Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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

A reconciliation of federal income tax expense computed by applying the federal income tax rate of 21% in 2019 and 2018 and 35% in 2017 to income (loss) before federal income tax is as follows:



Years ended December 31, (In thousands, except for %)	2019			%		2018			%		2017			%
Expected tax expense (benefit)	$	1,186		21.0	%	$	420		21.0	%	$	(1,045	)	35.0	%
Foreign income tax rate differential	(1,562		)	(27.7	)	(8,133		)	(406.3	)	—			—
Tax-exempt interest and dividends-received deduction	(145		)	(2.6	)	(227		)	(11.3	)	(360		)	12.1
Adjustment of prior year taxes	(99		)	(1.8	)	113			5.6		68			(2.3	)
Effect of graduated rates	—			—		—			—		(140		)	4.7
Effect of uncertain tax position	1,148			20.3		2,612			130.5		(355		)	11.9
Nondeductible costs to remediate tax compliance issue	(27		)	(0.5	)	(366		)	(18.3	)	(384		)	12.9
162(m) compensation limitation	480			8.5		53			2.6		—			—
Subpart F income	5,853			103.6		18,403			919.2		—			—
Tax reform re-measurement	—			—		68			3.4		35,718			(1,196.2	)
Goodwill impairment	—			—		—			—		1,621			(54.3	)
Other	281			5.2		121			6.2		18			(0.6	)
Total federal income tax expense	$	7,115		126.0	%	$	13,064		652.6	%	$	35,141		(1,176.8	)%

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

Income tax expense consists of:



Years ended December 31, (In thousands)	2019		2018		2017
Current	$	5,542	(49,569	)	14,454
Deferred	1,573		62,633		20,687
Total income tax expense	$	7,115	13,064		35,141

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

The components of deferred federal income taxes are as follows:



December 31, (In thousands)	2019			2018
Deferred tax assets:
Future policy benefit reserves	$	2,641		2,795
Net operating and capital loss carryforwards	230			191
Investments	702			1,841
Deferred intercompany loss	3,539			5,190
Lease liability	238			—
Other	700			339
Total gross deferred tax assets	8,050			10,356
Deferred tax liabilities:
DAC, COIA and intangible assets	(8,417		)	(8,745	)
Unrealized gains on investments available-for-sale	(7,300		)	(1,968	)
Tax reserves transition liability	(4,483		)	(4,864	)
Right of use lease asset	(238		)	—
Other	(40		)	(488	)
Total gross deferred tax liabilities	(20,478		)	(16,065	)
Net deferred tax liability	$	(12,428	)	(5,709	)

Change in Deferred Tax Liability [Table Text Block]

A summary of the changes in the components of deferred federal and state income taxes is as follows:



December 31, (In thousands)	2019			2018
Deferred federal and state income taxes:
Balance January 1,	$	(5,709	)	50,797
Deferred tax benefit	(1,573		)	(62,633	)
Investments available-for-sale	(5,129		)	6,153
Effects of unrealized gains on DAC, COIA and reserves	(17		)	(26	)
Balance December 31,	$	(12,428	)	(5,709	)

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of unrecognized tax benefits is as follows:



Years ended December 31, (In thousands)	2019		2018		2017
Balance at January 1,	$	44,841	95,831		85,762
Additions based on tax positions related to the current year	—		—		7,384
Additions for tax positions of prior years	1,148		2,268		2,685
Reductions for tax positions of prior years	—		(53,258	)	—
Balance December 31,	$	45,989	44,841		95,831