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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense (benefit) consists of:
(In thousands) | Current Expense |  | Deferred Expense (Benefit) |  | Total
December 31, 2024 |  |  |  |  |
Domestic | $ | 344,210 |  |  | $ | 51,754 |  |  | $ | 395,964 |
Foreign | 69,312 |  |  | 44,640 |  |  | 113,952 |
Total expense | $ | 413,522 |  |  | $ | 96,394 |  |  | $ | 509,916 |
December 31, 2023 |  |  |  |  |
Domestic | $ | 352,891 |  |  | $ | (43,456) |  |  | $ | 309,435 |
Foreign | 44,372 |  |  | 16,750 |  |  | 61,122 |
Total expense (benefit) | $ | 397,263 |  |  | $ | (26,706) |  |  | $ | 370,557 |
December 31, 2022 |  |  |  |  |
Domestic | $ | 295,849 |  |  | $ | (27,544) |  |  | $ | 268,305 |
Foreign | 42,890 |  |  | 23,532 |  |  | 66,422 |
Total expense (benefit) | $ | 338,739 |  |  | $ | (4,012) |  |  | $ | 334,727 |
Income before income taxes from domestic operations was $1,840 million, $1,430 million and $1,240 million for the years ended December 31, 2024, 2023 and 2022, respectively. Income before income taxes from foreign operations was $424 million, $324 million and $480 million for the years ended December 31, 2024, 2023 and 2022, respectively. A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 21% for 2024, 2023 and 2022 to pre-tax income are as follows:
(In thousands) | 2024 |  | 2023 |  | 2022
Computed “expected” tax expense | $ | 475,543 |  |  | $ | 368,425 |  |  | $ | 361,133 |
Tax-exempt investment income | (7,110) |  |  | (8,361) |  |  | (10,815) |
Change in valuation allowance | (220) |  |  | (10,883) |  |  | (28,064) |
Impact of foreign operations and related tax rates | 19,317 |  |  | (1,896) |  |  | (3,444) |
State and local taxes, net of federal benefit | 12,329 |  |  | 12,271 |  |  | 8,976 |
Other, net | 10,057 |  |  | 11,001 |  |  | 6,941 |
Total expense | $ | 509,916 |  |  | $ | 370,557 |  |  | $ | 334,727 |
At December 31, 2024 and 2023, the tax effects of differences that give rise to significant portions of the deferred tax asset and deferred tax liability are as follows:
(In thousands) | 2024 |  | 2023
Deferred tax asset: |  |  |
Loss reserve discounting | $ | 218,222 |  |  | $ | 230,956 |
Unearned premiums | 216,721 |  |  | 200,938 |
Unrealized investment losses | 58,701 |  |  | 126,693 |
Net operating losses & foreign tax credits | 62,159 |  |  | 59,154 |
Other-than-temporary impairments | 7,149 |  |  | 12,691 |
Employee compensation plans | 70,529 |  |  | 68,062 |
Other | 81,915 |  |  | 78,025 |
Gross deferred tax asset | 715,396 |  |  | 776,519 |
Less valuation allowance | (36,063) |  |  | (36,283) |
Deferred tax asset | 679,333 |  |  | 740,236 |
Deferred tax liability: |  |  |
Amortization of intangibles | 15,124 |  |  | 15,205 |
Loss reserve discounting - transition rule | 4,944 |  |  | 9,894 |
Deferred policy acquisition costs | 195,150 |  |  | 176,281 |
Property, furniture and equipment | 45,276 |  |  | 43,501 |
Investment funds | 184,899 |  |  | 161,867 |
Other | 78,874 |  |  | 66,525 |
Deferred tax liability | 524,267 |  |  | 473,273 |
Net deferred tax asset | $ | 155,066 |  |  | $ | 266,963 |
The Company had a net current tax payable of $14 million and $46 million at December 31, 2024 and 2023, respectively. At December 31, 2024, the Company had foreign net operating loss carryforwards of $196 million that have no expiration date. At both December 31, 2024 and 2023, the Company had a valuation allowance of $36 million. The Company has provided a valuation allowance against the utilization of $13 million of foreign tax credits and the future net operating loss carryforward benefits of $23 million for certain foreign operations. The statute of limitations for the Company’s U.S. Federal income tax returns has closed for all years through December 31, 2020. The realization of the deferred tax asset is dependent upon the Company’s ability to generate sufficient taxable income in future periods. Based on historical results and the prospects for future current operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset. The Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $481 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. In the future, if such earnings were distributed the Company projects that the incremental tax, if any, will be immaterial.

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