Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Summary of income tax contingencies table

The Company's provision for income taxes consisted of the following:


	Years Ended December 31,
	2021		2020		2019
Current tax expense:	(in millions)
Federal	$	20.2	$	27.6	$	26.3
State	0.8		0.7		1.8
Total current tax expense	21.0		28.3		28.1
Deferred federal tax expense:

Other	6.7		(0.4)		8.6
Total deferred federal tax expense	6.7		(0.4)		8.6
Income tax expense	$	27.7	$	27.9	$	36.7

Reconciliation of federal staturoty income tax rates to the effective tax rates table

The differences between the statutory federal tax rate of 21% and the Company's effective tax rate on net income before income taxes as reflected in the Consolidated Statements of Comprehensive Income were as follows:


	Years Ended December 31,
	2021		2020		2019
	(in millions)
Expense computed at statutory rate	$	31.0	$	31.0	$	40.7
Tax-advantaged investment income	(1.7)		(1.9)		(2.4)
LPT deferred gain amortization	(1.9)		(2.2)		(2.3)
Stock based compensation	0.1		(0.2)		(0.9)
LPT Reserve Adjustment	(0.5)		(0.3)		(0.4)


Other	0.7		1.5		2.0
Income tax expense	$	27.7	$	27.9	$	36.7

Deferred tax assets and liabilities

The significant components of deferred income taxes, net, were as follows as of December 31:


	2021				2020
	Deferred Tax				Deferred Tax
	Assets		Liabilities		Assets		Liabilities
	(in millions)
Unrealized capital gains, net	$	—	$	43.5	$	—	$	50.7
Deferred policy acquisition costs	—		9.4		—		9.2
Intangible assets	—		1.6		—		1.6
Loss reserve discounting for tax reporting	30.0		—		30.3		—
Unearned premiums	11.9		—		11.5		—
Allowance for bad debt	2.3		—		2.4		—
Stock-based compensation	2.5		—		3.4		—
Accrued liabilities	4.1		—		3.5		—


Operating leases	3.5		3.0		4.2		3.6
Other	2.2		6.7		2.4		8.1
Total	$	56.5	$	64.2	$	57.7	$	73.2
Deferred income tax asset (liability), net	$	(7.7)			$	(15.5)