Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consists of:


(In thousands)	Current Expense		Deferred Expense (Benefit)		Total
December 31, 2020
Domestic	$	162,305	$	17	$	162,322
Foreign	23,375		(13,880)		9,495
Total expense (benefit)	$	185,680	$	(13,863)	$	171,817

December 31, 2019
Domestic	$	124,231	$	27,616	$	151,847
Foreign	9,030		8,058		17,088
Total expense	$	133,261	$	35,674	$	168,935

December 31, 2018
Domestic	$	188,712	$	(63,134)	$	125,578
Foreign	13,963		23,487		37,450
Total expense (benefit)	$	202,675	$	(39,647)	$	163,028

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 21% for 2020, 2019 and 2018 to pre-tax income are as follows:


(In thousands)	2020		2019		2018
Computed “expected” tax expense	$	148,008	$	179,113	$	170,540
Tax-exempt investment income	(12,770)		(14,666)		(18,833)
Change in valuation allowance	46,238		(1,945)		18,576
Impact of foreign tax rates	6,753		7,700		7,683
State and local taxes	2,561		4,842		3,901
Impact of change in U.S. tax rate	—		—		(10,950)
Other, net	(18,973)		(6,109)		(7,889)
Total expense	$	171,817	$	168,935	$	163,028

Schedule of Deferred Tax Assets and Liabilities


(In thousands)	2020		2019		2018
Computed “expected” tax expense	$	148,008	$	179,113	$	170,540
Tax-exempt investment income	(12,770)		(14,666)		(18,833)
Change in valuation allowance	46,238		(1,945)		18,576
Impact of foreign tax rates	6,753		7,700		7,683
State and local taxes	2,561		4,842		3,901
Impact of change in U.S. tax rate	—		—		(10,950)
Other, net	(18,973)		(6,109)		(7,889)
Total expense	$	171,817	$	168,935	$	163,028

At December 31, 2020 and 2019, the tax effects of differences that give rise to significant portions of the deferred tax asset and deferred tax liability are as follows:


(In thousands)	2020		2019
Deferred tax asset:
Loss reserve discounting	$	141,877	$	136,100
Unearned premiums	134,971		120,246
Net operating losses	64,494		37,147
Other-than-temporary impairments	5,973		8,049
Employee compensation plans	60,551		60,552
Other	85,327		63,633
Gross deferred tax asset	493,193		425,727
Less valuation allowance	(79,488)		(33,250)
Deferred tax asset	413,705		392,477
Deferred tax liability:
Amortization of intangibles	12,761		12,832
Loss reserve discounting - transition rule	24,747		29,697
Deferred policy acquisition costs	113,084		103,947
Unrealized investment gains	100,241		93,330
Property, furniture and equipment	48,235		47,082
Investment funds	64,944		73,083
Other	62,809		50,212
Deferred tax liability	426,821		410,183
Net deferred tax liability	$	13,116	$	17,706