INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES

Schedule of deferred tax assets and deferred tax liabilities

(in thousands)	2015		2014
Deferred tax assets:
Tax discounting of unpaid losses and settlement expenses	$	17,866	$	19,609
Unearned premium offset		25,848		24,322
Deferred compensation		6,231		6,143
Stock option expense		4,482		5,046
Other		657		453
Deferred tax assets before allowance	$	55,084	$	55,573
Less valuation allowance		—		—
Total deferred tax assets	$	55,084	$	55,573
Deferred tax liabilities:
Net unrealized appreciation of securities	$	67,740	$	92,562
Deferred policy acquisition costs		24,440		22,793
Book/tax depreciation		4,613		3,610
Intangible assets from CBIC acquisition		3,392		3,594
Undistributed earnings of unconsolidated investees		17,888		14,728
Other		1,004		571
Total deferred tax liabilities	$	119,077	$	137,858
Net deferred tax liability	$	(63,993)	$	(82,285)

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)	2015		2014		2013
Provision for income taxes at the statutory federal tax rates	$	68,839	$	66,320	$	61,483
Increase (reduction) in taxes resulting from:
Dividends received deduction		(2,278)		(2,390)		(2,490)
ESOP dividends paid deduction		(3,377)		(4,473)		(2,532)
Tax-exempt interest income		(4,214)		(4,118)		(3,758)
Unconsolidated investee dividends		—		(1,848)		(3,696)
Other items, net		168		551		404
Total	$	59,138	$	54,042	$	49,411