Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Summary of Assets Acquired and Liabilities Assumed

($ in millions)
Assets:
Investments	$	542.6
Cash and short-term investments	73.8
Intangible assets (1)	169.8
Other assets	18.3
Liabilities:
Policy reserves	366.8
Policy claims	21.8
Unearned premiums	4.1
Other liabilities	5.5
Total identifiable net assets acquired	406.3
Goodwill (2)	19.3
Purchase price	$	425.6

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⁽¹⁾  Intangible assets consist of the value of business acquired, value of distribution acquired, agency relationships, trade names and state licenses. The intangible assets that are amortizable have estimated lives of 14 to 35 years. See Note 14 for further information.

⁽²⁾ 

The amount of goodwill that is expected to be deductible for federal income tax purposes is $17.9 million.

Business Acquisition, Pro Forma Information

The adjustments to arrive at the unaudited pro forma information below includes, among other things, adjustments for lost investment income on the cash used to fund the acquisition, amortization of an estimated fair value adjustment on NTA's policy reserves, amortization of acquired intangible assets, interest expense on debt incurred to finance the acquisition and exclusion of certain transaction costs attributable to the acquisition as such costs are considered non-recurring.

($ in thousands, except per share data)	Unaudited
	Nine Months Ended September 30,		Year Ended December 31,
	2019		2018
Total revenues	$	1,175,977	$	1,339,896
Total expenses	967,352		1,288,690
Income before income taxes	208,625		51,206
Net income	$	161,463	$	43,373
Net income per share: (1)
Basic	$	3.87	$	1.04
Diluted	$	3.85	$	1.04

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⁽¹⁾  The unaudited pro forma basic and diluted net income per share calculations are based on the Company's historical basic and diluted weighted average number of shares outstanding for the nine months ended September 30, 2019 and the year ended December 31, 2018.