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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2017
Components of Deferred Income Tax Assets and Liabilities

The components of the deferred income tax assets and liabilities as of December 31, 2017 and 2016 were as follows:

 

     December 31, 2017     December 31, 2016  
($ in thousands)             

Deferred tax assets

    

Policyholder reserves

   $ 1,351,638     $ 2,139,431  

Deferred acquisition costs

     50,739       65,002  

Deferred financing costs

     2,154       6,311  

Investments

     —         29,721  

Other assets

     3,800       5,137  
  

 

 

   

 

 

 

Total deferred tax assets

   $ 1,408,331     $ 2,245,602  
  

 

 

   

 

 

 

Deferred tax liabilities

    

Value of business acquired

   $ (28,356   $ (65,345

Amounts recoverable from reinsurers

     (1,347,620     (2,172,500

Intangibles

     (1,092     (1,820

Investments

     (54,605     —    

Other liabilities

     (1,243     (2,251
  

 

 

   

 

 

 

Total deferred tax liabilities

   $ (1,432,916   $ (2,241,916
  

 

 

   

 

 

 

Net deferred tax asset (liability)

   $ (24,585   $ 3,686  
  

 

 

   

 

 

 
Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31, 2017, 2016 and 2015 were as follows:

 

     2017      2016      2015  
($ in thousands)                     

Expected federal income tax expense (benefit)

   $ (2,124    $ 16,135      $ 45,062  

Dividends received deduction

     (1,960      (1,960      (2,443

Tax reform

     (11,461      —          —    

Other

     (268      472        3,475  
  

 

 

    

 

 

    

 

 

 

Total income tax expense (benefit)

   $ (15,813    $ 14,647      $ 46,094