Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016 were:



DOLLARS IN MILLIONS	2017			2016
Deferred Income Tax Assets:
Insurance Reserves	$	55.7		$	83.4
Unearned Premium Reserves	26.7			42.1
Tax Capitalization of Policy Acquisition Costs	41.9			70.7
Payroll and Employee Benefit Accruals	37.2			60.5
Net Operating Loss Carryforwards	31.8			52.2
Other	3.7			13.2
Total Deferred Income Tax Assets	197.0			322.1
Deferred Income Tax Liabilities:
Investments	90.6			113.0
Deferred Policy Acquisition Costs	76.8			116.2
Life VIF and P&C Customer Relationships	6.9			13.5
Goodwill and Other Intangible Assets Acquired	22.3			37.1
Depreciable Assets	12.1			12.5
Other	3.1			4.0
Total Deferred Income Tax Liabilities	211.8			296.3
Net Deferred Income Tax Assets (Liabilities)	$	(14.8	)	$	25.8

Summary of Operating Loss Carryforwards

The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2017 is presented below by year of expiration.



DOLLARS IN MILLIONS	NOL Carry-forwards		Deferred Tax Asset
Expiring in:
2020	$	7.8	$	1.6
2021 through 2025	30.5		6.5
2026 through 2030	29.8		6.2
2031 through 2037	83.3		17.5
Total All Years	$	151.4	$	31.8

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2017, 2016 and 2015 is presented below.



DOLLARS IN MILLIONS	2017			2016			2015
Liabilities for Unrecognized Tax Benefits at Beginning of Year	$	5.1		$	3.8		$	7.2
Additions for Tax Positions of Current Year	3.1			1.5			0.2
Additions for Tax Positions of Prior Years	—			—			—
Reduction for Expiration of Federal Statute of Limitations	(0.1		)	(0.2		)	(3.6		)
Liabilities for Unrecognized Tax Benefits at End of Year	$	8.1		$	5.1		$	3.8

Schedule of Components of Income Tax Expense (Benefit)

The components of Income Tax Expense from Continuing Operations for the years ended December 31, 2017, 2016 and 2015 were:



DOLLARS IN MILLIONS	2017			2016			2015
Current Income Tax Benefit (Expense)	$	(23.1	)	$	8.2		$	(25.7	)
Deferred Income Tax Benefit (Expense)	(15.1		)	2.3			2.2
(Increase) Decrease Unrecognized Tax Benefits	(3.0		)	(1.3		)	3.4
Income Tax Benefit (Expense)	$	(41.2	)	$	9.2		$	(20.1	)

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, 2017, 2016 and 2015 is presented below.



DOLLARS IN MILLIONS	2017					2016					2015
DOLLARS IN MILLIONS	Amount			Rate		Amount			Rate		Amount			Rate
Statutory Federal Income Tax Expense	$	(56.4	)	35.0	%	$	(1.2	)	35.0	%	$	(35.1	)	35.0	%
Tax-exempt Income and Dividends Received Deduction	9.8			(6.0	)	9.8			(279.5	)	9.8			(9.7	)
Unrecognized Tax Benefit (Expense)	—			—		—			—		2.1			(2.1	)
Indemnification Recoveries	—			—		0.2			(6.5	)	3.7			(3.6	)
State Income Taxes	0.1			(0.1	)	(0.6		)	16.9		(0.6		)	0.5
Long-term Equity Based Compensation	0.4			(0.2	)	—			—		—			—
Tax Reform	7.4			(4.6	)	—			—		—			—
Other, Net	(2.5		)	1.5		1.0			(28.9	)	—			—
Effective Income Tax Benefit (Expense) from Continuing Operations	$	(41.2	)	25.6	%	$	9.2		(263.0	)%	$	(20.1	)	20.1	%

Comprehensive Income Tax Benefit and Expenses

Comprehensive Income Tax Benefit (Expense) included in the Consolidated Financial Statements for the years ended December 31, 2017, 2016 and 2015 was:



DOLLARS IN MILLIONS	2017			2016			2015
Income Tax Benefit (Expense):
Continuing Operations	$	(41.2	)	$	9.2		$	(20.1	)
Discontinued Operations	(0.5		)	(2.2		)	(3.1		)
Unrealized Depreciation (Appreciation) on Securities	(25.9		)	0.9			62.8
Foreign Currency Translation Adjustments on Investments	(0.6		)	0.1			0.5
Tax Effects from Postretirement Benefit Plans	(0.6		)	(7.3		)	(9.1		)
Tax Effects from Cash Flow Hedge	2.4			(0.6		)	—
Tax Effects from Long-term Equity-based Compensation included in Paid-in Capital	—			(1.1		)	(1.0		)
Comprehensive Income Tax Benefit (Expense)	$	(66.4	)	$	(1.0	)	$	30.0