Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Significant components of deferred tax assets and liabilities

Significant components of the Company's deferred tax assets and liabilities as of December 31 are as follows:

	2017		2016
Deferred tax liabilities:
Unrealized gain on fixed income and equity security investments	$	15,086	$	18,335
Deferred acquisition costs		1,804		874
Loss and loss expense reserves		2,623		1,198
Limited partnership investments		3,826		2,274
Accelerated depreciation		492		1,037
Other		1,791		1,251
Total deferred tax liabilities		25,622		24,969

Deferred tax assets:
Loss and loss expense reserves		6,761		9,467
Unearned premiums discount		1,837		1,295
Other-than-temporary investment declines		815		858
Deferred compensation		885		1,097
Deferred ceding commission		627		464
Other		339		376
Total deferred tax assets		11,264		13,557

Net deferred tax liabilities	$	14,358	$	11,412

Summary of the difference between federal income taxes expense computed at the statutory rate

A summary of the difference between federal income tax expense computed at the statutory rate and that reported in the consolidated financial statements is as follows:

	2017			2016			2015

Statutory federal income rate applied to pretax income	$	3,543		$	15,069		$	11,883
Tax effect of (deduction):
Tax-exempt investment income		(968	)		(938	)		(919	)
Change in enacted tax rates		(9,572	)		-			-
Other		(1,204	)		(22	)		(295	)
Federal income tax expense (benefit)	$	(8,201	)	$	14,109		$	10,669

Federal income tax expense (benefit)

Federal income tax expense (benefit) consists of the following:
	2017			2016		2015
Taxes (benefit) on pre-tax income:
Current	$	(4,335	)	$	11,271	$	12,488
Deferred		(3,866	)		2,838		(1,819	)
	$	(8,201	)	$	14,109	$	10,669

Components of provisions for deferred federal income taxes (credits)

	2017			2016			2015
Limited partnerships	$	4,099		$	503		$	(2,865	)
Discounts of loss and loss expense reserves		1,315			(114	)		1,526
Reserves - salvage and subrogation and other		56			(1,110	)		29
Unearned premium discount		(1,767	)		298			608
Deferred compensation		(168	)		595			(127	)
Other-than-temporary investment declines		(127	)		2,320			(1,416	)
Deferred acquisitions costs and ceding commission		1,553			(95	)		(287	)
Change in enacted tax rates		(9,572	)		-			-
Other		745			441			713
Provision for deferred federal income tax	$	(3,866	)	$	2,838		$	(1,819	)