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Notes and Loan Payable and Amounts Due Under Repurchase Agreements | 6 Months Ended
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Jun. 30, 2017
Debt Disclosure [Abstract] |
Notes and Loan Payable and Amounts Due Under Repurchase Agreements | Notes and Loan Payable and Amounts Due Under Repurchase Agreements Notes and loan payable includes the following:
| June 30, 2017 |  | December 31, 2016
| (Dollars in thousands)
Senior notes due 2021 |  |  |
Principal | $ | 400,000 |  |  | $ | 400,000 |
Unamortized debt issue costs | (5,187 | ) |  | (5,733 | )
Senior notes due 2027 |  |  |
Principal | 500,000 |  |  | — |
Unamortized debt issue costs | (5,804 | ) |  | — |
Unamortized discount | (349 | ) |  | — |
Term loan due 2019 |  |  |
Principal | — |  |  | 100,000 |
Unamortized debt issue costs | — |  |  | (512 | )
| $ | 888,660 |  |  | $ | 493,755 |
On June 16, 2017, we issued $500 million aggregate principal amount of senior unsecured notes due 2027 which bear interest at 5.0% per year and will mature on June 15, 2027 (the "2027 Notes"). The 2027 Notes were issued at a $0.3 million discount, which is being amortized over the term of the 2027 Notes using the effective interest method. Contractual interest is payable semi-annually in arrears each June 15th and December 15th. The initial transaction fees and costs totaling $5.8 million were capitalized as deferred financing costs and are being amortized over the term of the 2027 Notes using the effective interest method. We used the net proceeds from the issuance of the 2027 Notes to prepay our $100 million term loan that was scheduled to mature in 2019 on June 16, 2017, and to redeem our $400 million notes due 2021 (the “2021 Notes”) on July 17, 2017. See Note 9 for further details surrounding the early redemption of the 2021 Notes. As part of our investment strategy, we enter into securities repurchase agreements (short-term collateralized borrowings). When we do borrow cash on these repurchase agreements, we pledge collateral in the form of debt securities with fair values approximately equal to the amount due and we use the cash to purchase debt securities ahead of the time we collect the cash from selling annuity policies to avoid a lag between the investment of funds and the obligation to credit interest to policyholders. We earn investment income on the securities purchased with these borrowings at a rate in excess of the cost of these borrowings. Such borrowings averaged $36.1 million and $69.1 million during the three and six months ended June 30, 2017, respectively, and the maximum amount borrowed was $274.5 million during the six months ended June 30, 2017. We had no borrowings under repurchase agreements during the three and six months ended June 30, 2016. The weighted average interest rate on amounts due under repurchase agreements was 1.02% and 0.74% for the three and six months ended June 30, 2017.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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