Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income Tax Assets and Liabilities

The income tax assets and liabilities included in Other Assets and Other Liabilities, respectively, in the Consolidated Balance Sheets were as follows:


($ in millions)	December 31,
	2025		2024
Income tax (asset) liability
Current	$	(6.4)	$	(28.1)
Deferred	65.5		55.8

Schedule of Deferred Tax Assets and Liabilities

The "temporary differences" that gave rise to the deferred tax balances were as follows:


($ in millions)	December 31,
	2025		2024
Deferred tax assets
Other comprehensive income - net unrealized losses on securities	$	50.0	$	85.2
Unearned premium reserve reduction	15.1		14.4
Compensation accruals	12.7		9.3
Impaired securities	3.2		2.3
Other comprehensive income - net funded status of benefit plans	0.7		1.9
Discounting of unpaid claims and claim expense tax reserves	2.9		2.9
Capital loss carryforward	—		1.2
Net operating loss carryforward	—		0.6

Postretirement benefits other than pensions	0.2		0.2
Other comprehensive income - net reserve remeasurements	4.7		—
Total gross deferred tax assets	89.5		118.0
Deferred tax liabilities

Deferred policy acquisition costs	47.1		47.8
Life insurance future policy benefit reserve	81.5		52.7
Life insurance future policy benefit reserve (transitional rule)	—		2.1
Discounting of unpaid claims and claim expense tax reserves (transitional rule)	—		0.2
Investment related adjustments	15.4		37.7
Intangibles	1.2		1.6
Other comprehensive income - net reserve remeasurements	—		23.8
Other, net	9.8		7.9
Total gross deferred tax liabilities	155.0		173.8
Net deferred tax liability	$	65.5	$	55.8

Schedule of Continuing Operations Before Income Taxes

Income from continuing operations before income taxes for the years ended December 31, 2025, 2024, and 2023 was entirely domestic as follows:


($ in millions)	Years Ended December 31,
	2025		2024		2023
Domestic	$	201.2	$	128.6	$	53.3
Foreign	—		—		—
Total income tax expense (benefit)	$	201.2	$	128.6	$	53.3

Schedule of Income Tax (Expense) Benefit Related to Federal, State and Local Jurisdictions

Income tax expense (benefit) for the following periods relates solely to U.S. federal, state, and local taxing jurisdictions.


($ in millions)	Years Ended December 31,
	2025		2024		2023
Current Tax Expense (Benefit)
Federal	$	55.1	$	18.5	$	5.6
State and Local	1.3		1.4		0.9

Total Current Tax Expense (Benefit)	56.4		19.9		6.5
Deferred Tax Expense (Benefit)
Federal	(17.2)		6.1		2.8
State and Local	(0.1)		(0.2)		(1.0)

Total Deferred Tax Expense (Benefit)	(17.3)		5.9		1.8
Total Income Tax Expense (Benefit)
Federal	37.9		24.6		8.4
State and Local	1.2		1.2		(0.1)

Total Income Tax Expense (Benefit)	$	39.1	$	25.8	$	8.3

Schedule of Income Taxes Expenses Reconciliation

Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 21% for 2025, 2024 and 2023 to income before income taxes as follows:


($ in millions)	Years Ended December 31,
	2025				2024				2023
	Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income
U.S. Federal Statutory Tax Rate (21%)	$	42.2	21.0	%	$	27.0	21.0	%	$	11.2	21.0	%
State and Local Income Taxes, Net of Federal Income Tax Effect (1)	0.9		0.4	%	1.0		0.8	%	(0.1)		(0.2)	%



Tax Credits	(1.5)		(0.7)	%	—		—	%	—		—	%

Nontaxable or Nondeductible Items
Compensation Deduction Limitation	2.0		1.0	%	2.7		2.1	%	0.8		1.5	%
Dividend Received Deduction	(2.3)		(1.1)	%	(2.0)		(1.6)	%	(1.3)		(2.4)	%
Prior Year Adjustments	0.3		0.1	%	(0.4)		(0.3)	%	0.3		0.6	%
Research and Development Reserve	—		—	%	—		—	%	(0.2)		(0.4)	%
Share-Based Payment Awards	(0.5)		(0.2)	%	(0.2)		(0.2)	%	0.1		0.2	%
Tax-Exempt Interest Income	(2.4)		(1.2)	%	(2.5)		(1.9)	%	(2.7)		(5.1)	%
Other	0.4		0.2	%	0.2		0.2	%	0.2		0.4	%


Effective Tax Rate	$	39.1	19.5	%	$	25.8	20.1	%	$	8.3	15.6	%

(1) State and local income taxes in the above reconciliation primarily relate to operations in Illinois, Florida, and Wisconsin, which together represent over half of the Company's total state income tax expense for each year. No single state is individually significant to the Company’s tax expense.

Schedule of Cash Income Taxes Paid, Net of Refunds Received

Cash income taxes paid, net of refunds received, for the periods presented consisted entirely of U.S. federal, state, and local income taxes, and no income taxes were paid to foreign jurisdictions.


($ in millions)	Years Ended December 31,
	2025		2024		2023
Federal	$	33.1	$	20.9	$	13.0
State and Local	1.6		1.2		1.0

Total	$	34.7	$	22.1	$	14.0


($ in millions)	Years Ended December 31,
	2025		2024		2023
Cash	$	26.2	$	33.1	$	29.0
Restricted cash	1.3		5.0		0.7
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	$	27.5	$	38.1	$	29.7

Cash paid during the year for:
Interest	$	32.2	$	33.5	$	30.1
Income taxes	34.7		22.1		14.0