INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

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

Temporary differences between the consolidated financial statement carrying amount and tax basis of assets and liabilities that give rise to significant portions of the deferred income tax asset (liability) at December 31, 2015 and 2014 are as follows:



	December 31,
($ in thousands)	2015			2014
Loss reserve discounting	$	13,929		$	15,681
Unearned premium reserve limitation	16,310			15,648
Other policyholders' funds payable	3,052			3,553
Other, net	1,730			1,145
Total deferred income tax asset	35,021			36,027
Net unrealized holding gains on investment securities	(32,506		)	(42,195		)
Deferred policy acquisition costs	(14,252		)	(13,770		)
Retirement benefits	(3,606		)	(5,712		)
Other, net	(3,686		)	(3,004		)
Total deferred income tax liability	(54,050		)	(64,681		)
Net deferred income tax liability	$	(19,029	)	$	(28,654	)

Reconciliation of income tax expense (benefit)

The actual income tax expense for the years ended December 31, 2015, 2014 and 2013 differed from the “expected” income tax expense for those years (computed by applying the United States federal corporate tax rate of 35 percent to income before income tax expense) as follows:



	Year ended December 31,
($ in thousands)	2015			2014			2013
Computed "expected" income tax expense	$	25,079		$	14,318		$	21,298
Increases (decreases) in tax resulting from:
Tax-exempt interest income	(2,805		)	(3,285		)	(3,828		)
Dividends received deduction	(1,136		)	(828		)	(876		)
Proration of tax-exempt interest and dividends received deduction	591			617			706
Other, net	(235		)	93			34
Total income tax expense	$	21,494		$	10,915		$	17,334

Schedule Of Components Of Comprehensive Income Tax Expense Benefit [Table Text Block]

Comprehensive income tax expense included in the consolidated financial statements for the years ended December 31, 2015, 2014 and 2013 is as follows:



	Year ended December 31,
($ in thousands)	2015			2014			2013
Income tax expense (benefit) on:
Operations	$	21,494		$	10,915		$	17,334
Change in unrealized holding gains on investment securities	(9,689		)	16,146			(11,539		)
Change in funded status of retirement benefit plans:
Pension plans	(1,748		)	(2,619		)	5,498
Postretirement benefit plans	(1,071		)	(1,330		)	12,103
Comprehensive income tax expense	$	8,986		$	23,112		$	23,396