Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The following table discloses significant components of income taxes for each year presented:


	Year Ended December 31,
	2020		2019		2018
Income tax expense (benefit) from continuing operations:
Current income tax expense (benefit)	$	129,647	$	134,948	$	134,626
Deferred income tax expense (benefit)	35,264		35,449		27,535
	164,911		170,397		162,161
Shareholders’ equity:
Other comprehensive income (loss)	314,845		405,472		(293,678)
	$	479,756	$	575,869	$	(131,517)

Summary of Effective Income Tax Rate

The effective income tax rate differed from the expected U.S. federal statutory rate of 21% as shown below:


	Year Ended December 31,
	2020		%	2019		%	2018		%
Expected federal income tax expense (benefit)	$	188,304	21.0	$	195,569	21.0	$	181,371	21.0

Increase (reduction) in income taxes resulting from:
Tax reform adjustment	—		—	—		—	(798)		(0.1)
Low income housing investments	(11,913)		(1.3)	(11,605)		(1.2)	(12,240)		(1.4)
Share-based awards	(5,013)		(0.6)	(11,780)		(1.3)	(6,450)		(0.7)
Tax-exempt investment income	(5,830)		(0.6)	(3,192)		(0.3)	(1,230)		(0.1)
Other	(637)		(0.1)	1,405		0.1	1,508		0.1
Income tax expense (benefit)	$	164,911	18.4	$	170,397	18.3	$	162,161	18.8

Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:


	December 31,
	2020		2019
Deferred tax assets:
Fixed maturity investments	$	4,279	$	6,161
Carryover of tax losses	5,534		7,827
Total gross deferred tax assets	9,813		13,988
Deferred tax liabilities:
Unrealized gains	808,071		493,174
Employee and agent compensation	88,012		81,174
Deferred acquisition costs	688,034		658,457
Future policy benefits, unearned and advance premiums, and policy claims	257,640		242,124
Other liabilities	7,209		26,271
Total gross deferred tax liabilities	1,848,966		1,501,200
Net deferred tax liability	$	1,839,153	$	1,487,212