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Fair Value of Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2014
Fair Value of Financial Instruments [Abstract] |
Summary of Company's fair value hierarchy measured at recurring basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured and carried at fair value on a recurring basis. At December 31, 2014, these Level 3 invested assets comprised approximately 2.3% of the Company’s total investment portfolio fair value.
|  |  |  |  |  |  |  | Fair Value Measurements at |
|  | Carrying |  |  | Fair |  |  | Reporting Date Using |
|  | Amount |  |  | Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 535,726 |  |  | $ | 535,726 |  |  | $ | - |  |  | $ | 535,726 |  |  | $ | - |
Other, including |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  |  | 538,199 |  |  |  | 538,199 |  |  |  | 17,857 |  |  |  | 520,342 |  |  |  | - |
Municipal bonds |  |  | 1,647,822 |  |  |  | 1,647,822 |  |  |  | - |  |  |  | 1,634,194 |  |  |  | 13,628 |
Foreign government bonds |  |  | 59,536 |  |  |  | 59,536 |  |  |  | - |  |  |  | 59,536 |  |  |  | - |
Corporate bonds |  |  | 2,834,749 |  |  |  | 2,834,749 |  |  |  | 10,524 |  |  |  | 2,749,508 |  |  |  | 74,717 |
Other mortgage-backed securities |  |  | 1,277,058 |  |  |  | 1,277,058 |  |  |  | - |  |  |  | 1,194,109 |  |  |  | 82,949 |
Total fixed maturities |  |  | 6,893,090 |  |  |  | 6,893,090 |  |  |  | 28,381 |  |  |  | 6,693,415 |  |  |  | 171,294 |
Equity securities |  |  | 110,655 |  |  |  | 110,655 |  |  |  | 92,140 |  |  |  | 18,509 |  |  |  | 6 |
Short-term investments |  |  | 142,039 |  |  |  | 142,039 |  |  |  | 142,039 |  |  |  | - |  |  |  | - |
Other investments |  |  | 12,458 |  |  |  | 12,458 |  |  |  | - |  |  |  | 12,458 |  |  |  | - |
Totals |  |  | 7,158,242 |  |  |  | 7,158,242 |  |  |  | 262,560 |  |  |  | 6,724,382 |  |  |  | 171,300 |
Separate Account (variable annuity) assets (1) |  |  | 1,813,557 |  |  |  | 1,813,557 |  |  |  | 1,813,557 |  |  |  | - |  |  |  | - |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other policyholder funds, embedded derivatives |  |  | 20,049 |  |  |  | 20,049 |  |  |  | - |  |  |  | - |  |  |  | 20,049 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 569,725 |  |  | $ | 569,725 |  |  | $ | - |  |  | $ | 569,725 |  |  | $ | - |
Other, including |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  |  | 435,574 |  |  |  | 435,574 |  |  |  | 17,757 |  |  |  | 417,817 |  |  |  | - |
Municipal bonds |  |  | 1,471,527 |  |  |  | 1,471,527 |  |  |  | - |  |  |  | 1,468,833 |  |  |  | 2,694 |
Foreign government bonds |  |  | 54,951 |  |  |  | 54,951 |  |  |  | - |  |  |  | 54,951 |  |  |  | - |
Corporate bonds |  |  | 2,614,409 |  |  |  | 2,614,409 |  |  |  | 10,181 |  |  |  | 2,543,402 |  |  |  | 60,826 |
Other mortgage-backed securities |  |  | 863,387 |  |  |  | 863,387 |  |  |  | - |  |  |  | 817,378 |  |  |  | 46,009 |
Total fixed maturities |  |  | 6,009,573 |  |  |  | 6,009,573 |  |  |  | 27,938 |  |  |  | 5,872,106 |  |  |  | 109,529 |
Equity securities |  |  | 91,858 |  |  |  | 91,858 |  |  |  | 74,279 |  |  |  | 17,573 |  |  |  | 6 |
Short-term investments |  |  | 206,758 |  |  |  | 206,758 |  |  |  | 206,354 |  |  |  | 404 |  |  |  | - |
Other investments |  |  | 5,000 |  |  |  | 5,000 |  |  |  | - |  |  |  | 5,000 |  |  |  | - |
Totals |  |  | 6,313,189 |  |  |  | 6,313,189 |  |  |  | 308,571 |  |  |  | 5,895,083 |  |  |  | 109,535 |
Separate Account (variable annuity) assets (1) |  |  | 1,747,995 |  |  |  | 1,747,995 |  |  |  | 1,747,995 |  |  |  | - |  |  |  | - |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other policyholder funds, embedded derivatives |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
| (1) | Separate Account (variable annuity) liabilities are set equal to Separate Account (variable annuity) assets.
Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis | The following tables present reconciliations for the periods indicated for all Level 3 assets and liabilities measured at fair value on a recurring basis.
|  |  |  |  | Financial
|  |  | Financial Assets |  | Liabilities(1)
|  | Municipal Bonds |  | Corporate Bonds |  | Other Mortgage- Backed Securities |  | Total Fixed Maturities |  | Equity Securities |  | Total |  |
Beginning balance January 1, 2014 |  |  | $ | 2,694 |  |  |  | $ | 60,826 |  |  |  | $ | 46,009 |  |  |  | $ | 109,529 |  |  |  | $ | 6 |  |  |  | $ | 109,535 |  |  |  | $ | - |
Transfers into Level 3 (2) |  |  |  | 10,056 |  |  |  |  | 20,649 |  |  |  |  | 42,108 |  |  |  |  | 72,813 |  |  |  |  | - |  |  |  |  | 72,813 |  |  |  |  | - |
Transfers out of Level 3 (2) |  |  |  | - |  |  |  |  | (3,510 | ) |  |  |  | (519 | ) |  |  |  | (4,029 | ) |  |  |  | - |  |  |  |  | (4,029 | ) |  |  |  | - |
Total gains or losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net realized gains (losses) included in net income |  |  |  | - |  |  |  |  | - |  |  |  |  | (26 | ) |  |  |  | (26 | ) |  |  |  | - |  |  |  |  | (26 | ) |  |  |  | 1,157 |
Net unrealized gains (losses) included in other comprehensive income |  |  |  | 1,191 |  |  |  |  | 3,611 |  |  |  |  | 118 |  |  |  |  | 4,920 |  |  |  |  | - |  |  |  |  | 4,920 |  |  |  |  | - |
Purchases |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |
Issuances |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 19,338 |
Sales |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |
Settlements |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |
Paydowns, maturities and distributions |  |  |  | (313 | ) |  |  |  | (6,859 | ) |  |  |  | (4,741 | ) |  |  |  | (11,913 | ) |  |  |  | - |  |  |  |  | (11,913 | ) |  |  |  | (446 | )
Ending balance, December 31, 2014 |  |  | $ | 13,628 |  |  |  | $ | 74,717 |  |  |  | $ | 82,949 |  |  |  | $ | 171,294 |  |  |  | $ | 6 |  |  |  | $ | 171,300 |  |  |  | $ | 20,049 |
Beginning balance, January 1, 2013 |  |  | $ | 12,275 |  |  |  | $ | 85,722 |  |  |  | $ | 33,172 |  |  |  | $ | 131,169 |  |  |  | $ | 340 |  |  |  | $ | 131,509 |  |  |  | $ | - |
Transfers into Level 3 (2) |  |  |  | 9,453 |  |  |  |  | 34,258 |  |  |  |  | 67,827 |  |  |  |  | 111,538 |  |  |  |  | - |  |  |  |  | 111,538 |  |  |  |  | - |
Transfers out of Level 3 (2) |  |  |  | (6,347 | ) |  |  |  | (54,530 | ) |  |  |  | (30,847 | ) |  |  |  | (91,724 | ) |  |  |  | - |  |  |  |  | (91,724 | ) |  |  |  | - |
Total gains or losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net realized gains (losses) included in net income |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |
Net unrealized gains (losses) included in other comprehensive income |  |  |  | (481 | ) |  |  |  | (2,007 | ) |  |  |  | (328 | ) |  |  |  | (2,816 | ) |  |  |  | - |  |  |  |  | (2,816 | ) |  |  |  | - |
Purchases |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |
Issuances |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |
Sales |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (334 | ) |  |  |  | (334 | ) |  |  |  | - |
Settlements |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |
Paydowns, maturities and distributions |  |  |  | (12,206 | ) |  |  |  | (2,617 | ) |  |  |  | (23,815 | ) |  |  |  | (38,638 | ) |  |  |  | - |  |  |  |  | (38,638 | ) |  |  |  | - |
Ending balance, December 31, 2013 |  |  | $ | 2,694 |  |  |  | $ | 60,826 |  |  |  | $ | 46,009 |  |  |  | $ | 109,529 |  |  |  | $ | 6 |  |  |  | $ | 109,535 |  |  |  | $ | - |
| (1) | Represents embedded derivatives, all related to the Company’s FIA products, reported in Other Policyholder Funds in the Company’s Consolidated Balance Sheets.
| (2) | Transfers into and out of Level 3 during the years ended December 31, 2014 and 2013 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as having occurred at the end of the reporting period in which the transfers were determined.
Carrying value, fair value and fair value hierarchy of financial assets and financial liabilities | The following table presents the carrying value, fair value and fair value hierarchy of these financial assets and financial liabilities.
|  |  |  |  |  |  |  | Fair Value Measurements at |
|  | Carrying |  |  | Fair |  |  | Reporting Date Using |
|  | Amount |  |  | Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other investments |  | $ | 145,409 |  |  | $ | 149,792 |  |  | $ | - |  |  | $ | - |  |  | $ | 149,792 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed annuity contract liabilities |  |  | 3,774,457 |  |  |  | 3,691,123 |  |  |  | - |  |  |  | - |  |  |  | 3,691,123 |
Policyholder account balances on interest-sensitive life contracts |  |  | 77,415 |  |  |  | 81,461 |  |  |  | - |  |  |  | - |  |  |  | 81,461 |
Other policyholder funds |  |  | 586,689 |  |  |  | 586,689 |  |  |  | - |  |  |  | 500,080 |  |  |  | 86,609 |
Short-term debt |  |  | 38,000 |  |  |  | 38,000 |  |  |  | - |  |  |  | 38,000 |  |  |  | - |
Long-term debt |  |  | 199,939 |  |  |  | 209,495 |  |  |  | 209,495 |  |  |  | - |  |  |  | - |
Other liabilities, repurchase agreement obligations |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other investments |  | $ | 140,685 |  |  | $ | 144,921 |  |  | $ | - |  |  | $ | - |  |  | $ | 144,921 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed annuity contract liabilities |  |  | 3,515,865 |  |  |  | 3,302,333 |  |  |  | - |  |  |  | - |  |  |  | 3,302,333 |
Policyholder account balances on interest-sensitive life contracts |  |  | 78,598 |  |  |  | 79,678 |  |  |  | - |  |  |  | - |  |  |  | 79,678 |
Other policyholder funds |  |  | 346,292 |  |  |  | 346,292 |  |  |  | - |  |  |  | 250,000 |  |  |  | 96,292 |
Short-term debt |  |  | 38,000 |  |  |  | 38,000 |  |  |  | - |  |  |  | 38,000 |  |  |  | - |
Long-term debt |  |  | 199,874 |  |  |  | 218,565 |  |  |  | 218,565 |  |  |  | - |  |  |  | - |
Other liabilities, repurchase agreement obligations |  |  | 25,864 |  |  |  | 25,864 |  |  |  | - |  |  |  | 25,864 |  |  |  | - |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 + Details
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