Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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,
		2014			2013
Income tax (asset) liability
Current	$	(1,195	)	$	(1,998	)
Deferred		261,784			163,213

Summary of deferred tax assets and liabilities

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

	December 31,
		2014		2013
Deferred tax assets
Unearned premium reserve reduction	$	15,721	$	15,555
Compensation accruals		14,765		13,188
Other comprehensive income – net funded status of pension and other postretirement benefit obligations		7,009		6,376
Discounting of unpaid claims and claim expense tax reserves		4,090		4,747
Impaired securities		3,327		1,800
Postretirement benefits other than pensions		870		2,048
Total gross deferred tax assets		45,782		43,714
Deferred tax liabilities
Other comprehensive income – net unrealized gains on fixed maturities and equity securities		185,011		81,497
Deferred policy acquisition costs		70,796		80,159
Life insurance future policy benefit reserve		25,914		21,792
Investment related adjustments		20,064		18,317
Intangible assets		4,262		4,262
Other, net		1,519		900
Total gross deferred tax liabilities		307,566		206,927
Net deferred tax liability	$	261,784	$	163,213

Income Taxes Expenses

The components of income tax expense were as follows:

	Year Ended December 31,
		2014		2013		2012
Current	$	32,295	$	31,610	$	26,331
Deferred		9,575		11,563		18,976
Total income tax expense	$	41,870	$	43,173	$	45,307

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,
		2014			2013			2012
Expected federal tax on income	$	51,140		$	53,923		$	52,210
Add (deduct) tax effects of:
Tax-exempt interest		(6,849	)		(6,829	)		(6,836	)
Dividend received deduction		(3,566	)		(3,382	)		(2,132	)
Other, net		1,145			(539	)		2,065
Income tax expense provided on income	$	41,870		$	43,173		$	45,307

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,
		2014			2013		2012
Balance as of the beginning of the year	$	641		$	-	$	-
Additions based on tax positions related to the current year		259			641		-
Settlements in tax positions for prior years		(244	)		-		-
Balance as of the end of the year	$	656		$	641	$	-