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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company conducts goodwill impairment testing at the reporting unit level at least annually or more frequently if events occur or circumstances change that indicate that the carrying amount may not be recoverable. See Note 1 for further description of impairment testing. At October 1, 2024 and October 1, 2023, the Company performed a qualitative goodwill impairment test. Based on the results of the tests, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. At October 1, 2022, the Company performed a quantitative goodwill impairment test. Based on the results of the test, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount with the exception of lower than anticipated BCG revenues which triggered an impairment of the goodwill associated with the BCG reporting unit within the Retirement operating segment. For the evaluation, the fair value of BCG was measured using a discounted cash flow method. The carrying amount exceeded the fair value, resulting in a $2.0 million goodwill impairment charge. Goodwill impairment charges are reported as Other expense - goodwill and intangible asset impairments in the Consolidated Statements of Operations and Comprehensive Income (Loss). The changes in the carrying amount of goodwill by reporting segment for the year ended December 31, 2024 were as follows:
($ in millions) |  | Property & Casualty |  | Life & Retirement |  | Supplemental & Group Benefits |  | Total
Balance as of January 1, 2022 |  |  |  |  |  |  |  |
Goodwill |  | $ | 9.5 |  |  | $ | 48.0 |  |  | $ | 19.6 |  |  | $ | 77.1 |
Accumulated impairment losses |  | — |  |  | (33.6) |  |  | — |  |  | (33.6) |
Total goodwill, net |  | 9.5 |  |  | 14.4 |  |  | 19.6 |  |  | 43.5 |
Acquisitions |  | — |  |  | — |  |  | 12.8 |  |  | 12.8 |
Impairments |  | — |  |  | (2.0) |  |  | — |  |  | (2.0) |
Balance as of December 31, 2022 |  |  |  |  |  |  |  |
Goodwill |  | 9.5 |  |  | 48.0 |  |  | 32.4 |  |  | 89.9 |
Accumulated impairment losses |  | — |  |  | (35.6) |  |  | — |  |  | (35.6) |
Total goodwill, net |  | 9.5 |  |  | 12.4 |  |  | 32.4 |  |  | 54.3 |
Acquisitions |  | — |  |  | — |  |  | — |  |  | — |
Impairments |  | — |  |  | — |  |  | — |  |  | — |
Balance as of December 31, 2023 |  |  |  |  |  |  |  |
Goodwill |  | 9.5 |  |  | 48.0 |  |  | 32.4 |  |  | 89.9 |
Accumulated impairment losses |  | — |  |  | (35.6) |  |  | — |  |  | (35.6) |
Total goodwill, net |  | 9.5 |  |  | 12.4 |  |  | 32.4 |  |  | 54.3 |
Acquisitions |  | — |  |  | — |  |  | — |  |  | — |
Impairments |  | — |  |  | — |  |  | — |  |  | — |
Balance as of December 31, 2024 |  |  |  |  |  |  |  |
Goodwill |  | 9.5 |  |  | 48.0 |  |  | 32.4 |  |  | 89.9 |
Accumulated impairment losses |  | — |  |  | (35.6) |  |  | — |  |  | (35.6) |
Total goodwill, net |  | $ | 9.5 |  |  | $ | 12.4 |  |  | $ | 32.4 |  |  | $ | 54.3 |
As of December 31, 2024, the outstanding amounts of definite-lived intangible assets subject to amortization are attributable to the acquisitions of BCG, BCGS and NTA during 2019 as well as the acquisition of Madison National during 2022. The acquisitions of BCG, BCGS, NTA and Madison National resulted in initial recognition of definite-lived intangible assets subject to amortization in the amounts of $9.1 million, $5.0 million, $160.4 million and $56.5 million, respectively. As of December 31, 2024 the outstanding amounts of definite-lived intangible assets subject to amortization were as follows:
($ in millions) |  | Weighted Average |  |
|  | Useful Life (in Years) |  |
At inception: |  |  |  |
Value of business acquired |  | 28 |  | $ | 100.1 |
Value of distribution acquired |  | 17 |  | 54.0 |
Value of agency relationships |  | 14 |  | 17.0 |
Value of customer relationships |  | 10 |  | 59.9 |
Total |  | 20 |  | 231.0 |
Accumulated amortization and impairments: |  |  |  |
Value of business acquired |  |  |  | (40.6) |
Value of distribution acquired |  |  |  | (20.5) |
Value of agency relationships |  |  |  | (11.2) |
Value of customer relationships |  |  |  | (16.3) |
Total |  |  |  | (88.6) |
Net intangible assets subject to amortization: |  |  |  | $ | 142.4 |
With regards to the definite-lived intangible assets in the table above, the VOBA intangible asset represents the present value of the expected underwriting profit within policies that were in force on the date of acquisition. The VODA 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 and Madison National customers in force at the date of acquisition. 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, |  |
2025 |  | $ | 14.3 |
2026 |  | 14.2 |
2027 |  | 14.1 |
2028 |  | 14.1 |
2029 |  | 14.1 |
Thereafter |  | 71.6 |
Total |  | $ | 142.4 |
The VOBA intangible asset is being amortized by product based on the present value of future premiums to be received. The VODA intangible asset with respect to the acquisition of NTA is being amortized on a straight-line basis. The VODA intangible asset with respect to the acquisition of BCGS was being amortized based on the present value of future profits to be received but will be amortized on a straight-line basis subsequent to the reporting date. 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 December 31, 2024 were as follows:
($ in millions) |  | Trade Names |  | State Licenses |  | Total
Balance as of January 1, 2022 |  | $ | 7.9 |  |  | $ | 2.9 |  |  | $ | 10.8 |
Impairments |  | (0.3) |  |  | — |  |  | (0.3) |
Acquisitions |  | — |  |  | 2.9 |  |  | 2.9 |
Balance as of December 31, 2022 |  | 7.6 |  |  | 5.8 |  |  | 13.4 |
Impairments |  | — |  |  | — |  |  | — |
Acquisitions |  | — |  |  | — |  |  | — |
Balance as of December 31, 2023 |  | 7.6 |  |  | 5.8 |  |  | 13.4 |
Impairments |  | — |  |  | — |  |  | — |
Acquisitions |  | — |  |  | — |  |  | — |
Balance as of December 31, 2024 |  | $ | 7.6 |  |  | $ | 5.8 |  |  | $ | 13.4 |
The trade names intangible asset represents the present value of future savings accruing to NTA, BCG and BCGS 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. The Company conducts intangible asset impairment testing at least annually, or more often if events, changes or circumstances indicate that the carrying amounts may not be recoverable. See Note 1 for further description of impairment testing. At October 1, 2024 and October 1, 2023, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount. At October 1, 2022, the Company performed a qualitative assessment to determine whether it was necessary to perform quantitative intangible asset impairment tests. Based on the assessment of qualitative factors, there were no events or circumstances that led to a determination that it is more likely than not that the fair value of an intangible asset is less than its carrying amount with the exception of lower than anticipated BCG revenues which triggered a requirement to evaluate the intangible assets associated with BCG. For the evaluation, the fair value of BCG's intangible assets were measured using discounted cash flow methods. The carrying amounts for customer relationships and trade names exceeded their fair values resulting in a $2.5 million intangible asset impairment charge for customer relationships and a $0.3 million intangible asset impairment charge for trade names. Intangible asset impairment charges are reported as Other expense - goodwill and intangible asset impairments in the Consolidated Statements of Operations and Comprehensive Income (Loss).

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