Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Effective Income Tax Reconciliation

A reconciliation of the effective tax rate to the statutory federal tax rate is shown below (in thousands, except percentages):

	Years ended December 31,
	2019					2018					2017
	Amount			Rate		Amount			Rate		Amount			Rate
Income tax expense before tax on equity in earnings of unconsolidated affiliates	$	145,819		18.3	%	$	29,643		18.2	%	$	114,921		27.7	%
Tax on equity in earnings of unconsolidated affiliates	21,735			2.7		4,469			2.8		30,336			7.3
Total expected income tax expense at the statutory rate	167,554			21.0		34,112			21.0		145,257			35.0
Tax-exempt investment income	(3,969		)	(0.5	)	(3,323		)	(2.0	)	(6,887		)	(1.7	)
Deferred tax change	(519		)	(0.1	)	(4,354		)	(2.7	)	(217,622		)	(52.4	)
Dividend exclusion	(3,628		)	(0.5	)	(4,080		)	(2.5	)	(8,701		)	(2.1	)
Miscellaneous tax credits, net	(7,090		)	(0.9	)	(7,802		)	(4.8	)	(9,524		)	(2.3	)
Low income housing tax credit expense	6,394			0.8		6,231			3.8		5,263			1.3
Change in valuation allowance	383			—		2,700			1.7		—			—
Tax accrual adjustment	5,350			0.7		(2,893		)	(1.8	)	—			—
Return to provision	1,007			0.1		(20,301		)	(12.5	)	—			—
Other items, net	(65		)	(0.1	)	1,155			0.6		1,905			0.5
Provision for federal income tax before interest expense	165,417			20.5		1,445			0.8		(90,309		)	(21.7	)
Interest benefit	—			—		—			—		(2,686		)	(0.6	)
Total	$	165,417		20.5	%	$	1,445		0.8	%	$	(92,995	)	(22.3	)%

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to the deferred tax assets and liabilities are shown below (in thousands):

	December 31,
	2019			2018
DEFERRED TAX ASSETS
Invested assets, principally due to impairment losses	$	16,760		$	18,148
Investment in real estate and other invested assets, principally due to investment valuation allowances	9,680			8,424
Policyholder funds, principally due to policy reserve discount	76,506			91,362
Policyholder funds, principally due to unearned premium reserve	25,726			24,586
Participating policyholders’ surplus	41,533			32,785
Pension	—			3,598
Commissions and other expenses	3,495			3,108
Other assets	11,291			9,756
Tax carryforwards	2,344			138
Gross deferred tax assets before valuation allowance	187,335			191,905
Valuation allowance	(3,083		)	(2,700		)
Gross deferred tax assets after valuation allowance	184,252			189,205
DEFERRED TAX LIABILITIES
Marketable securities, principally due to net unrealized gains	278,144			161,256
Investment in bonds, principally due to differences between GAAP and tax basis	15,004			13,088
Deferred policy acquisition costs, due to difference between GAAP and tax amortization methods	218,795			240,731
Property, plant and equipment, principally due to difference between GAAP and tax depreciation methods	20,812			22,204
Pension	1,833			—
Other liabilities	44,192			16,111
Gross deferred tax liabilities	578,780			453,390
Total net deferred tax liability	$	394,528		$	264,185