Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consists of:


(In thousands)	Current Expense		Deferred (Benefit) Expense		Total
December 31, 2023
Domestic	$	352,891	$	(43,456)	$	309,435
Foreign	44,372		16,750		61,122
Total expense (benefit)	$	397,263	$	(26,706)	$	370,557

December 31, 2022
Domestic	$	295,849	$	(27,544)	$	268,305
Foreign	42,890		23,532		66,422
Total expense (benefit)	$	338,739	$	(4,012)	$	334,727

December 31, 2021
Domestic	$	239,090	$	2,752	$	241,842
Foreign	—		10,048		10,048
Total expense	$	239,090	$	12,800	$	251,890

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 2023, 2022 and 2021 to pre-tax income are as follows:


(In thousands)	2023		2022		2021
Computed “expected” tax expense	$	368,425	$	361,133	$	269,410
Tax-exempt investment income	(8,361)		(10,815)		(11,380)
Change in valuation allowance	(10,883)		(28,064)		2,974
Impact of foreign tax rates	5,461		(453)		(2,368)
State and local taxes	12,271		8,976		4,230

Other, net	3,644		3,950		(10,976)
Total expense	$	370,557	$	334,727	$	251,890

Schedule of Deferred Tax Assets and Liabilities


(In thousands)	2023		2022		2021
Computed “expected” tax expense	$	368,425	$	361,133	$	269,410
Tax-exempt investment income	(8,361)		(10,815)		(11,380)
Change in valuation allowance	(10,883)		(28,064)		2,974
Impact of foreign tax rates	5,461		(453)		(2,368)
State and local taxes	12,271		8,976		4,230

Other, net	3,644		3,950		(10,976)
Total expense	$	370,557	$	334,727	$	251,890

At December 31, 2023 and 2022, 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)	2023		2022
Deferred tax asset:
Loss reserve discounting	$	230,956	$	192,181
Unearned premiums	200,938		180,326
Unrealized investment losses	126,693		228,456
Net operating losses & foreign tax credits	59,154		58,182
Other-than-temporary impairments	12,691		5,935
Employee compensation plans	68,062		63,313
Other	78,025		72,536
Gross deferred tax asset	776,519		800,929
Less valuation allowance	(36,283)		(47,166)
Deferred tax asset	740,236		753,763
Deferred tax liability:
Amortization of intangibles	15,205		13,973
Loss reserve discounting - transition rule	9,894		14,843
Deferred policy acquisition costs	176,281		157,055

Property, furniture and equipment	43,501		45,887
Investment funds	161,867		125,525
Other	66,525		67,479
Deferred tax liability	473,273		424,762
Net deferred tax asset	$	266,963	$	329,001