Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]

Components Of Income Tax Expense

The income tax expense (benefit) consisted of the following components:

	Year Ended December 31,
	2019			2018			2017
	(Amounts in thousands)
Federal
Current	$	18,109		$	14,190		$	10,898
Deferred	40,413			(39,244		)	10,934
	$	58,522		$	(25,054	)	$	21,832
State
Current	$	(1,430	)	$	1,982		$	955
Deferred	890			(1,815		)	(579		)
	$	(540	)	$	167		$	376
Total
Current	$	16,679		$	16,172		$	11,853
Deferred	41,303			(41,059		)	10,355
Total	$	57,982		$	(24,887	)	$	22,208

Reconciliation Of Income Taxes

he following table presents a reconciliation of the tax expense (benefit) based on the statutory rate to the Company's actual tax expense (benefit) in the consolidated statements of operations:

	Year Ended December 31,
	2019			2018			2017
	(Amounts in thousands)
Computed tax expense (benefit) at 21% for 2019 and 2018 and 35% for 2017	$	79,394		$	(6,429	)	$	58,480
Tax-exempt interest income	(12,909		)	(13,507		)	(26,038		)
Dividends received deduction	(1,276		)	(1,082		)	(2,296		)
State tax (benefit) expense	(869		)	439			158
Nondeductible expenses	526			390			348
Change in federal tax contingency reserve	(2,588		)	—			—
Cumulative impact from change in federal tax rate	—			—			(11,449		)
(Reversal in 2018) reduction of AMT credit carryforward due to sequestration in 2017	—			(4,088		)	4,088
Other, net	(4,296		)	(610		)	(1,083		)
Income tax expense (benefit)	$	57,982		$	(24,887	)	$	22,208

Deferred Tax Assets And Liabilities

The following table presents the significant components of the Company’s net deferred tax assets and liabilities:

	December 31,
	2019			2018
	(Amounts in thousands)
Deferred tax assets:
20% of net unearned premiums	$	58,448		$	52,644
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes	12,769			9,245
Write-down of impaired investments	314			356
Expense accruals	8,099			7,019
Tax asset on net unrealized loss on securities carried at fair value	—			1,055
Other deferred tax assets	3,348			3,257
Total gross deferred tax assets	82,978			73,576
Deferred tax liabilities:
Deferred policy acquisition costs	(48,964		)	(45,178		)
Tax liability on net unrealized gain on securities carried at fair value	(41,273		)	—
Tax depreciation in excess of book depreciation	(8,105		)	(4,594		)
Undistributed earnings of insurance subsidiaries	(2,855		)	(3,017		)
Tax amortization in excess of book amortization	(3,264		)	(2,729		)
Other deferred tax liabilities	(6,481		)	(4,719		)
Total gross deferred tax liabilities	(110,942		)	(60,237		)
Net deferred tax (liabilities) assets	$	(27,964	)	$	13,339

Summary Of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits:

	December 31,
	2019			2018
	(Amounts in thousands)
Balance at January 1	$	10,615		$	9,674
Additions (reductions) based on tax positions related to:
Current year	—			662
Prior years	(4,564		)	279
Balance at December 31	$	6,051		$	10,615