Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Net deferred tax assets and liabilities

Net deferred tax liabilities included on the Consolidated Balance Sheet at December 31, 2021 and 2020 as a component of Other liabilities are as follows:

Deferred tax assets and liabilities
Table	12.1
(In thousands)		2021		2020
Total deferred tax assets		$	32,331	$	38,443
Total deferred tax liabilities		(71,743)		(98,485)
Net deferred tax liability		$	(39,412)	$	(60,042)

Components of the net deferred tax asset (liability)

Table 12.2 includes the components of the net deferred tax liability as of December 31, 2021 and 2020.

Deferred tax components
Table	12.2
(In thousands)		2021		2020
Unearned premium reserves		$	19,116	$	23,163
Benefit plans		(21,360)		(13,977)
Loss reserves		4,034		3,542
Unrealized appreciation in investments		(39,883)		(72,341)
Deferred Policy Acquisition Cost		(4,551)		(4,528)
Deferred compensation		6,118		6,776
Other, net		(2,886)		(2,677)
Net deferred tax liability		$	(39,412)	$	(60,042)

Components of the provision for (benefit from) income taxes

Table 12.3 summarizes the components of the provision for income taxes:

Provision for (benefit from) income taxes
Table	12.3
(In thousands)		2021		2020		2019
Current Federal		$	161,055	$	85,574	$	162,911
Deferred Federal		4,392		28,244		11,860
Other		1,347		(648)		(557)
Provision for income taxes		$	166,794	$	113,170	$	174,214

Reconciliation of federal statutory income tax rate

Table 12.4 reconciles the federal statutory income tax rate to our effective tax provision rate.

Effective tax rate reconciliation
Table	12.4
		2021		2020		2019
Federal statutory income tax rate		21.0	%	21.0	%	21.0	%
Tax exempt municipal bond interest		(0.6)	%	(0.9)	%	(0.6)	%
Other, net		0.4	%	0.1	%	0.1	%
Effective tax rate		20.8	%	20.2	%	20.5	%