Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of income tax assets and liabilities

The income tax assets and liabilities included in Other assets and Other liabilities, respectively, in the Consolidated Balance Sheets were as follows:

($ in millions)	December 31,
	2021		2020
Income tax (asset) liability
Current	$	(9.5)	$	(12.6)
Deferred	190.5		206.7

Summary of deferred tax assets and liabilities

The "temporary differences" that gave rise to the deferred tax balances were as follows:

($ in millions)	December 31,
	2021		2020
Deferred tax assets
Unearned premium reserve reduction	$	11.7	$	11.5
Compensation accruals	9.6		9.5
Impaired securities	2.3		2.1
Other comprehensive income - net funded status of benefit plans	2.7		3.0
Discounting of unpaid claims and claim expense tax reserves	2.5		2.5
Intangibles	0.1		—
Postretirement benefits other than pensions	0.3		0.3
Total gross deferred tax assets	29.2		28.9
Deferred tax liabilities
Other comprehensive income - net unrealized gains on securities	101.1		124.7
Deferred policy acquisition costs	37.3		36.3
Life insurance future policy benefit reserve	30.7		26.7
Life insurance future policy benefit reserve (transitional rule)	8.5		10.7
Discounting of unpaid claims and claim expense tax reserves (transitional rule)	0.6		0.8
Investment related adjustments	37.3		34.2
Intangibles	—		0.2
Other, net	4.2		2.0
Total gross deferred tax liabilities	219.7		235.6
Net deferred tax liability	$	190.5	$	206.7

Income taxes expenses

The components of the provision for income tax expense were as follows:

($ in millions)	Years Ended December 31,
	2021		2020		2019
Current	$	27.7	$	16.9	$	31.5
Deferred	4.4		9.4		20.5
Total income tax expense	$	32.1	$	26.3	$	52.0

Income taxes expenses reconciliation

Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 21% for 2021, 2020 and 2019 to income before income taxes as follows:

($ in millions)	Years Ended December 31,
	2021		2020		2019
Expected federal tax on income	$	36.7	$	33.5	$	49.6
Add (deduct) tax effects of:
Tax-exempt interest	(3.9)		(4.2)		(4.2)
Dividend received deduction	(2.2)		(1.5)		(1.4)
Goodwill impairment	—		0.2		5.9
CARES Act net operating loss carryback	—		(2.8)		—
Employee share-based compensation	(1.3)		(0.5)		0.3
Compensation deduction limitation	1.5		0.7		0.7
Prior year adjustments	0.1		(0.2)		(0.7)
Other, net	1.2		1.1		1.8
Income tax expense provided on income	$	32.1	$	26.3	$	52.0

Unrecognized tax benefits, excluding interest and penalties

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:

($ in millions)	Years Ended December 31,
	2021		2020		2019
Balance as of the beginning of the year	$	2.3	$	2.0	$	1.8
Increases related to prior year tax positions	—		0.2		0.1
Decreases related to prior year tax positions	(0.1)		—		—
Increases related to current year tax positions	—		0.1		0.1
Settlements	—		—		—
Lapse of statute	(0.5)		—		—
Balance as of the end of the year	$	1.7	$	2.3	$	2.0