Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Summary of income tax assets and liabilities

The income tax assets and liabilities included in Other Assets and Other Liabilities, respectively, in the Consolidated Balance Sheets were as follows:

	December 31,
		2015		2014
Income tax (asset) liability
Current	$	1,000	$	(1,195	)
Deferred		201,208		261,784

Summary of deferred tax assets and liabilities

The “temporary differences” that gave rise to the deferred tax balances were as follows:

	December 31,
		2015		2014
Deferred tax assets
Unearned premium reserve reduction	$	17,402	$	15,721
Compensation accruals		13,737		14,765
Impaired securities		7,635		3,327
Other comprehensive income - net funded status of pension
and other postretirement benefit obligations		6,375		7,009
Discounting of unpaid claims and claim expense tax reserves		3,213		4,090
Postretirement benefits other than pensions		664		870
Other, net		1,189		-
Total gross deferred tax assets		50,215		45,782
Deferred tax liabilities
Other comprehensive income - net unrealized gains
on fixed maturities and equity securities		112,934		185,011
Deferred policy acquisition costs		85,341		70,796
Life insurance future policy benefit reserve		30,177		25,914
Investment related adjustments		18,709		20,064
Intangible assets		4,262		4,262
Other, net		-		1,519
Total gross deferred tax liabilities		251,423		307,566
Net deferred tax liability	$	201,208	$	261,784

Income Taxes Expenses

The components of income tax expense were as follows:

	Year Ended December 31,
		2015		2014		2013

Current	$	29,885	$	32,295	$	31,610
Deferred		6,085		9,575		11,563
Total income tax expense	$	35,970	$	41,870	$	43,173

Income Taxes Expenses Reconciliation

Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 35% to income before income taxes as follows:

		Year Ended December 31,
		2015			2014			2013
Expected federal tax on income	$	45,308		$	51,140		$	53,923
Add (deduct) tax effects of:
Tax-exempt interest		(6,678	)		(6,849	)		(6,829	)
Dividend received deduction		(3,564	)		(3,566	)		(3,382	)
Other, net		904			1,145			(539	)
Income tax expense provided on income	$	35,970		$	41,870		$	43,173

Unrecognized tax benefits, excluding interest and penalties

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:

		Year Ended December 31,
		2015			2014			2013
Balance as of the beginning of the year	$	656		$	641		$	-
Additions based on tax positions related to the current year		398			259			641
Settlements in tax positions for prior years		(15	)		(244	)		-
Balance as of the end of the year	$	1,039		$	656		$	641