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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Summary of income tax assets and liabilities | The income tax assets and liabilities included in Other assets and Other liabilities, respectively, in the Consolidated Balance Sheets were as follows:
($ in thousands) |  | December 31,
|  | 2020 |  | 2019
Income tax (asset) liability |  |  |  |
Current |  | $ | (12,631) |  |  | $ | (12,184) |
Deferred |  | 206,650 |  |  | 160,624 |
Summary of deferred tax assets and liabilities | The "temporary differences" that gave rise to the deferred tax balances were as follows:
($ in thousands) |  | December 31,
|  | 2020 |  | 2019
Deferred tax assets |  |  |  |
Unearned premium reserve reduction |  | $ | 11,488 |  |  | $ | 12,103 |
Compensation accruals |  | 9,487 |  |  | 8,866 |
Reinsurance commissions |  | — |  |  | 6,804 |
Impaired securities |  | 2,127 |  |  | 1,245 |
Other comprehensive income - net funded status of benefit plans |  | 2,981 |  |  | 2,875 |
Discounting of unpaid claims and claim expense tax reserves |  | 2,548 |  |  | 2,530 |
Net operating loss carryforwards |  | — |  |  | 3,803 |
Postretirement benefits other than pensions |  | 270 |  |  | 285 |
Total gross deferred tax assets |  | 28,901 |  |  | 38,511 |
Deferred tax liabilities |  |  |  |
Other comprehensive income - net unrealized gains on securities |  | 124,715 |  |  | 74,645 |
Deferred policy acquisition costs |  | 36,347 |  |  | 49,326 |
Life insurance future policy benefit reserve |  | 26,725 |  |  | 38,210 |
Life insurance future policy benefit reserve (transitional rule) |  | 10,651 |  |  | 12,786 |
Discounting of unpaid claims and claim expense tax reserves (transitional rule) |  | 789 |  |  | 947 |
Investment related adjustments |  | 34,155 |  |  | 15,718 |
Intangibles |  | 210 |  |  | 2,021 |
Other, net |  | 1,959 |  |  | 5,482 |
Total gross deferred tax liabilities |  | 235,551 |  |  | 199,135 |
Net deferred tax liability |  | $ | 206,650 |  |  | $ | 160,624 |
Income taxes expenses | The components of the provision for income tax expense (benefit) were as follows:
($ in thousands) |  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Current |  | $ | 16,880 |  |  | $ | 31,518 |  |  | $ | 4,152 |
Deferred |  | 9,388 |  |  | 20,488 |  |  | (2,958) |
Total income tax expense |  | $ | 26,268 |  |  | $ | 52,006 |  |  | $ | 1,194 |
Income taxes expenses reconciliation | Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 21% for 2020, 2019 and 2018 to income before income taxes as follows:
($ in thousands) |  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Expected federal tax on income |  | $ | 33,512 |  |  | $ | 49,654 |  |  | $ | 4,103 |
Add (deduct) tax effects of: |  |  |  |  |  |
Tax-exempt interest |  | (4,203) |  |  | (4,159) |  |  | (3,726) |
Dividend received deduction |  | (1,475) |  |  | (1,392) |  |  | (412) |
Goodwill impairment |  | 187 |  |  | 5,885 |  |  | — |
CARES Act net operating loss carryback |  | (2,792) |  |  | — |  |  | — |
Employee share-based compensation |  | (541) |  |  | 272 |  |  | (1,134) |
Compensation deduction limitation |  | 663 |  |  | 680 |  |  | 1,754 |
Prior year adjustments |  | (219) |  |  | (716) |  |  | 300 |
Other, net |  | 1,136 |  |  | 1,782 |  |  | 309 |
Income tax expense provided on income |  | $ | 26,268 |  |  | $ | 52,006 |  |  | $ | 1,194 |
Unrecognized tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:
($ in thousands) |  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Balance as of the beginning of the year |  | $ | 1,966 |  |  | $ | 1,734 |  |  | $ | 1,790 |
Increases related to prior year tax positions |  | 205 |  |  | 109 |  |  | — |
Decreases related to prior year tax positions |  | — |  |  | — |  |  | (152) |
Increases related to current year tax positions |  | 151 |  |  | 123 |  |  | 96 |
Settlements |  | — |  |  | — |  |  | — |
Lapse of statute |  | — |  |  | — |  |  | — |
Balance as of the end of the year |  | $ | 2,322 |  |  | $ | 1,966 |  |  | $ | 1,734 |

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