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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Components of Deferred Income Tax Assets and Liabilities

The components of the deferred income tax assets and liabilities as of December 31, 2018 and 2017 were as follows:

 

     December 31, 2018     December 31, 2017  
($ in thousands)             

Deferred tax assets

    

Policyholder reserves

   $ 1,319,161     $ 1,351,638  

Deferred acquisition costs

     64,394       50,739  

Deferred financing costs

     —         2,154  

Investments

     61,318       —    

Other assets

     7,611       3,800  
  

 

 

   

 

 

 

Total deferred tax assets

   $ 1,452,484     $ 1,408,331  

Valuation allowance

     (65,654     —    

Deferred tax assets, after valuation allowance

   $ 1,386,830     $ 1,408,331  
  

 

 

   

 

 

 

Deferred tax liabilities

    

Value of business acquired

   $ (32,397   $ (28,356

Amounts recoverable from reinsurers

     (1,383,677     (1,347,620

Intangibles

     (1,092     (1,092

Investments

     (533     (54,605

Other liabilities

     (731     (1,243
  

 

 

   

 

 

 

Total deferred tax liabilities

   $ (1,418,430   $ (1,432,916
  

 

 

   

 

 

 

Net deferred tax asset (liability)

   $ (31,600   $ (24,585
  

 

 

   

 

 

 

 

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, 2018, 2017 and 2016 were as follows:

 

     2018      2017      2016  
($ in thousands)                     

Expected federal income tax expense (benefit)

   $ (15,662    $ (2,124    $ 16,135  

Dividends received deduction

     (890      (1,960      (1,960

Tax reform

     —          (11,461      —    

Tax rate differential on capital loss carryback, etc.

     (9,769      —          —    

Other

     (523      (268      472  
  

 

 

    

 

 

    

 

 

 

Total income tax expense

   $ (26,844    $ (15,813    $ 14,647