v3.25.4
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS
Goodwill balances by business segment at December 31, 2025 and 2024 were:
DOLLARS IN MILLIONS20252024
Specialty Property & Casualty Insurance$1,043.0 $1,043.0 
Life Insurance207.7 207.7 
Total$1,250.7 $1,250.7 
The Company tests goodwill for recoverability at the reporting unit level on an annual basis, or whenever events or circumstances indicate the fair value of a reporting unit may have declined below its carrying value. The Company performed a quantitative goodwill impairment assessment for all reporting units with goodwill as of October 1, 2025, principally using projections of discounted cash flows and market multiples comparisons to estimate the fair values of the reporting units. For each unit tested, the estimated fair value exceeded the carrying value of the reporting unit, and the Company concluded that the associated goodwill was recoverable for each reporting unit tested.
During the second quarter of 2023, the Company identified impairment indicators impacting the fair value of the Preferred Property & Casualty Insurance business in connection with ongoing evaluation of strategic alternatives for the Preferred Insurance business. As a result, the business’s fair value was determined using a combination of available market information, market comparisons and a discounted cash flow valuation method based on the present value of future earnings. The fair value calculated in the second quarter of 2023 was lower than the carrying value of the business, resulting in a pre-tax impairment charge of $49.6 million and an after-tax impairment charge of $45.5 million. A substantial portion of the goodwill that was impaired was not tax deductible. The goodwill impairment charge is reported separately in the Consolidated Statements of Income (Loss) for the year ended December 31, 2023, with a corresponding reduction to goodwill in the Consolidated Balance Sheet as of December 31, 2023.
The gross carrying amount and accumulated amortization of definite and indefinite life intangible assets at December 31, 2025 and 2024 were:
 20252024
(Dollars in Millions)Gross Carrying AmountAccumulated AmortizationNet AmountGross
Carrying Amount		Accumulated AmortizationNet Amount
Definite Life Intangible Assets:
Value of Business Acquired$237.5 $227.0 $10.5 $237.5 $225.4 $12.1 
Customer Relationships43.8 42.7 1.1 43.8 42.3 1.5 
Agent Relationships81.7 48.8 32.9 81.6 43.9 37.7 
Trade Names— — — — — — 
Internal-Use Software1
330.1 148.1 182.0 395.1 180.3 214.8 
Total Definite Life Intangible Assets693.1 466.6 226.5 758.0 491.9 266.1 
Indefinite Life Intangible Assets:
Trade Names5.2 — 5.2 5.2 — 5.2 
Insurance Licenses44.1 — 44.1 44.2 — 44.2 
Total Indefinite Life Intangible Assets49.3 — 49.3 49.4 — 49.4 
Total Intangible Assets$742.4 $466.6 $275.8 $807.4 $491.9 $315.5 
1 During the year ended December 31, 2025, the Company recognized a $21.7 million impairment of Internal-Use Software assets included in Non-Core Operations.
NOTE 14. GOODWILL AND INTANGIBLE ASSETS (Continued)
The Company records intangible assets acquired in business combinations and certain costs incurred developing and customizing internal-use software within Other Assets on the Consolidated Balance Sheets. Definite life intangible assets are amortized over the estimated profit emergence period or estimated useful life of the asset. Indefinite life intangible assets are not amortized, but rather tested annually for impairment. In 2025, 2024 and 2023, the Company recognized the following amortization expense on definite life intangible assets:
DOLLARS IN MILLIONS202520242023
Specialty Property & Casualty Insurance$18.8 $16.6 $17.9 
Life Insurance3.7 6.0 3.4 
Total Segment Amortization Expense
22.5 22.6 21.3 
Corporate and Other
17.4 21.8 26.1 
Non-Core Operations1
23.9 1.9 1.2 
Total Amortization Expense
$63.8 $46.3 $48.6 
During the year ended December 31, 2025 the Company recognized a $21.7 million impairment of Internal-Use Software assets included in Non-Core Operations.
The amount of amortization expense expected to be recorded in the next five years for definite life intangible assets is as follows:
DOLLARS IN MILLIONS20262027202820292030
Definite Life Intangible Assets:
Value of Business Acquired$1.5 $1.5 $1.4 $1.3 $1.1 
Customer Relationships0.5 0.3 0.1 0.1 — 
Agent Relationships4.9 4.9 4.9 4.9 4.1 
Internal-Use Software29.4 25.8 23.4 18.9 14.3 
Total$36.3 $32.5 $29.8 $25.2 $19.5