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Fair Value of Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 2022
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:
|  | June 30, 2022 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (In thousands) |
Fair value assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale fixed-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies |  | $ | - |  |  | $ | 32,252 |  |  | $ | - |  |  | $ | 32,252 |
Foreign government |  |  | - |  |  |  | 149,832 |  |  |  | - |  |  |  | 149,832 |
States and political subdivisions |  |  | - |  |  |  | 129,540 |  |  |  | - |  |  |  | 129,540 |
Corporates |  |  | 5,049 |  |  |  | 1,511,924 |  |  |  | - |  |  |  | 1,516,973 |
Mortgage- and asset-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  |  | - |  |  |  | 439,062 |  |  |  | - |  |  |  | 439,062 |
Commercial mortgage-backed securities |  |  | - |  |  |  | 135,505 |  |  |  | - |  |  |  | 135,505 |
Other asset-backed securities |  |  | - |  |  |  | 151,301 |  |  |  | - |  |  |  | 151,301 |
Total available-for-sale fixed-maturity securities |  |  | 5,049 |  |  |  | 2,549,416 |  |  |  | - |  |  |  | 2,554,465 |
Short-term investments |  |  | - |  |  |  | 3,311 |  |  |  | - |  |  |  | 3,311 |
Total available-for-sale securities |  |  | 5,049 |  |  |  | 2,552,727 |  |  |  | - |  |  |  | 2,557,776 |
Equity securities |  |  | 33,228 |  |  |  | 1,015 |  |  |  | 1,634 |  |  |  | 35,877 |
Trading securities |  |  | - |  |  |  | 8,976 |  |  |  | - |  |  |  | 8,976 |
Cash and cash equivalents |  |  | 398,823 |  |  |  | 1,296 |  |  |  | - |  |  |  | 400,119 |
Separate accounts |  |  | - |  |  |  | 2,358,987 |  |  |  | - |  |  |  | 2,358,987 |
Total fair value assets |  | $ | 437,100 |  |  | $ | 4,923,001 |  |  | $ | 1,634 |  |  | $ | 5,361,735 |
Fair value liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Separate accounts |  | $ | - |  |  | $ | 2,358,987 |  |  | $ | - |  |  | $ | 2,358,987 |
Total fair value liabilities |  | $ | - |  |  | $ | 2,358,987 |  |  | $ | - |  |  | $ | 2,358,987 |
|  | December 31, 2021 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (In thousands) |
Fair value assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale fixed-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies |  | $ | - |  |  | $ | 32,400 |  |  | $ | - |  |  | $ | 32,400 |
Foreign government |  |  | - |  |  |  | 152,976 |  |  |  | - |  |  |  | 152,976 |
States and political subdivisions |  |  | - |  |  |  | 153,527 |  |  |  | - |  |  |  | 153,527 |
Corporates |  |  | 5,898 |  |  |  | 1,707,786 |  |  |  | - |  |  |  | 1,713,684 |
Mortgage-and asset-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  |  | - |  |  |  | 375,604 |  |  |  | 27 |  |  |  | 375,631 |
Commercial mortgage-backed securities |  |  | - |  |  |  | 145,525 |  |  |  | - |  |  |  | 145,525 |
Other asset-backed securities |  |  | - |  |  |  | 128,824 |  |  |  | - |  |  |  | 128,824 |
Total available-for-sale fixed-maturity securities |  |  | 5,898 |  |  |  | 2,696,642 |  |  |  | 27 |  |  |  | 2,702,567 |
Short-term investments |  |  | - |  |  |  | 85,243 |  |  |  | - |  |  |  | 85,243 |
Total available-for-sale securities |  |  | 5,898 |  |  |  | 2,781,885 |  |  |  | 27 |  |  |  | 2,787,810 |
Equity securities |  |  | 37,912 |  |  |  | 1,070 |  |  |  | 3,569 |  |  |  | 42,551 |
Trading securities |  |  | - |  |  |  | 24,355 |  |  |  | - |  |  |  | 24,355 |
Cash and cash equivalents |  |  | 351,508 |  |  |  | 40,993 |  |  |  | - |  |  |  | 392,501 |
Separate accounts |  |  | - |  |  |  | 2,799,992 |  |  |  | - |  |  |  | 2,799,992 |
Total fair value assets |  | $ | 395,318 |  |  | $ | 5,648,295 |  |  | $ | 3,596 |  |  | $ | 6,047,209 |
Fair value liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Separate accounts |  | $ | - |  |  | $ | 2,799,992 |  |  | $ | - |  |  | $ | 2,799,992 |
Total fair value liabilities |  | $ | - |  |  | $ | 2,799,992 |  |  | $ | - |  |  | $ | 2,799,992 |
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:
|  | Three months ended June 30, |  |  | Six months ended June 30, (1) |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
|  | (In thousands) |
Level 3 assets, beginning of period |  | $ | 10,689 |  |  | $ | 4,177 |  |  | $ | 3,596 |  |  | $ | 2,047 |
Net unrealized gains (losses) included in other comprehensive income |  |  | 108 |  |  |  | - |  |  |  | 106 |  |  |  | - |
Realized gains (losses) and accretion (amortization) recognized in earnings |  |  | 7 |  |  |  | (150 | ) |  |  | (200 | ) |  |  | (234 | )
Purchases |  |  | 1,588 |  |  |  | 999 |  |  |  | 7,491 |  |  |  | 999 |
Sales |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Settlements |  |  | (1,400 | ) |  |  | (2,190 | ) |  |  | (1,400 | ) |  |  | (2,190 | )
Transfers into Level 3 |  |  | - |  |  |  | 500 |  |  |  | 1,399 |  |  |  | 2,714 |
Transfers out of Level 3 |  |  | (9,358 | ) |  |  | - |  |  |  | (9,358 | ) |  |  | - |
Level 3 assets, end of period |  | $ | 1,634 |  |  | $ | 3,336 |  |  | $ | 1,634 |  |  | $ | 3,336 |
(1) | Activities for investments that enter and exit Level 3 in different quarters within the same fiscal year are not eliminated until the full year amounts are presented.
Carrying Values and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of our financial instruments were as follows:
|  | June 30, 2022 |  |  | December 31, 2021 |
|  | Carrying value |  |  | Estimated fair value |  |  | Carrying value |  |  | Estimated fair value |
|  | (In thousands) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-maturity securities (available-for-sale) |  | $ | 2,554,465 |  |  | $ | 2,554,465 |  |  | $ | 2,702,567 |  |  | $ | 2,702,567 |
Fixed-maturity security (held-to-maturity) (3) |  |  | 1,415,940 |  |  |  | 1,378,744 |  |  |  | 1,379,100 |  |  |  | 1,551,113 |
Short-term investments (available-for-sale) |  |  | 3,311 |  |  |  | 3,311 |  |  |  | 85,243 |  |  |  | 85,243 |
Equity securities |  |  | 35,877 |  |  |  | 35,877 |  |  |  | 42,551 |  |  |  | 42,551 |
Trading securities |  |  | 8,976 |  |  |  | 8,976 |  |  |  | 24,355 |  |  |  | 24,355 |
Policy loans (3) |  |  | 33,069 |  |  |  | 33,069 |  |  |  | 30,612 |  |  |  | 30,612 |
Deposit asset underlying 10% coinsurance agreement (3) |  |  | 227,958 |  |  |  | 227,958 |  |  |  | 231,368 |  |  |  | 231,368 |
Separate accounts |  |  | 2,358,987 |  |  |  | 2,358,987 |  |  |  | 2,799,992 |  |  |  | 2,799,992 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notes payable - Long term (1) (2) |  | $ | 592,504 |  |  | $ | 505,791 |  |  | $ | 592,102 |  |  | $ | 605,667 |
Surplus note (1) (3) |  |  | 1,415,457 |  |  |  | 1,372,732 |  |  |  | 1,378,585 |  |  |  | 1,545,854 |
Separate accounts |  |  | 2,358,987 |  |  |  | 2,358,987 |  |  |  | 2,799,992 |  |  |  | 2,799,992 |
(1) | Carrying value amounts shown are net of issuance costs.
(2) | Classified as a Level 2 fair value measurement.
(3) | Classified as a Level 3 fair value measurement.

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- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition 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 https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 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 (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition 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 Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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