Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Summary of income tax expense (benefit) in the Consolidated Statements of Operations

	Years Ended December 31,
	2019		2018		2017
Current Income Taxes:
Federal	$	19,280	$	26,548	$	22,198
State		43		108		30
		19,323		26,656		22,228
Deferred Income Taxes:
Federal		4,757		(5,600)		2,085
State		—		—		—
		4,757		(5,600)		2,085
Total income tax expense	$	24,080	$	21,056	$	24,313

Schedule of sources of the difference and the tax effects

	Years Ended December 31,
	2019		2018		2017
Federal income tax expense at statutory rate	$	25,973	$	21,893	$	30,345
Tax‑exempt investment income, net		(1,626)		(1,862)		(4,123)
State taxes, net		34		85		19
Nondeductible expenses		488		494		237
Remeasurement of deferred tax liability upon enactment of the TCJA		—		—		(1,540)
Tax windfall related to share-based stock compensation		(1,003)		(79)		(333)
Other, net		214		525		(292)
Total income tax expense	$	24,080	$	21,056	$	24,313

Schedule of deferred income tax asset (liability) representing the tax effects of temporary differences attributable to the Company's consolidated federal tax return group

	Years Ended December 31,
	2019		2018
Deferred tax assets:
Discounting of loss reserves	$	5,642	$	5,688
Discounting of unearned premium reserve		17,710		17,475
Investments		—		1,972
Bad debt allowance		274		274
Employee benefits		4,340		4,159
Rent incentive		1,063		1,181
Total deferred tax assets before valuation allowance		29,029		30,749
Valuation allowance for deferred tax assets		—		—
Total deferred tax assets		29,029		30,749
Deferred tax liabilities:
Deferred acquisition costs		(15,600)		(15,405)
Investments		(1,744)		—
Net unrealized gains on investments		(11,985)		(1,645)
Loss reserve transition adjustment		(1,662)		(2,229)
Software development costs		(2,109)		(1,268)
Premium acquisition expenses		(509)		(512)
Depreciation		(1,137)		(941)
Total deferred tax liabilities		(34,746)		(22,000)
Net deferred tax (liability) asset	$	(5,717)	$	8,749