Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Significant components of deferred tax assets and liabilities

Significant components of the Company's deferred tax assets and liabilities as of December 31 are as follows:

	2015			2014
Deferred tax liabilities:
Unrealized gain on fixed income and equity security investments	$	20,959		$	27,914
Deferred acquisition costs		877			1,341
Loss and loss expense reserves		2,305			2,373
Limited partnership investments		1,771			4,636
Accelerated depreciation		897			601
Other		1,024			628
Total deferred tax liabilities		27,833			37,493

Deferred tax assets:
Loss and loss expense reserves		9,349			10,973
Unearned premiums discount		1,593			2,201
Other-than-temporary investment declines		3,437			2,049
Deferred compensation		1,699			1,565
Deferred ceding commission		371			549
Other		186			183
Total deferred tax assets		16,635			17,520

Net deferred tax liabilities	$	(11,198	)	$	(19,973	)

Summary of the difference between federal income taxes expense computed at the statutory rate

A summary of the difference between federal income tax expense computed at the statutory rate and that reported in the consolidated financial statements is as follows:

	2015			2014			2013

Statutory federal income rate applied to pretax income	$	11,883		$	15,539		$	19,218
Tax effect of (deduction):
Tax-exempt investment income		(919	)		(924	)		(811	)
Other		(295	)		66			(85	)
Federal income tax expense	$	10,669		$	14,681		$	18,322

Federal income tax expense

Federal income tax expense consists of the following:

	2015			2014		2013
Taxes (benefit) on pre-tax income:
Current	$	12,488		$	13,041	$	17,383
Deferred		(1,819	)		1,640		939
	$	10,669		$	14,681	$	18,322

Components of provisions for deferred federal income taxes (credits)

The components of the provision for deferred federal income taxes are as follows:

	2015			2014			2013
Limited partnerships	$	(2,865	)	$	2,025		$	1,058
Discounts of loss and loss expense reserves		1,526			113			313
Unearned premium discount		608			(38	)		(65	)
Deferred compensation		(127	)		(685	)		(146	)
Other-than-temporary investment declines		(1,416	)		(19	)		680
Deferred acquisitions costs and ceding commission		(287	)		(20	)		(271	)
Other		742			264			(630	)
Provision for deferred federal income tax	$	(1,819	)	$	1,640		$	939