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Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The majority of the goodwill recorded as of June 30, 2022 and 2021, and December 31, 2021, related to the April 1, 2015, acquisition of a controlling interest in ARX. In connection with the preparation of our second quarter 2022 financial results, we recorded an impairment loss of $224.8 million, which is disclosed as a separate line item in our consolidated statements of comprehensive income. The impairment loss was fully allocated to our Property segment. There were no previously recorded accumulated impairment losses and there are no other accumulated goodwill impairment losses on any of the outstanding goodwill.
We performed the interim test of our goodwill for impairment for the ARX reporting unit. The indicators of impairment primarily related to the magnitude of recent weather events relative to forecasted expectations, as well as other factors impacting our plans to restore our Property business to target profitability in a timely fashion and the subsequent reduced forecasted profitability of ARX. As a result, we determined it was more likely than not that the fair value of the ARX reporting unit was less than its carrying value.
The quantitative goodwill impairment assessment consisted of comparing the fair value of the reporting unit to its carrying value. To determine the fair value of a reporting unit, we use a discounted cash flow model. The model uses assumptions including, but not limited to, discount rate, and forecasted growth, profitability, investment return, and capital requirements. The assumptions and estimates are consistent with those we believe other non-related marketplace participants would use and are based on management’s best estimates at the time of the analysis. The calculated fair value of the ARX reporting unit was below its carrying value at June 30, 2022, which resulted in recording a goodwill impairment. There was no indication of impairment on the remaining $227.9 million goodwill, of which 98% was attributable to our Personal Lines Agency business and related to the ARX acquisition.
Intangible Assets
The following table is a summary of the net carrying amount of other intangible assets:
(millions)June 30, 2022June 30, 2021December 31, 2021
Intangible assets subject to amortization$84.8 $134.1 $104.9 
Indefinite-lived intangible assets1
12.4 12.4 12.4 
Total$97.2 $146.5 $117.3 
1 Indefinite-lived intangible assets are comprised of state insurance and agent licenses. State insurance licenses were previously subject to amortization under superseded accounting guidance and have $0.6 million of accumulated amortization for all periods presented.
Intangible assets subject to amortization consisted of the following:
(millions)June 30, 2022June 30, 2021December 31, 2021
CategoryGross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Policies in force$0 $0 $0 $256.2 $228.7 $27.5 $256.2 $247.1 $9.1 
Agency relationships159.2 82.5 76.7 159.2 71.1 88.1 159.2 76.8 82.4 
Software rights 69.1 62.6 6.5 69.1 54.0 15.1 69.1 58.3 10.8 
Trade name3.6 2.0 1.6 3.6 0.2 3.4 3.6 1.0 2.6 
Total$231.9 $147.1 $84.8 $488.1 $354.0 $134.1 $488.1 $383.2 $104.9 
Amortization expense was $5.5 million and $20.1 million for the three and six months ended June 30, 2022, respectively, compared to $14.3 million and $28.5 million during the same periods last year. During the first quarter 2022, the policies in
force intangible asset, with a gross carrying value of $256.2 million, was fully amortized.