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Statutory Surplus And Subsidiary Dividend Restrictions | 12 Months Ended
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Dec. 31, 2011
Statutory Surplus And Subsidiary Dividend Restrictions [Abstract] |
Statutory Surplus And Subsidiary Dividend Restrictions | NOTE 8 - Statutory Surplus and Subsidiary Dividend Restrictions The insurance departments of various states in which the insurance subsidiaries of HMEC are domiciled recognize as net income and surplus those amounts determined in conformity with statutory accounting principles prescribed or permitted by the insurance departments, which differ in certain respects from GAAP. Reconciliations of statutory capital and surplus and net income, as determined using statutory accounting principles, to the amounts included in the accompanying consolidated financial statements are as follows:
|  | (Unaudited) |  |  |  |
|  | December 31, |  |
|  | 2011 |  |  | 2010 |  |
Statutory capital and surplus of insurance subsidiaries |  | $ | 711,983 |  |  | $ | 684,909 |  |
Increase (decrease) due to: |  |  |  |  |  |  |  |  |
Deferred policy acquisition costs |  |  | 265,041 |  |  |  | 272,825 |  |
Difference in policyholder reserves |  |  | 58,522 |  |  |  | 50,927 |  |
Goodwill |  |  | 47,396 |  |  |  | 47,396 |  |
Liability for postretirement benefits other than pensions |  |  | (3,326 | ) |  |  | (3,489 | ) |
Investment fair value adjustments on fixed maturities |  |  | 439,944 |  |  |  | 183,549 |  |
Difference in investment reserves |  |  | 84,519 |  |  |  | 65,773 |  |
Federal income tax liability |  |  | (264,019 | ) |  |  | (165,108 | ) |
Net funded status of pension and other postretirement benefit obligations |  |  | (25,137 | ) |  |  | (20,336 | ) |
Non-admitted assets and other, net |  |  | 10,814 |  |  |  | 7,297 |  |
Shareholders' equity (deficit) of parent company and non-insurance subsidiaries |  |  | (1,067 | ) |  |  | (6,057 | ) |
Parent company short-term and long-term debt |  |  | (237,744 | ) |  |  | (237,679 | ) |
Shareholders' equity as reported herein |  | $ | 1,086,926 |  |  | $ | 880,007 |  |
|  | (Unaudited) |
|  | Year Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Statutory net income of insurance subsidiaries |  | $ | 63,986 |  |  | $ | 77,235 |  |  | $ | 69,295 |
Net loss of non-insurance companies |  |  | (10,164 | ) |  |  | (4,211 | ) |  |  | (4,678 | )
Interest expense |  |  | (14,007 | ) |  |  | (13,953 | ) |  |  | (13,971 | )
Tax benefit of interest expense and other parent company current tax adjustments |  |  | 4,603 |  |  |  | 5,411 |  |  |  | 6,779 |
Combined net income |  |  | 44,418 |  |  |  | 64,482 |  |  |  | 57,425 |
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |  |
Deferred policy acquisition costs |  |  | 8,958 |  |  |  | 12,686 |  |  |  | 12,895 |
Policyholder benefits |  |  | 14,419 |  |  |  | 13,018 |  |  |  | 7,550 |
Federal income tax expense |  |  | (6,625 | ) |  |  | (17,987 | ) |  |  | (19,385 | )
Amortization of intangible assets |  |  | - |  |  |  | - |  |  |  | (223 | )
Investment reserves |  |  | 9,903 |  |  |  | 16,167 |  |  |  | 21,188 |
Other adjustments, net |  |  | (593 | ) |  |  | (7,504 | ) |  |  | (5,964 | )
Net income as reported herein |  | $ | 70,480 |  |  | $ | 80,862 |  |  | $ | 73,486 |
The Company has principal insurance subsidiaries domiciled in Illinois and Texas. The statutory financial statements of these subsidiaries are prepared in accordance with accounting principles prescribed or permitted by the Illinois Department of Insurance and the Texas Department of Insurance, as applicable. Prescribed statutory accounting principles include a variety of publications of the National Association of Insurance Commissioners ("NAIC"), as well as state laws, regulations and general administrative rules. The Company's insurance subsidiaries are subject to various regulatory restrictions which limit the amount of annual dividends or other distributions, including loans or cash advances, available to HMEC without prior approval of the insurance regulatory authorities. The aggregate amount of dividends that may be paid in 2012 from all of HMEC's insurance subsidiaries without prior regulatory approval is approximately $71,000. The NAIC has adopted risk-based capital guidelines to evaluate the adequacy of statutory capital and surplus in relation to risks assumed in investments, reserving policies, and volume and types of insurance business written. Based on current guidelines, the risk-based capital statutory requirements are not expected to have a negative regulatory impact on the Company's insurance subsidiaries. At December 31, 2011 and 2010, statutory capital and surplus of each of the Company's insurance subsidiaries was above required levels. At the time of this Annual Report on Form 10-K and during each of the years in the three year period ended December 31, 2011, the Company had no financial reinsurance agreements in effect.

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- Definition Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 55 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6588579&loc=d3e24938-158530 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-5 -Paragraph 8, 9 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24708-158529 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24746-158529 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 55 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6588579&loc=d3e24959-158530 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24790-158529 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.23(c)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 + Details
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