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Federal Income Taxes
 12 Months Ended
Dec. 31, 2022
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)202220212020
Tax at statutory rate $58,839 106,115 63,627 
Tax-advantaged interest(4,087)(4,514)(4,730)
Dividends received deduction(469)(558)(514)
Executive compensation1,848 2,469 2,246 
Stock-based compensation(893)(693)(1,846)
Other62 (1,346)(2,150)
Federal income tax expense55,300 101,473 56,633 
Income before federal income tax, less preferred stock dividends270,986 495,957 302,988 
Effective tax rate20.4 %20.5 %18.7 %

(b) The tax effects of the significant temporary differences that gave rise to deferred tax assets and liabilities were as follows:

($ in thousands)20222021
Deferred tax assets:  
Net loss reserve discounting$65,907 60,227 
Net unearned premiums76,513 68,086 
Employee benefits7,064 2,787 
Long-term incentive compensation6,384 5,904 
Unrealized losses on fixed income securities110,857 — 
Temporary investment write-downs12,480 4,314 
Other9,824 2,245 
Total deferred tax assets289,029 143,563 
Deferred tax liabilities:  
Deferred policy acquisition costs77,411 68,652 
Unrealized gains on investment securities— 48,082 
Other investment-related items, net26,713 27,044 
Accelerated depreciation and amortization12,172 13,198 
Total deferred tax liabilities116,296 156,976 
Net deferred federal income tax assets (liabilities)$172,733 (13,413)
 
The increase in net deferred federal income tax assets was primarily due to an increase in unrealized losses on our investment portfolio resulting from an increase in benchmark U.S. Treasury rates, and to a lesser extent the widening of credit spreads. 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, 2022 or 2021. We did not have unrecognized tax expense or benefit as of December 31, 2022.
We have analyzed our tax positions in all open tax years, which as of December 31, 2022 were 2019 through 2022. 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.