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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Deferred policy acquisition costs asset by segment | The Company's deferred policy acquisition costs (DAC) by reporting segment was as follows:
($ in thousands) |  | December 31,
|  | 2019 |  | 2018
Property and Casualty |  | $ | 28,616 |  |  | $ | 30,033 |
Supplemental |  | 1,967 |  |  | N/A |
Retirement (annuity) |  | 185,294 |  |  | 209,231 |
Life |  | 60,791 |  |  | 59,478 |
Total |  | $ | 276,668 |  |  | $ | 298,742 |
Adjustment to amortization expenses | The Company recognized the following adjustments to amortization expense as a result of evaluating actual experience and prospective assumptions, the impact of unlocking:
($ in thousands) |  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Increase (decrease) to DAC amortization expense: |  |  |  |  |  |
Retirement |  | $ | 3,480 |  |  | $ | 3,948 |  |  | $ | 1,081 |
Life |  | (267 | ) |  | 283 |  |  | (200 | )
Total |  | $ | 3,213 |  |  | $ | 4,231 |  |  | $ | 881 |
Property and equipment | The following amounts are included in Other assets in the Consolidated Balance Sheets:
($ in thousands) |  | December 31,
|  | 2019 |  | 2018
Property and equipment |  | $ | 166,583 |  |  | $ | 142,243 |
Less: accumulated depreciation |  | 106,458 |  |  | 101,267 |
Total |  | $ | 60,125 |  |  | $ | 40,976 |
Investment contract and life policy reserves | This table summarizes the Company's investment contract and policy reserves.
($ in thousands) |  | December 31,
|  | 2019 |  | 2018
Investment contract reserves |  | $ | 4,675,774 |  |  | $ | 4,555,856 |
Policy reserves |  | 1,558,678 |  |  | 1,155,337 |
Total |  | $ | 6,234,452 |  |  | $ | 5,711,193 |
Summary of guaranteed minimum death benefit | The Company regularly monitors the GMDB reserve considering fluctuations in financial markets. The Company has a relatively low exposure to GMDB risk as shown below.
($ in thousands) |  | December 31,
|  | 2019 |  | 2018
GMDB reserve |  | $ | 126 |  |  | $ | 258 |
Aggregate in-the-money death benefits under the GMDB provision |  | 29,367 |  |  | 48,083 |
Variable annuity contract value distribution based on GMDB feature: |  |  |  |
No guarantee |  | 28 | % |  | 30 | %
Return of premium guarantee |  | 67 | % |  | 65 | %
Guarantee of premium roll-up at an annual rate of 3% or 5% |  | 5 | % |  | 5 | %
Total |  | 100 | % |  | 100 | %
Stock options fair value pricing model weighted-average assumptions | The fair value of stock 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,
|  | 2019 |  | 2018 |  | 2017
Number of stock options granted |  | 282,040 |  |  | 223,208 |  |  | 222,828 |
Weighted average grant date fair value of stock options granted |  | $ | 6.26 |  |  | $ | 7.16 |  |  | $ | 6.57 |
Weighted average assumptions: |  |  |  |  |  |
Risk-free interest rate |  | 2.5 | % |  | 2.6 | % |  | 2.0 | %
Expected dividend yield |  | 2.9 | % |  | 2.6 | % |  | 2.5 | %
Expected life, in years |  | 5.0 |  |  | 4.8 |  |  | 4.9 |
Expected volatility (based on historical volatility) |  | 21.9 | % |  | 21.5 | % |  | 21.4 | %
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:
($ in thousands) |  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Basic: |  |  |  |  |  |
Net income for the period |  | $ | 184,443 |  |  | $ | 18,343 |  |  | $ | 169,459 |
Weighted average number of common shares during the period (in thousands) |  | 41,738 |  |  | 41,570 |  |  | 41,365 |
Net income per share - basic |  | $ | 4.42 |  |  | $ | 0.44 |  |  | $ | 4.10 |
Diluted: |  |  |  |  |  |
Net income for the period |  | $ | 184,443 |  |  | $ | 18,343 |  |  | $ | 169,459 |
Weighted average number of common shares during the period (in thousands) |  | 41,738 |  |  | 41,570 |  |  | 41,365 |
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities (in thousands): |  |  |  |  |  |
Stock options |  | 79 |  |  | 100 |  |  | 112 |
CSUs related to deferred compensation for employees |  | — |  |  | 25 |  |  | 25 |
RSUs related to incentive compensation |  | 132 |  |  | 199 |  |  | 63 |
Total common and common equivalent shares adjusted to calculate diluted earnings per share (in thousands) |  | 41,949 |  |  | 41,894 |  |  | 41,565 |
Net income per share - diluted |  | $ | 4.40 |  |  | $ | 0.44 |  |  | $ | 4.08 |
Components of comprehensive income | The components of comprehensive income (loss) were as follows:
($ in thousands) |  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Net income |  | $ | 184,443 |  |  | $ | 18,343 |  |  | $ | 169,459 |
Other comprehensive income (loss): |  |  |  |  |  |
Change in net unrealized investment gains (losses) on securities: |  |  |  |  |  |
Net unrealized investment gains (losses) on securities arising during the period |  | 327,363 |  |  | (275,094 | ) |  | 105,475 |
Less: reclassification adjustment for net investment gains (losses) included in income before income tax |  | 157,423 |  |  | (16,363 | ) |  | (4,863 | )
Total, before tax |  | 169,940 |  |  | (258,731 | ) |  | 110,338 |
Income tax expense (benefit) |  | 36,433 |  |  | (55,495 | ) |  | 35,933 |
Total, net of tax |  | 133,507 |  |  | (203,236 | ) |  | 74,405 |
Change in net funded status of benefit plans: |  |  |  |  |  |
Before tax |  | 1,805 |  |  | 1,294 |  |  | 1,461 |
Income tax expense |  | 387 |  |  | 262 |  |  | 727 |
Total, net of tax |  | 1,418 |  |  | 1,032 |  |  | 734 |
Total comprehensive income (loss) |  | $ | 319,368 |  |  | $ | (183,861 | ) |  | $ | 244,598 |
Accumulated other comprehensive income (loss) | The following table reconciles the components of AOCI for the periods indicated.
($ in thousands) |  | Net Unrealized Investment Gains (Losses) on Securities (1)(2) |  | Net Funded Status of Benefit Plans (1) |  | Total (1)(3)
Beginning balance, January 1, 2019 |  | $ | 96,941 |  |  | $ | (12,185 | ) |  | $ | 84,756 |
Other comprehensive income (loss) before reclassifications |  | 257,871 |  |  | 1,418 |  |  | 259,289 |
Amounts reclassified from AOCI |  | (124,364 | ) |  | — |  |  | (124,364 | )
Net current period other comprehensive income (loss) |  | 133,507 |  |  | 1,418 |  |  | 134,925 |
Ending balance, December 31, 2019 |  | $ | 230,448 |  |  | $ | (10,767 | ) |  | $ | 219,681 |
Beginning balance, January 1, 2018 |  | $ | 300,177 |  |  | $ | (13,217 | ) |  | $ | 286,960 |
Other comprehensive income (loss) before reclassifications |  | (201,122 | ) |  | 1,032 |  |  | (200,090 | )
Amounts reclassified from AOCI |  | 12,927 |  |  | — |  |  | 12,927 |
Cumulative effect of change in accounting principle (4) |  | (15,041 | ) |  | — |  |  | (15,041 | )
Net current period other comprehensive income (loss) |  | (203,236 | ) |  | 1,032 |  |  | (202,204 | )
Ending balance, December 31, 2018 |  | $ | 96,941 |  |  | $ | (12,185 | ) |  | $ | 84,756 |
Beginning balance, January 1, 2017 |  | $ | 175,738 |  |  | $ | (11,817 | ) |  | $ | 163,921 |
Other comprehensive income (loss) before reclassifications |  | 71,244 |  |  | 734 |  |  | 71,978 |
Amounts reclassified from AOCI |  | 3,161 |  |  | — |  |  | 3,161 |
Reclassification of deferred taxes (3) |  | 50,034 |  |  | (2,134 | ) |  | 47,900 |
Net current period other comprehensive income (loss) |  | 124,439 |  |  | (1,400 | ) |  | 123,039 |
Ending balance, December 31, 2017 |  | $ | 300,177 |  |  | $ | (13,217 | ) |  | $ | 286,960 |
(1) All amounts are net of tax.
(2) | The pretax amounts reclassified from AOCI, $157.4 million, $(16.4) million and $(4.9) million, are included in net investment gains (losses) and the related tax expenses, $33.1 million, $(3.4) million and $(1.7) million, are included in income tax expense in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017, respectively.
(3) | For the period ended December 31, 2017, deferred taxes attributable to net unrealized investment gains (losses) on fixed maturity and equity securities and Defined benefit plans were re-measured as a result of the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA). ASC 740, Income Taxes, requires that the income tax effect from the deferred tax re-measurement be reflected in the Company’s income tax expense, even if the deferred taxes being re-measured were originally established through AOCI. The mismatch between deferred taxes established in AOCI at 35% and re-measuring these same deferred taxes at 21% through income tax expense results in stranded deferred taxes in AOCI. On February 14, 2018, the Financial Accounting Standards Board (FASB) issued accounting guidance that permits recognition of a reclassification adjustment between AOCI and Retained earnings for stranded deferred tax amounts related to the reduced corporate tax rate enacted under the TCJA. As permitted under its provisions, the Company early adopted the accounting guidance effective for the quarterly period that ended December 31, 2017 and has elected to reclassify the stranded deferred tax amounts. The impact from early adoption resulted in an increase to AOCI and a reduction to Retained earnings of approximately $47.9 million; representing the stranded deferred tax liabilities of $50.0 million and $(2.1) million for net unrealized investment gains (losses) on fixed maturity and equity securities and Defined benefit plans, respectively.
(4) | The Company adopted guidance on January 1, 2018 that resulted in reclassifying $15.0 million of after tax net unrealized gains on equity securities from AOCI to Retained earnings.

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