Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Company's Deferred Income Tax Assets and Liabilities

The Company’s deferred income tax assets and liabilities are as follows:


	December 31,
	2013		2012
	(In thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	17,493	$	21,878
Unearned premiums		14,008		12,043
Accrued expenses and other		4,336		3,870
Accrued policyholder dividends		684		916
Impaired securities		874		94
Accrued insurance-related assessments		3,989		3,564
AMT tax credit		—		64

Total deferred tax assets		41,384		42,429
Deferred income tax liabilities:
Deferred policy acquisition costs and deferred charges		(7,937)		(8,165)
Unrealized gain (loss) on securities available-for-sale		2,313		(1,604)
Property and equipment and other		(266)		(356)
Salvage and subrogation		(288)		(442)
Guaranty fund related items		(1,561)		(2,341)

Total deferred income tax liabilities		(7,739)		(12,908)

Net deferred income taxes	$	33,645	$	29,521

Components of Consolidated Income Tax Expense (Benefit)

The components of consolidated income tax expense (benefit) are as follows:


	Year Ended December 31,
	2013		2012		2011
	(In thousands)
Current:
Federal	$	15,270	$	7,372	$	4,529
State		504		302		172

		15,774		7,674		4,701
Deferred:
Federal		(207)		116		(1,525)

Total	$	15,567	$	7,790	$	3,176

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

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


	Year Ended December 31,
	2013		2012		2011
	(In thousands)
Income tax computed at federal statutory tax rate	$	20,721	$	13,000	$	9,575
Tax-exempt interest, net		(5,458)		(5,333)		(5,105)
State income tax		504		302		172
Dividends received deduction		(113)		(79)		(29)
Valuation allowance		—		—		(1,442)
Other		(87)		(100)		5

	$	15,567	$	7,790	$	3,176