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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2016, these Level 3 invested assets comprised 2.8% 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
September 30, 2016
Financial Assets
Investments
Fixed maturities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities		$	472,156			$	472,156				$	-				$	468,694				$	3,462
Other, including
U.S. Treasury securities			488,127				488,127					13,894					474,233					-
Municipal bonds			1,778,741				1,778,741					-					1,733,575					45,166
Foreign government bonds			79,839				79,839					-					79,839					-
Corporate bonds			2,953,338				2,953,338					7,341					2,868,376					77,621
Other mortgage-backed securities			1,721,852				1,721,852					-					1,623,165					98,687
Total fixed maturities			7,494,053				7,494,053					21,235					7,247,882					224,936
Equity securities			137,640				137,640					110,398					27,236					6
Short-term investments			214,206				214,206					213,450					756					-
Other investments			16,034				16,034					-					16,034					-
Totals			7,861,933				7,861,933					345,083					7,291,908					224,942
Financial Liabilities
Investment contract and life policy
reserves, embedded derivatives			80				80					-					80					-
Other policyholder funds,
embedded derivatives			55,179				55,179					-					-					55,179
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 nine months ended September 30, 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)
		Municipal Bonds				Corporate Bonds					Mortgage- Backed Securities(2)					Total Fixed Maturities					Equity Securities					Total
Beginning balance, July 1, 2016		$	47,647				$	73,408				$	96,581				$	217,636				$	6				$	217,642				$	47,706
Transfers into Level 3 (3)			-					10,375					7,655					18,030					-					18,030					-
Transfers out of Level 3 (3)			-					(5,967	)				(788	)				(6,755	)				-					(6,755	)				-
Total gains or losses
Net realized gains (losses)
included in net income
related to financial assets			-					1					(56	)				(55	)				-					(55	)				-
Net realized (gains) losses
included in net income
related to financial liabilities			-					-					-					-					-					-					68
Net unrealized gains (losses)
included in other
comprehensive income			(2,361	)				1,292					3,951					2,882					-					2,882					-
Purchases			-					-					-					-					-					-					-
Issuances			-					-					-					-					-					-					6,710
Sales			-					-					-					-					-					-					-
Settlements			-					-					-					-					-					-					-
Paydowns, maturities
and distributions			(120	)				(1,488	)				(5,194	)				(6,802	)				-					(6,802	)				695
Ending balance, September 30, 2016		$	45,166				$	77,621				$	102,149				$	224,936				$	6				$	224,942				$	55,179
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					21,451					32,281					68,483					-					68,483					-
Transfers out of Level 3 (3)			-					(5,967	)				(788	)				(6,755	)				-					(6,755	)				-
Total gains or losses
Net realized gains (losses)
included in net income
related to financial assets			-					(656	)				(56	)				(712	)				-					(712	)				-
Net realized (gains) losses
included in net income
related to financial liabilities			-					-					-					-					-					-					2,066
Net unrealized gains (losses)
included in other
comprehensive income			420					3,073					4,173					7,666					-					7,666					-
Purchases			-					-					-					-					-					-					-
Issuances			-					-					-					-					-					-					15,194
Sales			-					-					-					-					-					-					-
Settlements			-					-					-					-					-					-					-
Paydowns, maturities
and distributions			(384	)				(7,855	)				(8,927	)				(17,166	)				-					(17,166	)				(1,102	)
Ending balance, September 30, 2016		$	45,166				$	77,621				$	102,149				$	224,936				$	6				$	224,942				$	55,179

(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 and nine months ended September 30, 2016 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.

																															Financial
	Financial Assets																														Liabilities(1)
	Municipal Bonds					Corporate Bonds					Other Mortgage- Backed Securities					Total Fixed Maturities					Equity Securities					Total
Beginning balance, July 1, 2015		$	29,669				$	72,724				$	84,700				$	187,093				$	6				$	187,099				$	26,719
Transfers into Level 3 (2)			-					-					505					505					-					505					-
Transfers out of Level 3 (2)			-					-					-					-					-					-					-
Total gains or losses
Net realized gains (losses)
included in net income
related to financial assets			-					(164	)				-					(164	)				1					(163	)				-
Net realized (gains) losses
included in net income
related to financial liabilities			-					-					-					-					-					-					(1,328	)
Net unrealized gains (losses)
included in other
comprehensive income			1,464					326					167					1,957					-					1,957					-
Purchases			-					-					-					-					-					-					-
Issuances			-					-					-					-					-					-					6,899
Sales			-					-					-					-					(1	)				(1	)				-
Settlements			-					-					-					-					-					-					-
Paydowns, maturities
and distributions			(122	)				(2,638	)				(1,286	)				(4,046	)				-					(4,046	)				(535	)
Ending balance, September 30, 2015		$	31,011				$	70,248				$	84,086				$	185,345				$	6				$	185,351				$	31,755
Beginning balance, January 1, 2015		$	13,628				$	74,717				$	82,949				$	171,294				$	6				$	171,300				$	20,049
Transfers into Level 3 (2)			16,326					5,729					15,685					37,740					-					37,740					-
Transfers out of Level 3 (2)			-					(1,350	)				(9,664	)				(11,014	)				-					(11,014	)				-
Total gains or losses
Net realized gains (losses)
included in net income
related to financial assets			-					1,087					-					1,087					1					1,088					-
Net realized (gains) losses
included in net income
related to financial liabilities			-					-					-					-					-					-					(1,795	)
Net unrealized gains (losses)
included in other
comprehensive income			1,359					(758	)				(268	)				333					-					333					-
Purchases			-					-					-					-					-					-					-
Issuances			-					-					-					-					-					-					14,811
Sales			-					(476	)				-					(476	)				(1	)				(477	)				-
Settlements			-					-					-					-					-					-					-
Paydowns, maturities
and distributions			(302	)				(8,701	)				(4,616	)				(13,619	)				-					(13,619	)				(1,310	)
Ending balance, September 30, 2015		$	31,011				$	70,248				$	84,086				$	185,345				$	6				$	185,351				$	31,755

(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) Transfers into and out of Level 3 during the three and nine months ended September 30, 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
September 30, 2016
Financial Assets
Investments
Other investments			$	150,661				$	155,183				$	-				$	-				$	155,183
Financial Liabilities
Investment contract and life policy
reserves, fixed annuity contracts				4,308,100					4,179,033					-					-					4,179,033
Investment contract and life policy
reserves, account values on life contracts				78,741					82,642					-					-					82,642
Other policyholder funds				651,205					651,205					-					575,247					75,958
Long-term debt				247,146					267,634					267,634					-					-
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				246,975					252,700					252,700					-					-

X

- 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.

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X

- 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=66048111&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=66048111&loc=d3e19279-110258

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X

- 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=66048111&loc=d3e19190-110258

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