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Investments (Tables) | 9 Months Ended
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Sep. 30, 2016
Schedule of Investments Debt and Equity Securities [Line Items] |
Schedule of Available-for-sale Securities Reconciliation | The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow:
|  | September 30, 2016 |
|  | Cost or amortized cost |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Fair value |
|  | (In thousands) |
Securities available-for-sale, carried at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies |  | $ | 15,515 |  |  | $ | 547 |  |  | $ | (1 | ) |  | $ | 16,061 |
Foreign government |  |  | 121,993 |  |  |  | 9,843 |  |  |  | (106 | ) |  |  | 131,730 |
States and political subdivisions |  |  | 43,326 |  |  |  | 3,167 |  |  |  | (34 | ) |  |  | 46,459 |
Corporates |  |  | 1,246,969 |  |  |  | 78,951 |  |  |  | (2,840 | ) |  |  | 1,323,080 |
Residential mortgage-backed securities |  |  | 78,549 |  |  |  | 6,836 |  |  |  | (107 | ) |  |  | 85,278 |
Commercial mortgage-backed securities |  |  | 104,471 |  |  |  | 4,355 |  |  |  | (51 | ) |  |  | 108,775 |
Other asset-backed securities |  |  | 49,524 |  |  |  | 352 |  |  |  | (85 | ) |  |  | 49,791 |
Total fixed-maturity securities(1) |  |  | 1,660,347 |  |  |  | 104,051 |  |  |  | (3,224 | ) |  |  | 1,761,174 |
Equity securities |  |  | 37,966 |  |  |  | 10,147 |  |  |  | (574 | ) |  |  | 47,539 |
Total fixed-maturity and equity securities |  | $ | 1,698,313 |  |  | $ | 114,198 |  |  | $ | (3,798 | ) |  | $ | 1,808,713 |
(1) | Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.
|  | December 31, 2015 |
|  | Cost or amortized cost |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Fair value |
|  | (In thousands) |
Securities available-for-sale, carried at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies |  | $ | 20,233 |  |  | $ | 448 |  |  | $ | (22 | ) |  | $ | 20,659 |
Foreign government |  |  | 114,656 |  |  |  | 7,082 |  |  |  | (1,522 | ) |  |  | 120,216 |
States and political subdivisions |  |  | 38,995 |  |  |  | 2,111 |  |  |  | (541 | ) |  |  | 40,565 |
Corporates |  |  | 1,276,965 |  |  |  | 49,008 |  |  |  | (24,211 | ) |  |  | 1,301,762 |
Residential mortgage-backed securities |  |  | 94,532 |  |  |  | 6,814 |  |  |  | (121 | ) |  |  | 101,225 |
Commercial mortgage-backed securities |  |  | 97,666 |  |  |  | 2,875 |  |  |  | (555 | ) |  |  | 99,986 |
Other asset-backed securities |  |  | 46,996 |  |  |  | 129 |  |  |  | (79 | ) |  |  | 47,046 |
Total fixed-maturity securities(1) |  |  | 1,690,043 |  |  |  | 68,467 |  |  |  | (27,051 | ) |  |  | 1,731,459 |
Equity securities |  |  | 39,969 |  |  |  | 8,252 |  |  |  | (382 | ) |  |  | 47,839 |
Total fixed-maturity and equity securities |  | $ | 1,730,012 |  |  | $ | 76,719 |  |  | $ | (27,433 | ) |  | $ | 1,779,298 |
(1) | Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.
Fixed-maturity Securities Classified by Contractual Maturity Date | The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio at September 30, 2016 follows:
|  | Amortized cost |  |  | Fair value |
|  | (In thousands) |
Due in one year or less |  | $ | 94,127 |  |  | $ | 95,946 |
Due after one year through five years |  |  | 690,909 |  |  |  | 734,979 |
Due after five years through 10 years |  |  | 594,927 |  |  |  | 632,004 |
Due after 10 years |  |  | 47,840 |  |  |  | 54,401 |
|  |  | 1,427,803 |  |  |  | 1,517,330 |
Mortgage-and asset-backed securities |  |  | 232,544 |  |  |  | 243,844 |
Total fixed-maturity securities |  | $ | 1,660,347 |  |  | $ | 1,761,174 |
Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities | The net effect on stockholders’ equity of unrealized gains and losses on available-for-sale investments was as follows:
|  | September 30, 2016 |  |  | December 31, 2015 |
|  | (In thousands) |
Net unrealized investment gains including OTTI: |  |  |  |  |  |  |  |
Fixed-maturity and equity securities |  | $ | 110,400 |  |  | $ | 49,286 |
OTTI |  |  | 103 |  |  |  | 109 |
Net unrealized investment gains excluding OTTI |  |  | 110,503 |  |  |  | 49,395 |
Deferred income taxes |  |  | (38,676 | ) |  |  | (17,288 | )
Net unrealized investment gains excluding OTTI, net of tax |  | $ | 71,827 |  |  | $ | 32,107 |
Net Investment Income | Investment Income. The components of net investment income were as follows:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (In thousands) |
Fixed-maturity securities (available-for-sale) |  | $ | 18,578 |  |  | $ | 18,786 |  |  | $ | 56,204 |  |  | $ | 58,132 |
Fixed-maturity security (held-to-maturity) |  |  | 4,957 |  |  |  | 3,772 |  |  |  | 13,716 |  |  |  | 8,954 |
Equity securities |  |  | 505 |  |  |  | 514 |  |  |  | 1,527 |  |  |  | 1,533 |
Policy loans and other invested assets |  |  | 318 |  |  |  | 354 |  |  |  | 998 |  |  |  | 1,049 |
Cash and cash equivalents |  |  | 148 |  |  |  | 51 |  |  |  | 497 |  |  |  | 141 |
Market return on deposit asset underlying 10% coinsurance agreement |  |  | 1,058 |  |  |  | 220 |  |  |  | 5,443 |  |  |  | 1,776 |
Gross investment income |  |  | 25,564 |  |  |  | 23,697 |  |  |  | 78,385 |  |  |  | 71,585 |
Investment expenses |  |  | (1,208 | ) |  |  | (1,210 | ) |  |  | (3,643 | ) |  |  | (3,667 | )
Investment income net of investment expenses |  |  | 24,356 |  |  |  | 22,487 |  |  |  | 74,742 |  |  |  | 67,918 |
Interest expense on surplus note |  |  | (4,957 | ) |  |  | (3,772 | ) |  |  | (13,716 | ) |  |  | (8,954 | )
Net investment income |  | $ | 19,399 |  |  | $ | 18,715 |  |  | $ | 61,026 |  |  | $ | 58,964 |
Schedule of Net Realized Investment Gains and Losses | The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (In thousands) |
Net realized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross gains from sales |  | $ | 637 |  |  | $ | 1,209 |  |  | $ | 6,322 |  |  | $ | 4,610 |
Gross losses from sales |  |  | (192 | ) |  |  | (26 | ) |  |  | (714 | ) |  |  | (285 | )
Other-than-temporary impairment losses |  |  | (478 | ) |  |  | (1,564 | ) |  |  | (3,308 | ) |  |  | (2,433 | )
Gains (losses) from bifurcated options |  |  | (2 | ) |  |  | 122 |  |  |  | 323 |  |  |  | (269 | )
Net realized investment gains (losses) |  | $ | (35 | ) |  | $ | (259 | ) |  | $ | 2,623 |  |  | $ | 1,623 |
Schedule of Securities in Unrealized Loss Position | The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position:
|  | September 30, 2016 |
|  | Less than 12 months |  |  | 12 months or longer |
|  | Fair value |  |  | Unrealized losses |  |  | Number of securities |  |  | Fair value |  |  | Unrealized losses |  |  | Number of securities |
|  | (Dollars in thousands) |
Fixed-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies |  | $ | 1,729 |  |  | $ | (1 | ) |  |  | 1 |  |  | $ | - |  |  | $ | - |  |  |  | - |
Foreign government |  |  | 3,398 |  |  |  | (19 | ) |  |  | 2 |  |  |  | 3,134 |  |  |  | (87 | ) |  |  | 3 |
States and political subdivisions |  |  | 2,844 |  |  |  | (34 | ) |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | - |
Corporates |  |  | 31,616 |  |  |  | (321 | ) |  |  | 29 |  |  |  | 58,781 |  |  |  | (2,519 | ) |  |  | 65 |
Residential mortgage-backed securities |  |  | 2,451 |  |  |  | (39 | ) |  |  | 5 |  |  |  | 4,515 |  |  |  | (68 | ) |  |  | 8 |
Commercial mortgage-backed securities |  |  | 11,873 |  |  |  | (18 | ) |  |  | 11 |  |  |  | 7,136 |  |  |  | (33 | ) |  |  | 10 |
Other asset-backed securities |  |  | 11,755 |  |  |  | (53 | ) |  |  | 14 |  |  |  | 4,108 |  |  |  | (32 | ) |  |  | 7 |
Total fixed-maturity securities |  |  | 65,666 |  |  |  | (485 | ) |  |  |  |  |  |  | 77,674 |  |  |  | (2,739 | ) |  |  |  |
Equity securities |  |  | 1,752 |  |  |  | (123 | ) |  |  | 11 |  |  |  | 3,500 |  |  |  | (451 | ) |  |  | 9 |
Total fixed-maturity and equity securities |  | $ | 67,418 |  |  | $ | (608 | ) |  |  |  |  |  | $ | 81,174 |  |  | $ | (3,190 | ) |  |  |  |
|  | December 31, 2015 |
|  | Less than 12 months |  |  | 12 months or longer |
|  | Fair value |  |  | Unrealized losses |  |  | Number of securities |  |  | Fair value |  |  | Unrealized losses |  |  | Number of securities |
|  | (Dollars in thousands) |
Fixed-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies |  | $ | 13,651 |  |  | $ | (22 | ) |  |  | 7 |  |  | $ | - |  |  | $ | - |  |  |  | - |
Foreign government |  |  | 23,572 |  |  |  | (829 | ) |  |  | 20 |  |  |  | 2,396 |  |  |  | (693 | ) |  |  | 3 |
States and political subdivisions |  |  | 2,729 |  |  |  | (44 | ) |  |  | 6 |  |  |  | 878 |  |  |  | (497 | ) |  |  | 2 |
Corporates |  |  | 413,131 |  |  |  | (17,481 | ) |  |  | 393 |  |  |  | 34,624 |  |  |  | (6,730 | ) |  |  | 54 |
Residential mortgage-backed securities |  |  | 9,681 |  |  |  | (61 | ) |  |  | 9 |  |  |  | 4,762 |  |  |  | (60 | ) |  |  | 7 |
Commercial mortgage-backed securities |  |  | 56,216 |  |  |  | (493 | ) |  |  | 49 |  |  |  | 3,199 |  |  |  | (62 | ) |  |  | 6 |
Other asset-backed securities |  |  | 26,611 |  |  |  | (77 | ) |  |  | 23 |  |  |  | 260 |  |  |  | (2 | ) |  |  | 2 |
Total fixed-maturity securities |  |  | 545,591 |  |  |  | (19,007 | ) |  |  |  |  |  |  | 46,119 |  |  |  | (8,044 | ) |  |  |  |
Equity securities |  |  | 3,652 |  |  |  | (287 | ) |  |  | 17 |  |  |  | 3,209 |  |  |  | (95 | ) |  |  | 8 |
Total fixed-maturity and equity securities |  | $ | 549,243 |  |  | $ | (19,294 | ) |  |  |  |  |  | $ | 49,328 |  |  | $ | (8,139 | ) |  |  |  |
Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default | The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows:
|  | September 30, 2016 |  |  | December 31, 2015 |
|  | Amortized cost |  |  | Fair value |  |  | Amortized cost |  |  | Fair value |
|  | (In thousands) |
Fixed-maturity securities in default |  | $ | 5 |  |  | $ | 93 |  |  | $ | 138 |  |  | $ | 262 |
Impairment Charges in Earnings on Available-for-sale Securities | Impairment charges recognized in earnings on available-for-sale securities were as follows:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (In thousands) |
Impairments on fixed-maturity securities not in default |  | $ | 466 |  |  | $ | 1,287 |  |  | $ | 3,145 |  |  | $ | 2,075 |
Impairments on fixed-maturity securities in default |  |  | 2 |  |  |  | 2 |  |  |  | 121 |  |  |  | 7 |
Impairments on equity securities |  |  | 10 |  |  |  | 275 |  |  |  | 42 |  |  |  | 351 |
Total impairment charges |  | $ | 478 |  |  | $ | 1,564 |  |  | $ | 3,308 |  |  | $ | 2,433 |
Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities | The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held follows:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (In thousands) |
Cumulative OTTI recognized in net income for securities still held, beginning of period |  | $ | 7,489 |  |  | $ | 7,701 |  |  | $ | 11,856 |  |  | $ | 9,550 |
Additions for OTTI securities where no OTTI were recognized prior to the beginning of the period |  |  | 451 |  |  |  | 336 |  |  |  | 1,682 |  |  |  | 403 |
Additions for OTTI securities where OTTI have been recognized prior to the beginning of the period |  |  | 17 |  |  |  | 953 |  |  |  | 1,584 |  |  |  | 1,679 |
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities |  |  | (640 | ) |  |  | (138 | ) |  |  | (6,134 | ) |  |  | (1,503 | )
Reductions for exchanges of securities previously impaired |  |  | (112 | ) |  |  | - |  |  |  | (1,783 | ) |  |  | (1,277 | )
Cumulative OTTI recognized in net income for securities still held, end of period |  | $ | 7,205 |  |  | $ | 8,852 |  |  | $ | 7,205 |  |  | $ | 8,852 |
Available-for-Sale [Member] |
Schedule of Investments Debt and Equity Securities [Line Items] |
Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities | Net impairment losses recognized in earnings for available-for-sale securities were as follows:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (In thousands) |
Total impairment losses related to securities which the Company does not intend to sell or more-likely-than-not will not be required to sell: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total OTTI losses recognized |  | $ | 445 |  |  | $ | 150 |  |  | $ | 1,374 |  |  | $ | 251 |
Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Net impairment losses recognized in earnings for securities which the Company does not intend to sell or more-likely-than-not will not be required to sell before recovery |  |  | 445 |  |  |  | 150 |  |  |  | 1,374 |  |  |  | 251 |
OTTI losses recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery |  |  | 33 |  |  |  | 1,414 |  |  |  | 1,934 |  |  |  | 2,182 |
Net impairment losses recognized in earnings |  | $ | 478 |  |  | $ | 1,564 |  |  | $ | 3,308 |  |  | $ | 2,433 |

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