Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are summarized below.

(in thousands)	2021			2020
Deferred tax assets:
Tax discounting of unpaid losses and settlement expenses	$	22,637		$	21,096
Unearned premium offset		23,080			19,862
Deferred compensation		3,469			2,829
Stock option expense		3,089			2,749
Lease liability		3,796			3,971
Other		367			389
Deferred tax assets before allowance	$	56,438		$	50,896
Less valuation allowance		—			—
Total deferred tax assets	$	56,438		$	50,896

Deferred tax liabilities:
Net unrealized appreciation of securities	$	76,533		$	77,639
Deferred policy acquisition costs		21,746			18,569
Lease asset		3,101			3,402
Discounting of unpaid losses and settlement expenses - Tax Cuts and Jobs Act (TCJA) implementation offset		2,545			3,181
Fixed assets		3,518			3,439
Intangible assets		1,537			1,558
Undistributed earnings of unconsolidated investees		29,515			21,813
Other		1,452			1,530
Total deferred tax liabilities	$	139,947		$	131,131
Net deferred tax liability	$	(83,509	)	$	(80,235	)

Schedule of Reconciliation of Income Tax Expense (Benefit) Attributable to Income from Operations with Amounts Computed by Applying U.S. Federal Tax Rate to Pretax Income from Continuing Operations

Income tax expense (benefit) attributable to income from operations for the years ended December 31, 2021, 2020 and 2019, differed from the amounts computed by applying the U.S. federal tax rate of 21 percent to pretax income from continuing operations as demonstrated in the following table:

(in thousands)	2021						2020						2019
Provision for income taxes at the statutory federal tax rates	$	72,307		21.0		%	$	39,867		21.0		%	$	48,874		21.0		%
Increase (reduction) in taxes resulting from:
Excess tax benefit on share-based compensation		(3,090	)	(0.9	)	%		(3,537	)	(1.8	)	%		(3,958	)	(1.7	)	%
Tax-exempt interest income		(1,219	)	(0.3	)	%		(1,293	)	(0.7	)	%		(1,238	)	(0.5	)	%
Dividends received deduction		(891	)	(0.3	)	%		(883	)	(0.5	)	%		(823	)	(0.4	)	%
Investment tax credit		(3,491	)	(1.0	)	%		(2,435	)	(1.3	)	%		—		—		%
ESOP dividends paid deduction		(1,566	)	(0.5	)	%		(1,083	)	(0.6	)	%		(1,122	)	(0.5	)	%
Unconsolidated investee dividends		—		—		%		(479	)	(0.2	)	%		(1,802	)	(0.8	)	%
Nondeductible expenses		3,834		1.1		%		1,878		1.0		%		1,649		0.7		%
Other items, net		(917	)	(0.2	)	%		715		0.4		%		(488	)	(0.1	)	%
Total	$	64,967		18.9		%	$	32,750		17.3		%	$	41,092		17.7		%