Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Net deferred tax assets and liabilities

Net deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows:

	2013			2012
	(In thousands)
Total deferred tax assets	$	1,043,477		$	997,784
Total deferred tax liabilities		(42,158	)		(44,350	)
Net deferred tax asset before valuation allowance		1,001,319			953,434
Valuation allowance		(1,004,256	)		(965,987	)
Net deferred tax liability	$	(2,937	)	$	(12,553	)

Components of the net deferred tax liability

The components of the net deferred tax liability as of December 31, 2013 and 2012 are as follows:

	2013			2012
	(In thousands)
Benefit plans	$	(26,111	)	$	77
Net operating loss		915,378			866,700
Loss reserves		36,236			55,615
Unrealized (appreciation) depreciation in investments		29,230			(14,448	)
Mortgage investments		13,450			14,602
Deferred compensation		15,994			13,288
Premium deficiency reserves		16,961			25,823
Other, net		181			(8,223	)
Net deferred tax asset before valuation allowance		1,001,319			953,434
Valuation allowance		(1,004,256	)		(965,987	)
Net deferred tax liability	$	(2,937	)	$	(12,553	)

Tax provision (benefit)

The effect of the change in valuation allowance on the benefit from income taxes was as follows:

	2013			2012			2011
	(In thousands)
Benefit from income taxes	$	(17,239	)	$	(330,740	)	$	(196,835	)
Change in valuation allowance		20,935			329,175			198,428
Provision for (benefit from) income taxes	$	3,696		$	(1,565	)	$	1,593

Components of the provision for (benefit from) income taxes

The following summarizes the components of the provision for (benefit from) income taxes:

	2013		2012			2011
	(In thousands)
Current	$	916	$	(4,251	)	$	598
Deferred		7		90			(945	)
Other		2,773		2,596			1,940
Provision for (benefit from) income taxes	$	3,696	$	(1,565	)	$	1,593

Reconciliation of federal statutory income tax rate

The reconciliation of the federal statutory income tax benefit rate to the effective income tax rate is as follows:

	2013			2012			2011
Federal statutory income tax benefit rate		(35.0	)%		(35.0	)%		(35.0	) %
Valuation allowance		45.4			35.4			41.0
Tax exempt municipal bond interest		(3.7	)		(0.8	)		(5.4	)
Other, net		1.3			0.2			(0.3	)
Effective income tax rate		8.0	%		(0.2	)%		0.3	%

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrecognized tax benefits
	2013		2012			2011
	(In thousands)
Balance at beginning of year	$	104,550	$	110,080		$	109,282
Additions based on tax positions related to the current year		-		-			-
Additions for tax positions of prior years		816		511			798
Reductions for tax positions of prior years		-		(4,041	)		-
Settlements		-		(2,000	)		-
Balance at end of year	$	105,366	$	104,550		$	110,080