Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Summary 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 (2022 recast for the adoption of LDTI):


($ in millions)	December 31,
	2023		2022
Income tax (asset) liability
Current	$	(25.9)	$	(18.8)
Deferred	33.4		8.8

Summary of Deferred Tax Assets and Liabilities

The "temporary differences" that gave rise to the deferred tax balances were as follows (2022 recast for the adoption of LDTI):


($ in millions)	December 31,
	2023		2022
Deferred tax assets
Other comprehensive income - net unrealized losses on securities	$	82.1	$	105.8
Unearned premium reserve reduction	13.3		10.1
Compensation accruals	9.3		8.4
Impaired securities	2.0		2.0
Other comprehensive income - net funded status of benefit plans	2.0		2.3
Discounting of unpaid claims and claim expense tax reserves	2.7		2.8
Capital loss carryforward	0.8		—
Net operating loss carryforward	9.3		3.6
Intangibles	1.4		—
Postretirement benefits other than pensions	0.2		0.2
Total gross deferred tax assets	123.1		135.2
Deferred tax liabilities

Deferred policy acquisition costs	45.9		48.5
Life insurance future policy benefit reserve	46.4		42.4
Life insurance future policy benefit reserve (transitional rule)	4.3		6.4
Discounting of unpaid claims and claim expense tax reserves (transitional rule)	0.3		0.5
Investment related adjustments	44.8		29.9
Other comprehensive income - net reserve remeasurements	5.8		15.7
Other, net	9.0		0.6
Total gross deferred tax liabilities	156.5		144.0
Net deferred tax liability	$	33.4	$	8.8

Summary of Income Taxes Expenses

The components of the provision for income tax expense (benefit) were as follows (2022 and 2021 recast for the adoption of LDTI):


($ in millions)	Years Ended December 31,
	2023		2022		2021
Current	$	6.5	$	(0.7)	$	27.7
Deferred	1.8		(2.6)		12.0
Total income tax expense (benefit)	$	8.3	$	(3.3)	$	39.7

Summary 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 2023, 2022 and 2021 to income before income taxes as follows (2022 and 2021 recast for the adoption of LDTI):


($ in millions)	Years Ended December 31,
	2023		2022		2021
Expected federal tax on income	$	11.2	$	3.5	$	44.1
Add (deduct) tax effects of:
Tax-exempt interest	(2.7)		(3.3)		(3.9)
Dividend received deduction	(1.3)		(3.2)		(2.2)


Employee share-based compensation	0.1		(0.5)		(1.3)
Contingent consideration	—		(0.3)		—
Compensation deduction limitation	0.8		0.7		1.5
Research and development reserve	(0.2)		(0.4)		(0.2)
Prior year adjustments	0.3		0.1		0.1
Other, net	0.1		0.1		1.6
Income tax expense (benefit) provided on income	$	8.3	$	(3.3)	$	39.7