Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

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, 2019 and 2018 were:

DOLLARS IN MILLIONS	2019		2018
Deferred Income Tax Assets:
Insurance Reserves	$	16.2	$	17.0
Unearned Premium Reserves	64.5		59.1
Tax Capitalization of Policy Acquisition Costs	44.6		44.0
Payroll and Employee Benefit Accruals	35.0		49.6
Net Operating Loss Carryforwards	3.3		5.5
Other	12.5		11.2
Total Deferred Income Tax Assets	176.1		186.4
Deferred Income Tax Liabilities:
Investments	155.6		33.2
Deferred Policy Acquisition Costs	112.9		98.7
Life VIF and P&C Customer Relationships	5.3		6.0
Goodwill and Other Intangible Assets Acquired	39.3		45.2
Depreciable Assets	37.6		27.1
Other	3.6		2.4
Total Deferred Income Tax Liabilities	354.3		212.6
Net Deferred Income Tax Liabilities	$	178.2	$	26.2

Summary of Operating Loss Carryforwards

The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2019 is presented below by year of expiration.

DOLLARS IN MILLIONS	NOL Carry-forwards		Deferred Tax Asset
Expiring in:
2027	11.2		2.4
2028	4.4		0.9
Total All Years	$	15.6	$	3.3

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2019, 2018 and 2017 is presented below.

DOLLARS IN MILLIONS	2019			2018			2017
Liabilities for Unrecognized Tax Benefits at Beginning of Year	$	4.4		$	8.1		$	5.1
Additions for Tax Positions of Current Year	—			0.7			3.1
Reductions for Tax Positions of Prior Years	(4.4		)	(4.4		)	—
Reduction for Expiration of Federal Statute of Limitations	—			—			(0.1		)
Liabilities for Unrecognized Tax Benefits at End of Year	$	—		$	4.4		$	8.1

Schedule of Components of Income Tax Expense (Benefit)

The components of Income Tax Expense from Continuing Operations for the years ended December 31, 2019, 2018 and 2017 were:

DOLLARS IN MILLIONS	2019			2018			2017
Current Income Tax Benefit (Expense)	$	(66.4	)	$	32.2		$	(23.1	)
Deferred Income Tax Expense	(68.5		)	(46.5		)	(15.1		)
(Increase) Decrease Unrecognized Tax Benefits	4.4			3.6			(3.0		)
Income Tax Expense	$	(130.5	)	$	(10.7	)	$	(41.2	)

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, 2019, 2018 and 2017 is presented below.

DOLLARS IN MILLIONS	2019					2018					2017
	Amount			Rate		Amount			Rate		Amount			Rate
Statutory Federal Income Tax Expense	$	(138.9	)	21.0	%	$	(41.8	)	21.0	%	$	(56.4	)	35.0	%
Tax-exempt Income and Dividends Received Deduction	4.3			(0.7	)	4.8			(2.4	)	9.8			(6.0	)
Stock-Based Compensation	4.4			(0.7	)	1.4			(0.7	)	0.4			(0.2	)
Nondeductible Executive Compensation	(2.5		)	0.4		(1.4		)	0.7		—			—
Tax Reform	—			—		26.4			(13.3	)	7.4			(4.6	)
Other, Net	2.2			(0.3	)	(0.1		)	0.1		(2.4		)	1.4
Effective Income Tax Benefit (Expense) from Continuing Operations	$	(130.5	)	19.7	%	$	(10.7	)	5.4	%	$	(41.2	)	25.6	%

Comprehensive Income Tax Benefit and Expenses

Comprehensive Income Tax (Expense) Benefit included in the Consolidated Financial Statements for the years ended December 31, 2019, 2018 and 2017 was:

DOLLARS IN MILLIONS	2019			2018			2017
Income Tax Benefit (Expense):
Continuing Operations	$	(130.5	)	$	(10.7	)	$	(41.2	)
Discontinued Operations	—			(0.6		)	(0.5		)
Unrealized Depreciation (Appreciation) on Securities	(85.2		)	49.6			(25.9		)
Foreign Currency Translation Adjustments on Investments	—			(0.1		)	(0.6		)
Tax Effects from Postretirement Benefit Plans	1.7			1.5			(0.6		)
Tax Effects from Cash Flow Hedge	(0.1		)	(0.3		)	2.4
Comprehensive Income Tax (Expense) Benefit	$	(214.1	)	$	39.4		$	(66.4	)