INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Schedule of deferred tax assets and deferred tax liabilities

(in thousands)	2016		2015
Deferred tax assets:
Tax discounting of unpaid losses and settlement expenses	$	17,330	$	17,866
Unearned premium offset		26,712		25,848
Deferred compensation		4,727		6,231
Stock option expense		4,114		4,482
Other		685		657
Deferred tax assets before allowance	$	53,568	$	55,084
Less valuation allowance		—		—
Total deferred tax assets	$	53,568	$	55,084
Deferred tax liabilities:
Net unrealized appreciation of securities	$	66,973	$	67,740
Deferred policy acquisition costs		25,602		24,440
Book/tax depreciation		4,819		4,613
Intangible assets		1,980		3,878
Undistributed earnings of unconsolidated investees		18,397		17,888
Other		291		518
Total deferred tax liabilities	$	118,062	$	119,077
Net deferred tax liability	$	(64,494)	$	(63,993)

Schedule of reconciliation of income tax expense attributable to income from operations with amounts computed by applying the U.S. federal tax rate to pretax income from continuing operations

(in thousands)	2016		2015		2014
Provision for income taxes at the statutory federal tax rates	$	54,979	$	68,839	$	66,320
Increase (reduction) in taxes resulting from:
Dividends received deduction		(2,216)		(2,278)		(2,390)
ESOP dividends paid deduction		(3,302)		(3,377)		(4,473)
Tax-exempt interest income		(4,263)		(4,214)		(4,118)
Unconsolidated investee dividends		(2,772)		—		(1,848)
Other items, net		(264)		168		551
Total	$	42,162	$	59,138	$	54,042