Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense consists of:



	Nine Months Ended
	September 30,
	2018			2017
	(In thousands)
Current	$	(45,736	)	3,047
Deferred	67,041			(2,975	)
Total income tax expense	$	21,305		72

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate is as follows:



	Nine Months Ended September 30,
	2018					2017
	Amount			%		Amount			%
	(In thousands, except for %)
Expected tax expense (benefit)	$	846		21.0	%	$	2,152		35.0	%
Tax-exempt interest and dividends-received deduction	(126		)	(3.1	)%	(336		)	(5.5	)%
Effect of graduated rates	—			—	%	(35		)	(0.6	)%
Effect of uncertain tax position	2,688			66.7	%	(1,011		)	(16.4	)%
Nondeductible costs to remediate tax compliance issue	(735		)	(18.2	)%	(997		)	(16.2	)%
CICA Ltd. Subpart F income	18,657			462.9	%	—			—	%
Other	(25		)	(0.6	)%	299			4.9	%
Total income tax expense	$	21,305		528.7	%	$	72		1.2	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred federal income taxes are as follows:



	September 30, 2018			December 31, 2017
	(In thousands)
Deferred tax assets:
Future policy benefit reserves	$	20,307		78,372
Net operating and capital loss carryforwards	249			485
Accrued expenses	68			65
Investments	8,941			6,002
Other	347			276
Total gross deferred tax assets	$	29,912		85,200
Deferred tax liabilities:
Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets	$	(33,859	)	(25,518	)
Unrealized gains on investments available-for-sale	(2,366		)	(8,297	)
Accrued policyholder dividends	(2		)	(441	)
Tax reserves transition liability	(3,883		)	—
Other	(176		)	(147	)
Total gross deferred tax liabilities	(40,286		)	(34,403	)
Net deferred tax asset (liability)	$	(10,374	)	50,797