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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows:

		December 31, 2018
		Level 1				Level 2				Level 3				Total
		(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies		$	-			$	12,233			$	-			$	12,233
Foreign government			-				158,112				-				158,112
States and political subdivisions			-				60,006				-				60,006
Corporates			2,869				1,431,346				3				1,434,218
Residential mortgage-backed securities			-				191,720				231				191,951
Commercial mortgage-backed securities			-				131,355				-				131,355
Other asset-backed securities			-				81,259				501				81,760
Total available-for-sale fixed-maturity securities			2,869				2,066,031				735				2,069,635
Short Term Investments			-				8,171				-				8,171
Total Available-For-Sale Securities			2,869				2,074,202				735				2,077,806
Equity securities			36,473				1,020				186				37,679
Trading securities			-				13,610				-				13,610
Separate accounts			-				2,195,501				-				2,195,501
Total fair value assets		$	39,342			$	4,284,333			$	921			$	4,324,596
Fair value liabilities:
Separate accounts		$	-			$	2,195,501			$	-			$	2,195,501
Total fair value liabilities		$	-			$	2,195,501			$	-			$	2,195,501

		December 31, 2017
		Level 1				Level 2				Level 3				Total
		(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies		$	-			$	11,813			$	-			$	11,813
Foreign government			-				144,489				-				144,489
States and political subdivisions			-				56,127				-				56,127
Corporates			3,240				1,373,039				3				1,376,282
Residential mortgage-backed securities			-				122,544				414				122,958
Commercial mortgage-backed securities			-				135,392				-				135,392
Other asset-backed securities			-				80,781				-				80,781
Total available-for-sale fixed-maturity securities			3,240				1,924,185				417				1,927,842
Available-for-sale equity securities			39,026				1,931				150				41,107
Trading securities			1,428				4,800				-				6,228
Separate accounts			-				2,572,872				-				2,572,872
Total fair value assets		$	43,694			$	4,503,788			$	567			$	4,548,049
Fair value liabilities:
Separate accounts		$	-			$	2,572,872			$	-			$	2,572,872
Total fair value liabilities		$	-			$	2,572,872			$	-			$	2,572,872

Roll forward of Level 3 Assets Measured on Recurring Basis

The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows:

		Year ended December 31,
		2018				2017
		(In thousands)
Level 3 assets, beginning of period		$	567			$	8,162
Net unrealized gains (losses) included in other    comprehensive income			(8	)			232
Realized gains (losses) and accretion (amortization)    recognized in earnings, including OTTI			38				26
Purchases			500				-
Settlements			(169	)			(958	)
Transfers into Level 3			-				-
Transfers out of Level 3 (1)			(7	)			(6,895	)
Level 3 assets, end of period		$	921			$	567

Carrying Values and Estimated Fair Values of Financial Instruments

The carrying values and estimated fair values of our financial instruments were as follows:

		December 31, 2018								December 31, 2017
		Carrying value				Estimated fair value				Carrying value				Estimated fair value
		(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)		$	2,069,635			$	2,069,635			$	1,927,842			$	1,927,842
Fixed-maturity security (held-to-maturity) (3)			970,390				945,331				737,150				779,472
Short-term investments (available-for-sale)			8,171				8,171				-				-
Equity securities (available-for-sale)			-				-				41,107				41,107
Equity securities			37,679				37,679				-				-
Trading securities			13,610				13,610				6,228				6,228
Policy loans (3)			31,501				31,501				32,816				32,816
Deposit asset underlying 10% coinsurance agreement (3)			228,974				228,974				217,336				217,336
Separate accounts			2,195,501				2,195,501				2,572,872				2,572,872
Liabilities:
Notes payable (1)  (2)		$	373,661			$	384,909			$	373,288			$	400,628
Surplus note (1)  (3)			969,685				945,331				736,381				778,050
Separate accounts			2,195,501				2,195,501				2,572,872				2,572,872

⁽¹⁾ Carrying value amounts shown are net of issuance costs.

⁽²⁾ Classified as level 2 fair value measurement.

⁽³⁾ Classified as level 3 fair value measurement.

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19279-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109250915&loc=d3e13467-108611

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-Section 50
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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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