Income Taxes (Tables)

3 Months Ended

Mar. 31, 2019

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

Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate is as follows:



	Three Months Ended March 31,
	2019				2018
	Amount		%		Amount			%
	(In thousands, except for %)
Expected tax expense (benefit)	$	422	21.0	%	$	542		21.0	%
Foreign income tax rate differential	85		4.2	%	—			—	%
Annualized effective tax rate adjustment	3,319		165.3	%	2,882			111.7	%
Effect of uncertain tax position	1,192		59.4	%	702			27.2	%
Nondeductible costs to remediate tax compliance issue	—		—	%	(1,543		)	(59.8	)%
CICA Ltd. Subpart F income	711		35.3	%	—			—	%
Other	81		4.1	%	(41		)	(1.6	)%
Total federal income tax expense	$	5,810	289.3	%	$	2,542		98.5	%

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

Income tax expense consists of:



	Three Months Ended
	March 31,
	2019		2018
	(In thousands)
Current	$	5,671	4,335
Deferred	139		(1,793	)
Total federal income tax expense	$	5,810	2,542

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

The components of deferred federal income taxes are as follows:



	March 31, 2019			December 31, 2018
	(In thousands)
Deferred tax assets:
Future policy benefit reserves	$	2,835		2,795
Net operating and capital loss carryforwards	193			191
Accrued expenses	22			30
Investments	2,106			1,841
Deferred intercompany loss	4,999			5,190
Other	60			309
Total gross deferred tax assets	$	10,215		10,356
Deferred tax liabilities:
Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets	$	(8,712	)	(8,745	)
Unrealized gains on investments available-for-sale	(4,113		)	(1,968	)
Tax reserves transition liability	(4,690		)	(4,864	)
Other	(573		)	(488	)
Total gross deferred tax liabilities	(18,088		)	(16,065	)
Net deferred tax liability	$	(7,873	)	(5,709	)