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Federal Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Federal Income Taxes | Federal Income Taxes (a) A reconciliation of federal income tax on income at the corporate rate (21.0%) to the effective tax rate is as follows:
($ in thousands) |  | 2021 |  | 2020 |  | 2019
Tax at statutory rate |  | $ | 106,115 |  |  | 63,627 |  |  | 70,642 |
Tax-advantaged interest |  | (4,514) |  |  | (4,730) |  |  | (4,909) |
Dividends received deduction |  | (558) |  |  | (514) |  |  | (443) |
Executive compensation |  | 2,469 |  |  | 2,246 |  |  | 2,985 |
Stock-based compensation |  | (693) |  |  | (1,846) |  |  | (3,253) |
Other |  | (1,346) |  |  | (2,150) |  |  | (255) |
Federal income tax expense |  | 101,473 |  |  | 56,633 |  |  | 64,767 |
Income before federal income tax, less preferred stock dividends |  | 495,957 |  |  | 302,988 |  |  | 336,390 |
Effective tax rate |  | 20.5 | % |  | 18.7 | % |  | 19.3 | %
(b) The tax effects of the significant temporary differences that gave rise to deferred tax assets and liabilities were as follows:
($ in thousands) |  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Net loss reserve discounting |  | $ | 60,227 |  |  | 54,240 |
Net unearned premiums |  | 68,086 |  |  | 60,842 |
Employee benefits |  | 2,787 |  |  | 8,943 |
Long-term incentive compensation plans |  | 5,904 |  |  | 5,472 |
Temporary investment write-downs |  | 4,314 |  |  | 6,037 |
Other |  | 2,245 |  |  | 7,195 |
Total deferred tax assets |  | 143,563 |  |  | 142,729 |
Deferred tax liabilities: |  |  |  |
Deferred policy acquisition costs |  | 68,652 |  |  | 60,601 |
Unrealized gains on investment securities |  | 48,082 |  |  | 81,142 |
Other investment-related items, net |  | 27,044 |  |  | 14,760 |
Accelerated depreciation and amortization |  | 13,198 |  |  | 13,322 |
Total deferred tax liabilities |  | 156,976 |  |  | 169,825 |
Net deferred federal income tax liability |  | $ | (13,413) |  |  | (27,096) |
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 had no valuation allowance recognized for federal deferred tax assets at December 31, 2021 or 2020. We did not have unrecognized tax expense or benefit as of December 31, 2021. We have analyzed our tax positions in all open tax years, which as of December 31, 2021 were 2018 through 2021. The 2018 tax year audit was completed in 2021 with no material changes. 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" on our Consolidated Statements of Income.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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