Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Reconciliation Between Actual Federal Income Tax Expense (Benefit) and Amount Computed at Indicated Statutory Rate

The following table sets forth the reconciliation between actual federal income tax expense (benefit) and the amount computed at the indicated statutory rate for the years ended December 31, 2015, 2014 and 2013:



($ millions)	2015					2014					2013
Amount at statutory rate	$	23.5		35.0	%	$	9.4		35.0	%	$	21.5		35.0	%
Tax-exempt interest and dividends received deduction	(8.7		)	(13.0	)	(8.5		)	(31.5	)	(9.4		)	(15.3	)
Other, net	1.3			1.9		1.1			4.1		0.2			0.4
Valuation allowance	—			—		(82.6		)	(308.1	)	(11.8		)	(19.3	)
Federal income tax expense (benefit) and effective rate	$	16.1		23.9	%	$	(80.6	)	(300.5	)%	$	0.5		0.8	%

Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities

The following table sets forth the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014:



($ millions)	2015		2014
Deferred tax assets:
Unearned premiums not currently deductible	$	42.5	$	42.2
Losses and loss expenses payable discounting	19.3		21.0
Postretirement and pension benefits	36.4		41.1
Realized loss on other-than-temporary impairment	12.3		8.4
Other liabilities	21.3		22.2
Net operating loss carryforward	41.8		58.0
Tax credit carryforward	4.8		1.9
Other	4.9		4.7
Total deferred tax assets	183.3		199.5
Deferred tax liabilities:
Deferral of policy acquisition costs	45.2		44.3
Net unrealized holding gains on investments	35.6		57.8
Total deferred tax liabilities	80.8		102.1
Net deferred federal income taxes	$	102.5	$	97.4