Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2025, 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.

The changes in the carrying amount of goodwill by reporting segment for the year ended December 31, 2025 were as follows:


($ in millions)	Property & Casualty		Life & Retirement		Supplemental & Group Benefits		Total
Balance as of January 1, 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, 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
Acquisitions	—		—		—		—
Impairments	—		—		—		—
Balance as of December 31, 2025
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, 2025, 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 MNL during 2022. The acquisitions of BCG, BCGS, NTA and MNL 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, 2025 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		(45.7)
Value of distribution acquired		(23.3)
Value of agency relationships		(12.4)
Value of customer relationships		(21.5)
Total		(102.9)
Net intangible assets subject to amortization:		$	128.1

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 MNL 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,
2026	$	14.2
2027	14.1
2028	14.1
2029	13.9
2030	14.0
Thereafter	57.8
Total	$	128.1

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 is being 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 MNL.

Indefinite-lived intangible assets (not subject to amortization) as of December 31, 2025 were as follows:


($ in millions)	Trade Names		State Licenses		Total

Balance as of January 1, 2023	$	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
Impairments	—		—		—
Acquisitions	—		—		—
Balance as of December 31, 2025	$	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 MNL 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, 2025, 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.

HORACE MANN EDUCATORS CORP /DE/ 10-K