Discontinued Operations and Disposal Groups

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Disposition of RMIC Companies, Inc. (RMICC)

On November 11, 2023, a definitive agreement was reached to sell RMIC Companies, Inc. and its wholly-owned mortgage insurance subsidiaries (collectively, "RMICC") to Arch U.S. MI Holdings Inc., a subsidiary of Arch Capital Group Ltd., for approximately $140.0. In connection with the pending sale, an expected loss of $45.6, inclusive of transaction costs of $11.0, was recorded for the year ended December 31, 2023, which is reflected in net investment gains (losses) in the consolidated statement of income. RMICC’s results of operations are reported in the RFIG segment’s earnings through December 31, 2023. The transaction is expected to receive all necessary regulatory approvals and close in the first half of 2024.

As of December 31, 2023, the pending disposition met the criteria for held-for-sale accounting, but did not meet the criteria to be classified as a discontinued operation as it did not represent a strategic shift that has, or will have, a major effect on the Company's operations and financial results. As a result, the related assets and liabilities are included in the separate held-for-sale line items of the asset and liability sections of the consolidated balance sheet, and the results are reported in continuing operations on the consolidated statement of income. See Note 1 for information on accounting for held-for-sale classification.

The table below reflects the carrying amounts of assets and liabilities held-for-sale related to the pending disposition described above:

	December 31, 2023
Assets:
Investments:
Fixed income securities (at fair value)	$	29.8
Short-term investments (at fair value which approximates cost)	191.3
Total investments	221.2
Cash	0.8
Accrued investment income	0.9
Accounts and notes receivable	0.5
Federal income tax recoverable: Current	2.2
Deferred	0.2
Other assets (a)	(31.1)
Total assets	$	194.8
Liabilities:
Policy liabilities:
Loss and loss adjustment expense reserves	$	54.9
Unearned premiums	0.1
Total policy liabilities	55.0
Commissions, expenses, fees, and taxes	1.2
Other liabilities	0.5
Total liabilities	$	56.8

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(a) Other assets is presented net of a valuation allowance of $34.5 recorded upon remeasurement of the disposal group to fair value.