Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of company's deferred income tax assets and liabilities

	December 31,
	2012			2011
				(As Adjusted)
	(In thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	21,878		$	20,576
Unearned premiums		12,043			10,446
Accrued expenses and other		3,870			3,555
Accrued policyholder dividends		916			698
Capital loss carryforward		—			568
Impaired securities		94			94
Accrued insurance-related assessments		3,564			3,472
AMT tax credit		64			—
Total deferred tax assets		42,429			39,409
Deferred income tax liabilities:
Deferred policy acquisition costs		(7,499	)		(6,905	)
Deferred charges		(666	)		(852	)
Unrealized gain on securities available-for-sale		(1,604	)		(1,192	)
Property and equipment and other		(356	)		(52	)
Salvage and subrogation		(442	)		(360	)
Guaranty fund related items		(2,341	)		—
Total deferred income tax liabilities		(12,908	)		(9,361	)
Net deferred income taxes	$	29,521		$	30,048

Components of consolidated income tax expense (benefit)

	Year Ended December 31,
	2012		2011			2010
			(As Adjusted)			(As Adjusted)
	(In thousands)
Current:
Federal	$	7,372	$	4,529		$	11,617
State		302		172			254
		7,674		4,701			11,871
Deferred:
Federal		116		(1,525	)		(2,169	)
Total	$	7,790	$	3,176		$	9,702

Income tax expense from operations from the amount computed by applying the U.S. federal income tax statutory rate of 35% to income before income taxes

	Year Ended December 31,
	2012			2011			2010
				(As Adjusted)			(As Adjusted)
	(In thousands)
Income tax computed at federal statutory tax rate	$	13,000		$	9,575		$	15,478
Tax-exempt interest, net		(5,333	)		(5,105	)		(5,133	)
State income tax		302			172			254
Dividends received deduction		(79	)		(29	)		(6	)
Valuation allowance		—			(1,442	)		(869	)
Other		(100	)		5			(22	)
	$	7,790		$	3,176		$	9,702