Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The provision for income taxes consists of the following for the years ended December 31:


(in thousands)
	2025		2024		2023
Federal
Current income tax expense	$	131,645	$	152,926	$	116,874
Deferred income tax expense (benefit)	19,547		4,026		(1,002)
State
Current income tax expense	76		13		3
Deferred income tax expense	—		—		—
Income tax expense	$	151,268	$	156,965	$	115,875

Schedule of Reconciliation of the Provision for Income Taxes

A reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rate to pre-tax income, is as follows for the years ended December 31:


(dollars in thousands)
	2025				2024				2023
	Amount		%		Amount		%		Amount		%
U.S. federal tax at statutory rate	$	149,227	21.0	%	$	159,029	21.0	%	$	118,007	21.0	%
State and local income taxes, net of federal income tax effect (1)	60		0.0		10		0.0		2		0.0


Tax credits	(1,432)		(0.2)		(2,000)		(0.3)		(1,300)		(0.2)

Nontaxable or nondeductible items	2,703		0.4		569		0.1		651		0.1

Other adjustments	710		0.1		(643)		(0.1)		(1,485)		(0.3)
Income tax provision	$	151,268	21.3	%	$	156,965	20.7	%	$	115,875	20.6	%

(1) State taxes in Pennsylvania made up the majority (greater than 50 percent) of the tax effect in this category.

Schedule of Deferred Tax Assets and Liabilities

Temporary differences and carry-forwards, which give rise to deferred tax assets and liabilities, are as follows as of December 31:


(in thousands)
	2025		2024
Deferred tax assets:
Other employee benefits	$	18,213	$	18,409
Allowance for management fee returned on cancelled policies	7,322		4,647
Charitable contributions	5,221		—
Deferred revenue	4,457		4,181


Current expected credit loss allowance	3,647		2,966
Unrealized losses on investments	—		3,827
Other	4,958		4,617
Total deferred tax assets	43,818		38,647
Deferred tax liabilities:
Depreciation	47,017		27,089
Pension and other postretirement benefits	13,919		12,276
Unrealized gains on investments	2,532		—
Prepaid expenses	1,506		2,013







Other	3,632		3,687
Total deferred tax liabilities	68,606		45,065
Net deferred tax liability	$	(24,788)	$	(6,418)