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Federal Income Taxes
 12 Months Ended
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)202120202019
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 compensation2,469 2,246 2,985 
Stock-based compensation(693)(1,846)(3,253)
Other(1,346)(2,150)(255)
Federal income tax expense101,473 56,633 64,767 
Income before federal income tax, less preferred stock dividends495,957 302,988 336,390 
Effective tax rate20.5 %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)20212020
Deferred tax assets:  
Net loss reserve discounting$60,227 54,240 
Net unearned premiums68,086 60,842 
Employee benefits2,787 8,943 
Long-term incentive compensation plans5,904 5,472 
Temporary investment write-downs4,314 6,037 
Other2,245 7,195 
Total deferred tax assets143,563 142,729 
Deferred tax liabilities:  
Deferred policy acquisition costs68,652 60,601 
Unrealized gains on investment securities48,082 81,142 
Other investment-related items, net27,044 14,760 
Accelerated depreciation and amortization13,198 13,322 
Total deferred tax liabilities156,976 169,825 
Net deferred federal income tax liability$(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.