The combined statutory net income, excluding intercompany dividends and surplus note interest, and capital and
surplus of the Company’s U.S. domiciled statutory insurance subsidiaries is as follows:
|
Years Ended December 31,
|
|
2022
|
2021
|
2020
|
Property and Casualty ("P&C") companies |
$283.5
|
$468.0
|
$445.5
|
Life and Health ("L&H") companies |
20.0
|
18.6
|
98.3
|
Total statutory net income (1) |
$303.5 |
$486.6 |
$543.8 |
(1)There was no statutory net income for the years ended December 31, 2022 and 2021 from the insurance entities included in the disposed Global Preneed business due to the August 2021 sale.
|
December 31,
|
|
2022
|
2021
|
P&C companies |
$1,472.2
|
$1,529.1
|
L&H companies |
80.2
|
120.3
|
Total statutory capital and surplus(1) |
$1,552.4
|
$1,649.4
|
(1)There was no statutory capital and surplus as of December 31, 2022 and 2021 from the insurance entities included in the disposed Global Preneed business.
The Company also has non-insurance subsidiaries and foreign insurance subsidiaries that are not subject to SAP. The statutory net income and statutory capital and surplus amounts presented above do not include non-insurance subsidiaries and foreign insurance subsidiaries in accordance with SAP.
Insurance enterprises are required by state insurance departments to adhere to minimum RBC requirements developed by the NAIC. All of the Company’s insurance subsidiaries exceed minimum RBC requirements.
The payment of dividends to the Company by any of the Company’s regulated U.S domiciled insurance subsidiaries in excess of a certain amount (i.e., extraordinary dividends) must be approved by the subsidiary’s domiciliary jurisdiction department of insurance. Ordinary dividends, for which no regulatory approval is generally required, are limited to amounts determined by a formula, which varies by jurisdiction. The formula for the majority of the jurisdictions in which the Company’s subsidiaries are domiciled is based on the prior year’s statutory net income or 10% of the statutory surplus as of the end of the prior year. Some jurisdictions limit ordinary dividends to the greater of these two amounts, others limit them to the lesser of these two amounts and some jurisdictions exclude prior year realized capital gains from prior year net income in determining ordinary dividend capacity. Some jurisdictions have an additional stipulation that dividends may only be paid out of earned surplus. If insurance regulators determine that payment of an ordinary dividend or any other payments by the Company’s insurance subsidiaries to the Company (such as payments under a tax sharing agreement or payments for employee or other services) would be adverse to policyholders or creditors, the regulators may block such payments that would otherwise be permitted without prior approval. Based on the dividend restrictions under applicable laws and regulations, the maximum amount of dividends that the Company’s U.S domiciled insurance subsidiaries could pay to the Company in 2023 without regulatory approval is approximately $344.7 million. No assurance can be given that there will not be further regulatory actions restricting the ability of the Company’s insurance subsidiaries to pay dividends.