INCOME TAXES (Tables) - 10K

12 Months Ended

Dec. 31, 2014

INCOME TAXES

Schedule of deferred tax assets and deferred tax liabilities

(in thousands)	2014		2013
Deferred tax assets:
Tax discounting of claim reserves	$	19,609	$	22,200
Unearned premium offset		24,322		23,163
Deferred compensation		6,143		6,193
Stock option expense		5,046		4,160
NOL carryforward		—		1,059
Other		453		604
Deferred tax assets before allowance	$	55,573	$	57,379
Less valuation allowance		—		—
Total deferred tax assets	$	55,573	$	57,379
Deferred tax liabilities:
Net unrealized appreciation of securities	$	92,562	$	73,198
Deferred policy acquisition costs		22,793		21,528
Book/tax depreciation		3,610		2,632
Intangible assets from CBIC acquisition		3,594		4,235
Undistributed earnings of unconsolidated investees		14,728		12,995
Other		571		592
Total deferred tax liabilities	$	137,858	$	115,180
Net deferred tax liability	$	(82,285)	$	(57,801)

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)	2014		2013		2012
Provision for income taxes at the statutory federal tax rates	$	66,320	$	61,483	$	49,956
Increase (reduction) in taxes resulting from:
Dividends received deduction		(2,390)		(2,490)		(2,630)
ESOP dividends paid deduction		(4,473)		(2,532)		(3,596)
Tax-exempt interest income		(4,118)		(3,758)		(2,995)
Unconsolidated investee dividends		(1,848)		(3,696)		(1,848)
Other items, net		551		404		499
Total	$	54,042	$	49,411	$	39,386