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Federal Income Taxes
 12 Months Ended
Dec. 31, 2024
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)202420232022
Tax at statutory rate $54,187 96,267 58,839 
Tax-advantaged interest(1,332)(2,229)(4,087)
Dividends received deduction(214)(273)(469)
Executive compensation2,452 1,989 1,848 
Stock-based compensation(1,482)(1,804)(893)
Other(2,589)(776)62 
Federal income tax expense
51,022 93,174 55,300 
Income before federal income tax, less preferred stock dividends248,834 449,212 270,986 
Effective tax rate20.5 %20.7 %20.4 %

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

($ in thousands)20242023
Deferred tax assets:  
Net loss reserve discounting$89,653 73,175 
Net unearned premiums100,053 89,413 
Employee benefits13,226 13,777 
Long-term incentive compensation7,106 6,736 
Unrealized losses on fixed income securities66,525 74,183 
Temporary investment write-downs7,987 7,560 
Other5,751 8,080 
Total deferred tax assets290,301 272,924 
Deferred tax liabilities:  
Deferred policy acquisition costs100,654 89,221 
Other investment-related items, net34,951 33,309 
Accelerated depreciation and amortization7,908 10,157 
Total deferred tax liabilities143,513 132,687 
Net deferred federal income tax assets (liabilities)$146,788 140,237 
 
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, federal taxable income, liquidity, and prudent and reasonable tax planning strategies, 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, 2024 or 2023. We did not have unrecognized tax expense or benefit as of December 31, 2024.
We have analyzed our tax positions in all open tax years, which as of December 31, 2024 were 2021 through 2024. 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.