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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We file consolidated federal income tax returns that include all of our wholly-owned subsidiaries. Our income tax expense as presented in the consolidated financial statements is summarized as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (Dollars in thousands)
Consolidated statements of operations: |  |  |  |  |
Current income taxes | $ | 16,998 |  |  | $ | 20,209 |  |  | $ | 332 |
Deferred income taxes | 68,135 |  |  | 490,926 |  |  | 149,431 |
Total income tax expense included in consolidated statements of operations | 85,133 |  |  | 511,135 |  |  | 149,763 |
Stockholders' equity: |  |  |  |  |
Expense (benefit) relating to: |  |  |  |  |
Changes in other comprehensive income | 203,640 |  |  | (1,843,635) |  |  | 207,353 |
Total income tax expense included in consolidated financial statements | $ | 288,773 |  |  | $ | (1,332,500) |  |  | $ | 357,116 |
Income tax expense in the consolidated statements of operations differed from the amount computed at the applicable statutory federal income tax rates of 21% for the years ended December 31, 2023, 2022, and 2021 as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (Dollars in thousands)
Income before income taxes | $ | 297,052 |  |  | $ | 2,431,712 |  |  | $ | 702,786 |
Income tax expense on income before income taxes | $ | 62,381 |  |  | $ | 510,660 |  |  | $ | 147,585 |
Tax effect of: |  |  |  |  |
State income taxes | 2,570 |  |  | 2,564 |  |  | 5,239 |
Tax exempt net investment income | (632) |  |  | (4,065) |  |  | (4,715) |
Non-deductible compensation | 20,393 |  |  | 1,182 |  |  | 1,062 |
Other | 421 |  |  | 794 |  |  | 592 |
Income tax expense | $ | 85,133 |  |  | $ | 511,135 |  |  | $ | 149,763 |
Effective tax rate | 28.7 | % |  | 21.0 | % |  | 21.3 | %
Deferred income tax assets or liabilities are established for temporary differences between the financial reporting amounts and tax bases of assets and liabilities that will result in deductible or taxable amounts, respectively, in future years. The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2023 and 2022, are as follows:
| December 31,
| 2023 |  | 2022
| (Dollars in thousands)
Deferred income tax assets: |  |  |
Net unrealized losses on available for sale fixed maturity securities | $ | 788,236 |  |  | $ | 1,063,441 |
Investment income items | 425,940 |  |  | — |
Amounts due reinsurer | 1,208,471 |  |  | 1,030,759 |
Other policyholder funds | — |  |  | 358 |
Deferred compensation | 1,521 |  |  | 3,866 |
Share-based compensation | 2,828 |  |  | 422 |
Net operating loss carryforwards | 106,502 |  |  | 50,913 |
Capital loss carryforwards | 38,916 |  |  | — |
Other | 15,835 |  |  | 71,417 |
Gross deferred tax assets | 2,588,249 |  |  | 2,221,176 |
Deferred income tax liabilities: |  |  |
Deferred policy acquisition costs and deferred sales inducements | (1,095,569) |  |  | (976,103) |
Derivative instruments | (217,220) |  |  | (145,785) |
Policy benefit reserves | (1,114,394) |  |  | (612,454) |
Investment income items | — |  |  | (28,778) |
Other | (8,414) |  |  | (19,622) |
Gross deferred tax liabilities | (2,435,597) |  |  | (1,782,742) |
Net deferred income tax asset | $ | 152,652 |  |  | $ | 438,434 |
Included in deferred income taxes is the expected income tax benefit attributable to unrealized losses on available for sale fixed maturity securities. There is no valuation allowance provided for the deferred income tax asset attributable to unrealized losses on available for sale fixed maturity securities. We have the intent and ability to hold these securities to maturity or recovery of value, whichever is sooner. Realization of our deferred income tax assets is more likely than not based on expectations as to our future taxable income and considering all other available evidence, both positive and negative. Therefore, no valuation allowance against deferred income tax assets has been established as of December 31, 2023 and 2022. There were no material income tax contingencies requiring recognition in our consolidated financial statements as of December 31, 2023. Our tax returns are subject to audit by various federal, state and local tax authorities. The Company's income tax returns are subject to examination by the IRS and state tax authorities, generally for three years after they are due or filed, whichever is later. Tax years ended before December 31, 2019 are no longer open to examination by the IRS. At December 31, 2023 and 2022, we had federal net operating losses of $506.8 million and $170.5 million, respectively, primarily related to a reinsurance transaction that occurred in 2023. The federal net operating losses are carried forward indefinitely. Additionally, at December 31, 2023 and 2022, we had $185.3 million and $45.7 million, respectively, of capital loss carryforwards for federal income tax purposes that can be carried forward for five years.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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