Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

The provision for income taxes is comprised of the following:

The following table presents a reconciliation between the statutory federal income tax rate and the Company’s effective federal income tax rate:



	Year Ended December 31,
	2014		2013		2012
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Income tax effect of:
Investment income not subject to federal tax	(1.8	)%	(4.6	)%	(2.3	)%
Tax credits	(0.3	)%	(2.0	)%	(1.3	)%
State income taxes, net of federal benefit	1.0	%	3.3	%	1.2	%
Income tax contingency provisions	(1.2	)%	(0.4	)%	—	%
Other, net	0.2	%	—	%	3.6	%
Effective federal income tax rate	32.9	%	31.3	%	36.2	%

A reconciliation of unrecognized tax benefits is as follows:



	Year Ended December 31,
	2014			2013			2012
Balance, beginning of year	$	21,154		$	25,850		$	32,123
Additions to tax positions in the current year	13,931			—			6,230
Additions to tax positions in the prior year	—			1,497			420
Reductions to tax positions in the prior year	—			(180		)	(10,219		)
Reductions to tax positions from statutes expiring	(8,195		)	(6,013		)	(2,704		)
Balance, end of year	$	26,890		$	21,154		$	25,850

The tax effect of temporary differences, which give rise to the deferred tax assets and liabilities, is as follows:



	December 31,
	2014				2013
	Deferred		Deferred		Deferred		Deferred
	tax asset		tax liability		tax asset		tax liability
Policyholder reserves	$	—	$	255,926	$	—	$	253,738
Deferred acquisition costs	2,467		—		1,008		—
Investment assets	—		426,477		—		203,363
Policyholder dividends	10,002		—		11,479		—
Net operating loss carryforward	122,177		—		172,414		—
Pension plan accrued benefit liability	84,351		—		53,937		—
Goodwill	—		26,022		—		25,563
Experience rated refunds	13,431		—		5,509		—
Tax credits	149,516		—		131,052		—
Other	11,865		—		416		—
Total deferred taxes	$	393,809	$	708,425	$	375,815	$	482,664

As of December 31, 2014, the subsidiary had net operating loss carry forwards expiring as follows: