Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Future Policy Benefits, Interest-sensitive Life Contract Liabilities and Annuity Contract Liabilities

Investment Contract and Life Policy Reserves

This table summarizes the Company’s investment contract and life policy reserves.

	September 30,		December 31,
	2016		2015

Investment contract reserves	$	4,308,100	$	4,072,102
Life policy reserves		1,077,807		1,054,740
Total	$	5,385,907	$	5,126,842

Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) represents the accumulated change in shareholders’ equity from transactions and other events and circumstances from non-shareholder sources. For the Company, accumulated other comprehensive income (loss) includes the after tax change in net unrealized gains and losses on fixed maturities and equity securities and the after tax change in net funded status of pension obligations for the period as shown in the Consolidated Statement of Changes in Shareholders’ Equity. The following tables reconcile these components.

	Unrealized Gains
	and Losses on
	Fixed Maturities
	and Equity				Defined
	Securities (1)(2)				Benefit Plans (1)				Total (1)

Beginning balance, July 1, 2016		$	329,653			$	(11,794	)		$	317,859
Other comprehensive income (loss)
before reclassifications			9,912				-				9,912
Amounts reclassified from accumulated
other comprehensive income (loss)			(2,274	)			-				(2,274	)
Net current period other
comprehensive income (loss)			7,638				-				7,638
Ending balance, September 30, 2016		$	337,291			$	(11,794	)		$	325,497

Beginning balance, January 1, 2016		$	175,167			$	(11,794	)		$	163,373
Other comprehensive income (loss)
before reclassifications			167,692				-				167,692
Amounts reclassified from accumulated
other comprehensive income (loss)			(5,568	)			-				(5,568	)
Net current period other
comprehensive income (loss)			162,124				-				162,124
Ending balance, September 30, 2016		$	337,291			$	(11,794	)		$	325,497

(1)

All amounts are net of tax.

(2)

The pretax amounts reclassified from accumulated other comprehensive income (loss), $3,499 and $8,566, are included in net realized investment gains and losses and the related tax expenses, $1,225 and $2,998, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2016, respectively.

	Unrealized Gains
	and Losses on
	Fixed Maturities
	and Equity				Defined
	Securities (1)(2)				Benefit Plans (1)				Total (1)

Beginning balance, July 1, 2015		$	223,786			$	(12,953	)		$	210,833
Other comprehensive income (loss)
before reclassifications			3,836				-				3,836
Amounts reclassified from accumulated
other comprehensive income (loss)			(1,004	)			-				(1,004	)
Net current period other
comprehensive income (loss)			2,832				-				2,832
Ending balance, September 30, 2015		$	226,618			$	(12,953	)		$	213,665

Beginning balance, January 1, 2015		$	297,554			$	(12,953	)		$	284,601
Other comprehensive income (loss)
before reclassifications			(64,979	)			-				(64,979	)
Amounts reclassified from accumulated
other comprehensive income (loss)			(5,957	)			-				(5,957	)
Net current period other
comprehensive income (loss)			(70,936	)			-				(70,936	)
Ending balance, September 30, 2015		$	226,618			$	(12,953	)		$	213,665

(1)

All amounts are net of tax.

(2)

The pretax amounts reclassified from accumulated other comprehensive income (loss), $1,545 and $9,165, are included in net realized investment gains and losses and the related tax expenses, $541 and $3,208, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2015, respectively.

Comparative information for elements that are not required to be reclassified in their entirety to net income in the same reporting period is located in “Note 2 -- Investments -- Unrealized Gains and Losses on Fixed Maturities and Equity Securities”.

Adopted Accounting Standards

Adopted Accounting Standards

Presentation of Debt Issuance Costs

Effective January 1, 2016, the Company adopted accounting guidance which was issued to simplify the presentation of costs incurred to issue debt securities. The guidance requires debt issuance costs associated with specific debt securities to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Costs incurred related to line of credit arrangements continue to be presented as an asset in the consolidated balance sheet. Also, the guidance does not affect the recognition and measurement of debt issuance costs. The guidance required retrospective application. As a result of this adoption, the following items in the Company’s December 31, 2015 Consolidated Balance Sheet were each reduced by $2,371: Other Assets, Total Assets, Long-term Debt, Total Liabilities and Total Liabilities and Shareholders’ Equity. Net income per share (basic and diluted) did not change as a result of the adopted accounting change.