Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Current and Deferred Income Tax Expense (Benefit)

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

	Years Ended December 31,
amounts in thousands	2015		2014		2013
Current income tax expense (benefit):
Federal and foreign	$	27,937	$	27,290	$	23,703
State and local		1,476		1,036		446
Subtotal	$	29,413	$	28,326	$	24,149
Deferred income tax expense (benefit):
Federal and foreign		7,004		16,881		4,658
State and local		—		—		—
Subtotal	$	7,004	$	16,881	$	4,658
Total income tax expense (benefit)	$	36,417	$	45,207	$	28,807

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:

	Years Ended December 31,
amounts in thousands	2015					2014					2013
Computed expected tax expense	$	41,116		35.0	%	$	49,187		35.0	%	$	32,299		35.0	%
Tax-exempt interest		(4,987	)	-4.2	%		(4,771	)	-3.4	%		(3,839	)	-4.2	%
Dividends received deduction		(2,086	)	-1.8	%		(1,257	)	-0.9	%		(897	)	-1.0	%
Proration of DRD and Tax-exempt interest		1,061		0.9	%		904		0.6	%		710		0.8	%
Current state and local income taxes, net of federal income tax deduction		959		0.8	%		674		0.5	%		290		0.3	%
Other		354		0.3	%		470		0.4	%		244		0.3	%
Actual tax expense and rate	$	36,417		31.0	%	$	45,207		32.2	%	$	28,807		31.2	%

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

	December 31,
amounts in thousands	2015			2014
Deferred tax assets:
Loss reserve discount	$	25,353		$	24,820
Unearned premiums		31,486			29,080
Compensation related		11,175			10,586
State and local net deferred tax assets		721			777
Other		4,315			3,732
Total gross deferred tax assets		73,050			68,995
Less: Valuation allowance		(721	)		(777	)
Total deferred tax assets	$	72,329		$	68,218
Deferred tax liabilities:
Net unrealized gains/ losses on securities		(13,053	)		(26,730	)
Deferred acquisition costs		(24,037	)		(22,120	)
Lloyd's year of account deferral		(24,466	)		(13,578	)
Net unrealized foreign exchange		(4,164	)		(4,470	)
Other		(2,709	)		(2,787	)
Total deferred tax liabilities	$	(68,429	)	$	(69,685	)
Net deferred income tax asset (liability)	$	3,900		$	(1,467	)