INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016 are as follows:



	December 31,
($ in thousands)	2017			2016
Loss reserve discounting	$	7,507		$	13,442
Unearned premium reserve limitation	10,284			16,497
Other policyholders' funds payable	2,103			4,574
Other, net	2,202			2,561
Total deferred income tax asset	22,096			37,074
Net unrealized holding gains on investment securities	(22,195		)	(26,786		)
Deferred policy acquisition costs	(8,634		)	(14,328		)
Retirement benefits	(3,714		)	(3,510		)
Other, net	(2,573		)	(3,771		)
Total deferred income tax liability	(37,116		)	(48,395		)
Net deferred income tax liability	$	(15,020	)	$	(11,321	)

Reconciliation of income tax expense (benefit)

The actual income tax expense for the years ended December 31, 2017, 2016 and 2015 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)	2017			2016			2015
Computed "expected" income tax expense	$	13,936		$	22,123		$	25,079
Increases (decreases) in tax resulting from:
Deferred income tax benefit from enactment of the TCJA	(9,056		)	—			—
Tax-exempt interest income	(2,715		)	(2,803		)	(2,805		)
Dividends received deduction	(1,291		)	(1,429		)	(1,136		)
Proration of tax-exempt interest and dividends received deduction	601			635			591
Investment tax credits	(672		)	(1,392		)	—
Other, net	(225		)	(130		)	(235		)
Total income tax expense	$	578		$	17,004		$	21,494

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, 2017, 2016 and 2015 is as follows. The deferred income tax benefit that resulted from the enactment of the TCJA in 2017 is included in the "operations" line.



	Year ended December 31,
($ in thousands)	2017			2016			2015
Income tax expense (benefit) on:
Operations	$	578		$	17,004		$	21,494
Change in unrealized holding gains on investment securities	10,205			(5,720		)	(9,689		)
Change in funded status of retirement benefit plans:
Pension plans	1,694			414			(1,748		)
Postretirement benefit plans	(774		)	(1,345		)	(1,071		)
Comprehensive income tax expense	$	11,703		$	10,353		$	8,986