Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Company's Deferred Income Tax Assets and Liabilities

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


	December 31,
	2015			2014
	(in thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	15,415		$	17,952
Unearned premiums		14,839			14,788
Accrued expenses and other		3,904			4,306
State income tax		488			591
Accrued policyholder dividends		719			438
Impaired securities		238			80
Capital loss carryforward		715			—
Accrued insurance-related assessments		4,953			4,804

Total deferred tax assets		41,271			42,959
Deferred income tax liabilities:
Deferred policy acquisition costs		(9,012	)		(8,815	)
Unrealized gain (loss) on securities available-for-sale		(1,393	)		(1,513	)
Property and equipment and other		(696	)		(331	)
Salvage and subrogation		(265	)		(289	)
Guaranty fund related items		—			(780	)

Total deferred income tax liabilities		(11,366	)		(11,728	)

Net deferred income taxes	$	29,905		$	31,231

Components of Consolidated Income Tax Expense (Benefit)

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


	Year Ended December 31,
	2015		2014			2013
	(in thousands)
Current:
Federal	$	28,047	$	20,811		$	15,270
State		1,012		684			504

		29,059		21,495			15,774
Deferred:
Federal		1,343		(821	)		(207	)
State		103		(591	)		—

		1,446		(1,412	)		(207	)

Total	$	30,505	$	20,083		$	15,567

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,
	2015			2014			2013
	(in thousands)
Income tax computed at federal statutory tax rate	$	35,338		$	25,812		$	20,721
Tax-exempt interest, net		(5,630	)		(5,620	)		(5,458	)
State income tax		762			(146	)		504
Dividends received deduction		(19	)		(60	)		(113	)
Other		54			97			(87	)

	$	30,505		$	20,083		$	15,567