Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Current and Deferred Income Tax Expense (Benefit)

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

	Year Ended December 31,
In thousands	2013		2012			2011
Current income tax expense (benefit):
Federal and foreign	$	28,084	$	39,242		$	573
State and local		446		146			340
Subtotal		28,530		39,388			913
Deferred income tax expense (benefit):
Federal and foreign		277		(11,414	)		6,224
State and local		—		—			—
Subtotal		277		(11,414	)		6,224
Total income tax expense (benefit)	$	28,807	$	27,974		$	7,137

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 were as follows:

	Year Ended December 31,
In thousands	2013					2012					2011
Computed expected tax expense	$	32,299		35.0	%	$	32,109		35.0	%	$	11,457		35.0	%
Tax-exempt interest		(3,839	)	-4.2	%		(4,443	)	-4.8	%		(4,437	)	-13.6	%
Dividends received deduction		(897	)	-1.0	%		(799	)	-0.9	%		(1,065	)	-3.3	%
Proration		710		0.8	%		786		0.9	%		825		2.5	%
Current state and local income taxes, net of federal income tax		290		0.3	%		95		0.1	%		221		0.7	%
Other		244		0.3	%		226		0.2	%		136		0.5	%
Actual tax expense and rate	$	28,807		31.2	%	$	27,974		30.5	%	$	7,137		21.8	%

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:

	December 31,
In thousands	2013			2012
Deferred tax assets:
Loss reserve discount	$	27,822		$	29,687
Unearned premiums		25,706			22,860
Compensation related		6,782			5,285
State and local net deferred tax assets		555			499
Other		3,889			4,245
Total gross deferred tax assets		64,754			62,576
Less: Valuation allowance		(555	)		(499	)
Total deferred tax assets	$	64,199		$	62,077
Deferred tax liabilities:
Deferred acquisition costs	$	(19,258	)	$	(16,903	)
Net unrealized gains on securities		(12,635	)		(36,200	)
Other		(4,119	)		(5,758	)
Total deferred tax liabilities	$	(36,012	)	$	(58,861	)
Net deferred income tax asset (liability)	$	28,187		$	3,216