Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of components of income tax expense (benefit)

Income tax expense (benefit) consists of the following components for the years ended December 31:



(In thousands)	2015		2014		2013
Current	$	18,910	$	2,816	$	881
Deferred	52,157		44,614		(8,267		)
Total income tax expense (benefit)	$	71,067	$	47,430	$	(7,386	)

Schedule of reconciliation of difference between income tax expense (benefit) and expected tax provision at weighted average tax rate

The reconciliation of the difference between income tax expense (benefit) and the expected tax provision at the weighted average tax rate was as follows for the years ended December 31:



($ in thousands)	2015			% of pretax income		2014			% of pretax income		2013			% of pretax income
Tax provision (benefit) at weighted average statutory rates	$	72,461		31.7	%	$	47,930		35.3	%	$	21,405		36.9	%
Non-deductible expenses	381			0.2		398			0.3		276			0.5
Tax exempt interest, net of proration	(1,741		)	(0.8	)	(961		)	(0.7	)	(159		)	(0.3	)
Change in valuation allowance	—			—		—			—		(28,886		)	(49.8	)
Other	(34		)	0.0		63			0.0		(22		)	0.0
Total income tax provision (benefit)	$	71,067		31.1	%	$	47,430		34.9	%	$	(7,386	)	(12.7	)%

Schedule of net deferred tax (liability) asset and components

The net deferred tax liability was comprised of the following at December 31:



(In thousands)	2015			2014
Deferred tax assets	$	36,908		$	31,729
Deferred tax liabilities	(124,872		)	(68,821		)
Net deferred tax liability	$	(87,964	)	$	(37,092	)

The components of the net deferred tax liability were as follows at December 31:



(In thousands)	2015			2014
Contingency reserves	$	(119,896	)	$	(63,103	)
Unearned premium reserve	17,801			16,099
Fixed assets	5,879			6,274
Nonvested shares	5,842			4,140
Start-up expenditures, net	4,158			4,611
Deferred policy acquisition costs	(4,035		)	(3,359		)
Unearned ceding commissions	2,557			—
Unrealized (gain) loss on investments	(760		)	(2,045		)
Accrued expenses	519			(155		)
Prepaid expenses	(181		)	(159		)
Loss reserves	126			86
Organizational expenditures	26			29
Alternative minimum tax credit carryforward	—			490
Net deferred tax liability	$	(87,964	)	$	(37,092	)