Document and entity information
Document and entity information Document - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | FBL FINANCIAL GROUP INC | |
Entity Central Index Key | 1,012,771 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 563,127,749 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,864,085 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,413 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments: | ||
Fixed maturities - available for sale, at fair value (amortized cost: 2016 - $6,559,492; 2015 - $6,379,919) | $ 7,217,595 | $ 6,637,776 |
Equity securities - available for sale, at fair value (cost: 2016 - $129,321; 2015 - $116,336) | 136,977 | 121,667 |
Mortgage loans | 781,517 | 744,303 |
Real estate | 1,955 | 1,955 |
Policy loans | 188,536 | 185,784 |
Short-term investments | 8,960 | 28,251 |
Other investments | 8,342 | 3,017 |
Total investments | 8,343,882 | 7,722,753 |
Cash and cash equivalents | 65,386 | 29,490 |
Securities and indebtedness of related parties | 135,084 | 134,570 |
Accrued investment income | 84,672 | 78,274 |
Amounts receivable from affiliates | 5,272 | 2,834 |
Reinsurance recoverable | 107,044 | 103,898 |
Deferred acquisition costs | 215,230 | 335,783 |
Value of insurance in force acquired | 22,300 | 20,913 |
Current income taxes recoverable | 0 | 2,421 |
Other assets | 83,943 | 75,811 |
Assets held in separate accounts | 605,729 | 625,257 |
Total assets | 9,668,542 | 9,132,004 |
Future policy benefits: | ||
Interest sensitive products | 5,008,877 | 4,764,159 |
Traditional life insurance and accident and health products | 1,683,210 | 1,637,322 |
Other policy claims and benefits | 33,774 | 44,157 |
Supplementary contracts without life contingencies | 330,996 | 339,929 |
Advance premiums and other deposits | 260,814 | 254,276 |
Amounts payable to affiliates | 771 | 575 |
Short-term debt payable to non-affiliates | 0 | 15,000 |
Long-term debt payable to non-affiliates | 97,000 | 97,000 |
Current income taxes | 11,259 | 0 |
Deferred income taxes | 231,148 | 135,063 |
Other liabilities | 90,624 | 84,792 |
Liabilities related to separate accounts | 605,729 | 625,257 |
Total liabilities | 8,354,202 | 7,997,530 |
FBL Financial Group, Inc. stockholders' equity: | ||
Preferred stock, without par value, at liquidation value - authorized 10,000,000 shares, issued and outstanding 5,000,000 Series B shares | 3,000 | 3,000 |
Accumulated other comprehensive income | 292,828 | 114,532 |
Retained earnings | 866,285 | 867,574 |
Total FBL Financial Group, Inc. stockholders' equity | 1,314,287 | 1,134,426 |
Noncontrolling interest | 53 | 48 |
Total stockholders' equity | 1,314,340 | 1,134,474 |
Total liabilities and stockholders' equity | 9,668,542 | 9,132,004 |
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 24,863,246 shares in 2016 and 24,796,763 shares in 2015 | ||
FBL Financial Group, Inc. stockholders' equity: | ||
Common stock, without par value | 152,102 | 149,248 |
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2016 and 2015 | ||
FBL Financial Group, Inc. stockholders' equity: | ||
Common stock, without par value | $ 72 | $ 72 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parenthetical disclosure - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 6,559,492 | $ 6,379,919 |
Available-for-sale Equity Securities, Amortized Cost Basis | $ 129,321 | $ 116,336 |
Common Stock, Shares, Outstanding | 24,874,659 | 24,808,176 |
Preferred Stock | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 5,000,000 | 5,000,000 |
Common Class A | ||
Common Stock, Shares Authorized | 88,500,000 | 88,500,000 |
Common Stock, Shares, Issued | 24,863,246 | 24,796,763 |
Common Stock, Shares, Outstanding | 24,863,246 | 24,796,763 |
Common Class B | ||
Common Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Common Stock, Shares, Issued | 11,413 | 11,413 |
Common Stock, Shares, Outstanding | 11,413 | 11,413 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Interest sensitive product charges | $ 25,851 | $ 29,856 | $ 82,989 | $ 86,250 |
Traditional life insurance premiums | 47,682 | 46,719 | 147,425 | 142,758 |
Net investment income | 103,514 | 95,882 | 302,621 | 292,144 |
Net realized capital gains on sales of investments | 646 | (93) | (33) | 7,509 |
Total other-than-temporary impairment losses | (25) | (559) | (3,769) | (719) |
Non-credit portion in other comprehensive income | 0 | 146 | 1,522 | 146 |
Net impairment loss recognized in earnings | (25) | (413) | (2,247) | (573) |
Other income | 3,616 | 3,543 | 11,480 | 12,097 |
Total revenues | 181,284 | 175,494 | 542,235 | 540,185 |
Benefits and expenses: | ||||
Interest sensitive product benefits | 65,882 | 53,940 | 178,860 | 163,121 |
Traditional life insurance benefits | 42,121 | 41,604 | 130,059 | 131,967 |
Policyholder dividends | 2,459 | 2,885 | 8,014 | 8,802 |
Underwriting, acquisition and insurance expenses | 25,785 | 36,176 | 102,437 | 107,535 |
Interest expense | 1,213 | 1,213 | 3,638 | 3,637 |
Other expenses | 3,854 | 4,277 | 12,647 | 13,425 |
Total benefits and expenses | 141,314 | 140,095 | 435,655 | 428,487 |
Income before equity method investments, income taxes and noncontrolling interest | 39,970 | 35,399 | 106,580 | 111,698 |
Income taxes | (13,091) | (11,520) | (34,637) | (36,057) |
Equity income, net of related income taxes | 3,128 | 2,761 | 8,393 | 6,932 |
Net income | 30,007 | 26,640 | 80,336 | 82,573 |
Net loss (gain) attributable to noncontrolling interest | 10 | 19 | 7 | 49 |
Net income attributable to FBL Financial Group, Inc. | $ 30,017 | $ 26,659 | $ 80,343 | $ 82,622 |
Earnings per common share | $ 1.20 | $ 1.07 | $ 3.21 | $ 3.31 |
Earnings per common share - assuming dilution | 1.20 | 1.06 | 3.21 | 3.30 |
Cash dividends per common share | 0.42 | 0.40 | 3.26 | 3.20 |
Regular quarterly cash dividend [Member] | ||||
Benefits and expenses: | ||||
Cash dividends per common share | 0.42 | 0.40 | 1.26 | 1.20 |
Special cash dividend [Member] | ||||
Benefits and expenses: | ||||
Cash dividends per common share | $ 0 | $ 0 | $ 2 | $ 2 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Net income | $ 30,007 | $ 26,640 | $ 80,336 | $ 82,573 | |||
Change in net unrealized investment gains/losses | 16,557 | [1] | (2,802) | [1] | 178,815 | (89,488) | |
Non-credit impairment losses | 0 | [1] | (85) | [1] | (952) | (85) | |
Change in underfunded status of other postretirement benefit plans | 149 | [1] | 246 | [1] | 433 | 723 | |
Total other comprehensive income, net of tax | [1] | 16,706 | (2,641) | 178,296 | (88,850) | ||
Comprehensive income | 46,713 | 23,999 | 258,632 | (6,277) | |||
Comprehensive loss attributable to noncontrolling interest | 10 | 19 | 7 | 49 | |||
Comprehensive income attributable to FBL Financial Group, Inc. | $ 46,723 | $ 24,018 | $ 258,639 | $ (6,228) | |||
[1] | Other comprehensive income (loss) is recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest | |
Balance at Dec. 31, 2014 | $ 1,252,882 | $ 3,000 | $ 144,697 | $ 258,410 | $ 846,737 | $ 38 | |
Net income | 82,573 | 82,622 | (49) | ||||
Other comprehensive income | (88,850) | [1] | (88,850) | ||||
Issurance of common stock under compensation plans | 3,790 | 3,790 | |||||
Purchase of common stock | (3,742) | (399) | (3,343) | ||||
Dividends on preferred stock | (112) | (112) | |||||
Dividends on common stock | (79,274) | (79,274) | |||||
Receipts related to noncontrolling interest | 42 | 42 | |||||
Balance at Sep. 30, 2015 | 1,167,309 | 3,000 | 148,088 | 169,560 | 846,630 | 31 | |
Balance at Dec. 31, 2015 | 1,134,474 | 3,000 | 149,320 | 114,532 | 867,574 | 48 | |
Net income | 80,336 | 80,343 | (7) | ||||
Other comprehensive income | 178,296 | [1] | 178,296 | ||||
Issurance of common stock under compensation plans | 2,917 | 2,917 | |||||
Purchase of common stock | (586) | (63) | (523) | ||||
Dividends on preferred stock | (112) | (112) | |||||
Dividends on common stock | (80,997) | (80,997) | |||||
Receipts related to noncontrolling interest | 12 | 12 | |||||
Balance at Sep. 30, 2016 | $ 1,314,340 | $ 3,000 | $ 152,174 | $ 292,828 | $ 866,285 | $ 53 | |
[1] | Other comprehensive income (loss) is recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net income | $ 80,336 | $ 82,573 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Interest credited to account balances | 114,046 | 113,783 |
Charges for mortality, surrenders and administration | (83,311) | (81,011) |
Net realized losses on investments | 2,280 | (6,936) |
Change in fair value of derivatives | 1,846 | 292 |
Increase in liabilities for life insurance and other future policy benefits | 69,127 | 39,037 |
Deferral of policy acquisition costs | (31,279) | (30,682) |
Amortization of deferred acquisition costs and value of insurance in force | 21,869 | 28,617 |
Change in reinsurance recoverable | (3,146) | (1,598) |
Provision for deferred income taxes | 74 | (4,818) |
Other | (694) | 4,126 |
Net cash provided by (used in) operating activities | 171,148 | 143,383 |
Sales, maturities or repayments: | ||
Fixed maturities - available for sale | 445,158 | 471,774 |
Equity securities - available for sale | 4,885 | 13,620 |
Mortgage loans | 61,959 | 32,841 |
Derivative instruments | 1,309 | 3,078 |
Policy loans | 26,642 | 26,615 |
Securities and indebtedness of related parties | 8,194 | 18,091 |
Acquisitions: | ||
Fixed maturity securities - available for sale | (610,152) | (680,727) |
Equity securities - available for sale | (9,259) | (23,022) |
Mortgage loans | (106,455) | (97,510) |
Derivative instruments | (4,943) | (2,675) |
Policy loans | (29,394) | (29,466) |
Securities and indebtedness of related parties | (12,826) | (22,930) |
Short-term investments, net change | 19,291 | 31,271 |
Purchases and disposals of property and equipment, net | (8,857) | (8,330) |
Net cash used in investing activities | (214,448) | (267,370) |
Financing activities | ||
Contract holder account deposits | 431,264 | 476,664 |
Contract holder account withdrawals | (257,907) | (316,925) |
Repayments of debt | (15,000) | 0 |
Receipts related to noncontrolling interests, net | 12 | 42 |
Excess tax deductions on stock-based compensation | 576 | 1,088 |
Proceeds from (Repurchase of) Equity | 1,360 | (1,491) |
Dividends paid | (81,109) | (79,386) |
Net cash provided by (used in) financing activities | 79,196 | 79,992 |
Decrease in cash and cash equivalents | 35,896 | (43,995) |
Cash and cash equivalents, beginning of period | 29,490 | 76,632 |
Cash and cash equivalents, end of period | 65,386 | 32,637 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for interest | 3,641 | 3,638 |
Cash paid during the period for income taxes | $ 7,701 | $ 16,501 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements of FBL Financial Group, Inc. (we or the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Our financial statements include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of our financial position and results of operations. Operating results for the quarter ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . We encourage you to refer to the notes to our consolidated financial statements included in Item 8 of our 2015 Form 10-K for a complete description of our material accounting policies. Also included in the Form 10-K is a description of areas of judgments and estimates and other information necessary to understand our financial position and results of operations. Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (FASB) issued guidance that amends existing consolidation guidance. The decision to consolidate an entity that a company has an ownership stake in is based on one of two consolidation models: the voting interest entity model and the variable interest entity model. The new guidance revises certain criteria used to determine which consolidation model to use, as well as the criteria considered in each model to determine whether consolidation is required. We adopted the new guidance on January 1, 2016. Adoption of the guidance had no impact on our financial statements as it did not alter any of our prior consolidation decisions. Adoption did result in certain entities that were previously evaluated under the voting interest entity model to be evaluated under the variable interest entity model. See Note 2 for details regarding our variable interest entities. In March 2016, the FASB issued guidance that will impact the accounting for share-based compensation. The guidance will impact several areas including the accounting for excess tax benefits and deficiencies, classification of excess tax benefits within the consolidated statement of cash flows, and the accounting for forfeitures. The guidance becomes effective for fiscal years beginning after December 15, 2016. Certain requirements must be adopted prospectively, while others are required to be adopted on a modified prospective basis, or retroactively. We expect the impact of this new guidance on our consolidated financial statements to be immaterial given our limited use of share-based compensation impacted by the new guidance. In January 2016, the FASB issued guidance that amends certain aspects of the recognition and measurement of financial instruments. The new guidance primarily affects the accounting for equity investments, the presentation and disclosure requirements for financial instruments and the methodology for assessing the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. The guidance becomes effective for fiscal years beginning after December 15, 2017. We are currently evaluating the impact of this guidance on our consolidated financial statements. We currently anticipate that the primary impact will be in the recognition of gains or losses from changes in our equity security investments through the statement of operations, rather than as unrealized gains or losses reflected in other comprehensive income. Note 2 provides further information as to our current level of unrealized gains or losses on these securities. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers, which supersedes most current revenue recognition guidance, including industry-specific guidance. Although insurance contracts are specifically excluded from the scope of this guidance, almost all entities will be affected to some extent by the significant increase in required disclosures. The new guidance is based on the principle that an entity should recognize revenue to reflect the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard, which becomes effective for fiscal years beginning after December 15, 2017; early adoption is not permitted. We currently do not expect that the adoption of this new guidance will have a material impact on our consolidated financial statements as our non-insurance contract revenues, primarily net commissions on products we broker, are insignificant. In February 2016, the FASB issued a new lease accounting standard, which, for most lessees, will result in a gross-up of the balance sheet. Under the new standard, lessees will recognize the leased assets on the balance sheet and will recognize a corresponding liability for the present value of lease payments over the lease term. The new standard requires the application of judgment and estimates. Also, there are accounting policy elections that may be taken both at transition and for the accounting post-transition, including whether to adopt a short-term lease recognition exemption. The guidance becomes effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard will be applied as of the beginning of the earliest comparative period presented in the financial statements (date of initial application). We are currently evaluating the impact of this guidance on our consolidated financial statements. In June 2016, the FASB issued guidance amending the accounting for the credit impairment of financial instruments. Under the new guidance, impairment losses are required to be estimated using an expected loss model under which a valuation allowance is established and adjusted over time. The valuation allowance will be based on the probability of loss over the life of the instrument, considering historical, current and forecasted information. The new guidance differs significantly from the incurred loss model used today, and will result in the earlier recognition of impairment losses. The new guidance will also increase the volatility of earnings to the extent actual results differ from the assumptions used in the establishment of the valuation allowance. The financial instruments for which we will be required to use the new model include but are not limited to, mortgage loans, lease receivables and reinsurance recoverables. Our available-for-sale fixed maturities will continue to apply the incurred loss model, however, rather than impairment losses resulting in a permanent reduction of carrying value as they do today, such losses will be in the form of a valuation allowance, which can be increased in the case of future credit losses or decreased should conditions improve. The guidance becomes effective for fiscal years beginning after December 15, 2019, with early adoption permitted on January 1, 2019. We are currently evaluating the impact of this new guidance on our consolidated financial statements, but expect that it will be material. |
Investment Operations
Investment Operations | 9 Months Ended |
Sep. 30, 2016 | |
Investment Operations [Abstract] | |
Investment Operations | Investment Operations Fixed Maturity and Equity Securities Available-For-Sale Fixed Maturity and Equity Securities by Investment Category September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-credit losses on other-than-temporary impairments (1) (Dollars in thousands) Fixed maturities: Corporate (2) $ 3,489,801 $ 372,926 $ (28,920 ) $ 3,833,807 $ 285 Residential mortgage-backed 400,918 38,737 (2,428 ) 437,227 (876 ) Commercial mortgage-backed 545,186 73,194 (240 ) 618,140 — Other asset-backed 725,289 13,822 (4,460 ) 734,651 4,044 United States Government and agencies 38,632 4,243 — 42,875 — State, municipal and other governments 1,359,666 191,677 (448 ) 1,550,895 — Total fixed maturities $ 6,559,492 $ 694,599 $ (36,496 ) $ 7,217,595 $ 3,453 Equity securities: Non-redeemable preferred stocks $ 100,041 $ 8,644 $ (1,100 ) $ 107,585 Common stocks 29,280 112 — 29,392 Total equity securities $ 129,321 $ 8,756 $ (1,100 ) $ 136,977 Available-For-Sale Fixed Maturity and Equity Securities by Investment Category December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-credit losses on other-than-temporary impairments (1) (Dollars in thousands) Fixed maturities: Corporate (2) $ 3,464,402 $ 192,149 $ (137,844 ) $ 3,518,707 $ 351 Residential mortgage-backed 436,969 33,880 (5,343 ) 465,506 (3,584 ) Commercial mortgage-backed 514,195 42,284 (2,487 ) 553,992 — Other asset-backed 578,692 11,554 (7,124 ) 583,122 3,058 United States Government and agencies 41,050 3,129 (81 ) 44,098 — State, municipal and other governments 1,344,611 129,923 (2,183 ) 1,472,351 — Total fixed maturities $ 6,379,919 $ 412,919 $ (155,062 ) $ 6,637,776 $ (175 ) Equity securities: Non-redeemable preferred stocks $ 87,029 $ 6,095 $ (1,173 ) $ 91,951 Common stocks 29,307 450 (41 ) 29,716 Total equity securities $ 116,336 $ 6,545 $ (1,214 ) $ 121,667 (1) Non-credit losses, subsequent to the initial impairment measurement date, on other-than-temporary impairment (OTTI) losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for corporate and other asset-backed securities were in an unrealized gain position at September 30, 2016 and December 31, 2015 due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities. (2) Corporate securities include hybrid preferred securities with a carrying value of $26.9 million at September 30, 2016 and $43.5 million at December 31, 2015 . Corporate securities also include redeemable preferred stock with a carrying value of $25.9 million at September 30, 2016 and $24.8 million at December 31, 2015 . Available-For-Sale Fixed Maturities by Maturity Date September 30, 2016 Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 75,477 $ 77,053 Due after one year through five years 749,459 817,473 Due after five years through ten years 767,278 822,740 Due after ten years 3,295,885 3,710,311 4,888,099 5,427,577 Mortgage-backed and other asset-backed 1,671,393 1,790,018 Total fixed maturities $ 6,559,492 $ 7,217,595 Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Fixed maturities not due at a single maturity date have been included in the above table in the year of final contractual maturity. Net Unrealized Gains (Losses) on Investments in Accumulated Other Comprehensive Income September 30, December 31, (Dollars in thousands) Net unrealized appreciation on: Fixed maturities - available for sale $ 658,103 $ 257,857 Equity securities - available for sale 7,655 5,331 665,758 263,188 Adjustments for assumed changes in amortization pattern of: Deferred acquisition costs (207,140 ) (73,735 ) Value of insurance in force acquired 145 (3,087 ) Unearned revenue reserve 11,737 3,352 Adjustments for assumed changes in policyholder liabilities (11,217 ) (4,090 ) Provision for deferred income taxes (160,747 ) (64,955 ) Net unrealized investment gains $ 298,536 $ 120,673 Net unrealized investment gains and losses are recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. Subsequent changes in the fair value of securities for which a previous non-credit OTTI loss was recognized in accumulated other comprehensive income, are reported along with changes in fair value for which no OTTI losses were previously recognized. Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time September 30, 2016 Less than one year One year or more Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Percent of Total (Dollars in thousands) Fixed maturities: Corporate $ 148,699 $ (5,643 ) $ 218,384 $ (23,277 ) $ 367,083 $ (28,920 ) 79.2 % Residential mortgage-backed 27,082 (603 ) 24,647 (1,825 ) 51,729 (2,428 ) 6.7 Commercial mortgage-backed 6,512 (53 ) 6,977 (187 ) 13,489 (240 ) 0.7 Other asset-backed 121,800 (566 ) 91,575 (3,894 ) 213,375 (4,460 ) 12.2 State, municipal and other governments 14,658 (448 ) — — 14,658 (448 ) 1.2 Total fixed maturities $ 318,751 $ (7,313 ) $ 341,583 $ (29,183 ) $ 660,334 $ (36,496 ) 100.0 % Equity securities: Non-redeemable preferred stocks $ — $ — $ 13,463 $ (1,100 ) $ 13,463 $ (1,100 ) Total equity securities $ — $ — $ 13,463 $ (1,100 ) $ 13,463 $ (1,100 ) Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time December 31, 2015 Less than one year One year or more Total Description of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Percent of Total (Dollars in thousands) Fixed maturities: Corporate $ 1,115,324 $ (96,062 ) $ 115,730 $ (41,782 ) $ 1,231,054 $ (137,844 ) 88.9 % Residential mortgage-backed 21,646 (725 ) 26,537 (4,618 ) 48,183 (5,343 ) 3.4 Commercial mortgage-backed 48,424 (1,947 ) 7,657 (540 ) 56,081 (2,487 ) 1.6 Other asset-backed 285,395 (3,323 ) 65,298 (3,801 ) 350,693 (7,124 ) 4.6 United States Government and agencies 4,807 (81 ) — — 4,807 (81 ) 0.1 State, municipal and other governments 77,980 (2,183 ) — — 77,980 (2,183 ) 1.4 Total fixed maturities $ 1,553,576 $ (104,321 ) $ 215,222 $ (50,741 ) $ 1,768,798 $ (155,062 ) 100.0 % Equity securities: Non-redeemable preferred stocks $ 21,280 $ (573 ) $ 4,400 $ (600 ) $ 25,680 $ (1,173 ) Common stocks 1,428 (41 ) — — 1,428 (41 ) Total equity securities $ 22,708 $ (614 ) $ 4,400 $ (600 ) $ 27,108 $ (1,214 ) Fixed maturities in the above tables include 216 securities from 177 issuers at September 30, 2016 and 542 securities from 435 issuers at December 31, 2015 . Unrealized losses decreased during the nine-month period of 2016 due primarily to a decrease in treasury rates as well as a decrease in credit spreads, particularly in the energy sector. We do not consider securities to be OTTI when the market decline is attributable to factors such as interest rate movements, market volatility, liquidity, spread widening and credit quality when recovery of all amounts due under the contractual terms of the security is anticipated. Based on our intent not to sell or our belief that we will not be required to sell these securities before recovery of their amortized cost basis, we do not consider these investments to be OTTI at September 30, 2016 . We will monitor the investment portfolio for future changes in issuer facts and circumstances that could result in future impairments beyond those currently identified. Excluding mortgage- and asset-backed securities, no securities from the same issuer had an aggregate unrealized loss in excess of $2.8 million at September 30, 2016 , with the largest unrealized loss from an electricity provider. With respect to mortgage- and asset-backed securities not backed by the United States Government, our largest aggregate unrealized loss from the same issuer at September 30, 2016 was $1.1 million , consisting of two different securities that are backed by different pools of Alt-A residential mortgage loans. Both securities are rated non-investment grade and the largest unrealized loss totaled $0.7 million . As described more fully in Note 1 to our consolidated financial statements included in Item 8 of our 2015 Form 10-K, we perform a regular evaluation of all investment classes for impairment, including fixed maturity securities and equity securities, in order to evaluate whether such investments are OTTI. Credit Loss Component of Other-Than-Temporary Impairments on Fixed Maturities Nine months ended September 30, 2016 2015 (Dollars in thousands) Balance at beginning of period $ (11,498 ) $ (16,772 ) Increases to previously impaired investments (2,172 ) (363 ) Reductions due to investments sold 1,054 757 Balance at end of period $ (12,616 ) $ (16,378 ) The table above sets forth the amount of credit loss impairments on fixed maturities held by the Company as of the dates indicated for which a portion of the OTTI was recognized in other comprehensive income (loss) and corresponding changes in such amounts. Realized Gains (Losses) - Recorded in Income Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Realized gains (losses) on sales of investments Fixed maturities: Gross gains $ — $ 136 $ 7,379 $ 2,884 Gross losses — (229 ) (8,378 ) (1,832 ) Equity securities 529 — 529 — Securities and indebtedness of related parties 117 — 437 6,457 646 (93 ) (33 ) 7,509 Impairment losses recognized in earnings: Credit-related portion of fixed maturity losses (1) — (363 ) (2,172 ) (363 ) Other credit-related (25 ) (50 ) (75 ) (210 ) Net realized losses on investments recorded in income $ 621 $ (506 ) $ (2,280 ) $ 6,936 (1) Amount represents the credit-related losses recognized for fixed maturities that were impaired to the present value of estimated future cash flows through income but not written down to fair value. As discussed above, the non-credit portion of the losses have been recognized in other comprehensive income (loss). Proceeds from sales of fixed maturities totaled $104.7 million during the nine months ended September 30, 2016 and $88.3 million during the nine months ended September 30, 2015 . Realized gains and losses on sales of investments are determined on the basis of specific identification. Mortgage Loans Our mortgage loan portfolio consists of commercial mortgage loans that we have originated. Our lending policies require that the loans be collateralized by the value of the related property, establish limits on the amount that can be loaned to one borrower and require diversification by geographic location and collateral type. We originate loans with an initial loan-to-value ratio that provides sufficient collateral to absorb losses should we be required to foreclose and take possession of the collateral. In order to identify impairment losses, management maintains and regularly reviews a watch list of mortgage loans that have heightened risk. These loans may include those with borrowers delinquent on contractual payments, borrowers experiencing financial difficulty, increases in rental real estate vacancies and significant declines in collateral value. We evaluate each of our mortgage loans individually and establish an estimated loss, if needed, for each impaired loan identified. An estimated loss is needed for loans for which we do not believe we will collect all amounts due according to the contractual terms of the respective loan agreements. Any loan delinquent on contractual payments is considered non-performing. At September 30, 2016 and December 31, 2015 , there were no non-performing loans over 90 days past due on contractual payments. Mortgage loans are placed on non-accrual status if we have concerns regarding the collectability of future payments. Interest income on non-performing loans is generally recognized on a cash basis. Once mortgage loans are classified as nonaccrual loans, the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured such that the collection of interest is considered likely. At September 30, 2016, we had committed to provide additional funding for mortgage loans totaling $33.4 million . These commitments arose in the normal course of business at terms that are comparable to similar investments. Mortgage Loans by Collateral Type September 30, 2016 December 31, 2015 Collateral Type Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) Office $ 364,698 46.7 % $ 333,400 44.8 % Retail 220,917 28.3 227,039 30.5 Industrial 141,948 18.1 133,085 17.9 Other 53,954 6.9 50,779 6.8 Total $ 781,517 100.0 % $ 744,303 100.0 % Mortgage Loans by Geographic Location within the United States September 30, 2016 December 31, 2015 Region of the United States Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) South Atlantic $ 247,524 31.7 % $ 233,522 31.4 % West North Central 103,101 13.2 102,555 13.8 Pacific 100,304 12.8 100,188 13.4 East North Central 91,914 11.8 86,019 11.5 Mountain 80,873 10.4 78,750 10.6 West South Central 61,266 7.8 66,677 9.0 Other 96,535 12.3 76,592 10.3 Total $ 781,517 100.0 % $ 744,303 100.0 % Mortgage Loans by Loan-to-Value Ratio September 30, 2016 December 31, 2015 Loan-to-Value Ratio Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 0% - 50% $ 269,366 34.5 % $ 264,605 35.6 % 51% - 60% 182,855 23.4 169,045 22.7 61% - 70% 266,845 34.1 234,544 31.5 71% - 80% 45,117 5.8 67,072 9.0 81% - 90% 17,334 2.2 9,037 1.2 Total $ 781,517 100.0 % $ 744,303 100.0 % The loan-to-value ratio is determined using the most recent appraised value. Appraisals are updated periodically when there is indication of a possible significant collateral decline or there are loan modifications or refinance requests. Mortgage Loans by Year of Origination September 30, 2016 December 31, 2015 Year of Origination Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 2016 $ 105,923 13.6 % $ — — % 2015 151,727 19.4 154,582 20.9 2014 81,477 10.4 83,546 11.2 2013 70,554 9.0 79,879 10.7 2012 63,806 8.2 65,817 8.8 2011 and prior 308,030 39.4 360,479 48.4 Total $ 781,517 100.0 % $ 744,303 100.0 % Impaired Mortgage Loans September 30, 2016 December 31, 2015 (Dollars in thousands) Unpaid principal balance $ 21,542 $ 21,766 Less: Related allowance (766 ) (851 ) Discount — (87 ) Carrying value of impaired mortgage loans $ 20,776 $ 20,828 Allowance on Mortgage Loans Nine months ended September 30, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 851 $ 857 Charge offs (85 ) (6 ) Balance at end of period $ 766 $ 851 Mortgage Loan Modifications Our commercial mortgage loan portfolio includes loans that have been modified. We assess loan modifications on a loan-by-loan basis to evaluate whether a troubled debt restructuring has occurred. Generally, the types of concessions include: reduction of the contractual interest rate to a below-market rate, extension of the maturity date and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining if an impairment loss is needed for the restructuring. There were no loan modifications during the nine months ended September 30, 2016 or 2015. Low Income Housing Tax Credit Investments (LIHTC) We invest in non-guaranteed federal LIHTC, which are included in securities and indebtedness of related parties on the balance sheet. The carrying value of these investments totaled $92.2 million at September 30, 2016 and $94.2 million at December 31, 2015. There were no impairment losses recorded on these investments during the third quarter of 2016 or 2015. We use the equity method of accounting for these investments and recorded the following in our consolidated statement of operations. LIHTC Equity Income (Loss), Net of Related Income Taxes Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Equity losses from LIHTC $ (1,811 ) $ (1,554 ) $ (5,858 ) $ (5,396 ) Income tax benefits: Tax benefits from equity losses 634 544 2,050 1,889 Investment tax credits 3,581 3,434 10,583 10,109 Equity income from LIHTC, net of related income tax benefits $ 2,404 $ 2,424 $ 6,775 $ 6,602 At September 30, 2016 , we had committed to provide additional funds for limited partnerships and limited liability companies in which we invest. The amounts of these unfunded commitments totaled $29.8 million , including $4.5 million for LIHTC commitments, which are summarized by year in the following table. LIHTC Commitments by Year September 30, 2016 (Dollars in thousands) 2016 $ 2,372 2017 1,164 2018-2024 968 Total $ 4,504 Variable Interest Entities We evaluate our variable interest entity (VIE) investees to determine whether the level of our direct ownership interest, our rights to manage operations, or our obligation to provide ongoing financial support are such that we are the primary beneficiary of the entity, and would therefore be required to consolidate it for financial reporting purposes. After determining that a VIE exists, we review our involvement in the VIE to determine whether we have both the power to direct activities that most significantly impact the economic performance of the VIE, and the obligation to absorb losses or the rights to receive benefits that could be potentially significant to the VIE. This analysis included a review of the purpose and design of the VIE as well as the role that we played in the formation of the entity and how that role could impact our ability to control the VIE. We also review the activities and decisions considered significant to the economic performance of the VIE and assess what power we have in directing those activities and decisions. Finally, we review the agreements in place to determine if there are any guarantees that would affect our maximum exposure to loss. We have reviewed the circumstances surrounding our investments in our VIEs, which are classified as securities and indebtedness of related parties and consist of non-guaranteed federal LIHTC, limited partnerships or limited liability companies accounted for under the equity method. In addition, we have reviewed the ownership interests in our VIEs and determined that we do not hold direct majority ownership or have other contractual rights (such as kick out rights) that give us effective control over these entities resulting in us having both the power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The maximum loss exposure relative to our VIEs is limited to the carrying value and any unfunded commitments that exist for each particular VIE. Based on this analysis, none of our VIEs were required to be consolidated for any reporting periods presented in this Form 10-Q. In adopting the new guidance referred to in Note 1, additional entities were deemed to be VIEs, and are disclosed below for both periods presented. There were no circumstances that occurred during the reporting period that resulted in any changes in our decision not to consolidate any of our VIEs. We also have not provided additional support or other guarantees that was not previously contractually required (financial or otherwise) to any of the VIEs as of September 30, 2016 or December 31, 2015. VIE Investments by Category September 30, 2016 December 31, 2015 Carrying Value Maximum Exposure to Loss Carrying Value (1) Maximum Exposure to Loss (1) (Dollars in thousands) LIHTC $ 92,238 $ 96,742 $ 94,170 $ 102,626 Investment companies 21,077 40,108 20,004 35,604 Real estate limited partnerships 10,122 14,624 9,554 15,610 Other 236 2,037 637 2,448 Total $ 123,673 $ 153,511 $ 124,365 $ 156,288 (1) Prior year values have been restated for comparability with the amounts as presented under the new accounting guidance discussed in Note 1. In addition, we make passive investments in the normal course of business in structured securities issued by VIEs for which we are not the investment manager. These structured securities include all of the residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities included in our fixed maturities. Our maximum exposure to loss on these securities is limited to our carrying value in the investment. We have determined that we are not the primary beneficiary of these structured securities because we do not have the power to direct the activities that most significantly impact the entities' economic performance. Derivative Instruments We are not significantly involved in hedging activities and have limited exposure to derivatives. We do not apply hedge accounting to any of our derivative positions and they are held at fair value. Our primary exposure relates to purchased call options, which provide an economic hedge to the embedded derivatives in our index annuity and universal life insurance products. We also have embedded derivatives within our modified coinsurance agreements as well as an interest-only fixed maturity investment. Derivatives Instruments by Type September 30, 2016 December 31, 2015 (Dollars in thousands) Assets Freestanding derivatives: Call options (reported in other investments) $ 7,658 $ 2,331 Embedded derivatives: Modified coinsurance (reported in reinsurance recoverable) 4,045 2,636 Interest-only security (reported in fixed maturities) 3,091 4,551 Total assets $ 14,794 $ 9,518 Liabilities Embedded derivatives: Index annuity and universal life products (reported in liability for future policy benefits) $ 15,469 $ 9,374 Modified coinsurance agreements (reported in other liabilities) 368 56 Total liabilities $ 15,837 $ 9,430 Derivative Income (Loss) Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Change in fair value of free standing derivatives: Call options $ 1,897 $ (1,948 ) $ 4,186 $ (2,632 ) Change in fair value of embedded derivatives: Modified coinsurance agreements 270 (423 ) 1,097 (629 ) Interest-only security 14 — (451 ) — Index annuity and universal life products (669 ) 1,575 (3,358 ) 1,792 Call option amortization (1,509 ) (821 ) (3,983 ) (2,177 ) Call option proceeds 1,234 771 1,308 2,724 Total income (loss) from derivatives $ 1,237 $ (846 ) $ (1,201 ) $ (922 ) Derivative income (loss) is reported in net investment income except for the change in fair value of the embedded derivatives on our index annuity and universal life products, which is reported in interest sensitive product benefits. The call options are supported by securities collateral received of $4.9 million at September 30, 2016 , which is held in a separate custodial account. Subject to certain constraints, we are permitted to sell or re-pledge this collateral, but do not have legal rights to the collateral; accordingly, it has not been recorded on our balance sheet. At September 30, 2016 , none of the collateral had been sold or re-pledged. All of our counterparties are rated A- or better by a nationally recognized statistical rating organization. |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2016 | |
Fair Values [Abstract] | |
Fair Value | Fair Values The carrying and estimated fair values of our financial instruments are as follows: Fair Values and Carrying Values September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value (Dollars in thousands) Assets Fixed maturities - available for sale $ 7,217,595 $ 7,217,595 $ 6,637,776 $ 6,637,776 Equity securities - available for sale 136,977 136,977 121,667 121,667 Mortgage loans 781,517 832,253 744,303 780,624 Policy loans 188,536 245,466 185,784 230,153 Other investments 8,257 9,615 2,331 2,331 Cash, cash equivalents and short-term investments 74,346 74,346 57,741 57,741 Reinsurance recoverable 4,045 4,045 2,636 2,636 Assets held in separate accounts 605,729 605,729 625,257 625,257 Liabilities Future policy benefits $ 3,955,609 $ 3,981,706 $ 3,750,186 $ 3,618,145 Supplementary contracts without life contingencies 330,996 342,055 339,929 339,717 Advance premiums and other deposits 252,661 252,661 245,269 245,269 Short-term debt — — 15,000 15,000 Long-term debt 97,000 70,616 97,000 68,133 Other liabilities 368 368 56 56 Liabilities related to separate accounts 605,729 602,134 625,257 620,676 Fair value is based on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As not all financial instruments are actively traded, various valuation methods may be used to estimate fair value. These methods rely on observable market data and where observable market data is not available, the best information available. Significant judgment may be required to interpret the data and select the assumptions used in the valuation estimates, particularly when observable market data is not available. In the discussion that follows, we have ranked our financial instruments by the level of judgment used in the determination of the fair values presented above. The levels are defined as follows: • Level 1 - Fair values are based on unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Fair values are based on inputs, other than quoted prices from active markets, that are observable for the asset or liability, either directly or indirectly. • Level 3 - Fair values are based on significant unobservable inputs for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. From time to time there may be movements between levels as inputs become more or less observable, which may depend on several factors including the activity of the market for the specific security, the activity of the market for similar securities, the level of risk spreads and the source from which we obtain the information. Transfers into or out of any level are measured as of the beginning of the period. The following methods and assumptions were used in estimating the fair value of our financial instruments: Fixed maturities: Level 1 fixed maturities consist of U.S. Treasury issues that are actively traded, allowing us to use current market prices as an estimate of their fair value. Level 2 fixed maturities consist of corporate, mortgage- and asset-backed, United States Government agencies, state and municipal and private placement corporate securities with observable market data, and in some circumstances recent trade activity. When quoted prices of identical assets in active markets are not available, our first priority is to obtain prices from third party pricing vendors. We have regular interaction with these vendors to ensure we understand their pricing methodologies and to confirm they are utilizing observable market information. Their methodologies vary by asset class and include inputs such as estimated cash flows, benchmark yields, reported trades, credit quality, industry events and economic events. Fixed maturities with validated prices from pricing services, which includes the majority of our public fixed maturities in all asset classes, are generally reflected in Level 2. Also included in Level 2 are private placement corporate bonds where quoted market prices are not available, for which an internal model using substantially all observable inputs or a matrix pricing valuation approach is used. In the matrix approach, securities are grouped into pricing categories that vary by sector, rating and average life. Each pricing category is assigned a risk spread based on studies of observable public market data. The expected cash flows of the security are then discounted back at the current Treasury curve plus the appropriate risk spread. Level 3 fixed maturities include corporate, mortgage- and asset-backed, United States Government sponsored agencies, state and municipal and private placement corporate securities for which there is little or no current market data available. We use external pricing sources, or if prices are not available we will estimate fair value internally. Fair values of private corporate investments in Level 3 are determined by reference to the public market, private transactions or valuations for comparable companies or assets in the relevant asset class when such amounts are available. For other securities where an exit price based on relevant observable inputs is not obtained, the fair value is determined using a matrix calculation. Fair values estimated through the use of matrix pricing methods rely on an estimate of credit spreads to a risk-free U.S. Treasury yield. Selecting the credit spread requires judgment based on an understanding of the security and may include a market liquidity premium. Our selection of comparable companies as well as the level of spread requires significant judgment. Increases in spreads used in our matrix models, or those used to value comparable companies, will result in a decrease in discounted cash flows used, and accordingly in the estimated fair value of the security. We obtain fixed maturity fair values from a variety of external independent pricing services, including brokers, with access to observable data including recent trade information, if available. In certain circumstances in which an external price is not available for a Level 3 security, we will internally estimate its fair value. Our process for evaluation and selection of the fair values includes: • We follow a “pricing waterfall” policy, which establishes the pricing source preference for a particular security or security type. The order of preference is based on our evaluation of the valuation methods used, the source's knowledge of the instrument and the reliability of the prices we have received from the source in the past. Our valuation policy dictates that fair values are initially sought from third party pricing services. If our review of the prices received from our preferred source indicates an inaccurate price, we will use an alternative source within the waterfall and document the decision. In the event that fair values are not available from one of our external pricing services or upon review of the fair values provided it is determined that they may not be reflective of market conditions, those securities are submitted to brokers familiar with the security to obtain non-binding price quotes. Broker quotes tend to be used in limited circumstances such as for newly issued, private placement corporate bonds and other instruments that are not widely traded. For those securities for which an externally provided fair value is not available, we use cash flow modeling techniques to estimate fair value. • We evaluate third party pricing source estimation methodologies to assess whether they will provide a fair value that approximates a market exit price. • We perform an overall analysis of portfolio fair value movement against general movements in interest rates and spreads. • We compare period-to-period price trends to detect unexpected price fluctuation based on our knowledge of the market and the particular instrument. As fluctuations are noted, we will perform further research, which may include discussions with the original pricing source or other external sources to ensure we are in agreement with the valuation. • We compare prices between different pricing sources for unusual disparity. • We meet at least quarterly with our Investment Committee, the group that oversees our valuation process, to discuss valuation practices and observations during the pricing process. Equity securities: Level 1 equity securities consist of listed common stocks and mutual funds that are actively traded, allowing us to use current market prices as an estimate of their fair value. Level 2 equity securities consist of common stock issued by the Federal Home Loan Bank of Des Moines (FHLB), with estimated fair value based on the current redemption value of the shares, and non-redeemable preferred stock. Estimated fair value for the non-redeemable preferred stock is obtained from external pricing sources using a matrix pricing approach. Level 3 equity securities consist of non-redeemable preferred stock for which no active market exists, and fair value estimates for these securities is based on the values of comparable securities that are actively traded. Increases in spreads used in our matrix models, or those used to value comparable companies, will result in a decrease in discounted cash flows used, and accordingly in the estimated fair value of the security. In the case where external pricing services are used for certain Level 1 and Level 2 equity securities, our review process is consistent with the process used to determine the fair value of fixed maturities discussed above. Mortgage loans: Mortgage loans are not measured at fair value on a recurring basis. Mortgage loans are a Level 3 measurement as there is no current market for the loans. The fair value of our mortgage loans is estimated internally using a matrix pricing approach. Along with specific loan terms, two key management assumptions are required including the risk rating of the loan (our current rating system is A-highest quality, B-moderate quality, C-low quality, W-watch or F-foreclosure) and estimated spreads for new loans over the U.S. Treasury yield curve. Spreads are updated quarterly and loans are reviewed and rated annually with quarterly adjustments should significant changes occur. Our determination of each loan's risk rating as well as selection of the credit spread requires significant judgment. A higher risk rating, as well as an increase in spreads, would result in a decrease in discounted cash flows used, and accordingly the fair value of the loan. Policy loans: Policy loans are not measured at fair value on a recurring basis. Policy loans are a Level 3 measurement as there is no current market since they are specifically tied to the underlying insurance policy. The loans are relatively risk free as they cannot exceed the cash surrender value of the insurance policy. Fair values are estimated by discounting expected cash flows using a risk-free interest rate based on the U.S. Treasury curve. An increase in the risk-free interest rate would result in a decrease in discounted cash flows used, and accordingly the fair value of the loan. Other investments: Level 2 other investments measured at fair value on a recurring basis include call options with fair values based on counterparty market prices adjusted for a credit component of the counterparty, net of collateral received. Level 3 other investments, which are not measured at fair value on a recurring basis, include a promissory note that is priced internally using a discounted cash flow based on our assessment of the credit risk of the borrower. Cash, cash equivalents and short-term investments: Level 1 cash, cash equivalents and short-term investments are highly liquid instruments for which historical cost approximates fair value. Reinsurance recoverable: Level 2 reinsurance recoverable includes embedded derivatives in our modified coinsurance contracts under which we cede or assume business. Fair values of these embedded derivatives are based on the difference between the fair value and the cost basis of the underlying fixed maturities, which are valued consistent with the discussion of fixed maturities above. Assets held in separate accounts: Level 1 assets held in separate accounts consist of mutual funds that are actively traded, allowing us to use current market prices as an estimate of their fair value. Future policy benefits, supplementary contracts without life contingencies and advance premiums and other deposits : Level 3 policy-related financial instruments of investment-type contracts are those not involving significant mortality or morbidity risks. No active market exists for these contracts and they are not measured at fair value on a recurring basis. Fair values for our insurance contracts, other than investment-type contracts, are not required to be disclosed. Fair values for our investment-type contracts with expected maturities, including deferred annuities, funding agreements and supplementary contracts, are determined using discounted cash flow valuation techniques based on current interest rates adjusted to reflect our credit risk and an additional provision for adverse deviation. For certain deposit liabilities with no defined maturities and no surrender charges, including pension-related deposit administration funds, advance premiums and other deposits, fair value is the account value or amount payable on demand. Significant judgment is required in selecting the assumptions used to estimate the fair values of these financial instruments. For contracts with known maturities, increases in current rates will result in a decrease in discounted cash flows and a decrease in the estimated fair value of the policy obligation. Certain annuity contracts include embedded derivatives that are measured at fair value on a recurring basis. These embedded derivatives are a Level 3 measurement. The fair value of the embedded derivatives is based on the discounted excess of projected account values (including a risk margin) over projected guaranteed account values. The key unobservable inputs required in the projection of future values that require management judgment include the risk margin as well as the credit risk of our company. Should the risk margin increase or the credit risk decrease, the discounted cash flows and the estimated fair value of the obligation will increase. Short-term debt: Short-term debt is not measured at fair value on a recurring basis and is a Level 3 measurement. Our short-term debt consists of advances with interest set to the debt issuer’s current lending rate during December 2015, repayable in less than one month. Given the recent issuance of this short-term debt, its carrying value approximates fair value. Long-term debt: Long-term debt is not measured at fair value on a recurring basis. Long-term debt is a Level 3 measurement. The fair value of our outstanding debt is estimated using a discounted cash flow method based on the market's assessment or our current incremental borrowing rate for similar types of borrowing arrangements adjusted, as needed, to reflect our credit risk. Our selection of the credit spread requires significant judgment. A decrease in the spread will increase the estimated fair value of the outstanding debt. Other liabilities: Level 2 other liabilities include the embedded derivatives in our modified coinsurance contracts under which we cede business. Fair values for the embedded derivatives are based on the difference between the fair value and the cost basis of the underlying fixed maturities. Liabilities related to separate accounts: Separate account liabilities are not measured at fair value on a recurring basis. Level 3 separate account liabilities' fair value is based on the cash surrender value of the underlying contract, which is the cost we would incur to extinguish the liability. Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels September 30, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,778,875 $ 54,932 $ 3,833,807 Residential mortgage-backed securities — 437,227 — 437,227 Commercial mortgage-backed securities — 521,441 96,699 618,140 Other asset-backed securities — 665,874 68,777 734,651 United States Government and agencies 12,964 20,693 9,218 42,875 State, municipal and other governments — 1,550,895 — 1,550,895 Non-redeemable preferred stocks — 99,873 7,712 107,585 Common stocks 2,971 26,421 — 29,392 Other investments — 7,658 — 7,658 Cash, cash equivalents and short-term investments 74,346 — — 74,346 Reinsurance recoverable — 4,045 — 4,045 Assets held in separate accounts 605,729 — — 605,729 Total assets $ 696,010 $ 7,113,002 $ 237,338 $ 8,046,350 Liabilities Future policy benefits - index annuity embedded derivatives $ — $ — $ 15,469 $ 15,469 Other liabilities — 368 — 368 Total liabilities $ — $ 368 $ 15,469 $ 15,837 Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,469,631 $ 49,076 $ 3,518,707 Residential mortgage-backed securities — 461,777 3,729 465,506 Commercial mortgage-backed securities — 465,812 88,180 553,992 Other asset-backed securities — 527,565 55,557 583,122 United States Government and agencies 14,760 20,612 8,726 44,098 State, municipal and other governments — 1,472,351 — 1,472,351 Non-redeemable preferred stocks — 84,480 7,471 91,951 Common stocks 4,728 24,988 — 29,716 Other investments — 2,331 — 2,331 Cash, cash equivalents and short-term investments 57,741 — — 57,741 Reinsurance recoverable — 2,636 — 2,636 Assets held in separate accounts 625,257 — — 625,257 Total assets $ 702,486 $ 6,532,183 $ 212,739 $ 7,447,408 Liabilities Future policy benefits - index annuity embedded derivatives $ — $ — $ 9,374 $ 9,374 Other liabilities — 56 — 56 Total liabilities $ — $ 56 $ 9,374 $ 9,430 Level 3 Fixed Maturities by Valuation Source - Recurring Basis September 30, 2016 Third-party vendors Priced Total (Dollars in thousands) Corporate securities $ 18,361 $ 36,571 $ 54,932 Commercial mortgage-backed securities 96,699 — 96,699 Other asset-backed securities 48,317 20,460 68,777 United States Government and agencies — 9,218 9,218 Total $ 163,377 $ 66,249 $ 229,626 Percent of total 71.1 % 28.9 % 100.0 % December 31, 2015 Third-party vendors Priced internally Total (Dollars in thousands) Corporate securities $ 17,208 $ 31,868 $ 49,076 Residential mortgage-backed securities — 3,729 3,729 Commercial mortgage-backed securities 88,180 — 88,180 Other asset-backed securities 35,420 20,137 55,557 United States Government and agencies — 8,726 8,726 Total $ 140,808 $ 64,460 $ 205,268 Percent of total 68.6 % 31.4 % 100.0 % Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis September 30, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 42,947 Discounted cash flow Credit spread 0.98% - 11.00% (6.93%) Commercial mortgage-backed 96,699 Discounted cash flow Credit spread 1.10% - 4.15% (2.96%) Other asset-backed securities 11,814 Discounted cash flow Credit spread 1.14% - 5.70% (4.03%) United States Government and agencies 9,218 Discounted cash flow Credit spread 1.65% (1.65%) Non-redeemable preferred stocks 7,712 Discounted cash flow Credit spread 4.50% (4.50%) Total assets $ 168,390 Liabilities Future policy benefits - index annuity embedded derivatives $ 15,469 Discounted cash flow Credit risk Risk margin 0.77% - 2.22% (1.35%) 0.15% - 0.40% (0.25%) December 31, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 33,508 Discounted cash flow Credit spread 1.16% - 17.50% (11.26%) Commercial mortgage-backed 71,100 Discounted cash flow Credit spread 1.10% - 4.15% (3.12%) Other asset-backed securities 13,737 Discounted cash flow Credit spread 1.25% - 7.90% (5.61%) United States Government and agencies 8,727 Discounted cash flow Credit spread 2.59% (2.59%) Non-redeemable preferred stocks 7,471 Discounted cash flow Credit spread 4.55% (4.55%) Total assets $ 134,543 Liabilities Future policy benefits - index annuity embedded derivatives $ 9,374 Discounted cash flow Credit risk 0.80% - 2.25% (1.45%) The tables above exclude certain securities for which the fair value was based on non-binding broker quotes where we could not reasonably obtain the quantitative unobservable inputs. Level 3 Financial Instruments Changes in Fair Value - Recurring Basis September 30, 2016 Realized and unrealized gains (losses), net Balance, December 31, 2015 Purchases Disposals Included in net income Included in other compre-hensive income Transfers into Level 3 (1) Transfers out of Level 3 (1) Amort-ization included in net income Balance, September 30, 2016 (Dollars in thousands) Assets Corporate securities $ 49,076 $ 2,000 $ (9,500 ) $ — $ 243 $ 26,738 $ (13,572 ) $ (53 ) $ 54,932 Residential mortgage-backed securities 3,729 — (3,722 ) — (137 ) — — 130 — Commercial mortgage-backed securities 88,180 18,826 (1,052 ) — 7,093 — (16,418 ) 70 96,699 Other asset-backed securities 55,557 46,010 (5,864 ) — 691 30,098 (57,738 ) 23 68,777 United States Government and agencies 8,726 — — — 486 — — 6 9,218 State, municipal and other governments — — — — 108 2,393 (2,501 ) — — Non-redeemable preferred stocks 7,471 — — — 241 — — — 7,712 Total assets $ 212,739 $ 66,836 $ (20,138 ) $ — $ 8,725 $ 59,229 $ (90,229 ) $ 176 $ 237,338 Liabilities Future policy benefits - index annuity embedded derivatives $ 9,374 $ 4,533 $ (73 ) $ 1,635 $ — $ — $ — $ — $ 15,469 Total liabilities $ 9,374 $ 4,533 $ (73 ) $ 1,635 $ — $ — $ — $ — $ 15,469 Level 3 Financial Instruments Changes in Fair Value - Recurring Basis September 30, 2015 Realized and unrealized gains (losses), net Balance, December 31, 2014 Purchases Disposals Included in net income Included in other compre-hensive income Transfers into Level 3 (1) Transfers out of Level 3 (1) Amort-ization included in net income Balance, September 30, 2015 (Dollars in thousands) Assets Corporate securities $ 64,239 $ 12,993 $ (16,061 ) $ — $ (4,321 ) $ 18,451 $ (25,174 ) $ 583 $ 50,710 Residential mortgage-backed securities — 19,353 — — 273 — (13,667 ) 5 5,964 Commercial mortgage-backed securities 77,891 17,286 (688 ) — (2,088 ) — (2,334 ) 79 90,146 Other asset-backed securities 116,141 46,216 (5,225 ) — (324 ) — (98,759 ) (3 ) 58,046 United States Government and agencies 9,065 — — — (61 ) — — 5 9,009 Non-redeemable preferred stocks 8,054 — — — (270 ) — — — 7,784 Total assets $ 275,390 $ 95,848 $ (21,974 ) $ — $ (6,791 ) $ 18,451 $ (139,934 ) $ 669 $ 221,659 Liabilities Future policy benefits - index annuity embedded derivatives $ 8,681 $ 3,219 $ (713 ) $ (2,746 ) $ — $ — $ — $ — $ 8,441 Total liabilities $ 8,681 $ 3,219 $ (713 ) $ (2,746 ) $ — $ — $ — $ — $ 8,441 (1) Transfers into Level 3 represent assets previously priced using an external pricing service with access to observable inputs no longer available and therefore, were priced using non-binding broker quotes. Transfers out of Level 3 include those assets that we are now able to obtain pricing from a third party pricing vendor that uses observable inputs. The fair values of newly issued securities often require additional estimation until a market is created, which is generally within a few months after issuance. Once a market is created, as was the case for the majority of the security transfers out of the Level 3 category above, Level 2 valuation sources become available. There were no transfers between Level 1 and Level 2 during the periods presented above. Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels September 30, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Mortgage loans $ — $ — $ 832,253 $ 832,253 Policy loans — — 245,466 245,466 Other investments — — 1,957 1,957 Total assets $ — $ — $ 1,079,676 $ 1,079,676 Liabilities Future policy benefits $ — $ — $ 3,966,239 $ 3,966,239 Supplementary contracts without life contingencies — — 342,055 342,055 Advance premiums and other deposits — — 252,661 252,661 Long-term debt — — 70,616 70,616 Liabilities related to separate accounts — — 602,134 602,134 Total liabilities $ — $ — $ 5,233,705 $ 5,233,705 December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Mortgage loans $ — $ — $ 780,624 $ 780,624 Policy loans — — 230,153 230,153 Total assets $ — $ — $ 1,010,777 $ 1,010,777 Liabilities Future policy benefits $ — $ — $ 3,608,771 $ 3,608,771 Supplementary contracts without life contingencies — — 339,717 339,717 Advance premiums and other deposits — — 245,269 245,269 Short-term debt — — 15,000 15,000 Long-term debt — — 68,133 68,133 Liabilities related to separate accounts — — 620,676 620,676 Total liabilities $ — $ — $ 4,897,566 $ 4,897,566 Level 3 Financial Instruments Measured at Fair Value on a Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis, generally mortgage loans or real estate that have been deemed to be impaired during the reporting period. There were no mortgage loans or real estate impaired to fair value during the quarters ended September 30, 2016 or September 30, 2015. |
Defined Benefit Plan
Defined Benefit Plan | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plan [Abstract] | |
Defined Benefit Plan | Defined Benefit Plan We participate with several affiliates and an unaffiliated organization in various defined benefit plans, including a multiemployer plan. Our share of net periodic pension cost for the plans is recorded as expense in our consolidated statements of operations. Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Multiemployer Plan Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Service cost $ 1,448 $ 1,488 $ 4,344 $ 4,464 Interest cost 3,612 3,300 10,836 9,900 Expected return on assets (4,466 ) (4,463 ) (13,398 ) (13,389 ) Amortization of prior service cost 36 36 108 108 Amortization of actuarial loss 2,358 2,598 7,074 7,794 Effect of settlement — 2,944 — 7,434 Net periodic pension cost $ 2,988 $ 5,903 $ 8,964 $ 16,311 FBL Financial Group, Inc. share of net periodic pension costs $ 952 $ 1,913 $ 2,856 $ 5,286 Pension settlement charges are recognized when total cash payments for lump sum distributions exceed the sum of the service and interest cost for the year. Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Other Plans Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Service cost $ 83 $ 109 $ 251 $ 327 Interest cost 242 250 724 750 Amortization of prior service cost — (3 ) — (9 ) Amortization of actuarial loss 229 382 689 1,146 Net periodic pension cost $ 554 $ 738 $ 1,664 $ 2,214 FBL Financial Group, Inc. share of net periodic pension costs $ 315 $ 418 $ 945 $ 1,254 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings In the normal course of business, we may be involved in litigation in which damages are alleged that are substantially in excess of contractual policy benefits or certain other agreements. In recent years, companies in the life insurance and annuity business have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices and similar claims. We are not aware of any claims threatened or pending against FBL Financial Group, Inc. or any of its subsidiaries for which a material loss is reasonably possible. |
Stockholders Equity
Stockholders Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note | Stockholders' Equity Share Repurchases During 2014 and 2016, our Board of Directors approved programs to repurchase our Class A common stock. These repurchase programs authorize us to make repurchases in the open market or through privately negotiated transactions, with the timing and terms of the purchases to be determined by management based on market conditions. In connection with the Class A repurchase programs, we repurchased 10,322 shares for $0.6 million during the nine months ended September 30, 2016 and 66,904 shares for $3.7 million during the nine months ended September 30, 2015 . At September 30, 2016 , $49.5 million remains available for repurchase under the program announced in 2016. Completion of this program is dependent on market conditions and other factors. There is no guarantee as to the exact timing of any repurchases or the number of shares that we will repurchase. The share repurchase program may be modified or terminated at any time without prior notice. Special Dividend In March 2016, the Board of Directors approved a special $2.00 per share cash dividend payable to Class A and Class B common shareholders totaling $49.7 million . In March 2015, the Board of Directors approved a special $2.00 per share cash dividend payable to Class A and Class B common shareholders totaling $49.5 million . Reconciliation of Outstanding Common Stock Class A Class B Total Shares Dollars Shares Dollars Shares Dollars (Dollars in thousands) Outstanding at January 1, 2015 24,703,903 $ 144,625 11,413 $ 72 24,715,316 $ 144,697 Issuance of common stock under compensation plans 129,513 3,790 — — 129,513 3,790 Purchase of common stock (66,904 ) (399 ) — — (66,904 ) (399 ) Outstanding at September 30, 2015 24,766,512 $ 148,016 11,413 $ 72 24,777,925 $ 148,088 Outstanding at January 1, 2016 24,796,763 $ 149,248 11,413 $ 72 24,808,176 $ 149,320 Issuance of common stock under compensation plans 76,805 2,917 — — 76,805 2,917 Purchase of common stock (10,322 ) (63 ) — — (10,322 ) (63 ) Outstanding at September 30, 2016 24,863,246 $ 152,102 11,413 $ 72 24,874,659 $ 152,174 Accumulated Other Comprehensive Income, Net of Tax and Other Offsets Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) Accumulated Non-Credit Impairment Losses Underfunded Status of Postretirement Benefit Plans Total (Dollars in thousands) Balance at January 1, 2015 $ 266,211 $ 1,131 $ (8,932 ) $ 258,410 Other comprehensive loss before reclassifications (88,917 ) 32 — (88,885 ) Reclassification adjustments (603 ) (85 ) 723 35 Balance at September 30, 2015 $ 176,691 $ 1,078 $ (8,209 ) $ 169,560 Balance at January 1, 2016 $ 120,787 $ (114 ) $ (6,141 ) $ 114,532 Other comprehensive income before reclassifications 175,562 3,311 — 178,873 Reclassification adjustments (58 ) (952 ) 433 (577 ) Balance at September 30, 2016 $ 296,291 $ 2,245 $ (5,708 ) $ 292,828 (1) Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 for further information. Accumulated Other Comprehensive Income Reclassification Adjustments Nine months ended September 30, 2016 Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Status of Postretirement Benefit Plans Total (Dollars in thousands) Realized capital losses on sales of investments $ 470 $ — $ — $ 470 Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities (559 ) 58 — (501 ) Other-than-temporary impairment losses — (1,522 ) — (1,522 ) Other expenses: Change in unrecognized postretirement items: Net actuarial loss — — 666 666 Reclassifications before income taxes (89 ) (1,464 ) 666 (887 ) Income taxes 31 512 (233 ) 310 Reclassification adjustments $ (58 ) $ (952 ) $ 433 $ (577 ) Nine months ended September 30, 2015 Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Status of Postretirement Benefit Plans Total (Dollars in thousands) Realized capital gains on sales of investments $ (1,052 ) $ — $ — $ (1,052 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities 125 7 — 132 Other than temporary impairment losses — (146 ) — (146 ) Other expenses: Change in unrecognized postretirement items: Prior service costs — — (9 ) (9 ) Net actuarial loss — — 1,122 1,122 Reclassifications before income taxes (927 ) (139 ) 1,113 47 Income taxes 324 54 (390 ) (12 ) Reclassification adjustments $ (603 ) $ (85 ) $ 723 $ 35 (1) See Note 2 for further information. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Computation of Earnings per Common Share Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands, except per share data) Numerator: Net income attributable to FBL Financial Group, Inc. $ 30,017 $ 26,659 $ 80,343 $ 82,622 Less: Dividends on Series B preferred stock 37 37 112 112 Income available to common stockholders $ 29,980 $ 26,622 $ 80,231 $ 82,510 Denominator: Weighted average shares - basic 24,990,441 24,923,202 24,977,342 24,926,188 Effect of dilutive securities - stock-based compensation 39,075 79,850 46,757 93,275 Weighted average shares - diluted 25,029,516 25,003,052 25,024,099 25,019,463 Earnings per common share $ 1.20 $ 1.07 $ 3.21 $ 3.31 Earnings per common share - assuming dilution: $ 1.20 $ 1.06 $ 3.21 $ 3.30 There were no antidilutive stock options outstanding in either period presented. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Segment Information | Segment Information We analyze operations by reviewing financial information regarding our primary products that are aggregated into the Annuity and Life Insurance product segments. In addition, our Corporate and Other segment includes various support operations, corporate capital and other product lines that are not currently underwritten by the Company. We analyze our segment results based on pre-tax operating income. Accordingly, income taxes are not allocated to the segments. In addition, operating results are reported net of transactions between the segments. Operating income represents net income excluding the impact of realized gains and losses on investments and changes in net unrealized gains and losses on derivatives. We use operating income, in addition to net income, to measure our performance since realized gains and losses on investments and the change in net unrealized gains and losses on derivatives can fluctuate greatly from quarter to quarter. A view of our operating performance without the impact of these items enhances the analysis of our results, although it should not be viewed as a substitute for net income as a measure of financial performance. Operating income is not a measure used in financial statements prepared in accordance with GAAP, but is a common life insurance industry measure of performance. We use operating income for goal setting, determining short-term incentive compensation and evaluating performance on a basis comparable to that used by many in the investment community. Financial Information Concerning our Operating Segments Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Operating revenues: Annuity $ 54,839 $ 53,415 $ 160,972 $ 159,638 Life Insurance 101,030 101,431 309,357 305,897 Corporate and Other 22,659 23,530 69,366 70,978 178,528 178,376 539,695 536,513 Net realized gains (losses) on investments (1) 575 (511 ) (2,293 ) 6,934 Change in net unrealized gains/losses on derivatives (1) 2,181 (2,371 ) 4,833 (3,262 ) Consolidated revenues $ 181,284 $ 175,494 $ 542,235 $ 540,185 Pre-tax operating income: Annuity $ 17,075 $ 19,762 $ 50,571 $ 53,681 Life Insurance 15,245 18,355 43,789 41,784 Corporate and Other 5,219 (2,774 ) 9,680 5,673 37,539 35,343 104,040 101,138 Income taxes on operating income (8,657 ) (8,059 ) (23,164 ) (22,234 ) Net realized gains/losses on investments (1) 402 (307 ) (1,142 ) 4,421 Change in net unrealized gains/losses on derivatives (1) 733 (318 ) 609 (703 ) Consolidated net income attributable to FBL Financial Group, Inc. $ 30,017 $ 26,659 $ 80,343 $ 82,622 (1) Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired and income taxes attributable to these items. Our investment in equity method investees, the related equity income and interest expense are attributable to the Corporate and Other segment. Expenditures for long-lived assets were not significant during the periods presented above. Goodwill at September 30, 2016 and December 31, 2015 was allocated among the segments as follows: Annuity ( $3.9 million ) and Life Insurance ( $6.1 million ). Premiums collected, which is not a measure used in financial statements prepared according to GAAP, includes premiums received on life insurance policies and deposits on annuities and universal life-type products. Premiums collected is a common life insurance industry measure of agent productivity. Net premiums collected totaled $156.4 million for the quarter ended September 30, 2016 and $184.0 million for the same period in 2015 . Net premiums collected totaled $516.5 million for the nine months ended September 30, 2016 and $508.4 million for the same period in 2015 . Under GAAP, premiums on whole life and term life policies are recognized as revenues over the premium-paying period and reported in the Life Insurance segment. The following chart provides a reconciliation of life insurance premiums collected to those reported in the GAAP financial statements. Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Traditional and universal life insurance premiums collected $ 67,270 $ 68,159 $ 209,194 $ 210,461 Premiums collected on interest sensitive products (20,714 ) (21,638 ) (62,923 ) (68,664 ) Traditional life insurance premiums collected 46,556 46,521 146,271 141,797 Change in due premiums and other 1,126 198 1,154 961 Traditional life insurance premiums $ 47,682 $ 46,719 $ 147,425 $ 142,758 There is no comparable GAAP financial measure for premiums collected on annuities and universal life-type products. GAAP revenues for those interest sensitive and variable products consist of various policy charges and fees assessed on those contracts, as summarized in the chart below. Interest Sensitive Product Charges by Segment Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Annuity Surrender charges and other $ 894 $ 542 $ 2,768 $ 1,810 Life Insurance Administration charges $ 3,347 $ 3,558 $ 10,434 $ 10,763 Cost of insurance charges 12,314 11,947 36,181 35,162 Surrender charges 259 254 785 740 Amortization of policy initiation fees (1,710 ) 1,235 (762 ) 2,251 Total $ 14,210 $ 16,994 $ 46,638 $ 48,916 Corporate and Other Administration charges $ 1,313 $ 1,392 $ 4,232 $ 4,426 Cost of insurance charges 7,450 7,500 22,399 22,311 Surrender charges 89 46 162 238 Separate account charges 2,019 2,204 5,990 6,722 Amortization of policy initiation fees (124 ) 1,178 800 1,827 Total $ 10,747 $ 12,320 $ 33,583 $ 35,524 Consolidated interest sensitive product charges $ 25,851 $ 29,856 $ 82,989 $ 86,250 Amortization of policy initiation fees decreased for the quarter and nine-month period ending September, 30, 2016, compared to prior year periods, primarily due to the impact of unlocking assumptions used in the calculation of unearned revenue reserves. |
Investment Operations (Tables)
Investment Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Operations [Abstract] | |
Available-for-sale Securities [Table Text Block] | Available-For-Sale Fixed Maturity and Equity Securities by Investment Category September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-credit losses on other-than-temporary impairments (1) (Dollars in thousands) Fixed maturities: Corporate (2) $ 3,489,801 $ 372,926 $ (28,920 ) $ 3,833,807 $ 285 Residential mortgage-backed 400,918 38,737 (2,428 ) 437,227 (876 ) Commercial mortgage-backed 545,186 73,194 (240 ) 618,140 — Other asset-backed 725,289 13,822 (4,460 ) 734,651 4,044 United States Government and agencies 38,632 4,243 — 42,875 — State, municipal and other governments 1,359,666 191,677 (448 ) 1,550,895 — Total fixed maturities $ 6,559,492 $ 694,599 $ (36,496 ) $ 7,217,595 $ 3,453 Equity securities: Non-redeemable preferred stocks $ 100,041 $ 8,644 $ (1,100 ) $ 107,585 Common stocks 29,280 112 — 29,392 Total equity securities $ 129,321 $ 8,756 $ (1,100 ) $ 136,977 Available-For-Sale Fixed Maturity and Equity Securities by Investment Category December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-credit losses on other-than-temporary impairments (1) (Dollars in thousands) Fixed maturities: Corporate (2) $ 3,464,402 $ 192,149 $ (137,844 ) $ 3,518,707 $ 351 Residential mortgage-backed 436,969 33,880 (5,343 ) 465,506 (3,584 ) Commercial mortgage-backed 514,195 42,284 (2,487 ) 553,992 — Other asset-backed 578,692 11,554 (7,124 ) 583,122 3,058 United States Government and agencies 41,050 3,129 (81 ) 44,098 — State, municipal and other governments 1,344,611 129,923 (2,183 ) 1,472,351 — Total fixed maturities $ 6,379,919 $ 412,919 $ (155,062 ) $ 6,637,776 $ (175 ) Equity securities: Non-redeemable preferred stocks $ 87,029 $ 6,095 $ (1,173 ) $ 91,951 Common stocks 29,307 450 (41 ) 29,716 Total equity securities $ 116,336 $ 6,545 $ (1,214 ) $ 121,667 (1) Non-credit losses, subsequent to the initial impairment measurement date, on other-than-temporary impairment (OTTI) losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for corporate and other asset-backed securities were in an unrealized gain position at September 30, 2016 and December 31, 2015 due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities. (2) Corporate securities include hybrid preferred securities with a carrying value of $26.9 million at September 30, 2016 and $43.5 million at December 31, 2015 . Corporate securities also include redeemable preferred stock with a carrying value of $25.9 million at September 30, 2016 and $24.8 million at December 31, 2015 . |
Investments Classified by Contractual Maturity Date [Table Text Block] | Available-For-Sale Fixed Maturities by Maturity Date September 30, 2016 Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 75,477 $ 77,053 Due after one year through five years 749,459 817,473 Due after five years through ten years 767,278 822,740 Due after ten years 3,295,885 3,710,311 4,888,099 5,427,577 Mortgage-backed and other asset-backed 1,671,393 1,790,018 Total fixed maturities $ 6,559,492 $ 7,217,595 Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Fixed maturities not due at a single maturity date have been included in the above table in the year of final contractual maturity. |
Unrealized Gain (Loss) on Investments [Table Text Block] | Net Unrealized Gains (Losses) on Investments in Accumulated Other Comprehensive Income September 30, December 31, (Dollars in thousands) Net unrealized appreciation on: Fixed maturities - available for sale $ 658,103 $ 257,857 Equity securities - available for sale 7,655 5,331 665,758 263,188 Adjustments for assumed changes in amortization pattern of: Deferred acquisition costs (207,140 ) (73,735 ) Value of insurance in force acquired 145 (3,087 ) Unearned revenue reserve 11,737 3,352 Adjustments for assumed changes in policyholder liabilities (11,217 ) (4,090 ) Provision for deferred income taxes (160,747 ) (64,955 ) Net unrealized investment gains $ 298,536 $ 120,673 Net unrealized investment gains and losses are recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. Subsequent changes in the fair value of securities for which a previous non-credit OTTI loss was recognized in accumulated other comprehensive income, are reported along with changes in fair value for which no OTTI losses were previously recognized. |
Schedule of Unrealized Loss on Investments [Table Text Block] | Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time September 30, 2016 Less than one year One year or more Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Percent of Total (Dollars in thousands) Fixed maturities: Corporate $ 148,699 $ (5,643 ) $ 218,384 $ (23,277 ) $ 367,083 $ (28,920 ) 79.2 % Residential mortgage-backed 27,082 (603 ) 24,647 (1,825 ) 51,729 (2,428 ) 6.7 Commercial mortgage-backed 6,512 (53 ) 6,977 (187 ) 13,489 (240 ) 0.7 Other asset-backed 121,800 (566 ) 91,575 (3,894 ) 213,375 (4,460 ) 12.2 State, municipal and other governments 14,658 (448 ) — — 14,658 (448 ) 1.2 Total fixed maturities $ 318,751 $ (7,313 ) $ 341,583 $ (29,183 ) $ 660,334 $ (36,496 ) 100.0 % Equity securities: Non-redeemable preferred stocks $ — $ — $ 13,463 $ (1,100 ) $ 13,463 $ (1,100 ) Total equity securities $ — $ — $ 13,463 $ (1,100 ) $ 13,463 $ (1,100 ) Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time December 31, 2015 Less than one year One year or more Total Description of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Percent of Total (Dollars in thousands) Fixed maturities: Corporate $ 1,115,324 $ (96,062 ) $ 115,730 $ (41,782 ) $ 1,231,054 $ (137,844 ) 88.9 % Residential mortgage-backed 21,646 (725 ) 26,537 (4,618 ) 48,183 (5,343 ) 3.4 Commercial mortgage-backed 48,424 (1,947 ) 7,657 (540 ) 56,081 (2,487 ) 1.6 Other asset-backed 285,395 (3,323 ) 65,298 (3,801 ) 350,693 (7,124 ) 4.6 United States Government and agencies 4,807 (81 ) — — 4,807 (81 ) 0.1 State, municipal and other governments 77,980 (2,183 ) — — 77,980 (2,183 ) 1.4 Total fixed maturities $ 1,553,576 $ (104,321 ) $ 215,222 $ (50,741 ) $ 1,768,798 $ (155,062 ) 100.0 % Equity securities: Non-redeemable preferred stocks $ 21,280 $ (573 ) $ 4,400 $ (600 ) $ 25,680 $ (1,173 ) Common stocks 1,428 (41 ) — — 1,428 (41 ) Total equity securities $ 22,708 $ (614 ) $ 4,400 $ (600 ) $ 27,108 $ (1,214 ) Fixed maturities in the above tables include 216 securities from 177 issuers at September 30, 2016 and 542 securities from 435 issuers at December 31, 2015 . Unrealized losses decreased during the nine-month period of 2016 due primarily to a decrease in treasury rates as well as a decrease in credit spreads, particularly in the energy sector. We do not consider securities to be OTTI when the market decline is attributable to factors such as interest rate movements, market volatility, liquidity, spread widening and credit quality when recovery of all amounts due under the contractual terms of the security is anticipated. Based on our intent not to sell or our belief that we will not be required to sell these securities before recovery of their amortized cost basis, we do not consider these investments to be OTTI at September 30, 2016 . We will monitor the investment portfolio for future changes in issuer facts and circumstances that could result in future impairments beyond those currently identified. Excluding mortgage- and asset-backed securities, no securities from the same issuer had an aggregate unrealized loss in excess of $2.8 million at September 30, 2016 , with the largest unrealized loss from an electricity provider. With respect to mortgage- and asset-backed securities not backed by the United States Government, our largest aggregate unrealized loss from the same issuer at September 30, 2016 was $1.1 million , consisting of two different securities that are backed by different pools of Alt-A residential mortgage loans. Both securities are rated non-investment grade and the largest unrealized loss totaled $0.7 million . |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | Credit Loss Component of Other-Than-Temporary Impairments on Fixed Maturities Nine months ended September 30, 2016 2015 (Dollars in thousands) Balance at beginning of period $ (11,498 ) $ (16,772 ) Increases to previously impaired investments (2,172 ) (363 ) Reductions due to investments sold 1,054 757 Balance at end of period $ (12,616 ) $ (16,378 ) The table above sets forth the amount of credit loss impairments on fixed maturities held by the Company as of the dates indicated for which a portion of the OTTI was recognized in other comprehensive income (loss) and corresponding changes in such amounts. |
Realized Gain (Loss) on Investments [Table Text Block] | Realized Gains (Losses) - Recorded in Income Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Realized gains (losses) on sales of investments Fixed maturities: Gross gains $ — $ 136 $ 7,379 $ 2,884 Gross losses — (229 ) (8,378 ) (1,832 ) Equity securities 529 — 529 — Securities and indebtedness of related parties 117 — 437 6,457 646 (93 ) (33 ) 7,509 Impairment losses recognized in earnings: Credit-related portion of fixed maturity losses (1) — (363 ) (2,172 ) (363 ) Other credit-related (25 ) (50 ) (75 ) (210 ) Net realized losses on investments recorded in income $ 621 $ (506 ) $ (2,280 ) $ 6,936 (1) Amount represents the credit-related losses recognized for fixed maturities that were impaired to the present value of estimated future cash flows through income but not written down to fair value. As discussed above, the non-credit portion of the losses have been recognized in other comprehensive income (loss). Proceeds from sales of fixed maturities totaled $104.7 million during the nine months ended September 30, 2016 and $88.3 million during the nine months ended September 30, 2015 . Realized gains and losses on sales of investments are determined on the basis of specific identification. |
Mortgage Loans by Colateral Type [Table Text Block] | Mortgage Loans by Collateral Type September 30, 2016 December 31, 2015 Collateral Type Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) Office $ 364,698 46.7 % $ 333,400 44.8 % Retail 220,917 28.3 227,039 30.5 Industrial 141,948 18.1 133,085 17.9 Other 53,954 6.9 50,779 6.8 Total $ 781,517 100.0 % $ 744,303 100.0 % |
Mortgage Loans by Geograpic Location [Table Text Block] | Mortgage Loans by Geographic Location within the United States September 30, 2016 December 31, 2015 Region of the United States Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) South Atlantic $ 247,524 31.7 % $ 233,522 31.4 % West North Central 103,101 13.2 102,555 13.8 Pacific 100,304 12.8 100,188 13.4 East North Central 91,914 11.8 86,019 11.5 Mountain 80,873 10.4 78,750 10.6 West South Central 61,266 7.8 66,677 9.0 Other 96,535 12.3 76,592 10.3 Total $ 781,517 100.0 % $ 744,303 100.0 % |
Mortgage Loans by loan to value ratio [Table Text Block] | Mortgage Loans by Loan-to-Value Ratio September 30, 2016 December 31, 2015 Loan-to-Value Ratio Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 0% - 50% $ 269,366 34.5 % $ 264,605 35.6 % 51% - 60% 182,855 23.4 169,045 22.7 61% - 70% 266,845 34.1 234,544 31.5 71% - 80% 45,117 5.8 67,072 9.0 81% - 90% 17,334 2.2 9,037 1.2 Total $ 781,517 100.0 % $ 744,303 100.0 % The loan-to-value ratio is determined using the most recent appraised value. Appraisals are updated periodically when there is indication of a possible significant collateral decline or there are loan modifications or refinance requests. |
Mortgage loans by year of origination [Table Text Block] | Mortgage Loans by Year of Origination September 30, 2016 December 31, 2015 Year of Origination Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 2016 $ 105,923 13.6 % $ — — % 2015 151,727 19.4 154,582 20.9 2014 81,477 10.4 83,546 11.2 2013 70,554 9.0 79,879 10.7 2012 63,806 8.2 65,817 8.8 2011 and prior 308,030 39.4 360,479 48.4 Total $ 781,517 100.0 % $ 744,303 100.0 % |
Impaired Financing Receivables [Table Text Block] | Impaired Mortgage Loans September 30, 2016 December 31, 2015 (Dollars in thousands) Unpaid principal balance $ 21,542 $ 21,766 Less: Related allowance (766 ) (851 ) Discount — (87 ) Carrying value of impaired mortgage loans $ 20,776 $ 20,828 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance on Mortgage Loans Nine months ended September 30, 2016 2015 (Dollars in thousands) Balance at beginning of period $ 851 $ 857 Charge offs (85 ) (6 ) Balance at end of period $ 766 $ 851 |
Affordable Housing Program [Text Block] | We invest in non-guaranteed federal LIHTC, which are included in securities and indebtedness of related parties on the balance sheet. The carrying value of these investments totaled $92.2 million at September 30, 2016 and $94.2 million at December 31, 2015. There were no impairment losses recorded on these investments during the third quarter of 2016 or 2015. We use the equity method of accounting for these investments and recorded the following in our consolidated statement of operations. LIHTC Equity Income (Loss), Net of Related Income Taxes Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Equity losses from LIHTC $ (1,811 ) $ (1,554 ) $ (5,858 ) $ (5,396 ) Income tax benefits: Tax benefits from equity losses 634 544 2,050 1,889 Investment tax credits 3,581 3,434 10,583 10,109 Equity income from LIHTC, net of related income tax benefits $ 2,404 $ 2,424 $ 6,775 $ 6,602 At September 30, 2016 , we had committed to provide additional funds for limited partnerships and limited liability companies in which we invest. The amounts of these unfunded commitments totaled $29.8 million , including $4.5 million for LIHTC commitments, which are summarized by year in the following table. LIHTC Commitments by Year September 30, 2016 (Dollars in thousands) 2016 $ 2,372 2017 1,164 2018-2024 968 Total $ 4,504 |
Schedule of Variable Interest Entities [Table Text Block] | VIE Investments by Category September 30, 2016 December 31, 2015 Carrying Value Maximum Exposure to Loss Carrying Value (1) Maximum Exposure to Loss (1) (Dollars in thousands) LIHTC $ 92,238 $ 96,742 $ 94,170 $ 102,626 Investment companies 21,077 40,108 20,004 35,604 Real estate limited partnerships 10,122 14,624 9,554 15,610 Other 236 2,037 637 2,448 Total $ 123,673 $ 153,511 $ 124,365 $ 156,288 (1) Prior year values have been restated for comparability with the amounts as presented under the new accounting guidance discussed in Note 1. |
Schedule of Derivative Instruments [Table Text Block] | Derivatives Instruments by Type September 30, 2016 December 31, 2015 (Dollars in thousands) Assets Freestanding derivatives: Call options (reported in other investments) $ 7,658 $ 2,331 Embedded derivatives: Modified coinsurance (reported in reinsurance recoverable) 4,045 2,636 Interest-only security (reported in fixed maturities) 3,091 4,551 Total assets $ 14,794 $ 9,518 Liabilities Embedded derivatives: Index annuity and universal life products (reported in liability for future policy benefits) $ 15,469 $ 9,374 Modified coinsurance agreements (reported in other liabilities) 368 56 Total liabilities $ 15,837 $ 9,430 Derivative Income (Loss) Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Change in fair value of free standing derivatives: Call options $ 1,897 $ (1,948 ) $ 4,186 $ (2,632 ) Change in fair value of embedded derivatives: Modified coinsurance agreements 270 (423 ) 1,097 (629 ) Interest-only security 14 — (451 ) — Index annuity and universal life products (669 ) 1,575 (3,358 ) 1,792 Call option amortization (1,509 ) (821 ) (3,983 ) (2,177 ) Call option proceeds 1,234 771 1,308 2,724 Total income (loss) from derivatives $ 1,237 $ (846 ) $ (1,201 ) $ (922 ) Derivative income (loss) is reported in net investment income except for the change in fair value of the embedded derivatives on our index annuity and universal life products, which is reported in interest sensitive product benefits. The call options are supported by securities collateral received of $4.9 million at September 30, 2016 , which is held in a separate custodial account. Subject to certain constraints, we are permitted to sell or re-pledge this collateral, but do not have legal rights to the collateral; accordingly, it has not been recorded on our balance sheet. At September 30, 2016 , none of the collateral had been sold or re-pledged. All of our counterparties are rated A- or better by a nationally recognized statistical rating organization. |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Values [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Values and Carrying Values September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value (Dollars in thousands) Assets Fixed maturities - available for sale $ 7,217,595 $ 7,217,595 $ 6,637,776 $ 6,637,776 Equity securities - available for sale 136,977 136,977 121,667 121,667 Mortgage loans 781,517 832,253 744,303 780,624 Policy loans 188,536 245,466 185,784 230,153 Other investments 8,257 9,615 2,331 2,331 Cash, cash equivalents and short-term investments 74,346 74,346 57,741 57,741 Reinsurance recoverable 4,045 4,045 2,636 2,636 Assets held in separate accounts 605,729 605,729 625,257 625,257 Liabilities Future policy benefits $ 3,955,609 $ 3,981,706 $ 3,750,186 $ 3,618,145 Supplementary contracts without life contingencies 330,996 342,055 339,929 339,717 Advance premiums and other deposits 252,661 252,661 245,269 245,269 Short-term debt — — 15,000 15,000 Long-term debt 97,000 70,616 97,000 68,133 Other liabilities 368 368 56 56 Liabilities related to separate accounts 605,729 602,134 625,257 620,676 |
Valuation of our Financial Instruments Measured on Recurring Basis by hierarchy levels [Table Text Block] | Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels September 30, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,778,875 $ 54,932 $ 3,833,807 Residential mortgage-backed securities — 437,227 — 437,227 Commercial mortgage-backed securities — 521,441 96,699 618,140 Other asset-backed securities — 665,874 68,777 734,651 United States Government and agencies 12,964 20,693 9,218 42,875 State, municipal and other governments — 1,550,895 — 1,550,895 Non-redeemable preferred stocks — 99,873 7,712 107,585 Common stocks 2,971 26,421 — 29,392 Other investments — 7,658 — 7,658 Cash, cash equivalents and short-term investments 74,346 — — 74,346 Reinsurance recoverable — 4,045 — 4,045 Assets held in separate accounts 605,729 — — 605,729 Total assets $ 696,010 $ 7,113,002 $ 237,338 $ 8,046,350 Liabilities Future policy benefits - index annuity embedded derivatives $ — $ — $ 15,469 $ 15,469 Other liabilities — 368 — 368 Total liabilities $ — $ 368 $ 15,469 $ 15,837 Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,469,631 $ 49,076 $ 3,518,707 Residential mortgage-backed securities — 461,777 3,729 465,506 Commercial mortgage-backed securities — 465,812 88,180 553,992 Other asset-backed securities — 527,565 55,557 583,122 United States Government and agencies 14,760 20,612 8,726 44,098 State, municipal and other governments — 1,472,351 — 1,472,351 Non-redeemable preferred stocks — 84,480 7,471 91,951 Common stocks 4,728 24,988 — 29,716 Other investments — 2,331 — 2,331 Cash, cash equivalents and short-term investments 57,741 — — 57,741 Reinsurance recoverable — 2,636 — 2,636 Assets held in separate accounts 625,257 — — 625,257 Total assets $ 702,486 $ 6,532,183 $ 212,739 $ 7,447,408 Liabilities Future policy benefits - index annuity embedded derivatives $ — $ — $ 9,374 $ 9,374 Other liabilities — 56 — 56 Total liabilities $ — $ 56 $ 9,374 $ 9,430 |
Level 3 fixed maturities on Measurement on Recurring Basis by Valuation Technique [Table Text Block] | Level 3 Fixed Maturities by Valuation Source - Recurring Basis September 30, 2016 Third-party vendors Priced Total (Dollars in thousands) Corporate securities $ 18,361 $ 36,571 $ 54,932 Commercial mortgage-backed securities 96,699 — 96,699 Other asset-backed securities 48,317 20,460 68,777 United States Government and agencies — 9,218 9,218 Total $ 163,377 $ 66,249 $ 229,626 Percent of total 71.1 % 28.9 % 100.0 % December 31, 2015 Third-party vendors Priced internally Total (Dollars in thousands) Corporate securities $ 17,208 $ 31,868 $ 49,076 Residential mortgage-backed securities — 3,729 3,729 Commercial mortgage-backed securities 88,180 — 88,180 Other asset-backed securities 35,420 20,137 55,557 United States Government and agencies — 8,726 8,726 Total $ 140,808 $ 64,460 $ 205,268 Percent of total 68.6 % 31.4 % 100.0 % |
Quantitative Information about Level 3 Fair Value Measurement Inputs [Text Block] | Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis September 30, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 42,947 Discounted cash flow Credit spread 0.98% - 11.00% (6.93%) Commercial mortgage-backed 96,699 Discounted cash flow Credit spread 1.10% - 4.15% (2.96%) Other asset-backed securities 11,814 Discounted cash flow Credit spread 1.14% - 5.70% (4.03%) United States Government and agencies 9,218 Discounted cash flow Credit spread 1.65% (1.65%) Non-redeemable preferred stocks 7,712 Discounted cash flow Credit spread 4.50% (4.50%) Total assets $ 168,390 Liabilities Future policy benefits - index annuity embedded derivatives $ 15,469 Discounted cash flow Credit risk Risk margin 0.77% - 2.22% (1.35%) 0.15% - 0.40% (0.25%) December 31, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 33,508 Discounted cash flow Credit spread 1.16% - 17.50% (11.26%) Commercial mortgage-backed 71,100 Discounted cash flow Credit spread 1.10% - 4.15% (3.12%) Other asset-backed securities 13,737 Discounted cash flow Credit spread 1.25% - 7.90% (5.61%) United States Government and agencies 8,727 Discounted cash flow Credit spread 2.59% (2.59%) Non-redeemable preferred stocks 7,471 Discounted cash flow Credit spread 4.55% (4.55%) Total assets $ 134,543 Liabilities Future policy benefits - index annuity embedded derivatives $ 9,374 Discounted cash flow Credit risk 0.80% - 2.25% (1.45%) The tables above exclude certain securities for which the fair value was based on non-binding broker quotes where we could not reasonably obtain the quantitative unobservable inputs. |
Level 3 Financial Instruments Changes in Fair Value [Table Text Block] | Level 3 Financial Instruments Changes in Fair Value - Recurring Basis September 30, 2016 Realized and unrealized gains (losses), net Balance, December 31, 2015 Purchases Disposals Included in net income Included in other compre-hensive income Transfers into Level 3 (1) Transfers out of Level 3 (1) Amort-ization included in net income Balance, September 30, 2016 (Dollars in thousands) Assets Corporate securities $ 49,076 $ 2,000 $ (9,500 ) $ — $ 243 $ 26,738 $ (13,572 ) $ (53 ) $ 54,932 Residential mortgage-backed securities 3,729 — (3,722 ) — (137 ) — — 130 — Commercial mortgage-backed securities 88,180 18,826 (1,052 ) — 7,093 — (16,418 ) 70 96,699 Other asset-backed securities 55,557 46,010 (5,864 ) — 691 30,098 (57,738 ) 23 68,777 United States Government and agencies 8,726 — — — 486 — — 6 9,218 State, municipal and other governments — — — — 108 2,393 (2,501 ) — — Non-redeemable preferred stocks 7,471 — — — 241 — — — 7,712 Total assets $ 212,739 $ 66,836 $ (20,138 ) $ — $ 8,725 $ 59,229 $ (90,229 ) $ 176 $ 237,338 Liabilities Future policy benefits - index annuity embedded derivatives $ 9,374 $ 4,533 $ (73 ) $ 1,635 $ — $ — $ — $ — $ 15,469 Total liabilities $ 9,374 $ 4,533 $ (73 ) $ 1,635 $ — $ — $ — $ — $ 15,469 Level 3 Financial Instruments Changes in Fair Value - Recurring Basis September 30, 2015 Realized and unrealized gains (losses), net Balance, December 31, 2014 Purchases Disposals Included in net income Included in other compre-hensive income Transfers into Level 3 (1) Transfers out of Level 3 (1) Amort-ization included in net income Balance, September 30, 2015 (Dollars in thousands) Assets Corporate securities $ 64,239 $ 12,993 $ (16,061 ) $ — $ (4,321 ) $ 18,451 $ (25,174 ) $ 583 $ 50,710 Residential mortgage-backed securities — 19,353 — — 273 — (13,667 ) 5 5,964 Commercial mortgage-backed securities 77,891 17,286 (688 ) — (2,088 ) — (2,334 ) 79 90,146 Other asset-backed securities 116,141 46,216 (5,225 ) — (324 ) — (98,759 ) (3 ) 58,046 United States Government and agencies 9,065 — — — (61 ) — — 5 9,009 Non-redeemable preferred stocks 8,054 — — — (270 ) — — — 7,784 Total assets $ 275,390 $ 95,848 $ (21,974 ) $ — $ (6,791 ) $ 18,451 $ (139,934 ) $ 669 $ 221,659 Liabilities Future policy benefits - index annuity embedded derivatives $ 8,681 $ 3,219 $ (713 ) $ (2,746 ) $ — $ — $ — $ — $ 8,441 Total liabilities $ 8,681 $ 3,219 $ (713 ) $ (2,746 ) $ — $ — $ — $ — $ 8,441 (1) Transfers into Level 3 represent assets previously priced using an external pricing service with access to observable inputs no longer available and therefore, were priced using non-binding broker quotes. Transfers out of Level 3 include those assets that we are now able to obtain pricing from a third party pricing vendor that uses observable inputs. The fair values of newly issued securities often require additional estimation until a market is created, which is generally within a few months after issuance. Once a market is created, as was the case for the majority of the security transfers out of the Level 3 category above, Level 2 valuation sources become available. There were no transfers between Level 1 and Level 2 during the periods presented above. |
Financial Instruments Not Reported at Value [Table Text Block] | Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels September 30, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Mortgage loans $ — $ — $ 832,253 $ 832,253 Policy loans — — 245,466 245,466 Other investments — — 1,957 1,957 Total assets $ — $ — $ 1,079,676 $ 1,079,676 Liabilities Future policy benefits $ — $ — $ 3,966,239 $ 3,966,239 Supplementary contracts without life contingencies — — 342,055 342,055 Advance premiums and other deposits — — 252,661 252,661 Long-term debt — — 70,616 70,616 Liabilities related to separate accounts — — 602,134 602,134 Total liabilities $ — $ — $ 5,233,705 $ 5,233,705 December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total (Dollars in thousands) Assets Mortgage loans $ — $ — $ 780,624 $ 780,624 Policy loans — — 230,153 230,153 Total assets $ — $ — $ 1,010,777 $ 1,010,777 Liabilities Future policy benefits $ — $ — $ 3,608,771 $ 3,608,771 Supplementary contracts without life contingencies — — 339,717 339,717 Advance premiums and other deposits — — 245,269 245,269 Short-term debt — — 15,000 15,000 Long-term debt — — 68,133 68,133 Liabilities related to separate accounts — — 620,676 620,676 Total liabilities $ — $ — $ 4,897,566 $ 4,897,566 |
Defined Benefit Plan (Tables)
Defined Benefit Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plan [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Multiemployer Plan Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Service cost $ 1,448 $ 1,488 $ 4,344 $ 4,464 Interest cost 3,612 3,300 10,836 9,900 Expected return on assets (4,466 ) (4,463 ) (13,398 ) (13,389 ) Amortization of prior service cost 36 36 108 108 Amortization of actuarial loss 2,358 2,598 7,074 7,794 Effect of settlement — 2,944 — 7,434 Net periodic pension cost $ 2,988 $ 5,903 $ 8,964 $ 16,311 FBL Financial Group, Inc. share of net periodic pension costs $ 952 $ 1,913 $ 2,856 $ 5,286 Pension settlement charges are recognized when total cash payments for lump sum distributions exceed the sum of the service and interest cost for the year. Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Other Plans Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Service cost $ 83 $ 109 $ 251 $ 327 Interest cost 242 250 724 750 Amortization of prior service cost — (3 ) — (9 ) Amortization of actuarial loss 229 382 689 1,146 Net periodic pension cost $ 554 $ 738 $ 1,664 $ 2,214 FBL Financial Group, Inc. share of net periodic pension costs $ 315 $ 418 $ 945 $ 1,254 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class [Table Text Block] | Reconciliation of Outstanding Common Stock Class A Class B Total Shares Dollars Shares Dollars Shares Dollars (Dollars in thousands) Outstanding at January 1, 2015 24,703,903 $ 144,625 11,413 $ 72 24,715,316 $ 144,697 Issuance of common stock under compensation plans 129,513 3,790 — — 129,513 3,790 Purchase of common stock (66,904 ) (399 ) — — (66,904 ) (399 ) Outstanding at September 30, 2015 24,766,512 $ 148,016 11,413 $ 72 24,777,925 $ 148,088 Outstanding at January 1, 2016 24,796,763 $ 149,248 11,413 $ 72 24,808,176 $ 149,320 Issuance of common stock under compensation plans 76,805 2,917 — — 76,805 2,917 Purchase of common stock (10,322 ) (63 ) — — (10,322 ) (63 ) Outstanding at September 30, 2016 24,863,246 $ 152,102 11,413 $ 72 24,874,659 $ 152,174 |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Income, Net of Tax and Other Offsets Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) Accumulated Non-Credit Impairment Losses Underfunded Status of Postretirement Benefit Plans Total (Dollars in thousands) Balance at January 1, 2015 $ 266,211 $ 1,131 $ (8,932 ) $ 258,410 Other comprehensive loss before reclassifications (88,917 ) 32 — (88,885 ) Reclassification adjustments (603 ) (85 ) 723 35 Balance at September 30, 2015 $ 176,691 $ 1,078 $ (8,209 ) $ 169,560 Balance at January 1, 2016 $ 120,787 $ (114 ) $ (6,141 ) $ 114,532 Other comprehensive income before reclassifications 175,562 3,311 — 178,873 Reclassification adjustments (58 ) (952 ) 433 (577 ) Balance at September 30, 2016 $ 296,291 $ 2,245 $ (5,708 ) $ 292,828 (1) Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 for further information. |
Disclosure of Reclassification Amount [Text Block] | Accumulated Other Comprehensive Income Reclassification Adjustments Nine months ended September 30, 2016 Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Status of Postretirement Benefit Plans Total (Dollars in thousands) Realized capital losses on sales of investments $ 470 $ — $ — $ 470 Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities (559 ) 58 — (501 ) Other-than-temporary impairment losses — (1,522 ) — (1,522 ) Other expenses: Change in unrecognized postretirement items: Net actuarial loss — — 666 666 Reclassifications before income taxes (89 ) (1,464 ) 666 (887 ) Income taxes 31 512 (233 ) 310 Reclassification adjustments $ (58 ) $ (952 ) $ 433 $ (577 ) Nine months ended September 30, 2015 Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Status of Postretirement Benefit Plans Total (Dollars in thousands) Realized capital gains on sales of investments $ (1,052 ) $ — $ — $ (1,052 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities 125 7 — 132 Other than temporary impairment losses — (146 ) — (146 ) Other expenses: Change in unrecognized postretirement items: Prior service costs — — (9 ) (9 ) Net actuarial loss — — 1,122 1,122 Reclassifications before income taxes (927 ) (139 ) 1,113 47 Income taxes 324 54 (390 ) (12 ) Reclassification adjustments $ (603 ) $ (85 ) $ 723 $ 35 (1) See Note 2 for further information. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Computation of Earnings per Common Share Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands, except per share data) Numerator: Net income attributable to FBL Financial Group, Inc. $ 30,017 $ 26,659 $ 80,343 $ 82,622 Less: Dividends on Series B preferred stock 37 37 112 112 Income available to common stockholders $ 29,980 $ 26,622 $ 80,231 $ 82,510 Denominator: Weighted average shares - basic 24,990,441 24,923,202 24,977,342 24,926,188 Effect of dilutive securities - stock-based compensation 39,075 79,850 46,757 93,275 Weighted average shares - diluted 25,029,516 25,003,052 25,024,099 25,019,463 Earnings per common share $ 1.20 $ 1.07 $ 3.21 $ 3.31 Earnings per common share - assuming dilution: $ 1.20 $ 1.06 $ 3.21 $ 3.30 There were no antidilutive stock options outstanding in either period presented. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial Information Concerning our Operating Segments Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Operating revenues: Annuity $ 54,839 $ 53,415 $ 160,972 $ 159,638 Life Insurance 101,030 101,431 309,357 305,897 Corporate and Other 22,659 23,530 69,366 70,978 178,528 178,376 539,695 536,513 Net realized gains (losses) on investments (1) 575 (511 ) (2,293 ) 6,934 Change in net unrealized gains/losses on derivatives (1) 2,181 (2,371 ) 4,833 (3,262 ) Consolidated revenues $ 181,284 $ 175,494 $ 542,235 $ 540,185 Pre-tax operating income: Annuity $ 17,075 $ 19,762 $ 50,571 $ 53,681 Life Insurance 15,245 18,355 43,789 41,784 Corporate and Other 5,219 (2,774 ) 9,680 5,673 37,539 35,343 104,040 101,138 Income taxes on operating income (8,657 ) (8,059 ) (23,164 ) (22,234 ) Net realized gains/losses on investments (1) 402 (307 ) (1,142 ) 4,421 Change in net unrealized gains/losses on derivatives (1) 733 (318 ) 609 (703 ) Consolidated net income attributable to FBL Financial Group, Inc. $ 30,017 $ 26,659 $ 80,343 $ 82,622 (1) Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired and income taxes attributable to these items. |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Under GAAP, premiums on whole life and term life policies are recognized as revenues over the premium-paying period and reported in the Life Insurance segment. The following chart provides a reconciliation of life insurance premiums collected to those reported in the GAAP financial statements. Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Traditional and universal life insurance premiums collected $ 67,270 $ 68,159 $ 209,194 $ 210,461 Premiums collected on interest sensitive products (20,714 ) (21,638 ) (62,923 ) (68,664 ) Traditional life insurance premiums collected 46,556 46,521 146,271 141,797 Change in due premiums and other 1,126 198 1,154 961 Traditional life insurance premiums $ 47,682 $ 46,719 $ 147,425 $ 142,758 There is no comparable GAAP financial measure for premiums collected on annuities and universal life-type products. GAAP revenues for those interest sensitive and variable products consist of various policy charges and fees assessed on those contracts, as summarized in the chart below. Interest Sensitive Product Charges by Segment Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Annuity Surrender charges and other $ 894 $ 542 $ 2,768 $ 1,810 Life Insurance Administration charges $ 3,347 $ 3,558 $ 10,434 $ 10,763 Cost of insurance charges 12,314 11,947 36,181 35,162 Surrender charges 259 254 785 740 Amortization of policy initiation fees (1,710 ) 1,235 (762 ) 2,251 Total $ 14,210 $ 16,994 $ 46,638 $ 48,916 Corporate and Other Administration charges $ 1,313 $ 1,392 $ 4,232 $ 4,426 Cost of insurance charges 7,450 7,500 22,399 22,311 Surrender charges 89 46 162 238 Separate account charges 2,019 2,204 5,990 6,722 Amortization of policy initiation fees (124 ) 1,178 800 1,827 Total $ 10,747 $ 12,320 $ 33,583 $ 35,524 Consolidated interest sensitive product charges $ 25,851 $ 29,856 $ 82,989 $ 86,250 |
Investment Operations Available
Investment Operations Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 6,559,492 | $ 6,379,919 | |
Available-for-sale Equity Securities, Amortized Cost Basis | 129,321 | 116,336 | |
Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 660,334 | 1,768,798 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 6,559,492 | 6,379,919 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 694,599 | 412,919 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (36,496) | (155,062) | |
Available-for-sale securities | 7,217,595 | 6,637,776 | |
Non-credit losses on other-than-temporary impairments | [1] | 3,453 | (175) |
Corporate | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 367,083 | 1,231,054 | |
Amortized Cost | 3,489,801 | 3,464,402 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 372,926 | 192,149 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (28,920) | (137,844) | |
Available-for-sale securities | 3,833,807 | 3,518,707 | |
Non-credit losses on other-than-temporary impairments | 285 | 351 | |
Hybrid preferred securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | 26,900 | 43,500 | |
Redeemable Preferred Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | 25,900 | 24,800 | |
Residential mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 51,729 | 48,183 | |
Amortized Cost | 400,918 | 436,969 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 38,737 | 33,880 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (2,428) | (5,343) | |
Available-for-sale securities | 437,227 | 465,506 | |
Non-credit losses on other-than-temporary impairments | (876) | (3,584) | |
Commercial mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,489 | 56,081 | |
Amortized Cost | 545,186 | 514,195 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 73,194 | 42,284 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (240) | (2,487) | |
Available-for-sale securities | 618,140 | 553,992 | |
Non-credit losses on other-than-temporary impairments | 0 | 0 | |
Other asset backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 213,375 | 350,693 | |
Amortized Cost | 725,289 | 578,692 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 13,822 | 11,554 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (4,460) | (7,124) | |
Available-for-sale securities | 734,651 | 583,122 | |
Non-credit losses on other-than-temporary impairments | 4,044 | 3,058 | |
United States Government and agencies | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,807 | ||
Amortized Cost | 38,632 | 41,050 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 4,243 | 3,129 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (81) | |
Available-for-sale securities | 42,875 | 44,098 | |
Non-credit losses on other-than-temporary impairments | 0 | 0 | |
State, municipal and other government [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 14,658 | 77,980 | |
Amortized Cost | 1,359,666 | 1,344,611 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 191,677 | 129,923 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (448) | (2,183) | |
Available-for-sale securities | 1,550,895 | 1,472,351 | |
Non-credit losses on other-than-temporary impairments | 0 | 0 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,463 | 27,108 | |
Available-for-sale Equity Securities, Amortized Cost Basis | 129,321 | 116,336 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 8,756 | 6,545 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (1,100) | (1,214) | |
Available-for-sale securities | 136,977 | 121,667 | |
Non-redeemable preferred stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,463 | 25,680 | |
Amortized Cost | 100,041 | 87,029 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 8,644 | 6,095 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (1,100) | (1,173) | |
Available-for-sale securities | 107,585 | 91,951 | |
Common Stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,428 | ||
Amortized Cost | 29,280 | 29,307 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 112 | 450 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (41) | |
Available-for-sale securities | $ 29,392 | $ 29,716 | |
[1] | Non-credit losses, subsequent to the initial impairment measurement date, on other-than-temporary impairment (OTTI) losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for corporate and other asset-backed securities were in an unrealized gain position at September 30, 2016 and December 31, 2015 due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities. |
Investment Operations Availab23
Investment Operations Available-for-sale Fixed Maturities by Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, amortized cost basis | $ 75,477 | |
Due after one year through five years, amortized cost basis | 749,459 | |
Due after five years through ten years, amortized cost basis | 767,278 | |
Due after ten years, amortized cost basis | 3,295,885 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis | 4,888,099 | |
Mortgage-backed and other asset-backed, amortized cost basis | 1,671,393 | |
Total fixed maturities, amortized cost basis | 6,559,492 | $ 6,379,919 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, fair value | 77,053 | |
Due after one year through five years, fair value | 817,473 | |
Due after five years through ten years, fair value | 822,740 | |
Due after ten years, fair value | 3,710,311 | |
Total fixed maturities with maturity date, fair value | 5,427,577 | |
Mortgage-backed and other asset-backed, fair value | 1,790,018 | |
Total fixed maturities, fair value | $ 7,217,595 | $ 6,637,776 |
Investment Operations Net Unrea
Investment Operations Net Unrealized Gains (Losses) on Investments in AOCI (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Net Unrealized Gains Losses [Line Items] | |||||
Assumed changes in amortization of DAC | $ (207,140) | $ (73,735) | |||
Assumed changes in amortization pattern of VIIF | 145 | (3,087) | |||
Assumed changes in amortization pattern of URR | 11,737 | 3,352 | |||
Assumed change in policyholder liability | (11,217) | (4,090) | |||
Provision for deferred income taxes | (160,747) | (64,955) | |||
Accumulated other comprehensive income | 292,828 | 114,532 | $ 169,560 | $ 258,410 | |
Debt Securities [Member] | |||||
Net Unrealized Gains Losses [Line Items] | |||||
Unrealized appreciation on fixed maturities available for sale | 658,103 | 257,857 | |||
Equity Securities [Member] | |||||
Net Unrealized Gains Losses [Line Items] | |||||
Unrealized appreciation on fixed maturities available for sale | 7,655 | 5,331 | |||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Net Unrealized Gains Losses [Line Items] | |||||
Unrealized appreciation on fixed maturities available for sale | 665,758 | 263,188 | |||
Accumulated other comprehensive income | [1] | $ 298,536 | $ 120,673 | ||
[1] | Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 for further information. |
Investment Operations Unrealize
Investment Operations Unrealized Losses by Length of Time (Details) $ in Thousands | Sep. 30, 2016USD ($)issuerssecurities | Dec. 31, 2015USD ($)issuerssecurities |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities | 216 | 542 |
Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Issuers | issuers | 177 | 435 |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 148,699 | $ 1,115,324 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5,643) | (96,062) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 218,384 | 115,730 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (23,277) | (41,782) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 367,083 | 1,231,054 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (28,920) | $ (137,844) |
percent of total | 79.20% | 88.90% |
Available for sale Securities Continuous Unrealized Loss Position Maximum Loss by issuer | $ 2,800 | |
Residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 27,082 | $ 21,646 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (603) | (725) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 24,647 | 26,537 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,825) | (4,618) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 51,729 | 48,183 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (2,428) | $ (5,343) |
percent of total | 6.70% | 3.40% |
Commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 6,512 | $ 48,424 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (53) | (1,947) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 6,977 | 7,657 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (187) | (540) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,489 | 56,081 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (240) | $ (2,487) |
percent of total | 0.70% | 1.60% |
Other asset backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 121,800 | $ 285,395 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (566) | (3,323) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 91,575 | 65,298 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3,894) | (3,801) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 213,375 | 350,693 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (4,460) | $ (7,124) |
percent of total | 12.20% | 4.60% |
United States Government and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 4,807 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (81) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,807 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (81) | |
percent of total | 0.10% | |
State, municipal and other government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 14,658 | $ 77,980 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (448) | (2,183) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 14,658 | 77,980 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (448) | $ (2,183) |
percent of total | 1.20% | 1.40% |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 318,751 | $ 1,553,576 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (7,313) | (104,321) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 341,583 | 215,222 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (29,183) | (50,741) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 660,334 | 1,768,798 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (36,496) | $ (155,062) |
percent of total | 100.00% | 100.00% |
Non-redeemable preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | $ 21,280 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (573) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 13,463 | 4,400 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,100) | (600) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,463 | 25,680 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,100) | (1,173) |
Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,428 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (41) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,428 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (41) | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 22,708 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (614) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 13,463 | 4,400 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,100) | (600) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,463 | 27,108 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,100) | $ (1,214) |
Commercial mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale Securities Continuous Unrealized Loss Position Maximum Loss by issuer | 1,100 | |
Available for sale Securities Continuous Unrealized Loss Position Maximum Loss by security | $ 700 |
Investment Operations Credit lo
Investment Operations Credit loss component of Other-than-temporary Impairments on Fixed Maturities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at beginning of period | $ (11,498) | $ (16,772) |
Increases to previously impaired assets | (2,172) | (363) |
Reductions due to securities sold | 1,054 | 757 |
Balance at end of period | $ (12,616) | $ (16,378) |
Investment Operations Realized
Investment Operations Realized Gains (Losses) - Recorded in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Gain (Loss) on Investments [Line Items] | ||||
Net realized capital gains on sales of investments | $ 646 | $ (93) | $ (33) | $ 7,509 |
Net impairment loss recognized in earnings | (25) | (413) | (2,247) | (573) |
Realized gains (losses) on investments recorded in income | 621 | (506) | (2,280) | 6,936 |
Proceeds from Sale of Available-for-sale Securities | 104,700 | 88,300 | ||
Categories of Investments, Cost-method Investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gains (Losses) on Sales of Other Assets | 117 | 0 | 437 | 6,457 |
Debt Securities [Member] | Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross gains - fixed maturities - available for sale | 0 | 136 | 7,379 | 2,884 |
Gross losses - fixed maturities - available for sale | 0 | (229) | (8,378) | (1,832) |
Equity Securities [Member] | Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | 529 | 0 | 529 | 0 |
Credit related [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net impairment loss recognized in earnings | 0 | (363) | (2,172) | (363) |
Other credit-related [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net impairment loss recognized in earnings | $ (25) | $ (50) | $ (75) | $ (210) |
Investment Operations Mortgage
Investment Operations Mortgage Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Contractual Obligation | $ 33,400 | |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 781,517 | $ 744,303 |
Percentage of Mortgage Loans | 100.00% | 100.00% |
Year of origination 2016 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 105,923 | $ 0 |
Percentage of Mortgage Loans | 13.60% | 0.00% |
Year of origination 2015 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 151,727 | $ 154,582 |
Percentage of Mortgage Loans | 19.40% | 20.90% |
Year of origination 2014 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 81,477 | $ 83,546 |
Percentage of Mortgage Loans | 10.40% | 11.20% |
Year of origination 2013 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 70,554 | $ 79,879 |
Percentage of Mortgage Loans | 9.00% | 10.70% |
Year of origination 2012 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 63,806 | $ 65,817 |
Percentage of Mortgage Loans | 8.20% | 8.80% |
Year of origination prior [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 308,030 | $ 360,479 |
Percentage of Mortgage Loans | 39.40% | 48.40% |
0% to 50% loan to value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 269,366 | $ 264,605 |
Percentage of Mortgage Loans | 34.50% | 35.60% |
51% to 60% loan-to-value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 182,855 | $ 169,045 |
Percentage of Mortgage Loans | 23.40% | 22.70% |
61% to 70% loan-to-value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 266,845 | $ 234,544 |
Percentage of Mortgage Loans | 34.10% | 31.50% |
71% to 80% loan-to-value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 45,117 | $ 67,072 |
Percentage of Mortgage Loans | 5.80% | 9.00% |
81% to 90% loan to value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 17,334 | $ 9,037 |
Percentage of Mortgage Loans | 2.20% | 1.20% |
South Atlantic [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 247,524 | $ 233,522 |
Percentage of Mortgage Loans | 31.70% | 31.40% |
West North Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 103,101 | $ 102,555 |
Percentage of Mortgage Loans | 13.20% | 13.80% |
Pacific [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 100,304 | $ 100,188 |
Percentage of Mortgage Loans | 12.80% | 13.40% |
East North Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 91,914 | $ 86,019 |
Percentage of Mortgage Loans | 11.80% | 11.50% |
Mountain [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 80,873 | $ 78,750 |
Percentage of Mortgage Loans | 10.40% | 10.60% |
West South Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 61,266 | $ 66,677 |
Percentage of Mortgage Loans | 7.80% | 9.00% |
Other geographical locations [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 96,535 | $ 76,592 |
Percentage of Mortgage Loans | 12.30% | 10.30% |
Office [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 364,698 | $ 333,400 |
Percentage of Mortgage Loans | 46.70% | 44.80% |
Retail [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 220,917 | $ 227,039 |
Percentage of Mortgage Loans | 28.30% | 30.50% |
Industrial [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 141,948 | $ 133,085 |
Percentage of Mortgage Loans | 18.10% | 17.90% |
Other property type [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 53,954 | $ 50,779 |
Percentage of Mortgage Loans | 6.90% | 6.80% |
Investment Operations Impaired
Investment Operations Impaired mortgage loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Unpaid Principal Balance | $ 21,542 | $ 21,766 | ||
Financing Receivable, Allowance for Credit Losses | (766) | (851) | $ (851) | $ (857) |
Debt Instrument, Unamortized Discount | 0 | (87) | ||
Impaired Financing Receivable, Recorded Investment | $ 20,776 | $ 20,828 |
Investment Operations Allowance
Investment Operations Allowance on Mortgage Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | $ 851 | $ 857 |
Charge offs | (85) | (6) |
Balance at end of period | $ 766 | $ 851 |
Investment Operations LIHTC Inv
Investment Operations LIHTC Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 135,084 | $ 135,084 | $ 134,570 | ||
Investment Tax Credit | 3,581 | $ 3,434 | 10,583 | $ 10,109 | |
Income (Loss) from Equity Method Investments | 3,128 | 2,761 | 8,393 | 6,932 | |
Affordable Housing Tax Credit Investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | 92,200 | 92,200 | $ 94,200 | ||
Income (Loss) from Affordable Housing Projects, Equity Method Investments | (1,811) | (1,554) | (5,858) | (5,396) | |
Tax impact of Income from Equity Method Investments | 634 | 544 | 2,050 | 1,889 | |
Income (Loss) from Equity Method Investments | $ 2,404 | $ 2,424 | $ 6,775 | $ 6,602 |
Investment Operations Other (De
Investment Operations Other (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Summary of Investment Holdings [Line Items] | |
Other Commitment | $ 29,800 |
Qualified Affordable Housing Project Investments, Commitment | 4,504 |
Affordable Housing Tax Credit Investments [Member] | |
Summary of Investment Holdings [Line Items] | |
Other Commitment, Due in Next Twelve Months | 2,372 |
Other Commitment, Due in Second Year | 1,164 |
Other Commitment, Due in Third Year | $ 968 |
Investment Operations Commitmen
Investment Operations Commitments (Details) $ in Millions | Sep. 30, 2016USD ($) |
Long-term Purchase Commitment [Line Items] | |
Other Commitment | $ 29.8 |
Investment Operations Variable
Investment Operations Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 123,673 | $ 124,365 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 153,511 | 156,288 |
Low income housing tax credits [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 92,238 | 94,170 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 96,742 | 102,626 |
Investment companies [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 21,077 | 20,004 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 40,108 | 35,604 |
Real estate limited partnerships [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 10,122 | 9,554 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 14,624 | 15,610 |
Other VIE investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 236 | 637 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 2,037 | $ 2,448 |
Investment Operations Derivativ
Investment Operations Derivative instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | $ 14,794 | $ 14,794 | $ 9,518 | ||
Derivative Liabilities | 15,837 | 15,837 | 9,430 | ||
Derivative, Gain (Loss) on Derivative, Net | 1,237 | $ (846) | (1,201) | $ (922) | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 4,900 | 4,900 | |||
Other Investments [Member] | Equity Option [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | 7,658 | 7,658 | 2,331 | ||
Reinsurance Recoverable [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | 4,045 | 4,045 | 2,636 | ||
Available-for-sale Securities [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | 3,091 | 3,091 | 4,551 | ||
Contract Holder Funds [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | 15,469 | 15,469 | 9,374 | ||
Other Liabilities [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | 368 | 368 | $ 56 | ||
Investment Income [Member] | Equity Option [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 1,897 | (1,948) | 4,186 | (2,632) | |
Investment Income [Member] | Embedded Derivative Financial Instruments - MODCO [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 270 | (423) | 1,097 | (629) | |
Investment Income [Member] | Embedded Derivative Financial Instruments - Interest only Security [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 14 | 0 | (451) | 0 | |
Investment Income [Member] | Amortization on Equity Options [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | (1,509) | (821) | (3,983) | (2,177) | |
Investment Income [Member] | Proceeds on Equity Options [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 1,234 | 771 | 1,308 | 2,724 | |
Insurance sensitive product charges [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (669) | $ 1,575 | $ (3,358) | $ 1,792 |
Fair Values Fair Value by Balan
Fair Values Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Debt Securities | $ 7,217,595 | $ 6,637,776 |
Available-for-sale Securities, Equity Securities | 136,977 | 121,667 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 781,517 | 744,303 |
Policy loans | 188,536 | 185,784 |
Other investments | 14,794 | 9,518 |
Assets held in separate accounts | 605,729 | 625,257 |
Liabilities related to separate accounts | 605,729 | 625,257 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 781,517 | 744,303 |
Policy loans | 188,536 | 185,784 |
Other investments | 8,257 | 2,331 |
Cash and short-term investments | 74,346 | 57,741 |
Reinsurance recoverable | 4,045 | 2,636 |
Assets held in separate accounts | 605,729 | 625,257 |
Future policy benefits | 3,955,609 | 3,750,186 |
Supplemental contracts without life contingencies | 330,996 | 339,929 |
Advance premiums and other deposits | 252,661 | 245,269 |
Short term debt, fair value disclosure | 0 | 15,000 |
Long-term debt | 97,000 | 97,000 |
Other liabilities | 368 | 56 |
Liabilities related to separate accounts | 605,729 | 625,257 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Debt Securities | 7,217,595 | 6,637,776 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Equity Securities | 136,977 | 121,667 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 832,253 | 780,624 |
Policy loans | 245,466 | 230,153 |
Other investments | 9,615 | 2,331 |
Cash and short-term investments | 74,346 | 57,741 |
Reinsurance recoverable | 4,045 | 2,636 |
Assets held in separate accounts | 605,729 | 625,257 |
Future policy benefits | 3,981,706 | 3,618,145 |
Supplemental contracts without life contingencies | 342,055 | 339,717 |
Advance premiums and other deposits | 252,661 | 245,269 |
Short term debt, fair value disclosure | 0 | 15,000 |
Long-term debt | 70,616 | 68,133 |
Other liabilities | 368 | 56 |
Liabilities related to separate accounts | 602,134 | 620,676 |
Estimate of Fair Value Measurement [Member] | Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Debt Securities | 7,217,595 | 6,637,776 |
Estimate of Fair Value Measurement [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Equity Securities | $ 136,977 | $ 121,667 |
Fair Values Valuation of Financ
Fair Values Valuation of Financial Instruments by Hierarchy Levels (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 14,794 | $ 9,518 |
Assets held in separate accounts | 605,729 | 625,257 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 9,615 | 2,331 |
Cash and short-term investments | 74,346 | 57,741 |
Reinsurance recoverable | 4,045 | 2,636 |
Assets held in separate accounts | 605,729 | 625,257 |
Future policy benefits - index annuity embedded derivatives | 3,981,706 | 3,618,145 |
Other liabilities | 368 | 56 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 7,658 | 2,331 |
Cash and short-term investments | 74,346 | 57,741 |
Reinsurance recoverable | 4,045 | 2,636 |
Assets held in separate accounts | 605,729 | 625,257 |
Assets, Fair Value Disclosure | 8,046,350 | 7,447,408 |
Future policy benefits - index annuity embedded derivatives | 15,469 | 9,374 |
Other liabilities | 368 | 56 |
Total liabilities | 15,837 | 9,430 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Cash and short-term investments | 74,346 | 57,741 |
Reinsurance recoverable | 0 | 0 |
Assets held in separate accounts | 605,729 | 625,257 |
Future policy benefits - index annuity embedded derivatives | 0 | 0 |
Other liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 696,010 | 702,486 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 7,658 | 2,331 |
Cash and short-term investments | 0 | 0 |
Reinsurance recoverable | 4,045 | 2,636 |
Assets held in separate accounts | 0 | 0 |
Future policy benefits - index annuity embedded derivatives | 0 | 0 |
Other liabilities | 368 | 56 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 7,113,002 | 6,532,183 |
Total liabilities | 368 | 56 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Cash and short-term investments | 0 | 0 |
Reinsurance recoverable | 0 | 0 |
Assets held in separate accounts | 0 | 0 |
Future policy benefits - index annuity embedded derivatives | 9,374 | |
Other liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 229,626 | 205,268 |
Assets, Fair Value Disclosure | 237,338 | 212,739 |
Total liabilities | 15,469 | 9,374 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,833,807 | 3,518,707 |
Corporate securities | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,833,807 | 3,518,707 |
Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,778,875 | 3,469,631 |
Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 54,932 | 49,076 |
Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 54,932 | 49,076 |
Residential mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 437,227 | 465,506 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 437,227 | 465,506 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 437,227 | 461,777 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 0 | 3,729 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,729 | |
Commercial mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 618,140 | 553,992 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 618,140 | 553,992 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 521,441 | 465,812 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 96,699 | 88,180 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 96,699 | 88,180 |
Other asset backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 734,651 | 583,122 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 734,651 | 583,122 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 665,874 | 527,565 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 68,777 | 55,557 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 68,777 | 55,557 |
United States Government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 42,875 | 44,098 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 42,875 | 44,098 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 12,964 | 14,760 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 20,693 | 20,612 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,218 | 8,726 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,218 | 8,726 |
State, municipal and other government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,550,895 | 1,472,351 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,550,895 | 1,472,351 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,550,895 | 1,472,351 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-redeemable preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 107,585 | 91,951 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 107,585 | 91,951 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 99,873 | 84,480 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,712 | 7,471 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 29,392 | 29,716 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 29,392 | 29,716 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,971 | 4,728 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 26,421 | 24,988 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair Values Level 3 Fixed Matur
Fair Values Level 3 Fixed Maturitiies on a Recurring Basis by Valuation Source (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Corporate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 3,833,807 | $ 3,518,707 |
percent of total | 79.20% | 88.90% |
Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 54,932 | $ 49,076 |
Residential mortgage-backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 437,227 | $ 465,506 |
percent of total | 6.70% | 3.40% |
Commercial mortgage-backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 618,140 | $ 553,992 |
percent of total | 0.70% | 1.60% |
Other asset backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 734,651 | $ 583,122 |
percent of total | 12.20% | 4.60% |
United States Government and agencies | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 42,875 | $ 44,098 |
percent of total | 0.10% | |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 9,218 | $ 8,726 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | 8,046,350 | 7,447,408 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | 237,338 | 212,739 |
Available-for-sale securities | $ 229,626 | $ 205,268 |
percent of total | 100.00% | 100.00% |
Estimate of Fair Value Measurement [Member] | Corporate securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 3,833,807 | $ 3,518,707 |
Estimate of Fair Value Measurement [Member] | Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 54,932 | 49,076 |
Estimate of Fair Value Measurement [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 3,729 | |
Estimate of Fair Value Measurement [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 96,699 | 88,180 |
Estimate of Fair Value Measurement [Member] | Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 68,777 | 55,557 |
Estimate of Fair Value Measurement [Member] | United States Government and agencies | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 42,875 | 44,098 |
Estimate of Fair Value Measurement [Member] | United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 9,218 | 8,726 |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 163,377 | $ 140,808 |
percent of total | 71.10% | 68.60% |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 18,361 | $ 17,208 |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 96,699 | 88,180 |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 48,317 | 35,420 |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 66,249 | $ 64,460 |
percent of total | 28.90% | 31.40% |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Corporate securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 36,571 | $ 31,868 |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 3,729 | |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 20,460 | 20,137 |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 9,218 | $ 8,726 |
Fair Values Quantitative Inform
Fair Values Quantitative Information about Unobservable Measurement Inputs (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Future policy benefits - index annuity embedded derivatives | $ 9,374 | |
Index Annuity Embedded Derivatives [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Future policy benefits - index annuity embedded derivatives | $ 15,469 | $ 9,374 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit risk Risk margin | Credit risk Risk margin |
Input range and weighted average | 0.77% - 2.22% (1.35%) 0.15% - 0.40% (0.25%) | 0.80% - 2.25% (1.45%) 0.15% - 0.40% (0.25%) |
Corporate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 42,947 | $ 33,508 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 0.98% - 11.00% (6.93%) | 1.16% - 17.50% (11.26%) |
Commercial mortgage-backed | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 96,699 | $ 71,100 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 1.10% - 4.15% (2.96%) | 1.10% - 4.15% (3.12%) |
Other asset backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 11,814 | $ 13,737 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 1.14% - 5.70% (4.03%) | 1.25% - 7.90% (5.61%) |
United States Government and agencies | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 9,218 | $ 8,727 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 1.65% (1.65%) | 2.59% (2.59%) |
Non-redeemable preferred stock [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 7,712 | $ 7,471 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 4.50% (4.50%) | 4.55% (4.55%) |
Asset fair value by technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 168,390 | $ 134,543 |
Fair Values Level 3 Financial I
Fair Values Level 3 Financial Instruments Changes in Fair Value (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | $ 212,739 | $ 275,390 | ||
Purchases | 66,836 | 95,848 | ||
Disposals | (20,138) | (21,974) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 8,725 | 6,791 | ||
Transfers Into Level 3 | [1] | 59,229 | 18,451 | |
Transfers out of Level 3 | [1] | (90,229) | (139,934) | |
Amortization included in net income | 176 | 669 | ||
Asset Balance, end of period | 237,338 | 221,659 | ||
Liability balance, beginning of period | 9,374 | 8,681 | ||
Purchases | 4,533 | 3,219 | ||
Settlements | (73) | (713) | ||
Realized and unrealized gains (losses), net, included in net income | 1,635 | 2,746 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 0 | 0 | ||
Transfers Into Level 3 | [1] | 0 | 0 | |
Transfers out of Level 3 | [1] | 0 | 0 | |
Liability balance, end of period | 15,469 | 8,441 | ||
Corporate securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 49,076 | 64,239 | ||
Purchases | 2,000 | 12,993 | ||
Disposals | (9,500) | (16,061) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 243 | 4,321 | ||
Transfers Into Level 3 | 26,738 | 18,451 | ||
Transfers out of Level 3 | (13,572) | (25,174) | ||
Amortization included in net income | (53) | 583 | ||
Asset Balance, end of period | 54,932 | 50,710 | ||
Residential mortgage-backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 3,729 | 0 | ||
Purchases | 0 | 19,353 | ||
Disposals | (3,722) | 0 | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | (137) | (273) | ||
Transfers Into Level 3 | 0 | [1] | 0 | |
Transfers out of Level 3 | 0 | (13,667) | ||
Amortization included in net income | 130 | 5 | ||
Asset Balance, end of period | 0 | 5,964 | ||
Commercial mortgage-backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 88,180 | 77,891 | ||
Purchases | 18,826 | 17,286 | ||
Disposals | (1,052) | (688) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 7,093 | 2,088 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (16,418) | (2,334) | ||
Amortization included in net income | 70 | 79 | ||
Asset Balance, end of period | 96,699 | 90,146 | ||
Other asset backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 55,557 | 116,141 | ||
Purchases | 46,010 | 46,216 | ||
Disposals | (5,864) | (5,225) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 691 | 324 | ||
Transfers Into Level 3 | 30,098 | 0 | ||
Transfers out of Level 3 | (57,738) | (98,759) | ||
Amortization included in net income | 23 | (3) | ||
Asset Balance, end of period | 68,777 | 58,046 | ||
United States Government and agencies | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 8,726 | 9,065 | ||
Purchases | 0 | 0 | ||
Disposals | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 486 | 61 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Amortization included in net income | 6 | 5 | ||
Asset Balance, end of period | 9,218 | 9,009 | ||
State, municipal and other government [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 0 | |||
Purchases | 0 | |||
Disposals | 0 | |||
Realized and unrealized gains (losses), net, included in net income | 0 | |||
Realized and unrealized gains (losses), net, included in other comprehensive income | 108 | |||
Transfers Into Level 3 | 2,393 | |||
Transfers out of Level 3 | (2,501) | |||
Amortization included in net income | 0 | |||
Asset Balance, end of period | 0 | |||
Non-redeemable preferred stock [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 7,471 | 8,054 | ||
Purchases | 0 | 0 | ||
Disposals | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 241 | (270) | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Amortization included in net income | 0 | 0 | ||
Asset Balance, end of period | 7,712 | 7,784 | ||
Index Annuity Embedded Derivatives [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Liability balance, beginning of period | 9,374 | 8,681 | ||
Purchases | 4,533 | 3,219 | ||
Settlements | (73) | (713) | ||
Realized and unrealized gains (losses), net, included in net income | 1,635 | 2,746 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 0 | 0 | ||
Transfers Into Level 3 | [1] | 0 | 0 | |
Transfers out of Level 3 | [1] | 0 | 0 | |
Liability balance, end of period | $ 15,469 | $ 8,441 | ||
[1] | Transfers into Level 3 represent assets previously priced using an external pricing service with access to observable inputs no longer available and therefore, were priced using non-binding broker quotes. Transfers out of Level 3 include those assets that we are now able to obtain pricing from a third party pricing vendor that uses observable inputs. The fair values of newly issued securities often require additional estimation until a market is created, which is generally within a few months after issuance. Once a market is created, as was the case for the majority of the security transfers out of the Level 3 category above, Level 2 valuation sources become available. There were no transfers between Level 1 and Level 2 during the periods presented above. |
Fair Values Valuation of Fina41
Fair Values Valuation of Financial Instruments not reported at fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 781,517 | $ 744,303 |
Policy loans | 188,536 | 185,784 |
Other investments | 14,794 | 9,518 |
Liabilities related to separate accounts | 605,729 | 625,257 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 832,253 | 780,624 |
Policy loans | 245,466 | 230,153 |
Other investments | 1,957 | |
Total assets | 1,079,676 | 1,010,777 |
Future policy benefits | 3,966,239 | 3,608,771 |
Supplemental contracts without life contingencies | 342,055 | 339,717 |
Advance premiums and other deposits | 252,661 | 245,269 |
Short term debt, fair value disclosure | 15,000 | |
Long-term debt | 70,616 | 68,133 |
Liabilities related to separate accounts | 602,134 | 620,676 |
Total liabilities | 5,233,705 | 4,897,566 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 0 | 0 |
Future policy benefits | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Short term debt, fair value disclosure | 0 | |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 7,658 | 2,331 |
Future policy benefits | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Short term debt, fair value disclosure | 0 | |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 0 | 0 |
Future policy benefits | 9,374 | |
Fair Value, Inputs, Level 3 [Member] | Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 832,253 | 780,624 |
Policy loans | 245,466 | 230,153 |
Other investments | 1,957 | |
Total assets | 1,079,676 | 1,010,777 |
Future policy benefits | 3,966,239 | 3,608,771 |
Supplemental contracts without life contingencies | 342,055 | 339,717 |
Advance premiums and other deposits | 252,661 | 245,269 |
Short term debt, fair value disclosure | 15,000 | |
Long-term debt | 70,616 | 68,133 |
Liabilities related to separate accounts | 602,134 | 620,676 |
Total liabilities | $ 5,233,705 | $ 4,897,566 |
Fair Values Level 3 Financial42
Fair Values Level 3 Financial Instruments Measured at Fair Value on a nonrecurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 781,517 | $ 744,303 |
Policy loans | 188,536 | 185,784 |
Liabilities related to separate accounts | 605,729 | 625,257 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Future policy benefits | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Future policy benefits | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Future policy benefits | 9,374 | |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 832,253 | 780,624 |
Policy loans | 245,466 | 230,153 |
Total assets | 1,079,676 | 1,010,777 |
Future policy benefits | 3,966,239 | 3,608,771 |
Supplemental contracts without life contingencies | 342,055 | 339,717 |
Advance premiums and other deposits | 252,661 | 245,269 |
Short term debt, fair value disclosure | 15,000 | |
Long-term debt | 70,616 | 68,133 |
Liabilities related to separate accounts | 602,134 | 620,676 |
Total liabilities | 5,233,705 | 4,897,566 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Short term debt, fair value disclosure | 0 | |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Short term debt, fair value disclosure | 0 | |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 832,253 | 780,624 |
Policy loans | 245,466 | 230,153 |
Total assets | 1,079,676 | 1,010,777 |
Future policy benefits | 3,966,239 | 3,608,771 |
Supplemental contracts without life contingencies | 342,055 | 339,717 |
Advance premiums and other deposits | 252,661 | 245,269 |
Short term debt, fair value disclosure | 15,000 | |
Long-term debt | 70,616 | 68,133 |
Liabilities related to separate accounts | 602,134 | 620,676 |
Total liabilities | $ 5,233,705 | $ 4,897,566 |
Defined Benefit Plan (Details)
Defined Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,448 | $ 1,488 | $ 4,344 | $ 4,464 |
Interest cost | 3,612 | 3,300 | 10,836 | 9,900 |
Expected return on assets | (4,466) | (4,463) | (13,398) | (13,389) |
Amortization of prior service cost | 36 | 36 | 108 | 108 |
Amortization of actuarial loss | 2,358 | 2,598 | 7,074 | 7,794 |
Effect of settlement | 0 | 2,944 | 0 | 7,434 |
Net periodic pension cost | 2,988 | 5,903 | 8,964 | 16,311 |
Net periodic pension cost individual entity share | 952 | 1,913 | 2,856 | 5,286 |
Other Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 83 | 109 | 251 | 327 |
Interest cost | 242 | 250 | 724 | 750 |
Amortization of prior service cost | 0 | (3) | 0 | (9) |
Amortization of actuarial loss | 229 | 382 | 689 | 1,146 |
Net periodic pension cost | 554 | 738 | 1,664 | 2,214 |
Net periodic pension cost individual entity share | $ 315 | $ 418 | $ 945 | $ 1,254 |
Stockholders Equity (Details)
Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 49,500 | |||
Common Stock Special Dividends Per Share Cash Paid | $ 2 | $ 2 | ||
Payment Of Special Cash Dividend | $ 49,700 | $ 49,500 | ||
Common Stock, Shares, Outstanding | 24,874,659 | 24,777,925 | 24,808,176 | 24,715,316 |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 76,805 | 129,513 | ||
Issurance of common stock under compensation plans | $ 2,917 | $ 3,790 | ||
Stock Repurchased During Period, Shares | (10,322) | (66,904) | ||
Stock Repurchased During Period, Value | $ (586) | $ (3,742) | ||
Common Class A | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares, Outstanding | 24,863,246 | 24,766,512 | 24,796,763 | 24,703,903 |
Common stock, without par value | $ 152,102 | $ 149,248 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 76,805 | 129,513 | ||
Stock Repurchased During Period, Shares | (10,322) | (66,904) | ||
Stock Repurchased During Period, Value | $ (600) | $ (3,700) | ||
Common Class B | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares, Outstanding | 11,413 | 11,413 | 11,413 | 11,413 |
Common stock, without par value | $ 72 | $ 72 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0 | 0 | ||
Stock Repurchased During Period, Shares | 0 | 0 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, without par value | $ 152,174 | $ 148,088 | 149,320 | $ 144,697 |
Issurance of common stock under compensation plans | 2,917 | 3,790 | ||
Stock Repurchased During Period, Value | (63) | (399) | ||
Common Stock | Common Class A | ||||
Class of Stock [Line Items] | ||||
Common stock, without par value | 152,102 | 148,016 | 149,248 | 144,625 |
Issurance of common stock under compensation plans | 2,917 | 3,790 | ||
Stock Repurchased During Period, Value | (63) | (399) | ||
Common Stock | Common Class B | ||||
Class of Stock [Line Items] | ||||
Common stock, without par value | 72 | 72 | $ 72 | $ 72 |
Issurance of common stock under compensation plans | 0 | 0 | ||
Stock Repurchased During Period, Value | $ 0 | $ 0 |
Stockholders Equity Accumulated
Stockholders Equity Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Accumulated other comprehensive income | $ 292,828 | $ 169,560 | $ 114,532 | $ 258,410 | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 178,873 | (88,885) | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (577) | 35 | ||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||
Accumulated other comprehensive income | 296,291 | 176,691 | 120,787 | [1] | 266,211 | [1] | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | [1] | 175,562 | (88,917) | |||||
Accumulated Other-than-Temporary Impairment [Member] | ||||||||
Accumulated other comprehensive income | 2,245 | 1,078 | (114) | 1,131 | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 3,311 | 32 | ||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||
Accumulated other comprehensive income | (5,708) | (8,209) | $ (6,141) | $ (8,932) | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 0 | 0 | ||||||
reclassifications out of accumulated other comprehensive income [Member] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (577) | 35 | ||||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [1] | (58) | (603) | [2] | ||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Other-than-Temporary Impairment [Member] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [2] | (952) | (85) | |||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | $ 433 | $ 723 | ||||||
[1] | Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 for further information. | |||||||
[2] | See Note 2 for further information. |
Stockholders Equity AOC I Recla
Stockholders Equity AOC I Reclassification Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Net realized capital gains on sales of investments | $ 646 | $ (93) | $ (33) | $ 7,509 | |||
Net impairment loss recognized in earnings | (25) | (413) | (2,247) | (573) | |||
Income available to common stockholders | 29,980 | 26,622 | 80,231 | 82,510 | |||
Income taxes | $ 13,091 | $ 11,520 | 34,637 | 36,057 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (577) | 35 | |||||
reclassifications out of accumulated other comprehensive income [Member] | |||||||
Net realized capital gains on sales of investments | 470 | (1,052) | |||||
Change in offsets to unrealized on investments | (501) | 132 | |||||
Net impairment loss recognized in earnings | (1,522) | (146) | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Prior Service Costs Arising During Period, Net of Tax | (9) | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 666 | 1,122 | |||||
Income available to common stockholders | (887) | 47 | |||||
Income taxes | 310 | (12) | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (577) | 35 | |||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||||
Net realized capital gains on sales of investments | 470 | (1,052) | |||||
Change in offsets to unrealized on investments | (559) | 125 | |||||
Net impairment loss recognized in earnings | [1] | 0 | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Prior Service Costs Arising During Period, Net of Tax | [1] | 0 | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 0 | [2] | 0 | [1] | |||
Income available to common stockholders | (89) | [2] | (927) | [1] | |||
Income taxes | 31 | [2] | 324 | [1] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [2] | (58) | (603) | [1] | |||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Other-than-Temporary Impairment [Member] | |||||||
Net realized capital gains on sales of investments | [1] | 0 | 0 | ||||
Change in offsets to unrealized on investments | 58 | 7 | |||||
Net impairment loss recognized in earnings | (1,522) | (146) | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Prior Service Costs Arising During Period, Net of Tax | [1] | 0 | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | [1] | 0 | 0 | ||||
Income available to common stockholders | [1] | (1,464) | (139) | ||||
Income taxes | [1] | 512 | 54 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [1] | (952) | (85) | ||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||||
Net realized capital gains on sales of investments | 0 | 0 | |||||
Change in offsets to unrealized on investments | 0 | 0 | |||||
Net impairment loss recognized in earnings | 0 | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Prior Service Costs Arising During Period, Net of Tax | (9) | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 666 | 1,122 | |||||
Income available to common stockholders | 666 | 1,113 | |||||
Income taxes | (233) | (390) | |||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | $ 433 | $ 723 | |||||
[1] | See Note 2 for further information. | ||||||
[2] | Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 for further information. |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator [Abstract] | ||||
Net income attributable to FBL Financial Group, Inc. | $ 30,017 | $ 26,659 | $ 80,343 | $ 82,622 |
Less: Dividends Series B preferred stock | (37) | (37) | (112) | (112) |
Income available to common stockholders | $ 29,980 | $ 26,622 | $ 80,231 | $ 82,510 |
Denominator [Abstract] | ||||
Weighted average shares - diluted | 25,029,516 | 25,003,052 | 25,024,099 | 25,019,463 |
Weighted average shares - basic | 24,990,441 | 24,923,202 | 24,977,342 | 24,926,188 |
Effect of dilutive securities - stock-based compensation | 39,075 | 79,850 | 46,757 | 93,275 |
Earnings per common share | $ 1.20 | $ 1.07 | $ 3.21 | $ 3.31 |
Earnings per common share - assuming dilution | $ 1.20 | $ 1.06 | $ 3.21 | $ 3.30 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Segment Reporting Information [Line Items] | ||||||
Operating revenues | $ 178,528 | $ 178,376 | $ 539,695 | $ 536,513 | ||
Realized gains (losses) on investments (1) | 575 | [1] | (511) | [1] | (2,293) | 6,934 |
Change in net unrealized gains/losses on derivatives (1) | 2,181 | [1] | (2,371) | [1] | 4,833 | (3,262) |
Consolidated revenues | 181,284 | 175,494 | 542,235 | 540,185 | ||
Operating Income (Loss) | 37,539 | 35,343 | 104,040 | 101,138 | ||
Income tax on operating income | (8,657) | (8,059) | (23,164) | (22,234) | ||
Realized gains/losses on investments (1) | 402 | [1] | (307) | [1] | (1,142) | 4,421 |
Change in net unrealized gains/losses on derivatives | 733 | [1] | (318) | [1] | 609 | (703) |
Net income attributable to FBL Financial Group, Inc. | 30,017 | 26,659 | 80,343 | 82,622 | ||
Annuity Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues | 54,839 | 53,415 | 160,972 | 159,638 | ||
Operating Income (Loss) | 17,075 | 19,762 | 50,571 | 53,681 | ||
Life Insurance Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues | 101,030 | 101,431 | 309,357 | 305,897 | ||
Operating Income (Loss) | 15,245 | 18,355 | 43,789 | 41,784 | ||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues | 22,659 | 23,530 | 69,366 | 70,978 | ||
Operating Income (Loss) | $ 5,219 | $ (2,774) | $ 9,680 | $ 5,673 | ||
[1] | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired and income taxes attributable to these items. |
Segment Information Reconciliat
Segment Information Reconciliation of non-GAAP measures Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | $ 156,400 | $ 184,000 | $ 516,500 | $ 508,400 |
Change in due premiums and other | 1,126 | 198 | 1,154 | 961 |
Traditional life insurance premiums | 47,682 | 46,719 | 147,425 | 142,758 |
Interest sensitive product charges | 25,851 | 29,856 | 82,989 | 86,250 |
Annuity Segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 894 | 542 | 2,768 | 1,810 |
Life Insurance Segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | 67,270 | 68,159 | 209,194 | 210,461 |
Interest sensitive product charges | 14,210 | 16,994 | 46,638 | 48,916 |
Life Insurance Segment [Member] | Admiin charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 3,347 | 3,558 | 10,434 | 10,763 |
Life Insurance Segment [Member] | Cost of insurance charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 12,314 | 11,947 | 36,181 | 35,162 |
Life Insurance Segment [Member] | Surrender charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 259 | 254 | 785 | 740 |
Life Insurance Segment [Member] | Amortization of policy initiation fees [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | (1,710) | 1,235 | (762) | 2,251 |
Corporate and Other [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 10,747 | 12,320 | 33,583 | 35,524 |
Corporate and Other [Member] | Admiin charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 1,313 | 1,392 | 4,232 | 4,426 |
Corporate and Other [Member] | Cost of insurance charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 7,450 | 7,500 | 22,399 | 22,311 |
Corporate and Other [Member] | Surrender charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 89 | 46 | 162 | 238 |
Corporate and Other [Member] | Separate account charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 2,019 | 2,204 | 5,990 | 6,722 |
Corporate and Other [Member] | Amortization of policy initiation fees [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | (124) | 1,178 | 800 | 1,827 |
Life insurance - interest sensitive [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | 20,714 | 21,638 | 62,923 | 68,664 |
Life insurance - traditional [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | $ 46,556 | $ 46,521 | $ 146,271 | $ 141,797 |
Segment Information Goodwill by
Segment Information Goodwill by segment (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Annuity Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 3.9 | $ 3.9 |
Life Insurance Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 6.1 | $ 6.1 |