Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Summary of income tax assets and liabilities

The income tax assets and liabilities included in Other Assets and Other Liabilities, respectively, in the Consolidated Balance Sheets were as follows:

	December 31,
		2013		2012
Income tax (asset) liability
Current	$	(1,998)	$	4,575
Deferred		163,213		286,726

Summary of deferred tax assets and liabilities

The “temporary differences” that gave rise to the deferred tax balances were as follows:

	December 31,
		2013		2012
Deferred tax assets
Unearned premium reserve reduction	$	15,555	$	14,952
Compensation accruals		13,188		13,592
Other comprehensive income – net funded status of pension and other     postretirement benefit obligations		6,376		8,352
Discounting of unpaid claims and claim expenses tax reserves		4,747		4,825
Postretirement benefits other than pensions		2,048		2,333
Impaired securities		1,800		1,268
Total gross deferred tax assets		43,714		45,322
Deferred tax liabilities
Other comprehensive income – net unrealized gains on fixed maturities and equity     securities		81,497		228,159
Deferred policy acquisition costs		80,159		62,411
Life insurance future policy benefit reserve		21,792		18,620
Investment related adjustments		18,317		15,375
Intangible assets		4,262		4,262
Other, net		900		3,221
Total gross deferred tax liabilities		206,927		332,048
Net deferred tax liability	$	163,213	$	286,726

Income Taxes Expenses

The components of income tax expense were as follows:

	Year Ended December 31,
	2013		2012		2011
Current	$	31,610	$	26,331	$	18,211
Deferred		11,563		18,976		6,201
Total income tax expense	$	43,173	$	45,307	$	24,412

Income Taxes Expenses Reconciliation

Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 35% to income before income taxes as follows:

	Year Ended December 31,
	2013		2012		2011
Expected federal tax on income	$	53,923	$	52,210	$	33,221
Add (deduct) tax effects of:
Tax-exempt interest		(6,829)		(6,836)		(7,072)
Dividend received deduction		(3,382)		(2,132)		(2,010)
Other, net		(539)		2,065		273
Income tax expense provided on income	$	43,173	$	45,307	$	24,412

Unrecognized tax benefits, excluding interest and penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:

	Year Ended December 31,
	2013		2012		2011
Balance as of the beginning of the year	$	-	$	-	$	38
Additions based on tax positions related to the current year		641		-		-
Settlements in tax positions for prior years		-		-		(38)
Balance as of the end of the year	$	641	$	-	$	-

Summary of Interest and penalties

Interest and penalties were as follows:

	Year Ended December 31,
	2013		2012		2011
Interest and penalties expense (benefit), net of releases of previous     provisions, recognized in the Consolidated Statements of Operations:
Gross	$	-	$	468	$	(279)
Net of tax		-		304		(181)

	December 31,
	2013		2012
Interest and penalties (asset) liability included in Other Assets or Other     Liabilities in the Consolidated Balance Sheets	$	1	$	307