Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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:



($ in thousands)	December 31,
	2017			2016
Income tax (asset) liability
Current	$	(16,266	)	$	(3,832	)
Deferred	157,775			205,699

Summary of deferred tax assets and liabilities



($ in thousands)	December 31,
	2017		2016
Deferred tax assets
Unearned premium reserve reduction	$	11,472	$	18,253
Compensation accruals	8,359		15,893
Impaired securities	2,240		8,214
Other comprehensive income - net funded status of pension and other postretirement benefit obligations	3,526		6,387
Discounting of unpaid claims and claim expense tax reserves	3,889		2,463
Postretirement benefits other than pensions	321		578
Total gross deferred tax assets	29,807		51,788
Deferred tax liabilities
Other comprehensive income - net unrealized gains on fixed maturity and equity securities	95,583		112,311
Deferred policy acquisition costs	52,438		91,028
Life insurance future policy benefit reserve	102		33,145
Life insurance future policy benefit reserve (transitional rule)	23,869		—
Discounting of unpaid claims and claim expense tax reserves (transitional rule)	2,513		—
Investment related adjustments	8,127		15,762
Intangible assets	2,557		4,262
Other, net	2,393		979
Total gross deferred tax liabilities	187,582		257,487
Net deferred tax liability	$	157,775	$	205,699

Summary of Loss Carryforwards and Credits

At December 31, 2017, the Company had available the following carryforwards or credits.



($ in thousands)	Pretax
	Amount		Expiration Years

Operating loss carryforwards	$	705	2037
Charitable contributions carryforwards	296		2021-2022

Income Taxes Expenses

The components of the provision for income tax expense were as follows:



($ in thousands)	Years Ended December 31,
	2017			2016		2015

Current	$	3,813		$	26,359	$	29,885
Deferred	(84,585		)	4,108		6,085
Total income tax expense	$	(80,772	)	$	30,467	$	35,970

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:



($ in thousands)	Years Ended December 31,
	2017			2016			2015

Expected federal tax on income	$	31,041		$	39,981		$	45,308
Add (deduct) tax effects of:
Tax-exempt interest	(5,335		)	(5,789		)	(6,678		)
Dividend received deduction	(4,448		)	(3,985		)	(3,564		)
Tax Act DTL re-measurement	(98,988		)	—			—
Employee share-based compensation	(3,258		)	127			265
Other, net	216			133			639
Income tax expense (benefit) provided on income	$	(80,772	)	$	30,467		$	35,970

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:



($ in thousands)	Years Ended December 31,
	2017			2016			2015

Balance as of the beginning of the year	$	1,594		$	1,039		$	656
Increases related to prior year tax positions	101			348			—
Decreases related to prior year tax positions	—			—			(15		)
Increases related to current year tax positions	422			283			398
Settlements	—			—			—
Lapse of statute	(327		)	(76		)	—
Balance as of the end of the year	$	1,790		$	1,594		$	1,039