Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Summary of income tax expense in the Consolidated Statements of Operations

	Years Ended December 31,
	2021		2020		2019
Current Income Taxes:
Federal	$	28,222	$	31,133	$	19,280
State		15		267		43
		28,237		31,400		19,323
Deferred Income Taxes:
Federal		5,323		5,159		4,757
State		—		—		—
		5,323		5,159		4,757
Total income tax expense	$	33,560	$	36,559	$	24,080

Schedule of sources of the difference and the tax effects

	Years Ended December 31,
	2021		2020		2019
Federal income tax expense at statutory rate	$	34,496	$	36,702	$	25,973
Investment income, net		(1,060)		(1,394)		(1,626)
State taxes, net		11		211		34
Nondeductible expenses		613		697		488
Tax windfall related to share-based stock compensation		(101)		(298)		(1,003)
Other, net		(399)		641		214
Total income tax expense	$	33,560	$	36,559	$	24,080

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,
	2021		2020
Deferred tax assets:
Discounting of loss reserves	$	5,447	$	5,421
Discounting of unearned premium reserve		16,813		17,217
Bad debt allowance		430		433
Employee benefits		4,364		3,609
Rent incentive		797		912
Total deferred tax assets before valuation allowance		27,851		27,592
Valuation allowance for deferred tax assets		—		—
Total deferred tax assets		27,851		27,592
Deferred tax liabilities:
Deferred acquisition costs		(15,335)		(15,742)
Investments		(10,319)		(4,349)
Net unrealized gains on investments		(11,025)		(18,720)
Loss reserve transition adjustment		(1,108)		(1,385)
Software development costs		(3,591)		(3,053)
Premium acquisition expenses		(380)		(379)
Depreciation		(1,333)		(1,575)
Total deferred tax liabilities		(43,091)		(45,203)
Net deferred tax liability	$	(15,240)	$	(17,611)