Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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 (benefit) expense and the amount computed at the indicated statutory rate for the years ended December 31, 2017, 2016 and 2015:



($ millions)	2017					2016					2015
Amount at statutory rate	$	11.7		35.0	%	$	6.7		35.0	%	$	23.5		35.0	%
Tax-exempt interest and dividends received deduction	(5.7		)	(17.1	)	(7.1		)	(37.2	)	(8.7		)	(13.0	)
Other, net	1.7			5.4		(1.4		)	(7.2	)	1.3			1.9
Federal income tax expense (benefit)	7.7			23.3		(1.8)			(9.4	)%	16.1			23.9	%
Impact of TCJA at enactment	36.4			108.7		—			—		—			—
Federal income tax expense (benefit)	$	44.1		132.0	%	$	(1.8	)	(9.4	)%	$	16.1		23.9	%

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, 2017 and 2016:



($ millions)	2017		2016
Deferred tax assets:
Unearned premiums not currently deductible	$	25.5	$	42.6
Losses and loss expenses payable discounting	22.0		19.7
Postretirement and pension benefits	13.6		26.1
Realized loss on other-than-temporary impairment	2.1		5.8
Other liabilities	9.2		16.6
Net operating loss carryforward	34.3		58.9
Tax credit carryforward	3.7		3.3
Other	2.5		7.0
Total deferred tax assets	112.9		180.0
Deferred tax liabilities:
Deferral of policy acquisition costs	24.7		45.4
Net unrealized holding gains on investments	20.3		32.5
Losses and loss expenses payable discounting (transition rule)	10.7		—
Total deferred tax liabilities	55.7		77.9
Net deferred federal income taxes	$	57.2	$	102.1