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Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The Company conducts impairment testing for goodwill and intangible assets at least annually, or more often if events, changes or circumstances indicate that the carrying amount may not be recoverable. See Part II - Item 8, Note 1 in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for more information regarding impairment testing.
The carrying amount of goodwill by reporting unit as of September 30, 2022 was as follows:
($ in millions)December 31, 2021ImpairmentAcquisitionSeptember 30, 2022
Property & Casualty$9.5 $— $— $9.5 
Life & Retirement14.4 — — 14.4 
Supplemental & Group Benefits19.6 — 12.8 32.4 
Total
$43.5 $— $12.8 $56.3 

As of September 30, 2022, the outstanding amounts of definite-lived intangible assets subject to amortization are attributable to the acquisitions of Benefit Consultants Group, Inc. (BCG) and NTA Life Enterprises, LLC (NTA) during 2019, as well as the acquisition of Madison National during 2022. The acquisitions of BCG, NTA and Madison National resulted in initial recognition of definite-lived intangible assets subject to amortization in the amounts of $14.1 million, $160.4 million and $56.5 million, respectively. As of September 30, 2022 the outstanding amounts of definite-lived intangible assets subject to amortization were as follows:
($ in millions)Weighted Average
Useful Life (in Years)
At inception:
Value of business acquired
28$100.1 
Value of distribution acquired
1754.0 
Value of agency relationships
1417.0 
Value of customer relationships
1059.9 
Total
20231.0 
Accumulated amortization and impairments:
Value of business acquired
(26.6)
Value of distribution acquired
(13.8)
Value of agency relationships
(7.7)
Value of customer relationships
(4.5)
Total
(52.6)
Net intangible assets subject to amortization:$178.4 
With regards to the definite-lived intangible assets in the table above, the value of business acquired intangible asset represents the present value of the expected underwriting profit within policies that were in force on the date of acquisition. The value of distribution acquired intangible asset represents the present value of future business to be written by the existing agency force. The value of agency relationships intangible asset represents the present value of the commission overrides retained by NTA. The value of customer relationships intangible asset represents the present value of the expected profits from existing BCG customers in force at the date of acquisition as well as the present value of future business to be produced by Madison National's existing independent producing brokers. All of the aforementioned definite-lived intangible assets were valued using the income approach.
Estimated future amortization of the Company's definite-lived intangible assets were as follows:
($ in millions)
Year Ending December 31,
2022 (excluding the nine months ended September 30, 2022)$4.1 
202315.5 
202415.1 
202514.8 
202614.5 
Thereafter
114.4 
Total
$178.4 
The value of business acquired intangible asset is being amortized by product based on the present value of future premiums to be received. The value of distribution acquired intangible asset is being amortized on a straight-line basis. The value of agency relationships intangible asset is being amortized based on the present value of future premiums to be received. The value of customer relationships intangible assets are being amortized based on the present value of future profits to be received for BCG and based on the present value of future premiums for Madison National.
Indefinite-lived intangible assets not subject to amortization as of September 30, 2022 were as follows:
($ in millions)
Trade names$7.9 
State licenses5.9 
Total$13.8 
The trade names intangible asset represents the present value of future savings accruing to NTA and BCG by virtue of not having to pay royalties for the use of the trade names, valued using the relief from royalty method. The state licenses intangible asset represents the regulatory licenses held by NTA and Madison National that were valued using the cost approach.