Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

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

	Years Ended December 31,
	2016		2015		2014
Current Income Taxes:
Federal	$	26,927	$	(15,384)	$	24,389
State		89		40		177
		27,016		(15,344)		24,566
Deferred Income Taxes:
Federal		1,681		552		(602)
State		—		—		—
		1,681		552		(602)
Total income tax expense (benefit)	$	28,697	$	(14,792)	$	23,964

Schedule of sources of the difference and the tax effects

	Years Ended December 31,
	2016		2015		2014
Federal income tax expense (benefit), at statutory rate	$	32,649	$	(10,025)	$	29,162
Tax‑exempt investment income, net		(4,194)		(4,889)		(5,429)
State taxes, net		58		26		115
Nondeductible expenses		202		233		222
Other, net		(18)		(137)		(106)
Total income tax expense (benefit)	$	28,697	$	(14,792)	$	23,964

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,
	2016		2015
Deferred tax assets:
Discounting of loss reserves	$	5,984	$	6,668
Discounting of unearned premium reserve		28,286		27,542
Bad debt allowance		502		509
Employee benefits		7,995		7,922
Rent incentive		238		371
Depreciation		255		152
Other		—		—
Total deferred tax assets before valuation allowance		43,260		43,164
Valuation allowance for deferred tax assets		—		—
Total deferred tax assets		43,260		43,164
Deferred tax liabilities:
Deferred acquisition costs		(24,848)		(24,128)
Investments		(3,469)		(2,540)
Net unrealized gains on investments		(8,531)		(8,865)
Software development costs		(2,479)		(2,342)
Premium acquisition expenses		(850)		(856)
Other		—		(3)
Total deferred tax liabilities		(40,177)		(38,734)
Net deferred tax asset (liability)	$	3,083	$	4,430