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Fair Value of Financial Instruments (Tables) | 3 Months Ended
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Mar. 31, 2016
Fair Value Disclosures [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 March 31, 2016, these Level 3 invested assets comprised 2.6% 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 |
March 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 495,200 |  | $ | 495,200 |  | $ | - |  | $ | 493,001 |  | $ | 2,199 |
Other, including |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  |  | 540,120 |  |  | 540,120 |  |  | 13,863 |  |  | 526,257 |  |  | - |
Municipal bonds |  |  | 1,727,328 |  |  | 1,727,328 |  |  | - |  |  | 1,680,835 |  |  | 46,493 |
Foreign government bonds |  |  | 74,087 |  |  | 74,087 |  |  | - |  |  | 74,087 |  |  | - |
Corporate bonds |  |  | 2,833,931 |  |  | 2,833,931 |  |  | 8,711 |  |  | 2,755,149 |  |  | 70,071 |
Other mortgage-backed securities |  |  | 1,545,836 |  |  | 1,545,836 |  |  | - |  |  | 1,464,214 |  |  | 81,622 |
Total fixed maturities |  |  | 7,216,502 |  |  | 7,216,502 |  |  | 22,574 |  |  | 6,993,543 |  |  | 200,385 |
Equity securities |  |  | 104,044 |  |  | 104,044 |  |  | 90,321 |  |  | 13,717 |  |  | 6 |
Short-term investments |  |  | 216,204 |  |  | 216,204 |  |  | 210,320 |  |  | 5,884 |  |  | - |
Other investments |  |  | 14,640 |  |  | 14,640 |  |  | - |  |  | 14,640 |  |  | - |
Totals |  |  | 7,551,390 |  |  | 7,551,390 |  |  | 323,215 |  |  | 7,027,784 |  |  | 200,391 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment contract and life policy reserves, embedded derivatives |  |  | 23 |  |  | 23 |  |  | - |  |  | 23 |  |  | - |
Other policyholder funds, embedded derivatives |  |  | 42,085 |  |  | 42,085 |  |  | - |  |  | - |  |  | 42,085 |
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and federally sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 504,414 |  | $ | 504,414 |  | $ | - |  | $ | 504,414 |  | $ | - |
Other, including |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  |  | 546,111 |  |  | 546,111 |  |  | 14,258 |  |  | 531,853 |  |  | - |
Municipal bonds |  |  | 1,708,943 |  |  | 1,708,943 |  |  | - |  |  | 1,678,564 |  |  | 30,379 |
Foreign government bonds |  |  | 73,617 |  |  | 73,617 |  |  | - |  |  | 73,617 |  |  | - |
Corporate bonds |  |  | 2,779,415 |  |  | 2,779,415 |  |  | 10,195 |  |  | 2,701,645 |  |  | 67,575 |
Other mortgage-backed securities |  |  | 1,478,840 |  |  | 1,478,840 |  |  | - |  |  | 1,403,374 |  |  | 75,466 |
Total fixed maturities |  |  | 7,091,340 |  |  | 7,091,340 |  |  | 24,453 |  |  | 6,893,467 |  |  | 173,420 |
Equity securities |  |  | 99,797 |  |  | 99,797 |  |  | 86,088 |  |  | 13,703 |  |  | 6 |
Short-term investments |  |  | 174,152 |  |  | 174,152 |  |  | 169,764 |  |  | 4,388 |  |  | - |
Other investments |  |  | 14,001 |  |  | 14,001 |  |  | - |  |  | 14,001 |  |  | - |
Totals |  |  | 7,379,290 |  |  | 7,379,290 |  |  | 280,305 |  |  | 6,925,559 |  |  | 173,426 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment contract and life policy reserves, embedded derivatives |  |  | 14 |  |  | 14 |  |  | - |  |  | 14 |  |  | - |
Other policyholder funds, embedded derivatives |  |  | 39,021 |  |  | 39,021 |  |  | - |  |  | - |  |  | 39,021 |
Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis | The Company did not have any transfers between Levels 1 and 2 during the three months ended March 31, 2016. The following table presents 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) |
|  |  |  |  |  | Mortgage- |  | Total |  |  |  |  |  |  |
|  | Municipal |  | Corporate |  | Backed |  | Fixed |  | Equity |  |  |  |  |
|  | Bonds |  | Bonds |  | Securities(2) |  | Maturities |  | Securities |  | Total |  |  |
Beginning balance, January 1, 2016 |  | $ | 30,379 |  | $ | 67,575 |  | $ | 75,466 |  | $ | 173,420 |  | $ | 6 |  | $ | 173,426 |  | $ | 39,021 |
Transfers into Level 3 (3) |  |  | 14,751 |  |  | 6,059 |  |  | 11,642 |  |  | 32,452 |  |  | - |  |  | 32,452 |  |  | - |
Transfers out of Level 3 (3) |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total gains or losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net realized gains (losses) included in net income related to financial assets |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Net realized (gains) losses included in net income related to financial liabilities |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 674 |
Net unrealized gains (losses) included in other comprehensive income |  |  | 1,484 |  |  | 388 |  |  | (7) |  |  | 1,865 |  |  | - |  |  | 1,865 |  |  | - |
Purchases |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Issuances |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 3,491 |
Sales |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Settlements |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Paydowns, maturities and distributions |  |  | (121) |  |  | (3,951) |  |  | (3,280) |  |  | (7,352) |  |  | - |  |  | (7,352) |  |  | (1,101) |
Ending balance, March 31, 2016 |  | $ | 46,493 |  | $ | 70,071 |  | $ | 83,821 |  | $ | 200,385 |  | $ | 6 |  | $ | 200,391 |  | $ | 42,085 |
Beginning balance, January 1, 2015 |  | $ | 13,628 |  | $ | 74,717 |  | $ | 82,949 |  | $ | 171,294 |  | $ | 6 |  | $ | 171,300 |  | $ | 20,049 |
Transfers into Level 3 (3) |  |  | - |  |  | 1,895 |  |  | 461 |  |  | 2,356 |  |  | - |  |  | 2,356 |  |  | - |
Transfers out of Level 3 (3) |  |  | - |  |  | - |  |  | (9,664) |  |  | (9,664) |  |  | - |  |  | (9,664) |  |  | - |
Total gains or losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net realized gains (losses) included in net income related to financial assets |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Net realized (gains) losses included in net income related to financial liabilities |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (439) |
Net unrealized gains (losses) included in other comprehensive income |  |  | 380 |  |  | 352 |  |  | 3 |  |  | 735 |  |  | - |  |  | 735 |  |  | - |
Purchases |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Issuances |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,964 |
Sales |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Settlements |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Paydowns, maturities and distributions |  |  | (123) |  |  | (4,686) |  |  | (1,155) |  |  | (5,964) |  |  | - |  |  | (5,964) |  |  | (534) |
Ending balance, March 31, 2015 |  | $ | 13,885 |  | $ | 72,278 |  | $ | 72,594 |  | $ | 158,757 |  | $ | 6 |  | $ | 158,763 |  | $ | 22,040 |
(1) | Represents embedded derivatives, all related to the Company’s fixed indexed annuity (“FIA”) products, reported in Other Policyholder Funds in the Company’s Consolidated Balance Sheets.
| (2) | Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities.
| (3) | Transfers into and out of Level 3 during the three months ended March 31, 2016 and 2015 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.
Summary of fair value assets and liabilities measured on nonrecurring basis | 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 |
March 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other investments |  | $ | 148,686 |  | $ | 153,150 |  | $ | - |  | $ | - |  | $ | 153,150 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment contract and life policy reserves, fixed annuity contracts |  |  | 4,128,205 |  |  | 4,004,390 |  |  | - |  |  | - |  |  | 4,004,390 |
Investment contract and life policy reserves, account values on life contracts |  |  | 77,562 |  |  | 81,486 |  |  | - |  |  | - |  |  | 81,486 |
Other policyholder funds |  |  | 651,834 |  |  | 651,834 |  |  | - |  |  | 575,256 |  |  | 76,578 |
Long-term debt |  |  | 247,022 |  |  | 254,700 |  |  | 254,700 |  |  | - |  |  | - |
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other investments |  | $ | 148,759 |  | $ | 153,228 |  | $ | - |  | $ | - |  | $ | 153,228 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment contract and life policy reserves, fixed annuity contracts |  |  | 4,072,102 |  |  | 4,049,840 |  |  | - |  |  | - |  |  | 4,049,840 |
Investment contract and life policy reserves, account values on life contracts |  |  | 77,429 |  |  | 81,360 |  |  | - |  |  | - |  |  | 81,360 |
Other policyholder funds |  |  | 653,631 |  |  | 653,631 |  |  | - |  |  | 575,104 |  |  | 78,527 |
Long-term debt |  |  | 249,346 |  |  | 252,700 |  |  | 252,700 |  |  | - |  |  | - |

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- Definition Carrying value, fair value and fair value hierarchy of financial assets and financial liabilities not carried at fair value, are measured on a nonrecurring basis, and fair value disclosure is required. + References No definition available. + 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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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: 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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