fixed maturity investments are generally purchased in the context of various long-term strategies, including funding insurance liabilities, so we do not generally seek to generate short-term realized gains through the purchase and sale of such securities. In certain circumstances, including those in which securities are selling at prices which exceed our view of their underlying economic value, or when it is possible to reinvest the proceeds to better meet our long-term asset-liability objectives, we may sell certain securities.

During the three months ended September 30, 2025, the $18.1 million of gross realized losses on sales of $349.1 million of fixed maturity securities, available for sale, primarily related to various corporate securities. Securities are generally sold at a loss following unforeseen sector or issuer-specific events or conditions, shifts in perceived credit quality relative values, or in connection with strategic asset repositionings related to changes in market conditions.

During the nine months ended September 30, 2025, the $42.7 million of gross realized losses on sales of $874.2 million of fixed maturity securities, available for sale, primarily related to various corporate securities.

During the three months ended September 30, 2024, the $12.8 million of gross realized losses on sales of $561.1 million of fixed maturity securities, available for sale, primarily related to various corporate securities and commercial mortgage-backed securities.

During the nine months ended September 30, 2024, the $46.3 million of gross realized losses on sales of $1,230.3 million of fixed maturity securities, available for sale, primarily related to various corporate securities, asset backed securities, and various other investments.

Future events may occur, or additional information may become available, which may necessitate future realized losses in our portfolio. Significant losses could have a material adverse effect on our consolidated financial statements in future periods.

At September 30, 2025, the amortized cost and carrying value of fixed maturities that were non-income producing were $5.7 million and $3.8 million, respectively.

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, therefore, represents an exit price, not an entry price. We carry certain assets and liabilities at fair value on a recurring basis, including fixed maturities, equity securities, trading securities, investments held by VIEs, derivatives, separate account assets and embedded derivatives. We carry our company-owned life insurance ("COLI"), which is invested in a series of mutual funds, at its cash surrender value which approximates fair value. In addition, we disclose fair value for certain financial instruments that are not carried at fair value, including mortgage loans, policy loans, cash and cash equivalents, insurance liabilities for interest-sensitive products and funding agreements, investment borrowings, notes payable and borrowings related to VIEs.

The degree of judgment utilized in measuring the fair value of financial instruments is largely dependent on the level to which pricing is based on observable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. Financial instruments with readily available active quoted prices would be considered to have fair values based on the highest level of observable inputs, and little judgment would be utilized in measuring fair value. Financial instruments that rarely trade would often have fair value based on a lower level of observable inputs, and more judgment would be utilized in measuring fair value.

Valuation Hierarchy

There is a three-level hierarchy for valuing assets or liabilities at fair value based on whether inputs are observable or unobservable.

•Level 1 – includes assets and liabilities valued using inputs that are unadjusted quoted prices in active markets for identical assets or liabilities. Our Level 1 assets primarily include cash and cash equivalents and exchange-traded securities.

•Level 2 – includes assets and liabilities valued using inputs that are quoted prices for similar assets in an active market, quoted prices for identical or similar assets in a market that is not active, observable inputs, or observable inputs that can be corroborated by market data. Level 2 assets and liabilities include those financial instruments that are valued by independent pricing services using models or other valuation methodologies. These models consider various inputs such as credit rating, maturity, corporate credit spreads, reported trades and other inputs that are observable or derived from observable information in the marketplace or are supported by transactions executed in the marketplace. Financial assets in this category primarily include: certain publicly registered and privately placed corporate fixed maturity securities; certain government or agency securities; certain mortgage and asset-backed securities; certain equity securities; most investments held by our consolidated VIEs; and derivatives such as call options. Financial liabilities in this category include investment borrowings, notes payable and borrowings related to VIEs.

•Level 3 – includes assets and liabilities valued using unobservable inputs that are used in model-based valuations that contain management assumptions. Level 3 assets and liabilities include those financial instruments whose fair value is

estimated based on broker-dealer quotes, pricing services or internally developed models or methodologies utilizing significant inputs not based on, or corroborated by, readily available market information. Financial assets in this category include certain corporate securities, certain structured securities, mortgage loans, policy loans and other less liquid securities. Financial liabilities in this category include our insurance liabilities for interest-sensitive products, which includes embedded derivatives and MRB related to our fixed indexed annuity products, and and funding agreements since their values include significant unobservable inputs, including actuarial assumptions.

At each reporting date, we classify assets and liabilities into the three input levels based on the lowest level of input that is significant to the measurement of fair value for each asset and liability reported at fair value. This classification is impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction and overall market conditions. Our assessment of the significance of a particular input to the fair value measurement and the ultimate classification of each asset and liability requires judgment and is subject to change from period to period based on the observability of the valuation inputs.

The vast majority of our assets carried at fair value use Level 2 inputs for the determination of fair value. These fair values are obtained primarily from independent pricing services, which use Level 2 inputs for the determination of fair value. Our Level 2 assets are valued as follows:

Fixed maturities available for sale, equity securities and trading securities

Corporate securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads.

U.S. Treasuries and obligations of U.S. Government corporations and agencies are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets and maturity.

States and political subdivisions are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances and credit spreads.

Foreign governments are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances, benchmark yields, credit spreads and issuer rating.

Asset-backed securities, agency and non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of quoted prices in inactive markets, spreads on actively traded securities, expected prepayments, expected default rates, expected recovery rates and issue specific information including, but not limited to, collateral type, seniority and vintage.

Equity securities are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads.

Investments held by VIEs

Corporate securities are generally priced using market and income approaches using independent pricing vendors. Inputs generally consist of issuer rating, benchmark yields, maturity, and credit spreads.

Other invested assets - derivatives

The fair value measurements for derivative instruments, including embedded derivatives requiring bifurcation, are determined based on the consideration of several inputs including closing exchange or over-the-counter market price quotes, time value and volatility factors underlying options, market interest rates and non-performance risk.

Third-party pricing services normally derive security prices through recently reported trades for identical or similar securities making adjustments through the reporting date based upon observable market information. If there are no recently reported trades, the third-party pricing services may use matrix or model processes to develop a security price where future cash flow expectations are discounted at an estimated risk-adjusted market rate. The number of prices obtained for a given security is dependent on the Company's analysis of such prices as further described below.

As the Company is responsible for the determination of fair value, we have control processes designed to ensure that the fair values received from third-party pricing sources are reasonable and the valuation techniques and assumptions used appear reasonable and consistent with prevailing market conditions. Additionally, when inputs are provided by third-party pricing sources, we have controls in place to review those inputs for reasonableness. As part of these controls, we perform monthly quantitative and qualitative analysis on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. The Company's analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) where available, a comparison of multiple pricing services' valuations for the same security; (iii) a review of month to month price fluctuations; (iv) a review to ensure valuations are not unreasonably dated; and (v) back testing to compare actual purchase and sale transactions with valuations received from third parties. As a result of such procedures, the Company may conclude a particular price received from a third-party is not reflective of current market conditions. In those instances, we may request additional pricing quotes or apply internally developed valuations. However, the number of such instances is insignificant and the aggregate change in value of such investments is not materially different from the original prices received.

The categorization of the fair value measurements of our investments priced by independent pricing services was based upon the Company's judgment of the inputs or methodologies used by the independent pricing services to value different asset classes. The Company categorizes such fair value measurements based upon asset classes and the underlying observable or unobservable inputs used to value such investments.

For securities that are not priced by pricing services and may not be reliably priced using pricing models, we obtain broker quotes. These broker quotes are non-binding and represent an exit price, but assumptions used to establish the fair value may not be observable and therefore represent Level 3 inputs. Approximately 98 percent of our Level 3 fixed maturity securities and trading securities were valued using unadjusted broker quotes or broker-provided valuation inputs. The remaining Level 3 fixed maturity investments do not have readily determinable market prices and/or observable inputs. For these securities, we use internally developed valuations. Key assumptions used to determine fair value for these securities may include risk premiums, projected performance of underlying collateral and other factors involving significant assumptions which may not be reflective of an active market. For certain investments, we use a matrix or model process to develop a security price where future cash flow expectations are discounted at an estimated market rate. The pricing matrix incorporates term interest rates as well as a spread level based on the issuer's credit rating, other factors relating to the issuer, and the security's maturity. In some instances issuer-specific spread adjustments, which can be positive or negative, are made based upon internal analysis of security specifics such as liquidity, deal size, and time to maturity.

The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at September 30, 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	$	—	$	12,522.6	$	482.2	$	13,004.8
Certificates of deposit	—		—		—		—
United States Treasury securities and obligations of United States government corporations and agencies	—		179.4		—		179.4
States and political subdivisions	—		2,995.7		—		2,995.7
Foreign governments	—		111.7		—		111.7
Asset-backed securities	—		1,421.1		94.6		1,515.7
Agency residential mortgage-backed securities	—		907.4		—		907.4
Non-agency residential mortgage-backed securities	—		1,511.4		—		1,511.4
Collateralized loan obligations	—		1,126.1		—		1,126.1
Commercial mortgage-backed securities	—		2,044.4		8.7		2,053.1
Total fixed maturities, available for sale	—		22,819.8		585.5		23,405.3

Equity securities - corporate securities	150.6		131.0		74.2		355.8

Trading securities:
Corporate securities	—		—		—		—



Asset-backed securities	—		39.4		—		39.4
Agency residential mortgage-backed securities	—		98.0		—		98.0
Non-agency residential mortgage-backed securities	—		45.9		—		45.9
Collateralized loan obligations	—		9.6		—		9.6
Commercial mortgage-backed securities	—		104.0		—		104.0

Total trading securities	—		296.9		—		296.9
Investments held by variable interest entities - corporate securities	—		296.8		—		296.8
Other invested assets:
Derivatives	—		297.2		—		297.2
Residual tranches	—		—		2.6		2.6
Total other invested assets	—		297.2		2.6		299.8

Assets held in separate accounts	—		2.7		—		2.7
Total assets carried at fair value by category	$	150.6	$	23,844.4	$	662.3	$	24,657.3
Equity securities measured at net asset value							21.4
Total assets carried at fair value							$	24,678.7

Liabilities:
Market risk benefit liability	$	—	$	—	$	52.6	$	52.6
Embedded derivatives associated with fixed indexed annuity products	—		—		1,598.4		1,598.4
Total liabilities carried at fair value	$	—	$	—	$	1,651.0	$	1,651.0

The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 31, 2024 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	$	—	$	11,912.8	$	128.0	$	12,040.8
Certificates of deposit	—		488.3		—		488.3
United States Treasury securities and obligations of United States government corporations and agencies	—		186.2		—		186.2
States and political subdivisions	—		2,834.3		—		2,834.3
Foreign governments	—		91.1		—		91.1
Asset-backed securities	—		1,496.6		19.8		1,516.4
Agency residential mortgage-backed securities	—		819.6		—		819.6
Non-agency residential mortgage-backed securities	—		1,539.1		—		1,539.1
Collateralized loan obligations	—		1,012.8		4.0		1,016.8
Commercial mortgage-backed securities	—		2,193.4		4.1		2,197.5
Total fixed maturities, available for sale	—		22,574.2		155.9		22,730.1

Equity securities - corporate securities	64.0		134.9		73.4		272.3


Trading securities:



Asset-backed securities	—		40.6		—		40.6
Agency residential mortgage-backed securities	—		97.1		—		97.1
Non-agency residential mortgage-backed securities	—		53.3		—		53.3
Collateralized loan obligations	—		9.5		—		9.5
Commercial mortgage-backed securities	—		103.7		—		103.7

Total trading securities	—		304.2		—		304.2
Investments held by variable interest entities - corporate securities	—		433.8		—		433.8
Other invested assets:
Derivatives	—		279.0		—		279.0
Residual tranches	—		1.5		95.4		96.9
Total other invested assets	—		280.5		95.4		375.9

Assets held in separate accounts	—		3.3		—		3.3
Total assets carried at fair value	$	64.0	$	23,730.9	$	324.7	$	24,119.6

Liabilities:
Market risk benefit liability	$	—	$	—	$	60.0	$	60.0
Embedded derivatives associated with fixed indexed annuity products	—		—		1,471.6		1,471.6
Total liabilities carried at fair value	$	—	$	—	$	1,531.6	$	1,531.6

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 September 30, 2025 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	454.6	$	94.4	$	—	$	2.6	$	551.6
Gains (losses) included in net income	(2.0)		0.3		—		—		(1.7)
Gains (losses) included in accumulated other comprehensive loss	4.2		—		—		—		4.2
Purchases, sales, issuances and settlements (b)
Purchases	177.5		—		—		—		177.5
Sales	(9.7)		—		—		—		(9.7)
Transfers into Level 3 (a)	10.5		—		—		—		10.5
Transfers out of Level 3 (a)	(49.6)		(20.5)		—		—		(70.1)
End of period	$	585.5	$	74.2	$	—	$	2.6	$	662.3

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(2.0)	$	0.3	$	—	$	—	$	(1.7)
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	3.9	$	—	$	—	$	—	$	3.9

_________

(a)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.

(b)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 September 30, 2025.

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 nine months ended September 30, 2025 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	155.9	$	73.4	$	—	$	95.4	$	324.7
Gains (losses) included in net income	(0.3)		0.8		—		—		0.5
Gains (losses) included in accumulated other comprehensive loss	1.2		—		—		—		1.2
Purchases, sales, issuances and settlements (b)
Purchases	420.0		—		—		—		420.0
Sales	(24.0)		—		—				(24.0)
Transfers into Level 3 (a)	89.8		—		—		—		89.8
Transfers out of Level 3 (a)	(57.1)		—		—		(92.8)		(149.9)
End of period	$	585.5	$	74.2	$	—	$	2.6	$	662.3

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(0.3)	$	0.9	$	—	$	—	$	0.6
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—

_________

(a)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.

(b)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 nine months ended September 30, 2025.

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 September 30, 2024 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	153.5	$	72.8	$	2.8	$	66.0	$	295.1
Gains (losses) included in net income	(2.4)		0.6		—		0.4		(1.4)
Gains (losses) included in accumulated other comprehensive loss	6.6		—		—		—		6.6
Purchases, sales, issuances and settlements (b)
Purchases	12.3		—		—		10.6		22.9
Sales	(12.0)		—		—		(1.0)		(13.0)
Transfers into Level 3 (a)	12.4		—		—		—		12.4
Transfers out of Level 3 (a)	(14.3)		—		(2.8)		—		(17.1)
End of period	$	156.1	$	73.4	$	—	$	76.0	$	305.5

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	0.1	$	0.5	$	—	$	0.4	$	1.0
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	5.8	$	—	$	—	$	—	$	5.8

_________

(a)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.

(b)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 September 30, 2024.

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 nine months ended September 30, 2024 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	197.9	$	72.7	$	—	$	31.5	$	302.1
Gains (losses) included in net income	1.9		0.7		—		12.3		14.9
Gains (losses) included in accumulated other comprehensive loss	(1.9)		—		—		—		(1.9)
Purchases, sales, issuances and settlements (b)
Purchases	17.8		—		—		30.0		47.8
Sales	(21.1)		—		—		(5.3)		(26.4)
Transfers into Level 3 (a)	—		—		—		7.5		7.5
Transfers out of Level 3 (a)	(38.5)		—		—		—		(38.5)
End of period	$	156.1	$	73.4	$	—	$	76.0	$	305.5

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	4.4	$	0.8	$	—	$	12.3	$	17.5
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	(4.4)	$	—	$	—	$	—	$	(4.4)

_________

(a)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.

(b)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 nine months ended September 30, 2024.

Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses during the time the applicable financial instruments were classified as Level 3. Realized and unrealized gains (losses) on Level 3 assets are primarily reported in either net investment income for policyholder and other special-purpose portfolios or investment gains (losses) within the consolidated statement of operations; or accumulated other comprehensive loss within shareholders' equity based on the appropriate accounting treatment for the instrument. The amount presented for gains (losses) included in our net income for assets held as of the reporting date primarily represents: (i) the change in the allowance for credit losses for fixed maturities, available for sale; and (ii) changes in fair value of equity securities and trading securities that are held as of the reporting date. The amount presented for gains (losses) included in other comprehensive loss for assets held as of the reporting date primarily represents changes in the fair value of fixed maturities, available for sale, that are held as of the reporting date.

At September 30, 2025, 91 percent of our Level 3 fixed maturities, available for sale, were investment grade and 82 percent of our Level 3 fixed maturities, available for sale, consisted of corporate securities.

The following table summarizes changes in the value of our embedded derivatives associated with fixed indexed annuity products (classified in policyholder account balances and future policy benefits 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				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Balance at beginning of the period	$	1,502.4	$	1,418.0	$	1,471.6	$	1,376.7
Premiums less benefits	(7.4)		(19.4)		(23.4)		(56.3)
Change in fair value, net	103.4		153.3		150.2		231.5
Balance at end of the period	$	1,598.4	$	1,551.9	$	1,598.4	$	1,551.9

The change in fair value, net for each period in our embedded derivatives is included in the insurance policy benefits line item in the consolidated statement of operations.

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 September 30, 2025 (dollars in millions):

Fair value at September 30, 2025

Valuation techniques

Unobservable inputs

Range (weighted average) (a)

Assets:

Asset-backed securities (b)

$

7.8

Discounted cash flow analysis

Discount margins

1.66%

Asset-backed securities (c)

3.7

Recovery method

% Recovery expected

65.89%

Equity securities (d)

65.0

Market comparables

EBITDA multiples

10.4X

Total assets

$

76.5

Liabilities:

Market risk benefit liability (e)

$

52.6

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

0.09% - 0.31% (N/A)

Embedded derivatives related to fixed indexed annuity products (f)

1,598.4

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

$

1,651.0

________________________________

(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 a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement.

(c) Asset-backed securities - The significant unobservable input used in the fair value measurement of these corporate 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 and GLWB utilization. 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.

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 December 31, 2024 (dollars in millions):

Fair value at December 31, 2024

Valuation techniques

Unobservable inputs

Range (weighted average) (a)

Assets:

Asset-backed securities (b)

$

8.1

Discounted cash flow analysis

Discount margins

1.49%

Asset-backed securities (c)

4.1

Recovery method

% Recovery expected

71.3%

Equity securities (d)

64.2

Market comparables

EBITDA multiples

14.0X

Total assets

$

76.4

Liabilities:

Market risk benefit liability (e)

$

60.0

Discounted cash flow analysis

Surrender rates

0.45% - 14.00% (2.09%)

Partial withdrawal rates

0.00% - 3.00% (0.63%)

Mortality

0.03% - 38.41% (4.64%)

GLWB utilization

5.92% - 47.62% (24.95%)

Non-performance risk spread

0.09% - 0.35% (N/A)

Embedded derivatives related to fixed indexed annuity products (f)

1,471.6

Discounted projected embedded derivatives

Surrender rates

0.45% - 25.60% (5.81%)

Partial withdrawal rates

0.00% - 4.50% (2.61%)

Mortality

0.03% - 38.41% (4.12%)

GLWB utilization

5.92% - 47.62% (24.95%)

Option budget

0.90% - 3.37% (2.57%)

Non-performance risk spread

0.09% - 0.35% (N/A)

Total liabilities

$

1,531.6

________________________________

(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 a riskless market yield. Significant increases (decreases) in discount margin in isolation would have resulted in a significantly lower (higher) fair value measurement.

(c) Asset-backed securities - The significant unobservable input used in the fair value measurement of these corporate 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 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 and GLWB utilization. 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.

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


	September 30, 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	$	—	$	—	$	2,943.1	$	2,943.1	$	3,042.7
Policy loans	—		—		141.2		141.2		141.2
Other invested assets:
Company-owned life insurance (a)	—		413.6		—		413.6		413.6
Cash and cash equivalents:
Unrestricted	1,218.3		—		—		1,218.3		1,218.3
Held by variable interest entities	23.3		—		—		23.3		23.3
Total	$	1,241.6	$	413.6	$	3,084.3	$	4,739.5	$	4,839.1

Liabilities:
Policyholder account balances (b)	$	—	$	—	$	16,691.9	$	16,691.9	$	16,691.9
Investment borrowings	—		2,443.3		—		2,443.3		2,441.7
Borrowings related to variable interest entities	—		277.4		—		277.4		274.3
Notes payable – direct corporate obligations	—		1,374.0		—		1,374.0		1,335.2
Total	$	—	$	4,094.7	$	16,691.9	$	20,786.6	$	20,743.1

_________

(a)Includes $220.3 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 2024 Form 10-K, and a $193.3 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, 2024
	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	$	—	$	—	$	2,376.0	$	2,376.0	$	2,506.3
Policy loans	—		—		135.3		135.3		135.3
Other invested assets:
Company-owned life insurance (a)	—		402.1		—		402.1		402.1
Cash and cash equivalents:
Unrestricted	1,656.7		—		—		1,656.7		1,656.7
Held by variable interest entities	341.0		—		—		341.0		341.0
Total	$	1,997.7	$	402.1	$	2,511.3	$	4,911.1	$	5,041.4

Liabilities:
Policyholder account balances (b)	$	—	$	—	$	16,122.6	$	16,122.6	$	16,122.6
Investment borrowings	—		2,189.8		—		2,189.8		2,188.8
Borrowings related to variable interest entities	—		499.0		—		499.0		497.6
Notes payable – direct corporate obligations	—		1,837.9		—		1,837.9		1,833.5
Total	$	—	$	4,526.7	$	16,122.6	$	20,649.3	$	20,642.5

_________

(a)Includes $212.6 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 2024 Form 10-K, and a $189.5 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

LIABILITIES FOR INSURANCE PRODUCTS

9 Months Ended

Sep. 30, 2025

Insurance [Abstract]

LIABILITIES FOR INSURANCE PRODUCTS

The liability for future policy benefits is determined based on numerous assumptions. The most significant assumptions for our life and annuity business are based on our experience and, in cases of limited experience, industry experience. Mortality and lapse/withdrawal rates also take into consideration future expectations in policyholder behavior that may vary from past experience. For our health business, mortality rates, lapse rates, morbidity assumptions and future rate increases are based on our experience and, in cases of limited experience, industry experience. Such assumptions also consider future expectations in policyholder behavior that may vary from past experience.

In the third quarter of 2025 and 2024, we reviewed our actual experience and updated our assumptions for future cash flows. The impact of updating these assumptions is reflected in the "Effect of changes in cash flow assumptions" line items in the tables below.

The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the nine months ended September 30, 2025 (dollars in millions):


	Supplemental health		Medicare supplement		Long-term care		Traditional life		Other annuities		Total
Present value of expected net premiums ("PVENP"), beginning of period	$	2,643.9	$	3,161.9	$	1,102.8	$	2,203.9	$	—	$	9,112.5
Effect of changes in discount rate assumptions, beginning of period	180.0		195.2		25.7		113.5		—		514.4
Beginning PVENP at original discount rate	2,823.9		3,357.1		1,128.5		2,317.4		—		9,626.9
Effect of changes in cash flow assumptions	(63.2)		182.7		31.0		2.3		—		152.8
Effect of actual variances from expected experience	(54.6)		44.2		(28.3)		(89.5)		—		(128.2)
Adjusted beginning of period PVENP	2,706.1		3,584.0		1,131.2		2,230.2		—		9,651.5
Issuances	230.3		354.3		135.4		297.2		5.1		1,022.3
Interest accrual	91.7		109.0		40.1		71.0		—		311.8
Net premiums collected	(264.7)		(345.7)		(124.7)		(298.2)		(5.1)		(1,038.4)
Ending PVENP at original discount rate	2,763.4		3,701.6		1,182.0		2,300.2		—		9,947.2
Effect of changes in discount rate assumptions, end of period	(96.8)		(104.8)		7.1		(40.9)		—		(235.4)
PVENP, end of period	$	2,666.6	$	3,596.8	$	1,189.1	$	2,259.3	$	—	$	9,711.8


Present value of expected future policy benefits ("PVEFPB"), beginning of period	$	5,828.2	$	3,375.6	$	4,240.1	$	4,570.6	$	264.5	$	18,279.0
Effect of changes in discount rate assumptions, beginning of period	516.6		211.5		94.1		333.3		16.2		1,171.7
Beginning PVEFPB at original discount rate	6,344.8		3,587.1		4,334.2		4,903.9		280.7		19,450.7
Effect of changes in cash flow assumptions	(87.2)		192.0		25.8		1.8		(2.8)		129.6
Effect of actual variances from expected experience	(61.8)		51.0		(42.6)		(111.7)		2.4		(162.7)
Adjusted beginning of period PVEFPB	6,195.8		3,830.1		4,317.4		4,794.0		280.3		19,417.6
Issuances	233.6		354.5		135.5		302.2		5.1		1,030.9
Interest accrual	218.6		116.6		171.4		158.0		9.6		674.2
Benefit payments	(319.0)		(379.6)		(219.3)		(348.6)		(22.1)		(1,288.6)
Ending PVEFPB at original discount rate	6,329.0		3,921.6		4,405.0		4,905.6		272.9		19,834.1
Effect of changes in discount rate assumptions, end of period	(317.0)		(113.6)		26.5		(180.0)		(9.0)		(593.1)
PVEFPB, end of period	$	6,012.0	$	3,808.0	$	4,431.5	$	4,725.6	$	263.9	$	19,241.0


Net liability for future policy benefits	$	3,345.4	$	211.2	$	3,242.4	$	2,466.3	$	263.9	$	9,529.2
Flooring impact	—		0.9		—		—		—		0.9
Adjusted net liability for future policy benefits	3,345.4		212.1		3,242.4		2,466.3		263.9		9,530.1
Related reinsurance recoverable	(1.7)		—		(386.5)		(162.3)		—		(550.5)
Net liability for future policy benefits, net of reinsurance recoverable	$	3,343.7	$	212.1	$	2,855.9	$	2,304.0	$	263.9	$	8,979.6


Adjusted net liability for future policy benefits	$	9,530.1
Reserves excluded from rollforward (a)	2,351.3
Deferred liability	69.2
Future loss reserves (b)	24.9
Future policy benefits	$	11,975.5

(a) Primarily comprised of blocks of business that are 100% ceded.

(b) In certain instances for interest-sensitive products, the total insurance liabilities for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (the "future loss reserve") be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years.

The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the nine months ended September 30, 2024 (dollars in millions):


	Supplemental health		Medicare supplement		Long-term care		Traditional life		Other annuities		Total
PVENP, beginning of period	$	2,718.2	$	3,009.1	$	1,055.6	$	2,279.6	$	—	$	9,062.5
Effect of changes in discount rate assumptions, beginning of period	86.8		99.2		(7.6)		67.6		—		246.0
Beginning PVENP at original discount rate	2,805.0		3,108.3		1,048.0		2,347.2		—		9,308.5
Effect of changes in cash flow assumptions	(28.4)		85.2		9.6		(20.1)		—		46.3
Effect of actual variances from expected experience	11.7		10.6		(8.9)		(55.3)		—		(41.9)
Adjusted beginning of period PVENP	2,788.3		3,204.1		1,048.7		2,271.8		—		9,312.9
Issuances	202.1		243.5		145.0		292.6		4.4		887.6
Interest accrual	92.7		98.5		39.6		73.4		—		304.2
Net premiums collected	(260.3)		(337.3)		(119.9)		(303.3)		(4.4)		(1,025.2)
Ending PVENP at original discount rate	2,822.8		3,208.8		1,113.4		2,334.5		—		9,479.5
Effect of changes in discount rate assumptions, end of period	(57.3)		(64.8)		17.1		(35.6)		—		(140.6)
PVENP, end of period	$	2,765.5	$	3,144.0	$	1,130.5	$	2,298.9	$	—	$	9,338.9


PVEFPB, beginning of period	$	6,023.3	$	3,236.6	$	4,364.6	$	4,694.7	$	308.9	$	18,628.1
Effect of changes in discount rate assumptions, beginning of period	229.8		108.3		(132.8)		170.9		3.0		379.2
Beginning PVEFPB at original discount rate	6,253.1		3,344.9		4,231.8		4,865.6		311.9		19,007.3
Effect of changes in cash flow assumptions	(39.2)		95.2		8.2		(20.7)		—		43.5
Effect of actual variances from expected experience	16.4		11.3		(23.2)		(65.7)		(16.5)		(77.7)
Adjusted beginning of period PVEFPB	6,230.3		3,451.4		4,216.8		4,779.2		295.4		18,973.1
Issuances	202.5		239.9		145.2		298.0		4.5		890.1
Interest accrual	218.4		106.3		171.0		159.4		10.3		665.4
Benefit payments	(329.1)		(360.2)		(222.0)		(336.7)		(23.9)		(1,271.9)
Ending PVEFPB at original discount rate	6,322.1		3,437.4		4,311.0		4,899.9		286.3		19,256.7
Effect of changes in discount rate assumptions, end of period	(172.8)		(71.5)		159.0		(113.7)		(1.3)		(200.3)
PVEFPB, end of period	$	6,149.3	$	3,365.9	$	4,470.0	$	4,786.2	$	285.0	$	19,056.4


Net liability for future policy benefits	$	3,383.8	$	221.9	$	3,339.5	$	2,487.3	$	285.0	$	9,717.5
Flooring impact	—		0.5		—		—		—		0.5
Adjusted net liability for future policy benefits	3,383.8		222.4		3,339.5		2,487.3		285.0		9,718.0
Related reinsurance recoverable	(1.5)		—		(384.6)		(178.7)		—		(564.8)
Net liability for future policy benefits, net of reinsurance recoverable	$	3,382.3	$	222.4	$	2,954.9	$	2,308.6	$	285.0	$	9,153.2


Adjusted net liability for future policy benefits	$	9,718.0
Reserves excluded from rollforward (a)	2,445.4
Deferred liability	67.4
Future loss reserves (b)	27.4
Future policy benefits	$	12,258.2

(a) Primarily comprised of blocks of business that are 100% ceded.

(b) In certain instances for interest-sensitive products, the total insurance liabilities for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (the "future loss reserve") be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years.

Many of our fixed indexed annuity products include a GLWB that is considered a MRB. The calculation of MRBs includes market assumptions (interest rate, equity returns, volatility and dividend yields) and nonmarket assumptions (mortality rates, surrender and withdrawal rates, GLWB utilization and spreads). Market assumptions are updated quarterly to reflect current market conditions.

In the third quarter of 2025 and 2024, we reviewed our nonmarket assumptions used to calculate the MRBs and determined updates were warranted. The impact of updating these assumptions is reflected in the “Effect of changes in future expected policyholder behavior” line items in the table below.

The following table presents the balance of and changes in MRBs associated with our fixed indexed annuities (dollars in millions):


	Nine months ended
	September 30,
	2025		2024
Net liability (asset), beginning of period	$	60.0	$	117.1
Effect of changes in the instrument-specific credit risk, beginning of period	1.4		4.8
Balance, beginning of period, before effect of changes in the instrument-specific credit risk	61.4		121.9
Issuances	3.4		3.2
Interest accrual	2.0		3.6


Effect of changes in interest rates	0.9		(13.6)
Effect of changes in equity markets	(0.3)		(0.4)
Effect of changes in equity index volatility	2.2		2.4
Actual policyholder behavior different from expected behavior	(0.6)		(0.9)
Effect of changes in future expected policyholder behavior - other	(13.3)		(36.3)
Effect of changes in future expected policyholder behavior - risk margin	0.1		0.2
Effect of changes in assumptions	(2.4)		(3.9)
Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk	53.4		76.2
Effect of changes in the instrument-specific credit risk, end of period	(0.8)		(2.1)


Net liability (asset), end of period, net of reinsurance	$	52.6	$	74.1

Balance reported as an asset	$	—	$	—
Balance reported as a liability	52.6		74.1
Net liability (asset)	$	52.6	$	74.1

Net amount at risk	$	22.1	$	27.6
Weighted average attained age of contract holders	70		69

The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the consolidated statement of operations (dollars in millions):


	Gross premiums (a)				Interest accretion (b)
	Nine months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Other annuities	$	6.0	$	4.9	$	9.6	$	10.3
Supplemental health	554.0		542.3		126.9		125.7
Medicare supplement	465.4		461.6		7.6		7.8
Long-term care	264.8		255.0		131.3		131.4
Traditional life	551.6		544.0		87.0		86.0
Total	$	1,841.8	$	1,807.8	$	362.4	$	361.2

_____________________

(a) Such amounts are included in insurance policy income in the consolidated statement of operations.

(b) Such amounts are included in insurance policy benefits in the consolidated statement of operations.

The following table provides the amount of undiscounted and discounted expected future gross premiums and expected future benefits and expenses for traditional and limited-payment contracts (dollars in millions):


	September 30, 2025				September 30, 2024
	Undiscounted		Discounted (a)		Undiscounted		Discounted (a)
Other annuity
Expected future gross premiums	$	—	$	—	$	—	$	—
Expected future benefits and expenses	312.8		263.9		337.6		285.0
Supplemental health
Expected future gross premiums	9,098.7		5,687.4		8,980.6		5,726.1
Expected future benefits and expenses	10,781.4		6,012.0		10,901.9		6,149.3
Medicare supplement
Expected future gross premiums	6,930.0		4,753.6		5,968.3		4,244.2
Expected future benefits and expenses	5,565.5		3,808.0		4,758.4		3,365.9
Long-term care
Expected future gross premiums	3,648.8		2,564.4		3,462.8		2,486.9
Expected future benefits and expenses	8,100.0		4,431.5		7,881.2		4,470.0
Traditional life
Expected future gross premiums	5,804.4		4,231.0		5,654.8		4,162.6
Expected future benefits and expenses	7,680.7		4,725.6		7,631.0		4,786.2

_____________________

(a) Calculated at the discount rates at period end.

Loss expense as a result of net premium ratio capping was not material for the nine months ended September 30, 2025 and 2024.

The following table provides the weighted average durations (under locked-in rates) of the liability for future policy benefits in years:


	September 30, 2025	September 30, 2024
Other annuity	9.5	9.6
Supplemental health	10.7	11.1
Medicare supplement	5.5	6.2
Long-term care	10.7	10.7
Traditional life	10.1	10.3

The following table provides the weighted average interest rates for the liability for future policy benefits:


	September 30, 2025		September 30, 2024
Other annuities
Interest accretion rate	4.87	%	4.81	%
Current discount rate	5.32	%	4.99	%
Supplemental health
Interest accretion rate	4.96	%	4.98	%
Current discount rate	5.26	%	4.97	%
Medicare supplement
Interest accretion rate	4.33	%	4.30	%
Current discount rate	4.93	%	4.74	%
Long-term care
Interest accretion rate	5.64	%	5.67	%
Current discount rate	5.35	%	5.03	%
Traditional life
Interest accretion rate	4.80	%	4.77	%
Current discount rate	5.30	%	5.00	%

The following tables present the balances of and changes in the liability for policyholder account balances (dollars in millions):


	Nine months ended
	September 30, 2025
	Fixed indexed annuities		Fixed interest annuities		Other annuities		Interest-sensitive life (a)		Funding agreements		Other (b)		Total
Policyholder account values, beginning of period excluding contracts 100% ceded	$	10,766.3	$	1,646.6	$	107.4	$	1,321.8	$	3,021.2	$	359.1	$	17,222.4
Issuances (funds collected from new business)	1,265.4		142.2		—		32.8		350.0		—		1,790.4
Premiums received (premiums collected from inforce business)	17.9		1.9		22.8		164.0		—		198.9		405.5
Policy charges	(20.6)		(1.4)		—		(150.4)		—		—		(172.4)
Surrenders and withdrawals	(670.5)		(117.6)		(22.7)		(27.7)		(473.8)		(210.0)		(1,522.3)
Benefit payments	(219.8)		(74.9)		(4.3)		(18.8)		—		—		(317.8)
Interest credited	248.3		38.2		2.0		48.3		82.2		1.8		420.8
Other	46.1		0.1		(0.3)		(0.2)		—		—		45.7
Policyholder account values, end of period excluding contracts 100% ceded	11,433.1		1,635.1		104.9		1,369.8		2,979.6		349.8		17,872.3
Policyholder account values, end of period for contracts 100% ceded	115.1		503.8		30.3		93.3		—		9.9		752.4
Amount of reserves above (below) policyholder account values (c)	(352.9)		—		—		18.5		—		—		(334.4)
Balance, end of period	$	11,195.3	$	2,138.9	$	135.2	$	1,481.6	$	2,979.6	$	359.7	$	18,290.3

Balance, end of period, reinsurance ceded	(109.9)		(503.8)		(30.3)		(111.0)		—		(22.8)		(777.8)
Balance, end of period, net of reinsurance	$	11,085.4	$	1,635.1	$	104.9	$	1,370.6	$	2,979.6	$	336.9	$	17,512.5



Weighted average crediting rate (d)	2.2	%	3.1	%	2.7	%	5.2	%	4.2	%	0.8	%



Cash surrender value, net of reinsurance	$	10,688.5	$	1,586.6	$	104.9	$	1,122.7	$	—	$	336.9

_______________

(a) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $30.7 billion at the balance sheet date.

(b) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks.

(c) Such amount represents the difference between: (i) the total insurance liabilities for our fixed indexed products (including the host contract and the related embedded derivative); and (ii) the policyholder account balances for these products. The accounting requirement to bifurcate the embedded derivative and value it at the current estimated fair value results in this amount.

(d) Excludes any impact from the amount of reserves above (below) policyholder account balances.


	Nine months ended
	September 30, 2024
	Fixed indexed annuities		Fixed interest annuities		Other annuities		Interest-sensitive life (a)		Funding agreements		Other (b)		Total
Policyholder account values, beginning of period excluding contracts 100% ceded	$	9,999.2	$	1,636.4	$	113.1	$	1,255.2	$	1,411.0	$	381.0	$	14,795.9
Issuances (funds collected from new business)	1,132.6		155.9		—		30.7		1,149.4		—		2,468.6
Premiums received (premiums collected from inforce business)	1.3		2.5		24.4		158.3		—		206.9		393.4
Policy charges	(23.2)		(1.0)		—		(146.7)		—		—		(170.9)
Surrenders and withdrawals	(706.5)		(134.4)		(24.5)		(26.4)		(24.2)		(225.6)		(1,141.6)
Benefit payments	(219.5)		(81.0)		(4.4)		(17.4)		—		—		(322.3)
Interest credited	244.1		34.7		1.6		47.9		37.5		1.9		367.7
Other	40.0		(0.4)		(0.4)		(0.4)		—		—		38.8
Policyholder account values, end of period excluding contracts 100% ceded	10,468.0		1,612.7		109.8		1,301.2		2,573.7		364.2		16,429.6
Policyholder account values, end of period for contracts 100% ceded	126.8		547.7		26.2		99.9		—		10.3		810.9
Amount of reserves above (below) policyholder account values (c)	(272.7)		—		—		24.6		—		—		(248.1)
Policyholder account balance, end of period	$	10,322.1	$	2,160.4	$	136.0	$	1,425.7	$	2,573.7	$	374.5	$	16,992.4

Balance, end of period, reinsurance ceded	(126.8)		(547.7)		(26.2)		(118.0)		—		(23.7)		(842.4)
Balance, end of period, net of reinsurance	$	10,195.3	$	1,612.7	$	109.8	$	1,307.7	$	2,573.7	$	350.8	$	16,150.0



Weighted average crediting rate (d)	2.1	%	2.8	%	2.5	%	4.9	%	3.5	%	0.8	%



Cash surrender value, net of reinsurance	$	9,772.1	$	1,578.0	$	109.8	$	1,055.5	$	—	$	350.8

_________________

(a) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $29.2 billion at the balance sheet date.

(b) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks.

(c) Such amount represents the difference between: (i) the total insurance liabilities for our fixed indexed products (including the host contract and the related embedded derivative); and (ii) the policyholder account balances for these products. The accounting requirement to bifurcate the embedded derivative and value it at the current estimated fair value results in this amount.

(d) Excludes any impact from the amount of reserves above (below) policyholder account balances.

The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (dollars in millions):


	September 30, 2025
Range of guaranteed minimum crediting rates (a)	At guaranteed minimum		1-50 basis points above		51-150 basis points above		Greater than 150 basis points above		Total
Fixed interest annuities
0.00%-2.99%	$	85.7	$	182.7	$	331.0	$	74.0	$	673.4
3.00%-4.99%	1,187.9		96.7		91.3		11.5		1,387.4
5.00% and greater	78.1		—		—		—		78.1
Subtotal	1,351.7		279.4		422.3		85.5		2,138.9
Other annuities
0.00%-2.99%	23.7		21.1		—		—		44.8
3.00%-4.99%	57.0		—		—		—		57.0
5.00% and greater	33.4		—		—		—		33.4
Subtotal	114.1		21.1		—		—		135.2
Interest-sensitive life
0.00%-2.99%	17.6		—		0.5		756.0		774.1
3.00%-4.99%	361.1		111.0		194.4		2.1		668.6
5.00% and greater	20.2		0.2		—		—		20.4
Subtotal	398.9		111.2		194.9		758.1		1,463.1
Other
0.00%-2.99%	16.0		322.7		—		—		338.7
3.00%-4.99%	20.7		—		—		—		20.7
5.00% and greater	0.3		—		—		—		0.3
Subtotal	37.0		322.7		—		—		359.7
Total
0.00%-2.99%	143.0		526.5		331.5		830.0		1,831.0
3.00%-4.99%	1,626.7		207.7		285.7		13.6		2,133.7
5.00% and greater	132.0		0.2		—		—		132.2
Total policyholder account balances, excluding fixed indexed annuities	$	1,901.7	$	734.4	$	617.2	$	843.6	$	4,096.9
Fixed indexed annuity account balances									11,548.2
Funding agreements									2,979.6
Total policyholder account values									18,624.7
Amount of reserves above (below) policyholder account values									(334.4)
Total policyholder account balances									$	18,290.3

____________________

(a) Excludes the account balances related to: (i) fixed indexed annuity contracts that include an index fund component, with index credits tied to the performance of the index. The minimum guarantee is determined by a participation or cap rate

linked to an index, such as the Standard & Poor’s 500 index, rather than a predetermined rate of return; and (ii) funding agreements which have a fixed crediting rate.


	September 30, 2024
Range of guaranteed minimum crediting rates (a)	At guaranteed minimum		1-50 basis points above		51-150 basis points above		Greater than 150 basis points above		Total
Fixed interest annuities
0.00%-2.99%	$	96.0	$	203.5	$	232.8	$	81.0	$	613.3
3.00%-4.99%	1,286.9		49.4		108.4		20.9		1,465.6
5.00% and greater	81.5		—		—		—		81.5
Subtotal	1,464.4		252.9		341.2		101.9		2,160.4
Other annuities
0.00%-2.99%	33.9		23.5		—		—		57.4
3.00%-4.99%	45.4		—		—		—		45.4
5.00% and greater	33.2		—		—		—		33.2
Subtotal	112.5		23.5		—		—		136.0
Interest-sensitive life
0.00%-2.99%	14.3		—		0.5		701.8		716.6
3.00%-4.99%	438.1		49.0		175.0		1.0		663.1
5.00% and greater	20.9		0.5		—		—		21.4
Subtotal	473.3		49.5		175.5		702.8		1,401.1
Other
0.00%-2.99%	16.8		334.9		—		—		351.7
3.00%-4.99%	22.6		—		—		—		22.6
5.00% and greater	0.2		—		—		—		0.2
Subtotal	39.6		334.9		—		—		374.5
Total
0.00%-2.99%	161.0		561.9		233.3		782.8		1,739.0
3.00%-4.99%	1,793.0		98.4		283.4		21.9		2,196.7
5.00% and greater	135.8		0.5		—		—		136.3
Total policyholder account balances, excluding fixed indexed annuities	$	2,089.8	$	660.8	$	516.7	$	804.7	$	4,072.0
Fixed indexed annuity account balances									10,594.8
Funding agreements									2,573.7
Total policyholder account values									17,240.5
Amount of reserves above (below) policyholder account values									(248.1)
Total policyholder account balances									$	16,992.4

____________________

(a) Excludes the account balances related to: (i) fixed indexed annuity contracts that include an index fund component, with index credits tied to the performance of the index. The minimum guarantee is determined by a participation or cap rate

linked to an index, such as the Standard & Poor’s 500 index, rather than a predetermined rate of return; and (ii) funding agreements which have a fixed crediting rate.

DEFERRED ACQUISITION COSTS, PRESENT VALUE OF FUTURE PROFITS AND SALES INDUCEMENTS

9 Months Ended

Sep. 30, 2025

Deferred Charges, Insurers [Abstract]

DEFERRED ACQUISITION COSTS, PRESENT VALUE OF FUTURE PROFITS AND SALES INDUCEMENTS

Changes in deferred acquisition costs were as follows (dollars in millions):


	Nine months ended
	September 30, 2025
	Fixed indexed annuities		Fixed interest annuities		Supplemental health		Medicare supplement		Long-term care		Interest-sensitive life		Traditional life		Funding agreements		Total
Beginning of period	$	450.0	$	35.9	$	438.1	$	157.4	$	148.6	$	256.0	$	529.5	$	9.9	$	2,025.4
Capitalizations	81.7		9.1		53.7		21.7		22.6		28.1		111.4		1.8		330.1
Amortization expense	(47.8)		(4.8)		(27.9)		(18.6)		(11.7)		(12.5)		(51.1)		(2.4)		(176.8)
End of period	$	483.9	$	40.2	$	463.9	$	160.5	$	159.5	$	271.6	$	589.8	$	9.3	$	2,178.7


	Nine months ended
	September 30, 2024
	Fixed indexed annuities		Fixed interest annuities		Supplemental health		Medicare supplement		Long-term care		Interest-sensitive life		Traditional life		Funding agreements		Total
Beginning of period	$	407.6	$	27.0	$	408.0	$	157.5	$	140.3	$	234.5	$	471.9	$	4.5	$	1,851.3
Capitalizations	72.7		9.4		47.2		19.3		16.2		28.0		88.1		5.5		286.4
Amortization expense	(41.7)		(3.6)		(25.7)		(19.9)		(11.0)		(11.6)		(44.3)		(1.5)		(159.3)
End of period	$	438.6	$	32.8	$	429.5	$	156.9	$	145.5	$	250.9	$	515.7	$	8.5	$	1,978.4

Changes in the present value of future profits were as follows (dollars in millions):


	Nine months ended
	September 30, 2025
	Supplemental health		Medicare supplement		Long-term care		Traditional life		Fixed indexed annuities		Fixed interest annuities		Total
Beginning of period	$	128.8	$	15.7	$	4.4	$	11.3	$	0.5	$	0.3	$	161.0

Amortization expense	(8.7)		(2.8)		(0.5)		(1.1)		—		(0.1)		(13.2)
End of period	$	120.1	$	12.9	$	3.9	$	10.2	$	0.5	$	0.2	$	147.8


	Nine months ended
	September 30, 2024
	Supplemental health		Medicare supplement		Long-term care		Traditional life		Fixed indexed annuities		Fixed interest annuities		Total
Beginning of period	$	141.0	$	20.6	$	5.2	$	12.9	$	0.7	$	0.3	$	180.7

Amortization expense	(9.3)		(3.8)		(0.6)		(1.2)		(0.1)		—		(15.0)
End of period	$	131.7	$	16.8	$	4.6	$	11.7	$	0.6	$	0.3	$	165.7

Changes in sales inducements were as follows (dollars in millions):


	Nine months ended
	September 30, 2025
	Fixed indexed annuities		Fixed interest annuities		Total
Beginning of period	$	128.1	$	5.1	$	133.2
Capitalizations	45.8		1.9		47.7
Amortization expense	(15.1)		(0.8)		(15.9)
End of period	$	158.8	$	6.2	$	165.0


	Nine months ended
	September 30, 2024
	Fixed indexed annuities		Fixed interest annuities		Total
Beginning of period	$	88.5	$	4.6	$	93.1
Capitalizations	40.1		0.9		41.0
Amortization expense	(10.9)		(0.7)		(11.6)
End of period	$	117.7	$	4.8	$	122.5

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2025

Earnings Per Share [Abstract]

EARNINGS PER SHARE

A reconciliation of net income and shares used to calculate basic and diluted earnings per share is as follows (dollars in millions and shares in thousands):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Net income for basic and diluted earnings per share	$	23.1	$	9.3	$	136.4	$	237.9
Shares:
Weighted average shares outstanding for basic earnings per share	96,603		105,101		98,639		107,265
Effect of dilutive securities on weighted average shares:
Amounts related to employee benefit plans	1,950		2,030		2,031		1,813
Weighted average shares outstanding for diluted earnings per share	98,553		107,131		100,670		109,078

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Restricted shares (including our performance units) are not included in basic earnings per share until vested. Diluted earnings per share reflect the potential dilution that could occur if outstanding stock options were exercised and restricted stock was vested. The dilution from options and restricted shares is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the average market price during the period, reducing the dilutive effect of the exercise of the options (or the vesting of the restricted stock and performance units).

BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

BUSINESS SEGMENTS

We view our operations as three insurance product line segments (annuity, health and life) and the investment and fee income segments. Our segments are aligned based on their common characteristics, comparability of profit margins and the way the CODM makes operating decisions and assesses the performance of the business. Our CODM is the Chief Executive Officer.

Our insurance product line segments (annuity, health and life) include marketing, underwriting and administration of the policies our insurance subsidiaries sell. The business written in each of the three product categories through all of our insurance subsidiaries is aggregated allowing management and investors to assess the performance of each product category. When analyzing profitability of these segments, we use insurance product margin as the measure of profitability, which is: (i) insurance policy income; and (ii) net investment income allocated to the insurance product lines; less (i) insurance policy benefits; (ii) interest credited to policyholders; (iii) amortization of deferred acquisition costs and present value of future profits, non-deferred commissions; and (iv) advertising expense. Net investment income is allocated to the product lines using the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period. Net insurance liabilities for the purpose of allocating investment income to product lines are equal to: (i) policyholder account values for interest sensitive products; (ii) total reserves before the fair value adjustments reflected in accumulated other comprehensive income (loss), if applicable, for all other products; less (iii) amounts related to reinsured business; (iv) deferred acquisition costs; (v) the present value of future profits; and (vi) the value of unexpired options credited to insurance liabilities.

Income from insurance products is the sum of the insurance product margins of the annuity, health and life product lines, less expenses allocated to the insurance product lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes insurance product margin and income from insurance products help provide an additional understanding of the business and a more meaningful analysis of the results of our insurance product lines.

We market our products through the Consumer and Worksite Divisions that reflect the customers served by the Company. The Consumer and Worksite Divisions are primarily focused on marketing insurance products, several types of which are sold in both divisions and underwritten in the same manner.

The Consumer Division serves individual consumers, engaging with them on the phone, virtually, online, face-to-face with agents, or through a combination of sales channels. This structure unifies consumer capabilities into a single division and integrates the strength of our agent sales forces with one of the largest direct-to-consumer insurance businesses with proven experience in advertising, web/digital and call center support.

The Worksite Division focuses on the sale of voluntary benefit life and health insurance products in the workplace for businesses, associations, and other membership groups, interacting with customers at their place of employment and virtually. The Worksite Division also offers employer benefits services that seek to increase benefits engagement and reduce costs for employers and their employees. These services include: benefit administration technology, year-round advocacy, enrollment, benefits compliance and communications services.

The investment segment involves the management of our capital resources, including investments and the management of corporate debt and liquidity. Our measure of profitability of this segment is the total net investment income not allocated to the insurance products. Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense

on notes payable, investment borrowings and financing arrangements; (iv) expenses related to the Bankers Life and Casualty Company ("Bankers Life") funding agreement backed note ("FABN") program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our Federal Home Loan Bank ("FHLB") investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from COLI and alternative investment income not allocated to product lines), net of interest expense on corporate debt and financing arrangements. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the matched assets less: (i) interest on investment borrowings related to the FHLB investment borrowing program; (ii) interest credited on funding agreements; and (iii) amortization of deferred acquisition costs related to the FABN program.

Our fee income segment includes the earnings generated from sales of third-party insurance products (primarily Medicare Advantage), services provided by Optavise, LLC ("Optavise") and the operations of our broker-dealer and registered investment advisor. The resulting fee income metric is the fee income segment's measure of profitability.

Our CODM allocates resources and assesses the performance of each operating segment based on the respective

product line insurance margin, investment income not allocated, and fee income metrics described above.

Expenses not allocated to product lines include the expenses of our corporate operations, excluding interest expense on debt.

We measure segment performance by excluding total investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan, income taxes, costs related to our three-year project to modernize certain elements of our technology ("TechMod"), goodwill and other asset impairment expenses and other non-operating items including earnings attributable to VIEs ("pre-tax operating earnings") because we believe that this performance measure is a better indicator of the ongoing business and trends in our business. Our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of investment gains (losses), and a long-term focus is necessary to maintain profitability over the life of the business.

Investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan and other non-operating items consisting primarily of earnings attributable to VIEs depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments. Investment gains (losses) and changes in fair value of embedded derivative liabilities and MRBs may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business.

Operating information by segment is as follows (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenues:
Annuity:
Insurance policy income	$	10.7	$	11.2	$	28.9	$	27.8
Net investment income	157.7		142.2		461.0		417.2
Total annuity revenues	168.4		153.4		489.9		445.0
Health:
Insurance policy income	416.0		406.9		1,240.5		1,208.9
Net investment income	75.4		75.0		226.4		224.4
Total health revenues	491.4		481.9		1,466.9		1,433.3
Life:
Insurance policy income	231.7		226.9		691.0		678.2
Net investment income	37.8		36.8		113.2		110.0
Total life revenues	269.5		263.7		804.2		788.2
Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances)	98.2		67.6		107.5		246.2
Investment income not allocated to product lines	126.0		127.1		368.0		307.0
Fee revenue and other income:
Fee revenue	33.0		29.3		113.9		111.8
Amounts netted in expenses not allocated to product lines	0.6		0.7		2.8		3.2
Total segment revenues	$	1,187.1	$	1,123.7	$	3,353.2	$	3,334.7

(continued on next page)


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Expenses:
Annuity:
Insurance policy benefits	$	(6.2)	$	(25.9)	$	14.1	$	(23.0)
Interest credited	75.4		65.2		217.1		184.7
Amortization and non-deferred commissions	26.3		23.0		76.5		64.1
Total annuity expenses	95.5		62.3		307.7		225.8
Health:
Insurance policy benefits	293.3		314.1		926.9		924.9
Amortization and non-deferred commissions	41.1		40.0		122.8		121.7
Total health expenses	334.4		354.1		1,049.7		1,046.6
Life:
Insurance policy benefits	142.6		143.5		425.2		432.1
Interest credited	13.2		13.3		40.0		38.2
Amortization and non-deferred commissions	28.3		25.1		81.9		72.9
Advertising expense	14.8		18.5		54.7		64.0
Total life expenses	198.9		200.4		601.8		607.2
Allocated expenses	151.0		153.0		461.6		469.2
Expenses not allocated to product lines	22.9		19.2		70.7		56.0
Market value changes of options credited to fixed indexed annuity and life policyholders	98.2		67.6		107.5		246.2
Amounts netted in investment income not allocated to product lines:
Interest expense	50.8		60.1		158.3		162.8
Interest credited	28.2		19.9		82.2		37.5
Impact of annual option forfeitures related to fixed indexed annuity surrenders	(3.8)		(7.4)		(8.8)		(19.6)
Amortization	0.9		0.7		2.5		1.6
Other expenses	10.4		8.3		22.5		22.1
Expenses netted in fee revenue:
Commissions and other operating expenses	36.9		32.0		117.8		102.4
Total segment expenses	1,024.3		970.2		2,973.5		2,957.8
Pre-tax measure of profitability:
Annuity margin	72.9		91.1		182.2		219.2
Health margin	157.0		127.8		417.2		386.7
Life margin	70.6		63.3		202.4		181.0
Total insurance product margin	300.5		282.2		801.8		786.9
Allocated expenses	(151.0)		(153.0)		(461.6)		(469.2)
Income from insurance products	149.5		129.2		340.2		317.7
Fee income margin	(3.9)		(2.7)		(3.9)		9.4
Investment income not allocated to product lines	39.5		45.5		111.3		102.6
Expenses not allocated to product lines	(22.3)		(18.5)		(67.9)		(52.8)
Operating earnings before taxes	162.8		153.5		379.7		376.9
Income tax expense on operating income	35.6		34.3		83.9		85.6
Net operating income	$	127.2	$	119.2	$	295.8	$	291.3

A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Total segment revenues	$	1,187.1	$	1,123.7	$	3,353.2	$	3,334.7
Total investment gains (losses)	(3.0)		1.2		(28.2)		(8.2)
Revenues related to earnings attributable to VIEs	4.6		4.7		19.3		25.8
Consolidated revenues	1,188.7		1,129.6		3,344.3		3,352.3

Total segment expenses	1,024.3		970.2		2,973.5		2,957.8
Insurance policy benefits - fair value changes in embedded derivative liabilities	18.1		127.1		62.5		46.3
Expenses attributable to VIEs	6.1		9.5		20.6		32.1
Fair value changes related to agent deferred compensation plan	—		3.5		—		—
Expenses related to TechMod initiative	7.2		—		10.4		—
Goodwill and other asset impairment	96.7		—		96.7		—
Other expenses	0.1		8.3		(1.4)		8.3
Consolidated expenses	1,152.5		1,118.6		3,162.3		3,044.5
Income before tax	36.2		11.0		182.0		307.8

Income tax expense	13.1		1.7		45.6		69.9

Net income	$	23.1	$	9.3	$	136.4	$	237.9

Segment balance sheet information is as follows (dollars in millions):


	September 30,		December 31,
	2025		2024
Assets:
Annuity	$	13,741.8	$	13,001.4
Health	9,449.3		9,116.7
Life	4,375.3		4,194.7
Investments not allocated to product lines	10,206.1		10,599.1
Assets of our non-life companies included in the fee income segment	129.8		257.7
Assets of our other non-life companies	393.9		679.7
Total assets	$	38,296.2	$	37,849.3
Liabilities:
Annuity	$	14,284.6	$	13,539.6
Health	9,647.6		9,490.7
Life	4,440.2		4,311.2
Liabilities associated with investments not allocated to product lines (a)	7,030.8		7,541.1
Liabilities of our non-life companies included in the fee income segment	33.7		37.0
Liabilities of our other non-life companies	248.3		414.5
Total liabilities	$	35,685.2	$	35,334.1

___________

(a) Includes investment borrowings, policyholder account balances related to funding agreements, borrowings related to VIEs and notes payable - direct corporate obligations.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

DERIVATIVES

9 Months Ended

Sep. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

Our freestanding and embedded derivatives, which are not designated as hedging instruments, are held at fair value and are summarized as follows (dollars in millions):


	September 30, 2025		December 31, 2024
Assets:
Other invested assets:
Fixed indexed call options	$	297.2	$	279.0

Reinsurance receivables	(15.3)		(17.1)
Total assets	$	281.9	$	261.9
Liabilities:
Embedded derivatives related to fixed indexed annuities at fair value:
Policyholder account balances	$	1,598.4	$	1,471.6

Our fixed indexed annuity products provide a guaranteed minimum rate of return on the fixed fund portion of the contracts and a higher potential return on the index portion of the contract that is based on a percentage (the "participation rate") of the amount of increase in the value of a particular index, such as the Standard & Poor's 500 Index, over a specified period. We are generally able to change the participation rate at the beginning of each index period (typically on each policy anniversary date), subject to contractual minimums. The Company accounts for the options attributed to the policyholder for the estimated life of the contract as embedded derivatives. We are required to record the embedded derivatives related to our fixed indexed annuity products at estimated fair value. These accounting requirements often create volatility in the earnings from these products. We typically buy call options (including call spreads) referenced to the applicable indices in an effort to offset or hedge potential increases to policyholder benefits resulting from increases in the particular index to which the policy's return is linked. The notional amount of these options was $4.4 billion and $4.2 billion at September 30, 2025 and December 31, 2024, respectively.

We are required to establish an embedded derivative related to a modified coinsurance agreement pursuant to which we assume the risks of a block of health insurance business. The embedded derivative represents the mark-to-market adjustment for $71.6 million in underlying investments held by the ceding reinsurer at September 30, 2025.

We purchase certain fixed maturity securities that contain embedded derivatives that are required to be held at fair value on the consolidated balance sheet. In these instances, we generally elect the fair value option to carry these securities at fair value with changes in fair value recognized in net income.

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 ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Net investment income (loss) from policyholder and other special-purpose portfolios:
Fixed indexed call options	$	98.3	$	67.2	$	108.7	$	246.3
Total investment gains (losses):
Embedded derivative related to modified coinsurance agreement	0.5		1.7		1.8		1.9
Total revenues from derivative instruments, not designated as hedges	98.8		68.9		110.5		248.2
Insurance policy benefits:
Embedded derivatives related to fixed indexed annuities	103.4		153.2		150.2		231.4
Net pre-tax impact	$	(4.6)	$	(84.3)	$	(39.7)	$	16.8

Derivative Counterparty Risk

If the counterparties to the call options fail to meet their obligations, we may recognize a loss. We limit our exposure to such a loss by diversifying among several counterparties believed to be strong and creditworthy. At September 30, 2025, all of our counterparties were rated "A" or higher by S&P Global Ratings ("S&P").

The Company and its subsidiaries are parties to master netting arrangements with its counterparties related to entering into various derivative contracts.

The following table summarizes information related to derivatives with master netting arrangements or collateral as of September 30, 2025 and December 31, 2024 (dollars in millions):


								Gross amounts not offset in the balance sheet
		Gross amounts recognized		Gross amounts offset in the balance sheet		Net amounts of assets presented in the balance sheet		Non-cash collateral		Cash collateral received		Net amount
September 30, 2025:
	Fixed indexed call options	$	297.2	$	—	$	297.2	$	40.0	$	—	$	257.2
December 31, 2024:
	Fixed indexed call options	279.0		—		279.0		78.0		—		201.0

THIRD-PARTY REINSURANCE	9 Months Ended
THIRD-PARTY REINSURANCE	Sep. 30, 2025
Insurance [Abstract]
THIRD-PARTY REINSURANCE	THIRD-PARTY REINSURANCE Ceded premiums and other costs of ceding business to reinsurers totaled $41.0 million and $46.2 million for the three months ended September 30, 2025 and 2024, respectively, and $125.3 million and $138.8 million for the nine months ended September 30, 2025 and 2024, respectively. We deduct this cost from insurance policy income. Reinsurance recoveries netted against insurance policy benefits totaled $98.8 million and $98.4 million for the three months ended September 30, 2025 and 2024, respectively, and $277.4 million and $294.0 million for the nine months ended September 30, 2025 and 2024, respectively. From time to time, we assume insurance from other companies. Any costs associated with the assumption of insurance are amortized consistent with the method used to amortize deferred acquisition costs. Reinsurance premiums assumed totaled $3.4 million and $3.8 million for the three months ended September 30, 2025 and 2024, respectively, and $10.7 million and $11.8 million for the nine months September 30, 2025 and 2024, respectively. Insurance policy benefits related to reinsurance assumed totaled $5.9 million and $8.5 million for the three months ended September 30, 2025 and 2024, respectively, and $17.2 million and $21.5 million for the nine months September 30, 2025 and 2024, respectively.

INCOME TAXES

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

The Company's interim tax expense is based upon the estimated annual effective tax rate for the respective period. Under authoritative guidance, certain items are required to be excluded from the estimated annual effective tax rate calculation. Such items include changes in judgment about the realizability of deferred tax assets resulting from changes in projections of income expected to be available in future years, and items deemed to be unusual, infrequent, or that cannot be reliably estimated. In these cases, the actual tax expense or benefit applicable to that item is treated discretely and is reported in the same period as the related item.

The components of income tax expense are as follows (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Current tax expense	$	16.0	$	11.6	$	19.5	$	38.2
Deferred tax expense	12.2		(9.9)		41.2		31.7

Total income tax expense calculated based on estimated annual effective tax rate	28.2		1.7		60.7		69.9
Income tax benefit on discrete item:
Goodwill and other asset impairment	(15.1)		—		(15.1)		—
Total income tax expense	$	13.1	$	1.7	$	45.6	$	69.9

A reconciliation of the U.S. statutory corporate tax rate to the estimated annual effective tax rate, reflected in the consolidated statement of operations is as follows:


	Nine months ended
	September 30,
	2025		2024
U.S. statutory corporate rate	21.0	%	21.0	%

Non-taxable income and nondeductible benefits, net	(1.0)		(0.5)

State taxes	2.1		2.2
Estimated annual effective tax rate calculated before discrete items	22.1		22.7
Impact on effective tax rate from discrete items:
Goodwill and other asset impairment	2.9		—
Effective tax rate	25.0	%	22.7	%

The components of the Company's income tax assets and liabilities are summarized below (dollars in millions):


	September 30, 2025		December 31, 2024
Deferred tax assets:
Net federal operating loss carryforwards	$	205.2	$	72.2
Net state operating loss carryforwards	41.1		4.4



Insurance liabilities	340.4		325.5
Indirect costs allocable to self-constructed real estate assets	1.5		205.1
Accumulated other comprehensive income (loss)	314.9		385.1
Other	41.9		19.4
Gross deferred tax assets	945.0		1,011.7
Deferred tax liabilities:
Investments	(48.6)		(40.8)
Present value of future profits and deferred acquisition costs	(205.8)		(184.3)

Gross deferred tax liabilities	(254.4)		(225.1)


Net deferred tax assets	690.6		786.6
Current income taxes prepaid (accrued)	17.5		27.5
Income tax assets, net	$	708.1	$	814.1

Effective January 1, 2024, the Company elected to change its tax method of accounting for indirect costs allocable to self-constructed real estate assets. The change in accounting method results in a tax deduction of certain indirect costs previously capitalized under the Company's prior method of accounting. In the second quarter of 2024, the Internal Revenue Service (the "IRS") revised the list of tax method accounting changes that require approval from the IRS to include tax method accounting changes related to indirect costs allocable to self-constructed real estate assets. Previously, only a taxpayer-initiated election was necessary and formal IRS approval was not required. The Company requested approval for its tax method change in June 2024. At December 31, 2024, the Company had not yet received approval from the IRS and was therefore required to account for the existing tax assets under the prior tax method of accounting. In March 2025, the Company executed a consent agreement with the IRS that provides formal approval for the tax method change. As a result, the Company recharacterized the remaining $797.6 million of capitalized indirect costs under the prior accounting method to a net operating loss carryforward ("NOL") with no expiration date.

Our income tax expense includes deferred income taxes arising from temporary differences between the financial reporting and tax bases of assets and liabilities and NOLs. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which temporary differences are expected to be recovered or paid. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period when the changes are enacted.

A reduction of the net carrying amount of deferred tax assets by establishing a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. In assessing the need for a valuation allowance, all available evidence, both positive and negative, are considered to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, our experience with operating loss and tax credit carryforwards expiring unused, and tax planning strategies.

We evaluate the need to establish a valuation allowance for our deferred income tax assets on an ongoing basis using a deferred tax valuation model. Our model is adjusted to reflect changes in our projections of future taxable income. Our estimates of future taxable income are based on evidence we consider to be objectively verifiable. Such estimates are subject to numerous risks and uncertainties and the extent to which actual impacts differ from the assumptions used in our deferred tax valuation model. Based on our assessment, we have concluded that it is more likely than not that all our net deferred tax assets of $690.6 million will be realized through future taxable earnings.

Recovery of our deferred tax asset is dependent on achieving the level of future taxable income projected in our deferred tax valuation model and failure to do so could result in the recognition of a valuation allowance in a future period. The recognition of a valuation allowance would increase income tax expense and reduce shareholders' equity.

Section 382 of the Internal Revenue Code (the "Code") imposes limitations on a corporation's ability to use its NOLs when the company undergoes a 50 percent ownership change over a three-year period. Future transactions and the timing of such transactions could cause an ownership change for Section 382 income tax purposes. Such transactions may include, but are not limited to, additional repurchases under our securities repurchase program, issuances of common stock and acquisitions or sales of shares of CNO stock by certain holders of our shares, including persons who have held, currently hold or may accumulate in the future five percent or more of our outstanding common stock for their own account. Many of these transactions are beyond our control. If an ownership change were to occur for purposes of Section 382, we would be required to calculate an annual restriction on the use of our NOLs to offset future taxable income. The annual restriction would be calculated based upon the value of CNO's equity at the time of such ownership change, multiplied by a federal long-term tax exempt rate (3.71 percent at September 30, 2025), and the annual restriction could limit our ability to use a substantial portion of our NOLs to offset future taxable income or may defer the utilization of such NOLs. We regularly monitor ownership change (as calculated for purposes of Section 382) and, as of September 30, 2025, we were below the 50 percent ownership change level that could limit our ability to utilize our NOLs.

We have $977.3 million of federal non-life NOLs as of September 30, 2025, as summarized below (dollars in millions):


Year of expiration	Total


NOLs expiring in 2029 through 2035	$	150.4
NOLs with no expiration date	826.9
Total	$	977.3

Our non-life NOLs with expiration dates can be used to offset 35 percent of life insurance company taxable income and 100 percent of non-life company taxable income until all non-life NOLs are utilized or expire. Our non-life NOLs with no expiration date can be used to offset 35 percent of life insurance company taxable income and 80 percent of non-life company taxable income.

We also had deferred tax assets related to NOLs for state income taxes of $41.1 million and $4.4 million at September 30, 2025 and December 31, 2024, respectively, primarily resulting from the tax method change discussed previously. The related state NOLs are available to offset future state taxable income in certain states and are expected to be fully utilized prior to expiration.

The Company had a capital loss carryforward of $30.9 million and $5.6 million at September 30, 2025 and December 31, 2024, respectively. Capital loss carryforwards can be carried forward for up to five years to offset future capital gains. We expect this carryforward to be fully utilized prior to the expiration date in 2030.

The IRS is conducting an examination of our 2016 through 2018 tax returns. The federal statute of limitations remains open with respect to tax years 2016 through 2024. The Company's various state income tax returns are generally open for tax years based on individual state statutes of limitation. Generally, for tax years which generate NOLs, capital losses or tax credit carryforwards, the statute remains open until the expiration of the statute of limitations for the tax year in which such carryforwards are utilized. The outcome of tax audits cannot be predicted with certainty. If the Company's tax audits are not resolved in a manner consistent with management’s expectations, the Company may be required to adjust its provision for income taxes.

On July 4, 2025, the One Big Beautiful Bill Act of 2025 was enacted in the United States, which among other things, provides permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. These changes will primarily impact the timing of our tax deductions; however, we do not expect these provisions to have a material impact on our financial position or results of operations.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 5: http://www.xbrl.org/2003/role/exampleRef
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-Section 55
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)
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-Topic 740
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+ Details

NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS

9 Months Ended

Sep. 30, 2025

Debt Disclosure [Abstract]

NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS

The following notes payable were direct corporate obligations of the Company as of September 30, 2025 and December 31, 2024 (dollars in millions):


	September 30, 2025		December 31, 2024
6.450% Senior Notes due June 2034	$	700.0	$	700.0
5.125% Subordinated Debentures due 2060	150.0		150.0
5.250% Senior Notes due May 2029	500.0		500.0
5.250% Senior Notes due May 2025	—		500.0
Unamortized discount on 6.450% Senior Notes due June 2034	(2.1)		(2.2)
Unamortized debt issue costs	(12.7)		(14.3)
Direct corporate obligations	$	1,335.2	$	1,833.5

Senior Notes due May 2025

During May 2025, the Company used a portion of the net proceeds from the issuance of the Senior Notes due June 2034 to repay our Senior Notes due May 2025.

Credit Agreement

On May 8, 2025, the Company entered into a sixth amendment and restatement agreement (the "Credit Agreement") with respect to its existing credit agreement. The $250.0 million Credit Agreement, among other things, (i) requires the Company to maintain (each as calculated in accordance with the Revolving Credit Agreement): (i) a debt to total capitalization ratio (excluding hybrid securities, except to the extent that the aggregate amount outstanding of all such hybrid securities exceeds an amount equal to 15.0 percent of total capitalization) of not more than 35.0 percent (such ratio was 24.0 percent at September 30, 2025); and (ii) a minimum consolidated net worth of not less than the sum of (x) $2,674.0 million plus (y) 25.0 percent of the net equity proceeds received by the Company from the issuance and sale of equity interests in the Company, including the conversion of debt securities of the Company into Equity interests (the Company's consolidated net worth was $3,729.9 million at September 30, 2025 compared to the minimum requirement of $2,674.3 million). The maturity date of the Credit Agreement is May 8, 2030. The Credit Agreement contains certain other restrictive covenants with which the Company must comply. The interest rate applicable to loans under the Credit Agreement is calculated as the Secured Overnight Financing Rate ("SOFR") or the base rate (as defined in the Credit Agreement), at the Company's option, plus a margin based on the Company's unsecured debt rating. The applicable margins under the Credit Agreement range from 1.125 percent to 1.750 percent, in the case of loans at the SOFR, and 0.125 percent to 0.750 percent, in the case of loans at the base rate. The commitment fee under the Credit Agreement is based on the Company's unsecured debt rating. The Credit Agreement also provides that the Company may incur up to $200 million of incremental loans (which may include new term loans), subject to conditions that are set forth therein. There are no term loans outstanding under the Credit Agreement as of September 30, 2025. There were no amounts outstanding under the Credit Agreement during the nine months ended September 30, 2025.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INVESTMENT BORROWINGS

9 Months Ended

Sep. 30, 2025

Investment Borrowings [Abstract]

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 on a collateralized basis from the FHLB. 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 September 30, 2025, the carrying value of the FHLB common stock was $109.3 million. As of September 30, 2025, collateralized borrowings from the FHLB totaled $2.4 billion and the proceeds were used to purchase matched variable rate fixed maturity securities with similar durations. The borrowings are classified as investment borrowings in the accompanying consolidated balance sheet. The borrowings are collateralized by investments with an estimated fair value of $3.4 billion at September 30, 2025, 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 following summarizes the terms of the borrowings from the FHLB by our insurance subsidiaries (dollars in millions):

Amount

Maturity

Interest rate at

borrowed

date

September 30, 2025

$

50.0

January 2026

Variable rate - 4.801%

50.0

January 2026

Variable rate - 4.788%

100.0

January 2026

Variable rate - 4.705%

5.0

May 2026

Variable rate - 4.556%

21.8

May 2026

Variable rate - 4.595%

50.0

May 2026

Variable rate - 4.400%

10.0

November 2026

Variable rate - 4.604%

75.0

December 2026

Variable rate - 4.505%

75.0

January 2027

Variable rate - 4.644%

50.0

January 2027

Variable rate - 4.761%

50.0

January 2027

Variable rate - 4.548%

100.0

February 2027

Variable rate - 4.595%

50.0

April 2027

Variable rate - 4.395%

50.0

May 2027

Variable rate - 4.405%

100.0

June 2027

Variable rate - 4.500%

10.0

June 2027

Variable rate - 4.723%

15.5

July 2027

Variable rate - 4.570%

50.0

July 2027

Variable rate - 4.765%

12.5

September 2027

Variable rate - 4.656%

57.7

November 2027

Variable rate - 4.801%

100.0

December 2027

Variable rate - 4.665%

100.0

December 2027

Variable rate - 4.635%

50.0

December 2027

Variable rate - 4.580%

75.0

January 2028

Variable rate - 4.573%

134.5

January 2028

Variable rate - 4.563%

50.0

January 2028

Variable rate - 4.801%

50.0

January 2028

Variable rate - 4.705%

100.0

January 2028

Variable rate - 4.753%

100.0

February 2028

Variable rate - 4.702%

21.0

February 2028

Variable rate - 4.625%

22.0

February 2028

Variable rate - 4.651%

100.0

February 2028

Variable rate - 4.615%

27.0

July 2028

Variable rate - 4.600%

15.0

July 2028

Variable rate - 4.510%

35.0

August 2028

Variable rate - 4.520%

12.5

September 2028

Variable rate - 4.752%

42.2

May 2029

Variable rate - 4.733%

50.0

August 2029

Variable rate- 4.690%

50.0

April 2030

Variable rate - 4.963%

50.0

May 2030

Variable rate - 4.715%

50.0

May 2030

Variable rate - 4.822%

100.0

May 2030

Variable rate - 4.791%

125.0

September 2030

Variable rate - 4.630%

$

2,441.7

Generally, the variable and fixed rate borrowings are pre-payable. At September 30, 2025, the aggregate prepayment penalty on such outstanding borrowings was not material.

Interest expense of $83.4 million and $94.6 million during the nine months ended September 30, 2025 and 2024, respectively, was recognized related to total borrowings from the FHLB, reflecting lower interest rates on the variable rate investment borrowings partially offset by higher average investment borrowings during the nine months ended September 30, 2025.

SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2025

Equity [Abstract]

SHAREHOLDERS' EQUITY

During the nine months ended September 30, 2025, we repurchased 6.7 million shares of common stock for $259.9 million under our securities repurchase program (including $1.0 million of repurchases settled in the fourth quarter of 2025). The Company had remaining repurchase authority of $480.4 million as of September 30, 2025.

During the nine months ended September 30, 2025, we issued 0.9 million shares of common stock, net of shares withheld to pay tax withholdings, pursuant to employee benefit plans.

During the nine months ended September 30, 2025, dividends declared on common stock totaled $50.0 million ($0.50 per common share). In May 2025, the Company increased its quarterly common stock dividend to $0.17 per share from $0.16 per share.

Accumulated other comprehensive loss, included in shareholders' equity as of September 30, 2025 and December 31, 2024, is comprised of the following (dollars in millions):


	September 30, 2025		December 31, 2024
Net unrealized losses on investments having no allowance for credit losses (a)	$	(628.1)	$	(1,281.6)
Unrealized losses on investments with an allowance for credit losses	(1,155.5)		(1,108.7)
Change in discount rates for liability for future policy benefits	340.7		624.5
Change in instrument-specific credit risk for market risk benefits	0.8		1.4
Deferred income tax assets	323.2		393.0
Accumulated other comprehensive loss	$	(1,118.9)	$	(1,371.4)

___________

(a) The amortized cost and fair value of fixed maturity securities, available for sale, for which we have elected the fair value option were $39.9 million and $41.1 million, respectively, as of September 30, 2025. Accordingly, the net unrealized losses associated with these investments are excluded from accumulated other comprehensive loss. There were no fixed maturity securities, available for sale, for which we have elected the fair value option as of December 31, 2024.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

LITIGATION AND OTHER LEGAL PROCEEDINGS	9 Months Ended
LITIGATION AND OTHER LEGAL PROCEEDINGS	Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract]
LITIGATION AND OTHER LEGAL PROCEEDINGS	LITIGATION AND OTHER LEGAL PROCEEDINGS Legal Proceedings The Company and its subsidiaries are involved in various legal actions in the normal course of business, in which claims for compensatory and punitive damages are asserted, some for substantial amounts. We recognize an estimated loss from these loss contingencies when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Some of the pending matters have been filed as purported class actions and some actions have been filed in certain jurisdictions that permit punitive damage awards that are disproportionate to the actual damages incurred. The amounts sought in certain of these actions are often large or indeterminate and the ultimate outcome of certain actions is difficult to predict. In the event of an adverse outcome in one or more of these matters, there is a possibility that the ultimate liability may be in excess of the liabilities we have established and could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, the resolution of pending or future litigation may involve modifications to the terms of outstanding insurance policies or could impact the timing and amount of rate increases, which could adversely affect the future profitability of the related insurance policies. Based upon information presently available, and in light of legal, factual and other defenses available to the Company and its subsidiaries, the Company does not believe that it is probable that the ultimate liability from either pending or threatened legal actions, after consideration of existing loss provisions, will have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. However, given the inherent difficulty in predicting the outcome of legal proceedings, there exists the possibility that such legal actions could have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. In addition to the inherent difficulty of predicting litigation outcomes, particularly those that will be decided by a jury, some matters purport to seek substantial or an unspecified amount of damages for unsubstantiated conduct spanning several years based on complex legal theories and damages models. The alleged damages typically are indeterminate or not factually supported in the complaint, and, in any event, the Company's experience indicates that monetary demands for damages often bear little relation to the ultimate loss. In some cases, plaintiffs are seeking to certify classes in the litigation and class certification either has been denied or is pending and we have filed oppositions to class certification or sought to decertify a prior class certification. In addition, for many of these cases: (i) there is uncertainty as to the outcome of pending appeals or motions; (ii) there are significant factual issues to be resolved; and/or (iii) there are novel legal issues presented. Accordingly, the Company cannot reasonably estimate the possible loss or range of loss in excess of amounts accrued, if any, or predict the timing of the eventual resolution of these matters. The Company reviews these matters on an ongoing basis. When assessing reasonably possible and probable outcomes, the Company bases its assessment on the expected ultimate outcome following all appeals. On June 7, 2019, Platinum Partners Value Arbitrage Fund L.P. (in Official Liquidation) ("PPVA"), the Joint Official Liquidators of PPVA (the "JOLs") and Principal Growth Strategies, LLC ("PGS") commenced suit against, among others, CNO Financial Group, Inc., Bankers Conseco Life Insurance Company ("BCLIC"), Washington National and 40\|86 Advisors, Inc. (collectively, the "CNO Parties") in Delaware Chancery Court. Plaintiffs seek an unspecified amount of damages, costs, attorney's fees, and other relief as the court deems appropriate. Plaintiffs allege that the CNO Parties were unjustly enriched when they terminated BCLIC and Washington National's reinsurance agreements with Beechwood Re Ltd. ("BRe") and recaptured assets from reinsurance trusts, in particular, Agera securities. Plaintiffs contend that the Agera securities were fraudulently transferred to the reinsurance trusts by other Platinum-related entities and they are seeking to claw back those Agera securities, or the value of those assets, from the CNO Parties. The CNO Parties had removed the case to the United States District Court for the District of Delaware but on April 6, 2020, the District Court granted Plaintiffs' motion to remand the case back to the Delaware Chancery Court. On July 10, 2020, Plaintiffs filed an Amended Complaint and the CNO Parties moved to dismiss the Amended Complaint. The Delaware Chancery Court denied the CNO Parties’ motions to dismiss the Amended Complaint on the basis of forum non conveniens, but granted the CNO Parties’ motion to stay the case pending the conclusion of a related matter. On December 1, 2023, the Delaware Chancery Court lifted the stay as of November 30, 2023. On January 25, 2024, the Delaware Chancery Court granted in part and denied in part the CNO Parties’ motion to dismiss the Amended Complaint. Based on the Court’s ruling, PPVA and the JOLs’ claims against the CNO Parties were dismissed. On April 9, 2024, PGS filed a second amended complaint, which contains the same claims against the CNO Parties that PGS had previously asserted. The CNO Parties are vigorously contesting PGS's claims. Under the existing Case Schedule, trial is scheduled to commence in April 2026. On October 5, 2012, plaintiffs William Jeffrey Burnett and Joe H. Camp commenced an action entitled Burnett v. Conseco Life Ins. Co. against, among others, CNO Financial Group, Inc. and CNO Services, LLC (collectively, the "CNO Entities") in the United States District Court for the Central District of California on behalf of a putative class of former interest-sensitive whole life insurance policyholders who surrendered their policies or let them lapse. Plaintiffs' first amended complaint alleges that the CNO Entities are liable under an alter ego theory for Conseco Life Insurance Company's purported breach of the optional premium payment provision (the "Optional Premium Payment") and other provisions of plaintiffs' insurance policies. In January 2018, the case was transferred to the United States District Court for the Southern District of Indiana. On August 17, 2020, the Court denied the CNO Entities' motions to dismiss. On January 13, 2021, the Court granted final approval of a class action settlement between plaintiffs and co-defendant Conseco Life Insurance Company (n/k/a Wilco Life Insurance Company). The case remains pending against the CNO Entities. On March 25, 2022, the Court certified a Rule 23(b)(3) class of under 2,000 policyholders who invoked the policy's Optional Premium Payment prior to October 2008 and who surrendered their policies between October 7, 2008 and September 1, 2011. The Court's certification order acknowledged the existence of individualized issues of causation and damages, which the Court stated could be addressed in individualized proceedings following a class trial on the alter ego allegations and the meaning of the subject insurance policy language. On September 25, 2024, the Court granted in part and denied in part the CNO Entities' Motion for Summary Judgment on the breach of contract claim. On November 12, 2024, the Court granted CNO Entities' Motion to Bifurcate the trials of the breach of contract and alter ego claims. On May 7, 2025, the CNO Entities conceded that certain actions by Conseco Life Insurance Company breached the policies’ terms; the CNO Entities maintain that such breaches did not cause any damages to Plaintiffs. A three-day jury trial on causation and damages as to the two class representatives commenced on June 16, 2025, and the jury returned a verdict in favor of the class representatives on June 18, 2025 for approximately $0.2 million collectively. This verdict is notional and contingent and has no preclusive effect on any follow on trials by absent class members in terms of causation and damages. The class representatives' ability to collect any damages from the CNO Entities will depend on the outcome of the bench trial on alter ego liability. The bench trial on alter ego liability was held between August 26 to September 2, 2025, but no ruling has been made yet. The parties are currently preparing post-trial briefing, which is anticipated to be concluded by mid-November. Any liability of any kind will depend on the outcome of the alter ego trial, and in the event the court rules in favor of Plaintiffs on that issue, whether absent class members will participate in follow on trials to determine whether they are entitled to damages, and the outcome of those trials. The outcome of all trials will be subject to appeal. Because there is no final judgment in the case resulting from the jury trial, the CNO Entities cannot yet appeal the jury verdict, and all rights to appeal with respect to all issues have otherwise been preserved. Any follow on trials and appeals with respect to absent class members may take years to resolve. The CNO Entities continue to vigorously defend the case. Regulatory Examinations and Fines Insurance companies face significant risks related to regulatory investigations and actions. Regulatory investigations generally result from matters related to sales or underwriting practices, payment of contingent or other sales commissions, claim payments and procedures, product design, product disclosure, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, procedures related to canceling policies, changing the way cost of insurance charges are calculated for certain life insurance products or recommending unsuitable products to customers. We are, in the ordinary course of our business, subject to various examinations, inquiries and information requests from state, federal and other authorities. The ultimate outcome of these regulatory actions, including the costs of complying with information requests and policy reviews, cannot be predicted with certainty. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of liabilities we have established and we could suffer significant reputational harm as a result of these matters, which could also have a material adverse effect on our business, financial condition, results of operations or cash flows.

- Definition

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-4

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482804/825-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 720
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483359/720-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 5.Y.Q4)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480102/450-20-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 5.Y.Q2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480102/450-20-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/450-20/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-4

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-9

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 30
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/450-30/tableOfContent

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483049/450-30-50-1

+ Details

CONSOLIDATED STATEMENT OF CASH FLOWS

9 Months Ended

Sep. 30, 2025

Supplemental Cash Flow Elements [Abstract]

CONSOLIDATED STATEMENT OF CASH FLOWS

The following reconciles net income to net cash from operating activities (dollars in millions):


	Nine months ended
	September 30,
	2025		2024
Cash flows from operating activities:
Net income	$	136.4	$	237.9
Adjustments to reconcile net income to net cash from operating activities:
Amortization and depreciation	236.7		216.3
Income taxes	36.1		17.6
Insurance liabilities	461.4		486.1
Accrual, amortization and fair value changes included in investment income	(174.5)		(299.6)
Deferral of policy acquisition costs	(377.8)		(327.4)
Net investment losses	28.2		8.2

Gain on extinguishment of borrowings related to VIEs	(1.5)		—
Goodwill and other asset impairment	96.7		—
Other (a)	38.3		97.6
Net cash from operating activities	$	480.0	$	436.7

_____________

(a) Primarily relates to changes in other assets and liabilities related to the timing of payments and receipts.

Other non-cash items not reflected in the investing and financing activities sections of the consolidated statement of cash flows (dollars in millions):


	Nine months ended
	September 30,
	2025		2024
Amounts related to employee benefit plans	$	20.4	$	17.1

INVESTMENTS IN VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

INVESTMENTS IN VARIABLE INTEREST ENTITIES

We have concluded that we are the primary beneficiary with respect to certain VIEs, which are consolidated in our financial statements. In consolidating the VIEs, we consistently use the financial information most recently distributed to investors in the VIE.

All of the VIEs are collateralized loan trusts that were established to issue securities to finance the purchase of commercial bank loans and other permitted investments. The assets held by the trusts are legally isolated and not available to the Company. The liabilities of the VIEs are expected to be satisfied from the cash flows generated by the underlying loans held by the trusts, not from the assets of the Company. The Company has no financial obligation to the VIEs beyond its investment in each VIE.

Certain of our subsidiaries are noteholders of the VIEs. Another subsidiary of the Company is the investment manager for the VIEs. As such, it has the power to direct the most significant activities of the VIEs which materially impacts the economic performance of the VIEs.

The following tables provide supplemental information about the assets and liabilities of the VIEs which have been consolidated in accordance with authoritative guidance (dollars in millions):


	September 30, 2025
	VIEs		Eliminations		Net effect on consolidated balance sheet
Assets:
Investments held by variable interest entities	$	296.8	$	—	$	296.8
Notes receivable of VIEs held by subsidiaries	—		(114.8)		(114.8)
Cash and cash equivalents held by variable interest entities	23.3		—		23.3
Accrued investment income	1.0		—		1.0
Income tax assets, net	16.1		—		16.1
Other assets	5.5		(0.3)		5.2
Total assets	$	342.7	$	(115.1)	$	227.6
Liabilities:
Other liabilities	$	14.8	$	(0.9)	$	13.9
Borrowings related to variable interest entities	274.3		—		274.3
Notes payable of VIEs held by subsidiaries	114.8		(114.8)		—
Total liabilities	$	403.9	$	(115.7)	$	288.2


	December 31, 2024
	VIEs		Eliminations		Net effect on consolidated balance sheet
Assets:
Investments held by variable interest entities	$	433.8	$	—	$	433.8
Notes receivable of VIEs held by subsidiaries	—		(130.0)		(130.0)
Cash and cash equivalents held by variable interest entities	341.0		—		341.0
Accrued investment income	0.9		—		0.9
Income tax assets, net	15.0		—		15.0
Other assets	5.5		(0.2)		5.3
Total assets	$	796.2	$	(130.2)	$	666.0
Liabilities:
Other liabilities	$	225.5	$	(0.6)	$	224.9
Borrowings related to variable interest entities	497.6		—		497.6
Notes payable of VIEs held by subsidiaries	131.2		(131.2)		—
Total liabilities	$	854.3	$	(131.8)	$	722.5

The investment portfolios held by the VIEs are primarily comprised of commercial bank loans to corporate obligors which are almost entirely rated below-investment grade. At September 30, 2025, such loans had an amortized cost of $298.6 million; gross unrealized gains of $0.5 million; gross unrealized losses of $1.8 million; allowance for credit losses of $0.5 million; and an estimated fair value of $296.8 million.

The following table summarizes changes in the allowance for credit losses related to corporate securities held by VIEs (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Allowance at the beginning of the period	$	2.3	$	2.8	$	1.3	$	3.1
Additions for securities for which credit losses were not previously recorded	0.2		0.2		1.3		0.6
Additions (reductions) for securities where an allowance was previously recorded	—		0.2		1.4		2.1
Reduction for securities disposed during the period	(2.0)		(1.4)		(3.5)		(4.0)
Allowance at the end of the period	$	0.5	$	1.8	$	0.5	$	1.8

The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at September 30, 2025, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.


	Amortized cost		Estimated fair value
	(Dollars in millions)

Due after one year through five years	$	135.2	$	133.8
Due after five years through ten years	163.4		163.0

Total	$	298.6	$	296.8

During the nine months ended September 30, 2025, the VIEs recognized net investment losses of $6.1 million which were comprised of: (i) $6.9 million of net losses from the sales of fixed maturities and (ii) a decrease in the allowance for credit losses of $0.8 million. Such net realized losses included gross realized losses of $7.3 million from the sale of $88.2 million of investments.

During the nine months ended September 30, 2024, the VIEs recognized net investment losses of $12.5 million which were comprised of: (i) $17.7 million of net losses from the sales of fixed maturities; (ii) $3.9 million of gains related to the liquidation of a VIE; and (iii) an decrease in the allowance for credit losses of $1.3 million. Such net realized losses included gross realized losses of $18.9 million from the sale of $176.9 million of investments.

At September 30, 2025, there were no fixed maturity investments held by the VIEs in default.

At September 30, 2025, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $169.5 million and gross unrealized losses not deemed to have credit losses of $1.4 million that had been in an unrealized loss position for less than twelve months.

At December 31, 2024, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $183.2 million and gross unrealized losses of $0.9 million that had been in an unrealized loss position for less than twelve months; and (ii) investments (for which an allowance for credit losses has not been recorded) with a fair value of $25.6 million and gross unrealized losses of $0.3 million that had been in an unrealized loss position for greater than twelve months.

The investments held by the VIEs are evaluated for impairment in a manner that is consistent with the Company's fixed maturities, available for sale.

In addition, the Company, in the normal course of business, makes passive investments in structured securities issued by VIEs for which the Company is not the investment manager. These structured securities include asset-backed securities, collateralized loan obligations, commercial mortgage-backed securities, agency residential mortgage-backed securities and

non-agency residential mortgage-backed securities. Our maximum exposure to loss on these securities is limited to our cost basis in the investment. We have determined that we are not the primary beneficiary of these structured securities due to the relative size of our investment in comparison to the total principal amount of the individual structured securities and the level of credit subordination which reduces our obligation to absorb gains or losses.

At September 30, 2025, we held investments of $598.3 million in various limited partnerships, in which we are not the primary beneficiary. These investments are included within other invested assets on the consolidated balance sheet and typically reported to us one quarter in arrears. At September 30, 2025, we had unfunded commitments to these partnerships totaling $639.4 million. Our maximum exposure to loss on these investments is limited to the amount of our investment and any unfunded commitments.

SUBSEQUENT EVENT	9 Months Ended
SUBSEQUENT EVENT	Sep. 30, 2025
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT In November 2025, the Company announced its intention to exit the fee services business within its Worksite Division to sharpen its focus on the core insurance business. The fee services business includes benefits administration technology, education, and advocacy, and communications services. This business generated pre-tax losses of $18.3 million and $13.4 million for the nine months ended September 30, 2025 and 2024, respectively. The Company expects to incur between $15 million and $20 million of additional pre-tax charges in the fourth quarter related to exit and disposal costs. The exit is expected to be substantially complete in the first half of 2026.

Insider Trading Arrangements

3 Months Ended

Sep. 30, 2025

shares

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

During the three months ended September 30, 2025, certain officers (as defined in Rule 16a-1(f) of the Exchange Act) (the "Section 16 officers") of the Company adopted separate Rule 10b5-1 trading arrangements (as defined in Item 408(a) of Regulation S-K) for the sale of the Company’s common stock. The following summarizes the material terms of such Rule 10b5-1 trading arrangements, which are intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act and the Company’s policies regarding transactions in Company securities:

Name and title of officer

Date of trading arrangement

Duration of trading arrangement (a)

Aggregate shares of common stock to be sold pursuant to the trading arrangement (b)

Gary C. Bhojwani

August 21, 2025

May 19, 2026

196,260 (c)

Chief Executive Officer

Yvonne K. Franzese

August 20, 2025

May 19, 2026

12,000 (d)

Chief Human Resources Officer

_________

(a) Trading arrangement will terminate on the earlier of the date (i) stated in this column, (ii) on which the aggregate

number of shares has been sold, or (iii) on which the individual gives the designated agent notice to terminate.

(b) Aggregate shares to be sold will be subject to reduction of certain shares surrendered to satisfy required tax

withholding obligations upon future vesting events.

(c) Of these shares, 133,400 are performance share grants of which the number of underlying shares to vest will depend upon achievement of certain financial metrics for the Company's 2023-2025 performance period.

(d) Of these shares, 9,000 are performance share grants of which the number of underlying shares to vest will depend upon achievement of certain financial metrics for the Company's 2023-2025 performance period.

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Gary C. Bhojwani [Member]

Trading Arrangements, by Individual

Name

Gary C. Bhojwani

Title

Chief Executive Officer

Rule 10b5-1 Arrangement Adopted

true

August 21, 2025

May 19, 2026

271 days

196,260

Yvonne K. Franzese [Member]

Trading Arrangements, by Individual

Title

Chief Human Resources Officer

Rule 10b5-1 Arrangement Adopted

true

August 20, 2025

May 19, 2026

272 days

12,000

Gary C. Bhojwani, Performance Share Grant [Member] | Gary C. Bhojwani [Member]

Trading Arrangements, by Individual

Aggregate Available

133,400

Yvonne K. Franzese, Performance Share Grant [Member] | Yvonne K. Franzese [Member]

Trading Arrangements, by Individual

Aggregate Available

9,000

BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	When we prepare financial statements in conformity with GAAP, we are required to make estimates and assumptions that significantly affect reported amounts of various assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting periods. For example, we use significant estimates and assumptions to calculate values for deferred acquisition costs, the present value of future profits, fair value measurements of certain investments (including derivatives), allowance for credit losses and other-than-temporary impairments of investments, assets and liabilities related to income taxes, liabilities for insurance products, liabilities related to litigation, guaranty fund assessment accruals, goodwill and intangible assets, and fee revenue. If our future experience differs from these estimates and assumptions, our financial statements could be materially affected.
Consolidation	The accompanying financial statements are unaudited and include the accounts of the Company and its subsidiaries. Our consolidated financial statements exclude transactions between us and our consolidated affiliates, or among our consolidated affiliates.
Goodwill and Intangible Assets	Goodwill and Intangible Assets In February 2021, we acquired DirectPath, LLC ("DirectPath", now known as Optavise, LLC ("Optavise") subsequent to its name change in April 2022). In April 2019, we acquired Web Benefits Design Corporation ("WBD"), which was subsequently merged into Optavise during 2023. Optavise provides personalized benefits education, advocacy and transparency, and communications services that help employers reduce healthcare costs and assist employees with making informed benefits decisions. Optavise goodwill and other intangible assets arising from the acquisitions are reflected in our Fee income segment. Intangible assets with definite lives are amortized over their estimated useful lives and are reviewed for impairment if indicators of impairment arise. When such indicators are present, intangible assets are first tested for recoverability in accordance with Accounting Standards Codification (ASC) 360, Property, Plant, and Equipment. If the assets are not recoverable, an impairment loss is recorded, measured as the difference between the assets' fair value and their carrying value. Goodwill is tested annually for impairment and whenever indicators of impairment arise in accordance with ASC 350, Intangibles - Goodwill and Other. The Company first performs a qualitative assessment to determine whether it is more likely than not a goodwill impairment exists, and if an indication of potential impairment results from the qualitative assessment, a quantitative assessment is performed. The Company prepares a quantitative assessment to determine the fair value of the reporting unit by using a combination of the present value of expected future cash flows and a market approach based on revenue-multiple data from peer companies and relevant observable market transactions, if available. If an impairment is identified, a write-off is recorded by the amount that the carrying value exceeds the fair value of the reporting unit up to the carrying amount of goodwill and intangible assets. Macroeconomic, industry and market conditions, both current and future expected financial performance, and relevant entity-specific events in the three months ended September 30, 2025 caused us to consider whether there were any interim indicators of impairment. As a result of this evaluation, we identified that the valuation of Optavise would more likely than not be impacted by the recent decline in value of comparable publicly traded companies. This, combined with lower than anticipated revenue in the quarter and trends for future periods led us to conclude that there were indicators of impairment and we accordingly prepared a quantitative assessment. The Company determined the fair value of the reporting unit by using a combination of the present value of expected future cash flows and a market approach based on earnings multiple data from peer companies, using unobservable level 3 inputs.
Recently Adopted/Issued Accounting Standards	Recently Adopted Accounting Standards We adopted Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07") effective January 1, 2024. ASU 2023-07 is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. Such requirements include: (i) disclosures on significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss on an annual and interim basis; (ii) disclosures of an amount for other segment items by reportable segment and a description of its composition on an annual and interim basis (the other segment items category is the difference between segment revenues less the segment expenses disclosed pursuant to the new guidance); (iii) providing all annual disclosures on a reportable segment’s profit or loss and assets currently required by Financial Accounting Standards Board ("FASB") ASC Topic 280, Segment Reporting, in interim periods; and (iv) specifying the title and position of the CODM and an explanation of how the CODM uses the reported measures to assess segment performance and make decisions about allocating resources. The adoption of ASU 2023-07 did not have an impact on our financial position or results of operations, and did not have a material impact on our disclosures. The adoption was made retrospectively. Recently Issued Accounting Standards In September 2025, the FASB issued Accounting Standards Update 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). This update removes all references to prescriptive and sequential software development stages, and adds that entities are required to start capitalizing software costs when both of the following occur: 1) management has authorized and committed to funding the software project, and 2) it is probable that the project will be completed and the software will be used to perform the function intended. The update also removes Subtopic 350-50, Website Development Costs, and incorporates that guidance within Subtopic 350-40. ASU 2025-06 is effective for annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Early adoption is permitted. Entities will have the option to apply the updates prospectively, under a modified transition approach that is based on the status of the project and whether software costs were capitalized before the date of adoption, or retrospectively. We are currently evaluating the effect of ASU 2025-06 on our consolidated financial statements and related disclosures. In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update provides a practical expedient for entities when estimating expected credit losses to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods. Early adoption is permitted. ASU 2025-05 should be applied prospectively. We are currently evaluating the effect of ASU 2025-05 on our consolidated financial statements and related disclosures. In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disclosure of additional information about specific expense categories in the notes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. ASU 2024-03 may be applied retrospectively or prospectively. The adoption of ASU 2024-03 will modify our disclosures but will not have an impact on our financial position or results of operations. We do not expect the impact to our disclosures to be material. In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 is intended to improve the effectiveness of income tax disclosures by requiring, among other things, the disclosure on an annual basis of: (i) specific categories in the rate reconciliation; and (ii) additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires disclosure (on an annual basis) of the following information about income taxes paid: (i) the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes; and (ii) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). ASU 2023-09 is effective for annual periods beginning after December 15, 2024, to be applied prospectively with an option for retrospective application (with early adoption permitted). The adoption of ASU 2023-09 will modify our disclosures but will not have an impact on our financial position or results of operations.
Revision of Prior Period Amounts	Revision of Prior Period Amounts As previously disclosed, certain amounts presented in the prior years’ consolidated statement of operations for the three and nine months ended September 30, 2024, consolidated balance sheet as of December 31, 2024, consolidated statement of shareholders’ equity as of December 31, 2024 and related footnotes thereto have been corrected to conform with the current period presentation. During the fourth quarter of 2024, the Company corrected certain immaterial errors that resulted in misclassifications related to market risk benefits. Upon the adoption of Accounting Standards Update 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, the Company recorded the fair value of the market risk benefit ("MRB") in policyholder account balances, resulting in no initial MRB presented separately on the consolidated balance sheet. MRBs are required to be presented separately in the consolidated balance sheet. Subsequent to transaction inception, the resulting accumulated change in the fair value of the MRBs was recorded as market risk benefits within the consolidated balance sheet. Additionally, the transaction’s resulting policyholder account balance discount was accreted in change in fair value of MRBs. This accretion should have been recorded in insurance policy benefits within the consolidated statement of operations. To correct for the error, the Company increased insurance policy benefits and decreased change in value of market benefits by $4.8 million within the consolidated statement of operations for the three months ended September 30, 2024, and the Company increased insurance policy benefits and decreased change in fair value of market risk benefits by $15.6 million within the consolidated statement of operations for the nine months ended September 30, 2024. In addition, the Company identified an immaterial overstatement of its policy holder account balances and insurance policy benefits recorded for the year ended December 31, 2024 and the quarter ended March 31, 2025 related to the calculation of the embedded derivative for its flexible premium bonus indexed annuity product. This error caused the embedded derivative to be overstated as of these periods by $21.6 million and $31.7 million, respectively. The correction of these errors had no impact on our statement of cash flows or segment results for the periods reported. Finally, the consolidated balance sheet for the year ended December 31, 2024 has been revised to correct immaterial errors related to the classification of non-redeemable preferred stock and to reflect an unsettled investment trade by one of our variable interest entities ("VIEs"). To correct for these errors, fixed maturities, available for sale, at fair value was decreased by $110.4 million with a corresponding increase to equity securities at fair value, and investments held by variable interest entities increased $1.5 million with a corresponding increase to other liabilities.
Investments	We classify our fixed maturity securities into one of two categories: (i) "available for sale" (which we carry at estimated fair value with any unrealized gain or loss, net of any allowance for credit losses and income taxes, recorded as a component of shareholders' equity); or (ii) "trading", which we carry at estimated fair value with changes in such value recognized as either net investment income (classified as investment income from policyholder and other special-purpose portfolios) or investment gains (losses). Trading securities include: (i) investments purchased with the intent of selling in the near term to generate income; and (ii) certain fixed maturity securities containing embedded derivatives for which we have elected the fair value option. The change in fair value of the income generating investments is recognized in income from policyholder and other special-purpose portfolios in the consolidated statement of operations. The change in fair value of securities with embedded derivatives is recognized in other investment gains (losses) in the consolidated statement of operations. We review our available for sale fixed maturity securities with unrealized losses to determine whether such impairments are the result of credit losses. We analyze various factors to make such determinations including, but not limited to: (i) actions taken by rating agencies; (ii) default by the issuer; (iii) the significance of the decline; (iv) an assessment of our intent to sell the security before recovering the security's amortized cost; (v) an economic analysis of the issuer's industry; and (vi) the financial strength, liquidity, and recoverability of the issuer. We perform a security by security review each quarter to evaluate whether a credit loss has occurred. In determining the credit loss component, we discount the estimated cash flows on a security by security basis. We consider the impact of macroeconomic conditions on inputs used to measure the amount of credit loss. For most structured securities, cash flow estimates are based on bond-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayment speeds and structural support, including over- collateralization, excess spread, subordination and guarantees. For corporate bonds, cash flow estimates are derived by considering asset type, rating, time to maturity, and applying an expected loss rate. If a portion of the decline is due to credit-related factors, we separate the credit loss component of the impairment from the amount related to all other factors. The credit loss component is recorded as an allowance and reported in other investment gains (losses) (limited to the difference between estimated fair value and amortized cost). The impairment related to all other factors (non-credit factors) is reported in accumulated other comprehensive loss along with unrealized gains (losses) related to fixed maturity investments, available for sale, net of tax and related adjustments. The allowance is adjusted for any additional credit losses and subsequent recoveries. When recognizing an allowance associated with a credit loss, the cost basis is not adjusted. When we determine a security is uncollectible, the remaining amortized cost will be written off. If we intend to sell an impaired fixed maturity security, available for sale, or identify an impaired fixed maturity security, available for sale, for which it is more likely than not we will be required to sell before anticipated recovery, the difference between the fair value and the amortized cost is included in other investment gains (losses) and the fair value becomes the new amortized cost. The new cost basis is not adjusted for any subsequent recoveries in fair value. The Company reports accrued investment income separately from fixed maturities, available for sale, and has elected not to measure an allowance for credit losses for accrued investment income. Accrued investment income is written off through net investment income at the time the issuer of the bond defaults or is expected to default on payments. Future events may occur, or additional information may become available, which may necessitate future realized losses in our portfolio. Significant losses could have a material adverse effect on our consolidated financial statements in future periods.
Earnings Per Share	Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Restricted shares (including our performance units) are not included in basic earnings per share until vested. Diluted earnings per share reflect the potential dilution that could occur if outstanding stock options were exercised and restricted stock was vested. The dilution from options and restricted shares is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the average market price during the period, reducing the dilutive effect of the exercise of the options (or the vesting of the restricted stock and performance units).
Business Segments	We view our operations as three insurance product line segments (annuity, health and life) and the investment and fee income segments. Our segments are aligned based on their common characteristics, comparability of profit margins and the way the CODM makes operating decisions and assesses the performance of the business. Our CODM is the Chief Executive Officer. Our insurance product line segments (annuity, health and life) include marketing, underwriting and administration of the policies our insurance subsidiaries sell. The business written in each of the three product categories through all of our insurance subsidiaries is aggregated allowing management and investors to assess the performance of each product category. When analyzing profitability of these segments, we use insurance product margin as the measure of profitability, which is: (i) insurance policy income; and (ii) net investment income allocated to the insurance product lines; less (i) insurance policy benefits; (ii) interest credited to policyholders; (iii) amortization of deferred acquisition costs and present value of future profits, non-deferred commissions; and (iv) advertising expense. Net investment income is allocated to the product lines using the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period. Net insurance liabilities for the purpose of allocating investment income to product lines are equal to: (i) policyholder account values for interest sensitive products; (ii) total reserves before the fair value adjustments reflected in accumulated other comprehensive income (loss), if applicable, for all other products; less (iii) amounts related to reinsured business; (iv) deferred acquisition costs; (v) the present value of future profits; and (vi) the value of unexpired options credited to insurance liabilities. Income from insurance products is the sum of the insurance product margins of the annuity, health and life product lines, less expenses allocated to the insurance product lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes insurance product margin and income from insurance products help provide an additional understanding of the business and a more meaningful analysis of the results of our insurance product lines. We market our products through the Consumer and Worksite Divisions that reflect the customers served by the Company. The Consumer and Worksite Divisions are primarily focused on marketing insurance products, several types of which are sold in both divisions and underwritten in the same manner. The Consumer Division serves individual consumers, engaging with them on the phone, virtually, online, face-to-face with agents, or through a combination of sales channels. This structure unifies consumer capabilities into a single division and integrates the strength of our agent sales forces with one of the largest direct-to-consumer insurance businesses with proven experience in advertising, web/digital and call center support. The Worksite Division focuses on the sale of voluntary benefit life and health insurance products in the workplace for businesses, associations, and other membership groups, interacting with customers at their place of employment and virtually. The Worksite Division also offers employer benefits services that seek to increase benefits engagement and reduce costs for employers and their employees. These services include: benefit administration technology, year-round advocacy, enrollment, benefits compliance and communications services. The investment segment involves the management of our capital resources, including investments and the management of corporate debt and liquidity. Our measure of profitability of this segment is the total net investment income not allocated to the insurance products. Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable, investment borrowings and financing arrangements; (iv) expenses related to the Bankers Life and Casualty Company ("Bankers Life") funding agreement backed note ("FABN") program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our Federal Home Loan Bank ("FHLB") investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from COLI and alternative investment income not allocated to product lines), net of interest expense on corporate debt and financing arrangements. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the matched assets less: (i) interest on investment borrowings related to the FHLB investment borrowing program; (ii) interest credited on funding agreements; and (iii) amortization of deferred acquisition costs related to the FABN program. Our fee income segment includes the earnings generated from sales of third-party insurance products (primarily Medicare Advantage), services provided by Optavise, LLC ("Optavise") and the operations of our broker-dealer and registered investment advisor. The resulting fee income metric is the fee income segment's measure of profitability. Our CODM allocates resources and assesses the performance of each operating segment based on the respective product line insurance margin, investment income not allocated, and fee income metrics described above. Expenses not allocated to product lines include the expenses of our corporate operations, excluding interest expense on debt. We measure segment performance by excluding total investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan, income taxes, costs related to our three-year project to modernize certain elements of our technology ("TechMod"), goodwill and other asset impairment expenses and other non-operating items including earnings attributable to VIEs ("pre-tax operating earnings") because we believe that this performance measure is a better indicator of the ongoing business and trends in our business. Our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of investment gains (losses), and a long-term focus is necessary to maintain profitability over the life of the business. Investment gains (losses), changes in fair value of embedded derivative liabilities and MRBs, fair value changes related to the agent deferred compensation plan and other non-operating items consisting primarily of earnings attributable to VIEs depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments. Investment gains (losses) and changes in fair value of embedded derivative liabilities and MRBs may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business.
Fair Value Measurements	Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, therefore, represents an exit price, not an entry price. We carry certain assets and liabilities at fair value on a recurring basis, including fixed maturities, equity securities, trading securities, investments held by VIEs, derivatives, separate account assets and embedded derivatives. We carry our company-owned life insurance ("COLI"), which is invested in a series of mutual funds, at its cash surrender value which approximates fair value. In addition, we disclose fair value for certain financial instruments that are not carried at fair value, including mortgage loans, policy loans, cash and cash equivalents, insurance liabilities for interest-sensitive products and funding agreements, investment borrowings, notes payable and borrowings related to VIEs. The degree of judgment utilized in measuring the fair value of financial instruments is largely dependent on the level to which pricing is based on observable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. Financial instruments with readily available active quoted prices would be considered to have fair values based on the highest level of observable inputs, and little judgment would be utilized in measuring fair value. Financial instruments that rarely trade would often have fair value based on a lower level of observable inputs, and more judgment would be utilized in measuring fair value. Valuation Hierarchy There is a three-level hierarchy for valuing assets or liabilities at fair value based on whether inputs are observable or unobservable. •Level 1 – includes assets and liabilities valued using inputs that are unadjusted quoted prices in active markets for identical assets or liabilities. Our Level 1 assets primarily include cash and cash equivalents and exchange-traded securities. •Level 2 – includes assets and liabilities valued using inputs that are quoted prices for similar assets in an active market, quoted prices for identical or similar assets in a market that is not active, observable inputs, or observable inputs that can be corroborated by market data. Level 2 assets and liabilities include those financial instruments that are valued by independent pricing services using models or other valuation methodologies. These models consider various inputs such as credit rating, maturity, corporate credit spreads, reported trades and other inputs that are observable or derived from observable information in the marketplace or are supported by transactions executed in the marketplace. Financial assets in this category primarily include: certain publicly registered and privately placed corporate fixed maturity securities; certain government or agency securities; certain mortgage and asset-backed securities; certain equity securities; most investments held by our consolidated VIEs; and derivatives such as call options. Financial liabilities in this category include investment borrowings, notes payable and borrowings related to VIEs. •Level 3 – includes assets and liabilities valued using unobservable inputs that are used in model-based valuations that contain management assumptions. Level 3 assets and liabilities include those financial instruments whose fair value is estimated based on broker-dealer quotes, pricing services or internally developed models or methodologies utilizing significant inputs not based on, or corroborated by, readily available market information. Financial assets in this category include certain corporate securities, certain structured securities, mortgage loans, policy loans and other less liquid securities. Financial liabilities in this category include our insurance liabilities for interest-sensitive products, which includes embedded derivatives and MRB related to our fixed indexed annuity products, and and funding agreements since their values include significant unobservable inputs, including actuarial assumptions. At each reporting date, we classify assets and liabilities into the three input levels based on the lowest level of input that is significant to the measurement of fair value for each asset and liability reported at fair value. This classification is impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction and overall market conditions. Our assessment of the significance of a particular input to the fair value measurement and the ultimate classification of each asset and liability requires judgment and is subject to change from period to period based on the observability of the valuation inputs. The vast majority of our assets carried at fair value use Level 2 inputs for the determination of fair value. These fair values are obtained primarily from independent pricing services, which use Level 2 inputs for the determination of fair value. Our Level 2 assets are valued as follows: Fixed maturities available for sale, equity securities and trading securities Corporate securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads. U.S. Treasuries and obligations of U.S. Government corporations and agencies are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets and maturity. States and political subdivisions are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances and credit spreads. Foreign governments are generally priced using the market approach using independent pricing services. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, new issuances, benchmark yields, credit spreads and issuer rating. Asset-backed securities, agency and non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities are generally priced using market and income approaches using independent pricing services. Inputs generally consist of quoted prices in inactive markets, spreads on actively traded securities, expected prepayments, expected default rates, expected recovery rates and issue specific information including, but not limited to, collateral type, seniority and vintage. Equity securities are generally priced using the market approach. Inputs generally consist of trades of identical or similar securities, quoted prices in inactive markets, issuer rating, benchmark yields, maturity and credit spreads. Investments held by VIEs Corporate securities are generally priced using market and income approaches using independent pricing vendors. Inputs generally consist of issuer rating, benchmark yields, maturity, and credit spreads. Other invested assets - derivatives The fair value measurements for derivative instruments, including embedded derivatives requiring bifurcation, are determined based on the consideration of several inputs including closing exchange or over-the-counter market price quotes, time value and volatility factors underlying options, market interest rates and non-performance risk. Third-party pricing services normally derive security prices through recently reported trades for identical or similar securities making adjustments through the reporting date based upon observable market information. If there are no recently reported trades, the third-party pricing services may use matrix or model processes to develop a security price where future cash flow expectations are discounted at an estimated risk-adjusted market rate. The number of prices obtained for a given security is dependent on the Company's analysis of such prices as further described below. As the Company is responsible for the determination of fair value, we have control processes designed to ensure that the fair values received from third-party pricing sources are reasonable and the valuation techniques and assumptions used appear reasonable and consistent with prevailing market conditions. Additionally, when inputs are provided by third-party pricing sources, we have controls in place to review those inputs for reasonableness. As part of these controls, we perform monthly quantitative and qualitative analysis on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. The Company's analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) where available, a comparison of multiple pricing services' valuations for the same security; (iii) a review of month to month price fluctuations; (iv) a review to ensure valuations are not unreasonably dated; and (v) back testing to compare actual purchase and sale transactions with valuations received from third parties. As a result of such procedures, the Company may conclude a particular price received from a third-party is not reflective of current market conditions. In those instances, we may request additional pricing quotes or apply internally developed valuations. However, the number of such instances is insignificant and the aggregate change in value of such investments is not materially different from the original prices received. The categorization of the fair value measurements of our investments priced by independent pricing services was based upon the Company's judgment of the inputs or methodologies used by the independent pricing services to value different asset classes. The Company categorizes such fair value measurements based upon asset classes and the underlying observable or unobservable inputs used to value such investments. For securities that are not priced by pricing services and may not be reliably priced using pricing models, we obtain broker quotes. These broker quotes are non-binding and represent an exit price, but assumptions used to establish the fair value may not be observable and therefore represent Level 3 inputs. Approximately 98 percent of our Level 3 fixed maturity securities and trading securities were valued using unadjusted broker quotes or broker-provided valuation inputs. The remaining Level 3 fixed maturity investments do not have readily determinable market prices and/or observable inputs. For these securities, we use internally developed valuations. Key assumptions used to determine fair value for these securities may include risk premiums, projected performance of underlying collateral and other factors involving significant assumptions which may not be reflective of an active market. For certain investments, we use a matrix or model process to develop a security price where future cash flow expectations are discounted at an estimated market rate. The pricing matrix incorporates term interest rates as well as a spread level based on the issuer's credit rating, other factors relating to the issuer, and the security's maturity. In some instances issuer-specific spread adjustments, which can be positive or negative, are made based upon internal analysis of security specifics such as liquidity, deal size, and time to maturity.

BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Errors on Prior Period

The Company assessed the materiality of these errors on prior period consolidated financial statements and determined that such financial statements were not materially misstated. Accordingly, the Company corrected these immaterial errors in this Quarterly Report on Form 10-Q. The following tables present the impact of the correction of the immaterial errors related to the overstatement of policy holder account balances and insurance policy benefits recorded, the classification of non-redeemable preferred stock and to reflect an unsettled investment trade by one of our variable interest entities for the year ended December 31, 2024 and for the three months ended March 31, 2025 (in millions):


Consolidated Balance Sheet
	December 31, 2024
	As Previously Reported		Adjustments		As Revised
Investments
Fixed maturities, available for sale, at fair value	$	22,840.5	$	(110.4)	$	22,730.1
Equity securities at fair value	162.0		110.4		272.4
Investments held by variable interest entities	432.3		1.5		433.8
Total investments	27,872.1		1.5		27,873.6
Income tax assets, net	818.9		(4.8)		814.1
Total assets	$	37,852.6	$	(3.3)	$	37,849.3

Liabilities:
Policyholder account balances	$	17,615.8	$	(21.6)	$	17,594.2
Other liabilities	1,161.8		1.5		1,163.3
Total Liabilities	35,354.2		(20.1)		$	35,334.1

Shareholders' equity:
Retained earnings	2,236.3		16.8		2,253.1
Total shareholders' equity	2,498.4		16.8		2,515.2
Total liabilities and shareholders' equity	$	37,852.6	$	(3.3)	$	37,849.3


Consolidated Statement of Shareholders' Equity
	Retained earnings
Balance, December 31, 2024	$	2,236.3
Correction of immaterial error	16.8
Balance, December 31, 2024 (as revised)	$	2,253.1

Balance, March 31, 2025	$	2,233.6
Correction of immaterial error	24.6
Balance, March 31, 2025 (as revised)	$	2,258.2

The following tables present line items for prior period impacts to the Company’s consolidated statement of operations that have been affected by the immaterial error discussed above and that will be revised in conjunction with future filings (in millions):


	Year ended December 31, 2024
	As previously reported		Adjustments		As Revised
Insurance policy benefits	$	2,471.9	$	(21.6)	$	2,450.3
Total benefits and expenses	3,931.2		(21.6)		3,909.6
Income before income taxes	518.3		21.6		539.9
Income tax expense	114.3		4.8		119.1
Net income	404.0		16.8		420.8

Basic earnings per common share	$	3.81	$	0.15	$	3.96
Diluted earnings per common share	$	3.74	$	0.15	$	3.89


	Three months ended March 31, 2025
	As previously reported		Adjustments		As Revised
Insurance policy benefits	$	580.1	$	(10.1)	$	570.0
Total benefits and expenses	986.4		(10.1)		976.3
Income before income taxes	17.7		10.1		27.8
Income tax expense	4.0		2.3		6.3
Net income	13.7		7.8		21.5

Basic earnings per common share	$	0.14	$	0.07	$	0.21
Diluted earnings per common share	$	0.13	$	0.08	$	0.21

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of Fixed Maturities for Available for Sale Securities

At September 30, 2025, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Estimated fair value
Corporate securities	$	14,226.1	$	158.2	$	(1,352.0)	$	(27.5)	$	13,004.8
Certificates of deposit	—		—		—		—		—
United States Treasury securities and obligations of United States government corporations and agencies	206.2		—		(26.8)		—		179.4
States and political subdivisions	3,346.9		27.3		(375.7)		(2.8)		2,995.7
Foreign governments	121.9		1.1		(10.7)		(0.6)		111.7
Asset-backed securities	1,547.1		11.9		(43.2)		(0.1)		1,515.7
Agency residential mortgage-backed securities	896.0		11.9		(0.5)		—		907.4
Non-agency residential mortgage-backed securities	1,569.7		38.6		(96.9)		—		1,511.4
Collateralized loan obligations	1,127.4		3.2		(4.5)		—		1,126.1
Commercial mortgage-backed securities	2,178.0		5.9		(128.8)		(2.0)		2,053.1
Total fixed maturities, available for sale	$	25,219.3	$	258.1	$	(2,039.1)	$	(33.0)	$	23,405.3

At December 31, 2024, the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and estimated fair value of fixed maturities, available for sale, were as follows (dollars in millions):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Estimated fair value
Corporate securities	$	13,672.1	$	60.2	$	(1,660.4)	$	(31.1)	$	12,040.8
Certificates of deposit	470.0		18.3		—		—		488.3
United States Treasury securities and obligations of United States government corporations and agencies	214.8		—		(28.6)		—		186.2
States and political subdivisions	3,261.9		12.2		(436.4)		(3.4)		2,834.3
Foreign governments	107.2		0.1		(15.3)		(0.9)		91.1
Asset-backed securities	1,574.6		8.3		(66.4)		(0.1)		1,516.4
Agency residential mortgage-backed securities	819.8		5.3		(5.5)		—		819.6
Non-agency residential mortgage-backed securities	1,636.3		33.6		(130.8)		—		1,539.1
Collateralized loan obligations	1,015.2		5.6		(4.0)		—		1,016.8
Commercial mortgage-backed securities	2,379.1		3.7		(183.7)		(1.6)		2,197.5
Total fixed maturities, available for sale	$	25,151.0	$	147.3	$	(2,531.1)	$	(37.1)	$	22,730.1

Schedule of Investments Classified by Contractual Maturity Date

The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale at September 30, 2025 by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Structured securities (such as asset-backed securities, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, collateralized loan obligations and commercial mortgage-backed securities, collectively referred to as "structured securities") frequently include provisions for periodic principal payments and permit periodic unscheduled payments.


	Amortized cost		Estimated fair value
	(Dollars in millions)
Due in one year or less	$	268.0	$	266.9
Due after one year through five years	2,261.0		2,258.5
Due after five years through ten years	2,481.3		2,519.2
Due after ten years	12,890.8		11,247.0
Subtotal	17,901.1		16,291.6
Structured securities	7,318.2		7,113.7
Total fixed maturities, available for sale	$	25,219.3	$	23,405.3

Schedule of Unrealized Loss on Investments

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position at September 30, 2025 (dollars in millions):


	Less than 12 months				12 months or greater				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Corporate securities	$	198.2	$	(3.4)	$	3,153.4	$	(449.7)	$	3,351.6	$	(453.1)
United States Treasury securities and obligations of United States government corporations and agencies	18.3		(1.7)		154.2		(25.1)		172.5		(26.8)
States and political subdivisions	203.9		(2.0)		861.7		(128.1)		1,065.6		(130.1)
Foreign governments	—		—		20.8		(0.9)		20.8		(0.9)
Asset-backed securities	37.9		(0.3)		621.9		(42.1)		659.8		(42.4)
Agency residential mortgage-backed securities	21.3		(0.1)		45.1		(0.4)		66.4		(.5)
Non-agency residential mortgage-backed securities	84.2		(0.4)		762.5		(96.5)		846.7		(96.9)
Collateralized loan obligations	284.3		(2.4)		66.8		(2.1)		351.1		(4.5)
Commercial mortgage-backed securities	170.9		(0.6)		1,234.4		(128.2)		1,405.3		(128.8)
Total fixed maturities, available for sale	$	1,019.0	$	(10.9)	$	6,920.8	$	(873.1)	$	7,939.8	$	(884.0)

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position at December 31, 2024 (dollars in millions):


	Less than 12 months				12 months or greater				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Corporate securities	$	1,200.8	$	(35.5)	$	4,029.2	$	(740.3)	$	5,230.0	$	(775.8)
United States Treasury securities and obligations of United States government corporations and agencies	44.7		(3.8)		141.5		(24.8)		186.2		(28.6)
States and political subdivisions	831.9		(20.5)		896.1		(212.1)		1,728.0		(232.6)
Foreign governments	17.4		(1.0)		10.0		(1.0)		27.4		(2.0)
Asset-backed securities	124.8		(1.2)		807.9		(64.3)		932.7		(65.5)
Agency residential mortgage-backed securities	297.1		(5.3)		3.1		(0.2)		300.2		(5.5)
Non-agency residential mortgage-backed securities	128.0		(1.4)		884.6		(129.4)		1,012.6		(130.8)
Collateralized loan obligations	162.9		(0.7)		66.9		(3.2)		229.8		(3.9)
Commercial mortgage-backed securities	174.5		(1.2)		1,642.7		(182.5)		1,817.2		(183.7)
Total fixed maturities, available for sale	$	2,982.1	$	(70.6)	$	8,482.0	$	(1,357.8)	$	11,464.1	$	(1,428.4)

Schedule of Changes in the Allowance for Current Expected Credit Losses

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three months ended September 30, 2025 (dollars in millions):


	Corporate securities		Other		Total
Allowance at June 30, 2025	$	33.1	$	6.0	$	39.1
Additions for securities for which credit losses were not previously recorded	0.4		—		0.4
Additions (reductions) for securities where an allowance was previously recorded	(4.6)		(0.5)		(5.1)
Reduction for securities disposed during the period	(1.4)		—		(1.4)
Allowance at September 30, 2025	$	27.5	$	5.5	$	33.0

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the nine months ended September 30, 2025 (dollars in millions):


	Corporate securities		Other		Total
Allowance at December 31, 2024	$	31.1	$	6.0	$	37.1
Additions for securities for which credit losses were not previously recorded	3.5		—		3.5
Additions (reductions) for securities where an allowance was previously recorded	(3.7)		(0.5)		(4.2)
Reduction for securities disposed during the period	(3.4)		—		(3.4)
Allowance at September 30, 2025	$	27.5	$	5.5	$	33.0

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the three months ended September 30, 2024 (dollars in millions):


	Corporate securities		Other		Total
Allowance at June 30, 2024	$	38.6	$	1.2	$	39.8
Additions for securities for which credit losses were not previously recorded	1.1		—		1.1
Additions (reductions) for securities where an allowance was previously recorded	(6.6)		0.2		(6.4)
Reduction for securities disposed during the period	(8.6)		—		(8.6)
Allowance at September 30, 2024	$	24.5	$	1.4	$	25.9

The following table summarizes changes in the allowance for credit losses related to fixed maturities, available for sale, for the nine months ended September 30, 2024 (dollars in millions):


	Corporate securities		Other		Total
Allowance at December 31, 2023	$	41.7	$	1.2	$	42.9
Additions for securities for which credit losses were not previously recorded	5.4		0.1		5.5
Additions (reductions) for securities where an allowance was previously recorded	(12.8)		0.2		(12.6)
Reduction for securities disposed during the period	(9.8)		(0.1)		(9.9)
Allowance at September 30, 2024	$	24.5	$	1.4	$	25.9

The following table summarizes changes in the allowance for credit losses related to corporate securities held by VIEs (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Allowance at the beginning of the period	$	2.3	$	2.8	$	1.3	$	3.1
Additions for securities for which credit losses were not previously recorded	0.2		0.2		1.3		0.6
Additions (reductions) for securities where an allowance was previously recorded	—		0.2		1.4		2.1
Reduction for securities disposed during the period	(2.0)		(1.4)		(3.5)		(4.0)
Allowance at the end of the period	$	0.5	$	1.8	$	0.5	$	1.8

Schedule of Carrying Value and Estimated Fair Value of Outstanding Commercial Mortgage Loans and Underlying Collateral

The following table provides the amortized cost by year of origination and estimated fair value of our outstanding commercial mortgage loans and the underlying collateral as of September 30, 2025 (dollars in millions):


															Estimated fair value
Loan-to-value ratio (a)	2025		2024		2023		2022		2021		Prior		Total amortized cost		Commercial mortgage loans		Collateral
Less than 60%	$	165.2	$	169.4	$	179.5	$	142.1	$	113.2	$	455.2	$	1,224.6	$	1,165.6	$	3,987.9
60% to less than 70%	105.4		15.0		36.4		24.1		18.0		36.3		235.2		218.8		362.0
70% to less than 80%	—		—		59.6		51.0		—		22.8		133.4		120.9		181.0
80% to less than 90%	10.1		—		—		61.0		—		—		71.1		64.2		88.3
90% to less than 100%	—		—		—		—		7.8		1.9		9.7		7.6		9.8

Total	$	280.7	$	184.4	$	275.5	$	278.2	$	139.0	$	516.2	$	1,674.0	$	1,577.1	$	4,629.0

________________

(a)Loan-to-value ratios are calculated as the ratio of: (i) the amortized cost of the commercial mortgage loans; to (ii) the estimated fair value of the underlying collateral.

Schedule of Changes in the Allowance for Current Expected Credit Losses Related to Mortgage Loans

The following table summarizes changes in the allowance for credit losses related to mortgage loans for the periods indicated (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Allowance at the beginning of the period	$	21.1	$	13.2	$	13.6	$	15.4
Increase (decrease) in provision for expected credit losses	(0.1)		3.3		7.4		1.1
Allowance at the end of the period	$	21.0	$	16.5	$	21.0	$	16.5

Schedule of Realized Gain (Loss) on Investments

The following table sets forth the total investment gains (losses) for the periods indicated (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Realized investment gains (losses):
Gross realized gains on sales of fixed maturities, available for sale	$	1.9	$	6.3	$	4.8	$	9.3
Gross realized losses on sales of fixed maturities, available for sale	(18.1)		(12.8)		(42.7)		(46.3)
Equity securities, net	0.7		—		0.2		(0.1)
Other, net	2.6		(6.6)		(0.3)		(12.3)
Total realized investment losses	(12.9)		(13.1)		(38.0)		(49.4)
Change in allowance for credit losses	8.0		1.6		(2.6)		7.2
Change in fair value of equity securities (a)	1.4		2.8		3.5		3.0
Other changes in fair value (b) (c)	0.5		9.8		8.9		27.1
Gain on liquidation of variable interest entities	—		0.1		—		3.9
Other investment gains (losses)	9.9		14.3		9.8		41.2
Total investment gains (losses)	$	(3.0)	$	1.2	$	(28.2)	$	(8.2)

_________________

(a) Changes in the estimated fair value of equity securities (that are still held as of the end of the respective periods) were $1.7 million and $2.8 million for the three months ended September 30, 2025 and 2024, respectively, and were $5.9 million and $3.1 million for the nine months ended September 30, 2025 and 2024, respectively.

(b) Other changes in fair value are comprised of (i) gains related to certain other invested assets and fixed maturity investments with embedded derivatives, including the change in fair value, of nil and $8.1 million for the three months ended September 30, 2025 and 2024, respectively, and $7.1 million and $25.2 million for the nine months ended September 30, 2025 and 2024, respectively; and (ii) the increase in fair value of embedded derivatives related to a modified coinsurance agreement of $0.5 million and $1.7 million for the three months ended September 30, 2025 and 2024, respectively, and $1.8 million and $1.9 million for the nine months ended September 30, 2025 and 2024, respectively.

(c) Changes in the estimated fair value of fixed maturity investments with embedded derivatives that we have elected the fair value option (that are still held as of the end of the respective periods) were $3.0 million and $6.1 million for the three months ended September 30, 2025 and 2024, respectively, and $10.1 million and $10.8 million for the nine months ended September 30, 2025 and 2024, respectively.

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

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 September 30, 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	$	—	$	12,522.6	$	482.2	$	13,004.8
Certificates of deposit	—		—		—		—
United States Treasury securities and obligations of United States government corporations and agencies	—		179.4		—		179.4
States and political subdivisions	—		2,995.7		—		2,995.7
Foreign governments	—		111.7		—		111.7
Asset-backed securities	—		1,421.1		94.6		1,515.7
Agency residential mortgage-backed securities	—		907.4		—		907.4
Non-agency residential mortgage-backed securities	—		1,511.4		—		1,511.4
Collateralized loan obligations	—		1,126.1		—		1,126.1
Commercial mortgage-backed securities	—		2,044.4		8.7		2,053.1
Total fixed maturities, available for sale	—		22,819.8		585.5		23,405.3

Equity securities - corporate securities	150.6		131.0		74.2		355.8

Trading securities:
Corporate securities	—		—		—		—



Asset-backed securities	—		39.4		—		39.4
Agency residential mortgage-backed securities	—		98.0		—		98.0
Non-agency residential mortgage-backed securities	—		45.9		—		45.9
Collateralized loan obligations	—		9.6		—		9.6
Commercial mortgage-backed securities	—		104.0		—		104.0

Total trading securities	—		296.9		—		296.9
Investments held by variable interest entities - corporate securities	—		296.8		—		296.8
Other invested assets:
Derivatives	—		297.2		—		297.2
Residual tranches	—		—		2.6		2.6
Total other invested assets	—		297.2		2.6		299.8

Assets held in separate accounts	—		2.7		—		2.7
Total assets carried at fair value by category	$	150.6	$	23,844.4	$	662.3	$	24,657.3
Equity securities measured at net asset value							21.4
Total assets carried at fair value							$	24,678.7

Liabilities:
Market risk benefit liability	$	—	$	—	$	52.6	$	52.6
Embedded derivatives associated with fixed indexed annuity products	—		—		1,598.4		1,598.4
Total liabilities carried at fair value	$	—	$	—	$	1,651.0	$	1,651.0

The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 31, 2024 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	$	—	$	11,912.8	$	128.0	$	12,040.8
Certificates of deposit	—		488.3		—		488.3
United States Treasury securities and obligations of United States government corporations and agencies	—		186.2		—		186.2
States and political subdivisions	—		2,834.3		—		2,834.3
Foreign governments	—		91.1		—		91.1
Asset-backed securities	—		1,496.6		19.8		1,516.4
Agency residential mortgage-backed securities	—		819.6		—		819.6
Non-agency residential mortgage-backed securities	—		1,539.1		—		1,539.1
Collateralized loan obligations	—		1,012.8		4.0		1,016.8
Commercial mortgage-backed securities	—		2,193.4		4.1		2,197.5
Total fixed maturities, available for sale	—		22,574.2		155.9		22,730.1

Equity securities - corporate securities	64.0		134.9		73.4		272.3


Trading securities:



Asset-backed securities	—		40.6		—		40.6
Agency residential mortgage-backed securities	—		97.1		—		97.1
Non-agency residential mortgage-backed securities	—		53.3		—		53.3
Collateralized loan obligations	—		9.5		—		9.5
Commercial mortgage-backed securities	—		103.7		—		103.7

Total trading securities	—		304.2		—		304.2
Investments held by variable interest entities - corporate securities	—		433.8		—		433.8
Other invested assets:
Derivatives	—		279.0		—		279.0
Residual tranches	—		1.5		95.4		96.9
Total other invested assets	—		280.5		95.4		375.9

Assets held in separate accounts	—		3.3		—		3.3
Total assets carried at fair value	$	64.0	$	23,730.9	$	324.7	$	24,119.6

Liabilities:
Market risk benefit liability	$	—	$	—	$	60.0	$	60.0
Embedded derivatives associated with fixed indexed annuity products	—		—		1,471.6		1,471.6
Total liabilities carried at fair value	$	—	$	—	$	1,531.6	$	1,531.6

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 September 30, 2025 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	454.6	$	94.4	$	—	$	2.6	$	551.6
Gains (losses) included in net income	(2.0)		0.3		—		—		(1.7)
Gains (losses) included in accumulated other comprehensive loss	4.2		—		—		—		4.2
Purchases, sales, issuances and settlements (b)
Purchases	177.5		—		—		—		177.5
Sales	(9.7)		—		—		—		(9.7)
Transfers into Level 3 (a)	10.5		—		—		—		10.5
Transfers out of Level 3 (a)	(49.6)		(20.5)		—		—		(70.1)
End of period	$	585.5	$	74.2	$	—	$	2.6	$	662.3

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(2.0)	$	0.3	$	—	$	—	$	(1.7)
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	3.9	$	—	$	—	$	—	$	3.9

_________

(a)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.

(b)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 September 30, 2025.

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 nine months ended September 30, 2025 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	155.9	$	73.4	$	—	$	95.4	$	324.7
Gains (losses) included in net income	(0.3)		0.8		—		—		0.5
Gains (losses) included in accumulated other comprehensive loss	1.2		—		—		—		1.2
Purchases, sales, issuances and settlements (b)
Purchases	420.0		—		—		—		420.0
Sales	(24.0)		—		—				(24.0)
Transfers into Level 3 (a)	89.8		—		—		—		89.8
Transfers out of Level 3 (a)	(57.1)		—		—		(92.8)		(149.9)
End of period	$	585.5	$	74.2	$	—	$	2.6	$	662.3

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	(0.3)	$	0.9	$	—	$	—	$	0.6
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—

_________

(a)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.

(b)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 nine months ended September 30, 2025.

The following table summarizes changes in the value of our embedded derivatives associated with fixed indexed annuity products (classified in policyholder account balances and future policy benefits 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				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Balance at beginning of the period	$	1,502.4	$	1,418.0	$	1,471.6	$	1,376.7
Premiums less benefits	(7.4)		(19.4)		(23.4)		(56.3)
Change in fair value, net	103.4		153.3		150.2		231.5
Balance at end of the period	$	1,598.4	$	1,551.9	$	1,598.4	$	1,551.9

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

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 September 30, 2024 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	153.5	$	72.8	$	2.8	$	66.0	$	295.1
Gains (losses) included in net income	(2.4)		0.6		—		0.4		(1.4)
Gains (losses) included in accumulated other comprehensive loss	6.6		—		—		—		6.6
Purchases, sales, issuances and settlements (b)
Purchases	12.3		—		—		10.6		22.9
Sales	(12.0)		—		—		(1.0)		(13.0)
Transfers into Level 3 (a)	12.4		—		—		—		12.4
Transfers out of Level 3 (a)	(14.3)		—		(2.8)		—		(17.1)
End of period	$	156.1	$	73.4	$	—	$	76.0	$	305.5

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	0.1	$	0.5	$	—	$	0.4	$	1.0
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	5.8	$	—	$	—	$	—	$	5.8

_________

(a)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.

(b)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 September 30, 2024.

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 nine months ended September 30, 2024 (dollars in millions):


	Fixed Maturities		Equity Securities		Trading Securities		Other Invested Assets		Total
Beginning of period	$	197.9	$	72.7	$	—	$	31.5	$	302.1
Gains (losses) included in net income	1.9		0.7		—		12.3		14.9
Gains (losses) included in accumulated other comprehensive loss	(1.9)		—		—		—		(1.9)
Purchases, sales, issuances and settlements (b)
Purchases	17.8		—		—		30.0		47.8
Sales	(21.1)		—		—		(5.3)		(26.4)
Transfers into Level 3 (a)	—		—		—		7.5		7.5
Transfers out of Level 3 (a)	(38.5)		—		—		—		(38.5)
End of period	$	156.1	$	73.4	$	—	$	76.0	$	305.5

Change in unrealized gains or losses for the period included in net income for assets held at the end of the reporting period	$	4.4	$	0.8	$	—	$	12.3	$	17.5
Change in unrealized gains or losses for the period included in other comprehensive loss for assets held at the end of the reporting period	$	(4.4)	$	—	$	—	$	—	$	(4.4)

_________

(a)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.

(b)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 nine months ended September 30, 2024.

Schedule of Fair Value Measurement Inputs