INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

Schedule of deferred tax assets and deferred tax liabilities

(in thousands)	2018		2017
Deferred tax assets:
Tax discounting of unpaid losses and settlement expenses	$	18,327	$	20,020
Unearned premium offset		17,864		16,528
Deferred compensation		2,700		1,435
Stock option expense		2,702		2,283
Other		616		578
Deferred tax assets before allowance	$	42,209	$	40,844
Less valuation allowance		—		—
Total deferred tax assets	$	42,209	$	40,844
Deferred tax liabilities:
Net unrealized appreciation of securities	$	22,177	$	51,448
Deferred policy acquisition costs		17,836		16,320
Discounting of unpaid losses and settlement expenses - TCJA implementation offset		5,203		9,466
Book/tax depreciation		3,133		3,159
Intangible assets		1,711		584
Undistributed earnings of unconsolidated investees		15,811		13,431
Other		576		204
Total deferred tax liabilities	$	66,447	$	94,612
Net deferred tax liability	$	(24,238)	$	(53,768)

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)	2018					2017					2016
Provision for income taxes at the statutory federal tax rates	$	14,192		21.0	%	$	29,606		35.0	%	$	54,979		35.0	%
Increase (reduction) in taxes resulting from:
Enactment of Tax Cuts and Jobs Act (TCJA)		(2,268)		(3.4)	%		(32,821)		(38.8)	%		—		—	%
Excess tax benefit on share-based compensation		(4,533)		(6.7)	%		(5,798)		(6.9)	%		—		—	%
Dividends received deduction		(775)		(1.1)	%		(2,025)		(2.4)	%		(2,216)		(1.4)	%
ESOP dividends paid deduction		(1,184)		(1.8)	%		(2,905)		(3.4)	%		(3,302)		(2.1)	%
Tax-exempt interest income		(1,795)		(2.7)	%		(4,671)		(5.5)	%		(4,263)		(2.7)	%
Unconsolidated investee dividends		—		—	%		(1,351)		(1.6)	%		(2,772)		(1.8)	%
Other items, net		(235)		(0.3)	%		(474)		(0.6)	%		(264)		(0.2)	%
Total	$	3,402		5.0	%	$	(20,439)		(24.2)	%	$	42,162		26.8	%