Reporting and Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Premium Receivable, Allowance for Credit Loss

The following table summarizes changes in our allowance for credit loss exposure on our premiums receivable:

(millions)	2022		2021
Balance at January 1	$	280.4	$	356.2
Allowance for credit losses acquired1	0		3.5
Increase in allowance2	471.1		357.2
Write-offs3	(408.2)		(436.5)
Balance at December 31	$	343.3	$	280.4

1 Allowance acquired in the Protective Insurance Corporation and subsidiaries (Protective Insurance) acquisition.

2 Represents the incremental increase in other underwriting expenses.

3 Represents the portion of allowance that is reversed when premiums receivables are written off. Premiums receivable balances are written off once we have exhausted our collection efforts.

Advertising Costs

Total advertising costs, which are expensed as incurred, for the years ended December 31, were:

(millions)	Advertising Costs
2022	$	2,032.5
2021	2,139.5
2020	2,175.7

Property and Equipment

The cost and useful lives for property and equipment at December 31, were:

($ in millions)	2022		2021		Useful Lives
Land	$	123.1	$	154.1	NA
Buildings, improvements, and integrated components	844.1		904.5		7-40 years
Capitalized software	475.4		441.2		3-10 years
Software licenses (internal use)	427.6		393.6		1-6 years
Computer equipment	318.1		261.3		3 years
All other property and equipment	396.8		390.0		3-10 years
Total cost	2,585.1		2,544.7
Accumulated depreciation	(1,551.1)		(1,407.4)
Balance at end of year	$	1,034.0	$	1,137.3
NA = Not applicable; land is not a depreciable asset.

Equity Based Compensation and Related Tax Benefits

The total compensation expense recognized for equity-based compensation for the years ended December 31, was:

(millions)	2022		2021		2020
Pretax expense	$	122.7	$	100.7	$	89.4
Tax benefit1	16.0		14.1		12.1

1 Differs from statutory rate of 21% due to the expected disallowance of certain executive compensation deductions.

Non cash activity

For the years ended December 31, non-cash activity included the following:

(millions)	2022		2021		2020
Common share dividends1	$	58.5	$	58.5	$	2,694.5
Preferred share dividends1	13.4		13.4		13.4
Operating lease liabilities2	36.2		86.7		60.3

1 Declared but unpaid. See Note 14 – Dividends for further discussion.

2 From obtaining right-of-use assets. See Note 13 – Leases for further discussion.

Supplemental Cash Flow Information

For the years ended December 31, we paid the following:

(millions)	2022		2021		2020
Income taxes	$	719.0	$	842.4	$	1,446.3
Interest	228.9		224.0		206.0
Operating lease liabilities	82.5		88.6		86.5

Unrecorded Unconditional Purchase Obligations Disclosure

Aggregate payments on these obligations for the years ended December 31, were as follows:

(millions)	Payments
2023	$	918.6
2024	81.2
2025	33.1
2026	2.5
2027	1.5
Thereafter	0
Total	$	1,036.9