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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2014
Summary of Significant Accounting Policies [Abstract] |
Deferred policy acquisition costs asset by segment | Deferred Policy Acquisition Costs The Company’s deferred policy acquisition costs (“DAC”) asset by segment was as follows:
|  | December 31, |
|  |  | 2014 |  |  |  | 2013 |
Annuity |  | $ | 143,522 |  |  | $ | 170,749 |
Life |  |  | 44,400 |  |  |  | 48,558 |
Property and casualty |  |  | 27,160 |  |  |  | 26,048 |
Total |  | $ | 215,082 |  |  | $ | 245,355 |
Adjustment to amortization expenses | The Company recorded the following adjustments to amortization expense as a result of evaluating actual experience and prospective assumptions, the impact of unlocking:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Increase (decrease) to amortization: |  |  |  |  |  |  |  |  |  |  |  |
Annuity |  | $ | 1,224 |  |  | $ | (3,700 | ) |  | $ | (3,836 | )
Life |  |  | (131 | ) |  |  | 126 |  |  |  | 751 |
Total |  | $ | 1,093 |  |  | $ | (3,574 | ) |  | $ | (3,085 | )
Allocation of goodwill by reporting unit | The allocation of goodwill by reporting unit is as follows:
Annuity |  | $ | 28,025 |
Life |  |  | 9,911 |
Property and casualty |  |  | 9,460 |
Total |  | $ | 47,396 |
Property and Equipment | The following amounts are included in Other Assets in the Consolidated Balance Sheets:
|  | December 31, |
|  |  | 2014 |  |  |  | 2013 |
Property and equipment |  | $ | 108,056 |  |  | $ | 108,394 |
Less: accumulated depreciation |  |  | 77,027 |  |  |  | 73,459 |
Total |  | $ | 31.029 |  |  | $ | 34,935 |
Summary of guaranteed minimum death benefit | The Company has a relatively low exposure to GMDB risk as shown below.
|  | December 31, |
|  |  | 2014 |  |  |  | 2013 |
GMDB reserve |  | $ | 278 |  |  | $ | 209 |
Aggregate in-the-money death benefits under the GMDB provision |  |  | 29,866 |  |  |  | 30,422 |
Variable annuity contract value distribution based on GMDB feature: |  |  |  |  |  |  |  |
No guarantee |  |  | 31 | % |  |  | 30 | %
Return of premium guarantee |  |  | 63 | % |  |  | 64 | %
Guarantee of premium roll-up at an annual rate of 3% or 5% |  |  | 6 | % |  |  | 6 | %
Total |  |  | 100 | % |  |  | 100 | %
Stock options fair value pricing model weighted-average assumptions | The fair value of options granted was estimated on the respective dates of grant using the Black-Scholes option pricing model with the weighted-average assumptions shown in the following table.
|  |  | Year Ended December 31, |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2012 |
Number of options granted |  |  | 175,632 |  |  |  | 245,424 |  |  |  | 296,188 |
Weighted average grant date fair value of options granted |  | $ | 9.01 |  |  | $ | 8.25 |  |  | $ | 6.02 |
Weighted average assumptions: |  |  |  |  |  |  |  |  |  |  |  |
Risk-free interest rate |  |  | 1.9 | % |  |  | 1.0 | % |  |  | 1.0 | %
Expected dividend yield |  |  | 2.5 | % |  |  | 2.7 | % |  |  | 2.2 | %
Expected life, in years |  |  | 5.7 |  |  |  | 5.8 |  |  |  | 5.8 |
Expected volatility (based on historical volatility) |  |  | 40.3 | % |  |  | 54.5 | % |  |  | 45.1 | %
Computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators | The computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators, were as follows:
|  |  | Year Ended December 31, |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2012 |
Basic: |  |  |  |  |  |  |  |  |  |  |  |
Net income for the period |  | $ | 104,243 |  |  | $ | 110,893 |  |  | $ | 103,866 |
Weighted average number of common shares during the period (in thousands) |  |  | 41,646 |  |  |  | 40,377 |  |  |  | 39,514 |
Net income per share - basic |  | $ | 2.50 |  |  | $ | 2.75 |  |  | $ | 2.63 |
Diluted: |  |  |  |  |  |  |  |  |  |  |  |
Net income for the period |  | $ | 104,243 |  |  | $ | 110,893 |  |  | $ | 103,866 |
Weighted average number of common shares during the period (in thousands) |  |  | 41,646 |  |  |  | 40,377 |  |  |  | 39,514 |
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities (in thousands): |  |  |  |  |  |  |  |  |  |  |  |
Stock options |  |  | 137 |  |  |  | 211 |  |  |  | 222 |
Common stock units related to deferred compensation for Directors |  |  | - |  |  |  | - |  |  |  | 112 |
Common stock units related to deferred compensation for employees |  |  | 70 |  |  |  | 112 |  |  |  | 116 |
Restricted common stock units related to incentive compensation |  |  | 378 |  |  |  | 933 |  |  |  | 1,424 |
Total common and common equivalent shares adjusted to calculate diluted earnings per share (in thousands) |  |  | 42,231 |  |  |  | 41,633 |  |  |  | 41,388 |
Net income per share - diluted |  | $ | 2.47 |  |  | $ | 2.66 |  |  | $ | 2.51 |
Components of comprehensive income | The components of comprehensive income (loss) were as follows:
|  |  | Year Ended December 31, |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2012 |
Net income |  | $ | 104,243 |  |  | $ | 110,893 |  |  | $ | 103,866 |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Change in net unrealized gains and losses on fixed maturities and equity securities |  |  |  |  |  |  |  |  |  |  |  |
Net unrealized holding gains and losses on fixed maturities and equity securities arising during the period |  |  | 264,136 |  |  |  | (363,350 | ) |  |  | 204,460 |
Less: reclassification adjustment for net gains included in income before income tax |  |  | 10,943 |  |  |  | 22,245 |  |  |  | 27,298 |
Total, before tax |  |  | 253,193 |  |  |  | (385,595 | ) |  |  | 177,162 |
Income tax expense (benefit) |  |  | 89,629 |  |  |  | (137,185 | ) |  |  | 62,984 |
Total, net of tax |  |  | 163,564 |  |  |  | (248,410 | ) |  |  | 114,178 |
Change in net funded status of pension and other postretirement benefit obligations |  |  |  |  |  |  |  |  |  |  |  |
Before tax |  |  | (1,810 | ) |  |  | 5,645 |  |  |  | 1,276 |
Income tax expense (benefit) |  |  | (633 | ) |  |  | 2,110 |  |  |  | 345 |
Total, net of tax |  |  | (1,177 | ) |  |  | 3,535 |  |  |  | 931 |
Total comprehensive income (loss) |  | $ | 266,630 |  |  | $ | (133,982 | ) |  | $ | 218,975 |
Accumulated Other Comprehensive Income (Loss) | Reflecting accounting guidance adopted prospectively effective January 1, 2013, the following table reconciles the components of accumulated other comprehensive income (loss) for the periods indicated.
| Unrealized |  |  |  |  |  |  |  |
| Gains and |  |  |  |  |  |  |  |
| Losses on |  |  |  |  |  |  |  |
| Fixed Maturities |  |  |  |  |  |  |  |
| and Equity |  | Defined |  |  |  |
| Securities (1)(2) |  | Benefit Plans (1) |  | Total (1)
Beginning balance, January 1, 2014 |  | $ | 133,990 |  |  |  | $ | (11,776 | ) |  |  | $ | 122,214 |
Other comprehensive income (loss) before reclassifications |  |  | 170,677 |  |  |  |  | (1,177 | ) |  |  |  | 169,500 |
Amounts reclassified from accumulated other comprehensive income |  |  | (7,113 | ) |  |  |  | - |  |  |  |  | (7,113 | )
Net current period other comprehensive income (loss) |  |  | 163,564 |  |  |  |  | (1,177 | ) |  |  |  | 162,387 |
Ending balance, December 31, 2014 |  | $ | 297,554 |  |  |  | $ | (12,953 | ) |  |  | $ | 284,601 |
Beginning balance, January 1, 2013 |  | $ | 382,400 |  |  |  | $ | (15,311 | ) |  |  | $ | 367,089 |
Other comprehensive income (loss) before reclassifications |  |  | (233,951 | ) |  |  |  | 3,535 |  |  |  |  | (230,416 | )
Amounts reclassified from accumulated other comprehensive income |  |  | (14,459 | ) |  |  |  | - |  |  |  |  | (14,459 | )
Net current period other comprehensive income (loss) |  |  | (248,410 | ) |  |  |  | 3,535 |  |  |  |  | (244,875 | )
Ending balance, December 31, 2013 |  | $ | 133,990 |  |  |  | $ | (11,776 | ) |  |  | $ | 122,214 |
| (1) | All amounts are net of tax.
| (2) | The pretax amounts reclassified from accumulated other comprehensive income, $10,943 and $22,245, are included in net realized investment gains and losses and the related tax expenses, $3,830 and $7,786, are included in income tax expense in the Consolidated Statements of Operations for the years ended December 31, 2014 and 2013, respectively.

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