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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] |
Components Of Income Tax Expense | The income tax expense (benefit) consisted of the following components:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
| (Amounts in thousands)
Federal |  |  |  |  |
Current | $ | 14,190 |  |  | $ | 10,898 |  |  | $ | 17,444 |
Deferred | (39,244 | ) |  | 10,934 |  |  | (21,947 | )
| $ | (25,054 | ) |  | $ | 21,832 |  |  | $ | (4,503 | )
State |  |  |  |  |
Current | $ | 1,982 |  |  | $ | 955 |  |  | $ | 2,239 |
Deferred | (1,815 | ) |  | (579 | ) |  | (56 | )
| $ | 167 |  |  | $ | 376 |  |  | $ | 2,183 |
Total |  |  |  |  |
Current | $ | 16,172 |  |  | $ | 11,853 |  |  | $ | 19,683 |
Deferred | (41,059 | ) |  | 10,355 |  |  | (22,003 | )
Total | $ | (24,887 | ) |  | $ | 22,208 |  |  | $ | (2,320 | )
Reconciliation Of Income Taxes | Additionally in 2018, as a result of a determination made by the Office of Management and Budget, the Company reversed the previously recorded provisional 6.6% sequestration reduction to its alternative minimum tax (“AMT”) credit that originally resulted from repeal of the corporate AMT and reclassification of AMT credit carryforwards to current taxes receivable as a refundable credit. In computing taxable income, property and casualty insurers reduce underwriting income by losses and loss adjustment expenses incurred. The amount of the deduction for losses incurred associated with unpaid losses is discounted at the interest rates and for the loss payment patterns prescribed by the U.S. Treasury. The Act changes the prescribed interest rates to rates based on corporate bond yield curves and extends the applicable time periods for the loss payment pattern. These changes are effective for tax years beginning after 2017 and are subject to a transition rule that spreads the additional tax payments from the amount determined by applying these changes versus the previous calculated amount over the subsequent eight years beginning in 2018. The changes included in the Act related to discounting of unpaid losses are broad and complex. The Securities Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Act to finalize the recording of the related tax impacts. The Company recorded a total deferred tax liability adjustment of approximately $8.6 million at December 31, 2018 related to the changes in discounting of unpaid losses included in the Act based on the guidance published in 2018 by the Internal Revenue Service. The following table presents a reconciliation of the tax expense (benefit) based on the statutory rate to the Company's actual tax expense (benefit) in the consolidated statements of operations:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
| (Amounts in thousands)
Computed tax (benefit) expense at 21% for 2018 and 35% for 2017 and 2016 | $ | (6,429 | ) |  | $ | 58,480 |  |  | $ | 24,753 |
Tax-exempt interest income | (13,507 | ) |  | (26,038 | ) |  | (26,197 | )
Dividends received deduction | (1,082 | ) |  | (2,296 | ) |  | (2,303 | )
State tax expense | 439 |  |  | 158 |  |  | 1,907 |
Nondeductible expenses | 390 |  |  | 348 |  |  | 303 |
Cumulative impact from change in tax rate | — |  |  | (11,449 | ) |  | — |
(Reversal in 2018) reduction of AMT credit carryforward due to sequestration in 2017 | (4,088 | ) |  | 4,088 |  |  | — |
Other, net | (610 | ) |  | (1,083 | ) |  | (783 | )
Income tax (benefit) expense | $ | (24,887 | ) |  | $ | 22,208 |  |  | $ | (2,320 | )
Deferred Tax Assets And Liabilities | The following table presents the significant components of the Company’s net deferred tax assets and liabilities:
| December 31,
| 2018 |  | 2017
| (Amounts in thousands)
Deferred tax assets: |  |  |
20% of net unearned premiums | $ | 52,644 |  |  | $ | 47,110 |
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes | 9,245 |  |  | 6,451 |
Write-down of impaired investments | 356 |  |  | 387 |
Tax credit carryforwards | — |  |  | 230 |
Expense accruals | 7,019 |  |  | 6,192 |
Tax asset on net unrealized loss on securities carried at fair value | 1,055 |  |  | — |
Other deferred tax assets | 3,257 |  |  | 3,174 |
Total gross deferred tax assets | 73,576 |  |  | 63,544 |
Deferred tax liabilities: |  |  |
Deferred policy acquisition costs | (45,178 | ) |  | (41,612 | )
Tax liability on net unrealized gain on securities carried at fair value | — |  |  | (27,574 | )
Tax depreciation in excess of book depreciation | (4,594 | ) |  | (5,686 | )
Undistributed earnings of insurance subsidiaries | (3,017 | ) |  | (3,907 | )
Tax amortization in excess of book amortization | (2,729 | ) |  | (2,280 | )
Other deferred tax liabilities | (4,719 | ) |  | (5,417 | )
Total gross deferred tax liabilities | (60,237 | ) |  | (86,476 | )
Net deferred tax assets (liabilities) | $ | 13,339 |  |  | $ | (22,932 | )
Summary Of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits:
| December 31,
| 2018 |  | 2017
| (Amounts in thousands)
Balance at January 1 | $ | 9,674 |  |  | $ | 12,954 |
Additions (reductions) based on tax positions related to: |  |  |
Current year | 662 |  |  | 85 |
Prior years | 279 |  |  | (3,365 | )
Balance at December 31 | $ | 10,615 |  |  | $ | 9,674 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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