Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The following table summarizes the provision for income taxes:



	Year Ended December 31,
	2016			2015		2014
Federal:
Current	$	(1,906	)	$	10,143	$	21,633
Deferred	1,920			2,103		(996		)
Provision for Federal income tax expense	14			12,246		20,637

State:
Current	1,001			2,054		2,945
Deferred	290			202		(185		)
Provision for State income tax expense	1,291			2,256		2,760
Provision for income taxes	$	1,305		$	14,502	$	23,397

Tax Expense Reconciliation

The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows:



	Year Ended December 31,
	2016			2015			2014
Expected income tax expense at federal rate	$	2,381		$	14,671		$	22,545
State tax expense, net of federal deduction benefit	934			1,023			1,660
Dividend received deduction	(217		)	—			(350		)
Prior period adjustment	—			42			—
Section 847 payments	—			(693		)	—
Municipal tax exempt interest	(1,011		)	—			—
Other, net	(782		)	(541		)	(458		)
Reported income tax expense	$	1,305		$	14,502		$	23,397

Schedule of Deferred Tax Assets and Liabilities

The table below summarizes the significant components of our net deferred tax liability:



	December 31,
	2016			2015
Deferred tax assets:
Unearned premiums	$	19,113		$	18,182
Tax-related discount on loss reserve	1,479			936
Bad debt expense	54			51
Other-than-temporary impairment	27			28
Other	507			432
Total deferred tax assets	21,180			19,629
Deferred tax liabilities:
Unrealized gain	(642		)	(1,019		)
Deferred acquisitions costs	(19,586		)	(18,976		)
Capitalized software	(1,505		)	(251		)
Intangible asset	(3,371		)	(1,974		)
Other	(895		)	(433		)
Total deferred tax liabilities	(25,999		)	(22,653		)
Net deferred tax liability	$	(4,819	)	$	(3,024	)