Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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, 2016 and 2015 were:



DOLLARS IN MILLIONS	2016		2015
Deferred Income Tax Assets:
Insurance Reserves	$	83.4	$	83.0
Unearned Premium Reserves	42.1		41.7
Tax Capitalization of Policy Acquisition Costs	70.7		71.5
Payroll and Employee Benefit Accruals	60.5		72.0
Net Operating Loss Carryforwards	52.2		30.5
Other	13.2		15.7
Total Deferred Income Tax Assets	322.1		314.4
Deferred Income Tax Liabilities:
Investments	113.0		109.8
Deferred Policy Acquisition Costs	116.2		110.7
Life VIF and P&C Customer Relationships	13.5		15.5
Goodwill and Other Intangible Assets Acquired	37.1		37.0
Depreciable Assets	12.5		7.3
Other	4.0		2.2
Total Deferred Income Tax Liabilities	296.3		282.5
Net Deferred Income Tax Assets	$	25.8	$	31.9

Summary of Operating Loss Carryforwards

The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2016 is presented below by year of expiration.



DOLLARS IN MILLIONS	NOL Carry-forwards		Deferred Tax Asset
Expiring in:
2020	$	7.8	$	2.7
2021 through 2025	30.5		10.7
2026 through 2030	29.9		10.5
2031 through 2036	81.0		28.3
Total All Years	$	149.2	$	52.2

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2016, 2015 and 2014 is presented below.



DOLLARS IN MILLIONS	2016			2015			2014
Liabilities for Unrecognized Tax Benefits at Beginning of Year	$	3.8		$	7.2		$	6.8
Additions for Tax Positions of Current Period	1.5			0.2			0.1
Additions for Tax Positions of Prior Years	—			—			0.3
Reduction for Expiration of Federal Statute of Limitations	(0.2		)	(3.6		)	—
Liabilities for Unrecognized Tax Benefits at End of Year	$	5.1		$	3.8		$	7.2

Schedule of Components of Income Tax Expense (Benefit)

The components of Income Tax Expense from Continuing Operations for the years ended December 31, 2016, 2015 and 2014 were:



DOLLARS IN MILLIONS	2016			2015			2014
Current Income Tax Benefit (Expense)	$	8.2		$	(25.7	)	$	(41.7	)
Deferred Income Tax Benefit (Expense)	2.3			2.2			(5.5		)
(Increase) Decrease Unrecognized Tax Benefits	(1.3		)	3.4			(0.4		)
Income Tax Benefit (Expense)	$	9.2		$	(20.1	)	$	(47.6	)

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, 2016, 2015 and 2014 is presented below.



DOLLARS IN MILLIONS	2016					2015					2014
DOLLARS IN MILLIONS	Amount			Rate		Amount			Rate		Amount			Rate
Statutory Federal Income Tax Expense	$	(1.2	)	35.0	%	$	(35.1	)	35.0	%	$	(56.1	)	35.0	%
Tax-exempt Income and Dividends Received Deduction	9.8			(279.5	)	9.8			(9.7	)	9.0			(5.6	)
Unrecognized Tax Benefit (Expense)	—			—		2.1			(2.1	)	(0.3		)	—
Indemnification Recoveries	0.2			(6.5	)	3.7			(3.6	)	—			—
State Income Taxes	(0.6		)	16.9		(0.6		)	0.5		(0.6		)	0.4
Other, Net	1.0			(28.9	)	—			—		0.4			(0.1	)
Effective Income Tax Benefit (Expense) from Continuing Operations	$	9.2		(263.0	)%	$	(20.1	)	20.1	%	$	(47.6	)	29.7	%

Comprehensive Income Tax Benefit and Expenses

Comprehensive Income Tax Benefit (Expense) included in the Consolidated Financial Statements for the years ended December 31, 2016, 2015 and 2014 was:



DOLLARS IN MILLIONS	2016			2015			2014
Income Tax Expense:
Continuing Operations	$	9.2		$	(20.1	)	$	(47.6	)
Discontinued Operations	(2.2		)	(3.1		)	(1.1		)
Unrealized Depreciation (Appreciation) on Securities	0.9			62.8			(82.8		)
Foreign Currency Translation Adjustments on Investments	0.1			0.5			0.4
Tax Effects from Postretirement Benefit Plans	(7.3		)	(9.1		)	34.7
Tax Effects from Cash Flow Hedge	(0.6		)	—			—
Tax Effects from Long-term Equity-based Compensation included in Paid-in Capital	(1.1		)	(1.0		)	(1.0		)
Comprehensive Income Tax Benefit (Expense)	$	(1.0	)	$	30.0		$	(97.4	)