XML 32 R17.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | 6. INCOME TAXES Provisions for income taxes have been calculated in accordance with ASC 740. Income from continuing operations before income taxes and a summary of the components of income tax expense in the Consolidated Statements of Income are shown below:
YEARS ENDED DECEMBER 31 |  | 2025 |  |  | 2024 |  |  | 2023 |
(in millions) |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  | $ | 843.8 |  |  | $ | 537.8 |  |  | $ | 41.1 |
Income tax expense (benefit): |  |  |  |  |  |  |  |  |
Current |  | $ | 169.3 |  |  | $ | 131.1 |  |  | $ | 32.6 |
Deferred |  |  | 13.8 |  |  |  | (18.6 | ) |  |  | (25.0 | )
Total income tax expense |  | $ | 183.1 |  |  | $ | 112.5 |  |  | $ | 7.6 |
Income taxes paid were as follows:
YEAR ENDED DECEMBER 31 |  | 2025 |
(in millions) |  |  |
Federal |  | $ | 162.8 |
State |  |  | 6.2 |
Total |  | $ | 169.0 |
The income tax expense attributable to the consolidated results of continuing operations is different from the amount determined by multiplying income from continuing operations before income taxes by the U.S. statutory federal income tax rate of 21%. The sources of the difference and the tax effects of each were as follows:
YEAR ENDED DECEMBER 31 |  | 2025 |
(in millions) |  | Amount |  | Percentage |
Income tax expense at U.S. federal statutory tax rate |  | $ | 177.2 |  |  | 21.0 | %
Adjustments for state income tax, nontaxable, nondeductible and other items, net of federal tax benefits as applicable (a) |  |  | 5.9 |  |  | 0.7 |
Income tax expense |  | $ | 183.1 |  |  | 21.7 | %
(a) In addition to federal income taxes, the Company primarily pays non-income state taxes as a percentage of premiums written which are accounted for as policy acquisition costs. Included in the table above are state income taxes, excess compensation, stock-based compensation windfall benefits and other items, none of which were individually significant.
YEARS ENDED DECEMBER 31 |  | 2024 | 2023 |
(in millions) |  |  |  |  |  |
Income tax expense at U.S. federal statutory tax rate |  | $ | 112.9 |  |  | $ | 8.7 |
Nondeductible expenses |  |  | 4.8 |  |  |  | 3.8 |
Stock-based compensation windfall benefit |  |  | (1.9 | ) |  |  | (1.1 | )
Tax difference related to investment disposals and maturities |  |  | (1.2 | ) |  |  | (1.3 | )
Change in uncertain tax positions |  |  | (1.0 | ) |  |  | (0.9 | )
Current year federal tax credits |  |  | (0.9 | ) |  |  | (0.7 | )
Dividend received deduction |  |  | (0.3 | ) |  |  | (0.5 | )
Other, net |  |  | 0.1 |  |  |  | (0.4 | )
Income tax expense |  | $ | 112.5 |  |  | $ | 7.6 |
Effective tax rate |  |  | 20.9 | % |  |  | 18.5 | %
The following are the components of the Company’s deferred tax assets and liabilities, excluding those associated with its discontinued operations.
DECEMBER 31 |  | 2025 |  |  | 2024 |
(in millions) |  |  |  |  |  |
Deferred tax assets: |  |  |  |  |  |
Loss, LAE and unearned premium reserves, net |  | $ | 226.1 |  |  | $ | 211.0 |
Employee benefit plans |  |  | 11.1 |  |  |  | 9.4 |
Investments, net |  |  | 1.3 |  |  |  | 79.8 |
Other |  |  | 11.6 |  |  |  | 14.9 |
Total deferred tax assets |  |  | 250.1 |  |  |  | 315.1 |
Deferred tax liabilities: |  |  |  |  |  |
Deferred acquisition costs |  |  | 147.6 |  |  |  | 139.2 |
Software capitalization |  |  | 19.2 |  |  |  | 1.7 |
Total deferred tax liabilities |  |  | 166.8 |  |  |  | 140.9 |
Net deferred tax asset |  | $ | 83.3 |  |  | $ | 174.2 |
Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. The Company believes it is more likely than not that the deferred tax assets will be realized; therefore there was no valuation allowance required at December 31, 2025 or 2024. The liability for, and changes in, uncertain tax positions were not material as of and for the periods ended December 31, 2025, 2024 and 2023. Tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility were also not material at December 31, 2025 and 2024. Because of the impact of deferred tax accounting, other than interest and penalties, a change in the timing of deductions would not impact the annual effective tax rate. There were no tax positions at December 31, 2023 for which the ultimate deductibility was highly certain, but for which there was uncertainty about the timing of such deductibility. The Company recognizes interest and penalties related to unrecognized tax benefits in federal income tax expense. For each of the years ended December 31, 2025, 2024 and 2023, the Company has released and/or recognized de minimis amounts of net interest and has not recognized any penalties associated with unrecognized tax benefits. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions, as well as foreign jurisdictions. The Company and its subsidiaries are subject to U.S. federal and state income tax examinations and foreign examinations for years after 2020. On July 4, 2025, the One Big Beautiful Bill Act of 2025 was enacted within the U.S. which, among other things, changes certain provisions in the U.S. Tax Code. These changes primarily impact the timing of the Company’s tax deductions and did not have a material impact on its financial position or results of operations.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration