Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | UFCS | |
Entity Registrant Name | UNITED FIRE GROUP INC | |
Entity Central Index Key | 101,199 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 25,050,267 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fixed maturities | ||
Held-to-maturity, at amortized cost (fair value $150 in 2018 and $150 in 2017) | $ 150 | $ 150 |
Available-for-sale, at fair value (amortized cost $1,811,473 in 2018 and $1,516,610 in 2017) | 1,792,019 | 1,535,070 |
Trading securities, at fair value (amortized cost $12,704 in 2018 and $14,582 in 2017) | 14,705 | 16,842 |
Equity securities at fair value (cost $64,092 in 2018 and $63,275 in 2017) | 260,979 | 287,344 |
Mortgage loans | 9,896 | 0 |
Other long-term investments | 43,949 | 49,352 |
Short-term investments | 175 | 175 |
Total investments | 2,121,873 | 1,888,933 |
Cash and cash equivalents | 100,840 | 95,562 |
Accrued investment income | 15,716 | 13,841 |
Premiums receivable (net of allowance for doubtful accounts of $988 in 2018 and $1,255 in 2017) | 380,242 | 328,513 |
Deferred policy acquisition costs | 95,065 | 88,102 |
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $53,603 in 2018 and $51,603 in 2017) | 80,128 | 68,992 |
Reinsurance receivables and recoverables | 58,810 | 63,194 |
Prepaid reinsurance premiums | 4,902 | 3,749 |
Deferred tax asset | 4,482 | 0 |
Income taxes receivable | 0 | 6,031 |
Goodwill and intangible assets | 23,606 | 23,971 |
Other assets | 16,512 | 16,409 |
Assets held for sale | 0 | 1,586,134 |
TOTAL ASSETS | 2,902,176 | 4,183,431 |
Liabilities | ||
Losses and loss settlement expenses | 1,240,847 | 1,224,183 |
Unearned premiums | 517,732 | 465,391 |
Accrued expenses and other liabilities | 173,458 | 167,396 |
Income taxes payable | 5,539 | 0 |
Deferred income taxes | 0 | 5,953 |
Liabilities held for sale | 0 | 1,347,135 |
TOTAL LIABILITIES | 1,937,576 | 3,210,058 |
Stockholders’ Equity | ||
Common stock, $0.001 par value; authorized 75,000,000 shares; 25,043,967 and 24,916,806 shares issued and outstanding in 2018 and 2017, respectively | 25 | 25 |
Additional paid-in capital | 199,442 | 196,334 |
Retained earnings | 824,431 | 608,700 |
Accumulated other comprehensive income (loss), net of tax | (59,298) | 168,314 |
TOTAL STOCKHOLDERS’ EQUITY | 964,600 | 973,373 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,902,176 | $ 4,183,431 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, held-to-maturity securities, fair value | $ 150 | $ 150 |
Fixed maturities, available-for-sale securities, amortized cost | 1,811,473 | 1,516,610 |
Fixed maturities, trading securities, amortized cost | 12,704 | 14,582 |
Equity securities, amortized cost | 64,092 | 63,275 |
Allowance for doubtful accounts | 988 | 1,255 |
Property and equipment accumulated depreciation | $ 53,603 | $ 51,603 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,043,967 | 24,916,806 |
Common stock, shares outstanding (in shares) | 25,043,967 | 24,916,806 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Net premiums earned | $ 256,853 | $ 245,222 | $ 502,020 | $ 481,666 |
Investment income, net of investment expenses | 17,249 | 12,184 | 30,741 | 24,769 |
Net realized investment gains (losses) (includes reclassifications for net unrealized investment gains/(losses) on available-for-sale securities of ($196) and ($159) in 2018 and $1,975 and $5,380 in 2017; previously included in accumulated other comprehensive income) | 1,297 | 1,081 | (6,567) | 3,330 |
Total revenues | 275,399 | 258,487 | 526,194 | 509,765 |
Benefits, Losses and Expenses | ||||
Losses and loss settlement expenses | 189,146 | 188,596 | 333,874 | 345,148 |
Amortization of deferred policy acquisition costs | 50,810 | 51,398 | 100,449 | 101,859 |
Other underwriting expenses (includes reclassifications for employee benefit costs of $1,661 and $3,321 in 2018 and $1,352 and $2,704 in 2017; previously included in accumulated other comprehensive income) | 37,252 | 22,824 | 72,107 | 44,083 |
Total benefits, losses and expenses | 277,208 | 262,818 | 506,430 | 491,090 |
Income (loss) from continuing operations before income taxes | (1,809) | (4,331) | 19,764 | 18,675 |
Federal income tax benefit (includes reclassifications of $390 and $731 in 2018 and ($219) and ($937) in 2017; previously included in accumulated other comprehensive income) | (1,966) | (4,440) | (757) | (18) |
Income from continuing operations | 157 | 109 | 20,521 | 18,693 |
Income (loss) from discontinued operations, net of taxes | 0 | 2,849 | (1,912) | 4,201 |
Gain on sale of discontinued operations, net of taxes | 0 | 0 | 27,307 | 0 |
Net income | 157 | 2,958 | 45,916 | 22,894 |
Other comprehensive income | ||||
Change in net unrealized appreciation on investments | (6,199) | 30,653 | (58,013) | 45,619 |
Change in liability for underfunded employee benefit plans | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before tax and reclassification adjustments | (6,199) | 30,653 | (58,013) | 45,619 |
Income tax effect | 1,301 | (10,729) | 12,182 | (15,967) |
Other comprehensive income (loss), after tax, before reclassification adjustments | (4,898) | 19,924 | (45,831) | 29,652 |
Reclassification adjustment for net realized investment (gains) losses included in income | 196 | (1,975) | 159 | (5,380) |
Reclassification adjustment for employee benefit costs included in expense | 1,661 | 1,352 | 3,321 | 2,704 |
Total reclassification adjustments, before tax | 1,857 | (623) | 3,480 | (2,676) |
Income tax effect | (390) | 219 | (731) | 937 |
Total reclassification adjustments, after tax | 1,467 | (404) | 2,749 | (1,739) |
Comprehensive income (loss) | $ (3,274) | $ 22,478 | $ 2,834 | $ 50,807 |
Diluted weighted average common shares outstanding (in shares) | 25,611,773 | 25,624,686 | 25,582,708 | 25,752,525 |
Earnings per common share from continuing operations: | ||||
Basic (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.82 | $ 0.74 |
Diluted (in dollars per share) | 0.01 | 0.01 | 0.80 | 0.73 |
Earnings per common share: | ||||
Basic (in dollars per share) | 0.01 | 0.12 | 1.84 | 0.91 |
Diluted (in dollars per share) | $ 0.01 | $ 0.12 | $ 1.80 | $ 0.89 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Reclassifications for net unrealized gains on available-for-sale securities | $ (196) | $ 1,975 | $ (159) | $ 5,380 |
Reclassification adjustment for employee benefit costs included in expense | 1,661 | 1,352 | 3,321 | 2,704 |
Reclassifications adjustments - tax | $ 390 | $ (219) | $ 731 | $ (937) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss), net of tax | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | $ (191,244) | $ 191,244 | $ (191,244) | ||||
Balance, beginning of year at Dec. 31, 2017 | 973,373 | $ 25 | $ 196,334 | 608,700 | 168,314 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares repurchased | 0 | (5,404) | |||||
Shares issued for stock-based awards | 0 | 5,794 | |||||
Compensation expense and related tax benefit for stock-based award grants | 2,718 | ||||||
Net income | 45,916 | 45,916 | |||||
Dividends on common stock ($0.59 per share) | (14,715) | ||||||
Change in net unrealized investment appreciation and depreciation of discontinued operations, sold | (6,714) | (38,991) | [1] | ||||
Change in liability for underfunded employee benefit plans | [2] | 2,623 | |||||
All other changes in stockholders’ equity accounts | (54,689) | ||||||
Balance, end of period at Jun. 30, 2018 | 964,600 | 25 | 199,442 | 824,431 | (59,298) | ||
Balance, beginning of year at Mar. 31, 2018 | (55,867) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 157 | ||||||
Balance, end of period at Jun. 30, 2018 | $ 964,600 | $ 25 | $ 199,442 | $ 824,431 | $ (59,298) | ||
[1] | The change in net unrealized appreciation is net of reclassification adjustments and income taxes. | ||||||
[2] | The change in liability for underfunded employee benefit plans is net of reclassification adjustments and income taxes. |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Shares repurchased (in shares) | 120,372 |
Shares issued for stock-based awards (in shares) | 246,633 |
Dividends on common stock, per share (in dollars per share) | $ / shares | $ 0.59 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 45,916 | $ 22,894 |
Less net income (loss) from discontinued operations, net of taxes | (1,912) | 4,201 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Net accretion of bond premium | 4,324 | 4,517 |
Depreciation and amortization | 2,316 | 2,333 |
Stock-based compensation expense | 2,718 | 2,254 |
Net realized investment (gains) losses | 6,567 | (3,330) |
Net cash flows from equity and trading investments | 21,839 | (1,524) |
Deferred income tax benefit | (8,836) | (2,833) |
Changes in: | ||
Accrued investment income | (1,875) | (643) |
Premiums receivable | (51,729) | (55,664) |
Deferred policy acquisition costs | (6,963) | (8,041) |
Reinsurance receivables | 4,384 | (4,431) |
Prepaid reinsurance premiums | (1,153) | (184) |
Income taxes receivable | 6,031 | 6,300 |
Other assets | (102) | (484) |
Losses and loss settlement expenses | 16,664 | 56,582 |
Unearned premiums | 52,341 | 58,542 |
Accrued expenses and other liabilities | 9,383 | 14,460 |
Income taxes payable | 5,539 | 0 |
Deferred income taxes | (14,054) | (2,308) |
Other, net | 1,253 | 2,927 |
Cash from operating activities - continuing operations | 48,647 | 68,473 |
Cash from operating activities - discontinued operations | 4,023 | 24,968 |
Cash from operating activities - gain on sale of discontinued operations | (34,851) | 0 |
Total adjustments | 17,819 | 93,441 |
Net cash provided by operating activities | 65,647 | 112,134 |
Cash Flows From Investing Activities | ||
Proceeds from sale of available-for-sale investments | 23,994 | |
Proceeds from sale of available-for-sale investments | 1,096 | |
Proceeds from call and maturity of available-for-sale investments | 60,651 | 76,183 |
Proceeds from short-term and other investments | 5,816 | 3,185 |
Proceeds from the sale of discontinued operations | 276,055 | 0 |
Purchase of available-for-sale investments | (383,633) | (112,472) |
Purchase of mortgage loans | (9,896) | 0 |
Purchase of short-term and other investments | (1,995) | (2,852) |
Net purchases and sales of property and equipment | (13,012) | (3,861) |
Cash from investing activities - continuing operations | (42,020) | (38,721) |
Cash from investing activities - discontinued operations | 14,343 | 13,956 |
Net cash used in investing activities | (27,677) | (24,765) |
Cash Flows From Financing Activities | ||
Payment of cash dividends | (14,716) | (13,380) |
Repurchase of common stock | (5,404) | (21,184) |
Issuance of common stock | 5,794 | 2,207 |
Cash from financing activities - continuing operations | (14,326) | (32,357) |
Cash from financing activities - discontinued operations | (11,547) | (35,444) |
Net cash used in financing activities | (25,873) | (67,801) |
Net Change in Cash and Cash Equivalents | 12,097 | 19,568 |
Less: increase in cash and cash equivalents - discontinued operations | (6,819) | (3,480) |
Net increase in cash and cash equivalents - continuing operations | 5,278 | 16,088 |
Cash and Cash Equivalents at Beginning of Period - Continuing Operations | 95,562 | 89,194 |
Cash and Cash Equivalents at End of Period - Continuing Operations | $ 100,840 | $ 105,282 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Business United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance through a network of independent agencies. Our insurance company subsidiaries are licensed as a property and casualty insurer in 46 states and the District of Columbia. Discontinued Operations We have historically reported our operations in two business segments: property and casualty insurance and life insurance. On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, the life insurance business, previously a separate segment, was considered held for sale and reported as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented in this Form 10-Q (collectively, the "Consolidated Financial Statements"). Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, as applicable, unless otherwise noted. For more information, refer to Note 11. Discontinued Operations. Basis of Presentation The unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K for the year ended December 31, 2017, including certain financial statement footnote disclosures, is not required by the rules and regulations of the SEC for interim financial reporting and have been condensed or omitted. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; future policy benefits and losses, and loss settlement expenses; and pension and postretirement benefit obligations. Certain prior year amounts have been reclassified to conform to the current year presentation. Management of UFG believes the accompanying unaudited Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All significant intercompany transactions have been eliminated in consolidation. The results reported for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017 . The review report of Ernst & Young LLP as of June 30, 2018 and for the three- and six-month periods ended June 30, 2018 and 2017 accompanies the unaudited Consolidated Financial Statements included in Part I, Item 1 "Financial Statements." Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less. For the six-month periods ended June 30, 2018 and 2017 , we made payments for income taxes for continuing operations totaling $15,037 and $7,628 , respectively. We received a tax refund of $1,503 and $10,000 for the six-month periods ended June 30, 2018 and 2017, respectively. For the six-month periods ended June 30, 2018 and 2017 , we made no interest payments (excluding interest credited to policyholders’ accounts). Deferred Policy Acquisition Costs ("DAC") Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC, including the related amortization recognized for the six-month period ended June 30, 2018 . Continuing Operations Discontinued Operations Property & Casualty Insurance Life Insurance Total Recorded asset at beginning of period $ 88,102 $ 71,151 $ 159,253 Underwriting costs deferred 107,412 1,376 108,788 Amortization of deferred policy acquisition costs (100,449 ) (1,895 ) (102,344 ) Ending unamortized deferred policy acquisition costs $ 95,065 $ 70,632 $ 165,697 Impact of unrealized gains and losses on available-for-sale securities — 7,274 7,274 Sale of discontinued operations — (77,906 ) (77,906 ) Recorded asset at June 30, 2018 $ 95,065 $ — $ 95,065 Property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. For traditional life insurance policies, DAC is amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits. For non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised. The effect on DAC that results from the assumed realization of unrealized gains (losses) on investments allocated to non-traditional life insurance business is recognized with an offset to net unrealized investment appreciation as of the balance sheet date. The impact of unrealized gains and losses on available-for-sale securities decreased the DAC asset by $6,294 at December 31, 2017 . There was no impact of unrealized gains and losses on available-for-sale securities on the DAC asset at June 30, 2018 because the non-traditional life insurance business is part of discontinued operations, which was sold on March 30, 2018. Income Taxes The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of June 30, 2018 we had not completed accounting for the tax effects of enactment of the Tax Act, however for certain items, we have made a reasonable estimate of the effects on our deferred tax balances. For other items where we could not make a reasonable estimate, we are still using existing accounting guidance and the provisions of the tax laws that were in place prior to the enactment. The Company will continue to refine this estimated provisional adjustment as we gain a more thorough understanding of the effects of enactment of the Tax Act on the Company, and the Company will take future guidance into consideration when it becomes available. Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. We reported consolidated federal income tax expense from continuing and discontinued operations of $7,350 and $2,250 for the six-month periods ended June 30, 2018 and 2017 , respectively. Our effective tax rate is different than the federal statutory rate of 21 percent , due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income. The Company performs a quarterly review of its tax positions and makes a determination of whether it is more likely than not that the tax position will be sustained upon examination. If, based on review, it appears not more likely than not that the positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did no t recognize any liability for unrecognized tax benefits at June 30, 2018 or December 31, 2017 . In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense. With regard to the sale of the life insurance subsidiary, federal income taxes were allocated to continuing and discontinued operations in accordance with the Company’s tax allocation agreement and the terms of the definitive agreement related to the sale. We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2014. Subsequent Events In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. On July 24, 2018, the Company's Board of Directors declared a special cash dividend of $3.00 per share or a total of approximately $75,000 payable August 20, 2018 to shareholders of record as of August 3, 2018. This dividend will be recorded in the Company's financial statements in the three months ended September 30, 2018. The Company concluded there are no other material subsequent events or transactions that have occurred after the balance sheet date through the date on which the financial statements were issued. Recently Issued Accounting Standards Accounting Standards Adopted in 2018 Revenue Recognition In May 2014, the FASB issued comprehensive new guidance on revenue recognition which supersedes nearly all existing revenue recognition guidance under GAAP. The new guidance requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. Insurance contracts are not within the scope of this new guidance. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the guidance as of January 1, 2018. The adoption of the new guidance had no impact on the Company's reporting and disclosure of net premiums earned from insurance contracts, net investment income or net realized gains and losses, as these revenue streams are not within the scope of this new guidance. The remaining revenue streams are immaterial and not impacted by the new standard. Financial Instruments In January 2016, the FASB issued guidance updating certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (for example, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The new guidance also simplifies the impairment process for equity investments without readily determinable fair values. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a reclassification from accumulated other comprehensive income to retained earnings of $191,244 after tax, which is equal to the amount of net unrealized gains and losses on available-for-sale equity securities on January 1, 2018. Also, in the three- and six-month periods ended June 30, 2018, the Company recognized an after-tax net realized investment gain of $241 and an after-tax net realized investment loss of $7,879 , respectively, in net income from the change in value of equity securities due to the adoption of this new accounting guidance. Statement of Cash Flows - Classification of Certain Cash Receipts and Payments In August 2016, the FASB issued an update that clarifies the classification of certain cash receipts and payments in the Statement of Cash Flows. The update addresses eight existing cash flow issues by clarifying the correct classification to establish uniformity in practice. The updated guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Defined Benefit Retirement Plan Cost In March 2017, the FASB issued guidance on the presentation of net periodic benefit costs of defined benefit retirement benefit plans in the Statements of Income. The new guidance requires the service cost component of net periodic benefit cost of defined benefit plans to be presented in the same line in the Statements of Income as other employee compensation expenses. Also, under the new guidance, the service cost component of the net periodic benefit costs will be the only portion of costs subject to be capitalized in assets. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a change in the capitalization of deferred acquisition costs to only include the pension and post retirement service costs in place of the total net periodic benefit costs. The adoption had an immaterial impact on the Company's financial position and results of operations. Additionally, the adoption did not impact the Company's presentation in the Statements of Income as all net periodic benefit costs and employee compensation expenses are included within the same category in the Statements of Income. Share-Based Payments In May 2017, the FASB issued new guidance which clarifies and addresses the diversity in practice when there is a change in the terms of a share-based payment award. The updated guidance clarifies when to use modification accounting when there is a change in the terms of a share-based payment and provides three conditions where modification accounting should not be applied. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Pending Adoption of Accounting Standards Leases In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability, for all leases with terms greater than 12 months, on their balance sheets. The lease liability will be based on the present value of the future lease payments and the asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company will adopt the new guidance using the package of practical expedients as of January 1, 2019. The Company has created an inventory of its operating leases and has calculated the undiscounted future minimum lease payments, which are disclosed in Note 13. Lease Commitments of the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The undiscounted future minimum lease payments at December 31, 2017 is $22.5 million , which represents less than 1.0 percent of the Company's total assets at December 31, 2017. The Company plans to use their incremental borrowing rate of their credit facility described in Note 9. Credit Facility of this Form 10-Q, as the discount rate for calculating the minimum lease payments. The Company is reviewing and updating its processes and controls under the new guidance. Management currently believes that the adoption will not have a significant impact on the Company's financial position and results of operations. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2020 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2021 and is currently evaluating the impact on the Company's financial position, results of operations and key processes. Income Taxes - Intra-entity Transfers In October 2016, the FASB issued new guidance on the income tax treatment of intra-entity transfers. The new guidance replaces the current guidance which prohibits the recognition of current and deferred income taxes of intra-entity transfers until the asset is sold externally. Under the new guidance, the exemption is eliminated and income taxes will be recognized on transfers of intra-entity assets. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2019 and is currently evaluating the impact on the Company's financial position and results of operations. Goodwill In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations. |
Summary of Investments
Summary of Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Summary of Investments | SUMMARY OF INVESTMENTS Fair Value of Investments A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of June 30, 2018 and December 31, 2017 , is as follows: June 30, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Bonds Corporate bonds - financial services $ 150 $ — $ — $ 150 Total Held-to-Maturity Fixed Maturities $ 150 $ — $ — $ 150 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 120,272 $ 23 $ 341 $ 119,954 U.S. government agency 196,348 633 2,712 194,269 States, municipalities and political subdivisions General obligations: Midwest 99,821 893 1,053 99,661 Northeast 40,913 385 187 41,111 South 119,745 612 2,040 118,317 West 110,147 916 1,492 109,571 Special revenue: Midwest 143,606 1,368 1,208 143,766 Northeast 63,889 426 1,431 62,884 South 247,056 1,414 4,457 244,013 West 147,388 1,251 2,469 146,170 Foreign bonds 7,751 72 — 7,823 Public utilities 49,629 196 1,141 48,684 Corporate bonds Energy 22,477 111 316 22,272 Industrials 42,286 143 486 41,943 Consumer goods and services 44,100 106 680 43,526 Health care 13,071 65 159 12,977 Technology, media and telecommunications 26,632 43 790 25,885 Financial services 73,501 182 1,746 71,937 Mortgage-backed securities 8,382 28 223 8,187 Collateralized mortgage obligations Government national mortgage association 73,482 181 2,650 71,013 Federal home loan mortgage corporation 111,082 136 2,044 109,174 Federal national mortgage association 46,657 46 1,305 45,398 Asset-backed securities 3,238 325 79 3,484 Total Available-for-Sale Fixed Maturities $ 1,811,473 $ 9,555 $ 29,009 $ 1,792,019 December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Bonds Corporate bonds - financial services $ 150 $ — $ — $ 150 Mortgage-backed securities 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 17,073 $ 4 $ 186 $ 16,891 U.S. government agency 121,574 1,311 717 122,168 States, municipalities and political subdivisions General obligations: Midwest 107,689 2,446 439 109,696 Northeast 47,477 1,174 10 48,641 South 139,870 2,462 813 141,519 West 111,123 2,351 463 113,011 Special revenue: Midwest 155,475 3,620 351 158,744 Northeast 79,028 1,351 619 79,760 South 260,145 5,218 1,851 263,512 West 156,576 2,929 1,198 158,307 Foreign bonds 51,361 1,441 49 52,753 Public utilities 206,028 3,386 270 209,144 Corporate bonds Energy 93,191 1,972 110 95,053 Industrials 218,067 3,881 241 221,707 Consumer goods and services 183,253 3,498 494 186,257 Health care 74,125 1,312 29 75,408 Technology, media and telecommunications 146,853 2,376 250 148,979 Financial services 277,824 5,769 442 283,151 Mortgage-backed securities 13,828 101 238 13,691 Collateralized mortgage obligations Government national mortgage association 157,836 1,921 2,274 157,483 Federal home loan mortgage corporation 201,320 1,879 4,047 199,152 Federal national mortgage association 104,903 1,703 1,174 105,432 Asset-backed securities 4,282 362 8 4,636 Total Available-for-Sale Fixed Maturities $ 2,928,901 $ 52,467 $ 16,273 $ 2,965,095 Equity securities: Common stocks Public utilities $ 6,394 $ 16,075 $ 30 $ 22,439 Energy 6,514 8,171 120 14,565 Industrials 13,117 53,522 120 66,519 Consumer goods and services 10,110 15,742 164 25,688 Health care 7,763 32,340 — 40,103 Technology, media and telecommunications 6,067 11,556 115 17,508 Financial services 11,529 104,985 67 116,447 Nonredeemable preferred stocks 992 305 — 1,297 Total Available-for-Sale Equity Securities $ 62,486 $ 242,696 $ 616 $ 304,566 Total Available-for-Sale Securities $ 2,991,387 $ 295,163 $ 16,889 $ 3,269,661 The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at June 30, 2018 and December 31, 2017 : June 30, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Continuing operations $ 150 $ — $ — $ 150 Discontinued operations — — — — Total Held-to-Maturity Fixed Maturities $ 150 $ — $ — 150 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,811,473 $ 9,555 $ 29,009 $ 1,792,019 Discontinued operations — — — — Total Available-for-Sale Fixed Maturities $ 1,811,473 $ 9,555 $ 29,009 $ 1,792,019 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Continuing operations $ 150 $ — $ — $ 150 Discontinued operations 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,516,610 $ 27,412 $ 8,952 $ 1,535,070 Discontinued operations 1,412,291 25,055 7,321 1,430,025 Total Available-for-Sale Fixed Maturities 2,928,901 52,467 16,273 2,965,095 Equity securities: Continuing operations $ 57,387 $ 224,065 $ 539 $ 280,913 Discontinued operations 5,099 18,631 77 23,653 Total Available-for-Sale Equity Securities 62,486 242,696 616 304,566 Total Available-for-Sale Securities $ 2,991,387 $ 295,163 $ 16,889 $ 3,269,661 Maturities The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at June 30, 2018 , by contractual maturity, are shown in the following tables. The table below includes investments from continuing operations. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Held-To-Maturity Available-For-Sale Trading June 30, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ — $ — $ 80,163 $ 80,314 $ 1,807 $ 1,871 Due after one year through five years 150 150 276,772 277,322 8,530 10,268 Due after five years through 10 years — — 481,651 479,036 1,100 1,020 Due after 10 years — — 730,046 718,091 1,267 1,546 Asset-backed securities — — 3,238 3,484 — — Mortgage-backed securities — — 8,382 8,187 — — Collateralized mortgage obligations — — 231,221 225,585 — — $ 150 $ 150 $ 1,811,473 $ 1,792,019 $ 12,704 $ 14,705 Net Realized Investment Gains and Losses Net realized gains on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of the components of net realized investment gains (losses) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net realized investment gains (losses) from continuing operations: Fixed maturities: Available-for-sale $ (219 ) $ 103 $ (193 ) $ 527 Trading securities Change in fair value (148 ) 176 (259 ) 547 Sales 349 (11 ) 905 46 Equity securities 1,315 524 (7,020 ) 1,921 Real estate — 289 — 289 Total net realized investment gains (losses) from continuing operations $ 1,297 $ 1,081 $ (6,567 ) $ 3,330 Total net realized investment gains (losses) from discontinued operations — 1,599 (1,057 ) 3,304 Total net realized investment gains (losses) $ 1,297 $ 2,680 $ (7,624 ) $ 6,634 The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from continuing operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Proceeds from sales $ 23,994 $ — $ 23,994 $ 1,096 Gross realized gains 140 — 140 1,046 Gross realized losses (307 ) — (307 ) — The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from discontinued operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Proceeds from sales $ — $ — $ — $ 3,963 Gross realized gains — — — 1,254 Gross realized losses — — — (78 ) Note: The sale of the life insurance business was completed on March 30, 2018. There were no sales of held-to-maturity securities during the three- and six-month periods ended June 30, 2018 and 2017 . Our investment portfolio includes trading securities with embedded derivatives. These securities are primarily convertible securities which are recorded at fair value. Income or loss, including the change in the fair value of these trading securities, is recognized currently in earnings as a component of net realized investment gains. Our portfolio of trading securities had a fair value of $14,705 and $16,842 at June 30, 2018 and December 31, 2017 , respectively. Funding Commitment Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through December 31, 2027 to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $15,380 at June 30, 2018 . Unrealized Appreciation A summary of the changes in net unrealized investment appreciation during the reporting period is as follows: Six Months Ended June 30, 2018 2017 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ (65,127 ) $ 32,132 Available-for-sale equity securities — 11,861 Deferred policy acquisition costs 7,274 (3,753 ) Income tax effect 12,148 (14,084 ) Net unrealized investment depreciation of discontinued operations, sold 6,714 — Cumulative change in accounting principles (191,244 ) — Total change in net unrealized investment appreciation, net of tax $ (230,235 ) $ 26,156 We continually monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires other-than-temporary impairment ("OTTI") charges to be recorded when we determine that it is more likely than not that we will be unable to collect all amounts due according to the contractual terms of the fixed maturity security or that the anticipated recovery in fair value of the equity security will not occur in a reasonable amount of time. Impairment charges on investments are recorded based on the fair value of the investments at the measurement date or based on the value calculated using a discounted cash flow model. Credit-related impairments on fixed maturity securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net income. Any non-credit related impairment is recognized as a component of other comprehensive income. Factors considered in evaluating whether a decline in value is other-than-temporary include: the length of time and the extent to which fair value has been less than cost; the financial condition and near-term prospects of the issuer; our intention to hold the investment; and the likelihood that we will be required to sell the investment. The tables on the following pages summarize our fixed maturity and equity securities that were in an unrealized loss position on a consolidated basis, including both continuing and discontinued operations at June 30, 2018 and December 31, 2017 . The securities are presented by the length of time they have been continuously in an unrealized loss position. It is possible that we could recognize OTTI charges in future periods on securities held at June 30, 2018 , if future events or information cause us to determine that a decline in fair value is other-than-temporary. We have evaluated the near-term prospects of the issuers of our fixed maturity securities in relation to the severity and duration of the unrealized loss and determined that these losses did not warrant the recognition of an OTTI charge at June 30, 2018 or at June 30, 2017 . We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature. June 30, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 7 $ 65,396 $ 201 2 $ 4,687 $ 140 $ 70,083 $ 341 U.S. government agency 26 126,009 2,357 2 7,644 355 133,653 2,712 States, municipalities and political subdivisions General obligations Midwest 13 19,600 140 3 19,177 913 38,777 1,053 Northeast 4 13,208 78 1 3,534 109 16,742 187 South 17 35,461 503 11 28,623 1,537 64,084 2,040 West 12 28,125 388 8 24,959 1,104 53,084 1,492 Special revenue Midwest 18 33,830 356 7 18,510 852 52,340 1,208 Northeast 4 12,472 120 11 27,636 1,311 40,108 1,431 South 30 61,106 1,034 26 65,618 3,423 126,724 4,457 West 17 31,156 237 21 52,290 2,232 83,446 2,469 Public utilities 19 39,933 1,141 — — — 39,933 1,141 Corporate bonds Energy 7 10,465 316 — — — 10,465 316 Industrials 8 22,206 486 — — — 22,206 486 Consumer goods and services 14 28,226 680 — — — 28,226 680 Health care 4 6,489 159 — — — 6,489 159 Technology, media and telecommunications 10 22,147 790 — — — 22,147 790 Financial services 21 49,917 1,440 1 5,293 306 55,210 1,746 Mortgage-backed securities 34 4,217 113 11 2,012 110 6,229 223 Collateralized mortgage obligations Government national mortgage association 21 50,094 1,766 7 11,744 884 61,838 2,650 Federal home loan mortgage corporation 20 46,374 964 7 17,556 1,080 63,930 2,044 Federal national mortgage association 17 35,019 944 3 6,882 361 41,901 1,305 Asset-backed securities 1 2,846 79 — — — 2,846 79 Total Available-for-Sale Fixed Maturities 324 $ 744,296 $ 14,292 121 $ 296,165 $ 14,717 $ 1,040,461 $ 29,009 December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 5 $ 10,370 $ 67 2 $ 5,765 $ 119 $ 16,135 $ 186 U.S. government agency 11 64,842 390 5 19,372 327 84,214 717 States, municipalities and political subdivisions General obligations Midwest 2 2,177 8 3 19,729 431 21,906 439 Northeast — — — 1 3,644 10 3,644 10 South 3 7,959 32 11 29,545 781 37,504 813 West 2 5,944 18 8 25,755 445 31,699 463 Special revenue Midwest 2 3,486 15 7 19,130 336 22,616 351 Northeast 1 4,471 37 11 28,476 582 32,947 619 South 8 7,749 107 27 69,917 1,744 77,666 1,851 West 3 5,424 16 22 56,753 1,182 62,177 1,198 Foreign bonds 1 857 49 — — — 857 49 Public utilities 8 19,186 79 5 8,446 191 27,632 270 Corporate bonds Energy 1 2,236 13 1 1,606 97 3,842 110 Industrials 10 27,773 146 2 4,275 95 32,048 241 Consumer goods and services 14 32,781 248 3 6,813 246 39,594 494 Health care 4 9,947 29 — — — 9,947 29 Technology, media and telecommunications 12 35,319 122 3 10,413 128 45,732 250 Financial services 22 50,144 256 4 11,389 186 61,533 442 Mortgage-backed securities 10 2,458 18 10 6,641 220 9,099 238 Collateralized mortgage obligations Government national mortgage association 20 49,764 629 17 46,969 1,645 96,733 2,274 Federal home loan mortgage corporation 11 37,543 577 20 75,679 3,470 113,222 4,047 Federal national mortgage association 11 31,958 342 11 20,123 832 52,081 1,174 Asset-backed securities 1 992 8 — — — 992 8 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 Equity securities: Common stocks Public utilities — $ — $ — 1 $ 278 $ 30 $ 278 $ 30 Energy 2 528 120 — — — 528 120 Industrials 1 99 13 5 193 107 292 120 Consumer goods and services — — — 2 151 164 151 164 Technology, media and telecommunications 2 466 95 1 4 20 470 115 Financial services 2 193 55 1 9 12 202 67 Total Available-for-Sale Equity Securities 7 $ 1,286 $ 283 10 $ 635 $ 333 $ 1,921 $ 616 Total Available-for-Sale Securities 169 $ 414,666 $ 3,489 183 $ 471,075 $ 13,400 $ 885,741 $ 16,889 The tables on the following pages are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at June 30, 2018 and December 31, 2017 . The sale of our life insurance business was completed on March 30, 2018. The securities are presented by the length of time they have been continuously in an unrealized loss position: June 30, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Continuing operations 324 $ 744,296 $ 14,292 121 $ 296,165 $ 14,717 $ 1,040,461 $ 29,009 Discontinued operations — — — — — — — — Total Available-for-Sale Fixed Maturities 324 $ 744,296 $ 14,292 121 $ 296,165 $ 14,717 $ 1,040,461 $ 29,009 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Continuing operations 88 $ 232,489 $ 1,791 112 $ 302,815 $ 7,161 $ 535,304 $ 8,952 Discontinued operations 74 180,891 1,415 61 167,625 5,906 348,516 7,321 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 Equity securities: Continuing operations 5 $ 1,129 $ 236 6 $ 385 $ 303 $ 1,514 $ 539 Discontinued operations 2 157 47 4 250 30 407 77 Total Available-for-Sale Equity Securities 7 $ 1,286 $ 283 10 $ 635 $ 333 $ 1,921 $ 616 Total Available-for-Sale Securities 169 $ 414,666 $ 3,489 183 $ 471,075 $ 13,400 $ 885,741 $ 16,889 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The mortgage loan portfolio consists entirely of commercial mortgage loans. The fair value of our mortgage loans is determined by modeling performed by our third party fund manager based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value. The fair value of our policy loans is equivalent to carrying value, which is a reasonable estimate of fair value and is classified as Level 2. We do not make policy loans for amounts in excess of the cash surrender value of the related policy. In all instances, the policy loans are fully collateralized by the related liability for future policy benefits for traditional insurance policies or by the policyholders' account balance for non-traditional policies. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of June 30, 2018 , the cash surrender value of the COLI policies was $4,625 , which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets. Policy reserves are developed and recorded for deferred annuities, which is an interest-sensitive product, and income annuities. The fair value of the reserve liability for these annuity products is based upon an estimate of the discounted pretax cash flows that are forecast for the underlying business, which is a Level 3 fair value measurement. We base the discount rate on the current U.S. Treasury spot yield curve, which is then risk-adjusted for nonperformance risk and, for interest-sensitive business and market risk factors. The risk-adjusted discount rate is developed using interest rates that are available in the market and representative of the risks applicable to the underlying business. A summary of the carrying value and estimated fair value of our financial instruments from continuing operations at June 30, 2018 and December 31, 2017 is as follows: June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ 150 $ 150 $ 150 $ 150 Available-for-sale securities 1,792,019 1,792,019 1,535,070 1,535,070 Trading securities 14,705 14,705 16,842 16,842 Equity securities 260,979 260,979 287,344 287,344 Mortgage loans 9,896 9,896 — — Other long-term investments 43,949 43,949 49,352 49,352 Short-term investments 175 175 175 175 Cash and cash equivalents 100,840 100,840 95,562 95,562 Corporate-owned life insurance 4,625 4,625 4,029 4,029 A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at June 30, 2018 and December 31, 2017 is as follows: June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ — $ — $ 34 $ 34 Available-for-sale securities — — 1,430,025 1,430,025 Equity securities: Available-for-sale securities — — 23,653 23,653 Mortgage loans — — 3,594 3,435 Policy loans — — 5,815 5,815 Other long-term investments — — 16,437 16,437 Cash and cash equivalents — — 15,851 15,851 Liabilities Policy reserves Annuity (accumulations) $ — $ — $ 591,702 $ 611,866 Annuity (benefit payments) — — 147,038 93,560 Note: The sale of the life insurance business was completed on March 30, 2018. The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments from both continuing and discontinued operations at June 30, 2018 and December 31, 2017 : June 30, 2018 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 119,954 $ — $ 119,954 $ — U.S. government agency 194,269 — 194,269 — States, municipalities and political subdivisions General obligations Midwest 99,661 — 99,661 — Northeast 41,111 — 41,111 — South 118,317 — 118,317 — West 109,571 — 109,571 — Special revenue Midwest 143,766 — 143,766 — Northeast 62,884 — 62,884 — South 244,013 — 244,013 — West 146,170 — 146,170 — Foreign bonds 7,823 — 7,823 — Public utilities 48,684 — 48,684 — Corporate bonds Energy 22,272 — 22,272 — Industrials 41,943 — 41,943 — Consumer goods and services 43,526 — 43,526 — Health care 12,977 — 12,977 — Technology, media and telecommunications 25,885 — 25,885 — Financial services 71,937 — 71,837 100 Mortgage-backed securities 8,187 — 8,187 — Collateralized mortgage obligations Government national mortgage association 71,013 — 71,013 — Federal home loan mortgage corporation 109,174 — 109,174 — Federal national mortgage association 45,398 — 45,398 — Asset-backed securities 3,484 — 2,845 639 Total Available-for-Sale Fixed Maturities $ 1,792,019 $ — $ 1,791,280 $ 739 TRADING Fixed maturities: Bonds Corporate bonds Industrials $ 2,099 $ — $ 2,099 $ — Consumer goods and services 1,772 — 1,772 — Health care 3,914 — 3,914 — Technology, media and telecommunications 1,960 — 1,960 — Financial services 2,120 — 2,120 — Redeemable preferred stocks 2,840 2,840 — — Total Trading Securities $ 14,705 $ 2,840 $ 11,865 $ — EQUITY SECURITIES Common stocks Public utilities $ 15,565 $ 15,565 $ — $ — Energy 14,029 14,029 — — Industrials 58,683 58,683 — — Consumer goods and services 24,328 24,328 — — Health care 19,503 19,503 — — Technology, media and telecommunications 14,624 14,624 — — Financial services 110,222 110,222 — — Nonredeemable preferred stocks 4,025 3,356 — 669 Total Equity Securities $ 260,979 $ 260,310 $ — $ 669 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 25,927 $ 25,927 $ — $ — Corporate-Owned Life Insurance $ 4,625 $ — $ 4,625 $ — Total Assets Measured at Fair Value $ 2,098,430 $ 289,252 $ 1,807,770 $ 1,408 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 16,891 $ — $ 16,891 $ — U.S. government agency 122,168 — 122,168 — States, municipalities and political subdivisions General obligations Midwest 109,696 — 109,696 — Northeast 48,641 — 48,641 — South 141,519 — 141,519 — West 113,011 — 113,011 — Special revenue Midwest 158,744 — 158,744 — Northeast 79,760 — 79,760 — South 263,512 — 263,512 — West 158,307 — 158,307 — Foreign bonds 52,753 — 52,753 — Public utilities 209,144 — 209,144 — Corporate bonds Energy 95,053 — 95,053 — Industrials 221,707 — 221,707 — Consumer goods and services 186,257 — 185,589 668 Health care 75,408 — 75,408 — Technology, media and telecommunications 148,979 — 148,979 — Financial services 283,151 — 275,474 7,677 Mortgage-backed securities 13,691 — 13,691 — Collateralized mortgage obligations Government national mortgage association 157,483 — 157,483 — Federal home loan mortgage corporation 199,152 — 199,152 — Federal national mortgage association 105,432 — 105,432 — Asset-backed securities 4,636 — 3,989 647 Total Available-for-Sale Fixed Maturities $ 2,965,095 $ — $ 2,956,103 $ 8,992 Equity securities: Common stocks Public utilities $ 22,439 $ 22,439 $ — $ — Energy 14,565 14,565 — — Industrials 66,519 66,517 2 — Consumer goods and services 25,688 25,688 — — Health care 40,103 40,103 — — Technology, media and telecommunications 17,508 17,508 — — Financial services 116,447 116,447 — — Nonredeemable preferred stocks 1,297 415 — 882 Total Available-for-Sale Equity Securities $ 304,566 $ 303,682 $ 2 $ 882 Total Available-for-Sale Securities $ 3,269,661 $ 303,682 $ 2,956,105 $ 9,874 TRADING Fixed maturities: Bonds Corporate bonds Industrials $ 2,220 $ — $ 2,220 $ — Consumer goods and services 1,535 — 1,535 — Health care 3,741 — 3,741 — Technology, media and telecommunications 1,221 — 1,221 — Financial services 5,566 — 5,566 — Redeemable preferred stocks 2,559 2,559 — — Equity securities: Public utilities 874 874 — — Energy 190 190 — — Industrials 989 989 — — Consumer goods and services 1,314 1,314 — — Health care 325 325 — — Financial services 198 198 — — Nonredeemable preferred stocks 2,541 2,541 — — Total Trading Securities $ 23,273 $ 8,990 $ 14,283 $ — Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 16,824 $ 16,824 $ — $ — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017 : June 30, 2018 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,792,019 $ — $ 1,791,280 $ 739 Discontinued operations — — — — Total Available-for-Sale Fixed Maturities $ 1,792,019 $ — $ 1,791,280 $ 739 TRADING Fixed maturities: Continuing operations $ 14,705 $ 2,840 $ 11,865 $ — Discontinued operations — — — — Total Trading Securities $ 14,705 $ 2,840 $ 11,865 $ — EQUITY SECURITIES Continuing operations $ 260,979 $ 260,310 $ — $ 669 Discontinued operations — — — — Total Equity Securities $ 260,979 $ 260,310 $ — $ 669 SHORT-TERM INVESTMENTS Continuing operations $ 175 $ 175 $ — $ — Discontinued operations — — — $ — Short-Term Investments $ 175 $ 175 $ — $ — MONEY MARKET ACCOUNTS Continuing operations $ 25,927 $ 25,927 $ — $ — Discontinued operations — — — — Money Market Accounts $ 25,927 $ 25,927 $ — $ — CORPORATE-OWNED LIFE INSURANCE Continuing operations $ 4,625 $ — $ 4,625 $ — Discontinued operations — — — — Corporate-Owned Life Insurance $ 4,625 $ — $ 4,625 $ — Total Assets Measured at Fair Value $ 2,098,430 $ 289,252 $ 1,807,770 $ 1,408 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,535,070 $ — $ 1,534,323 $ 747 Discontinued operations 1,430,025 — 1,421,780 8,245 Total Available-for-Sale Fixed Maturities $ 2,965,095 $ — $ 2,956,103 $ 8,992 Equity securities: Continuing operations $ 280,913 $ 280,031 $ — $ 882 Discontinued operations 23,653 23,651 2 — Total Equity Securities $ 304,566 $ 303,682 $ 2 $ 882 Total Available-for-Sale Securities $ 3,269,661 $ 303,682 $ 2,956,105 $ 9,874 TRADING Fixed maturities: Continuing operations $ 16,842 $ 2,559 $ 14,283 $ — Discontinued operations — — — — Equity securities: Continuing operations 6,431 6,431 — — Discontinued operations — — — — Total Trading Securities $ 23,273 $ 8,990 $ 14,283 $ — SHORT-TERM INVESTMENTS Continuing operations $ 175 $ 175 $ — $ — Discontinued operations — — — — Short-Term Investments $ 175 $ 175 $ — $ — MONEY MARKET ACCOUNTS Continuing operations $ 6,147 $ 6,147 $ — $ — Discontinued operations 10,677 10,677 — — Money Market Accounts $ 16,824 $ 16,824 $ — $ — CORPORATE-OWNED LIFE INSURANCE Continuing operations $ 4,029 $ — $ 4,029 $ — Discontinued operations — — — — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available. We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day. At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, we also randomly select securities and independently corroborate the valuations obtained from our third-party valuation service providers. In our opinion, the pricing obtained at June 30, 2018 and December 31, 2017 was reasonable. For the three- and six-month periods ended June 30, 2018 , the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the three- and six-month periods ended June 30, 2018 , there were no securities transferred between Level 1 and Level 2. Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the three- and six-month periods ended June 30, 2018 , there were no securities transferred in or out of Level 3. The following table provides a summary of the changes in fair value of our Level 3 securities from continuing operations for the three-month period ended June 30, 2018 : Corporate bonds Asset-backed securities Equities Total Balance at March 31, 2018 $ 100 $ 632 $ 820 $ 1,552 Net unrealized gains (losses) (1) 7 (151 ) (144 ) Balance at June 30, 2018 $ 100 $ 639 $ 669 $ 1,408 (1) Net unrealized gains (losses) are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities from continuing operations for the six-month period ended June 30, 2018 : Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2018 $ 100 $ 647 $ 882 $ 1,629 Net unrealized losses (1) — (8 ) (213 ) (221 ) Balance at June 30, 2018 $ 100 $ 639 $ 669 $ 1,408 (1) Net unrealized losses are recorded as a component of comprehensive income. Commercial Mortgage Loans The following tables present the carrying value of our commercial mortgage loans and additional information at June 30, 2018 and December 31, 2017 : Commercial Mortgage Loans June 30, 2018 December 31, 2017 Loan-to-value Carrying Value Carrying Value Less than 65% $ 9,896 — Total commercial mortgage loans $ 9,896 $ — Mortgage Loans by Region June 30, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 32.8 % $ — — % Southern Atlantic 6,651 67.2 — — Total mortgage loans $ 9,896 100.0 % $ — — % Mortgage Loans by Property Type June 30, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 3,245 32.8 % $ — — % Office 6,651 67.2 — — Total mortgage loans $ 9,896 100.0 % $ — — % The commercial mortgage loans originate with an initial loan-to-value ratio to provide sufficient collateral to absorb losses should a loan be required to foreclosure. Mortgage loans are evaluated on a quarterly basis for impairment on an individual basis through a monitoring process and review of key credit indicators, such as economic trends, delinquency rates, property valuations, occupancy and rental rates and loan-to-value ratios. A loan is considered impaired when the Company will not collect the contractual principal and interest set forth in the contractual terms of the loan. A valuation allowance is established on each loan recognizing a loss for amounts which we believe will not be collected according to the contractual terms of the respective loan agreement. As of June 30, 2018 there were no mortgage loans impairments. |
Reserves for Losses and Loss Se
Reserves for Losses and Loss Settlement Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Reserves for Losses and Loss Settlement Expenses | RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES Property insurance indemnifies an insured with an interest in physical property for loss of, or damage to, such property or the loss of its income-producing abilities. Casualty insurance primarily covers liability for damage to property of, or injury to, a person or entity other than the insured. In most cases, casualty insurance also obligates the insurance company to provide a defense for the insured in litigation, arising out of events covered by the policy. Liabilities for losses and loss settlement expenses reflect management's best estimates at a given point in time of what we expect to pay for claims that have been reported and those that have been incurred but not reported ("IBNR"), based on known facts, circumstances, and historical trends. Because property and casualty insurance reserves are estimates of the unpaid portions of incurred losses that have been reported to us, as well as losses that have been incurred but not reported, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses and related loss settlement expenses may vary materially from recorded amounts. We regularly update our reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported as a component of losses and loss settlement expenses incurred in the period such changes are determined. The determination of reserves (particularly those relating to liability lines of insurance that have relatively longer lag in claim reporting) requires significant work to reasonably project expected future claim reporting and payment patterns. If, during the course of our regular monitoring of reserves, we determine that coverages previously written are incurring higher than expected losses, we will take action that may include, among other things, increasing the related reserves. Any adjustments we make to reserves are reflected in operating results in the year in which we make those adjustments. We engage an independent actuary, Regnier Consulting Group, Inc., to render an opinion as to the reasonableness of our statutory reserves annually. The actuarial opinion is filed in those states where we are licensed. On a quarterly basis, UFG's internal actuary performs a detailed actuarial review of IBNR reserves. This review includes a comparison of results from the most recent analysis of reserves completed by both our internal and external actuaries. Senior management meets with our internal actuary to review, on a regular and quarterly basis, the adequacy of carried reserves based on results from this actuarial analysis. There are two fundamental types or sources of IBNR reserves. We record IBNR reserves for "normal" types of claims and also specific IBNR reserves related to unique circumstances or events. A major hurricane is an example of an event that might necessitate establishing specific IBNR reserves because an analysis of existing historical data would not provide an appropriate estimate. We do not discount loss reserves based on the time value of money. The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at June 30, 2018 and December 31, 2017 (net of reinsurance amounts): June 30, 2018 December 31, 2017 Gross liability for losses and loss settlement expenses $ 1,224,183 $ 1,123,896 Ceded losses and loss settlement expenses (59,871 ) (59,794 ) Net liability for losses and loss settlement expenses $ 1,164,312 $ 1,064,102 Losses and loss settlement expenses incurred Current year $ 382,259 $ 779,966 Prior years (48,385 ) (54,253 ) Total incurred $ 333,874 $ 725,713 Losses and loss settlement expense payments Current year $ 116,117 $ 311,972 Prior years 197,750 313,531 Total paid $ 313,867 $ 625,503 Net liability for losses and loss settlement expenses $ 1,184,319 $ 1,164,312 Ceded loss and loss settlement expenses 56,528 59,871 Gross liability for losses and loss settlement expenses $ 1,240,847 $ 1,224,183 There are a multitude of factors that can impact loss reserve development. Those factors include, but are not limited to: historical data, the potential impact of various loss reserve development factors and trends including historical loss experience, legislative enactments, judicial decisions, legal developments in imposition of damages, experience with alternative dispute resolution, results of our medical bill review process, the potential impact of salvage and subrogation and changes and trends in general economic conditions, including the effects of inflation. All of these factors influence our estimates of required reserves and for long tail lines these factors can change over the course of the settlement of the claim. However, there is no precise method for evaluating the specific monetary impact of any individual factor on the development of reserves. For the three-month period ended June 30, 2018, the majority of favorable development came from two lines, workers compensation and reinsurance assumed with a partial offset coming from unfavorable development for commercial fire and allied lines and commercial other liability. All other lines combined to also contribute some overall favorable development during this three-month period. For the six-month period ended June 30, 2018, the majority of favorable development came from three lines, commercial automobile, workers compensation, and commercial other liability. All other lines combined to also contribute overall favorable development and only one line, reinsurance assumed, provided any unfavorable development during this six-month period. The favorable development is attributable to our continued litigation management efforts as well as favorable runoff of reserves for general loss adjustment expenses. The significant drivers of the favorable reserve development in 2017 were our commercial liability and workers compensation lines of business. Much of the favorable commercial other liability development came from loss adjustment expense and is attributed to our continued litigation management efforts combined with some favorable development coming from decreases in reserves, which were more than sufficient to pay claims as they closed. Workers compensation favorable development was due to the combined effects of decreases in claim reserves along with favorable changes affecting loss adjustment expense. Our personal lines also contributed favorable development. The lines that experienced adverse development during the year, which partially offset the favorable development mentioned earlier, were assumed reinsurance and commercial automobile. The adverse development for assumed reinsurance is due to increases in prior year reserves for unpaid claims while the adverse development for commercial automobile is due to paid losses which were greater than reductions in reported loss reserves and reserves for claims incurred but not reported. No other single line of business contributed a significant portion of the total development. Generally, we base reserves for each claim on the estimated ultimate exposure for that claim. We believe that it is appropriate and reasonable to establish a best estimate for reserves within a range of reasonable estimates, especially when we are reserving for claims for bodily injury, disabilities and similar claims, for which settlements and verdicts can vary widely. Our reserving philosophy may result in favorable reserve development in future years that will decrease losses and loss settlement expenses for prior year claims in the year of adjustment. We realize that this philosophy, coupled with what we believe to be aggressive and successful claims management and loss settlement practices, has resulted in year-to-year redundancies in reserves. We believe our approach produces recorded reserves that are reasonably consistent as to their relative position within a range of reasonable reserves from year-to-year. However, conditions and trends that have affected the reserve development for a given year do change. Therefore, such development cannot be used to project future reserve redundancies or deficiencies. We are not aware of any significant contingent liabilities related to environmental issues. Because of the type of property coverage we write, we have potential exposure to environmental pollution, mold and asbestos claims. Our underwriters are aware of these exposures and use riders or endorsements to limit exposure. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS Net Periodic Benefit Cost The components of the net periodic benefit cost for our pension and postretirement benefit plans are as follows: Pension Plan Postretirement Benefit Plan Three Months Ended June 30, 2018 2017 2018 2017 Net periodic benefit cost Service cost $ 2,175 $ 1,714 $ 750 $ 505 Interest cost 1,875 1,765 502 482 Expected return on plan assets (2,626 ) (2,412 ) — — Amortization of prior service credit — — (1,352 ) (1,352 ) Amortization of net loss 1,072 891 589 461 Net periodic benefit cost $ 2,496 $ 1,958 $ 489 $ 96 Pension Plan Postretirement Benefit Plan Six Months Ended June 30, 2018 2017 2018 2017 Net periodic benefit cost Service cost $ 4,350 $ 3,427 $ 1,499 $ 1,010 Interest cost 3,750 3,530 1,004 964 Expected return on plan assets (5,251 ) (4,824 ) — — Amortization of prior service credit — — (2,704 ) (2,704 ) Amortization of net loss 2,143 1,782 1,178 922 Net periodic benefit cost $ 4,992 $ 3,915 $ 977 $ 192 Employer Contributions We previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2017 that we expected to contribute $6,400 to the pension plan in 2018 . For the six-month period ended June 30, 2018 , we contributed $3,200 to the pension plan. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Non-qualified Employee Stock Award Plan The United Fire Group, Inc. 2008 Stock Plan (the "2008 Stock Plan") authorized the issuance of restricted and unrestricted stock awards, restricted stock units, stock appreciation rights, incentive stock options, and non-qualified stock options for up to 1,900,000 shares of UFG common stock to employees. In May 2014, the Registrant's shareholders approved an additional 1,500,000 shares of UFG common stock issuable at any time and from time to time pursuant to the 2008 Stock Plan, among other amendments, and renamed such plan as the United Fire Group, Inc. Stock Plan (as amended, the "Stock Plan"). At June 30, 2018 , there were 876,695 authorized shares remaining available for future issuance. The Stock Plan is administered by the Board of Directors, which determines those employees who will receive awards, when awards will be granted, and the terms and conditions of the awards. The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Stock Plan. Pursuant to the Stock Plan, the Board of Directors may, at its sole discretion, grant awards to our employees who are in positions of substantial responsibility with UFG. Options granted pursuant to the Stock Plan are granted to buy shares of UFG's common stock at the market value of the stock on the date of grant. All outstanding option awards have graded vesting over 3 years or 5 years from the grant date, unless the Board of Directors authorizes acceleration of vesting. Performance stock units cliff-vest after 3 years and the certification of performance results by UFG’s Compensation Committee. To the extent not exercised, vested option awards accumulate and are exercisable by the awardee, in whole or in part, in any subsequent year included in the option period, but not later than 10 years from the grant date. Restricted and unrestricted stock awards granted pursuant to the Stock Plan are granted at the market value of UFG's common stock on the date of the grant. Restricted stock units fully vest after 3 years or 5 years from the date of issuance, unless accelerated upon the approval of the Board of Directors, at which time UFG common stock will be issued to the awardee. The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Six Months Ended June 30, 2018 From Inception to June 30, 2018 Beginning balance 996,828 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (157,527 ) (3,029,498 ) Number of awards forfeited or expired 37,394 506,193 Ending balance 876,695 876,695 Number of option awards exercised 198,726 1,284,621 Number of unrestricted stock awards granted — 8,470 Number of restricted stock awards vested 19,658 57,826 Non-qualified Non-employee Director Stock Option and Restricted Stock Plan The United Fire Group, Inc. 2005 Non-qualified Non-employee Director Stock Option and Restricted Stock Plan (the "Director Plan") authorizes the issuance of restricted stock awards and non-qualified stock options to purchase shares of UFG's common stock to non-employee directors. At June 30, 2018 , we had 49,163 authorized shares available for future issuance. The Board of Directors has the authority to determine which non-employee directors receive awards, when options and restricted stock shall be granted, the option price, the option expiration date, the date of grant, the vesting schedule of options or whether the options shall be immediately vested, the terms and conditions of options and restricted stock (other than those terms and conditions set forth in the plan) and the number of shares of common stock to be issued pursuant to an option agreement or restricted stock agreement (subject to limits set forth in the plan). The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Director Plan. The activity in the Director Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Six Months Ended June 30, 2018 From Inception to June 30, 2018 Beginning balance 61,813 300,000 Number of awards granted (12,650 ) (274,840 ) Number of awards forfeited or expired — 24,003 Ending balance 49,163 49,163 Number of option awards exercised 15,599 104,880 Number of restricted stock awards vested 17,269 71,541 Stock-Based Compensation Expense For the three-month periods ended June 30, 2018 and 2017 , we recognized stock-based compensation expense of $1,437 and $1,210 , respectively. For the six-month periods ended June 30, 2018 and 2017 , we recognized stock-based compensation expense of $2,718 and $2,254 , respectively. Stock-based compensation expense is recognized over the vesting period of the stock options. As of June 30, 2018 , we had $9,589 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized over the remainder of 2018 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2018 $ 2,636 2019 4,026 2020 2,348 2021 542 2022 37 Total $ 9,589 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION On September 19, 2017, the Company announced that it had agreed to sell its subsidiary, United Life, to Kuvare. The sale closed on March 30, 2018. As a result, the life insurance business has been considered held for sale and reported as discontinued operations in the Consolidated Financial Statements and all comparable prior periods have been presented to conform to the current period presentation. For more information, refer to Note 11. Discontinued Operations. Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance business has six domestic locations from which it conducts its business. The life insurance segment operated from our home office in Cedar Rapids, Iowa. Because all of our insurance is sold domestically, we have no revenues from foreign operations. After the announcement of United Life, our continuing operations, the property and casualty insurance business, was reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards. We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. The components of basic and diluted earnings per share were as follows for the three-month periods ended June 30, 2018 and 2017 : Three Months Ended June 30, (In Thousands, Except Share Data) 2018 2017 Basic Diluted Basic Diluted Net income from continuing operations $ 157 $ 157 $ 109 $ 109 Weighted-average common shares outstanding 24,976,563 24,976,563 25,133,035 25,133,035 Add dilutive effect of restricted stock unit awards — 281,654 — 248,717 Add dilutive effect of stock options — 353,556 — 242,934 Weighted-average common shares outstanding 24,976,563 25,611,773 25,133,035 25,624,686 Earnings per common share from continuing operations $ 0.01 $ 0.01 $ 0.01 $ 0.01 Earnings per common share from discontinued operations — — 0.11 0.11 Earnings per common share $ 0.01 $ 0.01 $ 0.12 $ 0.12 Awards excluded from diluted earnings per share calculation (1) — 2,681 — — (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. The components of basic and diluted earnings per share were as follows for the six-month periods ended June 30, 2018 and 2017 : Six Months Ended June 30, (In Thousands, Except Share Data) 2018 2017 Basic Diluted Basic Diluted Net income from continuing operations $ 20,521 $ 20,521 $ 18,693 $ 18,693 Weighted-average common shares outstanding 24,946,335 24,946,335 25,288,068 25,288,068 Add dilutive effect of restricted stock unit awards — 281,654 — 248,717 Add dilutive effect of stock options — 354,719 — 215,740 Weighted-average common shares outstanding 24,946,335 25,582,708 25,288,068 25,752,525 Earnings per common share from continuing operations $ 0.82 $ 0.80 $ 0.74 $ 0.73 Earnings per common share from discontinued operations (0.08 ) (0.07 ) 0.17 0.16 Gain on sale of discontinued operations, net of taxes 1.10 1.07 — — Earnings per common share $ 1.84 $ 1.80 $ 0.91 $ 0.89 Awards excluded from diluted earnings per share calculation (1) — 2,681 — — (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facility | CREDIT FACILITY On February 2, 2016, the Company, as borrower, entered into a Credit Agreement (the "Credit Agreement") by and among the Company, with the lenders from time to time party thereto and KeyBank National Association ("Key Bank"), as administrative agent, swingline lender and letter of credit issuer. The Credit Agreement provides for a $50,000 four -year unsecured revolving credit facility that includes a $20,000 letter of credit subfacility and a swingline subfacility in the amount up to $5,000 . The Credit Agreement allows the Company to increase the aggregate amount of the commitments thereunder by up to $100,000 , provided that no event of default has occurred and is continuing and certain other conditions are satisfied. The Credit Agreement is available for the Company's general corporate purposes, including liquidity, acquisitions and working capital. All unpaid principal and accrued interest under the Credit Agreement is due and payable in full at maturity on February 2, 2020. Based on the type of loan, advances under the Credit Agreement would bear interest on either the London interbank offered rate ("LIBOR") or a base rate plus, in each case, a calculated margin amount. The unused commitments under the Credit Agreement will be subject to a commitment fee that will be calculated at a per annum rate. The applicable margins for borrowings under the Credit Agreement and the commitment fee thereunder will be determined by reference to a pricing grid based on the Company’s issuer credit rating by A.M. Best Company, Inc. The Credit Agreement contains customary representations, conditions to borrowing, covenants and events of default, including certain covenants that limit or restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to sell or transfer assets, enter into a merger or consolidate with another company, create liens, impose restrictions on subsidiary dividends, enter into sale-leaseback transactions, make investments or acquisitions, enter into certain reinsurance agreements, pay dividends during any period of default, enter into transactions with affiliates, change the nature of its business, or incur indebtedness. The Credit Agreement also includes financial covenants that require the Company to (i) maintain a minimum consolidated net worth, (ii) maintain a minimum consolidated statutory surplus and (iii) not exceed a 0.35 to 1.0 debt to total capitalization ratio. There was no outstanding balance on the Credit Agreement at June 30, 2018 and 2017 , respectively. For the six-month periods ended June 30, 2018 and 2017 , we did no t incur any interest expense related to either credit facility. We were in compliance with all covenants of the Credit Agreement at June 30, 2018 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the three-month period ended June 30, 2018 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of March 31, 2018 $ (10,627 ) $ (45,240 ) $ (55,867 ) Change in accumulated other comprehensive income before reclassifications (4,898 ) — (4,898 ) Reclassification adjustments from accumulated other comprehensive income (loss) 155 1,312 1,467 Balance as of June 30, 2018 $ (15,370 ) $ (43,928 ) $ (59,298 ) (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the six-month period ended June 30, 2018 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of January 1, 2018 $ 214,865 $ (46,551 ) $ 168,314 Cumulative effect of change in accounting principle (191,244 ) — (191,244 ) Change in accumulated other comprehensive income before reclassifications (39,117 ) — (39,117 ) Reclassification adjustments from accumulated other comprehensive income (loss) 126 2,623 2,749 Balance as of June 30, 2018 $ (15,370 ) $ (43,928 ) $ (59,298 ) (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS On September 18, 2017, we signed a definitive agreement to sell our subsidiary, United Life, to Kuvare for $280,000 in cash, less a $21 adjustment as set forth in the definitive agreement, for a net amount of $279,979 . The sale closed on March 30, 2018 and we reported an after-tax gain on the sale of discontinued operations of $27,307 . The life insurance business (previously reported as a separate segment) was considered held for sale and reported as discontinued operations and its financial position, results of operations and cash flows were reported separately for all periods presented, as applicable, unless otherwise noted. UFG has agreed to provide services to Kuvare through a transition services agreement ("TSA"). The TSA ensures a seamless transfer of the business between UFG and Kuvare. The TSA includes, among other considerations, accounting management, human resources, legal and information technology services, from the closing date for up to 24 months . The assets and liabilities associated with discontinued operations prior to the closing of the sale have been presented separately in our Consolidated Balance Sheets. The major assets and liability categories were as follows as of the dates indicated: Discontinued Operations Balance Sheets (In Thousands, Except Share Data) June 30, December 31, (unaudited) Assets Investments Fixed maturities Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017) $ — $ 34 Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017) — 1,430,025 Equity Securities at fair value (cost $0 in 2018 and $5,099 in 2017) — 23,653 Mortgage loans — 3,435 Policy loans — 5,815 Other long-term investments — 16,437 — 1,479,399 Cash and cash equivalents — 15,851 Deferred policy acquisition costs — 71,151 Other assets — 19,733 Total assets held for sale $ — $ 1,586,134 Liabilities Future policy benefits and losses $ — $ 1,320,401 Deferred income taxes — 18,716 Accrued expenses and other liabilities — 8,018 Total liabilities held for sale $ — $ 1,347,135 Note: The sale of the life insurance business was completed on March 30, 2018. Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In Thousands, Except Share Data) 2018 2017 2018 2017 Revenues Net premiums earned $ — $ 14,341 $ 13,003 $ 31,769 Investment income, net of investment expenses — 12,426 12,663 24,876 Net realized investment gains (losses) — 1,599 (1,057 ) 3,304 Other income — 126 146 324 Total revenues $ — $ 28,492 $ 24,755 $ 60,273 Benefits, Losses and Expenses Losses and loss settlement expenses $ — $ 9,102 $ 10,823 $ 20,173 Increase in liability for future policy benefits — 5,281 5,023 13,860 Amortization of deferred policy acquisition costs — 1,695 1,895 3,368 Other underwriting expenses — 3,377 3,864 7,008 Interest on policyholders’ accounts — 4,651 4,499 9,395 Total benefits, losses and expenses $ — $ 24,106 $ 26,104 $ 53,804 Income (loss) from discontinued operations before income taxes $ — $ 4,386 $ (1,349 ) $ 6,469 Federal income tax expense — 1,537 563 2,268 Net income (loss) from discontinued operations $ — $ 2,849 $ (1,912 ) $ 4,201 Earnings (loss) per common share from discontinued operations: Basic $ — $ 0.11 $ (0.08 ) $ 0.17 Diluted — 0.11 (0.07 ) 0.16 Note: The sale of the life insurance business was completed on March 30, 2018. The Company's Consolidated Statement of Cash Flows presents operating, investing and financing cash flows of the discontinued operations separately. The Company's cash management and financial management of both continued and discontinued operations is consolidated as a centralized corporate function in our Finance Department. |
Nature of Operations and Basi20
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Discontinued Operations | Discontinued Operations We have historically reported our operations in two business segments: property and casualty insurance and life insurance. On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, the life insurance business, previously a separate segment, was considered held for sale and reported as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented in this Form 10-Q (collectively, the "Consolidated Financial Statements"). Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, as applicable, unless otherwise noted. |
Basis of Presentation | Basis of Presentation The unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K for the year ended December 31, 2017, including certain financial statement footnote disclosures, is not required by the rules and regulations of the SEC for interim financial reporting and have been condensed or omitted. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; future policy benefits and losses, and loss settlement expenses; and pension and postretirement benefit obligations. |
Reclassification | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less. |
Deferred Policy Acquisition Costs (DAC) | Deferred Policy Acquisition Costs ("DAC") Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC, including the related amortization recognized for the six-month period ended June 30, 2018 . Continuing Operations Discontinued Operations Property & Casualty Insurance Life Insurance Total Recorded asset at beginning of period $ 88,102 $ 71,151 $ 159,253 Underwriting costs deferred 107,412 1,376 108,788 Amortization of deferred policy acquisition costs (100,449 ) (1,895 ) (102,344 ) Ending unamortized deferred policy acquisition costs $ 95,065 $ 70,632 $ 165,697 Impact of unrealized gains and losses on available-for-sale securities — 7,274 7,274 Sale of discontinued operations — (77,906 ) (77,906 ) Recorded asset at June 30, 2018 $ 95,065 $ — $ 95,065 Property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. For traditional life insurance policies, DAC is amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits. For non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised. The effect on DAC that results from the assumed realization of unrealized gains (losses) on investments allocated to non-traditional life insurance business is recognized with an offset to net unrealized investment appreciation as of the balance sheet date. |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of June 30, 2018 we had not completed accounting for the tax effects of enactment of the Tax Act, however for certain items, we have made a reasonable estimate of the effects on our deferred tax balances. For other items where we could not make a reasonable estimate, we are still using existing accounting guidance and the provisions of the tax laws that were in place prior to the enactment. The Company will continue to refine this estimated provisional adjustment as we gain a more thorough understanding of the effects of enactment of the Tax Act on the Company, and the Company will take future guidance into consideration when it becomes available. Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. We reported consolidated federal income tax expense from continuing and discontinued operations of $7,350 and $2,250 for the six-month periods ended June 30, 2018 and 2017 , respectively. Our effective tax rate is different than the federal statutory rate of 21 percent , due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income. The Company performs a quarterly review of its tax positions and makes a determination of whether it is more likely than not that the tax position will be sustained upon examination. If, based on review, it appears not more likely than not that the positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did no t recognize any liability for unrecognized tax benefits at June 30, 2018 or December 31, 2017 . In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense. With regard to the sale of the life insurance subsidiary, federal income taxes were allocated to continuing and discontinued operations in accordance with the Company’s tax allocation agreement and the terms of the definitive agreement related to the sale. We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2014. |
Subsequent Events | Subsequent Events In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted in 2018 Revenue Recognition In May 2014, the FASB issued comprehensive new guidance on revenue recognition which supersedes nearly all existing revenue recognition guidance under GAAP. The new guidance requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. Insurance contracts are not within the scope of this new guidance. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the guidance as of January 1, 2018. The adoption of the new guidance had no impact on the Company's reporting and disclosure of net premiums earned from insurance contracts, net investment income or net realized gains and losses, as these revenue streams are not within the scope of this new guidance. The remaining revenue streams are immaterial and not impacted by the new standard. Financial Instruments In January 2016, the FASB issued guidance updating certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (for example, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The new guidance also simplifies the impairment process for equity investments without readily determinable fair values. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a reclassification from accumulated other comprehensive income to retained earnings of $191,244 after tax, which is equal to the amount of net unrealized gains and losses on available-for-sale equity securities on January 1, 2018. Also, in the three- and six-month periods ended June 30, 2018, the Company recognized an after-tax net realized investment gain of $241 and an after-tax net realized investment loss of $7,879 , respectively, in net income from the change in value of equity securities due to the adoption of this new accounting guidance. Statement of Cash Flows - Classification of Certain Cash Receipts and Payments In August 2016, the FASB issued an update that clarifies the classification of certain cash receipts and payments in the Statement of Cash Flows. The update addresses eight existing cash flow issues by clarifying the correct classification to establish uniformity in practice. The updated guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Defined Benefit Retirement Plan Cost In March 2017, the FASB issued guidance on the presentation of net periodic benefit costs of defined benefit retirement benefit plans in the Statements of Income. The new guidance requires the service cost component of net periodic benefit cost of defined benefit plans to be presented in the same line in the Statements of Income as other employee compensation expenses. Also, under the new guidance, the service cost component of the net periodic benefit costs will be the only portion of costs subject to be capitalized in assets. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a change in the capitalization of deferred acquisition costs to only include the pension and post retirement service costs in place of the total net periodic benefit costs. The adoption had an immaterial impact on the Company's financial position and results of operations. Additionally, the adoption did not impact the Company's presentation in the Statements of Income as all net periodic benefit costs and employee compensation expenses are included within the same category in the Statements of Income. Share-Based Payments In May 2017, the FASB issued new guidance which clarifies and addresses the diversity in practice when there is a change in the terms of a share-based payment award. The updated guidance clarifies when to use modification accounting when there is a change in the terms of a share-based payment and provides three conditions where modification accounting should not be applied. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Pending Adoption of Accounting Standards Leases In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability, for all leases with terms greater than 12 months, on their balance sheets. The lease liability will be based on the present value of the future lease payments and the asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company will adopt the new guidance using the package of practical expedients as of January 1, 2019. The Company has created an inventory of its operating leases and has calculated the undiscounted future minimum lease payments, which are disclosed in Note 13. Lease Commitments of the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The undiscounted future minimum lease payments at December 31, 2017 is $22.5 million , which represents less than 1.0 percent of the Company's total assets at December 31, 2017. The Company plans to use their incremental borrowing rate of their credit facility described in Note 9. Credit Facility of this Form 10-Q, as the discount rate for calculating the minimum lease payments. The Company is reviewing and updating its processes and controls under the new guidance. Management currently believes that the adoption will not have a significant impact on the Company's financial position and results of operations. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2020 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2021 and is currently evaluating the impact on the Company's financial position, results of operations and key processes. Income Taxes - Intra-entity Transfers In October 2016, the FASB issued new guidance on the income tax treatment of intra-entity transfers. The new guidance replaces the current guidance which prohibits the recognition of current and deferred income taxes of intra-entity transfers until the asset is sold externally. Under the new guidance, the exemption is eliminated and income taxes will be recognized on transfers of intra-entity assets. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2019 and is currently evaluating the impact on the Company's financial position and results of operations. Goodwill In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations. |
Fair Value Measurement | Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The mortgage loan portfolio consists entirely of commercial mortgage loans. The fair value of our mortgage loans is determined by modeling performed by our third party fund manager based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value. The fair value of our policy loans is equivalent to carrying value, which is a reasonable estimate of fair value and is classified as Level 2. We do not make policy loans for amounts in excess of the cash surrender value of the related policy. In all instances, the policy loans are fully collateralized by the related liability for future policy benefits for traditional insurance policies or by the policyholders' account balance for non-traditional policies. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of June 30, 2018 , the cash surrender value of the COLI policies was $4,625 , which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets. Policy reserves are developed and recorded for deferred annuities, which is an interest-sensitive product, and income annuities. The fair value of the reserve liability for these annuity products is based upon an estimate of the discounted pretax cash flows that are forecast for the underlying business, which is a Level 3 fair value measurement. We base the discount rate on the current U.S. Treasury spot yield curve, which is then risk-adjusted for nonperformance risk and, for interest-sensitive business and market risk factors. The risk-adjusted discount rate is developed using interest rates that are available in the market and representative of the risks applicable to the underlying business. The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available. We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day. At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, we also randomly select securities and independently corroborate the valuations obtained from our third-party valuation service providers. In our opinion, the pricing obtained at June 30, 2018 and December 31, 2017 was reasonable. For the three- and six-month periods ended June 30, 2018 , the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the three- and six-month periods ended June 30, 2018 , there were no securities transferred between Level 1 and Level 2. Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the three- and six-month periods ended June 30, 2018 , there were no securities transferred in or out of Level 3. |
Segment Information | Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance business has six domestic locations from which it conducts its business. The life insurance segment operated from our home office in Cedar Rapids, Iowa. Because all of our insurance is sold domestically, we have no revenues from foreign operations. After the announcement of United Life, our continuing operations, the property and casualty insurance business, was reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP. |
Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards. We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. |
Nature of Operations and Basi21
Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Deferred Acquisition Costs | The following table is a summary of the components of DAC, including the related amortization recognized for the six-month period ended June 30, 2018 . Continuing Operations Discontinued Operations Property & Casualty Insurance Life Insurance Total Recorded asset at beginning of period $ 88,102 $ 71,151 $ 159,253 Underwriting costs deferred 107,412 1,376 108,788 Amortization of deferred policy acquisition costs (100,449 ) (1,895 ) (102,344 ) Ending unamortized deferred policy acquisition costs $ 95,065 $ 70,632 $ 165,697 Impact of unrealized gains and losses on available-for-sale securities — 7,274 7,274 Sale of discontinued operations — (77,906 ) (77,906 ) Recorded asset at June 30, 2018 $ 95,065 $ — $ 95,065 |
Summary of Investments (Tables)
Summary of Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Fair Value of Investments | A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of June 30, 2018 and December 31, 2017 , is as follows: June 30, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Bonds Corporate bonds - financial services $ 150 $ — $ — $ 150 Total Held-to-Maturity Fixed Maturities $ 150 $ — $ — $ 150 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 120,272 $ 23 $ 341 $ 119,954 U.S. government agency 196,348 633 2,712 194,269 States, municipalities and political subdivisions General obligations: Midwest 99,821 893 1,053 99,661 Northeast 40,913 385 187 41,111 South 119,745 612 2,040 118,317 West 110,147 916 1,492 109,571 Special revenue: Midwest 143,606 1,368 1,208 143,766 Northeast 63,889 426 1,431 62,884 South 247,056 1,414 4,457 244,013 West 147,388 1,251 2,469 146,170 Foreign bonds 7,751 72 — 7,823 Public utilities 49,629 196 1,141 48,684 Corporate bonds Energy 22,477 111 316 22,272 Industrials 42,286 143 486 41,943 Consumer goods and services 44,100 106 680 43,526 Health care 13,071 65 159 12,977 Technology, media and telecommunications 26,632 43 790 25,885 Financial services 73,501 182 1,746 71,937 Mortgage-backed securities 8,382 28 223 8,187 Collateralized mortgage obligations Government national mortgage association 73,482 181 2,650 71,013 Federal home loan mortgage corporation 111,082 136 2,044 109,174 Federal national mortgage association 46,657 46 1,305 45,398 Asset-backed securities 3,238 325 79 3,484 Total Available-for-Sale Fixed Maturities $ 1,811,473 $ 9,555 $ 29,009 $ 1,792,019 December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Bonds Corporate bonds - financial services $ 150 $ — $ — $ 150 Mortgage-backed securities 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 17,073 $ 4 $ 186 $ 16,891 U.S. government agency 121,574 1,311 717 122,168 States, municipalities and political subdivisions General obligations: Midwest 107,689 2,446 439 109,696 Northeast 47,477 1,174 10 48,641 South 139,870 2,462 813 141,519 West 111,123 2,351 463 113,011 Special revenue: Midwest 155,475 3,620 351 158,744 Northeast 79,028 1,351 619 79,760 South 260,145 5,218 1,851 263,512 West 156,576 2,929 1,198 158,307 Foreign bonds 51,361 1,441 49 52,753 Public utilities 206,028 3,386 270 209,144 Corporate bonds Energy 93,191 1,972 110 95,053 Industrials 218,067 3,881 241 221,707 Consumer goods and services 183,253 3,498 494 186,257 Health care 74,125 1,312 29 75,408 Technology, media and telecommunications 146,853 2,376 250 148,979 Financial services 277,824 5,769 442 283,151 Mortgage-backed securities 13,828 101 238 13,691 Collateralized mortgage obligations Government national mortgage association 157,836 1,921 2,274 157,483 Federal home loan mortgage corporation 201,320 1,879 4,047 199,152 Federal national mortgage association 104,903 1,703 1,174 105,432 Asset-backed securities 4,282 362 8 4,636 Total Available-for-Sale Fixed Maturities $ 2,928,901 $ 52,467 $ 16,273 $ 2,965,095 Equity securities: Common stocks Public utilities $ 6,394 $ 16,075 $ 30 $ 22,439 Energy 6,514 8,171 120 14,565 Industrials 13,117 53,522 120 66,519 Consumer goods and services 10,110 15,742 164 25,688 Health care 7,763 32,340 — 40,103 Technology, media and telecommunications 6,067 11,556 115 17,508 Financial services 11,529 104,985 67 116,447 Nonredeemable preferred stocks 992 305 — 1,297 Total Available-for-Sale Equity Securities $ 62,486 $ 242,696 $ 616 $ 304,566 Total Available-for-Sale Securities $ 2,991,387 $ 295,163 $ 16,889 $ 3,269,661 The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at June 30, 2018 and December 31, 2017 : June 30, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Continuing operations $ 150 $ — $ — $ 150 Discontinued operations — — — — Total Held-to-Maturity Fixed Maturities $ 150 $ — $ — 150 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,811,473 $ 9,555 $ 29,009 $ 1,792,019 Discontinued operations — — — — Total Available-for-Sale Fixed Maturities $ 1,811,473 $ 9,555 $ 29,009 $ 1,792,019 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Continuing operations $ 150 $ — $ — $ 150 Discontinued operations 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,516,610 $ 27,412 $ 8,952 $ 1,535,070 Discontinued operations 1,412,291 25,055 7,321 1,430,025 Total Available-for-Sale Fixed Maturities 2,928,901 52,467 16,273 2,965,095 Equity securities: Continuing operations $ 57,387 $ 224,065 $ 539 $ 280,913 Discontinued operations 5,099 18,631 77 23,653 Total Available-for-Sale Equity Securities 62,486 242,696 616 304,566 Total Available-for-Sale Securities $ 2,991,387 $ 295,163 $ 16,889 $ 3,269,661 |
Maturities | The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at June 30, 2018 , by contractual maturity, are shown in the following tables. The table below includes investments from continuing operations. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Held-To-Maturity Available-For-Sale Trading June 30, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ — $ — $ 80,163 $ 80,314 $ 1,807 $ 1,871 Due after one year through five years 150 150 276,772 277,322 8,530 10,268 Due after five years through 10 years — — 481,651 479,036 1,100 1,020 Due after 10 years — — 730,046 718,091 1,267 1,546 Asset-backed securities — — 3,238 3,484 — — Mortgage-backed securities — — 8,382 8,187 — — Collateralized mortgage obligations — — 231,221 225,585 — — $ 150 $ 150 $ 1,811,473 $ 1,792,019 $ 12,704 $ 14,705 |
Net Realized Investment Gains and Losses | A summary of the components of net realized investment gains (losses) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net realized investment gains (losses) from continuing operations: Fixed maturities: Available-for-sale $ (219 ) $ 103 $ (193 ) $ 527 Trading securities Change in fair value (148 ) 176 (259 ) 547 Sales 349 (11 ) 905 46 Equity securities 1,315 524 (7,020 ) 1,921 Real estate — 289 — 289 Total net realized investment gains (losses) from continuing operations $ 1,297 $ 1,081 $ (6,567 ) $ 3,330 Total net realized investment gains (losses) from discontinued operations — 1,599 (1,057 ) 3,304 Total net realized investment gains (losses) $ 1,297 $ 2,680 $ (7,624 ) $ 6,634 |
Proceeds and Gross Realized Gains and Losses | The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from continuing operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Proceeds from sales $ 23,994 $ — $ 23,994 $ 1,096 Gross realized gains 140 — 140 1,046 Gross realized losses (307 ) — (307 ) — The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from discontinued operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Proceeds from sales $ — $ — $ — $ 3,963 Gross realized gains — — — 1,254 Gross realized losses — — — (78 ) Note: The sale of the life insurance business was completed on March 30, 2018. |
Unrealized Investment Appreciation | A summary of the changes in net unrealized investment appreciation during the reporting period is as follows: Six Months Ended June 30, 2018 2017 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ (65,127 ) $ 32,132 Available-for-sale equity securities — 11,861 Deferred policy acquisition costs 7,274 (3,753 ) Income tax effect 12,148 (14,084 ) Net unrealized investment depreciation of discontinued operations, sold 6,714 — Cumulative change in accounting principles (191,244 ) — Total change in net unrealized investment appreciation, net of tax $ (230,235 ) $ 26,156 |
Investments in Unrealized Loss Position | June 30, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 7 $ 65,396 $ 201 2 $ 4,687 $ 140 $ 70,083 $ 341 U.S. government agency 26 126,009 2,357 2 7,644 355 133,653 2,712 States, municipalities and political subdivisions General obligations Midwest 13 19,600 140 3 19,177 913 38,777 1,053 Northeast 4 13,208 78 1 3,534 109 16,742 187 South 17 35,461 503 11 28,623 1,537 64,084 2,040 West 12 28,125 388 8 24,959 1,104 53,084 1,492 Special revenue Midwest 18 33,830 356 7 18,510 852 52,340 1,208 Northeast 4 12,472 120 11 27,636 1,311 40,108 1,431 South 30 61,106 1,034 26 65,618 3,423 126,724 4,457 West 17 31,156 237 21 52,290 2,232 83,446 2,469 Public utilities 19 39,933 1,141 — — — 39,933 1,141 Corporate bonds Energy 7 10,465 316 — — — 10,465 316 Industrials 8 22,206 486 — — — 22,206 486 Consumer goods and services 14 28,226 680 — — — 28,226 680 Health care 4 6,489 159 — — — 6,489 159 Technology, media and telecommunications 10 22,147 790 — — — 22,147 790 Financial services 21 49,917 1,440 1 5,293 306 55,210 1,746 Mortgage-backed securities 34 4,217 113 11 2,012 110 6,229 223 Collateralized mortgage obligations Government national mortgage association 21 50,094 1,766 7 11,744 884 61,838 2,650 Federal home loan mortgage corporation 20 46,374 964 7 17,556 1,080 63,930 2,044 Federal national mortgage association 17 35,019 944 3 6,882 361 41,901 1,305 Asset-backed securities 1 2,846 79 — — — 2,846 79 Total Available-for-Sale Fixed Maturities 324 $ 744,296 $ 14,292 121 $ 296,165 $ 14,717 $ 1,040,461 $ 29,009 December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 5 $ 10,370 $ 67 2 $ 5,765 $ 119 $ 16,135 $ 186 U.S. government agency 11 64,842 390 5 19,372 327 84,214 717 States, municipalities and political subdivisions General obligations Midwest 2 2,177 8 3 19,729 431 21,906 439 Northeast — — — 1 3,644 10 3,644 10 South 3 7,959 32 11 29,545 781 37,504 813 West 2 5,944 18 8 25,755 445 31,699 463 Special revenue Midwest 2 3,486 15 7 19,130 336 22,616 351 Northeast 1 4,471 37 11 28,476 582 32,947 619 South 8 7,749 107 27 69,917 1,744 77,666 1,851 West 3 5,424 16 22 56,753 1,182 62,177 1,198 Foreign bonds 1 857 49 — — — 857 49 Public utilities 8 19,186 79 5 8,446 191 27,632 270 Corporate bonds Energy 1 2,236 13 1 1,606 97 3,842 110 Industrials 10 27,773 146 2 4,275 95 32,048 241 Consumer goods and services 14 32,781 248 3 6,813 246 39,594 494 Health care 4 9,947 29 — — — 9,947 29 Technology, media and telecommunications 12 35,319 122 3 10,413 128 45,732 250 Financial services 22 50,144 256 4 11,389 186 61,533 442 Mortgage-backed securities 10 2,458 18 10 6,641 220 9,099 238 Collateralized mortgage obligations Government national mortgage association 20 49,764 629 17 46,969 1,645 96,733 2,274 Federal home loan mortgage corporation 11 37,543 577 20 75,679 3,470 113,222 4,047 Federal national mortgage association 11 31,958 342 11 20,123 832 52,081 1,174 Asset-backed securities 1 992 8 — — — 992 8 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 Equity securities: Common stocks Public utilities — $ — $ — 1 $ 278 $ 30 $ 278 $ 30 Energy 2 528 120 — — — 528 120 Industrials 1 99 13 5 193 107 292 120 Consumer goods and services — — — 2 151 164 151 164 Technology, media and telecommunications 2 466 95 1 4 20 470 115 Financial services 2 193 55 1 9 12 202 67 Total Available-for-Sale Equity Securities 7 $ 1,286 $ 283 10 $ 635 $ 333 $ 1,921 $ 616 Total Available-for-Sale Securities 169 $ 414,666 $ 3,489 183 $ 471,075 $ 13,400 $ 885,741 $ 16,889 The tables on the following pages are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at June 30, 2018 and December 31, 2017 . The sale of our life insurance business was completed on March 30, 2018. The securities are presented by the length of time they have been continuously in an unrealized loss position: June 30, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Continuing operations 324 $ 744,296 $ 14,292 121 $ 296,165 $ 14,717 $ 1,040,461 $ 29,009 Discontinued operations — — — — — — — — Total Available-for-Sale Fixed Maturities 324 $ 744,296 $ 14,292 121 $ 296,165 $ 14,717 $ 1,040,461 $ 29,009 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Continuing operations 88 $ 232,489 $ 1,791 112 $ 302,815 $ 7,161 $ 535,304 $ 8,952 Discontinued operations 74 180,891 1,415 61 167,625 5,906 348,516 7,321 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 Equity securities: Continuing operations 5 $ 1,129 $ 236 6 $ 385 $ 303 $ 1,514 $ 539 Discontinued operations 2 157 47 4 250 30 407 77 Total Available-for-Sale Equity Securities 7 $ 1,286 $ 283 10 $ 635 $ 333 $ 1,921 $ 616 Total Available-for-Sale Securities 169 $ 414,666 $ 3,489 183 $ 471,075 $ 13,400 $ 885,741 $ 16,889 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Financial Instruments | A summary of the carrying value and estimated fair value of our financial instruments from continuing operations at June 30, 2018 and December 31, 2017 is as follows: June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ 150 $ 150 $ 150 $ 150 Available-for-sale securities 1,792,019 1,792,019 1,535,070 1,535,070 Trading securities 14,705 14,705 16,842 16,842 Equity securities 260,979 260,979 287,344 287,344 Mortgage loans 9,896 9,896 — — Other long-term investments 43,949 43,949 49,352 49,352 Short-term investments 175 175 175 175 Cash and cash equivalents 100,840 100,840 95,562 95,562 Corporate-owned life insurance 4,625 4,625 4,029 4,029 A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at June 30, 2018 and December 31, 2017 is as follows: June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ — $ — $ 34 $ 34 Available-for-sale securities — — 1,430,025 1,430,025 Equity securities: Available-for-sale securities — — 23,653 23,653 Mortgage loans — — 3,594 3,435 Policy loans — — 5,815 5,815 Other long-term investments — — 16,437 16,437 Cash and cash equivalents — — 15,851 15,851 Liabilities Policy reserves Annuity (accumulations) $ — $ — $ 591,702 $ 611,866 Annuity (benefit payments) — — 147,038 93,560 Note: The sale of the life insurance business was completed on March 30, 2018. |
Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments from both continuing and discontinued operations at June 30, 2018 and December 31, 2017 : June 30, 2018 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 119,954 $ — $ 119,954 $ — U.S. government agency 194,269 — 194,269 — States, municipalities and political subdivisions General obligations Midwest 99,661 — 99,661 — Northeast 41,111 — 41,111 — South 118,317 — 118,317 — West 109,571 — 109,571 — Special revenue Midwest 143,766 — 143,766 — Northeast 62,884 — 62,884 — South 244,013 — 244,013 — West 146,170 — 146,170 — Foreign bonds 7,823 — 7,823 — Public utilities 48,684 — 48,684 — Corporate bonds Energy 22,272 — 22,272 — Industrials 41,943 — 41,943 — Consumer goods and services 43,526 — 43,526 — Health care 12,977 — 12,977 — Technology, media and telecommunications 25,885 — 25,885 — Financial services 71,937 — 71,837 100 Mortgage-backed securities 8,187 — 8,187 — Collateralized mortgage obligations Government national mortgage association 71,013 — 71,013 — Federal home loan mortgage corporation 109,174 — 109,174 — Federal national mortgage association 45,398 — 45,398 — Asset-backed securities 3,484 — 2,845 639 Total Available-for-Sale Fixed Maturities $ 1,792,019 $ — $ 1,791,280 $ 739 TRADING Fixed maturities: Bonds Corporate bonds Industrials $ 2,099 $ — $ 2,099 $ — Consumer goods and services 1,772 — 1,772 — Health care 3,914 — 3,914 — Technology, media and telecommunications 1,960 — 1,960 — Financial services 2,120 — 2,120 — Redeemable preferred stocks 2,840 2,840 — — Total Trading Securities $ 14,705 $ 2,840 $ 11,865 $ — EQUITY SECURITIES Common stocks Public utilities $ 15,565 $ 15,565 $ — $ — Energy 14,029 14,029 — — Industrials 58,683 58,683 — — Consumer goods and services 24,328 24,328 — — Health care 19,503 19,503 — — Technology, media and telecommunications 14,624 14,624 — — Financial services 110,222 110,222 — — Nonredeemable preferred stocks 4,025 3,356 — 669 Total Equity Securities $ 260,979 $ 260,310 $ — $ 669 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 25,927 $ 25,927 $ — $ — Corporate-Owned Life Insurance $ 4,625 $ — $ 4,625 $ — Total Assets Measured at Fair Value $ 2,098,430 $ 289,252 $ 1,807,770 $ 1,408 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 16,891 $ — $ 16,891 $ — U.S. government agency 122,168 — 122,168 — States, municipalities and political subdivisions General obligations Midwest 109,696 — 109,696 — Northeast 48,641 — 48,641 — South 141,519 — 141,519 — West 113,011 — 113,011 — Special revenue Midwest 158,744 — 158,744 — Northeast 79,760 — 79,760 — South 263,512 — 263,512 — West 158,307 — 158,307 — Foreign bonds 52,753 — 52,753 — Public utilities 209,144 — 209,144 — Corporate bonds Energy 95,053 — 95,053 — Industrials 221,707 — 221,707 — Consumer goods and services 186,257 — 185,589 668 Health care 75,408 — 75,408 — Technology, media and telecommunications 148,979 — 148,979 — Financial services 283,151 — 275,474 7,677 Mortgage-backed securities 13,691 — 13,691 — Collateralized mortgage obligations Government national mortgage association 157,483 — 157,483 — Federal home loan mortgage corporation 199,152 — 199,152 — Federal national mortgage association 105,432 — 105,432 — Asset-backed securities 4,636 — 3,989 647 Total Available-for-Sale Fixed Maturities $ 2,965,095 $ — $ 2,956,103 $ 8,992 Equity securities: Common stocks Public utilities $ 22,439 $ 22,439 $ — $ — Energy 14,565 14,565 — — Industrials 66,519 66,517 2 — Consumer goods and services 25,688 25,688 — — Health care 40,103 40,103 — — Technology, media and telecommunications 17,508 17,508 — — Financial services 116,447 116,447 — — Nonredeemable preferred stocks 1,297 415 — 882 Total Available-for-Sale Equity Securities $ 304,566 $ 303,682 $ 2 $ 882 Total Available-for-Sale Securities $ 3,269,661 $ 303,682 $ 2,956,105 $ 9,874 TRADING Fixed maturities: Bonds Corporate bonds Industrials $ 2,220 $ — $ 2,220 $ — Consumer goods and services 1,535 — 1,535 — Health care 3,741 — 3,741 — Technology, media and telecommunications 1,221 — 1,221 — Financial services 5,566 — 5,566 — Redeemable preferred stocks 2,559 2,559 — — Equity securities: Public utilities 874 874 — — Energy 190 190 — — Industrials 989 989 — — Consumer goods and services 1,314 1,314 — — Health care 325 325 — — Financial services 198 198 — — Nonredeemable preferred stocks 2,541 2,541 — — Total Trading Securities $ 23,273 $ 8,990 $ 14,283 $ — Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 16,824 $ 16,824 $ — $ — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017 : June 30, 2018 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,792,019 $ — $ 1,791,280 $ 739 Discontinued operations — — — — Total Available-for-Sale Fixed Maturities $ 1,792,019 $ — $ 1,791,280 $ 739 TRADING Fixed maturities: Continuing operations $ 14,705 $ 2,840 $ 11,865 $ — Discontinued operations — — — — Total Trading Securities $ 14,705 $ 2,840 $ 11,865 $ — EQUITY SECURITIES Continuing operations $ 260,979 $ 260,310 $ — $ 669 Discontinued operations — — — — Total Equity Securities $ 260,979 $ 260,310 $ — $ 669 SHORT-TERM INVESTMENTS Continuing operations $ 175 $ 175 $ — $ — Discontinued operations — — — $ — Short-Term Investments $ 175 $ 175 $ — $ — MONEY MARKET ACCOUNTS Continuing operations $ 25,927 $ 25,927 $ — $ — Discontinued operations — — — — Money Market Accounts $ 25,927 $ 25,927 $ — $ — CORPORATE-OWNED LIFE INSURANCE Continuing operations $ 4,625 $ — $ 4,625 $ — Discontinued operations — — — — Corporate-Owned Life Insurance $ 4,625 $ — $ 4,625 $ — Total Assets Measured at Fair Value $ 2,098,430 $ 289,252 $ 1,807,770 $ 1,408 Note: The sale of the life insurance business was completed on March 30, 2018. December 31, 2017 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,535,070 $ — $ 1,534,323 $ 747 Discontinued operations 1,430,025 — 1,421,780 8,245 Total Available-for-Sale Fixed Maturities $ 2,965,095 $ — $ 2,956,103 $ 8,992 Equity securities: Continuing operations $ 280,913 $ 280,031 $ — $ 882 Discontinued operations 23,653 23,651 2 — Total Equity Securities $ 304,566 $ 303,682 $ 2 $ 882 Total Available-for-Sale Securities $ 3,269,661 $ 303,682 $ 2,956,105 $ 9,874 TRADING Fixed maturities: Continuing operations $ 16,842 $ 2,559 $ 14,283 $ — Discontinued operations — — — — Equity securities: Continuing operations 6,431 6,431 — — Discontinued operations — — — — Total Trading Securities $ 23,273 $ 8,990 $ 14,283 $ — SHORT-TERM INVESTMENTS Continuing operations $ 175 $ 175 $ — $ — Discontinued operations — — — — Short-Term Investments $ 175 $ 175 $ — $ — MONEY MARKET ACCOUNTS Continuing operations $ 6,147 $ 6,147 $ — $ — Discontinued operations 10,677 10,677 — — Money Market Accounts $ 16,824 $ 16,824 $ — $ — CORPORATE-OWNED LIFE INSURANCE Continuing operations $ 4,029 $ — $ 4,029 $ — Discontinued operations — — — — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 |
Changes in Fair Value of Level 3 Securities | The following table provides a summary of the changes in fair value of our Level 3 securities from continuing operations for the three-month period ended June 30, 2018 : Corporate bonds Asset-backed securities Equities Total Balance at March 31, 2018 $ 100 $ 632 $ 820 $ 1,552 Net unrealized gains (losses) (1) 7 (151 ) (144 ) Balance at June 30, 2018 $ 100 $ 639 $ 669 $ 1,408 (1) Net unrealized gains (losses) are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities from continuing operations for the six-month period ended June 30, 2018 : Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2018 $ 100 $ 647 $ 882 $ 1,629 Net unrealized losses (1) — (8 ) (213 ) (221 ) Balance at June 30, 2018 $ 100 $ 639 $ 669 $ 1,408 (1) Net unrealized losses are recorded as a component of comprehensive income. |
Carrying Value of Commercial Mortgage Loans by Loan-to-Value Ratio | The following tables present the carrying value of our commercial mortgage loans and additional information at June 30, 2018 and December 31, 2017 : Commercial Mortgage Loans June 30, 2018 December 31, 2017 Loan-to-value Carrying Value Carrying Value Less than 65% $ 9,896 — Total commercial mortgage loans $ 9,896 $ — |
Schedules of Concentration of Risk, by Risk Factor | Mortgage Loans by Region June 30, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 32.8 % $ — — % Southern Atlantic 6,651 67.2 — — Total mortgage loans $ 9,896 100.0 % $ — — % Mortgage Loans by Property Type June 30, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 3,245 32.8 % $ — — % Office 6,651 67.2 — — Total mortgage loans $ 9,896 100.0 % $ — — % |
Reserves for Losses and Loss 24
Reserves for Losses and Loss Settlement Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at June 30, 2018 and December 31, 2017 (net of reinsurance amounts): June 30, 2018 December 31, 2017 Gross liability for losses and loss settlement expenses $ 1,224,183 $ 1,123,896 Ceded losses and loss settlement expenses (59,871 ) (59,794 ) Net liability for losses and loss settlement expenses $ 1,164,312 $ 1,064,102 Losses and loss settlement expenses incurred Current year $ 382,259 $ 779,966 Prior years (48,385 ) (54,253 ) Total incurred $ 333,874 $ 725,713 Losses and loss settlement expense payments Current year $ 116,117 $ 311,972 Prior years 197,750 313,531 Total paid $ 313,867 $ 625,503 Net liability for losses and loss settlement expenses $ 1,184,319 $ 1,164,312 Ceded loss and loss settlement expenses 56,528 59,871 Gross liability for losses and loss settlement expenses $ 1,240,847 $ 1,224,183 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | The components of the net periodic benefit cost for our pension and postretirement benefit plans are as follows: Pension Plan Postretirement Benefit Plan Three Months Ended June 30, 2018 2017 2018 2017 Net periodic benefit cost Service cost $ 2,175 $ 1,714 $ 750 $ 505 Interest cost 1,875 1,765 502 482 Expected return on plan assets (2,626 ) (2,412 ) — — Amortization of prior service credit — — (1,352 ) (1,352 ) Amortization of net loss 1,072 891 589 461 Net periodic benefit cost $ 2,496 $ 1,958 $ 489 $ 96 Pension Plan Postretirement Benefit Plan Six Months Ended June 30, 2018 2017 2018 2017 Net periodic benefit cost Service cost $ 4,350 $ 3,427 $ 1,499 $ 1,010 Interest cost 3,750 3,530 1,004 964 Expected return on plan assets (5,251 ) (4,824 ) — — Amortization of prior service credit — — (2,704 ) (2,704 ) Amortization of net loss 2,143 1,782 1,178 922 Net periodic benefit cost $ 4,992 $ 3,915 $ 977 $ 192 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
Activity in Stock Award Plans | The activity in the Director Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Six Months Ended June 30, 2018 From Inception to June 30, 2018 Beginning balance 61,813 300,000 Number of awards granted (12,650 ) (274,840 ) Number of awards forfeited or expired — 24,003 Ending balance 49,163 49,163 Number of option awards exercised 15,599 104,880 Number of restricted stock awards vested 17,269 71,541 The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Six Months Ended June 30, 2018 From Inception to June 30, 2018 Beginning balance 996,828 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (157,527 ) (3,029,498 ) Number of awards forfeited or expired 37,394 506,193 Ending balance 876,695 876,695 Number of option awards exercised 198,726 1,284,621 Number of unrestricted stock awards granted — 8,470 Number of restricted stock awards vested 19,658 57,826 |
Remaining Stock-Based Compensation Expense | We expect this compensation to be recognized over the remainder of 2018 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2018 $ 2,636 2019 4,026 2020 2,348 2021 542 2022 37 Total $ 9,589 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share were as follows for the three-month periods ended June 30, 2018 and 2017 : Three Months Ended June 30, (In Thousands, Except Share Data) 2018 2017 Basic Diluted Basic Diluted Net income from continuing operations $ 157 $ 157 $ 109 $ 109 Weighted-average common shares outstanding 24,976,563 24,976,563 25,133,035 25,133,035 Add dilutive effect of restricted stock unit awards — 281,654 — 248,717 Add dilutive effect of stock options — 353,556 — 242,934 Weighted-average common shares outstanding 24,976,563 25,611,773 25,133,035 25,624,686 Earnings per common share from continuing operations $ 0.01 $ 0.01 $ 0.01 $ 0.01 Earnings per common share from discontinued operations — — 0.11 0.11 Earnings per common share $ 0.01 $ 0.01 $ 0.12 $ 0.12 Awards excluded from diluted earnings per share calculation (1) — 2,681 — — (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. The components of basic and diluted earnings per share were as follows for the six-month periods ended June 30, 2018 and 2017 : Six Months Ended June 30, (In Thousands, Except Share Data) 2018 2017 Basic Diluted Basic Diluted Net income from continuing operations $ 20,521 $ 20,521 $ 18,693 $ 18,693 Weighted-average common shares outstanding 24,946,335 24,946,335 25,288,068 25,288,068 Add dilutive effect of restricted stock unit awards — 281,654 — 248,717 Add dilutive effect of stock options — 354,719 — 215,740 Weighted-average common shares outstanding 24,946,335 25,582,708 25,288,068 25,752,525 Earnings per common share from continuing operations $ 0.82 $ 0.80 $ 0.74 $ 0.73 Earnings per common share from discontinued operations (0.08 ) (0.07 ) 0.17 0.16 Gain on sale of discontinued operations, net of taxes 1.10 1.07 — — Earnings per common share $ 1.84 $ 1.80 $ 0.91 $ 0.89 Awards excluded from diluted earnings per share calculation (1) — 2,681 — — (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the three-month period ended June 30, 2018 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of March 31, 2018 $ (10,627 ) $ (45,240 ) $ (55,867 ) Change in accumulated other comprehensive income before reclassifications (4,898 ) — (4,898 ) Reclassification adjustments from accumulated other comprehensive income (loss) 155 1,312 1,467 Balance as of June 30, 2018 $ (15,370 ) $ (43,928 ) $ (59,298 ) (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the six-month period ended June 30, 2018 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of January 1, 2018 $ 214,865 $ (46,551 ) $ 168,314 Cumulative effect of change in accounting principle (191,244 ) — (191,244 ) Change in accumulated other comprehensive income before reclassifications (39,117 ) — (39,117 ) Reclassification adjustments from accumulated other comprehensive income (loss) 126 2,623 2,749 Balance as of June 30, 2018 $ (15,370 ) $ (43,928 ) $ (59,298 ) (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The major assets and liability categories were as follows as of the dates indicated: Discontinued Operations Balance Sheets (In Thousands, Except Share Data) June 30, December 31, (unaudited) Assets Investments Fixed maturities Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017) $ — $ 34 Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017) — 1,430,025 Equity Securities at fair value (cost $0 in 2018 and $5,099 in 2017) — 23,653 Mortgage loans — 3,435 Policy loans — 5,815 Other long-term investments — 16,437 — 1,479,399 Cash and cash equivalents — 15,851 Deferred policy acquisition costs — 71,151 Other assets — 19,733 Total assets held for sale $ — $ 1,586,134 Liabilities Future policy benefits and losses $ — $ 1,320,401 Deferred income taxes — 18,716 Accrued expenses and other liabilities — 8,018 Total liabilities held for sale $ — $ 1,347,135 Note: The sale of the life insurance business was completed on March 30, 2018. Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In Thousands, Except Share Data) 2018 2017 2018 2017 Revenues Net premiums earned $ — $ 14,341 $ 13,003 $ 31,769 Investment income, net of investment expenses — 12,426 12,663 24,876 Net realized investment gains (losses) — 1,599 (1,057 ) 3,304 Other income — 126 146 324 Total revenues $ — $ 28,492 $ 24,755 $ 60,273 Benefits, Losses and Expenses Losses and loss settlement expenses $ — $ 9,102 $ 10,823 $ 20,173 Increase in liability for future policy benefits — 5,281 5,023 13,860 Amortization of deferred policy acquisition costs — 1,695 1,895 3,368 Other underwriting expenses — 3,377 3,864 7,008 Interest on policyholders’ accounts — 4,651 4,499 9,395 Total benefits, losses and expenses $ — $ 24,106 $ 26,104 $ 53,804 Income (loss) from discontinued operations before income taxes $ — $ 4,386 $ (1,349 ) $ 6,469 Federal income tax expense — 1,537 563 2,268 Net income (loss) from discontinued operations $ — $ 2,849 $ (1,912 ) $ 4,201 Earnings (loss) per common share from discontinued operations: Basic $ — $ 0.11 $ (0.08 ) $ 0.17 Diluted — 0.11 (0.07 ) 0.16 Note: The sale of the life insurance business was completed on March 30, 2018. |
Nature of Operations and Basi30
Nature of Operations and Basis of Presentation (Narrative) (Details) | Sep. 17, 2017segment | Jun. 30, 2018USD ($)state | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segmentstate | Jun. 30, 2017USD ($) | Jul. 24, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) |
Segment Reporting Information [Line Items] | |||||||
Number of business segments | segment | 2 | 1 | |||||
Payment for income taxes | $ 15,037,000 | $ 7,628,000 | |||||
Federal tax refund received | 1,503,000 | 10,000,000 | |||||
Interest payments | 0 | 0 | |||||
Decrease in DAC asset related to assumed realization of unrealized gains (losses) | $ 0 | 0 | $ 6,294,000 | ||||
Federal income tax expense (benefit) | (1,966,000) | $ (4,440,000) | (757,000) | (18,000) | |||
Liability for unrecognized tax benefits | 0 | 0 | 0 | ||||
Accumulated other comprehensive income (loss), net of tax | (59,298,000) | (59,298,000) | 168,314,000 | ||||
Retained earnings | $ 824,431,000 | $ 824,431,000 | 608,700,000 | ||||
Future minimum lease payments due | $ 22,500,000 | ||||||
Future minimum payments due as a percentage of total assets (less than) | 1.00% | ||||||
Property & Casualty Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of states in which we are licensed as insurer | state | 46 | 46 | |||||
Continuing and Discontinuing Operations | |||||||
Segment Reporting Information [Line Items] | |||||||
Federal income tax expense (benefit) | $ 7,350,000 | $ 2,250,000 | |||||
Accounting Standards Update 2016-01 | |||||||
Segment Reporting Information [Line Items] | |||||||
Accumulated other comprehensive income (loss), net of tax | $ (191,244,000) | ||||||
Net realized investment gain (loss) | $ 241,000 | $ (7,879,000) | |||||
Retained earnings | $ 191,200,000 | ||||||
Subsequent Event | |||||||
Segment Reporting Information [Line Items] | |||||||
Dividend declared (in dollars per share) | $ / shares | $ 3 | ||||||
Dividend payable | $ 75,000,000 |
Nature of Operations and Basi31
Nature of Operations and Basis of Presentation (Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Recorded asset at beginning of period | $ 88,102 | |
Impact of unrealized gains and losses on available-for-sale securities | 7,274 | $ (3,753) |
Recorded asset at end of period | 95,065 | |
Property & Casualty Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Recorded asset at beginning of period | 88,102 | |
Underwriting costs deferred | 107,412 | |
Amortization of deferred policy acquisition costs | (100,449) | |
Ending unamortized deferred policy acquisition costs | 95,065 | |
Impact of unrealized gains and losses on available-for-sale securities | 0 | |
Sale of discontinued operations | 0 | |
Recorded asset at end of period | 95,065 | |
Discontinued Operations | Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Recorded asset at beginning of period | 71,151 | |
Underwriting costs deferred | 1,376 | |
Amortization of deferred policy acquisition costs | (1,895) | |
Ending unamortized deferred policy acquisition costs | 70,632 | |
Impact of unrealized gains and losses on available-for-sale securities | 7,274 | |
Sale of discontinued operations | (77,906) | |
Recorded asset at end of period | 0 | |
Continuing and Discontinuing Operations | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Recorded asset at beginning of period | 159,253 | |
Underwriting costs deferred | 108,788 | |
Amortization of deferred policy acquisition costs | (102,344) | |
Ending unamortized deferred policy acquisition costs | 165,697 | |
Impact of unrealized gains and losses on available-for-sale securities | 7,274 | |
Sale of discontinued operations | (77,906) | |
Recorded asset at end of period | $ 95,065 |
Summary of Investments (Fair Va
Summary of Investments (Fair Value of Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
HELD-TO-MATURITY | ||
Amortized Cost | $ 150 | $ 150 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 150 | 150 |
Fixed maturities: | ||
Amortized Cost | 1,811,473 | 1,516,610 |
Gross Unrealized Appreciation | 9,555 | 27,412 |
Gross Unrealized Depreciation | 29,009 | 8,952 |
Fair Value | 1,792,019 | 1,535,070 |
Equity securities: | ||
Cost or Amortized Cost | 57,387 | |
Gross Unrealized Appreciation | 224,065 | |
Gross Unrealized Depreciation | 539 | |
Fair Value | 280,913 | |
Discontinued Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 0 | 34 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 0 | 34 |
Fixed maturities: | ||
Amortized Cost | 0 | 1,412,291 |
Gross Unrealized Appreciation | 0 | 25,055 |
Gross Unrealized Depreciation | 0 | 7,321 |
Fair Value | 0 | 1,430,025 |
Equity securities: | ||
Cost or Amortized Cost | 5,099 | |
Gross Unrealized Appreciation | 18,631 | |
Gross Unrealized Depreciation | 77 | |
Fair Value | 23,653 | |
Continuing and Discontinuing Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 150 | 184 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 150 | 184 |
Fixed maturities: | ||
Amortized Cost | 1,811,473 | 2,928,901 |
Gross Unrealized Appreciation | 9,555 | 52,467 |
Gross Unrealized Depreciation | 29,009 | 16,273 |
Fair Value | 1,792,019 | 2,965,095 |
Equity securities: | ||
Cost or Amortized Cost | 62,486 | |
Gross Unrealized Appreciation | 242,696 | |
Gross Unrealized Depreciation | 616 | |
Fair Value | 304,566 | |
Cost or Amortized Cost | 2,991,387 | |
Gross Unrealized Appreciation | 295,163 | |
Gross Unrealized Depreciation | 16,889 | |
Available-for-sale securities, fair value | 3,269,661 | |
Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 22,477 | 93,191 |
Gross Unrealized Appreciation | 111 | 1,972 |
Gross Unrealized Depreciation | 316 | 110 |
Fair Value | 22,272 | 95,053 |
Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 42,286 | 218,067 |
Gross Unrealized Appreciation | 143 | 3,881 |
Gross Unrealized Depreciation | 486 | 241 |
Fair Value | 41,943 | 221,707 |
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 44,100 | 183,253 |
Gross Unrealized Appreciation | 106 | 3,498 |
Gross Unrealized Depreciation | 680 | 494 |
Fair Value | 43,526 | 186,257 |
Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 13,071 | 74,125 |
Gross Unrealized Appreciation | 65 | 1,312 |
Gross Unrealized Depreciation | 159 | 29 |
Fair Value | 12,977 | 75,408 |
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 26,632 | 146,853 |
Gross Unrealized Appreciation | 43 | 2,376 |
Gross Unrealized Depreciation | 790 | 250 |
Fair Value | 25,885 | 148,979 |
Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 150 | 150 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 0 | 0 |
Fair Value | 150 | 150 |
Fixed maturities: | ||
Amortized Cost | 73,501 | 277,824 |
Gross Unrealized Appreciation | 182 | 5,769 |
Gross Unrealized Depreciation | 1,746 | 442 |
Fair Value | 71,937 | 283,151 |
Mortgage-backed securities | Continuing and Discontinuing Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 34 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | 34 | |
Fixed maturities: | ||
Amortized Cost | 8,382 | 13,828 |
Gross Unrealized Appreciation | 28 | 101 |
Gross Unrealized Depreciation | 223 | 238 |
Fair Value | 8,187 | 13,691 |
U.S. Treasury | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 120,272 | 17,073 |
Gross Unrealized Appreciation | 23 | 4 |
Gross Unrealized Depreciation | 341 | 186 |
Fair Value | 119,954 | 16,891 |
U.S. government agency | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 196,348 | 121,574 |
Gross Unrealized Appreciation | 633 | 1,311 |
Gross Unrealized Depreciation | 2,712 | 717 |
Fair Value | 194,269 | 122,168 |
States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 99,821 | 107,689 |
Gross Unrealized Appreciation | 893 | 2,446 |
Gross Unrealized Depreciation | 1,053 | 439 |
Fair Value | 99,661 | 109,696 |
States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 40,913 | 47,477 |
Gross Unrealized Appreciation | 385 | 1,174 |
Gross Unrealized Depreciation | 187 | 10 |
Fair Value | 41,111 | 48,641 |
States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 119,745 | 139,870 |
Gross Unrealized Appreciation | 612 | 2,462 |
Gross Unrealized Depreciation | 2,040 | 813 |
Fair Value | 118,317 | 141,519 |
States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 110,147 | 111,123 |
Gross Unrealized Appreciation | 916 | 2,351 |
Gross Unrealized Depreciation | 1,492 | 463 |
Fair Value | 109,571 | 113,011 |
States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 143,606 | 155,475 |
Gross Unrealized Appreciation | 1,368 | 3,620 |
Gross Unrealized Depreciation | 1,208 | 351 |
Fair Value | 143,766 | 158,744 |
States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 63,889 | 79,028 |
Gross Unrealized Appreciation | 426 | 1,351 |
Gross Unrealized Depreciation | 1,431 | 619 |
Fair Value | 62,884 | 79,760 |
States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 247,056 | 260,145 |
Gross Unrealized Appreciation | 1,414 | 5,218 |
Gross Unrealized Depreciation | 4,457 | 1,851 |
Fair Value | 244,013 | 263,512 |
States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 147,388 | 156,576 |
Gross Unrealized Appreciation | 1,251 | 2,929 |
Gross Unrealized Depreciation | 2,469 | 1,198 |
Fair Value | 146,170 | 158,307 |
Foreign bonds | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 7,751 | 51,361 |
Gross Unrealized Appreciation | 72 | 1,441 |
Gross Unrealized Depreciation | 0 | 49 |
Fair Value | 7,823 | 52,753 |
Public utilities | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 49,629 | 206,028 |
Gross Unrealized Appreciation | 196 | 3,386 |
Gross Unrealized Depreciation | 1,141 | 270 |
Fair Value | 48,684 | 209,144 |
Government national mortgage association | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 73,482 | 157,836 |
Gross Unrealized Appreciation | 181 | 1,921 |
Gross Unrealized Depreciation | 2,650 | 2,274 |
Fair Value | 71,013 | 157,483 |
Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 111,082 | 201,320 |
Gross Unrealized Appreciation | 136 | 1,879 |
Gross Unrealized Depreciation | 2,044 | 4,047 |
Fair Value | 109,174 | 199,152 |
Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 46,657 | 104,903 |
Gross Unrealized Appreciation | 46 | 1,703 |
Gross Unrealized Depreciation | 1,305 | 1,174 |
Fair Value | 45,398 | 105,432 |
Asset-backed securities | Continuing and Discontinuing Operations | ||
Fixed maturities: | ||
Amortized Cost | 3,238 | 4,282 |
Gross Unrealized Appreciation | 325 | 362 |
Gross Unrealized Depreciation | 79 | 8 |
Fair Value | $ 3,484 | 4,636 |
Common stocks | Public utilities | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 6,394 | |
Gross Unrealized Appreciation | 16,075 | |
Gross Unrealized Depreciation | 30 | |
Fair Value | 22,439 | |
Common stocks | Energy | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 6,514 | |
Gross Unrealized Appreciation | 8,171 | |
Gross Unrealized Depreciation | 120 | |
Fair Value | 14,565 | |
Common stocks | Industrials | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 13,117 | |
Gross Unrealized Appreciation | 53,522 | |
Gross Unrealized Depreciation | 120 | |
Fair Value | 66,519 | |
Common stocks | Consumer goods and services | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 10,110 | |
Gross Unrealized Appreciation | 15,742 | |
Gross Unrealized Depreciation | 164 | |
Fair Value | 25,688 | |
Common stocks | Health care | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 7,763 | |
Gross Unrealized Appreciation | 32,340 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | 40,103 | |
Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 6,067 | |
Gross Unrealized Appreciation | 11,556 | |
Gross Unrealized Depreciation | 115 | |
Fair Value | 17,508 | |
Common stocks | Financial services | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 11,529 | |
Gross Unrealized Appreciation | 104,985 | |
Gross Unrealized Depreciation | 67 | |
Fair Value | 116,447 | |
Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Equity securities: | ||
Cost or Amortized Cost | 992 | |
Gross Unrealized Appreciation | 305 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | $ 1,297 |
Summary of Investments (Maturit
Summary of Investments (Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Held-To-Maturity, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 150 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Amortized Cost | 150 | $ 150 |
Held-To-Maturity, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 150 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Fair Value | 150 | 150 |
Available-For-Sale, Amortized Cost | ||
Due in one year or less | 80,163 | |
Due after one year through five years | 276,772 | |
Due after five years through 10 years | 481,651 | |
Due after 10 years | 730,046 | |
Amortized Cost | 1,811,473 | 1,516,610 |
Available-For-Sale, Fair Value | ||
Due in one year or less | 80,314 | |
Due after one year through five years | 277,322 | |
Due after five years through 10 years | 479,036 | |
Due after 10 years | 718,091 | |
Fair Value | 1,792,019 | 1,535,070 |
Trading, Amortized Cost | ||
Due in one year or less | 1,807 | |
Due after one year through five years | 8,530 | |
Due after five years through 10 years | 1,100 | |
Due after 10 years | 1,267 | |
Amortized Cost | 12,704 | 14,582 |
Trading, Fair Value | ||
Due in one year or less | 1,871 | |
Due after one year through five years | 10,268 | |
Due after five years through 10 years | 1,020 | |
Due after 10 years | 1,546 | |
Fair Value | 14,705 | $ 16,842 |
Asset-backed securities | ||
Held-To-Maturity, Amortized Cost | ||
Securities not categorized by contractual maturity | 0 | |
Held-To-Maturity, Fair Value | ||
Securities not categorized by contractual maturity | 0 | |
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 3,238 | |
Available-For-Sale, Fair Value | ||
Securities not categorized by contractual maturity | 3,484 | |
Mortgage-backed securities | ||
Held-To-Maturity, Amortized Cost | ||
Securities not categorized by contractual maturity | 0 | |
Held-To-Maturity, Fair Value | ||
Securities not categorized by contractual maturity | 0 | |
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 8,382 | |
Available-For-Sale, Fair Value | ||
Securities not categorized by contractual maturity | 8,187 | |
Collateralized mortgage obligations | ||
Held-To-Maturity, Amortized Cost | ||
Securities not categorized by contractual maturity | 0 | |
Held-To-Maturity, Fair Value | ||
Securities not categorized by contractual maturity | 0 | |
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 231,221 | |
Available-For-Sale, Fair Value | ||
Securities not categorized by contractual maturity | $ 225,585 |
Summary of Investments (Net Rea
Summary of Investments (Net Realized Investment Gains and Losses and Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | $ 1,297 | $ 1,081 | $ (6,567) | $ 3,330 |
Debt Securities, Available-for-sale [Abstract] | ||||
Proceeds from sales | 23,994 | 23,994 | ||
Proceeds from sales | 0 | 1,096 | ||
Gross realized gains | 140 | 0 | 140 | 1,046 |
Gross realized losses | (307) | 0 | (307) | 0 |
Discontinued Operations | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 0 | 1,599 | (1,057) | 3,304 |
Debt Securities, Available-for-sale [Abstract] | ||||
Proceeds from sales | 0 | 0 | ||
Proceeds from sales | 0 | 3,963 | ||
Gross realized gains | 0 | 0 | 0 | 1,254 |
Gross realized losses | 0 | 0 | 0 | (78) |
Continuing and Discontinuing Operations | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 1,297 | 2,680 | (7,624) | 6,634 |
Fixed maturities | Available-for-sale | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | (219) | 103 | (193) | 527 |
Fixed maturities | Change in fair value | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | (148) | 176 | (259) | 547 |
Fixed maturities | Sales | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 349 | (11) | 905 | 46 |
Equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 1,315 | 524 | (7,020) | 1,921 |
Real estate | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | $ 0 | $ 289 | $ 0 | $ 289 |
Summary of Investments (Narrati
Summary of Investments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investments [Abstract] | |||
Sale of held-to-maturity securities | $ 0 | $ 0 | |
Trading securities | 14,705,000 | $ 16,842,000 | |
Remaining potential contractual obligation | $ 15,380,000 |
Summary of Investments (Unreali
Summary of Investments (Unrealized Appreciation) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in net unrealized investment appreciation | ||||
Available-for-sale fixed maturities | $ (65,127) | $ 32,132 | ||
Available-for-sale equity securities | 0 | 11,861 | ||
Deferred policy acquisition costs | 7,274 | (3,753) | ||
Income tax effect | 12,148 | (14,084) | ||
Net unrealized investment depreciation of discontinued operations, sold | 6,714 | 0 | ||
Cumulative change in accounting principles | $ (191,244) | $ 0 | ||
Total change in net unrealized investment appreciation, net of tax | $ (230,235) | $ 26,156 |
Summary of Investments (Investm
Summary of Investments (Investments in Unrealized Loss Position) (Details) $ in Thousands | Jun. 30, 2018USD ($)issue | Dec. 31, 2017USD ($)issue |
Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 169 | |
12 months or longer | issue | 183 | |
Fair Value | ||
Less than 12 months | $ 414,666 | |
12 months or longer | 471,075 | |
Total | 885,741 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 3,489 | |
12 months or longer | 13,400 | |
Total | $ 16,889 | |
U.S. Treasury | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 7 | |
12 months or longer | issue | 2 | |
Less than 12 months | issue | 5 | |
12 months or longer | issue | 2 | |
Fair Value | ||
Less than 12 months | $ 65,396 | |
12 months or longer | 4,687 | |
Total | 70,083 | |
Less than 12 months | $ 10,370 | |
12 months or longer | 5,765 | |
Total | 16,135 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 201 | |
12 months or longer | 140 | |
Total | $ 341 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 67 | |
12 months or longer | 119 | |
Total | $ 186 | |
U.S. government agency | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 26 | |
12 months or longer | issue | 2 | |
Less than 12 months | issue | 11 | |
12 months or longer | issue | 5 | |
Fair Value | ||
Less than 12 months | $ 126,009 | |
12 months or longer | 7,644 | |
Total | 133,653 | |
Less than 12 months | $ 64,842 | |
12 months or longer | 19,372 | |
Total | 84,214 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 2,357 | |
12 months or longer | 355 | |
Total | $ 2,712 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 390 | |
12 months or longer | 327 | |
Total | $ 717 | |
Fixed Maturities | ||
Number of Issues | ||
Less than 12 months | issue | 324 | 88 |
12 months or longer | issue | 121 | 112 |
Fair Value | ||
Less than 12 months | $ 744,296 | $ 232,489 |
12 months or longer | 296,165 | 302,815 |
Total | 1,040,461 | 535,304 |
Gross Unrealized Depreciation | ||
Less than 12 months | 14,292 | 1,791 |
12 months or longer | 14,717 | 7,161 |
Total | $ 29,009 | $ 8,952 |
Fixed Maturities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 324 | |
12 months or longer | issue | 121 | |
Less than 12 months | issue | 324 | 162 |
12 months or longer | issue | 121 | 173 |
Fair Value | ||
Less than 12 months | $ 744,296 | |
12 months or longer | 296,165 | |
Total | 1,040,461 | |
Less than 12 months | 744,296 | $ 413,380 |
12 months or longer | 296,165 | 470,440 |
Total | 1,040,461 | 883,820 |
Gross Unrealized Depreciation | ||
Less than 12 months | 14,292 | |
12 months or longer | 14,717 | |
Total | 29,009 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 14,292 | 3,206 |
12 months or longer | 14,717 | 13,067 |
Total | $ 29,009 | $ 16,273 |
Fixed Maturities | Discontinued Operations | ||
Number of Issues | ||
Less than 12 months | issue | 0 | 74 |
12 months or longer | issue | 0 | 61 |
Fair Value | ||
Less than 12 months | $ 0 | $ 180,891 |
12 months or longer | 0 | 167,625 |
Total | 0 | 348,516 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 1,415 |
12 months or longer | 0 | 5,906 |
Total | $ 0 | $ 7,321 |
States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 13 | |
12 months or longer | issue | 3 | |
Less than 12 months | issue | 2 | |
12 months or longer | issue | 3 | |
Fair Value | ||
Less than 12 months | $ 19,600 | |
12 months or longer | 19,177 | |
Total | 38,777 | |
Less than 12 months | $ 2,177 | |
12 months or longer | 19,729 | |
Total | 21,906 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 140 | |
12 months or longer | 913 | |
Total | $ 1,053 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 8 | |
12 months or longer | 431 | |
Total | $ 439 | |
States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 4 | |
12 months or longer | issue | 1 | |
Less than 12 months | issue | 0 | |
12 months or longer | issue | 1 | |
Fair Value | ||
Less than 12 months | $ 13,208 | |
12 months or longer | 3,534 | |
Total | 16,742 | |
Less than 12 months | $ 0 | |
12 months or longer | 3,644 | |
Total | 3,644 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 78 | |
12 months or longer | 109 | |
Total | $ 187 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | |
12 months or longer | 10 | |
Total | $ 10 | |
States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 17 | |
12 months or longer | issue | 11 | |
Less than 12 months | issue | 3 | |
12 months or longer | issue | 11 | |
Fair Value | ||
Less than 12 months | $ 35,461 | |
12 months or longer | 28,623 | |
Total | 64,084 | |
Less than 12 months | $ 7,959 | |
12 months or longer | 29,545 | |
Total | 37,504 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 503 | |
12 months or longer | 1,537 | |
Total | $ 2,040 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 32 | |
12 months or longer | 781 | |
Total | $ 813 | |
States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 12 | |
12 months or longer | issue | 8 | |
Less than 12 months | issue | 2 | |
12 months or longer | issue | 8 | |
Fair Value | ||
Less than 12 months | $ 28,125 | |
12 months or longer | 24,959 | |
Total | 53,084 | |
Less than 12 months | $ 5,944 | |
12 months or longer | 25,755 | |
Total | 31,699 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 388 | |
12 months or longer | 1,104 | |
Total | $ 1,492 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 18 | |
12 months or longer | 445 | |
Total | $ 463 | |
States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 18 | |
12 months or longer | issue | 7 | |
Less than 12 months | issue | 2 | |
12 months or longer | issue | 7 | |
Fair Value | ||
Less than 12 months | $ 33,830 | |
12 months or longer | 18,510 | |
Total | 52,340 | |
Less than 12 months | $ 3,486 | |
12 months or longer | 19,130 | |
Total | 22,616 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 356 | |
12 months or longer | 852 | |
Total | $ 1,208 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 15 | |
12 months or longer | 336 | |
Total | $ 351 | |
States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 4 | |
12 months or longer | issue | 11 | |
Less than 12 months | issue | 1 | |
12 months or longer | issue | 11 | |
Fair Value | ||
Less than 12 months | $ 12,472 | |
12 months or longer | 27,636 | |
Total | 40,108 | |
Less than 12 months | $ 4,471 | |
12 months or longer | 28,476 | |
Total | 32,947 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 120 | |
12 months or longer | 1,311 | |
Total | $ 1,431 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 37 | |
12 months or longer | 582 | |
Total | $ 619 | |
States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 30 | |
12 months or longer | issue | 26 | |
Less than 12 months | issue | 8 | |
12 months or longer | issue | 27 | |
Fair Value | ||
Less than 12 months | $ 61,106 | |
12 months or longer | 65,618 | |
Total | 126,724 | |
Less than 12 months | $ 7,749 | |
12 months or longer | 69,917 | |
Total | 77,666 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 1,034 | |
12 months or longer | 3,423 | |
Total | $ 4,457 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 107 | |
12 months or longer | 1,744 | |
Total | $ 1,851 | |
States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 17 | |
12 months or longer | issue | 21 | |
Less than 12 months | issue | 3 | |
12 months or longer | issue | 22 | |
Fair Value | ||
Less than 12 months | $ 31,156 | |
12 months or longer | 52,290 | |
Total | 83,446 | |
Less than 12 months | $ 5,424 | |
12 months or longer | 56,753 | |
Total | 62,177 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 237 | |
12 months or longer | 2,232 | |
Total | $ 2,469 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 16 | |
12 months or longer | 1,182 | |
Total | $ 1,198 | |
Foreign bonds | ||
Number of Issues | ||
Less than 12 months | issue | 1 | |
12 months or longer | issue | 0 | |
Fair Value | ||
Less than 12 months | $ 857 | |
12 months or longer | 0 | |
Total | 857 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 49 | |
12 months or longer | 0 | |
Total | $ 49 | |
Public utilities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 19 | |
12 months or longer | issue | 0 | |
Less than 12 months | issue | 8 | |
12 months or longer | issue | 5 | |
Fair Value | ||
Less than 12 months | $ 39,933 | |
12 months or longer | 0 | |
Total | 39,933 | |
Less than 12 months | $ 19,186 | |
12 months or longer | 8,446 | |
Total | 27,632 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 1,141 | |
12 months or longer | 0 | |
Total | $ 1,141 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 79 | |
12 months or longer | 191 | |
Total | $ 270 | |
Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 7 | |
12 months or longer | issue | 0 | |
Less than 12 months | issue | 1 | |
12 months or longer | issue | 1 | |
Fair Value | ||
Less than 12 months | $ 10,465 | |
12 months or longer | 0 | |
Total | 10,465 | |
Less than 12 months | $ 2,236 | |
12 months or longer | 1,606 | |
Total | 3,842 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 316 | |
12 months or longer | 0 | |
Total | $ 316 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 13 | |
12 months or longer | 97 | |
Total | $ 110 | |
Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 8 | |
12 months or longer | issue | 0 | |
Less than 12 months | issue | 10 | |
12 months or longer | issue | 2 | |
Fair Value | ||
Less than 12 months | $ 22,206 | |
12 months or longer | 0 | |
Total | 22,206 | |
Less than 12 months | $ 27,773 | |
12 months or longer | 4,275 | |
Total | 32,048 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 486 | |
12 months or longer | 0 | |
Total | $ 486 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 146 | |
12 months or longer | 95 | |
Total | $ 241 | |
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 14 | |
12 months or longer | issue | 0 | |
Less than 12 months | issue | 14 | |
12 months or longer | issue | 3 | |
Fair Value | ||
Less than 12 months | $ 28,226 | |
12 months or longer | 0 | |
Total | 28,226 | |
Less than 12 months | $ 32,781 | |
12 months or longer | 6,813 | |
Total | 39,594 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 680 | |
12 months or longer | 0 | |
Total | $ 680 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 248 | |
12 months or longer | 246 | |
Total | $ 494 | |
Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 4 | |
12 months or longer | issue | 0 | |
Less than 12 months | issue | 4 | |
12 months or longer | issue | 0 | |
Fair Value | ||
Less than 12 months | $ 6,489 | |
12 months or longer | 0 | |
Total | 6,489 | |
Less than 12 months | $ 9,947 | |
12 months or longer | 0 | |
Total | 9,947 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 159 | |
12 months or longer | 0 | |
Total | $ 159 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 29 | |
12 months or longer | 0 | |
Total | $ 29 | |
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 10 | |
12 months or longer | issue | 0 | |
Less than 12 months | issue | 12 | |
12 months or longer | issue | 3 | |
Fair Value | ||
Less than 12 months | $ 22,147 | |
12 months or longer | 0 | |
Total | 22,147 | |
Less than 12 months | $ 35,319 | |
12 months or longer | 10,413 | |
Total | 45,732 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 790 | |
12 months or longer | 0 | |
Total | $ 790 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 122 | |
12 months or longer | 128 | |
Total | $ 250 | |
Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 21 | |
12 months or longer | issue | 1 | |
Less than 12 months | issue | 22 | |
12 months or longer | issue | 4 | |
Fair Value | ||
Less than 12 months | $ 49,917 | |
12 months or longer | 5,293 | |
Total | 55,210 | |
Less than 12 months | $ 50,144 | |
12 months or longer | 11,389 | |
Total | 61,533 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 1,440 | |
12 months or longer | 306 | |
Total | $ 1,746 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 256 | |
12 months or longer | 186 | |
Total | $ 442 | |
Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 34 | |
12 months or longer | issue | 11 | |
Less than 12 months | issue | 10 | |
12 months or longer | issue | 10 | |
Fair Value | ||
Less than 12 months | $ 4,217 | |
12 months or longer | 2,012 | |
Total | 6,229 | |
Less than 12 months | $ 2,458 | |
12 months or longer | 6,641 | |
Total | 9,099 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 113 | |
12 months or longer | 110 | |
Total | $ 223 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 18 | |
12 months or longer | 220 | |
Total | $ 238 | |
Government national mortgage association | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 21 | |
12 months or longer | issue | 7 | |
Less than 12 months | issue | 20 | |
12 months or longer | issue | 17 | |
Fair Value | ||
Less than 12 months | $ 50,094 | |
12 months or longer | 11,744 | |
Total | 61,838 | |
Less than 12 months | $ 49,764 | |
12 months or longer | 46,969 | |
Total | 96,733 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 1,766 | |
12 months or longer | 884 | |
Total | $ 2,650 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 629 | |
12 months or longer | 1,645 | |
Total | $ 2,274 | |
Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 20 | |
12 months or longer | issue | 7 | |
Less than 12 months | issue | 11 | |
12 months or longer | issue | 20 | |
Fair Value | ||
Less than 12 months | $ 46,374 | |
12 months or longer | 17,556 | |
Total | 63,930 | |
Less than 12 months | $ 37,543 | |
12 months or longer | 75,679 | |
Total | 113,222 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 964 | |
12 months or longer | 1,080 | |
Total | $ 2,044 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 577 | |
12 months or longer | 3,470 | |
Total | $ 4,047 | |
Federal national mortgage association | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 17 | |
12 months or longer | issue | 3 | |
Less than 12 months | issue | 11 | |
12 months or longer | issue | 11 | |
Fair Value | ||
Less than 12 months | $ 35,019 | |
12 months or longer | 6,882 | |
Total | 41,901 | |
Less than 12 months | $ 31,958 | |
12 months or longer | 20,123 | |
Total | 52,081 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 944 | |
12 months or longer | 361 | |
Total | $ 1,305 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 342 | |
12 months or longer | 832 | |
Total | $ 1,174 | |
Asset-backed securities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 1 | |
12 months or longer | issue | 0 | |
Less than 12 months | issue | 1 | |
12 months or longer | issue | 0 | |
Fair Value | ||
Less than 12 months | $ 2,846 | |
12 months or longer | 0 | |
Total | 2,846 | |
Less than 12 months | $ 992 | |
12 months or longer | 0 | |
Total | 992 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 79 | |
12 months or longer | 0 | |
Total | $ 79 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 8 | |
12 months or longer | 0 | |
Total | $ 8 | |
Common stocks | Public utilities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 0 | |
12 months or longer | issue | 1 | |
Fair Value | ||
Less than 12 months | $ 0 | |
12 months or longer | 278 | |
Total | 278 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | |
12 months or longer | 30 | |
Total | $ 30 | |
Common stocks | Energy | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 2 | |
12 months or longer | issue | 0 | |
Fair Value | ||
Less than 12 months | $ 528 | |
12 months or longer | 0 | |
Total | 528 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 120 | |
12 months or longer | 0 | |
Total | $ 120 | |
Common stocks | Industrials | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 1 | |
12 months or longer | issue | 5 | |
Fair Value | ||
Less than 12 months | $ 99 | |
12 months or longer | 193 | |
Total | 292 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 13 | |
12 months or longer | 107 | |
Total | $ 120 | |
Common stocks | Consumer goods and services | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 0 | |
12 months or longer | issue | 2 | |
Fair Value | ||
Less than 12 months | $ 0 | |
12 months or longer | 151 | |
Total | 151 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | |
12 months or longer | 164 | |
Total | $ 164 | |
Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 2 | |
12 months or longer | issue | 1 | |
Fair Value | ||
Less than 12 months | $ 466 | |
12 months or longer | 4 | |
Total | 470 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 95 | |
12 months or longer | 20 | |
Total | $ 115 | |
Common stocks | Financial services | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 2 | |
12 months or longer | issue | 1 | |
Fair Value | ||
Less than 12 months | $ 193 | |
12 months or longer | 9 | |
Total | 202 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 55 | |
12 months or longer | 12 | |
Total | $ 67 | |
Equity securities | ||
Number of Issues | ||
Less than 12 months | issue | 5 | |
12 months or longer | issue | 6 | |
Fair Value | ||
Less than 12 months | $ 1,129 | |
12 months or longer | 385 | |
Total | 1,514 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 236 | |
12 months or longer | 303 | |
Total | $ 539 | |
Equity securities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Less than 12 months | issue | 7 | |
12 months or longer | issue | 10 | |
Fair Value | ||
Less than 12 months | $ 1,286 | |
12 months or longer | 635 | |
Total | 1,921 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 283 | |
12 months or longer | 333 | |
Total | $ 616 | |
Equity securities | Discontinued Operations | ||
Number of Issues | ||
Less than 12 months | issue | 2 | |
12 months or longer | issue | 4 | |
Fair Value | ||
Less than 12 months | $ 157 | |
12 months or longer | 250 | |
Total | 407 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 47 | |
12 months or longer | 30 | |
Total | $ 77 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Narrative) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Rabbi Trust | Other Assets | Level 2 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cash surrender value | $ 4,625 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments (Carrying Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments | ||
Held-to-maturity securities | $ 150 | $ 150 |
Available-for-sale, debt securities | 1,792,019 | 1,535,070 |
Available-for-sale, equity securities | 280,913 | |
Trading securities | 14,705 | 16,842 |
Equity securities | 260,979 | 287,344 |
Discontinued Operations | ||
Investments | ||
Held-to-maturity securities | 0 | 34 |
Available-for-sale, debt securities | 0 | 1,430,025 |
Available-for-sale, equity securities | 23,653 | |
Fair Value | ||
Investments | ||
Held-to-maturity securities | 150 | 150 |
Available-for-sale, debt securities | 1,792,019 | 1,535,070 |
Trading securities | 14,705 | 16,842 |
Equity securities | 260,979 | 287,344 |
Mortgage loans | 9,896 | 0 |
Other long-term investments | 43,949 | 49,352 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 100,840 | 95,562 |
Corporate-owned life insurance | 4,625 | 4,029 |
Fair Value | Discontinued Operations | ||
Investments | ||
Held-to-maturity securities | 0 | 34 |
Available-for-sale, debt securities | 0 | 1,430,025 |
Available-for-sale, equity securities | 23,653 | |
Mortgage loans | 0 | 3,594 |
Policy loans | 0 | 5,815 |
Other long-term investments | 0 | 16,437 |
Cash and cash equivalents | 0 | 15,851 |
Policy reserves | ||
Annuity (accumulations) | 0 | 591,702 |
Annuity (benefit payments) | 0 | 147,038 |
Carrying Value | ||
Investments | ||
Held-to-maturity securities | 150 | 150 |
Available-for-sale, debt securities | 1,792,019 | 1,535,070 |
Trading securities | 14,705 | 16,842 |
Equity securities | 260,979 | 287,344 |
Mortgage loans | 9,896 | 0 |
Other long-term investments | 43,949 | 49,352 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 100,840 | 95,562 |
Corporate-owned life insurance | 4,625 | 4,029 |
Carrying Value | Discontinued Operations | ||
Investments | ||
Held-to-maturity securities | 0 | 34 |
Available-for-sale, debt securities | 0 | 1,430,025 |
Available-for-sale, equity securities | 23,653 | |
Mortgage loans | 0 | 3,435 |
Policy loans | 0 | 5,815 |
Other long-term investments | 0 | 16,437 |
Cash and cash equivalents | 0 | 15,851 |
Policy reserves | ||
Annuity (accumulations) | 0 | 611,866 |
Annuity (benefit payments) | $ 0 | $ 93,560 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | $ 1,792,019 | $ 1,535,070 |
Available-for-sale, equity securities | 280,913 | |
Trading securities | 14,705 | 16,842 |
Equity securities | 260,979 | 287,344 |
Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 1,430,025 |
Available-for-sale, equity securities | 23,653 | |
Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 1,792,019 | 2,965,095 |
Available-for-sale, equity securities | 304,566 | |
Available-for-sale securities, fair value | 3,269,661 | |
U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 119,954 | 16,891 |
U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 194,269 | 122,168 |
States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 99,661 | 109,696 |
States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 41,111 | 48,641 |
States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 118,317 | 141,519 |
States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 109,571 | 113,011 |
States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 143,766 | 158,744 |
States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 62,884 | 79,760 |
States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 244,013 | 263,512 |
States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 146,170 | 158,307 |
Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 7,823 | 52,753 |
Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 48,684 | 209,144 |
Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 22,272 | 95,053 |
Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 41,943 | 221,707 |
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 43,526 | 186,257 |
Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 12,977 | 75,408 |
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 25,885 | 148,979 |
Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 71,937 | 283,151 |
Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 8,187 | 13,691 |
Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 71,013 | 157,483 |
Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 109,174 | 199,152 |
Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 45,398 | 105,432 |
Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 3,484 | 4,636 |
Common stocks | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 22,439 | |
Common stocks | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 14,565 | |
Common stocks | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 66,519 | |
Common stocks | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 25,688 | |
Common stocks | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 40,103 | |
Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 17,508 | |
Common stocks | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 116,447 | |
Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 1,297 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 175 | 175 |
Money Market Accounts | 25,927 | 6,147 |
Corporate-Owned Life Insurance | 4,625 | 4,029 |
Recurring | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 10,677 |
Corporate-Owned Life Insurance | 0 | 0 |
Recurring | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 1,792,019 | |
Available-for-sale securities, fair value | 3,269,661 | |
Trading securities | 14,705 | 23,273 |
Equity securities | 260,979 | |
Short-Term Investments | 175 | 175 |
Money Market Accounts | 25,927 | 16,824 |
Corporate-Owned Life Insurance | 4,625 | 4,029 |
Total Assets Measured at Fair Value | 2,098,430 | 3,313,962 |
Recurring | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 119,954 | 16,891 |
Recurring | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 194,269 | 122,168 |
Recurring | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 99,661 | 109,696 |
Recurring | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 41,111 | 48,641 |
Recurring | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 118,317 | 141,519 |
Recurring | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 109,571 | 113,011 |
Recurring | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 143,766 | 158,744 |
Recurring | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 62,884 | 79,760 |
Recurring | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 244,013 | 263,512 |
Recurring | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 146,170 | 158,307 |
Recurring | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 7,823 | 52,753 |
Recurring | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 48,684 | 209,144 |
Recurring | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 22,272 | 95,053 |
Recurring | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 41,943 | 221,707 |
Trading securities | 2,099 | 2,220 |
Recurring | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 43,526 | 186,257 |
Trading securities | 1,772 | 1,535 |
Recurring | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 12,977 | 75,408 |
Trading securities | 3,914 | 3,741 |
Recurring | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 25,885 | 148,979 |
Trading securities | 1,960 | 1,221 |
Recurring | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 71,937 | 283,151 |
Trading securities | 2,120 | 5,566 |
Recurring | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 8,187 | 13,691 |
Recurring | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 71,013 | 157,483 |
Recurring | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 109,174 | 199,152 |
Recurring | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 45,398 | 105,432 |
Recurring | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 3,484 | 4,636 |
Recurring | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 1,792,019 | 1,535,070 |
Trading securities | 14,705 | 16,842 |
Recurring | Fixed Maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 1,430,025 |
Trading securities | 0 | 0 |
Recurring | Fixed Maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 2,965,095 | |
Recurring | Common stocks | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 22,439 | |
Equity securities | 15,565 | |
Recurring | Common stocks | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 14,565 | |
Equity securities | 14,029 | |
Recurring | Common stocks | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 66,519 | |
Equity securities | 58,683 | |
Recurring | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 25,688 | |
Equity securities | 24,328 | |
Recurring | Common stocks | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 40,103 | |
Equity securities | 19,503 | |
Recurring | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 17,508 | |
Equity securities | 14,624 | |
Recurring | Common stocks | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 116,447 | |
Equity securities | 110,222 | |
Recurring | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 1,297 | |
Trading securities | 2,541 | |
Equity securities | 4,025 | |
Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 280,913 | |
Trading securities | 6,431 | |
Equity securities | 260,979 | |
Recurring | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 23,653 | |
Trading securities | 0 | |
Equity securities | 0 | |
Recurring | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 304,566 | |
Recurring | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 874 | |
Recurring | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 190 | |
Recurring | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 989 | |
Recurring | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 1,314 | |
Recurring | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 325 | |
Recurring | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 198 | |
Recurring | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,840 | 2,559 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 175 | 175 |
Money Market Accounts | 25,927 | 6,147 |
Corporate-Owned Life Insurance | 0 | 0 |
Recurring | Level 1 | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 10,677 |
Corporate-Owned Life Insurance | 0 | 0 |
Recurring | Level 1 | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | |
Available-for-sale securities, fair value | 303,682 | |
Trading securities | 2,840 | 8,990 |
Equity securities | 260,310 | |
Short-Term Investments | 175 | 175 |
Money Market Accounts | 25,927 | 16,824 |
Corporate-Owned Life Insurance | 0 | 0 |
Total Assets Measured at Fair Value | 289,252 | 329,671 |
Recurring | Level 1 | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 1 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 2,840 | 2,559 |
Recurring | Level 1 | Fixed Maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Fixed Maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | |
Recurring | Level 1 | Common stocks | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 22,439 | |
Equity securities | 15,565 | |
Recurring | Level 1 | Common stocks | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 14,565 | |
Equity securities | 14,029 | |
Recurring | Level 1 | Common stocks | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 66,517 | |
Equity securities | 58,683 | |
Recurring | Level 1 | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 25,688 | |
Equity securities | 24,328 | |
Recurring | Level 1 | Common stocks | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 40,103 | |
Equity securities | 19,503 | |
Recurring | Level 1 | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 17,508 | |
Equity securities | 14,624 | |
Recurring | Level 1 | Common stocks | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 116,447 | |
Equity securities | 110,222 | |
Recurring | Level 1 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 415 | |
Trading securities | 2,541 | |
Equity securities | 3,356 | |
Recurring | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 280,031 | |
Trading securities | 6,431 | |
Equity securities | 260,310 | |
Recurring | Level 1 | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 23,651 | |
Trading securities | 0 | |
Equity securities | 0 | |
Recurring | Level 1 | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 303,682 | |
Recurring | Level 1 | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 874 | |
Recurring | Level 1 | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 190 | |
Recurring | Level 1 | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 989 | |
Recurring | Level 1 | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 1,314 | |
Recurring | Level 1 | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 325 | |
Recurring | Level 1 | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 198 | |
Recurring | Level 1 | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,840 | 2,559 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 4,625 | 4,029 |
Recurring | Level 2 | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 0 | 0 |
Recurring | Level 2 | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 1,791,280 | |
Available-for-sale securities, fair value | 2,956,105 | |
Trading securities | 11,865 | 14,283 |
Equity securities | 0 | |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 4,625 | 4,029 |
Total Assets Measured at Fair Value | 1,807,770 | 2,974,417 |
Recurring | Level 2 | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 119,954 | 16,891 |
Recurring | Level 2 | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 194,269 | 122,168 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 99,661 | 109,696 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 41,111 | 48,641 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 118,317 | 141,519 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 109,571 | 113,011 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 143,766 | 158,744 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 62,884 | 79,760 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 244,013 | 263,512 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 146,170 | 158,307 |
Recurring | Level 2 | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 7,823 | 52,753 |
Recurring | Level 2 | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 48,684 | 209,144 |
Recurring | Level 2 | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 22,272 | 95,053 |
Recurring | Level 2 | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 41,943 | 221,707 |
Trading securities | 2,099 | 2,220 |
Recurring | Level 2 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 43,526 | 185,589 |
Trading securities | 1,772 | 1,535 |
Recurring | Level 2 | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 12,977 | 75,408 |
Trading securities | 3,914 | 3,741 |
Recurring | Level 2 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 25,885 | 148,979 |
Trading securities | 1,960 | 1,221 |
Recurring | Level 2 | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 71,837 | 275,474 |
Trading securities | 2,120 | 5,566 |
Recurring | Level 2 | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 8,187 | 13,691 |
Recurring | Level 2 | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 71,013 | 157,483 |
Recurring | Level 2 | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 109,174 | 199,152 |
Recurring | Level 2 | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 45,398 | 105,432 |
Recurring | Level 2 | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 2,845 | 3,989 |
Recurring | Level 2 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 1,791,280 | 1,534,323 |
Trading securities | 11,865 | 14,283 |
Recurring | Level 2 | Fixed Maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 1,421,780 |
Trading securities | 0 | 0 |
Recurring | Level 2 | Fixed Maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 2,956,103 | |
Recurring | Level 2 | Common stocks | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Common stocks | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Common stocks | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 2 | |
Equity securities | 0 | |
Recurring | Level 2 | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Common stocks | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Common stocks | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Trading securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Trading securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 2 | |
Trading securities | 0 | |
Equity securities | 0 | |
Recurring | Level 2 | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 2 | |
Recurring | Level 2 | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 2 | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 2 | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 2 | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 2 | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 2 | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 2 | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 0 | 0 |
Recurring | Level 3 | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 0 | 0 |
Recurring | Level 3 | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 739 | |
Available-for-sale securities, fair value | 9,874 | |
Trading securities | 0 | 0 |
Equity securities | 669 | |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 0 | 0 |
Total Assets Measured at Fair Value | 1,408 | 9,874 |
Recurring | Level 3 | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 668 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 100 | 7,677 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 0 |
Recurring | Level 3 | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 639 | 647 |
Recurring | Level 3 | Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 739 | 747 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Fixed Maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 0 | 8,245 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Fixed Maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, debt securities | 8,992 | |
Recurring | Level 3 | Common stocks | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Common stocks | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Common stocks | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Common stocks | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Common stocks | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 882 | |
Trading securities | 0 | |
Equity securities | 669 | |
Recurring | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 882 | |
Trading securities | 0 | |
Equity securities | 669 | |
Recurring | Level 3 | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0 | |
Trading securities | 0 | |
Equity securities | 0 | |
Recurring | Level 3 | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 882 | |
Recurring | Level 3 | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 3 | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 3 | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 3 | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 3 | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 3 | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Recurring | Level 3 | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 0 | $ 0 |
Fair Value of Financial Instr41
Fair Value of Financial Instruments (Level 3 Securities) (Details) - Recurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 1,552 | $ 1,629 |
Net unrealized gains (losses) | (144) | (221) |
Ending Balance | 1,408 | 1,408 |
Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 100 | 100 |
Net unrealized gains (losses) | 0 | |
Ending Balance | 100 | 100 |
Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 632 | 647 |
Net unrealized gains (losses) | 7 | (8) |
Ending Balance | 639 | 639 |
Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 820 | 882 |
Net unrealized gains (losses) | (151) | (213) |
Ending Balance | $ 669 | $ 669 |
Fair Value of Financial Instr42
Fair Value of Financial Instruments (Carrying Value of Commercial Mortgage Loans and Additional Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 9,896 | $ 0 |
Total mortgage loans | Mortgage Loans by Region | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 9,896 | $ 0 |
Percent of Total | 100.00% | 0.00% |
Total mortgage loans | Mortgage Loans by Region | East North Central | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,245 | $ 0 |
Percent of Total | 32.80% | 0.00% |
Total mortgage loans | Mortgage Loans by Region | Southern Atlantic | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 6,651 | $ 0 |
Percent of Total | 67.20% | 0.00% |
Total mortgage loans | Mortgage Loans by Property Type | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 9,896 | $ 0 |
Percent of Total | 100.00% | 0.00% |
Total mortgage loans | Mortgage Loans by Property Type | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,245 | $ 0 |
Percent of Total | 32.80% | 0.00% |
Total mortgage loans | Mortgage Loans by Property Type | Office | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 6,651 | $ 0 |
Percent of Total | 67.20% | 0.00% |
Less than 65% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 9,896 | $ 0 |
Reserves for Losses and Loss 43
Reserves for Losses and Loss Settlement Expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross liability for losses and loss settlement expenses at beginning of year | $ 1,224,183 | $ 1,123,896 |
Ceded losses and loss settlement expenses | (59,871) | (59,794) |
Net liability for losses and loss settlement expenses at beginning of year | 1,164,312 | 1,064,102 |
Losses and loss settlement expenses incurred for claims occurring during | ||
Current year | 382,259 | 779,966 |
Prior years | (48,385) | (54,253) |
Total incurred | 333,874 | 725,713 |
Losses and loss settlement expense payments for claims occurring during | ||
Current year | 116,117 | 311,972 |
Prior years | 197,750 | 313,531 |
Total paid | 313,867 | 625,503 |
Net liability for losses and loss settlement expenses at end of year | 1,184,319 | 1,164,312 |
Ceded loss and loss settlement expenses | 56,528 | 59,871 |
Gross liability for losses and loss settlement expenses at end of period | $ 1,240,847 | $ 1,224,183 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Pension Plan | |||||
Net periodic benefit cost | |||||
Service cost | $ 2,175 | $ 1,714 | $ 4,350 | $ 3,427 | |
Interest cost | 1,875 | 1,765 | 3,750 | 3,530 | |
Expected return on plan assets | (2,626) | (2,412) | (5,251) | (4,824) | |
Amortization of prior service credit | 0 | 0 | 0 | 0 | |
Amortization of net loss | 1,072 | 891 | 2,143 | 1,782 | |
Net periodic benefit cost | 2,496 | 1,958 | 4,992 | 3,915 | |
Estimated 2018 pension plan contribution, disclosed in prior year 10K | $ 6,400 | ||||
Contribution by employer | 3,200 | ||||
Postretirement Benefit Plan | |||||
Net periodic benefit cost | |||||
Service cost | 750 | 505 | 1,499 | 1,010 | |
Interest cost | 502 | 482 | 1,004 | 964 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of prior service credit | (1,352) | (1,352) | (2,704) | (2,704) | |
Amortization of net loss | 589 | 461 | 1,178 | 922 | |
Net periodic benefit cost | $ 489 | $ 96 | $ 977 | $ 192 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 114 Months Ended | |||||
May 31, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2008 | Dec. 31, 2004 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ 1,437 | $ 1,210 | $ 2,718 | $ 2,254 | |||||
Stock-based compensation expense to be recognized through results of operations | $ 9,589 | $ 9,589 | $ 9,589 | ||||||
Employee Stock Award Plan-2008 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares available for issuance (in shares) | 876,695 | 876,695 | 876,695 | 996,828 | 1,900,000 | ||||
Additional shares authorized (in shares) | 1,500,000 | 0 | 1,500,000 | ||||||
Employee Stock Award Plan-2008 | Restricted Stock Awards | Share-based Compensation Award, Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Employee Stock Award Plan-2008 | Restricted Stock Awards | Share-based Compensation Award, Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Employee Stock Award Plan-2008 | Options Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period | 10 years | ||||||||
Director Plan - 2005 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares available for issuance (in shares) | 49,163 | 49,163 | 49,163 | 61,813 | 300,000 |
Stock-Based Compensation (Activ
Stock-Based Compensation (Activity in the Stock Plan) (Details) - shares | 1 Months Ended | 6 Months Ended | 114 Months Ended | 162 Months Ended |
May 31, 2014 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | |
Employee Stock Award Plan-2008 | ||||
Authorized Shares Available for Future Award Grants | ||||
Beginning balance (in shares) | 996,828 | 1,900,000 | ||
Additional shares authorized (in shares) | 1,500,000 | 0 | 1,500,000 | |
Number of awards granted (in shares) | (157,527) | (3,029,498) | ||
Number of awards forfeited or expired (in shares) | 37,394 | 506,193 | ||
Ending balance (in shares) | 876,695 | 876,695 | 876,695 | |
Employee Stock Award Plan-2008 | Options Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of option awards exercised (in shares) | 198,726 | 1,284,621 | ||
Employee Stock Award Plan-2008 | Unrestricted Stock Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of awards granted (in shares) | 0 | (8,470) | ||
Employee Stock Award Plan-2008 | Restricted Stock Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of restricted stock awards vested (in shares) | 19,658 | 57,826 | ||
Director Plan - 2005 | ||||
Authorized Shares Available for Future Award Grants | ||||
Beginning balance (in shares) | 61,813 | 300,000 | ||
Number of awards granted (in shares) | (12,650) | (274,840) | ||
Number of awards forfeited or expired (in shares) | 0 | 24,003 | ||
Ending balance (in shares) | 49,163 | 49,163 | 49,163 | |
Director Plan - 2005 | Options Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of option awards exercised (in shares) | 15,599 | 104,880 | ||
Number of restricted stock awards vested (in shares) | 17,269 | 71,541 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Share-based Compensation [Abstract] | |
2,018 | $ 2,636 |
2,019 | 4,026 |
2,020 | 2,348 |
2,021 | 542 |
2,022 | 37 |
Total | $ 9,589 |
Segment Information (Details)
Segment Information (Details) | Sep. 17, 2017segment | Jun. 30, 2018segmentlocation |
Segment Reporting Information [Line Items] | ||
Number of business segments | segment | 2 | 1 |
Property and Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Number of domestic locations | location | 6 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic and Diluted Earnings per Share [Line Items] | ||||
Net income from continuing operations | $ 157 | $ 109 | $ 20,521 | $ 18,693 |
Weighted-average common shares outstanding (in shares) | 24,976,563 | 25,133,035 | 24,946,335 | 25,288,068 |
Weighted-average common shares for EPS calculation (in shares) | 25,611,773 | 25,624,686 | 25,582,708 | 25,752,525 |
Earnings (loss) per common share from continuing operations, basic (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.82 | $ 0.74 |
Earnings (loss) per common share from continuing operations, diluted (in dollars per share) | 0.01 | 0.01 | 0.80 | 0.73 |
Earnings per common share from discontinued operations, basic (in dollars per share) | 0 | 0.11 | (0.08) | 0.17 |
Earnings per common share from discontinued operations, diluted (in dollars per share) | 0 | 0.11 | (0.07) | 0.16 |
Gain on sale of discontinued operations, net of taxes, basic (in dollars per share) | 1.10 | 0 | ||
Gain on sale of discontinued operations, net of taxes, diluted (in dollars per share) | 1.07 | 0 | ||
Earnings (loss) per common share, basic (in dollars per share) | 0.01 | 0.12 | 1.84 | 0.91 |
Earnings (loss) per common share, diluted (in dollars per share) | $ 0.01 | $ 0.12 | $ 1.80 | $ 0.89 |
Awards excluded from diluted earnings per share calculation (in shares) | 2,681 | 0 | 2,681 | 0 |
Restricted Stock Unit Awards | ||||
Basic and Diluted Earnings per Share [Line Items] | ||||
Add dilutive effect of share-based awards outstanding (in shares) | 281,654 | 248,717 | 281,654 | 248,717 |
Stock Options | ||||
Basic and Diluted Earnings per Share [Line Items] | ||||
Add dilutive effect of share-based awards outstanding (in shares) | 353,556 | 242,934 | 354,719 | 215,740 |
Credit Facility (Details)
Credit Facility (Details) | Feb. 02, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 | ||
Debt covenant, maximum debt to total capitalization ratio | 0.35 | ||
Outstanding balance on credit facility | $ 0 | $ 0 | |
Interest expense incurred | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 50,000,000 | ||
Credit agreement term | 4 years | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 20,000,000 | ||
Swing Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 5,000,000 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | $ 973,373 | |||
Cumulative effect of change in accounting principle | $ (191,244) | $ 0 | ||
Change in accumulated other comprehensive income before reclassifications | $ (4,898) | (39,117) | ||
Reclassification adjustments from accumulated other comprehensive income (loss) | 1,467 | 2,749 | ||
Balance, end of period | 964,600 | 964,600 | ||
Net unrealized appreciation on investments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (10,627) | 214,865 | ||
Cumulative effect of change in accounting principle | (191,244) | |||
Change in accumulated other comprehensive income before reclassifications | (4,898) | (39,117) | ||
Reclassification adjustments from accumulated other comprehensive income (loss) | 155 | 126 | ||
Balance, end of period | (15,370) | (15,370) | ||
Liability for underfunded employee benefit costs | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (45,240) | (46,551) | ||
Cumulative effect of change in accounting principle | 0 | |||
Change in accumulated other comprehensive income before reclassifications | 0 | 0 | ||
Reclassification adjustments from accumulated other comprehensive income (loss) | 1,312 | 2,623 | ||
Balance, end of period | (43,928) | (43,928) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (55,867) | 168,314 | ||
Cumulative effect of change in accounting principle | $ (191,244) | |||
Balance, end of period | $ (59,298) | $ (59,298) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of discontinued operations, net of taxes | $ 0 | $ 0 | $ 27,307 | $ 0 | |
United Life | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal group, cash consideration | $ 280,000 | ||||
Disposal group, adjustment to consideration | 21 | ||||
Proceeds from disposal of subsidiary | 279,979 | ||||
Gain on sale of discontinued operations, net of taxes | $ 27,307 | ||||
Transition services agreement duration | 24 months |
Discontinued Operations (Balanc
Discontinued Operations (Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fixed maturities | ||
Total assets held for sale | $ 0 | $ 1,586,134 |
Liabilities | ||
Total liabilities held for sale | 0 | 1,347,135 |
United Life | Discontinued Operations, Disposed of by Sale | ||
Fixed maturities | ||
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017) | 0 | 34 |
Fixed maturities, held-to-maturity securities, fair value | 0 | 34 |
Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017) | 0 | 1,430,025 |
Fixed maturities, available-for-sale securities, amortized cost | 0 | 1,412,291 |
Equity Securities at fair value (cost $0 in 2018 and $5,099 in 2017) | 0 | 23,653 |
Equity securities, amortized cost | 0 | 5,099 |
Mortgage loans | 0 | 3,435 |
Policy loans | 0 | 5,815 |
Other long-term investments | 0 | 16,437 |
Total investments | 0 | 1,479,399 |
Cash and cash equivalents | 0 | 15,851 |
Deferred policy acquisition costs | 0 | 71,151 |
Other assets | 0 | 19,733 |
Total assets held for sale | 0 | 1,586,134 |
Liabilities | ||
Future policy benefits and losses | 0 | 1,320,401 |
Deferred income taxes | 0 | 18,716 |
Accrued expenses and other liabilities | 0 | 8,018 |
Total liabilities held for sale | $ 0 | $ 1,347,135 |
Discontinued Operations (Statem
Discontinued Operations (Statements of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Benefits, Losses and Expenses | ||||
Income from discontinued operations, net of taxes | $ 0 | $ 2,849 | $ (1,912) | $ 4,201 |
Earnings (loss) per common share from discontinued operations: | ||||
Basic (in dollars per share) | $ 0 | $ 0.11 | $ (0.08) | $ 0.17 |
Diluted (in dollars per share) | $ 0 | $ 0.11 | $ (0.07) | $ 0.16 |
United Life | Discontinued Operations, Disposed of by Sale | ||||
Revenues | ||||
Net premiums earned | $ 0 | $ 14,341 | $ 13,003 | $ 31,769 |
Investment income, net of investment expenses | 0 | 12,426 | 12,663 | 24,876 |
Net realized investment gains (losses) | 0 | 1,599 | (1,057) | 3,304 |
Other income | 0 | 126 | 146 | 324 |
Total revenues | 0 | 28,492 | 24,755 | 60,273 |
Benefits, Losses and Expenses | ||||
Losses and loss settlement expenses | 0 | 9,102 | 10,823 | 20,173 |
Increase in liability for future policy benefits | 0 | 5,281 | 5,023 | 13,860 |
Amortization of deferred policy acquisition costs | 0 | 1,695 | 1,895 | 3,368 |
Other underwriting expenses | 0 | 3,377 | 3,864 | 7,008 |
Interest on policyholders’ accounts | 0 | 4,651 | 4,499 | 9,395 |
Total benefits, losses and expenses | 0 | 24,106 | 26,104 | 53,804 |
Income (loss) from discontinued operations before income taxes | 0 | 4,386 | (1,349) | 6,469 |
Federal income tax expense | 0 | 1,537 | 563 | 2,268 |
Income from discontinued operations, net of taxes | $ 0 | $ 2,849 | $ (1,912) | $ 4,201 |
Earnings (loss) per common share from discontinued operations: | ||||
Basic (in dollars per share) | $ 0 | $ 0.11 | $ (0.08) | $ 0.17 |
Diluted (in dollars per share) | $ 0 | $ 0.11 | $ (0.07) | $ 0.16 |