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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017, Level 3 invested assets comprised 3.1% 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, 2017
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities		$	609,807			$	609,807			$	-			$	605,863			$	3,944
Other, including
U.S. Treasury securities			531,308				531,308				13,619				517,689				-
Municipal bonds			1,777,427				1,777,427				-				1,723,965				53,462
Foreign government bonds			99,686				99,686				-				99,686				-
Corporate bonds			2,837,173				2,837,173				14,173				2,740,505				82,495
Other mortgage-backed securities			1,655,349				1,655,349				-				1,546,499				108,850
Total fixed maturity securities			7,510,750				7,510,750				27,792				7,234,207				248,751
Equity securities			156,975				156,975				102,573				54,396				6
Short-term investments			81,064				81,064				79,859				1,205				-
Other investments			21,432				21,432				-				21,432				-
Totals		$	7,770,221			$	7,770,221			$	210,224			$	7,311,240			$	248,757
Financial Liabilities
Investment contract and life policy
reserves, embedded derivatives		$	236			$	236			$	-			$	236			$	-
Other policyholder funds,
embedded derivatives			64,261				64,261				-				-				64,261
December 31, 2016
Financial Assets
Investments
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities		$	614,891			$	614,891			$	-			$	611,476			$	3,415
Other, including
U.S. Treasury securities			467,143				467,143				13,631				453,512				-
Municipal bonds			1,769,397				1,769,397				-				1,722,900				46,497
Foreign government bonds			98,669				98,669				-				98,669				-
Corporate bonds			2,810,221				2,810,221				13,532				2,736,498				60,191
Other mortgage-backed securities			1,696,387				1,696,387				-				1,595,143				101,244
Total fixed maturity securities			7,456,708				7,456,708				27,163				7,218,198				211,347
Equity securities			141,649				141,649				98,632				43,011				6
Short-term investments			44,918				44,918				44,167				-				751
Other investments			20,194				20,194				-				20,194				-
Totals		$	7,663,469			$	7,663,469			$	169,962			$	7,281,403			$	212,104
Financial Liabilities
Investment contract and life policy
reserves, embedded derivatives		$	158			$	158			$	-			$	158			$	-
Other policyholder funds,
embedded derivatives			59,393				59,393				-				-				59,393

Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis

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						Other Mortgage- Backed Securities (2)					Total Fixed Maturity Securities					Equity Securities					Short-term Investments					Total
Beginning balance, January 1, 2017			$	46,497				$	60,191					$	104,659				$	211,347				$	6				$	751				$	212,104				$	59,393
Transfers into Level 3 (3)				5,214					29,918						15,039					50,171					-					-					50,171					-
Transfers out of Level 3 (3)				-					(6,110	)					-					(6,110	)				-					(751	)				(6,861	)				-
Total gains or losses
Net realized investment gains
(losses) included in net
income related to
financial assets				-					-						-					-					-					-					-					-
Net realized (gains) losses
included in net income
related to financial liabilities				-					-						-					-					-					-					-					2,308
Net unrealized investment gains
(losses) included in other
comprehensive income				1,871					96						(771	)				1,196					-					-					1,196					-
Purchases				-					-						-					-					-					-					-					-
Issuances				-					-						-					-					-					-					-					3,389
Sales				-					-						-					-					-					-					-					-
Settlements				-					-						-					-					-					-					-					-
Paydowns, maturities
and distributions				(120	)				(1,600	)					(6,133	)				(7,853	)				-					-					(7,853	)				(829	)
Ending balance, March 31, 2017			$	53,462				$	82,495					$	112,794				$	248,751				$	6				$	-				$	248,757				$	64,261
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 investment 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 investment 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

(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) 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, 2017 and 2016 were attributable to changes in the availability of observable market information for individual fixed maturity securities and short-term investments. 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 Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. 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, 2017
Financial Assets
Investments
Other investments			$	151,537				$	156,089				$	-				$	-				$	156,089
Financial Liabilities
Investment contract and life policy
reserves, fixed annuity contracts				4,408,288					4,317,991					-					-					4,317,991
Investment contract and life policy
reserves, account values on life contracts				80,484					85,945					-					-					85,945
Other policyholder funds				647,134					647,134					-					575,342					71,792
Long-term debt				247,273					259,698					259,698					-					-
December 31, 2016
Financial Assets
Investments
Other investments			$	151,965				$	156,536				$	-				$	-				$	156,536
Financial Liabilities
Investment contract and life policy
reserves, fixed annuity contracts				4,360,456					4,280,528					-					-					4,280,528
Investment contract and life policy
reserves, account values on life contracts				79,591					85,066					-					-					85,066
Other policyholder funds				649,557					649,557					-					575,253					74,304
Long-term debt				247,209					248,191					248,191					-					-

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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