Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of components of income tax expense

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



(In thousands)	2016		2015		2014
Current	$	31,712	$	18,910	$	2,816
Deferred	57,564		52,157		44,614
Total income tax expense	$	89,276	$	71,067	$	47,430

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

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



($ in thousands)	2016			% of pretax income		2015			% of pretax income		2014			% of pretax income
Tax provision at weighted average statutory rates	$	91,092		29.2	%	$	72,461		31.7	%	$	47,930		35.3	%
Non-deductible expenses	378			0.1		381			0.2		398			0.3
Tax exempt interest, net of proration	(2,181		)	(0.7	)	(1,741		)	(0.8	)	(961		)	(0.7	)
Other	(13		)	0.0		(34		)	0.0		63			0.0
Total income tax provision	$	89,276		28.6	%	$	71,067		31.1	%	$	47,430		34.9	%

Schedule of net deferred tax (liability) asset and components

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



(In thousands)	2016			2015
Deferred tax assets	$	43,291		$	36,908
Deferred tax liabilities	(185,878		)	(124,872		)
Net deferred tax liability	$	(142,587	)	$	(87,964	)

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



(In thousands)	2016			2015
Contingency reserves	$	(181,031	)	$	(119,896	)
Unearned premium reserve	19,722			17,801
Nonvested shares	8,445			5,842
Fixed assets	4,702			5,879
Deferred policy acquisition costs	(4,690		)	(4,035		)
Start-up expenditures, net	3,705			4,158
Unearned ceding commissions	3,568			2,557
Unrealized (gain) loss on investments	2,181			(760		)
Accrued expenses	775			519
Prepaid expenses	(157		)	(181		)
Loss reserves	170			126
Organizational expenditures	23			26
Net deferred tax liability	$	(142,587	)	$	(87,964	)