Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:

	2019			2018
Deferred tax liabilities:
Unrealized gain on fixed income and equity security investments	$	5,327		$	4,572
Deferred acquisition costs		2,821			2,552
Loss and loss expense reserves		2,701			3,583
Limited partnership investments		2,587			–
Accelerated depreciation		687			690
Other		1,361			1,509
Total deferred tax liabilities		15,484			12,906
Deferred tax assets:
Loss and loss expense reserves		11,460			9,999
Limited partnership investments		–			3,498
Unearned premiums discount		2,529			2,321
Other-than-temporary investment declines		39			625
Deferred compensation		1,181			580
Deferred ceding commission		1,037			1,173
Other		1,273			972
Total deferred tax assets		17,519			19,168
Net deferred tax assets	$	(2,035	)	$	(6,262	)

Difference between Federal Income Taxes Expense (Benefit) Computed at Statutory Rate

A summary of the difference between federal income tax expense (benefit) computed at the statutory rate and that reported in the consolidated financial statements as of December 31, 2019, 2018 and 2017 is as follows:

	2019			2018			2017
Statutory federal income rate applied to pre-tax income (loss)	$	1,821		$	(9,213	)	$	3,543
Tax effect of (deduction):
Tax-exempt investment income		(402	)		(253	)		(968	)
Change in enacted tax rates		–			–			(9,572	)
Other		(93	)		(331	)		(1,204	)
Federal income tax expense (benefit)	$	1,326		$	(9,797	)	$	(8,201	)

Federal Income Tax Expense (Benefit)

Federal income tax expense (benefit) as of December 31, 2019, 2018 and 2017 consists of the following:

	2019			2018			2017
Tax expense (benefit) on pre-tax income (loss):
Current	$	1,377		$	8,997		$	(4,335	)
Deferred		(51	)		(18,794	)		(3,866	)
	$	1,326		$	(9,797	)	$	(8,201	)

Provision for Deferred Federal Income Tax

The provision for deferred federal income taxes as of December 31, 2019, 2018 and 2017 consists of the following:

	2019			2018			2017
Limited partnerships	$	1,143		$	(2,383	)	$	4,099
Discounts of loss and loss expense reserves		(2,269	)		(2,704	)		1,315
Reserves - salvage and subrogation and other		(74	)		427			56
Unearned premium discount		(208	)		(484	)		(1,767	)
Deferred compensation		(600	)		305			(168	)
Other-than-temporary investment declines		(411	)		695			(127	)
Deferred acquisitions costs and ceding commission		405			201			1,553
Change in enacted tax rates		–			–			(9,572	)
Unrealized gains / losses		1,837			(13,876	)		–
Other		126			(975	)		745
Provision for deferred federal income taxes	$	(51	)	$	(18,794	)	$	(3,866	)