Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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	2016			2015		2014
Current income tax expense (benefit):
Federal and foreign	$	39,900		$	27,937	$	27,290
State and local		638			1,476		1,036
Subtotal	$	40,538		$	29,413	$	28,326
Deferred income tax expense (benefit):
Federal and foreign	$	(5,755	)	$	7,004	$	16,881
State and local		—			—		—
Subtotal	$	(5,755	)	$	7,004	$	16,881
Total income tax expense (benefit)	$	34,783		$	36,417	$	45,207

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	2016					2015					2014
Computed expected tax expense	$	41,128		35.0	%	$	41,116		35.0	%	$	49,187		35.0	%
Tax-exempt interest		(4,559	)	-3.9	%		(4,987	)	-4.2	%		(4,771	)	-3.4	%
Dividends received deduction		(3,812	)	-3.2	%		(2,086	)	-1.8	%		(1,257	)	-0.9	%
Proration of DRD and Tax-exempt interest		1,256		1.1	%		1,061		0.9	%		904		0.6	%
Current state and local income taxes, net of federal income tax deduction		415		0.4	%		959		0.8	%		674		0.5	%
Other		355		0.2	%		354		0.3	%		470		0.4	%
Actual tax expense and rate	$	34,783		29.6	%	$	36,417		31.0	%	$	45,207		32.2	%

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	2016			2015
Deferred tax assets:
Loss reserve discount	$	25,420		$	25,353
Unearned premiums		33,886			31,486
Compensation related		15,288			11,175
State and local net deferred tax assets		699			721
Net currency translation adjustments		5,363			346
Other		3,618			3,969
Total gross deferred tax assets		84,274			73,050
Less: Valuation allowance		(699	)		(721	)
Total deferred tax assets	$	83,575		$	72,329
Deferred tax liabilities:
Net unrealized gains/losses on securities	$	(10,142	)	$	(13,053	)
Deferred acquisition costs		(29,401	)		(24,037	)
Lloyd's year of account deferral		(15,471	)		(24,466	)
Net unrealized foreign exchange		(3,575	)		(4,164	)
Other		(4,048	)		(2,709	)
Total deferred tax liabilities	$	(62,637	)	$	(68,429	)
Net deferred income tax asset (liability)	$	20,938		$	3,900