Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022 were:


DOLLARS IN MILLIONS	2023		2022
Deferred Income Tax Assets:

Unearned Premium Reserves	$	54.0	$	70.8
Tax Capitalization of Policy Acquisition Costs	46.3		45.9
Payroll and Employee Benefit Accruals	34.8		32.8
Investments	103.4		152.2
Net Operating Loss and Credit Carryforwards	114.6		49.7
Other	32.2		22.6
Subtotal	385.3		374.0
Valuation Allowance	(27.4)		—
Total Deferred Income Tax Assets	357.9		374.0
Deferred Income Tax Liabilities:
Insurance Reserves	12.7		24.9
Deferred Policy Acquisition Costs	124.3		133.3
Life VIF and P&C Customer Relationships	3.2		3.7
Goodwill and Other Intangible Assets Acquired	32.6		36.9
Depreciable Assets	19.3		35.7
Other	6.0		10.5
Total Deferred Income Tax Liabilities	198.1		245.0

Net Deferred Income Tax Assets	$	159.8	$	129.0

Summary of Operating Loss Carryforwards

The expiration of federal net operating loss (“NOL”) and tax credit carryforwards and their related deferred income tax assets at December 31, 2023 is presented below by year of expiration.


DOLLARS IN MILLIONS	NOL Carry-forwards		Deferred Tax Asset
Expiring in:
2027	$	0.8	$	0.2
2028	4.4		0.9
2040	1.4		1.4
2041	4.5		4.5
2042	6.0		6.0
2043	140.4		29.5
No Expiration	343.3		72.1
Total All Years	$	500.8	$	114.6

Schedule of Components of Income Tax Expense (Benefit)

The components of Income Tax Benefit from Operations for the years ended December 31, 2023, 2022 and 2021 were:


DOLLARS IN MILLIONS	2023		2022		2021
Current Income Tax Benefit (Expense)	$	4.0	$	(6.2)	$	122.7
Deferred Income Tax Benefit	70.8		90.6		2.9

Income Tax Benefit	$	74.8	$	84.4	$	125.6

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Statutory Federal Income Tax Benefit and Rate to the Company’s Effective Income Tax Benefit and Rate from Operations for the years ended December 31, 2023, 2022 and 2021 is presented below.


DOLLARS IN MILLIONS	2023				2022				2021
	Amount		Rate		Amount		Rate		Amount		Rate
Statutory Federal Income Tax Benefit	$	72.8	21.0	%	$	77.9	21.0	%	$	52.3	21.0	%
Tax-exempt Income and Dividends Received Deduction	4.8		1.4		5.3		1.3		4.6		1.9




Untaxed Earnings on Company-Owned Life Insurance	6.1		1.8		8.0		2.1		5.4		2.2
Tax credits	3.1		0.9		6.5		1.7		66.1		27.0
Stock-Based Compensation	(0.3)		(0.1)		(1.3)		(0.3)		0.3		0.1
Nondeductible Executive Compensation	(1.8)		(0.5)		(1.5)		(0.4)		(2.7)		(1.1)
Goodwill impairment	(6.3)		(1.8)		—		—		—		—
Expense on Transactions	—		—		(11.5)		(3.0)		—		—
Effect of foreign operations	27.4		7.9		—		—		—		—
Change in valuation allowance	(27.4)		(7.9)		—		—		—		—
Other, Net	(3.6)		(1.1)		1.0		0.3		(0.4)		(0.2)
Effective Income Tax Benefit	$	74.8	21.6	%	$	84.4	22.7	%	$	125.6	50.9	%

Comprehensive Income Tax Benefit and Expenses

Comprehensive Income Tax Benefit included in the Consolidated Financial Statements for the years ended December 31, 2023, 2022 and 2021 was:


DOLLARS IN MILLIONS	2023		2022		2021
Income Tax Benefit (Expense):
Operations	$	74.8	$	84.4	$	125.6

Unrealized (Appreciation) Depreciation on Securities	(50.3)		325.5		60.7

Tax Effects from Postretirement Benefit Plans	(12.4)		(4.0)		1.8
Tax Effects on changes in Discount Rate for Life Reserves	21.2		(289.9)		(47.9)
Tax Effects from Cash Flow Hedge	—		(1.2)		(0.1)

Comprehensive Income Tax Benefit	$	33.3	$	114.8	$	140.1