INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018 and 2017 are as follows:



	December 31,
($ in thousands)	2018			2017
Loss reserve discounting	$	8,520		$	7,507
Unearned premium reserve limitation	10,915			10,284
Other policyholders' funds payable	1,849			2,103
Other, net	1,753			2,202
Total deferred income tax asset	23,037			22,096
Net unrealized holding gains on investment securities	(13,614		)	(22,195		)
Deferred policy acquisition costs	(9,400		)	(8,634		)
Retirement benefits	(2,968		)	(3,714		)
Other, net	(1,963		)	(2,573		)
Total deferred income tax liability	(27,945		)	(37,116		)
Net deferred income tax liability	$	(4,908	)	$	(15,020	)

Reconciliation of income tax expense (benefit)

The actual income tax expense benefit for the years ended December 31, 2018, 2017 and 2016 differed from the “expected” income tax expense (benefit) for those years (computed by applying the United States federal corporate tax rate of 21 percent during 2018 and 35 percent during 2017 and 2016 to income (loss) before income tax) as follows:



	Year ended December 31,
($ in thousands)	2018			2017			2016
Computed "expected" income tax expense (benefit)	$	(3,082	)	$	13,936		$	22,123
Increases (decreases) in tax resulting from:
Deferred income tax benefit from enactment of the TCJA	—			(9,056		)	—
Incremental benefit of net operating loss carry back	(1,690		)	—			—
Tax-exempt interest income	(1,183		)	(2,715		)	(2,803		)
Dividends received deduction	(549		)	(1,291		)	(1,429		)
Proration of tax-exempt interest and dividends received deduction	433			601			635
Investment tax credits	(540		)	(672		)	(1,392		)
Other, net	(597		)	(225		)	(130		)
Total income tax expense (benefit)	$	(7,208	)	$	578		$	17,004

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

Comprehensive income tax expense (benefit) included in the consolidated financial statements for the years ended December 31, 2018, 2017 and 2016 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)	2018			2017			2016
Income tax expense (benefit) on:
Operations	$	(7,208	)	$	578		$	17,004
Change in unrealized holding gains on investment securities available-for-sale	(2,534		)	10,205			(5,720		)
Change in funded status of retirement benefit plans:
Pension plans	(1,071		)	1,694			414
Postretirement benefit plans	(524		)	(774		)	(1,345		)
Comprehensive income tax expense (benefit)	$	(11,337	)	$	11,703		$	10,353