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Stockholders' Equity and Comprehensive Income
 12 Months Ended
Dec. 31, 2014
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Stockholders' Equity and Comprehensive Income
Stockholders’ Equity and Comprehensive Income
(a)
Stockholders’ Equity
As of December 31, 2014, we had 13.3 million shares reserved for various stock compensation and purchase plans, retirement plans, and dividend reinvestment plans. As a convenience to our employees and directors, we repurchase the Parent’s stock from time-to-time as permitted under our stock-based compensation plans. The Parent has not had an authorized stock repurchase program since 2009. The following table provides information regarding the purchase of the Parent’s common stock during the 2012 through 2014 reporting periods:
($ in thousands)
 
 
 
 
 
Period
 
Shares Purchased in Connection with Restricted Stock Vestings and Stock Option Exercises
 
Cost of Shares Purchased in Connection with Restricted Stock Vestings and Stock Option
Exercises
2014
 
154,559

 
$
3,563

2013
 
167,846

 
3,716

2012
 
194,575

 
3,495


 
Our ability to declare and pay dividends on the Parent's common stock is dependent on liquidity at the Parent coupled with the ability of the Insurance Subsidiaries to declare and pay dividends, if necessary, and/or the availability of other sources of liquidity to the Parent. See Note 20. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” for information regarding these dividend restrictions.

(b) The components of comprehensive income, both gross and net of tax, for 2014, 2013, and 2012 were as follows:
2014
 
 
 
 
 
 
($ in thousands)
 
Gross
 
Tax
 
Net
Net income
 
$
197,131

 
55,304

 
141,827

Components of OCI:
 
 

 
 

 
 

Unrealized gains on investment securities:
 
 

 
 

 
 

Unrealized holding gains during the year
 
72,940

 
25,529

 
47,411

Amounts reclassified into net income:
 
 
 
 
 


HTM securities
 
(1,299
)
 
(455
)
 
(844
)
Non-credit OTTI
 
1,669

 
584

 
1,085

Realized gains on AFS securities
 
(28,864
)
 
(10,102
)
 
(18,762
)
Net unrealized gains
 
44,446

 
15,556

 
28,890

Defined benefit pension and post-retirement plans:
 
 

 
 

 
 

Net actuarial loss
 
(54,136
)
 
(18,947
)
 
(35,189
)
Amounts reclassified into net income:
 
 

 
 

 
 

Net actuarial loss
 
1,902

 
666

 
1,236

Defined benefit pension and post-retirement plans
 
(52,234
)
 
(18,281
)
 
(33,953
)
Other comprehensive loss
 
(7,788
)
 
(2,725
)
 
(5,063
)
Comprehensive income
 
$
189,343

 
52,579

 
136,764

 

2013
 
 
 
 
 
 
($ in thousands)
 
Gross
 
Tax
 
Net
Net income
 
$
142,267

 
35,849

 
106,418

Components of OCI:
 
 

 
 

 
 

Unrealized losses on investment securities:
 
 

 
 

 
 

Unrealized holding losses during the period
 
(83,934
)
 
(29,377
)
 
(54,557
)
Non-credit OTTI recognized in OCI
 
77

 
27

 
50

Amounts reclassified into net income:
 
 
 
 
 


HTM securities
 
(1,577
)
 
(552
)
 
(1,025
)
Non-credit OTTI
 
14

 
5

 
9

Realized gains on AFS securities
 
(23,540
)
 
(8,239
)
 
(15,301
)
Net unrealized losses
 
(108,960
)
 
(38,136
)
 
(70,824
)
Defined benefit pension and post-retirement plans:
 
 

 
 

 
 

Net actuarial gain
 
59,654

 
20,879

 
38,775

Amounts reclassified into net income:
 
 

 
 

 
 

Net actuarial loss
 
4,374

 
1,531

 
2,843

Prior service cost
 
10

 
4

 
6

      Curtailment expense
 
16

 
5

 
11

Defined benefit pension and post-retirement plans
 
64,054

 
22,419

 
41,635

Other comprehensive loss
 
(44,906
)
 
(15,717
)

(29,189
)
Comprehensive income
 
$
97,361

 
20,132

 
77,229

2012
 
 
 
 
 
 
($ in thousands)
 
Gross
 
Tax
 
Net
Net income
 
$
37,635

 
(328
)
 
37,963

Components of OCI:
 
 

 
 

 
 

Unrealized gains on investment securities:
 
 

 
 

 
 

Unrealized holding gains during the period
 
47,594

 
16,657

 
30,937

Non-credit OTTI recognized in OCI
 
2,554

 
894

 
1,660

Amounts reclassified into net income:
 
 
 
 
 


HTM securities
 
(2,432
)
 
(851
)
 
(1,581
)
Non-credit OTTI
 
280

 
98

 
182

Realized gains on AFS securities
 
(9,412
)
 
(3,294
)
 
(6,118
)
Net unrealized gains
 
38,584

 
13,504

 
25,080

Defined benefit pension and post-retirement plans:
 
 

 
 

 
 

Net actuarial loss
 
(26,566
)
 
(9,298
)
 
(17,268
)
Amounts reclassified into net income:
 
 

 
 

 
 

Net actuarial loss
 
5,903

 
2,066

 
3,837

Prior service cost
 
150

 
53

 
97

Defined benefit pension and post-retirement plans
 
(20,513
)
 
(7,179
)
 
(13,334
)
Other comprehensive income
 
18,071

 
6,325

 
11,746

Comprehensive income
 
$
55,706

 
5,997

 
49,709


(c) The balances of, and changes in, each component of AOCI (net of taxes) as of December 31, 2014 and 2013 were as follows:
 
 
Net Unrealized (Loss) Gain on Investment Securities
 
 
 
 
 
 
($ in thousands)
 
OTTI Related
 
HTM Related
 
All Other
 
Investments Subtotal
 
Defined Benefit Pension and Post- retirement Plans
 
Total AOCI
Balance, December 31, 2012
 
$
(1,658
)
 
2,594

 
121,391

 
122,327

 
(68,287
)
 
54,040

OCI before reclassifications
 
50

 
(102
)
 
(54,455
)
 
(54,507
)
 
38,775

 
(15,732
)
Amounts reclassified from AOCI
 
9

 
(1,025
)
 
(15,301
)
 
(16,317
)
 
2,860

 
(13,457
)
Net current period OCI
 
59

 
(1,127
)
 
(69,756
)
 
(70,824
)
 
41,635

 
(29,189
)
Balance, December 31, 2013
 
(1,599
)
 
1,467

 
51,635

 
51,503

 
(26,652
)

24,851

OCI before reclassifications
 
—

 
—

 
47,411

 
47,411

 
(35,189
)
 
12,222

Amounts reclassified from AOCI
 
1,085

 
(844
)
 
(18,762
)
 
(18,521
)
 
1,236

 
(17,285
)
Net current period OCI
 
1,085

 
(844
)
 
28,649

 
28,890

 
(33,953
)
 
(5,063
)
Balance, December 31, 2014
 
$
(514
)
 
623

 
80,284

 
80,393

 
(60,605
)
 
19,788

 

The reclassifications out of AOCI are as follows:
 
 
 
Affected Line Item in the Consolidated Statement of Income
($ in thousands)
Year ended December 31, 2014
 
Year ended
December 31, 2013
 
OTTI related
 
 
 
 
 
Amortization of non-credit OTTI losses on HTM securities
$
—

 
14

 
Net investment income earned
      Non-credit OTTI on disposed securities
1,669

 
—

 
Net realized gains
 
1,669

 
14

 
Income from continuing operations, before federal income tax
 
(584
)
 
(5
)
 
Total federal income tax expense (benefit)
 
1,085

 
9

 
Net income
HTM related
 
 
 
 
 
Unrealized gains and losses on HTM disposals
157

 
390

 
Net realized investment gains
Amortization of net unrealized gains on HTM securities
(1,456
)
 
(1,967
)
 
Net investment income earned
 
(1,299
)
 
(1,577
)
 
Income from continuing operations, before federal income tax
 
455

 
552

 
Total federal income tax expense (benefit)
 
(844
)
 
(1,025
)
 
Net income
Realized gains and losses on AFS
 
 
 
 
 
Realized gains and losses on AFS disposals
(28,864
)
 
(23,540
)
 
Net realized investment gains
 
(28,864
)
 
(23,540
)
 
Income from continuing operations, before federal income tax
 
10,102

 
8,239

 
Total federal income tax expense (benefit)
 
(18,762
)
 
(15,301
)
 
Net income
Defined benefit pension and post-retirement life plans
 
 
 
 
 
Net actuarial loss
331

 
909

 
Losses and loss expenses incurred
 
1,571

 
3,465

 
Policy acquisition costs
 
1,902

 
4,374

 
Income from continuing operations, before federal income tax
 
 
 
 
 
 
Prior service cost
—

 
7

 
Losses and loss expenses incurred
 
—

 
3

 
Policy acquisition costs
 
—

 
10

 
Income from continuing operations, before federal income tax
 
 
 
 
 
 
Curtailment expense
—

 
16

 
Policy acquisition costs
 
—

 
16

 
Income from continuing operations, before federal income tax
 
 
 
 
 
 
Total defined benefit pension and post-retirement life
1,902

 
4,400

 
Income from continuing operations, before federal income tax
 
(666
)
 
(1,540
)
 
Total federal income tax expense (benefit)
 
1,236

 
2,860

 
Net income
 
 
 
 
 
 
Total reclassifications for the period
$
(17,285
)
 
(13,457
)
 
Net income