Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of weighted-average tax rate as well as a reconciliation to total tax expense

A reconciliation of the difference between the Company’s Federal income tax provision on U.S. income and the expected Federal tax provision on U.S. income using the weighted-average tax rate as well as a reconciliation to total tax expense is as follows:



	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Federal income tax expense at applicable statutory rates	$	14,843		$	7,875		$	17,541
Tax-exempt investment income	(230		)	(272		)	(586		)
Dividends received deduction	(307		)	(307		)	(792		)
Excess tax benefits on share based compensation	(1,099		)	(567		)	(2,114		)
Effect of tax rate reduction on deferred tax liability	—			220			(3,498		)
Other	99			145			(90		)
Federal income tax expense	$	13,306		$	7,094		$	10,461
U.S. state income tax expense (benefit)	222			(86		)	65
U.S. dividend withholding tax	—			—			1,053
Total income tax expense	$	13,528		$	7,008		$	11,579

Schedule of deferred tax asset at the current prevailing corporate income tax rate

The significant components of net deferred tax assets (liabilities) at the corporate income tax rate of 21% for the years ended December 31, 2019 and 2018 are summarized as follows:



	December 31,
	2019		2018
	(in thousands)
Deferred tax assets:
Accrued compensation expenses	$	2,563	$	2,456
Reserve for losses and loss adjustment expenses	12,286		7,482
Unearned premiums	8,226		5,711
Share based compensation	1,482		1,352
Allowance for doubtful accounts	1,188		829
Property and equipment	16		1,909
Other	1,974		1,903
Total deferred tax assets	27,735		21,642
Deferred tax liabilities:
Intangible assets	7,381		7,461
Net unrealized gains	5,792		887
Deferred policy acquisition costs	4,448		3,491
Equity method investments	9,316		8,582
Other	134		167
Total deferred tax liabilities	27,071		20,588
Net deferred tax assets	$	664	$	1,054