Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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

Components Of Income Tax Expense

The income tax expense consisted of the following components:

	Year Ended December 31,
	2021		2020		2019
	(Amounts in thousands)
Federal
Current	$	37,391	$	69,554	$	18,109
Deferred	11,349		12,340		40,413
	$	48,740	$	81,894	$	58,522
State
Current	$	1,542	$	1,172	$	(1,430)
Deferred	1,088		828		890
	$	2,630	$	2,000	$	(540)
Total
Current	$	38,933	$	70,726	$	16,679
Deferred	12,437		13,168		41,303
Total	$	51,370	$	83,894	$	57,982

Reconciliation Of Income Taxes

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

	Year Ended December 31,
	2021		2020		2019
	(Amounts in thousands)
Computed tax expense at 21%	$	62,854	$	96,285	$	79,394
Tax-exempt interest income	(11,577)		(12,270)		(12,909)
Dividends received deduction	(1,311)		(1,335)		(1,276)
State tax expense (benefit)	2,134		1,678		(869)
Nondeductible expenses	843		983		526
Change in federal tax contingency reserve	—		—		(2,588)
Other, net	(1,573)		(1,447)		(4,296)
Income tax expense	$	51,370	$	83,894	$	57,982

Deferred Tax Assets And Liabilities

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

	December 31,
	2021		2020
	(Amounts in thousands)
Deferred tax assets:
20% of net unearned premiums	$	65,978	$	61,067
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes	18,163		15,090
Write-down of impaired investments	168		293
Expense accruals	12,997		14,432
Other deferred tax assets	5,886		6,401
Total gross deferred tax assets	103,192		97,283
Deferred tax liabilities:
Deferred policy acquisition costs	(54,234)		(51,869)
Tax liability on net unrealized gain on securities carried at fair value	(70,808)		(56,531)
Tax depreciation in excess of book depreciation	(10,129)		(12,632)
Undistributed earnings of insurance subsidiaries	(3,557)		(3,382)
Tax amortization in excess of book amortization	(6,064)		(4,666)
Other deferred tax liabilities	(11,969)		(9,335)
Total gross deferred tax liabilities	(156,761)		(138,415)
Net deferred tax liabilities	$	(53,569)	$	(41,132)

Summary Of Unrecognized Tax Benefits

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

	December 31,
	2021		2020
	(Amounts in thousands)
Balance at January 1	$	4,634	$	6,051
Additions (reductions) based on tax positions related to:
Current year	—		—
Prior years	(254)		(1,417)
Balance at December 31	$	4,380	$	4,634