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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Income tax expense which is generated in the U.S. consists of the following components for the years ended December 31:

(In thousands)						2022						2021						2020
Current						$	98,666					$	56,509					$	38,402
Deferred						58,168						84,022						38,653
Total income tax expense						$	156,834					$	140,531					$	77,055

Schedule of Reconciliation of Difference between Income Tax Expense and Expected Tax Provision at Weighted Average Tax Rate

The reconciliation of the difference between income tax expense and the expected tax provision at the weighted average tax rate was as follows for the years ended December 31:

						2022												2021												2020
($ in thousands)						$						% of pretax income						$						% of pretax income						$						% of pretax income
Tax provision at weighted average statutory rates						$	148,176					15.0		%				$	127,046					15.5		%				$	75,763					15.5		%
State taxes, net of federal benefit						6,306						0.6						11,295						1.4						—						0.0
Non-deductible expenses						4,041						0.4						3,652						0.4						2,482						0.5
Tax exempt interest, net of proration						(1,463)						(0.1)						(1,606)						(0.2)						(1,462)						(0.3)
Excess tax (benefit) deficit from stock-based compensation						75						0.0						61						—						(599)						(0.1)
Other						(301)						0.0						83						0.0						871						0.1
Total income tax expense						$	156,834					15.9		%				$	140,531					17.1		%				$	77,055					15.7		%

Schedule of Net Deferred Tax (Liability) Asset and Components

The net deferred tax liability was comprised of the following at December 31:

(In thousands)						2022						2021
Deferred tax assets						$	91,729					$	29,100
Deferred tax liabilities						(448,539)						(402,754)
Net deferred tax liability						$	(356,810)					$	(373,654)

The components of the net deferred tax liability were as follows at December 31:

(In thousands)						2022						2021
Contingency reserves						$	(432,265)					$	(372,336)
Unrealized (gain) loss on investments						60,439						(14,573)
Unearned premium reserve						14,099						12,539
Investments in limited partnerships						(13,907)						(13,002)
Accrued expenses						6,257						6,076
Unearned ceding commissions						2,363						2,474
Change in fair market value of derivatives						2,377						1,827
Deferred policy acquisition costs						(2,152)						(2,642)
Nonvested shares						1,640						1,841
Start-up expenditures, net						1,233						880
Fixed assets						1,197						836
Impairments on available-for-sale investment securities						1,155						—
Loss reserves						965						2,622
Prepaid expenses						(156)						(123)
Loss reserves - TCJA transition adjustment						(59)						(78)
Organizational expenditures						4						5
Net deferred tax liability						$	(356,810)					$	(373,654)

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- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
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- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
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- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
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