Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Company's Current and Deferred Federal Tax Expense

Information about the Company’s current and deferred tax expense follows:



	Year Ended December 31,
	2016			2015		2014
Current expense	$	271,455		$	29,778	$	31,688
Deferred (benefit) expense	(65,212		)	11,235		3,311
Total income tax expense	$	206,243		$	41,013	$	34,999

Schedule of Reconciliation of the Federal Income Tax Rate to the Company's Effective Income Tax Rate

A reconciliation of the federal income tax rate to the Company's effective income tax rate follows:



	December 31,
	2016		2015		2014
Federal income tax rate:	35.0	%	35.0	%	35.0	%
Reconciling items:
Dividends-received deduction	(0.3	)%	(1.7	)%	(2.6	)%
Nondeductible health insurer fee	0.5	%	2.3	%	1.9	%
Change in liability for prior years' taxes	—	%	0.5	%	(0.3	)%
Goodwill	1.2	%	—	%	—	%
Capital contribution from affiliated entity impacting taxable income	3.7	%	—	%	—	%
Other	(0.1	)%	(0.5	)%	(0.4	)%
Effective income tax rate	40.0	%	35.6	%	33.6	%

Schedule of Significant Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that result in significant deferred tax assets and liabilities are as follows:



	December 31,
	2016			2015
Deferred tax assets:
Deferred gain on disposal of businesses	$	70,148		$	20,477
Investments, net	17,180			39,673
Deferred acquisition costs (1)	22,809			11,021
Policyholder and separate account reserves	13,267			—
Other	4,696			4,654
Total deferred tax asset	128,100			75,825
Deferred tax liabilities:
Net unrealized appreciation on securities	(57,870		)	(100,851		)
Policyholder and separate account reserves	—			(7,168		)
Other	(705		)	(6,486		)
Total deferred tax liability	(58,575		)	(114,505		)
Net deferred income tax asset (liability)	$	69,525		$	(38,680	)

(1) For life policies, tax law requires that a percentage of premiums related to life insurance contracts be capitalized as tax DAC and amortized over a period of years. Therefore, the tax DAC balance is not affected by the significant decrease in the GAAP DAC balance as of December 31, 2016.