Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Net deferred tax assets and liabilities

Net deferred tax (liabilities) assets, included on the Consolidated Balance Sheet at December 31, 2020 and 2019 as a component of Other liabilities and Other assets, respectively, are as follows:

Deferred tax assets and liabilities
Table	12.1
(In thousands)		2020		2019
Total deferred tax assets		$	38,443	$	63,533
Total deferred tax liabilities		(98,485)		(57,791)
Net deferred tax (liability) asset		$	(60,042)	$	5,742

Components of the net deferred tax asset (liability)

Table 12.2 includes the components of the net deferred tax (liability) asset as of December 31, 2020 and 2019.

Deferred tax components
Table	12.2
(In thousands)		2020		2019
Unearned premium reserves		$	23,163	$	30,487
Benefit plans		(13,977)		(10,790)
Loss reserves		3,542		2,175
Unrealized appreciation in investments		(72,341)		(36,822)
Mortgage investments		—		8,359
Deferred compensation		6,776		9,270
AMT credit carryforward		—		8,303
Other, net		(7,205)		(5,240)
Net deferred tax (liability) asset		$	(60,042)	$	5,742

Components of the provision for (benefit from) income taxes

Table 12.3 summarizes the components of the provision for (benefit from) income taxes:

Provision for (benefit from) income taxes
Table	12.3
(In thousands)		2020		2019		2018
Current Federal		$	85,574	$	162,911	$	(16,272)
Deferred Federal		28,244		11,860		185,598
Other		(648)		(557)		4,727
Provision for income taxes		$	113,170	$	174,214	$	174,053

Reconciliation of federal statutory income tax rate

Table 12.4 reconciles the federal statutory income tax rate to our effective tax provision rate.

Effective tax rate reconciliation
Table	12.4
		2020		2019		2018
Federal statutory income tax rate		21.0	%	21.0	%	21.0	%
Additional income tax benefit related to IRS litigation		—	%	—	%	(0.3)	%
Tax exempt municipal bond interest		(0.9)	%	(0.6)	%	(0.7)	%
Other, net		0.1	%	0.1	%	0.6	%
Effective tax rate		20.2	%	20.5	%	20.6	%