Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Net deferred tax assets and liabilities

Net deferred tax assets (liabilities) as reported on the consolidated balance sheets as of December 31, 2024 and 2023 are shown in table 12.1 below.

Deferred tax assets and liabilities
Table	12.1
(In thousands)		2024		2023
Total deferred tax assets		$	105,437	$	109,391
Total deferred tax liabilities		(35,562)		(29,609)
Net deferred tax asset (liability)		$	69,875	$	79,782

Components of the net deferred tax asset (liability)

Table 12.2 includes the components of the net deferred tax asset (liability) as of December 31, 2024 and 2023.

Deferred tax components
Table	12.2
(In thousands)		2024		2023
Unearned premium reserves		$	11,111	$	13,862
Benefit plans		(25,195)		(19,142)
Loss reserves		2,291		1,921
Unrealized losses on investments		68,550		70,961
Deferred policy acquisition cost		(2,456)		(3,064)
Deferred compensation		7,878		7,466
Research and experimental costs		14,143		13,351
Other, net		(6,447)		(5,573)
Net deferred tax asset (liability)		$	69,875	$	79,782

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)		2024		2023		2022
Current federal		$	199,090	$	187,246	$	228,259
Deferred federal		1,805		1,550		(5,235)
Other		4,820		484		1,661
Provision for income taxes		$	205,715	$	189,280	$	224,685

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
		2024		2023		2022
Federal statutory income tax rate		21.0	%	21.0	%	21.0	%
Tax exempt municipal bond interest		(0.3)	%	(0.5)	%	(0.5)	%
Other, net		0.5	%	0.5	%	0.1	%
Effective tax rate		21.2	%	21.0	%	20.6	%