Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Liabilities Table

The components of Liabilities for Income Taxes at December 31, 2014 and 2013 were:



DOLLARS IN MILLIONS	2014		2013
Current Income Tax Liabilities	$	7.8	$	1.5
Deferred Income Tax Liabilities	21.5		—
Unrecognized Tax Benefits	7.2		6.8
Liabilities for Income Taxes	$	36.5	$	8.3

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 Income Tax Assets and Deferred Income Tax Liabilities at December 31, 2014 and 2013 were:



DOLLARS IN MILLIONS	2014			2013
Deferred Income Tax Assets:
Insurance Reserves	$	78.7		$	76.4
Unearned Premium Reserves	35.5			40.2
Tax Capitalization of Policy Acquisition Costs	73.0			73.3
Payroll and Employee Benefit Accruals	74.0			38.8
Net Operating Loss Carryforwards	31.7			53.3
Other	9.8			12.6
Total Deferred Income Tax Assets	302.7			294.6
Deferred Income Tax Liabilities:
Investments	160.1			80.0
Deferred Policy Acquisition Costs	106.1			106.0
Life VIF and P&C Customer Relationships	17.7			20.2
Goodwill and Licenses	28.4			26.8
Depreciable Assets	7.4			26.0
Other	4.5			3.8
Total Deferred Income Tax Liabilities	324.2			262.8
Net Deferred Income Tax Assets (Liabilities)	$	(21.5	)	$	31.8

Summary of Operating Loss Carryforwards

The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets is presented below by year of expiration.



DOLLARS IN MILLIONS	NOL Carry-forwards		Deferred Tax Asset
Expiring in:
2020	$	8.1	$	2.8
2021 through 2025	30.6		10.8
2026 through 2030	29.8		10.4
2031 through 2032	22.0		7.7
Total All Years	$	90.5	$	31.7

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2014, 2013 and 2012 is as follows:



DOLLARS IN MILLIONS	2014		2013		2012
Balance at Beginning of Year	$	6.8	$	6.4	$	6.2
Additions for Tax Positions of Current Period	0.1		0.1		—
Additions for Tax Positions of Prior Years	0.3		0.3		0.2
Balance at End of Year	$	7.2	$	6.8	$	6.4

Schedule of Components of Income Tax Expense (Benefit)

The components of Income Tax Expense from Continuing Operations for the years ended December 31, 2014, 2013 and 2012 were:



DOLLARS IN MILLIONS	2014			2013			2012
Current Income Tax Expense	$	(41.7	)	$	(49.4	)	$	(43.3	)
Deferred Income Tax Benefit (Expense)	(5.5		)	(50.1		)	12.9
Increase Unrecognized Tax Benefits	(0.4		)	(0.4		)	(0.2		)
Income Tax Expense	$	(47.6	)	$	(99.9	)	$	(30.6	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Statutory Federal Income Tax Expense and Rate to the Company’s Effective Income Tax Expense and Rate from Continuing Operations for the years ended December 31, 2014, 2013 and 2012 was:



DOLLARS IN MILLIONS	2014					2013					2012
DOLLARS IN MILLIONS	Amount			Rate		Amount			Rate		Amount			Rate
Statutory Federal Income Tax Expense	$	(56.1	)	35.0	%	$	(110.0	)	35.0	%	$	(42.8	)	35.0	%
Tax-exempt Income and Dividends Received Deduction	9.0			(5.6	)	10.6			(3.4	)	13.9			(11.4	)
State Income Taxes	(0.6		)	0.4		(0.2		)	0.1		(0.8		)	0.7
Other, Net	0.1			(0.1	)	(0.3		)	0.1		(0.9		)	0.7
Effective Income Tax Expense from Continuing Operations	$	(47.6	)	29.7	%	$	(99.9	)	31.8	%	$	(30.6	)	25.0	%

Comprehensive Income Tax Benefit and Expenses

Comprehensive Income Tax Expense included in the Consolidated Financial Statements for the years ended December 31, 2014, 2013 and 2012 was:



DOLLARS IN MILLIONS	2014			2013			2012
Income Tax Expense:
Continuing Operations	$	(47.6	)	$	(99.9	)	$	(30.6	)
Discontinued Operations	(1.1		)	(1.7		)	(7.3		)
Unrealized Depreciation (Appreciation) on Securities	(82.8		)	129.1			(34.4		)
Foreign Currency Translation Adjustments on Investments	0.4			(0.1		)	(0.6		)
Tax Effects from Postretirement Benefit Plans	34.7			(30.4		)	4.6
Tax Effects from Long-term Equity-based Compensation included in Paid-in Capital	(1.0		)	0.2			(0.1		)
Comprehensive Income Tax Expense	$	(97.4	)	$	(2.8	)	$	(68.4	)