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Federal Income Taxes
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Federal Income Taxes
Federal Income Taxes
(a) A reconciliation of federal income tax on income at the corporate rate to the effective tax rate is as follows:
($ in thousands)
 
2013
 
2012
 
2011
Tax at statutory rate of 35%
 
$
50,331

 
13,172

 
3,990

Tax-advantaged interest
 
(12,718
)
 
(13,285
)
 
(14,381
)
Dividends received deduction
 
(1,174
)
 
(1,260
)
 
(870
)
Nonqualified deferred compensation
 
(425
)
 
(262
)
 
7

Amortization of intangible assets
 
(101
)
 
687

 
—

Other
 
474

 
620

 
(29
)
Federal income tax expense (benefit) from continuing operations
 
$
36,387

 
(328
)
 
(11,283
)

 
(b) The tax effects of the significant temporary differences that give rise to deferred tax assets and liabilities are as follows:
($ in thousands)
 
2013
 
2012
Deferred tax assets:
 
 

 
 

Net loss reserve discounting
 
$
87,967

 
97,561

Net unearned premiums
 
64,167

 
58,981

Employee benefits
 
19,912

 
39,752

Long-term incentive compensation plans
 
12,904

 
10,078

Temporary investment write-downs
 
7,586

 
8,236

Net operating loss
 
2,818

 
12,120

Tax credits
 
17,042

 
14,150

Other
 
10,088

 
9,056

Total deferred tax assets
 
222,484

 
249,934

Deferred tax liabilities:
 
 

 
 

Deferred policy acquisition costs
 
59,164

 
53,187

Unrealized gains on investment securities
 
31,345

 
67,501

Other investment-related items, net
 
618

 
2,488

Accelerated depreciation and amortization
 
8,744

 
7,622

Total deferred tax liabilities
 
99,871

 
130,798

Net deferred federal income tax asset
 
$
122,613

 
119,136


 
After considering all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, we believe it is more likely than not that the existing deductible temporary differences will reverse during periods in which we generate net federal taxable income or have adequate federal carryback availability. As a result, we have no valuation allowance recognized for federal deferred tax assets at December 31, 2013 or 2012. The carryforward availability of our net operating loss will begin to expire in 2029 with the remainder expiring through 2031. Our alternative minimum tax credits, which are available to offset future regular taxable income, can be carried forward for an unlimited period of time.
 
Stockholders' equity reflects tax benefits related to compensation expense deductions for share-based compensation awards of $19.2 million at December 31, 2013, $17.7 million at December 31, 2012, and $16.6 million at December 31, 2011.
 
We have analyzed our tax positions in all open tax years, which as of December 31, 2013 were 2007 through 2012. The Internal Revenue Service (“IRS”) recently completed a limited scope examination of the 2007 through 2010 tax years, which resulted in no material changes. We do not have unrecognized tax expense or benefit as of December 31, 2013.

In addition, we believe our tax positions will more likely than not be sustained upon examination, including related appeals or litigation. In the event we had a tax position that did not meet the more likely than not criteria, any tax, interest, and penalties incurred related to such a position would be reflected in "Total federal income tax expense (benefit)" on our Consolidated Statements of Income.