Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Effective Income Tax Rate Reconciliation

The provision for combined current and deferred income taxes (credits) reflected in the consolidated statements of income may not bear the usual relationship to income before income taxes (credits) as the result of permanent and other differences between pretax income or loss and taxable income or loss determined under existing tax regulations. The more significant differences, their effect on the statutory income tax rate (credit), and the resulting effective income tax rates (credits) are summarized below:


Years Ended December 31:	2023		2022		2021
Statutory tax rate	21.0	%	21.0	%	21.0	%
Tax rate increases (decreases):
Tax-exempt interest	(0.4)		(0.3)		(0.2)
Dividends received exclusion	(1.0)		(1.3)		(0.7)
Meals and entertainment	0.3		0.2		0.1

Other items - net	—		0.3		—
Effective tax rate	19.9	%	19.9	%	20.2	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the Company's net deferred tax assets (liabilities) are as follows at the dates shown:


December 31:	2023		2022		2021
Deferred Tax Assets:
Loss and loss adjustment expense reserves	$	214.9	$	218.6	$	214.2
Pension and deferred compensation plans	23.8		22.6		42.4
Realized loss from pending sale of mortgage insurance business	9.5		—		—
Net operating loss carryforward	5.5		7.6		9.6
AMT credit carryforward	9.0		9.0		9.0
Operating leases	46.4		46.7		49.7
Other temporary differences	16.3		17.1		12.3
Total deferred tax assets	325.4		321.6		337.5
Deferred Tax Liabilities:
Unearned premium reserves	46.3		63.3		61.0
Deferred policy acquisition costs	82.8		76.0		68.5

Amortization of fixed income securities	14.6		6.8		5.2
Net unrealized investment gains	214.4		141.3		372.6
Title plants and records	2.8		2.8		2.8
Tax reform transition adjustment on loss and loss adjustment
expense reserves	6.7		10.3		13.8
Operating leases	40.9		41.9		45.8
Other temporary differences	22.5		20.1		17.2
Total deferred tax liabilities	431.0		362.5		586.9
Net deferred tax liabilities (a)	$	(105.6)	$	(40.9)	$	(249.5)

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(a) RFIG Run-off deferred tax assets of $0.3 and deferred tax liabilities of $0.1 have been reclassified as held-for-sale as of December 31, 2023. See Note 2 for further discussion.