INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES

Schedule of deferred tax assets and deferred tax liabilities

(in thousands)	2013			2012
Deferred tax assets:
Tax discounting of claim reserves	$	22,200		$	25,462
Unearned premium offset	23,163			20,731
Deferred compensation	6,193			5,614
Stock option expense	4,160			4,678
NOL carryforward	1,059			3,223
Other	604			433
Deferred tax assets before allowance	57,379			60,141
Less valuation allowance	—			—
Total deferred tax assets	$	57,379		$	60,141
Deferred tax liabilities:
Net unrealized appreciation of securities	$	73,198		$	77,036
Deferred policy acquisition costs	21,528			18,320
Book/tax depreciation	2,632			1,060
Intangible assets from CBIC acquisition	4,235			4,541
Undistributed earnings of unconsolidated investee	12,995			13,812
Other	592			938
Total deferred tax liabilities	115,180			115,707
Net deferred tax liability	$	(57,801	)	$	(55,566	)

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)	2013			2012			2011
Provision for income taxes at the statutory federal tax rates	$	61,483		$	49,956		$	64,255
Increase (reduction) in taxes resulting from:
Dividends received deduction	(2,490		)	(2,630		)	(1,980		)
ESOP dividends paid deduction	(2,532		)	(3,596		)	(3,367		)
Tax-exempt interest income	(3,758		)	(2,995		)	(2,412		)
Unconsolidated investee dividends	(3,696		)	(1,848		)	—
Other items, net	404			499			492
Total	$	49,411		$	39,386		$	56,988