Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2015

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of federal income tax expense computed by applying the federal income tax rate of 35% in 2017, 2016 and 2015 to income (loss) before federal income tax expense is as follows:



	Years Ended December 31,
	2017					2016					2015
	Amount			%		Amount			%		Amount			%
	(In thousands)
Expected tax expense (benefit)	$	(1,045	)	35.0	%	$	1,919		35.0	%	$	(680	)	35.0	%
Release of valuation allowance previously held in other comprehensive income	—			—		—			—		(42		)	2.2
Taxable stock sales	—			—		263			4.8		—			—
Tax-exempt interest and dividends-received deduction	(360		)	12.1		(553		)	(10.1	)	(746		)	38.4
Adjustment of prior year taxes	68			(2.3	)	29			0.5		(317		)	16.3
Effect of graduated rates	(140		)	4.7		(57		)	(1.0	)	(71		)	3.7
Effect of uncertain tax position	(355		)	11.9		1,672			30.5		1,890			(97.3	)
Nondeductible costs to remediate tax compliance issue	(384		)	12.9		241			4.4		1,152			(59.3	)
Tax reform re-measurement	35,718			(1,196.2	)	—			—		—			—
Goodwill impairment	1,621			(54.3	)	—			—		—			—
Other	18			(0.7	)	—			—		14			(0.8	)
Total income tax expense	$	35,141		(1,176.9	)%	$	3,514		64.1	%	$	1,200		(61.8	)%

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense consists of:



	Years Ended December 31,
	2017		2016		2015
	(In thousands)
Current	$	14,454	13,348		(2,315	)
Deferred	20,687		(9,834	)	3,515
Total income tax expense	$	35,141	3,514		1,200

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred federal income taxes are as follows:



	December 31,
	2017			2016
	(In thousands)
Deferred tax assets:
Future policy benefit reserves	$	78,372		123,101
Net operating and capital loss carryforwards	485			—
Accrued expenses	65			104
Investments	6,002			6,837
State income tax credits	—			119
Other	276			56
Total gross deferred tax assets	85,200			130,217
Deferred tax liabilities:
Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets	(25,518		)	(44,709	)
Unrealized gains on investments available-for-sale	(8,297		)	(7,556	)
Accrued policyholder dividends	(441		)	(815	)
Other	(147		)	(268	)
Total gross deferred tax liabilities	(34,403		)	(53,348	)
Net deferred tax asset	$	50,797		76,869

Change in deferred tax liability [Table Text Block]

A summary of the changes in the components of deferred federal and state income taxes is as follows:



	December 31,
	2017			2016
	(In thousands)
Deferred federal and state income taxes:
Balance January 1,	$	76,869		67,145
Deferred tax benefit	(20,687		)	9,834
Investments available-for-sale	(5,570		)	(128	)
Effects of unrealized gains on DAC, CCRA and reserves	(103		)	18
Reclassification of MGLIC NOL from current taxes payable	288			—
Balance December 31,	$	50,797		76,869

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of unrecognized tax benefits is as follows:



	Years ended December 31,
	2017		2016		2015
	(In thousands)

Balance at January 1,	$	85,762	78,079		81,459
Additions based on tax positions related to the current year	7,384		3,546		3,608
Additions for tax positions of prior years	2,685		4,706		1,570
Reductions for tax positions of prior years	—		(569	)	(8,558	)
Balance December 31,	$	95,831	85,762		78,079