Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Significant components of deferred tax assets and liabilities

Deferred income taxes are calculated to account for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities as of December 31 are as follows:

	2016			2015
Deferred tax liabilities:
Unrealized gain on fixed income and equity security investments	$	18,335		$	20,959
Deferred acquisition costs		874			877
Loss and loss expense reserves		1,198			2,305
Limited partnership investments		2,274			1,771
Accelerated depreciation		1,037			897
Other		1,251			1,024
Total deferred tax liabilities		24,969			27,833

Deferred tax assets:
Loss and loss expense reserves		9,467			9,349
Unearned premiums discount		1,295			1,593
Other-than-temporary investment declines		858			3,437
Deferred compensation		1,097			1,699
Deferred ceding commission		464			371
Other		376			186
Total deferred tax assets		13,557			16,635

Net deferred tax liabilities	$	(11,412	)	$	(11,198	)

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:

	2016			2015			2014

Statutory federal income rate applied to pretax income	$	15,069		$	11,883		$	15,539
Tax effect of (deduction):
Tax-exempt investment income		(938	)		(919	)		(924	)
Other		(22	)		(295	)		66
Federal income tax expense	$	14,109		$	10,669		$	14,681

Federal income tax expense

Federal income tax expense consists of the following:
	2016			2015				2014
Taxes (benefit) on pre-tax income:
Current		$	11,271		$	12,488			$	13,041
Deferred			2,838			(1,819	)			1,640
		$	14,109		$	10,669			$	14,681

Components of provisions for deferred federal income taxes (credits)

	2016			2015			2014
Limited partnerships	$	503		$	(2,865	)	$	2,025
Discounts of loss and loss expense reserves		(114	)		1,526			113
Reserves - salvage and subrogation and other		(1,110	)		29			(280	)
Unearned premium discount		298			608			(38	)
Deferred compensation		595			(127	)		(685	)
Other-than-temporary investment declines		2,320			(1,416	)		(19	)
Deferred acquisitions costs and ceding commission		(95	)		(287	)		(20	)
Other		441			713			544
Provision for deferred federal income tax	$	2,838		$	(1,819	)	$	1,640