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Fair Value Of Financial Instruments
 6 Months Ended
Jun. 30, 2011
Fair Value Of Financial Instruments  
Fair Value Of Financial Instruments

Note 3 - Fair Value of Financial Instruments

The following table presents the Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2011 and December 31, 2010. At June 30, 2011, Level 3 invested assets comprised approximately 1.0% of the Company's total investment portfolio fair value.

 

                  

Fair Value Measurements at

  
     Carrying
Amount		      Fair
Value		      Reporting Date Using (1)  
           Level 1      Level 2      Level 3  

June 30, 2011

               

Financial Assets

               

Investments

               

Fixed maturities

               

U.S. government and federally
sponsored agency obligations

               

Mortgage-backed securities

    $ 472,811       $ 472,811       $ -       $ 472,811       $ -   

Other

      570,282         570,282         117,554         452,728         -   

Municipal bonds

      1,167,474         1,167,474         -         1,167,474         -   

Foreign government bonds

      47,233         47,233         -         47,233         -   

Corporate bonds

      2,049,357         2,049,357         30,508         1,969,564         49,285   

Other mortgage-backed securities

      757,645         757,645         -         756,821         824   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Totals

      5,064,802         5,064,802         148,062         4,866,631         50,109   

Equity securities

      25,133         25,133         10,242         14,507         384   

Short-term investments

      35,020         35,020         31,737         3,283         -   

Other investments (2)

      124,784         128,733         -         -         -   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments

      5,249,739         5,253,688         190,041         4,884,421         50,493   

Separate Account (variable annuity) assets

      1,371,214         1,371,214         -         1,371,214         -   

Financial Liabilities

               

Fixed annuity contract liabilities

      2,744,487         2,463,770            

Policyholder account balances on
interest-sensitive life contracts

      79,471         74,787            

Other policyholder funds

      106,358         106,358            

Short-term debt

      38,000         38,000            

Long-term debt

      199,712         217,987            

December 31, 2010

               

Financial Assets

               

Investments

               

Fixed maturities

               

U.S. government and federally
sponsored agency obligations

               

                Mortgage-backed securities

    $ 468,044       $ 468,044       $ -       $ 468,044       $ -   

                Other

      497,454         497,454         114,931         382,523         -   

Municipal bonds

      1,088,707         1,088,707         -         1,088,707         -   

Foreign government bonds

      45,536         45,536         -         45,536         -   

Corporate bonds

      1,932,588         1,932,588         32,087         1,855,257         45,244   

Other mortgage-backed securities

      683,208         683,208         -         682,263         945   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Totals

      4,715,537         4,715,537         147,018         4,522,330         46,189   

Equity securities

      24,056         24,056         9,866         13,794         396   

Short-term investments

      211,998         211,998         204,950         7,048         -   

Other investments (2)

      122,032         125,790         -         -         -   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments

      5,073,623         5,077,381         361,834         4,543,172         46,585   

Separate Account (variable annuity) assets

      1,375,656         1,375,656         -         1,375,656         -   

Financial Liabilities

               

Fixed annuity contract liabilities

      2,614,380         2,346,971            

Policyholder account balances on
interest-sensitive life contracts

      79,710         75,011            

Other policyholder funds

      112,739         112,739            

Short-term debt

      38,000         38,000            

Long-term debt

      199,679         214,971            

(1)

This information is not required for financial and nonfinancial assets and liabilities not recognized at fair value in the Consolidated Balance Sheets.

(2)

Fair value of "Other investments" includes investments, primarily policy loans, for which inputs to fair value measurements are not required. Inputs to fair value measurements are provided only for those investments carried at fair value.

 

The Company did not have any transfers between Levels 1 and 2 during the six months ended June 30, 2011. The following tables present reconciliations for the three and six months ended June 30, 2011 and 2010 for all Level 3 assets measured at fair value on a recurring basis.

 

      Corporate  
Bonds		     Other
Mortgage-
Backed
  Securities  		     Total
Fixed
  Maturities  		     Equity
  Securities   		      Total    

Financial Assets

          

Beginning balance, April 1, 2011

     $33,557           $877             $34,434             $396             $34,830        

Transfers in (out) of Level 3 (1)

     15,054           -              15,054             -              15,054        

Total gains or losses

          

Net realized gains (losses) included in net income

     -            -              -              -              -         

Net unrealized gains (losses) included in other comprehensive income

     967           6             973             (12)             961        

Purchases

     -            -              -              -              -         

Issuances

     -            -              -              -              -         

Sales

     -            -              -              -              -         

Settlements

     -            -              -              -              -         

Paydowns and maturities

           (293)              (59)                   (352)                    -                    (352)        

Ending balance, June 30, 2011

     $49,285           $824             $50,109             $384             $50,493        

Beginning balance, January 1, 2011

     $45,244           $945             $46,189             $396             $46,585        

Transfers in (out) of Level 3 (1)

     3,664           -              3,664             -              3,664        

Total gains or losses

          

Net realized gains (losses) included in net income

     -            -              -              -              -         

Net unrealized gains (losses) included in other comprehensive income

     845           14             859             (12)             847        

Purchases

     -            -              -              -              -         

Issuances

     -            -              -              -              -         

Sales

     -            -              -              -              -         

Settlements

     -            -              -              -              -         

Paydowns and maturities

           (468)            (135)                   (603)                    -                    (603)        

Ending balance, June 30, 2011

     $49,285           $824             $50,109             $384             $50,493        

(1)

Transfers into and out of Level 3 during the periods ended June 30, 2011 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company's policy is to recognize transfers in and transfers out as of the ending date of the reporting period.

 

 

      Corporate  
Bonds		     Other
Mortgage-
Backed
  Securities  		     Total
Fixed
  Maturities  		     Equity
  Securities  		       Total    

Financial Assets

          

Beginning balance, April 1, 2010

     $  3,982            $7,456            $11,438            $539            $11,977        

Transfers in (out) of Level 3 (1)

     8,846            -             8,846            -             8,846        

Total gains or losses

          

Net realized gains (losses) included in net income

     -             -             -             -             -         

Net unrealized gains (losses) included in other comprehensive income

     256            156            412            -             412        

Purchases

     -             -             -             -             -         

Issuances

     -             -             -             -             -         

Sales

     -             -             -             -             -         

Settlements

     -             -             -             -             -         

Paydowns and maturities

           (167)                  (99)                  (266)                   -                   (266)        

Ending balance, June 30, 2010

     $12,917            $7,513            $20,430            $539            $20,969        

Beginning balance, January 1, 2010

     $  2,439            $7,860            $10,299            $539            $10,838        

Transfers in (out) of Level 3 (1)

     10,153            (390)            9,763            -             9,763        

Total gains or losses

          

Net realized gains (losses) included in net income

     -             -             -             -             -         

Net unrealized gains (losses) included in other comprehensive income

     495            303            798            -             798        

Purchases

     -             -             -             -             -         

Issuances

     -             -             -             -             -         

Sales

     -             -             -             -             -         

Settlements

     -             -             -             -             -         

Paydowns and maturities

           (170)                (260)                  (430)                   -                   (430)        

Ending balance, June 30, 2010

     $12,917            $7,513            $20,430            $539            $20,969        

 

(1)

Transfers into and out of Level 3 during the periods ended June 30, 2010 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company's policy is to recognize transfers in and transfers out as of the ending date of the reporting period.

At June 30, 2011 and 2010, there were no realized gains or losses, due to the change in unrealized gains or losses, included in earnings that were attributable to Level 3 assets still held.