Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components of Current and Deferred Income Tax Expense (Benefit)

The components of current and deferred income tax expense (benefit) are as follows:

		September 30,		September 30,		September 30,
	Year Ended December 31,
In thousands	2011		2010		2009
Current income tax expense:
Federal and foreign	$	573	$	11,965	$	25,833
State and local		340		97		142
Subtotal		913		12,062		25,975
Deferred income tax expense (benefit):
Federal and foreign		6,224		17,189		(2,285	)
State and local		—		—		—
Subtotal		6,224		17,189		(2,285	)
Total income tax expense	$	7,137	$	29,251	$	23,690

Reconciliation of Total Income Taxes Applicable to Pre-Tax Operating Income and Amounts Computed by Applying Federal Statutory Income Tax Rate to Pre-Tax Operating Income

A reconciliation of total income taxes applicable to pre-tax operating income and the amounts computed by applying the federal statutory income tax rate to the pre-tax operating income was as follows:

		September 30,		September 30,			September 30,		September 30,			September 30,		September 30,
	Year Ended December 31,
In thousands	2011					2010					2009
Computed expected tax expense	$	11,457		35.0	%	$	34,590		35.0	%	$	30,397		35.0	%
Tax-exempt interest		(4,437	)	-13.6	%		(5,992	)	-6.1	%		(8,295	)	-9.6	%
Dividends received deduction		(1,065	)	-3.3	%		(718	)	-0.7	%		(598	)	-0.7	%
Proration		825		2.5	%		1,006		1.0	%		1,334		1.5	%
Current state and local income taxes, net of federal income tax		221		0.7	%		63		0.1	%		93		0.1	%
Other		136		0.4	%		302		0.3	%		759		0.9	%
Actual tax expense and rate	$	7,137		21.8	%	$	29,251		29.6	%	$	23,690		27.3	%

Tax Effects of Temporary Differences That Give Rise to Federal, Foreign, State and Local Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to federal, foreign, state and local deferred tax assets and deferred tax liabilities were as follows:

		September 30,			September 30,
	December 31,
In thousands	2011			2010
Deferred tax assets:
Loss reserve discount	$	31,687		$	30,190
Unearned premiums		19,253			14,358
Compensation related		2,695			5,149
State and local net deferred tax assets		242			2,185
Other		664			3,872
Total gross deferred tax assets		54,541			55,754
Less: Valuation allowance		(242	)		(2,185	)
Total deferred tax assets		54,299			53,569
Deferred tax liabilities:
Deferred acquisition costs		(16,939	)		(11,645	)
Net unrealized gains on securities		(32,782	)		(17,638	)
Other		(10,869	)		(9,145	)
Total deferred tax liabilities		(60,590	)		(38,428	)
Net deferred income tax asset (liability)	$	(6,291	)	$	15,141