INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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, 2016 and 2015 are as follows:



	December 31,
($ in thousands)	2016			2015
Loss reserve discounting	$	13,442		$	13,929
Unearned premium reserve limitation	16,497			16,310
Other policyholders' funds payable	4,574			3,052
Other, net	2,561			1,730
Total deferred income tax asset	37,074			35,021
Net unrealized holding gains on investment securities	(26,786		)	(32,506		)
Deferred policy acquisition costs	(14,328		)	(14,252		)
Retirement benefits	(3,510		)	(3,606		)
Other, net	(3,771		)	(3,686		)
Total deferred income tax liability	(48,395		)	(54,050		)
Net deferred income tax liability	$	(11,321	)	$	(19,029	)

Reconciliation of income tax expense (benefit)

The actual income tax expense for the years ended December 31, 2016, 2015 and 2014 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)	2016			2015			2014
Computed "expected" income tax expense	$	22,123		$	25,079		$	14,318
Increases (decreases) in tax resulting from:
Tax-exempt interest income	(2,803		)	(2,805		)	(3,285		)
Dividends received deduction	(1,429		)	(1,136		)	(828		)
Proration of tax-exempt interest and dividends received deduction	635			591			617
Investment tax credits	(1,546		)	—			—
Other, net	24			(235		)	93
Total income tax expense	$	17,004		$	21,494		$	10,915

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, 2016, 2015 and 2014 is as follows:



	Year ended December 31,
($ in thousands)	2016			2015			2014
Income tax expense (benefit) on:
Operations	$	17,004		$	21,494		$	10,915
Change in unrealized holding gains on investment securities	(5,720		)	(9,689		)	16,146
Change in funded status of retirement benefit plans:
Pension plans	414			(1,748		)	(2,619		)
Postretirement benefit plans	(1,345		)	(1,071		)	(1,330		)
Comprehensive income tax expense	$	10,353		$	8,986		$	23,112