INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Components of Income Tax Expense

The components of income tax expense are as follows (dollars in millions):


	Three months ended				Six months ended
	June 30,				June 30,
	2026		2025		2026		2025
Current tax expense	$	13.7	$	2.7	$	14.1	$	3.5
Deferred tax expense	20.1		23.5		30.4		29.0




Total income tax expense	$	33.8	$	26.2	$	44.5	$	32.5

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. statutory corporate tax rate to the estimated annual effective tax rate, reflected in the consolidated statement of operations is as follows:


	Six months ended
	June 30,
	2026		2025
U.S. statutory corporate rate	21.0	%	21.0	%

Non-taxable income and nondeductible benefits, net	(1.4)		(0.8)

State taxes	1.8		2.1
Effective tax rate	21.4	%	22.3	%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company's income tax assets and liabilities are summarized below (dollars in millions):


	June 30, 2026		December 31, 2025
Deferred tax assets:
Net federal operating loss carryforwards	$	188.7	$	205.0
Net state operating loss carryforwards	37.1		38.0

Capital loss carryforwards	12.9		11.3

Insurance liabilities	364.0		362.3
Indirect costs allocable to self-constructed real estate assets	0.9		0.9
Accumulated other comprehensive income (loss)	330.8		310.3
Other	16.2		19.2
Gross deferred tax assets	950.6		947.0
Deferred tax liabilities:
Investments	(49.3)		(47.9)
Present value of future profits, deferred acquisition costs, and sales inducements	(200.1)		(187.4)

Gross deferred tax liabilities	(249.4)		(235.3)


Net deferred tax assets	701.2		711.7
Current income taxes prepaid (accrued)	8.5		1.6
Income tax assets, net	$	709.7	$	713.3